Up well also talk about another big worry for the market mastercart cutting revenue, thats a 5 drop whirlpool, as mike santoli just mentioned, on a guidance cut, as consumer cut back on more expensive items. Mattel and hasbro also reporting. Meta results and koumt tear are weighings on that stock. Steve kovach joins us to break it all down. Meta shares falling today, on idea that the company has at the beginning of this quarter after the war between israel and hamas broke out earlier this month. That caused meta to issue a wider than normal revenue guidance range, due to that uncertainly. Meantime, that Metaverse Division continues to lose gobs of money meta says the real question is, around where meta fits into the a. I. Space. To support other a. I. Products the midpoint of its Spending Outlook is below wall street estimates, guys. So, the market is reacting negatively to this was this report as disturbing as the market seems to make it . No, because the advertising business is booming. The tiktok competitor is performing better, kind of the standard format on instagram, so all of these engines are humming right along. Its really similar to what be heard from staff the day before, where this is an uncertain environment as war breaks out in the middle east. Steve, thanks very much. Chip stocks and software nair are getting hit Kristina Partsinevelos has more. As steve point ed out, investors are worried for less revenue. All three companies, nvidia is almost 20 below its 52week high, but the reaction may be overdone in september, meta highlighted plans to spend on over 60,000 graphic profits, gpus, and given theres currently a backlog, meta may have to be forced to push out the spend next year but some of that meta cap ex weakness could be offset by continued spending for microsoft. Microsoft actual ly, and networking investors should actually buy this pullback in arista stock. Its also impacting me like cisco systems, super microcomputers, and i would say again, this might actually be an overreaction, the 2024 projections do not account for orders from meta, which means as meta cut back on cap ex, may not actually impact them and that gpu backlog, how is that looking i dont know if you remember about four months ago elon musk set gpus are harder to get than drugs. Just a month ago cnbc broke a story that microsoft is spending billions on renting gpu space because they cant get their hands on enough gpus to keep running openai this is still a problem for the hyper scalers going into 2024, which is why that cap ex spend mine lower this year i would like to point out, the backlog has to do with the packages, not the actual gpu wafers themselves. That we know from a recent earnings report. Kristina, thank you very much tech is tumbling the nasdaq down 5 in october, even though earnings have been pretty strong so far rising yields, those are among the reasons that tech is selling off. As we await amazon results hi, dee. Let me put this most simply its the year of efficiency very a. I. Hype. Laceoffs first but now the street may be getting nervous again about margin erosion, and weighing the promise of generative a. I. So the question for amazon is whether the weakness we have seen in meta shares is about the fundamentals or part of a yield driven affecting equities as a whole. Amazon has been a mega cap leg ar over the past few months. So the bar is arguably lower here, but it will still need to balance those costs with the growth its cloud unit is the profit engine of the company. It helps pay for all those ambitions, particularly in artificial intel jenks, but Revenue Growth has been decelerating the street wants to see that slump real ly has bottomed or not. Amazon could get another drag on the market, guys i get the question, deirdre, since we cant see into the future, what would probably be the most sensitive pain point for investors in this report. For amazon . Its aws, without a doubt. This is the profit engine. Its a big season for Holiday Shopping tip wale amazons biggest, but really the street wants to know that cloud has bottomed. Thats where its putting all of its a. I. Efforts as well going the cloud was weaker, and said the customers were reoptimizing their spend. Microsoft is seeing some of the ben fritz from their a. I. Tools. Im not sure what well see, but it definitely has the ability to throw off markets further, say if Revenue Growth comes in at 13, some on the street say that would be bullish deirdre, we appreciate it its not just tech were watching ford is also reporting, but those results take a backseat with the deal between ford and uaw. Phil, what do we know . Soft of the is on the fact that the uaw members will get a 25 raise, 30 when you at in cost of living adjustments heres what analysts will be focused on, the allin labor costs. The current contract, allin hourly labor costs is estimated to be at 66. 79. After this contract goes through, if ratified, that figure would jump up to almost 88 an hour, according to wells farthero and a dat center for research those members picketing, some are actually back on the job today. They are no longer picketing others, it will take time for them to go back into the plant ford will gradually resume production you cant just immediately flip a switch the ratification vote could be as early as next week, or the week after in the meantime theyre not going to wait until its approved to go back to work. Theyre going back to work right now. As you mentioned at the top of the segment, today is the day we go ahead fords earnings results. The street is expecting a 50 jump in earnings per share, compared to the Third Quarter of last year, but then during the Conference Call later on, the focus is diagnose to be for jim farley, the questions from analysts, what does the uaw contract mean. Can they invest as much as theyd like to on electric vehicles or will they have to pivot more to hybriding. Shares of stellantis and gm continue their discussions so well see if theres impetus. Reporter look at the mack truck contract the rank and file said, no, no, no, we dont approve this. There is the possibility that you could have some members who will sit there and say hold on you for more you also have a good chance that shawn fain and his team could say, look, weve got a lot here, a lot more than theyre used to. We think this is a good deal i dont think they would have approved it if they didnt think it was a good shot at ratification. No, it would seem that way. Phil lebeau, thanks very much. Lets get straight to kate rooney over at the court hose. Reporter Sam Bankmanfried is on the stand, but the catch here, the jury is going home hes on the stand talking about the judge, the defense team, the prosecution about what evidence they can use, so the defense rather sent a letter in last night talking about the strategy their whole thing is about good intent, the fact he did not have criminal intent here one of the things they want to bring up is whats called an advice of counsel strategy, especially if youre blaming it on the lawyers the judge a couple months ago said they cant use that, but theyre going back and forth its a hearing within a hear hearing. The other thing is the bahama regulators can talk about what happened there theyre going to go through some of the structure of whats going to be late out but Sam Bankmanfried is on the stand. So its basically bankman fried or his defense team, that, hey, the lawyers thought what i was doing was cool. They claim its to the state of mind. They should be able to bring up the strategy, so theres a bit of hangering over that the prosecution will get a lot of time to crossexamine him and poke holes in the story. It is up to the judge on how long he spends in prison, if found guilty its been a tense relationship so far the judge in this case has revoked his bail, scolding the defense team in recent weeks, and hes got the defense team on a tight leash. So its a big risk here. Another closely watched name, thats whichipotle lets go to kate rogers for that story. Analysts are expecting an eps of 10. 55. Comps are expected to increase up 4. 6 versus the guidance of low to mid Single Digits pricing is always a focus. Not really seeing consumers pull back or trade down in the face of higher costs. It did confirm earlier this month it would take a modest price increase to offset inflation. The company saw higher praises for tortillas, along with dairy and beech, but avocados came down in price its also one of the best performers in the sector for the year. Weve seen interestingly companies that have a higher price point are doing a bit better in term of stock perform performance. Back over to you. Fantastic thank you very much, kate. Coming up, representatives from a number of the nations retailers join the retail lobby groups in d. C. To meet with legislators to discuss the countrys organize the retail crime problem. Well be right back. In the u. S. We see millions of Cyber Threats each year. That rate is increasing as more and more businesses move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. Municipal bonds dont usually get the Media Coverage the stock market does. In fact, most people dont find them all that exciting. But, if youre looking for the potential for consistent income thats federally taxfree, now is an excellent time to consider Municipal Bonds from hennion walsh. If you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 18002173217. Well send you our exclusive bond guide, free. With details about how bonds can be an important part of your portfolio. Hennion walsh has specialized in fixed income and Growth Solutions for 30 years, and offers highquality Municipal Bonds from across the country. They provide the potential for regular income. Are federally taxfree. And have historically low risk. Call today to request your free bond guide. 18002173217. Thats 18002173217. Welcome back shrink has a buzzword for retailers. Today, some of the biggest retailers are in washington looking for Health Reporter representatives are jo joining with retailers to talk about combatting organize the real tail crime act. They got a Multiagency Group under Homeland Security to pool information and intelligence in order to with new federal standards. One of the main purposes is that it allows us to have a charter within a federal agency to actually help us create a clearhouse, to investigate more officially and more in depth. The escalation is really a big concern. These crime rings know that, and they often steal just below the local felony thresholds, lowering the chance of prosecution different states have different penalty its a total dollar value of the stolen goods exceeds, local prosecutors can pursue a federal charge. Several of the post but getting into the committee and beyond can a concern kellie and tyler how do the perpetrators know as theyre going through and collecting things theyre getting close to the felony charge limit good question fast math, calculators, it is really true. Perhaps they know the price of the items in advance, right . They know they can get ten packs and be below that felony threshold. And its not an aggregate number it means, say, the threshold was and it doesnt get aggregated this would aggregate it. Court, thank you very much. Consumer are taking on more debt, but does that mean theyre cutting down on more so far are you saying that those higher rates dont seem to have dampened the consumers i this i with the september retail sales, the consumer is going strong how does the consumers pay for all of it . And are they potential spendings more than they can afford . How do you get a judge on that very point . Is it by tracking delinquencies . Is it at that point you start to notice chargeoffs that banks have you start to notice that the engine is starting to sputter . The delinquency is definitely something to watch it has picked up thats one of the factors of concerns, macys called that out. Kohls has called that out the other dynamic, Interest Rates have gone up significantly. That means its just a lot more expensive to borrow. Holiday shoppers may not be aware theyre paying so much more if they carry that from month to month plus, student locals are coming back so last year around this time, the average credit card Interest Rate was around 15 this is about the cards they get you to sign up the average for that is 30 . That was a card issued by i dont mean to throw out a retailers name bloomingdales will charge a higher rate . Typically thats the case those cards are more expensive thats what shoppers use, because they say youll get special access or early access to sales or deals if you use our card that card may not be regularly in your rotation, you meat forget to pay it, or maybe you charged higher than expect thats what can get some into tro trouble. Buy now pay later is expected to go up 36 of consumers said theyre paying that way they said about a third of the consumers, sometimes pay now buy later, but pay off the installment with a credit card. That can lead to a spiral. Melissa, thanks. Dealmaking is heating up in the energy space, bringing total transactions across the u. S. Up to 17 4 billion whoses next thats after a break chevron and exxon both spending big on acquisitions Pippa Stevens has some names that might be next were seen this enormous wave of acquisition theres been 474 billion worth of deals, and of course, you can see how much larger this has been before. The Permian Basin is where a lot of people have been focusing on a slightly smaller scale, matador. Now that chevron and exxon have both done two transactions this year, so theyre presumably off the table a bit. Conoco has moved from being an acquired to an acquirer. So a lot to watch, a lot of activity so look for totale in europe, and conoco in the u. S. As acquirers . Yes, those are the two biggest ones that could acquire a largecap u. S. Company also, there could be smaller moves as well. Im sure its not maybe in some cases, piece by piece, but overall its there is there a takeover premium being put in there on the hopes or expectations that maybe theyre the next target . The one thing about that is allstock purchases. Thats kind of the executive thing, were not sure about what the oil and gad environment looks like so all stock deals could make more sense at least the shareholders of the former company can participate in the up side thank you, pippa Bertha Coombs has the news update. Two senior Law Enforcement officials tell nbc news that the weapon used by robert card was purchased legally this year. There is a massive manhunt underway for card. A judge is reconsidering the 10,000 fine he imposed against donald trump yesterday for violating a gag order in his civil fraud trial. He fineded trump for the second time after the former president appeared to have made a reference about his clerk to reports outside of the courtroom. Trumps attorney claims the fine violated the former president s free speech rights and the beatles are back. The fab four will be out with a new song called now and then. The release of the song which is being dubbed as the last new tune was made possible by artificial intelligence. It helped to isolate john l lennons voigce on a demo, and t includes decadesold guitar parts from George Harrison so youve got the Rolling Stones touring, and the beatles out with a new record. Rolling stones are out with a new record or dropping soon. Bertha, thank you. Ahead on power lunch, a key contrarian call. Oppenheimers john stofos has a shockingly high yearend s p target well speak to him next. This thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. When you need to prepare for unpredictable adventures. gasp you need weathertech. [hot dog splat. ] laser measured floorliners front and rear. [drink slurp and splat. ] scream seat protector to save the seats. [honk ] theyre all yours were here hey, i knew you were comin. So i weatherteched the car can we get ice cream . We can now. Kid proof your vehicle with American Made products at weathertech. Com. Welcome back to power lunch. Our next guest has a 4900 estimate for the s p john, welcome. Did you mean to find yourself in this position . Kelly, what we raised our target to 4400 back at the begins of august at that point, it met that had be 6 to 7 up side to the end of the year. I think its something closer to 17 or 18 to the end of the year that said, its not atypical for markets in the process of getting near the end of a fed funds hike cycle to have a lot of arguments happening between bulls and bears when we put the 4400 target back in, people thought we were nuts the s p 500 had a horrible year in 2022. A lot of people expected it as to extend into 2023. There were several fabulous rallies during the year that occurred, and now at this point we are experiencing a correction thats enough to catch a bullish views attention that said, youve got to remember when we put that target in, we were expecting the fed would continue to be environmental land against inflation, but remain sent tiff to the effect of its policy on the economy. It has remained so we also expected it will depend on the resilience of the economy. Todays prints has resilience all over it. The occurrence Third Quarter season is showing resilience i think you only have two sectors right now with 340 reporting negative earnings. So, john, why is the market not responding to those things you checked off all the boxes, but the market is down from where it was when i made that switch well, i would say the real significance, tyler, is when we look at the tenyear yield once it reaching 5 , if you consider the generation gap that exists in the market, 5 sounds like an extraordinary rate of yield on a tenyear treasury. From a historical perspective, 4 , 5 is what a yield would usually be like during a normal period the problem is, for 15 years, weve been in predominantly emergency periods, whether it was the financial crisis of 08, or the pandemic, or the process of the worries about would the pandemic resurgence return with the whole supply chain being resolved, what would happen. I think the highly leveraged players are also deeply incensed about fed policy, raising the benchmark from a range of zero to 0. 25, to 5. 25, to 5. 5, and this is the protest. Youre seeing it right now so, youre arguing that what didnt cooperate here was longerterm bond yields and thats whats spooked the market exactly ironically its the longterm bond yields coming up that will help the fed be more sensitive Going Forward in the next 12 months or so, as inflation is brought down by just a slowing in the economy, which is not uncommon when the fed is tigh tightening. So, a bit of an inside question about the business. You made that price projection on august 1. Are you able now to change it if you wanted to and say, oops . We cant change it. Needless to say, its under consideration. The problem is were running out of calendar time should we do as the bears do bears have been predicting a recession now for several years. I thus just keep pushing it forward. What we see, the wonderful thing, once again bond issuers have to pay for the privilege of borrowing money, and bond buyers get something in return with a coupon it threatens zombie companies, memes, all kinds of gambling t thematics, but for fundamental investors and for retire years, this is a good thing. John, we appreciate your candor today well see you again soon. Sad news to share, byron weem, from blackstone, has passed away. Always plainspoken byron was familious for releasing his socalled ten surprises each year where he gave his views on the economy for the upcoming year. Prior to joining blackstone, he spent more than two decades at morgan tstanley. His final thought in an essay, never retire i know theres a bunch of biological evidence against the theory, but im going with it, anyway mr. Wien, was 98 years old, very avid skier, we will miss byron people are excited about what ai will do for them. Were excited about what ai will do for business. Introducing watsonx a platform designed to multiply output by training ai with your data. When you watsonx your business, you can build ai to help coders code faster, Customer Service respond quicker, and employees handle repetitive tasks in less time. Lets create ai that transforms business with watsonx. Ibm. Lets create. Ameritrade is now part of schwab. Bringing you an elevated experience, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. And sharpen your skills with an immersive Online Education crafted just for traders. All so you can trade brilliantly. Sam bankmanfried is set to take the stand in his own defense, but the judge sends the jury home as they try to work out what lawyers are allowed to ask. Lets bring in Danny Cevalos its rare that a defense in a case is put on the stand by his defense. What are the risks both for the defense and for the prosecution in having to question and crossexamine this principal. For centuries, the rule is never, ever put your client on the stand. In the last few years, that trend appears to be moves in a different direction in highprofile cases sieve seen several highprofile devils, some with some success, some with zero success the government has built quite an impressive case, this may be as simple as an act of desperation. The pitfalls for the government are no that, no matter how well versed the crossexamining attorney may by in his bits, it is doubtful he knows as much about the business as friedman himself. So theres some traps. Danny, what about this particular move of dismisses the jury so evidently the judge can listen to the testimony and, what, figure out if hes going to do himself too much damage before the jury . No, in fact this goes back to september. The judge issued a order limiting the kind of evidence that the defense could introduce. One of those was the idea that the judge would determine on a momentbymoment basis whether Sam Bankmanfried could raise the issue of, hey, there were other attorneys around and maybe they cant sort of sanctioned this theyre dancing around having to commit to a advice of counsel defense. Theres a lot of minuses to formally raising that. Theyre trying to have their cake and eat it, too the judge in september said i will evaluate this when the issues comes up, because this is something he has to hear out of the hearing of the jury, decide whether its admissible. If so, the defense will be allowed to put it on, but the judge may concluded, no, no, this is what i ruled on back in september, this you cannot admit. Correct me if im wrong, danny, the advice of counsel defense has come up in the context of former president trumps civil trial in new york city, where he presumably is also expected to take the stand. Am i right you are exactly right if you raise that as a defense, theres a lot of bad things that can happen right away. One is you destroy the attorneyclient privilege. I never told him that, that was not my advice, that kind of testimony would be devastating for a defendant. There are pitfalls to use the advice of counsel defense. Thats why you see sbfs defense trying to straddle the line and use a quasi advice of counsel defense. It was kind of unofficially sanctioned by counsel, maybe the judge is probably not going to let them straddle the line. Hes probably going to make them commit one way or another, or compl completely say no to the evidence is this a broad are sign of the economy . Well trade that name it three stock lunch, coming up l services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. In the u. S. We see millions of Cyber Threats each year. That rate is increasing as more and more businesses of us living here. Move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. Heres why you should switch fo to duckduckgo on all your devie duckduckgo comes with a builtn engine like google, but its pi and doesnt spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. And theres no catch. Its fre. We make money from ads, but they dont follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. Welcome back time for todays three stock lunch. U. P. S. , down more than 4 on a Third Quarter revenue miss the Company Warns of economic headwinds ahead. Victoria green is here with us today, and victoria, welcome what do you think of u. P. S. . Its not a buy for me yet even their guidance has been cut in the last three months, and now theyre only recovering to about 10. 8 labor is about 58 of the overall expenses, and lower volumes, because they had a disruption where people left leaving because they were concerned about the strike you have holidays, bringing on 100,000 seasonal workers, i think lower revenue and higher costs, thats not great for Profit Margins what about dr. Pepper . They had a healthy q3, reaffirmed fullyear guidance. What would you do with this one . Its a buy for me i really like this stock everybody kind of hated on staples, but they came through i like their product mix coffee is constituent sorting itself out theyre kind of getting lower margin business. Coffee still transitioning, but they they have a great product mix. Theyre continuing, even if theyre having pod volumes down, but about 85 u. S. Generated revenue, so they dont have the headwinds that pepsi faces they have cornered the market for ginger ale wow, i did not know that. I drink a lot of ginger ale. Learn something new every day. This is stock is missing some teeth today, after missing the consensus mark, cutting the fullyear revenue guidance, warning of deteriorating Market Trends how do they get back in alignment . Oh, man, that was horrible puns there, but i love it. This is a catching a falling knife situation. Theyre probably pushing back down to covid lows case starts are down you have bad macro headwinds theyll face they see headwinds. Everybody does lice straight nicelooking teeth, but it is a bit of a luxury. So you look around and think it may be too early i think jeffries said they might be in the penalty box for a bit longer for me its a wait and see i dont think it adding up to growth for them. You really need the markets to turn to the point theyre getting more cases started and they can see higher lines. Victoria greene, thank you very much. We appreciate it. Thanks, guys. Im going to grab a ginger ale. Yeah. Well be right back. Power e trades awardwinning trading app makes trading easier. With its customizable options chain, easytouse tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. E trade from morgan stanley. Power e trades easytouse tools make complex trading less complicated. Custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. E trade from morgan stanley. Welcome back starting with usage on x or twitter plummeting in musks first year reportedly active users down 15 globally, almost 18 in the u. S thats for the month of september. App downloads also down 30 globally but if you still see a tremendous number of references to x if the media. I still find it indispensable, but i understand why. Its a niche product at a time when theres so many other messaging type apps more than ever. All righty taylor swift helping to propel credit card fees back in july, they had presail tickets to swifts six shows in singapore. She is one of the best Business People ive seen. This is why we follow the taylor swift updates if you didnt know, now shes doing the singaporean credit cards . Shes a smart cookie. The business of streaming is lucrative. Digital royalty collection surged 34 , as consumers turned to music and Video Subscription Services there was a pandemic boom, streaming collections have doubled from the precovid level. Surpassing tv and radio. Sometimes i hear different reports about how lucrative this is i guess the volume of streams have become so large, its overcome the pennies or nickels you used to get every time. Maybe the road piece is also dwindling. Propalestine protesting on roblox have attracted hundreds of thousands just another thing parents have to work about in this digital age, and now they have to deal with social issues as part of the information conflict that goes along with the war there. If youre a roblox user, be aware. If youre a parent, and roblox as a company will have to ultimately deal with it. I guess this is a video game, the real archenemy is a second mortgage. Peter parker pays about 44 ahn month with almost a 7 Interest Rates and nearly 500,000 of remaining principal. Good luck with that, spiderman. Thanks for watching power lunch. Closing bell starts next. Kelly, thank you so much im scott wapner there makeorbreak hour starts with stocks on the reteeth again. Amazon reports earns in overtime mark ma haney is here with me momentarily. We start with the nasdaq, trying to