Afternoon. Two big deals to tell you about. First, disney and charter ending their dispute right in time for charter customers to watch monday night football on espn. A lot of new york subscribers. The jets, as everybody here knows, are playing tonight. Charter shares are up 3 1 2 . Wbd up as well on brighter prospects for the tv business. Well have more on that coming up. And a different kind of deal. Smucker is buying hostess for about 5. 6 billion. Should help smucker grow in what the ceo is calling Convenient Food occasions and what we call junk food. Well get a traders take on what this mean for smucker a little later in the show. And we should note those shares are down 7 . So a lot of investors, tyler, a little concerned about the valuation. Kelly, did the giants actually play last night . Were you there . I was there. I felt bad. Soaked and smoked. Believe me. And left at halftime. Wow. All right. Stocks higher today after starting off september with the all too common september slump. Where does the market stand right now . Lets bring in our own mike santoli for more. If you looked at it from a distance, the market behavior this year has been really sticking pretty close to the pattern, the script that you might draw for it, which is strength into july after we had that minor peak in february. And then yes, august, been some chop. We had to kind of cool off in the way of sentiment, in the way of valuation, in the way of technical positioning. All thats been under way. But i think theres also this subtheme out there, and one of the reasons that the market has been very i guess sort of twitchy in the last few weeks is that this late cycle psychology is pretty much pervasive. That means people presume that were in the latter part of this economic expansion. It doesnt go by a clock. You dont really know how much longer it has, how long we can stay late, so to speak. So therefore, were very sensitive to upticks in bond yields, oil prices, whether theyre going to restrain a consumer thats already running out of a cash cushion. And even the u. S. Dollar which has been on quite a run. All this boiled together i think essentially is what we have ahead of us. I also agree, by the way, i know you teased it ahead, bad news is probably bad news right here because you have a fed that said theyre going to be patient. If they move at all its going to be spaced out in small increments. So i dont think youre fearing the fed right here. Youre wondering if the economy in general can handle what yields are up to at this point in the expansion. All right, mike, thank you very much. And we will of course see you at 3 00 p. M. For the closing bell today. Mike santoli. Lets keep the conversation rolling with our next guest, who says and warns weve all heard the line, bad news is good news, it keeps the fed on the sideline, so forth and so on. He says no, bad news is bad news, no matter how the markets have been reacting lately. Lets bring in chris senic, chief investment strategist with wolfe research. Its great to see you, chris. And explain what youre trying to see here. Yeah, hi, kelly. Thanks for having me. So were in this phase where whether the fed hikes zero or one or two more times i dont think is really the story here. Its about how quickly will the economy slow and in fact how will stock sectors react to bad news, right . Weve all talked about mike talked earlier about the consumer slowing sentiment. We think the bad news will in fact be perceived as bad news. You dont have a fed liquidity drive in stocks. And the lag defect of fed rate hikes is just starting to show up. Weve looked historically and it takes about 18 to 24 months for the impact of fed rate hikes to hit the Consumer Spending. And if you think a year ago the fed funds rate was still before this next spending at only 2 1 2 . Right . So it just takes time. And we got a little ahead of the gun thinking it was going to show up in the first half and in reality i think its going to show up in the second half. And what does that mean . The obvious implications to that if it sounds like its worsening are lower stock prices, maybe lower bond yields. The whole thesis that i bet a lot of people in our audience dont want to hear right now. I think what the markets struggling in the near term is rates and oil. Higher oil prices push up Interest Rates on the long end and it creates a little bit of problem for the fed. Sort of the quickest thing weve argued that can end the disinflation narrative is higher oil prices, something many of which including the fed cant predict. And secondly it is incredibly what the bank of japan is doing in letting their longterm Interest Rates back up and relaxing yield curve control is pushing up longterm Interest Rates. So i think as u. S. Longterm Interest Rates move up over the next few months here that itself is going to slow the economy. And i think ultimately Interest Rates and below 4 on a tenyear by the end of the year as the economy really slows. And if in fact we do see higher Interest Rates i think that starts to slow housing which starts to slow Consumer Spending and it has this in a way Snowball Effect on the economy. I was going to ask you to talk a little bit about what you see in housing and what the effect of that is on Consumer Sentiment and then Consumer Spending. What they feel and then what they do. So why dont you do that and also address how inflation is affecting Consumer Sentiment and Consumer Spending because as people look at prices that are stubbornly high for groceries, for gas, for other things they may not be spending as liberally as they had been. Yeah, so theres a lot of news in the press about real wages becoming positive again, right . And that has happened in the past. Just as youve gone into a recession. But i think what a lot of the folks miss is that theres the cumulative impact of inflation. So just because a good went from 100 to 120 and now its only going to 125, we get excited about it because thats disinflationary. But its still 25 over the last three years. Such that if you look at some of the surveys by new michigan looking and asking consumers are cars and houses affordable, the results look terrible. People are saying houses and cars arent affordable. The two biggest areas of the economy arent affordable. I just dont think that can be a good thing. I think housing prices and them being Strong Enough over the last three years has really propped up the consumer. But low inventories is whats holding, you know, prices up. Right . Because you have an asset which hasnt adjusted to fair value because of higher Interest Rates propped up by the fact that theres no inventories. And i worry that if you all of a sudden start to see a slowdown in the economy, start to see more job losses you could just see a total rash of inventories enter the Housing Market and see a bigger than expected collapse in prices than many folks are anticipating. So we think because houses thats not a good thing, thats a bad thing. Ultimately its got to infect hit and demand down the road. The fed meets next week. Theyre not going to say it. Theyre not going to say theyre done. But what if they are . I think, tyler, if theyre done i think whether theyre done or they hike one or two more times, i dont think thats the story here. I think the story is how quickly is the economy going to slow and is it going to slow or not. And our view is its going to slow enough to move the sentiment from soft landing narrative, which is the widened consensus now, to rising recession risks again. And thats all you need to do to impact stock multiples. More earnings may end up being okay for the type time being but to me the real story heres going to be how much if any do multiples for the market compress because of either higher Interest Rates or because expectations shift now to rising recession risks yet again as we kind of get into the fourth quarter. Have to leave it there. Chris, we thank you very much. Chris senyek, we appreciate your time. Well, in the meantime, disney and charter reaching a deal to end the cable blackout before espn before monday night football kicks in. Julia boorstin has the details. So the jets fans or the bills fans will be happy. Im afraid we dont have she was talking, obviously, about the jets and the bills. But thats a good point about the bills as well. These are big media markets. Charter has a lot of new york customers. And i dont want to steal from what shes going to talk about but the details are so interesting because charter subscribers could potentially get disney plus and hulu and espn plus. Well circle back to her in a second. Should we get some news in the meantime from the fda on Covid Vaccines . Novavax shares are moving sharply lower as theyre left out of the bunch. Angela peoples has more. Thanks, kelly. The fda has greenlit new shots from pfizer and moderna. Those shots have been updated to protect against newer variants of covid. However, as you noted, we have not received a decision on novavax. The company says that its application is still under review with the fda. And the fda is saying that people 5 and up are eligible for another Covid Vaccine about two months since their last one and people six months to 4 years old could receive one to three depending on how many theyve already received. Tomorrow we will hear from the cdcs advisers, who will make some more specific recommendations. Until then we are waiting. Pfizer and moderna are both saying that they should have their vaccines ready to go as soon as this week. Back to you, kelly. Yeah, its a biggie. Angelica, thank you. Thank you. We appreciate. Angelica peoples reporting. Apple is being the most talked about stock on the street once again after last weeks china drama and today announcing a new supply deal with qualcomm. And you may have heard about its little event coming up tomorrow. We will get you the details on all of that. Also, tesla, another stock which gets a ton of attention, and its up almost 10 today after an upgrade from influential auto analyst adam jonas. Does our trader see what he sees . Well ask her coming up later on. Dad, we got this. We got this. We got this. We got this. Life is for living. We got this. Lets partner for all of it. Edward jones businesses need 5g solutions today. Thats why they choose tmobile for business. Mlb partners with tmobile to not only enhance the fan experience, but to advance how the game is played. Aaa relies on tmobiles network to stay connected nationwide, so they can help get their members back on the road. And were helping pano ai innovate, to stop the spread of wildfires. Nows the time to see what americas largest 5g network can do for your business. As we mentioned earlier disney and charter reaching a deal now toned the cable blackout for espn right before monday night football. And once again we go to Julia Boorstin who has the details. Hi, julia. Hi, tyler. Im here. And this deal was made just in time. And this deals what disney and charter are calling transformational is what sources tell me, is a modern melding of linear tv rights and digital distribution, and it really forges a new path for charters paid tv business while also dramatically increasing the reach of disney plus with ads. Now, disney plus ad supported tier will be included in spectrum tv select video packages. Not for free for charter but what they call a wholesale arrangement. And its guaranteed for all of spectrums video subscribers. Meanwhile, espn plus will be included in spectrum tvs select plus video packages and when espn launches its direct to consumer Flagship Service it will be made available to spectrum tv select customers. And charter says it will sell all of disneys direct to Consumer Services to its broadbandonly users. Now, sources tell me this is really seen as a winwin. Though charter is dropping some of disneys smaller channels including freeform and disney xd, that is far outweighed by new compensation for disney plus. And then additional upside from that platform reaching a broader audience with its advertising. Meanwhile, charter has some new value to retain its paid tv subscribers. It does have that broadband business but it wants to retain the pay tv business as well. Kelly, tyler . How much should we look at this, julia, as a template for future carriage agreements . I think its very much a template for future carriage agreements for disney. Its unclear how much other Media Companies will be able to follow in this path and use it for their future carriage agreements. Disney is of course unique in that it does have this portfolio, direct to Consumer Brands in disney plus, espn plus, hulu and then of course there are also developing this espn direct to consumer business. So disney does have that sort of portfolio. It will be interesting to see what happens with Warner Brothers discovery. They do have max. And weve heard from Ceo David Zaslav about how they want to build that into its own mini bundle and incorporate sports as well. But i think this is going to be part of the conversation now. If you are a Cable Provider and you also sell a pay tv bundle, the question is going to be how are you incorporating both of these into your negotiations. I have to say at great career risk that i think very highly of a lot about comcast in this situation because comcast is both a deliverer of content and a creator distributor of content. And thats going to be a gnarly issue down the road, it would seem to me. Well, comcast has been both a supplier and a buyer, if you will, for quite a long time now. But also remember that comcast has the broadband tv business. So comcast is also providing the pipes and even if people cut the cord or switch to these digitally provided bundles like a hulu with live tv or a youtube with live tv they have to get the broadband in order to be able to stream that content. Sure. So being a pipes provider does provide comcast an advantage here. And theyve been playing around with some of these skinnier bundles with this idea of a direct to consumer bundle thats over the yrnt rather than traditional cable tv. So comcast really has its hands in every different part of this business. Fascinating changes coming to this business. Julia boorstin all over it as usual. Thanks. And apple is back in the spotlight today. After dropping last week on china concerns and ahead of a big Product Announcement tomorrow, today theyre reaching a deal with qualcomm on chip production. Steve kovac joining us now. I dont think is he in San Francisco i didnt even realize steve, i thought you were here earlier when we were no. Wow. Okay. West coast. Kristina partsinevelos is right here with us on set and theres many angles of this to discuss. First of all tell us about the deal. Its important because two reasons. One, you have qualcomm thats going to continue supplying modem chips to apple until 2026. So thats seen as a win, especially because apple is its largest customer, contributes over 23 of total revenue. Thats a win. The second major part of this too is that the patent Licensing Agreement will also continue. Thats seen as a separate stream of revenue for qualcomm. Both of them coming in. However, if you look at the stock price, it jumped up 8 earlier this morning. Its come down off of those highs. Theres probably two reasons for that. One is we dont know the actual terms of the deal but the assumption is that maybe qualcomms giving some type of preferential pricing to apple, which means its not exactly as amazing for as we thought. The second thing is we cant deny apple is still working on creating its own inhouse modem chips as well. It may not be there today which is why it still needs to use qualcomms chips for the next three years, but its on that trajectory. So what does that mean for qualcomm two years from now or three years, 2026 . When it loses its largest customer. And i know its been pivoting. But still hasnt apple been making its own chips for computers . Yes. For some time. Quite some time. I know steve can weigh in on a lot of this. But specifically for 5g modems and the chips that are used for wifi, all that. Qualcomm and apple have been fighting for years. And then in 2019 apple bought intels modem chip business. So that it could create its own chips. And you would think at this point in 2019 to 2023 it would be up to par. But it hasnt been up to par. The apple production, the modem chips. With its core processors thats a different story. Apples done very well. Which is why they put those core processors into the macs and they pushed out intel when it comes to the actual computers. Steve, you want to jump in here, explain this to me . Exactly. The timing of this is just perfect for qualcomm and not so great for apple. Its proving 24 hours before we see these new iphones you have qualcomm effectively coming out and saying hey, tomorrows iphone 15, thats going to be powered by qualcomm technology, and not just that. The 16, 17, and 18 iphones are also going to be covered by that technology too. And it just proves that this is a harder business than maybe even apple thought it was going to be. We were talking all day about this. But four years ago they went out and spent a billion dollars on intels modem patents to basically make that a foundation so they can create their own modem, divorce intel from qualcomm basically they have to pay qualcomm a few bucks for every phone they sell on top of the costs of the components. That whole legal battle between these two companies was over that licensing fee. Apple was projected basically they cant win that case, and they had that settlement. And now at four years later here we are. They have not been able to figure out how to make a modem thats on par with qualcomms. So theyre basically forced to go back to qualcomm and sign this deal. Its not often that steve and i get to be on the same panel. And i think this speaks to the greater theme were seeing within the ai software chip world, is the lines have been blurred. So you have apple creating its own chips. We talk about nvidia all the time with ai chips. You also have meta working on their own version, google working on their own version. And more and more oracle working on upgrading to provide cloud. Everybody is just trying to create and offer their own chips and their own software. So it really blurs the lines. And i bring this up because it is going to be competition for a lot of these names. If apples successful in creating those modem chips in just two years, goodbye 20 of qualcomms revenue stream, which they already are aware and theyre working on focusing oontdroid market. But thats still they want to become more vertically integrated. Thats the push. Thats what amazons been able to do so successfully is take every line item on the Balance Sheet and turn it as i see the trucks going around. Steve, well just leave it with give us a couple of things youre thinking about on the eve of their big unveil tomorrow. The big one is going to be whether or not this price increase actually happens that weve been talking about the last couple of weeks. Analysts are just predicting that the pro line of iphones are going to cost about 100 bucks more. Kelly, that means a starting price of 1,100. And not just that. Theres going to be some real demonstration of how regulation is impacting apple. They are expected to change the plug at the bottom of the phone from that lightning connector weve been used to using for over a decade now to the standard usbc connector that you see in android phones and so many other gadgets. This is because of regulation in the European Union saying new devices coming out 2024 and beyond need to have that standardized plug, basically forcing apple to make this change in its hardware. So regulation really playing a part in tomorrows announcement too, kelly. Trying to figure out if i already have would i have it . I think i have whatever last years phone was, steve. Yeah, you have the newer stuff and its going to go back no, thats the old connector. Thats why im not talking. This is the lightning connector . Thats the lightning. And thats going to be replaced. So get ready. If you buy a new phone exactly. Its going to go back to youre good. You know, i have a drawer in the kitchen and it has all these what are the squares that go in the wall . And then it has all these cords for all the different and i have to every time im charging something, i have to figure out which i agree. Which thing goes into and then i bought annual electric toothbrush because ours died. And it also doesnt come with the plug. I have to find a brick to plug it into the wall. Well, 1100. Are you going to be worrying about this next year . At that price point the fact that were talking about the cords after all the technological revolutions that the world has seen is unbelievable. Steve, thanks for now. Ill do some more research for tomorrow. Kristina partsinevelos, steve kovac, thank you both. Further ahead, tax me if you can. The irs deploying an aidriven army to catch wealthy x ta cheats, and weve got full details when power lunch returns. A little trouble, youre concerned that its going to cost you money. To this day i only paid what i had to pay for the device. When i go back everything is covered. Theres so much youre missing by not having hearing aids. well find you a hearing aid that fits your lifestyle and budget. Unlock your riskfree trial during our limitedtime sounds of autumn event. Call 1800miracle to book your appointment today. Your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire i wouldnt have my business if it wasnt for my website. Once i decided to go with godaddy, the process was seamless. I was able to create my website on my own. To have it be exactly what i want it to be. Be able to integrate my appointment app. Godaddy was able to provide everything that i needed. The whole image of who i am and what empire is is presented through my godaddy website. Only at vanguard, youre more than just an investor, youre an owner. Is presented through my godaddy website. Our Financial Planning tools and advice can help you prepare for todays longer retirement. Hi mom. Thats the value of ownership. Meet gold bond healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. With 7 moisturizers and 3 vitamins, you can pay more but you cant get more. Gold bond. Champion your skin. Wlfrnlths to power lunch. Lets check in on oil. Obviously moving a lot to the up side lately. How did we close today . Pippa stevens has more. Not doing a lot after that big week we saw last week and ahead of wednesdays cpi report. Were kind of in wait and see mode here. But it does feel like as rbc noted the floor has been lifted for oil prices. And so you know, while positioning is now getting more bullish and we saw the latest cftc data showing investors are increasing their long positions after the big run weve seen in oil we could see a pullback here. But it seems like Going Forward those lows well see higher lows looking forward. Chinas still a wild card here of course. But one area to keep watching, i know i keep saying it but the refiners, they are lower now, but earlier today Marathon Petroleum did hit another record high. Phillips 66 did hit i fiveyear high. It really is that strong product demand that does continue to drive prices here. Does that mean the gap what were paying for gasoline is actually structurally higher than where the oil price is right now . Yeah, the crack spread is sitting around 40 for the refiners on the 321 crack. That basically means theyre going to keep the rates very high because they are earning such a good profit on that. At one point crack spreads were negative. So 40 is awesome as john kilduff once told me that looks very strong. Utilization rates are very high. Theyll keep buying oil, not the support prices. Pippa, thank you. Lets go to Bertha Coombs for a cnbc news update. Tyler, Pennsylvania State police are sending a warning today to anyone who may be helping an escaped convicted murderer evade authorities. Since his escape from a pennsylvania prison 12 days ago. It comes as police shift their search radius for Danelo Cavalcante after they say he stole a dairy delivery truck this weekend and tried to reach out to former work acquaintances. The reward for information now up to 25,000. A u. S. State Department Official says the u. S. Will closely monitor the upcoming meeting between russian president Vladimir Putin and north Korean Leader kim jong un. Kim reportedly set off for russia today on a special armored train. U. S. Officials have warned the two countries are in talks about a potential arms deal to help russia in its war with ukraine. And the star wars relic is up for auction. A model of an xwing fighter used in the filming of a battle scene in a new hope was thought to be lost. But it turned up as part of a collection of an oscarnominated model maker after he died. The starting bid set at 400,000. May the force be with you on that. Very good. Bertha, thank you very much. Lets go to Contessa Brewer now for a market flash on mgm. Contessa. Mgm resorts is dealing with a major cybersecurity event that has caused systemwide outages everything from reservations and bookings to company email. The Company Confirms the incident, says it has brought in external cybersecurity experts and notified law enforcement. A hotel guest staying at the aria told me in the last hour that hes seen some slot mag machines offline. We cant confirm thats the result of the cyber issue. I have reached out to the company to asking ask about the gaming systems. A spokesman for mgm tells me gaming is continuing without computers. Were monitoring the reports on social media about all the ways this incident has disrupted business as usual. Atms, credit card payments at restaurants and the like. The company im told is working to get those systems back up and running. As you can see the stock off a percent and a half well keep you updated tyler. No idea, no information on what the origin of this outage would be or whether it could have resulted from a hack. Not yet. But we do know in 2019 mgm had a major data breach that revealed the information of millions and millions of customers. And now this one on the top of it. Cybersecurity very important in this industry. By the way, side note, im told that bet mgm, the Gaming Platform that you can get to on your phone, has not been affected because that runs on a completely separate system from mgm resorts. All right. Thank you very much. Contessa brewer reporting. And ahead on power lunch, there goes the job market. The feds effort to cool the economy seems finally to be hitting labor. Up next, well explain why restaurants are focusing on suburbs for both workers and customers. More on that next. bobby my store and my Design Business . Were exploding. But my old internet, was not letting me run the show. So, we switched to Verizon Business internet. They have business grade internet, nationwide. vo make the switch. Its your business. Its your verizon. Hi, im jason. Ive lost 228 pounds on golo. So when my doctor told me i needed weight loss surgery, i knew i had to make a change. Golos helped me transition to a healthier, sustainable lifestyle. Im so surprised just how crazy my metabolism has fired up. I have a trust in golo cause i know it works. Golo isnt like every other program out there, and im living proof of it. announcer change your life at golo. Com. Thats golo. Com. Chipotle, tocata to sweet greene, theyve all seen a focus on the suburbs in recent years. I love to hear it. We want more of it, kate rogers. What can you tell us . Hey, kelly. Some of those major chains as you mentioned looking to the suburbs for their next major wave of growth, seeing not only a Stable Customer growth due to changing migration patterns during the pandemic but also a different labor pool. Names like sweet green and cava as you mentioned have pointed to the burbs for expansion plans in recent years allowing access to customers thinking beyond the Typical Office lunch rush and instead to dinner. But some companies are also seeing different labor patterns there. Coffee chain bluestone lane says its looking to suburban expansion for its four new restaurants this year, adding that hiring has been more successful in locations outside of major cities. Take a listen to ceo nicholas stone. Were seeing a dramatically lower amount of turnover in suburban locations versus inner urban. And i think thats primarily driven by cost of living pressures. That the challenge of young people that are working in the Hospitality Industry or Retail Industry is pronounced in inner city areas. Chipotles chief restaurant officer Scott Boatwright also telling me in conversation that theyre seeing alltime high retention at the company right now but seeing slightly Higher Turnover in larger metros like manhattan, again, because of the cost of living there versus suburban markets. Just an interesting trend there. Quite a few chains are noticing, kelly. Back over to you. Thank you very much, kate. Lets broaden out our conversation now to the wider labor market. Recent data suggests the postpandemic hiring boom may be coming to an end with both job openings and job growth slowing in recent months. Unemployment also ticked up slightly in august to 3. 8 from 3. 5 but still within what were calling the goldilocks zone. For more on Employment Trends and whats behind the cooldown lets turn to tom gimble, Network Founder and ceo. Tom, welcome back. Good to have you with us. Good to be with you, tyler. What is causing the slowdown . Is it as simple as the fed . Yeah. Companies have to plan for year end, for next year. We have an Election Year coming next year. And the good times dont last forever. I think whats happened with the fed is while the economy is still showing that its unbelievably resilient in the employment sector, its still something that gives leadership and ceos a sense of i dont want to go too fast. So where have the cutbacks, to the extent that there have been cutbacks in employment, are they mostly Big Companies and are smaller and Midsize Companies still hiring at a brisk pace . Thats exactly right. Politicians for years have said small and medium size businesses are the economic engines of this country. And i think thats true no matter what party youre in. And when you look at whats happened in Big Companies where you see the layoffs, microsoft and google and meta, you know, those companies hired way too much and way too fast during the pandemic and coming out of the pandemic. And now that thats in our Rearview Mirror and were looking at this, those people are either doing startups or going to work for small to medium size businesses. And ive said before, tyler, is it used to be if you were in an industry 30 years ago you were kind of pigeonholed. Today skills are much more transferrable as well as geographic location. So its really a different market than weve ever seen before. Its really interesting, tom. Lets kind of pivot to talk about maybe the most hotbutton issue in the workplace right now, which is work from home. Its disappearance. And the leverage with which employers versus employees have the upper hand. What are you kind of picking up about the satisfaction people have with their work from home arrangements . Well, i think the employees who have it and they like it for whatever reason is good for them when they were allowed to have it. But times change. I was talking to a client the other day, they were asking me what the rules were for the definition of work from home and what it used to be was if you work remotely you still had to have daycare or childcare for your children. Otherwise, it wasnt the same as legitimately working. And when you have people who say today they cant get childcare during the main hours of the day, they were kind of double dipping, that how can you be giving full attention to your job and being a stay at home parent simultaneously . Those are both really fulltime jobs if youre going to do it. Thats why you have daycare its called cartoons. You put them in front of the ipad. I can crank out three to four hours of work. I dont know what its like now. My kids are 19, 21, and 23, kelly. But we had technology, we had tvs, and ill tell you, they were still climbing up my leg and slapping me in the face when they had the opportunity. So its easier said than done. And i think what weve got to look at holistically is working from home and working remote is why were doing this and what the situation and the problem is with the employeremployee relationship. And what weve had is the power shouldnt be in one side or the other. The power is going to be a supply and demand model. And thats always the way its been and its the way it always will be. When theres greater supply it drives it down. When theres less supply, it drivers it up. Meaning wages. And thats just what the Capitalistic Society is. And for too long weve been trying to make it about geographic region. I had a client today, this morning talk to me and say i had employees that relocated to california during the pandemic and i didnt realize that california has different wage laws than the other states and we realized that we were breaking the law by not paying them a certain way. Well, welcome to the new world. And so theres a lot of things that are out there. Should the employer be penalized for that, because an employee roguely moved to a new location . I dont know. But it doesnt seem fair and weve got to navigate these waters together. Very quickly, where has the hiring slowed the most and where does it remain the most robust . Well, the most robust that we continue to see is technology. And when i say that i dont mean tech firms. I mean security experts. I mean Cloud Infrastructure folks. I mean people that are implementing new software and e. R. P. Like workday and salesforce and s. A. P. Type programs. Those types of roles continue to be top of mind. Where weve seen a little bit of slowdown, and thats on the sales hiring. And when i say that its a little bit concerning because when companies are dumping money into salesforces, that means that theyre seeing an opportunity to keep growing. Its not dry yet, tyler, but its not as robust as it was a year ago. Tom gimble, thanks. As always. We appreciate your time today. Good to be with you. Cbaup next, the irs is using ai toomt tax cheaters. Weve got details when we come right back. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. I did have hearing aids from another company. I was just frustrated. I almost gave up. With miracleear its all about service. Theyre personable. Theyre friendly. Im very happy with them. We provide you with a free lifetime of aftercare. Meaning free checkups, cleanings, and adjustments. I see someone new. Someone happy. Its really made a difference. Hear the world better during our limited time sounds of autumn event. Call 1800miracle to test drive our hearing aids risk free. Welcome back. The irs has used its billions in new congressional funding in an interesting way. They have a battery of new ai tools and they are launching a new crackdown on the wealthiest tax evaders. Robert frank is here to discuss those details. The new irs commissioner, his goal here was first lets use all this money to help the service part of our business, help people who, you know, want help paying their taxes, understanding what they need to do. Now were at phase 2, which is go after wealthy tax cheats. And what theyre doing is putting a lot of that money, number one, to enforcers. Theyre going to hire tens of thousands of auditors and enforcers. But number two is develop ai Machine Learning to figure out what patterns they can find in tax returns, especially for these large partnerships that can help them identify where people are hiding their income. And thats where an agency not known for its Technological Prowess is going to really make a step change. And i think this is a part where ai really can do some good because ai is great at these massive data questions and huge Computing Power and applying that to finding the areas where humans didnt really see the patterns before but ai can. We just had a little counter on that said it was going to target 1500 millionaires with tax i think it was tax debt of 250 thats right. So one of the parts of this is theyre going after 1600 people who have a million or more in income, who have recognized tax debt, in other words, we know known. Known and acknowledged by the taxpayer that they owe at least 250,000. 250,000, excuse me. 250,000. And this could raise hundreds of millions of dollars if they return all that. You and i would say how can they get away with this already . The irs just didnt have the staff to go after them legally and get this money back. So thats phase 1. Phase 2 would be the ai learning. And phase 3 theyre going after the 75 largest partnerships. Thats a lot of hedge funds and law firms. And look at how are they because theyre very complex returns. Ai is going to help them sift through all that and narrow in on where theyre underreporting income or avoiding taxes. I suppose this is kind of situational dependent. But if im being accused, you wonder if you can kind of come back and say oh, no, no, the ais got it wrong. Or if the things that theyre highlighting are so obvious that theyre just saving the time of a worker to kind of take weeks to come to the same conclusion. Its exactly the second thing. Its finding which returns to pick out of those 100 million returns that will be the ones that will yield you most likely the greatest result. Its still going to take a human to look at it and say ah, theres a problem. But ai will sift through it and say here are the ones that are most likely going to be a problem. And then the human being will take a look and say oh, yeah, we see 10 million in income that wasnt there before, where did it come from . Are these initiatives politically sensitive or politically contentious . Everything is politically sensitive and contentious. Absolutely. But there were objections to the idea that the irs was going to bring in, quote, jackbooted exactly. Whatever. Exactly. On the one side you say for every dollar the irs now spends on enforcement they get 12 back in collections. Thats hard to argue with from any political point of view. This is money that will yield a great return in terms of tax collection especially if you go after the wealthy, which pay the most texts and avoid the most taxes. On the other side, to kellys point, there will be a lot of Small Businesses and some large partnerships that dont do anything wrong that spend hundreds of hours and lots of money to battle something only to prove that they dont owe much or havent done anything wrong. So the cost to American Society in terms of hours spent, advisers, tax lawyers, this will be a big boon for the accountants and tax lawyers who have to fight all this stuff. Weve truly never been at a point like this before. Robert, thanks. Thanks, guys. Still to come, a twinkie promise. J. M. Smucker scooping up Hostess Brands for more than 5 billion. Thats the icing on the cake there. We will trade that and other key movers in three stocluh xt. Nc please dont go by harry casey, Richard Raymond finch ping please dont go please dont go please dont go please dont go dont goooooo dont go away please dont go welcome back, everybody. It is time for three stock lunch. We are going to start with tesla. Adam jonas raises his price target to 400, a new street high. Jonah siding the new Machine Learning supercomputer as a reason. Lets trade this name and a couple of more with victoria green. A big fan of the jonas brothers. What do you think of tesla . Tesla is a buy for me. You need to look at it like a technology and not automotive stock. It is considered one of the most polarizing names on the street with a 268 average target. If you look at it like Legacy Automotive it is because they say look at it versus gm, ford and Legacy Automotives. If you look at it as a moonshot as the way Morgan Stanley is looking at it then it is a buy. You need to be able to take the volatility and realize if they dont get both stock by the end of the year is going to be really hard to justify. It is a bet on elon coming through. We have an interesting interview coming up tomorrow. Walter isaacson, youve seen all the hype. I think its going to meet that. He will be on squawk box tomorrow. In the meantime lets talk smokers. Shares are down after the announcement to acquire hostess. A lot of investors are worrying that they are overpaying. Do you like this . They are divesting some brands that were slow and revitalizing consumer foods. Consumer foods for them have not worked at all. The jams and jellies have been stuck with slow growth. This will revitalize the growth. It has been growing 1520 per year. We snack so much. According to nih at least 90 of us snack one2 times per day. Who doesnt love twinkies . I actually like this acquisition. Lets move down to alibaba shares down since the stepped out of the ceo. What you think about one . For me it is a sale. They are looking at breaking up into six separate units. He was ahead of the cloud division. This shows that maybe the breakup is going to be a little more difficult. They have a postpone ipo in hong kong. They are trying to unlock the separate lines of business. For me id rather than on the sidelines and figure out which bits and pieces i do want to own. Anytime a company is going through a huge reorganization and you have turnovers after only two months you have to raise eyebrows on corporate governance. I just cant touch the stock right here right now. Victoria green, we thank you as always. U adney tuned, more helis yoneed to know including a xbox credit card on closing time after the break. sirens [due at target in 5 ] copy that. Make a hard left down the alley. Networks got you covered. [please confirm requesting backup. ] changing route. Go. Roadblock ahead. Back up, back up. Reverse reverse next level moments, were 30 seconds out. Need the next level network. [north corridor, hurry ] coming through or 3, lets go. The network more businesses choose. Transplant received. At t business. Im hearing different ways for me to screen for colon cancer. Its time to use my voice, ive got a choice, more than one answer. I sat down with my doc. We had a talk. Knew just what to say. I asked for cologuard and did it my way. Cologuard is a oneofa kind way to screen for colon cancer thats effective and noninvasive. Its for people 45 plus at average risk, not high risk. False positive and negative results may occur. Ask your provider for cologuard. I did it my way weve got about three and half minutes left and a bunch more stories you need to know about. Lets start with shares up north in which bell shortly sharply. Lets bring in morgan with more. Those concerns following a big run last year. Northrop grumman half the Space Business that is the largest in the world. The portfolio as it exists is just three years old. It is the combination that 20 companies brought together over time. I spoke with the ceo catherine warren. We are focused on being at the top of technology and that has led us to grow very rapidly. What we see today is a broad variety of applications. National security will remain a record. There are applications in civil and commercial and we look to leverage that quite broadly. 85 of the Space Business is National Security focused and much of it classified. Plus the interceptors for homeland missile defense. Northrop grumman also works for commercial customers. And for nasa everything from the James Webb Space Telescope to the cygnus cargo capsule currently attached to the International Space station. Guys, they literally bring ice cream to the astronauts. I dont mean freezedried ice cream that you are getting in the museum gift shop. We have a lot more from my exclusive interview coming up on overtime for 00 p. M. Eastern. There was a lot of hope this year that between the war and Everything Else going on with the economy you could say they were a place to hide. They are still down about 1 2 . I have to pick up a cargo pod like one of the ones you see in peoples backyards. We have to mentioned the ipo news of the day. With instacart kicking off officially we are getting info, looking to sell the stock 26 20 per share. The valuation below 39 billion in 2021 and what they thought they were worth internally. Interesting how that one has come down. The reality of this market for public investors if your first chance is now i would rather have an a billiondollar evaluation than 100 going back to the famous uber comparison. Xbox to launch the xbox master card issued by barclays. It will not have an annual fee and rewards xbox players card points on qualifying purchases. This will be very appealing. This is very clever and i think it could have broad appeal. A great interview with sarah earlier. The ceo was talking about that. Maybe we will see more. Enjoy the rest of the day and thanks for watching power lunch. And i will say good luck to the bills. Closing bell starts right now. Welcome to closing bell. This make or break hour begins with stocks recapturing close to half of last weeks losses as buyers reach for those amelia growth stock. The s p 500 going back to is moving average after the path was clear as treasury yields hover above recent highs. That is ahead of the big apple iphone launch and cpi report. And find out why