Have created a more cautious consumer billionaire tilman will tell us what that means for his business power lunch starts rite now. Wall street starting to trade like a tech stock hitting a record as it gets set to launch its competitor and gears up for a deal to by tiktok zoom up after 40 . Invest rs continue to pile into these momentum names more on the markets and high its hard out there, send it over to bob. Yesterday he sort of threw in the town he said theres no precedent to how high valuations can go with low rates and unlimited q e. John also wu drew his price target these are veterans having a hard time to figure out how to put unlimbed fed support recessions would happen when the fed withdrew the support what does it mean . One of the thing s the bare arguments dont have much traction now the fed will keep stimulating and the Global Economy is slowly pivoting higher and the earnings are too conservative this happened in the Second Quarter and they are saying it again. For 2020, were dealing with about 130 for the estimate for the s p 500. 2021, the estimate is 166. The bulls are saying this is too low. No stock sums up this phase of fomo momo, fear of missing out on momentum than zoom video. The stock is up 37 today. 550 this year even though we know were using zooming, it still blew past expectations i dont know if you saw it, it was an analyst note that used fomo and momo and tima zoom, not only did it blow past expectations, it beat the most optimistic wall street projections. It brought in more revenue than it did in all of last year i could go on. Ill mention one more great stat from our cnbc market muse. Take a listen to this. Zooms market cap gain this year is more than 100 billion. Only 7 s p 500 company vs seen greater gains in 2020. They are amazon, microsoft, facebook, nvidia and paypal. Zoom is in good company. All of those companies i just mentioned have diversified their businesses over the years from amazon in grocery to apple in services or paypal with venmo. Zoom is still known for video conferences. Some investors are starting to ask what is next to sustain its ever climbing valuation. Call it the cult of zoom you mentioned it shares are up nearly 40 today nearly 600 in 2020. Guy, i remember it like it was yesterday. It was just about year ago that this company went public at a 9. 2 billion valuation at the time, even that was considered pretty rich you remember not to throw you a question out of left field but beyond meat surging 800 its off those levels. I think its down 44 from those all time highs they couldnt sustain those levels and thats a business with one product just like zoom just sort of has Video Conferencing what makes i venvestors think t zoom will be different it almost feels like the beyond meat 2019. I think zoom participates in this incredible work from home trend. Its become a verb in a sense its a diversified not just into enterprise this was a consumer First Company in a lot of ways now into Remote Learning on the analyst call last night, one analyst actually brought on his daughter to say why she liked the feature so much when she was doing Remote Learning through her school its one reason that work from home trend the other one is its been able to maintain its market share with some of the tech giants nipping on its heels facebook, microsoft, google have tried copy cat products and zoom has kept its dominance it is working on new products such as a 600 device. Zoom telephone well see how those go but investors have their eye on it its become something of a verb this year thank you. Its also a noun in the sense of zoom tails. We used to get together to have zoom tails with our friends. With the bulls driving this ship and chasing stocks like zoom, will the fear of missing out on momentum continue to push the market even higher well, we really havent seen any crack in this momentum move. We havent seen even just the slightest hesitancy of the momentum stocks starting to slow down they are continuing to get higher away from their 50day and 100 Day Moving Average they continue to be leader not only in august which is lower volume but back in july. Until i see some sort of argument that there is going to be some sort of leadership elsewhere, i think you should run with it. Dont fight it there are a lot of Good Companies that, less risky than a zoom that still work well within the momentum space. Particularly your semiconductors, amd, intel all very strong Balance Sheets very good strong Earnings Growth looking ahead. I think these are safe bets with momentum world as long as were within this tina environment, i think going large cap momentum is actually one of your safer spends even though i agree with all of the cases that bob laid out for the bear market and the concerns i say run with it. Keep those stocks on board david, erin makes a convincing case to go the flow what do you say . We really would like to be more constructive on this market it doesnt make sense to us. You see cyclicals lead we asheaved beating that bar its going to take a sustainable treatment to get us there. Small caps and cyclicals leading will give us a lot more comfort about the sustainability of this advance. You seem concern the market has become disconnected from the economy. I picked up on erins point suggesting there are certain Great Companies that are leading not only the economy of today but the economy of tomorrow. We have learned what they are over the past year, over the past six months through this pandemic that part of the economy is healthy. It makes sense that the faangs, the googles and facebooks and amazons are trading the way they are because they are producing great Earnings Growth. If you take the broad market and take the five stocks out, were down year to date. The median stock is down year to date what does that tell you . This is not broad based. Again, we need to see the smaller companies. We need to see the cyclicals the companies that are hurting now. We need to see them come back and thats not going to happen until consumers reengage in the economy. Erin, you get the word last here and address davids very poignant point that the average stock is lorwer and not higher theres stocks that have been winners but have really strong Balance Sheets i think zoom is a little too risky. Thats what im talking about. Amazon, google, your semiconductors Strong Companies that have this momentum as long as were in this environment, go with it right now, i dont see other alternatives just yet. Im not talking pure growth. Im talking about momentum erin, nice to see you again you have some lovely art in the background thanks for having us into what i assume is your home. Daif david, thank you as well tyler never one to miss a good backdrop. Walmart hitting the dow higher shaping up to be the next text giant as it looks to by tiktok and launches its new service to compete with amazon prime. Mcdonalds facing a new lawsuit from 52 black former franchise owners this is the third Racial Discrimination suit filed against the fast food chient th giant this year. The lawyer representing them right afr is teth we made usaa insurance for veterans like liz and mike. When their growing family meant growing expenses, our agents helped make saving on insurance easy usaa. What youre made of, were made for. Usaa our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Welcome back mcdonalds already facing an ugly lawsuit with its former ceo getting sued by some franchisees. A group of black franchise owners alleges discrimination. Kate rogers joins us with what they are alleging mcdonalds did and did not do kate reporter thats right. This group collectively represents more than 200 mcdonalds locations and claim the giant sent them on a financial Suicide Mission by steering plaintiffs to locations with low volume sales and higher operating costs including curt costs due to crime denying support to allow them to overcome financial hardships while supporting white franchisees with rent relief and impact funding dropping overall total plaintiff revenues mcdonalds that is in the midst of its ousted ceo said the company categorically denies these alleges adding that mcdonalds does not place franchises into locations but may suggest locations to them. Adding cash flow for black franchisees han s has been imprg the overall representation of black operators is broadly unchanged according to mcdonalds back over to you kate, stick around. We want to bring in the man representing the 52 black former franchise owners suing mcdonalds jim, thanks for being with us. Youve said that revenue at mcdonalds is based on one factor and one factor only, location do the franchise owners not have any say in where their business will be located . Walk me through that process they have little to know say in that process. You have to look at the history of mcdonalds. In 1969, blacks had to revolt to get their first franchise. Grudgingly after that, mcdonalds start to give some franchises to blacks where they decide to give them. They were primarily in black neighborhoods, low income neighborhoods, ghetto, tough areas. Over the next decade and a half, it became imperative that was a problem. Blacks approach mcdonalds through the National Black mcdonalds Owners Association with these beefs mcdomgnalds in the 90s, acknowledged these problems. They enter into an agreement in 1998 there were 377 black nan fr franchisees that owns. Today theres 186. Thats been cut in half over the last 22 years. At the same time, the number of franchises worldwide for mcdonalds has more than doubles, if almost tripled jim is this an example, in your estimation, that the cooperation is out of touch or do you just think they are doing enough we know the ceo has said to jim cramer the company has probably created more millionaires than on the planet. We know that black customers make up one fifth of the chains u. S. Revenue. Are they out of touch or just need to do more they are either out of touch or its false. When they made that statement it was june it was on mad money with cramer i saw that two weeks before that i had given them a draft of the complaint. They are aware of that think about that statement in the history of mcdonalds, maybe been a total of 600 black franchisees and to say they made more black millionaires than probably any company on the planet is false. Think of nba, nfl, nn the Dallas Cowboys made more black millionaires than mcdonalds thats false statement on bloomberg, the ceo, same ceo who came into office in november said they had decades long history. Five decades of doing the right thing. What i just talked about is well documented they announced the agreement and acknowledge their problems they did nothing than decrease the black numbers over the last 22 years talk to us about the damages youre seeking for the pla plaintiffs in the release you say between 4 and 5 Million Dollar per location how did you arrive at that number its fairly simple. At the relevant time period our people exited in the last decade. In revenue its only based on location in mcdonalds its not a french restaurant you want a big mac, you go to the closest mcdonalds thats how it works. What happens to that 700,000 the average life of the stores in our case is over ten years. The 700,000 is the last revenue. Thats the beyond break even refr kn revenue. Thats the revenue beyond 10 Million Dollar the cost of sales is 28 im being generous and up to 40 . Maybe some expenses went up. If you are generous and take 40 out, youre left with 50 which is shortfall of profit for year. Over ten years for one store thats over 4 million we have other components of damages too which is lost of investment value, debt that should not have existed at the termination date and things of that nature. The predom nants claim for damages would be lost profits. Well have to lever it here one to watch as mcdonalds deals with this but quite a few hr issues at the moment thank you both thank you very much all right. Still ahead, the dow off the high ofs of the session but walt is leading the charge up 5 as it launch a new Subscription Service to take on amazon. We have those details and more if its tuesday, its time for tilman he says he has just had his best week of business since the pandemic started hell tell us whats still keeping him up at night like e more power lunch after this. Right now, the worst place to be is stuck inbetween. Accelerate your investments or pull back . Change the plan or stay the course . Thats why Northern Trust is here. With specialized expertise. A history of success through every economic climate. And proven strategies rooted in data and analytics. Giving you more control. Clarity. And confidence. For now and whatevers next Northern Trust wealth management. At morgan stanley, a global collective of thought leaders offers investors a broader view. We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. Welcome back to power lunch. Walmart ripping higher after announcing the launch of its Membership Program the stock up nearly 13 over the past week after the company also said it was teaming up with microsoft to buy the u. S. Operations of chinese social media platform tiktok. Those gains for walmart stills pales in comparison of amazon which is up 90 this year. Which company is a better bet . A lot of debate. What do you make of the ceo trying to push into tech whether its this ecommerce play or potential acquisition of tiktok i like what they are doing to expand what they have been known for for all of these years the idea of them being this competitor to amazon is a little stretched. The premare reason is amazon doesnt sort its own products from its own manufacturing just its own product line. They source it from all over place. Entrepreneurs can send things to their warehouses you can literally get anything on amazon. Com. Thats not the case yet with walmart. We continue to favor amazon. Walmart is pretty attractive trading 25 times forward and. 72 priced to sales and relatively yell thi Balance Sheet i think you should own both. I think you get a pretty good bang for the buck. Todd what do you think yeah, its been impressive. As youve said they have been busy with announcement tomorrow of microsoft on tiktok the chart is performing well we do own both there has been a significant unperformance of walmart compared to amazon looking at walmart plus its more of a grocery play decided to ship food from existing locations. I think its winnable in the short term longer term it could be tough running for them amazon is new to this. They just opened their first door inhills they are launching their food effort they have a lot of advantages in the long run with alexa, Voice Technology for ordering and the return of physical merchandise from Main Business in the fresh location they are both doing well yeah, dont call walmart out. Todd and quinn, thank you. For more trading nation head to our website or follow us on twitter. Back to you. Thank you. Still ahead, its time for our weekly special check in on the state of the economy and Restaurant Business with landrys chairman why he thinks business could take another hit this fall well be right back. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. Welcome backseat, everybody. Im sue herrera. Facebook taking down a Russian Network of face accounts seeking to influence left leaning voters in tus and he u. S. And britain. They hired unwittingly journalist to write the story on its behalf kenneth walker, the boyfriend of Breonna Taylor has filed a lawsuit. He was shot five times by police in which taylor was shot to death. Supporting School Reopenings will be one of the Top Priorities in distributing rapid covid 19 tests a top official says the vast majority of those test will be targeted at school and other critical institutions. President trump physician denying report has the president had experienced a stroke or a series of strokes. The doctor says the president remains healthy. You are up to date thats our news update this hour back to you. Thank you. Looks like americans are saving more and spending less thats what we found in a new cnbc and acorns invest in you survey when we settle to learn how the pandemic is shopliifting our relationship with money. 46 of the 5400 people we polled describe themselves as more of a saver. Thats roughly the same across age and racial groups. When we asked about monthly spending over the past year, a small number, only 13 said they monthly spending as gone up. Almost half say they have decreased their spending with the top reason being concern about the current economic situation. 53 of respon dents listed that worry a little more than a quartzer lost the source of income and 16 sited fear of another stock market downturn as the reason they decrease their spending of those who said their spending increase half sited the higher cost of essentials and