Welcome, steve speaking of inflation, julys cpi report showing an increase, less than expected dow up 455 points before just now turning negative s p now down 7 points. Nasdaq down 21 by the way, these losses come after that weak 30year bond option talked about top of last hour sent the tenyear yield back above 10 pressure from that direction and positive earning movers. Holding up the dow now, mixed result plagued by streaming woes restructuring costs and 7. 5 surscriber loss nearly shares up 4. 5 planning to crack down on password sharing like netflix. Alibaba up 4 . Chinese tech giant beating top and bottom line. And lululemon massive hike to guidance keeping up with the growing theme this week, another big deal Luxury Company tapestry announcing requiring versace and jimmy choo for about 3. 5 billion. More on that later in the show. Start with a key read on the economy and the health of the consumer todays cpi coming in just a touch below expectations with year over year rate climbing by 3. 2 the headline and takeout food and energy, 4. 7 a little stickier right there. The economists cheer momentum with a threemonth annualized rate dropping to 19. Headline 3s1. Fed winning its fight to bring down inflation keeping unemployment rate, well, actually down over the past year outright price declines in new or used cars, airlines and fares, and food, not as bad and housing costs kicked up. Talk about it with chief Investment Officer at Richard Bernstein advisor and chief economist at moodys dan, quick, news of the hour any idea why the market turn has been i know light volume, summertime most people, a lot of people at the beach where they can still be trading, i guess. The question, whether or not how sensitive stocks are now to the bond market . Stocks sensitive to everything now look at it, whats driven a lot of this market, clearly some improvement in the economy data youre well aware of, steve. Beyond that, its been improving Investor Sentiment and liquidity. I think that story is long in and everybody capitulating the market these valuations, positioning, meant doesnt take a lot to get the market back. Seldom news pricing in lower inflation and less fed and now the market has reason to say, okay that process, priced that in already. Maybe what news . I guess thats the bigger question really, came in basically in line with expectations. Right. And kind of what you would expect i think we have one more cpr report what do you make of this not much a. Good question to throw to our other guest more news than meets the eye is the headline, core, what they appear to be i think news is that inflation is medde edheaded in t direction. H headlines look good. Month over month expectation is darn good. Key number is that 30 annualized the last three months feels like everythings moving in the right direction the news we are on track to getting inflation back to the best target in a reasonable amount of time. Mark, disappoint me nerd that you are. Thought out to the hundredth with me on this really. 16 rounding down to. 1 and by the way, thats two months in a row been in that. 16 barely rounded up to. 2 i guess my question is, is there more juice in this decline than were seeing play devils advocate i dont know well get another 8 month on month dedplin airline fares again. Energy reverse itself. Is this about the moment you see reason to believe its going to be coming down even more no. More juice vehicle prices will decline more we might see a little hiccup here depending on uaw strike, if theres a strike less production meaning prices wont come up as fast as im anticipating barring that, supply chains normalized, picking up in japan lower vehicle prices important thing is that the growth in the cost of Housing Services is going to slow. We can forecast this with a high degree of confidence, because tied directly to market rents. Observe the market rents flat to down the last six, nine months by construction, the next 6, 9, 12 months getting a moderation you know, in cpi, Consumer Price index, about a third of the index. A big deal less of a deal in the Consumer Expenditure deflator cpe, but fed looks at that and says, monetary policy. Nonetheless, one last thing throw in the mix electricity prices coming in expect more. Gas prices, fuel stock for point out, for the record, housing costs kicked up. This one, in the last few days dan, whats the next catalyst . People need to get back from the beach . Or more here looks like the market kind of gave a yawn at this Quarterly Earnings report. I guess were a little better than expected. Not a lot better than expected whats the next stinger that the market trades on fear of an october Government Shutdown yeah. Big thing will come back to earnings clearly, you can get an edge on what earnings will do. Based on macro data. Whether its a big macro report like the isms or tmis, earnings itself just, critical things basically we are at our near Inflection Point in earnings coming up on profit and earnings, its tough mixed signals. Base case, things get better, seeing positive signs but plenty of stuff out there mark talked about in the past that can really dampen this recovery. Itg consumer trends, its the lack of big pickup in the goods side of the economy, or its lack of pricing power. Earnings revenue growth, s p basically zero. Right. If you have dont get that pickup that operating reserve latch i worry were priced too much for protection everybody on one side of the ship that was the ship that had the ship kind of turning over. Right . Have a recession now back to the middle maybe i should notice throw this to mark. Mark, talk about the outlet for the economy, recession seems to be off the table should it be entirely off the table . Obv obviously, theres a given percentage probability in any year theres going to be rece recession. Still a higher than normal probability . Indeed there is you know, steve, ive been generally optimistic about the economys prospects for avoiding recession. I do think its important to not be pollyanish. Recession risks are elevated that will remain the case as long as inflation is above target and feds fighting inflation back to target a few things that are, ahead that bother me runup in energy prices, oil prices a matter of concern. Particularly hard to forecast oil prices central Government Shutdown. Going to have a shutdown, a question how long . Could be at issue. Financial system, of course, under a lot of pressure with that inverted yield curve. Operating factors affecting that environment, banks, Financial Institutions dont look that good system is under a lot of pressure i worry if the fed has to keep up rates for a long time something might break. A lot of things to worry about no coast isnt clear. Im feeling really good about the no recession call but too early to declare victory. Mark zandi and dan, thanks for joining us today. Coming up, monitoring that vote on the future of Autonomous Vehicles in california its happening right now well get details on what we know so far and discuss how important the decision to mean plus crosstalk, or extalk. Ceo of the newly company twitter, discussing twitter and social media platform. Wrapping up the keys for you power lunch is back after this. New projects means new project managers. You need to hire. I need indeed. Indeed you do. When you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. Visit indeed. Com hire and get started today. Welcome back happening right now, the California PublicUtility Commission is voting on applications to cruz and waymo adding more vehicles and operate autonomously 24 7 throughout all of San Francisco a decision which could have a huge impact on the industry, on the experience we all have on roadways get to phil lebeau with details. What do we know so far reporter meeting just begun. Towards bottom of agenda last time we checked might be awail before a final decision from the cpuc recap what you said in terms what this vote is. Thats the number of people saying, this is going to allow them to put Autonomous Vehicles over the state of california no strictly 24 7 Service WithinSan Francisco and other things like might be ale to add fare routes in the future. For cruise and waymo they are only ones applying why for expanded service in San Francisco . The last several years testing their vehicles and testing Autonomous Vehicle technology on the streets of San Francisco, they have expanded the number of vehicles you will see out there. If you go out to San Francisco its not uncommon top see a cruise vehicle or a waymo vehicle. There are 300 in operation for cruise, 250. For waymo, and issue here is whether or not they should be allowed to go 24 7 allowing autonomous ride share. City Leaders Within the city of San Francisco who are opposed to this they point out that there have been very highprofile incidents where Autonomous Vehicles stopped in the middle of roads sometimes blocked Emergency Response vehicles from getting by, whether ambulance, fire truck, police car, whatever it might be and in general, theyre not quite ready for primetime. At least thats the con tense of officials from the city of San Francisco. So take a look at shares of General Motors keep in mind, gm has a big bet on cruise. It believes cruise will get 1 billion in annual revenue by 2025 and it has been expanding the number of cities where cruise is testing out its service. Dallas, houston, nashville the idea that eventually they want cruise to be an autonomous Rideshare Service that can operate nationwide were a long ways from that happening. Just talking about the city of San Francisco at this point. But there are a lot of implications here, kelly. Oh, tons. Phil, stick around as we bring in a couple more experts to weigh in mary ummings, professor of robotics George Mason University and expert in this space and an skirt on the stock managing partner at deep Water Asset Management welcome to you both. I suppose, mary, start by asking your view on how likely they are to give these companies permission to operate . Well, depends who you are a lot of people betting theyre get approval, that this is just a formality. I think the more important lesson to be learned out of this is, regardless of whether or not the vote goes in favor of cruise and waymo, this has been a huge public nightmare even if they are allowed to expand their operations, i think youre going to continually see negative public sentiment, groups will continue to rally and theyre going to now create youtube channels, continually ratting out behavior of cars when it turns out to be not very productive and or safe so its surprising that cruise and waymo are pushing so hard in San Francisco. Clearly not just city officials but the public isnt crazy about this car even if they win the vote, i do not see smooth sailing ahead. What would you say about that how are the sort of mega cap stocks most affected well, far as the sailing ahead i think topic of selfdriving basically has three pieces one, the problem bad drivers and disappointing to reports, 40,000plus lose their lives in auto accidents. Second the tech. Not there yet. Elon musk thinks by end of the year, probably means a few years away and the political piece the Pressure Point today this political piece is ripe for amplification, because as politicians, many of them are content creators and want to build a narrative around their views that get people to move to action selfdriving cars are one of those polarizing topics. I think ultimately its that this political piece today doesnt really change the outcome of whats going to happen with autonomous driving in the end, autonomous driving will be here i think we are going to be very happy for that, five, ten years down the road. If you think about companies that are going to benefit, two are most clear tesla, front and center. Elon said on last earnings call, access of 30 x times 30 x times miles training, sfd within the next 12 months and google with waymo doesnt get a lot of attention a function of time and tesla and google the two companies. Can i mark one of your curveballs so i know cnbc are about making money, profiting, like that just i wonder what the purpose of the ai is in the vehicles here . Bringing up the idea of saving lives. If the technology is about saving lives, it strikes me it would be a whole different set of tests going on right now to help ow individual drivers from hitting each other but really what were talking about here is this effort by these companies essentially to have cars that drive themselves and create a profit a profit source what is the purpose . Dont use the idea saving lives at getting Autonomous Vehicles saving lives put officialadditional Software People drive and not hit each other. Doing that as well. Be clear that the amount of its called adap for driver assistance, advanced driver assistance. The amount of adap technology in vehicles is far higher than it was even five years ago. And it continues to increase we are seeing oughtmakers and suppliers do that. Be clear about that. Your question is whether or not this is a disingenious effort by these companies when they say, well, were out to make it safer and save lives i dont think its disingenious. Theyve been clear ultimately if this Technology Takes hold and we have Autonomous Vehicles on the road for a rideshare company. I dont know metrics exactly im sure jean does, compare uber and lyft, strip out the driver, drives down costs considerably General Motors, new origin Autonomous Vehicle that goes into protection later this year. Plan to put that on the road think of that as almost a small shuttle bus with no driver in it the potential for that type of autonomous hide share to generate huge profits is immense. I understand what youre saying. Okay. But i dont think that anybody here has said, were only doing this to save lives. Lets be clear. If you want to pick up on that its also about making money. Pick up on that idea . Going to do about saving lives doing one set of exercises. This about some other than than that well, first of all id like to jump in and say, you see cnbcs data and that reported by crews of waymo crashing four to eight times more often than humans do. So there is no evidence at all that these cars are somehow avoiding error rates humans are. Theyre not favored. The other thing id like to say, tesla doesnt even belong in this argument. Tesla is not a selfdriving car company, do not have selfdriving cars on the road. We can argue about whatever elon musk thinks is going to happen, but unless theres a Huge Technology change inside those cars they are not selfdriving the waymo and cruise conversations separate from tesla, who does not belong in the self driving section. And i feel, smiling, smirking fair to give you response. Appreciate it take the tesla going to be a selfdriving car company give them two, three, five years. Well have a chatgpt moment when it comes to full selfdriving. Leave it there. Thank you both thank you all very much. Leadin, too come on such a great discussion. Netflix opening the floodgates disney following on password sharing. Much to the chagrin of viewers and cheers of investors. Trade that name and others in todays three stock lunch. Well be right back. Ing 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. Hows the chicken . The prawns are delicious. Oh, i have a shellfish allergy. One prawn. Very good. Did i say chicken wrong . Tired of people not listening to what you want . Its truffle season ah thats okay. Never enough truffles. How much are they . Its a lot. Oh okay im good, that its like a priceless piece of art. Enjoy. Or when they sell you what they want . Yeah. The more we understand you, the better we can help you. Thats what u. S. Bank is for. Huge relief. Yeah. Welcome back yields on the move followining recent cpi data. Rick santelli with us. As the bond market turns if we named it a soap opera . Yes as the bond market turns especially how Much Movement on long end start at beginning month over month tour. Up 0. 2 a guest on this morning thought too aggressive i look at the chart all i see is down, down, down, down 2s on top of 10s minute the numbers hit this morning, saw Interest Rates drop and stocks pop then something happened on the way to the floor two years and short rates, they stayed mostly steady only up a couple look at this up 8 and 30year option a dud. Why . Investors nervous about longend moving higher and that is something to tay passengers to talk to a trader jim, how ya doing. Good. Youre the man today. Tell you why youre an expert on what topic volatility. This is mr. Volatility. Heres what id like to know theres a couple of terms i always smile when you say, give us terms of short deficit and tell viewers why its so important. Vona and charm. Charm decay of delta Going Forward in time. Vona, decay of delta as volatility comes down. What happens going into expiration in a week before explanation that the short put, short stocks, and all of that stock can be bought back both in terms of time passing and volatility compression happening. This is what happens before a explanation. Heading into expiration tnext week. Excellent show a charts of the big vix zero days to expiration, a whole universe unto itself look at this chart, bottomed on, what 22nds june. The chart looks like it wants to go higher. Theres a tugofwar going on overarching, macro liquidity coming forcing negative flows i the market underneath the hood a sport is happening. Which explanation most important . Really important. This is the august expiration thats coming up before the big quarterly september explaniration. Most puts in the market. Add august expires enter september cycle a lot more potential volatility. Futures trading and trade commodities, big months are march, june, september and december thats what hes talking about the biggies. Quickly, 20 seconds. Anything big with pgi . Nonevent wait until next wednesday to friday when volatility comes back. Excellent jim, thank you. Always. Tyler, kelly . Back to you. Did he say vaona . Speechless i am. Here to talk to us about oil which is lower today so far. Yeah. Not participating in the rally lifting everything else. Of course after the six weeks of gains. It is all relative looking at oil prices a couple things to note. Did get latest report from opec today. They see deficit of 2 Million Barrels per day this quarter amid production sut in saudi arabia a little under 2 of Global Demand one other thing that the inventory report shows sales in crude, Products Market is really an area to watch here. Saw falling inventory tore gasoline and gasoline now 5. 6 below fiveyear average and diesel 6. 4 below average. Not for lack of trying by refiners 93. 8 . Pretty high. So prices could leave Oil Prices Higher of course a nightmare for the next diesel, or like exactly its higher temperature in the barrel. Warned in the part about diesel shortages and 15 below historical inventory levels still a little prone exactly speaks again to the rerouting of all the supplies. Sending a lot of our products over to europe down to south america. And over to brazil as well, but so you know. Runs and fueled the economy, workhorse of the economy, freight trains things like that. Deess certainly an area to watch. I was going ask cuts really coming through in other words, 2 million barrel shortfall or one of those segments of opecs imagination always had trouble ramping up and ramping down saudi arabia keeps saying, they do expect capacity and have production and more able to shift their output and keep signaling they are here to, want to price above 80 and saying in it for the long haul at this point. Pippa, thank you. And we go to the cnbcs news update. Hey there prosecutors pushing for Donald Trumps trial over alleged attempts to overturn the 2020 election to start beginning of next year. The governments proposed schedule would have jury selection starting in middecember with a january 2nd trial date court filing to the judge prosecutors statement trial will take four to six weeks the Trump Defense team yet to respond to that proposed schedule. Search for survivors in maui wildfires officially prompted a federal disaster declaration from President Biden the declaration opens up federal funding to maui county to help with state and local recovery efforts. More than 100 National Guardsmen also on their way to help with that response. And federal forecasters upgraded Hurricane Season predictions today oh as we hit peak Hurricane Season no officials saying they could see above activity 60 chance 14 to 21 named storms and 6 to 11 could become hurricanes initial forecast back in may predicted a near normal season kelly, back to you. All right thank you so much. Still ahead on power lunch, dorm domination. Analysts fear the backtoschool season hit by inflationfueled Consumer Spending pullbacks, but the desire of College Students to show off dorm rooms on tiktok could save the season and drive sales higher. We have that story. Announcer the bond report is brought to you by op the spread of wildfires. Nows the time to see what americas largest 5g network can do for your business. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Bridgett is here. She has no clue that im here. She has no clue whos in the helmet. Are you ready . Im ready alright. Xfinity rewards creates experiences big and small, and onceinalifetime. Day two of power lunchs series on the business and issues facing backtoschool this year. Yesterday, its august four kids i got i hated this time of year just around the corner yesterday discussed growing impact of ai in the classroom. Today looking at retail. Concerns inflation could hurt spending this year, but that might not be the case especially for College Students we have the story. Right, steve. BacktoCollege Spending expecting to hit a record thanksed to decked out dorms and demand for more electronics. College students and families expected to spend an average of about 1,400 per person this year costs for analytics translating to 94 billion in expected backtoCollege Spending, a 70 jump from 2019 the increase isnt just because of inflation a survey found College Students are buying more including big price items like furniture one big reason, tiktok i was told social media inspired teens to bring for headboards, wallpaper and coffee makers, and some hiring interior designers walmart, targets and liam sonoma cashing in because of Bed Bath Beyonds bankruptcy. Stores left behind market fare grab backtocollege loans, retailers overcoming other challenges. Best buy and macys among the companies that expect sales to decline this fiscal year and consumers face higher food prices. I cant say what were cheering for or against the trend. A huge Economic Impact stay there. More on retail bring in sandra com ppose a cnbc contributor good to see you. Do you have concerns about the string of backtoschool season overall this year . Well, ill say this, and thank you for having me on that store traffic according to retail experts, traffic in july actually was not really specifically down against last year sales were we are seeing people are shopping ahead we set the course early. Demand there early in midjuly end of the day, a lot of customers looking for sales. They are shopping. Looking for sale product and looking for it earlier biggest drop came in outdoor malls and also through the midwest in terms of traffic. That traffic was down more than 2 in the midwest, but down less than 22 west coast. People wanted to stay indoors and stay cool. Those malls let affected overall definitely seeing that customers want to shop, but they want sales and promotionss we see it, mentioning amazon, walmart and capturing some Bed Bath Beyond store closure and that market cap. Also stores like Container Stores 25 off through end of september. Definitely some reaction by the retailers making sure they have promotions that are timely when the customers looking to buy. Melissa, joining kelly in my ambivalence to this college thing. And these are all concerns. Didnt have ticktock. We went to the pawn shop, wherever we could to get stuff looking for. And but what they were throwing out and go through garbage to get their stuff and irished in a house the guy ran out of money and burned the furniture. To stay warm in december in buffalo. Let me ask you this its true l let me ask you this question how significant is college versus the Elementary School backtoschool has this been a growing trend over time or a postpandemic revenge spending College Spending larger than k12 think all that adds up amounts top that 94 billion twice the size of the expected spending for k12 according to our survey much larger because of food, shampoo, furniture covers a bigger category. And what would you add to that container store, 25 off hold these parents hostage explain youre saying. Sending your kid off to college, first time, ive seen photos people proud to show off their kids dorm room. A little more in elastic definitely a temporary piece. Going back to school and, again, not redecorating your dorm throughout the year. What you are doing, and we are seeing definitely some of those trends as relates to secondhand sales, resale. Continuing a big trend on tiktok that actually look where luxury price points jumped 29 . Even College Students, gen z jumping in on designer vintage popped up 36 million views past month and 1. 1 billion views total. Not only spending in terms of their dorms, also spending on vintage archival fashions thats more in the luxury stock i think again going back to certain sectors continuing to do well those college and teens going into, you know, tiktok and doing all the selfies. Going on there, that trends upwards. And talking about this tapestry deal . What are we to make of this . Is this the leading edge of something we have not had a lot of mergers and acquisitions these days is the iceberg melting any of this definitely seeing more m a activity and more combination and energetic growth able to acquire so that you have more market share, and in this case, going to be able to compete with a lot of the european highend luxury et cetera of the world. I think something we needed from a u. S. Perspective, people to have that top Luxury Company that have many of them so i find that was obviously quite a big number that they paid for it, but definitely going to see more m a activity and its happening now. Melissa one of the things with tapestry, spoke to tap islys ceo this morning saying with the deal able to reach a wide variety of customers. Its important to note a lot of those are younger consumers that buy the michael kors brand, and you always have to think about that next generation of customers and where you can connect with them. On tiktok and elsewhere. Im old school on this, bupt but my take, a big company buy as luxury brand they try to bring it, the mass market on it and ruin the brand. Joanne talked about that. She mentioned keeping all the brand of things. Important to remember capri includes michael kors more accessible appeals to gen z, within their price range and putting them in better condition to compete with european luxury players. Do you believe this up 55 . Like the deal, even despite what sandra said a fair price, capital s on it . Noting in may, capri cut its forecast and hit a 52week low coming off a lower base. Thats important to note as well great thank you both. Kelly, love that isnt it ma macro . Backtoschool, tiktok trends stuff we need to know about. And x factor telling cnbcs excuse me, does she light the direction, platform formerly known at twitter is heading and what the economy is under elon musk, too tell you what she also told our sara eisen when power lunch returns. Ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. You founded your Kayak Company because you love the ocean not spreadsheets. 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 welcome back Linda Yaccarino newly appointed ceo of controversial x sitting down with us saying the company is soon to be cash flow positive been with the Company Eight weeks. The operational runway right now were pretty close to break even close to break even yes close to break even. When you think about the cost discipline mentioned i mean incredible cost discipline before i arrived at the company. Also said x is starting to hire again after elon musk cut the number of employees from around 8,000 to over 1,000 now our Julia Boorstin joins us now to discuss julia, i guess my question is, Linda Yaccarino went in there with her advertising backgrounds. Has she captured the market already or too soon to say i mean, look. We dont have data on whats going going on in the organization the fact she shared close to break even indicates profit up and progress talked a lot how their working on things obviously big kearns with advertisers and what she laid out was a vision of, i would use her word here freedom of speech, know free. Loll not awful enable a free speech platform and create an environment that is very safe for brands. Thats been a big priority for her, steve sounds like making progress and bringing more brands back on the platform, but mostly, to me, fascinating to see how this company will fit into a Broader Company with payments, video calls and going beyond just being a platform nor communication. What do we know about users and usage, julia i keep seeing tweets out there from opponents or critics of x who say its over, its done keep seeing tweets of elon musk about how either viewership or usership or liking or seconding, whatever you use for the term, alltime highs whats the real story . Yeah. Looking to see if there were numbers mentioned in her commentary, but i think the . Ed is theyre making a favorite platform and said people like the x rebrand. A question that asked whether a mistake to give up the twitter brand, because it is so iconic, so popular, and many more people know what twitter is than actually on twitter. I find myself calling it twitter instead of x now even though its been a couple of weeks. Shes been talking about how people like that and this idea they need to rebrand to liberate themselves from some of the restrictions of what twitter was associated with and indicating that consumers are onboard for that certainly seems like a process, but we dont have the kind of engagement numbers we used to get from the company when it was public used to get daily active, monthly active monetizable user numbers and obviously the engagement had a direct impact on advertising revenue we dont get it because those numbers, anymore, because theyre not public. Interested, julia, just eight weeks she gave an interview. How important is it for a Media Company like sdox people can ha base to look to, turn to, identify with . Is she that person to help out the brand . She is absolutely essential as face of the brand especially when it comes to advertisers but also the big highprofile people who want on the platform if theyre concerned elon musk may be a little unpredictable with use the word unpredictable they want her to be a solid, steady hand making sure its a safe platform. Interesting answer to a question about her authority on the platform a lot of people saying, hey, isnt this all run by elon musk . She says i have autonomy i dont know if we have time for that sound bite. Elon focuses on Product Design we believe a team of extraordinary engineers and focuses on new technology. So think about it as elon is working on accelerating the rebrand and working on the future im responsible for the rest running the company. From partnerships to legal, to el is as, to finance all the things and you have autonomy in doing that yes, i have autonomy doing that. What the interview is about making it clear shes running the business, has safety issues under control and elon musk may post what he does on the x platform but shes the person whos making sure its a safe Business Investment for advertisers. Great rundown thanks so much. That was a funny interview today. Coming up, entertainment ecommerce and excite disney, alibaba and six flags. All after the break. swords clashing had enough . No. Arthritis. Here. Aspercreme arthritis. Full prescriptionstrength . Reduces inflammation . Thank the gods. Dont thank them too soon. Kick pain in the aspercreme. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Lets start with disney whose shares are up 4 after they laid out plans to raise the price and crack down on password sharing. They had a rare quarterly net loss lets talk about it. Good to have you with us today, quinn, are you a buyer of disney here yes, in fact we bought it today. Disney has been undervalued for some time. We think that that will stick. We also think the company and the espn penn gaming deal is a big deal and ultimately opens up additional Revenue Streams we added the stock today weve been watching it for some time, wanted the earning out of the way, a great risk reward with a stop at 85. So raising by 60 year over year, what say you yeah, steve, weve been long alibaba as well. I think a lot of people dont understand the reorg that will transpire here the sum of the parts, as many have mentioned before, is quite attractive in our estimation its trading at about a 40 to 50 discount were locking for about a 25 to 30 upside from here impeccable Balance Sheet again, the breakup allows some regulatory pitfalls theyve had in the past and execute better were long the name. The risk is someday the communist party comes over and takes over, and you have more up side than down on this. Yes, we are adding risk to whatle valuation says. Our valuation says its about 50 undervalued. Ultimately thats not entirely true, because there is inherit risk of delisting, as you alluded to we would reduce that down to around 25 , 30 , which in our, you know, estimation is worth it to take a shot. So then that leaves you at six flags. You know, you could say its similar to disney, but its different. They have a decrease in admissions, talked about some insurance costs rising as well do you like this stock on the pullback you no he machined a Balance Sheet. This has a terrible Balance Sheet, declining earnings. Its just not a touch for me until we see a real turnaround and improvement in the financial scenario. Quinn, well leave it there thanks for joining us today. Coming up, wyche only got a little time left its closing time, next on power lunch. Power e trades easytouse tools, like dynamic charting and riskreward analysis help make trading feel effortless. 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Welcome back we have a quick closing time, and weve got to talk by psychedelics, because a new report highlights how more and more companies are offering psychedelics to help workers i didnt take this just because youre here, but i feel like you would be im just interpreting the college dorm type of i like the concept, but im a data guy im going to let the science and medicine dictate how i feel. Maybe a segue or maybe day, but we want to remember the canadian musician, he was behind the band he wrote cup their biggest hits, and later collaborated with movies a person loss for me for a generation of people who grew up with robbie robertson. I we we can play that song on the way out. Thank you, steve closing bell starts right now. Welcome to closing bell. Im mike santoli in for scott wapner this makeorbreak hours has the bulls fumbling the ball, unwinding for the morse part, and ongoing pullback in the Semiconductor Stock as well. The s p 500 was up 1. 3 at the morning highs. We lost one percentage point off that rally just a few minutes