Highs. As dom mentioned, a couple of days left in the trading mark. The s p is down 4. 5 and the nasdaq down almost 6 . It has come as the flip side of higher yields. The tenyear yield closing level on august 31st was just 409 as you can see over here. We jumped more than 55 basis points in a month at 462 latest check this hour. Lets bring in rick san tetelli from chicago with more. Rick. I tell you, if i had to make a prediction folks, this is just my opinion but i would say i have a cycle interim top showing up technically. So today and tomorrow are very key days if you are watching the treasury fixed income markets. I would look for a little bit of buying to start reversing some of the moves. Lets get to the month to date. As kelly was saying, look at the month to date, up over 50 basis points at current levels. What is interesting is if you add in twoyear and 30year, well, 30year is up 53 basis points month to date at current levels. I have talked at great length about how long ma territories have taken the heavy lifting and are leading the rates in this last big move for august. But you see twoyear there, up only 23 basis point at current level. So it is up half speed with the longer maturities, and it isnt just us. Think about europe in general. Think about all of the countries that are dealing with inflation. It is a global issue, so lets look at twoyear notes bill griffetg for the u. S. , the uk and the eu on the same chart. You will see what im talking about. Lets do long maturity in form of a tenyear. The same dynamic going on. This is important because central bankers are all fighting a similar war, and my guess is that you will not see one country have a widely different inflation outlook, just subtle. So we want to monitor all of these moves. Finally, the big beneficiary to big month of august rates was the dollar index, up nearly 3 . Kelly, dom, back to you. Thank you, rick. A great recap. For years the stock market mantra has been known as tina. There is no alternative. Bonds and cash were pretty much at zero but not anymore. This year has given way instead to the socalled t bill and chile proech, and even gold is regaining its luster. Dom, are you listening . I am. Have you seen this, selling gold bars. 19 hunter biden and sell eveselling out quick. They dont have a lot of them. Are these alternatives behind the september swoon in stock . Lets ask rachel aiken, Senior Investment officer at cape cod wealth management. Peter bookbar, a cnbc contributor. Our own bob pisani. Welcome to all of you. Peter, i will start with you because i think you summarize it best when you say it is just the sovereign debt bubble popping. Do you think that will keep people seeking alternatives for sometime . I do. And the bubble peeked when we had 18 trillion of negative yielding securities in europe and japan. So this unwind is a global phenomenon and, yes, i think a lot of people are trying tofind other things to sort of hide out in. What is most empressing about gold interesting about gold is how well it has traded in a short period of time. I guess the question to ask as a quick follow up, peter, to that is, you know, at some point do people say, okay, well, i have my exposure now to bonds, i have my ek poxposure to gold an there is really still no other alternative . Well, the interesting thing about gold is that the demand is not just from industries. We have seen a voracious appetite on the part of Central Banks in wanting to own gold as part of their reserves. When the u. S. And the eu decided to sort of confiscate or at least freeze half of Russias Central Bank reserves when they invaded ukraine, it was a wakeup call to a lot of other Central Banks to say, hey, maybe we are safer owning gold in our own vaults. I think that central bank bid has been enormous and i think it is one thing helping to keep gold. Now, thats not necessarily their investment decision, but it is their desire to own things other than u. S. Dollars. Rachel, i want it is dom here. I wonder if you take a look at the way things are setting up, we have gone through such a long period of time with those t. I. N. A. Trades, there isnt an alternative, 0 Interest Rates, as soon as you see Interest Rates on a four or five handle, that has to seem attractive to some folks even if they feel anxious about the sovereign debt market. Can the equity markets participate to the upside in a rising rate environment . Hey, dom. Thank you. I agree that, you know, seeing a four handle on any tenyear is really an attractive opportunity we feel for clients. Especially it wasnt that long ago, less than 18 months or so, that we were seeing less than 1 . With that backdrop, theres definitely competition for dollars from the equity market, especially for investors who are recessing nervous tolerance and who now have 5 , 6 for return for entering the hurdle on the market. On the shortterm interests abound, not only on Interest Rates but oil in the environment we are in, but longer term the market can and has been able to do quite well in an environment where a tenyear has been in that 4 , 4. 5 range. It is just a digestion or should i say the indi jgestion that th market is feeling right now with the jump in september. Bob, with the deficit as bad as it is and the debt situation as bad as it is, as people shine more light on that do you think they will get more concerned about how we resolve it . Yes, for sure. I will tell you what worries me. Gold doesnt worry me particularly. The biggest determinant of gold is jewelry and jewelry demand is china and india. Those consumers determine the price of gold. When china demand waned last year, gold fell apart. The dollar was strong at the same time so it was a disaster for gold. What im worried about is the competition with bond. Gold inflows have been modest. Bond inflows short term, big this year, really big. I will be talking about this on etf edge on monday. We now have bonds, a serious competition for stocks for the first time in decades. Bond yields are positive on a real basis. We have older investors like my age, the baby boomers, theyre sitting on decades of gains in stocks. Many of them do not see the risk reward for stocks as being particularly high with bond yields positive on a real basis, on an inflationadjusted basis. This i think is a really massive change and it is going to be a real problem for stocks, competition for dollars for the next few years. I think this is a major issue, not gold. It is bonds. Rachel, amid that market backdrop, if there were hypothetically a Shopping List to put together for stocks that you think could be attractive, hold up well amidst that backdrop, what kind of industries, what would they be . Yes. So i think, you know, one of the things that were seeing with higher rates is if they stay this high for long what type of stocks will be able to do well in the face of economic weakness. So there we are really looking for cash flow positive companies, a lot of free cash flow, doubledigit Revenue Growth in earnings. And in that space we have companies that we think are relatively recession resistant that you are looking at today, especially a company like visa where we were fortunate when the s p did their reconstitution and put visa and mastercard out of tech into financials to give us an anchor in financials that didnt have credit or Interest Rate exposure per se, and really some limited downside even though they are very visible to the consumer with other avenues in growth with their other Services Including tokenization, security as well as consulting. Also along those lines, a company like lockheed martin, feeling some headwinds right now from what has gone on with the government shutdown, with the budget deal earlier this year as well as some intrinsic issues with deliveries, but it is a company that is agnostic to the economic cycle. We like that recession resistance and the clear visibility for cash flows and revenues moving forward for a long time. All right. So, peter, put a pin, a button on all of this for us. Well, to talk about gold as a buy, over the past two years and gold is very sensitive to real rates in addition to movements in the dollar. Real rates have risen 450 basis points over the past two years and gold is higher in that environment. That says a lot about the tremendous demand forgold. It is not really in the u. S. It is happening outside the u. S. You can be sure in higher prices there will be much more u. S. Demand for gold at some point. All right. Peter boockvar, thank you very much. Rachel aiken, and, of course, our own bob pisani. Thank you guys very much for a fascinating conversation there. Coming up on the show though, weve got the latest on the uaw strike as workers are getting set to walk off the job at even more plants, but automakers stocks are all higher right now as you can see there. A couple of interesting stories in todays power check. Albemarle leading to the upside. Yesterday announcing a new partnership with caterpillar. It willuse cats batterypowered equipment for a new lithium mine and in return their lithium will be used in caterpillars batteries. The press release says volume weakness tied to affordability challenges in carmaxs words. People bought fewer cars because theyre very expensive. Power lunch will will be bacr this. The bond report is brought to you by pimco, the Global Leader in fixed income. The first time you connected your godaddy website and your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com personalized Financial Advice from ameriprise can do more than help you reach your goals. Wow. We can make this work. It can help you reach them with confidence. No wonder more than 9 out of 10 of our clients are likely to recommend us. Ameriprise financial. Advice worth talking about. This is Spring Semester at fairfieldsuisun unified. They switched to google tools for education because theres never been a reported Ransomware Attack on a chromebook. Now theyre focused on learning knowing that their data is secure. . Welcome back. Lots of talk in the markets today about the status of the uaw strike. Lets go to phil lebeau for the latest this hour. Phil, what do we know . Kelly, a couple of things. Lets talk first off with what may have moved the stocks earlier today. It was a report from bloomberg saying that the uaw may be aiming for at least a 30 increase in pay plus cost of living adjustments through the life of this contract. The reason this gets attention was didnt people originally say 40 . That headline was they would age for 30 wage and cola pay hike. We reached out to the uaw repeatedly throughout the day. At this point the union said it declines to comment on the bloomberg story. Meanwhile, a lot of people will be focused on what happens tomorrow morning. Thats the next time we will hear publicly from shawn fain, president of the uaw. He will give us an update on negotiations at 10 00 a. M. Eastern time. He says if theres no progress we could see more strikes. Could see more strikes. The walkouts, if theyre at one automakers, two automakers, three automakers, if there are new ones those new strikes would start at 12 00 p. M. Eastern time. I want to clarify something for a lot of people. Yes, it is a nationwide strike that is impacting all three of the automakers, but it is limited to a certain extent here. We are talking about just 12 of the big three uaw members who are on strike. As you take a look at shares of gm, ford and stellantis, one reason the stocks havent moved a lot since the stocks began is three of the 26 final Assembly Plants in the country have workers who have gone on strike. Let me say it again. 3 of the 26. The reason i bring this up, the impact, while it is significant, especially at those plants where the workers are out on the picket line and theyre not getting a paycheck, theyre taking a strike fund payment of 500 a week, thats not to diminish what is happening at those plants. But the overall production remains largely intact for the big three here in the United States and just 3 of the 26 plants have been hit by strikes so far. So well get an update tomorrow morning, guys, from shun feign. Shawn fain and see whether they call for more strikes. Phil lebeau, thank you very much. As the autoworker strikes intensify, our next guest says what we are seeing is an entire generation just rising up angry. Lets bring in bill sokel, a labor lawyer representing unions in Labor Relations with their employers and members. Bill, we are seeing work stoppages, strikes across all different industries. The uaw is front and center right now but we just resolved parts of one affecting hollywood and we have health care ones in the offing. Is this a new paradigm in terms of labor in their relations with the companies . Absolutely. I think what is happening here is an entire generation, the Younger Generation is rising up very angry because they found out during covid theyre the essential workers and yet theyre told you have to work for 18 an hour to build cars. So this has happened not just for the uaw but as you pointed out theres amazon, theres starbucks, theres u. P. S. We now have Health Care Workers who might go out on strike. We have the culinary workers in vegas who may go out on strike. We have the hollywood strike thats been half resolved. These are younger workers who are saying, look, theres tremendous corporate greed out there that is denying us the american dream. We have the right if we work hard, you know, to own a home, have a car, go on vacation, send our kids to college. Companies like the automakers, they make the industry makes 20 billion to 30 billion every year since 2015. They have ceos who make 20 million to 30 million a year and poor mouth 18 younger workers saying, sorry, we cant afford to pay you more. That doesnt cut it with the Younger Generation. This the late iteration. I think it is going to keep on spreading. We are in for me what is a very exciting historical moment. Something has happened that hasnt happened, you know, in the four decades i have been a labor lawyer. Speaking of four decades, even more in terms of labor law, bill, Union Membership as a percentage of the working population in this country has been on a very steady decline over the course of the last 50, 60, 70 years in america. Theres probably a reason why for that and theres probably a reason why now it is starting to boil over, but is this enough in essence to change that trend . Do you think that there will be more union participation because of this or are we just going to put a blip in the road and continue that downturn after these Current Issues get resolved . Thats the giant question. None of us truly know the answer. From my point of view i think this is just beginning. I think theres a new wave here, and it really is about generations that are being denied what they feel is a fair wage and a decent living. When you tell young people that you cant own a home and you cant send your kids to college, you cant have a decent pension, we cant even give you Decent Health care, i dont think thats somehow going to just go away. We can take lordstown, ohio as a great example. They had a giant gm plant that was going to shut down, trump came down and said, were going to take care of this, keep building trucks, and a year later they shut the plant down. A piece of it is making electric tractors for farmers, thats steadily growing. A couple miles down the road a giant battery plant the uaw has organized and there will be Young Workers there making a very decent living. So i think because the uaw is organizing, i think we are seeing the beginning of something very big. Although, bill, i wonder if the focus is a little myopic because looming in the background is the transition to evs where china, especially byd, is doing them a lot more anymorably at lower cost. If they ever come into the u. S. Market, and they will try, they will hold our leverage over their market as a bargaining chip, i dont know how the big three could ever compete, even with tesla. Tesla can pay less because it can offer Stock Options. Who wants Stock Options at gm . Lets flip it on its head. Assume forsake of discussion that no Political Party is going to commit suicide by not keeping the chinese cars out. I dont think it is a real threat. Still, what if the chinese come and say, gm cant sell into our market. That would zdevastate gm. That will leave gm with latin america, south america, southeast asia. Will we work it out with china . We may or may not but i dont think we will see our car industry destroyed by the chinese car accident. To the contrary, what we saw happen with tesla is what it is about. Elon musk ate the lunch, unfortunately, of the big free. He came out to of all places fremont, california. B buys an old used General Motors plant and retools it and it now makes more electric vehicles than any other plant in america. Before he was there on gm there were 10,000 workers there. Today there are 10,000 nonunion workers there. What happens there . If the automakers have good sense they give a good contract to the uaw, settle it the way u. P. S. Did, a win win situation and thats what uaw needs to take to tesla and say, see, this is what happens if you work for the union. If they are smart they will give a good contract to compete with tesla. Bill sokol, we appreciate your thoughts. The chat of the times. That was great. By the way, my First College internship was at that new United Motors manufacturing pta facility that is now tesla. It was joint between prism and gm. I used to work there. The nbcs 13th annual delivering alpha segment is under way in new york city. We will get a highlight on the key issues next. Dont met the annual advisor summit on october 12th. We will convene top market analysts to help their clients reach success. Power lunch will be right back. If you think you ha