Get into my car and, brian, i need a few more days until we get ready for this days power lunch. We dont have the luxury. Welcome, everybody. Power lunch sails on at 1 00 p. M. Eastern every day. Im tyler mathisen. Stocks lower now, but holding steady, off about 42 points on the dow. Four, almost five for the nasdaq. And 3. 75 for the s p 500. Energy, the worst performing sector. Telecom and utilities at the top of the charts right now. Earnings the big focus this week. It is a big week of them for investors, ton of big names set to report. And two at sort of either end of the technology spectrum. Netflix, video, obvious, new media, and ibm, old tech. Theyre out after the bell today. Check out those stocks ahead of the numbers. Netflix down about 1. 5 . Ibm, basically flat. Seema . Hello, tyler. Im seema mody. Here is what else is happening at this hour. Americans hitting the road, the Transportation Department says motorists logged 285 million miles on u. S. Roads in august. Thats the most ever for the month, up 3. 5 from a year ago. A shakeup at mcdonalds, the wall street journal reporting more Senior Executives are expected to leave this week. And the caterpillar ceo will retire from the company next year and will be replaced with jim appleby. See you back here at the desk in a second. If you watched halftime report, we hope you did, you heard some of the biggest names on wall street weighing in on the markets, and also the election. Hedge fund manager david tepper saying, quote, the risk for stocks is more to the downside. Hes also holding a lot of cash right now. And there are conflicting views from the fed on rates. Lets chat more about the markets with adam parker, chief u. S. Equity strategist with Morgan Stanley. Scott wapner with us as well to recap a big show to start a big week. Adam, is there anything you heard or saw from mr. Tepper, icahn or mr. Gundlach that you fundamentally agree or disagree with . Well, i didnt see the prior segment, i apologize. All those people are a lot smarter and richer than i am, so im sure what they said makes a lot of sense. I have a longterm view that is constructive on equities, so i can see some shortterm concerns around maybe slowing discretionary it spend or choppiness in terms of the soft patch heading into the election in terms of u. S. Consumer participation. But medium to longterm, im pretty constructive on u. S. Equities. Scott wapner bounding over from the halftime desk. Big show to start the big week. Sprinting. Literally sprinting. I thought it was interesting how josh brown and adam, stay with us, wrapped it up, saying the stock guy is kind of negative on stocks. The bond guy is kind of negative on bonds. What was your takeaway . I think pretty much that. You dont hear from david tepper all that often. Hes a market mover. Interesting to get his point of view on where he sees the fed and the election seems to be the real big uncertainty for at least tepper himself, though you heard gundlach say i dont think the election matters either way. That either, you know, donald trump or Hillary Clinton are going to theyre going to get fiscal stimulus or whatever. So i thought that was an interesting point of view. I think tepper made it kind of obvious without saying that he was short bonds. He said im not long. But definitely said, well listen to a bite now, here is what he said about the stock market. Levels being fairly fully valued market, with margins that may be under pressure because of wages and now the dollar seems to be getting strong again. So it is a difficult environment. It is, you know, environment that, you know, it probably would be okay, not great returns, but okay, and then you are have to deal with the election and what the outcome of the election. And depending on the outcome of the election, you know, the market can move different ways. So i think, you know, generally speaking, you know, pretty cautious on the market, not outright bearish on the market. You said it, holding a lot of cash. Waiting to see how things shake out, but also saying at the same time, look, you know, im an optimistic guy. Markets have a tendency to go up. It sounds as though hes waiting for maybe a better opportunity once gets some clarity. Dont the comments from tepper and icahn, scott, touch on a fundamental debate that investors and american citizens are facing. Can you focus solely on the economic policies that donald trump is pledging and overlook the extreme rhetoric that were also getting from him . It is a tough environment to invest in. If you watch every poll, which, you know, they come out every day, or thereabouts, certainly seems, it is tough to get an idea of where you think things will shake out. It is not just a top of the ticket issue at this point as well. You have to sort of consider how the down stream races are going to shake out, especially after this, if you want to call it a fracture or whatever you think it is in the republican party, following the events of i would argue it is more of a bottom race than a top race. I think adam parker is still with us, were not trying to run you over here, but, you know, i think the house and the senate are going to be more vital to the stock market than the president. Which didnt seem to be as much in play as they seem to be today. It is hard to get a read on that. Adam, what do you think . Look, i i try to invest and give Investment Advice beyond the next few weeks here. And i agree that the senate and house composition matter a lot. What you get from the equity market is a little more than 2 dividend yield, about 2. 3 net buyback. When people say the market has been flat, they mean the s p, not the dividend. The dividend, that helps in the low bond environment. So i get about 4 to 4. 5 . Earnings expectations are zero. I have a call for the low expectations. I think thats pretty good relative to most other assets in the world. I think there is areas i like within the market that i think can do well that are mispriced beyond the election. So were set up in the portfolio, you know, sort of independent of what happens two or three weeks now. Were set up to outperform as we look out to 3, 6, 12 months. I want to come back to you in a minute. First, scott, apart from the times when carl icahn wanted to know what kind of bachelor parties you went to and what kind of locker rooms you were hanging out in, i thought one of the interesting points he made was about the regulatory apparatus. And his concern that an enhanced regulatory regime, which would be a clinton win, would be dangerous to capitalism. He has said and he said it on the stage at delivering alpha, now he particularly took on the epa there, but one of the reasons why he supports donald trump, he thinks that trump would get rid of a lot of the regulations on a number of different industries, right. Were here talking about on a daily basis wells fargo and the banks and some of the regulations that exist there, but hes taking on the epa and i do want to play a sound bite, if i may, of carl icahn, who i think it is fair to say maybe sounded a little more resigned to the fact that maybe his guy wasnt going to win, although hes still not giving up hope, and who knows, because i dont know what polls, you know, after the brexit thing you can listen to anymore. So you dont know. But heres what he said about his support for donald trump. Im not here to say hes running a campaign the way i would run it. I think obviously a lot of people have said it and ive said it too, he should stick to the issues, stick to them and stick to them. The issues he has are really good. What donald is going to do for this country i think is break that logjam in congress. You cant keep on with the status quo the way it is going where you need fiscal stimulus. I think the Federal Reserve and bernanke and everyone along the Federal Reserve since it has been there said that and youre not getting fiscal stimulus you need at this time. So i think donald would do that. Being that said, maybe hillary will also do it and get it done. But i dont think as much. Maybe thats why Jeffrey Gundlach said the outcome of the election is not going to matter maybe as much as everybody is so fixated over. I dont know. I would agree with that. It is not a sexy thing to say. Whatever it is. Adam, how much do you think Regulatory Overreach is holding the economy back . I mean, look, it is hard to quantify that. I know a lot of people are very worried about it. It impacted the financial sector, banking sector, health care, et cetera. I tend to have a view that i was at a speech many years ago where bill bennett said, you know, i take my dog to the beach every day, we watch the sunrise and i just dont give my dog credit for it. I tend to believe that economics cycle is kind of moving a little bit independently of who is in office and so therefore it is really hard to measure what the political influences on the stock market, you know, it can really vary. My sense is Interest Rates cycle and economic cycles, you know, can kind of deviate from which party is in control and you can show that over time. I think it is harder to measure. One of my final thought here, adam, broad word that kept come up, cautious, cautious, cautious. And heard at delivering alpha. Are you cautious on stocks, cautious on bonds, cautious, gundlach said cautious on all asset categories. Yeah, look, i mean, so i dont know what how people are positioned, other people youre talking about. I feel for me you just raised your target for the s p. Yeah, couple of months ago. Maybe if youre one of the experts you just had on and used to 30 , you know, keg, midsingle return looks pretty pumped. If you look at government bonds, what youre getting with corporate bonds, i think u. S. Equities look like good risk reward. I got on my side good total yield, i good a good relative valuation versus other asset classes, 72 of all stocks that trade 100 million bucks a day are more in the u. S. , liquidity premium people will continue to want to pay for and cautious positioning if you look at Morgan Stanley sort of prime brokerage units content, how people are positioned in the options market, surveys, et cetera, you got a combination of fundamentals, Liquidity Position that u. S. Equity is pretty attractive. In terms of where to find growth, youre advising comments to buy biotech despite the regulation that Hillary Clinton is proposing on drug pricing in general. Why are you bullish on this sector . First of all, youve been able to fade rhetoric around it, drug pricing in prior elections i would say. Look, the logic is this. Biotech trades the same multiples on cash low and earnings as pharma. Despite superior growth rate, more assumptions about the pipeline and most people dont realize Ricky Goldwasser showed that a lot of the Pharma Companies have taken more aggressive pricing on their products in biotech. I have a much more onerous assumptions and i like that kind of favor biotech over pharma pair trade quite a bit. I think it is mispriced. Get beyond the election, people look where can i get way faster growth for similar multiples in the market and biotech, likely a lot of deals, will be an area that will outperform i think quite a lot over the next two or three years. Adam, thank you very much. Scott, thank you very much. Take care, guys. Nice to be with you, adam. Scott. Actually nice to be with you too, scott. Were calling this halftime overtime. Ill be back with you. The acronym for that is hot. It is. Halftime overtime. Sums me up. Dont forget to tune into halftime all this week, allstar lineup, jamie dinan, mark lasry, keith meister, rich pzena, Barry Rosenstein and robert kraft, nice game yesterday to celebrate. Before we let you go, can you ask bob kraft one question on behalf of my family. When did tom brady get all metro . Metro . The fashion sense. The fashion sense, after the game yesterday. When hasnt he been . Good point. Hes everything. Hes stylish, perhaps. Gentlemen, moving on. A big announcement from pepsico this morning. The company is planning to cut calories and in many beverages. Sara eisen sat down for an exclusive interview with the chairman and ceo. A lot was mentioned by the chairman and ceo. This global ambition to cut down on sugar and salt, but is it a little too late . Has that consumer who is more Health Conscious already switched to other brands . No, pepsi has been all over this trend and now it is doubling down. The goals laid out today are aggressive. It is a response to both consumers eating healthier and increased regulatory pressures to cut salt and sugar, to fight obesity. Specifically pepsico says two thirds of the beverages will have no more than 100 calories from added sugars per 12 ounces by 2025. And just for perspective, beverage digest publication says it is now about 40 of the beverage portfolio. So there is work to do here. And, of course, there are risks, costs for one, and it has to taste good. Here is an example of that challenge that the pepsico ceo talked about when talking about another goal that she set today. Listen. In the case of saturated fat, that was a challenge because people love fried snacks. So we had to really invest in technology to reduce the saturated fat levels. It has taken us a while. Now two things. We have frying snacks in heart healthy oils and Significant Technology breakthrough now commercially being adopted in china which is a new frying technique, which actually reduces saturated fat levels by about 20 and increases capacity of machine by 25 . So very excited about that. It is hard to find a direct comparison to what some of pepsicos competitors are doing on this front. Certainly pepsi has been moving away from carbonated soft drinks and cola at the same time when cocacola is doubling down on it. And in terms of snacks, remember, pepsico is talking about the frito lay business. It is cutting back sodium and saturated fats by 10 by 2020. Companies are really setting their own targets here when it comes to the ingredients. Pepsico stock is up 7 this year. Outperforming those other two companies, for instance, on stronger results. And today we got a snapshot of how the Company Wants to keep it up, big picture view when it comes to Health Concerns in the future. Brian . Sara eisen, thank you very much. Well, the clock keeps ticking on the election. Just 21 days to go until election day. I think i speak for america when i say thank goodness. But early voting already under way in many key states and we have got the early read on the race just for you, america straight ahead. When youre on h, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Comcast business. The strikinglydesigned lexus nx turbo and hybrid. Get up to 5,000 customer cash on select 2016 models. See your lexus dealer. Welcome back. 21 days to go until the election and where do the candidates stand right now . John harwood has the latest poll numbers live from washington. Hi, john. Hey there. Lets talk about the state of the race because we have a new nbc wall street journal poll out this weekend and it shows Hillary Clinton with an 11point lead over donald trump with likely voters. 48 for clinton, 37 for trump, 7 for johnson, 2 for jill stein. Thats a large lead. Some people will say, well, i heard other polls have a different margin and that is true. Lets look at a couple of other polls that came out over the weekend. Washington post abc poll had a 4 point margin in clintons favor. The George Washington university battleground poll had an 8 point margin. Ours had an 11 point ratheren. Thats why people tend to rely on averaging polls together. Why do they do that . Each poll has a margin for error and one out of 20 could be way off. So you average them, you reduce the possibility that youre off. But if you look at the averages that are kept by leading organizations, those dont match. The New York Times polling average has Hillary Clinton ahead by five. The real clear politics average, widely quoted, has her up by a little more than six points. The Huffington Post average has her up by eight points. Now, what are the sources of variance in polls and the things that make it hard and harder than it has been in the past to poll accurately. People have become so consistent in their voting patterns that if you get more republicans or more democrats in your sample, youre going to change the bottom line result of the poll. Second is dealing with response rates. Fewer people are willing to answer the phone for pollsters. That makes it difficult and costlier to do polls. And research has shown that if youre not feeling good about your candidate, you may be less like through participate in a poll. That could be weighing down Donald Trumps numbers down now. Finally, the big question mark is who is going to vote. How do you model turnout . What share of the africanamerican vote is going to be cast . What share of the latino vote is going to be comprised in the final electorate. All those things are uncertain. You cant say for sure. And it is why there is people have to deal with a little bit of variance in polls because thats the nature of the beast. And i will say, just before i came on the air, Monmouth University just came out with a National Poll that had a 12point margin. One tick larger than ours, 50 for Hillary Clinton, 38 for donald trump. When you saw that margin in the wall street journal nbc news poll, were you surprised . Yes. It feels a little bit high to me. To me too. And, again, we we talked about partisan balance. In our poll, when we apply the criteria that were now using to determine who is a likely voter and theyre different than they have been in past years because we found that previous mea