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tv   Power Lunch  CNBC  August 17, 2022 2:00pm-3:00pm EDT

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♪ all right. we call it breaking fed news the minutes of the last meeting, the one where they raised interest rates by 75 basis points and 0.75% and those minuteses are due out momentarily and investors will be looking at what is going on about the clues and the size of future interest rate hikes and ahead of the minutes, they're lower across the board and 163 points and let's go now to steve liesman who has those minutes. >> the federal reserve after hiking 75 basis points in the january meeting decided that they anticipate further rate hike ahead they said they needed to move to a restrictive policy and it was required to meet the policy goals of low unemployment and stable inflation the pace was data dependent and it was difficult to get a read from the 50 to 75 and i'll
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explain why in a second. it was likely to slow the pace of tightening at some point. no indication when that would actually happen, but after the 75 basis point hike the funds rate was seen by several participants in the long-run range of the neutral rate, but some participants thought because inflation remains high it was still below the shorter run meaning the fed had more work to do in that regard. some expected the fed to hike and maintain the level for some time we haven't seen that language before after fed officials did talk about that idea and it was lucky that the fed would reach a certain level and stay at that level rather than cutting which is what the market has priced in now. there was also quite a bit of concern about tightening too much in fact, many were concerned about that and that's important, but overall there was a lot of hawkish talk about inflation and it's unexpectedly higher and broad based and this is interesting. the decline in commodity prices was not seen as enough for the fed to be comfortable that
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inflation was coming down and they said it was broad based and they want to see broader-based declines and inflation to be comfortable about that there was little evidence, they said, of inflation pressures that were subsiding and they said inflation could stay high for some time and just a quick thing, and they did say the second quarter saw a noticeable slowing and they did see growth in the second half of this year. >> hang out just a little bit and we'll talk farther with adichia, welcome good to have you with us you heard steve's recap of what the fed said and discussed in the most recent meeting in light of what they did how do you interpret the language there >> thanks for having me. >> yeah. pi think the language is consistent with the base case for a 50 basis point rate hike one thing of note is that the minutes are a touch stale because after the minutes we've
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gotten the very strong jobs report, the very strong retail sales report this morning and the softer than expected july cpi inflation. so the fed looks at that and it can say, well, inflation slowed down just a touch and not just on the headline and also in terms of the core and we are seeing the housing and capex suggest that the interest rate sensitive parts of the economy are being affected by the fed hike and if you want to be date dependent going forward and there is a pretty good case to slow down just a little bit. >> if they're true to their word and going to be data dependent, the data steve says adichia tells him, at least that they may not do another three-quarter-point cut that they might come back to a half point. we just heard from diana olick who just used the housing is in resessions >> the fed acknowledged that quite a bit, the fed being in recession. the fed did not say that, sorry.
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the fed talked about the housing slo slowdown, and they brought up this idea because of the fed's communications which is quite extensive that the market, the economy is responding more rapidly to these rate increases than it has in the past. i'll take a step back. next week we'll be in jacksonville and talking to fed officials. i realize in reading these minutes i have my work cut out for me there are differences of opinion that maybe i wasn't aware of until i read these notes there was a hawkish wing and a dovish wing that may have emerged and that may have come out of the 75 basis point hike and there's a more intense debate on the federal reserve about where they go from here and there's a concern about tightening too much and some are at this maintain, reach a higher level and stay there for a while. there are some differences out there and we have to do some more reporting on this and we'll
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get a big chunk of that in jackson hole >> who would you say has the balance of power and who does the fed represent, steve >> he wants to stamp out inflation and not have it be part of his record as being fed chair of a long and lasting inflation and one that he's, for example, moved to combat and then took his eye off the ball and have it come back. my best guess is that's the way powell feels about it. i will say this, following jim bullard has been an interesting exercise and he says things that are extreme and they end up being the center of the committee and people scoffed at the idea of 75 basis points when he said it and they've done it twice now. what do you think the center of gravity is and where do you think it's going >> yeah. i think the doves -- the hawk, sorry, still carry the day i did say we expect 50 in september, but that doesn't mean
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we expect a lower domino rate. if anything, the risk of potential spending data are that the dominant rate goes higher because the chain for reasoning here is lower inflation on the one hand means less urgency to hike in the near-term and on the other hand it means consumer spending and the broader economy holds off a little bit better that means there's less conflict between the fed's two mandates and so they can keep hiking and the potential that we could see a domino rate of 4% and maybe higher >> i'll get back to you in a second, but aditya, i would like you to explain the thesis. are base cases for a recession to start in the coming months and the risks now are skewed toward a delay or a soft landing in the near-term so if we get a softer landing where the inflation comes down, the economy slows a bit and
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we're just kind of there hovering and what is it? what changes at what point that takes the economy then into a downturn >> so basically the reasoning there would be at some point unless demand slows down, needing to leave the job market keeps chugging along and we get another bout of inflation and this time it's demand driven and the supply shocks that we saw during the pandemic where it potentially fades and the baton gets passed over to demand and that could in a soft landing scenario which is not in our best case yet, but that could push the fed to do more haft year >> by way, if you sean seen, as rick makes the point and maybe yields put in their highs with the tilted, more than expected and golds paring losses.
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fed funds futures, i know yours are different and the odds of 50 are higher versus something stronger >> so here's the deal, kelly i went into these minutes thinking, okay, does the market -- was the market justified in hearing a pivot and a softer fed out of the last meeting? and i actually thought he's minute minutes was more hawkish is there a path with the lower funds rate and a 4% one and there is a path towards a softer landing that is envisioned by some fed officials and kelly, when you ask the question, where is the center of the fed i say yes and i'm not really sure where that is right now and i need to understand that, and you can read these minutes and come off with the more dovish outlook and you can read these minutes and be scared of what the fed will do. >> you can have the market deal,
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would you say? >> i think the big news of the day was the very strong retail sales report >> the surprise was the upward revision to me it was very, very large which it can be brat up quite considerably >> that means erj urgency and that's the way the markets have responded. >> there's the ten-year, 281 and we'll leave it there for now, steve. bringing that to us, our steve liesman and aditya abave from b of a our next guest says experience with metaverse gaming and how to pay for it all joining us is ann with the thread needle ventures founder this takes the retail sales report and runs with it in the
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sense that you don't think the consumer is out of steam here? >> i think it's in segments, kelly and experience is the main one and one of the areas i've been focused on is travel and the other i've been very focused on is things like live music where i've made private investments and you're seeing a rally in live nation where it's been skrafrpcratching and spend on distribution channels and continue to get pummeled in the market >> we still talk about how you're bullish in the industry and walk us from soup to nuts, if you will and where would you kwb betting on the consumer. >> i know i was upgraded and it's relatively undervalued
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particularee, and start doing aggressive m and a with the peer development by now >> it is very specific and a more mature company that's got growth ahead of it the other is roblox and i teed that off in the beginning where you talked about it the metaverse. it is fascinating to me and i went into that too early and lost money in the process of doing so this is one where it's got coming up until now 60 million daily average users just under 50% of those are under the age of 13. this really has been the social media and gaming platform of choice for the next generation of consumer and i think there are ways that this business can monetize that unique insight that it's not doing right now and this is right for an activist to come in and start shaking things up or it can be an acquisition target down the line and watching it very closely. >> wow what about in areas that you would be staying away from
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i mean, these are all pointing in the way of experiences, virtual experiences and is that pretty much the only place that you would want to wager on >> i think there are certain areas that i would stay away from, kelly and it's a lot more about what are these companies actually saying they're going to do to execute in a market that is deeply uncertain, and if you look at what the chatter has been in the market and the run-up to the fed minutes and it's become a lot less over whether there will be a 50 basis point hike or a 75 basis point hike and it's been a lot less of the mystery of whether there's a recession or not and where the market has rewarded or absolutely punished individual stocks it's been where the management team's had or not had clear cut costs and clear avenues that are well articulated to the street and where there is a real confidence to navigate what may or may not be recession or slowdown there are companies that don't
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have the plans and the ones they're staying away from. snap was an example and netflix saw a bit of a rebound and again, where there's no articulation and no plan, this isn't the right environment to be the case. >> talk to me a bit about walmart. >> tyler, this is one you and i talked about in the past and the reason i liked walmart is threefold. >> if you look back at recessionary, consumer behavior and a lot of consumers have tended to gravitate toward retail and one is the value end and the low price and the decent value where we see the walmarts and the targets tend to thrive or the dollar stores where you want the value end and luxury tended to do well. we saw that in 2008 prior. everything in the middle tended to get squeezed. i like walmart is in this economic environment the second piece i like about walmart is they are sitting on enormous amounts of data because there are over 100 million
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americans per week are passing through the doors of the digital reach of walmart there are data there to inform product development and advertising strategies that are just beginning to be tapped and that's in the avenue the third is walmart has shown it is not afraid to have relationships with paramount for on the key plussubscribers it's not afraid to start moving into fin techs and it's got capital allocation decision making and scale no one else can touch. >> you make a very strong case for the behemoth there ann berry, thank you very much good to see you again. >> thanks, tyler. >> coming up, apple up 30% since the june lows and it is less than 5% from its yearly high right now. major wall street firm says the stock can go even higher wye will break it down in today's power rundown. plus, three stocks regaining their long term trend that can
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rally some more. we will trade the following, t-mobile, thermo fisher and aerospace in today's three-stock lunch. you're going to get a lot of lunch here today before the break, a look at progressive and northrop grumman, two names hitting 52-week highs. yes, highs in today'ses ssion. "power lunch" returns in a moment - hiring is step one when it comes to our growth. we can't open a new shop or a new location without the right people in place. i couldn't keep up until i found ziprecruiter. ziprecruiter helps us get out there quickly and get us qualified candidates quickly.
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month, but when you take out gas and autos sales increased .7% from june showing that spending remained sort of stead the shift in spending has been tough to navigate they cleared out a glut of excess inventory which companies are best positioned in this high inflationary environment steve sadov is former chairman and ceo of saks. he's currently a senior adviser to mastercard. steve, it is always good to see you. i don't know if you just heard ann berry talking about walmart and why she likes it she basically looked at the consumer market as bifurcated. low-end stores or bargain, discount stores represented by the likes of walmart or at the extreme end the dollar stores and then luxury and she thinks there's room for both of them to succeed in the current environment and that the vulnerable stores are the ones that are kind of in the middle
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and are neither fish nor fowl. agree or disagree? >> agree, tyler and it's good to speak to you i think ann was right that the middle is a tough place to be and there are some parts of the middle that can do well and the high end and other end will play nicely if you look at a year on year basis we're seeing 10%, 11% growth so the consumer is still spending they're spending differently, and i think that's the important part here which is they changed their behavior during the pandemic and everyone got caught flat footed and you saw it in the inventory numbers and they wrote it down and they took the height and now you'll come into the fall season cleaner and people are people are ordering fresh goods in the holiday season in the better place than they were. >> so let's explore what you just said a little bit forgive me for interrupting and consumers are still spending and they are spending differently.
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i'd like you to elaborate differently and that's number one and then question number two is the where are they getting the money to do this spending? two years ago, last year we know that some of it came from covid-related cash that hit people's pockets where is it coming from today? so first, how are they spending differently and second, where is the money coming from? >> well, they're spending differently because if you look at it during the pandemic, they were spending on their homes they were spending on athleisure and everyone was on zoom just like this. in a post-pandemic world the consumer is coming out and ann talked about experiences and they want to spend on that and they're also spending on fashion. apparel actually grew 17% last month. so apparel is holding up well and they want newness, freshness. brands that are fashion oriented
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and selling the newness. everyone wants to go to weddings and go out to entertainment and that's what's selling and the stuff that sold before didn't sell the grills aren't selling and what they aren't selling and things that they want to do today so you've got to change what you're buying so overall i see behavior in terms of apparel is -- sexy apparel as an example is doing well. grocery is doing terrifically well and a lot of it being driven by inflation. isn't that being driven by inflation? most of it's inflation >> the luxury jewelry is doing well department stores have held up very well during this environment, but things like home improvement, saw it in the numbers this morning and people aren't buying as many televisions do you need to buy so those are the things you aren't doing, as well and even in luxury, it's more of the experiences than it is in products >> all right
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we have to leave it there. kelly, are you getting out much? i have an injured ankle. >> i'm not doing much. >> neither of us are getting out much. >> the important thing we have to focus on is inventory the -- you saw the walmart and target off the inventory and what kind of fresh inventory are you going to have as you get into the holidays and everyone will cut back and they'll try to get their inventories in line and it's important that you have the fashion and the freshness if it's in the apparel space or the newness in other categories. you've got to have that for the holidays i think you'll have a healthy holiday season you asked about where the consumer money is coming from. you still have several trillion dollars offen k incremental savs and the high-end consumer feels good and the bottom quintile, but overall youstill have very healthy spending going on
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especially since gas prices are coming down. >> i have a lot of friends and family going to weddings and traveling. >> people are getting out. >> steve, it's always great to see you. you make me want to go out and shop thank you, man >> stocks are up their post-fed minute laughs -- or i should say they're off their lows post-fed minutes. the dow is only down 83 points or a quarter percent we were down 300 points as the nasdaq was trimming its loss to less than 1% the semi stocks are up 10% over the past month and the group benefiting from the chips act and multiple names still issuing warnings, and the ceo of arm holdings weighs in on that shortly and today's three-stock lunch is still ahead of us names that have not climbed back from bear market lows and still ve mhaore room to grow and there's a preview and sneak peek we'll be right back.
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welcome back, everybody. technology names, fin tech led lower by affirm and bloc it's on pace for the worst day if three and we're still seeing pretty big declines. let's get to dom chu for a cnbc
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news update. >> kelly, good afternoon here's your cnbc news update at this hour. a small museum near new york city's world trade center dedicated to preserving the memory of the september 11th attacks is closing after being the victim of financial pressures made worse by the pandemic the 9/11 tribute museum offered tours led by volunteers who had lost a family member or were connected in some other way to those terrorist attacks. most of the museum's collection of artifacts is being moved to the new york state museum in albany the museum is not to be confused with the official 9/11 museum over at ground zero. monkeypox continued to spread across the globe with cases jumping by 20% over the last week according to the world health organization. inf infections increased by more than 100 cases total across 92 different countries.
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pope francis got an unexpected advisor. during a ceremony, a young boy emerged from the crowd and ran towards the pope francis did not seem to mind the company, though, as the child stood by his side for the rest of that audience it's a pretty big move there very strong move by a child. >> wow that is something. i'm surprised that the pope security didn't jump in there, but anyhow -- >> tackle the kid? >> obviously he was welcome at the pope's side. thank you, dom dom chu. now i want you to listen to the pure cleverness in this. ahead on "power lunch," man u musk be joking man u musk be joking elon musk creating a stir on twitter after joking that he wants to buy manchester united otherwise known as man u we will discuss the controversial ceo along with some other key tech stories in our power rundown next
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welcome back, everytibody
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we have 90 minutes left in the trading session and let's get caught up across stocks, bonds, commodi commodities and an extended rundown. we have bob pisani after the market is moving well off its lows after the minute, bob >> normally the minutes are a bit of a snooze in terms of the move on the markets and look, we moved 15, 16, 17 points on the s&p 500 and yields move down a lot of traders messaged me some lines that they all wanted to see in here and maybe, they got more hope in them and here are some of the highlights in the fed minutes. many concerned and we're talking about fed officials about tightening too much. oh, the bulls love hearing that and also likely to slow the tightening pace at some point. so those are hopium and that will slow down further in the year and eventually the possibility of a fed pivot in 2023 and the s&p 500 is moving up here. in terms of what's moving
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throughout the day and retail is doing well and sectors that have gotten big moves up and they're down a little bit today and arc innovations had a tremendous run. the transports have been on fair and even the small cap russell 2000 has been on fire and a little bit of understandable profit taking here in terms of retail, some retail is down and not as bad as feared with the retail names and we have target with the previous forecast lowe's optimistic for improving do it yourself trends and full-year earnings at the high end of expectation and look at tjx and that's one of the bigger gainers on the s&p and 94 cents, the company said and that's right in line with the expect eggs an expectations and remember these stocks have had really good runses >> look at that. the dow is only down 30% and we can go positive.
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let's get to the bond market where yields are also putting in i guess, stocks are putting lows, rick and the flip side is that they're putting some highs. there's been a lot of things cross-current trading going on in treasurys and let's keep it simple if you look at the intraday of 20-year bonds and you'll see it pop a very messy auction on 20-year bonds and as you look at interim two-year note yields look what happened at the top of the two. when the minutes were released there was less than a minute for the buying that came in pushing yields back down, and i think it makes perfect sense becausethe market has been per right than wrong over the last couple of months the market sensed the slowing that the fed underscored in the minutes to the last meeting and yields will be down. as a matter of fact, as you look at the two-year note chart the yields are moving down and they're moving down faster in the long end so we're seeing bulls steepening and that's always important and the price
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going down, yield curve is steepening and if you want a yield curve to do anything in the cycle and you want it to be steepening and the prices go up. finally, overseas set the stage more than anything today look at the boon chart, and they close at a one-month high yield today. just shy of 110 and look at the guilt in the uk as their inflation topped 10% they closed gilt at a two and a half-month shy of 2.3% and that will have influence, ongoing influence in u.s. markets. kelly, back to you. >> thank you very much rick santelli. let ate turn to oil now which has been selling off sharply pippa stephens has it for us >> oil is in the green on the back of a better than expected inventory report and stockpiles fell by 7.1 million barrels last week which was much larger than analysts expected.
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gasoline inventory dropped by 4.6 million barrels and much of the recent weakness is thanks to concerns that demand is slowing. did i also want to mention that u.s. oil exports at a record 5 million barrels per day. let's check on prices, wti up 2% and brent crude up at 93.69 and natural gas is closing at the highest level since 2008 in yesterday's session. otc global holdings faulkner said prices aren't going remain elevated even as temperatures cool because gas is being diverted from storage and going to l, ng cargos from europe and asia pippa, i don't know if there's any protocol for dictating whether that should be going into storage or being exported or whether that's the kind of thing that could still be coming down the pike some day
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>> we'll see right now there are high prices for these lng cargos going to europe and asia. we're seeing new lng plans in europe and no doubt, if prices remain elevated here there will be some administration officials looking into it. >> absolutely, pippa our pippa stephens let's extend our power rundown beginning with elon musk tweeting that he's buying manchester united. this is a publicly traded stock and hours later he says he's joking and more than ten times the amount of options have sold compared to the ten-day average. also, bed, bath & beyond shares bouncing once again as their volume surges and apple's surging with credit suisse putting them on a two-for-one. let's bring in sarah fisher from axios. great to have you today. let's start with musk and you have to ask the question at this point s he -- did he know it was
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publicly traded and is he trying to poke the bear at this point >> i don't think he cares. i think he cares about being a part of internet culture and right now a lot of internet culture that you're seeing is people who are frustrated with man u's ownership and they haven't had a great season for a long time so he wants to be a part of the conversation i don't think he cares that much i think the last time he got in trouble for a tweet like that in 2018 the sece sp essentially sld him on the wrist he is not worried about the consequences of this tweet. >> so he doesn't mind if he gets slapped the wrist or worse >> no, he doesn't mind at all. elon musk right now is really focused on being the internet culture meme king that he is, and this was a joke that he thought was funny, so he wanted to put it out there and rally up his fans he doesn't worry about what the sec has to say
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>> he has an interesting sense of humor bed, bath & beyond belief. this stock is a rocket ship and it goes up like 92% week to date, that would be a lot. how is that possible where does that money come from that can catapult or is it simply that the float of shares is so small that it doesn't take that much money to send it to the moon i'll tell you where i don't think it comes from and this is retail traders moving that fund and you do have some retail traders from wall street bets trying to get in on it, but i don't think this is the same thing as gamestop. i think this is more institutional, but you're right when you call it bed, bath and beyond and it's the latest example of the meme stock and
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it's kind of going at it alone right now. we had amc last year and it's a bunch of them and we vrpt had it for a while and it's interesting that bed bath & beyond has it. >> any reason why that's true? >> the person who has that vested interest in it, and they had a position in bed bath earlier this year and there were a number of outstanding shares that made it look like his position was more inflated recently and that could have sparked the retail fervor as well as hedge fund movement, but other than that it's along for the ride >> let's move along with apple, sarah, which has been an incredible story and down at the lows and the 130s and has been leading the market down and leading the market higher and now you've got to split. you have some like carter worth the technician saying sell it. and you have daniel shay saying
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chase it we spoke to dan ives, and he says it's going to 200 and not looking back yeah i tend to agree with dan ives, they expect iphone sales to continue momentum would make me bullish on apple's stock right now. the concern with apple, thof course is the reliance on manufacturing of china would impact sales because of supply chain issues there and clearly there hasn't been as much of an issue with demand. i also think with apple that's notable is they're very cautious about how they talk to the street you'll recall in april they warned that some of these macro economic issues might impact their stock. take a look at what happened when investors saw that it wasn't as bad as they thought and it was awarded apple and the momentum is still there for the company. the concern for apple if you want to take the bearish look, obviously, foreign exchange
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headwinds will continue for a company like apple and they also said they were impacted in the services business and things like advertising, and the macro economics impacting advertising. i think apple is on its way to 200. >> all right >> no further questions, your honor. >> sarah, thank you very much. we appreciate your time. >> still after the break, kristina partsinevelos sitting down with the ceo of arm holdings they'll talk about the struggles that have been facing the semispace this year and what if the chips act will help to ease shortages and underpin a new bull market. we're back in a moment yeah, let's redo the basement. hello home movie theater. (laughs) spare bedroom. why not both? use the u.s. bank mobile app to apply for a home improvement loan. it's easy! .wonderful alex! hey, that's what u.s. bank is for. anything else? how about a loan for a bigger car? our family is growing. awe. yeah, my brother's moving in with his five dogs.
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welcome back to "power lunch. the nasdaq worst performing so far, chip stocks are the reason why the mshatf down, you can see the losses of 3% or more there on those stocks including micron, texas, microchip and analog kristina partsinevelos joins us now with a look at what she's
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been hearing. >> that's right. i had to come here to san francisco and we've heard company after company nvidia warning about the slowtown in consumer electronics and the supply glut which is why it's been so important for them to pivot with auto, industrials and data centers, but data center, i think those big computer and storage systems that are found in your company offices, they're starting to show some supply snags. nvidia warned about supply issues such as longer lead times and that's the time when the chip is ordered and then delivered, and i was in nvidia's camp and an engineer was chatting with me and he's struggling to get his hands on chip power for artificial intelligence systems and earlier this morning i spoke with the ceo of arm and the company that provides the chip blueprint for over 90% of global smartphones and he echoed nvidia's comments on data centers. >> we certainly are impacted by anything that we see on the
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supply side and in data center particularly, we have seen supply issues and not just for the guide themselves and what it goes into in a custom package and certainly, we are in a supply constraint in the data center >> as for the market reaction specifically today, analog devices is the drag on the semis. tyler, you mentioned that briefly. it's down almost 6% and this although the analog chip provider issued strong guidance, management did say cancellations were starting to increase so the cyclical nature of -- are definitely still in play >> so softbank owns a chunk of arm and that's a bad metaphor and right now softbank could use a win. it's been pushing for an ipo what can you tlls? >> so softbank's vision fund owns 25% of arm. arm is a uk-based chip company it's massive and it provides the blueprints for a lot of mobile
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phones all around the globe and originally softbank said that they would do a dual listing in london and new york. just a month ago, softbank said they would halt the london listing because of the drama within politics in the uk and so i asked rene, the ceo of arm specifically about this and he said, this is just salomon smith barney i'm reading too much into it we are in the process right now and he can't comment anymore which mean the nasdaq could still be in the cards and it would be one of the biggest ipos that we've seen in a while especially given how tough the market is. >> kristina, enjoy san francisco. >> thank you hard not to. >> grab a jacket coming up, three-stock lunch is live in in person. ty, we have a special visit from jeff kilberg, and he will join us in studio to share his top picks right after this
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welcome back time for today's three star lunch. some former high flyers regaining momentum trading above their 200-day trading average and not only do they have a majority buy rating on the street but analysts see upside of at least 10%.
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from here our list today t-mobile, thermal fisher and helmet aerospace here live in studio to help us trade them cnbc contributor jeff kilburg from sanctuary wealth. t-mobile is one you only personally and i think you like. >> you do. if you are not familiar with the pro scanner, we use a lot of these themes to understand where there's strength, conviction, where there's actual chart conviction if you look here on the chart it's interesting to see t-mobile which has had a lot of recent attention from dan lobe at third point, how the buyback in the end of the year, this may be a $60 billion buyback. if you look at the big three, at&t and verizon, this is absolutely the superior one. i want to be a buy despite the fact it's not cheap trading at 30 times forward earnings in conjunction or compared to at&t and verizon. it does seem expensive but you
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get what you pay for >> it does seem as though this company, which used to be number three, if number three -- >> correct >> has now come up into that top echelon. >> you bring up a great point. they actually bought sprint, so this is the digestion. look here, ty. this is really interesting, you've seen the strength if you look at the chart here, what does this mean? you have the 50 day in purple. once you get that relative strength above, that's the all clear for a lot of institutional investors that come in i like this chart. i think it's interesting to see the technical strength and this is a name i want to buy. >> let's move on to thermofisher that we don't often talk about >> a massachusetts-based name. when you think about it, you think global this is a global exposure what is interesting here on this chart is this is another buy and when you talk about this is a cash cow this is an under the radar name. you don't hear a lot about it. it's had a nice performance. when you look to its peers it
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has outperformed what's interesting enough about the lab equipment, the global exposure they have, is they're continuing to make money the way they make money, we don't talk about that. we talk about bed, bath and beyond last week, companies that don't make money this is a company that makes money it prints cash therefore, that's why i like thermo fisher. >> printing cash is a good thing. helmet aerospace >> i'm not going to kill this stock. it's done tremendous this is defying gravity compared to the other sectors. this is an aerospace winner. what i like better, to be honest, and that's why i'm putting a sell on this, kelly. not so much a sell that we want to take profits. lockheed martin, it's about ten times the size we saw $100 million jump in income this is a name you can own as well
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>> up 20% year to date it no mean feat for anyone >> this is a small cap it's a $16 billion market. very different >> $16 billion, not a micro cap. >> in the small cap bucket >> jeff, you're going to stick around for more stocks with positive momentum, visit and up next, what the latest open table data tells us about the american restaurant recovery when "power lunch" returns
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welcome back, everybody. after two subdied summers, americans are getting back out there this year, traveling and eating out the pace of recovery isn't the same everywhere. dominic chu with a look at what the data is telling us and jeff kilburg thought he'd join the table. >> here is the thing because i know killer is a big traveler, you're getting out more, seeing more of what's happening in america. anecdotally speaking one of the things you want to look for is how much more of that travel and leisure activity is back and how much more people are getting out to spend money we always look for data. there's alternative data that can tell us the story. open table reservations for people going out to dine at restaurants. they have a robust set of data for the month of july this year versus the month of july back in 2019 prepandemic, these are among the metro areas that have
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seen the biggest jump in diners. see if this jives with what you're seeing anecdotally. las vegas, massive move higher on average 36% gains over the same time in 2019. miami, florida, austin, texas. nashville, tennessee all amongst the biggest gains in restaurant usage take a look at this, amongst some of the places you have not seen as big a recovery it's very large metro areas. minneapolis, minnesota -- not massive but, still, down 54% in july >> wow, that's a huge drop >> san francisco down 46%. seattle, new york, washington, d.c. an interesting story developing whether people are going back to restaurants in the big metro areas. >> this is versus 2019 >> jeff, any hypothesis? >> i think this is amplified talking about the dislocated reopening.
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you talk red and blue states this is evidence at the end of the day, i slept in nashville last night, what's fascinating, yes, we're reopening, but at the end of the day this is a positive development >> keep an eye, though, if you are a traveler just watch. use your own mind and see what you think. >> thanks very much. appreciate it. >>ed rally didn't materialize. couldn't hold the gains. thanks for watching "power lunch. >> "closing bell" right now. the stocks looked like they would come back after a 300-point loss but we are on a down swing the dow turning positive after being down 300 points, the most important hour of trading starts now. welcome, everyone, to "closing bell." i'm sayra eisen only one sector that's positive right now and that is energy everybody else is weaker not extreme. consumer discretionary is your worst performing group


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