♪ ♪ ♪ welcome to "power lunch," alongside kelly evans, i am jon fortt. stocks are off the best levels of the day with the exception of the dow which is at the day's high thanks to salesforce and chevron. the s&p 500 and nasdaq both touched records earlier in the session before dropping. the nasdaq just might snap a

seven-session winning streak here. nvidia had something to do with that and they've also hit a new record before pulling back and they were down 2.5% and giving back the market cap leadership back to microsoft. other chip names are rallying today and it was named the large-cap pick for the second half of the year by piper sandler. let's begin with more on the market concentration into just a handful of big tech names and some leveraged etfs and not much else. kate rooney has more on that trend for today's tech check. kate? >> individual traders have been underparticipating in the market lately and the turnover for this group which is total buys and sells is at the lowest level we've seen since before the pandemic and that's according to the data. they are concentrating in just a few pockets and you have the mag 7 nvidia and the turbo charged nvidia plays with semiconductor etfs and it shows roughly 29% uptick rather in purchases of the mag 7. it's a percentage of total

trading. this is an increasingly crowded position, guys, according to bank of america's global fund manager survey and it is now the most crowded trade on record. retail traders are over indexed to nvidia and the most widely held name topping apple and tesla you can see there and owning nvidia. they're looking to amplify the upside and the potential down side and you can see the dynamic with the popularity of the long levered etfs and it's a two-times nvidia leveraged fund. 4 h 400% and the three times leverage of the overall sector and all of this leverage tends to amplify the downside as well and right now the narrow strategy is actually working. retail has been outperforming the s&p and there are risks in being so heavily indexed and the whole ai story and all of this retail interest is resulting in growing short interest, as well which could add to the volatility in these gains, guys?

>> i would like to get in on that. 500%. who is not sitting there thinking, gee, that's easy money and free money. now what? that's the $3 trillion question. >> right. it's reinforcing, kelly, like you said. you can sit there and sit back and say i'll use the whole 60/40 strategy and take the boring investing strategy long term, but for a generation who is relatively new to this market might be driven by a little bit of fomo sees that and it's reinforcing when you're up a about the and you're beating the market and the long-term outcome with those with investing experience and longer time horizon would say that's not the long-term investing strategy, but in the near term it's reinforcing and people see the win and see how well nvidia is doing and they want to amplify the upside and that's the real dynamic here. >> i'm just glad it's in the s&p and 401(k), okay? >> even if you don't want to be

indexed, you kind of are if you just buy the index. >> kate, thank you. we appreciate it. kate rooney. how is it that the market gains are so heavily concentrated in big tech? let's ask sarah malec. what do you make of all this? welcome. >> thanks for having me. we've got the nasdaq up almost 20% and it's up for eight days in a row, but one of the reasons tech is doing so well is because economic data points is slowing and tech stocks tend to be less economically sensitive. however, looking at all of this, the technicals and the flows into tech does make them look overbought in the short term. the relative strength indicator shows that tech is overdone at this point. so i wouldn't be surprised to see a shorter term pause and we wait until the next catalyst which is earnings and if tech drives second-quarter earnings like it did with first quarter that's arnother support for tec with everything else. >> earnings per share growth in the first quarter was up 84% and

for the rest of the s&p stock it was up 5%. i almost feel bad for the professional money managers. what do you do? is it prudent to take client money? let's make sure we're not overexposed to something that can massively correct and if you sit out of it, then you can't show the gains and you can't afford to do that, either. >> given the structural tailwinds against artificial intelligence with the companies that you can invest in like nvidia and microsoft in order to take advantage of the ai trend, i think there will be a lot of demand for these stocks going forward and it's imprudent to balance that on the other side and look at the sectors and maybe it's not as exciting and reits who underperformed in two years with rate pauses and they're cheap trading at a discount and emerging markets which are starting to perk up in certain areas and you'll get those like india now that the elections are moving behind them. these areas that you can find valuation and support in order

to offset the premium to pay when you were in tech. >> sarah, how much is the overall market and market sentiment dependent on nvidia now given what we heard from kate rooney about the leverage that many investors are placing on that. it's a very large stock in the market and it's heavily represented in the s&p 500 and it reports before the bulk of tech, and i believe august can expect new numbers from nvidia. >> nvidia is becoming the tail that wag the dog. the interesting thing with nvidia is it is not expensive and it's trading at a discount and it's not a stock that people -- it's not a stock that you're paying a lot for. that's why there could be more upside given the limited supply of ai stocks. let's look at another stock of tech that has been heating up so much year to date. it is up 50% year to date and software, basically flat and these are areas where you can find companies that have good

fundamentals like snowflake which is a decent ai play. software is a place where we can pick through the carnage and find good stocks. >> that was one of the unexpected losers from the rollout of the software and maybe you and jon know more about this than i do. can you explain is it warranted or not? can you integrate ai tools where it makes people feel more secure at work and it seems like a boon and maybe it cannibalizes it. >> snowflake which is cleaning up the data that we need to use and therefore within the ai industry and also their fundamentals were still pretty strong for the first quarter and some of the best revenue growth we've seen in quite a while and there are these other companies that people are overlooking and it is a big benchmark name. for portfolio managers that were not invested in some of these ai stocks they're losing if they cannot get to unusual or overweight in the stocks like nvidia and microsoft. >> plus, we have this unusual bifurcation, i think, in software where small caps are really suffering.

usually when you see some of these big, new, jen rageneratio shifts in software and they're getting the benefit of that and in this case we see the hyperscalers and semiconductor names getting the benefit and some of the smaller caps are suffering because of what's been happening with the fed. what turns that around, potentially? does it have to do with the macro data that we get and i'm talking software overall with the smaller cap names in particular or is it evidence that there are winners emerging in this ai race of the smaller size. >> i think there are two things to consider with what's going on with small cap. first of all, this tech cycle is different in the sense that the large companies spent tens of millions investing in artificial intelligence and they got such a head start where there were these small companies popping up left and right and we're trying to getinto the internet and eventually failed.

small caps when they tend to outperform in a cycle and it's where we're coming in a recession and we're seeing early signs of a recession coming. when i want to own small caps and we're just not there yet since we're just seeing early signs of a recession coming. >> sarah, we appreciate it today. thanks for your time. >> thanks for having me. >> sarah mally. so far in june technology has been the best performing s&p 500 sector up 11% while utilities is the worst group down 4%, but with a lot of the country experiencing a heat wave could utility stocks heat up, as well. pippa stevens is here to tell us. >> more than 100 million americans are facing extreme heats and when consumers turn up their acs that could be good for utilities since they sell more power and that translates to higher revenue and earnings although there are some of caveats based on which state a utility is in. one group that could do well here is the independent power

producers or ipps like cons tla constellation and talent and they sell into competitive markets and so when demand rises and power prices are higher they make money and while extreme heat might not have an immediate impact on regulated utilities, longer term it's yet another strain on the grid which helps utilitieses case when asking regulators to approve higher rates to pay for more capital investment and with ai driving power demand bobby who manages pgim jennisonutility fund the fundamentals have never been more positive. it's been seen as a bond proxy and things are getting more interesting here. >> what about blackout and old grids. you have the supply of power to satisfy demand and that's good, but what if that breaks down? >> so far we haven't seen cases of rolling brown outs or

blackouts just yet and utilities are not focusing on demand and response programs and i'm in new york and i have con ed and please don't use a heavy load between 2:00 and 10:00 p.m. and we're trying to shift the heavy energy users like yourwashing machine and the dish washer and things like that. so that's been a big initiative to get consumers in front of it and in some markets it will reward you and lower your utility bill if you do shift your load and then again, we're only in june and temperatures do rise into july and august. so so far right now we're okay, but that could look very different. >> people are tying together the rise in heat with the rise in utility bill, but the utility bill increases we're seeing is from the russia-ukraine war a couple of years ago. can we look to some relief because gas prices have been very contained. >> that's on the fuel side and we have to remember that more than half of the bill is on the

operating sun and it's to run the wires. last year we saw 18 billion worth of higher rate increase requests from utilities that was the third straight year of a record and with all of the stresses on the grid i don't think we'll see lower bills any time soon because it is the other portion they have to invest in and they have a lot of capex and that's what they earn that rate of return on. >> dish washers and cars. you have to charge your car. >> exactly. that's a big one. >> a lot of people do. pippa, thanks. speaking of, sales of new electric vehicles are slowing and sales of used ones are charging up. we will dig into why and speaking of electric updates our own robert frank who will be live from marinello tomorrow from ferrari and tune in for the exclusive interview with benedetto vigna. we'll be right back.

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welcome back to "power lunch." the dow is up 340. while that's what carvana ceo ernie garcia told us when he joined us early this month. >> we sell disproportionately high sales of evs and the entire mix of customers whether it's age or income or any demographic mix that you look at, but we do skew a little bit younger, a little more affluent. >> among the reasons why ev sales are soaring, an average used ev sells for $36,000 while

a regular used car costs around $32,000. joining us now to dig deeper into this trend is erin keating, executive analyst at cox automotive. erin tesla cut prices moments ago and you see the lots full of undriven, unused teslas. which is the chicken and which is the egg here? people can get used cars for less so they're not buying new cars so they're cheaper and how do you think it ends? >> you know, i think it's a mixed story, actually. we have to remember just in 2021, we have less than half a million evs sold in the first place and we have evs entering into the market and they were dominating the market and we're seeing mostly teslas because that's what's available in the supply for used evs.

so i think it's becoming a usable option for consumers and it's a tax credit right now and that's helping them pull down the outlay of cost they have on the used ev. it's a mixed story and a mixed bag, but we see the cost parity is driving more sales of evs over a used car. >> how does the lease market fall into this? i think i saw an ion 6 where you can get it less than $3,000 a month, i don't know why i would buy a used ev if i could lease one for that price. >> it's a tale of two stories and it's helpful and driving down the price for the evs and another good news about that is that we will have a better supply of used evs coming into the market two or three years in it, as well and it's good,

affordable options from a leasing perspective which puts downward pressure on the used price, but it allows us to see a steady supply starting to come into the market as used evs and making that transition easier. >> i wonder if they're about to inflect lower. traditionally a used car $32,000 and evs $34,000 and they might be dropping in price and one interesting point a lot of people who bought one has buyer's remorse. charging is more difficult than it was before, anxiety and things like this. this transition will take time and the industry needs time for consumers to catch up with supply and they need to be understanding where the infrastructure is and they need to go down the street and charge and have a good amount of range, and you know, we were seeing at manheim, a lot of used vehicles coming in and they were going through the industry first and

vin-specific battery health score and the good news is we're not seeing a ton of degradation on the batteries and it's a good thing for the consumers to know hey, you can trust the batteries that are coming up with the cars and for the most part they're holding up really, really well. warranties will hold up and you can make sure oems will be good. i think as things continue to pick up woo will continue to increase adoption. >> what about the map or the buyer on buyers have us lease versus buy new or buy used. it seems like it might be different for ev because the conventional wisdom had been you buy a car and keep it for ten years and then it's a better value than leasing. >> sure. >> but the technology is such a key part of an ev. is it different? are you just going to get less on trade-in or resale value in the future because the

technology will have advanced and the demand won't be high for the vehicle you've got. >> sure, that's something to consider because when we think about getting a used call it a bmw or mercedes or honda, we're thinking three years' generation, doesn't really change dramatically the car that you're buying and the ev, there is this pent-up fear that hey, if i'm buying a car that's three years old am i missing out on the technology. a lot of what's happening on evs is honestly more about mass, shape, size, giga casting that you hear from tesla and making the cars more aerodynamics so they can go more longer range and so forth, but i don't think that the technology is going to change so much that you won't have people comfortable with the first and second generation of the evs that are coming out now. >> all right. either way, you're taking a different kind of gamble, i guess. >> you are. >> whether you buy new, used or leased. >> erin keating, thank you.

>> sure. on the plus side is gilead sciences. the stock is surging on a phase 3 trial that shows its hiv drug showed 100% efficacy in prevention and shares are up 8%. on the down side, trump media. the shares are down as much as 15% on news the, is sec approved shares which would provide the company with more funding. ahead we'll discuss on the moody's assessment on what happens to the economy on whethebin r deor trump gets elected, but first, a quick break. stay with us.

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welcome back to "power lunch." let's get a quick check on the markets where the dow is up 1% as we were discussing by salesforce and chevron today. the s&p fighting back to positive territory, and it was down three and it was above 5500 earlier and the nasdaq is down half a percent. bond yields are slightly higher after the latest economic data which is a bit weird, rick santelli which wasn't that great unless it was an aftershock from the cbo numbers this week. >> you nailed it. that's the whole point of what i'm going to talk about is how counterintuitive today's data is to reconcile with the market

activity. if you look at continuing claims, they claim out at 1.828 million, okay? but here's the thing. continuing claims are not only at the highest level in over two and a half years. we now have the second monthly reit at 1.8 million. if we look at the rest of the data points today, not only claims. look at housing starts and diane olick's been talking all about housing starts and breaking them down, but on a quite simple level that the lowest seasonally adjusted annualized pace in four years, now look at twos and tens. we hit it when the data hit and that makes sense. what doesn't make sense is how the rest of the session went and we started to see rates move higher and granted, they were about middle of the range and what we have done is we closed that gap to some of the rate drop we saw on tuesday with the weaker retail sales. remember, we have an anecdotal

slowing economy. we have lots of new evidence from the continuing claims that the labor market might be losing its grip on some of most intense labor conditions to the bright side that we've seen in decades. is it weakening? but along all of that we also have issues with debt and deficits and no matter how much pushback we get from a political administration that's involved in an election year, this is something that continues to be a big deal especially weeks when we have supply and as for tomorrow, we don't have top tier data, but which side 4.25 to close at could have big ramifications technically. jon fortt, kelly, back to you. >> rick, thanks. we can scratch our heads over that for a while. for now, let's get to contessa brewer for a cnbc news update. jon, the first named storm of the season has weakened from a tropical storm to a tropical depression. alberto made landfall this morning in mexico bringing heavy

rain and flooding that local officials say killed three children. the national hurricane center warns even with the downgrade the storm will bring intense rain to northeastern mexico today. new york governor kathy hochul is moments away from signing a first in the nation bill that requires social media companies to restrict intentionally addicted algorithms for users younger than 18. this is set to take effect in 180 days after new york's attorney general sets out clearer guidelines and social media companies have raised concerns about potential free speech violations. and the ncaa reportedly pitched a plan to division 1 conference commissioners to expand march madness. according to the associated press, the proposal would add four or eight more teams to the lucrative men's or women's basketball tournament. the plan would give the traditional 64-team bracket and would add play-in games for the ten to 12-seed schools. it could be really exciting. >> more money in the ncaa and

more games. still ahead, go with the flow. shares of insurance giant progressive up more than 30% this year and our trader thinks there's still more room to run. we will get his thoughts in three-stock lunch next. the future is not just going to happen. you have to make it. and if you want a successful business,

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♪ ♪ welcome back. it's time for today's "three stock lunch." since tech and growth names like the mag 7 have been dominating markets lately, we asked our trader to go somewhere else. we don't want to hear the word nvidia once in the next five minutes. let's talk to michael lansburg with private wealth management. thank you for joining us along this ride. let's talk with tiedwater. it is up 33% this year and you think it's a buy? >> i do, kelly. it's the largest offshoer supplier and it's a support vessel for some of the big major oil companies and you're seeing ironically there's an aging fleet. it's tough to get new, big

vessels built and we're seeing capex kind of blow up a little bit because you'll continue to see the demand for energy and electricity. i won't mention the "n" word, but ai will continue to draw big money into energy and electricity. >> oh, no. there's a play even in tidewater here! >> i think energy is one of those overlooked places that i think, you know, it's ten times the level of power to be able to do an ai search than it is a straight google-type search and where will you get that energy and power and you'll look outside the ai direct stories. >> all right. i can say the "n" word, but i won't because kelly said we won't say it for five minute. up next, shares of progressive which is up 35% this year. this one isn't so under the radar. >> it's not. part of the issue here is we hear inflation and everyone was excited when inflation touched down last month. auto insurance is up 20% year

over year. if you don't like inflation why not people make money with inflation and we like the story and they're disciplined on their underwriting and they're very focused on what they do. a lot of margin there. you have to have auto insurance and the prices keep going up and up and up and to me, that's an area where inflation continues to be sticky or move higher. this is a name that will do well, should continue to do well. it has done well and it's one that's under the radar from the standpoint that it doesn't get the attention of the average investor. >> i take your point, though and the fed's watching, too, believe me. let's move on to crh up 10% this year and it's respectable. why buy it? >> it's an infrastructure story. it's originally an irish company and they've got a u.s. offering and made it more of a u.s. play, if you will. half your business is u.s. and if you look at the infrastructure in the country and you don't need thesis and we

have a lot of potholes and bridges and a lot of stuff that needs to be fixed in the country and theoretically, it will be put in play for businesses like this. we need roads and infrastructure and it's a way to be able to play where money has to go and w we're seeing that with xaccidens and infrastructure and this is a good way to be able to play it and not a dividend story and obviously, a name that has half european exposure and half exposure. >> michael, we appreciate it. >> still ahead, opting for paper over plastic. amazon going greener with its packabling. diana olick is live with the details, diana? >> jon, we will answer the burning question what protects your stuff better? this or this coming up next on "power lunch qwest ".

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♪ ♪ welcome back to "power lunch." amazon is taking some of the air out of its packaging in an effort to reduce waste and lower its carbon footprint. diana joins us from an amazon fulfillment center in baltimore. stay with us. diana? >> jon, after extensive testing with consumers and third-party analysts, amazon is making one of the most sustainable issues to date and it's saying good-bye to plastic and hello to paper. >> recycled paper is replacing the 15 billion blastec pillows used every year. >> they're difficult to recycle because first of all, you have to pop them. >> you have to pop it. >> paper may also work better

than plastic. >> this paper's easier to recycle and post-industrial and post consumer and recycled content and that allows the items to cushion in there rather than bounce. >> in addition to losing plastic, amazon is using ai to right size its packages by eliminating empty space in boxes. it's an investment across automation and investment across t material science as well as artificial intelwens. we asked how much this would end up costing amazon. he wouldn't say exactly, it's less than, and it allows amazon to bring down the cost difference between the two, but i've got to say, going to miss that satisfying pop. am i right, guys? >> i disagree. the big pillows are too hard to pop versus the little ones that have the little pop, pop, pop, but i've been getting the paper packages in my amazon deliveries

for quite a while now. so i get the sense they've been piloting this for a while and they must have a huge impact on overall plastic consumption given how much they've consolidated retail spend. >> right. they started this a while ago, to be sure. they are 95% there with the plastic pillows and they just wanted to announce it when they still had 5% left and by the end of the year all of the pillows will be gone and as of now, most of them aren't and they're still working on the plastic envelopes to transition those to paper and we'll have to wait. that could be more next year. >> they're annoying and i can't quite get them open on my own. diana, we appreciate it. diana olick reporting. coming up, a political tipping point. former president trump's pitch to ease taxes on people with their tips certainly created a buzz, but is it moving the needle for blue collar workers and is it feasible? we'll discuss. cnbc is celebrating pride month and here is mac cosmetics global

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♪ ♪ welcome back to "power lunch." we are one week away from 2024's first biden-trump debate and this morning we got a new analysis from moody's analytics about the impact on the economy depending on which candidate wins. megan cassella is looking at that report. megan? >> hey, jon. so the big takeaway from moody's is trump's policies would hit the economy much harder initially even bringing a recession by the middle of next year, but recovery will come swiftly and it will be higher under trump by the end of the term. either biden wins and congress stays divided or trump wins and the republicans sweep congress.

in the trump version the analysis assumes that he follows through on plans for widespread tariffs and an immigration crackdown and both of those would drag on the economy. so half way through the term the forecast shows much lower gdp growth under trump. core cpi would be higher. the unemployment height is a full percentage point higher and debt is rising faster and the fed is slower to cut rates and then there's a rebalancing and by the end of the term the economy is growing faster under trump mostly thanks to corporate tax cuts although those cuts have also driven up the debt. inflation and unemployment are still lower under biden and the gap has lowered from earlier in the term. take a look at corporate profits. they fall more than 7% initially under trump in the first year and it's a little bit surprising given his cuts to the corporate tax rate, but the analysis says that those cuts, plus his tariffs would drive up inflation and interest rates. on average, though, growth ends up about equal between the two. so it might become a choice

here, guys. would you rather have a slow and steady growth economy or a hard hit and then a rapid recovery? >> do we know what the credibility of their take on this from the past? >> we don't. moody's has been strong on this and it is led by a economic adviser. it's a rigorous analysis, some 30 or 40 pages here and they dive deep and they're also looking at any number of personal income and anything else. so they're a soupssuming the candidates follow through and we do know that history that donald trump likes to follow through on what he promised and they're analyzing as best he can. >> he likes to? okay. it seems like a lot of guesswork that they have to do for something like this especially given the amount of surprise that we've had about the resilience of the economy and the stickiness of inflation and also the continued spending of the consumer, but it's hard to factor in, isn't it, megan?

>> absolutely. economists have to be a pretty humble bunch. they have to recognize that there's been a lot of wrong predictions over the past few weers in particular and especially with these two candidates and there are multiple outcomes right? they're assuming in these two scenarios that trump, for example, has unbridled power if congress flips republicans as well. they're in the main scenario assuming biden does not have that same power because congress stays divided. there are a lot of different assumptions and they'll look at the other outcomes, too. they're doing it as best they can and they assume that they're following through on these promises and that congress doesn't step up and get in the way, that the fed doesn't really break the rule book or throw the rule book out the window. so there's a lot banking on this and it shows us, maybe what we're going to get. >> thank you, megan cassella. there's one part of trump's campaign that's been getting attention and that's the tips from getting tax. could it be a plan for luring in

working class voters. let's ask the secretary treasurer. have taxesips ever been exempt taxes before? >> i was a tipper and my parents were tippers and the reality is we've been fighting against unfair tip taxation for over 30 years, but the courts have ruled the tips are income, so the idea that somehow we'll get out of taxes on tips is just kind of silliness and just -- and that leads to kind of the problems with trump's again, it's a wild campaign promise really, is that for four years when trump was president me really didn't help any tip earners at all, and since he's been out of the presidency for four years we haven't heard a peep from trump about helping tip earners until

now we're getting close to the election. >> let me put it this way, nevada is an important state politically, and there's a senate race that if it went republican it could have ramifications. if he did this eaven as a political gesture, what would be the impact? >> getting passed a wild promise to get to reality, and the second part, nevada is incredibly unique. there's no concentration of tip earners anywhere else in the country like there are here. every other, all the other 49 states most voters believe that, you are know, tip earners should pay their fair share just like anybody else. you will not hear trump make this promise anywhere else in the country except in nevada. hoping that some folks will fall for it. but in reality, we've had senator harry reid a staunch advocate for fair taxation. senator catherine cortez masto,

democrat, went after the outgoing irs commissioner on capitol hill. congressman stephen hoarberg sat in negotiations with us at the table with the irs. so the problem is that not only is it unobtainable to get rid of taxes on tips, you're never going to hear trump even make that promise in any other state other than nevada. he will never even be able to bring it forward. what we have is real policy to try to reduce unfair taxation, and just the last thing i want to say, i know you want to have questions. it's that this causes more harm than it does good, because the inference, and every other state, that tip earners are tax cheats and don't want to pay taxes on their income. tip earners are not tax cheats but against unfair taxation. willing to pay tips. fight for 60% tax reduction on tips during covid and we got, from the administration. >> nobody likes to pay more

taxes than they absolutely have to. i believe former president trump will be at the front of that line. tell me, what's been the impact of tipping shifting over the last generation, say, 15, 20 years, from probably a bit more cash to more digital. therefore, more trackable and more taxable? what's the impact that you see? >> well, if you work in restaurants, it's clear. 80 to 90% of all tips are paid by credit cards and absolutely trackable. the irs has developed over the last 30 years and we've been in negotiations for 30 years with the irs, in las vegas of a tip allocation system. and as i sewed before, we were able to negotiate ups and downs during the, whether it's the recession or covid. the problem the pendulum has swung the other way and we think it's unfair now and we need relief, but this idea somehow we're going to make an argument that tips shouldn't be taxed,

that was lost in courts 30 years ago and it just, again, produces the idea that tip earners aren't willing to pay their taxes. that's just not the case. >> ted, trump has also proposed doing away with the income tax altogether. how do you feel about that? >> well, again, there's an old saying about death and taxes. it's just silliness. you know? the defense of this country is required to, can only happen with us paying four fair share of taxes. it's very rich, somebody like trump talks about doing away with taxes. a problem, irs spent less time going after working folkslike us and going after rich billionaires that don't pay any taxes like trump that would be kind of a way to go, but, look, trump supporters don't want to hear that, because that's president biden's program, by adding fire power to the irs to go after billionaires that don't

want to pay their taxes. >> i take it from your comments you might not be the biggest fan of the former president. ask you this. a lot of talk how he has made more in-roads with unions than previous republican administrations have. do you sense that among voters, might have voted for a bloc of blue might be open to hearing whether or not they this-othis-nk it's feasible, tope a candidate, president, senator, making now than in the past? >> union members don't vote as a bloc for blue and nevadas don't vote as a bloc. we're barrelly purple. a third independent, a third democrat a third republican. what's really going on is that the economy has, it's been difficult for working-class voters. look, democrats have to dotheir part. president biden's been a champion. he actually has blwalked picket lines in support of higher wages, higher minimum wages,

better health care for workers, but end of the day, the rising prices of gas, prices of groceries, prices of rents and the ability to build homes, that's serious business, and it has to be dealt with, and i think the election is going to swing on those issues. >> in other words it could potentially detract from the current president's support? >> i think the president has to stay the course. this idea of the economy and good union jobs bringing manufacturing back to this country, making sure people have health care. making sure they have retirement and dignity through their work. this president is the best friend to workers that we've seen in our lifetime. he's brought us through covid and is making changes in manufacturing. look, part of the criticism we have for trump is that infrastructure week ended up being a joke during the trump presidency and president biden made it happen.

las vegas, room cleaners, factory workers in the rust belt, we think the democrats have to stay the course and just come out swinging about going after high prices and, you know, big oil, big food and the, the giant wall street landlords that are going after workers. and if the president does that he'll win in november. >> thanks for your time today. good to check in with you. appreciate it. nevada culinary union. remember, you can always hear us on our podcast. follow and listen to "power lunch" wherever you go. we'll be right back. so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up.

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watching nvidia see if that was the tell. that stock down as much as 3%. came back, jon, a little bit. heading back towards session lows and dow still near session highs. >> microsoft doing better than earlier. some influence, too. >> indeed. outsize, might say. >> thanks for watching "power lunch." >> "closing bell" starts right now. guys, thanks so much. welcome to "closing bell." scott wapner with you. getting into whether biggest names gone too far too fast in tech and what might happen next? we'll ask the experts. ed yardeni joining us in a bit. 60 minutes to ge in regulation. the dow up near 1% here. a little bit of a late-day surge as names like salesforce and caterpillar, mcdonald's, travelers, chevron having a pretty good day. dow up more than 440