e♪ welcome to "power lunch." alongside kelly evans, i am jon fortt. fed chair jay powell laying out the case for the fed's fight against inflation. a lot of progress made but still more to do. what does that meep for stocks ahead of this month's fed meeting. plus, walmart and other stores are increasingly using digital price tags. making it easier to change and some say raise prices. discuss the reaction from inflation weary consumers. first a check on the markets near session highs. the dow up 44 points after being in the red much of the day so far. the s&p up 18 now to 54.93. the nasdaq up two thirds of a percent on top of yesterday's record close. the big mover today is tesla, up

8% again after yesterday's big move. 15% for the week now after reporting better than expected delivery numbers. let's start there with phil lebeau and more details. phil? >> kelly, those numbers coming in 8,000 more than the fed estimated. look at where tesla reported what it actually reported for q2, just under 444,000 vehicles delivered for the quarter. even though better than expected, it is the second-straight quarter where year over year there was a decline in deliveries. this time down 4.8%. production just over 410,000. now, the question is, can they hit the estimate of 1.82 million vehicles delivered this year, which would be flat with last year, even adam jonas from morgan stanley out with a note today saying it will be challenging if they're going to do it in the second half of this year. tesla doesn't break down its sales by region, we did get the numbers out of china, where they reported on the entire industry and in june tesla sales were

down 24.2%. that talks to or goes straight to the heart of the question of just how challenging the chinese market is right now. for the quarter, tesla is still ahead of byd in terms of full ev sales worldwide. byd-ev sales for the quarter, 426,000. so not quite to the level of where tesla was. tesla remains king of the hill, if you will in the second quarter. shares the last three months, we talked about before, the next two important dates july 23rd, which is when they'll post their earnings after the bell and the robo taxing reveal on august 8th. that's really what people will be focussed on because i think people are hoping to get some sense of, okay, how much is this entire robo taxi strategy truly flushed out or is this going to be very high, okay, this is what we want to do without a whole lot of specificity. >> all right. phil, please stay right there. for more reaction to tesla's

delivery numbers and the road ahead, let's bring in tim higgins, business columnist at the wall street journal and author of "power play:tesla, elon musk and the bet of the century" also with george is an analyst at can cord gentlemen knewty. george, these delivery numbers are better than you expected. looks like some of the big inventory numbers are being worked down here. but there's still questions about demand and supply from the chinese makers out there. so what keeps this stock moving in this positive direction? >> well, thank you for having me on. we think the really important metric from a stock perspective is to watch year over year growth trends. if our numbers are right over the next couple quarters, the next couple years, the year over year growth in earnings and non-gap earnings and revenue likely bottomed in the first quarter. and if you pay attention to what the stock has done, it probably bottomed in the first quarter. what gives us conviction that

they probably will hit that 1.8 number and likely grow into next year is that they promise to release new vehicles, we don't know what they'll look like, towards the end of this year and early next year. so that gives us some confidence and hope they can continue that growth stra jtrajectory over th several quarters. >> tim, how important is the premium end to tesla right now versus that low end where they're facing this challenge from chinese makers? and i don't know if they're going to have the same kind of help from the government, either in the forms of tariffs or incentives to keep them moving new vehicles? >> this is one of the challenges for tesla right now. they're stuck the middle. you look at the chinese rivals and they're kind of biting at the low end of the market. appealing to people who are price sensitive. the high end of the market seeing new entrants from lucid and china itself from some of the local makers there. they're the hot new product to have. in a market where early adopters

are people want to have the newest thing. tesla's lineup, long in the tooth. and kind of fighting for that middle ground where it's not quite sure how hot the market is. >> phil, what would you add to that? what would be the next, important data point to watch? >> well, it's the robo taxi. this is the one that everybody is keying in on because people want to know if there's truly going to be the level of detail that will give them confidence to say, you know what, this strategy makes sense. on paper what elon musk has said whether you go back to the last earnings call or previously, on paper it makes 100% sense. in terms of what he wants to do. but the reality is, getting robo taxi up and running and truly having an impact in terms of saying, okay, we have a fleet out there. and it's x hundred thousand and however many vehicles and seeing some trajectory. that's what people want to see. so august 8th is really what people are focussing on, kelly,

because if it's another case of, well, we think we're going to get this but we don't have a whole lot of specificity, i think it will be a disappointment. >> right. exactly. but, george, for you, how important is that as well when a lot of people would say robo taxi is a wonderful long-term aspiration and yet in the near term how tangible is it? >> look, it's an incredibly important date like phil alluded to. we'll see exactly talk about their long-term business model. but one key metric, key, key metric that we were focussed on when they report earnings is fsd full self driving take rates. they lowered the price of it significantly during the quarter. they gave a free one-month trial. to the extent people believe in autonomy, which we do, it will be really important to see how many people opted in and bought that software this quarter. that is the key to the near-term story. >> well, tim, my question overall and this includes robo

taxi is what is the value of a tesla you don't own and who bears the capital cost and maintenance cost of that tesla you don't own because to me, this gets to the details the robo taxi strategy, that matters a whole lot. >> elon painted two possibilities, two futures. tesla will own some of those vehicles, so it will be like they have their own robot taxi fleet out there. but then also the potential for the consumer, for you to own one of these vehicles and almost be like an airbnb situation where you rent it out, you send your robot out into the world to earn its living. the challenge, however, is we haven't seen this technology really from tesla yet. they haven't demonstrated the ability to deploy robots into the world to act as robot taxis. we have seen some companies in the world do it. here in san francisco, i can go outside my door and watch a waymo go by on a regular basis, but we haven't seen tesla do it. and that's going to be one of

the key things here in august is where do these timelines for actually deploying really fully self driving technology. >> and phil lebeau, the economics here i imagine are difficult, right? because what's the supply of robo taxi -- if i'm going to take on the risk of putting a couple robo taxis out there, how do i know my neighbor isn't going to do the same and all of a sudden i have cars that i was expecting to earn me money sitting in the driveway? >> sure. great point. look, that's what we -- that's the unknown here. how much -- how big will tesla's robo taxi fleet be? i mean, initially it will be small. everybody knows that. then how quickly will they allow people to put their vehicles into the robo taxi fleet. and you know, tim alluded to, they're taking this airbnb model. well, if everybody in my neighborhood is renting out to airbnb, am i likely to do it as well? probably not. depends on where i am and what the demand is out there. these are all the things that will need to be explained and

they won't be initially explained on august 8th. overtime, these are some of the hurdles that will have to be overcome. >> all right. thank you. phil, stick around for a moment because we also heard from other auto companies today with their june sales numbers and we're curious what impact, if any, we saw from that hack attack. >> well, there is an impact. we heard from dealers. when you talk with those who look at the overall sales trends within the industry, they say look, we think probably 100,000 to 140,000 vehicle sales were lost. we say lost actually deferred. they're going to be made up in july. let's start first off with gm. quarterly sales, as expected. up under 1% versus the second quarter of last year. but their ev sales, i know it's a small number, but they are ramping production. so it's important. their ev sales up 40% compared to last year. in terms of june sales from the foreign automakers, hyundai,

nissan, toyota, honda, generally speaking what people were speaking close to flat, maybe slightly positive as it is slightly positive for honda. and these guys, like all automakers, there was an impact. but, you will likely see it made up when you look into july sales. so i had one person say to me, you know what the impact is going to be on the reported numbers. don't be surprised if the sales rate comes in at 15.5 million when it was actually closer to 16 million. by the way, cdk says that their full systems will be restored by july 4th. here is the sales rate that we talked about, the expectation is 15.8 to 16.1 million for june. as you look at toyota, honda and hyundai, the incentives is what a lot of people are focussed on, not just for these guys the industry wide incentive keeps edging higher now up to $2,600 per vehicle when a transaction takes place. guys, back to you.

>> phil, i think you coffered all the cars and business models. thanks. fallout from last week's debate continuing for president biden. one democratic representative out today saying biden should withdraw from the race. emily wilkins has more on that and the biden campaign response. emily? >> hey, jon. congressman lloyd a democrat from texas, he is publicly calling on biden now to withdraw from the presidential race. he is the first sitting congressman to do so. he said in a statement today that biden now has the chance to encourage the next generation of leaders and, quote, unlike trump, president biden's first commitment has always been to our country, not himself. i am hopeful that he will make the painful and difficult decision to withdraw. i respectfully call on him to do so. now, of course, multiple lawmakers have raised concerns in private about keeping biden at the top of the ticket. but so far dogget is the only one to come out and be saying it publicly. democratic congressional leaders have continued to back biden.

senate majority leader chuck schumer just today reaffirmed his support of biden at this event in new york. >> we've worked hard together for four years and delivered a lot for america. and for central new york. i'm for biden. >> former speaker nancy pelosi also stood by biden but told andrea mitchell this afternoon that it was legitimate question whether his debate performance was an episode or a condition. >> my recommendation to -- is for him to have some interviews with serious journalists, you among them, serious journalist, no holds barred, any question is fair and just sit there and be joe. >> seems like the biden campaign liked that suggest, was just reported that abc news george stephanopoulos will have an interview with biden over the weekend. of course, the biden campaign has responded saying that biden is going to stay the course.

that he is going to be the one to go forward with his campaign and that he has a number of folks that back him and support him. so at this point it would be interesting to see if other lawmakers do come forward with concerns. that pressure might lead to some sort of change in the campaign. but at this point, guys, they are going forward with biden running as the potential nominee. >> so we have about six weeks or so until the dnc in chicago. i have to imagine with that timeline, they're looking at and saying do we drag this out until then if there's going to be a change to the top or bottom of the ticket or do something right away to nip these concerns in the bud. >> it's a huge question right now. to be at that point, to have this much concern over the leading candidate, it really hasn't been precedented at least in the last 50 years or so. so there's a huge question if biden does step down, of course many people who could come in. you heard jim clyburn also this afternoon speaking with andrea mitchell saying, hey, if biden

steps down, he supports him for now. if he does, he thinks that kamala harris needs to be the one to step up. many other names that are being floated around at this point. but the fact of the matter is that six weeks is not a lot of time for candidates to potentially get out there, to make their case, to gear up their fundraising. and the longer this decision goes unmade, the more and more it is sort of going to lock biden in to being that nominee. >> the context here, emily, is interesting. lloyd dogget himself is 77 years old and nancy pelosi is 84. part of this is about down ballot races, right? you would expect in a lot of districts in texas, this is going to be tight any way. and they probably don't want another factor weighing on the ballot. >> i mean that is always the concern for the down ballot candidates, right? so many folks when they go to the ballot box, they don't really necessarily know their senator or lawmaker, their local officials. but they do know they like the democrat or the republican at the top of the ticket. and they tend to vote the rest of the ticket as such. so of course that doesn't always

happen. and we are seeing in some places some of these down ballot candidates are pulling ahead of biden. but at the same point, it is always a question who is at the top of the ticket. that is always a factor. >> all right. emily, thank you. well, the fed chair weighing in on markets and inflation earlier on cnbc. more on that next. but first, as we head to break, a quick power check on the positive side of the s&p, beyond tesla is on semi. on the negative side, lennar, citi downgrading citing sluggish housing market. and that's your power check. we'll be right back. ♪ i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories

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do it all on the network made for streaming, and bring on the good stuff. ♪ welcome back to "power lunch." fed chair jerome powell on cnbc earlier today saying he sees progress on inflation, but also reigning in rate cut expectations. take a listen. >> we've made quite a bit of progress in bringing inflation

back down toward target. while the labor market has remained strong and growth has continued, we want that process to continue. i think the last reading and the one before it too inflation -- the one before it to a lesser extent, do suggest that we are getting back on a disinflationary path. we want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing how tight our policy is, of loosening policy. >> our next guest says the fed could be a caveat to the market but still thinks the rally will go higher and has just revised his annual price target to 57.557.5. let's bring in keith fitz jgera. hawkish sounding powell there. >> even with. the market will continue to narrow up. it will be companies like nvidia and tesla and apple and many of the great tech names we talk about all the time that lead the way. companies like nike and walgreen's are going to get left

behind this earnings season. it will be very telling. but still path of least resistance is higher, kelly. >> why do you think that is? >> why do i think that the path is higher or that they'll be left behind? >> well, both. >> still a lot of money that needs to go to work and structurally we are very identical to two prior periods of significant growth, lots of innovation, we had labor challenges. 1950s and the 1990s. if we think about this like a beach party. everybody is rolling on to the sand, starting to break out all the great food. people are smiling, frisbys going around. long way to go before everybody gets sunburn. nice, good place to be. doesn't feel like that. but history is often that way. >> keith what do you do with your gains a in the point? say, you were right. and you expected -- you were listening to keith fitzgerald and expected the s&p to reach these levels. do you just stay completely invested? even in the s&p, say you're invested that way. from here or do you redistribute

those gains in some way that takes away some risk of the narrow market rally? >> that's a really good question. my preference is the ladder. buy and hope is not an insistment strategy. but buy and manage very much is. taking profits just like you harvest fruit from a tree in a ripe orchard that's what you want to do. great defense stocks, undervalued healthcare out there. so you don't want to get off a winning horse mid race. my opinion is definitely you want to think about how do i take some of that money off the table. what do i do with it. where do i go next. >> keith, let's talk about nvidia, said there's still more room to go and continue to say that. i don't know if you saw last hour, we spoke with m.i.t., who said he thinks the impact of this in terms of the economic impact is actually going to be much smaller than people think. if that's right, yeah. measurable terms it can replace some tasks but really not the bulk of what comprises human economic activity.

>> i think that's a very interesting observation. i disagree with it. and very respectfully so. this is a lot like saying that talking movie pictures wouldn't replace silent pictures. a.i. is not just a technology. it's the greatest technology in recorded human history. i think that every dollar you're spending on it now is returning 5, 6, 7 to the balance sheet. we'll be looking at 9, 10, $12, $15 a few years from now. so the question is not so much is it coming or is it inevitable. the question is what does that look like. so, i would respectfully disagree. i push back on that pretty significantly. and i think that that's a very interesting but not a viewpoint i agree with. >> what are you betting happens to the small and mid caps here? >> that's an interesting question. we struggle with that because i think that quality matters. the problem we have in today's market is that many of the small caps that are really good, solid companies are getting purchased before they go public. so the question is, who is out there and what?

ion q, it's batting around in the low dollar ranges. that's interesting. when quantum computing comes in that's an example of a small cap that might make it. gene editing is potentially four, five years from now very, very valuable, full disclosure, i own both of them. but i think you got to pick your bets very carefully because the big caps are what the security, the balance sheets the strength needed. >> and keith i should mention you're still bullish on tesla thinking this could be a $300 stock next year. >> yes, i am. i think this stock will double or triple, maybe even more in the next few years. again, we're early innings. anybody who is thinking about this just in terms of cars is very smart. but i would encourage them to broaden about power. this is perhaps the best undervalued ai play on the planet right now. love them or hate him, musk knows what he's doing. >> keith, thank you. we appreciate it. always fun to check in. keith fitzgerald. >> thank you. now a check on the bond

market. rick santelli tracking the action. rick? >> hi, jon. yes. you know, i have to make a comment about the chairman, wonderful interview with all the leading monetary policy people in the world including christine lagarde and chairman powell, word disinflationary came up so many times. that's monetary policy fed phrase they love it. it means less inflation. but, average guy on the street, he's not interested in dis-inflaigs. he wants deflation. there's a huge difference. one is less of inflation. the other is a reversing of the compounding effects of inflation. public is not going to be happy, but the fed will be. if you look at interest rates, last month had some very important moves. if you look at the one month in the 10s and let's play a game here. look at the left side, look at the right side. you see the hump on the left. the hump on the right. okay. now let's do that same one month, but let's put a 2 year. now on the 2 year the hump on

the left, you have nothing on the right. super significant. now let's put the spread out there. okay. here is one month of the spread. the right side is breaking out. the curve is de-inverting, getting steeper, minus 28, minus 29. many sources and traders i talk to are now calling it the political trade of 2024. because one of the big issues going to be tax cuts or no tax cuts, who has a bigger deficit? biden or trump? and i'm not weighing in on what the positives or negatives are. i'm just saying the more that becomes talked about, the more the curve will deinvert and the steeper it's going to get. kelly, back to you. >> all right, rick, thank you. rick santelli. further ahead, is peloton now done yet? the company struggling to pull off a big refinance and narrowly avoiding bankruptcy. oh, yes, "power lunch" will have details when we come back.

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welcome back to "power lunch." stocks are higher, near session highs right now with the dow up

100 points and nasdaq up three quarters of 18 points. nat gas is down but a federal judge says the biden administration cannot delay new lng projects. pippa stevens is here to delay. >> this is the latest in the saga. yesterday a louisiana judge overturned that decision by the biden administration to pause new lng export approvals. that was back in january. so 16 states brought this case saying that it was unfair, hurt the economically and there was no basis for it. now, just like that initial pause back in january, this latest move will not have any sort of immediate impact. right now the u.s. is the world's largest lng exporter and set to double by the end of the decades thanks to projects operational and those under construction. however the biden administration got a lot of credit from climate activists for this move back in january. so it was a win in that sense. and the administration said they were disappointed. now, moving over to oil, it did

hit a two-month high earlier today. also growing ease around hurricane baryl. first storm to reach category 5 on record. its path is not set to hit any refining operations or u.s. oil but will impact trade flows between mexico and the u.s. the u.s. imports 400,000 barrels from mexico each day and mexico imports 1 million barrels of products. if you have the hurricane blowing through, you can't have the tankers traversing the area. >> it made landfall. now it's still moving. and it's not supposed to hit the u.s. it has shifted a little bit in the sense that it might impact corpus christi and south of texas by sunday. but right now it's not forecast to hit the u.s. or any of our oil infrastructure. >> any chatter about how the supreme court decision, chevron, i believe, might impact the u.s. as an energy producer?

sure seems to me like if regulators have less power to interpret what congress says, there's more likelihood that energy producers might have a longer leash. >> i think it's really hard because in a lot of these cases you get that federal top down policy. but then a lot of the time it really comes down to the nitty-gritty, to the state and the local level. we have seen this again and again where things keep flip-flopping back and forth. and i think beyond just whether or not you think the u.s. should continue on fossil fuel trajectory or move more towards green energy the flip-flopping of policy is what's really hard. energy required billions of dollars in up front spending. it's very cap-x intensive. if you have these movements constantly shifting and political head winds developing, fixing our grid that much harder. >> pippa, thank you. now get over to seema mody for a cnbc news update. >> jon, nice to see you this hour. we enter the hottest time of the year, president biden issued the country's first-ever rule on protecting american workers from

extreme heat. the proposal is calling for employers to take several steps to manage the risks to an estimated 36 million workers and they include requiring rest breaks, shade and water. as well as training to recognize heat-related illness. the man accused of stabbing author rushdie rejected a plea deal today. his lawyers say it would have shortened his state prison term while opening him up to a federal terrorism related charge. he is accused of stabbing rushdie more than a dozen times after attacking him on stage before a lecture in western new york. he has a blinded eye. the food and drug administration approved eli lilly's alzheimer drug. a one-year course of therapy will cost $32,000. the fda granted full approval to a similar drug just last summer. jon and kelly? >> seema, thanks. coming up, consumers losing

patience over inflation. whether it's diner's calling out shrinkage at chipotle or shoppers keeping a watchful eye on the price of eggs. now the growing use of dynamic pricing across the consumer space could spark more outrage. we'll discuss when "power lunch" tus. ♪

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♪ welcome back to "power lunch." walmart becoming the latest retailer to announce plans to replace its physical in-store price stickers with electronic shelf labels in its aisles. while the digitized shelves will allow stores to provide more details. it can change prices as often as every ten seconds. joining us now on set to break this down is phil lappert supermarket guru ceo and melissa. great to have you both. phil, how much danger is there here if shoppers aren't reassured that they're not hiking prices. >> that's exactly the point. and short term, no danger. walmart has already come out and said they're not going to do dynamic prices. they realize what happened when wendy's talked about dynamic prices a few months ago. up in arms. people just hate that idea. and keep in mind that what

walmart is doing, they're trying to reduce their labor cost. labor is the number one aspect for retailers. they got to reduce those costs. but once they put this technology on the shelves, watch out. now, the good news is, we can get nutritional information. if walmart's competitor across the street goes on sale, walmart can lower prices. but again, once that technology is in there, and that's my concern, they can raise prices on a hot summer day, you know, i want a lot of ice cream. i want lemonade. they're running low. they can raise the price. >> melissa, everybody loves dynamic prices when the price goes down and you get a deal. how much of this is about predictability? price stability from the consumer's point of view. >> like phil said. walmart told me they have no plans for dynamic prices but there are high-tech features here. the feature is blinking lights on these labels that allow a worker to more quickly replenish that shelf when they're putting diced tomatoes or picking an

online order also helps them find the items more quickly. goes to that labor cost. now, of course, we have seen dynamic pricing in grocery stores. people just don't think of it that way. when you see bread marked down toward the end of the day or strawberries toward the end of the life, you often see that sticker on the label saying 50% off or 20% off. people do enjoy that. the fear here, of course, is more of that surge pricing we have seen with uber. so it brings to mind this panic about people seeing prices go up. this is a time when people are hypersensitive about pricing. it's been a reoccurring issue. everything is more expensive. it's not just in their head. and we saw this even with chipotle, people were filming and posting on tiktok, trying to get bigger portions from employees and feeling like they were getting less. >> yeah. wells fargo went and did a deep dive, how many 100 chipotle folks. >> it's worth noting they had a lot of variation there because there was no consistency. so, it kind of speaks to this perception versus reality gap that, yes, some companies are trying to cut back.

and some cases we have seen shrinkflation. but in some cases it's just because consumers are very sensitive. >> i want phils inevitable this is where we're going, digital prices. regulators will get involved at some level put in safeguards, some kind of guardrails around the experience. but don't you think we should expect to see a lot more of? >> yes. i'm not sure the guardrails work. from a retailer standpoint, the average supermarket makes 1.5% net profit per year. >> yikes. >> keep in mind, the past year, year and a half, they have made a little more, price gouging. the reality is, it's a very low margin business. if you can reduce your expenses, that's a good thing. the question is what happens next and what's the fallout. melissa and i were talking before. keep in mind, there's other retailers out there, dollar general, grocery outlet. what they rely on are goods that are about close to expiration date they can buy at cents on

the dollar and really offer their customers, you know, big savings. >> they should allow those prices to change day by day as the expiration draws closer. >> they're not going to get the goods. walmart or anybody else can do, gets close to expiration date, they'll lower the prices. so that whole dollar general channel of distribution, they're going to be at risk. >> but this is about culture, isn't it, melissa? because with stocks, with gasoline, with airline flights, we're used to dynamic pricing. we just expect it. hey, i buy a ticket today. the price might go down. the price might go up. maybe i have to check and get a refund. is it possible that we end up accepting a new norm. prices moving on everything everyday. >> you're right. i think this is a bit of a boogieman. it's the same way that shrinkflation became a household term. they associate these prices and have a powerful feeling about them. t.j. maxx has dynamic pricing. they bring you last season

version's of clothing for less because there's less demand. so that's really a form of dynamic pricing, too. i think if consumers see the upside and downside, like wendy's said they were misconstrued, they really intended to lower prices to incentivize demand. so if people see this play out, maybe they would become more comfortable with it over time. >> but food is different. food is primal. >> yeah. >> and when you screw around with the price of eggs, look at what happened with bird flu with the price of eggs. people are panicking. >> sure. >> so this is very primal. so i agree with you. when it comes to clothing, when it comes to hard goods, when it comes to electronics. but don't mess with my food. >> don't leave me hungry. don't me my quarter pounder is an eighth pounder for the same price. >> thank you. melissa and phil, thank you. more reports coming out about the future of paramount. right to julia boorstin in the news room for the latest. >> paramount global is reportedly in talks to sell

b.e.t. to buyers including b.e.t. ceo scott mills and cc capital chief according to a bloomberg report. according to this report, this group is looking at an offer price of 1.6 to 1.7 b$1.7 billi. b.e.t. has been on and off the block for years, including with this same group as well as with byron allen offering $3.5 billion last year for b.e.t. as well as vh1 combined. now all of those talks hulted ahead of paramount sherry redstone's deal talks with skydance. of course those talks did fall through last month on june 11th. now these talks about buying just the b.e.t. asset restarted. all of this comes as paramount global works to cut costs and to drive towards profitability. we have reached out to paramount global and have not heard back yet. julia, over to you. >> thank you, julia boorstin. new reports some

investigating anti-trust around nvidia. we'll get the details in tech check when we return. ♪ (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

welcome back to "power lunch." nvidia is just the latest big tech company to attract the attention of european regulators. deirdre bosa looking at that in today's tech check. deirdre? >> hey, kelly. so nvidia's rise to not just the largest chip maker in the world but largest tech company by market cap for a brief point, it was bound to attract some regulatory attention. it has. reuters reporting the french anti-trust authority is set to charge nvidia for anti-competitive practices. they're not the only ones. in a regulatory filing last year, nvidia said regulators in the eu and china also asked for information on its graphic cards. like the broader eu-dma which targeted apple, microsoft, meta,

nvidia could face as much as 10% of the global revenue for breaching rules. the bottom line, they have been so successful that it's no longer just a chip company that makes gpus it's an ecosystem, hardware works bester on the software which are increasingly served by own cloud infrastructure. also investing in smaller companies like core weave and others that in turn expand the nvidia ecosystem around its products. now regulators are trying to figure out if that's fair competition or self dealing, letting the big players leverage their market power, resources, inside information to gain unfair advantages or stifle competition. it will be interesting to see how this now plays out in europe, guys. jon and kelly, you well know that the european regulators have been more aggressive, tougher than their american counterparts. mostly they've been regulating foreign companies, our bug tech companies, but there's some interesting startups in the gen-ai world. >> deirdre thanks.

not much of a cliff hanger whether european regulators will regulate or not. coming up, president biden and senator bernie sanders calling on eli lil tlyo cut the cost of weight loss drugs. we'll talk about that in three stock lunch. no. how am i going to do this? welcome to the mdy mid-cap cup, presented by state street global advisors. today's challenge is to play 9 holes without the middle of your bag. how does that sound? that sounds terrible. ♪♪ ♪♪ ♪♪ ♪♪

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♪ welcome back. time for today's three stock lunch. boris is managing director with bk asset management, a cnbc contributor. welcome to you. let's start with eli lilly today. president biden and senator sanders are citing the high cost of weight loss products in an och ed. should that dent the share's near term potential? >> it's a great buying opportunity. eli lilly is looeder in this sp. they have multiyear,

multi-investment opportunities. i think these, you know, these drugs are here to stay. of course, the best way to play is lilly. any dip is great. >> in this case? it's doubled over the past year. you don't think it's too expensive? >> it's too expensive in the near term. five years forward where they will have this massive global scale, obesity is a global problem, not just a u.s. problem and the amount of revenue they will generate tauf this product is going to be tremendous. if you have a three to five-year forecast going forward, a vision going forward, you will be well served from lilly. >> what if prices get capped? >> i think it may actually expand the markets. you have lower prices, maybe you have more people willing to take the drug. there is a huge demand. they can't fill it. from everything i see, three to five, sometimes six-week wait on the pharmaceuticals to fill the drug. it's just i think a tremendous

buying story and it's always buying stories, you get really, really big moves on the stock and they are underestimating the power. >> dynamic pricing, maybe. paypal getting an upgrade to positive from neutral, citing valuation for the upgrade following the stock's recent decline. what's your trade on paypal? >> this is interesting. yes, from a valuation point of view, cash flow, 13 times earnings, looks good. but i am very, very cautious on this stock. paypal has a lot of competition now. number seven in china. very much at the bottom of the seller in the leading place where there is digital payments. with apple cash, i have seen the demo, very slick, the ability to pay somebody out of messages, very slick. i think it's very hard for these guys to compete going forward. to me in order to be able to get long, they have to see customer

growth instead of just financial engineering. until that happens, i would be a holder. >> just a hold. to paramount then. tons of news surrounding this one today. what's your trade? currently over ten bucks a share. >> it's a stock that is giving every trader and a suitor ptsd the last couple of years. we had so much drama. disappointments going book and forth. paramount i think is an interesting punt. it clearly has tremendous assets, at the same time legal problems because of the family having near universal or total control over the voting. at this point i think the story here that barry miller and i see -- diller, sorry, may have an interest. if they come to a deal, that would give it a boost. the stock i think has a potential to be a $15 takeout stock. there is a great punt. but walk win with your eyes wid open. if it doesn't work, it could be dead money going forward. >> the dreaded words.

boris, we hope not. good to see you today. >> good to see you guys. major avenues near session ow lchhis. "perun" will 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. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free.

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welcome back to "power lunch." we have breaking news out of the new york supreme court. they have postponed presidential medal of freedom's sentencing to september 18 at the earliest. this is the hush money trial in new york. the original sentencing was set next week, july 11. it's been postponed to september 18. something that trump's team asked for in light of the supreme court decision yesterday. and the opposing team had not opposed that decision. so that will be september 18 at the earliest. back to you. >> all right. thank you. now let's check out shares of peloton, above 330 a share. down 95% from four years ago.

it was a pandemic darling. gabrielle joins us now with an update on the company. >> thank you. peloton pulled off a major refinancing of its debt and got a $1 billion syndicated term loan and got a new $100 million revolver. sop what the company did with this is it used those funds to pay back some notes that was weighing down the balance sheet. of course, investors were eager to get out of those notes. they were raised in february of 2021. it was about a month after the stock reached an all-time high of $167. they had a conversion price of $239. >> yikes. >> so, obviously, that conversion option was now worthless, and those notes were unsecured. so in the estrenvent they decla bankruptcy, they would get nothing. >> that is close to bankruptcy? >> they were because they were

deeply in the red. they were going to have to repay by november of 2025. unless there was a dramatic change in sales patterns, nine consecutive quarters of drops. so wasn't looking good. >> hardware company trying to be a services company. >> but you still use yours every now and then. >> i know. i need a new one. thanks for watching "power lunch." "closing bell" starts now. welcome to cl"closing bell." this make or break hour begins with the steady stock market. the broad s&p 500 working on a tenth straight day with a move of less than half a percent. the indexes have strengthened through the afternoon. back to the up days than down days over that quiet streak. the scorecard for 60 minutes to go in regulation, the s&p 500 and nasdaq composite on pace for a new closing high. underlying market firmer it than the last couple of weeks. the s&p 10 point