♪ good afternoon, everyone. and welcome to "power lunch," alongside morgan brennan. welcome, morgan. i'm tyler mathisen. what looks like it could be a cpi rally has inflated. inflation fell by .1 month over month. but stocks are lower with the exception of the dow, which is up ever so slightly. >> the rest of 2000 having a big day too. bond yields following on the news the 10-year trading at 4.197%. we've seen a lot of buying in the bond market today. we're going to get to rick

santelli for more on that. tech's big three selling off in today's post-cpi market. nvidia down 5.5% right now. >> we're seeing big moves in intrasensitive names. real estate is the s&p 500's biggest sector today. look at some of the home builders there. lennar up 6%, d.r. horton, almost 7. so, why are tech stocks selling off? let's bring in michael can't wits, chief investment strategist with piper sandler. why are tech stocks taking it on the chin? >> i don't think it's anything fundamental. i think the large cap growth space and tech stocks have melted higher since interest rates peaked in late april, starting with the unemployment rate moving up. i think investigators are looking for a reason to look for other opportunities and rotate. and this is really one of the first good, good data points on

inflation that investigators have gotten. so, i think it's a short-term profit taking on overextended stocks, perhaps, but i don't think anything fundamental. >> can you nitpick the inflation number? are there parts of it that are not as favorable as the overall number, the core was a hill higher? >> i think inflation is old news at this point. i think we may have said this last time i was here. once employment rate starts turning up higher -- >> which it has. >> -- and now it's been several months in a row, and forward-looking indicators suggest it's going to continue. it's time to look beyond inflation. i think the market is finally there. >> the rise in the unemployment rate worrisome to you? is it rising so fast -- it's still at a low level, but is it rising fast enough to be of concern to you? >> no, i don't think so. certainly seeing small caps finally get a bounce is not indicative of that. i think the market's been weighed down the last two years by higher interest rates and higher inflation. inflation started going away in october of 2022. the fed started going away, ending their tightening cycle

last november. and that's why the markets have drifted higher. and i don't think people are worried about inflation so much anymore. and part of that is because the unemployment rate is going up. so, i think the risks are shifting, just as powell said recently, speaking to congress. and i think that's where the market is. i don't think the unemployment rate has been moving up high enough or is high enough to cause a broadening downturn in the market yet. >> okay. so, this inflation narrative is intact here. the inflation story, as you just said, old news. you've got the markets pricing in something close to 100% expectations of a rate cut. it's the first rate cut in september. the flip side of disinflation and some cases even deflation is the impact it has on the micro. look no further than pepsico and conagra. we're seeing the impact of disinflation start to hit earnings. how big of a risk is this, especially given the fact that investors have very high expectations for this season?

>> that's a great point. and expectations are pretty high across the board. there's not one spot where it's necessarily outrageous. this is why i don't want to be chasing small caps here. we saw in the last nfid report on small businesses the company's plans to raise prices are fade. that's probably because they can't raise prices anymore. if you can't raise prices and you have sticky labor conditions rngs you're going to have to lay off more and more people. i think what we're setting up for is we've seen a pop in multiples for small caps. they're not cheap, trading at 16 times earnings. they were cheap a year ago in october of 2022. what we're going to see is reality hit. you're going to see stocks that have just seen expansion, rates are down, inflation coming down. inflation coming down is a pricing point of -- tighter margins, weaker revenue growth. >> you think this is a knee jerk move with the russell 2000 up

3.4% today. in some cases we're talking about 180 degree reflection of the markets we've seen up until today. >> the reason there's been such a sharp major reaction is we've seen since april bad macrodata. the economic surprise index is at a three-year low. rising unemployment. we've seen bad macro news for the last two and a half months. the only upside, while earnings estimates continue to be chewed down lower, is inflation coming down, which is exactly what we saw today. that's why i think you're seeing such a knee-jerk reaction. there's fewer reasons or catalysts for small caps to continue. >> you get real estate performing well. no surprise there if interest rates are going to come down sooner rather than later. are there other sectors that you would expect to benefit from the macro environment that you see? >> yeah. i think you've got to be careful. what's leading today is rate sensitives and risks, low quality. the issue with buying low quality and risk is that when

earnings season comes around, and particularly because we've seen bad macro news, rising unemployment, software inflation, you're going to get earnings misses. the areas we would prefer would be areas like utilities, just buying bonds in the tlt index, or even emerging markets. we see the dollar softening today. one benefit of softer u.s. macro data, lower inflation or weaker unemployment, is a softer dollar because the fed is going to cut. that's alleviates countries around the world with really weak currencies and allows their central banks to rapidly cut interest rates. >> interesting. great to see you. now let's get to bond market piece of today's action in a little more detail. rick santelli is in chicago to break down the big moves we are seeing in bonds. >> yes, morgan. you know, it was a huge day. if you look at a chart with 2s and 10s, i don't need to say much. when the wires had the 830 minus .1% on headline cpi, that was it.

interest rates dropped like a rock and the equities of course pop. if you look at 2s and 10s on a four-month chart, if the 10% closes under 419 it's probably the lowest in four months. 2 is around pace for that. if we go above 419 towards the end of march, it was a huge number. just to keep it in perspective, if you look at the indices of cpi, there's two of them, core and headline. they're both still at all-time highs. the indices did not reflect that negative number because last month was so much more powerful. the compounding nature of inflation is a tough one. mike, nice to talk to you today. all right. what did you think of the numbers today under the context that equities continue to ride high even though we're looking at one cut, a euro is half a dozen. what's driving equities? >> inflation is the story since 2022. we've talked about it constant. we've looked at cpi, unemployment, thinking about the inflation numbers and what is the fed going to do? as you said, earlier this year we were pricing in five, six

cuts. we kept pushing those out. i think what's notable, we kept pushing those out because we didn't get inflation numbers that were confident. and the last thing the fed wanted to do was cut rates, get a bad inflation number, and have to raise them back. we kept pushing them out, but the markets remain calm. we're at the lowest -- in a year since 2017. we have under 14, about 13.8 vicks average this year. the market has remained calm. i think that was a sign that the market is confident inflation would come under control and confident because inflation would get under control the fed would lower rates. we haven't had that selloff. >> if there's going to be a big mogul down the road, in your opinion, what event or exogenous event would that be? >> you know, the nature of that is exactly the problem is that it's going to be something that we're not going to suspect. in the past, we've had things like oil we've looked at. we've looked at different geopolitical events. >> and now none of that makes a

difference. we have a president where they're debating whether he's good for another four years. i ask, is he good right now in that none of that gets priced in? no 25th amendment, no. >> no. we're not seeing affects on political -- cpi, as you know, we have ppi tomorrow. people are look at that. as far as the political situation, that's probably for a different channel. as this stands right now, inflation is driving what we're talking about going forward. we have about a 100% chance of having a rate cut in september. looks like we're going to have maybe one or two before the year is out. i think that means the market -- >> i guess my final question because we're out of time, if they cut and inflation comes back a bit, are they going to have egg on their face or be fluid? >> it's going to be an interesting market if that happens, and we'll all be ready for it. >> mark palmer, thank you. tyler, back to you. >> rick santelli, thank you very much. we've got new numbers on government spending from the treasury department. you can imagine which way

they're going. how much interest did the u.s. pay on its debt, megan? >> it just keeps climbing, tyler. new treasury data shows the u.s. government spent $140 billion on interest costs just last month. that's a 14% jump from a year ago as the debt has grown. fiscal year to date, interest costs are 33% higher or $215 billion higher than they were this time last year. besides interest, spending at the social security administration was up and adjusted 8% last month. that's due to the cost of living adjustment. spending at the department of education was up a remarkable 228% due to recalculation of student loan subsidies. the government is running a roughly $1.3 trillion deficit, but that's 9% smaller from this time a year ago. tyler? >> why is it smaller? >> higher tax receipts and slightly lower spending in a couple of different categories. it's mostly the receipts benefitting from those.

>> megan, thank you very much. as we head to break, check out shares of tesla, on pace to snap an 11-day winning streak on reports it's delaying its robo taxi event from august to october. we're going to continue to follow that, with shares down almost 8%. on the flipside, shares of quantumscape surging nearly 30% today, climbing on news of a landmark partnership with volkswagen's battery company. we're going to speak to the decree of quantumscape about that and more when we return.

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speed up the manufacturing of squan tumscape's lithium metal batteries for electric vehicles. here on cnbc is siva sivaram, the president and ceo of quantumscape. what does that partnership with powerco, who's looking to industrialize your battery technology, what does it entail and what it will take to get to the point of production? >> this is a highly collaborative partnership that we have developed with volkswagen. volkswagen has been a long-term partner for us. we have a very, very highly differentiated technology that allows us to have both very high energy density and power density in our cells. volkswagen has been evaluating our sales and earlier this year showed that after 1,000 cycles, we still raked in over 90% of the power in the cell. volkswagen has been working with

us closely, and we decided to take our partnership to the next level. we are a technology company. volkswagen is a worldwide manufacturing boeheim igt. together, we can leverage our respective strengths for us to now take our technology into high value in the fastest possible way. >> okay. so, we're talking about solid state lithium metal batteries. it's a new technology, a new innovation. what does it take to actually see this produced and end up out on the roads and in electric vehicles? >> this is exactly what we are attempting to do. clearly the patented technology, unless it becomes a product and it goes on a series vehicle, it's only a pipe dream. so, for us to make sure we take this immensely high-potential technology, we need to take it from concept prototypes into gigawatt hour scale production. volkswagen has the infrastructure to do it. our technology is poised to go

into that plan. we need to now industrialize our technology, robust it, make sure that we are able to ramp in high volume production. and that's what they're going to help us do, and they're going to do it in their own facility. >> what does a solid state lithium metal battery do that a traditional so-called lithium ion battery can't do? is it length -- is it going to add range? is it quicker charging? what? or all of the above? >> glad you asked. there are five things that all batteries have to do. they have to be safe. they have to give you range. you need to be able to charge very fast. you've got to be able to cycle it for many number of times so that there is life in the battery. >> low degradation. >> and they have to be cheap. we are the best in all five of them. we, with the ceramic separator lithium metal technology that we are coming in, we believe we

have a potential to be the best on all five of those vectors. >> so, if my battery in my ev gives me a range of 320 miles, how much would your battery give me in my ev, which happens to be a tesla? >> correct. so, it depends on what the size of the battery pack that oem is willing to put into it. a typical 80-kilowatt battery pack, which is in high-end vehicles, gives about 800 miles. it takes about four or five hours to charge. sometimes for a short distance, you can do a very fast charge. what we are saying is we can, over time, give the consumer high range, and we are able to charge on 0 to 80% -- 10 to 80% in less than 15 minutes and not lose range when you're hauling or you're trying to take a lot of power. an 80 kilowatt battery having

1,000 horsepower. that combination of power and range and safety, the most important thing in the battery, given the solid state battery, is the safest battery yet. >> i heard you say that the charging time to go from 10 to 80% is something like 15 minutes. that is an improvement, having just spent a good long time at a tesla supercharger. i did not hear you say, however, what the increment to range is from what i get now, which is 320 or thereabouts to what a comparably sized solid state battery would give me. >> that is a good number. if you asked that question, i would have told you that. we are a good 30% better than the current lithium ion batteries in the marketplace. >> okay. >> so, in light of that, we know that there's a demand slump right now for evs. we saw it in the car used index this week that ev prices had fallen more dramatically on a

year-over-year basis than some of their combustible brethren. what does this technology do to actually, i guess, charge demand for evs? >> i'm glad -- i'm talking about the power company talking at power lengths and talking about charge. this is the best thing i can do. the question you're asking is very, very valid. today is literally -- leave a little bit to be desired. the average customer does not get convinced to go into lithium ion batteries and buy a ev because, as you said, the range is not there, we can't quite charge fast enough, it doesn't give you the power that you need, and if you use the power, the range drops out dramatically. and to get the safety, there's a lot of additional weight that you need to add. what we are coming and saying is, look, for you to move from the enthusiast to the average consumer, you need the next generation of batteries. we are the leaders in the next generation of batteries. what we are coming and saying

is, whether it is range, whether it is how fast you can charge, whether it is safety, whether it is the number of cycles that you can charge the battery, we are a quantum better than everybody else. >> aah, okay. siva sivaram, ceo of quantumscape, thanks for joining us. >> thank you. thank you for having me. >> also i think i said combustible instead of combustion. >> i knew what you meant. >> big difference there. >> my home state, virginia -- well, it's actual a commonwealth -- crowned as this year's top state for business. which states or commonwealths are leading the way in the great a.i. race? we will reveal that when power lunch returns.

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welcome back to "power lunch." virginia crowned as this year's top state for business thanks to its high scores in education and infrastructure. future winners are also going to need to be strong in a.i. and scott cohn joins us now with a look at the states that are taking the lead in that area. scott? >> reporter: yeah, tyler. this is so important, this industry, and it's gotten so

important so fast that we knew we had to incorporate some metrics about a.i. in this year's top states for business study. we have them in the technology and innovation category and in the business friendly category. and from that we can glean america's top states for a.i. and we're not the only ones tracking this. for all the subjects they study at stanford, only a handful warrant their own institutes, like foreign policy, neuroscience, the economy, and since 2019, artificial intelligence. that's how big a deal they say this is. >> this technology is a general purpose technology that's going to affect everyone and everywhere. >> reporter: in addition to helping to shape the future of a.i., they're measuring the present. where's the innovation occurring? where are the jobs? who's regulating it at a time when the industry is asking for direction? >> right now we, kind of, are in a wild west in this space. >> reporter: using data from stanford's 2024 a.i. index report and our own data on technology, workforce, and

computing power, these states are leading the way. texas, with america's top workforce overall, is a mecca for a.i. jobs. 36,000 posted just last year. virginia isn't far behind. plus enormous data capacity. maryland is helping to shape artificial intelligence law. washington, the home of microsoft, is a center of innovation with 12 a.i. models developed by washington companies just last year. the leader in a.i. is california. >> california, by far, is the leader of the pack and not by just a bit but significantly in comparison. >> reporter: home to the biggest players, by far the most jobs, and massive computing power. the other thing that california is on the cutting edge of is regulation, which right now is seen as a positive in a.i. but russell walt of stanford tells me that the industry wants to be regulated until it doesn't. it may very well be getting very

close to that point. we've got lots more about all of this and see where your state ranks across the board in our top state study. topstates.cnbc.com. guys? >> i think this is so fascinating, and i'm very familiar with the a.i. index report. i did something with the authors of it at the council on foreign relations not that long ago. i find this fascinating. does power or connectivity factor into any of the methodology of any of this? we know the infrastructure piece of this is going to be critical, as the whole complex is built out. >> reporter: yeah. and you know, doing an index for top states for a.i. is a little bit tough because of all of these things that are happening. we definitely look at the power grid and our infrastructure category in top states. that's really important. it's one of the things here in virginia that they are concerned about because they've had some reliability issues. they're trying to get on top of that for just this very reason, because so much data goes through this top state for business that if they want to keep it the top state, they need to beef up their power system.

>> as you pointed out, virginia has a tremendous number of those data centers. and i know dominion power has been begging, making sure they have enough capacity to fuel them. anyhow, scott, good to see you. enjoy my home state. >> reporter: yeah, will do. >> the commonwealth. >> the commonwealth. let's get over to seema mody for a cnbc news update. >> morgan and tyler, president biden announcing a $225 million military and aid package for ukraine today, following a meeting on the sidelines of the nato summit with president zelenskyy. and that, of course, is getting a lot of attention. the equipment includes antiaircraft missiles, munitions, and a patriot missile battery. according to the biden administration, this is the 61st weapons package the u.s. has sent ukraine since august of 2021. houston's biggest power provider said today half a million customers will not see their electricity restored until sometime next week. widespread outages have plagued the cities since hurricane beryl made landfall earlier this week

as a category 1 storm. as many as 2.7 million people lost power at the peak of the outages. and a hiker in colorado captured the moment a small plane nearly crashed into the side of a mountain. the faa says the single engine ended up landing safely at its destination after it stalled and descended near the devil's thumb hiking trail on july 4th. the agency is investigating the incident. scary stuff. morgan, back to you. >> seema modi, thank you. coming up, the end of apple's record run? a streak of seven straight days hitting new record highs is about to be snapped. we're going to get the full story and how to trade it in "three stock lunch" next.

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apple and back on top as the most powerful company. it overtook microsoft this past monday. and seven trading days in a row, closing at all-time highs. on pace to break that winning streak today though we're seeing that big rotation out of tech. several price target increases thoerks, this week for apple, piper sandler, needham, and bank of america. all of this has been happening since apple revealed its artificial intelligence product that's going to start rolling out this fall. more important than that, the a.i. rollout is expected to spur iphone upgrades this fall, since most older iphone models aren't powerful enough for all the a.i. features. this is the beginning of an iphone refresh cycle that's expected to last a few years. he also said more than 70% of iphone users today have a phone that's at least three years old, so they'd be due for an upgrade, pretty much regardless of

whatever a.i. features are out there. the hope, the a.i. features are going to be tantalizing enough to convince folks to upgrade earlier than they normally would. there's hope that services which is already growing by double digit percentages again will see a boost from a.i. partnerships, especially with companies like olym open a.i. and google. >> michael, good to see you. your thoughts on apple, my friend? >> thank you. steve did a good job. steve nailed it. what we're seeing today in apple is a pullback based on the regulatory news out of the eu. okay. got it. the stock's not off that much. it haez been up rather consistently, and the stock is fully guided. this stock isn't cheap. it is, i think, a core position. $3.4 trillion in market cap. it's got a little bit of a dividend. i think you could probably buy it cheaper than here if you give it some time. longer term, give it five years because i'm a buy and hold kind

of a guy. i own this stock. if i didn't have it in portfolios, i'd add to it. could i get cute on timing? maybe. but this is a stock in, i think, kind of, a core position. and i wouldn't be waffled by the eu news right now. >> okay. up next, we've got pfizer getting closer to joining the weight loss arena. >> morgan, pfizer today saying it will keep working on an experimental weight loss pill. those results should be ready in the first quarter of next year. now, this drug is a pill that's given once a day. it was originally supposed to be given twice a day, but pfizer scrapped that plan last year after people in clinical trials struggled with side effects like nausea. pfizer decided to go back and focus on the once daily option. pfizer is saying they're encouraged by the data so far. but this is still pretty early work. it could be years before this pill reaches the market, if ever.

but it's a step in the right direction for pfizer in an area they've been wanting to go but struggled to get into. and there's a lot of pressure on pfizer right now to prove that it can succeed beyond covid and find the next big thing, getting into the estimated $100 billion obesity market could be a way to do that. morgan? >> angelica, thank you. of course we know what that has meant, what a boon that has been for other players. are you a buyer for pfizer from here? >> i'm a little bit nervous about my enthusiasm for this stock. i really like this stock. i like to buy them when they're down. i like this great balance sheet of this terrific company that, yes, post-covid has tried to figure out who it's going to be really. it's had a bit of an identity crisis at pfizer. they are moving into the glp-1 drug space that has transformed so much of health care. i think that's going to continue. i think the once a day pill is always more successful than a

twice-a-day pill. so, i think you buy this stock, 6% dividend? 6% dividend while you wait with a solid great balance in a market that's moving into an area where they can gain some share and the market area for this drug is going to continue to grow. i like it. i have it personally in my own account. i'm probably at some point going to buy some more. >> money where mouth is. thank you, michael. let's go to delta now, down big following earnings. phil lebeau folk earlier to the company's ceo. phil? >> tyler, this is about supply, demand, and low airfares. and by the way, this is an industry-wide story, not just with delta, but delta is paying the price today because they're first one to report their q3 results. the industry metric to look at is unit revenue, fancy way of saying revenue per available seat mile. that's what they call it in the industry. it was down 2.6% for the second quarter for delta, worse than they expected. here's the problem. the industry has oversupplied

the number of seats that are out there in the domestic market here in the u.s. that's why airfares are as low as they are. revenues are not going to be meeting expectations. and this is a situation that is going to be here this summer. here's ceo ed bastian talking about the industry impact. >> the industry brought more capacity for this summer. capacity is up 8% for the summer. i'm talking particularly in the domestic marketplace. real demand in the second -- in the summer, anyway -- i'm saying summer between june and august -- is probably closer to 4% in terms of real organic demand growth. so, you do have an oversupply. >> as you take a look at shares of delta, keep in mind guidance for the third quarter -- there's going to be some adjustment there. they did reaffirm their full year guidance. next up, what do we hear from the other airlines? keep in mind, guys, delta is the most profitable airline in the united states. and if they got dinged for

coming in with lower than expected revenue per seat mile, what do you think we're going to be hearing from american, alaska, southwest, and united? by the way, we already heard from american and southwest in terms of adjusting their capacity. this quarter is going to be a rough quarter in terms of this revenue picture that the airlines are dealing with. and this is the impact of having so many seats flooded into the market this summer. >> very interesting. michael, your response here on delta? and i note, phil noted that maybe airfares are coming down a little bit. not where i fly. they don't seem to be coming down where i go, ever. >> i know. i can't -- people tell me about these cheap fares they get, tyler, and i'm still looking for them. i'm not finding them. look, this is perhaps the least ugly house on a really ugly street, meaning i don't like airlines. i've never liked airlines. remember what nancy reagan said, just say no when it comes to airlines. warren buffett said he was going to hire an analyst whose sole

job was to talk him out of buying an airline. delta's miss wasn't bad. the guidance for the year, as phil lebeau said, is still stable. and yet the stock isdown 6% today. so, if i were going to do it, i would probably do delta. i stay away from every one of them. i would stay away from this one. and i call it a sell. >> all right. that's pretty emphatic. michael farr, thank you. good to see you. michael is hightower -- great to see you -- chief market strategist. morgan? still to come, biden time. the president set to hold a news conference this evening with an eye on proving to supporters and critics why he should remain in the 2024 presidential race. we'll get a temperature check from washington when "power lunch" returns.

[♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. welcome back. president biden holding a press conference this evening hoping to prove his fitness to run and serve as president, as he seems to be losing support, especially financial support. megan ka sella is following the money for us. megan, i can't remember a time where we've ever seen this much

focus from a domestic standpoint on a press conference for nato. >> absolutely. and i would venture to say that most people are not watching it to hear what the news was from the nato summit this week. all eyes are on that press conference. while the president is still vowing to stay in the race, donors and strategists have begun to look at what would happen if he steps aside, where the millions of dollars he's raised so far would go. the campaign has about $91 million on hand. if harris steps up and becomes the nominee, she inherits that money. if biden and harris are replaced, the money can't be transferred directly to a new candidate, but they could send it all to the party, which could spend about a third of it in coordination with the campaign and the rest of it to, sort of, support the candidate. they could also transfer it to a super pac, which could not coordinate with the campaign but would be supporting it. the third scenario, harris remains the vice president but somebody new takes the slot. there's a legal argument to be

made that she could spend the money because it's still her campaign. because it's a gray area, they could be subject to lawsuits. guys, these are hypothetical scenarios for now. but the pressure for biden to step aside has been mounting for weeks. democrats are in limbo. fundraising has been on pause. and we've learned biden's own cam pair has been polling harris versus trump. but the chance of a fatal error for his candidacy is huge, guys. >> what's interesting to me, among many things, in that we haven't been in this territory maybe ever, is not what some members are saying but what some members of congress are studiously not saying. i'm thinking of former speaker nancy pelosi, who, as politicians want to do, was very, very careful in what she said about where the president stands. >> there is so much reading between the line heas here, tyl. you're absolutely right.

we saw the president start the week by saying, my decision is made, i'm staying in the race, we need to move on. then we saw lawmakers come out and say, we hope he makes his decision soon. when they're confronted with reporters saying, he's made his decision, we've heard nancy pelosi and others says, we hope he makes that decision soon. we'll support whatever he does. it's clear there's so much maneuvering going on behind the scenes. when nato wraps up this afternoon, the press conference is going to be most important to watch, but it's interesting to see what happens after that. we're hearing many reports that lawmaker versus statements ready, that pelosi herself asked them to wait until nato was done if they want to come out pu publicly. we're about to see a very momentous 48 hours. >> is the press conference he alone or any other leaders alongside him? >> it's he alone. that's part of the interesting thing is he really does not do many solo press conference.

this is his first in eight months. he's only had four solo press conferences since the november midterms. we don't know how long it will go, but many things to ask. >> i'm guessing he's not going to get a lot of questions about nato. that's my bet. megan, thanks very much. appreciate it. you can always hear us on our podcast. listen to "power lunch" wherever you go. wherever you go. we'll be right back. grocery store. ball field. anything, you know? [♪♪] your skin is ever-changing, take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

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dominic chu is there following the event. hey, dom. >> reporter: we have brian here from "the office." >> thank you for being here. >> my pleasure. >> you're a mainstay here. we see you on tv. how long have you been doing this and why do you keep coming back? >> this is my 17th year, which really only means i'm old now. when i started coming, i was one of the young pups. now i'm not anymore. what brings me back is the people and not just the celebrities, which is awe msawe. i'm a huge sports fan. the relationships i've made coming here every year i cherish and value. it's also the people of this community, the volunteers. on every hole there's three or four volunteers. many have been here every year. they've been here for the 17

years i've been here and much longer. it's a very special place. beautiful as well. it's my favorite week of the year. >> we watched earlier this morning american century ceo jonathan thomas tee off with trevor lawrence. there's nfl guys all over the place. fans are going crazy. talk about the energy here. >> it's in crecredibleincredibl. that's what i mean. the number of nfl quarterbacks now, past or current, that i have real, meaningful relationships with because of my time here and we make time to see each other through the year. it's really, really special. the event seems to grow every year. i heard crazy numbers, 75,000 i think last year. they're expecting even more. seems like they break a record every year. it's a great event for the fans and the interaction, hand to hand combat, if you will, out on the course.

it's a lot of fun. >> there's a dynamic where the celebs are stealing the show here, but it highlights this idea that with all the celebrities out there, the celebrity world, pop culture is changing. certainly for you guys as actors. wonder if you might take us through what you're thinking about the craft, your trade, artificial intelligence and everything permeating through the business these days. >> well, it is a changing time. even since "the office" premiered, which is crazy to say, in 2005 -- almost 20 years since we started. the number of changes with streaming now, with a.i., stuff is changing a lot. fan interaction, social media obviously has some value. it has some difficulties. that's why a place like this, like here, where we're able to have a real connection with those fans who have been watching for so long, be it

sports or entertainment, it's very special. >> if you had to say one thing with regard to what actors have to do in the future, what would it be? >> wow. it's a great question. i think that a.i. has a place and it will exist. as long as it's used responsibly, it can add great value to entertainment. the autonomy of actors and the creativity of actors and individuals and the collaboration between directors, writers, actors that create television and movies that people love so much, ultimately i think in the end we'll still experience that value. >> brian, i wish you the best of luck this weekend. i'm going to send things back to you. you can watch live coverage of this on nbc and nbc sports this entire weekend. >> please say hi to brian who i met a month ago at a golf

outing. great guy. nice to meet him. i wish him the best. friday to sunday watch the american century championships, nbc, golf channel, peacock, anywhere you want. we'll be right back. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy to-use tools make complex trading less complicated. custom scans can help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley

okay, team! oh, thank you so much 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 just during our last video call i'm learning a lot welcome back. quick check on the markets. as you see there the nasdaq taking it on the chin down 1.76%, 328 points. the dow industrial meantime are up about eight 100th of a point or 30 points. the annual alanco conference is happening right now. julia boorstin is there. she sat down with commissioner

roge roger goodell for an interview. >> reporter: the commissioner saying the league is making big news. take a listen. >> we had a tremendous amount of interest and we believe that this could make sense for us in a limited fashion, probably no more than 10% of the teams. that could compliment our ownership and support ownership. we think we're moving in a positive direction and hopefully we'll know something by the end of the year. >> reporter: that 10% would be lower than 30% that other major leagues typically allow. the commissioner weighing in on the deal between sky dance and paramount global saying they'll evaluate whether they should renegotiate with cbs under the new ownership. the commissioner said as far as

viewership, he believes the taylor swift element was a positive one. there's been a lot of chatter about expanding the regular season to 18 games which would involve moving the super bowl to president's day weekend. the commissioner noting it's a decision that would need to be made alongside the players association. >> julia, beautiful out there. thank you for watching "power lunch." >> i'll see you at 4:00 p.m. on "closing bell: overtime." welcome to "closing bell: overtime." i'm scott walk at the new york stock exchange. we begin with a market meltup. ed yardeni will be here to discuss. we start with the russell today which is ripping to say the least. this could be the best day of the year for small caps today after that softer than