waxelcome to "power lunch." the record rally rolling on today, though the leadership looks a little different. today it's the russell 2000, the dow soaring to new highs getting within 150 points on most of d 41,000. >> that's a quick rise. the s&p only slightly higher and the nasdaq has been lower for most of the session. we call it massively outperform

the dow so far, the s&p still up 18.5%, nearly 23% for the nasdaq despite today's declines. and the handful of small -- small handful of dow stocks slower, microsoft, apple and intel are among them. the tech words, in other words. cat showing some momentum, up 4% and 10% in the past week. boeing and home depot also contributing. >> but the biggest contributor to the dow's record rally is united health, adding 150 points on its own after reporting results this morning. for more on that, let's get to our bertha coombs. >> united health seeing its best day's performance in a year after second quarter results, beat on the top and bottom line. posting nearly $100 million in revenue, $4 million in profits, driven by growth in commercial and rmx. the company's pharmacy benefits unit. ceo andrew whitey saying the pbm

has brought on a record number of clients. the first quarter change is still being felt. united health sees 60 to 70 drent negative impact per share. that's up. saw a higher than expected medical cost ratio, the ncr of 85.1%. the percentage of each premium dollar spent on medical care, attributing that in part to the suspension of reviews during the outage. executives say that's being addressed. beyond that they say payments in claims are back to normal, which bodes well for competitors. you can see they're getting a lift today as well. back to you. >> indeed, bertha. our next guest recently switched his overall market outlook from bearish to neutral. what's driving his outlook and which sectors still have opportunity in joining us to discuss his thoughts, greg branch, founding partner of branch global partner advisers. that cpi report part of what

turned you around here or continues to have you around, at least at neutral? >> yeah, i think that was the final piece, john. when you look back at my thesis, it rested on three things. the first was that the core growth the last 16, 18 months have been in a narrow band of 30 to 40 basis points. while we had head fix of 20 basis points, we never broke out of that band and that doesn't get us to a sustainable 2%. when we saw the number from may at 0 percent and then that followed with a ten basis points hike -- ten basis points increase in core, you had some belief or you had some conviction that we were in a new paradigm, a new stepdown. that was supported by the fact that unemployment, which had also been one of the challenges in changing my view where it was in that stubborn 3.6, 3.7% range. for the last three months has ticked up and now we sit at 4.1,

a very short distance from what the fed said it needs to get sustainable 2%. lastly, occurring coincidentally was the first time we saw a real break in the housing component with only 20 basis points. that was the lowest we had seen in three years. all of those things occurring at the same time, i think, makes is really hard and made it hard a few weeks ago to continue with a bearish posture. >> what are the sectors you should be putting money in? >> i think that depends on whether or not you think this is a sustainable rotation, jon. i don't yet have that conviction. so, our exposure and where we're targeting our exposure continues to be the same when we were forced to widen back in december when the fed full pivoted. for us, that means one of two things -- that means either focusing on the names that are driven by these generational secular tailwinds of a.i. and cloud and there you're going to have to come to gribs with

whether or not valuation is extended or whether these names will grow into the valuation. our personal view is that the multiple isn't going to really matter when the economy starts to slow and there's some of the few names putting up 20% plus earnings growth. the other area that we like to focus on and where we're looking for more names is where we have a structural imbalance in supply and demand. when you look at some of the metals and minerals and materials used for the clean energy transition, for the transition to evs, the lithium, aluminums, copper has gotten all of the attention, but there are other names and other materials in there where we think there's some value. particularly if we're going to have a small cap rally, which has caused some of the drag in the sector, as many of these are down market cap. >> greg, i don't know if this is quite newsworthy. so, you've changed your market view. i guess we can't say -- this is a huge development. this is big.

so this is -- a lot of this is because of the cpi. but you're not worried this is end of the business cycle, watch out for the more labor market slowdown, this is big news. >> this is not the end of all concerns, kelly. but i always said that thesis was very data driven. when all of the data you're basing that thesis on pivots, you have to reconsider your view. now, will i have a concern come fall, winter? probably. because we are entering the down part of the cycle. i'll have to look and see if my view of 2025 matches, exceeds or is far short of consensus. >> let me back up. you were often in the minority saying the fed not only needed to hold rate but hike them and you were concerned inflation would remain. a lot of viewers and investors have shared that point of view, but do you think intellectually speaking, we have to put that away now? there's no real case to be made for a hawkish fed at this point.

>> for right now, yes. >> i've long resisted the notion the terminal rate was in. my prediction in 2022 was 6%. we came close. but i think the terminal rate is in for now, barring some external shock. >> wow. >> greg, i'm looking at what's unusual. the kre regional bank index is up 3.8% at the moment. the kbe 3.5% at a time when the russell is also up, what was it, close to 3%. so, we're talking about the dow and the nice boost that united health and boeing are giving it, but really that small stock rally, small cap rally we saw on thursday maybe having a bit of an echo that it's not alone today. what does that mean to you? >> well, i think it's typical when you think about a rate cut rally, jon. the small caps and down market

caps are those most susceptible in a high interest rate environment. i think you're seeing a relief rally in some of those companies that are the least well positioned to endure a much higher for much longer environment. i think that you're seeing a bit of hope. part is gain taking as well. there's been a massive run here since our low of 4100 in october. so, i think it's a little bit of both. we'll see if this can sustain itself over the next few months to give us confidence this is a permanent rotation. >> wondering if it's one affirming the other. greg branch, thank you. branch global capital advisers. >> big development. still to come, td cowen breaking down what jd vance could have. as we head to break, let's get a quick power check on the markets. match group on the positive side, up 7% on news the activist investor starboard has acquired a 6.5% stake. they're calling for them to

improve growth and profitability or to otherwise consider going private. on the neglative side, charles schwab shares are down 9%. "power lunch" will be right back. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

[crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪

welcome back to "power lunch." it's an unlikely match-up, trump's running made jd vance agrees with the high-profile biden regulator, lina khan, saying earlier this year she's doing, quote, a pretty good job on tech antitrust. td cowen noted the veep hopeful express -- saying vance could have a major impact on regulation especially given his time at the firm in 2010.

let's bring in paul galante. it's great to have you here. we've been doing a little bit of going back in the history books. the biden administration, other than the at&t deal -- anyway. there was not much they were trying to stop. do we really think a new administration would be more proactive, more like lina khan and trying to block many deals from happening? >> i think going into yesterday, i would say before yesterday, we felt pretty good about what a trump victory would mean for the tech sector, mostly deregulation. if you listen to what senator vance has said over the past couple of years, including where he used to work, silicon valley, trying to fund companies that challenge the big tech companies, i think if vance is the biggest voice in trump's ear on policy, that's going to shift our view a bit towards being more cautious and what washington means for biggest tech companies over the next few years. >> but only in the area of big

tech? >> big techest is the biggest reason. here's how i would explain it. i think a re-elected president trump would want to let the biggest tech companies dominate gen a.i. for the next ten years because gen a.i. is driving the stock market higher. and i think president trump views the stock market as his daily report card on how he is doing. i think vance views it as how to disrupt corporations. if. >> this doesn't surprise me. first time around, president trump thrived in unpredictability, right? in challenging traditional power structures. it's not like he seemed to be a big fan of mark zuckerberg or what google was doing. doesn't this provide a potential trump administration the second time around with optionality on what it's going to do and keep some of these silicon valley titans on their toes?

>> i think that's right. i think of vance as intellectual support for a lot of trump's instincts towards big tech. and vance spoke at a conferences a couple of months ago. he said he's not sure where trump will land on a loet of tech policies but he did specifically call out google and meta as companies that are basically in the way of trump's agenda. he seemed to support that. so, if he is given -- if vance is given the tech portfolio within the white house and he has day-to-day focus on it in a way a president really cannot, that could be a problem for these guys. what i mean specifically, if vance is allowed the people to run the dtc, the antitrust division, and commerce department, which all run tech policies, there's actually an analogy to the clinton days. clinton handed off telecom policy to vp gore. gore influenced the ftc in an

anti-incumbent direction. if he lets vance run tech, that's a different outcome than i was expecting a few days ago. >> i would draw a distinction between -- it seems like former president trump wanted to have more of an impact on how some of these big tech companies operate, the types of decisions they make about what content gets out there but not restrict m&a. a lot of libertarian leaning voices in silicon valley that are backing former president trump right now would very much like these big tech companies to be able to buy their startups, no? >> yeah, that's the big divide in silicon valley. there are venture capitalists who want to fund companies and venture capitalists that want to build challenge. if you look at what jd vance has said, he wants these companies to rise up and challenge big tech, not just get bought by them. that's as you said, fundamentally different from where the other side of silicon valley is. >> just a comment on that. i think we all recognize innovation when we see it. if any of those small startups

had been tiktok, they would have successfully done so. unfortunately, a lot of them aren't. so they have a hard time piercing through -- what, you don't think so, fortt? >> no. >> if it were me i would have a whole debate hour with jon on my crazy ideas. paul, i'll direct this to you for observation. some say it's self-serving, that jd vance wants to do well by the small startups his friends would be funding. do you think america sees it that way, that big tech is blocking innovation? >> i doubt the american public is that deeply sophisticated on it. if you look at some of the polls, depending on how you ask the question, there's skepticism. directionally it's fair to say over the past five, seven years the american public has become more concerned with the power of the big tech companies and they support regulation. does that mean antitrust, privacy, 230 repeal? who knows. there's a decent amount of public support, driven by trump himself when he was president, against the tech companies that was not there in, let's say, the

mid-2010s when obama was president. >> i think there's widespread recognition of the speech issue but some innovators who have been successful, again i'll cite tiktok, show there's room for someone new to come into the room and do things a different way. we're all wondering what maybe that next killer product is. paul, appreciate it. paul gallant. little tech is what they call vance's aversion to big tech. >> one insider at a well-known startup tells me that vance is the silver lining for little tech if biden loses the election. another person at a mega cap brushed off his selection telling me trump has said worse and biden is actually trying to break up big tech. little tech means a startup ecosystem. younger companies that have to compete with a trillion dollar market cap incumbents. any optimism that another trump administration would be

friendlier or at least less hostile to the tech industry deserves another look as your last guest was saying. as do any deals that will undergo regulatory scrutiny, like google's bid for wiz, which one analyst yesterday called just the tip of an iceberg in a massive m&a cycle for 2025 if trump wins. whether vance actually keeps his anti-big tech stance in a trump administration, that's certainly an open question. in the meantime, it could help to rally support among more silicon valley leaders, especially those aligned with little tech. his ties go back to peter teal, more recently vance has been close to david saks and vp elites switching camps. marc andreessen, horowitz are planning to donate to trump. anti-big tech and anti-m&a are

two very different things. if support is, in fact, building among the vc community, as it looks to be, they still want exits. and they may ultimately prefer returns and liquidity to the politics of it all. money speaks, put simply. >> they don't care about politics. it's all about returns and equity. silicon valleys, returns and exits are the policy. there's only so much you can harass your mark zuckerberg and jeff bezos. you can harass the billionaires and make them into the bad guys. as soon as you start the exits from happening, the startup ecosystem eats itself. >> it depends on how greedy the vcs are, right? you take a potential deal, wiz and google, wiz to get a $23 billion valuation, according to reports, but could that company ipo and be even bigger in the public markets? that depends.

and then they're kind of talking out of both sides of their mouth, if they agree for wiz to be acquired by google, which vance has railed on for years versus growing on its own. it would only make google more powerful. >> are vcs ever greedy or ambitious? >> i was going to say, you had a great articulation. >> deirdre, on the a.i. thing, where is this -- there's been a lot of early talk about what the a.i. policy would be. would it be hands off or hands on? >> early indications is it would probably be more hands off because any a.i. regulation could hurt the startup community and maybe benefit the incumbents. you see the mega cap getting even bigger, leading the way in terms of generative a.i., microsoft, amazon, google. to your point, kelly, i know you're talking about tiktok, the fact an openai is able to exist and become a more than $80

billion company. startups can succeed without that regulation. breaking news now. let's get to steve kovach. >> yeah, carlos watson, ceo and co-founder of aussie media has been found guilty on all three counts in his fraud trial. there's a charge of securities fraud, found guilty. wire fraud, found guilty. aggravated identity theft, also guilty. we should note the doj says this has a mandatory two-year minimum prison sentence up to 37 years. and this trial has been going on for the last few days. we know watson was the co-founder of ozy media and faced allegations of misrepresenting how much money the company had as he was pitching investors and the thing "the new york times" broke a couple years ago about one of the co-founders impersonating a google executive on a call with potential investors as well. we see him walking out of court

here. jon, back over to you. >> steve kovach, thank you. further ahead, the san francisco fix mayoral candidate sharing his plans to revitalize the bay area. we'll dive into the details when "power lunch" returns. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. ♪ i wanna hold you forever ♪ hey little bear bear. ♪ ♪ ♪ i'm gonna love you forever ♪ ♪ ♪

c'mon, bear. ♪ ♪ ♪ you don't...you don't have to worry... ♪ ♪ be by your side... i'll be there... ♪ ♪ with my arms wrapped around... ♪

welcome back to "power lunch." the dow soaring to new highs. up almost 700 points or 1.6%. the s&p is only up 21. the nasdaq is lagging behind. let's get out to chicago for a look at how bonds are trading amid all of this. after the uk went below 4%, i'm seeing chatter about whether ours could follow suit. >> it's very interesting. today despite the fact we had super strong retail sales, extremely strong revisions to last month's retail sales, but yet we see the equity markets really running pretty good, especially as you pointed out, the dow. shouldn't we be looking at good news is bad news? if you look at the field curve, we get some explanations. the two-year today since 8:00

eastern, yields keep moving higher. as you move down the curve, you look at 10s, the right side is lower. the 30-year, down on the day. what's going on? we're reversing some political trade on the long end that's focusing on debt deficits and what happens with tax policy and spending. on the short end, the short-end and two-year note looked at retail sales and says, a-ha, maybe this throws a fly in the ointment with the ease built in. no matter how you slice it, we continue to see there are parts of the economy bucking the notion that the economy is slowing. jon fortt, back to you. >> thanks. let's get to julia boorstin for a cnbc news update. jon, moments after a jury found bob menendez guilty in his federal bribery trial, his fellow democrat chuck schumer demanded his resignation.

the senate majority leader called on menendez to, quote, do what is right for his constituents, the senate and our country, end quote. menendez did not answer questions whether he would step down as he left court but he pledged to appeal the verdict. authorities evacuated 300 homes this afternoon in the southern illinois city of nashville, warning of the imminent risk of a dam failure. a flash flood warning is in place this hour for the city. it comes after heavy rain fell across the st. louis region earlier this morning. and six people including two vietnamese americans were found dead today in a luxury hotel in downtown bangkok. officers said they were found foaming at the mouth, the sign of a potential poisoning, according to the associated press. they had blocked several rooms at the hotel under seven names. they're still looking for the seventh person. jon, back over to you. >> wow, okay. thank you. as pressure for biden to step aside began mounting in the days following the presidential

debate, a handful of megadonors threw an extra life line to his campaign. but is the confidence still there, especially after trump's recent gains? "power lunch" will explore.

welcome to the now way to network... they switched to juniper's ai-native network. now everyone's so productive, they're operating at a higher gear... now their network is self-configuring, self-detecting and self-healing. so their it team deals with up to 90% fewer network trouble tickets. (sonic boom) whoa, what was that? just the sound barrier. that's the now way to network at work—with real ai—putting you in the fast lane. (♪♪)

municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free. now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least $10,000 to invest, call and talk with one of our bond specialists at 1-800-217-3217. we'll send you our exclusive bond guide, free with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income are federally tax-free and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217.

welcome back to "power lunch." second quarter fund-raising numbers are in for the presidential campaigns. we did see some reaction the last few days of the quarter to the debate on june 27th. megan looking at those numbers for us. >> as pressure was mounting for biden to step aside after his debate performance in late june, at least a few big donors were opening their wallet to support him. new filings show eric schmidt was among a group of wealthy donors giving money to biden between that debate on june 27th and the end of the month. schmidt gave a quarter million dollars. amos hostetter gave $1 million and vera wang, as well as herb

simon. both gave the maximum donation of $930,000 in that same period. but the second quarter filings mostly reflected the momentum behind donald trump. he outraised biden $331 million to $264 million. and pacs backing trump saw a boost. h the newly formed america pac with palantir co-founder, sequoia and paypal co-founder. trump -- the records show he had not donated before the end of june. this comes as many in the tech world are moving toward trump. we can also confirm today that marc andreessen and ben horowitz are expected to donate to trump this election. you can see the shift among a group that historically had been closer to democrats.

guys? >> can you give us any context around the $45 million a month sum, which reportedly is going towards a lot of grassroots get out the vote efforts that we have seen democrats excel at. >> $45 million is a huge amount of money any way you slice it. for comparison, the campaign sometimes bring in $80 to $100 million for the month themselves. to get almost half of that from one donation would be huge. as you said, if it gets spread out among down ballot, obviously there are many more races to fund, hundreds of house races, and a number in the senate as well. there's a lot of places for that money to go but no underestimating what it could do. what i think republicans are hoping for here is that that pac and some others are going to start to fund a really strong ground game for the trump campaign. that's opening new field offices, get out the vote efforts, canvassing, going door to door. that's something crucial for the trump campaign because so far they haven't been that interested in that. they said they hadn't needed it.

it's where the biden campaign has seen their biggest advantage. that's how they thought they would win. if we see them more on par, that will make a big difference. >> for more on this, let's welcome in don peebles. i have to hand it to you, they said, what does he think about biden, he's a democrat? i said, is he? clear it up for us. democrat, republican, does it depend on the candidate, which of these two? just talk to us about what's going through your mind as you watch this play out. >> i'm a life-long registered democratic and accord to the democratic principles however i vote for the person. and i think that joe biden has, you know, let us down, frankly, he was supposed to be a transitional president. and chose to be more than a traditional president and trying to hold onto office. but i don't think this is going to be about the presidential election anymore. i think donald trump is poised to win it. i've said this now for a couple

of months. if circumstances continue, especially after the assassination attempt on his life, i believe that he is poised to be president. these cases are getting dismissed. i wouldn't be surprised if the new york cases get overturned soon. and i think he's poised to be president. now what's going to happen is there's a battle for control of the u.s. senate. >> don, what do you make of libertarian-leaning silicon valley investors who seem to be rallying behind donald trump at the moment. i'm not going to say it's silicon valley in general, because there's a lot in silicon valley besides libertarian leaning, but at the same time jd vance has wanted to limit the influence of big tech, there's an ecosystem here that gets affected in lots of different ways by policy. how do you think this turns turns out? >> what did churchill say, if you're young and not a liberal, you have no heart. and if you mature and you're not

a conservative, you have no brain. what has happened is silicon valley is maturing and supporting people who are supportive of their agenda economically overall. and there is no comparison to this president we have now versus a donald trump presidency. the markets are showing that as well today. i think the markets are reacting to the fact that he is highly likely to be president. and jd vance makes a big, big boost for him and a super smart decision. which if things go the way they think, i think you'll see a republican in the white house for the next 12 years. sort of like reagan and then george herbert walker bush. >> i don't know if you consider yourself young or old, but tell me what you think the impact on real estate is from the likelihood you just outlined? >> well, i think it will be a very positive impact on real estate because the regulatory environment right now is what's creating a tremendous amount of stress in the real estate industry, especially the commercial real estate industry because it's forcing banks to

make bad decisions right now. the banks right now should be sticking with their customers, they should be helping the borrowers work through these challenges and the regulatory environment should be more relaxed. i think under a trump presidency we'll see that. and so i think overall tax policy will incentivize investments, especially in urban centers. there's been no federal effort to incentivize tax policy, reinvestments in commercial real estate and some core markets like new york, san francisco and others. local and state levels, but not at the federal level. there's been a lack of leadership in terms of economic growth for our country in terms of businesses and small entrepreneurs and midsize entrepreneurs. >> in other words, directing government funds for that purpose, which is one area the parties seem to align. you mentioned the senate. why do you think it's going to be so significant and the area to watch now? is there anything the democrats could do to change your mind about the prospects? >> no, i don't think the

democrats will be able to attract a replacement for biden because it's almost inevitable trump would be ee lebted. if you think about what's happening now, joe biden's approval numbers are at the level of jimmy carter. frankly, joe biden doesn't even have the skill set right now that jimmy carter had. and then you have donald trump who is basically say he's reagan. and you have economic policies. he's been president once. you've got an economic environment that's conducive to him. i think with this migrant crises, joe biden's policies on immigration have put new york city in such a bad place that new york state is definitely in play in terms of the electoral college. and if that's in play, what it tells you is that you're going to have circumstances where some of these swing states and some of these states that have been more moderate democrats, they have some risks that these senate candidates will lose.

i think that is a likely possibility. i don't think the democrats have a chance now at the house, so they might as well rigwrite it and spend their money on trying to control one chamber. the morning after the election, i think you'll see trump as president, a republican-controlled senate and you'll see a republican-controlled house of representatives and a much more pro business type of environment. in fact, where i think the democrats have lost two of their core constituencies they've let american jewish voters down, a core constituency of theirs with how they handled israel. that's also an american issue and our best ally is israel. and let african americans down continuously. economically, educational policies and others. and this migrant crises has turned the tide against democratic candidates in major cities around the country. i think you'll see it in new york city. >> that's why i wanted to start out by saying, you are a democrat, right? because i listen to this and i think, well, it sounds like the party that you support is not

maybe with you anymore in the areas you think are significant. we don't have to delve further into that. i would say, as we see people starting to line up with big dollars behind the presumed winner, as you seem to agree the trump administration would be here, would you join in that, either with dollars or support in other ways and hope that maybe, listen, could you have a hud secretary? you've got some thoughts. what do you think? >> first of all, i think the democratic party has been hijacked by the far left. i think at the rate we're going, the democratic party is going to be in a position where it's going to have to change quickly and/or it will become the minority party. i've known donald trump for a long time. i have been an admirer of his success. i think he's been inspirational. i think he has been unfairly targeted with lawsuits and prosecutions and the like. i think he's been unfairly vilified.

and a vilification of him. so, i want him to succeed as president because if he succeeds, america succeeds. i don't think that he is going to hurt our country. i think he'll help it. i think he will do things to move african american entrepreneurs forward, which is something that needs to be done. and i certainly want to work with him to make successful and would encourage other democrats to do the same thing once ee elected. >> what is election day, november 6th and we can move on. appreciate your thoughts. good to see you today. don peebles. still ahead, cnbc getting an exclusive look into a mayoral candidate's vision to revitalize the city by the bay. we'll get a live report when "power lunch" returns.

the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo

(♪♪) (♪♪) 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." we're just getting some comments from fed governor kugler speaking at a conference in washington. she says it's likely appropriate to begin easing policy later this year if the economy evolves as expected. something she says is bolstered by the continued rebalancing in the labor market. she goes on to say, if the labor market cools too much and unemployment continues to increase, it would be appropriate for the fed to cut sooner rather than later. she added, if inflation progress stalls, they should hold the inflation rate for a little longer. meanwhile, san francisco has been one of the cities slowest to bounce back from the pandemic. 37% of its office space is vacant, a record high, according to real estate firm cbre. now one mayoral candidate sunday veiling plansfor a revitalized downtown. our kate rogers got a first look. kate? >> reporter: hey there, kelly. leading mayoral candidate mark farrell is reenvisioning downtown san francisco.

he gave cnbc a first look at proposals that include tax incentives for businesses that relocate downtown and those that get workers in the office for days a week. he says his project is akin to other anchor projects in new york city with like hudson yards. now, this comes as data from cushman and wakefield shows last week san francisco office vacancies are at a record, 34%. he plans to cut that number in half by the end of a first term. >> right now if you come downtown, the issue is a lack of people. it's a shell of what it used to be. so, part of tax incentives needs to make sure employers are making sure their employees come back to work multiple days a week in the office to create that vibrancy that will really bring the features downtown forward. >> reporter: now, another piece of the plan, a downtown park, which you can see right now on the embarcadero. that's in our backyard at cnbc. he also has aggressive tax

incentives and incentives for moving commercial buildings to residential for commercial stores. >> yeah, i spent a bit of time in the bay area and san francisco. that strikes me about the state of it today say, versus, 20 years ago s how much they've invested in office downtown. seemingly to it the exclusion of residential and affordable residential. so, when something like this happens, that's why there aren't people around. the residential neighborhoods look healthy but not downtown. >> reporter: that's part of this proposal. he wants to work with housing and zoning, as you know, notoriously difficult with a lot of red tape in the bay area to change some height requirements for buildings that are residential so they can convert more of that potential office space or empty retail, for example, into housing. he says, get tens of thousands new residential units and residents here in downtown. >> fascinating.

kate rogers, thank you. well, coming up, we will check the charts on some key names making moves. it's time for technical support. that's next.

(reporters) over here. kev! kev! (reporter 1) any response to the trade rumors, we keep hearing about? (kev) we talkin' about moving? not the trade, not the trade, we talking about movin'. no thank you. (reporter 2) you could use opendoor. sell your house directly to them, it's easy. (kev) ... i guess we're movin'. .

welcome back to "power lunch." let's get some technical support. our chart of the day is jay woods, chief global strategist at freedom capital markets. first up, ishares russell 2000 etf up 12% in the last month. the russelling to nicely today as well. >> it is and has room to run. what we want to do is put this in perspective. what i have here is a four-year weekly chart. what did it do last week? we two back to 2022. it broke above this level at 212 and is continuing its run today to 225. this is strong action. you have a long rounded base. we've been waiting for this to happen for a while. when the russell moves from october 27th to december 23rd it goes quickly, joins the party, catches up, announces to everyone we're here. it was 27% here and then we've gone sideways, consolidated and

we get to the third quarter people are rotating out of the mega caps, some of their big winners and pausing and where are they going, they're going into the russell. i think 24 had,-- 244 the old all-time high is the next stop over the next six to ten weeks, a 27% gain from this bottom to that top and may pause there. it's finally going to join the all-time high list and see where it goes from there with the fed lowering rates good chance it breaks it. >> sounds like tom lee is not alone. next up s&p regional bank etf. kre. it is up nearly 4%. >> yeah. this is one of the largest segments of the iwm, which is, you know, the s&p or the russell 2000. what are we seeing? let's go back three years. it's broken a major town trend with this move over the last few days. it moved on a gap. we like to see gaps. and continuation. the banks are reporting earnings. pnc is up and didn't necessarily

crush it, but the momentum is there. when you see trends like this change all of a sudden if you want to bring it into a more narrow range the last year this is a major breakout. the trend is changing, going up, a lot to reverse. what you want to watch in the regional banks is the 56 area where we're trading at now, the old support before it broke down during the regional banking crisis. breaks that, we have a clear run to 65 which is here and if not all-time highs we're talking just under 80. anything can happen quickly. there's momentum. momentum begets momentum. i like the regional banks to continue the upward pace from here. >> silicon valley bank in the rearview mirror. bank of america topping q2 estimates on better than expected. we like bank of america here. bank of america, if you look again, three years, it was going down for a long way. if you want to back this thing out this has a lot to reverse.

never gotten back above its prefinancial highs. before we get there, it had a nice uptrend but before that, it broke out and what we want to do is show the line of resistance. it ran up, came back in. i'm getting a little too many lines. broke this level. it consolidated where old resistance became support and took a leg higher continuing in that today. the momentum is there. the earnings are there. a fed easing is there. i think a $50 target over the next four to six weeks, very possible. and then if we get past that 50, 55 all-time highs, when you look at goldman and jpmorgan, all-time highs. i think bank of america is going to follow in their footsteps and a long time coming. good to see the stock make this leg higher. >> especially goldman and bank of america not 2023 anymore. thanks. >> exactly. >> be sure to follow and listen to kelly evans. >> anywhere you go.

"power lunch" podcast, you can download that on any platform. back up with the dow up 700 points on this monster run. stay with us. 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.

♪ ♪ ♪ ♪ thanks for coming to our clinic, ♪ ♪ ♪ ♪

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or

visit coventrydirect.com. - [narrator] we just shipped our millionth monthly coffee subscription box so we're sending custom thank you gifts to our team. our custom ink rep is just as excited as we are and knows what great quality products to get. celebrate your milestones with custom gear. get started today at customink.com. welcome back. pretty strong market data to say the least. the market up 1.8%. the s&p trailing that but still higher and the russell is up sharply. i was going to say the nasdaq that is lagging. >> yeah. we're not used to talking about 700 point days on the dow. granted with dow near 41,000, that's not as big a percentage as it used to be. still comfortable and a contrast to thursday when we saw the russell outperforming everything slumping. now in large part thanks to the

banks we see a lot of action across the board. >> earnings, lower yield, the 10-year has been slumping, giving that target of, you know, as a possibility here. when greg branch gave up his hawkish position and turned bullish. >> you have to see how this all ends and that means "closing bell: overtime" at 4:00 p.m. >> see you then. thanks so much. "closing bell" starts right now. >> and welcome to "closing bell." i'm mike santoli in for scott wapner. this make or break hour begins with the revenge of the rejects. the unloved and under appreciated parts of this market, that small cap, banks, transports all continuing their ferocious comeback, started about a week ago against the former mega cap leaders. take a look at the scorecard with 06 minutes to go in regulation. the s&p 500, participating up about 0.5% at a closing record right now. the intraday closing high, 566 for those who are superstitious.