rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. ♪ ♪ welcome to "power lunch" alongside kelly evans, i'm dominic chu. as the business world is digging out from a global control outage, crowdstrike shares are down 12%. it said the microsoft operating system was behind the outage. we'll get more into what was affected. >> shares down almost 12%. as all the major averages are lower on the day, the dow fell down 370 points.

on the week the dow and russell are posting gains. united health a huge help but the s&p and nasdaq down lower, with worst week since late april. let's get to the top story, the i.t. outage crippling the business world. let's bring in steve kovach for what happened and the chaos that ensued. you're hearing the superlatives about the biggest i.t. outage in the history of mankind. it's big. >> let me go over what we know so far. we're developing left and right here. crowdstrike, which caused so many windows pcs to reboot and show that blue screen. i saw one backstage. taking down operations in a slew of companies from tv networks to airlines like delta and united, banks, 911 call centers, u.p.s.,

fedex. the most important thing is crowdstrike said it's not a hack, not a cyberattack. crowdstrike pushed an update that caused the outage. the update has been removed and a fix has been deployed. some folks are seeing their systems recover. crowdstrike's ceo apologized for the outage. >> i want to personally apologize to every organization, every group and every person impacted by this. >> it's unclear when everything will be fully online. he also told us not everyone's system is going to fix automatically. you may need i.t. workers to come over and reboot their system. posted on x, they're working closely with crowdstrike to bring systems online. the department of homeland security said it's working with crowdstrike and microsoft to

assess the outages. the national security council is monitoring the situation. president biden has been briefed. elon musk said he's deleting crowdstrike from his systems. it's not clear which part of his company that applies to. you can't just delete crowdstrike. cnbc.com reporting some tesla systems have been hit with the outside, possibly impacting production. meanwhile other cyber security names are up. crowdstrike down almost 12% right now. we're waiting for more updates from crowdstrike and microsoft when everything will be online. the most important question what happened, how does it not happen again? >> that's what we're going to open the show with. crowdstrike down following the cascade of those i.t. outages. our next guest lowered his price

target for the stock, but says no one fully understands the scope of the disruption just yet. calling it, quote, unquote, an unprecedented event for the industry. joining us now is peter lavigne, also chris pearson, ceo of black cloak. thank you for being here. i'm going to open it up with chris pearson because he's a member of this industry and to maybe ask how deep this could go. crowdstrike is a major player when it comes to cyber security, a large competitor out there. what exactly can the framing be about how big of a deal this is, chris? >> this is going to be as big as it gets. the only bigger type of incident affecting windows computers would be something happening to microsoft. on corporate devices, anti-virus for the corporate realm is what

crowdstrike does. they have 50% market share for some of the largest companies globally. when this happened in terms of a library update, bad update pushed through the night, it literally caused crowdstrike to identify a file on the system as being bad, causing it to go to a blue screen. literally folks, if their computers were open last night, servers always on, this literally basically bricked those devices into that blue screen requiring updates to them in terms of some items removed and/or manual updates. this is as big as it gets in terms of global disruption caused by an i.t. cyber security company. >> it's interesting. i started my career post college on wall street in 1999 and just around then we were getting set for y2k. i was part of a team that had to

work 24 hours a day in shifts around the y2k new year's celebrations. now i'm reading across social media that this it what it would have liked like had y2k come to fruition. peter, when it comes to cyber security, how big of a player is crowdstrike? what market share do they have for companies that use cyber security systems compared to palo alto networks? >> crowdstrike has 30 to 50 billion end points where they offer support. you've seen that today on the global reach. if you think about their market present point, they own that market. palo alto is more on the marketing side. crowdstrike owns the end point market. it's way too early to predict, i

think, the fallout from what this looks like. we'll see updates today and this weekend on how this gets fits and how buyers of this technology view them going forward. >> peter, what happened? >> seems like there was an update to a content library, meaning there was malware and crowdstrike sends it out to all the devices so the end points know look out for this new attack. it was a content piece that was unfortunately misconfigured. the question becomes -- investors look at it two ways. if you own this stock, you've done well. stock it up on the day. george is a good executer and operator. then it becomes how did this go wrong? we have to wait and see. >> chris, same question to you. describe to a layperson what

happened and how was this allowed to happen. we talked about this with the boeing jet that had the issue in january. what was the point in the manufacturing process that might have allowed for this to go out the way that it did? >> i mean, it does bear some reflection that anti-virus companies, once again, crowdstrike is more anti-virus for the corporate realm. it falls under that category of edr, end point direction response. mcafee had a bad push of a library file almost seven years ago. things like this have happened, just not the global scale and market consolidation that's happened. you're looking at easily 50% of the largest companies on the planet having an impact. what actually happened? there are rule engines that comprise large companies like crowdstrike or sentinel one or

carbon black in the same category. those exist running on the actual device, running on the servers. every single hour, every night, every day there are library updates that happen that identify new pieces of malware and when that pattern is seen in the future, it will stop it or block it. what has happened probably behind the scenes is that the bad library entity, entry, happened at crowdstrike that essentially misidentified a known good file as being bad. once that file was quarantined, if it was necessary to run the computer, you have the computer unable to run which results in the blue screen of death. it's interesting. you're talking about the largest companies, the most steeped chief security officers out there, all of them have an n

minus one type of pattern of deploying new libraries. new libraries never take effect on day zero. they take effect one day into the future so companies can make sure nothing bad has happened, nothing bad alters their systems. clearly in this case something happened that that programming, that control was not adhered to and it was pushed on everyone and caused the results you see today. >> peter, this kind of touches on my next question what was just discussed here. what's the proper way to roll out an update like this? we had the ceo of crowdstrike on a couple hours ago. he was saying this is normally contained. we do it in a cascading way so it's easy to pull it back if there is a problem. that doesn't seem that happened here. it was such a broad rollout that it impacted so many people before they could stop it. do you think the rollout of the

update was done properly? >> clearly it wasn't. this was a really bad operational misstep on crowdstrike's part. if you look back historically, execution -- it's been flawless execution. here reputation among partners, they're ranked top of the list which is why you've seen this. >> it's important. it's not just the operation things they have to get right. it's the protocol. >> exactly. >> look, they're supposed to protect companies from cyberattacks, which they've been doing. thank goodness it wasn't a real attack. at the bare minimum they should be able to put out these rollouts. >> can you imagine where a smartphone user gets an automatic update pushed to them and it hits every smartphone that people have? i'm not saying apple.

i'm saying hypothetically, if you push something out to everybody that uses it, one mistake and everybody is affected. >> this happened a decade or so with apple. they pushed out an iphone update and it bricked a lot of phones. that was a huge failure. people got fired over it. >> the stock point never got over it. >> it's only a $3.9 trillion company. >> steve kovach, peter lavigne, chris pearson, appreciate the insights. we'll have you back again soon. >> the firefighters, the police, they want to come in and fix it. let's get a power check on the negative side today. travellers down 7%. catastrophe losses rising. intuitive surgical rising 8%. those are stocks on the move da l "perunch" will be right back.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title.

welcome back to "power lunch." stocks are lower across the board. the s&p and nasdaq tracking for a third down day in a row. the dow is hanging on to a weekly gain. what should investors do now? rebecca patterson joining us now. rebecca, welcome. great to see you. >> you too. >> what do you -- they've got a glass of rose and say to you, rebecca, what do i do with my stocks? should i be chasing the small caps? do i worry about the election? do i stick with nvidia? what are you telling people? >> let's start with nvidia and tech. i'm neutral right now. i think there's obviously a lot of optimism priced in. it's very crowded trade. at the same time there's some very important structural benefits and comparative advantages of these companies, particularly the profitability, the free cash flow that allows them to constantly reinvest in

their own innovation. i wouldn't be running away from it. maybe you're looking at it as an opportunity to add if you're not in there yet. the small cap rotation, it was a violent move we saw earlier this week, 11% in basically four days. i've been skeptical about small caps for the last few years largely on the back of my own view that the fed would keep rates higher for longer. part of what saw this rally happen was better inflation that allowed the market to price into the september ease and further easing ahead. what do you do from here? it depends on two things. the fed may feel inclined to cut. september, we'll see if we get the data for that. the question i have is next year. the market is discounting about 115 basis points of easing next year. small caps are discounting that as well. do you get that much easing? the companies need lower rates.

they have higher debt. the second issue is growth. growth has held up relatively strong in recent months, moderating a little bit. even today the new york fed updated its q3 gdp to 2.7%. that's great. there's other indicators saying we need to be cautious. jobless claims are ticking higher. the service sector, the latest business sentiment survey had employment and new records contracting. there's reason to be cautious on that growth outlook. to me without having the all clear on those two things, i would be nervous or chasing small caps. doesn't mean there aren't selective opportunities, but i wouldn't be adding the small cap index to my portfolio. >> one of the interesting topics of conversation or debates that i've had over multiple cocktail

conversations or conversations with investor groups is the idea of how big a pullback could be. one of the topics that was brought up was how much leverage there is in the system and that it seems like in the tighter rate environment we're in, the amount of leverage we have in the system, chasing assets like stocks, is not nearly as bad as it has been in other periods that have seen bigger market declines. i wonder if you can take us through whether or not you feel as though we could have a massive market decline if there isn't as much relative leverage as back in the dot com era. >> it's a great question. i love how you're both pulling in the cocktail hour in your conversation. >> it's 5:00 somewhere. >> with leverage it's important.

in '08 where we had the selloff you have leverage among consumers and businesses. today the leverage is in the government when we think about debt to gdp. that's where the excesses are. that plays out differently in the markets. if i'm looking for where is there some risk, one thing i'm focussed on is the retail investor. you talked about this on air quite a lot which i'm thrilled you are because it's so important. we're back now to levels where the retail investors roll in the broader market and it's the biggest it's been since pre-gfc, pre-dot com bubble. they have now low or no fees. they have trading platforms that feel like video games and they have more instruments they can use. to your point, dom, triple leverage etfs or zero day options. to a degree there's leverage in

that part of the market right now. i think that is part of the reason we're seeing the volatility we're seeing on an intraday basis and single names. the reaction to former president trump's taiwan comment, that's a great example. he makes comments like that all the time. we know that. doesn't mean they'll turn into policy. the market reaction was so outsized. maybe some of that was positioning ahead of the comment. it feels like it could be partially driven by the retail investor who is saying i've got a zero day option. i'm going to make a quick trade and see if i can make money off this. that's part of the market that's become much more meaningful that we have to watch carefully. >> as a final comment, does that create opportunity? >> certainly. if you're a medium or longer term investor like many of us are, if you get pullbacks in stocks or sectors you like, you can get an opportunity to buy

them on sale so to speak. the retail investor might give you opportunities. at the same time they might be pushing the stock against your fundamental view and you have to decide what am i doing with this? am i sticking to my views? is there something bigger i'm missing? the volatility is something everybody has to deal with. it can create opportunities. >> rebecca patterson, thank you very much. netflix is remaining the streaming king, beating on earnings, growing subscribers, but lower by around 1%. we'll lay out what that netflix story is coming up next after the break.

welcome back to "power lunch." you can see stocks are broadly lower, but we're bouncing off the lows of the session. the dow down about 382 points, 40,282 the last trade. s&p up 5,505. the nasdaq off at 17,725.

that's a 146 point drop. let's get a check on netflix, down about 1%. it often moves a lot after earnings. despite significant news on its user base, it's muted. let's bring in julia boorstin for more details on what that report told us. it was very bullish in many people's minds. julie? >> reporter: netflix's revenue earnings and subscribers beating expectations. the company added 8 million new subscribers versus 4.8 million it was expected the add. the stock initially dropped on the warning that its third quarter revenue would fall short, despite the additional subscribers. underlying this warning is the idea that revenue would lag. the company said that advertising will not be a primary driver of revenue growth this year or next year. >> we're on track to achieve our

critical scale goals for all our ads in 2025. clearly we expect further growth beyond that. that represents a great threshold to get to and build more scale and more attractiveness from there. that allows us to shift our energy now on more effectively monetizing that rapidly growing inventory. >> reporter: netflix is bullish on ad support pushing subscribers there by phasing out its ad-free plan. after phasing that out in canada it increased its member base by 34%. the rating on the stock, we expect continue robust growth saying, we expect netflix will phase out the basic tier in other markets further driving subscriber growth of the ad-supported streaming tier. the company's future is all

about its ad potential. >> julia, what can you tell us about the netflix story as you've seen it play out with this earnings report versus what the competitive landscape is for everybody else who's in streaming right now? >> reporter: what's so interesting about this shareholder letter, dom, is they talk about youtube being the competition. when it comes to streaming video there's netflix and youtube and they're playing at massive scale. youtube is different. ad supported. has a very small subscription business. it's about the ad-supporting business and not having that subscriber gate that might limit the number of people who participate. they said they're not interested in bundling with some of the other streamers because they see what netflix offers as being broad enough they don't need to bundle. trying to set themselves apart from the pack. we'll see what the media giants report when we get their earnings over the next couple weeks.

they come later. >> up 33% now this year. over to kate rodgers for a news update. >> reporter: former president donald trump is expected to speak to ukrainian president zelenskyy today. it comes as questions grow about whether trump would support military aid to kyiv if he wins the presidential race. he vows he would have the war settled. hundreds of firefighters took place for the retired fire chief killed saturday at former president donald trump's campaign rally. corey comperatore died shielding his wife and daughter when a gunman attempted to assassinate trump. two others were injured in the gunfire. both are in stable condition. tiger woods missed the cut at the british open. he shot a 77 today at rule troon in scotland. it's the third early exit from

woods who vowed to return next year. >> the open championship has claimed a lot of high profile names out of the cut. on "power lunch," republicans rallying behind trump. the former president hitting the ground running as he officially begins his campaign as the nominee. biden is on the sidelines with the talks of replacing him growing again. we have the latest on that sry mi uafr is.o

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as president biden isolates with covid-19 in his delaware home, the pressure on him to drop out of the presidential race is growing. megan casilla has been following the story. what can you tell us? >> reporter: it's been a big day for the biden team and the pressure campaign to get him to step aside. 32 congressional democrats are calling on him to bow out. we have new reporting that vice president kamala harris will be addressing major democratic

donors this afternoon on a call that was just scheduled. the topic i'm told will be, quote, the work that needs to be done to protect democracy. one attendee on the call will be reed kauffman, the donor. this comes as democrats and donors begin to make plans for biden's exit as he and his campaign stay publicly he's staying in the race and will be hitting the campaign trail next week. nbc news is reporting that members of the president's family are making plans as what an exit could look like and allies of kamala harris are making plans for what a campaign for her could look like. donors have been discussing getting back involved in a race they've been sitting out in order to support any new candidate. dom harris is set to here at a fundraiser in massachusetts

alongside governor maura healey, an official who has been suggesting she would like to see biden bow out. dom? >> this is maybe exposing f fissures within the party because we have two prominent voices including alexandria ocasio-cortez and bernie sanders who are saying they're concerned about president biden bowing out of the race. what are you hearing if there's a unified front building with regard to that particular view? >> reporter: there's not a unified front within the democratic party. that's one of the biggest issues. hakim jeffries was out there saying this morning biden is our nominee. it was a stronger push from him than we've seen so far to say we need to coalesce behind him.

it's not happening. 32 congressional democrats, that's more than 1 in 10 members of the caucus coming out now and we're expecting that number to grow. it's grown throughout the day today. what members have to decide is what they want to do to move forward. one thing that i've been watching and what's been interesting to me is to see this number of leaks from the democrats, a party that has at least in the last couple years been more locked down than republicans. when there's more leaking, that means there's less agreement among different members in the white house, in the campaign, maybe within president biden's inner circle. that's what we're watching. there's no unity here. >> megan, thank you very much. if president biden does step aside, could the 2024 race still be competitive. let's ask kim wallace, head of washington policy research. it's interesting you say this election can once again be competitive. you're going back to the former president's speech last night?

>> well, hi, kelly. it's clear two things as we come to the end of the third week since the presidential debate. one is that former president trump was very effective in solidifying support within the republican party. equally clear was that the process and his speech last night made clear he and his camp don't feel they need to broaden their base to win this year. my guess is that can only be true or relevant if you consider that president biden stays in the race. that's predicated on all the available data. in the last two weeks public opinion surveys that were taken in the first half of the month, before the assassination attempt and before the convention, show significant deterioration down ticket, not just in the president's race, but down ticket in seats in states that

have been considered safe for democrats. they're now trending toward republican. >> okay. it almost seems predictable that the former president would do the unpredictable thing that no one wants him to do. if that's in keeping with what did win him the election in 2016, is it enough to win him the election this time around or does it depend on whether he's running against biden or harris? >> i think it's the latter. it depends on whether he's running against someone who can reignite enthusiasm among the 2020 that successfully put biden and harris into office. the publicly available data shows that's simply not happening. in fact, it's getting further and further away from president biden. so that leads to the -- i think the second related issue. three months out on the democratic side, three months out of the general election on the democratic side, are these

the signs of a healthy, potentially successful, momentum gaining campaign you see from democrats or not? the answer is it's not. then pressure for change is only going to increase. >> kim, it's dom. the bases, the respective bases for president biden and former president trump, are intact and may be more energized since the assassination attempt. in the coming weeks and months, there is a sense that there's coalition building, at least on both sides. president biden basically said he's going to drill baby drill and get more oil out. that appeal toss to the base. at the same time he's the bitcoin key note speaker, where some of the costs to attend his particular fundraiser could be in the $800,000 per person range. is he courting other groups to tip the scale because he thinks that's going to be a factor come

november? >> yes, he is obviously. to win the former president, he's got to beat market share analysis. he's got to beat biden in the places that biden won in 2020. my comment relates to independents who favored biden over trump by a net 13 points, young people and women, all of whom favor biden over trump in 2020. that piece of the coalition for president biden has weakened significantly and yet former president trump's appeal to those people in those political bases doesn't seem very active. that's my point. the winning coalition in 2020 is demoralize about biden. they're not showing signs of being attracted to trump. >> kim wallace, thank you very much. a huge week for earnings

coming up. we'll ask our trader which names should be on your radar, the top of your watch list on today's three stock lunch when we're back after this. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

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welcome back to "power lunch." time for three stock lunch. we're looking ahead to three key names set to report quarterly results over the course of the next week. here with our trades is scott nations. starting off with ibm, the mega cap tech name up around 35% dating back to last year. it's set to report earnings next wednesday after the closing bell. scott, big blue, it's been an outperformer. what's your trade here? >> dom, it's a buy. it had a blue period for the last decade. they seem to have found their way. eps estimate $2.27 a share. company has done a good job surprising to the upside and a

lot of people expect that to continue. they just acquired a cloud software company and they're undervalued in the a.i. space. the company has that going for it. also forward pe is relatively inexpensive at 18.8. if there's a concern, it's that consulting revenue falls short. most are thinking that software sales will make up for it. big blue is a buy. >> what about big red, cocoa cola is next? up double digits this year. you like it? go ahead. >> yeah, this is also a buy. eps estimate 80 cents a share. they've done a really good job of maintaining organic growth. the market expects that to come in at about 8.8% versus the company's guidance of 8% to 9%. they maintained pricing power in the face of inflation. not a big surprise because coke

is a premium brand and not particularly expensive. one concern would be if consumers start trading down because of cost or because of inflation. another concern would be if that organic growth doesn't hit the street's target and it's not a cheap stock. former pe 23. with that organic growth, it's a buy. >> all right. it's a buy. two buys, red and blue. american airlines, those shares have been hit hard in 2024. the stock is down over 20% since the start of the year. the company is still trying to recover from that global i.t. outage earlier today. it is scheduled to report second quarter results next thursday before the bell. is there anything we can say about friendly skies for american? >> american airlines is a hold. this is a real hold. it's a gentleman's sell. today's outage doesn't help the company. that's a different story, a bigger story that's not american

airlines specific. ual and alaskan beat on eps and guided lower this cycle. eps estimate for american is 1 o1$.06 a share. why is it a hold and not a sell? because of a forward pe of five it's very cheap. the thing to look for in this next earning's cycle is revenue per available seat mile. if that falls more than 6%, then the company is in trouble. the hold would become a sell. price action is horrible, valuation is compounding. >> scott, thanks very much. appreciate it. let's get to shares of starbuck's popping higher. kate rodgers join us. >> reporter: starbuck's up around 5%. elliot investment management has

built a sizeable stake in the coffee giant. they have been pushing the coffee giant on ways to boost the stock point. starbucks has been challenged in recent quarters in the u.s. and china. the report said elliot has been engaging with the company. it's fluid and possible they'll reach an agreement soon. unclear as well if it's seeking board seats at the company. starbucks is on its third ceo in the last three years. howard schultz having been in that position multiple times and kevin johnson before him and the company has done a bit of board refreshing. it will be interesting to see what elliot is pushing for. as of march 31st, starbucks was not a holding elliot has. we'll bring you updates as we get them. >> love to know what they're up to. kate, thanks. more "power lunch" after this.

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

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welcome back to "power lunch." electronic arts very popular college football game was back with great anticipation. why? because now players can actually be paid for the use of their name, image, and likeness. our own steve kovach brings us the details here. steve, we can actually see the people. >> this is a really interesting story. it's not just about a video game. it's about the launch of the college football '25, used to be called ncaa, the series. it's highly anticipated after they stopped making the game over a decade ago. that was because of so many legal issues with student athletes and whether they should be paid using their name, image, and likeness. following a supreme court case just a few years ago, student athletes can get paid for their name, image, or likeness, everything from commercials to posting on social media to video games. here's the deal how this works. student athletes who opt in to the game are going to be paid 600 bucks each, plus they get a

free copy of a deluxe version of the game that's worth another $100. some of the bigger college stars also will be able to get paid more to promote the game on social media accounts. electronic arts, they're not saying how much those deals are worth. it doesn't sound like a lot of money, and maybe it isn't. but ea is paying more than 11,000 players as of today to be in the game today. it's over $6 million ea is paying out and spreading the wealth amongst so many people. it's expected to be a big cash cow for electronic arts since it's the first in the series since 2015. and just today, 2.2 million people played the game in an early access version and another 600,000 have been playing via electronic arts play trial. jpmorgan analysts this week estimate the game will do 275 million in sales, about 5 million copies, but another

$200 million in sales for digital purchases players can make within the game as they play online. all of this though is possible because student athletes can finally get paid, guys. >> what's interesting about this. i had a conversation with lpga superstar row zhang, who at stanford was one of the pioneers in terms of name, image, likeness. she signed deals with callaway and adidas when she was still in college. you wonder whether or not this was a huge paradigm shift because they can see what the monetization is actually like with regard to using these. >> and if you're a big star like electronic arts is dog, if you're one of the top tier players, arch manning or somebody like that, you have the opportunity to make serious money by promoting the game, being in commercial, being on the cover finally. that's allowed now. things like that, that's really big. and, you know, some people have been talking about the story, they're like, $600, that's nothing. you've got to keep in mind, that's 11,000 players on there. most of those players probably won't get as much play time as some others.

so, they've got to pick a number somewhere. and i'm thinking back to when i was 17, 18, 19 years old, i would have loved to get a check for 600 bucks. i would feel like a millionaire. >> that's a lot of beer you can buy at the bar. >> at 16, steve? >> no, college age, college age. >> i just tweeted out the link to the ro zhang interview because she speaks about the nil dynamic. >> the nick sabans of the world think it's ruining everything. >> i'm with nick. >> i think it's a good thing though. >> they'll take the 600 bucks. you can always hear us on our podcast. listen and floolw power lunch wherever you go, and we will be right back. dad: you wanna help ? dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot and cares even more... you can do this. ...you're unstoppable. (♪♪) wow... are you kidding me?

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welcome back. we only have two minutes left in the show, several more stories to get through. elon musk rubbing salt in microsoft's wounds today after their technical failures with

crowdstrike. saying he's uninstalling it from his systems. >> we don't know which companies are part of that process, but it's something to watch right now. we'll keep an eye on that. back-to-school spending is kicking in high gear. walmart maintaining a strong advantage, according to multiple analysts. additionally, many think target is losing serious ground. this is a big battle and back to school is a key battleground. >> a few months ago, somebody told us it was going to be a bad back-to-school season. >> i wonder if prime day in july took demand. >> et may. zblrchlt target is the latest retailer to stop accepting personal checks as a form of payment at checkouts. only 15% of adults said they wrote a few checks a month in 2023. according to a recent report by go-banking rates. do you use checks? >> when we have to pay someone for a service. >> it seems odd they have your

routing and checking number. they need to get rid of that from the bottom. the wnba may be missing out in a prime showcase moment. tonight's three point contest does not include caitlin clark. clark was left off team usa. >> i'd watch more basketball if those guys are in the court. >> that does it for us. have a great weekend, guys. >> thank you, dom. "closing bell" is next. welcome to "closing bell." i'm mike santoli. this make or break hour begins with an unsettled market, chopping lower to finish out a week of erratic. the s&p 500 on pace for a weekly loss of almost 2%. it would be its worse in about three months, though it remains 3% off its recent record highs. the equal weighted version of the s&p is