it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. welcome, everybody, to "power lunch" form she's kelly evans, i'm dominic chu. ebbs and market flows, investors still digesting yesterday's breakdowns in technology stocks. we'll discuss. he's the ahead of whatsapp. he'll join us live to tell us what we have learned. let's get a check of the markets follows the nasdaq's rough day. >> most of those mag 7 names are

higher today, with the exception of microsoft. speaking of the nasdaq, the new listing lineage, you can see it's up roughly 3% or so. we're watching shares, a big ipo today. we have airlines and autos getting hit pretty hard. you can see moving lower for the auto side of things. we'll have more later on in the show. >> honeywell dipping on weak guidance, and align, the maker of invisiline, down 5%. >> fuel yesterday's massive sell-off brent and mark, thank

you both for being here. brent, we'll start with us with regard to the c.i.o. type of view on the set up. should we be worried about investors that there's even more down side ahead. >> i think there's more down side, because i do see the economy weakening. you are see -- the ism/pmi service has been in contraction the last two, three months. and you're heading to a more week time period. as interest rates as the debt reprices, and i do think that you are likely to see an economy that continues to weaken, as well as a stock market that has trouble pushing higher in the near future. >> mark, let's bring in the chart side of things. i know on a short-term basis

things can change, but on the longer, medium-term basis, is it more important for us to see strong leadership out of the mag 7 media and telecom stocks, or is it better long term, medium term, healthier to see a broadening rally not in the top seven in. >> his, dom. look, i would argue both are very healthy. the large-cap technology represent a lot of the -- it's great for the indices to see the stocks continuing to show, and technical strength. however, with the recent drop in interest rates, we have seen a real broadening out that's helped small caps, mid caps, certainly helps to add a lot of confidence to this really in a time when many are concerned for a lot of the right reasons. we haven't really seen any evidence of technical deterioration to suggest we'll see a larger pull back.

it's been healthy to see that pull back in technology. meanwhile, financials, industrials, reits, have started to climb back. i think that's a good sign. >> elaborate for me on the moment for those who are concerned we're seeing a defensive tone to the market today. >> well, we did see it in the last week, but technically we did not see any technical undercut of the trendlines that have been in place. i refer to this as a great rotation. this is the summer of small cap. we've seen an amazing area of small caps, and i think that bodes well for the next four to six weeks to see continued gains at a time when many people are starting to get more cautious rent levels are in great shape, good participation, but the minor pullback in technology, you know, we didn't do any

damage, but it pulled back exactly where we needed to. we are entering a time where it will be choppier, the time between september and november historically has been difficult for the bulls. some of that was due to 2008, but it should be a choppier period in the months to come ahead, but i'm still bullish, i don't think we've seen anything that would deter us, especially on the small-cap side. >> brent, let's talk about the election. >> he's so excited. >> i know. we've heard so many commentary about whether we should put the election aside or focusing more on it, because it will have fundamental impacts on certain industry groups. is the election something that's going to be a focal point for you as we approach this fall, given the seasonal shock that

could happen. >> think as longer-term investors, you don't care about it all that much. the u.s. economy is rather large, companies and ceos think beyond four years. so if i look at the most historic thing that when a president takes office is where you are at in the business cycle. i hope we can all agree upon we're later in a business cycle. when someone takes office lace in a business cycle, they tend to preside over a recession so, it's certainly important, but not the most important thing. i think it has more impacts on specific industries. die spite my outlook, we do agree with mark on the summer of small caps. we ironically like them, because one way or another, rates are

going lower. if we have a soft landing, it's likely because the fed lowers rates. i expect the market would broaden back out. >> can i just follow up, brent? >> sure. >> the downdraft we have seen in the last couple weeks now, how much of that do you attribute to some of the fundamental and perhaps interest rate type of narratives floating in the marketplace now economically versus what some traders may view as a prediction or some kind of an impact because of future expectations for the election? is it more tilted one way or another. >> i think we all think about the impact, but the economy more. to me, that's the most important

thing out there. certainly there will be some sort of impact on the election. then i think we move on past that. so, i think the most important thing is you have seen the economy narrow just a bit notwithstanding the gdp report. you're seeing the labor market weaken. can they arrest that, or does the labor market portend something more recessionary on the outlook, which i think we're headed toward that. >> mark, last word to you, what is the most attractive part of the market right now and what is the part you would stay away from. >> i still love technology and industrials. i think energy makes sense, the current administration is likely to continue to pump output to get inflation down and i think a new administration would ramp up

energy, and that could be negative for energy. that's a scenario i probably would avoid. treasury yieldssh moving lower, as new data shows gdp better than expected. rick santelli, we are debating this last hour. i i'm. >> what's interesting is the reversal of almost every. and that's reversusing, of course. we had a you lower high yesterday, but still relatively firm jim, what's changed? why did yesterday look so explosive? the vix has been hibernating, and all of a sudden it's like

yesterday didn't happen. what are you thinking? >> there's a lot of things going on with dispersion. the rotation we have seen away from tech has been driven by -- there's a ton of supply on the index level, the s&p 500 specifically, that's pinging relatively to the rest of the market index. that means certain things means something mass to go in the opposite direction has led to a massive swede in the russell. the problem is that it's not an equal reaction on both sides. everybody has piled into the ai names, and now when you get a painful rho tase, it can really. it's vulnerable, but out in september, out in november, there's a lot of vol supply.

eventually the index will pin as well the ai movement, in our opinion, is not over. that rotation could be painful for some time. >> everything in life these days is like a rorschach. it doesn't present a much stronger case today than a month ago or a month before that. your thoughts? >> it's so much about money supply, right? the fed says they don't target the markets, but they are money supply. the wealth effect is real. what happens when the market gow down, right? the market doesn't lead the economy, it leads in that it's money supply and drives a lot of output. >> everybody was celebrating today. the pricing index came in below expectations. on the core, it was higher than expectations, and both indicators were lower in

december. your final thoughts. >> i think the stagflation world is here. >> i'm with you. >> it's been a again and again. the structural core numbers come in hotter, while sicklically we're slowing. >> and the slowing glide path is like from new york to california, it seems. afc a pleasure to talk with you. kelly, back to you. great stuff, gentlemen. thank you so much. still to come, health care, one of the few groups in the green today. convene up 30% on a new experiment at obesity drug. tenth we'll dive deeper into it all next. plus, crypto moving. we'll take you to e nfenthcoerce live, when "power lunch" returns.

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we're about a month away that they're becoming prices of -- anjelica peoples has more on that story. what are we looking for? >> doom, remember, there are, you'll still probably hear a lot about them. they'll be announced by september 1st, or two months out from the election. people in d.c. i'm talking to fully expect the biden administration and harris campaign to make a big deal out of this asan antonio mment ther are nuances there. at least for these official ten drew. here's what astrazeneca's ceo

had to say earlier today. >> almost concluded actually, as you could expect. in the end, this outcome for us is not extremely relevant. so the impact of the price vie vision will be short-lived. >> there are some drugs we are watching more kleely, one is elequis, by far the biggest drug on this list. we'll listen for that tomorrow. thank you very much. one of the groups holding strong higher again today. our next guest says the pullback on the maleficent 7, that's genius.

we were trying to think about the difference. >> it was just the first word that came to mind, kelly, honestly. they're probably interchangeable. i thought of it first. >> i tease, but in all reality, a lot of investors are wonder if they need to get these out of their portfolio? >> yeah, exactly. i think that's what we're seeing. for the first six months of the year, the market orientation felt like it was the same pretty much every day. we got to july 1st, with a massive rotational effect. obviously take some of the momentum out of tech, so there's been a benefit here, for sure, kind of across the board, whether it's managed care providers, even pharma has traded better, and biotech as well so, you know, finally

seeing some willingness by the street to come off the technology sector and other verticals into health care. >> jared, there's a reason why they're going to health care, and a certain handful of stocks specifically, it's all tied to obesity, and diabetes drug, like the ai of health care. is there a reason, a catalyst for more inflows into funds. dom. >> for sure, the glp-1s have been unbelievable stocks for the last year or two. obviously lilly and novo have been monsters. some of that love is spreading through to other names in pharma, other names in biotech as you alluded to a little while ago, i think it's going to wind

up being a positive. we're finally going to draw a line on the sand with respect to some of the pricing med information i think they had certainly, and partially as this list comes out. >> jared, we have to leave it there, unfortunately, for some breaking news here. it's certainly a big topic for discussion. we'll see you soon. >> thanks. we have breaking news on openai and chatgpt. steve kovach has the details. >> openai is getting into the search business they just announced here in a blog post minutes ago. they're testing a prototype version of a search product. google shares are reacting here, down better than 2% now they're having user sign up for a

waitlist, if you've used the app from perplexity, dom, you're probably aware of how it works. then it also pulls in realtime results, and the sources from results as well. openai says they are working with publishers and other web sites to make sure they have proper access to all of this information, properly credited, so forth. it sounds like early day, but the fact that openai is getting involved in the search business, you can see what it's doing to google. by the way, its biggest investor, microsoft, they announced a similar feature i'm talking about for the binge search engine just yesterday. this is a very hot item for search. by the way, the alphabet earnings a couple days ago, they were talking about their ai

search product, and how that's driving engagement, but still very few details whether it will be a big money maker for google. we clearly see what the market thinking. >> steve, this is also something people worried about a while ago and now it's finally here. i think it goes to the broader anxiety whether ai is a friend or foe. they have the resources, they can bulk it out, whatever they need to, but between the spend on the build-out that alphabet spooked people about the other night, it makes for a sort of unhappy considerations this week. >> yeah, look, we ahead this over a year ago, too, kelly. it was a chat bot. remember at the time this was early last week, microsoft had a bunch of great things to say and predictions. this will help us gain market share against google. this is a big boost for binge. that northwesterly materialized. we haven't seen it eat to the

market share of google. but the fact that the leader in artificial intelligence is out here announcing is enough to rattle. >> this is also not just about the -- that these general it's about -- big tech seems to be the best poised for that distribution what exactly do we think we need to see? >> we're already seeing that with openai. they have the deal with apple to put chatgpt on about every modern iphone lasting with last year's and presumably into this year's. they would neat the kind of

deals we already seeing google making, and then also on ios and other computers and pcs, into the -- you know google has most of the deals locked up. they may enormous a little of moisture -- money to folks to be the default search engine. openai doesn't necessarily have that kind of cash to pay for it, but this is just a test i'll go back to perplexity, it's a really good product that ran into some issues like sourcing, and it's just a website. it's relatively successful we'll see if there's interest, and you can sign up and try it, but it's

a little too early to tell. they need a distribution deal in order to even think about getting into google search market. we have to talk about the content and they're saying they're going to credits it -- >> can we use it now? >> no, you can sign up for a waitlist. so, a we head to break, a quick check, like exxon mobil, also all leading the xle higher today, while renewables to a certain degree we'll drilling down further when "power lunch" returns avenue this break.

. >> announcer: stocks are higher today. xle is up a little bit today. pippa is tracking the overall trend. is energy going to be one of those places that sees a bit

more volatility? >> perhaps. people haven't been all that interest, but the real outperformer is valero. those profits weren't down year over year. they saw freight weak any earlier in the year, but they think that q3 will be stronger, and also just a side note they had their results dragged down. but they said, guys, these are just normalizing after two years of exceptional results. they're saying this is just normal activity, a readjustment back to the normal level. moving over to nat gas, it's about to hit a one handle. >> wow. >> it just keeping coming down. the middle of the country hag

relatively cooler than june. we also had an injection into storage today that was higher than expected, so there's an overall bear sentiment. finally, silver. today it's down about 4.5. investors are taking profit fuel by gold, another record for gold last week. so it's one to watch. pippa, thank you. we appreciate it. let's get to contessa brewer for the news update. the u.s., uk and south korea issued a warning saying north korean hackers are trying to steal military secrets to bowlser its military program. they're trying to breach computer systems at defense and

engineering firms. president biden signed a bill into law that strengthened oversight the federal prisons. it establishing an independent o ombudsman to receive and field complaints. and boeing's tarliner will remained docked into august. nasa officials said today they can't set a return date, because the mission remains on hold while boeing and the agency studies problems that arose during the flight. one possible solution is to use spacex's dragon capsule to bring those astronauts home. meta is set to release data for whatsapp and its users for the first time ever.

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welcome back to "power lunch." for the first time ever, meta is releasing data about whatsapp using in the u.s. it'sbecoming one of the leading platforms for cross-device messaging. just ahead of the second quarter earnings which are scheduled to be released next wednesday join ugh is will cath cart. i'm extremely excited to hear about it welcome to bo of you. julia? >> thanks so much, kelly. thanks so much will, for the rare interview, you almost never give interviews here in the u.s. this is the first time we've gotten a number, but still a small person of the overall number of users it was about 2

billion users back in early 2022. >> thank you so much for having me. we're excited because, you know, one of the places it's his toby historically not been as popular, is the u.s., and the number is changing why, if you have friends on i phones and androids, you should be able to talk to each other. we're excited to share we're having successes well still have a long way to go, but we're growing at a double percentage year over year. what does that mean for your apparently company's bottom

line? >> we're hopeful to get there we're in particular see strength like california, texas, new york, florida with younger audiences, a majority of our users are on iphone that want to talk to people on androids see. >> dom, you have a question here? >> my family lives in an area where there's very limited cell phone coverage, but i have fast wi-fi. i get text messages from the green dot friends, and i don't see them until the next morning when i'm driving into work, nor can i respond. how much does that transitionary bridging type of dre going to drive usership before?

it's a huge part of our suction historically. then, when you get it and want to talk to your friends, that's brings more people onto the network. we're hoping to create that buzz, so someone who hasn't used that, if they hear from a friend like you, they know a bit why. one of differentiators, is the function of ai. meta announced the new chat bop

will be rolling out on whatsapp. >> it's incredibly exciting. everyone is hearing about ai, but one of things we hear is they don't know exactly where to go or how to use it. by having a chat thread where you can just talk to llama, ask it questions, do cool things like generate images. you can make images with yourself in them. we think that's helpful. and it's really helpful, because a lot of the cool ways people want to interact with ai is talking to other people. you've allowed people to -- businesses can use generative ai chatbots to interact on wh

whatsapp. how will that help with mark zuckerberg's efforts to monetize it? >> a lot of countries where we're popular, people naturally talk to businesses on what's happenr app they're talking to them, and we're starting to do tests where they can make that more natural, and answer a customer immediately. >> and you're charging for that? >> we charge for two things right now. one is for large businesses who want to use, and a small business, they can download it, it's free. if a major airline wants to answer questions on whatsapp, they won't answer it on one phone. we have an api where they can integrate into their customer service system, and we charge for that. additionally a lot of small businesses use it for a short

time, and we upsell running ads on facebook and instagram. we're driving a very healthy and quickly growing business. will, we appreciate you taking the time to talk about the milestone and what's next. we hope you'll come back. >> thank you for taking the time to talk about it. we're really excited. we have more "power lunch." keep it right here, after this break.

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back to "power lunch," request a quick power check on alphabet and microsoft shares. they're still lower as openai is announcing -- both stocks are down. keep it right here. we'll be back with "power

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maybe be the start of a volatile cycle. in this period of heightened tension and uncertainty, how do you emotionproof your portfolio. >> you know, a lot of people are worried about their investments. more than half of investors are feeling anxious about what the upcoming election could mean for their port follow for. 40% of them expect to move or pull some of their investments based on who is elected. to keep the jitters in check, a financial therapist i spot to, first, picture your goals. literally post a photo on your front door or in your office, where you want to retire, that's your vision. then separate fact from fiction. write down what worries you about your finances and investments. market it with a f or f, for true or false. deal with what's true or

necessary, put aside everything else. most important focus on what you can control. review and evaluate your investments. also, spread out the stressors. write down what stresses you. use that exercise as an outlet for your stress and anxiety. back to you. what do you think? >> i think doug is the perfect person to bounce this off of. welcome. you know, build on that for us, doug. >> i can't disagree with anything said there. you can have my job. it makes my life easier here. ignore everything else but what you can control. we preach diversification all day, every day. and you're seeing this into the broader market, actually.

this is why we diversification, this is why we can absorb the volatility we're seeing. >> okay. now we're getting into election season somewhat. the people will hear a lord or shouldn't affect your investment choices. >> what people tell me, not just cash. park it in cash, don't know what's going to happen. a really bad idea, i think. >> probably a very bad idea. right? >> wow. >> imagine behaving one way or the other over the last few election cycles. look how the market has done specifically these last eight years. 2022 being the blemish on the record, but you've had a ripping market for the most part here. >> under both administrations. >> under both administrations. >> you think would be very different. >> thinking, hey, make a decision one versus the other, sorely ly mistaken.

be consistent and disciplined investors throughout. pay particular attention ot what your investment time horizon, and classic things hold true just tested more than before. as a financial advisers it's not just about investments picking stocks or mutual funds oret etf. it's about crafting plans for the life they want to live now and in the future. that's huge. what does it mean, then, to focus on the investments, and how much, then, do you focus on other aspects of someone's life? including employment, savings what they spend on what they save for. how of those strategies permeating more into a plan as opposed to just buying s&p 500 index funds. >> absolutely. >> a lot of bias what i tell you here. i'm a financial planner, put forward financial plans for our clients. this show us the investment

planning speece just one part of the overall puzzle. you've mentioned a lot, dom. estate planning, now get to financial independence, cash management, i could go on and on. sending your kids to college, another great example of this. visiting all areas, make smart decisions when it comes to your money that aren't just based in how the market is doing on any given day. if you're literally managing your financial life because of how the market is doing, week to week or day to day, you're going to drive yourself insane. you're going to need a therapist end of that one there. >> totally. >> being holistic, working with financial advisers, creating plans that cover these areas is probably wait to go about it. >> sharon, your comment when people are a little concerned, don't know what do they want to move to cash. a comment made on the show a couple weeks ago how millennials are conservative and sometimes have to be taught into things like stocks. i wonder what that tells us about people's propensity. well as the market's done and we

talk about it, a sense, almost too good to be true and i don't want to be in it at the wrong time. >> absolutely. people work hard for their money and don't want to see it go down. heard it time again, i'm invested but don't want it to go down. market's volatile. you have to expect some of that and also now with high-yield savings offering 4%, 5%. >> just stay there. >> just stay there. >> you get paid for risk. that remains true. if you want higher returns you have to accept higher volatility. just don't look. keep the -- yeah, eyes covered. >> talk to somebody. important to talk to doug, a financial planner, advisor, looking holistically at all aspects of your finance. >> at the very least, it's therapy. >> we're not going to therapy. going to financial planning. doug and sharon thank you both. appreciate it today. be sure to sign up for sharon money 101 eight-week newsletter scanning the qr code on your screen or going to our

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crypto investors are swarming nashville as bitcoin 2024 kicks off. it's not just bitcoin bulls. former president trump's saturday sweep attracting a ton of attention and supporters as well. down there already, talking more about the buzz, and you've heard the rumors. bitcoin -- now that that's the rumor he can only fall short of expectations, unless he actually announces it. >> talking to a lot of people on

the ground. some advising the trump camp what he might say on saturday. we do know, kelly, 20,000 bitcoin bulls are descending on nashville for this flagship event of 2024. this year the conversations overwhelmingly about politics. tangible progress on capitol hill towards crypto regulation including bills on market structure and stable coin. washington is also here in force. republican senators from tennessee, bill hagerty, and cynthia lummis and former president trump, company note be that's happening saturday. expected to lay out his vision how he would treat crypto if he wins. trump pivoted hard towards the sector in recent months. seems to be paying off. he's raised millions of dollars in donations from the crypto coalition. some of those contributions directly in bitcoin. and trump is hoping to rake in more thanks to a fund-raising

event that he's holding in nashville where the top ticket is going for more than $800,000. conference organizers extended an invitation to vice president kamala harris she ultimately declined but her campaign team is asking mark cuban a lot of questions about crypto. which speaks to the fact that bitcoin is gone from being a sort of niche in apolitical interests for a small group of people on the internet. something that is a national debate in the u.s. >> although no harris. i think if anything probably most bullish in the bitcoin community to see bipartisan support here. >> right. sorry to see that. i mean, on capitol hill you've got democrats coming across the aisle to support republican legislation with bit 21. interesting shift. i have to say, kelly a small but very vocal group of voters. many single issue voters living in battleground states with more money than they used to during

this bull market. a lot of them overlap with the silicon valley elet. >> elite. >> thank you. check back in. how do we watch on saturday? >> curious what commentary comes out of this. especially in the trump -- >> thanks for being here. >> see you tomorrow. thanks for watching "power lunch." >> "closing bell" starts right now. and welcome to "closing bell." i'm mike santoli in for scott wapner. this make or break hour begins whip the hardest hit month of the market and a spin of rotation trade into small caps and financials. a short morning flushed lower then deep in the correction of big tech seemed to exhaust selling for the moment. action remains unsettled with the s&p 500 back to a flat line after 1% gain. and 60 minutes in regulation, look at the s&p 500. up to a six-week low touched just after the close this