welcome to "power lunch," everybody. alongside kelly evans, i'm tyler mathisen. stocks are sliding ahead of bigger reports due out after the bell.

>> they're raising concerns about the economy that could contribute to the selloff with the dow down 600 points, the s&p 500 down 1.5%, the nasdaq down 2 1/3, and the yield falling below 4% for the first time since february. rick santelli will be here with more on that. the ceo of almos gold will join us. tony will be here to talk about apple. we'll also get the trade on amazon and intel along the way. meantime let's dive further into today's weak economic data, jobless claims soaring to 249,000 in the last week. that's the highest level since a year ago, august 2023. can you believe it's august already? i think it's hard to believe. while the ism manufacturing index fell, suggesting a contraction in activity. all of this sending bond yields sharply lower.

let's make sense of it all with dory wiley, con street's ceo. good to have you with us. this is what i sorts of heard as a subtext in what the fed was saying yesterday. number one, they're much more focused today than they have been over the past 18 months on the labor market, on the employment side of their mandate. do you agree? >> i do agree. if you look at the language that powell used, he was very cautious. he didn't look at it as weakening. he looked at it as normalized. now, the market, if you want to say the selloff today is economic uncertainty, which i'm not sure i want to say that, if the market would take that as, well, we have a weakening of the labor market, the fed didn't go there yet. i thought that was interesting. >> very interesting. today you see the jobless claims numbers were higher.

we get the jobs numbers tomorrow. that will give us further -- it adds to the pile of data, doesn't it, dory, that the fed will be using it to determine whether or not the fed cuts rates come september, and i would assume you think they're probably going to do that. >> i do. i think he gave us that clear message yesterday about cutting rates in september. i think the real question is he going to have more rate uts. so now if you look, the market, which has always been at odds with the feds for the last several years for some reason, he's downplayed future rate cuts, but yet the market did what? it bet on future rate cuts. now there's a higher probability of rate cuts by the end of the year than two, and there's an emergence from what the message was to powell. >> dory, you mentioned you weren't quite buying the weakness behind the selloff. what do you think it could be,

then? >> it could be economic. you're talking about the center of rotation. this is small numbers coming out of big tech. it's billions and billions of dollars. when you start to move price, it causes things. i think the market is not so sold on a weakened economy. the market wants its drug of choice, which is low rates, right? you see everyone moving lower. the theory is you go small caps and it's been a nice play. you have to be careful. over 41% are profitable. if you look back at big tech, something like an nvidia, this big selloff on a company that has 56% margin and over 100% return on equity, this could be a big buying point. >> you think in terms of drug of choice, two sectors might benefit here. that would be regional banks as well as payment companies. you list two stocks, huntington

banks and paypal. explain your argument for them. >> part of it's center, right? banks have been very cheap for a good while and wrongly they can't make money unless they have lower rates. this rate cut might be coming up and will be very good for banks, very good for their stocks, and they had a very good july. huntington is right there. has a good handle on its market, has lower real estate exposure. it had only one of two banks in its peer group that grew deposits in the quarter. you look at markets like texas and south carolina. >> and paypal? >> paypal has been kind of a stepchild as of late. it's actually cheap. it's a value stock. they've been beating numbers, and they look really good. i love the ten times eat ta offer for paypal. so i think consumers are still spending money. you get rate cuts, they're

liable to keep spending. paypal numbers look really good. and so i think it's a value play here. good place to be. >> you're the third person pounding a drum on them. i'm starting to take notice. dory, really quickly on big tech then, you said there's capital shifting around here. do people go out of their way to avoid exposure to these names? >> i think you have to be careful who you're into. they both still look very expensive to me. you're going, you mean some of the big tech is cheap? yeah, i still think nvidia looks pretty good, microsoft, i'm watching pretty close. but i'm going to wait on buying into the dip of apple and amazon. i think i need them to come down a little more. >> we'll see if that's prophetic based on what's happened or in the weaks to come. dory, good to have you on. thanks for your time.

let's get the trades on some of the big tech earnings we were discussing. david, i'm eager to hear your take. the stock is up 4% in a difficult take. so what's your trade on it now. >> you know, we think it's a hold. meta is a super profitable company. we're impressed with how mark zuckerberg has led the metaverse thing. they generated $60 billion in free cash flow in the last few years, but the valuation is rich. we think most of the good news is priced in, so we're not seeing a lot of upside in potential in meta at this point. >> let's move on to another tech stock. amazon is set to report its earnings after the bell today. there's so much more to show revenue growth. shares slowed down but up more than 20% so far. your trade, sir, on amazon.

>> tyler, we're a selloff on this one. it's a lot less profitable than we think. i mentioned facebook has generated 60%. amazon has burned or lost $125 billion in free cash flow over the last five years. most people think it's a really profitable business. it's not. those margins are misleading because the capital side of the business is really just hemorrhaging cash at this point. that's why we've seen debt up around $180 billion and shares outstanding growing. it's not as strong a business. the valuation is still expensive as well. that's a sell for us. >> before you dive into intel, would you stay away from apple, which reports tonight? >> apple has a better business model. they're closer. >> that's a bright spot.

i don't want to overlight it. amazon reportedly has these plans to cut finance. the shares down 4% and only 40% this year, david. >> yeah. it's been a tough time for intel. the business model's really fallen out of bed. an invested return when they used to be in the high teens. free cash flow has been negative. unfortunately a lot of the turnaround is already priced in, so the market's giving intel credit for getting back into business or back to form, but, kelly, you know, we think that that's probably good enough for now. i don't really see a lot of upside in the stock given that so much of the turnaround is priced in. >> this was one of the great american companies, and it has been an also-ran now through several cycles here. is it a survivor? >> it's a good question, tyler. you would think with the

c.h.i.p.s. act with all of the caps flowing in for the domestic production, that would be a huge windfall for intel. that's why i think the turnaround is priced in. so i think it's going to stick around, but it's probably going to be sort of, you know, making the chips that aren't so exciting, not nvidia-type chips but chips that are running the toasters and chips and cars and maybe not the super computers. still useful, but not a sexy stock. >> why is the market down 658 po points right now? what changed from yesterday? >> you know, tyler, my crystal ball is in the shop and my data selections are a little off. this has been a wild market for a couple of years. you understand we focus on fundamentals. we're looking at cash flows and valuations. we've seen so many stocks traded an entirely different levels both on the expensive and on the

cheap side. there are a lot of great stocks we still find, a lot that are head scratchers at how expensive they are. they have futurecasts baked into them. in a market where roaring kitty has a real 5ud jens, i'm not going to try to understand what's happening day to day when people are paying attention to think like that. >> thank you so much for your time. still to come, gold trading around an all-time high with the price sitting just under $2,500, $2,483. t investors waiting on a fed rate cut. we'll see how it sitting when we return. , 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

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down 1 3/4 percent and the granddaddy of them all, the nasdaq down 2.70 and change. it's having a big impact on bond yields sending it back below 4% for the first time since february. rick sack telly in chicago where he's following the action for us. >> you know, tyler, i know that many are focusing on the 10-year, but let's actually start out with the two-year, and you'll see why in a minute. as you look at the intraday two-year, we kind of fall off of niagara falls. those are data points. whether it was rising claims, weak pmis, rising pay component, it all seemed to work against the market today, pushing yields lower. but here's the fascinating thing. we closed the two-year after the yields dropped yesterday. down at 4.26%. we closed last year at 4.25%.

so basically yesterday's close was unchanged. we sliced up and down through it. so right now as we sit at 417 and change, we're now down seven basis points on the year on a 2-year as you see on that chart. let's switch gears a minute to the 10-year. you can see also the same notions at 8:30 and 10:00 drops and now, yes, we have now traded under 4%. as tyler said for the first time since february. what i find fascinating, we settled last year. we're down seven on the 2s, up nine on 10s. even though that's not a huge difference, 16 basis points, it really does underscore what i've been saying is the most popular trade of the year. i've been a bit long thinking long-term rates would be hard. but the bess way to play that is on a steepening or yield curve

trade, which has been really popular. as you look at that two-year chart, you can see whether it's july of 2022 or recently over several touches, this is basically the least inverted area it's been. the reason it's so important is because long dated treasury yields are the sell side of that spread, and many traders globally will continue to say the weak data is definitely a big deal, pushing yields down, along with the fed that ice going to be easy. in the grand scheme of things, don't under estimate dead, deficit, supply, and auction because they'll rear their head. we might see a more active participation of stubborn rates as time moves on closer to the election. finally, the bank of japan is going to meet. look it. we just recently right now have breached 150 in the dollar/yen. to think that 5 1/2, 6 weeks ago, this trade was just shy of 162. it now has a 149 handle.

and also it was very recently with that spike it under score 38 years of all time in the currency. that's the yen. don't underestimate how much horsepower this trade can get, especially with all of these trades in asia unwind. based on what they do tomorrow, they could unwind very quickly. back to you. >> let me ask you a quick follow-up question. in laymen's terms, is it deinverting because the 2-year is falling faster than the 10-year or what? >> well, that would normally be true for most of the move, tyler, but if you look for a week-to-date, each maturity is down about the same. they're down 21 basis points a week on the 2s. 21 basis points a week on the 10s. the two-point spread isn't as different as it was last friday. the driving force is that the

10-year with a slowing economy should be dropping even faster than it is, and it's stubbornly not doing that, and that's the dynamic traders are locking into. >> rick santelli, thank you very much for the explanation. now to the gold sparking a higher return. gold's on pace for its fifth straight positive a day. it's giving al mohs a boost. here first on cnbc is john clusky, ceo offal mohs that thank you very much. >> what would you say is driving it? >> it's driving out of asia. i think now that you've got heightened tensions in the middle east, i think all of that

is playing a role. i think also with the news of the late stage election cycle, there's more about that, that's particularly giving americans pause and giving some consideration to gold and gold equities. >> why are central banks buying gold? >> i think it was driven -- i think the catalyst was really the russian invasion of the ukraine and the result ing move by the west to effectively seize russian assets. and when that was sort of picked up in the world, there was this sense that, you know, the west would effectively use economic coercion to essentially dictate to other countries how they're supposed to behave, and they didn't like that, and so they

started selling dollars and buying gold. i think that was a big part of it. >> john, i'm curious as we talk about the price of gold breaking. a lot of o people are surprised. i myself was when i remember kind of bouncing along in the 2010s and not doing much. it's really outperformed the s&p suns the turn of the century. what do you think would have to happen to continue to outdrive that performance, especially if the u.s. gets its arms around the deficit and dynamics. is it slowing growths, interest rates? what's the most important cat catalysts? >> it's interesting you point this out that you look at gold over the long term. you'll probably agree that most people look at commodity trading over the short term and they look at gold as a commodity, and that's the way it was certainly characterized through the latter part of the 20th century and into the 2010s and yet we saw a

lot of economic upheaval in the world in 2008 around what has happened in the aftermath of that, and lately it's been growing debt right around the world, particularly driven by very strong u.s. debt accumulation. you know, when you consider all of that, people started to think of gold in the more traditional terms, and in the more traditional sense, gold is money. it is the fundamental money. it's been money since humans, you know, figured out how to trade with each other. so, you know, i think that there is a very worrying theme at play here and that is, you know, politicians starting to talk about it, washington talking about the u.s. debt approaching $35 trillion and growing by a

trillion dollars every 100 days or so. these are astronomical numbers and these are the kinds of things that get people to look at gold. >> john, thank you very much. fascinating insights there from alamos gold. up ahead, restaurants, and shake shack up. huge profit there. shakes, fries, burgers. this comes as many in the group are struggling. we're going to talk to the ceo about the rest of the group in the restaurant space when "power lunch" returns. ♪♪

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plus, their design services team helped us get a design we love. come together for a cause. get started today at customink.com. the white house announcing a prisoner swap with russia, freeing wall street journalist evan gershkovich and others.

here's eamon javers. >> the government released high-profile americans held in captivity including wall street journalist evan dwers co-vich who had been imprisoned for more than a year. among the group traded was a wealthy young russian entrepreneur named vladislav who was incarcerated in a federal prison for his role in one of the most damaging schemes in wall street history. he's in a new cnbc documentary we're releasing today. you can watch the full documentary which is called "putin's trader" on cnbc.com/putinstraderdoc or scan the qr code. we're also going to wree lease a six-part podcast called "the

crimes of putin's trader." we're about to head back to the studio to record episode 7. >> correct me if i'm wrong here, but we've never seen the kind of multi-party -- i believe it's seven country deals like the one that has brought about this exchange of prisoners. it's like a game of chess. >> pulling this together was high-stakes negotiations behind the scenes. we noted something was amiss earlier this week when we put together our final doukss. we knew klyushin would be one of those people likely involved in the trade for evan gershkovich

and other americans. earlier this week i went to the u.s. federal prisoner database to fact chect that klyushin's information was not listed. we spoke to his lawyer who had said klyushin had been moved and the lawyer had no information on where he had gone, just that he had left the custody. >> fascinating. what fascinating coincidence that you went digging and, oops, he's gone. we call him putin's trader why? because some of the money he was making was getting funneled back to putin? >> it's a fascinating story, tyler. i don't want to give away all of the story. his partner in crime is still at large. he was part of the russian intelligence agent and hacker

who had been involved in russian government intelligence operations against the united states and the west for years. he goes into the private sector. goes to work for the ol' i garg and hits wall street databases and stealing information. all of that is done, we are told by sources in the documentary with the imprimatur of vladimir putin himself. he wants his key intelligence players to attack wall street, attack financial institutions in the west for their own profit. finance yachts, private jets and all the toys billionaires buy themselves because it destabilizes western deconomy. >> go ahead and enrich yourself. we want you to enrich yourself by disrupting the global financial system among other things. >> that's absolutely it.

if you're an investor in tesla, roku, sketchers stock, you were victim niced by this russian team who was trading ahead of you, knowing what was going to happen in the earnings releases. this affects investors in the u.s. market in a very fascinating way. >> "putin's trader," did i get that right. >> yes. >> thank you very much. i appreciate it. let's get to julia boorstin for the cnbc news update. julia? >> reporter: the senate is voting on a tax bill that would provide tax breaks for businesses. it looks like democrats have enough republican support to pass the measure which passed through the republican majority house. majority leader chuck schumer forced the vote, which is the last in the senate before it breaks for recess until september 9th. the families of hostages held by hamas marched today. they're demanding a cease-fire deal that secures their loved

ones' release. it comes amid tensions and the rise of the fallen political chief in iran as well as the killing of the military chief in july. hollywood video game performers hit the picket line at the warner brothers lot today. they accuse the studios of falf failing to protect them from ai in the industry. they offered wage increases and protections during the negotiations. still to come, apple earnings on deck, and analysts are starting to see a decrease in iphone says for now. we'll discuss that next with apple shares down 2% and the dow down 700. stay with us.

earnings on deck, and analysts

earnings on dec the chip stocks, they're getting hit particularly hard, although it does follow

yesterday's gains. apple and amazon are both reporting after the bell, helping to show investors increased spending on ai will pay off and drive sales. after they disappointed, steve kovach is digging into the key things to watch when apple reports. steve, it looks luke you're already on site, getting ready. >> yep, i'm at apple's site in cu couper chino. overall sales had been down five over the last six quarters largely on weak iphone demand in important markets like the united states and china. they expect the iphone sales to slump. that's an improvement from the 10% drop we saw in the march quarter, but what you should be watching out for is guidance from apple that the iphone is

about to return to ground again. they're expecting a big upgrade cycle driven by ai features coming later this year. the september quarter is expected to include at least a week's worth or so of the next generation of iphone sales. now, there's some implications here, too, the ai rollout in other countries, especially countries like china, it's going to be a big complement. it's unclear how apple is going to tamle that one. one more thing is capital expenditures. that's a huge issue. we learned this week apple likely didn't need to spend boat loads of cash to create its own. they train those on google chips instead. so we'll see how well that worked when the ai system finally launches on apple devices, guys. >> steve, i think you qualify

for california residency. steve, stick around this week as we cohere. our next guest agrees that apple's upcoming earnings will be all about the iphone 16 and whether they can fuel a big upgrade cycle that could last beyond to 25. for more, let's bring in tony s saginaki. good to see you. the quarter we hear about tonight and even the quarter that ends in september are kind of preludes or appetizer portions for the quarter that really matters, which will be the one in october when this new ai-enabled iphone will hit the market. am i right on that? >> good afternoon, tyler. i think that was well said. i think investors are looking forward. this has not been a good iphone cycle. whether apple beats or misses a little bit this quarter on

iphone expectations doesn't really matter. we know it was not a strong cycle. i think what's more important is just the anticipation of what will come with the next cycle. this is the first time they're reporting since they had the worldwide development conference and introduced apple intelligence, and investors will be holding their breath on every world about what kind of functionality apple will ultimately bring and potentially how big the cycle will be. i don't think we're going to learn a lot from guidance. historically the iphone only ships about seven days in september, and guidance is largely about apple destocking old iphones and restocking new iphones. historically there's been no correlation with guidance and the next quarter and how strong the cycle is. i think investors will will be listening more about qua qualite

things and when it can stick in. >> i don't think it matters. the stock has been doing well and more so in the recent quarter. until today do you call apple a growth stock or not? >> i would say apple is a quality compounder. we take apple's normalized revenue growth rate. it's around 5%. we think margins are flattened up and buy back shares so they can grow 10% per year. i think one of the good things about apple is it has this huge installed base, 2 billion devices and a billion unique customers, so it does have a consumer-like characteristic and high return on capital. i would review it as more of a

quality compounder rather than an outright growth stock. >> i guess, tony, a lot of people are saying this is probably going to be called the ai selloff, sell the mag 7. it's the pivgt into the russell 2000 small caps. if that plays ow and takes capital away from big cap tech. does it have long term play into the performance? >> kelly, that's a great question. that's the question du jour. is there too much ai hype and ultimately can we see a pullback in all things ai-related. apple is a little bit different. one of the concerns about the mag seven more broadly is just the tre men does amount of capital expenditure that's going into ai equipment and structure. they're not doing that. they're going to use third-party ai centers and apple is going to be a conduit to provide ai to its customer base, but that ai

is going to be run externally, not on apple servers or not much of it on apple servers. so the fund men thal concern, is there going go be much revenue. apple isn't surrounding that, it's is it good enough and therefore the revenue will go up the next couple of years, whereas, more broadly, i think the question surrounding large cap and midcap tech is we made these huge investments in ai, are we going to get a payback. >> exactly. so, steve, let me turn to you. there are bright spots. i guess the question is apple just sort of -- when you cut through all of it, is apple basically an iphone company and that that is what really matters here? if you look at services, the revenues are up there by double digits. you look at ipads. for a change those revenues are

higher on new mottles they brought up there are these bright spots in the portfolio of businesses, but do they matter when so much of the business is over the telephone? >> yes and no, tyler. so the services business is growing. i would call it our iphone and services business, but, again, that's all anchored in the hardware itself. that's why you hear apple talk so much about how big their does solve base is. that is then kind of stimulating, hey, this is all the opportunities we have to get people to subscribe to different services. they count for that for things in the store. it counts for disney+ or anything you might subscribe to within the apple ecosystem. largely, yes, just the iphone company. that share has come town.

yeah, it's definitely hinged on the iphone, tyler. >> steve, thank you very much. tony, always great to see you. tony saganagi. we're looking at a 70% jump in net income. we'll talk with the ceo about that. as we head to break, the dow is down 738. as you see, the lows have been picking up steam throughout the day. we've got more on the other side of this break. >> announcer: tech check is sponsored by comcast business. powering possibilities.

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absolutely. sofi has helped over 130,000 people take the leap towards home ownerships. sofi mortgage. verified pre-approval. low down payment options. and on-time close guarantee. welcome back. here's a bright spot, a really bright spot in the market. today shake shack shares are surging 16%. they reported better than expected sales, saying a robust demand for chicken, burgers and services. with raymond james seeing an upside, overall are we still

seeing consumer signs? let's talk more about the state of the restaurant business with our very own kate rogers who's joined by wingstop's ceo. >> thank you very much. high, michael. great to see you. wingstop has seen phenomenal growth in this challenging market. same-store sales up 27%. tell us what the strategy for wingstop is and the sea of values to keep customers coming back in. >> we set a record quarter in q2 that we reported yesterday. same-store sales up almost 29% and that's being driven primarily by tractnsaction grow. we believe we're a category of 1. we have a lots of opportunity ahead of us. we grew our ank nual units

offerings. and we set a new target for average unit val um of $3 million because of the amount of runway we believe we have and the strategies we're executing against. >> and talk to us about income cohorts. how are they faring at wingstop? are you seeing any trade down or pull back from consumers per their visits per oh caution per quarter? >> yeah. as you might expect, with a 28% calm, we actually saw a very different result than the rest of the industry. we saw growth across all income cohorts, particularly that lower income cohort, but the fastest growing cohort within our business is that $58200100,000 a year guests. we see them coming into the brand as we continue to bring in a record pace of new guests. what we really like and we're excited about with these new guests is they're coming back to

our brand sooner and moving up faster. for the first time in my ten years at wingstop, we're starting to see an upturn in see queenly. >> michael, if i might just jump in here. kate, indulge me. i want to be clear i understand million. does that mean 2 million annual sales? is that what that is? >> that's right, tyler. 2 million of annual sales, and we have a new target that we've set our sights on, increasing that to 3 million peres straunt. >> question number two, i saw in one of the kyrons, more than 60% of your sales are digital. does that mean most people are using their phones, placing an order, coming in and picking it up? >> that's right. order ahead. almost 70% of our sales are coming through digitally. tyler, what that's done for us

is allow us to amass a database of over 45 million users strong and we've invested in that data to enrich it. that's allowing us to lean into something we're really excited about, that's our recent launch of our own tech platform, my wingstop that will enable us to lead into hyper personalization. we think it's going to continue to drive top line sales and impact frequency over time. >> michael, it's kate. i'm curious, the consumer is flocking to wingstop. when you talk to your franchisees, what is their top concern? is this sustainable? >> their top concern right now, kate, is actually they want more growth. they want to open more wing stops. so we were excited to be able to update our total opportunity. it was 4,000. we think we can open 6,000.

that's three times more. our franchisees, they want more growth and they wantto grow wingstop. we're excited about that. >> you mentioned the updated store target, footprint. that's more than triple what you currently have with wingstop. how do you plan to drive that kind of growth at scale and make sure it is profitable for owners? is there any thought of potentially cannibalizing business? >> we think we have a ton of white space in front of us. the original wingstop that opened 30 years ago to give you an example is doing about $4 million in sales and it is growing transactions 30 years later. so continuing to grow. so we haven't found a point of maturity. dallas fort worth is our most mature market. when we went public we had 81 restaurants in dallas and fast

forward to today, it's 160. the important thing about us continuing to grow total sales per restaurant is our brand partners are making a lot of money. they can open a wingstop on average for half a million dollars and they're getting a pay back on that return in less than two years. >> tfinally, we talk a lot abou value. tell our viewers how you are assessing pricing and if the price is right for the products you have right now? will there be a $5 grab bag like you're seeing at the other fast food competitors. is it necessary? >> i think it's another one of the elements of our story that makes us unique. we don't have to get into the value wars. we've been very disciplined around pricing over the past couple of years. that's paying dividends today. we're actually measuring record levels in value and quality stores with guests. i think you're seeing guests flock to wing stock and continue to drive sales. we're pretty excited about. >> michael, we have to leave it

there. thank you for joining us. really appreciate it. >> thanks for having me. >> back over to you. >> thanks for making me hungry. >> i was, too. >> wingstops near me. >> there's a few in new jersey. we're going there after. >> more available. >> as we head to break, let's have a check on the markets. the dow is down 700 points or thereabouts. 696. nasdaq down nearly 3% as you see there and the s&p down almost 2%. "power lunch" will be back on a very busy market day. investment professionals know the importance of keeping their clients on track. sometimes they need help cutting through the noise,

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so you can enjoy the life you've created. that's the planning effect. broader markets are down sharply. 5 of the 11 s&p sectors are higher now. utilities are brighter. pippa loves hearing about that. 1.4%. they're typically seen as a

defensive. utilities up, it's a bad sign for the dow, that sort of thing, but they are more exciting these days. >> they are. we've had pretty good earnings. it's a flight to safety, let's go back to the solid -- >> and low rates as well, always a help. >> yeah, exactly. >> up about 1.4%. we had the pjm capacity. it sounds wonky, the prices rose 800% year over year. if you had competitive generation, pjm, which is the largest interconnection cue in the u.s., 25%, you now all of a sudden have so much more money coming in for your capacity. >> everybody is talking about that. >> yes. their stocks are up this week. it's important to temper expectations because it's only for one year. this is for 2025 to 2026, but it

means you have kind of for a lack of a better word a cushion for starting in in june of 2025 because every single day you are getting close to $270 per megawatt day that previously you were getting less than 30 for. >> getting x or more, 9 x. >> yeah. 833%. a lot of that is because you can only bid into the capacity market if you are base load power. that takes out solar and wind. so it's only fossil fuels and nuclear. >> there you see the stocks. 90%, 50%, 30% on that trio that you mentioned. >> exactly. they have competitive power generation. when power prices rise, they see benefits, but ultimately for consumers this is not good because they're going to be the ones footing the bill for this higher capacity price. >> leave it there. thank you, pippa stevens. >> doug, let's get a broader look at how that situates

things. rate sensitive sectors. broadly speaking, the dow is under pressure, nasdaq is under be pressure and small caps are the worst performer, ty? >> yeah, the nasdaq down 3% as you see right there. 500 points on the nasdaq. thanks for watching "power lunch." >> "closing bell" picks things up right now. >> kelly, thanks. welcome to "closing bell." i'm scott wapner live from the new york stock exchange. the make or break hour begins with the critical countdown to big-time earnings. apple and amazon are set to report their results. our experts are at the ready with all you need to know. we're going to bring them in in a moment. we will show you the scorecard with 60 minutes to go in regulation. very rough day on the stocks. raising questions about just how much growth is slowing in the u.s. economy. there's your