edou do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire welcome to "power lunch." i'm tyler mathisen. coming up, money and politics. could the department of justice really break up google? what happened to all that chips act money that was promised to companies? two years later, none has spent. what's next for chipotle. the stock is falling again today. is the company that dependent on

one person? let's start with the market reaction to the consumer price index this morning. it's somewhat of a mixed pi picture. and this is bond yields have been falling. cpi rose about 2%, but the annual increase is the lowest since early 2021. as inflation gets closer and closer and closer to the fed's target 2%, is that enough for a rate cut in september? let's bring in maxie, and a partner at the wall street alliance group. dean, let me begin with you. it would seem to me after the inflation report today, you know, the story is already written. there's going to be a rate cut in september. has the market will have priced that in? >> the market has priced in a

rate cut in september. the market is trying to distinguish whether it will be 25 or 50 points, the size of the rate cut. i think the only thing that would throw it out is a horrible inflation print, but that seems unlikely given the backdrop we're seeing. >> adel, it seems unlikely that the fed would cut by a half point. that would probably require the next jobs report to be really bad. >> most likely we'll get a 25 basis point race cut. i think the only concern we see right now is consumer spending, the earnings report showed signs of a slowdown, so any negative news about a consumer, potential that could create a sell-off in the market.

how widespread were the signs of that slowdown? i saw those same earnings report. some indicated a slowdown, others did not. >> yes. well, i think, you know, we saw this with home depot, with starbucks, with which i pot pot lay. i think we're seeing it on the higher and lower end as well. i think investors do need to be cautious here, because we're entering historically one of the weakest period of the year. we know about the september effect, and a lot of investors are very overly concentrated in big tech right now. >> dean, just brotherhoodening bac broadening back out, you've maintained this posture that the economy would keep growing. do you still see signs there's enough to keep this expansion going? and what does that mean to this

very different economic cycle, they don't tell us what they once did. >> yeah, i think we are going to see continued growth here. that's our view, and there's a few reasons for that. one is that, despite the reports you're hearing from some of the consumer companies, a lot of that is inflation is coming down, which is exactly what the fed wanted to have happen, so less pricing power. the bottom growth on real consumer spending is pretty good, 2% to 2.5%. that's good enough to keep the economy growing somewhere in the 2.5% range, in our view. it's just a very different environment from the very rapid inflation we saw over the last couple years. >> aadil, you point out what concerns you is the concentration that many people have in their portfolios, or for example, s&p 500, where three

stocks make up the index, or whatever the number is. how do you know when you have too much concentration? how much is too much? >> i think the general rule we like to follow is not more than 5% in any one stock, right? and we saw what happened with tesla. they had a monster rally until 2021, and then the stock is down more than 20%. if we add back alphabet and meta, 40% of it is almost in technology. on the way up concentration works, on the way down it can be very dangerous, so we feel that investors should focus on increases the breadth in the portfolio, and focus on sectors that will benefit more. >> to build on the rate cut

thing, what are you expecting now in terms of cuts? the two points' worth? >> yes, i think probably that's what we're going to get. the market has probably factored that in. when we get the rate cuts, i think certain sectors will again fit tremendously. different-paying companies, for example, will do well. there's nearly $6 trillion in money market funds, and once rates are cut, they need to gravitate somewhere. for example, if you look at pfizer, that stock year to date is pretty much flat, but the dividend yield is about 5.8%. thoseare the areas of the market we are now more interested in. >> dean, what do you see as an economist as the biggest risk to the economy right now. is it the consumer spending slowdown that aadil pointed to?

is it rising unemployment that we saw in the most recent print a couple weeks ago? what is it? and how worried are you that we might not get a soft landing? >> the thing to focus on here is corporate profitability. the reason is that would be what would drive a significant layoff activity, which we have not seen so far, despite the rise in the jobless names are really only 1,000 above where they were a year ago. they're still at a historic low level. i'm confident that corporations will continue to hire, in farther because corporate profit margins are close to the highest levels since the 1960s. that's not been the environment where corporations start to lay off hundreds of workers. dean maki, thank you, aa aadil zahan, thank you as well. the yield is just 3.8%.

rick has more. so interesting to watch the downdraft into the print, and then they said, eh, it wasn't that good. >> but the markets have already made a significant adjustment. as you look at the 24-hour chart, not much different. so the curve is reinverting a bit. we're at individualually 1 1/2-month yield. and a lot of that is built in. this particular number, well, we have the man here. we have casey mulligan, okay? he was the chief economist in the trump white house, and we're going to ask him the question, all right, i'm donald trump, you're sitting at the table. you used to visit once a month, didn't you? >> he sent us over to the federal reserve to meet with powell and the governors once a month to make sure we were on

the same wavelength, which we very much were. >> what was the main discussion on those monthly visits? >> people retiring, what would be good economists to participate in the fed board in the future. >> and maybe smooth over -- >> there was some prodding in public, you know. >> i really like that. i don't mean to get off-course. the image painted by the media was trump was in powell's face, you gotta ease. any truth to that? >> he said that in public. >> was that a direct confrontation? >> no. give me your report for today. >> we're supposed to be at 2%. the fed emphasized that, and we're not there yet. we went up to nine, and -- they have one job, 2% inflation. >> they would argue they have three jobs, inflation, maximum employment, about ultimately, we

have switched gears, haven't we? inflation is what the public is concerned about. all of a sudden the fed is more concerned about the labor market. >> they can't really influence the labor market. that's why i say they have one job. if inflation isn't where it's supposed to be, the buck stops with the fed. >> you've been in the situation politically, what kind of headlines will we see if the fed decides to ease, mostly based on weaker labor market, but yet inflation, even though it's cooled rather dramatically, lately it's basically stayed about the same, minor infractions to the down side. the public is really big on this. your final thoughts. >> they should not get distracted by other issues. inflation is what people care about, and inflation is what they can affect. >> casey mulligan, always a pleasure to speak with you. kelly, back to you. good questions, rick, thank you.

news that the doj may be considering a breakup of google. we'll dive deeper with the shares lower today, next.

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today on the reports that the department of justice may try to break up the company. eamon javers has the washington angle of this story. >> the judge found last week that google is an internet search monopoly, now the question is what to do about it. he asked for remedies in september. a number of media reports have suggested that breakup of the company could be on the table. that's literally true at this stage. by definition, at option are in play. the question is whether the department of justice is willing to go that far, and what the judge things. job than cantor was asked about this yesterday. here's what he said.

>> that case, u.s. v google was the first litigated monopolization case since microsoft. these cases don't come that often. >> you could maybe read into it go big or go home. google has said it will appeal the decision. whatever happens here will take quite a bit of time. next hearing is scheduled for september 6. guys, back over to you. >> september 6 is the next hearing, but the judge wants some remedy proposals by september 4th? >> yeah, he wants all of that in hand and then move forward with the hearing and figure out what to do. the question is, what will the doj propose in the documents? we don't know that answer.

i question the questions for investors, when you break off subsidiaries, a lot of m&a guys like to talk about unlocking value. the question is, with google, is there value if you broke it up into the constituent parts. are some worth more individually to investors than the sum of their parts as the overall a alphabet entity. now necessarily clear to me as a washington guy, but i'm sure people on wall street are looking at that. now to a story, the chips act was supposed to help u.s. companies compete with chinese rivals. zero dollars have been delivered. seema mody has the story. >> zero dollars. the ultimate goal was to get high-end chips manufacturing to the u.s. two years in, no money has been

distributed to recipient. a senior administration official says the commerce department is working dill sweptly to get funds allocated this year. intel that is five plants in development. the cfo telling me in early august despite the cost-cutting efforts, there are no changes for the foundry plans. wolfe analysts are unsure if investors will remain patient when intel's manufacturing is expected to turn profitable. they're proposing a joint venture with taiwan semi. intel does intend to produce the wafer the first half of 2025, thoughts it is said that delays are likely in the grant doesn't come through form in february, microsoft's ceo nadella did say

that microsoft has chosen a chip design it plans to produce, so a good sign there. we have seen shares of intel underperform this year. >> what is taking so long and why? >> a shortage of talent. >> talent to do what? design or build? >> both, right? to have the individuals who have the expertise to build these chips, it's incredibly complicated. there's a reason that taiwan semiconductor is the reason and capital investigates 5% of market share in the world. >> so when intel was struggling, there were a lot of criticism that u.s. money was being wasted, basically trying to prop it up. >> that's one of the big questions. given that the challenges it's facing in its core business, how does it affect the company'sled to speeds up a number of up forries. in addition to talent, they certainly got a nice injection

from apollo and brookfield, but when does the chips act money come in? and will it be enough to support these efforts. thank you, seema. still to come, silver or gold, which is the better tool to navigate markets? we'll findut o in our market navigator segment.

welcome back to "power lunch," everybody, and our market navigator segment. despite the recoveries from last week, jeff kilberg joins you

now. how are you using futures here to play government? >> ty, it's interesting to see gold futures in the december contract you're seeing a discount. it's been a volatile session. that cpi data questioned the fact that the fed will not have the ability to do that bigger rate cut, therefore, when you see the fed watch tool guessing that 50 basis points has gone down to 30%, you saw a sell-off in gold. i'm a buyer of gold. despite that china has taken a break from buying gold, i think it continues to move higher. at 2480, i'm looking for us to go to retest. we were just there berg. so i'm looking for a test of

2520. i want to be mindful. we see a stop, i want to be stopped out there at 2460. i'm risking $4,000 to make $4,000. >> so sell out at $20 below, you would be obligated to sell, right, at that 2520 number? could you sell sooner? >> no, 2520, all-time high was 2522, so i'm looking for a vie visit. we almost had it this morning. so, i think, as we see central bank, owning 70% of all gold ever mined, as we see them reengage, i want to hop on the coattails. >> thank you, jeff. see you, tyler. a chip off chipotle. should investors panic? panic is rarely the best recipe

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declares mpox emergency. the w.h.o. says it can accelerate research and funding to help contain the spread. there's been more than 500 deaths reported so far in african. president biden took part in the white house's first-ever creator economy conference. 9 gathering of about 100 digital content creators is focused on issues facing the industry, which has boom as social media platforms make it easier to monetize content.

nasa says it could be a week or more before it decides whether the two test pilots on the boeing starliner mission could remain at the international space station until early next year. they first arrived at the iss back in june. if they could come back on the starliner from boeing, they would have to wait until february to catch a right on sp spacex's next flight. they were only supposed to be up there about two weeks. >> it's an alarming situation. i hope they are able to solve it. bertha, thank you. meantime, shares of starbucks giving back part of yesterday's gain. niccol will be a new ceo, but chipotle is once again following

a decline yesterday on his departure. are investors right to be so concerned about the future of chipotle? >> chipotle is one of the rare companies that's been performing with strength. it seems like investor are clearly disappointed with niccol's departure, the company is steady with scott boatwright. he's been part of the turnaround plan in the next six year. and jack hartung is staying on board. he planned to retire in 2025, but will remain with the company indefinitely. wedbush with an upgrade, writing that he believes the company is in good place and good hands.

peter slate echoed that sentiment yesterday. he has a $67 buy rating on the dock. they beat on same-store sales again, and a reminder, the company says it's still seeing growth in all income cohorts, as it's not shown any price resistance so far. that's a rare position for a restaurant in this environment. back over to you. so, generally, the feeling is the bench is strong? >> oh, absolutely. these are veterans of the company. they've been there during the turnaround plan. most analysts out with notes say that scott boatwright may wind up getting the ceo role after all. >> indicate rogers, thank you. >> thank you. our next next maintains his

$70 target. >> thank you for having us. i think, look, despite some of the concerns, that kate ways highlighting earlier is not over. some of the concerns in the investment community is on the team, but we think the point of scott boatwright is suggesting there's a deep talent bench, with more transition happening. we think the board has conducted an external ceo search just for corporate govern usages. that is going to be showing once again that chipotle has evolved from a one ceo-led fee into being a company that institutionalized some of the things that scott brought into

chipotle. >> i'm inclined to think he is really that good, so convince me that the system is now greater than the person. >> yeah. i would say, when brian inherited chipotle, there were a couple things that didn't quite work for the company. first, the brand was not as visible. back in the day, it was suffering from social media scares, and brian worked to make the brand much more visible, and become an attractive brand for gen z and gen alpha. with tiktok, there are more likes on chipotle than some other iconic brands, indicating it's been on a journey to attract a new consumer base. secondly, a mobile engineering of, enables mobile pay, which is

something that starbucks has miss fog quite some time, and reintroduce at a higher pace the chipotle lanes as well as digital-only line that enables the operations in the store not to be affected by the high ooh demand. i think it's hard to overstate how skillfully mr. niccol led this company through the pandemic, and continued after the pandemic to show increasing revenues, increasing same-store sales, even in a sector where that is proving to be much more difficult for many others. >> i would 100% concur. the idea of using some prudent pricing strategy enabled them to create a perception gap against peers that propelled the traffic

growth that we're not see. the only nuance i would put on -- >> when you say a value perception -- let me just interrupt. i want to be clear there. what you're saying is we're going to premium price this stuff, but we deserve it, because it's better. >> that's correct. >> we have offer abundance of food, made from scratch in front of you that nobody else can offer. the only nuance i wanted to put on the statement is, while i completely agree with you that brian niccol was a key engine behind it, he was surrounded by a great management team all around. all right. thank you very much. we appreciate your time, denillo gargilo. god, a burrito would taste good

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welcome back to "power lunch." you can see it there, 21% of americans between 18 and 34 have at least done some online gambling, according to our cnbc generation lab poll. here's where they say, at least 100 a month the shares are jumping 10% today. contessa brewer has more. it's trouncing expect's, and across, its growth here is not reliant or online gambling

fanduel's pare of 33 look, its fiercely defending its status. the market share, based on gross gaming revenue, 47%. what's more, flutter is highlighting for investors that fandual now returns on -- that, of course, if you're going to outside vendor, and floes er it significantly raise the full-year guidance. the stock is up, as you mention

ed when we're talking about the sector itself, it's clear that fanduel is the company we could by paying more attention to. because it was traded overseas, it was easy for investors maybe to ignore in this case, they have made it clear the u.s. is their priority. their primary listing is the new york stock exchange. >> what does this say about the players in this area. >> it says they have a lot of catching up to do. >> let met just talk about draftkipgs in particular. something interest happened. we are not going to add a surcharge -- >> this is the big thing. >> -- on to winning bets on high

stakes states. you want to raise taxes in illinois, we're going to charge our winning customers in illinois a surcharge for it. jason robbins, the ceo of draft kings said not only do we think it's a good idea, our competitors to follow suit, but what happened, they didn't. penn didn't do it. >> fan duel, it's the giant, and it said not only are we not going to do it, we're going to revise our marketing, more specifically tailor -- >> explain what the surcharge was. i don't get it. >> they want, to offset the impact from this higher tax rate, we'll put a small fee on a

winning bet. >> so it was a tax that was going to apply to the company, not to the winning bettor. >> that's right, but draftkings said we're going to follow sue. fanduel said not only are we going to follow suit, we think our smaller competitors are actually going to help us, because they're going to increase their fees, or they're going to charge more to their customers, and we're going to gain more share. inches will they lose money? >> right after, draftkings said we're not going to do it. they reversed versed course. stand duel says it expects a $40 million impact in the second half of this year from the illinois state tax hike, but they say they're what they call the flywheel, where customers are taking their proprietary

tech technology, but it'snot going to matter. >> they're willing to pay the mo money. >> they would be the highest tax rate in illinois. the other thing is there's some skepticism, but new york charges like 51% tax rate here, it's clear that states could make a lat more money. light and wonder is out with a new report they could make $15 billion on tax revenue if all the of the states that currently offering legal casino and sports gambling. a corporate tax rate is 51% in new york state? >> online gambling, right now which is only sports betting. there are some people who are calling for i-gaming. don't forget they have three more casino listen licenses to award around new york city. >> that's right. it's hard for them to do

business here, and it's where scale matters. a lot of operators want to be in new york, because it's not the biggest state for sports gambling. wire not going to get a sense of florida, because hard work, aka, the seminole tribe, is not sharing their numbers. florida may rival new york, but we may not know that. >> flutter will be taxed at the highest rate potential, so maybe they're just swallowing it right now. >> it's kind of like a handicap. >> contessa, thanks. shares of brinker international plummeting on some unappetizing results, the worst day there in more than two years. we'll trade it ahead in "three

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time for today's "three stock lunch." if we could do more, we would, but it's going to be three every day. some companies are warning of a slowdown in the consumers. doug butler, portfolio manager at rockland trust, first up. walmart. despite a pullback in consumer, greg melich sees it as a safe haven in the sector. how about you? >> we think that you should probably -- if you're on in a tax-exempt position where you don't have a big tax gain, you should sell it here. it's a great company, but the

price has gotten a bit ahead of it itself. we think that you have opportunities elsewhere in the space. a lot of people are riding into that defensive trade, but there's a lot of great news that's very much based into the price of that stock right now. >> you were careful -- i heard if you own this with a tax-exempt account, you would sell it. >> yes. >> what if it's out of that? >> then you have to consider. we generally would say probably, you know, somebody who has a 60%, 70% in the game, they should hold on. again, it's a great name, unless it makes up too great of a percentage of your portfolio. >> good answer. let's move to victoria's secret. they named a new ceo, formerly the ceo of rihanna's popular

brand savage fenty. what do you do with the stock, doug? >> i think a new ceo great, and she has a fantastic background. i think it's hard to see that victoria's secret can turn itself around. this is the first time we're talking about it, other than the song, since they came out in, like, 2021. i hadn't thought about the name other than occasionally seeing it at the mall. it's been a bad company for a while. maybe she can get it turned around, but most people don't have profits here. you take the winnings of today and you move on. all right. interesting. finally, we go to brinker international, as rising costs eat away at the quarterly earnings, but the company did

post a sales bump at chili's your trade here? >> i think you buy it. what we learned with the sales growth, people still want their baby backs. they have chilies and marciano's. they really got hit because cost inflation for them. labor costs were a bit higher than expected. food inflation came in right around where it was expected. there was just a bit of good news baked in. i think it's up 45% year to date. something like 70%, 80%, but we still think it can go higher. we think there's ample opportunity to, like, be more judicious with expenses and continue to have this revenue growth at chile's. >> down 10% today, however. >> it's 25 years old. >> why are people going back to

chili's all of a sudden? i don't get it. >> i think there's some sense of nostalgia, but also, it is a good deal, and oddly enough, i think i was there two weeks ago. the food is very tasty. doug, thank you, sir. kept hochman will join jim cramer later this afternoon. follow and listen to "power lunch" wherever you go. and we're back right after this.

the dow is back above 40,000, helped to some extent by the in-line cpi report that kept people happy, or status quo, not

too much of a weak are economy. now we turn our attention to jobless claims. in the meantime we are watching 13-f filens, and we just heard from tigard global. contessa brewer has the details. >> we're looking at chips here, a new stakes in applied materials. tiger global added a new i suppose in unitedhealth and dissolved its entire stake in maplebear, which does its business as instacart. >> contessa, thank you very much. we just got about a minute and a half -- a couple minutes left in the show. several more stories. number one is about home loan refinancing, up 35% week over

week, as the average rate on a 30-year mortgage fell to 6.45%, according to the mortgage bankers, reify apps also up 18%, that's their stronger week since may of 2022. people when had the mortgages at the 7% level, higher 6s, they're seeing rates come down, maybe switching out and we could expect to see more. >> the servicers, like mr. cooper and others, those have been doing well. >> mr. cooper. >> mr. cropser group. our favorite company that name. kellanova making news that mars is acquiring it. it was just created when kellogged split into two last year. it's the biggest m&a deal of the

year so far. >> that's a lot of money for cheez-its and pringles. >> i'm going to say something understanding popular, the ultra-processed food book, i think people are understanding that these things aren't that great for you. i can't help but ponder, as the industry churns and consolidatings. i'm not sure we'll all love them in the future. >> i think of mars as a candy company, not a snacking company, but i may be wrong. >> primarily, that gives them the front of the store with the candy and back of the store with salty snacks. let me talk about my people, the norwegians. they posted a first-half profit of $138 billion, driven in part by an ai boom. norway's so-called government pension global fund says the profit was thanks to very strong returns on its equity

investments, with most of the gains concentrated in tech stocks. it's one of the world's largest investments in more than 7800 country over 70 countries around the world. they've got about 6 million people. >> they have trillions. we need a sovereign wealth fund as well. that's the point of this. we could invest in all of our snacks. "closing bell" starts right now. thanks very much. i'm scott wapner from post 9. this make-or-break hour begins. we'll ask jeremy siegel in just a moment when he joins me live. we could wait for that conversation today. in the meantime, the scorecard with 60 minutes to go in regulation. another favorable inflation read. the dow back above 40,000, and it is holding there, right around the highs of the days