gross margins were better than expected. the topline was soft, but the stock acts really well. >> farmer jim? >> applied materials. we talked about it earlier. it's up 3.5% off of the lows. that's a good sign. >> looking good for stocks right now. see you on "closing bell." "the exchange" is now. ♪ ♪ thank you very much, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead. sentiment rebounding in august for the first time in five months. while yesterday's retail sales beat also has stocks surging. but one portfolio manager says investors are ignoring two significant market risks. we'll tell you what they are. plus, we'll hear from kamala harris. she'll lay out her economic agenda next hour. we'll debate the policies and proposals ahead of next week's democratic national convention in chicago. the builders are under pressure after housing starts

fell in july, and we'll dig into the data and the big changes coming for buyers, sellers, and agents alike. but with stocks on pace for their best weekly gain in months, let's start with dom chu. >> the best week on case for, since november for the s&p and the tech heavier nasdaq index. the dow industrials, the best since the end of last year, roughly about december or so. if you look at the dow, the s&p and the nasdaq, we're floating just about near session highs. the dow industrials up 135 points, 1/3 of 1% gain. 40,698 is the last trade there. the s&p 500 is at 5560, up 16 points, about 1/3 of 1%, as well. at the highs of the session, up right now 18 points. down 18 points tat low so tilting towards the upper end of the range. the nasdaq, 17,661. that's also up 1/3 of 1%. 67 points to that level there.

so keep an eye on that. as for what's driving the big week in months, the biggest one in months. check out these sectors in particular. it's technology, consumer discretionary and financials. tech and financials and discretionary, very cyclical sectors. mega cap tech plays a part in this entire trade. those are the three best performing sectors on a one-week basis. so traders are trying to read into weren't that does bode well in the coming weeks and quarters. and two stocks consumer focused, that have been beaten up a lot. we're talkiing nike and starbucks. they were among the best performing stocks in the s&p 500 this week on some of the fundamental headline drivers here. a new ceo over at starbucks and chipotle's brian niccol. nike, getting some activist love, helping to drive that stock over the slastlast week.

so it's interesting to see if these value type plays are becoming attractive for institutional investors given the changes we have seen. >> it show it is you shake things up, it can pay off. the week's strong data has sparked a debate how much the fed should lower rates. some is baked in at this point, but my next guest says if they focus on too closely on certain names, they could get burned come september. joining me now are my guests. welcome to both of you. so you don't think we should put all of our eggs in the lower rates basket? >> not necessarily. so generally speaking, investors seem to think that lower interest rates are better for growth stocks than they are for value stocks. but i think it depends on the shape of the yield curve. there's basically no doubt that the fed is going to be decreasing the fed funds rate and we're going to see lower

short-term rates. but that doesn't necessarily mean that long-term rates are going to go lower or stay as low as they are now. we have had an inverted yield curve for quite a while. and there's a good chance if the economy is doing well, which it seems to be, and the fed loosens up a little bit, we could see the yield curve start to normalize and we could see, you know, the ten-year yield go higher than it is now. and i think that would actually be, you know, better for the value kind of stocks that pay good dividends than it would be for growth stocks that pay no dividends. >> you're opening up horn et's nest of debate. as we talk about fed rate cuts, you might call it elevated by historical standards, and some debate that's because of fiscal or otherwise. what are you hearing? what would you say about this? >> yeah, i've been fascinated in

theorys of the disinversion, if you might call it that. maybe that's a bad novel name or something like that. the idea that you can have the ten-year go up further while the two-year comes down, it has to disinvert some way. it's not been entirely clear to me how that happens. it could remain relatively flat if you have a lot of confidence in the federal reserve and its ability to maintain lower inflation for a long period of time. maybe that spread ends up being something new or the lack of spread ends up being something new. if you might, maybe this is a good moment for people to understand, you know, reinvestment risks. everybody said, to buy the two-year because it was higher than the ten-year, well, six months ago that made sense. all of a sudden people are going to have one and two-year notes coming due that they bought because they were so lucrative. now they have to reinvest them at a much lower rate.

so i think there's something to the idea of spreading out your fixed income investments across a ladder of tenors. >> absolutely. about a year ago, steve, when i was on with you, you asked me if i was investing in the ten-year or longer term bonds. i said no, definitely not. but recently when we saw the ten-year yield up around 4.8%, i bought some 20-year bonds and ended up with some pretty good capital gains on those. so, yes, there is that reinvestment risk. if the fed decreases rates gradually, i don't expect huge decreases. i know that a lot of people are now talking about two 50-point decreases by the end of the year. i don't expect that. i think the fed is going to be much more gradual. my view was all along that the fed should have started in january and should have decreased by 25 basis points every other meeting, which would take us to the same place we

will be if they decrease by 100 points between now and the end of the year. >> go ahead, steve. >> kelly, i thought -- i didn't hear what you saw, i thought you said weak strong data. that's really what's going on in this economy, if you think about it. we've been back and forth. lousy housing numbers today. we had the weak jobs report a couple weeks ago. we had a great retail sales report and jobless claims have been moderate. that's why we're back and forth, if you look at this essentially -- let me double-check for you, this 50-50 probability that we have right now of a 25 or a 50 -- it's 74 for a 25, but 50-50 for a 50 in november. so the market is really going back and forth along the lines that he was talking about. >> so i guess tell us, you know, portfolio wise, what stocks you feel most conviction about, what

names -- is your portfolio reflective of one that might not be a high flier if we don't get a substantial move lower in rates? >> you know, as you know, i do tend to be a value investor. i do invest in other kinds of stocks as well, primarily through etfs. but when it comes to individual stocks, i tend to favor value stocks that pay good dividends that have been proing over time. three of my favorites are pfizer, verizon and ibm. i haven't been adding to ibm because i bought that sometime ago and it's become a significant position in the portfolio, but i'm holding onit to and the dividends are still growing. verizon, i still like it at current prices. pfizer also offers tremendous value. that stock has been killed primarily because covid is over. but they do a lot of other things and they may pay off and

the dividends are still growing. i view these stocks as substitutes for bonds. they're very similar in the sense that, you know, they're long-term investments. they have very good yields. those dividends grow, whereas the interest payments don't grow. and there is a potential for capital gains. >> and if you think this small-cap rally will continue, you're looking through etfs for small caps and for mid caps, i don't know, steve, 15 seconds? eight, ten? >> 15 seconds. what is your view on the five-year, is that a nice place to park your money? i'm going to ask you this question and we'll come back and ask a couple of months from now what you think. >> no, i'm not investing in the five-year yet. i'm still investing primarily in short-term t-bills. i will continue to do so until i see that yield curve move up. then my plan, my hope is if that happens, i will be moving back into ten years or longer.

>> five year is the lowest across the curve right now. thank you both. appreciate it today. >> thanks, kelly. >> steve will be live at the fed summit in jackson hole next week. our coverage kicks off on thursday. you don't want to miss it. high rates and low affordability hit housing last month. let's bring in diana olick for more. it's a big day in the real estate industry for other reasons. >> first, on housing starts, it was a big miss for starts and building permits in july. starts down 15%. multifamily, it was up 12% from june, but down 22% from a year ago. that's because we're just seeing a record new apartment supply come in on the market this year. single family permits, which are an indicator of future construction, didn't move much month to month and were just 2% lower from july of last year.

this is all about interest rates. the 30-year rate started to drop in july, but the big drop was in august. but rates, of course, affect builders' borrowing costs, and that's hitting them hard. so maybe some relief in the fall. >> maybe, maybe not. but probably. so new rules are set to take effect this weekend, the ones that will maybe change real estate as we know it. what can you tell us? >> well, they will change real estate. this is a landmark anti-trust settlement that will fundamentally change the way real estate agents are compensated when you buy or sell your home. the national association of realtors agreed to take offers of brokers' compensation off of their listing database, and buyers will have to sign agreements of compensation with their agents. so in the past, both buyer and seller agent commissions were usually paid by the seller. now, some have claimed this could lower home prices because

sellers baked that commission into their price. i spoke with the ceo of one of the nation's largest brokerages about that this morning. >> i think that's categorically false. the value is dictated by the supply of properties and the affordability index. as we saw interest rates retreat by 6%. we have a fundamental lack of inventory in this country that comes from the financial crisis where we didn't build enough homes for the household formation we have experienced. >> there is widespread concern for first-time buyers who might not be able to afford the commission, so they might choose not to use an agent. that could hurt them if they don't understand appraisals, closing costs, all the things that an agent is there to explain. >> you know, the nice thing about an agent, you can say this is what i'm looking for, or they might look around for you. how would that work if you tried to do it on your own? sit changing the way people

might schedule a showing or access a home? >> so much of that is in technology now, right? you go on the website of whatever company or just the general zillow or realtor.com and look for homes and decide to viz it one. what this is talking about is when you decide to make an offer on that home. you can visit as many homes and you want. would it be easier to have an agent help you streamline that? yes, that would be helpful. but what this says is if you are going to make an offer on a home, before you do that, you must sign on with a buyer agent to make that offer, and if you don't want to use the agent -- so you would have to pay that buyer agent. not the seller. in the past, you could show up and there might be an agent there and you could use that agent as your buyer agent. now you have to sign an agreement first. it has to be decided if you pay that agent or if it will be somehow paid in the way the seller is using perhaps some

offsets to it. >> sounds complicated. nevertheless, it will be interesting to see how it shakes out with everything else about housing up in the air. diana, thank you very much. still to come, kamala harris is set to speak next hour, unveiling her plan to lower costs for the middle class. our guest says the campaign believes inflation is her biggest vulnerability. a look at what to expect from her. you heard of ai chatgbt, but what about a bot that you can have while shopping online? we'll speak with the ceo behind this technology next and how it could reshape retail. "the exchange" is back after this. >> this is "the exchange" on cnbc.

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gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. welcome back. 2024 is shaping up to be the year of generative ai. a recent mckenzie survey showed 65% of companies are using it on a regular basis. that seems high. that's double the percentage from another survey, just ten months prior. the marketing and sales segment has seen the biggest usage increases with gen-ai enabling personalized markets. as i found out, customized

discounts on some products. yes, i haggled with a chat bot. here's how it went. i kind of want a california king. i'll settle for the memory foam mattress, in stock, but quite pricety, $650. so, make us an offer. let's see. hi, i'm hear to help you negotiate a better deal. since you're chatting with me, i can lower the price to $625. what do you say? i say that's not low enough. how about $200? i mean, $200 would be pretty nice. they gave me a laugh and cry emoji and said that technique isn't working. $598.50? no! how about $150. getting sassy. that's not going to work. i need an offer i can seriously consider, so make your next offer count. how about $399.

got a little thinking. keep in mind it comes with a 60-day trial. no, no. how about $499. we're get thing slowly, but that's not quite enough. oh, could i accept $535.99? i mean, that's better than -- okay, one more time. how about $515? that's it. sold at a 21% discount. does that mean i got $515? i have the card, baby. joining me now is rosy bailey, the co-founder and ceo of that haggling chat bot, which is called nibble. with deidre bosa. welcome to you both. deidre, you can explain how this is very quickly becoming common place. but rosy, welcome. first, can you explain how it works? does it know anything about me?

does it already know how low the price can go? what are the parameters around this experience? >> by the way, we started this business and i watched a lot of people using the chat bot, but that was the best. so thank you very much. umm, so the retailers set some parameters and give the chat bot some guide rails. we don't want you to lower too much, we want you to maximize margin, and after that, nibble does its best. and the way it works that out is it -- we work with a professor of negotiation, so there's some behavioral science in there. there's also an algorithm. >> so, by the way, can you tell us, what are the results for companies so far use thing technology in terms of -- it did offer me a few times a decent

deal. so maybe if they're selling at lower prices, but maybe it's increasing sales. what are you found? >> so a lot of our clients have seen more than 20% uplift in sales. some have seen 125%. and most of them see a margin benefit at the same time, because obviously this chat bot is offering a discount. but the margin benefit is relative to them. >> and deidre, what i found interesting about this is, because i couldn't figure out exactly how it worked, it made me want to use it a little bit more. sometimes it would stop a few bucks short, give me a bigger deal. i could see me or my husband, i could see that person sitting there, you know, trying to find the best deal, and maybe therefore ending up further down the experience than they would have just simply browsing the website. >> yeah. everything is gamiified these

days. that was so charming. i loved the laughing emoji when you low balled the offer. that is in line with what we're seeing with google and openai with advanced chat wobots. the idea that they're more hue lan-like, i was trying to get through a traditional chat bot, and it was so frustrating. this chat bot certainly is in line with some of the most advanced ones that we see from the big players. i guess, rosy, a question to you, though, really on the business model as well. this feels almost like an ai powered groupon. really good at drawing in bargain hunters, but one of the problems groupon had, it was able to pull in one-time buyers but not very good at making sure people had that brand loyalty, which led to merchant fatigue.

that's a good question, we're a young question. so there's a little bit of, we'll find out. one of our clients has been using this as a permanent feature on their website for two years now. they say as long as you spend more than a minimum value, you can negotiate. we've analyzed users of nibble, and their repurchase rate is 10% higher than those that don't use it. so i think you noticed that the chat bot talking about the brand, talking about the brand values, and perhaps that makes a difference. so the numbers seem to show that, but we have to keep working on that. >> maybe cover your ears a second, it wasn't the smoothest experience always. it's new technology. maybe that's part of the charm almost in it is figuring out how it's going to work. i would be curious whether,

deidre, this is an implemented technology that retailers use or if it becomes itself a new way of shopping through, you know, look at the rise of temu. could there be an app that has the best cutting edge technology and takes us all the way to the max. >> right. that's a really interesting question. because what you see with temu, why they've been so successful with the american consumer is again that gamification. this this isn't particularly new. i don't know how many people that are willing to spin a spiel compared to a chat bot. i lived in asia for many years, and haggling was part of the fun it. i wonder, rosy, if you can outsmart the system by asking chatgbt to bargain with your chat bot? >> we've had everything.

we've had everything. in fact, we had a very nice google analyst technician, who bought a mattress last month. nothing to do with us. but he put this on twitter, and his group of friends -- we've never seen quite the volume go through, but it department break or give anyone a crazy price. i'm wondering if it's happening now, do you know what i mean? >> absolutely. rosy, thank you for bringing this story to us and creating kind of a fun and new retail experience that is absolutely going to go main stream. appreciate your time. deidre, thank you for joining us, as well. coming up, the $30 billion classic car market is stalled. those beautiful hot rods just aren't flying off the lot like they used to.

what will it take to turn it around? we sent robert frank to california to find out. robert? [ inaudible ]

welcome back to "the exchange." i'm tyler mathisen with your news update at this hour. two white house staffers are expected to leave the biden white house soon to join kamala harris' campaign. sources tell nbc news the harris campaign is expanding in the final 80 days until election day, and that the campaign plans to announce more new roles as early as today. ford will recall 85,000 suvs over engine fire risks, according to the national highway traffic safety administration. during an engine failure, oil and fuel could release into the engine compartment and build up near ignition sources like exhaust components, which could cause a fire. the recall affects some 2020 to 2022 explorer suvs. and britain has temporarily

halted the export of rare wartime papers that belonged to world war ii code breaker allen touring. the british culture department said today the export bar was put on some of his unpublished works that had been sold at auction. this gives the british institution time to match the sale price. kelly, back to you. >> they don't want to lose it. thanks, tyler mathisen. prices and sales of classic cars are down double digits from their peak just a few years ago, and this week the market faces a $400 million test, with some of the most expensive cars in the world going up for auction. robert frank is in monterey, california, with a closer look at these cars and the collectors behind them. robert? >> reporter: more than 1,000 cars are expected to cross the auction block, just starting now behind me. they started to auction off, and they're hoping for $460 million in sales this year. that would be an all-time record and mark a big turn around for a market that, as you say, has

struggled rerecently. that was because of high interest rates and a big divide between what sellers expected with price and what buyers were wanting. now i'm told that the sellers have capitulated in the classic car market. so prices have come down, especially on the older 1950s and '60s cars, and you are now starting to see deals. >> the mood is good. there's a buzz. you can -- don't ask me to quantify it, but you can feel it. people are here to do stuff. whether it's to buy or sell. >> reporter: this has also become the world's biggest stage for super car reveals and unveilings. lamborghini announcing moments ago the launch of its new vehicle. this is a v-8 hybrid car estimated starting price $350,000. and the electric carmaker

announcing a new electric supercar with over 2100 horsepower, 0 to 60 in under two seconds. and then we just had here at mecum the unveiling of a car that will head to auction, this was the car that steve mcqueen drove in the movie "lamond," the most famous racing car in cinema. and they won't tell us who is selling this car, but jerry seinfeld was the owner of this car and is selling it. it will probably be north of $16 million, $18 million. this car is going to sell in january at mecum auctions. so a lot of unveils in the past ten minutes, both in new cars as well as auction cars. >> i thought it was interesting what you said how high interest rates have been a factor here in

what they're selling for. >> reporter: yeah, and the high interest rates were interesting to me for two reasons. at the bottom of the market, about half the classic cars that sell are financed. so those high interest rates have, just like they affected mortgages, are affecting classic car sales. now, with the expectation that interest rate also decline, you're starting to get people borrowing again. at the high end, the problem was investors would rather keep that money in 5% earning cash than buying a ferrari like this for $500,000. so it's both the top and bottom that were affected by interest rates. now what's help thing market this summer is the expectation of lower rates in the fourth quarter. >> i'm excited to see the final tally. robert, they all are so gorgeous works of machinery. thank you for bringing that to us. coming up, health care, housing, taxes and groceries, those are expected to be the

main areas of kamala harris' speech next hour. we'll look at the policies she could unveil. and "the crimes of putin's trader" is a real-life spy thriller exploring the secret life of a young russian oligarch part of this month's prisoner swap between the u.s. and russia. scan the qr code to follow and dctsen wherever you get your poas. "the exchange" will be right back. e to grow your business. time to get customers. time to make your future, now. create a website in minutes. how? godaddy. coding... nah. but all that writing? nope. ai, done, built, up and running. you have what it takes. now take it to the next level. create a beautiful website in minutes with godaddy. let's get to work start for free at godaddy.com energy fuels, a leading american uranium producer,

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♪ ♪ welcome back. vice president kamala harris set to unveil her economic plan at a speech in raleigh, north carolina next hour. she's expected to announce policies that aim to lower the cost of groceries, drugs, expand affordable housing and cut taxes for the middle class. joining me now is our cnbc contributor. great to have you here. we have gotten some broad brush outlines of what she might say. what jumps out to you the most? >> well, i think the way i look at this is not so much harris laying out an agenda, but telling a story, and i think when you look at the policies,

the story that will end up being told through those policies is that inflation is not the fault of the biden/harris administration, it is the fault of these companies, corporate greed, and going forward, i have all kinds of ideas that will tackle inflation. i think that is primarily the story they will tell us, because it's clear that is perhaps the biggest weakness of this campaign is their inflation record and the inflation record of the biden/harris administration. >> what i find interesting is i think a lot of the critics who want to say no, no, no, a lot of the public doesn't want people to go back in time and i would say they obviously care how we got here, but what they care about is what it is going to look like in four, six months' time for the cost of everyday life? what is the story that the trump administration is going to tell about that, you know, again, we could debate these policies on their merits, but this is really about competing stories.

>> it is about a competing story. i think you're right that, you know, the trump team is going to tell a story about what went wrong, that the reason prices are up by 20% purely because of the policy choices made by the biden administration. but what is the sort of forward looking agenda? what are they going to say that will tell the american people, life will be better in six moments, a year? they're not going to say, trust the powell fed. they're working on it, getting inflation down. we're going to have a soft landing. that's not a story any politician can tell. so i'm still unclear about what that trump story is, is it a story about tariffs, a story about taxes? i think to some degree it's a little nebulous. >> deregulation perhaps. while people intuitively understand that seems disinflationary on some level, i

wonder if that's kind of the vein to take? i also wonder, jimmy, if some of harris' policies, like some of the profit capping, i can't imagine that's something trump would say, and much like she seized on his no taxes on tip agenda -- >> listen, rather than having these campaigns agree on no taxes on tipping or something, i would love that they agree on massive doing what they can to encourage zoning reform. those would be fantastic ideas if they combined them. so far, some of the agreement on policies, not so great. tipping, there wasn't a lot of difference between the biden trade policy and the trump trade policy. >> agreed. >> that's something harris might continue. so that kind of agreement i'm less enthusiastic about. >> two things you said would be

exciting about is permitting and zoning reform. i can't imagine a democrat talking about permitting reform, and i can imagine a democratic candidate talking about zoning reform, but not a republican administration necessarily doing so. >> i think particularly on this issue of permitting, that involves -- certainly involves state and local level, but national policies. you have a lot of environmental rules that make it hard to build in this country. i can see both sides agreeing on that. republicans, they obviously have a soft spot for deregulation. but there is no way we're going the get any of this clean energy transformation if you cannot build transmission lines or new power plants, or nuclear reactors. so there should be inherently an impulse -- it's going to be tough during the election season, but once we get out of

the election season, for both sides to embrace those kinds of pro-growth, pro-build policies. >> that gives me some area to look for amidst all of the noise we're going to hear on the inflationary front in familiar. jimmy, thank you. appreciate it today. as we wait to find out how closely harris will stick to the biden administration's economic policies, the crypto industry is making a push for her to split with her predecessor. let's bring in emily will kins with that story. >> reporter: hey, kelly. some prominent democrats are cozying up to crypto and a major crypto pac is returning that love. they announced they're going to be putting $6 bilmillion supporo democrats in make or break races. and the crypto pac has raised more than $200 million, one of the big soes far this cycle.

senate majority leader chuck schumer is saying his goal is to get a vote on a crypto bill. crypto for harris gave a shoutout from senator stabenow that was establish cleaner rules of the road for creating crypto token, requiring them to register with the cftc. now, fairfair announced that they would spend $25 million on 18 house races, nine republicans, nine democrats. and they're going big in the ohio senate race with a $12 million in ad buys to back republican bernie moreno, who is running against sherrod brown, who has an f rating from crypto. harris hasn't said much on crypto, but a lot of democrats are hoping she will be more open to the idea than joe biden is,

and we'll watch to see if she mentions it next week at the democratic national convention. >> very curious about that, emily. where are we on the legislative efforts to regulate crypto? >> reporter: it's really interesting, kelly, because you did see the house go ahead and pass a bill a little earlier this year that would have kind of set the rules of the road, said when crypto is going to be a commodity versus a security, kind of set that framework that crypto has been looking for to get clarity about the regulatory environment it might face. now, that passed the house with a lot of republican support, but you also had to get 71 democrats, who voted for that bill. so you can kind of see the bipartisanship emerging there. senate bill is a little different, because it doesn't have the s.e.c. component. that would have priored stabenow to work with sherrod brown and she was not able to do that. there's a reason he has that f-rating. so the senate bill could only focus on the cftc, but that's the one that schumer seems interested in.

stabenow is the chair of the agriculture committee, so they can put it through like that. but would republicans back that bill is the question. several lawmakers who i talked to said they have concerns about what that legislation looks like, and it's going to be interesting to see if they take this up in september when they're back for just a couple weeks and that's it before the election. >> which ever candidate becomes president, this is where the policy will really be played out, and could be very different depending on what that final bill looks like. emily, thanks. we appreciate it. coming up, shares of applied materials were lower today despite beating on the top and bottom line. fourth quarter guidance was higher than expected. shares are down 1.5%. we'll check on some of today's other big movers, next.

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couldn't be much calmer than it is right now with about a quarter point gains for all the major averages, and the nasdaq has turned positive on the month after that tough start last monday. ten-year yield, 3.89. what's leading the way this week? tech, by far the outperformer. up 7.5%. discretionary helped by tech names, as well, after that blowout retail sales number. financials up 3%, industrials and materials in the green. real estate is the only sector in the red, despite hitting a two-year high on wednesday. slight gains throughout the rest of some of the other staple sectors. and a check on some of the individual names leading the market. starbucks, after poaching brian niccol from chipotle, up 6%. nvidia gains about 19%. ulta is up 17%. and micron.

gold is breaking out to a new all-time high, solidifying its territory of $2500 an ounce, up 66% now on a five-year basis. coming up, riding the bull wave. the return of the swoosh and the year of the dragon. we are looking at today's big trader calls. healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

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nothing numbs pain more. welcome back, still all about the consumer, a slew of analysts making ratings changes on big names. in consumer calls edition joining me for that is private wealth founding partner and cio and great to see you. let's start with the big one, walmart shares at all-time highs after earnings beat and guidance hike upping the price target today with profit margin expansion in all segments with more ad sales and subscriptions and this is a buy. >> absolutely. walmart has to be the cornerstone of your staples allocation in any portfolio. such a quality company the way the run and expand, doing different revenue streams, such

a big hit since they released now 40% of revenues now you have walmart plus adding subscription of in which every company loves because it is reoccurring and helps stability and the fact they kept a cap on expenses with cap ex and continue to expand internationally in smart ways. think about the rural communities, walmart is the only choice so the way they run the company is so attractive, shareholder friendly with 14.5 is so attractive, shareholder friendly with 14.5 billion left on buybacks, all-time highs, only until it hits the next so for me it is a buy and buy and hold. >> incredible standout, in the pole position now let's move on to nike on pace for its ninth straight positive day. a nice string although it's been tough. clawing back huge losses that came after the late june sales warning, double upgraded the stock today saying that it changes but they like pushing

back into nike according to the filing. would you follow them in? >> i am and i think we are on the swoosh part for nike for recovery. this is a turnaround story which might not happen at once but they are refocusing on what does nike do well? competing, celebrity endorsements, innovative and new shoes people want to buy. they had a campaign that really accomplished, but winning is not everything, you are nike so winning is everything. there's a lot of upside potential. i love the direction with a little more turnover in the c- suite, they need the turnaround story. for me it is a buy. i think it can be fits and starts, but i love where they are going and they have caitlin clark, the athlete stable is phenomenal. so much upside in women sports with so much excitement, she alone could be a huge catalyst. >> okay that is interesting.

the final buy, the sphere up 43% with j.p. morgan upgrading saying international in terms of the next location. a matter of when and not if. you would stick with it? >> i love this small-cap stock. korea, abu dhabi and las vegas is a must stop for everybody. a unique situation with smells and haptics, so you need to me it has that mode, a buy for me because it is revolutionizing entertainment and concerts and live sports. have the first ufc fight in september. small-company just started but i love it. >> now for the one name you don't like and you are bailing on under a lot of pressure, on pace for its fifth straight negative month down 35% this year. weaker than expected so for those of us who lived through the upswing it is amazing to see the pendulum swing all the way back. >> for me it is a value trap.

everybody thought it was cheap at 201 50, now you have another down looking at the l'oreal results, the turnaround story, revitalizing profit, they may have had one-time charges, china looking weak for them and for the consumer and i don't think or think it is cheap for a reason but it's not one i can touch. >> they were at 400 a couple years ago. who would have seen the pandemic in this way to be a pivot for the chinese underperformance now such a headwind for these names. victoria we believe that there. thank you so much, have a great weekend. that does it for the exchange. tyler is getting ready for "power lunch". i will join him on the other side.

welcome to "power lunch", alongside kelly evans i am tyler mathisen. vp kamala harris bowing to crackdown on high prices with a particular eye on food and groceries. will talk to our celebrity chef wolfgang puck about rising food prices and what the government could do could they convene? >> writing up the screen on draft day and doing it ever since on youtube, tiktok and every form of social media, before that let's get a check on the markets all three averages on