so we have what, target coming up with their earnings, and tjx. >> yeah. i have more confidence in tjx. >> process of elimination. >> i don't own it, but i think it will be a good quarter. you buy it. >> you used to own it. >> i used to own it. >> "the exchange" is now. ♪ ♪ thank you very much, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead. this actively managed etf is up 18% this year. it's got a billion in assets since its launch. we'll bring you the ticker and fund manager. plus, we turn to the charts. our technician says something's happening in one part of the market. what he's watching and what it's signalling to him. plus, owning a home has become increasingly more unattainable for many, but one guest has an idea that could change that.

he's here to walk us through it, and you might say it's a little controversial. before that, let's start with today's markets. dom chu is down at the new york stock exchange. >> we've lost a little momentum in the markets overall, because the s&p right now is down 22 points. this represents now lows of the session so far for the s&p. 5585 the last trade there. the dow down about one quarter of 1%, 40,791. the nasdaq composite, 17,767. it's down 109 points, about one half of 1% declines there. so, again, session lows. fresh right now as of this moment. with regard to some of the big themes that we're watching right now, it's been a banner year for gold prices. it continues today, because we hit another record price. we're currently at 2545 per troy ounce for gold futures. we got as high as 2570, the high water mark for gold prices. again, up about 0.2 of 1%, but a record. we'll put a star up there.

check out these here, many of these gold mining type stocks are sitting at at least 52-week highs. so there's momentum now and those gold miners are catching up to that bigger uptrend in gold prices. so keep an eye on gold with. regard to a couple of names in the news on the commercial aviation side of things, a dow component in boeing down 4.5% after we got some news about their new 777 x model jet. many of their test planes have now been grounded because they found a structural flaw in one of the parts that connects the engine to the plane. they're looking into that right now. another blemish for boeing, down 4.5%. hawaiian airlines holdings up 11.5% because it has key regulatory, anti-trust clearance with its proposed buyout by alaska airlines, sending those shares up 11.5%. so keep an eye on airlines and ire row space.

kelly, back to you. >> dom, thank you very much. stocks may be lower but the market has staged quite a comeback since the selloff two weeks ago. the nasdaq and s&p are up 5% since august 5th. despite these gains, my next guest says the bulk of spots are trading at reasonable or attractive valuations. joining me is tom hancock. less than nine months of 18% this year, and your biggest holding is microsoft. tom, welcome to you. >> hi, kelly. thanks for having me. >> kind of an aside to the main story, do you care about what's going on with work from home or not as it relates to big tech and the fight for instance over google and whether it's lost its edge because it doesn't have more workers in the office? does that resonate when you look at microsoft or the big-tech names or are you looking at valuation and growth opportunities? >> we're primarily looking at valuation growth opportunities. of course, we care about the

culture of businesses and whether we think the researchers, engineers, et cetera, have a productive work environment and we look at our own firm where we have a hybrid environment, where i think works out well for us. the same is probably true of the big-tech firms. a lot of the work people do is well executed at home, so it's not a particular concern for us. i know that's been raised in a couple of instances but not something we would be alarmed about. >> especially if you are among those use thing model. i can't imagine that there's something that nobody leaves the office. what is the most compelling thing about microsoft and why that one among the mag seven peer group? >> yeah. well, we see microsoft as sort of a heads you win, tails you lose when it comes to artificial intelligence. a lot of the artificial intelligence work is being done on the cloud and they're a big cloud provider. given the size of the company,

talking about $3 trillion plus market cap, the amount of cap ex they're doing is just a couple percent of their business. so they can be the biggest player and dominate ai, but it's kind of a cheap insurance policy for them. it's important for microsoft to maintain being a tech leader, and they have the size and scale to have that optionalty. >> you do have exposure to alphabet and a few other names. when you're building a quality etf, high interest or low interest rates makes sense over a longer period of time, but how do you define quality? >> for us, quality is about companies that can deploy capital at a high rate of return going forward. so i think microsoft will get a high rate of turn. alphabet also we will. or there could be other sectors. it could be a health care company, a staples company. the key is a certain amount of growth, but we continue insist on huge amounts of growth.

what we care about is growth at a high rate of return. what that means is you have some moats around your business, you have a strong balance sheet that you can survive the tough times. these are some of the key attributes we're looking for. >> you have texas instruments, thermo fisher. is constellation brands in there? i'm curious about that with this debate how much young people are drinking or people more broadly are drinking these days. >> yeah, constellation brands is in our portfolio. we like that stock a lot. they're maybe a little bit of a special case where some of those broader trends aren't what drives the business. the constellation brands, their key asset is the mexican brands in the u.s., like modela or corona. they benefit from the demographics and their traditional latin american customer base and benefit from increasing penetration across other segments of the affect.

they're relatively concentrated with abilities to expand from there. it's an interesting -- the stock has come under a little bit of pressure the last few months. seen as maybe a victim of tariffs, but we don't think any administration is going to put a tariff on beer, so we see this as a buying opportunity. >> i didn't realize that was a potential headwind. on the question about buybacks for the market more broadly, this is one of the reasons that goldman thinks that the pain train is still to the upside for stocks. i don't know if you have a view on that, but is sort of the aggressiveness of buybacks considered generally a positive thing for you or kind of a situational dependent one? it does seem to be a big factor once again here. >> yeah. it's a situational thing for us. we like companies that return capital to shareholders. we're generally speaking different between dividends and buybacks. what we like best is a company that invested in growing the business, but most companies do

have some limit on how much capital they can redeploy back into their business productively, and we want to make sure they return that excess cash back to the shareholders. so we're fans. >> when you say the bulk of stocks trade at reasonable attractive valuation, do you feel comfortable we're at all-time highs, there's some questions about what's going on maybe with the consumer. but broadly speaking, you don't think this market is overvalued? >> when you talk about the market being at all-time highs, it's a narrow market driven by the magnificent seven. so a lot of that is the magnificent seven are at all-time highs. most of the stocks in the s&p 500 and the russell 3,000 or broader indexes, there are a lot of stocks that aren't at all-time highs in terms of their valuation or stock price. and we actually like a lot of the magnificent seven stocks. that's not to say they're expensive, but you don't want to concentrate too much there. you want to diversify out by

sector or cap orgeography. >> tom, thanks. good to hear from you. appreciate your time. >> thanks for having me. >> tom hancock. stocks are on pace to break their eight-day winning streak today, while yields are on the move lower. they have been inverse liquor rated with equities selling off. it moves higher when yields fall, as recession fears ramped. the tlt kept climbing, and my next guest says there's no way they can keep moving higher. so which one is mispriced? let's ask chief markets technician jonathan krinski. jonathan, not that i'm easily confused, but are we in the 2010s paradigm or the inflation paradigm here with stocks and bonds right now? >> so we think obviously 2022 and the most part 2023, inflation was the main concern for markets. as you mentioned, stocks and

bonds werely correlated. so the bonds could sell off, stocks would go down. since about mid july, when the market really stopped worrying about inflation, it's pretty obvious that's on the path towards the fed's target, i think the market's focus has shifted towards growth dynamics. we saw a couple of ugly prints on the economic front in everythingy august when we had a spike in claims, we had a really poor ism manufacturing number and up ployment rate up to 4.3% and stocks told off. really, since over the last week or two, we have continued to see bonds rally, even though the data has arguably been quote unquote better, leading to the stock rally. we think one of the two

situations -- if bonds are telling the truth, maybe the economic data is slowing, stocks are probably poised to fall back a bit here. and if stocks are, bonds should fall back here. so maybe a bit of both, but when we look at the landscape for equities after eight straight up-days, we saw the fear we saw in early august do a 180. yesterday was the lowest put call ratios since july of 2023. so we have gone from complete fear to complacency here. >> so you think we have come back perhaps a little too far too quickly? >> i mean, look, it's really a function of your time frame. one of the things -- there was a bit of an anomaly in the early august lows. we never got a full washout. what we looked at is when you have a 5% drawdown on the s&p, you almost get a washout with

less than 20% of stocks on the s&p above their 20-day. we never got that full washout. so it will be a historic anomaly not to get that. we have gone a bit too far to stick to that thesis, so rather than a retest of those august lows, maybe we're looking at something like 5400, still almost 200 points lower here. when you add that up, looking at the complacency we just mentioned, we think very tactically the next move is probably lower. if your time frame is a bit longer, if you're looking at year end, you're probably okay. i just don't think the time to get aggressive in buying was in that big spike in early august. this is probably a bit late for a tactical buy. >> i guess you had about a ten-minute window. we've all been pondering this, and there is one alternative. you could have stocks rallies because yields are falling because inflation is receding and the fed is going to cut, and that's supportive of an ongoing

rally. i know the russells are down today, but quite supportive for certain names which high interest rates were a big headwind. so i'm trying to believe in a goldilocks outcome here. >> i think, you know, if you look at the reaction in the bond market, in equities to the recent economic data, the move in claims and retail sales last week was much bigger than the move we saw for the august cp ireport. so i think it's clear the market is moving past inflation. not to say it doesn't care about inflation, but the narrative over the next 12 to 18 months is going to be a growth dynamic. that probably means that we see lower yields that should mean lower stock prices, and we just haven't seen that in the last week or two. so there will be periods where the correlation isn't perfect. >> jonathan, thank you for

joining us. thank you for your time. coming up, housing is one area of the economy getting plenty of attention ahead of election day. and one entrepreneur with lots of experience in washington has a proposal to both increase supply and make owning a home more accessible. john hope bryant joins us to make his case for a 40-year mortgage. the dnc is off to the races in chicago, but one group of voters say they're being left behind by both presidential candidates. that's when "the exchange" continues. >> you're watching "the exchange" on cnbc. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire meet kandi technologies, where innovative, eco friendly design meets exceptional performance. our diverse portfolio includes utvs, go carts, golf carts and e-bikes. explore electric investment opportunities. kandi technologies.

dave's company just scored explore electric investment the comcast business 5-year price lock guarantee. high five! high five! -i'm in a call... it's 5 years of reliable, gig speed internet... five years of advanced security... five years of a great rate that won't change. yep, dave's feeling it. but it's only for a limited time. five years? -five years? introducing the comcast business 5-year price lock guarantee. powering 5 years of savings. powering possibilities.

welcome back to "the exchange." housing affordability is front and center at the democratic national convention in chicago after kamala harris made it a part of her economic platform. my next guest just wrote an op-ed about the issue and how a 40-year mortgage could make home ownership more accessible. joining me now is john hope bryant, a cnbc contributor. good to see you again. we are coming back full circle to something we were bantering back and forth about. listen, some traders have talked about this idea for years and years now. so it's not totally foreign to wall street that we could go in this direction.

but told me how this would work exactly. >> first of all, it was inspired by you. we had this conversation about the state of america and the need for more inclusion in the economy. last week, i believe. k coincidence is god's way of remaining anonymous. right now, you have stagnant wages, the federal reserve has raised rates to keep the economy from shutting down. you have interest rates at zero to keep the markets from seizing up in 2008. home prices have gone up, a lot of other assets because of that, but the middle class has not kept growing. if you're in the working class, forget about it. so what do you do with the --

how do you grow wealth in america? home ownership? if you don't see that as an opportunity, you have people resenting rich people. you don't hate rich people when you become rich. this restores that confidence in free enterprise. inclusive capitalism, so that everybody gets a shot at opportunity. >> it's interesting -- go ahead. well, i was just going to say that the 30-year mortgage has been fixed for a long time, even as home prices have risen substantially. so you say i propose a 40-year mortgage, with federal subsidies for first-time home buyers who complete financial literacy training. and you say look, with life expectancy nearing 80 years, 40 years is more in line with

reality. >> what country has got a leading gdp that didn't do it with good debt? there's good debt and bad debt. bad debt is financing jewelry, financing your vacation or your car rental, financing shoes. i love cars. i love cars, but financing even automobiles, that's going to depreciate over time. this asseti might actually appreciate. so good debt is something that goes up in value. you said already, there is no magic of a 30-year mortgage. it was designed after the great depression, because people lived to 69. now people are living 80 years plus. auto lones used to be three to five years. now they're what? four to eight years. that's normal because of the

affordability issues. this is an appreciable asset, at a subsidized rate, and giving you the financials so you know what you're doing. giving you a shot at what might be a recession during that 40 years, because over time, real estate always rebounds. it's never gone down in the history of america. so it gives a chance for all boats to rise, you have more homeowners, more taxpayers, hello. nobody washes a rental car. so if you own something, you take better care of it. and, again, it's -- just 100 years later, you're saying people are living longer, we have a robust economy. let's give them a longer period of time. >> so here's -- what happens -- this gets us back to what the vice president has proposed for stimulating or making housing

more affordable any way. let's say 40-year mortgage. what if that just makes prices 10% more expensive or nets out to the same monthly mortgage payment, because there's only the same dollars going around in the system? i don't know if you would want to compare that with the merit or demerits of her proposal for making housing more affordable. >> once again, you're on point. but look, the thing that we covered last week was supply. people were saying, the government is looking at whatever levers they've got to make things more affordsable. let's do price or rate restrictions. last week, i thought the answer was more supply. what did the vice president come out and suggest? more supply. it had nothing to do with me, but she's talking about we need 4.5 million more homes in this country right now. that's going to drive up prices right now. if she has her way, hopefully a bipartisan congress would agree,

you would increase 3 million inventory over a period of time, which will decrease the pressure on supply and demand, which will then decrease the abnormal decrease in values in property and bring them down to something more normative. then you add to this, you super charge this into homeowner ship and wealth creation. it seems to me that this is a perfect storm in the right direction. it almost is a rainbow after the storm. so you have more inventory proposed by the government, 3 million more units over the next four years. you have financial literacy, so a population where the consumer -- 70% of the economy is consumer spending. that can't be a bad thing. you have the federal home bank system that is providing a stimulus for the number one wave of wealth in this country, if

you provide certain criteria. no need to demonize the current institutional way of borrowing, because they wouldn't get this benefit. they wouldn't get the $25,000. they wouldn't get the subsidized mortgages and all that stuff. but wall street will give them other benefits. so now main street and wall street are on similar paths. and kelly, we've done this before. we have banked with fulton bank who is a mid-sized bank in pennsylvania, we did a billion dollars worth of mortgages. we did a $10,000 to $25,000 subsidized down payment assistance, they funded it. financial literacy education. in pennsylvania, some of these markets are expensive, and we got a billion dollars in mortgages for new homeowners, and it's working. the bank is doing well at the

same time. it's absolutely doable to do well and good at the same time. >> we love to bring a fresh idea. but i have heard it making the rounds on wall street here and there over the past decade or so. perhaps this will bring fresh attention. john hope bryant, thank you for being here. we'll see if wall street agrees at some point. >> thanks for your inspiration. >> i'm just throwing it out there. we'll see you again soon. thank you, sir. coming up, it's the worst buyout for banks since the great financial crisis. we're talking am elon musk's deal to take twitter private. and now your banalce sheets are paying the price. details are next.

♪♪ did you know that 96% of customers recommend the hartford? boy that's higher than most movie ratings. and those who switched to the aarp auto insurance program from the hartford? they saved hundreds. for the savings, benefits and best in class claims experience you deserve. make the switch today. to get your free quote call or click today. the buck's got your back. >> earning a degree doesn't have to mean starting from scratch. at university of maryland global campus, it means building your next success on the foundation of life experience. umgc values the successes you've already achieved. that's why you can earn up to 90 credits from prior learning

and life and job experience toward our bachelor's degree programs. no application fee if you apply by august 29 at umgc.edu. at aes, our energy solutions have powered the world forward for more than 40 years. and as demand continues to scale, so do our solutions. introducing maximo - our new ai-enabled solar robot. max makes construction faster, safer and more cost effective than ever before.

and with max doing the heavy lifting, even more people can join the team. solar energy is changing the world, aes is changing the world of solar. welcome back to "the exchange." i am kate rogers with your cnbc news update. the army and police missed chances to intervene and stop a reservist mass shooting at a main bowling alley and restaurant that left 18 people dead in october of 2023. the independent commission created by the state's governor released its report today and found local police failed to seize the gunman's weapons a month before the shooting, while the army ignored recommendations

to get the reservist psychiatric care and ensure weapons were removed from his home. one of the former minneapolis police officers convicted in the murder of george floyd has been released from prison. he was found guilty in 2022 of violating george floyd's civil rights. and bmw is recalling more than 720,000 vehicles over issues with the water pump. the pumps are not properly sealed, which could expos it to water and short circuits. back over to you, kelly. >> thank you very much. meantime, seven of the world's biggest banks, a multibillion dollar loan and one of the most infamous names in tech helped power the twitter takeover in 2022. but two years later, they are still on the hook. deidre bosa has more in today's "tech check." deidre? >> twitter, now x, is the worst deal in the musk universed purchased for $44 billion.

and it's struggled to retain advertisers. it's the banks holding the bag. according to new data, the twitter takeover now represents the worst buyout for banks since the 2008 financial crisis. the idea of doing this deal in the first place was do a deal that deepens the bank's relationships with one of the world's richest men and turn around and sell the loans or bonds to investors who might have more risk tolerance or believe that twitter, now x, would improve under musk. instead, banks have been unable to sell that debt, and home loans, as they're called, dents profitability for banks, increasing financial risk and reduces liquidity deals. it has hurt musk's own ability to raise capital for other deals. here's the key difference, these funds get ownership or equity in

exchange for financing, so they don't have to old onto that in the same way. very different way. they also don't report quarterly, so they don't have to mark down their investments every quarter like a bank might have to. >> deidre, we just got news as well. sheehan, the fashion site, is suing rival temu for an unlawful enterprise built on theft of trade secrets and fraud, as they seek to infiltrate the u.s. these two have -- you can argue they have taken share from amazon. what do you make of this latest sell, though? >> it's so interesting to see them battling with each other, right? these are chinese-owned e-commerce platforms that have made huge inroads with the american consumer by doing similar things. it looks like the business model is similar, you're selling cheap goods at a discount, in order to gain more scale and build habits

among american consumers. it's and to understand what is going on, because shein is not a public company. it's looking for an ipo in london, so we don't know what a lot of the financials look like. we know a lot more about temu, so it's interesting to see shein take on temu in this way before they're going to presumably release their financials. it could expos them to similar claims. >> interesting. i totally agree. it's an interesting strategy of trying to shine a light on someone else to say hey, we're legit, we're okay. >> yeah, and this question about the shein business model, so i wonder if this is the pot calling the celt black, but we don't know. shein is not public, so we don't

know a ton about its business model. >> it reminds me of tiktok. they might be hated for a lot of what is going on, but they're popular with consumers. deidre, thank you. appreciate it for now. deidre bosa out west. coming up, the dnc is underway out in chicago, with kamala harris making a surprise appearance last night. after the break, we'll look at what's on deck for the rest of the week and hear from an industry group that feels like they've been left behind by both candidates. back after this.

welcome back to "the exchange." day two now of the democratic national convention. joe biden spoke last night, along with former presidents barack obama and bill clinton. both are scheduled to speak this week. let's get out to chicago for that story. eomon? >> reporter: you mentioned the former presidents of the united states. it's striking the degree to which the democratic party is embracing nostalgia for its past

grades here. we saw a little bit of this last night with hillary clinton and the outpouring of love for joe biden, an outpouring of love necessarily came after he decided to step down and not before a lot of people noticed. but nonetheless, we will see barack obama and bill clinton, as you say, speaking later in the week, as you see the dnc speakers that are scheduled still to come here. a part of the reason why is they're embracing the economic legacy of those former democratic presidents, and part of the reason is the way the dow performed during those years. the dow performance under bill clinton and barack obama, up 255%, the dow was under bill clinton from '93 to '01. barack obama, up 138% from '09 to '17. those are big numbers, and that's why democrats feel like their pitch on the economy might resonate. but also it involves embracing the corporate tax rate of some of those predecessors. it was 35% under bill clinton and barack obama. it's a little tricky to measure,

because the base broadening that's happened since then means that the corporate rate is capturing different amounts of money in those different eras. but directionally speaking, this is a party that wants to raise corporate rates. we saw kamala harris embrace a 28% corporate tax rate just yesterday, and hakim jefferies, a democratic leader of the house of representatives, on cnbc earlier this morning saying that donald trump lowered the corporate rate too far when he pushed it down to 21%. here's what he said. >> there were many ceos who came to see democrats and republicans on the hill who suggested in order for america to be competitive with respect to our corporations, that we should lower that tax rate from 35% to somewhere around 24% or 25%. it was donald trump who decided to blow through the 28% number, blow through the 24% and 25% number that ceos were asking for

and drop it down to 21%. >> reporter: so kelly, so striking to me to see that here. this party embracing its past leaders. the republican party out in milwaukee, you didn't see any of their vice presidents there or their former presidents of the united states still living were not there. their previous nominees for the republican party also not there in milwaukee. this party is embracing its past in a way that the republican party simply didn't. the republican party very much making a break from that past and changing direction moving forward. fascinating to watch. >> thank you very much. this election season, we're checking in with different industry groups to see what they're looking for from the candidates. today, we are tackling the ag vote. they say both trump and harris are dropping the ball. joining us is matt carsons, head quartered in iowa. matt, great to have you here. welcome. >> thanks, kelly. glad to be here. >> i can't help but start on the commodity prices, which we watch

quite closely. what do you mean by that, what's going on, on that front? >> obviously, for our farmers that own our company here, that's the driver of the business. when we think about what's really important to our farmers, obviously some farmers have affiliations with political parties, and we have to set that aside. what's important here is three topics. one, how do we get the most for their goods, particularly exports when you have countries like china from 2022 that's down over 500% right now on exports from us to them. the grain side, particularly corn and soybeans, but right now on the corn side, it's near that 500% level. that's a problem. and there needs to be resolution of the farm bill topic, and farmers are anxious for that. and last is imports. how do we steward the imports coming into our country, having an impact on the farmers like used cooking oil that takes away

from the oils that come out of corn and soybeans. so we have to make sure that the farming community is watching the right things. >> i ponder this, the dynamics of our nation's agriculture. we have fewer farmers, but it feeds -- it couldn't be more important, and then we have the sort of iowa aspect of this where at least for the gop, having the early caucus there, it feels like it's a politically influential group. but maybe it's not. maybe you feel as if both sides are overlooking the issues that are important to you. >> well, i think definitely we need to hear more. i think we're all in agriculture, particularly the farmers, are interested in what do they have to say? as you know, kelly, things have changed a little bit here with where harris is at now versus trump. and we need to really listen closely, particularly in the way of exports, farm bill and imports, where they stand and what's going to be best for our

farmers. because you're right, it is important to every one of us in this country. agriculture, feeds, fuel, clothes, everyone. and we have to step up to our responsibility in making sure our voice is heard, and that' we are looking at the candidates to choose the best candidate, not the party, but the best candidate. >> do you want open global markets so that you have as big an export opportunity as possible or more of a nationalist system where we consume what we produce, and for lack of a better word, there are barriers to other sources oh of that? i'm curious what dynamic is preferable? >> we've got to have open export capabilities. there's no doubt. we see it in lack of corn numbers, with two months left from the reporting side, to have corn off to a country as large as china on a scale of about 500%. that's way too much, kelly. we have got to have ability for our farmers to get their goods

all over the globe and be able to deliver wherever needed, wherever is the best price. and that's an important part for our farmers. as it is all the way to the consumer, as well. we've got to protect what we need for our farmers and ensuring that we cannot only do that here in the u.s. but around the globe. >> quick final question, what would be the number one thing you could hear either candidate say this week or the weeks to come that tell you that's the number one issue for farmers or for our agricultural supply? >> i think it really comes down to exports and imports, who's going to open up the borders and allow those exports be where they need to be, and who is going to look at the import side and make sure things aren't coming in, like used cooking oil that's not used cooking oil and destroying markets here that are precious to our farmers and the whole ag community. >> matt, you may me think i need to do more research on what's been happening to this community. thanks for joining us. appreciate your time. >> thanks so much, kelly.

we've got a news alert on texas instruments. what's happening? >> kelly, activist investor elliott management reacting to texas instruments which it reduced its plans. elliott says in letter that we commends texas instruments on the capital allocation update. that long-term growth or free cash flow per share is the company's true north. this comes after elliott took a $2.5 billion stake in the company in may and put pressure to raise projections. the company is doing that, and shares are responding, up about 0.3 of 1%. this is texas instruments, which specializes in analog chips, kelly, for automotive and industrial. both sectors have been under pressure as of late. >> thank you very much. coming up, shares of the chinese online discounter

getting hammered. on pace for its worst day since 2021. shares are down 16%, and we'll check on some of the day's other big movers, next.

welcome back to "the exchange." we started with some gains, but we quickly turned into declines here across the board, coming off an eight-day win streak for the s&p and nasdaq. so that would be in jeopardy as of today. the russell remains the worst performer, down 1.3% today, when it's supposed to be the biggest beneficiary interest rates falling. eli lilly hitting an all-time high after new data shows its weight loss drug reduces the risk of developing type ii diabetes. the active ingredient and its diabetes drug, here's what the ceo said this morning on cnbc.

>> we first had phase one data in 2016. so people are getting excited about phase one data for these other companies, some with 16 or 20 patients. that is where we were exactly eight years ago. so it's a long time, and a lot of effort to create, approve effectiveness, and then scale a product, which is where we are right now. >> shares up 2% today. he mentioned that data which came out in 2015. since then, the shares are up 1,000%, and they have have tripled over the past two years. as for today's action, the gain seems to come at the expense of medical device manufacturers. down 7%. even abbott labs, which makes glucose monitors is lower. all of these could be sup planted to some extent by the

success of the drug. m mersk, and canada rail companies faces a potential strike as soon as thursday. we'll big do the impact this could have after this. one thing we know is true: no matter race, gender, ethnicity... the need to screen when due... for colon cancer's a priority. indeed! everyone 45+ at average risk should screen for colon cancer. these folks are getting it done at home with me, cologuard. cologuard is a one-of-a-kind way to screen for colon cancer that's effective and non-invasive. it's for people 45+ at average risk, not high risk. false positive and negative results may occur. ask your provider for cologuard. i did it my way.

since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise]

ryan t. writes, "moving is stressful. can you help me take one thing off of my to do list?” ugh, moving's the worst. with xfinity, you can transfer your internet in just a few taps. just a few easy moves. did somebody say “easy moves”? ♪ ♪ oh no. no, i was talking about moving your internet. this will move the internet. ♪ ♪ ooh, ooh. -let's keep it professional. professionrs! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app. bring on the good stuff.

♪ shipping giant is facing work stoppages on both land and sea. it stopped accepting certain canada-bound cargo as that country is less than 48 hours away from a rail strike and u.s. port workers are threatening to strike next month. if that happens, a one-week shutdown could take six weeks to recover from. joining us to discuss and the pricing risks are lisa deknight. good to see you, lisa. and we are not out of the woods on all these issues that many seem to associate more with the pandemic era. why not? >> that is such an interesting point. it's another moment for us to kind of take a step back and realize the critical importance of some of these infrastructure and freight, transport modalities. it is very clear that a strike

is likely to happen this week with canadian rail firms. and i would say the good news is that history shows these canadian rail strikes are relatively short lived. that being said, there are cascading impacts for north american manufacturing sectors, for agra food, these canadian rail firms, for example, have a significant impact on grain shipments and especially as we come up on a harvest season. critical crops can't just sit around. >> it's interesting we were just having this discussion with a former from the iowa area. so what are the not gone effects we should expect beyond maybe grains, like you said, that industry in particular. what else in terms of the u.s. impact, the way it might affect consumers as well as businesses? >> well, luckily, as i said, these are typically -- even in recent history, canadian rail strikes are typically short lived. so i anticipate the impact will be much more acute in canada and

less so in the united states. that being said, it really depends on the duration of during which a strike would go on. if a strike were to last more than a few days, which is what recent history has shown, that could have a lot of implications on a wide variety of industries, manufacturers could have to idle plants or furlough employees if this does not come to a quick arrangement. >> sure. >> that being said, i think there's a lot of encouraging history and -- there's a lot of incentive to not have this rage on. >> as for the u.s. one, which it could be when their contract expires next month, i think a lot of retailers and suppliers have perhaps anticipated the strike coming and then front loading a lot of their deliveries for the back to school and even for the holiday seasons. is that right? >> yes. so we're now kind of bringing in the whole port issue. so, already, you know, this

canadian rail strike issue has led to shippers diverting sea born cargo for u.s. consumers to non-canadian ports because of the rail issues but rather to ports like seattle or southern california, which is already causing a little bit of congestion on the rail lines in seattle, for example. that being said, we are experiencing this within this period where we're facing another potential labor crisis next month, as you say, when the east and gulf coast port union contract expires at the end of the month. and that rhetoric is sounding potentially like there could be a strike there as well. >> yeah. >> it is causing a lot of this goods -- a lot of these goods to be brought in ahead of time leading to quite a heavy peak shipping season right now. >> what is the net effect on pricing? is that where the rubber hits the road or is it likely to be in some kinds of delays? it has to come down, i imagine,

to the kinds of markups we experienced more couple years ago? >> well, luckily we have around four years of history behind us now. and industrial occupiers and shippers have taken great lessons from the past pour years and have diversified their industrial operations. we now have more warehouse and distribution notes in more strategic markets and gateways across the country. and, you know, wider variety of different transport modes. industrial occupiers really need these levers of optionalty to pull when something like this happens. so, i think the net impact will be less severe on the, let's say, inflation or prices, than it would have been let's say four years ago. >> absolutely. we can only hope while it all gets resolved smoothly there will not be a not gone inflationary period to deal with as well. lisa thank you very much. lisa denight with newmark.

that's it for "the exchange." "power lunch" is up next. i'll see you on the other side of this break. it's time 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 sure, i'm a paid actor,

and this is not a real company, but there is no way to fake how upwork can help your business. search talent all over the world with over 10,000 skills you may not have in house. more than 30% of the fortune 500 use upwork because this is how we work now. >> no application fee if you apply by august 29 at university of maryland global campus, offering online and hybrid courses and lifetime career services. learn about our more than 135 degrees and certificates at umgc.edu.

♪ welcome to "power lunch." alongside kelly evans, i'm jon fortt. stocks are slightly lower right now, that's jeopardizing the continuation of an eight-day winning streak for both the nasdaq and the s&p 500. but the real test for this market will be later this week when we hear from fed chair je