♪ 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 jed

power in jackson hole. >> 10:00 a.m. the crypto community hosting its big event at the four seasons there. we'll discuss the big issues on their agenda but also how did wyoming become the center of their financial world for this week, at least. first a check on the markets, though, stocks are lower. boeing dragging dow as the 10-year of the new ceo is starting with more issues. the russell is down more than 1% as well. we'll keep an eye on that. back to boeing, it has to pause test flights of a 777 x fleet after damage to a part. ordering inspection of the 787 dreamliner. netflix near all-time highs. positive momentum for app sales. let's begin with the broader market as stocks pull back following an eight-session rally, coming ahead of jay powell's comments to jackson hole, expected to signal what the fed will do in september. for more on what could derail

this rally, let's bring in mike santoli. mike, unusual. >> reporter: little bit, jon. yeah, a lot of things have been unusual in the past three weeks or so, in terms of, you know, the pace and angle of the decline into august 5th. then the recovery. both being broad and very rapid. in fact, the today's high, the s&p 500, was up just about 10% from the intraday low two weeks earlier. so it shows you that we snapped back in a hurry. there was an assessment the gross scare after that jobs report was overstated. we had a bit of a positioning shock with the unwind of carry traits. whatever we want to call it. now, though, we are back to a point where we have to ask are we back to the highest valuations reset pretty close to where they were before and what will it take out of powell or the economic numbers to sustain any up trend? the longer term trends were never disturbed. that was not the issue. small caps finally have gotten

their day in the last month or so. the big growth stocks lagged on the way up here. there's more room to regain semiconducts towards the highs. are we seeing more of a defensive shift. 2-year treasury yield lifted almost no. bond market is telling the fed, it's time. huge spread between the 2-year yield and fed's fund rate. dollar very week today, too. that seems to be the signal of the market as it sets its feet ahead of jackson hole. >> mike, seems to be a hope for a lot of cutting. initially just in september, but now some signal of more than that. but i can't figure out why the fed would want to do that here. >> they don't. i don't think that they actually wish to do that. i actually don't even think that investors, if they're honest about what it would take would want to see a really aggressive pace of cutting. what you're seeing in terms of the pricing of the fed's funds futures is when we know the next

move is down and probably soon, the direction of surprise is down even more and faster as opposed to being steadier, higher. i do think that's what you're seeing in the feds funds future. slow, steady, deliberate easing i think has been element of the bullish case not the bear one. the major averages are down today. mike mentioned first negative day for the dow in six. so is the recent rally sustainable to the fall? should we expect more declines. let's ask cnbc contributor, jeffrey, out at the dnc in chicago. dave, i don't know if there's anything there that changes your view on the world? e. >> i think there's a lot out here, kelly. it's a big big shift for us to start thinking about the harris agenda is. we've seen little bits of it come out on the economic side over the last few weeks and a few more significant ones in the

last week or so and we're all trying to digest that, i think. trying to understand what the idea of price gouging and stopping price gouging is. we're trying to understand her tax policies, how she's thinking about monetary policy. and most importantly regulation, which we haven't got a lot of clues on. i'm eager to get as much information as i can to help our clients navigate the next 80, 90 days of figuring out -- 80 days now of what the selection risk really means for our portfolios. it's a tricky time. that may be it, kelly. this is more of the volatility that we're seeing is just people getting a little nervous around what will happen november 5th. >> sure. i think of you as able to distill all that churn into a very simple trading strategy, one that often can sustain itself for years at a time. to leave that as a tease. in the meantime, i want to ask you about the rather pro seic issue of corporate tax rates. as she goes to 28%, gensler is treasury secretary, is there anything in that would

dramatically affect stock performance one way or the other? >> i certainly think so. i think gensler treasury secretary is a big deal. i think the regulation side as we argued in our notes to our clients is the biggest difference between a trump win and a harris win. deregulation or re-regulation, more regulation or status quo. so to me that's really where the market is will key off of. i go back to 2017, '18 and '19, what trump policies drove the economic landscape, i come back to regulation as being a big driver of almost everything that happened. i don't think tariffs played that big of a role. i don't think fiscal was as important as people thought it was going to be. we didn't see big rises in the debt to gdp ratio, all that inflation from tariffs that everybody thought was going to happen. in fact, inflation was stable to lower those years. so, i really think that the market keyed off of deregulation and the market will once again do that on a trump win.

and what we have to learn from the harris administration and the economic advisers that she has is are we actually maybe preparing for even more regulation under a harris win than what we had under biden. i did think it was interesting we didn't hear the word bidenomics first -- i don't think i heard it once actually yesterday at the dnc. so there is a distancing and we really got to figure out what -- you have to help me come up the right word what harrisenomics. we need to understand what that is. i'm beginning to think it's really not bidenomics. >> well, but dave, we're also in a very different overall economic environment than in the 20-teens, aren't we? we're not in a low rate environment in the same way during the trump administration, there was a lot of spending and not bringing in as much revenue perhaps meant something different than it would now. should investors really be

thinking of the the next four years in terms of how we looked at these things in the last decade? or are the demands and challenges just very different? >> reporter: yeah, jon. that's a really important point, particularly on the rate side. we didn't have the interest expense on the debt. that's a significant part of the expenditure now and that wasn't an expenditure under the trump administration. although, rates were rising, they were peaking at 2.5 not 5.25 and back down to 1.75 by 2019. so i don't think -- i think you're right to say there were lots of differences on the budgetary side we need to think about. but rates are coming down, as we all know and likely to continue to come down. in the next administration, which ever one that is. but again, i don't -- i really step back and i look at both harris presidency and trump presidency and think both of these administrations will be reasonably profligate when it comes to fiscal policy.

i don't think they're big cutters of spending in any way, shape or form. maybe one is more of a tax increase than another, but you know, fiscal profly gasy is here to say and trade policies will largely be the same under both. very genuine to say that the biden administration or harris administration would be that different on trade than what trump is proposing. >> i think -- >> he has a different tact of achieving it. >> it's exactly right, david. absolutely. my question to you will the market permit that prof ligation. we would have to cut spending by a third to balance the budget to keep the debt piling from growing. if the market is okay with this, if investors shrug this off, fine, it can all keep going. is there a point to which they don't? >> reporter: i think we all kind of look back on those reinhart and trigger numbers that everybody was excited about years ago. they never really happened.

we have seen the japanese take their debt to gdp ratio 250% and now the bank of japan owns 55, 60% of the entire government bond market. the outlook isn't going to be rates or problems with debt or debt sustainability, come back to currency and whether people trust the currency. what we have seen with the yen weakening and volatility of the yen, people questioning that long-term in japan and that may be an issue for the u.s. dollar in the long run. i don't think that's today's issue and i don't think that's the issue for the next few years. >> david, how do you feel -- >> maybe even longer. >> how do you feel the prospect of a less independent fed? >> reporter: great question. been thinking about it a lot. my off the cuff answer to you is you'll remember some of my comments from shows gone by, i don't think we have an independent fed. i've always said that.

i've always harkened back to the bill dudley article of 2019 trying to argue that the fed should be raising rates when they were cutting rates. in order to create a recession to make sure that donald trump was likely to lose the election. and that would be consistent with a dual mandate. i thought that was one of the most egregious political moves of any exor current fed employee that i've seen in my career, but it was consistent with what i believe. there is a lot of political -- there is a political underbelly to the fed. it's a bit ugly. nobody likes to talk about it. nobody likes when i talk about it, so i try not to that you can about it but you brought it up. i think the bottom line is the trump folks are talking about a less independent fed, they're talking about something that's to begin with. they're just bringing it to the forefront. let's see where their proposals

go. i don't think he's talking about something as aggressive about what the bank of england and uk treasury used to have which was a vote in the uk treasury on the rate side of the equation. which by the way served the british economy pretty well for a very long time. only recently they had independent. i wouldn't get too bent out of shape. i think understanding -- what i try to understand our clients at jeffries, help them understand that the fed's independence, as much as we like to think about it in a pure sense, it's not pure. there are lots of reasons why political decision making enter into what happens around that fomc table. and it's not something that gets talked about, not something that's advertised, but it's there. and maybe it's healthy to have that discussion. larry somers brought that up a while back. >> at the same time, in 2019 they ultimately ended up cutting rates. what dudley said -- we know they're a political entity and want to have good relationships, perceived well, some level of truly trying to generate one

outcome or the other. they all get ploed if their perceived to be doing a good job. the biggest benefit of an independent fed is quite simply the value we all place on and the academia and the financial markets they all place this major premium on a successful fed. so dudley might have said that, that's not what they ended up doing at the time. >> reporter: no, no. i ended up cutting my hair on tv on july 31st when they did cuts. i was happy about that. look, i think larry somers actually said it right, not often i agree with larry, but i liked his thinking on fed indpebs when he went off the rails a while back. you don't really want one government agency moving against another government agency. you don't want to be stimulating here and removing accommodation on the other side. so some coordination, some thinking about what is the overall goal in government policies in general, what are we trying to achieve here? and trying to do that in a

somewhat benevolent way. you'll never do that because politics is not benevolent. i will argue there is some role for thinking about coordinating somewhat. >> you might even go a step further -- >> the problem again -- >> you might go a step further and say it might have benefitted the biden administration the fed was tightening so they could enact the fiscal plans they wanted to enact. you know what i'm saying, that type of coordination is more nefarious. >> reporter: well, one could argue if the fed were tighter earlier and inflation didn't go up as much that might have benefitted because the biden administration and now harris because of the legacy are suffering from the fact that we had accumulative rise of the cpi close to 20% under this administration which is three times what it was under obama one, two and trump one. so, again, there's lots of ways to kind of go back and think about it. i'm going to answer jon's question very simply by saying i don't get worried as much as

many people might in the market about hearing that the fed's independence is going to be somewhat reduced or questioned or brought to the forefront in a discussion. i think it's already there in the underbelly and maybe bringing to the forefront is actually a healthy thing, but that's going to probably not play well with lots of my ex-fed colleagues. that said, i think it is there. so we can talk about it. i don't want to see -- what i really don't want to see -- that's what i said. i like the larry somers version of this more than the bill dudley version. what i don't want to see is the arthur burns style or even lyndon johnson style moves that took place with their respective fed chairs, which were muscling the fed to do something in the short term that was negative for anchoring long run inflation expectations in order to benefit

the short run economic outcome for political purposes. >> yeah. >> that's what we would like to avoid at all costs because the anchoring of long run inflation expectations is still the number one goal. and whether that has a group of people inside the administration helping think about how to do that, i'm not averse to that. i think that's the goal. let's make sure we stick to the goal posts and hit that goal and we've done it. kudos to jay for having been one of the best at making sure that inflation expectations stayed anchored during one of the greatest inflation shocks of our careers. >> relatively anchored. we'll save that for another time. dave, thank you. we really, really appreciate it playing along as we talk about all of these various topics joining us from the dnc as well. >> well, bond yields falling today along with stocks. the bond market also very patiently waiting to hear from chair powell at jackson hole. let's get to rick santelli in chicago, also in chicago for more. rick? >> reporter: yes, jon. boy, i'll tell you, nothing like a dog whistle issue.

all you have to do is say is the fed independent? what about the independence of the fed and everybody's hair lights on fire. what isn't lighting on fire are yields to the upside. look at intraday of 10s. and remember, 8:30 eastern philly fed nonmanufacturing was released. it was horrible. minus 25.1. the worst month over month change since december of 2020. look at the way the market dropped. now if you add in yesterday's market, which had a low yield of 385, the minute that philly fed nonmanufacturing pushed the yields below yesterday's, everything accelerated. matter of fact, every maturity from 2s out to 30s is trading under yesterday's low yields. so it's a momentum trade at the moment. and if you open the chart up to june, you could clearly see that we are very close in 10s and close under about 379ish would make it a lowest yield close

going all the way back to the summer of '22 -- excuse me, summer of '23. we really want to pay close attention to current levels or slightly lower. finally, the dollar index is running into trouble, obviously following rates lower. but the pound versus the dollar, it's hovering at a 13-month high and it underscores pretty much every currency around the globe is doing better than the dollar. and this particular case, it alongs like the amount of easing the bank of england may do will outpace the amount of easing by the end of the year that the fed will do, at least what's priced into the markets. kelly, jon, back to you. >> all right, rick, thanks. and from a bonds and currencies back to stocks, we're also very close to break even on the s&p and the dow at the moment. still to come, when you hear jackson hole, you think of the fed. but there's another summit there this year. it's focussed on crypto. we'll go there live next. ♪

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bring on the good stuff. ♪ the fed isn't the only group meeting in jackson hole this week. a big crypto summit is taking place out at the four seasons. and we're live in jackson. i love these dualing jackson hole summits. just so wonderful. what's the big issue being discussed where you are? welcome. >> reporter: thank you, kelly. definitely the future of crypto. i'll tell you one thing we're definitely going to be hearing about in a little bit is the wyoming stable token. the state is creating its own stable coin, the type of crypto currency that's supposed to keep parody with its underlying asset, in this case that would be the u.s. dollar. and the goal is to give individuals and businesses a faster and cheaper way to trance act while creating a new revenue stream for the state. i'm told this is a response to the lack of action by the federal reserve, at least in

part, in implementing a central bank digital currency, also known as cbdc. so the commission on the wyoming stable token here is leading this and hoping it will eventually become the model for a digitized dollar at the federal level. it's interesting right now, though, because crypto investing has become, as you know, more institutionalized ever with bitcoin and ether etfs. the industry is having an existential crisis, aside from bitcoin's isolated success this year, in large part thanks to etfs the, rest of crypto hasn't really come back to life yet. seeing that everything rally that the space is so conditioned to see right after the big bitcoin rally and crypto, of course, was always supposed to be used for more than speculating on asset prices. so wyoming, which is so proud of its history of pushing the boundaries of financial innovation, it creates the llc and has passed about 30 pieces of crypto legislation since 2019 to encourage investors and businesses here is very eager to

push this space into its next phase of growth. >> all right. tanaya, thanks. for more on the other conference taking place in jackson hole and to explain just how wyoming make a main crypto hub in the u.s., let's bring in kaitlyn long the founder and ceo of custodia bank and fundamental proponent of crypto in the state. it's good to see you kaitlyn. so, i feel like crypto is in a very different place than it was two or three years ago because this idea that the dollar is going down the tubes and that instability would cause people to run from it just doesn't seem to hold as much as it did back then. do you disagree? >> definitely agree. the two ecosystems need to coexist. and i believe will coexist for quite some time. >> so why should i care? if i'm not a person whose invested in crypto already, if i don't have a dog in the fight,

why should i care as a participant in the economy? i'm not going to buy stuff with crypto any time soon. it doesn't feel like. so, what's in it for me? >> well, in the u.s. you might not be buying much with crypto any time soon, but that's not true about the rest of the world. bitcoin is different things to different people. and the most important aspect of bitcoin is that no one controls it. it's just code maintained by engineers in an open source decentralized manner. and it cannot be diluted by the arbitrary whims of a control p at a central bank. >> so, we've had a lot of conversation lately about a.i., the meta verse faded away. it's sort of competing, i think, crypto, if i shouldn't care in the u.s., why should i as an investor look at it beyond a space for speculation and some

risk? >> well, in the u.s. that is primarily what it is right now. i'll concede that. it is about an investment. especially that's true with the etfs, with the wire houses now starting to offer the bitcoin and ether etfs, which is just a wrapper around the actual underlying asset. but again, it is also a payment system. it's so interesting someone who has been in bitcoin for this entire -- since 2012, been through three cycles, bitcoin became different things. in the beginning it was a payment system. and it has evolved in the u.s. because of transaction costs to be a high value transfer system which is what makes it an investment. and of course, because it cannot be diluted, it is digital gold. >> right. >> that's probably the best analogy. >> bringing it all together, what can wyoming do as a petri dish for crypto that other places can't? >> well, wyoming has done a lot

of things. the first and most important thing it did was to define the legal status of it as property. and to define the rights and obligations of party stos a transaction involving it so that if there is dispute about a transaction, a judge in the court system knows how to address that. sounds boring, but it's foundational and like so many of the other things that today i mentioned that wyoming has done in its past, creating the llc, giving women the right to vote, that went nationwide and the same thing is happening here. wyoming's laws are going nationwide, especially when we're seeing such anti-crypto policy coming out of those in control in washington, d.c. right now. >> okay. that might change, though. we'll see. kaitlyn long, bank founder and ceo. thank you for joining us. >> thank you. after the break, a day late and a dollar short. a long time bear is turning

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welcome back to "power lunch." the dow briefly turned positive just a moment ago. could have been on some headlines from the fed within the past half hour or so talking about the potential for rate cuts. nevertheless, couldn't hold those gains. still looking to break an eight-day gain streak for the nasdaq and s&p. one technician is looking at the chart patterns for the u.s. dollar and is seeing enough evidence to switch his view from dollar bull to dollar bear. joining us is tom fitzpatrick, global market insights for r.j. o'brien. good to have you. do tell. change of heart here? >> absolutely, kelly. thanks for having me. i think you know, certainly over the course of the last year the dollar has held in reasonably well. hasn't done an awful lot. but as a consequence of being the best house on a bad street. but we're beginning to see signs

more technically and terms of the backdrop that consolidation may be breaking. we broken on the dollar index, taking us out of the 12-month son consolidation and very low levels of volatility normally a precursor after consolidation towards a trending move. and the reason we think that trending move could be to the downside, there are a couple of things. as the saying goes -- we look at periods in particular 1990, 2000, and 2007 as periods that have similarities to today. 1990 was very much japan, the nikkei getting to 40,000 and collapsing. dollar yen getting to 1.60 and collapsing. bank of japan was hiking, fed was easing. 2000 was fed holding rates very high and the dot com bubble and 2007 ultimately became the financial crisis but a period where the fed was behind the

curve. and during that period, that was the breakout in terms of the dollar. and we saw, as we came out of the summer of all of those years, in fact, we saw the dollar begin to weaken and overall saw the dollar lose about 10% plus over the following four to six months. we seem to be getting set up for something similar again. >> right. i think in the short-term, at least that would be a boost for corporate profits, potentially for stock prices, for commodity prices, for gold. there's a lot of ramifications. but when i look at your long-term chart, i notice that every time we had one of these moves, the next year's long trend is there doesn't seem to follow a pattern. sometimes it was down. sometimes it was up. i don't know if you have a feel for what we might be looking at here at this juncture. >> so, correctly as you point out, you look back over history and obviously the dollar index is an imperfect index, made up of mainly european currencies.

58% the euro. you look at a long-term chart, it reverts a lot because fx is a relative trade. and we have seen the levels we see today on many times in the past. and there are while, yes, it absolutely seems to what we would see over the course of the next four to six months, it's by no means a suggestion that we're going into significant multi-year decline in terms of the u.s. dollar. not saying it's impossible that that could happen, but i think we have to see a lot of more developments in economics and policy and interest rates and interest rate differentials far larger than anything at this point at least has been suggested to think of structural load. >> for now a 10% move lower is what you think could be in the cards here and we'll keep an eye on that. it's been a while since we have been consistently in the 90s. tom, thanks. we appreciate it. tom fitzpatrick with r.j.

o'brien. and we'll get insights into china's grim economic situation as those continue to emerge. youth unemployment above 17%. that story when "power lunch" returns. (♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going?

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the comcast business 5-year price lock guarantee. switch today for a limited tim. welcome back to "power lunch." shares of chinese electric vehicle makers are falling today as the eu announces changes in tariffs on evs made in china. eunice yoon is live in beijing for us. eunice? >> reporter: thanks, jon. well, that's because of the most meaningful reduction is for tesla. the eu revised its tariffs on china-made evs as part of a draft finding of its investigation into whether the chinese government subsidizes the ev industry. that tariff dropped from 2307b9 8% 9%.

you expect negotiations between the europeans and the chinese up until october 30th when the eu trading bloc will vote on those confirmed tariffs. the duty applies for five years and then can be renewed. so far there hasn't been any official response from the chinese government but the state broadcaster cctv tonight was accusing the eu of going its own way on this decision. chinese business groups have also -- that are full of state-backed firms say they firmly oppose what they call this unfair ruling and they deny the chinese ev industry benefits from state subsidies and electro mechanics association argues that this decision will, quote, backfire and deter chinese investment into the eu because chinese companies, they say, will be too nervous about the risks of investing there. >> okay. what about youth unemployment there? had been a 20-plus percent number out and then i believe china sort of revised the

calculation, but still 17% isn't great. >> reporter: no, no. so, last summer the chinese government saw youth unemployment here hit 21.3%. that was a record. then the government decided to suspend the number. they said it was because they wanted to put in place a new calculation method that would take out the people who are going to school. so this new number has now dropped after being suspended for about six months. and instead, it's been creeping up. so in june it was 13.2%. now it's 17.1%. the authorities say that this is because it's graduation season. but a lot of folks have been talking about how this number is still going up even though the government has been changing the calculation. jon? >> it's amazing. you think if they're going to mess with it, just make it lower. no. eunice, thank you very much for bringing that to us. it is a glimpse into kind of the

much bigger story there for sure. eunice yoon saying up quite late in beijing. let's get to kate rogers for a cnbc news update. robert f. kennedy running mate suggested the independent campaign could join forces with donald trump. nicole shanahan made the comment in a new interview released today. the campaign is considering remaining in the contest to try to win more than 5% popular vote. u.s. health officials say the number of babies born fell in 2023 from the year before, hitting a new low. the decline resumes a decades long fall in the u.s. birthrate after a slight uptick during the early years of the covid-19 pandemic. there were 3.6 million reported births last year, down 2% from 2022. and alex cooper reportedly struck a multimillion dollar deal to move her popular podcast "call her daddy" and unwell podcast network from spotify to

sir-iusxm. it will roll out in 2025. according to "variety" that deal could be up to worth $125 million. kelly, back over to you. >> kate, thank you very much. kate rogers. meantime, data shows eli lilly's weight loss drug also slashes diabetes risk. you should see the moves in stocks because of this. we'll trade that and other names in three stock lunch after this. tamra, izzy and emma... they respond to emails with phone-calls... and they don't "circle back" they're already there. they wear business sneakers and pad their keyboards with something that makes their clickety- clacking... clickety-clackier. but no one loves logistics as much as they do.

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♪ welcome back to "power lunch." time for a deluxe three stock lunch. we'll get the stories on three stocks in the news then get trading advice on each. our trader today is victoria green, cnbc contributor and cio after g square private wealth. first off, lowe's. let's turn to melissa for more. >> hi, jon. shares of lowe's are down slightly this afternoon after the home improvement retailer reported mixed results and cut

its full-year forecast. the company beat wall street expectations on revenues. ceo told me today that low housing turnover and high mortgage rates hurt demand. inflation remains high. big-ticket purchases are being delayed as customers sit back and wait for interest rates to fall. but he added that the company has not seen a dramatic shift one way or another in overall consumer sentiment. despite a tougher backdrop, low's has a few factors that may help it in the future. 90% its customers are in home homeowners. u.s. housing stock is ageing. millennials are forming households and baby boomers are choosing to age in place driving demand for repairs and projects. lowe's a is also attracting more business from contractors and other home professionals. those pros the end to be steadier shoppers and bigger spenders, jon. >> thank you, melissa. victoria, can you buy lowes here? >> no, it's a sale for me.

they tend to slow down in the second half of the year regardless of what the consumer is doing because people aren't remodelling their homes as much or moving as much. november and december is not the time that people remodel their homes or that people pick up and start to move. the problem is that people aren't spending. it's not just about the homeownership market. it's about that diy and it got pulled forward during covid. everybody remodelled. everybody was repainting. everybody was having -- redoing cabinets and flooring and the whole diy boom pulled all that revenue forward. 2019, 2020, 2021. now they're done with the diy. that's what's killing them. yes, they're trying to grow their pro market share, only 20, 25% of their revenues and just stuck. the only thing that's working is in growing is their hard line segment which is the gardening and the patio furniture and things that people are still spending money on. i don't think you're in a trough year yet. not just about the consumer, about what the consumer is spending on. they're not spending on big ticket items. >> well, let's see if they're spending it on big ticket weight

loss drugs. eli lilly is up 3% today. angelica peoples is here with that story. >> lilly says they cut the risk of diabetes by 94%. this three-year study is showing the drug can help people with prediabetes and stop them from getting worse. one in three americans have prediabetes. there aren't any drugs to treat it. this could open up another way to use tirzepatide. >> not only do you lose weight, but that when you do, on this medicine, it converts to health benefit. this is our fourth study this year that does such a thing. here now we have pre-diabetes not turning into diabetes. last month, congestive heart failure. in april, we had sleep apnea. >> rick is telling us the company plans to talk to regulators about next steps.

the study also showing people kept the weight off for three years. that could help support long-term use of the drug. lily is trying to convince this drug is worth paying for over the long run and this is another way to do that, kelly. >> indeed it would be. angelica, thanks. let's see if victoria thinks this is a buy after all the gains we already had. >> absolutely. i think it's a buy here. easily 1,000 dollar stock. you would have want to buy at 800, buy at 900 and still buy even if it hits 1,000. look f you get prediabetic and get insured for that, not only treating diabetes but reducing the risk of diabetes, ceo said you're eating 800 less calories, obviously helps with the weight loss, keeping the weight off. get diabetes, heart related issues huge market share and pushing more internationally. for me this is a generational long-term hold. you want to exposure to the glp 1 medicine. lilly is number one in that space right now. brandon gomez joins us now

with amer sports. >> one retailer bucking the trend at least in china reporting strong revenue up 16s for for q2. raising guidance for the year now projecting revenue growth between 15 to 17% prior guidance was around the mid teens. worth noting mid-teens. q3 guidance did come in weaker than expected so investors should keep alert. clearly, focused on the raise this morning as the stock pops. it's been a disappointment since its debut in february. challenges in wholesale, especially in the u.s. with companies like dick's sporting goods where sales have been soft. ceos of their brand on the call this morning saying it's early innings and the sports portfolio is far from reaching penetration potential in all locations. talking about growth in the americas because china has been a bright spot for the company. outperforming nike overseas which reported double digit declines in foot traffic. they reported a growth year over

year in that market. >> thanks. victoria, should investors play ball with amer sports? >> i like it. it's a small cap, but a potential flier on a new up and coming brand. could it be the next hot thing? they have new brands. they have their heritage brands. they have a good foothold on the dtc market. it's fantastic what they're doing in china. they're hitting young, female, and luxury in china. it's a little aggressive, might be volatile. could see this retesting the 17 highs. for me it's a buy. >> wilson. all right. >> i appreciate that. you can always hear us on our podcast for more content like this. follow and listen to "power lunch" wherever you go on any platform, and we'll be right back.

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welcome back. two minutes left in the show. several more stories you need to know. disney agreeing to allow a wrongful death lawsuit in florida to be decided in court, reversing course after early arguing the case belongs in arbitration because the man involved signed up for a disney plus streaming trial in 2019. the man filed the lawsuit when his wife died last year from allergic reaction after a meal in the disney spring shopping complex in orlando. disney says it is now waiving its right to arbitration so the matter can proceed in court. >> what did the subscription to disney plus have to do with it? >> apparently there was a clause in signing up for the trial that said anything issues related to the company needed to be decided in arbitration, which seems crazy to me. >> interesting. meerl, harley davidson is dropping some of its dei efforts after facing backlash online. in a statement on x, the motorcycle giant says it stopped consulting the human rights

campaign's metric for treatment of lgbtq plus employees and sponsorship decisions will focus on retaining its loyal riding community. >> i don't understand why companies start policies if they don't really believe in them. either stand behind what your policy is or don't sign up for it in the first place. >> they onthink they should, especially in this case. now that the pendulum has swung in many ways the other way, they're being targeted by people saying do you really believe this? >> the $13 billion elon musk borrowed to buy twitter has turned into the worst merger financial deal since the financial crisis. that's according to data from pitch book lcd. the twitter loans have been stuck on the balance sheets of banks longer than every similar unsold deal since 2008. morgan stanley, b of a and other banks say they haven't been able to unload the debt because of x's weak financial performance. >> it's affecting what bankers are using because this is on

their books so to speak. in this case, they got frustrated or concerned with the loans after his comments about advertisers and go f yourself, a sign of perhaps this business model isn't going to pan out in the very near term. >> thanks for watching "power lunch." tune in to overtime today when we weigh in on everything going too far too fast perhaps. >> "closing bell" starts now. >> thanks so much. welcome to "closing bell." i'm scott wapner live from post nine. this make or break hour begins with streaking stock. we have a little work to do over this final stretch, for nine up days in a row, we'll see how things settle out. take a look at the scorecard with 60 minutes to go. the major averages have been low since the start, taking a bit of a breather ahead of the fed powwow out in jackson hole later this week. a more defensive bent today with staples and health care two of the better