>> shannon? >> joe mentioned it earlier, industrials. our view is that we'll see this global industrial production inflection higher. there's a real meaningful need for infrastructure build outside of a particular bill, so that's where we're positioned. >> joe? >> nu holdings. >> thanks, everybody. i'll see you on "closing bell." "the exchange" starts now. ♪ ♪ thank you, scott. welcome to "the exchange." i'm kelly evans. here's what's coming up this hour. an equity rally that could put the dow over 47,000 in the next 12 to 18 months. that's how bullish our strategist is on stocks in the long-term. but for now he expects more volatility. he's here to explain and tell us when to expect the bigger gains. plus, the third day of the dnc. harris' running mate, tim walz, set to speak tonight. we'll go live to chicago for the latest and highlight one of the key areas one of the democratic agenda doesn't address.

shares of an infrastructure name are up 9% this year and nearly 800% since going public a decade ago today. we'll reveal it and talk to the ceo about what the recent increase means for his bottom line. that's all coming up. let's start with today's big payrolls revision. we learned the economy added 818,000 fewer jobs than we originally thought, between april of 2023 and march of this year. stocks are higher, yields are lower on that news. requires a bit of explanation. bob is here to dig into the numbers and today's market response. neil is standing by on how to position. and some of that uncertainty leading bank of america to downgrade american express. their analyst is here to discuss his call. welcome to all of you. bob, kick things off for us. what do these revisions mean? >> well, revisions downward make the fed potentially more likely to cut. i think that's the reason we got a very short, knee jerk reaction in the markets.

that didn't last long. it's overall pretty good for the markets. 2-1 advancing to declining stocks. this is how the s&p 500 and nasdaq are moving here. take a look here. dow is up nicely here, 60 points. we're not far from a new high on the s&p 500. dow has been flattish all day. nasdaq up 0.2%. if you look at american express, here's the problem for the dow right now. it's weighing it down here. there was a downgrade over bank of america, limited upside due to slower growth, more caution from retailers and travel companies. look at this chart, up 30% this year. it's the third best performer in the dow this year after walmart and 3m. a as far as mega cap tech goes, it's a mixed day. apple and microsoft have been down most of the day. two sectors i want to highlight with notable movement. first off, consumer staples, retail. lots of new highs today in consumer staples.

they've been doing very well over the last month. phillip morris, colgate, campbell's, coke, kimberly clark, proctor and gamble was at a new high. so keep an eye on this group here. the other one is the retailers. target's numbers, same-store sales growth, a little better than expected, up 13%. but we have new highs here, as well. we have historic highs, walmart, tjx. burlington stores, it's a 52-week high. dick's sporting goods. the retailers are getting all dragged up because of target. they had positive numbers to say about apparel. that's why these apparel stores are doing well today. know the s&p 500, 5667, that's what you want to watch. that was the old closing historic high. we have 50 points away from that in this market. that can happen in an afternoon. >> wow, so close. that's interesting, the impact that those target results are

having. bob, thank you. sticking with retail, our next guest sees some volatility but we had three dividend paying names that can weather the storm. let's turn now to neil hennesee. where is your mind now as we count down to the election? a couple of weeks ago, amazon was telling us election uncertainty was affecting the markets. >> you have to sort of look at, economists, analysts, i'm just an economic realist, kelly. but essentially, they can't have a recession without high unemployment. they're going to cut the rates. everybody's just out there trying to get what's going to happen. and then you look at the numbers today on the employment side. we are still averaging 175,000 new jobs a month. that's good. there's still more job openings today than there are people to

fill it. so looking forward, i don't let the political landscape, you know, push me one way or the other. actually, i try and turn it off and just look at value and where can you invest the shareholder's money so that they can make a profi profit. >> understood. people go, okay, if i have to consider it, i will consider it. even things like the proposed capital gains taxes, those issues more squarely in the investment wheel house, is that just a lot of talk and not much is going to happen? >> there's not a lot i can do about it, nor anybody else until it's actually enacted. if you look at one of the spells that businesses had under president obama's legacy where more rules and regulations came in, kelly, than ever before. but we weathered the storm. new taxes, tariffs, this, that. until we actually see it, there's no reason to go gamble

when you can go buy value. as i told you before, the magnificent seven, that game's over. people are now shifting to value. after you see what the feds are going to do, whatever is predicting, make 100 basis points, maybe six points by the end of the year. come on. the best they think we're going to get is a sympathy cut, 25 basis points. the economy isn't as bed as the headlines are telling you. >> is the magnificent seven really over, neil? because if anything, that's been leading the rebound since that recent selloff, whereas the russell keeps underperforming. >> yeah, look at the russell mid cap. it's up under 10% this year. the dow jones is up less than 10%. you're looking at the magnificent seven eight stocks, that make up 33% of the s&p. 43% of the nasdaq 100. come on, kelly.

once you get overweighted that way, you know the game's over. >> i know, but listen, i'm on board with you intellectually, i'm just watching the market action. >> well, you know, short term, i don't know where the market's going to go short term. i'm trying to look long-term and say are you going to be able to play tomorrow or not? maybe you are, maybe not. you can look at the carry trade three weeks ago, and then it comes to a point of unraveling, and everybody is going oh, lord, what's going on? i'm just looking at the mid-cap sector is where people should be putting their money, because if you look at it, so far this year, $$120 billion have come ot of stock equity mutual funds and $10 billion in money market funds. rates come down, that money's going to come out of money market funds and where will it go? i would assume and think

logically it will go into the mid-cap sector. >> i know you're hoping so. you do have names from across the economy. you like oshkosh, i think that's an industrial. you have group one. you've got a retailer in there, but my guess is that i assume that's less about, you know, what's going on with consumers more broadly and more about the valuation for you. >> well, it's all about the valuation. you look at all three of those stocks. they all have a pe of half of what the market is at nine. their price-to-sale ratios are at 0.3, so you're buying them at 30, 40 cents on the dollar. the one thing we talked about numerous times, kelly, you look at the mid-cap sector, they are big enough to weather economic tsunami, a soft landing, hard landing, whatever you want to call it. and they're also big enough to be bought. they're also big enough to make

an acquisition. so why go risk and gamble on seven stocks when there's so many other good companies making a ton of money in cash flow than just seven companies? >> but they want the returns, and the mag seven is still acting like they're the cool kids. let me just go back to the jobs numbers this morning. i'm going to wait for more analysis to come through on this, but it's very confusing time, because they're drawing from, at least in the past, quarterly census on unemployment based on jobless claims. in other words, we could be revising lower job growth, but the payrolls are capturing true job growth that has been taking place, just in this unauthorized vicinity. so if you look at the labor force participation ratios, they're behaving like the economy is still chug along. but i think this report is just going to add layers of uncertainty about the true direction of the economy. i just don't know if there's anything that you can tell people who might be confused about that, how to get a sense

of what the true picture is in the labor market. >> well, i think the economy is chugging along, kelly. you know, maybe we didn't add as many jobs. like i said earlier, 175,000 compared to 250,000. but the bottom line, is people are spending money. they're stretching their dollar further. the feds and everybody saying inflation is coming down. okay, it is. but people forget that prices are up 20%, 30%. so that's great inflation is coming down, but nothing else is coming down. but i think if you look at the consumer, they've always been resilient. you look forward and you go into the holiday season, i've said this for the last 20 years on this show, people are going to spend. they do have the money to spend. there's tons of money around. there's $17 trillion in banks and savings and loans. so $4 trillion are non-interest bearing accounts, like check

accounts. there's tons of cash around. >> all right. as you say, whether that's going to work in stocks or just whether companies do that with that, i remain bullish in the long run. 47-k. you think we could be headed there in the next 12 to 18 months. neil, appreciate it. go ahead. >> you took the high of 43 to 47. but just a little expansion in the pe ratios on the dow or the s&p is going to get you there, let alone more profits and cash flow, as interest rates come down. >> neil hennesee, thank you, sir. we've been talking about the 20-year bond up for auctions. rick, how did it go? >> well, it went pretty well. a b minus was the grade i gave for this 20-year auction at 1:00 eastern. if we go through the internals, the yield, 4.16, which is pretty

much exactly where the one issued market was trading, which is how we gauge much demand was based on where it was, right towards the end of the auction. and then how far back or forward they had to push price and yield to move all the paper. the bid to cover, most of the internals were very close to ten auction average. the bid to cover was a little light, but when you look at ten auction averages, what we have seen of late is, the last three or four months worth of auctions have really skewed the data a bit. but i'll stick with my original promise. it was a decent auction, all things considered. the dealers took less than the 12%. they were down to 9.7%. so a b minus. but here's the biggish swhu the 20-year. it's basically hovering unchanged on the year. it settled at 4.19. this market went off at 4.16. if we look at the rest of the yield curve, it is the odd-man out to some extent.

it isn't as popular and other maturities, and sit the highest yield on the current yield curve between two year and 30-year bonds. >> rick, the architect of this return on the bonds, he said those yields are significantly higher than elsewhere on the curve. i don't know if that would be seriously under contemplation, but i think people are questioning what the point is of having it. >> well, i think the reason the yield is the highest is because it's probably not as liquid as the other maturities, and that works against it. however, as much as i agree with ma n his comments, especially in the day and time and age we live in, at the time it was brought ut, it could have been a lifesaver. don't you wish we had told a lot more 20-year bonds when rates were zero precovid? but we didn't so i see the door open to potentially knock that

issue out, and of course, concentrate more on long maturities that have a little bit deeper bid offer spreads. >> rick, thank you, sir. rick santelli. back to the consumer, bank of america downgrading amex. the analysts note that not even the impending rate cuts could be enough to give amex enough edge over competitors. this reminds me a little bit of the amex warning sign in 2008, but that was more small business related, it came from the company first. this feels different. what do you think is going on? >> hi, kelly. firstly, thank you for having me. i think, you know, it's like you said. what we are seeing is more and more warning signs. not necessarily that the consumer is turning over or is weak, but we're not seeing any kind of reacceleration. we're not seeing the back half of the year looking better than the front half.

you saw the earnings reports from retailers, launching companies across the board. what we found particularly on lodging, travel, restaurants was signs of weakness. maybe the back half not as strong as the first half of the year. and that does have important categories for american express where 20% of spending is on restaurants, travel and entertainment. so those spending categories are seeing a little bit weaker demand than expected. that suggests that the u.s. consumer is going to have slower growth. >> there are people trying to quantify this at the macro level and say this whole kind of post pandemic -- when the reopening kind of services travel splurge is coming to an end, and we look to be normalizing back to precovid patterns. so would you describe this as normalization to a preexisting mean or something that is more pointing in the direction of an economy wide slowdown? >> i think that's the right way

to think about it is the former, the normalization, and that kind of call, we're seeing more and more signs that some of these categories are normalizing to what was happening precovid maybe. and that kind of a backdrop, you have normal growth in consumer spending. that should provide normal stock returns. extraordinary returns in the stock market should come from extraordinary performance. right now, we're seeing normal performance. we're not see thing is some kind of great for the company that something is going to go majorly wrong. we think they can achieve the low end of their guidance, but we don't think this is an environment that will drive up-sized returns on the stock, which is why we took the rating to neutral. >> when you go through the charts, you're showing they're underperforming relative to spending on bank of america card for instance. so they're overly exposed to the areas pulling back right now.

do we turn a corner turn of the year as long as the labor market holds in there? >> yes. so i think as long as the labor market holds, that's a very important point for the consumer. i expect it will hold from b of a economists, that's what we rely on. and they tell us that unemployment will hold up pretty nicely. as a result of that, we do think that the consumer will come back up and i think resilience, i think neil earlier was talking about the consumer is resilient. they'll spend as long as they have jobs and pay their bills. we think that will happen, we just think it's not going to have an acceleration. >> it's interesting how you point out, this might be an underperformer and a soft landing scenario. in the hard landing, people want to go to the high end that might be hit less. if sit a soft landing, then the more middle class oriented names could outperform. thank you for bringing this to us. appreciate it. >> thank you.

still to come, the owner of the iconic empire state building joins us. plus, the obamas headlines a star-studded second day of the dnc, but there's been one noticeable absence from harris' economic agenda, china. that seems to be one of the biggest policy divides. we'll get a live report from the dnc ahead on "the exchange." >> this is "the exchange" on cnbc. 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.

welcome back. shares of target are higher by 12% today, but they still struck a rather cautious tone in their full-year sales forecast. as shoppers get picky about pricing. my next guest has insights into the health of brick and mortar. joining us once again, anthony malkin, chair and ceo of empire state and realty. welcome, good to see you again. how can you have 90% retailers? >> nice to see you. 90% of our analyzed from retail is from national retailers is what we mean to say in that. so it's not a local small shops, it's national retailers. >> it always feels like there's so many towns that say we don't want national chains, we want local, we want local.

they feel like once you give way to a national chain, they can come and go. maybe that's out of date thinking. what's your mantra about all of this? >> we like credit, and we like permanent retailers to provide good services to our tenants. >> so you seem to have a number of those. how are they doing? how are the cash flows? how are the sales? >> as best we can tell, things are quite good. that's part of the whole return to office where most of our retail is located, except for some new akty sigss. the return-to-office drive twhas happens in the bulk of our 8 million square foot portfolio. so our retailers are doing much better as we see much more dynamic return to office. just to tell you, we've done our 12th consecutive quarter of positive market growth, and 10th positive leaps absorption. so we're quite happy in new york

city. >> don't you feel that you were a bit ahead of the curve on return to work. i don't know if that's because you had some of the locations or features that made it easier for people to come back. >> i think the most important thing about it is, that we have a portfolio that people really like. and we have seen 2.8 million square feet of expansions in our 8 million square foot portfolio since 2013 of existing tenants. a new york city office portfolio is 90% leased as of q2. you're spot on. modernization, great locations, the single seat commute is extremely important. and new york city is so important to that success. i was out in san francisco recently. i was in chicago. i was in minneapolis. new york city has a dynamic and in demand perspective that is really unique to the united

states at present. a >> is new york city more back to work than san francisco and zmig >> 100%, 100%? i think the great thing about new york city is how dynamic it is, and how much people want to be there. that's where they want to start their lives, meet their spouses, culture, shop. by the way, the expansion we've made into north 6th street in williamsburg in retail is all part of the diynamism of new yok city. and that just speaks to that growth of new york city constantly reinventing itself. >> 20 years ago, it was already cool. and now it -- i'm thinking about the problems still for san francisco and chicago and so forth. without dwelling on that, what

will be the effect -- if the fed cut 25ss 25 basis points, is th going to have that much effect on your business? >> it sounds like both parties have these inflationary policies. we have no exposure to spexplodg rate debt. so when we look at this, we say it's better in our view to have a strong vessel rather than focus too much on the weather prediction. my only concern is that if the interest rates come down, due to economic slowdown, that's not much of a boone. that said, we feel very comfortable with highly desirable office assets in great locations, over 93% leased. and our new exposure, remember now, since 2013, we really didn't buy anything. and then just in the last 30 months, we've signed contracts

or bought over $630 million of residential and retail property. so we feel good about where we are, and we feel good about the dynamics of new york city. >> and you've been able to be opportunistic because of those issues you mentioned with rates and i'm sure on the margin this will help. we'll check back in and see how it's going. tony, thanks. >> thank you very much. still to come, the rise of ai is raising concerns about copyright infringement. now one company is getting hit with a class action lawsuit. we have those details,ex nt. (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses

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insurance. what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com. welcome back to "the exchange." here is your cnbc news update. joe biden is set to speak with israeli prime minister benjamin netanyahu today, according to axios, the president will push netanyahu to be more flexible on the gaza/egypt border to reach a cease-fire and hostage release. the white house has yet to comment on the call. a telecom company has agreed to pay a $1 million fine for its role in distributing the deep fake robocall that impersonated joe biden's voice ahead of the

new hampshire primary this past january. federal authorities say they hope the settlement will deter the use of malicious deep fakes in the future. miami heat star jimmy butler and ben armstrong agreed to pay $340,000 to settle allegations they helped dupe finance crypto customers into buying unregistered securities. bloomberg said a judge still needs to approve the final deal as part of the settlement, both have denied any wrongdoing. kelly, back to you. >> bertha, thanks. a class action lawsuit hitting an ai startup backed by some of the biggest names in tech is accusing anthropic of copyright infringement. deidre bosa has the latest. deidre? >> this lawsuit is really just the latest of many other authors, journalists, record labels, creators. they try to wrestle back control

of their work. at issue is the way that chat bots were trained. the technology, of course, moves fast. legal frameworks move much slower. three authors say that anthropic used pirated versions to respond to human prompts. they say they're aware of the suit and assessing the complaint. but other groups sued meta and openai. this even the first copyright against anthropic. the gen ai companies, this raises the question how do you go back and gut the genie in the bottle? perplexity debuted a revenue sharing model for publishers after accusations of plagiarism, but we're starting to see market

solutions for market problems. a 2-year-old startup called story just raised money at a $2 billion valuation and uses block chain to prevent gen-ai chat bots from taking information without permission. it turns ip into ip licensing. so this could be one solution. but the point here, this industry is moving really quickly, and there's a lot we still haven't figured out. >> more people are realizing all these models were trained for research purposes going bab to openai's creation. and then became for profit, whose content is based on information they don't own. so this is a massive problem at the heart of this whole technology. >> that is such a good point, that many of these companies began or even are still labeled as non-profits, right? so the intent was not to charge users for it, but now they're making billions oh of dollars off of other people's work.

it's not just, you know, the startups, but google and meta are going to deal with this problem. it's interesting when we talk about an anthropic, it's backed by amazon and google. so they're taking the fall. how does this -- does this eventually affect the companies that have put a lot of money into this? >> and call into question what openai's business model -- a lot of startups start cheap but can raise prices, but it has to pay more for legitimate content. i don't know what that means for -- >> yeah, i wonder about some of these content deals. like the ones that openai is signing, is this the publisher saying we don't have a choice, we might as well get some money for our content? but this new startup story is interesting, because this sort of puts the power back potentially into the publisher and creator's hands by saying they can have control of this with technology. using technology to fight technology to sort of give back control, could be an interesting

development. >> deidre, i'm sure they'll come up with something. if nothing else, it will be trying to cut off access entirely, unless they get paid. deidre, for now, thanks, appreciate it. coming up, u.s./china relations could be one of the biggest issues on the campaign trail, but both are prchg apoain quite differently. we'll dig into the divide, next.

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it's the third day of the democratic national convention. minnesota governor tim walz takes the stage tonight. eomon has more. >> reporter: hey, kelly. when kamala harris released her economic agenda last week, there was one word that was missing from it, and that was china. now, look, that stands in sharp contrast with the trump campaign, which has made tariffs blocking chinese imports this central part of their economic agenda. the trump campaign talked about revoking china's most favorite nation status and blocking chinese investors from buying

american real estate and companies. harris' views on china can be difficult to tease out given her limited foreign policy experience. but she has met xi jinping face-to-face and described her approach to china as about de-risking the bilateral relationship. her efforts to define the china policy will be made more complicated by her vice presidential nominee's long ties to the country. tim walz lived and worked in china for years as a young man. and he's got a record of commentary critical of the chinese government, particularly on humanrights issues. he's traveled there more than 30 times. so we'll be watching to see if he mentions that when he speaks tonight here in chicago. kelly, i spoke to one former biden administration official this morning who expects a lot of continuity between biden and harris on china. that means a focused on economic security and controlling exports of cutting edge technologies, like chips, ai, and onequantum

computing. back to you. while we aware more clarity on the china policies, my next against says there's few differences between democrats and republicans. joining me now is jerry seine, visiting fellow at the doll institute of politics. great to have you back. >> thank you. >> it's great to have evan holm, is it not? >> it is awesome, yeah. it's a huge relief to everybody in "the wall street journal" family. so we're grateful for the help of lots of people, the biden administration in particular to get him home. >> as i think about that, i'm reminded of the story about the biden administration and what is happening with these nuclear plans that would acknowledge kind of both russia, which we're talking about in evan's situation. and iran.

how should we be thinking about these global affairs right now? >> this is the real new global order that's possibly taking shape. it's really scary. who would have thought that you would have had to worry about a nuclear alliance effectively involving china, which has a building nuclear arsenal, russia and iran. it's not there now, and the differences between russia and china are still real. iran does not have a nuclear arsenal. but when you think long-term, now you have to take into account such a possibility was unthinkable ten years ago. that just tells you how the world is dividing up into p pro-western, anti-western camps. >> how would each party tackle this issue, do you think? what would the republicans most likely want to do, what would the democrats want to do under harris and walz? >> you know, the republican view on iran is very clear. let's continue to keep the

pressure on. let's move as far away from the obama nuclear deal with iran as humanly possible. and hope that pressure works to change behavior and, without saying so, change the regime in iran. democrats have a trickier equation when it comes to iran, because they have thought that engagement might help curtail some of the excesses over the iranian administration. would a harris/walz administration go back down that road? hard to say. both times agree that pressure for china is here. when it comes to russia, you have real differences. vladamir putin is not donald trump's friend necessarily, but he wants to have a good relationship. he makes that very clear. not clear the democrats want to go down that path. so watch the strategy for containing russia not clear. >> also, it's expensive to have to be armored and ready to deal with this new access that you described. in the '90s when we were reducing the deficit, part of it was this post berlin wall that

we were able to use to bring the budget back into balance. now as everybody is pointing out, you can't cut defense or make any real cuts to entitlement programs. you would have to cut spending 35% to put things into balance, with you japan has 250% debt-to-gdp, the boj buying up the debt, and so should we worry about cutting back on some of these budgetary items that are all pretty important or not? >> you've got a really intriguing point about this entire campaign. the two words you don't hear at either convention or out on the trail are deficit and debt. and yes, it's true the markets don't seem to care. the markets don't care until they do. and when they do care, it's probably too late to fix the problem. you know, i think and i have read that there is a great long-term danger lurking here. there's a debate about when that

point of crisis might arrive, but it's out there somewhere. and it's really striking that neither party is interested in talking about the deficit or the debt, even when it comes to attacking the other side for having increased the deficit. you know, the democrats made some noises after the convention this week about the trump record of having increased the national debt while he was in charge on his watch. but that hasn't been a point of view, because i don't think the democrats want to talk very much about doing something on that front either, because as you suggest, the two big places to go are defense spending and entitlement spending. neither party wants to talk that. they're in populous mode right now, true of the republicans and democrats. and it's part of that populous mode they're saying hands off of entitlements. this is in stark contrast to republicans who just eight years ago were talking about doing something to make the social security and medicare systems more solvent for the long-term,

not now. >> romney/ryan feels like a distant memory. thank you for your time today. coming up, shares are higher on news, but the two coal producers will merge in a deal atnded at $5 billion. th a a check on the other big movers, next. you'll find them in cities, towns and suburbs all across america. millions of americans who have medicare and medicaid but may be missing

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welcome back to "the exchange." markets are green right now, as you can see, with the dow the smallest of the gainers, as today the russell 2,000 is up 2%. the ten-year, 3.77, dipping lower after that revised payroll number. gold is taking a breather after nine positive days in the past ten, including yesterday's record high. prices are still up 23% this year, and 5% this month, or around $2550. but barrick gold is up to a

52-week high yesterday. here's what the ceo said this morning. >> if you look at the global economy, it's not in good shape. and the best measure recently is the weaken ing weakening iron o. >> down 30% since january. the boosters would say this is more about china's weak and demand than a global recession, but not a consumer one. coming up, the u.s. has had its fair share of wild weather this summer. we'll talk to the ceo of a company that installs storm water infrastructure across the country. the shares are up 25ov t% erhe past year. that's next. i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them?

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welcome back to "the exchange." starms of advanced drainage systems are down 14%, with a drop in the agricultural last quarter, ironically because bad weather slowed down the installation of pipes. analysts say they're still encouraged by the solid top-line

trends. take a look at how it's performed since the public debut ten years ago today. it's up nearly 800%. joining me is scott barber. scott, great to have you here. >> thank you for having me today. >> your systems seem as relevant as ever. in my town they're constantly putting in additional drainage because they could handle the flow of water. >> that's not uncommon around the country. we see installation of our products as a result of more intense and frequent rain events. this is a tailwind for our company. we have the right solution to mill gait flooding in these heavy rainfall events. >> i think it was ironic you have short-term headwinds, because there's been so much rain you can't get systems installed. how unusual is that? >> the agriculture business is

not a huge segment for us. it was not good over the last quarter, but our infrastructure business up 19%, our nan-res bess up, owned recent dench am business is up 6%. while ag was not great, we have other divisions working well. >> do you have significant kind of fiscal benefit from those times of programs? >> yes, we do. we're impend fitting from the on-boarding. ev batteries sites coming online are being constructed. the i.i.j. money -- roads,

highways, airports -- we have a lot of participation for not only our pipe products, but our storage products form think of these as accessory. we're active on i think 33 airport projects right now. >> i ask in part to understand why the economy keeps going at a time when the fed has jacked up interest rates, but so much of this money is still hitting the economy. i don't want to ask you too political of a question, but do you pick a president based on whether those dollars might continue in the years to come? . these are bipartisan products. no one likes a street or neighborhood that floods. no one likes a piece of property that's recently developed and doesn't have good water management. so, we believe that, no matter which way this thing goes, if there's still a big need for

water infrastructure, the epa came out with something recently that they think there's like $600 billion that needs to be invested in water infrastructure over 20 years. that's not just stormwater, but drinking water, wastewater, all these types of things, but we think there's tremendous tailwinds for people in our business. >> how big can your solutions get? we talk about, okay, my fade, there's water down the street, but if you're in parts of the country that experience massive flooding because of hurricane or look at what happened in the northeast in the past couple days, can your company help to mitigate those effects or not? >> absolutely. we sell onto the products every day. our bread and butter is a good, non-residential development, 5 acres to 5,000 acres, where we're providing not only the pipe that would go to move that

water around, but the storm drains, storage, we clean that water up with filtration and separation and biofiltration, and get it back into the watershed. our st. louis kale up very nicely. we're a broad provider of these water management solutions across all kinds of different segments and properties, to tell you the truth. we've done quite a lot on these businesses as they become more important. again, scott, congrats on ten years and thank you for your time. by the way, an all-new podcast series is right now "the crimes of putin's trader" a real-life spy thriller hosted by eamon javers.

you can following where you get your podcasts. nc"erl see the next for "pow luh. stay with us and for the fed minutes on the other side of this quick break.

♪ his. welcome to "power lunch." i'm kelly evans. joe kernen joins me today. >> and no lunch, right? >> we'll see if we can get a salad. >> i can go by the desk with the

snacks? >> that's how they entice you. >> it's a bit of a mixed day for the markets. amex is a headwind there. we have the s&p up 1.3%, but the russells are also up, as they finally take a leadership position. down a business after the payroll numbers. let's start with the fed minutes. emily wilkins is in washington. >> reporter: hey, kelly, from the fed minutes, for the fed governors, they saw that inflation was eased over the last year, but it remained elevated. all of them supported maintaining the current range, but there was some port for a quarter-point cut in that july meeting, and inflation was going towards of 2% goal, but they needed greater confidence before reducing tha