>> vistra corps. >> farmer? >> wynn resorts. has me feeling good. >> chipotle, down 20%, buying opportunity. >> any site visits? >> no site visits. >> i'll see you at 3:00. "the exchange" starts right now. ♪ ♪ thank you very much, scott. welcome to "the exchange." i'm dominic chu in for kelly evans this afternoon. here's what's ahead on the show. how fast and how far will the fed go with interest kate ruts? jay powell did not say, but he did signal a september start, and one guest wishes he had not. he's here to explain. >> and billionaire greg flynn is so confident san francisco will turn things around, he just put $40 million behind that conviction. he'll join us for an interview on that trade and where else he's seeing some opportunity in

commercial real estate. and three more names on deck to report, including this one. our trader says buy it. it's good short term. that trade with potentially 15% upside. we have that name and how to position on two more. we begin with today's markets, and we are seeing a bit more of a mixed picture overall. the dow, the s&p 500, and nasdaq are showing some signs of life. generally speaking, the dow industrials fresh off of a record high, pulling back, down about 0.2 of 1%. 41,172 is the last trade for the blue chip index. the s&p 500 is at 5619, up just a modest two points, essentially flat for the session. at the highs, we were up roughly 15 points, and the lows, roughly down about 23 points. so keep an eye on that intraday move. modest moves so far. the nasdaq composite, very much in line with the s&p.

17,731 is the last trade on that tech-heavy index. just about flat on the session, as well. we have some interesting headlines out of health care, big pharma specifically. i'm going to put the names eli lilly up there, one one half of 1%. it just announced a different version for its popular glp-1 drugs that gives you single doses and certain dose levels for as little as $400 to $500 a pop. interesting move there. it's going to be available on their direct-to-consumer platform. speaking of direct-to-consumer and pharma, large-cap pfizer is launching its own direct-to-consumer plat toform sell their drugs. and another telehealth platform here that provides different types of drugs with telehealth assistance, is now down 6.5% in response to some of these moves here. so an interesting spattering of news driving the trade in health care right now.

and then let's check on the chips sector. super myike rowe computer focus about a 2% drop today. this is today's action, driven in part by a new short thesis being brought about by hindenberg research, which alleges accounting manipulation at the maker of ai server platforms. so super mike rowe something to watch there. nvidia, options are pricing in at 10% to 11% move there. broadcom, semiconductor etfs are names to keep an eye on. well, let's now turn to that macro picture. august consumer confidence, hitting the highest level in six months. but consumers are becoming more concerned about the labor market. this is all as fed chair jay powell cited the labor market as where rate cuts are imminent. for more on how far the fed may

cut, let's bring in our panel. i'm joined by senior economics reporter steve liesman, steve ogland and the chief u.s. economist, steven stanley. a tribunal of steves. steve liesman, we'll start with you on just how much the market is expecting with regard to rate cuts. >> yeah, i just need to point out that steven stanley is spelled with a ph. i think you could hear that how you pronounced it, dom. very important. we are looking at here, i'm just looking at the september 25 fed funds contract, trading at 327. so you could do the math there. that's about 2.20 under. if i look quickly at the january 2025, we're looking at 4.27, that is 1.20 under. so i'll do the math. 120 basis points, about 5.25

bases points between now and january, and call it five or six -- sorry, a 10 by a year from now. so there's quite a ways to go. one way to think about this, dom, is to look at how far from neutral the fed believes itself to be. so we've got a little chart that looks at the highest, the lowest, and then the medium when it comes to how farther off this 538. there it is right there. so the yellow line, that's the first yellow bar there. that's the highest neutral latest mate by anybody on the fed from the june projections. there are 160 under where they are now. go to the lowest 240, that's under. so somewhere in there is the belief about where the fed is relative to neutral. and somewhere in there is where they need to go to get into position, dom, to help the economy, if it's needed.

>> so there's the current state of play with regard to what the markets expect. i'm going to call you professor stephen stanley. from an economist standpoint, there is a reason why the fed and chair jay powell said what they did during the jackson hole symposium. there is a legitimate concern about the labor market and the possibility of the u.s. entering a deeper economic downturn. is that the right way to approach it? because it sure looks like a lot of the other data points speak to no imminent recession at all. >> yeah, i think the economy's in okay shape. i don't think we're headed into a recession, but if you're the fed, your job is to manage your risks. for the last couple of years, the risk has been on the inflation side. now inflation has come down, the labor market has cooled enough that i think the fed has to at least think to start to consider that risk, and as steve laid out, the fed is quite

restrictive now. so they're signaling they're in the beginning of moving back towards neutral. >> all right. guys, i want you to each hang on. we have a critical two-year note auction up for grabs right now. rick santelli is tracking some of the action from chicago. rick, what can you tell us about demand for government debt? >> well, do keep in mind, the two-year note yield is correlating with the notion how many rate cuts the fed may dish out, so there's a bias there. this auction was 69 billion, kicking off 183 billion of coupon supply, and the yield at this auction was 3.874, a smidge lower than the one-issued. lower yield, higher price, government's the seller. that's a good thing. if we look at the internals, 3.874 was good, and all the internals were at or slightly better than the ten auction average. i gave this one an a-minus, hard

not to. you can see the initial response, yields dropped a bit but came right back, which made sense, as well. the longer maturity also be a bit more of a challenge, especially the seven year on thursday at 44 billion. if you look at yields early, they opened up and traded higher than yesterday's high yield, lower price. and that everything reversed, right around 9:00 eastern, the long end still sees higher yeelsd, so we see the curve deinverting, something to pay attention to. >> thank you very much, rick. let's get back to our panel right now. i'm going to bring in steve ogland for this. we have the markets and probability story from steve liesman. professor stephen stanley has given us the economic view as he sees it over there. let's talk about the business component, kind of where the rubber meets the road and just how comfortable america's business community feels about

the economy and whether the fed is on the right path. >> yeah. it appears with the consumer confidence indecision, which just came out, that ceos and consumers are aligned with the president and future situation. so both the present and the future situation confidence went up with consumers for the first time in a long time. the place where people are less confident is both in the lowest income brackets and also the youngest people. both declined. so that's where the worry is, and it comes around jobs and wages. and that correlates with what we have seen most recently with the unemployment rate. so you see all of these factors aligning and making sense across all the measures. most concerns still driven by inflation, and interest rates, and of course, the expectation that bill also be coming down, but still a little nervous about what it means in the coming

months. >> professor stephen stanley, is there a reason why things have shifted so dramatically? it was not that long ago, within the last 12 to 24 months, when we had headlines about the great resignation, people leaving jobs shortly after they took one because they found a better one, all of that seemed to go away within the last six to nine months or so. how quick does the economy pivot from a narrative that bullish on jobs to one where the fed is considering job weakness as a factor for rate cuts? >> i don't think the labor market is terribly weak, but i think what we have seen over the last year is that huge pent up store of job openings that developed during the labor shortages during and just after the pandemic have mostly been filled. so firms were desperate to hire two years ago, a year ago. now they have more or less back filled to what they needed, so back to a much more labor market

situation. >> what about the wage side of things, that has to be a key as well, professor stanley. >> wages are coming off, still higher than before the pandemic. i think the fed could tell you they need to come down a little bit for them to be comfortable with the inflation outlook. but they have more or less normalized. >> steve liesman, i mean, i see you nodding there. there has to be something that's going to be tangential to the story, which makes this seem relevant to everyday americans. >> well, i wanted to talk about -- i wanted to answer your question about what's changed and give folks a metric by which to monitor what the fed is watching. the big story at this beverage curve, it's the nemployment rate versus vacancies. just putting some numbers on what stephen stanley was talking about, you were at two vacancies for every unemployed worker. you're now down to 1.2. 1 is thought to be normal.

when you ask why powell pivoted, that's a big part of it, a normalization of the relationship between vacancies and unemployment. also, we have seen some decline in wage movement, still a little higher. but a big story what i chronicled in the last personal income report, was a decline. it was a lower growth rate of service wages. this is the reason why powell was watching services x housing, because that was something that is really linked to the wage growth in the economy. and when we see that come down, and it was a very important part of powell's speech that he no longer sees the job market as a source of inflation in the economy. >> steven ogland, we're going to give you the last word. what exactly are the concerns for business owners and consumers in america with regard to the next six months to a year? i say that because we do have a very important election coming up in just a few months' time,

one where the economy is going to be put front and center with a few other key issues. >> yeah. you know, it's -- the conference board's most recent survey on wage expectations for next year are that they should rise between 3.5% to 4%. that's a little surprising. you would expect with inflation coming down, that you would see that normalize more closely to 2.5% to 3%. but clearly going into the election, households are focused on themselves. how is our job? how is our credit situation? they're pretty much maxed out on their credit cards. the savings account from the covid savings is pretty much depleted. they're starting to feel stress, which drives their spending and the economy. so i think we have to watch that, because i'm not sure how much more there is for them to go. so the wages then become the primary driver here, and hence, the nervousness about our ceos

and are companies going to battle back on jobs or continue to horde skillsets the way they have. >> steven just brought up a very good point there, so i'm going to get you, stooephen stanley t last word. when you give yourself the speech that powell gave, it doesn't leave much room for improvement. you have to cut rates in september, is that a good or bad thing? >> i think it tells you that they have made up their minds. the markets have been delegates 25 versus 50. i feel like jackson hole was addressed more to the general public than the general markets. he wanted to, hey, here's a heads up, we're cutting rates soon. that isn't news to anyone in the financial market. >> the tribunal of steves, thank you very much. we'll see you soon.

we have a new record in the housing record set today. now over to diana olick with another part of the economic picture, home prices, diana. >> yeah, prices reached the highest level ever. on a three-month running average ending in june, prices nationally were 5.4% higher than june of last year. despite being a record high, we see the annual gain was smaller than may's 5.9%. the composite road 7.4%, down from 7.8% in may. the 20 city was 6.5% higher year over year, down from a 6.9% increase in may. the report highlighted that while both housing and inflation had slowed, the gap between the two is larger than historical norms. the index is averaging 2.8% more than the consumer price index, well above its 50-year average. now, regionally, new york saw the highest annual gain among

the 20 cities with prices cl clicl climbing 9% in june. that's followed by san diego and las vegas. portland, oregon, saw just a 0.8%, the smallest of the top cities. prices are rising faster on the lower end of thepply is leanest end. we saw that in july, sales of homes priced below $250,000 dropped, whereas million dollar homes shot way up. domsome >> diana, it wasn't that long ago, but mortgage rates were rising during this period. how did we get the kind of numbers we just got from you right now? >> it just speaks to the kind of market we're in. if you look back, because this is a three-month running indicator, so you have to go back to april on the prices. april 30-year fixed shot up to 7.5% in may, stayed over 7% in

june before falling back in july and more sharply in august. so it really just speaks to the kind of demand and the intense lack of supply that we still have in this market that is supporting those red-hot home prices. >> diana olick, thank you very much. coming up on the show, stocks are pulling back after the dow's record close yesterday. after the break, we'll look at some of the risks to the rally and how important nvidia's earnings are to the broader market story. plus, a rare interview with billionaire investor greg flynn. he runs the world's largest franchise operator and making a multimillion dollar bet on the future of office space in the san francisco bay area. "the exchange" is back after this. >> this is "the exchange" on cnbc.

your record label is taking off. but so is your sound engineer. 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

is it possible to count on my matchininternet like myiption. customers count on me? it is with comcast business. keeping you up and running with our 99.9% network reliability. and security that helps outsmart threats to your data. moaire dida twoo? -your data, too. there's even round-the- clock customer support. so you can be there for your customers. with comcast business, reliability isn't just possible. it's happening. switch to reliable comcast business internet with security and get started for $49.99 a month.

plus ask how to get up to a $500 prepaid card. call today! gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. welcome back to "the exchange." the dow pulling back from its record high set just yesterday. but our next guest believes strong earnings growth will drive stocks higher from here. joining me now to discuss this is the founder and ceo of zoe financial. andres, thank you very much for being here. we love having you in studio. let's talk about this back half of the earnings season. all of the big names are done except for one very important one, some would argue the most important one of the entire

season, and it's not alphabet or microsoft. what do we think about nvidia and the impact it's going to have tomorrow? >> regardless of what the results are, what's important to note is that if you look at the options, they're pricing to move up 10% or move down 10%. for a stock that's now 6% of the s&p 500. so regardless of what your view is, it matters for macro. even two years ago, it was less than 2% of the s&p 500. so it is the show, especially in august at a time where it's quiet, it can even have a bigger impact than usual. >> from a market perspective, because it is the -- probably, some would call it the second weakest liquidity, trading liquidity wise, next to just the christmas holidays, can we expect each more than just the 10% that we would expect in the options market? >> yeah, look, i started my career intrading and in august,

you know, because liquidity dries up, there's a lot more volatility that could happen with something like this. you have a lot of interns running the desk in the last couple of days. >> you and i are here right now. >> we're here, but what is important to note that -- bank of america did some research on this. over the last two years, nvidia earnings had a preinfluential effect on the market, not just that day but the following two weeks. so it's not like a daily event. it could carry forward. >> what do we think about whether or not this story around nvidia is enough to either propel the next leg higher for the market or give you that concern that the ai perceived bubble by some could be due for a kind of direction? >> it has a big effect. there's a bellwether for a lot of the other chip stocks, but as well as the broader technology sector. i would caveat that, that's looking at the next couple of

weeks, months. there is the fact that earnings are doing well for non-tech sector, as well. that's not dependant as much on nvidia. in fact, some of the other stocks that are not tech driven have driven the rally in the last couple of weeks. >> if you are looking at the earnings growth picture and story driving the market higher, what parts are your favorites with regard to earnings growth driving upside for the market? >> great question. first, technology needs to hold them. it's such a big component of the s&p and of earnings, that you can't really say earnings will be double digit without meta and google and microsoft continuing to perform. but there are sectors like financials, for instance, that have a couple of tailwinds going for them. if rates come down, we were just talking about mortgage rates, you could see financials perform better than they have recently. you add the fact that their valuation looks attractive versus the tech sector, and

momentum is going their way. financials are one of the best performing sectors this year. there are other sectors that could continue to carry the rally. >> with regard to the cyclical versus less economically sensitive or defensive sectors, we have seen folks gravitate more towards the utilities equation, the consumer staples, some of the heftier dividend payers. it seems to click with an environment where the fed is expected to lower interest rates systematically over the next 12 to 24 months. are defensive sectors still in play? >> i think so. there's a rotation happening from tech into sectors like that. look, if rates come down, high dividend yielding stocks become more attractive than they used to, but that's one part of the play. there is the fact that if the economy holds up, and i believe it can, the data so far supports a soft landing. some of the sectors like financials could perform well,

as well. >> all right. thank you very much. we'll see you again soon. >> thank you. coming up on the show, elon musk coming out in support of california's controversial ai regulation bill. the details and potential fallout for big tech coming up next. "the exchange" is back after this.

do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had

planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

welcome back to "the exchange." industrials are underperforming the s&p 500 this year, as you can see behind me here. the sector's performance overall has been a middle of the pack performer. let's talk about the valuations. andres just spoke about some of those valuation concerns, and perhaps opportunities. now, according to data from market analytics firm ycharts, we're looking at the sector overall and which stocks are trading at the biggest premiupr. the ones that are trading at the biggest premium to their forward pe ratio going all the way back

to december of 2020 are builders first source, trading at 78% premiums to its price-to-earnings over the last four years. united rentals at 51% premium. again, one-year forward expectations. now, let's look at the biggest discounts. if you look at those, american airlines, trading at a 78% discount to that average pe ratio. day four, 62%, and southwest airlines, 62%, as well. so airlines, a key focus in some of those value trades right now. we'll see whether or not that plays out in the coming months. now let's go over to tyler mathisen for a cnbc news update. >> dom, thank you very much. more than 200 former gop and campaign staffers who worked for bush presidents, the late senator john mccain and mitt romney, are throwing their support behind kamala harris. in a letter published monday, the former staffers said while they had disagreements with the

vice president, the alternative was not an option to them. a texas judge paused a federal program that could give a path to citizenship to undocumented immigrant spouses married to u.s. citizens. this comes just days after a challenge by 16 republican-led states, accusing the biden administration of abusing its power by going around congress. the president wrote, that ruling is wrong. these families should not be needlessly separated. america's only formula one driver, logan sergeant, is out for the remainder of 204. he joined the grid last season and only scored one point, sparking speculation of a possible mid season change. his crash last weekend revived those talks. back to you, dom. >> tyler mathisen, thank you very much for the news update. battle lines are being drawn in the tech world over ai regulations, and who should oversee it.

today, elon musk voiced his support for a california bill that aims to put ai guard rails in place, but some of the industry's other big names have come out sharply against those regulations. deidre bosa has more on that divide for today's "tech check." dei? >> yes, it is a divide indeed, dom. musk's position on ai safety is complicated to say the least. on the one hand, he's been a proponent, calling for the pausing of training. on the other hand, he raised $6 billion for his own ai startup. what is certain is that musk is a major voice and player in the space, so his endorsement of the bill could be critical, especially as it moves through legislature this week. an approval would bring it to governor newsom's desk to pass or veto. the bill requires large-scale models to undergo safety testing, focusing on the companies developing those models. something that companies themselves say is needed and

claim to be doing in the first place, but where many, like openai and others, which backs a lot of these companies, what they take issue with in the bill is likely the enforcement piece of it. it would require third party auditors to go in and assess safety practices and empower the state attorney general to take legal action against developers who are not compliant. dom, that brings us back to the sticking point. when we talk about the regulation of new technology, the companies themselves ask to be regulated but they want it to be done their own way. this particular case does raise the question, why do it here in california and not at the federal level, where it could have a bigger impact. the answer, which senator weiner, what he argues as well is that should be the case but it just doesn't happen. it's all talk and no action. here's where we are. this california bill, though, which is moving, dom, could have implications for what does happen at the federal level eventually.

and that is this really tricky topic of how to regulation this technology. >> california legislature is influential when it comes to this kind of thing, but how likely are we to see any real movement on this that then spreads to other states and perhaps even the national level? >> right. and we know that government lawmakers are slow and we also know that tech companies have a way of working around this, or influencing what ultimately comes to fruition. you have some major players who are opposing the bill. i mentioned openai, just a few days ago. you have also got the likes of google who has come out and said this might stifle innovation. but i think the fact that musk has thrown his endorsement could change it a little bit. we'll have to see what happens. we should find out. >> deidre bosa with today's "tech check" on ai. coming up, greg flynn joins

us for a pulse check on san francisco's office property market and the big bet he's making on the bay area, coming up next. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria.

visit indeed.com/hire and get started today.

welcome back to "the exchange." a recent supreme court ruling has given states and cities more options in clearing homeless encampments, including fines and jail time. in california, which counted more than 180,000 homeless residents, nearly 30% of the nation's unhoused last year, different approaches are unfolding as cities try to respond. kate rogers is here with more details on that story. kate? >> encampments have become one of the most prominent visual challenges in california in tackling the housing issue. the governor cheered the court's clarity on actions that can be legally taken and urged governments to develop policies to address encampments with care and urgency.

the state has invested $27 billion to address homelessness. in san francisco, mayor london breed, who is facing re-election this fall, has taken a more aggressive approach. that has been met with some criticism from homeless advocates. >> what it means for homeless people, though, this is a real kick in the gut. because they have very few protections. >> breed admits the issue cannot be resolved without more affordable housing, claiming it's causing tension in communities, and some encampments move just blocks away. los angeles mayor karen bass said the ruling must not be used as an excuse for cities to attempt to arrest their way out of this problem or hide the homelessness crisis in neighboring cities or in jail. the economic ripple effect of homelessness is felt in the state, from emergency room visits to street cleanup and shelter costs. dom, back to you. >> kate, thank you very much for

the update there. now, our next guest is betting big on that san francisco bay area. he has commercial real estate firm that just invested $40 million in an office building saying now is the right time to get in. we bring in greg flynn, founder of flynn properties and the flynn group. greg, thank you very much for being here with us today. we just heard kate give us a report on one aspect, that's become very high profile with regard to the aura around san francisco. you are shaking off some of that. tell us why you think now is the time to get into the bay area. >> i would never bet against san francisco in the long run. it just has too much going for it, from its physical beauty, to its intellectual assets and educational infrastructure. and justculture, which has always been experimental and progressive, but that's needed a lot of

wealth and a lot of attractions over time. and, you know, the city has gone through some challenges for sure. that's been true in the past, and it's always come back, and i don't see any reason why it won't come back this time. i think the recovery in the downtown area is exacerbated by remote work in particular, but the city outside the downtown area is very busy, very vibrant, mostly very clean. there is a homeless issue in san francisco as in pretty much all major cities. it's being dealt with, with more cooperation and determination than i've ever seen before. many neighborhood groups are forming to try to address it. mayor breed is getting more serious about it, her principal rival is very serious about it. and the state government is getting very serious about it. all signs are pointing toward, you know, a tackling of that

issue as best as possible in a modern city. and it only really is a problem in a very small part of the city. >> can you take us through some of the details, not all of them, but the particulars behind why you're putting this $40 million into this particular investment project, what are you aiming to do and what type of properties are you aiming to develop? >> sure. so, you know, it's a real estate investment, so we hope to make money. but how is, you know, by getting the timing right on buying. and then owning in a market recovery. we've done this through three cycles now. the office market in san francisco has always been very volatile. there's wild swings in demand related mostly to technology rand supply always lags it. things throw up great variation in availability, and therefore, rents swing wildly.

you know, they really ramped up before covid, and rents were $90, $100 plus a foot. office value has gone to $900,000 a foot. and now they're back down to the 50s and 40s. values have fallen from $900 a foot to $350 a foot. the institutional investors are on the sidelines. this always happens in the bottom of the cycle. the lenders are out of the market. and if you can, you know, assemble the capital and you have, you know, the nerve and the wherewithal to last through a slow recovery, it's a good time to buy. that's the trough right now. that's the business reason to do it. there's a personal reason, too. i'm from san francisco and i believe in the city's recovery. if i really believe in it, i ought to and am investing behind that idea. a better example of that is the

huntington hotel that we brought last year. it was historically one of the best hotels in san francisco, beloved, iconic hotel. but it had gone into several decades of becoming a little -- it closed in covid, and never reopened. it sits right on top of knob hill. it's a beautiful, physical property. it was just a symbol of the city's decline for a lot of people, the fact that it was sitting there closed. we bought it, we paid a fraction of what the former owner had spent to buy it. and that gives us the ability to invest a large amount of money, over $80 million into it, to make it the best hotel in san francisco. i think it can and will be that. and it is a symbol of the resurrection, i think, of san francisco, that this once great icon is back. i take personal satisfaction in being part of that resurrection and part of the larger process.

>> greg, i know that i'm a california, bay area native myself, so i play close attention to many of these dynamics you speak of. as a final point, you're a business person doing business in the bay area in california. i have spoke on the a lot of folks who say california and the bay area is no longer business friendly. how do you respond to that? >> we do business in 44 states and three countries, and i would put california, you know, low on the list of business friendly in the sense of low regulation, low taxes. but it also has very, you know, strong consumer demand. valuable assets. and, you know, i dare say, most of the billionaires in the country probably come from california at this point. most of the most valuable companies come from california. there is plenty of money to be

made in california, notwithstanding, a difficult business environment. i understand where the regulations come from, because there's so much wealth being created. so it's fair that it gets shared around to address society's most pressing problems, and it's not stopping the creation of wealth. i myself live in san francisco. i'm not going anywhere. i'm going to pay the taxes. i have plenty left over after that. i think other people should see it that way, too. if wealth gives you -- if it doesn't give you the ability to live the way you want to, what's the point? >> greg flynn, a much longer conversation. we'll have to have you back soon. thank you. >> thanks for having me. coming up on the show, tesla is facing more competition in china. we'll headive lto beijing for those details next. "the exchange" is back after this.

growing your business is easy once you know the moves. with godaddy websites plus marketing, you can quickly create a website, and ai will customize it for you. get your business out there and get more customers in here. no sweat... for you anyway. create a beautiful website in minutes with godaddy. you'll find them in cities, towns and suburbs all across america. millions of americans who have medicare and medicaid but may be missing benefits they could really use. extra benefits they may be eligible to receive at no extra cost. and if you have medicare and medicaid, you may be able to get extra benefits, too, through a humana medicare advantage dual-eligible special needs plan. call now to see if there's a plan in your area and to see if you qualify. all of these plans include doctor, hospital and prescription drug coverage. plus, something really special,

the humana healthy options allowance. your allowance. to help pay for essentials like eligible groceries, utilities and rent. even over-the-counter items. and whatever you don't spend gets carried over to the next month. plus, with a humana medicare advantage dual-eligible special needs plan you'll get other important benefits. all of these plans include dental coverage. with two free cleanings a year. plus, fillings, and a yearly exam. vision coverage, including eye exams and a yearly allowance for eye wear. and hearing benefits. including routine hearing exams and coverage toward hearing aids. you'll also get free rides to and from medical appointments. best of all, you'll pay nothing for covered prescriptions, even brand name ones, all year long. and zero dollars for many routine vaccines at in-network retail pharmacies. plus, you'll have access to humana's large networks of doctors and specialists. so, if you have medicare and medicaid, call now to see if there's a plan in your area that will give

you extra benefits, including an allowance to help pay for essentials. plus, no-cost for covered prescriptions. and coverage for routine dental, vision and hearing. a knowledgeable, licensed humana sales agent will explain your coverage options. and, if you're eligible, help you enroll over the phone. it's that easy! call today and we'll also send this free guide. humana. a more human way to healthcare.

welcome back to "the exchange." chinese automaker x is launching its compact ev today. eunice joins us live with this news. >> reporter: thanks, dom. x celebrated its 10h anniversary by launching its mass market model. this is a pure electric hashback coop. the least expensive of the three versions on offer is $16,000. this is half of the cost of the model 3 here. the founder had very high praise for nvidia, because as expected, he unveiled xpeng's own driving chip. the ceo said that the chip completed trial production last week, and that one chip is three times as capable, he says, as

the chips that they are using today. it's designed for ai demand and large models. the brand actually is a hat tip to the importance of ai in cars. he said that mona stands for made of new ai. the big question, whether or not the company is going to be able to sell these cars and really turn around the company's fortunes. x paying the first half of this year delivered about 50,000 vehicles. so compare that to tesla's 838,000. on the q2 earnings call, dom, the management at xpeng said they believe this will be a high volume car. >> eunice, can you take us through the competitive dynamic with regard to demand evs in china? are they facing a similar type of slow down situation we're seeing here in the u.s.? >> reporter: no. i wouldn't say that. i mean, there is definitely a

ton of competition. and so, what a mona m03 will be faced with is a fiercely competitive environment, price war where the cars are slashing prices just to be able to win over the customers here. but people are much more used to and willing to go ahead and buy an ev. and in fact, the founder said that this car is going to be good to really tip people over to decide if they want to switch over to evs, to do so, because with a $16,000 price, why not get an ev and try it here, especially when there's so much infrastructure. he also said that he's hoping to target those who are part of the younger generation, maybe this is the first car. they don't have the kind of legacy experience that they do in the united states. so people here are much more willing to try different brands. xpeng is a brand that people do know here. finally he said this is a good car for somebody who might want

to have a second vehicle, who has a larger family and wants to really get something that's simple, that they could have their spouse use while they go off and use the main car. so, he's trying to really position this car as one, again, as i said, it's mass market. >> all right. eunice yoon in beijing with the latest low-cost evs in china. thank you. we'll see you soon. coming up in the show, we're trading nordstrom and box, chgeinel one in today's earnings exan. that's coming up next. we'll be right back.

do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance.

gina costa... looking simply stunning... what's this? she's opening her fidelity app.... to buy that stock... with no fees or commissions... because what does gina got? gina's got the look. that never gets old. talk about easier investing. ♪ still some big names yet to report. we have box, sentinel one and nordstrom all on deck. here with our trades is jeff killberg ceo of kkm financial and cnbc contributor. we'll start off, jeff, with box. morgan stanley difficult demand backdrop and increasing competition and see's box new ai offerings as a catalyst. what would you do with box? >> dom, i don't own it yet but i think it is a buy. if you look from a technical perspective, above 50 day. it's up 1% today. it has ability to move up and retest the $33 value. it's a $4 billion market cap

company. i think it has the ability to move higher. drop box is a competitor. i own neither, but i do know there is value here in the cloud storage. i think it's a theme that you can buy with momentum. >> there's the box trade. box ceo aaron levie will join "the exchange" tomorrow. next up, sentinel one, on pace for third-straight month of gains. wells fargo upgrading this month on strong demand picture after the crowdstrike outage. jeff, what do we think about sentinel one? >> there's a lot of emotion in the name. s is the ticker symbol. down 9% year to date and certainly since crowdstrike had its box software update, it gained market share. let's put it in perspective. crowdstrike, $65 billion market cap. this is about 7 million market cap. i want to be a seller if you own it. had a nice move higher. at the end of the day it's 67% off all times high. oh, there's another thing, dom, it doesn't make money. expectation is not to make any

money or lose any money. but it doesn't gain any money. the ceo has been very vocal trying to capital on crowdstrike. i want to stay away from the strike. >> nordstrom under some pressure ahead of its results. maintaining a hold as both consumer demand and nordstrom status as a public company are uncertain. what would you do with nordstrom? >> a buy. a different clientele. still 40% of its all-time highs. you look at macy's and dillards, they got cream crackered. different clientele, gives you the opportunity to buy nordstrom. consumer is still showing growth in that dem graph. >> thank you for the three trades very much. we'll see you soon. that does it if r here on "the exchange." markets pulling back for the dow from the record highs from yesterday. we'll see you tomorrow. ash® 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]

♪ good afternoon, everyone. welcome to "power lunch." alongside contessa brewer, good have you here. i'm tyler mathisen. coming up, a major c suite turning sour on harris. mark zuckerberg says the white house pressured facebook to remove some covid-19 content. coming at a bad time for the presidential hopeful as she pitches herself to the business world. plus, our power house road trip continues. today we move north from miami to syracuse, new york. we'll explain why that are