♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪ good afternoon, everybody. welcome to "power lunch." it's nvidia day. the second biggest company by market value after apple ahead of microsoft for now reports results after the bell. the stock has been the ai darling of 750% since the be beginning of last year. but the question, as always, can it possibly keep it up. >> and check out shares of super

microdown 23%. the company say it is will delay filing its annual report with the the s.e. kresmt add losses when short seller warned of glaring accounting red flags at the company. nvidia isn't the only company reporting earnings. several out with numbers. nordstrom, chewy, foot locker and abercrombie and fitch getting hit hard. they are off almost 20%. >> there you look at the broader markets. they are down as well across the board. the nasdaq down 1.5% as we wait for nvidia. while expectations for that company are high, some are worried that it won't match the hype. seema moedy has a look at the possible negatives. >> exactly. there isn't a big bear case, but the most pressing question is the size and magnitude of nvidia's blackwell delay.

that's the next generation chip. they are modelling in anything longer would be a negative. that's why guidance will be key as well as any comments from the ceo on supply given its heavy reliance on supplier. beyond that, an update on gaming. zit analysts write it could drive stock lower if it shows a loss in market share. earlier this quarter, the competitor posted a 59% year over year drop and second quarter gaming sales. its weakest division. pointing to lower chip sales for game consoles and pcs. the bar is high. nvidia is trading at 42, higher than the evaluation of 28. as to how the stock could react, they followed the last six earnings report and found that the average one-week return is nearly 12% up. we'll the wait for the results at 4:20 p.m. >> if the past is the present, it's the future, it looks like a nice little week for nvidia. we'll see. stay right there.

with no sales on wall street and 48 overweight ratings, most are bull ish on the chip maker including our next guest who has $150 share price. pz good to have you with us. seema mentioned theen issue in e report today. that's the launch of blackwell. and whatever the company says about that blackwell being a next generation chip. what do you expect here? what would be good news? what would be less good news? >> nvidia doesn't give granular detail on the earnings report. what they said in the past, blackwell starts the ship in the second half of this year. the most important flavor of blackwell, if you will, is the gb 200, which is the most powerful version that's going to go to hyperscalers in the beginning of next year. there's been all sorts of

discussion in the supply chain of that being potentially delayed, but our view on that is these are very complex product ramps. they are coming out with new products every year. we have kind of talked about that a little bit of the sausage making of semiconductors, where not everything goes flawlessly. nvidia guided for that product to be out in the first quarter of the year. and we still think it's on track for that. we expect nvidia to basically reiterate what they said before with respect to that. >> let me ask you a question that's philosophical. does nvidia have a lead or a mote or does it have both? >> i think it has both. certainly, they have established a lead within overall ai, where their biggest mote is actually one in software, where esp especially for training models, most of the models are trained

using basically proprietary software. then on top of, that the networking part of the business, which nvidia got by their acquisition many years ago, also provides a competitive mote because networking is becoming a much bigger driver of performance and nvidia is the only company that has that in house. >> even with nvidia's leadership, we're expecting a big jump in revenue and earnings, but we're expecting gross mar jirns to decelebrate. is that because of expenses attached to blackwell? >> it's really a function of mix and with blackwell coming out, some of the costs associated with the launch of that new product. but at this point, i think people see a good revenue number. if they see good progress on blackwell into next year, that's

what's really important for the stock. and the important thing is blackwell, we believe, drives as much as 50% year on year content gain. and nvidia ease business model has been we charge more for the product because the product costs more, but we give you multis of that in terms of performance. so it's a little bit of a win-win. the customers get much performance and nvidia is getting higher revenue. that's what's been exciting about this stock. that's what's played out over the last two and a half years or so, where the biggest driver of nvidia revenue has been the content fper chip going up. that goes up with blackwell next year. assuming that launch goes well, that's why we're bullish on the stock into next year. >> goldman sachs has done analysis that indicates hedge funds and institutional in investors are selling out of big tech and ai. i'm curious with the outflows, does nvidia have a lower bar to reporting its earnings?

is any good news going to be outsized? or because this is seen as the bell weather for not just other ai or other chips or tech, but the markets as a whole, are investors are going to be nitpicking any detail, any little speed bump ahead to focus on? >> it's obviously a very well-watched stock now. the stock is going into the report pretty close to its size. i think people will be looking at that pretty closely. in terms of people selling out, it's been a great stock over the last two years. i can understand why some folks would choose to take some money off the table. and that's happened in the past. stocks plateaus. as you get visibility what's coming next, but really what's important is that's what's coming next. blackwell coming and just as importantly, will the hyperscalers still continue to spend on ai as they have.

and with the july earnings season, we heard from google and amazon and meta, the clear consensus is they will continue to spend. as long ass t that's the case, that's a good setup into next year. >> the vast majority of analysts have a buy rating on the stock. what are you looking for in the color commentary? >> that's a great point. it's not just about the numbers. the tone of the ceo on the call, how he describes the delay of blackwell, does he show a lot of confidence being able to offset future delays in blackwell, that will be key. >> thank you very much. thank you for joining us as well. as the clock ticks down, we want to dig a bit deeper into what it could mean for the broader market as stocks slide to session lows. the dow jones is off 348 points. let's bring in the chief

investment officer at press it capital. good to see you. for you and your clients, how much is riding on what nvidia has to say about its future? >> the fact is that nvidia has become essentially a belle weather for the s&p 500. but at the same time, contessa, what we're hoping for and what we expect is once the fed starts to ease, that should open the -- pave the way for more of a broadening of the market. keep in mind that nvidia and the mag 7 led the s&p dramatically higher in the first half of the year, but really since the middle of june until now, it's been a market performer as more and more investors are anticipating rate cuts. >> how are you positioning your strategy for tomorrow depending on what happens with nvidia? is this a story that you're already telling clients that the

rotation away from mag 7, away from ai and big tech has already begun and should continue? >> that's really the narrative. we're not going to position the portfolio day-to-day. with 55 billion, it's tough to do. i will say that if you look at the big drivers of return over the last two years, it's really debt to ebita. the higher the debt you have to the cash flow that you generate every year, the worse you are. so if you look at large cap stocks between 4 and 5 times their ebita in terms of debt. small caps, 4 to 6 times that. the mag 7, less than 1 time. these companies generate so much cash, they could pay off their debt in less than a year. that's really been a benefit to those companies as rates are high. once the fed starts to ease, the

10-year treasury moves down in sympathy. financing costs, who is that going to benefit? the higher market sectors. >> what is spooking the market today? nvidia? something more fundamental than that because it's not just the tech stocks like super microit's the lululemons. they all have specific reasons i suppose behind them. what's spook ing the market and looking at the dow there, it happened at 11:00. boom. things turned. >> the only sec torts that are up and sol of the bonds sector, but i did notice that tips is outperforming fixed, which would suggest to me that inflation expectations perhaps are rising.

the underpinnings are high. perhapsthere's some inference of strength that is causing some concern particularly on the spending and inflation sfront. >> it's so interesting that you mention the consumer confidence because we got reports from bath and body works and foot locker. what we were hearing from a lot of these retailers is choppiness in the economic ma macroenvironment. we're hearing about customers searching out for value. in fact, this is why nordstroms, which beat expectations, says we're doing really well at nordstrom rack where we have an off-price brand. how much is the consumer, one, is this a solid story? or is this a retailer company by company store?

and two, as we head into fall and past the back to school shopping, how much does consumer spending have to do with the overall story? >> i think consumer spending is really key to the overall story. but let's look at this it this way. the highest economic income earners in this country account for roughly 40% of all spending. so what drives discretionary spending, it's housing prices and equities. we're at all-time highs. there's certainly a lot going there. walmart beat expectations not because their average consumer came in and bought more goods, but they are start ining to mov

into that category and shopping at walmart perhaps avoiding grocery stores like publix. >> let's talk a little bit about the interest rate scenario. i was reading in the notes that you point out that during 11 interest rate cut cycles, the six that were associate d with recessions were associated also the with the declining stock prices. in cases where the rate cuts were not associated with recessions, you had a rising market. what do you expect this time? >> i don't see a recession. not from our perspective. the economy is growing at 2-plus percent. the unemployment rate at 4.3 still remains in the 15th percentile. so very good solid jobs market. that doesn't seem like the ingredients of a recession. so obviously, we're going to be

on the lookout for any kind of weakness. but from thissers and spective, our conclusion is this is a rate cut cycle that stock and bond markets should feast on. >> that sounds good. jack, thank you very much. after the break, lots of promises were made on the campaign trail, but how much would they cost taxpayers if they were put into action? one report says comparing the trump plan to harris plan, details, we'll show you the difference in dollars, next. clem's not a morning person. or a...people person. but he is an "i can solve this in 4 different ways" person. you need clem. clem needs benefits. work with principal so we can help you with a plan that's right for him. let our expertise round out yours.

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the trump and harris plans will both add to the deficit, but for trump, the numbers are far larger. new analysis from the budget model shows the full cost of trump's economic plans would be $5.8 trillion over the next decade. that's nearly 5 times more than the cost of hairs' plans, which they say would add about $1.2 trillion to the deficit. when it comes to the economic impact, harris' plans come with the higher cost. gdp falls under both scenarios because of the weight of the debt, but for trump it's a 0.4% drop. the cost is so high for trump partly because he's not endorsed any pay fors to offset his tax cuts for social security and corporations. now trump talks about using tariffs to raise revenue, economists say retaliation could outweigh any benefit. for harris, there are substantial costs, the biggest one expanding the child tax

credit would cost $1. trillion, but raising the corporate tax rate 28% would raise $1.1 trillion sorks much more even there. all of this is contingent on congress, which the controls the pursestrings. if congress blocks the attempts to raise taxes but approves the spending, costs here would rise. but it does show that harris at least so far has the plan with the the smaller impact on the deficit. >> it's interesting because the analysis probably carries less weight than the promises for individual voters. when it comes to corporate america, i was covering a lot of earnings calls after the trump tax cuts were put in and what heard was a lot of cheering from corporate leaders talking about how it improved their bottom lines. when harris is trying to win over the nation's companies, it seems to me like raising the tax rate is not going to be a big winner for her. >> certainly not. trump wins on that issue. i do think what's interesting is you can see the impact of that

and the economic impact section. on the gdp, trump sees a slight rise, but then because he has no pay fors here, the size of the debt becomes so much that it weighs down, it outweighs any impact of that. so harris is banking on a longer game here. she's not trying to win over companies. she's not doing much they really want to see in terms of tax cuts, but she's playing this longer game in saying that the economy perhaps is going to be a little bit better because the debt is smaller. >> megan, great to see you. thank you for the great reporting. up next, navigating volatility. power lunch is back after this.

welcome back to "power lunch." a quick check on the markets. we're seeing the dow off by almost a full percentage point. s&p 500 has dropped a percent. the nasdaq is down by a percent and a half. it's a turn around from what we saw what the markets opened this morning. in today's market navigator, crude oil prices declining for a second day in a row after a sharp rally earlier in the week. the initial spike was on potential for a large disruption in supplies. there's been a big political

dispute happening there. and we saw some oil rise. now as you can see, it's coming down. what's next for the much more volatile commodity, jeff killberg, founder and ceo of kkm financial. he's also a cnbc contributeor. talk about how you're navigating the swings. >> you're absolutely right. there's a lot of inputs now to really measure crude oil. if you look at the october contract it's had a range about a month, but we're at the lower end of the range. you're absolutely right to bring up libya. that should move crude higher. the chinese demand or lack of demand seems to be weighing on the market. there's a correlation to the effquity markets as we await nvidia earnings. i see the opportunity to potentially be a buyer here. i bought crude oil future this is morning. in the october contract, i

bought it at $74. i want to see this move to $79. that's my short-term target. if we see equities weigh upon the correlation to crude oil, you could get stopped out at $72. i'm risking $2,000 to make $5,000. >> why do you like going with the futures instead of going with xle? >> when you talk about xle, which is a great etf, up 8% year to date. the futures contract, it's more of a high-powered tool. if you think of a high-powered tool, this is a sfophisticated tool that institutional invest torts used for decades upon decades. now the average investor has access to futureses. it's 24-hour access. so if there's a move and you have an order in, we do see something come out of libya and a price moving higher. i will get filled on that potential sale order versus hoping to get out of an etf

during the middle of the the day. so they all work together, but this is a sophisticated tool that allows investors to mitigate risk and speculate to crude oil. >> you're risking essentially $2,000 to make $5,000. back to the movement in this upside or what you see is upside, you have middle east tensions certainly persisting. the issue of libya and whether it's going to cut back is not over. and then the chinese demand is a big factor here. i heard commentary today about the economy in china and whether consumers are pulling back. so why are you bullish on oil and the demand factor? >> you're absolutely right. the joer arching theme in 2024 has been china and that question mark. let's remember opec. very big opec, the oil cartel, they have predicated all their budgets on crude oil between $80 and $90.

so i don't think it has the ability to stay down much longer. that's why i see the move higher back up to $9. >> we appreciate that. thank you. >> always a pleasure. ahead, our power house road trip continues. we're heading to st. louis where houses are flying off the market in an average of six days. it feels like there should be a song with this. we'll be right back. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk— our team of passionate traders who live and breathe trading. ♪♪ and sharpen your skills with an immersive online education crafted just for traders. ♪♪ all so you can trade brilliantly. ♪♪

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welcome back. we have already hit miami. we went to syracuse yesterday. today we're out in st. louis, missouri. one of my favorite towns, by the way. my friend ben clark lives there. it's beautiful. st. louis is one of the hottest real estate markets in the country with many houses flying off the market in less than a week. let's go to st. louis. it's time for first for fewest days pending at six and the median sale price is just under $275,000. affordability is at the forefront for buyers in the st. louis market. let's bring in kelly lasiter to

help us understand the state of the market in st. louis. i love st. louis. it's a really, really livable city. how is inventory? is it low? is that why houses are just selling so quickly? >> yes, currently, we're running on arch about two months inventory. so that makes our market definitely a seller's market. that is why houses that are on the market are flying off so quickly. >> what is the average -- i guess belisted the median price. what's the change in median sale price over the past 12 to 18 months? how much more would you get today? >> it's probably pretty stable because we have been an extremely hot market for the last two or three years. i would say in the last couple weeks, there's been a bit of a slowdown. i think that's just the natural

cycle of the real estate market where we slow down a little bit when it's back to school time. >> august is kind of a slow month because people want to be where they are and don't want to be closing if they have children. show us what roughly a million dollars would buy in the st. louis area? it's got a lot of diversity in terms of housing. you can look downtown in a loft, live out in the country. this one is on a golf course. tell us about it. >> this is. so when you talk about affordability and what you get for the money, i watched your show the other day where you had miami in. it was 1600 square feet for a million dollar house. here you see 4,600 square feet, 4 bed, 4.5 bath, this house is spectacular. it's fully updated, hardwood floors a chef's kitchen, and it's stun ning.

it sits on the 2nd hole of a prestigious golf course in a western suburb of the st. louis metropolitan area. >> so but in this suburb, let's say you had to work in downtown st. louis. how long would it take you to drive from that house downtown? >> so that house to downtown actually is probably only about 25 minutes. becauses it's right off of -- what's really cool about the st. louis metropolitan area is it's a very drivable area. so that house is probably 5 minutes from highway 40, which is a straight shot to downtown. >> i thought you were going to tell me an hour and a half. i would have believed that. like you can find that. it's a beautiful house. what else is the draw to st. louis? if people are looking for other options, what's the big draw? >> i think honestly there are -- i would say the top two draws of

our area, number one, affordability. we have helped people move here from all across the country. we have had clients from arizona, texas, florida, west virginia, as far away as hawaii. to a person, they are blown away with how much house they can get for the money. i think second, to your point, the diversity of styles that we offer. i think you touched on this earlier in the segment. you can get a loft in downtown and you're living in the middle of an urban upbeat, fun, active area, and then you can come a little west and you can get a house on acreage, a private country estate. we have 55 plus communities, lake communities, we have golf communities. st. louis just has so much to pooffer. >> let me ask you about the new changes to the way agents are compensate d and the fact that buyers now have to compensate

their agents as the sellers always have. are you seeing an impact? >> not really because the st. louis market in the missouri market as a whole, we don't really have to change the way we do business. it's just a disclosure issue. so typically in our area, the seller would sign a listing agreement and agree to pay 6%. part of that 6% was disclosed in the listing contract would go to a co-op agent, if there was. the only thing that we really have to do different now, we have to be sure we're educating our sellers, one, that there's a potential to share some of the commission that we charge to a buyer's agent, but we're not charging the seller more. we'd potentially have to share or pay a buyers agent. buyers have to enter into an agency contract with their buyers agent that clearly state s the amount the of compensation that agent expects to get when they sell a house.

>> that's great. >> how many cardinals games do you go to? >> not enough. my son plays baseball, so i spend more time watching him play than the cardinals. >> how old is he? >> he's 18. he just graduated from high school. he's going to be playing baseball at the st. louis community college. >> my son is 18. just graduated played baseball for month claire high. i'm going to miss those games like you have no idea. i'm sure you'll miss them too. >> i'm going to watch as many as i can. i'm so thrilled that he's going to be local for at least two more years because i don't know what to do when i don't have baseball games to watch in the summer. >> man, those games can go a long time. good to see you. >> you too. thank you so much for having me. it was a pleasure. >> good luck to your son. >> thank you. i appreciate that. let's get to kate rooney for

a cnbc update. the man who attempted to kill president trump searched for information on the democratic and conventions and trump before opening fire at that rally in butler, pennsylvania. fbi officials told reporters today that suggests the trump event was a, quote, target of opportunity. the bureau says it found no evidence that the shooter had any coconspirators or was d directed by a foreign entity. japanese authorities issued an emergency issue. a typhoon triggered a landslide that left one person dead and several others injured. forecasters say that storm is expected to bring high winds and up to two feet of rain in some areas over the next 24 hours. and according to a new study published today, it's never been safer to donate a kidney. researchers say the risk of death from donation has dropped by more than half in the last ten years while the risks of death have always been low, it

points to advances in surgery and care that have reduced the risks even more. back over to you. >> that's great for those on the waiting list. thank you. shares of chinese ev makers are lower across the board after canada is set to slap a 100% tariff on all electric vehicle imports from beijing. we will get a live report when "power lunch" returns. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business.

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how we get there matters. ♪ ♪ shares of china's lirks auto itumbling down 17% on pace for its biggest drop in nearly two years after reporting a profit decline on higher expenses. phil has a look at the struggles of what we're seeing from these chinese ev makers. >> it's what i think a lot of people expected when you take a look at the quarterly results. we're going to talk about byd in

a minute. it also reported quarterly and first half results. you look at this and say net profit of $1.9 billion. that's up 24% compared to last year. revenue increasing by 16%. but it's not growing as quickly as it has been in previous quarters. so perhaps that's a little bit of why people are maybe pulling back a little bit on byd. you see the stock is down just under 3% on the day. first half sales up 27% year on year. they are not number one worldwide in terms of pure electric vehicle deliveries. tesla remains number one worldwide. look at who the leaders are. we're still updating the first stats. but generally speaking, these are the leaders when you're looking at global ev sales. which by the way were up 20% this year in the first half compared to 2023. quickly want to talk about li. its q2 net profit, $154.4 million.

when you take the chinese wan and convert it to dollars with revenue increasing 11%. what you're going to see from the auto makers, they are growing, but their market is slowing down at home, which makes it tricky for them. they are increasingly depending on sales in foreign markets, europe has been red hot for them. southeast asia is an area that is growing not just for li, but byd. all the chinese ev companies. that's going to be an important focus for them as tchinese markt becomes not just saturated, but it's slowing down in terms of ev demand, in terms of the pace of growth. still growing, just not as quickly as previous years. >> i mentioned it earlier with my oil guest, but the concerns over chinese demand, consumer spending is percolating in a lot of different industries now. is there a reason why that might hit the chinese ev maker harder than it is tesla or some of the

other ev makers? >> i think it's going to hit them all equally. if you want to know the truth, when you look at the chinese market and talk to the people who spent a lot of time in that market studying the various companies, talking with the executives there, remember, a big part of the demand in china when it comes to electric vehicles, it's been fuel led by government incentives. and whenever the government pulls back, you see the demand slow down. it's no different there than it is in other markets. you pull back, people are not going to be as likely to buy. granted, china's further ahead in terms of ev adoption than almost every other market in the world. but it still is dependent to a large extent on whether or not there are incentives. >> phil, thank you. a quick check on the markets now. stocks are lower across the board. the nasdaq the worst of the major averages down more than 1.5%. industrials lost 353.

let's turn to the bond market now. rick is in chicago. >> yes, tyler. we had another very successful auction yesterday was 69 million two-year notes. both auctions went quite well. one of the reasons is september 1th and 18th. the fed flagging that they are definitely going to be lowering rates and the market is very sensitive to that. now something interesting happens when you have auctions. look at the 2-year and 3-year securities. we auctioned off 2-year. the issue is that yesterday we had an old year. we had a brand new one call ed the on the run. the difference between those two is 4 basis points. you see on that chart, the yields drop, but they really didn't drop. the current on the run is hovering about 1 basis point up like all the maturities.

that rollover is something that we need to pay attention to because what it did was if you look at the spread, it pushed it about 4 basis points more towards flat, less inverted on that chart. now phil was talking about china and demand and evs. everybody seems to be looking at china lately for a variety of reasons. let's look at their juan. it's hovering at the lows of the year. one of the main reasons is the chinese tenure, which was created in 2002. look at the chart. it's not on its all-time lows. it's only about 4 basis points away. and the chinese aren't really happy about it. as a matter of fact, those yields are dropping because many investors believe china's economy is slowing rather dramatically. we want to pay very close attention to that. along with the pet so. there's political issues in mexico. this country we may have a lame duck president, and want to pay attention to how markets respond

to activity of the politicians that are basically on their way out. back to you. >> rick, thank you. let's talk about the shares of chewy. surging on big earnings. net income up from a year ago. we'll trade it, next.

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welcome back, everybody. time for today's three stock lunch. there's been a lot of talk about nvidia, but as we await results, let's take a look at some of the other names reporting today. here with our trades is chief investment strategist at er shares. up first is salesforce, which could also offer insight into the i.t. spending environment, as well as the ai appetite. a critical report for the company after the stock tumbled 20% following its previous earnings results, reporting a challenging economic environment. what do you say about salesforce, eva? >> we have it as a hold. it's interesting to see what's going to happen today with their earnings announcements. most investors are focused on

their very high ai growth expectations built in. we'll see if the company delivers. but most importantly, this is a company that has been flat in terms of stock performance year to date, but their fundamentals have been nowhere like flat. and i think the company is not receiving the respect it should. their revenues have increased by five times since covid levels and their profits have increased 15 times. these are great statistics. from a valuation point of view, their enterprise value to ebita is 25 compared to 50. it's going to be a significant day for them. >> next up we have chewy stock, just soaring after beating profit estimates, beat them by a wide margin. the company is offering upbeat guidance, shares up 77% in just

three months, and up 15% today, almost. eva, what's your view on chewy? >> we have it as a buy. we actually own the stock and we really like them. the company turned the corner in terms of profitability last year. they used to lose up to $300 million. they're now making $125 million. it's always very exciting for us investors to see a company move from being unprofitable to being profitable. we believe their business model has been verified, there's proof of concept here. their revenue group is averaging 11% per year, five times the rest of the category. and they have widened their margins by an extraordinary 9%, from 20% to 29%. it's also a bargain in terms of valuation with the enterprise value to revenue .9%, compared to 1.3% for the rest of the category. there's proof of concept here. the value proposition has been verified. people are buying more and more

pets. and we see things continuing this way in the future. >> very interesting. our final name is kohl's, out this morning. a sales miss here, however, forward guidance was strong. it's been a mixed bag for retail amid a weaker consumer environment. kohl's down 30% this year. is now a time to buy it? >> no, we have it as a sell. the revenue growth has been negative in five out of the last six years, and their earnings from continuing operations, and that's the most important statistic, has been on a steady decline in the last ten years. the revenue outlook was updated from negative -- from a range of negative 2% to 4%, to a new range of negative 4% to negative 6%. so management is pessimistic. and i think the core business model here is flawed. we see other retailers going through the same issues as

e-commerce is getting bigger and bigger. we are not optimistic in terms of the long-term future for the company. if it's a buy, it will be a short-term buy. but we have it as a sale. >> we thank you, as always. you know you stuff and deliver it in a fun way. we appreciate it. coming up, joining the trillion dollar club. warren buffet and berkshire hathaway briefly becoming the first american company to hit the $1 trillion market cap. we'll be rhtacig bk.

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welcome back. quick check of the markets. stocks off the worst levels of the day. the dow jones down now 255 points. we'll keep our eye on that throughout the day. big turnaround from what we saw earlier. we've got about two minutes left in the program, a little less. several more stories we would like to tell you about. warren buffet's berkshire hathaway briefly reaching the trillion dollar market value today before pulling back just a bit.

it's the first american company outside of the technology sector to do so. you've got apple, microsoft, nvidia, maybe a couple of others, facebook or meta. six firms have met that level before. amazon among them. berkshire knownfor its old economy focus, as the owner of companies like geico insurance, dairy queen, big railroads as well. of course, the cash pile is sitting on $277 at the end of june, sparking worries among some investors that buffet might see something coming down the pike. key retailers plummeting after earnings reports, despite decent results. abercrombie saw revenue grow but warned of an uncertain economic environment. shares off 18% on the day. foot locker, its first same store sales growth in six quarters. it reported an adjusted quarterly loss but beat expectations. bath & body works trimmed its forecast due to economic

uncertainty. you're seeing shares down 7%. >> really, a lot of sort of plummeting stocks in retail. >> additionally what you see is even with nordstrom, which the stock went up -- >> and it had a good report. >> it says that customers are looking for value. >> folks, great to be with you. >> nice to be with you. >> thank you for watching "power lunch." >> "closing bell" starts right now. welcome to closing bell. i'm scott wapner at the new york stock exchange. what dan ives calls the most important report for the year for the markets. he'll join us in a bit to explain further. take a look at the stock. we're a little more than an hour away from those numbers. the outlook most important, stocks have been down all day about 2%. elsewhere, a pretty defensive day as well for the majors and they've been red throughout the session. we'll watch it over the final stretch. all that is at