welcome to "power lunch." alongside deirdre bosa i am jon fortt and shares of intel jumping today more than 7% as the company looks at options to turn itself around. during this year's chip hoopla the stock lost more than half its value. we'll ask our trader if intel can regain the former glory. >> we've been going across the country talking to local agents asking whether the prospect of lower rates is unfreezing the market and look back at the million dollar homes we've seen along the way. first let's get a check on the markets. you can see the dow industrials is under water by a quarter of 1%. the s&p 500 on the flat line. the nasdaq the outperformer by a smidge. it is a slow ahead of a holiday weekend. >> yeah. while the dow might eek out a

little gain for the week, s&p 500 and nasdaq are solidly in the red, so we're heading into september which is typically a weaker month for stocks anyway. and with a fed meeting looming. let's bring in morgan ike santo a look at this market setup with two hours left in the trading month. >> yeah. going out kind of quietly and steadily for the month of september -- the markets holding serve for any u.s. open fans. 5600 is where it sits where it sat for the full two weeks. through nvidia earnings, obviously, we got through the pce inflation number today and i've explained this path we've been on as kind of losing it faith briefly in the possibility of that soft landing scenario in early august and then other attendant liquidation events with the end carry trade and recovered the faith that goldilocks environment is still plausible. not necessarily a sure thing or done deal, but right now, it

appears that the fed will be easing in september into a still sturdy economy. take a look at the volatility index over six months. massive spike. what we've lost almost all of it. all of that intense activity and volatility move has trained away at this point and there has been, even though the s&p has been flat for a couple weeks a lot of shifting below the surface. if you look at the nasdaq 100 relative to the equal weighted version of the s&p 500, this is a six-month chart. tortoise and the hare. the nasdaq 100 races ahead, well below its highs, steadier equal weighted s&p 500 pick up the slack and so far been comfortable for everybody. one thing i mentioned going into september, seasonal headwinds, we have a fed meeting and a big jobs number, a good economic news is probably necessary to keep the market from losing its nerve again about the possibility of this soft landing. >> volatility spike was something else. thanks, mike. as investors return their focus to the fed how will

today's closely watched inflation data impact the fed's next move and the market going forward? our next guest expects a 25 basis points cut from the fed at the september meeting. joining us is david smith, chief investment author at rockland trust investment management group. you expect this cut, but overall my question is, can the market overall kind of stay things expensive relatively speaking and keep getting over these freak outs. >> first of all happy labor day weekend to both of you. it will be interesting to see how the market reacts to the 25 basis points. we are pretty confident, obviously, like most market participants are at this point in time, that we're going to see a rate cut and i think it's 25 basis points. i'm actually a little concerned if they did something more aggressive and moved 50 basis points because i'm concerned the market participants may view that as the fed seeing something scary in the economic data and moving aggressively to get in

front of that. i think 25 basis points is pretty well in the cards and i would expect that will be the first in probably a series of 25 basis point moves as we progress through 2024 into 2025 settling in the 3% range at the end of 2025. >> next big data point for the fed may not matter for the september meeting but further out the non-farm payrolls we'll be getting next week. what do you think we're going to see there? what would make a difference to the fed's outlook? >> yeah. like you said, i don't think it's going to have a real effect. i think it pretty much telegraphed they're going to move 25 basis points. that may have broader implications for the next meeting and whether or not they'll move incrementally at the next meeting or skip a meeting and make a move in the following meeting. so the september 18th i think is pretty well baked at this point in time. they'll continue to monitor the data, the jobs data, the economic data, obviously, today's pce was a positive numbers at 2.5%, so lots of data

flowing between tnow and the net meeting and taken into account as they assess how they're going to move forward. the only way that may impact the 18th is the language coming out of the meeting and what fed chair powell say they will do at the next meeting. >> feels weird to keep looking back and forth at the fed as investors try to figure out what stocks are going to do. at what point do you think the focus can go back on to fundamentals and the question of whether the overall economic health demand the consumer strength, perhaps, is such that you can trust that companies are going to be able to continue to do well? >> great question. it feels like we've been focused on the fed now for a better part of three years. i suppose if we get to rate environment that is neither aggressive or contracting that we'll probably be at a point where then we can just look and sort of say, you know, status quo the economy is going to do

what it's going to do. for now the fed has been aggressive moving interests rats up to get it under control and they get into a pattern of reducing rates i don't know how aggressively but we'll be in a period of time where rates will be coming down. if i'm correct by the end of 2025 we land at that 3% range and the economy is chugging along at the 3%, 2% range it's at right now i think then we'll be able to focus on fundamentals with the expectation that fed is out of the game. that's to be determined. we'll see how things play out. >> if we get the 25 basis points cut, slowly incrementally from there, how does that change your investment strategy. >> do you look at some of the smaller less profitable players over the winners that we have seen over the last year? >> yeah. so as mike just said, we're starting to see broadening and i think broadening is a healthy thing and we get to the scenario we have the soft landing, other companies will begin to participate and i say participate, not that they

haven't been going up but perhaps begin to outperform. it's been a challenging market for those who are invested broadly and don't concentrate in the magnificent seven or f.a.a.n.g. or top ten technology companies. i think that what will likely happen in a more moderate type of economic environment where, perhaps, interest rates are coming down and people look at evaluations of some of those ai plays and says there are some other interesting things going on here. if the economy gets going and stays at a compelling rate, that these companies will grow their earnings in the low teens kind of level and that's pretty compelling for some of them who have multiples that are pretty low relative to the market and sectors. >> speaking of, this dovetails with what mike santoli was telling us about, your au bullish on honeywell and chub, so much that you own them all. what do they have in common. >> one of the things they're growing earnings at double-digits and that's compelling for us. in the case of honeywell we love

the fact it's an industrial with a broad end market, no concentration really there and that allows us to feel comfortable, even if one or two of the industries they serve has some sort of glitch there's another growth from other industries that will offset that. the double has a low double-digit earnings rate and 2% dividend yield and opportunity for multiple expansion. chubb falls in the same category. it's a financials company, but it's also a teens based grow, low double-digits anyway. 2% dividend yield and on top of that we think there's opportunity for multiple expansion in that name. largely based on the strong pricing trends we're seeing in property casualty insurance. veeva is a tech name supporting the health care industry and we don't have a dividend yield and we don't have -- we have a higher earnings growth rate but what we think is a very large opportunity for multiple expansion in that name. >> always appreciate the details. david smith from rockland trust investment management group,

thank you. >> thanks. have a great weekend. >> as you've been hearing us say, the fed's favorite inflation gauge coming in as expected. bond yields higher following those numbers. to chicago for more bond market reaction. rick santelli standing by. over to you. >> yes. and you know what, keep an eye on the twos, tens spread it's getting can ever closer to zero and start steepening. jim is my guest today. jim, real quickly, what do you think of the pce numbers today? >> they came in as expected. there wasn't really much of a story to talk about at 0.2 and 0.6. that's why the market had little move afterwards. >> am i wrong to think we're never really going to see 2%, 2.5 to 3 is the marching orders response we get back to the fed but probably not the main issue they use to pull the trigger on the easing? >> i agree. i think inflation is going the big story and stay sticky around 3% as well. the last mile they keep talking about -- >> if they ease a quarter point

it starts to pop up a little bit they're going to have issues there. >> exactly. you know you cut rates and if the data doesn't go the way you think it's too strong or inflation pops up there could be a bad reaction in markets. >> let's talk about the elephant in the room and you've been writing about this, we had that big revision in non-farm payrolls, 850,000. >> 818. >> and ultimately many think it should have been much lower. what's going on and how does that tie in with immigration. >> >> the population of the country has been exploding higher because of immigration. all surveys have some basis the level of population growth. and that's what's throwing off both the household survey, the unemployment survey and the revisions. the revisions look at tax data which is basically not immigrants, and they came to the conclusion we had 818,000 less jobs but might have been 300,000 less jobs, 500,000 people took jobs that people under the table, that people used to have that were paying taxes.

>> when i siphon through this here's what i think. seasonality is already not very good in these numbers and it's getting worse. covid changed so many things, a, b. certain states i just don't trust their numbers. b, nobody knows how my migrants or immigrants are coming across that border so i don't know how they can define these numbers. would you agree did. >> yes. the reason is we talk about the labor market and think we're counting job. we're doing surveys and asking people how many they employ, making assumptions and weight those by the changing population growth of the country that's why the employment rate is going up and the household survey is going up and a lot of the data is throwing us askew and we all look at it and sape the labor market is weakening. it might not be weakening. many more people have jobs, more money, that's why consumption is up and that's why inflation can stay sticky. >> what you're really saying is, basically the worst aspect of the labor market, what is the

banner, poster child of the weakening, is the rise in the unemployment rate might be the riskiest aspect to bet the ranch on? >> i agree. none other than claudia sahm with the sahm rule said be careful because of the increased labor supply. >> where does that increase labor supply come from, it's coming from immigration. this data was never structured to fit with an exploding pop plapgs growth like we have now and that's what problem is. >> we're almost out of time. if the jobs report next week shows that the unemployment rate holds or drops will that make any difference on september 18th ease? >> only to the extent that fed would go 25 instead of 50. 50 still has about a 35% chance of them going. >> excellent. jim, it's always a pleasure. we love to do floor hits together. deirdre, back to you and have a wonderful three-day weekend. >> rick, same to you, both of you. thank you so much for that. still to come, intel going into power saving mode.

lululemon cramping up and walgreens cannot get out of the red. we will dive deeper on these names teeto lchinhr sckun that's next. ♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake.

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fund investment objectives, absorbine junior pro, the strongest numbing pain relief available. it's the only solution with two max strength anesthetics for fast penetrating relief absorbine junior pro. nothing numbs pain more. welcome back. time for today's three stock lunch. today we are taking a look at several stocks that have seen better days and asking our trader if there's any chance for a turnaround. here with our trades is scott nation the president of nations indexes. we have intel shares jumping 7% on hopes of a business split, but the stock is still down over 55% this year. it's been a long time since the stock has seen good times. what's your trade here? >> that's right. intel is a hold. as you pointed out, up 7% so far today. it was up 10% at one point today

and the -- that's largely because the management has said they are exploring strategic options. that's always good for a stock when management says that. and here intel needs the help. they missed the ai revolution and now they aim to become a contract or custom manufacturer for other chip companies. that means they're giving up the ip side of the business which is disappointing. the result is -- remember when intel was really the thing. earnings disappointed earlier this month and they suspended their dividend which makes sense and explains what's going on with the company because if they want to become a custom manufacturer, then they're going to have to build capacity and that is incredibly, egregiously expensive in the chip space. stock still isn't cheap even though it's gone from 50 to 21. 5 right now. 50 at the start of the year. we have to see what management comes up with as far as strategic options. but it's a hold right now. >> for sure.

up next we've got lululemon. shares lower after the company missed sales estimates duts its full year e guidance and the stock down nearly 50%. without showing off unattractive leggings, can lulu turn things around? >> they can. this is a long-term buy. the space has had a tough time. it's been out much favor. but the product is everywhere. these products are everywhere, so i expect a bounce. you're right, from lulu has been cut in half year-to-date. but again, that's an over reaction. partly because both revenue and earnings per share are expected to grow by 9% both this year and next, so with a forward p/e of just 18, it's cheaper than the broad market and nike has a p/e of 24 and 26, lulu is quite a bit cheaper than nike. but the company can't have any more failures like its breeze

through leggins which you referred to. they can't afford to any misses like that. they need to start coming through and produce. >> breeze through. >> it makes your butt look like a whale's tail is what people thought. >> i have not heard of that. >> you should be telling me thises. >> it's not about the tight leggins, it's about the baggy sweat pants and pleated trouser. there you go. finally, we have walgreens. the stock down double-digits after pfizer announced a direct to consumer telehealth. the former dow component down 65% this year and now just a $9 stock. is there any hope for this stock, scott? >> no, there's not. this is a sell. this is just a sell. the entire space is in trouble. the entire space is a sale. the customer experience is horrible. shrinkage for customer products is horrible. the stock as you pointed out got

killed on wednesday and now pfizer and lilly are both going to create their own customer direct sale portals which means the prescription business for walgreens is not going to be the revenue producer it was before. it produced 55% of walgreens revenue in the last quarter. that means both sides of the business are challenging. the prescription business is going to have a tough time. we know the retail side is really having a tough time. dollar tree pointed out that their customers are really feeling the pinch. that's not going to help the retail side of walgreens. it's just a mess. the whole space is a mess. management has not done a good job. it's a sell and if you decide to hold on, i'm going to say good luck. >> scott nations, thank you. after the break, why one trader sees more upside for gold. market navigator is next.

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of a percent, sorry, yeah, the nasdaq up a little better than that, but everything fractional in a range. in today's market navigator one trader sees gold behaving like it's 2007 and that could lead to a 10% to 20% upside from here. joining us now is brian stutland portfolio manager at equity armor investments. good to see you. you're going to be looking to trade how with gold here and why? >> well, i want to use options to trade gold. i think we're like you mentioned before, kind of in this area of 2007 timeframe if you look at some of the technicals going back to that time area. what i'm looking to trade it, i want to use options. basically gold is up about 20% year-to-date. when i look at how it behaves out of the breakout trime frame

when you go back to 2007 when you have the heightened volatility and explosion in vix in august 2007 and the fed starts cutting rates, i think there's still more room. i want to play through the election. i'm looking at gld etf using options out to november expiration and buying the 235, 255 call spread. buy the $235 call, sell the $255 call, pay roughly about 470 based on where the stock is trading right now and i have that $20 range upside potential, and i'm only risking $4.70 to do this. >> is that $4.70 why you're using options and not futures? why not just use the futures here? >> correct. i have a little bit of a balance between the two and i think because gold is already made that 20% move out of potential 30 or 40% upside move i'm looking at the breakout occurred, i would sort of limit

my risk and use options. maybe take some risk off the table and my exposure to gold. ill still want to have that exposure. we're in the money press printing era for the last decade or so, so i want to see the upside there and use a call spread to define my risk of $4.70. >> thanks for showing the playbook. thank you. after the break, the final day of this week's powerhouse road trip ending in oxnard, california. a town you might not have heard of but the average price for a home there is nearly a million bucks. "power lunch" will be right back.

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welcome back to "power lunch." it is time for our final stop number our powerhouse road trip series taking a look at markets across the country on our final stop this week we are hitting oxnard, california, one of the most expensive markets according to zillow, oxnard number 71 in market size out of 100 markets

with the median home price of $875,000 fifth behind only san jose, san francisco, los angeles, and san diego. homes are spending an average of 16 days on the market before being sold. they're also selling for more than 47% above listing. for more on the oxnard market let's bring in gary, a realtor with remax beach office. tell us about oxnard. why do people like living there? what can you get? >> you can get a lot in oxnard. depends on what market you're looking for. oxnard is unique because it's two markets. you have a primary housing market and you have a good secondary housing market. a lot of the higher price points are in the secondary housing market which would be considering our beach communities and marina. vacation rentals out there because the county does allow for airbnbs and that brings up the prices that you see in

oxnard. for the most part the primary market is going to be around that median home price of 800 to about 1.1 million and the secondary market around 1.2 million to $8 million. >> you're in one of these homes. tell us about it. what do you get for nearly a million dollars? >> today i'm around the golf course area and around the golf course area you can get a three bedroom, two bath about a million dollars, 2,000 square feet. if you wanted to transition into the secondary market, which is considered the beach area, you can get about 800 to 1,000 square feet single level home and you could be -- keep that as a primary or eventually airbnb. there's a couple properties like the one on the screen in silver strand beach that sold for 1.1 million, keep it as a weekend home or airbnb that. that's really what makes oxnard a unique market. we're in southern california and they allow for the airbnbs in

the beach areas. >> so gary, who is buying demographically and are they buying with cash? i'm wondering that particularly in the secondary? >> >> secondary market a lot of cash. i'm seeing a lot of people selling their primaries in los angeles and they're buying secondary cash in the harbor area. the harbor area considered more primary i would say, areas like hollywood beach and silver strand more of a secondary beach market. you see 1031 exchanges. people selling condos in l.a. and moving to oxnard. a lot of people, you know, they want to play a four-hour round of golf not six hours. they don't want the beaches super busy. it's a way more laid back lifestyle than what they're used to seeing. the downside, there's not a lot of high-paying jobs. you can't really work in oxnard and afford the $8 million houses. >> i was going to ask, what do these people do to live in these homes, pay with cash and get to

play golf all day or go to the beach. it's about an hour, right, from l.a., so do you see people that commute? do folks work from home? >> it's a little bit of both, but oxnard and that beach area, it's a little bit of an older demographic i would say. most people are retired there. and they found oxnard on a vacation, a weekend getaway or spent in an airbnb and realized i'm only an hour away from los angeles but 45 minutes from santa barbara and i can work here for the next two years or computer for the next two years and eventually retire here. that's what we see. we're a lively community in the summer months. and it slows down a lot in the winter months. like all locals we look forward to after labor day when our weather gets really good and the tourism kind of slows down. >> right. lots of airbnbs in the area. bet you get a lot of tourism. thanks so much for bringing that to us. well, with the end of this

week's powerhouse road trips. the kind of homes you can get across the country. in miami, the country's eighth largest market, three beds, two baths, 1600 square feet. in syracuse you get more than three times as tch square footage. $1 million in st. louis buy four beds, four and a half baths. yeah four and a half baths and a lot of square feet. as we saw in oxnard, california, one of the priciest markets in the country, a million dollar home, 864 square feet. bungalow. >> which one are you taking? >> oxnard probably. >> yeah. >> i came here from california. >> all the way. >> i don't know about the taxes though. >> yeah. >> that makes miami look better. >> there you have it. over to kate rooney for a news update. >> hey there. ukrainian president volodymyr zelenskyy today fired the commander of the country's air force. the dismissal comes one day after an official said a u.s. made f-16 fighter jet crashed

killing the pilot. in a video message zelenskyy says he decided to fire the commander to strengthen ukraine's military leadership. japan's defense ministry requested a record $59 billion in military funding next year saying it needs to further confront the increasing threat from china. japan says it plans to spend nearly $300 billion through 2027 which would put it third in spending behind only the u.s. and china. and just in time for a holiday weekend filled with sports, espn and parent company disney are locked in a battle with directv over a flu deal. espn's current deal with the satellite provider expires on sunday and while negotiations are ongoing both sides say there is still a big divide on the details. if a deal isn't reached directv's 11 million customers could miss out on the u.s. open, college football and nfl's first monday night game, guys.

disaster. >> i know a few people who would be upset about that. us among them. >> thank you. still to come, exploring ai impact across every major industry today. we're looking at airlines. we'll be right back. tober 11th.

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welcome back to "power lunch." the tsa is expecting to screen a record 17 million airline passengers this labor day weekend with today being the busiest day. one key perhaps to managing the strain artificial intelligence. for her latest installment of ai impact our julia boorstin is looking at ai in the sky. >> the airline industry is betting that ai can help it reach new heights. major u.s. airlines including american, united and alaska airlines are investing in new ai tools to help speed up and streamline everything from ground controlling to customer service, to route optimization.

american airlines took us inside its dallas-fort worth control center to show us its ai powered smart gating tool in action. the technology developed in-house uses ai and machine learning to automatically assign gates to incoming flights cutting down on runway taxi time. >> the sooner the plane gets to the gate our passengers have more time to connect, our bags have more time to connect, our flight crews have more time to connect. >> reporter: american said the tool has cut taxiing time by about 20% or two minutes per flight, which adds up to about 17 hours daily across the five airports where it has been rolled out. >> 60% of the customer traffic is making connections. this is a really big deal. so trying to do that manually used to take us hours. now with smart gating we reduce all that to less than a few minutes. >> reporter: alaska airlines is using what it calls waze for the skies. the tool deploys ai to improve efficiency in flight paths and helps design the fastest routes

which saves fuel and minimizes delays and has video cameras to use ai to analyze when catering fuel and baggage trucks arrive and depart which alerts agents about timing and delays. ultimately cutting down on aircraft turnaround at gates. >> the use of ai and improved technology will enable them rather than massive layoffs, we're assuming we'll see fewer hires through attrition and be able to do more flying with fewer people. >> united uses generative ai not to prevent delays but tocommunicate them. since consumers are less upset about delays when they understand the source. the airlines' customer service department uses generative ai to craft what they say are detailed and empathetic messages during flight disruptions and united has used this tool on 6,000 flights since march and says since then its surveys have found a 4% increase in customer satisfaction.

airlines tell us the tools aren't replacing jobs just yet, but the imme takenation of the ai tools come after industry wide layoffs. what the airlines do say is that these tools can drive efficiency in a way that workers haven't been able to on their own just yet. >> maybe this is hitting a sore time because i had to drive 13 hours to and from michigan because i had flights canceled this month. are we sure we want ai taking the blame for some of the issues that airlines have had? they don't seem -- doesn't seem to be fixing the stuff and wowing us to the degree one might hope. >> of course we all remember that big issue where holiday was n -- delta was not able to get people where they need to be. what we're looking at here is how ai can drive incremental gains, how ai can get you to the gate faster, maybe just shave

off five or ten minutes from a flight that might otherwise be half an our or hour delayed. when you're talking about ai taking over entirely that sounds like a risky thing. what this is about are the tools to help people do things in their jobs that they wouldn't be able to do as efficiently or eyes on more things or coordinate things with sort of an algorithmic efficiency that humans couldn't do on their own. >> i'm going to be looking for signs of that today when i go to the airport on a friday long holiday weekend. >> good luck deirdre. >> i need all the ai and human help possible. >> if you get a text from united telling you why your flight is delayed will you be less annoyed. >> i will be just as annoyed. good to know. thank you very much. summer is ending and temperatures are cooling across the country, but pippa, it's always hot in those ai data centers. i love this story. jensen huang, he mentioned it on

the nvidia earnings calls looking for ways to keep chips cool. >> we're talking about the liquid cooling market specifically. it is pretty small, but it's growing really fast and companies are racing to get ahead. vertive and electric snyder and traditional hvac companies. it's a natural extension of their business model in trane, johnson controls and carrier have pointed to the opportunity. on nvidia's earnings call ceo jensen huang said the number of data centers that want to go to liquid cooling is, quote, quite significant because traditional air conditioning systems don't cut it for gen ai chips like those from nvidia given how much heat they're gin rating. liquid cooling can lower operating costs. dean dray telling me we have crossed the rubicon in the sense there's no going back to traditional cooling. 5% of data centers have liquid

cooling, with the firm anticipating a 40% compound annual growth rate ahead. i know you spoke to the ceo this summer who said liquid cooling is going to take off this year. >> a lot of cases this is actually literally dunking the equipment in liquid to cool it down. the difference between that and blowing some cool air on it is extreme. >> yeah. that's one kind. that's immersion. and -- there's three kinds, immersion, direct to chip and rear door heat exchanger and they all kind of have their pros and cons. with immersion that can be the most energy efficient but issues with the energy because it has the pfos and it's heavy. if you have a multilevel data center you can't put it on one of the higher levels because it's so heavy. it's like all three have a place looking forward. it's a question of the environment and data center specs for which one you choose. >> what kind of investment does that take. i was talking to an energy provider who said his capex is up 40% over the last five years

and what does it require? >> so it's -- so the hyper scalers is the one that's actually buying this technology and doing liquid cooling, but the liquid cooling companies tend to work with account chip muchers. it is a higher up front capex cost but does reduce your costs over the longer term because it does lower your energy consumption and if you don't keep your chips cool enough some have monitoring devices and if they get too hot the warranty is voided. with your equipment you don't want it to be malfunctioning. >> and direct to chip cooling seems to be pulling ahead these days. thank you. sticking with the ai theme news on openai, and its efforts to attract investment. kate rooney is in san francisco. >> this is the latest in openai's funding round. the "financial times" reporting openai is in talks to change its corporate structure to become what they're describing as more investor friendly. it comes as the company is in the middle of this multibillion dollar fund raise.

a source telling me openai's valuation could top $100 billion at this point and according to the ft the start-up has spoken to investors about restructuring although a final form has not been agreed to and they say it would be attractive to financial backers if they're able to simplify what is now a complex nonprofit structure. the current structure is unique which might be an understatement. equity is issued by openai's for profit subsidiary governed by the nonprofit board and openai spokesperson telling me, quote, we remain focused on building ai that benefits everyone and as we've previously shared we're working with our board to ensure that the best positioned to succeed in our mission the nonprofit is core to our mission and will continue to exist. guys, back to you. >> kate, it really feels like this week has been a really big one for openai, right. you were reporting on some of the mega caps that are looking to get in on this round. this company needs to grow up essenti

essentially and maybe this is part of it. do they want their cake and eat it too? how are they going to keep it there but have a profit arm? how does that work? >> it will be interesting to see the final form here. i would say anthropic could be a model here. they're a public benefit corporation which is what patagonia and ben and jerry's does. that could be one avenue they might pursue here. again, i think the nonprofit part of this has really been core to the openai story, why elon musk has gone after openai he was a founder, of course, bulls it's really been on one part their mission and they've really talked about making this good for humanity and trying to accomplish agi and being a leader here, but it's also gotten in the way based on what ft is reporting of some financial backers and makes it much more complicated issuing equity from a nonprofit. that's unprecedented. it would make sense they would need to simplify this for investors. >> getting in the way is one way of looking at it. i'm not surprised after what happened with sam altman back at

the end of last year, that this is where we've gotten to. one of key questions i have how much equity might sam altman end up with coming out of whatever transaction is next. kate? >> i have a feeling sam altman is doing just fine on the equity side. that is one question in terms of is it going to be like a facebook where he's got, you know, these controlling shares. that will be one question for a lot of these big tech investors that are getting in. how much say does sam altman have? will he have the controlling voting shares so common in silicon valley. that was one thing to look at as the company matures and gets older. what is sam altman's influence in terms of his ownership of the company and voting rights. as the company continues to mature we'll see. >> successfully fought off his detractors previously. interesting when he's talking to the mega caps if he's able to get as much leverage as he had against people in the start-up community and vc investors. >> all right. >> thank you very much for that. >> thanks. >> right now a lot of that

influence is theoretical not in equity. >> going to be structured. >> key movers in the biotech space. we will bring you the news and the stock moves when we return. this is clem. clem's not a morning person. or a night person. or a...people person. but he is an "i can solve this in 4 different ways" person. and that person... is impossible to replace. you need clem. clem needs benefits. work with principal so we can help you help clem with a retirement and benefits plan that's right for him. let our expertise round out yours.

i. welcome back to "power lunch." we have big movers in bit-- biotech. what are they? >> we are watching bridge bio today. anilum is down after releasing a trial of its drug and the drug cutting the risk of cardiovascular events in death by 33%. it's not sure how it compares to bridgebio's drug. earlier this summer looked like it would be the clear winner here. now it's looking like it will be a more competitive market that will actually take shape. both are trying to take away share from pfizer which makes the only approved drug for this type of heart disease attr cardio my yop that this. the new data paints a messy picture. mizuho says the drug is better

than bridges. other names taking a hit today look at intellia. they're confident in their res results plan to seek approval and we'll have to watch to see how that will take shape. >> fascinating how these stocks move not necessarily on results, but on, right, the projection of results, feelings about what the results are probably going to be. how definitive do these tend to be. >> we need to be clear earlier they released top line results from this trial, but today we got the clear picture. >> financial results. >> right, right, right. the data do inform how big the market will be. that's why there was so much optimism that it would be the clear winner here but now if it's a little less clear, maybe it's more competitive, maybe it's about which insurance company or which drug insurance companies will cover and so now, it's, you know, more of a question mark and that's why you're seeing so much uncertainty. like tech moon shots. >> there you go. >> remember you can always hear

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. two minutes left in the show. we'll give you more stories you need to know. let's get to it. ulta missing on earnings expectations for the first time in four years. shares have been suffering since the ceo warned of cooling beauty demand. is it an ulta problem or industrywide problem? the kids are still making videos. >> beauty demand never cools but people choose other ways to feel beautiful. a federal judge in texas ruling against media matters and request to dismiss a lawsuit filed by elon musk's x. x filed a lawsuit in november after media matters published a report showing hateful content on the platform appeared next to companies like apple, ibm and disney. was it contrived?

>> good question. >> steph curry reportedly agreeing to a $66.6 million extension. he was under contract with the warriors through the 25-26 season and set to makes approximately $55.7 million this season. $59.6 million in the final year of his deal. curry will be joining "squawk on the street" tuesday in the 10:00 a.m. hour. you don't want to miss that. was basketball big when you lived in the bay area? >> yes. actually no, it wasn't. it got big after that. >> it's huge now. >> it's huge now. steph curry had a really good commercial for steph curry at the olympics. i wonder if that at all factored into this payday. couldn't have hurt. >> no. i don't think so. and you know it's amazing like the kids on the school-yard, it's basketball more than soccer or anything else. klay thompson effect. >> the dow is about at even. it's been climbing throughout the hour as has the s&p now close to a half a point in the

green, which not bad. nasdaq still doing a little better up 0.6. >> lots on the last trading day of august. "closing bell" starts right now. and welcome to "closing bell," everybody. i am brian sullivan live from post nine at the new york stock exchange and the hour begins with what could be a fourth straight month of gains for the dow, the s&p, and your money. let's take a look at the scorecard with 60 minutes left of trading not only in the day and week but the month of august and we are seeing not a lot of move. s&p up 0.4%. nasdaq out performing. it is up 0.5%. dow down 0.02. it is a friday in the summer heading into a long holiday weekend. the market steady. there are some very big single storage movers. intel's stock