melissa for "power lunch" and those fed mninutes it starts right now. thank you, kelly we begin this hour with minutes of the latest fed meeting when the fed cut rates a quarter point. ylan mui is in washington, d.c. with all the details take it away >> melissa, the minutes give us a pretty detailed look at the internal deliberations within the fed over that decision to cut rates last month it outlines three broad reasons that fed officials decided to move forward, first the slowdown in growth, particularly in business investment, and manufacturing likely related to the ongoing trade war. second, it says risk management, that uncertainty remains elevated and other central banks have a lot less ammunition to support global growth, the third reason that is given is inflation, which of course is still running below the fed's 2% goal the minutes also show that a

couple of participants wanted to cut rates by 50 basis points, and the reason that they pointed to was that inflation has been so low for so long on the other hand, those who argued against any rate cut at all pointed to the solid economy, concerns about financial stability, and that some of the trade uncertainty had diminished over the summer now, we do know which side won that argument, but the minutes show that the voting members on the committee felt that any rate cut should be viewed as, quote, part of an ongoing reassessment of the rate path, and that they want to maintain optionalty going forward. now, there was also a lot of discussion about financial conditions the fed acknowledged that markets had baked in an easier monetary policy. they talked about the inverted yield curve, the capital ratios, several participants brought up corporate debt and leveraged lending as potential sources of risk overall, the minutes do show that most fed officials supported the rate cut in july. they saw it as a mid-cycle adjustment

there was not a real clear signal that another rate cut is happening anytime soon. >> thank you very much and joining us now to react to what we just heard from the fed, bob pisani and rick santelli bob, we will start with you on stocks which have a very nice rally going. >> yeah, we are just off the highs. we're down a little bit since the announcement was made, we were at 2924, we're at 2923, just a small drop here i think the key phrase here is maintaining optionalty we all know this meeting occurred before the hikes in the tariffs that the president announced that was august 1st. the meeting occurred a day two before that. everybody is aware of that the general implication is they're still open to going in either direction what's changed since then? besides the new tariffs that were announced we had a very good july jobs report, very good retail sales maybe a little bit higher inflation. it's still a very mixed picture overall. the uncertainty is still there for the global markets and yet

the u.s. economy remains strong. i don't think you have much ammunition for the people who are arguing for 50 basis points cut based on what we're seeing right now. the market's reaction fairly muted down slightly. bank stocks down just a little bit right now. i'd say overall very muted reaction guys, back t bob, thank you. now to rick santelli in chicago for a look at how bonds are reacting you know, it's basically no reaction to speak of it's some intraday charts, two-year at 154, basically at the top of the range, tens around 156 they've lost ground, excuse me, which leads me to the next chart. tens minus twos, i don't think the inversions mean what they used to. i urge people to look at kelly's interview with dick boy va, it was like out of the ballpark it was flattened, now it's kind of two, three. i even saw a trade briefly under two, and finally, the dollar index, you talk about a steady

eddie intraday chart there's a lot more going on than just treasuries. fed funds are selling off a bit, so are short-term rates like your dollars, why, taking out a little of the easing and the market's taking all of this quite calmly melissa lee, back to you. >> we gear up for jackson hole starting tomorrow. tom por chel lee is chief u.s. economist with rb capital markets. tom, i'll start with you the fed officials seem like they didn't want to make it seem like there were more rate cuts coming how do you interpret all of this >> so i think, you know, it's funny, i'm so happy i brought this quote i think powell was really clear at the presser this is the quote, he literally said let me be clear, it's not the beginning of a long series of rate cuts, i didn't say it's just one or anything like that i think this is a fed that is still axed to go, you know, if you think about what has

transpired since the last fomc meeting, things in germany and keeping in mind he has literally mentioned germany specifically, right, and the e.u things in germany have deteriorated even more so since that meeting their pmi remains weak their industrial production number looked atrocious. so if global developments are sort of front and center for them, then yeah, i think this is something that's going to keep them going. >> things have changed maybe here in the u.s. in terms of perception at least, the u.s. consumer is looking very strong. that's the bulk of the u.s. economy. germany and the e.u. for that matter, they're considering some fiscal stimulus here so i mean, does that argue in the case of maybe this was mid-cycle policy adjustment? maybe there are no other cuts ahead? >> so i think if we hadn't had the announcement from president trump about the tariffs, then that could be an open discussion but literally right after the fomc, we got that tariff and the world changed because there was already fragile sentiment at that point, and you could think

whatever, you know, animal spirits might have been building back were just crushed when that happened and so yes, the consumer is strong, domestic economy is in good shape, but the fed cannot ignore these trade issues and international developments and their possible feedback loops back into the u.s. economy. >> yeah, i don't think this has -- just to amplify i think it's the right question. i don't think that the fed has anything at all to do with fundamental u.s. economic backdrop i've said this time and again on this show and anyone who would listen to me i would say this to them, the u.s. consumer is in incredible shape by any measure i mean, you're looking at a consumer that literally printed 4% in the first quarter, they're looking like they're going to print 3% in the second quarter there's momentum on their side this has nothing to do with u.s. fundamentals. >> you've got an economy from the consumer side that is performing well. there are no impediments to their spending, and certainly high interest rates are not one of them. >> no, of course not. >> so but businesses seem to be

hesitant to spend? >> yeah. >> will lower interest rates be the catalyst that causes them to spend, or is it something --ky not believe, frankly, that it is the price ofhat is prohibiting -- preventing them from spending. it has nothing to do with that. >> this is not a monetary policy problem. this is a tariff policy problem, right? i mean, it doesn't -- >> bang. >> get any more clear than that. >> as mike breed says. >> the fed can keep lowering rates. i don't think they're going to get the end result or more specifically, donald trump is not going to get the end result that he wants by the fed cutting rates. it's funny, whether the president wants to acknowledge this or not, i think he is shooting the economy in the foot capex should be much better. the fundamental piece, without going into the details, the fundamental pieces are in place for capex to perform really well. >> how much of the tax cut that he instituted do you think he's unwound with the tariffs >> i think all of it there's no -- and probably then some so i'll give you a great example

of what i mean by that if you look at sort of 18 or 2018, 2018 we were telling people it's going to be a great year from a capex perspective. maybe close to 10% all on the back of this feel good vibe that was in place from a tax cut perspective, et cetera, keeping in mind saying that at the beginning of the year. fast forward until february, march, april, may, june, you have all of a sudden this big rhetoric pickup in trade, and instead of a 10% yield frear fra capex perspective you have a 5% year from capex perspective. you're leaving growth on the table. >> where did that 5% increment go did it go into stock buybacks? >> you know, i don't think it -- >> it didn't go into capex it went somewhere. >> yeah, it went somewhat into -- >> cash? >> cash. >> you know. >> or balance sheets. >> it hasn't filtered through into the economy so much, and we've certainly erased that with the tariff issues, so now where

do we go from here as tom says, mini mean, if we go ahead with the tariffs as scheduled, september, december, computationally it will wipe out the benefits of the tax cut. >> how divided do you think this fed is >> extremely divided we just heard from the minutes that there were two members looking for a 50 basis point cut. we know two -- >> we know who they were i guess they don't say that. >> they don't say that necessarily. >> and you know, we might suspect -- >> i don't have the minutes in front of me but -- >> that it could be vice chair clarida. it's possible it's clarida, and na would be really something if the fed chair -- there's really no recent precedent at all that a fed chair would essentially get overruled by the rest of the f fomc it's a really difficult press conference for powell that he has to giver his view. if he can't carry the rest of the committee, imagine that happening to bernanke, yellen and certainly greenspan. they would carry the committee now this is fascinating time

where powell maybe can't do that. >> then you got to ask the question, is it time for him to go if he no longer carries that committee, then maybe president trump has something to powell, you know, you should find another job at this point? i don't know, what do you think? >> yeah, i mean, look i think that cause is a hard thing to sort of define, right? that's really the only way you can get rid of a chair look, i think he will certainly finish out his term. i don't think that this -- i think it's a lot of rhetoric i don't think he's going anywhere, but again, the point is well taken in that, you know, it's funny i think about that press conference, that last press conference i mean, he -- and by the way, the press did a great job of just like holding his feet to the fire he was so uncomfortable. we wrote those words he just seemed really uncomfortable. i think he sort of has lost the narrative a little bit. >> we were in the middle of it, and the person to my left immediately said when he said this mid cycle adjustment. you jumped on it and you said

that's why the market is going down. >> and then he backed away, and he sort of unwound it. >> it was the truth. it absolutely was the truth. you were on it as it happened, i'm telling you. >> well done. >> yeah. >> thank you, both, evan brown. >> i get to sit next to her every day. it's pretty cool. president trump speaking earlier at the white house talking about china, taxes, the fed, even tim cook the only person he didn't talk about was eamon javers who's live at the white house. >> technically he did talk about me as well right at the end, but i'll leave that aside. the president really doing a 180 here on the issue of taxes in terms of his tone. yesterday saying he was interested in all these ideas on tax cutting, indexing he was talking about. he was talking about a payroll tax cut as something they were looking into, maybe not right now. today, though, the president saying no, not looking at tax cuts no, i don't like indexing at all because that's for the elite

i want to do something for the workers. take the tax cut idea that were floating around earlier in the week take that off the table. the president giving a little bit of a window into his psyche or his thinking on how he approaches the china trade war saying that previous presidents didn't engage in this trade war. he rejected the idea that it's a trump trade war, but then he sort of said that he's the only person really on earth who can do anything about it take a look at this moment. >> somebody had to do it i am the chosen one. somebody had to do it, so i'm taking on china. i'm taking on china on trade, and you know what? we're winning. >> reporter: the president there saying he's the chosen one and looking to the heavens as he said that. what he means is that he's the only president who's been able politically to take on this problem, a dramatic piece of rhetoric from the president. also we heard from him on tim cook i asked the president whether he has a better relationship with

tim cook than he does with some of these other silicon valley executives he said he does, and here's why. >> the only one that calls me is tim cook he calls me whenever there's a problem, he'll call. now, the problem was that samsung, a competitor, a good competitor wouldn't be paying tariffs and tim cook would i got to help him out short-term with that problem because it's a great american company samsung is in south korea, not fair >> reporte >> reporter: the president saying i've got to help him out short-term with that problem that is tariffs. the president's own tariffs. so the president's telegraphing here that he's looking for some way to help apple out vis-a-vis samsung and its competition in terms of the president's tariffs. how is that going to work out? i don't know does he have something in mind more than just kicking the can down the roads 90 days to december that he's talked about. not entirely clear from that conversation the president did say that that personal relationship with tim cook, the fact that cook picks up the phone and calls him directly the fact that cook comes and has

dinner with him up in bedminster, new jersey, last week, those are things that matter to this president, and it might matter to apple's bottom line if they can get some kind of carveout or exceptiemption. >> eamon what did he say to you? >> he said all these other ceos don't have nearly as much influence as you do. i think he was saying i'm the low man on the totem pole. >> you are our chosen one, eamon. >> reporter: i'm here to serve. >> thank you eamon javers at the white house. coming up, the debate the markets are having every single day. is the economy strong or is a recession imminent two different newspapers with the exact opposite views and the fed summit in jackson hole kicks off tomorrow, and we have full coverage on cnbc tomorrow and friday "power lunch" will be right back

: the u.s. consumer seems to have missed the recession memo shares of target and lowes both much higher, target on pace for its best day ever. look at that, up nearly 20% or $16 a share, record highs there. let's dig deeper into these retail names with retail analyst

greg mall ek and our own courtney reagan. let's start with target's blowout quarter and their guidance, which was good. >> yeah, so target was similar to walmart in that both beat across the board for earnings revenue and comp sales the comp sales pretty strong, up 3.4% for target. so that was stronger than walmart's but still both of them have this momentum that seems to continue, and they're getting strength both from the stores and from online. the strategy that they've sort of been talking about for years and years how they're going to use the stores and online together target really did it, and they proved it in the numbers they offered these three options for same-day pickup. if you order online and you want to pick up your goods or get them the same day. it's pickup, it's drive up and shipt. those three were responsible for 40% of the comp sales growth so people are really using those services they're ordering online and picking up at the store and having a target employee load it

inside, or they're going inside or paying that $99 a year for the shipt delivery service talk about thoes working together and improving the numbers. >> greg, pick apart target for us >> that's a nice summary in the sense that the consumer is giving credit to retailers that give them a true multichannel experience, and i think this really started last year with walmart. you saw it yesterday with home depot's results. 9% of their sales are digital. target are up to 7% are digital, and the real winners in retail are the ones that are giving that multichannel experience that's what target's doing that's why they're driving traffic. they had a nice traffic number up over 2%, and last year it was up even more in the second quarter, and what they did that might be a little different than some of the other companies, walmart last week, is they did it while gross margins expanded. i think that's the reason target is up say 16% today as opposed to just 5 or 6 it wasn't just the sales and the traffic, it was they actually saw margin expansion while getting those sales. >> we heard from other retailers

so far that fulfillment costs were on the rise, and yet target also saw higher fulfillment costs but was able to offset that with mix and price and promotion. >> yeah, and you probably know these numbers off the top of your head, but john mulligan at target often talks about because they're using the stores as the fulfillment notes they're able to significantly lower the cost of fulfillment i think it was 40% in some cases and 90% in other cases depending on the program that's being used because the consumer is doing that final trip themselves >> they've become the ups delivery guy you just put it in a bag and. >> yeah, so that is really helping, and i think in the beginning when brian cornell talked about the strategy in february of 2017 and he talked about leaning into stores and building more stores, the street was really skeptical i mean, the stock took a pretty big hit. they weren't so sure that really pushing into stores was going to be the answer, and today it

seems to be at least. >> greg, we had on yesterday an analyst who talked about lowes and was very high on lowes, in part because she thought that the same-store sales were going to grow faster than home depot's. they did, and she also gives credit to the turn around that she sees taking place in that company traceable back to new management. >> we like lowes we have an out perform on it we also like home depot. for us the big call in home improvement is rates went up last year, existing home sales fell, and there's a long 40-year tradition of home improvement demand getting weak six to nine months after that happens, so the second quarter was actually a pretty tough quarter the census bureau said u.s. home improvement sales were actually negative in the quarter, both home depot and lowes showed they were able to gain share by growing pro business faster than diy. we like both of them the key to remember is that both those companies put up a better

quarter in a pretty tough macro environment. >> how vulnerable are those two to tariffs >> one of the things that we like about both of them, when we do our work we estimate a 10% headwind for retail earnings next year if list 4 goes into effect at 25%. sort of like the worst-case scenario the impact for them is like 2% it is companies like best buy, like target because they have more apparel and toys and electronics where the theoretical risk is greater than the 10%. >> all right, folks, thank you very much. good to see you. >> thanks for having us. >> appreciate it. apple shares up more than 5% in the past week the whole sector is rallying is tech ready to resume leadership plus, the recession rumble s.comy the real state of the u. eno we're about to get two opposite sides of that debate stay tuned

. welcome back to "power lunch," i'm mike santoli at the new york stock exchange, time for "trading nation. tech stocks back en vogue this week the xlk technology etf up over 1% today, up 4% in the last week, so is the wind again at the back of big tech joining us to break it all down

are mark newton of newton advisers and mark tennpper has this recent market pullback knocked tech off course. >> it's right to be in technology in the short run. i think you have to be a little bit more selective of what you buy in the rally you look at charts of xlk and the declines in may and also late july really failed to breach the longer term trends in xlk and the equal weight tech. really it's still a case of buying dips. you rolook at a longer term cha on xlk that changes things a little bit. you are starting to see momentum waning this year compared to last that really is more of a warning sign more than really a sell you know, my thinking is for most trend followers it is proper to wait until xlk gets under 75, until you really decide to get rid of it, and near-term you could make upward progress from 82 to 84 or so

from a tactical perspective it makes sense to be long really watch for a break of 75 that would change things. >> all right, so still a little bit of slack in that leash, i guess, by that analysis. mark tepper, where would tech make sense as mark newton alluded to, the technology sector right now is basically apple, semis and software largely. >> right, yeah, first things first. i do believe the bull market's still intact, but when you're in the later innings, we have to be more defensive, and we love the tech sector were overweight, but hands ware we prefer software over semis just like mark does that really gives us a more defensive posture. why is that? well, software revenues are higher margin and a lot of them are recurring, so you really have some downside protection when the economy slows one of my favorite names here is sales force. they report tomorrow quarter after quarter they execute, but the stock price hasn't moved it's up over 7% this year.

the concern has been if the economy slows, enterprise spending gets cut, but a crm program is really the engine behind a business. it's the last expense a business would cut, so we're overweight tech, but we do agree stick with software over semis. >> all right, thank you very much, guys appreciate it, and for more "trading nation" head to our website or follow us on twitter @tradingnation. ahead on "power lunch," president trump says the economy is strong, but some on wall street are raising the alarm bells. we will debate the recession obsession. plus, tilray up in smoke shares down a whopping 90% from their september highs, and one top analyst explains what's wrong with this stock. and a hollywood breakup, disney's box office power house marvel leaves one beloved superhero far from home. "power lunch" will be right back nrz. and now the latest from

tradingnation.cnbc.com and a word from our sponsor. and n tradingnation.cnbc.com and a word from our sponsor.

. welcome back, everybody. i'm sue herera here's your nucnbc update. the trump administration is rolling out a plan it says will allow the government to detain families crossing the southern border indefinitely, rather than the current practice of releasing them within 20 days. >> the new rule establishes a high national standard for care of children and families in custody, allows the government to keep families together for fair and expeditious immigration proceedings, restores integrity to our immigration system, and eliminates the incentive for children to be used or exploited to enter the united states. dozens of protesters wearing protective riot gear gathering around a train station in hong kong today they aimed laser pointers at

police and chanted liberate hong kong about 50 riot police arrived to disburse them. two nasa astronauts went on a space walk outside the international space station today. it was a working trip to install a docking adapter on the station. it was expected to last about six and a half hours you're up to date, that's the news update this hour. back to you. thank you. want to check on the markets right now. they are holding steady onto gains, this after the release of the fomc minutes of the last meeting. the dow is up by a full percentage point, s&p 500 up by 8/10 of a percent. consumer dregs niscretionary, t spread is down to 1 basis points it's interesting the market is able to hold onto these gains. the oil market closing for the day. let's get to rahel solomon at the cnbc commodity desk. >> a choppytrading session for u.s., crude prices with w ti

erasing all of its earlier gains. brunt still up making this now its fourth straight day of gains. wti had been up more than 1%, prices paired gains after data from the eia showed a bigger than expected rise from fuel inventory. the demand picture looking optimistic it's really the supply that's painting a somewhat mixed picture. >> thank you very much now it's time for a recession rumble the "new york times" releasing a scathing editorial arguing that president trump is pushing the economy to the brink of collapse "the wall street journal" publishing an op-ed that says recession fears are overblown and it's the exact debate all of wall street is having. ben ja man apple balm is washington correspondent for the "new york times" and john hea heartley is co-author of the journal's op-ed. it's great to have you both here

tell us what you think is happening with the economy right now. >> i don't think that the economy is in recession right now, and i don't think it's a sure thing that we're headed into a recession, but there is a narrative that could take us there, and it basically has to do with train. these rising trade tensions create uncertainty in the economy. we've seen businesses holding back on investment expressing concerns about the prospect for global growth. if that takes hold, then president trump keeps pushing in that direction as hard as he can, that's when you have the chance of a downturn if people lose confidence they start pulling back more dramatically and that thing starts to build on itself. >> john, why don't you see that playing itself out into a downturn >> well, the macro fundamentals are strong gdp continues to chug along above 2% gp growth unemployment rates below 4 prerngs t%. real wage growth is near decade all-time highs, and on top of that you don't see any big uptick in unemployment claims.

until you see something like that, i wouldn't be particularly concerned. we've seen a capex like short recessions in the past without there being major economic down turns. we've seen that in the mid-2000s. we've seen that in the 90s as well the question whether that was a sustained phenomenon or not, and i agree that certainly trade and global growth i would say more so has weighed on business investment, but i think also you have to consider the fact that president trump and his economic team followed this closely earlier this week they've discussed potentially further lowering corporate rates and i think that if it does continue to meaningfully get worse, i couldn't think of a better policy prescription to shore up business investment, which if you remember in early 2018 there was a massive capex boom following the tax cuts and jobs act, and i think that had a lot to do with lowering the corporate rate from 35% down to

21% where it is now. >> did you want to respond to that and to the idea that if it's going to spark a broader downturn as you see it, we're likely to see the president step in with some counter measure >> i think that's actually a really key point because the president is actually very constrained in his ability to do anything you know, when the president first came into office, he had a republican congress. he was able to push through the tax cuts he wanted, maybe they had a positive effect for a while, but even if he wanted to do that again right now, he would need to con rinse congressional democrats to go along with that plan one has to put lower chances on his odds of doing that it's not at all clear that this white house has the ability to respond meaningfully to a souring in the economy >> you know, as i listen to both of you, benjamin and mr. hartley i sense that, benjamin, you are looking forward to the potential effects of tariffs on the u.s. and global economy, and john, you seem to be focused more immediately on the numbers as they stand today and as you look

back ward here am i understanding the difference in your views and let me ask each of you then to respond to the other, benjamin, what do you say to john when he points out the compelling numbers that he does, though some would quibble whether there was really a capital spending boom in 2018, and john how do you respond to benjamin who says, hey, wait a minute, the current numbers may not be all that bad, but what may happen as a result of tariffs may indeed be. so ben, you go first >> so yeah, i agree that the economy right now has a lot of things going for it. we're still seeing relatively strong growth. we're still seeing job growth. i personally don't subscribe to the view that the tax cuts made a meaningful difference, but you know, i do think that a lot of things look pretty good right now. what i would say, however, is that i think we are starting to see signs of weakness. i think that we are starting to see consumers feeling some pain from the tariffs, and it is

true, certainly, that it's only if things get worse that we end up in a recession. but where we are right now is clearly not a recession, and i agree with john that the fundamentals at the moment are not all that bad it is a question of whether the current trajectory continues to deteriorate. that's how we end up -- >> john, benjamin kind of concedes a lot of your points. what do you say to him directly about the potential that tariffs might have to slow things down, derail what is a pretty nice picture right now? >> well, i think first and foremost, i think it's important to remember that one -- you know, the president is clearly and his economic team follows closely and especially with an election happening next year, would hate to see a recession happen. >> you think >> there's actually -- there's only been two post- -- there's really been two major causes of recessions in the post-war era

and that are things like financial imbalances, things like housing market collapses or tech bubbles or fed policy mistakes, and i don't think, you know, potentially there's some frothiness in the corporate credit market but it doesn't really seem to be systemic, and then on the fed policy side of things, i think raising rates to 2.5% where we were earlier this year is not anything like what the fed did in the '80s to fight inflation. you're already seeing now the fed is already providing some sort of accommodation, cutting rates by 25 basis points last month and the market expects another 25 basis point cut in october, at least a 70% chance. >> correct me if i'm wrong, i didn't in that very clear answer hear you mention tariffs at all? >> well, and i will just add to that, i do think it's important to recognize that the president actually just delayed the latest 10% tariffs on an additional

$300 billion of goods from september 1st to december 15th, so i don't think that the president is tone deaf or his economic team is tone deaf in any way, and i think, i mean, you've seen in the past that, you know, farmers that have been impacted by tariffs have received support from the president, so you know, i don't think that right now it's fully escalated to the point where it's something that i would be too concerned about, and certainly giving the election i don't think that the president -- >> just so i'm understanding you, and i'm looking for clar y clarity, i'm not meaning to challenge your point, it sounds like you're saying that if the tariffs start to bite, don't worry so much because the president and his team will take swift steps to ensure that the bite is mitigatmitigated. am i understanding you correctly? >> that's right. there's been reports earlier this week that the president's economic team have considered cutting the payroll tax, they're

potentially considering cutting the corporate rate i think that would probably be the better way to shore up business confidence, and i think too if economic data did meaningfully get worse, i think that congressional democrats and speaker pelosi would actually want to work with the president in that regard i think it's also important to remember that you've got things on the docket, like the usmca which dmemocrats seem somewhat divided on passing that may be a sign of good faith in trying to shore up more business confidence in the u.s. and some good bipartisan policy making. >> thank you, both benjamin applebaum and jon hartley. and coming up on the tasting menu, spiderman leaves the web, a milestone for women at work and a kicker story about a kicker stay with "power lunch."

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have been the driving force for the auto industry in recent years, but could the trend be starting to stall? phil lebeau joins us now from chicago. this one surprised me, phil. >> you know, tyler, the trend of demand, of people wanting to drive an suv or a cross utility vehicle, that's not slowing down that continues what's happening is that automakers have pumped out so many of these models that sales per model, in other words, let's take like the jeep wrangler as an example, not a definitive one, but as one example. the number of sales per model is declining from here. that means for automakers it's going to be a lot tougher to boost the profitability on these vehicles also, keep in mind, we're in a slowing sales market >> it's adding additional pressure, and i think that pressure is certainly causing some inventory issues, and causing manufacturers to make some tough decisions, and that

is trimming production as well as looking at some changes in future model rollouts and options. >> gm is one of those automakers that is going to be trimming production if you take a look at the chevy equinox which they build in three shifts in mexico now they've said we're not going to build as many doesn't mean they're getting away from the equinox, they're just not requestigoing to have o them in dealerships. they've got the new ford edge coming out, which they build at their plant in kentucky, and they've decided that they're going to have less production than many people originally thought. bottom line is this, guys. there are so many more of these models for sale that incentives are rising people can go around and say if i don't buy that one, i'll buy this one, and what's the best deal that's out there. this is going to continues over the next couple of years. >> they all look the same. i drive down -- >> that's another issue. >> i'm telling you -- >> that's another issue. >> or i look in people's driveways and one's a mercedes, one's a toyota, i'm telling you,

they all look the same. >> very few stand out. there are a few brands that do stand out, range rover is one of those on the luxury end that does stand out i know people may have comments about it, but that stands out, and the other one when you look at the mass market, the jeep models jeep is still an incredibly strong brand those guys stand out you look at a lot of the other ones, it's a mishmash and people cannot tell the difference between a lot of o'them. >> commodity thank you. here's a taste of some of the other stories we're watching today. the friendly neighborhood spiderman is leaving marvel. disney and sony couldn't reach an agreement that would have given new terms between a co-financing stake between the two studios. the decision will effectively remove spiderman from the marvel universe this comes after sony had its highest grossing film ever with spiderman far from home. kelly surprisingly is an expert on this topic. >> how does this work? >> evidently because -- so marvel after it went bankrupt in

1998, ike pearlman came in, bought some of the assets and sold the rights to spider man to sony at the time for $7 million, and sony turned down the rights to the rest of them. sony's owned the rights to spider man disney comes in and owns marvel. >> it buys marvel. >> so they have this deal for some of the movies lately where disney would take the cost of it, they'd only get 5% of the profits. they wanted for the movies going forward to say we'll do half the cost, we want half the profits now. sony balked at that and disney has walked away and said, fine, you keep the spider man property we're going to take marvel and the producers behind it and focus on tv content and content for disney plus. i think, but i will be corrected by those in the marvel universe who know much better than i. meantime, another major milestone in the work force. women will make up most of the college educated work force for the first time this year they make up 46% of the whole labor force, but they outnumber men in terms of the college

educated labor pool. it's made companies rethink how they attract top talent with paid parental leave becoming more attractive in benefit packages i think that's driven by dads as much as by moms. >> yeah, but i mean, covering for instance, fertility treatments, freezing eggs, all of that is eggs, all of that is the rise of the woman in the workplace. >> absolutely. and the philadelphia eagles might have more competition in the kicking position soccer superstar carli lloyd visited the camp she picked a 5-year-old field goal >> could she play for the nfl? >> i'm sure she could. i don't see why she couldn't. >> that is totally awesome >> even if she doesn't want to play professional football, they ought to let her in a game just do it >> i mike, second career check that out shares have seen half of their value go up in smoke so

far. did peatnsetexctio g too high? we're talk about tilray and what's battling the stock, after the break.

down about 90% from all-time highs when it was above $200 a share, just last year shortly after the ipo. who is wrong with tilray joining us is the founding partner with melius research you don't like the industry overall and tilray in particular isn't this the promise of the larger canadian companies is all about? access been the interinitial market >> that's for sure cannabis has taking the league in being legal the sure is a big still uncertain. there's just pockets the spots where you can start to sell. we don't know who will end up supplying that market in two, three, five years. they're doing the right thing, but there's a lot of uncertainly

with the expansion. >> specifically medical marijuana, rob, i'm curious how you think any of these companies are positioned to actually serve cbd to the international markets, which maybe a path of least resistance in terms of legalization >> yeah. so right now they're expanding that are growing basically marijuana in europe. we'll see how regulations develop. again that's where the speculation comes in, where we haven't got broad clarity on either medical or cbd in europe yet. >> even if the pathway were clear, rob, how ready are countries like china they are extracting cbd from hemp and from marijuana for export, for the export markets dodds that as major competition for some of these canadian players? >> jamaica, too. in many places cannabis has

traditional medicine in china. whether that's a main source of competition or elsewhere, you know, there's multiple levels of uncertainty. people will want, especially for medical, people will want a security of supply that you're taking high-quality product that's been tested, et cetera i think what you just highlighted is one of many uncertainties. >> any buy ratings in this university >> we do on all errora we have a negative rating on the industry, you know, just last few months it's volume tiff, right? you're basically taking shots trying to get directionally correct. we've tried to go with someone who's got scale, leadership, ability to grow, and a bit of execution. i think it's time for companies to start executing. >> rob, great to speak with you. >> thank you so chmu and check, please, is next

this is sort of surprising as we watch the 2/20 spread compress today it's now just under a basis point here this is something to watch as we go into the closer we're now up 0.8% >> bingo, this is the markets telling you, even though bonds basically shrugged off the minute, this is telling you they

want to do more, and they'll push the fed to do more. >> not all inverted yield curves lead to recession necessarily, but it is a telltale. >> no surprise finances are at the lows of the session, so very interesting final hour thanks for watching "power lunch." >> "closing bell" starts right now. welcome to "closing bell." i'm david faber in for wilfred frost, in front of target. they had better than expected numbers. that's a new high. we're rallying on the broader market until the close. >> let's look at what is driving the action stronger, up about 2315 a the dow fed minutes just out emphasizing a recalibration. markets moving on that we just lost about 90 points in the last few minutes we're on the verge of an