good afternoon welcome to "power lunch. glad you can join me in the backyard once again. stocks are near session high with the nasdaq leading the way turning positive now for the week the dow on the other hand is still on track for its worst week in about three months tiktok on the clock. the government has 30 minutes now to postpone its ban on tiktok or announce a deal with the chinese owned app. we have the latest details on that as breaking news is sure to happen this hour a former tech executive and investor will join us to talk about the spak explosion and

what he's expecting ahead of the 22 billion their ddollar debut week "power lunch" starts right now >> thank you it's been another rough week for the market but the nasdaq is now on track to snap a three-week losing streak. dom is following the numbers for us >> assuming that leadership position again and trying to snap that multiweek winning or losing streak rather but if you take a look at the move higher we're still in a position now where the dow industrials and the s&p 500 could both be on the verge of four week losing streaks. first time that's happened since august of 2019.

the nasdaq 11,000. we're watching as the key level. the trends that were happening educational where this year for the vast majority of this year have reasserted thelss this week. watch what else happens in the marketplace with apple it may be the case to be made there. we'll see if that sticks pm back over the you

>> my son just bought apple in his virtual investment port gro -- portfolio as his starts his 9th grade investment class. >> you get to go first make your case for the unusual thought that instead of turning up ahead of a recession in the market, may not.

the thesis behind the waiting is the hardest part spelled as in wni sgrks. with those megacap stocks so hefr heavily weighted, if we get a recovery they are bound to sell off sharply. it will look like we have a bear market we'll have an underlying bull market in other stuff even as the economy recovers but that may be the rotation that takes place and that could affect policy makers decisions. if they think we're in bear market they may do things they don't need to do just as the economy is beginning to recover.

it would pull the market down even as others might be in a bull market. have i got it? >> just as we saw the reverse in pandemic the big winners of the pandemic were the megacap technology stocks that brought us goods or services they accrue the lion share of the gains. >> four days ago i was ready to declare the recovery market dead i guess reports of the death are widely exaggerated

>> the materials names, billi b. i would suggest the economy is healing. it would suggest perhaps sell some of my profits in the negative names that they continue to out perform over the next week or so. we had a barbell strategy. the cleaning names they did extremely well but they simply don't have the market cap to really push the market in one direction or another the healthy market is the broadening market. if they don't have a underpinning of healing in the

glob global economy then the names get a bid yet again. >> you know, ron, i don't know that it matters but i'm going to ask a kind of, maybe because i'm in my backyard a whacky question. are we in a bull market or not >> i don't know. that's a great question. for the broad majority of stocks i believe outside the megacaps, outside tech, the average stock is down 3% year to date. the unweighted s&p has got up to the regular s&p. there are elements of bull

market activity. it's all restauranted and in the same place >> is the bull market going to be persistent or vulnerable. >> it is a bull market can we test the lows of march 23rd the scenario is the company collapses. you don't get any help from the fiscal side of the equation and

the fed can't do enough and perhaps we go back and test the march 23rd low as long as there's liquidity in the market, this is a liquidity driven market. most likely it's going to be far more stock specific in those mega names think about the justice department. there are questions to whether or not things will continue the way they are >> i think quincy you get the line of the day. the bull market that nobody wants to talk about. i think that sums it up. ron, have a great weekend. thanks and quincy, thank you

kelly. let's get to the bond market where rick is tracking the action this afternoon. >> good afternoon. a 30-year bond gives you a lot of information there's a one week chart right now, it's down a basis point on the day it's down a handful of basis points on the week this is an important area. we traded below 140 we're back at 140. opened the chart up to mid-july. we have avoided a close under 140. we have been down there intraday several times. this is moving to be a consolidation support area to pay attention to which side we close on may be key. if you look to foreign exchange, the dollar index does a nice job this week.

it's not only lower against the dollar, it's lower against all the major currencies tyler, kelly, back to you. all right. thank you very much. coming up, tiktok in limbo as no deal has been made ahead of impending ban and we're expected to hear from the trump administration in the next 15 minutes or so and we will bring you the details as soon as we get them robinhoods locking in an $11 billion valuation this week. it's chime, chime that is the most valuable consumer fintech worth more than $14 billion. we'll talk to the ceo later this mo perneho reow, xt as business moves forward, we're all changing the way things get done. like how we redefine collaboration...

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welcome back the clock is really ticking on the deal to save tiktok in the u.s. there's another plan to shut down on sunday but we'll find out in next few minute where is this saga goes from here let's go to julia to explain >> 2:30 p.m. eastern today, that's in 15 minutes is the deadline that a federal judge set for the trump administration to delay the ban on tiktok down loads that it set for sunday night or it could file legal

papers defending the ban the government filed a motion requesting if they file something today that it is kept under seal if the administration doesn't respond to the judge's orders or if the tiktok oracle walmart deal isn't approved then the judge will hold hearing sunday morning to determine whether to grant tiktok's request and halt the ban on the app the actions come in response to tiktok's request for an injunction to stop the ban it filed the request on wednesday. a source close to the situation says the two sides are negotiating and really focusing in on the national security agreement that is essential to this deal and the expectation is that the deadline will likely be delayed again. we'll see what happens in next 15 minutes if the ted lideadline is not de, the user base would stagnant and decline harming the company. the congress department says it could ban ticket for all users,

not just new downloads on november 12th. that could be date to watch for in there is an extension >> this might sound a bit strange to ask but what happens if 2:30 comes and nothing is, no defense is filed, for instance and the administration wanted to still go ahead and ban it or block it or something to that effect are these legal proceedings binding? >> that's a very good question i'm not a lawyer the fact the president, the trump administration did file a couple moments ago requesting to have their filings be kept under seal indicating they are planning to file something today. maybe there's flexibility if they file something after 2:30 i think that the real deadline is really sunday morning sunday morning is when the judge would be having that hearing and making the decision about whether or not to allow tiktok

to keep operating despite whateverthe government says or whether or not they would allow the government to shut it down sunday morning is really the crucial moment 2:30 p.m. would be interesting >> julia, is sunday really the moment at which the app would be shut down in the united states or is that a point where people could not update the app there's another app, what is it wechat, where does that fit in how big is the shutdown deadline and what will be shut down >> you're right. there's multiple deadlines here. the deadline that the trump administration said it would shut down any new down loads of the app and any updates to the a.

you wouldn't get the down loads to make bitter, smoother, updates, fix different security buttons. the second deadline is november 12th that's the deadline in which the trump administration said it would shut down all access to tiktok including people who had already down loaded it before sunday night and that's the deadline that's really the most important one although tiktok has said that if new people can't download the app then they would be a bad move for the business as well a of moving pieces >> all right >> strangest deal i've ever heard of thanks very much kelly. >> i agree with you there. still ahead, the next big tech debut is on deck. it's set for a $22 billion drekt listing next week. we'll talk to early investor

about what to expect the ceo of chime says he's ready to take the fin tech company public in next year. eae ceo joins us right after the much more "power lunch" next [ thunder rumbles ] [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know there's a 30-minute limit, right?

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some fintech unicorns like rob robinhood and chime have done nicely we'll talk to chime ceo in a minute let's go do kate rooney for more

on chime after raising just under $500 million last week, the company is now valued at 14.5 billion. that's double what it was worth on paper in december and in just 18 months chime's valuation soared 900%. big investors in the latest round include general atlantic and dragon that puts chime's price tag above robinhoods which just this week announced another cash injection that values it at 11.7 billion. strike still tos the list at 36 billion. these are companies are weathering the pandemic well the challenger banks aren't banks. they are software platforms. they handle the front end.

>> stay right there. we want to bring in the ceo of chime. it's great to have you here. what accounts for your abilities to jump at the head of the pack when fin tech valuations have never been more popular. there's a huge portion of americans that are trying to make things work we seen as much as 10% of chime members we seen receive unploim b -- unemployment benefits. there's a lot of challenges people have in america.

we're thrilled with this new injection of financing from some of the growth investors in the world like tiger global and iconic and our close partners. >> let me ask what you plan on doing with funds you had some issues a couple of months ago i know that technology is a big reason why you're able to offer some differentiating products and services tell me about kind of the need to invest there and what else you'll do with the funds wetized and this financing was

opportunistic. we have a service that allows you to get your paycheck a few days early we have a service could called spot me that doesn't charge you a $35 overdraft fee. in june we announced the launch of our credit card products. that's had amazing results the average consumer has increased their credit score by 30 points. i think that trifecta of products has served us well. we invest in people and team to build that additional products to serve this segment and stay aggressive on the acquisition side and make sure we're returning a type ship here >> chris, one quick question and one maybe longer one first quick question is who is the custodian of your customer's

money. is it you or your bank partner who is are fdic insured? >> it's our bank partners. we don't hold the money. the money resides at one of two partner banks that we have we have partnership with the bank and stride bank we're in very close connection with them. we have multiple calls with them every week they offer the fdic insurance. we're regulated through them >> okay. my second question is who is your target customer i ask because there's millions, maybe tens of millions people who are unbanked in the united states and they are mostly the people you might expect would be unbanked they are people who are working paycheck to paycheck they may live in parts of the country where banks just aren't doing business tell me who is your target customer >> i think there's a misconception that only the unbanked are the ones living

paycheck the paycheck. it's somewhere between 50 and 75% of americans that are before that next pay period comes they are struggling the make ends meet the suite of services that we offer help people with short term liquidity it's very broadly appealing. we target mainstream, middle income consumers it's something like 90% of americans make less than $100,000 a year. anyone in that segment is a great target for us. we don't necessarily target the unbanked but if someone who doesn't have a bank account wants to sign up with chime, we would love to have them. >> chris, it's kate. good to see you. last time you and i kacaught up, we talked about the boons. you said you were getting calls weekly or every other week in terms of people asking if you were interested in a spak. is that you would consider when it comes to chime's ipo? >> we have no plans to go public

within the next 12 months. we have a number of initiatives we want to work on and bring to fruition before we feel like we're ready to take on that next chapts chapter. we believe that long term this would be large, independent publicly traded company. when we get closer to that time frame, i think we'll look at every option traditional listing, process, direct listing and potentially spak as well at this point it's not something that we're focused on. i think they do a really good job for companies that maybe have more complex, longer term stories to tell that require you to sort of think further down the line if for us, we're hitsing the ball down the middle and have a highly recurring and profitable business we'll see. any of those options are on the table once that gets closer. >> all right

chris, thank you so much for joining us today he's the ceo of chime bank now the most valuable fin tech out there. kate, thank you for the reporting. very much appreciate it. tyler, over the you. all right. ahead, ipos and direct listing companies racing to go public with more options than ever. we will speak to an early investor about the push to go public next and how they are doing it why latino home own erpship could be the driving force behind the housing market boom a bad year for banks the group being hammered by low interest rates we will take a look at the stocks being most basiced when power luh tus cc.ncrernonnb ing. yeah? so what do you see? i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts,

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♪ i know you're waiting on the other side ♪ ♪ i'm like you on-demand glucose monitoring. because they're always on. another life-changing technology from abbott. so you don't wait for life. you live it. new york city's expansion of out door dining onto sidewalks and streets are becoming year round and permanent. more than 10,000 restaurants are taking part in the program google's parent alphabet

settling a lawsuit over the mishandling of sexual harassment charges. you can go to cnbc.com to see how alphabet is changing severance payments in france, new infections are down slightly today to just under 16,000 cases that is still up more than 50% from the highs of early september. some local leaders say the new restrictions go too far and will devastate the economy. israel beginning its second nationwide lockdown. non-essential businesses have been ordered to close and people must stay within six tenths of a mile within their homes for the next two weeks back to you. markets are near the high offense the session. let's check on the dow, the s&p and the nasdaq approxima all in the green it's the under performer it's mounting a 1% gain here

the nasdaq is up 1.7% to help it struggle try maybe succeed in turning positive on the week tyler. all right. coming up, we're going a covid vaccine and a court ruling on gambling we'll explain what all that means as we head to a break. take a look inside the nasdaq. up today trying to snap a ureelongtrk. we'll be right back.

a wave of companies hitsing the public markets, some traditional ipos namely snow flake and good rx but others

using alternative method like palanter's direct listing on open door acquisition. our next guest is general partner at founders firm which invested early in facebook he's the founder of open door with a background at paypal. leez lee, welcome in i'll let you kick it off. >> tyler, thank you so much. keith, really excited to have you here because as tyler mentioned, it's been a very big year for you especially as it per tapes to public listings you have open door, door dash which is seeking the traditional method of going public air bnb process still a bit up in the air at this point i'm sure you're aware of the debate amongst your peers in silicon valley about the draw

backs of various methods, the benefits of various methods. which camp do you fall >> i don't believe there's a one size fits all solution for all companies. some companies need capital as part of the process. some companies have it on speed. some companies care about the pricing versus shareholder base. there's a different solution that may be more appropriate for each company >> you may have seen the sec chairman spoke on "squawk box" where he said the regulator will be taking a closer look at spacs. what do you make of this whole spac frenzy and are you concerned this could end badly

next year? >> i don't believe so. i think it's wise to have transparency in compensation and transparency to sponsors banking fees have been sort of a pseudo monopoly shareholders should understand complete transaction and compensation to everybody involved >> it's no secret that big tech has caught the ire of washington both in terms of content as well as competition do you believe the scrutiny is warranted? >> i believe there's different concerns that different parts of spac terms have. on the conservative side, people are concerned there's a look of value.

on the left you hear these big is bad kind of arguments and they try to use the vocabulary and trust argument which doesn't make much sense. these are fairly irrational arguments. google made you can create a tradition anti-trust case. the idea that apple, amazon pose a monopoly is just ridiculous on its face >> you had so many fascinating thoughts on how remote working won't work and covid forced a lot of discipline in silicon valley on china, you're very hawkish. you call it a serious geo political threat at a time when a lot of the tiktok debate is being met with this eye roll and look at how messy this deal is and why are

we talking about a goofy social media app. why to you think it's important that the u.s. has a strong backbone, if you think it is, when it comes to tiktok and where is this face off with china leading? >> i believe we're facing a serious confrontation with china. a cold war china has come biambitions thate inconsistent china wants to extend its influence and feels threatened by the united states and this is a inevitable tension. china has been investing in technology and now they are investing on the front end they have been stealing ip for decades. there's no doubt that somebody will have to whether it's this president or the next president,

somebody will have to eventua y eventuallysoever this problem. we have supply chain where we can't manufacture cell phones but drug, prescription drugs, ppe to protect people in the united states. this is a real world problem china in some ways may pose a bigger threat than the soviet union. they propped it up for half a century. china has real economic eng engen, real ai talent. this is a world class problem for the political world. >> i was going to ask you

something different but you're discussion of china has been so fascinating to me. i want to turn you to say how do we take on the chinese in ways that can both sustain the supply chain, which you point out is absolutely important to so much, at least over the past decades to what we have been able to do in this country are tariffs, for example, the best way to fight back curiou curious. >> i don't believe so. there's been a short term trade producing lower cost consumer goods for the american consumer for 40 years by exporting production to more cost countries. that makes short term sense.

we need to do the same here. we can't even produce antibiotics in the united states now. that's a very serious problem. china is capable of exploiting that they threaten to with hold critical medical supplies as covid was breaking out i think we're going to have change methods from long term viability. >> fascinating keith, thank you very much less leslie, thank you for joining us in the conversation have great weekend speaking of fascinating folk, don't forget our investor conference delivering alpha. it's back now for its 10th year.

you can find out more at deliveringalpha.com. we would love to have you join us for the full speaker line up and register let's mention boeing which is hitting session highs phil has more more us. >> kelly, one reason why boeing shares are moving higher because the faa administrator will be flying the 737 max he's going to go through similar lart tra -- simulator training and test out the new flight control software that will happen next week this flight has been widely anticipated. this is not a surprise announcement the fact this is happening next week combine that with head of the european version of the faa. the head said we think this plane could be certified and back in service by the end of november put those two together and you

see that we're nearing the end of the questions about when the 737 max will be ungrounded steve dixon, the head of the faa will be flying the 737, piloting it himself that will happen next week tyler. >> all right thanks very much. still ahead, as i say good-bye to my son who is going to football practice bye. low interest rates have helped fuel the housing boom this year. there's one group of americans my wife is laying rubber out there. my goodness. one group of america that's driving the gains and on the flip side, those same low rates are hurting the big bank stocks. that sector is on track for its worst year since 2008. he osdeilafr is break.

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the driving homeownership. diana spent the morning to speaking to industry heavy weights at the latitude conference she joins us with their details. diana. >> kelly, part of the conference the release of a new report from the state of hispanic wealth project with fascinating stats on latino homeownership. it's lower than the overall national rate, home ordinary reasonship has been growing steadily for the past five years. it's made up just over 50% of the net growth in overall homeownership compared with only 1.5% by non-hispanic whites.

nearly half of latino renters report saving considerable money during the pandemic with the number one goal to buy a home. 40% of latino renters say they will buy a home in next five years compared with 33% of non-hispanic white renters all

thanks very much and have great weekend. >> all right, to are more on the latino homeownership boom and what is driving it, let's bring in gary accost yashosta, the cor of hispanic real estate professionals and the co-founder of latitude. i guess it was your conference this morning, right, gary? >> that's correct. >> congratulations on that h what has been the impediment over the years to bringing more hispanic, latino professionals into the business and how are you trying to can change it? >> it's been a challenge historically mostly because it's a business that doesn't necessarily align with a lot of people -- latino skill sets they've become a force in terms of home buying and their participation as consumers in this space, it is definitely created a great business opportunity for the

practitioners. >> what do you mean it doesn't align with latino skill sets i'm curious. are. >> historically, latinos are involved in different segments of o you are economy they're a big part of our labor force when it comes to construction and different activities like that the real estate professional business as a realtor or mortgage o mortgage originator is not something that was introduced to them early on. but that is definitely changes >> 40% of latinos plan to buy a home over the next five years. this must track along with the we willth in latino communities. >> well, as we know had, this is a great way to accumulate wealth for any family in the latino community in particular, it's a tangible asset. we knew that they were very interested in participating in homeownership because it created more stable environment for their families but we're just starting to learn

how latinos recognize it as an investment opportunity our studies show that latinos are actually 25% more likely to invest in real estate than other segments of the population that's an extraordinary down time. >> and more likely to invest in real estate as diana just said than to invest in mutual funds or equities or bonds >> yeah. that's what we're seeing right now. noncash financial assets and this is in our community in this country. and we are investing in those. but real estate is something that is an thung we can recognize and build over time. you see them invest in landlords

and greater numbers than the general population that is extraordinary. >> interesting stuff gary acosta, thank you very much we appreciate your time today. >> thank you thank you for having me. >> kelly >> we've got some breaking news on the pending tiktok ban. now julia joins us what can you tell us >> well, the trump administration did file an opposition to tiktok requesting a state of the government's threatened ban they got that filing in just at 2:30 that filing is under seal. we don't know what it says now next steps, tomorrow is the deadline for tiktok to file a response to the trump administration's filing today. and then sunday morning the judge will hold a hearing to decide what to do about this ban that is set to take effect on new tiktok down loads and updates and to see whether or not the judge allows that to take effect. now of course all of this is mute if a deal is agreed upon and the deadlines would all

disappear. kelly, right now weesh're watchg the steps ahead of that proposed ban sunday night. >> all right julia, thank you very much for keeping us up to speed for the year the s&p 500 is up barely 1%. but some individual sectors made big moves. tech is leading. as can you see, energy still down about 50% the second worst sector is down 25%. we'll take a closer look at the bank's bad year next don't forget, you can always watch or listen to us live on the go othcn a we're back right after this. sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... boss: doug? sorry about that. umm...what...its...um... boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers

plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. i see a new kitchen with a grill and ask, "why not?" i really need to start adding "less to cart" and "more to savings." sitting on this couch so long made me want to make some changes... starting with this couch. yeah, i need a house with a different view. and this is the bank that will help you do it all. because at u.s. bank, our people are dedicated to turning your new inspiration into your next pursuit. ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses, i'm thinking i can become more marketable. you don't need to be a computer expert to be great at this. these are skills lots of people can learn. i feel hopeful about the future now.

♪ welcome back if you've been banking on returns 2020 is not your year. the xlf is down 25% just since january. we're digging deeper into where this weakness lies >> it's the banks.

let's be honest. it really is the banks let's check out what is happening in terms of etfs the financials broadly speaking. and then the banks you mention the financials down 25%. the bank etf is down 40% that's where much of the underperformance, that big gap is coming from now what's driving that performance right now like we said, it's not just the regional banks but the big money centers as well. take a look at the performance on a year to date there, look at those. wells fargo, citi, bank of america are underperforming. wells fargo, co-merricka and citi are three of the worst performing stocks over the course of 2020 you can see here losing roughly half their value p that's a big move lower. now what is working in financials that's different it's not the banks it's insurance companies much it's index data providers analytics companies, exchanges, broker dealers look at msci, s&p global they're up 28 and 38% higher

that's off the covid-19 lows have been powering at least some of the outperformance in financials kelly, tyler, banks underperforming. we'll see if that trade continues in the back half of this year. >> all right dom, thank you very much, sir. >> all right >> tyler, go ahead st yep >> yeah. i was just going to say, we're closing in now, it would appear on what looks like a 300 point gain for the dow we're going to take a look i reorient myself. it's almost the weekend. i'm going to pull up a chair it's going to drive everybody crazy in the control room. i'm going to come over here and sit in my rocking chair, ladies and gentlemen, there we go there we go. you can take down that lower third. the halo returned. month to date, let's take a look at where the markets are month to date after this very topsy turvy week how we've done in september and there you see down about 4% for the dow. about 5% for the s&p 500

and what is that two? kelly, can you tell me i can't even read it over there. >> it's a far reach. >> 7.5% for the nasdaq >> now you just need a pipe and, you know, a good book. >> a pipe is not what i was thinking of, kelly it was something a little liquid anyhow, pull up a chair. the next hour is coming. >> have a great weekend, everybody. >> have a great weekend. >> "closing bell" starts now. >> see you guys. have a great weekend i'm wilfred frost. stocks rallying as we head into the close. the dow and s&p 500 still on pace for the fourth straight week of declines lit's have a look at what is driving the action tech stocks driving the nasdaq now 2% of gains. mega cap names taking back the september losses the dollar strengthening once again. pacing for the best week since early april. that's putting pressure on gold prices down nearly 5% for the week. and the coronavirus and the