dominic chu in for tyler matheson big tech buys and our market pro this hour adding to some of his positions and warns investors, and why growth isn't trumping down just yet and why she's finding opportunities. plus the powerhouse road trip heads to boise, idaho where buyers are balking at high prices and walking away from certain deals and we'll bring you the on the ground view from the housing market when that comes out, kelly boise, idaho, we're going to go there. >> the best month of the year and it's been ayer pretty terrible year after all. the nasdaq up 1.2% -- i'm sorry, 1.5% and the s&p in the middle with a 1.2% gain and 4120 is the level for the s&p 500. amazon shares soaring 11% almost 12 now putting it on track for the biggest monthly gain in 15

years and apple adding 3.5% right now. roku losing a quarter of its value after missing estimates last night and warning of a slowdown in advertising and a lot has more to do with them than the macro, but the macro hasn't helped shares, and shares are down 17% >> they're putting growth oriented names and they're outperforming value names this past month our next guest says investors need to be picky, even as she adds to the big tech positions let's bring in anne barry founder of thread needle inventions you have a lot of expertise in investing in technology. why are you still a little wary about dipping your toes in to certain parts of that technology market >> the essence of that question is because i just don't have confidence in the management teams in the growth arena to be able to execute through an uncertain period that no one's really seen before so i do have confidence with the

alphabets of the world and the amazons of the world who have proven that they can juggle, balancing capsule allocation to invest in growth and making sure they've got the discipline to keep costs under control and they've proven that you've done it and it takes the growth space and we have the expertise quite yet. >> if that's the case, it does suggest then that the companies with the most experience, the most seasoned ones out there and you mentioned the amazons and the alphabet parent company of google and does that mean that the microsofts, the apples and maybe even meta platforms are the ones that you want to go into despite the fact that we've seen certain of those stocks tank over the course of the last year >> yes i think it's one that i'm staying away from and that's despite the fact that you've got a ceo that's been in place for a long time and you have sheryl samberg and she's the coo there. meta has started over the last 12 months to dip its toe into new business lines that are

completely uncertain as to how they'll develop through this next phase of economic uncertainty we've got in the u.s. and there are others when it comes to microsoft. we still don't know what will happen with the big gaming plays and it's a strong balance sheet when i look at the values here, i'm being looking at amazon and alphabet in the next q3, q4 period >> when it comes to the idea of what to avoid, there are still certain places maybe outside of mega-cap technology and i bring it up for such a long time that whenever there is a market downturn you go back to the same thing that you know and love which is those mega-cap technology names, but elsewhere, is there anything outside that area that catches your attention besides the fact that we see apple and microsoft catch a bit in some point with the return to safety trade. >> what i'm doing at the moment is doubling down on those and at

the same time, it's looking into more interesting opportunities that flourish over the longer term and one of them is warner music and spotify's results if you look at what they disclosed to the market and it's want a u.s. stock and extremely strong numbers of subscribers they expect subscribers to double between now and 2031. i look at warner music that has self-inflicted issues and that's one that's positioned to do pretty well going through a recession and two, longer term. >> alphabet, amazon and warner music. it's an interesting mix of stocks that you're buying. i wonder if we can go into the macro side of things and is this a market as you see the price action and is this a market that you feel there is a down side

leg that you're not see. >> we still don't have enough information to understand how much of the uncertainy and consumer sentiment is going to persist through the summer period we still don't know what we're seeing in terms of relative strength for the labor market for the q3 and q4. until we get a handle in that, i don't think we know how far ad spending is going to continue to drop we've already seen the impact of cuts there hitting had the metas, and hitting the snaps and hitting had the rokus. until we understand we're hitting the bottom on consumer loan delinquencies and we don't know if that's going to drop off. we don't know where the consumer-driven decline in activity will hit the hardest. >> what we know and what we don't know >> we appreciate it. >> thanks. and the murky economic backdrop isn't helping investors. the pce price index and the

fed's preferred inflation gauge jumped to its biggest three-month read in more than 40 years and makes it one of the most complicated environments for the fed to navigate and understanding fed speak, ron insana is a senior analyst and commentator and senior adviser to north america where do we begin? >> this whole thing has been a rorschach test and you see everything you want to see in the fed statement and chair powell's commentary. i think it was fairly straightforward. they acknowledge a spending and production they admitted they're closer to the end than the beginning of the cycle and so i don't know what confusion there really is around this other than to say that the financial markets have responded appropriately and there's more room to take risk and bond yields have fallen and stocks have rallied and

commodities have moved up a bit and i think to a certain extent it's not as nearly as unclear with respect to forward clients as people suggested wednesday and thursday >> if i had to boil it down to a nutshell, the ron insana camp thinks that inflation will normalize very quickly sort ever on its own or as a result of what we've seen because with what diane swonk was warning about last hour, i don't know if you caught it, but she thinks the fed will not be able to cut rates next year and the report we got this morning demonstrates that >> persistently high i'm still sticking with the analog of a post-warren envirot and it may take one, two, two and a half years for disruption in demand exceed that supply over time. i do think the fed is getting slows tore stopping some time

next year. i don't think that a pivot is in the cards just yet i mean, and i think that was another misinterpretation and all of a sudden the fed jumped into the notion that the fed would start cutting rates and absent a large recession or an event that causes systemic risk and there's no reason for them to lower rates and there's no further reason for them to raise. we do need supply chains to normalize for inflation to come down inflation is not going from 9% to 2%. if we can get it to three and change next year, we'll be on a path with post world war i and post world war ii which i think are the more appropriate analog than the 70s and the 80s >> you mentioned there is this misinterpretation that there's this fed put and we spoke about it numerous times over the past

years whether or not the fed would step in with more accommodation. does the economy now, the data, the backward-looking data now suggest that would be the catalyst for a potential easing of financial conditions? >> it's funny you bring that up and there's something else i would point out with the fedding data dependent anybody who has access to data is data dependent. whether or not it's systemic gdp and when you talk about a financial push it had to do less with a technical recession or something that would be akin to growth recession or a slowdown than it had to do with systemic financial risk that can cause a very, very big shock in the economy. it looks like the fed's willing to tolerate slower growth, and it looks like the fed's willing to tolerate a mild recession,

what they might not be willing to tolerate is something prolonged which is something they haven't tolerated in the past the put's always there and as much as it has been used sparingly in recent decades and we've had financial crises that threaten the system which is why they've been out of the markets this way a gdp put, i don't think so unless you saw a minus 8, minus 10 print like we did during the pandemic >> ron, you mentioned this earlier, but people would want to know, when you say it's safer to buy stocks and bonds, but do you recognize think -- discretionary is up nicely this month. what is the message that's all sending? >> so, kelly, i don't think you can declare an all-clear here because the fed is still raising rates and typically you don't get a secular bull market until the fed stops and/or reverses. while it's safer insofar as

we're in the end of a tightening cycle and we've been dramatically beaten down and we see this play out all month long, our opportunity sets, trying to suggest that we're going to launch a new bull market in the last three innings of the fed's tightening cycle is historically inaccurate. the fed has to stop and at some juncture if you want a roaring bull market the fed has to start cutting rates and historically as we've seen, using the rorschach test and the ink blot analogy. people want to see a roaring just yet and it's safer than the last months. >> i always see butterflies. >> i see ink >> is it a rabbit, a duck or is it a woman or a vase >> ron insana, thank you have a great weekend. >> coming up on the show, our powerhouse road trip heads to boise, idaho, where the pandemic

market is starting to cool off and in some cases showings have all, but disappeared >> solar edge seeing over the course of this week and that's how dramatic it's been and sunrun and sunnova is is not and which stocks conservative energy issa we head to break, the companies hitting 52-week highs, including genuine parks and ww granger and enphase energy speaking of alrnivteate energy we'll be back after this

welcome back to "power lunch," everybody. the move higher in mortgage rates hasn't only sold out lately, it's actually reversed course, perhaps settling into a new normal diana olick has the latest numbers. diana? >> yeah, kelly mortgage rates don't follow the fed although they are impacted by the fed's outlook and monetary policy. mortgage rates do loosely track the yield on the ten-year treasury and that tanked yesterday due to that second quarterly drop in gdp potentially signaling a recession. as a result, the average on the 30-year fixed fell 32 basis points to 5.22%, that according to mortgage news daly and that's the lowest rate since late april of this year and well off that recent high of 6% in mid-june and it was in mid-june that the red-hot housing market made the

sharp u-turn and several of the big public builder ceos confirmed that and the june jump in rates had been inching lower for the past few weeks and that may be having a small impact on buyers already real estate brokerage redfin put out a report saying it saw an uptick in home searches and home tours in the last four weeks or so that reversed a ten-week trend that began mid-april the interest, however, has not carried through to contact or sales, so we'll see, kelly. >> we will >> by the way, now we have to contend where a market than where homeowners realize. >> they may be lower and in for a surprise and they are still considerably lower than where they were in january there are buyers that just will not qualify for the mortgage they wanted, but for those who

do it could be a welcome relief. >> diane a thank you very much diana olick. we are in the next leg of the powerhouse road trip hitting six cities this summer for a look at just how the housing market is changing today we're taking a trip to the gem state, idaho boise in particular. the median home price there is $508,000 sale count is up 39% year over year, a smaller climb compared to some other cities in this list for powerhouses and the number of homes sold above listing is also down, 11% year over year. let's check back and welcome back dan templeton from the templeton real estate group. this is a market that like others, dawn, is starting to cool off with how dramatic and not dramatic is that cooling off right now. >> well, thank you so much for having me back i really appreciate it our boise market is cooling off

a tad, but that is with sales being down i think there was a point in time when buyers were just taking a pause when interest rates were a little higher they have come back down and we are seeing an uptick in activity so i think it was inevitable that we had a correction in the market because the price increases were just not sustainable ask so that's how the boise market is doing. >> so for millions of americans, the process of buying a home, i guess we'll call it is probable one of the most personal things and biggest financial commitments they'll make in their life for that reason sentiment is search a big part of it. do i feel good about it? do i not feel good about it? with buyers and sellers in this market given the fact that we've seen interest rates behaving the ray that they are and price action with the way it's behaving right now, as well.

>> well, buyer sentiment is that now they're seeing more opportunity because we do have more inventory and some prices are being -- decreases in prices are happening. so buyers are actually starting to see an opportunity and now that interest rates are down a bit, we are seeing an uptick in activity seller sentiment is completely different and they're wondering where the multiple offers are that occurred last year and prices are still 12% higher year over year. so our market is shifting and it's not the doom and gloom that some people are painting it to be >> are there places that you are seeing, dawn, this idea that maybe things are getting discounted a bit it's a foreign concept to people in the market over the last couple of years during the pandemic are prices coming in to get

deals done >> yes absolutely, sellers are now having to make repairs and they're now having to make concessions for buyers so that is definitely happening, and i think that's why we're in a more balanced market and we have to be with buyers and sellers and that's a great thing. think that's a good thing. >> i was in boise to report on the crash in '08 and '09 i guess you guys were emblematic there were a lot of excerpt-type places where you had lots that were sitting vacant ask gas stations that were built and not fully completed. i have to imagine things are much different this time around, are they >> much different. i experienced it, i loved it and worked it. things are much different. it is an adjustment to get things back more to reality and

pricing, and so that was definite doom and gloom, and there was a ton of inventory on that -- we actually looked back. there were 5,000 homes on the market during 2007. >> wow >> now i think we're getting up to almost 2,000. so it's a completely different situation altogether >> going back to normal is the journal this time put it as opposed to what was the ghost town for quite some time dawn, thanks for your time and for -- >> go ahead. final thought? >> oh, no, i was just going to say yes, we're getting back to a more balanced market where it's good for both buyers and sellers. >> dawn temple torn of templeton real estate group join us to explain how it is evolving on the ground in boise. >> by the way, big basque population >> it seems like the right type of terrain >> yeah. sheep. great pumpkin muffins. very pacific climate

up next, small, but mighty and rising interest rates providing a boost for the bank especially the regionals and we'll explain why next plus a solar surge washington removes a key hurdle, names that canis re even furt when "power lunch" returns into the heart of iconic cities is a journey for the curious traveler, one that many have yet to discover. exploring with viking brings you closer to the world, to the history, the culture, the flavors, a serene river voyage on an elegant viking longship. learn more at viking.com

space. the boundary of human achievement. the new frontier. ♪♪ eh. ♪♪ it's not time to escape. it's time to engage. it's time to plant more trees. hoo! ♪♪ time to build more trust.

time to make more space for all of us. so while the others look to the metaverse and mars, let's stay here and restore ours. yeah, it's time to blaze our trail. 'cause the new frontier? it ain't rocket science. ♪♪ it's right here. ♪♪

>> welcome back to "power lunch," everybody. rising rates are typically good for the financials although it's been a hard year and some benefit more than others and leslie picker is here to explain. leslie >> kelly, as wells fargo analyst put it yesterday, quote, higher rates are like oxygen that aid net interest income. the profitability metric that stem from charging more interest from loan making is a third for the success half of theier thanks to those fed rate hikes, but not all banks will benefit equally. you can see the white line is for an etf of regional banks and the orange one is for larger banks and you can see the breakout going back to march of this year and accelerating over the last month or so and

regional banks are positive over the last 12 months while bigger ones are down 13% and the s&p somewhere in the middle down 7% during that time period. regional banks have led the way given more nii tallwinds unless wall street banking headwinds and the diversified firms have a recent slum in m and a regional banks are seen as more of a pure play on the traditional business of loan making and deposit taking a simplicity that investors like amid the uncertainty out there, kelly. >> i wonder if they're concerned about the new trajectory which is possible fed cuts next year >> yeah. so that was a big aspect to this trade as well, this idea that, you know, for those who are really benefiting from nii in 2022, they don't really want to go back to that easing whier tie that that we've seen from the

rising interest rate environment. a lot of them are looking out for the next six monthers on so where there is a clearer based picture with the fact that the fed will continue increasing rates and purely based on that speculation, 2023 a lot more uncertain. i think in talking to analysts and investors, if it's much more certain that the fed would continue raising you might see better performance for some of these firms and additionally, there's the uncertainty surrounding the recession where regardless of where interest rates are it would be a problem for these businesses. >> leslie picker >> bertha coombs has our cnbc news update at this hour >> hi, dom here's what we've got. antony blinken speaking with russia's foreign minister by phone pushing to free two americans held by moscow including the star player by the nba. >> earlier today i spoke with

russian foreign minister lavrov. we had a frank and direct conversation i pressed the kremlin to accept the substantial proposal that we put forth on the release of paul whelan and brittney griner. >> families of 9/11 victims are voicing their outrage over a sawed udi arabian-funded golf tournament they accuse the players of what they call blood money from the government that allegedly supported the terrorist attacks. a court, if she is convicted in her upcoming tax fraud trial. shakira, who rejected a plea deal and denied she did anything wrong is charged with failing to pay $15 million in spanish taxes between 2012 and 2014. guys, it has to do with her prior relationship with a

spanish football player. it's very, very complicated. >> can you imagine if she went to jail? >> i don't have the mind for pop culture like that. there are too many moving parts. >> seriously thank you, bertha. >> ahead on "power lunch," bad intel. wall street expected a miss for the stock and not one that was this bad we are going to break down those results coming up. >> then on the more positive side, other semiconductor names that could benefit now that we have strong results from apple, and we'll adtre them in today's three-stock lunch. we're back in two. bubbles bubbles bubbles bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles.

welcome back to "power lunch. 90 minutes left in the trading day and maybe the week, and maybe the month as we get you caught up on the markets, stocks, bonds, commodities and the surge we're seeing year to date let's start with bob pisani with stocks around session highs, bob? >> ending on a great note for the month here i just want to point out the energy and metal stocks are moving again exxon just had incredible numbers. profits are up essentially 100% for the full year. i'm not sure you want to see metals and commodity stocks moving up when you want inflation to go down

these are proxies for inflation. freeport's having another good run and nucor and these are all commodity names here so keep an eye on that i love when the boring stocks go up i love caterpillar because they're global companies and they're on a tear. ingersoll-rand on a bit of a tear ingersoll-rand has been fantastic recently caterpillar is up 10% in a couple of weeks. some of these global industrials are really back. as far as the big movers on the s&p, when amazon and tesla have a big move up the whole consumer discretionary sector gets dragged up and that's definitely happening. apple is helping had the tech sector here and nice run here. look at that, that is a five-ier l year low and you have to go back to 2017 to see intel at these levels and that's one of the big disappointments for the earnings season particularly in

technology as far as the down side goes there's not much interest in buying the defensive sectors and there hasn't been for a few days and pharmaceuticals which had a great run. >> merck not doing so great, recently lilly is holding off all right and off the highs, clorox, kimberly-clark and they're not doing much, and they're understandable when you consider the mindset right now. take a look at the s&p 500 and 8% move and in fact, we have to go back here, we're breaking into a new trading range you have to go back to mid-june. remember that, kelly, when we were 41.60 or something before we fell apart toward the end of june we're breaking into a new trading range, fairly broad. thank technology, consumer discretionary and industrials for leading us higher this month. >> and that date is significant bracketed by the fed meeting and that was the first time they hiked by 75 basis points and

they did it again. have a great weekend bob pisani let's check on the bond market rick, i don't know the ten-year 265 with the pce number we got this morning maybe you can make sense of it here >> yeah. it's been down even lower and it's currently trading under 263. let's put that in some perspective. a month and a half ago, 614 we had a yield right on the threshold of 3.5% and we're down 87 basis points in a month and a half, and yes, i understand, things are hot and it's somewhat confusing, hot in terms of deflators. hot in terms of everything except for confidence. confidence was not hot, but what's going on here these marks are giving us a good clue as to slowing and it's part of the domestic or global issue as you'll see, look at a chart of ten-year note yields in about

two, three and a half months since early april and if you look at boon yields, they close down 95 basis points from their high yield which is 1.77 on the 21st that means their yields cut in more than half in about six weeks and that's unbelievable and if you look at guilt in the uk they closed down nearly 80 basis points with the 2.65 and they close at 186. see, the issue here is global slowing is having a huge influence on our markets and the dollar is having a huge influence helping slow many of the markets outside of the u.s there's a real problem going on in europe, and i think all these issues are definitely affecting interest rates why are our rates up with inflation going there? because the market doesn't think it's going to stay there will the market be right it is better than the people

guiding policy >> rick, thank you very much rick santelli. let's check out another key inflationary indicator and energy having a strong week and the earnings and records, pippa stephens. >> let's start with wti which is about 2.25% here at 98.64 and this comes ahead of opec's highly anticipating meeting next week and higher oil is boosting the bottom line for energy companies. chevron and exxon this morning reporting record profits during the second quarter and their refining divisions playing a key role as prices for products like diesel and jet fuel jump both stocks are rising today, but we have seen some softness across the energy sector in recent weeks amid growing recession talks and the potential demand slowdown, but exxon ceo darren woods saying on

squawk box that he still sees growth ahead >> there is some elasticity in demand so we did see some impact in moderation demand, but continue to believe and see growth overall and as economies continue to recover. >> meantime, huge moves across the clean energy space this week following that surprise deal between senators shumer and manchin as well as strong earnings the invesco solar fund up about 19% this week with hydrogen and wind stocks rising, as well. in terms of individual movers and enphase sunrun and sunnova, kelly up more than 30% this week >> increddin pippa, thank you for highlighting that and we'll pick up on it because our next guest says one of the leaders could be first solar and it's moving bigger and colin rush senior analyst at oppenheimer it's weird to see you and not be talking tesla.

welcome. >> thanks so much for having me. i'm happy to be talking solar, and i'm more constructive. >> why are you more construct they've half of solar companies have gone bankrupt and -- >> it's much higher than that. >> why is now different? >> it's a tremendous market and we've seen about 100x growth and we think three to 5x growth including solar market from an insulation perspective and solar is the cheapest form of new energy for the power markets we're seeing, you know, a couple of important trends. one, energy security is a huge issue that this bill addresses in a meaningful way. secondly, we're seeing the elect ri nation not only of the transportation market and also the heating market so the demand on the power grid will be substantially higher and as we move towards wanting clean power around climate issues the

solar demand will be substantial. >> go ahead. >> let me clarify, the inflexion point you're talking about is that solar, correct me if i'm getting this wrong, is now the cheapest form of new energy. are we talking utility scale, i.e., the industrial sector? because for households, obviously, that wouldn't be the case >> you're not all of the way there. on the industrial -- on the utility side absolutely, without question as you move on the edge of the grid it depends on which market you're in, but we think with solar and storage for over 30% of the country now is economic in the u.s. and as we look across europe it's a much higher percentage of that and first solar is focused on the utility scale market and with natural gas at $8, and when we look at baseline power comps solar has a 20% to 30% cost advantage. >> i wonder if it doesn't reveal to us to what they're still

relying on government subsidies, because even though they're fading and the stocks would dump and this really speak to a fundamentally strong earnings model? >> so for first solar one of the things we are upgrading on is the production tax credit if this bill passes which we think is likely and that adds another between $4 and $10 of earnings power for solar depending on how it checks out in the ultimate levels and when we think about this from an energy security perspective and the fact that the the only legitimate manufacturer of solar panels in the u.s. and that's an important component of this bill that is in there and it's critical for the u.s. to secure its own sources of energy and the traditional energy side and we need to see that sort of investment happen for the clean energy sector and we're seeing this bill as a meaningful moment for that >> colin, it's dom

on that point, do you feel as though the u.s. can be in a leadership position to really exert some type of influence and be the tip of the spear with regard to this solar trade it's us versus china on so many fronts, but it has to be us versus china on the solar side, as well. >> that ship has sailed and we're behind as a country. all of the manufacturers except for first solar have gone out of business to the point of bankruptcy earlier this is about a hedge in my view as we look at transforming the grid and you have mooing toward clean energy sources we need manufacturing sources and this gives the country leverage even though it is more, pensive than other sources of panels. >> colin rusch thank you very much. have a nice weekend. >> thank you >> up next on the show, a sinking chip intel reporting its biggest revenue drop in more than a decade, but can it do more and

right the chip we'll be back right after this hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here, there has to be someone here making sure everything is safe. secure. consistent. so log in from here. or here. assured that someone is here ready to fix anything. anytime. anywhere. even here. that's because nobody... and i mean nobody... makes hybrid work, work better. finding the perfect project manager isn't easy. but, at upwork, we found him. he's in adelaide between his color-coordinated sticky note collection and the cutest boxed lunch we have ever seen. and you can find him right now on upwork.com when the world is your workforce, finding the perfect project manager, designer, developer, or whomever you may need...

tends to fall right into place. find top-rated talent who can start today on upwork.com ♪ ♪ how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme.

(vo) is three hundred and ninety-one thousand four hundred don't touch my piano. and thirty-four square feet... enough space for your ambition? loopnet. the most popular place to find a space.

welcome back to "power lunch. intel is the worst-performing stock in the entire s&p 500 today after the company reported disappointing quarterly results and cut its full-year guidance feeling the pain fromcontinued supply chain constraints and a slowdown in pc demand. our kristina partsinevelos is at the nasdaq with what's next for that stock and maybe the sector overall. christina? >> the bottom is in. that's what intel ceo wants the market to think, but given today's stock plunge investors definitely remain skeptic. the numbers were pretty bad. eps was the worst miss in a decade and the revenue plunged on a 25% drop in client computing as well as a major drop in data centers clients fell short it brings in 50% of its revenue of from selling chips to desktop as well as laptop makers and the slowdown hits them particularly hard as well you have customer inventory levels that are high which means they don't have to buy as much.

the covid lock downs that lasted longer and one you don't hear too often. a ceo taking the blame >> we missed yesterday we own that and a lot of that was the economic and a lot of that was us and our execution. we are being held accountable to our shareholders yes, i need to do better we need to do better and we will do better. >> the issues persist. the company is pushing back the launch of the new cpu in 2023 and problems with the pc supply chain can take quarters to unfold paving the way for a competitor amd which was supply constraint in previous quarters and didn't ship pcs to the extent of an intel amd could quadruple the share of the market in the next five years. 18 months on the show and down there, and intel is university

materialize. >> we've gotten fundamental headlines out of washington, d.c., that could be a way to right the ship so to speak this is the chips act that we're talking about, billions of dollars of future legislation coming to these computer chip companies. is that going to be enough to get things figured out right for these fundamentally speaking >> foreign ministerially speaking when you think it will be spread out over these companies, the impact will not be major and it will not happen overnight. the stocks reacted when the news came out, but you have to think long term, this will be a positive impact, but a small one. micron the latest today saying yes, they do plan to create leading edge manufacturing here in the united states, but let's see when that actually happens >> china, though the chinese minister did put out a statement today. they're not happy. the chip stock will distort the global semi supply chain and disrupt international trade. >> can't please anyone >> maybe it's time we're doing

something right. kristina partsinevelos >> we'll trade the alepp in today's three-stock lunch. we're not done with that stay with us it listens, learns, adapts and anticipates your every need. with intelligence... that feels anything but artificial. the eqs from mercedes-benz. it's the car electric has been waiting for.

welcome back who is thirsty time for today's three stock

lunch. and for the iphone, names like boradcom, which is down nearly 20% this year. we have serious logic, down around 7% and sky works solutions, which shaved a third of its value let's bring in david wagner from capital advisers maybe we start with the boradcom story. it is a big name in chips. is it worth owning >> i'm thirsty here for it it is actually probably one of my favorite names that i'm covering we've been adding to it over the last few months but last night's earnings from apple continued that rf side of the business but mostly we're buyers here due to valuation it is trading below the long-term historical average and it has room for expansion. and well first why could the multiples expand and it is simple just look at this vm ware deal it falls with the wash, rinse and repeat playbook. they are great at cost cutting initiatives.

what ron swanson does to slashing government spending is what boradcom does sg&a for boradcom is about 1%. when you look at vm ware, it is closer to 6%, so there is plenty of room. but the most important part, why i love it the most is from this acquisition, it increases their percentage of software exposure from 30% to 50%. yes the stock trades as if it is a more semiconductor company that is why i'm a buy on this name. >> you're a buyer of broad com but not of sirius. >> why. >> it is not secret they depend and apple. 80% of the revenue comes from apple alone. so last night's earnings are from apple are probably more important than series earnings next week. so they have a great report last week apple, they did not build up the inventory in the first part of the year

so if you were supplying to apple, like serious, then you should be fined. if you're supplied to android through qualcomm, you're going to need some luck here so the low, mid area of that iphone pc market, that is been horrible the high end, apple, that is not benefiting sears i'm not worried over the near term i'm worried on the long term aspect the main content uplift is probably unlikely to materialize for this name before 2024 meaning this stock could see a lot of volatility in the near term in something -- until something happens so i would take profits here. >> final name, let's talk about sky works solutions. this is closely linked to apple over the years. >> oh, 100%. like cirrus, it is about apple they get about 60% of the revenue from apple so much like cirrus, i don't think the next few months are a

problem for these names especially as the second and third quarter, apple does procuring of the components for the iphone so this is not the time i would be selling this name the time i would sell this name is in the period of november when we really start to get our next batch of new information from suppliers we know that it is easy procure and build iphones. the difficult and more uncertain part, that is the actual selling of the iphones and that starts to come in the fourth quarter. but to bring it back home, let's look at what the cfo of apple said last night and it surprised us they said their inventory are below their lower end so that is a bullish signal for sky works i'm a hold here. i don't like it long-term but i'm definitely holding in here because of valuations. they traded nine times earnings while cirrus is close to 13 times and i like sky works more in the interim. >> so the buy here is broadcom

i was thirsty. >> dom was having it back here up next, how the billion dollars lotto jackpot compares to the size of some wall street names you might owbo. kn aut >> popular ones. you'll know these names. >> "power lunch" is up next. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina?

hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones bubbles bubbles so many bubbles!

as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see... or taste or do absolutely nothing with all those bubbles. without ever wondering if you're getting the most out of your trip. because you are. welcome back to the show one of the things that kelly and

i, we have -- we like each other a lot. as you could tell. we're good friends but we differ very much when it comes to ow views on the lottery. i'll be the guy that goes home and stops at the convenience store and buys a couple and you're shaking your head. >> no. where do you think the billion dollars came from everybody. we have just had a pandemic and let's incinerate a billion dollars more. >> let's talk about where this $1.3 billion ranks the third biggest, the powerball back in 2016 was nearly $1.6 billion and then 1.54 for the mega-millions back in 2018 but 1.6 is still the mark that we're looking at and by the way, just to give you an idea of 1.2-ish billion dollars could buy you in market cap, how about lazy boy. that is the $1.2 billion range and brinker international, from

chili's and then sky west airlines, if you feel like owning an airline. >> that is my point. we could do something more productive with this money i wonder what happened to this winner in 2016 or winners. >> i have two dollars in a dream. >> how many tikckets have you bought. >> i plead the fifth. >> thanks for watching "power lunch", everybody. >> "closing bell" starts now. >> and stocks are at session highs on the final trading day of july as the s&p paces for the best month since 2020. up 9% in july. apple and amazon, adding a combined $230 billion in market cap today. basically a pepsi co the most important hour of trading starts now welcome to "closing bell," i'm sara eisen markets up 1.4%. healthy week, up 4.25% for the s&p and the nasdaq als