hi, everybody. welcome to "power lunch. alongside contessa brewer, i'm tyler mathisen coming up, president biden's busy weekend he is meeting with g7 leaders on russia, china and more negotiations on the debt ceiling reportedly stalling. plus, retail's big shrink problem, left. hitting the bottom line big-time it is not kids' shoplifting stuff. it is organized crime.

stocks turn lower after the reports about the debt ceiling talks. all three major averaging are still posting gains for the week look, we're all off, down about a third to a half a percent on the dow industrials. foot locker losing a quarter of its value. it said sales have slowed. it has to provide discounts to clear inventory, and that's dragging on other sports apparel names, including nike. look at under armour down 5%. dick's sporting goods 6% vf corp. down 19%. growing tensions here and abroad the debt ceiling talks stalling once again you had to admit you thought there would be a snag. all while global leaders meet to discuss issues surrounding china and russia and more. kayla covering both of those stories for us

kayla, let's start with where the debt ceiling talks stand and what may have happened this morning. >> tyler, negotiators working toward a deal to cut federal spending hit an impasse. they are pressing pause and accusing the white house of being unreasonable the change in heart comes after just yesterday top party leaders both said they were optimistic an agreement could be reached in the next week. kevin mccarthy suggested the administration hasn't budged on spending levels. >> yeah. i mean, yesterday i really felt we were at the location where i could see the path the white house is just -- look, we can't be spending more money next year. we have to spend less than we did the year before. that's pretty easy. >> the white house, meanwhile, sees republicans as inflexible saying the president understands the gop has an issue with its vote count and hopes they understand what needs to be done to deliver democratic votes.

janet yellen told bank ceos in washington there was no wiggle room from that deadline. she identified the earliest as the potential default. that deadline now less than two weeks away. >> kayla, there is many needles that must be thread in washington on both sides of the aisle. but let's go across the world to the g7 where the topics, the principal topics are russia and ukraine and probably to a lessor degree china. >> yes the leaders of the world's largest economy have been meeting in japan for the last day, and they will be meeting throughout the weekend of course, russia and china loom large in those discussions first where russia is concerned, there is a discussion over the war in ukraine and how to end it that's been the discussion for the last year plus president volodymyr zelenskyy is set to appear at the g7 in person and now we have learned there has been an agreement to send

f16 fighter jets from the u.s. and allies to ukraine in a way that would intensify the fighting and hopefully amp up ukraine's defensive power. and then there is china. of course, this summit is taking place in china's backyard. there is a discussion over economic coercion, boll storing domestic supply chains moving these supply chains out of places like china and to places like japan and europe where they feel that they can more sustainable make products we expect to learn more about those efforts when the summit wraps. >> thank you for that. and speaking of china and this sort of inclination or an agreement that the g7 leaders think there should be less reliance on china and its trade with this communist station. let's get reaction to the g7 there in china yunis, hello >> reporter: hey, contessa well, china today is ausing the

g7 of what it described as coercive diplomacy the ministry today described the u.s. as the inventor of coercive policy and earlier this week, the ministry had accused the u.s. and mocked the u.s. for a shifting, what it's described as domestic risks on to the rest of the world, including, it said, the debt default now in contrast, china's president has been chairing a summit here in china, which is being billed as an alternative to summits such as the g7. president xi invited central asian leaders here and also pledged to boost trade and security for the region. he also touted what he's described as a chinese-style modernization as an alternative to the west. >> and, eunice, while they are dealing with international

front, there are also reports coming out of china that people are going to social media and really expressing dissatisfaction with their own financial situation within china. >> reporter: yeah, absolutely. a lot of people here have been very concerned about the economic conditions and exactly what the future holds for them there have been several chinese, especially young chinese, who have been venting their frustration online, in fact, sharing what they describe as snapshots or screen shots of their bank statements just to prove how little savings they have one of the popular hashtags that we have seen online is #myrealsavingsat26yearsold this has been viewed 326 million times where people say they have no job prospects they have very little money and they're falling behind previous generations. >> thank you for the report from china.

all right. for more on how china tensions, the russia/ukraine conflict and stalling debt talks will impact the summit, let's bring in michael hamlin, fellow at the brookings institution. michael, welcome let's start with ukraine and the news that, as i understood it, the u.s. is willing to train people on f-16 fighters and is raising its objection, in other words, taking it off the table to allies sending those planes to ukraine is that what you are hearing and what level of escalation does that connote? >> well, to be honest, greetings to you, steve, as well, to be honest, i only heard it just now on your show but these things have to break at any moment. certainly f-16s have been in the conversation for months. i would not be surprised if he wound up making this next incremental step, which is a way

of saying we're half pregnant with the decision. we're going to start training ukrainian pilots you wouldn't start the training unless you thought there was a high probability you will send the f-16s, which means we don't have a strategic argument against it anymore i think the airplanes themselves will follow. some of our allies are already preparing to do that i have some doubts as to whether any of this weapons, you know, woepens shipment and training and general beefing of ukraine's military will help ukraine decisively win the war this year. >> let's go there, michael that's where i want to go. i read in my note that you feel that the prospect of you crane actually, quote, winning and ejecting russian control in the donbas, in crimea and all of those areas under russian control is very low and that maybe within a year's time, maybe sooner, the realists in

the room are going to have to say it is time to negotiate some terms where ukraine may not get all of its objectives. >> yeah. i'm afraid we have to start preparing that conversation. i hope that conversation is happening quietly at the g7 because it is too soon to start to make that decision, even though it is a distinct possibility. and we know that u.s. intelligence community agrees with me from the discord leagues and the elicit postings of earlier this year. but no one can really be sure. we owe it to ukraine, i think to give them a fair chance to give back what they can i wouldn't start publically pressuring them to accept that russia may keep crimea for some indefinite period. but i think our own strategic debates, at least quietly inside the administration within the alliance need to start allowing for that possibility by the way, it wouldn't necessarily mean we encourage ukraine to give crimea to russia

permanently. it will just be a recognition not settled on the battlefield any time soon. it has to be punted until future generations can settle it. there are third options which may not be appealing to president volodymyr zelenskyy but still better to pressure ukraine to give up part of its own sovereign territory. but we have to anticipate this possibility. the g7 is a good place to do that behind closed doors. >> meanwhile, china has remained staunchly sort of in the russia camp, and it's creating all these complications, michael, in terms of the tensions between the united states and china and china and the rest of the g7 russia is one factor there the trade is a factor. you heard me just mention to eunice that the g7 came up with language that says, yeah, we need to pull back on our reliance on china trade. in the meantime, china said it is not going to attend the g20 meeting next week in this disputed region of cashmere.

it says it shouldn't be in cas cashmere on top of that you have the top trade official coming to the united states next week for a very rare trade talk is there hope to ratchet down the tension with this all-important trading partner with the united states >> yes but i think that it's going to take some work it's -- as you point out, with all these different forces pulling in different sections. i mean, one reassuring thing, in the last two weeks, the secretary of state blinken essentially corrected his own boss, who earlier had rejected the chinese peace plan for the ukraine conflict out of hand categorically, just as the nato secretary had done earlier in the spring i think both were wrong. blinken was correct. obviously blinken did this after consultation inside the administration but he said there might be something in that chinese proposal we could work with.

that's the kind of attitude we've got to have, i think, in dealing with china, rather than just demonizing them or categorically sweeping their ideas aside. yes, they're buying russian oil and gas. although, we want them to because we don't want the world market to be derived of all that oil and gas so we're complicit in that ourselves. but china has not sent weapons to ukraine there is some suspicion they might be trying to get spare parts to ukraine through a third party. they have not sent faulty weaponry to russia in this war and that's a huge, huge decision they could change it at any point. and i'm not saying it proves they are well-intentioned or good hearted it could just be they are afraid of american retaliation and economic sanctions but we should not paint them as fundamentally adversarial and everything they do the last point i would make in terms of whether we're trying to

trade with them less, the phrase "derisking" is getting invoked don't depend on china for crucial things where they provide 80% or 90% of the world's supply that's a bad place to be because it gives them leverage over us no one is suggesting we should stop trading with china. i think the united states is still breaking records. >> that appears to be the case. >> the highest trade ever. >> that really is the motivation between what the g7 is saying in reducing the alliance, that they want to derisk the alliance with china. >> also fascinating to talk to you. hope you come backmeantime, as k about ai and chatbots, it seems like every hour here on cnbc, china is also in an ai race. and cnbc got a chance to check out bayou's chatbot. so you got to play around with it firsthand, ernie, huh

>> reporter: yeah, that's right. we got access to chatgpt's chinese rival, ernie and we found that, due to political sensitivity, there are a lot of topics that ernie can't really talk about. when asked if president xi will rule china for life, ernie declined to answer in chinese and english, suggesting we start a new conversation while suspending the window that had allowed us to type we made a general inquiry about president xi's policy and got warned to test out the chatbot in a civilized way we switched topics to covid-19, asking where the virus ori originated from. in chinese, it had no response, advising to change topics. ernie had no comment about why the chinese government abruptly ended its zero covid policy, but when asked could compare itself

to open ai's chatgpt ernie is more suitable for specific tasks while chatgpt is more general in its ability to again rat language don't ask what the relationship is between president xi and the character he's often compared to, winnie the pooh, or risk getting banned and ernie's challenges highlight a main conflict we're seeing right now within china's technology policy. and that is the government wants to be an ai leader but at the same time is worried about the political consequences of these c chatbots as well as the information they produce the draft regulations are now under discussion what we know is that they don't want chatbots to subvert state power. a lot of people within the industry see the wording as quite vague and are concerned about what that potentially could mean for them, as well as

the development of the industry. >> okay. but was ernie any good at, say, formulating an excuse for calling in sick the next day for work or getting out of a public speaking engagement? >> reporter: well, i didn't get a chance to ask him a whole, or her, a whole lot of questions because we were banned as we were very carefully asking questions. but there were some general questions that it wasn't to ask. for example, we asked if it could write a poem or a joke about elon musk that chinese people would find funny. it did talk about elon musk, but i have to say the joke wasn't really funny it was actually a bit incoherent but he did mention musk. >> let's assume there are no funny jokes about xi jingping. coming up, how big of a problem is retail theft?

it expects crime-filled losses to jump by a half billion dollars this year. now, other retailers like foot locker are blaming margins on shrinkage. is this a widespread problem. plus, deere in the headwinds. the stock takes a turn on concerns over higher inventory and flowing demand "power lunch" will be right back rk-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and s most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

is ready any questions?t, -yeah, i got one. how about the best network imaginable? let's invent that. that's what we do here. quick survey. who wants the internet to work, pretty much everywhere. and it needs to smooth, like super, super, super, super smooth. hey, should you be drinking that? -it's decaf. because we're busy women. we don't have time for lag or buffering. who doesn't want internet that helps a.i. do your homework even faster. come again. -sorry, what was that? introducing the next generation 10g network only from xfinity. the future starts now.

retail facing a shrinking inventory after years of staying mostly silent on the topic of shrink one retailer speaking out and it's not damaged goods from being held in inventory shoplifting and employee theft it is organized retail crime >> yeah. this is a really big problem i know we all saw these flashy videos of the smash and grabs happening during covid that's not exactly what we're talking about. this has been going on for a really long time organized retail fraud is often a group of criminals and you have someone instructs criminals to go into certain stores and steal certain things. they're stealing items that are easy to resell so maybe it's not necessarily a high-value item. only 11% of things that are sold are luxury items things that can be resold easily on marketplaces, whether it's a facebook marketplace, whether it's offer up, whether it's a

more peer to peer site, any of these things are proliferating in their use for honest people but it also makes it easier for criminal. >> turning stolen goods into cash give me some examples of items that would be stolen would it be a toaster oven at a williams sonoma. >> believe it or not, it is a lot of customer care items i don't know if you noticed, they have things locked up like toothpaste or deodorant. they're consumable products we all use a lot of and probably don't bat an eye when we're ordering them online and they're maybe a little less expensive than we have seen before and we don't really think about it but we might have accidentally bought stolen goods. >> i know because i was nosey and asked at the drugstore why are you locking everything up and she said the thieves come in and will swipe out a whole shelf into a bag and walk out. if you take 30 tubes of

toothpaste at $10 a pop, you are walking out with $300 right there. and then you can turn around and who is going to track a tube of toothpaste but the retailers, there is varying laws about what constitutes a crime that should be prosecuted, how much has to be stolen before that happens, and there is different corporate rules about whether employees are supposed to try to stop the thief from getting away from the first place. >> these are all really good points, right. so there are different felony level thresholds for $1 of value of items stolen in different areas. the higher the threshold is for something to be a felony, the thieves are smart, if they know it is a felony they still $1,500, they will go in and steal $1,400 and they will do it more than one time because a lot of the laws aren't cumulative you can steal $1,400 multiple times. the retailers are saying, employees, don't get involved.

hands off. it is dangerous for you and shoppers 81% of retailers are reporting someone or much more violence associated with retaliation than previously this is really tough there is the inform act that goes into effect at the end of june what this is doing is aiming to police some of these online sites a little more with the highest volume sellers the online marketplaces are required to basically track their contact information and disseminate it so we all have more information from who we're buying these goods from. it is a little bit like a game of whack-a-mole, right they can recreate new accounts there is a lot of technology that's being used in stores. there is different ai analytics for where people hide in the store, where people take the most things in the store there is license plate recognition. there is point of sale technology where certain technology items like a drill or toothbrush won't work until it's

been scanned across the point of sale it becomes inoperable until it's become stolen. there is a law in utah in pawnshops that if you take in an electronic good, you have to give them a receipt to prove you bought it and didn't steal it and trying to resell it. >> courtney, that's really fascinating. thank you. should investigate tors stay bullish on lithium or quit it? the largest lithium deal was just announced, opening the door for more activity around the space. and the industry is facing concerns with oversupply and price pressure, leading to downgrades the lithium etf lit up for the year we'll dive more into that space next

i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! ♪ yeah, yeah ♪

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

with gold bond... you can age on your own terms. retinol overnight means... the smoothing benefits of retinol. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. welcome back to "power lunch. markets taking a turn as republicans walk out of debt ceiling talks. for more on how that news is being received, let's go to bob pisani. >> so what is the deal worth the minutes republicans walked out, bond yields dropped they had been going up for

several days and the s&p lost 30 points the s&p has been rallying three days in a row. it moved 100 points on hopes that we'd get that debt ceiling deal done and then we could just worry about whether the fed will keep raising interest rates. now, it didn't happen. everybody is looking for an opportunity to lighten up on tech stocks that keep dominating the market and buying these beaten up cyclical groups like industrials. deere looked good on paper then deere had its conference call late in the morning the stock dropped and so did the other big industrial names there. there is not much emergency in the industrial space recently tech still new highs all the tech names started, meta, alphabet, apple, broadcom were all at new highs. they have come off those highs in the day, but they still dominate the overall market here energy stocks, maybe we get a

move-up on oil that hasn't happened don't kid yourself these things have been flat for a long, long time. that is a big high beta stock. that's 40% off its 52-week high. way back in november of last year, these energy stocks moved up, and they haven't had a lot of energy this year. so what does it mean here? if you look at the s&p, we briefly had a break-out this morning. highest level as you're going all the way back there until august for the s&p 500 with a very, very tentative we need broader participation. right now it is big tech, and it is a few defensive names, a few consumer staple names. other than that, cyclicals like energy, like materials, nobody seems to want them right now we can get this debt ceiling deal and then try to figure out what type of a recession we will all be on. >> bob, thank you. let's get to the bond market in chicago. and rick santelli is standing by for us

last week you told us the debt ceiling did not seem to be the biggest concern. is that changing >> no, it's not changing it is the big concern for market volatility, but all the traders i talked to all seem to say the same thing, spending and debt levels are unsustainable there is no way they will cut the baby in half without discussing those relevant issues look at one-month bills are reflecting nervousness as they pop up over a point and a half your three-month more well behaved. the two-year, whether it was debt ceiling, powell, they were all jumbled together it was hard to tell. if you look at the two-year, you can see yesterday they closed at the highest level since may 10th sideways today even at sideways they're up 27 points on the week june fed funds, that hype is gone one day they took it out back to you. >> all right, rick thank you very much. have a good weekend. with ev sales growing, lithium a

key battery component has become a hot commodity and that could lead to consolidation in the industry. >> well, companies are sitting on a whole lot of cash after last year's surge in commodity prices that's a boom in m and a activity producers just announced their merger in what will become the third largest lithium miner. the deal diversified the company's assets at a time when everyone was trying to draw output but it is not that easy challenges around distributing and longer lead times to get new mines online the president of house mountain partners says he believes we will see more concern because companies are looking for geographic and gee logic diversity, meaning brian and hard rock operations in different locations. security of supply is the number one worry. in addition to the live, algamar has an unsuck elseful bid for lion town just this year

it is the world's largest lithium producer along with sqm. smaller mines include lithium america. we will no doubt see more of these deals this year. >> it is a huge component in every battery that is in cars and scooters. >> yeah. >> pippa, thanks very much have a great weekend. still to come, many firms are tightening up their credit and lending standards. one company offers reviews and helps stercuoms find credit cards and more "power lunch" will be right back you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah!

it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now, and book your free hearing evaluation. from big cities, to small towns, make a sound decision. call 1-800 miracle now, and on main streets across the us, you'll find pnc bank. helping businesses both large and small, communities and the people who live and work there grow and thrive. we're proud to call these places home too. they're where we put down roots,

and where together, we work to help move everyone's financial goals forward. pnc bank.

welcome back, everybody. banks tightening their lending standards to shore up their balance sheets today we go up close with a ceo who has a front row seat on this financial crunch john >> yeah, tyler the ceo of nerd wallet, a company that became public about a year and a half ago. it matches users with credit cards, loans and insurance revenue is up 31% in the most

recent quarter but as banks prepare for possibly tougher times ahead, they are looking to offer fewer loans. and nerd wallet was conceived in tough times when chen lost his wall street job and tried to solve what he assumed was a simple problem. >> i was fired at the end of 2008 and, you know, it was a tough time to be fired it was very hard to find a few job. i dived in with both feet searching for a new job for the next 18 months, while i was also standing up nerd wallet -- i didn't really think about nerd wallet as a business at the time my sister asked me for help finding a credit card and i said, let me google that for you. i thought i would have a response in 30 seconds and was super irritated at what i was seeing out there i just didn't feel like i was trying to be helpful i just felt like it was people trying to sell stuff, right? and i made it -- so the company started off as a spreadsheet for

my sister. >> in 2023 rate hikes have affected the loans business, but inflation has also made waves in nerd wallet's newer insurance business insurers have to re-do the map on how their business works as the economy shifts >> we have been really investing in a more personalized insurance marketplace. we think we have been taking share there. that being said, the broader macro has been challenging coming out of the pandemic, things are more expensive. that really put some of the presume yums in the wrong spot for these insurers it took them time to reset some of these prices, so we started to see a tailwind from that in q1 going into q2 there is still some road bumps there that people are running into, so there is still a little bit of softness, but the general tailwind should pick up over the next few quarters. >> it is a risk story when you come down to it. a few layers down from that, financial institutions are

recalculating the value of acquiring individual customers and the likelihood that bad times will derail the consumer's ability to pay for things. >> how does the company make money? >> the financial institutions basically pay them to connect them to the customers. >> if they get a lead and they convert that lead, nerd wallet collects if i use nerd wallet, do i pay anything >> no. no you go on. they know your credit score. they know some things about your profile, if you are shopping for a lawyer, et cetera, et cetera, they have that data and use that to connect the buyer. >> in the insurance agency there has been a big attempt to try to do that. you see that with travel insurance with square mouth going in and telling you if you want a full travel policy, here is what you get, here is what you will pay, here is what the differences are. and because insurance policies can be so complex, having a platform that

helps you navigate that is very valuable but it also serves, doesn't it, as sort of consumer financial education at the same time >> that's an area he's looking to move into, and particularly i bring up ai all the time because we're talking about ai that's an opportunity that he seizes to deliver personalized financial advice based on the data they have. >> is there a conflict there, though i don't know if you have american express sponsoring part of your content and then you are trying to say, well, american express is the best choice for you, or do they not do that? is there a disclaimer? >> i think what he would say, and i'm stretching a little bit here, but i think what he could say is their advice could be based on just the data they have on what's best for you and then based on that data, they would make several options available to you, hey, you qualify for these different credit cards and here's what's popular. you make your choice but if it is more personalized,

they would say, credit karma does the same thing, if you are more engaged in getting better financial advice, you will pay attention. >> and the companies that bundle up the results, they don't pay to play? >> that's a detail -- i'm not sure exactly at which point revenue gets made, so i will stay away from that. >> thanks. quick check of the markets here as we move to check you can see now the dow jones industrial is off by about three-quarters -- a third of a percent, rather. and s&p 500 as well. and we saw deere surging 5% after crushing second quarter estimates, but reversed lower. we will lkta about what it was that spooked investors when "power lunch" returns. well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across multiple systems globally,

then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. . ..to make quick decisions? check. aaaand check. that's the hybrid cloud solution ibm and a global bank created. what will you create? ibm. let's create. at t-mobile, your business will save over $1000 bucks. what are you going to do with it? i could use a new sign. with t-mobile for business, save more than $1000 bucks versus verizon. and get the new samsung galaxy s23 plus free with no trade-in required.

(christina) with verizon business unlimited, free with no i get 5g, truly unlimited data, and unlimited hotspot data. so, no matter what, i'm running this kitchen. (vo) make the switch. it's your business.

it's your verizon. it's the end of the road dom. boom. this is your last ride. your pain has just begun. welcome back to "power lunch. we are watching the markets after the news that the debt ceiling talks have cooled. and you can see the dow is off a third of a percentage point. let's look at shares of deere also turning lower mid-day after jumping following earnings and results. what is behind this? what happened on the call to

make investors turn sour >> this has been a fascinating day for those invested in the world. a big beat on revenue and profits. it raised its guidance as well but then the minutes the earnings call started, executives referenced they may be sitting on higher than expected inventory levels. this matters because for the past eight quarters the story has been that deere hasn't been able to keep up with demand and that production levels have been very high. suddenly to say that inventory may be higher than expected, that raised some concerns about the demand story from farmers. worth pointing out, corn prices, wheat prices have come down from their all-time highs the thesis have been when crop prices stay high, farmers buy more equipment. >> it is certainly transitioning from that story, tyler, to becoming more of a tech company. that's one of the reasons why.

>> in what sense a tech company? >> they're tech enabled farm equipment that helps farmers increase their return on investment, how much crop they're producing. one of the things they're doing is all that silicon valley workers being laid off are starting to recruit some of them to help them build out their tech practice. so they're opening up offices in austin, san francisco, chicago and we also spoke to one executive who told us that many of the workers they spoke to at silicon valley, they're happy to leave. listen to this. >> our ability to be able to lure them in markets that are certainly, you know, less expensive than silicon valley such as chicago and austin has also been a really, really great value proposition. >> so contessa, google's pain has been, at least for this point at least, deere's gain.

>> tech workers that have a culture or their paths set in front of them and they get laid off or maybe they don't get laid off, maybe it is that great of an alluring job offer. >> are they in m moline, illino? >> a lot of people are willing to leave the cities and go to suburbs. >> your money goes a lot farther in moline than it does in san jose all right. coming up, the oracle is doubling down on oxy berkshire hathaway upping its take on preferred shares we will trade occidental next. i served three overseas tours. i love to give back to the community. i offer what i can when i can. i started noticing my memory was slipping. i saw a prevagen commercial and i did some research on it.

i started taking prevagen about three years ago. i feel clearer in my thoughts, my memory has improved and generally just more on point. prevagen. at stores everywhere without a prescription. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. - double check that. at&t 5g is fast, eh, pretty good! (whistles) yeek. not cryin', are ya? let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that? - huh? what, that? no, don't worry about that. here we go. - asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - yeehaw! - do you have a question?

- are you a certified financial planner™? - yes. i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®. find your cfp® professional at letsmakeaplan.org. (funky electronic music) (narrator) breathe in. jump in. strap in. live in. join in. thrive in. if you're all in, it's all in north carolina. ranked america's top state for business. our customers don't do what they do for likes or followers. their path isn't for the casually curious. and that's what makes it matter the most when they find it. the exact thing that can change the world. some say it's what they were born to do...

it's what they live to do... trinet serves small and medium sized businesses... so they can do more of what matters. benefits. payroll. compliance. trinet. people matter. (funky electronic music) (narrator) benefits. invest in.ompliance. believe in. move in. grow in. build in. thrive in. all in north carolina. ranked america's top state for business. time for today's three stock lunch. first up is disney after a downgrade at the quarry. this comes after the company scrapped plans for its billion dollar campus in florida yesterday. here to help us with that trade, what do you think about disney it is a company that doesn't feel particularly welcome in florida right now. >> yeah.

it doesn't seem particularly welcome in florida and from my standpoint, i think it's been going on for a while but right now it is an opportunity for investors to look at profits, look at the quarter. the most compelling think about disney is looking at disney plus and how they'r wasn't a good sign, but they did narrow losses in the segments. i think it's pretty clear that they're focused on cost-cutting. as you mentioned, scrapping plans in florida it was a $5.5 billion cost reduction plans which includes taking out some content, and the true lure of the stock was shifting towards efficiency and profits, and i think for investors, that might be a time for investors looking to take in profits, but not potentially buying right at this time. >> next up, we have shares up after berkshire hathaway if they buy, would you buy too >> normally.

i'm just going to be holding even though berkshire hathaway is buying. i might stand, but i'm holding, and i think the big thing we're seeing is the math has been down from the highs we saw in 2021. prices are wavering, and occidental did slip, and if you are looking at the bottom of lower demand in energy and natural gas that coming back as we go into summer and the later half of spring, that could boost the stock, and it's a strong dividend play, and i think that is something that investors could look out to as well. >> let's move onto our last stock, and that is applied materials. earnings beat, second quarter. it's not falling though, as investors seem unimpressed by the company's outlook. are you? >> no, i think -- i'm actually impressed by the past performance most recently and the stock did bottom in 2022,

and it's on the verge of a full reversal and there are things i do like. they did have strong results from my standpoint revenues are up, even though margins contracted slightly, a little bit less than expected. diversif the semiconductor business is going strong, and that side of the business going strong, and the consumer side of the displays, that's flat to lower, but the diversification is offset, and i would be buying on this here bid. >> the market is a little bit lower right now, and everybody says it's because the snag that's been hit in the debt ceiling discussions down in washington talk us through how to think this one through, and not get all wound up in what are sure to be lots of twists and turns on a pat path to a deal. >> few look at the prior instances, we have some sort of agreements and abated defaults

we should stick to our plan, and we liked short-term treasury just in the short peterm, in the near term, and we know tech has performed strongly for the half of the year, and it might be time to look into some value plays. we saw what some of the retailers said with consumers looking strong and those opportunities for investors to really, really hone in on companies that have a strong outlook, balance sheets, and they're still producing profits, at a time when there is uncer uncertainty. >> thank you for being with us we appreciate it still ahead, succession race at one of the biggest banks, and the bank that just raised its benchmark interest rate to 97% that and more when "power lunch" returns. i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college.

kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! ♪ yeah, yeah ♪ (woman) with verizon's new myplan, i get exactly what i want. and only pay for what i need. (man) now i'm in charge... ...of my plan. (vo) introducing myplan from verizon. you get exactly what you want and only pay for what you need. and it all starts at just $30. it's your verizon.

ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro. we got a little more than three minutes left in the program, and a bunch stories that you need to know about. let's not waste time as the clock is ticking mor morgan stanley ceo james gorman plans to resign from his position within the year one of wall street's top firms some candidates include those leading the three main businesses at the bank ted pick, andy sapperstein, and gorman saying he has no plans to go out like logan roy in

succession he and -- >> no, no, no. don't say it >> we didn't know this >> wait. you're about to give me the spoiler and i haven't seen the rest of the most recent season tyler was about to ruin it for the rest of us. >> that was weeks and weeks and weeks ago. >> here's what i want to know. what does the office pool say? inside morgan stanley right now, what are the office workers saying what's the over/under? >> the inside might be to sapperstein who was the head of their wealth management. one of the things that gorman has done there is turn the company away from more of a trading and ibanking company, and more into a steady stream wealth and asset management firm that might argue that the person who runs that business, sapperstein, might have an inside track >> 12 months gives us time to let the drama play out. the u.s. is dealing with interest rates rising to 5%. this argentina's central soaring

year on year inflation hit 109% throughout the country the stock market is still resilient. it's up 65% this year. wit what the leaders of the country say is there's been an outflow of investments given the volatile inflation crisis. they're hoping that by raising the rate so high they actually see some investors coming in and investing in the argentinian peso, but 97%, i mean, you have to just wonder what kind of impact and how long will the effects of this be seen? >> you want to get paid in dollars. that's the only way to really protect yourself, i suppose. "wall street journal" identifying millions of vehicles' air bags linked to a safety recall. the safety administration demanded a recall of 67 million air bag inflaters made by arc automotive due to concerns that they could burst during a collision and spray metal shrapnel regulators have not yet released a total list or number o

vehicles impacted by the recall, but the journal estimates that the inflaters could be in at least 50 different vehicle models across 15 brands, and of course, this would be another recall involving air bags. takata, of course, a multi-year across dozens of brands costing them millions and billions of dollars. >> arc automotive denies that too. they say these were really isolated cases, and they haven't been able to pinpoint a problem. meanwhile, hyundai and kia have agreed to a $2 million settlement after car thefts sparked by a tiktok challenge. thieves known as the kia boys posted instructions on tiktok and youtube on how to bypass the vehicle's security system using tools as simple as a usb cable, and they'll agree to $200 million, about $145 million is going to be set aside for people who actually had their car -- >> had their car stolen. >> there are injuries and maybe even deaths that were linked to this as well from people who

tried it, and got hurt in the process. >> accidents >> absolutely. check of the markets here. we're seeing them lower. the dow jones is off 80 points or about a quarter of a percent because of the stalled debt talks. >> good to have you here >> you too >> have a nice weekend thanks for watching "power lunch. >> "closing bell" starts right now. thanks welcome to "closing bell." i'm scott wapner here at the stock exchange former fed vice chair terrricha clarida is with us this make or break hour begins with more debt deal uncertainty, and it is weighing on the markets yet again today. were the republicans negotiators called to pause in those talks and that's pretty much where they have been the s&p coming off the tightest close of the year, sitting at that 4,200 level for most of the