has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. ♪ good afternoon, everybody. welcome to "power lunch. alongside kelly evans, i'm tyler mathis stocks shrugging off yesterday's rally. a big downgrade u.s. banks from moody's stock showing serious volatility plus, lots of earnings related moves. we'll break them all down. plus, edge of your seat concert inflation becoming a big

issue. ticket prices, travel, accommodations, all expenses we'll talk to the ceo of vivid seats about all of this, kelly. but first, a check on the markets which are recovering after some worrisome early trading. the dow is down 466 the lows and little shy -- 268 right now, pretty big volatility in both stocks and in bond yields which went below 4% before reversing a little above that level. while everything else is down, healthcare names, some of them, bio tech are booming lily is soaring on positive results fueled by its obesity drug push. more on that in just a bit with the shares of almost 14% same for novo nordisk. the banks, moodies cutting the ratings of ten u.s. banks. leslie picker is here with more. these we call them the big regionals and maybe some of the trust banks. is that right? >> that's exactly right. there are 27 ratings actions in all, all along this same thing

interest rates likely to remain higher for longer. amid quantitative tightening assets, loans and liabilities deposits, risks associated with monetary policy, have been pressuring profitability and regulators are layering new potential rules on mid size banks that could cause them to ultimately pull back on loan making which could, of course, affect profitability as well then there's that canary known as commercial real estate. talk about it all the time on this show. particularly office buildings and certain pockets of the country that have plum meted in value due to the prevalence of remote work. q2 earnings releases informed the ratings actions which is interesting because prior to today's move the kre was up a whopping 20% since quarter end and some major issues that the ratings agency flagged have been pretty well telegraphed from the prior round of actions from the regionals in the spring. even as equity investors have been willing to look past some

of the major industry head winds, investors have not been as sang win. options on a handful of small cap regionals imply 15% chance of fdic seizure. so perhaps today's move by moodies is serving as a reminder that even though it's been a quiet summer on the regional banking front, we may not be out of the woods quite yet although there's a lot of debate whether the worst is behind us >> so why now? why now? and were these downgrades anticipated or could they have been anticipated >> they weren't anticipated by the market that's clear no nobody really expected this to come today. why now? we have seen the bulk of the earnings releases from the regionalins in this point in ti. they were able to collate the income statements that informed the ratings action >> yeah.

that said, if this had happened a couple months ago, could you imagine the impact certainly if it happened back in the thick of the days when we were most concerned about the banks. could have really sparked -- not to minimize the moves. now that we know this is priced in, the real question is not so much about moody's it's really about economic activity 6 to 12 months out clearly retrenching under pressure and facing some future losses and problems as described. >> that's it of course it's going on with the the ten-year and all the volatility on the rate's picture. you have quantitative tightening and all this issuance and monetary policy in japan that's also impacting the various flows. so, all of that plays into what you're seeing with banks, whether it pertains to their deposits, whether it pertains to their asset markings and then there's an overall confidence issue that remains in the balance as well that was one thing that moody's pointed out in their notes this idea that it's unclear the way that these things are accounted for what the level of capital is.

you saw that, of course, with silicon valley bank. how much capital you could have in order to fulfill some sort of bank run nothing has changed in terms of the technicalities that caused the silicon valley bank run. they had definitely idiosyncratic issues containing to customer base, concentration levels uninsured deposits those are very specific situations, but the sheer amount of deposits that fled, nothing has really changed in terms of the picture that would keep deposits in house anywhere else. >> true. >> yeah. leslie, thank you very much. good to be with you. thank you. bank downgrades adding to worries on wall street the dow falling as much as 466 points at one point during the day. while off those lows now, the volatility is here the highest level since may. for more on the markets, let's bring in jeremy brian, senior portfolio manager and mike santoli in the discussion as well jeremy, let me begin with you. how important is this bank

downgrade in the overall market picture? is it a one day story? obviously it wiped out all of yesterday's or most of yesterday's 400 plus point gains for the dow. >> yeah. where we really needed this was march 10th we didn't need it now. to be completely honest with you, i don't think this is a long-term, long-tailed story, unless things are getting incrementally worse than we heard in earnings. we have gone through all this analysis at this point now we know what deposits look like. they're not falling off the cliff even though they're not paying them a whole heck of a lot. we know that we know capital ratios are still fine and the earnings estimates come down for these banks. so for them to say they're e eroding income we, a, priced it and it's in the estimates as well. so i just don't see this as really a long-tailed type of down slide for the market based upon this moody's downgrade unless something incremental comes up that we didn't see from

here. >> mike, how about you is this a one-day story or something more >> probably the moody's action is a one-day story it does reconcentrate attention on the chronic issues in the banking sector, which are really macro issues do they have stale valuations on commercial real estate that will show up down the road? is there going to be a pinch in general credit creation they have funding and earnings pressures. i think that's one element of it this started three or four weeks ago, i think it started to become clear that the market had taken an awful lot of credit up front for we're going to have an economic soft landing, we'll have a benign macro scenario for a while the fed is just about done earnings are dropping the second quarters are coming back all that still looks like it's in place it's just that the market already arrived at that moment so anything that disturbs the happy picture is going to have a result in the seasonally weak period of the year like august to me it feels like normal choppiness the s&p is exactly where it was three and a half weeks ago when we got to that overbought point

and started to hear people say maybe it's enough for now. >> so jeremy, what kinds of stocks do you think -- let's set aside the regional banks, the mid size banks for now where do you think the targets of opportunity are in the market >> yeah. what we have been looking at a lot lately is fundamental momentum that maybe the stock momentum hasn't quite caught up to yet where earnings estimates are stable to growing and honestly in the stocks haven't reached their a 52 week highs yet and valuations are relatively cheap so we're looking for areas outside of where, hey, the magnificent seven that had really substantial runs here we're looking for areas outside of that and maybe the next leg of growth going forward. and so companies like united healthcare fit that bill air products fits that bill and metlife fit that bill. what is the common tying bind, even though these are very different businesses is that their momentum from a fundamental perspective, what they're doing on an earnings perspective, what they're talking about in their

commentary was all relatively positive and looks like they're in an accelerating profile now the stocks have rallied a little by here, but we think there's quite a ways to go for all three of these names we bought met a day ago. and we really think that once we look through their earnings that a lot of the fundamental operations there are pretty interesting. >> mike, do you think we're going to be in the choppy period for a while here >> it would make sense, kelly, we are in for a little give back it's a future of bull markets. it's not a bug i do think that the up trend that we got over the last few months, the fact that the market did broaden out through june and july has sort of gotten the benefit of the doubt toward people who were saying, look, it's an up trend if we have a 5% pullback from the highs, it's probably not going to change that broad effect. this is a weird cycle. and i mentioned the seasonals. they start to stay kind of unfriendly for a while through the fall, if that's what's going to matter this year. but i do think it makes sense

that we -- when you see the reactions to earnings, especially in some of the big, high-performing nasdaq stocks and the markets sort of effectively saying we knew it was going to be good it was good. we paid up front for it. it's time for them to back off a little bit >> indeed. all right, gentlemen thank you. jeremy brian, mike santoli, we appreciate it. with the dow 200 points off the session lows. beyond the bank. some key earnings moves we're watching today including eli lilly, shares up almost 14%. we'll speak with an analyst who raised their price target on the stock by $115. the stock is around 515 right now. plus, it's been over a year since the $53 billion chips act was passed in the house and yet chip firms are still not seeing government funding we'll talk about the implications when "power lunch" returns. let innovation refunds help with your erc tax refund so you can improve your business

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welcome back beyond the bank, some key names reporting results. three in particular had some unique factors that drove or held back their results. and let's start with eli lilly, whose shares were up as much as 17% earlier thanks to a stronger than expected second quarter result and a guidance hike obesity drug mounjaro increased by 85% wells fargo equity analyst just raised your price target by $115 so where does that leave you

>> thank you very much, kelly, for having me. yeah so, we are very excited about eli lilly. quarter was good but more than the quarter, the stock is up due to the result from competitor novo for their weight loss drug wegovy. >> right so let's talk about it for months people have waiting these trial results really because they want to know if employers and insurers are going to cover the costs of $1,000 a month of these drugs or not if they can show an economic outcome where it reduces cardiovascular problems. that's easier to justify coverage because basically the companies can argue they're not just going to see a huge increase and spend will be offset by more spend here and less spend elsewhere how significant do you think it is for eli lilly and novo today.

>> this is a big moment. just like you pointed out, it was just aesthetics drugs. they were making you look better these are a definite health benefit they have provided for lily, this is significant because right now the access is significantly limited. providing commercial access. medicare has no access we think this data set which shows 20% improvement from cardiovascular benefit puts this drug right at the same level as other cardiovascular drugs and it does start the discussion like you mentioned the health economic benefit of these drugs which was not present until now. >> when you look at some of the drugs they have, you see just huge increases in revenue sales here

verzenio up 57%. mounjaro, 979 million in sales in the quarter, up from 60 million in sales in the year ago period those numbers are really extraordinary. can they keep them up? can they keep them up with respect to mounjaro which is the big block buster and second question is, does mounjaro have more cardiovascular effects than wegovy. >> right for your first question, there's some quarter over quarter improvement which you see which is more than normal. we do think this is the industry-leading growth profile. driven not just by mounjaro, they have another drug that

showed strong results back in may. we model this company growing at more than 15% year over year for next few years and that translates into 25% plus growth for many, many years to come here now the other part you mentioned mounjaro, i think at this point the growth will continue the reason is novo, they probably don't have supply to cater to the demand at this point. talked about a new plant which is fully functional. even though -- >> so back to my question. if we can just tie it off quickly there, is it possible that mounjaro will have the same or better cardiovascular benefits than wegovy >> yes mounjaro provides 22% weight loss, wegovy 17% by that logic, it does seem it

could have better cardiovascular benefit. >> mohit, thank you very much. we appreciate your time. very favorable rating on lily. u.p.s. the delivery company missing on revenue due largely to the impact of labor negotiations our next guests maintains his buy rating on u.p.s. with $212 price target let's bring in amit, transport analyst with deutsche bank welcome. good to have you with us. >> thanks for having me. >> the revenue miss, i guess i'm perplexed that it would have something to do with the labor negotiations because that contract really hasn't even gone into effect yet. but explain why the labor negotiations affected the numbers today. >> well, there's two real differences here one is with respect to the second quarter you're absolutely right. the number of packages per day that u.p.s. handled were down about 2 million per day. about half of that related to

diversions that the customers implemented as a result of the risk of a strike. >> ah. >> in early july. >> gotch ya. interesting. interesting. that's why you do what you do and why i do what i do so, that gets out of the way let's look then deeper down the field here at what the labor agreement, which is going to raise wages rather significantly, particularly in year one and also i think in year five, what is that going to do to the company's profitability? how can they blunt the impact of that do they have the pricing power that whole cluster of questions. >> well, absolutely. i mean, we at deutsche bank could not be more bullish about u.p.s.'s ability to grow profitability. we predict over the next several years this company will report margins that are higher than they ever have and thought that they ever have this is truly a win/win/win deal just to give you a sense we can focus on year one or year five

look at the cumulative five-year effect of this deal, the average labor deal is 3.3% a year. let's be clear, you know, u.p.s., teamsters employees are the highest paid in the industry and they deserve that. and they are getting corresponding increases. but this labor deal in our analysis i would say we have done more work on this than i think anybody here at deutsche we believe that this is a company that will be on the path for profitable growth for many years to come. >> and what then does that look like for the share price at 180 now? >> it will go higher i mean, we have a $212 price target but let's just break it down today the company trades at about an 18 to 19 times forward earnings that means this year's earnings. that's a discount where the s&p is trading today companies multiple should expand when you translate that to the stock price, kelly, to your question, we're talking about

19, 20 times earnings expectations, maybe 13, 14, $15 over the next three years. we think this company can trade well into the 200s we have a price target of 212. that's a 12-month price target we don't see any roadblocks especially as we enter the second half of '24 we think the kufb of the cost of inflation really moderates in the second half of '24 that's why last thing i'll say, that's why earnings expectations are coming down 10% this year for this company and the stock is basically flat. i think the market is telling you that this company is primed for a lot of upside once that curve on that inflation moderates. >> all right amit, thank you very much. we appreciate your time today. and our final name in the earnings run down is amc those shares are down despite a second quarter eps in revenue beat it was the strongest second quarter in four years. this is the entertainment name we should emphasize. helped by a jump in attendance,

66 million movie goers highest quarterly attendance next guest still perceives trouble and has underperform on the stock. alicia reeds covers media and entertainment at webbush not much of a share reaction either what do you make of that >> right there's a lot of positive to point to in the quarter. i think had a really nice quarter. able to hold on to market share gains that they had gained during the pandemic. even growing the year over year on that. and that's despite a little share -- sorry, screen decline closing underperforming screens as those contracts come up for renegotiation. and improving their operating metric as they go along. concessions profitability was greater than or in line with pre-pandemic averages. that's 30% less attendance on those -- against those years so as that attendance starts improving on a higher volume of

films, we expect amc to continue with nice number the overhang, however, is related to the pending court case that still does not have a resolution and also the hollywood labor strikes. if they continue for much longer, this could create quite a hole in the relief next year perfect storm, there's still no resolution or amc is not able to hold its ape shares back into amc and they'll have some -- bit of cash issues next year if there is that slight hold. >> how do you take apart those ape shares and the regular common and the controversy around them? what's the resolution here what's the affect on the company now and potentially? >> sure. so, at the moment they can use -- they have ape shares can issue. it's trading at significant discount on amc shares they have to rely on ape shares to raise cash, they will need to

do, that will cause significant delusion of the stock. if they're able to convert the apes, the legal case falls in their favor, they're able to convert the apes to amc shares and sell those for -- they'll get more cash for less solution. that benefits them if that happens and they must raise cash to deal with the release slate holds, that doesn't improve their position materially but does cause delusion the hollywood labor strikes resolve earlier, we might have some near-term disruption, but maybe not much in the way of 2024 and then amc with all of that, you know, falling through, favorably for them, they could be well positioned. >> if the company chairman were to sit down and write a note to "barbie" what would it say >> thank you very much we really appreciate all the marketing efforts around that film. >> all right he'll be wearing pink for the rest of the summer alicia, thank you very much.

alicia reed. coming up, vivid seats 8%. company reported results as well as the key acquisition we'll discuss that, as well as ticket prices. consumers and taylor swift as we head to break, check out shares of international flavors and fragrances having its worst day on record. down 18% after cutting full-year guidance because of weakening customer demand. "power lunch" will be right back

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all right. welcome back, everybody. yields showing some volatility, along with stocks today. let's get to rick santelli who is tracking the action the ten-year little above 4%, rick >> yes hovering right around 4% the low yield today was around 3.98, that happened a bit earlier. but the big news continues to be that short maturities, well, you can't keep them in stock it's like sweets investors can't get enough of them case in point, today's 42 billion three-year note auction, boy, it was an aggressive auction. i gave it an a-plus. you can see the drop at 1:00 p.m. eastern now if you look at three-year since friday's jobs, jobs, jobs report, you can clearly see it

keeps moving lower as a matter of fact, whether it's the two-year or three-year all short maturities are in their happy place with respect to investors and if you put a march 1st chart up, you can see whether it's a two-year or three-year they failed to get a new high yield close in early july, especially once the two-year in particular was above 5% that changed everything. then, let's look at the spreads to give us the next clue if you look at 2s, 10s on the same chart as 330, once again, inverted rather dramatically and that shows the appetite for short maturities is hotter than long maturities but shows you something else you see on the chart where it really started to deinvert, the 25th and 26th of july, two day fed meeting. kelly, back to you. >> rick, thank you very much that a-plus certainly got a lot of attention. what about oil still higher today and up more than 10% in a month while consumers might focus prices at the pump, higher energy costs

filters through a lot of the economy. >> oil turned around at 12, 1:00 p.m. today after the short-term energy outlook from eia. but fell significantly after that data from china missed on the imports and exports. port oil imports down 18.8% between june and july. however, over the last year, they were up 17% compared to july of 2022 so it isn't quite as ominous when you look at it on an annual basis. but prices are going up. up 11% that does create a headache for the federal reserve. as you mentioned, consumers see it in prices at the pump but in reality, energy filters through to every area of the economy. so john, over at again capital said he thinks $90 wti is when the soft landing could be in jeopardy we're not there quite yet. we are inching closer to that. one other area to watch is

heating oil futures. that is a proxy for diesel at the highest since february and so that starts to create a hoik for things like truckers and freight and anything that's transported it has higher diesel cost. >> obviously all filters through as you make the key point here it filters through and it's going to affect the consumer price index, cpi whether you look at the headline number, the core number will be different obviously. take that energy but you can take out energy prices, but those energy prices do filter in through the product. >> exactly exactly. >> aren't taken out of the core. >> you can't energy is the economy. so while the federal reserve and the central banks look at that core number that strips out energy and food costs which are typically more volatile, energy underlines everything. even just in terms of production, plastics comes from oil. and so all of these things -- >> containers, whatever it is. >> exactly and there's like a freight tax for everything that's transported when you get those higher prices. and so even when you take out

and just focus on core, energy is everywhere. >> pippa, nice to be with you. thank you. appreciate it. let's get to seema mody for cnbc's news update. >> tyler, good afternoon the faa is referring nearly two dozen cases involving unruly passengers to the fbi. the allegations against some of these passengers include making terror threats, attacking flight attendants and trying to break into the cockpit the faa ken levy fines up to $37,000 but can not file criminal charges that's why these cases are going to the fbi. a member of the so-called tennessee three just launched an exploratory committee to run against gop senator marcia blackburn in 2024. gloria johnson, the only one of the three democrats who avoided expulsion from the tennessee house filed the paperwork late last week. johnson and her colleagues garnered national attention when the republican-controlled house started expulsion proceedings following their gun violence protests and get this, police in

charlotte, north carolina are telling people to be on the look lout for a 900 pound bull. the long horn got away when his owner tried to move him to a safer space during severe weather last night anyone who sees the rogue bull is advised to keep safe distance before calling the police and as someone told me recently, never turn your back on a bull they can still attack. >> that story is not a lot of bull, right? there you go >> wild. >> seema, thanks appreciate it. be on the look outfor bulls. ahead on "power lunch," boeing, delivery, they fell in july. struggling to keep up with its chief competitor airbus. details when "power lunch" continues.

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welcome back boeing deliveries fell in july as the aircraft maker struggles to keep up with customers clambering for new jet phil lebeau has more details for us hi, phil. >> hey, kelly. yes, the numbers were down in july, but you can't really go month to month with boeing you have to look at the progress over the course of the year. they're going to be passing the total for orders some time this

fall, relative to where they were last year for july, they logged orders of 52 planes. that brings their year to date total up to 467 and the backlog now stands at just under 5,000 planes the deliveries are really what wall street is more focussed on. the deliveries in july, 43 planes most of those being 737 maxes. the year to date, 309 planes have been delivered they will probably pass last year's delivery total some time in the next couple months. shares of boeing, keep in mind they are increasing not just 737 max production and 787 production so their delivery numbers will be greater in the second half of this year. as you look at boeing and airbus, also keep in mind that these guys both expect several larged orers to be placed in the second half of this year so the momentum we saw in the first half and at the end of last year in terms of new orders, very large orders, that

is expected to continue in the second half of this year. >> where will those large orders come from? >> a lot of leasing companies. we heard from a number of the airlines and we'll hear from some airlines, but we will hear from a number of the leasing companies. they are the ones who still need to place the large order to get a slot in line. >> very interesting. so even bigger than the orders from chinese airlines or emirates or dubai would be these leasing companies that then do what, turn around and release the planes to the operating airlines >> well, they don't release the planes they buy the planes. they buy the planes from boeing and airbus then they will lease them to airlines around the world. >> right, right. very interesting okay, phil thank you very much. phil lebeau reporting on boeing. still ahead, the waiting game nearly a year has passed since the chips act was passed to help kick start production of semiconductors here in the united states, and yet manufacturers still waiting on much of that funding

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we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

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welcome back to "power lunch. shares of ticket exchange and resale company vivid seats lower today despite reporting beats on both the top and bottom lines and hiking full-year guidance. yesterday, vivid announced it's going to acquire wave dash in japan, marking first foray outside of north america joining us to discuss is the ceo of vivid seats i asked one of our prior guests regarding amc, the theater chain if she was ceo, what would she write to "barbie." what would you write to taylor swift? >> thank you for having me, tyler. you're an amazing artist and performer. thank you for putting on an amazing three-hour show for all your fans. >> her show in l.a. looked absolutely remarkable at sofi sta stadium. it was really something. so let's talk about this acquisition of the ticket company in japan it seems to be weighing on the stock a little bit today

>> yeah. look, i'm excited about all the things we announced today. you know, i think if you look at all of our strengths here as we built a profitable scale and growing company that continues to beat expectations, right, as you said we beat 27 on the top, 27 on the bottom today i think we're excited to take those talents and look a what we can find internationally we look at wave dash, we were able to find a company that is scaled as the secondary market leader and profitable. so we looked to be excited about what we can continue to do with what we have here as we look to expand and learn more on the international landscape. >> let me ask you a sensitive question that's driven in part by personal experience i'm a customer and i love what you do and i have used your product very successfully to buy and sale tickets where i have issue is in the fees that are charged. what is the average fee on a

ticket for, let's say, a high-ticket concert like a springsteen? what do you charge and what does the consumer get for that fee, which to me seems high >> yeah. for us, you know, i think when you look at it, we're a pretty stable company in terms of our take rate, which is really our fee. when you think about our marketplace again being a company that connects buyers and sellers. the pricing really isn't set by us on the ticket and where we've always looked to innovate and invest on is to make sure -- >> not on the ticket, sam, but on the fee i get that the seller is setting the price on the ticket basically. in other words, if i'm willing to sell my seat for $375 the next person in the next row back may be willing to sell it for $325 but i'm asking about the fees specifically. >> absolutely. yeah, for our fee, we continue to invest in elements that we

believe are largely valuable to users. we're the only ones out there with a loyalty program and our loyalty program has economic components, buy ten, get one free so if you think about that, that's almost half of your fee off as you accumulate rewards and earn them. we also have surprise and delight programs as you buy and you get rewarded, we'll upgrade your seats so you'll get a better seat than what you bought with us. and we also invest in our customer service we have been recognized now by news week as best customer service in ticketing for multiple years we continue to take that fee and try to reinvest that into areas that are valuable to consumers >> so what happens if it goes away the biden administration is trying to crack down on these fees, aren't they? >> look, i think we're looking at making sure that what we, we as a company, charge to our users that they continue to find value in a platform they can discover events, earn loyalty and certainly what is out there in terms of transparency we're big supporters of. i think consumers should know

exactly what they're buying. >> could you do something where you become an industry leader by going to a fee-free price now and try to set the tone knowing the regulation is coming any way? >> yeah. i think how we think about things, we look to make sure that, you know, principally we are doing things on behalf of consumers and protecting their rights and that we're also ensuring fair competition so i think we've always been leaders in driving a loyalty program and driving best customer service as well and certainly on the fee front as we look at regulation that's coming, we're very supportive of all of the efforts in that area. >> are the fees that you do charge, are they based as a percentage of the ticket price or the sale price? and if so, what is the percentage or does it vary? >> yeah. our fees are charged as a percentage and they vary based on the event type. as you can imagine, i think there's just certain things where we have costs that we need to recover based on the price that will cause that variance. but if you look perhaps at the

indicator for us, we have always been fairly stable on our take rate as a company. and if anything, when you see some of that coming down because of loyalty, i think you can see again our investment in giving back to the consumer in terms of what they're paying in terms of fees. >> what is the take rate i don't knowfees what is the takeaway what does it mean and what is it you said it's a percentage of the ticket sale price, but it varies what would the range be? >> when we talk about our earnings, for example, this quarter we announced weed did 954 million in growth order volume on that we delivered 165 million in revenue that revenue is our case range so you can think of that in the area of 15.5% and that is where you step down where we have thoughts that power the service, to power loyalty and that's how

i think about that and we've been stable with that in term was our entire history >> thank you for your candor today. we appreciate it >> thanks for having me on >> all right the $63 billion chip stack signed into law a year ago tomorrow to jump-start the semiconductor manufacturing in america, but today manufacturers are still waiting on much of the funding. kristina partsinevelos now with a progress report. kristina >> we're celebrating almost one year and construction sites like this have been popping up and they created this facility here in north carolina each though they have not received any federal dollars. i poke to ceo greg lowe, and he told me they're spending as much on all of this as they're getting on an annual basis listen in. >> our capex on percent of

revenue and getting government support to build this technology will be roleally important. other companies have had to put their plans on hold because they haven't received government aid. listen in. >> there is no commercial, viable way to bring support which is yet chips act was passed in the first place. >> this chips act consists of $53 billion which will be dispersed over the next five years. the earliest that companies will see money is at the end of this year listen in. >> you know, i'm pushing the team to go fast, but even more important, to get it right >> so the commerce department clearly has their work cut out for them they rushed and hired 140 staff members. they have to go through 400 statements that are in the beginning stages of the application process which means all of these companies will still have to wait for those

funds. >> yetwhy the holdup why is it taking so long from the standpoint of the company? >> this is me editorializing and i think they underestimated how many companies would come forward like samsung, you have all of these applications and they have to follow the stipulations and provide child care and hire a certain number of workers and no buybacks and engage in a certain threshold and because of that, it's created a whole lot more work and you have to hire 100 more staff members and the government doesn't spend money at this point. at some point they'll need to see it come through and it announced that the corporate bond facility and i don't think they ever have to buy a bond and their best stuff was enough to stabilize the market >> they'll say hey, look at the economy that's being built around this. this is the massive, massive facility and there will be

restaurants that will open up in the near region and it's going to help the local economies, but there does need to be some type of kickstart for these firms like integra and skywater that can't afford to do it themselves because this is nine football fields, nine football fields >> it is massive and it is fun to go see it and get a sense of the size and scale of that >> i don't know why i did that i have no idea why i did that. >> giving it a kick-start, in the commercial >> kristina partsinevelos, thanks so much be safe down there >> other big stories we're watching "closing time" is next for colon cancer.♪ ♪it's time to use my voice,♪ ♪i've got a choice, more than one answer.♪ ♪i sat down with my doc.♪ we had a talk. ♪knew just what to say.♪ ♪i asked for cologuard and did it my way.♪ cologuard is a one-of-a kind way to screen for colon cancer

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policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. welcome back only three minutes left in the show and a bunch of other headlines to get through let's get through it it's been rumored for weeks, but now on the official that july was the hottest month on record. july's global average temperature hit 62.15 degrees fahrenheit and it beat the record of 61.13 set in 2019. >> it's in the southern hemisphere, as well. as a person who came back from southern africa where it's winter and she said it was a heat wave. >> same in brazil, i think it was 100 degrees during their winter >> really, really hot. >> we touched on this, and novo

nordisk said it could cut risk of heart attack or stroke by 31% compared to a placebo. analysts say it could go a long way toward increasing the sensibility to drugs since it would have a medical use rather than a cosmetic use and it's not just an obesity drug, but also as we spoke later this hour had knock-on effects for other drugs in this class like mounjaro and eli lilly trading at an all-time high >> once you have savings with cardiovascular problems you will be having more insurance plans able to cover it people are starting to pull back because it's too expensive and now they'll be able to justify and a very big deal for market access who doesn't like a sequel? now it's going to host the second one in october? have they done this before it will be offered in 19

countries around the world and analysts are accepting amid economic inflation >> it's a way to get more sales in and they need that. >> i think they did -- but then they also have the actual black friday coming up, at what point does it cannibalize and many they're wishing to pushing it to the point. >> if you like the taste of champagne, folks, enjoy it b climate change could change it forever. >> the stocks beautifully, but you can only get champagne by the 2050s thanks to soaring temperatures and extreme weather events and that means champagne production would have to change locations and in turn, could change the taste of bubbly as we know it. i forget how they describe the different tastes. >> i was just reading it, it's

sweeter and almost a little bit richer and they no longer have to add sugar more palatable for some of us. >> go have a glass of champagne wherever you are right now i urge you to do it. >> thank you for watching "power lunch. >> "closing bell" starts right now. welcome to "closing bell "qwest i'm mike santoli in for scott wapner at the new york stock exchange this make or break hour starts with a mild disturbance with a reminder of retail bank challenges and a growth out of china overnight wobbling the tape and you have debt options and tame bond yields and apple shares have all got the index as well off their lows as we head into the close which brings us to our talk of the tape. is this a routine mid-summer pullback to help us digest gapers on the start of a more setback? here to discuss all of that is