note as china finally gets the message. they are bleeding out these liquidity measures. i think they will continue to do so. this is a great entry point. and, amy, thank you, i'm glad you said goldman. you are much smarter than me. >> thank you, weiss. joey. >> minor pullback in marietta. >> tao is good for 200, three and 20 is higher. closing bell exchanges now. i'm john ford and kelly evans. powell check, tce and jobs on deck. you want to figure out where the markets go from here? there is one event our guest is watching for clues. one is with the ticker and the trades she likes. plus, from the economy to national security, it is completed and costly when it comes to u.s. china relations. fixing one of the concerns could come with a $40 billion

price tag. details are ahead. and, beyond the atrix. we are getting to report as of the ev race heats up to the exit i enter the trade and to the retailers on deck as we begin with today's market. >> they are pretty positive, john, has been also sharing. what we want to take a look at right now is a market that is tilting to the upside. the ozempic hundred itting solidly above the 4400 mark. 4432. they are up 26 points, roughly one half of 1%. a similar advantage for the blue-chip dow industrials. it is up about 225 points. again, positive but obsession high-speed the nasdaq composite about record is 1%. 13,006 ninety six. the reason why i want to bring up the nasdaq is because we have seen a little bit of a reversal. technology was one of the bigger ladders in terms of sectors overall. it has turned around. one of the reasons why was and

underperformance in meta nvida. as you can see earlier today, we were negative and we are solidly positive, up nearly 14%, about three quarters of a percent right now. in intraday reversal in nvida. the best performing stock in the nasdaq 100 and the ozempic hundred has shown a little more of a hovering around current levels right now. we will see whether or not that momentum stays that way. a stock that has been very much to the upside, maybe losing just a little bit of steam relatively on a very short-term basis. and, john mentioned the china stuff happening. on the ev side, that's one part of the story, china is taking measures to try to prop up its stock market but am not sure if that is good or bad or whether that is a good or bad sign. what we are seeing is positivity in chinese stocks

listed here in the u.s. alibabi, jd.com, pdd holdings, these are decently high, maybe up the best doubles of the day. when it comes to china and the internet, big technology companies, the chinese government is taking active steps to prop up the economy. whether or not have stating moment with these chinese names remains to be seen but it is a big conversation a lot of folks are having about just how much momentum is left. i will send things over you. >> we will have more of it now. speaking of china. our commerce secretary gina raimondo pushed the importance of a strong relationship between the u.s. and china peaches that she was ready to work together to foster a stronger policy environment. let's bring in someone familiar with gina raimondo's role, former commerce secretary carlos gutierrez. welcome. now, you say that chinese president xi jinping's motivation has been to reestablish the communist party script on the economy and that this trip is unlikely to yield to measurable results.

so, what is the function of these trips for china's leadership? is it to project a strength internally? >> i believe that xi jinping saw, this is their point of view, saw that the state, the party was given up ground, was being overshadowed by other institutions to foreign companies, chinese companies. universities, ngos, consultants. and, what he has been doing over the last almost a decade is restoring the control, the central control. having said that, in the meantime, the economy has not performed, especially now, whether it be covid-19 with the property market, the stock market, consumers. and, this is a sign, i believe, that they are shifting toward the economy. after having achieved quite a bit of control. look at the outcome of this

meeting, just the fact that the meeting was held i think is very good news. that means both sides are talking again and are willing to move forward. so, the 737 max was good news. we also took a number of companies off the unverified list. so there are signs that the relationship will be restored to what it once was sometime. >> is that even possible ? a colloquy in america tend to view engagement as a positive in and of itself but over time, when it comes to china in particular, engagement hasn't always meant what we thought. to go to the economy for a moment, what impact do you expect china's real estate woes are going to have on the economy and on the public company is based there, which dom mentioned are higher today?

property has been one of the drivers from the very beginning. this is something where the central government was raising a lot of money. so, absolutely. property will have impact, it is already having an impact. i'd expect it will continue to affect companies in the stock market. i saw, look what you had out there, that could also be just a sign that the u.s. and china are talking, which is a very good sign. i think we have all been expanding this. we've all been asking for this. again, i don't think that there will be some very specific chips or asks or outcomes of this meeting. they are probably saving some of those outcomes for a meeting between president xi jinping and president biden. the fact that they are having this meeting is a very big step forward. >> you mentioned presidents,

allies and rivals to the u.s. are starting to weigh the likelihood of a second trump presidency. how does that affect the way that china is going to deal with us now and the way the biden administration should deal with china? >> i think another trump presidency would create uncertainty. and i think that is just the nature, the style of what is the policy to china, who knows. we know what it has been in the past, the tariffs are still in place. but, it just, it creates uncertainty. and, when there is uncertainty, people can use it to their advantage. but, it doesn't yield results. >> does that mean china is going to want to try to do certain things to lock in either agreements, connections, consequences? should there be a president next to is more likely to want to raise tariffs and rattle the

saber? >> well, it could be. in terms of formal agreements, i don't know what can be done between now and year-end. but, things are not congressional bills, this is not signed into law. so, if a future president wants to change this, a future president can do that. that, of course, is part of the issue. the one thing that remains content, constant by the way its export controls. this is part of the tension in the meeting. i don't remember a time when export controls were taken off the list. the list started in 1989 and we just added and added and secretary gina raimondo to the great job up front saying we are not going to negotiate matters of national security. so, export controls are off the table. one of the issues in negotiating with china is not we will go in with 10 different tasks and they will have one, export controls, which makes

negotiations somewhat tricky. >> all right. former secretary carlos gutierrez, thanks for joining us here on the exchange. i do want to mention upswing in the dow and the mike santoli just as the extent was beginning has us closer to the highs of the days so far. cooperation is a key part of secretary gina raimondo's visit. she is making it a point to reiterate there is no room for compromise or negotiation on matters of national security. that includes cybersecurity, where the federal government is now warning of a hidden threat to america's infrastructure. >> that's right, john. american officials are scrambling to make sure potential weaknesses in the software used to operate american and for tructure of not been penetrated by chinese and russian hostile actors. their focus in on the threat to so-called open source software, developed by hobbyists and others and put in the public domain, software companies are using structure systems use large chunks of open source

code in their programs. the fear is hackers could be developing this code, releasing it to the public, which cedes vulnerabilities in the open world. on august 10th, the cybersecurity and for structure and infant security agency asked of the open source community for ideas on how to secure the code. a government official told cnbc that they plan to release a draft national strategy for open source security in the months to code. a separate security firm highlights the pencil threat, researchers at fortress information security discovered that 90% of the product used to manage america's energy grid contained contributions from developers, who said they were from russia or china. and, they say russian and chinese open source code is three times more likely to have vulnerabilities than code from other regions. fortress estimates the cost to replace all that could be a staggering $40 billion., huge costs, not likely companies are going to pay to replace all of that software or bear all of

that cost. cisa is making it clear it believes software companies that consume open source software should be able to contribute back to the security of the overall software as well, john. >> that is, it appeared i know there is a specific move insecurity that is called a trojan horse. really, what you have in this open source contract is a trojan horse situation when you get a gift of code from maybe a russian or chinese developer. inside, there was a vulnerability, right ? >> that is exactly it. from the hostile actors point of view, if you are the hacker trying to put this into the world, you don't know where it is going to go, did kind of write code that the specific tasks, put it out on the open source platforms and wait for someone to adopt it and then, later on, go and check and see if the vulnerability made it into the final product. it is sort of a speculative gamble on the part of hackers to do it this way but there is concern now that that may have happened and, the trick is going through all of that code and finding out which lines of

code are secure and which will lines might have vulnerabilities. that will be an expense and someone will have to pay for it. >> sounds like a job for ai, maybe. let's do some more on this. countries like china, russia, north korea all have well- funded and sophisticated cyber attack programs. the next guest says the origin of attack are becoming less important than preventing the attack in the first place. a i might offer the best defense. joining me now to discuss is the ceo of cybersecurity company tenable. amit, welcome. machine learning in cybersecurity is not new. what can ai do to solve this problem of perhaps open source code being contributed from questionable sources? >> i think i i, while it holds a lot of promise it's a double edged sword. on the one hand it is reasonable to expect that adversaries, that hackers will be using ai to more rapidly identify vulnerabilities, more

rapidly develop exploit code to weapon eyes and take advantage of those were abilities and conduct large-scale and highly targeted attacks against american and infrastructure, american businesses and do all sorts of bad things. the inverse of that is true too. we can use ai, as tenable has been doing, as identifying which pieces of software have vulnerable it is, how severe those phone abilities are and what can be done to help security teams understand both the vulnerabilities and how to prioritize activities that can help them reduce risk. >> want to take a step back and talk about tenable itself. you guys had results about a month ago., enterprise software seems to be hitting the stabilizing moment after a rough couple of quarters. you seem to express that in your call as well. cybersecurity is not immune from the impact of this microenvironment. what are you seeing in customer

willingness to expand their engagement with you? i know you had good things to say about tenable one and patch package that you've got, more people adopting that, where is the tension, where is the friction? >> first, we are seeing very strong demand broadly in cybersecurity. this is an issue, it is a particular concern for organizations. the sec recently issued new rulings, which require companies in the u.s. to disclose their cybersecurity risk management practices and also disclose breaches. that will cause a lot of executives, a lot of ceos, a lot of audit and risk committee is to ask questions, to pay more attention to cybersecurity. how at risk are we? how secure are we ? are we vulnerable? broadly speaking, these issues aren't going away, demand is strong. we also believe that, in the current macro, we have the opportunity to provide cost reduction and vendor consolidation. when he moved to platform based

security like tenable offers to our customers, you can help address not only traditional vulnerabilities, at access and impediments., cut cloud security, you can bring multiple disciplines of security together to provide more effective security and help customers reduce cost fees, there is news in the space, hold on for just a moment. you got an alert on chat gpt and open ai, steve kovach has a story. >> open ai just announcing a new version of chat gpt for enterprise. you can kind of think of this as a locked down version of chat gpt that people can use in their businesses, they can upload proprietary information without using that information to be viewable by chat gpt or used to train their models. you might remember over the last several months, we have had so many companies talk about how they have banned chat gpt at the workplace, that includes apple, samsung, google from banning coders from uploading code into this.

this is supposed to address that. however, they are not giving up price for this. for context, the consumer version of chat gpt is $20 resents a month. i would also note microsoft, which is a major investor, they had a version of this, their own version of this called thing for enterprise. works in a similar way, also based on chat gpt 4. john, i will send it over to you. >> steve kovach, thank you. we are seeing a flurry of software announcements having to do with ai, we are expecting to hear more from salesforce, dream force coming up later next month. expected to hear from service now as well. several others. how long does it take to secure this stuff as new product, new versions that we are talking about, chat gpt for enterprise come out? >> we see not only chat gpt but we see google and other large software companies using and distributing generative ai

technologies. it takes a while for this stuff to be secured. microsoft has had notorious problems with cloud security. recently, there was a large intrusion of government email by the chinese stealing very sensitive information based on vulnerability in well-known, well understood a soft software cloud product. i think it is also reasonable to expect some of these newer products and applications will have software and there will be new attack techniques against generative ai that we haven't seen before. i wouldn't consider this highly secure. like we have mastered it but it is an important part of how enterprises will be developing software going forward. >> i have a question about that. i imagine a scenario where someone inside the organization has a divided loyalty and is actively working on behalf of a competitor or a foreign government and is using, is querying ai to take the data out of the enterprise and

perhaps pass it along. how does your trust security work in that situation? does it understand a person is, what the queries are and therefore what the data they have acquired? it seems to me to be a little it's chris year, more difficult to understand exactly which data points have been accessed when there is ai in between pulling different data points together and delivering an answer. >> with ai, a lot of modern ai, you are seeing this abstraction layer. users don't necessarily know what data is being assessed, what data is being brought together, how the onclusions of the ai are being drawn. it does make the job of security practitioners trying to detect and ferret out a malicious insider all the more difficult, all the more complex. and, when you use terms like zero trust, i think what we are really talking about is layering in techniques, making sure that your security program doesn't provide on any one mechanism for its survival for

it to be effective. would be the user, what equipment and permissions they have. it is also what vulnerabilities exist in the environment. and, it is the combination of things, which can lead to disaster but also which can provide compensating controls and overlapping layers to minimize damage and risk, should you have a malicious insider. >> finally, you mentioned in the latest earnings call that there is been a return to the larger six-figure deals, as the area normalizes. what is a particular interest that customers have when they are doing those larger deals? is it trying to get a bigger package of software value? is it future proofing, what? >> i think it is a combination of things. it is this recognition that understanding your cyber risk, understanding your level of cybersecurity, where you have exposures and addressing those exposures practically is nice to have in his environment.

as of the sec points out in its rulings, this is a mandatory requirement. cyber risk is a critical component to business risk. you have duty of care to understand, to manage it very productively. so, we think there is growing opportunity, especially in the large enterprise market to help them understand their cyber exposure and risk and also to help them reduce cost through consolidating vendors and delivering them more. on this platform opportunity. >> lots to understand here. more every day. amit, ceo of tenable, thanks for joining us. fed chair powell's speech was front and center for investors on friday. what is the next thing that should be on investors radar ? you will get the catalyst. plus, two key consumer names and a chinese ev maker reports before the bell. we will of the story of the

trade all ahead on earnings exchange. exchange is back after this. >> this is the exchange on cnbc. was wrong was i started to notice that i couldn't do things without losing my breath. i couldn't make it through the airport, and every like 20 or 30 yards i had to sit down and get my breath. every physical exertion seemed to exhaust me. and finally, i went to the hospital where i was diagnosed with afib. when i first noticed symptoms, which kept coming and going, i should have gone to the doctor and told them what was happening. instead, i tried to let it pass. if you experience irregular heartbeat, heart racing, chest pain, shortness of breath, fatigue, or light-headedness, you should talk to your doctor. afib increases the risk of stroke about 5 times i want my experience to help others understand

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at the new york stock exchange, bob pisani with a look at the week ahead for wall street. bob. >> the markets breathed a sigh of relief after federal reserve chair powell's caucus but neutral speech a jackson hole last week. what is next for the market? even though much of the trading community will be off this week, we are about to exit this news vacuum we've been in for the past couple of weeks. this week will bring important data that will help determine if we are the below trend jobs growth jay powell is looking for. we would the jobs opening report tuesday, july pce deflator thursday, noneforeign perils on friday. so far, august as we can to be a garden-variety 5% correction. rates of it is attire to account for the strong economic reports we have seen in august and rate sensitive sectors like technology and communication services have seen a re-rating of stock-price assessment. mostly, we are still up strongly for the year, particularly in tech. the bad news is stocks are still very expensive like historic standards, particularly tech. interest rates seem like they

want to push a little higher. china is still weak. the market is still positioning for the goldilocks soft landing. that means stocks are vulnerable if the economic data continues to come in strong because the bed will keep rates higher for longer. remember, the market is positioned for this fabled soft landing. the pain train, the trade that would make the most discomfort for the most investors is for strong growth to continue into september, october. that means rates would continue to creep higher and it would mean the markets would likely be a bit lower in september. we will see. john, back to you. >> thanks, bob. stocks higher right now with major averages down for the month. the nasdaq down nearly 5%. as the market tries to regain its footing with only a few days left in august, the next guest is keeping her eye on a

few seconds in particular for any clues on where we might go from here, joining me is chief global strategist at lpl financial, quincy crosby. quincy, welcome. a week ago today, the 10 year peeked down to 4.34%. now it is under 4.3, under 4.23 at the moment. how important is that to the sectors you are tracking? >> it is extremely important for the sectors but also the overall market. this week, we have $127 billion worth of notes. the two, five, and seven. they should do well with these yields. but, it is an awful lot for the treasury market to digest. if they are having trouble with that, it could push the yields higher than we want. we'll see how the market reacts to that. that has certainly been an issue with the market. it isn't just that the better economic data is pushing yields up, it is the amount of that of the treasury has to auction off to pay bills. >> what is better mean this

month when it comes to economic data? when we are looking ahead to pce and this job's number, is it strong but not too strong? is a little weaker a little better still? >> what you would be looking for, really, is that the wages. it doesn't even matter, you know, where the number comes in. 182,000 new jobs, 210,000 new jobs. if the wages continue to climb higher, it is not going to be seen as positive for the market because, in addition to all of that, take a look at the deals that are out there in the market right now in terms of the negotiating. united auto workers, the airline pilots. united parcel service all getting higher wages. this is not something that the fed wants to see at this point because, clearly, they are going to want to raise prices across the board with the alternate consumer, whether it is retail or business. >> what should investors pay more attention to? the number that we got on friday where wages are concerned or what we can see unfolding before us with the autoworkers almost certainly going on strike, asking for

some really big numbers, 40% raise and perhaps more likely than ever to get them because, ups drivers did so well. >> exactly. and, this is a side pressure on the market. the treasury market is going to be picking up on this. wages are going higher. we will probably start to see prices climbing even more. we started to see prices paid components of the and being factoring in the iis and service center starting to inch higher. but, that is nothing compared with what could happen as the autoworkers get higher wages. the car prices are high enough, new car prices are high enough coupled with loans that are just out of reach for most americans. this is going to be, i think, dangerous for the overall economy. i don't want to sound like paul welker. keep in mind the fed and the

dogs and the hawks watching this. this is not something they want to see. >> is that effectively, you think, a floor under yields, then and a potential ceiling on equity? >> i think if you start to see the yields climb above 44, climbing higher, it isn't the fact that we are moving into a higher range, we had 70 years of just about 5% on the 10 year. it is of the quick moves, the click paste we are seeing. we went cold turkey from zero negative rates to know rates that we haven't seen in many years. and, what that means is that of those that took out loans at a lower rate suddenly are facing higher rate. so quickly. that is the issue. if the speed at which this is happening, the calculus is changing. as we go into the transition

and calculus, it is going to cause pain for private equity firms, for commercial real estate, and individuals who have taken out the variable loans on a number of products, including their homes. >> the winds are picking up economically for sure. quincy crosby, thank you. >> thank you. >> for more investment ideas, be sure to tune into a special back-to-school edition with mad money with jim cramer, the city restarts tonight and continues all week long at 6:00 p.m. eastern. now, coming up, messi many at the big apple. the company apple is putting onto head. apples streaming goal, ripple effects on the landscape ahead. the exchanges back after this. from big cities, to small towns, 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

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will connect to the exchange, i'm tyler matheson with your cnbc news update. florida governor ron desantis netted $1 million to boost security at the historically black college that was originally targeted by the white gunmen who went on a rampage in jacksonville. the governor also pledged an additional $100,000 wasn't to the jury supporting the families of the victims at the dollar general store. hawaiian electric acknowledged its role in the maui wildfire is of interest the company released a statement in response to mellette county's lawsuit, saying its powerlines fell in high wind likely causing the fire. the company added that the powerlines had been turned off six hours before the second blaze started. hawaiian electric folded firefighters who allegedly declared the fire contained and left the scene only 45 to reignite. the definitive friend predation finding american airlines more than $4 million for keeping passengers on board during long ground delays.

the department says this is the largest fine issued against an airline since around delay rules were created a decade ago. john, back to you. >> tyler, thank you. coming up, best buy, j and smucker, the numbers and narratives to know ahead of those reports, next. the exchanges back after this. >> now cnb say, cnbc trend tracker. (vo) explore the world the viking way from the quiet comfort of elegant small ships

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welcome back to the exchange. earnings season winding down. to be a big reporting. nio, best buy, trenton. during now for today's

exchange, kicking and financial ceo and a cnbc contributor, jeff, let's kick things off with nio, shares taken a hit this month, falling about 22%, despite doubling deliveries in july compared with a year prior. it will be keep an eye on a sluggish chinese economic recovery. speaking of, vision, another chinese ev start up in the headlines. xpeng will by the dd smart card for business and all dock deal. the bad news has been priced into nio. >> that's a great point, john. we are seeing nearly 20% drop in the last month. yes, it is up 11% year-to-date. it's had so much to grapple with peter reacting to lower margins due to tesla cutting prices. when you think about the ev market, 60% of it comes out of china. there is exposure here.

you can own this directly in nio or pj, the golden dragon index . i think at the end of the day, when you look at the way it's going to move higher, technically, it has support. i think it's going to get back above its average at 1135, it could go back to where it was a year ago at 16, 17, 18, 50% higher. i think a lot of the bad news is priced into nio. if you want exposure , we really had a hard time measuring. when you ask any money manager out there, they've had a difficult time measuring the reboot out of china. the zero covid-19 ramifications, this is why it is priced in, down 45% over the last year, year and a half. from a trait perspective, what also, john, from a longer-term exposure from a chinese ev market. >> while, from electric vehicles to electric gadgets coming up next, best buy shares took a hit as retailers like

footlocker reported higher inventory shrink, stole and damaged and missing goods. best buy has long had shrink prevention measures in place. it might fare better than others. also noting new replacement and innovation cycles could help drive sales. jeff, you are a buyer but with some caveats. >> there is always a caveat when you're trading with names like this. if you think best buy on a long timeline, it is driven in the train 20, when you're, 5, tenure. this is a name you an own in certain timelines for the consumers front and center here. we do see this inflation. it is coming down from where it was in june of 2022 at 9.1%. still, you are you ethinking some of the big purchases. we all love big tvs but spending has slowed down. i want to see best buy turn around. i want to buy lower. if you look at the relative strength index, i like getting a better understanding of

emotion, which can be measured in the relative strength index. it is at 26, that has oversold conditions. goes lower before turns around. it will be interesting to see what they think about the u.s. consumer from this earnings call. >> all right, jeff, finally, jm smucker. with a name like that, do the results have to be good ? the stairs also lower this month by 5% as competitors like kraft heinz reported higher prices it sales williams last quarter. back in june, inflation, supply- chain challenges and ongoing back uncertainty were going to continue to impact results, pose risk for its full year outlook. jeff, you are stating away from smucker. >> i am. this is a sticky situation, john. you look at this chart, it's ugly. i see some support at 135. if you break 135, it looks like 420 is the next stop. i would rather own something else. you look at general mills, when you talk about being a laggard that smuckers has been on a one- year, three-year, five year. it doesn't make sense that exposure this earnings season

has revealed the consumer strength. at the end today, not seeing it, it seems a little jammed up. and. >> difficult spread. >> i may put myself in probation. two data jokes in the same segment. >> and no complaints from me. from one dad to another, nicely done. lastly, members of united auto workers union voted overwhelmingly to strike during an ongoing contract negotiation. battle impact plans not just here in the u.s. but also internationally. more on that next.

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a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity. welcome back. members of the united auto workers could strike as soon as next friday. that would impact production in the u.s. nearly immediately. it could also ground reduction in mexico, a key manufacturing center for the big three.

phil lebeau joints me with how the union might use that leverage. phil. >> john, we are less than three weeks away from september 15th, which would be the first day we theoretically could see a strike by the united auto workers. there are approximately 150,000 members between general motors, ford, and still lantus. last week, they voted overwhelmingly to authorize leadership to call for a strike if there is no negotiation or an agreement on a contract by midnight on the 14th. what does that mean for production in mexico ? keep in mind, mexico plans for gm, stellantis and affordable they are not under uaw representation. however, despite that fact, as you take a look at the production, which is about 20% of north american volume overall for the big three, keep in mind that they receive key components in mexico from north of the border, from uaw shops. engines, transmissions, and, ultimately, if some of those plans are cut down because of a strike or if there is a strike

that limits no production, well, then you would see production ultimately stop or be severely limited out of mexico. the bottom line is whether it is something like the ram 1500 pickup truck, chevy silverado, the ford bronco, these vehicles would not be flowing from mexico here to united states and ultimately most leave within a matter of five or six days, you would see mexico production grind to a halt. it depends on if there is a strike and where is the strike at. is it across the entire automaker or is it only at key plans ? can you look at shares of gm, ford, stellantis, they are looking for a 40% pay raise. nobody knows if they will ultimately get a portion of that, how much of that they are going to get. they are asking for a lot. is beyond the pay raise, it goes to cost-of-living

adjustments. 32 hour workweek mother guarantees they want built into this contract. i think most people are looking at 15th and saying okay, likelihood is we are probably going to see a strike of some sort. >> these are tasks that would have seen unthinkable a decade ago. i just wonder, should a strike happen and it looks right now who looked knows how long it would be, it seems like the likelihood is the strike will happen, how big are the economic ripple effects of a potential strike here? we are talking suppliers, we are talking community impacts that are different from what you would see with ups. >> especially in the upper midwest. that is where you would see the biggest impact beauty can only immediately look at the big three. and, it is somewhere in the range of 450, 700, $770 million every week, depending on the automaker. and if they are completely shut down or if they are only hitting one automaker and the other continue their production. so, it is hard to say at this point where the impact is beyond the automakers. but, no doubt there is a huge ripple effect beyond the auto industry if there is a strike.

>> particularly for this industry. on the case as always, we appreciate it. still ahead, inter miami not the only entity winning thanks to messi. white apple could be another beneficiary of messi maniac, that's next. a platform designed to multiply output by tailoring ai to your needs. when you watsonx your business, you can build ai to help coders code faster, customer service respond quicker, and hr handle repetitive tasks in less time. let's create ai that transforms business with watsonx. ibm. let's create.

it's been a litter more than a month since lionel messi signed with inter miami and while he isboosting the sport's profile here in the u.s., messi could also mean big bucks for apple's streaming sub, which announced a ten year deal with major league soccer in february mark mahaney says streamers will become increasing lly more competitive for sports rights. how could apple's leverage with messi help its popularity? >> apple is already benefitting from the lionel messi fact after he joined inter miami mid-july, that month, web and mobile traffic to apple tv plus surged 45% globally, and 87% in the u.s. that's according to new data we just got from similar web. so far in august, through saturday, traffic is up 53% from

a year earlier within a month of messi joining the team, its owner tweeted out that subscribers to apple's mls season pass have more than doubled. it's worth noting that messi is an ambassador for the league and also for the subscription service. his deal with inter miami includes a share of mls season pass revenue jon. >> interesting mark mahaney, what does this mean for where the money for the streamers looks like it's going to go, especially given we have a strike from actors and writers, and lionel messi himself is like a hit show >> streaming platforms are going after live sports rights that's very clear. this is apple's i thirst first major exclusive live sports deal they're joining the club they're joining amazon and google youtube which had been aggressively bidding for sports rights for a couple years. the one company not in there is netflix. i think netflix is going to hit

this by shows like quarterback, trying to survive, like the 30 for 30 shows that's espn, but that kind of show rather than live sports. but yeah, given the writers strike, which is a real issue for all streaming companies, maybe there's a small relative advantage for netflix, but it's just small overall, it's a negative development they can't get this resolved it makes people with live sports more attractive to audiences through the balance of the year when there's going to be a deficit of new content launched. there's a real issue here. >> steve kovac, this is an interesting feather in apple's cap given the strategy for them has been spend less on a curated set of things. they were doing that before it became popular to just spent less >> they're trying to be what hbo used to be back in the day, high quality oscar bait, emmy bait content. when i think of sports, i also think of vision pro, now that's further out, of course, before this becomes a thing, but when i

got a demo affthat in june when they first announced it, one of the demo reels they showed me was an nba game and an mlb game. the mlb game, i was sitting there on third base. it looked like the ball was coming right at me the nba game, behind the basket. you can imagine what they're thinking about this. we heard from the nba talk about how they're already thinking of adding this stuff to the vision pro. so it's more than just let's get more subscribers for apple tv. sports could be a huge thing for this next competing platform they're trying to make happen. >> julia, amazon said to be talking to disney about espn, and the discipline on spending, i think, is a question apple seems to have kind of struck gold here or maybe struck oil with messi you couldn't see it beneath the surface until it sort of happened do you think this makes a deal like espn/amazon more likely to happen or less because it's going to be so expensive

relative to what apple managed to spend >> i think the question is whether apple might be interested in talking to espn as well of course, we have to remember that apple and disney espn have had these long-standing relationships. obviously, bob iger used to be very close with steve jobs those relationships go back a long way i do have to point out that webbush issued a note saying given the success of mls, they believe espn would be a good strategic fit for apple. we'll have to see what comes there. i would be surprised if disney espn are not talking to all the potential platform partners here that are interested in sports. one thing is for sure, jon, live sports are valuable. they found success with this apple is going to be watching very closely to see if the people who sign up for lionel messi end up sticking around to watch their other shows and whether they become longterm subscribers to the platform or whether this is more of a short-term blip. that's the key thing that may

influence how much more they want to invest in sports >> mark, apple has a lot of money, but they don't necessarily like to spend it are they going to force others to spend the money in this situation? >> i don't know if they will, but i think there's maybe a broad mega point that you have more bidders now for live sports the live sports ticket, i think, and i'm not an expert in it, but with three bigger -- bidders, that is three companies with massive cash piles and highly profitable businesses, google, amazon, and now apple, you know, it's got to be great for the people who have the sports rights and i think those tickets will go up in part because streaming does allow a broader audience. just the ability to watch these shows. i know they have to be in real time, but on any device and globally, it's easier to stream it globally. i have a feeling that's the big win, people who own the sports

rights, the sports rights holders. they have more bidders for their content from very large platforms. it means the competitive dynamics will be rising. probably content costs rising for the apples, googles, and amazons, but they can afford it. >> thanks so much. that's going to do it for the exchange icchsttsft ts aerhi quk break. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations.

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you and opportunity... ...is someone who can make the connection. at ice, we connect people to opportunity. good day, everybody. welcome to "power lunch. i'm tyler mathisen contessa brewer joining me today. commerce secretary raymondo visits china at the real estate markets take another hit >> third trip from a cabinet member to china this summer, is anything getting accomplished? we'll explore that >> plus, a hedge fund defending itself from what it calls misinformation attacks by a disgruntled employee we'll dig into