...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 allegations, but

also look at what might be an even bigger problem. that would be, contessa, its recent performance >> let's look at the markets up across the board. the nasdaq composite up 51 points or .3%. okay, 3m, a big contributor to the dow's gains after reaching a settlement on litigation related to ear plugs 3m shares up 5%. amgen, another dow stock in the news the ftc is suspending its challenge of the deal to buy horizon therapeutics it's off by a third of a percent, and horizon therapeutics up 5.5% >> the big story we're following today is gina hraimondo's visit to china secretary blinken went in june,

secretary austin in july is this parade of u.s. cabinet members china having any concrete results, or is it just a sign, i mean, maybe a positive sign that the two sides are at least continuing or maybe even beginning to talk? >> reporter: tyler, i think it depends on your definition of concrete for the first day of her meetings here in china, the commerce secretary had said that the overwhelming message that she has been receiving from the american business community is that there needs to be more channels of communication between the u.s. and china so she said that after four hours of discussion with her chinese counterpart, she was ready to announce different ways in which the u.s. and china would engage so one was a commercial issues working group. a second is an export control enforcement information exchange, which would be more of

a dialogue she said this is going to be the first held tuesday in beijing. technical discussions on protecting i.p. and trade secrets, and an agreement to meet at the secretary and ministerial level at least once a year since she's arrived, her message has largely been that the u.s. and china could continue to have a very strong trading relationship despite the tensions and despite her department's export controls, before she arrived, she had also made a point to reporters that the export controls really only impact from their assessment about 1% of trade between the u.s. and china she also told her counterpart that $700 billion of trade and stable ties are profoundly important in her words at the same time, she said to reporters today that several sticky issues did come up in those discussions. for example, the ban on some

sales for micron, a scrapped merger with intel or for intel, and chinese export curbs on two key metals for the chip industry the chinese commerce minister said that china was ready to work to foster, he said, a more favorable policy environment it's still unclear, though, as to how much leeway and compromise both sides are willing to give on some of the core policies that have really been a point of contention between the two countries. the chinese state media has been saying and complaining that the chinese concern is very, very serious about the american export curbs imposing on investment into chinese advance technology, and also what was i thought interesting about the discussions with the commerce minister, is that she directly addressed the issue for the minister to the minister saying in matters of national security,

there is no room to compromise or negotiate guys >> thank you very much, eunice let's talk a little bit about the most troubled sector of the chinese economy as we perceive it that would be real estate. evergrande, a really sort of problem child in particular there, that stock plummeting today. >> reporter: oh, absolutely. and stock plummeted at one point 87%. and this is after about a 17-month hiatus of the stock price because the company hasn't been filing its financial results. it did file its first half financial results, and they weren't very pretty. better than the year prior, but still, a loss of $4.5 billion. so a lot of trouble there. the company also had said that they were going to hold a creditor meeting today where the creditors would be able to look

at the offshore debt restructuring proposal they said -- just a couple hours before, they had decided they're going to postpone it by a month. the economy argues that it does allow the creditors to assess and evaluate the situation much more accurately, but because it was pulled so last minute, it really rattled a lot of investors given all of the nerves as it stands, as it is. >> thank you so much, eunice yoon, reporting in the middle of the night in beijing for us. we appreciate it our next guest says he's not expecting major breakthroughs to occur on the secretary's trip, but it could be more important to the chinese than janet yellen's trip earlier this summer let's bring in dennis. you make the case that secretary raymondo is not just your sort of ordinary commerce secretary but is invested with kind of

special authority and power. explain. >> that's right, tyler for years, commerce department was basically a this is american business, we want to make friends, and they even ran things like the oceans, but what they have become recently is the box in which export controls are imposed or not imposed on foreign countries. and so in the past, if you had a level of treasury and state and defense up here, commerce was down here. now, i think she has an enormous amount of power which is why i think the chinese are at least happy to have her at this point come to china. >> where do you think, dennis, they could find common ground? >> contessa, i think the chinese have very little leverage at this point over the united states they cannot -- i think the last thing eunice said a minute ago was, the commerce department will not discuss export controls

as they apply to national security and so that is really the most important thing that i think has come out here. the chinese economy as was pointed out a minute ago with evergrande and the rest, has very serious economic problems at the end of the day, the chinese have got to give something up to the u.s., because i don't think the u.s. is in a position to really offer them anything. >> so let's talk about what the secretary as reported by eunice just said, and that is that hey, let's not lose track of the fact that the export controls affect or touch really only about 1% of u.s./china trade but it's an important 1% are we, i guess my question is, are we keeping those export controls in the proper perspective vis-a-vis their size in the trade relationship? >> two things. i think in the past, we didn't take very seriously the importance of export controls,

and so a lot of the problems we have in the microchip industry that we're feeling now were there. the second thing is that those limitations on export controls are not really negotiable. >> well, we removed export controls for 27 chinese companies. that's a step in the direction that china wants >> our economy may only be 1% related to microchips. but the thing that the u.s. has decided to do under biden is to be more aggressive, contessa, in making technology the leading edge of america's economy. and i think that's why it's not a 1% issue it's much larger the chinese, as you know, have cut off people like micron, who were selling chips to them, and replace them with chinese suppliers. so i really don't see a very good way forward at this point >> let's talk about the chinese economy more generally as you assess it right now, on a

scale of 1 to 10, with 10 being very troubled and 1 being sort of not troubled at all, where would you put the chinese economy right now? >> i would give it an 8.5. >> so you see it as deeply -- and these are structural flaws or are they circumstantial flaws or a little of each? >> tyler, a third of their economy is based upon real estate you mentioned evergrande, they lost $83 billion in two years, between 2021 and 2022. they have only lost $4 billion this year, but that is a third of their economy if they don't get their economy working from the real estate standpoint, there's nothing else they can do to buffer it up. >> saying you only lost $4 billion is like saying i only threw four interceptions in this game last week, i threw six it's relatively, i guess it's a relative mark of progress, but not a particularly encouraging one. >> you know what's interesting,

in addition to the high level cabinet secretaries we have seen visiting china, we have also seeb american ceos making this trek to china. and trying to work on their relationship because they have got business at stake. some of the companies i cover closely would rely on their revenues from china. let me just ask, do you think when you're looking at the outlook and the tension that exists between these two nations, do you think that investors should be wary of where their money goes if it's being put to work in china >> contessa, i think you follow tesla. 40% of what goes into the tesla electric automobiles is from china. so yes if somebody is not already concerned about the percentage of the china involvement, they should be. i fink the i'm an investor looking at china today, i'm going to be very wary. >> dennis, thanks very much.

>> thank you coming up, 3m helping to lead the dow higher even though it's agraying to pay a $5.5 billion settlement and a check on the bond market, the ten-year yield falling to just a little more than 4.2% today, coming off the 16-year highs. up next, we'll hear from someone who says yields, stock prices can rise together. "power lunch" will be right back mlb chooses t-mobile for business for 5g solutions... ...to not only enhance the fan experience, but to advance how the game is played.

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get way more into what you're into when you stream on the xfinity 10g network. welcome back, everybody. 3m reaching a settlement in a long running litigation involving ear plugs for the military seema modi joining us with the details. hi, seema. >> largest mass tort in u.s. history involving 300,000 plaintiffs who alleged the ear plugs were defective and led to hearing loss 3m's board meeting today to discuss a settlement which amounts to $5.5 billion. wall street had estimated between $5 to $20 billion. it followed a separate settlement involving water utilities that sues 3m for contaminating public water drinking systems with toxic chemicals known as pfass final approval is spending as well as lawsuits revolving around personal injuries as to how 3m will fund the

settlements, the company is on track to spin off its health care division by the end of this year, and jpmorgan is betting 3m will receive $7 to $9 billion for this transaction following the spin-off, analysts expect 3m to lower its dividend which currently pays a nice yield of 6.1 pest. leadership is also in focus. last week, 3m's current chief financial officer added president to his title and rbc writes that this arguably positions him as the heir apparent to ceo mike roman who has been at the helm since july 2018, so roughly five years, and during that time, we have seen 3m shares about 50%. tyler and contessa >> are they talking at all about whether insurance will kick in and pay for part of the settlement >> you know, not yet, but it's a great point. i think longer term understanding how insurance could be one vehicle will come in discussion.

right now, it's looking towards that spin-off, finalizing the settlement and then looking at the spin-off of health care and the dividend in focus as well. >> only asking because then i need to follow up with the amsurance. thank you for that 3m helping the dow higher today, but the dow and the major averages are in the last few days of a down month one big reason, fears of rising interest rates traders now pricing in nearly a 20% chance the fed will hike rates again in september and concerns the fed could keep them higher for longer even though the ten-year yield is near 16-year highs our next guest says rates are not too high he says rallies can and have happened along with higher interest rates let's brin in peter anderson ranked among the top performing managers of u.s. growth equity for the second quarter of this year, returning, i'm looking now, 46% so that's notable, peter it sounds to me when i'm reading through your thesis on a lot of

this that you must be watching cnbc's coverage and reading through the financial press a lot and just yelling back at the talking heads. >> well, thanks for the candor you know, i have always marched to a different drum. the beat of a different drum, and this past year has been no different. you know, i am on record for saying there was not going to be a recession. and i still am in that camp. also rising interest rates, i have been pounding the table for that i know all of the theoretical textbooks tell you about the simple dividend discount model, rates rise, stock prices decline. but it's an oversimplification so it's a more complex problem to look at and this time, i was lucky and happened to call it the right direction for the past several years actually >> you say luck.

other people in your shoes would be very quick to claim credit. if you're a voice crying in the wilderness, then how do you see positioning your investments for the second half of this year, peter? >> well, to continue crying in that wilderness, i'm saying -- singing the same song, actually. i haven't made many changes to the portfolio. some of the disappointments, it's just incredible, i would say this past month, with nvidia, i was heartbroken that after it reported such strong, insanely good results, i went to bed that night thinking the next day was going to be one of the happiest days of my career in terms of investing because i have a large position in nvidia. and as we all know, it just kind of flopped and the market is filled with illogical reactions like that. even palo alto, remember that two weeks ago? >> yes >> these things have been

driving people crazy and i think it's just emblematic of how frightened we are about the interest rate hikes and where poor powell is and how he's trying to navigate that and saying a lot of words but not saying too much. so this is all something that you have to take in stride, and going through the rest of this year, i don't presently think i'm going to make any changes in the portfolio. >> did you just add super micro comp >> i have recently added that over the past two quarters that has been -- it's also very related to nvidia. a lot of investors are not realizing that, and it has been off the radar screen, but as nvidia goes, so does super micro computers. that's been a bit of a disappointment too for the last month. i have conviction -- oh, there's the other thing. what people said was, when nvidia didn't pop the next day,

they were quick to make the conclusion that a.i. is over that it just was a flash in the pan, and i couldn't disagree more i mean, a.i. is just beginning and it's our urge to have these immediate ramifications of news reflected in stock i think you just have to take a breather and say look, we don't get it right all the time, but over the long term, i think we should be optimistic >> a lot of people, i take your point that some people were saying a.i. is over. but there's another group who are saying that maybe nvidia has had its best, most sprightly days remember, on the prior two earnings announcements, it gapped up something like 25%, 28% each time. this time, that did not happen what does that tell you from a technical standpoint, i know that's not your necessarily your discipline, but what does that tell you about the stock's performance going forward?

can you expect it to do what it's been doing, or is this a time where it's going to be a little more flattish >> i tend to think that we are in the first inning of artificial intelligence. we might not have it right, tyler, in terms of the actual eventual solution to discovering how human thought can be replicated by machine. but until we solve that problem, the only game in town is throwing more computational power at this. i think we're just beginning to see even with nvidia's incredible numbers now, i think they will be more incredible as we go forward because there's no other solution and more and more companies are realizing that at every level, they can improve their operations certainly with manufacturing, it goes a little more subtle in terms of how a.i. can work in terms of service, i think we're just at the beginning. i would expect continued strong

numbers with nvidia. >> so you run as i recall a pretty concentrated portfolio. maybe 20-some stocks am i remembering correctly >> that's way too much for me, about 14 or 15 stocks. >> what percentage of your total portfolio is represented by nvidia now and at what point would you say that's too much? >> yes actually, i let these stocks run unless there's new factual information. i usually start with a 5% position and then let the stock run so believe it or not, nvidia became 20% of the portfolio. and even somebody as highly convicted as myself in that name realized that's just way too much risk on one name, so i reduced it to about 10%, but that's unusual for me to reduce just because of weight risk. normally, i reduce, i just sell. i either hold the position or sell, but with that situation, it was so unusual that i do feel

like i had to be a little more - >> that's really interesting of how you think and how you work, and that you're willing to let those stocks run in this case, you were so convicted -- bad term, convinced that -- we don't want to say convicted in association with peter anderson so convinced in the stock's long term prospects that you would stick with it. >> mm-hmm, that's correct. yes. absolutely and you know, i do have a physics background, abackground that i never thought would be utilized in investing, but here we are now, talking about artificial intelligence and mathematical modeling of drug discovery with a company like shu schlow ingers. all the things i thought i would forget are coming back to annoy me in a way, but it's actually favorable now in this

environment. >> peter, yeah, you never know where your training is going to come in helpful. peter anderson, as always, good to see you thank you. all week long, "mad money" will get you ready for back-to-school with a special series dedicated to jim's rules of investing and his most important market lessons professor cramer has the perfect syllabus for investors of all levels it kicks off tonight at 6:00 p.m. eastern time. don't miss it. back-to-school series all this week on "mad money." we'll be right back.

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welcome back, everybody, to "power lunch." shares of hawaiian electric rebounding today dom, this is a complicated story. >> very complicated and nuanced right now, but in many ways it's also the opposite because of the actions that have been taken so far. so what we're seeing right now is this surge that tyler mentioned. it's up just around 42% right now. at the highs of the session, it was up around 52% to 53%, shortly after the opening bell this is the electric utility tat the center of the controversy surrounding the tragic and deadly maui wildfires. well, it's fighting back against a lawsuit being brought against it by the maui county

government that suit alleges the utility company is responsible for the deadliest wildfire in america in over a century now, hawaii electric said that while power lines had been downed by high winds and likely caused a brush fire near lahaina, earlier in the day, which was later fully contained by firefighters, power to those lines in the area had then been turned off and were off for hours when a second fire broke out later on that afternoon. the cause of the fire is still under investigation by local, state, and federal authorities hawaiian electric has now told federal authorities that it has records that demonstrate no electricity was flowing through the power lines when that second fire broke out and the company's ceo said in a statement, that they believe the maui county complaint is factually and legally irresponsible. now, we should point out as you're seeing here, that despite that massive rally that we're seeing today, the shares have

lost around two-thirds of their value in the last month on that souring investment along the future liabilities tied to the wildfires. this is a very interesting development in what's now a legal situation between maui county and hawaii electric >> there have been precedents where utility companies, pacific gas, pg&e. >> absolutely. >> were found liable for fires >> one of the differences there is that they were blamed for having faulty equipment and not going in and maintaining and upgrading the equipment when and where they should have in this case, they're really saying you should have known the wind were so high that it posed a threat, and the utility in hawaii is saying, wait a minute, if we didn't keep the electric on, then the water pumps don't run, and -- which was a problem, too. >> it was also that first of all, the investigation we should point out is still ongoing the idea right now is there was a fire that was contained fully

by the firefighters and everyone else they had basically established that it had been extinguished. >> and that fire was not the one, says the firefighters, that led to the main fire that destroyed so many homes and lives. >> with that second fire started to flare up and happen, the crews at hawaii electric had told authorities that this fire was going, and at that point, hawaii electric says that they had already shut down power to all the lines in the area. and that they have proof or documentation that no power was flowing through to those lines so was it really their responsibility or was it really the cause of the fire that's still being determined by a number of regulators right now. and by the way, on the federal side, the bureau of alcohol, tobacco, and firearms is now involved as part of this investigation process. they have electrical engineers working to establish what the chain of events was and what actually caused the fire but again, this is an

interesting move in the stock only because it is a massive move higher. but it's nowhere near where it was before these wildfires broke out. so there's a tremendous amount of stress being brought on this company. and we already know what the ratings agencies have said about what the potential stress could be on their balance sheets in the future so this is a scenario where we're talking about a tragic event and the deadliest wildfire in about 100 years plus in america, but now because of the moves that have happened so far, there is no a scenario developing where the company is blaming the county because the county had already proactively blamed the company for what happened there >> we will be continuing to watch the fallout from this for months >> and hundreds of souls still unaccounted for. >> absolutely. >> dom, thank you very much. >> let's get to julia for the cnbc news update >> contessa, president biden won't spend the anniversary of

the 9/11 terror attacks in new york, virginia, or pennsylvania. instead, the white house says he will observe the anniversary at the military base in alaska with service members and their families it marks the first time a president has not attended any of the observances he will make the stop in alaska after a visit to vietnam following the g-20 summit in india. spanish prosecutors opened an investigation into the country's soccer chief for kissing a player on the lips shortly after the women' team won the world cup. she has said the kiss was not consensual meanwhile, the soccer chief's mother started a hunger strike to protest what she calls his inhumane treatment >> the official results are in, sony's gran turismo unseated barbie at the box office however, gran turismo included earnings from thursday might preshows and other preview screenings which helped it

capture the top spot >> and barbie at some point has to give up the number one spot >> yeah, it's lasted for a while. >> ahead on "power lunch," trading places opening eyes says it needs more office space uber is looking to unload some of its own square footage. could this be a real estate match made in tech heaven? we'll bring you those details when we return stick with "power lunch.

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time for today's tech check and a little intrigue in the san francisco commercial real estate market who's looking for more space and who is leasing it to them? deirdre bosa has more on this. hi, deirdre. it sounds like a realtors matchmaker paradise. >> it could be very much could be a source familiar with negotiations tells me that ai darling open ai is in talks to lease 3,000 square feet of space in the city from uber who has been quietly marketing one of four new buildings making up its mission bay campus not far from where i am in the heart of the financial district this is intriguing for a few different reasons. one, it would represent a major expansion from open ai's current headquarters, underpinning the enormous growth and funding that

chatgpt has seen this year two, it feeds into this idea of an a.i. boom rescuing san francisco from its so-called doom loop of record vacancy rates, crime and homelessness. open ai is the buzziest a.i. company out there but there are others scooping up commercial real estate in the city, like scale ai with a more than $7 billion valuation whose headquarters i visited a few weeks ago in downtown san francisco. third, there's this idea that chatgpt would be taking the space from uber, and perhaps that says something about changing sentiment in tech at large. years ago when uber was planning this huge new campus, the gig economy was humming and it was seen as one of the most attractive places for investors to find growth over the last few years, profitability has become the priority and you have seen layoffs and reduced office space. generative ai meanwhile has really taken up the mantle of growth and disruption and certainly investor dollars so guys, it needs the space now to

accommodate that mission bay, it's close to where the warriors play, too so bonus for employees they could catch a game pretty easily >> slip out and go to a ball game and see the best player in pro basketball, steph curry. let me ask you this. you said it was 3,000 square feet that would be really a cottage in nashville >> 300 -- thank you. >> oh, 300,000 >> did i say 3,000 >> that's several cottages in nashville. because i think it said 3,000. >> a million dollars >> so it's a big piece of property we're not talk - >> it's a whole building >> 3,000 square feet contessa's apartment is bigger than that. >> here's the question, what does it say -- you sort of set this up with, there's so much vacancy in san francisco the neighborhood that it's going into, does it do anything for the most problem ridden parts of san francisco? >> it's a good question. no, it's not the tenderloin, but

we have been talking about this whole idea of cerebral value, which is centered around this neighborhood kate rogers actually led it, it's called hayes valley you have seen a lot of ai companies move in there. you have seen it become an attractive place, but there's just not enough space there. so this is interesting open ai currently is in the mission, which you know, is close to some of the most problematic parts of the city. moving over to mission bay would be kind of interesting because again, it's where sort of you have seen big companies like uber build new campus. it's really come from nowhere, from the ground up it's moving away from sort of the areas that have the worst reputation, but again, it's kind of adding fuel there's other ai companies looking for space in the mission. in hayes valley, where you see some of the homelessness and crime really take root so again, if you talk to the people that are optimistic, they say this is just the start if generative ai is going to be as big as everyone thinks it is, and companies are building here

in san francisco, which certainly there's evidence of, then this could be the beginning. >> all right, deirdre, thank you very much. and 300,000 is a lot more than 3,000. appreciate it. still ahead, damage control. the investment firm tiger global claiming it's the victim of misinformation attacks saying a disgruntled former employee is to blame for a series of fltengepts about its business we'll get the latest details when "power lunch" returns

. welcome back to "power lunch. the investment firm tiger global says it's been targeting by a series of misinformation attacks and likely coming from someone with a specific agenda leslie picker joins us with the details. >> hey, tyler. this is a pretty wild story here according to tiger global, this all stems from a disgruntled former employee. it's been going on for months behind the scenes. a source sent me a nine-page single spaced anonymously written document thament alleged to be a draft for the new yorker it's not supposedly a predecessor of this pdf had been circling the rumor mill for months and this caught

fire in the hedge fund community which has been sharing it virally. it has internal strife within tiger to regulatory issues among other things tiger calls all of this, quote, a pack of lies in a letter to its investors which was obtained by cnbc and confirmed by the firm who declined to comment beyond the contents of the correspondence tiger says it's been, quote, engaged with experts to assist in responding to these malicious attacks. the letter goes on to tell them, unlike the anonymous coward spreading this false narrative on the internet, you know who we are, and we are here and ready to answer your questions now, in terms of performance, it's worth noting the firm has actually rebounded from a tough 2022 after last year's losses of about 56% in its public portfolio. a person familiar with the matter says tiger's portfolio is up about 20% through july. the firm's biggest public positions are meta, microsoft,

and apollo each of which is up more than 30% year to date the firm is essentially a microcosm of being levered to tech and growth, therefore it's susceptible to swings from monetary policy, that was the case last year with higher rates, and an ai hike this year has driven it to the upside. >> is there any indication it's done damage to tiger, this anonymous correspondence >> no indication at this point in time. aum is down relative to where they started the year in 2022, but in talking to sources, that's largely due to performance. they haven't seen as much in the way of withdrawals now, that said, this is a very reputation oriented business so when it comes to investing in certain start-ups, when it comes to generating fund-raising, which they had a first close for their venture fund, so they'll be out in the market fund-raising for more on the venture side of things it possibly could come up in these conversations. so it was important that they really send a letter out to

their lps and have that more kind of putting their foot down that this is all lies, according to the firm. and not to make too much of it >> all right, leslie, thank you very much. we appreciate it be sure to join us for the delivering afffa summit on september 28th in new york city, just a month away. visit cnbcevents.com/deliveringalpha if you can't wait that long to hear from some of the biggest names in investing, scan the qr code on your screen. we're going to leave it up there for a few seconds. i'm going to talk slowly and sign up for leslie's delivering alpha newsletter. she has a rare interview with six street's alvin waxman, you can also sign up at cnbc.com/deliveringalpha newsletter >> 3m is one of the best performers on the dow and s&p today, higher on reports it's ready to settle the ear plug lawsuits we'll show you that and other movers of the day in three-stock

owerun" lle "p lchwi bright back the us, you'll find pnc b. 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. ah, these bills are crazy. she 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.

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time for today's three stock lunch. first up, we've talk about it today, 3m up about 5% on news it

has tentatively agreed to pay $5.5 billion to resolve lawsuits regarding earplugs in the military let's get the trade on that and other names in the news. our trader today is danielle shay, simpler trading vp of options. what do you think of 3m? >> so, when you're looking at 3m, tyler, this one has been in a down trend since september of '21 when you look at it on the longer term charts you have the 200 simple that's a strong area of resistance going to come in around 110 yes, it's up today, it's looking pretty strong. the news is positive, but when you're looking at the overhead resistance, you have to keep in mind that 110 is a pretty strict line in the sand, so, you know, i think you can trade it on a it short-term basis into that zone, but i would rather short it from there because of the longer term downtrend. above 115 is where i'm wrong and we have a trend reversal in

play. >> up next we have pharma giant amgen, the ftc will pause its challenge of amgen's takeover bid of horizon therapeutics, a deal worth nearly $28 billion and the pause will give the august until september 18th to weigh a settlement case. what we're seeing right now is amgen is lower by a third of a per percent, but saw horizon up on the day. what would you do with amgen >> when you look at amgen, i long like the longer term uptrend in the stock this quarter in particular they have the nice breakaway gap post earnings when we have a breakaway gap like that i typically trade it to the upside for a week, week and a half this has traded higher nine days before it started pulling back i think it's typical what it's doing here and when you have that post-earnings pullback, you generally once to wait for nice support zones. so i think that looking at about 247 is a great area of support to start buying this, along with

the uptrend, but i will tell you, that if that breaks, your next level is going to be 238. so i think you buy this one along with the trend it's just a function of where it holds, when this pullback ends. >> let's move on to crowdstrike down about 3% today, downgrade from morgan stanley ahead of its earnings saying consensus estimates for a rebound seem high in light of a more difficult demand environment pick that one apart for us, danielle >> when you look at crowd strike this space has had a challenging time over the last year and a half i do like the stock on a long-term basis. i think that they have done really well on earnings, especially recently, even though the technicals aren't as favorable. with today and the pullback it's barely clinging on to a critical zone of support around 144 so, you know, 142, 144, it's got to hold there, and if it doesn't it's going to flush down into 131. i would like to buy more of

this i own the stock. i think, obviously, the lower the better, as long as it's holding critical support, so i would say it's good for additional buys between 131 and here, but just be cautious because we have earnings coming up and we have a market maker expected move of about $11 i think it's pretty possible it could fall down into the 131 zone, especially with the earnings report upcoming. >> danielle, thank you very much appreciate it as always. >> thank you. coming up, the s.a.l.t. shortfall. the deduction tax cap that was supposed to generate revenue actually is costing the government billions. we'll discuss that and much more when "power lunch" returns

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the right message at the right time, every time. ( ♪♪ ) constant contact. helping the small stand tall. we've got three minutes and 5 seconds left of the program. more stories you need to know about. the so-called s.a.l.t. cap is back in the spotlight as a new study says loopholes have cost the government billions of dollars. s.a.l.t. meaning state and local taxes and the deductions that used to apply to them. robert frank joins us with more. hi, robert. >> hey, tyler. that's right the $10,000 cap on state and local tax deductions is known as the s.a.l.t. cap it's supposed to raise around $100 billion in tax revenue but a new study found loopholes are costing the government about $20 billion a year in lost revenues. it's only raising about 80% of the total projection

the reason 36 states allow owners of pass through companies and partnerships to avoid the cap on their state taxes the pass through or the firm pays an elective tax, gets the full deduction, passes it on to the owner. the wealthiest business owners are available the cap while wage and property owners are footing the bill what else is new this comes to a head after congress after the election when the cap and all the provisions of the 2017 tax cuts for individuals are set to expire. do they close the loophole and keep the cap, let it expire? either way this is not raising as much as they expected. >> is the tactic sometimes described to as payments in luf taxes? is that what we're talking about here >> it's called a pass through entity, but basically, you're right, that entity pays a voluntary tax, an extra tax it wouldn't otherwise owe, and the states have allowed that to then be passed through to the owner

that's exactly right. >> and deductible in one way or another. >> that's right. >> from taxes to insurance "the wall street journal" highlight how long a number of homeowners decided to forgo home insurance altogether, instead gambling that the likelihood of a disaster isn't high enough to justify the cost of a policy what we're seeing is in a survey done by munich and the insurance information institute 12% of homeowners say no thanks, half of them, their household income is less than $40,000 they may own the home outright since they don't have a mortgage, but can't afford to pay the insurance on it and keep their fingers crossed. >> if the house was destroyed in a flood or a hurricane or something like, that they would just walk away from it. >> that's exactly right. it's shocking, but given where we are with the insurance industry and everybody is seeing their policies go up, it is problematic. >> movie theaters are going to try about anything to get people to watch a movie a small chain in britain is letting people bring their dogs

to the theater the first is strays, live action comedy with the dogs, voiced by jamie foxx, another canine, and will ferrell among others. it is distributed by universal pictures that's going to do it for this part and universal pictures -- that's going to do it for "power lunch. "closing bell" starts right now. all right. thanks so much welcome to "closing bell." i'm scott wapner live from post nine the make or break hour begins with the hunt for momentum whether the market can wrestle it back from the bears, stocks are rallying as the final stretch to august gets going there's your scorecard dow looking for rare back-to-back gains, so far so good 3m the big winner along with a nice bounce for goldman and nike, which recently ended its historic losing streak a drop in yields helping stocks broadly today. the industrials,