pnc bank. good afternoon, everybody. and welcome to "power lunch," i'm tyler mathisen along with contessa brewer. glad to have you here. today we're watching several stories at the intersection of business and politics. president biden about to speak about drug prices. the fdic plans to force banks to protect themselves. and the s.e.c. losing a court case and potentially clearing the way for a bitcoin etf.

>> seeing a market reaction here. judge ruling in if favor of gray scale. that is soaring, the cryptocurrencies are up as well. checking on the broader markets now, the dow jones industrials. we're still looking at coin base, thanks. dow industrials are up about half a percent and the s&p 500 one and a third, and the nasdaq up one and a half. let's start with the top story, president biden about to speak shortly on the first ten prescription drugs involved in price negotiations with medicare. the inflation reduction act, which was signed last year, lets medicare negotiate on prices for the first time ever. on the list are the most commonly prescribed drugs of all, including elquill, jardiance, all the companies are

here, pfizer, merck. let's get to louise chen. i'm told the drugs accounted for $54 billion of medicare part d spending. there's a lot at stake here. what's the effect if any on the prices on the stocks of the companies that manufacture these drugs? >> i think right now in the short term, none of these named drugs will have a big impact relative to what the street was thinking for these companies. the drugs that were listed were mostly ones that were debated, a couple outliers that people didn't expect. i think the impact is 2028, 2029 when part b gets rolled into,

the more expensive drugs with a more meaningful impact. >> so nornd in other words, even though the drugs are big names that we all know, looking at the board over here, in sum, you do not think that the negotiation that medicare may be able to do, subject to court cases, is going to affect, in a material way, the bottom lines of these companies? >> yeah. i think it will affect the bottom line of the companies but it's been anticipated. an example, pfizer is a company i cover. bristol and pfizer have elkwis, it's slated to go generic. another product is stelara that j&j has, but that's also to go

je if generic. for now it's an easy pass for the price negotiations but over time things will get more complicated. >> i know you're going to watch the lawsuits filed by the manufacturers against this move by the white house. what do you anticipate will be the resolution? if you had any way to predict the future on this front, do you think we'll see this actually go into effect and you'll see the impact on the drug companies themselves? >> i think the potential for it to go into effect is 50/50 at this point. a lot of questions i get from different investors on the st street is, how soon we can see a resolution. i don't anticipate that will be in the near term. i think this will go through the course for at least the next year or so. >> on what basis are the drug companies attacking this plan? in other words, the right for medicare and medicaid, i suppose, to negotiate prices? what's the legal defense here that they're using?

>> so the legal defense is -- there's different ones for different companies. the main one is the violation of the first and fifth amendment to a smaller extent the eighth amendment and also astrazeneca came out arguing it violates the orphan drug act they're all going after different angle and the bus is getting bigger with pharma companies suing the government on this. >> part of this, you rightly pointed out too where this goes into effect and then years later. but what is the redesign itself do to the impact on developing new drugs for market? >> and that is really the biggest question of the day, right. can the government and industry work together to preserve innovation? if i listen to comments they made this morning they said that innovation is key and they want to protect it. there are ways to have a win/win situation between both government and pharma where they will attack the drugs that will be most beneficial to patients.

that's my thought on it. >> i'm still a little perplexed as to how the first amendment comes into this. i thought that was freedom of speech but maybe there is a way. let me ask you a different question, and that is about whether, if this plan goes into effect and medicare and medicaid are able to negotiate the prices of drugs in their programs, will then commercial insurers who are not medicare or medicaid do the same thing? will blue cross, blue shield? will the pharmacy benefit managers be able? or will they push to negotiate? >> this is a big point of debate. it's an unknown. obviously far la would like it to be separated to medicare versus commercial payers but there is something that commercial payers may say your drug is too expensive, look what medicare said we want better discounts as well. or an opportunity for pharma to push the burden to commercial

payers. i don't think we know yet. remains to be seen. >> we're showing you the white house where we're expecting any moment to hear from president biden on his new plan to negotiate these prescription drug prices for the medicare beneficiaries. let's bring in now the former fda commissioner dr. scott gottlieb who is also a cnbc contributor. i heard you say earlier there would be unintended consequences from this plan. can you lay those out for us? >> changes in how capital is going to get allocated. this is a loath loss of exclusivity and congress expected it to be so. so small drugs come under price control after nine years, large molecule drugs after 13 years. you're already seeing shifts in investments towards those ends. unfortunately there's certain targets that can't be reached with antibodies. and i think a lot of those are

going to go undrugged. there's no benefit from what's announced today to consumers directly. there are benefits in the law, and they are quite substantial. there's a cap on out of pocket costs at $2,000. some of the savings they achieve here go towards paying that. but most is going outside the medicare program towards things like green subsidies. $286 billion over ten years projected, i don't think they'll realize all of that. but the vast majority of the money is going outside of the program. so only a lot of down side from what's happening today in terms of are we going to see fewer investments and the kinds of innovations that benefit medicare beneficiaries. i think it's hard to develop a small molecule drug for

something like alzheimer's. >> why shouldn't drugs be subject to negotiation the same way hospitals have negotiate what the fees are and doctors have to negotiate with networks what the fees are. why shouldn't drug manufacturers have to undergo that same process of capitalist haggling? p. >> in the medicare part d program they do, i was around when we created that in the early 2000s it allowed the plans to be bid to offer the lowest price benefit by extracting savings from the drug company. if you look at the real pricing in that program, the prices that don't get published. the kind of discounts offered by the major manufacturer i'm on the board of pfizer and i know the industry, sometimes they're in excess of what european companies extract. so there's a lot of discounting in the part d programming. the reason we wanted it a scheme

like that where private plans competed to extract savings we thought it was the best allocation of capital on the whole. if companies tried to offer drugs they could price at a premium they would be allocating capital on the whole to public health endeavors. you have to believe that pricing does follow some semblance of the biggest health impact. i think on the whole that's the case. good drugs get priced more. now you have the government coming in and saying we don't want a competitively bid scheme like that we're going to set the prices. it really upends the allocation of capitol now it's allocated according to government rules. if you look at the prices they set today, the way they scope the insulins which look like policy income, that's the kind of decision making you're going to get from cms, not grounded in their own stated policies that creates a lot of market

uncertainties. >> please correct me if i misunderstood you but you said the benefits to consumers as a result of this would be retiffly small, if that is what you said please say yeah, you got it right. but then my question becomes, is there a larger benefit that renowns to taxpayers as a whole, maybe not individual consumers but to taxpayers? >> right. well, i wouldn't trivialize the benefits to consumers. there's a burden for people with like cancer and capping the $20 $2,000 is significant. the vast majority of the savings are not going to pay for those benefits for consumer they're going to save the government money but it's not as if the government is taking that money and paying down the deficit or finding other constructive uses

for health care ben nits to consumers. they took that money and paid for the green subsidies. if you believe helping to offset the cost of teslas is a good use of savings extracted from the medicare program then you're in favor of this law. if they said we're taking that $286 billion that we're extracting from the drug companies and using it to offset costs of health care to families that would have been constructive and i would have been supportive of that. i think as long as the money extracted from the system stays within the system, used to help consumers get betterhealth care you can find that to be an enviable use of those sources and funds. >> i had that story earlier this year that revealed $100 billion roughly is the annual loss for medicare health waste, fraud, abuse, and very little gets spent on enforcement there. there's an opportunity, if the goal is to save taxpayers money there's an opportunity on that front to do it in that way as

well. it's always a pleasure to talk to you, dr. scott gottlieb. l ouise chen thank you for joining us. apple sends out an invite. could this be the unveiling of the 15? tesla the leading stock in the s&p 500 today, the chinese rival neo missed on earnings which could show tesla is winning market share. on the other side, paccar, which makes commercial trucks, that stock on pace for the worst day in nearly a year. down 3%. the white house, a live shot, waiting for the president any moment when he starts the remarks on the drug prices. we'll listen in.

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welcome back to "power lunch," everybody. bitcoin up rather distinctly, 7.5% or thereabouts as a court ruling may have cleared the way for a bitcoin etf. >> so crypto bulls are one step closer to the long awaited approval of a bitcoin etf, a court of appeals siding with gray scale. the s.e.c. had denied their multiple attempts to convert the $20 million bitcoin trust into an etf. also known as gbtc, up double digits today.

it was the original way to get bitcoin exposure, used to trade at a premium but now trades at a discount on fears it couldn't convert into an etf. the judge saying the initial decision was, quote, capricious and arbitrary and the commission failed to explain why it approved the listing of two future products but not grayscale's spot etf. and the regulatory treatment, as they put it, was unlawful. grayscale calling this a monumental step forward. and they say thawey're going toe pursuing next steps with the s.e.c. guys, this also, as far as the impact here, one investor i was talking to, told me the etf approval was about optics. seen as the final steps into main stream finance that would

get the largest asset managers on board as well. blackrock, fidelity, ark invest in line for a bitcoin etf. and spot etfs are considered a more efficient way to track the price. big impact there you're seeing it in bitcoin. >> kate, thank you for that. we'll go to the white house now. the president talking about the drug price adjustments. >> good afternoon, everyone. good afternoon. please have a seat. good afternoon. a roomful of leaders. thank you everyone for being here and for all the work you have done leading up to today, i want to thank, of course, our nation's champion. president biden for your leadership and commitment to lowering costs for working families in every way.

and thank you to all of the members of congress for the work you have done and continue to do to help us achieve this type of progress. so we are here today with the firm belief that in the united states of america no senior should ever have to choose between whether they are able to fill a prescription or fill their refrigerator with food. but -- [ applause ] >> yes. because we know for years far too many of our senors, millions of our seniors across the country have struggles to afford their prescriptions. and too much of our seniors risked their health as they may have delayed to refill their prescription or they cut their pills in half to try and stretch out the length of time they can take their medication.

so since we took office, president biden and i, and our administration, has taken historic action to cut the cost of prescription medication for our seniors. we capped the cost of insulin at $35 a month. [ applause ] we will cap the total cost of prescription drugs at $2,000 a year. and we have made vaccines free of charge, which will save seniors hundreds of dollars every year. [ applause ] >> yes. and we finally allowed medicare to negotiate the price of medications with big pharma companies.

to the benefit of 65 million americans at least. and as many of you know, we've worked together over the course of my career i have seen the stakes of this fight firsthand when i was attorney general of california. i met with countless families who were often quietly suffering because they or a loved one could not afford the medication they needed and were prescribed. i investigated drug makers that tried to stop the cheaper skre n generic versions of their drugs. and we held them accountable. all that to say there are many factors that drive up health care costs and make medications more expensive. and president biden and i will continue to use every tool at our disposal to bring these costs down. and we will hold accountable

those who try to put -- >> we're going to break away from this and come back as a discussion of reducing medicare prescription drug costs we're going to break away, take a quick break and come back when president biden takes the podium. we'll be right back. 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

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let's go back to the white house now and listen to president joe biden on reducing medicare prescription drug costs. [ applause ] >> please. sit down. i look around the room and this long time coming. we started doing this 25, 30 years ago. seeing if we can do something about these outrageous prices. give people a fighting chance. unless you needed the drugs yourself or knew someone who did, it wasn't as real. but boy, we've been fighting big pharma for a long time. a long, long time.

and steven, as my mother would say, god love you, son, you've been through one hell of an ordeal. your story is a familiar one of too many americans. instead of using all your energy to fight the disease, you're fighting insurance or drug companies for medicines that literally keep you alive without them, you're not going to be here. on too many nights, too many americans lay in bed staring at the ceiling, wondering what will happen if their spouse gets sick, child gets sick or something else happens to them. i should have said at the outset, as i look out in the audience, a lot of people are in this fight, some even before me. it's just amazing. i want to thank you. you the people sitting in if front of me, members of congress, the organizations you

belong to for making this happen. it wouldn't happen without you. that's not hyperbole. thank you, thank you, thank you, thank you. [ applause ] >> i'm serious. i'm deadly ernest about it. i really am. so thank you. you know, questions you lie in bed and wonder about, i remember we lived in a three bedroom split left home, we weren't poor, a lower middle class family in a development of homes in the bulk of my childhood, a split level home had four kids and a grand pop living with us. you could hear everything in the house. this is the god's truth, i remember one night. i guess i was a sophomore and junior in high school. i could hear the head board of my dad, i could tell he was

wr restless. the next day i said to my mom, what's wrong with dad? the company said they weren't going to pay insurance anymore, health insurance. that's tough enough but imagine you have life saving drugs to keep you alive. do you have enough insurance, can you afford your medical bills? do you have to sell the house to pay for everything? for all of you out there, i get it and millions of americans get it. i promise you i'll have your back and i'll never stop fighting for you on this issue. nor will kamala. nor will kamala. again i'm not being solis tow when i say, for all of you in the audience, never would have happened without you. i'm not going to start naming names because i'll get in real trouble if i do that. but thank you. two weeks ago we celebrated the first anniversary of the inflation reduction act, which

is misnamed. we did lower inflation but many other things are in that. one of the most significant laws enacted when it comes to reducing the cost of prescription drugs. we pay more for prescription drugs than any other major economy in the world. than any other major economy in the world. you can walk into a local drugstore across the country, paying two to three times more for the exact same prescription manufactured by the exact same company that it will cost you in canada, france, or anywhere else around the world. think about that. a drug company that makes a drig here in america, if it's sold in chicago you can buy it in toronto or paris cheaper than you can buy it in toronto -- i mean, in chicago. unlike other parts of the health care system. big pharma got a special carve out that stopped medicare from negotiating the price of drugs through medicare. for years advocates like many of

you in the room, have worked to change that and give medicare the power to negotiate lower prescription drug prices. just like the department of veterans affairs does right now. it matters. va pays 50% less than medicare can and negotiating the same lower prices. for years, big pharma blocked this. they kept prescription drug prices high to increase profits, extend patents on existing drugs instead of innovating. playing games with pricing so they could charge whatever they can. but this finally has enough votes by a matter of one, to beat big pharma. well, we did it. [ applause ] >> we passed the inflation

reduction act with no help from the other team. every other person on the other team in the congress voted against it, every single one. we're in a situation that the law finally gave medicare the power to negotiate lower prescription drug prices. lowering drug prices isn't just going to put more money back in the pockets of millions of americans across the country, it's also going to lower the federal deficit. [ applause ] >> according to the congressional budget office it will save the government $160 billion over the next ten years because medicare will be paying less for prescription drugs they're making available to the seniors. inflation reduction act is already making a huge difference. take insulin, it cost -- that drug cost $10 to make. the guy who invented the drug didn't patent it because he wanted it available for

everybody. but drug companies are charging 30 times that $10, more than that. now because of the inflation reduction act, seniors on medicare like steve are paying $35 a month, instead of $400. [ applause ] >> it matters. three months after the inflation reduction act went into effect, all three manufacturers lowered their prices for insulin for everyone. not just seniors but everyone. that's what i proposed originally. everyone. we lost on getting everyone but kept seniors. when we act, change happens. today i'm proud to announce that medicare has selected the first ten additional drugs for negotiation under the inflation reduction act. drugs that treat everything from heart failure, blood clots, d dia diabetes, kidney disease,

crohn's disease and so much more. medicare spends $50 billion a year on these ten drugs and american seniors are spending $3.4 billion on out of pocket costs. look, if you compare the total globe -- drug price globally, the united states is an outlier. for example, one of the selected drugs that treats blood clots costs about $80 for a monthly prescription in canada. the same exact drug in the united states, made by the same exact company costs over $270 a month made by the same company here sold in the united states of america, triple the cost just crossing the border. think about that. big pharma charges americans more than three times what they charge other countries, simply because they could. i think it's outrageous, that's why the negotiations matter.

reducing the cost of these ten additional drugs alone will help more than 9 million americans. by september 2024, hhs, health and human services, is going to publish the price they negotiated. in january of 2026, the new prices will go into effect. they're not stopping there. next year, medicare will select more drugs for negotiations. so more americans can get more savings on life-saving medications they need and deserve. but guess what, big pharma doesn't want this to happen as you might expect. last year the industry spent $400 million in lobbying fees to try to stop the inflation reduction act and block the ability of the federal government to lower drug prices. >> there what you're hearing is president biden talking a bit in detail about his plan under the inflation reduction act to lower

prescription drug prices that largely will benefit medicare but has some trickle down effect to those getting their prescription drugs and paying out of pocket expenses as well. so we'll continue to follow that here on cnbc. in the meantime regulators are going to unveil new rules for small and mid size banks with more than $100 million in seats. they're made to protect borrowers in case of more collapses like we saw in march. regional banks face another hit as regulators force them to raise debt levels. hugh and leslie join us now. leslie, let's start with you. what are the new requirements for these banks? >> basically what regulators are doing is they take this group of banks between $100 billion in

assets, the ones that are beneath those that are systematically important and enacting the same requirements and rules that the largest banks have already had to comply with. one of those is this long term debt requirement. which essentially acts as a buffer in case of failure. if a bank fails, having a long-term debt component can serve as a buffer between the bank failing and needing to be costly for depositors, both ininsured and uninsured. that's the thinking there. also redoing requirements for living wills. all of this banking lobbyists are saying could be more costly to their bottom lines. >> so hugh, when you're looking at this, one how does this debt provide the buffer and what's the impact? >> the debt, think of it as a pile of money there, it's

long-term debt so it should represent the increasing or decreasing risk that a bank needs to be rescued by the government. it would be a buffer against losses that buffer protecting the public talking about uninsured depositors who have their money at a given bank and the fdic which has their insurance fund. morgan stanley wrote a note about this yesterday. this women impact and feed into the pressures that the regional bank industry faces. they're already under the gun in terms of profits because of rising interest rates -- >> five in particular? >> five banks in particular. so they named five specific banks, regions, fifth third -- >> m&t, citizens financial and northern trust. >> their analysis was they're already below the requirement for long-term debt. they have to issue debt which should be more expensive given the downgrades to the banking

industry in general. and they have to issue that to a not friendly market so they have this pile of money in case they fail. >> this feels to me like the government requiring the banks to have effect i'vely a line of credit in case they run into trouble. this would be debt they would issue at whatever the market rate is and that debt does what? it just sits there on their balance sheet? it can't be used for anything but this kind of protection? it can't be used as long-term debt often is for capital expenses to expand branches or improve technology or whatever? it has to just sit there as a resting pile of dough in case -- in case the bank runs into trouble? >> yeah. i wish i had a resting pile of dough these days. you're right, tyler. it's there almost a rainy day fund. think of it like that. kind of speaking to the overall issuance aspect of this.

ben' mons has a note out saying an increase can drive higher yields and treasuriries. this could have the self-fulfiself- self-fulfilled prophesies you're issuing debt in a market that's not friendly to issuing debt. but then broadly speaking it could, you know, given the size of this market have an impact on, you know, where yields are just in the broader scheme of things. >> and given where interest rates are right now, any chance this puts more strain on these banks? what do you think, hugh? >> i think it's clear. you know, the regulators were forthright with this. they said this would add to their funding pressures or costs. all along with the other things we know are afflicting regional banks this adds to that pressure which will develop the next few

quarters and feeds into this narrative that the end game has to be more consolidation. if you have rates that are higher for longer and these regulatory pressures that the only way out is they consolidate. there's 4,600 banks in the country will there be that many? >> our delivering alpha summit coming up in new york city. you don't have to wait until then to get tips from the best in the business. why would you not want to do that? sign up at cnbc.com/deliveringalphanews letter. still ahead, apple's big event set to unveil big products, including the iphone 15. does that mean it'bes en 15 years? i guess it does. we'll tell you all you need to know when "power lunch" returns.

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today's "techcheck." what should we look for here, steve? >> new iphones of course what else? it's september, apple -- >> it's iphone season. >> right. >> it's like apple picking season. >> that's it. as has been the story with apple for so long, it's going to be incremental updates year over year but if you wait three or four years it feels like more of an upgrade so according to numerous reports out here, the big change coming is to the largest iphone, the max, the pro max. it's going to get a new camera technology that they call pair scope. that means it can zoom in better, that's all that means. it's an optical zoom versus digital zoom. better pictures, great. this is what everyone is going to be talking about, the change from the lightning plug, the plug they've been using at the bolt tom of the iphone for the last decade is going to change to usbc.

if you're an android user you're used to that, those are the new plugs that have been popping up everywhere now apple is going to adopt that. >> kind of a mini usb? >> yes. this is probably going to be a good thing. a lot of the reason apple is going to do this is eu put out regulations that say they have to do it. so apple has admitted they are going to do it, and it means you don't have to hunt for different chargers for different devices. >> one charger to rule them all. >> exactly. >> it was illuminating to me how much iphone has infiltrated life when i picked up a framed picture this weekend and i started to try to zoom in on it by doing this on a real print picture. what was i thinking there? how much pressure is on apple to keep innovating from companies

like google and the an troid phones and everybody else making devices? >> give you one more example. you tried to zoom in on a picture. but what happens when a baby tries to do that before they know how to talk and walk and zoom in on stuff because they've been around iphones already so much. i love iphone season as much as the next person but how important is it, that's another question? i think increasingly less. we've seen three straight quarters of sales de-cline. it's more about the user base, the installed base of more than 2 billion devices that's really keeping apple, the stock, if you're an investor on the way up. with revenue declining it's about the services, about how many people have how many devices and how much they're spending on it. so i think that it's always fun and i love to see the upgrades but it's really about how much more people are going to be using it and spending on it. >> we have to leave it there,

thank you dee and steve, appreciate it. >> coming up we'll get technical support. we asked the technician to check the chart for names worth buying here. we'll be right back. at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank. i did have hearing aids from another company... i was just frustrated... i almost gave up. with miracle ear it's all about service. they're personable... they're friendly. i'm very happy with them. we provide you with a free lifetime of aftercare. meaning free checkups, cleanings, and adjustments. i see someone new... someone happy... it's really made a difference. call miracle ear at 1-800-miracle and schedule your free, no obligation hearing evaluation today.

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welcome back to "power lunch." time for some technical support. taking a look at some of the movers of the day and if they can offer some opportunity. here to chart those names katy stockton from fair leads offer . here to chart the names, katie stockton from fair lead strategies. at&t gets an upgrade from citi, noted positive signs of stabilization in the space. what are you seeing? >> lower lows and higher highs. it creates a downtrend channel on the chart that has been in place for years now. within that context, we have an oversold indication. so i like to see these upgrades when you have an oversold condition to take advantage of. now, for me, i wouldn't want to be necessarily long-term in focus until or unless we can see at&t get through that trend line because that would then suggest that it has seen a long time bullish reversal.

for now, we trust it is poised for a short-term relief rally. >> next, bristol-myers squibb, whose drug was picked for price negotiations today. what are you seeing in the chart? >> we had a downtrend much of this year and within that context we also have a reaction from the oversold condition, helped by today's reaction and nice little move higher up to the 50-day moving average. if we were to see a breakout above that 50-day, it would target $68 for bristol-myers. you can go back to 2019 and see a long-term uptrend in place, secular uptrend within this sort of cyclical bear move. >> and did you think today that you would see any dramatic moves given the announcement of -- >> they were all largely oversold, so they were kind of primed, i think, for a positive reaction to the news. and we're seeing it on a broad basis. >> last we have digital realty, the shares higher today. the stock is up 30% year to date.

what do you read in the chart? >> this one is different. it is sort of a classic bottoming formation, the double bottom, if you will, with a breakout and that breakout acts as a positivecatalyst on the chart. so we feel that this is an interesting turn around play, it has some yield to it. and the price objectives that you can get using the tracement levels are close to 143 initially. so still impressive upside despite what we have seen already. katie stockton, thank you for coming in and drawing on our chart. >> we have a lot of stories to get to, so little time left. we'll power through as many as we can in closing time in a couple of minutes. the spread of wildfires. now's the time to see what america's largest 5g network can do for your business.

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visit jabraenhance.com. welcome back to "power lunch." let's get to kristina partsinevelos for a market flash on oracle. >> all about who you know when it comes getting your hands on coveted gpus and oracle knows nvidia. they have partnered for years in the cloud computing industry and that's why ubs is upgrading oracle. its underappreciated edge in terms of gpu capacity and infrastructure will attract more customers. most companies are rushing to build their own generative a.i. models and that means they have to scramble for the hardware. most often the hardware in gpus. ubs believes we could be sitting on a 6 to 12 month gpu shortage, which is substantial. that means any company like oracle in this case with a

stockpile is already ahead of the game or what they call a, quote, speed to deployment edge. especially since so many companies already store their data with oracle software. another reason why it is a strength. they like oracle with the 47% pop on the year to date stock price and suggest companies are only just starting to ramp up their a.i. cloud infrastructure and that leaves room for growth with oracle cloud products maybe the midas touch. >> they were smart enough to stockpile a bunch of nvidia chips. >> smart. also they have the relationship and able to get the chips in advance compared to some other companies that have been struggling to do so. >> you treat your best customer best, right? >> precisely. it is about connects and money. >> and who you know. >> and money. >> and money. >> always money. >> always money. >> money connections. >> money. >> thank you, kristina. >> thank you. a few minutes left in the show and a bunch more stories you'll want to know. farmers insurance laying off 11% of its workforce, about 2400 employees, it says the cuts are

across all areas of its business and part of a restructure for long-term growth. now, farmers also recently announced it will stop offering policies in the state of florida as a way to better manage risk exposure. california, i think, is the state that -- >> what happens to the great ads they do with jake -- >> like, we are farmers. ♪ >> which we can all sing. the insurers are under a lot of pressure because of inflation and they have to manage the risk well and we know that we're watching this storm idalia come barreling up the west coast of florida right now. in florida, the insurance market has been such a mess for so long and, yes, this year the state legislature passed a law and the governor signed it to try to deal with some of that. they just had some new insurers coming back into the state to try again. california is a mess. texas is troubled. louisiana has a problematic insurance market. and the insurers have to

position themselves in a way that keeps their risk manageable. >> moderated, yes. >> and it does, as you pointed out before, it often rolls to the reinsurers who have to pay -- >> and the reinsurers are making money hand over fist. they can set the prices at whatever they want and don't have to take the risk if they don't want it and so they aren't. that's caused a lot of impact as well. >> as our economy struggles with labor gaps, immigrant workers are coming to the rescue. immigrants will account for half a million jobs filled in the u.s. over the next three quarters. and between january of 2020 and january of 2023, the immigrant workforce grew by 9.5%, compared to 1.5% among native born americans. this has been part of the american story for centuries, people coming from outside of the country, into the country, creating economic value for themselves and their families and this is part of the american way. >> and apparently the visas have

been given out more. there is a demand here and the companies are asking the government to speed up the rate at which -- >> this is a separate issue from the immigration that is coming across the border, the undocumented people. >> yes. absolutely. right. another segment helping to fill in labor gaps, working mothers, according to the labor department, mothers had a 75% workforce participation rate as of july. that's more than at any time since the labor department began tracking that data back in 1948. we believe that the pandemic really disrupted some of that, that people were needed at home, and somebody had to oversee children at home doing the schooling at home and so it disrupted mothers in the workplace. >> participation rate among mothers went down a lot during the pandemic. and has come back now to record highs. and probably in part because of work from home arrangements that have been made. >> and the cost of living crisis, what groceries and fuel

costs mean that you need more money at home. >> and finally, at what age do people make their best financial decisions? the age is 53 or 54 according to a new survey. that's the age when you accumulated enough knowledge and experience about financial matters but before losing any key analytical and cognitive skills. i'm past my sell by date. >> i have something to look forward to. >> keeps getting worse and worse and worse. thank you for watching "power lunch.." welcome to "closing bell." i'm scott wapner at the new york stock exchange. this make or break hour begins with the markets new found momentum and two big questions about it. is it real and can it last? it comes with stocks on the rise again, just as a tough month about to end. here is your score card with 60 minutes to go in regulation. green across the board. good gains too. the dow getting a big boost today from the likes of verizon and intel, goldman sachs as well. apple