♪ welcome, everybody, to "pour l power lunch." with contessa brewer, i'm tyler madsen. glad you could join us. something the markets will be continuing to watch, earnings good enough. will tomorrow's jobs report be just right to keep the rally going? move over, barbenheimer. at taylor swift movie coming ou in october as a concert flick. friday the 13th, the same day as the new "exorcist." be exor-swift will another jolt for the box office? >> the mashup is happening with the movies, not just couples now. let's get a check on the

markets. dow industrials in the red now, off by a tenth of a percent. s&p 100 up a tenth of a per cen. the eighth up day for the nasdaq. salesforce keeping the dow from being down more. estimates raise guidance going forward. it also says it is meeting targets for the profit margin improvement ahead of schedule, up 3.5%. the cybersecurity stocks on the move today. you have okta and crowdstrike jumping following their reports after the bell last night. okta now up 14%, and crowdstrike up 8.5%. tyler? we begin wtd mith the marke. nasdaq red hot as summer wiends down. nasdaq, in particular, still up 33% this year and on track for its best performance year-to-date since 2003. will this rally that has taken hold in the past ten days or so

continue? let's bring in michael lansburgh of lansburgh bennet private wealth management. good to have you with us. august began in a soggy way. with all due respect to florida, south carolina and georgia where they're digging out from the sogginess, it is ending on a pretty positive upswing. what does that telltyler, in na earnings are really good. we went from an environment where it was 13% negative, year-over-year earnings in the fourth quarter, the first quarter was negative 8. now, it is a positive 12%. they are seeing earnings -- obviously, multiples expanded. the tech earnings have been good. whereas, the s&p earnings have gone the other way. we're seeing a deceleration. that's kind of where the action is, is in tech. not, obviously, just the big seven names. earnings are really driving some of this a, as well as. >> you think it is time to rebalance portfolios.

how do they do that? >> part of it is the fact that, you know, those magnificent seven are up, on average, 99% in the first eight months of the year. you probably can't chase them here. i think you have to be realistic about where you are from a timeframe standpoint. we like the other names out there that haven't moved that are having earnings growth. the s&p doesn't have any earnings growth. very hard to find. when you do find it, i think those are some good opportunities to look there. rebal rebalance away from some that moved so much, into other names that have been a little slower, as well as look out of the country. >> you're suggesting united health care, mcdonald's, diageo, lockheed martin as some of the choices right now. do you think the volatility we've seen in august continues into september? >> i think you do. i think, obviously, with the inflation numbers being a little hotter, and that was a july number we saw today, i think in august, that i a little hotter. the fed moves again in august, i

think, in september. august historically is a pretty volatile month to begin with. a lot of people on wall street are working, so the volumes are down. part of it is taking some money, slight profits allocating to ot that haven't had stock moves as much as the big tech names. >> what do i do with the big tech names, trim there? >> yeah. for example, a name like nvidia, up over 200 some odd percent, we love nvidia long term and have had it long term. when it goes from 4% of a portfolio to 9% in eight months, probably makes sense to take a little off the table. we still think it's, obviously, the best place to be for a.i., but a.i. is not going to be a straight line up. i think you've got opportunities to be able to trim, add to other things. you know, we're in the risk management business, and we want to make sure clients can experience the whole run. people forget, it was only last year where all these magnificent seven were down 40%, 50%, 60% in a year.

you can have those tractions. you want to be rebalancing to some other parts of the u.s., as well as some other parts out of the country. >> innvidia went from penthouseo outhouse and back to penthouse. you think the fed will raise rates in september. why do you think it'll be a live meeting with a quarter rate hike? >> we've heard, don't fight the fed. but it seems everyone wants to fight them on the way up, not when they're cutting rates. we had a bump in pce. inflation is not 2%, it is bumped up. we think it continues to go higher. i don't see there's a reason to not take him at his word that he raises. we have in our models one to two more before the end of the year. maybe i'm wrong, it's not september, maybe it's december. but i believe you get one in september. given where we are with inflation being a little hotter than expected. what they like to see pce wise isn't heading toward 2%, it is heading back the other way.

again, i think you're going to see that with energy prices continuing to move high e as w well. consumers are feeling it. >> you don't fight the fed if you look internationally, you say. >> absolutely. we look at, you know, businesses who are -- countries from the top-down and say, who is growing their companies, and whose federal or central banks are raising rates to stifle that? japan, for example, has been a large play for us all year. india, as well. getting great gdp growth and you don't have the central bank raising rates to kind of kill that growth. we think that's an opportunity. specifically in japan, we've actually liked the play where we're short the yen, you know, long japanese stocks, etfs that do that. they're actually doing quite well. in fact, almost nasdaq like with a lot less volatility and more diversification. >> good to talk to you today, michael. thank you for the advice. >> thank you. markets climbing several hurdles during the mini rally. tomorrow, the august jobs

report. for more on the economy and the bond market reaction, let's get to rick santelli in chicago. hello, rick. >> reporter: hi, contessa, and thank you. i might welcome a special guest on today's important day today, and tomorrow, of course, jobs report. managing director of pimco, jerome schneider. welcome. >> thank you. >> i'm going to look at the data. i disagree with the conventional wisdom out there. all i hear all day is, year-over-year of core pce at 4.2% was in line. it might have been in line, but it was 0.1 hotter, and the entire year habis been above 4.. half of last year was above 5%. we haven't been below 4% since september of 2021. do you think inline is important, or is that awfully sticky looking? >> it's a little sticky looking. in fact, i think we have to caution investors from looking at too much of the minutiae of any one data point, whether it is today's figures with spending

and income or tomorrow's figures with jobs. the reality is, that the notion of what is inflation is a complex notion. we have the fed themselves looking at several indicators, favored by the pce indicator. the one today is pushed to be a more subdued level due to price indications, coming off the peak point we've seen over the past few years. the goods pricing, services pricing, those are all moving her and creating a more euphoric marketplace for risk assets. in reality, it is a longer term equation with more complex variables, specifically the -- >> when we think of the fed longer term -- when we think about the fed, how manyuch time they have? you're not getting this under 3.5% next year either. do you think? year-over-year -- >> one of the things you have to -- one of the things you have to focus on is that the fed is perhaps more data dependent. what they've explicitly stated in the jackson hole mission was inflation was going to remain a

focus, which means perhaps in the near term, the next three months, maybe longer, there's going to be less data dependent. the conquest of inflation is a longer term, frankly, prognostication at this point in time, where you do have some upside propensity for wage pressures to come into the equation as we enter into 2024. that's going to be the outlook as we look at average hourly earnings tomorrow, employment cost indexes, other factors that come into play, despite robust economy with growth and growth outlook, specifically in the third quarter now. >> what about the savings rate today, jerome? savings rate moved from 4.3% in june to 3.5% in july. that's the lowest savings rate since october of 2022. is that the nest egg we see that's been giving some investors and some consumers a little extra horsepower? what do you think about that drop? is it something to be concerned about? >> it's absolutely something to be focused on, not concerned about at this point in time. it has been the basis of resiliency and risk assets and

the market in general. the decrease in income was obviously noteworthy today. on the flip side, you had the increase in spending, which obviously brings the saving rate down to 3.5% or so. more specifically, though, what it also highlights is nest egg, that savings sitting on the sidelines, on the private sector balance sheet for consumers, hast been quite robust. in the outlook, which we're conservative at pimco right now, we have to be mindful of the fact the private balance sheet, the consumer, is in a healthier spot than we've seen in other parts of the economy where we'll be conservative. it's the public balance sheets that are in focus now. >> there's many stories today about a pivoted pimco, starting to look at mortgages. one thing i've looked at, if you look at the credit default swaps on investment grade credits, okay, they are at the cheepest levels in 18 months. year-to-date on investment grade and high yield spreads, they've come in, making mortgages look

cheap by comparison. everyone seems to be jumping into the mortgage arena. is this the dynamic we should be worried about? thekshrinking and high yield, it's playing on treasury rates that are higher a few years ago. >> it's a key point. investors shouldn't be focus on the spreads being tight but the economic outlook which remains more conservative. pimco, we're thinking there is a possibility of a recession, not a high probability but a possibility. when you have that environment, you want to be more conservative with how you're allocating corporate credit. we think agency mortgages are a high quality diversifier to that, that allows you to basically be in the higher income world of the fixed income universe at a lower volatility point that complements your ability to earn a diversified sources of income. we don't disagree with the fact that corporate bond spreads and allocation of corporate bonds is an underweight at this point in time, as it has been the fast few quarters, predicated on a

conservative outlook for the economy. >> we have to leave it there, jerome. >> et cetera. >> with tomorrow's data points, we want to pay close attention all the wayge components, and o the corporatefaults are up and investor demand is also up. strange brew. thank you for joining me. tyler, back to you. >> thank you, rick, jerome schneider, appreciate your time. let's bring in courtney reagan from market flash. >> yeah, dollar general is suffering the worst day since june 1st but the worst day since august of 2016, and the second worst monthly performance since its ipo in 2009. the discounter put up a disappointing quarter with unexpected comparable sales drop, lower traffic for the third straight quarter, a huge profit miss and a slashed outlook. dollar general calling softer sales trends and shrink for the balance of the year. some is theft and some damaged goods.

dollar general executives point to continued pressure on the low-income consumer, the core shopper, buyer fewer items, relying on the $1 price point they have. buyer closer to paychecks, too. jpmorgan downgrading shares to neutral, citing head winds that are more than macro pressures. they think it is an operational issue, execution by the company. certainly, there are others that are able to do well in this low-income environment when they offer low prices. >> how is that a depar whture f walmart? >> it is almost opposite of what we saw in 2008/2009. walmart was losing share to dollar stores. if you might remember that, consumers were going to dollar stores for these, like, fill-in trips. gas prices were high. also buying close to paycheck. walmart was losing out. this time, walmart seems to be taking share from the dollar stores. >> interesting. >> yeah. >> court, thank you very much. coming up, the next retail earnings on the horizon, lululemon after the bell. the stock has been anything but a downward dog this year, up

nearly 20%. that is coming up. as we head to break, a quick power check. western digital leading the s&p 500, hitting a new 52-week high, losing power today is ch robinson, calling to a downgrade of negative. a price target of $77 a share. it's above $90 rhtig now. "power lunch" will be right back. . ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done.

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delivering alpha is four weeks away, but you don't have to wait to get insights from the biggest names in investing. leslie picker joining us with "delivering alpha," her newsletter. >> appropriately named, right? >> what a concept. >> today's newsletter features alex waxman, co-founder of sixth street. it's a huge player in the direct lending space. m waxman spoke of the explosive growth it's seen recently. >> the die nynamic right now, t evolution changing from what was predominantly all banking activity, now more private market activity, that is a megatheme that is hitting across all asset classes, from corporate -- the way corporates are financed, small-medium -- >> public corporates? >> public/pripublic/private, re infrastructure. the plumbing of the sis ystem a how it's financed is evolving in an accelerated way. >> all the capital that's gone into the direct lending space,

the private credit space, some criticized that as being the potential for a bubble. is that what you see given your perspective on the space and your view of competitors, as well as your own book? >> it might be a bubble, but it doesn't pose systemic risk. that's the important point. a lot of -- at least the way sixth street does it, our cap capital, it's long dated so we can match assets and liabilities. it's highly flexible. >> waxman says private credit distributes risk through institutional investors with longer dated, opposed to short-term. >> how did they do last year? >> we don't have the performance figures right now, but i know their aum has grown tremendously. they're over $74 billion in assets. they span all sorts of high growth areas. you have growth itself, direct lending, which has been a key

area for all ternative investor as well as infrastructure, real estate. they have agriculture. they're born out of a goldman sachs form of alums who put together this firm. it was initially associated with tpg. to do kind of special situations work. recently, spun out, and now they're involved in all these high-growth areas. >> when you asked about the bubble, he seemed to be, you know, tap dancing, walking on a tight rope a little bit, to say, well, we don't do it. could it be a bubble? yeah, but it is not systemic. who is not going to say that? did you get a sense from him that there's any concern about all of this being overinflated? >> i think i didn't get a sense outside of what you saw in the clip right there, but i think his point about it not being systemic is basically a note to regulators. saying, if it is not systemic, you don't need to regulate this further, which would be, you know, kind of that next derivative of, if it were a bubble that popped, regulators would say, we should have been more involved here. by saying it is not systemic, and his rational is, basically, you wouldn't need a

taxpayer-funded bailout if this welcome back to implode, in the way you would if a bank were to fail. he's saying all these regulations we see in the traditional banking space right now don't need to come into the private credit space because we have a different distributed risk profile. our clients are institutional investors are longer data horizons. if something were to happen, you know, it wouldn't kind of ripple, have a ripple effect into the rest of the economy. >> at least not immediately. >> i mean, we don't know, right? we've never seen this before. private credit in kind of this size and scale. >> yeah. >> it is a new thing. it's a new phenomenon. we're seeing -- >> not all in the banking system anymore. >> it is not syndicator. yes, it is with institutional investors largely, with the private credit side of things, but, you know, institutional investors are pension funds and endowments and non-profits. you know, other areas of the economy. it's not just wealthy individuals that are exposed here. >> leslie, thank you. all right. be sure to subscribe to leslie's

delivering alpha newsletter. it is chock-full, chock-full of investing insights from the biggest names in business. scan the qr code on the screen or cnbc.com/delivering alpha newsletter. as maui recovers from the wildfires in lahaina, the question resonates, how do we prevent another tragedy like that? some companies are working on what could be a solution. jay wells is out on the west coast following this for us. hello, jane. >> reporter: hi, contessa. yeah, the red flag warnings in hawaii again today, up in northern california here, we have some major wildfires. isn't there something better than the siren which doesn't tell you anything? yes. when "power lunch" comes back. the people who live and work there. because you call these communities home, and we do too. pnc bank. icy hot. ice works fast.

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welcome back to "power lunch." hawaii's devastating lahaina wildfire developed the need for a better warning system, especially because the fires are becoming more intense and popping up in places they never did before. jane wells is in laguna beach, california. jane, you're looking at new technologies being tested now, right? >> reporter: yeah, i mean, look at this canyon. people in this luxury coastal town are very familiar with how devastating a fire can be.

now, like maui, here in laguna beach, they have these speakers. authorities in maui reportedly didn't turn on the sirens during the lahaina fire because they were afraid people would think there was a tsunami and people would run away from the ocean and into the flames. instead of a siren, what if speakers could speak? >> attention, this is a test of the laguna beach outdoor warning system. >> reporter: laguna beach has invested $1.3 million in a cloud-based alert system by a company called genesis, which includes 24 speaker locations around town. system combines spoken messages with text alerts. they use the system twice last year to order evacuations during fires like this one, and speakers operate off satellite if the power goes out. >> while we have patrol vehicles and pd officers trying to do door-to-door knocks and drive through, it is another way for us to just yell in their

backwards and say, "hey, pay attention. something is going on." >> reporter: hawaii does not have a system wlike this. could it have made a difference? many communities in california are using it now. it's been installed in places like fenway park, automobile plants, and all over japan, which became a customer after the fukushima disaster. >> using sirens that we were using in 1940, in 2023, is a -- it's just insane. >> reporter: now, genasys says revenues will double to $100 million in two years. the installations, ballpark figure, $50,000 to $100,000 each. what sets it apart, says the ceo is not just the voice but the clarity, guys. >> yeah, i mean, that makes sense to me. but we should mention genasys is a publicly traded company but has a small market cap, $120 million. i'm curious, when you were looking at this and starting to scout around, what did they say? what have you learned about why

the alerts that we get on our phones about amber alerts or, you know, weather warnings, we all carry these around. like, how come we're not using the phones? why are we even relying on physical speakers? >> reporter: well, you need a system of everything until it goes out, contessa. i mean, you need the amber alerts until you can't get cell service. you need police and firefighters driving around, knocking on doors until they have to get out of there. and you need speakers as long as they will last, until they burn out. the good thing about this particular system is it is hardened against power outages, with some using solar power, some satellite power. it is just one more thing when everything goes bad, you have another tool. >> jane, thank you so much for the story. really appreciate that. all right. oil prices are rising ahead of the labor day holiday weekend. pippa stevens here with the details. >> just now turning positive for

the month of august. now, all eyes are on whether saudi arabia extends the voluntary cut into october, and there is expectations they'll make an announcement next week. earlier today, russia's deputy prime minister, novak, reportedly said opec reached an agreement. the cuts are working. saudi arabia's exports this month are at the lowest in two years. another thing underpinning the market here is strong demand on the product side. that's things like gasoline, diesel and jet fuel. it is on a seasonal basis, above the pre-covid levels. we have a chart showing the 3-2-1 crack spray, how refiners measure margins. while it is down from the off the charts levels of the last two years, it is still very he healthy perspective. the $40 level is awesome . at points in history rs it's been negative. the demand is driving oil prices here. if refiners are getting that large of a spread, they're going

to keep buying. that drives up the price of oil. >> we're seeing higher gas prices, too, up 6.7% since memorial day. normally, you'd see them declining more than 3% in the summer. that's factoring into speculation about where the consumer is going to pull back, as well. pippa, thank you. let's get to courtney reagan for the cnbc news update. hey, court. >> hi, contessa. former president donald trump's legal team filed a motion to sever his case from 18 co-defendants in the georgia election case who are asking for a speedy trial. the court filing came hours after he waived his arraignment and pleaded not guilty in the case. it also came on the day georgia governor kemp dismissed calls for a special legislative session to remove the d.a. who brought the charges against trump. the biden administration proposed a new rule today to eliminate the so-called gun show loophole, essentially requiring anyone bwho deals in firearms fr profit to get a federal license and conduct criminal background checks, regardless of where they sell firearms. it is one of the biggest attempts to regulate the sale of

guns in the u.s. in years and likely to be challenged in court. harley-davidson is recalling more than 65,000 motorcycles because they could be more likely to crash. according to federal highway safety regulators, some models of the soft-tail moistures have an issue with the shock absorber that could damage the back tire and make it lose 3pressure. harley will replace the part for free. back to you. >> thank you. ahead on "power lunch," lululemon's winning streak. the athleisure giant will try for another earnings beat reporting after the bell today. can it keep up in the momentum in the ultra competitive apparel market? we'll discuss that on the other side of this quick break.

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welcome back to "power lunch." broadcom reports after the bell this afternoon. christina joins us with what to expect. >> hi, tyler. broadcom is the last chip maker to report this earnings season. after we saw a muted stock reaction to nvidia and parvel last week, there's worry about how high the earnings bar is set.

fortunately for broadcom, ownership is higher on the buy side when compared with marvel technologies, for example, given its lowered forward price to earnings valuations, 21 times versus 34 times, and the larger revenue contribution from artificial intelintelligence. how so? it makes silicone used in a.i. infrastructure, so it has tangible exposure that goes just beyond the processors made by nvidia. another positive for broadcom is it is usually a little less cyclical than other chip names. five of the last six quarters, all of its various semiconductor business segments grew year-over-year. investors will want to know or hear more of broadcom's acquisition of cloud computing software provider. vm ware. seems like it is going in the positive direction. overall, though, broadcom is seen as an actual a.i. play, aside from nvidia, and if it closes in the green today, that'll be ten months of

positive gains out of the last 11 months. not too shabby, given the cyclicality of semiconductors and the fact it is not nvidia. shares are up 3%. >> thank you for that. lululemon on deck to report after the bell today, and wall street expected to see some earnings growth there. the athletics apparel maker has had a nice run of beats. it beat 11 consecutive quarters. the question is, can it do it again? our next guest thinks lulu's metrics are peak, expectations are very high, but the risks are growing of a slowing consumer. he has an underperform rating on lulu and $250 price target. let's bring in the retail analyst with jeffreys. hey, randy, boogood to see you today. give me a sense of what you think the challenges are for lulu to come in and beat again. >> look, i actually think lululemon is going to beat the quarter. i think everyone thinks they're going to beat the quarter. the question is going to be, where do we go from here? what's next?

what's the next couple years? i think what the market doesn't really think about is the category that lululemon plays in, which is basically apparel. apparel is very competitive. we were talking about maybe on this program, eight years ago, about under armour being the best in class darling of the athletic apparel space. our concern about lululemon is that the category of athletic apparel is, you know, much smaller than athletic sneakers, for example, and we actually prefer nike. nike is in a duopoly with adidas. we think lulu is going to run into a wall where the growth slows and expectations are getting too, too high. >> you're seeing it there on the screen right now. looking for signals that the belt bag catalyst is waning. literally, i said upstairs with some of my younger colleagues, i said, wait, belt bag? is that a fanny pack? it is a fanny pack.

>> oh. >> it's back in style. so much so, even the 10-year-olds, randy, are giving -- getting it as a birthday gift. 10-year-old boys. they call it a satchel, not a belt bag, but whatever. why is a specific item like that so important to a retail brand the size of lulu? >> yeah, satchel, we've seen the movie "hangover," so we understand. it is a belt bag, is what they call it. you know, i think the issue here is this -- belt bag is basically a fad. we've seen these fads come and go. the actual contribution to revenue for the belt bag to lululemon's revenues is not that high. what happened in the year 2022, starting around this time, the belt bag craze got so severe or so hot that it caused extra amounts or excessive amounts of extra traffic and transactions to occur in the company's floor and on the website.

you pointed it out, people are giving these gifts to 10-year-olds. if you remember, about 20 years ago, coach ran into a problem where they were expanding their assortment to younger audiences, a teenager, if you will. it started to alienate the core customer, the mom of that teenager. what lululemon does with this belt bag attracting the 10-year-old is it could alienate the core consumer and have them go to other brands, like a brand we're seeing in the marketplace really grow right now is biori. competition is always around the corner, that is something we want to watch and monitor for lululemon going forward. >> very good. i have several of their garments i bought online. the one thing i would challenge you on is the idea that lululemon, for many, many years now, has been able, in a way, not to reinvent themselves, but to stay fresh. when you go into a lululemon store, chances are, it's going

to be might be aybe the second most crowded store in the mall after the apple store. >> look, i don't disagree. the company has done a great job of keeping things fresh. but at the end of the day, they're also starting to reach into other product categories to extend that growth. case in point is the footwear offering. it hasn't done well for the company and it might show the company's strategy is getting a little kind of, you know, going in the wrong direction. that's our concern going forward. it's a lot of the easy growth has been had here, and the growth ahead will be tougher to come by. >> how important is china to lulu's growth? >> china is a great story for the company, i'll admit that, and they've been doing a great job there. but when you think of the contribution of china to the overall fundamental thats, fund than 20% on the business. it'll point to china as a growth

story going forward, and they're not wrong in that. however, the way this stock will trade going forward is really what happens in the united states market. that's where they've done, you know, an excessively, much better job than the balance of the retailers out there in the u.s. ie, you know, metrics are at peak levels here. what we think is going to happen from a stock trading perspective is the market is going to focus on what happens in the united states, irrespective of the nice growth in china. that's what is going to matter to the story of the stock as we go into 2024. again, we think those risks for the u.s. market are now rising. >> all right. randy, thank you very much.koni time. >> thanks, guys. coming up, following the money. billions in federal funding from the inflation reduction act trickling into the economy. will it be enough to move the needle with voters come election time? luh"th wn ow athe"per nc continues. (ping) ( ♪ ♪ )

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welcome back, everybody. a ford battery plant is heading to the city of marshall, michigan, thanks in part from funding from the inflation reduction act. while the plant is expected to bring tens of thousands of jobs in economic activity to the region, not everyone seems to be happy about its arrival.

emily wilkins is live on the ground there following the money trail for us. hi, emily. >> reporter: hi, tyler. well, when biden signed the law incentivizing electric vehicle battery producers here in the u.s., he anticipated it would lead to developments like ford deciding to build a $3.5 billion electric vehicle battery plant here in marshall, michigan. under the law, ford can receive tax credits for batteries and evs, and that helped ford decide to build here in the u.s. rather than building abroad. s an iconic restaurant that has been serving the community more than 100 years, sue said the factory and the jobs it brings will give businesses like hers a boost. >> we are excited about the opportunity for there to be the jobs that will be coming back to our community. one of the things that we look at here in the restaurant is that when people come to the jobs that are being created, those people will have families.

there will be spouses and children that will come to the area because of those jobs. >> reporter: the excitement has been mixed with concerns about the factory's impact on the environment and that ford is collaborating with the chinese battery company to help create the batteries. ford has received more than $1 billion in subsidies and tax breaks from the state. the facility won't be done until 2026, and some residents tell me they'll have to wait then to see what the ultimate impact on marshall will be. that could complicate things for biden who is running on the impacts of the law. back to you guys. >> so the objections to the plant, and we just saw several billboards indicating there are people who object to it, are what, environmental, or the fact it's going to overwhelm the small town with traffic? what? >> reporter: i mean, it is a number of things. i mean, the folks in marshall, this is a small community in a rural area. a lot of folks really do not

want that to change. they moved here to kind of get that country lifestyle. they don't want to have the big factory in their backyard. and i have heard from a number of folks who continually bring up that ford is partnering with this chinese company. ford, of course, will own the plant and will be the only one to get the subsidies of the tax breaks, but just the word "china" has brought some concern to this community for what this factory is ultimately going to look like. ford has been trying to address environmental concerns, explain better about what it is doing. for a lot of residents here, i mean, all they're seeing right now is an empty field with a lot of construction going on. it is going to take a while for the jobs and the economic benefit to really materialize. >> great reporting, emily. thank you for that. appreciate it. next, customers, the trade on salesforce, campbell soup and a fresh three-stop lunch with cummins. "power lunch" will be back.

all right. the ftc has secured a settlement with intercontinental exchange incorporated over anti-trust concerns regarding its acquisition of black knight. the proposed order settles the

commission's claims the deal would drive up cost, reduce innovation and limit choice in the mortgage technology area. under the terms of the deal, black knight will divest and empower optimal blue to constellation web solutions, another provider of mortgage-related software tools. let's get to software tools let's get to today's three stock lunch. we have salesforce shares up higher today, 6% for the week after reporting strong second quarter earnings, goldman sachs raising its price today, its target implying outside of more than 50%. here with our trades is victoria green, g squared private wealth cio and a cnbc contributor. salesforce, are you a buyer, seller or a holder? >> i'm going to be a buyer here. if you look at the option markets, you had a lot of o'activity in those 230 september calls, which means a lots of investors are seeing there's more blue sky ahead. their margins were great, and there was a story about them being able to expand the margins, raising their forecast

to keep 30% plus margins and then the thought that maybe this enterprise i.t. slowdown that they've been experiencing may be bottoming out, and we can see growth. and of course they announced some ai-driven product enhancements that will come out. and they gave san francisco a shoutout. >> let's talk about campbell's soup going the opposite way. shares popped initially afternoon reporting results matching profit expectations, topping sales estimates because of easing costs and steady demand for snacks. what do you think of campbell's soup? >> it's a buy here, full disclosure, hands down gold fish crackers are are my favorite snack. i might be a little biased here. it's something to like. it's all about the snack story. snacks having growing as a percentage of revenue and now produces more than 50% of their sales, and then they just announced an acquisition with a

great complement to the preg goe brand. i see a lot of upside. it's a 14 time p/e 3.5 dividend quality staple trading pretty cheap right now. we think there's upside as we continue to see demand in the snack sector, we think it's going to continue to grow those sales and that's where the growth engine for this company. >> you see how everyone's favorites plays into what we cover here on cnbc, right? how about cummins, the ceo says she sees the company continuing to be a big player in china despite the slowing economy. we see the stock down 5% this year. is china enough of a momentum fueler for you, victoria? >> yeah, it's still a sell here, i believe she called it depressing or depressed because china really has not gotten it going. it's only about 8 or 9% of their overall revenue. it's a big headwind. the things i'm concerned about is one, bmo bank came out saying

their transport specifically trucking loans are under pressure, and they're seeing growing problems. and cummins after market segment is slowing down. they didn't raise any of their guidance or forecasts which leads people to think there's a lot of o'headwinds and even management is indicating there's headwinds. it's still a sell for me here. >> victoria greene putting the brakes on cummins. >> go grab yourself a handful of gol goldfish. coming up, step aside. bar ben barbinheimer. >> i'm not sure taylor swift wants to be seen in a split screen like this. >> no, we'll discuss that and much more when "power lunch" returns. >> announcer: catch the market zone today and every weekday on "closing bell" sponsored by e-trade by morgan stanley.

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we've got about four minutes left in the fprogram, let's get right to it. move over barbinheimer, get ready for the exor swift. ju julia boorstin joins us to explain this dynamic duo. >> well, taylor swift's concert movie is launching on act 15th. that's the same day as the exorcist bloeliever. this has sparked some chatter on x formerly twitter, about how

this could potentially launch the next barbinheimer double feature phenomenon. swift's record breakinger eras tour will be available for fans at the movie theater for a lot less than the cost of her concert. tickets are priced at $19.89 for adults, get it, 1989, and all the major theater chains will run the movie for four weekends. they're going to be appealing to the 3 million fans that attended the u.s. leg of swift's tour and also to all the other fans who could not afford it to go or make it there. the box office, which is lagging pre-pandemic levels could use another cultural moment to sell tickets and get people into theaters, especially this fall. >> i saw, julia, that amc was having to set up a queue for people to even buy the presale movie tickets and that it was acting a little glitchy or

having lag times or whatever. >> massive demand. >> i'm wondering if that helps ticket master and live nation when they're trying to explain why some people couldn't get through because of the bots getting involved. do you think there's going to be a resell market for movie tickets? >> maybe or maybe they'll extend the run or add more show times, but i did hear that the major imax theater in new york city sold out by 9:00 a.m. this morning. so huge demand. >> all right, julia, thank you for that. >> wow. >> tomorrow, september 1st, that means interest on federal student loans will begin accruing again ahead of payments starting in october. an estimated 44 million americans have student loan debt. they've been warned this moment is coming, but this means now that we do expect to see some impact from student loan payments. >> yeah, and i think that money has to be paid one way or another, though, i heard, i believe, it was one of the administrators of the student loan program saying that they weren't going to really start to

enforce collections for another eight or nine months at a minimum. a federal judge says burger king will have to face a lawsuit accusing it of false advertising. yes, in the class action suit filed in florida, it claimed that whopper burgers appear much larger on menus and ads than they do in real life. can you imagine that? >> burger king parent restaurant brand says the claims are false. >> in fact, they say they use the actual whopper burger in the picture, but hello, people, maybe you should be blaming the photographer who makes it look so beautiful and appealing. >> food stylist who makes it look good. i say you be the judge. >> he says the jury should have a chance to see the pictures and the whopper. they're going to have food stylists in there making it look really good. >> double whopper with cheese. >> bk have it your way. >> the whopper king, the burger king. a woman's volleyball match in the midwest drew a crowd of 92,000 fans last night. the university of nebraska said

the game at lincoln memorial stadium broke the world attendance record for a women's sporting event. the team defeated omaha 3-0 in a sweep. memorial stadium's official capacity is just over 85,000 for football. >> standing room over, baby. >> seats and standing room only gave it extra room. congratulations to the very good women's volleyball team at nebraska, and thank you for watching "power lunch." tyler, thanks so much. welcome to "closing bell," i'm scott wapner live from post 9 here at the new york stock exchange and this hour begins with a question on everyone's mind, will september sizzle or stink for stocks? history suggests the latter, but what about the market's newfound momentum, that's key. we'll discuss with goldman's tony pas carell low in just a moment. your score card with 60 minutes to go in regulation, the fed's favorite inflation, read the pce, it came in just right, which sent yields lower and stocks higher, at least initially. the dow has been in a fight all day long to stay positive, it's having a little bit of a tough