good afternoon and welcome to "power lunch" alongside kelly evans, i'm tyler mathisen. coming up, apple's big event is still going on. unveiling the iphone 15. we'll bring you all the latest announcements as they happen. plus, the government taking on big technology. the antitrust trial against google kicking off a senate hearing on regulating ai and senator elizabeth warren continuing her feud with elon musk. a lot to talk about. >> and we'll get to that, but first, a check on the markets. shares of up -- sorry, a check

on the markets shows the dow is up 65 points today trying to cling on to these gains which are looking to evaporate. the s&p is now down a third of a percent. some declines in oracle, some declines in adobe as a result. all weighing on that average. i mentioned ups and those shares keep an eye on this one, are lower today and on track for their lowest close since february of 2021. the company saying its deal with the teamsters will raise costs by more than 3%. several analysts cutting their targets on the stock. shares are now down 1% over the past three years and apple is the stock of the day. it was up a little bit now it's back around session lows, down 1.7%. 6% drop in the past week. their iphone launch event has been going on for about an hour. we're starrting to get the real meat of it. steve? >> that meat, that's the iphone

15, kelly. so they just announced, finished up wrapping up that part of the event. these are the two regular models. base models will start at 799 with the smaller screen and plus verge will start at 899. i think it's going to go on sell on the 22nd like the watches. the big change is at the bottom of the phone is going to have that new usbc port, a response to the new eu regulations that required devices to use this more standardized plug. apple also introducing the iphone 15 pro line. it has a titanium casing and on the side, they're announcing the action button. we're probably used to that little switch on the side for when you want to mute your phone. that's now a physical button when you press in. you can make it mute your phone or launch the flashlight or

start recording a video. then we have the new apple watches. the series 9. not a huge change here. same pricing as last year starting at $399 and that is going to feature a new chip on the inside that allows certain new features including this new thing called tap where you can whatever wrist you're wearing your wrist on, instead of touching the screen or the dial on the side, you can select things just by tapping your thumb and index finger together. and that's how you select things now. apple crediting that new silica processor inside. but the big thing we're waiting for is the pricing on these pro lines of phones they're talking over right now. we'll see if that price increase actually happens. >> fascinating. i don't know if you know offhand, but samsung had similar features on that galaxy watch. that use your fingers to make stuff happen. is this another case of them saying well, all right, we can be maybe not first with the news but roll it out to the biggest

mar market? >> i'm not exactly sure the mechanics of the samsung version but this is maybe in the similar vein. i think they're trying to solve the problem because so many of us if you're juggling a lot of things or carrying stuff and you get a call or text and want to dismiss or answer it or what have you, the main action button is now going to be replaced by that gesture instead. also, the same gesture you're going to be using on the vision pro headset, they're using that same little tap to select. >> steve, come back with us with more of that pricing info as you get it. >> good with hand gestures in the new york market. >> they could come up with a few more. >> apple stock down 7% in the past week on news china might ban the use of iphones for government workers and workers at government-backed companies despite the arrival of the iphone 15. it's down about 2% today. will any of today's announcement bradley central a catalyst for the stock as we move ahead into the fall and winter months?

let's ask daniel newman, the ceo of research firm, future group. are the changes announce d toda on the iphone the kind of thing that will get people off their couches and into the stores? r recognizing that generally whenever apple announces a new product, they do just that. >> to tap our fingers and run over to the store and not think about it. are we making a big enough improvement in the battery life? improving the features? is it processing faster? you're like, oh, my gosh, i've got to run out. a lot of people have questioned this but they continue to go out and buy these devices. so far as a technology analyst, i'm not super impressed with what i'm seeing from generation to generation, but having said that, apple's faithful tend to show up and this is a big moment

for the company. >> it does feel, whether it's apple you're talking about or samsung model or google model, that we're, that kind of improvements are really small incremental improvements as opposed to anything else. the camera is getting better. maybe the processor is a little faster and so on and so forth. but let's talk about this u usb mini plug. does that make it a more convenient phone to use because now you can use other plugs? >> i don't know if it should excite you or concern you that so far, the biggest announcement to me is the usbc. i think this is a big moment one to show the european commission and its regulatory policy can drive real change within big tech but secondly, i don't know about you, but i've got drawers full of these lightning cables and part of me is frustrated because they're expensive.

at the same time, i have many other devices that benefit from usbc. to me, it just makes sense to have a standard. it's good for us. more sustainable. good for consumers in spend. i can't tell you how many times i can't find that usb when i need it. >> fascinating. what does this boil down to as you watch shares of the company? we've got google, oracle shares way down. there's a lot going on here. >> yeah, i think the macro economy is one of those things that people are watching it and we're sort of saying are we going to have this soft landing and is it smooth and are people goeng to run out to the store and spend $800 on a watch because they can tap their fingers and use it? or are people going to become more conservative. we're seeing credit crunches. seeing interest rates higher for longer. we're looking at the inflation data. i just still don't understand if i have the 14, what is that thing that's going to compel me to run out? that's what apple investors need

to worry about. >> let's talk a little bit about the possibility that china is going to in some way restrict the use of iphones in among government workers or maybe state owned enterprises. what kind of effect is that possibly going to have on apple and its stock? >> well, of course it's limited to that subset of workers but less devices can certainly influence and of course the concerns about china and overarching concerns about china are substantial. we saw what these announcements did last week to apple, to qualcomm and of course it isn't all founded for certain that it's goeing to spread and be a contagion for apple, but if apple can't be competitive and succeed in china, there's no way it has as much tam as it's looking for. so as long as it's constrained by concerns in china, we're seeing this impact the whole market. we're all worried about china. about taiwan.

until we feel more settled, there's always going to be some concern for the companies that have the biggest market in china. >> on that note, we leave it. thank you. appreciate it. >> thanks. let's get you that other big tech story. sharp drop in oracle. dom? >> so with those shares of oracle which are having a way worse time right now than other tech stocks out there, they're down about 15%, worse than apple, worse than the product reveal that's happening, alfa bet with their government antitrust case going up. it's the worst day since march of 2002. revenues missed as did its forecast. one positive was the 66% year-over-year growth that oracle's cloud infrastructure, or oci unit, but that was down

from last quarter leading to concerns about maybe slowing momentum and demand for artificial intelligence related spending. some had a biggest waiting like igb. also the first trust cloud computing ticker. they are also underperforming because of that 15% drop in oracle. i'll send things back to you. >> adobe coming up on thursday with its own report. thank you very much. stocks are mixed today. lower in september so far but as more and more people get optimistic about the possibility of avoiding recession, our next guest is worried the consumer won't be able to keep the economy afloat. plus, ufc and wwe merging into a new company called tko group. will the stock be a knockout for investors or will they get body slammed? our trader weighs in on "power lunch." trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills,

you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. (fan #1) there ya go! that's what i'm talkin' about! and stay on top of the market. (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly. (fan #1) that was josh allen. (fan #2) mmhm. (vo) football season is here. get nfl sunday ticket from youtubetv on us. a $449 value. plus, get a free 5g phone. only on verizon.

here's why you should switch fo to duckduckgo on all your devie duckduckgo comes with a built-n engine like google, but it's pi and doesn't spy on your searchs

and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. welcome back to "power lunch." forecasts have been getting more and more optimistic about the economy this summer. the jp now model estimating a blowout third quarter numbers still but our next guest is seeing weakness in the consumer and is worried about what it means for the economy. let's bring in jim, chief investment officer for concentrated u.s. growth. good to see you. so you're not buying all the soft landing excitement? >> i think we could have a soft landing but at the end of the day, the number of new jobs are slowing. the job openings are starting to

fall. wage increases are declining. and all that pent up savings is being spent down. i think the next couple of years are going to be way tougher for the consumer than the last couple. >> i think that's highlighted to some extend. we've gotten a series of figures out about how real incomes have been declining for three years. the poverty rate was up sharply in the past year. yes, we know consumers might still have more cash than they did prior to the pandemic, but we're starting to get a real sense of the challenge we're in. >> and we're seeing a bifurcation of in terms of the lower end and what you're hearing out of walmart in terms of groceries being a stand out or the dollar stores where consumers are turning to food items and the must buys. so the low end in particular is really stretched right now. >> what about economic growth overall? some forecasts are pretty high. >> the gdp now number is fantastic. i'm little bit surprised because

you look at consumer sentiment or sentiment about the broader united states. it's really negative. the overall sentiment here is not as positive as a 5.5% gdp quarter would seem to suggest. >> so how do you explain that? is it easy as okay, i'm okay but you're not? in other words, people often say their mood is not as good as what they turn out to do. they say i'm going to spend less on christmas this year and rarely do that. >> that's certainly an issue. when you look at some of the numbers, it may be some inventory rebuild and certainly the consumer isn't seeing that. the political discussion isn't helping sentiment either. as i look at company by company results and the huge disappointments at foot locker, the overall consumer doesn't feel as healthy as the underlying gdp numbers suggest. >> so there's a lot of names,

maybe you just mentioned some, that you would be cautious your li like tjx. amazon is up there. there are some places that you can still weather the storm. >> coming out of the second quarter, i was -- about amazon. your cost went down materially because they're handling it less. coupled with one-day delivery means completion rates are up significantly. so you're having this positive fly wheel of lower cost and higher revenue growth. that's really exciting. i think operating margins at the retail business in the u.s. really could surprise for a number of years there. so that's why i like. you mentioned tjx, the consumer is looking for value and tjx is providing that and the buys they're getting from manufacturers is just fantastic.

so that positive fly wheel keeps on spinning. >> and constellation you like in part because of a couple of new board members. >> sure. the knock on constellation the law few years has been around their capital allocation policies and certainly billions of dollars have been wasted. two new board members both with cfo backgrounds are now on the board. you have elliot as an activist investor. i think the company the last few years has been saying we're not going to do anything stupid and these two new board members plus the involvement of elliot really guarantees that. so what we're left with is a really good secular volume growth story and better capital management over the next few years with a depress depressed pe. >> can you hang on to these, when you talk about the consumer broadly, it's 60 whatever, say 66% of gdp. if you're really cautious, shouldn't you be cautious about the whole market?

even the stocks you like, maybe you get them cheaper if you wait? >> i think it's hard to time the market and you have to find the secular winner. the three companies we discussed today are real secular winners. taking market share from the competitors. so the best house in the neighborhood so to speak. >> understood. jim, thanks so much. appreciate your time today. >> thank you. further ahead, senator elizabeth warren demanding an investigation into spacex erov allegations involving star link in the ukraine russia war. we'll explain when "power lunch" returns. or what if i can do diabetes differently? (vo) now you can with once-weekly mounjaro. mounjaro helps your body... ...regulate blood sugar... ...and mounjaro... ...can help decrease how much food you eat. 3 out of 4 people reached an a1c of less than 7%.

plus people taking mounjaro... ...lost up to 25 pounds. mounjaro is not... ...for people with type 1 diabetes or children. don't take mounjaro if you're allergic to it,... ...you or your family have medullary thyroid cancer,... ...or multiple endocrine neoplasia syndrome type 2. stop mounjaro... ...and call your doctor right away... ...if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain,... ...vision changes, or diabetic retinopathy. serious side effects may include pancreatitis and gallbladder problems. taking mounjaro... ...with sulfonylurea or insulin... ...raises low blood sugar risk. tell your doctor if you're nursing, pregnant,... ...or plan to be. side effects include nausea,... ...vomiting, and diarrhea,... ...which can cause dehydration and may worsen kidney problems. (woman) i can do diabetes differently with mounjaro. (vo) ask your doctor about once-weekly mounjaro. (sirens) [due at target in 5!] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go.

roadblock ahead. ...back up, back up... reverse! reverse! next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!] -coming through! -or 3, let's go. the network more businesses choose. transplant received. at&t business. since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. oooooohhh... automatic sashimi! earn cash back that automatically adjusts to how you spend with the citi custom cash® card. [mind blown explosion noise]

let's get now to chicago and check the bond market ahead of tomorrow's cpi report. rick santelli has the details. hi, rick. >> hi, tyler. indeed, many of these traders are very excited for tomorrow's big data and it doesn't end tomorrow. we have the whole week of important data. ppi, retail sales. look at that range. look at how we've come higher after the auction. pair it up with yesterday and it's almost a exact duplicate which makes sense. a lot of consolidation in front of big numbers. let's open up the chart to early

august. our last read was a tenth of july, tenth of july, tenth of august, that was the july read. the reason i bring that up is because year-over-year has not been below 10% since may of '21. i find that very important to pay attention to. and dave niso. so, tomorrow's cpi, how are you or any of the traders that you rub shoulders with in the pits, up in the office, looking towards tomorrow's cpi and the following day's cpi? >> it's kind of a non-event, to be honest. because the fed just telegraphs everything. we'll wait to find out what they telegraph next and we'll go from there. these numbers, there's not much movement off them to be honest with you. >> that makes perfect sense if you look at the charts but i would have to say those are some pretty brave traders because tomorrow, whether it's the year-over-year headline or report, if they remain as sticky as they've been, we could see a

large response. is there any feeling about the stickyness to certain aspects of inflation? >> seems like it's there for a while. it's not really sloewing down. the fed comes out and kind of manipulate it so it's not so bad. it's going to be a soft landing, we'll be okay. there's really no numbers that have come out so far that make you believe that. >> from an inflation standpoint, it's hard to disagree with that and even from a durable goods retail sales standpoint, we've seen some pretty lofty numbers along with weaker numbers like pmi. so there's a split decision on whether the economy's going up or down. do you think global forces or slowing is going to have an effect in the u.s.? >> don't you think it would have to? some of the banking news is coming out of europe. that's very important. >> i think the ecb is even more important because they've announced they're going to stop paying interest on reserves on

the 20th of september. that's important because it's kind of a tricky form of qe. they're forcing banks, institutions to hold on to that without any type of compensation. >> great point. and you should be complicated and they're not. they just -- >> although the other argument is maybe they should stop compensating, some of that money would move back into the economy. on a whole other issue, we see the equity markets today have a similar pattern. we see two out of the three sticky on the indices. the dow has had some green. do you think the equity markets or the interest rate markets are at an important pivot? many say this is the highest interest rates are going to be. they're going to go down. that would be bullish for stocks. >> i think we're at the top of the range. i really do. it feels heavy here. i don't see much more room on the upside. >> you know, i find that interesting and i totally disagree. we're going to have to revisit that. tyler, back to you.

>> all right, gentlemen, thank you very much. meantime, back to steve kovach now at the apple event because we have pricing on the iphone now. steve. >> these are the iphone pro models that staying the same price as they were last year. a lot of analysts going into this event thought apple was going to raise prices but they are starting at 999 for the smaller screen and 1200 bucks, 1199 for the bigger screen max version. some other features in here include a new zoom on the max model. it can go up to 5x optical zoom. last year, that was a 3x zoom and some other great features that for camera enthusiasts, being able to plug your phone into your mac for quick editing. again, i want to reiterate the pricing is remaining the same as it was last year. the regular model, 799 and 899

for the larger and pro versions, 999 and 1199 for the larger one. >> thank you very much. let's get to bertha coombs now for a cnbc news update. >> five memphis police officers have been indicted for their alleged involvement in the january arrest and beating of tyree nichols that led to his death a few days later. the officers are facing three different counts including kpez excessive force and failure to intervene. president biden said today the u.s. is sending help to libya as that country deals with catastrophic, deadly flooding. the u.s. is sending emergency funds to relief organizations and is coordinating with libyan authorities and the united nations to provide support. as many as 10,000 people are feared dead in the country after a storm slammed into libya

unleashing a devastating surge of flood waters. and a former nfl network reporter is suing the league and its cable channel for racial discrimination. jim trotter filed the complaint in manhattan. the complaint claims his contract was not renewed because he repeatedly spoke about the league's diversity issues including a lack of black coaches. the nfl issued a statement saying it takes trotter's concerns seriously but strongly disputed his specific allegations. >> thank you very much. ahead on "power lunch," the u.s. department of justice beginning to make its case that google achieved its 90% market share in internet searchly br by breakin law. details on the tech trial of this century so far when we return.

you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror.

i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. wow, you get to watch all your favorite stuff. investment objectives, risks, charges, expenses it's to die for. and it's all right here. streaming was never this easy, you know. this is the way. you really went all out didn't you?

um, it's called commitment. could you turn down the volume? here, you can try. get way more into what your into when you stream on the xfinity 10g network. the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. welcome back. the department of justice's

landmark trial against alphabet kicking off today, marking its first antitrust case against a big tech company in more than two decades. eamon javers is on the scene. >> the department of justice has just called its first witness and it's google's chief economist. they've been grilling him this hour about the advice that he gave to the company on antitrust issues. what's fascinating is we're hearing direct echoes of the legendary microsoft antitrust case of the late 1990s. the department of justice has been grilling him about warnings he sent in e-mail as far back at 20 years ago. he warned executives against using incendiary rhetoric in public saying phrases like quote, cutting off their air supply shouldn't be used to refer to their competitors. that's because microsoft's steve balmer allegedly used the same phrase and it came back to haunt microsoft in their battle back

in the 1990s. so you have google executives 20 years ago analyzing how the doj prosecuted the microsoft case back then and now the case here surfacing that advice in its case about google. the doj, state attorneys general and google have concluded their opening statements so we're getting into the heart of the case. on the first floor of the courthouse, the same time they're arguing about the microsoft case in the courtroom, there's literally a museum exhibit about the history of the microsoft case and its significance in antitrust history. so history in the display case here and history in the courtroom as well. >> you say the opening statements went to sort of the heart of the case. in simple terms, what is the heart of the case? why is the justice department prosecuting google? or alphabet? >> well, as you can imagine, two

very distikt arguments. they're saying google got to 90% dominance in online search by breaking the law. they're focusing on these payments to apple, billions of dollars of payments in order to become the default search engine. the department of justice is saying that flood of cash really kept other competitors out of the search business and was anticompetitive. what google is saying here is exactly the opposite. as you can imagine. they're saying hey, the reason we're so dominant is because our product is so good. we built a great product. people seek us out. they don't want to use bing and others. we didn't do anything inappropriately. all of the parsing of these 20-year-old e-mails is going to tease out the situation of who's right here. ultimately they don't have to prove it before a jury here, tyler. it is a bench trial so it's all going to be in front of a judge.

it's going to be up to him to make the ultimate decision. so no jury to impress. that means the arguments can get more technical because meta's opi been steeped in this stuff for a long time. you have to assume a level of knowledge here with a judge in this case who's been overseeing this case for a long time and very, very steep nded in the details. >> how long is this case expected to go on? >> well, we think until late october, maybe spill into early november by the time we're done with everybody presenting their cases. then meta will take some time to figure out where he's going to stand on this. we don't expect an ultimate ruling until sometime in 2024. that's just the first part of it. the part to determine liability. if the judge here says that google does have liability under antitrust law, then they go into another phase of the trial where they have to prove what the remedy should be for that. so what is the fix here that google would be ordered by the court to do in order to solve

whatever problem they find here? that's only if the department of justice prevails in this first part of the case that they go to that piece. we could be talking well into 2024 before we have a resolution where you see what kind of impact this has. >> do remedies include fines? >> it's not clear. both sides have been very careful not to talk to us at all about what the remedies might be. they don't want to go there. they're very focused on just whether or not this issue of liability exists or not. >> thank you. eamon javers reporting from the courthouse. artificial intelligence also a big focus in washington today. at this hour, the senate holding a hearing on the need for transparency on ai. this is ahead of the forum tomorrow. it's going to be led by chuck schumer. elon musk, bill gates all expected to be in attendance. here with more with what's at

stake is craig, senior software analyst at mcrory. fred, good to have you with us. let's take the first thing first. the senate commerce hearing on ai. is this sort of a prefunkry hearing? >> the u.s. federal government and many different agencies and many different levels is considering how can one appropriately regulate ai and what are the steps that need to be taken to regulate ai. i think within this context it's appropriate to be having these conversations. we see this happening with the insightshappening tomorrow. >> what needs to be regulated about ai? just level set us here. what are we talking about? >> so, there's many different takes on this topic right now. within the u.s. government, there's a lot of debate object how we can navigate the national security landscape, risk for misinformation that's generated by generative ai and artificial

intelligence models and how to potentially combat china being the steward and leader that sets the standard for ai regulation, which is not necessarily the case as we've seen the eu also pushing forward quite quickly to develop a risk based framework. but i think the question at the heart of the debate now is what are the powers of these new generative ai models? do they have the risk to potentially disrupt society and also, what is the potential advantage here? because fundamentally, we think this is a moment where the united states and other nations, but particularly the u.s. with their technical leadership, can really accelerate innovation and drive many, many, many further discoveries and advances in artificial intelligence if we properly regulate and also invest into cultivating an ai ecosystem in the united states. >> i just hope we don't handicap anyone too much at this point. maybe i'm on the wrong side. so let me ask you about something that feels more, hits

closer to home. at least for right now. you think that china may be poised to disrupt the ai chip set market if its new capabilities are proved. can you talk more about that? this is a huge debate over whether they have this kind of leading edge chip tech or not. >> absolutely. i think the heart of the debate right now centers around how can you train artificial intelligence. typically, those are run on very, very large gpu clusters, high-end compute, which presently is primarily that something nvidia has been dominating. so if there are other entrants into the market that can offer competitive chip sets, we think it can change the way that ai training workloads are performed. i think also critically here, this is not simply a hardware problem. this is also a software problem. one where if there's more accessi accessible and easy to use software offered by competitive

vendors to train ai's workloads and models, that potentially the landscape could open up further. one interesting thing we've seen here is that smaller researchers, those researchers that we hope regulators will not regulate away, have been making substantial innovations here to make the inference workload. that is the models predicting something. for example, i saw one recently where a very large 180 billion parameter model, one of the larger ones, was running on a piece of commercial mac hardware. an m2 ultra mac. so a lot of optimizations going on and i think the whole field could see a willot of innovatio but nvidia's remain the one being used to train up workloads. >> i'm going to ask for a quick answer on a hard question. in terms of ai regulation, you want to enable the innovation

and positives but you also want to restrict mischief makers whether from russia, iran, china, north korea or others from that disinformation or misinformation you talked about before. how do you do that if the u.s. congress and the administration can really only govern what takes place here in the united states? i suppose you could build fire walls to block the mischief makers from those countries i mentioned but how do you do that? >> you're really cutting to a deeper problem here which is the one of trust and what do we trust. i can come to you with a good conclusion of what to do at the moment. i can say however that the cat is out of the bag and many of the models that are open source are now available for anyone to download. you can train your own model at home. in fact, i do that in my spare time. i'm learning how to build this tech myself. it's very easy to do and i think regulation will help us understand how we can establish

trust. i hope that regulation as it's developed will focus on that trust and it's a very difficult problem to solve. >> fred, thank you for your insights today. really appreciate it. and a fight is brewing between elon musk and elizabeth warren over spacex's starlink satellite. that's next on "power lunch." every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. (♪♪)

is your brokerage leaving you out in the rain? (♪♪) are you missing out on access to ipos? (♪♪) switch to sofi invest to get stocks, etfs, and access to ipos before they trade on an exchange. see what ipos are available today at sofi.com/ipo. sofi. get your money right. only at vanguard you're more than just an investor you're an owner. that means your priorities are ours too. our retirement tools and advice can help you leave a legacy for the ones you love. that's the value of ownership.

there are some things that go better... together. burger and fries... soup and salad. like your workplace benefits and retirement savings. with voya, considering all your financial choices together can help you make smarter decisions. voya. well planned. well invested. well protected. mlb chooses t-mobile for business for 5g solutions... ...to not only enhance the fan experience, but to advance how the game is played. now's the time to see what america's largest 5g network can do for your business.

it was one friday night, i has been with him for a while but i was back in new orleans watching a high school football game and i got a message from him and we started communicating that the ukrainians were using starlink to get drone submarines to do a sneak pearl harbor like attack on the russian fleet in crimea. he said but we're not allowing starlink to work within 100 kilometers of the coast. i thought mistakingly that he had made that decision that night. later after there was a publication, he said oh, no, that's been the policy for a while. we geo fenced crimea so there

ko couldn't be an attack on crimea. >> he was explaining a controversial part of his new book on elon musk. musk decided he didn't want starlink to be used in a way that could possibly start a nuclear war but now elizabeth warren is starting an investigation. joining us to make sense of it is amanda, cnbc's national security reporter. what's the latest? >> you know, i have to say that i'm not surprised that senator warren is asking for this probe because that portion of his book sent shock waves not only here in d.c., but also the ukrainian capital and obviously with nato allies helping to finance starlink. he explained a little bit of the details. essentially in his book, he alleges that elon musk told him he had secretly turned off starlink satellite systems once he made, once he was made aware

that ukrainians were going to launch a mini pearl harbor attack on russia's black sea fleet. on our air today, he said that had not been game day decision. that musk had previously had a policy in place that the starlink system would not work in ukraine throughout the conflict. now this calls into question why the united states military doesn't already own something, a militarized version of starlink where u.s. presidents or western governments can make these types of calls. >> so isaacson says that really what happened was an existing policy. why did, that prevented starlink from being used by the ukrainians or anybody else to launch such attacks in that geo fenced area around crimea. or so he says. how come ukrainians had not complained about that previous to this book coming out?

why hadn't we heard about this? >> right. so there's an assumption that ukrainians believed that once starlink reached the country, which by the way, was in the days after russian troops poured over ukrainian borders. they had assumed starlink was operable throughout the country and they had access to it in all regions. and elon musk said that actually wasn't the case and in fact, he made that decision well in advance of this because he was worried about triggering a nuclear war and as it's understood. the united states alongside russia, they own the world's nuclear weapons so nuclear saber rattling has been a constant concern throughout europe and obviously here in the united states and elon musk thought he was doing this activity in the best interest for the globe in terms of not ratcheting up the conflict even further. >> i thought musk was claiming that starlink was not turned on in crimea because of sanctions. >> it's a constant back and

forth here thand that gets to t bigger question that senator wa warren is trying to ask as others do trying to figure out how much money they're going to finance for ukraine. that why is elon musk the point person on foreign policy. that's what senator warren asked today and senator dick chairman, durbin, also asking why is elon musk calling the shots when it comes to national security matters. that gets to a bigger statement that i reached out to the pentagon earlier today and i want to read this really quickly. the pentagon says we are aware of the coverage and interest in the topic and as we stated previously, the department does contract with starlink for satellite communication services in support of our crane ukrainian partners. however, due to reasons of operational security, we have not released additional information regarding their specific capabilities or other details.

they end by saying beyond that, we do not have any additional information to provide. guys? >> all right, amanda, thank you very much. raises all kinds of very interesting questions about the ability of a business to cease doing business or stop selling or covering an area if they feel that it is a dangerous thing to continue doing business in that area. i think this one is going to be one we're going to come back to. >> absolutely. i just want to add the story is up on cnbc.com. you can read exerts from the book and we're going to have the whole tech team. musk is going to be in the capitol tomorrow along with a bunch of other tech executives. >> thanks. ups lower today as details emerge around the actual cost of the teamsters contract. we'll trade that name in three stock lunch, next.

all right. time for today's "three stock lunch." we'll trade some of the day's biggest movers starting with u.p.s., shares down more than 2.5% today, on track for its lowest close since february of 2021. the ceo is saying the labor deal with the teamsters will cost less than $30 billion. r

ryan, what's the trade on u.p.s.? >> hi. good afternoon. i like u.p.s. i know the market doesn't like it today. it's had a tough year. valuation perspective, it's trading at a below-market mul multiple, it yields a nice dividend around 4%, and from a catalyst perspective, who's buying less online? more and more consumers are buying things online. it's huge barrier to entry business. u.p.s. is the main player in that. and i think the stock has a lot going for it, and i think it should be something that people consider, you know, heading into next year. >> sticking your neck out. all right. let's see what you'll do with casey's, up today. sales declined, but rbc is raising their price target. we don't talk a lot about casey's. consumers are in a questionable position. what would you do with this one? >> yeah. this is a smaller company, obviously.

it's got 2,500 convenience stores, mostly in the midwest, so not a lot of people have heard of this one. it's growing, though. it's adding about 150 stores, so that's a strong catalyst, and i think the consumers, when they're on the roads and thirsty or hungry, they'll stop and buy food. that's just the reality of it. they'll slow their spending in other ways. for those necessities, they'll still spend money. i think this stock could benefit from that. the multiple is okay. it's not cheap or expensive. it's kind of in line with a market multiple, but i think the catalyst here is growth for this one. >> all right. let's go finally to tko group holdings, a newly formed company from the merger of wwe and ufc. shares started trading on the nyse today with ari emanuel as its ceo. what's the trade here? this is a complicated corporate marriage. >> it really is. but what a marriage. i mean, talk about businesses

that can tellsell stories and deliver marketing blitzes and campaigns. this is a strong marriage of different businesses, but that's what they do. they sell storage, and to marry it with a hollywood agency i think is so apropos. from a consumer perspective, even though we might slip into a recession as evidenced by this strong blockbuster concert we had this summer, the series this summer with taylor swift and others, consumers will still spend on live entertainment. tko provides a lot of live entertainment that consumers want. i think i like the stock. >> the hollywood agency that you referred to that is involved here is? and are they the owner of these two brands or what? >> yeah. so you have the ufc combining with the wwe, so from that perspective you're getting two really nice businesses, generational businesses.

i grew up watching wrestling, and i'm sure my kids will watch it at some point. the ufc is growing like crazy around the world. so i think it's you something that is very interesting. i think live entertainment like sports is very popular. i would be a buyer of those types of businesses. >> ari emanuel as the ceo of endeavor, combining the two together. speaking of character, quite good. >> i agree. >> ryan, tnkha you. don't go anywhere. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market.

e*trade from morgan stanley.

the citi custom cash® card a different kind of card that automatically adjusts to your spending earn 5% cash back on your top eligible spend category up to $500 spent each billing cycle learn more at citi.com/customcash

welcome back. the world at the beginning of the end of fossil fuel use, the iea are predicting consumption will slow down because of evs and, while this may happen in the near term, as we watch oil prices ramp up, there's still high demand for the fuels. >> we've heard things like this many, many times before. foss sill fuel use continues. >> it disincentivizes more expansion and -- >> coal, oil -- >> if it's natural gas, that would be more key. >> china set to become the world's biggest car exporter this year taking over japan,

ending dominance by the european groups. china's factory groups are producing more, resulting in massive overcapacity. chinese brands coming to town. we all feel bad for irge. -- aaron rodgers. i had the same injury. lose the crutches, go with the scooter. >> and somehow they pulled off a win somehow in spite of everything. >> "closing bell" right now. welcome to "closing bell." i'm mike san tolly. scott wapner just finished up a conversation with jeffrey gunglach. he will bring us the highlights. we begin with stocks toiling in the face of two crucial catalysts, the s&p 500 sitting about halfway between its summertime high and low as bond yields and oil push the upper end of their ranges with the cpi