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three companies. >> and fast food workers in california going the other way, about to get a big raise. we'll examine the potential fallout there. plus rumors swirling around disney and which if any tv networks it might sell to whom for how much, we'll try and make sense of all of it. kelly. >> first, let's get a check on the markets. we see the dow just off session lows, down 258 points. the s&p 1.1% to the downside. the ten-year treasury yield did start moving higher overnight. that could be playing into the higher yields here, and the reason why we're seeing some pressure there. let's also check out arm holdings in its second day of trading holding on to the first day pop, even building on it. at $61 a share. and lennar shares are lower after reporting results. lower home prices actually cut into profit margins, but the market remains, quote, constructive. shares are down about 3%, still

up 25% year to date. we'll get the trade on this one later in the show. >> kelly, despite targeted strikes by autoworkers beginning today, shares of the affected companies are actually all higher. several analysts saying the strike could create a buying opportunity in the shares. citi, for instance, saying if the stocks fall on the strike h headline, it would consider buying at the depressed valuations. you have ford unchanged and the other two higher. let's get to phil lebeau from detroit. >> and just a few minutes ago, fitch put out a note saying the automakers, ford, gm, stellantis could withstand an extended strike because of how much cash on the balance sheet at this time. they don't want to see an extended strike, but at the end of the day, a lot of different things but the wages and how much that may increase over the next 4 1/2 years which is the length of the contract being negotiated. the uaw said we want 40%.

that was the original position. they have since then, there have been numerous reports they would come down maybe to 36%. you have gm and ford at 20% over the life of 4 1/2 years and stellantis at 17.5%. this afternoon, the president weighed on his thoughts about the uaw and its push to make more money. >> the companies have made some significant offers. but i believe they should go further to insure record corporate profits mean record contracts for the uaw. let me say that again. record corporate profits which they have should be shared by record contracts for the uaw. >> that is one reason why many believe the uaw has leverage right now. the strikes at the plants that are being hit, one here in michigan, one in ohio, one in missouri, these are among the most popular models coming out of those plants. look at the day supply for the chevy colorado, which is the pickup truck built outside of st. louis and the ford bronco, which is built at the michigan

assembly plant just west of detroit. 35 and 37-day supply is not a huge amount in terms of supply in the market. it doesn't meanwhile they're going to run off dealer lots tomorrow, but you would like to see it closer to 65 days in a normal market. gm and ford over the last year compared to toyota and honda. you know where toyota and honda are today? at 52-week highs. i know we talk a lot about the wages and the comparison with tesla because of electric vehicles, but keep in mind that the big competition is also the foreign automakers in this country, at least for the big three when it comes to cost for building a vehicle. >> this may be a dumb question, but what explains the difference in stock performance? is it that the toyota and the honda brands are selling that much better than gm, ford, and stellantis brands, particularly in trucks? they don't dominate in that sector at all.

>> sure. i think it comes down to investor sentiment. at the end of the day, when you look at especially gm and ford, those stocks do not trade relative to the record profits that they have made in the last year. investors, they hear that, and i have reported on those record profits. and usually see a bump, but you don't see it last for long. what's driving the sentiment on those stocks is whether or not both of those companies can successfully transition to electric vehicles. and the jury is out on that. they're making big investments there. but whether or not they can succeed and compete with tesla, has cars and trucks selling as well as tesla, that remains to be seen. >> phil, thank you very much. phil will be busy all weekend, i'm sure. and another labor fight between fast food chains and unions appears to be over for now. the california state senate passing what they say was a controversial bill yesterday that would raise the minimum wage for fast food workers to $20 an hour starting next april.

here to discuss the impact and the growing labor tensions overall is mary kay henry, president of the service employees international union along with our own kate rogers. first, kate, give us the details. >> hey, there. thanks so much. as you said, this is a landmark bill for the state of cal california. most importantly getting that wage to $20 an hour. we want to thank you for being here with us. of course, this is a win for your worker members, but there have been some critiques from franchisees and business owners that this could be extremely costly. is there a concern it will put workers out of the job in the end? >> this is a transformative agreement that has been reached that allows workers, franchise owners, to sit at a table together and solve systemic problems that have existed for a half a million jobs in california. >> and california typically a leader for the nation in terms of legislation of this nature. what states is the seiu

considering next for this organized action? >> the fast food workers movement has been led by the bravery and tenacity of black, brown, and immigrant women, primarily, and men who haven't let no stop them. and so in california, we're going to continue to organize to set the table that has been won to solve problems on the job. we're going to educate workers about the 25% wage increase that they will get in april of 2024. and they will keep organizing to solve all of the other problems with health and safety, scheduling, sexual assault and discrimination that occurs in these jobs, and then their movement has been a national movement. and the solution that they created with the fast food sector council is going to go to as many states as workers will be organizing in. >> and you mentioned obviously this is a fast food council, not all restaurants in the state of california created equal in this

bill. why focus in on fast food companies in the qsr space in the way this has? why was that important for the seiu and what do you hope to accomplish? >> because the original demands came from workers working for the major multinational corporations, mcdonald's, wendy's, and burger king. they knew ceo comp was going through the roof, that there was record profits, that these same companies pay living wages and have good standards for jobs in other countries around the world. sowhy can't these companies make that happen in the united states? and still do right by consumers. and we think that fast food council is a way for the industry to stop driving a low road model on cutting labor costs and compete on quality services and products. and for workers to finally be able to work hard for a living and provide for their families

and themselves and for their children imagine being able to do jobs outside of the fast food sector. >> mary kay, it's kelly back here in the studio. we have been talking about the fast food business. california next may be one of the states hit by one of the biggest health care strikes we have seen that was just authorized against kaiser perm ane aniente, and the autoworkers strike. and we want to give you the president's thoughts. >> let's talk about the economy. i want to start about talking about this big standoff between the autoworkers and the manufacturers. my question for you, mr. president, whose side are you on in this? >> i'm on the side of making our country great. the autoworkers are not going to have any jobs when you come right down to it because if you take a look at what they'ring to with electric cars, elect rr cars are going to be made in china. the autoworkers, i tell you what, the autoworkers are being

sold down the river by their leadership, and their leadership should endorse trump. the reason is, you have choice. like in school. i want school choice. i also want choice for cars. if somebody wants gasoline, if they want all electric, they can do whatever they want. they're destroying the consumer and their dy're destroying the autoworkers. all of these cars are going to be made in china. the electric cars automatically are going to be made in china. >> let's talk about uaw's leadership. the president has withheld his endorsement of president biden. but this is what he had to say about you. quote, another donald trump presidency would be a disaster. how would you win that endorsement? >> well, if that's the case, i probably won't win. i don't know the gentleman, but i know his name very well. i think he's not doing a good job in representing his union because he's not going to have a union in three years from now. those jobs are all going to be gone because all of those electric cars are going to be made in china.

>> so it's a fascinating point that is absolutely a threat to the auto industry, and maybe for service workers they can sit here a little prettier and say well, my mcdonald's job, my job as a nurse, that can't be outsourced to china. do you expect those workers to have more bargaining power and how much bargaining power do you expect the uaw to have? >> our 2 million members stand in solidarity with autoworkers. i completely disagree with the arguments that i just listened to because we have as a nation decided to invest in the clean energy transition to electric vehicles. there are millions more manufacturing jobs that are going to be created thanks to what president biden pulled off with congress in the past two years. and each of the big three auto companies have announced joint ventures that they're going to open up inside the united states of america.

so the autoworkers' demands are righteous and just. the auto companies are earning record profits. billions of american tax dollars are going to be invested in opening up an electric vehicle industry in this country. and those jobs should be good union jobs. >> whether, mary kay, the ex-president is correct that autoworkers in the united states face an existential threat from china or notis, i don't weigh in on that. i have no idea. but i wonder where you think the service jobs are going to go in the face of artificial intelligence, robotics, and automation. might those three things come together and disintermediate the industries you and your membership serve so admirably? particularly in fast food and

hospitality? >> well, i think the real issue for service jobs is for workers to be able to have the ability to be in a union and collectively bargain over the introduction and use of artificial intelligence in this sector of the economy. and so i really look forward to replicating the fast food sector council in as many states as possible, and finally convincing the big three fast food companies to set a national collective bargaining agreement, because i would love to transform those jobs through artificial intelligence in a way that unleashes the talent and creativity of working people. >> mary kay, last quick question here. joint employer did not make the final cut here. will the seiu be continuing to push for joint employer liability, meaning corporations take responsibility for actions at their franchise locations in the future and why? >> well, you know, the fast food workers movement has been the

best way to hold the employer accountable. we will continue to connect mcdonald's, wendy's, and burger king multinational corporations to their franchisees because we do believe that they are joint employers. we're organizing and striking and bargaining and legislating, and that's why this fast food sector council is so significant in the state of california. why we need to replicate it in other states, and why we need to transform national labor law to actually make it possible to hold multinational corporations accountable and get them at the bargaining table to make decisions on wages and benefits. >> okay, i think we're going to leave it there. thank you so much for joining us. back over to you. >> kate rogers, thank you. mary kay henry, we really appreciate it. big, big moment for all of these strikes across the country. you can watch, of course, kristen welker's entire

interview with former president trump this sunday on "meet the press." kristen has also reached out to president biden for an interview. we should note, who hasn't agreed yet. now let's turb to disney, which is in talks apparently with several bidders to sell its abc network. something the ceo bob iger has hinted might happen, as he tries to remake the company in the streaming era. the stock, disney, down 23% this year, and more than 50% below all-time highs. let's bring in cnbc.com's alex sherman with more on how this process could play out and who the possible buyers could be. alex. >> yeah, thanks. i think we're early, very early in this process still. in fact, disney released a public statement last night saying look, we made no decisions whatsoever here. but we're thinking about what we might do with our assets, which echoes what disney's ceo bob iger said to our own david faber

a couple months ago. disney wants to transform its business to a more modern looking company, and it realizes that the traditional pay tv bundle is declining, has been declining for years. and it's kind of finally it's come to jesus moment here where it's like look, we may need to modify this company. we need to sell off some of these assets that used to be crown jewels for us that aren't anymore. >> what could be bundled along with abc and any possible sale and who might the buyer be? or buyers? >> so there have been preliminary discussions with nextar, an owner of many local affiliate tv stations around the country. it also owned the cw network or the majority of it. it's starting its own sort of news network called news nation, it owns the hill, other digital media assets. it makes a lot of sense they

would be interested in buying the eight owned and operated local stations that disney owns, which are in big markets typically, chicago, new york, l.a., disney owns eight of these, in addition to the abc network. the interesting question is, does nextar also buy abc? that would be really industry changing if one of these local tv network affiliate companies owned the network itself. that doesn't exist today, of course. cbsobed by paramount. our own parent company nbc universal owns the nbc station. fox owns fox. that would be the real industry shaker. the question i have there is if disney wants to stay in the sports business, and wants to keep owning espn, do they really want to sell the abc network? because so many sports that air on espn also air on abc. >> alex, and also talk through since we haven't seen that before, what would it look like, what would the implications be of a tv operator like nextar

owning a marquee network like abc? >> so what's in it for nextar is it could use abc as leverage to get more what are called retransmission fees paid from these local networks. in other words, when nextar negotiates with a large paid tv operator like directv or dish or comcast or charter, there are fees paid from the pay tv operator to nextar for the right to caro those broadcast networks. sometimes you see there are carriage blackouts. we just saw one with disney and charter, where the abc networks and espn and so forth went off the air for charter. so these happen from time to time. in fact, nextar in a blackout right now with directv, trying to get a deal. if they own abc, they have more leverage for those discussions. on the flip side, there are current carriage rights deals that already are in existence with all of the paid tv op

operators and espn and abc with disney, so those deals may need to be rewritten because they're already in existence. if abc were to be separated from espn, i think that is a major complication that would be a factor in why a deal like this wouldn't get done. >> well, thank you very much. we appreciate that. every time i hear nextar, i think of waystar on succession. think, coming up, the setup for the markets as the fed is dead ahead. a lot of debate about what the fed will do and say at next week's meeting, what it will all mean for stocks. >> plus, a quick power check as we lead to the break. leading the s&p 500 is waters. the company makes equipment for the health care industry. the stock having its best day in nearly three years on the downside, lowe's, lower. earlier this week, the ceo saying customers are spending more on travel and concerts and le on messho improvements.

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chief market strategist as dynasty financial partners. david, let me begin with you. you think the fall is going to be choppy and a little unsettled, in part because of competition from higher interest rate bearing instruments. >> that's the main reason, the bond market increasingly when you look further at the curve, credit, munis, they're offering a 5%, 6%, in some cases with a little credit risk 7% return. i don't think the s&p 500 is going to do better than that. not just over the rest of the year but even to the end of next year. i think it's a good time to put more money than usual in fixed income and see how things play out. >> you have sort of a range bound s&p forecast of 4,000 to 4800? >> that's right, i'm the regional cio for dws and i look at all asset classes. we're always invested across all of the asset classes. i have been an equity strategist

for a long time. i tend to favor equities. right now, it's not a goldilocks for profits. we expect profits to go next year, mostly from tech, but a lot of industries will be challenged to do more than 5% earnings growth. with these interest rates, i don't think you get any p e expansion. >> how does that sit with you? >> similar but not the same. for the remainder of this year, we're going to chop around. going into september in particular and given the kind of event risks that exist around the world and some of the credit concerns we may have going into early '24, that's a possibility that we chop for a while. i think ultimately if the fed does start to cut rates in 2024, you're going to get a break for the market and that turns into a bit of a tailwind instead of a headwind, assuming inflation cooperates. we have soon an uptick in energy prices, but i think choppy until we get out of this window where

markets are under pressure. i'm not as bearish on next year as david might be. >> let's talk a little more about the fed and your thought there. what would cause the fed to start to lower interest rates next year? does it mean a major slowdown in the labor markets? does it mean a major slowdown in gdp growth? what would cause it? particularly in light of the fact that inflation seems pesky. >> yeah, i think at the end of the day, there will be an event of some sort, whether it's commercial real estate putting pressure on financial institutions, you know, there's $270 billion of exposure on just small and medium sized banks. there's $1.2 trillion to $1.4 trillion of commercial real estate debt rolled over the next year to year and a half. that could be a trouble spot. if china slows down materially and threatens global growth and domestic growth and the fact real interest rates are too high relative to inflation could

start, jay powell has admitted this, could start the fed in a process towards bringing down interest rates. also, fourth year of a presidential cycle, irrespective of one's politics is typically the second best year of that four-year cycle. this year being the best. so i think there's maybe a little more tailwind coming even though obviously, there are som. >> do you agree 2024 is going to be a year of falling interest rates from the fed? >> our base case is that the fed cuts in the second quarter of next year. most investors, the fed expectations point to that. we share the view that there will be deterioration enough in the labor market to give the fed that cover. but the labor market and the economy, because of jobs and services, is holding up really well. and inflation is indeed stickier, and that last mile of getting to 2.0% is going to be tough work. so what i would argue is it may be the case the fed is not cutting in the first half of

next year. and then the closer and closer they get to the election, maybe they decide to wait until after. take more insurance against inflation staying really low. i think what you'll see out of the fed, no hike in september, maybe a hike in november. but we're all thinking that the new normal interest rates, the fed funds rate, wherever it settles maybe a year or two from now, maybe it's not lower than 3.5%. unless we fall into a recession. >> lower than it is today. >> but we have to get used to the idea we're not going back to -- >> to zero. >> that's what the fed waunnts avoid. they like to give themselves room to cut without going back to zero. >> thank you very much. and ron, thank you as well. appreciate it. on that note, let's get out to rick santelli in chicago. the bond market, rick, ten-year yield, you think that's what's doing it to stocks today? >> well, i tell you, when we look at yields, the only thing i

see is that they're at the lofty level based on where recent or i should say cycle high yield closes are. 5.08 on the two-year, 4.34 on the ten-year, and within striking distance of both. the equity markets, they march to a different drummer many times. today, we see one-year inflation, 3.1%. that is the lowest since march of 2021. five to ten-year inflation, 2.7, the lowest since 2020. so it's math versus surveys. quantitative versus qualitative. hotter cpi, ppi, but surveys are cooling off. if you look at the ten-year that you were just referencing, there's a week to date, keeps pumping up against the 4.30s. they're going to pop through on a close, whether it's today or next week, traders are basically looking for that. we hit the line too many times, and finally, if you look at the dollar index, it really has been loving rates and what's been going on with the slowness in the rest of the globe because

from mid-july to today it's up 5%. kelly, back to you. >> thank you very much, rick santelli. our delivering alpha summit is now less than two weeks away. join us on september 28th in new york for insights from some of the biggest names in business, so much fun, this conference. scan the qr deco on your screen. and we'll be right back with the dow down 278. 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.

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welcome back. it's still above 90. oil is, let's get to pippa stevens for more on this move. >> a big week with wti holding above the $90 level and on track for a third week of gains. we got positive numbers out of china today. that is helping things. we did just get the latest recount number, which saw an increase for the second week in a row. however, it is still 16% below this time last year, so we're still seeing discipline there. interestingly, the dollar has now been up for a number of weeks and usually that pressures oil, knrut think this time around, because it's not, it clearly shows the market is focused on the fundamentals and

the physical. however, we are heading into a shoulder season, so if the dollar does continue where it's at and continue to rise, that could ultimately play into oil here. although of course, saudi arabia still that backstop with matt keppler -- matt smith at keppler telling me they're a pseudocentral bank at this point. some support there. for the time being, gas prices at $386. >> maybe some disruptions to refineries from storm lee on the oost coast. pippa, thanks. >> let's get over to courtney reagan for a cnbc news update. >> hi, tyler. the mystery is deepening into the disappearance of a top chinese military official. antony blinken said this afternoon he has no knowledge of the status of chinese defense minister, he hasn't been seen since august 29th. reuters reported lee is under investigation by chinese authorities according to nearly a dozen people familiar with the matter. lee's absence comes two months after the disappearance and

replacement of china's foreign minister. the texas senate is now deliberating in the impeachment corruption style for ken paxton. the lawmakers will decide whether to remove paxton from office after hearing two weeks of testimony. a verdict could come later today. if convicted, he would be the first texas official to be convicted on impeachment charges in more than 100 years. >> and new york city mayor eric adams handed over the keys to the city to sean diddy combs. he's celebrating the release of his new album, the first studio album he's released in 17 years. >> thanks very much, courtney. ahead on "power lunch," casino hack attack. mgm and caesars hit with nswa.m we'll speak with a cybersecurity expert who says all of the casinos are vulnerable now. that and more when "power lunch" returns in a moment. we cont"

to follow those cybercasino attacks. cyberattacks on casinos at mgm and caesars. they have been hit by ransomware leading to massive system outages for mgm and a reported

$15 million ransomware payout from caesars. our next guest says of all the industries here's worked with, casinos have some of the worst cybersecurity he's seen. he thinks years of neglect are coming back to bite them. let's welcome in david kennedy. one of the best titles i can think of. some of the worst security you have ever seen. why? why have they let it get this bad, given the amount of cash that they're handling? >> yeah, thanks for having me on. it's interesting, the casinos, you think ocean's 11, massive physical security, all of the state of the art facial recognition systems to protect all of this money. but they really consider themselves more in the hospitality business. while they protect money, cyber, networks, things like that have gone neglected over the years and they really have the antiquated times of thinking of it from a physical security perspective, not cyber infrastructure. we test some of the largest

casinos out there, some of the largest companies from critical infrastructure all the way to education to technology. casinos are some of the worst we have ever seen out there, and it's more expensive for them to fix network issues than it is to go and address the security issues bah they don't want any hindrance to their casino operations. >> they don't want interruptions. you have mgm, caesars. are others likely to be hit as well? >> they're on notice. all casinos are on notice from this group as well as other groups. ransomware groups when they havesicsis, they smell blood and start going after the same industry verticals. if you're a casino right now, you're a target. this group, really good at social engineering. it took them less than tn minutes of finding somebody and calling the help desk up and getting full access to their infire infrastructure. that's an insane statistic if you think about how big these corporations and organizations are, an entire downfall by one

employee and a hacker group loosely attributed to russia, the odds are not in their favor. >> that's an incredible story. i heard a prior breach was caused by a fish tank connected to a casino or hotel network. what were rr talking about is something different. what is social engineering? you're saying the harks used linkedin to get an employee's information, called them on the phone and were able to do what? >> a lot of hackers will do open source intelligence gathering. your credentials, maybe i'm an employee who works at a certain location. they were able to find an employee of mgm and call the help desk to reset their password, and they used a technology called okta to let them log into the systems and from there, they start spreading across, lateral movement, to take over more and more systems. that's the damaging part. when an attacker gets access to one system, they start spreading

like wildfire throughout all the rest of the organization and you start seeing these catastrophic breaches especially if they go undetected for large periods of time. devastating for mgm and caesars. caesars may be the largest ransomware payout in history. this is a billion dollar industry now for the ransomware groups and they're not shutting down anytime soon. >> as you look at ransomware hits across all industries this year, how are they running? is this the worst year ever for them? >> you know, it was interesting, when the ukrainian conflict with russia kicked off, we saw a big dip in ransomware. it was really quiet. very strange. but as a q2 and q3 and now into q4, we have seen such an elevated rate of takeovers especially in the private sector that this is by far the largest year and the most amount of payouts we have seen organizations take. they're not focusing on disaster recovery, things woo eknow work against them to recover from them, but also one thing to note

is they don't just take your systems down. they also steal your data, whether it's user information, personal data, intellectual property. they hit you on every front they can. >> very quickly, do most of the victims of the ransomware requests, do they usually pay up? >> over 85% of the customers we worked with pay the ransom. it's devastating for them because they literally can't recover their business. it doesn't look like mgm is going to pay, caesars did. 9 times of 10, they're going to pay to continue to increase their sophistication and we're going to continue to see these breaches occur. >> dave kennedy, thank you very much. >> thank you. coming up, banking on technology. we'll hear from the ceo of a brazilian fintech start-up with dreams of becoming the jpmorgan of south america. that's when "power lunch" comes right back.

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i didn't want to be that person. i decided to give prevagen a try. my memory became much sharper. i remembered more! i've been taking prevagen for four years now. prevagen. at stores everywhere without a prescription. welcome back. there's been a lot of change sweeping through banks this year. and not just in the u.s. jon fortt is here and brings us up close with the founder and ceo of a bapg using technology to make waves in latin america. >> yeah, kelly. david velus is a ceo of new

holdings whose new bank is growing quickly in brazil and beyond. he started the bank after dealing with the hassle of opening up a bank account in brazil when he moved from colombia a decade ago. today, new holdings trades on the nasdaq. he came from more hum bm begins. his parents fled cartel violence and he group in costa rica where his dad had a button factory. >> i spent summers working with my dad in his factory. i was doing little buttons, doing quality, i was working with machines. spending time there. and when i was 12, i remember having saved enough money, my dad, we had a little house in the countryside with some cattle. and i convinced my dad to sell me a cow. and that was a big investment, buying that cow when i was about 12. >> and then he went from one cow

to six. and eventually sold them to help pay for college at stanford. new bank hasn't had an easy path either. velez has had to overcome regulatory hurdles and raise financing, but he's become a major disrupter and plans to push harder from here. >> we have a very clear organic opportunity ahead of us, which is we have half of the population of brazil as a customer, i don't think jpmorgan can make that claim in the u.s., just to tell you how big that consumer base is for us. but we have about 50% market share in credit card, 5% market share in personal loans, 2% market share in investments, 1% in insurance. so big ocean that we have consumers that have trusted us with their savings, with one of the most valuable brands and loyalty in brazil, in latin america. but small market share. so the next 12, 24 months for

us, priority number one is gain all of that share. >> geographic expansion and moving beyond credit card into more loans and investments will be big. as the population gets more accustomed to digital transactions, that works in his favor too. >> from buttons to billions. where is his bank dominant now? >> in brazil. >> credit cards? >> yeah, mainly is where they got their start. because consumer credit is so difficult to come by, even debit cards. he went through this process, having to go through metal detectors to get into the bank to set up an account when he first moved there. they acted like they were doing him a favor. >> it can still feel that way in the u.s. i had a terrible time trying to get a credit card. it's hard if you're a small business or try to get a mortgage or go to a bank. anyway, it's fascinating to see if he can really pull off something transformative. >> you had a hard time getting a credit card? >> extremely, because i never had one growing up. >> not recently?

>> it was pretty recent, like maybe eight years ago. it was really hard. same with a mortgage. i called up my existing bank. >> you need to own cows as collateral. that's the point. >> i think you can get a pretty good credit card. >> jon, thank you. coming up, we'll get the trade on aadobe, lunlar, and a fresh three-stock lunch when we return. ( ♪ ♪ ) ( ♪ ♪ ) ♪ (when the day that) ♪

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all right, folks, it's time for today's three stock lunch. we're going to trade some of the day's worst performers. first, adobe, among the worst laggards on the s&p, and nasdaq 100 despite beating on the top and bottom lines for the third quarter. here with our trades, brian, president at mjp wealth advisors. brian, welcome. good to have you with us. take us through your thoughts on adobe. >> thanks, tyler. i think adobe is definitely a buy. when we look at the numbers, they had an overall good quarter, and again, there's been a lot of excitement this year. there's been priced into the stock of the a.i. frenzy. looks like today's price action looks like investors are locking in profits.

the company is expected to raise prices on november 1st, which is going to be good for their margins, and we know they're in process of trying to close on a $20 billion acquisition in the private cloud and space, which also will add some momentum for the stock moving forward. we just think they're in the center of a lot of exciting things like a.i., cloud software, and that's great from a recurring revenue perspective. but we recognize that the stock is up about 57% or so this year, and it's had a pretty good run. its forward pe around 35 is a little pricey in the market so we'd probably be buyers on a pullback. >> let's turn, then, to schwab, the firm saying it still hasn't recovered from deposit level attrition after its takeover of td ameritrade and client assets continue to walk out the door. what would you do with this one? >> well, kelly, i'm going to be consistent again. i'm going to give this one a buy, and it's because i think schwab is a great company. and right now, the market is not really appreciating the valueof the company itself on a moving

forward basis, and you're right. the stock has really been crushed this year and hasn't really recovered from the steep decline in assets, which really goes back to march as part of the overall banking crisis, but keep in mind they just recently finished an integration with td ameritrade, which really gives them an opportunity to capture some cost synergies, focus on products and solutions they promote to their clients and customers, and also just consolidate assets on one single platform which can create more opportunities for growth. and again, we think the forward pe in this market is pretty attractive. so, we think this stock still has some room to run after this eventually -- after the selloff eventually passes this week. >> all right, let's move from tech and fins, financials, to lennar, the home company. lower, despite posting a top and bottom line beat as profit fell year over year because of lower home prices. what do we think of lennar? >> well, tyler, for me, this one, i'm going to have to give a

sell, and i was a little turned because the valuation is very attractive, with a forward pe of around 13. however, there's plenty of macro headwinds that makes me cautious about this stock. hence why we're being sellers. and look, in this most recent quarter, revenue was down, even though deliveries was up, and that's because right now, buyers of homes are a little bit conflicted where interest rates are, and lennar has to give away a little bit on price, which has been impacting their margins. and right now, when buyers are looking at homes, they're saying, do i buy now at these high rates or wait for rates to come down? even though there's this demand-supply imbalance, we really don't want to be exposed right now to home builders when there's still a little bit of this interest rate drama. lennar is a great company, and this would be one of those we might void for now and just wait for a little bit more clarity on rates and some of these imbalances to play out. >> all right, brian, thank you for your insights today. have a great weekend.

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and will remain a board member. that stock is down significantly so far this year, including, i think, something like 14% today. that may have something to do with it. maybe they just thought that he had been in the job -- i think he had been in the job since 2011 or thereabouts. >> well, remember, this was a $90 stock during the pandemic. ironically enough, people kind of thought, okay, reopening, you know, here we go, and maybe it's failing to live up to expectations. $51 stock. >> served as ceo since 2013, so ten years. >> employees are not too happy about it. staffing from challenger gray and christmas says more than a thousand ceos have left their post this year, up 33% from last year. highest total at the start of the year since they began tracking exits back in 2002. do you remember when we had the last raft of exits? it was, i think, 2020. still not at these levels but iger and some notable departures, and then covid hit. i always watch this as some weird sign of the times. >> earlier this week, the head

of bp left after admitting he hadn't been transparent about some relationships, but there were also business issues in that company, but there have been a lot of changes in the executive suites. while netflix discusses live sports, it does have a strong history with sports documentary series. formula one, tennis, and golf, a series called "full swing," but the u.s. ryder cup team decided to keep the cameras out of "full swing." that's their decision. that's the way it's going to be. have a great weekend, everybody. thanks for watching "power lunch." "closing bell" starts right now. >> kelly, thank you so much. i'm scott wapner, live from post nine here at the new york stock exchange. this make or break hour begins with bulls and bears in a battle. your money caught squarely in the middle. stocks trying to eke out a positive week. it's been anything but easy, though, despite coming off the best day of the month. there's your scorecard with 60 minutes to go in regulation. that's the kind of day, really, it's been. not great. certainly for th