>> welcome to power lunch. i hope you had a good weekend. coming up three strikes and they're out. autoworkers striking as certain plants. actors and writers still out. now healthcare workers could be set to walk off the job in the next week if kaiser permanente. we will get the latest on all of these battles. plus we talk about the possibilities and the possible problems of ai with tech

innovator steve case. he will get his take on elon musk possibly building a factory in saudi arabia. let's get a check on the markets. some gains about 2/10 of a percent across the board today. earlier we were flirting between gains and losses. still plenty of room to see how this shakes out into the close. clerk shares closely today. the company was hit by a cyber attack. it will have a material impact on his first-quarter results. in part by pushing up it cost. she is a down three quarters of 1%. they sunk a little bit now. we will have more on that coming up aviation is right after announcing they will build a manufacturing facility in ohio. expecting to build 500 electric converter go takeoff and landing aircraft ebt ol. still the stock has been volatile as you can see. almost a 6% pop almost 7 dollars a share. arm holdings is lord the big ipo from last week after bernstein initiates on the stock with an underperformed rating. you can see 7% drop now to $56 a share. still above both the ipl and

the open price. workers are striking back across nearly every industry it seems. we've seen lots of picket signs over the past few weeks. the latest being the uaw. putting the auto sector at some risk. hollywood shutdown still showing very few signs of ending if any. and now even healthcare workers are calling for actions. but we start with the autoworkers and the big three.>> tyler we are here in toledo ohio across from the stone lances plant where they build the jeep wrangler and the jeep gladiator. we have 20 uaw members behind me picketing at the state. there is 10 gates here so you get about 20 to 30 at every gate. they rotate throughout the day. the impact here in terms of production it is substantial. the wranglers is one of the best-selling jeep models that they have in the u.s. but also we take a look at the impact for ford and gm at their plans that are suffering a strike right now. gm 3650 vehicles lost production.

that is what would happen if there is a strike that goes through the rest of the week. ford 4000 still lances at 6600. by the way speaking of general motors it may curtail production at its fairfax kansas plant. that is where they built this cadillac ct for the chevy malibu . why because stampings that are used in those vehicles come from the gm plant in winslow missouri. uaw is on strike there. if you can't do stampings you can build fairfax kansas. don't be surprised if we see an announcement about the beginning of layoffs for as many as 2000 workers as soon as the next couple days from general motors. then you have ford and -- they help more talks with the uaw today. that is about all i've been able to gather in terms of the talks. it was not deemed as measurable or different i think this is an ongoing negotiation. where we are going to hear about them talking at a wriggly basis. but they are still very far apart in terms of coming to an agreement. finally take a look at the auto

dealer stocks. the reason i bring this up we still see product flow to the dealers who have bought models. in particular full-size pickup trucks and full-size suvs. those of the most profitable. and popular models that are up for sale. as long as that production continues the dealers will continue to have inventory of some of those most popular models. a quick question. at the point at which these actions resolve themselves do you expect they will resolve at different times and different manufacturers or will it all be all at once within a matter of a day or two >> my guess is a little bit of the first where you have one negotiation that is wrapped up. it may take a few more days for the other automakers to wrap up their negotiations. remember these are not completely identical contracts. but they are very similar. very very similar.

once someone gets locked in whenever that happens that is a pretty good indication that perhaps the next contract will lock in with another automaker. there is always somebody who is last. usually by a few days. it doesn't usually drag out longer than that.>> is the uaw worried that the move to electric vehicles will reduce overall workforce headcounts over the next decade or do they see the possibility that that is switch is going to mean more rather than fewer jobs? >> they know it is fewer jobs. it takes fewer people to build an electric vehicle. you don't have the engine and transmission manufacturing. what they would like to see is the battery manufacturing facilities those are set up in this country under joint ventures let's say between general motors and a korean battery company or ford and a korean battery company.

those joint ventures are not governed by this contract. the uaw would like them to be governed by this contract. that is one of the sticking points that is out there. >> very interesting. thank you very much. you will be following it for us. as that strike begins the one in hollywood goes on and on. talks are set to resume this week. they clearly missed the hope for labor day holiday. tensions are palpable as some tried to cross the picket lines. drew barrymore facing backlash after initially announcing she would try to resume her show despite the strike to help avoid layoffs. julie has the latest. this got to be a 110 something like that.>> it has been a long time. right now we have barrymore voted to pressure as the strike drags on. the writer strike is in its 139th day. the screen actors guild strike is in the 66th day. barrymore backtracking on her decision to return to the air

without her three union writers and with picketers outside her studio. this decision made after backlash on social media. the talk as well as bill marr also delaying their returns to tv while other daytime shows including the view have resumed. now it is picketing continues the alliance of studios is meeting with the writers guild on wednesday. this new sparking hope of resolution. the wga just announced membership an email saying they won't comment to while they are negotiating but know that our focus is getting a fair deal for writers as soon as possible. raymond james warning in a note today while we think studios and investors embrace for the impact on fall programming along the strike would be more noticeable from the viewer standpoint. continued overhang on the stocks. the strike just add to the pressures on the am pt member companies that include a soft add market court cutting and see competition in the streaming market. meantime the cost of the strike on hollywood community is massive. estimated at more than $5

billion nationwide. according to the milliken institute. i'm curious julia, has virtually all creative work stopped on movie television projects? or are there people out there directors writers creative people who behind the scenes are even now talking about and maybe working on future projects or is it really frozen in place? >> it is really frozen. these guilds are serious about making sure that the writers guild anyone who is a member of the writers guild is not working on a project that could be benefiting the studios they are negotiating against. there have been some talks of having sort of some of the independent studios do productions. there is of course production overseas. when it comes to production remember you really cannot shoot anything without actors. things really have come to a screeching halt. i think they are plenty of writers who may be working on

the great american novel or be thinking about independent work they would like to be doing. nothing that is under contract with an am pt studio can actually be moving forward right now. there is a sense as soon as the strike is over production is really going to take off again there's a big backlog of things that were ready before the strike. that as soon as production can start again there's going to be a real backlog. there is actually going to be probably hard to get production space as a higher cruise. i think people are hoping that happens sooner than later. >> thank you very much. covering the hollywood strikes for us. now to the third leg of the labor pains in the u.s. right now. a deadline looming from one of the largest health plans in the u.s. 60,000 workers at kaiser permanente on the west coast voted to authorize a strike if a deal is not reached by september 30th. 98% of the votes were in favor of authorizing a strike. the biggest complaint is money. workers saying wage increases

have not kept pace with inflation. they say understaffing has led to long wait times and neglect of patients. as we look at these labor disputes we see unintended consequences of inflation. prices soared quickly and wages did not keep up and that was the workers or the ones who were feeling the pinch. even though wages have risen, and more workers in more enterprises are making more money. it did not keep up with inflation. so they feel like they have lost plays. >> it lacked big times. we've inflected since real wage gains have been better the last few months. it doesn't matter. inflation is not coming down in groceries and especially gasoline where people feel more of a sense of relief. labor market is still tight enough can support these kinds of actions. they are going to go for it especially if they see molly when you saw the big headlines

about what the airline workers and the 40% and those kind of things. it galvanize others to step up and say we are going to go for this as well. this might be our moment. still to come we are two days away from the fed decision and hardly anyone expects them to hike rates again except our next guest. he will explain his contrarian reasoning and what it would mean for stocks. in today's power check it is about what people want and what date they don't. apple is one of the biggest gainers on the s&p up more than 2% in the dow jones is early orders of the apple assuming on the negative side moderna even pfizer cfo cast doubts on how many people will get their booster shot this fall. investors sending that stockblower 8 1/2%. as a go to break here's a quick glance of the 10 year yield headed the fed meeting. zooming higher but sliding as the session goes on. we touched about more than 435 is you can see right there. 431 power lunch now. we will be right back.

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welcome back. the major averages off session highs okay ahead of a key fed decision on interest rates. we will be there for it. the fed is widely expected to hold rates steady our next guest said he thinks we could see a surprise rate hike. managing partner at -- financial group. welcome. explain your argument.

>> you are pretty much alone. i've been pretty much alone for probably a few months now. so the feeling is not a new one. i think that when we look at all the data, there are troubling sides about inflation. for the last few months i have been harkening that we have been actually releasing much disinflation. it hasn't been subdued. we are still counting the winds that we scored last year. and several months ago as inflation is continuing to go down. as we are continuing to experience inflation. that is just not the case. core has been going up 30 to 40 basis points since october. we had two months of reprieve in june and july. now we are back at 30 basis points. when you look at the underlying metrics only electricity used cars and airfares declined more than 70 basis points. we have to wonder when the runway for that with the strikes, with the fuel, with

energy cost when that runway will run out as well. and so we haven't been seeing much disinflation to begin with. we were laughing these the base effect from last year. these huge numbers from june and july. we are seeing across the board in various industries as you guys covered of the cost the cost of capital for businesses. i think that with the ppi we just saw with the uptick in inflation the last couple months, with still record low jobless claims and still record low unemployment that the fed may very well be moved to do another 25 points. >> do you expect this man meeting or in november or does it matter must make >> both. on the one hand i if i had to place the odds i would say this meeting. a member might terminal rate is 6 1/4.>> would get as close to there. we are close the most thought we would be to begin with when

i made that forecast a year ago many called it alarmist or ludicrous. other choice after adjectives. we are within reaching distance now of it. but to your of the point i'm not sure it really matters. at the end of the day with a 525 basis point raise already does another 25 does another 100 to might terminal rate target is that what makes the difference is mac or is it we have not felt the full impact of the 525 they have arty done? >> i could say maybe they should be cutting rates right now. i could tell you a story. in which all of a sudden you get to q4 it may be q1 of next year the economy starts weakening. everything is falling apart. peoples heads are falling. and you look back and you say there is supposed to be leading body all the leading indicators are terrible and have been. all the rest we are just waiting for the full effect to come. if they were to go off of what

could happen in six months time it might tell you something different than what has happened for the past six months. >> you are making a non- consensus argument with that case as well. when i am on the shows frequently a pet of the guest to say we've reached a trough in our earnings. i'm not sure the consensus view is that the macroenvironment is going to be that difficult.>> i'm just saying if you sort of say i think they should keep hiking. there is an argument to be made that actually policy is already too tight right now. >> we could make that argument. what i think though just based on the conversations i hear you guys have and that i have is that i'm actually probably a little bit more dour on the consumer in the macroenvironment for businesses than most. i have a hard time reconciling that with rate cuts certainly for this year which we talked about the beginning of this year. and even into next. i doubt we get rate cuts next year. >> let's leave the theoretical,

on inflation and the fed and let's bring it home. what is this going to mean for my money? what is it going to mean for stock holdings? >> i think we are going to revisit exactly what we saw last fall. i think we will revisit that level. for me -- >> you see a selloff coming. if we are not already in it. >> it is really this is based on a difference in my view and consensus view. i don't see how we get from three straight quarters of negative earnings growth with a toughening environment with cost of capital that is higher. with ppi indicating supply costs are higher. with more challenges on the labor front. i don't see how we go from -4% -5% earnings to a flat third quarter. i don't see how we go from that to a negative to a positive 8% fourth-quarter or 245 in 2024. i'm at 225. when i put 17 or 18 -- that

gets me to 3800. that is not consistent of you. consensus is view is 8% in the fourth quarter and 20% next year. i just don't see how we get there and this. thank you very much.>> still to come ipo tko. some of the most anticipated names set to go public. seeing their valuations cut down dramatically. is the lower open price better for them in the long run? we will discuss next ey. 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. (woman) what if my type 2 diabetes takes over?

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>> the big tech ipl is back. first arm and now is the card. also -- another venture backed company. these listings are looking different than a few years ago. more for us in today's tech check. >> we are still early in this round of ipos. there's only been arm. we are looking to insta cart which is well known household name. which is an enterprise software company that has been popular with investors if years ago. as you said we are at a very different time. one the market is more fragile. we don't know how they will go this week.

this time around it has been characterized by downed rounds. when a company raises money at a lower evaluation than their last round. insta cart was valued at $40 billion if years ago. is going to go public around $10 billion. clay beale as well was valued at around i think $10 billion in his last funding round. it will go public around that slightly less. it may be tells us that bankers are being conservative this time around. there is also the issue of scarcity. the floats in these ipos are incredibly smart relative to what we've seen over the last decades. the numbers on average companies have sold 16 to 29% of their shares in ipos over the last decade. arm clay beale and insta cart are all floating less than 10% of outstanding shares. that is different and that could lead to volatility on those first trading days. part of that is they are looking for cornerstone investors. investors that agree or are given an allocation of shares at the ipo. big names like we saw with arm

and amazon in the case of insta cart is looking to norwegian norway's sovereign wealth fund. that provides little support. in hopes to drum up some more retail enthusiasm. interesting to see what happens. all of these factors are important for the sustainability of this window staying open. it is much better the public to get in on the downside than on the upside. what about employees? do we have a sense of whether they will still be well in the money at these levels? are some of them frustrated they will get maybe a 9 billion instead of 50 billion valuation for their company west next >> a lot of the employees especially the earlier ones they will be okay. there are things they can do on the cap table and financial engineering to make sure employees come out okay. they make some money from this. it is complicated. it is not as much as if they were looking at a $39 billion valuation.

you and i have talked about how downed rounds could be good for the retail investor. a word of caution as well. the last time we saw a valuation let's call it flat that was uber. 2019. it was disappointing because it had raised so much money as a private company. the ipo was around that amount. it still did not do well. investors have to be careful. there are some similarities. they both get economy companies. with the increase in competition at the point of their ipos. insta cart is profitable. importance keep in mind that just because it is a down round ipo does not mean it will be a good investment. thank you. we appreciate it. we will see how it goes. oil prices holding above $90 a barrel. how much longer until maybe we hit $100? >> the calls are growing more frequent as they continue to make new two-month highs. earlier today when asked about if we might see triple digit numbers -- told bloomberg he said it sure seems like it. we got ubs this morning saying basie at $90-$100. the next few months. part of that is interest from

financial investors. rents for future structure is now in steeper -- meaning that six months out prices are five dollars cheaper. for the first half of the year that was one dollar cheaper. there is interest to make money as those contracts roll. we also had cities atmore st. lucas see prices above $100. but he said that games this year probably means weaker prices next year. one area to continue to watch is heating oil futures. a proxy for diesel. those are down today but still up 30% in the last few months. diesel prices up $.23 in the last month while gasoline has stayed flat. in the ppi report last week we saw that diesel between july and august rose 41%. that is really something to watch going forward. airlines down again today. the higher jet fuel costs are eating into their profits. let's get over to kate for the cnbc news update. share of los angeles county

emotional as he announced an arrest in the deadly ambush of one of his deputies. this weekend. the sheriff said the 29-year old who ambushed deputy ryan -- at an intersection was arrested. he said tips from the community led to authorities arresting best suspect. in this case ryan's family will never see him again >> planned parenthood resumed offering abortion services in wisconsin today. they were halted for more than a year following the supreme court's overturning of roe v wade. because of the 1849 state law that providers feared could be enforced the band that procedure. judge ruled last month the 144 year-old measure does not apply to medical abortions. federal judge ordered starbucks to face a lawsuit claiming some of his strengths don't live up to their names. consumers complained some of the coffee giants refreshers actually don't have the fruits

they are named after is a main ingredient. starbucks tried to throughout the complaint saying no reasonable people would be confused and that paresis could have dispelled any confusion. back to you. know what you are drinking. we will speak to power play or steve case about the state of tech amid growing regulation and the birth of ai. we will be rit ckghba 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

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welcome back. by now we all know about the pros and cons of artificial intelligence. but concerns about the lack of ai regulation triggering a first of its kind closed-door summit with tech leaders on capitol hill last week. it's a way in on that in more and all things tech is power play or steve case. chairman and ceo of revolution and the cofounder of aol. welcome back to cnbc. also the author of arise the rise of the rest. which is now out in paperback

or is tomorrow. it comes out tuesday. welcome once again. we will get to ai and the meeting last week on capitol hill. one of the things that leaps out at me is that you see a direct connection between some of the divisiveness that we are experiencing in this country, the bitter bitter anger. and how technology jobs and technology capital is distributed regionally across the country. would you explain the connection between the two and why you see it so clearly? >> for the last decade about 75% of the venture capital backing these new companies these disruptive ideas have gone to just three states california new york and massachusetts. the other 47 states are fighting over the remaining 25%. venture capital is used to start these companies and create jobs

in those communities but most communities are not benefiting from new companies but sometimes are being hurt by the disruption of some of these new ideas. that is why we are trying to level the playing field and make sure everybody anywhere in the country has an idea the shot at building a company. the shot at the american dream. also creating jobs and hope and opportunities in those families. from those investors standpoint investment you can generate great returns by backing entrepreneurs in these places. that is what we are proving with our rice rest venture fund. >> how do you do that? i don't mean to say break up the concentration of wealth and may be of ideas. how do you do that and rather more democratize capital an opportunity and the funding for entrepreneurship is maximum we have been working on this for a decade.>> about 50 different cities. we have investments in 100 different cities. we built a network we have

coinvestment with over 400 regional venture firms. we built it over time really trying to establish this national network to support local entrepreneur hours in these different communities. we are seeing great examples popping up just in atlanta for example we backed the company -- doing a mock five engine that is getting a lot of attention. arkansas we back to company acreage trader that has a lot of momentum around a platform to invest in farmland. raleigh north carolina we backed a company called -- and ai company started by the founder is still technology to amazon to create alexa. he is focusing on ai for the enterprise. we see these companies all over the country. we are encouraging other venture capitalists who historically have focused on the coast. the pandemic has been helpful here. we've seen a dispersion of talent. people moving to different cities. in the beginning a dispersion of capital. we are making progress. the reason i rolled the book -- we want to tell the story of these companies and the cities

that are on the rise. i think hold the potential to help unite a divided country by creating more opportunity for more people in more places. that was before the troubles san francisco was going to run into. it seems like they have done quite well actually retaining both in san francisco silicon valley all of that kind of like the ai startup capital. i don't know if you are seeing that spread out throughout the country. i was going to ask at a time of the ipo markets are not so friendly does that affect potential funding for revolutions kind of target companies for the next generation? >> revolution we have a seed fun a venture fund and a growth fund. these operate differently. rice rest specifically because we are investing a different cities they never really benefited from the market move a couple years ago in valuations get higher. it is harder for entrepreneurs to raise capital. but the converse is when things corrected there was less every correction and these rise to rest cities. the other part in terms of ai it is worth noting ai has been around for decades. it is integrated in services we use every day.

some of the focus on chat gpt and generative ai has gotten attention. the san francisco area has let there are also seeing ai meet the real world. ai disrupt big industries healthcare and other industries like that. one company we back to chicago uses ai -- to diagnose cancer of the diseases. i think as you start seeing ai integrated with these other technologies embedded in trying to disrupt some of these big industries you will see more and more of those ai powered companies in the middle of the country in these rise and rest cities. elon musk who is prone to provocative statements last week called artificial intelligence a civilizational risk. do you see it that way and if you do or don't, why? >> i cai -- it has great power to improve things and fundamental ways. imagine how you can save lives

in cancer and a lot of different things it could do that could be positive for us in the world. at the same time there is no question there are risks just as there was to the internet. there is some benefits but also risk. even last week as he mentioned he was in washington dc the number of key tech executives including elon musk and others met with senate leaders to start talking about this. we need much more of that dialogue between the policymakers and the innovators. it is not like the early days of the wild west days with the innovators could do things willy-nilly. now we need to have that discussion and make sure we strike the right balance. including how we strike the right balance in terms of competition. there is a risk with ai that the big companies get bigger. the tech gets even bigger and it stifles the innovation that comes from young companies from startups. that is one of the issues we are focused on making sure that these ai platforms are open to allow competition. just as the phone networks were open for decades ago a lot of

companies like aol to compete. i see that the idea that the big companies have the money at the capital to get the data that powers ai. but i want to come back to that important modifier. he called it a civilizational risk. existential risk to mankind. i get that technologies have positives and negatives risks and potential benefits. do you see it as a civilizational existential risk? >> sometimes elon musk tends to go for the bold statement -- i have great respect for him as an innovator but he tends to be a little hyperbole particularly on his own platforms. i see the risk associated with ai i saw the risk associated with the internet. i saw the risk or heard about the risk associated with new technology such as agricultural technology 100 years ago at a time when 90% of us worked on farms.

now it is 2% because we use technology to grow more food at lower costs. which is a good thing for society. it did force us to retrain farmers to work in factories. we need to retrain eople to work in the companies of the future. the industries of the future. we need to also do it all across the country. this won't work for the country if it is only in places like silicon valley. it has to be all across the country supporting innovators who are creating jobs in those communities. >> steve case putting in the call for democratization. of opportunity. thank you so much. it is always good to have you with us. real estate whether it is homebuilding maintenance or outdated heating systems the whole thing has a massive carbon footprint. we will take a look at one company trying to reduce submissions from old-fashioned old oil based heating. clean start is next. save mon is? (dad) say hi to glen from work. (mom) yeah, i think i have a much better plan. we switch to myplan from verizon. (dad) that is a good plan. (vo) this week. new and current customers. get a free samsung galaxy s23.

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welcome back. real estate is one of the worst environmental offenders when it comes to carbon emissions. even worse than cars. older buildings filled with oil fueled a boiler system top the list of offenders. what is the solution? her continuing series on climate startups. >> i grew up in a prewar

building. i know what we are talking about. those systems most of the time the heat is way too hot in one room and cold in another. the race is on to electrify these buildings. that will take a lot of time and money. one startup is trying to reduce emissions from what is already there. >> the answer to old-fashioned dirty oil based heating is electricity and heat pumps. companies like block power radiant and run wise are working on that transformation but a brooklyn new york startup called calvin is working to improve and he carbonized the existing old systems. they invented the cozy. >> the cozy is used to get control over those old radiator systems. we are able to stop pizza from being released unnecessarily into those hot rooms and get it more efficiently to the cold rooms which increases the efficiency of the building. >> the cozy is basically smart

insulation around the radiator that improves the steam distribution around the building. it can push the heat more efficiently to cold rooms and also store heat in the enclosure on the boiler is officer you can use it later. as a result the boiler does not operate as much burning less fuel saving money and lowering carbon emissions. >> the cozies are controlled by the user with a simple interface that lets them set the temperature including scheduling. although systems are connected to the cloud to our databases which help determine what the building is doing in response to the individual need of each home. >> it has 10,000 cozies install today and expects to triple that by next year. fast growth that is attractive to investors like 2150. >> the most elegant solution we came across for those hard to decolonize old buildings. and yet bible business that can scale -->> addition to project financing calvin is backed by 2150 third sphere and -- total funding so far $36 million.

and the government's ira funding has been huge for kelvin. a tax credit is helping them offer lower income buildings of subscription model at no cost. that is something they would not afford otherwise. they are a big part of new york's local law 97 one of the prescriptive items in the law which requires owners of large buildings to reduce carbon emissions starting next year with the goal of a 40% reduction by 2030. a lot of homeowners are familiar with you have to do the scan for the old oil tank to see if you still have one of those. it seems like those are becoming pretty much obsolete. the apartment buildings this is really the next battleground it seems like. >> we've seen a lot of companies that we profiled here. one was called block power which was electrifying business. it is a huge task in new york city where prewar buildings are the moral norm. to get that oil transferred to electric is going to be topic you are reducing electric -- >> what is the financial impact?

>> i don't have to tell you guys how much oil prices are going up. that plays into your your utilities. they can reduce the cost by 25 to 40% of oil just by having -- >> thank you. good to have you in the house. was see you wednesday in washington? >> tuesday and wednesday new york city i will be here. why else would i be here? >> good to be with you. coming up looking for some technical support as it loses some ground. we will discuss that and other snacks th n experience, but to advance how the game is played. aaa relies on t-mobile's network to stay connected nationwide, so they can help get their members back on the road. and we're helping pano ai innovate, to stop the spread of wildfires. now's the time to see what america's largest 5g network

can do for your business. welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr. how's your father doing? to help reach your goals with confidence. my sister has told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. ♪ (captivating music) ♪ (♪♪) the first law of thermodynamics states that energy cannot be created or destroyed. (♪♪) but it can be passed on to the next generation. (♪♪)

>> welcome back to "power lunch," everybody. time for the geek squad for technical support to take a look at movers of the day and the year to see which ones offer opportunity. i'm welcoming jay woods here from freedom capital marks chief global strategist. good to see you. >> thanks for calling me a geek. first up is carvana, and we talked about this one before look at this it's up 1,000 percent this year. analysts at web bush think it has more room to run and they just upgraded it to neutral to underperform we talked about this last august

and one of the things i mentioned was the saucer bottom we see with the little cup when we talked about it last time it was retracing this area here and the gap up and it came back and it tested what? it tested the 52-day0-day moving average. the thing you have to watch is this level here, resistance. it got there once before it failed and pulled back. so this is constructive. >> do you know roughly what price? >> right now it's $44. before it was 36 it is moving up rather quickly this is in an area around 52 where i don't like the setup right here because it's more of a coin flip. will it come back to 44? if you're a believer in the stock? yeah, maybe this is a time to buy it on the dip and this is where technicians get a bad rap. it's up 52 and it is up six points and you're missing it and i want to be sure from a risk

reward point of view and we have until next november. >> wow >> november 3rd is when the earnings are coming out for the next catalyst and we have the wedbush upgrade and let's see what the catalyst would be and i would buy it on a pullback with the 50-day moving average and i would chase if it gaps above that area her. >> what a strange and unexpected year it has been for carvana. >> 1,000%, and let's move on to nvidia and down from the all-time highs in august and the stock up 200% this year. it's the stock of the day, the moment, the year what do you think happens here well, something's changed, all right? we want to see two things here and we had a nice gap here on the monster earnings report and this is very important to watch. this is earnings day it gapped up to 520 after hours and it opened at 502.10 and traded at 502 was the top and it closed on the low. as a technician that price

action is horrendous. >> okay. >> we had what we thought was another breakout to another level and it failed. what has it done ever since? it came back and re-tested its 50-day moving average and it also failed there. so what i'm looking for and i love nvidia over the long term and i think this is one of the stocks and you buy 2 and put it away and the a.i. story any this doesn't get any better and right now if you're looking for a pullback, there's 98 days until christmas and put it in someone's stocking lower >> would you be watching for the 200-day? >> let's not go to the 200 day that would be a problem because then you're filling this gap here at 375. what i'm looking back is a pullback to 403 and that was august 14th and that was its low. okay and then maybe digest and go sideways in this area and you have a nice, neutral trend and wait for the next earnings and that's not until thanksgiving time, so i think it's on pause right now and it's not the end of the story, but the sentiment did not follow price this time

the sentiment was great. >> exactly price led and price always leads. >> very interesting. and that brings us to kb homes they'll report later on wednesday. lennar had the beat on the top and bottom line and traded down after the results and what does kb look like to you? >> this is technician 101 line in the sand and you have what we call a neckline, a shoulder ahead and a shoulder so what happened we had strong volume here on the left shoulder. this is good and broke out the stock up 47% year to date and having a tremendous run and yeah mortgage rates continue to be very high and we had precedence and you had lennar last week and they had their earnings out. they traded lower and they broke down to the 2 hun-day moving average and right now with this setup given how the stocks have acted in the sector and given the run and given the setup, i see technically, i think this 47 1/2 and 48 level while it held so far today and friday

rallied from there, despite earnings it could break down and then, you know, head and shoulders top, you have an easy calculation and then you add that seven points and you subtract it from the neckline and 2 hun-day moving average, 242 and that's a safe assessment on the pullback and maybe a better entry point if you still believe in the long term >> fascinating a couple of stocks that have had a change, both nvidia, kb and maybe lennar, as well. thank you very much. we appreciate it today. >> we have neck line, we have heads, shoulders and saucer bottoms here in this segment we give it to you every day right here on "power lunch." coming uhep, t latest on a major hack in clorox in "closing time" next

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welcome back to the stories you need to know the latest company to be hack side clorox. eamon javers joins us now from washington with more hi, eamon. >> hi there, tyler clorox is trying to clean up its i.t. systems it was victim of a cyber attack on august 14th, but today it's saying that the financial impact of that attack will likely be material to its quarterly results and it damaged portions of the i.t. infrastructure that led to a lower rate of order processing and an elevated level of product outages

clorox says it can't tell yet if the impact will be materiel to its annual performance, as well. the company believes it has contained the attack and is tranci transitioning to normal processing on january 25th and the company can't say exactly how long it's going to take to get everything back to normal. the company also didn't offer any insight into who the hackers are, whether they have demanded a ransom or whether the company has negotiated or paid any money in access to the systems and this disclosure comes on the heels of the hacks of mgm resorts and nentertainment and not clear if scattered spider is at play here in the clorox attack no indication of who carried this off >> very quickly, 30 seconds left this didn't affect financial or hr this affect production. >> operations. their ability to put product on shelves and that's why it could

be material to their quarterly results, but they say they do have everything up and running and i asked them for an update on the investigation and they said the investigation is ongoing and brought in outside consultants. >> eamon, thank you very much for following the story on clorox we appreciate it and we appreciate you for joining us on "power lunch." "closing bell" starts right now. kelly, thanks so much. welcome to "closing bell." i'm scott wapner from post 9 at the new york stock exchange. this houri begins with mega-caps moment and likely to decide the overall market and which way it goes in the week ahead it comes as the nasdaq is on its worst month since last december. it was getting a lift today as we begin the final hour and it is now in the red. let me show you the scorecard with 60 minutes to go in regulation apple helping the markets across the board. that stock looking to reverse its recent slide tech was the best sector of the day, no