welcome to "power lunch." coming up stocks are higher. hice of the day after initially falling to start the week after hamas attacks israel and israel declares war in response. we'll get the latest news on this conflict and look at the many ways this is affecting the world and the markets. and let's check in on the markets because we've seen a major midday reversal as you can see all major averages are trading higher with the s&p and dow up half a percent each and

nasz d nasdaq up as well. oil is up 4%. and we want to look at the defense stocks because those are leading industrials higher. moves are huge. as you can see, major moves across the sector as we 1k3ek9s to expect to see more demand for the defense products and against dollars now both in the u.s. an broad. and also look being at companies based in israel, because those are mostly lower today as you can see on this board as well. >> and let's begin with a bit more now on the human impact of this war. josh letterman is in london for us with all of the latest. >> reporter: the death toll among israelis has climbed to at least 800 according to officials including those nine american citizens that the united states confirmed earlier today were

among those that had been killed. and on the palestinian side, gaza health shorauthorities are saying at least 560 have been killed and 2900 injured. and throughout the day we've seen israeli military con kductg strike within the gaza strip. and we heard from the militant wing of hamas responding to the israeli strikes and they say from now on, every time israel strikes a home in gaza without warning, hamas is going to kill one of the israeli hostages that it has taken. so a warning for israel not to conduct any strikes in gaza without warning or they will kill one of the american hostages. and we are also awaiting a speech any moment from benjamin netanyahu that is spektded to layout a bit more about how

israel is going to respond. we have not yet seen a ground incursion into the gaza strip which is widely anticipated. earlier today defense minister of israel saying that they are conducting a full siege of the gaza strip meaning no food, no water, no electricity going into that strip. he says they are fighting against human animals and they will behave as such. >> josh, thank you very much. >> the war is having a mihuge impact on oil. >> yeah, up 4%. and important to note that neither israel or palestine is a major producer of oil. so we're not going to see any type of short term supply disruption. however the risk here is that there is escalation in the middle east and especially when it comes to iran. now, iran has increased its about ports by about half a million -- 500,000 barrels per day over the last year and the

u.s. has largely turned a blind eye as they brought more oil back to the market. a lot of that is going to china. however if rafrn is seen to be involved in the attacks over the weekend, which is not yet confirmed, then it becomes difficult for the u.s. to turn a blind eye. and there is a straight of m ho hormuz. and the risk is that if it escalates and we see more fighting, it could disrupt oil supplies. >> how much iranian oil is reaching the market today? it is still under sanction, but that is not to say that it does not get out and get to people who are willing to trade for it. >> yes, they produce about 3.2 million barrels per day and about 2 million of that is escorted primarily to china. but the markets are very global. so even if that is sanctioned, the u.s. will still see our prices increase because then if it is not going to china x china will be buying from somewhere

else and reduces global supply. so this is a global threat that then if the u.s. does come down harder on iranian export, then oil prices could rise to the tune of more than $10. >> and of course we know supplies arguably already tight. we'll also bring in for more reaction kevin book, managing director of research at clear view energy partners. is the bottom in now for oil? >> well, i think that it would be a bad time to assume that prices will keep falling when you have a war breaking out in the middle east. generically that tends to be bullish. >> so we were talking about it with pippa, but the role that iran may or may not be playing in all of this, the fact that we had seen this potential normalization of relations between israel and saudi arabia, there is an expectation perhaps that sawedky was going to reverse some of its cuts in the oil market as well. game out for me how this could play from a supply side when we

know that demand at least right now currently is there. >> at least three different ways. the possibility that normalization could bring a saudi leniency answering the call when washington rang for more supply. but more imminently the alleged discretionary enforcement of sanctions on iran seems like it will be a lot harder. the white house losing political space for that even in the wake of tangential involvement of iran. and of course this could include the pressure that we bring on iran if we do bring pressure that plays out in the form of attacks on regional transportation and production. so as pippa mentioned, the strait but also producing facilities other tanker traffic in the region. and third, the high end escalation risks. attacks on iran itself, attacks on producing sovereigns. >> and we'll talk more about

that with the next guest, but let me ask you this, back in 1973 during the i don'yom kippu that became the time when oil embargoes and oil production freezes affected the world. is there a possibility that we could relive that moment in time or is the market so dynamically different today than it was then that that is not the risk it was then? >> the market is still susceptible to all kinds things so we shouldn't be complacent. history has changed a little bit. abraham accords have partially aligned. and there are questions yes about how the arab treats reits. and that to brings back some historic questions. but the other side of that too, i think when we look at the market, we also have producers

who are funding big transition and domestic funding programs at home. probably looking at interoperability with the west, security guarantees. a lot of other issues here besides just talking about oil. >> and that is where i want to turn with you, pippa, and that is the role that domestic players play on the global stage. unlike the 1970s, we're an exporter now when it comes to some of these resources. so any sort of sense of how this could play out with u.s. production maybe even potentially being able to step in and fill the void if we see prices higher for longer? >> for many years we were the swing producer after the shale boom, but alot has shifted over to saudi arabia and they are really the ones that can fill the gap these days because when it comes to u.s. production even if prices do go higher enough to incentivize companies to start pumping again, shareholders don't want it so that ties the hands particularly of the major publicly traded companies. there is of course the question

of the private names and whether they bring back production, but i think we've seen saudi arabia's influence in the global market has grown so perhaps the u.s. can't boost production the way maybe once it could. >> so is $100 oil back in play here? earlier it was noted had we saw $100 in august when russia attacked. and it was $100 for the third time in february of 2022 when russia attacked ukraine. and so is there a pattern here or is there a reason to not believe that we don't get triple digits? >> gdemand could be ahead of supply. and so that could take us upwards rather than gown wards. and of course $100 is it a different number depending on which $100 and which dollar you are using. inflation being a factor.

but psychologically very important. >> kevin, pip apa, thank you. as the conflict enters its third day, president biden vows unwavering support to israel sending an aircraft carrier and military aid into the area. our next guest knows the region very well. he lived in israel, served in the defense forces and now a senior fellow at the atlantic council. mr. cohen, good to have you with us. we just heard from josh letterman in london of nbc news that hamasb brigades have claimd that for every house that israel hits in the gaza area, a hostage will be killed. now apparently they have american hostages. how does that change the calculus on what israel can do and how? >> i just talked to a senior

officer in the israeli -- what they call the homeland front, the civil defense system. and also touched base with some friends and family. the morale is high. the decision to shift the battlefield in gaza is there. and i am afraid, and it is a harsh thing to say, that israel is going to fight hamas and gaza probably not taking into account the future of these hostages after horrible mayhem that went on saturday when up to 1,000 israelis were murdered including parents being killed in front of their children, including old people, as old as 80 and 85 in

wheelchairs, killed or taken to gaza as hostages. this is an atrocity that we do not remember since the holocaust. and i'm not saying it lightly. >> so even the murder of hostages will not stall or stop in your view the israeli defense force from going after hamas in the gaza strip? >> i'm not privy to any co confidential war machines or information, but i do below freezing that the israeli forces don't want to lose the lives of orderiers unnecessarily. enough lives were lost already. so they will soften the targets in gaza. the hamas targets. they are not going after the civilian population like hamas did. but at the same time, israel is watching like a hawk northern

bore exercise with lebanon and that is actually the bigger problem for israel than gaz. because hezbollah fully owned subsidiary over lan launched in southern lebanon has over 100,000 missiles and rockets with longer range and bigger warheads than what hamas has. >> if that -- may i interrupt for a second. if that does come into play, in other words, if there is a two front assault on israel with hezbollah in the north and hamas and its affiliates in the south, does that make it all but certain that israel will not merely be attacking in gaza but will have to attack iran directly? >> well, this is $150 barrel

question, isn't it. because if hezbollah opens with all its arsenal, which is massive, and hits the big port city to the north with its refinery, hits tel aviv and other cities in the center of israel with longer range missiles that they have, tries to hit the air bases, then tehran is in play. iranian top leadership including the ayatollah are in play. as head of the israeli foreign intelligence agency mentioned a couple weeks ago. and i would add the oil terminal in the persian gulf. for retaliation, iran may mine the straits of hormuz further driving the oil prices up and disrupting the global energy

supply chain. but this is a war that iran has initiated. we saw a detailed publication in the "wall street journal" the other day where it said that the series of meetings in beirut with hamas islamic jihad, hezbollah and others were undertaken to prepare this war. >> and so it sounds like as you lay this out, sounds like the risk is not only very real, but growing that this becomes a larger conflict through the region. >> yes, and if you think about this globalism, trying to do -- russia is interested in taking american attention off ukraine. china is interested in taking american attention off taiwan. they have a partner. iran. and they have another partner, north korea. so these four actors in the international system are playing against the u.s. and our allies. in europe, in the middle east,

and in asia. and this i see as another theater opening to deposit tract america but also in case the united states is going to spend its ammo in europe or the middle east, there is less ammo, less material for asia. and i think the lessons are that we do not have the sufficient militant industrial potential as strange takes may sound to sustain large scale theater wars in the middle east and you're rop as well as asia. >> that is a key point that you are making. something that analysts have been talking about. bank of america included it in their note that the u.s. has a strategic stockpile of u.s. weapons housed in israel. what is unclear is how large that stockpile is and how much it has been drawn down to your

point to bring munitions to and support to ukraine and how quickly u.s. defense contractors can ramp up production to replenish all of those stockpiles. my question to you then is if this becomes a broader conflict in the region, is there a point at which the u.s. becomes directly involved? >> yes. i was thinking about this before this broadcast. and if israel feels that its very existence is at stake, it doesn't feel that now, it is horrified as i said, probably close to 1,000 israelis were murdered in cold blood in their homes including children. women were raped. maybe not even women. but the sur strifl of israel is not at stake. if hezbollah burns down large israeli cities like tel aviv, my guess is that israeli government has a baseline beyond which it

may consider unconventional responses. nuclear. against iran. then either we step in or we let israelis escalate it all the way to unconventional. >> you raise a very interesting point there. let me follow if i might very quickly. hezbollah is clearly owned by iran. i believe that was the term you used earlier today. iran must understand, they must understand that if hezbollah -- and they would require iran's approval do the attacks that you describe as the transformative moment. and so what are the odds that iran gives them that authority

to do that kind of attack knowing that in your view that would unleash potentially what you describe as unconventional war, possibly vochling nuclear devices, on iran itself? >> look, iran is ruled by a man who i believe -- i don't remember the exact number -- is 83 or 84 years old and ailing. we're getting into theology here. but there is a branch of shia islam that believes that believers have to bring the apocalypse by their action. as horrible as it sounds. they need to speed up the coming of their version of messiah.

and i do believe that some of the iranian leaders, maybe not all of them, belong to that sect. there is a different and very serious confrontation between the sunni islam as represented by saudi arabia for example and the iranians who are fighting all over the middle east. it is not just israel and lebanon. it is yemen, it is iraq, it is syria. the iranian is all the way from the red sea to the mediterranean from yemen to lebanon. and in that context, iranians must understand and we need to make it very clear that the survival of their regime is at stake here. >> ariel, thank you so much. a fascinating conversation. we hope that you will join us again as these events unfolds. thank you very much. and coming up, how do invest in the treacherous times. is it time to play it safe? we'll get technical support on some defensive names and we'll

kick off five star funding manager week ahead of the financials focus fund.

welcome back. stocks are higher today. today is one year since we hit a bottom. well, this week is. the dow up 14% since then. let's bring in mike santoli. >> yeah, thursday the closing low anniversary from the october

'22 bottom. and i don't get too caught up in the labeling of markets, but this is the first year of a bull market, it has been rely i have itly unimpressive one. up about 20% plus for the s&p 500. but the equal weighted version of that same index up only around let's say 9.5%. big gap there, it is that narrowness of the market in favor of mega caps we've been talking about for a long time. and i think that it is one of the reasons that investors are keeping the market on a bit of a shorter leash. the perception that maybe expansion is in the latter stages. whether true or not that is the psychology out there. i guess where it leaves us, a lot of stocks having already discounted not so great economic times especially a lot of the consumer cyclicals and earnings estimate 12 months forward from here have finally regained their eyes from the mid of 2022. and so it may not have been a real impressive first year, an underachieving bull if that is what it is, but it is has taken at least some of the fundamental

risks out of stocks relative to that time. >> thank you very much, mike santoli. and now for more on the market and impact of world events, let's bring in jack ablen pergood to have you with us. does this sort of turn of events over the weekend change how you look at portfolios that you manage in any material way, are you doing anything today in response? >> no, it really has not changed the way we look at things. we'll continue to watch. and i think there is a general sense among the investment community that all of the warring activity will likely stay in and around israel and the gaza strip area. in on the other hand it does

spill over let's say into iran, or other parts of middle east, there will be a recalculation. >> so when bonds reopen tomorrow, how key is that to the true impact of geopolitical risk on the markets? >> what i can glean if you just look at tlt trading, it would suggest that the interest rates are headed lower which i would specific in this kind of environment would be the case. that is obviously an offset to the higher crude oil prices. and likely helping give equities a bit of a bid today. >> so we just heard mike is an toll li talk about the market bottom a year ago this week. do you see this as an underachieving bull market is? >> i do. in fact it is funny, i'm glad that mike talked about the difference between the cap

weighted s&p and the equal weighted s&p. because the fact is that if you look if he cap weighted s&p, it really is extended. it is about between 12% and vale basis. but if you look at the average stock in the s&p, the equal weighted s&p, the forward pe multiple is really right on target. so i think the average stock is in good shape, but the very top stocks that are really pushing those metrics higher are some when vulnerable. >> so do i hear you that you would recommend an equal weighted index fund as opposed to a cap weighted index fund? >> yes, in many respects yes.

the only problem, you are giving up a lot of exposure. tech is not a bad place to be but there are a hand full of names that are somewhat your valued and that could make that s&p trade a little more vulnerable. what we're doing at crescent, we built sma based on dividend growers. so we still have tech k3exposur but we're looking at companies with the highest multiple of coverage. >> and so you have named three that you wanted to highlight. we're out of time, jack, good to see you. >> thank you. further ahead, nelson peltz looking to dance with disney.

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bond market is closed but we're getting a sense of where things will go tomorrow. let's go to rick is an felony in chicago. we have another big week of issuance, right? >> yes, it is not only the issuance, of course we'll start tomorrow with three years, ten year and 30 year. an important trio of supply. but even though the markets are closed today for columbus day, treasury market cash that is, as jack just pointed out, many are watching the tlt and i'm watching the futures contracts. so here is a two day of the two year note futures and you can see they have been higher than yesterday. and if we go toward the ten year, you can see ten year futures also higher on the day. and what we know is the futures give us price, cash market gives us yield. so they should be mere image opposite. so let's look at a week and a half of the ten year future on top of ten year cash even though it is closed today and you will see what i mean. and the reason why i put that chart up is to give you an idea that i could look at futures and

tell you roughly where the car market would be. does that mean that it will be there tomorrow? probably 50/50 chance. right now i see roughly around 5% yield in two year and roughly a 6% in ten. and so the relationship between cash and futures is fluid. so these are guesses but it they are good guesses and they give us an idea that rates will be lower and prices higher. a for the gdollar index, it is trending lower. and it continues to trend slightly lower. you can't tell anything different from that chart. and gold did pop. it always seems to pop, but it is not necessarily a great divider of what happens on a geopolitical issue. and i'll give you a personal example. in 1980 when the iraq/rafriran started, gold peeked for a bit, but then went down for years.

it didn't represent a holding period for some of the geopolitical issues even though on the knee jerk reaction you always see a pop in the gold contract. back to you. >> rick, thank you very much. and ahead, five days, five fund manager, five stars. and after the break, the first installment of the fe arivst fund week. we'll be right back.

welcome back. as global risks rise, we kick off a special series this week looking at 5 star morning star rated funds to help you navigate during the difficult times. we'll zero in on a different sector each day. first up is focus on financials as banks get ready to report third quarter results starting friday. ian is joining us. and the fund is up this year. so we'll take it. congratulations. >> thanks for having me on. >> are you by charter restricted or guided to invest in mid and smaller size banks or could you

if you wanted to invest in the grand dwaddyes? >> it is all cap. and global. so i also -- >> and yet your biggest holdings typically are smaller banks. >> well, citi is in my top five. but first citizens is my largest holding, that is about a $20 billion market cap. it really is a mix. i tryer to find undervalued securities. >> and that is up something like 79% this year. when did you get in and why do you like it so much? >> i was a shareholder of cit and first citizens bought cit at sort of the depth of the pandemic and they paid only 40% of tangible book. i was very upset obviously with that price. but upon doing more research on first citizens, realized that i would be getting a better management team. so i elected to hold. so i've been a shareholder now for a few years.

>> and you put an emphasis on management teams that act like actual owners like they run the businesslike they own the business, not like they are higher folks too come in and just manage it. how do you identify that quality? >> well, you are absolutely right. and i've been doing this for 26 years and the more i do it, the more i realize management is ultimately in the outcome. i'm a long term investor. i look at a lot of track record. so in the case of first citizens for example, since trowel 8, tangible book value per share has grown at 17% a year. which is phenomenal compared to really any other bank. and then also insider ownership. you want management teams -- i think that they tend to be much more focused on risk if they have significant skin in the game. so again, first citizens own 13% of the economic ownership which

is about 2.5 billion. so clearly they have skin in the game and they won't do stupid things. >> and the kre has been slammed. down almost 30 3rs% year to dat. we've seen longer gur race bonds spike. seeing unrealized losses i imagine there is baby out with the bath water. >> i think that unfortunately in the u.s. a lot of banks during the pandemic reached for yield. they bought agency mortgage backed securities to try to get a little bit better net interest margin than if they had just kept it in cash. and now they are sitting there with securities that are significantly under water and likely to be even more when they report earnings starting friday. so i've been very cognizant of this adjusting the capital

ratios for the unrealized losses, whether banks are including them in available for sale as they should be or holding them to maturity which is debatable. so to your question, there is a lot of value. almost all bank stocks are down this year. not all banks are poorly managed or undercapitalized. so i'm looking for ones that are strongly financed and undervalued. so one of my top holdings and even knows is citigroup, it really is the -- it has been the case of the shrinking multiple. if you go back to the end of 2019, they had a think takable book of 70, that has grown to 85 now even after paying $7 in dividends.angible book of 70, that has grown to 85 now even after paying $7 in dividends. their capital position has actually increased over that period. so about 50% of tangible book. and i think that it is a great

value. >> all right. congratulations on the good record. we hope that you will join us again soon. >> my pleasure. thank you. up next, if at first you don't succeed try and try again. nelson peltz potentially reigniting a procesxy fight wit disney.

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activist investor nelson peltz and his firm are reigniting a potential proxy war with disney less than a year afterof a dropping the initial battle. >> that's right, and so nelson peltz trian now has more than 30 million shares. and reportedly plans to push for multiple board seats according to sources familiar with the situation. and this comes after disney shares just last week hit their lowest level since 2014. also comes after trian launched a proxy fight against disney back in january criticizing the acquisition of fox and failed succession planning. nelson pelt drz dropped the bat

after bob iger unveiled meaningful job cuts. so other than a board seat, what will peltz push for? he said that iger need execute on his promises. since then iger has done the job cuts and also announced had he is looking to take espn direct to consumer and he is exploring selling the company's linear networks. he also reportedly that they are looking at options for the company's struggling india business and espn made a big move into gaming. and disney last month announced that it is doubling its investment in its parks division. disney says it that not no comment on this news and we are waiting for an additional announcement from trian. >> and is this is incredible to. the proxy fight ended on our air on the heels of that iger interview. but the stock to your point has been an underperformer. it is down 2%, 2.5% since the start of the year.

13% the last 12 months. what will it take from a market perspective to see if shares of disney get reignited here in the market? do we know yet? >> i think that there are two things at play here. what will it take to make nelson peltz satisfied that iger is following through on his pro promises. and you think iger has done everything that he said that he would go and also all of these other things to unlock value at the company. the one piece that has not been fully revealed is the succession piece because we know iger has extended his term at the company. so the question is who would succeed him. and that is something that nelson peltz was concerned about. in terms of the share price and market cap in general, i think there are so many different pressures that are at play here and one is the fact that we have to remember that there was a writers strike that rely shut down hollywood for months. you have all the questions about the future of hulu, disney and

comcast are in negotiations about how much disney will have to pay to buy out the stake in hulu. so still a lot of questions looming over the company. >> okay. we'll watch and see if there is an announcement. julia, thank you. coming up, growing uncertainty in the markets and around the globe. should investors be avoiding any risks and going all defensive with their portfolios? we'll get some technical support next. that time to reflect. to be like wow... what did i do to get here? (city ambient noise) right. work. you worked hard and it's time for a bank that'll work hard for you. everbank brings security and a guarantee. that you'll earn a yield in the top 5% of competitive accounts. going, got you where you want to be. we're the partners for your next move. everbank. advantage, you your record label is taking off. but so is your sound engineer. you need to hire. i need indeed.

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welcome back. we're looking at defensive stocks at a time we have conflict in the middle east. we ran a screener for defensive plays for a volatile market, steady stocks with low debt, dividend payers that are higher this year. ari wall is managing director and head of technical analyst at oppenheimer. first is coterra industry. what's your take? >> to be honest, we don't want defensive. we want to step into risk on this. i think the market will go higher. from the screen -- what they have in common is price. we want to side on more of the

cyclical stocks like this. cyclical value over defensive value. the key with this chart, a great q3 trade energy, not a super cycle in energy, but it's working. a lot of these stocks broke out in the third quarter, came back, tested the breakout. you have the base, the test of the base turning up from support in the 200-day average. i think that's a resumption in this stock. >> cyclical defensive -- >> cyclical value -- >> there we go. so, we have cme group, a stock that is on track for its best five-day stretch since march of 2022. what's your take on this? >> another area. you can own pockets of energy, of financials. security exchanges showing relative strength starting in cboe. now we're seeing it in cme group. it's another one that reversed its base. a lot of stocks coming out of bear markets in 2022, they broke

higher. here's a stock that's been flat through the last two months and now breaking through this consolidation pattern. fresh highs in this tape. that's an indication of relative strength. i think that longer-term turnaround continues for this. >> we go back to the whole business of trading commodities, as well. is there any kind of tailwind from that from the point you made earlier? >> there could be because it's not a one-off. you're seeing it across the board, cboe at a five year high, intercontinental, exchanges getting close on the 200-day. we like a broadening theme. >> lastly, you picked -- i mean you brought to us zscaler. what do you like about this chart? >> this is what we're recommending on this pullback. high beta, long duration, high momentum technology stocks. through this rate rise since the september 2020 meeting, it's

been the best performing sector. you get in zscaler, the cybersecurity etf, a breakout across the board there. 18-month downtrend, reversed in june. four months of sideways. fresh breakout to the upside. we're seeing that long-term turnaround play out here. broadening rotation in the ek technology sector. it hits a lot of the check boxes we're looking for. >> so why are we seeing broadening rotation in the tech sector when we have the 10-year hovering near 16-year highs? >> that's a great point. this is the big difference from the rate rise now and the rate rise going into 2022. this time around, it's high-dividend, low-volatility defenses on the market. bond prices down. bond-like sectors underperforming, while long-duration technology is

showing relative strength. mr. signal is telling you something. when you see that relative strength, to me, something is going on across the board. that's a sector we want to be involved with. >> ari, thank you for taking us through the technicals. more on the markets and israel and the changing in geopolitical landscape when we return. personalized financial advice from ameriprise can do more than help you reach your goals. i can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about.

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(all) ♪ toooo youuuuu! ♪ (sean) i wish for the amazing new iphone 15 pro! (jason) sean! do you mean this one - the one with titanium? (sean) no way i can trade this busted up thing for one. (jason) maybe stealing wishes from the birthday boy is not your best plan -- switch to verizon and trade in any iphone and get the new iphone 15 pro on them. (sean) what!? (jason) yup, and on an amazing network (sean) and i don't have to ruin anymore birthday parties! (jason) yeah, that ship has sailed... let's go get you the iphone. here we go, come on hon. (vo) it's your last chance to trade in any iphone for a new iphone 15 pro on us. only on verizon. welcome back to "power lunch." stocks at session highs.

the to dow is up 218 points right now. the s&p is at 4,341. it's been a very volatile day to start the week, tyler, and quite the rally here into the afternoon. >> i'm a little tired. you follow the defense stocks. >> yep. >> several of them are up with gains the likes of which we just don't see in that sector very often at all. >> that's right. energy is leading the sectors in the s&p and number two is industrials. that's because of those defense names. the more pure-play defense names like lockheed martin, northrop grumman, general dynamics. you're seeing big moves in aerospace and defense today, perhaps unsurprisingly given the events in israel right now, what that is going to mean not only for demand for more munitions and more weapons in a fraught geopolitical landscape but also what it means in the u.s. we have the whole speaker situation in the house right now. what this means in terms of

potentially rallying support for more defense spending in the fiscal 2024 budget and getting that appropriations across the line. >> and you had a line of questioning earlier this hour with one of our guests about oil. you went back and looked at other moments in history where we went past $100 in oil price. many of those were tied to the kinds of crises that we're seeing right now in gaza. >> yes. that's right. geopolitics, the oil market, is typically raised through this playout, whether it's long or short term. that's what we're seeing happen. it's not just oil. nat gas is trading at its highest level since january. part of the reason is what we're seeing in the middle east. there are other factors. we had bill perkins on in "closing bell." he'll break down the energy sector. former defense second toir mark

esper and what this means for geopolitical risk. >> ask mark esper -- last night "60 minutes" interviewed general milley, who said if we allowed putin to win, defense spending in the u.s. will double at least as a result of that. interesting question. thanks for watching "power lunch." >> "closing bell" starts right now. >> i'm scott wapner at the new york stock exchange. this hour begins with markets on edge as acritical week gets under way. clearly, the events in the middle east have introduced a new level of risk for investors, but markets are strengthening as we move into this final hour. look at your scorecard with 60 minutes to go in regulation. at the highs of the day across the board. that's despite those geopolitical concerns. even the nasdaq, which was the big loser earlier, has turned around. it's good for 0.5%. everything is in the green, that ah