around for 13 years. but the scarcity of it, i think it goes higher. >> joey s y t.? >> hard to find a stock up, but adobe is one of them. >> "the exchange" is now. ♪ ♪ thank you very much. welcome to "the exchange." i'm kelly evans. ahead this hour, the house divided. the second vote for a house speaker seems to fail, with jim jordan unlikely to secure enough votes once again. a top republican strategist tells us how this should be resolved. and joe biden visiting israel today, pledging an unprecedented support package for the country, even as congress is without a leader. we'll have all the latest. plus, have you seen what's happening with bond yields? it's a major headache for banks, and the ceo of hancock whitney

said that the historic move is pressuring commercial loan demand. let's get a check on the markets, which continue to move lower, the dow down 278 points, nearly 1%. a greater decline for the s&p 500. and the nasdaq down 1.3%, similar for the russell 2000. and here in some ways, here is the big culprit. treasury yields keep moving higher, and it's across the board. yesterday, the two-year popped up to its highest level since 2006. 5-2-16 is the latest. the five-year joining that at a level we haven't seen since 2007. 493 let's call it. the ten-year pierced above 4.90 today. and the 30-year beyond is above 5%. we'll have the auction and results momentarily.

so we'll see if that does anything to relieve or exacerbate the pressure on bonds. today, both crude and gold are higher. oil up 1.5%. and gold touching its highest level in nearly a month. and want to mention shares of morgan stanley, one of the worst performers on the s&p today, dropping about 8% on lower investment banking revenues, morgan's worst post earnings drop since april of 2009. but let's start in congress. the house going on 15 days without a speaker, even as joe biden is promising major aid to israel. emily wilkins is on capitol hill. what's the latest? >> reporter: the house has just finished its second vote for speaker. and once again, jim jordan has come up short of the 217 votes he will need. this time 22 republicans, two more than last time, voted against jordan. and you saw a number of lawmakers flip their votes. you saw at least four who voted

for jordan before not vote for jordan this time. but you saw two who didn't vote for jordan come back and vote for him. now republicans will have to figure out what is next? do they go to another speaker vote, take other courses of action that don't involve jordan as the nominee? republicans are going to be meeting after this vote, trying to figure out the next path forward. something that seems to be gaining a lot of momentum is getting patrick mchenry, the acting speaker, the power to pass legislation. so think of that aid to israel, that $100 billion we are expecting from the white house. and we are a month away from another shutdown. so there's thought if he could give hem temporary power to pass those bills, republicans could use that time to figure out a longer term path forward. but at this point, it's just not clear whether we're going to see 16, 17, or 18 days without a speaker. it's not 100% sure what's going to happen. i feel like we said this so

much, but it is unprecedented and unchartered territory. >> 22 versus 20 yesterday. not a huge increase, but an increase nonetheless. what are the next chess moves here? let's bring in sarah fagan, republican strategist and nbc news contributor and former white house political director under president george bush. sarah, welcome. >> hi, kelly. >> do they just empower mchenry at this point? if they tried to elect him, it just seems unlikely it can get done. >> well, this is an interesting consensus figure, well respected by all factions of the republican party, including former president trump, which is not an insignificant person in this process. but i think the smarter strategy for congressman mchenry is to sort of ascend into his role as this, you know, this consensus choice, even if some of the

power of the speakership is limited. because the reality is, this is likely -- and i think this is what is happening for most members of congress. they're looking at running for this saying this is maybe a six-week job. when i have to push the conference to raise the debt ceiling, and remember, i'm likely to have the same fate as the previous speaker. and who wants to sign up for that? so this potentially is an interesting solution that sort of gets the government what it needs but has a leader in place. >> what are the further implications? we mentioned that joe biden is in israel and promised aid. but to do so, congress has to approve it. it sounds like the aid package under consideration could be $100 billion in size, covering israel, ukraine, and taiwan. >> yeah. i mean, look, this is not a good look for the united states. as the world is having so many challenges, we don't have a functioning legislative branch right now. so something does need to get

done. congressman mchenry is among the most gifted legislators that exist in the congress, so it's actually an excellent choice for the government. and for the republican party. so i have a lot of confidence in his abilities. we're just not in a good place as a party, in the country where there is so much division. you've got ahandful of members that, you know, really have the ability to sort of stop progress and that's very frustrating. and it's happening to republicans now. i suspect leader jefferies, you know, is looking over his shoulder wondering what it would be like if he became speaker in two to four years. he's likely to face the same challenges. >> and the market tone has improved a little bit, but are rising bond yields tied to the lack of leadership in congress,

where in chris christie, i don't know if you caught his interview earlier. it was really interesting, but he talked about the need to get leadership in washington that can push for improvement on the fiscal front. that seems like the bottom of the barrel right now. my understanding is the kind of deals people want even to keep these speaker pro-tems in place, a lot of them would increase the amount of spending or at least not decrease it. so that seems like it would be hurting here. >> look, the most important factor here is uncertainty. markets don't like uncertainty. people don't like uncertainty. other countries, when they see uncertainty, potentially strike. and i don't doubt that our distinction in washington is having an impact globally, as well, relative to people's actions. insurgents, terrorists, remnants of the communist, you know, russia. that all is having an impact and having an impact on the markets, too. so uncertainty most important.

but yes, at the end of the day, the country does need to figure out how to balance its priorities, which is going to include aid to israel, but how to also get its fiscal house in order. that is a very tall proposition, given the current makeup of the congress. but both parties need to elect leaders that can do this. >> a tremendous challenge that will shape the election. sarah, thank you. appreciate your time this afternoon. >> thank you. now to the latest from joe biden's trip to israel. he met with the prime minister of israel, benjamin netanyahu, and his cabinet and pledged his unwavering support as tensions escalate, including $100 million for humanitarian assistance in gaza and the west bank. here to react is aerial cohen.

it's great to have you here today. your reaction to the events that have taken place from joe biden's trip and the meeting with arab leaders that didn't happen? >> well, the failure of the arab leaders to meet with joe biden is the ultimate evidence of how weak they are, how ungrateful they are, ingrate, because board jordan, the palestinian authority, and egypt are beneficiaries of massive american assistance. at the same time, how iran, hamas, palestinians, islamic jihad and hezbollah not only are expanding iran's dominance in the middle east, but also are doing dirty work for russia and china, pushing america out, attacking america's allies, and egypt and jordan may be next, as

can be saudi arabia. >> so you head it as u.s. weakness that we couldn't get this meeting with arab leaders to happen. why is that? >> because the leaders are afraid of their own people, they're afraid of the street. yesterday, before the blood was cleaned from the streets, hamas and its propagandists in the middle east and around the world, including in this country, including in the western media, ran and put a blunt label on israel, on the jews, they said they did it, they spilled the blood. they lied about the numbers. the gaza minister of health is, in fact, a propaganda arm of hamas, as well as ministry of health. so the propaganda attack on the united states and israel was massive and only now they're trying to walk it back and

retract it. but the damage was done. biden didn't get the meeting, and this is on these arab leaders. >> of course, things will only get more difficult as this ground offensive begins. why do you think it's taken so long, and what would you be watching on the iranian front? >> excellent questions. on the iranian front, hezbollah is ready. hezbollah is the fully owned subsidiary of the islamic republic, the revolutionary guard corps, up to 150,000 rockets that are bigger, nastier, and have a longer range. and on the ground offensive, israel needs to move fast. israel has maybe, maybe a two-week window to move against hamas leadership, against hamas assets in gaza. and those who support hamas

elsewhere in the middle east. the chances of the war to broaden is something mr. biden is trying to avoid, because if iran is involved, if iranian oil infrastructure gets hit, the oil prices will go up. i've seen numbers of $150 a barrel. i predict even possibly more than that. and then, of course, added fuel for inflation. added fuel for renewal or reduction of our gdp in the presidential election year. >> as you said, a two-week window would feed into the urgency of this situation for now. thank you. we'll check back in soon. >> thank you so much. how are americans viewing the administration's foreign policy moves? that's the subject of cnbc's latest all-america economic survey. our reporter, steve liesman, is here with those results. steve? >> yeah, kelly, fascinating conversation ties right in. the american public, in the wake of this hamas terrorist attack

on dame, strongly supports israelis over palestinians and a significant share want both sides treated the same, and the survey finding support for joe biden at nearly all-time lows. 39% saying that they favor israel over the palestinians, that compares to 34% in 2014 when there was a war in gaza, as well. 6% say they favor palestinians. 36%, though, want both sides treated the same. that is, however, sharply down from 2014. notice that 19% are unsure. that's a sign perhaps that the situation remains fluid because of a lot of the things you were just talking about. joe biden in tel aviv today promising an unprecedented aid package. the public is likely to report that, 74% saying military aid is an important priority for the u.s. government, followed by securing the mexican border, followed by humanitarian aid.

but 61% supporting military aid for ukraine, not a lot of support from the republican party there. and 52% saying economic military for taiwan is an important priority. republicans and independents, they have these following priorities. one, securing the border, and two, military aid for stale. democrats give that the most percentage of support there, followed by humanitarian aid, followed by israel in the third spot. the survey of 1,000 americans around the country finding that all of this economic and dgeoan political turmoil is costing biden support. overall, this is the highest disapproval rating for this administration. 63% disapproving of his foreign policy, and 31% approving, 60%

disproving. all of this finding former president trump would beat joe biden by 46 to 42 points with 12% unsure. so interesting numbers here that leaves a base for what is going to happen next year, but tells us right now about the support for israel when it comes to that military funding package that might get through congress if there's a house speaker. >> steve, thank you very much. our steve liesman. let's get to the market moving event of the hour. 20-year bonds went up for auction. looks like stocks are off the lows. rick santelli, maybe it wasn't as much of a disaster as the ones last week. >> no. it was not a disaster at all. we're talking about $13 billion 20-year bonds. we're adding to an issue that opened a month ago, maybe more liquidity will help. the yield, 5.245%, the highst yield ever for a 20-year since they brought it back in may of

2020. and do remember, 5.245% was this auction. you know what we did a month ago? the 19th of september, when we opened this coupon, the yield was 4.592%. in a month, it's moved that much. i gave it a b in terms of a grade, mainly because it priced so well. sometimes we say that it priced out of the realm of the market. this time, it stopped through, meaning it priced at 5.245. lower yield, higher price were the sellers. many are say bring is all this recent selling coming from? why is that 20-year yield so much higher? i'll give you something, the reverse repo market. it peaked in december of last year and over 2.5 trillion. you know what it was yesterday?

a little under 1.1 trillion. so when yields are moving up, it is part of the fuel. why is that? let's make it real simple. remember those banks that had issues, having such large losses? think about the fed paying interest on reserves. maybe it's not worth holding on to that, they're blowing off the positions. where are they going? into the secondary market. kelly, back to you. >> that chart is a thing of beauty. rick santelli, very much appreciate it. major ramifications of this move higher in yields for the housing market and for the 30-year average mortgage rate. diana, we have a big headline this afternoon? >> i'll say it, 8%. the 30-year fixed has jumped 20 basis points this week as investors ingest stronger than expected move.

so compare that to just 3% two years ago. what that means for a person buying a $400,000 person with 20% down is, they are now paying about $1,000 more a month today than they would have just two years ago. as for that economic data, housing starts rose in september with single family up around 3% for the month and 9% from a year ago. building permits, we're not as strong, up just 2%. builders are using mortgage rate buydowns to lure more buyers in and help them to afford the payment. 75% of incentives being used today are those rate buy downs. of course, higher rates continue to hit mortgage demand applications to buy a home. dropped 6 p% last week and 21% lower than a year ago. one note, kelly, i'm hearing a lot, the word "cash."

>> people still have it or running out? >> they use it to buy homes because they don't want an 8% rate. so anyone with cash they are going in. the builders are telling me this. i got a text yesterday saying after the record we did yesterday, they said i see more buyers in, but they're coming in with cash. >> and sometimes multigenerational cash involved in order to make these purchases affordable. diana, thank you. now to shares of hancock whitney, the bank moving lower after they beat on earnings third quarter. but low growth continues to moderate as higher rates and insurance costs change consumer behavior. joining us now with more on the business is president and ceo of hancock whitney. john, great to have you here. i don't think you've been on before with us. welcome. >> no, first time on the show. thank you for including me. >> down in the gulf, mississippi area and so forth.

we are hoping maybe you have a different and better read on the economy, maybe a stronger one. but it sounds like you are experiencing slowdown trends. >> i'm actually in san antonio today. we opened up our first san antonio office. so many of the markets across our foot print have done quite well and good for growth. the slower parts of the market have low pressure during downtown. so it's a healthy balance. >> how long have you been in the business? this is a question becoming more relevant than ever. those that have lived through a couple ofcycles with higher interest rates are going to have better institutional memory than those who haven't. how do you compare banking in these times with what you have been through or not been through? >> it's a great point. when we look at the ages of bankers and credit people in the industry, it's shocking to remember how many of the gray

hairs are left. i've been in the business over 30 years and in this company for 29. so this is just another cycle. >> the main certain, there are many, we'll talk commercial real estate exposure. i was struck by goldman's ceo says they paired their e pxposu by 50%. so being very conservative. is that your experience, as well? >> no. i think some of the comments you hear from other players are due to urban concentration. understandably, there is a lot more pressure due to the lesser number of people working in those buildings. our foot print, while we have some urban areas, we have less than one hand of projects in our books, all which are extremely low. >> really interesting. let's talk about the impact higher yields have had. i don't know if you find

yourself in the same awkward position as some of your peers or how you made those decisions at if time about what to do with your deposit explosion, if you were among the many banks that had one. what is the status today? >> that's a great question. back when the pandemic was in its go-go days and the government was putting a iting money in, we were a ppp lendor. so we did see a huge in flow of deposits. but we are a conventional bank. the company celebrated its 124th anniversary last week. at one point in time, the free money component of our deposit book was 50%. 50% of our deposits were in checking accounts. so those are real clients. this third quarter, as we see the deposit cost mitigate a little bit, i think we're beginning to see the coming out,

we're beginning to see compression ease. so the beginning signs of stabilization. >> so what's the impact on the consumer, on some of the commercial business from higher rates? i have a hard time imagining that people can handling 9%, 10% borrowing rates. i mean, it just seems difficult. >> we're seeing a dramatic downturn in the amount of big ticket purchases. we don't see as many people doing large purchases like they did back in the day where is average account balances were so high. a lot of that access has flown out of the market, and in reality, we see the summer of '24 is when average size balances move towards prepandemic normals. so we're probably in the late third quarter of the game in terms of getting people back to a normal spending habit.

i will say this, kelly, and you mentioned this prior on a show, the bigger pressure on consumers is housing costs. costs have gone up tremendously, and there's a lack of affordable housing in the country that makes it difficult for people to house their families. so i don't think interest rates are the biggest constraint on the consumer as the cost of housing and insurance. >> very interesting. obviously, we see what's happening in florida and some of those markets. anything else you would add in terms of regional dynamics, whether it's what is going on with the energy space or maybe it is an insurance cost or one area to watch? >> no, only to say that much has been made about the notion of a hard or soft landing in the economy. i think we're headed to something more like a safe landing. there will be simply impact from the tightening of monetary policy until inflation is better managed. but it does appear to be a safe

landing. so while we are in a pause of moderated loan demand, until outflow stabilizes in banks, we'll see that over the next few quarters or so. then we enjoy the benefit of that safe landing. >> nice parachute glide perhaps. nothing too crazy. john, thank you so much for joining us today. it's been a pleasure. >> thank you, kelly. >> john hairston with hancock whitney. here with more on the regional banks, let's bring in the director of research. great to see you again. these are strange times. there's incredible pressure across the rate complex, yet the banks are not trading at all like we are in a crisis, but the valuations are still pretty low. >> that's correct. we have seen most banks continue to move capital ratios higher.

the book value has declined about a half a percent. there is still interest rate pressure. the fourth quarter will have more, but generally speaking, the banks are moving forward. it could be so much worse. we've lived through times when the banks were in a much worse position. >> is all of this because they're getting a back door bailout where they are taking some of the stuff that they never would have taken? usually there's a discount. i think those are often one-year loans. i don't know how much of the regional banks are exposed to that kind of funding that could come due in the next period of time. >> so it's very limited. it's $109 billion of the term funding program. that's only about 20% of what the banks have been borrowing year-to-date. so the fed offers a nice relief out. we like that, but we haven't seen it change much in the last six weeks. >> can they with stand this

period of time, and is it because there is this government backdrop on all bank deposits in america? >> well, the banks still have a lot of capital. they have a very good earning stream. we think the risk changes this quarter have been modest. hancock and john speaking before had very little change. other banks are seeing small upticks, but it hasn't been anything dramatic. the sector is moving forward, despite sort of the lack of growth that we see right now. i think there's a lot of banks being careful. but we are seeing increasing loan scarcity of credit also. >> and you like some of the acquirers for community bank. it's been a little quiet on that front lately. >> that's correct. earnings will be out next thursday, the 26th.

we think they will show good poz it retention. there's still a lot of cash to deploy. they're better off on the liquidity front as new rules will be coming in next year. but i think it will be a solid quarter, and many other banks, the report tonight and the next two weeks are in a pretty good position. cash flow is still king in the operating space, which gives banks a lot of latitude to work through the credit risk. >> chris, thanks for joining us today. >> thank you. coming up, from news corp to disney, there's been a flurry of new investor campaigns lately. my next guest says it will only get busier from here. ken squire joins us next to explain what is driving the uptick. and here is a look at markets well off session lows. we cut the declines in half after that better than expect 20d-year treasury option.

the russell 2000s are down 1.4%, but the ten-year note is back to around 4.88. back after this. is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening.

♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. welcome back to "the exchange." shares of news corp, allstate and vf corps are up this week after investors announced stakes in those companies. shares of genetic testing company alumina are down today. 850 campaigns were launched just in the first half of this year.

by comparison, the total campaigns last year was just 1,000. ken squire is the founder and cio of the deactivist fund and just hosted a summit on this topic just yesterday. ken, busy times. what's driving it? >> thanks for having me. first of all, the three quarters of public companies have direct denomination between december and february. so now you see activists starting campaigns. you know, our conference is -- so much is seen as the kickoff to the activist season. we had a dozen new ideas yesterday alone and we turned away people we just couldn't accommodate because of time. i do expect to see a lot more activism. >> why? >> first of all, it's been a successful strategy. high interest rate environments where management teams can not finance their way out of bad business plans, it's easier to

get this done. when markets are done, it's easier to stop bad management and get other shareholder support. >> interesting. so you are saying the lack of buybacks and financial engineering is making companies have to get more creative and giving activists a window of opportunity? >> absolutely. >> expand on that. who could be targets here in terms of size? what are you watching? what did you hear in the conference yesterday? >> size doesn't matter any more. it used to in activism. 15 years ago, you couldn't go on like a disney and get anything done. now you can, because activists are being more accepted. they're getting support from the large shareholders when they have a good plan. any company that is underperforming and, you know, from several quarters, it could be a target of any market cap.

>> wow. so do you think this is good for investors? when you think okay, financial engineering, buybacks, there have been people who argue that's positive depending on the price and others who argue it's not so much. same with deal making. people say they've been value destr destructive over time. so is this all investor friendly? are these moves and shakeups that need to be made? >> let me say one thing clearly, share buybacks is not a strategy on its own. when a company buys back shares without a plan to create value or an operational plan, that's not a good strategy. when activist comes in and suggests share buybacks, it's generally part of a bigger plan where they can create shareholder value operationally, strategically, and if they can access cash on the balance sheet, they'll buy back shares

of that value ation at a lower price. so that's how we look at share buybacks. >> i just want to mention a couple of stocks. you said the three top ideas, one was frontier and treea. >> treea is a global contract research organization. they have 13% margins versus their peers at 18%. this is a growing industry. they have a great ceo, who has a track record of improving margins and creating shareholder value. and this is seen as a $42 to $72 to be if they can get their multiples to where their peers are. >> and frontier, one of the biggest players in the communication space, that stock down, as well. ken, we'll leave it there. we'll check back in soon as it sounds like you guys will be busy. >> thanks for talking to me. let's get to tyler mathisen

for a news update. >> thank you very much. protests erupted in beirut near the u.s. embassy. lebanese security used tear gas on the demonstrators as they shouted against israel, threw rocks and waved palestinian flags. protests spread throughout the region after an attack on a hospital that the israelis say was perpetrated by hamas. the environmental protection agency found that lead emitted from airplanes pose a danger to public health. more than 170,000 small planes use leaded gasoline, opening the door to a debate over how quickly airports can phase out this neurotoxin in airplanes. the nfl commissioner roger goodell is extending his contract, keeping him in the league through 2027. he holds the most powerful

position in american sports. since taking on the role in 2006, he's boosted revenue to about $20 billion a year. and navigated a booming expansion in many ways. league owners finalized the contract at a meeting in new york. kelly, back to you. >> quite a run and more to come. coming up, netflix reports earnings tonight with the stock coming off its worst month in a year and a half. we'll look ahead and whether subscribers are pulling back on spending. as we head to break, here is a look across the sectors, as the market improved initially following that 20-year auction talk at the top of the hour, but now sliding back towards energy lows. only energy and consumer staples are in the green. we have seen some relief lately. worst performers, materials, um discretionary and industrials. back after this.

welcome back. stocks have headed back toward session lows. also getting news that house

speaker jim jordan says he's staying in the race and has not decided whether to pursue a third vote. he lost 22 republican votes in the second round that concluded earlier this hour. there you can see the market tone as we head back down with the dow down 263 points. meantime, netflix reports after the bell today. with shares up 18% so far this year. it's been rulered by some they could hike prices again. and it's not just netflix. according to "the wall street journal," the average cost of watching a major ad-free streaming service is up 25% in the past year. and americans are paying twice as much per month now as they did in 2018. have we reached the limits of streaming price hikes that the consumer can stomach? joining me now are my guests. martin, do you expect any more netflix price hikes? i heard some angst that maybe the growth won't be as strong as hoped. >> look, i'm a little bit

puzzled by the transition to pay for sharing. in the june quarter, it was the first quarter, i think this september quarter is going to be really interesting to see if it becomes more meaningful. they talked about 100 million people who are free loading, and they're clamping down. our survey suggested 40% of those eventually one way or another would pay for it. the outlook for september doesn't jive with that. so maybe that fixes in, maybe not. maybe what we are seeing is some price sensitivity. you know, i think that this could offer maybe a different kind of, kind of moment for netflix. they have had a go, go, go story and we may be seeing some maturation of this market. i think they're pushing by raising rates people more into the ad-based tiers.

but i also think there's a limit to how much you can do that in this environment, with everyone raising rates, the consumer is stretched, and the alternatives out there can be better and better. >> you have a neutral rating on the stock as a result. alex, the journal's figure is still that we are only paying about $30 across four services. but it's not like people are entirely dropping their cable bundle, either. so it feels like an add-on and not necessarily a replacement. >> over time, you have have to imagine it would be. but we're still not there yet. the interesting thing we have seen, though, are prices going to go up? the answer is always yes. that's how companies make money, and these are publicly traded companies on wall street. but the interesting bifurcation is that while we have seen a 25% increase on the ad-free services, you are seeing almost all of these media companies

trying to ship customers to the add supported services. >> what do they really want? do they want people to pay that higher $15 to $18 price point, is that more lucrative? your answer is no, it's more lucrative to be on that ad tier. >> you might think what they want is a net neutral. let's figure out the exact price points where it doesn't matter. and what companies like netflix have seen is maybe there's more of a delta between the ad supporters and the ad free. disney has also come to that conclusion. so what we are likely see is the price going up and up on the ad-free services. but maybe they keep the price low to make the shift a little bit more palatable to consumers, but also for advertisers too.

as more consumers shift over to the ad supported tier, the price can go up because there's more eyeballs there. >> i'm going to scream in rage, because i like obviously the ad-free option. i understand the companies don't want that. at some point, we're now just putting the jeagenie back in th bottle. would you be happy if the streaming stocks had more people paying or more people in general on the ad tiers going forward? >> i do think that there's more of an opportunity on advertising longer term. i think that you can grow the ad revenues faster, and i do think, though, the question of how many people want is form factor of entertainment driven subscription, streaming, video, is an open question. what we are seeing from the nonnetflix services, for instance in sports, is something

that netflix is only kind of dancing around. in order for them to continue to grow their addressable market, they may need to make a bigger push. and generationally, consumers are much more interested in the free user generated content like on youtube and tiktok. so i think there's some generational questions around the addressable market. >> alex, last word, and these stocks have been through a lot, the streaming business model has been called into question. there's been a lot of speculation how much more deal making needs to happen. >> it will be interesting to see if netflix plays at all in the upcoming nabs right nba rights they can get into live sports. these are live events, sort of the premium advertising events. this ask one of the reasons netflix hasn't gotten into it in the past. now they have this ad tier.

but no doubt to your broader point, kelly, there will need to be another round of consolidation with all the players here. we have not seen it yet. whether it's paramount global that goes first or even perhaps our own part company, nbc universal gets involved there. >> right. >> that's probably in the next two years that we see the next round of this happen, as the smaller guys look to compete with netflix, which is still by far the dominant streamer in the world. >> a report today, apple or amazon, looking at the nba races, one of the major sports still up for grabs. so i like watching them get into a bidding war. >> so does the nba. >> thank you both. we'll hear from netflix after the bell. coming up, three other names reporting, tesla, las vegas sands and glam research. we'll get you those trades with

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here's why you should switch from chrome to duckduckgo. duckduckgo is a browser you download to your mobile and desktop devices. unlike chrome, the duckduckgo browser has privacy built-in. it comes with a private alternative to google search, which doesn■t spy on your searches, and it blocks cookies and creepy ads. and there's no catch. it's free. we make money from ads, but they don't follow you around. join the millions of people taking back their privacy by downloading duckduckgo on mobile and desktop today. >> welcome back. time for earnings exchange. today we have the, a, story and trade on tesla, las vegas sands and lamb research. jeff, welcome. and got to start with tesla. shares have still more than doubled so far this year. deliveries and price changes will be key to watch and the

street is not too optimistic. b of a cut estimates saying that while barkleys is expecting soft results with soft margins. of course we want to hear what musk says on the call. this stock down 4% today, one of the worst in the s&p. what would you do with it here? >> i want to be a buyer. i've been long the name since last december and yes looking for 72 cents a share on about $24 billion of revenue, but you are right, we'll be focused on what the revenue will look lick next year in 2024, but right now you have to look at it either throughe an automatic might hav or ai lens. i like it here as an ai play. i think that you can actually approach it right now with the volatility, you can sell a put, collect over $8 expiring friday. so you are getting paid if you want to own tesla. and i do. >> and what about las vegas sands? very different story here. shares down more than 30%.

about since its 2023 highs. tells you how different it is now. deutsche highlighting the recovery in macao and mass gaming revenues. would you be a buyer of this stock? >> you know, i'm not a buyer here. i don't want to be a hard selder, but at the end of the day, we have to see what transpires. but you look at five years, it has been a zombie stock. hasn't gone anywhere in five years. but they do have a decent balance sheet, so i won't hate on anybody who is long here, but i don't want to own it. >> there is the five year chart, down 20% during that time. so it has been a slog. how about lam research? shares more the designer, up 55% so far this year. and those restrictions plus the recovery in memory chips will be things investors are watching

after the bell. would you want exposure here? >> i think that you can get exp exposure. it correlates, it has outperformed stocks but had a rough 2022. but when you talk about some of its biggest clients, they are micron, intel, where everyone wants to be positioned. so i think owning the fabricator makes a ton of sense. so, yes, i want to be a buyer, makes a ton of sense that continues exposure to semis as the ai theme will recur back to enthusiasm i believe q4. i know santa claus rally has not been said yet on cnbc with all the red out there, but i think you want to own this. >> and you know i can't resist, especially on a day like this, we start with an okay tone to the market, we sell off sharply, we come back after the bond auction. yields are popping. what do you make of it? >> well, i cut my teeth in the bond pit, you know that, back in the 1990s. and it is just remarkable to see

the sensitivity that equity traders are having to the bond market. so we continue to look to the bond market for leadership and sensitivity, what is going on in the middle east. but i believe that we are at peak rates in the 10 year and 30 year. we saw mortgage hit over 8%, first time in over 20 years. but my thesis on being long not just the market but some of the tech sensitive names is on the fact that i see the ten year going back under 4.a5% could yo to th fact that the federal reserve won't raise rates in november and also less than 40% chance in december. so i think that the fed has to sit on their hands and they would be ignorant if they didn't. >> today just feels like the whole thing is untethered. >> yeah, and it is a roller coaster. and people still repositioning their portfolios. but i think that we have to look for bond leadership specifically long end of the curve.

and the fed understand that they can't move rates much higher here. i know they are not getting the results they want, but they will sit on their hands. >> all right. jeff, thank you. and that does it for the exchange. next on "power lunch," the beige book on economic conditions. tyler is getting ready for it. ♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. 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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hey everybody, welcome to "power lunch" for a wednesday. long side kelly evan, i'm tyler mathisen. coming up, earnings and the economy. the fed just releasing the beige book on economic activity. we will have the details shortly. steve is studying it right now. tesla and netflix reporting results after the bell. those are big numbers and we'll get you set for both of those reports. plus the biden administration announcing