come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. good afternoon, everyone. welcome to "power lunch." alongside kelly evans, i'm tyler mathdson. coming up, stocks mostly higher today. the ten-year yield pulling back after hitting 5%. we're examine this frisky relationship between stocks and yields and whether they can both

maybe go up at the same time. >> plus, is the real estate broker system broken? lawsuits, backlash, rule changes and both sides of the debate are saying this will really change real estate forever. we'll explain the controversy and get answers, kelly, on the impact. >> looking forward to that. first, let's get a check on the markets which have been fluctuating all day long. the dow is down 28 points despite the drop in bonds yields. over 5% to a near 480 right now. the s&p is hanging on to a 16-point gain, and the nasdaq is driving the way with a .9% increase. we also have a big deal in oil today. chevron buying hess for $53 billion in stock. both stocks are lower. chevron by 3.5%. hess by about .5%. this follows the big exxon pioneer deal recently. okta getting crushed again today. it's down 20% in a week after hackers accessed its support system, losing 9% of that today.

all right, let's get to that often rocky relationship between stocks and bonds. since highs hit this summer, stocks have pulled back while yields have jumped. which is leading the dance? let's bring in mike santoli for more. i would say the circumstantial and logical evidence are that yields have definitely been the main driver of what's gone on in the markets. they started their assent in late july as the stock market was peaking. it's worth stepping back and saying what does a 5% treasury yield mean? it's not some kryptonite level for the economy or stocks. nominal gdp is equated roughly to the ten-year treasury yield. we were around 5% on average for a long period before the global financial crisis. the issue is the pace at which it's happened, the losses being taken on treasury securities which are the collateral for everything in the world, and also, of course, whether it's nonfundamental factors driving

it as people have talked about supply. i do think there's a sort of paradox at the center. yields are going up at least in large part because the economic data have been stronger than expected. the fed wants to keep rates higher. belatedly, getting a recession trade, but the exact higher yields are causing a lot of doubt that the economy can handle it. that's why the cyclical parts of the market since late july have really led the way lower. if you look at banks, consumer cyclicals, you look at small caps, massive underperformance. where that leads us is not so much some kind of valuation math that says 5% or 4.8% means x multiple on the s&p. it's much more about can the economy weather this? we have late cycle psychology on top of the psychology in the bond market that says there's too much supply coming out. it leaves us in a fix, but interesting to see the relief today in a fairly oversold stock market on a modest move lower in the yields. >> stay there. we want to continue this conversation on stocks and

bonds. our next guest also looking at earnings and the opportunities that come from overreactions on the up and the down side. let's bring in our friend, stephanie link, chief investment strategist at hightower as well an a cnbc contributor. how are you? >> i'm good. horuio? >> pretty good. let's talk about the economy and bond yields. a lot of people think -- my basic question is, when are interest rates going to start to slow the economy or have that already? we know they have slowed the housing market elsewhere, the economy seems pretty strong. can we continue to expect that? >> well, the economy is certainly chugging along. and that's been because of the consumer has been resilient and that's because jobs are still plentiful. and wages are actually higher, and inflation is coming down. so real income is going higher, and believe it or not, the consumer continues to spend. we got the retail sales data that was over double the ex

expectations last week. i think the consumer is pretty healthy, but wi know higher rates are going to eat into the economy. it's just the big question is by how much? and because we know the third quarter is going to be quite strong. >> the third quarter is going to be good. >> yes, third quarter is going to be good, but how much do we slow in the fourth quarter? that's the question. do we slow at all? that's why it goes back to what you mentioned earlier, earnings. that's what we're listening to. so far, the earnings are coming in better than expected. almost 80% are beating. now we have to listen to what the companies have to say. so far, none of the companies including the banks are saying that there's this massive slowdown coming. it will come, but we don't know to the degree. >> mike, how do you react to what steph just said about earnings and where they are and the outlook for 2024 as we get ready to turn the calendar page? >> yeah, while we have all justifiably been focused on a

lot of macro intermarket factors with bonds versus stocks and everything else. the earnings trajectory has inflected higher. we see the consensus building toward growth in 2024. to me, the real question this earnings season has to answer is, is the first half of 2024, those numbers plausible or not? i think it's going to take the full season to get some better sense of that. it also gets back to the underlying economy. a lot of those forecasts are based on the economy continuing to do reasonably well, and i think that we have been just been on alert for some kind of either financial accident because of the fast moves and yields, or just out of that effect flowing through and the cost of capital. i really think we have sticker shock at near 5%, even though in the abstract, that's not some number we should necessarily feel is incompatible with a steady economy. >> i'm a little unnerved by the uninversion of the yield curve. it's now almost complete.

you're peering around the corner and saying we know what normally happens next. >> if there's anything we can project on normal versus this cycle, i think it is a reason to be on alert. it's happening through a different dynamic. it's not as if short term yields are crashing because the fed has to cut into a weakening economy. that's usually the way it's happened ever since thelast 50 years in this cycle, but you're absolutely right. it's all of it is kind of the ground is moving a little too fast under people's feet, so whatever the actual set of factors driving yields in this direction, it could have a little bit of a challenge set up for us in terms of how the economy digests it. >> in the near term, at least it will take, if the long end is kind of put in the highs for this recent move, you have to think that's going to help along with the earnings you mentioned for at least the near term. >> it should. but the problem, kelly, for stocks is now there is an alternative. even if yields were to pull back

a little bit to the 4% level, they're still competition. there hasn't been competition for ten years for equities. it was the only game in town. now there's a strong rationale for 64/40 asset allocation or 70/30 where before it was like 100/0. i believe that earnings are going to be good this quarter because the economy has held up. i think they'll be good even into the first half of next year. and then i think it's the second half of 2024 that i'm going to be watching for any clues on a slowdown in the economy as well as in earnings. >> two steaks you added recently, american express and schlumberger. why? >> yeah, so you know i call earnings season silly season because you always get overreactions one way or the other. on friday, i got the double whammy of american express and slb. american express, they had a good quarter.

they beat on earnings and revenues. they actually talked about strong consumer spend, total consumer spend was 7%. u.s. up 9%. international up 15%. and gen z, which is 60% of their membership growth, up 18%, and at the same time, they said that write-offs and delinquencies were actually below pre-2019 levels. so still very healthy in general about the consumer, which makes me feel better about the economy. schlumberger, same thing. the stock fell almost 4% on their news, and they actually beat. they had 11 straight quarters of margin expansion. two straight quarters of a billion dollars in free cash flow generation, and international is inflecting higher, up 12% in revenues with higher margins. why that's important, because it's 84% of total revenues for the company. i think 20 times for a company of this caliber, and it was down on the news, so i bought that one too. >> all right, thanks a lot. appreciate it.

mike, thank you as well. let's go to chicago now, bring rick santelli in for his thoughts on the big reversal in bonds today. >> you know, i think if you look at twos and tens on one chartd, it really speaks volumes about how today turned out. the two-year note yield is basically sitting on chains, hasn't had any significant volatility, where the ten-year note yield, it was adversely affected and i'll get to reasons why much earlier in the session, but it just continues to slide. and we could argue about all of the differences between, for example, the u.s., the eu, the uk in terms of their economies, but there are also many similarities. and the similarities are debt, the similarities are supply, and also the state of the consumer and the slowing process. now, we could debate whether the u.s. is as slow or slowing as quickly as europe or the uk. but there's no doubt that if you look deep enough, there are

certainly signs, whether it's credit card signs or potential for some of the loans that are going sour, so let's look at the twos to tens for the u.s. and the eu on one chart. now, the u.s. went from july to september since the twos/tens spread was at this level. the eu, since march of this year, and uk, since june of this year. as you can see, look at the similarities there. and the reason i show that chart is because it's really much about central banks manipulating interest rates and now the runway for that manipulation is running out. there are certain stencils that are very similar, and one thing you need to pay attention to it is the leadership of the german economy and how its slowing is going to affect the eu in general and also how debt is going to affect growth in the u.s. as we get gdp numbers this week. and finally, i said there was an influence early that pushed rates a little higher. here was the influence.

ten-year jgb closing at an 11-year high year yield. their bank of japan meeting like ours is at the end of the month. pay attention to jgb moves. they're the weak link that could push many interest rates higher. >> a tour deforce. rick, thank you. to the victor goes the oil. tons of deal making in the energy space. the latest is chevron buying hess for $53 billion. we'll discuss that next. plus, going for the brokers. growing backlash over realtor commissions leading new york to make a historic change. those details further ahead. and a score of big tech names reporting results this week. what should investors look for if they want to trade the results. 'lgetenil ppt enwel t chcasuorwh "power lunch" returns. to duckduckgo on all your devie

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. huge deal in the oil industry this morning. chevron buying hess for $53 billion. let's bring in peppa stevens for more on the deal. hi, pippa. >> this all stock deal is about diversifying chevron's portfolio which had been light on long term growth opportunities. hess has assets in guyana which extends their visibility into future production. here's what they told cnbc about the deal earlier today. >> the duration of our cash flow

now as we bring these two companies together, i talked about long term growth and long term value. this extends our visible growth profile into the 2030s. >> hess brings growth to chevron, growth in resource, growth in production, growth in cash flow, and chevron brings us financial strength. financial strength in terms of a strong balance sheet, a diversified portfolio of assets, and industry leading cash returns. shareholders have demanded capital discipline, so acquisitions can be more attractive way to grow output, and as dan pickering told me, stock for stock produces balance sheet risk while leaving plenty of cash for buy backs. this is the fourth largest upstream deal on record, and comes less than two weeks after exxon bought pioneer natural resources. the common thread here is majors looking to refill their pipelines to maintain production against a delining asset base. although shares of chevron and hess are lower today.

>> pippa, thank you very much. our next guest says despite the potential upside this deal could bring on a larger scale, he's lowering his chevron price due to the decrease in value. neal dingman is an analyst. do you cover hess as well? >> no, i don't. >> i don't know if you want to speculate. why would hess shares be lower on the deal? >> i think the concern is, and pippa kind of talked about this, in the near term, you're going to have dilution on this. that was my concern on chevron as well. long term, i get it. but in the near term, on an asset like this, given what they're paying, hess stock has outperformed chevron the last several months, easily even the last couple years. even that slight premium they paid tells me they'll be diluted for '24 and '25. >> we saw a similar dynamic, exxon shares were down when that was announced. would you prefer they were using

cash for these deals instead of stock? >> i definitely prefer stock for stock, especially when you have the marked where there is now. there's good probability we have a price spike given the geopolitical risk. you look where oil is now. if one asked me is there a better chance we go up $20 or down $20, there's a much better chance we go up $20. i would prefer the stock for stock. >> who did the better deal, chevron or exxon? the better deal and got the better price? >> i think near term, that's a good question. i think near term, we like the short cycle of the permian. guyana is a great asset longer term. has a nice setup, but we prefer the shorter term, the higher returns of the permian basin, so we prefer the exxon deal. >> you think they got a good price on it? >> they got a good, great price. again, same thing. pioneer stock had done pretty

well in the last year. as well, outperforming some of the majors. you know, what this does, again, i think not a surprise maybe that both of these had to add some assets. i think what this is going to do is put more pressure on other companies, the likes of conoco or emg to match that and buy some things themselves. >> that's what i'm curious about. if we see energy consolidation continue, who else is implied? does it start to raise equity prices across the board on hopes for some takeover premium or have the opposite effect? how does this all shake out and where does it leave producers and consumers at the end of the day? six, 12 months from now, is u.s. output at new record highs? >> no, i mean, in fact, maybe just opposite of what we have seen in the last deals on these is when one plus one, a lot of times they don't necessarily from an activity standpoint equal two because they let a rig or two go to get more free cash

flow, more shareholder return. so again, i do think this puts a lot more companies into play. i think it puts a bigger floor given how cheap these companies are out there. we look at even sort of that next group below a permian resources, permian company, accord, magnolia company, we think all three are just sort of midcap companies that have great inventory, great balance sheets, and just a phenomenal valuation right now. >> do you think there's any chance of antitrust moves here by the government? >> not in this one. i think there was so little overlap on this one, if you look what chevron owns versus what hess had, guyana being almost 75% of the value of hess, and chevron not having -- having minimal stake in that prior, i think very little chance on this one. had they bought, you know, maybe something big in the permian where chevron already has a

pretty dominant position, that probably would have raised much more speculation, but in this case, i don't see it. >> very interesting. and as mentioned, apparently they're still going to sell those trucks online. i remember them getting them 30 years ago. i loved them >> i had a helicopter that landed on there. >> did you? >> yeah. >> thanks so much. further ahead on the program, a "power lunch" triple feature. big worries about the box office. s.a.g.'s halloween dress code, yes, and a new era for theaters. we'll lay out three stories we're watching out of llood hoyw when "power lunch" returns. stay with us. has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're

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welcome back to "power lunch." i'm contessa brewer. a third convoy of trucks carrying humanitarian aid to gaza passed through the rafah crossing from egypt today. the u.s. and israel have promised to continue a flow of supplies into the region after the first convoys entered over the weekend, and this afternoon, the white house is still working to establish a safe passage out of gaza, particularly for u.s.

citizens. sweden is one step closer to becoming a nato member. turkish president irdewon signed the protocol on sweden's concession today. erdogan has been delaying sweden's membership and has accused it of being too soft on kurdish militants, but other allies have pushed him to change his position. and uber is getting into a new type of transportation. the rideshare company will now offer hot air balloon rides in turkey, no less. $159 flights will last for 90 minutes and will take passengers over the country's volcanic scenery. i can't wait until it comes here. sign me up. >> i give you credit because you cannot sign me up, and if you did -- but that very cool, regardless. contessa, thank you. ahead on "power lunch," a historic change in new york's real estate industry. we'll bring you the details next. plus, apple supplier foxconn

says it will cooperate with chinese authorities on tax and land use investigations. what's it mean for apple? investors are shrugging it off today. as we head to break, here's a quick power check on the positive side of the s&p is walgreens, jpmorgan up grading the stock. it's up 5%. on the flipside, fmc corp down almost 12%. the chemical company cutting at ypor ec. th'sour wechk today. we'll be right back. ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ - [soldier] take a look at this!

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welcome back to "power lunch." historic changes are coming to the new york city real estate market, with buyers getting the upper hand. cnbc's robert frank is here to discuss the details and maybe this could spread further, robert. >> it could. we have here two class action lawsuits and a potential probe from the justice department, all coming together and drawing fire at broker fees. the trial is now under way in kansas city for a class action lawsuit by thousands of home sellers against the national association of realtors and real estate agencies. the plan is they're seeking $40 billion and they say the association's fee structure is anticompetitive. two brokerage firms have already settled for a combined $139 million. a second class action suite is expected to head to trial next year. the justice department reportedly looking into the nar's fee policies which many blame for keeping broker fees artificially high, around 6%.

americans spent $85 billion on broker fees in 2020. in other develops meanwhile, broker fees are usually 2% or less. the real estate board of new york just announcing it's going to prohibit the seller broker from paying the buyer agent fee, also requiring a lot more transparency into those fees. the national association of realtors saying the market itself decides how services are given and paid for. i know a lot of home sellers and buyers would argue with that. >> robert, stay with us here as we bring in bess friedman, brown harris stevens ceo, for more. bess, welcome. where do you come down on this? as i understood it, basically, unless i specifically as a buyer enlist a broker and sign a contract indicating that broker works for me and will be paid by me for the services provided, that the buyer's side of the

transaction fee was paid out of the commission that the seller pays to the listing agent. is that the way it used to work, and how does this turn it upside down? >> yeah, good afternoon. how it works today is that the listing agent or the exclusive agent who represents the seller, the commission is put in there, and then the seller at the closing pays the seller's agent who then cuts a check to the buyer's agent. and so as robert said, they have changed the rules that starting january 1, now the seller will pay the buyer's agent directly. for transparency and consumer confidence, which is a good thing. we want buyers and sellers to understand who's getting paid and by who and all of those things. i think this is a good thing. what's unfortunate is that there's this complete misperception of what real estate professionals do. there's an article in the

journal today that referred to nar as the cartel and said buyer's agents do little to no work and have to find a new industry to work in or a new line of work. i think that's really unfair, because there's a great value proposition in what the buyer's agent does. they help them, they educate, they talk to you about mortgages. about the property, about the pros and cons. and so i think the real estate industry as a whole has been under attack, which is completely -- >> i would disagree with you. i worked with lots of agents over the years, both as selling a property and mostly as a buyer and those people do a lot of work, winnowing the field down and giving me advice and so on and so forth. but to extent that those buyer's agents were beingpelled from the seller, the argument has long been, hasn't it, the buyer's agents fundamentally were all really sellers agents, they weren't working for the buyer,

because the money they were paid, they had an incentive to get the best price for the seller. because they were being paid out of the seller's proceeds. >> well, representation and commission do not follow each other. so you can represent somebody in their best interest, and it doesn't have anything to do with the commission. and they are very clear about that. in new york, we have something called agency disclosure. the department and state insist on that to protect the consumers. they understand who you're representing and why. you can decide who you want to work for you or not. i think that helps. what doesn't help at all, i think, is this perception that reality tv portrays, shows like selling sunset, that show agents doing very little, not putting the clients' interests first, dressing unprofessionally. i think all of those things make us look like we don't know what we're doing. it payments an unfair picture. those reality tv shows are not

reality. it's absolutely not what real estate professionals do. they work so hard. buyers and sellers agents, and i feel like they're really under attack today. and i think that tv really hurts us in that way. >> bess, i think part of it is tv. more of it is technology, though. if you look at all of the industries that have seen their commissions compressed and their fees compressed by technology, miraculously, real estate agent broker fees are still at 6%. maybe you get them down to 5%, but many people say look, i'm doing the work myself as a buyer or seller. mostly as a buyer, looking at street easy or all these listings. i'm finding the properties, i'm looking at the homes. therefore the buyer's agent really isn't earning that extra 3%, so how do you think they have held up so well despite the fact that technology is doing a lot of their job for them? >> i mean, i agree with you about technology. it's a great thing, we have these aggregators like street

easy who exploit listings for money. they would monetize anything they could. they will make anybody an expert as long as you pay the fee. they would make an hamster an expert on street easy if you pay the fee. i don't put too much weight into what the aggregators do, but the buyer's agent, even though technology helps you maybe to find a property or identify a property, they'll educate you about the neighborhood, about the building, about the co-op board, about your financing, about the pros and cons. and they also have lived experience. they -- i mean, this is what they do every day all day. there's real value to that, to working with someone who can help you and guide you and comfort youwhen you're doing this. it's usually the biggest investment of someone's life. so i don't think you can water down just because technology, yes, is important and helps us to communicate quicker and get information to people quicker, you still need a human being to guide you. most people want to work with someone. >> i don't know if i'm -- i

started by going this is outrageous. now, having been through a few different ones of these, i go, yeah, no, we're taking a lot of time, even having someone open it for you and show to you. there's so much that goes into it. here's my question. there's this lawsuit, this kansas city lawsuit and potentially antitrust action could be coming from the government here. what happens in that case? regardless of whether it's right or wrong, if they start to try to say you can't have exclusivity or all of these mls and the rest of it and we're going to blow up the model? >> i think if that happens, then the buyers agent is going to have to get paid from the buyer, and i think this really hurts the consumer at the end of the day. i don't think it would be a good result. i don't want to talk too much about the lawsuit, but i just think that the way it's set up today, it does allow for the seller to extend the commission to the buyer's agent, and it's

in the price. they're paying for it either way. but i think that there's just -- i really do think the real estate industry is getting a bad rap. as i said, it was referred to in the journal today as a cartel. it's a little bit -- to me it seems very unfair. i don't think this -- look, i love transparency. we want transparency. we want people to know who's working for who and how they're getting paid. i agree to that all day every day. i just think the way they're going about it is not ideal. >> i think you need your own show or maybe it's real estate wars. >> me and robert frank. >> bess, thank you so much. bess friedman, and of course, our own robert frank. meanwhile, china is launching an investigation into one of apple's biggest suppliers, foxconn. we'll discuss what it means for iphone 15 production as reports of weak demand are already circulating. "power lunch" will be right back. cash. you think those two

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[ clock ticking ] we're going to have so much fun. . welcome back to "power

lunch." apple's main supplier in china is under investigation by chinese authorities. joining us to explain the significance of this issue is steve kovac. a lot of people are worried this is the continued onslaught against appleby the chinese government. but let's hear the details? >> this is at least the third incident in recent months that i can recall where a couple months ago, we had that issue where the chinese government was supposedly going to keep employees from using iphones. we saw what that did to the stock. a few weeks ago, another story about app store approvals and whether or not apple would be able to continue operating app store because apps have to be approved by the government on this individual basis. now this, this idea that state media and china reporting we're investigating into foxconn, which is the most important supplier for apple, makes most of the iphones, makes most of the apple gadgets in china. it's a taiwanese company, though, and this can be read as more saber rattling as we watch the biden administration here put these kind of restrictions

on ai technology that can be exported into china. >> what are they looking into, the chinese government? >> very low detail other than tax and land use issues. that could mean anything, and again, this is state media, so you can take it for the word straight from the government, but very nebulous, not a lot of details. foxconn saying, hey, we'll cooperate with any investigation, but again, there's also the taiwanese geopolitical angle. the cofounder, he stepped down briefly, but running for president of taiwan at the same time. just a lot of geopolitical issues and apple stuck in the middle. >> that executive is in taipei, i assume. >> exactly. >> he would not be subject to arrest, not he himself would be subject to arrest, which is what the chinese have done to a lot of executives there. they disappear them. >> like we saw with jack ma. he went off the grid for a year maybe. we haven't seen anything like this, but this is all happening,

i was on with you last week talking about signals of demand issues in china. we just got a note today from jpmorgan analyst saying the wait times for the iphones are shrinking. that might sound like a good think, i can buy my iphone in time for christmas. it says demand isn't as good as compared to a year ago. we know what happened a year ago with the covid shutdowns that ruined the holiday quarter for apple. the question is whether demand is hold up, whether services can grow. >> we know tim cook was there last week. then we get these reports whether the jon stewart show was canceled over some comments over china wore whatever it was planning to say. >> and ai. >> is there a bit more activity now? perhaps all of this is coming -- you just wonder about the timing of all of these events. is there really a pickup in the way or maybe the degree to which the apple china relationship isn't as comfortable as it used to be. >> they both need each other too. we talk about this a lot. apple provides gobs of jobs.

they literally bus people into these iphone factories from rural china, into wherever they build these iphones, they need those people employed too. that's why i kind of view this as saber rattling because they're not necessarily making an action, but kind of like nice iphone, shame if anything happened to it. letting them know who is in control here, which is really interesting. >> china needs those jobs but it's also clear young people don't always want those jobs anymore and leadership is trying to signal it's able to provide better and different ones. >> it's a mess. >> i agree. it's interesting to see apple is shrugging it off today, but it has been coming off a losing streak. >> this headwind hit premarket, shares were down a percent and it fell on friday. now they shrugged it off. it is an ongoing concern. >> still, the stock is up for the year. >> i forget where it was. >> 17%, 18%. >> it's come off the highs. >> a long streak here, like the

seventh day in a row of declines for apple shares. >> highs in july. >> i believe reports earnings on november 2nd. >> we'll get a whiff of what demand is like because the earnings report will include nine or ten days of new iphone sales. we'll get a little bit of a sense, and of course, any commentary about what smartphone demand looks like on the earnings call or forward guidance will give us more clarity. right now, the data we do have. >> we know what you're going to be doing on november 2nd. coming up, we're putting the tech in technical support. lots of big names reporting results this week. we'll check the charts for some attractive th meonececnas dk when "power lunch" returns.

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. welcome back to "power lunch," everybody. time for technical support. today we asked our technician to pick three stocks she's watching. today's focus on three of those magnificent seven tech stocks. here to chart them, jessica, director of product with options play. welcome. good to be with you. >> great to be back. >> let's start with i guess you could say the grand daddy of

them all, microsoft. >> that it is. they have similar themes which i find interesting. this one i wanted to chart a daily chart. this is where the support is, at 325. you'll notice all of the mega seven are finding support on moving averages, which i find very important and cognizant to watch. we're at 3.25. right now, it's long as we hold this from earnings then we have upward momentum to 3.40 and then to 3.50. if not, we're testing this lower level which is lower of 300. >> you would be butting on this from what you see? >> this is the ample buying opportunity as long as it holds this line. if it does not hold this line, that's when we flip to bearish. >> let's move to the next one is alphabet. >> yes, so google, this one, we're looking at a 13 weekly moving average. this is a longer timeframe and this is my favorite chart, 13 weeks represents one quarter of prices. extremely important as we go into earnings season. this is sloping upwards which

indicates that bullish trend. i want to make sure that is maintained. that is absolutely imperative. as long as this level right here around the 132 is maintained, then we're going to still remain bullish. however, if it fails, then we're bearish once more. but if we bearish once more. but if we have positive earnings with that ai story, then we can expect 140 and even 150 from all the way over here. >> so if it dips below that purple line, if the price action dips below that purmple line, that would be the watch out moment. >> we want to make sure there's supply there, but if it fails and sellers come in, in which place we're going to flip -- >> all right, walk me through meta. >> so meta is also looking at the 13-week -- >> same sort of looking chart. >> same chart. i love using the 13 week again because of one quarter of p prices. same thing, meta is right at its support line here.

if that breaks, then we are looking at here which is that psychological aspect that we talk about quite a bit. at one point this was -- it teeters between support and resistance constantly. if this isn't maintained -- >> i'm going to walk over here. >> i like it. >> does that trouble you that little part where it dips below that 13-week moving average? >> this doesn't bother me too much. we look at weekly closes. there are other moving averages i like to layer on top of this. even here it goes above, but it acts as a mean of resistance. >> i see. >> there are others i add to this, the 26 and the 40, which are two and three quarters. we want to see rolling prices. >> if this technical stuff doesn't work, you can be a weather person. >> yeah? >> really well done. you brought a contrarian play along for this. >> i did. >> bottom line on meta, if it stays above there, you like it. if it dips below you don't like it. you're making it so simple, i don't stand it. let's go to at&t.

>> yeah, so at&t, again, looking at that weekly view, this is clearly a down trend. we define down trends as lower highs and lower lows, which is what we see. on the weekly view, there is an indicator that i like to use as a forward looking. it uses ema, which is exponential moving averages. make it simple. it puts weight on current prices so within the calculation. that makes it forward looking. that has turned up at the bottom here, so that means at minimum, we could expect a rally upwards, pair that with some positive free cash flow on the fundamental side, we're looking at a contrarian view. >> good as always to see you. >> thank you. and we'll be hearing more contrarian calls this week. still ahead, a hollywood triple feature. three big head rlines are trendg out of tseinltown today. we've got all of the key details after a break.

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welcome back. three trending stories out of hollywood that are so good we needed a triple feature to cover them all. first between -- okay. first she said talks between sag and studios are resuming tomorrow. speaking of sag, the union also facing some backlash over its strict halloween costume rules and taylor swift's eras tour ushering in perhaps a new era at theaters. good thing julia boorstin is

here with us on set, our senior media and tech reporter. welcome. let's start with the strikes first, the ugly, and now people saying maybe some more pressure is coming to bear on actors to get this done. >> we have really high profile actors including george clooney offering to have some of the most high paid actors maybe give up some of their wins to have some of that money flow to some of the lower paid actors. i think a lot of the pressure right now is coming from the fact that it has been many, many months, the longest strike that the screen actor's guild has ever had. if this continues, it's going to have an impact not just on the spring television season but even on the movies that the studios can release next summer. the summer which really in hollywood starts at the beginning of may, that's the key box office season, and you really need to know and have certainty about when you'll be able to either finish movies or complete these films or even just shoot them to get them ready for launch next summer. >> most of the films that would be release ind in may, have mosf

them been shot? >> if hollywood there are a lot of reshoots or pickups, things you need actors for. maybe there's voiceovers. you need to know when you'll be able to start promoting these things, and the big box office movies are normally advertised months in advance. let's move on to the next one, which tickled my fancy this morning when i heard it on the t ""show ryan reynolds tweeted -- this is about halloween costumes, right? >> halloween kcostumes. >> ryan reynolds was joking. the girl who wants to dress up like barbie and the guy who wants to be ryan gosling and wants to be ken, you're not supposed to do that if you're a member of sag. >> this does not apply to

children. he was making a joke about it. there has been some debate within the screen actor's guild. the guild is saying, why would we promote films that would profit the studios that we're right now picketing. that doesn't make sense. let's not give them free promotion. don't post pictures of yourself in any photos that might seem promotional. there's been some debate internally. a lot of actors saying this is a waste of our energy. sag is saying we've got to be serious about this. >> what is arnold schwarzenegger supposed to do, he is the term term terminator, man. >> arnold schwarzenegger is not the terminator, we need to keep the distinction there, but i think it's going to be one of those things where they're saying let's not waste our energy on this. i don't think they're going to be enforcing it. there is some pressure to not wear anything that is too overtly promotionalal. >> let's move on to taylor swift's eras tour.

it's changing theater decorum. they're letting people stand up and sing and talk throughout the movie. is that going to be the new way to bring in a theater audience in the age where you can watch a lot of other movies at home on netflix. >> people are saying that the taylor swift experience at a movie theater is a great concert experience. it is not a traditional movie experience. people are not going to killers of the flower moon and yelling and screaming and dancing and singing along. this is very much a thing because this is a concert film. i don't think this is going to impact the way people go to other movies or the way they behave at other movies, and amc theatres is trying to lean into it within reason. they're saying feel free to stand up, but don't stand on the seats. >> if it becomes more popular to do the concert route, is that going to cause problems to killers of the flower moon and my boys are in there -- >> i think those theaters are pretty well sound proofd. i'm not worried about that, i think it's more people knowing what they're getting in for. expect it to be raucous and people singing and dancing.

>> it was like the old rocky horror picture show. everybody knew the words and would stand up and play it out! i think to a certain extent we'll see more cinematic film experiences that are like the rocky horror picture show, more interactive. if you're going to have a lot of people together in an audience, you're going to have some element of fun. it's like going to see a horror movie where people enjoy having a lot of people scared and jumping out of their seat zwls we'll see you tomorrow at the tech event. >> thanks for watching "power lunch." "closing bell" starts right now. >> thanks so much. welcome to "closing bell," i'm scott wapner live from post 9 here at the new york stock exchange. a big market reversal and the question that might be at the center of it all, did bond yields just peak today? that's what one billion dollar investor is begt on today. here's your score card with 60 minutes to go in regulation. it's mostly a tale of two sessions. yeah, the dow is modestly negative, but everything was negative. early on the ten-year hittin