the house has a speaker. representative mike johnson of louisiana, elected speaker of the house. further ahead, earnings, earnings and more earnings, from banking to tech, to airlines to defense, a lot of key names reporting results. let's start with a check out market as the dow is down about a third of a percent really, the dow is being helped by travelers and microsoft the nasdaq is down 2.3%, and in danger of falling below the 200-day average. we had a five-year bond auction that didn't go so well, and that changed the market tone, a start contrast to

microsoft, which is still up 3%, down -- 10% at the moment. let's start with the house vote emily wilkins has the details. >> reporter: hey, kelly, after 22 days, the house finally has a speaker. congressman mike johnson of louisiana. he got all republicans to unite around him, all 220 were voting today, one absent, they voted for johnson, now officially becoming the speaker they're in the process of swearing him in. as soon as they do, he'll have to get right to work the house has wanted a shod of support for israel, but there's also the upcoming government deadline, johnson has laid out a very aggressive plan to pass the eight remaining appropriation bills before that point. johnson will be a bit different from kevin mccarthy.

he's much more conservative, and a little further to the right. one major difference is he hasn't supported a lot of ukraine funding. back in may, he voted against sending $40 billion to ukraine he also voted not to certify the 2020 election, and opposed the current stop-gap measure he did support the debt limit agreement that kept us off the fiscal cliff, and now he will have to move as leader of the party. he told several members he's open to another stop-gap bill, potentially until january, potentially until april, they still have the details to figure out. he's not been in congress for a very long time, and now he's really going to have to be able to in negotiations go toe to toe

with president biden, chuck schumer, hakeem jeffries and keep reps united, which as we have seen over the last month, is no easy task. certainly republicans, i think there's a lot of celebration, a lot of relief, but i think you have to realize in less than a month we're facing another government shutdown. that means republicans need to keeple celebration short and get right back to work. >> emily, thank you very much. for more now, let's bring in the economic policy analyst at the american enterprise institute and cnbc contributor james, welcome. >> hey >> we don't know much about mike johnson, but one takeaway for me send that is the person that controls the house of representatives today, at least the majority, is donald trump.

>> no doubt. donald trump as opposed some of these failed nominees, and seems to support this one? that has been key. we don't know much about him that's one reason why he has this job, is because no one knew much about him being a mystery and otherwise having a pleasant kind of bland demeanor, while also being on the deep right, having trump's endorsement, that is a thing that really unlocked this puzzle. >> that brought over the eight who had opposed speaker mccarthy for being insufficiently conservative on fiscal matters and other things he's a staunch social conservative as well on such things as abortion, sex education for younger children, et cetera, et cetera >> he is in tune -- all those sorts of issues he's very in

tune with the base he doesn't come across as a members of what they would call the uniparty or the swamp or the establishment. you can see with that background why he has this job. listen, the real probably with the republican party isn't the person that sat in the chair, but the people who set in front of that chairs there's a considerable amount of wishful thinking, thinking that, hey, no government shutdown, it's going to be smooth sailing under january or april this is a person who may do a great job, but he has no experience running a big committee, fund-raising, whipping votes he has given a very vague, really, plan of how to move forward. i think there's a lot of wait and see here. >> i thought it was interesting to read that he really does have to hire a much larger staff

quickly. so, what is the most consequential order of business, do you think >> i realize previous guests said zero chance of a shutdown i mean, i don't know about that. i think there is a chance of that again, he sort of wrote this letter saying, we said to move forward, we want to extend it until january or april, but again, that letter was very detaillight. the devil is in the details. what would be the spending cuts? why will people who didn't like mccarthy going to jump on board here, if what he eventually offers is not much different from mccarthy? it's a big win for those who didn't want mccarthy, but is this enough? is that the win? if that was the win, we would have already had a speaker before >> what's also interesting here,

james, is the idea that he has voted against monies for ukraine. it is likely -- or what president biden has proposed is a bill or a package that lumps together monies not only for ukraine, but for israel, and he has received money from the american israel public affairs committee, so he's a staunch supporter of israel, as well as border security funding. how is this gentleman likely to try to thread that needle if a bill that packages those three things comes together? >> i don't know how he does that, and i would wager that he doesn't know exactly how he's going to do that you know, this is what i meant all the problems that mccarthy face are remade. now they're going to have to be handled by someone who has not been thinking about this job for

the past decade, who maybe was not thinking about this job a month ago. now, this is going to be tricky for the most experienced speakers of the past i'm knoll saying he's not up to it, but again, time will tell here for more impact on what impact this could have on markets, as well as the nasdaq weakness today, let's bring in peter anderson kevin munn, and hennian and walsh asset management

>> there's a lot of boxes we need to check in terms of uncertainty going forward. this certainly was a bogs to check. i don't think it's going to have as much impact as some of the other boxes that we need to check, for instance, higher interest rates, federal reserve action, international conflict, but, of course, it's better than nothing. >> so if it's better than nothing, peter, where does it leave you as an investor >> really, my investing strategy, it's almost a trivial assets they're basically independently operating. even though there's a lot of turbulence in the markets and internationally. if you stick to stocks that you think are mostly immune to all

this noise -- and i say that respectfully, the noise -- then i think you're set for the rest of the year. >> kevin, what do you think? are we set or is the struggle just beginning? >> the struggle will continue, unfortunately, but electing a new house speaker in fact, given all the geopolitical crises across the globe right now, military spending can and will only increase. according to -- they anticipate increases going up for $746 to $is 1 trillion if that's the case defense stock. >> peter, i'm struck by your line here, and i want our

viewers to brace themselves, when you say i love a 5% ten-year you say rising rates are good for markets, i hope the ten-year goes to 6% as family are throwing things at the television, please explain. >> well, kelly, i wonder if you remember where you were, saying, 16 years ago that's the last time the ten-year hit a 5% yield. my thesis is that for the past 16 years, we have been living in la-la land with yields so low, mortgages at practically zero rates, and they have anchored on those 16 years, which for many people is an entire, but if you look back to the '80s and '90s we had a treasury peak at 16% back them.

it driving me personally crazy when people are saying higher forening loer, and really higher, in my opinion is not a 6%, 7% year old. so, when the ten-year reaches 5%, 6%, to me i'm thinking that now we're coming back to a more normally operating economy. >> kevin, let me just conclude here i assume you think the fed is unlikely to raise rates next week when it meets there's just too much going on, by i note that, while you are cautious over the next six months, you're quite optimistic over the longer term. >> i really am just the flip side of what peter was saying, i believe that rates will be lower, yields will be lower over the next two to three

years. we can anticipate another 125 basis points, and another 1% in 2026, according to their own dot plot chart if in fact that is the case, and rates do come down, that should open opportunities in stocks and bonds guy and they're we're showing three of your choices there. always great to see you. coming up, the bitcoin flip. it's hard to track why crypto

does what it does. we will dig into that next don't go anywhere.

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what else is behind this for more, let's talk to ryan rasmuss. welcome, and tenaya is here on set with us. >> thanks for having me. >> okay. why still today? i do wonder if this is -- is it a dollar risk? you tell me. >> it's a unique aspect. i wouldn't write it off as just

speculation. there's a lot of momentum building you've had both mike november og -- novograf as well-as cathie wood talking about this. you saw the ten-year yield go to 10o and high rates are historically bad for bitcoin there is another narrative where the rates can be a bit of a catalyst for bitcoin, because, even if you don't see it as a safe haven, it's a safe haven in catherino. what you've been seen all year is the dominance climbing since january. so simply because of that high-rate environment.

>> that you see a lot with crypto assets that are much, much risky >> ryan, let me turn to you. i'm quizzical about bitcoin. it's an asset with no evident intrinsic value whose price is set purely by the demand and the supply in the marketplace. i would guess you're going to answer me in the affirmative here, that the reason bitcoin is rising in price is the anticipatory demand that's coming if there are bitcoin etfs, because it will widen the market so much, that it will be have access to it.

>>. >> we think since it was created in 2009, 80% of wealth in america hasn't historically had access to bitcoin, so we think the upcoming spot of etf may be a huge influx of demand. >> black rock has an application out there, wisdom tree probably has one, there are probably others what will the etfs actually own, fill bitcoin it's not fill, it's digital. >> yeah, they etfs will own the underlying bitcoin itself. that's exactly why we think it's so bullish for the price of bitcoin, because you'll have this constant influx of demand

on bit counsel as an asset, so it will hold the underlying assets that's why people are so excited, because it's the first time we've been able to own the underlying asset so every dollar that goes in, a dollar of bitcoin will be bought off the open market. >> and what are people saying whether this is the last gasp of a run. you know, again, is it facing more serious headwinds going forward as liquidity is generally tightening >> liquidity has been a big issue all year we forgot that, although bitcoin is up as much as it is today, a lot of analysts are saying, even with all of these positive catalysts, it's going to be hard to see bitcoin reach eat all-time high. you know, looking at levels, i think that's helped a lot of

investors. as long as it's not dipping below the 25k, some analysts will stay long on it holding at about 34,7, a lot of analysts are saying if it can hold at 42, there's a lot of positive catalyst behind it, and if it hangs there it gives room to run ryan, thank you. further ahead, an under-the-radar name getting crushed. commercial real estate stock co-star falling short. up first, sun power down 17%, tracking from itsor d wstay

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welcome back, everybody. pippa stevens has this report. >> oil prices are higher today, but bank of america said the market is being too sanguine around the breakout of the war they said if the conflict remains in l.a. law/gaza, and then in the unlikely event that the straight of hormuz were to be closed they there's a flow in that i production kits, as well as the united states refilling the petroleum -- about 100 billion of historical highs, so there is still room. however, people are not going full in yet. they're going up site by buying calls, because there is so much

i certainty in the market. one clear downward movement is down power. it does mean their costs good sold were higher than expected while this amount is not this much on the face of it, the issue is they are approaching a key level that could breach a cov covenant they are in talks with their learneders, but the threshold is $100 million in liquidity. what could breach the covenant >> it depends on the different

lenders, but there are different triggers in place. they're working with lenders on waivers that could account for some things. >> that in itself could be a trigger? >> exactly >> the issue is they could trigger on multiple ways. >> tippa, thank you very much. let's get to bertha for a news update. prime minister benjamin netanyahu said the country is getting ready for a ground offensive. he didn't say when it would happen netanyahu's announcement came in an -- france is sending a naval ship to the middle east to support hospitals in gaza, as officials there warn of a

collapse of their healthkaye system president macron said today the ship will leave in the next 48 hours. here in the u.s., the postal service is updating safety efforts in the wake of attacks on carriers. they announced larger rewards leading to the arrest of someone involved in a crime, as well as high security blue collection boxes. kelly, it's just amazing that postal workers are robbed and attacked their job is hard enough. >> it would make sense they would have to impose counter-measures, as we head to break, a lot of big movers here. stride hitting an all-time high,

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alphabet is dragging lower, based on disappointing information about the cloud business steve, what do we learn? >> i call it a tale of two clouds microsoft and alphabet moving in opposite direction azure cloud growth with a surprise bea of 29% growth, which cfo amy hood attributed to better than expected usage the question now, of course, will that continue or plateau again? amy hood was quite conservative in her guidance, so it's hard to tell microsoft also conservative

with expectations on the co-pilot, saying sales will grow gradually. now, over to alphabet, despite strong overall growth, great ad business, the miss on cloud revenue, expectations punishing shares google cloud a distant third behind amazon and microsoft, but everyone is growing at the same time, and there's something else going on here, guys. this a.i. boom is accelerating growth, but the miss on cloud might be a sign that it's not seeing the same benefit. microsoft appears to be managing its cloud costs better than google. what is co-pilot >> we're going to talking about this a lot this is the a.i. assistant that works with programs like teams, outlook, helps you through your day. one example of many, if you come back from vacation, tiler, and you have 6,000 eat e-mails

waiting, tell copiatt tell me what i need to do that i missed. it will bubble all of that up and give you action items. for example, if you need a powerpoint presentation, just give it the data and it will get you about 80%, 90% there. >> that's pretty cool. stick around less 'bring in julia boorstin as well as alan boone julia, what are you looking for and looking at with meta >> meta shares up over 150% in the past 12 months i think the key thing here is it not only outperform expectations, but guided to a pretty strong third quarter. no specific numbers, but indicating they're seeing strength what we're expecting the fastest revenue growth in two years. analysts are expecting 21% in

revenue growth, accelerating from 11% revenue growth, so really showing strength here for a couple reasons one is that the ad market is seen as stabilizing. and we could see that play out as well. for meta, i would also point out that google, for all of its weakness in cloud, did have strength in weakness, so i think we'll see this overall stabilization, and also use of a.i. meta has using a.i. to measurement of ads, and that can boost them as well >> you know, i expect met art to put up pretty strong results google, as well as snap both highlighted, retail as a portion of strength this last quarter. retail is 30%, 35% of meta's

rev revenue. >> are you not concerned -- what do you think was going on with snap and its weakness? >> snap is more of a brand platform, more about building awareness for brands you just don't want to be next to content that may negatively influence your brand i think there are times -- you've the, where you do see brands just paw temporarily. i don't think this is a sign of weakness for the overall ad market, but just a pause >> do you want to pick up on that >> yeah. meta has so much scale in gen general. snap has seen gains in response.

direct response you can measure their impact, whereas brand will be rough to say things more likely to fluctuate. >> steve you mentioned that it may not get the same boost as azure is at microsoft. we were both at the technology executive council yesterday. you had to stay here to hold down the fort. i'm sorry. we missed you. we thought of you. chatgpt must have been mentioned 150 times. bard, zero until i mentioned it at the end of the day that's what's benefiting microsoft here all that chatgpt using,age openai customers, that grew like crazy over the last quarter, 11 thousands opening, up to 17 thousands -- or 18,000 now, i think it is. that's huge. all of that spending going on

and all that usage and activity, that's benefiting azure. so that's to the benefit they saw this coming, and here we are, on the google side, they were not very clear how they plan to monetize a.i very unclear you can use bard now, it's okay. it's kind of wikipedia-ish it doesn't give you better inside than going to a website it will get better >> andrew, whether it's microsoft children's hospital children's hospital or google or others in the world of a.i., my sense is that they are in a phase of intense investment in these products, and none of them are actually making money on these production, are they >> well, let's bring this back to google.

io, they talked about that are 5% improvement, which is their a.i.-driven direct response algorithm that better places spend. i do think it's impacting results, improving ad revenue. that being said, there is a cost here i do think that it's minimal versus the gains we're seeing on the top line. >> that's not necessarily a gent rative. >> meta would say we've been doing a.i. a long time there's a difference from generative a.i. like chatgpt, and the idea that met ooh has been always using a.i. so i think i would say back to this whole idea of chatgpt, just the first move advantage it had in capturing ntil's imaginatio and intention is really key. >> one of the things i learned

yesterday, i learned the difference between a.i. and generative a.i i never knew. >> we've been experiencing a.i. in subtle ways for a very long time now the generative a.i. stuff is making consumers facing. that's why we're feeling it so much. >> what would it take for google to reaccelerate its cloud growth, citing the efforts of a a.i. >> optimization in terms of cloud clients that were trying to just lower compute costs. i think that came later to google there's a tough period of time as i.t. budgets gets churned, but it it was just earlier to the tool set, and they were lapping efficiency costs. >> thank you all we missed you yet.

>> now i feel like i missed out. steve, julia, andrew, thank you all. coming up, counting calories morgan stanley says the rise of weight-loss shots, will lead to less food consumption. who should benefit from all of this, other anth i guess the people, when "power lunch" returns?

the future for snack keys seems to look more stale our nest guest has two packaged food names that she's keeping an eye on pam, great to see you. whenever we reach the point that people start rolling their eyes about the hot new thing, whether it's chatgpt or the weight loss drugs, you know, it's worth remembering there will be a real impact here. we have already come to the point that nobody want to hear anymore about it, but you feel the impact will be very real. >> thanks for having me.

we do see implications for the packaged food industry for the growthen anti-obesity drugs. there was just a survey -- a study that came out recently on mounjaro, that showed a significant impact on how much people were eating for those who don't know, it's the eli lilly's obesity treatment drug >> so let's run through some of the companies, who you think is most exposed to least? >> sure. in our view, the companies that are most affected are companies with high exposure to snacking our work and the study shows that there's a significant shift

in people's behaviors. we see this as are asshaving ne impact, lose hershey, mondelesz and kellanova. also fast-food snacks. we see the companies as not positioned to benefit from this. >> what about the granddaddies of them, pepsi, frito-lay, and coke >> i covered the packaged food companies, i don't cover the beverage companies, but over time, companies will adapt, coke actually made comments on their earnings call yesterday that they're already well positioned to benefit from a shift to less calorie consumption. this was amazing to mow.

mounjaro experienced a 71% reduction of lunch intake once taking the medicine. >> the impact is very striking a 70% reduction in calories consumed at lunch. people lost 7% of their body weight, or 15 pounds within six weeks. that's happening because they're eating much fewer calories, and also eating fewer sweets and fast foods we think this will impact purchases for packaged food and how much people order. >> are these drugs rich people drugs? they're high priced. if you don't have good insurance, if you can't write big checks, i don't know how you get it >> there is a perception that these drugs are being taken by wealthy people, but actually,

according to novonordisk -- the average co-pay is about $25 out of pocket for people on the drugs. there's also as more medical studies come out supporting the health benefits of these drugs, like the recent positive chronic kidney disease study, there are -- and also potential for medicare to start reimbursing the drugs. >> pam, thank you very much. i didn't mean to catch you off-guard with that question, but you had the answer appreciate it. >> sure. still ahead, payments, planes and properties. we'll get the trade on deutsche bank, boeing and csto-ar group we're going to celebrate the new speaker.

first up, is deutsche bank, surging after beating expectation. here with the trade today, ryan bellinger, managing principal of

claro advisers >> what do you think of deutsche >> i think it faces similar headwinds, investment banking decline, you know, the ipo market is pretty much dried up, and deal volume is way down. the fees are compressed, and i think fear competition is still something that's facing a lot of these banks solve i think a lot of customers are moving their money. i think deutsche bank is just facing the headwinds. >> you say sell this one >> yes okay let's talk about boeing them, slightly lower after the company said they'll deliver fewer 737 max planes are you a buyer? >> i don't think so. not to be a buzzkill, but i don't think i'll be a contrarian

on this one. three straight quarters of sales growth slowdowns, so i don't see a lot of catalyst. they cut their 737 target for this year. if you're a contrarian, i think you could buy it, but i think in this market, i think there's better opportunity in other stocks. >> costar group, it cut its full-year outlook, but you see revenue growth here being a reason why you like it. >> i do. i'll play contrarian on this one. it's a small you are company, in the mid cap spate, and i think there might be an opportunity. 50 straight yars of growth i think that's significant i think that you should pay attention to a stock like this people will pay up for growth in this market. that's the one area that people

are willing to pay for obviously a nice opportunities to enter the stock today. >> ryan, can't thank you enough. >> have a great day. coming up, more demand goes up in armies, and we'll have more, in closing time, when we snooismt ♪ (when the day that) ♪ ♪ (lies ahead of me) ♪ ♪ ( seems impossible to face) ♪ ♪ (a lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ ♪ (lovely day) ♪ a bank that knows your business grows your business. bmo. ♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible.

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. i think that price point is more challenging as well data shows americans racked up $105 billion in credit card interest last year alone according to the consumish financial protection bureau, one in three subprime or deep subprime borrows was in persistent debt.

whatever savings and balance sheet repair a lot of consumers experienced during the pandemic seems to have washed away as they gotten back in the habit of spending more. >> and extra savings ran up. >> and inflation. >> inflation is the major influence. you have to watch autos for early signs. people these days use them in many more places than they ever did before, like grocery stores. you used to go in and pay cash not anymore. >> or you would have to bring $500 to the grocery store. one poll calculated the top states for giving gratuity see if you can guess the top five most generous states, california, followed by missouri, florida, arizona and little old rhode island.

the least generous, illinois, mississippi, south carolina, new mexico and tennessee, where the percentages are rather low. >> the low cost of living extends to tipping as well i wonder if california has more auto tips? >> or suggested tips i'll leave a tip for everyone here. thanks for watching "power lunch." >> "closing bell" starts right now. s \s. thank you, kelly i'm scott wapner right here from thousands of industry insiders have gathered, including kevin d dreyer and at least one of the most anticipated earnings reports of the season, meta, there's the stock, down today. what