i'm just going to wait this out. >> sitting cash. all right. joey t.? >> arthur j. gallagher, insurance brokerage, 52-week high today. >> j. sfwhmplt -- sfwhmplt >> invitation homes. i like it. >> congrats on the book. see you on "closing bell." ♪ ♪ thank you very much, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead. stocks are lower today with tech leading the declines. it's september after all, so here we go. google down 2%, the chips down a lot more, and raising fresh data points about concerns of the health of the economy, ism in particular. has the market become too jumpdy or is it that time of the year? intel officially launches its newest chip, but it may be too late for our market guest.

she says another game is gaining rapidly, even against nvidia. housing affordability, front and center this election season. we'll check in with a company offering 2% mortgage as rates remain high. is it a good move or too good to be true? let's start with the sell you have with dom chu. what do you make of it, dom? >> remember, coming off a record close just at the end of last week, so let's put things in context. we are at just the lower end of the very near term trading range that we have seen for the last couple of weeks across especially the s&p 500. to kelly's point, the dow is down about 1.25%, good for about a 498 point, 500 point decline. the broader large-cap s&p 500 currently sits at 5560, down 88 points, this is just about near session lows, just about 91 points in the last couple of minutes. it was the low that we have seen. even at the highs, we were still

down 25 in the s&p 500, so good for a 1.5% decline there. as technology very much a focus, the nasdaq down 450 points to the downside, 17,262. we'll take you through the details of what's driving that in a moment. from a macro perspective, crude oil prices, despite all the middle east tensions and everything else that's going on right now, geopolitically, we are seeing the worst levels for crude prices on u.s. benchmark wti going all the way back to january 8. that's how long it's been since we've seen some of those levels, going all the way back here. and brent crude, the world benchmark gauge, the lowest levels since mid december to give you an idea. growth concerns from not just the u.s. but china playing into that, as well. now, the mega cap technology trade, driving a lot of the downside today. among the biggest laggards in terms of points off the nasdaq index, apple, meta platforms,

alphabet, amazon, microsoft, all of them doing 1 to 2.5%. and then specifically it's the computer chip names. four of the biggest point drags on the nasdaq so far today. nvidia, broadcom, advanced microand qualcomm up 5 to 7% at this stage. even vanek is down 6.5%. computer chips a big focus right now, kelly. back over to you. >> i thought it was interesting because meta was up 10% last month, so they're all selling off today. dom, thank you very much. sticking with chips, let's get a closer look at the disaster of intel, which is sliding another 7% as the company launches its newest ai chip in berlin. the company is exploring strategic options with bankers. we're talking about a 60% drop in the shares since january. down nearly 70% since pat

gelsinger became ceo. let's bring in sema with a closer look. >> reporter: intel revealing its newest pc chip, present thing product was the excel senior executive who said his company has overhauled the architecture, the design, the construction. intel says the newest product is faster than its previous generation by 30% and faster than competitors that had competing products. the microsoft executive joined intel on stage sharing that co-pilot plus that will feature the newest processor. intel's newest pc chip will be featured in 80 new laptop designs across 20 manufacturers worldwide. it does come amid a flurry of

restructuring talks that you were highlighting, and intel executives are working around the clock to come up with these restructuring options to present at this month's board meeting. reuters reporting that selling altera is one option on the table. we're looking at shares down about 7% today, but it did gain about 12% last week, kelly. >> so that gain, as you said, was on the idea they might be exploring their options. what would those options be? >> reporter: looks like there are a couple different options that the company is exploring. one is selling certain parts of the business, whether it's altera, that acquisition they made in 2015. there's an opportunity to sell down system of its stake. and then there's the whole question around its foundry business, this whole idea of building domestic chips here in the u.s. they have five plants in development, but as you know, it's capital intensive, very expensive. so there's talk whether the ceo would look at selling that

business, although that would be slightly controversial, given that's been a big part of his whole strategy to turn around intel. >> and quickly, do we know why -- do they often have annual events in berlin to announce new technology? what's the back ground for today's announcement? >> sure. this is the berlin tech conference that happens annually. and intel typically is one of the companies that presents. tomorrow we'll be expecting an announcement from qualcomm. >> but pat gelsinger is not there for that snopgs >> he is not there. we will be hearing from intel's cfo tomorrow at the global tech conference, so we'll be looking for comments from intel's cfo. >> thank you. despite this launch, one shareholder says it's too late. she has a new favorite that is succeeding where intel is not. joining us now is kim forest, chief investment officer at boca

capital partners. if people can't guess what this name is, turn the tv off. why do you think amd is in such a good position now? welcome. >> it is in a good position, and today's announcement really puts the emphasis on that. you know, god bless intel, they're going after the best pc market, right? the high-end pcs. but does anybody care? nvidia is selling gpus being used in server farms. and amd is having an acquisition where it's buying up thousands of engineers that will help it sell its server chips into server environments. that's probably what they're going to be tasked to do is to make sure amd has the best data center, you know, cpu that they can have. and where is intel? >> you've been following the chip business for a couple of

decades, so when you see -- there's a sense that the ai bubble is bursting a little bit. just over the weekend, more reports about whether co-pilot is all of that effective. is that starting to affect the demand we could potentially see, whether it's for an arm you like for nvidia. the shares are down today and i wonder if there's this reset, we stockpiled a ton of these chips, but what's going to happen now for the next couple of years? >> i think you have a good point. we don't really know. we're crying before we're hurt is what we're doing as investors. we didn't know how much chips were going to be used, and we still don't know how many chips will be in demablnd. talking with investor ore yem -- oriented people, i think they expected the whole of the united states to be one big data

center. i'm talking a little bit in hyperbole. i think we're coming back to normal expectations where we have a handful of data centers that are doing this. and that they have a business where other businesses access these models. i think that's great. first of all, what we have to do is figure out what problem are we solving with ai? and is it worth the money that we think we're going to get for it? >> i detect some skepticism in your voice. that's why i wonder how you mary that being bullish on amd or the rest of them? >> i think based on my prior career, that ai really does solve some problems. now, sit really a thinking machine? no. let's just take that off the table. it's not going to create. it's going to optimize. and i think there is a lot of

optimization that can go on, both in search, which is kind of what all of this stuff that we interact with, you know, does for us. but there's bigger, better uses of combing through a company's data or looking at, you know, real world processes and having a computer figure out an optimal way to deploy whatever, right? that's where productivity comes from. >> i think that's very well said. kind of backing out and knowing that you might be in this for the long run, as you typically are. we're not talking about the next six week's time? intel was more interesting four years ago when we were first talking about it, talking about its challenges and how it's falling behind. i don't know what you do with the company now. >> well, what we're going to do is kind of hold it in our back pocket, because they still are a very big presence, you know, they're not going to go away. and i want to know what's going

to happen in the next month. just like the fed, i'm going to use september to figure out what to look at. but no, i mean, the company has to tell investors what it's going to grow up into, and is it going to change its plan? it is going to be a fab, design only pc chips? where is it going to place all of its forward momomentum? we don't know yet. it sounds like they're thinking hard and will go after the board of directors. >> quickly before we go, you think there is one area nvidia could be shut out of that you're watching very closely, what is that? >> umm, well, the server market, right? i'm looking at amd, and because nvidia sells solely to the end client through, you know, what do they call it? like dell, hp, those third party

people, i think amd will bring that back in house. you know, if you're a large company like google, you can buy directly from amd, and you'll be able to design a chip that you want. i think that's super important. and i just don't see nvidia doing that. that's not the way they have done business, and that certainly doesn't look like they're going to change. >> so amd is scaling up its engineering department, and nvidia prefers partnerships like dell, hp. interesting. >> exactly. you have to pay attention to that. this is a huge change in why amd shoots to the top of tech land in my mind. >> we'll see what the next couple of months bring. kim, thank you for your thoughts today. good to see you. kim forest with boca capital partners. september does tend to be one of the most volatile months for the market, with the s&p averaging more than 1% decline going back to 1929.

and the past few years have been awful. for more how to protect your portfolio, scan the qr code or go to cnbc.com for more. sharing of dollar tree are hitting a new 52-week low ahead of tomorrow's report. my next guest says after being growth darlings for 15 years, the dollar stores are structurally challenged. and this comes as inflation has hit lower income consumers hard. petr keith is a senior research analyst at piper jeffrey. bring me up to speed, what happened to dollar general? i was out for that. >> yeah, that was quite a dramatic earnings print. the sales came in a little lower than expected. we look at same-store sales closely. people expected something in the low 2% range, and they came in at 0.5%. so not a disaster, but on a relative basis that's disappointing.

there's a large deduction in a four-year guguidance. this is after the ceo returned to turn around the company, and some of those efforts he put in place weren't taking hold. so the stock lost about a third of the value last week. >> i had to look twice when i saw the numbers. so dollar tree you downgraded in july, but pairing them together, you could say this is the end of a structural shift towards that ex-pax and buildout. we remember the 2010s when it was so exciting and there was deal making, and it was innovative. that is over now. it's amazing to watch companies like costco and walmart just continue to do well, when the dollar tree story, dollar store story more broadly is not one that will have a happy ending. >> that's right. dollar tree, dollar general were growth darlings. you go back to the great recession, those were some of the best stocks in the s&p 500

that year. they do well when the consumer is feeling strained, historically, but right now that's the case. you mentioned inflation, that's something that is squeezing their lower income customer base. and then conversely, i think with walmart in particular, growing its e-commerce and digital capabilities, that's becoming more and more con convenience for consumers who might have traded down to the dollar store to save time or money, now they are just going to walmart. walmart put up a fabulous q2. >> i don't want to read macro into this. dollar store is collapsing, must be a sign the economy is not doing well. but i'm not sure that's what is going on here. >> if you looked at walmart, and

it's u.s.-only stores, that group sales by $4.5 billion in q2 alone. and dollar general, their total sales base for q2 is $10 billion. so you can see walmart is this giant vacuum cleaner sucking up market share. again, i think more and more shoppers are moving to e commerce. covid taught people they can get things delivered to their house. consumers are using that as the convenience play, and less so the dollar stores. >> how much juice or how much further downside do these stocks have, do you think? >> well, there could be more. one of the key reasons we down graded dollar tree back in mid july is there could be challenge regardless of who wins the presidential election. on one hand, if president trump wins, there's increased risk of terrorists. and the dollar stores are

challenged, particularly dollar tree, you're importing a lot of stuff from china. if harris wins, there is some legislation on the table called the overtime rule change. it might be blocked by the courts but it could go through with a harris victory. what that does is increases the minimum salary threshold where someone could become eligible for overtime pay. more specifically, it would go from $44,000 of income on a salary basis up to $59,000. and so if you think about dollar store managers, they usually make below $59,000 and work a lot more than 40 hours a week. so if could be a big expense head wind next year. so both could bring earnings down a lot. >> not seeing a lot of positive catalysts. we mention ed the leadership cae back to dollar general to turn things around. what would it take fighting inflation and the walmart online

behemoth, what would it take to turn these around and make them growth stories again? >> well, yeah, that's the million dollar question right now. i mean, i wish there was a simple answer. i do think this will require more investment, some of that will have to be in price. you have to be much more price competitive and find a reason right now to get customers to come to the stores. and also on that visual side, maybe you don't have a super robust e-commerce offering, but are there partnerships that you can lean into that provide more convenience to the stores. >> sounds expensive to have to do that and take price. so we'll see what they can come up with. for now, these stocks are neutral. peter, thank you for your time today and explaining the story. >> thank you, kelly. coming up, we'll get another pulsz pulse check on the consumer.

that's next. and with interest rates still above -- mortgage rates i should say above 6%, more are turning to assumable mortgages to help offset record high home prices. later, we'll look at who's taking advantage of it and why housing affordability is the biggest issues in the upcoming election. and this is another check on stocks with the nasdaq at session lows, down 2.6%. the russell 2,000 small caps are also down nearly 3% today. the dow and the s&p is down 1% to 1.5%. back after this. >> this is "the exchange" on cnbc.

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welcome back. take a look at other names like these. down more than 25% since january. my next guest's company has a lot of beauty companies as clients. for more on what's taking place with the consumer and shopping behavior here, joining us now, let's bring in the front row group's ceo. yuri, great to have you on the program. welcome. >> thank you. nice to be with you. >> not been a great year for the beauty business. what do you make of snit >> it's been a great year for beauty business on e-commerce. as a matter of fact, if you look at amazon sales alone, beauty grew about 18%, one of the

fastest growing segments, which i feel is going to continue growing as e-commerce in the u.s. grows. as of today, e-commerce is about 16% of the retail business in the u.s., and it's growing faster than the traditional retail business. >> it would seem that amazon would face the headwind -- i've ordered cosmetics sometimes where the size is off, the color is different. but enter social media. and when your favorite social influencer comes on, yeah, i'll end 20 on that, too. is that what's happening? >> that's what is happening. people try the product for the first time, and they go to the e-commerce channels and they do it through a website of a particular brand, like summer friday. but they also do that through amazon. as a matter of fact, 40% of the u.s. e-commerce is amazon. this is normal for the consumer

to use that channel. >> much like an echo of the dollar store, it might not be a case these companies are suffering from a macro issue or that people are buying beauty products, they're just buying them from amazon in large part. i'm curious if you have any data about this, which is safora taking back share these days? >> they are pretty equal in the way that they attract beauty brands to launch on both. however, safora has cracked the code in building a strong loyalty. while the consumers have been -- there's a perception in the marketplace, but they are important players. >> they have a perceived value edge or a product mix edge? >> i think it's a value edge. the perception is that there is something about them that drives

a little bit more higher brands than ulta. >> spin us forward a year or two, especially to people exposed to these stocks. estee lauder, their issues seem specific to asia and china and the weak demand. but would be the stocks to bet on for what's working in the beauty industry, broadly speaking right now, other than amazon? >> i think generally, it's very hard to predict the beauty trends. one important factor is there's way more competition in the world than there was 15 years ago. back in 2002, about five brands were launched in the ecosystem. today, as of last year, 2,000 new beauty brands were launched. all of them started with traditional distributdistributi. it's become much more competitive, so that's why those brands are going into the strong

m&a play, because they know that the consumers care more about some of the niche products. i anticipate more m&a play in this space. >> i think back to helen of troy, which had a terrible earnings quarter a couple of seasons ago and the stock was down. you look at the beauty brand, and there were names i recognize, which means they must be out of date. but my point is, as an investor, do you want your company to turn into basically a holding company -- it's almost like a vc model, being exposed to brands. there's going to be a lot of waste and things that don't pan out. but if the only choice is grab 20 things and hope that five succeed, is that a good business mod snell >> consumers are discovering new brands every day. so there will be obviously demand for all the new brands that are coming out. you mentioned summer fridays as

one of the up and coming brands. so we feel as the market matures, influencer also play a much more important role in determining the trends. so that's why like estee lauder will care more and more about the upcoming brands. house brands will always be in play, because people have different preferences. so we don't anticipate m&a to slow down. >> it's hard to have that lasting wind. you have to move quickly. thank you for joining us. the guy who makes them move quickly. appreciate your time. still to come, openai is making some major changes to its structure as it looks to raise funding at a value nation north -- valuation north of $100 billion. and southwest upgraded to outperform ahead of their investors day. the analyst expecting southwest

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> welcome back to "the exchange." i'm bertha coombs. israeli forces have been conducting raids on hamas militants in gaza for the last 24 hours. despite that, the world health organization says medics there were still able to carry out a third day of polio vaccinations for children in gaza. the w.h.o. says it's ahead of its vaccination target so far inoculating about 25% of children under 10. russian president vladamir putin just concluded a trip to mongolia. the russian president got a red carpet welcome as mongolia ignored an international arrest warrant for him on alleged war crimes.

mongolia is a signatory to the international criminal court, which has issued the warrant shortly after the invasion of ukraine began. spending by americans on travel continues to outpace prepandemic levels. new report by bank of america says that's particularly the case for international trips. overall spending is down slightly from last year, but it's still much higher than in 2019, up more than 10% per household. falling airfares are helping to support travel demand this year. kelly, seems like a lot of folks went to greece and italy. they had record tourism this summer. >> helping their economies and stock markets too, i thought. it's an interesting little e-con story in the midst of everything going on in europe. growing up is hard to do, as openai may soon find. reports are bubbling that the company is eyeing changes to its structure amid a funding round that could value it at over $100 billion and it would be difficult for this business to

mature in a nascent ai industry where sourcing information for chat bots is controversial. deidre bosa is more in today's "tech check." >> never a dull moment for openai. already a startup darling, it could welcome apple and nvidia to its cap table. that may mean it needs to re-examine its structure, which is a hybrid entity. so a nonprofit foundation and a for profit arm. a disclaimer on the website states, it would be wise to view any investment in openai in the spirit of a donation. of course, the mega cap reportedly looking to invest in this latest round. they answer to shareholders looking for returns on their investment. how do you go? it's the eternal question, how do you go from scrappy startup to mature or ration and the stakes in generative ai, higher

than ever. do you lose some of the innovation and grit but gain structure in managers? an interesting piece in "the new york times" on openai. 80% of its more than 1700 employees started after the release of chatgbt. additions that include some of the most respected people in technology like kevin wheel from facebook, crystal han from coinbase. but founders weighed in on the founder, writing many founders are told that scaling a startup means it has to switch to, what he calls manager mode. but in practice, he argues it turns out to mean hire professional fakers, let them drive the company into the ground. founders are being gas lit. kelly, this is not a new idea. the call to the founder is and

has been well and alive in technology. sam jaltman, one of the most interesting examples. he's been able to retain his hold on power, even after all the stuff we went through last fall. the question now is, as openai grows up, does the founder have to evolve, as well? i'm not sure it's an open question whether we' seeing that from sam altman. >> this makes me chuckle, professional fakers coming in from business schools. i would say is brian nickel a professional fakeer? look what he's done at taco bell, chipotle and maybe starbucks. there's a case to be made where people can shepherd these large businesses and do it very well. of course, i would have to find a tech analogy to make that more persuasive. >> i see your brian niccol and give you tim cook.

he's been able to manage. you have to delegate. it does raise a lot of questions about succession, and there's been some funny memes over the weekend. i think, you know, there's like 1% at this point on x, as well, 1% will be able to pull this off and 99% that won't be able to. >> such a fun talking point. i wonder if there needs to be a higher velocity of turnover. it's hard to find professional managers who are going to get it right. it reminds me of basketball teams and trades. a coach that gets fired from one team can have success elsewhere. but there's such a big deal made when someone comes in making big decisions. but a year or two if it doesn't work out, time to move on. >> absolutely. so we'll see. it will be an important test.

>> deidre, thanks. still to come, every name in housing is in the red today. down 5% to 7%. we'll take a closer look at the health of housing, next.

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welcome back. housing has taken center stage already this election cycle, as both candidates work to improv affordability and increase supply. my next guest is working towards the same goal, but taking a different tack, focusing on getting buyers lower rates by taking over the seller's assumed mortgage lower rate. there are a few caveats and a few potential complications. joining me to discuss is the

founder and ceo. welcome. complications, just quickly what is the downside of doing this? >> there's limited to no downside on assumable mortgages. for home buyers, they can purchase a home from the seller and use that to wind back the clock on rates by purchasing a home with a 3% mortgage, cutting the monthly payment in half. and for homeowners, it allows them to include their mortgage in their home sale to maximize their probability of being able to sell the home, because they have expanded the universe of buy who can afford it. >> this had been going on, it was a niche part of the industry, but you thought it would take off with rates where they are now. has it? >> for some context, what we see in the housing market today is when you look at the average american's income and compare that to the rising cost of home prices, interest rates, insurance, taxes, it looks as unaffordable as it was in 1982,

which is the last time that assumable mortgages were the most popular way to purchase. >> one of the problems could be if you have to pay the difference between the home's current value. it's a little complicated. >> there are second mortgages we offer for customers. we just know that those tools are hard to find and hard to understand how they're used. so buyers can use rome where the down payment is as little as 10%, and their blended rate with that first and second mortgages is often 4.5% or 4%, which is 250 basis discount. >> you said something interesting. rates have come down. a year ago is when they were at a peak. compare rates now from a year ago, are lower rates unlocking more activity, more demand in the housing market? >> no, unfortunately not. it's not been as people

anticipated. if we take the average first-time home buyer today, they will try to purchase a home, $400,000. you try to do that, it will be north of $3,000 a month. but the typical first-time home buyer makes $90,000. they're at max qualified for a $2400 monthly payment. so we're $600 apart on the monthly. that's a world apart. >> huge. and a friend of mine, jenny, is also a realtor. there's a showing time index. that means the more people were coming to visit homes. it's down 24% from a year ago. i wonder why that is. >> there's two factors here. there's a functional and emotional factor. the monthly payments are just too high for most to afford a purchase. the emotional factor, if you go back to 2021 and my brother, uncle got a 3% mortgage, why am

i so lucky to pay double what they have? >> people are frustrated. a couple of solutions, we've heard some campaign trail rhetoric about this incentive trying to increase supply. john hope bryant suggested a 40-year mortgage to bring down those monthly costs and unless home prices fall, we'll have to start talking about some kind of solutions because no one will be around to pay these prices. >> exact think. so the 40-year mortgage is one idea. another idea is the $25,000 down payment assistance. i take all of this to mean that housing affordability is weighing on the american voter's mind. >> but if you stimulate demand by making it more affordable, prices go higher, aren't they sp >> we need to expand the amount of homes and today what i see is the opposite, which is a

homeowner thinks about selling their home at $400,000, but that home may sit there 60 to 90 days because 60 million americans are priced out. so since so many from priced out, when that homeowner gets an offer, it's 30-k below the list price. so they think i might not even sell. other sellers think i don't want to sell, i don't want to have 90 days of showing. >> is the market weakening in florida? i see activity in some regions that it looks a little more like it could rebalance. >> you see more supply but more price activity cut in florida. sellers and listing agents need to understand how they can best monetize their home and differentiate it. i say look, why would -- >> if you're a buyer, there's sometimes a lag. >> so there's a lag.

that's why we announced a 45-day closing guarantee. if we do not close in 45 days, we'll pay the seller's mortgage. so that eliminates any concern the seller might have about having to make a double payment. >> i love seeing this innovation. thank you for your time and joining us today. >> thank you for having me. still to come, speaking of real estate, it's one of the few sectors in the green today. simon property, the first change since late 2009. they say simon's earnings growth should lag over the next two years. we've got more after this. you get comfortable being uncomfortable. ♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪

[inner monologue] ...always iterating. ♪♪

♪ ♪ welcome back. the fbi arresting a former top aide to new york gofr your kathy hochul this morning. it involves a chinese spy?

>> reporter: that's right. the department of justice has charged the former deputy chief of staff to kathy hochul and her husband with being unregistered agents of the chinese communist party. fbi officers arrested linda sun and her husband at their $3.5 . undisclosed agent on behalf of the people's republic of china and the china communist party at the time as a new york state official and her husband facilitated the transfer of millions of dollars in kickbacks for personal gain. the department of justice alleges that sun wielded her position of influence to promote communist party agendas, among her alleged actions here are blocking access of taiwanese representatives to new york state officials, changing new york state officer's messaging about chinese issues. arranging meeting for visiting chinese delegations and in exchange, sun received economic

benefits representatives of the chinese government including facilitation of millions of dollars in transactions for the chinese business operated by hu, also tickets to events and employments for employment for sun's cousin back in china. now with the proceeds of all this, sun and hu allegedly bought realize in new york valued at more than $4 million. $2.1 million condo in hawaii and 2024 ferrari. sun became the governor's deputy chief of staff in 2021 and left that office in the new york labor department in 2022. she was fired in 2023 over a misconduct complaint. and governor hochul's press secretary said in a statement today, this individual was hired by the executive chamber more than a decade ago. we terminated her employment in march of 2023 after discovering evidence of misconduct, immediately reported her actions to law enforcement and have assisted law enforcement throughout this process. kelly, back over to you. >> wow. so they reported her. so she must have done something to raise their suspicions then at that point?

>> yeah. you know, those large purchases, the condo in hawaii, the ferrari, we don't know exactly what the husband's business here is, but for a state employee, large purchases like that will raise eyebrows. we don't know exactly what it was that in the end tripped this alleged scheme up, but we do know that the governor's office is saying that they did report it to authorities and they were working with authorities to investigate. >> wow. and deputy chief of staff for a time as well. . thank you veryuc mh, eamon javers. "earnings exchange" after a break. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our

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with comcast business, reliability isn't just possible. it's happening. switch to reliable comcast business internet with security and get started for $49.99 a month. plus ask how to get up to a $500 prepaid card. call today! welcome back to "the exchange." we're covering cybersecurity and sporting goods. our trader is lee munson. appreciate it, lee. let's start with z scaler reports after the bell. cloud security firm. they have tight competition, maybe less so now after what happened with crowdstrike. some big leadership changes. what do you do with the stock here? >> you know, if you want -- i think the whole group runs on just full disclosure, i'm long on palo alto is different. z scaler is the smaller, up and coming, high beta way to play cybersecurity. i'm not long this stock, but i'm really rooting for it. this is a company that historically underpromises and

overdelivers. so if we overdeliver today on zscaler, i think the whole group is going to benefit. i'm very bullish going into next year with cybersecurity. >> still, 63 pe you don't see that these days. this one has the most beta. let's move from cyber stocks and talk about dick's sporting goods. they're pushing into omni channels, it could boost comps by two full points. the stock had a good year, doubled over the past 52 weeks. what do you do? >> you know, i think if you own it, you hold it. the core thing on dick's, it's a great story. everybody understands the narrative. parents are going to skimp on a vacation before they skimp on their kid's athletic equipment. here is the thing, i think a lot of what's happening with dick's, they're doing a big distribution center and they're planning expansion in texas. texas has to work because right now, we're just increasing revenues, earnings with revenues. it's a cost-cutting story now. i think going into next year,

either they make it in texas or i think the growth slows down and there could be some concerns. >> absolutely. and i just was going to say i'm impressed post-pandemic with the sports bubble we had that the stock is just coming back the way it is. okay. that brings us to hormell. that's so tired to say a spam joke. citi is positive on their turkey margin. saying whole bird prices could inflationary by november. what do you do with the stock, lee? >> look, a couple years ago they bought plantar's peanuts. the stock is down, not up double digits. that didn't help. number two, in order for hormel to get past the mid single digit growth, they have to add value. so they're not just talking about turkey prices all the time. there's a lot of head winds on this. granted, they're growing better than pepsi or other things. but until they add value i think it's just a commodity. i would go some place else.

>> munson wants better acquisitions. lee, thank you for joining us and squeezing itn. i we really appreciate it. i'll see you after a break on "power lunch."

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