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the s&p and nasdaq -- nasdaq off nearly 3%, kelly. >> i know. lots to talk about. i'm glad you're here. welcome back. >> me, too. >> good to see you. the nasdaq is the biggest decliner today, down almost 3%. fears of slowing growth the big reason for the slide. two readings on manufacturer this morning, weaker than expected. you can see bond yields lower as a result and so are shares of boeing. that's unrelated, perhaps but the 8% decline is bringing them back to their lowest level in nearly two years. wells fargo downgrading the stock to under weight. essentially a sell by another name. >> caterpillar, goldman sachs, oil company chevron, caterpillar is down 4.5%. goldman down 4%. chevron being hurt by a big drop in oil prices. you got terrible china demand, too much oil coming out of iraq, two big reasons why crude getting crushed. we're just over like a couple of cents over 70 bucks a barrel. despite, kelly, global risk ratcheting up all over the place. >> we were just at 80. you blink a moment ago, almost

up there. >> i know somebody that knows something about oil as well and he's here. >> it's a good day to have you here. also, check out shares of nvidia, which are down 8.5% right now to about 1.09. and a big reason for the nasdaq's decline. normally on big market days like today we bring on analysts, asset managers to talk about what individual investors should do now. today, we'll ask individually who we introduced you to mina, she invested 10 grand into nvidia in 2011. held it through all the ups and downs. it's worth $3.5 million. not to give away too much, it's worth $3.5 million today. we know many of you have similar stories with nvidia, stocks. instrumental on the huge market rally we have seen the past couple years. welcome. >> thank you. >> congratulations, by the way. >> thank you so much. >> can we have some money? >> yes. >> can we pass the hat around. >> we like to talk to the people -- you are the people who

know. so nvidia, say down 8% today. what do you think? >> you know, i'm a long-term investor, so it doesn't bother me because i believe in the company and the ceo. it doesn't affect me. >> it doesn't affect you, but it does. >> stock trading, if i would snot be here, i would have bought some selling puts. >> you would have sold puts today. >> yes. >> nvidia, we know, everybody loves nvidia now. you bought it in 2011. nvidia was like -- no offense to nvidia, a low-level chip maker for video game companies. was less than $1 stock, i think. no one cared about nvidia. what did you see in it? >> when i was -- by then i started the trading the stock. okay, you know what. nvidia just started gpu and it was like booming. and i said, okay, i believe in semiconductors because my background, i'm electrical engineer. >> oh, you are, wow.

>> you know what all this internet boom and iphone boom happening, so semiconductor is the way to go, but i'm just learning training. so i was using the company who has the least amount of dollar value. so if i lose money, it is okay. and since i was believing in semiconductor, okay, you know what, even though something goes wrong, i can hold that company. and that's how -- >> it was a 50 cent -- you paid 50 cents, i think, for the stock. >> yeah. the split, yeah. >> even more impressive to me than buying at 50 cents -- do you still basically expose the entire position today? >> so, i did sold something like 10% couple of weeks ago. but beside that, i'm planning to hold it. >> you brought your beautiful family here. >> thank you. >> did they ever say -- this is now 10 for 1 split. it's up to 1,000. when it was 200, 300, when were they saying, you know, mom, maybe sell? >> the short story, i was buying more nvidia stock.

and what i was doing it, i would buy and sell nvidia stock. and when the -- so i was a swing trader. so whatever profit i make from that, i buy other semiconductor stocks. so i had purchased broadcomm, applied material, micron, amd, so i had 100% semiconductor fan. >> before we broaden this out, oh by the way you were electrical engineer. did you stop doing that for other reasons and start trading, or what was that progression like? >> so, when my kids started high school, i decided, you know what, i'm going to be -- i want to raise nice family. i give up my career. so i have dedicated my entire life to the kids, 100%. i would say 110%. because my son was baseball player. around my daughter is more into performing arts. two different activity.

my husband was very busy. >> he's a cpa. >> i'm just guessing you're watching tax rates. right now you live in florida. you have no income tax rate on the state level. that's great. you do have capital gains. huge change. i'm not bringing politics into this, but i'm bringing politics into this. >> you have someone realize capital gains. >> i was going to say -- you're not worth 100 million yet, but i have faith. capital gains rates were to go up, would you look to sell now? >> you know what, i don't -- those are those things. i rely on my husband. so he keeps on telling me sell, sell, sell. >> he's furiously nodding over there off camera. >> i said, no, i'm going to keep my original investment. i'll sell whatever i purchase in 2015, 2017, all those things i'll sell. but i'm not going to sell it yet. >> it's an individual account? >> no. >> is it in your name -- that's why i'm saying, he'll be like

sell. it's my money. >> it is a joint account. but i think he has full faith in me. >> make sure he doesn't know the password. >> no, he does know the password. >> all right. let's bring in another great voice into this conversation, that is somebody well known, lead writer for the markets live at "the wall street journal," she's got a new article today titled "americans are really, really bullish on stocks." welcome. good to see you. why did you use three reallies? with meena's story, you hear stories like this, it's hard not to be bullish on equities right now. >> agree. meena, what a run. congratulations. >> thank you. >> meena has had diamond hands. this rally has minted millionaires left and right. the number of 401(k) accounts at fidelity investments that reached $1 million jumped to a record in the second quarter. so people are taking a look at their schwab accounts, fidelity accounts and are rejoicing during this rally.

i think that gives them the resolve to hang on during days like today. and maybe even buy the dip. >> it's interesting. if you look at the investor sentiment index, sort of in like with the bullish, bearish, whatever, but to your point, the amount of money both on an individual level, the faith they have is quite high. there's huge success in the gloom and doom discussion. i remember famously i think it was one of the big shorts had said, no, no, i'm worried about the societal collapse but long in the stock market. you can't short it. all of society seems has come around to that. >> it's so funny. there's a huge gap what people say and what they do. when you take a look at the data, they poured money into u.s. stock funds for eight-consecutive weeks through late august. which means during that august freak-out, they were buying. they were smashing the buy button when nvidia was down 7%, when the s&p 500 was down 3%. and i think that touches on a broader theme where individuals

are just more bullish on the stock market than they have been in the past. it's more entrenched in their finances. >> well, that's the big knock on cnbc, right? i don't know if you get this, right. i saw your video of the grocery store. all you do is cheer lead the market. bro, because stocks go up 77% of the time. so you don't have to be some market math whiz to know that the path of least resistance for equities is higher, which by the way is the reason that stocks exist. if they went down 77% of the time, there would be no stock market. >> going back 13 years, talking about the fed put and this idea that because the fed is the backstop and everyone says we wish what's the real clearing price. but because they backstop much of what happens, there's a sense that the long-term losers are nominal debt holders and beneficiaries, those exposed to equity and all the rest of it. i was only going to ask meena, everyone peak exposure to the stock market, do you with all

the success you had, trimming positions a little bit, but what's your overall feeling about the market at this point? >> i think it's very uncertain. so i'm very -- so i right now when market goes down -- long-term i'm still bullish on the market and i think if you hold the stock for 10 years and believe in the company, i don't suggest that you buy any stock. but if you believe in the company, if you believe in the ceo, and something like this an opportunity. if you have it in your least ready, you don't buy entire position but i buy little bit of that. and that's how i trade it in my account. but you have to be -- you have to have a faith on the company. >> of course. >> you had faith in nvidia, and that faith was appropriately placed. >> uh-huh. >> but meena, you could have bought intel. and intel is lower now.

than it was in 2011. why not the market leader at the time? was it because nvidia was a 5 buck stock. >> initially as i told you, i started learning trading and nvidia was -- it was a good -- ceo was good. he was amazing. so i say, you know what, this is the company i should play with. and then there was a time frame i was not trading because of the household responsibility. but then 2015, i was like, completely traded. thanks to cnbc, i was watching all the show. in the morning squawk box. in the afternoon, "closing bell." jim cramer. "power lunch." so my kids and everybody says, mom, what are you doing? but that's how i was getting my information. if there are any ceo comes, anybody, i stop and watch them. so that's how i get into the -- >> there is -- i was telling a little bit of a story about the fed backstopping everybody. but there's obviously a great

story to tell about innovation and stewardship of capital. and it's always the big tech platforms many people think are the embodiment of how easy and great those businesses were in terms of generating cash. and the big question is what comes next? and we always wonder and there always seems to be another thing and maybe it's ai and maybe it's something totally unpredictable, but that has been so rewarding for so many years now. >> it's really interesting. and individual investors i chat with, you know, they are all in on tech. tech behemoths are still the favorite stocks to buy on dips like today. i had one investor emailing me when the stock market was going crazy a month ago, i'm trying to buy more microsoft right now. people are scrambling to buy nvidia, microsoft, apple on days like today. i don't think meena is alone. i think many of these individuals do care more about the markets than they did a few years ago. it's more entrenched in their household finances. >> i think it was goldman -- you would know this. last week goldman had a note out

stocks go up because stock goes up and the hedge funds, computers will keep buying no matter what. the public caught on to that. that when there is a dip, don't worry. the computers literally and figuratively are going to save us. they have been. >> broadly speaking. >> at some point -- >> how many blow-ups, helen of troy. a lot of idiosyncratic. >> the woman or the company? i am old enough to remember, i'm going to date myself, meena, 1999, nothing could go wrong. the internet was being created. trillions spent on fiberoptics and global crossing. mci. world com. >> cisco. >> yeah. they still exist. >> these companies have profits, though. the tech giants today are not profitless companies the they way were in 2000. i think that's a key differentiator right now. >> i wonder as we have seen anecdotally, i was at a fundraising meeting they were

trying to figure out how to raise money from smaller donors. you have to go to the stock holdings. their income hasn't kept up, inflation has been high but they have made money in the stock market. >> awesome stuff. by the way, thanks for flying up and coming in. >> thank you so much. >> isn't it better in person than some zoom. >> absolutely. absolutely. thank you so much for having me. >> thank you for sharing your story. >> thank you. th thank you. >> thank you, both. appreciate it. secret tech stocks have surged this year. but financials haven't been far behind for 2024 at least. we'll drill down three keys when "power lunch" comes back after this.

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checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... and he places the trade... talk about easier investing. ♪ and welcome back to "power lunch." everybody. hope you're having a great tuesday. at least better than the stock market. that probably wouldn't be too hard. check out the s&p financials sector. now for the year, that's year to date, done great, up 20%, not far behind tech. and today, let's be optimistic, right? the first trading day of the month. we have a trio of bank topics to talk about. and so, finance of banking reporter leslie picker is here on set. starting with the intriguing story of the rise of the credit union. >> it is intriguing, brian. >> so dramatic i made that? >> i love it because there is this kind of under the radar

evolution taking place. if you recall, credit unions were established about 150 years ago in rural america. throughout the last century, credit unions have operated as nonprofits, exempt from most taxes. however, recently they've scaled to the point where they're buying billions in assets from community banks. a record trend that's become controversial. critics say credit unions tax exempt status gives them an m & a advantage and their scale no longer justifies the 21 billion subsidy they enjoy. >> there's something wrong with what are essentially nonprofit organizations buying tax paying commercial and profit making organizations. and i think it's time to re-evaluate the tax exemption that credit unions now have. because they're no longer these

self-serving or membership serving organizations. they're growing and expanding. and they're essentially commercial banks masquerading as nonprofits. >> however the credit downons say their tax exempt status allows them to charge less for loans and pay more on deposits than traditional banks. advocates doing away with the tax exempt status. would have a sizable impact on gdp. jobs and credit access. the national credit union administrator which regulates the industry that regardless of size, credit unions tend to abide by their mission. >> generally credit unions do pay more on their shared deposits. and they pay -- and they charge less on the loans that they make to consumers. i think that that's a good thing for the american consumer. >> still the m & a trend continues. harper is aware of 12 more potential deals in the works. of course, not all guaranteed to be approved, but still would be

a remarkable upside to what we've seen. >> people see it as a good option. if they behave a certain -- look, different profit sharing rules. i don't want to take a position one way or the other. but they seem to balance out the options for the banking industry. more so than trying to just ape them. maybe i'm wrong about that. >> no. that's what the credit union advocates would say. they say because of their rates and because the taxes exempt status allows them to have potentially more beneficial model for the consumer, it creates competitive pressure on the traditional banking system to keep their loan rates lower, still there's a gap usually, but to keep them lower and to pay more out on deposits as well. so they say that that competitive pressure -- now it's about a tenth of the amount of assets in the credit union industry versus the traditional banking industry. >> agriculture obviously being a long standing -- >> military. >> the military, exactly. >> the kind of feel purpose driven. okay. the next one, we couldn't get -- okay. on social media over the long weekend, people were

exploiting -- we were not doing this, by the way, the check fraud of this. people were exploiting a chase glitch to get access to thousands of dollars. we thought it was a little weird when we went to do the card and to get to the atm, they were like, oh, you have to go check your phone or whatever for an access code. and i didn't know if that was related to -- any way. tell us the story. >> no idea what you're talking about. >> just hear it from leslie. >> thank you tiktok. just because you see it on tiktok does not mean you should try it. this is the tide pod challenge but for bank fraud. in that trend that went viral on tiktok, users deposited fake checks and withdrew cash immediatelyics ploiting what turned out the be a temporary glitch in chase atms. chase spokesperson told cnbc, quote, we're aware of this incident. it's been addressed regardless of what you seen nine. deposits a fraudulent excellent check and withdrawing is fraud. those took advantage of the accounts were locked out.

this is no catch me if you can type of bank fraud because many of those who did it posted about it on social media. in other words, they will most certainly be caught as chase partners with law enforcement on any fraud-related issue. so have a paper trail or social media trail. >> i do feel almost bad for some people who got swept up. i know i shouldn't say that. >> why? these are people that had accounts? >> yeah. >> yes, yes. >> you're committing fraud on your own bank on your own account? every atm has a camera. and you just logged into your own account? >> but they posted about it any way. >> and then you post about it. >> it's not that hard to find them. >> it's like the tide pods but way worse. >> stealing cars. here is how you take a hyundai. do these wires. >> i can't -- i just can't imagine it. >> no one cares. nobody is afraid of penalties. that's what it is. >> no. i think you get swept up and go, oh my gosh -- >> swept up. >> you do it and see if it works. >> you get swept up in sports

and music. you don't get swept up in bank fraud. >> they thought it was free money. people were licking poles during coronavirus because it was the tiktok thing. they were eating tide pods and now committing bank fraud. >> again, if you experienced like we did a weird extra confirmation code to access your atm, now we know why. jp morgan downgrade action. >> there was a deutsche bank note out today. the gist of that downgrade, according to deutsche bank, a lot of the good news has already been priced into the stock. the note flags j.p. morning's premium valuation. look at that. the firm trades at 2.4 times tangible book compared to 1.6 times the megabank peers. the analysts say the premium makes sense given the upside potential for net interest income, solid trading recovery with investment banking and solid credit. however, they say in the note that it's, quote, hard for us to see further multiple expansion from here.

in the same note, deutsche bank upgraded wells fargo and bank of america each to a buy. for wells, investors to buy in the recent weakness of that stock, which has been due to lowered net interest income outlook and uncertainty surrounding the firm's regulatory asset cap. however, the analysts say, credit cards should provide a boost in the future. as for bank of america, that's also a valuation play with deutsche bank telling investors to capitalize on the pressure on bac from berkshire hathaways selling of those shares. >> love a good -- >> technical, yes potential arbitrage. >> thank you. september trading off on the wrong foot. our trader has a defensive play also under the radar -- but it's also under the radar. "market navigator" next.

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it's one day, okay. but the nasdaq is down 547 points. 3%. this is one of the worst days of the year for big tech. i'm not exactly sure if it's top three. i'm sure it's close. we'll know by the end of the day. either way, not a good day. s&p and dow also down. dow is, quote, only if you're on the radio doing air quotes with my hands, down 1.3%. so, as we start off, what is seasonally a pretty tough month, we went looking for kind of a more defensive name. and our candidate today might help you, clean up your portfolio. with both strong fundamentals and strong technicals, blended together. todd gordon is founder of inside edge capital, cnbc pro contributor. you saw the puns. clean up, blend, shark ninja. >> brian, that was a wonderful intro. thank you for having me, guys.

>> i know. >> that was well done. yeah, so this is a name that we just added to our portfolio. and i think collectively if we talk about the reasons that maybe perhaps we're re-entering the recession discussion, you know, it's easy to write off obviously tech book consumer scratch and earn. if you look under the hood, there are some good names. shark ninja, as you said, a household appliance company. they run two different divisions. ninja and shark. ninja is food prep, blenders, ice cream makers. my wife has one, she loves it. making protein shakes for the kids. shark is vacuums, hair dry doctorsers competing against dyson, very expensive. so, they have aggressive growth plans. they partnered with dave beckham as a brand ambassador. they just beat q2 earnings, they crushed it. they broke through a big old 2.5 month range. doesn't care about the broader market volatility we saw in august. they beat expectations by 19% on

eps. they beat on revenue. they grew by 50% quarter over quarter on those earnings. they grew revenues 31% from the same quarter last year. they're getting upgrades across the board. the breakout was about 92.5 on the chart. we broke out on good volume. this is after earnings. so we can hold the 92.5 level, i would like to increase the allocation of my portfolio. it's only 1%. i added right at the end of the august. i would like to continue going with it. but look under the hood of the consumer discretionary names. it's just the large cap that's keeping this sector under weight. there are some strong names that might counter the recession argument. >> yeah. to your point, dyson, an amazing company. premium priced, not saying a knock, compliment to dyson. shark ninja makes the shark. the hand held vacuum cleaner, among other things. sounds like you and your wife like the price point, which is

not the dyson price point. >> and its -- listen, i don't want to bad mouth dyson. >> we're not. it's a premium product. >> they're a premium product, but they broke on me. and shark ninja is interesting. they have a very aggressive organic growth strategy. they're really permeating the social media networks. they've done this organically. you know, i'm not trying to talk this company up like this is an absolute home run. but i think in a bumpy tape, counter to the recession discussion that so many are having, this company is right in the highs. and if we can get some stability in the market, i think we can -- i think we might be able to see higher prices here. >> 13 billion market cap. needham, massachusetts, got to be one of the top five best named companies. if there was a shark that was also a ninja, that would be sweet. todd gordon, thank you. >> thanks, brian. on deck, we'll dig into crude oil because risk rat ratcheting up in many parts of the world, but oil keeps going

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powering possibilities. ♪ welcome back, everybody. stocks are not the only thing down today. oil is also falling. and it's really for a lot of reasons. let 's dive into it. pippa stevens is here. >> we're about to get under $70. the low today was 70.13. there are a number of things driving this. today it's all about china. troubling trifecta of data out of china. weak housing numbers. not good for oil demand. then the passenger car vehicle sales. and it shows growing momentum in evs and hybrids after in july, new energy vehicles are more than 50% of total sales for the first time. >> in china. >> in china, yes. >> definitely not here. >> no. but in china -- >> they have the subsidies in china, of course. they are gaining on ice

vehicles. the weak manufacturing data for august at a six-month low and contracting faster than july. and so, there's really not a lot to like here in the market. these summer driving season is now over. we have opec plus returning those barrels starting next month. so really a complete lack of bullish catalysts. >> we'll see if they return those barrels. we'll see. they have a big meeting december 1st. we'll be there. you have a lot of other stuff. i don't want to get into the weeds. libya has issues. iraq got reprimanded by opec for overproduces. >> wow. >> a toxic combo of like slowing down in china. their economy -- >> plus supply leakage. >> china is not good. i don't think we call a disaster. and more supply. >> exactly. then we saw that brief, you know, fears around libyan production but now bloomberg is reporting that a deal is imminent to bring those 1.2 million barrels per day back. and so it just seems like if there's no obvious upside catalyst here, people are on the sidelines and not willing to get in this trade. >> i think the upside catalyst

would be if there was one, would be does opec change its current stance? they've done it before. and remember, the saudis are kind of doing their own cuts along with russia. outside of what opec is doing. >> yeah. >> so there is -- the saudis have free reign to change their mind. >> i think what's important there is are they going to change from a price per spigotive to market share perspective. we want to keep our market share. they took 6 billion barrels off the market. the u.s., guyana and brazil came in and filled that. they did cede some of their market share. if they say price smr important, we'll see. >> i think that's well said. >> his royal highness should come on the show. >> let's do it. >> ask him directly. >> pippa, thanks. time for today's three stock lunch. here with our trades, cnbc contributor michael farr with high tower advisers. michael, great to see you again. let's start with the stock we haven't gotten to yet despite a huge drop today weighing on the

dow and it's boeing down 8%, biggest drop in almost two years all on a downgrade on wells fargo, blaming cash flow concerns. what do you do with this beleaguered name? >> you know, kelly, i think 100 years from now they will be studying boeing on how not to run a company and please don't let this happen to you. i mean, you talk about a confluence of really bad luck and bad decisions on the part of management. and the stock is dropping down $100 a share from 260 to 160 more or less since the beginning of the year this year. it's been a disaster. and it doesn't look like with starliner and other things that they're getting a second wind. kelly, ortberg with his engineering background might be the guy who can turn it around. it's a turn around -- geez f you can screw up a duopoly, you have big problems.

i stayed away from this stock for five year. the five-year return is horrible. i continue to sell it. put your money somewhere where it can go up sometime soon. >> maybe that's micron, michael, investors losing money in micron again today. stock nearing the lowest of the year. $144 stock earlier this year. it's back to 88. what are we doing with mu? >> it's getting there, brian. it's really getting there. it's getting killed with all of the chips. it's getting killed with the tech. i mean, we're seeing all of them get crushed today. nasdaq down so much. micron is so deeply cyclical. i can't buy it because it's a buy/sell stock. you have to buy this stock with an idea that you're going to sell it at the right time. you know, $100 billion in market cap. ten times earnings. the numbers aren't awful. okay. you can be okay to trade it after the selloff. but it's not one i don't think that suits a portfolio of a long-term investor and not a conservative investor. >> all right.

not for it. what about redfin, michael? this is not one that comes up a lot. but we have this upgrade from b. riley up half a percent today. they're betting on profit and growth in a shifting market. what is going on with the housing market and all of the housing etf stocks trading poorly today. >> well, they are. they're following the whole market down. you know, i think, kelly, if you look at mortgage rates historically, they trade about 185 to 190 bases points over the 10-year, over the long term. so maybe if the 10-year treasury stays where it is, you get to 5.75. people are holding out unrealistic to return to 3% mort g gauge rates. i don't see that happening. they don't want to sell and they don't want to trade. we have pressure on the market. redfin is a really cool idea. really cool idea. it is the kind of no load index

fund cheaper approach to real estate and retail real estate residential real estate may work. but they don't have earnings until 2028. so that's a no for me. >> wow. >> if you wanted to speculate with it. i know. they're not making money. they're losing money still. >> you think it will be four years? >> people have to chair the paradigm. >> is the company saying it will be four years? they've been around for a while. >> no, it is. and that's according to fax set. so that's the consensus analysts out there that cover the stock saying it will be 2028 before they have a profit. that's hard to buy. maybe you get a great growth company and make big money by taking big risk. i'll get rich the old fashion way and let my money just kind of accumulate and grow in the stock market. not trade it too much and not pay too much in taxes. i think every one of the names today is kind of going to be a trade and going to be a long

slog. >> got to correct you, michael. making money the old fashion way is inheriting it. >> yeah. but i've screwed that one up, brian. i'm still hoping for that great uncle, buddy. i'm waiting to find out that he's out there somewhere, you know. >> when he sells the b & o railroad and three hotels he owns on baltic, you'll be just fine. you'll get his monocle clerks. michael farr, thank you. let's get over to bertha coombs with a cnbc news update. >> the state department says the push for a cease-fire agreement in gaza is not over. and the u.s. will continue to engage with regional partners to finalize a deal. the pressure to reach a deal has only heightened with protests breaking out in israel after the bodies of six hostages were recovered from a tunnel in gaza over the weekend. including the remains of israeli-american hersh goldberg-polin. at least 12 people died after a boat carrying dozens of migrants

capsized today in the english channel. rescue operations are under way to find two people who are still missing. uk says more than 2,000 people have arrived in britain on small boats over the past week as the government struggles to tackle illegal immigration. and a world health organization review of 63 studies finds that there is no link between cell phone use and brain cancer. the panel of experts looked into whether the exposure to radio frequencies commonly used by phones should lead to the disease. and they found it did not increase the risk, even with prolonged use of ten years or more. of course these days, brian, i don't think anybody puts a phone to their ear anymore. everybody has pods. >> true. >> only while driving, bertha. you see that on the turnpike. a lot. people watching. >> i see that. >> while driving. watching. >> oh, that's not a good sign. >> no. >> going to be a worse problem

than -- >> thank you very much. all right. disney, yankee, espn stations off of directv over a fight over their contract. leaving millions of viewers in the dark as college football and nfl football kick off on thursday. we'll get the latest on this big money media fight when "power lunch" returns. >> announcer: crypto watch is sponsored by grayscale.

♪ all right. welcome back to "power lunch." shares of disney are a little bit lower today -- by the way, the entire market is down today. but disney is also in a dispute with directv, pulling its channels from direct/v, preventing customers of directv from watching college football. tonight may be the finale of "the bachelorette." julia boorstin has been following this story and spoke earlier to the head of espn. julia? >> well, brian, the middle of the u.s. open, ahead of sunday's college football game and before the nfl season opener, disney

pulled its abc stations, espn and other networks from directv's more than 11 million satellite subscribers on sunday. now the contract dispute between disney and directv speaks to disney's focus on streaming and cord cutting. it is looking to offer smaller and cheaper bundles to their customers. directv says, quote, disney is again taking an anti-consumer approach demanding that customers from directv and other distributors be forced to pay for channels they don't watch. espn chairperson telling me that they have been flexible and what directv says is flat out false. >> we never want to blackout. it's not good for either side. it's not good for the customer, of course. we did everything we could. we worked very hard to reach agreement. we were unable to get there. and we were unable to get there because directv has refused to acknowledge or recognize the value of our content.

>> with "monday night football" and espn less than a week away, the pressure is on both sides to get this deal done. so, the real question is whether directv ends up adopting a deal similar to what charter and disney agreed to last year. that incorporates access to the pressure is on. an agreement that was agreed to last year has streaming service to charter customers. >> there's many things about this which are interesting, but the fact that the directv people had been through this before. the way the companies are accusing each other of hardball, and the net outcome, does it just push people toward the streaming product? >> everyone loses, right? >> but does disney lose? do people say, let's avoid the

drama and just jump to the streaming. >> where else would customers go? the longer it drags out the more likely directv customers will look for other options. the live sports are must-see this time of year. that's what's driving this negotiation. the fact that there are skinnier bundles available, there are skinnier streaming options. there's also a question of sports, right? venue, which is the streaming sports bundle that espn was supposed to be part of, it is not launching this year, but there's an espn dreck-to-consumer service that the flagship is what they're calling it so far. that's set to launch a year from now. a year from now there will be even more option for cord cutters. >> it seems like every time someone is mentionic a new cheap

streaming bundle. > e k up, julia. >>thmajor averages are on pace for the worst day in about a month since august 5th. nasdaq is down about 3%. we'll be right back. s going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

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welcome back. the nasdaq is under pressure, as we see all the averages, but the nasdaq in particular. nvidia was down about 7%, and alphabet down as well. deirdre bosa has more. what can you tell us? >> the stock is underperforming, but zoom out. you can see it's been a laggard for months. over the last three months alphabet shares lower more than 9%. the rest of the magnificent 7

have fared better. the catalyst for today's move was a morgan stanley note that lowered the target on alphabet. in it, they look at different remedy scenarios in the doj/google ruling, and in the long term it will stay in the range bound. that said the regulatory pressure, kelly, it's only set to increase in the weeks ahead. tomorrow google and doj must submit a schedule for the proceedings, and appear for a status hearing next week. the most extreme scenario is a breakup of google's business. that isn't seen as likely, but investors are certainly getting over consideration that must be spent to fight these battles. that's part of the reason you're seeing the stock down so much today. >> will it be overtaken?

where is the best restaurant near me? google. >> it's the existential question for google search, that is certainly factors into it. that's what investors are fearful of. >> thank you very much. dow is down more than 600 days. >> it's not a good day. >> it's not horrible, but not a great start for september. we'll see you tomorrow. >> thank you for being here. "closing bell" starts now. ♪ guys, thanks so much. welcome to "closing bell." i'm scott wapner. the center of the action right now, the september start for stocks is not a good one, as the major averaging remain under pressure here. the scorecard with 60 minute to say go in regulation, dow is down by more than 600 points, but the big story is at the bottom of the list. it's tech, nasdaq wn