we're stacked. >> apple, i'm using props. big week next week sdpr cisco. >> midstream company kinetic, 8% yield. >> be patient, stay in cash, two year. >> i'll see you in a couple of hours on "closing bell." "the exchange" is now. thank you very much, scott. and welcome to "the exchange." i'm kelly evans and here is what's ahead. stocks are heading for their worst week in a year after this morning's mixed jobs report, and plunging bond yields are the latest move, with the next rate decision just 12 days away. exactly how far and fast will they go? we'll bring you the latest headlines and debate. plus, deal or no deal. the biden administration arguing that nippon's takeover of u.s. steel would create national security risks. we'll speak with two former

commerce secretaries. and apple is on track for its worst week since april and we have a preview of their unveiling. dom? >> it didn't look like a sell-off, but it's gained some steam. we are just off the session lows, worst levels of the day so far. you may recall yesterday i've told you about this 50-day moving average in the s&p 500 index, and it stays at just around 5505. we are well below that level right now. so we've cleared to the downside that 50-day moving average price. 5407 is our current level, about 1.75% decline. at the lows we were down roughly 99 points, positive by 19 at the highs. there is your range, so tilting toward the bottom of the range. the dow industrial was off about 1%, nearly 400 points to the downside. and the tech heavier nasdaq pacing the losses, down 2.5%,

worth 442 points to 616683 for the nasdaq composite composite in next. if you take a look at this week, there haven't been that many bright spots. the only bright spot among all 11 sectors over the last week in the s&p has been the consumer staples trade, eking out a fractional gain. the worst performing has been the economically sensitive sectors like energy down 5.5% and technology has been the real standout to the downside from a sector perspective, down about 7% to 8% there. speaking of energy trade, we had one point today with wti crude benchmark currently below $70. what i'm showing you is a two-year chart, because at this current level, at the lows today, you would have to go all the way back to june of 2023 to see a lower level for crude prices as economic concerns both here and abroad and places like china and supply concerns also

push those prices lower. so keep an eye on that particular economic indicator. and then the technology downside has been led in large part by the chip stocks, and today the real downside standout has been broadcom on the heels of its better than expected earnings report, but a more disappointing outlook for some investors with regard to what it's going to see in the current quarter. down 10%, super micro down 7%, nvidia down 5%, advanced micro, the sector etf is down 4.5%. so computer chips, it seems like we talk about them a lot, but they are the epicenter of what's going on with a lot of that technology trade. so keep an eye on chips. i'll send things back over to you. >> i liked chris' point, no beat, no raise, you're breaking my heart. a lot of investors feel the same way. the payrolls climbing 142,000 in august, was below expectations of 161,000. the unemployment rate fell, but

the fed is still expected to cut rates. the question for investors is by how much, with odds almost equally split for a 25 versus 50 basis point cut, and fred waller is open to a bigger one. i have a chief economist, and, of course, our own steve liesman is here. welcome to all of you. steve, not to gloss over the jobs report, but what waller said has taken the markets by storm. >> to an extent. the market has been kind of all over the place today, and i think it reflects the mixed nature of this report today. i think that a look at the intraday on the two year is a good example, the markets pushed them higher, lower, higher, that chart if you go back a little bit more than that, if you could go back a little earlier in the morning, you can see the reaction -- there it is, that spike right there on the two

year. a real seesaw. and i think the story is we know for sure, given the interview, there are people who want to do more from a longer term or strategic basis, but tactically they may not be able to pull it off. i'm not sure we have enough data. if the default case was 25, you have a retail sales report that morning of the meeting. maybe the jobless claims, if they start to crank up. >> that's what's so interesting t jobless claims have been fine. we saw this morning the unemployment rate actually fell. we all know it can wiggle around, and still be on an upward trend. some economists are making the case we're trying to absorb all the entrants into the labor market but it's not acting like a labor market that's breaking down. >> it is not breaking down but skating on thin ice, and i think that's the part that jay powell is most concerned about. he sees the window for his

legacy on nailing a soft landing as narrowing as we move into the fourth quarter, given the pace of hiring we saw as well this week. it is more consistent with a recession or higher unemployment rates than we've seen. we know rules are meant to be broken, but there is weakening in the labor market. when you look at the three-month moving average on job gains at 116,000, that's within the range of not different from zero in terms of significance. and i think that's are the issues, when you also look at the big three that have been driving job gains, state and local government, leisure and hospitality, and health care and social assistance, those three sectors also had major losses in the number of job openings at the end of july. and so that begs the question, what is going to be the momentum going forward given that the relay race that had been going on with the least interest rate

sensitive sectors, is there a risk that we now see a bigger pinch in employment as we go into the fourth quarter. that is the risk. the fed, it's a heavy lift to get to 50 basis points, i agree with steve. i think it's going to be a week, the retail sales report, just given the vehicle sales alone. also, i think there's some broader weakness out there. it's a heavy lift to get to 50 basis points, but i still think there will be cuts. i think powell would like to see 50, the question is whether you can corral the cats. >> 12 days is not a lot of time. steve, how are you thinking about this and what it means for the market? >> first of all, i do think we're closer to full employment than not, which is, in fact -- powell reminded us about the dual mandate. we didn't get a happy pricing portion of the dual mandate because monthly average earnings actually rose a bit more than expected. so that's not all that friendly. i think what happens now is it's very difficult for markets to

figure out what's going on. as you pointed out with the two-year yields bouncing all over the place, they were down, they were flat, down five. when you can't price relatively risk-free assets, how do you expect to price risky assets? right now with the next rate being a coin flip, half the people are going to be disappointed one way or the other. >> what is the significance of bouncing around? let's just take the ten-year, we're below $370 this morning, that's bringing mortgage rates down closer to 6%, we could be headed below that territory soon. that clear move tells you what exactly for equities? is it supportive or are we back into the bad news risk off paradigm? >> i think we're back to bad news being bad news and good news being good news. we priced in rate cuts. the question is not whether we're getting rate cuts, it's how much. we've hit that paradigm. the idea that rates are coming down a little bit, sometimes

that's the question of why. and i think they're coming down now not for particularly a good reason, it's because we're concerned about the economy. and that's got other ramifications for the stock market, which, by the way, is still pricing at double-digit earnings gains. >> which has to be the simple explanation, if you said how is the market doing and the nasdaq is down 2.5%, why isn't it more supportive? because there's this idea that this is a slowing economy. can i ask you about the beverage curve? do you feel like we could delve into that? if we start seeing -- is it worth spending some time on it or no? is it just one of these kind of data points that tell us what we already know? >> i think it's really confirming what we already know. i think powell was very clear laying down the gauntlet and saying he's now hedging against additional weakening in the labor market. waller has moved closer to him. i'm not sure he's on board for a half percent cut at the next

meeting, but by the end of the year, my view is if you're going to cut a half percent and you already discussed a rate cut in july, why not go ahead and do it and it will give it that not so panicky look that the fed wants. that would be my suggestion, but i don't get to vote on rates. and i think there's a real issue here on jay powell really, not being an economist, humility is a better part of valor, and i'm not being an economist and seeing how many times things have gone wrong, i think he's really worried now on the downside on unemployment. whether he's right or not is a different issue. this is his legacy, too. we're going into his legacy and he really wants to nail that soft landing, and there's an argument that the ice is thinning. it's still not falling apart. but there's a tailwind that's going away. this relay race was really important, where less interest

rate sectors carried the economy. they're not doing that anymore. and there's been a hesitation in the pent-up demand of people jumping into the mortgage market because they're waiting for rate cuts and lower rates, and it's still more expensive to buy a home regardless of rates because home insurance has gone up. >> steve liesman, he's got to protect his legacy by not having the economy fall apart, i can't shake the memory of his exchange with -- i can't remember who it was on capitol hill, probably back in 2022 when they first started hiking rates. he was asked about the significance of paul volker's legacy, and he said this is the most important thing to me. he said he was the best fed official that ever lived. do you still think he would rather risk a bit of an economic stumble in order to not be the guy who let inflation remain part of the landscape? >> no, because i think that's what the shift and transition is

about. when you transition to worrying about one side of the mandate, now you're worried about the other side. i think he's been very clear about what it is that he's worried about now, and that is the employment side. >> he's being more dovish these days? >> no doubt about it. and i think waller is actually ahead of where powell is. i disagree a little bit on that. i think waller sounds a little more dovish than even the chairman. i've described the fed today as a bad fashion retailer. they have yesterday's rates on the shelves. and that's sort of just taking off what goalsby said. >> why didn't he dissent in july? >> well, first of all, because -- >> he's not voting. >> waller could have dissented. that's what i thought the question was. >> he was not going to do that. >> because the rhetorical shift has imparted a lot of easing into the market, in a way that

doesn't matter for a while, at least, if the fed cuts rates. i think what's really interesting here, looking at the market trade, i think it's trading for a bunch of reasons, but it is not trading in a way that makes me think the market believes the fed can make it all better. that's really interesting to me. the more the market goes down, the more that you see these yields decline, the more it tells me that the market thinks the fed is too far behind the curve and needs to really accelerate here to get in front of it to a point -- i've described it, ujust to use a lousy metaphor, if you're the guy spotting the gymnast, you can't be two steps back when that gymnast falls on the beam. you've got to be there. the fed is 240 basis point steps from being there to catch the gymnast. >> do you think that bond yields are pushing them closer?

in other words, we say the bond yields are falling because they're not reacting. could they be falling because they think they are going to ultimately? >> if i'm not mistaken, you need the fed to cut rates for the prime rate to call. >> of course. >> so to the extent you have people whose rates are tied to the prime rate, you impart love to the private equity markets, but don't impart that to average consumers. >> steve, as we were reminded by dom at the top of the hour, broadcom's miss has it down 10% because all of the hopes that nvidia didn't quite meet last week on whether the ai cycle would continue the investment steam into 2025, now people have to grapple with that. is the nasdaq down today because of the jobs report and simply because the ai hype might be fizzling out somewhat? >> yes, but i'll bring in a different analogy. we've had thin ice and a gymnast. i'm going to say we've got pole

vaulters. we've ratcheted the bar up so high for our favorite ai stocks and mega cap tech stocks that it becomes tougher and tougher for them to exceed the market's expectations. think about nvidia. one year ago, august of '23, they beat their estimate by about 31%. it was 31%, then 19%, then 11%, then 5%. i may be off on my numbers. so each time, they beat -- they hopped over the bar, but never by as much. and this is what's going on, when you're priced to perfection, you have to deliver perfection. when you don't deliver perfection, you get hit hard. and when you have eight stocks, and i'm including broadcom as the eighth, making up about a third of the s&p 500 and about half of the nasdaq 100, if these stocks slip, it doesn't really matter. this is the problem, the seven or eight stocks brought up the over 493 or 492, and they're so

heavily weighted, if they start to go down, it really doesn't matter as much what the other stocks are doing because they're so important. >> i think that's fair. i think it's an important part of what's going on in the market. diane, i'll give you the last word. what now? >> i actually think there's a strong argument for half percent cut. we'll see if they get there. it really is going to be about powell, whether or not he can corral the cats to get to his side. i do agree waller is with him now. i'm a little more concerned about whether or not waller is willing to go the whole 50 at the next meeting. but at the end of the day, if you're going to cut and you thought about cutting in july, why not do 50 right now? >> and one thing we know for sure, steve liesman, if they are thinking of that on any level, we're going to hear about it next week. >> i'm going to say something out of school a little bit. i think it's important where waller is. >> totally. >> waller is a trump appointee. waller led the charge on higher

rates. he also led the charge on the vacancy unemployment rate, telling us that we could bring down unemployment, start bringing down inflation without ratcheting up unemployment. he's as close as we have to, like, a thought or monetary policy leader on the fed right now. and i think that if the fed goes 50 in september and waller, the trump appointee is with had him, i think it will offset some of the political storm that will happen in any event, even if it's 25. >> it's going to be a fun one, i think, regardless. thank you all. really appreciate it. coming up, nippon's steel's proposed $15 billion takeover of u.s. steel would create national security risks, according to the biden administration. after the break, we'll talk to two former secretaries, including the former amazobassa to china. the stocks are on pace for the worst week in over a year. 371, the latest read on the

ten-year yield. we're back after this. this i"t ehas hexcnge" on cnbc. ♪ (girl) wooo! ♪ ♪

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threatening to shutter multiple mills if the biden administration prevents its takeover by nippon steel. cleveland-cliffs is stepping in saying it will buy the mills if the white house blocks the deal. the problem won't end in november. vice president harris she wants u.s. steel to remain american owned and operated. joining us now to discuss, carlos gutierrez, former commerce secretary under president george w. bush, and former secretary under president obama. gentlemen, welcome to you both, and really appreciate you making the time. >> thank you. >> it's a complex issue, and i wonder if its name were something other than u.s. steel, if this would be a story. secretary gutierrez, on the merits, should this deal be blocked? >> no. i don't see the economic logic, i don't see the national security logic. there is a political logic in the sense that we are in an election year, united steelworkers have come out

against the deal, and i don't understand that, either. because without the deal, this will be devastating to the company and to workers. so i think it's a very bad idea. i think it's bad policy. >> do you, though, acknowledge that there's probably been plenty of precedence people are worried about where a foreign company takes over an american one, jobs are loss, factories are shuttered, et cetera? >> well, you know, it's interesting, because the purpose of tariffs is to tell companies overseas, look, we don't want you to export and dump. come in and invest in our country. and that's what they're trying to do. that's what tariffs are meant to do. you know, two out of the four large competitors in the u.s. have headquarters in india. so it's not like this is something new. we're thinking about steel as if we were in the 1950s.

it reminds me of the godfather ii, where he said we're bigger than u.s. steel. that was the 1950s. there's no logic to it and i think it's very unfortunate, and it sends a terrible message to our trading partners and allies. >> ambassador, i was thinking about car production, companies like toyota, who have plenty of factories and facilities in the u.s. in fact, a lot of foreign carmakers are some of the biggest employers, even airbus. there's plenty of precedent for a foreign company to have major american operations and employ lots of people, is there not? >> for sure. so many that these foreign companies now are establishing manufacturing facilities in the united states to be closer to customers, cut down on transportation costs, et cetera. i agree with secretary gutierrez that the claim of concern about national security is pretty tenuous. the administration is able to

block foreign takeovers, purchases of u.s. companies on the grounds of national security or if the company is being purchased by an entity located in a country that's somewhat adverse to the united states, whether it's china or russia or so forth. but here u.s. steel is in very bad financial shape, and nippon steel has proposed to invest billions of dollars to keep many of these factories open, that otherwise would close, and maintain u.s. jobs. there is a concern about the unions, by the unions, the united steelworkers, they're afraid that nippon steel might close down some of the facilities where there are unionized workers, because u.s. steel uses two types of methods to produce steel. using iron ore or furnaces that

actually use electricity to reuse steel, almost like scrap steel. and nippon steel probably would want to increase the use of those non big furnaces, the nonunionized factories, and that's a concern to the ironworkers, and perhaps, with all this opposition to the sale, perhaps that will give an incentive for nippon steel to provide greater guarantees that these facilities with union workers will not be closed down, and perhaps if the union agrees to the deal, then the politicians will give the green light. >> or maybe, secretary gutierrez, the workers sense exactly what you said, the economics are moving toward these different kinds of mills using recycled technology and they wouldn't employ as many people as they had in the past, no matter what promises the company might make. we've seen the promises and guarantees, there were deals

with tiktok. i mean, plenty of things happen in the heat of the moment that are more kind of politics than reality. >> yeah, that's a good point. you know, what's going to happen will happen under u.s. steel or anybody else. the company needs help. they have steel mills that were built in the 1930s and we're competing with china with relatively new steel mills. so they need the money, they need the help. and without it, they're going to lose workers, anyway. without it, the company is in trouble. so we want to save this iconic u.s. company, u.s. steel. i think this nippon deal is probably the best way to do it. >> ambassador, we reached out to several pennsylvania officials, governors, congressmen, they weren't super eager to come on and talk about this, which tells you it's probably a complicated reality. if you're in the interest of

keeping these pennsylvania jobs, what do you think is the clearest way to do so? >> well, let's hope that the parties, whether it's the unions and nippon steel, can reach an agreement that provides some assurances about keeping some of these facilities open. it's more than just the employees that we're talking about. we're also talking about retirees who depend on the pensions given out by u.s. steel, and obviously that would be taken over by nippon steel. but as secretary gutierrez says, and as you have pointed out, with ongoing technology, even if we keep -- even if they keep the unionized plants in operation, over time, greater productivity will seen fewer employees are necessary to do the same type of work, put out the same amount of steel that is now being done. >> and i think we can all understand if it were a chinese takeover, russia, some country a bit more at odds. when it's japan, as we're supposedly friendly with, you

think that gets more of a pass. gentlemen, we'll leave it there for now and see what more we hear from the administration in the next week. thank you for your time. still to come, if you need some insurance during a time when tech is facing volatility, after the break we'll show you one software term today. our mystery chart. stocks remain off session lows, firmly in the red, with the nasdaq having its worst week since april. ekindow and s&p, their worst we sce march of 2023. we're back after a quick break. it's all the things that keep this world turning. it's the go-tos that keep us 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 to "the exchange," where we're deep in the red today, in part because of macro, the jobs report this morning, raising some concerns job growth is slowing, also because of some stock-specific reasons. broadcom's earnings, down 10%, we were down 440 on the dow, worst performer, the nasdaq. ten-year did go below 370. some of the movers this hour, we're watching, it includes two stories in the ev space. nio heading higher, while tesla is down 6%, coming off a big day yesterday after sharing self-driving plans, and some

software moves as well. insurance software developer guidewire jumping on a strong beat, up nearly 12%. and automation software firm uipath down lower. docusign up after strong subscription growth. the judge in the trump hush money trial has delayed sentencing of the former president until after the november election. it had been scheduled for september 18th. in the statement, judge merchan said he will postpone until after the election, when he is president-elect or a private citizen. toyota is reportedly cutting its electric vehicle production by a third, becoming the latest automaker to roll back plans as sales decline. nikkei reports that toyota plans to built 1 million evs in 2016, down about half a million from

previous targets. toyota has put far more effort into developing hybrids than electric vehicles. earlier this week, volvo scrapped its goal of going all electric by 2030. panasonic is starting to sell tvs in the country once again. they were once the world's biggest maker. they have led displays for sale through amazon and costco. it had creeased production in 23 because of cost and a drop in demand. >> pippa, thanks. coming up, apple's iphone event is monday at 1:00 p.m. eastern and wall street has expectations for its apple intelligence software. the shares are down 4% since tuesday and having their worst week since april. we'll be back right after this. it's time to grow your business. time to get customers. time to make your future, now. create a website in minutes. how?

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welcome back. we have a news alert on roblox. steve kovach is there with the details. steve? >> hey, there. yeah, shares are coming off their lows after this big declaration at their annual developer's conference today. the headline is the company says

it wants to capture 10% of global gaming sales, which total $180 billion. roblox is using the number from their research firm. the plan to get there is to keep growing their users. the company says it can reach that goal after hitting 300 million daily users. currently it's at just under 80 million daily users. also, more outlets for sales, creators on roblox can charge an entry fee for experiences and they can charge up to 50 bucks, pretty close to the price of a standard video game you would buy on your pc or video game console. and creators, of course, will get a cut, but that percentage is going to depend on how much money they charge for their experience. that's only happening on the desktop. that's, of course, to avoid paying those fees to apple and google, at least for now. on top of that, e-commerce is coming to roblox, allowing

companies to sell physical goods through a partnership with shopify. a booming part of social media apps, we've seen success on instagram and tiktok, and a few others. and this also speaks to just how big the video game industry is. roblox says over 3 billion people out there are gamers and they eventually want to capture 1 billion of them logging on every day to robl roblox. that would be about half the daily users that facebook has. and later today i'm going to have more with an exclusive interview with ceo david baszucki in the 4:00 p.m. hour. >> extremely ambitious. certainly gives us a scope of what they would like to do. speaking of ambitious, time for today's tech check. apple has the highly anticipated glow time, should we expect a glow up? >> that glow slogan is their reference to what siri, the new design is going to look like. your screen glows when you talk

to it in your next version. what we need to see proven out with this new lineup of phones that we're expecting from apple is whether or not they can convince people to run out stl and -- there and buy ai hardware. we've seen a number of companies try from the supply side to kind of foist this hardware on consumers to little or no success. earlier this year we had samsung with their a iphones, and they did show some growth over over the previous model, but it's not necessarily upgrading because of ai. and then this summer we had microsoft come out with several partners, the copilot+ pcs, but they've been a relatively weak launch compared to expectations, and that's because they had to actually take away their marquee artificial intelligence feature due to some privacy concerns. so apple really has to tell a different kind of story than its competitors to convince people to buy more iphones, because

they are not charging for all these artificial intelligence features. they're going to come free. so that means apple needs to move more hardware, kelly. >> just kind of to bring it to the point, what do you think is priced into the stock in terms of expectations, steve? >> there's two schools of thought going on right now among the wall street analysts. one school says, okay, this is going to be the inflection point for a multi-year growth sicycle and this other school of thought saying that's baked in, we learned about three months ago what all this artificial intelligence stuff is, we saw the stock recover from earlier in the year because of that, and therefore, it's all baked in. we're going to have to see. we all know that people like to sell the news on apple event days. >> that's right, they often do. thanks very much. it will be a busy week. coming up, forget the waymoss, the latest driverless cars making serious noise are at the indianapolis motor speedway

where we find our brian sullivan. what in the world is going on out there? >> well, the market is not down here, stocks are selling off, kelly. but here in indy it is all autonomous and it's all optimism. how about this? on a friday, market is down after the break, i'm going to show you cars that can go 180 miles an hour, no driver, that are going to define the future of what we all drive live from ghafr isedy motor spewa rit teth. boom! at&t internet that's why i'm chief technology officer but all you did was plug it in, you didn't do anything neither did you exactly exactly exactly exactly impressed? honestly, a little

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america's iconic tracks. i've been saying for years that nascar should do this, race evs, autonomous cars. i think it could save the industry. i'll stop talking and i want to hear what you have to say about this. >> listen, as a semi professional racer myself, i might disagree. i like being in the car, even if the self-defense hurt worse. this is the indy autonomous challenge. this is amazing. even if you don't care about car racing, this is the future of cars, of driving, of technology. and here is one of the cars. so zoom in. look at that. this is cal tech's car, cal berkeley was just out on the track. they broke down. something went wrong. the car is limping along here. 12 universities around the world competing for a $1 million prize. i know it's a market day. you've got cisco on the car, you've got luminar, they make the laser radar that helps us drive. what happens here with these cars, anything that you've got in your own car, kelly, seat

belts, rearview mirror, antilock br brakes, all of that was developed on the racetrack and brought to detroit and put in our cars. the same thing is going to happen here. this challenge on its third year, 12 schools around the world competing for a $1 million prize, bragging rights. and no doubt, the ph.d.s standing behind us that uva, virginia tech, where are you? uva is here, the ph.d.s, in doubt, are going to be some of the women and men that create the technology that literally drive the future. these are the best of the best. >> so, i think it would just be interesting, brian -- i know safety is an issue. but let's see a goasoline-powerd car up against an ev, you can bring real competition and a race back to these sports. >> this is cool. the uc berkeley car is running again. look, no driver.

look at that. there's no driver in there. kelly, this is not remote control. there's not a human controlling like a video game. this is literally the software, the ai brain left, drove around, had some kind of problem, because the computer ain't talking to me, i don't know what it is. this is not some remote control video game. this is a software program developed by the schools that drive the car on its own. >> it's a great idea. >> imagine waymo going 180 miles an hour. we're going to be here all day and i'll try to tweet -- whatever the more interesting story you have is, the market goes down. >> you are right, this is the future. i love seeing the investment, the fact that colleges are involved, too. i would just love to see these all race one another, see who

wins. brian, thank you very much. >> i would even root for uva in this situation. >> so kind. virginia tech needs to get its act together and get in there. cnbc's annual game plan summit is this tuesday, september 10th in los angeles. it brings together industry leaders and visionaries from the sports and entertainment world. to learn more and register, scan the qr code. coming up, we'll continue to monitor the sell-off. the nasdaq down 2.5%. broadcom is having its worst day since 2020 after disappointing earnings last night. we'll be right back. (♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this?

nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com ♪ investment objectives, risks, charges, expenses ♪ ♪ ♪

let's say you're deep in a show or a game or the game.

on a train, at home, at work. okay, maybe not at work. point is at xfinity. we're constantly engineering new ways to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island? welcome back. the markets have taken a leg lower after the jobs data and after broad kom results. that has the nasdaq on pace for its worst week with the 2.5% drop since to 22. hi next guest seeing an opportunity. he has a new piece.

i love this making the case that meta is holding the key to tech right now. to read the full story, scan the qr code. jeff is here. he's the ceo and cnbc contributor. although the said of nvidia makes me think we have to get past all that before the market can grapple with meta either way. >> the reason i bring up meta is being a lynch pin in this questionable profit taking tech washout. it's usually the fact it's up 42% year to date. let's look at broadcom. it beat the top and bottom line. what was the difference, why is it down nearly 10%? why did it lose $50 billion in market cap? the forecast for the current quarter shaved it from 14.11 billion to $14 billion. so think about that for a second. they shaved $110 million in forecasted revenue, we just lost

$50 billion. that speaks and underscores or amplifies the fact that away we are seeing in the tech investment world is an insatiable thirst. when you really talk about what's going on, i think you're seeing nvidia, profit take ing down about 21% and highs in july. but if i look at meta, they have defied gravity and continues to see f you look at august 5th, meta got down to 450. so why i'm focused on meta, why i think facebook is the the lynch pin because if we see detieruation or a crack under that 450 level, that's where you can see more panic. i don't see panic. you're seeing the tech sector being utilized as an atm, and rightfully so. saying nvidia is right at a key

level where the charts, depending on if it goes up, maybe the chart looks good. it just at what point can we get past it being the bell weather? how much more does it have to sell off? even this past week, the earnings told you and then broad com, it kind of told you this is the market right now. >> nvidia beat another great quarter, but it's the expectations. and you know i had a question mark and had a raised eyebrow in the month of june and july. it felt like we were burning money. we were lighting money on fire. that came to fruition. we saw that drop from 140 down to $92. we were able to buy back that position. we sold puts. we're playing a game of ping-pong as we see investors continue to be perplexed on the spending, the cost, the re knew, all that is linked together with that ai theme. i think the ai theme is not going to go away.

in my article today, i want to utilize these elevated premiums to capture, but there's a moment in time specifically with meta and if meta gets down that 450 level, i want to be a buyer. i will be selling puts off of the fear of the market going lower. i think you have to be unbiassed in this and unemotional, but we're conditioned to look at nvidia. it's very important. i'm tell you to keep an eye on meta. >> could i spin this differently and say another way of what you're talking about to describe to put it is to say we're all going to be searching for the next group of leadership or what kind of -- if nvidia two-year story going back to chath grks ppt is running out of steam or rotating, are we talking about meta being the next horse to bet on? could we go from an apple, is meta going to be that kind of thing or more tactical move. >> i think you bring up a great point. i'm looking at a very short-term view. the lens i want to look through is for that leadership.

certainly nvidia has provided leadership for the last 24 months. what i'm looking short-term, in the event meta has the ability to crack, you're going to see more of a rotation, more of a true exposure from institutions and retail. therefore, i think tactically, you're seeing meta have the the ability to be the short-term. we are 12 days away from the fed coming out. we know the fed is going to be cutting assets of 100 basis points. it's imma material. you saw the group move up about 25%. so we are seeing that it's going to be 25 because if they go 50 basis points, that's going to spook the market. that could be a washout. >> that's how you think meta goes from 500 to 450. you wouldn't want to own it here? >> i own the puts and i'm happy to be on the puts right now. we're going to ride this a little bit longer. >> thank you as always. appreciate it. nasdaq down 2.5%.

worst part of the markets about 1% for the major averages. that does it here on the exchange. "power lunch" is next. ♪ (girl) wooo! ♪ ♪

>> i had 20 years of experience as an hr professional and i had reached a ceiling, so i enrolled in umgc.

i would not be the person that i am today had it not been for the partnership with umgc. welcome to "power lunch" on this friday afternoon. alongside kelly evans, i'm dominic chu. the market is dealing with three

new big items today. the jobs report, fed comments and broad come earnings. stocks lower after another week of an expected jobs report. 142,000 jobs created. >> look at where the ten-year yield is now. we are 3.71%. this is going to put pressure on mortgage rates, which could be headed towards the low 6s. maybe not there yet, but moving on from jobs, we got comments from fed governor christopher the waller, equally, if not more important to the market reaction today. signaling the time has come to start cutting rates and potentially being open to bigger cuts sooner. then the results, it met expectations but the guidance was not raised and the stock is down 10% hurting chips across the sector. >> that's having ripple effects. the nasdaq is down 5.5 mrs. just this week alone. it could potentially end as the worst week