tv Power Lunch CNBC September 13, 2024 2:00pm-3:00pm EDT
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mathisen good to be with you. glad you are with us stocks wrapping up a strong week, the nasdaq and the s&p up every single day so far this week >> it's actually so -- this is not how september was supposed to go, by the way. remember >> september is usually a pretty bouncy month. >> the past four years on average we're down 6%. today is the day, if i recall correctly, that morgan stanley told us the buy-back window closes ahead of corporate earnings the weakness could start in the back half of the month. >> it's friday 13th. >> indeed it is. boeing is taking a another leg down this afternoon, it's union workers walking off the job today, more than 30,000 of them after an overwhelming vote to reject the company's contract offer. that has moody's putting boeing on review for downgrade and the shares are down almost 4%. >> down a lot. the union clearly looking for a pie yer pay raise, up as much as 40% over four years. the company, i believe, offered 20% over four years. maybe -- i think this is a strike that needs to get settled
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quickly before further damage is done to boeing firms like apple and openai prepare to launch new ai models lots of people are talking about the threats of ai. oprah winfrey releasing a substantive special on the subject last night and we will talk to tristan harris who was featured in the special, he previously sounded the alarm on social media and now says we are making the same mistakes with ai as we did with that. >> i thought the fact she did a special on this was so interesting. i remember when she did the big lance armstrong interview years and years ago. i think if anything wall street is backing away from this idea of worrying about a lot of the dangers of ai and just actually wondering what the investment cycle is going to look like. so perhaps maybe -- >> i guess we will make the case that we need laws and regulations on ai to avoid what he says has happened with respect to social media. it's very hard to know how to regulate something when you don't know what the effects of that something may be. >> 100%. >> so we will explore that with
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tristan. it's also day three of our inflation blueprint, we are looking at consumer electronics. smartphone prices are down 9% in a year according to the cpi and push back on smartphones in general is leading to an increase in demand for so-called dumb tech, the simpler the flip phones that we all used to have and in that same vein what could be more low tech than paper. show them, ty, the onion, it's going back into print. >> there it is used to be very fun, satirical, still is and it's online edition but it's coming back one of the headlines says that the "new york times" is going to cease to publish because "the times" is saying we can't compete with the onion's new ri released paper edition. let's begin with boeing. factory workers strike there for the first time since 2008 after rejecting a proposed contract that if i'm not mace taken the union leadership had actually gone for let's check in with phil lebeau who has more from renton
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correct me if i have that wrong, phil. >> reporter: no, you're right. union leadership did recommend approval of this contract that they reached an agreement to with the management of boeing, they reached an agreement, they said vote on it. you know what the members said we heard it all yesterday. it wasn't even close 96% said, huh-uh 25% raise over four years is not going to cut it. boeing is under pressure not just because of the strike vote and the fact that production has been shut down but you had two credit agencies out today saying that they may cut boeing's credit rating if this is an extended strike. the key here is that if it's an extended strike, then the credit rating is at risk. cfo brian west speaking today says the company is focusing on conserving cash. why? the financial impact, this is one estimate, jeff frees says that boeing's free cash flow could take a $1.3 billion hit if this is a one month strike that's an estimate from
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jeffries all of this intensifies the pressure on the new ceo to get this resolved as quickly as possible brian west the cfo when he was talking today about that renewed push to get back to the bargaining table he talked about how kelly ortberg and the rest of the management team want to get this deal done as quickly as possible. >> kelly is personally engaged and focused on restoring our trust with our people and the union. and that's a priority. reset that go relationship and, you know, we -- we want to get back to the table and we want to reach an agreement that's good for our people, their families, our community and our intent is to do just that >> reporter: as you take a look at shares of boeing slumping to another 52-week low, seems like we've said that a number of times over the past couple of months remember, 96% of the machinists
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voted to go on strike. 95% said that last contract wasn't good enough bottom line is this, they want 40% raise over four years, tyler and kelly. the company has offered 25%. that was flat out rejected now the question becomes how quickly can they reach some kind of an agreement somewhere between 25% and 40%. >> all right phil, thank you. for now we appreciate it. phil lebeau reporting. with shares of boeing down nearly 4% in the session the dow managing to rally despite that and the stock is down nearly 40% in year. for more on the strike and how it will likely impact the company let's bring in ken herbert. he has an outperform and a $220 price target ken, how long have you had the outperform >> yeah, hi, good afternoon. so we've had the outperform since -- for about a year since the fall of last year when obviously it looked like things were getting better from a delivery standpoint on the max and the financials were on a better trajectory certainly than they are on today.
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>> but of course the major incident was this alaska airlines incident, correct me if i'm wrong, late december/early january. why no reaction at that reaction to that point to the seriousness of what's transpired from the regulators' point of view which i think charged the company with a crime and the point of view of frustrated shareholders who think the company has one challenge after another? >> obviously, you know, it's hard to predict how these events would play out and the confluence of events we would see through this year. in our view the alaska incident was incredibly devastating and unfortunate. we think there's been other issues that have surprised us as we've gone through the year. as we sit here today we feel like the setup still remains positive obviously or we would have a different view on stock as we get through now under the new ceo can get through the labor issues and the strike, ideally help to shore up the balance sheet in a little bit in our view the strike is will be rel testified short lived. we like the near term setup and
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should see investor confidence improve on the stock moving forward. obviously a few issues still to work through. >> what are those short-term catalysts that you see contributing to a positive setup for this stock because for a layman like me it's hard to see them. >> yeah, great question. you've got to keep in mind the backdrop in terms of airline financials, in terms of traffic demand remain very healthy so we think production rates on the most important programs at boeing, whether it be the 737 max, the 787, have significant room to improve over the next one to two years we do think you are at sort of a trough right now -- not a trough, but you are looking at a situation where very limited down side risk on these key programs we also think there's significant opportunity to improve the execution of performance at the defense business we think the company is well-positioned coming out of the strike to maybe take some
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steps with equity or other measures to improve the balance sheet. so we do think you've got a very strong demand backdrop, you've got airlines remaining in very good health financially, you have a very good backlog, you have production increases that could be substantial over the next couple of years which should all contribute to what should be a very nice inflection in free cash in '25 and '26 and later into the decade. >> that said, ken, how much can boeing -- well, it's kind of ironic you say that. if they are inflicting and are going to be in a good cash position should they be paying upwards of 40% to resolve this quickly and what do you feel about the $60 billion debt load that if they start to bleed cash as this goes on becomes more of a pressure point >> yeah, i mean, they've obviously been bleeding a lot of cashier to date and i do think there's, you know, significant expectation from investors and ourselves that the company likely looks to issue, you know -- raise some capital through some equity issuance coming off the back of this
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ideally what should be a short-lived strike and the ability to move forward here so that should certainly help. i mean, the debt load obviously it is what it is and the events this year certainly haven't helped that and compounded that. you have to remember there's significant cash in -- tied up in inventory on the balance sheet and if we can get to a point where we can start to see better visibility on monetizing that cash and get to a point where, you know, you are looking at production increases on these programs, those will be very significant tailwinds in this business. >> phil, let me get you to respond to something ken said and i think ken is quite rightly pointing out, demand among airlines for aircraft is high, the air traffic business is pretty healthy, but is it -- am i wrong that that hasn't been the case for quite a few years now with the exception of the pandemic when things just fell apart for air traffic and the airline -- and the airline and presumably aircraft manufacturing business, but hasn't that been the case for a while? and hasn't it been true that
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boeing has done nothing but lose money several years under circumstances that you would think actually should by and large since 2022 at least favor them >> well, the broader environment is favorable, tyler, but as ken has pointed out, look, it's been one bad incident self-inflicted wound after another for boeing whether you go back and start with the max crashes, move forward to the door plug blowout with alaska airlines, go forward from there to the -- you know, the faa saying, look, you have got to get your quality control in order you put all that together, those are all boeing specific issues and if they can resolve those issues, if they can get past those issues, it's a very favorable environment, both for boeing as well as for airbus, which is what i think ken was alluding to earlier. >> i don't mean to put words in ken's mouth and we have to move on from here, but i sense, ken, that you're saying it can't get worse than it is and that once
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the strike is settled and once these other things get out of the way, not only can they overcome these mishaps that they've had that include, if i'm recalling correctly, some criminal charges against them, they can move up from here just quick thought, ken, as we tie it off >> quick thought yes, you never want to say it can never get worse but ideally we're troughing in a lot of metrics and personally i have a lot of confidence in the new ceo to turn the ship around here and to start to make substantial improvements in execution and with regulators, with customers and with cash ultimately at boeing. >> ken herbert, we thank you, phil lebeau we thank you as always tell those people to quick honking their horns out there. >> lively. still to come, meta says it's going to begin training its ai model using content from facebook and instagram in the uk over many months many are anxious about social media's role in ai and our next
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guest says the ai industry is making the same mistakes that social media companies made to the detriment of society as a whole. "power lunch" will be right back okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen
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the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity
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you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. welcome back to "power lunch. the ai space flooded with headlines this week, apple's ai powered smartphone, openai in talks to raise about $6.5 billion even oprah winfrey had an in-depth special on the topic within the last 24 hours companies are talking about it, too. 40% of the s&p 500 mentioned ai on their most recent earnings calls and all this pointed to one conclusion, ai is driving full speed toward the center of our society and culture, but will it arrive safely or face a head-on coalition with our ethics and practices here to discuss the risks of ai's emergence and the role of companies in this new frontier is tristan harris, co-founder of
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the center for humane technology >> good to be here with you. >> there is so much to get to here and we're going to solve the issue right here in four minutes i promise you. i'm interested by something you wrote in may many cutting edge ai companies are rushing to release risky, unreliable, insecure and even unethical ai products in the hope of dominating the market, in the process they are white-washing harms and offloading responsibility to governments and the public to figure out solutions for problems their ai products create i don't doubt that that's true, but i'd love to you give me some specific examples of those and what the effects they could be. >> sure. when we last talked i think when the social dilemma the netflix documentary came out what's the lesson we should learn from social media? that if you don't make companies accountable for the harms that they create, then the business model, the incentives, will drive them to take shortcuts and
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just do whatever makes the most money. in the case of social media, it was the race for engagement and attention. the outrage of politics, personalized news versus creating a shared reality, breaking our shared reality and now society is left holding the bag. so even though the stock prices of facebook and snapchat and youtube, tiktok, have gone up, youth mental health goes down whenever your 401(k) says snapchat goes up. >> were these consequences -- and i don't dispute that there is an outrage not just of political conversation but of all conversation on social media in lots of ways -- were these outcomes really predictable, were they an objective of the companies that were producing these products, and then how do you, quote, hold them accountable? >> right so i don't think that they were intentional by any means. >> right >> we did anticipate them in 2013, you know, charlie munger said if you show me the incentive i will show you the outcome.
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the incentive for attention and engagement, maximizing time spent created the race to the bottom of the brainstem and they could be held accountable for those harms. we didn't do that. so here we are with ai we're about to roll out a technology that's moving a million times faster and is way more powerful and transformative than social media. have we made these companies accountable or liable for the harms they create? no. >> what are the ai harms going to be? >> well, i mean, we're already seeing t we talked about some of it in the oprah tv special you know, the same ai that can let you instantly edit your family photos is also trained in the other faces and bodies so you can create nudification apps. >> so you are not talk being generative ai per se. >> we are, yes. >> replacing google with something that answers my question in the form of a sentence is different than the way that the ai could be deployed to recreate photos or videos and that sort of thing.
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>> the ai -- the generative ai that can deepfake photos or voices or videos, we in the oprah tv special that aired last night there is a woman who her daughter was kidnapped and there was a fake audio message about the fake kidnapping asking for money to be paid for ransom. this stuff is already hitting our society. >> she was if i can kidnapped or actually kidnapped. >> fake kidnapped. >> a lot of people have had these phone calls, my grandfather got one of supposed my brother not long ago. >> taylor swift. >> have we talking about companies like openai or what kinds of companies are we talking about? nefarious ones or ones out in the open and how do you target -- do you target them with rules that can say obvious things about you can't create nude images that purport to be real ones, there's rules about that distribution as well, or specifically how do you get at this >> so we believe in a federal liability approach for ai, in fact, we just released a podcast episode that kind of goes through that in more detail.
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we believe in things like whistleblower protections to make sure that people -- with the government admittedly they do not have that much expertise in all these issues. in the meantime the people closest to seeing where that harm can arise, notice the openai whistleblowers that came out and recently left, the safety and sigh linement team, some of those folks have left openai this is telling a signal there are some problems with how this is being rolled out. it's not that anyone has bad intentions or are bad people, it's the race to roll out, if i get there irst, if i roll this out i get market dominance, that's how i raise the next big venture round, hire the most talented people and can continue to influence policy by leading that conversation. >> how can laws keep up with phenomena that may not even be anticipated yet? we know -- we can see what some of the risks and dangers are. >> yes. >> those bots, those fake influencers creating harmful images of young people or whatever you can see some of that, but there's a lot of this that is so
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beyond our understanding right now that it would seem very hard for legislators to draw laws to restrict it and create liability. >> what we should do is increase the responsibility of companies to have more foresight into all of the kinds of risks that can occur. we need to incent size surprise that foresight what did we learn when francis howe the facebook whistleblower came out they knew it was causing harm to teen girls but it should down all the internal research at facebook now because if they don't look then they are not liable we need to increase the incentives for that research on these harms. >> is there any historical analogy to what is happening in this big sprawling world of ai and social media and perhaps the willfulness on the part of some of the companies to other
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industries that have knowingly or obligingly allowed harms to perpetuate whether it's a chemical company, an oil company, a tobacco company? >> well, in many cases people don't know until a little bit later, but i think in the case of forever chemicals there was that research early on that it didn't get out until now and now fines -- billion dollar fines don't clean up the forever chemicals that are in our environment. now that mental health has been degrading in young people and we've broken our shared reality, fines don't clean all that up. we now have to actually fix this but i will say on the good side we can be using ai to help address some of these problems it's not just about red tape we can be using ai to add context, to help bridge divides, you can have an ai that says where people disagree and help provide and generate text that generates more context to bring conversations closer together. he can we can be using ai to say what are the areas of the laws that are obsolete that we need to actually update those laws or sunset them or help address and
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fix some of those laws it's not that ai is the problem but we're currently rolling out in a way that it risks undermining and overroaming our society. i know the big thing people are concerned about is china are we in a race with china? if we are in a race with china we are in a race to get this right. what's the lesson we should learn from social media? we beat china to social media. did that make us stronger or weaker >> and they came out with tiktok. >> yes. >> and grabbed a lot of that attention back and a lot of people are still upset with the result of that. >> yes but that's the point is that we might have beat china to the technology of social media but it weakened attention spans, mental health, our iq scores, education scores, our polarization so it's not about the technology being bad, it's about who is -- it's being in a race to govern the technology in a way that strengthens the holistic a of your society. >> very quickly because we're out of time. companies almost universally say we favor sensible regulation.
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>> yes. >> do they >> they say that and then the next day their policy team's job is to mostly block as much of that regulation as possible. >> tristan, thank you very much. >> thank you. >> we will have you back soon. still to come on "power lunch" after a quick break, trading stalwarts for upstarts market navigator devils into that next. welcome to the now way to network... they switched to juniper's ai-native network. and now, everything is so reliable... that no one is ever left in the dark. because now their network is self-configuring, self-detecting, and self-healing. so, their it team can feel confident that updates are made without errors in minutes, not months. that's the now way to network at work, with real ai—for an experience— that's so lit! yes. yes, it is. ♪♪ you'll find them in cities, towns and suburbs all across america. millions of americans who have medicare and medicaid but may be missing
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welcome back to "power lunch. with the dow up 257 points it's outperforming despite boeing's weakness with those shares down 4% today, s&p, nasdaq up a half a percent. check out shares of donald trump's media company, it's popping 12%. the former president says he won't sell any of his shares that lockup is i believe supposed to expire september 18th allowing him to do so the stock had been briefly halted for volatility and is popping up about 2 bucks to 18 in today's market navigator our trader things the dominant thesis on the consumer is overlooking something and he's running out to capitalize on it. joining me to explain is todd gordon, a cnbc contributor todd, show me your sneakers. >> i knew you were going to ask
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that i don't have them on, kelly. >> welcome what's the consumer narrative here broadly speaking and what's the trade? >> i knew you were going to ask me that. yeah, so i think a lot of people looking at the consumer discretionary sector specifically xly seeing its range bound related to growth sectorsers like tech and communication and making the judgment on the consumer it's weak, stocks are underperforming going into a recession if you look below the surface there's more happening on the largest cap stocks within xly, amazon has been underperforming, tesla has had some issues, questions of ev adoption, et cetera, but figure down and look at my list there is a lot of stocks i think are rotating out that are formerly leaders, high valuation and making way for new names reflecting shifts in consumer taste a couple names if you don't mind darden, mcdonald's, cmg rotatin out what's coming in, cava,
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sweet green, wing stop, texas road house lululemon out, starbucks out, dutch bro in, monster, celsius and to the point nike has had issues, there's questions about the reliance on the air jordan line, internal issues and i think there's newcomers coming on specifically one that i like is onon, on cloud, it's a swiss shoe maker, i hold it, i added it to the portfolio in june, i increased my allocation in august, the second largest holding we have for consumer discretionary. this company is growing revenues quickly, about 68% in 2022, 46% last year and they are expected to go mid 20s over the next couple years, good margin. i do think they're taking market share from nike. i think some of the buzz post-olympics is wearing off
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nike is only growing 4%, 5% year over year for formerly a pretty high valuation i think onon is a company that's being very proactive, direct to consumer sales. >> what's the price target >> okay. so right now we had it close above 48, this is going to be the highest close we've seen yet so mid 60s looks good. >> okay. >> it's got a compelling valuation. i'm going to hold it, i continue to like it. >> all right next time we will take a look at those sneakers todd gordon, have a great weekend. thank you so much. tyler. all right. coming up, many were expecting some huge price tags on apple's new iphone but they were pleasantly surprised to find most prices remained the same from the previous model, overall, however, smartphone price right side down over the past year. we will dive in deeper in today's powerhouse blueprint, your gadgets and stuff next.
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groceries and food, but where do smartphones land on the inflation scale? since, like it or not, those devices have become almost essential. today's blueprint we look at electronics in the home, stocks like apple, dell, hp, according to the cpi reports prices for smartphones are actually down 9% year over year here with more is ameet dariani covering the i.t. hardware sector good to have you with us how much are electronics prices still coming down? we all remember when the 70 inch flat screen was $4,500 now you can get them for a grand or less maybe. is that still a deep trend >> listen, i think there are two different buckets, there's apple and eye phones where i think pricing has been relatively speaking very stable, iphone 16s are literally the same price as the 15s are.
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but if you look away from apple smartphones, iphones, pcs and printers and all these things, pricing for these things went up pretty dramatically through the pandemic when there were supply chain shortages. an average pc was 850 signed, $860 those prices are v. come down in a substantial manner as supply chains normalized and demand weakens, companies are forced to play with price elasticity a little bit. outside of iphones you are starting to see a reversion back to the deflation post the pandemic for consumer electronics. >> wherever there's deflation i guess we should welcome it because otherwise prices are sticky and high, higher than they were pre-pandemic what stocks do you like in this category, amit >> i think deflation is great as long as it's not on our wages personally it works really great otherwise. listen, as you think about let's
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say apple is one of the bigger consumer electronics plays i think is extremely well-positioned, one of the dynamics that apple has is that they're able to shift consumers more and more to high end models, higher memory or the pro max models i think apple is well-positioned and more pricing and elastic than a lot of other companies are. the pc companies, hp and dell, eventually maybe '25 we will get a pc upgrade cycle do these companies and the industry broadly get into the ai jet stream as well, the ai piece could be a good story for them next year. apple is a name we would say is worth owning across the spectrum hp, dell potentially as you get into a pc upgrade cycle next year. >> thank you. with he veesht it. kelly, secretary of state antony blinken announce this had afternoon the u.s., uk and
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canada are launching new sanctions to address the threat posed by russian state-controlled media outlet rt blinken accused rt of working with the russian military and running fundraising campaigns to pay for weapons and other equipment used by russian soldiers in the war against ukraine. he called the outlet a key part of russia's war machine. pope francis weighed in on the presidential race today as he departed singapore. he criticized former president trump's plan to deport millions of immigrants as well as vice president harris' stance on abortion he said catholics will have to choose the lesser ee vil when voting. and boar's head will close the virginia plant that produced meats died to a deadly multistate listeria outbreak the company is facing several lawsuits linked to tainted meat and is discontinuing its liverwurst products. as of october 28 the cdc says 57 people have been hospitalized in this most recent listeria outbreak and nine people have
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let's get to work. idris elba works here? mm-hmm. ya, he's super nice. welcome back stocks are rising today about a half a percent across the board and it comes on increased hopes for a half point cut at next week's fed meeting on that note let's get to rick santelli to see the impact across bond yields and whether we think this is a likelihood. >> i tell you what, i didn't but that's about what this whole spot is today that i'm going to talk about the drama is unbelievable, everybody is talking about whether it's a quarter or 50,
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you have large brokerage concerns, i don't need to name names, weighing in on 50 you have huge trades going through some of the cme contracts that are definitely moving towards a 50 basis point ease but maybe a picture is worth a thousand words, especially three pictures let's look at january fed fund futures today, i'm not going to talk about anything but direction. if you look at this chart it's basically flat, it's starting to aim up now, before we get to the next chart, remember, on wednesday and thursday we had cpi and ppi respectively and if you are agnostic about inflation, there was some spots in both of those number sets that were sticky on inflation. okay let's do a two-day chart now so after ppi you could clearly see the market rocketed up and that's where we are today. but that isn't even still the whole story. let's go back another day when we had cpi coming out and now you really get to see the true picture. cpi comes out, it moves down,
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goes sideways, then ppi comes out it goes down and even a lower level. remember, when fed fund futures prices go down you take percentages out of an easing when they go up and the price increases you put percentages back up there. as it sits right now, kelly, it is pretty much dead on 50/50 on 50 now, i remember in '88 i was there the first day fed fund futures traded and one thing i can tell you, they've given the contract a lot of crystal ball-type characteristics, but really in essence history will dictate that it's best, its really accurate predicting the future, when you are within a couple weeks of a meeting. so what i would say to answer your question, if by about tuesday afternoon we're 60/40 or higher percentage on a 50, i think the fed goes along with the contract so we still have some time to enjoy this fed fund rate drama back to you, tiler >> you were there in '88 you must have been about six years old.
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rick santelli, thank you, man. whether it's a ban on smartphones in classrooms or a desire to unplug from all our modern deaf devices is having a of a moment, a senior moment maybe. it's leading to the rise of so-called dumb phones. we will get the details next it's time to grow your business. create a website. how? godaddy.
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welcome back, everybody. a growing crackdown on cell phones in classrooms across the country creating a boom for so-called dumb tech. julia boorstin joins us with that story julia. >> tyler, a growing number of smartphone bans in schools are creating a business boone for basic technology, a trend affectionately called dumb tech. nine states enacted policies restricting k through 12 cellphone usage including four states that have fully banned smartphones in schools and here in los angeles, which is the second largest u.s. school district, a ban of cell phones in schools will be put into effect early next year with the u.s. surgeon general calling for a warning on social media apps, parents and schools are thinking about alternatives
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to the current trend which is giving kids phones the national institute of health estimates that as much as 53% of children have a smartphone by the anyoge of 11 one company benefitting from smartphone backlash is called yonder, is makes pouches for students to lock up their phones during the school day. it is on track to double the number of pouches in schools this year to 2 million across all 50 states. another company called gab designs safe phones just for kids, they tell us they've doubled the number of phones sold every year for the past five years another company light phone designed its streamlined mobile devices which offer calls, texting and navigation for adults who want to minimize distractions but the devices have been embraced by younger and younger users along with some schools and parenting organizations that are working to drive the adoption of light phones with teens. the market for these phones and other tools to limit kids'
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access to the internet and technology is expected to grow even further tyler, i have to note that france just announced its doing a trial ban on mobile phones in schools for kids under the age of 15. if they think it works, kelly, they're going to roll it out across the country. >> my husband tries it every now and then to dumb down his phone but then he needs it for paying for something, paying for parking. there are so many different apps that we're almost now required to use, it's hard to let go. julia, thank you we appreciate it. julia boorstin. it's not just so-called dumb phones making a come back as the
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ben, maybe it's -- some people call this the death of the internet, people are thinking it ak kell rates that -- >> how many pictures of a guy -- >> i think that's a big part of what we're capturing here. people just want a nice thing in their hands that has nothing to do with the weird racist garbage they see constantly piling into their face on the internet we can -- >> i want to correct jeff's numbers it was 47 billion people we talked to for this. but it has -- you know, in reality we can comfortably fill an arena with the amount of people who signed up for this thing. there is a real tech clash in general but also people want to get something in the mail that's nice at a pretty good pric also, people just want to get something in the mail that's nice, a good price point
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we had a bunch of progen tors in this space moving to subscription models, but we wanted to give something else that was good. right in front of you, an ad for free conversion therapy available at any chick-fil-a, there's a lot of good stuff in there. >> i like the effortless reference to crowd size. that was beautifully done. ben collins, let me turn back to you. how often are you going to print a printed version of the onion jeff, go, go for it. >> sure thing. for $100 a year, an onion is shipped every month with the newest and freshest news available. this is just the beginning, right? >> you call this news? >> yeah. but, for right now, $100 gets it to your door for an entire year. what we see is people like having this thing on your coffee
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table says something about you it says, you know, you're valuing your time, the slowness and slowing down life, it also says that you are a sicko, and so to us, our audience, our people who identify. they want to be a part of a known generation getting off-line, and saying something about. kind of company that they keep. >> jeff, i'm curious to build on that not toover-broaden the point, but if you were looking at other areas of broken things from the dot-com age and arena, are there other business models that could do that? maybe even ones in a having tried it before. >> i was attracted to this business model a, it was so broken. it was on the other hand by private equity say what you will about private equity, it won't by good, but especially owning "the onion" what were they thinking? this is a beloved asset and turn
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around the business. the internet has subscriptions, products, ads to sell one of those first two. one of the business models doesn't work, ads, so we're going to cross that off -- but, the reality here is this is a business model, when ben and i talked about it, we could easily throw 3 had you been, 400 percent over the nest 30, 40, 50 years. that's the commitment ben has made to me. >> sounds good good love with all of that guys, i am one of the fuel people probably in some eric who gets ari pnt edition of the times and judge every day. >> i'm with you. it's great >> all good. gotta go thanks very much, guys
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opportunity in the united states. we recently closed the purchase of a u.s. bank, which gives us full access to the u.s. market. that's very exciting for us because now we can launch our receivable purchase program fully in the united states. what we developed it in canada, and it was very, very popular. as far as we know. there's nothing else like it in the united states. welcome back, knocks a check on the markets you see a pretty good week rounding out here with the dow jones industrial average up 273
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points that is good the other major indexes are higher as well our stock draft has had some movement near the top of the leaderboard. os is neck and neck with steady eddie george, who has nvidia and apple, but here comes joey chestnut, changes to oracle. getting a lot of positive analyst commentary so there you go. >> also, continuing our high tech to low tech boot barn is at an all-time high, helping nev shulman into first plate. if you heard he was in a bike accident, we're told he's recovering nicely. c
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cocoa is up. 82% rally behind them. by the way, that came as ghana had increased the salaries it was paying to the growers. well, wrapping up a good week we'll see you next week in washington in part of it, thanks for watching "power lunch." >> "closing bell" starts right now. welcome to "closing bell." i'm in for scoot wapner. this mac-or-break hour has stocks flying to highs it's coming together with reassuring economic readings in recent days to carry the indecisions to a fifth straight gain, could be the best week since november of 2023 could be the best since mid august we have 60 minutes to go in regulation s&p 500 within 1% of those
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