or a night person. or a...people person. but he is an "i can solve this in 4 different ways" person. and that person... is impossible to replace. you need clem. clem needs benefits. work with principal so we can help you help clem with a retirement and benefits plan that's right for him. let our expertise round out yours. good afternoon, everybody. welcome to "power lunch." alongside kelly evans, i'm tyler matheson. glad you could join us on a monday not the markets are waiting for wednesday when we will get the answer to the question everyone has been

asking -- a quarter point or half point cut? >> right now it's almost 50/50. i can't remember a recent meeting where it's been that uncertain this late into the decision. >> i think you had a guest on who said the fed's general tendency it to move cautious low. i think that is probably -- cautiously. i think that is whistleblower w what they will do. >> rates may be too high, you read the piece, many people have been saying this, but there's still this institutional sense they should do 25. >> i'm bettine iing on a sqquar quarter, and a quarter. >> we'll have stock picks not just depending on what the fed does, and we're watching moves in pharma. pfizer is higher after drug news, and we're looking at the new wave in cancer treatments. >> there's a move that some of the pharmaceutical companies are pioneering here to develop really highly targeted, specific drugs that can actually go right where the tumors are and bring

either -- either radiation into those areas or medication into those areas. it's a very exciting field, very complicated biochemistry obviously. >> and for pfizer in particular, now that people have kind of looked past its covid pipeline, for moderna this was a big issue, as well. the company seeing some pessimism about whether it can bring to market in a broadway the covid vaccine. it is also looking to cancer drugs to be the next big thing. i think angelica peoples is at one of the big european conferences. >> and apple falling today on concerns about weak demand potentially for the iphone 6. it hasn't even started selling yet, and they're worried about it. when apple sneezes its suppliers get pneumonia. you is see some of the big -- you can see some of the big moves here. i guess the concern is this apple 16 is going to enable a.i. applications, but that those applications may not be right now ready to go. >> contra the fed, you want big bang, whiz bang sort of

attention-grab figure you're trying to drive a big upgrade cycle. and the announcements of the lineup last week didn't -- made it clear a lot of features aren't going to come until october. what's the urgency? there you have it. news out of intel just moments ago. let's get the details. john? >> hey, we've got the announcement here. it's just crossed the wire. the biden-harris administration announcing intel has been awarded an additional up to $3 billion in direct funding under the chips and science act for what's called the secure enclave program. this is about manufacturing leading edge chips for the use of the u.s. government. intel was already higher for the day, 3%-plus, now it's close to 4%. this is probably not the last announcement that we're going to get from intel today. as a matter of fact we're going to have the ceo on "overtime" later today, broadcast exclusive

on this news. but this comes as intel has been under a lot of pressure over its foundry program, that's manufacturing chips for others. it's something intel has not specialized in in the past. it's tens of billions of dollars that intel has been spending on it at a time when its core business has been challenged by the shift in attention away from cpus which intel specializes in, more to gpus being used in a.i. for accelerators. we'll see what intel further has to say about this and more when pat gelsinger joins us, broadcasts exclusive. for now intel stock moving higher on the additional up to $3 billion from the federal government under the chips act for the secure enclave program. >> obviously i think the concern here is for the military, that they're not reliant on chips from china and that kind of thing. last hour, our guest was buying intel shares buthe wanted to hear the company say we're not

trying to be number one. we're happy to be in a niche and area of demand especially from the u.s., perhaps from the government, that can be steady and consistent, and that that would be enough for shareholders at this point. >> intel's got a long climb to be number one either in chip design where nvidia clearly on the a.i. side is far ahead of everyone else, and then on the manufacturing side where tsmc is really the leading foundry to the world and has been for quite a while. so you know, does intel want to be number one in ten-plus years? i'm sure shareholders would like to hear that eventually, they like to plan to get there. right now investors really want to hear that there's a way to get to viability in the foundry side with solid customers there and to really keep -- keep things going on the design side as they try to balance up the business, if they're not going to separate the two which gelsinger said he does not want to do at least to this point. we'll see what hear me has to say. >> we'll be watching "overtime"

this afternoon. the dow hitting a high of 41,572 in what's normally a tough month, september. with the uncertainty of the fed decision looming, mike santoli joins us in the nyse with more on what we have to describe as rather bullish optimism here in a month which is usually not such a pretty month for stocks. mike? >> yeah, tyler. at least an attempt to look at the glass is half full or at least half full. an interesting dynamic where the experience of august is maybe being mapped onto september, which is a nasty downside move in the first week of the month associated with a somewhat disappointing or frustrating monthly jobs report. and then we got reassurance in both months and also last week in september where the consumer seemed like maybe it was holding together better, visa had positive things to say about activity. and the market attempts to climb again. you look at the s&p 500, we made a near approach to the former mid july highs back in august, fell away again.

and now we are attempting it again. there's been rotation under the surface which does suggest some firming up of the average stock relative to the big growth stocks over the last few months. the bank stocks have just really destroyed the nasdaq 100 which was the lowest of most of the strength going back. this clearly means that people are positioning for an economy to hold together with the fed cutting rates. so that whole soft landing scenario, whether it has to be 25 or 50, very unclear. although as kelly was saying, fast, deep, easing cycles, typically have been associated with recessions. so you don't necessarily want to see that. or is the spread so big right now between where rates are and inflation that 50 basis points would be okay? some of the chatter in the last several days to me seems to be trying to make a 50 basis point cut feel safer than it might otherwise. of course, it still a tossup. you see the dollar index making near two-year lows. >> right. and that's got gold up, copper up, having a host of ramifications. we appreciate it.

michael santoli. ken stern is president of lito adviser. he caps the fed to go with a quarter-point cut. good to see you. >> good to see you. >> there's a couple of sort of things in the cross currents here's. there's japan's raising rates or dollar is falling, that's 50/50. is there anything that tells you we could be set up for the big move we saw in early august or early september? you know, in other words, to the downside? >> well, i don't think so. i think the market is not going to like either, quite frankly. it's none of the above right now. if it's 25 they're going to argue it should have been 50. if it's 50 they're going to say what else is going to go bump in the night that we don't know about. and that's the issue that we're having right now. i think with unemployment where it is, i think spending's coming down a little bit, debt's coming up a little bit. but it's not catastrophic for the consumer. so what's the upside for the feds to go 50? that i don't see. >> well, people might just say the upside is rates are literally too high. you know, let's say we're at 5.3% because of the range, and it should be somewhere like

3.5%. that's what the market's pricing in. why not go 50? >> yeah. that's exactly why if they do go 50 i think the issue is is they're more afraid of a reinflationary environment than they are of actually dipping into a net negative economic slowdown. i think that's better for them than seeing inflation hike back up. >> how do equities react in either scenario? 50 or 25? >> i think we got to look at a big picture with it, too. we had a good year in the markets. it climbed the wall of worry. we had a huge year. we have a big number, earnings are slowing down, big number in terms of the valuation. earnings are slowing down -- >> 30 some all-time highs on the s&p 500. >> that's right. and so again, long term, i love the trend. we have favorable fiscal, favorable monetary policy. this is setting up for a really good long-term trend. sort term this is not the time to be sticking your neck way out there. i think this is a time to be very cautious. >> do we -- i'd be curious of

rick thoughts in a second. do we have favorable fiscal, and do we still have favorable monetary? if we're talking about the start of a rate-cutting cycle when things might -- i mean, maybe that will be supportive on the margin, but we've seen that tightening in real rates lately at the same time that the fiscal's running out. and there's that you will with the election talk about what this or that candidate's going to do to fix that. can we count on that support? >> right now i think you're going to -- especially in an election year. we always talk about election protection. but i don't think candidates are going to be talking about raising taxes right now. and i think that is the kind of rhetoric that the market actually feeds into and supports. but we do have high valuations. that's what you're saying, the market has seen all these new highs. i think september and october are going to be true to form, the volatility in this silly season will continue. >> especially post corporate earnings window. yeah -- >> mike santoli, jump in here with any thoughts that you might have. i'm curious how you see the next three months setting up in the market. >> yeah, there's no doubt we've rebuilt the valuation, but the

last time we were here, around 21 times earnings, when we first got here, let's say, in july, it felt as if investors were positioned more bullishly and were expecting nothing but good things. i think we've actually rebuilt a small wall of worry if that helps, and i think you can usually hang on to a higher valuation if the fed is cutting at the same time that earnings growth is broadening out. now that's what the consensus says is going to happen. the 12-month forward s&p earnings forecast continues to climb even as the third quarter gets cut. so whether that's unrealistic or not is going to have everything to do, again, with whether we have a soft landing or not. i think that's why the market's going to have to keep the economy on a short leash and constantly test the premise that, in fact, we're hanging in there. that's why i don't know that we're going to run away from the upside even if you get a relief rally of some sort perhaps post election. >> all right. mike, thanks very much. ken, stay here as hopes for a half point cut remain. we are seeing weakness in the

u.s. dollar. falling to a 1nine-month low against the yen. you follow currencies closely. what do you make of this move? >> you know what, whether you look at the yen or dollar index, the same information is coming through. according to my work, we're hovering on aclosing baits is basically at the lowest levels on the dollar against the yen since july of last year which is the same for the dollar index. let's go to the board. realize first of all that we settled last year at 101.18. we're down on the year. our most recent on the 27th of august, low close was 155. we're basically hovering right there. but here's the key -- at the beginning of the year, we were pricing in quite a few eases. so right at the end of last year, we had a spike down to 167. then we were all the way up, and now look at -- august and september, one, two. three, four hits basically

around 150. not only on a intraday basis but closing basis. when you take the psychological issue of 100, look back to history. we only had four sessions in july of '23 that actually closed under 100. to find the sustained close under 100, you have to april, '22, and before. basis point i'm trying to make is the dollar index is chipping away at support, and it looks like it's going to go through. the first part, any close under 100.5 should garner a major test of 100. if we close below both levels in the same week, you're going to see a big hit on the dollar index, and you could see that dollar/yen get into the 132 to 133 area. >> all right. stick around. we've going to bring back mike and ken to talk about this. what does a lower or weaker dollar mean to equities? >> you know, it's interesting. i actually think the carry trade is going away, right? so we're not talking about the carry trade anymore.

so what is the pivot? the pivot with the lower dollar, i think that you have to think about the consumer. i think you have to think about international markets. i don't like the international trade right now at all. i think that we're going to stay more domestic and favor domestic. >> help domestic stocks. >> it usually -- the issue is when you -- interesting when you say that because we've had such a performance of underperforming stocks. the big question is do you go in thinking if we get a slowdown that's the one year they outpoerchl leave it and say you can't afford to have it drag on your portfolio? >> so many people would say there's such great value international. the value is there. you have to look at modern portfolio theory, you have to do this rotation. i can't believe you have to do a rotation. if there's no catalyst, if the trade isn't there and then you have the factors with the currency and the devaluation of the currency, i don't see the catalyst. >> not to take this completely down a rabbit hole, but i don't know if you saw the report on europe's competitiveness.

so the question is are these cyclical forces that can be ballast in a portfolio if the u.s. stumbles, or are there secular changes that make u.s. stocks outperform over what's now been a 10, 15-year time whoizon and -- horizon and may not look back. >> that's right. it may be more secular -- might be more secular. yeah. >> rick, jump back in. thought? >> i think when you look at the bank of japan, the bank of japan needs to find more ways to tighten up policy and get rates a bit higher. they're not going to do it aggressively. they are going to lay low. and if you look at the european sector, you nailed it. germany used to be the manufacturing engine of the world. and through horrible energy policy, their electric costs for manufacturing are trip whale they are in the u.s. i don't see much. this changing. the issue in europe where the euro is the biggest effect on the dollar index is actually going to nullify or at least negate some of the other negative issues.

so that should give some buoyancy to the dollar. but the wild card really is the dollar/yen and the bank of japan and how aggressively they move rates up. i completely agree with ken. here at 140.5, not to see more carry trade vibrations in the market is a positive. >> well, let's put a pin in all of this, bring it back home. your two themes are baby-boomers and technology. >> the baby-boomers are all the wealth and all the money. we're taking over 50%. why are we discounting it? when we have these cyclical trends, and we have economic cycles, their money continues to be spent. and i like it. when we see the economic slowdown and you see leisure, travel, when you see health care start to take a little bit of a back seat, that's when you want to lean in. and then technology, i mean, again, we had two weeks ago this huge down, the vol up. now we're just kind of looking for a home. i think if we see some more downside pressure with september

and october vol coming back, when i think we'll see again, i'm going to look at that as an opportunity. >> all right. ken, thank you very much. appreciate it. >> thanks. >> thanks for coming in. >> thank you, as well. quick power check as we head to break. on the positive side, oracle, awe-time high rallying for a fifth straight day. and now up more than 60% this year. upgrading it to a buy from hold saying it sees a sustainable pipeline for the company. on the negative sign you got micron, the chipmaker sliding after morgan stanley slashed its price target by $40 to $100 a share saying growth is falling increasingly into question. coming up, we'll get some more tech headlines of the day when "power lunch" comes right back.

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welcome back to "power lunch." apple is falling today ahead of the launch of its latest iphone amid concerns about the upgrade's super cycle. steve kovak has the latest numbers. >> this is an interesting one. it looks like right now the iphone 16 may be off to a slow start, coming off that first weekend of preorders that began this past friday. a lot of analysts this morning pointing to lower ship times as a signal that demand is weaker than it was last year for the iphone 15. i'm going to point to an analyst at tf international skurkts pretty much the best apple analyst out there. he says unit sales for the iphone 16 are down nearly 13% compared to the 15 last year, and it gets worse when you look at the pro models, the most important models they sell. the iphone 16 pro down 27% year over year, and the pro max down 16%. other analysts noticing the same thing over the weekend with ship times.

but bank of america analysts adding a caveat saying apple may be producing more of those pro models this year which explains those reduced ship times. also, overall these preorder ship times are not a perfect gauge of new iphone demand, but they are the best that we have right now. and they do directionally tell us how demand can compare to the previous years. and this also raises the question is the street's narrative about a super cycle holding up? so far we're not seeing much evidence that this is going to be an a.i.-driven super cycle. a lot of that is because a.i. is not going to launch on these phones for another month or so, and it's going to be a slow rollout for more features after that. the a.i. rollout could gunk up the true view of dhaemd we're seeing with the iphone 16. we're doing to get more -- going to get more data friday and next weekend when it goes on sale in stores. >> was it always apple's plan to announce the hardware which they always do in september ahead of the implementation of new

sof software? >> back in june, june is typically when they do the software stuff and say here are all the new features coming to your iphone. then they come out in september and say oh, we have this new iphone that can do even more stuff than we told you about in june. so when they showed us these a.i. features in june, they were a little fuzzy on when it would roll out. now we're getting a clearer picture. some of the features are launching this year, the chatgpt integration we talked so much about, the ability to make custom emojis. summarizing all your text messages. things like that. the really cool stuff, did you watch the jets beat the titans this weekend? >> i did not. >> if you watched that, in the commercial breaks every other commercial was an apple commercial for the new iphone 16s. but fwthey barely talked about e phone, it was about the intelligence. that's what people need the phone for, but it's not ready yet. it's only going to be ready in a limited way this fall and later this year. >> is that the one with the actress who winks at the camera? >> bella ramsey. i thought it was a good

commercial. >> this to me was like the ipad flattening. >> i loved it. i thought it was cute. >> she's blowing people off. yes, i read this. no, i -- and this whole idea to be playing into what people think is the bad side of technology. i'm probably overreacting. >> our colleague made the point, what boss wants you not to read his email and just get a light summary? maybe it doesn't work that way. but it does show off -- >> more significantly, though, i was surprised to hear that the street thinks this is going to be a super cycle. is that the expectation? >> that has been the most bullish analysts -- super cycle, super cycle, super cycle. you got wonder is a lot of that because of the a.i. thing? a lot say yes in part. a lot say it's just a lot of people have old phones, and they're ready for a new phone. we keep our phones now three to five years, there's less compelling reasons to upgrade every year like used to in the early days of the iphone. that's been the narrative around the phone the last six years or so. >> like cars we hang on to them

for longer and longer and pay more and more. >> i'm a huge nerd, there is a 14, i'm going to deep another couple of years -- deep another couple of years. >> thanks. fedex is set to report first-quarter earnings on thursday. can they deliver gains for investors, too? we will get that trade next in we will get that trade next in "market navigator. (man 2) what's my next step? oh! ugh. (girl) dad. (vo) you break it. we take it. (woman 2) we can take it." (vo) trade in any phone, in any condition at verizon for the new google pixel 9 with gemini. (man 2) give me a recipe with these ingredients. (girl) let's do that one. (vo) only on verizon. you'll find them in cities, towns and suburbs all across america. millions of americans who have medicare and medicaid but may be missing benefits they could really use. extra benefits they may be eligible to receive at no extra cost. and if

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welcome back to "power lunch." quick check on the markets. the dow is up nearly 200 points, but off the record all-time high that is hit earlier today. the nasdaq is down a half percent. the s&p 500 essentially flat. we are watching shares of smart sheet, according to reports blackstone and vista equity are nearing to buy the software maker for $8 billion. now to the "markets navigator." almost all eyes are on the fed this week, one technician believes we really should start looking at fedex. here to explain why and how to trade it, jay woods, chief global strategist at freedom capital markets. jay, fedex's numbers come out on thursday. that would be one reason to dip in. but you're going to look at some of the technicals on this stock. >> yeah, we have to follow this stock closely. it's the most heavily weighted

stock in the transportation average. the transports are 3% away from an all -- 52-week high and on the verge of a major breakouts. for dow theorists that want to see the transports go to new highs with the industrials, this is a stock you have to watch. let's talk about how we traded. you ready? >> take me through it. >> all right. let's go. you want to look at this three ways. there are two ways i would buy, one way i would tell it. let's talk about the daily chart going back a year. this historically gaps after earnings. we were down 12% three quarters ago, up 7.5%, then up 15.5%. so watch the gaps. if you're trying to g.m. bell how it's going to trade into earnings, you got to be careful. if it gaps lower, watch the 200-day moving average. that can be a good buying opportunity. that has been the barometer of health in this stock for a while. it should hold there. if it doesn't, use it as a stock, you get out. if it gaps hire, i -- higher, i

want to look on a weekly basis. go back five years. it's beautiful, a nice round ed bottom. you get a 10% pom. that is a major breakout and will take the transports with it. you want to buy that gap above 3.15, use it as a stop to protect yourself, but if it breaks out of that pattern, we're talking 350 minimum, over 12 months you could see a 400 number in fedex. so and then the one side i don't like, if it does trade higher and it just goes slowly, there's no real action in it, watch 315 as a resistance level. and you may i want to trim, take profits, and wait, use a buy stop to buy the stock on a breakout when it eventually go does get above 315. so there are three different ways to play it. but watch those gaps. it's going to be an interesting day. >> mind the gaps. let's recap the gap here. gaps lower, what do i do? >> we're buying it as long as it holds at 200-day moving average

go. it breaks below you stop out and wait to get above it. >> gap's higher, what do i do? >> a strong gap above 315 you want to be long in name. a breakout on a long-term weekly basis. you want to be in it for about 12 months. >> thank you so much. you look like you're in a nice place out there. looks like california to me. >> oh, yeah. it's -- this is hard work, but someone has to do it. >> glad you're there. kelli? >> still able it rattle off those trading points. thanks. rising prices for food and groceries continue to be a thorn in the side of consumers. we'll dive into the economics of it all and where prices are headed here and which stocks to buy as a result of that. that's next in our "powerhouse ueinblprt."

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prices rising 2% year on year, eggs 28%. how do you pay pricing pressures in your portfolio? our next guest talks about diversifying away from just food but has lowered price targets for players by upwards of 20% on consumer concerns. joe feldman, senior analyst at t telsy advisor group. let's start with footprint inflation. what's the -- food inflation. what's the story? >> food inflation has been relatively stable on a year-over-year basis raining around groceries at 1%. food away from home, restaurants, is running higher in the mid single digit, 4%, 5%. it is better to eat at home than the grocery store to do. that the pressure that the consumer feels is when you look at inflation on a two, three, four-year basis when you stack those up, you're facing some pretty heavy price increases that haven't really gone away. >> eggs is one area where price

increases have been sort of end endemic, right? >> yeah. that's a great one where you do see it -- it does tend to be volatile, sometimes it goes up, it goes down. last year it was down quite a bit. the year before that it was up quite a bit. so there is some volatility in some of those core commodities. those usually get passed through quickly. the big issue is also just that i think the large cpg players there are, you know, having to price goods at a higher level. and that passes through to the consumer. the retailers like walmart, kroger, issue that pushing back and trying to keep prices down for the consumer in the end. and i think they've been having some successes as of late. >> why aren't those big players standing up and telling the country what they're doing? they tell wall street analysts and sort of ways like, you know, taking margin or donating margin, that's my favorite. but you know, if they're doing this and pushing back and trying to lower prices, should they be standing up and saying, hey, had we're fighting for you, and instead they're getting attacked by the politicians? >> yeah.

i think that's absolutely right. and i think, you know, the big retailers like a walmart, costco, kroger, they're doing -- and target even, doing a good job telling the consumer, hey, we are fighting for you. we're trying to lower prices. they just came through the earnings season in the past few weeks, and a lot of the discussion was about, you know, starting to finally see some giveback from the cpg companies where they're helping to fund some promotions and discounts to bring prices down even further. i think the big cpg players that are creating the products and the big suppliers, they really see that they need to bring volumes up because price isn't going to happen anymore. i think prices are definitely on the way down or at least staying stable. so you really need to see that pushback and the help from the retailers. walmart does it the best, and they do bring the lowest prices. every pricing study i've done among the cheapest place to buy groceries. >> so let's talk a little about price gouging. do you see it in your work?

or -- or have the price increases that have taken place since 2021, '22, have they been more opportunistic than malevolent i suppose? >> yeah. i think early days back in, you know, the start of pandemic and for that first year or two there was some supply issues. and there was concern. people were doing a lot of stock-up trips and visits to the grocery store. so prices were elevated at that point. then it continued. and it feels like, you know, the suppliers maybe got a little bit too greedy. i think the grocers tend to pass it on. they've been trying to keep prices stable. when we look at our pricing studies on a year-over-year basis for the past two, three years, you're only seeing kind of flat, maybe slightly down from the retail standpoint. so they've done a good job. they also leveraged their loyalty programs, their fuel regard programs to bring -- reward programs to bring border crisis price down for the

consumer. >> we've ask thursday to others because many of the prices are disinflating, how do you invest in disinflation? i noticed that, what do you do? >> the dollar stores have been under pressure. feels like their core consumer, that really lower to lower middle income consumer, has been under a lot of pressure. they're visiting the stores pretty frequently actually, traffic's up t dollar stores. they're just not spending as much. they don't have as much in their wallets. what you're seeing is that middle income consumer, that in prior times of pressure would trade down to the dollar stores are not. they're staying at walmart. they're staying at kroger, costco, target, other places. so that -- we like those big guys because even with grocery prices having stabilized and maybe we think maybe coming down a little bit over the next few months, that could mean more spending power for the discretionary side. so walmart, target, costco, they sell a lot of discretionary goods, as well. that's why i think those big

guys are well positioned for this environment. >> that's a great point. we'll leave it there for now. appreciate your time. >> thank you very much. >> joe feldman with the telsi group. over to bertha coombs. >> a three-judge appeals court panel in washington today heard more than two hours of oral arguments in a challenge brought by tiktok over the new law that could ban the app in the u.s. if it is not sold by chinese parent company bytedance. according to nbc news reporters in the courtroom, the panel of judges appeared to be sympathetic to the claim from tiktok and creators that the law violates first amendment speech protections. both sides have requested the panel rule by early december. boeing announced sweeping cost cuts today including a hiring freeze. a pause on nonessential travel and a reduction in spending on its suppliers. the airplane maker is trying to conservative cash as it tries to negotiate an end of the strike

of more than 30,000 machinists. and target announced today it will hire about 100,000 seasonal workers for holidays this year. in a move to keep shoppers coming in, the retailer also says it will introduce more affordable holiday items including thousands of stocking stuffers under $5, and holiday toys under $20. toys under $20. that's a pretty good deal. tyler? >> all right. thank you so much. so drug makers are racing to develop new treatments that can deliver radiation directly to cancer cells wherever they are in the body. we'll get a live report when "power lunch" returns. (♪♪)

♪ well i was raised by careful hands ♪ ♪ yeah, they made me who i am ♪ ♪ so i'm off to see... ♪ we inven. we design them. we build them. and one day, we have to let them soar. ♪ i'm always coming home ♪

welcome back to "power lunch." shares of pfizer are nearly 3% higher today as the company announces success in a trial for

a drug to help cancer patients avoid weight loss and other symptoms. elsewhere in pharma, new technology is being tested by several companies also pursuing cancer treatments. angelica peoples is here to explain. this is all coming out of a big european conference, is that right? >> the pfizer data is coming out of that european conference. this is another trend that we wanted to highlight. so bristol myers-squibb, and eli lilly have spent money to get drugs that deliver radiation directly to cancer cells. it's surprising that big pharma is piling into the space because these drugs contain radioactive material. so making and distributing them isn't easy. they're good for only a few days, and only specialists can handle them. novartis is proving it's possible even if it means for legwork. one doctor saying it's manageable to treat patient? a different way. another saying it's easiest to plan for treatments every six

weeks. the only thing he worry bu busbusiness -- worries is a snowstorm in new york. it treats tumors and the opportunity is bringing the willing to to many more cancers like lung and breast. if that pants out revenue could be in the tens of billions. it will take time to see if that work out, but executives say this as becoming an important part of cancer care. it's one to watch. >> this is a deceptively simple question, but how does the drug know where to go? >> it's a good question, and that's because there is markers that we're looking for. for example, psma, that's one that's expressed by prostate cancer cells. so the drug looks for that psma, and then goes to the body and then list something called a ligand to goes and finds and tracks down cancer cells and brings the radiation there. and kills those cancer cells. >> an injection? >> it's an iv, but it's either an injection or infusion. so the one patient we talked to is saying it takes only nine

mac minutes. his drive is an hour and 15 minutes and the procedure, the drug, takes much less time. >> how much do they cost? i imagine wall street's been ahead of this maybe for years seeing this coming. which stocks are the biggest beneficiaries? >> these are expensive drugs. and that's also one reason why it's particularly advantageous for pharma if you will because these are not something that you will probably see generic versions for because there's so complicated. it's not something that's easily replicated like a pill. so if you go ahead and you make a big business out of this, it's something that you'll probably be able to bank on for a long time. again, novartis is the leader here. they have two drugs. but we are also seeing bristol myers, they're far along, acquired a company for $4 billion. and that's pretty far along. we also have astrazenica, eli lilly, and sanofe getting in on it, too. >> are they in the space or in the space they're trying to help with the symptoms of -- >> no, pfizer, they're working on a different drug to.

patients who are -- they have something called cancer caxia, where you lose your appetite and that leads to muscle wasting. and that's a problem, you lose a lot of weight, and it can make your symptoms even worse. so they over this weekend presented some data showing that their experimental drug can help. that's something we'll be watching, as well. >> always nice to hear. i know the stuff is expensive and whatnot, but for people dealing with these -- if they could do something like you said for lung and breast, that would be great. >> thank you very much. appreciate it. >> thank you. wall street has its eye on wednesday's fed decision on interest rates. we will bring you three different stock picks with three different fed scenarios in a fresh newly cooked pre-stock lunch. as we head to break, cnbc celebrates hispanic heritage this months. here is eric lopez, ulta chief supply chain officer, sharing his story. ♪ >> what i want businesses to know about my community is just how to tap into the passion

around the culture andthe relationships. the hispanic community is deep ingrained in these and by tapping in you'll find there's dedication, excitement, energy, creativity, and innovation, which will ultimately lead back to the business success.

time for today's "three stock lunch." fed focused today. why not? stocks for three different philadelphia scenarios we might hear on wednesday. here with our trade is chief equity strategist and mia capital management. scenario one a quarter point cut with bias in the statement or the press conference to less aggressive cutting down the line. in other words, more caution in the narrative, but action on the table. you picked alphabet. why? >> correct. i did, because, tyler, that's my steady as she goes scenario. that's a senate from the fed everything is steady and that the economy is in okay shape and not terribly worried. that, to me, speaks of an environment when the economy

doesn't slump. mag serve been ride again and google down 20% from highs. about as cheap as it gets. with a stable economy should bounce back nicely. advertising revenue strong. also, nobody ever talks about it i like the waymo piece. autonomous driving. not really paying for it. steady as she goes scenario says google time. >> and more and more people are realizing what that company is up to and its potential partnership with google last week. aim waymo as a kicker. fed scenario two. medium panic pap 25 basis point cut and bias for more aggressive cutting. for that this surprised me. your pick is domino's pizza. explain. >> right. call this the, we're a bit concerned scenario. buy domino's pizza because, again, not unlike google down to a ten-year low on valuation. in this case international sales issues. i think it's got a floor here.

pizza is a recession-proof food. management has a plan to turn things around. in this middle scenario, people will still go out to eat, order in, but watch spending. a low-value of restaurant chain down on its luck but has staying power and a strong brand. i like domino's in that snare joe. >> third to scenario. what might be described full-on panic. i don't know about that far, but a half-point cut. your pick is hershey. >> yes. i admit. kelley smile about this. >> i am. >> i call this scenario, yikes, behind the curve but don't tell anybody scenario. the fed trying to catch up. the economy slowing too much, in their minds. they, of course, seeing much more data then we are. that 50 basis points stuff will make me kind of nervous. i'm going to reach for staples. i particularly like hershey as i mentioned on the show before,

because they're going to benefit, been crushed by higher cocoa prices, starting to alleviate. strong management keeping earnings solid even with those tough cocoa prices. when that starts to go the right way, and the economy starts to slow, that's the time hershey can really shine. a sweet pick. >> yeah. chocolate makes everything go better. right? >> right. >> thank you. >> and especially when 80% this year. cocoa disinflation. want to hear more subscribe to our podcast on any platform you sto. t i listen to 1.3. don't tell anyone. we'll be right back.

>> 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 back. dow's up 230 points today as we come off, tyler a big week. s&p up 4%. came within 1 percent of all-time highs of the summer and still at 50/50 what's going to

happen with the fed meeting wednesday. >> dow at a record high earlier today. a little off it now. above 41,000. who would have thunk that? back four, five years ago, when in the middle of a pandemic. before we go, "monday night football" fans breathe a sigh of relief. the disney blackout on direct tiv over. restoring espn, disney and other networks that the company owns to the directv channel line-up. two-week hiatus. directv saying both parties are working to finalize a new multiyear contract. >> yeah. now rumors about whether they will merge with dish. perceived at loser. lost a lot of subscribers and sports chains, upset by the loss. >> they were. in an establishment apologizing to the fact couldn't broadcast the washington game. anyway, talk college. assume harvard, princeton one of the other ivies had the best salary prospects. a new report found the number

one school to yield highest salary new graduates is m.i.t. >> there you go. >> rounding out the top five. princeton in, naval academy. >> and uva usual does does well. i don't see them. >> come on. thank for watching "power lunch," everybody. >> "closing bell" starts now. wack to "closing bell" i'm mike santoli in for scott wapner. stocks holding firm for last week's gains and inching toward record highs as investors cling to soft landing hopes. spenceful fed decision thrown on top. a look at scorecard with 60 minutes to go in regulation. dow earlier touching a new record high. briefly intraday. s&p 500 made up for earlier modest losses while both indexes soundly outperforming nasdaq on the day. a burst of rotation way from