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expecting volatility throughout the session. >> a little, but generally speaking it has been green arrows across the board and all about china. stocks are soaring there again as the country gets even more aggressive on stimulus, this time more fiscal. $280 billion of sovereign bonds they'll issue this year. big number. >> it is sort of the, hey, we're going to do whatever it takes to get the economy going again. and they moved over from relying solely on monetary stimulus now to bringing in the fiscal weapons. >> it has got people thinking back to mario draghi's comments, he said, i'll do whatever it takes to defend the eu. david tepper made comments this morning, he was very bullish on china on "squawk box." take a listen. >> i thought that what the fed did last week would lead to china easing, and i didn't know that they were going to bring out the big guns like they did. and i think there is a whole

shift. >> well, when asked what he was buying in china, tepper said, everything. and he said it not once, not twice, but three times. >> i think there is going to be a lot more to discuss here. some of our guests are very -- i don't want to say bearish, but cautious if this could be anything more than a two-month run, acknowledging, fine, two might have rally, but will it be more than that. >> let's check with china and the economic stimulus, the big underpinning story of the markets around the globe today, the economic stimulus there. joining us now to discuss this is anna ashton, founder of ashton analytics and marco popich at bca research. anna, how big is this economically? it does seem as though china is pulling out the stops here. and realizing, number one, they got a weak real estate sector and a stag assistant economy and they got to do something.

>> right, it is definitely pretty big. the biggest stimulus since prepandemic days. whether or not it is enough, i think that remains to be seen and part of the reason that remains to be seen is because there is not an indication that the government is in any way sort of scaling back its focus on developing new industries. and so, that leads to questions about whether or not the support that the government is ruling out is going to be sufficient to prop up the industries that are already the major engines of the economy. >> so, marco, obviously from the get-go here, chinese stocks have gotten a big boost. stocks around the globe have gotten a big boost. how do i take what the chinese did today and apply it in my own portfolio? what should i do, what should i not do? >> well, i think what you need to do, start looking for, is

value. especially in emerging markets. especially in beaten down currencies, and economies. for example, brl could be a very interesting buy at this point. >> what is brl, for those who don't know, brl? >> brazilian real is a good example of a currency that is going to be pretty correlated with what china does, almost to the extent where it doesn't really care what isically in br. this is a very broad potential move by china that should benefit cyclicals over defensives and, you know, global stocks over u.s. and most important for u.s. investors is that if china has truly committed to putting in a policy bottom, and actually starting to focus the fiscal policy, in that case, the dollar should also start declining, which it already for the past two months. so, that, for a u.s. domicile investor means just buy anything foreign at this point.

and obviously, what else do i have to add to david tepper's point? he's a legend. he's saying buy everything in china. can't disagree with that either. >> he explained in part why he thinks these measures are so dramatic that were just announced. take a quick listen to what he said about the efforts lawmakers there are pursuing. >> believe this or not, swap facilities to buy stocks. encouraging buybacks of stocks, encouraging buybacks of stocks. this is china, all right? this is -- stock buybacks, not only encouraging it, lending you money to do it. and giving money like where you can put money out and you no losses, if you want to do it, you know how that thing works, you have more money to put up and you don't lose money. that's a great deal for me. >> why would they be pursuing such aggressive measures like this? >> because they don't have another means of really

stimulating economic growth in the economy with, especially with the real estate market floundering sort of indefinitely. they really do have to look to the stock market to try to boost growth. and the question is, is this going to make any difference to unemployment, is it going to make any difference to consumer confidence. >> marco, let's talk about -- something very broad, the idea that xi jinping is certainly the most autocratic authoritarian leader china has had since maybe since mao. the economy in china did extraordinarily well when there were less autocratic leaders in charge there. is this then what he's had to do here and the state of the chinese economy, is it a tell in any way about the relative virtue of authoritarianism in control of an economy versus

democracy? or a less authoritarian hand in the running of an economy. >> you know, i think it is a lot simpler than that. i think when we had basically in china over the past five years is secular stagnation. this isn't that much different from what happened in the u.s. and europe after the great financial crisis. you have the popping of the real estate bubble. just like in europe and the u.s., chinese policymakers, they actually faced a very human response to a leverage crisis, which is to focus on moral hazard, on deleveraging, tightening everyone's belt, lots of sort of focus on prudence and not letting local government expand. that hasn't worked because it hasn't worked anywhere. the only way to deal with private sector deleveraging is unfortunately to actually leverage the public sector. it took the u.s. and europe some time to figure that out.

it has taken the chinese some time to figure this out as well. that's why two days ago, the announcement by the financial regulators were actually not that bullish. it was just more of the same, more interest rate cuts, monetary policy easing. the reason there is a bullish signal today is because this surprising politburo meeting came on top of the monetary policy decision from two days ago and today there is a complete shift in verbiage on fiscal policy. we don't know what they're going to do, that's why i agree there is still a lot to figure out. what kind of fiscal measures they're going to implement, but the focus on fiscal is the game changer today. >> that's interesting. so build on that, and, again, pursuant to those who might say, okay, this say two-month trade and it always is with the trade higher with china, you can kind of make some money in the short-term, but in the long run, it is a losing trade. is that realization on the part of policymakers, okay,

government borrows more debt, clean up the private sector, come out of this okay. is that profitable in the long run, do you think, for investors? >> better chance of being profitable in the loung run tha others so far. i think the question about whether or not there is something to be drawn in terms of, you know, the benefits, relative benefits of democracy versus autocracy and managing economies is less about this and more about, you know, industrial policy, the effectiveness of industrial policy and you still have a chinese government that is quite committed to its industrial policy of developing new industries. and those new industries are not yet big enough to absorb the employment to create the employment that is needed in the economy and boost consumer confidence. so i think that is really a key here that can't be left out of

the equation. >> sure, even the carmakers which have been very successful, ev ones, are now being tariffed all over the world, preventing their flourishing. there is a couple of different questions here, you mentioned u.s. investors should think about investing in any stock market outside of the u.s. because of the weakening dollar. tepper did manage maybe to be cautious on japan if it starts doing too well as a result of china's success, they could have to raise interest rates and upset the apple cart and mentioned u.s. valuations may be stretched. do you agree with all those ovgs or where do you see -- what is the portfolio mix post all the announcements that people should be thinking about? >> i would favor japan and europe equally. i don't think the boj is going to overtighten. i think there is going to be a nice currency tailwind as well to investors and japanese equities you can argue japanese equities didn't appreciate enough over the last 18 months, given the weakness in the yen. i think that divergence was because the main growth engine for japan, ie china, was on the

sidelines. most investors i speak to, they don't want to touch emerging markets at all. it is -- you hear the same things, everyone is in indian equity market, everyone has completely run away from latin american markets, politics in brazil, mexico, southeast asia is not causing anyone to get super excited. and i think that this move by china does give us a bottom for emerging markets and i think you can start seeing some real trends there and some inflows. also just commodities should do better which will help commodity producers as well. my mix would be equal to europe, japan, and emerging markets. >> those are some big bets for investors who have gotten comfortable sitting in the u.s. and maybe a little india in recent years, potentially a big shift there. thank you for your time today. really appreciate it. and over here in the u.s., investors are sending stock prices up. good economic news helping that

as well this morning. jobless claims back at a four-month low. gdp growing 3% in the spring. gross domestic income revised higher. it strengthens the case for a soft economic landing, especially after last week's rate cut and the prospect of more. further ahead on the show, we'll speak to don peebles about the economy and real estate and more. as we head to break, let's check in on the chips with two key names on the move, micron to the upside, up 14% on its strong outlook. robust a.i. demand boosting chip revenue, it comes when money is on the table for anything a.i. related, even openai is looking to shift toward a for profit model. on the negative side, reports emerging that justice department is probing supermicro after a former employee accused the company of accounting violations. "power lunch" will be right back.

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welcome back, everybody. debate over the wealth gap has sharpened in recent weeks as both presidential candidates try to woo middle class voters. new reports from gallop shows how wide that gap can be. they say that the top 1% of income earners hold 50% of all stocks worth about $21 trillion. the bottom 50% of income earners owned 1% with about 430 billion. against this backdrop, there is a push on wall street to expand equity ownership for the rank and file. a sale announced by kkr today gives tens of thousands of dollars in special payouts to equity holders at a construction company. here with more on this announcement, leslie picker. >> hey, tyler. yes, we're actually joined by pete stavros joining us from an event where kkr announced a deal. he is the global co-head of private equity at kkr. thank you for joining us. you announced this deal today to

sell geostabilization international to leonard green, a return of five times the equity invested by kkr. you're at this company event in denver where you announced that all 900 gsi employees will receive payouts with the most tenured getting $325,000 each. the average wages for these workers is about $80,000 per year. what were their reactions like at this event? we watched some of the footage coming in and heard one person say, for example, very excited, they could buy a new car and this is going to help them get that new car. >> well, it took a minute for the news to settle in. we have over to my right here, there was a table, we handed out envelopes where people actually got the specifics of their payout and what the math meant for them individually. your comment about the car, part of the announcement was, we always do this, we prepaid for

12 months of financial counseling this time with ernst & young and taking care of everyone's tax preparation and tax filings. we want to make sure people pay their taxes on time, of course, but that the money goes to the highest and best use possible. a number of our colleagues at the beginning of the journey were in debt and now some are walking away with $325,000 and we want to make sure the money goes to the highest and best use. >> what would you say from a business standpoint here. did employee ownership in this company directly correlate to that 400% return, the upside in the sale? is there a direct correlation you saw in this case in particular? >> there is no question. i'll give you one statistic. the turnover rate of the employee base, and this is an epidemic in the country, was almost 50%. so think about that, that means this company was rehiring its whole workforce every two years. and i wish i could tell you that was uncommon, but in america, in an average company, 40% of

workers are leaving every year. that quit rate at this company is now 17%. so think about the benefits, the productivity, quality, customer satisfaction, doing jobs the right way, on time. there is no doubt in my mind we would not have gotten the 5x result for our investors had we not been able to create this culture of engagement where people want to be at the company and stay at the company. >> may i just observe this is not the typical face of pe that a lot of people associate with how private equity companies relate to their workforces. have you or kkr done this in other instances with other companies that are part of your portfolio and am i remembering, were you on "60 minutes"? >> "60 minutes" did cover this story earlier this year. we started this effort 15 years ago. we now have done this with more

than 50 -- we have currently 50 companies with more than 120,000 front line workers who have ownership. and this is across all industries, we're doing this in other geographies, not just the united states and we exited more than ten of these investments. >> so you've done this -- >> you followed this model before of making large life transforring payouts to workers? >> we have been doing this 15 years. every time go it, we get a little bit smarter. i wish i could tell you this were easy. you mentioned it is not common. it is hard. it sounds so elegant, like, we'll give workers ownership and great things are going to happen, they're going to be happe happy, they're not going to quit, that's not what happens. it takes year to build special cultures where employees feel respected and trusted and included and don't want to quit. and then start to get engaged in the job as the business partner and help you deliver great

outcomes for customers which creates great outcomes for our investors and creates wealth for the workers themselves. >> you were in d.c. this week advocating to update the 1974 erisa law that can help incentivize more companies to give equity to employees. what exactly -- >> i think i know what the question was, which was i was in d.c. meeting with members of the house and the senate and talking about a huge opportunity to modernize the esop laws from 1974. an esop is a tax structure that gives companies a tax incentive to share stock ownership with front line workers. it was a part of the erisa act. there was a big boom in activity in the '70s and ' 80s and today we're not getting enough esop activity and this model holds tremendous potential. if you want to talk about inclusive capitalism, which i hear all the time and it drives me bananas.

if we talk about capitalism being inclusive, the rewards have to be more broadly shared and ownership in my view is the way to do it. let's dig up the old law, let a's make it more viable and change the economy once and for all. let's get workers involved in wealth creation. >> my dad would talk about 401(k 401(k)s and esops. >> i don't have -- >> we lost pete's ear piece connection there. i had an esop years and years ago in the '70s when i worked for time incorporated. i think it got rolled up into a 401(k). but i remember it. >> i think they're by far the most vocal about this industry and are others starting to follow suit? >> yes, others are following suit. there is a coalition of private equity firms that have been at the forefront of this and now what stavros is doing in

washington, he was going to members of congress and telling them that there needs to be an update to the law. 100% esops, companies that are 100% controlled by the employees of the company, they have tax ince incentives. that's what they're looking to change. private equity, you could take a position in a company, you may not take 100% ownership. some cases they do. but they're trying to also expand this to public companies, other private companies. >> i was watching him. i doesn't mean to catch him off guard by asking him about the sp "$60 "60 minutes" piece.

>> in the pandemic, when there is a massive labor shortage is when they were emphasizing how this could help with talent retention as well. >> exactly. >> leslie, thank you. a huge new ipo is hitting the market. bioage riding the popularity of weight loss drugs. saudi arabia is pressing tethd with oil reduction hikes lar is year and that's why energy and lower are oil today, despite china stimulus. stay with us. (aaron) i own a lot of businesses...

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welcome back to "power lunch." there you can see materials and industrials leading the s&p today. materials are up about 2% getting a boost from china stimulus measures. the worst performing group curiously enough are the energy stocks down about 2% and oil down as well. saudi arabia may be ready to pump more, even if it does mean lower prices. crude is below $68 a barrel now. pippa stevens is here with more. the timing of this, you know, otherwise you have to imagine oil would be doing quite nicely. >> what is happening today is this all comes on the heels of

an ft report which says saudi arabia is giving up trying to stabilize prices and now focusing on market share. that marks a big shift for them. for so long they have implemented production cuts in an effort to keep prices stable to fund all their building projects. now they're focused on the market share. while they have kept production at steady levels, we have seen production outside of opec grow including here in the u.s., places like brazil and guyana. so finally they are maybe fit up. so this isn't so much of a surprise. they will start bringing output back on december 1st. they were supposed to start returning that production in october. at the end of august, they pushed that out to december. not so much of a surprise. maybe what the price reaction today tells us is some in the market thought they would stay committed to the price side versus the market share side. >> it is tricky. they need money. at some point they want to have

the market share and balance the budget. >> and they shouldered the vast majority of this. there are other members of opec including iraq and kazakhstan that are perennial overproducers relative to their costs. that's frustrating. and at a certain point, saudi arabia is saying we don't want to see all this market share and demand is weak. china should provide a boost. we have seen a structural decline in some areas like diesel. trucks are now powered with lng so that demand has dried up. >> what a perfect recipe for u.s. consumers can wake up to stronger stock markets, stronger growth and lower oil prices. >> watch hurrican watch helene. >> it is now a category 2 storm, expected to make landfall on florida's big bend tonight as a

category 3 or 4 storm. officials are warning of 10 to 20 feet of storm surges, life threatening flash flooding and extreme wind damage along the i-95 corridor up into tennessee. in new mexico, a judge will hear arguments over whether to zis the criminal conviction against movie armorer hannah gutierrez reed in the shooting death of cinematographer halyna hutchins. she is asking for a mistrial or dismissal, alleging prosecutors failed to share important evidence at that trial. and finally, daniel ricardo, popular formula one driver, featured in the netflix series "drive to survive" was fired today by red bull racing. he'll be immediately replaced by liam lawson. the 35-year-old ricardo only finished inside the points three times this year, he won eight races over 14 seasons with last

victory in 2021 for mclaren. back over to you. >> big news in the formula one world. thank you. appreciate it. i'm a big fan up the street and watches it every weekend morning. still to come, stocks may get a big lift. after the break, wll se'ee what one of america's top investors thinks. hy 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 exactly (slurp)

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welcome back. here is a glance at the mark ets with the small caps leading the way for finally for those who have been waiting for the fed cut for them to do so. the s&p and the dow are higher. all of this fueled by china's aggressive stimulus. u.s. investors getting signs of hope from positive gdp and jobless claims data this morning and it all comes after the federal reserve's half point cut last week. the jumbo cut was welcome news for the commercial real estate sector. it has seen property values plummet 19% since 2022 amid a drop in transactions. my next guest says the rate cut

is a double edged sword, could hurt housing affordability. joining us now for more is don peebles. i think you've been the one pushing for a half point cut. you must be very pleased. >> i'm pleased, i was pushing for the rate cut at 50 basis points. i'm pleased. it is a little late. i think it should have been done at the last meeting and they'll have to do more as we go forward. >> do you think they're going to have to do more? why? the way i'm looking at it, it is all coming up roses. we have china stimulus and the u.s. data look okay and the uk wants to be more business friendly as we just heard prime minister telling andrew ross sorkin, you know, do we need a series of bigger cuts still? >> if we want to give americans the access to the american dream, which is including home ownership, i think we have to do more. 50 basis points is not enough to pull back the increasing cost of

home ownership and housing costs. we're at a point in america where more than half of renters are paying more than 30% of their income in housing costs. we're qgoing to see affordabiliy continue to be a problem unless we get rates down because rates will make housing more affordable to purchase and developers like me will start building when we get rates down to where we can make a profit on building. >> maybe i'm puzzled. in our introduction we said you cautioned a cut say double-edged sword that could hurt housing affordability. i would think based on what you said it would help because it would lower rates and therefore the monthly payment that a person might have to pay on a given loan of a given amount and might encourage real estate builders, developers like you tork bu to build more housing. how would it hurt?

>> what i'm speaking of is what will hurt is any kind of financial stimulus by the government, a $25,000 down payment by the government for first time home buyers. i think by getting rates down, it will create more activity. the reason that rate cuts to have an impact on pushing pricing up is because we have such a small inventory. we haven't been producing much new inventory since the beginning of covid. and so we haven't kept pace with demand and so real estate is a simple business, supply and demand business. and so demand will increase when interest rates drop and supply is not there to meet it. >> i get it. you lower the rates you get more people coming in because the rates are lower. you don't have more supply coming on, it is going to push up the price. >> correct. >> very interesting. >> don, because you're here, we

talked many times about the different metro areas you think are thriving and not thriving and investments you made and so forth, i saw the news about new york city mayor adams this morning and thought of you. i'm curious, if he ends up leaving office, many people are a little concerned about what would happen to the city. are you amongst those who are concerned about what these developments all could mean? >> i think new york city and the future of new york city is bigger than one person. and i think the mayor occupies a critical role in new york city's future, but you have a city council as well, and in fact i think the headwinds that we have seen and the real estate mark vet et have come from the city council. i think stability is important. we're a long way from seeing the mayor resign, and long way from him being tried and we are in a society where you're innocent until proven guilty. we have to step back and take a look at this. i think ultimately, new york is on its way back.

i think for a must be of different reasons, but still got to deal with some of the structural issues, as the migrant crisis continued to affect new york city's quality of life. those are going to be bigger issues than if the mayor were forced to resign, which i don't see right now. >> what is going on in miami, don? >> miami leveled off. there was a big rush because new york city was closed down during covid. and people were moving to florida, which was wide open for business and wide open to live your life and so many people relocated. and with remote work, we had movement of many businesses opening up satellite offices or primary offices in south florida. that rush is over now. things have stabilized. new yo new york has bounced back. people have come back to work. things are leveling off. but there is still -- if you look at the price increases in south florida, year over year, they're still in positive territory. but it is slowing down and leveling off, still a very

strong market. >> don, thank you as always. you educate me. i come out of every discussion a little bit smarter. thank you very much. appreciate it. >> thank you. sticking with the economy, after the break, deeper insights into the treasury market. yields mostly higher today. our next stop is the cboe when "power lunch" returns. >> crypto watch sponsored by grayscale. -cologuard®? -cologuard. cologuard!

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welcome back to "power lunch." stocks off their best levels coming down from the sugar high of chinese stimulus earlier today. that stimulus comes after the half point cut last week from the federal reserve. so, tailwinds for the stock. how is the bond market digesting the easing from two of the world's biggest economies? and the stimulus in china? for that, let's go to rick santelli. rick? >> yes, tyler. let's start with what the treasury market is doing. a good way to measure the treasury market was the auctions this week.

what did you think about how well the short to middated curve instruments were bid? >> i think people are really gravitating to the two to five-year point. the fed is starting to cut. you like that. you see the credit bond auctions are going very well, a lot of debt placement. >> if we talk about the china stimulus packages, i would like to hear your thoughts on it and i'll weigh in a little bit. >> my view has been what we're seeing is a transition from made in china to made by china. china is trying to sell their brand. they can't get u.s. manufacturing to come in there anymore. they're trying to sell, they're having some success, their economy is too weak. this is something to buy them time. that's their only way out of it. i think we'll see aggressive competition with china. >> competition i can live with. in my opinion, if you think china is going to be what it was ten years ago with the relationship with the west, i

don't think so. globalism best stays in the rear view mirror until china figures out they need more of a consumption economy, export economy, i don't see it. to the fed, any thoughts about the handoff from inflation fighting to the labor markets which are purportedly weak, i don't see the weakness showing up anyplace, we have seen strong confidence, strong durable goods. >> people are way too comfortable with the soft landing. it is not go to be a soft landing. a bumpy landing. some regions do well. there have been huge errors in the data. they do the seasonal adjustments wrong. we take way too many away. i think we start getting september and october jobs numbers they'll look fine. 130 to 150. the fed overreacted. we won't have to cut anywhere near as fast as the market is pricing in. >> to me, soft landing, it depends where you are in society. if you're a wall streeter, a soft landing is a high

probability. but if you're a 25 to 30-year-old, no house, student loans, i'm sorry, the average price of a car over 40 grand, that doesn't sound so soft to me. >> that's a great point. when we watch this roll over to recession, we're watching the 25 to 35-year-old employment. they're makie iing a lot of mon but don't have much savings. i think that will eat into consumption quickly. that's the part i'm watching. big tech, do they start losing jobs and that makes it into a recession or bumpy landing. >> last few seconds, the fed's balance sheet information comes out thursday. last week it is still right over $7 trillion. in the end, the balance sheet is really big. i think that the long end is definitely going to be steepening more. your final thought? >> we should be above 4% on 10s and back to talking about the deficit. the debt ceiling, they agreed to raise it. they have taken projects for themselves, they spend more.

if we get gridlock, the deficit is going higher. >> no such thing as gridlock. the baseline is going up. peter, thank you for joining me today. kelly, tyler, back to you. >> great stuff, thank you, both. rick santelli on the stock front. power check on the plus side of the s&p, southwest airlines raising its summer revenue forecast. authorizing a $2.5 billion share buyback and the shares are rising 7.5% now. diamondback injury, fang, worst day in two years. energy related stocks in general lvg e ssing the declines, invointhpoible ramp in saudi oil production and in spite of china's stimulus efforts. "power lunch" will be right back.

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with what time we have left in the program, we want to draw your attention to an ipo that hits the market today. obesity therapy firm bioage. it's been front and center as the company behind the blockbuster drug ozempic found itself on the hot seat yesterday on capitol hill. bob pisani here with more on bioage and the ipo market. >> such a pleasure to see both of you. it's a rare appearance in the heart of cnbc headquarters. bioage priced 11 million shares at $18. the original price talk was only 7.5 million shares at $17 to $19, so they shares more shares than anticipated. opened up 25% from its ipo price. the lead drug candidate is in phase 2 clinical trials. when used in combination with glp-1 weight loss drugs, the drug can help increase weight loss while preserving muscle

function. there are studies with zetbound and wegovy. ipo rz running above last year but still way below normal levels. 104 ipos have been raised so far this year but only $24.7 billion raised. in a normal year, going back to 2000s, 2010s, we would expect to raise at least $50 billion in ipo proceeds. this has been subpar for three years running. still hope springs eternal. we do have the fourth quarter. next week aerospace standard engine aero is set to put $1 billion ipo. also kindercare, solera could raise $500 million. move could be decent sized as well. and there's big names still out there, stubhub, for example, seatgeek and ingram micro, all seem possible as ipos, maybe even inspire brands.

they own arby's and dunkins. china hired morgan stanley for a possible ipo in 2025. i keep waiting for the big ones to come. it's amazing -- >> they just want to stay private. >> i think the problem is a lot of them, particularly in the tech space, don't want to expose the private market valuations they have obtained to the public market because they know they're going to face a down round, particularly in tech. the numbers were so titanic in 2021 and 2022, the rounds they got in the private funding rounds that they don't think they can reproduce them. they're trying to hold on as long as possible. the problem is, our viewers sit there now, can't get access to the private market. so, these companies are middle age companies by the time they go. it's very depressing. remember the 1990s when companies went a little early and somebody said, oh, well, they take a while to mature. now we have the opposite problem. now we have geriatric companies that want to be private. >> good to see you. the ipo environment has been

hit or miss of late as bob detailed over the past few years. investors have been burned on high-profile ipos, particularly consumer companies, rent the runway, all its market value gone. beyond meat and peloton down big. maybe there's hope. instacart has been a steady gainer since its ipo a little more than a year ago. reddit up as well since its debut, as well as arm. are there names out there worth buying? let's bring in chief equity strategist at mia capital management. it seems from my notes, chris, you favor not the ipos or near ipos, but the ones that have come out in the past and been pummeled, like zoom? >> yeah. when you ask me that question, i thought, well, there's some stocks that were really expensive in the pandemic when they came, and i just haven't looked at them yet. he got to tell you, they're kind of interesting. let's look at a couple of them. zoom is the poster boy for

pandemic ipos. actually came in 2019, but obviously it rose to prominence when everyone stayed home. the stock is now down 88%. it's a lot like the ones you showed, beyond meat and others. but now it's really kind of interesting. it's $20 billion market cap but over $7 billion they have in just cash on their balance sheet, no debt. free cash flow is strong. they're not burning that cash. they're growing it. they're buying back stock. it's 12 times earnings. the growth it's great but it's an established franchise. i'm talking to you on a zoom link right now. so obviously big, important, successful companies like cnbc are using zoom. so this the one, i think, you want to look at again. if you're like me and you thought, oh, it's just too expensive, look at the math. it's kind of interesting. >> 12 times earnings. it's very average in a good way. it no longer stands out as being super overvalued. >> almost cheap.

>> right. the next one real quickly, chris, is a much more controversial name lately. airbnb. walk us through this briefly. >> i think the problem with airbnb isn't so much it's down. i think it has a successful business model but we've never seen it go through a recession. it's a travel company that was really expensive. it's dropped. it's made more money, even at a lower price. now it's about the same valuation as booking. i think if you buy it ahead of a downturn, it makes it through the downturn. i think investors will come back and you'll have yourself a good investment. i like the airbnb, even as you say, it is controversial. >> quick look at kenview, spin from j&j. quick throughout there. >> it's interesting to buy an established company. it was founded at j&j a little more than a year ago. this is the kind of company a private equity or a big cash flow rich health care company might want to buy. terrific brands. it's got tylenol, neutrogena,

l listrine, baby shampoo. this is the kind that won't be a public company in two years, at least there's a good chance. >> wow. >> they're playing our song, chris. thanks. thanks also to bob pisani. and thank you for watching "power lunch." >> maybe the ipos will pick up after today. who knows. "closing bell" starts right now. welcome to "closing bell." i'm scott wapner live from post 9 at the new york stock exchange. this make or break hour begins with central banks on the offensive from china to the u.s. and several points in between. and that is giving a further boost to global stocks today. we will get insight from former fed vice chair richard clarida to go. let's check the scorecard. the major averages all higher. several china-related names like freeport, caterpillar, baidu, and others like wynn, they are surging today, as is micron following its earnings and