♪ kelly has strong feelings about a lot of things. anyway, welcome to "power lunch," alongside kelly evans, i'm dominic chu. the nasdaq is slightly lower but higher for the week and with only one trading day left, the month of september is, well, i mean, you can kind of see there. it's been a pretty solid day and

month for the overall markets, kelly. >> we just have to point that out because this is a total break from what we've experienced for the last five years now, down 6% on average. the end of september is supposed to be worth -- he's right. i do have a lot of feelings about a lot of things. meta is also up 8% while apple is down slightly. both had big events. both introduced new devices, so is it just about the products, this reaction, or is mark zuckerberg a better front man now while tim cook is quiet and more understated? >> they talk about the idea of evolutionary versus revolutionary, and for apple, it was revolutionary under steve jobs and evolutionary under tim cook, but you know, when you're a founder of a mega cap tech company like mark zuckerberg, maybe there is some kind of, i don't know, disconnect between operators versus those who kind of dream the things up. >> he's got the mojo right now, and investors like mojo. stocks like it too. it's also been a great week for everything china. two big etfs tracking chinese stocks are soaring. the fxi is up 18%, and the kweb,

which does technology and internet names, is up 26% or so in a week for an etf, that's massive, and it just speaks thematically to this idea that for a long time, remember, it wasn't so long ago that some of the pundits out there said china was "uninvestable." >> absolutely. by the way, we're going to dive into china specifically here, but traders are looking to the whole ecosystem now to emerging markets, i'm hearing more optimism than i've heard on that in a long time. hope springs eternal, by the way, on that front, to japan to emerging asia to the whole -- everything that wasn't working as a consequence now, they argue, can potentially work. >> traders and then traders like david tepper who's buying "everything." >> in china. >> exactly, in china. >> speaking of which, the biden administration's tariff hikes on chinese imports are also going into effect today. there are 25% tariffs effectively now on chinese steel and aluminum, 15% tariffs on

solar cells from china and the tariffs on chinese evs are quadrupling to 100%. china announced a stimulus push where they plan to issue nearly $285 billion worth of sovereign debt. what impact will it all have on the global economy? let's ask dennis and the senior policy analyst from longview. dennis, haven't had a chance to get your thoughts on this. what is the significance? major, minor? >> when you go back to 2009 or '10, the chinese did something like this and put in about $400 billion. now, they're talking about half that. the chinese economy, as you know, is much higher now. i think it was $17.5 trillion last year. i think that what the chinese are doing is taking a first step but not an ultimate step that i think they need to deal with their economy, because they still have a third of the economy in the tank because of

their very bad real estate market. >> so, we all know the -- and dennis has utlined them in book form, the many challenges the chinese are facing right now, so when someone like david tepper comes out with the kind of conviction he displayed and says to buy everything in china -- he says, i'm not that smart, i just listen to what they're saying and the conviction they have behind it, and he believes, and others believe, that they really have that conviction right now. do you believe that as well? >> well, kelly, i hate to be the bearer of bad news, but i think what we see -- and i don't want to underestimate this move. this was significant. what it speaks to me is an urgency of now, and i stress now. to put a floor under the economy, to try to reach that around 5% as xi calls it, gdp target for this year, but i

don't want to go beyond that because i'm not seeing what the long-term narrative really is. i would personally be a little bit more cautious. i do think that these recent moves are significant. don't want to downplay them, but i would say that these are urgency of now, not long-term, durable, sustainable moves to do what dennis is talking about, and that's improve some of the structural issues that we see in the chinese economy. >> dennis, it's dom. the structural issues are why that uninvestable kind of characterization came about. it came about at a time when the chinese government, the chinese communist party, the ccp, was having this massive crackdown on all the major tech companies under the assumption that they were getting too powerful, too big for their britches and they needed to be reined in, so how could you invest in a country or companies that had immense amounts of government oversight? that's still the play, and that's still the case, right? >> i'm still very concerned

about china. i'm concerned about the fact that, as a forward investor, and i work for a number of them that invest in china, there is so much government control now being put down upon so many of these companies that i'm not convinced that china has really changed the -- the rules of the game. they're saying, we're having problems, please help our economy grow at 5%, please come and invest, but i'm -- mr. tepper's certainly more smart than i am, but i would be very reluctant to make a major investment in china today, understanding that they have significant underlying problems. >> not that he wouldn't be aware of that. part of this is a valuation story more than a fixing the economy story. he's saying there are stocks trading at a major discount, still growing double digits, and peter made a similar point. he said, in spite of chinese leadership's efforts to the contrary, the middle class there is still emerging and he believes still going to be the

biggest factor on the global stage for the next 10 or 15 years. is there still significant went-up consumer demand and should people invest accordingly? >> kelly, i think the answer is the consumer in china has not been buying anything for the last four years. the reason is that most of the middle class has their money 80 to 90% invested in real estate, basically, that they hold. that has been declining and declining, and no matter what xi jinping seems to be doing, the chinese consumer is saying, no, i'm going to continue to save my money, step back and wait. what we saw this week from the chinese, i think, was good. i mean, it showed the government is taking this seriously, but you're dealing with trillions of dollars worth of problems, and so if you're going to say, i'm going to put up $400 billion here and maybe that will help, i'm still not a buyer. >> all right, dewardric, i've mentioned, and dennis has as

well and so has kelly, the chinese government and its role. let's talk about our government in the u.s. and its role vis-a-vis the investment thesis in china. i want you to put your government hat back on just for a brief moment and talk about the restrictions on exports, chips, a.i., everything else that has caused so much friction between the u.s. and china. does that then lead to a certain amount of that conflict or friction with regard to the upside for chinese companies if the u.s. is becoming increasingly more, maybe, antagonistic is the wrong word, but you get my point. >> dom, listen, i think what we have seen in the biden administration, certainly over the last couple of weeks here, is a continued attempt to put what they consider to be protective measures in place to protect the u.s. economy, particularly some of the industries that they think could be harmed by flood of chinese goods. the phrase you hear around washington now, dom, is, preventing a second china shock.

of course, talking about, in the early 2000s, when we saw the markets flooded with all sorts of good that cost jobs in the heartland, and so the biden administration, and i suspect whatever the next administration is, dom, will continue to look at some of these tools to do preemptive protection around u.s. industries. will that cause more tension with china? absolutely. we're seeing china already announce investigations of their own to try and hit back at some of the things that they see as unfair trading practices, but i suspect this will continue, dom. it's what countries figure they have to do because they can't see another method of doing this. the wto has not worked as it relates to some of these issues, and so states have taken the tariff tool as the one tool to try and protect their industries. >> that's an important macro point as well to make at the conclusion of this, that the wto hasn't worked or hasn't

delivered maybe what everyone had hoped. gentlemen, we'll leave it there for you. dennis unkovic, dewardric mcneal. >> the question of whether stimulus will be enough to boost china's economy does lead to a similar issue now for the united states. so, will tariffs be enough to uplift american manufacturing? our next guest says, band-aid fixes will not suffice, you actually need innovation to power that kind of movement. plus, sticking with that china theme, we'll trade some names that could benefit from a long-term china rally in today's three stock lunch later on in the show. "power lunch" is back in two.

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craig here pays too much for verizon wireless. so he sublet half his real estate office to a pet shop. there's a smarter way to save. comcast business mobile. you could save up to an incredible 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities. switch to comcast busines internet and mobie and find out how to get te latest 5g phone on s with a qualifying trade-i. don't wait! call, click or visit an xfinity store today. welcome back to "power lunch." former president trump vowing to go after google if he gets re-elected. let's bring in eamon javers with the details from washington. >> this is now the second time this week the former president trump has threatened a publicly traded company. remember earlier in the week, the former president threatened

john deere if they moved some production to mexico with 200% tariffs. now, the former president on his truth social social media platform is threatening google. here's the post from the former president of the united states. he's upset about google rankings and how google displays stories about him. he says, "it has been determined that google has illegally used a system of only revealing and displaying bad stories about donald j. trump, some made up for this purpose, while at the same time revealing only good stories about comrade kamala harris. this is an illegal activity and hopefully the justice department will criminally prosecute them for this blatant interference of elections. if not, and subject to the laws of our country, i will request their prosecution at maximum levels when i win the election and become president of the united states." here you have a candidate for president of the united states, kelly, unilaterally accusing a large publicly traded company of illegal behavior. doesn't seem to be really any due process behind that decision to accuse them of a crime and then threatening to put the

department of justice on them once he's elected if they don't conform to what he wants, which is positive stories to be displayed in google's search results. so, the former president of the united states here certainly trying to work the refs in terms of media coverage of himself. we'll see if it has any impact. >> eamon, i'm trying to think back. is it a violation of free speech if they -- if the platform is seen -- said to be defaming him by -- no, again, assuming there's anything to prove here. maybe there isn't. >> well, you remember, conservatives have made the allegation for a long time that social media is biased against them, and puts, you know, liberal content more visible in their search results than conservative content. and they've said that anything that social media companies do to censor and change results is inappropriate. now, here is the former president making the allegation that he wants them to change the results in his favor, and so the positive content is featured

against him. i mean, under the first amendment, companies have the right to print and publish whatever they want, so long as it's not defamatory, and of course, under libel law in this country, the history is, it's really difficult to defame a public figure such as a candidate for president of the united states. those people are pretty much a free fire zone in terms of media publications to say whatever they want about them. so, the tradition in the united states, kelly, has been that there is an independent media, and we do have the ability to print and report what we want about presidential candidates. this presidential candidate in this case clearly doesn't like that from google. >> all right. eamon javers, thank you very much for that, and i will point out both eamon and kelly, we did reach out to alphabet and google for a comment. we have not heard back from them yet, but when we do hear back, we will bring those comments to you as soon as they happen. meantime, politics to business, there doesn't seem to be much agreement between viept kamala harris and former

president donald trump except on the need to increase manufacturing capacity in the u.s. here's what the candidates said at separate events just earlier this week. >> we will invest in biomanufacturing and aerospace, remain dominant in a.i. and quantum computing, blockchain and other emerging technologies. expand our lead in clean energy innovation and manufacturing. >> but with the vision i'm outlining today, not only will we stop our businesses from leaving for foreign lands, but under my leadership, we are going to take other countries' jobs. for years, they knocked the -- the word "tariff" properly used is a beautiful word, one of the most beautiful words i've ever heard. it's music to my ears. >> all right, and while harris hasn't expressed the same support for the tariffs that the biden administration did enact new tariffs today on chinese solar cells, semiconductors and

medical supplies so the story keeps evolving. our next guest says tariffs are not the answer. again, not the answer, but that innovation is. so, joining us now for more is jake, the ceo of gecko robotics, which is, by the way, number 42 on cnbc's 2024 disrupter 50 list of disruptive private companies that could be public some day. jake, takeus through your thesis and your explanation as to why it's not just about manufacturing, but we have to progress beyond that. >> well, thanks for having me on. tariffs are, obviously, something that both candidates, vp harris through the biden administration supported this and obviously trump has as well. but i think what they do is point to the problem. everyone talks about tariffs but the thing that isn't getting enough attention is how manufacturing needs to revitalize in the united states.

robotics and automation are necessary to make us a country and create a dependency that's not relied on foreign adversaries, but we can make our own things smarter here in the u.s. >> jake, there's been no shortage of times and examples in the history of the united states that innovation has led to massive leaps forward in terms of our progress, economically, politically, geopolitically, and everything else. but there are some that argue that the environment today is not like that, and that does not foster innovation like it has in the past. how do you respond to that, and how do we get to a point where innovation matters again? >> well, i think that what's incredible is i wrote an article calling for a mccain moment in manufacturing. in 2015, late senator mccain went to silicon valley and implored venture capitalists, entrepreneurs and the tech community to revitalize what he

saw was a losing of the advantage on the defense and innovation side for the d.o.d., and that produced, in 2019 to 2022, $33 billion of investment from venture capital, which is double the amount that was previous into the defense sectors and now, tech sector thinks that defense is cool, and it's incredible. that doesn't exist right now in manufacturing. i was just at the "financial times" at the biggest mining summit, and i was the only member of the tech community that focuses on robotics, a.i., and automation. i think what it tells you is that we need, more than ever, a mccain-type moment in the manufacturing sector. >> jake, you live in pittsburgh, or you're headquartersed in pittsburgh, which is possibly going to be the deciding state for this election. there's a huge fight over u.s. steel and nippon steel. what would you do to create and preserve jobs in pennsylvania? >> yeah, well, i think that, you

know, over the past 50 years, seven million manufacturing jobs have been lost in manufacturing, and i think that the rhetoric around needing to revitalize manufacturing is so important, but it's important also to remember that talent and those that want to make things better, and the best minds will typically go to the hardest problems. we have to show that manufacturing and we have to incentivize the sector of manufacturing as being a place where the most innovative things are happening. if you want to drive talent and cutting edge fields to give america the advantage in mother manufacturing, you must incentivize it. you begin to incorporate technology that can give us an advantage that no other country has. i'm going to stand right alongside

>> we have to get back to an environment where innovation matters again. jake loosararian, thank you very much. >> thank you. all right, and by the way, don't miss jake at our cnbc a.i. opportunity event in new york city on october 1st. you're going to hear from him and other industry leaders about how a.i. is changing their businesses for the longer term. just scan that qr code on your screen or visit cnbcevents.com/evolve, kelly. >> 250 employees he has. great to see. the need for innovation extends into the boardroom as well. meta's successful product launch this week overshadowing apple for the first time. many applauding zuckerberg as a visionary founder shaking up tech, while some are criticizing tim cook for playing it too safe, although there is also strength in stability. what's better for an investor? an innovator or an operator? that discussion when "power lunch" returns.

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stay ahead of your moderate-to-severe eczema. and show off clearer skin and less itch with dupixent, the #1 prescribed biologic by dermatologists and allergists, that helps heal your skin from within. serious allergic reactions can occur that can be severe. tell your doctor about new or worsening eye problems such as eye pain or vision changes including blurred vision, joint aches and pain, or a parasitic infection. don't change or stop asthma medicines without talking to your doctor. ask your eczema specialist about dupixent. welcome back to "power lunch," i'm kate rooney with your cnbc news update at this hour. israeli prime minister benjamin netanyahu is cutting his u.s.

trip short and heading back to israel immediately. it comes after israel launched a strike on hezbollah headquarters in beirut. defense secretary lloyd austin said the u.s. did not have advanced warning of that attack, which reportedly targeted hezbollah's leader. and former president trump met with ukrainian president volodymyr zelenskyy today for the first time in five years since the infamous phone call about investigating the biden family that led to his first impeachment. trump vowed to end the war if he is re-elected with a deal that's "good for both sides". in brief remarks, zelenskyy said he believes that he and trump have common views that ukraine should prevail. vice president harris is headed to arizona this afternoon for her first trip on the southern border since winning the democratic nomination. her campaign says she plans to call for more border resources and to highlight former president trump's role in killing a bipartisan border deal earlier this year, dom. back to you. >> thank you very much, kate rooney, for the headlines there. as we head out to break, a quick

power check on the positive side of the charge, so to speak, of the s&p. walgreens up as much as 7%, its largest percentage increase since december of 2023, bouncing back from its lowest low since september of 1996 earlier in the week. meanwhile, on the negative charge side, hp shares are lower today. share buybacks will be the sole earnings driver. that is your power check. positive and negative. we'll be right back. at ameriprise financial our advice is personalized based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work.

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welcome back to "power lunch." take a look at the yield on the ten-year, just around 3.75% today, down a bit after that pci showed inflation slowing this morning, but it's just the second time since the fed's rate cut that yields have fallen.

for the most part, across the curve, they are higher. rick santelli joining us now from chicago. hi, rick. >> hi, kelly. indeed, if we look at what's going on, you see the charts of 2s and 10s for the week it should jump out at us that both yields, especially tens, were significantly higher. we're hovering right above 3.80% as you see. but today's pce numbers, weaker spending, weaker income, and everything was rather tame on the inflation front, you could argue core year over year was a little hotter but the markets overlooked that. and if you consider what's going on with the two-ten spread, just think about it. before the rate cut, kelly, that spread was at 4%. it was at 4%. and on wednesday of this week, it closed at a 27-month wide at 23. now, granted, it's given some back. it's hovering right around 18, 19 now. we saw the last week at 15, but maybe fx is the big surprise of the week. of course, the chart you're looking at there is a 16-month chart of the dollar versus the

yuan and indeed, it is at the lowes lo lowest level going back to may of '23 and what's fascinating is that all stimulus globally is fungible. we may see all the equity markets around the globe start to do a little better. china is involved in all aspects of the global economy and the dollar index, if it close under power and a half today, it did tuesday, if it does, technicians will go with that short and as it sits now, we're hovering at a 14-month low close for the dollar index. >> dollars and yuan, two biggest economies in the world and their currency. stay right there, please, stocks. stocks are set to finish a september month on a high note, despite seasonal weakness. let's bring in scott clemens. scott, the rick report was interesting about the macro picture here. just how does it set up now,

given the currency and rates dynamics permeating all across the globe and then coming, rubber meets the road, in a record high u.s. stock market? >> so, i think we're at that interesting turning point in which monetary policy is shifting, and those turns tend to be accompanied by heightened volatility and heightened uncertainty. the direction of interest rates is pretty well established. the pace, on the other hand, is that push and pull between inflation and economic activity. i think the reason we've seen the ten-year rise is the market narrative now is that the economy's actually in pretty decent shape. so, yeah, the fed can probably still lower interest rates but in response to inflation, not in response to any kind of economic weakness. that doesn't mean that narrative will hold, but the push and pull of that narrative is really what's going to drive investor sentiment between now and probably the january/february, second or third fed meeting from now. >> that push-and-pull tug of war

is playing out in a stock market that keeps going higher, because it's emphasizing the positives here that the economy, as you said, is relatively strong. the jobs market is weakening, but it's not weak. so, what exactly, then, derails this whole process, or can we just expect the path of least resistance, scott, to be to the upside? >> dom, i'm reminded of that old saying that the optimus bistic believes we live in the best of all possible worlds and the pessimist believes he is right. the thing that we're focused on very carefully is that health of the american consumer and household finances. that's 68% of the economic engine. watch how quickly the job market softens. i don't expect a hard landing in jobs. also watch burgeoning consumer debt, close to $18 trillion, a personal savings right that is

still close to decade-low levels and a worrisome rise in credit card delinquencies. none of those things are determinative yet but as we head to 2025, those are the things we're watching carefully to make sure that this economic narrative of a soft landing, to use the old cliche, will still continue to carry through. >> i take your point, scott, but just want to throw this question to rick, which is, what vote is the market casting? it seems to be casting the vote not that we're worried about a slowdown, but we're worried, if anything, about a speed-up, rick. don't you think? or am i misinterpreting it? >> not necessarily speed up but you're not misinterpreting at all. it's that the deterioration is much less in the economy than the fed believes as it uses that as its main reason to start the easing cycle. and what's more, if we really consider that there's a huge segment of the economy, and scott nailed it on every front, but lots of the population does not need credit, so the fed moving rates up and down, the

upside fueled consumption by many in the economy, think about those that are close to retirement. they have good savings, but young people need credit, and what's going on with the easing here might not really be the salve for them because as the yield curve steepens, traders are very convinced that inflation isn't going to be as tame, as cool as the fed believes. there's going to be sticky aspects to it. so, let's consider what we're looking at. we're looking at record debt and deficits. we're looking at the consumers who need credit are getting tapped out on their credit. and we see long dated treasury yields, if you think things like electricity in certain parts of the economy are going to be sticky from an inflation standpoint, then add 150 or 200 basis points to a 2.5 to 3% inflation rate and the long end is not going to cooperate with respect to the fed moves, and much of that isn't going to benefit the biggest market that's hurting the economy, and that may be housing.

>> okay. so, last word, we have just a couple moments left here, scott. let's put a point on this. from a chief investment strategist standpoint, what's the outperformer going into 2025, and really quickly, why? >> in a broad category, i like those consumer parts of the economy that have been left behind. this does not a specific stock recommendation. you highlighted walgreens about five minutes ago. the single worst-performing stock in the s&p 500, and a lot of those consumer companies fall into that category. >> all right. scott clemens andrick santelli, thank you very much. have a nice weekend. >> thank you. still to come, style versus substance. technology is one of the most competitive industries in the world. it moves at a rapid pace, and when it comes to business, it's not for the faint of heart. but in terms of leadership, especially in publicly traded firms, should investors value innovators dreaming up new products or an executive who keeps the eratnsunngopio rni well? we'll debate all of that next. your skin is ever-changing,

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welcome back. this week was a big one for mark zuckerberg and meta. unveiling some exciting new hardware for the first time probably ever, there's actually more hype around those meta products than around apple's, and it seems zuckerberg has been

lying in wait to strike against apple, even taking a subtle jab at cook and company's highly polished product reveals. all this leading to the question, which is better for a company and for investors? innovators or operators? here to discuss, our own steve kovach, along with deepwater asset management's gene munster. welcome to you both. steve, it's undeniable the buzz that meta has right now and the stock performance this year to date as well has been incredibly impressive. >> yeah, and there are two aspects of this, right? there's the headset and then there's the a.i. impa i want to start with the headsets. let's talk about, we started the year, apple vision pro, then couple weeks ago, this snapchat spectacles and then two days ago -- two days ago? two days ago, we have the orion glasses from meta. two of those things are experiments. one of those things has turned out to be kind of a dud. >> but you didn't even mention the real sort of success -- surprise success of all this is which is actually just the

sunglasses, the ray-bans. >> you're excited. you're all in on the ray-bans. >> i've never seen them. i've never worn them, but i keep hearing from people on the west coast that they're starting to see them everywhere. >> what this tells us, we're talking about innovators versus product, right? the interesting thing here is it tells you directionally, we're seeing so much more out of meta. we know apple has the same goal as meta, to create glasses that look like my warby parkers right now and display and replace your smartphone. no one has that. let's be clear. but right now, meta, first of all, they were ahead because they launched first, and look at the content they have. they actually have people developing for these. they actually have games and stuff you can do. it's like a desert when you put on apple vision pro. the development is not there, which tells you that thing is just not selling to developers, whereas the meta headsets are. >> gene, does that -- i mean, jive with what you're seeing from a product evaluator and

portfolio manager standpoint? i mean, we talk about innovators and operators. there's a -- it's a different tool in the same kit. but which one is going to be better for shareholders at the end of the day? >> well, the thing stooech set up was helpful, spot on. i think it really just laid the lines that if you were going to think of this as kind of a match between apple and meta from that perspective, there has been more momentum around meta and innovation, and to the, you know, the higher level question, what's more important to an investor, an innovative ceo or an operator? and the answer is, it's clearly an innovator. an innovator is more important. on that question, more specifically, innovator is much more important. and i was, and i think that what meta showed this week was pretty incremental to what they've shown us from a few months ago, but i think what really stuck out to me is they're putting

the -- their -- the hammer down that this a.i. wearables or face computers like steve was talking about, that this is going to be a big category, and i give them credit for doing that, and give zuckerberg credit. he's a founder, and give him credit for just going after this. they spend $20 billion a year on reality labs. more than half of that -- i think this is a surprise to investors -- more than half of that spending is on a.i. glasses. it's not on quest and ar and vr. i think that innovation wins when it comes to tech. >> so, in other words, gene, are you casting your vote for zuck and meta right now, contra apple in the 2024 culture of tim cook? >> when it comes to which one has more innovation in their blood, if you could somehow measure that, zuckerberg is more innovative. and i think that as far as casting the vote, i think that one's just -- i'm going to be difficult, kelly, i apologize -- it's a hard question to answer,

because if you look at the growth rate of meta over the past five years, they've grown their business by, call it, 68%. apple has grown by 42%. but apple stock's up 195% and meta is up 160%. these are both class-act ceos, no question about that. >> how much of that is buybacks on the apple? >> some of it. >> some of it's buybacks. the revenue growth was slower off a bigger base with apple, but i think it's true that meta's been more aggressive. when you score, it is one other piece that investors should keep in mind too, when we're scoring this, apple did -- cook was behind the car. that was a big part of what his innovation that was and obviously, they pivoted towards a.i. so it's not like they haven't been doing anything beyond vision pro. they've been doing a lot, it's just that you happen to see more from meta because those products get promoted more. >> you know, steve, it wasn't that long ago that we were talking about this notion that mark zuckerberg gets punished every time he puts out something

visionary and wants to put capex behind it but it seems to me in this discussion, that's the right way to go. >> a.i. is such a different thing because it's so much more tangible than what zuckerberg was talking about years ago, the metaverse. that's largely gone from the conversation. he barely said it from his presentation the other day, he talked about steps toward that, but i want to talk about the a.i. bit of it too, because it's really interesting to watch that presentation from meta the other day and see how quickly they have been able to catch up to openai, to anthropic, basically on par, seemingly overnight. they've been at this llama model that they're giving away for free. zuckerberg said if it's not already, it's going to be very soon the most used chat bot out there, just by nature of stuffing it into the apps that two billion people are using it every day. on top of that, they're actually shipping it. apple has yet to ship its artificial intelligence product, and even when it does ship its a.i. next month, it's not going to have everything they said it's going to have yet, and whereas meta, you can do it all

right now. basically, a.i. is revolutionary, and not evolutionary. >> steve kovach, gene munster, thank you very much. great discussion. we could do a masters thesis on this whole thing. coming up on the show, guys, we're going to explore innovation in the a.i. space, speaking of, a nationwide teacher shortage has pushed america's school resources to their brink, so districts are pumping billions of dollars into cutting-edge artificial intelligence tools to fill in teaching staffing gaps and take the busy work off the plate of already stressed educators. we're going to get those details coming up next. ♪ ♪ ♪ ♪ ♪ ♪

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welcome back. shares of nvidia have moved lower throughout the session, took another leg down just now on reports china is telling companies to stay away from their chips. seema mody has the details. >> it's not the first time, but bloomberg is reporting that beijing is pressuring companies to buy locally made chinese chips over nvidia as part of this effort to go local. it comes as domestic players huawei and others are working on their own versions of a.i. chips but have yet to come out with a version that competes with nvidia, and in fact, what we've

been seeing is that more chinese companies and chinese have been smuggling nvidia chips from the u.s. back into china. we also have been discussing how nvidia is working on a customized chip that would appease current u.s. controls for the chinese market, and interesting to see that, now, beijing is trying to push back on these foreign chips coming into the country. we'll see how their local companies respond. >> the next iteration of antagonism between the u.s. and china we talked about earlier. seema, thank you very much. when you think of a.i. in schools, you probably worry about students cheating. but a number of a.i. tools are actually helping students and their teachers. julia boorstin has more as part of her continuing series on the impact around a.i. julia? >> well, dom, new generative a.i. tools are a game-changer for teachers who are trying to do more with less, and a.i. is also powering the next generation of ed tech start-ups. with teacher shortages putting

more demands on educators than ever, this year, teachers are using new a.i. tools to help them do more with less. a leading a.i. start-up, magic school, is used by three million educators across the country. while most of those teachers are using it for free, 5,500 schools pay for a premium version for about $5 per student per year. one of those subscribers, green dot, took us inside one of its 18 los angeles charter schools to show us how a.i. is helping teachers teach. james fiddler is a green dot assistant principal. after a trial period last year, his school just started paying for a full rollout of the software this semester. he showed us how his teachers used the platform's 70-plus tools. for everything from grading and crafting lesson plans to building presentations with generative a.i. >> all of these queries are being answered so quickly. how much time does this save for your teachers? >> teachers are asked to do a

lot to prepare, and so this gives teachers an opportunity to spend less time doing more. >> magic school started rolling out 40-plus tools for students, including chat bots that teachers can customize based on each student. >> the teacher will decide the tools they want to launch to their student. they will customize them, make sure they work the way they want, they're appropriate for the grade level. then, they'll test them in their own playground to make sure they're appropriate for their students, and then they'll launch them to students. >> magic school is one of the 67 a.i. education companies that have raised $518 million so far this year, according to pitchbook. with $3.3 billion invested into a.i. education start-ups since 2020. one of them, good notes, is an a.i.-powered digital note taking platform. it helps students with things like spell check and math equations, but with new technology comes new concerns around a lack of human interactions in classrooms or the potential for a.i. to be used for cheating.

>> have you gotten pushback from parents or from students who are, like, hey, why are you using a.i. instead of just teaching me yourself? >> yeah, so, i wouldn't say from parents or students. i think our district is doing a great job of setting expectations about what a.i. use looks like. a.i. is here, and it's here to stay, and so how do we adapt and adjust to that? >> it's not just the ed tech start-ups embracing a.i. coursera has been focused on a.i.-powered study assistants and course translations. of course, translation, so valuable. >> one of the biggest applications right now. julia, thanks very much. julia boorstin. chinese stocks, meanwhile, seeing their biggest weekly jump in decades on the back of new 'lgi y se sus. wel veouomways to play it next.

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economic stimulus triggering a rally in chinese stocks with

the space seeing its biggest single-week jump in more than 25 years, and that's the theme for today's three stock lunch. here with our picks you can make to capitalize on all that's taken place, michael landsberg, cio at landsberg bennett private wealth management. great to have you here. your first play might come to mind easily for folks, it's wynn. is it too lately to buy it? >> not really, kelly. the issue there is 63% of their business is china. it is a china play, but you're getting u.s. management. what i also like about it is you're seeing those whales, those vip gamblers. it's up 42% year over year, so they're starting to come back and spend money. it's nowhere near where it was a few years back when they first started in china so you've got room here. >> let's talk about luxury retail. they're on the rise thanks to chinese stimulus. bringing us to your next china place, which is hermes.

>> the asian, chinese, all love their luxury brands, no matter where you go in the world, we see that. they only have 33 stores in mainland china but about 47% of their global revenue is asia, x-japan. they spend a lot of money, even on the road, and that's not in that number. consistent double-digit growth on the sales side. they do pay a little bit of a dividend. it's a huge company. we think it's a great way to play that. global brand, but the china emphasis now with more money coming into the chinese market. >> this hermes hadn't come up and i like that you are zeroing in on it. how about this chinese food delivery giant, a stock that's also seen a surge. some say they face risks on the consumer malaise. what do you say? >> they do. obviously, i think pdd came out and said there are issues with the -- with theconsumer in china. meituan didn't see that. they had record metrics in terms of profitability and sales. it's a staple. you have food delivery.

it's god t like a yelp componen to it as well. it's done well brought out to consumers and hotels and restaurants. it's a great story, but at the same time, it's kind of lower level story. it's not high-end. it's a chinese low level, which i think is a way to play it as well. >> michael landsberg, have a great weekend. thank you all for watching "power lunch." we hope you have a great weekend as well. >> "closing bell" starts now. ♪ welcome to "closing bell." i'm mike santoli in for scott wapner. this make or break hour begins with stocks on the verge of sidestepping that scary september we were promised or warned about. the index is holding near-record highs without relying too heavily on big tech. inflation has been tamed and the economy is holding up just fine. here's a look at your scorecard. you see the s&p 500, quite flattish all day, maybe just came back from 0.25% decline. it has been up 11 of the past 14 sessions. it's sitting on a slight gain for the month as