good afternoon and welcome to "power lunch," everybody. alongside brian sullivan, i'm kelly evans. welcome back the port does remain in the midst of a storm the strike is going on a third

day. you have sugar, cocoa, coffee, and key components for ev makers like tesla that company is getting hit on two fronts today the strike as well as tariffs on parts sourced from china, making some sales adjustments as a result. >> drove by the port of newark, new jersey, today. >> on purpose or as part of your drive? >> to get here. >> okay. >> it's so bizarre to see nothing going on at the ports, nada, zip, nothing. >> shoppers are starting to hoard products, having flashbacks to covid. >> a very wise person told me yesterday, no need to go out and bum rush toilet paper. we're going to be. >> that's what i was saying. same with paper towel. electric car charger, ev go,

it's up 60% today. a stock upgrade from jpmorgan chase. the eo will join us later in the hour. >> and hims and hers, it's up. but it does not get the edge it would enjoy. >> something else we've got our collective eye on, trading bots. yep, bots. when we talk about advances in artificial intelligence, we often forget to mention the growth in automated traded today we're going to talk about it obviously we've got a lot to do this hour. start with your macro money. nasdaq, down 0.2%. kind of like yesterday and the day before that. we've got the monthly jobs

number tomorrow morning, but it's also safe to say without editorializing it's possible the market's in the holding pattern ahead of the election, right >> we'll see. >> the real focus should be on the middle east. obviously tensions are high and they're growing hotter, and oil is popping again today, 4.5, on concern that israel could soon strike iranian oil facilities. that's said to be off the table until today because earlier today president biden made some off-the-cuff comments that spooked the market listen. >> would you support israel striking iran's oil facilities, sir? >> we're discussing it i think that would be a little -- >> obviously you've got the chopper in the background and a little hard to hear. biden said this when asked if they would support israel's striking iran's oil supply

he said we're in discussion. i think -- i think -- that would be a little -- end quote it wasn't a direct no. it could certainly spark oil prices i think we could see a $10 barrel a pop easily with a strike. >> you're not going out on too much of a limb here. >> i'm aggregating that from other stuff i read. >> here's the question why is thattet not being reflected in the oil price or is it saying take that $10, discount it by the likelihood that that happens? as i understand it, there are several different kinds of oil facilities there are a couple of different oil production aspects that they have and what kind of strike would it be, and to your strike yesterday, what response should we expect? a modest move. >> we could also just more

viciously enforce the current sanctions. >> there's also that. >> there's also that iranian oil exports tripled. either way, this is moving oil it's moving energy stocks. not moving the market. joining us to kick things off, jason pride at glen meade and cnbc's mike santoli as well. energy, oil and gas, they're moving oil itself moving. doesn't appear yet that there's a macro impetus on the market. >> no, not evident right now, and probably in part that's because of the absolute levels that we're coming off of here. big gains, we've been in 73. so until it imposes itself in terms of getting out of this ban, i don't think it's a macro driver we do have a market othat's

apprehensive october 7th anniversary of the hamas attacks on israel, i think that's on people's minds as well as everything stacked up between here and the election, and we're in the anticipation mode all of that means we're going to wait and see perhaps nervously against that, you have nvidia popping. remember that old story? that's supporting the old market as is the general sense of the fed easing into what should be an earnings upswing, which should create a bit of a buffer ahead of anything we might be worrying about. >> jason, there are energy investors who would say a couple of dollars of crude, we'll take it the energy stocks are benefiting at what point does this turn into a bigger headwind for the economy and the markets? >> i think it depends on what would happen many people aren't in a very

good position to predict only those in the government, making a decision, having an idea of the impact we could have what we do know is this could escalate it's being reflected on the margin and the markets today, but not to a dramatic degree. >> jason, as you look into year end and the shaky start we've had to october, we've had the stockmarket doing worse, but the data doing a little bit better explain that to us we need to recognize this market has been up quite a bit this year on the presumption of this thought process we're in and ongoing soft landing we've now transitioned where the economic data has been coming in

there's reason for opportunity for us to see a little bit of the downside in the market, but not so much it derails this ongoing market return and expansion. as far as where we put our money, we recommend that investors take a hard look at the portfolios, recognize quite often you're going to realize your portfolio is quite concentrated with big names. when you only have a concentrated number of market portfolios, the best thing you can do is take a statement toward diversification. >> yeah, mike, you know, listen. it's tough to talk about politics, but we have to the election is coming up in about a month's time you're down there every day talking to people. i see it firsthand how much is the election, do you think, on the mind of the market, if at all? >> it's absolutely on the mind of the market mostly because there's a recognition n even though they know it's not the

biggest swing factor it's waiting out there with this known catalyst most of the time they want things to improve and get it out of the way, and we can respond to the policy mix. the s&p was up the most it's ever been in a presidential election year. that would suggest, 1, we're not super worried about it two, it's kind of a tie, give or take, no matter how you want to slice it so it's very difficult for the market to decide it wants to lean on. three, we were kind of pricing in a pretty good scenario of a soft landing, so it's not clear that we necessarily are in need of reassurance from one side or the other to hang onto these levels we basically need the economy to confirm what we're doing i think that's why the jobs number is pretty significant in terms of telling us we were correct to be worried the last

two months when we had disappointing payrolls or to say it's okay where we're at now. >> we do need that confirmation. you have the diplomat component that's weak. tomorrow could be kind of a big deal it could tell us whether the fed should be in a continuing series of 25 or 50 or whether that assumption of one cut after another should actually go out the window. >> yes and i don't know, kelly, if truly this one number is going to push the november expectation clearly to one side or the other on a cut i do think the one thing we're wishing for is for the job market and economy to hang in there reasonably well and not force the fed to get more aggressive and get to neutral in a hurry. that's when the economy has kind of run away on the downside and the fed is chasing it. >> right, exactly.

thanks we appreciate i. mike santoli, jason pride. how is the bond market preparing for that >> rick santelli has that. i notice the yields are moving higher today. >> absolutely. they're moving higher today. if you look at the last couple of days, we have what we call a staircase. we're trading them up previous days high yields we started to move things up aggressively we can talk about how the employment index is decreasing a bit. even with the employment drop in the index, we've seen that recently if you look at the two-day mark, it says it all all were above trading in the high yields yesterday. we did good work yet why are we building momentum well, there's a variety of

reasons. the data has been mostly c plus, b minus. rates are moving higher, even though the. owe politics make it safe and asiding. let's look at a chart starting mid-august we're at the highest levels in 1 1/2 months after touched a 14-month low and went back to july you see a lot of false starts. but overall, the way it's aiming higher, we're going to see interest rates and dollars moving up despite fears going on in the middle east back to you. we're just getting started still to come on "power lunch," this are plenty of regular flags. but once you ya take a look, one

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that's what i do. is that love island? lunch. oftentimes we talk about an under-the-radar name it's a company on the smaller side today we're focusing on one with a market cap of over $25 million and trades nearly $40 million a year and a recent addition to the s&p 500, however, it's also driven largely or even soly by passive algorithms here to reveal the name and talk about what it means, herb greenberg with "greenberg on the

street." he's also a cnbc contributor. tell us what's shaking here. >> i'm sure people have never heard of erie indemnity. i said, indemnity, it's an insurance company, i don't want to look at it. no, it's not an insurance company. what does erie indemnity do and chould this stock have gone up almost double in the past two years? look, the only explanation i have about the company's stock performance is its earnings have actually done phenomenally well over the past year, a little over a past year they've just risen for a reason. most people would never understand, and that is this company's primary visit, it's not an insurance company, but it's known as the attorney in af fact, which is like a glorified agent for a group of insurance

companies, and their money is made by a fee, a 25% fee that it makes by -- from charging these companies for doing things like issuing policies, handling claims, and all that this is the important part the b is tied to insurance premiums, and we all know what's happened with insurance premiums they've gone straight up here has gone the reason why it went up. they've tied into the headlines of higher earnings the minute insurance premiums start to level off, this company's growth will slow down. you know, i say live by the, die by the algorithm. >> let me -- maybe an active

manager who knows a bit about insurance would have been hail to uncover, and if there's a pullback, maybe if the algorithms sell, maybe that's a chance for the active manager to scoop it up. >> well, maybe look this company has little to no wall street coverage most of the big inventors. they're pulled in, pulled out. they move around like. that it's not a company again. it's a very regional business and all of its revenue is tied to fees by one kmern there's also one other overh hang there was a red flag a few weeks ago. the other is pnc owns about 10% of the shares. if they ever decide to liquefy some of that, sell some of that,

they have plans to expand further. this is a hidden asset in pnc most people never think about. that is another overhaing to a company like this. i read flag them as stocks to avoid because you would expect them to lag the market, not leave the market >> i don't know. if it weren't 82%, herb, i would be looking to go, gee, everything seems like a decent business modelle i don't know. >> insurance companies are printing money they take your money but don't pay you money. that's a great model snoop as it gross, the growth slows as a result of being tied to that one kmern. the same algorithms that pushed it up are going to push it down. >> if you wanted to make this a

conversation about whether the price hikes and insurance are likely behind us i agree with you well, there's no way we can go up much. the consumer pushback, you know, the regulatory pushback, don't you think we had to have seen an 80% move already >> you started to see it on the commercial side. on the retail side you see it plotting out again, with a company like this, it's tied to one thing again, the people see the name the s&p 500, it's an insurance company. no, it's not it's a company that basically is a glorified third party administrator. that's what they are that's what they do. there are a lot of little companies like this out there. i've been kind of looking for them. >> erie is my new tell on fed rate cuts. if this stock stops working, not

only will herb be rate, inflation's finally going to ebb. what were you going to say >> i was making a tongue-in-cheek comment. but if we redo our 2020 election road trip, which i hope we do, erie, pennsylvania, that was a stop in 2020 if woe redo it, herb, i'm going back to erie -- great hot dog places, by the way -- and maybe i'll make a stop at indemnity and ask, what do you think about my man herb greenberg? >> there's some controversy about the deeper structure even -- that getting into a murky arcane area not just about the coun dcounty but insurance.

>> on the other hand, aren't a lot of these insurance and adjacent insurance companies always being sued because people are never happy with whatever they might get >> you're right. >> it's called the erie mutual exchange, it's not making it anymore. if you look at the statutory records, it's not making any money. so erie indemnity is making a ton of money off a -- a group of min. if there's any extra money, it should be going back to the insurance policy owners. i think it's actually -- the more i get, the more interesting i found it

you can go to the rapthole and try to untangle it. >> herb, thanks for joining us good to see you today. >> always a pleasure. >> always good seeing herb. >> i agree every day with a herb orr herb. >> beg banks coming out next week jpmorgan shares beginning strong we're going to drill down on that market navigator next.

welcome back to "power lunch. the dow is down 246 points, the s&p by a third of 1% the nasdaq down a quarter percent. jpmorgan kicks off big earnings next week. the banking giant has actually been showing poor, absolute, and relevant readings. our next expert tells us why we're going through that shift carter, it's great to see you. what's catching your attention about jpmorgan >> obviously this is the big one.

we've got earnings coming next week big banks. look, on all the factors that have ever been marketed, relative strength is important what we know is jpmorgan acts poorly as the old-time expression goes just as you mention poor relative performance both to its peers in the btx index and to the market over the past three, four, five, six months >> if you were looking to make a trade on this name, what would you do exactly >> look, we're at 98% of capitals only. if one is long and simple, i would take some measures i would buy a book, sell some calls. i would reduce some exposure going into the core of the report it's worth noting, kelly, the last three-quarters, jpmorgan

has reported earnings that beat earnings consensus on the stripe, and the response went down here you see ooh a table very straightforward. it's columns and rows that tell the tail one month, three months, six months jpmorgan is under performing, the index of which is its biggest constituents both the banks are underperforming the gdp. we have an uptrend what's clear is it's under pressure my hunch is this is going to break trend here, would take measures on what is long >> do the banks at large catch your attention you've been mentioning they're underperforming. did you look at which might be thing soiest, or might these comments apply to the sector broadly? >> well, others have been

soggier. it's a great word, of course, which is wells fargo, city now, some of the embezzled banks have been stronger, goldman sachs, morgan stanley. you look at other banks and they're straight up and steep and extended it's a very bifurcated group we shall see jpmorgan, i would say buyer beware. >> a note of caution for the earnings season. carter, for now, thanks. wee prback /* br brian, back over to you. >> the port strike is entering its third day and products like commodities are getting rerouted why you'd could see a spike in key commodities coming up. also it's not car deliveries also being delayed

we'll get an analyst's take on what this could mean for tesla. speaking of charging an electric car, the ceo of evgo, that stop ripping right now. they've got a billion dollar taxpayer loan. we're going to talk about that and more coming up >> announcer: market navigator is sponsored by charles schwab trade brilliantly. tax smart investing today, helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors

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lunch. they're bertha coombs and here is your cnbc news update at this hour a grim milestone and recovery efforts following hurricane helene as the death toll rises to at least 202 people, according to an nbc news tally more than half of those deaths in north carolina. authorities say hundreds of people are still unaccounted for. toyota is reportedly delayed by several months. the start of electrical vehicle production at its kentucky factory.

the change is due to design change and adoption. the car is planning a new five to seven models over the next two years. smart ring maker has knew features that include battery life aura unveils it. samsung is launching its own ring this summer and persisten >> i know a couple of ours have it to be fair, i gottet right whun covid hit so the ring -- it's not a commercial for the ring, but it tells you when your body

temperature goes up. the nba used these at the beginning of their season when covid hit. i bought one bought one for my dad too. i don't like my sleep stats. at least on "worldwide exchange," i didn't like my sleep stats. >> day three of the port strike leading to lines of shifts on every major coast. disrupting supplies for every major industry including cars. it's not just cars but components of cars and tesla vehicles many f of those stuck in the ship now, tesla specifically -- that's not the only issue facing the company. it's discontinuing sales of its cheaper model three in the u.s one reason, chinese made battery

parts could be driving up costs. we bring in craig. sort of a dealer's choice, craig. listen, the port strike may not go on for very long, be but if it does go on for weeks or longer, what would that mean for tesla? >> every single day southbound a week of supply chain disruption for most of the companies involved i would expect that to translate directly into what this means for tesla right now. the only positive here is that tesla's delivery tends to be back-end loaded in the quarter so if this issomething that's resolved in another week or so, they probably will have enough time to get some of these components in there and come in close to their delivery's target demand is weak, which is why they've been missing but let's just say they'll come close to their aspirations and for the benefit of the industry.

>> is it just them though? because when i drive by newark or baltimore, all the vws are coming off baltimore all the vws are coming off charleston, north carolina newark is heavily, heavily nissan is it just tesla, or is it all automakers >> i would expect this to be the whole industry and not just the auto industry, but, you know, everything from consumer products to, you know, medical equipment and pharmaceuticals, right? but, you know, i cover tesla, which is a piece of the automotive industry, particularly the ev side i watch that closely i think this is going to be sort of a wrinkle in the story, you know it's not that material yet for tesla. i think it probably is for some of these other industries. you know, tesla has done a very, very good job managing the supply chain globally. it's something that's differentiated them. but the reality is, you know,

they have been falling short of deliveries, even this past month, and this creates an environment where the myths or the magnitude of any myths is probably a wider delta given its headwind and, you know, having time to fix it is a good thing, but the longer this goes on, the greater the pressure, and tesla's, you know -- tesla's used to pressure they don't need tesla right now. they need time to work on it it's way too late. >> it's been five years. you said discontinuing the car probably helps them. craig, for now, thanks we appreciate your time. craig irwin. sticking with the ev space, shares of evgo are soaring 60% after it receive d it

joining us is badar khan welcome, and why did you qualify for this assistance? >> thank you for having me we've been in business for a long time. we've been building infrastructure over the last decade infrastructure we're building today is high quality, fast, and has chargers, which means you can charge your car. for all of those reasons, we were well placed. >> your excellent pr people have probably told you -- as an ev buyer myself, i've been a little more critical of the industry. if you joined today and i'm looking at a note here that basically says there's a possibility that sort of this semi-negative macro sentiment

around evs is masking your own strong operational performance, do you think that the sentiment around evs, which has come down off the initial highs is impacting your equity? >> brian, we've had six consecutive quarters of triple-digit year-over-year growth through throughput. i think some of the overall sentiment has unfortunately hit it we're the owner/operator of our equipment as opposed to selling the equipment. so we're generating revenue every time someone is charging their electric vehicle, and, of course, there are more electric vehicles on the roads. >> here's what's amazing about the more evs on the road including the one i myself purchased which is, they're big. we're electrifying trucks and

suvs do you think we'll benefit more because we're super sizing cars which will require more charging and more charging infrastructure >> i think that's exactly right, brian. there are two things going on. they are becoming heavier and less efficient, and so, therein requiring more assiassistance we're looking at more affordable electric vehicle models rolling out. what that will do is help from the early adepartmenters to the mass market. i think we've seen that in china and new york and other states. >> what are you doing with funds? we just showed a map of your location >> we've got about 3,4 00 -- jut

over 3,400 charging stations across the united states if we're successful, that will give us an ability to add year >> that said, why should this money sort of be better spent on aere they might see bigger roi in the long run to the point this is a $4 stock before this announcement >> we serve every -- we serve 70 battery lek vick vehicle across the united states. that's the core part of who we've been that's a key part of whoo why the u.s. government has decided to award the funding to us. >> how do we fill out the gaps

in the rj chaing structure i don't know where you are physically located we're in new jersey. everybody's got an ev. here at cnbc, we have chargers select austin, madison, wisconsin. as i drive back and forth numerous times every year, once you get to pennsylvania and go west to ohio and indiana, it's very grim. what has to come first does the charging infrastructure have to come first or does the rollout and build-out and more sales of cars justify the build-out of more chargers, sort of the chicken and the egg of charging, if you will? >> yeah, look. it's a little bit of both. i'll tell you, the fattest growing states in our network today are texas, florida, michigan, arizona. the charging infrastructure will build out through the loan will span 30 states

we're not just talking about the coasts we're talking about states across the united states >> badar khan. i'm sure you have no idea it's up 60% i wanted to let you know in case you weren't aware. congratulations on the loan and the stock move today take care. >> thanks. coming up, air, land, and the gop, musk has reached outer orbit with spacex. we're learning more about his involvement with politics. that detail next. >> announcer: crypto watch is sponsored by grayscale in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. so, the question is - cyber attack. as cyber criminals expand their toolkit, we must expand as well.

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all right. welcome back while elon musk deals with the trickle-down impact of tariffs on his business, it looks like he's working behind the scenes to gain influence over public policy, gaining millions emily wilkins has more.

>> hey, brian, elon musk created a political action committee earlier this year that has give about tens of millions to trump, but in the last month, musk's path also started giving to the will millions so far 15 house races across the country, and that's according to cnbc's review of public filings. their campaign arm is lagging behind their democratic counterparts in fund-raising the house, of course, is a toss-up. either has a shot of winning and the funding is going to make a difference here. public filing shows we've got the winkle boss twins and others who have donated to the super pac, but it's not clear exactly how much of musk's own money has gone into the path, although, he has posted he plans to make some donations. a spokesperson for the american pac defined the comment further, but we've got new reports out

from "the wall street journal" and reuters that musk poured tens of millions into the republican campaign since 2022 that includes donations to the campaign and 50 million tied doh dark money groups that do not have to disclose donors but we will expect to get more claire toe on which races the pac is supporting next months when the next round of filings are due. >> i would imagine, emily, without getting into it, if you remember president trump, talking about if we get flooded with cheap chinese made electric cars it will be a blood bath for the u.s. economy, that word got taken in different directions. i don't want to go there, but if you're yelon musk, your biggest existential threat is all these chinese companies coming in and trying to sell $20, $25,000

electric cars to the masses. i imagine if you can spend to block that, that wouldn't be the dumbest thing to do. >> evs are definitely going to be on the table next congress regardless of which party holds it both democrats and republicans have concerns, but republicans have said they'll refuse regulations. that is typically better for businesses and you're seeing musk respond to that or that's what we have heard from him in interviews around this topic >> thank you we areatppcie your time. emily wilkins in washington. coming up, the other key movers of the day in three-stock lunch.

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welcome to ameriprise. i'm sam morrison. my brother max recommended you. so, my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcía's, love working with you. because the advice we give is personalized, -hey, john reese, jr. -how's your father doing? to help reach your goals with confidence. my sister's told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. welcome back it's time now for our three-stock lunch. we'll look at some of the big movers today here with us, president at jewel financial. we're going to start with nvidia why not go to the heart of this, which is up 3% after jen-hsun

huang told overtime yesterday, it's next gen blackwell chip demand is, quote, insane what would you do with the stock here >> yeah, kelly, thanks for the setup. it's really great to be back with you we're going to take the unpopular opinion here and we're going to put a sell on nvidia here it's been a sell for us for some time in fact, the first time it hit around the $126 level and was trading 35 times forward, we sort of decided to sell the name now it's trading a little less rich, 30 times forward earnings, with those earnings set to grow at 42%, which obviously they have traditionally beat and it made it look extremely undervalued. but we're just not seeing that at this juncture, and nvidia had this tradition of just surprising i mean, blowing away to the upside, and i'm a little suspect of sort of the cheerleading that we seem to be getting. the stock is up on the news today. it's too rich for me

we're in the camp that we're looking for names that are really going to be implementing the chips and using ai to improve their bottom line. so not for us here it's a sell. >> i peeked at the notes so i know the stock you're not getting online with also is levi strauss. how come >> yeah, brian, this is a structural issue with us here. we think that the cut in the full year sales could be the beginning. they're trying to turn things around they're not richly valued. 14 times forward and set to grow 14%, but they have a debt issue and a sell of dockers would be good to shore up the balance sheet. i like the renewed focus on the yoga brand, but there's no rush here once we start to see a turnaround, it will show up in the numbers. we would be okay to buy it at that point not here no rush for us >> what about hims and hers after losing the edge from their weight loss drugs? >> let's take a flier. hims is the one we would say is a speculative buy.

little to no debt, $200 million in cash. fairly values, 22 times forward, 80% growth this is one that we'll take a flier on >> you're surprising me. great to have you. thanks for your time >> quite the mix of stocks levi strauss, hims and hers. >> and a g-7 statement on israel as well. saying they support their actions to defend themselves keep an eye on that. >> thank you for watching "power lunch," everybody. >> thank you for being here. "closing bell" starts right now. welcome to "closing bell." i'm scott wapner live from post nine at the new york stock exchange we begin with the outlook for stocks that jobs report looming amid a pickup in volatility this week we'll ask our experts what it means for your money let's check the scorecard with 60 minutes to go in regulation, pretty much how the picture has been all day it does bolster the case for a soft landing, but it could also mean potential for smaller rate cuts more on that in a minute oil hi