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and good afternoon, everybody. welcome to "power lunch." along side morgan brennan, i'm tyler mathisen. glad you could join us. stocks are higher right now, led by the nasdaq. but concerns continue for big tech. today microsoft, as you see right there, downgraded by oppenheimer, not seeming to affect the stock one bit at all. it's up $3. the worry, though, is that expectations, morgan, are too high, which is what we heard yesterday when apple was downgraded maybe a little bit of a tilt away from the fever pitch at which tech stocks have been performing this year. >> yeah. this was interesting, too, because basically said consensus eps too high. open ai said to lose $6 billion this year and that's going to flow there to microsoft given its large stake as well and have an impact there, basically that ais will continue to likely disappoint as we are not seeing companies pick up and adopt -- >> monetize? make money out of this? >> which by the way has been a focus for investors for quite a number of months now. after really strong run-up with megacap techs so far this year,

we are and we have been talking about it every day, this rotation out of megacap tech as you're starting to see that earnings growth deteriorate and starting to see it get picked up by the other 493 stocks. >> by the other 493, industrials, financials among them to. chinese markets reopening sharply lower after a week-long holiday. they soared on stimulus hopes and investors are getting a little more cautious. >> i suppose when you close the market for a week, then anxiety can build up and maybe this is the follow through of that. of course, there was a lot of enthusiasm last week when the sort of big guns china threw the kitchen sink at its economic issues and maybe after a week's rest people have come back and said, maybe not quite so fast. >> you also had some comments from some of the top officials there where they basically said, listen, we're going to tech steps to support growth but stopped short of laying out specifically a fiscal stimulus package. we had the monetary stimulus

begin to kick in. folks looking for the so-called bazooka of fiscal stimulus. >> the third thing we're watching at this hour is hurricane milton expected to make landfall in florida sometime tomorrow. concerns on federal aid to north carolina after helene was slow and insufficient and maybe inefficiency dispersed. the proposed track taking dead aim on the tampa/st. pete hor. the last thing the southeast needs right now is more drenching. that seems like what the southeast is in for. >> yeah. your heart goes out to the folks in tampa and the southeast and other parts of florida that already dealt with a massive economically devastating hurricane. just less than two weeks ago. it is interesting to see the reaction to this in the markets, though, because insurers really sold off in anticipation of this yesterday you're actually seeing names like all state progressive move higher today. orange juice futures traded

lower yesterday. those are bouncing back, too, because it does seem like investors are grappling with just how strong this storm is going to be. either way, if you're on the ground, it's going to be a scary thing these next couple of days. >> absolutely. let's start with big tech and concerns about expectations for profit. apple, apple and amazon bouncing back after falling yesterday on downgrades. microsoft higher today as well. nvidia a big driver of the positive sentiment, gaining for a second-straight day as it hosts an ai event in dc. foxconn telling asia he thinks the ai boon still has time to go. so what is the real state of technology heading into earnings season? ellen is chief market strategist and portfolio manager at fl putnam investment management. steve kovach is our tech reporter. steve, let me let you kick it off here and sum up where technology seems to fit right now. >> yeah. it's really interesting you

nailed with it the two downgrades we got today from microsoft, apple from yesterday. they're both questioning this ai monetization, perhaps expectations are too high. let me talk about the microsoft side, that's the one we got today. this one is super interesting because they're basically saying, you know the cap x problem we have been talking about the last two or three quarters with these hyperscalers spending enormous amounts of money. we're seeing microsoft say we're spending $20 billion in cap x in each quarter in their fiscal year. that's crazy. all going towards the ai infrastructure that we talked about. half will be spent on the chips. half on the land and the buildings and things like that. and basically saying, you know, they're not selling anything to make up for all this cap x that they're spending. at the same time, i'll quote what ceo has been saying on these earnings calls and comments about this is that the demand is there. the demand for this ai compute, the demand for companies who

want to start ai startups, for example, not just open ai, it's facebook, it's a bunch of other companies operating there. so, the question that they're going to have to answer again and again and again is when do these investments actually start to pay off. you mentioned open ai, losing $5 billion likely this quarter. i don't know how that actually flows to microsoft because so much of investment is -- in the. >> in the form of cloud credit. >> it's not like microsoft wrote a huge check necessarily. we'll see when that all gets shaken out. one day we'll get an s1 from openai and really see it. then on the apple front, it's also a very similar air story. when will this pay off for apple? we're expecting apple intelligent to finally launch on the iphone, our first taste of what the normal consumer thinks. but jeffrey's downgrade yesterday said it will take a couple more years than the lot of the street is already thinking, simply because the hardware is not capable enough to do the coolest and best ai

features that people really want to use. it's going to take a few more years for apple to actually get the hardware out there that's capable of doing that. the big question, i can only imagine what the analyst call will sound like on the apple call. >> i'm not sure what consumers really want ai to do for them. i don't know. >> i don't either. >> i don't know enough to know. >> that's the point, exactly. i stood out on iphone 16 launch day, why are you here? why are you here? why are you here? no one said ai, camera, screen, battery. apple really has to -- >> stick around, steve as we bring in ellen hayes. ellen, i know that you are overweight equities. but i guess the real question is what about those seven equities that have made up so much of the gains so far this year or over the past year and a half. where are you on the magnificent seven? you love them? you loathe them? >> we love some of them and

loathe some others. thank you for the question, tyler. the magnificent zen, there's no question since '22 they really acted in concert and mostly '23 when they acted in concert, this year we have seen a lot of divergence, nvidia up 200% this year and of course, ores, like tesla and even apple is struggling a little bit more. so as we look at them, i think you need to keep a couple things in mind, number one, where are you starting off valuations? and how fast are the earnings going to grow and how much cushion is there in the valuation if the earnings are a little shy. i know you talked a little bit about amazon earlier. and how they might slow down a little bit. and even if they do, it will go from 25% growth to 20. so that's not so bad. similarly with micro soft, the one thing i would say there, is that they're getting people to pay for co-pilot gethub right now. now, are they going to have to push out a little bit on some of the adoption of their regular co-pilot? maybe. but you're still getting solid

double digit earnings growth for pretty reasonable multiple. i think you need to be careful. then when it comes to apple, that you brought up, we have been underweight apple for a lot of the reasons you cite, not just because ai might take longer to be adopted but just because the growth isn't there. the growth of apple is half or less in terms of earnings than these other companies are and yet paying nearly the same multiple. over weight some andover weight others. >> what do you think of nvidia we got these foxconn ceo comments that basically said this ai boon still has some time to go and the demand for nvidia's chips, blackwell chips, is much better than we thought according to that chief executive. comes on the heels of nvidia ceo jensen wong just last week on cnbc's overtime talking about the demand being, quote unquote, insane. >> at some point that's going to slow down. and when it does, it will be pretty ugly. but for right now, i think the demand is insane.

very strong demand. look at the earnings estimates for the last several years they just keep going up. that's another one where you're actually paying a reasonable multiple for the earnings growth that is going to happen. and they are in the poll position as we all know strategically. at some point that will slow down and will be more competition and be more careful what we're paying for it. we're lying in nvidia. >> we got bullish comments from super micro yesterday too. we talk about this ai trade, long in the tooth, still about picks and shovels. should we be focussing more on the application layer. when do we start to see that realization as well. >> that's the huge question, right? and for apple it's celling phones. for microsoft, i'll bounce on what ellen said about co-pilot. that's a version of their ai assistant for computer engineers and computer coders. immensely popular. she's totally right about that. the enterprise version of co-pilot the stuff that they sell to people and businesses at work to go along with your work

and outlook and teams. that's not doing as well and that's where the bigger opportunity is. there's over 400 million people everyday using microsoft's 365 suite of applications. tack on another $30 peruser per month times 400 million, you can see what the opportunity is there for them. and we just have no idea how well it's selling. we had some mushy opaque stats from them, but it's unclear and it doesn't feel like or seem like it's selling in a significant way, at least not the way they've been presenting it and saying this is going to change the way we work and so forth. that hasn't materialized yet. so when you talk about the software level, that's where it plays with microsoft, talk about the hardware level, the ai features have to be good enough on these apple devices to drive more sales. and it doesn't seem like that's happening yet. we'll have to wait until it actually launches to see if that ignites some more demand. >> ellen, let me give you a couple second to talk about a stock i know you like and that is netflix. tell us why.

>> so we always go back to earnings estimate, netflix earnings estimates have been going up all year. strong double digit earnings growth. if you look at the last quarter, they beat and raised again. their introducing this ad tier, will be a cannibalizing as some of their kwlients are going to go to that instead a lower per month fee. but they're still dominant in the content space and the valuation is very reasonable for what you're getting. i don't think that the pull forward is necessarily going to be as big as some of the analysts are saying. >> ellen, thanks for much for being with us. we appreciate it. steve, stay with us. >> all right. shares of meta have been an ai winner, up 66% this year and trading at record highs. now today the company announcing tools for business. julia boorstin has the details for us. hi, julia. >> hey, morgan. today meta is unveiling new video generative ai tools for advertisers after launching image and text generation earlier this year. now, these new tools including

one that can expand and adjust video clips. and now there's another tool that advertisers can use to animate images. what that means they can turn a static image into video using meta's new tools. now meta says that it's following consumers. now, 60% of time spent on both facebook and instagram is video. so, responding to that, they're introducing a new video tab to help people better find that content. they also say they're responding to the demands of advertisers with these new ai tools. meta announcing that more than 1 million advertisers and 15 million ads were created with its generative ai tool in the past month. also saying that ad campaigns made with its generative ai features resulted in a 7.6% higher conversion rate by customers. meta shares up 24% since the company reported most recent earnings at the end of july. those better than expected results really showed the investments that meta has made

in ai, paying off for advertisers. now, just this past friday, meta debuts a preview of what it's calling movie gen, new ai models to create and edit videos. no release dates yet for those tools. but today's news shows how it's long-term investment in ai bets can near-term help its ad business which, of course, tyler, is its bread and butter. >> julia, we want to pivot to another company and another topic, that company is roblox. it inflated key user metrics. ped files using the platform to target children. roblox rejects the claims in the report and says it is a safe and secure platform. child safety online also at the center of a new lawsuit filed by the new york state's attorneys general against tiktok. give us the details on both of these cases, julia. >> well, just digging

specifically into that tiktok news, tyler, tiktok's effects on kid's mental health is under attack. bipartisan group of more than a dozen states attorneys general is filing lawsuits against tiktok. washington, d.c. attorney general brian joined by new york, california, kentucky, new jersey and others accusing tiktok by claiming that the app is safe for children despite, quote, intentionally trying to addict young people. the suit alledging that tiktok puts teens and children at risk of depression, anxiety, sleep loss and body dismorphea. calling tiktok digital nicotine. operating a unlicensed use of coins the users can buy to send gifts to streamers is an unlicensed virtual currency from which tiktok earns up to 50% on each transaction. now tiktok responding that it strongly disagrees with these

claims m which it believes to be inaccurate and misleading. tiktok saying, quote, we provide robust safeguards, proactively remove suspended underage users and have voluntarily launched safety features such as default screentime limits, family pairing and privacy by default for minors under 16. tiktok saying they tried to work with the attorneys general for over two years. they're disappointed that the ags have taken this step. but tyler and morgan, this is all part of growing concern about the impact of tiktok and roblox the impact on kids and teens in particular. >> key topics. steve, i'm going to bring you into this conversation. my daughter was on roblox a couple months ago and somebody reached out to her and we had to shut it down. this is not an uncommon story when you talk to parents. >> i was talking to one of our executive producers and she said the same thing. her daughter was in the room. someone weird came in. that is a lot of what's in this

report when they're talking about these child safety issues. it's a little bit different than the addictiveness. instead they're saying roblox isn't doing enough to keep young people out of more adult experiences, for example, they said they created an account posing as a 9-year-old on roblox and able to get into some more adult themed, sexual themed experiences. in theory, roblox is supposed to age gate those and you have to be 17 or older in order to do that. at the same time, they also said they were able to find a bunch of user names with names like referencing jeffrey epstein and other famous pedophile like that. so that was another alarming thing that they laid out here. and here h tl are these automated tools. they're using artificial intelligence and moderators and all this stuff in order to combat this, but clearly at least it's not enough and by the way, this is not the first report of roblox and these issues. you experienced it personally in

your own family, but it's been going on for many years now. and it's a huge problem when you have at least, according to roblox, 79 million people logging on everyday. how do you monitor all that. something facebook and all these other social networks grapple with as well. >> it's a big topic and shares of roblox are down 2.5% on this report. julia, why is tiktok the focus of the ags and not other social media companies and i ask that knowing that tiktok, as it exists in the u.s., is not how it exists in china. >> yes. tiktok is an entirely different thing here in the u.s. and i have to say there have been various other efforts by state ags to tamp down on the negative impact of platforms including snap. so, this is not -- this is just a particularly focussed on tiktok and its impacts. we also have to remember that tiktok is potentially going to be under attack by sifios and

this lawsuit whether tiktok should operate in the u.s. as it does today because it is owned by a chinese company bytedance. i think the thing about tiktok really at the center o f this concern is the addictiveness of the algorithm. and the algorithm is at the center of this question of the chinese ownership. would the chinese parent company bytedance sell tiktok and give access to this magic algorithm. there's something about the way that tiktok continues to show you videos and shows you video after video that sucks you in, that's, i think, what the scepter of the concern is here. and this idea that unlike say instagram where you're selecting topics to follow, you're selecting people to follow, tiktok is so much just about that feed and what the algorithm decides to show you next. and that really seems to be at the center of the concerns about mental health, especially on young people who may fall prey to it. >> you took a nibble there at my

question, and that is what distinguishes the tiktok algorithm from, for example, the algorithm that leads you down the rabbit hole of reels and stuff on instagram. what's different? >> well, look, we can't see under the hood and see how these algorithms work. but we know these algorithms are designed to keep you engaged. now, instagram is a platform, for instance, is designed for people to follow people that they know and connect with people they know and also follow people they don't know. tiktok is more about consuming content. obviously instagram has looked to borrow a page from tiktok and has created this reels format, which is very similar to tiktok. this short form video format, but tiktok is really about the idea that they're going to feed you videos that maybe you didn't realize you wanted to see. you have memes that go viral. and next thing you know your teen has spent a lot of time, maybe more than they expected or understand that they're spending, watching video after video after video.

there's less of an opportunity to say, hey, maybe i had enough here. >> all right. big conversation. we covered a lot of ground. thank you both. julia boorstin and steve kovach. >> as we head to break, let's check on shares of another social media firm, donald trump's truth social, on track for a four-day win streak. it's up around 18% today. well, now about 16%. it's best day since july 15th, however, it's still way off its 2024 highs. meanwhile, according to reporting from cnbc.com, that company's offices are in the path of hurricane milton. the entire state of florida bracing for what will be an historic and highly destructive storm. we have more on that when "power lunch" returns.

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dana? >> reporter: hey, tyler. we're here at naples beach. as you can see behind me this beach is closed, but it is full of people. more people than we saw yesterday. many coming out, several surfers in the water trying to take advantage of these unusually high waves that you normally don't get on the west side of the peninsula. i have spoke on the a few people, some live here, some don't. i asked, are you planning to evacuate? some say they live in high enough elevations. some said maybe. the mayor started the mandatory evacuation orders for the coast around 6:00 a.m. this morning. a lot of people have not left yet, but there is still time. when i asked her about what's just happening behind us here, she said this is what they do here in florida. they expect this. but she hopes that people are heeding the warnings. we heard from several people who are preparing, whether that's getting supplies or packing up their vehicles so they can evacuate when the time comes.

the main concern here in naples is going to be the storm surge, which could be several feet high. we've seen several people inside garages, bringing their vehicles here in local city garages to try to move to higher elevations. we have seen some local flooding just from the storm system that is currently in the area. this is not even milton yet, but this system will move out and then milton will start to come in and we'll see -- feel the impacts from the gusty winds to more rain in this area starting tomorrow. it's a major concern, you know this storm. even though naples is outside of the direct line of impact, we could still see some major impacts from that storm. again, it is still life threatening. tyler, morguen? >> dana, thank you. stay safe. hurricane milton coming at a time when the government is still trying to provide relief following hurricane helene. let's get to emily wilkins now for a look at the federal government's response. emily? >> hey, morgan. a key federal program to help small businesses recover from

disasters is looking at its own morning, with funding expected to soon run out. this is the small business administration. they have a disaster assistance program and it really provides critical aid to business owners, to nonprofits, homeowners, even some renters. but unlike fema, the they did not get an additional funding boost in the stopgap bill by congress passed just before l leaving town in september. congress allocated 20 billion to fema. as of yesterday that agency, fema, allocated 210 million, but the sba on the other hand, is set to run out of funding in a matter of weeks. the agency estimates they have about 100 million remaining. and they're asking congress for 1.6 billion for their disaster relief program. even president biden has warned congressional leaders that the situation was urgent in a letter saying that, quote, it is critical that congress ensures that no critical disaster programs, such as the sba

disaster loan program, run out of funding during the congressional recess period. speaker mike johnson has said he does expect congress to pass that additional funding once lawmakers return on november 12th, but he does not expect them to meet before then and he has noted there's been no specific funding request from the white house at this time. johnson will be in north carolina tomorrow to visit areas affected by the flooding. biden meanwhile, is postponing a trip to europe as milton gathers momentum off the coast of florida. morgan, of course, we'll be watching very closely as to not just what the damage is, but what that is going to mean for how congress needs to move. guys? >> emily, thank you very much. i'll pick it up. still to come, these back-to-back massive hurricanes likely to have long-term effects on. the market navigator when we return. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought

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welcome back to "power lunch." we have some news now on the ai chip maker trying to compete be nvidia. let's get to kate rooney now for more. hi; kate. >> we're getting a report that cerebras, the nvidia competitor, was set to go public in the upcoming weeks is likely to delay its ipo.

again, according to reuters they cite people familiar with the matter here. we have reached out to cerebras and have not heard back. as i mentioned, this is an industry leader in chip making, one of the lucrative ai chip makers out in the market. it was really seen as a bell weather for the ipo market. a lot of excitement around this name going public. they say here in this report that it has to do with review, the committee on foreign investment in the united states, national security concerns or possible national security concerns and they're looking into the investment from g42, a subsidiary of one of the uaes sovereign wealth funds. and this appears to be the hang-up here. they said in this report, reuters does say here that it doesn't mean the ipo is necessarily completely called off but does indicate in this report that the road show will be postponed. we reached out to ce-rebras and

g42 and bring you any update in the the latest in a delayed ipo. >> welcome back to "power lunch." a quick check on the markets. industrials up by a fifth of a percent or 82 points. s&p 500. the 57.38, up three quarters of a percent and nasdaq up more than 1.10% at 18.122. crude oil prices are falling as the recent rally spurred by heightened geopolitical risk is taking a pause. our guest today says it could be a good time to use options to trade in crude. joining us now is scott nations, president of nations index. scott, what are you trying to do here? how are you playing crude by using options? what's the trade? >> that's right, tyler. i'm bearish crude oil and the way to play this is to use options on the crude oil etf. so with uso at 75.5, i'm buying the october 25 expiration. i'm going to buy a put spread by the 65/72 half put spread i can

buy that for about $1.28. breaking that down a little bit, we're buying the strike put and that gives us our bearish exposure. we don't expect it to go to 0, so we'll sell the 65 strike put to reduce the cost of the entire trade by quite a bit. when ever we buy a put spread, we're defining our risk. and in this case, we're defining that risk to the $1.28 that we paid for the spread. and we certainly don't want to just run in there and short crude oil because we know what can happen when traders have to look at a map to figure out where the news is coming from. but while we're risking a 1.28 potential profit is $6.22 per contract, tyler the thesis here is that crude oil will fall back to the mid 60s where it spent much of september. and i am bearish because there's relatively good geopolitical news right now as you alluded to. president biden is urging israel

to not hit iranian oil infrastructure or assets. and it seems like israel has decided that they're not going to do that. if they attack, they're going to strike military and intelligence targets. while that's horrible news, it's not as horrible for crude oil. also, some good news, hezbollah now seems to support a cease-fire in that part of the middle east. so some of the tensions that had been resolving around crude oil the middle east are easing and we're starting to see, as you point out, crude oil fall because of that. >> scott, i want to clarify something on one of the our graphics. the cost here was 1.28, not $128. and the maximum profit was $6.22, not $622. correct? >> well, it's a 1.28, but since every contract is for 100 shares of the etf, the total risk, total risk would be $128 per

contract total potential profit would be $622 per contract. >> okay. good. glad we cleared that up because i was a little lost because you were talking about 1.28 and 6.22. there's a little discrepancy there. scott nations, thank you very much. morgan, back to you. still to come, who would have made this bet earlier today the jet's firing their head coach. major shift for the struggling franchise. but now days when it comes to a move like this, there is a lot more on the line for fans than just bragging rights. sports betting continues to take the industry by storm and there is big money in play. after the break, we'll speak to the ceo of fanduel about the state of the industry. "power lunch" will be right back. ♪

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hezbollah said it would be open to negotiating a cease-fire. the military also said a fourth division had begun operating in lebanon's southwest on monday part of its ground operation. colorado supreme court refused to hear the case against a christian baker who declined to bake a cake for a transgender woman. justices dismissed it on procedural ground and did not weigh in on free speech issues. the case, which drew national attention, is among several in the state pitting lgbtq rights against the first amendment. and new bill in the house of representatives would award the 1980 miracle on ice olympic hockey team with congressional gold medals. the team defeated the heavily favored soviet union in lake pl placid, for a big win in the midst of the cold war. february 22, 2025, marks the 45th anniversary of the upset. morgan, back to you. >> thank you. let's get a check now on the sell-off in china. stocks getting hammered upon reopening after a week long

break. concerns the stimulus will disappoint. but remember those stocks in u.s.-listed names with china exposure, still up huge over the past month. caterpillar is down 2% today but up 18% in the month. casinos with exposure to china getting hit hard today. mgm, on your screen, all down more than 2%. sticking with casinos, let's get out to las vegas now. or contessa brewer is at the global gaming expo joined by the ceo of fanduel. contessa? >> morgan, thank you for that. with me amy howe, whose -- it's just been a whirlwind. came off of investor day with a big new announcement about the u.s. total addressable market. you said it was 1.7 times the previous estimate, $70 billion in north america that includes ontario. three super states remain out of fanduel's reach. california, texas and florida where it's mo nopized by hardrock. how do you get those states in

order to reach that tam? >> thank you for having me. i love being here, especially in vegas. we're heading into q4 with phenomenal momentum. as you said, we're looking at a runway of a $70 billion potential market. but you don't get there without the big states. right? that assumes you have roughly 80% of the u.s. that can bet legally in sports betting and 25 on igaming. you've got to find two of the big three states to get there. listen, we learn a lot -- >> but you failed previously. you tried in california. >> we learned a lot. we really did. we learned a lot coming out of the november '22 ballot initiative. and we have been -- i feel very good about where we are with the tribes, where we have been very clear publicly that we will work and through the tribes and it will be up to them on when and how sports betting is legalized in the state of california. hard to put a date on that but we feel good about those relationships right now. >> fanduel remains the goliath in the sports betting market and

igaming, number one in terms of market share operator. if you're goliath, there are definitely operators who consider themselves david and think they can take you down. i mean, fanatics has a massive customer base. penn's espn bet is on the market, fully launched now and has the brand power of major media. rush street interact i have is the little engine that could. its stock is up way over 100% year to date. when i asked the ceo last night, i don't need all that market share. i just need to make money. how do you keep the edge? >> well, we do both well. listen, we've had a first mover advantage in large part because of our product. and a lot of that we talk about the capital markets day. we were the first to have parlays and same day parlays in market but we're continuing to draw play. there's a great product that we have that's in beta right now called your way. and this effectively gives customers choice and flexibility.

the books used to pre-determine what the betting markets are. so i might offer a market for derek henry to rush for 55 dwr yards, but you think he's going to rush 77 yards. you could determine that. >> you're coming out with a whole new suite of product that gives people like me who find the whole thing still overwhelming in terms of choice, more choice. >> that's exactly right. and we think it's going to appeal to our early adopters who might have been come over from their favorite bookie. but also recreational users. if we can make it simple and intuitive, then this is a potential game changer. >> morgan, you want to jump in here? >> yes, thank you, contessa. amy, greet have you on the show. a former jacksonville jaguar employee suing your company $250 million from prison, after he blew it on fantasy sports and now argues that fan duel should have known he had a problem and not targeted him with vip

treatment. it raises two questions. is there new scrutiny from the company on these vip programs? and is there also potential for more of these types of lawsuits? >> listen, i can't comment on pending litigation right now, but what i can say, without question, one of the most important things we do as a regulated online operator is protect our customers, make sure we can identify any nefarious behavior, fraudulent practices, but also there's a responsibility that we and the industry have around responsible gaming, right? so, of course we -- we're communicating and complying with law enforcement, but what we are doing that black market operators are not doing, is going above and beyond that. we spent $100 million across flutter on responsible gaming. and we're working across the industry with state of the art responsible online gaming associations to really make sure that we can protect our

consumers. >> i can't let you go unless we talk some football first. it's remarkable that you have this partnership with youtube for this sunday ticket. the world is just changing so dramatically. how is that working out for you, the streaming versus what you would get from a partnership with traditional media? >> we're working with many of the major streaming platforms right now. what it's allowing us to do is give our consumers, sports fans access to, whether it's more games through sunday ticket or having really authentic sbi gragss with the live broadcast. amazon is doing a great job. we're also able to customize a bit more. first party data, we can determine if you're a fanduel user, haven't signed up for the platform or maybe you don't want to see sports betting ads, we can really start to customize. so the integrations and access to great content is huge unlock and we're excited to say we're partnering with netflix this year for their two christmas games, one of their first forays

into live sports. very excited about this. >> it's a very lively, active scene here in las vegas, guys. we're enjoying all of the people around and the gambling, but boy, i have to tell you, morgan and tyler, it's so loud here. >> it sounds loud but also sounds fun. thanks very much, contessa and amy. we appreciate it. >> sure. meantime, pepsico higher despite lowering full-year ref knew outlook for the second-straight quarter. the soft drink and snack giant beat for the third quarter but fell short of revenue expectations. does our trader think the shares still look sweet? we'll find out ahead. three stock lunch. >> announcer: crypto watch is sponsored by grayscale. welcome to ameriprise. crypto investing begins with grayscale. sophie says you've been a huge help.

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welcome back to "power lunch," everybody. quick check on the markets. you see all three of the major averages a little bit high with the nasdaq leading the way up

1.25%. in the bond market, the ten-year yield holding above 4%. the two-year just below that level. to talk more about that, let's turn to rick santelli. hi, rick. >> hi, tyler. indeed, short dated treasury yields have been leading the rising yields really since mid-last week. that all changed today. we had a three-year note option. the first leg of 119 billion in supply, 58 billion three-year notes and if you look at the chart around 1:00 eastern on the right side of the chart, you see yields popped a bit. it wasn't a very good option. if you look at a two-day of threes, we never traded above yesterday's high yield. you see the downward angle of that. let's add in a two-day of ten-year and you can see a huge difference. ten-year, long dated treasury yields have traded above yesterday's highs. fifth session in a row they have done that, but they haven't remained above yesterday's highs. maybe losing a little bit of momentum as many investors are

having a change of heart about how good friday's jobs report was. now, i'm hearing instead of great jobs and high wages, i'm hearing government employees reach an all-time high, maybe it wasn't such a great report. and if you look at tens, we're now on pace for the second session in a row of the highest closes since the end of july. rgbao you. >> all right, rick santelli, thank you. the major averages holding on to gains although off the high. "power lunch" will be right back. car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

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any questions you have and help you choose the plan that's right for you. the call is free. and there's no obligation. you know medicare won't cover all your medical costs. so, call now and see why a medicare supplement plan from a company like humana just might be the answer. time for today's three-stock lunch. we're going to look at three headline movers. shares of american express on the decline. pepsico higher, reporting a third quarter result that beat

wall street estimates but lowering its revenue forecast as sales growth weakens. finally, we have your docusign soaring on news they're going to join the mid-cap 400. here with trades is ava ottos. we're short on time so we're going to cut straight to the one which is your buy. which is it and why? >> my buy is docusign. the other two are hold. d docusign is finally profitable. for 20 years it was an unprofitable company. they have finally turned the corner in the last year and a half. the gross margin has gone from 75% to 85% in the last four years and they have cut their sgna by a massive amount from 75% to 55%, and as a result, their ebitda has increased massively again from negative 15% to positive 7%. and so even though the company's

doing great, we see greatfuture going forward, and their rate evaluation is half their peers. the company was doing great during covid and then it dropped. now it's about 60. we think it's great going forward. >> that is good news for that company because the product is one i know all of us have used at one time or another. thank you very much. and thank you, everybody, for watching "power lunch." good to have you with us. >> i'll be back at 4:00 p.m. we have carli lloyd. thanks so much. welcome to "closing bell." i'm scott wapner live from post nine at the new york stock exchange. this make or break hour begins with, of course, the markets. we're watching the activity today because there is a lot going on. yes, we're up. we'll still a bit unsettled. tech good, china bad. another storm very much in focus today. we're going to ask our experts over this final stretch what all of it means to your money. in the meantime, the scorecard with 60 minutes to go in regulation, we have been green