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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. ♪ ♪ welcome to "power lunch," everybody, along with kelly evan, i'm tyler mathisen. inflation remaining a little bit sticky. we're talking about one-tenth of one percentage point over the forecast. this is adding to concerns nonetheless that the fed will maybe not cut as aggressively as some thought. >> especially as bo stick with "the wall street journal hit the wire and he's thinking of skipping the november rate cut. we have a lot of things buffetting the marks and we have delta missing on earnings.

ceo ed bastion saying the quarter was hurt by the crowd strike outage and the impact from hurricane helene hurt results by a couple of pennies and he said there could be softness around the election that consumers may pull back on travel. >> helene was one factor and hurricane milton has disrupted lots of flights in orlando, tampa, tampa st. pete, sarasota and so forth and it could trickle into results and tesla's big robe o tax i event is in hollywood. elon musk has said that totally autonomous driving is key to the company's future. good luck with that, i say. i had the autonomousversion of tesla, i stopped it and didn't trust it. >> you used efd. >> the car could drive itself. >> it's a software. you can put in -- i can say go

from home to work, and it will drive me there, but it gets a little afraid sometimes. i don't know. we'll see. call me a skeptic. that's all i'm saying. >> there are plenty of people who would normally think well, we'll wait for the technology to be ready for prime time, but their waymos drafing themselves and -- i'm sorry, that keeps happening. >> that's elon musk on line 2 saying get on mathisen because he talked trash about me there. >> that's a way of saying let's see what you've got. >> let's dig deeper into the inflation numbers, shall we? the consumer-price index rose by 2.4% annualized last month which was slightly higher than economists were expecting by about a tenth of a percent, maybe two. now you have food prices up 2.3% compared with last year. energy prices dropped nearly 7% year over year. gasoline down 15%, but those two categories are volatile which is

why they are stripped out of the core rate. the core rate rising 3.3% led higher by services up 4.7% and shelter prices, they rose just shy of 5%. there are all the numbers you need, folks. so what impact is this going to have on the consumer and how does this change the fed's rate cut plan and joining me is the chief investment officer at northern mutual wealth management and our own michael santoli, cnbc's markets commentator. why don't you sum it up today. taken by itself, these inflation numbers indicate the continuing or the non-disruption of a trend lower in inflation even though the number may not have been as perfect for some market swamis would have liked? >> not an ideal number and certainly one that's digestible and the presumption of where we're headed for inflation and one of the reasons, too, that the market didn't have too much of an adverse reaction to it is

the move with the bond market has been dramatic since the jobs report last friday. yields were up that we were not caught up by the idea that maybe the fed would be doing less and we have the fed that will moderate the nature and the magnitude of its next move based on the incoming data and what bostick said he was connecting the plot, and it turns out he was one of them. the other piece is the fed has shown it's much more sensitive and attentive to labor market indicators and potential deterioration in jobs. therefore, to me, that's what the market wants to see. the market wants to see a fed that's more responsive for the downside scenario rather than being extra vigilant at this stable of the game with the fed funds rate still just under 5% and the inflation in the low 2s. >> brad, let me ask you, you seem a little concerned about

what you describe and this goes way back in the mex con of economics. a wage price spiral, you point to the fact that a couple of large employers, amazon, walmart and the long shoremen are going to get major wage increases over the next few days and that this could continue -- this could feed into more inflation. how worried should we be? how worried are you? >> i think there's a delicate balancing act which historically they haven't done a good job they do tend to have the signs of weakening and unfortunately, it tends to trend and then it's too late. >> i think this time it's a bit different because there is inflation and the embers are burning and this is a late cycle economy. we have fewer workers still, even though we have a bit more unemployment than we did, but if demand picks up, where are people going to keep inflation lower. >> wages rise and that's the

final frontier for the fed to keep cutting. >> they have the first time because they did see signs of the labor market weakening and since they cut now, they've seen a jobs report and now the cpi that i disagree with the context there, if you look at median cpi which the fed does take a look at, it rose .4% and so did super core net services. i think the path forward is a bit more difficult than investors are currently thinking about. >> interesting point. >> mike, what would you add to that, and for the weeks to come, what is it going to dominate? is it going to be the data? is it going to be odd of what the fed has done or will it be the election? >> you have earnings there, too, kelly. >> that's right. earnings. >> it would be a welcome distraction if it came into more sharp focus. the ppi will party for the pce. we'll be reading through all these things and i don't disagree that at some point in this process stickier inflation

becomes a problem for the fed. i just don't know that it's right now with the fed funds between 4.57 and 5 and a lot of room between now and neutral. i also don't think that the stock market would mind less fed easing or less fed accommodation if it were combined with a more solid economy. i think it is the election in terms of, you know, a lot of hedging going on. a lot of people expecting more choppiness in october, but it not really showing up at this point. i see the surveys and the retail investor survey, and the lowest number of bears in the aai survey since late last year. people are generally upbeat about how this ends and they feel like they might be static between here and november that they mate have to navigate. >> you seem concerned about large-cap stocks and because we for a late-cycle phase here that maybe the turn is coming eventually to smaller caps. we've been hearing that a long

time and so far it really hasn't materialized. >> you heard it in 1999 and 2000 when it was a similar market when the market became very narrow because the economy became very narrow. it's a slice of it. think about manufacturing. think about the lower end consumer and the middle income consumer and it doesn't appear to me that the fed will aleve yit yat that. i think the question is what happens next and for investors who are more interested in returns over a three-to-five year period, small and mid-cap stocks regardless of a landing, they have been priced for a recession. on days like today when rates are up, they are carrying the s&p 500 while most economically sensitive parts of the market sell out like small caps. and that's nearer rather than further away. >> brent, isn't inflation and sticky inflation for them, the russell earnings were flat for three years as rates spiked and

wouldn't this be the worst-case scenario now? >> how much of that is already priced in? take a look at the prices and hasn't been buying the mag 7 because they're less economically sensitive or believe to be? that's where i think it's looking for and thinking about what the likely outcome is and i don't think the fed will cut aggressively which is a headwind until it isn't and that's when i think it's too late to try to time owning those. so we continue to think about being investors. we continue to position towards what's cheap and where there is less optimism, which i remain you, optimism is a contrarian indicator and you've seen a large amount of optimism in the survey and the conference board and people thinking that stocks are going higher and that's a contrarian indicator and that's associated with further strength in the future. >> thank you so much for your perspective and michael santoli, thanks to you, as well. >> for more on today's inflation number and what it could mean for the path of those interest

rates, let's go to rick santelli in chicago with a guest. rick? >> yes, neuberger berman, welcome. what do you think of today's cpi and initial jobless claims? it's a disappointing number and it's a stronger number that is going to cause probably a little consternation for the fed and the biggest takeaway is the headline number 3-3 and we're having slower progress toward the fed objective and then you look internally for the number and we're seeing upward pressure goods prices and the biggest one is the core services with shelter and that's an inflation rate that's still right around 5%, and i think it's just speaking to the next 12 months and getting more progress on inflation and it's just going to be harder and that's going to put the fed in a bind. >> helene hit on the 26th. i doubt if much of that was in this number, and that's probably something we'll see over the next month and the hurricanes

will impact some of the job data. it's hard not to reach the conclusion, we looked at the lastpayroll number, we were talking about this and the economy is in good shape and it's being coupled with inflation and it's harder to get down to the fed start. >> many have talked about hey, if we see weather-related inflation you can't adjust monetary policy, and i would agree with that, and it hasn't shown up, but if the fed is committed that they believe inflation has slayed and they change to labor, whether they are relevant or not, whether they're already in the box with hot inflation that will not be an easy issue to deal with, is it? >> no. we've been talking about this, right? the bond market is priced for the fed to take the policy to the low threes. it's around three, 3s and on. >> depending how you look at the yield cur snoob there's still easing priced in and i think it's unlukely and i think it will be unlikely that this will

be a straight lean easing cycle for the fed and whether it's the next few months or early next year, there will be a decision where the fed will think about taking a pause on this cycle. >> having said that, and i listen to you saying this, october 1st, if you look at every session, second, third, all of the way on. tens, 20s, 30s, higher yield every day and every single session, today would be in the serveth and they've had a higher yield than the previous day's highs. what do you think the market is trying to say here? >> i think two things issue the data and the inflation and what it means for the fed and i think the market is now starting to refocus on fiscal and what that's going to mean and some of the impact it could have on yields. >> neither candidate is focusing on fiscal and that's for sure. thank you for joining me today. tyler, back to you. >> rick, thank you very much, and as we head to break, let's do a quick power check on the positive side of the s&p 500. you have crowdstrike rallying

and despite the delta ceo blaming the tech firm's recent outage as the reason for the airline's earnings miss. on the negative side, first solar getting burned along with the rest of the solar names and currently on track since mid-july, the 15th. jefferies is lowering the price target and when we return we'll return with key movers with three-stock lunch. and elon musk's program ear of the robo tax i, what is the musk strategy to disrupt the ride sharing space? we'll discuss that when "power lunch" returns in a couple of minutes. personalized financial advice from ameriprise can do more than help you reach your goals. i can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about.

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welcome back to "power lunch." it's time for a deluxe three-stock lunch today. we'll get the stories on three stocks in the news and get

trading advice on each one of them. our trader is will mcgrath. thank you for joining us with this and we'll start with delta air lines which is down 3% after an earnings miss. they plame crowdstrike, helene and even the election and let's turn to phil lebeau for more details on this. phil? >> when you look at the third quarter. i call it a noisy quarter which ed bastion called it this morning at the company's headquarters. they did miss on the top and bottom line and there was a 3-cent inpact from hurricane helene that they did not factor into their models when putting estimates together and they do expect choppy bookings around election day. here's ed bastion explaining why they will see a slight hit to revenue in early november. >> a temporary pause for consumer activity. people like to be home during the election period. they don't want to be out

traveling. i don't think they want to be spending money until they understand what's going to happen. >> so as you take a look at shares of delta in the fourth quarter, they are expecting revenue to be up 2% to 4% and by the way, they expect record fourth-quarter revenue with a growing 2 to 4% and 1.60 or 1.85 a share and the estimate this morning was 1.71 and their guide is between 1.60 and 1.85. they could still hit it and they have a margin of error. will, what's your trade with delta? >> he nailed it. it's kind of a messy, and disappointing earnings. and guidance wasn't that well, and it was down 5% in pre-market and it's down a the bit now. listen, i love delta. i live outside of atlanta and i'm an exclusive customer and all i've ever flown and airlines are are a tough long-term

investment and you have to look at the ten-year chart and we believe in better pricing power and more predictable growth and delta can't have predictable growth with their antiquated technology that shuts them down every four or five years. i'm a seller here looking for better investments. >> we have advanced microdevices, ceo lisa suh announcing ai processors and other chips at an event in san francisco, but the real news, the real news is that kristina partsinevelos is back. welcome! >> i'm back for only one day, though. i'm taking a full six months' maternity leave and even if the ai chips are, quote, insane. i know you heard this from jensen wong earlier this week or crazy as foxconn's chairman said also earlier this week, amd wants you to know there is room for them to compete and ceo lisa suh just finishing up her keynote in san francisco where i am today announcing the mi325x

which is nvidia's h200 chip according to amd with availability this year and it's the third chip on the screen if it's confusing to you there. right now it will have two chips in direct competition with nvidia and that's the conversation that it could be an alternative. suh announcing the overall market for ai chips will go from 400 billion in 2027 to about 500 billion in 2028. so a big increase in one year and they previewed the fifth generation cpu chip which does general tasks on a computer and they claim they own a third of the cpu market which was once solely owned by intel. so you can see how the competition has ramped up between those two companies and much of this news was expected by the analyst community and if you read their notes and you saw them talking about had and it could be down 4% and no new customers announced today. you had the stock run up, what?

double digits since september 1st neck and neck with nvidia, so you can assume this news was already priced in. if you're wondering, how is amd going to invest in nvidia? i'm hopping to get all answers to those questions with lisa suh at 4:00 p.m. eastern time first on cnbc. >> kristina, great to see you. we'll see you next time. will, your trade now on advanced micro? >> yeah. i like what kristina was saying and it will be a buy here advancing a ii conference and la suh will talk about how it affects everything we do. there's a lot of risk with it with either direction, there issa a lot of risk and also a lot of return. i think the market is aggressively looking for ways to invest in ai chips outside of nvidia, even though it's up 16%

year to date, amd, that is, and nvidia is up 160, so you can diversify your risk away from nvidia here, and i will caution like nvidia, amd is relying upon production of chips in china and anything could be a drag on performance which would be the only piece of caution i would have compared with the buy rating i'd give it. >> thank you, will. >> let's turn to the big banks because they get set to report quarterly results and we want to know how the fed cut can affect their earnings and how it might change the story. leslie picker is standing by with more. hi, leslie. ? hi, kelly. yeah. that's the number one question analysts have with the outlook. rate cuts could be a headwind with profitability in the near-term because floating loans tend to price down quickly than rates paid out on cdss and that

gap is in the medium term trajectory in part with what you mentioned with rates moving upward over the last week and a half or so. morgan stanley research said specific commentary is driving outsized reactions driving higher bank stock volatility so pay attention to that. on the flip side, a lower recession coupled with cheaper financing should bode well for the m and a pipeline and of course, the election a few weeks away corporates will get more regulatory clarity that may help c suite confidence for bigger transactions. even though they indicate a little choppiness and it appears the markets are looking past that with the financial sector hitting a record high yesterday, although slightly in the red down half a percentage point today and we'll get a read when j.p. morgan and wells fargo report first thing in the morning. >> we asked you for a bank name

you do like and you gave us pnc. the big regional looked to as the barometer and we're showing big banks there and what would you do with both of these trades? >> thanks, kelly. i'm enjoying the superstar lunch because the team is nailing some of the thesis. we like regional banks and the space also because pnc has nasa management business in capital marks. they've got a good long-term trend and stable earnings growth above average relative to sector and dividend both and strong balance sheet and the reason we like banks that are about the report and they're not the local banks and they'll benefit from the loan base being more variable in nature and as rates come down that will perk up and lead to more activity for them. they've seen strong income fee off the market operations which should help them meet their guidance and we'll find out next tuesday to see how that's going to look and they're also

investing in their card business to increase penetration in the consumer business there, as well. so we look for very well diversified regional bank that has all of the potential to continue to have stable earnings growth going forward which we would be a buyer of here and our team in overland park is a big fan of. >> i guess the final comment, that is, what about the big banks? do you take that as a barometer here? anything you'd want to own there or no? >> so big banks are tough just because they're dealing with regulatory issues as you highlighted. they've got big national banks are bloated in my opinion, so i would be careful here. as investors we are looking for more targeted exposure and stability with regard to the positioning in the earnings growth versus the big banks. >> all right. >> thank you very much. will mcgough, we appreciate it. >> over in the bond market the

investors are detecting a disconnect. the central bank cutting rates and yet yields are rising and we, more the market navigator when "power lunch" returns in two minutes. (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com 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 we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe

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welcome back to "power lunch," everybody. you see the industrials off 156 points and the s&p down about 18. minor losses here, about a third of 1%. dom chu, what is -- what is in today's market navigator? >> we'll go deep into the rate side of things, ty, as exemplified by today's economic data and the cpi. the markets are getting ahead of themselves in terms of the fed rate expectations, but our trader thinks the disconnect could offer an opportunity to capitalize with a trade idea. joining us today is the head of systematic fixed income with allspring global investments. manju, thank you for being with us today. let's talk a little bit about this notion of the cpi and what it means for the rate picture? why do we think that the marks have gotten ahead of themselves with regard to projecting rate cuts down the line? ? yeah. that's a great point. thanks for having me. so if you look at what came out

of the fed meeting last week -- or last month, rather. the forward guidance they gave us was two rate cuts for this year and six rate cuts by the end of next year, but the job came out friday and the cpi data that came out today shows there are still risks for inflation and if you look at the inflation number itself, the supercore inflation is still rising. the wages are still riding, 4% year over year, so that still poses risk for inflation. the u.s. economy is still on the strong footing, right? so the jobs data has been stellar and the pmi last week was awesome. to me, when you put it all together the risk to inflation is still high. so to me, in using alan greenspan's words, right? the irrational exuberance of the rates investors, the fed funds futures are pricing in two rate cuts for this year and then about six rate cuts overall by the next 12 months.

so to me, there's a disconnect, to your point between what the fed is saying in terms of them being data driven which is what the rates investors think the markets need to do. >> we got a confirmation with the bostic headlines. >> we might pause. >> we might pause the rate cuts. take us through the trade. how would you then capitalize on this notion that maybe the rate cutting pictures. >> given the surprises ere, right? in the last week or so, i think there's potential for more surprises over the next few weeks. so i think the best way for investors to play this is to really have rates upright in the long end of the curve or the best option in my view is to position for a curve flattening, right? if you look at the curve, the two-year part of the curve is optimal, so what you essentially would be doing is you would be paying the three-year rates and

receiving the 20-year rates and positioning yourself for what we call as a bear flattener saying the rates would fly higher and that is the best way to position for any potential upside surprises that we would see in growth inflation in the next few weeks to months. >> let's be clear one quick point before we let you go. this is the long end rates moving slow toreer to the upsid the shorter term rates moving higher and there's the flattening. >> that's the flattening. >> that's exactly right. exactly right. if you look at the curve it was pretty flat in june, and the 20-year part of the curve has actually steepen in the last two months or so, so there's potential for it to go back to another struckture we had about two months ago and the risk of inflation growth is the drive.

>> manju, we appreciate it. we'll see you again soon. >> flatter does not necessarily mean inverted. >> no it doesn't, but the point manju is betting is some traders are betting on the aspect and some traders, retail wise are playing it with etfs, so what you can in essence do is sell or short shorter term bond etfs to use that money to then buy longer term bond etfs and that plays that flattening, as well. >> that's above my pay grade. dom, thank. here's what's still on the menu for power lunch. a fracture at pfizer. the biotech giant growing even more divided and the starboard is at the center of it all and we'll have those details ahead. florida's battle with mother nature. we'll take a look at the damage so far from the storm and lay out what still could be to come. "power lunch" will be right back.

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lunch." we are seeing red arrows on the trading session. the s&p down a quarter of a percent and the quarter percent decline on the nasdaq and in the meantime let's turn our attention to hurricane milton which blew through florida last night and this morning. the process of cleaning up and restoring life begins now as millions of people are without power. nbc's priscilla thompson joins us from fort pierce on florida's east coast. thank for joining us. what can you tell us? >> kelly, i'll give you a look at what we're seeing in the neighborhoods where the tornadoes tore through. you have huge uprooted trees just like this one. folks have been out all morning through the neighborhood trying to cut down some of these trees and assess the damage, but this is what it looks like up and down this block right now. you have blue tarps on a lot of these cars because the windows are busted out, and so you can just see the deaf station that happened here. one person here described it as he walked out of his door and it was like the entire neighborhood

had been annihilated, but i will tell you that in the neighborhood just next to this one it is even worse. that is where governor desantis has confirmed that a number of those deaths occurred, the deaths from tornadoes now up to five and we were able to get a drone up in that neighborhood to look at some of the destruction there. we are not showing that material because it does appear that there are search and rescue teams working in that area still, and right now police are not allowing any people who do not live there back there, but it is just homes that are completely gone back there, so truly devastating and one other thing i want to point out here, you see the windows covered here. people here did their best to prepare for the hurricane, to prepare for hurricane-force wind, for rain and flooding. what they were not prepared for was when they started getting tornado alerts and the tornado sirens started going off and many described hunkering down in their homes and doing the best they could and coming out to see devastation that looks like this, but i will tell you

throughout the day today we have seen neighbors coming out to help neighbors, remove some of this debris and many people here just saying that they are grateful to be alive after what they experienced over the past 12 hours. tyler? >> priscilla, thank you very much. it was an incredible scene last night. i had a friend send me a photograph of a dumpster, an industrial-sized dumpster deposited on the top of a house by one of those tornadoes. just crazy what nature can do. thank you very much, priscilla. >> let's get over to bertha coombs for a cnbc news update. tyler, sean combs also known as diddy will go to trial in may on sex trafficking charges. his family showed up to court today for his first appearance before the trial judge who set the timeline this afternoon for the proceedings. the hip-hop mogul's lawyers asked for the trial to begin this spring. a federal indictment accuses the grammy award-winning artist of orchestrating and coordinating

sex acts. he has pled not guilty. the princess of wales accompanied prince william to southport in northwest england today to meet with the bereaved families of three children killed during a knife attack in a dance class in july. it was her first public appearance since she completed chemotherapy. and you can now test for covid many and the flu at home with a single swab. the fda granting authorization of healgen's combination rapid tests this week. the agency says it can be used independently for those 14 years older and for kids starting at age 2. no prescription was needed and just in time for what is likely to be a really, really busy respiratory virus season, tyler. >> thank you very much, bertha coombs reporting. all right. coming up, tesla's next driving force? the ev giant pulling a

long-awaited unveiling in california. how much will elon musk actually reveal and how will investors respond? we'll get a preview when "power lunch" returns. crypto watch is sponsored by grayscale.

welcome back to "power lunch." tonight is tesla's highly anticipated robotaxi event. let's bring in phil lebeau on what exactly to expect. hi, phil. >> kelly, there are two things that people should be focused on tonight. first of all, let's talk about the robotaxi unveil and the discussion about the tesla robotaxi network, rideshare network, maybe they have a different name for it, but at the event tonight robotaxi will get the most of the attention. this tells us whether this is

elon giving us something or elon putting on a show. specific operational details, something like cost per mile. this is our estimate and this is what will build the vehicle and what stands out about it and the timeline for a rollout and is it going to be specifically tied to the first half of 2026? early 2027 and there's got to be time line for people to say now we can game this out and the types of autonomous models and we are told that there will be a two-seat model and we heard that there may be more of a community ride model, if you will. those are -- that's the guts of what people really want to see in terms of robotaxi. keep in mind, the other part of the story that wall street's probably more focused on is if elon musk makes reference it a lower priced model that will be coming perhaps if the first or second quarter of next year. remember in the first quarter, they said we'll start work on a lower-priced version and maybe a

stripped down version of the model 3. what did they tell us about that this evening? if they tell us something that could be tomorrow. the company delivered 8.13 million vehicles last year. it's been growing steadily from the beginning. i don't think they've had a down year if i'm not mistaken, that may change this year because right now the estimate is for 1.87 million vehicles to be delivered and they're at 1.29 million deliveries through the third quarter and they'll have to have a record number of deliveries in the fourth quarter. can that happen? sure, it could happen, but that is what people will be focuseded on tonight, guys. they focused on the elon musk show and it's about the details of the robotaxi and that's what wall street will be looking at. >> phil, hang on for a minute as we switch our conversation to talk a little bit more about elon musk injecting himself further into the 2024 election

cycle. he has, as you probably know, been stumping for former president trump and aggressively so. so is it alienating democrats who might buy cars from tesla? let's, more that with steve kovac with that piece of the musk puzzle. what do you say, steve? is it showing up in sales? phil just said that sales are not as high as they were. could politics have something to do with that? >> it's hard to really make a strong cor lagszrelation there,, ahead of the event tonight musk has been spending the first part of his week campaigning for trump for president. on saturday, of course, he was at that trump rally in butler, pennsylvania and that was his first formal appearance with trump on the campaign trail and according to nbc news, musk also called pennsylvania governor job shapiro while he was at the steelers game at pittsburgh on sunday. shapiro told nbc news the call was about musk investing in the state, not about politics, but it is notable muvsk initiated te

conversation with the governor, perhaps the most important state in this election. he also gave an interview with tucker carlson on x and you can probably guess how that one went and he's been offering $47 pages to people registering to vote all ahead of the robotaxi event and something musk and tesla need to justify its massive valuation and "the wall street journal" had a story earlier this year and musk's political behavior have created a negative sentiment around him at a time when tesla is struggling to grow its vehicle delivery and an nbc poll from last month, only 6% of democrat his a favorable view of musk. 79% of them had negative feelings and as you can imagine, guys, nearly the opposite of republicans. 62% have a positive feeling about musk, guys? >> phil, let me turn back to you. you mentioned that they're on pace to deliver something like 1.79 million cars this year.

>> 1.78 million cars this year. is there any thought in your mind or in the numbers that that slowing of the growth rate is attributable at all to musk and his political positions? >> i don't buy it at all, tyler. i think that there's no correlation between a slower growth rate for tesla, and actually sales would be declining slightly this year, and his political leanings, work, whatever you want to call it. look, i have plenty of friends who are very, very liberal, very democratic, and they are still tesla fans, and it's because tesla dominates the electric vehicle market. while people may not like some of what he does with donald trump, i have as many friends who are democrats as who are hard core maga trump supporters who believe in tesla because it is the best electric vehicle out there in terms of sales and in terms of they set the table for everybody else.

i never have someone come up to me and say i'm thinking of buying an electric vehicle? should i trust tesla? i do have that question about other brands, and that still says something regardless of his political leanings. >> steve, in what you collected, was there any evidence that people were shying away from purchasing teslas? >> it's hard to make that correlation to phil's point, and i'll go back to "the wall street journal" story in connecting the dots, it's impossible to say. we have the polling data of nbc about the favorability about musk himself. what i will say is he's been holding major ceo -- he's the only one of the magnificent seven companies that we talk about so often that's out there actively and explicitly campaigning for one candidate or the other. so i think that's just also interesting to see how he's spending his time in context of this incredibly important event that he's been teasing for the last five or six years that this

is what the future of the company hinges on and we're expected to get details on that tonight. as questions come up about how he's spending time among the companies and not just tesla and spacex and what he's doing with x and his various other companies, also his political activities are taking up much of his time and by the way, he's said along with trump that he could have an info rememberal role about government spending and the future trump administration next year, guys. >> very interesting, guys. thank you very much. i appreciate it. phil and steve. >> still ahead, we'll get the latest on pfizer's activist drama. the shares are down nearly 3% today and down 11% over the past year. details after this. ♪♪ 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

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new turn. two former pfizer executives that we thought would work with the activist fund now say they support pfizer's current ceo albert borla and the really interesting part is why. an angelica people has that. >> just days before pfizer and starboard, we are seeing this about face from pfizer's former ceo anne reed and frank demilleio. people have threatened to commence lit gag against them, claw back prior compensation and cancel uninvested performance stock unitis. a person familiar with the interactions between pfizer and the former executives telling me the risk of legal liability was a driving factor in the reversal. it's been a messy few days, tyler. it was only sunday when we first learned of starboard's $1 billion stake in pfizer and the

publication indicating this whole thing started with an email that was probably an accident. the former cfo reported lead sent a blank, mail to borla with the starboard representative copied on. something was brewing and bringing it to the spotlight. we still don't know what change starboard is looking for and they're set to meet with borla and the board and other members next wednesday. that stock down almost 3% today and it's down more than 50% from the pandemic peak. >> this is an ongoing story. i know you'll be following it for us. we'll get to it next time. >> incredible detail. >> thanks for watching "power lunch," everybody. >> closing bell starts right now and i'll see you at 5:00. >> yes. welcome to "closing bell" i'm scott wapner live from post 9 at the new york stock exchange. this make or break hour begins with the fate of this rally, stocks are asssi