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margins. bearish comments from goldman sachs expecting average growth in the s&p 500 to average only 3% over the next ten years but let's not forget that goldman's team that made this prediction has been low and incorrect before. >> and this has been an ongoing debate for the 15 years i've been paying attention and maybe it will be different this time and true this time but no one saw the 2010s coming with their platform stocks and it's a hard bet to make a move to the sidelines. >> who knows if you look at where the multiples are now you would not expect that we're going to get the 13% returns over the past decade. >> and they're hardly alone. barry bannister expects lower forward returns. weighing on those returns, for instance, in the dow lately have been shares of boeing. it's just one of the handful of stocks moving higher and bucking the market trend today they reach a deal to the union tied to the machinists >> down 38% on a year.

a company that has lots of troubles that may begin with the labor issues, but certainly codo not end there. >> the deal only tentative. >> bitcoin falling along with stocks, but along with stocks it had been near record highs a lot of money pouring into bitcoin is doing sothrough those etfs, so crypto making a little bit of a comeback, but down right now higher by 58%. >> crypto, gold, i mean we're seeing a lot of these take off as people worry a little bit about the dollar debasement play that's kind of a running part of this commentary. >> we start with big tech and the role ai will play in the onslaught of earnings expected in the coming weeks. while many of these tech giants are focused on winning the ai wars, apple has been criticized for lagging behind one report says apple's employees think they're two years behind other tech giants a "wall street journal" article out tim cook talks about his philosophy, not first, but best.

hear from some insight on this, the ai race and more, let's bring in intowrittena singh, co-founder of credo ai, steve kovach, our tech correspondent, also with us steve, let me begin with you how is apple all that far behind and i mean, you know, mr. cook making the case we'd rather be good than first. >> that has been the story around apple for decades even before cook was ceo, when steve jobs was ceo we're not going to make the first smartphone, we're going to make the best smartphone et cetera. you can game that out how it is. we're about a week away from apple intelligence actually launching for the first time this is what so many on wall street the big bulls on wall street are saying, this is going to drive a super cycle much iphone upgrades. we don't know how true that's going to be. we know by the end of this month, next week, they're going to launch at least the first

tranche of these ai features based on what we've seen on the early tests they're under whelming compared to what you can do in chatgpt and meta showed off a few weeks ago they are technically behind, but again, there's no reason to think that auto apple won't catch up this is a much longer game than what a lot of people are talking about. by this time next year we might be having a completely different conversation around apple. >> broaden out from apple but you can address apple if you like, my notes indicate that you expect earnings reports to reflect risks from ai, caution in earnings reports from major tech companies such as nvidia, microsoft -- nvidia later, regarding risks associated with ai as well as examples of governance what makes you feel this way and is that prediction being borne out in what we're hearing and seeing from these companies? are they highlighting risks? are they talking about governance and safety? >> absolutely.

well, thank you so much for having me, tyler one of the cool things about the wave that we are living through, the generative ai, there's a lot of excitement around the potential upside one of the things that we are all announcing is a caution around what is long-term sustainable value that these companies can deliver. a big component of delivering that long-term sustainable value is really grounded in trust that these companies can bring alongside these ai capabilities. so our prediction really is with the upcoming earnings reports to be able to see a much more caution around not only the unknown risk, but also the known risks that these companies have not been able to really sort of manage effectively because a lot of them are still building their ai governance programs and are in early innings of figuring out what is the potential upside of generative ai at production. >> there's another thing we have to play to this, let's talk about microsoft for a second

here which is also reporting earnings and all the other hyper scalers. how much are they spending to build out these ai as she mentioned, for microsoft it's going to be about $19 billion a quarter. $19 billion this time they're saying they expect even more, maybe $20 billion a quarter. meta, amazon, they are all spending enormous amounts. we saw this last quarter that they're really -- investors are getting impatient. we see you spending all this money on artificial intelligence with no payoff i'll go to microsoft again for a second year, while they do appear to be generating some sales on the cloud side what they're not doing as definitively the user facing stuff. they made a lot of big promises about this copilot assistant that they started selling to businesses almost one year ago, and there's very little evidence that that has taken off in the way that people kind of predicted. very little evidence that people are using it to make them more productive, really hard to quantify when you deploy this to

a workforce of tens of thousands of employees whether or not it's making them more productive. microsoft has a lot of work to do to really tell that story better and prove that story out, and it really hasn't done so yet. it's all on the cloud side and hyper scalers right now. >> amazing what a narrative change it's been a year ago. microsoft up 10% year-to-date, the s&p up 22 and all these new entrants into the market the ai arms race is not just taking place where we can see stock tickers and so forth the money flowing around silicon valley has private companies as well thinks will flourish. kate rooney in studio with us. the big headline is this valuation for -- there's many headlines around perplexity but fits into this discussion we were having. >> the big headline is the capital raise but it does fit into what you were talking about. i am told by a source $9 billion is the new price tag for perplexity a busy ai start-up looking to compete with google search the person tells me perplexity is in the midst of raising $500

million or so, its further time raising money this year. this is rare i should say. that is a massive amount of funding for one year these numbers could shift. i am told it's going to be a mix of new and existing investors. perplexity backed by jeff bezos, and "the wall street journal" was first to report the news last night. the start-up makes money off subscriptions for that search product, but the cash could very well be going to fighting off new legal battles over copyright. dow jones and the new york post filed a lawsuit claiming the ai start-up engages in what they call a massive amount of illegal copying of their work, brazen scheme to compete for readers while simultaneously freeriding the valuable content the publishers produce perplexity did not immediately respond to request for comment its search tools allow users to get answers with citations and the no times, "forbes," wired accused them of violations

certain revenue sharing programs to address these concerns but marks the latest example of the battle between tech and publishers how the companies can use the copyrighted content to run their ai systems dow jones is seeking financial damages that could amount to $150,000 per violation you're going to need the new cash pile. >> let's talk about this number one, what are these -- what are the ai companies including perplexity going to do with the money they raised, why do they need it? number two, more to the point of how kate's report ended there, how do you feel about these glorified search engines using or gaining access to copyrighted material have the laws not kept up with the practice, i guess is what my question would be? >> absolutely. so to address your first question, if we just sort of unpack what is needed for some of these large language models to even show up it's three

components one is massive compute infrastructure second is really access to good quality data and algorithms. and so what we are seeing especially the investment that are going into some of these exciting new private companies, is most of that is going towards capex. how do you have massive amount of compute which big tech has access to train these large language models and large gen ai systems and reap the benefits. now to address your second question, as you can imagine, a lot of these early gen ai players the reason they have been able to build these systems is because they've scraped the entire internet and had access to the data which has been available on internet really calling into the questions around data sourcing, usage rights, compliance with the ip laws it is an issue i think we should all be concerned about because

first and foremost, there is a lot of it copyright infringement already happening with these large language models and so what we are seeing with perplexity and dow jones, you know, case is actually a real reflection of the issue we have right now in the market is how do you ensure that the content creators their data rights are protected and this is going to be a very important issue that not only emerging private sector companies but also public companies take heed of because that's going to put them in crossfires and we're going to see more and more of these issues surface where ai governance becomes pivotal how do you ensure that you are complying with emerging regulations. how do you make sure that you are managing the risks is going to be key. >> i mean, if they had stopped to ask content providers everybody for permission or, you know, to do this in the first place, that's why it was -- >> they wouldn't be there. >> research separation.

>> right. >> nonprofit. >> never ask a lawyer for permission. >> only ask for forgiveness. >> there are stories about that. two things happening here. one is exactly what you said, chatgpt and all these things we keep talking about wouldn't exist if they hadn't splurped up the internet. >> it would be one thing if we all said, well, that was the original sin but if you want up-to-date information it's different. >> that's the problem now. how are they going to keep feeding the beast. >> perplexity is going through right now "the new york times" last week sent out a cease and desist order for the same issues and the ceo of perplexity told "the wall street journal" in the story we're not ignoring their requests we're not doing it i looked up on perplexity today, and asked it a specific question about the top story on newyorktimes.com result. first result. >> the way it's designed is through citation you can see we're giving you this information but we're going

to show you where it's from. you could be running into the same issues with openai and anthropic. >> the google news fight all over again the publishers know what to do on google news, what did the article say, type it into google news, you see a sentence of what you need to know and they didn't get the money and advertising and they're not going to let it happen again. >> two things that are fascinating, i wonder if sabrina heard this as well, synthetic data to the point where these ai systems have now scraped the internet, learned everything and they're creating new data to train themselves off of. so the thought from some of these ai ceos is we will get to a point they don't need the publishers. >> how can they train themselves. >> they've used it. >> there's no way. >> the current information thing. >> right. >> they'll get their own version of this to train off of. >> they'll write their own stock market stories they don't need to go to

cnbc.com. >> they don't need us. >> the other thing is that the kepgs will the biggest carve pile are said seth to win. openai raise massive amounts of money, billions, perplexity all of these ai startups in order to fight these legal battles and b, fend off competition from big tech, the ones with the biggest cash pile are the ones going to win and indicative of what you're seeing in investment markets right now. >> want to pick up >> absolutely. i do want to underscore that where this money is going is something that these companies should deeply be thinking about. rather than fighting off lawsuits what if they were directing the money towards safety measures and governance practices. and i think this is something that we saw recently at the ai summit where we brought in world leaders and the companies, amazon, microsoft, salesforce, you name it, the governance leaders from these companies actually showed up to our summit and a big question was how do we actually direct the capital

towards good governance practices to build around these so that you can make sure that you are complying to emerging regulations and morn impe imporl continuing to build the good hygiene around risk management. >> can you imagine the renaissance that journalism would experience if look at the deep pockets that openai -- this could be the best business model that has come along for this industry in decades if they all had to license all of their current information from all of these providers. it could be a gold mine. >> they said in one of their -- >> wouldn't be a bad business to invest in. i wouldn't want to invest in openai under those conditions. >> they would rather strike the partnerships than be suing the end game might be we're going to file the lawsuit but bet they will strike some sort of deal and dow jones news corp has one with openai. the woo side. >> fool me once, shame on me,

fool me twice. we went through this with facebook. >> as that as well. >> so many publishers catering to what facebook told them buzzfeed they built their business mostly on that. >> bingo. >> and if you do that with ai that's also a risk. >> yeah. well said. >> folks, thank you very much. navrina, thank you quick power check as we head to break on the negative side of the s&p 500. you have cigna, the insurance giant, lower on reports it's reignited efforts to merge with humana after initial talks of that stalled last year on the positive side kenvue, higher after activist investor starboard value built a stake in the company which was spun off from j&j we will trade it ahead in our three stock lunch. we will be back after a quick break. i promise you there's much more to come.

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connectivity is a big part of my boys' lives. it brings people together in meaningful ways. ♪ ♪ welcome back to "power lunch. shares of boeing higher as the company reaches a tentative deal with the union that could end that ongoing and painful strike out there. phil lebeau joins us with the details of the proposed contract it's more than boeing wanted to spend. what are the odds that the rank and file support it? >> great question, tyler look, 96% voted against it last time let's do the math. only 4% voted for the previous offer. they have to get to 50% plus one to approve this offer in order for the strike to be over. so what are the odds of that happening. keep in mind this is a richer offer they're voting on than the one last month

35% raise over four years. that's the big headline figure that's getting the most attention. there's a $7,000 signing bonus, richer than originally proposed and a $5,000 one-time deposit in the workers' 401(k)s what is not in this offer is a reinstatement of the pension program. now there is an increase in the multiplier for some of the older members who had a boeing pension but there's no new pension being offered to all of the machinists this is day 38 of the strike and the costs they're piling up by one estimate, this is costing boeing $1 billion per month. we're not going to get into the free cash flow implications. liquidity right now is believed to be somewhere close to $10 billion. we may get greater clarity on that when the company reports its q3 results on wednesday. boeing has also announced it is cutting 10% of its staff, so as you take a look at shares of boeing against the s&p 500, year-to-date, it has been a

rough time for boeing. this chart says it all remember, q3 results before the bell on wednesday, and again that's when we get greater clarity. during the conference call we will hear from kelly yortsberg when he talkses to analysts. >> will it get approved or go through and what will it cost boeing if it does? >> oh, it's substantial but not to the point -- look, it's more costly most believe if you don't get this resolved. i was at the wings gala in new york on friday night and generally speaking when you talk with airline executives, suppliers, leasing company executives, almost everybody says the same thing. it's costly, but you got to get this done because if this drags on let's say it goes into november and beyond that you really start to see pressure being put on the financials for boeing they need to get this done. >> all right phil, thank you for now. we appreciate it phil lebeau.

data shows consumer spending is strong with the potential for even more positive momentum as the fed lowers at least short term rates we will highlight some specific sectors which could cash on market navigator, next when it comes to investing, we live in uncertain times.

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welcome back to "power lunch. stocks are near session lows with the dow down 352 points, the s&p down 18. the nasdaq is barely in the green and the russell 2000 aren't on there but they are under performing today down 1.5% as we've seen a backup in the longer term interest rates the 10-year yield continues rising to 4.13 last check on tap this week is another confluence of economic data of earnings and fed speak that should give us a better picture of how consumers may fair in the near future. my next guest believes the numbers will signal a clearer path forward for spending and is here to tell us how to follow the money. the chief economist and head of research for investment researchers at axa group very confusing backdrop where the economy is better than expected, interest rates are rising, the stock market is rising as well, and there's much debate about whether the fed

should be cutting rates in this environment. what are you looking to this week >> well, honestly, when the fed is slated to cut by 50 basis points my first reaction maybe they were jumping the gun a little bit there was no absolute sense of urgency there. as you said the economy was doing perfectly okay my only guess is that they overreacted to some disappointing data in the labor market in the summer months. the issue for me is whether the sort of new consensus around the more prudent base means that the fed could stop altogether. i don't think so i don't think they have this at the moment my impression is what the fed wants to do is precisely avoid creating a situation down the road which would be consistent with a hard landing and to do that you need to cut rates at a steady base without triggering any massive moments. you still need to remove some of

the restriction which is currently in the system because we're still living with the risk that at some point the level of interest rates which remain much higher than the fed themselves tell us sort of neutral rate should be, there's a risk down the road it triggers nasty lending. steady on the way down. >> but your data show that we are going through the second acceleration in a row on the three-month annualized inflation rate, maybe the core inflation rate, which would be more significant. why should they be cutting rates or worrying about neutral? >> it's true if you look at the short-term momentum on a three-month annualized basis you can see there has been a re-acceleration in some segments of the consumer price index which normally the fed cares a lot about in particular core services excluding rents. so i agree that, you know, this should be -- for the fed

the way of this nature before we had, for instance, this hump in inflation in the first month of 2024 and discovered in the summer actually it was just sort of of accident, so given the fact that this re-acceleration is very recent, i don't think that the fed is ready to give up on the general direction which is accommodation another thing to take into account is we know there are external forces around there which in any case are probably going to continue taking inflation down we've been lucky so far but wholesale energy prices have remained tame and food prices have remained tame this is going to help maintain inflation on an okay footing even if we have to accept that it stays above 2% for a while longer. >> so you're betting on a series

of 25s here, not with standing the pick-up, maybe it will be softer round out the gdp number that looks stronger than we might have thought a few months ago. we will leave it there for now thanks for your time >> you're welcome. >> tyler. >> >> still ahead, diminishing returns. goldman sachs forecast 3% annual rate of return over the next decade that's down from 13% over the past decade. we will debate the bank's thesis with our own experts next.

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welcome back to "power lunch. i'm pippa stevens with your cnbc news update. secretary of state antony blinken is heading back to the middle east as part of a push to start cease-fire negotiations in gaza the diplomat's trip to the recently comes after the death of hamas leader yahya sinwar the state department says blinken will start his trip in israel the federal retrial began of the former louisville police officer facing civil rights charges in the death of breonna taylor and her boyfriend in a botched

police raid. bret hankenson is accused of depriving their couple to be right to be free from the unreasonable seizures. and more than 100 women's soccer players signed an open letter protesting fifa's soccer deals with aramco. the players who include former u.s. national team captain becky saurboon cited issues with saudi arabia's record on climate change and women and lbgtq plus rights calling on fifa to replace aramco with an alternative sponsor better aligned with these values. >> all right thank you very much. pippa stevens. it's been good times for the stock market over the past ten years. the s&p has tripled during that period for an average annual growth rate of 13%. that era could be over says goldman's david kostin in a note he estimates the s&p will deliver only a 3% annual return over the next ten years.

citing stocks' current high valuations as a key reason for the low forecast kostin has been relatively bearish. one example back in may he thought the s&p was unlikely to deliver any more gains this year capping his price target at 5200 the s&p has marched past that and is now sitting around 5850 let's discuss more with high tower strategies and cnbc contributor michael farr along with our own mike santoli. welcome to you both. michael farr, start with you, you know, we always have to be cognizant a period like the 2010s can't be repeated but do you think it's worth people changing their investment strategies with the prospect of potentially lower returns? >> never no absolutely no. no hope that wasn't unclear look, the goldman report does very admiral analysis and math and they're looking for a reversion to the mean after we've had a period of out performance. that all makes sense but it really gets to be a bit

too mall newsen for me when you take a straight line and project today's situation over the next ten years. 10, 20 years ago we didn't have an internet and didn't know how it was going to change things. we didn't have ai five years ago that anybody really knew about that has driven so much of the stock market returns, really in a back weighted kind of a way with enormous returns and then finally i mean we've had a glp-1 class of drugs for weight loss that also seems to address diabetes and a whole range of illnesses. the point here that robert found out when he was the first recognized economist out there and was wrong in his projections about how we would outlive our fuel supply and the population was going to starve everybody, that things advance and technology advances, the world advances and, so i get it and you have to always be cautious in the management of your portfolio, but at the same time, i don't think you can ever bet against the u.s. markets or u.s.

economy or corporate u.s. america. this will grow over time goldman could be right, but i wouldn't change a thing for now. be deliberate and be disciplined and you'll get through this. >> mike santoli, let me get you to react to what michael farr said you can't deny the fact that s&p 500 has tripled over the past ten years, up 60% over the past two years, and that would suggest that well maybe this party can't go on forever. at the same time, saying there will be a slow down in returns you could still make nice money at 7% a year as opposed to, you know, as opposed to 13%, 13% higher, obviously. >> sure. well, i mean 7% would absolutely be -- you would probably sign up for it right now given the starting point and, you know, i don't think goldman's an outlier here if you look at the standard math in terms of asset allocation entering today at a 1.3% initial dividend yield for the s&p 500

at 22 times forward earnings makes assumptions about there will be an economic cycle that interrupts the trajectory of earnings and you have to build in a cushion for absorbing some tougher times. vanguard maintains a ten-year projected asset return outlook and said as of june of this year, you know, 3 to 5% for u.s. equities over the next ten years. u.s. growth stocks, 0 to 2%. doesn't mean it's going to be right but suggests we've kind of built in a little bit of an expectation that things are going to remain pretty good. the little bit of a disclaimer here on all those kind of textbook analyses, is that the floor and the ceiling of equity valuation both seem to have risen over the last decade whether because the quality of the index, the companies dominating it is better, it's less cyclical, a lot of people have done much work on this, i mean in the last ten years, the s&p 500 has traded below a 15 times multiple, fleetingly a

couple times at major bottoms and never else that used to be the long-term average. i think you have to account for the fact that there's been some creep upward in secular valuation, but recognize that, you know, keeping expectations low is also a bit of a, you know, kind of should be in your toolkit. means you're going to save more, be diversified and there's nothing wrong with that. >> mike, if i may pivot to ask you about the other thing on my brain and bespoke tried to answer this, when is the last time the fed cut by 50 and had long-term rates go up by 50. it has happened, efts in ' -- evidently in '01 and '03 but this is unique, don't you think? >> honestly, it's somewhat unique i think a lot of things about this are somewhat unique, bulls also it was preceded by a pretty aggressive tightening cycle where we kept rates for 14 months or whatever above, way above what we consider to be neutral for the economy.

i don't know that you want to map the previous cycle's experience exactly to what we're dealing with right now there's no doubt about it. you've seen this re-acceleration or at least better than expected performance of the economy at the exact moment the fed cut by 50 and at the exact moment people are finding new reason to worry about things like treasury supply down the road i don't worry about the absolute level 415, 418 on the 10-year. we could probably make our peace because nominal gdp is 5.5 but you have to keep an eye on all that stuff. >> michael farr, if i am typically a long-term investor with a 70% equity weighting which is higher than some people suggest and a 30% fixed income weighting, what would you suggest i dock given the fact that i don't think you see any of the signs of sort of speculative excess in the market or any of the signs of a bubble that may be about to burst >> we don't have that sort of enthusiasm, tyler. we don't have everybody on the

same side of the boat saying stocks can't go down we don't have the leverage out there that you typically see for market bubbles so stay the course and stay disciplined and have a plan. you will it be fine over the long term. remember, my partner john washington said the time to buy stocks is when you have money and the time to sell stocks is when you need money and otherwise leave them alone you'll be all right. >> all right that's a good wisdom there michael farr and michael santoli, thanks very much. still ahead, what do robots, ai and balloons have in common. they could all help insurance companies pay out natural disaster claims faster we will explain how in our clean start next

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welcome back the wake of back-to-back hurricanes causing enormous damage across several states the task for insurance adjusters is enormous, but what if that task could be made simpler with balloons diana olick has the details in her series on climate startups diana. >> for decades insurance adjusters have used the same methods to assess property damage after natural disasters they visit individual properties and use small airplanes with high resolution cameras so they can see damage to roofs, structures, and neighborhoods. the planes speed the process and help prioritize specific claims. one start-up claims it can do one better you're looking at stratospheric ai enabled robotic cameras flying on weather balloons they're called swifties. the brainchild of near space labs of brooklyn, new york, st

start-up looking to modernize the way the shirns industry assesses property risk and damage in a volatile climate. >> with our balloons and our swifts entrance companies are able to get access to information right after the catastrophe and assess the damage and pay out claims within days instead of weeks and months. >> near space labs uses weather balloons to launch its cameras twice as high as airplanes go the cameras provide high resolution imagery over thousands of square miles. >> our balloons capture what 800,000 drones would with one flight this means that we can be better, faster, cheaper for customers. >> it's not just for use after a storm. insurance and reinsurance companies like swiss re are using near space to help them understand and price risk. the imagery of property specifics like roof characteristics, surrounding

vegetation, defensible space, all feed into customer ai data sets that part is especially attractive to investors. s. >> if you are actually able to use ai to do risk analysis, you need a cheap abundance source of imagery and, you know, we believe that at least over the next decade near space is the cheapest way to do this. >> in addition to third atmosphere near space is backed by crosslink capital, wire frame ventures, toyota ventures and leadout capital. total funding to date $24 million. near space says it has flown over 1,000 commercial missions but still ramping up its operations its ceo says they're focusing on risk analysis with insurers now, but by next year they will be able to react to major disasters from hurricanes to floods to wildfires. >> on this front with the technology and the surveillance and all of that for insurance companies, i had friends whose

homeowners got canceled because a drone saw there was a tree touching their house my agent says this happens all the time there's no you should trim this branch just boom, nonrenewed, branch touching the house, sorry. >> i don't know how that relates to what we're talking about here this is more about assessing risk due to climate change and natural disasters, but i guess if you're having those issues you should contact your insurance company. >> my point would be is there a way to whatever conclusions they're going to draw about coverage as a result and risk, is this an ongoing discussion you are part of or only going to find out if something happens to your policy or the rate goes up or so forth? >> it all goes into the risk assessment of what the insurance company is looking at when they price that for your home you can talk to them about what they're looking at, but, you know, insurance adjusters now when they go out after a storm they're looking at damage but when they price in the risk to begin with they're using planes

so they may see the same thing this is a cheaper faster way of doing it using drones and not the specific technology they're going to see the same thing as they would have seen ten years ago. >> all right diana, thanks. appreciate it. do shares of disney meantime are lower as the media giant lays the groundwork for a successor to ceo bob iger. we will trade it in three stock lunch next 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. glp-1 drugs used in weight loss treatments are a global blockbuster, even with disliked and inconvenient injections.

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it's the number one doctor recommended brand for ear ringing. and now i'm finally free. take back control with lipo flavonoid. ♪ welcome back it's now time for today's "three stock lunch. we've some of the biggest movers on deck. sylvia is here, the co-founder and ceo of defiance etfs welcome back let's start with kenvue, now the owner of things like tylenol and lysol mouthwash -- i think it's lysol. >> it's not lysol mouthwash. >> listerine. >> that would be a bad idea. >> listerine and tylenol activist investor starboard is taking a stake what do you do with the shares

of this spinoff? >> some lysol, sylvia! >> thanks for having me. definitely not going to try that lysol mouthwash. i think starboard getting involved is interesting. i just look at this company, and since they spun off from johnson and johnson, they're down about 18%. they have all of these great brands, and they've already talked about during their last couple of earnings calls about cutting costs, looking to improve on advertising and product placement and things like this, and still not much has happened the stock is soaring on this news prior to that we haven't seen a whole lot. and so this is probably one that i'm going to sell. i just don't think it's going to be a moon shot anytime soon. >> let's move on to u.p.s., shares falling around 3% barclays is downgrading, sees competition from amazon. do you agree with the barclays' analysts, sylvia

>> i do agree. they have the risk of competition from amazon. on the other hand there are some other issues here, too during covid these companies took off, right, they had all of these orders and deliveries and volumes were up, but since then we've had higher inflation we had tougher monetary policy, consumers were starting to cut back on spending businesses were starting to cut back on spending so this was a company that actually felt the risk of higher rates for a longer period of time, and i think that the global picture wasn't much better for them. and so i think until we see better global macroeconomic issues in terms of inflation coming down, cost cutting down, this company is going to struggle a little bit. they don't have that prepandemic -- sorry, immediate post pandemic type of revenues and demand before. >> 10% gain in five years. criminal in this kind of market environment. so what about disney speaking of underperforming. they are saying they plan to replace iger in 2026 and gorman will replace the current

chairman of the board next year. are you a buyer here >> so, yeah, i am a buyer here for the long term. this is a company that has been down about 60% over the last three years. they're finally up high single digits they have multiple lines of revenue potential, streaming, espn, hulu, strong ip, great movies coming out, and this is the house of the mouse people like it i think this will be a turnaround story in the years to come trying to catch up with netflix and tightening up shop >> sylvia, thank you crypto contributions, pacs are shelling out millions in political donation this is election cycle we'll tell you whothey're putting their money behind next. when you're looking for answers, it's good to have help. because the right information, at the right

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welcome back to "power lunch. bitcoin pulling back after getting close to 70,000. we've heard of it in the

presidential campaign but in down ballot elections. what have you got? >> tyler, with two weeks to go until the general fresh election data shows it is focused on close house races as part of an effort to push candidates favorable to the group's agenda over the top fair shake, the leading pro superpac has funneled a big chunk of its final donations to close house races in eight states including new york, nevada and california and several of those races are considered tossups by the cook political report and more than 70% of those donations are going to democratic candidates all in, $130 million in congressional races for this year's election including the primaries and what i will say a lot of that money is going to senate races >> i was going to ask you. is the senate figuring in this and who is collecting there? >> you had $10 million apiece going to the candidates in michigan and arizona, and then

overwhelmingly the vast majority of this money, $40 million, going to vote out the senate banking share brown who hasn't been favorable to the industry >> he's ohio, am i correct >> in ohio we're seeing a lot of crypto spend in the presidential race kamala harris getting $12 billion from larson. >> a little her way. >> we have to leave it there and leave you right here thanks for watching "power lunch. "closing bell" starts right now. hi, thanks so much welcome to "closing bell." i'm scott wapner live from the new york stock exchange post 9 the winning streak for stocks, the potentially big obstacles that still lie ahead rising rates, the election, earnings, all looming large. we'll ask our experts how to navigate it over the final stretch. let's show you the final scorecard with 60 minutes to go in regulation. the yields capping some of the activity in the majors each is in the red as we begin this final stretch to see what yields are doing there's the ten year, 4.18