♪ hello. welcome to "power lunch," everybody. alongside kelly evans, i'm tyler mathisen glad you could be with us. stocks are turned higher this afternoon with all three averages evidencing small gains, i do mean small there. .06 in the s&p 500 yields continue to rise. prices falling after last month's fed cut. and it's not just u.s. rates

rates are moving, kelly, around the world. >> problematic for places like europe, like germany, still seeing long-term rates move higher uncomfortable position to be in. >> he's long gold, worried about inflation. there's lots of concerns about china's economy as well. the imf cutting its forecast for china's gdp growth not with standing the recent stimulus efforts. >> they're trying to get things going there. but the growth rates seem to be coming down in china we'll hear from one country who says china is very much investable these days. we'll chat with the ceo of mccormick, the spicy company always an interesting company to talk about because of the insight into what people are eating therefore buying and today a particularly good day for it because a new article on cnbc.com talks about the

sweet and spicy trend. we'll explore that with the ceo of mccormick let's begin with earnings. several big name companies are making big moves following their results. let's lay out the moves and get the trader reaction in a deluxe edition of three stock lunch so deluxe we're bringing it up from its usual place in the back half of the show right up here to the very top. our reporters have details on three earnings movers. phil lebeau on gm, seema mody on 3m and pulte and the trade from chad the first stock up, phil, is gm. the company easily beat wall street expectations for the third quarter. shares surging today let's get to phil for more >> they're surging because this was not just a beat on the top and bottom line, this was a beat by a wide margin they came in with earnings that were 53 cents better than the analysts consensus

so the top line, bottom line estimates were blown away. solid sales and strong pricing especially in north america. their profit in north america up 13% compared to the third quarter of last year and it's one reason why they lifted their eps guidance on the lower end. brought up the lower end of what the minimum will be. also raising their 2024 profit guidance as well look at the stock there. up almost 10% on the day if there is one area that people might sit there and say, i'm not real crazy about this. what's going to happen it's china which used to be a big profit driver for the company not the case anymore look, they lost $137 million in china in the third quarter they are going to be restructuring their operations they have some meetings coming up over the next several weeks certainly some time in the fourth quarter but guys, very few people are focussed on that what they're focussed on right now is the fact that general

motors they've got it going in terms of pricing and demand. they're in the sweet spot of the market when it comes to trucks, suvs, et cetera. >> phil, thanks very much. so let's go to chad morganfeller and ask what he sees on this stock up 9% today. chad, are you joining in on the rally? >> well, not likely. let's just say that this company historically has very volatile earning streams as well as unpredictable revenues one of the critical things about this company is that they are going to compete with chinese automakers over regarding the global side over the coming not only two years but five years and seven years where the pricing of sensitivity is going to be pretty extreme so, you're really in a competitive environment. the stock is up 50% year to date we would be fading this trade. >> thank you. let's move along to 3m those shares are trading

slightly lower after reporting better than expected third quarter. but the company's turn around plan may not be going exactly as analysts hoped it would. let's get to seema mody for the full story there seema? >> kelly the initial excitement 3m raised outlook is wearing off shares initially hit a 2-year high this morning. rbc capital says the source of the selling is the market's assessment that the whole turn around and 3m is much likely to be a longer grind. encompassing multiple quarters if not a couple years and consumer business this quarter reported weaker than expected number now the industrial conglomerate is going through the big turn around recently spinning off health care, embracing big cost cuts. and setting settlement shares gaining almost 38% under its new ceo bill brown who came over from harris in may. brown said on the conference call this morning that the company is exploring the sale of smaller businesses in its portfolio. about 48%, 47% of analysts have

a buy rating 11% with the sell. the average price target at about 148. the stock currently trading at 133, kelly. >> seema, thank you very much. chad, what do you do with this one two-year high earlier today. there has been a lot of optimism. >> right, kelly. this is up around 30 plus percent year to date it is a turn around. we would again stay on the sidelines with this. we are constructive on many materials like emerson electric. the evaluation looking fwlard is p multiple 17 times. they still have some head winds to get through and i do believe that the turn around is fully reflected in the stock price at these valuations. again, we are constructive on certain industrials. we would see that opportunity within emerson electric. >> all right finally we have the pulte group. they beat third quarter estimates. the shares are slipping today. let's get to diana olick for the

details. >> pulte beat on the top and bottom lines for q3 but the stock is down 6% because gross margin was lower than the year before, dropping from 29.5% to 28.8%. home closings were up 12% year to year and revenue 4.48 billion not only topped estimates. the average sale price dropped to 548,000 from 549,000. unchanged from a year ago. the fed's recent rate cut provides a powerful tool in helping to address the affordability challenge faced by today's home buyers. but mortgage rates are up sharply since the fed cut rates more than half percentage point, in fact, with the 30 year hitting 6.85% today on the analyst calls, cfo said third quarter margins impacted by higher incentive costs giving competitive market dynamics higher incentives were needed to help ensure we can continue to sell homes and turn our assets

there was also commentary on the recent hurricanes. marshall said the biggest impact will be lost of construction time and power as well as delayed inspections. tyler? >> diana, thank you very much. are you a constructive person on this construction company, chad? >> well, you know, we are on the long-term tail winds of the housing industry and building. due in part because housing formation continues to rise and you don't have a lot of inventory there. with that said, this stock is up close to 50% year to date. this is more of a beta play on interest rates so as interest rates go higher, this equity price will suffer. that's the factor exposure to pulte. i would suggest buying home depot as a replacement here. less volatility, higher quality company, more durable earnings consistency with a rising dividend so i would avoid this one. and just stick with home depot

>> i like the buy this not that sort of sub text today, chad that's a future segment brewing. >> thank you, kelly. >> chad morganlander. >> chad was calling it chipotle, i think he did very close that would be a good name for it. ahead on "power lunch," we'll get a bit more macro on the economy here in the u.s. and around the globe let's get insights into the consumer and restaurant space first with the ceo of mccormick holding an informser day and shoring positive side on the long-term goals. the treasury sield, the yield on the 4 year shooting above. jumped 12 basis points yesterday. not just here, yields spiking across the globe as things look better in the u.s. and china but investors wonder will the fed back off on rate cuts. president xi and india prime minister modi reaching a border deal to ease hostilities in the region all signs pointing to a turn around or no and what will it mean here in

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♪ ♪ welcome back to "power lunch. bond yields are once again on the move today continuing this climb we have seen since the fed cut rates in mid september. the e10-year yield pops for the first time in three month. let's bring in rick santelli in chicago with more since we have seen july, 4.2 w yeah, since the end of july, absolutely and what's more, as you pointed out, it's a global event and it should be a global event i heard you bring up growth. it's fascinating because much of the growth that we're talking about is at the epicenter why interest rates are going up. think china, think germany, think the u.s. many of these countries have overspent on stimulus to create the growth the imf is starting to measure maybe bigger down the

road but it's the cost of that growth it's the return of our stimulus money with regard to that growth and all roads lead to more debt to create the funds to create the growth and therein lies the problem that every large economy is playing the same card game >> rick, i think the question to ask is the u.s. in a meaningfully different position? our economy stronger we know the problems about europe but their bond yields, the long-term bond yields are rising as well. what does that tell you? >> well, you know, despite what the economist says, despite the fact that we seem to have the best economy, let's not lose sight of a couple other facts. we've spent more during and post covid than any of those other economies, a yes, we are doing a bit better because we're the locomotion locomotive that has a good head of steam even if you have policies that aren't pro-growth, it takes a

while for that engine to slow down i think the real issue here continues to be how much growth is it going to take to overcome the overhang of debt or the cost of putting more debt out there to keep replenishing the funds that we need to keep the lights on and you can say, you know, taxes and all the promises the candidates are making. but the issue with that is if we don't start thinking outside the box, trying to find in ways to create growth and stay with the same tried and true static comparisons of things like text policy, we're going to be chasing our tail down a path that ends with significantly higher rates, define buyers to buy our debt. >> what would be an example of a thinking outside the box of what you describe as the same old sort of static reliance on tax policy to spur growth. what would it be >> i don't mean to get political. take one of the candidates

talking about things like no taxes on social security what i think of here is an immediate look at how those would be expensive just the way you look at tax cuts being expensive. but what is not considered is how it alters behavior from an investment, from a savings side. now, i'll give you an analogy, tyler. let's say you didn't get a tax break on buying munis. and all of a sudden we wanted to give a tax break on buying munis. there would be a lot of inertia, that's going to raise the debt of the future. that's going to cost us money. but think about the benefits for having that tax benefit. we build roads, bridges, sidewalks that might not have gotten done otherwise. we need to think outside the box. and we have to quit thinking about the fact that -- >> with respect, rick that doesn't sound like you're thinking outside the box at all to me what you're really relying

on once again are tax inscentivs of one sort or another, right? >> yes n a way. >> yes, yes. >> pretty much how does the government get the money, it's taxes. >> as a way to spur growth or the idea that making municipal bond interest tax free is an incentive to build, those are traditional -- those are pretty traditional uses of the tax code to incentivize activity, right >> tell me the last time -- tell me the last time we lad any tax policy so traditional where both sides of the aisle agreed that by lowering tax, it would be beneficial see, that's the part i'm talking about thinking outside the box you and i both agree that maybe all roads lead to less taxationcome is the way governments spend money and spend it much less efficiently the new thinking outside the box is to look at those areas more honestly and realize that just

because we overspend our savings doesn't mean the issue that gave us those savings is a bad deal >> yeah. i guess i just thought that when you said we need to think outside of the box of traditional tax policy we weren't going to talk about tax policy >> i guess we are. there's no other way governments get money. how else do they get money >> on that point, both paul tudor jones and paul cohen said the path of least resistance is to let expire the personal tax cuts in 2025. >> wrong, wrong, wrong, wrong, wrong. >> you know the deficit situation. tell me the path around it then? >> listen, if they want to do that, and there's no growth in the system, we're all going to go down together trust me because there's no way and, here, you want to really talk about thinking outside the box? okay the federal reserve is lowering interest rates these are not unintelligent people what does the market do?

it's flashing back that central banks can't control everything the point is here is maybe central banks are going to lower rates for reasons that they can't say outloud because it would be here say. >> if they do -- >> we all know there's only one way -- >> they can try. >> there's only one way to grow out of this and that's to inflate out of it in addition to tax changes. >> what's what tudor jones said. gold and bitcoin he said exactly this he said exactly this. >> my classmate from uva, paul tudor jones. thank you, rick. coming up, netflix seems to be the be all and end all in the streaming space, especially as the other media giants struggle to turn a profit but our next guest says one good alternative to netflix could be a different kind of streaming stock and it's up 105% this year we will reveal that name in our market navigator when "power lunch" returns

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everybody. let's give a quick check on the markets. stocks have turned a little bit. i do mean a little bit higher this afternoon fractions of 1%. dow industrials pushing in on 43,000 dom chu, what do you got in today's market navigator, sir? >> tyler, could bigger gains come from smaller packages that's what we're going to navigate today spotify is actually hanging just below its record highs at this point. our next guest says the streaming service could ride the coat tails of bigger entertainment rival netflix. now spotify is due to report earnings later on next month on november 12th. joining me now is todd gordon, the founder of inside edge capital to get ahead of that trade. whether netflix sets the stage for even more outperformance on a relative basis from the likes of spotify they're not direct competitors, but you get the idea >> no, you're right, dom they're part of the same sector. and industry, not industry group, within communications

but, spotify looks great as you said, it's hanging below the high i held the stock since i first add it in feb of last year, added sub-feb of this year added a little more. if we can break above this all-time high, probably after earnings dom, i would like to add to it. the technical chart if it's up, you've got the old high from 2021, set to go. and this is in a market that's still kind of hesitating the earnings in this company, dom, are insane. looking over at my notes here, forgive, i don't have it memorized. in 2022, they lost 2.09. this year they're going to make about $6.5 and next year looking for $9 right? they're generating a ton of free cash flow. last quarter they blew away expectations i think they've won the music streaming war over apple and amazon pandora and also tiktok just closed their music streaming service. as i mentioned, netflix just beat part of the same sector their ad-supported tier was very

strong and spotify is using ai to generate this ad platform so they can increase rev flew there. but, also it's just indicative of increased advertising and a stronger space i like it. probably looking to add after earnings again, this will be my fourth add on spotify. >> todd, if that is the case and looking to make this catalyst-type trade, cha exactly is the strategy? you tried to add after earnings. are you expecting a pullback on the heels of those results why not add right now and how would you play it exactly? >> yeah. what a great question, dom you know, there are certain stocks in here namely some large semiconductor, a couple large coms as i already mentioned. you can't be afraid of momentum in this market because the tape collectively is quiet. we have some macro influences affecting the indexes. but there are some stocks, large cap stocks that are just trending, momentum,

institutional money is flowing in you can't be afraid to buy if i have to buy it up, 5, 8% off earnings, i have a good cost basis. you should be riding stocks that are generating significant profits in this market can't be afraid to buy strength. so if it's higher, dom, i'll buy it. >> how do they turn the corner on profitability >> really good question. they have really crimped down on their costs, they're generating a lot of free cash flow. they're adding a lot of subscribers. and i think just that momentum as it seems that people are turning away from apple. amazon didn't work pandora, huh sirius, huh. big one is tiktok they shut down bytedance. the efficiencies, free cash flow generation last quarter they beat free cash flow by 50%. i think they're looking for 350 million in free cash flow came in at 550. my numbers are off 20 or 30 million. generating a lot of free cash

flow and it's a wonderful product. >> big in music. big in music big in podcasts. >> podcasts. >> dominant name there as you mentioned some of the other competitors just don't seem quite as robust as spotify does. todd, thank you very much. >> so what's interesting about this, ty, if you look at the reason why netflix did so well, part was that whole ad-supported tier group in a stretch consumer environment, many people are talking about right now and people are making decisions where to allocate their money, many are trading down. they're not going to pay the premium. go for the ad-supported side of things that will be a key, the discretionary income, whether or not people trade down. >> and how many you have how many you carry do you carry spotify and apple and amazon prime what do you carry and what can you afford >> right now the consumer is good if it gets worse, those will be tough choices i think. >> dom chu, thank you very much. kelly? >> thank you both.

still to come, the billion dollar question, vice president harris has been trying to walk a fine line when it comes to taxes the wealthy. won't rule a tax on unrealized gains but happy to let the likes of mark cuban say it will never happen what the campaign may be planning exactly when "power lunch" returns

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welcome back the harris team has a serious balancing act on these final days of its 2024 campaign. can they come up with a plan that derives some additional revenue from the wealthiest americans, do it without frustrating middle class voters or alienating rich voters? what's their plan exactly? >> that's the balance that they're trying to strike here. and the proposal that we heard the most about when it comes to taxing the wealthy is this controversial idea of taxing unrealized capital gains mark cuban have been out this week telling everyone that harris won't pursue it top harris advisers tell me the root of the issue for harris is

this belief that she has that billionaires need to pay their fair share that's the language she uses on the campaign trail but open to different ways of getting there. and there's one alternative rising to the top. some of her close advisers have been writing memos and pushing for a tax on billionaires borrowing. when someone takes out a loan against their own wealth using their assets as collateral, put a tax on the value of that loan. it's similar somewhat to a consumption tax and down payment on your tax bill because you're not then taxed a second time once you do realize those assets it is produced small potatoes here one puts it at $100 billion over a decade and most comes from solely the 400 wealthiest americans. the advisers pushing for it see it as both politically pal pale palettable >> why would a billionaire take -- i'm curious. why would a billionaire take a loan against their wealth? in other words, i guess so they don't have to realize a gain.

>> yep. >> to get income that they need or want to support their lifestyle. >> that's exactly right. and a lot of these folks don't take an income if you're finished working your taking the loan out to finance your lifestyle talked with one economist to pay for a mortgage or buy a yacht, whatever it is, if you're taking that loan out, right now it's not subject to any tax at all. that's where they see a loophole the supporters of this taxi a lope hole could be taxed. >> if we look at -- which polls should we trust that say that this is actually narrowing or going in trump's direction versus which are those that say, no, those can be influenced by whoever is making these online bet. just bring us up to speed. two weeks out. this is the final stretch. >> absolutely. nobodysoever confident right now. i talked to somebody today who feel like it's 2016. a little similar to 2016 it feels like there's a little bit of premature finger pointing which isn't really a sign of confidence but also nobody wants to get

overconfident. they like being the underdog this harris campaign sort of likes the idea that maybe they need to scare people to the polls but not going to project a sense of overconfidence or premature sense of victory because they want people to realize every vote counts, every step of the way. they're still kind of approaching it that way. whether they really feel scared or acting like it, you be the judge. but that's the sense that i've been picking up. >> every one of the so-called swing states are within a point with the exception maybe of georgia which looks like it's a little more red than blue this time around. but, it is incredibly close. >> all within the margin of error. you can't make any assumptions of that. some people think harris or democrat would have to be several points to correct for error, it's harder to pull trump supporters than democrat they're more scared because of that the other line of thinking if you want to be more optimistic, polls got better between '16 and '20, maybe they'll get improve that much more between '20 and '24. we just don't know yet

maybe the writing is always on the wall and will win comfortably or maybe she wasn't ever up enough in the polls and this was always clear that trump was going to win. >> wow. >> what's your bet on when we will know the winner >> i think -- i'm thinking -- >> it ain't going to be tuesday. >> i don't think it will be tuesday. we're making all these plans -- >> i'll put my money -- >> you're going to say tuesday night by midnight. >> 9:00 p.m. >> wow >> let's go! >> we don't need the west coast polls. >> the market sold off 1,000 point. we have to remember how much changes in those early hours -- >> then it came back the next day. >> this is partly why -- there's so much that will happen that night that we think we know what's going on. and we still -- even if we think we know the outcome have no idea what it means for the markets. >> no idea what it will mean for the markets. the harris campaign is comparing to combat messaging from the trump campaign what if he comes out and declares victory, they're not sure that it is victory, what do they do? there's so many things up in the

air you can't plan for it. let's get over to seema mody for a cnbc update. u.s. intelligence officials warning foreign adversaries could stoke post election violence officials say they have intelligence showing russia, china and iran are intent on dividing americans and are highly likely to conduct disinformation campaigns to create uncertainty and undermine the democratic process meanwhile, two campaign sources confirm to nbc news that the presidential hopeful donald trump will tape an interview with joe rogan this friday rogen's podcast is one of the most popular in the country, especially with young men. the news comes after vice president harris was said to be considering interviewing with rogen as well. and american airlines testing a new boarding system that turns away people who try to get on the plane before their designated group, also known as gate lice. according to "the washington post," the technology gives an audible signal when someone is too early and tells the agent they're in the incorrect group american is currently testing

the system in albuquerque and tucson and plans to expand soon. kelly? >> thank you very much, seema. we appreciate it after the break, a bull in the china shop luke capital upgrading one chinese tech stock saying it would benefit from the country's stimulus but will china's recovery plans hold in the longer term? we'll discuss when "power lunch" returns.

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welcome back, everybody, to "power lunch." chinese markets are higher today as the country's chi is showing some signs of improvement. last week, third quarter gdp came above guidance. our next guest says there are major risks and challenges that remain sean ryan, founder and managing director of china market research group shaun, good to have you back always good to see you on a scale where 1 is flat and 10 is bubbly where is the

chinese economy right now? >> i would give it a 1, tyler. so as you know, i've been in china for 27 years they're only two times that i've been really scared about a systemic financial risk in the economy. the first was in october of 2022, when we were dealing with the madness of 0 covid, draconian laws in china. at that time if you were considered a close contact of a close contact of someone with covid, you would be sent away to a quarantine hospital for 15 days so people didn't go out to restaurants. they didn't go out to shop because they were scared of having their family members taken away the second time i've been very nervous was in august and september of this year the business sentiment, consumer sentiment collapsed. companies stopped hiring that's why there's an 18.8% youth unemployment rate. it's very difficult to fire people in china. if somebody has been working in your company for nine years, you have to give them 30 days notice

plus nine months of severance. instead of just laying off workers, what companies started to do was cut salaries they actually started clawing back bonuses from previous years and started demoting people. so what ended up happening, tyler, in august and september of this year, a very toxic, scared work force permeated throughout the entire country. and that's why retail sells were only 2.2% growth in august and everything hit a standstill. so the government had to launch a monetary policy. and that's why what i call a mini stimulus but that's why you've seen the chinese equity markets boom in the last three to four weeks because the government realized if -- >> what has caused, shaun, this collapse, if i may call it that, in sort of the economic animal spirits of the chinese consumer? that's question number one when you say something like this, when you say that this economy is a one on a scale of ten, do you feel vulnerable to any -- do you have any fear of

retribution or that somebody is going to knock on your door when you say stuff like that? >> well, i think everybody knows i tell the truth and so i'm going to be very balanced and very objective on what the economy is. it's a very bad situation, which is why i'm calling for the government to launch more incremental targeted fiscal stimulus we need to get not just the equity markets booming but we have to get the unemployment market back working, we need to get jobs to people we need to have reforms to help small business owners be able to feel comfortable they can invest chinese households have doubled their household savings, more than that, from 8 trillion to 20 trillion in the last eight year. there's still a lot of money in china. but we have to get those animal spirits back in order for the chinese to go out and purchase fixed asset and investment for companies, hire people or to go out and buy more nikes and adidas and iphones again >> if i'm a u.s. investor, where -- and i am persuaded

there is a turn around that will come eventually, where would you recommend i put my money today would it be in chinese internet stocks or things that are more pr prosaic and closer to the ground. >> the economy is bad but because of the targeted stimulus we see a slight up tick. medium to long-terms i'm bullish on china investors should be looking at the internet stocks, they should also be getting the cheap consumption mays like made a household appliance company, catl, a battery maker and looking at things like luck in coffee so the trade down is still a really good play for investors to be looking at because consumers are scared about the geopolitical overhang. to go back to your question from a few minutes ago. why is the economy so bad. the run-up to the presidential elections, the biden regime is

increasing the number of sanctions and tariffs on china he slapped 100% tariff on chinese nevs trying to ban all auto software coming from china into the united states. so in august/september, in the run-up to the presidential elections, chinese just got nervous an thought we're going to be dealing with 20 years of oppression from america. so we're not going to buy big ticket items. >> would the chinese rather see trump in office? >> i think in many ways they would rather see trump i'll give an example trump said i don't want to see chinese automakers exporting to the united states. i want them to build factories in america and hire american workers. now, tyler, that's fair. that's what the chinese did to america. to ford and gm when they first tried to enter the lucrative chinese market that's true reciprocity. trump has also said he most likely won't defend taiwan, biden on three occasions said he would defend taiwan militarily trump is more likely to launch tariffs. so basically i think chinese

would prefer to see trump because they feel that he's transactional, business in nature and a deal can be done. it's not an ideologic fight between liberal democracies and communisms, which it is under biden and the chinese fear would be under harris and walz walz is a pro-democracy zealot the chinese are scared of. >> shaun, thank you very much. always good to see you, sir. shaun ryan. >> thanks for having me. >> the new book "the split". chinese tech stocks are in the green today and our next guest feels optimistic about the chinese tech sector. he upgraded jd.com from hold to buy stating the company is a top beneficiary of china's stimulus. see if he feels our way after our previous discussion. shaun makes good points, rob you're still saying you see opportunity, though. and we should not let people lose sight of the fact the macro debate is what it is but the argument for owning some

of these stocks that they're trading two or three times and their trying to do things to engineer higher stock prices. >> yeah. that's it. where are we going next? and we've been in a period where these have been very far from favor for a very long time and valuations have been historic lows, rightfully so and now we're looking at things moving forward they came with a lot of policy initiatives that were announced in late september on the monetary side, coordinated effort across many axes. that was obviously a trigger for revaluation. the stocks ran 30% given back and in no man's land and waiting for fiscal stimulus as a follow up to what they outlined on policy measures. that's been frustrating for investors. interpreting the chinese government is always opaque and it's clumsy and it's sort of blunt instrument and it's not how global investors are accustom to dealing with --

government intervention action so, any way, i think that one of the major points that your previous guest brought up is that the chinese consumer does have buyer power the problem has been crisis of confidence that crisis of confidence actually started back in april of '23 when the shanghai lockdowns were really extreme and causing a lot of consternation. they have not recovered since. that's what we're looking for now. the government is definitely stepping up. and we will hear, in my opinion, we will hear more fiscal stimulus probably over the next several weeks. that's going to, i think, be a catalyst for confidence to begin to improve. >> if you were to say here are the areas the surest thing to own, are they 10 cent jd and the like >> yeah. the reason we upgraded jd is because it was in the worst position for the consumption downgrade and has been, i think, if we look at some of the

targeted stimulus, it's in things like home appliance and consumerelectronics and things that they sell so i think that one is positioned to maybe rebound more than others because it's been impaired more than others on the way down i think they will all go up. it's going to be, buy them all i think that probably the call it's all of them well, we'll see the same outlook. but those that are underperformed i think will -- and those that are exposed most directly to consumption will i think outper tomorrow. and that leads us to jdd. >> rob, thanks for your time we'll dig in more in the future. but for the macro call, we still appreciate it today. rob sanderson with luke capital. ahead on "power lunch," we want to add some swice to your life a new trend exploding in the restaurant space sweet and spacey all at once could this benefit the likes of spice giant mccormick? i would guess it probably would.

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lunch," everybody. yields jumping in the u.s. and

around the world, specifically here at home investors are balancing good economic numbers with concerns the fed may cut less than aggressively on the consumer front specifically things look okay, employment strong, discretionary spending lifting retail sales. in the food and restaurant space the spice giant mccormick seems to be holding strong, shares up about 13% this year. the company holding its investor day today, laying out where it sees its business heading. joining us now is brendan foley, president and ceo of mccormick welcome back good to have you with us. >> good to see you again. >> i see you have a big jug of my favorite sauce, fred's hot sauce right there. put it on anything, it makes everything better. as you look forward to the rest of this year in 2025, what are you seeing healthy consumer >> well, you know, we're looking forward to a great holiday season we have big plans for the holiday and are launching new products like our finishing sugars this is a big time of year for mccormick, one of the biggest

times of year for us. >> we're talking about this concept of swicy which is sweet and spicy. kate rooney suggested we take some of your old bay seasoning and put it on a sweet potato and that would make it really good tell me about swicy. is this something that's made up out of whole cloth or whole spice or is it really happening? >> no, it's really happening think about this as the combination of heat and sweet. you know where you see this today is in cuisines like in mexico or thailand or korea, this is very reminiscent of what you might find in those cuisines we identified this in our favorite forecast in 2022. we are able to as a flavor company predict what we think is going to come forward in the next three to five years and we're finally starting to see this on menus. tyler, you can buy frank's head hot with honey, we call it hot honey, another example of heat and sweet together. >> that's interesting. do you focus group these various flavors or is it -- do you do it

by observing what's going on in restaurants or regional cuisines around the world how do you come up with the idea that speetweet and spicy go together >> all year long we go all over the world looking at culinary trends and what's happening around the world we have a really strong culinary team and food scientists of product developers and they all get together every year to create the flavor forecast for the new year the new one is going to come out pretty soon in the next couple of months. it starts to predict what we're going to see as favor trends in the next three to five years these are globally informed, also social media and mining that data tells us what's happening and what's going to be breaking through pretty quickly. we spend a lot of time focusing on this because it creates the next level of innovation for us. >> brendan, we were talking earlier about old bay on french fries which is delicious. >> it is. >> you would think that mckesson and lamb weston would go hand in

hand they keep talk being restaurant weakness, this post-pandemic adjustment is still happening but you seem to be telling a different story. what accounts for that >> we're focusing on meeting the consumer where they are and we still see a lot of growth in our business as consumers apparently are eating more at home we see a lot more growth in the grocery store around the perimeter, buying more produce, buying more protein and they have to flavor that with -- for those meals so we see a lot of growth in spices and seasonings, condiments and sauces. consumer right side looking for value and this is a great way to put a meal on the table. no one ever sacrifices on flavor and that's why we see a lot of growth in our business right now. >> brendan, thank you very much. we appreciate your time today. continued good luck. >> thank you appreciate it. all right. openai beefing up its executive ranks announcing a new couple of hires and kate rooney is joining us with the details. >> good to see. >> you thank you for the tip on the old bay and the sweet potato. >> i got a full front row seat

to spicy two major hires at this ai darling oppenai. first scott schools, he was a associate deputy attorney general at doj, was chief compliance officer at uber openai says in the release that it builds on some of the ongoing efforts to responsibly advance ai another hire ronnie chatterjee, the first chief economist, they say this will help them understand ai's economic impacts, makes sure the benefits are widely distributed chatterjee is a professor at duke's business school, served as a senior economist in the obama administration also chief economist at commerce under president biden. these are seasoned executives from outside of silicon valley and that tech bubble they both worked in democratic presidential administration, it

does align really with some of the more experienced hires openai has brought on lately think of chris lahain who joined from airbnb. sara fryer also cfo was a ceo of a public company they are beefing up establishment hires. at the same time they are losing some technical talent. they've seen an exodus, most notably the chief technology officer, also reportedly raising capital for a new startup but she left recently. >> i don't think you hire a chief economist because you need it internally, i think this is all public positioning for a company that sees itself increasingly as a target and trying to not become one. >> and google and facebook did this so it is common in silicon valley in the early days to hire an economist, but i think you're right about the broader implications not just to find out what's going on in openai, but if ai has the big global implications that they argue this is going to be key but there are people in poll sir, people in government it's interesting, kind of matches with the flavor of

executive that they're bringing on. >> who was that first hire and i think it was in compliance or was that -- >> so this is scott schools, the chief compliance officer comes from uber, so that's a complex regulatory environment they had to jump through hoops to get into all of these different -- >> novel. >> ai is probably similar in terms of the complexity. different business model but similarly complex and also tense regulatory environment uber wasn't welcome in new york city, for example. >> or o'hare, chicago. >> that's right. >> you couldn't go there on an uber. >> and openai now has to make the case and deal with publishers who say we want to be compensated for up to date information. >> that's going to be a big battle that we talked about yesterday. they're fighting the regulatory front. it's very much a global company in the way they've positioned it these are going to be key hires and does match up at the same time on the technical side they are losing key players you're seeing this barbell effect. >> why don't we take a quick look at where the markets stand

with our remaining 25 seconds. the industrials are 0.01 of a percentage higher, 42,937. there's the s&p turning negative by a little bit. nasdaq higher by one-tenth of 1%. >> still turning green in afternoon. >> "closing bell" starts right now. thanks so much welcome to "closing bell," i'm scott wapner here at the new york stock exchange. we begin with the markets. they are attending a turn around in the final stretch the score card with 60 minutes to go in regulation. what was mostly a down day has come around a bit n fact, we are positive on the nas and dow albeit slightly even as yields remain elevated today and that remains a story to follow. there is the ten year at 4.20, energy, consumer staples, tech helping the markets out today and microsoft is leading from the mega caps along with