now, we look to the horizon and we see the way forward. "finals. >> pfizer, xar >> live nation >> thank you "the exchange" is now. ♪ ♪ they did that in three seconds. scott, thank you very much welcome to "the exchange." i'm kelly evans. here's what's coming up this hour tech is bouncing back today, but one of our guests is the most hedged against that trade. he's been all year he's been making some big portfolio moves and tell us where he's trimmed, where he's adding, and why. southwest and elliott management have reached a deal it's good news for bob jordan, says one activist watcher. he tells us what could be next for the airline, and whether you should buy the turn around

story. three more names on deck with earnings. our trader expects another record quarter for this one. it's our mystery chart, up nearly 23% year-to-date. she's a buyer. big reveal is coming up. first, let's reveal the market reaction with dom chu >> kelly, it's a bit mixed right now, but the broader s&p 500 is still in positive territory by 0.2% it's at 5806, up about eight points, maybe 0.1 of 1% at this point. nine points at the highs, up roughly 20 points, down 13 points at the low, the broader s&p. the dow off by about one half of 1% boeing, a big part of that story. 42,332, 180-point loss the nasdaq, 112-point gape big reason why, we'll tell you, it's testesla. and u.s. treasury prices are up. the ten-year note price is up.

yields are falling to the 4.198% mark with regard to that big story on where we see the biggest downside, the biggest decliner in the s&p 500 is news mont. there is real concerns about whether or not the rise in gold prices towards records that we have seen over the last few weeks is enough to pro-fell newmont, which is seeing cost pressures of the cost it takes to extract gold out of the ground from the lows earlier this year, until the highs just before yesterday, it was at nearly doubling in stock price. that gives you perspective on that big drop we're seeing there. one of the best performers in the s&p 500, tesla the electric vehicle giant coming out with better earnings, narrow miss on revenues, but the projection by elon musk about a 20% to 30% vehicle growth and better profit margins is pr

propelling the stock to best level we have seen in over three years. a 20% gain right now to $256.45 per share. it is a big part of that tech outperformance today back over to you >> a great reminder. first of all, tesla is incredible but the miners, everybody has been buying them on the rally. sometimes it's easiest to play the commodity. >> some of these companies are levered one way or the other we can see the down point to that that 20% jump in tesla is a reason for the rally in the mag seven today, but my next guest has been pulling back, moving money into other areas like value. he reduced his tech exposure due to the election, geopolitical and debt cycle risk and is the most hedged he's been all year james is here, chief investment officer at clockwise capital we have to play this up, james, because we remember your big amazon call a couple of years

ago. did it meet objectives, or no? >> yes, amazon met objectives, but you have to adapt to the dominant market cycle at play. we were probably the longest we were all year about a month ago, you know, predicting a 50 basis point cut from the fed but after that move happened, it's like where do you find the value and go with that money a lot of those stocks had gone to the tech companies, the big mega cap companies had run so we were looking for alternative areas to deliver outflow between now and then looking into areas like value, we had added like general motors, for example. looking at the metals, we like alkoa, freeport, u.s. steel, and looking at these smaller cloud service providers and software companies that had been left for dead, that we added, too so really, it's about taking from those mega cap names,

putting them into value and other appreciated stocks or names. and while keeping our semiconductor exposure >> what kind of market is this if you're getting out of the mag seven, the big names that made so much money and going into gm? i know they had decent earnings, but what is really going on here >> just a lot of uncertainty when you have predictability and certainty in the market, you can lean into the tech cycle that's where all our money will go but we have unprecedented times, uncertainty with the election, what is happening with the fed's balance sheet, and obviously geopolitical too many unknowns right now to lean in a concentrated, overweight way in those names. now, we're still there in those names, we're still in amazon, still in microsoft, for example. but we like the more secular winners. our top weights now have gone from the mag seven, robinhood and spotify. we think there's more upside in

those names and we've rotated from those mega cap into value and smaller caps >> a lot of people would say secular winners are the mag seven. >> yes they are but at what price do you pay them, and what is the opportunity cost of holding those positions over others? because my job is to deliver output as much as possible above the market on a consist tent basis. we're up 35% this year, over 50% greater than the s&p we have to protect those gains and stay vigilant and be tactical where we can. right now, we're just exercising more caution, given the degree of unknowns. the markets are at all-time highs. where is that output going to come from and we don't think it's necessarily coming from the mega caps. >> tell me how you're thinking through inflation, which is a different story. it's been stickier, people figuring out how to play that narrative best if they think

that will persist. you have some exposure here. you're looking to u.s. steel, alkoa, freeport, why not say my inflation hedge is gold or something -- we saw it happen with the miners today. >> yeah, we like gold as well. anything metal we kind of throw into the portfolio we don't think we're away from the inflationarytive yet completely, there's also uncertainty with what will happen with the fed. the feds fund futures continues to tick lower. we were supposed to have 75 basis point cuts in november and september. now that's down to 50 basis point cut. so, you know, we're -- the economy is proving more resilient than not so we want to keep that inflation hedge on, because at the same time, we don't know the pace of rate cuts from the fed, and we would rather be cautious than not >> last question, where are the

semis an area you're sticking with some relative overexposure here >> sure, that's the mother of all secular themes the world is only going in one direction. it's going to be increased automation, increased improvement in productivity across the board and increased opportunity for abundance across the economy and society. so semiconductors will exhibit more volatility, but you have to be there now, we have trimmed -- nvidia was our biggest position, but we have trimmed that back above $140 so it's more about keeping the exposure there but platening out, keeping less concentrated weights and spreading them out over a multiple of names >> i can't wait to check back in and see how this worked out. it's a hard thing for people to do, to walk away from the mag seven, even with microsoft not doing that well this year, it still feels scary. i'm curious if this switch will work james, thank you for joining us. >> thank you

so while tech readjusts to rate cut expectations, my next guest has been pounding the table to not do fed rate cuts, saying the fed is putting fuel on the fire and long-term rates may go higher. look what's played out so, what is the message of the market here, rich? welcome. >> so, kelly, i think that we were in a period several months ago where the consensus was that the economy was weakening, some people thought we were on the verge of recession and i think the fed responded to that overall feeling and their own research showed that, as well however, the reality was, if the economy was pretty healthy and more importantly financial conditions had not tightened i think everybody forgets the central bank, the fed is the central bank key word is "bank. and the way they implement monetary policy is through the banking system they should be cutting interest

rates when the banking system is slowing down and, in some cases, even problems. that was not to be seen. credit conditions were so very, very generous, to say the least. >> should they then continue to cut rates from here or no? >> well, you know, should. the fed chair isn't calling me up, kelly, and asking my opinion, nor should he so i don't think what they should do is important what are they going to do? i think they are going to continue to cut rates, probably not as fast as everybody anticipated several months ago the important thing to remember, they are cutting rates into accelerated profit cycle that is very rare. normally they would be hiking rates into an accelerated profit cycle. why? because profits drive employment, cap ex investment, and so the economy -- you get the multiprior effects from the corporate sector to stimulate the economy. this time you're going to get

that, plus you'll have the fed cutting rates, which i don't think it gets much better than that for the economy >> so i know you guys have been talking about this bias toward small cap. so it's funny, because you've been dead right about what's happening with the markets overall. but is small caps an area where you feel maximum confidence? >> absolutely. if you believe that the fed is going to continue to cut rates and the profitability is going to continue to rev up, you want companies that have immense operating leverage in other words, deep cyclicality. things like energy, materials, industrials. mid cap and small cap companies almost my definition are more cyclical than larger cap companies which tend to be more stable >> but the problem i wonder about with that, when the russell 2,000 made no money for three years because of high interest rates, now you have high interest rates again. it would be one thing to own them if you like the cycle, but

another thing if they're going to be dealing with expensive borrowing costs. >> absolutely. kelly, what you're referring to is the ever-present argument about financial leverage versus operating leverage that happens in every cycle, right? why do cyclicals outperform when interest rates are going up? that is traditionally what is going to happen, if the nominal economy is accelerating, peld expect rates to go up. but cyclicals are more sensitive. so you always had this tug of war between the financial leverage, and the operating leverage which helps them because the nominal economy is getting stronger history says the operating leverage wins. >> let's hope so, because these are higher levels than we have had for some time. i wonder about private equity and all these areas where we thought we would get relief. do you have any other tactical plays in the s&p 500, names,

sectors and the like, that, given what you think is likely to play out for the next few months, which is they keep cutting, markets keep partying, and hopefully the expansion keeps doing well, where else does that point you to >> kelly, you look at asset location, your opportunities are pretty limited right now the fixed income markets have been sniff thing out credit spreads are very narrow that's one of those things the fed seems to have ignored, so the credit markets have been telling you that corporate cash flows are going to be stronger than people thought. so i think you're now limited to the equity market. in our portfolios, we would rather get that cyclical side of the economy through the equity market than junk bonds or lower quality credits or something like that. so that's why we're overweight these sectors. i think it's difficult to say we should look at other asset classes or things like that, because there is so much liquidity. financial conditions have been

very beneficial. so the opportunity outside of tradition alec whichties like small caps is limited. >> some people are saying you could tiptoe in and buy bonds here, it sounds like you don't agree with that. we're at 4.2% on the ten-year. how high could it go >> i don't have a decimal point forecast for you, kelly, but i think it will be higher than people expect, which i think is all that matters as an investor. people should think of this as a call option and have the of/under if you will, since it's football season. we're betting the over on interest rates and inflation here simply because we believe the nominal economy is going to be stronger than people think right now, with profits revving up and the fed cutting rates, we think that's a good position to be in. >> i don't know how to phrase this, but higher than 5% >> i don't know. you know, i mean, like, i -- i love people that come on your show and they go, 5.8% or

something like that. i love the precision i'm admitting that i don't have that kind of knowledge but i will tell you that, you know, if you're going to err, you should say 5% instead of 3%. that's probably a better bet to make >> we don't have the luxury as we did in the early 2000s to have a 5.5% ten-year obviously, i don't know what the average weighted duration is of the treasury portfolio if we're already paying -- we had a $1.8 trillion deficit, paid $900 billion in interest costs with rates around where they are, more than medicare and more than national defense and you're telling me interest rates are going higher potentially, what does that mean? >> the reason i'm arguing that is because the nominal economy is going to be stronger than people think >> sure, sure. >> remember, debt to gdp and interest payments to gdp are the way you have to scale this

stuff. so if the nominal economy is getting stronger, debt-to-gdp might come down. interest might come down, as well i'm not a big enough fiscal expert to tell you at what levels or things like that, but the numerator i'm not a big fan of in the debt-to-gdp story, but people tergt about the gdp part and gdp is probably going to turn out to be stronger than people think >> i've seen the numbers, the jackson hole symposium last august, they had some great paper. i don't remember feeling very relieved how strong growth had to be. but i know you and ed and others are optimistic that we're going to muddle through and figure it out. >> kelly, there's this notion that all these debt problems are new, and it's like we're on the verge of falling into some apocalyptic abyss. i don't think that's quite

accurate there have been times in the past where the united states is in -- if you look at lbj and nixon, ford, even carter, you will see the debt-to-gdp went down because inflation went up and so, you know, although we can make fun of it being as kind of a chicken's way out, it's not the first time the country has done that. >> we were talking about this earlier this week, why you have to own gold and bitcoin, real assets >> i'm not sure bitcoin would qualify as a real asset, but that's okay. i think productive real assets is the adjective i would put on top of that. >> i gouess the final question is, we talked to some of the experts in d.c. about what's going to happen with the election and how much that plays into it. it seems like we're going to have to let the personal tax

cuts expire. i don't know if that matters to you. you fast forward a year or two from now, we're back to the state of things circa 2017 >> think about -- i think we'll all make the guess, whether you're on the left or right. there's probably going to be more stimulative policies coming down the road. so we have profits revving up, the fed cutting rates, and now we may have more stimulative fiscal policy on top of that that will be a stronger economy than people think. >> rich, we listen to you. you know what you're talking about. thank you for joining us today >> thank you for saying that thank you. >> listen, just call it as we see it coming up, southwest airlines is looking to turn the page following a four-month fight with elliott management. we'll tell you the terms of the deal and the implications of the stock which is selling off today. and mortgage rates have risen

830 basis points since the fed cut rates last month what does this mean for the homebuilders we'll ask steven kim, next >> this is "the exchange" on krfx nbc ♪♪ [inner monologue] this is going to sound crazy. but i know these attack vectors.

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began to drop. that's history, we think diana, how much of a spur was it >> new home sales in september rose just over 4% from august to the highest september figures since 2006, if you take out 2020, which is the covid year anomaly. this number is based on signed contracts, so people out shopping during the month and take a look at rates the average on the 30-year fixed started september at 6.4%, dropped to 6.11%, the lowest level in over a year, but right around when the fed cut, rates started to rise again. so buyers may have been in the lower rate mindset, not to mention the builders had been aggressively downing rates and adding other incentives. pulte noted pressure on its margins due to those continued incentives that said, the medium price of a new home in september didn't move at all from a year ago, so it's skewed to what's selling. builders have been shifting to smaller, more affordable homes

supply is coming down, so six is considered balance yesterday, we got the number of existing home sales in september, and it was down based on closings. so contracts signed two years before and redfin said, signed contracts in september on older homes saw the biggest gabe in three years. so that matches what we're seeing with the new home sales >> so imagine if we did get some relief on that front our next guest retains his outperform rating on every big name across the sector let's bring in steven kim. you have been bullish, and does the run continue, even for pult snervegs >> i think over the next six months to a year the builders look good. i think the october data we're going to get from the industry is going to be softer than what we saw in september. rates matter, and certainly i

think the election matters this year there's some debate whether elections generally matter this one may be a bit different. i think this matters more. the data we're getting from the builders suggests while traffic is still good, the buyers are hesitant to pull the trigger so we think they're hovering around we think it will set up for a spring selling season, because you're seeing demand getting pent up, but i wouldn't be holding your breath for some strong housing numbers in october, november and maybe december might be getting better but those are low-quality numbers at that period of time that being said, the builders are cheap. they're pricing in a lot of negativity that's been a big part of our call and their fundamentals, while they're decelerating, they're still at a very strong level and cash flow, a new metric for this group versus other decades, is extremely strong. i think that's going to keep a bottom under this group close to where we are, and set yourself up well for a winner trading

rally into next year >> i think this all sounds very reasonable, but you are not pounding the table like you were a couple of years ago. that's my observation, not yours. this has been a rip roaring run, but there's a lot of things going on why did you think this election will matter, actually? >> well, you know, a house is like the first thing you don't buy when you get nervous about your -- really about everything that is around you that you can't control. when you start worrying about your job, for example, houses are probably the first thing you put off. i think that right now, you have buyers that are very distracted and very concerned that causes people to hesitate do they really want to be buying ahead of what could be a disruptive period? i think that's what's going on right now. plus, you just had the rates chop pop up on you, so people are saying maybe if i wait a little bit, they'll come back down >> you also point out that agents are having a tough time figuring out what to do in this

new world. what is happening out there in terms of the experience that -- you know, the home buyer, you have to feel for them. there's known vno inventory is that adding to some of the confusion out there? >> you know, i think it's different. i think that things are changing, and i don't think the realtor community actually realizes it yet. many agents do, but many agents don't. i still think many buyers agents, for example, are calling around to the stellar agent saying how much is my commission they have it backwards we're going into a world where buyers agents and buyers are going to be saying, we would like the seller to pay this amount, and we're going to pay another amount for the home. the more the buyer agent asks for or makes, the worse the buyer's bid looks to the seller. because a seller only cares about what they net. so that is a change that's

coming i don't think that the agent community at large really understands that yet, and i think that once the doj starts getting more aggressive, i think you'll see agent commissions come down far more than you have and i also would say that you're going to see some disruption, and i think maybe a lack of trust on the part of buyers and their agents so i think you'll see more buyers try to go it alone. >> wow that's kind of what we thought might happen so you're sticking with the buyer across the group final word >> yeah, remember, 6 to 12 months you'll see stocks ebb and flow we've seen this each of the last two fourth quarters. the stocks faced a rise in race and took a breather. then you got into the first quarter and you saw very strong performance. we think a similar pattern could play out this year >> thank you as always for your time coming up, we're 12 days away from the election, and it's virtually a dead heat. but the battle ground states are

paymenting a different picture than the national one. we'll give you those results a and what they could mean for the outcome, next. answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's your free, just for calling the number on your screen. and when you call, a knowledgeable, licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the call is free. and there's no obligation. you see, medicare covers only about 80% of your part b medical expenses. the rest is up to you. that's why so many people purchase medicare supplement insurance plans like those offered by humana. they're designed to help you save money and pay some of the costs medicare doesn't. depending on the medicare supplement plan you select, you could have no deductibles or copayments for doctor visits,

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from a company like humana just might be the answer. welcome back to "the exchange."

i'm pippa stevens with your cnbc news update. the los angeles county prosecutor is set to ask for the menendez brothers to be resentenced according to "the new york times." it could lead to the brothers being released they're currently serving life without parole for killing their parents in 1989. the d.a. is expected to announce his decision at 4:30 eastern the white house is imposing stricter standards on lead-based paint in homes and child care facilities built in 1978 or earlier. it will reduce exposure to up to 1.8 million people per year, including 316,000 children under the age of 6 the hallmark channel is being accused of ageism. a 79-year-old casting director says she was pushed out for being too old. they also used the top programming executive saying stars were "too old talent who needed to be replaced.

hallmark denied the allegations, saying they have a home at hallmark kelly? >> pippa, thank you very much. less than two weeks to go to the election, and the -- steve liesman has the latest survey. >> this is a special edition of the "cnbc all-america economic survey." we zero in on the average voter in the seven battle ground states the top lines look the same, it's a dead heat, plus two for trump. but we get there in different ways one example here, nationally, who is best for the middle class is one of the most important issues 82%. more important in the seven battleground states. watch how the viewer that says this, plus 5 for trump nationally while the top line numbers are similar, to the extent they differ, they seem to favor

harris in terms of the number of groups where she's doing a little better. not necessarily, however, in the total number of voters so you'll see that at the end. take a look at the next slide. men plus 50. nationally, trump is plus ten, but only plus four in the battlegrounds. trump claws back some of what he misses over here with women plus 50 harris is plus eight nationally, but it's a tie in the seven battlegrounds. voters of color, ayersharris do little better in the battle grounds, and persuade able voters, harris doing a little better with persuadable voters trump, however, in front a couple other categories, which are interesting. we know that harris has been out there trying to reduce the negatives or reduce the counties where she's going to lose votes. she has had success in the battlegrounds. trump is plus 36 nationally.

only plus 23 in the battle grounds. but harris here, interesting, not doing as well with the $30,000 to $50,000 income households where trump is plus eight. it all adds up to a tie, but with some important differences. take a look at the head-to-head here, kelly. 46-48 nationally, and 47-48. but that's despite all those differences i just gave you. and what that tells you is the way that they're fighting inside these seven battleground states, spending hundreds of millions of dollars, one to counter the other. and ending up exactly there with that split >> i say in a world where every percentage point matters, so you're telling me harris is slighter tighter to trump in the battlegrounds than in the national poll. >> sorry, i need to direct you on this. a little higher, one percentage point, it's a 4% margin of error in the battle grounds, 3.1% on the national

>> it's a. >> caller: -- it's a coin flip >> right >> i look to the whisperer >> let me come around. >> i'm not hearing anything, but i look at the way that momentum media attention, it seems to be shifting towards a trump victory with the markets looking at what they would mean, and maybe not this is what it reminds me of, election night, 2016, the s&p sold off 1,000 points -- dow sold off 1,000 points. >> and then it came back >> not only do we not know what's going to happen, we don't know what the markets are going to do with this information, who is actually going to win, when we know, who gets to congress, and what that means for policy >> it could be days or weeks it's interesting what you say about the momentum when we look at the favorability ratings, they're trending in trump's favor. harris had a bump between our poll, the nbc poll, and now our poll again, she went like this

in terms of favorability trump like this, and still minus six. they're both negative, but harris is more negative now than trump. you saw that women 50 plus was really interesting >> i don't know if we can put that back up, but you did pick up on that, as well? >> we picked up trump is doing better in the battle grounds with women 50 plus than nationally in the battlegrounds there's a big gap, but here's the thing, trump is doing better with women than harris -- with men than harris is doing with women. so that, again, it negates itself it's like looking at an ocean that's flat, but underneath it are these massive currents shifting around. >> this is great, just to give people one more chance of what we're looking at there >> that's a big group. but look, she's doing somewhat better with voters of color. and that persuadable voter

thing, that's an interesting question that group, by the way, is more republican, that persuadable voter group. they're independents, but also, there's 32% that are republicans. they would tend to come home, but it's interesting that trump has not quite closed the deal with them. >> fair enough steve, as always, thanks in the final stretch still ahead, southwest striking a deal with activist investor elliott management. [ laughter ] it's the biggest board change sense the hedge fund has ever driven in a u.s. fight so is there clear skies ahead? if so, why are southwest shares down 5.5%? ken squire joins us next with his take and the names he's watching for the next heavyweight battle between corporate board and activist investor e men of means with their silver spoons. what will become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash.

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welcome back shares of southwest are down more than 6%, despite an earnings beat and deal with elliott management six new directors have been appointed to the board, and gary kelly's retirement has been accelerated, he'll step down at

the end of the month ceo bob jordan gets to stay in his role, though >> just getting this behind us and settling is a really good deal we have a terrific plan, we unveiled a transformational plan a couple of weeks ago, and all eyes forward we can focus on executing that for the good of our shareholders >> while jordan may be breathing a sigh of relief, my next guest says he's not out of the woods yet. join us is ken squire. what gives here and what is the decline in the shares telling us >> hi, kelly i wouldn't read that much into the decline of the shares. maybe there are some event people hoping for a better outcome, and now, you know, that it's settled, they're out. but bob jordan, this is how -- this is how it's supposed to work elliott got -- they weren't going to do any better than this in the proxy fight this board was not going to terminate bob jordan so this -- we now have a board

that's going to have eight new directors on it from last year, and they're going to do their job and hold management accountable, oversee them, and the number one job for jordan is fire or hire a ceo over the next year, that's what they'll do so i think bob jordan can take a deep breath, but i would hold off on putting any large order for business >> why is that, and what is your advice to investors or potential investors in the shares? >> i think this is a great time to invest in the shares. you have elliott still a big owner. they pointed out to the board the performance of the company and what they think has to be done they got one of their people as the chairman of the finance committee, which is basically the operational view committee, and this is going to be a company that i believe is going to be run better over the next year or two. everybody would be happy to see

bob jordan create the value, but if they can't, the board will find somebody who can. >> how would you describe the pace of activist activity overall? there are some anomalies in this bull market. the ipo window has been very quiet. how would you describe the activist front, should we expect more activity to ramp up, and if so, where? >> activism is as robust as it's been in many years we're starting to see some type of rotation from growth to value, and activist value investors, and they're offering a very good opportunity. the universal proxy card that was -- that was the s.e.c. implemented a year and a half ago has been very good for activists, making a lot more settlements, giving activists more board seats it's basically anywhere. any company where they see something that's undervalued where they think they can create value and activists will show

up >> we just showed shares of pfizer they made the case that their science is not where it needs to be >> he made a great case at our conference you know, season, he started off by saying, rightfully so, that they deserve getting the world through the pandemic they came up with a vaccine. i remember back in 2020, when we were masked and doing social distance, where we said whoever can create a vaccine is going to be a gazillionaire, and they got $40 billion of excess cash flow, but that is now gone on acquisitions, and there's really no shareholder value to show for it at a time when the markets have been up and pharma stocks have been up >> right so they're looking at pfizer, they're looking at others, as well any final companies you would be

watching, ken? >> you know, jana just filed an interesting filing, which is another company that hasn't been doing well that might need some management change. those are the top of my list >> ken squire, appreciate your time for now >> thank you, kelly. coming up, there's at least one thing both presidential candidates can agree on, the u.s. needs to be the clear leader in ai we'll hear from openai's head of global policy on that, and why he believes infrastructure is destiny. at nt.th'sex

welcome back openai's new head of global affairs chris lahan laying out his vision what the government should do to keep ai on top. deidre bosa sat down with him. what did he say? >> i just want to make the point that this regulation is

happening a lot differently for this technology. sam altman from openai, you think he would have learned a lesson from the social media era. bring on the right people with policy experience, and there are few people that are positioned to do that more than chris lehane he came west working with local regulators and airbnb, then crypto, and now leading policy at openai, at a time when the industry and government are trying to get their arms around ai policy. he said the stakes in ai are higher than anything else that he's seen. the autocratic versus the democratic development of it >> china wants to be the dominant player in ai by 2030. vladamir putin, who i would typically never, ever quote, has said whoever wins ai wins the world. and so the stakes here are enormous and for the u.s., which is

currently leading, but that lead is not guaranteed, but for the u.s., to continue to lead in ai, and therefore help ensure it's built with democratic values, democratic principles, drives democratic benefits. >> now, we still don't have specifics on either presidential candidates' policies, chris le hane and other executives in silicon valley are going to be continuing and playing whatever roles in the ai regulation that is shaped or not shaped. these are the names to watch, jay carney who went from the obama white house to airbnb and lisa jackson from apple, and the name tops screen are the names that will be head of openai, and chris lehane is going to be on my apple podcast. >> and he said, just know that we are not open for business, but vital for national security,

and we are significant in that way. >> again, you can go to listen to whole podcast with deirdre bosa in tech check podcast. and goldman is bullish on the boston beer selzer. we will have the trades on all three, including digital reality and skefrps. sketchers.

♪♪ [inner monologue] this is going to sound crazy. but i know these attack vectors. oh, had a little upgrade have we? ♪♪ okay, so that's how you want to play. ♪♪

>> i have always considered myself pretty ambitious, and when i

welcome back. let's get the action and the story ahead of the tree with realty trade and sketchers and boston seltzer. and it is a grab bag, and let's start with the realty trade. and it started with a top high of 52, and goldman liked the hyperscaler, and we have some strong results as well. so what do you do with this stock? >> it is a buy for me. it is a $200 stock, and they have so many secular tailwinds helping them out. they have a big backlog of a

record-breaking of 500 million backlog last year, and we expect similar if not bigger backlog, and they closed a lease in northern virginia, and europe, and plus they get helped by the lower rates and energy cost. so if you want a pure lead digital play, go with realty play. >> yes, we have seen that increase, and it is crazy. more of a loser, boston beer over 20% over the last year, and they had seltzer brands, but truly, it is softness with the twisted tea as well. what do you do here? >> i am going to sell it here, and i see a retest at .270. and the beer shifting group they are resisting shift is the alpha and gen z is only 15% to 20% of them drink alcohol at this point. and the secular in the u.s. are

not hipster enough for the craft beer, but too pick up, and not here nov to love. and truly, it is struggling, and for me, it is a sell. especially with a nice little bump, and take it to love. >> what could bring them back, and i would go if i were on that marketing team, is there a catchy new theme on tiktok >> well, they are trying they are doing a hard mountain dew, and they are trying, and they need a tiktok influencer for hard mountain dew for sure. >> you see, i always learn something. ending with sketchers which is up 26% this year, and however, on a general down trend after the ceo saw a down trend in china, and even as nike is trying to turn around and adidas and aun turning around tonight.

>> i see it as a plus from the shoes, and 20% from vietnam and china, and they ri expected sgrirnlgt. >> i don't mind the level, by i think that it is too risky to go back in, and saying all of the backlog, and the supply chain problems, and they had problems in secular trial, and ti have clea clear, and so i would hold it here and see what is under the hood. >> i love the slip-onnings, and my kids love them, and i love it, too, because you don't have to tie the shoes. and you don't have to bend over. >> hey, kelly, you can make

sketchers cool again. >> they are without our feet. dom chu is going to join us the next hour, and we have a power tourer off the sect. >> now the sflcounter for small businesses. (intercom) t minus 10... (janet) so much space! that open kitchen!

(tanya) ...definitely the one! (ethan) but how can you sell your house when we're stuck on a space station for months???!!! (brian) opendoor gives you the flexibility to sell and buy on your timeline. (janet) nice! (intercom) flightdeck, see you at the house warming.

♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. welcome to "power lunch" on this fine thursday afternoon. alongside kell