(♪♪) (♪♪) (♪♪) (♪♪) (♪♪) ♪ hi, everybody. welcome to "power lunch. i'm tyler mathsen. the dow on pace for its fifth straight losing day since the beginning of september that's about the last time it rained here in new york, but the nasdaq hitting a new record high today ahead of reports from the magnificent seven next week. chip stocks seem helping to lead the way.

>> and share holdings losing nearly half their value after a judge blocked their merger with tapestry the ftcarguing the merger coul decrease competition, and we are seeing stocks really respond to this we have the ftc official coming on >> tapestry heavily here, a deal that may not get done. another ftc action we're watching, a new click to cancel rule consumers love the idea of an easier way to cancel subscriptions. who knows how many we have several companies including comcast, the parent of this network, are suing to block that rule the ftc wants to make it easier for people right there with a button on the page to cancel a subscription that you don't want anymore, and obviously the businesses that have so much tied up in subscription revenue -- >> oh yeah >> they may not really want to make it that >> especially when companies are relying on subscriptions as the model they're using. >> their revenue stream. less than two weeks away

we start with an alarming report involving elon musk and russian president vladimir putin "the wall street journal" reported that musk has been having secret conversations with putin since late 2022. "the journal" says the discussions have been confirmed by several former and current european and russian officials according to nbc in a press briefing today, putin's press secretary denied "the wall street journal" report saying putin only had one contact with musk before 2022 for more on this, let's bring in bill browder, ceo of hermitage capital management, and jeff sonfeld, is the senior leadership at school of yale why is it dangerous for elon musk to be talking to --

maintaining contacts with vladimir putin >> first and foremost, these contacts took place after the war started. so we have a -- an illegal invasion of a neighboring country by russia, but putin the world has condemned it, and then you have a person who's the richest man in the world, a person who has -- owns the major media outlet, which is x or twitter as most people call it, and a person who's potentially going to play a major role in the u.s. government going forward is trump is elected president who has had secret conversations with this person who we all consider to be a dictator and a criminal, and so it's -- it's quite worrying from my standpoint having -- >> also jeff sonnenfeld, a business person who is involved one way or another in national security ventures such as spacex and starlink, both of which have national security implications here in the u.s.

>> yes it's a great risk, and of course, it's an honor to join you and seema, of course, tyler, but being on with bill browder, i don't know anybody more courageous that we ever have on cnbc's air, and it is -- i won't say it's a joy to be with him, but it's an honor to be with him on this topic. if i would add to his point is he knows as well, if not better than almost anyone, just who vladimir putin is too. this is just not another hostile person this is -- it is not overstated. to say it truly is the adolf hitter will of the modern world. just this week alone we saw the amazing culmination of him at the hub of what george bush called in 1992, the axis of evil there he was, sitting with all these hostile parties at the -- both at the bricks conference, but the missiles he's getting, the rockets that are coming in

from china that he is supporting, the aviation support that he's getting, controlled equipment, that he's at the center of bringing that in, that putin has asked musk to do favors for china to not let taiwan connect to starlink that's really troubling, and as you mention, the business angle on this, and of course, he has 10,000 north korean troops in russia being trained to go i ukraine, and he's training hamas in syria and the secretary of defense warned us about this, that there is a conspiracy here president bush was right, and now for musk to be dallying with that is alarming he has a history of 22 years of working with putin as we know from walter isaacson's great book, but the intensification that bill browder reminds us about since the invasion is alarming you have national security in the hands of a private business person that's what scares us.

a $2 billion contract to starlink, you know, to spacex to run starlink. >> you heard jeff there calling it alarming and potentially providing favors as well also take into account president trump who if re-elected has suggested he would bring elon musk into the u.s. government. your reaction there? >> i find the whole thing scary and distasteful. it used to be that republicans were tough on russia, and all of a sudden, we have this version of the republican party that is friendly with russia, and donald trump has made all sorts of overtures toward putin and one of his biggest supporters out on the campaign trail, offering people money to register to vote has had similar types of relationships with putin it is very troubling for me, somebody who spent my entire life trying to do whatever i can to contain putin, including freezing assets, confiscating

russian assets and doing whatever is possible so that putin doesn't succeed. i don't like the see putin gaining any power, and the fact he's rubbing shoulders with potentially if trump wins, the most powerful man in the free world, and the richest man in the free world is a bad start for me. >> we'll get your reaction here. as worrisome to me as the idea that elon musk is connecting one way or another on a regular basis with putin, is he was able to assemble in russia this week, some of the leaders of the world's most populist countries including prime minister modi of india, xi jinping, leaders of the uae, and saudi arabia was at the table or at the meeting, at the periphery of it, and the secretary general of the united nations. this is putin sending a big -- to me -- middle finger to the west and saying, you think you

got me isolated? you better think again, suckers. >> yeah. it's absolutely appalling, particularly the general secretary of the united nations, and putin is an indicted war criminal he's been indicted by the international criminal court, and to have the leader -- the head of the united nations going there and gladhanding, shaking and hugging and posing for pictures, it really is a major, major -- as you say, a middle finger to the rest of the world, and i'm kind of perplexed where we don't use our leverage. the g7, the most powerful economic players in the world, to make sure that that kind of stuff isn't tolerated. >> yeah. jeff >> we have a lot of leverage which we could use. >> to that point, to bill's very excellent point there, why aren't we coming back at them and trying to impose some kind of standard on these countries

that are going over there and making nice with vladimir putin? >> well, you know, we are opposing sanctions the sanctions are reasonably effective. they could be enforced a little bit better we have some mid-level players in our treasury department that have not enforced them frankly as much as they could have we have some g7 partners that are worried about upsetting some greek shipping magnets in terms of carrying some of the fuels and things, but basically the sanctions that have been quite effective on controlled substances, on chips, on a lot of critical parts, and the withdrawal of the 1,200 major companies as you know, that we had a lot to do with encouraging here, pulling out of russia, have had a devastating economic impact on russia their economy is down anywhere from 60% to 99%. nobody on the planet believes russia's numbers except the imf. we don't know what's going on

there, but we have actually recorded the imf's own chief economist saying they have no visibility all the national income statistics basically have been suppressed by putin since the second quarter of q2 so he invents a gdp each day his economy is hemorrhaging. it's a stalemate he's going to take kyiv in three to five days, he said. three to five days that was back in, you know, february of 2022 he's stalemated economically, tyler. >> why must he be so interested in maintaining a close relationship with russia their economy is not doing well. they're involved in this geopolitical tiff right now with ukraine, and why would elon musk maintain a relationship with russia right now you look at starlink, and spacex >> he likes the attention as we know, from isaacson's book or just from watching him each day. he likes -- he's a flflambuoyan

and scary person it's not the leaf throwers, but the mercurial grandiose side, he gets the flattery from putin he likes and with all the covers pulled out, virtually no company other than perhaps mcdonald's, that perhaps 10% of their revenue is coming from russia, main by about 2%, this is a company as i just had a call, the number of economists that are russian refugees this morning. russia went make it by the spring of the second quarter of 2025 unless not to make this partisan, unless president trump is elected because they've run out of running room. they're out of military supplies they -- so musk is being flattered and being courted by putin, and he's falling for it just the way sadly like president trump sadly are being pulled into the fold >> jeff uses a very courtly word, mercurial. i wonder if -- it's a synonym for reckless on the part of elon musk

what he's doing, is it reckless and potentially damaging i acknowledge they have had a crippling effect on the russian economy, but the optics of this gathering in russia earlier this week, is -- it's sort of beyond the reach of sanctions >> he wins on the propaganda that's the only thing he's really good at he's losing militarily he's stalemated. he was losing diplomatically, but on the proppropaganda, he's exceptional. >> right >> frarnkly, it's no coincidenc that october 7th happened the way it did with his involvement, with iran, the houthis, hamas, and hezbollah. this is a lever that he helped sgh >> bill, tie it all off there. react to my last question and also what jeff just said. >> putin has been very, very successful at ruling by symbolism. he always -- he finds ways of as

jeff said, the economy is not doing well, but he can -- he can do these things like gather all these individuals in russia even though he's an indicted war criminal, even though, you know, he's totally ostracized in the rest he can find ways of using leverage either in some cases, people who are equally -- equally horrendous like the iranians or the north koreans, or he can use some basic bribery for smaller african countries and he gets enough of these people together, and then it creates this impression that -- that yeah. he's got -- he's got something to offer to the rest of the world, and yeah. he's -- he's going to fine, and yeah we don't need to think that he's doing so badly which his whole purpose of this is to -- is to create an impression that everything is going fine, that he's an accepted leader. the economy's fine none of it is true, but it sure -- that imagery sure works

well >> yeah. it doesn't matter whether it's true or not if you can create the image that everything is fine, and make people believe the sorcery behind the image that you're trying to create gentlemen, we got to leave it there. fascinating conversation bill browder and jeff sonnenfeld we appreciate your time. we have breaking news on cryptocurrency company tether. >> "the wall street journal" just popped this story over the past couple of minutes saying that federal prosecutors in manhattan are investigating the cryptocurrency company tether for potential violations of anti-money laundering and u.s. sanctions rules. "the wall street journal" in the past few minutes also reporting that the treasury department is considering sanctions against tether because of its widespread use of tether by criminals on the internet obviously sanctions against tether would prevent u.s. persons from doing business with the company. so that is a concern

particularly a concern pot potentially here for cantor fitzgerald who has a business partnership. we have a statement from the company in "the wall street journal" reporting they say, to suggest tether is involved in sidestepping sanctions is outrageous. we work actively with u.s. and international law enforcement to combat illicit activity as we've publicly demonstrated many times, and guys, "the wall street journal" offering some context which is that this investigation in the manhattan u.s. attorney's office, the prosecutor's office has been going on for some time now, possibly several years so not clear how soon they might get to a resolution of that investigation, but that story popping within about the past 15 minutes back over to you. >> thank you so much coming up, the dow on pace for five straight down days, the nasdaq however, is on a tear we've got amazon, apple, alphabet, meta, some big chip players on deck to report next week we will lay out the trade and what to expect next.

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welcome back to "power lunch. the nasdaq riling to an all-time high today with megacap tech stocks leading the way it is the first time the index hit an intraday record since mid-july it comes ahead of the busy slate of tech earnings with five of the seven stocks expected to report quarterly results joining us to discuss is mike bailey, and patrick moorehead from moore insights and strategy patrick, you have been on the conference circuit here, oversee s -- overseas, and i know you have been watching what's happening on the ground. what stand out to you as we g get into earnings season >> the biggest thing that stands out and this shouldn't come as a surprise is a.i. i have been on cnbc multiple times saying the gravy train of a.i. infrastructure continues. the nvidias, the ands, the

bro bro broadcomms they will continue there are even benefits we're t starting to see even with service like service now i think the big read going in, is what are these companies doing with a.i.? are they incrementally taking advantage of these opportunities? >> well, the conversations that you have had, you know, those concerns that hyperscalers are starting to cut back on spending because there are still some questions about the return of investment on artificial intelligence do you think those concerns have gone away? >> so there was a lot of discussions, but you didn't have institutional investors pounding their fists on the table, and microsofts, the metas, the googles. they just kept investing, and i expect when we see next week with google and microsoft and amazon and meta you're going to see pedal to the metal you're not going to see capx

reductions i think each successive quarterly earnings that we get down the street, there will be a lot of questions, and there should be questions, and in 18 months, if we don't start seeing the downstream impacts, it could get ugly. >> mike, we look at valuations and with many of these stocks trading close to their all-time concerns, are you start ing to get concerns about valuations? >> the short answer is it depends. you got five of the seven reporting next week. some of them are starting to get expensive. apple is tartingstarting to crep there. meta, expectations are starting to rise. we have a higher bar that these companies need to clear in terms of getting investors excite. there are a couple that are frankly looking relatively reasonable, if not, inexpensive. google or alphabet is trading at a significant count. amazon, and that company just generates massive earnings growth you're seeing that multiple -- that valuation really continue

to be well below average so sort of a nice spectrum out there of names investing, and plenty of growth i think you can pick names that are trading a little bit below average or you can go for some of the names and sentiment >> mike, google is one of your choices. explain why you like it. as is united health and one other. i can't remember go ahead talk to me about google. >> sure. so we do like google i think getting into this idea of new markets, hitting all-time highs, we'll see it again and again. i think it is important to make sure you've got some portfolio that's trading a nice valuation. what if there's a problem? do you own stocks that are baking in some negative sentiments google again, a very nice growth this year, and probably next year, and in some ways, it's gro growing as fast as meta and we like owning stocks like this other ones we're looking at outside of tech to make sure you're diversified, united health generally we have nice growth long-term.

it's been beaten up this year so there's another opportunity to buy that one at a discount likely to go back to mid-teens earnings growth. pretty compelling. the last one within tech, is rover. it's not on the front page typically. patrick was mentioning a.i just questioning everything, and tech is doing nicely however, if you want to own something outside of a.i., rope everope is interesting they buy other software companies. doing pretty well. valuation has gotten back to much more reasonable range something interesting. >> patrick, we also hear from intel next week. i know you have been less confident of a qualcom area. what do you think the fate is of intel as we try to understand how this turnaround actually takes place? >> so many investors have written off intel, and that's a -- that's a huge mistake, and listen i totally understand it. i have been in and around intel

for nearly 35 years. they're trading below book value with a lot of tangible assets, not good will. and i do believe that they're on track with 18. they have challenges they're losing cpu, market share to amd in both data center and client they came out with a -- what i would say, good enough volley of announcements. to get them at least a slightly more competitive, and they miss the cpu market they made other investments and they invested in accelerators and high-performance computing gpus, and they're on track in '25 to come out with their first a.i.gpu. probably not going to swing everybody around the room, but i believe they'll be a lot more competitive in '26 the year to evaluate intel is going to be '25, beginning of

'26. i understand that, you know, investors may not have that potential, but those people who are looking for long to go, i would do the double click on intel. >> do you think that arm holdings dispute results in going to trial >> i don't think this goes to trial. even though both companies have the highest ratio of lawyers to employees of any companies that i'm aware of they both just want this to go away i've talked to executives at both companies they both believe that they have the best case going of course. they would say this. i see points of view from both sides. the two companies need to watch this because in a qualcomm, and on the other hand, qualcomm, it's not like they're going to go to city six or something like that, and in the meantime,

qualcomm customers, you know, are making clear commentary that they would like to see this get resolved they don't like the risk qualcomm has been giving assurances that it's not trial comes up supposedly december 16th i don't think this goes that far. i just think it's posture at this point >> we'll see sharp exchange of words by both sides. patrick moorhead, and michael bailey, thank you so much for your time. after a quick break, we're going to dive deeper into the tech earnings, taking a look at one potential way to hedge apple. a market navigator with some very sophisticated trades on apple coming up.

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welcome back to "power lunch. a quick check on markets here with the dow currently down 210 points, but as we have been telling you, the nasdaq new highs up a quarter of 1% dom chu, what is in today's navigator? we'll talk about the nasdaq and going into the internals, the biggest influence, which is apple. the biggest in the stock index a big week ahead for apple they're launching intelligence a.i. products, releasing new

iphone sales data, its latest earnings report is up. its stock is up over the last six months or so, and over the last year. our next guest has thoughts on how to protect the gains if you are along that stock and worried. joining us is chief stat rategit at open interest dot pro some argue this is the most important report of the earnings season by its weight and nvidia of course. take us through what you think is the downside scenario for apple and why you're looking to protect it. >> yeah. earlier guests wer talking about the fact that apple's valuation is heavy here. it's a price to sales basis. it's as high as it has ever been the last time we got up to valuations on an earnings basis was probably the tail end of 2021 not a great time to tail out of the stock, and of course, over the following year, with the

market more broadly. this isn't necessarily a real growth story i think the iphone 16 sales, which i think some had thought and originally even i had thought might represent a refr refreshed supercycle it's probably more like 3%-ish, and growth on the iphone sales it's spectacular business, but it's priced for growth that i don't think we're going to see. >> what exactly is the strategy then if you are along the stock, the simplest thing in the options market is to buy a put or downside insurance you're taking it a little bit more nuanced with how you put that insurance protection on what exactly is that >> yeah. that's right one of the reasons for this is that number one, it is of course, the most broadly held stock. it's for any closet indexers out there, they're going to continue to hold it so the stock doesn't tend to move very sharply on earnings. it tends to trend. you're probably looking on average, it moves somewhere in the 4% to 5% range

in fact, going back a decade, the worst case i actually saw was somewhere between 8% and 9% to the downside. so buying a put versus an outlay of premium, you need the stock to fall precipitously before that insurance really kicks in so what i was looking at is something called a put spread collar where you buy the money, and then sell out of it. i was looking at the 215s. bear in mind, we're looking at 2% to 4% moves in the worst case when you do that trade ads a package against your long stock, you're not laying out any premiums so you get participation up to 240. bear in mind, you know, the all-time highs are just under 238. so selling the upside is basically giving away any upside beyond its all-time highs, and it gives you, you know, modest protection in the event that you get 4% or 5% or so. >> thank you have a nice weekend, sir we'll see you soon >> thank you i'm just curious how popular

these type of strategies are in the run up to earnings also taking into account apple's 35% run this year. >> it's a big move for those people who don't want to pay a lot for that insurance so buying a put protection piece outright costs a lot of money, but by selling off some of the upside and downside on either end of it, it's a way to cheapen that protection. so it's if you were already along the stock and looking to protect it at a certain level, you're giving away some of the upside and some of the downside profits. we'll see what happens >> good insight. thank you. >> you bet all righty after the break. ever had that moment where you check your credit card statement and realize you're paying for a subsc subscription you don't want? when you go to cancel, you find there are roadblocks and curtains and so fortprenngh evti you from doing what you want to do the ftc has taken notice, implementing a new rule for companies. we've got the details next

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♪ welcome back i'm kate rogers with your cnbc news update. moments ago in arizona, president biden addressed a u.s. policy that forcibly separated

generations of indigenous children from their families >> the federal government has never, never formally apologized for what happened until today. i formally apologize >> these children were sent to federally-backed boarding schools for more than 150 years for forced assimilation. biden called the apology long overdue. former abercrombie & fitch ceo will be in a courtroom to enter his plea in his federal sex trafficking and prostitution case prosecutors say the dozens of men were allegedly recruited from 2008 to 2015 to have sex with jeffries under false promises of modeling jobs for the company. his lawyer says he will plead not guilty and miami dolphins quarterback tua tagovailoa has been cleared to play sunday against the arizona cardinals after the dolphins say he passed the league's five-step concussion protocol. he has not played since he

suffered a concussion in week two of the season. it was at least his third in his professional career. tyler, back over to you. >> all right kate, thank you very much. well, the federal trade mission finalized its, quote, click to cancel rule last week, requiring media subscriptions to make it as easy to cancel as it is to sign up. the media industry has responded with the ncta internet and television association, suing the ftc along with two other groups, arguing that the ftc overstepped its authority, and failed to provide evidence of the cancellation problem the ncta is made up of multiple industry players including warner brothers, discovery, charter, and cnbc's parent company comcast. joining us now to discuss the rule and the response is douglas fairar he has ftc's director of public affairs. doug, welcome. good to have you with us as i understand it, these new rules apply to situations that entail what's known as a negative option. you'll have to -- correct me if

i'm wrong about that, and explain if you wouldn't mind, what a negative option kind of subscription is. >> yeah, absolutely. it applies to negative options which are basically when you sign up for a subscription and then you're not -- if you take no action, it will not be canceled, and, you know, this has become a huge problem across the economy. you know, we -- the rule is very simple it just says, if you -- it must be as easy to cancel your subscription as it is to sign up, and that's true with both digital subscriptions and also in-person, things like gym memberships, and the problem is really, really widespread because, you know, most american consumers have about 4 1/2 subscriptions each, and we know this grew a lot with covid the ftc takes a lot of consumer complaints, and in 2021, we had 40 complaints that are trying to cancel subscriptions and we're close to 70 this year. it doesn't just cost people money. i mean, this is an infuriating

thing to go through when you are being cycled through one telemarket phone call after another, or you have to jump through some outrageous hoop like sending a notarized letter to a gym in order for them to let you out of your scri subscription, but if you're forcing consumers to pay a fee to you against your will, you're going to have a big problem. >> this is not merely -- it doesn't merely apply to subscriptions that you might sign up for online it could be subscriptions that you sign up for in-person. >> that's absolutely right, and the rule is the same it has to be as easy to cancel as it is to sign up. >> does this mean in practice then, that if i sign up online for a subscription for apple news at $9.99 a month, and it goes on unless i -- unless i cancel, that there will have to be a clear tab on the welcome screen that says, cancel my subscription

how would it get applied >> well, the basic way it's applied is that consumers must know that the information they're receiving is true, clear, and easy to find. people have to know what they're agreeing to before they sign up. sellers have to be able to show that people knew what they were agreeing to before they sign up, and then yes there must be a way to cancel that is as easy. >> how does the ftc view the loss that says if this ruling would be unfair? >> well, we're not surprised we have been sued and we're ready to defend the rule in court. i think sozooming out, you see business lobbyists can click their heels together, and you can see chevron, and regulations go poof, but the truth is far from that. i mean, the ftc has never once brought a chevron case to court and we won't be using it to defend this challenge either we're a 110-year-old agency

operating under a very clear statute, and this click to cancel rule is a revision we started in 1973. we're revising a 50-year-old rule consumer protection rules like their clearly authorized by the ftc and i look forward to proving that in court. >> i want to get your thoughts on today's news. tap tapestry's $8.5 billion deal being blocked by the ftc how do you respond to tapestry the company says it faces competition from both lower and higher end-price brands and this merger would have been good for consumers and now you have companies within these two enterprises that see that they're now less financially stable because this deal may not go through >> we're delighted by the judge's decision, and they look skeptically on that argument as well, and we're not surprised. both of these companies talk frequently about the market for affordable luxury, which is how we defined it in our suit. they compete fiercely with one another. wall street investors use that

same market definition we were a little surprised that this lawsuit was met with such skepticism in markets. you know, the district court judge and the opinion repeated multiple times that, you know, whatever witnesses say on the stand, she's going to weigh that a little less heavily than what witnesses and business executives say prior to reviews starting, and in this case, they were very clear that they were aggressively competing against each other on price and for workers, and i think zooming out, you know, we were a little surprised about how the analysts reacted to this merger when we challenged it. companies who define the market in their own words, and then compete fiercely with one another, those are going to raise big flags if they seek to merge, and hopefully those flags would be raised in the board room before mergers of this nature are considered. >> both companies have filed an appeal we'll see how far the ftc goes to kill this deal.

thank you very much. and be sure to join cnbc delivering alpha's investor summit in new york city on november 13th investors and leaders will convene to provide insiders and analysis to help you deliver meaningful returns you can scan the qr code on your screen or visit cnbc.com/deliveringalpha. >> you see who's on that list there? ben affleck. >> ben affleck >> he's going to be here. >> producer, investor. >> investor. >> entertainment actor. >> husband of -- >> j. lo. >> some people >> many reasons to come. we'll be right back.

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after hit a three-month high early they are week. let's get to rick santelli in chicago for more on what we can expect in the market, this today and next week, rick. >> yeah. i'll tell you. there's a lot going on not only today, but next week we get our first look at gdp for the third quarter. we have jobs numbers coming out. it's going to be a huge week, but right now, we had this morning, some important data we saw university of michigan final read improve, nicely over mid-month reads. we saw everything improve on current conditions, expectations what you're looking at there is a chart of ten years, and the important part here is it has improved dramatically, but it's well below where it was pre-covid, and when we talk about hard landing, soft landing, no landing, we were between 90 and 100 pre-covid now how did they react for the week we're basically unchanged on the day and we're up 14 basis points

on 2s and 10s as they sit right now. it is a big move, and once again, second describe potentially why rates are up maybe there's improvement in the economy to some extent there's inflation expected after the election maybe inflation after weather events, but no matter how you slice it, it has been a one-way train since the fed cut 50 basis points tyler, back to you. >> mr. santelli, have a great weekend, sir big week of earnings coming up you probably know that five of the magnificent seven will report, but what about the other companies? our three stock lunch trader will give us some other names to watch next

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all right. time for "three stock lunch. we are trading names with earnings on deck here with our trades is anthony f fo -- from rockland trust. first up is merck. shares are down about 4% on the year t anthony, you say the stock looks cheap here and anything but

spooky >> it does, tyler. thanks for having me hopefully it's not a trick and more of a treat next week. the call on merck is pretty straightforward. it's a valuation call. the stock is trading at 11 times forward earnings, 8% free cash flow yield and a lot more free cash flow to come. the stock is too cheap i think the market's going to feel hopefully a little bit better about their -- product after this call. we met with the company pretty recently and felt better about the prospects. the stock is too cheap here for the franchise it is. >> up next is ecolab, the water treatment and systems company reporting results before the bell on tuesday. the stock is on a tear of nearly 30% in 2024, but down 3% in the past week. you say it's perhaps worth holding the shares for now >> yeah, absolutely. we've been fortunate to own this for clients for a long time. we really like the company they're well positioned in

essentially cleaning and sanitizing products for a wide array of industries. they had a little bit of a reset last quarter, so i think expectations are much better heading into this quarter. and they still have ample room for organic growth and margin improvement. we like this company going forward. >> let's stick with water and go to the water tech provider xylem. they report before the bell on thursday the stock having a strong year, up 13% i'd take it. if you said at the beginning of the year, you want to make 13%, i'd say yes on this one. what do you say on this one, xylem? >> this is a new position for us we're watching it really closely. as you said, they play in the water industry, which is a very solid industry they're well-positioned. they still have room for significant growth in organic growth but also through market improvement. and also their focus on simplifying the business

so, this one's a little bit more controversial. the stock is at its service not super cheap but cheaper than it has been historically. so, we're starting to like the risk/reward here we would encourage people to look at it and buy it on more weakness >> we appreciate it. have a great weekend >> thank you remember you can always hear us on our podcast. and be sure to follow and st "welunch" wherever you go we'll be right back. ness idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out? don't worry, we have at&t internet back-up. the next level network for small business. ♪♪ i sold a pillow! ♪♪ rising costs. selective coverage.

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its space business ceo kelly -- told phil lebeau earlier this week, the company would prefer, quote, doing less and better than doing more and not well let's listen >> we're going through a portfolio process right now to look at the overall portfolio and see what do we want to look like five years from now that may include streamlining certain things i haven't come to that conclusion yet i think our core business of commercial aircraft and core defense products will always stay with the boeing company but there's probably things that we can streamline and be more efficient. i would rather err on the side of doing less and doing it better than doing more and not doing it well. and i think there are cases we could do less and do better. >> boeing has their work -- either way they go here, they've got their work cut out for them. the next ten days are going to be very interesting. there is an election coming. >> oh, yes

>> and there are five of the seven magnificent seven reporting earnings next week i'm expecting a very busy, volatile week in the markets >> absolutely. we have five of the magnificent seven companies reporting. >> where do you got to be? watching cnbc. have a great weekend, everybody. "closing bell" begins right now. thank you very much. welcome to "closing bell." i'm scott walker live from the new york stock exchange on this friday a new record high for the nasdaq and just in time for megacap earnings next week we'll ask our experts what is at stake, including jeremy siegel the professor will be with us. in the meantime, the scorecard with 60 minutes to go in regulation looks like that. there's the record high for the nasdaq tech and come services by far the best sectors today elsewhere, tak