tv Power Lunch CNBC October 30, 2024 2:00pm-3:01pm EDT
2:00 pm
planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. ♪ good afternoon, everybody, welcome to "power lunch," alongside kelly evans, i'm tyler
2:01 pm
mathisen. i'm glad you could join us. there's big three es driving the economy -- the economy, election and let's start with the gdp coming in a bit lower, but adp priority payroll thought 233,000 new jobs created. that was double the estimates. it looks like the economy is holding in there very nicely. >> on the earnings front we have so many big names and mover, google is a big one, up 4%, helping to send the nasdaq. microsoft is coming after the bell. >> good reports from google, seemingly clicking on all cylinders, and a couple other big reports after the bell. on the election front, shares of trump media are lower today, but more than doubled this month. donald trump has made more on this than any other company he's ever been involved in, and who knows what will happen after the
2:02 pm
ele election. i guess it depends on who wins the election, but there's questions about who can invest? are there conflicts involved if he becomes the president? what will he do with the holdings if he becomes president? let's start with a mixed bag. gdp fell short by estimates a bit, but private job growth bea expectation, and pci manager is on deck tomorrow, followed by the jobs report on friday. what does this all this means? asis shaw is with goldman sachs, and mike santoli is orb senior commentator. >> asis, are you surprised the market has been had unrelenting upward course? >> i'm not surprised, because if you think back to 12 months ago
2:03 pm
we've had a 40% rally from 12 months ago, the world was a really scary place. you had positive correlation across bonds and stocks, right? so your stocks were going done, bonds were going down. investors were not happy. over that 12-month period, you've see a really in bonds, you've see the fed start to ease, you've seen the economy stabilize, and you had this kind of growth from ai that is just creating a tremendous amount of economic growth and value within the stock market. >> with the ai trade, mike santoli, has certainly been one of the animators. can it continue? >> obviously it can continue. the question is how much has the market already figured out? if it was really the first half of this year when that was dominating, consumes most of the oxygen in the market. if you go from let's say, july
2:04 pm
10th -- i happen to have the numbers on the top of my headsh that was that's of after a very benign report. we're still not back to it. some haval vastly outperformed, because you have a sense of the fed has clearance to ease a bit into a firm economy, earnings growth is broadening out. i think you can have one thing happy, s&p up 22%, trading in 22 times forward earnings, it's obviously not an inexpensive or really underexploited bull case anymore, but i think it's still intact. >> ashihs, the question is now if you were thought -- please tell me what the next 12 months will bring and the election outcome and all the rest. we always worry when optimism about the market is so high is the moment when things are going
2:05 pm
to unravel. >> i think you are going to see positive returns in equities from here on out, but i think it will come in a different way. as was just highlighted, you've seen a different market since july. july, august, september does feel like a very different environment where the market is broadening. one of the trades i think is interesting is what i like to call the power pivot, where you're seeing not ai stocks, but actually the stocks that benefit from ai, you know, whether it's utilities, industrials, other parts of the economy where investment needs to happen to facilitate this coming forward. that will propel else into the forward cycle. the other things that's fantastic to see, as the fed pulls its foot off the brakes, other parts of the economy that have been holding back because there just wasn't enough capacity to grow, they're able
2:06 pm
to take hold and generate returns for those companies. meanwhile, those companies have been leaning out during this time. >> what does mr. market want to see out of the the elect? does mr. market care in a long run whether it's a harris or trump victory? does mr. market care in the short term whether there is a definitive result or a period of challenge to the results? walk me through how i should think about the next few weeks, and ultimately whether the market truly cares whether harris wins or trump wins. >> i'll tell you the following, which is the number one thing the market wants to see when it comes to the election. it wants to be the election done, right? >> and not drag on. >> and not drag on. give me a result. >> what i've seen from every market purchaser, everyone is taking down risk.
2:07 pm
the market does not like binary events. it doesn't like to invest in that, but having said that, once we gets through the election, which we will. i'm very confident wield get through the election, then the period of time voight broadband what are monetary policies, and what are policies that sit across different sectors. i think in general there's policy convergence. it may seem strange to believe, through there's been policy convergence, with investment in the u.s., higher walls in the u.s. relative to imports, they may come in different forms, they may come from export restrigz. they may come from tariffs, but the magnitude and how rational they are relative to the price in the market is what will mart for returns. >> we were having a big debate about this next hour, this
2:08 pm
narrative would have pristine if it were not for interest rates. what do you do with that fact? >> i think you look to the forward. in january, it turns out, it's going to be january. people will have fresh money to put to work. they're underinvested by the nature of the large-cap rally. they're underinvested in small caps. the com bins of the fed starting to cut rates along with a rejuvenation of the secondary trades seris going to be benefil for small caps. meanwhile, the low quality small caps, spacs and other speculative plays, they have shrunk down as a percentage of the overall university. that's where an active manage can sort those out. >> four percent, you know, so 6 1/2 equivalent yield?
2:09 pm
not bad. >> one of the certainties, when you look at the u.s. deficit is, regardless of who is in power, your taxes are going to go up if you're a wealthy individual. so, going into this election, we have seen a big influx of issuers trying to issue before the election. >> exactly. >> this is the time i would, you know -- i would encourage everyone out there to go out and buy. >> what if you live in new jersey? am i suppose to do buy new jersey municipals? nothing to worry about? nothing to see? >> sure. >> mike santoli, close the discussion off. what does mr. market want to see out of the election? >> aside from getting past it, i'm persuaded by the idea that the market probabilistic says the most likely set of outconditions is red waive or harris win with his some gridlock, which is a statue quo type of outcome, in which case
2:10 pm
the market can make its peace with that policy set. in the near term, you've seen an aggressive overplaying of the aggressive trump tried, because that outcome would have a much more extreme or dramatic effect directly on some quantifiable trade. if i told you harris is going to lose, it's not as clean a trade as dyt or coal or, you know, something like that where you feel like you have a clear path. that being said, i think beyond a sort of final settlement of the election, you basically want nothing super extreme. i don't think what the market wants is genuinely mass deportations plus tariffs on day one. that would be more disruptive than is priced in right now. >> mike santoli and ashish sha,
2:11 pm
thank you. rick, should we talk liz trust? >> pardon? what was the last thing? >> uk bond yields and liz trust? is that a preview of what's to come? >> you read my mind. i wasn't sure if you said that. to me, today is a very, very important day. we'll get to why kelly asked in one second. first of all, tyler did a great summation. adp, strong, strong, strong. if you look at intraday of two-year, they're the ones arm locked with fed policy, we see rates went up, then a strong consumption, rates went up, less inflation, rates went down. what changed everything? let's pair that chart with a two-year good the in the u.s.
2:12 pm
with regard to liz trust, after the budget news came out, a tert came out, something else came out. they'll have to sure mo supply. that's been my manual ra for months and months. not only will the u.s. compete for investment dollars. we'll be competing with many other economies -- uk, china, and you see how the two-year in the uk popped in a reverse course with us. smart. if you open that up, all of a sudden that two-year gilt, maybe not sound like a lot, but it was on the way down not that many sessions ago. this underscores the down side of a globalization and debt-ridding world. we're asking questions about what happens after after the election. we'll have to find way to pay for servicing the debt.
2:13 pm
i don't see how these prices will alter much, i don't see how yields will go down dramatic, because of central banks issues, don't think the long end isn't paying very close attention. tyler, kellie, and kelly, you get an a-plus for the question of the day. >> and you're a tough grader, rick. >> it's just on my brain. as we say, you know, the reelection we'll get through, and the uk has been dealing with these problems for years, and we could by sorting these issues out for years as well. >> i think that would be the best news it would take years to sort it out. i believe the market may be more efficient in that sorting process. that makes me think of harry potter and the sorting hat. >> which house are we in? we'll break down alphabet's
2:14 pm
results last night, and what to expect from meta and amazon. and the trades on caterpillar on its weaker results. eli lilly down 8%, and carvana, as part of the "three stock lunch." "power lunch" will be right back. ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere. ♪♪ take the next step toward your future, by investing in the dow with dia. getting there starts here.
2:17 pm
its time for a deluxe three stock lunch. it's the thick of earnings season. let's get three names and victoria green is here with us, a cnbc contributor. victoria, welcome to you. let's start with caterpillar, shares off the worst level of the session. before we get your trade, let's bring in seema mody with all the details. >> kelly, this was significant
2:18 pm
the first tine of a year-over-year decline in four years. inventory levels remain too high, raising concerns that cat won't be able increase prices. barclays says it's a red flag for the bears. analysts blaming higher rates for the slowdown, but shares did bounce off the lows after the ceo said the company is building more capacity in engines for data centers, saying data centers relike on cater pell hearts for backup generators. that's a small, but growing opportunity for the industrials, including companies like 3m, and cummins with its strength in engines as well. as a broader structure story remains weak. we've seen -- the manufacture sector is still in contraction.
2:19 pm
>> seema, thank you. what do you do with the stock, victoria? >> i want to sit it out at this point. number one, this is a luge global company, only about 54% of their risen in sales in the u.s. china is a massive problem for them. they also saw in the middle east, africa and europe also slow. construction is their biggest segment. that's a bad miss for them. if you look at overall i think expectations are a bit too high. you can almost track the stimulus to where it is now and say, that almost tracks exactly when china announced their stimulus. if the stimulus isn't do what we think and china won't pick up
2:20 pm
the way we initially thought it might be, that could be a big black market for caterpillar. takes profits if you've been them and look for something less economically sensitive. eli lilly tumbling after it missed third quarter estimates. anjelica has the -- >> they're both missing estimates, what you'ring seeing is the uncertainly. >> this is not a function of supply, though. it's a function of thinks wholesalers and retailers having cap capacity, so yeah, we're just balancing all these parts. there is an examines supply, but we haven't been stimulating demand the way we originally
2:21 pm
planned. we're restarting here. >> and, so, what you're hearing him talk about is the dynamic where lilly has increased supply. they're saying that wholesalers had enough and they're working through that inventory instead of buys more, but that begs the question -- is it a supply or demand problem? >> david ricks say it's not either, but i don't think you're seeing people buying that and still wonder what is happening here. some things like direct-to-consumer advertising as well as looking at healthcare providers giving alps free medicine, but, again, a lot to pay attention to there, guys. >> thank you angelica. >> if it's a blip orship, and if it isn't, it's certainly a big one? >> for me, it's a blip. i don't think their ceo answered
2:22 pm
questions very well, but i think they'll come back. number one, they're getting some of the generic compounders off the market. and this could have a sleep apnea product approved. i think people were concerned if wet constraints, i need to keep more on hand, then suddenly they destocked as supply bake more really available. i don't see it as a demand issue, but yes, they need to advertise more, they need direct to consumer, compete with some of the easiest ways to get these semi-gluts. >> so buy the dip? >> buy the dip. carvana also reporting after
2:23 pm
the closing bell today. that stock is up 300% this year for the full story, we turn to phil. >> when carvana reports its results after the bell, three things that people will be looking at, really the metrics within the third quarter. the first is profit per vehicle. also, have they done a good job of limiting inventory? this has been their calling card over the last several quarters. essentially they're moving the vehicles quicker, when they guy them, turn them around andsh they're in the swede spot. used sales are increasing around the country. look at the ground from the first quarter to the second quarter, expected that the third quarter sales will stop 106,000 vehicle. as you look at carvana over the last year, the profit per vehicle, why is that so important? it's their metric, the metric to say, how much money are you
2:24 pm
making off the vehicle from your buying from somebody, turning around and selling to somebody else. the expectations is more than $6,500 for the third quarter. don't forgot tomorrow, on "money movers" the first on cnbc interview with ernie garcia, and what has been a heck of a year for this stock and company. >> indeed. phil, we pressured it. victoria, for you and the trade on carvana, i'm curious what you'll do. >> for me, this is a sell the stock is up 61% in the last month and a half. i think they'll see a problem. we saw it with car max. i think possibly we're not going to see the margin growth there. if the margin growth stalls out, some of this rally might have gotten in front of it. >> as everybody else gets more
2:25 pm
into and technology catches up, i'm not sure if this is sustainable. remember, two years ago this stock was almost in bankruptcy, so i think a bit for march, i'm going to take my 300% profit, see what they do on margins. i get worried after the car max results, they're just not going to be good enough. >> great point. vic victoria, thank you for your time today. still to come, looking to power tech gains. we will look at one etf that could be a solid companion trade. market navigator is next. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices voya, well planned, well invested, well protected.
2:26 pm
it's time to grow your business. create a website. how? godaddy. coding... nah. but all that writing... nope. ai, done, built. let's get to work. create a beautiful website in minutes with godaddy. create a beautiful website in minutes gang, now that we're returning to the office, we need our paranormal services to be more versatile. flexible working needs flexible technology. i know a group who can help us. not those new age shamans again. i'm talking world-class business experts. data geeks, strategists, tax advisors, the works. i do like data geeks. what about technologists? 40,000 strong, baby. who are these people? it's ey, believe it or not. can they help us build remote ghost-to-cloud tech? oh yeah. they've invested over $2 billion dollars
2:27 pm
in innovation in high tech data and analytics. the best of both worlds. that's our motto! actually, that's end-to-end transformation. we'll be able to hit our projections both fiscal and astral. and we'll have the tools to be more nimble wherever we go: home, tombs, caves, catacombs, you name it. this company sounds great. what do you think, agnes? looks like it's unanimous.
2:28 pm
the dow fights to stay in the agreement, dom chu is here, because it's time for "market navigator" and revealed the mystery chart from before the break. >> if we look at tech stocks overall, what our next guest is focused less on the tech earnings story itself, but more on what can power of tech neighbors lit real in the
2:29 pm
future. >> gentlemen could, i say power, because it's literally about power in this derivative play on technology stocks. take us through it and why you think it's the right trade today. >> that it is, dom. ai is using a lot of power, every iteration it becomes more efficient, demand is growing, so my view it's a byproduct of that compute growth. this is a headwind. we need to see who makes that a tailwind. that's power providers, that can bring it to the mac fastest, something like nuclear energy could do it quickly, we're getting earnings now coming from those big tech providers, telling us where they're spending money on data centers, even reviving old nuclear
2:30 pm
plants. that's why i'm looking at ura. >> i think it could be a better play derivative-wise, with less volume at the times. that we talk about all the time. >> it certainly can. first of all, i'm a chartist at heart, dom and kelly. i'm looking at 1326 in 40 weeks of moving averages. that's beginning to slope upwards. i say beginning, because it's beginning with the 13 week le moving average, so 2 3/4 worth of prices, and then i want to see it overcome its recess yan tone, then that would give me the conviction i need. and also confirmed by the --
2:31 pm
that gives me, from a technical persp perspective, a neutral to bullish view. >> what is the options trade you think you can do here? it sounds like you could just go long, but what else do you see? >> if we sell premium, we can tap tur the neutral to bullish view. the way i want to do that is i would sell the at the money put, go out 45 days, capture premium to, so earlier today, i was looking at the 32 strike december 20th puts. they were giving me about $1.80 worth of premium. so i'm capping my up side to 185, but in the long term, if you think about that, that reps 5.5% of the strike price or the current price of the security, even if the current yield environment, that's a pretty decent yield or discount i can
2:32 pm
get, so that's the way i would execute that. if you haven't placed that trade yet, i would lower my strike to something that's closer to the money. >> it's interesting. jessica, thank you so much. we appreciate it. we'll see you soon. >> thank you. the curious part about this, kelly is the way some traders use to get exposure and try to defer the cost or at least lower some of the initial outlay. they use options. they say i'm going to create the obligation. i'm going to create some premium, and so it's an interesting look. >> i just don't like it at the up side. >> you own it for the long term, you can ride it to wherever it hypothetically gotten. >> ty, over to you. >> thank you, guys. after the break, shares of trump media lowered today, but former president trump's stake has made
2:33 pm
him more money than any other business he's launched. more on that when we return. (cheerful music) (phone ringing) [narrator] not all multi-millionaires built their wealth the same way, you have... the fearless investor. the type a cpa. the bootstrapper. the bootmaker. yeehaw [narrator] but many do have something in common. we all trust schwab with our wealth. [narrator] thanks to our award-winning service, low costs and transparent advice. every day, over a million multi-millionares trust schwab with more than two trillion dollars of their wealth.
2:35 pm
2:36 pm
♪ welcome back, everybody. some massive stock swings today, most tied to earnings. it's time for a power check. first you were, qorvo, weak guidance the issue here, overshadowing a better than expected quarter. raymond james downgrading the stock. reddit, soars 40%, posting a surprise profit. >> first solar shares missing on results, also lowering its full-year guidance. despite the weakness jpmorgan say it's the best positioned solar name. and making headlines, super micro plunging more than 30% after exposing an auditor had resigned, reportedly disagrees with the firm over the gov
2:37 pm
governance. and dropbox cutting 20% of the workforce, citing a challenging environment and inefficient operations. yesterday the stock is higher by nearly 2%. leslie picker has our news update. >> lloyd austin said north korean troops wearing russian uniforms and carry russian troops are moving into a kursk region. according to officials, north korea has sent near 11,000 troops. apparently there's new evidence in the diddy case. combs has pleaded not guilty to the charges, fighting to be released from jail.
2:38 pm
two separate judges have denied his appeal. the two fans ejected from yankee stadium last night after prying a foul bowl out of mookie betts' glove have been banned from tonight's world series games. the team -- there's no charges on file. >> did you see that play? >> i missed that. >> it was a great play. i'm tell you. that mookie betts is my favorite player. i'm a yankees fan, i'm a new york guy, but betts is incredible. >> so many play makers on both teams. absolutely. >> mookie is the man. >> we should get him on the stock trade. joining "delivering alpha" on november 13th, investors will convene, just scan the qr code.
2:39 pm
here's your chance. or visit cnbc cnbc.com/deliveringalpha. we'll be right back. what tractor supply customers experience is personalized service. made possible by t-mobile for business. with t-mobile's reliable 5g business internet. employees get the information they need instantly. this is how business goes further with t-mobile for business. hi, i'm damian clark. i'm here to help you understand how to get the most from medicare. if you're eligible for medicare, it's a good idea to have original medicare. it gives you coverage for doctor office visits and hospital stays. but if you want even more benefits, you can choose a medicare advantage plan like the ones offered at humana. our plans combine original medicare with extra benefits in a single, convenient plan with $0 or low monthly plan premiums.
2:40 pm
these plans could even include prescription drug coverage with $0 copays on hundreds of prescriptions. and medicare advantage plans ensure that your covered medical costs will never go above a maximum out-of-pocket amount that you know beforehand. most humana medicare advantage plans include dental coverage with $0 copays for covered preventive dental services. vision coverage that includes vision exams and a yearly allowance towards eyewear. even hearing benefits, including routine hearing exams and coverage towards hearing aids. there are $0 co-pays for in-network preventive services like annual wellness visits, mammograms, and prostate exams. and $0 co-pays for routine vaccines and telehealth visits. you get worldwide coverage for emergency and urgent care when you travel, so you can have peace of mind when you're away from home. and of course, you should be able to see the providers you like. that's why humana works with multiple large plan networks of doctors, hospitals and pharmacies.
2:41 pm
so, get the most from medicare with a humana medicare advantage plan. you can have more coverage than with original medicare with $0, or low monthly plan premiums, and a yearly cap on your out-of-pocket costs. it's called medicare advantage for a reason. so, call a licensed humana sales agent today to learn more, and to request a free decision guide. remember, annual enrollment for medicare advantage plans ends december 7th. humana. a more human way to health care.
2:42 pm
welcome back to "power lunch." shares of trump media down big today, but it's had an incredible run. those games have helped former president trump make more money than any of his other businesses. robert frank has more. >> he heads in nearly twice as wealthy as the last two, and the reason is trump media. he owns about 57% of the company, that stakes worth about $5 billion. now around $7 billion. if elected, he would not only be
2:43 pm
the richest president ever, but the first to hold office while holding a controlling stake in a publicly traded company. during his first term, he put the trump organization into a blind trust, then there was the lawsuit involves his d.c. hotel and foreign interests. that was dismissed by the supreme court on the grounds he had already left office. now, with djt, wealthy investors and governments now have a direct path to add to his wealth. they can remain anonymous. trump saying in september he has no plans to sell the shares. the compare in a statement saying, president trump didn't get into politics for profit. tyler, this is a roller coaster, even intraday, with this stock. it was down a bit this morning, so it's all paper wealth.
2:44 pm
>> i assume former presidents have owned stock before? >> i'm also surprised by this. if you want to be treasury secretary, you know, just picking an example, you would have to sell a lot of cantor fitzgerald, but as president it doesn't supply? >> as paulson did. you put it in a trust or a mutual fund that's considered acceptable, in other words you're not trading in and out of certain stocks. with the exception of the vice president and president, everyone else has to adhere. even when it was a blind trust, it was 20/20 vision, because he knew exactly what was in it. so, in this kay, you know, he isn't said here's my plan if i become president with this asset. he hasn't said, but he doesn't have to. >> do we know -- this is all about the truth social. is that the only holding in djt? >> yes. >> do we know any of its
2:45 pm
financial met prediction? >> yes, there aren't many, basically revenue of less than $2 milan losses in about $16 million in losses the last quarter it's valued by the same as x. you consider the number of users and the length of businesses -- so yesterday, they were both down about $10 billion in valuation yesterday. >> i wonder how elon music feels about that? >> i don't think he cares. he sees the long side, and he thinking he's on the right side of this. >> to liquidate and takes these gains. then this whole thing becomes somewhat irrelevant. >> the question is, if he loses does it go to zero? if he wins what is the
2:46 pm
going-forward plan? if the idea is he'll communicate through truth social, he'll by president, but he's also posting on twitter now, so that gets rid of that criticism. >> they should buy something else, then he should buy twitter or something. >> yes, that's an idea. >> and then turn it into -- >> that's where he and musk finally have a meeting of the minds. >> robert, thank you. as we head to break. google is setting the bar, crushing estimates, and other mag 7 names on notify. they're all said to report this week. we'll dig into it when "power lunch" returns. ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere. ♪♪ take the next step toward your future,
2:47 pm
2:49 pm
2:50 pm
make you think about the rest of the field? >> look, kelly, i'm a belief that performance advertising is in a pretty good start. we saw that with google, we saw that with snap to a certain extent, certainly saw it with reddit. we heard that google for amazon aws. how does it make me feel? it makes me feel the broader t tailwinds have gone into q3. i think that bodes well for 4 q and ideally into '25 as well. >> what is going on to take a side bar trip to pinterest? is that a big move or something bigger to glean? >> something for pinterest that we're looking for is continued consistent growth and they've done a very good job of launching new products, getting newer users, getting gen z on the platform except that they
2:51 pm
are more exposed to certain verticals that may not be in this performance advertising bucket. so food and beverage, cpg being some of those verticals that highlight there. just a matter of time before we actually see that coming back. >> i misspoke because what i meant was snap actually. >> oh, got it. >> my fault. the return of the -- i don't want to call them the once high flying platforms, but snap is a standout. >> yeah, look, the thing with snap, we've had a lot of ups and downs. what we're looking for and i think the broader street is looking for is stability. as they redesign their platform with simple snap chat as a dr business does pretty well, is holding up pretty well, i think you might get that stability. we need to see a few quarters of that to continue and great to see the move. our view is around let's look for stability. let's see a few quarters together of just better results. >> amazon?
2:52 pm
>> tyler, amazon in our view, there's several things we're looking one, e. commerce demand. back to school was a benefit prime day. we go into the holiday season. the focus on amazon is two things. i'd argue it's aws growth and the cloud results at google yesterday suggest aws is pretty well positioned or should be at least. we're looking for acceleration growth there and profitability. there's a lot of debate whether aws profitability comes down as they need to invest in growth. frankly, if you are growing in the high teens, low 20s, you should be investing. i think profitability would hold up relatively well. the second debate on profitability is the margin on north american retail. it's just a matter of time not with standing the shorter term investments in project kuiper
2:53 pm
and third party partners. we're pretty excited about amazon. >> meta you have to buy. google you don't cover and microsoft. we can see ifothers can do what it appears alphabet is doing. thanks very much for your time. we appreciate it. >> thank you. coming up, a crisis of confidence? while a majority of parents agree it's critical for parents to learn financial literacy, a new survey shows many of them question their ability to teach it. that story is xtne.
2:56 pm
gang, we need our paranormal services to be more versatile. i know a group who can help us. not those new age shamans again. i'm talking world-class business experts. data geeks, strategists, tax advisors, the works. what about technologists? 40,000 strong, baby. we'll be able to hit our projections both fiscal and astral. this company sounds great. what do you think, agnes? looks like it's unanimous. welcome back. many parents don't feel confident enough in their own knowledge to teach their kids about investing. sharon epperson has been talking to parents about financial literacy. sharon? >> tyler, financial education may begin at home but some important lessons are missed and most parents want the schools to fill the gap.
2:57 pm
nearly all parents in a new survey agree that a class about investing would be more valuable than many required k-12 classes but only 26 states now require high school students to take a stand alone personal finance course to graduate. parents are so interested in kids learning to invest that nearly three out of four say all other things equal they would enroll their kid in a different school if it offered financial education and investment courses. many parents admit they don't know enough about the financial markets to teach their children. >> my son has been a leader in the household kind of bringing to us what we need to do for our finances so there's no way i could have taught him. >> students who completed an investing class recently visited the new york stock exchange. >> what i've taken away, you shouldn't just buy the product, you buy the company. >> they've been teaching their parents. >> generational wealth is super important to me and my family. >> i was also able to teach them
2:58 pm
like how much of a risk person they are. if they are a low risk person, middle risk person or high risk person. for me personally, i'm a middle risk person. >> research shows the risk of not learning about investing makes people more likely also to make quick speculative bets rather than focusing on building long-term wealth. tyler? >> has there been resistance in those states, the 24 that do not require the teaching of personal finance? >> people don't like the idea of a mandate of what you need to learn even though there's the man date for -- >> learn english, math. >> right. right. but that has been -- and then some could say, well, that early if you -- if they learn that early, will it make a difference later on in adulthood? yes. many studies show it will in terms of credit card debt, in terms of making better financial decisions when it comes to saving, investing in college, paying for college. there definitely is a return on
2:59 pm
the investment. >> funny the kids and their parents say we've learned more from you than you've learned be from us. >> yes. yeah. it's amazing. the fact that they're having the conversations as a family is so important. >> yeah. >> it does start at home often but it can continue at home and if you are helping your parents, too, i think it's great. >> love it. sharon, thanks. meantime, the yankees big win last night over the dodgers and shohei ohtani sends the world series for one more game. watch the yen volatility. it's 9 a.m. in tokyo and reports say japanese trading firms have fixed tvs to financial news and bans traders from working on their phones. it's hurting the markets. 12% of the japanese population is estimated to be watching. >> they love -- there's yam mamo tow, there's ohtani. that's amazing. they can't change the channels. >> he's a massive star there.
3:00 pm
they say he's like elvis crossed with taylor swift. but, by the way -- >> he's a transition -- trans-generational player. >> they need him to do a little bit more if they want to get over the finish line tonight. >> that'll do it for "power lunch." thank you for watching on this beautiful day in new york. >> "closing bell" starts right now. welcome to "closing bell." i'm scott wapner live from post 9 here at the new york stock exchange. this make or break hour begins the countdown to meta and microsoft. we'll ask our experts what we should expect from both stocks moving forward. both are in the green a little bit as we approach those numbers. in the meantime, the scorecard with 60 minutes to go in regulation looks like that. a bit of an interesting price action mix today especially as we begin the final stretch. you did have some better than expected economic data. you did have that better than expected report from alphabet and what was a higher nasdaq and
2 Views
IN COLLECTIONS
CNBCUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=766323006)