. >> tony zhang points out why now could be a good time to dig into caterpillar. and that's no bulldozer. and professor mike khouw is >> this is an interesting situation. >> is running through duelling option exercises on how to play nike going into next week's earnings. if you already own the stock or not, you can just do it. it's time to risk less and make more "options action" starts right now. >>> welcome. i love doing this show, but i've got to take an issue with that deep-voiced guy. he says barrel of cheeseballs like it's a bad thing. really come on. well, it has been a maybe not bad but tougher year for the consumer space the xlp consumer staples is up but just over 1% so it's underperforming the broader market carter worth, a man who maybe has seen a barrel of cheese balls in his day, says there could be an even bigger consumer crackdown ahead. carter, what are the charts telling you? >> a bunch of things going on. one thing to consider is that the dollar, which has been very, very weak, has started to stabilize. second only to technology, the staples sec

i think this is a potential continuation higher here for a name like caterpillar.specially if you couple with the fact that this is a stock trading at a fairly reasonable 28 times forward earnings. it's got a very stable dividend that's fairly well covered by operating cash flows. this is the type of stock i'm looking to play defense in this type of weaker market. due to the weak market, i have a relatively neutral outlook on caterpillar in the short run but long-term i have a much more bullish view for caterpillar so the trade structure is a call diagonal. going out to the october-december 155-160 call value. i'm selling in october 160 call against it, collecting about 3 dollars fifteen. net-net i'm paying about $7.15 for this call dieing a that, which risks just a little bit over the 4% of the underlying stock price. i specifically got a little bit more aggressive on that october call, selling that 160 call because i am short-term fairly neutral on the stock and i want to collect as much premium as possible here that october 160 call offsets about one-third of th

caterpillar dies and the mushroom grows through on to the surface we harvest this strange mix of caterpillar and fungus so. good in terms of the openings i'm going to have a thing that's i don't i don't know i don't know if it does or does it mean to me outside of butan people use them as medicine. especially to make men strong. it gives us a really good income. and that's very that's why there are still young people here neal thinking wouldn't have been that snowballed and order through their snow and then the summer highlanders can now even afford to take a helicopter taxi to go shopping in the capital for them for the local good judge it was a model for the world and i've been in there with me and you. say wang will need to spend many more weeks searching in order to pay back that loan. little georgie and his father are beginning the last day of their journey they're starting the climb to lima non-gays monastery at an altitude of over 3000 meters. walk a bit more tell me when you get tired. i'm tired . just a little more than i'll carry here. and . finally after 4 more hours of hard hikin

caterpillar dies and the mushroom grows through on to the surface we harvest this strange mix of caterpillar and fungus some. time with openings in the length of a thing which i don't know and then david does that mean with me outside of butan people use them as medicine. especially to make men strong. well the new it gives us a really good income. and it's a very that's why there are still young people here near the game would have been that snowballed in the order of the there that's enough and there was some highlanders can now even afford to take a helicopter taxi to go shopping in the capital for them for the local good it was a while for the golden ring and then from there you. say wang will need to spend many more weeks searching in order to pay back that loan. a little georgie and his father are beginning the last day of their journey they're starting the climb to lima non-gays monastery at an altitude of over 3000 meters. walk a bit more tell me when you get tired. of this. i'm tired . just a little more than i'll carry here. finally after 4 more hours of hard hiking they've reached

caterpillar dies and the mushroom grows through on to the surface we harvest this strange mix of caterpillar and fungus so. good going to move though i'm going to learn for every thing which i don't i don't know i don't the baby does that as i'm in the outside of bhutan people use them as medicine. especially to make men strong. it gives us a really good income and that's why there are still young people here near them would have to pay and that's a no vote and. there that's enough and some highlanders can now even afford to take a helicopter taxi to go shopping in the capital for them for it was a mile from the garden and. through and you. say wang will need to spend many more weeks searching in order to pay back that loan. little georgie and his father are beginning the last day of their journey they're starting the climb to lama non-gays monastery at an altitude of over 3000 metres. what could be more tell me when you get tired.

caterpillar and fungus. so. good to the term with openings and with an interview in which i don't have to go and the baby does it has to mean that the outside of butan people use them as medicine. especially to make men strong. well the new it gives us a really good income. and that's why there are still young people here nearly would have been that's a noble and or the there that's enough and there was some highlanders can now even afford to take a helicopter taxi to go shopping in the capital for them for the local good they're going to the mall for the world in the in the. north and as you. say wang will need to spend many more weeks searching in order to pay back that loan. a little georgie and his father are beginning the last day of their journey they're starting the climb to gaze monastery at an altitude of over 3000 meters. walk a bit more tell me when you get tired. i'm tired. just a little more than i'll carry here. finally after 4 more hours of hard hiking they reach the monastery. which is really

and awareness program for thousands of beautiful monarch butterflies that began their lives as caterpillars in michigan's 11th district. before attempting the 2,000-mile migration to central mexico every year year. a couple years ago, macy, then just 8, petitioned the highland township board to establish the milk weed mile. a beautiful stretch of land along highway n-59 in -- m-59 in highland township that provides a sanctuary for monarchs. along this stretch of road, which is designated as a no mow zone, milk weed is left to grow and thrive freely, creating an ideal environment for monarch caterpillars to complete their lifecycle. each summer these conservation efforts culminate in the highland monarch butterfly festival, an annual celebration of these amazing butterflies in an effort to raise awareness of this species that has seen their global populations plummet in recent years. i was honored to visit the monarch festival in august of 2019 and it was so inspiring to meet young michiganders passionate about conservation and biodiversity in our great state. this is also part of the work t

caterpillar. a ton of doubters.cession that didn't stop the stock from rallying to 108 to 149 today will you look at this? this is a stock everyone loves to hate. cat has huge position in china china is in much better shape and has good background in some of the strength in this country. from lang's perspective, this is one gorgeous chart the stocks made a series of higher lows and higher highs, you can see that each time the relative strength index keeps steadily moving upward that's what he wants to see. we got a bullish crossover again this time on the mack d line and same in rh caterpillar is at the highest point in two years the stocks currently over bought lang says he didn't make it a sale he says you should wild for a mild pull back and do buying today we got the pull back he is looking for. cat stock is down $5 nearly if it comes down a bit more to the ten-day moving average around $148 a share around here. well, he says you got to buy it. he's betting it goes to 175 by the end of the year. even if orders a

and like you mentioned, caterpillar. so people are looking at materials, industrials.that equal weight does not break down, that is important to ok with people saying, the really big work from home names have gone too far and i need to look for greener pastures. guy: but there have been so many had fa -- head fakes, i am wondering, why is this different? michael: we have seen an acceleration in anti-work from home. you have heard from jamie dimon, from netflix, big ten football is coming back -- i and from the midwest -- and the transit data. we are going down a one-way street on economic recovery, and in the market is sniffing that out. people may be fighting it, but every step we take down this recovery is down a one-way street in my mind, and that b odes badly protect, because people will look at housing, health care, those things. alix: really quick. will what is happening tomorrow play into this? michael: if you are heavily long tech, that is going to be a real fireworks show, we have to beyond liberty that day. there will be a lot of action. alix: you promote us

caterpillar is up for the week >> thank you, bob. thank you, ty.oton and thank you for watching "power lunch," everybody. "closing bell" starts now. have a great weekend >> you too welcome to "closing bell." a wild session on wall street following the markets' worst day in months yesterday. september has gone off to quite a rocky start. let's have a look at the action today. a surprise drop in the employment rate by 2%. down to 8.4% which pushed futures into the green before the open but then losses accelerated. dow fell as much

i'm like a caterpillar that went into a contact coop and came out as a shittier caterpillar. if you've paid attention to donald trump, it's not surprised he likes the idea of being a dictator. he's written more love letters to kim jong un than his own wife. the question is will the republicans allow him to get away with it? and today several heavy hitters responded. >> republican lawmakers defending the idea of a peaceful transfer of how w power but unwg to attack the president directly. smart mitt romney tweeting any suggestion a president might not respect this constitutional guarantee is unthinkable and unacceptable. >> from marco rubio, as we've done for two centuries we will have a legitimate and fair election. >> senator majority leader mitch mcconnell tweeted there will be an orderly transition just as every four years since 1792. thank god. mitch mcconnell says the election results will be honored. if there's one person who's word we can trust, mitch mcconnell. a mitch mcconnell promise is as trustworthy as a husband with glitter on his face. now he says the winner of

some fresh money to work but not in the areas of facebook or faang or megacap growth fwbut in the caterpillar, in the dows and the 3ms. we say maybe those are the ones that got ahead of themselves. it's time for money to go into the depressed areas. >> i think that is the trend going forward for the next -- i think it's trade i don't know if it's another week or two months that's where the momentum is the markets been a momentum market for quite some time not just this year last year and the year before what works, continues to work for a period of time if i look out a year, i don't want to own those industrial stocks because i think the ships are stacked against them the economy is not going to pull out when you snap your fingers i think it's plateaued to get vaccine, but you're basically making a typical early stage bio tech bet by going there. that's binary. i do believe we'll get a vaccine. what if we don't where's the greatest risk? it's in the airline and industrial names >> we don't get a vaccine, the entire market is at risk >> i agree the trend is there now i just think if you look o

caterpillar has been at two-year highs. veron, let me turn to you. are we going to see rates go up given everything the feds are trying to do here, or will we be parked in this range >> everything tells me we'll be in this slow environment for a while. chairman powell said the expectation is not going to reach 2% since 2023. since that 2% has to be on track for quite some time, along with maximum employment, in order for the feds to lock ok at increasig rates, in our opinion, we'll be in this low rate for a long time even looking at where the treasury is or where the secret corporate index is, there's really not much reward for extending in term or taking any additional credit risk as we're going from a quarter basis point in the five-year treasury to 1.44 in the 30-year treasury where the equivalent 5 and 30-year corporate is 79 and 2.69 there's not much reward there, and everything is pointing to fixed income rate. we'll stay in this environment for quite some time. >> what matters if we don't get a stimulus for quite some time we all thought this

we might get an explanation for the puzzling run in caterpillar. until then, though, we don't really know what this rebound is made of or if it has staying power. now let's just see what awaits us s suzette in illinois. >> caller: boo-yah how are you today? >> good, good, thank you for calling. what is going on >> caller: i have a question about slack. i have been hearing about it for the past year and i just bought some shares last week. the drop since then, do you think i should hold on or let it go >> well, i didn't like the quarter. they did talk about how there were actual macro issues, there are people being laid off. there are people who not as many companies buying as new seats in slack. i couldn't come up with a thesis why to own it, frankly i don't have a thesis. let's go to brandon in new jersey, brandon. >> caller: boo-yah, jim. >> boo-yah >> caller: owning your stocks going into the annual tomorrow, they cut their treadmill by $1800, three exercises spinning. they will end up selling the trade that will open the flood gates for everyon

ge, caterpillar. this is a pretty good trend overall.a cap in september meantime, they're not buying into the buy the dip mentality. these stocks are still sitting down there the equal weight versus the s&p 500 itself, now this is just this month, but the quae weight is essentially flat and the s&p 500 which is down 4% that is a very widespread. unusually widespread and it shows you, i think, that portfolio manager looking for a little more breadth out there in the portfolio in the event the reopening story really starts to broaden out. this rotation is looking a little stronger than the past rotations and deval that fizzled out. we'll see. >> all right bob, thank you stephanie, what we've been talking to, whether it is a reopening rotation or a cyclical rotation, is this -- does it have to be either/or with the mega cap technology names? is this a time where if you've been in some of the names have big paper profits from an amazon or a netflixnetflix or google, i make moves right now >> i mean, i think so. look, i've been trimming amazo

. >> would you rather own caterpillar knowing that there is a mining resurgence would you rather ownps would you rather own fedex >> yes what a move for fedex. >> they're auto -- valuations. someone could say, wait a second, jim, union pacific is more expensive than it's ever been i would say no it's not really because i think the earnings will be there. i am pointing out that the stuff that is working has gotten too expensive. >> there were great companies in the late '90s that are a still with us. cisco may have gotten ahead of itself. >> when did it come back to where it was >> it came back a lot. it hit $500 billion in market value. >> i don't think it ever got north of 480. >> maybe it hit 480. amazon was its first growth spurt at the time. yahoo maybe no longer with us in a significant way, aol used currency to buy time warner now a part of at&t cmgi, i get that didn't do as well jds, that stood for just don't sell us then just don't sue us >> microsoft hit obviously a level in terms of pe that i don't think it's anywhere near now. >> no, qualcomm. >> qualcomm. >> i'm warning p

closing the gates but if you do know that you're not coming back because neither come out through a caterpillar will happily snatch they contract for heavy duty trucks and now everyone is back to work fractures never really went on strike but it was the so-called oppositional rob that these activists that came out of nowhere who organized everything well in advance preparing an entire framework of protests but they wanted these people to go on strike so that there would be chaos and turmoil but i wasn't worried after all it wasn't about me really i mean nothing last forever some day someone will have to replace me as president if we still have a presidential republic someone will come take this office sooner or later but speaking of the current generation of by the russians as you said there bella russians who are still not afraid of anything that's something that ukrainians especially like to say those city by the russians they just haven't been scared properly but once they have a taste of fear they'll know what's what i personally wouldn't want my country and my people to be scaled in the nu

closing the gates but if you do know that you're not coming back because neither come out through a caterpillar will happily snatch they contract for heavy duty trucks and now everyone is back to work fractures never really went on strike but it was the so-called oppositional rob that these activists that came out of nowhere who organized everything well in advance preparing an entire framework of protests but they wanted these people to go on strike so that there would be chaos and turmoil but i wasn't worried after all it wasn't about me really i mean nothing last forever some day someone will have to replace me as president if we still have a presidential republic someone will come take this office sooner or later but speaking of the current generation of by the russians as you said there bella russians who are still not afraid of anything that's something that ukrainians especially like to say those city by the russians they just haven't been scared properly but once they have a taste of fear they'll know what's what i personally wouldn't want my country and my people to be scaled in the nu

that's basically the value of morgan stanley and caterpillar. manus: it is gargantuan.t the snub from s&p? in other words, they didn't go into the s&p. or was it that gm went for this huge, scooped up a big stake in the maker of the badger pickup. bloomberg intelligence, they question the earnings. they are saying it's all about regulatoryability, emissions. that's the risk. >> certainly is. coming up, we are going to stick to another story coming out overnight. astrazeneca put the brakes on its vaccine trial. researchers are reviewing safety data after a participant became ill. more on that story next. this is bloomberg. ♪ ♪ manus: it is "bloomberg daybreak: europe." manus cranny in dubai, annmarie hordern alongside me. astrazeneca pushed the pause button on the vaccine trial. the company will stop giving its experimental coronavirus shots after one subject became ill. investors,n jolted sending u.s. shares of astrazeneca lower. dani burger has been tracking the pace on the pause. doubt ais is no setback, but the severity of that setback depends on whether the illness

closing the gates but if you do know that you're not coming back because neither come out through a caterpillar will happily snatch they contract for heavy duty trucks and now everyone is back to work fractures never really went on strike but it was the so-called oppositional rob that these activists that came out of nowhere who organized everything well in advance preparing an entire framework of protests they wanted these people to go on strike so that there would be chaos and turmoil but i wasn't worried after all it wasn't about me really i mean nothing last forever some day someone will have to replace me as president if we still have a presidential republic someone will come take this office sooner or later but speaking of the current generation of belorussians as you said there bella russians who are still not afraid of anything that's something that ukrainians especially like to say those city by the russians they just haven't been scared properly but once they have a taste of fear they'll know what's what i personally wouldn't want my country and my people to be scared in the world. i

. >>> thank you for bringing us that interview as we head to break, look at shares of caterpillar.e worst performer on the dow. the company said total machine sales fell 20% in august that was its fifth straight monthly decline of more than 20%. the stock nearly break even for 2020 up just over 1% we'll be right back. mach in this piece is talking to me. yeah? so what do you see? i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪ . >>> welcome back looking ahead to that apple ipad watch event that starts in about an hour. the big question is this a covid pull forward that we saw with a spike in growth of those products or a narrative shift? only new products will tell us, right? >> can tim cook get us excited about those new products this is typically a big event. what kind of

all right, let's go to caterpillar. what's this? month lu decline of at least 20% in global sales of their machines being bulldozers, excavators. the biggest hit was in the energy and the transportation sector. so the numbers down 20% in august, but look at that. in north america down 35%. cat seems to be doing a bit better in asia. china's economy is, basically, 90% reopen. but caterpillar is a taking a hit today because this is a sign of demand to build. stock down 2.5%. stuart: not good, but we'll take it. thanks very much, lauren. florida reporting just over 1700 new virus cases monday. that's the lowerrest single-day count in the state since june. that's big news, but you probably won't hear about it in the mainstream media. we will disit with senator rick scott, florida republican. he's next. ♪ ♪ one day we'll look back and remember the moment that thing, for one strange time in our lives, got very quiet. some lost work and invented new ways to get by. others were busier than ever, and found strength they never knew they had.

textiles, caterpillar gets a boost, recovery into value stocks. it?do you think about sean: i'm afraid to say that i have been in that trade and we have had a few false storms. it has been difficult in many ways because everything is in place for growth cyclicals to perform. you have possible inventory stalking globally, deflation fears have gone to zero with the fact that the chinese currency strengthen. oil prices, where they are at the moment, is just about good for everybody to be able to expand margins. europe is a huge net energy importer. everything is in place for the growth cyclicals to perform. one thing that is missing is the steepening of the yield curve. means moved up but by no convincing enough for those big rotation trades to come through. unfortunately, it will require the tech names to see their earnings revisions start to peak or rollover, before we get the full momentum into those value, growth cyclicals stocks. let's talk about central banks' ability to raise we haven, and if reached the point of a liquidity will continue look i t

caterpillar did really well. where are we in terms of the shift of positioning, a.k.a.gets washed out? dean: when we look at futures positioning, i always have to take those with a grain of salt. it is very difficult to know if these are against options positions, they could be shorts against etf's. we do know that the world is long a echo a lot of tech. it is what has been working for years and years. apple, amazon. we know that the concentration has gotten extreme -- has gotten increasingly top-heavy. one of the issues i've had is if you look at -- forget tesla. that is kind of on its own. some of the superhigh flyers. when you look at apple and amazon, in the period leading into this, the valuations of those two mega caps got as extreme as we have seen. that is not really the case historically for those two, at least in the past couple of years. that is a worry. theseou think about stocks falling, we have to recognize just how much they have risen. it is just difficult to get is ind when the market some ways struggling psychologically, and there is no obvious valuati

i don't know if anybody missed this but the industrials are on fire you look at companies like caterpillar breaking out it's at a 52-week high general motor, forget where the price is the underlying fundamentals of car sales and car pries are terrific you can look at industrials for opportunities if you don't want the stay in tech >> i know you're thinking a lot about this now, we know you sold slack. if i recall, you no longer own zoom am i right about that? >> i took my original costs. my original cost average was in the 70s pre-pandemic i have the house's money on the line i don't recommends that i ves r investors i veinvest that way. zoom was a trade for me. i wanted my principal back out but i'm there. >> not in the way you were before what about teledoc >> actually more if you buy a stock at 70 and it goes to 300 and you take off the original cost, the shares you are left with are more than what you starred with i'm still there. it matters to me >> what about teladoc? >> no position don't own it >> you did have a position, right? >> yeah. check this out i will only -- >> you understa

caterpillar is up 9% 3m is up 6%. some of the retarilers are doin well this is one of these periodic runs under armour, vf corporation are all rallying president this is a little better than most of these rallies in the cyclicals that we have seen in the last few months as for snowflake, i want to point out we're near the lows. 226 or so. remember, opened at 245 yesterday after pricing at 120 now you might think good heav s heavens, almost nobody would double in a single day 11 ipos had doubling in their price this year. the average in 2020 has been 36%. that's a lot bigger than normal. all have had niece pops for the overall month but if you take a look at the ipo return so far big returns, important thing is they had a nice big pops on the first day, look at this. the average return after the first day is down 1% the the 11 companies that had 100% or more pops for the year for first day of trading, after that, they averaged down. this goes to the point here which is most of the big money on these big ipo pops is mad

dow winners for the week nike, caterpillar and dow.ands out for you sector wise in terms of what is likely to perform from here? what is your take on the banks which also had a pretty tough week despite some rotation happening into the underperformers but not them >> that's right. we have seen better relative performance from materials and industrials as you mentioned earlier. but other areas of that cyclical value trade like financials and banks and energy are just not participating. so i think you really do have to be careful here. tl there is some long term structural headwinds behind energy and financials in our view, specifically when you look at the banks we just don't see the rate environment as particularly helpful going forward. and then i think you have to think about what the loan loss provisions, you know, they set asued quite a bit. but we do expect defaults to pick up particularly in the small business space moody's updated their default projections and while we're not according to them baseline scenario not going to get

in off of session lows after the big, big selloff yesterday, i went to take a look here, it is caterpillarancial and chemical material comfort, and industrial taking is higher today, that is a little different than what we see before, on the losing side for dow stock, we are microsoft and the red, salesforce.com and new entrants to the dow and home depot as well. sometimes a pandemic plagues are slowing down intech is slowing down as well. when it comes to the s&p 500 i thought it was interesting because you got brown-forman, up 9% going into a holiday weekend and we've all been drinking a little during this pandemic but that is one to watch their and also seen a 5.5% after earnings and outlook if they topped the wall street estimate. finally let's take a look at the losers, the energy companies, diamond back and front tier and oil price under prices are lower today, the winner on the nasdaq is interesting as well, your after the second quarter earnings of zoom crushed the estimates in pharmaceuticals and hedge funds getting into this one. back to you. cheryl: people have been drinking dur

working that backhoe >> we're taking her to dig g diggerland >> if this works out, this will hurt caterpillaready seeing less revenue, so if people rent more it's ag, deere and cat that could really get hurt. >> good point. thank you, seema see you later. >>> finally tesla, you probably heard, said it will sell up to $500 in stock. the new shares will be sold from time to time and at market prices and it will issue to banks on when to sell those shares despi shares despite dipping lower today, tesla is up 500. when stock prices are high, you issue more stock >> yep the market has been begging and daring tesla to do this. it took this much of a gain for them to just issue, by the way, only about 1% of its market value. $5 billion is a little over 1% of the market value. it is an interesting test for one reason there is a general presumption that tesla at its size, it's just a matter of time until it gets inducted into the s&p 500 they thought the company would do a share offering which would ease the way for them to get their allocations without having to share this is an interesting test, $5

caterpillar is a name we talked about a few months ago pete was on that night the stock was trading around 134. we said it sets up well to test that high we saw in january which was 148. it did that, actually traded north of 155 and here we are at 148 again. so for trading opportunities off exactly what todd and tony said, a name like that for the risk/reward t risk/reward to me looks interesting. >> caterpillar, perhaps some of the transportation stocks like fedex and u.p.s. not so much the airlines just yet. thanks, guys we are coming back in a moment coming up on the show, another twist in the seemingly non-stop anime drama between lbmh and tiffany. the bold claims that the french luxury house is making about the company it wanted to buy just a few months ago and things could get pretty spicy for shares of mccormick. get it, spicy, mccormick what options traders are expect willing from those results all that coming up when "fast money" returns after this break. i felt like... ...i was just fighting an uphill battle in my career. so when i heard about the applied digital skills courses,

>> this is coming back, one of the reasons that caterpillar is up so great.talking about iron ore being great, copper. because china, like them or not, is enduring a boom that said, i still can't get behind them. i have other companies i would rather own, which include free port, which has not a stock, is better than them one more zach in georgia, zach? >> caller: hi, jim i wanted to know about the trade debt i have a significant amount in that stock >> i just saw jeff green interviewed. it was spectacular, but this is the kind of multiple to sales stock that i'm afraid is going to get hurt by the flood of ipos and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lhtngigni round is sponsored by td ameritrade oard. oard. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great fl

caterpillar is not exactly a high-tech fancy name. it isn't an industrial, that was at new 52-week high today. we've seen a lot of retailers in recent weeks stand up. connell, hitting the nail on the head. what you want to in a healthy market is rotation. if tech isn't going to lead the market higher, some other major sector is. that is what all eyes are peeled on in terms of right now. what if anything will lead the market higher. connell: we'll take it for what it is worth today. best day for the nasdaq since april after entering correction territory. jonathan, thank you. melissa. melissa: joe biden slamming president trump in the battleground state of michigan. listen. >> as trump delivered on stopping companies from shipping jobs overseas, american jobs? you already know the answer. of course not. the rate of offshoring by federal contractors, they are people that get federal dollars, big companies being paid by u.s. taxpayers, has doubled, doubled under trump. melissa: the democratic nominee discussing his economic plan made in a

what's happening is when we see wells fargo today talk about how caterpillar is undervalued, deere isndervalued, i just keep thinking that if you get an uptick in airline traffic, david, people are going to say we are back and, therefore, many even there is no stimulus package which is pretty amazing because of course we are not trading joe's deli we are not trading ann's coffee shop those are the ones that we know when you walk down the streets of work and other cities can't open because they don't have any customers. >> you've made this point and we will continue to make it because the reflection of the u.s. economy that we see in the stock market is not the reflection of the u.s. economy to your point. and i think the big keep getting bigger we can't say it enough and it's true talked to lowe's of course and marvin ellison, i mean, there are the beneficiaries of this period, jim, and then there are the losers. >> right. >> and the beneficiaries are the ones that are right in front of us, that we see every day, that we see publicly traded, unfortunately those who are losing are perh

caterpillar, a lot of industrials bundled together in one low cost. if you're looking to do that cheaply that is a good alternative to look the. charles: symbol is vis, folks. talk about snowflake, not the folks out there always complaining but we're talking about the superhot ipo. the range in this thing increased 100 to 110, from 75 to 85. dani i want to talk about this as a potential buyer also the slate of the hot ipos. is it reason for optimism or is it a red flag for you? >> it is actually very optimistic. so when you look at the ipo activity in the marketplace and where we have all of these hot deals and all of these unicorns lining up to go public, that means the market is healthy and it is very liquid. when that happens. you have a lot of clamoring for these ipos. snowflake actually has great earnings. they actually recorded year-over-year growth of 173%, which is pretty massive. going back to the late '90s, when we had giantly robust ipo market. you didn't have companies with that kind of growth. in most cases you didn't have companies were

surge proves true, and sally lives up to the forecast it would be the first real test of the post-caterpillarkatrina. there are warnings for south of new orleans, down to the bayous. they have evacuated, a number of roads down there have closed. states of emergency and evacuations in alabama, mississippi and louisiana. for people in new orleans they wonder if the tourists will ever come back. welcome to bourbon street in new orleans. during ordinary times, bars would be opening, music would be playing and good times would be had by all. these are extraordinary times, between the coronavirus and back-to-back hurricanes, the lifeblood of this town, tourism is now on life-support. most of the folks you see are here to board up ahead of the storm. >> just not knowing when there is an end in sight. if you had a date where, okay, things will turn around starting now, you can pace yourself and be prepared for it but it is the inconsistency and just not knowing that can kind of drive you crazy as a retail owner. reporter: what is really concerning residents here is just how much water we were talking

this is one of the worst days i have seen in a long time for honeywell, 3m, caterpillar they just had really nice runs and this is a pretty big downdraft today, but the same with some of the reopening stocks that are out there. kohl's and the airlines have held up pretty well in the last couple months, starbuck's, even like simon property group has held up well mohawk, another one that's held up this is a good day i've seen for most of these stocks and subsectors in quite a while. again, though, the tech part of reopening, the tech part is holding up well. so you're getting the usual names here, your apples, your servi servicenows, qualcomm, adobe the tech side, they're generally up, or as you see in the case of apple, it's on either side of positive or negative today that's a very noticeable trend the problem with the s&p right now, we've been on such an uptrend for three months, there is not a lot of technical support. yes, technical support matters, momentum matters the 200-day moving average right now 31.04, and as you see there, we're a long ways from that, about 100 points, but

sir, why would you want to meet with the caterpillars for? i want to find out why the hell the catapult is not working. so they have a system, it's all electric, it's all electrics. steam which is great, it's powerful, they know how it works for years and years, they decide to go all electric. now if you take a little glass of water, and you throw it that's the end of that, someone will from mit how do you fix? we're dealing with the ocean and rockets being shot at the ship and rough stuff right? but it wasn't working, so i said i want to meet with the catapult there were five people, they came in, one's been doing it for over 20 years he said. i said who's the boss? i am, sir. i said what do you think of our new system of electric catapults? sir, it's no good, sir. i said, that's not good. that's not, that's actually what i did expect to be honest. i said, so it's no good right? the system is no good? no, sir. when you think epstein, well that's the greatest i can refer breaks down a can fix it with a blowtorch or a hammer. and if the waves

american express, dow, 3m, caterpillar, honeywell. they shaved 300 points off the dow at one point. this is economically sensitive sectors represented here. materials, industrials, financial, energy stocks really taking it on the chin as folks start to think about what will happen with the economy with these headlines today. it is also notable a bit over the weekend china announced rules for a new regulatory body that can blacklist foreign companies, read, u.s. companies i believe. take a look at apple. we've got the stock up here. look at the turn around in this stock, a focus for the market a selloff for weeks. a bear market friday. now finishing higher today as you can see. an amazing turn around for that stock. a lot of hopes pinned on that one. talk about some stay at home stocks. people focused on peloton, zoom, docusign all in the green. investors focused on the stock that they might do well if the coronavirus continues longer than anticipated. a busy market. we'll have to keep an eye on it. a little better this afternoon. back to you. connell: thank you, gerri. our panel tal

caterpillar announced a distribution to shareholders two weeks after saying they would be furloughing workers. why are they continuing to fire workers, get dividend, and they are the beneficiaries of the fed's stimulus money? chairman powell: there really are not beneficiaries of the program. that refers to the fact that we bought small amounts of about inng bonds from the market, 800 different companies. we did not make a new loan. they got no credit because of it. they are not actually beneficiaries. we have not made a single loan to a corporation. rep. raskin: ok. i guess i'm a little puzzled by that. it was my understanding that these companies are partaking of the feds authority. chairman powell: what we are doing buying in the secondary market to support the overall .rk function area -- we did not want to pick winners and losers. we created an index of 800 companies. we did not ask their permission. when a hundred companies are having small amounts of their bond purchase, no one is benefiting. it supported market function. a large group of companies were able to go out and finan

caterpillar is up for the week >> thank you, bob. thank you, ty. have fun with the peloton and thank you for watching "power lunch," everybody. "closing bell" starts now. have a great weekend >> you too welcome to "closing bell." a wild session on wall street following the markets' worst day in months yesterday. september has gone off to quite a rocky start. let's have a look at the action today. a surprise drop in the employment rate by 2%. down to 8.4% which pushed futures into the green before the open but then losses accelerated. dow fell as much much as 628 points the nasdaq was down 5% now we're well off those worst levels as tyler and kelly were discussing financials and industrials are in the green tech though does continue to lag even though it is bouncing back. sara, we're well off the lows but in the red just about. >> and in the red for the week which breaks the five week win streak plus, turning the page we'll speak with mark thompson whose tenure comes to a close as of tuesday that stock climbed more than 400% under his leadership. an

are the numbers and trucking has been -- the makers of trucks, they're doing quite well yesterday caterpillar a high nobody could figure it out it could very well be this last night we had 7% plus in rails. we have had negative, negative, 7% carloads up, that's intermodal, that's truck that's a win >> jim, here come the cruise lines, some of the retailers, kohl's, gap, carnival, norweigian, royal. so that trade is rearing its head again. >> that trade is back. gap stores it's so funny people talking about@let at that having ooth 6% growth versus lulu, that is back. the robin hood crew loves the cruise lines, i wonder if they're actually taking any. no, because you can't do it. norweigian has two years of cash hanging around if you want to be able to go in one that has staying power it would be norweigian if you think there's a vaccine i know because i -- cruising is pretty cool, my wife has gone on good cruises, you get so the great deals. i think you should take down 20 -- they won't let you do this i don't think but take down like 20 state rooms because the deals are so great this is a hope

trade is starting to shape up, leadership out of xlb, the material stocks, new 52-week high of caterpillartention what could be next. >> he calls you josh b as well that's his shorthand for you. >> i hope so >> warren b and josh b some of these names, we're talking around cyclical stocks, maybe the market is pricing double digit recession, when you get news like astrazeneca, the pause in vaccine trial because of potential side effect, does that make you wonder about the cyclical trades? because so much is based on the belief there is going to be a vaccine sooner rather than later and we are to get through this in a way that brings consumers back into the economy? >> luckily it wasn't the only vaccine we're kind of putting our money on i think that it shows that the system has worked. i think all americans and consumers around the globe want it to be safe. i'd rather have scientists come in and check that. i don't know it's necessarily a bad thing. i'm not sure how it's going to shake out anyway i don't think optimism about the vaccine is baked into the market a lot of it is in there. i do