what are you saying that howard schultz is nothing? >> we are seeing a ton of different data sources that high income consumer spending is the last leg of the stool that is supporting u.s. economic growth were we are noticing and why we expect the slowdown over the next 12 months is high and income consumer sentiment is below that of other consumer income cohorts. is a really important flight that we track. other thing we are looking at is personal disposable income is negative, down 4% year-over year. if you put those together, what we expect is over the next 12 months with equity market relatively that that consumer spending will slow. response to howard schultz is,, what is important is what we expect is trade-offs between consumer spending categories. it is not that all sectors will fair the same. given that we see high interest rates and low and real disposable income it is those durable goods categories where we expect to see material slowdown and spending. >> that is why it has been confusing to track what is going on with the c

a year after he took on role in just months before howard schultz's set to depart as ceo.ails on this. kate. >> that's right. coo at starbucks will be departing the company at the end of the year transitioning to executive adviser as of october 3rd. the company is reorganizing the leadership team eliminating the coo role at end of the fiscal year. culver has been with the company for 20 years, took over for brewer after she left for the ceo role at walgreens. and in letter from howard schultz about the executive structure change, he said our reinvention vention requires us to rethink the leadership struck tower create every opportunity for the new ceo and to accelerate delivery of modernized and elevated experiences for our green apron partners and customers. now that reinvention has been a very big focus for schultz who will be leaving at the end of the calendar year. the new ceo has yet to be named, but the company is speaking to external candidates for that role. and this is the fourth exec departure brewer left in 2021 and former ceo johnson in march of this year, will

alyssa, we should note on the call, howard schultz saying they're not seeing any meaningful reduction now in consumer spending. he's touting the brand's pricing power and also says they're not seeing consumers trade down. that something we did hear from mcdonald's and aaa over the week and particular starting to pull back. it doesn't look like it's happening yet for starbucks. >> they have had price increases recently. >> that something all companies are testing. how much they can increase and when consumers will start to pull back. analysts have singled out starbucks because it caters to a higher income demographic that may be less price sensitive. looks like that pricing power remains for this brand for now. >> thank you, kate rogers. go to tim seymour who is an investor in a stock and a customer of the stores. >> and have been very loyal and defending starbucks for years. still on the stock and still go to the store. i do find the price points at some point for someone like me who maybe i can afford. maybe i shouldn't care so much. i always paid more for a cup of coffee 22 years ag

leading up to the vote, posters urging starbuck's ceo howard schultz to bargain with organized labor began popping up at windows in the other stores in the neighborhood. customers also seem supportive. mei ling ventured over from bernal heights to get her cup here today. >> it's good for the economy, for the people that live and work in the city. i'm so thrilled that they were able to pull this off. so i wanted to support them. >> i think it's about time to equalize a little bit the pay of the common people. >> reporter: this weekend, employees at the unionized starbucks store in santa cruz held a three-day strike supporting other stores' efforts to organize. we've reached out to starbucks by phone and email for a response to the union vote at the castro neighborhood store. we're still waiting for a reply. in san francisco, sergio quintana, nbc bay area news. >> sergio, thank you. >>> south bay church is rejoicing tonight after a judge says it won't have to pay expensive fines for breaking covid restrictions. why the fight between the church and county isn't over just yet. >>> and we

and you have howard schultz back at the company he is going to stay on the board. is interesting. trade's at the low end of the historical range i like that one a lot. >> do you own airbnb >> well, airbnb certainly, and amd. so those are the other two airbnb is telling you that the pent-up demand that we all have seen post covid is starting to moderate right? and so the room night numbers came in a little bit less than expected, and they guided lower on room night, again, that demand is actually waning a bit. so it's not a disaster, but it's like, what's the normalization sow h so you have to see how the stock trades i think you have to see how it trades and let it stabilize. i have opened expedia in the past, and i like that one. amd is a disappointment only because we thought they were taking a lot more share from intel, right intel report ed a disappointing quarter. the one positive i thought at amd was data center. it grew 15% in revenues sequentially broadcom trades at 13 times. i just think there are other semi-conductors that are cheaper that are worth payin

shares of starbucks are flat since howard schultz returned. now up more than 15% since july 1st. >>> home depot named ted decker as chair of the board. he replaces craig menear home depot announced a new $15 billion share buyback program. those announcements come days after the retailer second quarter results showed strong performance as companies deal with high inflation. >>> let's get a check of the overseas markets with joumanna bercetche from london. good morning, joumanna >> plea lis melissa, we have th stoxx 600 down 1%. you can see all of the indices trading in the red ftse 100 in the red. better uk retail sales in july the focus is on germany. you see the dax down .75%. wholesale producer price numbers coming in at 37% year on year. that is a major concern for german industry. one of the reasons why investors are so focused on the growth sdw outlook and talk of rehe cerece. we are seeing major moves in fixed income the 10-year bund is at eight basis points higher. at the reason i'm picking on that is when the spread between the two wid

we've talked a lot about starbrooks, howard schultz saying no reduction in consumer spending we've been seeing, yes, and you can see this has been echoed by other people chipotle had a similar comment the majority of our customers a higher household income consumer, and we've seen their frequency increase and potentially not experience some trade down but to the extent chipotle and starbucks are higher end consumers, that's certainly true mcdonald's was not so sanguine about this, a couple weeks ago july 25th, we are seeing some trade down we're seeing customers specifically lower income customers trade down to value offerings and fewer combo meals. so the obvious take away, and we saw this with simon property group higher end holding up, lower end's not. but this is a really complicated environment. i want to put up what david gibbs had to say, and he went onto describe it isn't just quite as simple as just saying the high end consumer is still holding up on the low end, that covid supply chains, china has really made this a very, very difficult environment. he said it was the most com

howard schultz is back at the temporary home of starbucks. but i will bet with him and not against him. we will see how much progress we make when they report tomorrow night. we know people are traveling. the clash of traditional versus 21st century. i think both are doing well but air b&b can turn its huge cash flow into actual earnings and it doesn't. the stock -- warren buffett see with oxly? judging by the heinous action of the oil stocks, one of the worst i have ever seen, it should be something long-term but oxly -- good number tomorrow evening because it's prices -- one of the most enduring themes of the covid era was addiction to video games. i bet they would do well. out of style wall street fashion show more than i have ever seen. jetblue tells us how to do it. and no one can explain -- spirit airlines. is it really competitive? i admire them but i'm confident the justice department will try to block t. jetblue refuses to stop. i know they will try to solve the antitrust issue by trading to some other company but that will not be en

the group is seeking back payments for union workers and for interim ceo howard schultz to read a statement to workers. >>> and meta platforms and twitter looking to take down accounts according to the report, the duo pushed pro-western themes. this includes posts critical of the russian invasion of ukraine. this was over a period of five years which did not have widespread impact. that's the latest. wilf, back to you. >> frank, thank you so much. see you later in the hour. >>> let's get back to the hour now and the attention to the jackson hole summit. my next guest saying jay powell has a difficult issue of thread t threading the needle we have david nelson with us david, thank you for joining me today. i'm interested in the notes if i refer back to them you say the markets are looking for a catalyst is that the markets to keep going higher or the other way around are they looking for a reason to correct if they get hawkishness from jay powell? >> it could be either. this week was all about jackson hole they are looking for direction i think the rhetoric will be tough. even neel kashkari,

. >> charles: to your point how rough it is, that's why howard schultz has come back. the u.s.oxy for the rest of the economy? are we hooked on everything else the way we're hooked on that coffee? >> i don't think it's the same type of proxy that walmart is when people are trading down and not able to buy the same amount because they're forced to buy food. we found out they're trading down in terms of other items that they do not have to buy. the people that are choosing to go to starbucks, they say they have to but they don't. clearly it toes speak to the split in how inflation impacts people at different income levels. some people can still afford it and they are here in the u.s. >> charles: great point, connell. coming up, why the take down of an al-quaida leader is raising new questions. what about taliban harboring these guys. frank is a fan of fast. he's a fast talker. a fast walker. thanks, gary. and for unexpected heartburn... frank is a fan of pepcid. it works in minutes. nexium 24 hour and prilosec otc can take one to four days to fully work. pepcid. strong relief for

. >> is this from howard schultz himself?is pushing back against the union and this career nlrb wo w worker acted as a whistleblower and they want to suspend the mail-in ballots nationwide and this can impact 35 elections so far that have been ordered or in progress and there are seven more stores waiting to schedule elections and that's a fair amount of stores that could unionize in this time if the nlrb moves ahead to investigate this. >> fascinating it will hopefully be a netflix series at some point thank you, our kate rogers following our story. unionization may not matter as much to investors as the once red-hot trend shows further signs of cooling and we'll talk to the cio of sustainable investing of blackrock on "power lunch" which begins right now. ♪ ♪ >>> kelly, thank you welcome, everybody, to "power lunch. i'm tyler math soeson and here' what's ahead on monday walmart versus target. both report earnings this week and both coming off warnings about the impact of inflation and which company has a better handle on in

starbucks ceo howard schultz jolting investors in june. >> it's hard to be optimistic unless there isontrol. >> reporter: while the inflation rate is slowing, slightly, high prices are still a major issue for everyday consumers. the cost of food at home up 1.3% in july, while coffee nearly tripled that figure in the same month. businesses like brittany's hoping high prices don't grind away demand. >> coffee as a whole continues to grow and we're seeing sales increases as a result. what's better than a warm or cold cup of coffee? >> reporter: a lot of people, lindsey, may be thinking i won't go out to the coffee shop. i'll have coffee at home. 7% to 9% increase for these coffees but what about instant coffees, keurig cups, so many people have at home they're up 17% at home coffee in general up 20% so basically double the increases that we've seen here. so now you're learning at this point in time you are not latte to the game, soak it all in, let that sort of brew and per clat percolate. i'll stop with the coffee puns. i had no idea, i think people might be surprised. >> save us from t

interim ceo howard schultz also leaving starbucks at the end of the calendar year. we could get an update on the ceo search at the company's annual meeting next month. starbucks town 1.5% today. over to tyler mathisen now for a cnbc news update >> kelly, thank you very much. here is your cnbc news update right now. the nation's largest employer, walmart, expanding its abortion coverage for its 1.6 million employees. according to an internal memo and effective immediately, walmart's health care plans will cover abortion services and travel costs for employees and their family members who are insured through walmart when the pregnancy presents a health risk to the mother. >>> the u.s. government is setting aside doses of the monkeypox vaccine in advance of more than a dozen planned pride parades over the next few months 50,000 doses will be allocated based on factors like the size of the event and risk of the attendees. official say they are sending up to 2,000 doses to north carolina for a parade this weekend. >>> and after a summer of flight delays and cancellations

howard schultz, ready to get the best from that rose. bluebottle, or whoever you are selling. that rose cannot keep good people. and that's the reason why dutch prose isn't making more money. i think that's the job part of it. they had to find out what level of interest rates are fear mongering. >> would you agree that the effect on toll comes first? the effect on job hopping comes later? it will come. >> that's what they are hoping for. when admission to cash card, he's not granular. this is the way he should say it. i watch them in words from last night. brothers are talking about things. it's also called homework. they were saying that they had a problem. we are getting there, doing the right thing. companies are telling us what's going to happen. so far, it's going our way. before you think you have to do 7575, companies are feeling the brunt. we are getting there. i love an appointment. >> you have made no secret of the fact that you want to become chair. >> i thought i would get treasury. >> it didn't work. >> do you know what i have for my uppers? >> nothing. >> how abo

food and gasoline have already eaten into discretionary spending howard schultz jolting investors inhe inflation rate is slowing slightly high prices are still a major issue for everyday consumers the cost for food at home up 1.3% in july while coffee nearly tripled that figure in month businesses like brittney's hoping high prices don't grind away demand. >> coffee as a whole continues to grow and we're seeing sales increase as a result what's better than a warm or cold cup of coffee. >> reporter: for those thinking i'm going to skip the coffee shop for now, drink at home, save money that way. we talked about the fact coffee is up 7 to 9%. instant coffee like these cups are up 17% at home coffee up more than 20%. so more than double. so we're seeing people who work from home, come to the coffee shops, enjoy the experience, spend the day here and spend less money than they would brewing on their stove let that percolate, simmer for a while i'm not going to say something cheesy >> we're proud of you sam. you've gone full "today" show now. >> i was going for a record. >> i love it >> a

we know howard schultz is back involved so i think there are a couple of areas within discretionary that be part, but you want to be very selective. >> is there any part of tech you want to touch? is there any part of you that looks at zoom at this point and says it's come down quite a lot. >> no. >> maybe there's value here >> no. >> i mean, not zoom, because they benefitted from stay at home, right? it's kind of obvious in retrospect that's not an area i want to play at this point in time what i'd like to do within tech is do a barbell. i am underweight tech. you know i like ibm on the value side and ak sen tour on the growth side. s so i think there's also cyber security they had billings of 34% and the stock is down 17% from its recent highs so there are pockets within tech that i like. i'm suffering a bit with meta, as you know, but i think you can pick your spots. i think you can be very much disciplined on value, though, valuations here. >> steph, i want to thank you. and i want to thank you in particular because i think we probably hit maybe a dozen names in the course of maybe t

the management and labor, if you will starbucks and amazon are examples of this you know, howard schultz said it is hard to embrace the idea of the union. he is not sure the union is in the best interest and thinking about the company and potentially the shareholders how do you get there is there a way >> listen, here is my advice seek and i quote the responsible approach to business and to labor and quality of life issues second, common sense it simply is irresponsible to increase wages by 30% when you can only increase prices by 5% one last point because we're talking about language in reality, more people are suffering today because of inflation than benefitting from the rise in wages. 72% of americans, incomes are not keeping up with prices they are genuinely suffering almost 1 of 4 have trouble paying bills monthly because of rising prices. the language simply sets the tone in the end, the policies have to follow >> frank luntz, great to see you and get your perspective on how to use language during these trying times. >>> when we come back on the other side of the break, newsmaker