he ecommerce business u.p.s. is vocal about cutting costs and sweat assets what do you expect when it comes to margin, but when it comes to volume you continue to see the consumer spend and a shift from services back to goods. >> so, i'm not sure we will see that yet in this quarter for u.p.s. i think volumes are under pressure with the weaker economy and also because of the boo bookings shippers saw that deadline without a deal and they may have started to push volume away from u.p.s. this may start to creep back i think that the overall volume will be challenging for the macro. on the margin side, we are in the mid 10s. we think that more importantly the story will be about the setup from 2023 to 2024. the company is giving us a new target the early part of next year >> to put it in context, 10% margin is good for the ground industry for u.p.s. as they searchi for the double digit contracts. and this is important to note that the teamsters have not ratified the new deal yet. how do you see this impacting eps fo

u.p.s. big new deal with the teamsters union. u.p.s. driver with tenure making $170,000 a year. with benefits, good for them by the way, love my u.p.s. driverer time shows up. >> because economy is doing well. >> comes to my house not a stock you like huge cost increase for ur.p.s., butty like u.p.s. >> waiting for this. expecting it didn't know the actual numbers numbers came in. reset numbers lower, and now it's out there that's fine. going to cost them a lot but meantime, just reported earnings they had better u.s. package growth, the economy. better pricing and productivity and efficiency measures underway stabilize margins and move higher gradually when you have a good top line and better margins, positive operating leverage and getting credit now 17 times forward, massively underperformed, fedex. almost 40%, 50% year to date and ceo. not betting against her. >> take a huge unknown, now a known-known. not a known-unknown. bring up guys, three-year chart home depot another company you like interesting take make a bear case easily. higher rates, but also say wait a minute no

. >> u.p.s. delivers more than 18 million packages per day. >>> let's give you a live look at fourth and king in san francisco where demonstrators are gathering right now to demand safety improvements. you see a very large group gathering right there. this follows a crash that killed a four-year-old girl in the crosswalk. the little girl's father was also badly hurt in the crash which happened a week ago today. there was a giants game that night and this evening big crowds are already gathering for a k-pop concert at oracle park. demonstrators are saying the city needs to make a busy intersection and others like it safer for pedestrians. >>> mayor london breed has already announced safety changes. the city will change the signal from a green light to a yellow arrow, reminding drivers to yield to pedestrians. >>> and the faa has had enough close calls that the meetings will be announced. there have been several near collisions, including one between a southwest jet and a cessna in san francisco. t

. >>> u.p.s.he delivery company missing on revenue due largely to the impact of labor negotiations our next guests maintains his buy rating on u.p.s. with $212 price target let's bring in amit, transport analyst with deutsche bank welcome. good to have you with us. >> thanks for having me. >> the revenue miss, i guess i'm perplexed that it would have something to do with the labor negotiations because that contract really hasn't even gone into effect yet. but explain why the labor negotiations affected the numbers today. >> well, there's two real differences here one is with respect to the second quarter you're absolutely right. the number of packages per day that u.p.s. handled were down about 2 million per day. about half of that related to diversions that the customers implemented as a result of the risk of a strike. >> ah. >> in early july. >> gotch ya. interesting. interesting. that's why you do what you do and why i do what i do so, that gets out of the way let's look then deeper down the fi

u.p.s. workers ratifying a massive new five-year labor deal that include big wage increases and improvements to work schedules. according to the international brotherhood of teamsters, the contract passed with more than an 86%. that's the highest in the company's history. this preliminary deal reached last month to help avoid what could have been a crippling strike to u.p.s. and the entire u.s. economy. >>> goldman sachs is cracking down on so-called summer fridays. according to multiple reports, the investment bank is making a renewed push to enforce its five-day, in-office policy despite pushback. in a statement goldman says, quote, while there is flexibility when needed, we are simply reminding our employees of our existing policy. citi and jpmorgan chase, meantime, have been working to enforce their three days in office policies, frank. >> it's a thing. >> yeah. >> you and i, we're going to be here all week. >> we're here all week. >>> turning back to the broader markets which have been

u.p.s. and teamsters have ratified a new five-year contract.. teamsters now says the union's roughly 340,000 members nationwide voted 86% in support of it. the deal promises higher wages among other improvements, averting what would have been the biggest single employer strike in u.s. history. >>> threads will soon roll out on line. the meta version of twitter will be available for people to access on their pcs in the next few days. it launched last month on mobile devices but saw a drop-off in engagement in the following weeks. in addition to the web version, the companany also plalans to a search function to the app. >>> and ththe ill-famemed fyre fefestival is s back, and d acc to orgrganizers ththe first babf 100 0 tickets are alreadady sol. during itsts first runun in 201 ththe festivalal was billeled a luxuryry event, bubut instead d customers stayed in disaster relief tents and ate cheese sandwiches. foununder billy mcfarland serve time in federal prison for his involvement. fyre festival two has not announced dates, a location, or headl

love it,t, or your money b . >>> u.p.s. drivers will average is $170,000 in pay and benefits the deal was struck with the teamsters union last month they had authorized a strike if a new contract couldn't be reached. voting began last week, and it continues until august 22nd. the tentative agreement covers some 340,000 workers >>> now to the effort to keep children from going hungry at school during the pandemic, congress passed free school meals for all kids but that has expired, leading states to figure out what to do next steven romo shows us how massachusetts just got a major win. all right pain of hunger can make learning much harder, which is why massachusetts is joining a small group of states signing on to a universal free school meal program >> it's a big relief, especially for families nobody wants to see a child go hungry and unfortunately for some of our children, that can be the only meal that they receive during the day >> reporter: governor mara healey signing the budget approving that program >> so their bel

u.p.s. is now cutting its full-year revenue and operating margins outlook. u.p.s. is down about 5%. transportation etf is off about 1%, as well. then there's a couple of pharma/health care-related movers both have ties to the surge in the popularity of anti-obesity drugs. we'll start with the earnings around eli lilly, which is up around 8%, around 360,000 shares of volume. the drug maker handily topped estimates for revenue, thanks in large part to key drug franchises like its diabetes treatments also its anti-immune disease treatments for mounjaro, it's about the potential it has an as an anti-obesity treatment it's still in the approval process for that eli lilly up 8%. in the same vacein, check out what's happening withvo nor nordisk. it said a late-stage trial of its wegovy obesity treatment that it reduced someone having a major cardiovascular event like a stroke by around 20% that is prompting some investors to look at the potential expanded future use case for that drug. both novo and eli lilly yb they've been powered by a lot of the optimism around anti-obesity drugs and th

top picks in the transports, bullish on the company's pricing powers and tailwinds stemming from the u.p.s. contract negotiations and the closure of yellow. our frank collins is watching this. frank, i heard you talking about it with the guys on "squawk" today. really looking at sort of the fee increases and what's usual and what's not usual. >> fedex moving higher right now, carl, on the back of that note from citi, where citi, those analysts basically spell out how fedex is a direct beneficiary of a lot of turmoil in the transport space, you hit on one of the big ones right there, that uncertainty around the u.p.s. team pushed a lot of business away from u.p.s., possibly temporarily, but fedex was a direct ben fishefbenefici. 5.9% for the second straight year. that's proof that demand for capacity, when it comes to ecommerce is very strong. in prior years, that increase was about 5%, 4.9%. so retail sales have been a bit soft so far this year, but the consensus is we still see growth for ecommerce this holiday season. just a short time ago, we were showing you the general increases that

and then u.p.s. did the last mile. >> you did say, at the conference, if you can step back , we are getting that fix as well. what was the step back? >> our service did go back a little bit. we promised them this service and we have done it. we are very confident in that. it gives us the foundation to talk to our customers about building us into their long- term supply chain needs. >> i think people might listen and say, so what. they do not realize that in the old days, that was not as if weren't. if they got it to you, good. they got it on the truck. good. it is not like that anymore. you have to beat them with service. >> we are going to beat them on service. cost is relative on the truck. we are more sustainable. we have that capacity relative to the truck. we will layer onto that the best in class consumer for our customers. our strategy is built on where markets are headed. >> if i was a politician, i know i could score points from the railroad. listen, you have to put more people on the train.

u.p.s. workers, they're not delivering packages from home. >> very difficult. when they figure that out, you know we're getting somewhere >> exactly thanks >>> when we come back, gig workers beware a new tax law could impact payments on services like venmo, paypal or airbnb you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. ( ♪♪ ) ( sfx: people cheering ) ( sfx: stock exchange bell ringing ) ( ♪♪ ) ( ♪♪ ) ( sfx: people

workers at companies like u.p.s., gm and verizon are pushing for higher wages.he question for investors now, how will those costs impact earnings? frank holland has that for us. hi, frank. >> hi, leslie. $30 billion in new money, the teamsters say they gained this their new u.p.s. contract the union will vote on tomorrow, just one of the labor deals that have investors concerned about wage inflation. that includes uaw and autoworkers, pilots at a number of companies like fedex, telecom workers at frontier and the teamsters say they plan to unionize amazon workers. data from nationwide shows inflation has not stopped equities from rallying. that spending power gradually declining while you see the broader market generally moving hi higher. >> you see more of the margin deterioration has been on a lot of the supply chain issues that hasn't necessarily been on pure wages. the wage growth has been a net tailwind, i think, for earnings. >> according to research from the san francisco fed, wages and benefits have increased around 3% since the start of the pandemic. if

. >>> it is official, today u.p.s. to ratify new contracts with the labor union avoiding a strike that would have been the biggest in 60 years. the deal will give workers a pay raise and creates new full-time jobs to help with staffing. it brings work place improvements including air conditioning for delivery vehicles. martin luther king day will be a holiday for the first time. >>> one of these things is not like the other. an unusual looking animal is turning a lot of heads. we're going to show you next. >>> she's spotless, and that's why a baby giraffe is getting the spotlight tonight this is the giraffe. she's at a zoo in limestone, tennessee. giraffes usually have tan skin with brown spots but this baby is solid brown. zoo keepers believe she's the only spotless giraffe in the world. they say it's a good thing she was born into captivity because they use spots to camouflage in the wild which would have been impossible for her. she's also missing a name. the zoo is asking facebook followers to help them pick a name

we saw american airlines pilots get a huge increase this week, and that's on top of the u.p.s.se last month and so, we see wage pressure continue to push up. that, along with full employment, you know, means we're going to continue to see inflationary pressure, and i think the high end consumer then sort of inter preflts that as as continued interest rate pressures. >> bill, let's go the other side of the coin. dollar general's at a multiyear low. dollar tree -- these are typically stocks that should hold up in this environment and they're trading awful. more importantly, the commentary is worse does that mean anything? >> it does and really, if you look at dollar tree and tear that apart, actually had reasonably good growth on the top line, but because of their shift that they're seeing into their consumable business, again, which is needs and not wants, that's a lower margin product, and it puts pressure on their margins, and it's really hammering their bottom line. and they're seeing that continue they also cited shrink, along with target and dick's and several others, so, y

for u.p.s. workers, strike averted.nion has ratified a new five year contract agreement that delivers significant pay raises and other benefits to those workers. here's a breakdown of the deal. it will improve work conditions for 340,000 package handlers in the union delivery drivers and other full and part-time workers. it will ensure that drivers will have air-conditioning and all new vehicles and it gets rid of any forced overtime on scheduled days off and creates thousands of new jobs. gianna? >>> well, new this morning, the writers guilt of america is responding to the movie studios' new proposal to end the strike. studios released details of the offer last night touting it as a comprehensive package including offers on generative ai and data sharing and residuals but writers union says that counteroffer failed to sufficiently protect writers. it was first presented to them by the way nearly two weeks ago. meantime actors have been picketing for over a month now and yesterday they held a national day of solidarity

all united states are on u.p.s. and the teamsters union. >> you can catch a movie this weekend for just $4. >>> today's the last day teamsters can vote to ratify the deal reached with u.p.s. if a strike were to happen it could upend the holiday season and raise shipping costs across the board. >>> the roman catholic archdiocese of san francisco has filed for bankruptcy. the petition halts pending and future lawsuits, allowing time to propose an alternative resolution to survivors. they're considering bankruptcy as they navigate sexual abuse claims. >>> this sunday, movie lovers can celebrate cinema day with $4 movie tickets the fan favorites including blue beetle, barbie and oppenheimer, it broke single-day attendance records last year with over 8 million viewers, for a buck, in this inflation environment i'll take it. >> amc a-list, but $4 you can't beat that. >> i like it. >> what's your snack of choice? >> you know, i always like the chocolate-covered raise sins. the raise sinets. >>> coming up, the fd approves a

strike averted for u.p.s. workers.eamsters union has ratified a new five year contract agreement that delivers significant pay raises and other benefits to those workers. >>> this is a breakdown of the deal. it will improve work conditions for 340,000 package handlers in the union. delivery drivers and other full and part-time workers. it will ensure that drivers will have air-conditioning in all new vehicles. it gets rid of any forced overtime on scheduled days off. and creates thousands of new jobs. gianna? >>> well, nicole, new this morning, the writers guild of america is responding to the movie studio's new proposal to end the strike. the studios released the details of that offer last night. touting it as a comprehensive package. it includes offers on generative ai, data sharing, and residuals but the union says that counteroffer failed to sufficiently protect writers. it was first presented to writers nearly two weeks ago. meantime, actors, well they've been picketing for over a month now. and yesterday, they he

seen is some very tough labor negotiations, big union wins i think there's -- the average driver at u.p.s. will make $170,000 a year. >> you left too early, guy >> i paved the way >> you are considered a hero >> thank you, appreciate that. >> but that just shows you how this could still be an inflationary force you think the fed has to be, then, harder than we may even think given cpi, just because wages will be so sticky? >> it's a really good point, melissa. i suspect the fed looks at that factor and near shoring or onshoring or whatever, and says, these things all boost inflation. so, that run rate is going to be higher than it was back in 2018, or 2019, so, we have to be more vigilant and keep rates higher for longer than we did then. but the problem for jay powell is, when he makes that point, people don't believe him the bond market says, well, if you're done hiking, surely the next ease is going to be pretty soon, and you see a big bid for duration it's a really tough message for him to get out >> how about the dollar in the mix on all this? if the fed is seemingly done, they've at

. >>> and u.p.s. workers deciding whether to launch a strike that could bring the u.s. economy and a lot of your package deliveries to a crawl. >>> artificial intelligence will change the way people work in the future. how one bay area company hopes to eliminate time-consuming tasks. >> it can allow them to make decisions and do more which hotel? ah! did somebody say “which hotel?” i'i'm great atat this. dance to y your favess inin the spa-l-like bathroroom! or enjoy l local craftft beers, withth breathtakaking viewss atat the cambrbria. >>> several of the 18 people indicted alongside former president trump in georgia have already turned themselves in the head of the friday deadline. that includes attorney john eastman who worked with trump on ways to stop electoral ballot counting. the biggest name on the list of co-conspirators will head to the fulton county jail on thursday. >> reporter: attorney john eastman, one of the alleged co-conspirators in trying to overturn the 2020 election in georgia was processed at the fulton county jail on tuesday and released. >> i am

: for now the district leaning on short-term fixes like cutting stops, even tapping delivery giant u.p.s. for help streamlining routes and soon releasing an app letting parents track a bus' location. similar scrambles under way coast to coast with a staggering 92% of school leaders nationwide short on bus drivers. >> it has now reached crisis levels. it was really exacerbated by the pandemic >> reporter: back here in louisville, today actually marked the start of a staggered return next week high schoolers will also come back testing this district even more lester. >> maggie vespa, thank you. >>> in 60 seconds, a pioneering treatment for people who've lost vision from an eye injury the remarkable way it works using the body's own cells right after this >>> we're back now with a potential medical breakthrough giving new hope to people with blindness. a study just out on an experimental surgery to restore vision to one damaged eye with stem cells from the other. kristen dahlgren explains >> clear to land >> clear to land >> reporter: nick kharufeh always dreamed of being a pilot. >> i figu

>> u.p.s. played pickle, and i've got to tell you, i play contact pickle, so i totally understand what you're talking about. no, i play contact gardening no, this is -- we had this problem with unh, and they're all recovering bruce did a very good job, the ceo of humana. those are conservative numbers i was worried this morning, because this has become one of those things where everybody just says, look out, everyone's back doing operations and the raw -- their numbers are going to be bad. the numbers aren't bad so, i feel very good about it. i think it's the beginning united health led the group. it's the group is not expensive .good numbers. >> yep swings of consumer behavior. generac is taking it on the chin this morning, jim, on this miss, although revenue was ahead they do cut the yearly guide lower residential sales. it's volatile. >> it's crazy. one of the things -- and phil is so right i mean, when i was out at ford, i kind of wanted the story to be more than just "e," but generac can b

. >> reporter: they're leaning on short-term fixes like cutting stops and tapping u.p.s. for help streamlining routes and soon releasing an app letting parents track a bus' location. similar scrambles under way coast to coast with a staggering 92% of school leaders nationwide short on bus drivers. >> it has now reached crisis levels. it was really exacerbated by the pandemic. >> reporter: back here in louisville, today actually marked the start of a staggered return. next week high schoolers will also come back testing this district even more. lester. >> maggie vespa, thank you. >>> in 60 seconds, a pioneeeering treatatment for peoplele who lost t visionon from an e eye ininjury. the way itit works usising the e body's ownwn cells right afafter this.. that s starts workrking in 30 miminutes, whilile other alallergy spraysys take hoururs. withth astepro's's unbeatablby fast allerergy relieff you cacan astepro o and go! withth astepro's's unbeatablby fast allerergy relieff (vo) for overer 50 yearss puririna cat chohow has beenn helpining cats feeeel at hom. wiwith trusteded

what is the role that you're playing in some of these negotiations >> we have seen that the u.p.s. a tent tich agreement we often see that collective bargaining process is not always pretty as it's going through people say things during the process, but as we've seen in a couple of very high-profile, big examples, the collective bargaining process works so, the u.p.s. and teamsters, tentative agreement, affecting 340 how to working people. on the west coast, 29 ports, affecting 22 how to workers also reached a tentative agreement and for uaw, that conversation, they're still at the bargaining table and trying to resolve and a lot of these are tough issues. they're grappling with things like workers have worked through a pandemic many employers have seen record profits, and those union employers coming together to try to figure out what is a -- what does a good job look like? how are we going to do right by working people, build a stronger industry, things over the long-term, all of those things are happening at the bargaining table, and we are seeing good results. the president bel

u.p.s. in 15 days conceded to what the workers wanted.t better wages, better security, better benefits, and the car makers will have to deal with that. mike, really, what is the price return on gm and ford in the last ten years almost nothing on the total return, you go ahead a different, maybe up 20%, 30%, but that's really is. >> the stocks almost trade like equity stubs on the big debt load and maybe some option value on the ev market to broaden it out to the overall tape here. the indexes seem inclined to go down and do some testing what does that really imply in terms of the velocity? >> i think the buy the dip mentality should be in place, and will be in place for me personally intraday today, energy prices hit their high for the year. they reversed. that should have been good news, but the treasury yield washed that away, if you will we're thinking about jackson hole now, what is the guidance going to be there? remember what it did to the market last year, so, again, halfway through the third quarter, which is a seasonally weakest

u.p.s. down 1% for the year. robert, back over to you. >> frank, thank you.d the price increase of 6%. how much higher is that about in line with what they do annually? >> they do have a price increase annually. 6% is about what they had last year as well. technically 5.9%. but i don't know if it is always regularly scheduled. certainly depends on demand and over the last few years we have seen not only accelerated e-commerce demand, but more demand for what their specialty is, ltl trucking, the same area that yellow operated in. >> so expensive to ship anything. frank, thank you. >>> our next guest says she expects the market volatility to continue into october. even though she remains positive on stocks for the full year. an area of the market she's concerned about, the banks. to tell us why and which stocks she currently likes, let's bring in mary ann bartel, chief invest strategist at sanctuary. great to see you. >> great to see you too. >> i guess there is one way of framing what we have been going through here as incredibly strong market through july, t

u.p.s. and teamsters did a solid job for members which is what they are supposed to do. now we're looking at uaw negotiations even if you are not union and you see the 10% that the pilots got, you will look for a better ben papefits package. we have massive wage gains right in front of us >> you are looking forward at the forward impact is the issue revenue or margins or earnings? all three? what is the impact being and what is the impact to the market with the higher wages? >> that is a great question. it will not be no impact it will have an impact what will it be? higher earnings? that could be at the cost of higher inflation at the least, it will be infla inflationary the worst case is it is inflationary and it hurts earnings i'm not sure higher wages have ever been a positive for corporate earnings in fact, a strong correlation with the cost of wages and stock prices. >> fair point. what are you looking at with opportunities? you are looking at the xli big one up xli up 17% in the past month >> it had a strong run we talked about it here. i think it is a beneficiary

it happened after the u.p.s. contract talks and yellow.rket. >>> and time now for your global briefing. we begin with inflation and a key german state inching up ahead of the country's overall figure later today. monthly pricing figures in energy, clothing, alcohol, and tobacco driving the uptick. meanwhile food and health and beauty products offset a larger global increase. toyota global sales grows by 8% for the sixth straight increase. they're also reporting a 15% rise in global production. that's one day after shutting down more than a dozen of its domestic facilities due to a computer malfunction. >>> and the city of guangzhou is easing its mortgage rules amid a slumping economy. the move, the first by a major chinese city, allows homeowners to take on preferential loans that were previously limited to first half time buyers regardless of their credit records. >>> ahead on "worldwide exchange," the one word that every investor needs to know today. >>> but first we're watching hurricane idalia. it's a cegatory 4 storm set to make landf

we have results from u.p.s. first anniversary of the u.s. chips act. thursday has alibaba reporting the week rounds out with ppi and consumer sentiment we have the s&p and nasdaq with the worst performance since march. there are issues for investors to consider in the days ahead. the biggest reports this week are inflation data and cpi and ppi. let's bring in katrina dudley. >> thank you, frank. >> the fitch downgrade is a fact factor here. what do you expect to see? >> i think what we are seeing is a real interesting balance with short term the ceos were concerned about the short term in the economy you look at the fed and michelle bowman talking about the resilience that is a strong positive. people are keeping their jobs. you have the housing market as well that will offset the concerns you are speaking about with the short term the positives can overcome the negative >> interesting you don't see another down day in the market. you see a rebound from the fitch downgrade? >> exactly the fitch downgrade with on

. >>> potential strike by drivers and other workings at u.p.s. has been averted . 86% voted to approve the new contract. >> and they will also address the safety concern that many of the delivery vans don't have air conditioning. the contract will be retroactive to august 1. >>> still to come, after a orde including six children have been rescued from a dangling cable car in pakistan. >>> and plus a warning to avoid mosquitos because they could spread a rare virus. >>> and india about to potentially land a spacecraft on the moon. we'll have a live report. same a. almost is just another word for not as good as mine. save 50% on the sleep numbere® limited edition smart bed. plus, 60-month financing on all smart beds. shop now only at sleep number®. how do i love thee? ...let me count the ways. ♪ love can get a little messy... good thing there's resolve. love the love. resolve the mess. >>> i had the option to get transported, but i decided to stay because i knew my baby was already coming out. nurses just ended up using like their flashlights and p

cpi thursday, earnings this week, u.p.s., disney, baba, under armour, roblox and more.asdaq looking to rebound from four-day losses as investors digest conflicting fed rate hike commentary >>> plus back off the worst day and week of the week, the company reportedly looking to boost its efforts in a.i >>> and elon musk and mark zuckerberg seemingly agreeing to that cage match, but some hurdles still ahead. >>> let's begin with the markets. the s&p, nasdaq, as we said, coming off their worst week since march, jim that reversal friday didn't feel great. >> oh, my. it took your breath away and i was watching them just saying, what happened? is there some event? did something happen that was exogenous? but then again, look, let's remember, bonds having a nice move today they were down 36. now they're only down 11 i thought that friday was one of those days where people just said, okay, we've had a great year now, let's just sit here and sit on our hands and that was what i was thinking to start my show tonight is to just sit on my hands, and i may do it. i just felt that we'

administration next on "power lunch," we'll get trade on some of the biggest earnings movers, amc, u.p.s ready i'll join him after a break. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. ♪ >>> good afternoon, everybody. welcome to "power lunch. alongside kelly evans, i'm tyler mathis stocks shrugging off yesterday's rally. a big downgrade u.s. banks from moody'

u.p.s. and caterpillar, all are above their 50 days, 200 days, up an average of 12% year to date these are the bank stocks. 97% of the kbe holdings are above their 50 day these are cyclical areas of the market they've taken over the leadership i think they're really important. i think they're all a little bit overbought short term. let them calm down a little bit and cool off and let's see where things stand this could be the next great buying opportunity of the year if that's what ends up happening here i don't think the charts break down i think they need to gather before we get that next breakout we're in the in-between moment xli, xle, kbe, cyclical areas of the market that are the new leadership >> nice shoutout to your company. liz, do you want to shout anything out is it meaningful we see bond yields go above 4% on the ten year and all of a sudden things working all year long taking some pretty steep declines right now. >> you're seeing companies with good earnings have sell-offs in t

for now, the district leaning on short term fixes like cutting stops, even tapping delivery giant u.p.sn. similar scrambles underway coast to coast, with a staggering 92% of school leaders nationwide short on bus drivers. >> it has now reached crisis levels, it was really exacerbated by the pandemic. >> back here in louisville, today marked the start of a staggered rip turn. next week highschoolers will also come back, testing this district even more. >> thanks to maggie for that report. that wraps it up for me, i'm yasmin, i'll be back in the chair tomorrow at two pm eastern. simone starts now. now. good afternoon, you're watching simone. i am charles in for simone sanders townsend. former president trump is expected to charge -- turn himself in expected t >> as early as thurs. he is facing racketeering charges for his efforts to overturn the 2020 election aid at georgia. from one place trump won't be next week, on the debate stage. the republican primary challengers will -- and what all his legal and political drama means for the 2024 election and democracy itself. plus, some bodes in

that said, u.p.s. workers do approve the deal there, five-year contract.almost 350,000 employees. we've talked about some of the comp that's going to come out of that and i know you're worried about a strike. >> u.p.s., stock was at $180 and the market has spoken. they think carrollton gave away the store. fedex -- it's a duopoly and they can play against each other. i know ford just put out a very expensive car, a coupe. i'm thinking about going to the vegas formula one. i'm not sure yet. but ford is -- that's, you know, that's got strike written all over it. if you look at a chart since march, you will see the peak was when people said, wait a second, this new uaw leader is not like any leader we've seen in a long time. he actually wants to not cooperate. he's not a cooperator. he's a rabble-rouser. >> yes. >> from the days, david, when i was at spartacus workers league, this is the way we played it. probably thinks spartacus is something with -- >> kirk douglas, right? >> great book, by the way, "ragman's son." he talks about the making of that movie. >

. >> everyone thought when that u.p.s.eal was signed, it was going to be incredibly good news well, i got to tell you, if it's incredibly good news, then what the heck is u.p.s. doing at $172 >> let's get to rick santelli. busy morning for data. hey, rick. >> yes, carl, and it's not only out. it's out and up, up and away 1% is our read on july industrial production. that is the second best read of the year outside of january when it was only a whisker better at 1.05%. so, with rounding, basically we're right there, and on utilization rates, well, a bit of a different story yes, it's better than expected at 79.3, but it's only the best going back a couple of months when it was 79.4 in may. this has been on the light side. as a matter of fact, in the rear view mirror, we have 78.9 and it now becomes 78.6 and that actually is the lowest read going all the way back to september of '21 so, yes, even though we bounced just a bit on utilization rates, a very small bounce at that, you see, though, that the production numbers being

u.p.s., the teamster contract and that kind of settling in and merck because of the ten stocks that -- the ten drugs that we saw today with respect to the medicare negotiation. so, we had some volatility around those. we didn't sell out of any of the positions. but we wrote calls out of the money and we're bringing in option premiums that are annualizing out at 9% to 10%. even if we're seeing a stock market that is not moving, where we're owning stocks that aren't moving and most of the value names, we're trying to fight for every penny, even in a market where you're not seeing a lot of movement and there is a lot of people on vacation it is still august. but back to business. we got a lot of data this week, september starts on monday. time to get back to work, right? >> let's talk about apple, a stock moving up about 2.5% today. almost 185. you added a little bit to your position if not buy it back. what are we thinking about it here? we got the announcement today of the new iphone event in a couple of weeks. what is your thought? >> i think the stock is fairly valued. we went and wr

parties came together, and over 13 months, and negotiated a tentative agreement, and we saw it with u.p.s. and teamsters, and many people were worried about how that would land, but they reached a tentative agreement, and that means that the workers will strike if they are not getting what they believe in at the table. it is what the president and i believe in, and that is collective bargaining, and building in resiliencies for the long term, and some of that is the ability to strike. >> acting secretary of labor julie su. kate. >> donald trump is headed to alabama to hit the campaign trail, and some say that trump was irked and pissed off after the court appearance yesterday. right now, the attorneys are working on fighting the criminal charges stemming from the effort to remain in power. a judge has scheduled the next hearing for august 28th, and at this point, a trial date is set, and a next hearing is going to be five days after the first presidential debate underscoring the historical debate of this case. now, walk us through what is next here for donald trump. >> well, kate, the aug

so we saw u.p.s. and uaw, two unions had very big contracts and that kind of scared a lot of people. but remember most of the workers in the united states are not union workers. they're going to be fired if there's a downturn in the ex economy. and that's the last thing jay powell wants. we have unemployment tipping up a little bit. the last nonfarm payroll was pretty much in line but almost in that hundred thousand, under 100,000. if they start seeing nonfarm payroll employment print under 100,000, they're going to be in the easing camp quick. >> do you need mega cap tech to start going down, or does it matter as much? because there's something else to pick up the slack? how do you view that? it's undeniably one of the reasons we're having this conversation, why the s&p is down 5.5% this month. >> and the nasdaq is down, you know, 6, 7%. tesla is down 22%. that's a big move in one month. >> apple is down 11 and a half. these stocks matter a lot. they matter on the way up and the way down. >> we had d

that date is september 14th when they are beyond the strike u.p.s. union win, effectively, raising the drivers' average salary to $107,000 a year. the sticky wage inflation is an issue for the fed in some respects. >> that is interesting >> you piece all these things together and it shows the force and power of the worker. >> wage inflation is a serious issue. it is unclear whether the fed is the one that will tamp down the wage inflation. >> i angree very little power. the way they can do it is with the big stick. >> the big stick makes it easier for corporations to say to the employee, we can't do this. we don't have access to capital. you talk about it. >> you know, they say, okay. unions, we will give you the raise. six months down the line, they reduce the size of the work force. >> right >> these things play out >>> amazon is cutting private label brands as the effort to rein in costs. in the statement to cnbc, the executive in charge says they are looking to cut brands. sales from private label represents 1% of the total retail sales it raises

>> that is awesome is girl dad over here -- >> i saw my u.p.s.ink about it. that's awesome. >>> coming up on "popstart," the new documentary spotlighting the amazing history of the san francisco music scene. we'll give you a sneak peek of that on "popstart. plus, speaking of the music scene, our buddy wolfgang van halen is here with a new album there the boys are what are you doing i'm all right today? "not like a pastime. great new record we'l'll chat abobout it and d a thingsgs in a liveve performanae afafter a chececk of your r loc nenews afafter the bebest nap of my lifefe... and papa i is hungry.. anand while yoyou're hittit' the e trail, i'm m hitting yoyour cooler. oh, cheddadar! i've gotot hot dog b buns! and yourur cut-ratee car ininsurance mimight not papay for all l t. so get a allstate, a and be ber prototected fromom mayhem, lilike me. roar. (sfx: : family scrcreams in backgrouound) speciaial k is oveven-toasted toto crisp pererfection thenen tossed with yogugurty goodneness or maybe s some red bebers special l k. in so o many cravea

it worked at u.p.s.ther 150 150,000 workers in the auto industry. >> meantime, we continue to monitor whatever progress there is between the studios, the amptp and the writers guild. the writers guild did issue this report, in which they said that disney, netflix, and amazon were the so-called new gatekeepers of media. i'll just read one line here. "each company is now taking anti-competitive vertical integration to an extreme, turning its streaming service into a walled garden for self-produced content." it doesn't sound like this is going to move along very quickly. >> it's been how long now? >> a hundred and some-odd days. >> i don't know. it's very complicated. i don't understand what a deal looks like because i think the issue is a.i. and streaming, they're new ones and they're more difficult than hourly pay on the auto line. >> the studios have offered to share more information on the non-monetary kind of non-long-term income royalties areas that there's maybe some gestures of movement. but in gene

when you look at the settlement between u.p.s. and the teamsters, as i read that, there was a very generous increase in pay that basically got the deal done >> it's always going to come down not only to working conditions, some protections that are job-specific. the writers concern about the use of artificial intelligence to create scripts. as you said and as you heard in the piece, who is going to live in the city? who can afford to live in the city who will commute several hours to get to their job at a hotel or a restaurant or working for the city of los angeles. it comes down to who can afford to live here that's why you're seeing a push for pay increases across the board. >> kate, thank you very much >>> still ahead, back-to-school blues. students are heading back to class but there are no bus drivers to get them there. we'll discuss that and much more when "power lunch" returns you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative

u.p.s., shannon in oklahoma started a small position in that stock at $179 in june. how would you grade it? >> i like the stock, i own it. i'm sorry you're down on the trade. i would average down because i do think that numbers have now been reset. i think seasonally for positive momentum until the end of the year holidays, e-commerce, and the second quarter, margins beat -- package volumes beat and pricing power was abundant. i think margins set up good the second half of the year. >> bought it at $79.50, cvs. grade that trade. >> this has been a frustrating one all year. down about 15%. i'll give myself a "d" on this one. the stock dropped about 8%, down 28% year to date. i do think the acquisition and in the long term they have been paying down debt so i will hold this one. >> shannon to you, from sam in missouri, i hear a lot on eem. what's your take and what do you think is the best way to play that? >> the story is really challenged by the fact we've seen such a lackluster growth outlook for china coming into the back half of the year, although china is about 3

so his customers along his u.p.s. route for eight years, they've already started a gofundme to help his family on maui rebuild. he's waiting to hear news about missing family members, says communications, however, have been really bad. >> we've located two of the relatives, including my oldest brother, confirmation they're sound and safe. but we're still waiting, we have a 98-year-old grandmother who we don't have confirmation of whereabouts, where she might be. >> reporter: finding those missing people, that could be very well the mission of firefighters headed to the island. we know at least one firefighter with contra costa county leaving this morning to join the rest of the search andcue teams of the will arriv anywhereween two weeks one month. that's how long the m w be. they'll be bringing in specialized animals and trying to get communications back up. reporting live, bob redell, "today in the bay." >> bob, thank you. >> on our website, we posted a guide on how you can help with donations because you want to ma

the ceo of u.p.s. a quarterly earnings call that the company's drivers will earn average of $170,000 in annual pay and benefits at the end of the five year contract agreement. the teamsters union negotiated with the carrier last month to head off a strike. and secure a new contract for 340,000 union members. >>> billionaire richard branson's virgin galactic traveled nearly 55 miles to the edge of space. it was carrying its first group of tourists including a mother and daughter who actually won their tickets. in a contest. now the tickets cost $450,000 apiece. pretty penny right there. the spacecraft returned safely to its runway in new mexico. >> oh my gosh, would you do that? >> i -- i don't know. >> my experience zero gravity. i feel like that'd be a good feeling though. >> for you, yes. for me i love having my feet on the ground but i'd love to see videos and images because i'm sure they have quite a story to tell now from what they saw. >> absolutely. >>> all right, let's take a quick look outside

he says his family lost everything, his customers along his u.p.s. route in the north bay where he's been delivering packages for about eight years, they started a gofundme to help his family rebuild. he's waiting to hear news about missing family members. >> we've located two of the relatives, including my oldest brother, confirmation they're sound and safe. we're still waiting, we have a 98-year-old grandmother who we don't have confirmation of whereabouts, where she might be. >> reporter: finding people, that could be the mission of firefighters who are headed to the island. we know of at least one firefighter in contra costa county who is leaving this morning to join the rest of the search and rescue teams there. most of them arrived anywhere between two weeks to one month mission. they're bringing in specialized animals and trying to get communications back up. reporting live, bob redell, "today in the bay." >> thank you so much, bob. it's just such a hard weight for so many families. we posted a guide on how you can help with donations, if you

now, think uaw, think u.p.s., think supply and think wages. there's a lot of moving parts here, but the rest of the world is certainly following rates higher, a world really deep in debt. let's look at boons, shall we? they're hovering very close to yields at 2.70, four more basis points, highest yield since 2011. let's look at guilts in the uk, at 4.72, they're toying with the highest yield since 2008. if we look at jgb, steve just mentioned and nothing, maybe more important than a world with no carry trade because we've never experienced such a world in quite a few years, and it's at 65 basis points, toying with the highest yields since 2014. and then finally, all of that, of course, goes into what's going on in asia and china in particular as they lower rates, the dollar against the wan, nearing the best levels nearing since 2007 we're getting very close. kelly, back to you. >>> very close. rick, thank you. we've set the stage for markets, the ten-year yield at 16-year highs. powell speaking at jackson hole in a couple of days. our next gue

the other is if you, the u.p.s., are going to operate in the black sea near russia, if you are goingin the south china sea near china, hey, we can do the same thing. we can operate the bearing straits. i would expect them to see them in the future operating off of california washington state. >> brian: dan, i didn't have to tell you. this didn't happen in a vacuum. they are buzzing -- russia and china are buzzing our planes and our drones, sometimes taking them down. they are cutting off our destroyers as we go in through international waters. and we basically have had no response. again, what is our response? >> one thing i would add to the brazen russian chinese projection of power against us there is a real domestic component here. vladimir putin has spilled inorder nante amount of blood and treasure in ukraine and is suffering from domestically. >> this is a way to show that russia can go toe to toe main united states main ally china. russia wants limitness. china is not giving russia what it needs. minister in north korea begging for artillery in the united states it puts premiu

we're just seeing the teamsters take on u.p.s. and win a really strong contract for their workers.rses all over this country stand up and fight back for decent wages and working conditions and for their patients. right now, what you have is the big three auto industry, they're making huge profits. while real wages for those workers have not kept up with inflation over the last 10 or 20 years. so i strongly support the uaw leadership standing up and fighting back. no one wants a fight, but the big three have got to understand, they can't have it all. they can't make huge packages, make exorbitant compensation packages to their ceos and ignore the needs of workers. i hope they will sit down with unions and ignore a contract that is fair twoeo the workers the industry. >> senator sanders, cornel west, a close ally of yours, he is running a third party campaign for president. he recently criticized you for endorsing president biden's re-election. listen to what he said. >> i love the brother, and even in love, people have deep disagreements about these things. but i think, again, he's