Closing Bell - Closing Bell Overtime: Carli Lloyd On Her Path To Financial Security; Checking In On Boeing 10/8/24

Episode Date: October 8, 2024

Seeing increasing financial risk, S&P Global Ratings placed Boeing on credit watch with negative implications. Jefferies analyst Sheila Kahyaoglu breaks down what it means and the potential upside in the stock. Former Tesla Board Member Steve Westly on GM’s investor day and looks ahead to Tesla’s Robotaxi day. Carli Lloyd, 2x Olympic Gold Medalist, teams up with Betterment CEO Sarah Levy to launch a financial wellness campaign. She describes her path to financial wellbeing and security. 

Services ringing the closing bell at the New York Stock Exchange Texas Roadhouse doing the honors at the Nasdaq. The major averages getting some relief today. Everything finishing higher. NVIDIA driving the Nasdaq higher by one and a half percent. Energy, though, a notable decliner as WTI crude had its worst day of the year. That is a scorecard on Wall Street. But the action's just getting started. Welcome to Closing Bell Overtime.

I'm Morgan Brennan with John Ford. And coming up this hour, former Tesla board member Steve Wesley breaks down GM's electric vehicle roadmap, outlined by CEO Mary Barra today at the company's Investor Day. Plus, Boeing under the microscope as the company reveals its latest delivery numbers. And as the striking machinists union returns to the negotiating table, analyst Sheila Kayalu joins us with her read on the latest developments. And women's soccer legend Carly Lloyd joins us along with the CEO of Betterment to talk about a new partnership centered on financial wellness. But first, let's break down

today's action with our market panel. Adam Krzyszofuli of Vital Knowledge and Charlie Bobrinskoy of Aerial Investments. It's good to have you both. Adam, I'm going to kick things off with you because we did have a relief rally here in the major averages, but not a whole lot has necessarily shifted for the narrative. So what gives? Yeah, so I think you kind of have this tug of war that the market's been in now for the last couple of weeks whereby you have these four very powerful tailwinds the most important of which is stimulus so that includes central bank cuts around the world at pretty much everywhere except for japan alongside what china just did in the last two weeks so you have stimulus you have relatively resilient growth we've had some pretty healthy economic data in the us disinflation and then reasonably healthy corporate performance

on the earnings front. And those four tailwinds are running up against very rich valuations. And so you kind of have this battle. The result is the S&P moving somewhat sideways. It's been kind of caught in this very tight range now. But that's really what we've been doing. And it's a tug of war day to day. On certain days, the elevated valuations leave the market more exposed. Some of these exogenous risks that we've been seeing either geopolitical or the political front

in the U.S., but it's really hard for the market to sustain a sharp sell-off with those four tailwinds still in place. And I think this is going to be the pattern going forward. The bias will remain to the upside, but it won't be easy because valuations are extended. Charlie, I want to get your thought on that, especially as we do see a U.S. economy that is holding up. You have a Fed that's beginning to cut here. But as Adam just mentioned, you have valuations that are rich. You have positioning that is stretched and you have a lot hinging now, it would seem, on Q3 earnings. Yeah, those valuation metrics tend to be good predictors of long-term performance, not such good predictors of short-term. The market can seem to stay at lofty levels for a long time,

but in the long run, the best predictor of long-run returns are current price earnings multiples. And those are absolutely extended for large cap. And we just have to recommend and remind that you can't just say the stock market. We have value stocks trading at much more reasonable levels, very close to their historic averages. The gap between PE multiples of growth versus value are at historic wides. So we would say, yes, the large cap tech sector is stretched and probably in the long term not going to produce great returns. Small and mid-cap value is still reasonably priced. Adam, what should investors do with China here? There's some disappointment that the stimulus, at least chatter about it, doesn't seem to be going as far as some hoped. And we saw a big

sell-off in some Chinese markets over the last, you know, several hours. Was the excitement overdone, or is this just a bit of a speed bump on the way to continued upside? I think it's more the latter. You know, the velocity of the move that you saw in China was unsustainable. You know, in any market, you had just this enormous rally that occurred over a very brief period of time. But if you really look at what they've done, they're pulling some very powerful levers on the fiscal front, on the monetary front. And then they're also changing a bunch of rules around the housing market, which is obviously an important, critical component of the economy.

And this is a real notable change from the government. You still do have this geopolitical angle where you have trade tensions rising between not just Washington and Beijing, but Brussels and Beijing and a lot of other countries as well. So the coast is far from clear, but I don't think what you saw was kind of a flash in the pan move. Again, in the immediate term, the rally did require a little bit of give back and some digestion. We saw that. But the policy changes are very powerful. So I suspect you're going to see further upside from China-linked equities. OK, now, Charlie, revisit for me, if you will, your strongest value narrative right now. There's a lot of uncertainty. There's this volatility. You've got an election coming up in just a few

weeks. But there should be some things beyond that and into 25 that investors can sort of hang their hats on if they're kind of scheduling what they're going to buy and at what prices. Where are you seeing opportunities that are more than a few weeks long, but that are quarters long? Yeah, I would argue that the relative inexpensive nature of value stocks is because people were very worried about a Fed-induced recession. People thought that the Fed was fixated on bringing inflation down by reducing the pace of the economy and reducing the job market. I think that has fundamentally been relieved. That concern is nowhere near as high or as justifiable as it was even two months ago. The economy clearly has less likelihood of going into recession than it did even two months ago.

And so the value stocks, which admittedly are more sensitive to the economy, are in better shape, and that's not fully reflected in their stock prices. The value stocks had a very good July but gave a lot of it back, frankly, in August, and so are trading at a much more reasonable level, assuming gave a lot of it back, frankly, in August. And so our trading at a much more reasonable level, assuming we don't have a recession, which I don't think we're going to have. All right. Maybe an opportunity there then, Charlie, Adam. Thanks. Now we've got a news alert on Boeing. Phil LeBeau has the details. Phil. John, take a look at shares of Boeing coming under a little bit of pressure as the company has been put on credit watch negative by Standard & Poor's.

This is not a surprise given the fact that we saw a similar move by Fitch & Moody's a couple of weeks ago. cut is strong and therefore that would move Boeing into junk credit rating if they are having their credit cut in the future by Standard & Poor's and this is all because of the strike essentially they're burning through about a billion dollars a month because of this strike which by the way will be one month old on the 12th of October so we're not far away from that a lot of people said once you get into October, you increase the likelihood that it's an extended strike that will continue to cost the company dearly,

and they're going to go below the $10 billion in liquidity, which is basically the mark that the company has set. And most people believe once they go below that, it puts the company in a position where they're either going to have to raise capital in some fashion, or they could also see their credit rating cut to a junk status. So, again, Standard & Poor's putting Boeing on credit watch negative. Guys, back to you.

Yeah, and it's hurting the stock, as you mentioned, Phil LeBeau. Thank you. Now let's turn to Senior Markets Commentator Mike Santoli for a closer look at tech after today's bounce. Mike? Yeah, John, a little bit of a revival of the excitement in the mega cap leadership of tech after a few months when really that group came back to the pack. But really, the longer term uptrend of outperformance has not been undercut just yet. Take a look at a two year chart of the NASDAQ 100 relative to the equal weighted S&P 500. What you see there is a huge overshoot to the upside. That was the extreme narrow mag seven market that we had in the spring

into the summer that had a pretty stiff gut check. I think right after that, a lot of those stocks corrected pretty heavily. But you see in general here, we've stayed on this sort of plateau. And if you just sort of look at a two year trajectory, it's not by any means unwound. So you can have a more inclusive market without necessarily those stocks going down in absolute or relative terms, at least not in a straight line. Still planning to prove to reassert their leadership, something like semis, very similar chart on a relative basis. But for now, they're finding their footing. Take a look at the valuation side of the story. NASDAQ 100 compared to the S&P 500. Now, this group is pretty much always traded at a premium to the S&P 500. They're more growth, more reliable businesses, higher margins

in a lot of ways. But you see that this relative multiple has pulled back to about 1.2, a 20 percent premium to the S&P. And that takes you back pretty much five years to the end of 2019. Now, at the end of 2019, what are the, you know, what were the forward returns? So in other words, what have been the five-year returns for the Nasdaq 100 since then? About 21% annualized. So obviously, from this level, you're not necessarily impeded from going higher. What you did see in the interim there with the extreme premium was the scarcity of earnings growth that was residing within this group of companies that was overrewarded for a period of time. So whether this has more room to play on the downside to go to the long term averages, we just have to see. But definitely there's been some sort of moderation in that premium, John. Mike, what is on that second chart there that you still got up? What is the longer term normal range? Is it sort of just above one at around one point one? Is it close? No, it's actually it's right around that that level, I would say. One point two is probably

if you go back 25 years is probably below average because coming out of the tech bubble, it was way higher because you had no earnings in the Nasdaq. But in this sort of last decade or so, this is what the showing is the decade. It's a little bit below where we are right now, I would say, would have been the average for that period. Now, keep in mind, the S&P is also more expensive than it's basically been at any time in a couple of decades at 21 times. So you have a premium on top of a higher value market. But, you know, in relative terms, it's not extreme. All right. Mike Santoli putting it into context. We'll see you later this hour. Thank you. Now to the IPO market. Reuters reporting this afternoon that NVIDIA competitor Cerebrus

is likely to postpone its IPO after a U.S. national security review of one of its minority investors. Meantime, child care and early education company KinderCare is expected to price its offering at any moment. Now, it could end up being one of the biggest IPOs of the year. Leslie Picker joins us now. She has the details. Hi, Leslie. Hey, Morgan. Yes, KinderCare, which operates more than 2,400 child care centers throughout the U.S., is expected to price its IPO tonight. I'm told by sources close to this one that it will likely be an in-range outcome, not above or below. And those plans are currently being finalized now that the market has officially closed.

Now, the company is opting to go public after scrapping plans last year. At the high end of the marketed range, KinderCare is seeking a valuation of more than $3 billion and would raise nearly $650 million in the offering. KinderCare generated $1.3 billion in revenue in the six months through June, up about 6% year over year. However, during that time, net income declined by 53% as cost of services increased. These are things like personnel and rent and food,

largely due to inflation. Revenue is a function of tuition and occupancy at the centers. And among the risk factors cited in the prospectus is universal child care benefit programs, which KinderCare says could reduce the demand for its services. The subject of the care economy, of course, has been in the spotlight amid the presidential election. So that could be something to watch with this stock in the months to come, guys. All right, Leslie, thanks. Well, coming up, Jeffries analyst Sheila Cayalu

joins us with her reaction to the breaking news on Boeing this hour, getting placed on credit watch negative at S&P Global ratings as the machinist strike drags on into its fourth week. And later, soccer star Carly Lloyd is teaming up with Betterment for a new campaign on financial wellness. She's going to join us to talk about investing in sports, the role of sponsors, and much more. Overtime. News crossing moments ago on Boeing. S&P Global ratings placing the company on credit watch negative over increased financial risks related to the ongoing machinist strike. Now in its fourth week.

Joining us now is Sheila Kayalu from Jeffrey. Sheila, this I, is expected. We know that the strike is still going on, but how dangerous is it for the stock? I mean, we've been expecting, you know, some changes with S&P, given what Moody's had done. We actually posted a call with S&P today. And what S&P is looking for is cash break even in 2025 at minimum. That wouldn't really hold their rating. We are forecasting about $3 billion to $4 billion of cash next year, given they're going to lose $10 billion of free cash flow in 2024.

The strike actually is not impacting Q3 cash flows as much as we expected because Boeing deliveries came out this morning. And they delivered about 27 maxes versus 31 in August. So it wasn't as bad as we expected. They delivered 10 since September 13th, which is the day the strike started. But Boeing's cash position is still on shaky ground. OK, so at what point do you think the strike lengthwise becomes a real big problem for investors, even at the level the stock is trading at now? I mean, it is an issue. I think we're looking at an equity raise. Given Boeing ended Q2 with $12.5 billion of cash, we have them losing $4 billion of cash in the third quarter. That takes their cash balance down to around $8 to $9 billion. We don't have a strike impact yet in Q3, but we'll see it in Q4. Every month is about $1.5 billion of pre-cash flow outflow. So that puts them below

that $10 billion threshold. We're looking for a $10 billion raise. Some investors think it's bigger than that. I just don't know if the market has the appetite. And every $5 billion of equity raised is about $12 diluted to the share price. So we're expecting that. The market is expecting that. It's just a matter of when and when the strike is resolved. But I don't know if anybody has any insights on that. Sheila, I mean, the stock's down so much, something like 40 percent since the start of the year. Do you buy here? What does it take to actually see a true, meaningful turnaround happen in the stock? Because we've been having issues for years now. I get reminded of that all the time, Morgan. Thank you for that reminder once

again. You know, I think our target price is 240. It's based on a normalized, semi-normalized free cash flow number in 2026. We're still giving out tons of concessions. We have 58 billion in debt on the balance sheet, a potentially equity raise, a strike ongoing. There's a lot of things that could go right for this company, but there's also a lot of things wrong. The best way to hedge it is continue with the aftermarket plays. We've been pitching GE, Heiko, stocks like FTI as well in terms of positive aftermarket companies in the sector. Yeah, and certainly those companies have had really strong runs since the start of the year. I do want to get your thoughts on Hurricane Milton as we're closely watching, you know, that storm down off the coast of Florida, what the impact potentially is for airlines, especially at a time where airline stocks have rallied here in recent months. And we know earnings are about to

get underway with Delta kicking off later this week. Yeah, I mean, Hurricane Milton, clearly a watch item. It'll be a significant hurricane. And we're watching all of our Florida exposure companies on the airspace and defense side closely and hoping for the best. But obviously, the airlines are most impacted. We're seeing 90 percent cancellation rates out of Tampa and Orlando for tomorrow and Thursday. The most impacted are the ultra low cost carriers. So Legion has about 40 percent of ASMs impacted, as well as Frontier is impacted and so are Spirit Airlines. The network carriers, American, United, Delta have about five percent ASM cuts. So not as big of an impact, but the low cost carriers are seeing it. In general, the story of the airlines has been capacity cuts since the start of the summer.

We're seeing about three points of capacity cut out of the market from the start of the summer till the end of the year, which is positive for yields. Fewer flights, better pricing for the airline industry, which has not seen positive domestic pricing. All right. Sheila Kailu covered a lot there with you. Thanks for joining us. Thank you. Well, GM CEO Mary Barra laying out an optimistic vision for an EV profitability at today's Investor Day. Coming up, former Tesla board member Steve Wesley gives his take on whether the company can compete in this crowded market. Plus, we'll head to Florida for the latest on Hurricane Milton as residents prepare for a potentially historic direct hit. And take a look at some big energy movers today after WTI crude oil had its worst day of the year. Big drops for refiners that could be impacted by the storm, like Marathon, Phillips 66, and Valero.

Overtime will be right back. Overtime. GM holding its first investor day in two years this afternoon in a much different environment for automakers. GM Chair and CEO Mary Barra spoke earlier today with Phil LeBeau on the outlook for EV profitability. We believe with the trajectory that we're on right now, we will see variable profit positive still this year. And then we're going to go into next year. We still have several initiatives that we're using and leveraging our scale to get to full profitability. And that's the goal that we're on. Joining us now, former Tesla board member and founder of the Wesley Group, Steve Wesley. Steve, investors got a little excited for a moment about that profitability target.

Some of that chatter, that that language. But long term, is that the right thing to focus on? I don't think so. Look, General Motors beat Wall Street expectations, but it's a low bar here. ICE vehicle sales for GM down 2%. So GM desperately needs a comeback story. And the problem is GM is lagging on EVs and autonomous vehicles, which are the future. Tesla is going to sell, just by comparison, 1.8 million EVs this year. GM is going to struggle to do 110,000 EVs in 2024. So they've got some work to do here. And GM's been in the EV market for eight years. They ought to be selling bigger numbers. Smaller brands like

Hyundai, Kia, and others will do twice the number of EVs each that GM has done. So GM's got to recommit to EVs. They've got to recharge the cruise autonomous vehicle effort. If they can do that, they might be able to be poised for a comeback. But EV demand right now is less than expected. Is that a good thing for those who don't have the EVs and the profitability to really satisfy higher demand? Or do you think it's going to end up causing some of those laggards to take their eye off the ball and be behind in the future? Look, here are the facts. A lot of people out there say, oh, EV sales are slowing down. Nonsense. There are going to be 17 million EV and hybrid vehicles sold globally. That's 20%

of all cars sold on the planet. What's really changed here is the rise of China, the number one auto market in the world, bigger than all of Europe put together or North America. Seven of the 10 top EV brands are Chinese. Battery prices are going down every year. EV sales are going up, along with hybrids. And 2025 is maybe the first year that this green premium, where you had to pay extra for an EV, is gone. For the rest of our lives, you're going to be paying less for an EV. And that's for the simple reason that the cost of batteries goes down every

year, about 40% between 2023 and 2030. Here's one other thing to just file away. BYD, the Chinese automaker, is selling the Seagull for $10,000. How many internal combustion engine cars have you seen for 10K? So even if U.S. policymakers slap 100% tariff on that, well, gee whiz, they'll sell it for $20,000. That's a big market. Western automakers need to get ready for the all-electric future. So I get that. And even with that tariff, as you mentioned, I mean, that's an eye-popping sum in terms of how inexpensive it is, which raises the question, OK, maybe EV adoption is here and it's sweeping across the world. But it also means given how subsidized that Chinese EV market is, that the leadership for this next chapter could very well look very different.

Well, it's exactly right. Look, I want Maribara and the good folks at Ford to be successful. They've got to get the memo on EVs. Battery price is going down. Consumers are looking for lower cost, more reliable, greener vehicles. That means they have to go electric. But the Chinese have a jump start on us. We need to kick it into a higher gear. And then right behind this, you've got to move towards leadership and autonomous vehicles because that's no longer science fiction. Those are a reality. You can just come to any of the six cities Waymo is already offering autonomous ride hailing with no driver in the front seat. OK, so if we shift from EVs to AVs, autonomous vehicles, we get this Tesla robo taxi event later this week.

What does that mean in terms of this next chapter? Are investors too excited or is there real potential here to see this robo taxi future roll out sooner rather than later? And is it a profitable one? Look, EVs have been science fiction my whole life. Today, they are here now. Tesla is smart to be bidding the farm on robo taxis. But I think their October 10th event may be a flop. And that's for the simple reason they're not quite there. You need regulatory approval for these things. Waymo already has it in five cities. They're adding more every month. San Francisco, Los Angeles, Phoenix, Austin, moving to D.C. And for the simple reason you can drive 17,000 miles in a Waymo without a critical event. Tesla, depending on which third party is

reviewing it, is reporting between 14 miles and 190 miles. That just doesn't cut it. So Tesla's got to kick things into a higher gear. They need to get what's called L4, which is near autonomous approval, in either the U.S., Europe, or China in the next 6 to 12 months. General Motors, by the way, got put in the penalty box with their cruise offering, which looks to be pretty darn competitive. It was operating well. They had a bad accident. It looks like they're about to get regulatory approval in California.

So I hope they can become a competitor in the space. But the big picture here is 1.4 billion use ride hailing today. When you take out the driver and you reduce the cost of the vehicles, which you will, a lot of these will go to become Chinese electorates, not the fancy Jaguars that Weimar is using. Autonomous ride-hailing is going to be ubiquitous, and it's probably going to cost half as much with a safer driving experience. That future is coming a little faster than people think. Okay. Steve Wesley, thanks for joining us. Thank you. Well, time for a CNBC News Update with Pippa Stevens. Pippa.

Hey, Morgan. Israeli leaders have yet to brief the U.S. on details of its planned response to Iran after last week's ballistic missile attack. That's according to two U.S. officials who spoke to NBC News. Options that reportedly remain under consideration include targeting Iranian intel and military infrastructure, the country's air defenses and energy facilities. The Justice Department sued LA Fitness today, alleging it discriminates against people with disabilities at its gyms and fitness clubs. LA Fitness is the largest chain of owner-operated gyms in the U.S. The company has yet to respond. And Brooks Koepka was the only live golf player in last year's Ryder Cup, but the captains of both squads for next year's matchup at Bethpage say that won't be the case this time. Both U.S. Captain Keegan Bradley and European Captain Luke

Donald said today that they'll each take the 12 best players no matter what. The PGA now allows lib golfers to compete. European players can compete too if they haven't surrendered their DP World Tour membership. John? All right, Pippa, thank you. Let's turn now to Florida, where residents are bracing for a direct hit from Hurricane Milton, expected to make landfall there tomorrow night. NBC's Dana Griffin joins us from Naples with the latest on this powerful storm. Dana.

Yeah, John, good to be with you. We are here at the beach where you would think most people would have evacuated by now, and some have. But take a look here. You can see there are dozens of people enjoying the beach as if a Cat 4 hurricane is not about to slam the stake. Now, while we are about 150 miles south of Tampa, the area where they suspect this storm is going to make landfall a direct hit. We could still see some major impacts from Milton, including storm surge up to six to 10 feet. I spoke with the mayor of Maples. She says that while they haven't seen as many evacuations as they would like, because those mandatory evacuations started at six this morning, she believes that people will take this seriously, especially the zones that have

been evacuated along the coast and in those areas that are prone for storm surge. But that is the big risk here is storm surge. And the only way to survive it is to not be here. And you're talking about six to 10 feet of possible flooding in this area. So we spoke to some of these people that are out here on the beach. Some say they are thinking about evacuating. Others say they're at a high enough elevation to where they feel safe enough. Even the mayor herself, she says she is staying put in the city and she feels that she will be safe. But for those that have not evacuated and you are in an evacuated zone, we are hearing from officials. This is a life threatening storm. You are to leave or you could risk your life.

John Morgan, Dana Griffin. Thank you. Coming up, earnings season officially kicks off later this week. Mike Santoli has a chart that could point to a positive setup for corporate results. He joins us next to break it down. And speaking of earnings, you would have made a fortune if you invested in AMD on this day 10 years ago. That's when Lisa Su was named CEO. Check out the stock performance during her tenure, up more than 5,000%.

AMD hosts its AI Summit later this week in San Francisco. We'll be right back. Welcome back. Earnings season officially gets underway this week with big banks reporting on Friday. Let's get back to Mike Santoli. He's got a look at what to expect from corporate results. Mike. Yeah, Morgan, a lot more companies that are moving into the earnings growth category after a couple of years when it was actually hard to come by, at least on a relative basis. So this blue line and this analysis from Bank of America is the percentage of S&P 500 companies that are showing year over year earnings growth at all. And you see it was kind of flattish here for a

while. And that's why, as we talked about a little while ago, you had the mega cap kind of dominating the earnings growth story. Now we're ticking higher towards 70 percent. The overall pace of S&P 500 earnings growth has also inflected higher, though not dramatically. It was 11 percent last quarter, maybe going to downshift a little bit this quarter. But in general, it's tough for the market to get into too much trouble if the Fed is easing and earnings are going up, even if valuations are high. And I'll point out that earnings cycles have rarely peaked when you've gotten less than 80 percent of companies in earnings growth modes. You can see this prior cycles going back about 20

plus years at this point, Morgan. This is an interesting chart to me, Mike, because what we typically see coming into an earnings season is analysts bringing their estimates down. It doesn't look like that has happened to a great extent coming into Q3. And I just wonder how high the bar is now set, especially when you do have the S&P looking so expensive. Actually, so at least on a one-quarter basis, FactSet says that the earnings estimates for S&P 500 have come down by about three percentage points from the beginning of the quarter. It actually seems like a low-ish bar, if not, you know, totally easy to clear.

So at this point, a very short term, we actually have seen some moderation. But if you go out a couple of quarters, it seems aggressive again. That's why everyone says, wow, if we have two percent GDP growth, real GDP, can we really expect 11, 12 percent earnings growth going into the middle of next year? I mean, who knows? But the more distant estimates are often a bit too high and they get revised down. That's a ritual that goes through almost every year. And yet the market goes up more years than not. So I think it's a little bit of a nuanced story so far right now. It seems like expectations are pretty reasonable for the numbers we're going to hear about in the next few weeks,

even if down the road we might have to make some adjustments, John. All right. Mike Santoli, thank you. Well, up next, soccer legend Carly Lloyd on why she's teaming up with Betterment to help Americans improve their financial future, plus her take on closing the gender pay gap in sports. And check out shares of American Express, one of the biggest drags on the Dow. BTIG downgrading the stock to sell from neutral, citing concerns over its revenue growth and credit trends. Meanwhile, the firm upgrading a firm to buy from neutral,

citing growing market share and an encouraging operating income margin outlook. Stay with us. Welcome back to Overtime. Digital financial advisor Betterment recently launched a campaign with world-class athletes to help individual investors prepare financially for their future. Now, the campaign is called Pursue Better and says using Betterment's automated investing products allows investors to pursue their passions. Well, joining us now, Betterment CEO Sarah Levy and soccer legend Carly Lloyd. Lloyd is a two-time FIFA Women's World Cup champion and two-time Olympic gold medalist,

just to name a few of their credentials, and very excited to have you on. Welcome to you both. Carly, I'm going to kick it off with you. Why did you decide to team up with Betterment on this? Well, I think, you know, their Pursue Better campaign is kind of in alignment with my mantra that I've always kind of had throughout my career is be better every day. And so, you know, I'm able to go out every single day and try to excel in other things with my career that was on the field and then off the field, you know, taking care of the finances and doing all that. But Betterment,

the Pursue Better campaign just allows me to still do all the other things that, you know, kind of quite frankly come first and take up a lot more time. And I'm able to just, you know, kind of quite frankly come first and take up a lot more time. And I'm able to just, you know, kind of have my money invested and not worrying about it. So it was a win-win. And I think, you know, just aligned on kind of the way that we go about our, you know, our careers and futures. Sarah, what are your expectations from this campaign, especially at a time where you have many retail investors who are using your products? And I would imagine focusing pretty closely on some of the market moves we've had and some of the volatility that we've seen and uncertainty we've seen that that is causing some cross currents here for investing. Well, first and foremost, I would say this campaign and then

Carly really epitomizing this idea of having a plan, focusing on the long term, pursuing better. It's an aspirational idea. And so even as we sit here during uncertainty and the presidential campaign and what's going to happen next, you still have high yields. You still have retirement plans that need funding. And that's really what we're seeing from our customers. And we're hoping that this will be sort of an aspirational call to action that says, let us do the hard work for you on your finances so you can leave it all in the field. Carly, we're almost 10 years from that 2015 World Cup final moment when you scored a hat trick, defined your legend, and you've talked in the past about how right after that you hustled on the endorsement front, just took all the opportunities, thought about that as securing your future and your retirement. To what degree

at this stage, kind of having retired at least from the sport, have you hustled on investing in particular? What's your mindset? What's your strategy for becoming a better investor? Well, I think, you know, it's crazy that 2015 World Cup was 10 years ago. You know, it's hard to believe life is flying by. But, you know, to go back to that moment prior to that, the 10 years on the national team, you know, we didn't have many fans at the games the visibility all of these different things the pay uh the investment um the you know all of those things just weren't kind of at the forefront currently and so i didn't

really have many endorsements and so it took me scoring three goals in a world cup in a major world cup that fox sports you know did an unbelievable job of in a world cup and a major world cup that Fox sports, you know, did an unbelievable job of broadcasting that world cup and, you know, everything kind of aligned the stars aligned. Um, that was a big moment for me, for my team. And, you know, I took every ample advantage because I know that that window is so short for an athlete and, you know, you could get hurt and have a season ending injury the next day, career ending injury the next day and never be able to play your sport again. And so for me, it was, you know, making sure that I was stashing money away, you know, putting money away from

retirement from the from the moment I was earning a paycheck with the national team and professional soccer. You know, I had good advice and everybody said, make sure you save your money. It's not often how much you make, it's how much you save. And so that kind of carried with me throughout my career. And, you know, that moment, taking advantage of that moment in 2015 and really approaching the off the field opportunities the same way that I approach the on the field opportunities, working hard and, you know, treating people with respect and showing up prepared, all those different things allowed me to be in this position, you know, financially and just being able to kind of pick and choose what I want to do in my retired professional soccer life. So it's been really good,

but nothing's changed, you know, still putting away for the future and making smart decisions and just having good people around me that, you know, can kind of support me in that regard. Great. And so, Sarah, I mean, the rest of us will probably never have a moment on a stage quite that grand where we perform quite so well. But how can you, how can we help investors take advantage of their big moments financially and invest better, but then also do that hard work, be consistent the way that folks like Carly Lloyd did in their career that inspire? How do investors do that better? Because too often we invest emotionally.

That's exactly right. And I think Carly says it best when she says I was told early to save. Really, it's about having a plan and it's about starting early. And whatever you can save earlier on helps. The power of compounding is your friend. And so I think what we really preach at Betterment is, even if it's only a little bit, put it away for retirement, take advantage of the tax breaks that the government offers you, and have a plan and be consistent. And that's

what Carly's done, and that's what we teach people to do if they join the Betterment family. And finally, Carly, you're such a proponent of equal pay. I am curious your thoughts on NIL, name, image, and likeness, and how that could change the game for female athletes. That might be a whole other segment. You know, I think that it's a very interesting dynamic. You know, I kind of understand it from both sides. The thing that I worry about is when you get financial money and opportunity very early on and you, you know, the level of wanting to work harder to kind of get to that level and that professional level, you know, is a little tricky. So, you know, are these athletes going to be hungry for more or are they just going to rest on their laurels

because they're getting paid and they're getting compensated and things get very comfortable, you know? And I think for me in my career, my personal individual career, not having all those endorsements, you know, it was never about the money. I, I, I, it was about the sport. I loved playing and that's what drove me. And then obviously, you know, 10 years into my career, having that world cup hat trick, um, you know, being able to put money away and save and plan accordingly for the future was just a, an added extra bonus. So it's a very dynamic, sticky situation. I think when you're given so much at an earlier age, it does kind of, you know, play some tricks on that comfortability. So I don't know. We'll see. We'll see kind of how everything unfolds.

All right. Well, Carly Lloyd, the Brennan Cacciotti family says you're the greatest female soccer player of all time. We're thrilled to have you here on CNBC. And Sarah Levy of Betterment, it's great to have you as well. So thank you both for joining us. Thanks, Morgan. And for more on the intersection of sports, business and investments, be sure to check out CNBC Sport on CNBC.com. Well, Honeywell taking another major step towards streamlining its business with a big spinoff. Got details straight ahead. And hims and hers health under pressure. After Weight Watchers announced it will begin offering compounded GLP-1 drugs to help members lose weight.

Separately, the Congressional Budget Office putting out a note saying current legislation to cover obesity drugs under Medicare for people without diabetes or cardiovascular disease would increase spending by $35 billion through 2034. Welcome back to Overtime. Some news just crossing on Pfizer. The FT just reporting that Pfizer CEO Albert Borla plans to meet with activist investor Starboard Value next week. That's after news that Starboard has taken a billion dollar stake in the pharma company. The report says Starboard CEO Jeff Smith will be at the meeting along with partner Patrick Sullivan and Borla is expected to be joined by lead independent director and Adobe CEO Shantanu Narayan. Well, shares of Honeywell meantime outperforming today, finishing up almost 2 percent. The industrial conglomerate

announcing plans to spin off its advanced materials division by 2026 into a standalone publicly traded company. That business will be a pure play focus on specialty chemicals and materials, think polymers, industrial paints, plastics, additives. It is expected to have annual revenue of $3.8 billion in fiscal 2024 and EBITDA margin greater than 25 percent. This is the latest step under CEO Vimal Kapoor to transform and position Honeywell for what Kapoor has identified as three megatrends, automation, the future of aviation, and energy transition, something we've talked about before. This spinoff, which is tax-free, streamlines the conglomerate's portfolio. It creates a pure play materials business with more flexibility to pursue growth for both entities.

Honeywell's been acquisitive under Kapoor since he took over last year along these megatrends. Now, management also saying Q3 earnings trending to the upper half of the guidance range. Don't miss Honeywell CEO on the network. That's going to be tomorrow at 10 a.m. Eastern. Well, Roblox shares lowered today after a new short position disclosed by Hindenburg Research raised disturbing allegations about the safety of children on that platform. Details straight ahead. Welcome back to Overtime.

Roblox shares getting hit by a new short position from Hindenburg Research. Steve Kovach here with details, Steve. Yeah, and ended the day down 2%, was down as much as 9% when this came out. That's from the short seller Hinderberg report with a number of allegations here against Roblox. Two of the big themes behind the short position. One, Roblox is lying about the number of people on the platform and failing to protect underage users against sexual predators. Roblox telling me in a statement it rejects Hindenburg's claims and highlights the company's growth in bookings and says that Roblox is a safe and secure platform. Later today, they put out an additional statement that addressed Hindenburg's claims about the users showing how they disclose their daily active users saying nothing's changed there. Now, the Hindenburg allegations on those users, though, saying Roblox misrepresented the number of people on its platform because it does not factor in folks with multiple accounts or bot accounts. Roblox also has two sets of books, according to Hemberg, one with the number of people

and another with the number of daily active accounts. Also says many of the accounts appear to be bots that inflate the daily user numbers. Others are just duplicate accounts. Also saying Roblox inflates the engagement time of each of those accounts. And then on the safety side, this is where some of the more scary stuff is going on, saying Roblox has been accused of things Roblox has been accused of for like spending less on trust and safety, making it easier for adults to create accounts and talk to or groom children on the platform. Also included some examples of usernames, including some that praise Jeffrey Epstein

and also alleged that Roblox allows sexually explicit games and experiences, among other unsavory things, without age restrictions. Roblox said in a trust and safety update back in July, it uses things like artificial intelligence and human monitors, among other tools, to keep the platform safe. But one of the more interesting things in this report I found was they were able to create an account posing as a nine-year-old, and they were able to get into some of these more adult-oriented experiences, something that Roblox says shouldn't be allowed to happen. Scary stuff. Scary stuff indeed. Thank you.

All right. Well, we're going to continue to monitor that story. In the meantime, we did have a rebound here in the major averages, and that's going to do it for us here at Overtime. Fast money starts now.