Power Lunch - Cantor Fitzgerald ups its Nvidia Price Target; Stocks slide 10/9/25

Episode Date: October 9, 2025

What's next for the cost of energy? We are joined by ECP's Doug Kimmelman to give us his energy outlook.  And what should investors be looking out for this earnings season? F.LPutnam Investment Management's Ellen Hazen gives her take.  It's all here on Power Lunch.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

And stocks turning lower, but not before more record highs are made. Intel leveling up its game. And maybe what one single stock can reveal about the health of the job market. Walking at Power Lunch, everybody, yes, overall, the indexes are pulling back a bit right now. But not before the S&P 500 and NASDAQ hit all-time highs earlier today. Intel lower, despite unveiling its new state-of-the-art line of chips, and nobody seems to care. We're going to find out why. Plus, economic data at a premium is the partial government shut down hitting day number nine. But one investor is here to say that mystery stock, that one right there may tell you all you need to know about the job market and a rather electric interview on deck.

One of the greatest power deal makers in the world is here with why your electric bill is probably going higher. Hey, don't blame the messenger. Hi, everybody. I am Brian Kelly is off today. we got a lot to do, but let's start with the chips. Because today, Intel made some pretty significant news. And as we just said, few seem to care. The stock was up a touch. Now it's down to touch.

But the lack of movement may seem odd, given some of the headlines that actually came out of Intel. Christina P, joining us out to kick things off at KP, this, am I wrong? The headline seemed like a big deal. The market doesn't seem to care. You are right. This is a very big deal for Intel because they unveiled their Panther Lake processor. It's the first chip that's built on what they're calling the most advanced manufacturing process here in the United States yet. And it's a really big technical milestone that proves Intel has finally caught up to the industry leader of TSMC Taiwan Semi after years and years of falling behind. The chips, these new ones are significantly faster, more efficient, already in production at Intel's Arizona factory.

So that's also a bit of news today too. with laptops hitting shelves around CES in January. Two years ago, though, this probably would have been huge news. Intel bringing in chip production back from TSM to a certain degree, hitting its targets, improving profits by making chips in-house. It's exactly what the turnaround story needed. But as you pointed to, Brian's shares are what? Barely negative right now.

The stock has already surged 86% this year on government backing, not product launches. U.S. took a 10% stake in August, Nvidia, soft bank invested, President Trump went from attacking CEO Liputin to backing off, all of that speculation may already be priced in. Panther Lake proves Intel can make competitive chips for itself, but real success really means winning contracts from other chipmakers to fill that foundry business. Until Intel announces a major customer willing to pay them for manufacturing chips, they're kind of just filling their own factories, not truly competing with TSMC.

The tech works, but investors want proof someone else is going to buy it. I always want to prove somebody else is going to buy it. Christina P. Stay with us for more on Intel and the chip trade in general. It's also bringing in C.J. Muse. He's an analyst that canter Fitzgerald. He doesn't have a hold rating on Intel, $36 price target, more bullish on Nvidia, raising his target to $300 from $2.40 with a buy rating. Christina still with us. CJ, welcome. You just hosted Nvidia for investor meetings.

That included CEO Jensen Wong, the CFO and others. What did you learn from Nvidia that you obviously liked hearing? Yeah, sure. Thank you first for having me and good afternoon. You know, I would say that, you know, the key focus was, you know, A, what has led to this explosion in token demand and therefore this shortage of stood-up GPUs and the CAPEX announcements for additional investments that are now on the come. I think B, a real focus on whether we're in an AI bubble. And I'd say categorically, the management team from Nvidia, highlighted that we're clearly not that today is very different from 2000. And then C, they spent a great deal of time talking about their competitive advantage vis-a-vis AMD and custom silicon from the likes of Broadcom, Marvell, et cetera. So a great three days of meetings with investors there in Boston today. And I think, you know, taking a step back, the key takeaway is that the AI trade is alive and well. And we view Nvidia, particularly at the time,

this valuation relative to its AI peers as the best name for the most upside looking out over the next six to 12 months. Well, CJ, what do you think then is wrong with Intel? To our point at the top of the show, why isn't Intel getting any love on what appear to be and what Christina says are pretty big headlines? Yeah, I think Christina was spot on that, you know, the stock ripped with, you know, Intel effectively, you know, being long Trump. but we now need foundry customers. And right, that's not going to be 18A, that's going to be 14A. And so I think Panther Lake announcement is positive.

But what we want to hear more about is the cost structure, the yields, things like that, that really matter to foundry customers. And so if we get, you know, positive news on that front, you know, then I think shares would push higher. But that's really, I'd say, more of what we're waiting for, them being able to produce for others. at attractive yields, at attractive margins, et cetera. You know, Christina, I wonder, what's TSM, Taiwan Semiconductor?

What's their role in all this? Aren't they ultimately making pretty much most or all of the chips that we talk about every day for pretty much every company that we talk about? Yeah. So you answer your own question. They are, and they're building, they've built a Fabs in Arizona, also where Intel is. So they're still have a major presence here in the United States. their most advanced technology in Taiwan, despite what some people will say they're bringing

it here to the U.S., which is why it's so important for Intel to really build more advanced manufacturing capabilities here on U.S. soil. But there's just one point I wanted to make, because CJ talked about this bullish narrative that is coming from often CEOs. There's two major reasons you've seen a lot of these stocks climb higher than you can say that it's not a bubble because they're still producing strong earnings growth. And then the second thing is that most of these KAPX investments come from positive-free cash flow with the exception of Oracle. So there's a lot of money, a lot of these companies have money,

and so they're just spending money that is available to them. They're not necessarily getting levered out. And so, and the other thing, too, to the circular narrative, and I bring this up, Brian, because we constantly speak about it on air, is that Nvidia and other companies will say, we're not forcing the companies we invest in to buy our chips. They can do whatever they want. And so I think that's an important narrative to just bring up whether you believe it or not. Yeah, I think it's important. And CJ, you can answer to that because it's become very the last couple of weeks to kind of talk about how all this money is flowing. It's not an invidia issue. To me, it's more of an open AI issue, which maybe is not your world. Any other

comment on that, but also any other semiconductor companies, we may be leaving out. We may not be mentioning that you do also love. Sure. I think you're spot on. You know, open AI has a desire to be a hyperscaler. And, you know, the window of creating the AI platform is probably the next one to three years. And so their aspiration is to be as big as fast as possible. And to do so requires funding from, you know, alternative sources. And so that's where, you know, money from, you know, the likes of NVIDIA, AMD, shares, et cetera, you know, makes a lot of sense. They're going to have to tap the debt markets. I would imagine they would have to issue more equity as well. But in that front, you know, they want to be the AI platform and so they need to spend. And I think, and I think,

I think oppositely the big hyperscalers, you know, are seeing others encroach on their turf, and so they need to defend their space because it's existential for them as well. To your question around names that we might be missing, I would say in the last six weeks we've seen since Jensen talked about a three to four trillion AI infrastructure spend environment in 2030, we've seen investors start to look at the arms dealers. And so I would really highlight semi-cap equipment and as well as TSM as great names to own as, you know, great laterals to this AI trade. Yeah, to my earlier point, CJ, doesn't TSM kind of win no matter who wins? They are the monopoly arms dealer, so 100%, yes.

Is there a risk of China, though, because no matter what we talk about with Taiwan, there is always, this looming issue of China and what they ultimately may or may not do around Taiwan. I know you're not a geopolitical strategist, but it must be in your thinking when you talk about the company. It's an obvious risk. Definitely above my pay grade to have real great thoughts right on that potential outcome. But I would say that if that were to occur, The implications would be vast.

You wouldn't be able to build an iPhone for probably multiple years. So it would have an impact on everything technology because like the conversation started, TSM builds 98, 99% of leading edge silicon. 99% is almost all the percent. C.J. Muse, Christina Parts and Evelas. Great combo, guys. Thank you. Appreciate it. All right. Coming up, speaking of semis, while you're next, guest says you got to buy shares of a few other names plus a bank and a big name energy company.

We tie it all together. Next on PowerLunch. All right, welcome back time now for your daily bond report. And kind of like the government, the bond market seems a little shut down. Yields right now not moving too much. The 10-year yield at 4.14% one year ago, the 10-year yield was at 4.14%. So while there have been some intra-week moves, or basically at the same borrowing rate as one year ago, all this, even as the national debt is getting close to $38 trillion. There's all your yields. We showed you the two-year, by the way. Now, that massive government debt, about $328,000 U.S. dollars per taxpayer. And the partial government shutdown, not impacting stocks lately at all. We hit new highs earlier today,

a little bit now, but did pop at the open and all eyes really turning not to the government, not to debt, but to the earnings. They're going to really start rolling out next week. Ellen Hazen has some big ideas for you into all of it. She is chief market strategist and portfolio manager at FL Putnam Investment Management down from Boston and joins us now. Ellen, good to have you on set again. Thanks for having me. Before we get to some individual things that you like, Why do you think the market is not responding more to day nine of a partial government shutdown? I think there have been a lot of shutdowns over the years. We've had 20 shutdown since 1970.

Most of them were only a few days. The longest one was the last time, 35 days. And even with that one, you had markets down and then back up for a net change. It was just down a couple percent. So I think that the market, Brian, is looking at history and saying, you know what, this isn't going to last. There are incentives on both sides to try to resolve things. We think that will happen sooner or later. But think about it, right?

Markets are looking out five, 10, 20 years in the future for their discounted cash flows. It's hard to say because there are a lot of people and families impacted by the shutdown. Paychecks. Hopefully they will get back pay. The president kind of alluded maybe they won't. That aside, looking at earnings, we're starting to get some earnings. Pepsi, Delta Airlines, and others. What are you going to be most focused on beginning really next week?

A couple things. First of all, next week is when the banks start because the banks are always the first to report. So they're looking pretty good. On the investment banking side, you have investment banking picking up. And you also have the steeper yield curve with the rate cut that we saw last month. And so with credit still being very strong, especially for everything other than the very lowest cohort of income, I think credit costs are not going to be a problem. And net interest margins should be pretty strong.

So we're looking at that with banks. The other thing, Brian, that we're really focused on is going to be commentary around tariffs and pricing. I think a lot of companies have not increased prices in response to tariffs. They've paused. They either haven't got it through their inventory yet or they're looking around at their competitors to see what their competitors are going to do. And so we haven't really seen that show up in inflation. If that's going to happen, and I don't know if it will happen, but if it's going to happen, I think we'll start to hear about it this quarter. So that's the other thing I'm going to be listening for on conference conference. Why do you like Morgan Stanley

as an investment. It's a fabulous franchise, right? You have the investment banking side, which is doing phenomenally well, especially with the lighter regulatory touch that we're seeing under the current administration. And you have the wealth management business, which is more than half of earnings these days, very sensitive to the markets, excellent execution, and it's a very reasonable multiple. So I think that's a stock you can buy and put away for a long time. You know, we just talked about the semiconductors. Obviously, in video, we're contractually obligated, talk about invidia every day. That's a joke. folks, it's not true. But you say there might be some others, the Lamb researchers, the Broadcoms

the world that don't get as much attention that may be worth investor attention. Absolutely. So a company like Broadcom, I think, has gotten more attention recently than it did up until this year. It was sort of less known, I would say, than Nvidia. But as you're moving from training to inference with a lot of these models, Broadcom is much more competitive in inference. And so as more of the data center money is being spent to build. out inference, that is really going to help. Similarly, with Lamb Research, I know that you and your guests earlier were talking about TSM, lamb sells into those semiconductor companies.

They sell the etch and deposition equipment that allows them to make the chips. And so if you have TSM who had fabulous numbers this morning doing well, they're going to buy more equipment and that's going to help lamb. Because they need to buy the lamb stuff to make the stuff that they make for Invidia. Exactly right. Yeah. Yeah, just like they have to buy lamb, they have to buy lamb. buy from ASML. There's a whole lot of them, but Lamb is one of our favorites.

All right. We have a guest coming on later on who actually helps sell Calpine to Constellation Energy, $26 billion deal. Doug Kimmelman, he'll be up at a few minutes. But talk to us about constellation. We know the bullcase, you know, power costs going up, the stuff that's not contracted, they could sell out. Any other reason you might like a CEG? I think it's the premier name in the space. You have a huge nuclear exposure, and you also have gas exposure when the Calpine deal closes. And their footprint really overlaps with a lot of the data center demand from a geographic perspective. And so they're going to benefit from the capacity. Their capacity is almost doubling with this deal. And they're going to get pricing. And in addition

to that, you have this very long runway of demand going forward. And yeah, it's 21 times earnings, not cheap. But that's not outrageous for something that's going to be growing strong double digits. It's amazing. I mean, people just, if people bought the power companies a few years ago, They made a fortune. You were telling him to. Well, I didn't tell him to buy the stock, but thank you. We tried to highlight this coming demand, and I appreciate it. I kind of love the fact that everybody's now an energy expert, but hey, there goes.

We're all following you. Oh, say it against. Stop, stop. Ellen Hayes and F.L. putting them. You're welcome back every day now. Oh, well, thank you very much. I appreciate that. All right.

Coming up, the single stock, your next guest says, is a proxy for the entire American job market. All right, welcome back to Power Lunch. I'm Dominic Chu. It's time now for your market navigator. The government shutdown is in its second week, and that means we're still not seeing any kind of economic data come out of the government. But our next guest says one stock in particular could hold the key to unlocking the job's picture in America and how Wall Street might be feeling about it. So joining me now on set is Lee Munson. He's president and chief investment officer over at Portfolio, wealth advisors. We usually see you in this monitor right here, but you're actually here in studio. So thanks for being here.

All right. It's a breakout. So let's talk about whether or not we are seeing some kinds of stocks in the marketplace that might be acting as a proxy for the jobs market and where Wall Street is expressing a view on what that jobs market might look like. So first of all, Robert Halfe International. It's a storied brand. They focus on accountants, finance, a lot of the areas where AI isn't as ingrained for those workers. So if you overlay some basic charts, it's not a chart crime. My analysts took a look at it. And you look at the jolts, the job change. It's about job volatility, job churn, Robert Haff almost perfectly overlays with this. In a sense, it trades as a proxy for how loose that labor is. Right now, we don't have it. We have what I call the four

nose. We've got no hires, no fires, no raises, and nobody moving. So if we get a little loosening up in de-escalation of tariffs, de-escalation where companies know where they stand on trade, and then we start a rate cut cycle that we haven't started yet, but we know in May we're going to have a change of leadership. We know it's coming. You get those two things. All I need is more job volatility. That's how you make money in the stock. So we're showing this chart right now of Robert Haff over the course of the year to date period. This stock has halved in value during that time. So if we place that in context with the kind of jobs numbers that we did see prior to the government shutdown, it kind of indicates perhaps a little bit of that story about this

idea that the jobs market may be weakening or is weakening. So is there any kind of a turn anytime soon? You know, I think there's going to be because in terms of the actual job market loosening up and getting more people, because the churn is what we need in America. That's where we get innovation. That's where management can really dial in what they need to make more profits. I still think you're about maybe three to six months away. Again, we need to have that rate cut cycle happen, which hasn't happened yet, and we need to have more visibility on trade. So we all know stocks move two to six months ahead of the future. So last couple weeks, you've seen Robert Haftsard to come to life. We're going to have earnings this month. And what I'm listening for management

specifically is I want to hear them say, we now have management asking more questions. They want to start looking more. They want to start signing contracts. They're starting to get more interest. That's what you need. So when you see Robert Haft start to come up and start to play, and people like me who are in that value play want to start buying it, that's when you know your two to six months from that labor market churn increasing. Do you feel as though this particular move by Robert Half is one that we can say more closely in the future will also align with that jobs picture. And we know the historical correlation has been there. You expect that to continue. I do. As soon as we see that loosening up in the market where management is really okay,

letting maybe a poor performer go and not hoarding labor and really ready to hire somebody new, especially in that accounting and finance, which is oh so important. That's telling you that profits are there. That's telling you that you need more. You know, the CFO needs more help. You got to count that cash. You know, you need more people to do it. So when you see Robert Haff move up, I think that's when you know you have a healthy job market. Because even if you have a recession, this stock will work. But the main thing is we've got to get out of the no-hire, no-fire zone, or it's going to calcify.

We don't want to end up like Europe. Or maybe even Japan in some instances. All right. So here, speaking of spending, one bonus one, before we let you go. If you look at spending, it's not just about the jobs market. It's also about kind of the consumer commercialized market. We're talking about things like advertising online especially. Take us through your trade for one of these particular moves in the trade desk.

Oh, it's another Liberation Day loser. Down, it's eviscerated, down half, just like Robert Half. I love Trade Desk. Everybody's worried that Amazon DSP, which is how they sell ads, is going to eat their lunch. But half of what this company does at Trade Desk is connected TV. That just means watching TV, not on your iPhone, not on your tablet, streaming on a television for those younger people who don't know. And with half the revenue there, what's happened is that while we have concerns about Amazon,

we have concerns about AI, at the end of the day, there's more and more ads. Because remember, streaming, we're getting more ad-supported streaming from Netflix, from Hulu, from Amazon. So the pie just got huge. So this is my way of playing. Ads not dead. This is my way of saying, just because Amazon comes into your space doesn't mean your toast. It's the only independent, credible place.

And if you sell brands, you're going to go to trade desk to buy that. You've got FIFA coming up. You've got a lot of interest in terms of sports. That's where the stock's going to shine. All right. So you've got a lot of macro meets micro plays here on the trade desk. And, of course, the first one out there, just taking a look at what's happening with Robert Haff. So Lee Munson, thank you very much for being here.

Brian, we're going to send things back over to you. All right. Great stuff. Lee, Dom. Thank you very much. Right on deck. A real power player. One of the great energy and power dealmakers in the world is here.

Doug Kimmelman. Next. All right, let's ask an important question. Are your electric bills about to go even higher than they already are? They could, because the competition for electricity is at a fever pitch. If a power plant or producer has not already contracted its electricity to a utility, that power is up for grabs, and thus it will likely go to the highest bidder. And right now, that's going to be the companies racing to build out data centers and AI. But what is the environment going to look like going forward, months, years, decades from now?

Your next guest is one of the leading power dealmakers in the world, is energy capital partners, a leading investor in Calpine, which is sold earlier this year, due Constellation Energy $26 billion, including debt. Doug Kimmelman is founder and now executive chair of Energy Capital Partners, ECP, and joins us now. Doug, it's great to have you on set. Thanks, Brian. Good to be very. 43 years in this business, did you ever think we'd get to this point where power has now become really the hottest commodity in the world? Finally exciting. I always use the word reliability, right? The world doesn't function. The economy doesn't function. Industries doesn't function without it. But now all of a sudden, critical to growth in the U.S. is AI. No electricity, no AI. So we're in the hot seat right now.

How stiff is the competitive... If you were to own a power plant, right? now that was not contracted to send its electricity to a utility. How much attention would that power plant owner be getting right now? Enormous, but it's not like we have a lot of excess megawatts out there to throw over at the AI. We've got to deal with the consumer first and foremost and reliability. So really we're going to be talking about additionality new megawatts rather than taking extra off of the grid to supply that. Well, I assume, listen, electricity costs tend to go up over. Everything tends to go up over time.

It's called inflation. But will electricity costs around the country go up far faster than inflation in years to come? Well, let's talk about electricity prices. We're in New Jersey. We've got a gubernatorial race. They're arguing about whose fault is it that electricity prices are going up so much. Well, people don't realize here in New Jersey, public service electric and gas, they serve maybe 75% of the state. Roughly 30% of your bill is power generation.

20% are taxes, all sorts of policy things add-on. No one knows what all those little pieces are, but 50% of it is transmission and distribution. There has been massive spending over the last 15 years on transmission and distribution. Remember we had Superstorm Sandy, and the mindset was that every Thursday we're going to have another hurricane.

So public service, electric gas, has put in probably 20 to 30 billion already. The next five years, another 30 billion. That is now showing up in rates. We've had an increase just on the transmission side, about 300% increase over the last 15 years in... How much that is because politicians everywhere ignored it for years because if it wasn't their immediate problem,

they didn't want to say, I'm going to raise rates, so they ignored it. Now in many places, I think we've got power lines 60, 75 years old. They're critically old. They're falling over a high wind, boom. They're down, maybe a fire. I feel like we're at this inflection point. Yeah, look, it's not just that renewables are in remote locations, right?

It's windy and sunny out in the desert, not necessarily where people live. You need thousands of miles of transmission lines. That's very expensive. That goes into rates. And so when you put that into the equation and those increases, power generation over the last 15 years actually has gone down maybe 40 or 50 percent in terms of the price. But going forward, obviously it's going to have to be additionality. We can't do that to the retail consumer to just say we're going to take it from the grid. So when Doug Kittleman, and I'm referring to you in the third person, when Doug Killman is watching C&BC,

And here's that OpenAI is saying, we're going to do a 10 gigawatt deal over here. We're going to do a 5 gigawatt deal over here. By the way, this is the equivalent, as I've said to our viewers, of millions of homes worth of power. Just being handed out like candy, right? 10 mega, you get a megawatt and you get a gigawatt and you get a gigawatt and you get 10 gigawatts. What are you thinking? Is that power production going to be there? Well, it's massive of the needs.

Let's just go through the math a little bit. But the U.S. has about 1,200 gigawatts of power generation capacity, 1.2 million megawatts, if you want to put it in megawatts. Data centers right now are about 2% of that, so maybe 25 gigawatts. Okay. And we're talking about going to 10% of electricity needed for that. Fivefold increase. Yeah, so maybe another 100 gigawatts or so. But the big one, we're forgetting.

Right now, we're about 40% of our power comes from. 100 gigawatts is effectively the state of California being added to the grid. Yeah, but I'm going to give you two more to almost triple that. We're nuclear and coal. We used to be 70% of our power came from that. We're down to 40%. It's still shrinking. They're old as well. Maybe 150 gigawatts could be lost, right? And then on top of that, we're talking about AI demand. You're forgetting a whole bunch of pieces of demand. LNG export, highly electricity-intensive, right? We've got to refrigerate that gas, liquefy it to send it off. Cryptocurrency mining in Texas, the electricity load for crypto is bigger than the entire city of Houston. Onshoreing of manufacturing. Obviously, we have have, have that under the president, a lot of it, electricity intensive. And, you know, we can put in the equation if we want, you know, on all that, not just the crypto mining. There are no new nuclear plants currently under construction in the United States, Doug. There are some in development. There are some being discussed. There's small module reactors. There's some tests going on,

but large scale nuclear, there is nothing, and there's not a lot of natural gas either. Where is is coming from? I had a friend this morning said to me he's focused on the PowerPoint reactor, meaning it's a beautiful PowerPoint presentation. Oh, I love that. That's fantastic. But where's the reactor? So number one is we've got to not have as many retirements.

Secretary of Energy, Chris Wright, very focused on the word net. We've got to slow the retirements of coal and nuclear. That's first and foremost. Second Brownfield expansion, take existing site. It takes a utility five years to get you an interconnect. So let's focus on existing sites where we have a lot of the infrastructure and expand that. Don't forget about solar and battery storage. Even with tariffs, even without subsidies, it's cheaper than natural gas and you can get it online within a year. Then we get to gas,

which is going to be enormous, and that's going to be the big driver adding a lot of capacity. You didn't mention offshore wind. We know the president has very strong views about offshore wind. A lot of our viewers have very strong views. Maybe they don't want to screw up their view with the windmill, but the reality is they do produce a lot of power. It's irrelevant. to what we're talking about. They don't produce that much power and it's highly intermittent. A data center operator needs five nines, 99.99% of reliability. That's going to be driven mainly by natural gas. Nuclear, we would love to have it way off in the future. Maybe we can restart the Three Mile Islands. Maybe we can add capacity to the world. They want to do that at FERC and a few

others say okay. And we got a new FERC commissioner that just came on board, which is great. We've got the NEDC, the National Energy Dominance Council. They and the EPA and the Department of Energy and Doug Bergam's interior, they are working together. So they're working fast to fast. Can you believe that a couple of years ago, by the way, power lunch is going to be in our San Francisco studio in a couple weeks, be out in my home state of California. And I know you and your lovely late wife have a wonderful tennis facility you're doing in downtown, L.A.

I never want to forget that for the underprivileged community. We were talking about shutting down Diablo Canyon nuclear plant in California like four or five years ago. It's roughly 9 to 10% of the state's daily electricity production, and it's always on, and it's 100% reliable. My guess is we won't be having conversations about shutting down Diablo Canyon anymore, will we? U.S. is still the world's largest producer of nuclear power, right? France has got a higher percentage, but we've got a bigger base. We need it.

Here in New Jersey, they shut down Oyster Creek. I used to do some fishing down there on Barnagat Bay. We need plants like that back. We're still 40% nuclear. New Jersey. In New Jersey. Thank God, by the country, about 20%, but Sanofre was shut down in California. They only have one left. They can't shut it down. We've got to

not just slow the shutdown and put money in to extend the life. We've got to expand some of these things. I used to go to the beach at San and Offrey. Tressels is the name of the surfing beach there. Are they going to what's going to happen with that? An Indian point, which I think there's some talk about reopening that.

It's not coming back as a nuclear plant, but think of the infrastructure. Think of the transmission line that go in there. We should put something else there. probably gas-fired facility could be a data center that goes with that as well. All right, Doug Kimmelman, energy capital partners. Always appreciate your views. 43 years. Just getting started.

Started when I was two, so it's not that. Started one and a half. Okay. Doug Kimmelman, thank you very much. All right, let's get out of Bertha Coombs for a CNBC News Update. Brian, Homeland Security Secretary Christine Nome said today, her department will purchase buildings in Chicago to work out of. It comes after the city's mayor signed an order banning federal

immigration agents from using city-owned property. Noam says the department is also looking at buying facilities in Portland, Oregon. Alex Jones has asked the Supreme Court today to pause an almost $1.5 billion defamation judgment imposed over his false claims that the 2012 Sandy Hook shooting was a hoax. In a new filing, Jones said the court's immediate involvement is needed because his website, Info Wars, is on the verge of being turned over to the satirical news site The Onion to help fund the payments to his victims. And President Trump will go to Walter Reed National Military Medical Center Friday morning for what the White House says is his routine yearly checkup. It is his second visit to Walter Reed this year. It comes after he was diagnosed in

July with chronic venous insufficiency, resulting in swelling in his legs. Brian, back over to you. All right, Bertha Coombs, thank you very much. All right, coming up next on Power Lunch, why it could be finally a very big time for some smaller stocks. That's next. Today's Power Check has a special smaller cap focus for you because while the magnificent 7 and the mega cap steal most of the headlines, we've said for a long time that there are a lot of really great companies

that could make you money. And Erie Wald of Oppenheimer is here to highlight three of them. Eric, great to have you in person. Thanks for coming in. Really appreciate it. All right. First one you brought in is actually one of America's oldest companies. Lincoln Electric pre-1895, Cleveland, Ohio, not super sexy, welding and power equipment. Stock's done well. What are you seeing in the charts? It's done well. The entire sector has done well. As we think about the bull market since 2022, perhaps one of the under-the-radar sources of strength has been in small and mid-cap industrials.

We like momentum. This is still a sector we like. It's really broad-based throughout this group. In the capital goods industry group in particular, and so you have a name like Lincoln, which really hasn't run up as much as the other names. You had a big breakout this summer. I think that confirmed and completed the reversal. It's been sideways since then. That's really your textbook time correction, just building sideways, working off those prior excesses. I think that sets up a resumption of that strength of the upside. I think he moved back to the March 2024 high with the potential for a breakout to new all-time highs. Potential for a breakout. All right. From Cleveland to Copenhagen. Because your next pick, Ascendas Pharma, based in Denmark.

I'm not going to lie. I tried to figure out what they do. It has something to do with technology and biotech got a unique platform. But the stock is at a big year. It's up 54%. Yes. It trades as an ADR, we do cover it at Oppenheimer. It's an outperform rating name, so there's some fundamental coverage here. Our analysts likes it. He's outperform rated, so there's some fundamental support behind it. And I bring it up, as we think about this farmer group, that's really underperformed through this bull market coming off a multi-year relative low. But we're starting to see some emerging strength in the health care momentum index, which, you know, listen, we always advocate for leadership and momentum. And I think you really have to do that in this sector. But against

that tough, top-down headwind, you have a stock here that's just breaking above levels from four years ago. There's an important breakout about the 185 level. I think that's an indication of new demand coming in for the share price. I think you see higher highs. I think he defended at 185, and it's a real standout in that sector. Real standout. All right. Finally, the next one, sounds like a movie about neon motorcycles and flying discs. It is not. It is Eitron, a Washington state-based water management company, the median target price 144. That implies a pretty good amount of upside. From here, do you see the same, technically?

And here's another name. We don't discuss these names often broadly, but they do get a lot of attention at our firm. This is another one. It's covered at the firm, and it was recently highlighted in the firm's Smidkout Standout Report. This is one of our best Smidkap ideas. It's got standout fundamentals, and it's really got a standout chart as well. If you look back here, it's breaking above 18-year resistance dating back to the great financial crisis. Going back to 2007.

I think, again, this sets up for a stock that can move significantly higher. That breakout level is at 115. The 200-A moving average is there. You've actually seen a little bit of a correction there. I think that sets up as for a near-term opportunity to buy this emerging long-term strategy. Okay, I love the three picks. Lincoln Electric, Ascendus, Itron. Do you have a macro view on the market in general?

We go up seven days in a row, we're down one. We keep going up, we're down one. It's overbought, but you see how tough it is to time pullbacks. You've got to stick with it. The market is behaving in a manner that should move higher, that is consistent with one that should continue. And I think you want to play for higher market highs, especially with a Russell 2000.

Even overbought, it's like, ah. Overbought could be a good thing. That's indicating that price is. still accelerating, especially when you get some broad-based participation behind it, I think. Aren't we at like one of the longest periods and decades above the 50-day moving average on the NASDAQ? It's like some stat I'm trying to pull out of my head. Some stat, somebody, you know, there's always a new stat out there. Listen, we've hit the three-year anniversary of this bull market cycle. It's definitely slightly above average in terms of historical duration and magnitude,

but that doesn't say it can't become an extended cycle, and that's what it's setting up to be going into 2026. Eric Wald, glad you're here from Oppenheimer. Appreciate you talking to us in person. Ari, don't be a stranger. I'll be back soon. Thank you very much. All right. Another mystery chart for you, folks. Before we go to break, we're going to give you more on which stock investors slam the brakes on this morning. The car pun is a bit of a hint. That's the chart. We'll tell you the name and the story. Coming up. Well, fair to say that O'Lenzo Ferrari would not be real happy right now, Not only is his race team third in the Formula One standings behind McLaren and Mercedes, but his beloved car companies having its worst trading day ever.

Let's find out why. CBC Wealtheader Robert Frank, joining us now with more on Ferrari. Robert. Brian, good to see. Well, let's go back to Marinello today because that's where this news is all coming from on their investor day. And there were two numbers here that really concerned investors. The first was about profit growth. they had been guiding toward annual profit growth of around 10% going through 2030.

They're now sort of projecting, or at least analysts are, profit growth of more like 6%. So that's really a moderation that's weighing on the stock. The other thing that could be a factor here is that they projected at one time that EB sales would be 40% of their lineup by 2030. Now saying it's going to be 20%. So they're saying by 2030, their lineup will be 40% percent. combustion, 40% hybrid, and 20% EV. Now, there doesn't appear to be a lot of demand right now for high-end EV sports cars. We've seen Lamborghini, we've seen Maserati, we've seen Ashton Martin

all either delay or roll back their EV plan. So I don't know that that's a negative factor, the fact that if Ferrari is sort of agreeing with the market, that there's not a huge demand, at least right now, for high-powered EV sports cars. But these are the two things that came out of that Investor Day that appear to be weighing on the stock for now. I would just add, Brian, this is not a wealthy art spending on Ferrari's story. At least we don't see it right now. There's no indication that demand is down in the all-important U.S. market. The waiting list for these cars is a year, sometimes two years long. They're basically sold out of everything they make right now. So at least for now, it doesn't appear to be a demand story. Yeah, and I want to make it clear. And this

This kind of blew my mind today because I knew you're coming on, so I checked, that Ferrari's market cap is $23 billion more than General Motors. Now, I know market caps are impacted by debt levels, and so that's kind of dragging down the market cap. But my point is, it's a bad day today, but Ferrari arguably is probably the most valuable car company in the world per car. Is it not? It's one of the most valuable luxury companies. It trades like Hermes on a P.E. basis. And just to wrap it up, the reason that any sort of concern moderates the stock is that it's such an expensive stock, like their cars, that anything that just shows a slight moderation demand, you see a big swing in price.

Yeah. And I know that my Ferrari is like seven years out, Robert. So I don't know about yours, but I'm still waiting here. Robert, it's a matchbox. Robert Frank, thank you very much. Coming up, a special RBI for you and a stat you've got to hear around gold and buying a home. And yeah, they go together. It is time for an RBI.

And today's stat has to do with gold and its amazing run. Because while you know that gold is at $4,000 per ounce, did you know that what gold can get you now is basically the same as what gold can get you 40 years ago in a good way? That's a house. Listen to this. If you bought a bar of gold, yes, a bar, a standard gold bar is about 27.4 pounds, 434 ounces. Gold, $4,60 bucks an ounce, give or take. That means a raw state gold bar worth about $1.76 million. The median price of a home, about $460,000, meaning you can get 3.8 median priced homes with a bar of gold. That's even better than in the past. This time in 85,

Gold around $330 an ounce. So gold bar on $143,000, and a house price, less than that. In fact, you can get 3.8 median priced homes today for the bar of gold double just 40 years ago because the U.S. dollar has done this. Random but interesting. Thanks for watching. We'll see tomorrow. Closing bell. Starts now.