Power Lunch - Dow Jumps To Record High As Trump Survives Assassination Attempt 7/15/24

Episode Date: July 15, 2024

We’re awaiting news on President Trump’s pick for vice president, which could come as soon as today. And it comes as the Republican National Convention kicks off, following the attempted assassination attempt of Trump over the weekend. We’ll bring you the latest details. Plus, stocks are higher across the board today. Both the Dow and S&P 500 are hitting new record highs. We’ll break down it all means for you and your money.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Hello and welcome to Power Lunch. I'm Kelly Evans and joining me for the next hour is Joe Kernan. Welcome to you. There's the food? It is Power Lunch after all. Come hungry. Nope. I'm not eating. Good to have you here. I'm not eating. Thank you. It's good to be here. Thank you for inviting me. Of course. Standing invitation. These are important times that we're seeing right now too. And we're waiting for news on President Trump's vice presidential pick, which could come today. And we've been talking off camera. The betting markets are crazy.

Glenn Yonkin. Did he tip his head to you at all? No, but he was actually in the lead for a second. Now it's back to J.D. Vance. Bergam now is in second, but who knows? Rubio reportedly out. He's reportedly out. Of course, it comes as the Republican Convention kicks off. And it follows an assassination attempt, of course, on Saturday. Given that backdrop, though, stocks are higher sharply across the board. The down the S&P, both hitting record highs. All three major averages, though, are off their best levels of the day. And Caterpillar is the biggest gainer on the Dow.

J.P. Morgan, Goldman, Goldman, they're also higher. Goldman had earnings. We'll have more on that later. Over in Big Tech land, Apple adding a couple percent. Netflix gaining on positive analyst commentary. And look at Tesla after Elon Musk's endorsement both verbally and monetarily of Donald Trump. The shares there are up another 4%. Let's get down to Mike. He's at the New York Stock Exchange.

And markets are picking up where they left off, Mike, but also with some extra steam. Without a doubt, yeah. Picking up where they left off last week. week with this really dramatic rotation into the areas of the market that have not worked principally for the past few months. That would be smaller stocks, the average stock in the S&P 500, more cyclicals, more financials. And yes, the indexes are off their highs at intraday records from earlier today, but you still do see that very pronounced relative performance. There's the Russell 2000 small cap relative to the S&P 500 over the last five days.

And so if you really went down the line, investors in the last several days have gained conviction, on several things. Obviously, inflation seems to be more persistently at a downturn, therefore more conviction that the Fed can ease before the economy weakens more noticeably. And of course, after this weekend and given what's going on in terms of the election probabilities, may be a more secure view in terms of the policy outlook. And all of that getting priced in. I do think the big question is, you know, the tactical setup, not so much the big picture. We do have earning season coming in.

You see an uptick in the volatility index today. just this general idea that we've come a long way and these rotations as as favorable as they might be and maybe as as long awaited as they have been don't always happen in the smoothest fashion. So we have to see how that goes. Yeah. And like you said, it doesn't always happen in the smoothest fashion. But people love to try to jump to what they think conclusions are going to be, right? I mean, they'll do you think that there's a lot to be from, it's like we said with the payrolls report? If I gave you the number, could you tell me what the market reaction would be? It's not always that easy. Without a doubt. What we do know is kind of what the market thinks it wants and what would be most beneficial. And a lot of times that lines up with how it plays out. But there's just too many other factors. And I always feel as if the market wants to rush to a point beyond an election just to know what we're working with here. Yeah, of course, you'd like the more business-friendly, eco-friendly policy mix. But you just don't really know how things are going to break along the way there. I mean, since inauguration day, 2021, the S&P is compounded at 13 percent annual office. I doubt a lot of people would have necessarily thought that was the case, and you had a bare market and a 500 basis point, Fed tightening cycle in the middle. It's a tough game to project. Yeah, meme, stocks, and all the rest of it, who could have seen any of it coming?

Michael Banks, Mike Santoli. A lot of investors wondering what to do with their money now. It's been a great year for the S&P up 18%. You take profits. You sit out political uncertainty or stick with what's working. Dan Suzuki is Deputy Chief Investment Officer Richard Bernstein Advisors, and Chris Seneca is Chief Investment Strategist at Wolf Research. Welcome to both of you. Chris, just real quick off the bat, do you have any data or kind of, you know, charts that would tell you, kind of point you to where you'd want to be?

Or do you do you do anything right now or do you just kind of sit and wait? Hi, Kelly. Thanks for having me on. No, I don't think you sit and wait. I think the trains left the station, right? Investors have been structurally underway, financials and energy in some other earlier cyclical areas of the economy, you know, not knowing at the end of the day if it's truly a late cycle or early cycle environment because there's very much. been mixed signals. And now I think markets are coming to the conclusion even for the event over the weekend that the Fed's likely to cut some time this fall, whether it's September, November or base case is September. And you potentially have the possibility of Trump winning the presidency and the GOP controlling Congress, which would probably lead to a more pro-growth and bigger physical package next year. So the positioning that we've seen, the moves we've seen

in the position of the last board of eight days, I think so have a lot of of room to run, namely financials and traditional energy. And I think these trends can continue because the stocks in those sectors are still very much cheap relative to the MagSat. It kind of bolsters, Dan, the rotation that appears to be maybe gingerly starting to take place. So like Chris said, maybe financials, maybe energy are places you look. But he also said the train has left the station. And again, nothing's ever certain certain. I mean, is there something to be said for waiting a few months or kind of just wait until November? or even to just say, is it such a sure thing to go with financials and energy even under the

fundamentals that you think would be supportive in a Trump presidency? Yeah, Kelly, it's a really good question. I think ultimately there's no need to wait for an election. I don't think that whether it's the election or the Fed, I don't think those are actually going to be the swing factors. If you're going to wait for anything, I think you wait to see what earnings are looking like because ultimately that's going to be the critical factor here. We're just kicking off earnings season. And a lot of these stories that have been cheap and left for dead are really showing me.

stories at this point. They've actually disappointed their earnings expect, they have disappointed relative expectations, but this is really a critical period where you should see that broadening out and big acceleration and earnings across the board here. So I think if you're going to wait for anything, I think that's what you wait for. But really, I don't think you need to wait. I think the signs are clear. You want to, you want to basically own the companies that are going to drive that earnings acceleration here. So if that's the case, earnings acceleration is the only story, And really, that takes us back to the MAG 7, doesn't it? I mean, maybe the Fab 5, but that's where we've seen 80% earnings growth, right?

Isn't that where you'd go, or do you think we get earnings acceleration in the financials and in energy? Well, Kelly, that's where I think you draw the distinction between levels and rate of change and direction here. Because certainly, you know, those large companies have the best earnings growth and it's really phenomenal. But if you talk about acceleration, you know, their growth numbers are actually decelerating here. And so if you really do want to own the sources of acceleration that have been left for dead, it's really in those traditional cheap cyclical areas of the economy that you've seen the rotation into both this week and last week. Yeah. I don't know. Chris, so where does that leave you? I mean, do you want to make any big calls on the dollar right in this kind of environment on bond on inflation?

I mean, I thought that actually Michael Darta made a good point over the weekend. He said, look, even as Trump's reelection odds have gone up, inflation break-evens have not. It's not as if the five-year, or the five-year-year forwards that those are, you know, kind of breaking out to the upside. They're not. The market doesn't necessarily seem to think his presidency would be inflationary. Yeah, you know, my view is that if there was a Trump win, what we call a GOP trifecta, the 10-year hits 5% by the end of this year. If you look at what happened in 2016 or even the blue wave in 2020, bond yields along the end shot up. And my guess is the physical package that gets passed next year, should Trump win, will be larger than a lot of market pundits are expecting right now.

So I think it's a bit of delayed effect. The bond market's sending a lot of mixed signals right now with respect to rates and break-evens. And I think short-term break-evens, Kelly, are always driven by the change in oil prices, is my view with them. So that would be the more important factor anyway. All right. Nevertheless, gentlemen, we'll leave it there. Appreciate it. Chris Zennek and Dan Suzuki. Did you want me to just... Listen, I know you must still have...

You know when you're on Squabbox, you're very deferential. You rarely insist on... I was showing... I did try to get in on Yon the other day, though. And I didn't... Now... Well, I'm being deferential. If there was ever a time...

Exactly. I know. We may be saying that name... Make a move. You give me... Listen, you know how to go... Give me a look if you want me to participate. I'll give you the elbow. Tell you what. I'll let you.

Let me interest. Santelli. I think you should. We heard from Fed Chair Powell in the last hour for a check on how bonds are trading where yields are moving. Following those comments, let's get to Rick Santelli, not Mike Santoli. Rick Santelli in Chicago. Hey, Rick. Yes, not Santoli.

Rick Santelli hit the Cibo. And you know what? At 1240 Eastern, a little late we saw Chairman Bernanke. from the Economic Club of New York. As you look at the charts, you can see at 1240 Eastern, we had VAL. The initial reaction was hope, rates went down, but ultimately rates are higher across the curve post-Paul. But the big news today, yield curves are flattening, no matter what permutation, what combination you pick, whether it's Tuesdays to tens, minus low 20s, that's the flattest that's been least inverted since third week in January, Tuesdays

hovering right around zero. It hasn't been at that level, really. since the third weekend in January, and we all know why. The market's going to pay a lot more attention to what's going on with the election without all the blaring negativity of Main Street media. Jim. How you doing, Rick? Obviously, it's been a wild weekend. I'm older.

Joe Kernan's older. We remember all the things that happened in the 60s and 70s assassinations. It's horrible. We never want to get back to that. But it did have a minor impact on the market. You've, of course, steepening, and other issues. Yeah, I mean, you've got to be watching kind of goal. and tips. There's a break-even story that's happened under the hood. I think people are getting

a little more nervous about what this means. It's not just about Trump being elected, right? Like, those odds have been in there for a while. It's much like Reagan, once the assassination attempt to happen, he had a much bigger, stronger ability to pass policy. So I think that's really important. And downstream, some of the other issues on the ticket are probably going to potentially go more towards the Republican side. What about the VIX? I'm not surprised. that the VIX isn't doing much, but a lot of people were. You've always had a good handle on volatility. Yeah, we've talked about the steeper in the yield curve, right? That's happening because they're talking about lowering interest rates in the short term, but what that might mean for inflation

long term, right? Similar here in the Vol curve, the Volkirv is steepening, right? It's steepening because there's more uncertainty down the line because of some of things happening. But in the short term, this means more certainty, and there's a lot more flow dynamics that are creating compressed volatility in the short term. So I think that's also an interesting dynamic to look for as you look for. You know, they call it to Donald Trump trade. It's not to Donald Trump trade. What it is, is that maybe we'll actually start to see more coverage of issues instead of pointing at the other guy with all this negativity. And the more you point at issues, the more you're going to be point to debt and deficits. Agreed. I mean, whether it's

Biden or Trump, the spending is out of control, right? And that's going to continue because we're in this populist environment where people want more money and want more inequality fixed. So I think that's not going to change. The rhetoric may come down, there may be more unanimity. But at the end of the day, that actually might mean we have more spending and more of the problems that we've been seeing in a more accelerated fashion. And it also might mean that we'll do less spending. We won't necessarily raise taxes on business.

And populism, another word for that could be patriotism. Chem, it's always a pleasure to talk to you. Thank you for joining me today. Joe Kernan, what are you doing there in the afternoon? Back to you. I'm imparting wisdom like you do, Rick. And, you know, there's some people call it age. I mean, we've been through things like this before.

People don't remember. I remember RFK, and that was one of the worst periods that I can recall. And who thought I would need to draw upon that experience again at some point. But I was trading gold futures in 1981 when Ronald Reagan got shot. That's when the CME was small in another building. We all ran into the TV room. There was actually a TV room. So, yes, I know how markets can move.

I think that we want to pay attention, but November's a long way away, and it's a whole different world with computers now in terms of how fast capital moves. But I'm right with you, Joe. All right. Good do. This is one of the good things about coming in and doing the show in the afternoon and seeing you again, Rick, and I'll see you tomorrow morning. Coming up, the course of this election, forever changed, obviously following what we were just alluding to the attempted assassination of former President Trump. Mega donors fighting each other. some Democrats reassessing their calls now for President Biden to not run again.

And Republicans rallying together at their convention, we're going to dive into all at next. Welcome back to Power Lunch. The Republican National Convention kicks off tonight in Milwaukee. We saw the assassination attempt on President Trump on Saturday. Reports now saying that Trump will reveal his choice for running mate today. Amon Javors is in Milwaukee. with the latest and off camera I was talking with Kelly I'm watching the the predicted site aim and it's wild and for one brief instant Glenn Yonkin was actually ahead of J.D. Vance.

J.D. Vance right now at 66 cents though, Yonkin 25. So I don't know. I don't know what you know who else is on there. This was weird. RFK Jr. is actually all on the Republican. Stranger things have happened, right? I mean, stranger things have happened. Look, let's get to that because there's a lot of stuff swirling around right at this very moment about the vice presidential pick for Donald Trump. We're expecting that we'll hear that later in the afternoon. But I want to start with just talking a little bit about some of the policies that are in the air here, and particularly on the tariff proposal that former President Donald Trump has 10% across the board tariffs for imports. Because that's an important one for the business community.

They're trying to figure out exactly how that would be applied, what that would look like, who would pay the cost, for all of that. I talked to Jason Smith, who's the chairman of the House Ways and Means Committee a short time ago. I asked him if he supports Donald Trump's across the board tariff proposal. Here's what he said. Take a listen. There's not many things I like across the board. I think you have to look at it doing situation by situation. Without a doubt, we have to push back on China. So, Joe, you tell me, but it sounded like a little bit of daylight there to me between the chairman of the House Ways and Means Committee and the nominee now for his party.

We'll see how all that gets rolled out if Donald Trump is elected, but clearly there is huge support for Donald Trump in this party. There is huge support for Donald Trump in this city and in this building behind me today. And we do expect to hear his selection for vice president at any time now, maybe minutes from now. There is a report out on the wires now that Senator Marco Rubio has been told that he is not the selection. I can't confirm that. I just spoke to a source familiar with the situation who said that the conversation around Rubio as a vice presidential pick has been tricky because of the issue of Rubio being from the same home state as Donald Trump.

That is Florida. There is some question about whether that would be legal to have a president and a vice president from the same state or whether that could lead to a protracted legal fight. That has presented difficulties for Rubio's candidacy as the vice presidential pick here. I would expect that that means that Donald Trump would lean in another direction. We can't confirm that Donald Trump has definitely leaned in another direction. And J.D. Vance, of course, at the top of a lot of lists here, the senator from Ohio, just 39 years old, wrote a powerful book about growing up in the Midwest in Appalachia

and rose to stardom at the top of his party very close with Donald Trump Jr. And very close with the Trump family. He is seen as a possible, likely pick. But there are others on that list. And as you say, Joe, we could end up with somebody that nobody sees coming because that's how this process works. lot of leaks have come out of the Trump camp on this vice presidential. You know, the predicted betting sites, if you remember 2006, you know, take your pick. They can flip like this from 9010 to 1090.

So don't take anything with this. But Doug Bergam now, Amon, has dropped 22 cents to two cents. Rubio is all the way down to one cent right now based on what you were just saying. But now Doug Bergam has joined. How recent was that drop? How reason was that drop on Bergam? Because there is a report that just happened within the past couple of minutes from the Fox News Network that Doug Bergam has been told that he is not the selection. That's what I mean. He's down at two cents. That's just a short time ago. I can't confirm that either.

No. But that is out there from another media outlet. So that might be moving those predictive markets. I'm sure. That's what I thought. That's what I thought it happened. J.D. Vance, 76 cents. And Glenn Yunkin is up 15 cents. But he got as high as 50 cents. He's only at 19. Right now. Did you just say 50 cents? Different. All of the scuttle butt here is J.D. Vance. Yeah. I can tell you. It's some Cincinnati kind of, Ayn. Just right around Cincinnati.

The question is... I'm a hillbilly. And the question is whether the scuttle butt jives with what with what Donald Trump wants, right? I mean, you know, like Donald Trump had a famously contentious end of his relationship with his previous vice president, Mike Pence, with crowds on January 6th calling for the hand. of Mike Pence and the two men splitting bitterly at the end of that administration over

what the vice president's authority was when it came to counting electoral college votes. I think that experience will loom large in Donald Trump's mind as he decides who to pick going forward. And the question is, does he want somebody with sort of an independent power base who is politically viable and strong without him, or does he want somebody who's sort of entirely dependent on Donald Trump for political oxygen, so to speak? I think that's a real consideration. It's hard to gauge how that would play out.

For a while, I thought it couldn't be Yonkin because he's just too tall standing next to Donald Trump. But now, you know, now the former president talks about how much he likes Barron's height. So now I think maybe it's okay to be tall. So I don't, you know, I know. It's different when it's your own son, though. I say this as a guy whose son is much taller than he is. It's different. It's okay when it's your son.

It's okay. You're right, Eamon. You know, this is kind of exciting. I don't know if I'd tell everyone. This is more fun. Drag it out. It's like the apprentice. It's been remarkably leak-free process, I've got to say.

We've been trying to get some word from all these different camps, and nobody's been telling us anything. And that might be because nobody knows anything. But there haven't been a lot of leaks on this. Yeah. JD-Vance, by the way, had three different last names growing up. You know Hillbilly, Joe. I know Hillbilly.

I love Cincinnati. I'm not, but I'm from the west side of town, which if we do lean that way a little bit. I'm proud of it. Okay, maybe a little bit. Proud to say. Proud to say about no allergies here. Amen, thanks.

Avan Jabbers, check back in. Saturday's assassination attempt, changing the tone of the presidential race with some Biden backers backing off and some Trump supporters. Speaking up, Megan Kassella is here with the latest. What mega donors on both sides are saying or not saying right now, Megan?

Hey, Kelly, that's right. The billionaires have waded into this political fight. Some Biden backers are on defense, while others are using their outsized voices to lend support to Trump. On the Republican side, both Elon Musk and Bill Ackman endorsed Trump just after the shooting on Saturday in social media posts that generated hundreds of millions of views. Both men had supported Biden in 2020, but they'd hinted in recent weeks that could be changing.

Their endorsements were then amplified by other wealthy donors already behind Trump, including David Sacks, who's set to speak at the R&C tonight, and the venture capitalist Sean McGuire. As for the Democrats, Biden mega donor Reid Hoffman was working to clean up comments he'd made before the shooting in which he'd reportedly said he wished he'd made Trump, quote, into an actual martyr. In a long statement Sunday afternoon posted on X, Hoffman said he'd only meant that he wished Trump had been held accountable for his lies about women. He also said he categorically deplores all violence, but still those comments were seized on by Musk and others. We're also seeing Hoffman's donor advisor, Dmitry Melhorn, walking back comments he had made just after the shooting

that suggested, without evidence, it could have been staged. On Sunday, Melhorn said he regretted the email and apologize for the distraction it caused. But guys, it all gives us just one more signal of where momentum in the race is at this point. The Biden campaign is mostly on pause and its surrogates are back on their heels while Trump is rallying support around him, including in Milwaukee. Guys. Man, oh, man. Thank you, Megan.

I mean, social media is, I mean, think, can you imagine? What? I don't know, tweeting something like that. I wish we had a better aim or, I mean, you can't, you don't, things last forever. But yet, but yet following the events of the weekend, you're still so grateful for it. But whatever, it's right, right, right. But I just mean, why it throws something into that? That you'd say, I wish I had made.

I mean, you read Hoffman and you say, I wish he had become a martyr? It's just beyond the hell. You try to find that way of, yeah, I don't know. Let's dig in to what all the political road ahead will look like for both former President Trump and President Biden. Join us now for more. Sarah Fagan, a deep root. A

Analytics, a CEO, and a Republican strategist, along with Ari Aramash, attorney and Democratic strategist. I guess I'll decide who to address the truth first, but the overriding question I have is, are both camps going to be able to bring it back into decorum based on what happened? They promised they're going to do this, Sarah. what are the chances that former President Trump stays on the high road between now and November permanently?

Well, I sure hope he does. You know, I think it's helped him tremendously take, you know, the way he conducted himself during the debate and the aftermath of the debate, I think, was incredibly tactfully done. He didn't go at Biden very hard as he was stumbling on the floor. And in the aftermath, he said nothing. And then, of course, we saw his campaign very aggressively urge its supporters and its staff to not inflame the situation. So I think that's a very positive sign. You think you rewrote the speech? Think the speech is going to be totally different than what we're used to it?

No slash and burn. Crooked Joe, none of that? It's a great question. I think that he would be wise to sort of leave some of, you know, those jazz. out. He can make his policy points. Look, right now what's happening in this race is the Democrats are just the fact that Biden goes out every day or almost every day and is on camera is doing all the work for Trump. Trump doesn't need to say anything about Biden. Biden is showing his challenges and his weakness every single time that he's on air.

Ari, I mean, I can ask you the same question in much more strident terms. Are we going to hear fascists? We're going to hear dictator. We're going to hear Hitler. We're going to hear felon. We're going to hear, I mean, it's been beyond the pale, what we've heard, focusing for the last month coming out of the Biden campaign. Ever going to talk about immigration or any policy? Or is it all about Donald Trump, bad orange man?

You know, the rhetoric has been taken over by the fringes in both parties. One side calls President Trump or former president. President Biden's not the fringe, all right. Well, calling somebody Hitler. Okay, not Hitler. Dictator from day one. Still conflates bloodbath in the auto industry with there's going to be a bloodbath if he's not elected. All those things.

I mean, after Saturday, are those off the table? This kind of rhetoric has been destructive from day one. Trump did it. Biden is doing it. We did it to President George W. Bush when we called, you know, so many people in my party called him Hitler. it was wrong then, it is wrong now, and it should continue to be wrong. Hitler was Hitler. Stalin was Stalin. You know, the Democratic Party is not the Communist Party, the Republican Party is not the Nazi party. That's that. Now, we can go after President Trump

on a whole lot of issues. There's actually substantive and character issues we can go after him, but to call people the name of a man who caused the death of 70-some-odd million people, it's just deplorable. But let me back up. I think, The correct President Trump is it. That's a loaded term, too. Ari, we've heard that one. Yeah, well, you know, I'd like to reclaim the English language from time to time. But the chances of tonight's speech of going back to President Trump, I really hope he takes this opportunity, he takes advantage of this opportunity.

He has a chance that RFK didn't have. He has a chance that, you know, other presidential candidates who got shot and didn't survive didn't have. He's been president for one term. He's been very divisive. But now he can come around and do two things. A, pick a vice presidential or a running mate that can appeal to some extent to moderates and to Democrats. That would go a long way. But secondly, extend an olive branch to Democrats and to independents.

Do something you haven't done in the past six, seven, eight years. You know, forget about lock her up and lock him up. Extend an olive branch and see how far that goes. And I guarantee you in New Jersey will be in play. I guarantee you some other states like Minnesota will be in play. But you know what chances of Trump doing that are pretty minimal? I hope he does that. I hope he sort of extends and goes above and beyond.

But we'll see what happens. But again, my party and the president's president Biden's campaign are not doing well. I called on him to withdraw from the race two days ago. I think both the country is ready for a younger, more charismatic and with a clean slate kind of candidate. All right, God, you're so, you're giving all of some really great tips on how to win some of these states for President Trump. Do you have any, can you give Ari any advice for President Biden? Or I get what you say you want President Biden not to be the nominee, all right? But let me get to Sarah.

Well, look, the president's going to have to make his decision. And right now it appears like he's not getting out of the race. And there's no signs or evidence that he's going to. So if that is the case, and that continues on that trajectory, Donald Trump is headed to 360-ish electoral votes. States like Virginia, New Hampshire, New Mexico, Minnesota, they will be in play in this election under the current trajectory. And so I don't, I'm not very hopeful for Democrats right now. And I think that the way that Trump has handled the last two or three weeks has really solidified his position. And so I think Republicans will have a big party in Milwaukee.

I don't think any of us know what that must feel like to come within millimeters. So you never know. You never know whether someone has permanently changed from that. Thanks, Sarah. Sarah Fagan. Ari Aramis, thank you. I will be curious. This is kind of neither here nor there, but, you know, secret service, security. What do they do now? You know, how does that change? We'll get into that later. I don't know if I'd go along the head of the Secret Service right now. I don't know what the half-life. That's a big question hanging over all of this.

Further ahead, we'll take a look at Google's risks with the regulators. It's making a bid for the cyber firm whiz, despite potential backlash, at least from this administration. think it's worth the trouble. We'll explain in Tech Check. Welcome back to Power Lunch. I'm Julia Borsden. Here's your CNBC News update at this hour. Secretary of State Anthony Blinken met with key Israeli officials today for ongoing talks on a ceasefire with Hamas. Israel's national security advisor later confirmed that Israel is still committed to reaching a deal under the terms laid out at the end of May by President Biden. Hundreds of fans who purchased tickets to the Copa America's soccer championship in Miami Sunday. Sunday night never made it inside. Hard Rock stadium operators say a number of unticketed fans

broke into the stadium and once it reached capacity, they had no choice but to keep fans out. Argentina won the match against Colombia, which started 90 minutes late because of the mayhem. And a new discovery could provide shelter for future moon explorers. Scientists published a study today finding evidence for a sizable cave close to the area where U.S. astronauts first landed on the moon. They say this cave and some 200 others could protect astronauts from cosmic rays, solar radiation, and even small meteor strikes. Power Lunch will be right back. Welcome back to Power Lunch. Del's up 242 points.

Over 40,000 by about that margin right now as it continues the run it's been on. S&P higher, NASDAQ just within reach of its all-time highs as well. And Tesla is the top performer in the NASDAQ 100 and the S&P today with a nearly 4% pop. new numbers showing strong demand for EVs and hybrids. Phil LeBoe is looking at those numbers for us. And hybrids have been kind of the strong point lately, Phil, but now even EV market showing some strength as well? It is.

Both markets showing some strength. But as we show you the market overall, remember, we are still an internal combustion engine market in the United States. 81% of the vehicles sold this year have been ice models. That doesn't mean that you're not seeing growth with hybrids and EVs. sales up 15% compared to the first quarter, second quarter to first quarter. A couple of stocks to point out here. Toyota, their hybrid share stands at 48.6%. They are still king of the hill when it comes to hybrids largely because of how many models that they offer in that category. But Ford

is also doing well when it comes to hybrids. Look, the F series, the hybrid versions doubled Q2 to Q1, up 36% for the company overall compared to the first quarter. And in the EV market, it is still Tesla that leads the market with more than 50% share. But there you see ahead of number two, Hyundai Kia. Then you have Ford, GM, and BMW, which is quietly but effectively been growing its EV sales coming in at number five. A couple of stocks we want to point out here. First off with Hyundai Kia, keep in mind that the company's first U.S. pure EV plant is going to be opening in the fourth quarter of this year. And then as you take a look at shares of Tesla, remember, we get the Q2 results next week. And that's what everybody's going to be focused on, guys.

I also wonder, Phil, how much it's the delay of the August event, though. I mean, the stock seems to be shrugging it off right now. Well, but Elon Musk pointed out, somebody asked him on X, and he posted on X, we've got to make some changes with a couple of the models that we think are going to make it even better, and we're going to be able to show off some more futures. So the question becomes with the Robotaxy, okay, if it's not going to happen in August, which is the report in Elon Musk essentially confirming that, do we get it in October, Do we get it in November?

And what do we get when that happens? Yeah, expectations will only build probably as a result. Phil, thanks for now. We appreciate it, Phil Leboe. Solar stocks are under pressure. Today, as the odds of a Republican victory moved higher after the assassination attempt on former President Trump. Solar Edge, by the way, also raising concerns for the sector as they announced the second round of job cunts this morning, and the shares are down 14%. Our next guest, neutral on the sector.

See some bright spots ahead. Let's talk to Corinne Blanchard, solar and clean tech analyst at Deutsche Bank. Corinne, just to point out, the solar stocks doing quite poorly under the Biden administration at this point, too. So I guess they're just not expecting any lift if President Trump does win. Hey, thanks for having me. Sure. I think, you know, we have a pretty limited impact, actually, we would say, depending on who is going to win the election. We're actually saying that if Trump administration come back, we should see maybe an impact on ITC.

we could impact residential name like Nova or Sun Run. But we believe that the 45x tax credit would be pretty protected. So company like FES Solar and Enfaz would be probably best position, actually, in the case of a Republican win. Oh, interesting. And so what would you say? I mean, is there any way that does the candidate victory matter so much? Or is this just going to be a tough road either way?

I think it's a limited impact. I would probably say it's maybe a top fraud. Look, I think for residential name, again, like Installer, like Novi, Run, Sunpower, I think you need a most favorable environment. So you need macro and interest rate being cut down. That could happen toward the end of the year. But I think most investors are going to be wanted to wait until the election. So it's kind of a static cause situation, I think, for those names. On the other side, I think, name like Enphase could actually see a, a positive momentum next week when they go into reporting. I think investors are ready to turn the page on the company and management. If they come positive on the call, I think could be an interesting move next week. All right. And Faye's always seen as perhaps the best in the bunch. You've got a chance to kind of prove that.

Corrine, thanks so much for your time. We appreciate it today. Thank you. Coming up, Google's parent company, Alphabet, reportedly nearing one of its biggest acquisitions ever, a multi-billion dollar deal to acquire the cloud security startup known as WIS. The WIS, it's not the WIS. We're going to get the key details in Tech Tech. Next.

Google's parent company, Alphabet, now nearing a record $23 billion deal to acquire the cloud security startup, WIS. Nobody beats the WIS. That's the focus of today's Tech Tech with Deer Drabosa. I know you don't remember that, but that used to be. an ad that we saw on the East Coast all the time. Nobody beats a Whiz. I am familiar with it. I couldn't put my finger on the exact one, but at least I've heard it before, Joe. Yeah. Let's talk about the regulatory environment, though. It's anything but friendly towards M&A, especially a mega cap that

wants to do the acquiring. But Google also knows that it needs to boost its offerings in cloud computing, where it remains a distant third to Amazon's AWS and Microsoft's Azure. So, CNBC has confirmed it may be willing to take on those regulators for Wiz. Wiz. Wiz is a is a darling in the world of venture capital that has quickly climbed the ranks of cybersecurity in just four short years. It is a cloud native company startup. And according to the company itself, it hit $100 million in annual recurring revenue after just 18 months. Now look at the chart on your screen. It's telling us that it is the third largest cloud security vendor by ARR behind Palo Alto networks and CrowdStrike. And it's growing three times faster

than the leader there, Palo Alto. I spoke to the CEO and co-founder, a soft rap report a few months ago, on the heels of raising a billion dollars valuing his company at $12 billion. At the time, he wasn't in any rush to sell or go public, but a Google deal for $23 billion, if that does come to fruition, would represent nearly double that last valuation. Now, under the current FTC and DOJ, other deals have been scrapped and painfully so, like Adobe's failed bid for Figma, where they paid a billion. breakup fee after a year of trying to get it through the regulators.

But deals do take time and a potential Trump administration is seen as friendlier towards M&A activity. One other piece of this, guys, I want to mention, a deal would represent a rare exit for the venture capital backers of WIS. As IPOs and M&A activity remains muted, Sequo Capital is one of those early backers. And also today, news that it is offering to buyback shares in Stripe, another darling that has been private for a very, very long time. all in order to give its LPs some liquidity.

And that is really what's changed over the last few years is a few years ago, you saw a lot more M&A, a lot more IPOs, and that just remains completely muted in today's environment. That $100 billion number is incredible in the time frame that you talked about, Deirdre. And, I mean, at least it's not selling at a multiple of revenue, right? I mean, that's pretty good. What was the other thing? Oh, really one of the biggest things Alphabet ever bought, huh?

So YouTube? By far. Yeah, how much was YouTube? That was quite a record. YouTube, I want to say around $2 billion, maybe five, at least less than. There we go. Okay. Yes, almost $2 billion.

I was right. And then the biggest acquisition after this was Motorola mobility, $12.5 billion. That did not work out so well. It ended up selling that company at a loss. Mandiant, though, the second one from your left on the screen. That was successful. And that's what's really given Google Cloud a leg up in security. So it kind of wants to continue that trend.

And it could raise the stakes for an Amazon and Microsoft to do some acquisitions itself in the cybersecurity space. There's so many things. I think the fact that this company is a few years old and is worth this much. It's a cybersecurity. I've never heard. I'm not saying that I would hear about it. Maybe it's B to B. And that they would do a deal this size still under this administration.

When everyone knows nothing's going to get done, maybe they just think it'll take too long. I immediately said, why weren't we e-majors or computer science? Why did we, what did we, what was, you went to biology? Why did I? It's also, I mean, its founders are from Israel and they've had a lot of successful cybersecurity companies. So you would have wanted to study there maybe. Probably because we would have flunked out if we were. I certainly would have. Yeah. Deirda thanks, dear Jor Josa. Alta Beauty is lower after Oppenheimer cut its price target for the shares after recent struggles. We'll trade it ahead in three stock lunch. Welcome back. It's time for today's three stock lunch and we'll start with Goldman Sachs after they beat on the top. top and bottom lines this morning. Here with our trades, Jeff Kilberg from KKM Financial,

also a CNBC contributor. Jeff, you stick with Goldman. You ride it from here? You do. All-time highs, Kelly. I think you remain a buyer, hold your position because they had a phenomenal quarter. If you look, they brought it over $3 billion.

And yes, this is an optimistic sign that capital markets are returning. But look at the fixed income trading. Back in the days when I was trading in the pits in Chicago, we always took notice what Goldman was doing in trading. They were up almost 20 percent beating expectations. and their asset management was up nearly 30%. So I think it's going to make new highs

hang on to Goldman Sachs. Stocks. No actual food still. Super Micro. Super Micro. It's had a huge run. And it's going to join the NASDAQ 100 next Monday replacing Walgreens boots. Jeff. What about it? Well, Joe, nice to see your hands in face midday here. I thought he'd be on the back nine. But yeah, Super Micro

down about 25% of the end of the day. I think you take some profits here. This is like a baby Nvidia. If you look where it started the year, Joe, it was trading about $285. So to see this parabolic move, I think you take some profits, but you never want a shorter name like this. You can take it out in the body bag. All right, let's move along to the final name, which is Alta Beauty. They've got several price target cuts last week. Oppenheimer removed it from its top pick list. This had been one of the secular winners of the 2010s, Jeff Kilberg. What happens to it during the 20s?

You know, it's fascinating to see it's breaking its 2&A moving average. I want to be a buyer here, though, But I want to use options to establish this exposure. I just looked at the 395 puts going out one month, Kelly. You can collect about $11 on that. So I think it makes sense to sell puts here versus buying it because it wants to back and fill that $375 level. But I like it. It's the best of breed and they make a lot of money with high margins.

All right. Jeff Kilberg, thank you very much. We appreciate your time. And markets broadly, Joe, pretty much at record highs. And the Russell 2000s leading the way again. Continuing what began as this kind of rotation last week and maybe now with what? Just fancy schmancy.

Sell puts, that's perfect for you. Safe. It's one of those, like, leave the light on. You would know more. You would be able to actually, I would have to sit there going like. A great strategy. You acquire the stock or you keep the premium, one or the other. I don't even get the joke.

Yeah, you don't. But thank you for being here. A lot of times, thank you for having it. I really appreciate it. Thank you. Thanks for watching, Pyro Lunch, everybody.