Power Lunch - Playing Politics, Power House Road Trip: Day 2 9/26/23

Episode Date: September 26, 2023

President Biden joined auto workers on the picket lines in Michigan today, with former President Trump expected to hold a rally there tomorrow. We’ll assess the political and economic impact of the strikes.Plus, it’s Day 2 of our Power House Road Trip. And we’re heading to a hot under-the-radar market: Dayton, Ohio. With interest rates surging near 8%, how is it playing out with buyers and sellers? We’ll find out. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Welcome to Power Lunch, everybody. Alongside Kelly Evans, I'm Tyler Matheson. Coming up, President Biden joining auto workers on the picket lines today in Michigan, former President Trump holding a rally there tomorrow. We're going to assess the political and economic impact of the strike as it shows no signs of ending anytime soon. Plus, day two of our powerhouse road trip. Today, we head to another hot under the radar housing market. That would be Dayton, Ohio, home of Courtney Reagan. Interest rates jumping above 7.5 percent. So, How are those rising rates playing out in the marketplace, Kelly? Excited to find that answer out. Hi, everyone. Let's get a quick check on the markets with the Dow just off session lows. We were briefly down more than 400. Down 360 for the blue chips, down 1.3% for the S&P to 4282. And the NASDAQ, the laggard, down 1.3%.

As you might imagine, big tech names are leading the way lower. Amazon, Google, even Oracle seeing 2 to 3% declines today. We'll have more on that trade coming up. And also on the housing front, another week number out today. sales down 8.7% in August. The home construction ETF down nearly 9% just this month. And a big biotech mover to tell you about as well, amutivant soaring 90%. The company's drug succeeding in a trial and giving hope it could be an effective treatment to many autoimmune diseases. Ty, again, ticker IMVT. All right, Kelly, thank you. And as we mentioned, the auto worker strike,

heating up and getting more and more political. President Biden joining the picket line earlier today. and we sent two of our best there as well. Phil LeBoe and Brian Sullivan. So, Phil, let's begin with you. Give us the latest developments. Tell us where things stand. Oh, about a half hour ago, the president wrapped up his trips to a trip to a GM parts of distribution center, not far from here in Belleville, Michigan. This is what it looked like as the president was greeted by a number of UAW members who were walking a picket line there. I wouldn't say the president walked a picket line. It was more a case of him meeting those who were on strike. But he did say, through a bullhorn, it is time for the automators to give back. And then there's some video that's making its way on Twitter of somebody saying,

hey, do the auto, should the UAW members get a 40% raise? It appears, he says, yes, though it's not the cleanest of audio. I'll be curious if we see the White House walk that back. Here's the president talking about how it's time for the automakers to give back to the workers who have made sacrifices about 13 or 14 years ago. Wall Street didn't build a country. The middle class built the country. Built the middle class. So let's keep going. You deserve what you've earned and you've earned a hell of a lot more than you're getting paid now.

What's the reaction of the automakers? We have heard from Ford saying that Ford and the UAW are going to be the ones to solve this by finding creative solutions to tough issues together at the bargaining table. We have a shared interest in the long-term viability of the domestic auto industry, the industrial industry, the industrial Midwest and good paying manufacturing jobs in the U.S. As you take a look at GM Ford and Solanthus shares, keep in mind that a big concern people have had is, what's going to happen to the inventory now that you've got three final assembly plans shut down? These are not super high volume vehicles.

They are important to the automakers, but inventory levels, according to J.D. Power, they have not changed. They're roughly the same as where they were on Friday the 15th. So that's where we stand as the president is going to be rapid. up his trip here to Michigan. Certainly fired up the UAW members who believe that this is, it can't do anything but help them in their cause, Brian. Yeah, and we're going to be doing last call tonight, 7 o'clock live the entire hour from here. There's obviously other news out there, Tyler, but this is going to be our focus. Phil's been doing great reporting. It's critical to

America as well. You can see it. Yep, a lot of support, a lot of horns being home. By the way, Tyler, we tried to get to that GM plan, our side, and we ran into the president's motorcade almost literally and figuratively, if I told you it was a hundred cars long, I'm not exaggerating, I posted video to X as well. We tried to get closer, kind of blocked off. Very heavy security presence here as well. Maybe the president will come to this facility. We're not sure. But Phil and I are going to kind of double team it tonight. And I did have a question for you, Phil, which is we talk a lot about that 40% number, okay, the 40%. How would the, let's say they get it. How would a 40% raise work? Is it all up front? Is it all up front?

Is it 10% a year over four years? Well, it's four and a half years goes through May 1st of 2028. That's the proposed contract. It would likely be 20% right off the bat and then 5, 5 and 5. That's how they plan to structure it at this point. But let's be clear, the automakers at this point are offering approximately 20% or 21% over 4.5 years. So there's still a huge gap in terms of simply the wages. And then there's a whole bunch of other issues, wage tiers, cost of living adjustments,

and some big news today this morning. I saw you covering it earlier about Ford, and I'm using air quotes if you're listening on the radio, pausing work on a $9 billion battery plant joint venture north of Detroit with China. Tell us about that. That seems like a really big story. It is a big story. And Adam Jonas just put out a note from Morgan Stanley not too long ago saying he wouldn't be surprised if we start to see more OEMs, that's GM Ford's Stalantis. causing their investments. Not because of the UAW negotiations going on, but just because there is a moment here where they have to analyze, okay, can we do this competitively, which is the word that Ford used. Ford used the word. We have to assess if we can competitively run this facility. What does that tell you? That's a trigger word. And the UAW put out a statement minutes later saying, here we go. You're trying to shut down a plant before it's even open. This is another case where we want to transition to EVs. You've got. got to work with us. Clearly that's a sticking point between the UAW and Ford.

Well, but standing here a little bit, not as long as you, haven't seen a lot of EVs roll through. But Tyler, we do have a big show tonight. We've got Michael Moran. I wish he was good. I got a lot to say. Roger and me, documentary maker, I wish he was going to be here in person. We got some Congress folks. I'm going to wait off into the crowd. I'm going to drop the name of Phil LeBoe. So, you know, I'm protected to go talk to some of these strikers behind us here. Try to get the voices, not only tell the local story, but the national story as well. because as Tyler, the longer this goes on, University of Michigan said if all three strike in a big way for eight weeks, it could result in over one million jobs lost across the United States.

We're a long way from there yet, Phil. Oh, yeah. But that's a Michigan estimate. This doesn't seem like we're getting any closer. I don't think we're closer. If somebody said to me, do you think we're going to see a solution by Friday? I would say no. And I listen to him.

Yeah, well, always wise to listen to him. I am telling you, seeing you and Michael Moore wrestle it out tonight is worth the price of admission. It's free, folks. Tune in. It's going to be awesome. You really can't overstate, can you, gentlemen, the political importance of what's going on in Michigan right now? Today the president is there. He has clearly put his stake in the ground on the side of the UAW.

Former President Trump is arriving tomorrow for a rally, and he, last week, was a extremely critical, among other things, of the UAW and its leadership. Who would like to pick up on that? Well, we were just kind of you saw us. Yeah, I'll pick up on it because I was in Grand Rapids, Kent County, Michigan, during the 2020 election. We were there for actually three days. And Kent County, Michigan, you could argue, is one of the five most important counties, not in Michigan, but in the United States, because it tends to move like Erie County, Pennsylvania,

Kenosha County, Wisconsin with the elections. I'll give you the example. Donald Trump won in Michigan, the state of Michigan, by 0.3% in 2016. Joe Biden's margin of victory, a little bit wider, about 154,000 votes in 2020, but not by much. You could make the case, Tyler,

that aside maybe from Georgia now, Michigan and Wisconsin are two of the most important. That was loud. Two of the most important swing states in the United States, and the vote and the endorsement of the UAW will be critical to that. And the UAW, and correct me if I'm wrong, has not given its endorsement yet. They haven't endorsed anybody. And let me be clear about this, because I've heard from people, friends and others who have, you know, texted me and so forth. And they've said, well, yeah, that's, you know, they're all Democratic.

They're just, they're going to go for Biden. No, they're not. No, they're not. Talk to the rank and file here. A lot of Trump supporters here. Look, some have said it's about 25 or 30 percent Trump supporters. I don't have anything to back that up, but I can tell you this. When you talk with them, sure, there are people who are appreciative of Joe Biden being here today.

But there are a lot of people who are supporters of Donald Trump who are out here picketing. I went to, you get, Tyler, I'll give you a quick anecdote, went to a place called Steve's Coney Island. They have Coney Island, don't call it a hot dog. Just about an hour ago, about three miles from here. A Ford guy came in, had the Ford shirt on. I was trying to talk to him about what we saw at the motorcade. And he said, I got no time for that. blank and you can fill in the blank. So it fills point, they lean Democrat, but this is a different

kind of Democrat. Yeah, I would agree with that. I would agree. And look, the rank and file, it's not a lock hold for the Democrats. It's not a monolith anymore. The UAW and labor generally is not a monolith by any stretch of the imagination. Gentlemen, we'll be continuing our coverage during the day. And then, of course, tonight, Brian, on your program at 7 p.m. Eastern Times. live from Michigan. Phil and Brian, thank you. And as the president, as you can see, that news headline appeared to say yes. When asked if the UAW should get a 40% raise, that headline nearly an hour ago could have been what pushed us towards session lows. We've recovered, but the September swoon is in full effect as the major averages continue adding to those recent losses.

The NASDAQ down more than 6% this month, 9% off of the high from Lake July, almost in correction territory, even with a still 25% gain on the year. Microsoft, Apple, and Nvidia, having the biggest on the NASDAQ, NVIDIA, down nearly 15% in September. But our next guest remains fully invested into the end of the year. Peter Anderson is Chief Investment Officer at Anderson Capital Management. And you're not in those stocks, are you, Peter? Yes, I do own NVIDIA. And I've owned NVIDIA since almost the day I was born, frankly.

So I've been through some rough times with NVIDIA in the past, and this is no different from those past rough times. You have a kind of the Warren Buffett Punch card approach here, or why not sell at some point and go, okay, you truly can't get any better than this? Well, I think you have to focus now on interest rates and this whole narrative about hire for longer. And I've actually switched that to higher forever because I think a 7% mortgage rate is a equilibrium rate. And it's just that we've kind of forgotten, Kelly, prior to 2007, those of us that were around before then, you know, interest rates were higher then. And we still had market rallies. And technology can still do well in a higher interest rate, despite the mathematics behind that that we've heard ad nauseum about higher interest rates. But Peter, let me just- Values, discount the stock price. I'm glad you brought this up because if you said, well, you know, you know, 20 years ago, interest rates were at these levels. Well, 20 years ago, we almost had a budget surplus.

And really the budget picture couldn't be worse right now. I don't really understand how it's going to get solved. Does that make this time different? Because we could potentially have kind of yields spiraling for the wrong reasons and for reasons we haven't really had to confront before. Well, I think the path that we took to get here is extraordinarily different. You know, when you look at the history of interest rates and stock market performance, et cetera, you know, these past COVID years were something that no economics textbook is going to prepare you for.

So it is different this time. But we also have to have faith in the fact that, you know, it's risk in return, companies that are going to achieve excellent results, regardless of what the interest rates are. I mean, I was joking with a friend the other day saying, do you think Nvidia, for instance, in their C-suite, do you think they ever talk about making investment, decisions or corporate decisions based on what the Fed said at the latest press conference. I don't think so, and I hope they don't. But that gives us a little bit more of reality about, you know, the balance of this. We have to focus on the economics, but it isn't all we need to focus on. Let's talk a little bit about the persistence of higher rates.

I mean, you and I are certainly seasoned enough, note my word choice there, seasoned enough to remember when a six, or a 7% mortgage rate didn't seem all that utre. Now it does. What is the effect there long term if rates settle at these higher levels? Inflation settles at a somewhat higher level than the fed's 2%. I've thought about that a lot, Tyler. And at first, I'm thinking, well, you know, if that is the equilibrium rate that we've had in the past, so be it. And we can have economic rallies. However, I do think the impact is on residential real estate. You know, when you were paying a seven or eight percent mortgage, you didn't mortgage as much as you would

have to now. So I think it's going to cut out a lot of lower income people that just will not be able to afford the payments. So that's the main thing. But other than that, I think companies will chug right along. I think we will see more acquisitions, more M&A activity. Again, with the idea that I imagine in the C-suite offices, they're not talking too much about, gee, should we postpone this acquisition because rates are at seven or eight percent? I don't think that that's happening.

I think it's more based on the strategic analysis of companies combining with each other and the outlook for the products, frankly. Peter, as always, great to see you. Peter Anderson, we appreciate it. Thank you. All right, as stocks sell off to end this month of September, just a couple of days left,

to bond yields moving lower two, pulling back from their near 16-year high hit yesterday. So let's go out to Chicago where we find Rick Santelli, who's going to explain it all to us. Rick? Yes, and the pullback wasn't very much of a pullback. As a matter of fact, we now see that all yields from twos out to 30s are back up on the session, and with a 455 yield in tens, not far from the intraday highs of this cycle. and long maturities, Tyler, keep leading the way. Look at twos and tens for two weeks on one chart.

Look at the way the yellow line separates off to the top there. Now, I just noticed, did an audible. You were talking to the last guest about historic interest rates. Well, today is close to the anniversary of the all-time high yield and the cash tenure. And anniversary dates for you, gang technicians out there are always important. So, 43-year chart, but it was September. I think 30th of 1981, we almost hit 16% in that 10 year. So we want to pay very close attention to the notion that we're going to have a top rather soon.

Now, it isn't going to most likely be the top, but it could be a top. And that chart also demonstrates there's room to run to the upside. Boone's closed an 11-year high yield today at 280. And the dollar again pays for a fresh 10-month high close. fifth consecutive higher close in a row. Tyler, we're both pretty seasoned. Back to you. I love that, Rick.

Thank you very much. Indeed we are. And seasoning is always good, isn't it? We love it. Coming up, the FTC finally coming out with its lawsuit against Amazon long away at 17 states joining the agency in saying Amazon is a monopoly. We'll bring you the FTC's case

and Amazon's response in tech check next. And a power check now, ResMed, the medical equipment, company, Goldman Sachs, saying the stock could rebound. Following a recent sell-off and Sintas, the uniform company, is the biggest decliner in the S&P 500, even though its results this morning, beat estimates and it raised guidance. Only slightly. We'll be right back. Amazon shares falling 3.5% today. Big drag on tech stocks. The FTC and 17 states now suing the company, saying it's a monopoly. Let's get to Deer-Darboza for more in today's tech check. Peter. Tyler, so this lawsuit it essentially targets Amazon's prime flywheel, which is the crown jewel of the business model.

It encompasses everything from logistics to third-party sellers to its booming advertising business. Amazon, it did hit back shortly after the suit was filed, saying, quote, this makes clear the FTC's focus has radically departed from its mission of protecting consumers and competition. Now, the showdown itself, it could be make or break for the FTC or for Amazon, depending on the outcome. This could literally break up Amazon's different businesses, or it could embolden the company to do more deals. It could also be the final blow to Lena Kahn's credibility or give her the teeth to take on more battles against big tech at the FTC. Now, remember that Kahn came into this position determined to hold big tech accountable, but we went back and we looked at the record and it hasn't been great for her in the FTC so far. Three of Amazon's five biggest acquisitions, they have been done while she's been in charge. MGM, one medical, and I-Robot.

I-Robot, though, hasn't yet closed. But there's also all the investments in generative AI. This is just a few of the biggest ones. Hugging Face. There was up to $4 billion for a minority's sake in Anthropic announced just yesterday. These are more creative ways for Amazon to bypass the regulators, but it gives the company an edge

and it could even ensure its dominance in the next platform shift generative AI. Not to mention it does build on top of its already number one position in cloud. So taken together, these deals, and they just happened over the last few years while Khan has been in charge, they have made the prime ecosystem and Amazon itself stronger and more entrenched exactly what the FTC guys is trying to dismantle. So this is a win that Lena Khan and the FTC certainly need. It's going to take months and potentially years to figure out the impact, though. Is the FTC principally going, Amazon is many things. It is a cloud company. It is increasingly an AI company, but it began as a retail company, basically a bookseller, but it went to.

long past that long time ago. Is the FTC mostly going after its retail operations and saying that they're causing higher prices and so forth, or are the other businesses included as well? It's focusing on that core e-commerce business, and it's looking especially at the role that Amazon services played a third-party merchant and how it kind of keeps them,

they might argue, trapped into that flywheel or ecosystem. But really, you're right, Tyler. Amazon is so many things now. That's why I always call it an ecosystem. because the reason they have prime video is to lock people into the prime system so that they buy more on the website and so that they can sell more advertising dollars. It all works together. And I guess that's a big question.

If you split it up, does it work as well? Certainly some on Wall Street think it could even work better, but you're seeing maybe some complacency or maybe not really a lot of worry on Wall Street because the stock was already down today. And I'm not sure it ever really moves much on regulation. Yeah, I didn't even think to mention video delivery and, production, which they're very big in as well. And grocery? I mean, there's everything. Yeah, there's everything. All right, Dieter, thanks. Appreciate it. Deerbosa. Quick programming note, the FTC chair, Lena Kahn will join Squawk Box tomorrow morning. She will address this Amazon lawsuit and more.

That's live at 8.30 a.m. Eastern Time, the chair of the Federal Trade Commission. That's a no-miss interview. As we had to break, it's almost time for delivering Alpha. Join us in New York City this Thursday, convening business leaders to provide insights to help you minimize risk. and maximize returns. Tickets are still available. Scan that QR code or visit cnbc Events.com slash delivering alpha. Power lunch is back after this. Welcome back. It's day two of our powerhouse road trip. We've gone from Poughkeepsie to Dayton. We're getting an in-depth look at what's happening in different housing markets around the country, especially wanting to know how far a million dollar budget really goes now. Yesterday we were in Poughkeepsie, New York. Today we're heading

to Dayton, Ohio, which saw its housing market heat up during that shift from to work from home. Number 74, now on Zillow's top 100 metro areas by size. Dayton prices are up more than 11% from last year. Just under half of houses are selling above list price. Here to tell us what it's like on the ground is Chip James. He's a realtor and luxury specialist with Keller Williams community partners in the Dayton area. Chip, welcome. Hi, Kelly. Thank you so much. So would you say the market there is more balanced these days? Well, it feels like it's starting to balance out because for the first time in years, we have buyers that seem to be heading to the sidelines a little bit. And so it's sort of a wait and see approach for us in the business to see how this plays out over the next couple of months.

Prices are up, but in part because supply has declined, I think you said, declined even more than it's already low level of last year. So in terms of price, the market is healthy. But from where you sit, how are volume of sales? In other words, how many sales have you done this year to date versus last year to date? Is it the same, higher, lower? The market in general, from a sales perspective, is down 10 to 15%. Thankfully, I'm blessed my businesses up a little bit year to date. But, you know, our inventory is just so tight.

There's really nothing available. And so this shift with buyers, you know, not being able to afford as much and for interest rates going so much higher, it hasn't really impacted the good houses yet. So we're still seeing a really what feels like a fellers market. I want, you know, my favorite part, Chip, is seeing the houses. So if you don't mind, let's look at this one. It's a little over our million dollar budget, but maybe we can get a deal and maybe not. Talk to us about this property that's on the market right now. Yeah, simply just a beautiful home.

And location, location, location, right, guys. So it's sandwiched right between like South Dayton and Northern Cincinnati. So it's going to get a ton of attention whenever it hits the market again. My buyer was lucky enough to scoop it up not too long ago. But it's a 60 by 18 saltwater pool. So just something really exceptional outside. And people in Dayton, we love to host and entertain outside during those six months a year that the weather allows. But this house is a great example of that, just beautiful inside and now.

Kelly, I think we should open the Dayton Bureau. This is really a perfect example. Look at the scale of that. That's on what? More than an acre of property or what? Yeah, typically people. So whenever I travel, I love to talk to people about like the same thing you guys are asking me about, right? Like how far does my money go?

And in Dayton, Ohio, if you're getting a million dollar home or say $1.2 million, you're probably getting a beautiful home site. Some people say a lot, but I like to say a beautiful home site. probably an acre with some trees, and hopefully low property taxes in a great school district. So, I mean, that's why people are flocking to Dayton and choosing to live here instead of some of our sister cities like Cincinnati or even Columbus. Chip, my other favorite question to other than seeing the house is I like to know what's going on with your buyers

in these 7.5% mortgage rates. When we talked to Poughkeepsie, I think he said 51% of buyers were financed. So in other words, a lot of this was still cash in the market and so forth. How are people in Dayton affording 7.5% mortgage rates? Yeah, good question. It's a great question. I really enjoyed the segment yesterday with the Kipsi. And our market's a little bit different. We don't have quite as many cash buyers, definitely, so our folks are financing. But, you know, they're just working their way through it. They're using points to buy down the rate. So maybe buyers are asking sellers to help with closing

cost so that they can do that, whereas we didn't see that a year or two ago. But yeah, bring a little bit more cash to the table, getting a gift from mom and dad or grandma and grandpa so they can lower the amount that they have to borrow. So the house that we just saw there, it sold for what? 1.2? Did it sell above ask? Yes, sir, just barely, just slightly above ask. So pretty much above ask.

And how big is that pool again? That's a big pool. 60 by 18. We'd love to have you down. Dayton has some amazing breweries and restaurants these days, and that's why people are flooding the market. But we'd love to have you to town any time to check it out. going to spoil the sale before it closes.

Yeah, yeah, I may come in there, swoop it up. Chip, your high school buddy, Courtney Reagan says hi. Oh, that's so nice. I wonder, because she's a superstar on the channel. I'm like, man, if I can just be 10% as good as her, then hopefully I won't bomb the segment. So also, I need to thank you guys for finally putting my communications degree in minor in broadcast journalism to use 20 years too late.

But hey, there you go. Yeah, yeah. Well, you're in a good spot. Let me just say, yeah. You made a good choice, I think. You did well on this segment. We give you an A, Chip James, Keller Williams, community partners, and we'll say hi to Courtney for you.

Thank you so much to you soon. We're going to see her in a couple of minutes, actually. Oh, is that true? Our powerhouse road trip continues all week long. Guess where tomorrow? We are going. Ready for this? Dallas, Texas.

Yes, we are. I just want to say two things. My arms are not as feeble as they look there. And I don't wear red tank tops. And while I do have a large head, that is just, disturbing. I appreciate that I get to drive, though, because that I enjoy. You get to drive. You get to drive. I'm the backseat driver there, don't turn here. Denver, not in Denver. I'm sorry. Dallas.

No, never use ways, by the way. Dallas is one of the top 10 Zillow metro areas in the country. It would be really interesting to compare that metro area with what we've already described here the last couple of days. Don't miss it 2 p.m. tomorrow here on Power Lunch. All right, still ahead. The pinch that stole Christmas. We'll explain why it could be a whole home holiday season for folks looking for seasonal work this year. As we head to break, CNBC celebrating Hispanic heritage, sharing the stories of influential business leaders. Here's Enrique Mayor Morah, CFO of Carmen. Immigrants, including my father, are pioneers. They go into the Great Unknown.

He wasn't fully sure what to expect when he immigrated. But he had hopes, he had aspirations, he had dreams. And that's a lot of risk. When you think about it, it's a risk and reward kind of mentality. And you need to be really clear what your long-term vision is when you take such a risk. And I know my father did. Shrink has been the buzzword of the year for retailers, theft getting the blame for a lot of weak numbers there.

But a new report out this morning indicates that maybe the concerns over shrink are overstated. Courtney Reagan joins us now with the details. Hi, Cort. Yeah, Tyler, this is really interesting. So while retail theft has gotten a lot of attention lately, the newest, most widely cited data shows theft actually didn't increase over historical norms last year. So the National Retail Federation surveys retailers, annually about their shrink. Remember, that's all types of inventory loss. And while retailers

reported total shrink grew to $112 billion in 2022 from around $94 billion the year prior, the percent of shrink from theft was about the same. External and internal theft makes up 65 percent of total shrink, the same as last year. In fact, external theft, which includes organized retail crime, decreased slightly to 36. 0.15% from 37%. Internal theft increased slightly from last year. But control failures and processes, things that could be in control by the retailers, those actually grew by 2% as a source of shrink in 2022. I do want to note that the NRF says that 78% of retailers that responded to this survey don't include e-commerce goods in their shrink calculation, and 57% don't include supply chain losses.

So the library group said shrink itself is likely, quote, heavily underreported. And while theft may not be increasing as a percent of total, the violence associated with it is. More than two-thirds say there's more violence than last year. And that's on top of that last year when more than 80 percent of the retailers that responded reported an increase in violence. So to deal with store violence, 45 percent of retailers have reduced store hours. 30 percent have changed out the products available. and 28% say they've actually closed specific store locations. I have to think added to that would be the cost of additional security

or maybe paying off-duty police officers to be in the parking lot during selling hours. Yes, absolutely. Yeah. More of that is detailed within the report. Different technology, of course, that goes into trying to combat that as well as personnel training for their employees and all of that too. Talk to us about Dayton, court. I know. Dayton is a great place to live. I got to tell you, it was a great place to grow up. It's a nice place to raise a family. Springboro is the town right next to one I grew up in Centerville. Go Elks. We beat Springboro at High School Football on Friday, just saying. But it's a lovely place to live. And I like seeing that people want to live there, especially with some remote work options. And there's other good work options there as well. How far is it from Cincinnati? How far is it from Cincinnati? It's about 45 minute drive from Cincinnati. So it's not far from Cincinnati, which is a fun town as well. There's an airport in Dayton. There's an airport in Cincinnati. airport's about an hour and 15 minutes away. It's about, I want to say, 95 miles-ish from Indianapolis as well. All right. From the Dayton Chamber of Commerce, Courtney Rayton reporting. I know. I'll be the Bureau Chief if you want to open one there. All right. Yeah. We were talking

about us. I know. All right. Thanks, Cort. Thank you. Still to come, bullish on betting. Draft Kings hire on an upgrade to overweight at JP Morgan. They say it has even more room to run despite the share price more than doubling already this year. We'll trade it in a fresh three-stock lunch momentarily. And a big interview tomorrow on Power Lunch, Byron Allen. The man reportedly offering Disney $10 billion for ABC. He's built quite a media empire. We'll talk more about the state of the media landscape tomorrow 215.

Power Lunch. We'll be right back. Welcome back and it's time now for today's three-stock lunch. Let's take a look at some of the movers, such as Amazon. As we mentioned, the FTC suing it, alleging it's a monopoly. Shares are down a little more than 3%, about 4% now actually. as the market has weakened, also down 8% for the month. With our trades today, we welcome back Victoria Green, G-squared Private Wealth, CIO,

and a CNBC contributor. Victoria, good to see you, and are you a buyer of Amazon here? I am. This was widely expected, and the stock was trading down before the news broke on the lawsuit, but this is something the FTC has been after them. They've actually, I think, got like four pending lawsuits out there on various aspects of their business, something to watch with litigation risk, but highly like that they can get something settled. I'm definitely a dip buyer on Amazon. I more love their partnership with the AI, getting more into that, looking at developing their own chips.

I see their most broadly diversified company, has a little bit more of an AI play now. So I think that news Monday outweighs the bad news today, and it's a buy. And up 52% for the year so far. Next up is Draft Kings, 3% higher today. J.P. Morgan upgrading that company to overweight, saying the recent underperformance creates an attractive entry point for investors. What should take on Draft Kings? and the points. I am super bullish on them. I'm super bullish on sports betting. I actually feel kind of back because I'm in Las Vegas for a conference right now, staying at an MDM property. But I want to

talk about how great I love that Ginkt in this marketplace because I see this marketplace and continuing to expand. And it's not just sports betting. The eye gaming market looks to be huge. And so they're growing, they're taking market share from that MGM. They've had a few competitors that have come off the market, you know, Barstil, ESPN, they're having to re-figure their apps a little bit. So I see their moat widening. I really like this. I know it's expensive, but it's a huge growth marketplace. So you've got to kind of be prepared for volatility with the stock, but goes up quickly, can sometimes have sharp drops.

But I think over the next two to five years, the growth in gaming and online betting and sports betting in the United States is huge. So they're a buy with me. All right. So then that brings us to Snap, whose shares are down more than 3% today. As HSBC initiated coverage with a reduced rating on the stock, they're talking about growing pressure in the core ad business. So you also have a sell?

and SNAP, Victoria? Yeah, no, I'm sorry. It snaps the no from me. They just can't make money. If you look six quarters ago, they made 1.06 billion in revenues, and that's what they did last quarter. They literally have been stuck in neutral

while social media as a marketplace has been growing. They can't seem to grow it. They're still burning CAF flow. They're operating margins going backwards. So for me, even though they have this new partnership announced with Microsoft for this chat bot, I just don't see the stock as a buy. I think it's more likely to retest the $7.76

to $7.00 range that it is. likely to go to 10. Wow. All right, Victoria, thank you very much. We appreciate your time today. Yeah, you got it. All right, so many stories to get to. So little time left. We will power through as many as we can in closing time when we come right back. Welcome back to power lunch, everybody. Federal Communications Commission Chair Jessica Rosenworsal planning to reinstate net neutrality rules that were rescinded under President Trump. The move came after Democrats took majority control of the five-member commission on Monday. It had been operating with a two-two partisan deadlock because the Senate had refused to confirm President Biden's nominee Gigi Sone.

The FCC reversed the Obama-era rule in 2018, which required Internet service providers to treat all web traffic as equal. Prepare for more headaches. I think in covering the twists and turns of net neutrality again, if that's the case. And some other stories you also need to know about today. How about data showing pandemic-era savings are tapped out for most Americans, 80% of them. According to the Fed, Americans, other than the wealthiest 20%, officially saw total bank deposits and liquid assets dip below March 2020 levels. Tyler, as of June. And June was before gasoline prices started to peak.

That explains why consumer confidence is under pressure today. I guess people were just using their savings, spending them down, and now they are exhausted in terms of savings. In many ways. Yeah, exactly in many ways. and we know credit is at an all-time high on credit cards. We've covered the resurgence of IPOs, but the ETF market also hot. 18 new ETFs launched this week, the busiest week of the year so far, 57 funds launching in September alone.

And according to Morningstar, investors are becoming more accepting of actively managed ETFs. I think in the group, several are coming from Capital Group, dimensional fund advisors, which had been wary of ETFs until very recently. So at full embrace now from those companies in the ETF area. Better late than never. Your office ID has a new role in your work life, which is allowing your boss to track your every move, including how often you show up in person

and how long you actually stay in the building. All of this becoming part of the work from home fight, Tyler. All right, and it's the end of the road for Netflix's DVD subscription business with the streaming giant set to shutter its mail order division on Friday. It used to be something like the fifth largest customer of the U.S. Postal Service. That's right. It had multiple distribution centers. It disrupted the DVD space. Put Blockbuster out of business, not so much anymore. And then disrupted itself. With the DVDs. Yeah, it did disrupt itself. Very successfully. Speaking of disruption,

something like that. Taylor Swift becoming the most talked about person in the NFL this weekend. Her endorsement may be helping Travis Kelsey Jersey sales. Phenetic says they're up 400 percent. Her popularity beyond Kansas City. Her era's tour, which is set for October 13th will be a global event with showings planned in more than 100 countries. And I, oh yes, I'm never on the pulse of anything. I am taking the boys. You're taking the boys to see the film? They are obsessed with Taylor Swift.

They're five and almost four. My son told me last night that Taylor and Kelsey bought out a restaurant so they could go have dinner. At first I go, well, that's kind of bad. But in truth, I realized you couldn't be Taylor Swift and go to a public place. You can't do anything normal. You could do it. I mean, it's the burden. Thanks for watching Power Lines.

Closing bell starts right now.