Power Lunch - The AI sell-off resumes 11/6/25

Episode Date: November 6, 2025

AI and speculative stocks slide again. The FAA is cutting flights by 10% at 40 major airports due to the government shutdown.  And President Trump announces deals with Eli Lilly and Novo Nordisk to cut the cost of weight loss drugs.    Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Just call me Sullivan, Brian Sullivan, Sully, maybe Pete, who knows. All right. Stocks are sinking as the AI trader versus course once again. Welcome to Power Lunch, everybody. Kelly is out. I am Brian Sullivan. We are lower across the board, big tech slightly less big. The NASDAQ falling nearly 2%.

This all comes. The FAA announces major flight reductions and the fate of Trump's tariffs hang in the balance. Oh, speaking of the White House, some good news. In the fight against obesity, the Trump administration, reaching key deals to cut prices for weight loss drugs, good for national health and our waste lines, but what about the bottom lines of the drug makers? Plus, we'll do a deeper dive into one of the most critical resources shaping the global economy right now and for years to come.

That is rare earth minerals. Critical metal CEO and executive chair, Tony Sage will join us live for an exclusive interview. We have got a big hour, lots of do, but let's begin with stocks and your money. Because you can see right there, many of the mega-cap tech stocks, they're down right now. AMD, Palantir, Qualcomm, Nvidia, they're all lower. Many Internet stocks also down. DoorDash, Mercado Libre, Salesforce, all lower. DoorDash, down 16%.

And while AI and stock valuations tend to get most of the attention, as they should, don't also lose sight of this critical fact. There is a chance the Supreme Court rules that Trump's tariffs are illegal. Now, that could shape the bond market because a key source of governor revenue is the tariff money. And earlier today, the president put it rather bluntly. Terris is so important. The decision in the Supreme Court would be devastating to our country if we got a negative. Devastated.

All right, so let's talk more about that and a lot more and what the potential fallout might be for rates and the state of the market and economy. Binkum Chata is chief global strategist at Deutsche Bank and Peter. Bookbar chief investment officer at one point VFG wealth partners. Peter and Biki, good to see you both on set. First off, very quickly, Bickey, have you and your team done anything on the tariffs and what may or may not happen to the stock market if the Supreme Court does rule their illegal? I think it would be positive, basically, for equities in the short term or very short term, I should say, and I would say we're sort of already in that phase.

you know, there's going to be a lot of whip-sawing because, I mean, if you think about, you know, one part of the companies that are impacted massively by the tariffs, that's the consumer companies. Now, the consumer companies haven't actually recovered from the pandemic yet and the issues that it created. So this is one additional place. So all I'm saying is market was short and underweight. Market got even more short and underweight, basically, because that's where the tariffs hit. And so, you know, when you have the potential of them going away, it's going to call some whip-soaring. So we've had some pretty... Aren't you worried that bond yields will spike?

Because this is going to be a critical source of revenue for the government that would then be cut off? So I think that bond yields should be closer to 4.5% right now, the 10-year at least anyway. So I think they're kind of on the low side. And I would say in terms of the tariffs, you know, So, I mean, what we're concerned about is the deficit and the funding. But if you think about the headline tariff number that is raised, I mean, to the extent that U.S. companies are paying that, I mean, that's 21 percentage points of that is offset by, you know, I mean, it's a cost or a tax that's already paid. So, you know, it's sort of subtracts from the corporate tax that you have to pay. So I think that the tariff numbers, you know, or, I mean, the contribution to the budget is overstated by just looking at the tariff, Robyn.

Okay. I just wonder, Peter and I worry, is it an underappreciated risk and maybe Binky's right? I don't know what's going to happen. And that's the point. We've been talking about this for the better part of a year. And maybe the Supreme Court just comes out in a couple weeks and says, you know what, it's illegal, bye. And all of a sudden, everything changes. Well, if a tariff is a tax increase, then the lack of a tariff is going to be.

be a tax cut. So from that perspective, it's going to be a positive. But Trump has plenty of sections that he can utilize to replace a bunch of those tariffs. And they call it the 300 billion of revenue. Well, relative to the $7 trillion that the government spends, it wasn't going to move the needle that much. And because of all the other sections and all the other tariffs that will probably stay on, the government will still take in money. The offset of that is if the tariffs lead to slower corporate profits, that is less corporate taxes that are paid. If it leads to less hiring, that means less income taxes paid. So we can't just look at, okay, we have tariffs, we have revenue coming into the government, and that in isolation. There are plenty of offsets here.

Yeah, and the president will have a backup plan, and some of himself and some of his proxies have said, we've got other ideas. I don't know if the tariffs are good or bad. My point is that it's a huge variable that we've been talking about for 10 or 11 months that would soon just be wiped out, all because of the Supreme Court. And by the way, in arguments, apparently they expressed a lot of skepticism, including Chief Justice Roberts, not exactly on board with the tariff ideas. So it seems like they will be ruled illegal, but neither of you, Peter, you don't sound that worried about it. I was not a fan of tariffs, particularly the negative impact on small, medium-sized businesses that have much less ability to handle it. So taking those tariffs off

for these businesses, I think would be a positive. Okay. Binky, we don't have official government data, we know that. We do have the Challenger Gray and Christmas job numbers today. They showed the biggest drop. Most layoffs in October in 20 years. It's one month. It's one data point. It's one company's own data. And ADP, by the way, the other day, was actually a little stronger. Sure. Than expected. How are you in your team reading the American economy and job market right now? I think the job market's been slowing for quite a while. We obviously have all the issues of the actual measurement and the revision, so we don't really know what the numbers were.

Lots of reasons to believe that, you know, we slowed a while ago. If anything, you know, some high-frequency indicators, ADP included, are actually saying that we are past the worst and things are actually getting closer to, you know, slightly positive now that we've actually been negative. So, I mean, I agree that we've sort of come down here, but the latest high-frequency indicators, And it's, you know, not a whole lot yet. And you're willing to put your money where your research is. You like some of the consumer staple stocks.

Actually, we like the cyclical parts of the consumer. Like what? Industrials. So, you know, if you look at consumer discretionary, you know, you've got to take the two, you've got to take Tesla and Amazon out. And I would say most of the rest there, it's been hurting. It got whacked again. And as I said earlier, you know, it's the ongoing issue for the consumer companies in the U.S. since really the pandemic, where I would argue it's not really a consumer issue in our reading.

It's really a consumer company issue. Essentially raised prices way too much during the pandemic inflation. And they haven't been that successful, basically, at getting things back down. Well, you know, Peter, those Challenger Green Christmas job numbers, again, one company, one month, I get it. But they were getting a lot of attention on the street. The notes I was reading this morning, they were all referencing them, and it feels like it's another sign in a weakening economy. I have never seen an economy that's been more split in two than we have now

with strength and upper income spend and data center buildout and weakness everywhere else. And that weakness is not just slow growth. Manufacturing is in a recession, housing is in a recession, global trade is muted. Is it fair to say they're in a recession? Part of the economy is in a recession, lower to middle income consumers are in their own recession. So this split economy is now beginning to, I believe, infect the labor market.

And we're grasping onto Challenger because we have no payroll number that we're going to see tomorrow. But if you look at the ADP number, it's been slowing since April, particularly in small and medium-sized businesses. And now we obviously see every week seemingly a big company. But here's the question. Vicki jump in on this, too. Here's a question. Is a weakening job market, a reflection of a weakening economy, or kind of, kind of to your point, I think, Binky, a reflection of overhiring during COVID, sort of a fake

stimulative economy, because I will argue that we way underestimated the amount of money that COVID policies put into the economic system, and you will never be able to convince me otherwise. I think a lot of that overhiring really showed up in technology, because beginning in 2021, when the world was opening up and companies left and right in the space, and the SPAC raise and the amount of money that was raised in 21, 22, a lot of these tech companies were all competing for people. And most of the job cuts, and even Challenger mentioned that, has come over the last couple of years from technology as they reverse that overhiring

that you talk about. Yeah. I would say, you know, if you look at or think about the two-track economy through the lens of the equity market, I would say basically the last couple of years, the only game in town has really been mega-cap growth in tech in terms of earnings. I would say, you know, Q3 is actually very constructive that we are starting basically now to start to see a broadening and a change. So if I look at S&P 500 earnings growth, earnings growth looks to have basically, or is on track, basically, since we don't have all the results yet, to accelerate by, you know, 4.4.3 percentage points. Is that all big tech, though, Binky? Actually, what I was going to say is only a third is coming from big tech. Or another way I'm putting it is that two-thirds of that acceleration is actually coming from elsewhere.

So you take S&P 500 earnings growth, take out mega-cap growth in tech. In the second quarter, the rest of the S&P 500 had their earnings grow by one and a half percent. In the third quarter, we are tracking for 6 percent growth. That's pretty healthy. You can do simpler ones. You know, last quarter, we had two sectors. last quarter, meaning second quarter, we had two sectors with positive earnings growth. This sector we have, this quarter we have six sectors with positive earnings growth.

That's a positive. I mean, I can go on with signs of broadening. I mean, if you take the earnings that come from companies that have double-digit earnings growth, we suddenly have two-thirds of companies contributing basically to double-digit earnings growth. Look at the median company in the S&P 500. That's 10.6% in the third quarter after being stuck at around 7% for two years. So there's plenty of size. So I don't disagree with, you know, the two-track economy.

I don't disagree with the slowing. But the question is, you know, are we going to continue to slow or are we already showing signs of turnaround? I would say Q3 is arguing the latter. Well, good. We like it. That's an optimistic point of view that maybe that you were at the bottom of the you and we're coming back. up. We'll have to wait, I guess, to get more either private sector or hopefully

public sector data at some point soon. Peter, thank you both very much. Appreciate that. Thank you. All right. Meantime, as we mentioned, the bond market as well. It is on the move as well, but we are still above 4% on that 10 year. Very pesky for homebuyers.

Rick Centelley's in Chicago. He is following the bond market and the news. Rick. Well, I'll tell you what, you just nailed all the important variables. Let's start out with Challenger Gray and Christmas. Consider, it's layoff announcements, first of all. Will they actually happen?

Maybe, but they are the announcements. And if you wanted to make today's number look as bad as possible, here's how you'd say it. The worst October in 22 years. If you wanted to reflect more accurate way to view today's number, well, 153,000 announced layoffs, February was 275,000, January was 175,000. January was 172,000. So the first two months of the year were significantly higher. If you look at the response in the marketplace, obviously twos and tens both started to drift significantly lower, and that really was the driving force. And you mentioned it, Sully, a lot of people talking about it, talking about it in terms of 22 years, though. And if you look

since the Fed rate cut, what that has done has brought us back to what had been the top of the range, kind of 405 to 410. And you also mentioned, 4% are we going to get back under it here's in october 1st of 10 year you know how many closes so far in 2025 we've had all in october a total of six so the real key is are we going to go back and revisit under 4% or is this going to hold and we move back up towards 4 and a quarter that's what the game is that's what investors are trying to decipher brian back to you rick said telly rick Appreciate it. Thank you and thank you for the compliment. All right. After the break, deal or no deal? Not the game show. Tesla shareholders gearing up to vote on Elon Musk's supersized pay package.

Plus, the record shutdown hitting now the skies, how the looming flight cuts could impact your travel plans. More with Philibault. Next. A critical Tesla shareholder meeting kicks off in less than two hours. But what's getting all the attention is the vote on CO-Ellon. on Musk's nearly $1 trillion potential pay package. Let's bring in Phil Abo to talk about that air travel as well. But let's start with Tesla and what we might expect there. Phil. Well, we should get the results.

I mean, look, the votes already happened. So for the most part, there may be a few people who are or a few firms that are voting today, Brian. But for the most part, most of the votes have been cast. And what we're waiting for is the final result. You mentioned the one trillion dollar or potentially one trillion. dollar package. Keep in mind, it's actually $8.48 billion, not that that's dramatically less, but it's not $1 trillion. And that's only if Elon Musk were to hit all of the pay metrics that are laid out over the next decade. So I know there will be some people who say, well, he's getting a

trillion dollars. No, it's not right off the bat. He would have to do certain things like deliver 20 million Tesla vehicles, one million robotaxies, I think 10 million full self-driving subscriptions, one million humanoid robots. And then there are also other metrics tied into things like the valuation of the company, the EBIT of return, etc. So this is the vote that's taking place or has taken place. And we'll see there's more than a few of the most bullish advisory firms, investors in Tesla who have said, give the man this package. Yes, it's a lot of money. But he has delivered in the past.

And if we want him to deliver in the future, we should pay him. All right, Phil, I want to switch gears down. I want to talk about the potential chaos at the nation's airport. As of tomorrow morning, Friday, the FAA plans to cut flights by about 10% at 40 major airports due to the government shutdown. Now, Phil, I guess 10% to a lot of people doesn't sound like a lot, but it's a pretty big number. It is a big number. Look, I just heard from United Airlines that they're going to be cutting basically 4% of their flights starting tomorrow, Saturday, and then Sunday. and then like other airlines, they'll be ramping up over time, provided that we don't get a resolution to the government shutdown. The thing to keep in mind, Brian, is that Secretary Duffy from the Transportation Department has made it clear. They need to reduce the volume of flights that the air traffic controllers are handling, not just in Newark or down in Jacksonville or in other areas, but across the country.

And how do you do that? You winnow out the number of flights going into the major airports. and primarily what we're going to see is reduced frequency from smaller airports, a lot of regional jets. International flights are not going to be impacted. A flight between or routes like L.A. to New York. The airlines are going to keep those. They're not going to reduce those types of flights. Where they will make a reduction, Brian, is here's one from an area you like to visit, Michigan. Do you think there are going to be as many flights between Grand Rapids and Detroit?

Now, we don't know for sure, but that's the type of flight that you would see instead of three flights a day. maybe there's two, maybe there's one. They won't eliminate service. What they will do is pare it back. So it's Indianapolis to Memphis, Salt Lake City to Las Vegas. More regional airlines and regional flights, it sounds like Phil are the ones that are going to be cut. To your point, the Newark to LAX, the San Francisco to JFK, those are likely still fine. I mean, those are the moneymakers for the airlines. They are the money makers, the ones between hubs and between major cities. Now, if you are going Memphis to Washington, D.C., if the idea is to trim flights going into, let's say, Reagan National, you will see lower frequency. And I'm just throwing out some

matching pairs here. So if you were in a secondary city, which is what they refer to, a city like Memphis, if you were in a city like that, and they're listed on the list here, let's say Omaha. There's one that where you would see the frequency come down a bit between, let's say, Omaha and Chicago. The idea here is you want the air traffic controllers who are working the Chicago airports to not have as many flights, as many planes coming in. That's why you reduce the volume. And I want to be clear, so the United Airlines News, I think you hit it right at the top, 4% reduction in flights this weekend. In total flights. Yeah, and you fly all the time. I'm actually planning to fly on Sunday out of Newark. I hope I am anyway. I'll fly tonight, Brian. I'm going to be,

I'm going to be with American CEO tomorrow morning in their operations center. Well, let us. And we'll talk about the moves that Americans making. Well, let us know how that flight goes here. So Robert Isson has been very clear. Yeah, if what they're trying to do here, and I've talked with people at all the airlines. And I'm sure what we'll hear from Robert Isam tomorrow morning is we want to make this. The airlines want to make this as least disruptive as possible.

But so you fly out the time. They're giving us the wrap, but I have to ask you this, because you see it. I can tell you this much of San Francisco, early Saturday. morning, it was fine, but it was also five o'clock in the morning. There's also the TSA aspect, the security line. It's not just the air traffic controllers. It's getting into the airport on time. I know others have said John Arnold of a billionaire, natural gas trader on the meta board, posted a picture of Houston, said it was a couple hour wait. I don't, you know, what day that might have been. And you don't know when it pops up, Brian. There's another angle of this, right? There's no way of

through security. Correct. Correct. You have to keep your fingers crossed to a certain extent. You know, I'll be at O'Hare later today. Am I positive that I'll be able to get through security as quickly as usual? No, I don't expect that. That's just the way it is right now. You don't know where the delay is going to hit. Yes, and get to the airport early and be super nice, right? Phil, we can all agree on this. Be super kind to TSA. Say thank you for being here. Appreciate your work in your service because they're getting a lot of flak and they're the ones that are working without pay everybody just be super nice philobo thank you all right you bet coming up we'll talk more about this latest gold rush for the rare earth shares of critical metals company a 550% in a couple of

months the CEO tony sage will join us exclusively to talk more about their big projects next All right, time for another big Power Lunch exclusive interview, because let's take a dive into Critical Metals Corporation. They've got two projects for Rare Earth and Lithium in the Works. One is a mine in Greenland. The project is called Tanbreeze. They've also got a lithium mine in Austria called Wolfsburg. Joining us now is Tony Sage. She's CEO and executive chair of Critical Metals.

Tony, welcome to Power Lunch. I'm glad you're here. Let's start with Greenland. And when do you expect that operations actually digging critical minerals out of the ground in Greenland? When will that start? We hope to start construction in the third quarter next year. We've done a hell of a lot of work since we took over the project about 12 months ago.

Before that, it was owned by a single individual. He spent about $50 million of his own money on it. I've never met anyone that's done that with. without public funds. So he got us off onto a great start. The license has already been issued. And only a few days ago, we got our environmental approval. So we hope to break ground the third quarter next year.

And it's a simple operation. The logistics is easy in Greenland. A lot of people don't think so, because you can see on your diagram there, it's full of ice. But where we are in southern Greenland, it's quite temperate, only minus five Celsius in winter, at about 15. in summer. So we're in a very good spot right next to the water. The all body is 250

meters away from the water. And usually in mining around the world, the biggest problem is logistics and distance to the port. Ours is very, very close. We don't even need to build a port. We just need a floating dock because 400,000 years ago, the ice, when it retracted, it dug out these huge fjords and it's 80 meters deep, only two meters from the shoreline. So we're in a very, very good position and hope to supply the world within two years. I was going to say, when would then sail, assuming that timeline to begin, because right now there's nothing that's happening up there, correct? Right now you own the property, you've got some of the environmental approvals, but there's no actual digging of dirt at the moment, correct, Tony? Correct. Okay, so you got your

timeline there, what would be a realistic timeline to begin selling some of these rare earth minerals or getting them recycled, refined for sale? Yeah, because it all body is homogenous, it's very easy. As I said, we don't need to build a road. You don't need to build a railway line. Don't need to build a port. We're going to have a floating dock. So I'd say there'd be no more than 12 months from construction to selling product. The bears might argue, Why hasn't something already been done there? You referenced the previous owner. He put $15 million of his own money.

You guys have bought that from him. Why now? Why wasn't anything done prior to when you and your team bought it and took it over? I think mainly because of that. He was a single individual, 78 years old. He is an academic geologist, chemist, and he was interested in just creating this massive all-body, which it is. It's 4.7 billion tons. If we drilled the whole lot, it probably lasts a thousand

years. So it's a massive, massive deposit. I suppose because of him being by himself, number one, number two, it's really only in the last two years that rare us has become a very, very important commodity for the world. Yeah, you've got zirconium, tanglem, neobium. I'm not going to pretend to know exactly all the uses. I think I got a C-minus in high school chemistry. Tony, don't hold that against me. But tell us about the, it's a very, it is a very ore-rich deposit. So tell us about what minerals are in there and what uses and sales they would have potential for. Well, for example, gallium in the defense industry, hathnium. Hathnium, there's going to be probably 70 reactors, nuclear reactors built around the world in the next five years. They need

hafmium to keep the water cool. It's the only one that can withstand the heat. Then you've got dysporium. You can use that with smartphones all the way through to electric cars. Look, it's so important this mineral. I like it to, in the 19th century, there was the gold boom. In the 20th century, it was oil. The first half of the 21st century is tech. But to run the that tech, all those companies, Navidia, Tesla, SpaceX needs these rare earths. And unfortunately, the West, to their own fault, has let China control over 90% of the world's rare earths in the processing and the mining and also 80% of the lithium. So the whole of the green transition is really going to be decided by China.

And when you have that much power, you have pricing power as well. And that's what's been happening over the last few years. And very good on the Trump administration that they've managed to get China to release some of these rarerous elements again. But it's a short-term fix. And we're, Tony, we're CNBC. We want people to make money in the stock market. Is there any part of you or your team that worry? You got a company that doesn't have a lot of employees.

Capital IQ has four employees listed for you guys. You can tell us how many you have. And a billion dollar market cap. I mean, there's a lot of optimism built into your company, right? I mean, is that, do you think that investors have gotten out in front of their skis a little bit? Or do you feel this optimism, a billion-dollar market value is fully warranted? Oh, absolutely. I mean, we've only got four employees, but we've got a truckload of consultants.

I mean, our consulting firm, who's doing all the engineering work for us, for example, has got 5,000 employees. So we pay consultants in our game. once we get into production, that's a different story. We'll end up with probably four or five hundred staff. But right now, we're lean and mean. But markets in a boom, overshoot. We all know that. Nothing goes vertical and stays there.

But I feel in the last week, it's overcorrected. And I believe that most of the rareo stocks have been overcorrected, but the world needs it. The Chinese solution. for the next 12 months is only a band-aid. I mean, you just look at Germany back when Mr. Trump said, don't build North Stream 2. Russia's not your friend.

Three years later, four years later, Germany's in a mess with its energy. So you don't want China or any country, forget if it's China, could control over 90% of such an essential mineral. Yes, and we have reported extensively on that. I'll make you deal, Tony. How about this? I've been to the MP Materials Mine in California. California twice. I'll go to Round Top in Texas for USA Rare Earth if they invite me or if I can get on the road.

Would you have us, have me? I will go to Greenland if you would have me there. Definitely. And this is what you're going to see. Hard rock. Most of the rare earth deposits in the world are clays. And you imagine trying to extract from clay material. That's why it's high energy intensive and a lot of water usage. So hard rock to process of the way to go. I'll look for, I don't know what 15 degrees Celsius is. I think it's probably mid-40s Fahrenheit, but I speak Fahrenheit. We'll wait for that, but I look forward to seeing you, meeting you, and going up and seeing your team in Greenland, Tony Sage, critical medicals.

Thank you very much. No problem. Thank you for having me on. Appreciate that. All right. We got a news alert right now, actually, on OpenAI with McKenzie Sigalos in San Francisco. McKenzie. Hey, Brian.

So we just heard from OpenAI CEO, Sam Altman, with a fresh look at the companies financials. He says that they expect their annualized revenue run rate to top $20 billion this year. It was $13 billion before that. And to grow to hundreds of billions by 2030. That's also a revision upward. This came as the OpenAI chief was responding to White House crypto and AIsar, David Sachs about the question of whether the U.S. government should act as a backstop for AI firms like Altman's when it comes to these massive compute contracts that they have been signing. OpenAI personally has committed to spending $1.4 trillion. on compute deals with names like

Nvidia, AMD, Broadcom, Oracle, Amazon, and Microsoft, but Altman clarifying they don't have or want the backing of the government. Brian? Wow, big headlines there, and I believe we got Sarah Eisen's going to be speaking with Sarah Fryer, who's the CFO of OpenAI

tomorrow. It's like every day. Open AI is the news flow that keeps on giving, kind of like Hafneum, which I just learned about in Greenland. Mackenzie Sigalos, thank you. All right, coming up with all the focus on big tech. Our market navigator says, don't overlook this undervalued sector. We're going to check up on health care. Welcome back to power lunch. I'm Dominic Chu. Time for today's market

navigator. So is the mega cap tech rally running out of steam? Our next guest says he's eyeing another part of the market that he thinks could be ripe with opportunity. And it's one that's often seen as more defensive in nature. Joining us now is Todd Sohn. He's a senior ETF and technical strategist over at Stratica securities, Todd, if it is not mega-cap tech and telecom, what is it? Hey, Dom, great, great to speak with you. It's healthcare. Listen, we look at sector ETF flows as a barometer on how investors are feeling about all the different sectors that are out there. And healthcare has seen the most outflows over the last year and a half. It is icy cold there. We think there's a really good contrarian opportunity for that space, completely beaten down,

but you're starting to see internal improvement from pharma, from biotech, and even equipment. So if you're looking to water down your tech exposure, go to health care. How much are you seeing some more of that renewed interest from the client conversations that you are having right now? Are more of those clients asking about that health care trade? There are. Every meeting we do, there is inevitably a health care conversation. But what's interesting is it does not match the ETF data just yet.

So there's a lot of interest and want to get into health care. But I think a lot of investors might be a little bit too hesitant to pull the trigger on doing that, right? There's been a modest move in there. So we don't see a wholesale move. We think it's early. We think it's still very much a contrarian play. And keep in mind, health care's relative performance over the last few years is in the

bottom percentile relative to the S&P over history. We think this is a great place. Again, it's got value. It's got growth in order to find where there is opportunity, especially going into what could be a little bit of a rocky 2026, given where sentiment is today. And of course, we got a lot of health care headlines out of the Trump administration just today as well. Todd Sone over Stratigis.

Thank you very much. We'll see again soon. Brian. I'll send things back over to you. Dom, thank you very much. much, and I'm going to send it right now to Courtney Reagan for a CNBC news update. Hi, Brian. Health Secretary Robert F. Kennedy Jr. says new dietary guidelines for the U.S. are coming next month. He says they'll be aimed at reducing obesity and changing the country's

food culture. According to Kennedy, the guidelines will address the kind of food served to military members and children in schools. House Democrats sent a request to Andrew Motte-Batton-Winzer, formerly Prince Andrew, to provide a transcribed interview about Jeffrey Epstein. The request comes as part of the House Oversights Committee probe into the convicted sex offender. Andrew, who one of Epstein's victims accused of assault, was recently stripped of his royal title over his links to Epstein. And a senior administration official tells NBC News, Kazakhstan's president is expected to announce today at the White House that his country will join the Abraham Accords.

The country will become the latest Muslim majority country to normalize relations with Israel. The move is largely symbolic, as the country already had a full diplomatic relations and economic tie with Jerusalem. Brian, back over to you. All right, Courtney Reagan, thank you very much. All right, coming up those comments by RFK Jr., following the announcement of a deal to try to lower weight loss drug prices at the White House,

we'll talk about what it means for producers and users. Next. All right, today is a big day for what you'll pay for so-called weight-loss drugs. President Trump announcing deals with Eli Lilly and Novo Nordus to slash prices and expand. coverage for their popular obesity treatments like Zepbound and Wegovy. This is a big deal because Americans often pay more than double for prescription medicine

than in other developed nations. So good news for some of you, but what does it mean for Lily and Novo Nortis? That's Jared Holsey, is health care strategist at Missouho. Jared, great news for millions of people that have been struggling with their weight for years, but what does it mean for these companies' bottom lines? Hey, Brian, thanks for having me. I think when I take a step back, it's probably more positive than negative. I think investors have been thinking and sort of modeling negative price for this category for a while. So to draw a line in the sand, I think, is a good thing. I know Novo mentioned

that it's going to have an impact next year to a negative effect on their revenue growth. But I think big picture, it's probably positive. Yeah, I mean, you don't want these to be sort of exclusive designer drugs, a lot of people that have money and have the cash, they can buy them, they can use them, I would imagine that, or you tell me, or tell our viewers, what is the balance between a higher price and less usage and a lower price and a lot more usage? Well, I think from the government standpoint, and what makes this really interesting, is they want the broadest access, right? And so if they accomplish that with this deal that was signed today, then maybe they get off the back of Lillianova for a while in terms of

other prices, and they expand volume, and you can still, you know, hit numbers that way. I think that the main thing that investors have been talking about is, is this still a hundred billion dollar market with prices coming down? And I think you can still make the numbers work. Yeah, I think so. And, you know, the obesity issue, as the government itself, a report, has, I mean, it's surged. And in 30 years, the number of people that were obese in America has gone up by multiples. And globally, too. Do we have any idea how big this market potentially is, Jared?

I mean, they're saying that one out of every third American is obese by definition. So right there, you have, you know, hundreds of millions of potential patients just here. And then there's obviously, you know, a multiplier effect internationally, even if you consider lower prices in Europe and Asia. So it's hundreds of millions is the number. Maybe even approaching a billion, obviously not everyone's going to get it. The axis is still not perfect, but it's a massive number. On these new prices, if you take sort of a median price point, let's say, you know, $250, $300 a month, $30 million patients gets you to that $100 billion mark pretty easily. Yeah, big deal of the stock. Well, Novo's down a little bit. Eli Lili is up a little bit. Wait and see

how it plays out, but Jared Holes, we're glad that you're on in the program with us. Thank you very much. Thanks, Brian. All right, coming up, this energy-related name soaring on an earnings beat, and it still could have more fuel to run. Maybe a hint there. It's your mystery chart. We'll find out the name and the news.

Next. For a couple years, we've talked a lot about EVs, and particularly the F-150 lightning electric truck with Phil LeBoe for years, and now we've got some potential breaking news. Bill? Well, yes, the Wall Street Journal reporting that Ford is in discussions about whether or not it ultimately ends production of the F-150 Lightning. Now, they have stopped production on the F-150 Lightning, at least through November 24th. The Journal is reporting that there are discussions at Ford about whether or not to even restart production. And then if you do restart it, how long do you continue manufacturing the truck? Let's be clear here, Brian, whether or not Ford gets rid of the lightning, the way we see the lightning, right now is not the way any electric truck is going to be built in the future. They are redoing their entire portfolio and their platform for electric vehicles. The lightning is not going to be built the same way if they continue building it. And there are some questions about how much of an appetite there is within the pickup truck market for electric, pure electric vehicles. Ram has already

made the decision that it's not going to do a pure electric RAM 1500. Instead, it's going to do an extended range electric vehicle, which you understand how what that means. You're basically running a generator, which then powers the motors within the vehicles. And it gives you extended range, but it's not pure electric. So that's the story that the journal is putting out there. And frankly, one that is not a huge surprise within the auto industry. If Ford were to make this decision, Brian, I don't think anybody would sit there and say, you know, why are they doing this? It has not been the huge seller they expected. No, you've reported on extensively. to your point, we and I have talked about it. We've debated it. We've argued over this.

For a couple of years, $75,000 for 200 miles of range, if you're toe on a small boat, is a tough sell. That's the reality. That's it. Very much so. And especially in the middle of the country, Brian, you go out into a rural area, you talk with somebody who is a, who loves Ford, who loves the F-150, and you ask about the lightning, and they go, oh, no, no, no, no, no, no, no. Why would I do that? That is the response I routinely hear from those who are, loyal Ford customers in rural America. They are not lightning fans. It's just, it is a, it is a bit of a tough sell at that price point with that range to your point. Middle of winter, Michigan, you're pulling a small trailer with a, you know, a couple of side by sides on it,

and you're going 175 miles. And then you got to disconnect the trailer and back in because of where the plug is, it's, it's not ideal. I wish the best for the UAW and the people that build these things, what's going to happen to them? Well, if they have to discontinue production of the lightning, it's not like they're going to stop building the F-150. Look, it's still the best-selling vehicle in the country, and it will be, once again, this year, and there's plenty of demand there. Now, do they come back with a, if they decide to end production of the lightning as it is right now, do they decide to come back with an extended range electric vehicle in the future? And look, hybrid versions of the lightning, or the hybrid version?

versions of the F-150, very strong sellers. Yes. So there's demand for the truck. It's just nobody wants a pure electric pickup truck right now. They don't. I said that three years ago. I owned one. I bought it. I had an electric pickup truck.

SUV. I'm not some hater. People, oh, you hate stuff because you cover oil and gas. No. You just drive one around and you're like, you turn on the heater and you go 200 miles and you stop for an hour. The hybrid, you go 900, 400, 400, Ford F150s are awesome. The hybrid F-150, 900 miles.

on a full tank of highway driving. Philobo, thank you. We got a double fill on power lunch today. All right, his power check time here on set with us to walk through how he has navigating some of this market, New Edge Investment Solutions Fund Manager, Jay Peters. I will not ask you, Jay, to comment on the viability of electric trucks. Do not worry.

But two of your three picks are gas, natural gas, gasoline, and oil-related Apache. Doesn't get a lot of love except for you. Does not. And the whole energy complex hasn't gotten a lot of love this year. It's been a tough place to be for equity investors. But, you know, this is a company that's, you know, an old school operator, been around for 70 years, known for operational efficiency and capital discipline. Two things that we think are really important in this environment.

You know, and then you look at the broader energy complex. I think expectations are low. That's where you're seeing some of the reactions we're seeing out of these companies. And, you know, Apache stands out as a company that's been incredibly operationally efficient, able to raise their production while cutting their costs. And then from a fundamental standpoint, this is a company that's a company that's a trade. at eight times earnings with a 20% free cash flow yield, really diversified production base not only here in the Permian, but also with assets in the North Sea and in North Africa,

which that could be a long-term call option as we were talking about. And ultimately, in our view, which is a high-quality producer. Yep, biggest in, or they were, they may still be in Egypt. I was out there. I saw their rigs actually in the deserts of Egypt. The next one is EOG. Probably the quietest large operator in America. They don't talk, by the way, they're always welcome.

They don't talk, but they just quietly kick off a lot of cash flow. That they do. And again, another high-quality operator, a company with one of the lowest costs of productions in the industry, one of the dominant producers down in the Permian Basin. And part of why we like this business is 30% of the production actually comes from natural gas, Brian. And that's the market that we think the fundamentals

are a little bit more attractive if you think about the demand picture and the export growth and the potential demand from data center power consumption that we're seeing. And, yeah, EOG is another company with great operators. operational efficiency, capital discipline, really minimal debt. So a lot of things to like if you're looking for quality in this segment. Yeah, Apache and EOG. Again, names, we don't talk about a lot because they don't do a lot of media, but they're out there. The next one is completely different, although maybe it's not, because I'm thinking about data centers, demand for processors. It brings you to a Qualcomm. You guys keep buying. You're adding more Qualcomm. It's a pretty sizable part of your suggested portfolio now. Sure. Yeah, I'd say it's about a 3% portfolio wait for us. It's a name. that we continue to be intrigued, I would say, certainly a high-quality business. Qualcomm,

you know, a storied semiconductor company, over 200,000 patents around wireless connectivity, companies of technology is found in nearly half the world's connected devices. And, you know, in our view, this is a business undergoing kind of a multi-year transition. And, you know, we're more encouraged about the growth that they're seeing in these long-term secular growth opportunities of things like automotive and connected devices and Internet of things. And, you know, Qualcomm, you know, it is one of the cheapest semiconductors companies in the market. It's also one of the most profitable. So I think for...

Why? It's an interesting. It's great points. Why do you think that is? Qualcomm, you know, tucked down there in San Diego, they don't get the love from investors with the valuation and the multiple that many other semiconductor companies do. Why do you think that is? They don't.

I mean, a lot of the revenue comes from, or a good portion of the revenue comes from licensing. So that's super high margin business, but it can be lumpy at times. And I think they've, you know, they've maybe missed out. a little bit on the AI infrastructure trade and being a key supplier. But I think it's encouraging to see them, you know, trying to make inroads in that space. It's going to be a competitive market. But, you know, that does have the possibility to lead to maybe evaluation re-rating more in line with peers. So any of the overall, I'm going to get you put you on, we call this, producing from the desk.

Obviously, the market's down a little bit today. Not making too much of it. Markets are bigly this year, okay? But not just ours. Markets in Europe and Asia, everything's been up. We've been down a little, it's been a little wobbly the last few days. Any concerns you and your team have about AI, about valuation? So we still feel pretty good about the AI infrastructure trade and theme.

And I think you have to listen to what the hypers are telling us. And that's that this CAP-X is continuing to increase. It's expected to be up another 30% in 2026, over $500 billion. So we still feel pretty good about that. We do think the... As long as those numbers hold up, right? If they change, tell me that's a different story. That is a different story.

And I think these are still, you know, economically sensitive businesses at the end of the day. You know, they are doing phenomenally well. But I think, you know, the market has come off six straight months of gains. It's probably a little overdue for some different consolidation here. And, you know, we're still constructive on the long-term outlook. All right. We like it. Apache, EOG, Qualcomm, Jay Peters of New Edge.

Really appreciate you coming in. Thank you, Jay. Thank you for having me back. All right. Just a quick programming note, don't we are here tomorrow. We're not done yet. It's Thursday, not Friday. But on Monday, I want to tell you about this.

We're going to be live at the Edison Electric Institute conference in Miami. Basically, it's the biggest utility conference in the United States. We've got an all-star lineup across the day on Power Lunch. We've got the CEOs of Duke Energy, the CEOs of PG&E, and red hot stock, hot eight. That stock super hot. That's Monday. We'll see you tomorrow. We're not done for the week.

Big Market Day. Posing Bell. Starts right now.