Washington as the next stimulus bill hangs in the balance, airlines are taking a hit as that october 1 deadline to avoid massive layoffs is fast approaching. Weve got the details and the very latest on that. Shares of the chinese electric car maker nio, i thought he was a singer they are up 400 this year. Power lunch begins right now got to play some neo now thank you, tyler the market vs thes have their en washington as the stimulus plan is being worked out. Will it pass lets get check with ylan. Reporter the conversations do continue. House Speaker Nancy Pelosi is scheduled to speak tomorrow with the treasury secretary they already spent 50 minutes on the phone this morning talking about the democrats new 2. 2 trillion proposal. The bill does include some white house priorities, including 25 billion in aids to the airlines and extension of ppp for the hardest hit businesses and 182 billion for k through 12 education. There are al some democratic must haves such as 436 billion in state and local aid for one year 60 in enhanced unploim benefits and 1200s in direct checks. There are some Division Within the democratic caucus. Congressman is voicing some concerns about money for the Defense Department thats been tucked into this bill. Hes a progressive on the other hand you have moderate who is are urging pelosi to continue to reach for that bipartisan deal that has been so elusive. Pelosi will be meeting with her rank and file members tomorrow morning to sort of take their temperature on this and see exactly what they are willing to accept back eeover to you. Do you think the debates tonight or the debate tonight is going to play any kind of role in turning kind of the appetite one way or the other about a deal here. Reporter i think what will be important is where the president comes out on this. The last thing we really heard is hes willing to go big in tur terms of the number. How does he message this Going Forward . Is he willing to come out and really make the case for Something Like those direct checks hes been in favor of but that senators have not been in favor of how much of a player is he in this i think that could change it well have to see what happens tonight. Yeah. It will be interesting appreciate it for now. Thanks the markets are looking to turn page on whats been a bad month for stocks could earning season be the catalyst that turns it around. Lets go to bob for more were ending the quarter pretty much as we started it that is Technology Stocks are leading today and energy and banks are badly lagging. Health care, reits are lagging though not as much as some of the energy and the bank stocks here on the quarter, just let me talk to you about whats going on we already had 14 Companies Report for what is essentially the Third Quarter numbers. Its been excellent. 13 of the 14 have beat expectations Companies Report beats on earnings of about 3, 4, 5, 6 . This is way above normal its a good sign that analysts are under estimating reopening economy. They have been raising the Fourth Quarter estimates because the numbers have been so good. Darden, fedex, nike all reported in the last four weeks this is a good sign that other Companies May see better than expected numbers based on what were seeing so far. Stimulus, if were getting more or less stimulus and treatment the is vaccine advancing quickly or not these all determine what go into the earnings picture only 67 companies have provided some kind of guidance. Were not getting any of that. We need more i anticipate we will see some companies coming forth were not going to have the same problem we had last quarter. We will get a little more guidance back to you. Thank you very much will the earnings that bob was talking about give stocks a boost or is there more pain and volatility ahead valerie grant is senior vp and portfolio manager. September has given arguably investors a bit of buying opportunity, wouldnt you say. We think so you dont want to be chasing the rallies. Bha are the dippiest stocks right now, david well, some of the Technology Stocks that had melted up, sold up very significantly. We still are weary about those even though they sold off 20, 30 . A lot of them were at 50 to 70 times earnings we would look at the market overall and look at the underpinnings of individual stocks one group thats lacked a lot this year have been the higher dividend faang, Higher Quality companies. They sole od off with the marke. We think thats the best place to be over the next 6 to 12 months a little bit dull companies but they are paying a 3 to 4 yield and income will be very important over the next year youre not getting that in bonds and in money markets valerie, you see it as a pretty good market for stock picking. That needs to be selective and two stocks that you have on your core holding list are home depot and lowes why . Thats right. Lets start with the sector overall of consumer discretionary. I think its a very productive sector for stock picking theres a wide dispersion within the sector meaning stocks dont necessarily trade as a basket. There is differentiation and an opportunity to pick winners and losers for home depot and lowes they are benefitting from the focus on Home Furnishings and Home Improvement. I think people may have missed the data that was released last week by the National Association of Home Builders it shows sales of existing homes and new homes and refinancings are quite strong what this points to is that people will continue to spend on homes and Home Improvement for the foreseeable future if you look at that in the context of record low interest rates, the affordability of new and existing homes is more attainable how sanguine are you about what it could mean for the markets . I think we need it. Obviously, if the fiscal stimulus goes through, i think lit be a positive catalyst for markets, for equity markets. David you mentioned solid dividend payers including electric, utilities and direct Consumer Staples why them these are really good businesses and they been able to navigate the covid economy very well they are earning a lot of money. Their outlook is very good all of them are selling at 10, 11 times earnings. They totally missed the rally this year. We think the market will have a rotation people will want to buy businesses these are really good businesses and very atrablgtitractive pric. Let me ask you both, yes or no the debate will matter, not matter to the market tomorrow . Valerie. No. Wont matter. David . Im with valerie on that. We think lit be a lot of vo volatility related to the election there may be a lot of volatility tonight at the debate valerie and david, thank you very much. Sure. Kelly thank you. Tilman has told us several times las vegas cant come back until the Convention Business comes back how one has a plan to get the groups back. Offered by the same biomets rick company th biometric company that helps. You would get a rapid covid test on arooifrival that comes back 2 minutes and temperature checks clear was successfully implemented in the National Hockey leagues bubble in canada of course, tilman is not the only one preaching the important of group business. Las vegas sands says its strip business cannot recover until groups come back think about chicago, orlando and other convention oriented cities they have the same worry its an uphill climb states are still restricting the size of groups right now in nevada, 50 people the infection trends nationally arent good. The nfl announced an outbreak for the Tennessee Titans eight people positive. In person Club Activity shut down same for the Minnesota Vikings who the titans just played and casino stocks reacting poorly today. Mgm down 4 . Draft kings turned negative. These are all companies that depend on one, sports going on and two, groups getting back in the game strip wide, they are counting on a protocol that gets these conventions back into business and brings back sales meetings and things like that companies that ought to tack that on. I dont know what fee is this is brand new information just coming out right now. If you would opt to do that, it would give another layer of Health Security to the event that youre planning we could see this deployed not just for conventions and conferences but think about concerts we could see this coming into play or the sports arenas. How do you pack people back into the new allegiant stadium. It was supposed to open in september. Its still closed. You cant have a Convention Im told they are anticipatianticipat anticipating the governor may increase the size of the permitted group to 250 people because of this system and remember, who is on the Coronavirus Task force for nevada but former mgm chairman and ceo. Hes been at the ground floor trying to break open new ways to kind of give a digital vaccine for these Group Businesses so they can get nevada moving again. All right thank you slr much coming up, the high flying home builder stocks cooling off today even with home prices on the rise Mortgage Rates at record lows. Well dig into the names that still have room to run you see some of them on the screen amazon is down more than 10 from its all time high hit at the beginning of this month. Is the stock now on sale a top trader will weiginh when more power hundrlunch comes to u hmms and ahhs heard incall. A big deadline is looming tomorrow airlines say if they dont get more money from the federal government they will have to cut thousands more jobs. Phil joins us with what the airlines are saying. They are looking for 25 billion more in a little over 24 hours. Thats the deadline by the end of tomorrow. Otherwise, they will no longer have payroll support for thousands of airline employees and as a result, at least 31,000 employees are scheduled to be furloughed starting on thursday. Again, if they do get this aid, it would guarantee those jobs through march, at least 31,000 scheduled to be furloughed most of those at american and united southwest is the one airline out there that said we will have no furloughs. Here is the problem. Passenger levels have not picked up at all. They are still down 65 to 70 depending on the day the International Air transport association put out a forecast today expecting lower q4 traffic than originalliest mate lly esd were talk about united, jet blue and alaska. Do they take the money from Treasury Department in terms of a loan by tomorrow evening and how much you ni united said they will take a loan but we dont know what amount three airlines said they will forego loans from the Treasury Department were talking about southwest, delta and spirit they will not be taking money from another 25 billion that was set aside for the airlines thats the other deadline thats looming. Let me understand this correctly, are there things moving on two tracks on the one track is a loan provision from the treasury . On the other track is a 25 billion legislative provision that seems to be moving in congress lets take the first part the 25 billion dollar that was set aside for the airlines as part of a treasury loan, thats money that the airlines can b r borrow to pay daily expenses, pay the business as they losing tens of millions of dollars. Thats not money that the airlines plan to use to put towards payroll support. Separate from that is whether or not theres another 25 billion set aside by congress and ultimately approved as some type of stimulus package that would guarantee all the jobs that would be furloughed starting thursday you have two Different Things here. Thank you very much lets get to the red hot Housing Market home prices jumping 5 in july we learned that this morning the home Builder Sentiment index continues to out perform by double digits. Thats ha i mean about the home builder etf. The question is can the billers keep up with the Strong Demand and which names in particular have more room to run. Ill start with you. Its good to have you both here. Who would your favorites be and to what extent are high home prices helping versus hurting some of these participants thanks for having me. Our favorite names are lenar and taylor morrison. Youre seeing a scenario where demand is far usurping supply we think a defensive move as well it will help them maintain margins. We think numbers need to go higher they made a real pivot from the trade up to the entry level buyer for the last couple of years. Thats where the demand strength really lies on that entry level segment. We like the two names. You think rates could go lower. Thanks for having me. If you go back to the before covid days, theres a spread between the Mortgage Rate and that increase because of covid if that spread narrows back to where it was precovid, that can take us to 2. 3 . Will it narrow back or is there a new normal here . I think its all the way back we seen it over the past six mons, its narrowed about 50 basis points it could continue to narrow. What would happen if we saw a Mortgage Rate headed towards 2 . What would that do to home prices because while it may help the builders to some extent, its obviously just a mathematical equation. It meeans people are using that monthly budge et cetet to go fa. Everybody is in the same boat all together what would happen if prices continue to rise as quickly as they have over the past few months t something were keeping an eye on we think they will handle this volume we could see that natural widening there further if you got a 3,000 a month housing budget, you can afford 100,000 there are more home at 275 than at 4 this is real buying power. If you think about where were at with demographics, a lot of First Time Buyers coming into the market, they are paying that or something higher in rent. This puts purchasing power in the average buyers pocket. Rates go down, prices go up. The end of 2018 when rates spiked, new home sells hit the brakes its a risk to the extent builders push on the price side. Thats one reason why you like lenar thanks so much we appreciate it tyler, over to you still ahead, two big battles. First President Trump and democratic challenger joe biden go head to head tonight in the first debate well tell you what investors should watch tart hitting an all time high as it gets ready to take on amazon prime day. Traders will tell us which name is a better buy now. More power lunch, next welcome back target is going head to head with amazon announcing it will hold its sale on october 13th and 14th the same day amazon will hold its prime event. Target is hitting a record high today and out pacing amazon over the past three months fp for o for who can win, lets bring in the tradie ining nation group can both companies skucceed in this environment where more people are shopping online i think both companies can sk succeed. They are Different Companies amazon strength is limitless choice and convenience target excels. They have the better coast you have the look and feel of the products both have adopted well to the covid economy. Targets biggest problem is supply chain they have a problem of satisfying demand. Its a good problem to have. A lot to take into account there. If you had to pick one, which one would you be a buyer of . Tough choice. They are both winners. I think both need to be in your portfolio. Looking at target, setting a record high today. Its not too expensive p e 22 looking at the chart, we had had a break out from after the earnings 140 will be a big support level. Id like to be a buyer there above 2 good perspective. Thank you. Head to our website or follow us on twitter kelly. Ahead, its trump versus biden tonight in first president ial debate. Well tell you ha the markets will be watching for a few years ago david tepper left new jersey and took his billions with him. He even bought a Football Team down south hes coming back just in time to be hit with the millionaires tax. Stay with us stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. We did it c crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Welcome back here is your cnbc news update. Democratic president ial candidate joe biden has released his tax returns for the last year he and his wife jill had a tax bill of about 300,000 in federal income taxes on income of just under 1 million Biden Campaign says President Trumps campaign requested the moderator of tieonights debate not mention the pandemic death toll the Trump CampaignCommunications Direct tor denies that claim and calls it a lie. In northern california, firefighters are getting some help from easing winds across that state nearly 19,000 firefighters are battling 27 major wildfires. Kuwait has named its new leader hours after the death he will succeed his half brother and be sworn in tomorrow morning. Youre up to date. Thats the news update this hour back to you. Thank you very much. Markets well off their session lows right now two out of those three are just a tad negative as is the russell 2000 the oil market is closing for the day. Lets take a look at whats happening now because were off the lows of the session for oil prices as well if you look at wti u. S. Crude prices, 3. 5 lower 39. 16 the last trade there. Economic concerns really playing part in that discussion. Take a look at some of the other things were watching now with regard to the Energy Complex overall. Energy stocks, year to date half its value gone that growing divide playing out. Check out whats happening with apache, valero all of these guys, oil services, refi refining all of these in the red and the one stock in the s p 500 positive for the energy sector, 2. 5 gains for one oak well if that trend continues. All these stocks have been beaten up really badly over the course of the last year. Back over to you certainly have. Thank you very much. The first of three president ial debates taking place in cleveland tonight recent polls from the battleground state show joe biden leading. What should investors be watching ahead of the event . Stephanie, its good to have you. I read that 84 Million People tuned into the first debate between trump and clinton last time around. Sfrn its much lower than that, were still talking about a lot of the public what wants to see how they answer these six big topics that are being laid out what do you think will be most important for investors to listen for its not a catalyst for a huge swing one way or the other and how voters will cast their ballots. Theres been a bun mp of research that shows its not to be determine tifr of how a voter will vote based off their experience in watching a debate. What im looking for are the promises that the two candidates forsee each other to make or one of the two candidates decide to capitalize on a public proclamation to try to gauge out what policy will look like should one or the other win. The two things im looking for in this case are around china trade and around the legislative filibuster trump is tough on china. The debate could move biden toward a trump position. Biden has to defend himself. On the legislative filibuster this is a procedural kind of boring thing that happens in d. C. If you remove this then you only need 51 senators which would mean every two to four years we could have really big policy changes if joe biden endorses a legislative filibuster that would be really big deal to me stephanie, on china trade like you suggested, there may not be that much space between the two candidates that it matters for the near term. I wrote about this a week ago but its real eye opener it would be interesting to hear trump talk about hes kind of laid out what that could mean you could get adding obama care one cycle, then repealing it the next that would be the certainty the market would hate. Theres something for gridlock gumming up the works the other issues like adding d. C. State hood, i dont know but it could be one area where theres a clear difference between the two. That would take a Democratic Senate too, right . Absolutely. The reason why democrats are saying they want to do this right now and the senate are saying they want to do this is in retribution for what they feel is unfair moving a Supreme Court nomination through because the executive calendar in the senate where nominations are handled, they got rid of that 60vote thresholds if you get to do whatever you want in our job as hiring for the president then we get to do whatever we want if we win on legislation. Both sides will capitalize on it if it goes away, it just wont matter who is in the majority. Policies will swing back and forth which will a nightmare for the market in terms of the stock market over the next couple of days, im curious what your take would be if theres a clear winner on the one hand or on the other hand, that it descends into a food fight debacle and americans go what have we gotten ourselves into worst case for either candidate and right now i think trump is more at risk is to be constantly playing defense rather than offense. They need to be doing saying here is what value im going to tlifr for you john q voter if both are depending themselves and fighting, its going to feel very disorganized and scattered. I think the market like certainty so trump provides certainty. The market doesnt hate biden but hates change and the more that it feels like there will be change it will be more of a negative one observation is mr. Trump knows how to play an offensive form of defense under all cases. He seems to play a pretty good offense when hes on defense i know. If he undoesnt like it, its l. Thank you very much up next, were checking in on three of power movers frequent flyers they are moving higher on this down day shares of nio are up this year well speak to an analyst who says this just the beginning thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Welcome back its time for power movers greatest hits. We begin with beyond meat. Expanding distribution of its beyond burger in walmart adding about 1600 Additional Stores next up, sorrento reporting two positive results for antibodies studying to fight covid19 these are early tests. We end as we do with peloton a new all time High Crossing 100 a share its never closed above that level. Kelly. Tyler, i think the share prices tracking with a number of peloton rides you had. Possibly. Resistance and cadence. Thats the two numbers in front of you adjust them accordingly. There you go if it catches up with ty, were talking peloton 150. Lets get to the bond market rick is tracking the action for us rick the data today was kwiequite important. No matter how investors feel, todays numbers were good except for the trade balance. Trade balance at 82. 9. Almost 83 billion is the widest ever that was with positive percentage gains on imports and exports. Consumer confidence really zoom, zoom, zoom really consolidating like all treasury you can see august through september what were seeing is 140. Look at boons. Boons closed at minus 54 an 8 week low yield. Giving back all its gains over the last couple of weeks you can see its bugz up after touching a two month low several sessions ago back to you. David tepper is bringing his billions back to new jersey. Where the big bucks are moving thats next. New jersey state treasurer may be celebrating as david tepper says he is coming back to the state and just in time for new millionaires, details on how much this could cost him. Kelly, it is news when a billionaire moves from florida back to new jersey tepper moved to florida in 2014. He paid so much taxes. Now hes back just in time for new jerseys tax hike and that budget crisis. Now new Jersey State Senate president Steve Swinney saying tepper called him saying he moved back in january. Tepper saying you have an extra 120 million coming from me, meaning the states new 10. 75 tax rate on teppers comp of 1 billion next year will be around 120 million a year in taxes that is about a third of the intire revenue that state hopes to raise from its new millionaires tax now when tepper moved to florida, he was the public face of wealth flight, that is wealthy moving out of high tax states to lower tax states but another investor may fill his shoes h he is threatening to leave californias wealth and massive income tax onz job creators and moving to a lower tax state. Guys back to you yeah. And gunlock apparently is getting pitches from realtors. Do we know why tepper made this move back to new jersey . Well, he moved to florida saying it was family reasons to be with his mother and sister. He moved back also what im told for family reasons and now that is believable given that taxes are now much higher than when he left first time all right yeah, thats got to be a high bar. Shocking news. The robert, thank you very much. Thank you very much and the biggest name in investing will gather tomorrow virtually for cnbcs annual delivering alpha conference. This is number ten in the series among the big names will be joined by tomorrow jeff ubben and john rodgers for the full list and register, go to deliveringalpha. Com. We have a market flash now. Were seeing drops intraday some of the big Exchange Operators like nasdaq, the intercontinental exchange, ice, Parent Company of the new york stock exchange, also cme group which kind of owns the cme in all the other kind of associated exchanges in that ecosystem, it is due in large part to headlines coming out of bloonlberg sayibloon bloomberg saying that the data pricing is now the target for the trump administrations antitrust cops, the antitrust division so those particular headlines are what you can see there sending the prices down lower untra du intraday thats the reason why. Well continue to look into this and make calls with regard to the comments but for right now, tyler, thats the reason why all the big Exchange Operators are moving to the down side. Back to you. All right dom, thank you very much the nikola saga taking a new twist. The stock lost three quarters of the value over the past three months is the deal with gm in jeopardy . Remember, you can always watch or listen us to live on the go on the app i cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. Welcome back the rush for electric vehicles is on and investors are piling in not just to tesla shares of nio are up 7 today. And more than 400 this year a new noete, nio may become bth next auto icon brand good to have you with us why are you so confident that nio, a company that made something north of 24,000 vehicles so far this year could be an iconic brand hey there thanks for having me on. Youre welcome. So we basically did some research and we came upon a study from bit auto which is a leading ecommerce auto platform in china if you look at the results of the study, they actually show nios favorability and ranking much higher than every automaker. And this isnt just premium. This is mainstream we their the driver for this is focus on post Purchase Service so, for example, they have a Battery Swapping Network they also have mobile truck charging basically the combination of all these factors drives people to really appreciate the high level of service there is the reliability and this is the most reliable ev so the volumes are it seems theyre very well positioned we think as more people hear about it, as more people drive the cars, as more people get in touch with the technology. Its about what, 24 a share its right now about 21. And where do you think it could end up i mean is this a company that has the potential to grow to the scale of one of the big automakers or even teslawhich is one of the biggest by market value. It probably is the yeah. So i think the approach to this is a little different. I wouldnt necessarily compare it to tesla. Theyre not trying to, for example, vertically integrate the Battery Supply chain which im sure, you know many people have tuned in for last week. Theyre much more focused on the ev, the service, the software, the economist side i dont think its necessarily the next tesla, per se but is it worth more than it is right now . I think so very quickly, can it be a global brand and not just a chinese brand . In other words, does it have that kind of scale quick 15 seconds, please yeah. It absolutely can. But theyre going to launch in europe they think theyre going to go into norway just for our reference, the main competitor went to norway last week my ancestoral home. Thank you very much. Kelly . That explains the mathisen. Thank you for watching, everybody. Closing bell starts right now. Welcome, everyone, to closing bell. Im sara eisen stocks recovering from an earlier plunge in a volatile session. Another one here on wall street. Investors weigh a number of major wild cards facing this market lets look at what is driving the action right now President Trump and joe biden taking center stage tonight nif in the first president ial debate. House Speaker Nancy Pelosi