Power lunch starts right now lets get a check on the markets which are fluttering close to record highs. Slightly higher today well off the lows the dow was down about 100 points early this morning. The s p still just 1 away from record highs as it gains about 5 points take a look at a pair of housing stocks hitting new highs d. R. Horton is at its highest levels since january 2018. The doctor is in we begin this hour with new dovish comments from st. Louis fed president. We know he was the guy who dissented from the last meeting. Now he says a sharker than expected slow down is possible it will determine that on a meeting by meeting basis he does not expect trade uncertainty. Its not going to go away any time soon. In addition to trade, bullard highlights these downside risks, slower growth. That could feed into the u. S. Economy. Second, contraption and global and u. S. Manufacturing and third slowing u. S. Business investment hes worried about the inverted yield curve that suggests u. S. Monetary policy could be too restrictive for the environment. He says it cannot react daytoday to the trade war. He says certain insurance may help recenter inflation. Take a look at the outlet for the fed. A sec cut. Theres a 54 chance right now you call that 50 50 in the last hour i think thats probably just about right. It just feels like its got to break one way or the other. Maybe it will be trade that decides it got a little while. There was one other thing that you mentioned in the last hour we put together the list of all the fed speak this week. If you think you have enough, the whole bunch coming forward ester george will the speaking on the payment system. Robert kaplan on thursday. Five fed speakers b follfollowe two on friday. Is it too much fed speak . Never for you, i know that does the market misprice the fed for that i dont think we have too much fed speak for that people know to listen to certain people on the fed. That begins with the fed chairman all right, steve. Markets are calm today. There could be a storm on the horiz horizon. Bob. Hello bullard was talking about a sharper than expected slowdown that it could be possible. We may be seeing that in europe. Those flash manufacture pmi numbers lowest level in ten years. Germany may be close to a recession. U. S. Stocks have dramatically out performed europe again mixed Performance Today for u. S. Stocks kat is having a great month. Generally missed netflix down 10 in three days drop big on friday a lot of choices for consumers back to you. As we inch closer to the end of the month and the Fourth Quarter, is this just a calm before the storm gentlemen, welcome david, let me begin with you. Should i trust this qualm spot or not absolutely not. Remember youve had a lot of volatility this year you had a good rally in the last week or two. We are looking for a good deal more volatility. Both up and down but not is not the time to think it will be calm and now is not the time to be plowing new money into the market you feel the same way, brian . To some degree. I would say people got too bearish in august and they jumped on whan every kind of came back to work in september lets be clear, the fed remains a volatile subject matter. The trade policy remains a volatile subject matter. We could just caution investors for making any kind of binary decisions either buying or selling. Focus on Companies Just by really Good Companies to whether the storm through we believe it will be a volatile Fourth Quarter as well. David, ifi am going to follow your advice and kind of buy on dips, what areas of the market do you think represent the best value right now we think Energy Stocks are pretty interesting you had oil prices nup in the last week and a half the stocks havent done anything thats a group that led the market and the commodity price for the last few years we like a lot of Oil Companies here we also like royal dutch we like the financials here which have been a lagger and select Health Care Stock brian give me some choices sector wise that youve got your eye on right now we agree with energy but we like it north of the border. We think Canadian Energy are much better managed assets they actually should be doing better we Love Technology and Communication Services stocks as well we think those areas are the new Consumer Staples we have been in fjs for a long time especially the money center banks. Those scaleable businesses and financials we think are expressly owned around the world. We think that is providing combination of cash flow and dividend flow. David, what do you make of the renewed kind of downward slump in bond yields here. Is that putting us back on trend or how do you read that . We think if youre a bond investor yields have gone to the lower end of the trading range our u. S. Market is following a lot of what happened in europe we expect european bond rates to stay low but we think the u. S. Economy is much better we think even with the fed lowering rate there are Interest Rates will go higher over the next 6 to 12 months. Now is not the time to be buying long term bonds. We would be a seller rather than a buyer. We would focus on the one to three to five year bonds youre not going to get a lot of yield. Youre getting a comparable yield in terms of what youre getting in the long term bond. I assume you agree with that . Yes august could have been the top of the bond market the type of e notimotional buyie saw in bond products in the United States clearly rotation that we saw. Really moment from overseas. Fixed Income Investment coming to find some sort of income. Thats why we really believe from a longer perspective that Equity Income growth is an underowned asset and should be a stand alone asset class within Asset Allocation thank you very much thanks a lot. Auto worker strike is entering its second week when will it start to really hurt gm . Phil has the latest. You wont see the pain at General Motors not in a huge way. Im sure theres a bit of pain now. Youd have to go out four to five weeks thats the expectation of analysts who have been tracking the company and tracking the strike as we enter the second week of no production, its about 7500 to 8,000 vehicles a day production that General Motors is losing here in the United States they are also losing production in canada and also filter down into the plants in mexico. 50 to 100 million a day thats theest ha estimated impa. We have seen layoffs at the gm plants in canada and layoffs with some of the suppliers the president ial candidates on the democratic side they are taking chance to meet with uaw workers walking the picket line. Senator warren met with strikers on sunday. Vice President Joe Biden met with picketers on sunday Bernie Sanders plans to be in detroit later this week. Do investors notice at this point . Do they care take a look at shares of General Motors its flat. One week into the strike shares have done nothing. There was a bit of Movement Last week and came back at the end of last week but generally speaking this is not having a huge impact in terms of how investors look at shares. Thats because the Third Quarter impact expect to be limited at this point thank you very much shares of netflix under pressure today despite big wins at the emmys who will be the big winners. Plus pressure pointing on weworks. Is he being made the companys fall guy for the disasterous nonipo. The latest on the push to fire the founder micong up on power lunch. Man can i find an Investment Firm that has a truly longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Tmpblts disasterous ipo of weworks has a new twist. The companys biggest investor is pushing to get him out of here we have the details. The latest is a report from rou reuters saying adam has started discussing his future role and that could include giving up his ceo role and transitioning into a chairman role. If thats true would be a remarkable turn around for the founder who has managed to maintain majority control of the company through many realms of fund and put in place a provision that his wife would pick his successor should he pass away. The pressure on newman according to sources coming from softbank. Thats the biggest external investor softbank is represented by ron fisher who joined the board last year its unclear where other Board Members stand. The representative from benchmark trk or steve layman who joined the board back in 2012 where do his loyalties lie adam is more powerful than any of them. He can fire the entire board if he chooses if question is how can he best move his Company Forward and get the cash it needs to continue growing. Wework may not be able to grow at the same pace we have seen. Those are the questions to ask. Thanks lets put them to our next guest. People are pointing to your expose about Adam Neumanns lifestyle. What more have you seen in terms of reaction because we know what kind of character mr. Neumann was or is. It shouldnt be that surprising. Exactly right weworks Board Members have long known hes this very unusual character, the life of the party, et cetera they decided very recently to act upon that once the magic had worn off with the previously really high valuation that they had. Paul, what do you think is most damaging in terms of these anecdotes in terms of how he runs the company or conducts himself that may have changed softbanks mind about him or is it just the valuation. This were going out 30, 40, upwards of that billion dollars there wouldnt be any problem. I think part of it starts with socme of the marijuana usag on the airplane going to israel. Some of his behavior in terms of side deals his wife being involved in the business trademarking the word we theres a number of things that i would not call this a regular surprise, what we call predictable surprise that Something Like this would not go forward well i think the Investment Bankers and lawyers should have told him right up, like were not going to be able to do this unless we can kind of get you a little bit more reasonable in terms of your behavior or have you step aside. It should have been understood way in advance if you were consulting to weworks or their board about the messaging of this problem, what would your advice be i think the messaging right now should be dependent upon the conversations you can have with neumann himself. I dont see any way you get through this without him stepping aside i dont think theres time to get him are habilitated or try to redo his image. If i were talking to the board directly, if it wasnt him, softbank, id say you got to get rid of him to do anything. You get rid of him hope the business improves and that the market isnt as volatile as it is right now. Getting that 47 billion out there and making softbank invest on the basis of that, either they didnt do their Due Diligence or the lawyers their remains the small matter of mr. Newmans majority position as a holder of the shares how much does he have and is it a two class share system where he controls the voting shares. Yeah. They dont detail how much is his but he controls 30 of the shares but has majority vote he can fire the board when he wants. He very much has to be a willing participant if hes going to step aside the leverage point here one would presume is wework needs more money they will run out of cash some Time Next Year if Current Trends hold softbank could provide socme of that and ipo could provide some of that. You tell me how likely you think it is he would step aside. What other avenues do wework have if they want the funding and maybe want to stay private or still go public its hard to really know without being behind the scenes right now which we were. My sense is its kind of binary. Either hes going to step aside or it will be a fight. Hopefully well find out soon. Do you think that paves the way for an ipo yeah, i would imagine maybe they need dom back in a bit. A lot of the language in the ipo elevating the worlds consciousness there was a lot of mysticism. I think that was a very adam thing. The companys investors want it to go bub lick tie it off here you were pretty clear he has to go if they want to move forward. If you were talking to adam neumann, how would you try to persuade him ive had conversations like this before. Id say dont you want to protect this business you created and let it prosper into the future to do that you have to sacrifice yourself you wouldnt be the first remarkably gifted ceo who had to step aside i think in the interest of himself and his own company, he needs to think about whats best for the company at this point. I dont think it includes him. I really dont a lot of founders turn out not to be Good Business runners. Theres lot of history on that thank you very much. Coming up, why an Elizabeth Warren presidency could lead to a spike in the divorce rate. Lulu lemon heading higher today. Well ask if its a better buy than nike is stay with power lunch. Sometimes, they just drop in. 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Thats where the stocks gapped above. That level lends support you pull back in anticipation of what is a longer term up trend pointed higher neither one of these stocks really looks cheap in fact, arguably the opposite as people pay up for quality how would you view them . We would be neutral at best over the next three to six to nine months. With that said, some head winds are Consumption Patterns on a global basis they may decelerate. Over the next five years, if you look at five years, though, this could potentially be a very Exciting Group to own because you have the emerging markets, middle class thats going to become more of a bigger contributor to growth rates in this group as well as you have the move to direct to consumer selling on the internet. Thats as well will spread the express with higher growth rates as well as margins over the five year term well be more optimistic. Dressing more comfortably seems to not be a fad. Thanks a lot. Head to our website or follow us on twitter at tradingnation. Back over to you ahead, its full stream ahead. Should hbo be getting worried . Till taxes do us part. There could be a marriage penalty that could drive some wealthy couples to twors treasuries continue to fall. All this when power lunch returns. Who says our bank isnt tech enough . Everyone, look at your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. Welcome back here is your cnbc news update. The u. S. National Hurricane Center says Tropical Storm karen packing maximum sustained winds of 40 miles an hour is on track to pass near or over puerto