Well talk to an influencer and you have no idea how much i want to be an influencer about how she is making money on tiktok. Later, godiva chocolates is remolding its business amid the coronavirus pandemic the ceo will be here to tell us whats working and a lot is working for this company in the consumer space power lunch starts right now thanks welcome back welcome to power lunch. You can see that tech continues to dominate the market today the sector up more than 2 outperforming everybody else thats in large part to apple up 3 today shares of apple are now up about 50 on the year. Its been an incredible run. That brings the companys market cap to 1. 9 trillion and change. Were within tuouching distance of a 2 trillion dollar market cap. Also take a look at nvidia today. Its up more than 85 this year. Nvidia has been a monster. Tesla up about 4 to just under 1500 share. Theres one wall street analyst chasing shares well have those details shortly. Tyler, back to you congressional leadership also today and the white house trying to find Common Ground on the next stimulus package even as we speak here kayla has the developing details. Hi, kayla. Compromise has been elusive on this front. Trump Administration Officials are sitting down once again with top Congressional Democrats for the First Time Since saturday to try to figure out if a compromise is possible republicans have been open to partial deal while democrats have been seeking a larger stimulus package opinion mark meadows entering the negotiating room earlier this afternoon. When asked about his expectations for a deal, he said none yet besides funding for schools and new stimulus checks, there appears to be agreement on little else. Both sides accused the other of misrepresenting their positions and not negotiating in good faith. President trump says he remains personally involved in shaping the white houses stance on this but hes still finds a third of the democrats proposal to be a nonstarter. They want to bail out cities and states they want bail out money they want a trilliondollars in bail out money a lot of people dont want to do that because we dont think its right. Reporter that was President Trump in the roosevelt room speaking at an event for tech workers just last hour we await any news out of capitol hill back to you. I was going to say as the president pointed out there, there are multiple areas of disagreement but one of the key ones isthe difference over the extension of the 600 a week supplemented unemployment insurance. The republicans are on one end the democrats are on the other how hard is it to bridge the gap and meet in the middle reporter its not only hard to bridge the gap between the proposal of 600 a week in the supplement that continues until the end of january and the republicans proposal which is 200 a week until october and changing it to about 70 of workers base pay prepandemic. The question is how do you do that calculus. Democrats said its impossible the state systems are antiquated and cant do that type of math why they selected a flat dollar amount is they did not think states Computer Systems could handle that but they believe it should be a percentage and there is quite a bit of distance between where they stand the administration tried to advocate for a short Term Extension of that 600 just last week and democrats said, no. We want the full thing until january. Thank you very much kelly. What does washington, in terms of what they do or dont do this week, what will be the impact in terms of what it has an on the economic rebound kelly, after a historic gdp plunge in q2, economists forecast an equally historic q3 surge in gdp but economists are not confident in the survey and not united about it. Aft the big 33 plunge, the average of economists look for a 21 gain in q3 after that growth is forecast to increase by 7 and 5 . Its not enough for the full year gdp is seen declining by 5 in total. The range is also large. Almost a 15point gap between the bulls and bears between the optimists and pessimists the swing factors are what kayla was talking about. What happens with the virus in washington and how quickly and fully the economy ends up reopening. Over at barclays they said the july data is a reminder that Downside Risks we main and the economy has not transitioned to a selfstaining Virtuous Cycle a strong judge number got it off to a strong start. Jum and august seem to be flat gdp will grow robustly but the High Frequency data turned flat to negative. Goldman beginning to worry about the jobs market. Here is what they said in a comment tear over the weekend. Our trackers suggest that current Household Employment has fallen by roughly one million since the june survey week as of july 15th, the Unemployment Rate has risen. He sees it as more as a bump in the road it was interesting that the ism report was as strong as it was this morning especially new orders some are saying dont be persuaded the recovery has lost a lot of momentum. It could be theres two tracks going on. I heard this explanation that you have manufacturing making a rebound from very low base but its the Consumer Spending at points of sale that and also the rehiring and reopenings that has really gone flat here. Maybe you have this manufacturing rebound and that may or may not be met with whats going on. The best you could hope for is the july data, which the High Frequency is already flat. Wool see if that shows up in the government data. Just hope its temporary and that august, this is what bullard said, get the virus under control. Have people Wearing Masks and the economy can have a really strong rebound can i ask you a freshman economics question that is are the numbers that come out, 30 decline in the Second Quarter a potential 21 gain in the Third Quarter. Are those measuring sequential changes quarter to quarter, not year over year if they are measuring sequential change, how much smaller in the Third Quarter of this year than in the Third Quarter of last year its a great question you annualize that and get 32. 9. Thats why you get a big 21 rebound. The number i focus on if you want to bring that chart up, that bar chart up one more time is the full year number. The 2020 number. Thats the number im focused on most is where we end up relative to where we were after the rebound. Those other numbers are annualizing the quarter. Quarter change, yes it does over state the change. Tech stocks are helping the market shrug off weakness in the economy and concerns about a longer road ahead to recovery economically and medically at what point does the economic slowdown start to pinch the markets too . Welcome to both of you let me start, i just came back from vacation. I talked to lots of people and peoples main question was can you believe this market. Can you . Well, tyler, first of all, the market is disconnected from the consumer sentiments. Its not connected because of the drive or the push of the federal intervention with the subsidies and really putting over one trillion dollars back into the economy youre absolutely correct. Those who you talked to, theres a disconnect with whats happening in the general economy and whats happening in the Capital Markets. So, are the Capital Markets there for risky right now because of that disconnect one of the things we look at is do our management or both the u. S. Large cap centrstrategy and developed market strategy, were noticing this disconnect the problem being is if we dont get movement within washington, d. C. To continue these types of subsidies of the market, the bail outs, we could see a Much Different Market third and Fourth Quarter this is very tenuous ground that we stand on around this Capital Market were at roughly 3300 now. How vulnerable is the market from where you sit its vulnerable to short term volatility we would call the market fully valued or even fair at the high end of fair valuation. Thats really assuming the continuation of the very aggressive stimulus we have seen and the base case outcome. The market is justified remembering that the s p 500 is very tech heavy now. We think theres numerous potential catalysts for increased volatility and not just the budget negotiation and the lack of clarity around the next wave of fiscal stimulus but also uncertainty around the paths path of the virus uncertainty around u. S. China negotiations relations and the election coming up and the market needing to underwrite potential for significantly higher taxes change Regulatory Environment if you have a democratic tweet in the near term while were still leaning into quality stock and credit, were taking profits. Taking some money off the table in order to weather some short term volatile and hopefully enter at better levels in the future. You anticipated my next question which was to turn the corner and tell me what i should do with my capital allocations now. You said were starting to take some money off of the table, what are you lightning up on and where is that money going. I sense youll say high quality credits, High Quality Companies that pay dividends actually, were using the large cap stocks, the winners, these defensive High Quality Companies that have been leading the market as a source of funding as well as Investment Grade credit were still playing the theme of quality and defensive sectors, weights and orientation but were shifting towards smaller and mid size stocks. Were looking at Quality Companies in europe and japan and Greater China and looking at the better kind of raided components of u. S. And european high yield as well as emerging market hard currency debt where we still see both attractive income levels but relative yield spreads compared to u. S. Investment grade credit where we just seen such a strong move so far. Really since mid march same question to you, in light of your forecast, somewhat cautious, where would you be putting money . What would you be moving out of and into and i note that you Like Technology and you like health care. Exactly what were do is we want the look at social license and what we noted in the technology sect sector, they are changing the way we work, live and play thats why were seeing those tech stocks do so well what were seeing is we still look at technology because we still see upside in technology names. We also look at health care. Health care has a major impact on the social license to operate through the vant age point of Healthy Lifestyles were seeing those companies that do well in health care maybe those ones that are further away from the Covid Research and those solid companies that their Business Case is still strong plus they have a strong license to oerpts. We measure profitability of very common quality measure and we see that the profitability will be what will drive this market forward. All right thanks very much hi, kelly. Coming up, microsoft is jumping on hopes it will make a deal to buy tiktok with backing from the u. S. Government were going to talk to a top tiktok influencer about the future of the platform video game stocks are soaring amid the pandemic. Well tell you what to watch after this quick break you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Microsoft shares soaring after confirming that the company has held talks to acquire the popular social app tiktok josh lipton has the details. It could be microsofts biggest acquisition in the Consumer Market. Confirming it is pursuing tiktok its interest here understandable tiktok is wildly popular with 100 million users here in the u. S. Microsoft would immediately become a bigger player in Consumer Technology and could monotize the pool of users with advertising. A business it knows well microsofts former ceo was on cnbc this morning and talked about the potential benefits of this deal. Some exciting proposition for microsoft. Obviously, it depends on the price. Price is important as well as whatever restrictions come with it from the government perspective. I think its an kpietsi inexcit for microsoft to increase its consumer base. There are risks here. The Consumer Market is fickle and microsoft would have to make sure that this would not over shadow the commercial cloud story. That sent microsoft stocks surging higher trump saying microsoft or another American Company would have to buy tiktok by september 15th and he wants a payment to the u. S. As part of a tiktok sale guys, back to you. Its that latter point id like to hear more about. Josh, thank you. Tiktok and many of its popular users are weighing their option if the social media platform does get banned or has a new power company. She joined the platform in april and has accumulated over a million followers. You can see videos of her sipging while being interrupted by indian dad. Welcome. Thank you so much thanks for having me are you worried tiktok get banned would you mind if microsoft was the new owner . I am concerned if the ban will happen. Am i concerned that microsoft will take over no ill be grateful i think this is a wonderful opportunity for everybody to keep moving forward. Youre at the cusp now of being able to make some pretty good money as an influencer on tiktok i know youre starting to get deal offers from other platforms as well. If tiktok were banned, would you try to just find i know theres reports that facebook or instagram is working on something. Do you think you would go elsewhere if you were forced to . If i was forced to, yes i hope thats not the case because really im just scratching the surface now ive only been on tiktok for a few short months im definitely moving around and using platforms that im comfortable with instagram, facebook, youtube and engaging audiences there my numbers on tiktok, my largest audience is there. I have access to a million plus fans, followers, audience, members. Thats really where the heart of it lies. Were you ever concerned about the fact its owned by a chinese company. I think its banned in india, right . It is banned in india just like when i driver a car, i dont know how it all works. I still enjoy driving my car i dont know the back ends i dont know about all these security issues. I cant speak to like an expert but i can tell you that personally i understand the concerns i dont know enough about it to really speak educated in an educated way on it i toetally understand what youre saying. Explain how popular tiktok is right now. Is there any other app that you and your friends really use or is this the go to . I definitely use all the platforms. Instagram, facebook, Youtube Tiktok has been this amazing platform for people to be themselves thats what i love about it. I started four months ago and it really was place where i came to sort of find my happiness and my i think i hear one of the videos going on in the background its somewhere i come to just be myself and i found people who are happy and being themselves on the plats foform themselves. Its been very whats the word its been real its been really real. Thats what i think the audience appreciates. Four months to tens of millions of followers speaks to its popularity and your success with it. Thanks for joining us. We appreciate it thank you ty all right. Thank you very much. Still ahead, tesla and rival nicola racing higher today the traders will break down which electric vehicle maker is the better buy right now look at those gains today. Plus, speaking of wild rides, take a look at this mystery chart. Shares of this Cloud Company are up more than 200 since the beginning of the year. Well tellouheamri y t ne ght after this quick break plap. Welcome back the electric vehicle stock sector surging higher today and reporting more than 300 increase in tlideliveries in juy while nikola caught a buy rating from Deutsche Bank tomorrow. Tesla adding to a more than 100 rally in the past three months lets bring in trading nation team to discuss. Boris, ill start with you your thaoughts on investing in nikola a company with no revenue trying to rival tesla i guess the question is will it succeed. Its impossible to make an investment in the whole space because i consider it to be a bunch of lottery tickets at this point. Having said this, nikola is the first real interesting competitor to tesla because its providing the first true value with a 600 mile range and the ability to create a power plant out of its truck for a lot of the construction industry. To me, the big question is, if nikola can deliver 70 of what it promises, i think it becomes an interesting competitor to tesla and that is very bad for tesla. That means tesla becomes Just Another Car Company and not fan boy stock. Its going to be very interesting in t