That debate this hour. Look at whats leading the dow now. It would be Goldman Sachs up nearly 6 . Apple and microsoft leading the tech heavy weights they are in the poll positions power lunch starts right now thank you, tyler stocks are near the highs of the session right now with the nasdaq leading this mid day turn around lets get over to bob for more kelly, it doesnt feel like it but its been a very volatile two days i want to show you the s p 500 believe it or not, we have moved in 100point range in the last 24 hours we opened yesterday about 3320 and we had a low this morning at the open of 3220 theres 100point range. Right now were in the middle. Part of the problem is valuations we cant figure out where the stocks should be even the megacap names okay, they are up today but they have been all over the place apple has been 105 to 112 in the last 24 hours. Thats a pretty big range for the biggest stock in the United States the problem is our cash like to sap we did this within this morning. The whole world is turning the momentum stocks. September has been a very tough month for momentum if you look at the s p 500 were down 7 . If you take the big five megacap names out there, they are down an average of 12 this month momentum has had a tough time. Who can blame them everybody is trading these reopening names. The names associated whether covid goes well or doesnt go well your market is dominated by momentum traders not fundamental traders which is what you usually would want here as those momentum traders are believing in technicals and very tight sell stocks. Thats why you go up very quickly and suddenly if it starts going down, the momentum guys drop because they have the tight sell stops wash, rinse, repeat. Keep doing it over and over like groundhog day depending on what the news is. If you look at the market moving trends we talk about the five buckets moving the stocks, vaccine and treatment, thats been positive all month. The news is good there the reopening in stimulus, negative for the markets china trade tensions are higher. Thats a bit of a negative and valuations you can see a number of negatives that are weighing on the markets approxima you got a deal with the valuations and with the stimulus issues as well back to you. Bob, thanks very much as you mentioned, tech is higher today led by the chip stocks nvidia, amd and lam research the xlk is down 10 in september so far lets bring in josh lipton for more on this september swoon josh kelly, it has not been an easy month for apple bulls even with todays gains that stock is on track for its worth month now since november 2018 that stock is still up about 100 from the march low. The semis down about 10 from this recent record high. Were seeing high flier get hit hard names we talked a lot about like flr nvidia and amd with the proposed acquisition of arm could be the next intel. Finally, Cloud Software names also slumping. Check out the clou on track for its worth month since march. Pipers brent bracelet who covers the sector tells me the cloud transition is real its accelerating. What has changed, he says, Risk Appetite and valuation his top three pick, zendesk, dwdw twilio and salesforce. What is the biggest driver of the market lets bring in lindsay bell. Why is the market acting the way its acting . Had this really impressive run in summer into the beginning of september it increased valuation just like you guys talked about. Thats a level we havent seen in more than 20 years. I think that we are in a volatile month and theres this lack of information flow you listed out very nicely all the concerns that are on investors minds. Those are concerns that have been persistent for a couple of months now why the worry and focus now. Theres a lack of focus on other things like earnings, for example or especially one of the key topics is stimulus we have seen that really removed from key head lieps in receline days the market as such is acting in a bit of an erratic wave ov last several days it does feel that way and to hear you put sharp point on it like that is comforting. Larry, let me turn to you and obviously there are a couple of sort of binary trades. Theres tech versus nontech there are consumer cyclicals and theres the reopening trade versus the stay at home trade. On that, where would you put fresh money now in the reopening trade or in the stay at home trade . Where is the greater opportunity . Yeah, i would continue to put money with the stay at home trade. As ive been on the show before we talked about the k recovery where you want to be at the top half of the k where you have visibility of earnings and you can see where the earnings are being revised higher thats where youre going to continue to see the best earnings Going Forward thats where i would continue to put it you mentioned tech one of the things that people continue to talk to me about is tech looks expense tifr. Well have Earnings Seasons coming up here soon starting october 26th for the pick tech names. They come in about 7 above their earnings expectations. That kind of draws back some of that thought that a lot of people think is in the sector. You know, lindsay, let me turn back to sort of whats driving the market the market has its own mind and goes off in its own directions i would have bet last night, as i was watching what was going on in various cities across the country that the market would have hard time digesting the social unrest that were feeling right now. There is a debate on tuesday night. Who knows which way its going to be and how nasty it could get. Theres an election coming up. Theres a lot of uncertainty and division in the country. The country seems to be raging in many ways yet the market is up 200 points today. Its unfortunate. History shows the market doesnt react to social unrest i think the president ial debates, v. P. Debates will add a little more volatility to the market tarn days those are on. I think the market is forward looking. Its forward looking mechanism they care about Earnings Growth. Stocks like the follow the trend in Earnings Growth what we have seen from earnings over the last several weeks is they are moving higher for 2021, believe it or not. You usually see numbers come down we had the housing numbers that are a bellwether on the health of the economy and the confidence of individuals. Let me turn back to you, larry, if i might obviously, the election can effect the market. What can the market and its actions in these days and months tell us potentially about the election i think you bring up a great point. If you look at the s p 500 its been one of the best predictors of who will win the election its called the election 87 of the time the way it does that is you look at the performance three months before the election. If its up, it adviser the favor the incumbent. If its down, it adviser to favor the challenger if you think back to september 2nd, we were up about 7 that was for an easy victory for President Trump. When you look at the polls and predicted and the betting markets that had a little inconsistent story there the fact we have pulled back and right around plus or minus where we were, i think thats more consistent with the fact we are in a toss up leaning towards a Vice President biden win Going Forward. I would keep a close eye on that i understand cater through the election thank you very much to both of you kelly. Amazon is holding a virtual product event today with some announcements. Lets get the details. Kelly, that event just wrapped up about ten minutes ago. For amazon, is more just 45 minutes into that event they announced these things a new line up of echo devices. Three new ring products, a mini drone like ring camera and among other thing, a new game streaming service, luna. We have seen this. The idea is they put all these devices out there and see what sticks amazon, however, eleases a wid range of in digging into the gaming piece of this probably the most significant announcement. It collects to the cloud rather than a local device. There will be more controls but there will also be more features one that caught my attention was the abilities of alexa to pick up more sounds they gave examples to snoring to dog barks. Useful but unnerving this ability to do more but the ability to learn more about us its a lot unnerving but at the same time people keep buying it and finding a lot of these features useful. Im sure they will say the baby crying can serve as a baby monitor. You and i have a lot of experience with those. You put all these different devices into one handy voice controlled one and again and again convenience takes the priority over privacy concerns not for everybody but for quite a few. Right it can track the baby cries and turn on a light so you can continue to sleep. There was positive privacy feature thats come out of this which many have been asking for. Thats the abilities to tell amazon and alexa to not keep any recordings of your voice in the past or the future there is that abilities but i dont believe that ability is default. That perhaps is the next step. Of course, as the features widen out, as we get more and more ohm this, we need even more Privacy Protection its interesting they are trying to get that balance and that was very much on stage today on the virtual stage today throughout that hour long event compare it with rock the baby back to sleep because turning on the light will not do it for me. Thank you very much. Coming up, well have more on the markets, technology and utilities leading the s p 500 now. Health care is the only sector in the red rising jobless claims. The latest sign of a sluggish economy or a recovery that seems to be slowing as we are now 40 days from the november election. What does it mean for President Trumps chances . We have those details. More power lunch right after this welcome back jay powell testifying o Congress Third day in row hes been doing that hes not the only fed official speaking this week their comments may be confusing and unsettling to the markets. St. Louis fed president James Bullard said a sort of full recovery could be within reach by the end of the year if Third Quarter gdp grows at 35 and Fourth Quarter gdp grows at 10. 3 . He also said unemployment could substantially decline because businesses are proving they know how to adapt to this pandemic. However, some of his colleaguesc tools like kwaunquantity taifti easing may not be a response jay powell said the fed is nowhere near pulling back on its blan balance sheet. We are a buy and hold i ve investor we allowed assets to maytuture d run off on their own we wont start doing that until way down the road. In the range of outlooks from fed officials just underscores the death of uncertainty all these things are tied up together back over the you. Here to make sense of that fed speak including more bullish comments from James Bullard, diane joins us now what do you think the fed is trying to do here . Well, i think its clear that fed chairman powell is pleaing congress for more aid and many of the fed president s agree with him. The outlier is bullard even though he acknowledges the role the stimulus played in supporting the economy early on. I think they are having a real problem with communications these days, i do think theres a sort of underlying commonality in terms of what the fed can do to cure what ails us and they are limited. They are running out of rabbits to pull out of a hat chair powell has emphasized this is the role that fiscal policy must play. Theres the short term and long term issues here. In the short run they are trying to get congress to pass another stimulus bill but in the longer run they are trying to persuade markets they are serious about letting inflation hit 2 and run bovr th above that do you think that accounts for the mixed messages now if we were to get another covid bill they talk about let it rip . This is really an interesting issue. I think its really important to understand what the fed appears to have agreed on. They have agreed they are willing to overshoot on inflation a bit to allow raiwag to rise as a share they get back the 3. 5 unemployment as soon as possible and let it run for a little bit. If markets believe them is not great for profit share in the u. S. Economy and its not as good for Financial Markets but better for main street than wall street that said, with the fed raise rates, the trajectory matters. The fed would not hesitate to raise rates if inflation moved up from 1. 5 to 3 the trajectory of that matters too. They would then have to deal with that. What we worry the most about is that if congress doesnt provide aid, you could have enough consolidation and a supply side shot that you have a price increase at the same time the economy is still stagnating. You threw in about how if the fed were to achieve this goal, it would be bad for markets because it means a profit share of the economy would shrink. No one seems that concerned about that right now thab they think well worry about today and take that issue tomorrow if and when it comes. They havent been able to sustain 2 inflation yet alone go above it. If they run the economy a bit warm to allow for more inclusive which is really new language for the fed growth and it really implies a raising share. Were seeing the wages slerts in the latter part of the expansion before they raise rates and wont be preemptive about inflation. The market says fine thats what youre telling us. You havent been able to achiever it in quite a long time we dont really believe you yet. He predicted a thinker quarter gdp growth rate north of 35 , do you believe that is plausible and what does that mean does that mean 35 higher than in the second quarter. 35 faster than what much of that comes from the fact we had a sharp rebound in may and june also you had to do is hold onto some of that growth in july and august which we have been able to do to get those kinds of numbers. You can have a slow down in september and still get those kinds of figures of close to 30 . Not quite as aggressive as that. Thats an annualized growth rate the gains dont make up for the losses right there even if employment picks up i think the issue is were still in the hole by quite a bit, much more than the great recession. Bang. You nailed the point that was my next question was going to be do those growth rates mean our economy will be bigger than it was a year ago . Back to the levels of output of year ago and you shade your head no what is bullards gain here . Why is he so out of step with his other fed folks . Does he have his eye on some other job, what . I dont want to get into speculating why not he has been an outlier for a while. Its not my job. Out of my lane its important to understand hes been out of step with his colleagues on this for some time most economists have agreed upon is the course of the virus and the course of the pandemic determines the course of the recovery what were seeing is a resurgence in cases in the u. S. And europe thats a real problem going into the Fourth Quarter we really are very concerned i share erics concerns about a second wave and what that might mean for the u. S. Economy. We have Small Businesses permanently closing. Its important the lose those employers out there and see doors shudder for good thank you very much we appreciate your time. Stimaheall ahead, the fed h changed calls for more stimulus from congress. Can a deal get done . We have the latest plus a new bank of America Survey says more people are waiting for a vaccine to travel again. We will break down what that means for the credit card stocks i felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. For skin as alive as you are. Dont settle for silver gold bond champion your skin with the icon that does the same. The rx, crafted by lexus. Lease the 2020 rx 350 for 409 a month for 36 months. Experience amazing at your lexus dealer. We have a news alert julia has it tyler, viacom cbs probed and resolved a Sexual Misconduct allegation against the ceo the board independent review concludesed and the investigation did not support the allegation the complaint was made by a former employee of nickelodeon channel and hes been ceo of the combined Company Since they merged less than a year ago. This comes after cbs former ceo resigned after allegations of Sexual Misconduct, harassment and intimidation kelly, heightened awareness of these issues now back over to you the stock is holding on the about a half a percent gain. Airline travel picking up but nowhere near prepandemic levels bank of America Surveyed 25,000 people around the world which showed more people are waiting for a vaccine before they will feel comfortable flying than in june others are waiting for restrictions to be lifted. This could trickle into the credit card stocks that rely heavily on travel spending lets bring in research analyst. Whats the most important take away from these findings first of all, thank you for having me today. Id like to point outprehensiven conjunction with our airline and Hospitality Team we had over 25,000 respon dents around the world one of the over arching take aways in a set of broadly characterized as mixed results, 27 of those surveyed say they will not fly until theres a vaccine widely available keep in mind we did a very similar survey three months ago and the number was 24 at that point in time. From that perspective, the willingness to travel is gotten a bit worse. Conversely, one data point that was actually a little bit better this time around was the percentage of respondents who said they will not fly again, period, regardless of a vaccine. That number was 15 three months ago and only 8 in the latest it ration of our survey you cover visa and mastercard at your day job among other t j things what do you think the implications are for these names . Its important to remember that visa and master card make a disproportionate about of their revenue and profit specifically from cross boarder travel. Domestic travel is one thing b