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. 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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 l