Hour. How his client base has changed. Lets get a check on the markets where these are correct me if im wrong fresh session lows. The dow is down 223 points now. And the s p is only down a half a percent. The nasdaq is down less than that. A tenth of 1 . The major averages give up more ground on those shutdown headlines. Nike still higher today. Sales were short of what analysts were looking for. Some optimism about improving Profit Margins and earlier inventory declines leaving investors to buy today. Nike shares up 7 . And we have you joining us on set for the entire hour. We have to start with the two big issues hanging over the markets right now. Strikes and the shutdown. Phil lebeau is covering the auto workers strike, Emily Wilkins is in washington, d. C. , following the negotiations over the Government Shutdown. Phil, lets start with you with the latest on the auto side of things. Its not good. And were hearing from frustrated executives at ford, we just heard from jim farley, youll hear more in just a little bit. Gm is equally frustrated. Were seeing an expansion in strikes at a time when they dont believe enough is being done by the uaw in terms of negotiations. Heres the expanded strikes. Two more assembly plants, one by ford. Its the one thats owned by ford. And then youve got the gm lancing Delta Township assembly plant. Ford explorer, chevy traverse, Buick Enclave are not being made right now. You add these shutdowns with the plants that were put on strike a couple weeks ago, you now have 22 of the big threes u. S. Production, u. S. Production, from the big three that is now effectively shut down. Heres jim farley from ford talking about his frustration. A bad deal was threatened now, midsize and much more expensive larger vehicles. We would have to choose to cut future investments in those products, restructure and reduce our head counts throughout the country including uaw workers. I believe we could reach the compromise on pay and benefits, but so far the uaw is holding the deal hostage over battery plants. Take a look at shares of ford and gm. Now there are essentially 25,000 big three uaw members who are now on strike at 43 facilities including five plants here in the u. S. General motors issuing a statement saying that it made a comprehensive counter offer to the uaw on the 21st, last week, still waiting to hear about that comprehensive counter offer. Theyre talking, but it doesnt look like theyre doing enough of the talking or they dont believe theyre getting enough back from the uaw. Stellantis was exempted from the discussions or the new wave of strikes that were announced today. The uaw said during his Facebook Live presentation that there is progress being made with stellantis. Keep in mind, guys, we heard this about ford last week. Theres progress being made. Changes a week later, they now have theyve got another strike that has hit them. And the frustration, i cannot put it into words, just how infuriated members of fords Management Team are. They just did a briefing and they said, look, is this premeditated. The uaw say were going to decide were going to keep doing these strikes, were negotiating, but were not really negotiating. Thats the tone that came through. Wow. Phil, stick around. Lets get over to capitol hill as the effort to avoid the shutdown has failed, Emily Wilkins, whats the latest . Reporter well, kelly, if theres a 95 chance we are going into a shutdown this morning, i would say that chance is around 99. 999 . The house voted today on their stopgap measure. This is one that mccarthy was trying to get all republicans on board with. But that did not happen. 21 republicans joined with democrats in sinking the measure and this means that mccarthy is going to have to find a bipartisan path forward. He cannot end a shutdown without appealing to house democrats. Now that bipartisan bill is that were talking about, that could come out of the senate, remember, they are working on a plan that would keep the government funded for 45 days. It would include currently some aid to ukraine, about 4. 5 billion. But it wouldnt include any Border Security provisions and that is what mccarthy says needs to be in that senate bill for him to bring it to the house floor. And senators are listening. You have a group of them that met yesterday trying to talk about what, if any, border provisions could get the support for both democrats and republicans. One thing mccarthy mentioned today is that you could potentially reinstate policies that you saw under both the trump and the biden era, slightly different policies, but they boil down to those wanting to come into the u. S. Seeking asylum would need to wait in mexico or other countries until they get that approval. But at this point, the senate bill isnt going to pass until monday at this point. And the house, we dont really know what the next step is here. Republicans will be meeting a little bit later this afternoon to huddle and figure out where the things stand. But at this point, it is clear that the republican plan is all be dead and now its just a question to see where the senate goes. Emily, okay, lets say a shutdown happens, hypothetically, what does that mean its going to happen. So here it is, what does it mean for government workers in essential areas . Reporter so for all government workers, all 2 million of them plus another 1 or so members of the military, it means theyre not going to get paid for as long as the shutdown lasts. That could be a week, two weeks, a month, we dont know at this point. If youre an essential worker, youre going to have to keep working and showing up for work and a number of workers, its up to each agency to deem what things they will do, what things they wont do. Youll see Certain Services continue. People will get Social Security checks, medicare and medicaid will continue. But you might not have a job support next friday. And then, of course, theres a question about a government contractors. Some will be able to continue working with pay, but others wont be paid for the duration of the shutdown or they wont be paid at all. Its a big question. Theres a lot of uncertainty here in dc. And i think the biggest question at this point is how long does a shutdown last. The longer it goes, the worse things tend to be. Not just for workers, but for the economy. Emily, thank you very much. And, phil, one of the biggest pain points was that tsa workers should still work during a shutdown, maybe get paid later. If they dont, it could cause huge problem at airports . What do you do about air Traffic Control operators. This has the potential to really bring traffic down at airports dramatically. And weve seen this in the past. We saw it in 2019. We saw it, what, about a decade ago. Thats the bottom line. You are asking people to continue working without being paid. And what weve seen in the past is some will do that, but a lot of people will be like, why am i going in . Im not getting paid. You cant blame them. Thats the frustration that the people who work for the federal government have if there is a shutdown. Right. And, phil, is there anything else that you would add in terms of the fallout, the broader impact, if this does kickoff this weekend and drag on for maybe more than a couple of days or weeks . I think if it goes on for, lets say, more than five or six days, then youre going to start to see a lot of the problems weve seen in the past when there have been Government Shutdowns and you start to see traffic slowing down at the busier hubs or tsa agents not showing up for their jobs because theyre not being paid. I think theres a real potential for that. Phil, thank you. We appreciate it. Well let you go. A busy day. Phil lebeau covering that for us. What do all of these strikes mean for the markets . We have our guest host for the hour. Welcome to you. Ron is here with us, cnbc analyst, chief Market Strategist at dynasty financial partners. Who wants it . What do you think . What do you think . I mean, i think short term, its a waitandsee. But as this extends, you have a lot of headwinds going on. Think about the people who arent getting paid and they have student loans. Oil prices are higher. Do i need to go to work . Saving rates are going down. All of that starts building on each other. You get the Multiplier Effect going into reverse. And the feds say, what data do we use anymore do you think november is out the window at this point . If one of the last reports they get was the pce this morning showing cooling core inflation, it feels like its going to add to this idea of better safe than sorry. If demand starts slowing down, youre going to have that kind of naturally fall into place. But the question then will be, you know, if the fed even starts hinting of, hey, were going cuts . The market would hate that. Theyre saying the fed is seeing something we dont see. Maybe the best bet is dont do anything. The fed itself is not part of the blackout, any information that comes from them, that apparatus keeps running. Thats a good point. If you take a look at whats happening with regard to the overall pace and backdrop, this is very much about an economy that is maybe still on solidish footing. Its not growing at a hyper pace. Maybe these strikes and shutdown issues will tap the brakes further on the economy. So what does it all mean about whether or not the markets are going to hold up relatively well given the fact that this might actually be in some perverse way a good thing for Interest Rates policy in the future . Yeah, im not so sure about that given what John Williams said today, saying higher for longer. I was going to write a piece about having gone goldilocks three months ago and facing more than three bears. That was used yesterday. We have more than three bears. We have a shutdown, we have strikes, we have the fed staying higher for longer. An economist that noted earlier this morning with net exports being revised upward, we could see Third Quarter growth near 5 . Now so many variables, so many you know, at least near term negatives that were still in the window in which from a seasonal perspective stocks are typically quite weak. I dont see that changing in the next couple of weeks. Were going to need resolution to a lot of these problems before we can make any cleareyed statements about where we go from here. Nancy was talking about the three bears before they have kind of started to materialize here. Theres been a sense that, you know, q4 might be a pothole. But if you had to say the market today selling off on the Government Shutdown s , is that buying opportunity at some point . Or do you still wait it out on the sidelines . We havent been really talking about the sidelines. Weve been talking about owning quality, shortduration treasuries over the last many months. I think a buying opportunity will emerge at some juncture and maybe its going to be, you know, a quasi crisis induced moment in the month of october. Theres a lot of other risks out there, a whole host of thing. October is a month to a bottom, and maybe the fed is not going to stay higher for longer if something that emerges that is kind of spooky. I think its you know, its a tough call here. This is not the easiest environment in which to make i think blanket statements about the economy, the direction of stocks or Interest Rates. Im cautious, you know, looking for a window in which you might want to get long. But i think its weather its nancy, dan or myself, i mean, you can count however many number of bears you want, there are a handful out there that are getting in the way of even a tradeable bounce at least for the next several weeks. And theres the risk of a downgrade from moodys if the government shuts down. Sarat, the times that weve had government issues loom and linger over the past decade and a half have come in ultra low Interest Rate environments where rates were not threatening to go higher or have gone as high as they have in a short amount of time. Does that then make this Government Shutdown showdown worse in terms of a possible Market Impact than the ones that we have seen numerous times for continuing resolutions over the course of the last decade . I think if the if the shutdown goes longer than a few days, it could be. People will move out of equities into bonds. You have another alternative now but that lowers Interest Rates. Hopefully. Probably on the short term. But that kind of plays around with the inverted yield curve as well. You could take money off the table quickly and say, hey, thats a good buying opportunity. Fundamentals are so strong. If you look at across the market, they are going to be some really good opportunities. There are opportunities today, especially when you look at how bifurcated the market it is with seven stocks leading the whole s p this year. If youre fully invested, i wouldnt panic. If you have cash on the side, youre going to see some good opportunities in the next couple of weeks. Ron, thank you very much. We appreciate it today. Still to come, robinhood ceo vlad tenev is about to join us. And a power check as we head to break. Walgreens, the second best stock on s p on reports that the company is close to naming a new ceo and carnival the worst. Wel rht eno. About thecomy lbeig back. music the walking tree is said to change its entire location in pursuit of sunlight where could reinvention take your business . Accenture. Let there be change. Welcome back to power lunch. Markets are trying to end the quarter on a high note. With all the headwinds to the shutdown, gold is growing. Our next guest has a great pulse. Here is vlad tenev, robins founder and ceo joining us from robin headquarters with our very own kate rooney. Thank you so much. Thanks so much for having us. Thanks for coming down here. Always a pleasure. Robinhood is coming up on a tenyear anniversary. This company, a lot has changed in the last two years. The macro backdrop has the changed. The company was built on the foundation of individual traders. Thats dried up in a lot of ways. How should investors think about the next ten years for robinhood and whats your game plan when really the market has changed so drastically. Well, weve always had the longterm vision not just being a trading app, but being the best place for customers to manage their finances holistically. During covid, we went through a period of exceptional growth and we were known in the press and media for individual trading. But if you look at the products and the opportunity, i think, robinhood is just very much in the beginning, theres a huge Financial Services industry that is waiting to be disrupted beyond investing and trading and youre seeing that with our entry into products like retirement where were offering a 1 match, 3 match on contributions if youre on a gold if youre a gold customer along with 4. 9 apy on uninvested cash. So these products both have allowed us to adapt to the new environment and give customers incredible value in a highrate environment while also moving robinhood along on a longterm journey of being the best place to hold all of your assets and all of your cash. Is that going to drive shareholder value. The stock is trading around 40. How are you thinking about recapturing some of that group and is it enough of an opportunity in terms of margins and getting back to the heyday of robinhood we think about when you went public. Obviously, interests have had an effect on the overall valuation picture. Not just for robinhood, but for fintech and Growth Stocks in general. Whats exciting is were very much at the beginning of the journey here. Robinhood is still only in the u. S. Were doing and we have ambitious plans to be all over the world and expand internationally as a software company, not as a brick and mortar institution. We want to build deep relationships with customers and have them trust us with their Retirement Savings and our retirement product just crossed a billion in assets. Thats pretty incredible growth in just a few months. If you look at how big the retirement industry is in the u. S. , theres tens of trillions of assets there. So as we look towards the future, we think we have barely gotten started. Robinhood has much, much more growth to do. Thank you. Yes, its kelly here. We appreciate kind of going from being the meme stock platform to helping people save for retirement is probably a service to society. So thank you. My question is about credit cards. What are your plans in this realm, how big and important a business line could this be and do you worry about getting into the business at the peak of the cycle . Were very excited about credit cards. We think thats an industry and a market that is waiting to be disrupted as well. If you look at the space right now, if you are a High Net Worth individual, someone with millions of dollars in your bank account, you actually have access to great credit. Great rewards, great perks, excellent quality cards, but for the vast majority of people, those services are inaccessible. We were proud to have acquired a company with a very, very motivated team, excellent product people and i think the dna is right for us to partner together and deliver a great robinhood credit card for customers. Im excited to show that you guys when its live. But i think weve got something very special in the works. And one of the things you look at in terms of robinhoods vision is to become more all encompassing with regard to Financial Services with all of the clients that you have out there. Is there going to be perhaps a focus on trying not to lose focus if youre going to try to branch out. I think of robinhood in some ways in terms of crypto. Weve seen that fall off quite a bit. What exactly keeps the focus at robinhood in place. I think its really two things. So when you think about a robinhood product, i think our unique differentiators in the market are use of technology which allows us to dramatically lower the cost that we offer to customers for our services . And the focus on customer experience. Robinhood was the First Financial product to win an apple design award and really introduce the id