Transcripts For CNBC Power 20240703

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 idea that user centric design had a place in the Financial Services industry and youve seen that in our stocktrading products. Youve seen that thread in crypto, youre seeing it with retirement. Retirement before robinhood, it was inconceivable to get a built in match in an ira product. You only heard about those types of things in 401ks, i think robinhood is in the best position to take advantage of the tail wind of Technology User experience to deliver great products to customers. Weve seen a boom in options trading among retail investors. What impact do you expect that to have and when will you have the options and derivatives side going and up to speed . I wonder what youre seeing in terms of the appetite for derivative and is options which signifies risktaking. How are you positioning there and what does that say about the individual trader . A big part of our offering is serving active traders, so, of course, were serving individual investors and novice investors with our stock trading and retirement offerings. But if you look at kind of the value of low costs and zero fee per contract options trades, thats very unique in the market. So you have all of these people that are extremely sophisticated and are blowing these hedging strategies for whom paying 65 cents a contract at, you know, a brick and mortar competitive is palatable. Its a significant amount of money, thats 65 for that trade. Being able to save that i think has led to robinhood and a relatively short amount of time being one of the largest options brokers and option trading platforms out there. So serving our active traders is definitely an important group. Its really where we can test out some of the we can push the frontiers of innovation in investing and trading. You can see that more recently with 24hour market. Robinhood became the first brokerage to offer 24hour trading of individualnamed stocks in the u. S. Now were up to close to 100 stocks and we would like for our active traders to actually make it clear that if youre not using robinhood, you would actually be at a disadvantage because you wouldnt be able to manage your risk as effectively on another platform. Things happen after hours. And to be able to respond to them and effectively manage your risk is a huge differentiator that you wont be able to find on other platforms. Having to trade east coast hours. You have not seen dumb money, is that right . I have not seen dumb money yet. Do you have plans . Im very busy, actually, doing work here, so its hard to find time to see movies. Im sure ill see it at some point and hopefully some of it is true. Fair enough. Well leave it there. Ill send it back to you. All right. Vlad tenev, thank you very much. Great interview. Coming up on the show, well get the latest on the bond market after a key measure of inflation is easing. A ryder cup, a new bidder emerges and sarat is here, of course. Three good reasons to talk about golf. Well be right back after this. Announcer the ryder cup leaderboard is sponsored by wag near. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire the bond report is brought to you by pimco. Welcome back, the tenyear treasury yield pulling back from the 15year highs today after the core pce showing some signs of easing. How significant is it . Lets ask rick santelli. Hi, kelly. Ive been reading all the articles and listening to all the fed speak and granted if you look at month over month pce core deflator, it was up 110. You can draw some optimistic lower inflation conclusions. But im looking at this chart. This is a tenyear chart of the year over year number which for the First Time Since september of 2021 is below 3 . I still look at this chart and see were nowhere near 2 and i still dont think theres any guarantees were going to get anywhere near 2 . So i look at that chart and say weve made progress and now many are going to look at that and the lightbulb is going to go on. Hold higher for longer to see if we can bring that chart to where it was precovid. But i still have questions whether we can and when i know that its a core number, i think as we discussed this morning, that many things flow in from other parts like energy into the rest of the economy that will be included in core. 468 yesterday, highest since 2007. But we have reversed. Theres a lot of technicians that think we put in a shortterm top here. Yesterday, shy of 3 . Thats the highest since 2011. Now lets look overseas a little farther. Has anybody out there realized they closed today at the tenyear highest yield . That still didnt help in the end. You would think the dollar getting strong as our rates continue to go up. But the dollar yen is hovering around that 149 and change. It gets much above 150, youll look at the weakest yen in 33 years. Wow, i hope japan is not, once again, atemplate for the rest of us. Thank you. Lets get over to Courtney Reagan for the cnbc news update. Police in pakistan say 60 people were killed today at suicide bombings at two mosques. The bombings took place in two provinces that have been the target of islamic militants in recent years. President biden honored the outgoing joint chiefs of staff mark milley at a ceremony today. He took a veiled shot at former President Donald Trump saying troops do not want to take an oath to, quote, a wannabe dictator. The comment came just days after trump suggested on social media milley should be put to death. A navy is about to start randomly testing its special forces including navy s. E. A. L. S. Four units will be selected each month and 15 of each will be tested in november. The army said it will soon follow suit. Kelly, back over to you. Thank you very much. Still to come on power lunch, the final stop on our real estate tour across the country. We visit the most expensive market in america. Oh, yes, san jose. And weve picked up a hitchhiker. Well find out what a Million Dollars buys in the heart of silicon valley. Weve got two hitchhikers. Weve got dom and sarat. Welcome back. Its the final day of our powerhouse road trip. Getting an indepth look at whats happening in different housing markets around the country including just how far a Million Dollar budget goes. Yesterday we were in albuquerque, a Million Dollars goes far there. Were heading out to san jose where not so much. Its number 37 of the top 100 metro areas by size. And dom chu is along for the ride. Prices are up 5 with the median home price of near 1 1 2 Million Dollars according to zillow. Here to tell us more is anna fine of cold well banker. Its good to have you here. Thank you. My understanding is that the market has firmed up somewhat, is that right . That is correct. We had a little bit of a downturn in the end of 2022 as the rates continue to rise. But starting this year, it seems like were back where we were and it looks buyers just got used to the new rate and we are back at supercompetitive market and a strong sellers market. So now okay, lets talk about the strong stuff. Million and a half dollars at an 8 mortgage equals what per month, exactly . How are people really financing or affording these homes . So i have to mention that our market is unique in many aspects but one of the unique aspects of our buyers here is that they are highly stimulated by the stock market. If the stock market is performing well, we have more buyers and theyre able to afford high Monthly Payments. We see people with 20 or more towards down payments. We do see a lot of cash buyers as well. So people can still afford i guess most of the buyers are in Tech Industry and their income tends to be higher. So it is still an option for them. So when you look at houses being sold, is there a difference that youre seeing when Interest Rates are low when people are saying this is going to be contingent on a mortgage and not, are they taking out fixed rates or much more variable now . People are taking fixed rates. It varies. I dont see any specific tendency. As i said, were not as much stimulated by the Interest Rate as more of a you know, what is the stock market doing. Yes, the market is still competitive and we see multiple offers but its not as much as we saw before the Interest Rate increase. Before the Interest Rate increase, we sought 20 offers on one home noncontingent. Today were seeing two to five offers. And most of the times contingencies are waived fully. Anna, the reason why im hitchhiking is because im a Northern California native. I was born and raised in the bay area. Please take us through what the, quote unquote, Million Dollar home looks like in san jose, california, today. 1 million, not going to buy you much here. It will be very tough to find a Single Family home for 1 million. This home, for example, that we see right now was sold for 1. 64. This is a pretty average home, 1300 square foot. Was built in 60s. Pretty standard. Nothing special. It is not a luxury home. It is very modest. Average family home. So, yeah, Million Dollars probably will get you a modest townhome. How many bathrooms . 1. 7 million for 1300 square feet. Thats right. Is this the top, anna . Can it go up from here . This is really got to be it. Well, i have to say, we still saw prices increase. This home was sold in may and since then, we still saw a little bit of price increase even when the rates continue to rise. The demand remains very, very strong and we have with a lot of people who want to live here. Anna fine with the state of play in the bay Area Real Estate market. Thank you very much for wrapping up our road trip across america. Thank you, thank you for having me. Weve got a lot to talk about here. Oh, boy, dont we. Well look back at all of the housing markets this week and r urg you can get the most ban foyo buck in this highrate environment. Its all coming up right here. Your record label is taking off. But so is your sound engineer. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire all right, welcome back, everybody. Now that weve been around the country on our powerhouse road show talking to realtors about their local markets, lets recap what we learned about what the money really gets you in real estate these days. Our first up was poughkeepsie, new york, 750,000 bought us a beautiful property. 3100 square feet. Four bedrooms, 2 1 2 baths. Seemed enticing. We headed out to dayton, ohio, your money goes a little bit further. 1. 2, twice the house. 6,000 square feet. Five bed, four bath. A little different as we headed down to dallas. The fourth largest market in the country where almost 1 million gets you a townhome. 2300 square feet. And right in downtown dallas. So in albuquerque, new mexico, we saw a 1. 4 million house, 3600 square feet, four bedrooms, four baths, but compared to our dallas townhome, this one was 2. 5 in terms of the acre lot that we saw sitting on it. Thats big. And we just heard our last stop was in san jose for 1. 64 million, you get three bedrooms, three baths and 1300 square feet. Two bedrooms. Lets compare apples to apples. Here is the price per square foot for these five houses our realtors showed us. You can see dayton, poughkeepsie, 236 a square foot. Dallas and albuquerque even. But the lot size in albuquerque had a lot to do with that. 400 a square foot. In san jose, 1,200 a square foot. Which one would you rather . As a Value Investor . Im not sure you want to go to san jose. That wraps in with what you think do you really think google is going to deflate . Its hard to fathom. We have to go back to when you get these crises, 1999 when everybody thought the tech stocks were going to come down, financial youre sustaining these at, like you said, almost 8 . So there are a couple things to watch here. I think, you know, maybe you get the isolated bubbles like san jose, but the rest of the country when you get all of these arms coming up when People Finance in the last three years at 2 1 2 to 3. 5 , its triple what that is. So your Monthly Payment is going to be, you know, almost triple at that point. And then youre going to reset at that point. I mean, to your point credit cards, were at the tail end from there. Where are jobs going to go from there. Youre going to have to watch and see what does credit look like and what is it going to be lending . Those are all very objective ways to look at it. When i was growing up out in the bay area in california, the prevailing conventional wisdom was, you went out there, paid the cost of living, paid the higher relative taxes for the lifestyle and the weather so to speak. I say that tongue in cheek. Its a great part of the country. Its beautiful. The weather is relatively nice and everything else. Youve got ton a point where some people may be making a choice. Even target, three of the nine metro areas where theyre Closing Stores due to theft, seattle, that metropolitan area, portland and san francisco. So there are choices being made at some point down the line by people about whether or not its still worth it to live in a place like california. Absolutely. And what does that tell you about the longterm kind of prospects for real estate in some of these areas. As you start getting more sellers and buyers over time, thats just going to put downward trend on housing prices. You have to be careful. And new homes getting built, people want to do that. During covid, you saw the big migration down south. Thats not stopping. People are still moving to florida, taxes are important. Your state, you know, almost like new york city. 14 . So over time if Interest Rates stay where they are, i think you just have to be careful that when you look at a home, youre not just saying im doing this for investment 2. 5 , you have te careful when you look at a home, youre not just saying im doing this for Investment Purposes only. For sure. For sure. Coming up on the show, well get the read on the customer slowdown were seeing out there. Power lunch is back after this break. Safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. Today is the last trading day before the Fourth Quarter when Electronics Companies need shoppers to open their wallets. Jon fortt brings up close and personal with ceos whose companies products eliminate as much buzz as they create and this name has been synonymous with audiophiles for a lot of years. It sure has. Liza snyder is the ceo of bose, the company will be 60 years old next year and snyder has been retooling the company for the post covid digital era, speeding up product development. Snyder, a mechanical engineer, is used to getting under the hood and making hanges. I grew up in a house where we tinkered with things, we fixed things, my sister and i would learn from my dad how to do all of those things and it was a natural curiosity and interest in how things work and a love of math and science that came all together to become engineer. My sister is a mechanical engineer and so am i. Nice. What were you fixing . What was your dad most interested in tinkering with that he also shared with you . A lot of cars. We definitely knew how to do all the basic maintenance on your car i can do. And, you know, a lot of Car Restoration and, you know, but also fix ing ing the washing ma and putting new siding on the house. Now bose is continuing its expansion from noise canceling headphones to earbuds with new technology that places instruments in virtual space around you, surrounding you if youre stationary or staying ahead of you if youre moving. To compete with apple, google, amazon and others, snyder says bose has to move fast. How to we increase the rate and pace of getting innovation out of our labs and into the hands of customers . I think youre seeing that from us. Just a year ago, we launched our quiet comfort earbuds two and were here two months later talking about a new product in the earbuds space that replaces that one and brings new and exciting technology. And so that pace of change and the pace of bringing new innovation to the market is a real focus. She just unveiled new products in new york this month. Q4 is the test with questions about the consumers spending power. Liza told me the high end consumer has been holding up, though. The earbuds are in the 250 to 300 range, with apples airpods. So well see. It is not a shock. A staple of they are. Give her credit. To survive in this competitive marketplace, you know . No small feat. Interesting company too in that it is owned by m. I. T. The company is . The company is owned by the Massachusetts Institute of technology. No kidding, wow. For all the Different Things they incubated, didnt think bose was one ty hehung on to. Thank you for that interview. There is still time left in the show and were going to use it to talk golf. Thats coming up next in closing time coming up. New projects means new project managers. You need to hire. I need indeed. Indeed you do. When you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. Visit indeed. Com hire and get started today. upbeat music awww. Awww. Awww. Nope. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. The ryder cup getting under way this morning and the u. S. Is digging itself a huge hole, to say the very least. In other news, endeavor group fenway sports reportedly considering a bid for the pga which would prevent it from having to merge with the liv golf tour. Is golf in a good place right now . The ryder cup, it is tough. It is tough. The last time we won on european soil was 1993. Listen, we have seen things happen, we got 1 1 2 points. Interesting to see, singles play is where were really strong. I think dont count it out, but it is going to be a long you to tune into nbc, nbc sports, golf channel, peacock for all of this. Were the ones showing the ryder cup. And nothing else to do this weekend. Were all going to be stuck here with the flooding. Lots of sports to watch. Yes, indeed. Actually, speaking of which, lets take one more look at the taylor swift effect. Maybe call it the new taylor rule, hmm . Seat geek reporting a 26 surge in the average resale ticket price for sunday nights game between the jets and chiefs and you can guess why. Why . On reports that taylor will attend the game. The only thing new york fans have to be excited about. The biggest media market in the u. S. Probably the world and taylor swift and the chiefs and the jets are all converging. By the way, it is a sunday night Football Game on nbc, chiefs and jets, primetime. Ratings through the roof. Youre probably right. It is so absurd. I mean, i hope im fascinated by it. Im waiting for more of the products that come from this. Like the heinz ketchup thank you for watching power lunch. Closing bell starts right now. Welcome to closing bell. Im scott wapner live from post nine at the new york stock exchange. Busy friday, make or break hour begins with news that is new on closing bell, on the record comments from Hedge Fund Legend david tepper. I spoke to him this afternoon about the markets as a dismal month of september comes to a close. He told me the following about how he sees the markets right now. Rates are rising, stocks are jittery. Tepper telling me, quote, not that complicated right