One stock getting a big upgrade today thanks to, get this, brown shoes. Lace up, ladies and gentlemen. Power lunch starts right now. I cant get enough yeah, yeah and welcome to power lunch. Im melissa lee. Three hours left in the quarter and stocks are firmly in the green. Were just about two points off the session highs in the s p 500, which is higher by about. 9 . Financials really helping the lead, to lead the day, thanks to Deutsche Bank. Good news there potentially. Semiconductors a big standout. Theyre on pace to close out their best quarter in 13 years. I am brian sullivan. Here is what else is happening at this hour. Hurricane matthew strengthening. It is now a category 3 storm in the caribbean. It is expected to make landfall in jamaica by monday. Consumers getting a little swagger back last month. Consumer sentiment topping expectations. And your sweet tooth can celebrate. The peeps who make those marshmallow peeps going back to work. What is that sound . Dentists everywhere celebrating. Welcome, everyone. Im michelle carusocabrera. Big two hours ahead. Were going to kick it off with the massive rebound in the shares of Deutsche Bank that tyler mentioned. Shares extended their gains. Theyre now up about 14 after an afp report saying the bank is close to a 5. 4 billion settlement with the department of justice over mortgage bonds. Cnbc has not independently confirmed the report. If that report is accurate, however, that settlement number would be well below the reported 14 billion opening bid by the doj in its talks with Deutsche Bank. Meaningful in its difference. Lets get to Cnbcs Bob Pisani live on the floor of the new york stock exchange. True or not, that report, that afp report did move the markets prior to the european close at 11 00, 11 30. Look at bank of america. U. S. Bank stocks had a tough time yesterday, they had been rallying through the morning, but rallied even more after that report. You see bank of america recovering all the losses from yesterday and a little bit more, now up nearly 3 . Look at the sector, strong day overall, 3 to 1 advancing to declining stocks. Banks leading, energy also leading as oil is on the upside. Consumer staples and industrials broad swaths of the market on the upside. The end of the quarter and it has been a good one. Take a look here. Primarily it is tech driven here. Nasdaq 100, great quarter on semiconductors like invidia and micron. Small cap, russell 2000, had a good month. S p 500 that is a very respectable gain at 3. 4 . Maybe one reason were rallying is because traders like the Fourth Quarter. It is a good one traditionally. Look at our friends at kenshow. Since 1990, s p 500 up 81 of the time. S p 500 average gain, see the bottom, up 4. 5 . Health care, industrials, consumer discretionary, big swaths of the market traditionally do well. Ipo moon shot nutanix, priced at 16. That is not a typo. Trading at 34. 37, up 114 . They make computer Storage Technology that makes it easier to run corporate servers, but the bottom line, really important thing, guys, this is a flashing green light to all those tech unicorns out there, 100 or so of them valued over a billion dollars, telling them that it is safer to consider going back into the u. S. Public markets. Big day for the ipo market. Bob, thank you. Well get more on that in a bit. Right now, it is friday, around 1 00, that means the weekly rig count numbers are out and theyre up again, compared to a week ago, we added 7 Oil Drilling Rigs out there. For a total of 425, you remember the euphoria about opec and how they might cut production . America continues to ramp up production as the price continues to climb just a bit. Rig counts up 7. As bob pisani mentioned, wall street suffering from whiplash as investors closely watch the twists and turns from the Deutsche Bank scandal. Annette vicebach is live. If that number, 5. 4 billion u. S. Dollars were right, i think we would have heard from the bank already by now. Very stringent Capital Market rules here in germany, the rules say you have to act immediately as a company if the number is reported, which is actually close to the real number you are facing as a company. So at first place that was why deutsch why Bank Reported the 40 billion u. S. Dollar number. They didnt do that voluntarily. They did it because the number was out, they had to do it. If it was the case now, that number was correct, they would have to come out with that statement already by now. I guess that number is not correct, and perhaps well probably see the number, which might be a little bit lower than that number, than the 4. 5 billion euro, 4. 5 billion u. S. Dollar at least according to sources we are talking here on the ground. With that, back to you. Annette, thank you. Now lets bring in steve liesman. By the way, steve, the banks regulated in europe different than they are regulated here in the United States. That may play a role. Just to repeat what annette was talking about, under german corporate law, if you have a number that gets leaked, youre required to put that number out officially. Were almost into more of a journalism story than a banking discussion here. The story is i have to think that every minute that goes by that somebody doesnt confirm the afp story makes it perhaps less likely. We have been unable to confirm it here at cnbc. I believe miss carusocabrera, crack reporter, has been working the phones. Ive been working the phones. We cant confirm it. Did i understand her correctly, if i said there was a number out there, and i said the number i pick it out of the sky. 7. 7. And thats not close. They dont have to say anything. But if it is close, they got to Say Something . I have also been working some things and german attorneys, by the way, and heres the what annette said may be completely accurate. However, german law requires you to basically put the number out there, confirm it if it is true. So or if it is done. So if theyre still in negotiations probably still are. Deutsche bank would likely have no legal let me seat othe the other s this. Morgan stanley has put out a note to its clients talking about this number, unclear if Morgan Stanley has any but all of the movement in the stock today is 1109, the moment if you put up that intraday, it all came expost this afp story. My question as a journalist is if you want to leak the story that you have a deal, why would you put it out through the wire service of a French Wire Service . There are multiple ways you could put it out. If youre Deutsche Bank and have a deal, you have to Say Something. Right. If the number may be may end up being correct, but as i understand it, in german law if theyre just negotiating, if im buying your home and basically i say i offer you x, and you say, sounds good, but we havent finalized anything, under german law, i dont believe they have a legal requirement to report that. But if we signed the papers, then they might have to confirm it as i understand it from an attorney who deals with german m a transactions. They had to Say Something about the 14 and thats clearly not a done number, so maybe theyre thinking the converse on this case. I want to switch roles here. What do you think about this number here . This number . I have no idea. I think i think 14 billion is not going to happen. I think thats not going to happen. I think it will be far lower. 5. 3. Putting you on the spot. Thats a number tossed around as something that could be acceptable. Exactly. They have that set aside. Convenient for me. The number is almost the same. I hate to dis this number and have it be right. I dont have any independent confirmation either way. But i would also say the report was leaked after the shares closed in germany. Want to have an impact on the stock, do it when the liquidity is out of the market and only talking about trading want it to hit the stock and in a big way. I had conversations with people where they say, if youre the doj, you dont want to be the thing that brings down Deutsche Bank. You calculate how far can i go without forcing a massive capital raise, and what number you get to around 5 the doj comes in at the number they already reserved for it. They paid out 5 billion in euros dividends. You were exact i think your point was exactly right. What the stock is moving on is really a journalism story and for the viewers and listeners out there, think about how this might work. Somebody has a relationship with somebody high up, Deutsche Bank, doj, pressing on the person who says i dont know, 5. 5 billion, throws it out there, nothing is finalized. Could be somebody high in the french government. This is all very political over there as well. And here too. Can we go macro for one second. We have to go. I prepared this beautiful chart i want to talk about. Excellent. What you see is a red line. The red line is the minimum amount of capital that a u. S. Bank relative to its assets that it can have after youve been stressed. That number is 4 . You will notice that the yellow line is the same amount for European Banks. So European Bank currently meets the minimum stress amount required by the fed. One reason we have this entire conversation is because u. S. Regulators did one thing early on, they forced u. S. Banks to take a hit to equity, to their shareholders, and the European Banks did not do so much. Thats why were here having this conversation. The reason europens did that, they thought that the european economy would grow, the banking earnings would grow, they could retain the earnings, wouldnt have to. They were wrong. A little bit of fun history for me this all grew out of the t. A. R. P. , when they bought out the government stake that they took when they gave money in t. A. R. P. , they raised equity, forced to do it so all of this early action, it goes back to the history of this thing, anybody who did something early and quickly and forcefully won and anybody who delayed is still in 2016, dealing with questions like this. Good point. Steve, thanks. Thank you. It is a swing state showdown with just 38 days left before the election. Our Andrew Ross Sorkin is in one of the states that will play a pivotal role in the election. Andrew . Yes. We are at java joes in des moines, iowa. Six electoral votes, pivotal votes are up for grabs in this battleground state. And, of course, agriculture in this state is the big issue. We sat down with some farmers and were going to show you a little bit of that in just a moment when power lunch returns. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Announcer dont let salmonella get funky with your chicken. On average, one in 6 americans will get a foodborne illness this year. So, learn the right temperature to cook each type of meat. Keep your family safe at foodsafety. Gov. Welcome back to power lunch. It is a swing state showdown with just 38 days before the election. Hillary clinton stumping in florida. Donald trump in michigan following yesterdays quick visit to iowa. And while the Hawkeye State carries six electoral votes, it punches well above its weight when it comes to president ial politics. Andrew ross sorkin has more. Reporter every four years iowas corn fields become battlefields for president ial campaigns. 2016 is no different. Early voting began thursday and the rest of the country is looking to the Hawkeye State, voted democratic in five out of six past president ial races. Iowa didnt gain its bellwether status because it is representative of the rest of the country. According to the census bureau, the pop ration is moulation is white. Candidates shift their focus to agriculture while campaigning here. And especially on the trillion dollar farm bill. Trade, another hot issue for iowas farmers. Many support the transpacific partnership, which the American Farm bureau says would increase net farm income. Both president ial hopefuls have called into question. Immigration policy will likely have a huge impact on agriculture. Iowa farmers also have their eyes on wind tax credits. The Environmental Protection agency, and estate taxes. Andrew joins us now from des moines, iowa. Mrs. Clinton was there earlier in the week. Said mr. Trump was there. That state, as you point out, has gone democratic in most of the most recent elections. Mrs. Clinton was leading middle of the summer in the state, but the last things ive seen is that trump may have a slight edge. Trump does look like he has a slight edge. 5 to 7 points depending what poll you look at. As you mentioned, theyre all coming here. Hillary clinton on my flight in, she was flying out, mike pence was here over the weekend, tim kaine was here prior. So they are trying to work this state over and swing it in their direction. We spent some time with some farmers, though, yesterday, to really try to get a pulse on what theyre thinking about. As we mentioned earlier, trade was their big issue. Listen to what they were talking about. One of the important issues for us is getting more trade. Agriculture is one of the things that has the most to gain from tpp. And were starting on a price of prices are all headed down now. Were in less than half. And thats kind of a scary thing when you think about the future. We need more export. They both said they said that, you know, both candidates are against the tpp, but that donald trump is more against the tpp. One of the other issues that came up was taxes and in this town, estate taxes matter. Listen to this. Being taxed to death is no way to grow an economy. It is like if i wore stiletto heels to the corn field, doesnt make any sense. We need to have serious conversations about what are we going to do about this tax policy run amok. We should note, big difference between the way some people in the rural areas feel relative to the cities in des moines. No doubt this may be Hillary Clinton territory. That may be donald trump territory. The one thing i want to note, despite the talk of policy and issues, it is an issue where it may come down to personal ty. So many of them talked about that. And so many other what i might describe as closet trump people. You go up to them with a camera, theyll talk about the issues, they dont want to talk about who theyre voting for. Camera goes off, they say trump. So kind of interesting just to be thats a phenomenon that is at play in lots of places around the country. I think thats a phenomenon thats in play in lots of places, that people, when the camera is on them, they dont want to say maybe what the pollster calls. And when the pollster calls, they wont anser. This happened in the united kingdom. People didnt want to admit they were a tory or favor the party of margaret thatcher. You wonder how accurate the polls could be now. I did find one person who was a closet Hillary Clinton person, but it is interesting how this is so polarizing that certain people dont want to say either way. There is early voting that is already started. Are there actually polling places. Just started yesterday. We may have this is it. This is it right here. This is the sample. Started yesterday. This is the ballot. Hillary clinton at the top. Got to go further down to find gary johnson and then some names we never even talked about on the air before. Who are running for president. Who are running for president. Who are running for president. Interesting. Yeah. Ready for this. Gloria riva. Oh, galore. I was going after andrew in the commercial break. I said get out and see the world. There is a lot more between new york and l. A. And there he is. There he is in iowa. You have this big tour going. Where are you going next . So next week were going to be in jacksonville, florida. The week after were going to be in arizona. Then were still up for grabs. We have a couple of weeks before the election. Were going to pick them depending how close we can find a battleground state. One comment, one suggestion. Jacksonville, florida, shockingly, largest city in the United States geographically. Who knew. Yes. Number two, dayton, ohio. I was born in dayton, ohio. Were you really . Yes. Did not know that. My wife was homecoming queen in oak wood high school, but also a city that has a military base that has been hurt, right, patterson, ncr National Cash register, how about dayton, ohio, battleground state, salt of the earth. Dorothy lane grocery best brownries. Our producer is giving you the thumbs up. You were born in dayton, ohio. I feel pretty cognitive right now. Half of all credit cards have a chip. So why arent they more prepared to accept them . We have that story straight ahead. The conference call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. It is hard to believe it already has been a year, not since brangelina, a year since the mass migration to credit card chips has rolled out. That rollout has far from gone perfectly, though, half of all credit cards now contain a chip, only one third of retailers are prepared to accept them. Cnbc contributor Contessa Brewer joining us now with more on the transition. It is Pretty Amazing that roughly 2 million retailers upgraded their credit card terminals and are accepting the cards. Thats short for euro pay mastercard, visa. Those cards have a tiny microprocessor that communicates with the card termina