Closing Bell Overtime: Keith Rabois On 2024 Election, Chamber of Commerce CEO On Business On The Ballot; Super Micro Troubles 11/05/24
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Cnbc has quick and easy to understand business news updates at the open midday and close every weekday markets, money and more from wall street to main street. I'm cnbc Jessica, adding to follow and listen to C, N, B, C. Business news updates wherever you get your podcasts.

that kind of regulation jenk shipping and trading ring closing above the new york's stock exchange ange rental rise holding limited doing the honors of the nazi socks ring with major avoid es keeping up their tradition of gains on a presidential election day. We've got three hours until the first polls closed, just one hour to go until we start getting initial exit polling data. That is the score, Carter and wall sty.

But the actions just getting started. Welcome to closing bell over time. I work and brand in john ford is oft today, we will be all over the election this hour with the issues that matter most to your money coming up.

Outspoken venture capital key thr boy joins us with his closing thoughts on the race and the impact on a tech and investing plus chAmber of commerce. C E. O Susan Clark will be with us to talk about the business issues on the ballot from taxes and terrorists to A I regulation.

And it's not just election season. It's still also earning season. We've got some key reports coming this hour, including super micro o devon energy, microchip and A I darling recent AI darling lumen as we await those earnings.

So let's bring an unlimited CEO bob elliot and vital knowledge founder adam crip. Fully guys, great to have you here, especially as we do have large gains for all of the major averages. Bob, i'm going to start with you how much hinges on this election now and the various outcomes we could see in coming days.

I think we're going to see a lot of mark volatility coming through with this election given the divergences in the policy stances from both candidates. In the really interesting question is whether the conventional wisdom that a republican Victory and sweep will be beneficial for stocks given their policy position. Some of the indications today, with bonds Bonnie's coming down a little bit and stocks ranging at the same time, suggest that maybe people think a that split government with a Harris administration might actually be Better for the economy and stocks then than the conventional system.

Yeah, I been hearing that in this whole idea of cell bones that's part of the so called trump trade. As IT as it's being perceived. I am want to get your thoughts on this, especially as we do see a stock market that is arguably Price to perfection here. And we have seen some a lot of the volt tied to the election actually in the bond market. No.

as I think the election is going to influence market in two key ways. Um you know I think directly bonds care much more than the equity is to how things shake out, just given that as the proteins of the economy, the policy differences are most dramatic on fiscal policy. And so like you just said, the contrary, if you see a red wave, fiscal implications of that are um would be very negative and that I would drive the tire.

And so if you do see splay a Harris splay with Harris winning and the republic is controlling at least the senate, I think you'll see a bit really bring bonds which translate into gains quality couple with this getting the election out the way. Referring from a lot companies of the last several weeks on earnings calls about how electron certainty has played a role in kind of softening demand in certain cat hours of products over the last few weeks and just getting out the way. Having any result known will be a relief for the market for this element.

And if we do see is what outcome. Um ideally, haris, my house that I think within the help Sparky really rally bonds with to translate aqua games. And of course.

we're worn a week or attacking about the future of fiscal policy, but also the future of monetary policy would get to that in just a month because we have our first earnings report out. It's loomin technologies and the fiber and telecom company reporting in adjust the loss of thirteen cents per chases was a bit worse than estimates of nine cents per share loss revenue with three point two two billion dollars.

So I was essential in line q three adjust, but to eight hundred and ninety nine million dollars. That was light broadband. Ced describes two point six million that was largely line with estimates.

On fact that here's the folio or twenty twenty four outlook though for the company that's increasing free cash flow to one point two to one point four billion dollars. That's up from previous guidance of one to one point two billion dollars. Other m metrics, including adJusting ebitda, were reaffirmed.

Luman technologies is positioning yourself to provide connectivity to data centers. And for this, A I infrastructure built out stock has been seeing big moves this year due to that, particularly over the summer. Lemon announcing just earlier today, it's partnering with google cloud to build digital twins, support other AI efforts, adding to a growing list of partnerships that also includes amazon, microsoft and meta.

We're going na have more on lumens quarter and the outlook for A I in just a few moments when C O, K. Johnson joins me before the companies earnings call. And you can see those shares of lemon are jumping right now.

Last I checked, up six percent here over time, presumably because that free cash flow guide coming up as well, which is what happened the last quite too, bob, i'm going to come back to you because this has been the other piece of the store you saw in the markets today, the secular growth story that is A I you seen IT in semiconductors and some of the results that are continue to be by vocative, you sought with pounds. Here you're seeing you hear with luman. So with commons as well today, does that continue regardless of election outcomes?

Well, I think there's a pretty good foundation in terms of the AI trade, continue to generate pretty good free cash flow and earnings that we're seeing. And this earning quarter is really confirmed that those AI focus companies can continue to generate profits.

And and given the the role that that's playing not just in the specific names but the broader er economy that supportive to the overall earnings picture, the question is for the economy is whether that's able to branch out beyond just the AI names, the mag seven. And we start to get a lift in earnings more broadly because that's really what the market pricing in is not just the high fires, the AI names, the mag seven, they need to see earnings growth from the rest of the economy. That's what's expected.

That's what's Price in. But given the strength of the economy member, a strong um services PMI print. We continue to get strong data um across the economy. That certainly seems very possible given the strength that we're seeing in the underline.

The two thousand, one point seven percent thirty day in a row of gains, spite we've seen in other averages. We've new's alert on apple. Steve, quebec has these details for us.

Steve. Hey Morgan, this is coming out of a bloomberg report saying apple is going to face to fine in europe under the digital markets act. This is we have not firm this report, but apple is the clinic comment. This is that big law that went into full effect in europe earlier this year. That kind of gate regulate tell apple could run its APP store, allowing other APP stores onto the iphone for the very first time earlier this year.

Back in june, a under some preliminary findings that said that apple was in violation of some parts of this law, including blocking APP developers ers from including language that would steer them away to make payments outside of the upstart. They also said some of the extra fees that apple added under this law in order sort of makeup the fees they were already charging may also be in violation to those are some of the things there in table. And keep in mind, this is a really media law, Morgan, that they can find up to ten percent of the annual revenue of apple.

Just to put that in context, apple just find finished reporting its fiscal year three hundred and ninety one billion dollars. So do the math there. That is a huge fine potentially for apple on this. Again, we don't know when this is gna happen, but that sounds like the eu, according this report, would want to do IT by the end of the year. Morgan.

okay. Steve, go back. Thank you. Shares of apple trading flat right now.

Adam, want to get your thoughts as we do go into election night here. And then of course, he's got a fed later this week. We've got, uh, stimulus coming of china. Earnings continues. What's going to matter the most? And when you look at the positions in the market, what is potentially the most of sizing and could create the biggest risk if we do see some surprises here.

I think on an yields. So I think you know yields will be the real tell us to how happy will try going forward um and that will depend on you know the various property icons that we see tonight with the house and White house if we do see our sport outcome, which you know again, it's very, very close race, but that seems to be the most likely scenario um that will likely trigger very theri and bonds and you to drop and then you kind of refocus back on the president.

Micro and scapes politics aside, it's rail to be healthy. As you mentioned, you have eaten earnings also resolve growth. The distant relationship process continues. We're getting great cuts from most of the world central banks and then china is providing an extra dose similar of fiscal monetary. And so the near term you have a row to will be district microsite up heading into um a positive skin all period of the year um in the final month and a half of two thousand twenty four. So you know I think if we do get put out outcome and you get the review, you from being out the way know the backdrop is decent into the end of the year.

All right, gentleman, relieve the conversation there. Bob elliot and adam Christi, things we're kicking off the hour with me with all the major averages up more than one percent on this election day. Now spring in my tally. He is here at cbc headquarters. He's got a closer look at the market set up heading into the final moments of the twenty twenty four election.

mike. Yeah, Morgan, in some of the intermarket stuff actually kind of fun. The S M P.

Five hundred relative to gold over five years. Look at that. They basically lend roughly the same place right here. Gold is a shape shifter in terms of what IT responds to, obviously been rising to records here even as real yields have been going up, the dollars been pretty strong. Obviously, inflation has come down.

But of course, we have easy financial conditions as a lot of diversification of reserves among central banks, maybe some global unease, but do not. Always the case that they that they move together here, I would point out in particular kind of here when gold kind of lost its bid in the vicinity of the twenty twenty election. Of course, that was also we got covered vaccine coming through.

So a lot of a break in uncertain there. Then in terms of a the big movers within the equity market, take a look at uh, super micro, which of course going to hear from very soon as well as in video and X, S, D is just the equated semon ductor index. And this is only over the last year.

And you can see immediately, sm, C, I was annoying as kind of the next core play on the air investment team. And of course, because of all of its issues and regulatory static has come crashing down. But I also think this points out how the abbot semiconductor stock is up thirty percent on a one year basis.

That's basically where the S M P. Five hundred is as well. And it's really been in video and broadcom that have been uh kind of been living in the the sector as opposed to the avert semi stock. Morning ah.

this is really interesting charts. I to ask you i'm going to step back and ask you a broader election related question here. And that is how closely investors be watching the currency markets given the fact that a lot of the positioning we're seeing tied to the so called trump trades, so called haris trades as they're being reported on, really lie there. yes.

I mean, obviously, that is one of the more sensitive areas. It's gonna respond along with treasury yells. As I was saying me, a strong dollar has been an element of the triumph policy mix that people would anticipate, whether its tariffs and just sort of a general kind of expansion ary reflationary type policy set. So that's one of things you would want to look up at, man. There's so many head fakes in the market on election day, election night that I would also cautioned against people over interpreting what the market does and say that, that has a any predictive value really in the short term.

Yeah, fixes come off to coming today as well. So that's been interesting. My I will see later this hour. Thank you.

Well, after the break, coastal ventures managing director Keith boy joins us with his dogs on the surge of venture capital voices backing both presidential campaigns. And later, the C. O of human, which just reported results, breaks down the quarter ahead of the earnings call. At that stuck up around the three hundred percent this year after riding a wave of A I. Optimism over time.

is back to.

Cnbc has quick and easy to understand business news updates at the open midday and close every weekday, markets, money and more from wall street to main street. I, cnbc, Jessica, adding a follow and listen to C, C, business news updates wherever you get your podcasts.

Well, welcome back. We've got devon energy earnings out and p Stevens has the numbers. Pippa.

hey, we're going to top and bottom line beat here for dev D, E, P, S of one time, adJusting that beat by a penny revenues of four point zero two billion, ahead of the three point seven four billion that wall street was looking for. The company said that oil production during the quarter should have three hundred and thirty five thousand beards per day. That was slightly ahead of estimates.

Now during the quarter, devon also closed this acquisition of Grace and mill energy, williston base and assets, and the company called the transaction a major milestone, saying that IT increases their Operating scale and strengthens their outlook for the fourth quarter and beyond. Shares up now about two percent. Morgan.

alright, pepe, Steve, and thank you. The first polls began closing in just under three hours, and we expect to get exit polling data starting in less than one hour at five P. M.

E. stern. It's been an election marked by razor than polling margins and some big money voices backing both campaigns. Will joining me now coastal sures managing director key three boy he is supporting former president trump has high profile early investments include a firm door dash ripe key is great to have you back on the show.

Welcome should be with you.

So I ask you and start by asking the same question I asked broadly, toss yesterday, and that is IT seems like there is a lot of support, a lot of publicity, a lot of money flowing from the tech titans and the venture investors hyper file and venture investors, including yourself, into this presidential election cycle is IT more than we've seen in the past. And if so, what does IT signify about how much hinges on this election outcome? I do think it's more than ten.

fifteen, twenty years ago. I think many people attack really word interesting in politics. But if somebody also said politics is interested in us, so that sort of forced tech people to get involved in regulation policy in political locations because nobody allows tch uh to sort of innovate with the unfeeling freedom.

But historically, look about people wanted to be left alone. That's why they are on the west coast. And a lot of people politics kind of didn't notice.

H that's why innovation was fueled and flexible. But that change the last five, ten, fifteen years. So we don't really have a choice anymore.

okay. So as somebody who historically has not supported trump, you are supporting trump in this election cycle. What changed your mind? What was IT about policies or the man or something else that that brought you to the table here?

The most important driver was october er seven know when these atrocities happened in israel, el was threatened. People were murdered, raped and the current administration did nothing about IT. The current administration didn't protect jew's students on campus.

And a chartism is accounting for hate crimes locked in, right? There's basically been a show rally on every nature campus in eight states. And this administration complete the ignores what even need with your students. So as somebody group jewish went to the holo cos museum with my parents and my grandparents, it's just unacceptable to allow dues people to be threatening in the united states today. And so that alone may be change.

My opinion and what I got to meet president truman, I think there's a care to you in the media about him, and maybe there's a care to join the media about us all, but there is about him. And I saw the reality distortion that the mainstream legacy media was applied. And I really do lot of very good things about them, even though I do not supported him in two thousand sixteen. In fact, was applied him in sixteen, twenty, twenty and earlier in the primaries.

So in terms of the policies that matter most in this election, I mean, you just talked about israel and you talked about the support on the geopolitical stage. But from a tech standpoint and AI standpoint and investing or business standpoint, what matters most.

well, the Normal people, the economy, the lack of jobs, is we saw the worst job report in like decades. You, for example, when president trump ran for reelection in twenty twenty, the media highlighted that the only created four or sixty thousand jobs in his last quarter, and I was consider a major disappointment, this administration had twelve thousand jobs.

Basically, the only jobs are created the united days, days by the government, which is also, and so I think if you're a Normal person, you have to care about inflation and jobs in the future. The economy, obviously, wealthy people on tag are going to be fine, but I I do have friends, family for a Normal people, and I care about that. Secondary immigration threatens to everybody, everybody y's at rise with open bords risk for terrorism, risk for murder. And we need to stop. That is an inane policy of this administration has conscious recited to open our waters to basically the worst people in the world.

The polls have been historically wrong for a number of election cycles now or inaccurate or if he depending on which one you're looking at in the data at seta, we just talk we open up this conversation talking about the fact that the initial data the initial exit polling data is going to start at the top of the next hour. We also know that typically tends to be inaccurate or can create head fakes.

But what's new about this election cycle are you bleed to me, is the fact that you have prediction markets in a bigger and much more meaningful way. And we've seen that have an impact on financial markets to coming into tonight. I just want to get your thoughts on the role that's playing and whether that's a role that continues to grow and expand, especially since there have been calls about manipulation and quidd and and the distortions we've seen there.

Ah I think the future of prediction Marks is quite exciting. And four years, there will be enough liquidity that they are very valid parameters. What's going on and what's not going on this year?

I think the liquidity is a little below where you want to see IT to, for example. I don't really look at the prediction markets. I think they're too influences by some individual right now for given another five ten x twenty accident quidd.

I think going to be the reason of crowds is very real. I look at things like there's have a big coin trading or coin basis stock Price, which are very liquid instruments. And you know they have very strong perspectives in the cypher to world about what's going to happen under a trump administration verses, you know if she's relocated. And so I look at those this series liquidity there, but I I think that they're probably too illiquid to really over rotate on IT is the latest odds, latest probabilities is moving keys for boy.

great to have you on. Thanks for joining me.

We've got super micro .

earnings out and see mmi has the number sima more than these are preliminary .

first quarter results and q two guidance list, all with the guidance because that seems to be what is moving the stock here. And over time, IT sees its second quarter adJusting E P, S of fifty six to sixty five cents, which is well below the wall three estimate of eighty three cents, uh, so a big out theirs revenue for the second quarter IT sees in the range of five point five billion to six point one billion that to below whilst y forecast of six point eight six billion.

If we look at of the range that is providing for the first quarter, uh, earnings of seven fly to seventy six cents. That sort of in line with what while he was predicting revenge five point nine to six, uh, versus the six point four five billion dollar estimates. So clearly numbers they are not looking great for a super micro as IT deals with these regulatory concerns.

And on that Morgana, following a three months investigation, the company says, which was LED by independent council, the committee's investigation today has found that the the committee has acted independently and that there is no evidence of fraud or misconduct. The company also, as that at this time, IT remains unable to predict when the companies ten k will be filed, will have more on this story as we watch shares fall here by one eight percent I in over time. Of course, the larger story here is, uh, it's done about seventy percent from its recent high hit back in march. Morgan.

so what is gona matter more on the conference call then for this name is, is going to be the actual fundamentals of this company? Or is that going to be the fact that we still don't have any timely on that ten k? And obviously, there's a lot of controversy and financial question Marks that have been swarmed in part, I think, causing that seventy percent dropped from the highs. absolutely. I mean.

since those accounting allegations were surfaced by hindon burg and research back in August, we've seen the stock move lower and course has been reports of j probe.

So I think investors want clarity on the call tonight at five pm, easter Morgan on has the company been able to secure new auditor since urson Young pulled out as the companies the auditor? And how are these regulatory concerns and accounting concerns impacting the companies ability to fulfill new orders? Now just looking at the second quarter guidance, a well below what what to is expecting. So how much is that tie to these accounting concerns and also uh, the risk of a potential delisting if the company's not able to secure an auditor and meet the compliance requirements of the aztec, by november sixteen， there are concerns that the company will have to deal list a lot coming .

up hour yeah course, all the family ties across businesses that are connected to super micro as well. It's quite the went to untangle see method. Thank you. We have much more on the election ahead, including a conversation with chAmber of commerce C. E. O Susan Clark on the biest issues at stake for business and be sure to keep IT on C N B C all night for end up analysis of the election with the biggest thought leaders on wall street and beyond that special average kicking off at seven pm e turn and after the break the C O of lumen technologies, which has surged three hundred percent this year as an A I, play and break down earnings results in a new partnership with google as those shares now turn lower by seven percent.

Cnbc has quick and easy to understand business news updates at the open midday and close every weekday. Markets, money and more from wall street to main street. I'm cnbc Jessica, adding to follow and listen to C, N, B, C. Business news updates wherever you get your podcasts.

Welcome back. Shares of lemon technology is turning lower after initial pop and over time after reporting earnings and increasing the free cash flow guidance for the full year, the company also announcing a new partnership with google cloud over today, I spoke with luman CEO, kate Johnson and an sive interview today, and I asked her about the quarter and the company's ongoing AI driven transformation.

The big story is that big tech is choosing lemon to build out the trusted network to be the trusted network for ai. They're asking us to expand the internet at large to support growth and AI and net ks of yesterday. They just started fast enough. They're not big enough, they're not smart enough, they're not secure enough and luminous fixing all of that. And that's what we're talking about today.

okay. So talk to me about what that means in terms of a deal flow. This morning, you announced to a deal with google cloud. What is that bring to the table?

So all three clouds now have come to the table to go long and partnerships with us. It's super exciting business. Eight and half billion dollars worth of deals just in the past two earnings cycles to ask us to partner with them to build out network to support their AI ambitions.

So last time you and I SAT down was after your last earnings, and you had disclosed five billion dollars in sign deals and other seven billion dollars potentially in the pipeline. Since then, we've seen a number of press releases go out. Um we are disclosing some of those customers and some of these deals and partnerships. So where do you stand in that with that pipeline now? Um how much new deal flow have you seen since then?

So more than three billion new deal flows since we talked last time, the first five providing ample liquidity to fund our transformation. So we're self funding now. This next trunk of deals, the three billion, provides us enough cash to start to deliver the company.

So we're investing in the future, redefining what networking looks like, not just for these hyper scales, but for enterprises as well. They need to be able to consume network services in a fundamentally different way. They wanted to be easy, quick, secure, effortless, and that's what .

we're building. We just had pantier report earnings and AI driving such strong growth at that company. And what's notable about IT is it's software, it's the application layer. And so IT IT starts to, I guess, raise questions about how quickly we now start to see adoption in this next pes. Beyond the infrastructure built out, what are you seeing?

So we think there three phases. The first phase are the big software companies, whether social platforms, the hyper scale cloud companies, they're all building and training AI models. They're seeing the data flows and they're recognizing that the network is not sufficient.

It's a race for band with. And again, they're coming illumine to say help us expand the networks but also help us make IT easier to consume. And the second phase, we're starting to see you little signals from the enterprises as well.

They're starting to consume those those AI models. They are using them and saying, wow, we need to upgrade our networks too. And so working increases in demand for our higher capacity services from those enterprises face, one, the hyper scale, building out the infrastructure phase to enterprises using the higher capacity services. We think there's a third phase on the horizon, which is when A I arts like an A I and the data volume, we think will go up a parabola. What do election .

outcomes remember for the entire conversation?

Look, we are publicly traded company either. Either outcome of today's election we're prepared for. We think about terrorists, we think about taxes, we think about regulations. I think what we want most is to ensure that we can continue to be fast and Angel, and those are the outcomes that we're preparing for and staying close to IT.

Does the A I secular growth story continue to matter what the election brings?

So I think the A I story is a multiyear cade story. I mean, we're critical infrastructure and these deals and partnerships that we hide with the hyperscore ales are multiple cade in nature. So yeah, this is a long game for sure. Anything short term is is simply that lemon is very much .

a company in the midst of a major transformation. Its legacy business provides boys broadband, other services to businesses and residential customers that has been on the decline. AI is now providing this new opportunity and realization for its fiber networks as Johnson in the CEO is building out and creating a digital layer on top of those networks and cloudy fine fiber.

So it's one to watch and speaks to the massive moves we've seen the stock. As investors have clouds to that AI infrastructure transformation story can see shares iluma are down one and half percent right now. Well, microchip earnings are out and seema mody has those numbers .

sima cording. Numbers here are forty six cents, suggested Morgan on revenues of one point once six billion, not comparable because numbers were positively impacted by a third point three million dollar legal tim, a weak third quarter guidance that perhaps why she's moving by as much as five percent lower and over time, C. E O. Gania mothy says it's navigating through an inventory correction that's occurring in the mist of macro weakness, accentuated by heighten weakness in europe. And he calls out two industries, specifically industrial and automotive.

of Morgan. We've heard this before. We have thank you. What time now for a sea nbc news update with pepper Steven, pippa.

hey, more you. In a briefing today, the cyber security and infrastructure security agency said most of the issues at polling places today were, quote, largely expected, including as ballot printing errors and technical glitches. The agency also noted that was not tracking any significant incidents and nationwide that would impact election security.

Meanwhile, the FBI said the bomb threats at pulling places in several states came from russian email domains, but the threats were determined to be an incredible while the agency did not identify which states received the threats, Georgeous secretary of states said earlier today, the state received several that came from russia. And rudy Julian, I showed up outside former president Donald trump ling place in florida in a car he was told to surrender to two election workers he defined. A judge ordered rudy Juliane to appear in court thursday after he missed a deadline to turn over his possessions in his one hundred and forty eight million dollar defamation judgment, which includes the thousand nine hundred and eighty more cities bans previously owned by actress laun bo Morgan.

Help you and thank you up next much more on super micro earnings, sell up mix and toe gives us mistake on that disappointing guidance ance and later chAmber of commerce T O. Susan Clark on what he says is the single most important business issue the next administration will face on day one.

We have an earnings learn on exact sciences and jelly boston has details.

Julia shares the exact sciences the maker of cancer screening tests are planning, now down twenty eight percent after the company reported a revenue miss and cut its full year guidance. The companies and loss of one sense per share was right in line with expectations. Revenue of seven hundred nine million dollars short of estimates of seven hundred and eighteen million dollars. The company also cut its guidance for full year revenue as well as full year adjusted earnings, and you see shares now still down around twenty eight percent. Morgan.

all right, Julia, thank you. Huge move. Well, let's get another check on super mica because that stock is falling as well. After giving soft guidance, I send told joins us now with his take treasure down nine percent, which is on top of all the other big moves lower we've seen in the exactly .

some seventy five percent of its now the company said, of course, the actual revenue and the guide in somebody have a short for versus estimates that not the big story um they did say the internal investigation is no signs of fraud by the border management but it's kind of a trios Operation from here, right? You have to file that overdue ten k you have to obviously avoid delisting by the stack.

And then a secondarily to that is, remember that went into the sp five hundred is like two quarters ago. C I did. And if IT doesn't, if IT stays in there, fine.

If IT doesn't, I don't know. Fifteen, seventeen percent of the stock is held by the index fun. So there's a lot to get through.

That thing said, I think for me, for an investors, you look at what's real in terms of the revenue and the earnings power because right now, estimates are three books for this fiscal year and earnings, four books next year. It's a twenty five dollars stocks right now. IT wouldn't not trade here if anybody thinks those earnings are close to being what the real business is producing.

You can argue that the number of these companies that I realized, super micro, very specific story we were talking about, accounting issues, other possible conflicts of interested sara. But I look at lumen of three hundred percent this year. I mean, you look at pounds here, which has been a huge high flier this year as well.

There's a number of them. I'm not putting them all in the same buck in a supermassive. I am pointing them to say that investors have been very excited about anything that seems to be level to this broader AI built out. No, exactly.

And there was a scarcity of ways to play the theme outside of the video in a couple of other sems. And so people grab ed at what looked like IT was basically catching that same tel win. Obviously super micro, different story. And a lot of the allegations around that have been about revenue recognition and related party transactions, which means you still don't necessarily have clarity on how much of the cells run rate is sustainable and and genuine. So that to me is the big overhand .

meantime in video market, cap hire and apples now yeah.

exactly. I mean, that was maybe just just a matter of time, but will see if if that can how your apple keeps buying in its its shares. So we don't even know right now if apple's market capacity high is it's it's less report of your count, right?

I leave a to you to go with the contact, mike. Thank you. Up next, U. S. ChAmber of commerce co. s.

Susan Clark on how tax policy and regulations can impact businesses depending on who wins the race for the White house and congress to don't miss all night coverage of the election right here on the MBC speeches at some of the biggest names on the street, IT all started seven P. M. Eastern live from the new york socket .

exchange stay with us.

Welcome back plentier powering the S M P five hundred higher today after the company's AI traction across both commercial government customers propelled earnings, a result cox carp telling me yesterday he expects the air adoption to continue no matter the election outcome after the defense sector, more brother spending tends to be by party and heighten geopolitical risk, provides support, and china is seen as the passing threat that will continue regardless of the election outcome.

That said, analysts presenting a heroes administration as the consensus best case scenario for investors why what's expected he would continue current policy, which include supplementals. And if you get a republican senators, well, well, that could spur even higher defense. Spendings in senator Roger wicker, who is an ultra hawk on the defense side, would become chairman of the senate armed services committee.

Jeffery's rights. The biggest difference between trump p and Harris is support for U. S. Allies that there's elevated risk to ongoing supplementals under a trumpet administration and broader uncertainty with regard to alliances.

Capital alpha partners also noting the role of elan musk to trump and administration could be a wildcard for large U. S. Primes and federal defense services, especially if he is in fact tasked with slashing government spending.

Defense could be on the table there. Cow and though, is betting on quote to bedrock assumptions that dog base defense spending will not be cut under any scenario and that global defense spending will continue to increase due to geopolitical risk. And the defense industry is just one piece of the puzzle for investors.

Business issues like taxes, terabits, the deficit regulation, those are all front and center uh and on top of mind for voters. So joining us now is U. S. ChAmber of commerce co. Susan Clark is and it's great to have you back on the shell. I'm working there is so much first to talk about, but i'm going to start with i'm going to start with policy issue number one because there is an actual deadline for something to get done, and that is tax policy what needs to happen in this next year regardless of who wins the White house and who wins the congress. Great question .

is our number one priority. And it's our number one priority because as you said, we've got this looming tax Cliff, right. Our main priority is preserving the progress. Th tax provisions seventeen in our main concern is that fully sixty percent of the house of representatives won't have been here when that happened in twenty seventeen. IT means a lot of education on our part. You is kind of easy to understand the impact of an individual rate cut, is harder to understand the impact that the corporate, that things like R N D expensing tax credits that that a have on smaller large businesses and their ability to create jobs, raise wages and be innovative. And so that falls to us, and we've got a coalition of six hundred people meeting on friday to look at the new government and figure out the best way to start educating policymakers.

So coalition of six hundred, what are you hearing from your constitutes what they would like to see in terms of that tax policy?

You know, the number one thing that we hear is how to make sure we're focused on to growth policies that the corporate rate, that's the past through rate, and it's things that really help capital investment life like the R N. D. spending. So we hear the same things. And then then trick will be to hold together as a coalition and to make sure that all these new members of congress understand what's at stake.

Trade and terrace very much on the ballot here are. And although we talk about sort of the big tariff reti c that's coming out of the trump campaign, terrorism or something that have happened under the last two administrations and are expected at least to a certain extent, I realized the devils in the details are expected to exist potentially no matter who wins the White house. How does that play out?

Look, it's a broad topic, right? And if you look at trade generally, we haven't heard much from either campaign about how they think about opening markets. Forty million american jobs depend on trade.

We are from small businesses and farmers every day that want more markets to trade into. So number one, we want trade to be a broader agenda item and are hoping that we can get the next president to focus on IT. Because you're right, we haven't seen a great traders agenda in a couple administrations to your point on tabs.

Look, tabs are fine as a narrow tool. If you've got a dumping problem or a narrow national security interested, you are trying to protect. But as many of your guest i'll day today have been saying, a there is really attacks on the american consumer at a time when they're screaming ing about Prices and inflation.

Broad base terf s are bad for the american economy. And maybe worse, they are bad for american manufacturer. Fully fifty percent of our imports, our inputs into manufacturing. So think about how uncompetitive that makes an american manufacturer against a foreign competitor as .

we have this broader conversation. Slow, slow growth is something that you're pointing out when I look through my notes too, which I think is pretty interesting because so far, the economic data has been relatively strong, relatively resilience we saw today with ism services data and certainly all the chatter among economists that we're seeing a soft landing or possibly even no landing. So how much now hinges on policy looking to twenty, twenty five and beyond when you are having these conversations with ceos and businesses about a slowing growth environment.

I think you're right. Look, if we're looking at two point eight percent in the last quarter, that's the envy of the world in a lot of ways, and that's good. But we're more worried about the long term projections that say that grow is gonna Normal ize close to a two percent.

That's dangerous. It's dangerous for the american family, for the american business and even for our own national security. What we worry about in terms of growth policy is everything from trade, as we talked about earlier or worried about A I.

I think we don't talk enough about the promised A I and leave a lot of fear mongering. So we worry about a heavy handed approach. We worry about a heavy hand approach and regulatory environment more broadly.

What can we do to stimulate american innovation, which is the best in the world, instead of fear monger gering and being afraid of IT and regulating IT to depth? So these inputs that could make our great economy stay strong for a long time shouldn't be taken for granted. And Frankly, we're not hearing enough from elective officials about what they're gonna a do to get amErica growing for the long term.

Alright, we just scratch the surface. Susan Clark, so much to talk about. Appreciate your time today.

Thank you. Thanks for having me up .

next all of the after hours earnings actions that you need to know about as we await super micros animals called the top the hour and check out shares as selin ies is the worst performer in the S M P. Five hundred. The chemical materials company missing wall streets earnings estimates and slashing in dividend by ninety five percent because a weakening demand in its auto and industrial businesses.

Welcome back. Let's check on our overtime mover, super microscopes. Those are tanking. Second quarter earnings and revenue guidance coming in well below expectations. Microchip is lower after girs margin guidance came in below estimates.

Those shares are down four percent and was just get another check on exact sciences following off a Cliff after missing on revenue and cutting its full year earnings and revenue guides, twenty eight percent will up next. White housing affordability in three swing states could play a big role. And who wins the house? And don't forget, you can catch us on the go by following the closing the overtime podcast on your favorite podcast, APP will be right back.

Welcome back to overtime. Housing affordability could play a big role in today's presidential election since owning is no longer cheaper than renting in most of the country. That's a big change from just four years ago.

Diana eck has the details. Hi Diana. Hey, Morgan.

and we know that matter to at least forty percent of early voters who said housing affordability influences their choice, that according to a new report from red vin, a larger share of Harris and trust voters that IT was a factor. So let's look at how affordability has changed in the last four years.

First, as you talked about, that own versus rent equation in november twenty, twenty IT was cheaper to own them to rent a home in the vast majority of the country that just flips on its head today. Home ownership is now much more expensive due to the sharp increase in home Prices fuelled by the pandemic and all initial record low mortgage tes and sudden migration. Home Prices now about forty five percent higher than they were in twenty twenty, according S M P K.

sheller. Rents also rose during that period, but they've been coming down recently due to that oversupply of apartments. Now let's go to the bottle grounds.

The share of income needed to own a home today has at least doubled since twenty twenty in four out of the seven, arizona has seen the smallest change. Now these are the three states where IT is least affordable to own a home, and George is not far behind. On the right side of that, north CarOlina saw the biggest jump in the rent burden, wm.

ab. As rent burden actually came down, both Harris and drop a Green housing cost are too high. Harris has proposed building three million new housing units with an expansion of the existing tax and new credit for builders.

She's also called for a home buyer tax credit as well as rent caps. Now trump is less specific, but he has called for opening more federal lands for housing and cutting back regulations to make home building easier. Trump has also said he will lower mortgage rates, but organize, you know, presidents don't set interest rates.

we know. And of course, we get a fed policy meeting later this week. So that'll be another thing to watch in an already busy week. Diana was interested to me too, is they have a number of key ballot initiatives, uh, that are also being voted on today and policies like grand control, homelessness, policing as well IT all speaks to again this broader housing dynamic and shortages that we're seeing in the country. So I guess, IT cases, the question, how quickly can either candidate or any policy actually fix the dynamics that we do see, the mismatch between supplying and demand?

Well, a lot of IT, of course, is gonna depend on congress and what we see the outcome of the election is in congress because a lot of these measures would have to be passed by congress, especially the tax relief. But as you say, you know, all these ballot measures are out there because housing ability is so key to all americans. Really, we're seeing, as we showed you those numbers, that, that share of income that needed for either rental housing or whole ownership is just so much higher than IT, not just four years ago, but historical. And that's why they are looking for change.

All right. I an oic, thank you, is really interesting. We'll see how all of this plays out. Of course, major averages having an update as we've seen in the last five presidential elections, uh, with all the major averages up more than one percent, exit poll da starts to come out now that's going to do IT first here over time, but vast money begins right now. C.

N, B, C has quick and easy to understand business news updates at the open midday and close every weekday markets, money and more from wall street to main street. I, C, N, B, C, Jessica adding to follow and listen to c nc business news updates wherever you get your podcasts.