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We are right on the eve of Jackson Hole and hopes for a Fed rate cut at their meeting next month. Are they quickly fading? We'll talk about it all, what it means for you, your market and your money. And also what could we expect from Jay Powell speech tomorrow? Will he hint two more rate cuts ahead or dash our dreams? Plus, Walmart woes the retailer shares dropping after its first profit miss in more than three years. How tariffs might be the story. And now one former executive, by the way, sees things playing out. Plus, healthy gains for the pharma sector. How a logo change is sending shares of one restaurant company sharply lower. Can you guess who that is? And CME CEO Terry Duffy is here on his company's new partnership with FanDuel. They are bringing new prediction markets to their platforms. Hi, I'm Brian Sullivan in for Melissa Lee, who is off again tonight. Coming to you live from Studio B at the nasdaq. And on your desk tonight, Tim Seymour, Karen Feiderman, Dan Nathan and Guy Adami. Welcome, Brian. Thank you very much everybody in one minute. But we're going to start with this. The slow drip lower in stocks, the S and P notching its fifth straight losing day. Doesn't sound like much, but it's actually its longest losing streak since January 2. The benchmark index hitting a record just on Friday, but since it is down a lot, about 1.7%, but down five days in a row. The Dow in the NASDAQ also both lower today and now also for the week, NASDAQ negative for the month of August. Meantime, treasury rates ticking a little bit higher. Yield on the Two year hitting its highest level since the start of the month. Tenure up a little bit as well. Investors focusing their attention on this year's big Fed confab in Jackson Hole, Wyoming. The market's going to be watching Jay Powell speech tomorrow for any hint of what the central bank might do at its meeting next month. Odds of a rate cut coming down a little bit. In recent days they were basically 100%. Now I think around the high 80s. Also on the radar, any new developments in the future of Fed Governor Lisa Cook, the Department of justice today says is it opening an investigation after the FHFA chair accused her of committing mortgage fraud. We'll get more on all of this from Steve Liesman. He is in Wyoming tonight. Steve, let's start with Jay Powell. That speech tomorrow, what do we know? What can we expect? Yeah, you got it right there, Brian. Doubts are rising ahead of Fed Chair Powell's big speech here coming in Jackson Hole about just how dovish he's going to be. And I'm sorry to correct you, Brian, but you might have blinked because futures markets now showing not 80 but a 70% chance of a rate cut in September and a 30% probability of no change. That's a high for this contract and it's been happening throughout the day. The change follows some hawkish comments from Fed officials out here today. We had Jeff Smith, the Kansas City Fed president, telling us he remains concerned about inflation, end quote. We really have to have very definitive data to be moving that policy right now. And then we had Beth Hammock, Cleveland Fed president, talking to Yahoo said with the data I have right now, if the meeting was tomorrow, I would not see a case for reducing interest rates. Not good for that Fed probability of a cut. With two Fed governors, the president and markets pushing for rate cuts, Powell could finesse the problem by letting the data do the talking, allowing market expectations to adjust to two big data points. Inflation, unemployment that come in before the Fed September meeting. He could suggest tomorrow a cut is possible but not necessarily promised, maintaining the 2% inflation target and the goal of hitting it is now near three. But say the Fed is still restrictive and would still be fighting inflation even after a 25 basis point cut. The likely result, no one ends up quite satisfied tomorrow with a speech that doesn't deliver as definitive a rate cut outlook as the doves want but will not firmly place the Fed chair among the hawks either. Brian, you know, okay, so you got what happened. Steve, you are exactly right. I'm looking, I'm looking at some of the Abilities don't blink. I think I did blink because I swear this morning it was like 87% or last. Now it's 73%. So before we get to Lisa Cook, what happened? Well, we did the interview with Schmidt. He was on the hawkish side. He'd been on the hawkish side. I think there's been some reporting that maybe said, you know what, folks, it may not be the dumbest idea to hedge a little bit your bet on that rate cut because look, the Fed still has a 3%, 2% inflation target. And I don't know if you followed our Fed survey earlier this week, Brian, but the outlook for inflation this year is 3%. The outlook for next year is 2.8%. Really hard for a Fed chair to step up to the plate and say I am cutting rates even while I'm not hitting my target and not expect it to hit my target even while the market's pricing it in. So the Fed chair has a really tough time to make it to kind of finesse this issue. He's got a split in his committee, a really definitive split here out in public in terms of people saying they don't want to cut and those saying they do. And I could count, Brian, I think he has the votes right now for no rate cut if he wants it. Wow. On a totally different note, obviously there's been a lot of drama around Lisa Cook allegations, and they are only allegations of mortgage fraud. She basically denied it, saying that she's going to submit documents, but she has to. Do we expect to hear anything about Lisa Cook at Jackson Hole tomorrow? I mean, not, not necessarily on as part of the program. We'll have Beth Hammack on as well tomorrow after the Fed chair speech. We'll ask her about it. We'll have two Fed president, former Fed presidents. We'll have Roger Ferguson, former Fed vice chair, and Patrick Harker on tomorrow morning on swap. We'll ask them about it. But mostly, look, they're saying, let's wait to see what Lisa Cook has to say. They see the attack as political as part of this broadcast administration campaign to get them to cut rates. And look, the administration's playing for keeps. They're playing hardball. Whether or not they have the goods on Lisa Cook and whether or not. There's an interesting thing that's been brought up today, which is, first of all, the Washington Attorney General told Powell he should remove Cook from, from her seat. But Powell doesn't have that authority. Only the President does. The President can only remove her for cause but the question is with these mortgages done before she was a Fed governor, does he have cause to remove her from what she has done as a Fed governor, which the mortgages were done before. And so tricky situation. I think people are trying to say let's take a breath here and let's see what Liz Cook has to say and let the judicial process or the legal process work itself out. But, but what you quickly, but what you said is very important that Jerome Powell, even if he wanted to, and I'm not saying he does, I'm just it could have been anything does not have the power to remove Lisa Cook or any Fed governor. No. And Lisa Cook was rather defiant in her own statement saying she won't be bullied out of office from a tweet and she said she's going to take a look at the documents that I guess five year old or four year old documents that you hear about on air, Brian, whether or not you could reach those or find those right away to make sure that what Bill Pulte is saying is correct and to see what happened back then. There might be a story, there might not be a story. She may have gotten this wrong, she may have messed up, may have done something illegal and then I guess the ships will fall where they may. But let's get the facts before we jump to conclusions, I'd say. All right, well said. Steve Leishman, Jackson Hole, Wyoming. A huge, huge day tomorrow. We're really glad that you're there, Steve. Thank you very much. Kay Adami. So it was hate being wrong sitting here. 87% chance last night now down to 73%. Does the stock not bond. Does the stock market care about a rate cut? I think so. You know, there was this time last year when the S and P was about a thousand points lower than we are now. The market was pricing in six rate cuts in 2025. Here we are now a thousand points higher. We're talking about two, maybe three. So I would say all of that good news in terms of just rate cuts are priced in. So the short answer is is absolutely the market will be disappointed if they get anything less than I think the market really cares about a dovish Jerome Powell more than anything. I think even if they cut, don't cut, whatever, I think dovish Powell is very good for the market. I don't think that's what we'll get. What's the power you think we have? I think not Dovish, closer to hawkish. I'm just saying what would the market like Dovish Powell, I think he'll be neutral. What's the power we deserve? Well, the deserving got nothing to do with it. The power we deserve, but not. It's, it's. Dan may have been somewhat tongue in cheek, but the power we deserve is consistent with the power we've had. The Fed we've had so far should not be cutting in September based upon the heat of that pie number. The four week job average on the jobless claims we just got this morning show that even during that payroll, even with some of the tick up during the August payrolls, that there's no material weakening in the labor market. Okay. Inflation is better than where they have been and this is a Fed that's been data dependent. So back to the Powell I want, I want the Powell that's following the script that Powell has had. And I think what we have going into this is, I think probabilities are higher based for the market on the, on the, on the cut based upon the politics. But that's okay. I mean ultimately politics. Well, there's no disputing that. I won't get into the politics. I'm sorry, the politics. I don't want to use the P word. I'll talk about the fact that in the last month since at least some of the heat has been more on the Fed. You've seen homebuilders rally 16%, you've seen retail rally almost 5%. You've seen interest rate sensitive parts of the market have an outsized move. There's no question the market has been moving on. Some sense that we are getting into a dovish environment. Okay, so what I heard, the Fed minutes, Dan, we normally we do them. I don't pay that much attention to them. Yesterday I did because the Fed minutes revealed they are worried about inflation, they're worried about tariffs. That would signal no rate cut. I mean it could even signal a rate hike. But at the same time they said they're worried about the job market and how AI is going to impact jobs. So if you're worried about jobs, that's a rate cut. That's about inflation. That's not. How do they balance out all this worry here? I mean, come on. I mean they also said, they also said they're worried a little bit about asset prices. I don't know if you caught that one. I thought that was kind of interesting also. But you know, what does that tell you? Well, we talk about all that worry and I think what Tim saying is the market's been climbing a little bit of Wall worry. I know that's a line that guy likes to use pretty often. If you look at the options market, it's pricing about a 3% move between now and the Fed meeting. So what do we have between now and the Fed meeting we have tomorrow? We have the jobs report on September 5th. We have CPI, we have PPI. Maybe the Fed's most favored PC. Yeah, that's it. And that seems very complacent to me, you know, so if you're looking at the markets right here and you want to get along, you want long exposure, it's one and a half percent between now and September. So what if we get it? What if we get a hawk. What if we get a hawkish Jerome Powell? A defiant, maybe not political, but a defiant and hawkish Jerome Powell tomorrow. I think he's going to be defiant. I mean, I think he's learned how to talk to the market. I think he's learned how to talk to the media. So defiant is not a word I would use, but I do think hawkish is an absolute possibility with everything that's going on. And, you know, I'll say it again for the umpteenth time, they can do whatever they want tomorrow. I mean, take a look at what's going on in Europe, and we're going to talk about this a little bit more. Rates are going up across the world right now, except where in Switzerland, where they're collapsing. Why is that? Because their debt is about 37% of their GDP. So countries that are laden with debt are being punished in the form of their yields going higher. We are one of those countries. All right, let's broaden out the conversation. Talk a little more about what Jerome Powell's comments could mean for the markets. Really, the currency markets. Bring in Jens Nordvig. He is CEO and founder of Exante Data. Jens, good to have you on the program. Thank you. You know what else has happened? No, what? Besides your. Your Swiss yields. The dollar has collapsed against the euro. It's been one of the most rapid moves of the US Dollar in. In months. What is that telling you? So the. This year has been extraordinary. My company specializes in tracking capital flows. And that's where the big signals have been, like a big asset allocation shift. From what to what? Away from dollars in international portfolios. Like, you can see how European equities have performed, right? Big outperformance. That's because people are allocating more to European equities. So we saw that very aggressively from March to June, and now it's Less clear. Right. So in the last two months, right. It's looking a bit more normal from a first half that was extremely unusual. And I think you're right to focus on the Fed now because I think after this big sort of highly unusual asset location shift, we're going back to think about the Fed again and the next leg for the dollar is going to be defined by what the Fed is doing. And yeah, we just talked about it. Is it unemployment they're looking at on inflation? Right. It's a very tricky balancing act here. But, but Jens, so curious to hear more though about the fund flows and the asset allocation that you said was really more of a phenomenon maybe of 2Q, not necessarily 3Q. The dollar has been sideways since April. I mean let's be clear, we got to $115 Euro in April and back to the central bank differentials that you're saying will define the, the next move in the dollar. You know, at this point I think it's, it's somewhat unknown. My question really though is do you think that these fund flows to European equities and out of dollar based products are coming from the rest of the world? Do you think this is US investors that are overweight here? Thinking about the rest of the world more for the first time, I think you can see some very clear patterns in the data. Right. Europe was early in this because they also had the big German fiscal pull. Right. That got the Euro moving. And then actually if you look around the world, Asia kind of was the second chapter. They moved really later in the year. Right. So June was when they really peaked out. Right. So the Euro hasn't moved that much since, you know, early Q2 as you point out. Right. The Asian currencies move later but overall the dollar has now stabilized for the last six weeks and we're looking at the data. Is the labor market going to force them to cut? I think that's down to that. The inflation picture, what do you think? What's the answer your own semi question. I think the inflation picture is highly problematic. Like everybody looks at every single inflation report. Right. And then after the last wing one there was like sort of a lot of people wanted to run a victory lapse. We don't have that much inflation. But don't forget tariffs actually came down a little bit after being super high in April. Right. So when we look ahead we're going to have another tariff shock where actually tariffs are going up again. So by October that's when that is going to be really feeding in. So does The Fed want to be super aggressive. I think what is most likely is that they do, you know, a pretty hawkish cut in September, a little bit of insurance cut. But they are not going to be committed to be on a multi cut path because the inflation picture is just too tricky for them. Let's go back to the dollar real quick because this administration, the Treasury Secretary saying the quiet part out loud, they want the dollar to be weaker. Make no mistake about, I mean this is a policy thing and be careful what you wish for. My question though, at what point does it matter to the equity markets? Yes. I've been, I've been connected with Scott Besson for many years. He was one of my first clients when I launched. Exactly. Data. Right. And he certainly has views on the dollar. But how does the US really influence the dollar? Right. The US doesn't have reserves like China has reserves where they literally set where the dollar is. So it's kind of more down to verbal interventions. Not that they can just say, ok, we want the dollar to go there and when we spend a trillion dollars to get it. So it's going to be more tactical, I think how they impact the dollar with their verbal rhetoric and eventually it's going to be up to the cycle, like what is the cyclical state of the US relative to the rest of the world? And it will be very odd if it's not the case that this big tariff push is going to be paid for mostly by consumers and therefore consumption is going to shift down a gear. When we look towards the end of this year, Jens or Big Exante Data. Great stuff, Jens. Appreciate you coming in. Thank you very much. Thank you very much. All right, we've got a lot more to do. And coming up, another retail giant reporting. And this time it is Walmart feeling the pressure. Not a terrible quarter, but the stock down about 5% today. Plus today's fast movers include Paramount, Skydance, Cracker Barrel and pharmaceutical names all catching our eyes. We're going to talk more about pops and drops and biscuits and gravy in two minutes. My name is Josh Brown. The best stocks in the market is very simple. These are stocks with good fundamentals, a great story and tech. They're in the process of rising higher. Everyone needs to invest. The cost of living goes up every year. The purchasing power of the dollar goes down. Assuming we're all going to be here for a very long time, we're going to need more money. The stock market is how that happens. Join Pro for exclusive access to Josh Brown's Best stocks in the market@cnbc.com Beststocks let's talk about Walmart retail. Walmart stock tumbling almost 5% today despite raising guidance for the year. The big box retailer did Acknowled tariff costs are starting to rise. By the way. First eps meet beat meet miss he said in three years I just threw them all in. One of them going to be right. Let's bring in now former Walmart US CEO Bill Simon for reaction. He's now on the board of Darden Restaurants. He is the chairman of Hanes Brands. Bill, glad to have you on. It was a myth. First miss in three years you have the tariffs out there as well. And the weirdest thing about the quarter and maybe you could address this was these huge like insurance costs for disability and other claims. How do we read the quarter? It was about as good a quarter as any retailer could have in any environment. Nevermind, market didn't think so. Yeah, look if you liked them yesterday, I don't know why you don't love them today. Top line's growing, they're expanding their margin. Look, they felt good enough about their business to, you know, buy back another 1.6 billion on top of the 4 billion they bought back last quarter. They are really hitting it on all cylinders. I don't get the, I don't get the decline in the market today at all. How do we read the tariff issue and how do we read this, this one time insurance claim issue? I know it sounds a bit wonky, called WBI wonky but important. We talked about it on Power Lunch today. It wasn't immaterial. It's a big deal for Wal Mart. Everything at Wal Mart is a big number and periodically they go through and reassess the, you know, the insurance rates and the accruals that they have to make. And it sounds like it was one of those type of adjustments that it's a big number but it's a, it's a one time adjustment. It's not a, it's not a systemic issue. It'll be adjusted and they'll be reporting that. And the fact that they raised their guidance for the year or held that actually they think they raised their guidance for the year. They're not concerned about it at all. As far as the tariffs go, there's no tariff impact in that business. Inflation is 1%. There's price increases and there'll be item level price increases as items get tariffed. But you know, about two thirds of what they sell is domestic anyway. A lot of it's food and that's the high velocity stuff where the tariffs are going to bleed into the business. I think it gets absorbed either by the, you know, the, the manufacturer. Walmart's clearly got room to absorb some. You know they were up 26 basis points in the US in margin this quarter on top of 40 last quarter. So they've built some in for the year. They're not worried about it or they wouldn't held their guidance. Bill, it's Karen, thanks for being on. I agree with you. I thought the quarter was great. I thought the call was great. I'm long the stock think it was just expensive going in but listening to the call I thought that call was pretty bad for Target. It seems like they are the, they are the donor of market share and I wondered what your take is on Target. Well, Target's the, you know, the reciprocal of Wal Mart. You know Wal Mart's got 70% of their product because of a real heavy food mix. 70% of their products are domestic and they're not subjected to tariff. And if you look at Target's report, you know they're up, their margin was down 100 basis points where Wal Mart's was up. And so Target has the impact of tariffs on their business and they don't have the food business and the velocity to be able to offset that. They got a pretty steep challenge ahead of them in this environment. Bill, what did you make of the Target announcement bringing an insider as the next CEO of the market? I don't think that stock sold off on the back of the quarter as much as it sold off on the fact that you're just bringing somebody in internally to probably do exactly what's been done over the last few years. Thoughts on that? Yeah, I think that's probably the fear. I don't know him well but you know, his reputation is quite a good operator. The fact that Brian's going to stay, I think he's staying as executive chair or he's going to stay keep his role on the board. I think, you know, people who don't love Target would probably not see a ton of change coming. It's awful hard to change direction when you were probably the guy that helped get you down that road in the first place and the in the architect of it's the chair of the company builds. Tim, the gross margin was the one part of this Wal Mart number that I thought people at least were able to lean into and I think it was going into the number part of a big focus because they were going to Use kind of retail inventory accounting and blah blah blah. The whole story though for Walmart over the last two years or three years of rerating has been about margin. In has been about where tech and digital and dtc, well E commerce has been a big driver of margin. Just thoughts on this and again is this an opportunity because there's the gross margin profile and trend is quite good. You know you can't really underestimate. I can't really even overstate. I don't even know the way to communicate it. The benefit to the PNL that sales volume, same store sales volume delivers in operating margin leverage for, for Walmart, you know the fixed cost base that they have is enormous. But when you start jamming through four and four and a half percent same store sales through that operating model, the supply chain efficiencies and retail operating efficiencies just sheds money. If they could keep those top lines going and that's their forecast, they're going to be just a bear of a company. Bill Simon, always a pleasure to get your views Bill, appreciate it. Thank you very much. Thanks guys. Yeah, you're welcome. You know what he said, Karen said a lot of interesting things. Number one that so much of stuff is groceries that's untarriffed. Not everything else by the way is tariff. But you do wonder if Target continues down this path, how much share gain, profit gain is Walmart and Costco going to take? Yeah, I would be concerned because Walmart talked about having that higher end consumer than they've traditionally had. So that's got to be someone who could have been at Target and some of the mix of Wal Mart sales were in those areas that are some higher margin. Not as much as we would like of course, but still very good. And that's also where Target is losing out I think, I think donating share to Wal Mart. You know it's interesting over the last few days we had this volatility in the market led by some of the biggest stocks in the market all related and you saw a bit of rotation. You saw it into pharma stocks, you saw it into some staples, you saw it in energy and the like. And you know I think that you know Costco and Wal Mart are kind of staples right here and they don't act particularly well. They never confirm the S and P highs that we saw for the better part of the last month or so. So it's interesting to me that they weren't a beneficiary in the last few days and they've been underperforming relative the S and P over the last month or so and you get a quarter like this and you guys are all telling me it's great and the guide's fine and everything like that, but it's interesting that investors aren't willing to basically give them that sort of, you know, appreciation rate here. Yeah, good stuff. Walmart, an interesting story. Target maybe an even more interesting story. All right, speaking of interesting stories, there's a lot more fast money to come. Here's what's up next. Paramount pops while Cracker Barrel heads south. The headlines behind both those opposing moves next. Plus betting on the market. The CME teaming up with a sports betting giant to offer a new way of getting in on the market action. You're watching Fast MONEY live from the NASDAQ market site in Times Square. We're back right after this. And now a next level moment from ATT Business. Say you've sent out a gigantic shipment of pillows and they need to be there in time for International Sleep day. You've got AT and T5G so you're fully confident, but the vendor isn't responding. And International Sleep Day is tomorrow. Luckily, AT&T 5G lets you deal with any issues with ease. So the pillows will get delivered and everyone can sleep soundly, especially you. AT&T 5G requires a compatible plan and device. Coverage not available everywhere. Learn more at. And CNBC make it's online course how to Build a Standout Personal Brand Three industry experts will show you how to create and grow your brand step by step. There's no time like now to start building your personal brand. Register now@cnbcmakeit.com Personal Brand all right, welcome back to Fast Money. Gotta switch it up a bit actually. Talk a little bit about Guy Dami baseball. That's right. Talking about because NBC Universal and Major League Baseball reportedly nearing a three year streaming rights deal that could hit $600 million. Julia Boorstin in the home of the Dodgers and sort of the Angels. What do we know? Home of the Dodgers. Brian We're Dodger fans in our in our household. While the mlb, NBC Universal and Netflix all say no comment to the reports. But sources tell me that deals among those parties are coming. NBC Universal is in advanced talks to carry MLB games on NBC and Peacock and a three year deal worth nearly 600 million. While Netflix is close to a deal to stream Home Run the Home Run Derby in a deal worth more than 105 million. This according to a report in the Wall Street Journal. Now while sources tell me the deal is not yet done. They also say that NBC Universal is close to securing a deal with for baseball, including wild card playoff games and nbcu. Excuse me, NBC could air Sunday games while other games stream on Peacock. And a source close to the situation tells my colleague Alex Sherman that the Netflix streaming deal for Home Run Derby would be between 35 and $50 million annually. Now, these deals would pay the MLB higher revenue than its previous deal with espn, though ESPN has reportedly made a deal with to fold the MLB TV streamer into ESPN's new Unlimited app, which just launched today. There could be some other deals for ESPN as well. And all of this could be a win for nbcu, giving it some more valuable sports content. For Peacock and for Netflix, this would build on its big move into live sports, which of course is valuable for its ad business. Brian Julia Boorstin in the home of the Dodgers we go it's the L A Angels of Anaheim or whatever. Of well, I mean first of all, the good news for baseball is after seemingly being an afterthought to some of the other sports deals that were getting done out there, they are going to exceed the 550 million a year. Must be guys something to do the exciting baseball being played in Queens these days. But, but, but ultimately I think this is kind of interesting for the Netflix story. The Home Run Derby. Home Run Derby. To me as a baseball purist, I find it to be a little silly. Ultimately though, it's an event. It's not necessarily sports. This is exactly where Netflix is going. I actually think it's a great thing for because I think it's the kind of content that is very consistent with what they are doing in sports. I think the fact overall for, for Disney and the ESPN side of this is that ESPN right now, as we've kind of seen over multiple deals even that have taken place in the private equity side of both the media space and even how people are evaluating what DTC ESPN as its own bundle really means for, for Disney overall, I think it means that Disney is, is got a value, is got an asset that is underpriced. I think this is all positive. ESPN and Netflix very good. And a big interview of course on CNBC today with Bob Iger and Jimmy Pitaro, the head of ESPN. Go to cbc.com to check it out. All right, coming up, kind of staying on sports football season fast approaching. Fact college football kicks off this weekend. But that is not the only action drawing the attention of sports bettors. The CME teaming up with FanDuel for a new way to play the markets. CEO Terry Duffy coming up. All right, welcome or welcome back. If you're just joining us again, here's how things wrapped up. Stocks closing, lower, investors really waiting. We call. I called it yesterday, guys. Jackson hold because of investors kind of waiting around. I wasn't here yesterday, but that's clever. I'm glad I was here to hear you do it again today. But somebody actually brought up the bitcoin conference down the road and called it Jackson Hodl, which might even be better. So either way, the Dow dropping more than 150 points. The S&P falling 4.10 of a percent. By the way, the S&P 500 is now on a five day losing streak. The NASDAQ down about 3.10 of a percent. Let's get micro shares of Paramount Skydance jumping nearly 15%, guys. Paramount Skydance kind of like a meme stock at this point. It's up 45% since closing its merger. That move even comes as two top Democrats investigates whether the companies caved the demands from President Trump to an approval for the deal. Meantime, shares of cracker barrel dropping 7% today. The company facing backlash over its recent logo change. The restaurant chain removing. There's the old logo on the left. It's some guy. What's wrong with that? Looks great. Barrel. Is that guy? It looks like a guy. Not guy. No, that might be guy. They stripped out the guy and the barrel and they kind of freshened it up. They also changing the stores. That's disappointing. What do we think? We have a ruling on this. Maybe they feel the barrel like it's maybe like moonshine over a barrel. Have you ever been over a barrel? From time to time. Well, it is Cracker Barrel Old country. I know you haven't been to one. I have been to the many of them. And you go in and you shop and you buy licorice and stuff like the Cracker Barrel. Why? Why do you think you're the only person that's been there? I mean, you know, we, we travel in the south as well here and I love the South. You've been to Maryland? My wife from the South. I've been to a lot of Cracker Barrels and I'm disappointed by the logo change I guess is what we're doing here. I don't like it. So you're a Huddle House guy, not a Waffle House. That's. The Waffle House is the greatest place in the world. Fair. Fair enough. All right. So we'll get more on that in just a bit here. Meantime, CME group partnering with FanDuel to launch a new way of betting on financial markets. For as little as $1 a contract, customers in America will be able to place yes or no wagers on market related events. From specific price levels in the S and P to economic indicators like the inflation rate and GDP and more. Joining us now for an exclusive conversation on this is CME Group CEO and Chairman Terry Duffy. Terry, do not worry, I will not ask you about the cracker barrel logo change. But I will ask you about what some call the gamification of markets. Why this move? Why FanDuel? Why now? Sally, thanks for having me on. I appreciate it very much. Why this move? Why now? I mean, I think the world is evolving. You've seen CME move more into the retail trade over the last several years. I've said too many of times to some of the panelists on your show tonight that I think retail is going to continue to grow. And for us to have a partner like FanDuel and be able to have 14 million accounts on day one, to have the ability to participate in CME's markets at their comfort level is really important. Not only I think the CME but to the financial services industry as a whole. We want to have educated people in our marketplace. This is a great way for them to do it. We are going to offer these auction style markets throughout the day, probably three or four a day in different asset classes. We have such massive benefits to do so with FanDuel because we have our intellectual property products that nobody else has. Then we also have the biggest, deepest pools of liquidity for our market makers to create this. So we think it's a great way to move forward with FanDuel. I want to thank my friend and partner Peter Jackson and Amy Howe. They did an amazing job of seeing through how this potential JV is going to be something very exciting for them. It's not a cannibalization play. I'm not becoming a casino. Contrary to popular opinion, I didn't buy a casino. These are markets that will be offered to the general public and we think is massively exciting what it could do. So just to be clear then Terry, and for the audience listening to saying what exactly is happening here now we can bet on where certain things may come in. So if I want to bet that the unemployment rate is going to be 4.1%, I could bet on that or do I bet it'll be above or below 4.1? That's exactly what it is. It'll be set. And mostly, Brian, it will be on specific products that I outlined a moment ago, whether it's gold or anything else. So you'll set a price at a certain time and then you'll have a, a window of opportunity to say, I believe it'll be above or below that. Yes or no? You could bet as little as a dollar or better, a lot more than that. And you can, I say bet you can trade is to do that. And you get paid based on whether you're correct or not were that price closed at that moment in time. Hey, Terry, it's Dan. Thanks for being here. Quick one here. You just mentioned about retail, and this is obviously an extension of that. Going back to January, you launched futures on Robinhood. And so give us a sense of like, you know, you guys have the biggest marketplace for futures in the world, right? It's a very regular regulated environment with all the goofiness that goes on in the retail market. This seems like a great way to kind of get access to some of these bigger markets that institutions have had for decades. Well, that's exactly right, Dan. I think it's really important and I think we're at an inflection point also. I think that people want access to all different types of things, including financial services. And for those that are sitting on your desk and around that listen to your business shows, they should want that because that makes the ecosystem even bigger and level playing field for all. So that to me is a really good thing. But yet they don't. Some of them can't afford to trade some of these larger contracts. So you bring them in at a level that they feel comfortable to participate in. And these will be fully funded. And I want to emphasize that fully funded contracts, so you can only lose what you put into it or only make what you put into it. So there's no margin involved or anything else. So I think it's a great way to make certain that, you know, your customer bases continue to come forward. For cme, this is a part of our strategy, Dan, with the retail, I am not, and I have not lost my focus on the institutional part of our business. It's a huge part, I think, that is going to continue to grow. But anybody who does not believe that other participants want access to markets and everything else, I think they're kidding themselves because they do. So we're going to offer it to all and we're going to focus on all the different levels of participation in CME's markets. I'm going to open up the Kimono a bit. And share with you that Brian showed us all a picture of Donald Sutherland and said that you look like him. Donald Sutherland are very happy. You know, I never liked Terry, Donna. I never liked Shelley, but I was shaking his head. I'm not sure he's happy. I was going to say more a young Troy Donahue. That would be me. But also say this in terms of predictive markets, people don't realize the Fed Watch Tool is the CME Fed Watch tool. So you've been ahead of this for quite some time. So speak to that well. And it's an important factor. You look at a day like today, guys, really interesting what's going on today. Our average daily volume in Fed fund futures is around 434, 40,000 contracts a day. Today we traded over 600, 650,000 contracts. And when you looked at the probability of the rate cuts this morning at 87% for September, going down to 70, you see how people need to manage that risk. So, you know, sometimes it troubles me when people say, well, if interest rates go down, that means CME doesn't trade anymore. So if interest rates go from 4.25 to 4 and a half percent to 375 or 3,50 or something like that, they can't go to zero anymore. We have $37 trillion of debt. There's so many different factors that are out there. People need to manage risk in interest rates. And it just goes to show you how sensitive it is when you have a contract like Fed Fund futures that goes from a probability of 87 to 70 and our volume almost doubles on an average daily basis. That's how important it is for the sensitivity of our interest rate complex. And I got it wrong at the top of the show And I quoted 87% because it was that last night, Terry. Now it's 73.5%. Shows the liquidity, the velocity and the volume was that snap your fingers a few more times, Annoy the remaining audience. Had too much caffeine prior to the show. Terry Duffy, new partnership with FanDuel. We love the predictive markets, Terry. Love the beer too, Terry. Thank you very much. Thanks, buddy. All right, coming up, pharma and health care names in the green today. Some of those stocks that are catching our attention and how these find people around this desk. Yes, thank you, Brian. Snap it up, snap it up. We're back right too. All right. Weight loss drug makers Novo Nordisk and Eli Lilly getting a boost today after Serena Williams, tennis star, says she's used GLP1 drugs to help her lose weight after giving birth. A tennis star partnering with ro, which is funded by her husband's company. His name is Alexis Ohanian and offers access to drugs like Novos, WeGovy and Lilly's Zepbound. Karen, your your take on these names and maybe the partnership. Well, I thought it was interesting. We know she was related to Roe. We don't know which of the GLP ones. And I remember Oprah not wanting to say which she was on because that would be a huge boost to whichever one it was. They were both up nicely though. But I'm long both Novo and Lilly Farm has been tough though more generally until recently. All right, Long both Novo Nordisk and Eli Lilly. All right, coming up, Coconut Cold brew. Ew. Yeah, the changes Starbucks is making to its drink menu and whether it can maybe recaffeinate. Oh boy, that stock stick around. We just had a two minute debate about the merits or the defense of coconuts. Starbucks rolling out coconut beverages in hundreds of stores today, aiming to bring in a younger and apparently coconut loving customer with its Matcha and Cold Brew drinks. Starbucks shares down about 3% this year but have come off their lows. New CEO big change Kate Rogers joining us now from San Francisco. Kate is coconut the thing now is the beverage the moment. It is the beverage that is the moment. Good recall to my story from a few days ago, Brian. So the drinks are called Cocoa Matcha and Cocoa Cold Brew and they layer Matcha foam or cold brew foam over coconut water. This is a Test expanding to 400 additional cities today, including New York, Los Angeles and the greater Chicago area as it leans further into health and wellness. The company's senior Vice president of global product, Dana Pellicano told us, quote, health and wellness at Starbucks isn't a trend, it's a long standing commitment. Expanding the test of our Cocoa Matcha and Cocoa Cold Brew beverages is the next step to accelerate our health and wellness beverage innovation plan. Cold beverages, energy drinks and healthier options are all of high interest, of course, to a key demo. Gen Z Starbucks CEO Brian Nicholl told analysts in the most recent quarter that Starbucks customer value perceptions were near two year highs. Driven by gains among Gen Z and Millennials. They now make up over half of Starbucks customer base. This also builds on the cold foam platform which has become one of the company's most popular drink modifiers. In late Q4, Nickel also said that they will launch Protein cold foam, which is another health and wellness offering. So again, all of these drinks, cold drinks, energy drinks and healthier drinks. Very, very popular with younger consumers which are so key in this environment. Guys, I guess coconut is the moment. Kate Rogers, thank you very much. Thank you, Mr. Coconut. Yes. You love coconuts. Do love. Is this going to bring you back to Star, Bring you into Starbucks more? I hadn't thought that coconut was missing from my coffee drinks or my underneath my matcha water or whatever was going on there. I just wish Starbucks would brew coffee and rather than use those crazy machines. But I like the story of Starbucks. I like what they're doing on the operational side. I think the story for Starbucks is as much though about where discretionary spend might run out of some gas. It's not terribly expensive, but it's not shockingly cheap. I think this stock is rangebound. As much as I love the stock and as much as I love the place, I think it is a little expensive. What I will say for me would be cocoa matcha. I need the code to the men's room in like 30 seconds. If I were to have one of those things. So you're not a matcha match. My constitution. What? Do you see that? Oh, boom. Yeah. Up next, sort of your final trades, we hope. Matcha Matcha man. Tim, Final trade time. Brian. I'd like to snap my fingers but instead I'm just going to say target is my final trade. Aaron. Yeah. You know Cracker Barrel's intrigue. If they were to reverse course and say you know what made mistake. We're going back to Hilden. I think it goes higher than if they reverse Dan Kweb. That's the ambassador's way to play Chinese Internet. Playing for a breakout. Nobody likes coconut mounds. Don't like coconut love mounts. I'm enjoy they all. It's. It's not good. No, it's really good. That's there. If that's Starbucks gonna turn the corner, then pick is Walmart. Thank you, folks. Thanks for watching Fast Money. I hope to see you tomorrow night. We'll see Mad Money starts now. All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC, NBCUniversal, their parent company or affiliates, and may have been previously disseminated by them on television, radio, Internet or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable. But neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy. And it should not be relied upon as such. 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