♪ welcome to "power lunch." it's tuesday, everybody. alongside contessa brewer, i'm tyler mathisen. glad you could join us. the dow getting help from united health after its earnings were out. new comments from jay powell about a lack of progress on inflation is tripping up stocks in a bit. the focus is back on earnings, the fed for today, the geopolitical tension is taut. israel has not yet responded to iran's missile attack. we're going to talk to the head of emerging risks for a global insurance brokerage about the threats to business and to the macro economy.

first here is a check on the markets. the dow industrials in the green up .2% in spite of chair powell's comments about rates and where they need to be and the persistence of inflation. s&p 500 off by 1/16th% and nasdaq composite just barely in the red. earnings season really picking up. we have several more bank earnings this morning. let's get to leslie picker for a rundown on those results. leslie, hi. >> hey, contessa. bank of america trading lower at this hour after results came out. but, the call started, the firm reiterated rather than raise its net interest income guidance, that caused the stock to slide. executives on the call saying that they expect that loan-making metric to trough in q2 and grow again in the second half of the year. however, the cfo noted that if there were fewer than three cuts, the first could benefit from that. and then, on the morgan stanley call, ceo ted pick addressed

concerns surrounding a reported multi-agency regulatory probe into how the wealth management vets clients for money laundering. that caused the stock to slide last week. pick said that it's not a new matter and that they have been having on going communications with regulators. he added that the costs associated with this are largely in the expense run rate. and lastly, we are here at bank of new york mellon. we just finished an interview with ceo robin vince. those shares lower despite reporting record revenue in this quarter. he said there is a possibility of no rate cuts and even rate hikes given the strength of the economy. guys? >> all right, leslie, thank you very much. leslie picker reporting. and two down components on the move. let's get to bertha coombs for those details. >> j&j, mixed quarter for j

johnson & johnson. quarter saw strength in sales of cardiovascular devices. in the oncology medications. sales of j&j's block buster sir rye sis drug missed expectations. ginn the big eps beat, well, j&j's guidance was lackluster, at least that's how most investors are viewing it. meantime, united health group's earnings report complicated by the financial impact of the february cyberattack on its change health care billing and payment systems, yet the health care giant beat on both the top and the bottom line and maintained guidance as they work to recover. the really positive take away on the health insurance side, medical costs and medicare among seniors appears to have stabilized at a high level, but the medical cost ratio of 84.3%, that's how much a premiums they're paying out in costs includes the impact of the cyberattack on claims and was pretty much right in line with

the guidance that united health had given. contessa, tyler? >> back to the stellara drug, i wonder whether that is such a high competition area that that may be one of the reasons that drug didn't meet the objectives? >> it is high competition. it will be facing some similars coming up. that's a big thing with a lot of these drugs. we have seen it with humera, which has had a slow ramp-up, but i saw one report that within the last few days that abvi medication has seen the bio similars really ramp up because cvs endorsed one of the sandos versions starting april 1st. we think those numbers are going to climb. >> very interesting. ber that couples, thank you very much. we have live nation feeling sort of like dead nation right now. dom chu? >> as live nation. taped nation.

so tyler, contessa, so the reason why the stock is dropping, it's the possibility of what an anti-trust case will do to that stock. it will right now be the biggest mover in the downside the entire s&p. you can see down 8%. those shares are down in large part because of that threat of regulatory action. this is according to a report from "the wall street journal" citing sources familiar. what they are saying is that they could, the justice department, bring an anti-trust suit against the parent company of the name sake, concert media brands, ticketmaster events ticketing platform. so the reason why they're looking at targeting live nation specifically is because they are alleging that the company used its dominant market position to stifle competition among smaller competitors. it's a story we heard before. the report didn't specify any of the detailed claims that would be brought by justice. but what we do know is that this is the latest development in what has been a year's long inquiry from regulators about just how much the entire live

entertainment business needs ticketmaster specifically to be able to function. now, it really got a lot more attention ahead of the launch of the pop cultural tour deforce, right, taylor swift's eras tour back in the fall of 2022. folks might remember that a high profile ticketmasters system crashed during the pre-sale of the concert systems for taylor swift precipitated a lot of the heat for what's going on here. >> and led to executives being called on the carpet on capitol hill. >> sure. >> now depositions. and what makes -- as you said, we have seen the doj interest in the anti-trust part of this for years. what makes this different? why is the stock reacting the way it is in what makes this more of a threat? >> it's because right now it's gone from a kind of theoretical line of questioning and investigation towards reporting this could happen imminently within the next month. that's what the "journal" is now saying. the ticketmaster platform is so much in focus right now is

because ticketmaster, the ticketing platform business at live nation makes up the bulk. i mean, the bulk of operating profits. >> for live nation? >> for live nation overall. >> what is their market share in ticketing? do we know? >> for some of the biggest venues in america, we're talking about roughly what's estimated to be 80% market share for those live entertainment produced events they have. to the operating profit generation, if you look at fiscal year 2023 for live nation, this is a company that made roughly 82% of its revenues, revenues, from producing live concert events. only 13% of revenues from ticketing. and only 5% from sponsorships and partnerships. but, when you look at the profit side of things, the biggest bulk of dollar profits, is generated by ticketing. even more so than sponsorships, advertising, and concerts combined. so that's the reason why the

ticketmaster platform is so much in focus right now. >> yeah. that's interesting. i would have thought that the ticketing fees would have been a higher percentage of revenue. i'm not surprised it's such a high percent of profit. because once you've got the infrastructure in there, you know, it's a fundamentally a no-cost thing to process tickets. >> to your point, too, if you want to talk about the other side of the business the biggest profit margins, operating profit margins, come from sponsorships and partnerships in terms of the dollar for dollar versus concert, preparation and production and ticketing. >> interesting. >> it's an interesting dynamic overall. >> thanks. all right. let's now tourn the markets more broadly as stocks durn a little bit higher right now, just a little bit, since the top of the hour. again, following a brief drop on fed chair jerome powell's remarks. he said there's a lack in progress on inflation, geopolitics continue to way on investor's miebds including on the mind of our next guest who

only sees one rate cut ahead this year. joining us now for more, scott clemens, brown brothers hairmen private banking. scott, welcome. we'll get to the broader market in a moment. i want to hone in on something that is in my notes that you said about geopolitical risk. that the developments that threaten sentiment and therefore price are one thing. and those that threaten fundamentals, i assume you mean by the actual operating of businesses, are quite another and those threaten value. would you explain those distinctions? why you consider them important and which you consider to be the biggest threat to equities right now. >> it is the most critical distinction that any investor, at least a long-term investor has to make is the difference between sentiment risk and by that i mean the daily price volatility that is a future of markets, it's not a bug. and the fundamental risk that

threatens either a company's operating structure, as you were just discussing live nation, the possibility of regulatory risk, the possibility of a hit to earnings, possibility of hit to the economy. those are the sort of things that worry me as a fundamental investor in the longer term. and so when i place the geopolitical risks that pop late headlines today into that category of sentimental risk, i don't do that to dismiss hem. they're very real and very serious, but just to observe the u.s. financial markets are reasonably resilient when it comes to developments abroad. via middle east, ukraine, china's wandering eye towards taiwan. those can certainly and should dominate news cycles. right now i consider those falling into the risk to sentiment. >> which if i'm interpreting you correctly would be a less long-term phenomenon than a fundamental risk to the companies and their businesses. let's go to your interest rate

outlook. beginning of the year, the working assumption was five or six interest rate cuts. you're down to one. why? >> two reasons. and i think they're both good. this may be a glass half full, glass half empty observation. the economy has proven to be more resilient and robust than we expected headed into the year. the strength of last year carried forward. adding hundreds of thousands of jobs a month. unemployment rate remains relatively low. the housing market remains relatively robust despite higher mortgage rates. in some sense there's no real call for the fed to lower interest rates. at the same time, there has yet to be enough improvement on inflation to warrant lower interest rates. and a lot of that really does come down to -- you and your colleagues reported on this -- the core measure of inflation and the stickiness of shelter prices in particular. i think unless or until we get improvement on that, we're in an

era of -- higher rates for longer. i do think by the time we get into the latter half of the year, enough improvement in core in place to allow the fed to cut once by 25 bases point. they priced in six rate cuts this calendar year and there isn't enough time left for six rate cuts almost. >> guys, it's so interesting what we're seeing happening while chair powell was speaking. you see this big crater about 130. and then a little after 2 your seeing a spike now in the dow. it's up at this point in the green more than half a percent. the interesting thing is when chair powell says, look, inflation is persistent. that he doesn't see cuts coming any time soon. you're seeing the markets kind of just shrug it off. what is there to be positive about when you hear that kind of

sentiment from the federal reserve chairman? >> well, to his credit, chairman powell and his colleagues, have been reasonably consistent in that. even though the futures market was looking for six rate cuts this year, if you go back to the december fed meeting and look at the so-called dot plot, the fed'sown analysis of how many cuts would be warranted, the fed itself was expecting no more than two or three. that at least was the sweet spot of expectations. but i think if you're going to take a glass half full approach to this, and i this is probably warranted, note that the discussion is not is the next move up or down? the discussion is when the first cut. so there's not any debate yet about the directionality of fed policy, only debate about when. and you have to believe, again, longer term investor, combination of decent economic activity, translating into decent corporate earnings growth, coupled with the expectation of interest rates falling at some point and at some pace, that's a pretty good

backdrop for investors. maybe not day to day. day to day is still a response to volatile news flow. but in the longer run, that's still a good underpinning to markets. >> what do you attribute the market's softness over the past month? >> tyler, i think it's just very straight forward that the market has come so far in a relatively short period of time that investors are maybe looking to lock in profits with individual companies, some who led the rallies. and i'll single out tesla as maybe the obvious, a stock that led the market this year -- last year, rather and is at the bottom of the s&p 500 this year. i think it's really nothing more than a response to a very sharp rally from about october of last year, which is about when people began to conclude that maybe the fed really was done raising interest rates and that the next move, when ever it was to come, would be doin. we're still very constructive on markets for this year for all of the backdrop and the underpinnings that we've discussed. >> scott, thank you so much for being with us. we appreciate your insights today. scott clemens.

coming up, markets appear not just to be shrugging off jerome powell's comments but also the rising tension the middle east, too. insurers, though, still see real risk for the global economy. we drill down on those threats when "power lunch" returns.

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well, of course the markets are working to weigh the risks of any escalation, but global insurers have been preparing for months, writing in cancellation clauses and war exclusions, insurance fees for shipping through the red sea or the suez canal are now roughly 10 or 15 times greater. aviation insurance skyrocketed and the industry warns the economic impact will spread beyond insurance and beyond the middle east. reed soyer, 22 year veteran of the u.s. army, you're coming at this with perspective that is badly needed right now. can you give me a sense, first of all, of what you're seeing as the biggest threat as we speak, not knowing what israel's next move is going to be. >> yeah. great to be with you contessa and tyler. i think the biggest threat that we see here is organizations

overwhelmingly are struggling in some cases underestimating geopolitical risk. the fact that they're struggling to understand what it means, how it can impact them and what those follow-on effects are to them and how that can challenge their strategy really is creating a lot of uncertainty and volatility in the environment as we think forward. really, this idea about do we have the right lens to evaluate what's happening in front of us. >> we're showing the big global reinsurers right now. of course, they may be bracing for impact more than the primary carriers because the primary carriers have limits on their exposure before the reinsurance kicks in. you're advice i assume would be different from those who have business the middle east that might be directly exposed and more broadly those with global business? >> yeah certainly, right. if you were directly exposed the middle east right now, these are all about what are your tactical actions, are you hedging your

increased cost and what is it about business continuity and how are you activating those business continuity plans to drive resiliency. when you step away from those that are maybe perhaps not immediately on the ground the middle east but because there's so much dependency with that part of the world, it's a different set of questions we really need to be asking ourselves, contessa. >> and then for global businesses, there's three dimensions you want to look at starting with supply chain. >> this becomes the most obvious beside from the energy impacts that we're seeing and the concern that we have over that. just think about what's happening in the red sea alone with proxy force, the houthi that's been attacking almost 40 plus ships in the red sea, where we see almost 20% of global container ships moving through that volume. but then because of these attacks, we've been witnesses almost a 30% increase in transit time. which means that the direct cost to shippers and to goods is increasing from that perspective but even as we think about what

are the longer term impacts, if this continues over time, we may see a 0.4% increase in cpi for oecd countries. let alone if this war spreads and moves beyond that. so the supply chain, contessa, is the obvious to mention. but i think we need to be tracing what those longer term and broader impacts are to our organizations. >> couple of quick questions. you mentioned the delays associated with having to transit south africa or however you have to go. are those delays and the costs associated with them, are those insurable? >> in some instances they can be. and it depends on how insurer has their policy structured. but again, these are the pieces, tyler, that organizations need to be thinking forward about these risks. much harder once we're the middle of a crisis than to say how can i lay this off to the insurance markets. >> question to, i get the risk from business interruption and risk to shipping. we mentioned in the introduction

that premiums on aviation insurance are higher. there has not been -- i mean, i remember when russia shot down an airliner not long ago, i believe, over ukraine. but, why would aviation risk be higher today? >> this is just talking about the broader availability of capital in the market, not necessarily tying to this individual issue, tyler, from that perspective. just the broader challenges we see in the markets from that perspective. >> you are also raising alarm bells over increased risk of cyberattacks. and i know you have a lot of experience in that area. that could then lead to more litigation for directors which would lead to increase in directors and officers insurance. what i'm really interested, reid, what you're telling your clients about resiliency. how dothey start to work that in? >> yeah. look, you know, cyber is not the most immediate thing we think of when we're thinking about the crisis the middle east, but the risk of the escalating attacks,

how we think about critical infrastructure, direct attacks on corporations, right, and again back to tyler's point about business interruption is certainly part of it. it's the broader long-term channels we see and the need for organizations to develop a risk. there's three points they need to think about from a broader perspective on resiliency. number one, they have adapt a portfolio view to risks that spans insurable and noninsurable. second and equally important, magnitude of risk increases and decreases and what does risk mean relative to top line. less than 17% of our global clients connecting risk and strategy. that's just the uncertainty in their operating environment, which means number three, i think most simply, thatdirects us to then adopt a hedging strategy to risk that prioritizes risk capital in the investment and how organizations are thinking about laying off that risk. >> reid, good of you to join us

and share your expertise and your perspective and your foresight. thanks. >> thank you. what a choppy day for oil prices as the white house weighs sanctions on iran following its attack on israel over the weekend. we'll get an energy report when we return. at ameriprise financial our advice is personalized based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice... i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial.

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welcome back to "power lunch." it's been a wild hour for the markets. look at that. look at that chart. >> that is a volatile chart. sharp drop, the dow, around 1:30, briefly in a negative territory. then we came back on the air at 2:00 p.m. the dow jumped. the contessa brewer effect, session highs up about 250 points. now the tyler mathisen effect kicked in and we're down only up by about 16 points. >> well, if that's true, should be steady eddy from here. >> we should split the difference here. see if there's a pippa stevens effect on oil. >> hi. oil is not doing all that much today as we have been discussing for the past 48 hours on air. everything now really depends on israel's response. u.s. officials told nbc news they expect that response to be limited in scope and of course iran's very well telegraphed attack did not intend to have this kind of blow-up into a

broad scale war. now, we did hear from treasury secretary janet yellen who commented on the conflict and had words about additional sanctions against iran. i, quote, fully expect we will take additional sanctions in the coming days and she said that all options are on the table. this does beg the question of what exactly are these options given that iran is already heavily sanctioned by the u.s. just the fact that we have been turning a blind eye. they increased their oil exports a lot and a lot is going over to china now. so as clay segel told me, the most effective way to get china to stop buying iranian oil is to enforce the sanctions that are already on the books. but there is not a lot of appetite for that right now given with oil at 90, gas prices are. nobody really wants to have, 2% of oil come off the market. >> and also the standoff in terms of culture wars that -- and economic battles that we're already having with china that this is one way that would increase that. pippa, thank you.

let's get to seema mody for a cnbc news update. >> we'll start in washington where president biden is returning to his childhood hometown of scranton, pennsylvania, this afternoon to make a pitch for higher taxes on the rich. his tour of the battleground state comes as likely republican nominee donald trump spends another day in court for jury selection in his hush money trial. trump called the case a disgrace and said he should be out campaigning instead. the transportation department announcing a new push today to protect airline consumers. the department says it will team up with 18 state attorneys general to investigate complaints against airlines of ticket agents. it comes as passenger traffic is projected to hit all-time highs this year. and as airline complaints have risen sharply in recent years. and six-time all-star, former number one pick in the draft, blake griffin announcing that he is retiring today. he played in the nba for 14 seasons, starting with the clippers before stints with the pistons, nets and celtics.

he made the announcement on social media writing that he's thankful for every single moment in his career. just 35 years old. contessa, back to you. >> wow. all right. thank you, seema. still ahead, going global. microsoft in its quest for sector dominance. we'll break down the details when "power lunch" returns. ♪

♪ microsoft is making a major investment into the abu dhabi ai firm g42. steve kovach is here to break down this for today's tech check. >> yeah. this is interesting deal. but let me explain the high level first. microsoft is spending $1.5 billion for minority stake in g42, an ai startup based in the uae. one of several that microsoft made in several months.

the move is designed to lock up another major customer for its azure cloud. as part of this deal, microsoft president brad smith will join g42's board and they will use microsoft's cloud to run its ai models. and additional billion from the two companies together will also go towards training a local ai work force. micro soft has a growing number of ai footholds around the world. just the last six months or so, $2.9 billion investment in ai infrastructure in japan last week. opening ai office in london, small investment in the french startup and $3.5 billion for data centers in germany. now, what microsoft gets out of today's deal, not just a stake in some hot ai startup, it's also a guarantee of more business for its azure cloud unit the middle east. the more ai activity happen on azure, the more money microsoft makes. a geopolitical angle also part of this deal and it's kind of unusual. the u.s. and uae governments are

on board with the deal after micro soft committed to secure development of ai with g42. but it goes further than that. as the u.s. tries to prevent china from gaining an advantage in ai, a congressional committee earlier this year flagged g42 for using chinese tech and suggested to the department of commerce it may need to block tech exports to the company. g42 later said it would not use chinese technology, opening up the space for microsoft to come in. and of course, it has the blessing of commerce secretary gina raimondo, guys. >> g42 was using chinese technology? >> they were. and they were involved in chinese -- >> they're a uae company? >> they're based in the uae. there are concerns for us here in the west. >> exactly. and so what we saw over the last several months was the u.s. kind of come in and flag that saying, hey, we might put some export

limits on what technology u.s. companies can do. and opened up this deal. >> correct me if i'm wrong, one of nadella's great signatures has been azure, right? >> 100%. that is, before this ai stuff, that was the business, yes. >> exactly. that was the motor of the stock price gains. as a percentage of revenue, what is assure, do you know? >> we don't know. they don't break it out. they lump it all in to their entire cloud business. they tell us how much it grew year over year but do not tell us from what base. but it's grown rapidly. there's some back of the envelope math people have tried to figure out what azure is worth. look, the big point here is we're seeing microsoft go all around the world and put these footholds in places outside of the u.s. where they cannot only grow -- get their head start in ai, but also drive more sales for the azure cloud business as well. that's really important to watch, especially ahead of earnings. >> well, also interesting to watch how the government's actions on being protective of our technology and national

security are giving business such a big leg up. and you know, it's not new, but there does seem to be onslaught of it right now. >> it's the chips act. yesterday samsung got the big award and intel. china is doing it as well. this has been gina raimondo's thing. keep a separated and competing against china and making sure these restrictions go in place so that the lead, at least the perceived lead that u.s. companies have, can be maintained. i would also note it's interesting because microsoft, they're talking about security and support. micro soth was taken to task just a couple weeks ago for some cybersecurity failures. it had hacked emails of government officials. not perfect reputation, but better than at least in the u.s. government's mind better than a chinese company taking over. >> steve, thank you. >> steve, thanks. still ahead, a host of new economic data out of china raising questions about the recovery narrative there. we will get a live report from beijing when we return in two.

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♪ welcome back to "power lunch," everybody. the markets getting a new read on china's economy today. and the numbers are presenting a bit of a mixed picture. eunice yoon is live in beijing with the details. hi, eunice. >> reporter: hey, tyler. the headline q1 gdp figure expanding 5.3% versus expectations for 4.6% from a year ago thanks to beijing's efforts to supercharge its manufacturing and sell those products overseas. the marched numbers rose question about the momentum. retail sails and industrial production both missed. new home prices fell at the fastest clip since 2015. and investment, as well as sales of property, which, of course, is a huge driver of this economy, both down in the double digits. a fixed asset investment, though, for the quarter came in stronger than expected. a lot of that money going into

the manufacturing sector as well as the efforts to promote chinese tech products, of course, much to the dismay of china's trading partners, such as the u.s., as well as europe, in fact, germany's chancellor is in china. and was quite critical about what he described as china's overproduction. china, as you know, has been accused time and again of selling products overseas while using state subsidies to then flood the markets with chinese products. >> what accounts for these rather sharp declines in hong kong shares and others today? >> yeah, well part is because of what's happening overseas the middle east. there's a lot of concern there. but in addition, people were looking at these numbers and were concerned. they were hoping to see more strength and more direction from the chinese policymakers. now investors are looking to a

big leadership meeting by the bureau, later this month, hoping for some signals. but so far the signals from president xi are that his efforts to really rely more heavily on manufacturing might not be going anywhere. he was defending china's efforts to supercharge its manufacturing, saying that china's ability to sell evs, lithium batteries, as well as solar panels is only good because it addresses global inflation as well as climate change. of course, not really mentioning a lot of the criticism that people have that china's state subsidies really harm a lot of the other industries in the world by being anti-competitive. >> all right. eu eunice, thank you very much and thank for staying awake all night to stay awake this afternoon. eunice yoon, thanks. a group of u.s. lawmakers is asking the nasdaq to delist blacklisted chinese companies.

emily wilkins joins us from washington. give me a sense of what's happening here. why do they want the nasdaq to take action? >> reporter: hey, contessa. yeah, these are lawmakers a lot of them on the china select committee. they have some concerns about some of these companies being listed. so they're encouraging the nasdaq to delist chinese companies basically on the blacklist. they're sounding the alarm that some chinese companies raised over 190 million while being on this defense department list of chinese military companies. and they're worried about the connections between the companies and, of course, the chinese communist party. congresswoman ashley hinson who led the letter, says the connections to china pose a risk both in terms of the u.s. military potentially using their technology and in the data that they are collecting in the u.s. >> it's chinese communist party protocol they have to share. it's the military civil fusions. there is huge risk here. it's why i want to work with the

nasdaq and other exchanges to make sure they're not offering these listings and putting them out there. again, it's a huge national security risk. we don't know how much of this technology that they could access within our own u.s. military going forward. >> reporter: the select committee priestly raised concerns about why companies like hesai use lasers to measure speed. the decision to place them on the list was unjust, capricious and meritless and have no ties to militaries in any countries. lawmakers are now requesting nasdaq to respond to questions about their policies around blacklisted companies within the next 30 days. and the congresswoman hinson said there could be legislation coming depending on what kind of answers they get back. guys? >> so now we wait and see how this back and forth goes. and how the lobbying and, quote, education efforts work from nasdaq toward capitol hill, right? >> reporter: i mean, yeah, tyler. i think we're keeping a very close eye on that.

i mean, another thing you have to consider here is that hesai has about 47% of the market share for these companies that use this laser technology. it's very common in evs. it's common in current smart cities. so that's another kind of aspect to keep an eye on as far as which companies are producing this kind of technology and how they're responding to this potential delisting. >> all right, emily, thank you very much. emily wilkins reporting from the capitol for us. coming up, we will check the charts on two names with bullish momentum and one our chartist says is headed for major resistance. it's time for some technical support when we return. ♪

>> welcome back folks. time now for some technical support. some big earnings out this week and we are going to look at the charts of three companies who have some technical levels worth watching. jessica, the director product at options play. first up this hour, procter & gamble. you say this has achieved a bullish break out.

describe it to me. >> that it has. you remember last year when tech broke out everywhere we had these beautiful cup and handles and procter & gamble has done the same thing. a period of consolidation and then it breaks out. >> that is the handle. i'll make you a better handle. we went from 155 up to 157 back in january 2022 which is what makes this break out. this is psychological at this point. there are a lot of people who hold the stock up to 155 - 157 level and if demand overcomes that supply we have a very valid support zone. you can see that's exactly where procter & gamble is falling right now so good earnings could be a catalyst to take it higher and the 26 represents this 26 moving average, representing two quarters. >> 26 is the gray line? >> yes. two quarters worth of pricing which is indicative of the

order over quarter earnings prices going up so that's a good sign. i want to see that maintained and more importantly that 26 weekly moving average. >> love the company handle. >> american express bullish on this one as well saying trend momentum is fading trending a catalyst. >> you can see almost a similar pattern where we have this very clear area of resistance here. it was old resistance and now it's new support. once we've gone through that you see this candle right here? that is a good indication of momentum when breaking through what we were looking at with procter & gamble so i think it's a very good example. two - 188 around october 21 but what is important here? i've switched the moving averages. this is the 13 weekly moving average. a little more volatile because it's more recent prices. that is exactly support right now. >> what is a candle? >> that is the wic. this is a different type of chart. these are weekly intervals so a candle, the wicks here are the

high and low for the day and then if it's filled in that means it's actually read and that's a dead day. the hollow one is an update. it tells me a closed higher than it opened on an update. visual representation. that's a great example because that is a candle where it opened -- or, it closed higher than it opened and you can see the momentum which is a weaker range. it's important to define what that is to show how this is really a beautiful chart that's on the 13 weekly moving average which is one quarter worth of prices. we have another quarter coming in and if this falls below you will see what happens. >> let's move on to netflix and this one is showing major resistance. tell us about it. >> this when i added a little more time frame. the 13 weekly moving average, one quarter worth of prices. you can see how this clearly acts as resistance here here

and here, and once it turns we get into a beautiful upward trend which is what we look for in a series of higher lows and higher highs. but if we were to draw a straight line around this area where we are currently finding major resistance around that 640 level, that is exactly when this trend turns. it is converging with the 13 weekly moving average and when the candle fell below that, it closed lower than it opened and then really had the downwards momentum so that is why it's a very key area of resistance and we have to overcome in over to keep the bullish momentum or we may turn downwards like we did earlier. we have to watch the dollar saying that it is flagging major resistance consistent with downturns. explain. >> if we were to draw a straight line here, 106 - 107 i call this the danger zone within the s&p 500 looking at a

weekly view. >> is that it? >> this is the s&p 500 and this is the us dollar. the dollar index. when we get into this trading range here, the dollar is moving higher. it is consistently with downturns. what i find very interesting, it is very clear when we go here the market suddenly turns and that is happening right now and even today you can look at the price action of the dollar and what is occurring with the s&p 500. this is a pattern from a technical point of view. we look at series of patterns occurring over and over which is indicative of strength of the trend since this has happened multiple times and we will drive some attention to this because as it has gone into this range-- >> what is it telling us?

>> it's telling us we have major resistance coming up for the dollar. if we do not overcome 107 or f we do, that could be very bad for the market and has bearish implications. >> for the equity market? >> for the equity market. >> jessica inskip, thank you. >> contessa? >> thank you both. listen to power lunch on any streaming service and we will be right back. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education.

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♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪ >> what you do with less than 60 seconds? let's get other stories you need to know. construction of new homes fell by the greatest percentage in four years last month according to the commerce department. housing starts fell nearly 15% year-over-year in march and the sharpest drop since april since april 2020. it is bad news for homebuilders. >> are people staying put because they don't want to have

to take out a large mortgage or pay the extra premium for a new home? whatever it is it's not good. >> for sure it is. >> according to the new york post, the power lunch is back in the big apple as manhattan office buildings reopened for business. new data from placer.a i found that for traffic at new year's office buildings was down 17% last month from march. >> bad news for expense accounts everywhere. >> that will do it for power lunch. thanks for watching. welcome to closing bell. i'm scott wagner live at the new york stock exchange. -- scott laughton or. interest rates continue to move higher and we will ask the experts what the breaking point for investors might be. bank of america ceo coming up in just a bit and is going to weigh in on that question. in the meantime take a look at your scorecard with 60 minutes to go in regulation. not much steam behind the major averages. the 10 - year moving closer to 470 and speaking within the