builders? lennar is at an all-time high. >> apple is the first time above $190 since february 7th. that's where that stock sits. it's helping the dow to a new closing high. we'll see how it plays out over the final hour when i see you at 3:00 eastern time. "the exchange" begins right now. ♪ ♪ >> thank you very much, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead on what's shaping up to be a banner day for the market. stocks are surging and yields are lower after the inflation report cooled. the ten-year dropping back to 4.3, touching its lowest level since april 5th. our economist nailed the print and said may's number could show more relief. he'll tell us what that means for the markets and the fed's next move. the lower yields are boosting home builders as we just heard, vis-a-vie lennar. but there are signs demands

might be slowing. so we'll discuss that. and ai getting aggressive. google is announcing a new assistant and a search overhaul. two key departures from openai, and amazon replacing its ceo as jeff bezos keeps a close eye on their efforts. we'll dig into the rapidly evolving landscape. let's start with the market action, show. dom chu, i think we're going to see a lot of stars today. >> the markets are as green as dress as that dress you're wearing, kelly. what we have is, yes, record highs for both the s&p 500. we'll put the star right up there right now, and the nasdaq composite right now. so all-time highs there. the dow currently sits at a level that could be a closing high. but we're roughly up 50 points away from its own record all-time intraday high. so the dow industrials up 285 points, three quarters of 1%, 39,843. 5292, pushing 5300 mark.

up 351 p -- 51 points. so highs of the session for the s&p 500, almost just a hair away from 5300. and the nasdaq composite a record high, up more than 1%, 186 points higher than the come poise it index. that's at 16,697. interest rates, a big part of the story today. i'm going to show you one part of the yield curve. the benchmark ten-year treasury note, it's now about 4.34%. so drifting lower, and that near term trend has been to the downside in yields. whether or not it stays that way remains a big question, but the ten-year notes a big reason why some of these mega cap tech stocks are doing well. and i just want to show you the market action right now on the mean stocks. over the last couple of days, maybe month or so, we have seen some volatile moves in some of these names to the upside.

today, gamestop shares are dropping about 31% of their value. $33.43. amc entertainment shed a quarter of its value. and koss down 23%, as well. all of these very big downside moves. again, let's put some of this context around it. check out a one-year chart of gamestop. the longer term trend had been to the downside. that volatility spiked up to here. one point yesterday in the premarket, this was an $80 stock premarket. we're sitting at $33.40. this is a buyer beware situation. >> the headline that stocks overall are doing as well as they are. let's dig further into the cpi print and what markets expect from the fed. steve liesman is here to break it down. steve? >> hey, kelly. yeah, we just got some fresh gdp tracking numbers in. first, cpi, a bit cooler in april. nothing to send the fed

scurrying to cut rates, but enough to rally stocks and bonds to keep the idea that rate cuts are possible and still on the table this year. coming in 0.3% versus 0.4%, on headline and core. that makes that down a tick from 3.5. the score at 3.6 from 3.8. down two ticks. it just reverses the direction. we had a little bit of expected price decline in used cars and trucks. air airfare, down 0.8. medical care, better than last month. motor vehicle insurance, still high. that's a big number right there, but less than the bigger number we got last month. the super core of the inflation gauge watched by jay powell looks at just the service sector without food, energy, and housing. it did tick down, but remains elevated. you can see it back to where it was in the prior month. taking the ppi and cpi into

account, barclays saying the fed's inflation indicator will come in at 2.78, unchanged from the prior month. so retail a big goose egg, a big miss there. march revised down to 0.6%. so the miss and the downward revision in those retail sales prompting a down shift in gdp tracking for q1 by about 0.4 of a point. so q2 estimates remain strong at an average of 2.8, but down 0.4%. so we'll talk with tom barken, richard fed president, tomorrow at 10:00 a.m. maybe we'll run some of these questions by him about the strength of the economy. >> steve, stay with us, as one of our next guests nailed the numbers this morning, calling for cpi to rise only 0.3, which it did, paving the way for the

fed to potentially start cutting in december. joining me now is the head of u.s. economics at bank of america and john porter from newton investment management. welcome to both of you. to all three, really, include you in that, steve. michael, start things off for us. i'm listening to steve, and gdp is still growing, inflation is still in the range of 2.8% by the fed's measure. why are we talking about rate cuts still? >> well, i think because the idea that economic momentum will be gradually slowing and the fed will view falling inflation as a sign that their policy may, at some point, become too tight. so it would be a cutting cycle about following inflation lower. but i think to steve's point, this number should give the fed some additional comfort and be welcome relief. i think it reduces the concern that inflation is reaccelerating. so i think what the number does is take the risk of hikes off

the table. i'm not sure if they're that much closer to cutting in thor in term. >> john, do you agree with that from a market point of view? >> i agree with michael. the biggest risk to the market right now is that the fear of a rate hike rises and certainly today's report marginally takes that off the table, at least for now, at least until the next data point. as the charts show that steve walked through, there is improvement really across the board. so we're not at the fed's target level for inflation, but headed in that direction. that's a very positive from an equity market perspective. >> do policymakers think inflation will go from 2.8 to 2% on its own without any further restriction? >> yes, that's the plan right now, kelly. that is the -- what do you want to call it? that is the game plan by the federal reserve. they believe that if they exert

pressure at this level for a period of time, that they will get the outcome that they think. that's what they think right now. that's why the april number is important, because it sort of -- it leans against this idea that maybe the fed was not tight enough. we just had the minneapolis fed president talking. he was saying, look, maybe what we have discovered is we don't have too feet on the brake pedal, we have one foot on the brake pedal. maybe that's enough, maybe not. we'll see. the idea being, if inflation had continued to stay elevated and/or keep rising, that would have been further evidence of the fed not being tight enough. i think april, at least for the moment, for the month, dissuades that. >> michael, why do you think may could bring us better news? >> well, some of the volatility in inflation are the upside surprise in inflation in the first quarter was statistical and not real. we're not saying it was all statistical.

i do think there's signal in it. but as we move forward, i think some of the seasonal factors will be more important. but i think as steve was mentioning, monetary policy is tight on the margin. we can debate how tight and how restrictive, and the economy is receiving a positive supply shock from a rebound in the labor force. both of those in a baseline sense keeps inflation moving lower. we think the translation of the ppi and the cpi data this week into core pce at the end of this month could bring us a 0.23. so, again, a directionally improvement, not where the fed ultimately wants it to be. but on the margin, more improvement as we go forward. then i would say beyond may, kelly, looking further out at some point, we do think shelter inflation will take a step down. when that does, it will be very important, given its large weight in inflation and can offset a lot of bad outcomes elsewhere. so i think the timing of the

cuts -- >> hey, mike -- >> -- when services come down -- yes, steve, sorry. >> let me do a little quick reporting here. year over year on pce, does it come down? >> i think we're right on the edge of that, as kelly was saying. i think we're going to be close to that two-way. in fact, i think the sideways kind of the year on year rate of core pce is what we're looking at for quite sometime. >> john porter, let me turn to you. steve, go ahead. >> i was just going to say, i don't know that's going to hearten the fed and move them more towards cutting if it remains the year over year at 2.8. a little improvement in the month over month. sorry to interrupt. >> that's why i am kind of wanting to go further and push the point. john, talk about market strategy

in the midst of all this. you're still sticking with nvidia. we heard a lot of big investors trimming that lately. tell us how you expect this dynamic to evolve in the coming months. >> i think for the broad-based market, this is as good of a backdrop as we can get. there's a decelerating trend in inflation. the absolute level is still a little higher than the fed would like, but the inflation trend is improving. simultaneously, we're seeing improving earnings across the board. s&p earnings for the first quarter came in 7%, 8% ahead of expectations with essentially every sector beating expectations. so there's broad-based growth. certainly, this is a large-cap tech role. we're seeing the continued strength and momentum in the large-cap tech stocks. nvidia is certainly leading the way there. on a short-term risk/reward

standpoint, it's challenging. they report earnings next week. we need to look at how ai is being implemented. >> nvidia has already doubled this year. so there's more in that basket. and steve and michael, just finish us off here. we're talking a tblt prospect that inflation can come down to the 2% target without anything further from the fed on its own, even with a growing economy. fiscal, we can expect to be accommodative going into the election. michael, other than rents, anything that you think will get us significantly back to 2% of the near term? >> i think that's the -- you hit on the major point, that the fed said declines in good prices, which we got this month, isn't going to be enough. that they need services

inflation to be more in line with their target, when that goods deflation ends. i think the major component of that services story will be what happens with shelter. once that does tick lower, you get a couple months of that, maybe they can say yes, the new trend is there. we don't have the fed cutting until december. in part, because that high year on year rate of inflation in the second half of the year and what we think from them will be an upward revision of their inflation forecast in june will make it hard for them to start in sent. so i think it is later than perhaps markets may be thinking. >> steve, final word? >> yeah, just two things i would add to what michael says there. the possibility -- look, we did zero on retail sales today. so if the consumer does weaken, you could get a better response, even in the service sector in pricing. it takes a little longer to show up there. but a weaker consumer, discretionary services could come down a little more. the other thing is i believe the

fiscal impulse is supposed to wane over the course of the year. so that is something that could help inflation bring down a bit the growth rate. so those are two things that could add to the momentum of inflation coming down. >> gentlemen, we'll leave it there. thank you all so much. appreciate your time. coming up, mortgage rates are below 7% finally after that cpi number this morning. but one trend watcher says we've already seen three starts towards lower rates. will this time be different? we'll ask him about that. shares of alphabet nearing a new all-time high after google rolled out its new ai model yesterday. we'll hear from the alphabet ceo and look at the shift we're seeing. "the exchange" is back after this.

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welcome back. more signs of that seven plus percent mortgage rate pressuring housing. purchase applications for the week ending may 10 dropped 2% from the week prior. home builder sentiment dropped in april for the first decline since november to be at the

lowest level since january. the falling yields are giving the builders a boost today. the itb is up today. wells fargo hiked its price target to $150 a share for toll brothers. joining me now to discuss what's next for housing is matt graham, chief operating officer at mortgage news daily. as we just heard, joe says he thinks lennar isbreaking out to new highs. could this status quo remain the status quo for quite sometime? >> it's hard to say when it comes to home building. i'm more of a rates guy, so i think if we do get some relief in rates, it will help both sides of the spectrum, purchases and refinances. >> what do you consider a ten basis point drop or something more significant?

>> i think something like a 1% drop. we've seen more than ten basis points just today after the cpi data. >> i think as long as we get below 7% at this point, people feel like it's not the worst thing. >> people have definitely acclimated to this new rate range. when we first got to this range, it really shut off volume quickly. now people understand that rates are higher, and people that need to buy are buying. >> i like how you said more broadly, we have seen this before. people starting to celebrate, mortgage rates are going down. we've seen three false starts in that direction already. do you think this could be another? >> it's sort of in progress, right? it depends how you want to define a false start. if we define it as early 2024 with rates moving back up after a really nice improvement at the end of 2023, yes, it's a false start. but there's a case to be made that you want to set a line with the previous high. and you only say, well, it was a false start if rates break back

above that previous high, which they haven't done yet. i think there's a chance any way that late 2023's highs in october specifically, could be sort of a high water mark that was driven by a little bit of excessive defensiveness and fear. all that is predicated on the hope that inflation, core inflation stays below a monthly rate of 0.3, 0.2, and in that case, we are definitely seen the highs in late 2023. >> the larger takeaway is as long as rates remain where they are, people are going to stay put in their existing homes, and that leaves the home builders to pick up the slack. i don't think, like you said, it would take a big move one way or the other to break us out of that long-term trend. >> yeah, absolutely. home builders has been the only game in town with rate where is they are right now. and there's been increasing predisposition for people with super low rates to hold onto

those rhomes, even if they move. so that puts constatements on inventory and pushes the ball back into home builder's court. >> as election season heats up, i wouldn't be surprised to hear about bringing housing costs down ore make it more affordable, those kinds of things. are you hearing anything like that? is the market hearing anything like that? >> there are a few sort of -- i would say it would be inconsequential things floating around. i don't know what to expect when it comes to the recent suggestion that bernie mac be able to buy home equity lines of credit. there have been some criticisms of up-front mortgage costs, which is interesting because in a round about way, the government is driving some of the things that create those up-front costs. you know, it's really hard to immediately and quickly alter

the cost of financing a home with government initiatives unless that initiative is somehow guaranteeing a lower interest rate. >> right. that leaves us with just the two adjustments or two levers to pull, which is the price overall, and the cost of borrowing in order to fund that. so if you look out into the playbook for the fall, as the market starts to think about whether the fed is going to cut in sent, or maybe december as we just heard, how do you think that will affect mortgage rates? >> yeah, i think that mortgage rates will lead the way, if they sense that the economic data is going to give the fed the green light. it's not just mortgage rates, but treasury yields, other long-term debt that trades, you know, moment to moment, opposed to the fed. the market does a good job of getting ahead of that. we'll see long-term rates move lower even though the fed is moving the shorter term rate. >> for now, matt, thanks. appreciate your time today.

>> thank you. >> matt graham with mortgage news daily. still to come, boeing is the second worst name in the dow on this strong day and also this year, trailing intel and facing new scrutiny from regulators who say boeing violated an agreement protecting the company from facing criminal charges relating to those two fatal max crashes. we have the fallout and who is t most risk ahead. as we head to break, here's a look at some of the names hitting new highs, including bath and body works, texas instrawments and boston hexcng iba a. "t ehae"s ckfter this. new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

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since 2018 today, believe it or not. plug power is struggling to hold on to yesterday's 19% gain after receiving a loan of $6 billion. it is a lifeline from the company, which has been burning through cash and they'll use the cash to build six hydrogen facilities. this is one we highlighted earlier this week. this news had the potential to create a short squeeze. today, down 1.5%. coming up, shares of boeing are lower after the doj opens up the possibility of criminal prosecution for its role in the two fatal 737 max crashes, saying it violated a deal. we'll have the details and what it could mean for boeing's leadership next. tune in tonight at 8:00 p.m. eastern for the full interview with israeli prime minister benjamin netanyahu. here's a sneak peek.

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welcome back, everybody, to "the exchange." i'm tiletime with your news update this time. a jury of 12 now neated in the federal bribery trail of senator robert menendez. opening statements set to begin this afternoon. menendez and his wife are accused of taking hundreds of thousands worth of bribes in exchange for official acts. the democratic lawmaker has denied the charges and pleaded not guilty. uber announced a big update, including shuttle rides and a flood delivery partnership with costco. uber will let users reserve seats on local shuttle services to take people to places like concerts or the airport for a fraction of a price. and costco will become an on-demand option with uber eats in select locations around the

u.s., and members will get 20% off of uber eats subscription membership uber one. there you go. and new research out today in the brits journal of surgery showing having a female doctor could lower the risk of death or health complications compared to mael counterparts. it's the latest of several studies that show similar results. kelly, back to you. >> tyler, thank you. the department of justice claiming boeing violated the terms of a deal to avoid prosecution following two 737 max 8 crashes that killed 350 people five years ago. phil lebeau has that story. >> this was a deferred prosecution agreement that the doj says that boeing has violated. so what does that mean? essentially, the announcement that came out late yesterday says that in the eyes oh of the doj, boeing violated the criminal settlement agreed to in 2021. the specific terms within that

agreement that boeing had to meet over the course of the following three years. we're not even three years later, and now the doj, following the incident with alaska airlines and the door plug blowout is saying there could be new penalties and new restrictions. the doj's focus when it comes to looking at boeing is whether or not the company failed in its compliance programs, which were supposed to be put in place following the deferred prosecution agreement, as well as with ethics programs. in a statement, in response to the doj saying there may have been a criminal violation, boeing says -- >> they have until june 13th to respond as you look at shares of boeing, under a little bit of pressure today. the company is holding its virtual annual meeting on friday. i'm not sure we're going to hear a whole lot of commentary from the new chair or from dave calhoun, who is the ceo of boeing, at least through the end

of this year. that's where we are in terms of boeing has until june 13th to respond, kelly. and then we'll get a better sense of what the doj believes is the appropriate path forward in terms of greater penalties, restrictions on the company. do they say look, we're going to put a monitor in place at bowing? all of these are options that may be on the table. >> what would be the consequence it is the doj is looking into them and what possible punishment they might face, and what perhaps they avoided facing last time around through what sounds like a negotiated settlement where they agreed to behave in a certain way that now the doj says they didn't. >> that's the point of deferred prosecution agreement. it's a way for the government to say we want to make sure you correct your behavior, so we're going to lay out these terms. and there was a $2.5 billion fine as part of that agreement. the doj believes boeing has not lived up to its obligations, so perhaps the doj says you know what? maybe we need to be a little

more restrictive and put a monitor in place. there are companies that have gone through this process where the government says we're going to put a monitor in place who is going to make sure you're doing what you're supposed to be doing. so there are a number of options out on the table right now. of course, it remains to be seen what boeing negotiates with the doj. i mean, this is not a complete, we say this, we say that. you know, they're talking with each other. >> what would be the implication for the business leaders, whom everthis was agreed with? >> you have dave calhoun leaving at the end of this year and the board picking a,000 ceo. there's been some changes on the board. is it possible that the doj says, we're not comfortable with the leadership even further. that's a possibility, though i don't think the doj wants to go down that path, because then you get the government really getting into the business of picking business leaders for particular companies. so i think that is not likely. i think more likely the option

is greater restrictions in terms of what boeing has to live up to. and keep in mind, kelly, they could have put the deferred prosecution agreement extended for another two or three years. so that they continue to have oversight of boeing. >> interesting. so they sound like they're going to be more involved one way or the other. again, investors sending the stock down 31% this year. phil, thank you very much. shares down 1.7% today, coming up, netflix giving up gains after taking its first true step into live sports. it will be dreaming nfl games on christmas day for the next three years. the shares are still up 11% in may. it's their best month since january. we'll look at the impact on the ad market and the streaming landscape, next. and cnbc is celebrating asian america and pacific islander heritage in may. here is the ceo and krfx nbc

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google search by the end of this week. google says every user in the country will have new ai powered search features at the top of their results page. just one of a number of products the tech giant announced yesterday, including improved ai models and ai assistant. deidre bosa spoke to google's ceo about this. deidre, i have to note, the shares at all-time highs. this is finally the market response google was hoping for all along. >> i mean, it's been a bit of a misplaced narrative, each over the past year, that google has fallen behind in ai. when you look at it since november 2022, that's when chatgbt was released, it's been neck and neck with microsoft seen as the leader here, maybe a little higher. so google has been doing fine. so what it did yesterday is fully embrace generative ai. we have been talking about search generative experience. remember, that's like the ai overviews you were getting served, sometimes, sometimes not. it's expanding that to every user in the u.s., reaching over

a billion google users by the end oh of the year. so in this way, google is trying to embrace generative ai while not totally throwing off the traditional search model. in some cases you'll get the blue links. in some cases you'll get the generative ai answer. but what this does is change the business model. advertisers have been playing for that prime placement above the fold when you search for something. that's a way of reaching users. in some cases they will be pushed down. i asked the ceo if he has prepared advertisers for this moment and what he thinks will change. have a listen. >> you know, the great thing is users still vl commercial information. our ads work on quality and relevant at the right time. we've been able to test that in the context of ai, and it's working well as we expected it to. so i think it will be a small transition, and that's what we are seeing.

>> kelly, i also spoke to google's new head of search, liz reed. she said there's going to be new ways to monetize. this is essentially an experiment that was doing -- being done in small and beta mode over the last year or so, being brought to everyone. so we'll see what the implications are later this week. the other interesting announcement was this idea of a new ai agent that you can converse with, that can show emotion, that can reason and remember things. so it feels like a new leg of this generative ai race is kicking off. and right now it's certainly google and openai that are battling it out. >> to your point, it feels like the drumbeat is picking up. it wasn't just google announcing big changes. aws is getting new leadership, and that ceo change is seen as putting the company on war footing. and the co-head of openai's super alignment group that was focused on making it's

artificial ai match up with human interests, they're leaving the company. the message here seems a little more aggressive. >> more aggressive and more urgent. certainly, we have seen that from the google side. the ceo has been saying for the last year plus they have to balance being bold with being responsible. but what we have seen really over the last few months is more boldness. he says he's doing it in a responsible way. that might be true, but the more technological advancements you have, like the ones we saw in terms of the ai agents from both openai and google, the more opportunity for mistakes here. but they're aiming to put these into their user's hands. right now, rolling out more and more features over the last year. what happened at openai back in november that ousted sam altman was thought to be this push and pull behind developing response wli. that feels like a conversation that's fallen to the wayside, especially with ilya leaving openai and some of the other

folks that advocated for more responsible development. you mentioned the example at aws, with jeff bezos continuing to be involved. at google, you saw some of the founders there yesterday. so it feels leak it's all systems go, and it is a very urgent moment, because this is the most important platform shift maybe in our lifetimes. >> who cares about humanity? come on, they've got to win. >> exactly. >> deidre, we appreciate it more. let's discuss more. joining us onset, mountain ceo mark douglas and julia boarston. google has been the go-to place for digital advertising for 20 years now. if it's changing, what could it open up? >> look, i think you can't underscore how massive the google search business is. more than 2 billion people use

it, responsible for $175 billion in revenue last year. and the ceo was optimistic that this would not change the way people click on things, but there's no doubt to me that if their product, if their search product becomes so much more conversational and so much more effective, people will be clicking less. i think the question ultimately for their revenue standpoint is whether the search is so useful that you have advertisers willing to pay more, because they know that they're going to be reaching the consumers they want. >> mark, you seem to be able to peek around corners. my larger question is as this migrates to voice, that ultimately, i'm chatting with siri or google and getting them to help me complete my task, how does advertising fit into that at all? >> it's not clear about that. google probably has more lawyers ready to go than engineers. if you are now using features

like ai overview and summarizing content that you previously clicked to, how is that not a copyright violation? so now somebody is going to have to get paid or google is going to get sued. >> how have we resolved these issues at all? when ai first launched, there was a bunch of publishers that said this is based off on my data. >> openai has started to make these deals. they just made a deal with "people" magazine, food and wine magazine and they want to ensure they're not facing lawsuits and people can click to a link to find a recipe or the original article rather than just a summary. but the big question is whether the ads fit into this. where do the ads fit into this? if you're having a conversation and not clicking to read an article on "people" magazine and i say tell me what the recipe is and tells me how to make something, i'm not seeing the ads. >> right. i've always said that at the end

of the day, people don't go to google to get ads, they go to get traffic. if they can get the traffic without the ad, they would take that all day. so what julia is describing is essentially that scenario, where the summary, if they get past the legal issues, leads to still going to the decimation, and know the summary becomes the ad without the brand having to put it there. >> or the way i think about this, if i were a company and i said i just want my summary to make it up there, but to the user, does that undermine the experience? you want the best answer, not necessarily the one that was paid for. >> right. so the answer itself, which is so -- remember, there's always a publisher and advertiser. so the answer comes from the publisher, the person that wrote the content. so let's use the food example, but now i want to cook that food with my brand. that becomes more engrained in the content. that's how you start -- it changes it from a set of links

to its product placement. those kinds of ideas come to the surface. >> but there's no doubt what google is doing, and also openai, is going to change the business of search. meta talked about its conversational search engine, what's effectively going to be a search engine and how they will be potentially, i would imagine, able to put ads in there. so in the next couple of years, as google says this product is going to be reaching a billion people pretty soon. we are going to see a new format of advertising different from what we have seen before. >> people want to be integrated into the retail experience, for example, so there is a a lot brewing behind just the google component. traditional tv is not the advertising power house it once was. so it feels like this inflection point for the whole industry. >> traditional tv may not be. we have certain categories still strong, like sports. sports is incredibly strong in

terms of viewership and advertising. and if you look at the streaming video market, digital ad spend this year of the past couple of weeks, we saw digital ads up 32% over last year. so up to 16.5 billion. >> they say, i don't know if i'm calling it tv or youtube or whatever. but, i'm still seeing ads with my video. >> the odds are still there, because they finance creating the content. then you can't really separate the two. i think one thing also is the business model is so purely a profit generator now.

people forget to 60% of revenue is you typing in the name without putting.com on the ads. right? so, i don't see it as necessarily being as profitable as it's been. so, if i'm an investor that's what i'm worried about. and the pace of this is only a year into ai. so, this is moving very, very fast and it's going to affect the economics. >> maybe some of the advertisers hang out in places like the online video market with a lector not going to see as much disruption for now. we appreciate your time today. coming up, we got the action. the story, and it's right on the cisco, walmart, and under armour. don't go anywhere. don't go anywhere. the exchanges back after this. and that person... is impossible to replace. you need clem. clem needs benefits. work with principal so we can help you help clem

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welcome back. we've got computing, the consumer, and corporate leadership story lines in today's earning exchange. here with our trades is. founder and ceo. it's good to see you again to llano. welcome. let's start with cisco done around 3% so far this year. morgan stanley noting some

headwinds like muted networking demand increase cost from the splenic acquisition, and ai investments. what would you do with the stock here? >> i think we talked about this a few minutes ago. since then the stock has dipped a little bit. so, if investors were buying at the time it's a good time to hold. i still think their leaders, and a lot of their markets. there are still some steady growth in those core markets. if you're looking at network security collaboration those areas are still strong. so, i would be holding the stock. >> let's move on to walmart. shares up 13% to start the year. dave announced 100s of corporate layoffs. is there too to bring more employees back to the office. one of the analysts will forgo watching grocery and traffic in tomorrow's report. what would you do with walmart here? >> so, i think walmart is where you look at its pipeline growth. it's been performing relatively well. i think now investors are nitpicking, and seeing if they could use technology to make supply-chain and operating efficiencies much better.

does of the areas i'm looking at. i'm buying walmart here. i like the stock. we have many growth opportunities with walmart. i like the stock. >> let's go to under armour then. it's down more than 20% this year. the pharmacy overturned to the home on april versus partners. slowing web traffic in their direct to consumer business. but, they say athleisure demand remains strong. can under armour turn things around? >> i think they can invest. i would still wait for little bit, and see how the strategy plays out. they do have initiatives, and strategies there were not. you just mentioned direct to consumer growth has been a high competitor since 2016. also, topline bottom-line growth.

but, for now i'm watching the stock still for now. >> watching, waiting. what are you doing with the market more broadly? looks that were going to have a couple new highs today. s&p? nasdaq? >> we do have patients looking for the markets over. we see choppiness coming to the market. i've seen today's move, and i think it's a little bit based on obviously the data we got from cpi's investors. i like what investors from our standpoint, the healthcare department. he stretched in the evaluation. they are still pumping out cash. still returning to shareholders. so, we're looking at those opportunities to see if there's any pullback going forward. >> all right, 40 points short shy. and about 100 and change from 40,000. that's going to be back in the conversation believe it or not. thanks for your time today. we appreciate it. >> that does it for the exchange. coming up next on power lunch.

neo bleeding test led to the affordable ev ties. i'll join you at the other side of this break.

good afternoon everybody. welcome to power lunch. alongside kelly evans i am a tyler mathisen. cpi otherwise known as inflation dropping slightly. core inflation at its lowest reading since 2021. plus, the white house is