♪ ♪net. good day, everyone. welcome to "power lunch." alongside kelly evan, i'm tyler matheson, and thank you for being with us on this historic day for the markets and the dow hitting 40,000 which means it's taken more than seven years to double from the first time it crossed 20,000. >> it's like the rule of sevens. and the s&p 500 and the nasdaq are both hitting record highs

today, as well and while those big round numbers are nice and they do get attention, we'll talk about what they really mean. we turn to michael santoli for more on this historic milestone. mike? >> kelly, the more indexes make a new high when we have been rallying the better to lend credence to it. in terms of the actual round number and the 40,000 there's mental accounting involved. i do think people have a general sense of where the market is and you flip from three to four on the odometer and you notice that the market's been doing well. i don't expect this level to have any particular relevance in terms of creating a barrier that would last a long time aside from the fact that the dow's up 5% in two weeks and we have had a nice sprint higher to recover those losses from the april pullback, it seems like it's not necessarily something that should stand in the way of further gains or for that matter cause a flush of new money into the market. >> i wonder, mike, as well if people will look at this and say, you know, that this makes

them feel more like they have to run into the market and with the cash on the sidelines or more like they missed the move and the constant and the gnawing sense of i want to be the one before this new thing turns lower. >> there's always that sort of caution and the way people check themselves and feel as if they wished they owned it when we were at 30 and now it's at 40. however, doing this a long time, higher prices are a formula for getting people to want to be involved. they feel as if they basically, the fomo overcomes that cautions. that said, i don't know that we're going to see some kind of dramatic effect. i've never been of the mind that looks at the supposed cash on the side lines and says hey, that's potential energy for the market and most of the money is not really about to enter stocks necessarily. it's just a cushion, and what i always say if you've been involved in any respect in the equity market and maybe you have some bonds and cash. as the equity market goes high are you don't have to buy more and the market did its ro

advertising into equities in a sense. >> very interesting. i couldn't agree with you more. we hear the whole time about the old saw of having money in the sideliw highs instead of selling in may and go away, maybe buy in may and rule the day. brian chief economist. always good to see you. you think there seais more moneo be made in this position. >> thanks for having me. here at annex the way we're looking at it in our investment committee is earnings expectations continue to rise and so that is actually something that seasonally speaking back in april, earnings expectations typically thawed and they began to rise and that's showing that the sell side maybe has still been a

little bit too negative on the broader market. and so we could see some continuation of this rally. i know the old maximum is sell in may and go away, but it really doesn't pay off in the near-term or even over the longer term if you think about what we are likely to encounter over the next few months for any decent economic data the fed probably is still saying that they're in this pause, really we just need to wait for the earnings magic to work itself. >> i'm going to ask a question that may be off point. i was having a conversation with a viewer earlier today who pointed out that when the 2017 tax cuts came in, basically, was there a 40% reduction in the corporate tax and the highest marginal corporate tax rate and profits have risen now by well over 40% since those tax cuts came in to play. how much credit do the tax cuts deserve for helping lift this market to where it is today.

>> that's an interesting question. we've looked at some of the data as far as the effect that the tax rate has on growth and it's a mixed picture, as you would expect. there is not a definitive answer, and it is nice that corporations are able to pass on more income to shareholders. they're able to reinvest for growth as opposed to necessarily paying the government's bills, but the tax cuts themselves, there are all sorts of hand wringing over who was that going to benefit especially since bigger companies are pretty adept at not paying taxes through legal means, of course. i don't want to make any accusations, but they are adaptable organizations, and it's oftentimes the smaller cap stocks. they're the ones who foot more of the tax bill and theirs are the earnings growth that they haven't seen participate with the big companies that have been pretty good at keeping their effective tax rates low. >> you mentioned something that is getting more attention, and

brian reynold, another brian focuses on, as well and he thinks buybacks are going to be an important component of the rally and it takes us back to the late 2010s when this was a huge phenomenon. tell us about that. >> you saw apple and google announce big buybacks and they have a lot of cash flow, so why not? but other companies are likely to get into that game as well. if they have already turned up their debt, you have seen some that are paying off the higher cost debt because of the cash flow. so maybe there isn't this massive refinancing wall that's looming in front of us and with the excess cash they'll probably going to be able to deploy that as far as buybackses and with the dividends. big companies, they do have to pay a penalty to the government if they do those buybacks. we thought that might tilt things more in favor of dividends as opposed to buybacks, but it is not punitive enough to incentivize them, and as far as we're seeing earnings

expectation rise, the buyback season is coming into bloom and that's a formula for the market to continue to move higher. >> what sectors, do you believe, have the potential to move higher from here. >> the way we're positioning portfolios is more in the mid-cap space and most of that comes from the bottom-up work that we do as far as what are the companies that have resilient profit margins and have been able to grow them relative to industry peers within the specific sectors, energy is still a cash cow. low investment as far as increasing productive capacity and so they're just milking the cow of high oil prices and also still within technology and although within tech, it has moved down more towards the mid-cap tech as opposed to the mega-cap tech. >> brian, thank you so much for being with us today. you gave us a lot to think about. we appreciate it. >> thank you. >> let's turn from the midcaps. amc and gamestop losing gains and still seeing huge gains this

week. let's get a look at what the retail investors are thinking about the meme trades and the dow run to 40k. retail trader ryan monoski has more than 6,000 subscribers. it's good to have you here. welcome. >> i appreciate being on here. thank you. >> it's interesting that we're seeing both the broad market and the meme stocks perking up this week. what do you think is going on here? >> well, i asked the community yesterday, why are we moving into some of these plays? for example, today i see faraday electric, and some want to go ahead and get the bears and attack the shorts and you're seeing that play up 3100% in, what? three days? you have gamestop, of course. warren kitty came back and posted after three years. three years he doesn't say a word. we get a little guy leaning up.

i'm paying attention and we're getting a lot of video clips through there and of course, we know he has a huge -- just a huge community from back in 2021. so that's driving a lot of interest in these meme plays right now. >> i think what i find so striking about it is it would be one thing if he did a one-off post or ryan cohen or any of these guy, but it's got to be more of a coincidence that the broader market is making new highs and if i think back to the last time around when amc and gamestop were jumping and the market was in a period where it could have a blowoff top later that year. so it just seems to be plenty of money sloshing around for lack of a better word. it's not as if this consumer is feeling so strapped that they're thinking themselves i have to get out of the market instead of pouring it in. >> i agree with that. people are seeing opportunities right there. the one thing wall street doesn't understand about the retail community is if they just

wanted the 10% annually. they would go into the s&p 500. they are looking for bigger gains. they are also looking for a reason to invest to be a part of something bigger than the individual. so when you see these meme plays and people talk about the communities are huge. it's a different time now than it was say, 20 years ago. the online presence allows people to be a part of something like this. and so, a lot of people, they do it for the community and other people where they just came right out and said i'm just making as much money and others want a piece of the pie and others want to go out there and thus, like i said today, far oday. i saw that two days ago pop up in a lot of the comments on my discord and on my channel and two days later it's up 130% and that is the same catalyst that we're seeing from a lot of retail investors. they want to get a lot and they want to get in and take advantage of it and put it to

the bears and hopefully walk out with a lot of cash. >> let me ask you a broad question if i might, ryan and it is this. here on cnbc we have a lot of people who mention stock names who are traders and are in and out and hyperkitty -- what is his name? >> roaring kitty. >> hyperkitty. that's going to be my name. >> that's a channel right there. you can start that up. >> i'm going home right now. i'm leaving. i'm leaving, folks. i'm out of here. but my question is, so here you have people on cnbc doing -- mentioning names and doing things like this and then you have whole communities, large ones built around folks leak yourself, like roaring kitty and others who have followings in the hundreds of thousands who are trying to -- to learn how to be an investor. how should people think about

this world and these individuals? yourself included as guides to investing. guardians of capital? >> well, i can answer that pr pretty straightforward. myself, for those that don't know i've been an educator at high school/college level and a financial adviser, lots of accolades and two national championships with kids and two state championships and it's who you follow. you have to make sure you look thea the background. can you trust them? let's be blunt, and of course, out there there is a lot of different communities, and roaring kitty, you know, hyperkitty, whatever you want to go with. >> hyperkitty. >> at the end of the day, you have to have faith that the retail investors will do their due diligence and who they follow and what stocks they want to get into and i've been pushing that since i was an educator into my own kchannel ad

making money along that way. >> do you think this is the same crowd that is involved in the meme stock three years ago or is it a fresh one? >> it's a combination. i had some people come out and say who's roaring kitty? a lot of them saying i've been here since 2021. i'm still holding, and so you get a nice combination of both -- some people said i was a part of that, you know, and i got burnt and i'll watch from the sidelines, but as you guys talked about earlier. a lot of fomo and a lot of people wanting to get in, you can see them running up hundreds of a percent. at the end of the day it gets the community fired up and i can see it in my channel right now. >> it seems like you're doing a lot of thinking about it and maybe investing in china. why? >> i am. well, right now one of the big plays we have on there and we can pull that up with yin. yin is up -- let me get the right one up there, boom.

about 80% since we got in. why? because with china, you have quantitative easing. with china, you have this worldwide tour, this good will tour that you're seeing them go on with the western nations and world to drive commerce their way, to show they're open for business again. so you have two, two and a half years of that market just getting clobbered. you have the u.s. rallying like it's no tomorrow. so it's getting frothy here in china, and you have the lows, the multi-year lows and now, as you know, i think it was a quarter trillion therdollars in stimulus to buy it cheaper and you put it all together. >> quick, final question and when you play something like yin which is triple leverage and enough people are in this and i'm getting out and is it a price level? it's a tough way to ride.

>> one of the biggest questions retail people ask me when do we get out? we see the technicals and put all of those together rsi was 76.672 & when you see it flying that high it's the time to start taking profits or at least getting trailing stop losses or some put options as insurance. you never want to use it, but it's niceto have in case you do. >> ryan, thank you very much. ryan monoski, aka, stock mow. when you talk to me next time i'm hyperkitty, all right? >> i'm subscribing to your channel. >> don't do that. thanks alot. all right, kell. coming up, as lower income consumers continue to struggle with higher prices. walmart is betting on the higher end and shares are up 7% continuing to power the dow. we'll discuss it all next.

>> welcome back to "power lunch." walmart is higher after a strong earnings beat. shares are up 7% and they're seeming to win over higher income customers. melissa rivko is here to discuss. what does it tell us about the brighter economy and the state of the consumer? >> it's an interesting time because walmart is seeing gains from households we don't typically associate with. it's seeing a silver line with inflation because it is picking up customers who may have gone to fast food restaurants. walmart is seeing four drivers that spoke with the higher income shoppers and e-commerce gains 22% in the u.s. year over year and it's gaining from people who may be cooking at home rather than going to fast food and it's also getting a boost in its business from

things like advertising and a third-party marketplace which are newer businesses for the company. >> interesting. ? so talk to us a little bit more. elaborate on this potential switch from people who would eat in quick-serve restaurants and now are not doing that. are they coming in and buying prepared foods or are they buying food that they have to cook? a little bit of both or what? >> the gap is widening between fast food and grocery shopping. he was noting as prices come down in a lot of the ingredients at the store if you look at the sticker price on the menu that stayed high and walmart is offering both prepared food and also ingredients that might be more interesting for people who are bored with cooking at home. >> amen. >> they launched a premium line of food called better goods and they include like curried checken empan adas or chicken wings and they're looking for a

cheaper alternative. >> mcdonald's launching this $5 value meal and for now also talk to us about the higher income customer. what was it saying about the shopper? >> the sample told me that one of the reasons why they're attracting this customer is everyone is more value conscious, but also walmart's really leaned into kind of classing up a lot of its stores. it's remodeled a bunch of stores and it's full steam ahead with that plan. so it's putting a lot of its fashion forward merchandise front and center and even the food line might associate it with someone like a target. it looks a lot like that. so those types of moves may end up attracting a more affluent customer. walmart said it is not intended to attract them and that is what's happening and they're adding a lot of convenient options like delivery to the home. interestingly, for the first time delivery has surpassed pickup. walmart orders. >> you said online or digital is

up 22%. 22% for the u.s. and 21% globally. >> and that would -- they would be competing head on head with amazon in those areas. >> exactly. >> target and others. >> yes. and that's a combination against store pickup of online orders and the delivery in the home and the delivery from the cardboard boxes and both from the store in paper bags and also in the box and all of those different things that they offer trying to lean in. >> it's interesting to me that affluent customers are part of the pickup here. customers like bargains, too. >> exactly. they may be going to a store like walmart for a different reason than a lower income customer is, but they like the selection. they like the low prices. >> exactly. we've long thought about t.j. maxx and places like that, people would brag, i've got the dress at t.j. maxx and people are comfortable looking at a place like walmart because they see like ald i and needle

growing. >> it may help them fend off amazon at a time when they're battling who is the biggest company in the country and amazon's hot on walmart's heels and it's almost there. so the more that walmart is acting like amazon the more they might think that they can keep that crown. >> exactly, that is where they're trying to lean into the alternate revenue sources because they know from amazon's playbook that you cannot just be a retailer, you have to move in other ways and higher profit ways. >> melissa, thank you very much. >> thank you. >> still to come, we continue our anatomy of a consumer series. today we look at how spending is holding up in travel. are consumers tightening their belts this smeumr? we will be right back and we will be right back and explore that and more. bring yous on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies.

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♪ ♪ welcome back. we continue our week-long series on the consumer. today we're looking at the travel space which has been so strong and this memorial day is expected to be the busiest ever for flying. phil lebeau brings us the details. phil? >> kelly, it's not just memorial that will be the busiest ever, this summer will be the busiest

ever for the u.s. airports in term of the number of people who are going through the airports. in fact, the tsa says it will be an increase of 8% to 10% compared to the number of people who were flying next year. it starts next friday, the friday before memorial day with a bang. 2.9 million passengers are expected and we've been seeing a steady increase in the number of daily average passengers being screened by the tsa. it was a record last year. we will likely see it cross over 3 million a day at some point this summer. so what is the tsa doing? they're adding staff. >> we've added staff and technology and we've also had the benefit of finally paying our workforce what every other federal employee would be paid for that kind of a job, and that has had a big difference in our ability to retain talent and so our retentionrates have gone up by 50%. so it's a significant improvement. >> so what about the airline

stacks? they haven't done much this year, and that's reflected in this chart compared to the s&p 500. look, there's a lot of reasons why the airline stocks haven't moved although we haven't started to see a number of the airlines and swing into profitability and the busiest season of the year and the average one-way airfare, about $180 according to sir yum. i know i hear this all of the time from people saying really? are there more people working at the airports? it seems crowded. yes, there are more people working at the airports for the airlines, at the tsa, et cetera. >> i've been doing a fair amount of flying, and i haven't found anything like that lately. when we think a few years, and i don't know how many years, with the incredible snarls especially at o'hare and tsa and through checkpoints and hours' long waits and what changed it make

it operate more smoothly besides the fact that they're paying more and retaining more of the workforce? >> they've added more taf and they've added more lanes at various airports where they can. they are constrained in many places physically with what they can do, but in other places where they have been able to add more security lines, they've been able to do that and that has help the flow and they will point this out at the tsa. yes, you will sometimes see what appears to be a long line. it's the wait time that they are focused on and according to their own data, they have been generally speaking hitting the expectation in terms of how long they expect those wait times to be. >> phil, thanks very much. phil lebeau, and so does the travel area have the legs to hold up the consumer and will we see belt tightening this summer. joining us is the senior analyst jane becker. thaw for being with us.

i expect you will tell us that consumers are still looking for experiences and you expect a good summer in airlines particularly. >> absolutely right. that's what we're thinking. to your point, two things are happening, one, to the experience sector of the consumer, you are seeing more international travel than we've ever seen before. interestingly enough, i won't tell you how many times i've been covering airlines and it's more than four decades and what i will say when i first started, less than 10% of americans have a passport and now more than 40% do and you are seeing this increase in the international travel and one thing that we have this summer is the atlantic would be in an overcapacity situation, but in the past six month, two things have changed. one, we've seen air draft delivery delays and the airlines haven't been able to grow at capacity as much in the

international marks as much as they've wanted to and the result has -- and that's not only u.s. airlines because the u.s. airlines would always be a low single-digit capacity growth this year because they were first back in the market last year, but you are seeing european airlines cut capacity growth so that benefits. go ahead. >> let me go on the coverage list and ask this question, it seems to me, and you can correct me if i'm wrong that you have the higher view of the larger legacy airlines, delta, american, united, alaska than you do of the more upstart budget-conscious airlines like allegiant, southwest, spirit, frontier, hawaiian, et cetera. is that right and if so, why? >> yes. exactly right. a big part of the reason is the international component. american is probably the smallest with 35% international, but delta's about 45% and unit

is almost 50%. asia pacific is another area of growth in addition to the north atlantic. we're seeing big growth in asia, x china, delta and the biggest component of travel in that market. so that's pretty much speaks to why we like those airlines better. alaska is the outlier because they are a focused airline and seattle, they don't tend to play in florida. i jokingly say in the past americans either go three places, that's south florida, las vegas and maybe southern california and those are the markets where we have enormous capacity growth and as a result, fares have come down quite a lot, and so those airlines are having a little bit of a struggle in terms of generating revenue and operating margins are under pressure and then the other part of it is kofs are up a lot, right? labor costs are upand on a

relative basis since the big four, well, specifically, maybe america, delta and united. they set the bar pretty high, and even though their labor costs are up 11% or 12% the labor costs of the smaller airlines that you referenced are up 30% and 40%. >> interesting. >> it is up from a margin perspective. >> helene, what would you do with the airlines as we move throughout the cycle and maybe this is a '90s-style bull market and the late stages. i don't know. can you put this in perspective as we try to figure out what the macro message might be about the consumer here? >> yeah. i think that we're going to see a shift eventually as three becomes the new four or four becomes the new three. people will be required to go back into their offices more often and what we've seen over the past two years is as people

return to office they return to travel. so right you have what i call a slight inversion where you have more leisure than you do business traffic and it's still not at the pre-pandemic levels and it won't be especially the short haul market. they'll probably take a longer time to come back and it's how the international will come back and you'll see that swap and when that happens, profitability should improve for all the records that we talked about is in terms of ridiculous traffic, the summer that people are protesting including us, we don't see that reflected in earnings. we see record revenue. we also see record expense and expense is growing faster than revenue putting pressure on margins and cost to capital is going up. so that is impacting the valuation for the equities even

on a p-e or price to cash flow basis where we're lagging until we get the numbers to be a little more stable and that's probably 25 even. >> yeah. exactly. so they can kind of break that ship then it becomes an even more compelling thesis. helene, thanks for your time. we appreciate it. >> helene becker. >> as we head to break, let's get a check. up is amd following nvidia. on the negative side is pool corp continue the recent price cycle and it's down 7% in two months and 3% today and that's the power check and we'll be right back.

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switch to comcast business and get started for $49.99 a month. plus, ask how to get up to an $800 prepaid card. call today! welcome back to "power lunch," everybody. money moving into stocks sending yields higher. rick san ittelli is covering th action in chicago. >> tyler, was there major u-turn

action and let's start at the top. at 8:30 eastern we did sg startd it was on the light side, but like many numbers lately, it's not what you see in the windshield that moves the market. it's what's in the rear-view mirror. last month revised 1,287,000 and that is a four-year low and that definitely was an issue and we saw yields drop on that and then almost immediately did a u-turn. why? because import prices were at a two-year high, up 0.9% and even petroleum was up 0.7. these were hot numbers and you see the intro of twos and tens and how did it all begin? yesterday we closed twos and tens at the lowest yield since the 4th of april and it would probably be advisable for all you traders out there to be

paying very close attention especially in the tens to the low 430s. there should be good support there and it barely made it over 470 and for reverse, we could say a lot of things about the volatility of treasuries and one thing is for sure, they have been trading technically pretty hot. kelly, back to you. >> thank you, rick. rick santelli and more tariff news out of the administration, and they're looking at the impact of solar companies. what now? >> the white house is reimposing section 201 tariffs on bifacial panels and these are double-sided panels and make up the vast majority of the panel imports. back when the exemption was first implemented they were a very small portion of the imports, but because they didn't have the tariffs then they grew to become the major imports on majority-scale panels and the white house said they should no longer be exempt. it's ending the anti-dumping

duties waiver on june 6th that applied to four southeast asian countries where essentially chinese producers were found to be running the solar systems through the four countries in order to not have -- to be subject to these duties. separately, the department of commerce announced yesterday a new adcvd investigation and this comes on top of tuesday's 301 tariffs when we doubled when the administration doubled the tairives on the solar. >> what is an adc -- >> i don't know how you keep all these straight. >> it's essentially saying chinese producers shifted their footprint to southeast asia where we get more than 80% of the panels in order to avoid those tariffs and it's incredibly confusing and they summed it you will wep when they said thewhiplash caused by constant changing regulatory policy is bad for business certainty because if you don't

know what your costs are going to be you can't build one of these long-term projects. a lot of confusion and hard to keep track of all of these. >> that inflation reduction act was supposed to be biggest gift to clean energy you understand strees. to american clean energy industries as they increasingly increase tariffs on outsourced goods. >> it's the inflation reduction act we saw all of these announcements, but when it comes down to it shifting supply chains takes time and china controls 80% of the different steps. even if you look at the model level, what if you go to wafer? cell in polysilicone? >> wafer, cell, polysilicon, and we have the supply chains reoriented and this is the white house saying we went this whole way to incentivize american manufacturing, it's not quite working out how we wanteded so we have to go further. >> interesting. >> pippa, we have to leave it

there. let's get to kate rodgers. news update time. >> hi there, tyler, senator bob menendez revealed during his bribery trial his wife nadine menendez is battling breast cancer. she was supposed to stand trial, but a judge gagreed to separate her trial for medical reasons. they are accused of accepting hundreds thousands in fines for political favors. it would require sellers to list the total cost of ticket to buyers including fees and it would ban deceptive websites useded by secondary sellers and require sellers to provide refunds when an event is canceled. >> a statue of reverend billy graham was unveiled today. to honor notable figures in history. the north carolina-born graham died in 2019. he is the most widely heard

christian evangelist in history preaching in person to more than 200 million people worldwide. tyler, back over to you. >> all right, kate. thank you very much. we celebrate asian american native hawaiian and pacific islander heritage, here is the wellspun living ceo. >> i come from india. icome from a patriarchal community. earlier where, you know, it was about having a male child, and i had two daughters. for me to leadby example was very important that what they saw that yes, there's a legacy that it's about financial independence, about being empowered to do what you want to do and truly make an impact.

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tesla. how well do they work? we asked eunice yun to take a ride. >> i am at my hotel in wuhan and i'm going out to dinner and i decided i'll take baidu's self-driving robotaxi. not everyone can ride, no young children, pregnant women, elderly, the infirmed or anyone with a bad heart. i'm in the right part of town to get the service and the app says i need to walk 100 feet to get the rob oxtaxi. thanks to steep discounts that's about the same with a regular taxi. we have one and it's coming in 15 minutes. so here's the robotaxi, but there's a driver inside. >> the staffer told us to catch an unmanned cab we needed to go to another pickup point, less than half of the taxis still come with safety personnel. we did and another showed with another assistant. finally, we got one without a

human. wait. no one is inside except for us. we are on our way, but we are moving kind of slowly about 30 miles an hour. on china's notoriously kay on theic roads, the robotaxi drove up a ramp, made a u-turn and negotiated its way around bikers riding tandem and a timid driver. in an emergency, you press this for help. >> so it took us a little bit of time, but we finally got here. the baidu roboservice is 24/7 and it looks like the car will go off for another trip. >> and baidu has a fleet in wuhan of 500 robotaxis that wants to build up fast. just this week the company launched the sixth generation robotaxi or the rt6. >> by the end of this year we'll be over 1,000 robotaxis.

it currently runs 800,000 orders per quarter on a quarterly basis and cumulatively we have achieved over 6 million orders for our passengers. >> in addition to growing the usage, the company wants to make the car cheaper so the price of the rt6 at $28,000price at $28, less than half of the cost of the model i was in. guys. >> it looked like when you began your journey it was light outside. by the time you got your dinner appointment it looked dark. it seemed it took a long time from beginning to end. were you late? >> reporter: yeah, let's say that it took four hours just to get the unmanned cab. yes, but once we were in the cab as you saw it was orking. the sad part is because it was so exhausting getting the cab and doing everything, i didn't

end up having dinner. >> that is the greatest ending to the story i think i've ever heard. eunice yoon, thanks for staying up late for us. see you later. >> we should send her -- >> we will send her and huber. coming up, a special dow 40 k edition of three stock lunch. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow! are you interested in safeguarding your investments with gold? alamos gold is a growing canadian gold producer

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welcome back. time for today's three stock lunch. the managing director of fx strategy has our trades. to begin in honor of dow 40,000, we have asked you to pick a stock you think will help drive the dow to 50k. your pic is? >> microsoft, the world's largest $3 trillion company is on its way to guiding the dow forward. they have a dominant place in a.i. and are good at exploiting their dominance. it is out of the realm of possibility to imagine paying

subscription fees for a.i. agents the same way we pay for office at this point. i think there is an amazing opportunity to monetize. having a ton of cash on hand. the company i think is firing on all cylinders. very solid going forward. >> up next, boris, we asked you to give us a stock that you would not 09 now and you said -- >> i think boeing continues to be radioactive. i know everyone thinks the worst is over, but there are still a tremendous amount of problems. the doj is suing them for essentially breaking their agreement. it is not out of the realm of possibility, but if anything terrible happens to their planes they could be sued into oblivion and for me this is too much of a danger right now. i want to see a year f peace and calm and stability before i would consider investing in

them again. >> we also asked you, boris, to give us a stock that is not currently in the dow, but could be. you said alphabet. sounds like a solid choice. >> i was wrestling and decided alphabet is a solid choice because the company is a master of dominating in all of the sectors. if you think about this youtube really is now the television of the world. they are such a dominant presence. we far watch more than any other shows and that translates to a massive amount of advertising. add to that the fact that they still have a very healthy business center, growing at double digits for them. they have this opportunity and of course they have had some setbacks, but they still manage i think to create a very strong space. and marrying a.i. with search going forward, there are lots of opportunities that way. >> you reminded me it is not

currently in the dow. i think it is a great fit. >> we will be right back. got to go. >> thank you, boris. we are back after this. his is ? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. (vo) sail through the heart of historic cities thanks for coming and unforgettable scenery with viking. unpack once and get closer to iconic landmarks, local life and cultural treasures. because when you experience europe on a viking longship,

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curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab. thanks for watching everybody. >> see if we can close above 40,000. "closing bell" starts now. >> welcome to "closing bell." we begin with surging stocks. new highs and then what happens next? we will ask our experts over the final stretch including rick rieder who will join us. with 60 minutes to go, the dow topping 40,000 for the first time ever earlier today. you know about that by now. all three averages reaching new highs, so we will track it over the final stretch. apple is a