Afternoon. Plus the business of back to school, rapidly approaching that time of year again, some School Districts heading back maybe later this week, next week, and this fall students, parents and teachers are facing a wave of issues including inflation and Artificial Intelligence. Were going to take a dive into some of those issues over the next few days. Kelly, take it away. Its more complicated going back to school than it used to be were also getting more complicated trading where the markets continue to be unpressue nasdaq once again the underperformer down 101 at the moment some huge earnings moves to mention. Roblox is plummeting 21 today, its back below 30 a share, missed on the top and bottom lines, wider loss than expected. We will have more on that in just a moment. Carvana also lower by 3 , we had this 0800 run up this year each with todays pull back, still one of the most incredible runs weve seen of 42 a share. More on the chart in just a little while. And as tyler mentioned, a huge deal in the media and gaming space, penn entertainment rebranding Online Sports book to espn bet, paying up for the rights and hoping to bring the betting brand to millions nor people lets get details from contessa brewer. Kelly, penns ceo jay snowden believes the Strategic Alliance with espn can get the interactive segment to between half a billion to a billions dollars in adjusted eatbitda. Right now they are not licensed in new york and they think getting this deal could pave the way for that snowden said on the call he thinks the power of the espn brand is so great that his applications to regulators would be looked upon favorably in fact, the industry insiders i spoke with think this could be good for sports gambling overall because being embraced by disney, by espn, you know, this stellar brand in the sports world normalizes gambling. On the call they clarified that november is the target for relaunching this app, smack dab in the middle of the nfl season. In the meantime because of marketing costs ramping up penn is unlikely to hit profitability in the last half of the year and thats a change from what we heard from predictions from the Company Previously the strategy with a media partner is something, though, that penn really believes in, that they believed in it with barstool but that deal didnt work out barstool is a different beast than espn. Jay snowden really believes in this particular strategy but with this elevated partner i will be speaking with penn entertainments ceo jay snowden later today alongside crijim crr on mad money. There are so many different questions i have about this, but one of them is to ask what do we think espns fortune will be with launching this espn bet i mean, its such a yes, draftkings was down today but it is such a saturated space. Curious how big they think this could get. Jay snowden was asked on the call today are you late to the party . Youve done this. Right. Youre doing this now more than five years after overturned to allow states to legalize gambling. He said i dont think thats the case at all. We were accused of being late to the party when they bought barstool, they got younger gamblers out of that they think they can retain those younger gamblers and be exposed to not older gamblers, but just gamblers in general. Then the question, are the people who are using espn, who are inclined to gamble, arent they already betting again, he said, no, he doesnt think so if they have 300 million followers on social all together he thinks there is a real opportunity hire and not just with legalizing in more space but in more exposure and retaining those better, plus and we have heard this from draftkings, we heard it this morning from fanduel parent flutter, we heard it from caesars they said product matters. When they relaunch the tech stack, when theyre making news of these player and ingame parlays they are getting more engagement and more money from the people betting on the app and penn is pointing out they just brought their tech inhouse. Interesting. I like to watch sports, okay, i watch a lot of espn. I will tell you the thing that will infuriate me here is if the sports broadcast becomes secondary to the game blng product on air in other words, that at every juncture i am confronted by an opportunity to place an ingame prop bet will Aaron Rodgers next pass be caught or dropped by randall cobb or whatever that will just ruin the experience for me. I hope they dont do that. Im not in charge of that, tyler. A Different Office . But i do think that they know theyre walk ago fine line in fact, they were quick to point out today about responsible gambling, that espn has already been working in conjunction with penn to try to make sure that their responsible gaming initiatives are front and center so how do you use espn personalities in a way that is still responsible and respectful and keeps it out of the hands of underaged sports enthusiasts yeah. I mean, my point he had tore yall liesing here is that espn and the sports broadcasts need to be a sports broadcast, not a betting broadcast. Im sure theyre listening. I hope they are. Listen, i agree, for what its worth that makes at least two of us. Theres two two for purity in sports lets continue to gnaw on this, get angry, get infuriated. Riled up. For more on the deal lets bring in Barton Crockett with rosenblatt securities and david katz covers penn and the gambling stocks at jefferies why does espn choose penn and not a half dozen others that might be just as good or bad look, i think its the brand. I think what we are looking at is a battle of the brands. So all of the bigger players in Sports Betting online in this country are big brands that arent going to play second fiddle easily to espn, fanduel, draftkings, well established, the casinos, emgm. Then you get down to barstool and you can get rid of barstool with espn and it makes sense i think what disney is eyeing is the future of culture and Media Consumption and i think what theyre seeing is that the new generation is going to find Sports Betting additive to the experience and they want to lean into it and have their brand front and center we just saw the opposite with fox, their fox bet kind of deal, you know, was unwound and part of that i think was, you know, attention. I think that the partner didnt want to make fox bet the preeminent brand, they wanted to lean into fanduel. So, you know, here they have a partner thats small enough that they will let espn lead and i think disney likes that. Disney likes the idea that they will be the undisputed senior partner in this deal. David, let me turn to you. Why do you think this is good for penn what do they get out of it and answer what barton just talked about why penn and why did disney choose them over fanduel or caesars or whomever . Well, part of the answer, tyler, is that those other entities are all set, you know, with their enterprise and have been at it for quite some time the way weve looked at Sports Betting from the beginning is the requirements are market entry, a brand, content and technology right . And so espn, you know, clearly is bringing you a brand, penn brings them market entry, given the distribution that they have around states and across the u. S. The questions that we have, that were discussed on the call this morning, are around the technology platform. We know that penn acquired the score media for 2 billion and that tech platform is being rolled out now across the u. S. And, you know, we will we will see how well it performs. The content as contessa was talking about earlier, the parlays and the end game has been winning and i think that thats one of the questions investors are asking as discussed on the call this morning, is how well will penn and this new app be able to deliver content that engages and retains players over time. But you can see part of it, but part is still to come, tiler i am curious, barton, in what tyler mentioned earlier which is does espn risk alienating its core viewer at this point or how do you expect them to integrate this experience in the coming years . Look, i think that generation alley its changing, right it was kryptonite 20 years ago to be associated with gambling, now its becoming kryptonite not to have some ties into that, it has to be part of your media offering you know, the survey data is pretty clear, the Younger Generation wants gamification, they want some access to this. So i think what disney has done is theyre actually leaning into the future of how people want to consume sports and engage with it very handson kind of experience that i think they will be able to provide with this deal, that the other Media Company sports players may not be able to do because they are not going to be the leading brand, they might be a funnel but they are not going to be the leading brand for the experience. David, why does espn have to own the betting platform and how are the economics of that business in other words, they benefit from Sports Betting broadly speaking, parlays, whatever, more engagement, more interest in their broadcasts. Is the model for espn a better model than the current espn business model, and if not, why not just say, hey, we dont need like its a totally different line of business economically does it make sense for them to own it yeah, and i think it would be interesting to have barton weigh in on that, you know, for the depth of their business model, but presumably they are in it to make money, lfrt, and i think whats been proven so far by the others, draftkings and fanduel in particular, is that its possible to make money and i think that that was a discussion point earlier on in the evolution of this business in the u. S. Was anyone ever going to turn a profit at this moment what were seeing is companies are turning a profit my presumption is that espn is in it to make money. Yeah. Barton, very quick final question here, does this deal make it more likely that eventually disney spins off espn it could. It could you could see deeper integration with better. I dont think iger is there today, but this kind of lays a path to go there if he changes his mind it just occurred to me that you have an integrated Sports Betting and sports franchise that could be very easily cleaved off at high enterprise value from the Parent Company disney which is kind of in a different business these days. Barton crockett and david, thank you very much. We appreciate it lets get over now to a different gaming space, the big results in the video game market where roblox is peaking more than 20 after a wider than estimated loss the shares are up 1 and sony seeing disappointment with ps 5 sales, shares down 7 . Steve kovach is here to help us make sense of it. I guess if you tried to pick one it would be we went through this really tough 18 months in the video gaming world, tough compared to the pandemic when we were all stuck inside. Sure. Kids playing more video games. We saw hyper growth from roblox, they opipod in the thick of th pandemic there were supply chain issues, the supply has caught up to demand take two, same thing as roblox, huge boost during the pandemic what we saw from roblox, though, is they had to spend a ton of money, guys, in order to maintain all the new users they were getting during the pandemic, thats infrastructure costs, hiring new people, theyre starting to dial that back, i spoke to the companys cfo about this on the results. What theyre projecting here and this was a huge discussion point on the Earnings Call this morning, you guys are spending so much, margins arent great, you know, losses continue. Theyre saying its going to get better next year, were spending what we need to spend now to keep up with all the demand that we had, all the personnel we need to maintain, thats going to ease back into next year. Thats the story around roblox with play station, catching up to supply, there is a bonus story in the sony thing, i will divert from video games, they make the cameras for so many of these smartphones we use, especially apple and warned the image censoring theyre not going to see smartphone demand pick up until next year. Thats an interesting warning sign for apple, samsung, all the other mobile players take two this is a fun one because even though theyre reaffirming their guidances, middle and guidance for the current quarter, fouryear guidance, theyre guiding already towards 2025 because if you wanted to listen to the ceo squawk on the street today he hinted that a new video game will come out in fiscal 2025, calendar 2024 that is the most profitable Entertainment Property in history. Wow they are going to have the next version of it coming soon that is going to be huge catalyst. Maybe better than a 1. 5 catalyst it should be. Its a few years out. Theyre saying they did, for example, i have the numbers here, they did a little over 5 billion in net bookings in their fiscal 2023. Theyre saying thats going to go up to 8 billion in fiscal 2025 most likely not just because of eta but other games. Fiscal 2025 which is literally calendar 24. Calendar 24. You can look at starting second half of calendar next year. July. Exactly they just started their not to mention hanging over the space is microsoft activision how does the Acquisition Price look in retrospect. Too expensive thats been the story for such a long time because they made that offer for activision right before we saw what happened in the market. The weakness. Got it. Exactly look, i mean, he was on our air earlier today saying this is good for the industry, the activision deal, he is an independent student, its good for ea if and when the deal gets buttoned up expect to see more m a chatter to get it through. Electronic arts, take two it could be great for us. Steve, good to be with you. Coming up, chinas challenges continue, a deepening slowdown in the worlds second largest economic power raising fears of deflags all this as reports emerge that the white house is planning to restrict u. S. Investments in china even more. Plus, we will get some Technical Support for some of those headlines and earnings movers, were seeing across the market today. Power lunch will be right back im still fired up pano ai chooses tmobile for business for 5g solutions. Because tmobile helps pano ai innovate, so they can stop the spread of wildfires. Nows the time to see what americas largest 5g network can do for your business. The citi custom cash℠ card automatically adjusts to earn you more cash back in your top eligible spend category. Hi. You dont have to keep tabs on rotating categories. This is the only rotating i care about. Or activate anything to earn. Your cash back automatically adjusts for you. Can i get a cucumber water . Earn 5 cash back that automatically adjusts to your top eligible spend category, up to 500 spent each billing cycle with the citi custom cash℠ card. I love it. [voice vibrating] the white house expected to put more pressure on u. S. Investments on china with an official executive order later this afternoon the plans are reportedly aimed at preventing u. S. Capital from helping develop technology that would support chinas military modernization, but this couldnt come at a worse time for chinas economy which is showing signs of a deepening slowdown. Lets get insight from dennis uncovic, his firm works with u. S. Companies that do business in china welcome back lets talk about the chinese economy and how much distress it is in right now. It looks like it is in deflation, which is never really a good sign at all. Im not sure its quite there yet, tyler, but last year, 2022, the chinese economy grew, you believe the statistics, at about 3 this year the economy is growing really even less than that, and, in fact, in q2, which we have just finished, the gdp grew 0. 8 i really wonder if thats even a real statistic. Lets talk a little bit about this potential executive order what would it do and how would it likely affect american businesses that want to do business in china, but certainly dont want to do anything to damage American National security interests we have a law called cffius what it did was prevented inn found investment that we thought would hurt the u. S now biden has expanded the cffius to make sure if you are outbound, if you are an investor or company that its going to be much more difficult for you to do that. The question is why. I think the close line what is militarily application and what is not is whats driving this. I think the three areas of the Biden Administration will look at, semiconductors, which as you know theyve already done, secondly quantum computing but then the hot topic today is ai is ai, and so this would be an extension or has it already been put in place about that kind of outbound investment, because cffius when i think of it is can a Foreign Company come in and buy a port operation in the united states, or Something Like that. Is it already in place, this outbound restriction that for cffius great question. In short, as far as semiconductors go, the Biden Administration a year ago started to put this this outbound in effect whats happening now, tyler, is that i think the Biden Administration is going to essentially make cffius not just inbound but outbound and thats a real change. Is the Biden Administration tougher on china than the Trump Administration honestly, i see very little difference between the Trump Administration and the Biden Administration in dealing with china. In a certain respect i think biden might be slightly tougher, but the you remember the tariffs that trump put on in 2018 right. Theyre still there and i dont think the Biden Administration is going to remove them. Lastly, dennis, i was just wondering this mostly sounds like it will affect private equity and Venture Capital firms. Have they been actively trying to push back against this . Or are they just going to look else elsewhere . And how much of the capital for developing Artificial Intelligence and the rest of it in china are they providing if it has to be a singledigit percentage. Its not a major amount that i can see coming from the u. S. Into china, but the chinese have something called their cyber Cyberspace Administration and its now cutting down on ai within china in other words, Something Like chatgpt they are making it more difficult in china to have that there. But in the long run do i think that American Companies are going to want to continue to invest there i think the answer is yes. Do i think it will be much more difficult . Its going to be much, much more difficult. Dennis, as always, its great to see you, dennis unkovic, we appreciate your time today. Further ahead, a chip industry talent tug of war following the chips act companies promised to hire thousands of workers but the labor market is making that difficult. Also check out the Dow Jones Industrial ample which just briefly turned positive to erase a couple hundred point drop earlier this afternoon back down by 8 points. Power lunch is back after this vo Verizon Small Business days are back. From august 7th to the 13th. Get a free tech check and special offers. Like a free 5g phone. Plus, switch, keep your number, and get up to 300 off. With verizon business. Its your business. 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With jabra enhance select, you can get the same advanced Hearing Aid Technology and professional care you expect from a clinic at a fraction of the cost. For a limited time, get 300 off select hearing aid models. Visit jabraenhance. Com. Welcome back hi, kelly, how are you hello. There you go. Hi shes right there. Lets get to the bond market Rick Santelli is tracking the action. Tyler, its been a very interesting session, especially considering how every trader, every source i have, of course, is trying to decide how to go into tomorrows cti jobless claims and fridays ppi. Believe me, theres nothing that could have a bigger effect on the yield curve, Interest Rates in general and equities than some big moves in Consumer Price index and Producer Price index over the next couple of days lets look at a short extra day of tens, 1 00 eastern we had a good auction, we made the low yield of the session it has turned around just a bit. As it sits right now at 401 we are down a basis point or two on the session. The steepening of the yield curve thaft taking the inversion away to some extent might have run its course and its very interesting it did it right before cpi so the bear might be over for now we had an intraday of 420, we are down from that toying with 4 a psychological level basically right where the auction hit a whisker below 4 at 3. 999 if you look at the twos to tens spread and think like a technician, mid points, easy things, if you look at the recent range from april to now, youre basically looking at a midpoint around early to mid minus 70s which is kind of exactly where it held. Pay attention to that if we start to see more of a return to more negative and more inversion in the yield curve finally everybody should Pay Attention to the relationship not only of the dollar, the your rover suss the dollar but the euro yen, right now it is close to retesting 15year highs in favor of the euro at a time the japanese are supposedly going to tighten up rates. Rick, the euro yen might be too wonk y even for me. Lets turn to the oil market. Pippa stevens, keep it simple, pippa. Okay. There is a lot going on today in Energy Markets broadly lets start with oil 84. 65 today is the highest of the year going back to last november ticb private told me the saudi production cuts are actually starting to lead to tighter physical markets we have demand holding up and projections calling for more also just that the product side demand has been very strong as well thats all contributing to that boost. Nat gas topping 3 for the First Time Since march, that of course as record temperatures extend and production is coming down. Take a look at european natural gas, we have a chart there that it is up 30 today. What . Yeah. So that is thanks to fears around a strike at an l g plant in australia so european storage is very healthy. There is definitely not any type of fear about a shortfall right now, but the fact that it could rally this much on an australian l g plant potentially being side lined Marathon Petroleum hitting record highs, psx and slb at multiyear highs. I have one for pippa. What it its about the wins business, speaking of coming out of left field. Evidently its not going so well these days. Wind is tricky because some of the utilities in this earning season have been flagging speeds havent been as high as they were slated to be. Wind speeds yes thats tricky because climate scientists dont completely understand why wind levels vary from year to year so its hard to predict sometimes we also saw that last year in europe and that was part of what drove those ktf levels up over 300 per megawatt hour because wind speeds were slow for some reason it hasnt been producing as much as some people would have thought so it can be hard to predict. Its a little bit of a gray area. Costs are going up, new project delays tore an area also tech is always iterating, if the blades are getting bigger you need bigger trucks and ships every two years if there is development it can be hard to keep up. The costs have been elevated on the producer side. Pippa stevens. Leslie tyler, mauis airport is sheltering nearly 2,000 people as wildfires rage across the pa wine islands the state is asking travelers to stay away as the fires spread and the contee has closed all roads to the Historic Town of lahena where the flames tore through a local shopping district popular with tourists the states Lieutenant Governor told cnn local hospitals are overwhelmed with burn and smoke inhalation victims. New york citys migrant crisis could run up a bill of 12 billion according to the mayor who said nearly 100,000 Asylum Seekers have come to the city in the past three years he played another plea today to the federal government for more resources, he also called on the white house to give the migrants Work Authorization so they arent so reliant on government resources. The pentagon is offering millions of dollars to ai experts who can help stop hackers. The crash prizes are part of a twoyear competition challenging experts to come up with ways to bolster cybersecurity. That awards that which total 18. 5 million will be given out at the defcon hacker conference in vegas two years, but quite a prize at the end of that deadline. Thank you very much, less ri pick juror ahead on power lunch, a little Technical Support for some of the key earnings and headline movers weluh. Be right back with that onpor nc what if buildings could tell you how they could be more efficient . Im listening. Well, with ibm, you can use software to help you connect and analyze data from hvacs to elevators to lights. What if we use aidriven insights to pinpoint inefficiency . Yep. And act on it. Saving energy, money. And emissions. Yup. Thats a big one. Now youve built Something Better for everyone. Thats the sustainability solution ibm and a Global Real Estate company created. What will you create . Ibm. Lets create. So, youve got the power of xfinity at home. Now take it outside with Xfinity Mobile. What will you create . Like speed . Its the Fastest Mobile Service around. With the best price for two lines of unlimited. Only 30 bucks a line per month. Thats hundreds in savings a year when you wave bye to the other guys. No wonder Xfinity Mobile is one of the Fastest Growing mobile services. You really shouldnt walk out the front door without it. Switch today at xfinitymobile. Com a lot to break down in in market which has been breaking down lately. So we need a little Technical Support. For that we turn to jay wood, chief global strategist with Freedom Capital markets. I feel like we are reunited. Nice to see. You so nice. I like the Stock Exchange a little better. Can you believe this guy . We have three stocks, three great charts to get through. Lets start with the gambling space with that espn penn deal cnbc has the most popular gambling names. We are looking at caesars on two levels i backed this out. Sometimes if we went a year we would be focused on this area right in here. Okay. Its been consolidating what i like about caesars is over the long term it broke a major down trend, okay, so, one, it stopped going down, lets erase that now its been consolidating here but let me draw a little these lines arent so perfect on this wonky ipad but this 55 area has been very interesting to me. Its been an area that has struggled to get above again and again and again. Resistance here, resistance, all of a sudden something changed, it broke out, retested old resistance which became support which in Technical Analysis you love to see. This is exactly the textbook you want to see. It has the potential to basically go higher, has a lot to reverse here. So the setup is nice, the space is acting great and its leading its peers over the last year in las vegas and wynn, this is the one i like right now. Caesars is one you think could move to the upside lets move on to carvana how can we not show the chart of a stock that was up 800 this year, they just had earnings, boosted forecast, i think theyre taking profits, down 2 , 3 today. Up 800 i would love to back this out because you would see where it came from. Right now it looks fantastic a nice rounded bottom with a cup and handle im not calling that in fact, im watching this area very closely. Today this stock gapped up, traded higher on positive news like it did a couple weeks ago when they released the earnings early. It is now trading on the lows of the day. This has me concerned. Okay. Lets watch this 39, 40 area and see if it holds. What we dont see on this chart is a nice bearish candle if it closes on the low and it does break this 39 level, the 50 Day Moving Average which trails like right around here at 32, this is an area where we could see some this is a stock you really have to buckle up for. Sure. A vehicle i wouldnt be in technically because its a day traders thing. If i was trading on the floor, lets have fun with carvana, the longterm investor i want to see this above 60 for a couple days before i get in because it does have a lot to reverse. Short term i think its going to pause here and could break down this 39, 40 level. Fundamentally it makes sense, its interesting you see that aligning with this amazing chart we rarely get to see lets pivot totally different talk about oil it had been a pretty crowded trade lately, it had a great month, this is the xle spdr etf, there is the chart, 50 day and 200 day. Lets look at whats happened its been consolidating, had a nice descending triangle and broke out. Weve seen a breakout. Now, the etf itself is 23 stocks, 39 of those stocks are 2, 39 of the index, chevron and exxonmobil of those 23 stocks 100 are above the 50 Day Moving Average. Thats healthy, all but three are above the 200 day. Chevron not above t exxonmobil broke above today. These are the leaders theyre starting to join the party im looking for what we see recently, if we were to zoom in we see a nice little rounded base and we have a breakout. Like i said, this is a little wonky ipad, these arent the greatest charts in the world but what we have today is a breakout not only in the xle, exxonmobil is above the 200 Day Moving Average, chevron im interested to hear you say that and not to say that this is has gone too far or too over its skis. Not at all. This was the leading sector in 2021, 2022 and its been lagging but over the last four months its up 12 , 7 last month its starting to catch a bit and pippa just talked about it, with crude 83. 5 is a key level, its trading right there, we see a brokeout and you throw in hurricane season, i just dipped my toe in the florida waters its kind of warm, lets see what happens there. Might be good news with unhurricane in the gulf and the price of crude is going to rally if chevron can join the party with exxon we could see a run up to 52 week if not all time highs. Jay, thank you so much. Appreciate you coming over jay wood. Jay, thank you. Coming up, a tug of war for talent Chip Companies competing to fill crucial roles before a labor shortage takes hold. We will bring you the key details when power lunch return s. Following the passage of the chips act Companies Like wolf speed and intel are promising to fill thousands of jobs but with a tight labor market this could lead to tug of war for talent. Kristina partsinevelos has more. 231 billion coming to the chips sector in the next few years or so, and companies that are expanding, building out and realizing how difficult it is to find talent like Lab Technician that is would come to this clean room and go do r d in there. What were seeing is a prime example with taiwan semiconductor. They are delaying their production to the plant in arizona due to a lack of skilled u. S. Workers they are actually bringing this taiwanese workers to work with some of that more advanced equipment. I caught up with the president of the tsmc arizona to ask them about cheap labor. It is more expensive to bring the worker from taiwan, pay them a fair u. S. Salary while in the u. S. And pay for all their relocation and housing and support. It actually makes them more expensive. The chip industry is expected to add 115,000 jobs by 2030 but over half are expected to go unfulfilled due to the lack of talent and training here in the united states. Some Companies Like intel are definitely taking notice we do see that Skilled Labor and the construction as well as skilled lane frommer our fans is something we have to work on companies are working on that by, you know, competing with each other, theres that tug of war thats going on, and we are seeing a slue of new job postings in texas, North Carolina where i am right now as well as new york i have to say the chips act is making some progress, theres 50 Community Colleges that offer some type of semiconductor program, 13 billion going to the workforce training, but overall these programs take a while and it will be even longer until they churn out qualified employees. Kristina partsinevelos. Still ahead, its back to school time and this could be the First School Year to feature ai cools prominently in the classroom. We will explore the benefits and pitfalls when power lunch returns. Has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Dad, we got this. We got this. We got this. We got this. We got this. Yay we got this. We got this life is for living. We got this lets partner for all of it. Edward jones st peak back to school season, while we typically focus on backpacks and shopping, today we want to home in on a key challenge that students and teach evers are being to phase face the rise of Artificial Intelligence in education. In a recent survey about half of teachers say theyre concerned chatgpt will make their jobs more difficult in the next three years. Will it . What should teachers and students and parents and Technology Companies do . Here is discuss are the ceo of the ai education project on set and the founder of waze. Great to have you back with us as well. Alex, youve been working for a couple of years to bring awareness and education about ai into the classroom so youre firmly it sounds like in the philosophy of, you know, ai is here to stay, lets learn and partner with the tools instead of trying to keep them out of the educational system. Is that right . Thats right. The fact is that companies are not waiting to decide whether or not ai is a tool they are going to use theyve moved past the question of should and now theyre focusing on how. How do we use language models like chatgpt to increase productivity theyre moving fast and its a race the company that figures this out will have a huge advantage what that meansdont have the skills to thrive in those companies and to add value to Companies Looking for ai augmented workers they are going to be left behind. If you dont embrace it for those students they will be at a disadvantage in the employment market or secondary Education Market and so forth. Thats right, steve jobs talk about, chat gpt is like a sports car so if you get to high school trying to raise against people in a sports car on a bike youre going to lose. So a lot of the concern about the use and deployment of Artificial Intelligence and im not sure what large language model is, but its there. The ai is a tool that students can use to cheat. In other words to use ai as a replacement for actual learning. What do you think about that and i dont know if you have children or not. If you did, how would you regulate the use of ai in the home so that your children are not using it to cheat . Now, so i dont have children so im not speaking as a parent, but as someone who works in the world of technology and as alex stated the world of tomorrow is what education is about, preparing students for whats to come in the economy and workforce. Ai is going to be a part of that. If youre treating ai like a tool we dont want to use and we ban it and call it cheating when a student engages with it i think were moving in the wrong direction. I think we have a calculator to lean on for example. We adapted School Curriculum to incorporate the calculator which meant school got harder. We had to deal with things like algebra and calculus as a result, instead of sticking to curriculum of the past saying that ai no longer fits we need to update for the modern age which means using ai. Some professors expect ai to be used and have raise the bar on what they expect from students to come to class with. The things to keep in mind is education ultimately needs to teach people how to think. When i use the ai platforms, usually i compare the answer with their giving me this answer but i know this is kind of true or i go to other resources. Theres not a lot of transparency about where the data source comes from and it took me 30 years of both education and being out as a consumer of media to understand you have to know what the source is and what the bias might be and how to filter that. How are people who are five, six, seven, eight years old supposed to do that . How should they be using the tools . That is a good question and its not answered. We dont have research that shows what ages too early to introduce Something Like chat gpt because you are right there is Skill Development that may be stunted if you introduce something so powerful and effective. In a simple way what if its wrong . We are relying on something to give answers that are sometimes wrong because it is new technology. It feels like the worse thing is people can cheat and get the answer wrong, but the worst that could happen is the tool, what, how would someone know if the information is correct . To know whether the information is right or long wrong you have to know what type of information does it tend to get wrong . Its much easier to learn by using the tool and identifying and seeing, effectively making stuff up, learn by doing, its hard to talk about that conceptually. So again we are not advocating for every student to be using chat gpt. In fact very few ai advocates are pushing for that. What we are pushing for is we need to figure out when and how to do these tools and build baseline competencies which include the ability to identify what are the appropriate uses and where are the limitations and where does it not make sense . How do you use Artificial Intelligence so that it helps narrow the Digital Divide between affluent families and less affluent families, families that have computer facilities and resources and those that dont. How do you do that when some of these services, i assume will be subscription and paid models. A really great question. Why it is so critical that ai access and teaching and learning as part of curriculum. We know there are a lot of students who dont have the same opportunities at home, so we level the Playing Field in schools. I think last year when the new York State Public School board banned chat gpt in schools but there were some private schools in new york that not only started to teach ai, they hired prompt engineers, people who understand how to use the ai system to teach students. That is a prime example of further disenfranchising people by not giving them access. So school is a really important place to start and a good equalizer when it comes to content and curriculum. Notable, when we first asked about the arrival of technology immediately they said it was great, a new way of learning like a oneonone tutor. We will watch to see what he does and what the School System does to keep up. Thank you very much, we appreciate your time today. Coming up, a lite titlme left but a lot to give you with other stories we want to talk about. Closing time is next good night hey corporate types. Would you stop calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. 90 seconds left in the program and a bunch more stories to know about. We wrapped up the backto School Segment with the role of ai and education. 82 of americans do not trust ai companies to regulate themselves fairly and on the other hand the survey found that 56 support creating a federal agency to regulate ai compared with 14 who do not. I thought people were not trusting the federal agencies, but clearly in this they dont trust the ai Companies Even or. Even though they are providing education. Now lets talk housing quickly homeowner equity in the could you at 10. 5 trillion in june. The fourth highest monthly total on record according to new data. The average mortgage color had 199,000 in equity. Expensive to tap into it now but it is a good sign of household balance. Speaking of homes, houses are getting smaller for a change. Real estate prices are rising builders are scaling down the size of new homes, in some cases by up to 10 . Report from the Real Estate Consulting found 1 through the homes are less than 2000 square feet. Thank you for watching. Closing bell starts right now. Welcome to closing bell, here at the new york Stock Exchange, this make or break hour begins with another rebound rally along with another round in the battle of tech versus energy. The big Growth Stocks under pressure with oil and gas and immersing price in a indecisive crucial inflation report. In a few minutes we will hear from roger altman with his forecast for cpi and what it could mean for the economy. First talk of the tape, will the cpi numbers confirm