Red after bopping when bob iger said he is confident Disney Streaming offerings refer profitable by the end of the year. Target shares jumping but still some areas of concern. Were going to discuss that coming up. But lets start with todays declines in the broader markets. Mike santoli joining us from the new york stock exchange. Mike, a day like this kind of expected after the rally that weve seen . For sure, court. In fact, maybe multiple days like this just because the s p 500 managed about a 25 gain off the october low. We have only had two down weeks in 4. 5 months. All those things suggest theres room for relatively routine backing up of the indexes. What is going on below the surface is a fit full rotation happening. The big winners in the nasdaq 100 in tech have been giving back some of those outsized gains youve been mentioning. You still have a 50 50 updown split on the new york stock exchange. Its not like everything is for sale. The s p 500 is back to levels we first got to only about ten days ago on the upside. Again, it is pretty much a skimming of the froth. But we would be mindful of just exactly how stupendously overbought things like semiconductors got and other parts of the high momentum areas of this market so you cant just say its a one day and done. Mike, its pretty interesting too as well. Were not going to call it a rotation because maybe its too early to call it that. But not every part of the market is down today. Were seeing some outperformance in financials, some of those valueoriented names. Albeit some have been beating up to heck in themarket these days. Sure. But still the banks jp morgan hits a record high. There is a little move out of certain big tech stocks into other big names like jp morgan. Which is why i dont think the little bit of unsettled markets today is really sending that much of a worrisome macro message. Its not as if people are necessarily panicking about a slightly softer ism services number, credit markets remain pretty sturdy. Cyclicals, industrials and consumer are doing okay if you look at the new high list, too. So everybody should be prepared for a little payback after the run we had. Well see how deep it goes. Mike santoli, thank you very much. Our next market guest is expecting an suspension in the rally in the year ahead but says that is contingent on the fed cutting Interest Rates. Lets bring in kevin monn the president and chief Investment Officer at henion and walsh asset management. Okay, so the fed needs to cut. Yeah. Youre not the only one who believes that. But take us through why it has to do it soon or not. Sure. And lets just remember back to last year when the mag seven accounted for 62 of the total return of the s p 500. Thus far this year, 44 of the return of the s p 500. Take out tesla, and its nearly half of the return of the stock market. So, theyre still dominanting but the bredst is starting to expand. For it to expand further, we do need the fed to start cutting Interest Rates. For the fed to cut Interest Rates we need two consecutive quarters of a slowing economy provided that inflation continues to moderate all the way out to july at the earliest. So for those Market Participants that are hoping for a fed rate cut sooner than that, think again. But then if they dont cut. Yeah. Is it safer to sit and wait rather than make any changes, i guess, one way or the other . Whats the bigger risk, cutting too early or waiting and seeing . Its a great question. We look back to the 1970s as the blueprint for what could go wrong. The fed cut Interest Rates back then prior to inflation coming to 2 . What did that bring on . Double digit levels of inflation. Paul stepped in rose to high of 20 . That brought on a recession. So theyre really trying to thread the needle. Bigger risk is to push the economy into a recession. If youre an informser, to your point, the mag seven pulled back for a little bit without theyre contributing, without tesla, 50 . So you cant afford to not have a significant position in them, can you . And i think they will move higher. Theyll drive the u. S. Economy ahead. Certainly names like microsoft ultimate winner of the ai race, names like amazon who continue to dominate the ecommerce space and nvidia, how can you bet against nvidia at this point in time, especially with the expectation that theyre going to deliver their next generation chip later this year. But there are opportunities beyond just ai. Consider cybersecurity, how about aerospace and defense or even some Consumer Staples and discretionary names. There are other opportunities out there. But for them to really take off, we need the fed to cut. All right. So, lets talk about why they have to cut in the eyes of the market. Yeah. They dont have to right now despite todays market action. They havent really done anything expectations have pretty much gone away for as many cuts as we saw three months ago, six months ago. Yet the market still hovers near record highs. People still get paid 4 to 5 on cash balances, yet they still buy stocks as well. Correct. It seems like everything is going up in value at the same time that the opportunity cost of giving up cash is still relatively high. What gives . I believe that the Federal Reserve wants to start cutting Interest Rates sooner than later. Why would they be forecasting three Interest Rate cuts of 25 bases points this year if by their own forecast inflation will only come down to 2. 4 by the end of this year. I think theyre more concerned with inflation staying below 2 . Remember where we were just three years ago, than they are with inflation actually staying too high. They have difficulties replaying the u. S. Economy. Pushing us into a recessionary period. If the fed does what they suggest theyre going to do and cut Interest Rates by 250 bases points over the next three years, both stocks and bonds should move higher. But we are going to be more selective over the next six months when the economy will slow and when, in fact, theres going to be a volatility. The pullback we are seeing today, i expect more shortterms of volatility ahead. Interesting stuff. Kevin, stay right here for a second because we want further thoughts from you. Target shares are surging after better than expected holiday release with improving margins and traffic, low r marked downs and lower freight cost that helped lift profitability. They are laying out decade long plan in new york city today. I was there. Just wrapped up. Ceo told me that he expects targeter will grow annual revenue average of 4 next ten years by opening po 0 plus stores, investing in current 2,000 stores, expanding same day services and taking advantage of share opportunities. For instance, like macys closing stores, potentially picking up some sales in those areas. Stores will open and areas of population growth, like salt lake city, phoenix, dallas, nashville and those surrounding areas. Theres a huge opportunity in same day delivery that frankly it just needs to fight a little more for. Thats part of why its updating this target circle loyalty program. Theres going to be three tiers. Target circle remains free but now the deals are automatically applied at checkout. Target circle card will replace the red card. Still give you 5 off everyday purchases and twoday shipping but now add extra time for returns. Target circle 360, thats the new paid membership that will start at 49 bucks for april 7th through may 18th then increases to 99 unless you have that circle card, that tier before this which gives consumers unlimited same day delivery on orders of 35 or more, twoday shipping, access to shipt marketplace which delivers from 100 other retailers in addition to target. It has two new private label brands called deal worthy and toys called giggle scape and relaunching up up brand. Investors care about that because target private label brings in third a billion dollars of annual revenue and contribute more than a third to its margins. Target laid out longterm plan to hit the prepandemic level of at least 6 going forward. So, learning what we learned about target, seeing target shares surge, i know retailer is not often an area that a lot of people come on cnbc to talk about when were talking about the growth that weve seen comparatively in the magnificent seven. But when you hear things like laying out a tenyear plan with these, you know, pretty decent growth targets, does it make you any more interested in a name like target . Retail is incredibly important because its an indicator of the health, the wellness and the confidence of the u. S. Consumer. As we know, the consumer accounts for 70 of gdp growth in our country. So i was very encouraged to see the results from target, beating on earnings, beating on revenues. Dus appointed to actually see year over year same store sales go down. Sure. Looking at their forecast for disappointing sales this year. But then what i took away most was them suggesting what i said earlier in this segment. Thats that the u. S. Economy is slowing. The u. S. Consumer is now starting to focus less on discretionary items and more on staples. And theyre being a lot more frugal there. So, if, in fact, everything tha lower tier brands, starting to focus more on 10 and below items, that could actually help them to weather the economic slow down very well. I also like target because they pay an attractive dividend and trading at pretty attractive valuation compared to walmart. Do you focus on big box, costco, walmart, target, that sort of thing . Is there any room for Consumer Discretionary at all, retailers that cater to maybe higherend shoppers, Department Store chains that sort of thing, niche retailers . Are those pretty much tabled for now given that thesis . I believe need to focus on have a brick and mortar presence and also expanding their online footprint. Target has done it. Walmart has done it. Amazon has led the way for years in that area. The American Consumer has made their choice. They prefer to shop online still. And theyre going to continue to look for more discounted items. What better way to do that than through online commerce. So i think those retailers that have that Online Presence can also cater towards lower cost items and not so focussed on big ticket discretionary items will do well in 2024. Very interesting stuff. Kevin mahn thank you for joining us. A check on china. First apple in the danger zone thanks to huawei. Details in tech check coming up. Target is detailing its 2024 targets. Well lay them out when we return after this break. Lets check it out. Says here it gets plenty of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. is it possible to count on my internet get iphone 15 pro on us. Like my Customers Count on me . It is with comcast business. Keeping you up and running with our 99. 9 network reliability. And security that helps outsmart threats to your data. Moaire dida twoo . Your data, too. Theres even roundtheclock customer support. So you can be there for your customers. With comcast business, reliability isnt just possible. Its happening. Get started for 49 a month. Plus, ask how to get up to a 800 prepaid card with a qualifying internet package. Dont wait, call and switch today welcome back. Well, apple once again weighing on the nasdaq today. Trouble brewing at one of its largest markets, china. New report showing iphone shares plunging 24 . Tell us about the details of this report. Huawei is obviously a very big competitor. Thats small but growing. Lets put that it way. Look, the headline here is counterpart research, looking at the first six weeks of smart phone sales in china, compared to a year ago. Iphone down 24 . That is the headline number and the other headline number, like you said, huawei is up the other way, 24 . Honor was up 2 . What does that tell you, it tells you we see huawei making phones again, marketing them kind of as 5g but also doesnt matter. It is bit by bit chipping away at the market share that apple gained when huawei stopped making smart phones for a couple years there. So that is one thing. The other thing thats happening in china is we just know the Economic Situation there, well get into that here in a bit, but the point being, consumer demand is low because of just the weak consumer overall. Then we also know whats going on china wholistically, not just the iphone and the december quarter, the Holiday Quarter for apple, sales overall in china down 13 m . Its not going to get any better. Yes, all of those points are valid. But the Chinese Government has its fingers on the scale here, right . Right. Because they told basically their citizenry and certainly their Government Employees that they didnt want people using iphones. Right . W. Yes. That kind of nationalism going on here. Correct. They were trying to focus on their own brands. Saying we dont want you to use apple. There might be security risks, blah blah blah. Thats probably the reason why. Right . Its a reason why. We dont know the extent to that. Youre referring to some reports late last year that no Government Agencies were basically told, dont bring iphones into the office, dont buy your employees iphones for a lot of same reasons we on the u. S. Dont put tiktok on your work phone or huawei. Thats part of the reason why huawei got out. We dont know how big that was. China down played ate little bit. Apple has been down playing it a little bit. Its unclear how much its that versus the consumer. But yes, to your point, little bit of nationalism playing in. Huawei, Chinese Company by the way, those huawei phones look and act just like an iphone. What is apples defensive strategy to gain some of that share back and more broadly investors and analysts think they can do it . This is not a new formula for apple. They have grown in china despite huawei being in the game for so long. Again, they had this grace period where huawei wasnt in existence basically. What can they do . Everyone is looking towards there ai announcement. I know thats part of it. The other question becomes in the fall with the iphone 16 upgrade, you know, how many people are going to want that is that phone going to be good enough to attract people to either stick with apple or avoid switching back to huawei. How much of a concern right now, we have seen reports that the online sites have cut the price of current model iphones by up to 180 per unit. Thats a concern as well. It can be, but that happens a lot. We dont see it so much in the United States with Price Fluctuations with the iphone, but we do see it internationally. Youll see apple kind of tweak prices in dimpbltd geographies based on Foreign Exchange rates. And other thing. One read could be, yes, its part demand, another read could be its Foreign Exchange, maybe a mix of both. Theres no one answer. Steve kovach, thank you very much with the tech check. Speaking of that China Economy side of thing that steve mentioned, economic targets for 2024. Eunice yoon is live in beijing with the specifics on that Macro Economic environment in the worlds second biggest economy. Eunice . Reporter thanks, dom. Well, the targets are more or less the same as they were last year. But because theyre coming off of a higher base, theyre viewed as more mbitious. So to support growth, the government said that it was going to focus and target a fiscal deficit at 3 of gdp. It will also issue new longterm bonds over the next few years. Some special sovereign bonds as well as some local bonds. And the money is expected to be earmarked for Major National strategies as well as strengthening security in what they describe as key areas. Now, the premier, who announced the targets at the start of the National Peoples congress, admitted that it will likely be very difficult for china to reach those goals. At the same time, he said that the country would stick with its policy approach of being proactive and prudent. Now, what might change, though, was also hinted in the government work report. And more specifically as you guys were talking about technology, that tech reliance and self tech reliance or tech Self Reliance was going to be a priority as well as promotingmade in china brands. Guys . Eunice, theres also a question about whether or not theres going to be any kind of impact from the kind of on going economic dialogue, possibly about trade policy and Everything Else that happens between the United States and china. Is there a sense right now that these targets are achievable in the greater context of its trade relationship and not just the u. S. But the rest of the world as well . Reporter well, because of the potential geopolitics getting worse, that is definitely seen as a hurdle to ch chinas overall growth picture, but on the whole, i think investors should expect that the chinese economy is going to continue to slow down. Weve seen that the authorities here are not really willing to stomach any large stimulus, but one potential way that has been discussed about investingis really to follow the government policy, which is something that people talked about for quite some time, but more specifically that the government is now prioritizing National Security over the economy. And if as a Foreign Company youre willing to help china reach its technology goals, then you might be able to benefit. Fascinating stuff, eunice. Thank you for being there for us on the ground as always. Well, Nuclear Renaissance with uranium prices at a 1year high, companies are seeing renewed interest in the space. That story coming up next. Trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. Get an expanding library filled with new online videos, webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. I could use a little help. Yeah, theres a lot of risk out there. Huh hey, is this thing hard to learn . Nah, its easy. Huh. You know, i think im going to ride it home. Good thing you chose u. S. Bank to manage and grow your money. With our 24 7 support at least youre not taking chances with your finances. Yeah, i think im gonna need a chair. Oh, ohhhh. 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Fisher Investments no, we dont sell commission products. Were a fiduciary, obligated to act in our clients best interest. other money manager so when do you make more money, only when your clients make more money . Fisher Investments yep. We do better when our clients do better. At Fisher Investments, were clearly different. R. Welcome back to power lunch. Stocks are heading lower today and money is heading into bonds sending those yields lower. The bond market is waiting to hear what fed chair jay powell will say tomorrow. Rick santelli is back home safely in chicago. Sadly for us. With more on todays action. We do miss you, rick. Ill tell you what, dom, it was definitely quite enjoyable to sit at the big desk with you and courtney. And youve nailed it. In front of the Humphry Hawkins as we used to call it, House Financial Services committee tomorrow, Senate Banking committee the following day, the markets are giving him a weak i equity market and frothy treasury market. 10 00 eastern, what was going on, 2, 10 and 30s minus 6. 2 on the updated durable goods, biggest month over month drop in nearly four years. Transportation, down. 4 biggest monthly drop in nine months. Then ism services, your employment index. By the way we have two employment numbers this week drops back below 50. All of this, of course, you can see on the charts at 10 00 eastern, any maturity they all move lower. But here is something fascinating. Last year the first leg of Humphry Hawkins, House Financial Services side was on march 8th. But lets go back three or four weeks and look at the chart. This is a twoyear. You see that huge drop. That was 3 8, the day of Humphry Hawkins last year. It had a huge effect on 2 year note yields. Lets keep that same date and go down the yield curve. Here is a 10year, much smaller move. 10year yields at that point in time were basically trading about 15 bases points lower than they are today. The reason i point this out, if youre looking for volatility, definitely want to Pay Attention to 2s, 10s curve especially the short maturity. Theres a lot at stake especially considering all the Inflation Numbers that arent far beyond his testimony in front of the both sides of the aisle. Courtney, back to you. Thank you very much, rick. Appreciate that. Well, uranium prices hovering near the highest level in more than a decade, which is jump starting u. S. Mining operations. Pippa stevens joins us here with more. Pippa, i learn things from you. This comes down from the Nuclear Renaissance we are seeing pushed up spot prices of yur yum, causing miners to restart plants that had been idled. Prices collapsed in 2011 after the fukushima disaster meaning only the lowest krost uranium in australia and canada could still be profitably mined. Now they are betting that prices will stay elevated. They are restarting in wyoming, texas and utah. Total volumes will still be well below the hay day when the u. S. Produced more than 44 million pounds. Meaning the u. S. Will still be dependent on foreign suppliers. Now, canada and kazakhstan each supply one quarter of u. S. Uranium followed by Russia Nuclear power is 20 of the u. S. Grid. Even though russian uranium hasnt been sanctioned due to their outsized role in the industry, utilities are scrambling to secure other and more reliable sources. The ura and urnn both pulled back recently, but those two funds tracked the space and gained a lot of attention recently. I understand prices at 16 years highs, that looks attractive potentially to get back into the market. But what does it take to restart idled production. How expensiexpensive, how long start . Its expensive. It is expensive. And the u. S. Is not the cheapest place to produce it. Much cheaper in australia and canada, which is why those factories did close after we were a major producer just a few decades ago. So these producers are now making this bet these prices will stay at a sustained higher level, kind of above that 100 level. Its about the 75 to 80 is what they need for it to break even. But, you know, there are there is so much momentum behind nuclear, the u. S. Led a group of about 20 countries back in december at cop saying they are going to triple capacity by to 2050 and reading the signals this will be here for the long term. You said russian supplies have not been sanctioned because theyre such an important part of the market. Sort of more of a geopolitical question, is there risk they could be sanctioned . Absolutely. A lot of calls from u. S. Lawmakers, a lot of bills have been introduced saying we should stop the imports of russia because theyre not so much a huge miner but really important conversion and enrichment process. All of these rounds of sanctions in the European Union as well, its been left alone because there is no alternative. Now, the Nuclear Industry is not a just in time industry. You typically have uranium on hand for about two years. So now u. S. Utilities are saying what if russia decides to weaponize uranium and stop sending our way, then what are we going to do. Already theyre renegotiating contracts with u. S. Suppliers. Theyre no longer looking at russia and looking for alternative sources because there is that rick that if russia decided to cut off exports, what would we do . Nuclear is 20 of our grid. Fascinating stuff. Pippa, thank you for joining us. Coming up, cryptos climb to new highs, bitcoin lower today but still big up other the past year. They use a lot of Computing Power between mining and storage. So, is all this Computing Power hitting the grid . Well discuss that next. I am, i cried [ laughing ] i am, said i and i am lost and i cant punch buggy red. Even say why i am, i said Municipal Bonds dont usually get the Media Coverage the stock market does. In fact, most people dont find them all that exciting. But, if youre looking for the potential for consistent income thats federally taxfree. Now is an excellent time to consider Municipal Bonds from hennion walsh. If you have at least 10,000 to invest, call and talk with one of our bond specialists at 18002173217. Well send you our exclusive bond guide, free with details about how bonds can be an important part of your portfolio. Hennion walsh has specialized in fixed income and Growth Solutions for 30 years, and offers highquality Municipal Bonds from across the country. They provide the potential for regular income are federally taxfree and have historically low risk. Call today to request your free bond guide. 18002173217. Thats 18002173217. Welcome back to power lunch. Independent arizona senator Kyrsten Sinema says she will not seek reeex. The move will avoid a rare threeway contest for the pivotal seat. The senator had been running out of time to launch her reelection campaign. She was facing an april 1st deadline. The Education Department imposed a record 14 million fine on Liberty University for violating federal Campus Safety laws. The large Christian School in virginia is accused of failing to disclose on campus crimes, including sexual assault. And twotime grand slam champion simona halep has been cleared for an immediate return to tennis. The court of arbitration for sport reduced her fouryear doping suspension to just nine months. They found the former world number one was not entirely at fault after testing positive for a blood boosting substance at the 2022 u. S. Open which they determined was the result of a contaminated supplement. Back over to you. Kate rogers, thank you for the news update. Stocks are pulling back here today from near record highs. The dow is down at session lows so far right now. But so is bitcoin. Its pulling back as well. Trading you can see there just around that 65,000 mark briefly setting the new record above 69,000 for the First Time Since november of 2021. An interesting stat since our data on bitcoin began back in july of 2010, bitcoin is up, this is not a ypo, 70 million . Million . 70. Join us now with more on the rally, to record highs is mackenzie, we see it, some people just choose they dont want to believe it and some people are skeptical for good reasons, but this run has been stellar. Yeah. And there are a lot of drivers of this record rally. Some simple, others a lot more complicated. So lets start with the biggest and most obvious. Thats the approval of biscoin spot etfs that happened in early january. Bitcoin is up more than 50 this year. In less than two months the ten u. S. Spot bitcoin etfs brought nearly 50 billion into the space. Blackrock Ishares Bitcoin trust is the fastest an etf has ever gone from 0 to 10 billion in assets. Now lets get slightly more complicated. Bitcoin has always been front and center when investors think of crypto, many in the industry favored ether because it has more practical use cases. Now innovations may allow bitcoin to reach technological parody with ethereum and all of that is encouraging investment in new tokens on the bitcoin block chain with much of that interest coming from asia. The price moves are also being driven by momentum. The higher it goes, the higher it keeps soaring. This is such fascinating stuff. Many of us are trying to get around our hands of bitcoin in either direction and the movers. For more on the bitcoin rally and crypto trade overall, lets bring in managing partner at knee owe classic capital and former trader at goldman sachs. Mike, mackenzie laid out a number of reasons why we see bitcoin going higher. Her last point to me is the most fascinating, momentum. Starts going hire and just keeps going so. What are your expectations for where the price of bitcoin is going and what do you think the biggest drivers are and will be. Sure. So you mentioned 70 million . The most amazing part is that bitcoin hasnt changed at all. Bitcoin stayed exactly the same from day one. The world around it has changed quite a bit. So you think about in a different way. People arent necessarily buying bitcoin. Theyre selling things that arent working anymore. Its almost like theyre handicapping the global governments ability to navigate the next few decades. Its a live bet on the Central Banks ability to land the economy. Clearly between me and coins being the best assets the last seven days, crypto punk selling for 16 million, funding rates doing through the roof, theres obvious speculation. The Intrinsic Value of that option of built coin versus the rest of the world continues to grow. So i think thats where youre getting a steady base of inflows but the speculative piece is that day to day price fluctuation you see. The spot etfs, the money theyre taking in is fueling this demand. Youre having more i guess fundamental institutionalized demand coming through. It wasnt that long ago we were talking about black market stuff. Right . This idea that we were using things for elicit trade and all of the bad cases for use of bitcoin was coming about. What exactly then does this next leg look like . Does it include that conversation all other again . Yeah. I didnt want to repeat the block rock infidelity comments everyone said for the last three months. I would say thats obviously a credentialization of the asset class. Well use the term financialization of the asset class being bitcoin, being traditional assets, being part of the traditional asset optimal portfolio. A friend of mine does crypto for one of the largest firms in the world he mentioned monday was his largest day ever from those constitutional clients. You have both the Retail Market and obviously thats a large part of the market these days both in stocks and crypto as well as the institutional size. Everyone is very excited about it. Its definitely changing the scope of public assets. So obviously a lot of viewers of cnbc will be trading things miners, coin based stock, micro strategy, all different drivers. Those wails will drive some of the invasion mack mentioned around bitcoin machines. Because they have the ability to sort of allocate bitcoin value to those platforms. Coin base is obviously decentralized neo bank of the future and building things like base and the miners are fairly interesting because theres enormous alpha to be had post having. Look at the lowcost scaleable miners outperforming some of the ones that will come into pretty difficult time. I think between all the assets theres really interesting opportunities to trade each of them. But obviously the etf flows have been the story of the last six months. Can i make one other point on that . Please. Whats noteworthy the Asset Managers and ras havent cleared the etfs yet for their clients. Another wave of interest which goes to a larger point that mike was just makesing, youre going to see a lot of the supply go away, the market having the coming up in a couple weeks. Its naturally designed to create scarcity around this asset. Okay. A lot of people were still trying to grasp the having concept. This idea that youre not going to have the growth of supply of bitcoin be nearly as robust as it was prehaving. Thats the whole idea. It happens roughly every four years. It cuts the supply in half. The new circulation. Its baked into bitcoins code. Its a naturally meant to have this deflationary effect. Youre seeing a lot more companies building on top of bitcoin that layer two ecosystem and theyre scooping up a lot of the supply. All right. Mike, all of these things are huge. Right . But theres still going to be power usage that becomes an issue at some point. We talked about ai and data centers and how much power theyre going to use. How much does crypto currency factor into the future Energy Profile of not just this country but around the world if its use is to hypothetically keep going on its trajectory right now. It is part of a major part of transition to clean energy. You think about whether it be stranded energy or scaleable alternative energy im full disclosure on the board of tera wolf we power through Nuclear Power and hydro power, two of the cleanest forms of power in the world and continue to scale out those facilities. Theres this push and pull now between the mag seven looking for alternative Power Sources for their ai applications and the highpower compute that comes across that and demand on some of these data centers. And so i think for a lot of the Global Bitcoin miners theyre going to constantly need to seek the lowest cost of capital or lowest cost of power, i should say, to continue to mine bitcoin because it is a clearcut. We had a run in bitcoin, but there has been, you know a cut in supply. So every block of bitcoin youre mining, theres less revenue associated with that. So i think the lowcost miners will have an opportunity post having to get through their own little distress cycle and either acquire or scale profitably if they have the ability to do so through scaleable mining sources. Thats an interesting concept because you know its a way that most hedge funds traded this sector for a period of time and there will be material alpha generation versus basket trading versus bitcoin 70 million percent. Never done any mna, a beautiful, simple product. You know, there is this dynamic of Bitcoin Mining creating a financial incentive to do more renewable buildout. I was in ethiopia and kenya seeing hydro power because bitcoin miners are creating financial incentive that didnt exist before. So youre seeing that dynamic at play globally. If you look at texas, a lot of miners who say theyre helping to stabilize grids. When you on board on to the grid thats a good thing but you need a base load. When there isnt the supply there, you can help round it out. So it is an interesting dynamic there. And theres a point where we between ai and Bitcoin Mining and otherwise, we need to secure alternative sources of power. That taps into base load power were in trouble. But its very exciting whats happening right now with flows. I think whats more exciting, what my firm focuses on is more around innovation happening both on the bitcoin block chain and ethereum and ore forms of smart contract and decentralized on Chain Capital markets. Both in the consumer side and the finance side. I think thats really at the end of it, bitcoin is extremely simple and wonderful and you always continue what we say stack stats accumulate bitcoin other time. Dont try to time the market unless youre a professional trader. It goes to show you stacking stats is as simple as the asset itself. Case in point today, guys, we topped 69,000, trading at 61,000 handle right now. Mike, thank you very much and mackenzie. Mack, thank you. Excellent reporting as always. Still ahead on the show, elon musk is no longer the worlds richest person, but thats the least of his problems this week from a suspected arson attack at tesla berlin to lawsuits from former twitter exectist. Our next guest will tell us if now is a good time to be a tesla shareholder, maybe buy the dip. Power lunch is back in two. Wall street forecasts over 100 billion in sales for antiobesity drugs known as glp 1. But these treatments are largely administrated through cumbersome injections. Enter Lexaria Bioscience with their patented oral delivery technology. Early studies were glp1 suggest reduced side effects and better blood sugar control with reduced spikes. Lexaria bioscience. Transforming the future of glp1 drug delivery. Ah, these bills are crazy. She 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. Welcome back to power lunch. Time for todays threestock lunch. Here with our trades is david trainer, first name is tesla, down nearly 25 in the last three months. Which means elon musk is no longer the richest man in the world on paper. Losing the top spot to jeff bezos. David, whats your trade on tesla . Still this is a no brainer. In addition to extreme valuation risk, were now seeing real Earnings Quality risk. The stock now gets our strong miss earnings distortion score. It was one of the top five stocks in the s p with the most misleading earnings. And we think this is a sign of more bad to come for a business thats competitively challenged, losing market share, seeing profitability erode, and really not able to keep up with its competitors anymore. All right. Its down 1 over 9 other the last 12 months. Well see what happens there, down 28 year to date. Next up, lets talk about lithium miner albemarle, market seems to view it as a sign of how difficult the Business Environment remains for lithium companies. David, is today a good buying opportunity for albemarle shares . We think so. We think the stock is cheap and underlying economics are strong. We also think there are major macro tail winds coming in the commodities and specially Chemical Development markets because both china and russia have really china through super low cost labor and russia through just dumping kmod tis on the market for most of the last 20 years, we think those trends are coming to an end. And theres going to be an enormous amount of on shoring and production of specialty chemicals. And thats going to change the landscape for these companies and now is a great time to pick up albemarle at a good discount. Those macro tail winds is something most people dont see but will make a big difference in the last five to ten years. Gold, Commodity Trading near alltime highs. Whats your trade on bark cold, one buy and one sell so far. Courtney, you took stole my thunder. What else do you have to say besides that. Its difficult to buy anything commodity related when its at an alltime high. Sure could run up more, but then really its it is hard to buy anything commodity related when it is at an alltime high. Sure, it could run up more, but then it is even more of a speculation than it already is. I think the commodities are a very speculative investment vehicle, as it is. And look, the fact of the matter is, gold is seeing competition in a way it didnt before. The cryptocurrencies are really taking share from gold as an investment, and that is a trend that is not going to reverse any time soon. The price at an alltime high. The company, barrick gold, the economics of the business have been poor, always have been, it is a shareholder value destroyer. We dont see a lot of reason to believe there is a lot of upside selling. David schrader on new constructs. We appreciate it. Thank you. Thank you very much. Still ahead, serge is getting candid about googles gemini launch. We will hear with the cofounder had to say, next. Sounds incredible. Lets check it out. Says here it gets plenty of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. get iphone 15 pro on us. Heres why you should switch fo to duckduckgo on all your devie duckduckgo comes with a builtn engine like google, but its pi and doesnt spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. And theres no catch. Its fre. We make money from ads, but they dont follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. We have just three minutes left in this show and several more stories we want you to know about, so lets get right to it. The Consumer FinancialProtection Bureau unveiled a new rule today that would cap the leafy banks charge customers at eight dollars per incident. These usually average around 32, so the cfpb says the cut would save more than 45 million card users an average of 220, annually, on late fees. It also, at that level, implies that there are a lot of people who are late multiple times throughout the course of a year, on thursdays. I was thinking that, too. You are focusing on credit card delinquencies and what that means or how that could sin consumers, maybe financially, as we are still on this rising Interest Rate or high Interest Rate environment. Its very fascinating. We will see if this works. Obviously, President Biden really has been at work, in these socalled junk fees. Over the weekend, google cofounder sergey brin said the company definitely messed up the gemini launch. Brin said it was not was due to not thoroughly testing it, and for good reasons, upset a lot of people. Is is one that we keep talking about, the gemini launch. Some misrepresentation of historical figures and otherwise. And it is not just that. It is about this idea that ai is in such an early part of the game, early innings of what is happening right now, that there are going to be these hiccups, but these ones just became so highprofile and so egregious that people had to come out and Say Something about what happened. Very much so. But i guess, good for them for admitting that they messed that up. After a year of hot controversy, harvard has regained its position as the ultimate dream school among college applicants. The Ivy League University bested last years dream college, which is m. I. T. , the Massachusetts Institution of technology, to secure the top spot, according to a new survey from the princeton review. The changing paradigms and economics of College Education and secondary education, just huge here. But harvard, i think at a certain level, people do, if they have the chance, want to go to harvard. I guess harvard is probably very lucky that it is hard to destroy that hundreds and hundreds of years of brand image with one person. But there is a lot of stuff going on. Very true. It has been a fascinating youre listening to my friends, anecdotally, apply to colleges, and see which ones do not. Delta became the latest airline to raise its checked bag fee, this time by five dollars beginning today. It will cost travelers 35 for the first checked bag, 45 for the second checked bag. This is the second baggage increased by delta since 2018. The company says this will help them stay on peace with rising interest costs. The airlines saw how much money they took in. The balance is tough. Overhead bin, check the bag i know. Anyway, thank you very much for watching power lunch. Closing bell starts right after this break. Power e trades easytouse tools, like dynamic charting and riskreward analysis, help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from morgan stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from morgan stanley. vo what does it mean to be rich . Maybe rich is less aboutu reaching a magic number. And more about discovering magic. Rich is being able to keep your loved ones close. And also send them away. Rich is living life your way. And having someone who can help you get there. The key to being rich is knowing what counts. This thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Welcome to closing bell, i am scott wapner live from cnbc local headquarters today. This make or break our begins with tumbling tech. Whether this is the start of a bigger pullback for that sector. We are going to ask our experts over the final stretch. Meantime, take a look at your scorecard. With 60 minutes in regulation, nasdaq is the center today. Apple, that stock is around 170 for most of the session today. Barely hanging on ther