Emerging says one analyst and its not too late to get in on the action he is here with the trade and the upside of this industry. Now a check on the markets the major averages are rebounding, but the chart of the day right now once again goes to new York Community bank corps. Believe it or not. Down more than 40 so far on reports thousand that the bank is seeking a major Capital Infusion from outside. And thats where we are going to start with these green markets, a very deep red picture, and leslie picker has the details on nycb so it appears to be that this would be an Equity Capital raise, and that they reached out to a variety of investment firms. My understanding in talking with a couple of indirect sources over the last few minutes or so is that this is likely a lot of these conversations are more in the private realm opposed to public investors and that they have been going on for quite sometime, because one of my Big Questions was, why is this coming out on a wednesday typically when Something Like this happens, it would be pulled together over a weekend because if it does leak to the market, Something Like this could happen you could see shares down more than 42 so it sounds like these conversations have been ongoing. That was something when the company hosted a Conference Call earlier last month, after moodys downgraded some of its credit ratings, the chairman at the executive chairman at the time newly appointed, ultimately became ceo last week. But at the time, he hosted a Conference Call withable abnaly and said everything was on the table in terms of shoring up confidence in the company. So Capital Raise is certainly something that people have been questioning for quite some time. And analysts, at least one analyst put in a report that, you know, it was possible that an Equity Capital raise could be coming there are other options, as well, that they could consider but at least according to reports from the wall street journal and reuters, this is one that is in focus right now, and a raise at these depressed valuations, 1. 86 a share, would be obviously dilutive to shareholders at these levels since they have plummeted so significantly this year. That bit of news, like you said, would make a Capital Raise much cheaper for somebody who would look to come in and inject that capital at these depressed prices you covered a lot of these Regional Banks and the failures from last fall these are some of the levels kind of below that 2, 3 per share mark, where there starts to become speculation, at least about deal talks, right . About maybe who is going to come in and buy them, what it could look like. Outside of a direct infusion from an outside source, is there a chance this gets taken over . I havent heard anything about actual takeover talks at these levels i mean, there are a whole host of regional stocks that were a dollar a share during the crisis ultimately they rebounded and still with us today. So its really difficult to tell kind of which way the fork in the road goes for new York Community bank but obviously, its a dire situation. Its one in which, you know, there are likely a bunch of investment firms that play in this area, are taking a look but there are asset sales that would be on the table in order to tighten up that Balance Sheet a bit more discussions with investors it sounds like a lot of those are involved in private investors at this juncture so well see what happens. But its obviously a very precarious situation, and a plummet of 42 today makes things more challenging for this company. Well watch those shares for sure leslie, thank you very much. We want to get to the other big market story so far right now, thats fed chair jay powell wrapping up day one of his testimony before the House Financial Services committee reiterating that he expects Interest Rates to come down this year, but isnt ready yet to say just when. Steve liesman is here with more on those details day one of the testimony formally known as humphrey hawkins. What did we learn headline wise, steve . I think the headline is the Federal Reserve is the chair sees the economy continuing to remain strong, sees the labor market continuing to be strong, as well. But also he sees inflation coming down, and this that context, he said that hes he believes that Interest Rates can come down significantly over the next several years not just this year, but also next year. He also, i would say, dom, put the bar not as high as maybe we thought it was he said theyre just looking for a bit more evidence that inflation is continuing to come down and also in that context, were looking for better inflation readings not better inflation readings than we have had, just the same ones weve had. I dont know if we have that bite, if we could run it, guys if not, i think ill just paraphrase it, dom okay. Just paraphrase it for us here just that, he said were looking for a bit more evidence, the same Inflation Numbers we have, not better numbers we reiterated what hes said in his press conferences before, that the fed can begin cutting before the inflation rates get to 2 . So thats the remark that was getting the most attention there, one of them steve, stick with us here. Also joining me on the conversation is the chief Investment Officer and a cnbc contributor. And mark zanldy, chief economist at moodys analytics peter, ill start with you just because youre sitting next to me the comments, the takeaway here is maybe, trying to, again, temper the expectations that the market has the markets been tempered over the course of the last three to four weeks, arguably has anything really changed with that picture nothing today i think powell just reiterated what we heard from a lot of other fed members. Hes juggling some complicated stuff here its not just okay, we raised sharply. Were going to tweak here and there and cut a little bit i mean, twoyear inflation break evens or 50 basis points over the past month gasoline prices are at the highest levels since early november container shipping prices have jumped so i mentioned that, because goods prices have fallen sharply, but now are at risk of rebounding again, while the service side could continue to moderate with rental prices. The point being that theres a lot of confusing mixed messages here i dont think jay powell, its in his interest or really even can push that much ahead in terms of expectations, because he doesnt even know i think he does not want to start cutting rates and watch inflation rise right back up in his face again, and he whats being restricted right now the markets are not being restricted if you have a commercial real estate loan, yeah, youre being res restricted but the restrictive or not restrictive policy, it depends on who you are mark, the central bankers in america, and even fed chair jay powell today alluded to this, that the strength of the econom is what is leading to the ability to be a little more patient with regard to the ability to cut Interest Rates or have to cut Interest Rates does that still play out now, given this transitionary, confusing data that we have . Well, my view is the economy is resilient, its fine, its okay, but it feels soft to me in some key places. The job market in particular you look under the hood. For example today, we got data from the Job Opening Labor Turnover survey. You can see hiring rates are way down from where they were, and across the board, across all industry hours worked have fallen sharply, really back to levels you dont see except in a recession. The only thing the labor market that is keeping it together is layoffs are just extraordinarily low. It just feels very fragile to me and then the Financial System, all this discussion around nycb, thats symptomatic of a broader set of stresses on the system, that goes right back to what the feds doing. So its a balance of risks its a matter of judgment. In my view, the risk is now higher that the fed is going to keep rates too high, too long, undermine the economy and the Financial System a and to what end . In my view, they all but achieved their target at 3. 7 employment, inflation is coming in nicely. Exclude the cost of shelter, and were back to target and then some so why why maintain this tight policy in the context of an economy that, you know, is, i think, a bit fragile. Steve, can you put the risk reward story on it for us i understand what mark is saying i also understand what peter is saying but theres a conversation thats being had right now among all of these central planners about where the greater risk lies is it the fact that we could set ourselves into a deeper recession, or is it that inflation rears its ugly head in a fairly significant way all over again whats the balance of scales right now . Dom, youre a reporter, you have two smart guys making good points on this, and you end up in the middle here on this i think i like peters point, which is something ive been talking about for a bit, which is if it aint broken, how much fixing should the fed do to the funds rate right now i dont know that i see all the fragility that mark sees we may have had a bout of economic weakness in january that might have been more weather related and oneoffs than we had actual gathering weakness in the economy. And i also think that the feds litmus test for cutting rates is not that heavy right now we talked about that a second ago. The idea they want a bit more evidence i think theyre going to cut, but i think theyre going to cut modestly and see how things go i do think the bigger issue here begins whether or not the fed can do the Monetary Policy walk and do the regulatory chewing gum at the same time by that, i mean can they work with the banks, and i mean the treasury and the Federal Reserve both and other bank regulators, to get them to shore up their Balance Sheets and make sure this Office Real Estate thing does not become systemic risk, while they take their time and do what just the economic fundamentals suggest they ought to do for Interest Rates so i dont know if thats possible but if they are, indeed, working as the chair says behind the scenes with the banks, we can maybe take that off the table and say, you know what theres going to be losses and risks, maybe some Bank Failures here, but that does not become a systemic issue that should drive the train when it comes to Monetary Policy. Lets add another layer to this everybody stick around, because where the rubber meets the road is in the bond market and Interest Rates lets bring in Rick Santelli for a closer look at the move we are seeing in yields so far today, we are seeing a bit of a move higher in Government Bond prices, and a move lower in those yields absolutely, dom you know, we could all talk about the stronger economy, but the stronger economy at a period where we have so much debt, would most likely have a larger effect on whats going on in longer rates but everything has been going down say anecdotal evidence if you please, but some of the spat of weaker data is what many investors are hanging their hat on theyre making a bet that will continue if you look at 2s and 10s on one chart today, were making our low yields of our session around the weaker data, whether it was aep or the benchmark revisions, the one traders paid attention to was last month, went from over 9 million to under 9 million. You can call it anecdotal if you want, but theres been a lot of weaker data and weve been cascading lower. Boom, right before low, the new York Community bank story hits the wires, and thats what moved the market look at the timing of Interest Rates against that stock before it was halted. The timing matches up perfectly. And i agree with everybody today, the line that all of my sources found the most interesting is, we dont need to see 2 to start easing you could say what you want about that comment, but when you put it together with almost likely the highest rates are here, most likely were going to cut this year. If it seems as if Steve Liesman deems this dovish, its hard to argue with that. Jay powell certainly seems like hes looking for any excuse to find that doorway to walk through on the easing front. Finally, if you look at the longer charts, one month on 2s and s10s, were a little longer term than one month on 10s based on where they are set up now and we havent had any big debt auctions debt auctions next week, youll see the influences, because a lot of the good news is built in the market this weaker database is going to be imperative to keep these yields down where theyre at Rick Santelli, thank you very much if that wasnt enough in terms of layers for you, we have more to lay on top of that mortgage numbers came out this morning, and demand shot up even as rates didnt move that much for mortgages. Diana olig is here to tell us the context around that story in housing and why people seem to be transacting a bit more. And still, Mortgage Rates remain stubbornly high, above 7 and still there now. The average on the 30year fixed is 7. 03 , according to Mortgage News Daily and it didnt move last week so demand for mortgages from home buyers shot up 11 compared with the previous week 8 lower than the same week one year ago one note from the Mortgage Bankers association, fha loans drove a lot of it. These are loans often used by firsttime buyers because they have lower down payments so it showed how sensitive these buyers are, because rates didnt go up. So they also pointed to new listings in fact, there were nearly 15 more homes actively for sale in february compared with a year ago, and homes priced in the 200,000 to 350,000 range grew by 25 from a year ago, outpacing all other price categories so were now looking at the highest inventory overall since 2020, the start of the pandemic. So the big question, dom, will all that new supply take some of the heat off of the home prices, which are still hitting record highs. This is the ka anyconundrum. Lets bring everybody back into the conversation peter, i will start with you here again the housing dynamic is one that is going to perplex and make the feds job that much harder shelter costs you mentioned and mark mentioned it, a higher percentage of some of these inflationary stories is it enough, this dynamic, to get the Housing Market going to bring some of those transactions back and netnet, will that be good for the economy and the rate picture Going Forward so add what diana said, you need a lot more supply you think where is that going to come from . Ive been saying you need baby boomers to start down sizing i dont see any other massive amount of supply that can come from, other than that area, in addition to new builds so i see this existing home market that could last and for every new home thats not bought, a new one or a new buyer buying an existing home, theres now paint, carpet, flooring, or stuff thats not transacting in, because no one is moving. So this is a very difficult situation. Even lower Interest Rates, im not sure if that will make the difference on the supply side. Mark, how pivotal is the residential Housing Market and its unlocking, its unfreezing to the next step possibly, hopefully, hypothetically higher for the u. S. Economy dom, let me answer the question a little different way, bringing you back to the fed if you look at inflation, and if inflation is above target because of the cost of housing services, you want to get that down to peters point and you need more supply, and the way you get more supply is you ease up on the Banking System you bring down Interest Rates, allow the yield curve to become more sloped, so banks can extend more credit to the multifamily Developers Talk to any multifamily developer, particularly in the affordable part of the rental market, the biggest problem is getting any credit at all at an Interest Rate that makes economic sense if youre at the fed, you think how do i want to get inflation back down to target . I need to get more supply. And the answer isnt higher Interest Rates, its lower im not arguing for aggressive interest cuts. Lets just quarter point each quarter to get more supply and get inflation back in the bottle steve, you keep kind of moving your head around here i feel like youre chomping at the bit right now. What do you think . Well, i just want to point out how much i love diana and how great she does covering the real estate business but its only one component of the economy. And i dont think its an important component. I dont want to down play it but i want to point your attention, dom, to the business round table survey today it came out, its up double dim double digits. Sales expected sales cap ex, both up double digits. So when i look at the outlook for the economy, that places another big factor for me in whats the what the fed ought to be doing and what the outlook ought to be. And theres notion out there from bostic, which is a little more hawkish here, which he said hes concerned about this pent up exuberance thats out there this business round table survey kind of goes along with this pent up exuberance issue, which is something that the fed has to watch out for. When they start cutting, is there an avalanche of investment that ends up stoking future inflation . Diana, last word. I think theres an incredible amount of demand lenders are telling us that sellers are buying down Mortgage Rates to get that buyer from 7 to 5 so i think youre going to see this wave of demand if we do start to see those rates come down, and its a wave that i dont think the builders are ready to handle. Great conversation. We could go hours for this one peter, mark, diana, steve, thank you all very much. Well see you hopefully all again soon by the way, dont miss steves exclusive interview with the cleveland fed president right here on the exchange tomorrow, 1 00 p. M. Eastern, given everything we talked about today, its going to be a key interview, mustwatch tv coming up, openai is firing back at elon musks lawsuit, releasing some explosive emails contradicting what he has said about some of the inner workings over at openai well break it all down. And look at microsofts latest ai head winds up next. Plus, were in the midst of the biggest biotech rally in nearly a decade, according to jefferies. Well look at the fear of missing out trade taking place in that industry and where we might see more m ja a in the ner term the exchange is back with that story after this captivating music the first law of thermodynamics states that energy cannot be created or destroyed. but it can be passed on to the next generation. when i was your age, we never had anything like this. But it can be passed on to thewhat . Wifi . Ation. Wifi that works all over the house, even the basement. The basement. So i can finally throw that party. And invite shannon barnes. Dream do come true. Xfinity gives you reliable wifi with walltowall coverage on all your devices, even when everyone is online. Maybe well even get married one day. I wonder what i will be doing . Probably still living here with mom and dad. Fast reliable speeds right where you need them. Thats walltowall wifi on the xfinity 10g network. Welcome back to the exchange. The fight between elon musk and openai has entered a new round with the startup publishing a trove of bombshell emails from elon musk himself, and a microsoft engineer sounding the alarm about the companys ai tool copilot. So lets tackle all of it with our deidre bosa. Also steve kovak steve, were going to start with you, and the latest on these emails just how important, significant bombshell, if you will, are they very bombshelly, if thats a word what these emails show, and these are internal emails between elon musk and openai executives, from 2016, 2017, showing elon musk contradicting many of the things he alleged in his lawsuit last week. That includes, you know, in the lawsuit, elon musk says openai needs to remain a Nonprofit Organization in the emails years earlier, he said they need to be a for profit organization, or let he says let me take it of as ceo, absorb it into tesla, which is also a forprofit organization and saying you guys need to raise a billion dollars yesterday in order to achieve what you want to achieve so all of it flies right this the face of many of the most important allegations here he believes that openai should go back to its original mission of being a Nonprofit Organization but if youre an openai lawyer, youre going to be giddy to ask him why he said the opposite before he left the Company Exhibit abcd. This is discovery before discovery happens. Musk is mentioning Alphabet Google in some of these emails, as well. Theres four emails, and he mentioned google 12 times. What this really tells us is back then, and he says when google was worth 800 billion in market cap, they seemed uncatchable. What elon musk says in these emails is that google is so far ahead, that it would be nearly impossible for openai to catch up with google if it doesnt have the right tools, the right funding, et cetera he points out, he says so we talked a lot about how google has pioneered Generative Artificial Intelligence Technology but more recently, has botched the rollout of its key flagship product, which is gemini so this raises a lot of questions that investors and onlookers have been asking in recent months. Is the management the right management to lead google in this incredibly important era . And elon musks emails are a reminder years ago how far ahead google was so to be at this position when its seen as lagging behind is remarkable seen as lagging behind. Theres a company that its lagging behind, and thats microsoft. Lets talk about that more cnbc spoke to one microsoft engineer who is warning about the risks of the companys ai tool this is copilot deidre, copilot is the successor, the next iteration of kor cortana. What is the danger and what is the flagging being done right now by some of these people like the engineer at microsoft . Right so lets be fair when we get a new generative ai chat bot, theres problems since chatgbt came onto the scene, theres problems with misinformation, bias, fullon hostility. We talked about geminis problems, its image generation, by diverse in situations that dont call for diversity this is the latest and centers on microsofts flagship generative ai product, copilot. This amazing article that was written, this report at cnbc shows that theres even internal concern. She talked to an insider at microsoft that has been called red teaming, casting out the chat bot and finding whats remarkable about this is entering a simple prompt, like pro choice, is bringing up disturbing images. When we talked about botched rollouts, its people talking about cherry picking, looking for things and trying to almost trick the chat bot into saying things it shouldnt be saying. In this case, very serious. Just asking for pro choice is bringing up some disturbing images. So google has a problem on its hand, and unlikely this is what well see from my chat bot. It reminds us how early we are, and these bias, misinformation problems are going to be with us throughout for the next few years. Thats going to be especially important in a year like this, which is an election year. Steve, last word here. There was such a race to get out of the gate for these things, that people wanted to plant their flags so quickly in this process, that you could argue some of that rush to market is what led to some of these early stage, early inning, because thats what it is, messups. Right. Is there a feeling right now that the Artificial Intelligence rollout that were seeing could be hampered in the public view because of such public mishaps that have happened with the biggest players when it comes to rolling out Artificial Intelligence . Yes and no. Its not just about the mishap and the fact that you put in this prompt and you get some nasty images back or maybe some people felt that googles gemini what you should be paying attention to here with this Microsoft Case is, this engineer has been flagging these issues internally through the proper channels for, i dont know how long, but for a while. He wasnt being listened to. Microsoft again, he put it out publicly. Microsoft told him to take it down. He was reporting it internally as youre supposed to. Nothing happened. The fact that this person felt he had to go to cnbc and tell them, the fact that he had to go to the ftc, write a letter to microsofts board, tells you when this started a year ago, we had microsoft and everyone saying were going to do it smartly and safely, telling us that were going to be safe and secure and so on and so forth. But when their own internal people are telling them, these are problems, these are happening, these are against our policies and they do nothing until it gets reported in the press, that should lead skepticism every time one of these Companies Come out and say were doing this safely, just trust us, because it just takes one example to prove you guys arent taking it seriously internally. This is emblematic, its not just a microsoft problem, in this rush to get things out, theyre willing to put some of those positions aside in order to get it out faster and quicker and cheaper. So its i have a heavy dose of skepticism moving forward when you hear these Companies Say were developing ai responsibly, because we have evidence theyre not. Next chapter, more news to come tomorrow on this. Thank you very much. Coming up, retail earnings roll on with American Eagle, victoria and victorias secret. Thats all ahead in earnings exchange. Rylee from rylees realty hi this listing 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. at pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Ameritrade is now part of schwab. Bringing you an elevated experience, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. And sharpen your skills with an immersive Online Education crafted just for traders. All so you can trade brilliantly. Welcome back to the exchange. Im tyler mathisen. An attack on the bulk carrier true confidence by Houthi Rebels has killed several members of the crew, according to u. S. Officials. Meanwhile, the United Kingdom maritime trade operations said that the remaining crew have abandoned ship. It is the first fatal strike in the rebels assaults on red sea over israels war against hamas. New York Governor Kathy Hochul is enlisting the help of state police and National Guard following several high profile crimes in the subway system. She said this will add up to 1,000 more people to the teams that are patrolling the subways. New york prosecutors dropped their case mid trial against the three men accused of conspiring to possess hand drafted lyrics to the Eagles Hotel California after emails prompted the defense to question the trials fairness. Dom, back to you. Tyler mathisen, thank you very much for the news update. Coming up, biotech stocks are up 50 from their recent lows. So how can investors still get in on that health care trade . Outh, mi us st has some idea abt atcongp. 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. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Investment objectives, risks, charges, expenses 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. Welcome back to the exchange. The s p bioetf up 26 after years of underperformance. Our next guest says we are in the midst of the most pronounced biotech rally in over five years, but he also says its not too late to still get in on the trade. Joining me now is jared holtz, analyst at mosuho securities. Thank you very much for being with us. The Biotech Sector was maybe due for a little bit of a bounce. Its been such a terrible few years since covid. But take us through whats been driving it, and why there is still more upside in just certain parts of the market. Dom, thanks a lot for having me. Yeah, so i think, you know, looking back on the past few years, its been a very challenging backdrop for biotech. This has been one of the worst spaces in really all of the equity market since mid 2021. Mike we barely seen any positive activity for any pronounced period of time until very recently. And i think for that reason, were finally getting this index flat over a multiyear period, whereas so many other areas in the market obviously including the s p, have done far better. I think when you consider the risk factors that we have spoken about before, with respect to drug pricing and other elements of the business, the amount of companies that comprise the index being verimy mplentiful, of these risk factors are much more well understood and we can continue to move higher from here. Okay. So now that the perhaps context around covid, which was kind of behind that surge from 2020 to 2021 is done, were now left digesting glp1s and the new trends there, and the skyrocketing valuations we have seen for Companies Like no novenovemo nortis. Where can you get in . Just given the excitement and appetite that investors have for this one area, there are a bunch of smallcap biotech stocks thats as have drugs in the glp1 category, terms pharma, there are other ways to play obesity, and yes, we have seen this category explode, you know, the combined value for these obesity drugs, if you add novo plus lily, is probably north of a trillion dollars. So theres definitely room for more players here. I think its just going to come down to the investment needed to move the drugs through, and how theyre going to eventually compete with the two largecap pharma players and just the, you know, looking at manufacturing alone and going to market, very expensive. But there are other, you know, ways to play the group. Those are two right off the bat, but there are many others. Lets go glp1 aside, lets set that off the table for a little bit. Is there anywhere else in biotech thats promising behind glp1 . Yeah. Im kind of excited about alzheimers disease. We dont talk about it that much relative to, you know, the weight loss drugs. But you have biogen out there with an approved drug. You have eli lilly coming on line later this year. This is another massive category. I think its been kind of plagued by various fits and starts along the way, you know, in terms of Market Development and data. Now that were going to have two Major Players creating this market over the next few years, this is one that i would kind of look at and say were not really paying for it. We know there are an abundance of patients out there and well have drugs that treat this, albeit probably not perfect yet. But were kind of in the first inning of what could be an interesting alzheimers disease buildout. Its just not as interesting for investors right now versus the glps. Jerald holtz, great to get your thoughts. Come to see us again soon, sir. Speaking of health care, dont miss our interview with cigna ceo David Cordani tomorrow 1 30 p. M. Eastern time. So from the drugs in biotech to the insurance side of things, its all interconnected. Coming up, financials are sinking on reports that new york Bank Community is seeking a cash infusion. And jay powell addressed the proposed rules surrounding Capital Requirements in his testimony earlier today. Were going to dig into all of those topics coming up next. At pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. The future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future. A future where you grew a dream into a reality. Its waiting for you. Mere minutes away. The future is nothing but power and its all yours. The all new godaddy airo. Get your Business Online in minutes with the power of ai. Welcome back to the exchange. New York Community bancorp shares are still halted for trading, but they were downmore than 42 before the halt on reports it will seek outside capital to try and shore up its Balance Sheet. Joining me now to discuss me is chris marinac. And hugh song. Thank you both for joining me. Hugh, youve don some expensive reporting on this, the most recent of which has been about some of the deposit states that are at nycb right now. What is this newestdevelopment and how does it frame the discussion . I think it speaks to the questions that are out there, right . The last thing we knew from them is their deposit base was stable. There are now questions whether parts of those will leave given the ratings downgrade from friday. Today, we had a headline that said theyre out seeking capital. They need a capital injection. While thats not surprising, the absence of word from nycb to context yuli yulize what that m theres concern that regulators are forcing their hand saying youre in the midst oh of a view about your material weaknesses and whats that that brought up, and perhaps do you need to back fill that hole with capital, or is there some other cause for concern . I think until we get definitive word from nycb, theres going to be this reaction from the market, which is all news is bad news. Were almost a year removed now, roughly a year removed from the Regional Banking Crisis that we saw last year. During that time, when some of these lenders, who are, you know, embattled but not at the stage nycb is right now, talked about asset sales, focusing on core assets, what type of announcements do you foresee in the coming days, maybe weeks with how you can shore it up absent a straightup cash infusion from an outside equity source . That would be a huge boost of confidence. You could see the stock violently react to the upside if that happened. One thing leslie picker said, she heard there were private sources of capital out there. Just to give the viewer out there some context, there was a deal several months ago, Pac West Bank of california, another wounded entity from last years chaos, so pac west needed about 400 million of private capital to get that deal done. So there is the understanding there are private equity players out there, lots of dry powder, who are comfortable with this asset class, who are waiting to potentially inject money into and own banks. This would be the cohort of folks that this deal is being shopped to, dom. So chris, lets bring you into the discussion here. You have, and have been bullish on this name, nycb, for a while. This has been jarring for a lot of Regional Bank investors out there. Can you give us your thoughts give tp headlines . Thsure. The company mentioned this that all ideas were on the table back on february 7th. They said that they had 37 billion of liquidity on top of the 23 billion of uninsured deposits. So if all of the uninsured deposits land at the bank, they have plenty of coverage. Some of the deposit outflows occurred, which i think would take time, but say they happened today, they have excess liquidity to cover those, too. So its not a good situation to have that much deposit outflow if it occurred. I dont think its occurred at all. The Company Really is prepared to do what it takes to run the business in a better fashion. I think what it needs right now is time. Time to get the 10k out, time to explain what has or has not happened. And then foresee what the best alternatives. I look at capital as comfort capital. Not something they have to do. Under a stress test this year, they would have to have about 7. 5 , maybe less. So theres a good 200 basis so theres a good 200 basis points of potential [ ] your skin is everchanging, take care of it with gold bonds healing formulations of 7 moisturizers and 3 vitamins. For all your skins, gold bond. Businesses go further with 5g solutions. Thats why they oo tmobile for business. Pga of america and tmobile are partnering on 5gpowered analytics to help improve player performance. Tmobiles Network Helps aaa stay connected nationwide. To get their members back on the road. And Las Vegas Grand Prix chose tmobile to help fuel operations for one of the Worlds Largest racing events. Now is the time to see what americas largest 5g network can do for your business. Youre probably not easily persuaded to switch mobile providers w for your business. St but what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . You can get two unlimited lines for just 30 each month. All in the most reliable 5g mobile Network Nationwide wireless that works for you. Switch to comcast business mobile and save big with up to 500 off an eligible samsung device with a qualifying tradein. Dont wait call, click or visit an xfinity store. Welcome back, the week of retail earnings continue victor secret. Here with our trades, lee munson president and chief Investment Officer, thank you for being here, starting with burlington, lower on the year but up 81 from october low, bank of america launching the strength of offprice as burlington spends on new opening and higher clothing cost. What is the trade on burlington . I like this stock. I think longerterm the issue is this is the poster child or creative destruction. 500 stores over he next five years doing this by buying up the stores from bed bath beyond. Thats what the story is, increasing footprint 50 over the next few years. If they can do it, great, whats happening in the past is they are value oriented people, the clients and customers have been having inflation rise faster than wages. When that flips and wages start rising faster, we will be good to go. This is a great story longer term. Not sure if there is a short term trade. American eagle outfitters off of its fifth positive week in the last six, citigroup with increased demand overall, but especially as the retailer looks to expand gross profit margins, whats the take on American Eagle . My daughter loves it, the kids and teenagers love the brand, they are making the right moves but i dont like competition this is risky business. As they remodel 15 more stores, look at the last 10 years, the stock is not given too much value. Tomorrow they will have the Investor Conference and they will Start Talking about how they increase shareholder value. There is only one way to do this which is the buyback. I want to wait, listen tomorrow and see that show me the money because again this is retail, you have to make the right moves to survive. Finally on retail, victorias secret on pace for its Third Straight down week, wealth off october lows, wells fargo focusing on brand strength with outsized growth in its fragrance business as the company cuts cost with better Inventory Management taking hold. What is the trade on victorias secret . Walk away, like all the teenagers do as they walk through the mall. Just take your teenage daughter and bring her to the store and say is this a brand that is relevant for the next 10 to 15 years of your life . The new stores of the future, 70 plus, how do you have the makeup counter with insincere product line not saving this dead and dying retailer. It is competitive, but i would walk away. I dont care about a bounce or short squeeze more about some idea of private equity coming to buy a dying brand and turn it around. Take a walk. Okay there is the trades, harsh, if you will from lee munson. Thank you very much, we will talk with you later. That does it for the exchange, no green across the screen with the tao up 90 points, again we are waiting on what will happen with the fed book, power lunch picks up coverage next after this quickre, th bake dow is up 97 points. We will see you tomorrow. 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. Rylee from rylees realty hi this listing 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. 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We actually have reinvented ocean voyages, designing allinclusive experiences for the thinking person. Viking voted worlds best by both travel leisure and conde nast traveler. Learn more at viking. Com. Good afternoon everyone and welcome to power lunch. Glad you could join us. The fed tear powell tells the market to hold your horses, we are not ready to start cutting Interest Rates. We will dig into the details of the beige book which is out to now. Another bombshell report on the problems of ai, the microsoft copilot designer creating questions of violence or sexualization, we will hear more and see what microsoft is saying and doing. First, a check on the markets as stocks are rebounding falling yesterdays losses. We have averages in positive territories with the nasdaq leading the way, s p up by. 5 and the dow adding. 2 . We are watching shares of new York Community bank, the stock has halted after losing half of its value on reports where it is seeking a cash infusion. Much more on this, coming up, lets get to the big