Transcripts For CNBC The 20240703

Companys products spans various sectors. Thats what makes it so interesting. The ceo will join us exclusively ahead, but we begin with todays market and bob pisani at the new york stock exchange. Bob . Hello, jon. Good to see you. We have been chopping around in a fairly narrow range and the trend is up and certainly since the pc report and the s p 500 and the trends been up here were trying to get to the 200day moving average and were at 5114 now, slowly, but surely. A lot of strength in boeing, thats great news. Apple. Caterpillars been strong. Goldman sachs has been strong and thats at a 52week high and a number of big movers nasdaq, the bigcap tech is mixed and lets take a look at the midcap tech stock and meta and alphabet is down 2 and amazon will close tomorrow and it is up fractionally here global industrials have been having a great little run in the last couple of days and thats good to see. Boeing, lets get out of this month and one of the worst month ever and boeing was near a twoyear low just a couple of days ago and its been trending upward recently . I mentioned caterpillar was 330 at the open on thursday. Remember the gdp report and the inflation concerns 330 . It hit 3. 50 today and thats a big move for caterpillar in a short period and freeportmcmoran was at the open, and near 52 this is one of the biggest copper and gold producers in the world. Both of those had been doing really well as commodities recently and some of the big dow industrials are doing well we had rubric and this morning we had word that viking cruise lines which has the big ipo is supposed to happen this wednesday and they have upsized the term of the ipo here theyll be selling 53 million shares, 21 to 25 and thats 44 million shares and the bottom line well raise 1. 2 billion with a single ipo and you saw rubrik got as high as 40 and trading down a little bit today, but bottom line here, jon, is were doing really well on the ipo business we have over 4 billion in the last four weeks and a couple of billion dollars coming in the pipeline in the next up kcouple weeks. Well see if it stays steady. More inflation and more growth and thats the latest according to the cnbc fed survey and were getting ready for another Interest Rate decision this week steve iesman has the details hi, steve. Jon, good afternoon the cnbc is showing forecasters after those numbers last week that bob was just talking about. They ratcheted up the outlook for the Second Quarter, the one were in now and for 2024 inflation. Weve seen these repeated growth upgrades and the weak one keeps coming in better than expected and this is the most substantial inflation boost to the album that weve had in more than a year and here are the numbers after a weaker than expected gdp report and it boosted the Second Quarter real growth real gdp to 2. 1 and thats inflation adjusted from 1. 4 and a decent upgrade. Transferring that, most of it into q2 and inflation is seeing the year up 1. 3 up from 2. 7 in the prior survey and that number in the forecast for core pce for the year with cpi running at 2. 6, still above the target range for the year and that assumes, by the way, a rough formula that cpi runs about half a point hotter than the pce usually does about half of the respondents say the recent run of higher inflation is just a blip half say its part of a longer term stall in inflation progress that will keep inflation stuck around three the fed doesnt act. Barry knapp thinks the federal government should act, too inflation is likely to run above tag until and unless there is a fiscal policy tightening unemployment forecast is seen rising steadily from currently 3. 8, to 4. 3 by next year wed be getting off cheap if we end there. 50 of respondents say the fed cannot hit the target of 2 without growth running below potential and the Unemployment Rate rising by half a point. How much the economy has to weaken, jon, for the fed to hit that target . Thats one of the pressing questions for the central bank right now. Steve, im a simple man i think in metaphor, right im not the senior economics reporter i think a high rate environment like this as being like the economys car is coasting, right . And if we were to give the car more gas eventually it slows down and its not slowing down that much yet, right so i mean, does Something Else need to happen with this car or is the coasting the slowing down from coasting going to be enough higher for longer to get us to where the fed says we need to go yeah. Let me confuse you, jon. I know youre a simple man and we all want to be like that, but heres the problem were not really sure what our ground speed is here its not like youre lifting off a rocket and you know exactly how much fuel you need to get and escape gravity here. Were not sure, relative to the speed of the car how fast were running. So therefore, we dont know how much brake to apply. I dont know if that makes sense, but heres the deal we seem to be running faster than we thought wed be running given the amount of breaks that have been applied to this point. For example, weve ratcheted up the funds rate to 5. 3, 5. 8 , but the economy is not slowing down as much as thought the Unemployment Rate is not rising that suggests that relative to the speed of the car or the speed that we intended were going a bit faster so more breaks would have to be applied or the same amount of breaking for a longer period of time i wish this were science as i like to say Monetary Policy is not rocket science, its harder we dont have full selfdriving coming on the economy any time soon. I dont think elon musk is working. Steve liesman, thank you. Ai for the fed. There you go. Well, our next guest says dont fear higher rates, you know . Embrace them that means the return to a more prosperous time. The bigger worry should be the macro conditions that would force the fed to cut joining me now for more is Chris Grisanti senior Portfolio Manager at Mai Capital Management chris, welcome so things are pretty good and thats why the feds doing what its doing or not doing what its not doing and you say thats fine. Why . I think its more than fine, jon. I think its necessary you dont want lower rates because lower rates dont happen by themselves. The fed isnt a santa claus is going to give lower rate as a gift theyll lower rates when things start to slow down i would much rather live with higher rates and a stronger economy. Look, every economy, every market has problems of one kind or another otherwise i would be out of a job as a strategist, but this problem which is inflations running a little hot and rates are a little high and thats an equity problem for the markets to have. Remember, earnings are reported for nominal dollars and the inflation will feed into the earnings and earnings should be okay this year jobs seem just fine right now. Who knows what will happen in the future and i get it that higher rates take time to slow the economy. They dont happen overnight, but look, its been almost 8 hun nights since the fed started to raise rates and the economys chugging along i think we should hang on tight and enjoy the ride and fear a rate cut chris, for an Equity Investor in this environment, so many stocks are so richly valued its hard to know what to buy so how do you decide right so valuation is a problem, jon i wouldnt go out and buy indiscriminately, but us value investors, we complain about the mag 7 and its gone up so much and unjustified and blah, blah, blah, and the flip side of the mag 7 is all of that capital flowing into the stocks and its had to come from somewhere, and i think theres a bunch of sectors and specific stocks that have been left behind. I particularly like the Health Care Sector right now. I think the slow are growth there compared to Technology Makes it unattractive, but those pe ratios have fallen so low that you can make a decent return even if the market gets more difficult in the six to 12 month ahead. So id look there and theres a couple of other stocks we can talk about, as well. Yeah. Lets talk about one of the others as well and thats meta i understand that just on valuation it looks cheap, but Mark Zuckerberg keeps spending all of this money first on the metaverse and now hes spending it on infrastructure and things like nvidia and hyperscaler chips. Is it really a value play if theyre spending that much on this growth future and we dont know how long it will take to pan out . Right look, its uncomfortable for me as a value guy to recommend a mag 7 stock, but lets look at the stats. So meta is the only mag 7 stock selling at less than a market multiple based on next years earnings and yeah. Its not a top line problem. Its a spending problem. This reminds me very much of amazon two or three years ago where the top line was doing just fine and they were opening warehouses and doing all of this stuff and the bottom line got cut. Thats not the case here meta is still going to grow the bottom line, simply not by as much and the top line is healthy and this is not a slowing economy and this is not a slowing economy. This is a Healthy Company thats investing for the future and we can get it at 17 times next years earnings so love it zuckerberg also has a history of saying hes going to spend a whole lot of money and then just spending a lot of money and not a whole lot and the stock gets the benefit. Its all expectations. Yes there have been some pockets of exuberance within health care because last year the glp won excitement and caused the air to come out of certain stocks oh, everybodys going to be skinny and pretty and wont need those things anymore turns out not so much. Where are the pockets of the largest opportunity relative to the risk, do you think i think theres a couple of largecap pharmas that are selling at singledigit pe ratios i also think United Health group is interesting because the medicare pricing went against them and all of the other companies and they fell precipitously, and they have a history over 20 or 30 years of managing around that kind of negativity they can do other things with such a Big Health Care company that adjusts for that loss of revenue from the medicare side so those are the kind of things that i take advantage of also in health care, again, the capital has been sucked toward the weight loss drugs to the disadvantage of other things that might now look quite attractive. How are you treating sectors like industrials and materials with an overall global macro slowdown were seeing demand problems there that have been hitting new stocks this earnings season. I wonder if thats creating opportunities or if theres a broader reason to stay away from the stocks in your mind. Well, you may never invite me back, jon, but ive been on the show before saying i really like lithium. The shares have dropped by 70 and thats because u. S. Investors see the problems evs are having in the United States that are currently in a demand low, but europe and china are both selling evs like hot cakes. Its a global commodity. Lithium was overproduced and folks stockpiled it because they couldnt get enough and now were in a one to two year recycling and i think thats an opportunity. Again, i wouldnt bmaterials willynilly. You mentioned hot cakes, lets talk chocolate hersheys, how does that affect a player like that and the opportunities you see. I think its creating a great opportunity, and everything thats bad is actually good. So at hersheys, the stocks down 30 because its biggest cost of goods sold is cocoa. So cocoa prices as youve reported have quadrupled in the last two years and theyve doubled in the last two months so thats terrible for hersheys. The stock is naturally down. Also the multiple is down because nobody wants to own a company that will have this big headwind, but if you think a year or two ahead, cocoa prices dropped. Hersheys earnings explode because the margins get bigger and the multiple that increases. Youve got this leverage that can make hersheys a stock that can go up 50 or 60 over two or three years. Thats the kind of stock that can still work in a bad market that us value guys really like maybe like the mini pandemic effect chris, good to have you. Good to see you. If its up to me well have you back. Thats great. Ageold debate of renting versus owning is starting to change in a big way thanks to soaring Mortgage Rates our diana olick has that story diana . Jon, the rent versus own math used to play out different city to city. Home ownership has become so expensive that rennting a home s cheaper than buying one in all metropolitan markets and thats from bankrate which compared monthly mortgage payments to current rents. The monthly mortgage payment for a medianpriced home for 112,000 was 2,703 as of february of this year and that includes property taxes and insurance. So compare that to the National Monthly rent of 1,979 which includes renters insurance. Thats a 37 gap between the two, but in 21 markets that gap is actually 50 or more. Those markets include san francisco, seattle, salt lake city, austin, denver and dallas. Cities with the smallest gaps, although still more expensive to own, include detroit, pittsburgh, philadelphia, cleveland, st. Louis and tampa these numbers are as of february when rates were slightly lower than they are today. Rents are easing despite rising demand because theres so much new rental supply coming on the market, multifamily starts have dropped sharply. Once that supply does get eaten up, rents could start to rise again and jon, one more note, even though its more expensive to own you are building equity when you do own a home because ho house prices go up for houses. What is this doing to the multifamily investor market because i guess on one side tenants are more likely to stick around if theyre not moving up and its hard to buy something new unless youre paying cash because capital is at a premium. Yeah, i mean, look, the oversupply in the rental market with the big reits and were talking about class a multifamily apartments are still doing quite well, but theyre strong lower prices a little bit or give concessions on that first month of rent. So the multifamily market is still very strong again because we have this large demand from renters, but again, once that rental supply does get eaten up, you are going to see those rents start to pop back up again so i dont think investors in multifamily have anything to worry about. Diana olick, thank you. Coming up, shares of tesla sharply higher today after the company cleared a key and longawaited hurdle. Shares up there 15 and how important it is for the company and the stock here three more names on deck to report including this one. Its already up 85 in one year, but thats not stopping our trader from buying it. He says let your winners run hell join us ahead in Earnings Exchange were back in two. This is the exchange on cnbc your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire what took you so long . Im sorry, there was a long line at the thai place. You get the sauce i like . Of course youre the man i wish. The future isnt scary. Not investing in it is. Nasdaq100 innovators. One etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com and theyre all coming . Investment objectives, rithose who are stillses with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Welcome back to the exchange. The company passed a major milestone in china chinese regulators are removing restrictions on the ev makers advanced Driver Assistance Technology after passing the countrys Data Security requirements as part of that deal, chinas baidu will prevent mapping for tesla. Those shares also higher on the news and we should note this news coming on the heels of elon musks surprise trip to china where he met with the chinese premier in beiging on sunday for more on how significant this is to tesla and the stock going forward, i am joined by the lead Equity Analyst at rbc autos at rbc capital. I get conceptually why this is a big deal the part i dont get yet, maybe you can help me is how relevant is the existing u. S. Data in training for chinese for selfdriving or regionally is this completely straight training because i imagine, you get training in des moines is not going to go ahead in new york city and we drive different places in this world yes and no. So what weve learned from fsd in the u. S. Is the highway driving is as good as its going to get its amazing the difficult part is the urban environments and what we noticed from urban environments in china is that they actually are pretty similar to urban environments in the United States, and the other thing i would note is remember the chinese, the Central Government authority that wants this to happen, that wants to have level 2 and potentially more robe o taxi, et cetera. There is more chance that well get to faster autonomy than in the u. S. In rural areas and highways are maybe somewhat different that part is not the difficult part its really the urban environments and the dense urban environments in china are not as different as what we have in the u. S. Looking out for investors, is there a kind of tiktok risk here for tesla . Tesla ares driving around with cameras on them, sensors and looking at whos going where and how people drive and the argument could be made from the chinese governments side and thats why it took this long to get this kind of approval, but boy, that spy material if its all getting sent to the u. S. Could this end up being a bargaining chip being turned on and off in the period of u. S. China tensions or is there enough benefit, social societal benefit that china is getting, and theyre not going to want to do that. Yeah. This has been going on for a long time where they didnt allow the data to go back to the u. S. For the all g al go rhythmc learning its tieffive times safer, not five times safer theyre looking for the greatest good to society and its saving lives. Its definitely huge utility that it does, so i think its really them looking at whats the best thing for society and its saving lives. Limiting accidents thats really whats the driving force here does this end up helping tesla longer term with what might be seen as a margin problem. There have been these price cuts as chinese ev competitors are going up against tesla do you think tesla will license this technology to others in china and therefore make margin whether theyre selling hardware or not or whether theyll keep this internal apple style and use it to try to justify selling their cars either at higher prices or getting a government subsidy if they can prove through data that it is safer . Yeah. And i just want to point out, ive had fsd and robo taxi together worth 70 to 80 of my price target for a long time, now almost a year. Not only, it is the margin the Software Business subscription and my model has it at 50 a month and hes lowered it theyve lowered it from 200 to 100 and just imagine when we put the Gross Margins on the Software Product and the multiple you can get part of it is a valuation we get from rerating the stock as a tech company, Software Company and the other aspect exactly what you point out is the margin story and weve seen whats happened with auto margins coming down and theyll probably come down some more with a new affordable car, but it doesnt matter if you can slap on an amazing subscription on it that gets you higher margin if we can see margins overall slowly creep up because of the take rate and weve seen it already in version 12 with the free trial with the success and then that translates into greater margins overall. Youll definitely see the narrative for tesla from being a car company to something obviously, much, much more maybe you can answer for me what nobody else has been able to at least to my satisfaction which is why robo taxi would be so good for the company if it means that i can call a tesla and have it drive me around and i dont have to buy one. It seems like for a significant period of time thats bad for margins because it has to be teslas fleet that or people that are willing to lend their car around for others to ride around in which has all kinds of issues. The economics of robo taxis is massive ill just give you some numbers. You pay right now when you order an uber about 1. 90 per mile the cost of a private car to own is about 53 cents per mile to own and operate a robo taxi is about 33 cents per mile look at the economics of a product someone willing to pay 1. 90 that cost you only 33 the margins are huge and the amount of miles on the road will be increased and you charge on a permile basis instead of selling a car. Theres a piece of hardware thats super capital intensive which, to be honest, the industries are some of the worst merchants of any company in the world and its high Single Digits and maybe double digits if youre lucky. In the industry, here, youre dealing with a business with data that you can get way bigger margins and its a permile basis which you can charge a fee. It is far beyond the 3 billion box with wheels industry it takes from small cities to each other and it also was a bedroom with wheels. Its a living room with wheels and it has ability to trend from society and this urban housing, we see a group of cities looking for parking and parking garages. You can resolve a lot of that. This is a huge, societal transformational event and a money grab and its where legislatures and politicians want to go in this direction and that is where were headed maybe theyll figure it out in china first tom oryan, global autos analyst. Thank you. Still ahead, this company has a unique tie to the weight loss trade shares are up 2 today and the ceo will give us the skinny on the companys success next also, paramount shares are popping ahead of q1 earnings and todays results might be the least of the companys concerns right w. No details coming up on the exchange. Heart o local life and cultural treasures. Because when you experience europe on a viking longship, youll spend less time getting there and more time being there. Viking. Exploring the world in comfort. business can happen virtually anywhere. but theres nothing like being there. At national, you can skip the counter. And choose any car in the aisle. Even manage your rental right from the app. So you can give some quality time to a quality cause. Swing by to see one more customer. [audience cheering] and really get down to business. Go national. Go like a pro. ella fashion moves fast. Setting trends is our business. We need to scale with customer demand. In real time. jen so we partner with verizon. Their solution for us . A private 5g network. ella we now get more control of production, efficiencies, and greater agility. marquis with a custom private 5g network. Our customers get what they want, when they want it. jen now were even smarter and ready for whats next. vo achieve enterprise intelligence. Its your vision, its your verizon. Welcome back to the exchange. The market in the green, the dow low is still up 143. You can see the nasdaq there outperforming the other average and not showing you the russell and thats up more, up nearly a percent. Here are some of the movers this hour first up, dominos pizza,fast food chain hitting a new 52week high after reporting a 6 boost in samestore sales. The Loyalty Program has grown significantly since the launch shares up along with that nearly 6 today, and next, amc. Shares are off almost 11 as the Movie Theater chain says its still suffering from last years hollywood strikeses. Ceo adam aron says the brand is likely to feel the effects through q2 and the street has a handful of hold ratings on the stock and amc set to report next week finally, shopify shares are up almost a percent so far today after citi upgraded the stock to neutral to buy. The firm cited confidence in the nearterm thanks to a strong ecommerce backdrop and an accelerated market share from shopify and also pointed out Merchant Solutions as a longterm Growth Opportunity and now lets get to tyler math son for a cnbc news update thank you very much lawyers for hunter biden is planning to sue fox. The letter notified the network over alleged conspiracy and subsequent actions to defame hunter biden its the second letter sent from lawyer mark geragos which fox hired for the litigation fox news has made no comment after it boosted investment in fast shipment in a bid to remain competitive in Online Shopping it said about 60 of prime orders in 60 major u. S. Cities arrived within that timeframe. The announcement comes a day before amazon is set to report its First Quarter earnings pittsburghs probaseball and hockey teams are launching a streaming service for local games. Sportsnet pittsburgh launched snp 360 which will cost local fans 17. 99 a month to watch the pirates and the penguins play. Its the latest Regional Sports network to shift to streaming as more customers cut the cable package cord jon, back to you wow tyler, thanks. Mark geragos still kicking around. Yep two big restaurant names to report before the bell, but only ones in the green so far this year our trader will tell us which one hes buying and a quick programming note, the 2024 Berkshire Hathaway annual Shareholders Meeting is this saturday cnbcs exclusive coverage starts at 9 30 a. M. Eastern dont miss it. Well be rightac bk. grandpa im the richest guy in the world. man 1 i have time to give. man 2 i have people i can count on. grandma and a million stories to share. vo the key to being rich is knowing what counts. Welcome back to the exchange. You can see your session highs on the dow shares of aptar group up 2 . One of the biggest firstquarter tailwinds was increased demand from obesity drugmakers and management expects continued strong pharma performance throughout the year. Aptar also makes spray and pump bottles and the exchange has been tracking that since the pandemic we first spoke with them for our out of stock segment when Hand Sanitizer was a redhot commodity. Back with more and an exclusive interview is aptar ceo stefan pandhar. Give me a sense now of the market particularly just on the consumer side first . I mean, we used to have this supply chain bottleneck. Thats no longer happening beauty has been a pretty strong segment overall. How much does pump and dispensing innovation factor into that . Hi, jon thanks for having me back. Things are kind of normalizing now. All of this inventory adjustment and the stock is behind us we see normal growth we, of course, had a boost of new launches after travel remained with our fragrance and thats normalizing and demand is picking up at a more normal pace and all of the supply chain issues i think are in the Rearview Mirror give me a quick primer on the technology because i didnt generally think of these pumps as being high tech, but then again i think to the time when i was a kid and we were worried about the ozone layer and we had to phase it out because it was bad for the environment so there was definitely tech in there what are we moving toward and where is the rnd effort that will show you benefit down the line these are really hightech products with the assemblies put together at high speeds, 600, a thousand parts per minute and indeed, more and more sustainable and material fashion so they cant be thrown away in the recycling bin and easily recycled our customer is driven by the consumer who demand innovation and as you know, we were the ones that enabled it sat down sour cream and most recently dish soap and the same in the pharma space, making notes to making Drug Delivery possible and pain reduction or antidepressants and unfortunately, also narcan okay. In those areas are you sort of competing against people going to taking pills, taking these drugs orally are there innovations that you can make to make either this less painful, less cumbersome thats going to lead to share gains over time . Absolute plea the thing about it is do you want to inject yourself like with an epipen or do you want to just have a nasal spray take care of that so its a much more consumer spendly way of administering drugs and many of our customers, Pharma Companies find this as a very good way to give drugs a new life cycle and things that used to be injected can be administered through the nose or become more effective and much quicker to the brain where they need to do the work. Does the Macro Economy affect demand for you or is it mostly based on who needs whatever product . I wonder how stable demand is even despite these macro cycles . Something investors might want to think about. Yeah, when you think about a normal recession if theres such a thing, it really doesnt scare us people have breakfast, lunch and dinner they put on their game face and take their drugs in good times and bad times. Clearly covid wasnt the normal recession and covid hurt us and with covid beheine us we are back to executing very well and now seven quarters is helping us. What about International Expansion . What are the best market possibilities for you right now . We are actually a very Global Company and weve been around 30 years and 70 of the business is outside of the u. S. Based in europe and the board was just in china for a week and so we have a Global Company and geographic growth is an important driver for us especially in pharma and also in beauty and the food markets. From injectable drugs to upside down sour cream, i love the breadth there. Stephan tanda, thank you thank you. Coming up, paramount set to release after the bell shares is up 5 ahead of the print and well dig into the boardroom battle next. Speaking of battle, lets get a little show and tell in here activist firm ancora getting oort another vote of confidence theyre urging Share Holders to vote for six of the nominees at next weeks investor meeting and Norfolk Southern shares slightly higher and down 4 since the proxy fight started back in february our own Morgan Brennan sat down with allen shaw earlier today who warned against ancoras strategy the ancora coo said he would tear Norfolk Southern down to the studs. Thats not safe. Thats not responsible were doing it in a manner that brings along our customers and our shareholders and our employees and our regulators that preserves the opportunity for long term growth thats the winning strategy. A shortterm approach is a losing strategy for our shareholders ours is the winning strategy. Well have much more from morgans interview later today on overtime. Thats one of my favorite shows. At 4 00 p. M. Eastern time. The exchange will be right back at corient, Wealth Management begins and ends with you. We believe the more personal the solution, the more powerful the result. We never lose focus on the life you want to build. Its time for Wealth Solutions as sophisticated as you are. Its time for corient. Welcome back to the exchange. Paramount reports after the bell and the First Quarter numbers are taking a backseat with the drama unfoallding as it looks f a buyer. Julia . Paramount global ceo bob backish is expected to be ousted today. Thats according to sources close to the situation who say that the companys board could announce a new Leadership Committee to replace it. All of this comes after yesterdays david elsons skydance made its best and final offer for paramount, also according to sources in that deal ellison would be ceo and former nbcu chief and jeff would be president of this new combined company and thats according to sources close to the situation who tell us that the final offer that they made yesterday does include paying a premium for some percentage of Class B Shares which would mean a better deal for nonvoting shareholders investors seem reassured by that news with shares up about 3. 5 today, but last week investor Matrix Asset Advisors sent a letter to paramount global saying it is bad for shareholders with bernstein agreeing with that sentiment shares are still down about 25 since the news broke back in december 10th and Sherry Redstone was looking to sell her controlling stake in the company. Now sources tell me sony and apollo are considering submitting their alternative proposal to skydances bid as earlier as this week theres another wild card here, as well and paramounts negotiations with charter over their deal that expires tomorrow night. The terms of that deal and whether charter takes all of the channels and with what fees will impact paramounts value going forward. Jon . Julia, this is a company and an industry under a lot of pressure unless your name is netflix. Regardless of what happens here, but does it look like people are feeling that this deal with ellison is probably the bird in the hand you know, thats what i was hearing up through yesterday, that this deal was sort of set to happen, that this is what Sherry Redstone wants to happen and the fact that were now getting more of these details leaked and the new terms of this deal and the best and final offer does make it a better deal for shareholders to me makes it much more likely to happen because that might minimize the potential for lawsuits, et cetera, but its still a wild card right now the deal may or may not happen and the charter deal does need to get done. We saw the conflict between charter and disney and what a sort of different complicated distribution that deal was and incorporated streaming rights, and so i think there are a lot of unknowns here, jon and i suspect theres more at 4 00 p. M. Eastern cant wait for a sirius whether its a movie or one of the streamers. Thanks, julia. Coming up, mickey ds and mounja a mondrondcdals and eli lilly, thats in Earnings Exchange next s and mounjaro and mcdonalds and eli lilly, thats in Earnings Exchange next to start a business, you need an idea. Its a pillow with a speaker in it thats right craig. A team thats highly competent. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow youre probably not easily persuaded to switch mobile providers for your business. 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 a month. All on the most reliable 5g mobile network nationwide. Wireless that works for you. For a limited time, ask how to save up to 830 off an eligible 5g phone when you switch to comcast business mobile. Dont wait call, click or visit an xfinity store today. Welcome back took the exchange. Were looking at the help of consumer and maybe their appetite we have got mcdonalds, Brinker International and eli lilly. Here to discuss these trades is harry wald, head of technical analysis. Let us start off with mcdonalds pictures up 8 from the october low but down 7 in 2024. Wells fargo watching demand as traffic picks up from a january wall. International also looking to rebound with weakness report in china, the middle east and france. What do you do with mcdonalds here . I think you sell the charter mcdonalds the chart pattern looks like the golden arches symbol of mcdonalds. It looks like a topic i like to interpret these charge with what the market is doing. S p 500 broke out to alltime highs but mcdonalds was not able to do that but it got stuck below peak levels with last summer. That is an indication of weakness. When the market receives in recent months, but we get weaker. Mcdonald has slid back below the average with the indication of our poor trend. Generally we are over all more skeptical of more lowball stocks. Why is this not doing what walmart is doing . You would think that would be good for mcdonalds . Walmart does not fit the general offense over defense call we have been talking about in a bull market. Consumer staples, probably relatively weak. Within staples some of the retail names, costco and walmart have been able to hold up what is driving that . Let us stick with food put up next is brinker britishers up 10 in 2024 by 30 below 2021 levels. Wedbush warning that trade down could hurt margins even after prodding price increases as higher wages and cost also cut into profits four, better than mcdonalds . It is better. This speaks to them mixed action with wanting to dune down capitalizations and finding a pocket in the industry. That is working, brinker, chilies and maggianos coming out of a bottoming process but did breakout with cycle highs bring about prior breakout level is now support, low 40s, 43 down to 41. Our assumption is after the run up with consolidating sideways. As Market Conditions improve in the second half of the year, as we expect, that breakout does resume for brinker. If we have a problem eating too much, finally eli lilly. Up 25 in 2024 coming off of the alltime hybrid weightloss drug demand is a key focus as prices for older drugs decline and investors wait for announcements from the development pipeline. You like eli lily here because we were eating chili and maggianos . It is an established leader. It is a great example of letting your winners run and with the uptrend it has been our buy list of september 2022. As far as putting new money to work, you want to buy some weakness for let us see if it settles a little bit. Im watching 675. There was a price action gap from february put those gaps get billed and they have support for it would keep the stock above its 200 average and maintain the uptrend then we look took a move back above the 50 day of the longterm updraft. It is kind of like nvidia. In a mixed largecap group, those are the leaders. I think you stick with the leaders. Ari wald, thank you printer ari wald from oppenheimer. It is an upmarket day but if you look at the indic seas, they have been holding in there. Doubt, s p and nasdaq all up a little less than a half a percent. The russell is the strongest of the group up almost 8 the 10 year note, the 10 year yield has been suffering a little bit. We will have to see how we close out the day. Still have a couple of hours of trade left. Particularly in this type of environment, how have these health and maims continue to respond . That has been an area of strength sector wise, we have been watching. It is the healthcare sector versus other strategists on the street. It is a mixed bag. Some of the pockets are working better than others. Some Large Companies are working well. As we think about this bull market cycle, which is still intact. That is the point we want to stress. The action we have seen is consistent with the bull Market Correction rather than an end of cycle bear we want to buy pullback spring less so, healthcare, more snow industrials. Financials and technology. I think you want to stick with as well. At this point in the cycle, the leadership is established for the second year you want to stick with that. That is the driver gains looking ahead ari wald, thanks again. I keep thanking you. Now we are done that will do it for the exchange. I will be back for overtime first power lunch is back after bisquick break. Amelia, unlock the door. Im afraid i cant do that, jen. suspenseful music why not . Did you forget something . suspenseful music my protein shake. The future isnt scary. Not investing in it is. Youre so dramatic amelia. Bye jen. Nasdaq100 innovators. One etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Your record label is taking off. But so is your sound engineer. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire when it comes to investing, we live in uncertain times. Some assets can evaporate at the click of a button. Others can deflate with a single policy change. Savvy investors know that gold has stood the test of time as a reliable real asset. So how do you invest in gold . Sandstorm gold royalties is a publicly traded Company Offering a diversified portfolio of mining royalties in one simple investment. Learn more about a brighter way to invest in gold at sandstormgold. Com. My name is douglas. Im a writer director and im still working. In the kind of work that i do, you are surrounded by people who are all younger than you. I had to get help somewhere along the line to stay competitive. I discovered prevagen. I started taking it and after a period of time, my memory improved. It was a gamechanger for me. Prevagen. At stores everywhere without a prescription. Shortcut welcome to power lunch. Everybody stocks slightly hard today per building on the right nasdaq, s p, could make it five winning sessions out of last expert despite an Early Morning drop on thursday, all the averages are just a few Percentage Points from record highs apple contributing to the gains for the average sh