Farr of farr, miller, and washington. He is with us for the full hour. Michael, welcome. Thank you. No chat with michael here, we have to wait, they say. Well do our best to try. We want to start with ai because its been a busy, busy newsweek. Much more to come next week. Google and apple up about 4 since monday. And reddit soaring today on news that openai will use reddit content to trade chatgpt. Could be a great revenue stream, tyler, for a lot of these companies. Lets start with microsoft because its next on deck for the big ai event next week. Our steve coback with more on what we might see and hear from microsoft. We got two ai reveals down so far with two more to go. This week we got the latest from openai and google. Starting monday its microsofts turn with its build developers conference. Expecting a slew of ai announcements including new ai computers with qualcomms first ever pc chip. Plus, plenty on the Software Side like ai features in windows 11. And of course then theres copilot, microsofts more key ai assistant. Microsoft has been making a huge push to sell it to businesses this year, but its not cheap. Its 30 per user per month. For now, investors, though, they have little clarity into how well copilot is selling despite all that hype from microsoft. I spent some time over the last few days catching up with ctos and other executives who decided to buy tallacopilot and see hos received, and answers have been mixed. No one is ready to deploy is t widely. Theyre testing it with a couple hundred employees at a time. They say its too expensive while they cant quantity fee the benefit. Almost everyone said they love how copilot works with video meetings in the teams app and keeps the transcript handy. Can summarize everything that happened. Useful for catching occupy piles of missed emails. Microsoft has given some data on copilot performance. Recently announced cocacola is testing copilot internally, and the i. T. Company cognizant recently bought 25,000 copilot seats for its employees. You can do the math to see how much microsoft is making. As for next week, expecting improvements to copilot to address some of those issues customers have been having. Guys . Lets thank you, steve. Stick around as we bring in michael farr here talking most especially about microsoft. Why dont i get you to sort of react to microsoft and what you think of that companys performance and prospects, but also the idea of how critical it is for individual investors to understand ai in todays environment. One i like microsoft and ive owned microsoft for years. I think you know, theres also a buzz about this microsoft build conference thats coming up i think next week. All the other sort of Big Tech Companies have been having their rollouts. Were looking to hear more from them then. I think there are more ways to win in the ai space with microsoft than virtually any other company out there. Azure and their cloud business, their generative ai, its and theyre moving to subscriptions there, i think just looks strong all the way around. Its really hard i think, tyler, to understand what the effects of ai are going to be. If you if you explain what chatgpt could do, and ladies and gentlemen, if you havent signed on to chatgpt and asked it a question or to write an essay or a letter or anything, its going to blow your mind if you havent done it. Perplexity is the same way. Another its another version. Perplexity, yes. So this is a technology that adds to that equation of productivity. If gdp growth is the addition of your workers plus the productivity, productivity can explode, weve been in a productivity recession for years. It changed last year, started to tick up, and it wasnt ai. But ai i think can move the needle big time. One of the most exciting things going. So it can be a it can change growth by a factor, and i think that thats what you see in microsoft. In the portfolios that you oversee, do you have a corner dedicated to ai stocks or ai players, or do you is your way to play to say, okay, no, im going to go with the microsofts,with the googles, with the with the ones that are in the space but are not pure or plays . We look at kind of all of it throughout our portfolio. For instance, ive mentioned valmont here before, and the stock has done well lately. Its an infrastructure play, but they build the stuff for data centers. And data centers are increasing. So i can look at a company thats got agriculture and infrastructure and go, but wait, these people are supplying data centers, and the demands going through the roof. Lots of companies, acentury has a whole lot of accenture has aett who whole lots of data, miles of data deep that can be used for clearer reporting through ai. So its not just the microsoft, not just the apples, not just amazon. Theres an aspect of this and pretty much in pretty much everybodys portfolio. I think its interesting that youre saying that perhaps that initial burst of productivity from using copilot is not, you know, immediately tangible with a lot of companies. How much do you think that might slow investor excitement for microsoft if at all at this point . People who are looking at copilot or experimenting with it want to see what the return on investment is. They put they meaning microsoft put out this report last week thats called their annual work trends index. That was one of the numberone topics that microsoft is talking about, helping people understand that what the productivity benefits are. I talked to one cto who basically told me its too subjective right now to really understand if its worth paying that hefty price. Again, 30 per user per month, multiplied by a couple, ten thousands employees, its going to prove itself. Its a significant bump up from what many customers already paying for their standard tools like email and teams chat. So that is one thing or likely going to be a theme going into the build conference on tuesday is whats new with copilot. Is there any elasticity in that pricing to get people to sign on now. Right now we really, theres so much minimal disclosure for investors on how this is their main product. Keep that in mind. They just hired a new ceo of microsoft ai to run that division for user facing and Consumer Products specifically copilot. A lot of effort behind it, but not a lot of proof there yet that it is all its hyped up to be. What you said about the teams ability to do transcripts is great, but you dont know if you need 30,000 licenses for that or maybe a few less than that. Steve, thank you so much. We appreciate it. Steve kovach. Lets stick about ai and talk about executive moves and big hires across the generative ai startups this week including at the two biggest darlings in the space, openai and january droppic. We have more in on what this means well see next out of these startups. Ive been following your conversation, microsoft has grown up, but these gen ai startups are starting to grow up now. Also going a little more corporate. Number of the most well funded highly regarded startups, theyre moving from an allout focus on building that Core Technology to turning that technology into products and with a sense of urgency, i should add. Theres anthropics new head of product focused to getting tech into users hand and finding business uses. Theres french open source darling mistral hiring a new gm for north america who has held chief revenue officer roles at a number of other tech companies. And answer engine, tyler mentioned this, perplexity it added three advisers who held senior roles or helped build at uber, android, and bing. For all the hires there was that departure, as well. We talked about it. Openais founder known for pushing the ethical and Safe Development of gen ai. Well see what he does next. That is one less voice in the monetization and commercialization drive. We round all this up and more. Check out our weekly deep dive publishing today at cnbc. Com tcweekly. To your guest, i would say if chatgpt blows your mind, check out this piece because its all about the ai agents that can do even more in real time. Its really amazing what weve seen this week. I cant wait. Are they already doing it . I know a lot of announcements are these technologies yet to come or live . Good question. The demo is a key distinction. There was even some fits and starts with it, but you know, what the ceo of google told me earlier is they want this technology and aim to have it into consumers hands within the next year. Its moving very, very quickly. And the key difference is that it can emote, it can rationalize, it can remember. So a leap forward than what weve seen with chatgpt. Whats interesting, michael and deirdre, i think back decades ago, i grew up in the publishing business, so did you in the publishing business. And there was at that time maybe a conceit that the legacy publishers were going to own the world of online information and online journalism. And in truth that has not been the case. It has been other companies that have come in and been the winners here. So i wonder in this new breakthrough world of Artificial Intelligence whether its a little too convenient to say that the winners are going to be those legacy tech companies, the metas, the microsofts, the googles, the oracles, and whoever else, amazon, apple, whoever else or is it going to be these smaller startups like antropic. There are obviously lots of different facets here. There are the data builders and so on. The people that really do generative work, i wonder what you think about that. I think your answers going to be both because as we look through kind of every evolution of every industry, the answer has been both. We can look back to the Insurance Industry or the big Blue Chip Companies and say every portfolio 25 or 30 years ago had to own aig and had to own General Electric and had to own and you were supposed to sell corning until they figured out that they could take that bakeware stuff and turn it into fiber optic cable. Really . Right . And the glass on the screens. The glass on the screens. So you really need to say some of these Smaller Companies are going to have it right, and some of the Bigger Companies wont. Content has proven king in publishing and will with this. I was going to say, the reddit deal, i would love to know the terms, perhaps out there. To your point, if youre a reddit, a wall street journal, if you are a a sort of repository of information and language that the Large Language Models can train on without violating the law and being accused of stealing down the road ask theyre going to pay for that privilege, could those companies become the winners . Youve covered this a long time. I think back to the days when who dominated the Digital Space . A Company Called aol did, okay. Everybody thought it was going to be aols world. They it came along later pardon . Pardon . Google only came along later. There was google, aol was going to own it yahoo was going to own it. And where are they now . Even those guys theyre all but dead in the water. And when they came along, i was i was guest hosting on cnn fn and we interviewed these two kids youre dating yourself. I know. The two new kids from this Company Called google. We were in the middle of the dot comcr craze. I looked at rhonda shafler, theyre calling this company what . Google . I thought it was like yahoo . A company that go ahead its a really good point. Its not like google came in and reinvented the wheel. They just had a better user interface basically and began to dominate the market for search for the next two decades. So in this moment theres a similar, very fierce debate going on. I think the difference is that the mega caps that we know now are so well capitalized. Theyre the Biggest Companies in the world. And theyre moving quickly. We talk about the regulatory red tape. Google was able to acquire deep mind years ago. And that was really essential for them leading the technology. There are startups, though, like perplexity and anthropic and others that are making google and microsoft move a lot faster, and certainly an open question. I probably agree with michael, its going to be both. Thank you so much. All this ai buildout is going to require chips, and thats going to require money. The u. S. Government has already handed out 33 billion of money from the chips act. Another 6 billion remains, and we have more on that. Megan . Hundreds of companies are still vying for a piece of that pie thats remaining from the chips act. Most of the 33 billion thats been allocated has gone to leading edge producers like intel and samsung. And mike schmidt who leads the chips office at commerce tells us the focus now is on sending smaller awards to dozens of Smaller Companies along the supply chain. The goal is to provide grants for equipment and material suppliers on one end all the way to packaging facilities on the other. Our goal when were evaluating an application is first and foremost to assess the benefits of the application for economic and national security, and then second to negotiate as good a deal as possible for taxpayers. Reporter one company competing for a chips award is iqe. A ukbased company that produces whats called compound Semiconductor Wafers for Companies Like apple. Its ceo says he recognizes the interest in funding ai chips but says its also crucial to fund the materials that help them work. Our conversation with chips office is about capacity and new technologies. And we are having very constructive conversations. Im pleased to see them looking at the industry as a whole. Reporter now Industry Experts say funding these suppliers is key to making sure that chip manufacturing in the u. S. Can last for the long term. G guys . Megan, thank you. I would turn to you, michael farr, and say intel was seen as the clear beneficiary of these handouts. Is that a stock youd stick with . Are there others . Intel has gotten beating up. Theyve come way down off the highs. Is megan still here . Probably. Is she still because i was just going ask about the capacity. This was a big part of the supply chain problem when we couldnt get chips to put in new cars. We stopped production lines, right . So i think you have to look at who can actually deliver the chips that we need, and intels okay, but its still in my opinion nvidias world. Its nvidias world, and its still Taiwan Semiconductors world which brings in a political conflict. If something happens in taiwan, doesnt that even make indinvidia more exclusive, gaming and stuff. Getting hightech production facilities up and running and tooled in the u. S. Is a multiyear process. You just cant come in and say were going to produce these highest level of chips, the low level of chips you can get and theyre cheap. Put it differently for all that intel has benefited from the handouts, the stock is nothing like an nvidia. Although its obviously its done much better of late. I think theres a ways to go in that story. But a contrarian and a fundamental investor i think would look at it and say, and i havent jumped in that intel water yet, but probably theyve got the tools, the experience, and the Balance Sheets that, yes, they can get there. All right. A quick power check as we head to break. On the plus side, today is robin hood. The online brokerage soaring on buy of b of a and cites retail investors. On the negative side, cracker barrel, cutting dividend to 25 from 1. 30 per share and forecasting lower sales and profits ahead. This is our future, ma. Godaddy airo. Creates a logo, website, even social posts. In minutes how . A. I. impressed ay i like it who wants to come see the future . get your Business Online in minutes with godaddy airo its odd how in an instant things can transform. Slipping out of balance into freefall. the stock market is now down 23 . This is happening people. Where there are so few certainties. laughing look around you. You deserve to know. As we navigate a future unknown. Im glad i found stability amidst it all. Gold. Standing the test of time. A slow network is no network for business. Gold. Thats why more choose comcast business. And now, were introducing ultimate speed for business our fastest plans yet. Were up to 12 times faster than verizon, at t, and tmobile. And existing customers could even get up to triple the speeds. At no additional cost. Its ultimate speed for ultimate business. Dont miss out on our fastest speed plans yet switch to comcast business and get started for 49. 99 a month. Plus, ask how to get up to an 800 prepaid card. Call today welcome back to power lunch. The day after the dow kissed, as bill says, kissed the 40,000 level, stocks are mainly flat today. Though the major averages are on pace for a strong finish to the week with the dow up a percent, and on track now for its fifth higher week week higher i should say. The s p 500 up about 1. 5 , the nasdaq up about 2 . Michael farr of hightower advisers with us for the hour. We want to spend time talking markets with you. Momentum typically begets momentum, doesnt it . It does. Until it doesnt. Until it doesnt and momentum reverses the other way. Its been a long time since we remember the lower lows every day. Yeah, i mean, if you think about it this way every brandnew high we have ever made in history except for yesterdays has been succeeded at some point by higher high. So this is the trend, this will creep up. These are psychological numbers. Its great reason to celebrate, capitalism, the american way, and the good work and information that comes from cnbc. I shouldnt feel bad if im a viewer and i say, well, you know, ive been hiding my money in car, didnt trust this in cash, didnt trust this. Its still with reason a good time to put money to work if you are going to dollar cost average in, if sure, yes. You never want to stop your discipline. So if you have a discipline, you stick with your discipline. My longtime partner, john washington, said the best time to buy stocks is when you have money, and the best time to sell stocks is when you need money. Otherwise, pay no attention to the levels. Theres a lot of wisdom actually in that. And just holding through various cycles for the long term and letting your money grow and compound tax deferred. Want to mention one of the catalysts seems to be the cpi report. Softer than expected. Enough per people to be off to the races saying, okay, maybe we can have rate cuts after all or what have, seen bond yields drop. Even today the market has given up gains after the feds bowman said shed be open to hike figure needed. Shes been a hawk. This isnt a newsflash. Do you think the feds going to try to push back a little bit and maybe try to say, okay, we need both options open . Yeah, thats exactly what the feds doing through these various jawboning and folks and governors saying we might be open to a raise. Do i think theyre open to a raise . No. What i think they had to do is say they were open it a raise because stocks took off. I saw that number and i saw futures take off, then they pulled back. I said that was just you know, that was the box trading. That was the algos that ran up. But theyve got got ahead of itself. Markets have been doing this to the fed for two years now. Every time the fed says were going to be data depend end or do this and that, they go, fine, no, were going to cut, well have seven or eight cuts. No, youre not. The fed never said it. Then the fed comes back love the fed because they give us i almost said Something Else stuff to talk about. Give us plenty to talk about. We spent the last year worrying about what the fed was going to do, what it wasnt going to do. Worry about inflation. But now more and more people seem to be worrying about the consumer. Are you . Sure. You have to worry about the consumer. The main fundamental support for the entire u. S. Economy is the consumer. And if you read home depots Earnings Report that they are seeing smaller tickets and fewer tickets and that consumers are deferring big purchases, a lot because maybe home sales arent at the same pace and theyre going to focus on pro and everything else. Youre also seeing this from even the fast food restaurants, some of them, saying consumers arent spending as much when theyre going and getting pushback. Are we finally reaching that point where the consumer is running out of wallet . They had a bunch of money on their Balance Sheets. We know that wages have kept up. But we need to watch this consumer, the strength of the consumer and their ability to spend will dictate whether these companies can continue to have topline sales. Yeah. All right. On that note, tune in to cnbcs Financial Adviser summit wednesday, many 22nd. May 22nd. Hear from investing experts about the current bull market, answer all of your questions, give you a lot more. Scan the qr code to register or head to cnbcevents. Com fa. Well be right back on power lunch. And when i got there, they have the sushi this is clem. Like sushi classy clems not a morning person. Im tasting it or a night person. Or a. People person. But he is an i can solve this in 4 different ways person. And that person. Is impossible to replace. You need clem. Clem needs benefits. Work with principal so we can help you help clem with a retirement and benefits plan thats right for him. Im short but im. Im confident. You know . Let our expertise round out yours. Welcome back to power lunch. Now its workers at a mercedesbenz plant in alabama voting today whether or not to unionize. Phil laboe is tracking that story. As we speak the mlrb are counting votes at mercedesbenz in alabama to see whether or not the members have voted to unionize. We expect the results sometime this afternoon. For the uaw, this continues a pattern that they laid out the strategy for sometimes ago. After they wrapped up the bigthree negotiations they said were going to target the foreign automakers as well as ev final assembly and battery plants, and the whole idea here is you got to reverse the membership decline if youre the uaw. Theyre down to roughly 370,000 members. Weve talked about this for weeks if not months, that this is a decades long decline in membership, and the only way youre going to reverse it is by organizing nonunion plants. There are 21 nonunion plants in the United States. Most of nepal are owned by them are owned by foreign auto ma makers, most in the southeast. The uaw were successful last month at vw in tennessee. Well see what the outcome is here for mercedesbenz in alabama. What happens after that, couple of responsibilities have been mentioned. A hyundai plant in alabama as well as a toyota plant in missouri. Those are two areas where the uaw believes it could be successful turning those plants into uaw shops. First, theyve got to organize mercedes in alabama. Again, the nlrb counting the votes. We should have the results sometime this afternoon. Guys . Phil, what you know, the other way that the uaw has been trying to increase membership is by being active in organizing believe it or not workers on college campuses. True. Right . A big part of the uaw membership is outside of the auto industry. Right. People dont understand that. People dont realize that. Thats a big part of what theyve done over the last 15 to 20 years. And they had to, tyler. Look, a lot of the decline in membership at uaw is because the big three have eliminated so many plants over the last 50, 60 years. Thats just a function of the fact that theyve been losing market share obviously. But manufacturing has become much more efficient. You simply do not need as many people in a final Assembly Plant as but 2 or 4 as you did about 20 or 40 years ago. If youre the uaw you can try to organize plants like theyre doing with mercedesbenz or say where else can we take our Union Message and get members. Phil, its michael farr. Nice to see you again, always. We saw what happened with that volkswagen plant in tennessee. And you know, from the old guys perspective, you look at a union and say, all right, theyre going to go out and sell better benefits, better salaries, theyre going to make a better package for the workers, and then theyre going to add that through and increase car prices and product prices, and its going to create a certain level of inflation that they pass on. Is that still the sale . Is that the sale they made it tennessee . Is that the sale theyre trying to make in alabama . Thats not the sale how are they youre youre right about the message, and the message is a Pretty Simple one. If you are a mercedes line worker in alabama, youre looking at people up for General Motors in michigan saying wait a second, they got a 25 raise. And they were already making more than me . I want a piece of that pie. Thats a pretty easy message to sell. In terms. Your other point that youre making, in terms of higher prices means more inflation and makes it makes these plants less competitive, thats what were hearing from governors of southern states. Kay ivey, governor of alabama, has been emphatic along with other governors saying dont do this, you do this, youre not going to have a plant that is as effective, as Cost Effective for the automaker, and someday that automaker is going to make choices about where to cut costs. All right, phil. Thank you so much. Phil lebeau reporting. Well know the results of that vote sometime later today probably. Lets get to kate rogers for a news update. Kate . Tyler, the man convicted of attacking representative Nancy Pelosis husband with a hammer was just sentenced. David depape received 50 years total on two charges, but the sentences will run concurrently. It amounts to 30 years behind bars. Depape fractured paul pelosis skull when he couldnt find the thenspeaker at their San Francisco home in 2022. He goes to trial onstate charges for attempted murder later this month. Actor alec baldwin could see charges dropped against him in the deadly onset shooting of his film rust. His attorneys just made their arguments. The judge is expected to rule next week. It follows the manslaughter conviction of the films armorer, hannah gutierrez, who loaded the live round into the prop guidance that went off killing the cinematographer. It could be the most famous napkin in history. The napkin signing a Young Lionel Messi to barcelona sold to a british auction house for 965,000. The agreement to bring on the 13yearold messi was written almost 25 years ago at a barcelona tennis club. Tyler, back to you. Best deals get done on a na napkin. Thank you. Did one of my own that way. Still ahead, we wrap up our anatomy of the consumer series. For our finale were going to dig into the psychology of spending. Well be right back. [ growl ] ready for the road trip. Everyone comfortable. Yep, theres plenty of space. Ive even got an extra seat. Wait no, no, no, no, no. [ gasps ] [ indistinct chatter ] [ sigh ] lets just wait them out. The volkswagen atlas with three rows of seating for seven. Everyone wants a ride. [ snoring ] ok, get in. [ speaking minionese ] yippee and see despicable me 4 in theaters july 3rd. Rated pg. Norman, bad news. I never graduated from med school. What . But the good news is. Xfinity mobile just got even better now, you can automatically connect to wifi speeds up to a gig on the go. Plus, buy one unlimited line and get one free for a year. I gotta get this deal. Thats like 20 a month per unlimited line. I dont want to miss that. Thats amazing doc. Mobile savings are calling. Visit xfinitymobile. Com to learn more. Doc . Welcome back. All week long on power lunch weve been breaking down the health of the consumer, and major sectors from retail to restaurants and travel. Today we wrap up our series looking at the most complex part, the one often hardest to understand, the brain. Were diving into the psychology of the consumer. The latest reading on Consumer Sentiment from the university of michigan showed the index falling to a sixmonth low, largely on inflation fears. For the most part, the average consumer is still spending. So what would have to happen for them to start really cutting back . Here to discuss is joann schuh, director of the surveys of consumers at the university of michigan. Great to sort of meet you. Welcome. My pleasure to be here. What do you think some people say, you know, the drop in Consumer Sentiment, reality is consumers are spending and theres some divorce there thats do you think thats the case . Or what do you think your survey is telling us . Not at all. While it might have surprised some people that Consumer Sentiment is so low considering that Consumer Spending overall is quite robust, consumers are not at all disconnecting from reality. What weve seen over the last two years is that consumers have noticed that inflation has softened, they are perfectly aware that labor markets remain strong. And as a result, you know, they they do have a good sense of how the economy is going. However, it doesnt show that consumers are thriving. And really the main thing thats supporting Consumer Spending right now is strong labor markets and strong incomes. And you know, labor market strength appears to have softened a little bit more than expected in the most recent readings of the labor market. So thats a bit of a concerning sign because, again, this is the one thing thats really supporting Consumer Spending. Whats so interesting to me about behavioral economics is that it is so often counterintuitive. And you talk a little bit about how consumers may be feeling today, a little bit defeated, defeatist about intractable housing prices, food costs going up, so on and so forth. One might think that if consumers feel defeated that they would pull back. You say they may do exactly the opposite and just say, ah, the hell with it, let me spend it anyway. Yeah. I think what we are we have to look to the data. What we are seeing is a combination of negative attitudes and positive spending. And this positive spending is not a reflection of some sort of internalized, secret sense of confidence that consumers have. And instead my interpretation is that consumers see that a lot of aspirational goals that we talk about as part of the american dream. You know, homeownership, paying for college, paying for college for your kids, having a comfortable retirement. With high prices and Interest Rates now, those aspirational goals just feel increasingly out of reach. And as a result, i think consumers are not really theyve begin up on saving for those things. And with strong labor markets, that enables them to spend now. I think thats what were seeing in the consumption patterns. Dr. Hsu, its michael farr. When youve looked at these patterns before, where the consumer ad tuesday perhaps are getting a little bit attitudes perhaps are getting a little bit weaker, how do the cycles end . We have inflation, higher prices, inflate the rate of those higher prices is decreasing. Thats a good thing. We have real Interest Rates. Is there is there a point where the consumer runs out of wallet, or do they just run out of attitude or both . I think the wallet is going to hit earlier than the attitude, but it depends on how labor markets are going. Again, the reason why consumers can even afford to spend in spite of their dower attitudes about the economy is because of strong laker markets and incomes are strong. What we see in data is that consumers broadly have been expecting strong labor markets to persist. In our most recent reading in may, our may preliminary data, Consumer Expectations over labor markets have softened a little bit. So you know, thats an early possibly an early sign of oncoming weakness for consumers. As of now, strong incomes are supporting Consumer Spending. I think the conclusion from every part of the consumer weve checked in on this week is that its really down to the labor market. Yes, i think thats perfectly consistent with what we are seeing. And so i think people who watch the economy should be paying close attention to labor Market Expectations because i do think thats going to inform how consumers behave in the year ahead. All right. Thanks for joining us. We appreciate your time. My pleasure. Up and coming up, weve got our eye on ai, a special ai edition of three stock lunch is ahead on power lunch. Well be back in a minute. 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 welcome back, everybody. Bond yields rising today as investors continue to digest this weeks inflation data. Lets get to rick for an explanation. Hi, rick. Hi, tyler. Indeed what a week. The ppi was about the downward revisions to last month even though this month was hot. Cpi, it was cooler, but significantly higher than the feds 2 target. Retail sales was week, and today leading Economic Indicators not a top tier statistic on the economy, but an important one. Minus. 6, worst since october, 25 out of the last 26 months have been negative. Look at an intraday of twoyear note deals. Weve popped up today. Around 11 00 eastern, you notice that line that popped up . If you put a twoday chart, theres your explanation. Its momentum technical trade on a friday. We traded above yesterdays just shy of 4. 80 high and it accelerated to the upside. Temps were the saim same. If you look at twos and tens you see yes were up on the day in twos up four and tens were up four. On the week were down five and twos, down eight and tens. It shows that two tens is a little more inverted, longend rates are surprisingly low considering. Back to you. Thats an interesting point. Rick, thank you so much. Have a great weekend. Were celebrating asian american, native hawaiian and Pacific Islander heritage all month long. Heaters our own deirdre bosa. Asian americans own an estimated three million businesses in the United States while native hawaiians and Pacific Islanders own nearly 90,000. Collectively the group employs close to five million workers. The u. S. Small Business Administration says thats just under 200 billion a year paid to work forces. For heritage month, im deirdre bosa. 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. The all new godaddy airo helps you get your Business Online in minutes with the power of ai. With a perfect name, a great logo, and a beautiful website. Just start with a domain, a few clicks, and youre in business. Make now the future at godaddy. Com airo its time to feed the dogs real food, not highly processed pellets. The farmers dog is fresh food made with whole meat and veggies. Its not dry food. Its not wet food. Its just real food. Its an idea whose time has come. Welcome back. Its time for todays ai focus three stock lunch. Here with our trades is gina sanchez, a cnbc contributor. Welcome. Were going to start with reddit. Shares were up big after announcing its openai partnership, 85 increase so far rivaling nvidia. I think its a super cool idea, and potentially lucrative for reddit. You say its artificial ignorance. Talk about that. Yeah, if you think about the Business Model of reddit, it is really dependent on a whole lot of free contributors. In fact, an army of free contributors that are putting information and information isnt necessarily well fact checked, great information. Sometimes its just information. It gets goes into the echo chambers and beis picked up by Artificial Intelligence. You are what you eat and the same is ingestion into a. I. Bad information begets bad information. Its not just artificial inrance but artificial inbreeding of information. Interesting. Memorable phrasing there, gina. Thank you. We asked you to give us a big cap play in a. I. And maybe not surprisingly you chose nvidia. Yes, this is the biggest of big cap names in the space. It is really, really firing on all cylinders, and adoption of a. I. Is happening everywhere. So, if you think about tech, eating everything in the 90s, now a. I. Is eating everything in tech, and its showing up everywhere driving revenues for the stock. If you look at its trailing p. e, thats 34 times on a forward looking basis for the growth were expecting both top and bottom line from this company. Down a bit today, michael. Close to an all time may have hit an all time the day before. Its the thousandpound gorilla. Yes, its expensive when you look at it on a multiple basis but on a growth basis and peter lynch says Earnings Growth is the most significant indicator of Price Performance over time. This has Earnings Growth at the forefront of a. I. Theyre really tough to bet against them. All right, lets turn then to a very different way to play a. I. , gina. You came up with as midtronnic. Explain. Medtronic is one of the devicemakers. Like i said it is eating everything and health care is no exception. Medtronic has gotten regulatory confirmation for five a. I. Efforts that a. I. Products that they are doing including an a. I. Generative system for diabetes, which is mini med and they have an a. I. Product for endoscopy, so lots of ways to do it. In fact, just last quarter you heard about medtronic talking about the adoption of its a. I. Surgical planning for spinal surgery that has been shown to improve outcomes for spinal surgery, so this is one of the plays where you see an industry where, you know, demand is nearly unlimited. Resources are very limited. A. I. Could actually have an enormous impact on driving demand and, quite frankly, if you look at this stock on a forward, you know, p e basis its trading at 16 times very attractive with strong and stable margins. Michael . Ive owned it for a long time. I like theyve had consistent and positive sales growth. Once again i agree with gina, and i think youre going to see not only medtronic but a lot of other companies particularly in the med tech space that benefit from a. I. Gina, thank you very much. Gina sanchez, we appreciate your time. Remember, you can always hear us on our podcast. Its your podcast too, everybody. Be sure to follow and listen to power lunch on your favorite streaming service. Well be right back. Im not a doctor. Im not even in a doctors office. Im standing on the streets talking to real people about their heart. Hows your heart . My hearts pretty good. You sure . I think so. How do you know . Youre driving a car, you have the check engine light. But the heart doesnt have a hey, check heart sign. I want to show you something. Put both fingers right on those pads. There you go. In 30 seconds were going to have a medicalgrade ekg reading. There it is that is you. Look at that. With kardiamobile, you can take a medicalgrade ekg in just 30 seconds from anywhere. Kardiamobile is proven to detect atrial fibrillation, one of the leading causes of stroke. And its the only personal ekg thats fdacleared to detect normal heart rhythm, bradycardia and tachycardia. How much do you think this device costs . Probably a thousand. 99 wow. Thats impressive. Checking your heart anytime, anywhere has never been easier. Dont wait. Get kardiamobile today for just 79 at kardia. Com or amazon. all right, welcome back to power lunch. Three minutes left. Several more stories well talk about right now beginning with gamestop. Shares tumbling more than 20 after revealing plans to sell additional shares and a year over year drop in First Quarter sales. In a filing the company said it expects net First Quarter sales between 872 and 892 million down from 1. 2 billion a year ago. Gamestop more than doubled in value earlier this week thanks to those Roaring Kitty tweets. I am always beware of stock tips from that. Those things can go up fast and can go down really fast. If they say theyll sell and bring a Stock Offering when its making new highs, byebye. Bringing new shares to the market as profits go down, not usually a good sign. No, thats what the company wants, more investors to come in and take advantage. New data found one in seven genz have maxed out their credit cards. That compares with less than 10 of genx. Less than 5 of the boomers and genz is born between 1995 and 2011. Is this different from historical norms. You always expect the younger ones to be more cash pressed than the older wealthier theyve got to figure out youve got to pay this money back one of these days. I truly i actually had a friend in college who said, i cant be out of money, i still have more checks in my checkbook. Thats absolutely god is my witness true. You learn the hard way. That might have been my roommate. All right. Finally, one of the wildest stories weve heard, the number one golfer charged with assaulting a Police Officer among other charges. Scottie scheffler trying to get around a line of traffic at Valhalla Golf Club near louisville, the site of this weeks pga championship. According to police, an officer trying to stop him was dragged to the ground and injured. Result, scheffler arrested. Theres the mug shot and then released. He made it back to the course for his 10 00 a. M. Tee time and shot 4 under par and moved into first place and birdied the first hole, michael. How he made it to the first hole after being in the jumpsuit then he birdied the first hole . This guy is a lot more to learn. There were apparently lots of dash cam, lots of body cams involved here. There had been a fatal accident earlier in the morning that was backing up traffic and i believe he drove around onto the median. He claims that there was confusion as to what he was supposed to do and that and the officers say, no, there was no confusion. He interfered but well see. Wow. Lets talk about the markets. Watch three thing, fed, consumer, and earnings. Quickly take us through it. You know, all of these things seem to be in a bit of conflict and the fed is saying were not going to do anything. The consumer might be getting a little bit weaker and earnings are still okay so i just caution investors, line from my favorite poem, whether or not its clear to you, no doubt the universe is unfolding as it should. Weve been through this before. Everythings reasonable. Stick with your longterm plan. Youll be fine. Michael, its been great having you with us. Thank you so much to both of you. Thank you. Great to be with all of you. Hanks for watching power lunch. Closing bellst starts right now. Im scott wapner and this hour begins with 40k and beyond. What immediates to happen to have stocks make new milestones. Your scorecard with 60 minutes to go in regulation looks like this. After this race to new records taking a breather as you can see today. The major is mostly mixed. Interest rate, theyre a touch higher too. That may be capping activity just a bit and stocks, well, they could also be looking ahead to a busy week with nvidia earnings looming especially large next wednesday. It does take us to our talk of the tape. What is ne