Explode. Speaking of ai thats been powering tech, but dont go with the high flyers. We have some under the radar names, and one sector and a name thats a bail. Thats coming up lets start with the markets with some recovery, we hope. Dom chu has the numbers. Its a recovery, modest for what happened yesterday, but we are seeing green, fractionally so to kellys point, the dow at 39,133, up about 68 points about 0. 2 of a gain there the s p 500 is now just above 5300, back to that level, 5304, up 36 points, 2 3 of 1 gain there. And it has been generally a positive day, because even at the lows of the session, we were up roughly 11 points and up about 44 points towards the highs of the session, so tilting a little more towards the higher end of that range. The nasdaq composite, the ted cruz heavier index, show up about 180 points, 16,969. Now, well move from stocks to the more macro commodity side of things because what we have seen over the course of this past week is some really decent highs, and then a pullback from those highs, especially in two places that hit records earlier on monday, copper prices and gold prices hit records, just on monday and then its been a downhill slide ever since over the last week copper prices down 6 , gold futures down 3. 5 . Even crude oil is down about 3 , as well. A variety of factorsplaying in that story a lot of that being the prospect for perhaps for longer Interest Rates. Maybe some demand worries coming from other parts of the world on a relative basis, driving some of that. But, again, when you hit those record levels, maybe not a surprise theres a breather in the commodity complex. And then stock wise, we have a handful of names that are generally in the green, in recovery mode, as well but microship technology, and qualcomm, yes, theyre all computer chip stocks but each hit record highs in the session today. So they all get little stars on the side of their names. So watch the chip side of things, not just nvidia. And the vaneck was 14 cents away from hitting its alltime high back over to you its interesting about the commodities. I read this morning, Michael Hartman said were on track for the commodities to be the winner this year, making it the third out of four that commodities could be the best performing asset class. Maybe well use that word again, super cycle dom, thanks stocks they be rebounding today, but uncertainly for higher than longer rates remain the focus. Lets drill down on what this means for fed policy and the tech sector. The magnificent seven, which have been driving the market to highs. Joining me now are my three guests its great to have you all here. Larry, ill start with you overall, just talk to me about where you stand on the markets nvidia was better yesterday, wasnt enough to save the kind of worst day in a year more broadly, and a lot of people are worried about the fed here so, a couple things i do think technology continues to be a shining star throughout this earnings season whats happened during earnings season, its been a microcosm of what weve seen for a significant period of time earnings continue to keep pace with the price appreciation of the stocks but more importantly, youre seeing these companies with incredible profitability, and what theyre doing with those profits is buying back their stock. They are doing increasing or initiating dividends, and then investing for the future, so theyll continue to keep their Competitive Edge i still like that tech sector. I guess nvidia is that kind of a hold your nose and buy it or buy it excitedly . Ive just got to ask what is the path from here with a 2. 5 trillion company, and as tom lee was pointing out recently, a tech sector or as mike santoli said if you add some of the staples, 38 of s p profits already. Does that profit share have to keep growing how much more bullish can you be how much more can they go . So, i yeah, go ahead. Im sorry larry, go ahead again, i dont follow individual stocks. But when you look at these companies today, a lot of people want to think theyre back to where they were around 2000. And theyre completely different companies. Their profitability is so much greater than margins are so much greater. The companies are so much more diversified than in 2000, and that sets up a longer runway to continue to rally Going Forward. So youre in the 1995 camp, were in that moment in the cycle, it sounds like. Kim, jump in here. What were you going to say well, i was going to stay it depends on lot of things, but it looks like right now, the people who are investing in technology are the Technology Companies themselves, because they can see demand and i think thats super exciting and growth begets growth i think that is whats happening. So could it become 50 of the s p 500 . Maybe. But at this point, theres a lot of good out there, because not only are they entertaining stocks, like netflix and meta. I mean, i dont think either one of those like save lives but this whole ai thing, it could move into greater productivity and the ability to optimize many things, which we cant right now through technology and thats why i think companies are pouring money into that sector yeah. So kim, i guess would you you know, im looking through your notes here to see the names in particular you like. Weve talked about the intels and the chip names whats the strategy now for you, given what ai is capable of doing . Sure. Well, i think it is to wait out the cycle. I think what happens a lot of times in any new technology, like god knows back in the late 90s, 3d printing is something that kind of was a boom and a bust even autonomous driving. I think in 2017, if you would have said, are we going to ever drive cars in 2024 ourselves, the answer would be no and they would be wrong. I knew they were wrong, because i know this Technology Takes a very long time to develop. So if youre going to win, ultimately in this area, you have to wait a very long time. And were in the just initial flushes of this. So please, dont forget that, investors. So where does that lead you towards then in terms of picks in that space, if any . Sure. I mean, i dont own nvidia for the portfolios that i run or my own. But thats certainly is a name that doesnt look like it has much against it. Although if youre going to have three to five years as your timeline, maybe competitors come in even sam altman is talking about the guy who is the ceo of openai, hes talking about starting his own chip company. So Pay Attention to that so i think you have to be invested in chips, but maybe that chips over time as new winners and losers are developed. I think microsoft is probably well positioned to take advantage of this initial run in using ai for consumers and businesses yeah. Mark, lets turn to you and figure out what the feds going to do here even this morning was a good synopsis of whats going on. The Consumer Sentiment number was terrible, Inflation Expectations were up this is a fed that thinks they have to lean back against that we have seen a number of expectation surveys lately well, no, i dont think so. I think the Inflation Expectations in the surveys are t tied directly to the cost of gasoline prices, which have pushed up over the last couple, three months and Inflation Expectations with it more broadly, expectations are well anchored, particularly if you look into the bond market and what investors are thinking. You combine that with overall inflation, which continues to moderate i suspect in the next couple, three months well get much better inflation statistics. They dont have enough ammunition to lower rates, so my guess is in september. But in that period is that because youre bearish on the economy do you think well see negative payrolls or it will come down as the expansion continues . No, i think the fed Mission Accomplished i think they have two objectives, were sub4 unemployment for more than two years. In my view, they need low and stable inflation thats the mandate and i think theyre there theyre there in everything except what they want which is 2 inflation they need a couple three months with numbers close to that before they decide to cut rates. But i think theyll get those numbers in the next few months larry, youve been doing some interesting anecdotal digging on this watches, where else do you see, used vehicle prices. You think the official stats do need to play catchup, and that could be a dovish development. I think that the realtime indicators are showing that inflation is decelerating very quickly. Whether its rental prices where the statistics show its up around 6 , but if you look at rent. Com, its pretty much flat. Same with watches, used car vehicles that could see further downward pressure as inventory levels pick up. And oil is about 10 lower than where it was at its most recent peak here in april so i dont necessarily think that the window is closed for even this july keep in mind, we get three pce numbers between now and that july fomc meeting. Two cpi and two jobs reports so two months is like an eternity in this market. I guess, mark, just to end the conversation with sort of the things that as you see it play out, it souls like goldilocks, so why is Consumer Sentiment so poor then, is it all because of gas prices . Well, i mean, youre looking at the university of Michigan Surveys. Theres a political overlay on top of the survey. So you can look at the survey results from republicans, independents, and democrats. Republicans are pessimistic, thinking the economy, according to the survey, is as bad as it was in the teeth of the financial crisis obviously, thats not the case so i think people are looking at the world through the prizm of their politics particularly leading up to the election and given the political is it i strongly recommend that you look at the Conference Board survey of Consumer Sentiment, not the university of michigan the Conference Board is where its been on average going back to the 80s. Thats much more and is consistent with what consumers are doing, which is out there spending i was going to say, i wonder if the answer is just more simply that consumers are fed up with prices where they are, not that theyre rising much further, but this pushback just being where they are sure. Thats definitely why people theres a disconnect between the happy talk that economists like me spout and why the average american thinks the economy isnt that great they dont think its bad as the university of Michigan Survey would suggest. But the prizes, remnts are up 2, 25 from three years ago food prices have gone flat they cost no more today than a year ago, but are up 20 from three years ago and gas prices are up from three years ago. Those are staples that everyone has to buy, and you look at that and say this is not a good time. Ive seen inflation very high, most americans have not. This is the first time most have seen it and felt it. Consumer confidence last month was at a twoyear low, down to 97 so its not exactly as if no, no, wait, wait, take a step back. The average is 100 since the beginning, so its right on average. Fair enough we need more data. Lets see what the next couple months bring we always need more data, kelly. It could be the start of a trend. If it keeps going down, you know it could be more meaningful. Okay, fair enough kim, bring us home. Okay. So im just a regular consumer, right . At a certain point, i am shocked, shocked at the cost of some groceries like, 10 at costco for grapes ive never seen grapes in double digits before. And i think its these topical items that people walk by and are amazed at. Yes, i see other prices coming down, but there are some prices of things that should be really cheap that are really expensive. And i think that puts lots of people in a sour mood. It just does no pun intended, i think dom and i were the only one that knew the prices of grapes. Eggs are cheaper, but other things are not well leave it there thank you for your time today. Appreciate it, especially going into the Holiday Weekend larry, kim, and mark since were nearing the end of earnings season, almost everyone has reported. Lets get over to dom chu for more its not about the rotisserie chicken for me i buy grapes, milk and eggs at costco the stretched consumer may be one of the reason why is theres not as much clearness or clarity about whats going on with the Consumer Health picture, and how much theyll spend on discretionary things the discretionary sector within the s p 500, over the course of the past year was a decent outperformer over the broader s p 500, until the point of the start of this year thats when you can see that blue line, which is the Consumer Discretionary sector has lagged, the orange line which is the broader s p 500 in terms of performance. Weve been range bound as you can see here for that Consumer Discretionary trade. One of the reason why is we are talking about this is because we are seeing some decent Earnings Growth within the Consumer Discretionary sector if you look at every other company, theres not that many, that are yet to report the results. If they all report as expected, the q1 earnings scorecard says the Revenue Growth rate will be up 5 compared to 4 for the s p, so outperforming there slightly and the earnings side of things, it gets more pervasive if you look at the blended Earnings Growth rate, its 28 compared to the broader s p 500s 8 blended growth rate but theres one company in particular, and maybe you dont need to guess which it is, thats driving the bulk of Consumer DiscretionaryEarnings Growth, and thats a magnificent seven stock in tech Consumer Discretionary, thats amazon. Com right now over the last year, up 55 . The reason why were see thing is because it is a massive driver in the sector its not just the biggest weight in the sector but a big earnings driver for the entire sector overall. Kelly, just to give you an idea, its about 216 Earnings Growth. Its almost like instead of saying Consumer Discretionary, we just just say amazon. Coming up, one of the largest Nontraded Reits plans to limit investor withdrawals. And one seeing commercial property prices falling further. Well look at the headwinds facing that market and three names we can talk about. Is americas power grid ready to handle the surge from generative ai . Not to mention were expected to see an abnormally hot summer well check in with duke energys ceo lynn good the exchange is back after this 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 at enterprise mobility, our experts always see another road. Because when theres no limit to how far mobility can go, theres no limit to how far businesses can go. her uncles unhappy. Im sensing ant to howunderlying issue. An go. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Welcome back to the exchange. Real estate is one of the worst performing sectors this week this as one nottraded reit says it will limit investor withdrawals. Diana . Well, kelly, the 10 billion s reit, a nontraded reit, is just losing gones of cash due to lower valuations in commercial real estate brought on by higher Interest Rates so theyre now limiting redemptions. So investors cant pull out all their cash another option is to sell assets, its properties but in a letter to shareholders, they said their forecast, which includes the feds lower rate forecast, improving Capital Markets and the 70 of decline of new construction starts, across residential and industrial, that all points to what we believe will be a more advantageous environment for realfuture as a result we cannot recommend being an aggressive seller of real estate assets today interesting. As for the publicly traded reits, i just want to clarify the difference between those and Nontraded Reits like sreit and blackstones breit. Reit stocks, thats public, are repriced every day in the market as cash flows and Interest Rates move so as an investor, you can buy and sell much more freely and valuations are adjusted in realtime now, Nontraded Reits are less liquid and their valuations are updated much more slowly so that said, the S P Real Estate sector is one of the worst performers of the week, down 3. 7 . It is off the 8 there that 52week high, and that is the furthest from the high of any s p sector so still a lot of trouble in cre. Kelly . So you dont think theyre getting any surprises waited investors in the publicly traded reits in taking this information and marketing it every day exactly they all have the same assets, but there are many different sectors. You have office, retail, those are the most beleaguered, but you have multifamily, industrial reits, digital reits so, you know, the reit sectors across the board are not in terrible trouble, and, again, in a publicly traded reit, if you are an investor, youre buying and selling a stock and you know exactly what you have, what you can buy and what you can sell. Its not the same as in those Nontraded Reits diana, thank you very much. We appreciate it lets turn to some of those publicly traded names, three of my my guest is bullish on. Here with his top picks is ron camden ron, great to see you. Welcome. Thanks for having me. So we havent checked in, in a few months time. How would you say the reits, broadly speaking, is holding up . Good question so this year, Interest Rates have been higher than anticipated. If you think about the beginning of the year, everybody thought the fed would be cutting in march. Now expectations have been pushed back to september, if not later. And thats been a headwind for the reit market, both the multiple and as well as the refinancing. So as you said before, the reits are one of the worst performing sectors yeartodate but i want to remind that there is a lot of diversification in the reit market, and there are sort of pockets of opportunities still left what are the Common Threads between these reits, which are having problems in the private markets . Whats the main problem, you think . I think real estate is a longterm investing asset class. Usually you think about five to tenyear holds if you think about the different Asset Classes for multifamily to industrial, they really have very strong fundamentals going longterm. But i think some of these private reits, being able to offer monthly liquidity, creates a scenario where you can be a seller to meet those redemptions. Thats what you want to avoid, because when you are a for seller in a tough environment, youre not going to get to frit participate on the upside. I think youre right, that ultimately its the higher for longer rates that is really challenging a lot of these trades that we thought perhaps had their worst days behind them lets turn to the bright spots what are they . Yeah, so the regency is the highest quality open air owner in the u. S. Right now. And it trades very cheap, about 13. 5 times earnings. Phenomenal Balance Sheet this was one of the only companies that did not have to cut its dividend during the pandemic, just to give you a sense of the defensibility of the cash flow. We think its traded down too much, concerns about Interest Rates, concerns about sort of tenant closures and so forth this is a business that we think can grow 5 , plus or minus, for the next couple of years with a 4. 5 dividend yield. We like the entry point, the quality. Its a good opportunity. Other one you mentioned is one people were obsessed in 2022, prologis that had all the right things it had logistics, warehouse, the ecommerce boom during the pandemic shares are now about, more or less, 40 off of those levels. Why do you think it makes sense to pick up here . Yeah. Its a good one to touch on. So they put out threeyear targets in december, and three months afterwards, they saw leasing activity slow in their businesses they called out two areas specifically one is Third Party Logistic providers, as well as southern california, which was a great covid winner i dont think the businesss fulls have changed longterm because of the higher Interest Rate environment, potentially the election, tenants are taking longer to take on lease to commit to space. Theyre not giving backspace, just taking longer to commit to new space. So, whats missing, i think what the market miss is as you go into 2025 and 2026, the supply picture becomes very compelling. This their markets, supply deliveries will be down 60 to 70 from the peak. So, to the extent that we the economy continues to grow along at 2 , 3 , tenant also start taking backspace and in a declining supply environment, we think its a really good entry point to pick up the stock your last name, its been a good call. Ron, well check back in with you soon appreciate your time today thanks so much. Still to come, lets take a look at todays mystery chart, which is down 65 in a year, and now announcing a new round of layoffs. Can you guess it thats on the other side of the break. Were back on the exchange after this welcome back to the exchange. Lucid was the mist try chart we showed you before the break, after revealing plans to cut its workforce by 400 employees, and most of the cuts will be made by the end of the Third Quarter and tesla is slashing production in shanghai. Reuters saying it will be cut by 10 , aimed at addressing weakening demand heres elon musk neither tesla nor i asked for these tariffs. I was surprised when they were announced. You know, tesla competes quite well in the market in china with no tariffs and no differential support. So, in general, im in favor of no tariffs that said, we all know chinese ev demand competition is heating up lets get over to Tyler Mathisen for a cnbc news update kelly, thank you very much. Joe biden and egypts president have agreed to send aid through the crossing the white house confirmed the two men spoke on the phone earlier today and agreed to the temporary solution until the rafah crossing reopens on that palestinian side the agreement comes as reuters reported some of the aid for gaza has begun to spoil, as the rafah Border Crossing remains shut for a Third Straight week, creating a backlog of deliveries of perishable goods. An american man was arrested for bringing bullets on a trip to turks and caicos is now freed. A judge sentenced him to 52 weeks, but 12 months suspended which means he wont serve any time in jail the judge ruled he brought the ammunition unintentionally a former mlb draftee, he was facing up to 12 years in jail and was the first of five american tourists facing punishment for taking ammunition in the country, which is forbidden. So leave your ammo at home if youre going to turks and caicos an italian teenage computer whiz is set to become the first saint of the millennial generation pope francis attributed a miracle to him, who died of leukemia in 2006 he was the youngest contemporary person to be bedatified by pope francis in 2020. Amazing they asked his mom, did you know growing up that you were raising a saint . She said, he was like every other kid. Not so much a saint by the way, my friends daughter went down to belize, came back and bullets were in her luggage. They have no idea what happened. Whoa crazy stuff. See you in half hour still ahead, Data Centers Across the country are expected to use more than three times as much power compared with last year, but are americas utilities prepared to handle the surge in demand . After the break, well ask duke energys ceo how theyre getting ready for the new normal back after this. Champion iron offers a rare solution to decarbonize the steel industry. Which represents up to 10 of global emissions. The Company Recently doubled Production Capacity at its mine in eastern canada. It is now investing to produce one of the worlds purest iron ore. Enabling green steelmaking without the use of coal. Controlling a large portfolio of high purity iron ore resources. Champion is considering Strategic Partnerships to further develop the region. Champion iron. Energy fuels, a leading american uranium producer, is ramping up production to supply expanding Nuclear Markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. Energy fuels. 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 to the exchange. With the need for electricity and energy ever expanding, especially now in the age of ai, lets check in how one of the biggest utilities in the country is managing demand duke Energy Powers 8. 4 plmilli households in six states for more in an exchange exclusive is lynn good, ceo of duke energy. Welcome. Kelly, thank you. A pleasure to be here. You guys, when i think whats the link is it like norman lake norman, lake wylie its a beautiful area, kelly and many of those lakes are lakes built by duke energy thats what i thought was that because you needed the energy for cooling or Something Like that . Related to the power plants, absolutely interesting how times have changed the population down there is tremendous, now the Data Center Demand as well as is tremendous. How big a portion of that is demand these days . Sure. You know, kelly, we have benefited in an extraordinary way here in the southeast from not only population migration, it really began during the pandemic where we have seen just an extraordinary number of customers moving to the area 2. 4 in the southeast, which is a very strong percentage but then Economic Development has come right behind it, and its a very diversified portfolio, evs, batteries, of course, data centers fundamental data centers and those supporting Artificial Intelligence chip manufacturers so were seeing demand like we havent seen in probably 30 years. So you should think of us as a growth industry these days, and were really anxious to pursue that growth in a way that works for our customers and investors. We were just speaking with a Data Center Company that has partnered with dominion in virginia Northern Virginia is also a big virginia for data center usage is this becoming a competitive thing, where to lure some of these mega projects, do you have to be part of proposals, whether its through the Data Center Companies or other parts of the local government to kind of explain and say, heres how make the case, yeah, our power could be provided more cheaply, because these are massive power users. Kelly, what is true is that the size and scale of the growth that were seeing is bigger than what would have been the case five or ten years ago. But its also true that our industry has a history of developing Customized Solutions for Large Energy Users its been important for steel manufacturers and auto manufacturers, et cetera so were bringing that spirit of innovation to our Data Center Customers and our advanced manufacturing customers to say, how can we make sure that our product is not only competitive for you, but affordable for the rest of our customers, as well if you need a customized solution on green energy, how can we accomplish that i think youll see more opportunities for partnership that could be innovative in financing, direct investment it could be a range of options really looking for the best way to structure growth, maintain affordability, reliability, so our states continue to thrive. I have two questions, i probably only have time for one. Are your profits capped by law can you explain for investors, how much growth is there allowed to be . Kelly, we can sell as many mega watt hours as our territory demands. Where the returns are is on the amount of capital we invest. There is a regulated return that we can earn. Typically, our regulatory structure gives us an ability to earn within a band, above and below that return. But it is true that growth comes from selli ing kilowatt and megawatt hours so the more profit we have the potential to generate all within the construct of that regulatory framework, reviewed closely by regulators so as long as your capital use is growing and your investment is growing, your profits can grow as well, because theyre in tandem with that the last question is about the energy transition. You know, how might this massive cap ex have looked five or ten years ago versus how does it look today and how do you think its going to look Going Forward . The amount of capital is increasing, kelly, and i look at just dukes increase we went from 60 billion of five years to 70 billion as we look out over the next ten, it will increase even more. Its a combination of building resources and infrastructure to support this growth, but its also continuing to modernize our system for cybersecurity, for resiliency, reliability and the clean energy transition, introducing renewables, as we retire assets, introducing new assets, perhaps nuclear by the 2030s. So the capital is demanded by the transition and electrification, but also the growth we have been talking about. We think about toyota, samsung, all clients in your area, we know what youre doing to power that. Lynn, appreciate checking in with you thank you for your time today. Kelly, thanks to you. Lynn good with duke energy, the ceo. Coming up, ai will no doubt change the way we live and work. Its already having a major impact on Major League Sports. Well look at how leagues are vegi t thnogy already, next. Are you interested in safeguarding your investments with gold . Alamos gold is a growing canadian gold producer with a long track record of outperformance. Alamos gold. Invest with us. Our growth sets us apart. tony hawk skating for over 45 years has taken a toll on my body. I take qunol turmeric because it helpss. With healthy joints and inflammation support. Why qunol . It has superior absorption compared to regular turmeric. Qunol. The brand i trust. office chatter is it me. Or is work not working . At least, not the way it could work. Your people are buried in busy work. And you might be thinking. Can ai make it all work . Can ai help your people work. Without all the workarounds . Feel better. Make Customer Service work the way customers expect . That one. Make your old tech work with your new tech . Thank you. And todd here is wondering, can ai do all that. Now . No pressure. It can. On the servicenow platform, ai transforms your entire business. Your people work better, your customers are happier, and todd. Well. Hes practically euphoric. Practically. Because when your people work better, everything works better. So what are you waiting for . Lets get to work. Idris elba works here . Mmhmm. Ya, hes super nice. Welcome back to the exchange. Its not just traditional sectors, new ai tools are helping Major League Sports tackle some of their most time consuming jobs julia . Thats right. New ai tools are helping sports leagues save time and money. They manage a massive amount of logistics. The nba has 30 teams, with over 1200 regular season games. So putting together the schedule was traditionally a tedious manual process its improved over the past decade thanks to software, and that process has gotten a whole lot faster, thanks to Artificial Intelligence starting with a pilot last summer, the league partnered with and invested in ai startup fast break to craft its schedule fast breaks Technology Enables the nba to plan matchups and Design Travel around constraints such as rest days, player health, and venn you availability evan wash, who runs the leagues strategy and analytics, says the program is able to easily design road trips for teams, and it helps minimize the number of flights taken and miles traveled ultimately, we write over 1,000 co 1,000 constraints into the system the number of possible schedules is truly astronomical, and its able to return back to us the schedules that best meet those constraints that we set out. Reporter the nba is part of a growing group of leagues using the technology, including the nhl, Major League Pickle ball, and college conferences, such as the s. E. C. And big east. The nba says these latest ai tools build on other investments in computing automation, which together have led to a 40 decrease in the number of backtoback games over the past decade wash says the Ai Technology optimizes Exciting Team matchups, which can drive ratings. Things Like NationalTelevision Viewership dont directly drive revenue, but are important for us to grow our fan base and exposure, and as we are now in the midst of national media, extension discussions reporter leagues are also deploying ai to cut highlights whats what wsc sports says with over 450 leagues and broadcasters its ai tools analyze live sports broad casts, identify big moments and create video highlights instantly to create content for fans across social and digital platforms. Ai is also starting to be used by leagues to make refereeing more accurate. There are various tools for that, and im sure there will be a lot more use cases for ai that help the leagues out helping the referees. Are they replacing jobs, julia you know, we dont have any indication that they are replacing jobs just yet. We asked the nba when they were using fast break, all these new Software Tools to help make planning their whole schedule more efficient, did that mean that people were losing their jobs they said no, these are just tools, theyre making everything work a little better to borrow a quote, its not that ai is replacing humans, its humans with ai replacing humans without it. Julia, thank you mark your calendar for cnbcs game plan summit on september 10th out in los angeles. It will bring together Industry Leaders from the sports and entertainment world. To learn more and register, scan that qr code or go to cnbc events. Com still to come, nvidia is one of the biggest gain they are week, but there are some underloved names you may want to consider thats 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 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. I know. Faster wifi and savings . I dont want to miss that. Thats amazing doc. Mobile savings are calling. Visit xfinitymobile. Com to learn more. Doc . Welcome back stocks are clawing back some of yesterdays big declines after nvidias strength failed to hold up the major indexes what is the source of the market divergence and how should you play it . Jeff kilburg joins us. Great to see you again welcome. Thanks, kelly great to be here. Lets start with palo alto, up 50 in the past year. It had the big drop on earnings a quarter ago. On pace for the fifth straight up week after the losses from the april billings decline you like the stock here. What would you do with it . I do. I want to be a buyer here, but youre absolutely right, kelly, we have seen backtoback, tough earnings call, down 30 on the previous Earnings Report down 10 this week it is clawing back, up about 3 today. I think when you think about the transition, the reasoning, why theyve seen the stock price move lower, is the platformization. I know its not a word, but they want longerterm customers the bundles customers, theres only 900 now, their goal is to have 2,500 that business longer term is going to help them they are the biggest cysign cybr Security Company out there, bigger than crowdstrike. You can own crowdstrike, too look at the threeyear chart pa palo alto is the better concern long term. Despite the change. Yes. Ibm were talking about. It is up 4 this year. Big blue. Medium blue on pace for their seventh positive month in eight. Some weakness in the stock after earnings bernstein called their a. I. Picture muddled but you like the picture. We like to say nvidia, nvidia, but it is interesting. When you talk about ibm, you dont think cloud and integration, but the legacy, the heritage, highpowered computing as the ability to put an a. I. Stack on top of it they are fighting momentum think it is interesting, technically, if you look, kelly, is above the moving average of 264 but it is not above the 50day moving average at 179 there is more room to run for medium blue. This is a stock i own and want to own because these underloved tech names, theyre going to find some love when people start using nvidia and atm, if nvidia goes down. Move on to intel why do you like this even though its been a dog this year . Oh, its been taken out to the woodshed look at intel. When you talk about the way this has been beat up, but think about if it is mets ta, maybe microsoft, maybe our friend elon musk at tesla. Maybe they buyin tell. Supposedly, this chip is sup po supposed to be better and 40 more efficient if thats all true, i just cant understand why this stock is down its a laggard i want to own the laggard. Someone either buys it, selfishly, internally, and plugs into meta at a 1. 2 trillion market cap, or they find their groove later in the year. Interesting thought. Lets get on to three stocks you liked, tech space, but now the bail is nike, also down so far this year. Down for its fifth month out of six. Whats going on here even the googen hahaim is up for innovations. You have to get away from the a. I. Theme and think about what sectors are working this year in 2024 this is the second worst sector, next to real estate. When you think about Consumer Discretionary, if inflation is stickier like everyone is telling us, and youre seeing the middle to lowerincome housing get punished with the higher inflation, theyre not going to be buying new nikes i know the kids, my kids, all still love nike, but if you look on the chart for three years, this has not been a good investment i want my money to go elsewhere, find a different sector. I need a catalyst to own nike again. Sounds like major, groundbreaking, earthshattering innovation or what Michael Jordan coming out of retirement major to own it again. Well tell him. Well let him know broader market, we were checking in before earnings, kilburg. You were cautious on nvidia. It is funny because you were saying, look, this has to work for the markets to work right now. Then we kind of had the opposite happen the stock itself did okay. Yes, theyre doing a split the rest of the indexes, what is going on here . This is fascinating weve seen a couple cycles over my os of trading, kelly. We saw nvidia beating to its own drum, moving assets higher we saw the 10year note move higher maybe no cut this year for the fed, maybe not until Election Year i think this is telling in conjunction with the vix at 12 there are oddities going on, and you could see more volatility. The volatility should rebalance, reconfigure. And ive been buying puts into nvidia, a losing bet, but nonetheless, i want to protect profits here as fast as the high fliers have gone up, you can see them pull back. See the vix at 12, amazing. Wow. Yes. Jeff, thanks. Have a great weekend appreciate it. See ya, kelly. Jeff kilburg. Thats it for us on cathe exchange. Next on power lunch, burger king is rolls out the 5 meal eyo comes out on top th or mcdonalds ill join tyler after the break and try to find out. Stay with us with gold and copper prices pushing towards all time highs, us gold corp. Offers investors leverage to both gold and copper at its project, and mining friendly wyoming. U. S. Gold corp has a reserve of almost 1. 5 million ounces of gold equivalents. Permits to mine zero debt with only 10. 73 million shares outstanding and a portfolio of world class american Strategic Metals assets. U. S. Gold corp, join the golden age. When you need to prepare for unpredictable adventures. gasp you need weathertech. [hot dog splat. ] laser measured floorliners front and rear. [drink slurp and splat. ] scream seat protector to save the seats. [honk ] theyre all yours were here hey, i knew you were comin. So i weatherteched the car can we get ice cream . We can now. Kid proof your vehicle with American Made products at weathertech. Com. Good afternoon, everybody. Welcome to power lunch. Alongside kelly evans, im Tyler Mathisen glad you could join us on this friday. Coming up, a double feature this Holiday Weekend could be a make or break for the box Office Coming off a series of flops is the truth this summer will never, ever live up to the barbenheimer hype of last year. If this