It or not. Today, down just a little bit. Only about 1 , though, from its alltime high at 39,438. Looking at s p, its down very slightly and nasdaq is up a little bit. We are watching big tech as open ai which is out by microsoft, unveils a new model in may team up with apple to put chatgpt on the iphone. 2 in this. Microsoft and google which has its tomorrow is down fractionally. Roaring kitty tweeted for the first time, on x, for the first time in three years. That sent game stop, amc, and blackberry shares higher. That is fundamental investing. That is right. If you are wondering whether policy was too tight or too easy, i think that your answer was. Hosting with us this whole hour, contributor, will come to you. Lets talk markets. Are we overvalued . Are we do for something in the form of a correction . I think we had a little mini correction and now all of a sudden, we got eight days in a row. I think we really went through earnings season. Earnings were stronger than people expected. The earnings were there to support the stock market be where it is. Is it still cheap . No. It is still being carried by some of the big stocks. I think the biggest thing Going Forward is you are going to have data coming wednesday with cpi and where is inflation as the mandate for the fed because the fed is basically saying we are not going to cut rates until we see inflation come down and if inflation does not come down, i dont think youre going to get those to the end of the year. The left last lyft in rising stock prices came after number was hotter than expected, suggesting that the fed would it did. Also had jay powell saying. That is that risk of the market. If we do get higher inflation and lower growth, what happens . I think that could be really hard for the market to take at that point. That is what is being digested. Maybe inflation does upsize. Maybe rent does come down. That is being built in right now. If that disappoints, you could see the other way and. The other wildcard is the debt. Where are we going with the debt . Theres so much debt servicing to do with it. I forget what the number was we heard last week. It was the gross number were going to be spending per month on debt service alone. It takes you up above. When it was 2 , a very different ball game. How does that work and in the rest of the world, where do we go with that if the dollar is going to be that strong, you can have consequences especially in the trade market. In a trap because of Things Holding and that is not cut, thats going to raise interest cuts further, lead to more inflation and there you have to figure out what to do with that. In the face of all of that, the market is ill, more or less going strong. I do not know if you caught ari walds comments , the capital markets, the market overall. There are so many things that surprised people about this market to the upside that you would not be that surprised at this point if it keeps going. If you do but if you get the benefit of maybe just slowing down the Second Derivative of costs coming down, the market can definitely still do that. Its that question that if you dont see that cost coming down and you still see a strong labor market and pricing going up, i think rates dont come down and then you got that factor. The bond vigilantes come back and say hey, we got to move. If it goes even higher than your discount rate start to change. The maggot 7 has become the five 4, i guess, maybe. Tesla. What happens if one of those fab four lose its footing . Can they continue to make headway under the circumstances . I think you can. You have already shortened it down. What happens there depends on those stocks but i think people have started to really start diversification away from them. But they are stair still carrying a huge part of the market. They are still very strong. Apple has rebounded from where it is. I do think that equal weighted index or other opportunities as we have talked about in the past they are. The market might not go higher but you can definitely have stocks that will go up higher as weve seen this year. Lets bring in our friend to the markets in all things related. The one and only billionaire investor and ceo of the omega family office. Leon joins us on the phone. We were having a little technical difficulty. It is always good to have you with us. We appreciate you being here. My pleasure, sorry for the problems. I am the last guy to fix them. I have been on the phone to whoever the provider is right now. Get over here to my house. I noticed in my note that you say very unequivocally that we are heading for a financial crisis. I do not mean to question that at all but i would love to hear. I dont. I am more worried about it than not. What would a crisis . It would collapse your dollar. Look, we have two candidates running for president. One is bad and the other is worse. The arguments of each one, the function of your beliefs and your values. Both of them are putting every nickel that we have. The reason puzzled by President Trump expects to increase the deficit to 2 trillion next year. You have a full employed economy. Those budgets are supposed to be in balance. We are racking up debt like were going out of style and one of these days it will change and we dont know the date. It will change when its least expected. In the 60s, there was guns and crowding out. We have guns and utter. With consequences on the policies that we have. Let me pause if i might for just a second. I want to come back to the question we were just discussing about monthly carrying cost of our debt which is truly amazing but i would not be doing my job and you are free to save my political beliefs are mine alone but you said one candidate is bad and the other is words worse. Which is which . That depends upon your beliefs. I am asking you. My value is theres no way i would vote for donald trump. Why . You learn when you are five years old that you do not make fun of handicapped people. That is not conduct. Its disgraceful conduct. Not worthy of being president of the United States of america. Whether people agree with you or not, i appreciate the clarity of your answer. I really thank you for that. That is my view, my personal view. The other, you have biden who is of the left. I have never seen two candidates running for president that basically have been more criticized people who dont want to vote. I said this a year ago on one of your programs. 2 1 2 million people. 250,000 the right to vote. Washington, jefferson, hamilton, et cetera. As a nation, we have to do better. I think there are an awful lot of people who would agree with that last point. Is this the best that we can do . Lets turn back to that financial issue. What you jump in . A couple of questions. When you look at the market, and i understand your concerns. Where would be some of the opportunities that you would be deploying capital and what are the areas that give you caution and say hey, red flag here. My historic approach has been. I never a stock up without a reason and down without a reason. My job was to separate the facts from the fiction. So apollo is 12 times earnings and doing a great job. And transfers the 7 yield, very good management. 6 1 2 times earnings, the Insurance Market is already tight. All these Technology Stocks existed to have a very long term horizon, okay . I look at the soccer team in the uk. Mr. Radcliffe just bought a quarter of the company at 33 a share. If you read his contract closely, the stock gets 15. People dont have confidence. I dont think you spent to lose money. I find a lot of things i could be doing and i have about 15 energy. I dont expect Energy Prices to runaway on the upside but hat could happen. Plenty of excess capacity. I think the oil is probably bound by 70 or 90. The discount a little bit low of oil price. My research up in canada. Arguably, the smartest guy on. These stocks are nearly 6 . They are generating cash flow. In the case of paramount, they have no debt. Relative to cash flow. The price is pretty good. Let me ask you by commodities. What is your view on copper, steel . Positive, positive. But i am plugging in conventional ways. Lowpriced stock. There can have an asset value of about three times the current price and are doing the right thing. Generating cash flow. Yeah, go ahead. There is a lot of talk about the fed being restrictive. I do not think they are being restrictive. We have a stock market at or near a high. We have tremendous speculation that. Ive got to shut off my iphone but. We are having a little bit of feedback so why dont we leave it there. We appreciate your time and as a resident of, so many appreciate your philanthropy in the medical field. You have done an amazing job with your generosity. We thank you for that. Leon cooperman, always a pleasure to have you with us. One final thought of his dimension, thank you for helping bring that to us. He thinks that even if the fed cut, the yield could rise. Time will tell. Coming up, apple reportedly nearing a deal that chatgpt on the iphone. We will hear everything we learned at open ais event. Power lunch will be right back. Trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. Get an expanding library filled with new online videos, webcasts, articles, courses, and more all crafted just for traders. And with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. Trade brilliantly with schwab. And theyre all coming . Those who are still with us, yes. Grandpa whats this . Your wings. Light em up gentlemen, its a beautiful. Day to fly. Welcome back two power lunch. Open ai announcing its new model ahead of the google event. Nothing specific about a potential deal with apple. Is here with more and are eager to talk about why apple stock might be up 2 . Under a little bit of pressure. What was the big news from the open ai event . A new model called gpt 4 o. It is effectively meaning it can interpret not just we are used to typing to chatgpt, it interprets voice and images. Open ai has been able to do this before, other ais have been able to do this. Show a picture, tell me what is in this picture, things like that. This is a stitching on that together and creating the ability for a more natural conversation. We are so used to asking siri or alexa one question at a time, then we get one answer, this is just like you and i are talking right now, guys, it you can interrupt it, have a more fluid and flowing conversation with it. News the exactly. That is exactly why one reason we could be seeing apple shares up because as bloomberg reported friday evening, those two companies are close to a deal that would bring this technology to the iphone which is very impressive. When i was on the left on friday, we were talking about the New York Times report that said siri is about to get the supercharge. This sounds like something that they would adopt. This might be a or something similar to what we are talking about right now and again, that idea of having an ai assistant with more natural language, you can talk to it just like you would talk to your human instead of talking to a robot and sam altman put out a blog post about this following the event and he sees this as a future. People can build into it, it can learn more data about you and start being proactive and doing things for you on its own. That is really interesting as well. Would this be more proprietary just for apple . Why would android want to do it . How does that work and who would they go to . Working to find out tomorrow because tomorrow is googles developer conference and were accepting a very similar announcement from google with their gemini model to do the exact same thing on an Android Phone. This could be coming to google tomorrow. The other question i ask is where do the chips fit into this . At the end of each open ai event, she thanked. There you go, there is your answer. Thank you everybody for watching and thank you, jensen. There you go. The google event, something involving gemini which is their version . It would be on an Android Phone . It would be everywhere. Gemini, when they announced it last fall, i believe i was on this program. They screwed that up. They fudged the demo and edit it in a way that would fear appear that it was faster than it was. As far as i could tell, in the demo that open ai did, that was in real time. I believe it did. It will i believe it was unscripted and it was working and it worked really well. It messed up a little bit and even made a joke about itself messing up. It was almost creepy. The question on the exam is compare and contrast apple and google. Look. I think they are both going one step ahead and then the other one. At the end of the day, i look at this for the consumer as getting something so good but that phone of yours is a computer. Also, i look at it and i think about the electricity usage. The fact that you and i can be chatting along with this for no reason and the incredible electricity and computation behind everything. That is when i think about my battery life. Maybe its not your phone so much as the cloud. It is running in the cloud. This is the thing when you look at investing. Okay, why do you want to be a Copper Company for data centers . You look at the state of georgia and you look at where all the power is coming from. Bingo. There are many investable as we move across, not just having the phone but all the other products with it. Thank you very much. We will see a little more of you in just a moment. Further ahead, she is ipo could hinge on getting a membership to the National Retail federation. So far, that is not working out. We got the details when we return. Welcome back two power lunch. Ahead of some key inflation numbers. Rick santelli joins us from chicago with more. Tyler, you pick the perfect word. If we look at a chart, lets look at it going back to around the 24th of last month. On the 25th, made their high yield close for the year with 4. 70 . You can see that after that, we really have gone sideways. As a matter of fact, right now as a 10 year, we are on pace for the sixth between the yields of 445 and 449. Most closely associated with the fed may or may not do in the short and with respect to interest rates, lets look at a two week of two. They lasted a 5 handle on the first of the month. They have also gone very. If you look at them on a closing basis, it is the eighth potential closed today between yields of 481 and 487. These are really compact closing yield ranges. Finally, we have all been keeping close tabs on its record which may be in jeopardy with how many consecutive sessions in the green. Maybe one of the big issues was when the two year closed under 5 . You can clearly see the inverse relationship especially once we started to move lower and consolidate on short rates. Kelly, back to you. A coiled spring. I will be excited to see which. Still to come, anatomy of a consumer. That can help tell us which way we are going. All this week, we are testing and asking escorts experts whether we could be giving a eall of health. We will dive into that next. You founded your Kayak Company because you love the ocean not spreadsheets. 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 a slow network is no network for business. Matchin thats why moreiption. 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 two power lunch. Im contest a brewer. U. S. Officials have worked out to over blockade of the gaza today. Video circulated showing a group of people walking the convoy and throwing supplies. You could see them stepping into the ground. They are protesting because israel pledged to allow uninterrupted humanitarian supplies into gaza. At least four people have died in the dozens were trapped after a billboard fell during a rainstorm. 60 people got hurt. That billboard came down on houses at a gas station near a busy road. The forecasters say when has reached as high as 30 miles an hour. Just weeks before the official start of monsoon season. Of the United StatesPostal Service will delay plans to consolidate his processing network. A group of bipartisan senators sent a letter to the general earlier this month urging him to halt the changes until an independent regulator could weigh in on the plan. They are worried about mail delays as the Postal Service makes the switch. Do not get me started on the delays. We got a Christmas Card back six months after the fact. That took a long time. It was like in a bottle, throwing it to the waves. Meantime, all this week, we are looking at the health of the consumer, all the different parts and lets start with their bank accounts. Joining us with a look at consumer balance sheets. We are what we are looking at is the april from echo facts showing credit card delinquencies. They show them taking up to the highest level since may of 2020 but remaining below the pre pandemic averages. A combination of low delinquencies and consumer real estate and Student Loans offset higher auto and bank card delinquencies. All areas are up compared to a year ago. That is the left side of your screen. Auto and bank loans are the ones above the 2019 averages. Lower income households are under Financial Stress but the worst of that hands. As real wages are rising and have titan. The data show that the delinquency rates are highest in 2022 and the 2023 classes better because of the tire standards. Wells fargo tracks delinquencies reported by banks and they are running at about a 20 above 2019. You can see on the right side of your screen. In class and discovery. They do not look as good. The rate of increase has slowed, however. Donald who covers the Consumer Companies tells me the second, delinquency pressures are easing. It is jobs and we are not seeing a lot of corporate layoffs. You can see he pointed to the declining yearoveryear rate of delinquencies at capital one and city. It is true for all the credit card holders. That evidence of the cycle is picking at his belief because the