>> blackrock. increasing assets under management as the market rallies and increases their fees. >> anastasia. >> cybersecurity, a really strong area of growth. 14%, 2024 growth is expected in cybersecurity and it's not back to its all-time high, so i like that. >> goldman sachs, 4.25. you bought it late last week. >> yes. >> i'll see you on "the closing bell." and welcome to "the exchange." good monday morning, everybody. i'm kelly evans. here's what's ahead. boeing grounds the 737 max 9s for inspecs after a piece flew off of the flight. what happens now with the economic ripple effects and j.p. morgan's healthcare conference is under way as we head into deal making with the space and headlines every moment and an exclusive interview with medtronic's ceo who is eager to

dispel the myth for medical devices going forward. and we'll look at how rate cuts will affect retail. yes, there are winners and losers and our analyst conclusions may surprise you. let's start with today's markets, big moves in the nasdaq and quieter in the dow, dom. >> we're moving toward the best levels of the session so far, kelly and it's mixed because there's a tiny speck of red in the dow jones industrial average which is just about flat on the session, down 12 points and we were down earlier on in the session. 37,455, the last rate for the dow and the s&p is at 4731 which is up 35 points and that's up 0.75% and the nasdaq composite up 1.5% to 14,742. that's worth 218 points to the upside. kelly did everyone innon some of the deal making news today, biotech, biopharma and health care because of the j.p. morgan

conference in san francisco and as you also because of merger monday news and therapeutics getting taken over by johnson & johnson, merck and boston scientific in that order and there are gains from 20% to a doubling of the shares because of deal making in biotech, medical services, despite the biotech etf is up 2% and the spdr etf is up one quarter of 1% and boeing shares right now down about -- just about 15 or so points and it's roughly worth 100 points of downside for the dow. if you want to look at it differently the dow is up 100 points and if it wasn't for boeing right now because of what was happening with the 737 9 max model jets looking at the fuselage that brew up and it's 233 and at 75 the last trade, but if you look at the day so far, we're seeing a bit of a roll over here and we're still off the worst levels of the session and we were down nine or

so percent and keep an eye on boeing shares and a big drag on the dow. i'll send things over to you. >> that's where we'll start, dom. thanks, see you in a bit. boeing has given airlines instructions on how to inspect the 737 max jet liners. about 20% of the company's deliveries were of this kind of aircraft according to jefferies although they comprise far less of the future delivery pipeline and let's get over to phil lebeau for the latest. phil? >> kelly, those instructions that you mentioned. the fact that those have been sent to the airlines and they've been approved by the faa, theoretically, we could see some of the grounded max 9s re-enter service maybe tomorrow and maybe the day after that. so that's an indication that the faa and boeing fairly confident in terms of what to look for to make sure that this type of an accident doesn't happen again and i shouldn't say fairly confident and otherwise they won't go back in service and the

focus of the ntsb investigation and the fuselage plug that was ripped off of the alaska airlines plane. that plane had three separate incidents where there were problems with the pressurization and it signaled that through a warning light that they then checked and indicated they should go forward in terms of the airplane continuing to fly and the data recorder analysis will be done in washington later today and tonight over the next couple of days. that should give investigators a fair amount of information, as well. the seats near the max 9 blowout where this took place. they were empty, thank goodness they were empty otherwise this could have been far worse and thank goodness this didn't happen at a higher altitude and there were no serious incidents in the 737 max-9. if you look at shares of boeing they're still down more than 6%. as we mentioned the faa has approved the max inspection process for those planes that are grounded. meanwhile, ceo dave calhoun is out in washington where they

built the max and he'll be holding a town hall tomorrow and united and alaska, united operates 79 max 9 planes and there you see how it moved higher throughout the session especially in the last hour once the inspection process was approved by the faa and also take a look at alaska, almost, almost positive after being down much more earlier in the session. kelly? >> that's interesting what you said, phil. i'm curious about one aspect of this because we've had some criticism about the fact that the data -- the voice -- explain the difference between the data recorder and the black box so to speak. the lat err ter -- >> one records the data in the plane and the calk fit voice recorder which is where you hear the pilots and the crew and that did not record. the cockpit voice recorder. in this case, kelly, you always want to, if you're an investigator, in this case, i doubt that that is of a whole lot of significance because you can hear their interactions with the tower immediately after this

accident took place where they say very calmly, look, we've had a depressurization event. we need to turn around and we need to come in and declare an emergency right away. the data recorder is far more important and that is always going. that's not something. >> it has the voice aspect and it's more comprehensive because some of the commentary making the rounds says that the u.s. should go the way of europe in requiring this 25-hour, you can explain it better than me timeframe so we don't run into this where it auto-deletes. do you think that's an important thing for us to do or does it sound like having this data piece usurps the need for doing that? >> no, i think -- look, the ntsb has been fighting for this for a long time. they have said, why not have these data recorders record for 25 hours instead of where they are right now which i believe they re-record rather short timeframe, and the argument among safety regulators is this is a no brainer.

do it. but like so many other things, kelly, they get caught up in bureaucracy and they don't happen, it just hasn't been approved and i wonder if at some point, in this case, the good news, and i'm not sure the flight voice recorder would tell investigators a whole lot. really, what they want to look at is the fuselage. >> if nothing else, these unfortunate events have a way of shining a light on the need to make updates that you reference and maybe that will be something that comes of this even if it didn't change the conclusions this time around. phil, thank you. our phil lebeau. let's talk about the markets more broadly. boeing is weighing significantly on the dow and the s&p and the nasdaq posting nice gains and my next guest says there's too much optimism and the market is no longer cheap. joining me is the vice chair at ariel investments. charlie, good to see you. welcome. >> good to see you, kelly.

happy new year. >> you know what's been busy today? healthcare deals. every time i turn around there seems to be something else in the space. does that entice you as an investor to draw from it? >> i own a couple and we own dentsal implants and spinal products and they'll be taking over half their business and the stock is up 100%. as an owner, we have small and mid-cap value stocks and m and a tend to be bought rather than doing fine. >> right. >> i would say health care, there's a lot of change and change produces m and a and the roll out of the new weight loss drugs is going to have big implications for lots of people and some companies in pharma who lived off of covid drugs for the last couple of years and they're looking again for drugs and there will be an activity and activity tends to be for small and mid-cap value. >> we've had a ton of activity

and the j.p. morgan conference and we'll talk about that in a bit and i was surprised to see the headline from leslie picker and it's been a record breaking year for activist investment as well. it doesn't feel like it, but there are high-profile examples like disney and so forth. why do you think that is? i would imagine that activision you would favor as a value investor? >> you know, that's a good question, kelly. i have served on some public company boards and activist investors often make a lot of noise, but a lot of the times the things they're recommending are relatively obvious, buy back stock, cut costs and they tend to not have some secret sauce that's all that impressive and activist investors tend to get involved in companies that have had a couple of tough years and so they come on the board and wave their towel around their head for a couple of months and then the stock does better and i don't mean to be dismissive because there are companies that

are maximizing shareholder value, but i would tend to say that activist investors don't always add the value. >> we show it on the screen and talk about it more broadly. >> what about disney? >> and your take on live events and post-pandemic and the value there. do you have a dog in that fight and are you waiting to see what happens? >> full disclosure, our ceo is married to george lucas, and so we do have an absolute dog in this fight. it's a wonderful company whose stock has been halved and their two core franchises in marvel and star wars have had challenges at the box office, but this is a wonderful brand. the theme park business is spectacular. espn has also been a challenge. it's been a lot of things all at once and it's driven the stock down, but this is still a great, great franchise with great leadership. iger is a very good ceo and this company which has faced

challenges will be fine in the long run. >> you're not just saying that? >> not just saying that. >> let me ask you about the markets. the dow just went positive on the session and the s&p and nasdaq are higher. finally, a bit of a change in sentiment. it was a bad start to the year, and i think depending on how today goes, the january indicator would tell us that maybe the whole year we could be lower and perhaps you're right that could be optimism. >> buffett, one of the quotes that i love is you pay a big price for consensus and i do think we went into this year right before christmas and we went from a lot of pessimism and center they we would have a recession to a lot of optimism and there's way too much consensus that there's not going to be a recession and that interest rates are going to drop and that the stock market will do well. >> i happen to generally think that consensus is right, but it always makes me nervous when things are optimistic and things can still go wrong and often for reasons we don't expect and

china's residential collapse and china's possible blockade to taiwan and it can happen and there's too much optimism for my liking. >> maybe, you can defend me a little bit and i was tweeting with the before the rate cuts and the inflation expectations and that, vent risk has passed and we the inflation data, and the main point is if we cut rates inflation will pick back up again. how do you, could you just explain that? >> we've had one the first drops over the last 18 months and after a spectacular increase with the fed flooding the economy with cash they've actually been taking money out of the economy and we've had a decline in the amount of cash in the economy and that is

producing a return to more normal rates and inflation. we're not going to get down to 2%, but i think we'll get under three and that gives us a much more level normal rate of inflation and one of the most important laws in finance is that the rate -- the real rate of return, the interest rate above inflation is relatively constant at 1 to 1.5%. so when you have, let's call it, a 2.5% inflation rate you really should only have about a 4% risk-free rate. so interest rates were too high. they were ridiculously low at zero and now they've come down to about where they should be and if inflation keeps coming down, the fed should drop interest rates, and i think that's the most likely path. >> it sounds reasonable. it's not crazy. it doesn't mean inflation will suddenly pick back up again. if anything, it could be better for bond yields and a better economy. charlie, i hope to pick it back

up. joining us from ariel investments. check out shares of novartis and cyto kinnetics as "the wall street journal" reports that novartis is nearing a deal to buy cytokinetics and no details yet on the potential price and cyt shares are popping 16% and super busy on this front lately. speaking of which, one of the biggest health care, vents of the year is taking place in california. j.p. morgan is coming under debate over the impact of those new weight loss drugs and they can lessen demand for hip and knee replacements going forward ahead for the medical device makers and share of medtronic is coming off a three-year string of declines. how is the company responding to all of these challenges? let's get out to cnbc's very own jim cramer. he's at the j.p. morgan healthcare company with medtronics ceo. jim, over to you.

>> oh, thank you so much, kelly. he'll go right to the issue. there may not be nearly as much impact for diabetes and cardiovascular as people are thinking. >> right. first of all, thanks for having me, jim. it's great to be here. on the topic, first, these are important new drugs for patients and having a big impact, but when it comes to the other disease states and devices we've done epidemiology. it will not affect our growth rates and our addressable market near-term or long term. >> it is true also you talk about the gold standard for bariatric surgery for people who are obese. >> the areas that people question us about is diabetes and bariatric surgery is one of those.

it's a small portion of our business, a small slowdown, but over time what we're hearing from bariatric surgeons is they're increasing the funnel as it brings very obese patients to make them less obese and safer for surgery. >> the new medtronic which is so many things. one of the biggest sources of the fatality ask death is hypertension. people are unaware even though you get your blood pressure checked when you dogo to the doctor. you have the best new thing that might be able to solve this incredible disease. >> wooe very excited about this. it's been 15 years in the making and a huge investment and we got fda approval for our simplicity system which basically is a procedural-based solution that lowers patients' hypertension and lowers it. we have data going out ten

years. it doesn't reverse and we've had no safety issues and we're seeing consistently lower blood pressure about 10 millimeters in mercury and even a small three ore four drop is a 40% decrease in stroke and heart attack. this is one of the biggest things the company has ever done. >> you made an acquisition, but the fact is it's got a novel mechanism and that's what i think, it's not a pill, one time only. >> one-time only, day procedure. physicians feel comfortable doing this and the patients we've talked to, they, you know, they walk out of the hospital and they don't feel any pain. >> fantastic. you also are a company that frankly had a good course, but now you're doing something almost weekly today. your neurostimulator and people are wondering what can be done for parkinson's? >> right. >> what can be done for tremors? >> right.

for deep brain stimulation has been around for a while. we invented it 20-some years ago and what we're trying to do now is make this more of a mainstream therapy. the brain, as you know, jim, is still a white space and our latest system and the system that got approved today is just another version of our system that has sensing in it. so today we have a commercially available product and it works magic for these patients and in addition to that therapeutic effect, we are now recording signals in the brain and we will learn so much about the brain. so even just in late 2023 and in september or so, nature which is a very big medical journal in our space with the journal of medicine is using our technology, this one particular physician identified a biomarket for depression. i just got off the phone over the holiday with an east coast university and they're telling me they found a biomarker for addiction all using our system that is recording signals in the brain which, jim, is very hard

to do. it's taken us a decade to figure this out and we're the only ones who have it. >> you're right. you're doing something right now with nvidia. >> right. >> you are doing ai with nvidia and it is very important for patients. >> yeah, so, look, in today's world, i think the amount of data you have will be your currency for innovation and there's biomedical engineering and the more data we have the more we can innovate and we've put in basically edge computers and inside suites and inside the surgery suites to record everything that's going on there and provide in the moment realtime benefits like in the colonoscopy business and real time processing right on the edge to identify polyps. what we found in colonoscopies, a very mature segment about 50% of polyps were being missed and no one was finding that and then ai is finding it and in surgical

suites as we are trying to democratize surgery we are building these algorithms using these computers and we'll deliver these to the o.r., think about driver assist in the o.r. we're not going to be replacing surgeons any time soon, but we'll make them better and surgeons using ai technology will be replacing surgeons who don't. >> millions of people are impacted by these things. millions. >> one last thing, pacemakers. you have a new one and we benefit from the smaller pacemaker. >> yeah. this is it. this is the micropace maker. we first launched this in 2015. it covered maybe 15% of the traditional pacing indications and we just launched some new versions and you saw the approval last week. now we're up to about half and it's really, jim, what this has done has helped us gain market share and more importantly it's growing the market.

it's a $3.5, $4 billion business because our innovation has lowered the threshold for patients to get pace. so we disrupted ourselves and really rejuvenated this market. >> it's great to hear med tron sick doing all of these really exciting things and you reinvented the company and i think this is a fantastic thing. this is geoff martha head of medtronic. >> every time i turn around there's more deal making and do you think it's just because of the conference or business in general thatthere's a lot going on? >> this is a place where people get a lot of deals done and there are people that get deals done and we don't know it for several weeks or month, but everyone is together. i think i'll go do a couple of deals myself on that. >> just give us the exclusive. no. jim, we appreciate it as always. and medtronics, geoff martha. coming up, we have a deal to avoid a shutdown next friday assuming it can get passed and

signed into law. whether we can expect significant rate cuts from washington and rate cuts, have you ever thought how they could impact retailers and two names that you might want to avoid as we head to break, here's a glance at the markets. the dow ever so slightly and briefly turned positive while the s&p and the nasdaq are in much firmer ground. "the exchange" is back after this. ♪ ♪ this is "the ehae"n xcng o cnbc. ! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) ♪ opportunity is using data to create

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welcome back to "the exchange." top congressional lead verse reached a government spending deal for the moment. emily wilkins is in washington with the deal and likely hood of passage. emily? >> yeah. shutdown fears eased over the weekend after leaders struck a deal yesterday. the overall spending number for the current fiscal year. it's $1.6 trillion and reflections the agreement that congress and the white house reached last year over the debt limit and the side deal to increase non-defense spending and speaker mike johnson was able to have cuts of previously allocated funding and an additional $10 billion in cuts for the irs this year bringing total cuts for the agency to 20 billion, but while johnson got democrats to agree to the cuts, it is not enough for hard line conservatives in his party. the house freedom caucus called the bill a, quote, total failure

for not doing more to reduce spending, johnson acknowledged that the plan would likely not satisfy everyone, but vowed to fight to attack additional conservative priorities to the bill. johnson didn't specify which priorities he pushed for, but measures house republicans passed would fail in a democratic controlled senate and that would make any one of the additions to the spending bills difficult and now that the overall spending is agreed to. the house and senate have a lot of work to do. they have to reconcile $120 billion in businesses and how quickly it moves will determine whether or not the government goes into a partial shutdown on january 20th. kelly? >> we'll take it as it is for the time being, emily, thanks. while everyone says election years are generally good for the market my next guest says the path could be rocky and whether it can be a devicive versus

unified market. joining me is derek, welcome. what surprised you most as you dug through the data here? >> yeah, i think it's what the big picture call side true, it's positive for equities in the election years, and i think what's more interesting is in a few months the market comes back and puts in the price and that is usually unbound, actually. in a sense, the interesting thing is that the elections these days behave like the eing market actions and it's taken on after ward and that's an interesting pattern. >> let me make sure before you move on that people caught that. the interesting thing is that the u.s. elections are behaving like emerging market elections and sometimes people might agree with you in more ways than one. >> exactly, but it has been the case for a while and not just in

2016. it is a good year for the s&p where technically in the end of the summer markets get choppy and that choppiness gets unbound once the election happens. >> what are the biggest trades that people can write down now and use before the end of the year. some are quirky and you have some other sectors and the dollar is one clear one and there are four different outcomes. listen, i'm not a political expert, but as far as i can see, we can have unified republican, unified democrat and split gop president and democratic public and vice versa and all of this on the table and what are the clearest ones that for you have obvious trades people can put on? >> the unified democrats are least likely and two out of the three potential outcomes actually divided government which is the best market and it's in the big picture it's broad and positive, but if you

go one level below that, it rhymes with 2016, and some things will be very similar to those that are different. the things that are similar is that we do see the strength again and that is partially because we see the risk of more fiscal spending and we see the risk of tariffs and they're bullish and i don't think it will be as bad where the mexican peso is and was in 2016, but broadly speaking there is bullishness. we also in 2016 saw weaker treasurys. this time, i think, that it might happen and it will be cutting at the time, and probably with the election rolls around and it's not outright and it's a steeper curve, and then if you go on the sector level and the clear trades are usually that republicans favor big oil energy and in 2016, it was very

strong for financials and industrials and the democrats, of course, and the health care will perform the best and on the sector level we can choose a little bit what your potential outcome is and in terms of risk the market would trade into the election and the risk would be there and therefore we could see industrials and financials in health care. >> a quick question, dirk, let me turn everything on its head and now that you look at playbooks for the election cycles, does the trading data yet tell you that the market is anticipating one certain outcome here? >> it is very early, but a lot of the patterns i described start to break out a few months before the election and the programs, so i think at this stage, the market, i think the biggest figure for the market is a soft landing and that's a bigger call that you would have,

and i think by the end of the summer, the election will be front and center and you'll be able to draw more from what the market is. >> we will check back in in a few months' time. dirk, thank you very much. we appreciate it. >> dirk willer. sellers are off to the worst start since 1982 after logging declines, we are looking to break that streak today, finally. could that change if they emerge as a bigger player in ai? we'll talk about that ahead, plus an under the radar earnings name up 20% in a month, but could what's happening at the u.s. southern border derail its momentum? the ceo joins us ahead. i'll call this a mystery chart. tweet me if you can guess it. we're back after this. solar stocks are up 20% with the additional hour in the day. [ clocks ticking ] i'm ruined. with the extra hour i'm thinking companywide power nap.

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welcome back. the dow briefly erased a 200-point drop as boeing shares are off of the session lows and we're not entirely in the clear. let's head over to dom chu with the movers. >> the outperformance is happening and that's microsoft which is up north of a percent on the day getting help from analysts at j.p. morgan and bernstein. they both tagged the software services dow computing and artificial intelligence giant as a top pick for this year. both have tagged longer term growth potential for ai-related applications as a reason for that bullishness. those shares up 1% and check out shares of crowdstrike helped in part by rbc capital who named the cybersecurity and cloud services company as a top pick, as well. they see amongst other things longer term spending on outlooks for companies like cybersecurity that could help growth in revenues and profit margins, as

well and those shares up 5.5% and we'll cap things off with doordash with just about 4% and the e-commerce platform is a top pick by analysts at jefferies and they have upped that stock from buy to hold and they've raised the price target from $130 to $90 and they think the stock is only being given credit for its domestic restaurant delivery business. they're not giving any value to its international and other verticals. so these doordash shares up 4%, kelly, some of the movers and i'll send things back over to you. >> thank you very much. let's get to tyler matheson for the cnbc news update. president biden is in south carolina today for his re-election campaign. he's speaking at the historic mother emanuel church in charleston where his speech continues the message that the nation is in the fight for its soul in the upcoming election. the location of the speech links biden's message to that of the church's history, the site of a

horrific hate crime where nine worshippers were massacred by white is up semicysts? 2015. phin the speech he consider the practice a, quote, commercialization of pregnancy that exploits the materiel needs of the mother. surrogacy is either illegal or restricted in much of europe and several states in the u.s. have banned the practice, as well. after delays due to the writers strike in 2023, "stranger things" has officially started production for its fifth and final season. while there are no details yet of a possible release date, additional projects are in the works in "the stranger things" universe including a play in london's west end. kelly, back to you. >> tyler, thank you very much. shares of birkenstock hitting an all-time high after the fed's dovish pivot and the

shares have underperformed and one analyst says investors are sleeping on the rate cut baeneft for birk and he'll tell us on "the exchange." stay with us. back in hay moment.

welcome back to "the exchange." consumers are getting more positive about the economy with new york fed inflation expectations falling to their

low of the since january 2021 and after the fed signaled at its last meeting that rate cuts could be on the table this year the stocks are off to the races, but my next guest says the fed won't lift all boats especially in retail could hurt earnings for the majority of his coverage. joining me now is simeon sealingel with bmo capital markets. simeon, if only everyone would do a note like this. i love hearing about the nuances in terms of the top-level rate cuts we talk about and the impact on your coverage universe. what jumps out? >> hi, kelly. good to see you. everyone hears rate cuts and they think companies and people have more money in their wallets and therefore everything is great. the problem is if you think about it on a corporate perspective, the rate cuts help those who need money and a lot of the retailers are cash rich and so what we look for is growth businesses that need money and growth stocks that are valued accordingly, the companies that are heavily in debt stand to benefit, but oddly enough, the healthiest

businesses and the ones that have built up their balance sheets and have watched the personablity to watch the savings on cash go up, those will see pressure. so what we found is birkenstock, lifetime and planet business they stand to benefit tremendously across different angles and they'll be the ones to benefit from a rate cut. >> before you go from there, and most people's minds wouldn't go, rate cuts, birkenstocks, why does that company stand out to you as a beneficiary? >> the way we thought about it is we created three buckets and we looked for businesses that were growing faster. growing faster meets the cost of capital and going down will help that growth, but also what a multiple is, and a forward multiple is on growth is what that discount and what are the present values today? so when i lowered my interest rate and the cash is worth more now. it's very different than

companies that have multiples that are not based on future value. they're just based on consistency, and so birkenstock is both a growth stock and a growth company like others, and the reality is having debt in the scenario helps. not because having debt is great because having debt is expensive and so when it was variable and we see a lot of companies see the funding cost continue to rise. >> exactly. it's going to come down and that's a relief. >> you also put lifetime fitness in the category. is that because it's capital intensive? >> so the third bucket which is lazy and the miscellaneous bucket is who is levered financing and so a company like life time which is works on potential lease facts, and company like planet business that has an army of franchisees that need to tap for units is another bucket. it's counter intightive because it's the businesses that otherwise were hurt. for businesses that theoretically look less healthy and otherwise now look --

>> i think that makes sense on some level. you were sort of saying, look, as we go through this there might be a lot of companies that are adversely affected. who are they and why? >> yeah. so the similar falling to the counterintuitive part because not to knock the companies and that's what this is. this note was a -- let's isolate it with a very specific fact and let's look at the health of the businesses because what happened in december is they were not tied to numbers. they were tied to the rate conversation. >> we tried to isolate stock movements that went too far versus ones that didn't go far enough. the gap, ross stores and ralph lauren saw tremendous lifts from that cash yield. you watched the interest expense turn to income. and so if that were to diminish

thevalue that you would get by saving on the cost borrowing, i want to be clear it doesn't impact the ebidta or the fundamentals of the business, but the businesses that trade on profitability and they trade on eps have gotten that lift and i think they've done it quietly, and i don't think people appreciate how many earnings have been boosteded and we see low single digit to low double digit from interest. it's a big lift. >> that's really interesting. so basically, and there's a lot of the public out there who sort of has enjoyed, yes. they don't want inflation, but they've been making money on savings in a way that they haven't been previously and that's true for corporate america and all of a sudden that's going to go away. >> listen, it's not all of a sudden going to go away, but it's all about the incremental and the derivative. what was fun in this report was we created a standard model and we just matched stock movements in decembers very us this who we

think it will benefit versus not because, listen, i'm not going to pretend all whether and when and far far interest rates will go, but i think you and i will be talking about this over the year. >> yeah. >> where we'll just have to figure out did things get better or worse for these companies because they traded on that second derivative on the way up. >> i think there's more granularity on the note and a microcosm on how they could be affect both positive and negative. good to see you. >> simeon segal, apple is by far the biggest drain and up 69 points and broadcom the second biggest at 30 and it's bullish on apple and expecting an earnings beat and seeing positive news flow around the vision pro headset like me, llwi help keep its shares a float and how much that can provide? that's next.

let's partner for. i'm so glad we did this. edward jones

only at vanguard you're more than just an investor you're an owner. that means your priorities are ours too. our retirement tools and advice can help you leave a legacy for the ones you love. that's the value of ownership. welcome back. shares of apple are off to their worst start since 1982. critics say the company's lack of a clear ai business plan is partly to blame, but morgan stanley today saying they do

have a stealth ai strategy. deidre bosa joins us for today's tech check. >> that's right. apple hasn't had the ai halo that others like microsoft and google and amazon have been able to rely on when the core business isn't performing the way it's supposed to necessarily, but tim cook's strategy, it has focused on integrating ai within its ecosystem of devices and services. so instead of a gpt moment apple sees ai that is embedded into your device rather than requiring a change of habits like intentionally going to a chatgpt or bot. instead of a chat bot you can see a generative ai-enabled iphonor apple system and morgan stanley noted this morning that kelly referred to that even more important than the current fundamentals we're covering, 2024 is the year when an will's ai opportunity comes to from you igsz and cata liezes the cycle. let me explain this a little bit

because it's a different strategy. edge computing is the idea that large language models will be run on computers and any other devices like apple watch instead of the cloud. apple has an install base of more than 2 billion. so that's a lot of devices that it can work on. >> it allows developers to model on apple's powerful in- house socon. they mark it at this strategy, but it is there and a lot of folks are talking about this in silicon valley.>> if we can never call apple a dark course. thank you very much. coming up, two texas railroad crossings as migrants converged at the border. and greenbrier is tagging future shutdowns as a risk. shares are up 10%.

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welcome back to the exchange. shares of greenbrier, the rail company, are up 6%. while the largest railcar manufacturer in the country remain positive on the long-term strategy, management is flagging short- term risks. joining me now is lorie tekorius, who is the ceo. welcome. >> thank you. happy new year.>> happy new year. the biggest manufacture of railcars and has been a tumultuous period between the pandemic, even now some of the interferences we are facing in terms of getting shipments around the world. what is the biggest segment of your business?>> the biggest segment is our manufacturing operation. and you are right. we have three manufacturing locations in mexico and several in the united states. but also in europe and in poland

and romania as well as brazil.>> talk a little bit about what you are experiencing at a time when we know that the mac should be in -- >> that is a really great question. there are so many different layers to this. part of the reason we've had difficulty with manufacturing is being able to get a good, sustainable workforce. we are willing to train people to do work, but it is hard work. this is to your point at the opening that the issues at the border crossing are top of mind for me as well as others in the rail industry. >> explain what you are experiencing these days.>> thankfully, greenbrier has not had significant issues yet in getting equipment out of mexico and into the u.s. market. but we are a big customer of the railroads. we use the railroad to move our

inventory into mexico in order to build railcars. so having these unannounced, indeterminate closures of crossings is a critical issue. it is not just about my business . it is about the overall economy because there is so much commerce that moves across that border, mexico is our number one trade partner. to have the borders closed is crazy. think about it when you are driving down the highway and somebody up ahead throws their on the brakes and it backs up traffic. it does not start flowing when they take the foot off the brake. it takes time when they have these closures to get things moving. >> we spoke with the industry trade group a week or two ago about the situation. he was obviously frustrated. it sounds like we are still at an impasse. have you gotten guidance?

>> we continue to talk to policymakers. we work with customers, our competitors, trying to get that. they are focused on how they deal with the migration issue. i really do hope that the policymakers in d.c. can find a way to set aside their differences and think about how we can solve this problem. there are people down there who want to come into our country to have a better life and work hard. how do we sort through that as opposed to being a political issue. >> why do you think shares have held up? >> i would say that shares are up because the leadership team has been doing what we need to be doing. we've been focused on our footprint where we have investments in our facilities.

we have been thinking about how we can make investments that improve our manufacturing margins and we are better stewards of our shareholders money. >> i guess hoping that the short-term problems get sorted out. please keep us posted.>> thank you very much. that does it for the exchange. coming up, tyler is getting ready and i will join him on the other side of this break.

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