going back to the airlines, they have the best pricing. >> franko-nevada. had a big tumble due to a mine in panama. we think it comes back. >> home depot. i like the housing theme for 2024. >> so dow is still negative. we'll see what progresses. i'll see you on "closing bell." "the exchange" is now. welcome to "the exchange." i'm kelly evans. here's what's ahead this hour. stocks are struggling to ascend yesterday's gains, but the ten-year yield is back above 4%. the market's early stumble has some rethinking their playbooks, and consumer electronics show cex is underway. the ceo making a keynote speech last night, a position bill gates has held for 12 years. he joins us live from vegas.

plus, seven ceos in 11 years. a 75% drop in market cap since 2021, and gen-z is over it. just a few of the issues plaguing matchgroup, elliott management disclosing a billion dollar stake. could the activist turn things around? that's later on. let's start with dom chu on the markets. the best you can say is we're off the lows. >> not just off the lows, but we are at session highs right now. it's still red on the screen, the dow down about half of 1%, 165 points, 37,517. the s&p 500 is down about two points, relatively flat on the session. again, at the highs of the session, you're talking 4761, so right about there. at the lows, we were at 4730 in the s&p 500. so significantly, about 30 handles off the low on the s&p. so, again, flat on the session, slightly red. but it's still the best level of

the day. the nasdaq up one quarter of 1% to 36 points to the upside, 14,880 the last trade there. two key parts of the market are getting some attention. big technology for sure. specifically semiconductors on the heels of samsung issuing that operating profit warning, down 35%. that was at one point really negative sentiment wise for the sector overall. names on semiconductors still down. and micron, which makes that dynamic access memory down about 1%, as well. but if you look beyond there, qualcomm is up 1.5%. advanced microup 2.5%. and nvidia up 3%. and i get to put a big star here, because it is, again, at record highs for nvidia shares. then, of course, it's still the jpmorgan health care conference out in san francisco. our jim cramer has been out there interviewing those big ceos. names like merck and boston

scientific, all up between a quarter and 1%. and all of these guys get stars, because each of these stocks hit a record high in trading today. so there's a lot of investor interest in that health care sector, and all of the m&a news emanating. back over to you. >> dom, thank you. does the market's recent weakness provide an opportunity to get people invested? my next guest joins me now. so your decisions, tom, probably touch on what's going on with a lot of people's money. good to have you. welcome. >> thanks for having me, kelly. >> what was you say this boils down to, trying to cox people out of cash still? >> our community, which is one of the biggest pools of assets in the world, is overweight cash. so the rally that we saw in november and december has created a challenge for people to get reinvested.

we're calling it the everything rally. after the everything rally, what do you do? in november and december, you saw stocks and bonds outperform yen generally what you would have expected the s&p 500 to give you in an average year. so it is a challenge to get people over the hurdle. but i think there's opportunities in stocks and bonds to get there. what is are the best ways to do so, do you think, as you look around the universe? >> relative to what's in the price, at the broad, high level, i think the market has priced in a soft landing almost perfectly. if we were sitting here six months ago, what should the market price for fed cuts in a soft landing? the average person would say 200 basis points over a year, year and a half. that's what the market has right now. so i think the bond market, the easiest thing to say, rate cuts are coming and that cash yield will go down. i can move out the curve just a little bit and lock in a 5% yield. that's the easiest trade to make. but what we really want our

clients to do is be ready for the next bull market in equities. yes, the s&p 500 is trading at pe multiples higher than historical averages, but small and mid-cap stocks are trading cheap. that's where earnings growth should accelerate the most with a better economic backdrop for 2024. >> that's a really interesting point. but a lot of people on the sidelines will think, do i hold my nose and just buy the s&p 500, even though it's gotten away from me, because it's typically the outperformer? or do i go for something that has more value but might lag over time? my sense is that small and mid caps do, but maybe i'm wrong about that. >> the historical backdrop is, small to mid-cap stocks tend to be the most sensitive to growth. l interest rates have been the dominant driver, and as that comes down, tech stocks snap

back quickly. as growth accelerates or gets repositioned for higher expected earnings next year, we should see small and mid caps outperform tactically. the thing that's important for my clients, they're underweight this sector. yes, i agree, getting data is an easier opportunity set, but if we do get that firm, soft landing which we expect, small and mid caps should perform better. >> interesting. i want to talk to you about bonds, as well. i'll clear my throat and rick santelli can tellus what happened with the three-year auction. >> this is the first of 110 million of coupon supply in the form of three-year notes. 52 billion of them hitting the street. i gave it a grade of b minus. the yield, 4.105%. the primary reason for the decent grade is because pricing

on eastern was right around 411.5. so lower yield is a higher price, if you are the selling like the u.s. treasury, higher price is a good thing. so pricing was a significant uptick. if you look at all the other metrics, the bid to cover was just a smidge lighter. the indirect and the direct were very much in opposite directions. you had the best since august at 65.3 on indirect. those are very important for foreign buyers. the direct buyers was a little on the light side. the lightest since august. and the dealers, they took about 1% more than they normally do. so the fact that it was on the screws and it did not tail gives this auction a nice start. tomorrow, of course, we'll have tens followed by 30s. 110 billion in supply total. and just as a reminder, it's not all done around the globe that's finding any issues, finding

investors to take it in. we had 20 billion of 20 years in the uk today. and that auction was historically strong. so there is a demand, especially in europe, for some of these fixed income debt securities. the real problem is going to be the ongoing nature of all the supply that will be out there headed by sovereign debt. back to you. >> rick, thank you very much. let me turn back to tom here for just a remark. tom, we talked about you trying to get people out of cash and not just into stocks but even into bonds. the ten year is about 4.01, so not a major response, but you could argue the stickiness is maybe aheadwind as we get into the year here. what is your pitch to clients? >> i think the long end of the curve is offering you carry-like returns. so buying a treasury at 4%, you should get 4% returns there. after the everything rally, i think that's a challenge for fixed income. our own framework, in the middle of october, a ten-year treasury

at 5% didn't make a lot of sense relative to the growth potential of america and where we thought the fed was going. so we can still buy those rates, but on a tactical basis, the front end looks more attractive. to come back to what rick was saying, seeing solid traction at a three-year auction is showing you that you can step out of cash and field comfortable if these yoelds are going to be a carry trade for them. >> absolutely. we'll see if it goes over a little better in the weeks to come. tom, thanks for your time today. let's turn now to the broader economy where wall street saw friday's better than expected jobs report as a sign of strength. that soft lndzi inglanding we w talking about. but there is an under the radar warning sign. steve liesman has a closer look. >> the december jobs report was hailed as strong and it capped a year with payrolls rose by 2.7

million. consistent downward revisions raise questions about whether there is broader economic weakness under the hood of this economy here. the bls revised down job growth in 10 of the 11 months in 2023 by 42,000 per month. we don't know about all the revisions to november and december. the question is, why are the data being revised and what does it mean for the u.s. economy? i talked to two top bls economists from the payroll division. they explained to me revisions are mostly but not entirely in this past year have come from problems with seasonable adjustments, impacted by large swings in the jobs numbers from the paemndemic and after it. but consistent revisions can occur during transitions. the last time we had a consistent year of downward revisions, 2008 when there was a recession and that year 11 of 12, or call it 92% of the months

were revised down compared to 91% in '23. you can see the average is slightly upward revisions, at least somewhat. so the total revisions were only half as large in 2008 as -- or now in '23 as there were in 2008. that year, job declines remained more negative. now they're being made less positive. so it's not as dire. up to a point, this weakness is probably good for a fed trying to loosen up the labor market. but it's a reminder that the fed and investors, that there's risk on both the inflation and unemployment side of the mandate. >> steve, stay with us. my next guest was on the bullish side last year in the face of recession concerns, and remains upbeat now on the economy. he says the job gains are driven by three sectors, health care, leisure and hospitality, and state and local government. they generated an afternoon of 132,000 jobs per month, compared

with just 33 k for other sectors. he says these three sectors remain understaffed and will continue to hire robustly. dean mackie is here. dean, good to see you. how much longer do you think they need to go to fully staff up? >> hi, kelly. i think these sectors have a long way to go. if we look at health care, for example, it's grown now a little more than half as past post covid as it had precovid. health care should be growing in size given the aging of the population. so we think that will be adding significantly in the coming years. in addition, leisure and h hospitality and state and local government are below precovid levels of employment. all indications are that they are understaffed still and will be hiring throughout this year. >> what would you compare this cycle with, dean, does it have any precursors?

>> i think that's what we're seeing here is the long lag still from the pandemic. we haven't really experienced anything like this in our working lifetimes. and i think that's why many people are looking at this as acyclical sectors, but these are the most cyclical sectors coming out of the pandemic. that's why they will be powering job growth going forward. >> steve, what do you think? >> well, i will say that the fact that job growth is so concentrated is one of the items in the list of those that think the job market is weakening, that is not more broad based essentially. that's something we keep hearing a lot of from different folks that is just these sectors. i do think there is more to go. i will say that when i talked with the bls economists, i asked why don't you just x out the effects of the pandemic? they said, well, can you guarantee to me that the job market is going back to the way

it was before the pandemic? i think what dean is saying is smart and it makes sense. when i look at having reached the level of the pandemic in employment, that doesn't take account for the growth that's happened to the economy. no doubt we need more health care people in all aspects of health care. we need more in education. but there's just also no guarantee that we're going back to the economy we had previously. so you have to make room for changes in the economy that are going to be lasting from the pandemic. >> dean, if i could jump in and make this a question to you, it would be about the traditionally more cyclical sectors like manufacturing where we have seen the negative isms. how does that piece into all of this? >> certainly manufacturing job growth has slowed down. that's what the fed rate hikes was trying to slow down the cyclical sectors. what that's accomplished is we have gone from job growth of 700,000 per month down to 165,000 per month.

that's a lot more sustainable. that's what we have seen over the last three months. the unemployment rate is still 3.7%. so it's not as though the slowdown in job growth has caused the unemployment rate to shoot upward, rather this has allowed it to stabilize at a low level. >> are we going to look back and say well, the three sectors you're citing for job growth are often the last place that a downturn shows up. is there just a lag effect here? >> i don't think so. i think that's what is different about this cycle. it is the pandemic cycle. these sectors are still very depressed relative to prepandemic readings. i don't think they need to be as depressed as they are. health care, leisure and hospitality, those should be growing with the economy. so i think that these sectors have had trouble staffing up. and most firms in these sectors are understaffed. that's what we're seeing in the health care sector about is understaffing and joefoverwork

employees. >> quick last word, steve? >> kelly, we have talked about this stacking effect. the idea that you could go into a recession if all of these industries were negative at once. one of the things that has been good about the process is, we've had already some changes and restructuring in certain sectors already. so the idea that these three sectors are pulling us through this period when other sectors are adjusting, that is a good thing for the economy. and then you may be on the backside of things like transportation and warehousing and other sectors that have -- in the down cycle from the pandemic. they could be coming back at a time when the economy will need that strength. >> you've been early in identifying that, steve. maybe we can ride it out here. thank you both. we appreciate your time today. let's turn now to one place is often a barometer of overall job growth in the economy, small businesses. and they are getting slightly

less pessimistic on things, although they see two major issues threatening to tip the country into a recession by year end. kate rogers has the details. >> reporter: the national federation of independent business out with the monthly read on optimism for the month of december increasing slightly, 1.3 points to 91.9. that is among the highest readings of the year, but also below the group's 50-year average of 98. the top issues for main street this month, inflation, quality of labor and taxes. inflation moving back into the top spot for december ahead of labor issues, but those remain sticky. overall views on the economy are still broadly pessimistic at the moment, though slightly improved, writing that 2024 will be a slower year -- can

>> high interest rates, kelly, are also of concern. in a separate credit survey, the nfib found those impacting decisions around financing and 80% said high rates were their biggest issue accessing capital. the average rate paid on short-term loans was 9.8% in december, up from 7.6% one year ago in january of 2023. although the cap x number for small businesses was slightly higher in december. >> i don't know if we can show that chart one more time, the rates they're paying, it's exactly what the bears said would happen. small businesses are going to be paying 9% interest and not make a go of it, but they are muddling there. are there any sectors struggling here? >> the two big ones, construction was one of the areas that the nifb called out, as well as transportation that are struggling to find workers. agriculture was fairing a bit

better and finance was doing okay. >> interesting. kate, thank you. coming up, the industrial metaverse. sony and seaman's unveiling a new mixed reality headset. and a contrast to apple's vision pro. the ceo joins us live next to discuss that. and one company is laurial. you can't spell hair or nails without ai. and the company is using it to develop everything from lipstick printers to skin diagnostic tools. their ceo will join us. here is a glance at markets. dow is down 180 points, half a percent. s&p down four, and the nasdaq is up a quarter percent. the ten-year yield 4.013. back after this. ♪ (captivating music) ♪

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welcome back to "the exchange." it's not just apple getting into the headset game. german tech giant siemens announcing they'll brick their software to sony. let's dive further into this with their ceo. rowland, a pleasure to have you join us here. welcome. >> hi, kelly. thanks for having me.

>> are we right to understand this as an industrial product, not a consumer one? how would you explain everything happening here? >> no, that's true. this is made for the creators to immerse into what we call industrial metaverse. so you have virtual representation. we call it a digital twin of any kind of product you have. this headset, creators can immerse themselves and deal with the product as if you would have it in your real hands as a real product. >> talk to us about siemen's technology. you and sony have been active. you talked about having partnerships with nvidia. what is the vision as to what the product and category and innovation will look like in two, three years time? >> so the idea behind this is basically having the industrial metaverse and it's really a

physics based twin, so we don't -- it's physics behind it, what happens when you shake it, heat it, each load software on the product. and then you want to have it immersive. that means you want to get the feeling that you're really literally into -- in the metaverse and the experience. and you optimize it, you optimize your manufacturing lines. even the people on the shop floor. your product can be redesigned in no time. supercharged by ai, so that means all the experience which happened in the past from the data to your designs will be rolling into that one. so you optimize your product and it saves you money and time, drives your productivity up, and saves resources and makes your product more recyclable. so nvidia, they give us their platform in order to really make

a fully realistic image. we have aws, we work with them on their cloud technology and also on their ai platform for a co-pilot. and bring that together to solve our problems. that's what we do. >> so the headset has had a stop and start track record. a lot of people tried it, mostly consumer facing. it has some application, big in gaming. is this really the year the headset becomes a thing? >> yeah. you know, this headset is a little special. you have tools in your hand where you can really interact with the parts, which you have in the virtual world. change them, design them, so it's really geared for the professional consumers, which are creators, engineers, mechanical engineers. and this headset, in combination with a software that we are

offering that cuts off the software that makes a big difference and can boost r productivity and design. so it's different for gaming. >> understood. i don't want to make it sound like the headset is the only thing going on here. you have an intelligent habitat solutions, and different kinds of innovative products. just talk us through these, what is the most important thing on your lineup for the next six, 12, 18 months? >> yeah. so what we talked about yesterday is also launching a virtual pls. programmable logic controller. these are the mini brains controlling the manufacturing lines. these are really industrial products with industrial coding language. we do what we have experienced already in the i.t. world, that you have virtualization. that means you detach these plcs, these mini brains from the line, bring it somewhere in the central stack, and you can even

fulfill realtime requirements, control human manufacturing line out of a room basically, out of a private cloud, if you want. so that's one thing. the other is we're teaming up with aws on enriching our low codes programming platform with ai. so you can easily now put ai functionality into your application. that is another area which we are working on, and to bring that together makes really the industrialization in the united states, if a lot of companies rolling in now, so we want them to really have a higher produ productivity. if you go all in this digitalization, it can be really competitive in a high labor market. at the same time, you have a labor shortage, and you can run a manufacturing line with less labor and still be highly

productive. >> my last question is about siemen's home country. just today we had these headlines how china has surpassed germany as an auto exporter. even the trains are running late these days, as i understand it. do you see siemen's and all of the investments you're making at being at the forefront of a renaissance? >> so the point is that -- i mean, maybe people talking germany a little bit down, so we have very strong small and medium-sized companies that are champions. also the automotive industry is strong. we do have problems on infrastructure. we have been basically running where we have to put investment there is, and they are working on it. this goes back to the problems with the trains. so we have to do our homework. and the homework is basically banking on what made germany and

the german industries strong, which is innovation. we are very strong in bringing new products to the market. and this is an ecosystem. one last thing, we are benefiting from a low energy price,getting the gas from russia, this is over. this makes a transformation in the energy industry, we have to rethink what they do and where to reallocate that capital. i'm all positive. i do believe there's a bright future, and we can do a lot of benefit in a world that has a lot of challenges. is it co-2 reduction or feeding a billion people? >> the challenges the business faces maybe makes them all the more interested in solutions your company and others have to offer. thanks for joining us today. we look forward to what else is up your sleeve. appreciate your time. >> thank you very much. coming up, boeing shares down 10% in a week after the faa

grounded all 737 max 9s. we've got the latest on that. plus, the delivery numbers with the shares down half a percent. and nat gas prices, they are popping 10% today, going back to their highest levels since mid november. they anticipate both record demand and output for u.s. nat gas in 2024. we'll keep an eye on it. back in a moment with the dow do 2wn06. rtunity is using data to create a competitive advantage. ♪ it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity. ♪everything i do that's for my health is an accomplishment.♪

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how am i going to find a doctor when i'm hallucinating? what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. welcome back to "the exchange." boeing shares are coming off their worst day in over a year, after the faa grounded 737 max 9s for safety inspections. the company today announcing

strong delivery numbers, at least through december and the last full year, meeting the revised goal. phil lebeau has all of the details. >> hey, kelly. in terms of the investigation going on right now with the ntsb, we do not expect to have an update for several weeks. they had the last update last night in portland and said hey, we're going to go back and start analyzing the materials and go from there. meanwhile, the airlines, and we're talking alaska and united, they're waiting on the faa to give the final, yes, you can do the inspections and return your part 737 max 9s, when they return to service remains unclear. will it happen this week? will it be longer? part of the reason for this is that loose parts at both alaska and united were found on those grounded planes. how many, the extent of those loose parts when they were looking inside the fuselage remains to be determined in terms of how much we learn about those.

meanwhile, out in washington at the 737 max plant, in will be an employee safety town hall that will be taking place in a couple of hours. that will be led by boeing's ceo. we know what his message will be. there has to be a better performance by the company, especially when it comes to quality control. you cannot have planes with parts falling off or planes where people or airlines are reporting that there were loose parts. so that's going to be the focus of it. take a look at shares of boeing. you talked about deliveries and orders. we got the december numbers, and they were strong. in december, the company logged orders for more than 300 aircraft. one of the best months the company has ever had. 369 planes were ordered, with 1,114 ordered in 2023. strong year. not just for boeing, but also for airbus in terms of the airlines placing orders for future aircraft. >> while the attention is

focused on boeing, jetblue's ceo just resigned. the company is having its worst day in over a year in a pretty sudden change, although they are battling the doj over the spirit acquisition. and then this morning, b of a downgraded the stock to underperform and slashed the price target in half to $3 and expecting capacity to be down this year. what do you make of all this? >> you have a lot of headwinds against jetblue and a lot of uncertainty for the new ceo. the celloff is not because she was named the ceo. she's highly regarded within the airline industry, and it's long been assumed when robin hayes, the current ceo who will be leaving, when he was leave, joanna would get the job. robin hayes announcing yesterday, because of the stress and the toll that the job has taken on him, he is going to tend to his health and then retire. and so you look at those two

pieces of news, and you look at the fact that we don't know if the jetblue/spirit acquisition will get approved by a judge. the judge could rule in favor of the doj, which would send jetblue back to the drawing board and say if we're not hooking up with spirit growing our capacity, what do we do? it would be a tough spot for her. >> it's also fascinating to me that the argument by the government, if you approve this, it will be bad for consumers. if they don't, jetblue is going to be lucky to be a $3 stock. it's just a strange conundrum for investors. >> you know what the doj would say, they don't care about a stock price, they care about competition. that would be their argument here. and in terms of investors, look, if this were rejected, do i think it's a positive for the stock? no, i don't think it is. on the other hand, there is some clarity and jetblue could say okay, we know that this isn't going to happen. how do we grow the airline from here?

>> true. either way, the successor will have their work cut out. phil, thank you. now over to tyler mathisen for the krcnbc news update. ray epps, a january 6th rioter was september tensed to a year of probation. he expressed regret for believing the lies that the election was stolen. he pleaded guilty in september to a misdemeanor charge, and prosecutors argued that he had encouraged the mob to storm the capital and recommended time behind bars. he has been in hiding due to death threats from accusations that he was an operative planted by the government. the nfl is offering buyouts to more than 200 employees in new york city. employees across multiple departments were e maided a voluntary buyout package on monday and have until february to accept it. last march, the league laid off about 5% of its workforce. a coroner has confirmed sha

made o connor's death came from natural causes. london police have said her death was not suspicious when she was found unresponsive last year. kelly, back to you. >> tyler, thank you. i'll see you soon. coming up, one long-time hedge fund watcher says this will be the year in a surge of activist investing. as for the high profile proxy battle at disney, he says the tide may be turning in bob iger's favor. disney is around $90 a share. "the exchange" is back after this.

welcome back to "the exchange." they call it the consumer electronics show for a reason. it's not just phones and cars being unveiled this year. hair dryers and showerheads are also making an appearance, thanks to the likes of laurial, which just announced a slew of beauty tech products and shares are up more than 20% over the past year as the beauty category remains strong. joining us now is the ceo. nicholas, welcome. >> hello, kelly.

very nice being with you. >> without making this too personal, we're curious, this is a water pressure showerhead we understand, and infrared hairdryer, and what else? >> well, we've been here at the cex presenting products for almost ten years now with many awards. today, we unveiled the newest innovation not known is ally pro. it's a revolutionary hairdryer that uses infrared lights instead of heating rods that allows to dry hair 30% faster without damaging the hair, 30% more moisture, and that's very important to us in a more sustainable way. so that's really the one that is the most ground breaking innovation that we showcased amongst many others. >> that is very interesting. obviously, people don't want to burn their hair all the time. what came up with the technology, was it researchers at your company, and do you

think we'll all quickly be using this kind of technology to dry our hair? >> well, this invention was created by the startup that we had last year. it's a chinese startup, and they came up with the technology, but their hairdryer was not at the level that we need for professional stylists and for consumers. and that's why partnering with us, with our deep knowledge of hair, our science of hair fiber to create what i think is the best hair dryer in the world today. >> really interesting. so it wasn't an acquisition, but this is a collab as they say. i want to skip ahead here. you have a color reader. tell us about that. >> well, you know, what's fascinating with beauty is beauty is an innovation, and there's many products out there.

it's very difficult for consumers and sometimes even for professional stylists to find the right recipe that will match a consumer's needs. this allows you to identify the natural color of your hair, even if it's colored, so what's underneath. the state of your fiber, of your scam, whether you have dandruff and everything. it allows a professional to give you the right prescription of products. and if necessary, to choose the right recipe of hair colors to make you look beautiful. so it's enhancing and romancing the professional and the consumer with the capacity to choose and be more satisfied. >> you have a color sonic that could help you self-apply hair color. how many of these products, nicholas, are marketing exercises and publicity for the company that never become main stream mass market products, or do they? i don't know if you can give us some examples from history.

>> well, when we present something, of course it's always like a concept card. it's in the early stages of development, but we have the intention to bring it to market. i'll give you an example of a product showcased a couple of years ago. it's a machine that allows you to create your personalized lipstick at home and allows you to choose a color that matches your dress or have the same look as a celebrity, and the machine creates different recipes. this has been presented at cex. it's now sold on the markets. lots of sales in china where they love this type of products. and there are many like this. we have a device that allows people with hand anomaly issues to apply makeup was presented last year and will be on the market at the end of this year. so in most cases, i'm not aware of any we haven't launched. >> it's not only very cool, it makes me want to try it out. do you think you should be

valued like nvidia if you're such a tech-first company? >> we should be valued for what we are, the number one beauty company in the world. i think it's a very important claim, because beauty is a market that's been growing almost for 100,000 years. it's essential to humanity. it's innovation driven, and we are an innovation company. we innovated for centuries in hair biology and skin biology. now we're partnering with the best tech inventors. we're a beauty company, and we are a tech company. that's why we claim to be the leading beauty tech company in the world. >> i would say send us a few things, we'll see if we can get it to match, lip color, hair color, all sorts of things. nicholas, thank you so much. congratulations, and we look forward to learning more. >> thank you very much. have a great day. coming up, stocks unable to

hold onto yesterday's rally, down almost across the board today. nasdaq is up four points. the dow is still the underperformer down half a percent. yields are something to keep an eye on. the ten-year above 4% and decidedly so after that three-year note auction. we'll get a check on more of the biggest movers, next. don't go anywhere.

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♪ welcome back to "the exchange." dow is down 310. down 176 with the s&p down 6 and nasdaq up 16. juniper networks is leading the s&p, hitting a new 52-week high on those reports that hbe is in advanced talks to buy it for about $13 billion. deal could be announced as soon as this week. hpe down. coming up, shares of match group are popping on news elliott management has taken a billion dollar stake, they're

off the highs up less than 3% and down more than 11% over the past year. what elliott could be seeking and whether they could get it. that's next on "the exchange."

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♪ welcome back. shares of tinder owner match group are up around 3% today. this comes after "the wall street journal" reported a roughly billion dollar stake taken by activist investor elliott. and our next guest says this is only the beginning of a huge year for activist. joining us now is ken squire, founder and president of 13 d monitor and cnbc contributor. you want to offer any specific thoughts about what they might want to do with the dating service first, ken? welcome. >> hi, kelly. thank you for having me. yeah, this is a company that's a far and away leading in online dating apps, as i'm told. and they lead the market, but they've had four ceos in the last six years, tinder, the biggest part of that business, has had six ceos in eight years. the median ceo is just about a year. it's hard to implement a long-term strategic plan with a new ceo every year. i think elliott is probably going to look like they did a pinterest to get on the board, to help monetize some of the

assets here. fixed margins maybe help with the growth. and i don't know, at pinterest, they returned over 100% in a year and a half since being on the board. so i -- >> amazing. do you attribute that success to them? >> well, no. listen, the success goes to the board and management team in every situation. >> right. but were they -- was that really a key catalyst of theirs to figure out monetization with a declining user base, or did they just time it well? >> i think it was a little bit of both. 100% is a big number. but, the activists can often be the catalyst to motivate management, to motivate the board, to keep people accountable. and i think they did that. but, at the end of the day, the credit goes to the management and the board. >> so you think this isn't just about match or pinterest, but really we could see a lot more activist activity this year. where and why? >> yeah. activism -- it's the last five years, as you know, the market has really rewarded growth, over profitability. and you've had a lot of

management teams that are very good at growing companies. now that script is flipping. and people are starting to focus more on profitability. and there's a lot of ceos and management teams that need to learn new skills and that this is an opportunity for activist to come in who are more value-profit investors than growth investors to either replace management or help them with profitability and margins. >> and last year you saw -- so let's go over the kind of bigger trend here. what has been happening with activist over the last couple years? and other than some big examples like disney, where else should we watch for potentially some big moves? >> well, so, last year activism -- the number of activist situations in the u.s. were down. but money going into activism was materially up. so essentially activists have this year in 2023 have had fewer campaigns in smaller companies but taken larger positions. the big change in 2023, which i

think is a trend going forward, is activists at least had some partial success in 96% of their u.s. campaigns that have already been resolved. >> wow. >> we never seen any numbers like that before. i think a lot of it has to do with the universal ballot which was implemented last year. i think we could see some of that going forward. >> what's the universal ballot, in 13 seconds? >> universal ballot allows shareholders to pick -- have the most flexibility in nominating directors so they don't have to pick from the activist slates or management slates take as many as they want from one slate and as many as they want from the other. >> with all the focus on ballots, i won't make a political reference, but that's very interesting how that change is really bearing fruit. ken, thanks as always bringing us. bringing the knowledge. we appreciate it. >> thanks, kelly. good to see you. >> ken squire with 13-d monitor. another day, another health care deal on "power lunch." gks buying a bio pharma company.

healthcare sector hitting the highest in a couple years today. tyler is getting ready. i'll see you on the other side of this break.

♪ good afternoon, everyone. welcome to "power lunch." alongside kelly evans, i'm tyler mathison. major mergers in the drug industry. is this a sign of good financial health or a sign of problems with their pipelines? plus, more data coming out on shein. the fast fashion company prepares for a u.s. ipo, we'll break down their revenue numbers and how they compare with some of the big u.s. retailers. first a check on the market. we're off the lows, but we're still down, except for the nasdaq. the dow is down a fourth of a percent, s&p down 3 points the nasdaq is up about 30. we mentioned healthcare deals. it's not just in the pharmaceutical space. a tech dea