performers should continue as the economy hangs in there >> ge health care. mid single digit organic growth. >> all right joe t. >> i still think the smh and semiconductors themselves are the place to be. >> nvidia is hanging in there, that's for sure. it's in the green today. i'll see you on "closing bell. "the exchange" is now. i'm tyler mathisen in today for kelly evans. here's what is ahead the new bank of america survey shows overwhelming optimism for a soft landing, and record optimism on the prospect for rate cuts. but the fed's christopher waller warning about cutting too quickly and too much so how do you position against this backdrop? our market guest sees four areas of opportunity plus, a punch in the gut that's how our trader describes what some of the bank earnings have felt like so far, but he's buying three of the banks, tells us which ones, and the one name

he's avoiding right now. and some encouraging signs on housing we'll check in at a open house and hear from buyers and check in with a builder. the ceo of taylor morrison joins us live. we begin with today's markets and dom chu has all the numbers. >> it's been a bit of a whip saw movement in the markets. it started off as a down day we saw moves back towards the session highs and peaks of green for the nasdaq composite, only to head back down again. so generally speaking, we're off ha about a half percent the dow down three quarters of 1%, so fairly significant. half of 1% for the broader s&p 500. 4757 is the last trade there and one half of 1% declines as well for the nasdaq composite index, 14,892, the level there one place, though, that we are seeing some signs of life are in that technology trade overall. now, it's a little bit mentioned right now, but generally speaking, mostly in the green.

microsoft, nvidia, advanced microdevices, palo alto, all seeing some relative strength today. by the way, for microsoft, nvidia gets a star, palo alto gets a star, and arista does, as well and then speaking of that technology side of things, if you shift towards crypto currencies, bitcoin is back above the 43,000 mark. a little pullback since then, up a little today but bitcoin prices, still a very big focus for some investors out there. it's $43,000 and change. back over to you >> dominic, thank you very much. a new bank of america survey says 79% of investors are

expecting a soft or no landing of the economy however, cash levels are up, driven by a dip in optimism in bond yields. my next guest says he still is a buyer of short term and treasury bonds. we'll find out why he's president of the permanent portfolio family of funds. michael, good to have you back among other things, you say you like so-called dollar based assets in this market environment. what are they and why? >> good afternoon, tyler well, today not with standing, as the dollar has gone up, i guess, but we tend to invest most of our investors are u.s. based, so that's one reason it takes away currency issues and takes away the tax differential. and also we feel our portfolio is hedged, whether the dollar goes up and down, we're not really making any bets on the dollar we have assets that would do well in a declining or advancing

dollar environment >> you also like strategic metals, like gold and silver why? >> we think of the long-term, the fed is probably close to being done, if not done. and that's bullish for the precious metals. gold and to some degree silver we think that declining dollar, increasing global demabldznd ov the next few years, green energy, green general is really good for things like copper and other industrial metals. so we think there's a lot of tail winds, but you'll have to be patient so we like that. so yeah, it's broad based. we like the metals >> michael, we're going to ask you to sit still as we have breaking news that we will go to phil lebeau for. phil >> tyler, we are looking at a decision in the jetblue spirit merger case, and it is against jetblue and spirit merging the doj victorious

a judge has decided this merger will not go through. take a look at shares of jetblue and spirit you see the reaction that you are seeing, especially with spirit, down 47% a judge, again, deciding that the doj has prevailed in proving that it would hurt competition if jetblue and spirit were to merge. so as a result, you will not see this merger between jet blue and spirit again, doj victorious in this case >> is there any route of appeal for spirit and/or jetblue here >> i would assume that there is, but i don't know for sure, tyler. and then the question becomes if you are a jetblue and spirit, do you want to try to pursue an appeal this has been a long process, and even though people said from the beginning, look, with this doj, you know that they were going to go against it, but they -- remember, they outbid frontier jetblue did, in order to get this spirit deal announced

and spirit agreed to it. so now the question is, do you want to go through that process if an appeal is possible >> i wonder if there is any partner for spirit that would not arouse the ire of the doj? >> great question. in this environment? i have to wonder that, too, tyler. look, the people at frontier long believed that a combination between frontier and spirit would make sense, because there was not as much overlap as there would be with jetblue and spirit but at the end of the day, even with jetblue saying look, we'll divest gates we will pull back some of the exposure that would have been there, especially in florida and parts of the tristate area that wasn't enough the judge said at the end of the day, this is going to hurt competition, i'm paraphrasing here and as a result, the merger is not going through. >> well, if you're a holder of spirit airlines and you're long, this is not a good day

you're down 60% on the session >> no. >> phil, thank you very much >> but you knew it was a possibility, tyler >> oh, yeah. you got your eyes open if you're a holder there phil, thank you very much. now back to michael. thank you for your indulgence there. let's talk about equities and we've talked about bonds, dollar-based assets, gold and silver let's talk about your view in the equity market. you like energy and natural resources, semiconductors, and defense. >> i think it starts to go back to my point on the commodity metals i would throw energy into that mix. we think fossil fuels are going to be around a while that transition to green is going to be slow global demand is going to pick up the world needs oil and fossil fuels. so, again, patient investor, these companies pay dividends. the total return in these stocks over the long-term is really

good that would include the industrial metals. we like semiconductors with ai we own nvidia, and that trade would generally involved in the software side. but we like that area. that's the computing power that needs to happen to keep technology advancing so we want to be in that space we like defense, because lockheed martin, for example, because the world is a dangerous place right now, and getting more dangerous that company tends to benefit from that. again, a total return play and a reasonable price on the bond side, the strong dollar situation helps lower duration bonds generally, and we like lower duration, high quality corporates and treasuries, as well. we believe it will be a little more interest rate volatility before we hetsettle in on

lengtlen lengthening duration >> michael, thank you very much. well, there's been pain and some gut punches, that's how the next guest sums up bank earnings goldman and morgan the latest names to report this morning for more, let's bring in our friend jeff keelberg, a cnbc contributor. he joins us for a special "three buys and a bail, bank edition. goldman is higher today after posting a revenue beat shares up more than 20% since november you think it can keep going? >> i think it can. goldman sachs, we talked about them being one of the big banks. they do such a great job, and 45% of their revenue is derived from trading they had a great year of trading. this is a name i think you can own, and i think the banks buy broad swath in general, you're seeing the gut punch being assessed by the fdic

they're bailing out silicon valley bank, $16.1 billion so the theme today of all these banks being in the red is due to the fact they have to pony up. you see goldman push up about $529 million going into that insurance fund that got depleted from signature bank as well as svb. >> morgan stanley moving the other way after earnings revenues beat expectations, but that fdic payout cutting into earnings under the new ceo >> yeah. i like morgan stanley here if you look technically, it potentially offers some support, but they paid $286 million into that insurance depletion so you're seeing all these big banks really get a haircut today, or a two-by-four to the back of the legs there's an lunlt as you see the wealth management side of morgan grow, and provide revenue, i

think it's another name i want to own >> the third buy on your list is jpmorgan, the sort of grand daddy of american banks. >> it is, ty market cap at nearly $500 billion. this is an company 40 portfolio name, an essential bank to the american way of life we go back to last friday, that trading action, that's what we look at when we try to have a better understanding in the wake of that trading report, that was one of the best earnings reports they had, sure enough, as shareholders realized that they were getting a punch to the gut with about 74 cents per share, because they had to kick in $3 billion to the coffers for the svb and signature bank debacle we saw in 2023 so you think about jpmorgan above the trading moving average, this is a bank we want to own if you look at the bigger picture, 2023, this is the best bank of anything we talked about.

>> being a shareholder in some of these banks is like being a member of a condo association where you get hit with an assessment at the end of the year now to the bail. and that would be bank of america, reported last week missing on revenues, as long growthslows down alongside economic activity more broadly why the bail here on this one? >> i'm bailing for a couple of reasons. primarily, you saw last year, and when we saw interest rates move higher, all these banks were doing the backstroke. you saw providence move lower in 2023 so that was a hard pill to swallow as a shareholder, when you see the revenue drop the way it is. it went down to $3.1 billion in to 23, so bank of america is a bail as they have a lot of hard months ahead pu at the end of the day, they're coughing up $2.1 billion

to put into this insurance fund. i can't believe we're in 2024 and still talking about that regional bank chaos. >> let's talk about the markets more broadly and how you assess the year so far and whether you think we -- where we are in this working through of what i'll say is a bit of a stepback from an overbought situation that -- with which we close the year >> you can argue some of the earnings or some of the performance in 2024 was taken in december in 2023 but i think this is quite healthy. i'm cautiously optimistic. are we going to see a rate cut in march but there's a lot of momentum and a lot of cash on the sidelines. so we still want to own the market here. it's an opportunity as we see some churning or vacuum filling. this is healthy consolidation as we make a move above $4800 in the s&p 500.

the vix is telling us those expectations are in line with my view >> we talked about the banks there quickly. do you think the banks, relative to the market as a whole, are going to be something that they were not last year, and that is outperformers this year? >> i think they will outperform. but it's a high hurdle to get over coughing up $16.1 billion for these banks, that hurts. but yes, i think banks are what you want to own, but i don't think you can own xlf. you have to be very particular like a morgan stanley or jpmorgan >> jeff, thank you very much happy new year, jeff coming up, this weekend's snowstorm couldn't keep people away from open houses. our cameras were there, and we'll bring you the latest on how home buyers are feeling about prices, rate, supply and we'll get the news from a builder, as well taylor morrison, ceo of cheryl

palmer, joins understand next, live houthi rebels ramping up attacks in the red sea following the american strikes in yemen. we have the fallout for oil and shipping prices ahead. "the exchange" is back after this hi, i'm greg. i live in bloomington, illinois. i'm not an actor. i'm just a regular person. some people say, "why should i take prevagen? i don't have a problem with my memory." memory loss is, is not something that occurs overnight. i started noticing subtle lapses in memory. i want people to know that prevagen has worked for me. it's helped my memory. it's helped my cognitive qualities. give it a try. i want it to help you just like it has helped me. prevagen. at stores everywhere without a prescription.

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welcome back to "the exchange." i'm phil lebeau with breaking news regarding boeing. shares of boeing, the company has named an independent adviser to assess the quality of its commercial airplane manufacturing business the independent adviser is admiral kirkland donald, the chair of huntington eagles industry, he'll report directly to boeing's ceo. boeing announced it would be doing a review of all commercial airplane manufacturing facilities, the process from start to finish. now we know who will lead that again, admiral kirkland donald, will report directly to boeing's ceo dave calhcalhoun. >> i read an interesting article

over the weekend that had the opinion that because it appears that the problem with the door plug was a manufacturing related problem as presumably opposed to a design related problem, that may make it, in fact, harder to fix, because a design related problem, if you fix the design and correct it on the individual aircraft, you're done. but here, you're kind of -- if it's manufacturing, there's so many steps, so many parts, so many chain of deliveries, that it's tougher >> it's hard to know for sure, tyler. i'll take the counterargument. if it's a manufacturing and production issue and they can identify where they -- what's going wrong in the step from start to finish, then perhaps you can address it quicker bottom line is they still don't know exactly what caused the problems that led to that door plug being ripped off of the alaska airlines flight, that

fortunately nobody was seriously injured when that happened once they find the root cause, that goes a long ways towards saying okay, here was the problem, why did we not catch it in the process >> this is -- it's a very interesting thing, because the more and more you read, the kind of systemic quality review that is seemingly being put in place here with this new independent adviser is what is needed at boeing right now phil lebeau will be following this into the future phil, thank you. appreciate it. mortgage rates well off october highs, but are they low enough to get buyers back into the market diana has the answer >> the answer is yes, there is a surge in interest from buyers and sellers, likely because of the drop in rates. the 30-year fixed hit a high of 8% in october, then came down in november, slowly and more sharply in december, now sitting around 6.69% so despite four inches of fresh snow and freezing temperatures,

buyers showed up to this open house in detroit on saturday the home is listed at $254,500, well below the national median price. but more than twice the detroit me median nikita bell said the drop in rates got her out looking. >> i have a home in georgia. that finance rate i got way back when the market crashed at 4%. so i will never get 4% but i don't want 9, 10, 11, 12 it's not a credit card, it's a house. >> a recent survey found consumers think rates will drop further this year, maybe why they're out now. agents say they are expecting to see sellers get in the game also because of lower rates >> because rates have changed somewhat so some are feeling more comfortable now with putting more homes on the market it's not going to be as reflective right this moment, but as we get closer to the

spring, you'll see more homes come on the market as we have seen of the last few weeks here, especially in the beginning of the year >> now, the wild card, of course, is prices. they're still rising and the gains are accelerating detroit is seeing the fastest home price appreciation of any city in the country, beating out miami because it's an affordable market >> who would have ever thought that five years ago, ten years ago or whatever, detroit now the fastest growing market in the country price wise diana, stick around. our next guest has her finger on the pulse of home building she expects to see strong demand in '24 with foot traffic up 25% in just the first two weeks of january compared with a year ago. let's bring in cheryl palmer, ceo of taylor morrison nice to have you back with us. we appreciate your time. >> well, thank you good to see you very much. >> have you efficient thought of changing the name to taylor swift? it might help.

big branding move. >> you know, i heard about that when we took the company public ten years ago, that was cramer's recomm recommendation but we held on to taylor morrison >> good for you. just putting it out there. are you seeing what we just described there, increased foot traffic, increased interest among buyers, and maybe even sellers, as rates come off the boil a bit >> yeah. i think diane said it very well, tyler. we haven't reported yet, but consistent with what you heard in some market reports, you know we saw rates really peak early in the fourth quarter. as diana said, 8%, maybe even a little higher, you think about what car rates really look like. so today moving and seeing rates down under 7% is significant you know, the builders have a number of tools in their

toolbox. i think our ability to assist consumers in today's market is critical it's probably one of the differences between the new home market and the resell market i am very optimistic i think we have a nice, healthy backdrop for a very strong 2024. >> i want to squeeze in one more question before i let diana talk to you, cheryl so you mentioned the tools that are in the toolbox this is something i've heard several times in talking to other builders what are those tools in other words, what should a buyer, who is coming to look at one of your properties, what should they be asking for by way of financial assistance to help ease the buying process? >> it's such a wonderful question, tyler. i can tell you, there's a reason that we have to work with each individual buyer, because there's not one answer to that question i mean, i think there's a reason

we just got -- we don't think consumers -- we have so many tools in the toolbox some might need help with closing costs. some night need that certainly of a 30-year rate, so we can help them with buying down that rate some want to build the home of their dreams and might not close for six or eight months, so we have a program called buy, build, secure that allows us to lock in low-market rates for them so it's about sitting down with each of our customers, understanding their needs, and putting them together. >> diana, your question? >> yeah. i want to talk about those rate buydowns, cheryl we heard a lot about them from all the builders across the board. that was a big incentive this fall to get buyers in the door with rates as low as 5%. how is that hitting your bottom line there's good sales but margins

are not so great because of those rate buydowns. >> yeah. certainly, diana, as you mentioned with rates in the 8% range in the fourth quarter, those buydowns were a little more expensive we've seen the cost of those come down quite a bit. so i think that when you look at all the ins and outs of what goes into that margin, to your point, and we look at the savings on construction, i think we're in a really good place each builder has a different set of programs, so it's hard to speak about another realtor to report but i feel good about the trajectories >> just to follow on, that would you expect to see more price cuts we are seeing that from other builders, as well. again, that it hits your bottom line >> i think it's very different by market. i think it's very hard once again to think -- in some markets we are seeing prices go up in some markets, we're pulling

back on incentives, because just by the cost of those rate buydowns coming down, we're able to pull back a little bit. and we haven't really seen market price adjustments i would tell you for the most part since middle of last year there will always be certain circumstances, but all in all, i have a very constructive view on where we're going when i think about positive momentum. and you know better than i do, when we think about rates dropping, i think it's for every 100 basis points that we see rates drop, we see about 12% more consumers be able to afford medium priced homes. so as i look forward, none of us know what the fed is going to do we saw some of that uncertainty today, with the ten-year going up, but all in all, i do think we'll see steady rate environment in the 6s in 2024.

>> diana mentioned that detroit has become an extremely -- prices are going up faster in detroit than elsewhere in your sales area, are there markets that are particularly hot right now, and ones that maybe surprisingly are less so >> you know, i can only speak to kind of what we saw last year, since we haven't reported. i would say generally the same, but markets like florida, texas, arizona, we've seen just very healthy demand we saw in the third quarter a little bit of a slowdown i will tell you parts of the pacific northwest, we've seen our active adult business across the country do very well one of the things i'm excited about with rates dropping is, i think you rarely see that second buyer back into the market a little more sophisticated buyer

that didn't want to hold on to the highest rate available back in the fourth quarter. but i would tell you it comes down to communities more than markets right now. if you have good product to meet consumer needs in the right locations, at the right price, i would say we're seeing strength across the business. >> taylor morrison, taylor swift, whatever. cheryl, thank you very much. we appreciate it >> thank you take care. >> diana, thank you, as well coming up, a rare interview with the regulator who has arguably taken the toughest stance against big tech. should silicon be worried that there is more toom hexcng is back after this all work differently now. so cdw helped us deploy mac, supercharged by apple silicon. ♪♪ built-in security protects me from malware and forgotten passwords. i've got enough battery life to get me halfway around the globe. and lower overall costs leave more money in our budget. for more practical furniture?

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welcome back to "the exchange." markets right now in the red, as we begin this shortened week the dow's low today was a negative 299, right now down 22 points or 3/5ths of a percent. ten-year yield above 4% after christopher waller suggested the fed may be slower to cut rates than the market expects, sending rates above 4% in the case of the ten-year note. now to pippa stevens for an update >> the gop candidate debate on thursday in new hampshire is looking pretty empty, as nikki haley announced today that she won't be there unless donald trump takes part only florida governor ron desantis is confirmed for the event.

ron desantis wrote that haley was afraid to answer the tough questions, and that she was really running to be trump's vp. thousands of flights across the u.s. were canceled or delayed today, as the winter weather continued to punish travel storms in the northeast delayed about 4,000 flights this morning, but that is an improvement on monday, when more than 10,000 flights were delayed. and sean diddy combs will part ways with diageo he dismissed his lawsuit, and diageo retained full ownership of the tequila tyler, back to you >> thank you very much still ahead, 32 attacks in the red sea by houthi rebels, the latest just hours ago, targeting a greek cargo vessel

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welcome back to "the exchange."

crossing the wires just moments ago, the u.s. has launched a new attack against yellen-based houthi rebels. it is the third round of strikes in recent days, but the strikes have apparently done little to dissuade the iran-backed group so far they have attacked 32 cargo ships, and the hostilities have companies that operate in the middle east on high alert. here's what chevron's ceo said about how they're handling their interests in the region. >> the risks are very real, and so much of the world's oil flows through that region. were it to be cut off, you could see things change rapidly. we've been able to maintain our movements through the region and others have, as well but this is an evolving situation, and we have to watch very carefully >> secretary of state antony blinken saying there will be further repercussion it is the attacks continue particularly because they're impacting the global supply chain. so what will it stop to take the houthi missiles? joining us now is greg brew,

iran and energy analyst at the euasia group >> thanks for having me on >> i'm going to start with the economic effects of these attacks, which are down near a pinch point in the red sea generally, you have container and shipping prices. what's happening with them what's happening with oil prices and then what's happening to the supply chain when we read of companies like tesla in europe having to suspend production because they can't get parts as quickly as they need to? start with container shipping prices, if you wouldn't mind >> absolutely. so this is still largely a container shipping story what we have seen a considerable increase in costs that shipping containers incur, including rising insurance costs, rising risk premiums, a big reason why many opted to send their ships around africa. it's longer and slower, but it's safer. this has led to increased costs

to consumers you mentioned the impact on tesla. this is largely a europe story a north atlantic story so the impact on container shipping has been significant. thus far, we're still looking to see what kind of impact this could have on oil and gas. obviously, this is the middle east oil and gas is a huge factor as far as regional traffic is concerned. and the ceo of chevron summed it up well. we're seeing an increase in risk, but a lot of oil and gas is still moving through the region >> i don't mean to catch you on the wrong foot here, but if you could put numbers on the difference in cost of sending a container from the middle east into europe using one route opposed to the other, if it cost x four months ago, what multiple of x is it costing today >> well, as far as the insurance, what i've seen recently suggests that companies have to pay as much as 1%

insurance costs on what they're putting through in order to take on the additional risk 1% on a $100 million cargo is $1 million. so is a company willing to pay a million dollars to cut a few weeks off the route to incur that cost? you know, you would have to talk to the companies as far as what they were paying a couple months ago, i would say at least an increase a factor of three or four as far as where the situation was a few months ago. so this is an increasing cost to container ships. they don't want to see their ships getting targeted or hit, so they decided quite early on to divert around africa, opposed to the oil and gas shippers who are generally more risk tolerant they see the risks, they know what they're going up against and still sending their ships through the red sea. >> how do you analyze the possibility that the strikes on the houthis, their military installations, radar, ammunition depots, et cetera, launch sites,

is going to affect their -- dramatically affect, cripple their ability to mount these strikes, which often are mounted via drones or via speedboats that are very hard to target >> absolutely. i mean, you summed it up so well when these strikes came last week, no one was surprised the u.s. telegraphed the strikes days in advance. the houthis had a chance to prepare. these strikes have continued we have seen three rounds of u.s. strikes over the last self-days. the strikes that happened today were preempted the houthis are well dug in with elaborate infrastructure in place to launch these attacks. when it comes to missiles, the u.s. can hit the launch sites, hitting the storage sites. but most of the houthi attacks have used drones, which are easy

to launch in large numbers they're easier to intercept, but they might have a harder time hitting passing ships, but i don't think these strikes will reduce their capacity to launch attacks. >> they're clearly well equipped by iran. they are veteran fighters, having been hardened through what has been a civil war and the intervention of saudis on the other side to try and counterweight iran's influence there. talk to me about what you know, if anything, about the missing navy s.e.a.l.s who were involved in an attempt to board a dow last week, and disable it, which i think they were able to do but at the cost apparently of a couple of missing u.s. service people >> indeed. i think at this point, finding reports on what happened to the s.e.a.l.s, we're waiting on

that we're not sure what happened to them but it speaks to the length the u.s. is now going to not only has the u.s. hit houthi targets in yemen, the u.s. is clearly trying to disrupt the houthi supply link to iran the houthis count on iranian support. iran has been backing them for years, supplying them with weapons, no-how. it's likely that some iranian vessels are supporting the houthis by supplying targeting information so that they can decide which ships they want to target so iran is deeply involved here. the united states is trying to disrupt iran's link to the houthis without escalating the united states is very concerned about escalating a regional conflict. it doesn't want to get in a shooting war with iran, but it wants to degrade the houthis any way it can >> greg, thank you very much love your work we appreciate your time today. thank you. >> thank you so much meantime,analysts at red burn atlantic are highlighting

one freight name that will benefit from the shipping turmoil. that is the railroad canadian pacific kansas city. expecting shippers to reroute to mexico's west coast and use mexico's land bridge to move freight. shares are coming off their best month in more than a year. for the full story, go to cnbc.com coming up, tech, one of the best performing sectors so far in this young year but one of the toughest regulators has a warning for the industry "the exchange" will be right back r policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth.

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welcome back to "the exchange." some of the so-called mag seven being accused of skirting eu digital competition rules in an open letter from a group of other tech and media companies today. the letter comes ahead of a key

march compliance deadline for the tech industry. our diedra bosa sat down with your's competition chief to discuss what comes next. >> you're reffing to the digital markets act, but there's the markets, as well we've seen a slide back to quality, the mag seven leads the broader markets. but europe's anti-trust chief, her recent trip to the bay area is a reminder that regulation will play a bigger role this year she's the original anti-trust bull dog that has taken on big tech and gotten results. she was in the bay area last week making sure that they are getting ready to comply with that digital markets act, which she describes as a new era of regulation there is skepticism, so i asked her how the relationship with big tech here has evolved, and what makes her confident they'll comply >> it's difficult to say for sure, because obviously, there is some paying lip service

but i think in general, the atmosphere and the discussion has changed quote a lot, from the very early day when i opened the first case, walking up the hill in washington, oh, my god, they were sayingwhat is that woman doing? now you have sort of a much more nuanced approach to say well, when the digitalization happens all over our industry, we cannot just let market power decide who gets the better part of this so i think we have a much more nuanced approach we have very active u.s. authorities and the ftc and the doj. we have a very nuanced, proactive discussion in the senate so it's a completely different situation. >> meanwhile, guys, the efficiency drive, that continues with google the latest planning to lay off hundreds of employios in ad sales. burnstein calls it the years of efficiency with an "s.

this would be an ai element at play, as well. a survey revealed that a quarter of global ceos expect generative ai to lead to head count reductions i thought this was interesting it's an interesting example here the company is cutting contractors while leading on moo produce more content go to cnbc/tcweekly. guys >> thank you very much, deirdre. peacock's playoff bet, well, it seems to have paid off. what the record-setting viewership for that kansas city game means for the future of watching sports as well as k comcast streaming wars the dow is off 306 massive solare added a 25th hour to the day, businesses are wondering "what should we do with it?" bacon and eggs 25/7. you're darn right. solar stocks are up 20% with the additional hour in the day. [ clocks ticking ] i'm ruined.

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♪ now dow down at session lows 332. welcome to "the exchange" for a chully tuesday shares of comcast flat today despite making streaming history over the weekend a record 23 million people watched the kansas city chiefs take on the miami dolphins in the first-ever exclusive live

streamed nfl playoff game on nbc universal's peacock saturday night with taylor swift in the house. it was also peacock's biggest day ever accounting for 30% of u.s. internet usage during game time. think about that joining us now what to discuss this means for the nfl at the start of the playoffs, and the streaming era is barten crock et, senior media analyst welcome. i suppose peacock passed the test not only did they pick up viewers. not only did they set records, they didn't crash. >> certainly you know, they can take the ball into the end zone and spike it they scored on this play can they uncork the champagne and say they won a championship? no peacock is still, you know, they guided for tracking losses around 2$2.8 billion this year

the real championship is gaining profitability from that, gaining long-term viability. but i think what we see with this, with the consumer's willingness to sign up for a subscription service, put up audience numbers comparable to anything we have seen on tv is that the future of sports is streaming. this is where it's going and peacock, comcast, they're players. they're able to put up some good scores. >> are the leagues going to find comfort in this? in other words, there was a worry that if you didn't have the traditional legacy players -- you'll still have them, fox, cbs, abc, espn, so forth, bidding for this content, and you were relying on streamers, they weren't going to be able to pay the same high prices that those other legacy providers had, this would indicate that the streamers will have the financial muscle, not just the ability, but the

financial muscle to buy these rights >> yeah. they have a proof point that the audiences on streaming can stand toe to toe today on television on premiere sporting events. that wasn't the case a few years ago. >> no. >> it will probably be more the case with the time going forward. with those eyeballs will come economics. absolutely you expanded the universe of players that can bid for the sports rights from media companies, which was yesteryear, to media companies and streaming companies today. which is great if you're a league it's great if you own a team helpful for a couple of stocks i cover that are actually leagues and teams. that would be the atlanta braves and formula one. so, the sports story is certainly helped by that. >> let's look at the streaming services we have a graphic showing the relative size of those services. and there are seven on the board there. i would say one, disney, two, max, paramount is part of a legacy company, peacock is part

of a legacy media company. how many -- how -- and there is peacock at 30 million subscribers. maybe ballooning some over the weekend because of that game how many of these are really viable as we go forward here are they going to be seven major players or three major players, what >> yeah. i think for mayers that are in the 200 million plus subscriber zone, there's only going to be a small number, could it be three, yeah, that seems more reasonable could there be a handful of brands that are in that 30 million zone, sure but peacock's game i think is to be a little bit bigger attempt that you know, so, definitely one of the big kind of concerns has been that they're sub scale, but the ability to -- their plan has been to leverage the tv network and invest in peacock as a

flanker. and you know, i think what happened this weekend is an argument that that can work. and but they can't celebrate victory yet because clearly they're smaller and still investing. >> and lost 2.8 billion in 2023 by all estimates barten crock et, thank you very much we appreciate your time today. >> great thank you. that does it for "the exchange." contessa brewer is standing by getting ready to join us here. i'll join here on the other side ofhiquk ts icbreak. the dow down 320 we have more market coverage coming up. in real time. (jen) so we partner with verizon. their solution for us? a private 5g network. (ella) we now get more control of production, efficiencies, and greater agility. (marquis) with a custom private 5g network. our customers get what they want, when they want it. (jen) now we're even smarter and ready for what's next. (vo) achieve enterprise intelligence. it's your vision, it's your verizon.

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♪ welcome to "power lunch," everybody. nice to have contessa brewer here taiwanese voters re-elect the ruling party despite china's warn