>> did you see my apollo global management they're breaking out >> stef? >> i like slb. great free cash flow >> s&p 500 right now, never been higher 4903 is what we'll call it so we've got some records to watch for. i'll see you on "closing bell. i've they have been higher, either i'm tyler mathisen welcome, everybody, to "the exchange." the magnificent seven trade has created a lot of dislocation of capital and our market guest says that is a good thing, because it's created a lot of opportunity and he will tell us where those opportunities lie. less than two weeks of the bitcoin etf approval, there are two asset managers dominated and one of them is here today just minutes away we'll get a small bank gut

check. two under the radar names, both beat on earnings, both up big in the past three months. both ceos will join us we begin with today's market and the numbers with dom chu >> record breaking numbers for sure it's green across the board for the dow, the s&p 500 and nasdaq. and specifically we're seeing in on the nasdaq composite, up 1.25%, thanks in large part to some of the stuff we'll talk about later in the show. it's up 190 points, 1.25% gains. the s&p 500, again, records there, up about 35 points, 4900 the last trade there this is by the way, just around year session highs up 36 points right now at the highs of the session so far. up 39 is the range so far and up about 16 points at the lows. so it's generally been a good day. the dow industrials average, up about 1/3 of 1%, up 38,024 the last trade why the outperformance communication services and

technology, that's the driving force. one of the big contributing factors is a slate of new record highs within semiconductors. talk about names like nvidia, record high. advanced microdevices, broadcom, a lot are trading at highs you can kind of see here a breakout happening for this particular etf we'll see if it remains a leadinglead ing indicator. and one other place to watch, it's not all green the single worst performing stock in the s&p 500 today, and it's a big one, is dupont, down 13% after preannouncing results that came largely below expectations the company expects some of those weakness trends to continue in the current quarter. again, that preannouncement is driving a lot of the downside action in due point, down 13%. one to watch there with the stock's market at record highs back over to you >> dom chu, thank you very much.

our next guest says that all the capital going into the magnificent seven stocks has created opportunity in what he calls the forgotten stocks one of them, verizon he called it a better investment than tesla six months ago, and so far so good joining us now, mai capital chiefs equity strategist chris, welcome walk us through that verizon call verizon has been a sleepy dog lately that's the truth, tyler, but th th therein lies the opportunity tesla has been the exciting go-go stock, but if you think we're at the kind of tail end of an economic comeback, and if you think that verizon six months ago, less than seven times earnings, a greater than 8% yield, both of them almost records in terms of low valuation. and then you look at tesla, which at the end of the day is a car manufacturer, a terrific one, but a car manufacturer, valued at market cap than any of

the other car manufacturers put together, and you get the feeling that the weights will shift. indeed, they have. so investors have come back, you know, and verizon has gone from seven times to nine times earnings there's still some appreciation possibly ahead >> so i get the idea that you, and others of your associates, believe that loving the unloved may with the way to go this year but sometimes the unloved are unloved for good reasons >> absolutely. >> how do you discern the lovable unloved from the -- from the -- from the correctly unloved? >> sure. so you build yourself in a big margin of error. so verizon is a great example. each though it was clearly unloved, it still had an investment grade balance sheet, still had terrific cash flow, and it was ending a capital spending cycle on the 5g so you had all these tailwinds, and nobody cared about it at

all. >> getting rid of some investments in media, too, that had not worked for them. >> exactly so there you had some backstop so i thought the worst case scenario would be dedmony. i like that. if you look forward, there's companies down for a good reason, and probably we would stay away from i would look at the balance sheets in this highest interest rate environment but there's some other stuff that is forgotten and looks real attractive >> let's talk about one company and one commodity, the commodity is lithium >> right >> which has gone down a great deal in value. you like it, and albamarlo is a provider of it >> again, like verizon, investment grade company this reminds me of oil three years ago, where nobody wanted it energy in 2020 was the worst performing sector. lithium prices are down 80%. so i'm not calling the bottom, and i'm not calling a time

period, but i am saying i bet several years from now this would be a good place to be. remember, energy in '21 and '22 was the best performing sector of the s&p so go where folks hate >> ha, ha, ha. let's take a break here. i'm going to come back to you after we go first to rick santelli and get the news on the five-year auctions >> hi, tyler listen, not good news here 61 billion, as i said before just like yesterday's twos, we've never seen bigger auctions we have seen exactly the same 61 billion size five-year and those were during covid years in 2021. but those are the high water mark, and we're back to those again. and today's 61 billion five years yielded at this action, 4.055. the issue is the one issue mark that was trading 4.035 it tailed two full basis points.

that is a big minus. and most of the metrics were highly negative. 2.31 bid to cover. so $2.31 of investor demand chasing every dollar of security being auctioned off. that is the weakest ratio since september of '22 just a whisker under 61% indirect bidders, those are the big foreign buyers since september of 2022. the only decent metric was direct bidders dealers took a whopping 20.4%. guess what the most they have taken since september of 2022. as you look at the charts, you can see how the market is moving higher on all maturities five-year yields on pace for the highest close since the 12th of december that d-minus grade is not a nice setup going into tomorrow's seven-year note auction. tyler, back to you

>> let me ask you to clip through all the wonderful numbers that you just gave us. is the bottom line here that the market doesn't want to accept or can't digest the volume of supply that is being pushed its way? >> well, yes i think that's a pretty accurate assessment investors are gun shy to step up too aggressively to auctions that have moved to very close to all-time record high amounts being auctioned, and this, of course, moves into not only a u.s. scenario, but a global scenario, where debt offerings are going to be on the high side for the entire year. >> all right, rick santelli, thank you very much. chris back with us now do you have any reaction to those fixed income numbers >> well, i thought for a little bit, tyler, that the market consensus on the fed cutting sooner rather than later is a bit optimistic

somebody used the phrase "victory cuts," like the fed is going to take a victory lap by giving us a cut or two i've never seen that in my career the fed cuts for bad reasons, not good reasons so rates ease their way back up as we see today's auction. >> back to albamoro and lithium, that stock and commodity have been knocked down so much that eventually they'll come back because they are unloved and have some intrinsic value. however, we keep hearing about how the uptake of electric vehicles is slackening >> right >> so maybe one of the big demand thesis or theses behind lithium is being undercut. >> yeah, but that feeling, i think, is the feature, not the bug here i think the consensus is starting to form as oh, evs are a fad, they are slumping i think that's why lithium

prices are so low. lithium prices are so low because remember, there was a scarcity of lithium a couple of years ago, so folks preinventoriyed some of that, but those will work off. so we heard about the stories of peak oil when oil was down i think there's a cycle of the story creating the bear market but i do think it's hard -- the u.s. is probably the slowest adopter of evs but europe and china is doing it so it's a big market out there, and this is a cyclical slump, not a secular change >> chris, thank you very much. nice to have you here. bitcoin is down about 20% from its recent high of $49,000, following the s.e.c.'s approval of spot etfs roughly two weeks ago. who figured? prices hovering near the lowest level in two months, trying to

stay above $40,000 those new spot etfs have seen positive net inflows since their launch you expect that, i guess, according to fund strat. black rock and fidelity's product leading by far but investors have cashed out more than $3 billion from the gray scale bitcoin trust since its conversion to a spot etf for more on the state of spot bitcoin etfs, we're joined by cynthia and our own kate rooney. kate, the floor is yours >> thank you very much cynthia, great to see you. we're excited to hear from you today on this. i want to kick off with how investors are differentiating between these etfs on the surface. a lot of people they look the same how are people distinguishing between what fidelity is offering and what others are doing? >> first of all, thank you so much for having me today

we are really pleased with the market reception for these products, and what we think of as a differentiator for the way in which we designed this product is our ability to be able to provide a custody solution for these -- for our bitcoin edp, as well as our own proprietary index methodology, provided to our index team and capabilities there for pricing. and that, i think, is reflectiv of an over to research and development in the digital asset ecosystem. >> you think a lot of people might not know how fidelity has gotten into bitcoin, but also digital assets i wonder about the next step here what do you think the odds of that being approved this summer? >> well, so, you know, as you know, we do have a filing that

is lying with the s.e.c. at the moment, so i can't comment much more beyond what is on the public record. in terms of what we think about the prospects, you know, i can say on that front is that we are looking forward to engagement with the regulator as we have for several years in the development leading up to the launch of the bitcoin etp. >> how are these bitcoin etfs going to fit into the average retailer investor portfolio? can you give us a breakdown on the state of the retail investor >> yeah. so what we have heard from retail investors, and just all investors across different client segments on our platform is that there's a great deal of interest, and certainly curiosity and wanting to learn more about digital assets and

bitcoin. our commitment to, you know, how it is that we think about products that we make available on our platform is we want to offer a wide variety of choices, of assets, but alongside of those choices, we always ensure that we are providing research analysis and insights derived from our research teams across the platform that way, you know, we believe that it's important to provide t that education to facilitate investors to make good decisions. >> do you expect some consolidation, maybe some of these etfs to dissolve at some point, as fees are fiercely competitive. there's probably not enough inflows for everybody. i wonldz whatever you expect in the next year or so or five years when it comes to these etfs and the competition here. >> i think what we have seen in the etf markets overall is that there is, you know, as you pointed out, competition among

similar product offerings, and our commitment is always to ensure that our investors have choice these products are available across our platforms, and ultimately, i think the market will decide how and whether there will be -- continue to be the number of similar products available. >> and these haven't exactly tracked the price of bitcoin when you look at one of the charts, bitcoin is down 14%, but then you look at fidelity or black rock's etfs and they're down 16% when can we expect these etfs and the pricing to more exactly mirror the price of bitcoin? is that going to happen in the next weeks or months maybe >> so all of the products -- well, very similar in terms of the fact that they're offering access to the single underlying asset. they all do have different pricing methodologies or somewhat different pricing methodologies, which may account for some of the differential which the way the products are

tracking against a bitcoin pricing index. ultimately, as there will also be fees and expenses that will be incorporated, these funds, as with all other index products, will always have some differentiation from the underlying product >> fascinating time. cynthia, thank you for your time today. tyler, back over to you. >> kate, thank you very much we appreciate that coming up, tesla on pace for a sixth straight pace of losses. the street's generally is cautious on the stock, but one analyst sees 40% upside from here he'll join us next and not one but two c suite views on the health of banks both companies coming off an earnings beat, shares up 30% in three months the risk they see to the

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welcome back to "the exchange," everybody tesla shares on pace for the longest losing streak since 2016, but could today spark a turn around for the stock this phil lebeau here with the numbers and the narratives >> let's start with the numbers,

because this will be -- this will drive the stock immediately after the release comes out after the bell before the earnings call. you're looking at eps of 73 cents a share. the gross auto margins, if it comes in north of 15.7%, that may give some relief to the investors trading after hours. free cash flow coming in, $1.67 billion. that in terms of the narrative, it's all about the 2024 production guidance, delivery guidance what does the company say in terms of what it expects to deliver in the coming year most believe it should be about 2.1 million. there's also this report that came out within the last 24 hours that they are planning a new lower cost model, not sure that they'll get into that on the conference call. elon musk has said you have to get to that lower market as much as possible. that's where the real growth is going to take off. as i mentioned, in terms of ev

share, tesla, it still dominates this market. i get this question from people all the time they still have 50% of the market, but its dominance of evs is eroding even as it grows ev shares and sales here in the united states. of course, so much of what drives the conference call tonight with elon musk, as you take a look at shares of tesla, it will revolve around what he's seeing and what the company is seeing in china. do we have a sense that the price pressure and cuts might be easing up a little bit he'll say nobody knows for sure, but that was the case a couple of quarters ago, tyler, that people thought well, okay, we came out of the call and think that perhaps the pricing pressure might ease up a little bit in china not the case they're still cutting prices not as much as they were earlier in '23, but they still had to cut prices in the sfourfourth quarter. >> phil, thank you very much more analysts are turning bearish on the stock, including red burn atlantic, initiated

with a sell today. morgan stanley's jonas slashed his price target, citing oversupply and a slowdown in global ev demand he sung the lyrics to that ev sales in the u.s. have been in a steady decline since april of '22 as you can see in that chart. despite all that, our next guest sees a 40% upside in the stock from here. let's bring in our analyst i should point out, maybe we can take a picture of that chart on the wall over there. can you pivot that thing look at that they have doubled production in two years. what are they going to do this year >> i think it's going to be 2.1 million is where consensus is. i don't think that's that unreasonable >> they're doubling every two years there. >> but i think that's to be expected we're in a lull, right but the expectations have come down quite a bit

>> i've been transparent in saying i drive a tesla, and i would go into fuller detail. i do like the car a great deal your argument or part of your argument long-term for tesla is in robo taxi self-driving, autonomous vehicles that will be used for ride pickups and so forth. i am an autonomous drive skeptic. you have to convince me that those cars are going to work, that when there's construction, they're going to know what to do and not just stop there with people behind me honking at me, while i'm trying to get to my meeting across town. >> so first question i would ask, have you tried fsd, the -- >> no, i have the -- i didn't spring for that. i have auto pilot. >> try fsd i think it's the best -- >> will they give me a trial on that >> probably will for you other people maybe not but it is the best consumer product since the iphone it is an incredible product.

80% of the time it's driving for you. it's amazing i think when they lower the price -- >> you've been in one of these cars >> yeah, yeah. it's driven me a lot and i would say it's an incredible product i think the reason is people don't realize that it has such a low attach rate, only about 5% of owners pay. >> it's thousands of dollars >> what if they lower the price, the tax rate explodes, and people realize how amaze thing product is i think they're reluctant to do it now because of the liability issue. >> that's what i was going to say. two things that hold me back one is government approvals. gm, all these others, and insurance approvals and liabilities. that's another big issue here. >> yeah, there's a lot of knuckleheads who will hang a string to the brick and go in

the back seat to take a nap. tesla is worried about that. they want the product so good that the regulators not only are okay with it, but mandated and we're hearing about that, the legislators are realizing that a tesla autopilot is five times safer than a regular car on the street in terms of accidents >> with a cab driver you're talking about kabs here so these robo taxis are going to be smarter and safer than a regular car service that i take or a street cab i take >>absolutely we know just the regular autopilot is five times safer than a human a robo taxi would be even more, because that will use -- the software will be even better it uses machine learning this is years away i should stress, but the extension of where we're headed, this is where we're going. >> yeah. i want to get to the idea of where you see the stock going, and maybe you can wrap that into the answer here. one of my nitpicks with the

automobile, and i think it's one of the reasons why hertz i saying we're getting so many high claims for damages on these cars, is that tesla has really invested 100% in the utility of the touchscreen. if you're driving, and you have to go to a touchscreen and go down here to find where the radio is, and over here to find where the wind shield wipers are, your eyes aren't on the road >> i find that annoying, as well >> sometimes buttons and knobs work better. >> i think the idea is, and again, i would urge you to try fsd. when the car is driving most of the time and you are only driving when something odd is happening, you're okay with a touchscreen. most of the time you will be free to use it >> where do you see the stock going over the next year >> look, i do agree that it's going to be challenged this year there's not a lot of big catalysts. but it's down $180 billion in

market cap the last three weeks. i know our price target is 40% of where it is today but that's because it's been down so much i think a lot of the negative news that's already out there is in the stock i don't think it will be that hard to get to that 2.1 million guidance number. that's what will drive the stock. remember, this is a retail owned stock. and folks in that community are looking at ten years out, 20 years, 30 years out. they're not looking at it as a car company but an autonomy company. >> tom, we'll have you back. >> try fsd >> i'm going to call them and see if they can get a deal coming up, netflix having its best day since october i am too actually. after beating the street estimates for subscribers and revenue, but is the streamer truly a bellwether for big-tech earnings we'll look at what last night's

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news update. joe biden expected to pick up a key endorsement today from the united auto workers. three people familiar with the decision saying it will likely come this afternoon when the president addresses the union at a conference in washington last fall, he became the first sitting president to join a picket line during the uaw strike eight of the nation's most prestigious schools have agreed to settle a case alleging they conspired to limit financial aid packages of some students while favoring wealthier ones. the schools will pay more than $110 million into a fund for students suing them. but the settlements will need to be approved by a judge comedian jon stewart is going back to "the daily show. comedy central announced he will host episodes on mondays through the 2024 election cycle with others filling in for the rest of the week. stewart originally left the show in 2015.

tyler, over to you >> that should be interesting to watch. kate, thank you. coming up, a check on the pulse of the consume we are a pair of regional bank ceos their views on interest rates, lending, and the fed "the exchange" returns after this [disconcerting stomach gurgle] not again. maybe i should get this looked at? [suggestive stomach gurgle] zocdoc? [talkative stomach gurgle] you're right, i bet they deal with this all the time. dr. finley really puts you at ease. let's do it! you've got more options than you know. book now.

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welcome back to "the exchange," everybody concerns about a bank crisis luckily have not panned out since the march '23 collapse of silicon valley bank, with the spdr regional bank etf down just three quarters of a percent. but some smaller banks have felt a bigger impact of that turmoil. since we're in the thick of bank earnings, let's get a check on a couple of them we have two ceos joining us today. first off, david zalman, and jose raphael fernandez of ofg bank corps, which operates in puerto rico. dave, prosperity shows a little lower today, despite an earnings beat and taking a hit which caught a lot of banks, the fdic charges traceable back to silicon valley bank. that was a few cents off of earnings, wasn't it? >> right i think we posted earnings around $95 million

if you took out the fdic assessment we have to pay to cover the silicon valley bank and signature bank, it would have been $19.9 million. so after taxes, it would have been about $111 million, i think. >> you have like 285 full-service banking operations, of which i guess 90% are in texas. the texas economy is doing good, so your bank ought to be doing great. >> the economy is doing good obviously, interest rates has impacted the loan volume a little bit on the other hand, the economic activity and the job growth still remains extremely solid. so a very good economy, no question about it. >> so that was one of the things i wanted to point to, and that is i guess is it loan volume, is it the number or amount of loans

down a little bit, and that you trace back to rising interest rates and people sort of being more cautious and not taking on as much debt >> if you look at our particular situation, we actually increased loans by about 12% for the year. part of that increase came from an acquisition so if you took the acquisition part out of the take there, basically we would have had about a 4.9% increase in loans year over year in the third quarter. we had a decrease in the third quarter, which was natural we tell most of the people that we would get about a single to mid digit growth in loans per year that's what we ended up doing. >> i guess the number was total loans down 1.2% quarter over quarter. is that right? >> yes, and that's in the third quarter. it comes back to what i was saying

you did see as interest rates increased, you did see borrowers kind of be more hesitant, watch what they were borrowing, even your commercial industrial customers, where they had a lot of money in checking accounts instead of paying the high rate, they elected to pay these things down again, having said that, we still are looking for growth next year at the same time for the first part of the year right now where we're at, we still will see growth more in the second half of the year. >> prosperity has this mass cue lar presence in texas as i mentioned, also in oklahoma. where will the growth come from? will you add stores in texas, oklahoma, will you go into louisiana, where, what >> you know, we really have, with the 290 stores that we have, i think that we have enough stores. we'll probably do two things

we do mergers and acquisitions, so that will always be part of our story at the same time but the state of texas is growing so much, and oklahoma, that just the growth from the people that are coming in, the job growth and people having new homes and people starting new businesses, the infrastructure that you have to put in for all this, so with the growth coming in, it almost has a natural growth to itself, because so many people are moving to the state. >> it's really a demographic push, i guess, is what you would call it, of population and migration. thank you so much for being with us today appreciate it. >> thanks for having me. >> we'll have you back thank you very much. love to touch base there let's turn now to ofg, it beat on the bottom line you get better results when loan growth is high and expense is down shares higher by 2%.

jose raphael fernandez is the community banker of the year in the most recent year congratulations on that accolade you deserve it, i'm sure way to go. >> thank you, thank you, tyler great to be here >> glad to have you here what's clicking for you? >> oh, we've been very fortunate. puerto rico's economy has been doing very well. we have grown our loans very steadily, thanks to a very good environment on the island. more importantly, i think growth comes from us being very intentional about investing in technology, investing in our people, and for the last three or four years, we have leveraged technology to bring into our markets leadership in terms of technology that has definitely made a difference in the experience of our customers, particularly on the commercial side of the equation we have been doing some good growth >> puerto rico's recovery economic activity index up 6%

through november of 2023 you have steered this bank for a long time, right about 20 years, 19, 20 years as ceo. you've seen the good and you have seen truly challenging times in your -- in the commonwealth how did you lead this bank through those difficult times through the periods of real economic dislocation andpain for many of the communities and customers you serve? >> so the word i use is being opportunistic. at ofg, 20 years ago we were a small $1 billion bank, and we had pretty good capital base we leveraged that, and bought a failed bank, then acquired two international banks operating in puerto rico in 2013 and 2019 so we became the third harmest bank on the island -- largest bank on the island and leaders in consolidation that helped us tremendously.

now we're doing the blocking and tackling and doing the organic growth as we have the critical mass, we have 42 branches on the island, leveraging with technology and all that has just allowed us to grow our customer base, have increased critical market share. so yeah, 20 years of which 17 were a downturn. but we deployed our capital and managed our capital very effectively. and now we're wreeping the benefits >> where is the small growth coming from? >> particularly on the commercial, small and mid-sized companies and auto lending here in puerto rico, there is a good opportunity for us to grow the auto business, and we have done so for the last two, three years. but the maybe growth is small and mid-sized commercial loans >> and they are expanding businesses, starting new businesses, rebuilding, et cetera, everything >> correct

as you know, puerto rico's economy is rebuilding from the hurricanes and the earthquakes, and that is definitely created a tremendous momentum in the economy. you're seeing private capital coming to the island to invest internally and from outside. so all those are good data points for us. we have record unemployment, and the economy is growing manufacturing is doing well. so it's about time and now it's nicer to be a banker in the last 17 years, i'll tell you that much. >> been there 20 years, 17 were trouble. but we're happy for you and your associates and the people of puerto rico. jose raphael fernandez, the community banker of the year of american bankers award we appreciate your time. coming up, netflix shares surging on a revenue beat, strong subs, better than expected first quarter guidance. what could netflix tell us about the rest of tech earnings ahead? that's next. "the exchange" will be right back

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netflix shares are higher after the company added more than 13 million subscribers and beat revenue estimates at least 19 wall street firms hiking price targets for the streamer so what does this quarter tell us about some of the big tech earnings still to come diedra bosa joins us now >> hey, tyler. so obviously the mega cap very different businesses if netflix tells us anything, it's this, keep it simple. what are the characteristics of that if you are a mega cap netflix has one, organic growth. it had accelerating revenue, which is important when you look at an apple, which has seen decelerating revenue it's an industry leader, and it has high margin logical areas of growth

they put it like this, moving into advertising, live entertainment, wwe rights, video games, not far out other bets. other bets implies like an alphabet we were talking about this yesterday, their moon shot factory where they have radical ideas and they're personing through billions of -- burning through billions of dollars each year wall street appreciates a more straightforward story. other mega caps, a meta comes to mind, it is an entry leader. it has those targets behind it it's increasing, and on the flipside, a more noisier story might be an amazon, where there's still questions about the ai strategy and aws growth so that sort of is what we could see as we get the rest of the mega caps reporting. >> very interesting. simple is better thank you. coming up, the nyse airline index down nearly 9% over the

past airlines month, as boeing planes face increased scrutiny we'll preview results from america, southwest, and alaska big blue hasn't missed on earnings once in 20 quarters and the street is watching for tradedown in mccormick results and as we head to break, here is a check on the dow at session lows the five-year auction may be weighing on stocks you see how it's slid in the last 45 minutes. i'm gog te psollintoakiternay. ♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring

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>> welcome back to the exchange. after earnings season rolls on we are looking at carriers. and here we have danielle shay. nice to see that fire burning behind you. let's start off with ibm. the a.i. hype has increased the appetite for tech consulting. the firm

is a bit more cautious on the hardware side. your trade on ibm? >> tyler, i think it has traded mac instantly. you can see the last three quarters they beat estimates three times in a row. that builds to a positive trend. i will tell you the stock is incredibly extended going into the earnings report. for that reason i do not like to make a bullish earning trade. even though i love the trend, i think ibm is going to go back up and retest previous highs. i would like to buy this on a pullback. i think that you would have a much better and she got in around 160-165. i am eyeing for a pullback. >> be opportunistic, thank you. moving on to mccormick. sales down 16% in the past year.

while more consumers are turning to private labels continued at home cooking is a tailwind. it certainly is in my home. danielle, you just don't love the taste of mccormick. i love frank's hot sauce, man. >> i do not like the relative weakness. we see what the stock has been doing, especially compared to the nasdaq making a new all-time high. you have mccormick continuing to trade lower. i also do not like the way it has reacted to the last couple of earnings reports. it is very inconsistent. with this stock as well, i prefer to wait until after earnings. we are up against a lot of resistance between $70 and $75 per share. i think if we get a rally up in that zone that is going to be a much better place to short and trade back down to $60.

>> american, southwest and alaska are reporting before the bell shares of all three being hit over the last year. alaska is the underperform or hear following that replug blowout. the boeing ceo meeting with senators today to address that incident. just one day after united, the only other airline that flies that airplane, the boeing max 9 projected first quarter losses. are the carriers low enough to buy here? >> i wouldn't buy these with my money. the long-term trends are not good. they make it through earnings relatively unscathed, but when you look at the longer-term trends they are down. there are a lot of issues right now with airliners that are going to continue to impact earnings for the next quarter. with these stocks, i think at least at minimum they are going to hold. i would advise them. i would prefer to look for spots

, especially boeing. you have earnings coming up. you are likely to have investors bailing. i think this one is in a great spot to short between 215 and 220. >> that is where i was going to go, what has all of this meant? let me just say boeing has had a lot of issues over the past four years. they bare on safety. that cannot be comfortable for that company or its customers. >> that is correct. oftentimes we have airliners reporting earnings, let's say they rally into resistance tomorrow or even worse, they don't do well. a good proxy trait would be to trade boeing. if they do not do well and boeing has earnings upcoming a lot of the times as the investors bailing on the stock. just like you have tesla

investors bailing on the stock prior to earnings. this could be a good short-term tray just prior to the event because of those ongoing issues. >> danielle, thank you so much. we will have you back soon. all right, don't miss been minicucci who will discuss max earnings and boeing right here tomorrow afternoon at 1:00 p.m. eastern time. the dow jones high by about 31 points. nowhere like it was about one hour ago. perhaps that five-year auction was what has taken the wind out of the sails of the dow jones. that is it for the exchange. coming up, burritos and benefits. we will dive into tripoli efforts to attract and keep younger workers. contest up your -- contessa brewer is getting the guacamole ready. i join her on the other side of

the break. four

oh no, a rash. maybe it'll go away. awww, how am i going to find a doctor i'll actually like? is that a qr code? dr. stafford makes you feel at ease. thanks rash! you've got more options than you know. book now. >> welcome to power lunch, everybody, alongside contessa brewer. dave calhoun basin questions about boeing safety procedures. elon musk facing investors as tesla reports after the bell. >> presidential politics, is trump-by linda siegel a certainty? if so, all of the big money that has been behind nikki haley, with the move to donald trump as he