higher. >> long above 160. what have you got? >> watch the ten-year. meta and microsoft running in the show, too, and we'll keep our eyes there and fed meeting and i'll see you on close clo "closing bell." starts now. in for kelly evans, i'm tyler matheson and here's what's ahead this hour. we have the jobs report and the fed decision on interest rates and the cut is not widely expected right now and one of our guests says not cutting now is a big mistake and he'll tell us why. plus north carolina state health plan will stop paying for the obesity drug coverage that it had been covering and that may issue good news for one company and the ceo of that firm will join us ahead and red sea disruptions could drive demand for one area of the commercial

real estate market. we'll tell you where, but we begin with today's markets and dom chu. he's got the numbers. >> hi, don. >> we have a fairly relatively calm market for the s&p 500 and it's been a relatively tight trading range and it's currently one-tenth of 1%, 4896 the last trade day and we were up 11 points at the high and down three points at the lows of the session and tilting toward the middle end of the trading range and down 0.1%, and 38,075 and the nasdaq composite pacing an advance up about one half of one percent and the last trade da. it has since faded has been the crude oil market. we saw some highs that we haven't seen over the course of the last couple of months on u.s. benchmark west texas intermediate. it's currently down 1.5%, but it was solidly higher earlier on today on some of those middle east tengs kind of starting to

incrementally get more intense with soldiers dying from the u.s. side of things in jordan, close to the syrian border. that did push those crude oil prices higher at one point, but as you can see they've backed off from those levels and we'll keep an eye on crude oil. as tyler mentioned, massive week for earnings and corporate earnings wise it will be the busiest week of corporate earnings for the s&p 500 and the heavily weighted ones will factor in the most. on tuesday and thursday, you're going to get earnings reports from the likes of the magnificent 7 type stuff like alphabet and the parents company of google and each of those stocks will have their spotlight on them throughout the course of this week. so ty, keep it on the mega-cap technology trade, a big factor in those fundamental catalysts either up or down for the markets in the coming days and weeks. >> see you here in the next hour. >> meantime, investors have their hands full with earnings this week, but we're only 48 hours away from the fed's latest

decision on interest rates and steve liesman is here to set the scene for us, steve? >> hey, tyler, one way to think about the fed is this, they've done the final maneuvers and it's now in mid-air to execute the landing and no one quite knows if they're going to stick it. judged by the inflation number so far and the past few months the routine has gone pretty well and all three major gauges and the pce headline and core services are at or below 2%. the six-month annualized core rate has been below the fed's 2% target for two months running now, and all of that has come surprisingly with growth above potential and the unemployment rate barely budging. so why not cut rates right now? judging by what they've been saying from that immediate cut is concerned about the sustainability about the decline in inflation and growth and employment still remaining strong and we're particularly concerned about wage growth and risk from the middle east conflict which could lead to a

new inflation surge so far. the fed, most of all, doesn't think it will help the credibility or the economy by cutting rates and having to reverse course and hike again, so it wants to be very sure. the markets have given the fed some flexibility and it's a 2% chance of a rate cut at this meeting and 49% for march. that is down from the near certainty of around 80% at the last meeting. you can see that certainly rises all of the way to 99% by june for that cut. it's full of uncertainty. strong growth could give it time to execute the soft landing, but rate cuts have to work into the economy and you still have those past effects of rate hikes still dragging on growth, and you can do a routine, tyler, a great routine, as you know, but if you blow the landing tide you can end up off the podium. >> let's talk about the global tensions that you mentioned there. how does the fed weigh such

things as disruptions as shipping in the red sea that could a fed oil prices and certainly the price of goods coming to market? >> you know, there's a little bit of just concern that you know, we're having deja vu all over again. the rise in shipping costs was part of the recession -- part of the inflation that happened in the post-pandemic era and the issue, tyler, i think they'll see this for now, at least, as being isolated. they'll watch it for a while. i was really interested in dom's report because we do keep seeing this that you have these spikes in the price of crude and then they come back down, and i think we talked about this, but the story again is the amount of domestic production we have in the u.s. that seems to keep a lid on just how far up oil prices can go, but the fed's going to watch it and there will be concern about some of these higher oil prices again feeding into certainly the headline and it feeds into the core. >> steve, thanks very much.

we'll wait and see what happens on wednesday. probably nothing, but it will be interesting nonetheless. steve liesman, thank you. >> our next guest says the fed should be cutting rates this week, but they won't. he sees the ghosts of the '70s and 2021 haunting jay powell and warns this a late pivot could lead to an even worse horror story. you've got the picture? joining us now is tom fitzpatrick manager of insights at r.j. o'brien. welcome. what are the historical illusions back to the '70s and 2021 that have you believing that the fed will misstep here? >> hi, tyler. thanks for having me on. >> you're welcome. >> i think when you go back to the '70s and the start of the cycle, the fed and for a lot of people for that matter focused in on the '70s because that was the last big inflation surge and there are differences and similarities in terms of the middle east conflict, but when you go back to the '70s we saw

the oil price 17 times so it was very sticky for a long period of time and that was the reference point the fed was using in terms of their past mistakes and the fact that they didn't get inflation under control and this came after 2019 when they were also talking about the mistakeses that they made during the global financial crisis and not easing quickly enough and choking off the jobless recovery too early. fed policy is a function of adjusting for prior mistakes. we saw that in 2019 when, in fact, they were very impulsive in starting to cut rates and cut aggressively during covid. as they said that they should do, but unfortunately, that was actually very successful and the mistake then was that as we saw inflation wise and in particular you saw three month annualized inflation rate just as you saw now move up, the fed having been

very successful and seeing the economy pick back up and the markets pick back up and the employment pick back up and the board made those comments earlier this week and therefore, as a consequence, when we sit today and we see exactly the opposite as was mentioned earlier and the six-month annualized rates coming down. when you see the employment report maybe not as strong as it would be, and for the unemployment rate and as we see a situation when nominal growth is falling, it's clear that interest rates are way too high now. they won't cut obviously this week. we've said that already, but they have everything in the arsenal to argue why they should cut in a preemptive fashion because history clearly shows that when you wait too long the impact of monetary policy changes and you get caught behind the curve, and i think if the fed does wait too long they will get the same situation again. >> so what i sense you saying

here is that higher for longer that phrase is the new transitory that inflation will be brief and unsustained, and the risk here just as it was, i think you would probably argue, in the period of the transitory phase is that they wait too long to take the appropriate action and in that case, they allowed inflation to take hold at a greater level than it otherwise would and in this case, it could be to slow the economy past the stall speed. >> i think that's 100% right, tyler. when they re-visited monetary policy in 2019, they realized that being preemptive was very important in making sure that the least amount of damage was taking place, but we know they don't want to make the same mistake twice. the mistake they made in 2021 was not getting inflation under control. so it's not a level playing

field, and they've said that themselves, so i don't think they've said anything new. they've said that at the margin they would prefer to be too late rather than too early which almost guarantees, unfortunately that they would be too late. >> let's talk about -- if they listened to you and they start to cut, say in march, how many rate cuts would you anticipate this year or do you think they'll be very patient and surgical and wait and see what happens? >> how far down do you think rates could fall this year? >> if they go early, obviously, on the mantra of going quicker, that should help and could possibly allow them to be more cautious in terms of cutting rates. obviously, the market has been pushing for rate cuts well in excess of the fed itself and what we feel would be wanted and when we look at some of the charts we look at there are yields that are more consistent with an economic downturn than

they would have with a soft landing. i think the danger is that because we took rates too high and because we have held them up there and when you look at the feedback loop, inflation is low, but high rates have a lot of negative impact on the fed and the treasury in terms of its funding, et cetera. i think you're already filtering through and the soft landing dynamics of the savings rate and the employment picture are drifting away. so i think the danger is even if they start in march, let's go back to 2001 the first five cuts were 50 basis points each and we didn't have a deep recession then. the danger is we should be cutting and it will actually force them to do more, but it's going to be very much on the basis of whether or not this idea of a soft landing is true. i personally think that we're in danger of having something less

optimistic than a soft landing in which case, let's not forget as in the way up we shouldn't look at the number of rate cuts always presuming they would be 25. if things do deteriorate, we could get there a lot quicker with 50 basis point cuts without having to see the six or seven interest rate cuts that people are talking about. >> that is an interesting approach to it. in other words, you do fewer, but you do bigger. >> you have more between each of them, of course. >> thank you very much for being with us today. we'll have you back soon. >> tom fitzpatrick of r.j. o'brien. north carolina cutting coverage for obesity drugs in the state-sponsored health plan and it can open the door for drugmakers to benefit and you'll speak with one ceo who is banking on that one. plus, one analyst says shipping disruption could drive demand for commercial real estate right here in the u.s. she will join us to connect the dots and tell us where investors might find opportunities as we

head to a break. here's a look at the dow near session lows and erasinging a 61-point gain and now down by 33. the s&p and the nasdaq still in the green for the day ever so slightly and the ten-year yield 4.1%. "the exchange" returns in just a moment. ♪ this is "the exchange" on cnbc. (ella) fashion moves fast. setting trends is our business. we need to scale with customer demand... 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. [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.

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welcome back to "the exchange," everybody. patients taking weight loss drugs such as wegovy and zepbound. north carolina will stop paying for obesity drug coverage as the costs soared to $100 million last year. in 2021 people were taking weight loss drugs, but last year it paid for nearly 25,000 people. our next guest runs a company that is hoping to capitalize on some of that news and make some of these people its clients. george hampton is the president and ceo of curax pharma. mr. hampton, good to have you with us. >> happy to be here, tyler. >> you say among other things this is going to hurt patients in north carolina a great deal, but it may not really affect your company. it might even help it. explain. >> obesity coverage is pretty rare. it is only one-fifth that commercial patients have obesity coverage and cms currently does

not cover obesity at all and so we've stepped up back in 2019 and created a cure access program where patients can receive the product for $99 cash per month and that's 70+ percent of our business and we're trying to bridge this gap between lack of access for patients suffering from obesity until a time when the insurers and the government comes around and starts covering. >> your treatment is a pill as opposed to some of those well-we well-known rather than zepbound and wegovy. what have the results been with the pill? in other words, what does the patient lose in terms of weight? >> this has been around for some time. and in our clinical pivotals that are on the package label patients lose up to 25 pounds, 4.4 inches off their waist and up to 11+ percent of their body weight and it's a very effective

medication. >> the coverage of medicines depends in large part, doesn't it, on the declaration that a condition or an affliction is a disease. is obesity a disease or a condition? >> obesity is a disease. it's defined now as a disease. unfortunately, we as a society do not yet treat it as a disease. that's becoming more and more pref ne prevalent and started to treat it as a disease in recent years, but we have a long way to go. >> does it appear or how does it appear that sometimes insurers or programs push patients to the most expensive treatments rather than the less expensive treatments? am i right or am i full of it? >> i think you're right selectively. i think the healthcare system in

general has done a great job. society in general has done a great job of controlling diseases cosy, hypertension, type 2 diabetes, s with the most expensive medication. for whatever reason, obesity is brand awareness and just the lack of understanding of obesity as a disease and certain health plans and certain states like north carolina have decided to start with the most expensive medication which is contrary to how we as a society treat -- >> why is that? you mentioned something that occurs to me and that would be effective marketing on the part of pharmaceutical companies either to practitioners, mostly to practitioners, but also on the airwaves like cnbc ority inially nightly news where the drugs are taeszed. >> these new meds are exciting. it will make a complete sea change in the ability to treat obesity and they have their place, but as you look to europe and we see europe three or four

years ahead of us, they don't let anyone first line have the most expensive medication. you actually have to go through what we would call step here in the united states and what they call in europe more therapeutic-based rationale or value-based type of approach. i think we'll get there. this decision in north carolina points out we -- we're behind and we need to learn more about this disease and as society figures it out we won't have to take drastic measures like banning all obesity medicines and not covering them all. >> so your drug, your medicine, what is the branded name of it? i'm sorry. contrave. >> contrave, its results are comparable to gop1? >> there's not been a head to head study so we have not compared them in trials. the gop one is most effective to driving weight loss and it's

similar to other states. people with obesity don't start in class 2 or class 3 or severe obesity, right? they work their way over time and the disease progresses over time and as a society we fail to intervene when the people are early in their disease state and there's an opportunity to start curbing this disease early with cost-effective medications and for those people who are further in the state, start to use the most powerful medications. >> so i asked is obesity a disease or a condition, and you answered emphatically a disease. what is a disease as opposed to something that is more benign, i suppose, a condition? >> well, i point you to dr. costa at the mayo clinic who has done an incredible amount of work in this topic and he can identify four different types of obesity. the underlining type of a patient that they'll be more likely to be obese over time. so when we can identify that

it's very similar to the way we diagnose hypertension or type 2 diabetes or any of the other chronic diseases and we're still learning a lot about obesity. >> i am skipping around a little bit and please forgive me, george. could your company develop one of these gop1 drugs? are you working on something like that or is it generation contrary to the drug you have? >> gop1 pipelines are rich in clinical development. there are seven, eight, nine of them right now. the two largest companies lily and novo have the market and it's not our intent to develop gop1s. our product is different than gop1s and we're investing in manufacturing sites around the world and we think that would help patients be significantly more successful with the product. we like the space we're in and we like the way our product works and we have a long gop life and we think they'll be

just fine without us. >> thank you very much, george. we appreciate your time today. thanks for answering my questions. george hampton of curax pharmaceuticals. coming up, we are kicking off the busiest earnings season with a look at three under the radar names including this one. it's a key barometer for the economy and excluding airlines, it's the worst name for the transports over the last year. there you go, i said it. the worst non-airline transport stock. we'll reveal it ahead, plus alphabet shares are trading ahead of an all-time high ahead of tomorrow and we'll show you what the street is lki o oongut for and one company. i felt that my memory was beginning to decline and that's when i started looking for something that would help. when i first started taking prevagen, i noticed my memory was so much better. just stuff seemed to come together

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and that will cap the stock. remember bank of america initially downgraded the stock from buy to neutral last month saying hydrogen expectation are too high in the near-term. shares are down 26% since that downgrade and on pace for the worst month in nearly two years. on the flip side, here are some of the names hitting all-time highs and there are quite a few. uber is one and chipotle is another and ross and autozone, all-time highs and now to pippa stephens for a cnbc news update. hi, tyler. the former irs contractor who leaked donald trump's tax records to "the new york times" was sentenced to five years in prison today. prosecutors say charles littlejohn had abused his position and weaponized it for his own political agenda sharing private tax data to news organizations. littlejohn said in court that while he was sincere in his belief he made the decision knowing he would end up there. japan's new lunar lander, r

out of electricity because its solar panels were at a wrong angle due to a tumble after landing on the lunar surface. while she's nominated for her tenth grammy nomination, joni mitchell will perform at the awards ceremony for the first time as the muse igsz slowly returns to public performances after suffering a brain aneurism in 2015. tyler, back to you. >> some wonderful songs from joni mitchell. i remember them well. all right. coming up, one area of commercial real estate could be a surprise beneficiary from the shipping turmoil in the red sea. we'll speak to one analyst who will tell us where. that's next.

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and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. welcome back to "the exchange," everybody. a record $144 billion worth of commercial real estate debt comes this year according to loan maturities will only continue to rise and estimated to hit 3 trillion by 2028. those eye-popping numbers increase the possibility of default since owners are forced to refinance at high are prices

and that is weighing on some of the commercial state players and colyers down about 6% so far this month, but the company still sees plenty of opportunities out there even in the distressed office segment. joining us now for more in an exclusive interview is gil borak with colyers latin america. thank you for being with us. >> thanks. good to be here. >> are we overstating the debt, maturities and payments that are in the pipeline? >> i think so. there's no question that there's going to be distress coming. the signs are all there, but we think we will see banks and other lenders continue to work with borrowers to work through the situation, and we've seen that historically. the sort of a doom and gloom and it's not to make light of it, but it is to say that there are pathways that will be less

drastic than maybe what we're hearing in the media today. >> i guess some firms and banks have worked out extensions of debt and leases. that would be one way to mitigate the problems, am i right? >> that's correct and we've seen a good bit of that in 2023 and we've started to see repricing of buyer and seller equilibrium which also helps in terms of starting to move fol up and it's a more realistic take on pricing and certainly helps the market. >> so while there may be some distress i hear you say don't get overwrought over it. >> that's correct. and also, you have to remember that certain sectors like office which have a secular issue since the pandemic will be more impacted than other sectors like industrial and multifamily where the fundamentals are much better. >> yeah. let's talk a little bit about that because when people talk

about commercial real estate, they're inclined to think of it as a monolith. it definitely is not. there are all different kinds of commercial real estate. i suppose the one that has attracted the most attention and the most concern in recent years has been office. tell us how that is faring. >> that is correct and that obviously was against the backdrop of the pandemic when folks were forced to work at home, but over the passage of time now, we're seeing a normalization in office. it's not to say that we've gone back to pre-pandemic levels in terms of office attendance and everybody knows that that hasn't happened yet, but we do see folks coming more to the office whether mandated or voluntarily for cultural reasons and that's pretty common that you'll see folks coming back for the culture in the office and the collaboration in the office and as the economy has slowed, employers have been more likely

to mandate return to office because there's not as much competition with other companies that might be more flexible. so it's stabilized. >> i'm thinking, too, that the office market is highly localized. in other words, it may be immensely healthy in houston where my friend and colleague of yours does business or in miami, but it may not be as healthy and robust in san francisco these days and there's the difference between class a and class b properties. >> you are absolutely right. even through the pandemic, just through different cultural phenomenons in parts of the country. the south was always stronger. there was always more tense even during the pandemic in places like florida and texas and less so on the coast and that has continued. we do see variety across the country. san francisco, you mentioned, is obviously one of the weakest

office marks beets because it wasmore from home and it depends on the industries and the locations for sure, but in general, we are seeing improvement in terms of return to office across the board. with regard to asset classes there was a flight to quality, class a and even high-quality class b and good locations and maybe refurbished class b is also more popular than those that are outdated like lower class b and class c. the flight to quality if you take scities like new york and they don't have any issues and they're new and high demand for those types of spaces. >> we'll have a guest in just a moment that will talk about industrial properties. i don't know how big colyers is in that area, but certainly warehousing and data centers and those types of properties seem

to be doing very well. >> yes, that's right. they did extremely well during the pandemic with the rise in e-commerce and have continued to do well. there is a bit of a pullback, but it's not a pullback relative to historical norms. the industrial markets are still quite healthy. it's just a pullback versus the extreme, frothy markets in '21 and '22. >> gil, thank you very much for being with us. gil borok ceo of colyers of latin america. we thank you for your time. >> thank you. >> thank you. we will stick with commercial real estate as i mentioned there in a particular segment that could see an uptick in demand because of those ongoing tensions a million miles away in the red sea. joining us now to discuss is lisa deknight joining us from newmark. thank you very much for being

with us. >> thank you. good to be here. >> you heard how gil characterized the commercial or industrial space that you are here in part to talk about. do you agree with what he said that in other words, it's healthy though maybe not as frothy as it was in the pandemic years? >> i think that's a perfect characterization, with the end of 2023, we were at 5.5% vacancy nationwide in the industrial market. that is a substantial increase from where we were, at all-time record lows during the pandemic, but it is still well below the long-term vacancy rate and we are in a very healthy spot. lisa, our producer janet chen was trying to explain to me the connection that you see potentially between commercial properties and industrial properties, excuse me, and the crisis or the war in the middle east and the disruptions of shipping in the red sea. can you explain it to me. >> i'll do my best.

so what we have essentially happening now is geopolitics is a economic efficiency as the primary driver of goods through the global supply chain. so what's happening in the red sea with the suez canal is coinciding at the same time that issue isaround drought-related conditions in the panama canal are causing two critical arteries of trade to experience loss of disruptions. this is driving up maritime transit times and costs, and a general, global instability in supply chains is in the long term further incentivizing a make what you sell paradigm in the united states and in partner countries. there are short-term implications, as well that we can talk through, but the biggest takeaway from what is happening in the red sea, what's happening with the panama canal is this is yet another set of circumstances in a long chain that we've seen over the past few years and it's going to be

driving more domestic manufacturing growth, and i think in 50 years' time we'll be looking back at this early 2020s moment as the dramatic moment where a shift in where goods are produced in relation to where they are sold takes place. >> make what you sell. >> there are also incentives in some of the recent lgegislation and the ira to do that and revitalize domestic manufacturing. i guess what i'm hearing you say in part is that -- is that companies, whether they're manufacturers or retailers, whether it's a costco, they don't want to get caught with no inventory because of disruptions, so they are, a, buying from domestic sources and b, they're warehousing inhave not or so they're not caught without it.

am i right? >> you said it perfectly and i'll add to that. diversification of gateway ports of entry are really important here and it's driving industrial demand across the board. so if shippers need to react -- reactively, i suppose or proactively in terms of global supply chain disruptions. if you have logistic space in multiple port-serving markets across the country, you are able to pivot and be able to bring those goods in and bring them to the end consumer quicker. it's a good mitigation strategy. >> so one of the things that i suppose we should be concerned about with the issues in the red sea is possible inflation as shipping costs rise, it's true, isn't it, that goods costs are going to rise? >> this is something that we're paying very close attention to and a really good metric of

global shipping costs across the board is the baltic index and the baltic index is showing around 153% increase from the end of december to present day, and i think the main concern is that there's really no indication as to when these particular set of disruptions to areas of trade will be resolved. so that the longer that this persists, the more likely that these costs are passed on to the end consumer and i'll add one more thing because a lot of times goods do not have the luxury, let's say, of waiting for a much longer travel time around the cape of good hope instead of going to the suez canal, a lot of rooms are having to pivot to airfreight to get goods to the end consumer on time. airfreight is about five to ten times more expensive than container shipping. so there are a lot of cost increases that depending on how

long this persists could have an impact on inflation. >> lisa, you explained that so clearly. i'm very happy. now i understand it a lot better -- >> i am so glad. >> if this managing director thing doesn't work out you have a future in television. lisa deknight, new mark. >> thanks for having me. >> google search saw no impact from chatgpt and shares are up more than len%11% since that ree ask is that all about to change within with google repoing rtand we'll talk a look at how this could finally be disrupted.

a monster week of earnings for tech with alphabet set to report tomorrow after the bell. the google search dominance could be disruptive as new ai-powered search start-ups crop up. deidre bosa has that in today's

tech check. these start-ups truly do pose a threat to the dominance of google in search. >> it's a good question. how do you disrupt the business models of all time and it's more of an existential threat, i would say. google isn't going any time soon and they wonder if that could lead to google falling behind and the advertising disruptive. it may not be bing, microsoft's bing that google needs to worry about rather than a new crop of generative ai start-ups making a run. we talked about perplexity in the past and that's by the likes of jeff bezos and nvidia and another one just on the scene is arc. we searched paris olympics, and it read through six web pages and then neatly got them all together and laid out the dates and host city and news sports among other facts and no ads and a pretty clean user interface

and contrast that on the smartphone. you will see there is a list of twitte twitter or x accounts up at the top and this is more cluttered and it's harder to find and google's generative ai research and it gives you a cleaner response similar to that of arces, and google isn't willing to go all in and it offers it to all of the users all in and that could potentially cannibalize its business before it figures out how to incorporate search and what it's going to do with advertising. so, yes, these are very, very early days and neither of these engines perplexity or arc will mack a dent in the market share and it tells wall street how google search could be disrupted. >> one of the things that i found interesting as i have played around a little bit with artificial intelligence, whether it's barred or chatgpt is that it seems to excel when i ask me a question write me 500 words on the history of the conflict in

the middle east or tell me about why paris is a great place for the olympics, and things that are qualitative in nature in some cases. >> so what would you be looking for then? or i guess are you wondering what's the use case? where will it improve -- >> i'm killing time. i'm usually getting educated as opposed to actually finding something. >> right. you know, i was actually texting back and forth with the ceo and founder of perplexity this morning and i'm saying, who are you seeing really use your engine, right? same for me, i'm using it as an assistant or co-pilot and you can't truft it entirely and you have to go back and find the sourcing, but he said it's knowledge economy workers that are really using the app and i hear the same thing around san francisco and people who are using it are using it to replace the google search and it's not that it's that much better than google barred or chatgpt and

it's that the interface is so much better and i showed you the example from ark and it's just cleaner. >> i'm writing this down, deirdre. a-r-k? >> a-r-c, and perplexity. coming up, whirlpool has missed on revenue 11 of the past 20 quarters. the audio facing 4x headwinds. and trouble for u.p.s. we have the deiltas on all three of those earnings three of those earnings reporters, next. is. is it possible to help keep our online platform safe from cyberthreats?

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contributor. let's start with whirlpool where the shares are down roughly 5%. home improvement spending slowing. whirlpool cutting costs to urge margin pressures. what is your thought on whirlpool? >> our thought is that it is scoring the bottom for expectations. downgrading the estimates for whirlpool to the tune of 11% since november. also the profitability is in the bottom . revenue has been flat for 10 years. the margins are declining and supply calls are going up. we have a very negative view of whirlpool because we don't see a -- for revenue or profitability growth. >> sometimes, companies in the bottom decile are destined to stay that while -- way for a

while. let's move on to diageo. shares down 16% in the past year. who is not drinking? b of a downgraded siding a slow in sales in the u.s. in particular. you say that this is still a buy for you? >> it is. we saw some weakness also in the latin america markets, however, the profitability is in the top decile. it has a net margin of 22%. a very attractive 3% dividend yield and let's look at evaluation coming in at about 15 times which is well below the 20 to 25 range and also has 7% revenue growth. we like its strategy of focusing on high-margin, premium brands such as the vodkas and the gins. we think it is really well positioned as a company.

>> what about the trend that people are imbibing less and choosing other kinds of drinks? >> what's happening is they are also focusing on trying to take larger market share. believe it or not, even though it is one of the top brands, it only has about 5% of market share so what they are focused on is increasing that market share and the market is believed to grow about 9% per year so if they can expand their market share with a growing of 9%, it will still be a company that is going to generate free cash flow. >> let's move on to u.p.s. which was the mystery chart we shared earlier. shares falling 16% in the past month since reaching a deal with the teamsters and while berkeley notes it will be manageable, near-term means -- is there still opportunity at

u.p.s.? >> still opportunity. we are long-term holders of u.p.s. so what we are seeing is that even though, with the pullback in the last year or so, it still has free cash flow of about $.10 for every one dollar invested in capital. it has a very attractive dividend with a dividend yield of 4%. so we are seeing that they are focusing on the labor efficiencies and also trying to grow the global markets. so we see as a long-term investor that this could be opportunity to buy at these levels. >> thank you very much, degas wright, decatur capital management. management. that does it for thettin exchan. a consumer stock already up by 40. we will have the ame. don hsu getting ready. i will join him on the other side of this break.

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