welcome to power lunch, everybody. alongside courtney reagan, i'm tyler mathisen. record breaking, raleigh there is always something for the banks to worry about. we will stop losing in the past few, days could be in for a replay of that crisis from a year or so ago? and mega cap tech earnings. meta, apple, amazon all reporting today. it's a big day, can they meet lofty expectations? >> plus, the world's number one female golf pro will join us. she has a new sponsor and there's also a deal to beef up

the prize money for the women's u.s. open. we'll discuss that more. but first, let's get you a quick check on the markets here on this thursday. where higher across the, board that jones industrial average ice -- p 500 by nine tenths of a percent of the nasdaq leading the way, making up for yesterday's losses, up by about a percent issue. check out shares of new york community bank, down again today after losing more than a third of their value yesterday after the company lost money and slashed its dividend. >> he week to date down 43%. other regional banks volley for the second straight day in sympathy. phone bank can literally have sympathy for another. but the question is whether these issues are nyc bees alone or whether they could spread, as we saw with silicon valley bank. let's bring in leslie picker some analysis. leslie? >> that's a key question today. the fallout from new york community bank or continues. those shares, as you mentioned, at a yesterday's 38% decline,

is currently down more than eight and a half percent. nycb's fourth quarter earnings feeling a biting slump in quality thanks to loans with a coconuts multi family portfolio and an office c r e loan. for many bank investors, it was dij@ vu, eliciting fears of contagion akin to what they experienced last spring. even more ironic since nycb acquired part of signatures balance sheet from fdic receivership after that bank failed last march. the question now is whether and why see the's issues are isolated to that one bank or if it is broader systemic risk at. play analysts say the regional banks all of its likely overdone, quote, given idiosyncratic factors tied to nycb. the firm notes that nycb crossing 100 billion in assets threshold after acquiring signature kid subjects into a whole host of additional costly regulations. however, b f a notes that higher losses tied to commercial real estate, cra

office exposure, faces of in loans had two multiple cnre our minor of ongoing credit normalization that we are likely to witness across the industry. and of course, yesterday's fomc meeting, pushing back against rate cuts being imminent, served as salt in the woods for this already battered sector. guys? >> leslie, what does this mean for basel three regulations and these looming higher capital requirements? >> another great question, courtney. on one hand, some of these losses are tied to compliance with some of the stricter regulatory compliance. getting ready for basel three, but there's been this notion in the market, people are expecting some watering down of the basel three proposal as it was written. and regulators could turn to what has been this week. look, these are why we need higher capital requirements, this is case in point as to why we are doing this. now, that is kind of this question as to, will they hold

up new york community bank as the canary in the call might y the stricter regulations need to take place? or will that argument that these are really costly regulations and creating a lot of turmoil themselves the kind of the winning argument? additional -- as well, as it pertains to regulation. >> node likes uncertainty, especially regional banks right now. leslie, thank you very much. >> switching gears now to apple, on deck to report first quarter earnings in just a couple of hours. among investors top concerns is iphone sales in china, where the company is facing regulatory headwinds, increased competition from domestic brands, huawei among them. future ambitions in generative a.i., which could become a deciding factor in retaking its crown as the most valuable company in the world. that title now belongs to microsoft, in part because of its partnership with openai. well apple shares did jump almost 50% last, year it was the smallest gainer in the so-

called magnificent 7. so, what lies ahead for that company? joining us now, our own steve kovach, who is live in cupertino. here on set is been races, head of technology research at melius research. steve, let's start with you. philistine on what we expect to hear from apple today. >> tyler, muted expectations, at least that's what wall street is looking at here. they're expecting for apple to return to top line sales growth for the first time after four quarters of a row of declining sales. but not much revenue expectations overall. 118 billion dollars. that would represent more or less half a percent of revenue growth. but still growth, again. but yes, like you said, there are a lot of troubling expectations here. i will note those estimates used to be about 123 billion last fall and they have been since pared back quite a bit, just because of all this troubling data that we've been seeing out of china. and just overall smartphone demand. you mentioned new competition,

huawei is a big one that seems to be putting a dent in apples market share over there in china. also top analyst mentioned quote, very tied to the supply chains that apple uses, said apple is going to ship a 15% fewer phones this year, potentially. really important to look at. beyond all that is what guidance apple gives on its earnings call after that initial report comes out. five pm is when that call starts. we should expect to hear, something some color commentary for looking on the march quarter. a lot of sour commentary around that. and of course, tyler, we are on the eve of the vision pro launch. this launch is tomorrow, that 3500 dollar augmented reality face computer, whatever you want to call it. tim cook had a big vanity fair cover story today where he appeared for the first, time we saw photo of him actually wearing the vision pro. big launch event for apple, starting tomorrow, the first major product launch in nine. years expect here a little bit of that during the earnings report today as well, tyler.

>> three interesting, steve. stay with us as we bring in ben reitzes. then, the immediate concerns for apple have to do with iphone sales and demand, perhaps most especially in china. but perhaps a longer term issue here is, how does apple don the mantle of an a.i. company? and how did they make that their narrative? address both of those questions, if you would. first, the iphone sales issue and a second, day i question. >> iphone is the majority of revenue and profit, so it's the engine there. it attaches, obviously, huge amount of services. that's going to be the laser focus. the data i've seen is that the fourth quarter is actually not so bad. the concern is what is happened in the last month in china. is it deteriorating every week? why did they do the discounts? what are they seeing and what does that implicate for the market? >> what does not so bad luck like or sound like? >> some of the data i've seen in the fourth quarter in china's down in the single digits. but there has potentially been a deterioration in recent weeks. so, we've got to ask you in

that on the call and what they're seeing. but there is a chance that things accelerate out of this quarter. they have the max, new ipads, their services business is doing well. if at some price increases there that cushion the blow from the app store changes. here if iphone can hang in there, then get back to revenue growth. but let's talk about your a.i. question. revenue growth is going to be the key if they can grow in the march quarter, stop may catch a bit. what they say about china. but i think a.i. is going to be the third most important thing. what they, say what they are teasing. they have an event in, june they developers conference. i think they're going to announce some new .i. features. we want to see an updated siri and we want to see services that people are going to want to use on your iphone. that could drive an upgrade to cycle. i'm not so sure that this year is going to be the huge upgrade cycle, but i think next year will be. it reminds me of past cycles like super cycles. >> and that could be driven by a.i.? >> yes, i think, yes.

>> then, you have a bye reading but you're circuits -- what is going to drive us to 22 from here? how do you get that 20% upside? >> what i think, is if we start to re-accelerate on the revenue side, it's warning of a very high multiple. their services business in gross margins are excellent. they are in rarefied air. those are actually would keep a floor on the stock and, if revenue starts to accelerate, i think that we could see earnings power touch eight bucks within two years, well within two years. at least earnings power. that could power as much higher than my target. but i think we have to see the cycle, we have to see the iphones accelerate and that's what takes us there. >> all eyes on apple as usual. thank you, ben reitzes and steve kovach. stay warm out there, steve, see you soon. shares of norfolk southern higher today on reports of a proxy battle. now, the company is responding and morgan brennan is in the newsroom with more details. >> hi, tyler, that's. right and investor group led by

a cora holdings has built a large stake in norfolk southern with plans to run a proxy fight to overhaul the board and overhaul the ceo alan shaw. norfolk southern issuing a statement short while ago saying, quote, the norfolk southern boarded management team regularly engage with shareholders and take the perspective seriously. we are committed to acting in the best interest of the company other shareholders as we continue to execute our strategy to balance safe, reliable service, continuous productivity driven by a precision scheduled operating model and the pursuit of smart, a creed of growth. first reported by wall street journal, i can confirm the details of that report. and cora has built a roughly one billion dollar stake, nominated a majority stake of directors to norfolk southern's board. this is a bid to oust the ceo -- according to people familiar with the matter. we are seeing this because norfolk southern has under performed on certain financial and performance metrics. at, such has underperformed in

terms of railroad stocks over the past year or so. as you can see right there, though shares of norfolk southern are up seven and a half percent on this news of activists pressure today. guys? >> morgan, thank, you please keep us updated as the story moves along. coming, up elon musk seeking a tesla shareholder vote to move the corporation from delaware to texas. what legal ramifications could they face? plus, teeing off, a new team up, away financial in the u.s. j.a. announcing a new multi, -year multi million dollar corporate partnership. or on that further had on the show. i know what it's like to perform through pain. you're like me, one of the millions suffering from pain caused by migraine, nurtec odt may help. it's the only medication that can treat a migraine when it strikes and prevent migraine attacks. treat and prevent, all in one. don't take if allergic to nurtec. allergic reactions can occur, even days after using. most common side effects were nausea, indigestion, and stomach pain. relief is possible.

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plus, ask how to get up to $1000 prepaid card with qualifying internet. the ten-year yield continuing as post-fed a slide and out of one month low. rick santelli in chicago for, us tracking the bond action. hi, rick. >> hi, tyler. about 24 hours, ago everyone was kind of nervous. what a hawkish statement that

was. let's see. it would say green is a favorite color inequities and yields are lower. let's look at the today of to your notes, shall we? under yesterday's lows, look at today of ten's under yesterday's lows. keep in mind, we had a lot of cross currents dated today. we had productivity topped but yet a 16 month consecutive months in a row in contraction for i.s. m, meaning under 50. and prices paid was the highest in nine months. that's not a good thing. if you look at a chart starting in december of ten, here a couple things should pop out to you, very fascinating. first of, all we are on pace for the lowest yield close since the 27, the lowest yield close of the year. more than, that we end a 22 at three point 88. we ended 23 at 3.88 and a few minutes ago, guess where we are at? three point 88. i find that very fascinating.

if you look at the 2:10 spread right now at minus 33 basis points, it wasn't that long ago it was at minus 17. so, two cents is now the most inverted in one month and a sum of the cross currents, once again, look like slowing economy might be something to pay attention to. but which way that moves the spread it can be anybody's guess. right, now ten seems to be looking at weakness. with respect to the fed, whether it's the march meeting or not, it certainly seems as though they are partying like it's march of 24. courtney, back to you. >> thank you very much, rick, appreciate the analysis. the tech heavy nasdaq is down about a percent this week even though it is higher today. our next guest, expecting to see tech underperformance this year, reportings of under realistic expectations of the magnificent 7 names we talk about so option. let's bring in jack avlon, founding partner and cio of -- capital. thank you for being here. rick santelli gave us the lowdown there on fixed income, but i guess i'll get your

reaction after we got that hawkish statement in press conference from the fed and from jerome powell. has anything changed about your approach for, say, the next several months in your management of a portfolio? >> no. i think nothing's really changed on our front. our base case scenario is probably close to consensus. we do expect slowing growth, slowing inflation. the economy has actually been a little more resilient as we started the year, certainly labor market and the like. that is giving the fed a lot more elbow room. they don't necessarily have to tighten this as quickly as perhaps the fed funds features would suggest. i think that is probably putting a little pressure on that ten-year. >> a lot of focus on tech today, of course, as we're waiting to hear from some big reporters after the bell. we talked about the magnificent 7 as well. clearly have come a very long way. is valuation the reason that you potentially see some underperformance for that group? is it somebody else's turn,

frankly, to pick up that performance? what's your theory about the magnificent 7 and tech more broadly goincts at play here, c one, is look, the magnificent 7 did great last year. collectively up over 100 percent. we keep, in mind in 2020, two they're down nearly 50%. now, over the last week, since teslas pretty lackluster earnings announcement and alphabet, we are seeing the mag 7 down around 3% over that time, between last week in this. in fact, two of the mag 7 are in negative territory. tesla and apple, here to date. where we see an issue is we are setting up now with the relative valuation of tech in particular trading at 53% premium to the rest of the market on a forward p e basis. when you look when you're out, the chance that tech will continue to outperform when it

starts at this high of a relative valuation premium is tough. in fact, the best result we've ever seen is probably a plus 5% out performance. there is certainly a lot of room to underperform the market. doesn't necessarily mean that this sector will drop. it just means that, with yields, with a broadening of the economy making financing costs a little easier, it creates a tailwind for just about everybody else. >> you mention among the other beneficiaries of falling rates, small caps, select ones and financials. yet three of the stocks you mention our reits. why reits? >> reaps certainly have been punished, perhaps everyone is looking at the commercial real estate and how owners are somewhat in denial, the general partners are moving their marks in tandem with where we think the market is. the fact is, reits have already

gotten hammered and we're looking at implied kept rates and double digit territory in a lot of these categories. the good news here is, these names are high quality. because we have a high quality screen. they have high dividends and high dividend growth. realty income, 5.6% dividend yield with a 3% annual dividend growth. essex property, 3.9% dividend yield with a 4.4% annualized dividend growth. and federal realty, 4.3% dividend yield with a 1.4% annualized dividend growth. so, constant growth. i think it is probably in an environment where we think of overnight rates coming down. we don't know if it's as early as march but financing, it'll start to become a little bit easier. that will help financials but it should also help the real estate company is in

particular. >> excellent, jack avalon, we appreciate, it thank you. after the break, chinese shipping lines have started to advertise guaranteed safe passage via the red to see things to their escort by the chinese navy. we will head live to beijing for that story when we return in two minutes. i could use a little help. yeah, there's a lot of risk out there. huh ♪♪ hey, is this thing hard to learn? nah, it's easy. huh. you know, i think i'm going to ride it home. good thing you chose u.s. bank to manage and grow your money. with our 24/7 support at least you're not taking chances with your finances. yeah, i think i'm gonna need a chair. oh, ohhhh.

welcome back to power lunch, everybody. titled on ships in the red sea causing problems for manufacturers who may need to find another way to ship goods to markets. but chinese companies have found a different approach. you know soon joins us live from beijing. eunice? >> thanks, tyler. the houthi attacks on shipping and have it in turmoil ongoing trade but some in china see opportunity on prices. >> reporter: what about your tv sets from china getting hijacked in the red sea? shipping firms see legend, manage out of shanghai, says send your products on their boats. >> this is the most frequent and reliable direct saving from

china to the red sea region. >> reporter: robin's-year-old company is marketing itself as the answer to your read she shipping problems. the houthis in the red sea have claimed they want us all chinese vessels as long as they have no connection with israel. >> the crisis is mostly focused in this area. >> reporter: for him, this is a hot business opportunity. >> it is very, very hot. customers realize they can choose the service, more and more customers will come. >> reporter: his ship is headed from this port to the red sea, carrying chinese goods bound for the suez canal. protected from the houthis by its chinese flag. night and day, the all chinese crew is equipped with barbed wire, barricades for the doors and armed security. but the real protection is china's increasingly close relationship with iran, which backs the houthis. the company can organize an escort by the chinese navy. do you ever worry about a backlash because of the politics of it? that people will say oh, they're just taking advantage

of the situation? >> no, i don't worry about that. because we think we are doing the right thing. in the red sea, -- >> reporter: keep trade flowing with -- not everyone is as brave as mr. li. some of the bigger chinese shipping lines have told their customers that they're clearing the area. tyler? >> how many ships has this entrepreneur or others sent through the red sea with chinese escorts? do we have any idea? >> reporter: well, he is operating a weekly and sometimes twice a week service and he said that, as of now, he is 11 ships. even when i asked him that same question yesterday, he said the day before, i would've told you ten. today, i'm going to do 11. he says that there is very little space now on those ships because of all the demand. >> all right, thank you very much, eunice yoon reporting from beijing where it is the middle of the night.

yeah, fascinating story. we have big movers in the energy space today. pippa stevens is here to give us the names on the move. hi, pippa. >> starting with next tracker, that is surging after q- theories of came in ahead of estimates with the company also raising its annual guidance. next tracker makes a specialized solar tracking system that follows the sun throughout the day. therefore, optimizing power generation. the company said it now has a record backlog thanks to strong demand. they reiterate the stop as a top pick, raising its target to $73. it's about 33% above what is currently trading. without a sun power, also on the move after receiving another waiver extension from its creditors until february 16th. another words, some additional time to write the ship. the company also announced 20 million in financing from majority shareholders total and global infrastructure partners. still, the stock is down 80% in the last year. also has relatively high short interest at about 33% of float.

finally, you are reigning stocks jumping after kids at a prom, the world's largest uranium producer, said that he was production after prior estimates after sulfuric acid shortages. this comes after uranium prices jumped to a 16-year high thanks to a tight market. with the supply side unable to quickly respond, asit -- told me that institutional as it interest in the spaces have been higher. those talks of about 7% today. tyler? >> pippa, thank you very much. let's go to contessa ruling out for a cbc news update. contessa? >> tyler, is a potentially good side out of the middle east as a qatari official tells reuters hamas has received a truce proposal for a cease-fire and hostage release with israel. while he said there is no deal yet, hamas has received the proposal positively, that's a quote. the mother of a michigan mass shooter who killed four fellow students in a 2021 rampage just

took the stand. she is on trial for involuntary manslaughter. it is a rare case of a parent of a school shooter facing criminal responsibility. her husband will face charges, the same charges, in a separate trial. if she is convicted, she would face up to 15 years in prison, as what he. and paris gets ready to welcome international fans to the summer olympics. the city's public transportation system is equipping more than 3000 agents with a.i. translation devices in time for the games. the handheld machines can translate between -- and 16 different languages. -- welcome to paris. of, course we're going to translate for you. >> [speaking in a global language] >> okay. >> elon musk trying to move the tesla corporation to texas. what pros and cons would come with such a move. we're going to talk about that coming up next.

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delaware. this just days after a delaware judge voided elon musk's 56 billion dollar compensation package at the company. the stock up more than 2% for the week. let's bring in nbc news and msnbc legal analyst danny's of all us. thank you so much for being here. delaware is often a state you hear about for corporations choosing to incorporate. why is delaware so popular? and what could be a pro and con of leaving delaware and going specifically to texas? >> the vast majority of corporations, particularly large corporations, are incorporated in delaware. that is because the state has essentially made it unappetizing place for large corporations. with favorable corporate taxes, very favorable deductions and a very established body of case law. in other, words there are specialized courts, the court of chancery, that is dedicated to handling corporate disputes. you have certainty in your law

in delaware. you have flexibility and you have a state that is very favorable with its tax and other advantages given to lower corporations. but states like texas in recent years have started to try to compete with delaware. but because then you -- can't compete with an established body of case law. and a tendency, by the way, perhaps ironically, for delaware judges and courts to mostly let corporations and their governments do what they want. which would be an interesting reason for leaving delaware if that is one of the advantages in delaware, that freedom it tends to give corporations and their boards. >> seems a little petulant, then, perhaps to leave because of this pay package. i'll be a 56 billion dollars is an awful lot of money. if you are a shareholder, what would you advise a vote to be? vote yes or vote no? >> generally, speaking it's not exactly leaving the known for

the complete unknown. texas is one of those states that has been saying, come to our state, we're good to corporations as well. but corporations don't like uncertainty and, like i said, for you don't have an established body of case law. generally speaking, investors are more comfortable with delaware corporations. because, as you know better than anyone, one of the most important things when it comes to investing is some degree of confidence, some degree of certainty. with, delaware you get it. delaware has been the place for corporations, large corporations, for decades if not many decades now. other states may offer favorable advantages, but without the established body of case law interpreting corporate disputes and other corporate issues, there's an element of uncertainty in taking your corporation to another state like texas. which may still have some favorable laws in texas. >> his delaware known for

looking at executive pay packages in a tougher light than texas? >> innocents, it's known for the opposite. it is known for, generally speaking, living corporate boards alone to do their work. there is a bit of a paradox that the very reason that elon musk may want to incorporate in texas over delaware is because he may have found delaware courts to be too meddlesome in the affairs of the company. which is not something that is a common accusation against delaware courts of chancery. however, in this case, this is an example of a court in delaware stepping in and overturning a compensation package by and for elon musk. >> i guess the board would have to approve of this. with the shareholders of tesla necessarily have to be consulted for a vote on this? and what if they shareholders voted against it? >> and all, likelihood they would have to be consulted.

indeed, it was one of the factors in the courts decision that shareholders weren't given enough notice and opportunity. that is why, one of the reasons why, the computation package to musk eventually was overturned. but yes, generally speaking, you have to notify shareholders. they are entitled to vote when it comes to a publicly traded company. we are mostly talking about an almost entirely large, public traded company. by the, way as an aside, if you're a small company, an llc or something like, that you often want to incorporate in your own state. have to get people asking me who live far away in oklahoma, they want to start up a little company to maybe sell knick- knacks. should i incorporate in delaware? the answer is usually no. if you become a gigantic knick knack corp, then you can talk about incorporating in delaware. but what we're talking about here is a favorable advantage in delaware for large, gigantic style companies. tesla being a good example. >> man, you've got range. you can move from defamation

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time for today's three stock lunch, where we look at three big movers of the day. here with our trades as jerry cast ali, need chief investment that started arc and basement management. up first is merck, shares of merck jump with expectations the companies is trying to mend france to top drugs. what is the trade for you on mark? i >> guess i'm happy to see their current drugs are doing well. but in a bigger, context i think this year is important for investors to appreciate, we're not going to be moving as much in the 24 mark it as we have in the last few years based on sector. it was always all tech or

health care or something. i'm of the mind that you have to pick winners now and not try to pull or bootstrap up some of the likert's. merck has been a laggard. it's not one i would choose over lily. but more importantly, we tend to avoid when big pharma companies have upcoming approvals with the regulators. they have three drugs in the pipeline that you are going to hear important news about this year. i'm always leery about what you pay for going into those types of announcements. you tend to do quite well after the fact, rather than leading up. >> let's go to norfolk southern. we heard earlier, jerry, about the proxy battle involving that company. the stock on track, highest close and nearly a year. the trade here, sir? >> so, ancora he's of the view that, by taking in being an active in this tier, they can have an impact on the, board have an impact on how management should or shouldn't

behave. that's a tough road, again, we're not a buyer here. we are a holder, essentially. because, with an activist in, they're usually don't have big downside. but, again you're asking a lot of basically a monopoly business like a railroad to all of a sudden have a bunch of things that an activist can fix. they don't like the management, the management is clearly underperforming. but at the same time, what can they do to really drive this to it perform? when you look at the root structure of their operations, they are not as good, as let, say union pacific. who has a monopoly from the west coast and to the south. right now, is seeing much better year over year numbers than norfolk southern. they're not as dependent on coal. again, we just feel like you can hold this. it's got some downside protection. but we would look at the other name. >> finally, we have boot barn,

very quickly, the company beat q3 earnings, missed an revenue estimate, shares up 10% today though. so, jerry, what is the trade on boot barn? >> definitely sell. this is a short cover rally. people really concerned about the crummy weather during the christmas season and the impact it would have on boot sales. obviously, it wasn't as bad as we thought. but if you look back over the last few, years the earnings power of this company has just not met expectations. doesn't seem to be a quick answer for that. we would take the opportunity of a quick pop like today, as people are trying to cover and markup their books. we wouldn't stay in this. >> your boots were made for walking, thank you very much, jake hostility, for joining us with restock lunch. major partnership in golf. we're going to speak to the u.s. ga ceo along with the number one women gf,'sol or lilian view. we'll be right back. with tailored education.

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welcome back to power lunch, everybody. big deal in the world of golf, the nation's largest jewelry bank ally financial announcing a new multi, or multi million dollar corporate partnership the u.s. golf association. ally will be the presenting partner for the u.s. women's

open, which will elevate its purpose for the 2024 champion to a $12 million. in addition, ally is signing lilia vu, the number one women's golfer in the world as a brand ambassador. here with us is lilia vu. welcome, good to have you here. along with mike, ceo of the u.s. golf association and stephanie markey ono, head of sports and entertainment marketing it ally financial. stephanie, let me start with you. why was women's golf such an appealing partner target for ally? >> of, course thank you for having me and giving voice to this partnership. that starts with a fact that we believe in women sport for our business. and, golf basically, provides an untapped territory for us and the opportunity to reach millions of fans who we are not currently reaching with our sports partnerships. we know that sports fans have higher preference in likability in consideration of our brand. they're more loyal towards our brand and they convert with our

brand at a lower cost to convert. so, we knew that it was time to expand our portfolio, golf was the right territory. and u.s. j.a. were the right partners because a share are, values they're always prioritizing the women's game and, together, we have built the partnership that will help drive greater equity and access in the sport of golf. >> stephanie has just said why they like to you. why did you like them? >> i was just going to echo the same thing. li and i share the same values, they really push hard in women sports and really try to make women sports hard to miss. after hearing that, how could you not collaborate with them? >> mike, this is going to elevate the purse here at he -- that the lpga, the women's open, which is distinct from the lpga, i should point out. he and the person at the u.s. men's open is going up as well. is there any ceiling here? >> by the way, you won't defend me with lpga, i spent 11 years as an lpga commissioner before going, here i know how big this is for women's golf.

if you go back a couple years, ago the u.s. women's open purse, which is the largest on the lpga, was 5.5 million. today, to be talking about 12, we're not talking about small change. this is quite significant. 2.6 1 million winners check, if you missed it like the u.s. we view making the cut as one of the people, over 4000 people try to get into that event. that is exciting. the game itself is exploding. 32% more people are playing the game now than four, five years ago. for us personally, for a hundred and 30-year-old compan , this is the first time we are having a u.s. women's open while at the same time being a corporate partner in all of our championships while at the same time being the first founding partner of the united states development team, which is about helping the next pipeline of american players reach the top of their game. this is the first time in 130

years we can talk about what ally is doing and it's very special. >> look, it is still below what the men are making but we have paid a lot more attention to women's sports. what does it mean to you to have someone pay more attention to the value you bring to the game? >> this partnership is absolutely impactful. other companies like ally and usga partnering to bring this kind of record-breaking the oh. it shows other companies investing in women's golf. >> i am told a ways back, you almost gave up on playing golf. it is a storm -- sport that makes you want to give up. >> no kidding! >> there isn't a golfer out there who hasn't thought of giving up. tell us about your journey and why you got to such a point of despair.

you are a golfer and so forth, but what led you to be able to persevere to now being number one in the world? >> a lot of things, not one single thing that i could point out. i was a top amateur and i put a lot of pressure on myself to perform well. i didn't have any success. i thought this might be the end of the road for me, but somehow hope it happened and i was able to kind of throw myself into a lot of self-help books and personal development, just trying to guide myself to falling in love with golf again. i play my best golf when i am having fun so i want to build a team around me that helps me have fun so i can focus and play my best golf. >> golf is a head game, isn't it ? >> 100%. >> if it gets in your head the wrong way, it can bring you down. stephanie, this is a long-term deal. give us some of the particulars here. how much is ally paying?

>> i can't share the exact financials with you but it is a multi-year multimillion dollar deal and we will become the official bank of the usga and the women's open as well as to mike's point the founding partner of that development program. for us, it is the start of something very, very special. we will be investing in lilia and she will be on our advisory board, telling us how we should be pushing and pulling those investments. hearing from our athletes help us strategize moving forward. this is the first time we are stepping onto the golf national stage and we have a lot of things in store for 2024 and beyond. >> stephanie, mike, thank you and lilia, good luck on your me inued success. >>orpower lunch coming up, so stay with us.

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welcome back to power lunc . at the highs of the session, the tao of nearly and the nasdaq up 1.2%, the leader of the pack. ferrari zooming higher today. is it the news of lewis hamilton joining the ferrari team, or is it the company's earnings? >> the ticker symbol up 12%. the market cap, $73 billion. that is basically 50% higher than gm or ford and they make millions of cars. ferrari makes 13,000 a year, so think about that. they reported sales and they were meeting their earnings targets. it was the 2024 outlook analyst really liked. 7% earnings growth.

the ceo saying there is no sign the wealthy are slowing down buying their ferraris. demand is strong into 2025 and 2026. he says there is not an impact of any kind. hybrids account for 44% of ferrari cars sold. they will launch their first ev in 2025. a lot of product growth coming from personalization. buyers can customize their cars. they are selling more expensive models. lewis hamilton, the rockstar of a formula one, joining ferrari in 2025 including clothing, merchandise, and racing. could be meaningful if he really boosts if they start winning more and they get more visibility. they are the most famous team, but -- >> he was the most dominant player when he was with

mercedes. >> right now it is red bull on top. >> this is fascinating with the demand for ferraris, much stronger than other luxury car categories. >> if any category is immune to any shock or concern, it's people who by $300,000 sports cars as their 12th or 13th car. they have the clients that you can pretty much -- i mean, they are backordered for the next three years. what we are looking at in terms of production now is stuff ordered two, three years ago. even if there is a slowdown, we won't see it for couple of years. >> we are full through 2025 and 2026. amazing stuff. luxury is strong. robert frank, thank you. i want to send a farewell to jack weber, a teacher in the mount clare public school system teaching economics and monetary policy. in fact, he and his lasses have won multiple mock

competitions where they go up against other schools. he is a coach and a great teacher. he taught both of my sons. good luck, mr. weber. >> closing bell starts right now. thank you very much. >> there you go. guys, welcome to closing bell. i am scott walker live at the new york stock exchange. we begin with the countdown to three of the most important earnings reports of the season. apple, amazon, meta hitting in just about one hour. we've got ownership of all of those stocks and we will hear from the experts in a few minutes to get you set up. in the meantime, york scorecard with 60 minutes to go in regulation looks like this. nice bounce back for the average is today following the markets marching back from a melt down just one day ago. tech, a big reason why as most of the mega names are on