welcome to "power lunch." alongside the amazing tessa brower, i am brian sullivan. stocks are not amazing. they're bowling. jim powell, reading market applications with interest rates cut. we'll talk about that. also, disturbing reports of elon musk with alleged drug use at tesla's board. how big, if at all, is this problem with the company? an unhappy shoulder we will speak with. plus, training like viral, loud budgeting? loud budgeting! >> perfect for us. perfect for the two of us. more people are living on a budget. they want everyone to know about it. talk to somebody who gave this trend a kickstart and the colleague for cnbc -- not brian -- doing it for years. first, let's chat on the markets now. as brian said, looking a little scary out there with the dow industrials off by .64%,

s&p 500, down 30%, and the nasdaq composite has dropped 1/4 of 8%. the chair, and powell, reinforcing from wednesday afternoon, great rate cuts may not be coming as quickly or as frequently as what the market seems to expect. is today drop another test for an already battle-tested bull market? let's bring in michael santoli for more.what are you watching, mike? >> tessa, i would argue we are in the latest phase of the bull market premise on the economy being resulted in the fed pivoting towards easier policy. we have had some applications along the front. maybe it's not as soft a landing as people thought. the first test -- it was very evident on friday as well as today -- can this market embrace good economic news? the economy is strong than expected and means that the fed is going to be slower for a first-rate hike and maybe shallower in terms of the rate hike campaign. can we deal with that?

i would argue, you can if this current data is not a complete had fake this is the question. earnings is another piece of this. can earnings come through and by the very largest gross stocks, mostly, and support what are already acknowledged to be a very full valuation for this market? i would say, a tentative yes so far, but more remains to be seen. by no means an extensive market and also an uneven one. one of the ways this market has been passing this test so far is because you do have the leadership for the very large stock, which is not just a six mega cap nasdaq stocks, also today, berkshire hathaway, ge and caterpillar, and chipotle at an all-time high. archer hathaway. it is a select group of stocks though. so far, you have to give it -- it's an incomplete, but so far, passing grade. >> are you seeing a trend in terms of earnings beats matching a stock lift? >> yes, but it is not that type of linkage, necessarily. you are definitely seeing misses getting punished. if you don't make the numbers

with companies falling short, you're getting honest. i think you are seeing more like the routine level of, you know, strong stock reaction to earnings beats. i think we have gotten very complacent assuming, you know, 65, 80% of companies are going to be pretty much on track for that. the aggregate growth numbers are not looking that wonderful, but they are positive at this point in a year-to-year basis. that means, for now, the second quarter of last year was the trough for this earnings point. >> mike, great to talk to you. thank you for kicking us off. >> now to shares of tesla, under a lot of pressure. not only to start the week, but have been for the year. 2024, not a great year so far for tesla. investors, though, a massive run lester. "the wall street journal," an inclusive article over the weekend titled "the money and drugs that tie elon musk to some tesla directors." this is from an earlier story this year about concerns over

mosque's apparent illegal drug use. let's dig deeper into this and talk about why it is a board not doing anything about it. kristen holmes is the cio of nia impact capital. she removed tesla from her core portfolio last january, but does maintain a small position. i want to be clear, kristin, there's reports about what must may or may not be doing, but i want to make it very clear that he has said he has passed on drug tests. of course, not cannabis. cannabis is legal in so many states anyway. so, what do we know, and how do you come at it as a shareholder? >> thanks, brian, for having me back on nbc and cnbc. this company continues to present concerns for investors. i will say a little bit about where we are. this current concern as far as drug use, one is, really, calming to the job of the board. what is the board as far as ensuring that the ceo is able to do and performance job duties ? in the case of tesla, there's

actually a very clear drug-free work late. their code of conduct actually prohibits all employees, including executive, from using drugs even outside the workplace. and so, we are looking to see whether the board is actually doing his job, both in looking at reputational risk, as well as financial risk that tesla. >> i mean, it's hard to follow. i don't know mr. must. i know he tweet out or x's out with all these drug tests he has passed. a lot of reports, sometimes, he is tweeting from all hours of the night. who knows where he is in the world, by the way. what do we know, for ertain, if anything? >> do we know whether he is actually using drugs? no. that's not something that i know. it's more that this issue -- i think some have said, his erratic behavior comes from his genus or his create eady. some of these outlandish tweets are, perhaps, part of the genus.

there is some concern what is happening. i think it's really up to the board, though, to see can he both stick with the policies and code of conduct that tesla has set, then can he also do his job as the ceo, and that is for the board to step in and step up to figure this out. then, communicate to investors just what is going on. >> how much of your concern, then, is it really about the alleged drug use, and how much of your concern is the oversight of the board of directors or the lack there of? >> thank you, that's a great question. we are really concerned, can the ceo do the job of bringing tesla to the next stage, can it attract and retain top talent? they have had a significant issue with capital management in general. this does point to the board, as far as being able to help reduce risk for tesla they are being sued for environmental

hazards. they are being sued for racial dissemination. can we have the brand, as well as the financial interest then investors need to see? >> do you think -- you know -- he made headlines going back to the board, saying, i need to have at least 25% of the stock in order for me to feel like i shouldn't really be investing my brainpower here -- is this a company that needs elon musk? >> you know, that is the question of the hour. thank you for asking it. there would be those that say, the founder is really important. i think that, you know, love him or hate him, no one is arguing that he and tesla haven't disrupted the entire automobile industry as we know it. we are certainly interested in the battery play, as well as connecting to the grid with the solar, as well as every thing they're thinking about for robotics moving forward. do, and does, tesla need you on to move forward? in some way, possibly. does it need to be the ceo

figurehead? could he move to being president, or just a founder, in many ways, again, which is the work of the board to figure this out. what is his highest use, what is his best use, then also, how can we reduce the risk that some of these issues have been building. >> let me ask you a question, if you don't mind, but obviously, mr. must is a very polarizing figure in many ways. since he bought twitter, become even more polarizing, kristin. you know, you talked about all the things that are going on t tesla. he just lost this pay package case and a delaware court. they have kind of gone after him on the twitter side. do you feel that elon musk generates -- we know he generates an inordinate amount -- shall we say office of government attention, but ou think it is fair that people want to go after him because he is elon musk and richer than everybody? >> brian, that's a great question. i would say, in the case of the a grievances, he is actually not achieving enough attention. yes, he creates a lot of

attention on his own platform you know, whether he should have a platform, whether that should have been taken private. that's a whole other discussion. yet, we, as investors, really do need to see the board remaking him in. in our opinion, they have failed to do so thus far. so, we want to see the attention happening, you know, the pay package that was deemed egregious and excessive. and could that, or should that happen in any company in corporate america or beyond? no. you know, so, the court is saying, no. >> do you they have a right? the court can do what he wants, but this was approved by 87% of shoulders. the pay package, took a massive risk. he hit the goals. >> although, the court in delaware sided with the investor who said, we don't have the information in front of us with the favor of the pay package. >> who does? i made a lot of decisions 10 years ago with all the information. you know? >> the judge decided i was enough between the plaintiff.

>> this is an ongoing saga, kristin. thank you for that. the other interesting thing is the parallels it brings up for me about the crisis that wynn resorts went through when its founder was accused of a slew, decades of that behavior. >> all kinds of stuff. >> and the failure of the board to oversee that and intervene. >> but this is just a pay package. right? the pay package is successive? >> no. i think the questions now raised about how much oversight the board has at tesla are for shareholders, concerning, and we saw this in other companies with wynn resorts and what happened. they had a big shakeup after that. on deck, the big new vinyl financial trend taking america by storm called -- want to do loud? >> loud budgeting! >> we'll let you know where this and why more people -- especially young people -- are doing it. plus, a mid-cap stock up more than 600% because of --

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shares of supermicro computers are almost 40% up, 680% on the year, 130% since the start of 2024. then, just powering right up, higher today. can supermicro climb higher, or are shares destined to crash and burn? an analyst on both side of the name. the north land securities, one of the many balls on the stand, let's get to "power lunch three, but the more the lonely bears on the street somebody

with a price target of just $250. next guest expect to see micro fall more than 60% the coming months. here to expand his stance, senior equity research analyst, great to see you, medi esenni. expect to us why you are so down on the stock. >> think of the opportunity. a couple of reasons, but when you look at the economics, i think it is unfavorable for micro even if you think about ai. another example, for unit economics, first, there's no leverage been a model. this is pretty much a unit- driven business model with a significant working capital requirement. those margins have already sorted to decline. it is not like the company reported 70% q-over-q registers with 50 basis points. we expect them margin erosion to intensify, especially since memory and storage cost is going to increase at a faster rate,

and this is something that, in our opinion, supermicro will not be able to pass on to the customer. lastly, it's cash modes. the company actually burned 600 million of free cash flow for the reported december quarter, and the net income was much lower than we expect for the cash burn to intensify with, especially for the company affected to build working capital to support multiple new products by customers. >> how much does competition play a role in your thesis, mehdi? >> the combinations of factors, especially for long-term, if you look at the ar supply chain, there are key -type one based companies, like foxconn, that are involved in the early part of the supply chain. they have a better margin profile, and they're expected to use that superior margin to move downstream. i think this is going to be a factor, but we will look into that 9 or 12 months from here. >> obviously, mehdi, it was a small comedy.

should we change the name to supermicro? the stock is not micro anymore, it is tiny. how much is the share count and, sort of, i don't want to say lack of liquidity, but it is a much smaller company. how does this play into the gigantic run that it has had? i have seen this kind of story before. >> yes. i think you and i have been around remember the hyper cycles of the past 20-some years or at least the company name should be ore of a superlight, but in looking at the company's composition, we obviously have key partnerships with nvidia, amt, and to some extent, intel. as the side gains momentum, the economic value add, or lack of it for the value add, is going to impact. when we went through the same thing a couple of years ago in the cloud cycle of 2016 through '18, the company had significant growth trajectory, and then was not able to recognize that. i think, in this part of the

early part of ai cycle -- obviously, the investors want to attend? winners. i think the hype and expectation that, as the company at capacity will translate to revenue growth will not be understood. >> it is great of you to join us, tran 24. again, price at 250, brian. >> all right. now, the other side of that stock story, the bull following supermicro for a long time has been vibrating on the stock for nearly 5 years, going back to february of 2019. shares were under $20. obviously, this has been a great, great call if you listened to naha chakshi, managing director of infrastructure at northland security. first off, great call. you can respond to what the previous guest just sent, but what did you see in supermicro that, apparently, a lot of

other people missed? >> yeah. great, thank you for having me on this show. i guess, first of all, the thing that i have seen with supermicro is a decade-long durable differentiation, in that they on the otherboard design, the power supply design, chassis design, allows customers superior power and efficiency at volume price economics. and the industry bifurcated the responsibilities of the manufacturing and marketing decades ago. supermicro has stepped in with this unique business model that cannot be replicated because of this bifurcation of the responsibility is. and you see this durable differentiation in terms of return on the capital. go look at the gross earnings, less than 20%. there is no ip there. look at the return on invested capital. already five plus percent. how can have a 25 plus percent

return on capital without significant ip? that ip is building on architecture. that is we see. it has been decades-long. now, what happened over the past two years old as we started calling this a top deck will be for the chatgpt game opened in may of 2022. that is because a new cfo came in, and he brought a significantly better deal of discipline. he was sitting on the other side for years at hp enterprise, looking at supermicro, being afraid of it, because they know that they have better quality, better service, and when he came into supermicro, became the cfo, he brought better discipline, started st. martins increase. when we saw that, we knew that this was going to be a barn burner. we didn't know about the chatgpt at the point in time, but once the chatgpt moment and we saw that they are the leader in the narrative ai servers, that really changed it as well. we can talk about, you know, what is the opportunity for supermicro with respect to that, but that is what we have

been seeing, here, on supermicro, is a durable decades-long differentiation we do not see being eroded. >> many have brought up two points, the declining margin and the increased competition. how do you factor that into your case? >> okay. the decline in gross margin over the past one quarter has been a result of getting larger customers when you get larger customers, they have more pricing power. the gross margin gets eroded. a roasted network says, 60%, another one has 80%. it is a result of the server for the facebook's of the world. but they get it back in terms of lower effects. by the way, look at the operating margin for supermicro over a q-over-q bases, it was up because of the operating leverage they are getting by serving larger customers. so, i don't really see a merit to that argument. >> okay. you had a price target of 625. we are watching the stock right now at 655. are you going to raise your pt again? >> so, let's look at this,

here, right now, treating at about 25x, fiscal year '25, which is premium for s&p 500. we can say, given their differentiation, their growth profile, should earn a premium. the question is how much of a premium. usually, we utilize adc evaluation premier to evaluate high-growth companies such as supermicro. we look at what is the market size, market share, margins in a terminal period. right now, what is underpinning the price target is the server market grows about 10% per year for the next five digit years, supermicro will go 20% per year. the marketer will go from 12% to 16%. now, we did a p's a year ago in 2023, june, talking degenerative ai market that we hit which will triple the size of the i.t. , software, hardware, and semi market. exactly what is the timeframe? we don't know. probably 10 years, maybe 20

years. whatever the case is, this is a once-in-a-lifetime office once in a 100-year opportunity in terms of what generative ai values stand to create. could we take up our, you know, estimates in terms of size and supermicro growth rate? yeah. we probably could. can we ask a higher target price target? yeah, probably can. our most recent note, we noted the growth there. a setting where things fall out, we don't know. but there's definitely room there. >> hey, great to talk to you, nehal. if you are right, a lot of money to be made there. thank you for sharing your thesis with us. >> absolutely. take you so much. coming up, a new customer base to look at one startup aiming to make pet foods better for both you, your furry friend in the planet. was going to take you you, but only you -- that's ahead in "clean start. that is stripe out on the positive side of the s&p . 12% of the back of earnings, on the negative side. a our products and chemicals,

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welcome back to "power lunch." i'm brian sullivan. she is contessa. stop down today with -- she is contessa brewer -- full name. show them on the camera. hi. stocks continue to take market expertise about rate cuts. same factors dragging stocks down are pushing bond yields up. let's get down to rick santelli for the bond market action. rick, this will be on my show tonight, 7:00 p.m. eastern, 6:00 central. there's $10 trillion of debt, in maturity this year. $10 trillion. do we have enough buyers for that? >> that is the big question. this year, it's 10 trillion, next year, you are going to see the same scenario, as we have many different securities throughout the system that are going to be, of course, maturing. you have to reload, and reloading with higher interest rates, we are not exactly sure how that's going to treat the businesses, and we will not accept the sure how investors are going to respond to the need for businesses to issue

more for the expiring paper. now, if you look at today, we had some big data points out. ism, tmis, headline number, 53.4 , just go to august of last summer to find a better number. really, it was more about the prices paid component prices paid comes in at 64, and remember, if you look at june 30th of last year, we reached a three-your bottom on prices paid all the way back to the beginning of covid . this reverses that, puts prices paid at a one-year high. what was the reaction in markets? swift, brian. looking at entry of 2 is, no yield, you can see at 10:00 eastern, the way they popped. not only that, look at the 2- day with today's trade trading higher than friday's high yield, true of everything from 2's, 3's, 5's, 10's, the entire curve of treasuries, seeing that strength. more selling, pushing yields up. finally, the dollar index

continues to respond to higher interest rates and potentially fewer rate cuts in 2024. it's on pace for the best close in nearly 3 months. back to you, thank you for that, rick. over to courtney reagan now for a cbc news update. high, contessa for the senate released a bipartisan order but late yesterday. we have a response from republican in the house. speaker johnson, along with other gop leaders, released a joint statement this afternoon, saying, the bill is, quote, dead on arrival in the house. as the border bill link which is, president biden condemns the push to push against homan secretary alejandra mayorkas. that's according to a statement from the white house, which calls the charges an unprecedented and unconstitutional medical attack. gop leadership aid tells nbc news, the house will vote tomorrow on impeachment. gap inc. announced a new creative director for the company with its old navy brand today. fashion designer zach bosa, one of several new executives at the company and recently

appointed ceo richard dixon from mattel. as the company looks to redefine itself. brian, back over to. >> thank you very much, courtney. coming up after the break, apparently it is the newest financial trend out there. people are budgeting, and like anything else, they want to share it with you. we are going to explain what loud budgeting is with sharon coming up. the bond report is brought to by a global leader in active fixed income, pimco your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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from across the country. they provide the potential for regular income are federally tax-free and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. welcome back to "power lunch." social media is filled with posts of people flaunting their wealth -- or at least you might think so -- a new viral trend popular with gen z calls for them to speak openly about the money or the lack thereof. >> loud budgeting is a new concept i'm introducing for 2024, the opposite of quiet luxury. if you know any rich people -- >> how does loud budgeting work on and off-line?

one of the benefits of opening about your finances to the world includes what we get from lucas battle, comedian and tiktok and fletcher who coined the term and sharon epperson, senior correspondent for finances. lucas, on the clip there, why did you think that this should be -- loud budgeting -- something that kids embrace? >> i think it was coming off the heels of quiet luxury, which was a huge trend last year. i think loud budgeting, which is the inverse of quiet luxury, is just kind of timely trend for now, especially in the economy. >> how do you put that into action? >> a lot of ways. i have been grocery shopping more. i do dinner parties. didn't get my shirt steamed first. just kind of cutting corners everywhere. >> if it is a little wrinkle, you are saving money. that's all right. >> exactly. >> let's call, i would imagine. the hardest thing to say -- i found it freeing, sharing, when i realized i could say, i can't afford it, or it's just not in my budget. it is so freeing to say that.

sorry, i can't go to vegas. i can't afford it. >> the thing is, when people start the year with these resolutions, i'm going to stop spending as much, but how are you going to do that? you would need to have the gold and figure out how you're going to do it, but you need someone to help hold you ccountable and stick to it. that is what lucas has figured out. have the whole landscape of social media help you stick to it by saying, this is what i'm going to do, and people commenting, saying, i'm doing the same thing, or do it this way, and that will help you stick to your goal. it is kind of like reinforcing the accountability of whenever you set your mind to do something, do it. >> sharon, you have been preaching about personal finance for a long time out there. is that something that people your age just discount, that there's lots of information out there about how to make your personal finances work for you? >> i don't think they discount it. i think there's a lot of information available online, like tiktok, for younger people to gain financial information. you leave high school, don't know how to fill out a check,

you can search on tiktok how to do this stuff. >> isn't that amazing? >> it is great. >> the them with information there, but then sticking to it -- you can find the information, but then, are you going to say, i cannot go out for drinks tonight, because i don't have the money, get paid next week or next friday, or in my house, because i want to go out and pay for this? >> maybe you have one of your wealth your friends if that is the case. >> well -- >> i'm sorry, i can't join you out there because i don't have a plate. lucas, let's think about her pressure as bad. don't do this, but there's good peer pressure. it is like dry january. right? the people that do -- i don't know where they are -- but the drop zone. my when january was fantastic. but dry january. they say it on social media. you see them out and want to order a drink.you can say to them, i thought you were doing dry january. stick to your goals. >> yeah. >> you can do it, hang out, keep tough. >> that's the exact same thing. being transparent with your friends, saying, i'm not spending money right now.

that can be used to kind of avoid the awkwardness, because it is now a part of a larger bit or joke. >> what has been the eaction to you talking about loud budgeting? >> i feel like it has been positive. i think people feel a little bit of relief with a lot of pressure to spend, especially when you're seeing so many products advertised to you all the time, or lifestyle that are not very attainable. >> instead of saying what you are saying, no to, what are you saying, yes. no to eating out and drinking so much, no to spending so much on that. no to destination weddings. but wait, no, then, yes to saving more and being able to -- if something happened with the job, being able to afford expenses so you're not using credit card debt. or going into credit card debt. saying, yes to things that will empower you i think it is important. >> lucas? if you could tell me to go somewhere -- how old are you? >> 26. >> that is perfect. a lot of people your age really bore the brunt of a lot of this from the pandemic. >> yes. >> so many came out of it.

probably this work, let's just go crazy. right? all the trips you couldn't pick, the meals you couldn't eat, depending where you live. you feel like it is rolling over now? a lot of people your age might have got themselves a lot of series that was kind of that, screw it, i'm going to live for the moment. >> and didn't have to pay student loans all the time either. >> that's true. honestly, coming off the pandemic with the prices still inflated, and student loan repayment of this >> they are back in. >> yeah. i actually feel like it is more a bit of a lockdown, and that is why this story as kind of taken hold. >> one more. >> yes? >> we cover, every day, is that depend on spending for their bottom line. if loud budgeting really takes off, do you think we're going to start to see a hit to the bottom line of starbucks, chipotle, altar the complexion of companies like ulta? >> if anything, they can to get

i think the only people that are kind moving into the workforce should keep the money for right now. >> where do you live? >> i live in new york. >> what you do? >> i don't know. i am a comedian. >> do you laugh your way through? >> i left my way through it, throw a kiss in the mirror. it's insane. >> i don't know how you guys do it. how is it possible? it is crazy. >> it is impossible. i really don't know how we do it. but i think the whole purpose of loud budgeting is choosing what you want to spend money on or not, skip a coffee date and be a millionaire. it is budget your time and money to what you are passionate about and what you want to do. don't be roped to anything else. >> that is great. lots of people like lucas don't watch "the kardashians" to see that is what everybody is doing. people -- no, no -- they are figuring it out. we can figure it out together. can we figure it out together? >> lucas, thank you. sharon, thank you for coming in. appreciate it. still ahead, from impossible burgers to this paul- civil kibble, p, a, w, it is a

pun. last time ever on television. i a dad, it is a joke. looking up at plant-based food for pets coming up.

despite a lot of hype and hope, with a strong launch, the plant-based meat market faltered quickly because plant-based meat. all of it, high prices and negativity about taste and potential health -- or lack there of -- but that is for us humans. what about pets? right animal joining us in our continuing look on diet related startups. diana? >> meat in the production of it is harmful to the environment insane sources of methane emissions from cows. what's also insane is 25% of

the meat consent is from pet foods. who knew? just as for humans, plant-based foods is big business, but will it have a say in headwinds? pet parents are particular breed. it's no surprise that the idea of that food that is not only healthier for their canines, but also for the planet, gaining in popularity. companies like natural balance, hello, nestle's purina and for your startup called wilder that are fighting plant-based pet food profitable. >> next five years, this market can be from 10% to 50% of the u.s. market, either plant-four or fully-plant-based product. >> betancourt says his company focused on nutrition and noted that dogs are omnivores, and can survive, like humans, on plant-based proteins. >> we put together with veterinarians, and nutrition, vets to make sure it had all

the essential proteins, the fats, the carbide is, the vitamin and minerals. >> he noted studies that have shown plant-based it may even be healthier, but it all comes at a premium. and while the food is up to 20% more offensive than meat-based products, betancourt says, once they scale and the market grows, vices should come down, and that is attractive to investors like his mentors. >> our from with the firm doesn't want anybody to trade off the value in order to go with another plan. when you go find an investment where this is much better for your pets, much better for the planet, therefore, it is the thing that is improving your life, then we are really excited about it. >> in addition to at one ventures, while they are backed by bridgette smith, mark cuban's radical investments, and mars' pet care fund, total funding so far, $37 million.

while the earth is now also testing plant-based cat food. cats are not omnivores. they're carnivores. but the wild earth ceo says they developed this with veterinarians and veterinary nutritionists and supplemented it with all the essential nutrients cats need to survive. to thrive, the question is, will they like it. >> if they're hungry enough, they will eat it. that was my theory raising children. if you are hungry enough of this >> that is your theory raising children? if they're hungry enough to eat it. really? >> the interesting thing is, they're doing this because they think it is going to make a dent in my mentally? >> yes. when we talk about meat, might we have plant-based meat market? not just because of health, because of environment. we have done this on the visions when i will not go back to that. it is a major problem for the environment. going plant-based is better for emissions, and of course, there is the health side. as they said, they believe is

it healthier for your pets and pet parents want that. i'm not a pet parent. >> no, no. listen, -- >> how many dogs do you have? >> my dog, olive, passed away a year ago. thank you for reminding me. there is a think you should know >> somebody needs to give me a heads up about the dog that died. >> it's okay. >> i have two dogs, by the way. >> you spoiled them. right? >> i pet them. they love that. >> this is why they don't like -- >> my one dog, female, i walk in, she does flips in the air because i'm awesome. i don't know, plant-based food? if we get it, i would try it like dog food. want to know what you are giving your doctor try the dog food? >> that is how you used to do. diana olick, looking at me like -- >> yeah, not going to try it. >> plant-based, might be good. coming up, drilling down on big oil. talking energy prices with ceo jon chrisman . he will give us the details live from the lead investor oasis when "power lunch" returns.

notable names of black ceos in the fortune 500, including tia chief brown-duncan, marvin ellison at lowe's, and the latest edition of tony town swiftly, joining science applications international corporation in october. they're among the eight ceos in the fortune 500 are black. that's less than 2% on the list. still, it is a record number. ar eern.ing black heritage, i'm shonppso e transforming and businesses need to navigate the changing landscape to stay ahead. when you partner with barclays, every change leads to a bold possibility. you have the vision. we have the insights, financial solutions and global perspectives to help you make it real. barclays corporate and investment bank powering possible. [disconcerting stomach gurgle] not again.

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>> welcome back to power lunch. if you're wondering why brian and i are sitting here today, sometimes we wonder the same thing. what have we done with tyler? well, don't worry. he's safe and sound, he's warm, he's at the sweet investor oasis in phoenix. hello, tyler. >> hello, contessa. it's great out here, it's about 70 degrees, very nice, you see, i'm in a kind of mediterranean setting here, at this meet investor oasis, which has been a very interesting morning. heavily tilted towards hearing from the ceos of energy related companies, something that i wish brian was here to enjoy, and teach me about, because he knows

so much more about energy than i do. but it's been a good lesson talking to vicky hall of occidental petroleum. and john chriesman of apa, also known as apache, earlier today. you might know brian, that they recently brought callan petroleum, a large provider of production company in the permian basin, where so much activity has been taking place. and so much of the consolidation activity in recent years has taken place. this was their first big deal in a long time. four and a half billion dollars increases their footprint, gives them more resources to deal with, i asked mr. chriesman what he sees oil prices, and he had an interesting answer that bears on the political situation in america. let's listen. >> i think we're in a world today where it's clearly an election year, historically, election years have been hard, there's a lot of battled to try to keep prices own. everything there. like i said, we think that

inventory is at a pretty good place. you get to the back half of this year, we'll see some draws, we are very constructive on oil. >> a little bit constructive on oil in the long term. as he said there, which is interesting, political years tend to be hard in the oil business. hard for the oil business may mean good for the consumers of gasoline, because politicians tend to like to keep a lid on oil and gasoline prices in election years. we will see if that pressure keeps prices where they are. last week, a rough week for oil prices, roughest week since october. a lot of the oil companies, down, on the, year including apa, down 14% year to date, 21% over the past six months. as oil prices have fallen back. so, it's a very interesting conference here, a lot of talk about energy with occipitally a, a lot of talk about carbon capture, which is basically taking the gas out of the atmosphere, pumping it back into

the rock, where it is stored permanently, and it helps through the sale of carbon credits, to create a net zero position for companies like airline businesses, logistics businesses, companies with large fleets of trucks. so folks, that's it from the's made investor oasis. i will see you tomorrow. >> fantastic stuff, tyler, i was just out there. i did want to come back. it is just perfect out there this time of year. >> great time of year out here, really fantastic. beautiful place, camel back is right to my left up there. i'd like to go. you have to? it i want to hike it. but i've always said want to, i've never done it. >> i did it, i've done it, i'll tell you what, if for some reason it gets harder every time i get fatter, it gets harder. [laughter] >> that's what happens, my friend. >> it's a legit hike, be careful. be careful. with the extra maths, up it's harder. >> you have to be stronger to

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we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones >> 90 seconds left in the show. more stories you need to know, severe storm system began moving through california yesterday, marking the start of what's expected to be days worth of heavy rain and snow, wind, more than 500,000 california customers don't have power as of this morning. the national weather service says that storm could be potentially historic, here's what's really interesting. fewer than 2% of californians have flood insurance. and only half of those in high- risk areas. so we will have to see what the impact is there. >> it's a year's worth of rain in a day, and the reservoir, so many of them are already nearly fuller, they could over. talked social media snap says monday it will lay off 10% of its global workforce, 500 ploys

in part to promote in-person -- marks nearly 32,000 job cots across 122 tech companies already this year. the pink slips keep coming. >> and dartmouth college reinstating sat requirements for next year's class to the applicants, making it the first time he lead to reverse course on test optional policies, the schools says standardized test scores help predict first year coach performance is even better than high school grades to. so sorry, you are back to filling in the bubbles. >> there, go back to the future. by the way, tune in tonight, he said, there we go, last call, kyle bass, many more will talk about china slow rolling collapse. >> see, then closing bell starts right now. thank so much, welcome to closing bell. i'm scott walker, live from post 9 here at this make-or- break hour starting with stocks amid pressure with questions about the durability of this rally. we'll ask our experts over this final sth