♪ good afternoon, everybody. welcome to "power lunch" alongside courtney reagan, i'm tyler mathis. glad you could join us. stocks are selling off today after a hotter than expected read on inflation this morning. right now the dow is down 600 points on the button, court. >> as for the s&p 500, saying good-bye to that 5,000 level, at least for now. the nasdaq slightly underperforming today, losses across the magnificent seven, nvidia bucking the down trend. we'll have more on that later. >> no surprise. but the interest rate sensitive stocks are leading the way lower. look at the losses on some of

the big home builders. we'll check in on lots of different stocks and sectors throughout the hour. let's begin with mike santoli and the bigger picture. is today's drop an appropriate reaction to the cpi, a needed pullback, something as we heard just a moment ago a pullback would be a welcome thing here. >> yeah, i think all of that is in play, tyler. the setup wasat a pretty extended market. it was getting a bit overheated. everybody was saying this for a while on that stretch to 5,000. in fact, we haven't had a 3% pullback in the s&p 500 since october. that's an unusually long stretch of time without having at least a decent dip. we're not there yet. you have to go down another percent to get to that 3%. i think that makes sense just tactically to say that, you know, we've got an lot of profits built up that you can take. now, also, the cpi report it did sort of disturb the happy picture of a glide path toward 2% inflation rate and the soft landing that had been largely assumed and priced in for now.

i think that whether, in fact, it changes materially what the fed does, i'm kind of less interested in that. i don't think stocks are really hinged on when and how much the fed cuts. the economy stays strong. but market interest rates are going up, right? 10-year yield is above that 4.25 threshold, back to where it was before the december fed meeting. so a good excuse and really credence behind it for a gut check in the equity market. >> a gut check, but as i look at the cpi numbers, am i wrong? but it looked like inflation was actually moving a little bit lower, just not as fast as predictions. >> no, that's true. i think that you're able to kind of view this through a couple different lenses. one of which is for those who are expecting the path down toward target to be a little bumpier, you got something to work with here because core, you know, core shelter, core services inflation is not cooperating that well. i don't think it's alarming necessarily. first of all, the pce is the fed's inflation target.

that's not something that's a one to one with the cpi. so again, look, we're only down in the equity indexes to where we were a week ago. so, you could certainly have a lot more give back and still not have it really change the overall premise of this rally fundamental will in terms of resilient economy and the fed looking in months ahead to ease. >> all right. mike, thank you very much. mike santoli reporting for us. we're also seeing a big reaction to that cpi report in the bond market. interest rates moving markedly higher. rick santelli joins us now from chicago. hi, rick. >> hi, tyler. indeed. it's a hot day and it's due to hot cpi. let's start at the beginning. let's look at year over year core cpi. came out 3 .9%. that's the ten-year chart. nobody thought inflation would be linnier. now, here is the most important chart, in my opinion, and i'll

tell you why in one second. this is a year over year cpi core, which they start the index. this is the index that everything is derived from. when you say up .3, down .3, they look three different indexes. this is the year over year core. it started in 1957. today it was 3.14.44, it's never been higher. now here is the rub, okay. you heard all the analysts today, smart economists, erb with one refrain and that is, wow, there's the seasonality, january. it's called a reset of prices. it happens at the beginning of the year prices go up. but don't worry because january and february most likely will moderate. so what they're saying is that that chart i just showed you 314.44, if that goes sideways for the next couple of months, inflation rate will be 0. but yet prices, if you use the cpi calculator on the bls website are still 20% higher

based on cpi than they were pre-covid. so, part of it is wall street. this will underpin the fed's rate cutting cycle. but it doesn't make the middle class feel very happy. as to tyler's view of the rates, wow. look at intraday of 2-year, big pop. now, 2-year notes right now are on pace for not only the highest yield close of the year, but in two months. 10-year, 2.5 months. in the grand scheme of things, interest rates continue to look firm, but don't dispense the notion that today's report doesn't have some good news because when the rate of chains goes flat it most likely could be a green light for the beginning at some point nearby of the easing cycle. courtney, tyler, back to you. >> good stuff, rick. thank you very much. the dow tracking for its worst day in nearly a year following that hotter than expected cpi number. here with more on the sell-off is mona, principal and senior

investment strategist at edward jones. we'll just start out, mona, you think this is an appropriate reaction to the data. rick and others bring up a very interesting point that january being reset of prices. >> excellent point. we moved almost 22% higher in a straight line in the s&p 500 since october 27th of 2023. were we due for a pullback, a correction, period of consolidation, the abc there is probably yes. and was this cpi report a catalyst to gets through? perhaps. and look, there was some disappointing data in the cpi. we saw shelter and rent components higher than we like to see. we saw headline inflation which we thought we would get a two handle on come in at 3.1%. we look broadly, the trend in inflation is still moving in the right direction. we were at 3.4% on headline last month. 3.1% this month. core inflation remains flat at 3.9%. we think there are signals that could get us to more moderating

trend even there. specifically we think the realtime data in shelter and rent pricing is moving in the right direction and that will show up with a lag in the months ahead. so, more broadly speaking, we do think that we could be due for a correction but we don't see any tenants in place for correction bear market of any sorts because we see better inflation trends, fed pivoting later this year and by the way we see an economy holding up pretty well. >> and to your point there on the fed, when the fed looks at this, are they also going to look at the trend and say, well, look, we're going in the right direction even if some of those components were hotter than expected, particularly that shelter and rent or does this push out potentially their decision to cut interest rates, a meeting or so beyond maybe where they would have before this data came out? >> yeah. look, the fed has already told us that they want to be patient here. and they earned that right. the economy was going in the right direction. and inflation was moving lower, even as we got this better economic growth.

so, they can certainly be patient here, we think, until probably the june meeting. and we think now the market is pricing in somewhat of amore reasonable and better aligned rate cuts with what the fed is expecting as well. the market looking at four rate cuts beginning in june. we're in the same camp, three to four rate cuts probably beginning in that june time frame. keep in mind, if the fed were to do more than that, 5, 6 plus it's probably because the economy faltered in some way. less than that, 0, 1 or 2 it's probably because inflation is continuing to remain sticky and the economy is also above expectations in more meaningful way. we think there's a sweet spot that's emerging that's three to four rate cuts that gets the fed gradually back towards a more normalized level of interest rates. so we think what happened this morning is actually probably a healthy adjustment. >> we're looking at the dow now down 660 some odd points. i guess that would be the session low. i'm wondering, the idea of rate cuts is anything but off the

table now. it just looks like the trajectory may be longer to begin, maybe a little shallower, not as steep of decline, maybe not as many. but so long as the stock market is anticipating interest rate cuts, there's really no impediment, is there, for it to continue to move higher? in other words, it's not as though the fed or anybody is saying, hey, rate cuts are done. it's just a question of that anticipation before they start? >> yeah. i think that's well said, tyler. look, i think when we think about what could create or drive a bear market, you know, usually it's if you're in a recession or entering a recession. it's also if the fed is raising rates. and thirdly, you have your unknown geopolitical risks or external shock that could cause disruption to the system. neither of those three are in place today. so, which makes us kind of feel like if we're heading towards a

period of volatility, correction, that's an opportunity for the market participants that didn't get involved late last year when we got the rapid. position yourself for that potential for that fed rate cutting psych thal we see emerging in the back half of this year. >> thank you, mona. good to see you. mona mahajan of edwards jones. appreciate it. the s&p yielding the 5,000 market. 49.38. nasdaq down 2% at 15623. tech hit hard. the naz down is down 2%. software and services etf, the fxw down more than 2.5%. after the break, we'll speak to an analyst who is ragz his price targets on a couple key tech names. there you see them. plus, consumer stocks in focus. coke and mollson coors raising prices. earnings better than expected. consumer stocks have been

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♪ that was session lows down 672 points, welcome back to "power lunch." market losses are accelerating there and the nasdaq, too, down nearly 2% today after a hotter than expected cpi report this morning. and among those laggards are megacap, tech, meta, amazon. my next guest upped his prices, especially meta, citing upside momentum driven by ai. joining us now is rob sanderson, senior internet analyst at loop

capital markets. rob, thank you for joining us. let's start with meta, that was a big price target hike. i guess maybe today not with standing. explain some of your reasoning there for why you see the upside potential in meta? >> yeah, there's a lot of momentum. surprise on up the side, very strong fourth quarter, but the outlook was really what caught people off guard. and you know, really unexpected. revenue growth expected to accelerate by around 400 bases points to 29%. the high end, which is obviously very impressive on numbers that are so large and comparison that gets 700 bases points tougher, an acceleration on that kind of comp at this kind of scale is just, you know, kind of unheard of. it shows a lot of momentum behind the businesses. i think they found a lot of unlocks in applying artificial intelligence to make advertising easier. that's i think the underlying story behind all that momentum. and yeah, there's a lot to like

at meta. >> before we move on to some of your other names, i know ai is the buzz word across all tech companies. and really i guess almost all companies in general these days. but is there a risk as we go into this very potentially contentious elections cycle of ai being used for not so good across social media platforms like meta? >> yeah. and this company certainly has history on such issues. so, it is definitely going to be a growing focus through the year. you know, company has invested a lot of time and attention and resources and frankly money in just keeping bad actors off the site. that's always a cat and mouse game. there's always going to be potential for ill intent on such a wide scale and influential platform especially into an election cycle. so, be assured, you know, it won't come as a surprise. they're preparing for such interference. we'll see how they manage

through this. >> what's working best for meth ta? >> i think it's the ability for them to make it easier for the long tail of advertisers. it's small and medium businesses that, you know, really what make meta the envy of the industry. they stopped disclosing this mettic three year ago when they hit 10 million. you should definitely assume it continues to grow. a lot of focus on how the ai platforms are doing a better job of targeting for large advertiser. but it appears to me that meta really cracked the code and is now unlocking a lot of value for the smaller, you know, mom and pops. they are comparing against pretty disruptive period where the changes on the apple platform, you know, i think really took lot of time for those smaller advertisers to adjust. >> rob, i want to move on to google. i understand you have this as a hold but you upped the price target here from 140 to $155. interesting, though, google ads

up just 11% in the fourth quarter while meta grew their advertising revenues by 24%. certainly not seeing at least as much momentum as meta here. we have the dow down to alert viewers down 070 points now. good for 1.8%. rob, back to google here. what do you like here that you see upward momentum getting us closer to 155 when maybe it does not have the same types of momentum in an area like advertising as meta? >> yeah. the google businesses are performing well and management is very focussed on cost discipline. i think the issue that maybe holds it back compared to some of its megacap peers, google is seeing more competitive pressure than we have seen for a very long time. the ad business, it's the growth in social and the big numbers that meta is putting up. retail media is becoming more of a competitive thread, especially amazon. but really, you know, the market

is very focussed on ai and particularly generative ai as you mentioned earlier. it's not clear that google is going to be able to maintain their dominance. it's been the best technology company for a couple decades. and now they're not leading the way. we saw reports last night that open ai reached $2 billion revenue run rate in the fourth quarter, the fastest company in history to do that. google has been investing more in ai than anybody forever. and here they are with a start-up stealing the show. that's going to i think graze this wall of worry for investors and probably hold the stock back. >> all right, rob, thank you very much. rob sanderson, we appreciate your time today. >> good. thank you. let's talk about nvidia as we haven't mentioned the last few minutes. it turned lower after spending most of the morning in the green following positive analyst commentary. this ai darling is not bullet proof. christina parts nevada louse looking at the challenges it's

facing and it has earnings next week. >> yes, next wednesday. you make a joke about oh we haven't spoken about nvidia in a while. i decided to take a more contrarian take. this company surpassed amazon in market cap yesterday and a bit today witnessed a remarkable $500 increase in its share price over just a 52-week period. so it seems like this stock is pretty much invisible to bearish sentiments with no sell notes from analyst in over nine months it's easy to overlook potential concerns. but amid this ai euphoria, there are some cautionary flags that emerge. wolf research, for example, highlighting easing supply constraints which may dampen chip command in the later after of this year into 2025. morgan stanley questions the sustainability forecasting possible plateau in 2025. barclays credit team, not sale tide, credit, the industry transitions from training to the

inference phrase within large language models they need fewer gpus and heightened competition from industry giants, amd, intel and also megacap firms like meta and amazon creating their own in-house custom chips. examples of what could erode nvidia's gpu dominance. then, of course, you have looming threats of further tariffs to china especially under a trump presidency which would drastically impact nvidia's data center sales. nvidia venture capital made 33 investments between january and october 2023. with the majority of those in q3 and they suggest that nvidia is actually financing startups who use and buy nvidia technology which implies that nvidia could be possibly funding its own customer. again, this comes only from one credit note. but 92% of sale side sanalysts say nvidia is still a high.

850 bucks heading into earnings out next wednesday. >> yeah. apropos those earnings that come out next wednesday, here is a stock that is on its tippy toes and it is often stocks that are on their tippy toes that are vulnerable if there's anything in that earnings report that is in the least bit nitpickable. >> you're right. which is -- the options market is implying some type of 8 to 9% move in the stock post earnings. based off of all the analyst points and customer checks and inventory checks seems like the backlog issue is still a concern in the near term should help nvidia get that supply customers are still racing over each other to try to get these gpus. so i'm sure nvidia will make a comment about that. they'll comment about their ai event on march 18th where we'll hear more details. so there's a lot of positive factors that could help this stock propel forward even if they don't have that massive

beat that we saw the previous two quarters. >> yeah. absolutely. christina, thank you very much. you'll be following it all for us i'm sure. after the break, we'll dive into moves in the energy space, check out the solar stocks, the tan etf down 5%. we'll be right back. powering sustainable growth in a changing world. powering financial solutions that transform industries. powering innovation with access to capital. powering critical decisions with precise data and insights. powering seamless execution in evolving markets. we deliver our entire global bank to power new possibilities for you. barclays corporate and investment bank. powering possible.

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welcome back. the dow is now down 715 points, closing in on 2%. we slid more than 100 points in just the last half hour or so. let's zero in meantime on energy. the cold weather and snow on the east coast yes, the first snow of scale in about two years. helping nat gas today. pippa stevens a look at that and all the big movers in energy. >> it's not helping. so we have the snow on the ground outside. the nat gas is down another 4% today and falling to the lowest level since july of 2020. continues to be these four key head winds that's elevated storage, record production, this really warm temperatures that we've seen apart from today and that one brief spell in january and also the outage one of free

port's -- one of their three l & g trains. this drop in nat gas at 169 bringing down nat gas stocks. so names like eqt, chesapeake and southwestern all in the red today. notably eqt is the largest nat gas producer in the u.s. and they report earnings after the bell today. we'll here what they say. moving other to the oil in the green and shrugging off the hotter than expected cpi report. several things including lower russian exports as well as technical factors helping with wti above the moving arches. this is not enough to lift energy stocks which will lower across the board. there are a few notable ones bucking the trend. you see marathon petroleum and phillips 66, two names in the green. then finally, one name, one area that's definitely not shrugging off the inflation report, you see it there, solar stocks. the tan down almost 6%. it is those residential

installers that are all down more than 10%. they are very subject to higher rates. makes capital expenses more costly and systems more costly for consumers which leads to softer demand. so a lot moving within energy broadly today. >> solar down. you explained that well. but i still don't quite understand the move in crude oil today and why that's lower. >> crude has been going sideways for a very long time. i think that we have seen these oscillations between the current $78 level. so i i don't think there's so much of a fundamental shift today. but it is above those key moving averages. we did see some slow down in the russian export. but not a meaningful move by any means. i did say one trader said the next thing that's going to impact prices will be the fed rate cut. so we'll be trading in a range for quite some time it would appear. >> shrugging off the cpi report which is bucking the trend of almost ere other asset class it seems today. thank you very much, pippa. let's get other to kate rogers for a cnbc news update.

hey, kate. hey, court. president biden called on the house of representatives to quickly take up the supplemental aid bill, saying opposing it and the ukraine aid is playing into putin's hands and blasted former president trump's comments, criticizing nato. nato will reportedly announce tomorrow that most of its member nations will hit defense spending targets this year. that's according to a report in the financial times, which says the alliance will report that 18 of 31 members will hit the target of spending 2% of gross gdp on defense and that it expects two thirds of the alliance to hit -- eventually hit that goal in 2024. and in an iconic sight visible after nearly five year. the new spire top notre dame cathedral finally revealed a it have 2019 fire that nearly destroyed it. the original spire crumbled as the flames engulfed the cathedral. >> wonderful thing to see that go back up. that was a frightening day. thank you, kate. we'll continue to watch all

the market action as you see there the dow down 700 points on the nose. continuing to make new session lows. the nasdaq off more than 2%. s&p 500 down more than three quarters of a percent. concerns about the consumer and fed weighing on stocks following a cpi report that came in hotter than forecast. that is causing big losses for payment stocks, like affirm, down 11%. more on that in a minute. a quick power check on the positive side, eco lab up about 8%. moodies down roughly the same. ♪ in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background]

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justify the stock's recent run up. block getting hit despite upgrade, benchmark initiating that stock. 30% upside to that stock. they say management has, quote, plenty of runway for increased profitability. then you have paypal, another name that's lower today, continuing that cost-cutting mission turn around plan under new ceo. shares lower. back other to you. >> thank you very much, kate. let's keep our focus on the consumer, coca coca and coors resulting reports. both reporting higher prices. coke mentioned the word inflation 36 times in its 67 minute call and you spoke with the ceo also. >> i did. you know what's funny about that, courtney, clearly prices are still driving growth at these companies, food and beverage companies. when you look at the breakdown of price mix or net pricing, global net pricing. that's positive. and it's what's driving the ref knew growth.

however, it has come down -- and increasingly what i'm hearing from these ceos and executives that prices are moving back to normalized levels, normal rate of inflation 3 to 4%. listen how they described the pricing environment. >> really getting into the ballpark of cpi elevated levels. might be slightly harder to get from 3 to 2, but it's getting close to the kind of normalized levels. that's what we see in 2024. kind of a normalized level in the 95% of the business, with the overlay of hyper inflation. >> normalized is what i'm hearing about the inflationary environment with food, beverage and household product makers. now, inflation as i mentioned is still driving things. we saw 9, at least 9% pricing growth in the quarter, but to quincy's point a lot had to do with the hyperinflationary environments where they operate,

countries like argentina or turkey, outsized pressures. that's also driving a big currency hit as well. and i'll also just say on coors f you look at the conference call and hear what they had to say, expect net pricing to revert to historical levels. that's what the company says. u.s. and canada approximately 1 to 2%. courtney and tyler, disinflation is happening in the food and bench space. it's coming back down to normal levels but might not feel that way to ordinary americans shopping, all of us at the grocery store, because they're so much higher than they were several years ago pre-covid. >> let me understand the hyperinflation part of this. in those countries where it is a problem, like argentina. >> yes mplgt with issue there is that the consumer does not have the money to spend on a little luxury like a coca-cola. >> that and the inflation rates are just sky high. >> they're so high. >> 50% inflation rate.

so coca-cola has to price their items so much higher on the grocery store shelves there. so, yes. >> that becomes a barrier to the consumer to buy it. >> absolutely. and it also adds to pricing growth in the top line because coca-cola is raising prices to that extent. but it hurts them on the currency impact because the currency get devalued so much that that chips away at all that money when coke -- because it's an american company, bring it back home. >> talk to us -- >> sara, as i think about this, some people are just very loyal to coke or pepsi. if that's a drink that they drink fairly regularly. it seems to me like the demand is fairly inelastic, maybe that's only in countries where we have inflation under control like the united states. we're not talking about argentina, i guess. is that wrong? do these companies really need to revert back to historical levels or can they afford to keep pricing where it's gone? >> well, i think that they tend

to track the cost inflex. if the cost is coming down, then they're not going -- they say, they're not going to dupe consumers. you're right they're consumer staples. but every consumer has a pain threshold. and what we have seen beyond coke really, coke had higher volume growth, so did coors. but the theme of the earnings this season for packaged goods and beverage companies, courtney, has been lower volumes. we have seen the volumes go negative. there is a point which the consumer says, no more. and it really starts to hurt. so what the companies need to figure out right now is that balance where they are still growing and still getting that pricing but at the same time getting volumes back up. and i would add another complication is the white house really made a big political point lately of pointing their finger at food companies, at grocery companies, for keeping margins high at a time where their costs are falling down. bill bray nard was on "squawk on

the street" from the administration and we talked about the today cpi report and food at home, inflation, did see a jump month over month, but year over year it's come down for about 17 months straight. and she said, look, these food companies need to keep bringing their prices down to match their costs. so they're really being held to account when it comes to the administration looking for escape goats on the inflation story. >> sar rarks thank you very much. valentine's day is tomorrow, hint hint everyone. the market for fine jewelry changed dramatically in the last several years. in 2020, only 2% of engagement ring diamondssold were lab grown. by 2023, though, 50% of engagement ring diamonds were lab grown, three years. which are chemically, optically, physically certified real diamonds. lab grown costs 75 to 90% less than a natural diamond.

natural diamond prices are down 35 to 45% in just the last 18 months. it's opening up the market for diamonds to more consumers. >> the jewelry industry worldwide is roughly $330 billion in revenue. i think that within a decade gets to a trillion dollars. it triples. >> another trend, brilliant earth ceo tell me consumers, particularly gen z are leaning more toward colored gem stones to express individuality. the world supply of natural gem stones is dwindling. you put that together, gem stone prices are appreciating faster than the s&p 500. up 36% a year over the last three years. ruby prices are up 17%. i bought both a ruby over the last three years because they are my children's birthstone. i was surprised at the prices.

now i know why. >> you can't put an s&p 500 on your finger. >> you can't. >> you cannot do that. >> you really can't. >> would it matter to you if you found out that jared gave you a lab-grown diamond as opposed to a natural mined diamond? >> i think several years ago it might have. but now that i really understand that lab grown diamonds are chemically, physically, optically the same as a natural diamond that came from the earth, i don't think it would. the ftc certified it. from what i have come to know, the more perfect and natural diamond is, the harder it is for a jeweler to tell them apart under the eye glasses. they cannot be told apart because they are real, in fact. >> interesting. courtney, thank you. >> fascinating. still ahead, we'll get technical sport. which name we're watching for the long haul when "power lunch" returns.

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♪ welcome back to "power lunch." time now for some technical support. we have three stocks making some technical moves that we want to bring into focus for you. our chartist today is jay woods. first up, the russell small cap etf, jay, you say the relevance of this chart is to show the rally may be broadening out, maybe not so much today, russell 2,000 down a good bit. >> we're hoping that this rallies out. what we had here is a ridiculously long base, about 18 months. it look liked it was breaking out. it broke out about 200 and failed. a lot of people call this a bull trap. and if it was a bull trap, we would have had a fast move back down. we didn't this time. something changed. it held the 50-day moving average. we're testing it again right now. we are at that threshold, if you're trading this, you're

watching 194 very carefully. i probably stay away from it and buy it little more on strength. but, 49% of this index are industrials, financials, and healthcare. those sectors are starting to act stronger. except for the regional banks and the financials. but it looks like it's poised where it's finally going to get out of this chop zone, this hot mess zone as we like to call it. and hold these moving averages. so any pullback, i think, i think the story has changed. i think we can buy it on weakness and risk/reward -- >> the movinge ing average is t lavender. what is the taupe colored one. >> i learn something new everyday. that's 200. it's a mess, like i said. what you want to watch is this 200 level and want to watch it, not make a new low. get out of this chop zone. it's going to take some time. but over the long-term i think we rally and we break out of this zone.

we form maybe little higher. >> let's go to coin. shares down. coin reports fourth quarter results thursday. what are we seeing in the technicals on that one. >> very important to watch earnings. moves of plus or mie mus 8%. we're watching weakness today. the stock made a tremendous run after breaking out this nice base. it ran to about 190, 187 to be exact. and it's pulled back. where did it pull back? old resistance became support. so we're watching this level very closely. i think any pullback on earnings, given that bitcoin is at 50,000 and ginn that bitcoin has little ma legitimacy, asset base here to stay, it is poised to reverse and climb higher, good entry points around this 115 to to area. run back towards 190. lot more to reverse over the long term. it spiked as high as 387, i believe. i don't think it will go that tremendously to the high side.

but the risk/reward setup the entry points are there. you can buy on weakness if it holds, 120 to 115. on strength iterallies to 190. two possible entry points on a miss or hit with its earnings on thursday. let's move on to ice intercontinental exchange. what about this one? >> the long term, this is a stock that over the long term is in such a nice place. and what happened? we had two blips. one was covid. everyone suffered during covid. then 2022, bear market. they made a big acquisition. a company called black knight in the mortgage space, mortgage technology. that acquisition has finally been brought into the fold. and what have we seen? we have seen slow and steady strength, like we have seen in the past over ten years. it's at this 135 level. it just broke out on an intraday. now, this is ten years weekly. so it gives you a broad base. i don't want to just pick stocks you can trade.

i want to pick stocks you can buy, put away for the long-term and this you won't worry about. exchanges are good places to be historically. and ice is the premiere of the three exchanges i follow. nasdaq and cme. i think it's poised, if it comes back on weakness, again, to buy over the long term. this 125 to 130 area is a good pullback. breaks out, i think we start another long channel to the upside. >> interesting. >> over the long term. >> ice. not on the rocks. jay, thanks. cou courtney. still ahead, innovation is sweeping the agricultural industrial. but as some farmers struggle to stay afloat, will demand for these new high-tech tools dwindle. our own jane wells gives us the details next. ♪ 57% of black business owners were denied bank loans at least once when starting their business. that's compared to 37% of non-black owners. despite this, many african-american entrepreneurs report feeling optimistic about

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>> welcome back. from equipment now more innovative than ever. the manufacturers will have to really stretch their creative when it comes to reeling in buyers. our owner jane well is joins us from the ag expo in tulare, california. that i pronounce that right, james? >> you are very close, tyler. about 100,000 people are expected out here. this is a tractor from new holland which was part of cnh. what's new this year over the cab there they've installed lidar. light detection, and radar. as you go into the hayfield back in the sense that it can control speed and the steering to optimize flow, and make the operator's job easier. >> so, less fatigue. we've seen some fuel savings as well as the ability to run longer days. >> now, the lidar is an

aftermarket add-on. you don't have to buy a whole new system. were talking over $600,000 here. that's much cheaper, and that's a good idea. commodity prices are down. tractor sales are down, and farm incomes are going to be done for the second year in a row. you don't even have to pay for that one. yeah, ryan jacobson is a fourth- generation almond grower up the road. but, he's coming off a tough year. he's not in a buying mood yet. >> i am bullish that maybe in the next 18 months we are going to see is hopefully going to the bottom of the cycle already, and maybe slowly starting to climb out of that. >> so, in this environment manufacturers have to get creative. dear and gus were they've got the first electric optometrist creator, and this up tom and mrs. prayer. maybe a farmer can just pay by the acre? >> there's these interesting business models that we are entertaining around spurning as a service.

>> so, dear reports on thursday. cnh tomorrow, and guys it's all about their outlook. we will have to watch. back to you. >> so, tell us more about spraying as a service. you would come in, instead of buying your own equipment to do it yourself you would hire a vendor to do it? >> exactly. that's sort of something that in least there trying to think of other ideas in this environment. again, this is a huge investment, and you hold onto it for a long time. were they already have software services on many of these items. maybe they can start leasing out the equipment too that is sort of way or bringing out the sprayers as you say. maybe that's a more affordable enticing way to get sales. you know, until farm incomes start to turn around and crop prices start to go back up. >> it looks a beautiful day in tulare, california. jane, thanks very much. great to see you. let's take you through the markets right now. the day where the dow

industrials are having their worst day percent decline. now, 750. do you mean point decline since last march. that caught me by surprise. that is i'm assured an accurate representation to get the nasdaq down 363. easy the intraday on the dow industrials. nasdaq down the more than 2% of the other indexes down about the same. a little less than 2%. let's take a look at the 10 year yield as it climbs up close once again. well, it now is about 4.3%. it was settling most of the morning there at the high sort of 4.28, 4.29 level as interest rates rise in the anticipation that the fed will go less quick, and less frequent in their interest rate cutting regime. and maybe won't start until later in the year. >> right. when you're looking at sectors real estate under pressure which makes sense. interest rate sensitive down more than 3%. healthcare is performing the best, but it's also down more than 1% here on the session.

then the right sort of in the middle is financials. again, very interest-rate sensitive down about 2%. >> those homebuilders we just showed right there. with two, three, 4% declines in person. scott will be around just a moment to carry you to the close hearing in this very -- where the winners and losers separated. the final hour is coming up. >> closing bell does start right after this quick break. easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley

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