them and i still think it goes lower. >> okay. i said last week that was my final trade and i'll see them today and two winners in the race of ai for everyday tools. google and microsoft. it's foolish to sell based on the bad launch. >> down year to date along with apple and watch that, jimmy, quick. >> union pacific, solid industrial. >> thanks, everybody. i'll see all of you on "closing bell" at 3:00 eastern. the exchange is now. all right. thanks very much, scott. welcome to "the exchange." i'm dominic chu in for kelly ev evans. a look at how the company is changing its messaging around artificial intelligence and how you want to be positioned in that stock going forward. also ahead, could warehouses be the next shoe to drop in commercial real estate? we look at the risks and the opportunities in that space ahead, and then the latest read on housing.

fresh data from ice on home prices and supply and how we're setting up for the important spring selling and buying season and that's coming up, but first, let's get a check on the markets overall which are relatively mixed and we're flat for most of the major indices and the dow is up 0.1% near session highs and we were down much earlier in the day and the s&p 500 just about flat on the session and the last trade, and the nasdaq composite 16,250 thereabouts off 0.2%. meanwhile, check out what's happening trendwise for many of the regional bank out there and basically green across the screen as people are starting to see some signs of value out there and perhaps getting a mean reversion trade and short covering and people taking out some of those bets on the down side and taking profits there. on the regional banking side, you can see the etf is doing relatively well and zions bancorp will be taking on the

s&p 500 this month and the up oncommunity bancorp is up three bucks a share on the big figure. bitcoin's rally continues right now. it was above 65,000 and now 66,000 earlier today and it's trading just a hair above 67,000, just around 66,900 from here. remember, the all-time high in november 10 of 2021 was was 68,982, let's call it 69,000 for all intents and purposes and keep an eye on bit coin prices. the european union levied an antitrust buy against the company and at the same time apple is unveiling its latest round of laptops and computer chips with plenty of focus on ai in those capabilities. for more, we are joined by our own steve kovac and deidre bosa, as well, and here for the trade is kim forest, the chief

investment officer over at boca capital partners and an apple shareholder, as well. steve, let's start with you on the current state of play with regard to apple, vis-a-vis, a massive find. one of the biggest finds in technology for eu history and the first one against apple. >> and just to put this in context here, this is a $2 billion u.s. fine and 1.8 in euros and you also have to look at what's coming this week and in europe it's going into full effect and that puts at risk 10% of annual global revenue from these companies. for apple that would be 40 billion with a "b" and if you think the $2 billion is a lot and take a look at potentially here if they'll break the rules that will go into effect later and since it broke we did hear from spotify and spotify is the company that started this complaint against apple and it's the same argument that we've been hearing for so long that they characterize as unfair fees

and of course, the eu sides with them and basically saying this is a win for them, but they don't believe apple will necessarily comply and he layers skepticism here and he points to actions apple has taken when these regulatory things happen and how apple finds ways kind of around it which, in fact, they'll do at the -- and apple is saying spat phi wouldn't be the market leader in streaming music if it warrsn't for the iphone and the e phone wouldn't be the iphone if it wasn't appetizing for people to buy and this will be a houge case of wht we'll see in the u.s. and we're expecting the antitrust suit to drop any day over similar items. this is a big, beefy case going on. >> it is also interesting, too,

because the way that apple frames it, they're not wrong that the installed base for ios is one of the main reasons why many of these apps get the traction that they do. what's kind of ironic that apple points out in their statement that spotify has 56% of the european streaming music market already. if what they're hinting at is spotify is alleging antitrust behavior which is the antitrust guy when it comes to music streaming in europe and how exactly does the next chapter play out in this appeal process, then? >> that is to be determined. so they are going to appeal, but more interesting is the dma process. they put out these rules and they were similar to this case in the pages and the like and apple laid up its idea for compliance with the europeans' new rules. we don't know, apple doesn't

know if those ideas are actually going to fit the letter of the law that the ec is looking for. so what the real next shoe to drop is when the ec sees these practices in action do they start investigating right away? do they start looking at apple and saying we might fine you the 10% of the global revenueif you don't change x, y and z and that is the letter of the law and that is the risk right there and apple is of course, making all kind of arguments against that saying. it puts security at risk of our users by letting these outside apps go on phones and the same arguments they've been making forever, but we'll see it in practice very soon. it's just a matter of days. >> so we'll pivot from that to the other story that's surrounding apple right now and that's what seemingly is for some investors a catch-up trade or a catch-up effort being made by apple to put itself back at the forefront of all of this investing in artificial intelligence. there are some folks, deirdre, who believe that ai is something

that apple has missed early on and that they'll now have to catch up to everybody else. >> i think that steve and i can agree that a their 2 billion fine apple is a rounding error. it's a speeding ticket at this point and it is how apple was perceived in terms of this generative ai arms race. so today they announced a new version of the macbook pro which uses the m3 chip and it's calling it the world's best ai computer. they are auto-filled and predictive capabilities and better features for images and it's an evolution of what we already know and are used to and that's what investors are taking issue with saying we don't have the big product. they're more ai-adjacent and they'll use an upsell cycle strategy and they'll put these features into the next generation of iphones and with the macbook computers and this

question, is it enough? and wall street is pretty divided here. there's some that think that apple does have to catch up to your point that they've been spending a lot less in rnd on sort of the future and what that will look like in the age of ai versus are they going to be able to do this because they have a 2 billion in installed base and they'll use edge computing and ai will sit on your phone or laptop. so that's sort of the debate in the market right now is where is apple in this ai race? >> deirdre, it was interesting only because clockwise capital and i were emailing back and forth. microsoft-apple specifically because they've swapped spaces in terms of the biggest out there and what not. one of the things he brought up was this idea that apple in the most current quarter that we have, the fourth quarter and it's december 31st had at least a spend for capex as a percentage of revenue that was

significantly smaller than what microsoft spends on capex as a percentage of revenue. >> yeah. >> how long do you think it will take before apple can convince investors that it was spending enough in order to be competitive in ai? >> well, they'll have to announce something big later this year which i know steve kovac has his eye on, as well and they'll come up with a cohesive strategy that leapfrogs apple and puts it into the conversation. this is exactly the chart that i was talking about and that caught our eye on tech check as well and it cost us a percentage of annual revenue and it's about 9% of its annual revenue last year and compare that to meta which we know has been building up its gps capacity and its infrastructure and then you have amazon and google, it's ahead of 17%. the idea that apple isn't spending as much as its percentage of an annual revenue

and it's a good question for steve, as well and i don't know how optimistic you are on the launch later this year. does it need the infrastructure? does it need the gpus or can it be on the edge and create an interesting proposition? >> how much nvidia is it buying and what also becomes the question the enormous pressure apple has put on itself now by pre-announcing, by the way, i've been covering apple since about 2010. i've never seen them pre-announce an announcement in this fashion and just the fact saying they don't even say we'll announce a new iphone one day. they don't even say that and here they are hinting at the ai. let's look at the announcement today. if you are an apple investor and you say what is apple going to do in ai and you read the press release they give one examel and it's some third-party photo pp, i think, i've never heard of that runs 40% faster. maybe apple thinks that's the ai key and that's the great answer to this ai question.

>> or an appetizer. >> or an appetizer. i don't think that's a third-party app that they could have put on the computer a year ago, and it puts enormous pressure what tim cook said at the meeting puts pressure on create some ground breaking new, generative ai product. we'll have to wait and see. i don't know what that looks like. >> at least he's saying ai. it was like he was allergic and was saying machine learning. there was a paragraph. >> kim fort at boca capital. you heard what deirdre was saying. you heard what steve was saying. as an apple shareholder, do you feel optimistic and say i will continue to be a shareholder over the medium and longer term? >> well, i think it's how do you define what apple is. we know that they're not a business software developer like

microsoft andthey do develop their own chips, but it's not necessarily in the hot area, ai, so what are they and why should they be in your portfolio? well, they are a supplier that gets a whole lot of eyeballs on things that run ai, and are they going to be displaced any time soon? and i think the answer is no. one of the reasons why i continue to own this is they're unbelievably strong moat. once you become a user, try not to become a user, right? so they absolutely need to step up their game in iphone and any of their devices because they're a device maker, not a softwaremaker and they need to be the platform of choice to get it into the hands of the consumer and maybe into enterprise and mostly into the consumer and that is why they continue to be in our portfolios. >> kim, why do you think or as

an apple shareholder, maybe i'll frame it differently. they are shutting down their car ambitions and they'll shift resources to artificial intelligence. we heard that. they've said it for the record. are you okay? less happy? sad about the fact that cars are no longer a part of the equation and that the resources will go towards ai or not? >> i'm thrilled. i don't know why they were in the car making area anyhow because a lot of it is on batteries, yes, i get that and electric motors, but mostly it's in, you know, all car stuff and i don't think apple had a whole lot of knowledge about that and maybe we would have had the prettiest looking car, whatever, most aesthetically car ever in the history of the world, but as an apple shareholder, i really didn't care. i'm glad they're back to understanding what they do and this feels very microsoft, i

don't know, maybe 2014 when they stopped chasing apple. when microsoft no longer wantewanted to develop a phone and they just understood where their role was in the world as an enterprise, and i'm happy they're leaving the world of evs behind and concentrating on what it does best. >> you know what it really does best is iphones. >> yeah. >> that's the spin everything. >> it is, right? how much does apple tell a story about how all of this works in the ecosystem of ios and iphone specifically as opposed to new mac hardware and generative ai visions and everything else. >> here's what a lot of the analysts are saying and this is mostly speculation, but i can also consider this informed speculation from their history doing it. they can hold a lot of these, whatever ai features they

announce. a lot will be global and that means if you have an iphone today, a new ios update will be out and you'll be able to use it and reserve the best stuff for the iphone and it can only run on this iphone and we created this new chip that can only run this stuff and that is how in the past they've used it to drive upgrades and go back in time to a few years ago when they introduced the 5g iphone and that was the upgrade cycle and go back to the iphone 6 lineup and that drove the biggest upgrade cycle, period. everyone wanted those big screens. those are more hardware-related things and going behind the scenes and a lot of the stuff they're talking about today with these new macbooks and you just need the internet connection and you don't need the latest and greatest hardware to run. so they'll have to prove that the iphone is worth an upgrade just on those ai features alone. >> you get the last word. >> i just want to introduce this

idea that the killer piece of hardware in the age of a imai not actually be a smartphone. that is something that is getting some discussion in the valley. could it be a pin like the humane ai pin? could it be a rabbit device? that is the existential question that is far off in the future because certainly, kim talked about the moat and it's entrenched and look at what happened with google and search, right? everyone thought search was so dominant and here to stay. now we're having this big discussion, and there is that question, what is going to be the hardware of the ai era. >> it is so complicated for sure. deirdre, steve, thank you very much for that. bee can tawe can talk about thi we need two hours. kim, stick with us, please. we'll get your take on the markets overall and everyone is waiting for the latest economic data for clues about the first interest rate cut. you are focusing on longer term trends in the market which are

telling you to invest specifically in technology and in computer chips in particular. >> right. well, i hate to be one of these people, but we're coming up on about a year ago before none of us knew the phrase generative ai, right? and it now has colored everything. we'll get to our last discussion, but i strongly believe as an ex software engineer who worked on neuronetworking and that's what generative ai is built on top of, and i think it is going to be the driver of productivity and as well. apple will step up and dostuff to make sure that they are meaningful in that ecosystem. >> more than that how do we play this? so far we play it by buying

nvidia and i don't think it is necessarily game over with chips. they have fine products that could not just displace leadership. we don't know what that's going to do, but i'm sure that they are going to play in this ecosystem of increasingly in the server farm area for generative ai applications and i have to throw this in just really quick. these models need so much horsepower, they can only be delivered on an end unit so far and you won't have things figuring things out not connected to the internet. you will need a whole bunch of data and a whole bun of exotic software for generative ai to continue learning. so don't expect that on your handheld device any time soon. >> and the servers to power them. that's probably the reason why super micro will be included in the s&p 500 later on this month given the massive run we've seen

there. before we let you go, kim. i don't want to keep it just about technology because there are other parts of the market that are important, as well. we want to see this broadening out. is there anywhere else besides computer chips and technology that we can find some value for investors these days? >> sure. >> i think the world is always changing in the world of consumer discretionary and that's because people are people. they get bored of shopping at the same place and they're looking for new, and i think that you always have to be aware that shoppers change, and to keep an eye out for who's hot and who's not. right now i think that two companies that again, we own are kind of interesting. one was formerly hot and that's vf corp. the company hit some potholes recently and management is taking a close eye to re-jiggering the format there, and i think that's something to look at, but i also like urban

outfitters expect the for urban outfitters, the store, all of their other brands are firing on all cylinders and that company has been able to survive a very, very long time and delight their customer. >> kim forrest of boca capital partners, thanks for the conversation we'll see you soon, kim. >> thank you. congress is back in the hot seat after narrowly averting a government shutdown thanks to a bill last week. emily wilkins is live with the story. hi, amly? hi, dom. nearly six months after their initial deadline, lawmakers have completed the legislation to fund part of the government for the remainder of the fiscal year. the $460 billion agreement was announced by democratic and republican leaders over the weekend and they finally have the actual detailed text which means it is likely that congress is going to be able to prevent a partial government shutdown that otherwise would have began at

the end of the day on friday. it includes several foreign policy measures like preventing the sale of any oil in the strategic petroleum reserve in china and it would strengthen the tracking and review of u.s. forest and farmland. the house is set to take the first vote on the spending package on wednesday and law maersks don't get back in town until thursday night and the speaker will use an expedited process that will require the help of doem democrats and it would keep the hard liners from holding up the process on getting these critical spending bills through. of course, congress isn't out of the woods yet and this is just the first package of bills and they're considered the easy ones and the next are expected to be much tougher to negotiate, a shutdown is still on the table. >> emily wilkins, thank you for that. we'll see you soon. we're looking ahead to the retail earnings with three buys and a beilin colluding three

hovering at all-time highs and there's still room to run thanks to the balance sheet and we'll have that coming up next, plus, commercial real estate could be in one of the hottest sectors and where one sees the biggest risks and opportunities. "the exchange" is back after this. >> this is "the exchange" on cnbc. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

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welcome back. big week for reretail earnings and here with our trade, gina sanchez, lido advisers chief market strategist and we'll start with your first buy which was ross stores. february was the eighth positive month in nine for the off-price retailer ubs season taking share from department store chains amid a tougher consumer picture. gina, why are you a buyer here? >> so, you know, one of the things that we're watching is, quite frankly, there are still some headwinds for sales generally across retail and there's also new headwinds for potential margins and the nice thing about ross is they're one of the higher margin plays. retail is not known to be a high-margin play and they have a 10% operating margin and that's huge. when you look at the troubles that they had in the pandemic

and securing inventory and just being able to sell things, they have been incredibly, you know, very, very cautious in their guidance and i think they're being overly cautious in their guidance. if you look forward, there's a lot of potential for ross to keep going and with the margins that they have and the outlook that they have, it's a good combo. >> all right. buy number two is target. negative in the past year, but coming off six straight positive weeks. barclays is seeing strong margin momentum and it's concerned about the cadence of discretionary spending and maybe no surprise there. gina, why upside from here? >> yeah. that's the challenge is -- is that sort of negative outlook or what i call headwinds to consumer spending. things like higher interest rates, big credit card debt, you know, student payments starting up again and student loan payments and all of those things will be negative. however, you are seeing some margin expansion that's set

to -- to be seen at target. this is one that lido advisers has owned for a while and we are betting that cost-conscious consumers will go to target and that they will be able to make their margin on those sales. >> all right. by the way, more to that story and you don't want to miss an exclusive interview with cnbc brian cornell tomorrow morning and that will be at 7:00 a.m. eastern time right here on squawk box at 7:00 a.m. eastern tomorrow, brian cornell and the final buy is coming off four straight positive months and baird analysts sees upside in accelerating comps and a potential membership fee this year and what makes costco a buy. >> this one has been a shining star and it is a consumer staple and throughout the pandemic this was a big win and you can see its outperformance has been massive and it's more expensive because of that and it's trading at nearly 45 times forward earnings, but if you look at the

expectations that the increase in the membership fees and all of that actually still rolls up to very, very strong demand for this sort of bulk buyer, low-cost supplier of food, groceries, et cetera and those are things that are not going away and this is a company that actually runs a great business and so we think it's worth -- it's worth the price right now. >> all right. so those three buys and now time for the bail, gina. nordstrom gaining 10% in the month of january and knowing sales momentum as the company bets big on its lower priced nord stop rack off-price stores. gina, why bail on nordstrom? >> so the challenge is all eyes right now are on nordstrom rack which is their off-price, and their competitor to ross stores, and other similar off price, but

if you look at the general trajectory of retail right now, luxury isn't back and that's still a big component of what nordstrom is about and so that's a challenge when you have the headwind to sort of the main core business and the notion of marking down all of that and killing your margin even more, that's interesting and i don't know that that's a big -- if you look at the shortage right now it's got 17% of free flow right now is currently, you know, in their short interest. i'm not the only one who sees this as a potential headwind for nordstrom. the expectations for growth are not that great and there are low single digits. >> there still could be volatility given the short interest for sure. gina sanchez at latin ido advis see you soon. >> we'll talk retail on "power lunch." shares of macy's are surging as brigade capital management

upping their buyout offer price and gavriel will talk about the new bid. don't miss it. on deck on "the exchange," here's a look at the mystery chart of the day, and shares are on their longest winning streak in three years 37 think you know what it is? we'll reveal it next. before we head to break, check out shares of tesla now down 7% and new data from china showing the january shipments from tesla's shanghai factory fell to its lowest level in more than a year and down 16% since january amid a new year sales low and increasing ev price competition. we're watching tesla. erhi endchange, shares a evytnglse we are watching. "the exchange" will be right back. and i had a fear that i wouldn't be able to keep up. i heard about prevagen from a friend.

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morning about what he's told boeing ceo amid that company's issues. >> the only thing that matters to us is safety and quality. that's it. i don't care about production rates. i don't care about shareholders in regard to boeing. what i care about is safety and quality and look, boeing, they've done a great job with us over the years and we need boeing as an industry, as an american and we need them as a country and i have great confidence they'll get there and by 2028 i have confidence they'll deliver the aircraft. ? now let's send it over to bertha coombs for a cnbc update. >> how are you, dom? three red sea under water cables that provide telecommunications globally have been cut according to officials in the region. they say at this point it is unclear what exactly causeded that. suspicion has fallen on the houthi rebels as the culprit.

the houthis have denied attacking the lines. meanwhile, a rebel missile attack set a ship on fire in the gulf of aden. no injuries were reported. the wildfires across the texas panhandle started a week ago now and have burned through almost 1.3 million acres killing at least two people and forcing a small town to evacuate. so far, the smokehouse creek fire, the largest in texas history, is only 15% contained as of sunday afternoon, and the south korean government began to suspend the medical licenses of striking doctors after they failed to end their walkouts. almost 9,000 doctors have been on strike for the past weeks to protest an initiative to allow medical schools to accept more students as the country faces a doctor shortage. a lot of unrest among clinicians on both sides of the world. >> labor issues across the

pacific there, as well. thank you very much, bertha coombs for the news update. coming up on the show, we highlighted the pain in the office space, but weakening demand is threatening another side of commercial real estate. we'll take a look at where the s d opportunities are coming up next. glp-1 drugs used in weight loss treatments

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welcome back to "the exchange." the pain in commercial real estate is in the sector and that does not mean others are immune. there could be a next shoe to drop. diana olick joins with us those details and a special guest. >> that is industrial real estate which includes warehouses and storage. it had been benefitting from e-commerce and it really took off in the first years of the pandemic and now we're seeing warning flags and who better to talk to about that than james breeze global head of industrial research at cbre. >> hi. >> industrial leasing jumped 42% from 2020 to 2021. it is now down 22%. why the huge drop-off and how much worse is it going to get? >> well, i would say for industrial real estate is healthy. 2023 was the third best year on record for leasing activity at 790 million square feet and like

you mentioned, it has declined with the second best year on record was 2022 and the best year on record was 2021 where there was over 1 billion square feet so we have seen some declines, and i think it's important to note that the average leasing pre-pandemic was 580 million square feet. to put it in context, industrial real estate was going about 70 miles per hour before the pandemic and it sped up to an unsustainable 120 miles per hour and now it's 90 miles per hour and it's settling and hitting the cruise control button. >> we are seeing vacancies rising now and is that a factor of more supply or demand falloff? >> it's a combination of both, but most of the supply that's hit the hawas supply. it hit 2.9% in early 2022. just like anything else when demand is trong and supply's at

record lows there will be supply added to the market and just like every number we track post-pandemic and the number hit a record in 2023 with over 612 million square feet completions and the previous year at 500 million square feet. so in a 24-month period close to 1.2 billion square feet of supply was added to the u.s. industrial market and that's now equal to the entire chicago industrial market which is the largest one in the world and right now we have vacancy rates at 4.8% and that's still a low income and that means it is 91% occupied and the ten-year number is 7.8% and we have this unprecedented amount of space back on the market. >> just to dig in construction more and especially the closer in areas and that was the best place to build because we all needed the same-day deliveries from amazon. construction starts are down 60%

from the peak and i know you said it was a massive boom and could that present an opportunity for investors? >> i think it could. construction, like you say, construction starts are down significantly. there were only 46 million square feet of starts in the quarter and we do have about 377 million square feet under construction in the u.s. right now, but over half of it will be built in the next six months. so we do feel that vacancy rates will peak at mid-year and start to go down again because development is going down quite a bit. we will have much less supply hitting the market and we feel vacancy rates are going to go down for pretty much every quarter for the next six quarters through 2025. so from that perspective, we really do not have fear of any over supply because this drop in development is occurring right now. >> that means the market can hit tight for a couple of years,

right? >> yeah. i don't even think frankly that long. again, we're at a 95% occupancy. we have maybe one to two more quarters of the vickancy rate increases and the market vacancy will go back down again, but you know, you're talking about that might be 5.5% and that's still a 94.5% occupancy rate in a market that's 19 billion square feet in size. so again, the market's healthy, and there have been some vacancy added to it mostly through construction and that construction is going down quickly. >> james breeze from cbre, thanks for joining us. dom, i'll throw it back to you. >> thank you both very much for that. coming up on the show, it's no secret that last year was a rough one for capital venture funding and one raised more than the year prior. we'll tell you who they are

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billion raised by venture funds globally last year and while that's still just a drop in the bucket, that's about 1% increase from 2022's total. sharon epperson is here with more on that story and what's happening. sharon, what can you tell us about this particular jump albeit still small. >> it's small, but encouraging, dom. it's a smaller fraction of the total pool, but venture companies for female-founded companies has been trending up in recent years and it has been upheld by the creation of female-led funds and more new companies. emergency physician elizabeth clayborn developed a device to stop nose bleeds. >> each nasal clip can be used for one nose bleed episode. nasaclip has raised more than $300 million in funding. >> when women invest in women they bring to the table more than just capital. they're introducing the social

network that is needed to be successful. >> when we first met dr. clayborn, nasaclip wasn't why the on the market and now the market is for sale and bringing in revenues. i don't think i would have gotten off the ground at all if i had not believed in really early on by my fellow female investors. one of her backers is portfolia, a women-led firm with over 140 companies? it's all behind putting our money behind companies that will enhance our lives and provide us those returns. >> the portfolia platform manages venture funds aim at women investors. >> we have $25 trillion of wealth in the u.s. and we're approaching 50% of all wealth being owned by women in the u.s. today, and that wealth is power if we use it. >> investors in portfolia funds must be accredited with $200,000 a year in income or $1 million

in net worth, minus a home. the minimum investment in a portfolia fund is $10,000 and each fund invests in ten to 12 company. >> so we let them dip their toe in and basically give it a triand see what venture investing is all about. and investors have a stake in start-ups to have the potential to generate significant value, not just in doctors, but also in woman's lives. >> it's a big story and we'll get back to it in just one minute and we have's news alert on boeing and spirit airlines with phil lebeau. phil? >> this is notice from the faa. they have concluded their safety audit investigation, if you will, into the alaska airlines door plug that was blown out in mid-flight. remember shortly after this incident the faa said we will do a complete audit of the manufacturing processes, the quality control oversight at both spirit as well as boeing, and the conclusion that they just released within the last

half hour is pretty much when we expected it to be. there was a lack of oversight in terms of things like the manufacturing processes, the identification and storage of parts. not a surprise given the fact that we knew that one of the conclusions from the initial investigation was ntsb was at t plug were not put back inside the bolts or not put back inside the door plug. nobody noticed it. there are no surprises in this report but it is the conclusion from the faa regarding the incident involving alaska airlines and this is the final word from the faa from their safety audit of boeing and spirit aerosystems. >> with that in mind, how much of an all clear will this be for this whole idea that boeing and spirit can not only move forward with production of those affected jets, but also with the possible merger that we have in the works as well? >> it has no impact in terms of

possible merger. that is a separate situation. in terms of production of 737 max, it is capped at 38 a month by the faa. boeing cannot move above that. is going to take some time for them to show the faa that they have made the corrections that the faa has outlined in their investigation and that the faa is satisfied that boeing's quality controls are up to snuff. that's going to take some time. that will not be an immediate couple of days from now you are good to go in terms of raising production. >> phil lebeau with the latest in spirit systems. let's get back to you in regard to your companies and funding. take us through what kind of companies are helping us in this effort and were exactly are female funders finding that money? >> female owned businesses are suffering from access to capital, many of them, and what is happening now is more major

financial services firms are helping to fund some of these companies, by finding women lead venture funds. we have seen bank of america jump and, and as of june of last year, they committed about $500 million to equity investments for women lead and minority led funds. there are different resources that entrepreneurs can go to themselves to see which funds may be interested in them, the venture capital journal has about 160 different women led funds. how much they have raised, what kind of stages they're looking for in terms of the company to invest in. that was the angel capital association for those folks who are accredited investors and want to be angels and really do it on their own, do their due diligence and figure out what companies might be right for them, that's another way people can invest. >> where are the hot industries that are attracting some of this money for women led founders and the like? >> women's health, all of that

is very interesting to a lot of female investors. we are seeing a lot of growth there, particularly in women's health. >> thank you very much for more on women funding and investing in women, join us tomorrow, march 5th at 1:00 p.m. eastern time for cnbc women wealth summit. that is sharon joined by a lot of experts to talk about political strategies. she is doing women and wealth tomorrow. you should register. >> is going to be a lot of fun. definitely register. a bit of a rough set up for the key spring housing season. the latest data from ice is joint inventory deficits worsening to 40% below pre- pandemic limits. they show other lost at 24% below pre-covid averages. home prices ticked up slightly from the previous month as rates dipped. joining us to discuss all of this is andy weldon the vp of

enterprise research over at ice, trucks a lot of this housing data. andy, thank you for being with us. to go through how promising may be or not so this spring season could be. >> the downside is, when you look at that inventory story, you mentioned the numbers after seeing seven consecutive months of growth. we took a step back in january. despite that step back, still more inventory out there in the market than there was at the same time last year. buyers have a little bit more tip to shop amongst, at the same time you see interest rates have a percent higher than they were at this time last year. affordability is lower, should lead to some lower levels of home price growth, at least when we look at it in comparison to last year's levels. >> is it really just only about rates at this point? i know supply is an issue and everything else, but it really does feel like if you had to single out one factor that is holding this all housing market back from it's this idea that nobody wants to transact, buying or selling, with rates at these levels.

>> it's true. we had the inventory issue before. the genesis of the inventory struggle was actually rates being too low and we overbought the housing market which puts us in a deficit territory. its interest rates that have driven that inventory. it is inventory that is driving the prices. it's all combined with one another, but absolutely, interest rates are a key factor. >> do think the activity you are seeing or not seeing in single-family housing coupled with what you are seeing or not seeing in multifamily housing, creates a very difficult dynamic for what the market looks like in the next six, 12, 18, five years down the line in america? >> absolutely it does. you are looking at the buy versus rent comparison. the market is overly attractive. buyers and renters are stuck between a rock and a hard place as we move forward. the positive news on multi family is, if you look at new construction, there's a little bit more opportunity.

there is a lot of units under construction. you may see some headway there. single-family not as much opportunity and some challenges. >> there is an interesting point to be brought up about just how far interest rates have to fall before you really start to see a critical mass buildup of interest. do have an idea of the kind of rate that we need to see for not just new home activity or existing home activity to pick up, but also what's going to happen overall with the dynamic ? the entirety of housing? is there a magic number? >> i don't think there's a magic number, per se. if you look at what has happened as interest rates have trended higher, easy volumes trend right along with it. we look at six and three- quarter interest rate this year compared to just application volumes, they have been very similar. you are going to incrementally pick up that volume on the demand side. when you look at supply, there is this magic number thrown out of 5%. you still have 80% of all mortgaged homes that have

interest rates below 5%. you will gradually pick up volume on the way down there in terms of sellers. we just have not seen a trend in the same way. we haven't seen that hold true. we will see it before we believe it on the sales side. >> we have a few seconds left. the metro area is going to be the most opportunity if rates fall? >> when you look at what is happening in january of this year, it's the northeast that has been the story line throughout the last 12 to 18 months. the surprising one to me when i look in january was really the west coast united states. san jose, san francisco, sacramento, riverside. those types of markets that have really gotten hit hard in 2022 inventory falling. is an interesting change from what we were seeing last year. >> andy weldon with the state of the housing market, thank you very much. that does it forhe t exchange. courtney reagan is getting ready for power lunch i will join her on the other side of this break. keep it right here.

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welcome to power lunch, alongside courtney reagan. i'm dominic chu, markets are lower across the board. you can see the dow industrial is one quarter of 1%, 95 points, the s&p very much flat on the session, 5135. the nasdaq composite of one quarter as well as 16,000 24