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 16,000 241.

apple is a big drag on the averages today especially with the nasdaq. the company hit with a nearly $2 billion fine by the european commission, the ec, said apple has abuse of rules for other streaming music providers but may be a bigger concern for investors is the company's perceived slower start to the ai race. we have much more on the story, courtney. >> we will start with macy's. that stock rallying 15% today as art-house and brigade capital raised their offer for the company to $24 a share from 21 bucks. macy's confirms it has received the offer and its board will review it as they did previously. joining us, gabrielle, managing partner and our own leslie picker is here with us as well. leslie, kick it off. >> thank you, gabrielle, for being here. the big news is that you bumped up to a 51% premium to the unaffected stock price from a few months ago, but shares still trading about 3 1/2 dollars below that price tag.

you said in an earlier release that the board was unwilling to engage due to a lack of confidence surrounding financing as well as the purchase price. i'm wondering if you believe that this newest offer, as well as any development on financing have closed the gap? >> yeah, firstly, thank you for having me. good to see you. the companies said they were unwilling to engage with us on financing. i don't know if that is the real reason or not. we can only guess as to the specific reasons they weren't engaging. in fact, in previous conversations with them, with respect to financing they made it very clear to us that they didn't have any additional questions on our financing. we hope the additional information we have given them, notwithstanding, their lack of specific requests, has put to the side any questions now, but

to the extent they have additional questions, we urge them to please let us know, specifically what they would like for us to address. with respect to price, as we stated then when we initially made the offer, we had a high degree of confidence and optimism that we could increase our offer if we were granted access to confirmatory diligence. the company was unwilling to provide us with access to said diligence but they did release q4 earnings and that gave us more information allowing us to drop some of the conservative assumption in our underwriting and in turn increase our price to now $24 in cash. >> macy's said in a statement that it does not intend to comment further on the art- house and brigade's revised unsolicited nonbinding proposal until the board has completed its review. going into the financing, you say that fortress and when i am have

joined as partners for 50% of the financing. you so you have that, but what about the rest in terms of presumably, debt financing you will need to get to this purchase price? how does the $24 a share change the dynamic as it pertains to this financing? >> the debt for this transaction is at a relatively low conservative level of 50%. for historic transactions, that is much less financing than typical. and we are pleased that we can give that certainty to shareholders. the debt is coming from money center banks, number of whom have expressed very strong interest in getting diligence alongside us and moving towards firm commitments and closing with us. with respect to how 24 changes that financing, as mentioned,

our ability to come up in our offer was really driven by us being able to shed some of our very conservative assumptions in our underwriting. >> gabrielle, you mentioned we know a little bit about macy's financial position given they did put out the earnings. i know a lot of the value you see in the retailer when we have spoken previously does have to do with the real estate. they do intend to close about 150 of their stores. that's about 30% of their fleet. how does that change, if at all, your thesis about the value of the real estate? >> awfully, not at all. hopefully, we get to close on this transaction and shareholders that premium long before the company under its existing leadership moves to close stores. our plan is not conditioned on store closures. it is not a part fundamentally of our business plan at all. we think the real estate is so

valuable in large part because it is occupied by macy's. >> another question too, do you really want to run macy's? if you were successful, would you continue to run it as a retailer , or would you try to sell off that real estate and get the value therein? >> very much. who want to continue running the company. again, the value of the real estate is really fundamentally driven by its a great tenant, which we think can be that much more that it were the under new leadership. the two are fundamentally meshed with each other. there is a very commence illicit relationship that sits in it and we think the real estate can become that much more valuable by putting on these necessary changes. in the private markets, as compared to trying to execute on really

fundamental business changes. the public markets work much more difficult. >> i wonder just if you could take us through what you think macy's/bloomingdale's/the entire portfolio looks like operationally after you have hypothetically done this deal 3 to 5 years from now. >> awfully, a whole lot stronger. since your hope is that this is not a going concern for shareholders but very much, macy's is a stable and growing company that can live for decades and potentially another 150 years. we think that needs to happen behind the curtain, away from the public markets. with think current management has really been largely solving for the quarter. when you are so focused on that near-term execution, it's really

almost impossible to ensure your long-term viability. >> thank you both very much for joining us. i'm sure we will be covering this more as things get underway further. thank you. stomach macy's getting an analyst downgrade from td cowans thinkable new changes will take time to drive upside to guidance picklist in the analyst joining us now is oliver jen, senior retail analyst with cd kellan. thank you so much for joining us but we just wrapped up this segment. i don't believe that you can comment on it but just in case you change your mind, do you have anything to say about this offer that has driven up at the start rise for macy's? >> we have always known that macy's has substantial real estate value, as much as $7 billion or more. that is $25 per share. however, it will take a wild amount of monetizing. the company is engaged in a multiyear plan to monetize 600 million+. it is something that

we are watching. we did choose to move to the sidelines on our rating. these are very good bold new choices in terms of store closures as well as changing apparel, and digital, but it will take time. as you know, department stores need to attract younger customers. a lot of opportunity ahead. we are excited to watch it, but the bottom line is we don't see earnings going up beyond their guidance level. we are at a good consumer environment and it has been tough for this company to grow since 2022. >> let's take the buyout and put it in a vacuum, macy's without the buyout. what exactly then it needs to happen for macy's and its properties to make you say, things are getting better. we can feel comfortable in the investment thesis around this. without the buyout even in play, what is macy's needing to do here? >> less is more, meaning less inventory but the right

inventory, fewer stores, but better stores, also services. you can't figure out where to check out or find the right level of service. ready to wear shoes need surveys. product, stores, those will be major focus areas for us to watch and the new ceo comes from a merchandise background as well. he is energized about driving different. we will look forward to that. radically, getting the younger customer and holding on to older customers and then bring excitement to the product that people want. a lot of competition, ultrafast fashion, off-price sector as well. osco and target have good apparel, too. macy's has found itself in a very crowded market. bottom line, you need a store experience that you want to go to and macy's has to stand for fashion and excitement. >> this is a two-part question. as a mention, part of the plan

going forward over the next three years is to close about 150 of stores that they classify as underperforming. the first part of the question is, what is the risk of potentially losing digital business in the z.i.p. codes where those stores are? we know often happens as consumers use both the online store and the in person store as sort of this cohesive, coexisting company. what is the risk of losing the digital business where you close the stores and that if you look at a macy's versus kohls, they have something like 1100 stores yet annual revenue is smaller. do you need more stores? do you need less stores? how is called a to operate with 1100 and macy's thinks it only needs 350. >> what will happen is, the organization needs to recapture these revenues when they choose to close stores. however, this was a problem in the past when they were engaged

in closing stores and lost more digital revenue than they assumed. so, what is different this time? they used more data, more traffic data, more consumer studies in terms of which stores they should close and each market area and each of these market areas as stores already. furthermore, you and i have seen the small format. this is an opportunity. part of that is why we moved to the sidelines. the risk factor around recapturing sales when you close stores. kohls being off mall is in a stronger position because traffic has been much more robust off mall for kohl's. goals has had good success with sapor and is on its way to improve product. both of them do have traffic issues and traffic is a big risk factor. it is something we will watch. >> thank you very much. we will see you soon. coming up, the nasdaq

slightly lower today but still up nearly 4% from the month. when tech giant is not following those gains and that is apple. down nearly 7% over the same period. we will dig into that story coming up next. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

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welcome back. shares of apple are under pressure after the you appearing union hit a fine of nearly $2 billion for antitrust violations after the music streaming apps. apple said it plans to appeal the decision. this comes is apple ceo tim cook is facing some heat from investors for lagging behind its peers when it comes to ai investing. here to way and is gene munster, managing partner at deepwater asset management. thank you for joining us. we always turn to you for all things apple. take us through what exactly this all means for apple and whether or not this is a bull case for evaluation? >> what it means for apple in your term is, investors are voting that they don't have

confidence in apples ai strategy. that is understandable, of course because it has been over the past couple months that we have heard more about that. ultimately, when you think about their ai strategy, it comes down to how are they going to make money on this? investors now are generally on the same page that this june at wwdc, we will see them, with the first foundation model. this would compete with chat gpt, gemini, ex.ai, this is the top four or five llama for meta- . really important that they have that so that is one piece. coming out with that model still doesn't answer the fundamental question that investors are asking. what does this mean for the business? i'm going to fill in some of those blanks. what it means for their business, of course, they will use ai to make better predictive text and add the fit and finish around their hardware and software, like some of the max they have announced. more importantly, they come out

with a subscription for personalized ai. i think this is one of the big unlocks for consumer value in ai. essentially, it is a unique place that apple has because of their role with privacy and security in the trust with consumers. people are willing to let pple use their data, often to allow these ai bots to do tasks for them to contact your utility company, book a trip, compose emails. there is a lot that can be done. when i think about that opportunity, it comes down to a subscription business. if you look at their active base and devices, something that are clear about, 2.2 billion growing about 8% a year. they don't give out the active user number. i estimate that about 1.4 billion. but of 20% of that 1.4 billion what opt in for a $10 a month personalized ai service, this is going to take a few years to get there,

that would at over 15% to apple's earnings. when you put all of this together, understandable, investors reaction. but i think investors are forgetting that there are one point, almost 5 billion people that live their lives throughout the day on apple devices, that stickiness is a huge long-term opportunity for them to sell ai products into. >> i do have a question about this you find. $2 billion as of now but that there is a high likelihood apple will appeal. worst-case scenario, it doesn't work, they have to pay the $2 billion fine. was it worth it? apple has a pretty big cash pile. with for the for the business, it did get? even if it believes a got a fair and square come up with the revenue it has acquired in the eu? >> i agree, it's probably going to be like 1 billion after everything said and done.

it will take one year. is 3% of their cash at that 2 billion level. the bigger question for me is, what impact are these types of fines going to have on apple's revenue globally? in the last earnings call, they talked about the app store in europe was 7% of total app store revenue. that equates to have a percent of apple's overall revenue. they knew this was coming. this fine was coming and they wanted to get in front of investors and remind them how small of a piece that this is. it does not change the bigger question. there will be changes coming to apple's app store across the board. this is probably 40% of apple's earnings come from services more broadly. and so, i think, when i think of that dynamic, they will pay the fine and it really sticks out. i have been closely watching what has happened. canada, u.s., south korea, japan , the eu in terms of all these changes. apple is really smart. they will go and make changes to accommodate the courts, but

then they find ways to essentially charge the developers anyway. i suspect that will frustrate and in for a great some developers. in the end of the day they are building huge this is off of apple's backbone and despite the frustrations, they will continue to pay and apple will maintain better economics so there app store over the next five years that investors are expecting. >> let about the evaluation right now of apple. it is not participating. is underperforming. what gets people back into the say that apple is the place we want to be? >> asked to come down to growth. have to show something. they have to show something injured that gets people excited that apple understands the importance of this and that they have to go beyond talking about a foundation model. have to show investors that we can get growth going. but have not grown over the past 6/4. that needs to change for the stock to start working and i believe it will. >> thank you very much for joining us and all things

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welcome back to power lunch. turning now to the bond market, which has its eyes focused on the strength of the economy and a rare treat, we get to talk about it with rick santelli but not from the cme group. he is right here, rick, so good to have you onset. >> i love visiting. it is a great experience and everybody is so kind. the bond market should have such good friends. if you look at what is going on with bonds, the story for 2024 is, rates are high and they are going to stay high. let's look at atlanta gdp, maybe it doesn't always give you the exact right clues, but just in six days it has gone from 212 to 3 1/4. that is a huge move since last tuesday. if you look at the five year break evens, they are hovering just under 2.4%. the highest levels going back to november. the last thing is a year to date of twos and tens. we are hovering around 422, 461

in a two. this is within 10 basis points of the highs of the year. >> in relative terms, there is no doubt about those break evens, everyone else is present in this stickier inflation story that we have gotten more data on in the last few months. it's still not like we are returning yet to the levels that we saw over the past 2 to 3 years with regard to real inflationary pressure. there was only a short chapter. we got up to 499, never closed about 5%. i understand. were about three quarts of a percent, maybe away from that point but when you think about all the moving parts, we are underestimating the fact that just because it shot up to 499, the variables then were scrambled. it happened fast and it disappeared. i think over time, we are going to do that move again but we are not going to do as a

scramble. we are going to do it as a slow steady climb. i think the moving parts here are, we could talk about inflation moderating, but inflated prices aren't. the public gets that better than anybody and the public understands that. >> if that is the case, was it better -- prices are high. prices are slowly moving higher. that's the whole idea. would it be better or worse if we had outright deflation? in terms of the economic picture? that would get our prices back to where they were two years ago or three years ago, but is that what we want? >> i think it's what everybody i talked to wants. they want the 21% prices down that they were pre-call would. if you are a fad or you on buildings or real estate, let's be honest, countries that have terrible debt problems always like inflation. the old saying was, either grow your way out of it or inflate your way out of it because deflationary pressures in and over debt burden society never turn out well either. >> rick, come back.

don't be a stranger. we have a seat right here for you. let's get over to bertha for the nbc news update. former president donald trump held a press conference this afternoon to applaud the supreme court ruling that he cannot be removed from state ballots. >> i think it will go a long way toward bringing our country together, which our country needs. >> the outcome and's efforts in colorado, illinois, maine and elsewhere to get jump off the ballot by claiming that he violated the 14th amendment, leading up to the january 6th attack on the capital. the court ruled, only congress, not states can invoke that provision. in a world first, france enshrined the right to abortion in its constitution today. an overwhelming majority of lawmakers approved the measure in a special joint about of that two houses of parliament at the palace of versailles. philadelphia stars centered

jason kelce announcing his retirement from the nfl today after spending 13 seasons with the eagles. the seven-time all- pro and super bowl champ shared the decision in an emotional press conference this afternoon following months of speculation about his next move. i guess , kelsey won't have to choose between the eagles and the chiefs. >> i guess not. she can load up on the red. thank you very much. as we had to break, a quick power check. hp having its best day in about a year. on the negative, tesla down 6%. a huge plunge in china shipments , that is your power check for tesla and hewlett-packard enterprises. we will be right back. (grunting) at morgan stanley,

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s&p closed at record highs on friday but just marginally so. our next guest sees bullish signs for the market, including projected double digit earnings growth this year and a broadening of the market beyond just big technology. stephanie link is the chief investment strategist and portfolio manager at hightower. she is also cnbc contributing. thank you so much for being here. let's talk about whether or not this story needs to see broadening out or whether they can be like last year when the mag 7 did all the heavy lifting . >> i hope it's not like that last year. i'm encouraged by what we have seen. we had a 16 of the last 18 weeks up. we have not seen that since 1971. i bet you weren't even born. so, we are seeing a difference in this year versus last year. this year we are starting to see other parts of the market doing better and actually started in october and then it continued in the beginning of the year and then it reversed and we saw mag 7 again. it's kind of healthy to see this gradually happening.

it's not -- look at the semiconductors everyday going up, but it's also other areas like iw m up 3% last week what is the effect? crypto also very interesting to me. banks, and the general financials, energy, industrials, and so i think a lot of that though is because we have seen better economic data and the economically sensitive sectors should do well based on the better data. are growing at about 3% in gdp. consumption is 3%. you are starting to see pockets of manufacturing to well from all of the infrastructure spending. that add it all up and it is good for earnings overall, not just for tech but for all of these other sectors. >> let's talk about what companies do benefit in that environment. you mentioned a lot of potential catalysts. a lot of macro tailwinds. where are the pics to be had out there given that kind of narrative? the kind of story? >> within industrials, i am

overweight industrials and i own a ton of them. one that doesn't get talked a lot about but is really well run company is eaton corp. they are going to benefit from all this infrastructure spending. that is actually flung into this sector this year. they are electrical and energy efficient. they make better quality and better reliably. their orders one from 2% in the third quarter of last year to 7% in the fourth quarter. that is sequentially for company of this size, that is huge. so, not cheap, but i do like 15 and i like this company. i bought a small piece of this and i think we will watch and see if it is weak to continue to add to it. >> courtney, you know what else they make? golf grips. a lot of people don't know that. >> that is interesting.

stephanie, in your opening comments, you talked about cryptocurrency and let's repeat my interest. i love your analysis. i could be wrong but i don't feel like you are often talking about cryptocurrency. we know the price of bit going going up around 67,000. if you are talking about crypto and if you're interested therein, are you talking about more of the new etf's? how would you play that? i want to hear more. >> no, i'm not investing in crypto but it is more looking, taking a step back and looking to see what is working. in his risk on that is working and that tends to be crypto in general. i do think the reason why crypto has done so well is because of the etf's and all of them out there now, it is so much easier to participate. it is also a little less volatile than just buying but coin or when base or any of the companies out there. is very diversified way of doing it. that's what i think it's fueling that move. along with small caps and along

with other sectors, beyond tech, i think that is worth paying attention to. the factors of risk on, more value, a little bit more broadening out is in fact occurring. >> the most bullish analysts and strategists hat cover wall street that layout targets for the s&p 500 are basically putting the s&p 500 about maybe three or 400 point at the year- end above where it is right now. it's not a lot. it implies a positive but relatively muted year. is that what you would expect? is that a victory at this stage of the market? >> yeah, i think if the overall market kind of just goes sideways to gradually up, let's remember, the long-term average of the s&p 500, the total return, a long-term average of 7.7%. we are there right now in the s&p 500. if we go up another three or 4%, that would not surprise me. i think we should given the

broadening out, but i do think these other sectors will be up more than the broader average. it is industrials, but i really like housing a lot. we have talked about this for a couple of years now, but i think this is there year for housing. you won't have exposure there and financials, if you can get financials to participate, it's a big part of the market and encouraging, too. >> you did mention housing and financials. i know you have given us two. which one and tell us what you like it. >> masco. housing, you know this from covering home depot and lowe's, we are 14 million, 5 million homes short. we have under produced for 14 years. we have 5 million millennial's, first time buyers, their assortment is below end. their business, one of their partners is home depot, 30% of their mix. and so that is very encouraging because i like home depot, by

the way. i think this company can do good on margins, five dollars of earnings power puts the set 15 times earnings. it's not expensive. >> we are talking delta faucets and bear premium paints. stephanie, thank you very much. coming up, oil prices sliding as opec extends voluntary output cuts until midyear. stevens will give us more details on power lunch after this.

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pga of america chose t-mobile for business. with a 5g powered innovation hub to analyze player performance and expand coaching tools. take your business further with america's largest 5g network. welcome back, oil prices falling despite opec agreed to extend production cuts. let's bring in for stevens with more. >> this was announced yesterday and the cuts we are talking about, these are the 2.2 million barrel production cuts that went into effect at the beginning of this year. they were set to expire at the end of march. now these members including saudi arabia came out and said

they are extending through the end of june. saudi arabia has taken the lion share at about 1 million barrels per day. they are currently pumping about 9 million barrels per day and they could be pumping 12. they have taken about 3 million barrels per day off the maet. the other members here, iraq, uae, kuwait and russia have said they will reduce their output. the cut was largely priced into the market, which is why we are not seeing a response in the price of oil. this shows energy is unity within the group. that is important because we sought in gola leave the alliance. they made the announcement and it kind of felt like maybe there was some members that were upset with their production quotas and so this shows there is some cohesion in the group. these are voluntary cuts so there is no enforcing mechanism, but all these countries have done something for the group. it also shows this defensive on the $80 per barrel level. one other thing, gas is in the green today after each cutie that it is heading out but.

they said they started the cut at the end of february and will continue through march. and then reassess based on market condition. gas has been on a huge massive decline. downturn thanks to the warm temperatures we have seen with storage at about 27% above the five-year average. >> if we talk about the gas trade, the dynamic with regard to the administration's restrictions on everything else, liquefied natural gas, how much of that could be resolving itself one way or another in the coming weeks and months given what we are seeing in prices as low as they are right now. they have not been this low in a long time. >> that moved by the administration to pause pending approvals has no impact on our actual production at this moment because it didn't have anything to do with facilities that are already permitted and are beginning construction, however, it does signal longer- term risk. if you can't have guaranteed that these projects will actually be able to be built and get through the required permits, you are not going to

say, we are going to invest billions of dollars up front i think one other important thing on the front is this coming wave it has been a big thing that has been supporting the bullish narrative for natural gas pick these new facilities keep getting pushed out further and for the time being with the producers have been reluctant to cut because they want to be able to take advantage of this demand boom that so far has yet to be realized. >> pippa stevens with the latest. thank you from for that. new competition is merging with the weight loss space. experiment treatment is now being held as best in class on wall street. our next guest will give us the skinny on that stock with power lunch when it returns after this. ♪ i am, i cried ♪ [ laughing ] ♪ i am, said i ♪ ♪ and i am lost and i can't ♪ punch buggy red. ♪ even say why ♪

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welcome back. it's time for today's three stock lunch and here is jerry castellini, the cofounder and co-cia at management. our first name is a stock that has taken the market by storm. we are talking shares of supermicro computer. they are up nearly 100% over the past month and shares are heading at all-time high. today, the news of the company

is joining the s&p 500, but jerry, your company just entered a selling program on that stock. why is that? it is of about 1000% over the last 12 months. >> yeah, most professional investors will take profits, will pair positions back as the sizing of the increase. it's a risk management tool and we do it and we think it is really important. this is become our largest holding in our small-cap portfolio. quite frankly, if you look at it and compare it to maybe a dell or nvidia at the other end, they do more low-margin type of things with respect to putting, assembling the data center equipment. they don't have the intellectual property of nvidia. in our case, we are taking profits, selling today, not selling whole position, but moving it back to the size it was, say a few months ago

before it had this run. >> our next stop is another name that will be joining the s&p 500, deckers outdoor. this is behind uggs. what is your trade and you have any? they are so cozy. >> i know. would've thought that a hug >> or that they would be in the sandal business. it is a very smart brand extension strategy on these guys part. it seems like consumers are taking it up very well. you combine that with these crazy new shoes that you probably have a pair of that are running around, it's a neat combination for a shoemaker. really when you compare it to a nike, which is being threatened by different international and trade issues, here's this direct play on the direct consumer right now, in the exact areas that we seem to see a lot of

popularity. a lot of folks want to do these things more of. more comfortable shoes outside, and more athleisure if you will. the combination is a pretty powerful one. while it is expensive, we would buy any pullback on and here. we would hold it here. >> >> all right, deckers, a big name in brands of footwear out there. final stop, viking therapeutics. cnbc published the article on sunday, saying that the company is emerging as a strong weight loss drug player. the shares are jumping higher in response to that. the stock is up by almost 300% over the course of the past month. jerry, does viking therapeutics have more run in this total addressable market story for weight loss drugs? >> yes. if i could just pause for a second, guys, when you think about it, we are talking today about consumer products company, a drug company, and when you think about a tech

company -- you think about all three of these companies being dominant, big movers in the market. what is the last time we could sit on a session like this and talk about three completely different industries that were not overwhelmed by technology? it is a statement of where investors are today, and why you should think very closely about the types of names you use. this is an example. viking is now chasing -- something that you would've expected it to do six months ago. here they are with a viable third product into the big glp one market. why not? this company will not go down significantly, because pfizer will need to buy that at some point. i'm sorry? >> i just think that's interesting. >> yes, i mean, these gop ones, think back to the stock market back in the 18 -- and early 90s. multiple competitors, multiple different compounds, pretty

much all successful. one lumbered comes out with the -- and pfizer has to buy them. now you have that potential for this being the case in -- and we don't have to know how big this market could be. you should probably just buy this and feel comfortable that it will not have the downside risk of a lot of these different companies. >> it is already up 400% year to date. that is also of note. jerry, thank you so much for being here with us. we appreciate it. >> you got it. >> still ahead on the show, the white house just wrapped up a round table discussion on drug price reforms. speaking of, our morgan brennan will give us key highlights, including reaction from mark cuban. we are back in two. ♪ ♪ ♪

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health care costs, specifically pharma middlemen, managers, and their impact on drug prices. mark cuban along with the attendees, our morgan brennan spoke with him a moment ago. she joins us now. >> he has a very interesting company, and is very plainspoken in terms of his message. i spoke with billionaire investor mark cubans start-up -- almost 2500 generic medications in the online pharmacy for companies, ensuring patients directly participating in this white house round table. his message was the big three pharmacy managers are driving drug drug prices higher, but there's nothing unique about that. >> let me tell you to speak directly to the ceos. those rebates that you are getting from the pbms, they are not paid for by the manufacturers like they are telling you. the rebates you are getting are paid for by your sickest employees and oldest employees. those rebates could be used to pay for those employees medications and care, or pay for the chronic illnesses that they have to pay, for the medications every single month.

instead, you're putting those on your balance sheet. that could backfire for you. go to a smaller pbm it does not do rebates. go to cost plus drugs dot com, compare it. go to your insurance company and tell them you want to -- instead of humira. if you're a company with 1000 employees, switching one drug from that could save you hundreds of thousands if not millions of dollars. >> for the white house, this meeting comes as a plan to announce a federal task force focused on using health care costs, and what is expected to come up thursday night in the president state of the union address. for more on the interview with cuban, une into closing bell: overtime where we deal with drug prices -- and other topics like a.i., crypto, and more. guys, they are opening up their own manufacturing line this week to speak to some of these generic drug shortages we've been talking about. >> daily use plus drugs. they really focused on the generic drugs so if you could

go into the website and search, -- >> but it covers the vast majority of the drugs consumed in america right now. that's the point. >> that is the point. it's a different model than you see currently playing out more broadly. it is this idea of offering the drugs at manufacturing cost, plus the 15% markup, plus the v associated with either filling that drug prescription in a pharmacy or in the shipment to you. there is a big difference in the business model, but when that certainly leads to the disruption that we are starting to see play out in health care with the likes of others like amazon, et cetera. everybody is trying to crack the code on that, that pbms have been linked to for so long. >> i like the transparency of drug prices, it's kind of started to educate the market. that is a value to. thank you so much, we will look for more of it on that show later today. looking more at what is going on with the markets, just about an hour left to trade.

they were lower across the board when we started to show, maybe starting to turn around here. just around 22 points, 23 points here. we will see where we get to go for the rest of the hour. ♪ ♪ ♪ >> another hour coming up. thank you guys very much for watching power lunch as always. >> closing bell starts right now. ♪ ♪ ♪ all, right guys, thank you so much. welcome to closing bell, i'm scott walker. the make or break hour begins with the breakaway bull market, leading there is in the rearview and threatening to broaden even further. we asked our esper's over the final stretch whether there is more optimism in the weeks ahead. in the meantime, take a look at your scorecard. with 60 minutes to go in regulation, the brightest by today belongs to the small caps, the russell is outperforming the major averages. the dow is basically flat. there is the russell up 31%, tough going for a few big names . apple trading in the one 70s.