♪ welcome to "power lunch." alongside courtney reagan, i'm dominic chu. we are watching the markets right now at session lows. we're getting back some of that record rally this time around. shares of apple, by the way, falling once against this time on concerns of its sales of iphones in china. check out these numbers, apple down roughly 11% this year compared to a 6% gain, courtney, for the nasdaq 100 large gap overall. disney shares back in the

red after bopping when bob iger said he is confident disney streaming offerings refer profitable by the end of the year. target shares jumping but still some areas of concern. we're going to discuss that coming up. but let's start with today's declines in the broader markets. mike santoli joining us from the new york stock exchange. mike, a day like this kind of expected after the rally that we've seen? >> for sure, court. in fact, maybe multiple days like this just because the s&p 500 managed about a 25% gain off the october low. we have only had two down weeks in 4.5 months. all those things suggest there's room for relatively routine backing up of the indexes. what is going on below the surface is a fit full rotation happening. the big winners in the nasdaq 100 in tech have been giving back some of those outsized gains you've been mentioning. you still have a 50/50 up-down split on the new york stock exchange. it's not like everything is for

sale. the s&p 500 is back to levels we first got to only about ten days ago on the upside. again, it is pretty much a skimming of the froth. but we would be mindful of just exactly how stupendously overbought things like semiconductors got and other parts of the high momentum areas of this market so you can't just say it's a one day and done. >> mike, it's pretty interesting too as well. we're not going to call it a rotation because maybe it's too early to call it that. but not every part of the market is down today. we're seeing some outperformance in financials, some of those value-oriented names. albeit some have been beating up to heck in themarket these days. >> sure. >> but still the banks jp morgan hits a record high. there is a little move out of certain big tech stocks into other big names like jp morgan. >> which is why i don't think the little bit of unsettled markets today is really sending that much of a worrisome macro message. it's not as if people are necessarily panicking about a slightly softer ism services number, credit markets remain

pretty sturdy. cyclicals, industrials and consumer are doing okay if you look at the new high list, too. so everybody should be prepared for a little payback after the run we had. we'll see how deep it goes. >> mike santoli, thank you very much. our next market guest is expecting an suspension in the rally in the year ahead but says that is contingent on the fed cutting interest rates. let's bring in kevin monn the president and chief investment officer at henion and walsh asset management. okay, so the fed needs to cut. >> yeah. >> you're not the only one who believes that. but take us through why it has to do it soon or not. >> sure. and let's just remember back to last year when the mag seven accounted for 62% of the total return of the s&p 500. thus far this year, 44% of the return of the s&p 500. take out tesla, and it's nearly half of the return of the stock market. so, they're still dominanting but the bredst is starting to expand. for it to expand further, we do

need the fed to start cutting interest rates. for the fed to cut interest rates we need two consecutive quarters of a slowing economy provided that inflation continues to moderate all the way out to july at the earliest. so for those market participants that are hoping for a fed rate cut sooner than that, think again. >> but then if they don't cut. >> yeah. >> is it safer to sit and wait rather than make any changes, i guess, one way or the other? what's the bigger risk, cutting too early or waiting and seeing? >> it's a great question. we look back to the 1970s as the blueprint for what could go wrong. the fed cut interest rates back then prior to inflation coming to 2%. what did that bring on? double digit levels of inflation. paul stepped in rose to high of 20%. that brought on a recession. so they're really trying to thread the needle. bigger risk is to push the economy into a recession. >> if you're an informser, to your point, the mag seven pulled back for a little bit without

they're contributing, without tesla, 50%. so you can't afford to not have a significant position in them, can you? >> and i think they will move higher. they'll drive the u.s. economy ahead. certainly names like microsoft ultimate winner of the ai race, names like amazon who continue to dominate the e-commerce space and nvidia, how can you bet against nvidia at this point in time, especially with the expectation that they're going to deliver their next generation chip later this year. but there are opportunities beyond just ai. consider cybersecurity, how about aerospace and defense or even some consumer staples and discretionary names. there are other opportunities out there. but for them to really take off, we need the fed to cut. >> all right. so, let's talk about why they have to cut in the eyes of the market. >> yeah. >> they don't have to right now despite today's market action. they haven't really done anything expectations have pretty much gone away for as many cuts as we saw three months ago, six months ago. yet the market still hovers near record highs.

people still get paid 4 to 5% on cash balances, yet they still buy stocks as well. >> correct. >> it seems like everything is going up in value at the same time that the opportunity cost of giving up cash is still relatively high. what gives? >> i believe that the federal reserve wants to start cutting interest rates sooner than later. why would they be forecasting three interest rate cuts of 25 bases points this year if by their own forecast inflation will only come down to 2.4% by the end of this year. i think they're more concerned with inflation staying below 2%. remember where we were just three years ago, than they are with inflation actually staying too high. they have difficulties replaying the u.s. economy. pushing us into a recessionary period. if the fed does what they suggest they're going to do and cut interest rates by 250 bases points over the next three years, both stocks and bonds should move higher. but we are going to be more

selective over the next six months when the economy will slow and when, in fact, there's going to be a volatility. the pullback we are seeing today, i expect more short-terms of volatility ahead. >> interesting stuff. kevin, stay right here for a second because we want further thoughts from you. target shares are surging after better than expected holiday release with improving margins and traffic, low r marked downs and lower freight cost that helped lift profitability. they are laying out decade long plan in new york city today. i was there. just wrapped up. ceo told me that he expects targeter will grow annual revenue average of 4% next ten years by opening po 0 plus stores, investing in current 2,000 stores, expanding same day services and taking advantage of share opportunities. for instance, like macy's closing stores, potentially picking up some sales in those areas. stores will open and areas of population growth, like salt lake city, phoenix, dallas,

nashville and those surrounding areas. there's a huge opportunity in same day delivery that frankly it just needs to fight a little more for. that's part of why it's updating this target circle loyalty program. there's going to be three tiers. target circle remains free but now the deals are automatically applied at checkout. target circle card will replace the red card. still give you 5% off everyday purchases and two-day shipping but now add extra time for returns. target circle 360, that's the new paid membership that will start at 49 bucks for april 7th through may 18th then increases to $99 unless you have that circle card, that tier before this which gives consumers unlimited same day delivery on orders of $35 or more, two-day shipping, access to shipt marketplace which delivers from 100 other retailers in addition to target. it has two new private label brands called deal worthy and toys called giggle scape and relaunching up & up brand. investors care about that

because target private label brings in third a billion dollars of annual revenue and contribute more than a third to its margins. target laid out long-term plan to hit the pre-pandemic level of at least 6% going forward. so, learning what we learned about target, seeing target shares surge, i know retailer is not often an area that a lot of people come on cnbc to talk about when we're talking about the growth that we've seen comparatively in the magnificent seven. but when you hear things like laying out a ten-year plan with these, you know, pretty decent growth targets, does it make you any more interested in a name like target? >> retail is incredibly important because it's an indicator of the health, the wellness and the confidence of the u.s. consumer. as we know, the consumer accounts for 70% of gdp growth in our country. so i was very encouraged to see the results from target, beating on earnings, beating on revenues. dus appointed to actually see year over year same store sales go down. >> sure. >> looking at their forecast for

disappointing sales this year. but then what i took away most was them suggesting what i said earlier in this segment. that's that the u.s. economy is slowing. the u.s. consumer is now starting to focus less on discretionary items and more on staples. and they're being a lot more frugal there. so, if, in fact, everything tha lower tier brands, starting to focus more on $10 and below items, that could actually help them to weather the economic slow down very well. i also like target because they pay an attractive dividend and trading at pretty attractive valuation compared to walmart. >> do you focus on big box, costco, walmart, target, that sort of thing? is there any room for consumer discretionary at all, retailers that cater to maybe higher-end shoppers, department store chains that sort of thing, niche retailers? are those pretty much tabled for now given that thesis? >> i believe need to focus on -- have a brick and mortar presence and also expanding their online

footprint. target has done it. walmart has done it. amazon has led the way for years in that area. the american consumer has made their choice. they prefer to shop online still. and they're going to continue to look for more discounted items. what better way to do that than through online commerce. so i think those retailers that have that online presence can also cater towards lower cost items and not so focussed on big ticket discretionary items will do well in 2024. >> very interesting stuff. kevin mahn thank you for joining us. a check on china. first apple in the danger zone thanks to huawei. details in "tech check" coming up. target is detailing its 2024 targets. we'll lay them out when we return after this break. 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.

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largest markets, china. new report showing iphone shares plunging 24%. tell us about the details of this report. huawei is obviously a very big competitor. >> that's small but growing. let's put that it way. look, the headline here is counterpart research, looking at the first six weeks of smart phone sales in china, compared to a year ago. iphone down 24%. that is the headline number and the other headline number, like you said, huawei is up the other way, 24%. honor was up 2%. what does that tell you, it tells you we see huawei making phones again, marketing them kind of as 5g but also doesn't matter. it is bit by bit chipping away at the market share that apple gained when huawei stopped making smart phones for a couple years there. so that is one thing. the other thing that's happening in china is we just know the

economic situation there, we'll get into that here in a bit, but the point being, consumer demand is low because of just the weak consumer overall. then we also know what's going on china wholistically, not just the iphone and the december quarter, the holiday quarter for apple, sales overall in china down 13 m%. it's not going to get any better. >> yes, all of those points are valid. but the chinese government has its fingers on the scale here, right? >> right. >> because they told basically their citizenry and certainly their government employees that they didn't want people using iphones. right? w. yes. >> that kind of -- >> nationalism going on here. >> correct. >> they were trying to focus on their own brands. saying we don't want you to use apple. there might be security risks, blah blah blah. that's probably the reason why. right? >> it's a reason why. we don't know the extent to that. you're referring to some reports late last year that no government agencies were basically told, don't bring iphones into the office, don't buy your employees iphones for a

lot of same reasons we on the u.s. don't put tiktok on your work phone or huawei. that's part of the reason why huawei got out. we don't know how big that was. china down played ate little bit. apple has been down playing it a little bit. it's unclear how much it's that versus the consumer. but yes, to your point, little bit of nationalism playing in. huawei, chinese company -- by the way, those huawei phones look and act just like an iphone. >> what is apple's defensive strategy to gain some of that share back and more broadly investors and analysts think they can do it? >> this is not a new formula for apple. they have grown in china despite huawei being in the game for so long. again, they had this grace period where huawei wasn't in existence basically. what can they do? everyone is looking towards there ai announcement. i know that's part of it. the other question becomes in the fall with the iphone 16 upgrade, you know, how many

people are going to want that -- is that phone going to be good enough to attract people to either stick with apple or avoid switching back to huawei. >> how much of a concern right now, we have seen reports that the online sites have cut the price of current model iphones by up to $180 per unit. that's a concern as well. >> it can be, but that happens a lot. we don't see it so much in the united states with price fluctuations with the iphone, but we do see it internationally. you'll see apple kind of tweak prices in dimpbltd geographies based on foreign exchange rates. and other thing. one read could be, yes, it's part demand, another read could be it's foreign exchange, maybe a mix of both. there's no one answer. >> steve kovach, thank you very much with the tech check. speaking of that china economy side of thing that steve mentioned, economic targets for 2024. eunice yoon is live in beijing with the specifics on that macro economic environment in the world's second biggest economy.

eunice? >> reporter: thanks, dom. well, the targets are more or less the same as they were last year. but because they're coming off of a higher base, they're viewed as more mbitious. so to support growth, the government said that it was going to focus and target a fiscal deficit at 3% of gdp. it will also issue new long-term bonds over the next few years. some special sovereign bonds as well as some local bonds. and the money is expected to be earmarked for major national strategies as well as strengthening security in what they describe as key areas. now, the premier, who announced the targets at the start of the national people's congress, admitted that it will likely be very difficult for china to reach those goals. at the same time, he said that the country would stick with its policy approach of being proactive and prudent. now, what might change, though,

was also hinted in the government work report. and more specifically as you guys were talking about technology, that tech reliance and self tech reliance -- or tech self reliance was going to be a priority as well as promotingmade in china brands. guys? >> eunice, there's also a question about whether or not there's going to be any kind of impact from the kind of on going economic dialogue, possibly about trade policy and everything else that happens between the united states and china. is there a sense right now that these targets are achievable in the greater context of its trade relationship and not just the u.s. but the rest of the world as well? >> reporter: well, because of the potential geopolitics getting worse, that is definitely seen as a hurdle to ch china's overall growth picture, but on the whole, i think investors should expect that the chinese economy is going to

continue to slow down. we've seen that the authorities here are not really willing to stomach any large stimulus, but one potential way that has been discussed about investingis really to follow the government policy, which is something that people talked about for quite some time, but more specifically that the government is now prioritizing national security over the economy. and if as a foreign company you're willing to help china reach its technology goals, then you might be able to benefit. >> fascinating stuff, eunice. thank you for being there for us on the ground as always. well, nuclear renaissance with uranium prices at a 1-year high, companies are seeing renewed interest in the space. that story coming up next. trading at schwab is now powered by ameritrade,

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(other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our clients' portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different. r. welcome back to "power lunch." stocks are heading lower today and money is heading into bonds sending those yields lower. the bond market is waiting to hear what fed chair jay powell will say tomorrow.

rick santelli is back home safely in chicago. sadly for us. with more on today's action. we do miss you, rick. >> i'll tell you what, dom, it was definitely quite enjoyable to sit at the big desk with you and courtney. and you've nailed it. in front of the humphry hawkins as we used to call it, house financial services committee tomorrow, senate banking committee the following day, the markets are giving him a weak i equity market and frothy treasury market. 10:00 eastern, what was going on, 2, 10 and 30s minus 6.2% on the updated durable goods, biggest month over month drop in nearly four years. transportation, down .4 biggest monthly drop in nine months. then ism services, your employment index. by the way we have two employment numbers this week drops back below 50. all of this, of course, you can see on the charts at 10:00 eastern, any maturity they all

move lower. but here is something fascinating. last year the first leg of humphry hawkins, house financial services side was on march 8th. but let's go back three or four weeks and look at the chart. this is a two-year. you see that huge drop. that was 3/8, the day of humphry hawkins last year. it had a huge effect on 2 year note yields. let's keep that same date and go down the yield curve. here is a 10-year, much smaller move. 10-year yields at that point in time were basically trading about 15 bases points lower than they are today. the reason i point this out, if you're looking for volatility, definitely want to pay attention to 2s, 10s curve especially the short maturity. there's a lot at stake especially considering all the inflation numbers that aren't far beyond his testimony in front of the both sides of the aisle. courtney, back to you. >> thank you very much, rick.

appreciate that. well, uranium prices hovering near the highest level in more than a decade, which is jump starting u.s. mining operations. pippa stevens joins us here with more. pippa, i learn things from you. >> this comes down from the nuclear renaissance we are seeing pushed up spot prices of yur yum, causing miners to restart plants that had been idled. prices collapsed in 2011 after the fukushima disaster meaning only the lowest krost uranium in australia and canada could still be profitably mined. now they are betting that prices will stay elevated. they are restarting in wyoming, texas and utah. total volumes will still be well below the hay day when the u.s. produced more than 44 million

pounds. meaning the u.s. will still be dependent on foreign suppliers. now, canada and kazakhstan each supply one quarter of u.s. uranium followed by russia nuclear power is 20% of the u.s. grid. even though russian uranium hasn't been sanctioned due to their outsized role in the industry, utilities are scrambling to secure other and more reliable sources. the ura and urnn both pulled back recently, but those two funds tracked the space and gained a lot of attention recently. >> i understand prices at 16 years highs, that looks attractive potentially to get back into the market. but what does it take to restart idled production. how expensiexpensive, how long start? >> it's expensive. it is expensive. and the u.s. is not the cheapest place to produce it. much cheaper in australia and canada, which is why those factories did close after we

were a major producer just a few decades ago. so these producers are now making this bet these prices will stay at a sustained higher level, kind of above that $100 level. it's about the 75 to 80 is what they need for it to break even. but, you know, there are -- there is so much momentum behind nuclear, the u.s. led a group of about 20 countries back in december at cop saying they are going to triple capacity by to 2050 and reading the signals this will be here for the long term. >> you said russian supplies have not been sanctioned because they're such an important part of the market. sort of more of a geopolitical question, is there risk they could be sanctioned? >> absolutely. a lot of calls from u.s. lawmakers, a lot of bills have been introduced saying we should stop the imports of russia because they're not so much a huge miner but really important conversion and enrichment process. all of these rounds of sanctions in the european union as well, it's been left alone because there is no alternative. now, the nuclear industry is not

a just in time industry. you typically have uranium on hand for about two years. so now u.s. utilities are saying what if russia decides to weaponize uranium and stop sending our way, then what are we going to do. already they're renegotiating contracts with u.s. suppliers. they're no longer looking at russia and looking for alternative sources because there is that rick that if russia decided to cut off exports, what would we do? nuclear is 20% of our grid. >> fascinating stuff. pippa, thank you for joining us. coming up, crypto's climb to new highs, bitcoin lower today but still big up other the past year. they use a lot of computing power between mining and storage. so, is all this computing power hitting the grid? we'll discuss that next.

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lunch." independent arizona senator kyrsten sinema says she will not seek reeex. the move will avoid a rare three-way contest for the pivotal seat. the senator had been running out of time to launch her re-election campaign. she was facing an april 1st deadline. the education department imposed a record $14 million fine on liberty university for violating federal campus safety laws. the large christian school in virginia is accused of failing to disclose on campus crimes, including sexual assault. and two-time grand slam champion simona halep has been cleared for an immediate return to tennis. the court of arbitration for sport reduced her four-year doping suspension to just nine months. they found the former world number one was not entirely at fault after testing positive for a blood boosting substance at the 2022 u.s. open which they determined was the result of a contaminated supplement. back over to you. >> kate rogers, thank you for the news update. stocks are pulling back here today from near record highs.

the dow is down at session lows so far right now. but so is bitcoin. it's pulling back as well. trading you can see there just around that 65,000 mark briefly setting the new record above 69,000 for the first time since november of 2021. an interesting stat since our data on bitcoin began back in july of 2010, bitcoin is up, this is not a ypo, 70 million%. million%. 70. join us now with more on the rally, to record highs is mackenzie, we see it, some people just choose -- they don't want to believe it and some people are skeptical for good reasons, but this run has been stellar. >> yeah. and there are a lot of drivers of this record rally. some simple, others a lot more complicated. so let's start with the biggest and most obvious. that's the approval of biscoin spot etfs that happened in early

january. bitcoin is up more than 50% this year. in less than two months the ten u.s. spot bitcoin etfs brought nearly $50 billion into the space. blackrock ishares bitcoin trust is the fastest an etf has ever gone from 0 to 10 billion in assets. now let's get slightly more complicated. bitcoin has always been front and center when investors think of crypto, many in the industry favored ether because it has more practical use cases. now innovations may allow bitcoin to reach technological parody with ethereum and all of that is encouraging investment in new tokens on the bitcoin block chain with much of that interest coming from asia. the price moves are also being driven by momentum. the higher it goes, the higher it keeps soaring. >> this is such fascinating stuff. many of us are trying to get around our hands of bitcoin in either direction and the movers. for more on the bitcoin rally and crypto trade overall, let's

bring in managing partner at knee owe classic capital and former trader at goldman sachs. mike, mackenzie laid out a number of reasons why we see bitcoin going higher. her last point to me is the most fascinating, momentum. starts going hire and just keeps going so. what are your expectations for where the price of bitcoin is going and what do you think the biggest drivers are and will be. >> sure. so you mentioned 70 million%. the most amazing part is that bitcoin hasn't changed at all. bitcoin stayed exactly the same from day one. the world around it has changed quite a bit. so you think about in a different way. people aren't necessarily buying bitcoin. they're selling things that aren't working anymore. it's almost like they're handicapping the global government's ability to navigate the next few decades. it's a live bet on the central bank's ability to land the economy. clearly between me and coins being the best assets the last seven days, crypto punk selling

for $16 million, funding rates doing through the roof, there's obvious speculation. the intrinsic value of that option of built coin versus the rest of the world continues to grow. so i think that's where you're getting a steady base of inflows but the speculative piece is that day to day price fluctuation you see. >> the spot etfs, the money they're taking in is fueling this demand. you're having more i guess fundamental institutionalized demand coming through. it wasn't that long ago we were talking about black market stuff. right? this idea that we were using things for elicit trade and all of the bad cases for use of bitcoin was coming about. what exactly then does this next leg look like? does it include that conversation all other again? >> yeah. i didn't want to repeat the block rock infidelity comments everyone said for the last three months. i would say that's obviously a credentialization of the asset

class. we'll use the term financialization of the asset class being bitcoin, being traditional assets, being part of the traditional asset optimal portfolio. a friend of mine does crypto for one of the largest firms in the world he mentioned monday was his largest day ever from those constitutional clients. you have both the retail market and obviously that's a large part of the market these days both in stocks and crypto as well as the institutional size. everyone is very excited about it. it's definitely changing the scope of public assets. so obviously a lot of viewers of cnbc will be trading things miners, coin based stock, micro strategy, all different drivers. those wails will drive some of the invasion mack mentioned around bitcoin machines. because they have the ability to sort of allocate bitcoin value to those platforms. coin base is obviously decentralized neo bank of the

future and building things like base and the miners are fairly interesting because there's enormous alpha to be had post having. look at the low-cost scaleable miners outperforming some of the ones that will come into pretty difficult time. i think between all the assets there's really interesting opportunities to trade each of them. but obviously the etf flows have been the story of the last six months. >> can i make one other point on that? >> please. >> what's noteworthy the asset managers and ras haven't cleared the etfs yet for their clients. another wave of interest which goes to a larger point that mike was just makesing, you're going to see a lot of the supply go away, the market having the coming up in a couple weeks. it's naturally designed to create scarcity around this asset. >> okay. a lot of people were still trying to grasp the having concept. this idea that you're not going to have the growth of supply of bitcoin be nearly as robust as it was pre-having. that's the whole idea. >> it happens roughly every four

years. it cuts the supply in half. the new circulation. it's baked into bitcoin's code. it's a naturally meant to have this deflationary effect. you're seeing a lot more companies building on top of bitcoin that layer two ecosystem and they're scooping up a lot of the supply. >> all right. mike, all of these things are huge. right? but there's still going to be power usage that becomes an issue at some point. we talked about ai and data centers and how much power they're going to use. how much does crypto currency factor into the future energy profile of not just this country but around the world if its use is to hypothetically keep going on its trajectory right now. >> it is part of a major part of transition to clean energy. you think about whether it be stranded energy or scaleable alternative energy -- i'm full disclosure on the board of tera wolf we power through nuclear

power and hydro power, two of the cleanest forms of power in the world and continue to scale out those facilities. there's this push and pull now between the mag seven looking for alternative power sources for their ai applications and the high-power compute that comes across that and demand on some of these data centers. and so i think for a lot of the global bitcoin miners they're going to constantly need to seek the lowest cost of capital or lowest cost of power, i should say, to continue to mine bitcoin because it is a clear-cut. we had a run in bitcoin, but there has been, you know a cut in supply. so every block of bitcoin you're mining, there's less revenue associated with that. so i think the low-cost miners will have an opportunity post having to get through their own little distress cycle and either acquire or scale profitably if they have the ability to do so through scaleable mining sources. that's an interesting concept because you know it's a way that most hedge funds traded this sector for a period of time and there will be material alpha

generation versus basket trading versus bitcoin 70 million percent. never done any mna, a beautiful, simple product. >> you know, there is this dynamic of bitcoin mining creating a financial incentive to do more renewable buildout. i was in ethiopia and kenya seeing hydro power because bitcoin miners are creating financial incentive that didn't exist before. so you're seeing that dynamic at play globally. if you look at texas, a lot of miners who say they're helping to stabilize grids. when you on board on to the grid that's a good thing but you need a base load. when there isn't the supply there, you can help round it out. so it is an interesting dynamic there. >> and there's a point where we -- between ai and bitcoin mining and otherwise, we need to secure alternative sources of power. that taps into base load power we're in trouble. but it's very exciting what's happening right now with flows. i think what's more exciting, what my firm focuses on is more

around innovation happening both on the bitcoin block chain and ethereum and ore forms of smart contract and decentralized on chain capital markets. both in the consumer side and the finance side. i think that's really at the end of it, bitcoin is extremely simple and wonderful and you always continue what we say stack stats accumulate bitcoin other time. don't try to time the market unless you're a professional trader. it goes to show you stacking stats is as simple as the asset itself. >> case in point today, guys, we topped 69,000, trading at 61,000 handle right now. mike, thank you very much and mackenzie. mack, thank you. excellent reporting as always. still ahead on the show, elon musk is no longer the world's richest person, but that's the least of his problems this week from a suspected arson attack at tesla berlin to lawsuits from former twitter exectist. our next guest will tell us if

now is a good time to be a tesla shareholder, maybe buy the dip. "power lunch" is back in two.

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welcome back to "power lunch." time for today's three-stock lunch. here with our trades is david trainer, first name is tesla, down nearly 25% in the last three months. which means elon musk is no longer the richest man in the world on paper. losing the top spot to jeff bezos. david, what's your trade on tesla? >> still this is a no brainer. in addition to extreme valuation risk, we're now seeing real earnings quality risk. the stock now gets our strong miss earnings distortion score. it was one of the top five stocks in the s&p with the most misleading earnings. and we think this is a sign of more bad to come for a business that's competitively challenged, losing market share, seeing profitability erode, and really not able to keep up with its competitors anymore. >> all right. it's down 1% over -- 9% other the last 12 months. we'll see what happens there, down 28% year to date. next up, let's talk about lithium miner albemarle, market

seems to view it as a sign of how difficult the business environment remains for lithium companies. david, is today a good buying opportunity for albemarle shares? >> we think so. we think the stock is cheap and underlying economics are strong. we also think there are major macro tail winds coming in the commodities and specially chemical development markets because both china and russia have really china through super low cost labor and russia through just dumping kmod tis on the market for most of the last 20 years, we think those trends are coming to an end. and there's going to be an enormous amount of on shoring and production of specialty chemicals. and that's going to change the landscape for these companies and now is a great time to pick up albemarle at a good discount. those macro tail winds is something most people don't see but will make a big difference in the last five to ten years. >> gold, commodity trading near

all-time highs. what's your trade on bark cold, one buy and one sell so far. >> courtney, you took -- stole my thunder. what else do you have to say besides that. it's difficult to buy anything commodity related when it's at an all-time high. sure could run up more, but then really it's it is hard to buy anything commodity related when it is at an all-time high. sure, it could run up more, but then it is even more of a speculation than it already is. i think the commodities are a very speculative investment vehicle, as it is. and look, the fact of the matter is, gold is seeing competition in a way it didn't before. the cryptocurrencies are really taking share from gold as an investment, and that is a trend that is not going to reverse any time soon. the price at an all-time high. the company, barrick gold, the economics of the business have been poor, always have been, it is a shareholder value destroyer. we don't see a lot of reason to believe there is a lot of upside selling.

>> david schrader on new constructs. we appreciate it. thank you. >> thank you very much. still ahead, serge is getting candid about googles gemini launch. we will hear with the cofounder had to say, next. 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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we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. we have just three minutes left in this show and several more stories we want you to know about, so let's get right to it. the consumer financial protection bureau unveiled a new rule today that would cap the leafy banks charge customers at eight dollars per incident. these usually average around $32, so the cfpb says the cut would save more than 45 million card users an average of $220, annually, on late fees. it also, at that level, implies that there are a lot of people who are late multiple times throughout the course of a year, on thursdays. >> i was thinking that, too. you are focusing on credit card delinquencies and what that

means or how that could sin consumers, maybe financially, as we are still on this rising interest rate or high interest rate environment. it's very fascinating. we will see if this works. obviously, president biden really has been at work, in these so-called junk fees. over the weekend, google cofounder sergey brin said the company "definitely messed up" the gemini launch. brin said it was not -- was due to not thoroughly testing it, and for good reasons, upset a lot of people. is is one that we keep talking about, the gemini launch. some misrepresentation of historical figures and otherwise. >> and it is not just that. it is about this idea that ai is in such an early part of the game, early innings of what is happening right now, that there are going to be these hiccups, but these ones just became so high-profile and so egregious that people had to come out and say something about what happened. >> very much so. but i guess, good for them for admitting that they messed that up. after a year of hot

controversy, harvard has regained its position as the ultimate dream school among college applicants. the ivy league university bested last year's dream college, which is m.i.t., the massachusetts institution of technology, to secure the top spot, according to a new survey from the princeton review. the changing paradigms and economics of college education and secondary education, just huge here. but harvard, i think at a certain level, people do, if they have the chance, want to go to harvard. >> i guess harvard is probably very lucky that it is hard to destroy that hundreds and hundreds of years of brand image with one person. >> but there is a lot of stuff going on. >> very true. it has been a fascinating you're listening to my friends, anecdotally, apply to colleges, and see which ones do not. delta became the latest airline to raise its checked bag fee, this time by five

dollars beginning today. it will cost travelers $35 for the first checked bag, $45 for the second checked bag. this is the second baggage increased by delta since 2018. the company says this will help them stay on peace with rising interest costs. the airlines saw how much money they took in. >> the balance is tough. overhead bin, check the bag -- >> i know. anyway, thank you very much for watching "power lunch". >> "closing bell" starts right after this break. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley. (vo) what does it mean to be rich? maybe rich is less aboutu reaching a magic number... and more about discovering magic.

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welcome to "closing bell", i am scott wapner live from cnbc local headquarters today. this make or break our begins with tumbling tech. whether this is the start of a bigger pullback for that sector. we are going to ask our experts over the final stretch. meantime, take a look at your scorecard. with 60 minutes in regulation, nasdaq is the center today. apple, that stock is around 170 for most of the session today. barely hanging on ther