>> amazon. >> thank you for that. >> liz? >> energy, i think it gets the rotation and pays good dividends, so as rates come down, look at it. >> jp this >> my lock of the week, robert downey, jr., best supporting actor sunday night. >> home team? >> it's a comcast movie "omen h -- oppenheimier." >> all right. "the exchange" is now. ♪ ♪ all right. thank you very much, scott. welcome to "the exchange." coming to you live from the newly revamped studio a at cnbc global headquarters. here's what's ahead on the show. biden and business. president expected to go after the wealthy and corporations in the state of the union tonight. we look at the changes he wants to make and the potential impact for businesses and for wall street.

plus, powell wrapping up day two of testimony on capitol hill. cleveland fed president loretta mister joins us exclusively with the more on the timing of when the first rate cut could be. and then we have the action, the story, and the trade on three more names getting ready to report results. our trader likes two of them, and she's here with the names and what makes her a buyer. we begin with the markets overall. it's green. the headline today is a record high. again, a record high for the large-cap s&p 500 index. we'll put a star right there right now. at one point, it was as high as 5156. it's currently up 1%. the dow is the laggard on the day, just up maybe 1/3 of 1%, 120 points to the upside, 38,781. but the real outperformer is the tech heavier nasdaq.

not a record yet, but darn close. it's up roughly 1.5%, 231 points to the upside. 16,262 the last trade there. meanwhile, check out some of the earnings movers. a check on the consumer economy. supermarket giant kroger, you can see here up big, about 9% after a better than expected earnings report on a slight miss in revenues but better than expected full-year guidance. american eagle up 3% after the teen apparel retailer reported better than expected results. we are seeing a very big drawdown in chairs of lingerie at victoria's secret, down by 30%. better quarterly results, but current quarter, well below estimates. let's get a quick check on the new york community bancorp, which is up 8% right now, $3.73 after it received more than a billion dollars in terms of a cash infusion from liberty strategic capital, run by steven

minuchin. we have a number of round tables saying earlier today what they want out of the white house, and overreach of regulation, not enough certainty around regulation, some ofthe big concerns that are permeating through the ceo community, as it's putting party before country. this as joe biden is expected to call for tax curbs on corporations and the wealthy in tonight's state of the union address. our washington correspondent has the setup on sotu, and kyle bass is here with what wall street will be watching and listening for. he's founder and chief investment officer at heyman capital management. megan, we begin with you and the setup for the state of the union. >> thanks, dom. we expect joe biden to come out swinging in tonight's speech, laying out proposals to raise taxes on corporations and the wealthy.

so he'll call for the first time to raise the corporate minimum tax to 21%. that will be up from the 15% level that he signed into law two years ago. and he'll be proposing to cut taxes for all employee salaries above $1 million, an expansion of the law that -- a couple of other highlights might sound more familiar. he wants to quadruple the stock buyback tax from 1% to 4%. he would like to close the tax loophole and propose to raise taxes on billionaires. all this comes as part of a speech that's focussed in no small part of the economy. he will talk about leveling the playing field and previewing a budget that the white house says would reduce the deficit by $3 trillion over the next ten years. and dom, while it's important to note that these are still just proposals, they do at least offer us a preview of the way joe biden will be looking to draw a sharp contrast this year

between his agenda and that of former president trump. >> we talk about the way things are going to react, it's largely expected is going to happen here. what exactly will the republican party be looking to key a little bit more on when it comes time for the rebuttal that's going to happen after the state of the union? >> yeah. the rebuttal is their chance to reset the message right, and they're going to be looking to make their own contrast, things like the stock buyback tax. all of these things are going to hit the stock market. they're going to trickle down into the real economy. the pushback on the junk fee agenda. he says that saves americans money. republicans like to say that really that hurts corporations, and that trickles down and ends up costing all of us more in the long run. so you're going to see really that contrast emerge. >> megan, thank you very much. let's turn our attention now to our first guest who is well connected in the business and

political donor community about what he would like to hear from joe biden later on tonight. joining me now is kyle bass, the founder and chief investment officer at heyman capital management. thank you very much for being here with us on "the exchange" this afternoon. megan set it up. we kind of know what we're going to get from joe biden and the gop. what will you be listening for and keying on for tonight's address? >> you know, it's pleasure to be here. i think the entire united states, including wall street, really wants to hear something about how biden can possibly start enforcing the laws at the border. i know that's not a financial response, but everything that you hear in that previous segment is all some sort of populism, and it's a bit of grandstanding. how do you raise tax on billionaires alone without implementing a net worth tax, which is unconstitutional.

remember, last year alone, the federal government had $4.4 trillion of tax receipts, and we spent $6.1 trillion. we spent 40% more than we brought in, in tax revenue last year. we are awful employment. so the inmates are running the asylum. the fed and treasury are helping. this isn't just the democrats. this is democrats and republicans alike. so i think what republicans and what the country at large wants to hear about is how we're going to combat inflation, because we've had runaway inflation the last three years. and what we're going to do about the border. everything else is just some sort of populist stance that's being taken for a speech. >> now, kyle, the narrative has shifted a little more, as you point out. a lot of polling data suggests that americans are keying a lot more in on things like border security. it used to be kind of the economy front and center, but

now they're running one, two, the economy, border/inflation. is there anything you see developing message wise from both these sides because of the change heading into the election in november? what are these candidates going to say, and are these candidates tackling it the right way? >> you know, i'll get a little more technical here on the financial side. the institutions that are at the top of our country, again, fed and treasury on the financial side, have their slush funds. they have the ability to create an economy that feels good, but it's not operating properly. what i mean by that, the overnight reverse facility at the fed, you know, we're still at about $800 billion and they intend to run it to zero, of course, right into the election. and i say that,because we are all wondering why the economy

hasn't slowed down, and i think the reason that's happening is you're seeing these fiscal and financial authorities push liquidity into the markets. when i think about what we're looking for going forward, when you think about border security, the economy has to -- when you think about the economy, the economy has to be split into two categories. one, the economy. when you look at the numbers, when you look at real gdp as it's recorded, and you look at economic growth as it's reported and employment as it's reported, it looks type. but when you go to people's wallets and you realize that inflation disproportionately affects the poor and the lower middle class, you've got a problem because we've seen roughly 45%, 47% true inflation over the last three years, and the fed has only admitted to about 17%, 18% of that. you can't spend a chain weighted dollar. people spend real dollars, and what you're seeing in the ethnic minorities and in the lower socioeconomic groups, they're all ranking inflation or the

economy as kind of their number one issue and they're ranking border security as two. and i think that's why you're seeing biden poll so poorly right now. >> it might be because a lot of those people have dealt with inflation themselves in their point of origin or their families have, and that's the hyper sensitivity. i would like to turn towards the cross section of the economy and politics and the market. we're in a market that is at record highs of the s&p 500. the nasdaq is not far away. it seems to eindeindicate, the markets are pricing in something down the line today, that's promoting some kind of optimism. is that optimism warranted in your mind? and are these candidates, president trump, joe biden, the two of them together, the best people, one or the other, because it's going to happen that way, to lead this economy into the next leg that it has? >> i mean, look, if you're talking about the economy, plain

and simple, then the answer is, trump's better than biden. if you're talking about these two people being the best the u.s. has to offer, i think we both know the answer to that one, dominic. we are better than this as a country, but unfortunately, these are the people we're left with. when you think about -- yeah, i think we're talking about leading our country into what's happening going forward, and i think between trump and biden, i think it has to be trump. obviously, we all know what biden's weaknesses are on his -- on his ability to be coherent and actually answer questions in interviews and deal with the country in a way that he has in the last few years, that would be a disaster for our country. we have let over million in, in the last year, unchecked. we're kind of letting the enemy get behind the gates, and at

some point in time, something bad's going to happen. on the economy and the markets, i think the market's doing what it should do, given the enormous level of liquidity that's being pumped into it. i think you might see a reverse effect. when trump won in 2016, the markets sold off and the futures right after the event, but then by the morning time, they recovered everything and had a giant rally once people figured out he would be positive for the economy. i think the reverse could happen. i think so much liquidity has been pumped into this market, that regardless of who wins, once that liquidity dries up, i think markets will take a pause and probably have a down move post election, regardless of who wins. >> you know what, kyle? one of the things that fed chair jay powell told congress over the last couple of days, specifically today, is that the u.s. is fairing better than just about every other advanced economy in the world out there. and one of those is china, which

is the second biggest economy in the world. there's no doubt, if you look at the data, they can sugar coat it all they want, but china is nowhere near as good as the u.s. you've been critical of china. do you think that chinese story has played out enough to the downside versus what we're seeing here in the u.s.? >> yeah, i don't think so. i think investing in communism long-term has never worked. let's just go back and look at msci china's index. in the last 30 years, if you invested in the china index, you're at break even. you haven't made a penny. think about that. in the last 15 years, china's economy has grown, reportedly, 500% gdp, and if you invested in the shanghai index 15 years ago, you've lost a third of your money. imagine investing in an economy that's grown 500% and losing a

third of your money. i mean, it doesn't matter if it's "played out" or xi jinping might say something about stimulating the economy and it might have a week or two of gains. in the long run, westerners will get fleeced in investing in china. i have just been honest what you're going to get. in the end, you see what you're going to get in the last 15, 30 years, you're actually not making a penny, and you're taking enormous additional risks by investing in a communist party that's a party driven market. >> kyle, we know that china is not on the top of your investing ideas list. can you take us through what exactly is the top investing idea that you have permeating around your world right now? >> you know, i think anything that is a productive asset, specifically in the u.s. again, i go back to quoting the facts. you know, the u.s. has grown its gdp about 72% in the last 15

years, and our market is up 340%, including dividends. and we have a rule of law, and we have the deepest most liquid capital markets in the world. so when you think about what you want to invest in, again, i think things will slow down post election for a while, and i think that any kind of asset, that's a productive asset in the u.s., i think whether you're looking at apartments or income producing companies that focus their business in the u.s., or from our perspective, you want to get in front of the demographic trends and buy real estate in state where is you see a migration from high cost, high tax, mismanaged states to the states that are pro-business, lower cost and no tax, like florida, tennessee, and texas. you want to get in front of those macro population demographic moves, and you know, you want to buy real estate in areas that you think over the next decade is going to do really well.

again, whether that's income producing real estate or even rural land in areas that you think are going to see expansion into, that's where we're putting all of our capital. >> kyle, it's a much longer conversation. we'll have to have it in a much longer format. thank you very much for your thoughts. see you soon, sir. well, the latest economic data is showing jobless claims staying at 217,000 last week, still at historically low levels. but the next guest says the tide is turning a bit, with workers starting to feel the pinch of layoffs. joining me now with some clues about tomorrow's jobs report is evan sone. thank you very much for being here with us. you heard kyle bass and some of the commentary he has with regard what's happening in the u.s. right now. there are problems, no doubt about it. but largely, the economy, the job side specifically, has been awesome. what gives, and is it going to turn lower any time soon? >> you know, look, the job

market still remains incredibly tight. there are a lot of factors going on. the first is that the rapid quit rates that we saw during covid have come back to precovid levels. yet, there's a whole population of people, and on the recruiter index, 42% of the candidates recruiters are speaking to had two jobs over the past two years. so do you really want to have that third one? i think not. so there's going to be this reluctance to quit, unless, of course, there's a reason. and this reason we just showed on that slide, we used to look at compensation and management being the reason people were looking to leave. but what is other? whether they're scared or a layoff coming, there's some other reason getting a candidate to leaving theirjob. maybe they're worried about ai or contract labor. we're seeing those sort of hints and clues that's going to affect the overall job economy. >> the tech trade specifically,

and finance, banks and what not, wel aallusions, if you will, is that playing out in the numbers? >> absolutely. we have a partnership with aura. we saw a real serious jump in ai-related roles in february. those numbers were up over 60.5% from january, with the biggest sectors really being in financial services and in i.t. so we had this prediction we made last month that we're going to start to see people swap. we're going to see companies lay off certain software skills and replace them with other software skills. so we don't see ai replacing people yet, but really looking at the software roles, really these companies start to make more and more investments in ai. >> evan, how secularly

significant, if we can use that term, secularly significant is this pi cot to ai? you mentioned banks and ai. how much could it impact the job market in the next five to seven, ten years? >> huge. that's a great question. you look at what helped companies make their numbers in '23? it was layoffs. so companies were just laying people off, and that's how they hit their numbers. you looked two week ago, fantastic results from shifting customer service roles into ai and generative ai support roles. you're just see thing incredible increase that they had to their bottom line. every company with a very significant size customer support group has to be looking at, is this something that we could be adopting? i think a lot of the ai roles now are looking at the future and shifting those more

laborious jobs that could be taken over through a chatgbt or ai roles. >> all right. evan, thank you very much for the thoughts. >> thanks for having me. we're just getting started here on "the exchange." coming up, an exclusive interview with cleveland fed president and fomc voting member loretta mester. and cigna's shares hitting an all-time high as they expand health coverage insurance for weight loss drugs. we'll speak with the ceo live. "the exchange" is back after this. 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.

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welcome back to "the exchange." fed chair jay powell is done with his second day of testimony on capitol hill, but while powell was before congress, cleveland fed president loretta mester said the central bank should be able to begin cutting rates later this year if inflation keeps cooling. joining us now is our senior economics reporter steve liesman alongside cleveland fed president loretta mester. steve, i'll send it over to you. >> dom, thanks for that wonderful introduction. i am pleased to bring loretta mester, the cleveland fed president, live here from the cleveland federal reserve office. loretta, thank you for joining us. i want to ask you, fed chair jay

powell, in the last couple of days sitting before congress, said he needs a little bit more evidence to be confident inflation is falling. he said we're not looking for better inflation readings, just more of them. does that describe your -- what you would need or your test for being confident to be able to reduce rates? >> thanks, steve, for having me. i would like to see inflation move down a couple more data points so we can be confident on that sustainable path to 2%, and whether that's a little bit more evidence or a little bit more evidence, that's in the eye of the beholder. but i want to feel comfortable that the january inflation reading, which went up a bit more than the markets were expecting, that we can revert then inflation coming back down. i do think if the economy evolves the way i anticipate, which is more moderation on the demand side in terms of a little bit more moderate employment

growth and, you know, not as strong as spending as we saw last year, with that mod rating, that we'll be in a position later this year to begin taking back some of the restrictive policy we had to put in place to fight inflation. >> do you feel like you have time to make this decision, or are you worried about the idea that the economy would weaken in a way that you don't expect? >> no, i mean, my forecast is that the economy is going to remain pretty solid. you know, we had 3% growth last year. i think we'll be below that this year, and employer growth will moderate. but i think the goal here of the fed, to my mind now is, let's ensure that inflation is on that sustainable path back to 2%, while later markets remain healthy that's this kind of balancing and risk management we're going to characterize policy this year, is how do you

balance the risk? early on, it was inflation. labor markets were strong and inflation was way above 2%. so we rightly focused on that part of the mandate. i think this year we do have to now, with inflation coming down, is really take into account the risks around both parts of our mandate and calibrate a policy that achieved both parts. >> president mester, i have to listen to the congressmen and women ask questions of the chair and they don't ask the questions i would ask. one of the things i would have loved to have seen them ask is how much restraint do you think is being put on this economy? this economy doesn't look like the fed funds rate is restraining it at all. on the other hand, there's this th construct -- what is your best guess to how much restraint should be put on the economy? >> i think policy is

restrictive. i think we have seen it on the demand side, if you think about the most interest rate parts of the economy, spending and investment was down last year. i think it will moderate further this year. the housing market, we've seen also the effects there in terms of sales and starts. so it is affecting the economy. i think in real time, the long run, neutral rate probably isn't the rate to look at. it's what is the short run neutral rate? we saw in the pandemic that because of the supply side disruptions, that had gone up. so over time, you know, i think the job of the fed is going to be to try to normalize or bring rates into a more neutral stance over time, realizing that we want to do it in a way that's very respectful of both parts of our mandate, ie inflation coming back down to 2% on that path, and the labor market side of the

economy remaining healthy. over time, i think the neutral rate will -- the short run neutral rate will be coming back as the supply side heals, and we need to navigate in that environment. so it could be that over the longer run, we have a higher neutral rate. i think a lot of people are thinking about that. we've seen very strong productivity growth numbers, if they last and trend productivity is higher than before, maybe potential growth is higher. maybe the long run neutral rate is higher, as well. but we don't need to know that today. what we need to know today is, is inflation coming back to 2%, are labor marketsremaining healthy and navigate to that. >> president mester, one of your colleagues talked about pent-up exuberance, this concern that once rates are cut, you have have this windfall of investment

and other behavior that might push up inflation. is that a concern of yours, as well? >> we talk to a lot of businesses. a lot of them say, well, the higher rates did make me put some of my plans on hold. i don't think i'm very concerned that is when we start making policy less restrictive, it's still going to remain restrictive, that we will see a big boost in a lot of projects that will put pressure on inflation moving back up. but this is the normal sort of monetary policymaking, if you will. we have to be attune to both the demand and supply side of the economy. in this pandemic period, it was a lot of supply side that we're not used to seeing move as much as we did. we'll navigate that as we go forward. i'm not hearing from a lot of businesses that they plan a lot of activity. but when interest rates begin to move down, some of the things we put on pause, they will be

rethinking them. and we'll just have to be aware of that as we go forward and navigate that, which is why i think when we begin, you know, to move the fed fund rates down, we'll do it in a gradual way to be very respective and do that risk balancing that we need to do going forward. >> i'm sorry, time for only one question. you talked this morning about a risk management approach. you said the bigger mistake could be to move rates down too soon or too quickly. if what you would be working against is the idea of higher unemployment and a recession, why is that the bigger missnake >> no, i said at this moment, if i'm doing the risk call culatio this moment, i see the risk moving down too quickly. we're in a really good spot with monetary policy. right now, we have strong labor markets, solid spending. and we have inflation that's still above 2%. we have -- we're in a very good

position. the policy is in a good position so we can take the time to look at how the economy is evolving. and then, when we get to that point where we're confident inflation is on that path back towards 2% in a sustainable way, we can begin to lower the funds rate and take back some of the restrictiveness that we had to put in place. at some point, you know, we'll have to see how the economy evolves. certainly, you know, we would be in a position given where policy is to move faster if we had to, if there's a deterioration of the labor markets. that's not my base case. my base case is that we'll probably have a gradual moderation on employment growth and healthy labor markets. that's certainly my goal is to maintain healthy labor markets as we get inflation back to 2%. >> thank you for joining us. i hope we'll see you again soon. >> thank you very much, steve. pleasure to be with you. >> dom, back to you. >> thank you very much, steve

liesman and cleveland fed's loretta mester. coming up, new york community bancorp touched a 29-year low just yesterday before getting a billion dollar plus capital infusion. we'll look at the next steps and the fallout for the rest of the regional bank sector. iss ckft ange" iba aer th.

welcome back to "the exchange," everybody. i'm tyler mathisen. xcel energy said today its facilities may have been the cause of the smoke house creek fire, the largest wildfire in texas history. a new statement today, the company said it was cooperating with investigators and will help those affected by the fires but denied claims that it was negligent in maintaining its infrastructure. the wildfires have claimed at least 64 homes across two counties. the ntsb is looking into last month's united airlines 737 max 8 flight that had a stuck rutter pedal issue while landing at newark. the probe is just the latest trouble for the boeing 737 max product line, after the mid-air

door blowout on a max 9 in january. an all-woman crew staffed the flight earlier this morning in honor of women's history month. the united airlines flight from newark to sarasota was helmed by a graduate of an hcb pilot program. the group of united captains that were graduates. congratulations to them, united and back to you, dom. >> thank you very much, tyler mathisen. coming up, cigna shares hitting a record high as the company holds investor day today. we'll speak with the ceo about the insurance for weight loss drugs. and sharing of rivian moving higher after they unveiled their smaller sized suv. live ya

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welcome back to "the exchange." shares of cigna group touching an all-time high today, up more than 30% over the past three months alone, currently wrapping up its annual investor day just across the river in new york city. bertha joins us now with cigna's ceo david cordani. bertha, over to you. >> thanks, dom. it's interesting, dom just talked about you as a health insurer, but really you are, i would say a health conglomerate

as are many of the big companies. one of the things i found interesting today during your investor day is you talked about how you're really leaning in much more to the services side, particularly when it comes to medicare. there was talk you were going after a medicare asset, but you're now divesting what you have. why are you leaving the medicare advantage on the market side and focusing on the service? >> we have a large benefits portfolio, that's about 40% of the company,and we have a significant service portfolio, that's about 60% of the company. both are growing meaningfully. the services business over the last five years has added $90 billion of revenue. as we discussed before, that's like birthing two fortune 100 companies over a five-year period of time. so we see tremendous growth opportunity. across the services, whether it's pharmacy services, specialty pharmacy services, home care, we see the ability to continue to grow.

specific to your government programs, we see the government space as a continued growth opportunity. but our focus is on the service side. we have the ability to serve health plans, in terms of bringing additional service to them, whether it's medicare, medicaid, exchange, or other programs. and our model has been proven where we have $180 billion of revenue in our service portfolio, which will grow $20 billion from 2023 to 2024. so we're excited about the growth algorithm that we have. >> one of the things that you're focusing on is the glp-1 diabetes and obesity drugs. how will that work to reign in costs, and what would that mean to me if i were a patient on that drug? >> so we built our portfolio of capabilities guided by forward looking trends. for the next decade, pharmaceutical innovation is going to define the next decade.

glp-1st r are an example of tha. the vast majority of all clients immediately began to cover glp-1s for diabetes. the additional part is for obesity, those are choices that employers and health plans are taking. employers who started to cover, some of which dropped kompl because of the cost profile. we, harnessing the breadth of our capabilities, information, clinical program, lifestyle management, as far as pharmaceutical resources, we launched a new program today which you referenced, that has a guarantee. we're able to bring alignment and a guarantee for a portion of a population who will be covered um under obesity, and with alignment back to the pharmaceutical manufacturers to give broader access to glp-1s for obesity management, more predictability for employers, and importantly, alignment.

one thing that guides our business is alignment. we want to align the objectives between ourselves, in that case an employer or health plan, and the pharmaceutical manufacturer. there's a high degree of interest in the marketplace. >> you talk about alignment. you know, earlier this week, the white house held a session talking about pharmacy benefit management firms, you're one of them in the process. mark cuban was there, and he talked about pbms being everything that's wrong with health care. there's been tremendous pressure, regulatory and a lot of talk about pbms. how are you dealing with that, and where do you see things going? are some of these changes, like that glp-1 program in response to that criticism? >> the marketplace has a common definition of what a pbm is. let me step back for a moment. we seven in excess of 100 million americans today. fully 75% of our customers, fully 75%, so let's round out to

75 million americans had less than $100 out of pocket costs over the course of the entire year from their pharmacy services. additionally, because we're a care management organization as well, we closed 5 million gaps in care. those are 5 million moments that by harnessing data and clinicians, we were able to help somebody avoid a major health catastrophe or improve their health. that may be keeping them out of the hospital or avoiding a coronary crisis -- >> but there are people on specialty drugs that pay a lot more than that $100. >> i referenced 75%. medications falls into one of two categories. people will pay up to their deductible, and then pay zero in addition to that. we have taken further steps. our embark program was the first of its kind. we took two gene and cell therapies that literally cost a million dollars and zero financial responsibility for an individual and $1 per member per

month to provide predictability. additionally, we announced the fact that we will have a biosimilar with a zero dollar out of pocket obligation. we continue to drive-in novation that is patient centric, and physician partnering on a go-forward basis. we serve today proudly the largest employers health plans and government agencies and we'll continue to drive that forward. the space is a regulated space, so we'll continue to lean into regulation and ensure that we are delivering real value in the market. >> david cordani, we'll leave it there. thank you so much for joining us. >> thanks for having me today. >> dom, back to you. >> all right. thank you very much for the interview. take a look by the way at shares of novo nortis, surging to a record high. a phase one trial result for its experimental obesity pill is positive. participants averaged 13% weight loss after taking the drug for

12 weeks, suggesting the oral treatment would be more effective than wegovy. and the ceo will be on "money movers" tomorrow at 11:00 a.m. eastern time. and if you missed the premiere last week of cnbc's latest documentary, "big shot," which is the ozempic revolution, it's available now on demands and streaming on peacock later this month. right now, we turn to l rivian. and we have more on that story. let's talk about the results of why rivian is moving higher, and just how big of a game changer r2 will be. >> yeah, dom, there's three pieces of news that were just announced by the ceo at the reveal of the r2. that's one of the pieces of news we'll talk about in a bit. the first piece of news, which is what wall street and

investors will cheer, is that the company is pausing development of its assembly plant it plans to build in georgia. that's where the r2 was going to be built. they're pausing that development, not scrapping it, but putting it on hold, and that's going to in the near term save about $3 billion in capital expenditures. they plan on developing that plant long-term. but for the near-term they are going to build the r2 at the existing plant in illinois, and they're speeding up plans to bring that to market with production beginning in the first half of 2025. they made that announcement while introducing the r2, which is a mid-sized suv, expected to start at about $45,000. exact pricing hasn't come out yet, with a range of up to 300 miles. the third piece of news, which is sort of in the vain of saying

one more thing, there was one more thing from the ceo. they rolled out the next vehicle that will come after the r2, which is the r3 crossover utility vehicle. think of a smaller utility vehicle, electric utility vehicle, and a performance version, as well. that will come out after the r2. price remains to be seen, but it will likely come in at a lower price than the r2. you put that all together, dom, that's why shares of rivian are up more than 12% after this announcement today here in laguna beach, california. next hour, we'll be talking first on cnbc with the founder and ceo of rivian. we'll show you the r2 and the r2 and the r3x, the two models they surprised everybody with, and talk about this decision to move production to illinois, not try to develop an all-new plant in georgia for now. and how important that is in terms of preserving liquidity near term. >> all right. phil lebeau with the latest on

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welcome back to "the exchange." shares of new york community bank are higher after yesterday's billion capital raise. leslie picker joins us now with the latest developments there. hi, leslie. >> hey, dom. former treasury secretary steven mnuchin leading that investment telling "squawk on the street" this morning he reached out to nycb after the company's fateful 4 q earnings that triggered what's been a five week long spiral. mnuchin said the perceived risks around the loan book, noting whatever issues are still in there, they will be able to work through them over the next few years.

>> we like the multifamily business, so there's a time to work through this. i will just say, look, probably the biggest problem in the portfolio is the new york office. there's about $3.5 billion of office. with we'll looked at $2.5 billion of the $3.5 billion and taken into account what we think needs to be done. i would say the office portfolio is the one that, you know, we will work out of the quickest. >> on the other side of the balance sheet nycb said in a presentation its deposits dipped about 7% in the month through tuesday to $77 billion. on an earlier conference call nycb executives said yesterday's headlines that nycb was seeking a capital raise that sent the stock plummeting. those headlines had customers lining up to withdraw their money from the bank once the press release came out with all the details and all of the kind

of nitty gritty of this transaction. the stock stabilized and things went back to normal at the branches of the banks. dom? >> leslie picker with the latest on nycb thank you very much for that. let's get the trade on wholesale hardware and high priority documents. we're tackling today's earnings exchange and joining me victoria green g squared private wealth investment officer and cnbc contributor. we'll start off with costco on paste of its eighth positive week. baird expecting accelerating discretionary numbers thanks to tight inventory management. victoria, would you buy this one? >> i do. i know costco has been on a tear lately, but they're one of my favorite stocks in the sector and on the heels of the great kroger results this morning we feel they will have continued supply chain easing continuing to boost their free cash flow as well as the revenues and sales. we know their foot traffic and their sales are up in december and january from release numbers

they've given us, and we think we've seen big ticket items start to move beyond just the increase in sundries. i think this stock has room to run. always trade at a premium to their peers. not a cheap stock here but they're breaking out to new highs. they've broken out of the range and they will see upside and good earnings under the hood today. >> the costco trade is a buy from victoria. next up let's turn to semiconductors. broadcom shares more than doubling over the past year. citi expecting ai to drive sales. no surprise. also paying particular attention to demand from apple as well. analysts are watching accretion from its acquisition of vm ware in november. do you like broadcom here? >> i do. i think i like if i didn't recommend a buying stock in this ai environment. they had a core chip business. we were worried about slowness in the hardware and their core semi business. ai acceleration should grow from

15% revenues to 25% revenues. we think that soft demand on the hardware side should continue to grow and maybe that's bottomed out. growth on the semi side from the ai, growth on a better telecom and infrastructure and the vm ware took them $69 billion and 18 months, they can work on the synergies that gets them the hybrid cloud infrastructure. estimated maybe $12 billion accretion to revenue. i see upside to this stock and cheap relative to its peers because it's been a quality stock and already growing precash flow growing dividends and growing before the ai mania came in. i see that as a positive to an already strong quality stock and can have them catch up to some of the multiples their peers are trading at. they can have more upside. >> let's go to docusign which broke a losing streak last week. jeopardy watching enterprise demand and competition as last week's rumor of a buyout not come to fruition and cut 6% of

its workforce in february. >> docusign is a sell to me. the only reason you hold the stock is somebody takes it private. it fell apart. i don't like how many times they've had to restructure and cut staff. concerning to me is the revenues are falling for high multiple stock you're not seeing the growth in revenue to justify the multiple and the staff that they cut are from the sales and marketing side. if we see slower demand and we see in the core 300,000 revenue plus segment of their book which has been slowing, that's a huge s segment of the book we may see under threat. i feel like they may continue to lose customer base. >> got you. >> there is not a stock i'm excited about. >> victoria greene, g squared private wealth, thank you. we'll see you soon. >> thanks. that does it for "the exchange." "power lunch" will come up after this quick break. see you guys tomorrow. (christina) with verizon business unlimited, i get 5g, truly unlimited data, and unlimited hotspot data.

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good afternoon. welcome to "power lunch" alongside courtney reagan i'm tyler. glad you could be with us today. president biden will deliver the state of the union tonight and corporations are expected to be a target. we will discuss what the president's proposed tax increases corporately would lean for business and the stock market. >> plus we'll talk to the ceo of rivian as he unveils his latest vehicle at what could be a make or break moment for the company. news already coming out of that event. first a check on the markets. let's see where we are her