circle welcome in to power lunch i'm tyler mathis. glad you could join us. tesla's troubles, once a darling of wall street and now analyst are bailing on the name. we are talking about one who down priced the stock today to well below its current level.'s said also it isn't so magnificent. >> the houses boating to that of owning to ban tik tok.

the issue it's splitting parties . joining strange allies are two big republican voters are on different sides. we will explain a political tug- of-war. first, let's get a check on the markets. a mixed dan wall street. the dow industrials up one third of a percent. you can see the s&p has just now turned positive. it has been down today. the nasdaq composite is off by a third of a percent. dollar tree falling following its results in the company says it will close nearly 1000 stores. most of them family dollar locations. more on that, coming up or we start with tesla down 30% your today. phil lebeau joins us now with more on teslas woes. phil. >> it's a lot things that we have been talking about. the industry has been talking about for some time. people are now saying, maybe we should expect tesla to really face slower growth over the next couple of years. or at least in 2024.

really, three things stand out. first of all, the hybrid ice vehicle demand. ice vehicles, the sales are not growing there. they are so gradually losing their dominance. it's still a nice market. hybrids are growing in sales. there is ev price war, especially in china we are seeing it worldwide. that brings up the question when comes to tesla, what do we expect for 2024 deliveries? i went back and checked the analyst's estimate. go back to january and most were about to .17, 2.18. you look at the fax at estimates that's not the case anymore. it's down closer to 2.07 million vehicles expected to be delivered this year. they delivered 1.8 million last year. meanwhile, the berlin gigafactory which was shut down because of suspected arson nearby, that is once again resuming production. elon musk is over there today. and then you have the question of the analyst see shares of tesla right now? web bush out today reiterate omits price target of $315. we will talk to colin lincoln

shortly, he and other analysts are saying the writing is on the wall. at least near-term that the headwinds facing tesla are sizable and they will be continuing throughout 2024. back to you. we will ask you to stay right there as tesla is getting hit with a big downgrade to underway from equal weight over wells fargo citing numerous headwinds ahead. the firm expects volumes to disappoint and also lowered its price target from $200 a share to $125. here is analysts who made that call, colin lincoln and phil also on the line. calling, good to see you. i'm curious, what is the market share of tesla in the u.s. among total automobile sales, auto and truck sales and among ev sales? what kind of share do they have? >> they are very small in the overall market. they are very large in ev. we are seeing the point of our report today is that we are actually looking at the impact of the price cuts are surprisingly low at this point. we saw i am actually deliver

first have to second half globally up just 3% of pricing down 5%. that is really what is driving are lower deliveries. we are expecting is to be about flat this year. we are really expecting more limited ability to cut price, otherwise you hit a point where you're not very profitable anymore. >> you cut price and hope volume will increase, but you are not seeing the kind of lame increase that is, smart with the price hikes. what about this model two that they expect to bring out in 2025? is it going to be a game changer or is it too little, too late here? >> i mean, i think that was the other part of our report today. we are looking at the potential for model to. one of the things that is really concerning to me is that it's different from other lunches. this is a mass-market price suv . that's going to be very tough to do. actually, if you go to an internal combustion engine, a compact vehicle today, they are not very profitable. a powertrain you're probably starting off at a losing point.

you are really then betting on this unboxed production, which is a new manufacturing methodology they plan on launching with the model two. it's a bit of a wildcard. it has never been done before. most of those benefits need to come through to get this to levels we are sitting on the card table. >> what is unboxed production mean? i wasn't sure what it meant. >> it's a new term. no one has done before. the idea is that it's a change in the entire assembly line. from experts we talked to they're trying to eliminate all the next and automate as much as possible. the vehicle one through one line, it will be assembled at different subcomponents and come together at the end. this enables one of the potential benefits may be sugar but more throughput through the paint shop, which is the bottleneck today. but also, you could probably automate more along the line and illuminate some of the manual inputs. it's supposed to improve your efficiency. what we found in our report is that there is probably between labor and fixed costs that are

absorbed of the vehicle, probably $9000-$10,000. car. if you could double that there's like $4000-$5000 and benefit. need most of that benefit to get model 2 profitability, given the powertrain plus you will be adding. >> it's phil here. i'm curious, when you look at all of the headwinds, not just for tesla, but for electric vehicles overall, what you believe is the biggest one right now? is it the fact that we are seeing of models at the lower price points that would drive sales? is it the concerns about range adoption or range anxiety, charger anxiety that is out there? what do you think is the number one headway? >> i think, number one, pricing. i think it's just the price. also for suvs too. i'm not sure a small vehicle addresses that for what americans want. people want more affordable ev

and it's always the charging. the one thing we talk about in the industry and one reason we are cautious, and the detroit three as well are cautious, is the fact that there is still regulations coming. the industry will be a tough spot. the auto makers are going to need to sell more ev to hit those standards, which means everyone is going to be forcing these vehicles into the market, which is never good for profitability when that happens. >> i'm just curious, when they have price cuts is tesla concerned, maybe, phil this might be a question for you, is tesla concerned at all about brand erosion? that whole idea of tesla as a luxury car gets off that if everybody can afford it. >> i think that's absolutely a problem. with the price cuts the residual impact is the residuals on the car have come down. that's going to upset your prior customers that lost value in their car, which is one of the biggest cost of ownership, depreciation. and it does impact the brand image tesla if you read what they say, they do sort of want to make ev mass-market available. this is part of their mission, but it's a concern to erode

profitability if you move luxury to mass-market. pickups and luxury are probably half of the auto profit landscape, but less than 20% of the vehicles. when you're talking that you're talking a much smaller profit pool. >> let's sum it up. you call this a growth company with no growth. it has a growth multiple and then some. but not the kind of growth in market share or in unit sales that you would expect from a growth company.>> well, over the next years i think we have had a point where it's slowing down. i think the company itself will admit they are any product low i do think the growth in the next couple of years be flat this year, down next year. earnings growth will not be good because of the pricing and the margaret -- margaret -- market progression. this is not a growth company, from my perspective.. thank you for sharing your perspective with us.

i wanted to ask about another company that you follow. this one rather troubled. look at boeing. it's got a similar stock trajectory to tesla. down 30% so far this year.>> yeah. the pressure on boeing is far greater, because of the concerns , in terms of manufacturing, investigations a number of problems that is not going to be able to clear up any time soon. it's going to take some time to clear these up. in regards to what's happening with the 737 max, we know there are three investigations, the faa, the doj and the ntsb with regard to the ntsb, the door plug work video, according to a letter sent from the ntsb to senators, which was reported within the last couple of hours, they are looking for the video of the work that was done on a plane in question when it was in the renton factory. and the video, according to the ntsb letter, was overwritten. in other words, it's gone. there is that the security cam video to show you who was working on that door plug remember, the ntsb has said

august 6th and seventh is the dates when it will be holding door plug hearings. that's when we are likely to see more questions, likely more revelations, in terms of what the ntsb has learned from its investigation. in terms of the max 9 incident and alaska airlines, this is a story that got a lot of attention late yesterday and early this morning. alaska saying that yes, the plane was scheduled to have maintenance for the day of the flight. it was doing three flights that day and then was going into maintenance. it was on the second flight when the door plug was blown out . engineers had noted warning lights. that's when they said it was time to bring the plane in for some checks. remember, this plane just started flying in november. that would have been much sooner than normal. alaska's safety chief, by the way, stands by the decision, in terms of thing we will do these flights and then the maintenance check. i know hindsight is 2020. there will be people who say, look what happened. you should have brought it in sooner. but alaska says, because of the way that they look at incidents or look at potential problems,

they felt it was the right decision to continue flying. look at shares of boeing and keep in mind that the company yesterday said its planning on doing its own internal safety audit this month, in addition to what we saw from the faa as boeing tries to step up its efforts to improve the quality controls at the renton plant. >> you mentioned warning lights on that 737 max. what were the warning lights, did they pertain to the door plug? >> a couple of times pressurization lights went off or were shown. remember, i get this question from people and they say wouldn't they immediately have been able to find out that the door plug was missing bolts if they didn't it -- if they did an inspection? it depends on what they do and what they look at. there have been some reports that you could have seen a shifting of the door plug from the outside. clearly, if they were doing a maintenance check that would have seen that if there was a shift in the door and it wasn't flush with the rest of the fuselage. from the inside, keep in mind, you don't see the fuselage.

it's not like you can walk in and say, well, there's no bolts here. you have to take off that panel to do those inspections. and whether or not they would have caught that in a maintenance check, that remains to be seen. the pressurization lights is one of the reasons they said, okay, let's bring this in and do a check.? what about this terrifying story, i think it was on a 787, it could have been a 777 that was circulating yesterday? a plane and ominously began a nosedive. the pilot couldn't control it and then it came back on. this is another boeing point thing. >> they are doing an investigation there. that brings up the question whether or not the software had been restarted regularly. that is purely conjecture regarding that software. so, the investigation will determine exactly what happened with that flight. that was a flight going, i believe, from australia to auckland, new zealand, when the incident took place. >> thank you very much. appreciate it. coming up, the nvidia ecosystem is growing and benefiting both public and

private companies. details intech check. we had to a quick break and a quick power check on the positive side of the big board. freeport mac moran on the positive. dollar tree in the negative, shutting down stores. we will be right back. they're waiting for you. hey, do you have a second? they're all expecting more. more efficiency. more benefits. more growth. when you realize you can give your people everything, and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com

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access to gpu's, laying on efficiency entities to build a consumer models that we know. some of the ones like chatgpt and character a.i. it's rapidly expanding and leading to talk about bubble, which has been around here in these parts in the bay area for some time now. together a.i., for example, doubled its valuation in less than six months. there are other startups that have raised hundreds of millions of dollars. $1 billion plus evaluation with little to no revenue. for now at least as and video thrives so does this in ecosystem. that will be on full display next week at dtc, which some are calling the woodstock of a.i. or the new wwdc, that's apple's big event, one of the biggest events intech over the last 10 years. anyone who is anyone in the tech space will be there. we will hear from open a.i., anthropic, x a.i., cohere, character a.i. , many, many more. it's clear that dtc is now about so much more than just

nvidia gp. it's about that ecosystem both public and private that nvidia has helped to create. >> let's just say if it's the talk of a.i. let's hope they have bathrooms. just a thought there. thank you very much. >> i want to rebrand myself as tyler a.i. i think that's a good idea. >> anything with a.i. works well. >> it just works. >> you could probably do that using some of the products right now. >> at a new headshot to go along with it. a new headshot. tyler a.i. the house passing a bill that could lead to a ban of tik tok despite nearly being a unanimous issue republicans are now finding himself scott in the midst of an internal struggle is two major -- major gop donors take up opposite sides of the issue and threatened pull donations. that story iahd.s ea

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circle welcome back to power lunch. bond yields rising today as the markets do with impatient, which is moderating. but not back to the fence to present target. rick santelli joins us from chicago.>> indeed, that word moderating certainly seemed to get many traders aside

yesterday, because deals were -- yields reversed higher. let's start at the beginning. 30 year bond option, the last of 117 billion in coupon supply in today's reopen, 22,000,000,030 years what the best-of-breed. if you look at the chart you can clearly see at one caucasian at the results of the auction hitting the wires interest rates fell. but they didn't last long. if you look at twos, tens and 30s on one chart, we are steer casing, which means all maturities, twos through 30s, our trading or have traded at a higher yield than yesterday, or a lower price than yesterday. that, of course, is building on a reversal. if you look at a chart starting in early february what you will see on twos and tens is that basically each of those maturities last friday was hovering either at or slightly above a one-month low yield clothes. boy, have we reversed. consider this, the high yield clothes for 2024 four twos is

for 72. for tens 432. you can see we are starting to be closer. twos are getting closer faster. that's results of yesterday's cpi. tomorrow we have not only retail sales, not only continuing claims, but we have the cousin to cpi, wholesale former producer price index. let's see if tomorrow also gives the markets a little bit of a jolt, because everybody is a pretty pacified with regard to inflation, except for the inflation numbers. tyler, back to you.>> thank you very much. for months proper breaking out. best day since 2022. copper. it has been a while since we hit copper. >> we have not hit copper in a while. >> today it's at an 11 month high best day since november of 2022. that comes after chinese smelters reportedly are cutting their output, so that can tighten the markets, since they are then turning less. china is a big deal in terms of the smelters.

if they cut their output, collectively cut it, we could see prices go back up. we have this chart from bt i.d., which says it's a significant breakout on copper. you can see that range we are talking about. now getting out of that resistance level. on the fundamental side td securities said things look pretty good for some time. but that the commodity price just hasn't been reflecting that but if we look longer-term on the futures curb it does point to this tightening fundamental landscape. that is pushing up the copper miners today. the cto x, which tracks the space there, there it is, up about 6.3%. in terms of individual movers, we've got freeport, southern copper, and glenn court on the move there. southern copper up 11%. natalie gray from stone next told me that she thinks today's move is just a knee-jerk reaction and that it's great of chinese smelters say they're going to cut their production, but we have to see actual confirmation and follow-through. in order for prices to change.

>> smart -- -- smelters aren't smelting. what about demand? >> demand has been pretty solid. it is why people track the fundamentals say that. of course, it's tied to the economy that's why it's called dr. copper. in places like china we haven't seen demand is robust there. we have to look at where the chinese government is sending our stimulus. one thing their court -- focusing on our completions. that is boosted demand for copper. we also heard from the freeport ceo her earlier this year told cnbc that the man from green energy actually surpassed weakness that they saw in the property market, because copper is key to the electrification story. it's used in wires, transmission line, ev that all the peduncle copper. >> thank you very much. let's get to julie for his cnbc news update. the hamas run health ministry says five people died in a strike on a few distribution center in gaza today. one of the victims was

reportedly united nations relief worker agency staff are. agency officials said dozens of people were working in the warehouse when it was hit israeli military has not commented on the reports. the federal trade commission is sending refunds to nearly 28,000 people who fell victim to student loan schemes. according to the agency the scammers went by several names, including mission hills federal and federal direct group. the fcc says a leeward people with fake loan forgiveness claims and pocketed their money. refunds will total more than $4 million. neil young announced today his musical return to spotify. he pulled his catalog two years ago in protest of the streaming giants exclusive deal with joe rogan. famed musician said rogan's podcast read this information about covid-19 and the covid-19 vaccine's. the singer says he can't afford to boycott ever since, every service, if he wants his music to be heard.

back over to you. the dow is higher today. let's take a look right now. you can see that it's up about one third of a percent. the s&p 500 just hanging onto the green. but barely. barely. the nasdaq is off by one third of a percent. mixed markets today, more on them when we return. wall street forecasts over 100 billion in sales for anti-obesity drugs known as glp -1.

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1-800-217-3217. that's 1-800-217-3217. welcome back to power lunch. stocks remain mixed today. that i want track to be higher for the fifth time in the last six sessions, but not by much right now. not of us much as the dow today. the s&p basically flat right now. the nasdaq and s&p higher by 8% so far this year. should investors stick with u.s. are look for opportunity elsewhere? let's bring in, -- courtney garcia, senior wealth adviser with pain capital. good to see you again. how are you doing? >> great. thanks for having me. >> let's talk about your predilection or your leaning toward international or emerging-market equities. what do you see there that persuade you that they may be a place to put money now?>> we

remain with the idea that it has an important part of your portfolio. i what it said and leading board for that than the u.s., since we still have more u.s. exposure than em, but i wanted as part of your portfolio. you're really starting to see this intimate shift their. if you look at china, for example, that's really what people think of when they think of emerging markets. the tech in china is off 20% from its lows, meaning it's officially in bull market territory. morgan stanley did just come out to show that investment managers are less bearish, less customers -- less pessimistic on it. they have been under invested in china. at a certain point in time i think we will see more money going there, which may to be happening. you want to make sure your position there before that lake those higher. we want to in emerging markets as a whole. vanguard emerging market index is a way to look at that. the em is a high shares version of that. china is about a fourth of that to also have india as the other big country exposure that's going to be in there.

we want to make sure you have that as part of your portfolio. >> you kind of answered one of my questions, which is a better to play a fund here or to go and try topick individual stocks? i guess you're interested with a fund. there is no typical investor, i realize that. what would be a sensible percentage and wants portfolio for, let's say, a typical investor for emerging markets? is it 10%, 25%? what would you say? >> it completely depends on the investor and the time horizon. i would say for most of our clients who are long-term investors, we don't have any more than about 10% of our equity exposure there. it's enough to take advantage of that, but not so much that if it's political unrest in china you don't want to drag you down either. it's going to be longer-term, absolutely. >> is there ways to pay --- play emerging markets without china? >> there are. i shares has an emerging markets

x china fun. the idea of emerging markets a lot of people are on board with, but the political risk in china is keeping people out of that, which i do think is contrary and a good sign that people are so nervous with it. there is absolutely ways that you can get into it without china and still play the broader em markets. >> are the particular regions of the world, you mentioned china, but india, brazil, are there other regions you think are really poised for investors to see outsized returns on their investments? >> gal. india is easily the other big one. they just surpassed try to and population producing companies really starting to turn their focus there. whether they are looking at moving manufacturing processes there, but also just realizing how big of a population boost that's going to be. i think it's probably going to be the next thing we are talking about over the next five or 10 years. probably india more so than china. absolutely. if you're using those funds that gets you the next second larger exposure, almost as much as china, just a few percentage points less prince. let's bring it back to the u.s.

healthcare rates. tell us about that. >> yeah. which is interesting. a lot of people have been very negative on real estate, because with interest rates being high-end any potential issues with those upcoming redoing of the could be potential issues there. a lot of that has been priced in and of interest rates come down you will see a lot of relief there. healthcare, which we talked a lot about, does come with real estate exposure. that's why healthcare rates are actually interestingly enough one of the highest sectors of earnings growth when you look at 2025. absolutely something you want to make sure you are forward- looking there. thank you for the advice. appreciate the perspective. >> thanks for having me, as always. tik tok tug-of-war. the house just passed a bill that could ban gen z's favorite social media site. donald trump says that's no longer the right call. the former presidents 180 cost his campaign big-time? we will discuss wind power lunch returns.

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welcome back, everybody. the house passing a bill which has the potential to lead to a total ban tik tok here in the united states. the actions seems to carry a decent amount of bipartisan support. we are seeing division spark among republican donors. two in particular. on one side supporting the ban you have tech vc keith rob boy who has given more than $3 million to preferred gop candidates in the 2024 cycle. most recently, a $500,000 donation to the congressional leadership fund before the vote earlier today he threatened to pull funding to any republican who voted against the bill. and then on the other side you have billionaire and susquehanna cofounder, jeff yass opposing the ban. his firm on a 50% stake in bytedance. he has donated about $47 million during the 2022 midterms. let's bring in cnbc.com political finance reporter

brian schwartz to discuss this. whether you have presidential campaigns getting donations may seem to be like when you come down here on the side of tik tok or against them? right? >> that's right. it really has become, anyway, this battle of the billionaires. jeff yass is a bytedance investor, historically. he has been giving millions of dollars to a group called the club for growth, which is subsequently pushing back on this idea on a tik tok band. which was anyway featured in this recently passed house bill. and then on the other hand, you have somebody like keith who is telling us that he is not going to be giving to republicans who voted no on this bill that passed today. this is a kind of dynamic that we are seeing here in the business community. and also something wells else we didn't mention. elon musk has been pushing back on this bill on x, a platform he owns.

this is leaders are coming out in force with their money or their stances on social media. either supporting this idea or pushing back on it a little bit. >> it could be that elon musk these jeopardy to his venture, to x, if congress decides to start acting against tik tok. like of tik tok goes then who else? how do you think that the people who are running again for office or running in the first place, how do they manage both to need the donations coming in, but they also need the votes. everybody wants more younger voters to go to the polls and be casting their ballots. >> i think that's what's going to be talked about when this bill actually gets brought up to be discussed in the senate i think that's really going to be a focus from senator chuck schumer, who of course, is the majority leader in the senate even maybe mitch mcconnell, the model -- the minority leader. this will really be a focal point for some. democrats who are on the fence about this. there are republicans who use tik tok. to be fair, even president biden's campaign uses tik tok.

that is a connection with young voters. that app is really easily used to connect with young voters, so it's a great question. i think that's what's going to be debated by senate lawmakers as this gets debated in the senate. >> yass wants to protect tik tok. do we know whether yass has been a donor to mr. trump or mr. trump's pack or whether he has been in touch with mr. trump to push his position and protection of tik tok? >> i don't think he has necessarily given to donna trump's pack yet. there is no indication he is going to give. but the two did have a conversation, i believe it was earlier this month, at a onor r group opposing this tik tok bill. the people that are close to jeff yass tell me that conversation didn't really focus on tictac at all. it focus on education related matters. donald trump actually told us in his interview on cnbc.

there's a real question now asked whether this connection, this parent connection between trump and yass will lead to any money. it's still very unclear if that's actually going to happen , if money is going to go from yass to trump as a go through this debate about whether tik tok should exist in its current form his >> house fundraising going so far for trump? there's a lot of legal problems, a lot of legal hot water. there are advances there, but has a slow down from past campaigns of president trump? >> that's a good question. i think that we are going to have to wait and see. from what i'm hearing there is this effort by the trump campaign, and i believe donald trump himself, to really in some of these big-money donors, these wealthier people that were either on the sideline of those past primaries that just ended with nikki haley dropping out or who were in fact supporting haley. this is tug-of-war going on between the trump world and the biden world to bring in donors who were supporting nikki haley into either of those two camps.

the money, i think, is going to start flowing from both sides. very soon. but trump also has this other scenario which is the legal bill situation. part of each donation that goes to a joint fundraising committee helps the campaign, the trump campaign. it also goes to a pack that is spending on donald trump's legal bills. the question i have is, how much money really can be is actually going to be used by the campaign versus paying for trump's legal bills as he goes up against biden in the general election? >> do you have any indication whether those big-money voters that have ben -- backing nikki haley have decided they are going to back either trump or biden? >> i think there is a movement by some, i will put it this way, to go toward joe biden. i'm very confident in that i think there's also some people who are wavering on what to do here, who were supporting nikki haley. there are some who are thinking let's go help donald trump, maybe, but i haven't heard many commitments from that side to go help trump. and then there

are something i'm not going to help either of these candidates, i'm going to focus on helping republicans in congress. >> going back to tik tok for a minutes and all of those people, especially young people, who are on tik tok, is there any indication that fundraising efforts, using tik tok and putting content out there for users of tik tok is successful? is it a successful way to fund raise? >> i'm not sure if it's a successful way to fund raise. i think there's something to this idea of using the platform to connect with younger voters. i think that, i don't have any data to back up that tik tok is some sort of boom for fundraising, but of course, if you put out an ad on tictac -- tik tok and you have somebody that's younger, the 18 and above, who can give, i think there's going to be some entry to give to a campaign trying to raise that platform his >> we saw with donald trump and barack obama in those campaigns how much small donors matter when collectively they are

engaged in a campaign. >> that's right. the small dollar donors for donald trump at the end of last year, this is a critical time and we don't know yet what is happening this year so far, we haven't had the data backup, but the end of last year donald trump was struggling with small dollar donors compared to 2019, the year before the 2020 election. down significantly. we have been reporting on that. trump is going to have to do two things at oncepick one, he's going to have to corral some of these wealthier donors back into the camp i believe he's trying and in some cases may be successful and in some cases not. two, he's going to have to rebuild that small dollar donor bay. something he hasn't had, in part because some of the money is going to pay for his legal bills. >> a quick answer here. what happens next with this tik tok bill? he goes to the senate. what will happen there and if it passes there what will the white house do? >> the white house is going to sign this bill if it passes the senate. i give this a 50-50 shot at passing the senate at this

time. >> brian schwartz. still ahead, piper sandler just screened 1000 stocks to find the best buys of the month. the best of the best. we share the stories of some of our newly named cnbc changemakers. an annual list of 50 women innovating and transforming business. here's the lead ceo and cofounder, jacqueline reese's. >> as someone who is a change maker it means someone who is pushing the boundaries of innovation. changing the way things work and having a new vision for how business should be done around the world. i feel like i operate with grace, humility, with execution, with grit i'm not sure that's something that can be defined by gender. i think as a fema leader more than anythg want people to look at me and say leadership, different than maybe they expected.

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welcome back to power lunch. it time for a special edition of three stock lunch. piper sandler is up for their triple stock report for the

month of march. today we are covering a few names they would consider to be best of the best. joining us is jason glaser, the head of product management at piper sandler. it's great to have you on. first up, we have crocs shares up more than 37% since the start of the year. piper considers it a high conviction it is really about newness and innovation. what we are seeing in the consumer is brands that have fresh new products that are winning. full price, less discounting, better for gross margin. to chile crocs brand is what is leading the charge. they have new product coming. they have been outperforming on the sales side. they are adding height, color, more sandals. they are still keeping the molded form we are all familiar with. importantly, they are going in

asia, india, southeast asia and china. importantly, the stock is up a lot this year but it had a tough time. but hey dude acquisition, it finally seems like inventory has been clearing from the channel. more newness, or product innovation. they are expanding their sneaker line, their boot line all under $100. >> you can never have too many crocs, especially in a world where it is at leisure and still pretty casual. and hey dude again is doing a better job again with adding height, segmenting the market better. for us, a stock set up to beat the rays. the doubters will be surprised. i think it set up to be a winner. >> hey dude, what do you think

of microsoft? >> funny, i like that. microsoft has been the poster child for ai. i think the thing we would say is do not sleep on the club. it is staggering how big the cloud business is. we think -- can get to 95 billion dollars in two years. microsoft 365 which includes copilot can get to about $50 billion and in about three years, the entire cloud business can be $200 billion in revenue. the other part, the non-cloud business. windows, now -- that has easy comps this year. almost half their business can really accelerate. yes, i has been the story -- a i has been the story but only 2% of revenues with microsoft., soft fits the bill, it is owning a stock with growth, high returns, cash flow, high yield. a terrific set up.

>> you think it is a diversified portfolio in one stock. what about -- energy. the only energy name on the list. why is it pedal to the metal. >> valero is the poster child for refining stocks. large cap, the best assets, the best operators. they are specifically set up to benefit from the strength we are seeing in gulf coast margins which is really -- crude. it continues to stay tight, the supply coming on this year if all of it, about 1 million four barrel supply barely keeps up with demand. the ev has not killed gasoline

demand. if anything, the market will stay tighter than people think. this is a cash flow machine benefiting. got the lead -- gasoline drawdown was strong today. the margins are leading the refinery complex and they are best positioned to benefit from that. >> jason glaser, thank you. we appreciate you having me. rylee! from rylee's realty!

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2:15 left in the program. let's get right to the stories. let start with shares of dollar tree down 14%. we announced it earlier in the program after the struggling discount retailer said would shut nearly 1000 of its family dollar stores. the ceo said our biggest problem now is getting enough merchandise into the stores fast enough so the consumer can respond. there you go. dollar tree. down almost 15% today. we have new information in the investigation into batting irregularities in the temple versus alabama birmingham game last week. multiple sports book reported unusual activity at about the same time in the run-up to the game. for instance, a player trying to make an unusually large at a

retail location of one of the nation's leading sports book. a vegas sports book already changed. mgm sports book in atlantic city actually took the game off the board according to its director. the signs seem to indicate, coordinated activity. although the investigation, we're told, is still ongoing. i have been told the fbi has been brought in. we are reaching out to them for confirmation. but one highly placed industry insider told me something here stinks. >> you have a spread that -- shortly before the game in multiple locations at roughly the same time. this is because someone is putting a big that on uab? >> that can happen, if you have a -- come in and make a big that, it will move the line but it is easily explainable. in this case, there was no immediately apparent explanation for why the line

moves. what i was told when you have these almost professional gamblers were not following the movement of the line and they are not heading when the line changes, something is on. thank you for watching our lunch. closing bell starts now. welcome to closing bell. we are live from the new york stock exchange. we are beginning with stocks at record highs and what could keep the rally going. this is a big question we will ask our experts coming up. take a look at the scorecard. with 60 minutes to go in regulation, the broadening of market is well on display. the dow outperforming -- tech taking a breather again. in video, lower even as her firm raise