and mr. weiss, bring us home. >> you saw what rob did there. he got two "final trades" in. >> he snuck one in. >> archer daniels has been acting great, so a good way to play the commodities acting better with lower risk because they will restate. >> that does it for us. "the exchange" starts right now. have a great weekend. ♪ ♪ thank you very much. welcome, everybody, to "the exchange." i'm tyler mathisen. here's what's ahead on a busy hour. inflation concerns front and center this week, after both consumer and wholesale prices stayed hotter than expected. the consumer also showing signs of stability, pressuring stocks, and rate-sensitive technologies, shares in particular, propping up yields on bonds as well. the ten-year climbing more than 20 basis points since monday, now back above 4.3%. we'll dig into the implications

for investors and the fed ahead of next week's meeting. the national association of realtors is reaching a settlement that some experts say will change the real estate market as we know it. zillow shares plunging on the news. we have details on the big news out of the world of real estate. after an faa audit found multiple violations, deliveries disappointed and a mid-air mishap injured dozens, boeing shares having their worst week since that january door plug incident. but, one shareholder is sticking with the stock. he'll tell us why. but we begin with today's market action. for that, we go to dom chu for the numbers. >> we have a down market today. just about at session lows as we speak, with the dow down roughly call it 280 points a t this point, down about three quarters of 1%. the broader s&p 500 currently is a hair above 5100. down about 45 points. that represents session lows off

about more than almost one full percent. at the highs, we were still down, but only a modest 14 points. so an acceleration, if you will, into this mid afternoon trade. the nasdaq, down about 1.25%, down to 15,931. speaking of that tech trade, tyler mentioned rising interest rates, and it's been a record run for chip stocks. so maybe we're taking a breather. but couple that with nvidia moving down off the record highs this week. what you get is the vanek semiconductor etf. you can see this pullback here. it's having a down week, but in context, a very big run for this chip stock etf, now pulling back from some of the highs. rates a big part of that story. and then one other stock to watch is something that's been a bit of a proxy. maybe not as much for ai as nvidia has been, but adobe, the creative software company, down to about $489 a share, down 14%.

generally, good quarterly results, but the outlook may be more disappointing and may be showing that its ai products are starting to slow down. still growing, but just not by as fast as they had been in the past. so keep an eye on adobe, down $82 a share, 14%. back over to you. >> thank you very much, dom chu. less than a week away now there that next fed meeting, and we could be on the brink of a big change in the rate cut timeline and magnitude. steve liesman here to explain. hey, steve. >> hey, tyler. after two months of inflation reports making little progress towards the fed's goals, there's risk next week that those projections for their economic and rate outlooks that they forecast fewer rate cuts. the forecast in december was gdp of 1.4%. core pce, 2.4%. and the fed funds rate at 4.6 peshz. that was the fed's projection or

three 25 basis point cuts. the orange number there in the middle there, at 4.6 or three cuts. it's just two of the 19 officials decided to cut only twice. the median moves to the right there, which is essentially two rate cuts. for the fed, it comes down to a question of how to think about the past couple of months of inflation, are they a sign of a stall in the progress or just noise? is the progress expected for this year delayed perhaps into next year, which would delay rate cuts? rsm says -- is >> the future market began the year looking for 160 basis points bringing the rate down to 3.8. that's gone away.

now it's just 80 basis points built in, or right about where the fed is right now. so the question for next week, whether the fed moves that forecast, markets have to price in the risk about when the fed cuts, and also, tyler, by how much. >> explain to the uninitiated like me what the dot plot really is, and what it shows? >> so, it's an important question and an important distinction because the dot plot are -- is the forecast for the fed's outlook. each fed member's outlook for this year, next year, and 2026 and the long run. what it is not is a policy promise from the committee. so 19 get together and come up with a rate, and the problem with the dots, tyler, is that everybody treats them like it's a policy, like the fed is aiming for 4.6. it's not accurate. 19 separate forecasts come up with a median of 4.6, not the

committee as a matter of a decision that's made by the committee. >> so it's a forecast of where interest rates will be, right? >> right. it's a median forecast of 19 different officials. >> steve, stick around as we bring in your friend and mine, peter bookvar, investment officer and a cnbc contributor. digest what steve was just talking about, particularly those inflation numbers that feel hotter than expected and what that might imply for what the fed will do. >> it's complicating their decision making. powell, based on his testimony just last week, seems to want to cut. but he wants to do it slowly and carefully, as he said. i think if you focus on the employment side, they see the unemployment rate about a two-year high. on the other hand, inflation is remaining sticky. i think the one flaw in powell's

thinking, he said we don't need to wait until inflation gets back to 2 to start cutting. but if there is a lesson from the '70s, getting inflation down to the 2 range is one thing, keeping it there is another. so imagine they cut before they get to 2, then inflation heads back up. then he's stuck. the fed is trained to either cutting or hike, and there's no dine dine damsm in between. >> steve, react there. >> peter and i share an affinity from the '70s, especially the music and the grateful dead shows we might have gone to. i don't get quite the lesson from the '70s that people have glomed onto that historical period. what happens in the '70s is not

akin to what's happening right now. i also think there's some interesting things happening now that might make things very different. the productivity story, for example. i do think the fed has a little room to cut, and what is interesting about what peter said is this idea of it being binary, cutting or not. jefferson, the vice chair, came forward with an idea that maybe there's a tweaking modality to the fed, which is we do a couple and then hang out for maybe a long time and brought forward, peter, that 1995 analog, which might be more along the line. and i bring that up, because jefferson brought it up, because at the same time, there was also a productivity surge around then. >> jefferson hamilton, washington, peter, what do you think about that idea that maybe the fed cuts and just holds there to wait and see what inflation does? >> i think steve's right. and i do think that's what they end up doing. i think powell will want to cut

or tweak as far away from the election as possible. and that's why i think june is very much in play. but the interesting thing here is that we have inflation expectations two years, five years out, that are one-year highs. commodity prices that are bubbling again. the disinflation on the good side may be ending, but on the flip side, services inflation should continue to moderate as slower rental growths shows up in the data. but, again, i do think that they're going to tweak and really take a pause. putting that aside, though, i really want to hear what they have to say about the balance sheet. i think qt does begin to really matter in terms of its impact on liquidity and asset prices as it gets closer to the $100 to $200 billion range. >> peter, were you surprised that inflation came in a little hotter, a little stickier than

some people expected? that's number one. and number two, is it any evidence -- is the fed winning the war on inflation or not? >> well, they're winning the trajectory war of inflation, and that is, it's come down. but there's still a lot of friction within the inflation stats that are going to make it very difficult for it to just magically go to 2%, and also magically stay at 2%. is it going to go up, down, and just flat line at 2%? i think that's a rather heroic assumption. if you look at the next couple of years out, i mentioned rental prices as negatively influencing inflation over the rest of the year. 2025, 2026, because the lack of supply in the outyears, inflation can hem right back up again. so we need to expect inflation volatility, rather than this magic 2% and stay there type scenario. >> steve, let me conclude with you, if i might.

for much of the preceding decade, from the financial crisis on, the concern was that inflation was very, very low, right? at least it was one of the concerns. it was under 2% for much of that time. what if inflation runs a little bit above 2%, could you make the argument that if you look at the long-term view, the median inflation, the mid point there, is something around 2%, even if today's inflation is a little higher than what it was or what they would ideally like it to be? >> so tyler, there are some real smart folks who think that inflation number is at least some part of it, is something that's given to the fed or the economy that they can't control. inflation may just want to hang around 2.5% to 3% and the fed may not be able to do anything about that, because that's the runway where inflation is going to be. i don't think the fed accepts that. then you start to worry about,

shakes spear said "my kingdom for a horse," which is, would you sacrifice the economy and the growth and the high unemployment rate and create a recession because you're not satisfied with 2.5% or 2.8% and it's got to be 2%? >> it might have been richard iii. >> yeah, i was going to say henry. >> steve, thanks. >> i think you're right. >> peter, appreciate. a horse, a horse, my kingdom for a horse. let's turn to the markets now, because barring a change in fed sentiment, my next guest sees more room for stocks to run, but he says we're due for a pullback. joining us now is andrew simmons. nice to have you with us. what do you think about whether the market can continue -- stocks can continue to move up, absent the kind of rate cutting sort of plan that we've been

expecting, six cuts this year? can the market continue to make headway if the rate cuts are less frequent and more modest? >> i do, primarily because if the fed says hey, we can be patient, they're implicitly sending a signal that they're comfortable with the economy. and if they're comfortable with the economy, that leads me to believe that earnings estimates for this year or next year, because again, on december 31st this year, we'll be focused on next year's earnings, that increases the likelihood that those numbers will come through. so i'm not in the camp that thinks the fed needs to cut for the stock market to do well, because if the fed -- they're not going to do this, but if the fed says we're going to cut tomorrow, i would start to worry about earnings estimates. that's not the case. >> you cited in my notes a very interesting pattern historically about what happens when the

stock market begins the year, as it has, with two months of very nice gains. tell us what the numbers say. >> well, if you have january, february that are up over 6%, the average return for the market is from march on, and now they're roughly 12%. the only down year that, you know, was 1987. every other year the market has been up. and tyler, the number one question that i get from investors is, when is a pullback coming? i missed out or was underinvested last year. look, the market is up 25% from october. we are due for a pullback, but i think the view is, pullbacks are an opportunity to increase exposure, because there's so much money in the money markets. j you're talking a pullback of 5%, 10% or easter? >> 5% pullbacks happen every

three to four months. 10% pull backs happen once a year. i think we're going to get a bigger pullback this summer, but i expect the market will be higher. >> when people say things like, we're due for a pullback, it's like, we are due for rain. it may rain or not. >> that's right. so the problem is the old famous peter lynch saying more money is lost waiting for a pullback than actually being invested in a pullback. in other words, people have been sitting on the sidelines and they're missing out. so i don't want to misconstrue that i think the market will be higher by year end. i'm not sure that this summer will be a pullback, but i know that -- really last year, it's been an easy time for equities. the market has gone straight up

if you were invested. a lot of people weren't. >> i want to get to a couple of stocks that you like and comment on the idea that this is the year for stock pickers, where it may be harder for you to make money if all you want to do is track an index. so why don't you talk about that, and also your three picks, google, united reynolds and progressive. >> if you think about last year, there were seven stocks that comprised almost very high percentage of the return. and as an active manager, it's very hard to own all seven of those, because there are big weightings in the indeciindecis index, and that's problematic. so some of those stocks, those mag seven are working this year. and some of them are not. so picking and choosing the winners, and avoiding the

losers, is easier than just owning all seven. so i think that's a big reason. but i think the other thing that's going on here is look what's working today. materials, industrial, emergency. look what's worked in the last month. those groups have actually outperformed, because what hand last year is i saw a lot of cyclical stocks report very good quarters, but their stocks weren't going anywhere, because everyone was told a recession was around the corner. and now, these companies are continuing to report good numbers, and with the thought that maybe a recession isn't around the corner, they're starting to look. so that offers an opportunity to invest beyond just seven mag stocks. >> andrew, we'll leave it there. thank you very much. good to see you. have a great weekend. all righty. coming up, the national association of realtors agreed to change its commission rules in a multimillion dollar settlement with home sellers. we'll look at the ripple effects across the real estate land scape, next. plus, boeing is by far the

worst name in the dow this year. down 30% year-to-date. but is the bottom just around the corner? we'll ask one boeing shareholder why he's sticking with the stock when "the exchange" returns 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. 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. (♪♪) my name is oluseyi get iphone 15 pro on us. and some of my favorite moments throughout my life are watching sports with my dad. now, i work at comcast

as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. welcome back to "the exchange." zillow shares are plunging after a settlement from home sellers that could result in commissions dropping dramatically. is 6% out of here, di? >> it may be. the national association of realtors agreed to pay $418 million in damages to settle anti-trust lawsuits over broker commissions. that will go first to pay the plaintiff lawyer fees and then the class. the settlement makes clear that

nar is denying any wrong doing. the lawsuits argued that nar violated anti-trust laws by setting certain requirements that led to a standard commission. the settlement bans the nar from making any set rules that would let a seller's agent compensate for a buyers agent. the norm was 5% to 6% in commission. but the nar denied saying there are set commissions, but this means that the agent market will now get much more competitive, which could in turn lower commissions. that could, of course, have an affect on home prices. sellers and buyers generally factor in the cost of the commission, depending on the selling price. if they have to pay less commission, the seller could lower or the buyer could offer less. in addition, on the mls, the listing service for all homes, it says all fields that show broker compensation have to be wiped out. and there's also a ban on the

requirement that agents subscribe to mlss in the first place to get commissions. so this could have ramifications of membership to the nar, which is one of the most powerful lobbying organizations in the country. to get reaction, i would like to bring in the ceo of red fin, glenn, thanks for joining us. give me your thoughts on what this will mean going forward. >> well, red fin has advocated for 18 years for lower commissions. if this leads to lower commissions, where buyers decide how much to pay their agent, that is good news. there are many details we're trying to parse. it's 108 pages, just released this morning. but the fundamental issue around cooperation between the buyers and sellers agent on fees is one that we've been focused on for a long time. we think this can make a real difference in how this industry operates. >> now, red fin has benefited because you have a flat

commission that is lower, and that's how you market yourself, is that correct? if you bring everybody else down in that playing field, does red fin lose its edge? >> we want to say we're bringing people up. but yes, we have always offered consumers a better deal. we obviously believe when people decide how much they pay their own agent, they will be more price sensitive about it. we've already seen that with sellers. they are much more careful about how much they pay their own agent. those fees have come down from 3% to 2%. but buyers haven't had that same freedom. and now perhaps they will. it's still very much in dispute whether the sellment will bring that about. because some members of the industry are saying there will be other ways that sellers and buyers agents can cooperate. but just ending that one field in the mls should make a real difference.

>> will it make it more competitive, as if i'm a home seller, i can say i'm not going to take this agent unless you lower the commissions, and commissions could come so far down that it wouldn't be an agent's time. >> people want to tour homes listed by remax, redfin. but the buyers agent will have to talk to the buyer about what fee she will charge, and then that fee may be included in the offer, where the seller can say i'm not willing to pay that fee. that's coming out of my pocket. so therefore, just like any other term, the inspection, the price, when it closes, the buyers agent fee is up for grabs. that hasn't happened in my nearly 20 years in real estate. >> do you think this will lower home prices? >> i heard you say that, but i don't think so. i think the seller is always trying to get as much as they can. so my guess is that it will be

what the market can bear, and the seller just gets to keep more of that money. >> okay. glenn, thanks so much for joining us. tyler, back to you. >> thank you very much. it was also a big week for the builders, both the xhb home builder etf. lennar unable to hold on to gains, though, down more than 4% from the week. we'll get results from kb homes on the 20th. our next guest is bullish on the setup for builders. john, welcome. good to have you with us. >> hithanks for having me. >> you think the public builders will continue to have an outsized share of the home building marketplace. why do you think that? >> it's a good question. look, i think there's some very interesting dynamics in the industry, and it's not that different than what we saw last

year. there is just very little existing home inventory, under a million units should be double that. so to the extent that demand is out there, and demand is still really good, it has to be satisfied by going over the new construction market. now, within the new construction market, the builders call it 45% public share, the public builders i should say. they will continue to gain share for a number of reasons. one, they have size, scale advantages, which are very difficult to replicate by the small home builders. and they have the ability to offer financing. that may see affordability equation work for the buyer. that is difficult for the smaller builders to replicate and cannot be replicated by the existing home market. so it seems like a good market for share gains to continue. we're looking for 900 basis points of growth. >> that certainly is -- i guess what i'm hearing you say is that the capital that the public builders have at hand gives them

the power to finance and to buy land that smaller builders don't have, am i right? >> to finance the actual mortgage, correct. but you're right, in terms of procuring land, labor and materials, size and scale matter. if you're a trade, you want to work with a builder that will guarantee volume. if you buy lumber in bulk, you are getting discounts. if you buy appliances in bulk, you are getting discounts. that is the case on the land side. >> let's talk about the gains that you just mentioned about 900 basis points. 9% higher than the market generally in 2024. that would follow on major outperformance last year of about 13 percentage points for the home builders. why are you so confident? >> that's correct. i think that the big continue to get bigger here. i think we're going to see continued consolidation within the smaller builders because of this inability to compete with the larger scale builders.

this financing sort of advantage that we have in this market where rates are hovering around 7%, is something that shouldn't be underestimated. if you are buying from a public building, you're paying 5%, 5.5%, and that ability to finance has opened up to the window for a larger number of builders in an environment that we all know is constrained from an affordability standpoint. >> xhlb wednesday, all-time hig. kbh, 52-week high on wednesday. you don't think, as i understand it, this positive performance frr the home builders robs off or helps the building supply companies or the retailers, i suppose? >> we don't cover the retailers, but we do cover the building product companies. no, i think it does. now, maybe not to the same extent. i think that's the point you're

getting at. the public builders are exposed to 100% new construction. the suppliers, building product companies, are 30% exposed to new construction, maybe 60% to repair and remodel. repair and remodel is a little more tied to consumer, where there could be weakness. >> some of the building products companies, you have nor neutral ratings in that category. thank you for being with us, john. appreciate it. still ahead, it seems no industry is immune to artificial intelligence, but the fallout in hollywood goes far beyond replacing actors and writers, as demand for generative ai is expected to grow tenfold in less than ten years. we have the details and the jobs th clde stffte atou bmo aecd, ahead.

welcome back to "the exchange." i'm pippa stevens with your cnbc news update. work continues off the gaza coast today on a jetty to

receive humanitarian aid. in a video posted on x, world central kitchen founder jose andres said they hoped the dock would be ready to receive supplies, but recent bad weather delayed it. ngo open arms said this was the first ship to arrive and another ready to set sail from cyprus. lyft and uber plan to shut down operations in minneapolis starting in may. the news of the stoppage came as the city's council pushed through a measure that requires a minimum wage of nearly $16 per hour for drivers. lyft and uber said prices would double if they stay, and thousands of people would be out of work if they leave. three-time nfl defensive player of the year aaron donald will retire from the game. he shared the news today, after spending all ten years in the league with the los angeles rams, playing a mayor role in their defense in a super bowl victory in 2021. >> one of the great players.

next stop, canton ohio, the hall of fame. thank you very much. coming up, boeing is about to close out its worst workweek since january. we'll talk to a boeing shareholder that is standing by the manufacturer, call thing a adneeaion. glp-1 drugs used in weight loss treatments stand out as the biggest global blockbuster, but these treatments require cumbersome injections. with lexarias patented oral delivery technology, early studies suggest a better way. lexaria bioscience.

welcome back to "the exchange," everybody. boeing shares on pace, worst

week since that door plug incident back in january. down about 8% on the week after more negative headlines. "the new york times" reporting an faa audit of its 737 max production found dozens of issues, and there were two separate mid flight issues this week, one at united, another in chile. our next guest is sticking by the company. joining us now is tony bankcroft. bowing is his second largest holding in the aerospace and defense etf. good to have you with us. >> great to be back. >> you don't just study these planes, you have flown fa-18s when you were in the marine corps. so you know a little bit about it. >> a little bit. >> thank you for doing that, by the way. >> thank you. >> let's talk about boeing. are you concerned that its reputation over the past few years has been so seriously damaged that airlines may shy away from doing business with it? >> i think the big picture, in

regards to the faa audit that just came up, the big picture is if there were a real problem, obviously the faa would have shot down boeing, and that's not the case. i don't think -- i think the news was dated. they had already spoken to the faa about the audit, and they had a plan in place. i think it's more of a headline. i think the real news is, you know, administrator whitacre from the faa said in the next 30 days they are coming up with milestones with boeing to increase production rates. i think that's the material piece of data that i look at. >> we should look deeper than just the headlines, but the headline numbers were disturbing. they failed on 33 of 89 tests. the supplier, spirit aerosystems passed only 6 of 13 audits. so these numbers, when you look at them, the failures were -- i

don't mean to say not material, but not serious enough for the faa to swoop in and say, stop production. >> right. you know, again, i'm -- i wasn't privy to the actual not compliance issues, but from what i've been told, speaking with boeing, the majority, the vast majority of the noncompliance items were procedural in nature with mechanics and essentially how they -- the process which they put the aircraft together, maybe not just being in order. it seemed more of a granular issue than a system problem. >> mr. calhoun, the ceo of boeing, is he the right guy for the job right now? >> i think so. he's had to deal with a lot, and i think he's done a great job keeping boeing going in the right direction and keeping the 737 moving. >> does what has happened with the 737 line, which is their

main line, it is really the ball carrier for boeing. >> for sure. >> the 737 max 8, now the 737 max 9, they've had troubles. i now look when i'm making a reservation. am i going to be getting on a max 9 or not? my confidence is the consumer in boeing isn't what it was three years ago. >> right. let's put it this way, so the faa has the safest travel safety record in the world. the last 15 years, there hasn't been a fatality from a crash. 50% of the fleet, 50% of the weight of that record, that safety record is our boeing aircraft. 28%, 29% are airbus, and the rest are others. so, you know, i think if i were as a portfolio manager, if i were 50% of the weight of the best funds of alltime, i would

be happy with my performance. i think it's overlooked. i think boeing has had issues keeping the narrative, maybe. but as far as safety, obviously, the trade organizations for travel came out, they have come out and put out the data. last year was the safest year on record for commercial aviation. so i don't think the volatility and the issues going on right now, which are more headline grabbing, i think overall on the safety basis -- >> you also own spirit aerosystems, which is the fuselage maker. they were a part of boeing, boeing spun them out. there's now a relatively new ceo, who has a boeing pedigree in there. >> yes. >> spirit aerosystems, comfortable opening it? obviously, you do. >> yes. again, i think these issues, you

know, they're definitely serious with what happened on january 5th, it was a big issue. but i think it's something that will get worked out. they'll get process in place and get squared away. >> you're no stranger to wild stuff, landing jets on aircraft carriers at night. this jet that dove for thousands of feet, what do you think happened there? >> that's obviously very scary. but just reading -- negative g event like that is not fun. i've been in a plane with that kind of negative g, and it's dynamic. obviously i was strapped into an ejection seat, so it's a little different. it sounds like what happened, unfortunately, it was a crew member that sounds like they pushed a button and pushed a seat forward. ? >> the cockpit?

>> this is just from what i read, essentially there's a switch in the back of the 787 captain's chair and first officer chair that, it has a cover over it. you can remove the cover and l pressing it left pulls the seat out and then bring it forward. it sounds like a crew member was serving food in some sense and pushed the button and it hit a control. not good. >> not ood. dynamic was your word. tony bancroft, thank you very much. coming up, actors and writers can't be replaced by ai, but with new tech allowing the likes of text-to-video, we'll look at what ai anme lsz for rest of hollywood. that's next.

ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. welcome back to "the exchange." ai's use in hollywood productions was a key issue in last year's actor and writers strikes. the studios agreed not to use ai to replace them, but there's still room for ai in other aspects of production. >> reporter: hollywood studios

tested new ai tools to help cut costs and speed up work flow. after the fear of ai taking writers and actors jobs dragged out the strikes last year, the market for generative ai in media and entertainment is expected to grow from $1.7 billion this year to $11.5 billion by 2032. pica, which has raised $55 million, is an ai powered p platform can add ai and can generate audio for videos. a leader in this space, runway, is valued at $1.5 billion, with backing from google, nvidia, salesforce and others. it recently added features to give creators control over movements within shots, and to adjust the positioning of the camera in ai-generated video. >> you have a shot of something you have created, allowing you to control and define precisely,

almost at a pixle level, how you want that to be controlled or moved, and that's what this allow use to do. >> reporter: runway says story boards or art direction that would have taken weeks can now be made in minutes. it's not just video generation, studios are exploring all the ways to use ai, from summarizing scripts to designing sets or costumes, to editing and visual effects. new technology brings concerns. the union representing hollywood crews, is proposing protections for jobs that could be threatened by ai, and they're considering a strike. the sources at studios tell us they believe ai can create new jobs, to meet the need for 3-d rendering and props to achieve more sophisticated visual effects. one wild card here is openai, it's expected to launch publicly later this year, andit's unclear if it will become a game changer, but in the meantime,

our sources at independent production companies and the media giants say they are aware that certain jobs will likely go away, and it is certain they're worried about. >> how do the artists who actually shoot the movie, how do they feel about this? where maybe the business, the art of creating a movie now falls to people who are really computer folks opposed to filmmakers? >> i think right now, artists are thinking about these ai tools as just that, as tools. for a long time, we've had visual effects tools, different technologies that have been used by filmmakers over the years. right now, they see these as just additional tools to make them more realistic, more life like. i think that's the way they're approaching it for now. we haven't seen anyone imagine being able to replace actors with ai. now there are guard rails around that, due to the outcome of the strikes. i think it's about it rating and using these tools to make the

tools better. >> are the people behind you real or ai? they're real, right? >> right now, this is all real. we're in a real set. there's nothing ai generated around me. just not yet. >> they're not reacting, so they must not be listening. julia, thanks. coming up, one >> will that translate into big money for the social media giant? that is next when the exchange made returns. made returns. ♪ ♪ you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star!

be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i.

(impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo my name is oluseyi get your business online in minutes and some of my favorite moments throughout my life are watching sports with my dad.

now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. welcome back, everybody. a big week for social media as reddit readies. this is all with the tiktok bill. good to have you with us. let's talk about reddit. it feels as though this is been a bumpy path to an ipo for reddit, and a rather slow- moving one. am i right about that? >> reddit has gone through a

lot of phases. it is a pretty old company at this point. it is a mainstay for communication, people talking about all sorts of random, very random topics. it is very popular. it is a very old property, and a big one. >> has it ever made money? >> i actually don't know. that means a lot of things when you look at it. i don't actually know the answer if it is profitable at this moment are not. as you say, this is a mature property. is been around a long time. it has a strong following. why won't they have gone public sooner? and why in retrospect was this a mistake quick i would rgue

it is marginally started even as a business. being a really cool thing that some young kids dreamed up. it went through its phases. it was still a very significant piece of it. >> the story was mostly about growth modernization. the community, the opportunity. historically, maybe a little ambivalent. at this point, look, it is extremely relevant in terms of these communities built around it. this turns into a great financial company from a moneymaking erspective. and from a community that sort of makes money. >> let's talk about the idea that they will ive the opportunity to buy some stock to the people who are known as

reddit-ers. why would they do that? >> you know, like a wikipedia, reddit is a place where a lot of editors have invested a lot of time and social capital over the years building it. there is no question that the value of reddit comes down not just to the software, but to the communities that have been built there, and the communities who have coordinated those. there is a long history of reddit struggling engaging with moderators in their beliefs, versus those of the company. much like ideas that uber floated around the ideas, i don't think it really matters very much in the big picture, but it's a nice gesture. >> we have about 45 seconds to get your views on tiktok. >> it is a national security risk and needs to be banned.

great platform, but it is pretty clear they don't operate independently enough from the chinese government. and it's pretty clear that it is a huge national security risk. >> would the sell of it help your worries, or not? >> yeah, that would make a big difference. the reality, i don't think it is going to happen. they have laws against selling it. unfortunately, they will get caught in the middle there. >> thank you so much. >> that doesn't focus for the exchange. i'm going to go over there. i'm going to go there and join her after this quick break.

welcome to power lunch, everybody. so glad you could join us. leaders turned to laggards. it's been a nice start for the migrants -- markets. tesla, down 35%. we will drill down on those names and what they mean to the market. >> it is never too early to start investing. a powerful increase in accounts set up for children! we will talk to one te