the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. the all new godaddy airo. put your business online in minutes with the power of ai. good afternoon, everybody. welcome to power lunch alongside julia boorstin, i'm tyler mathisen. is meme media making a comeback? former president trump's media company, that one is up 70% this week. we will look at whether it could be different this time. plus the disney drama. the company settling a long running legal dispute with allies of governor ron desantis. today adding hulu to disney plus. all of the company face as

proxy fight at next week's shareholder meeting. a lot to discuss. let's take a check on the markets. the dow and s&p 500 are trying to snap three session losing streaks. >> but while the s&p 500 has gained 10% so far this year, it's remarkable that's happened with one of its biggest components falling 10%. probably is the biggest component. here with more on why apple has gone from market leader to market laggard is steve kovach. >> apple started on top of everything. they had to launch the vision pro. returning to sales growth for the first time in a year. the largest market cap in the world. many of them from governments around the world have humbled apple this year. sending shares down 10, 11% or so year to date. all while its big tech piers continue to climb on the hopes of ai. let's run down what's happen sod far this year. you have the china business. may not be improving. we saw this report from

counterpoint research that said iphone sales fell 24% percent in the first six weeks of 2024 from the same period a year ago. the eu started enforcing its tough new tech law called the digital markets act. eu said it's investigating apple for violations of that law which come with steep fines. and apple canceled its next big thing that self-driving car project titan. and of course last week the doj unleashed its wide ranging aunt anti-trust lawsuit. what can change things? mark down june 10th on your calendars. apple told us yesterday that's when it's going to hold wwdc, that's of course the annual developers conference. likely going to hear the ai plans for apple there. if you don't believe e, take a look at this x post from greg joswiak teasing an absolutely incredible wwdc with the a and i capitalized. what do you think that means? apple's put enormous pressure

on itself to as tim cook has put it break new ground in artificial intelligence. apple doesn't have a clear ai narrative yet, instead pointing to past products and recasting them now as ai instead. now after all that in the summer we have september when apple typically releases new iphones. those need to come with exclusive ai features to convince folks to buy who maybe would want to hang on. >> what's the best case scenario of what apple could announce in this ai realm in june? we've seen so many ai assistance. what is going to be impressive in this ai space given how many other products are out there? >> that is the three trillion dollar question so apple can get back to that market cap. when tim cook says break new ground in ai that says we're going to see something we haven't seen before. i don't know what that is. >> start with making siri better. >> that seems like a low hanging fruit. we have those reports about potential partnerships in ai with google's gemini, with

china. and to what extent are they going to be using those ai products in their own whatever idea they have. >> you went through a real litany of concerns that have afflicted apple in the last ten weeks. anti-trust. anti-trust in europe. violations of the digital security act in europe. ai. the car project. of all china -- of all of those things that you mentioned which ones are potentially the most damaging to apple over the long run? >> it's if they can't deliver a bang up announcement on artificial intelligence these concerns will all be validated that apple is behind. that apple can't come up with an innovative product. that bearish narrative will be fulfill led. the bullish narrative is they'll knock our socks off with something great. >> that's where the pressure

is. that a big deal there would cover a multitude of other sins. >> and they have to sell iphones. all this is to help them sell more iphones. china is a big part of that. it doesn't sound like this quarter is going to get any better as far as the china business. the economy there, the consumer there is weak. also competition from huawei. >> to think about regulatory issues when they need to keep their eye on the ai ball. >> going to be a big question for apple in the coming years. >> thanks so much. the demand for ai chips has made nvidia the third biggest company in the u.s. in the market cap. there is a new threat to nvidia's ai dominance and it's coming from inside the house. we sent christine to austin, texas for more on amazon's own chip building aspirations. >> well, it's not only about high cost, it's also about short supply that is causing so many big tech companies to really focus on building custom chips in house from meta,

microsoft, amazon. even openai is considering it. reduce their reliance on nvidia chips. i came to this lab. everybody's working diligently. they've been working on their chips for the last 11 years. including the one i'm holding in my hand. everyoning board. the thing with amazon or aws is they're still building all of these chips. they need to maintain their partnership. >> also means bringing the best intel, whatever the popular might be to aws. so it's really not just an approach that says we want to get everything on to our own silicon, it's really an approach that says we want to give customers the best choice. >> the best choice and the cheaper alternative. it's about giving customers the best of both worlds.

competition is fierce. not only nvidia, amd, et cetera. it's not easy to compete. that's why labs have been around for at least 11 years. i say that and i think of an example steve was talking about apple. apple, for example, there's just a six researchers from six different universities that published a report saying their security flaws now in apple's chips used in the m 1, m 2 and m 3. used for a lot of mac books. these security flaws reveal secret encryption keys. another separate story is they tried to get their smartphone chip off the ground but were unable to do so in time so they had to sign up with qualcomm. microsoft have launched after years of production their first or i should say set of two ai custom chips in house. it takes some time. aws and all these lovely people around me, they're spending billions to plan their future destiny so it's not as reliant

on nvidia. for now there is a balancing act of being nvidia customers and competitors. >> the media industry used to call this being frenemies. they have to maintain their relationship. also are trying to create alternative rival products. my question is given what you're seeing there about the variety of chips and also the volume they're able to create, when will we see these tech giants be able to create enough of their own chips to not rely on the likes of nvidia? >> well specifically for aws, they're able to offer these chips to their aws customers and say okay you can either go the nvidia route or the aws route. i guess the strength that nvidia has right now is the developer software that's part of that ecosystem and often what the ceo will talk about is everybody uses kudo. there are four million developers using that software. it makes it difficult to switch over to a competitor. but that's something all of these big aws is known for the

cloud, known for their products. they are working on it. they argue that they can offer it at a cheaper price. if you're willing to switch from certain software and go for the cheaper maybe more power efficient option, it could be a win for customers, especially when you're thinking of these gpus that you're factoring in costs between 30 and 50,000 per chip and that's not including the entire board that has thousands and thousands of pieces and all this intricate -- look how tiny. he's using tweezers. i was going to say toothpicks. tweezers right now. clearly it requires a lot of effort and skill. >> so ceos and cfos and boards are paid to make these decisions. i can only imagine the capital expenditures required here for companies like amazon or microsoft or apple to build its own chips, to build their own factories to make those chips or to buy or lease capacity from captive suppliers has got to be vast. do you have any idea what the capital outlays are when a company wants to do this?

>> tyler. i asked this question twice and although the aws team is so helpful and friendly they would not give me an amount on how much they're spending per year on specifically building in house chips which are then manufactured elsewhere. most likely tsmc. if it we're going to give a ballpark figure. sam altman talking about localizing and bringing chips into america, building there, creating a foundation and he put a price tag of $7 billion. obviously billion is quite a bit. that puts into perspective how much money a lot of companies have to spend over years. i say years. over 11 years here. microsoft has been working on their chips for over five, six years on their custom ai chips yet they've only recently launched them. meta falls into that category too. it's not easy to do. eventually the money is going to run out and they'll realize we either let the chip companies do it or we decide we're doing a good enough job or we go and acquire a smaller chip company which was actually

the case for this particular lab years ago. >> thanks very much. next topic on technology. topic tiktok. congress seems to want to ban the app or force its chinese owners to sell it. what do you think? steve liesman joins us now. steve. >> hey, tyler. thank you. nearly half of americans are concerned enough about the national security threat posed by tiktok to support either banning the social media app or forcing its sale. there are substantial political divides, generational divides and splits among those who use the app and those who don't. 20% say it should be banned no matter what. 27% say it should be banned unless sold to a non-chinese company. put that together, 47% support a ban or a sale which is a plurality. 22% say they're unsure. 31% say hands off of my tiktok. republicans come in 60 to 20 for the ban or for sale.

democrats split 40 to 30 in favor. just slightly in favor. those aren't even the biggest splits we picked up here. 31% of all voters say it should be banned but it's 48% for those 18 to 34. just 11% for the 65 and older crowd. while 20% of non-tiktok users oppose the ban, that jumps to 53% for those who are using the app at all. 67% for those scrolling through the app every day. this issue may be more fraught for the democrats and biden than for republicans and trump. biden's struggling to hold his winning coalition together from 2020 and already has problems with the youth vote. take a look here. while the survey shows a 39% overall boom other biden for all registered voters, rises four points from the last survey to has his average of 40%. it stayed at 33 in this last track for young voters. best outcome could be a sale

that is seamless to users, that's the best political outcome. this could only be the beginning of a series of issues pitting national security and social concerns on the one hand against tech freedoms on the other. guys. >> one thing that's so interesting to me about this is the fact there are plenty of tiktok users who are happy with the ban or fine with the ban. and sort of indicating the fact that people believe they're going to be able to continue watching short form videos say on other platforms like youtube or instagram. did you get a sense of whether or not people feel like they would be voting the people concerned about a ban would be voting based on this being an issue? how important is this as an issue? >> that's an important question. i don't think this is a decisive issue. you think of issues like inflation, issues like taxes, issues like abortion. they rise up and become one of the more important issues. this isn't even on our list. i guess it wouldn't even register on our list.

i do think though an election where both candidates are very close in the polls, it's 46 to 45 with trump just one point in front. it's a marginal issue but it's an election where the margins may matter a lot. >> is it a partisan issue? go back through those numbers you mentioned a moment ago with democrats, i think mildly in favor of a ban and republicans more staunchly so. >> yeah, look at the independents there. it is a partisan issue. 60-20. when you look at that chart. it's tough to recycle those things. there's a lot of undecided. people could be swaywayed on it. republicans seem more in it favor of it. you guys remember when donald trump called us up and we did an interview with him on squawk box and he said he opposes the ban. so it's kind of usual at this point to have the republican electorate be at odds with

their presumed nominee. we'll see if former president trump pushes that issue more and brings it to the electorate more in line with where he is on it or whether or not they stay on these different sides of the issue. >> steve, thank you very much. steve liesman reporting. appreciate it. >> pleasure. the return of the meme trade. why reddit could be the newest target. hulu on disney plus launching today. pushing users into a new kind of bundle and away from a la carte streaming. we'll discuss further ahead. ontario has all the partners you need to make the electric vehicle of the future. with one of north america's largest i.t. clusters. 65,000 stem graduates per year. and all the critical minerals to make electric vehicle batteries. ontario. your innovation partner.

meme-like volatility may be returning. reddit and trump media two of the big movers today. a closer look in today's tech

check. >> so yes, this is a new wave. the old meme stocks aren't back by any means. what it underscores is a market increasingly driven by momentum and retail investors. one though is not like the other. let's take reddit first. its price to sales multiple is higher than that of meta, snap, pinterest. it hasn't gotten so out of hand. it hasn't passed nvidia which is a momentum stock. not a meme stock. now look what happens when you add djt to the mix. it has just $3.4 millions in sales. giving it a price of sales multiple of more than 2000. that blows anything else out of the water. even nvidia. and you can barely even see them on this chart. when i say one is not like the other, we're at meme levels but djt is in a league of its own. >> so break this down for us. what counts or qualifies as a

meme stock? is it just about the volatility? is it trading volumes? because i was there on the floor reporting on the reddit ipo last week and at first it didn't look like it was going to be a meme stock. wasn't necessarily in meme territory. >> so it has to have momentum like you said. volatility. divorced from fundamentals as i pointed out with those valuations and maybe importantly, it has to be a topic on the wall street bets subreddit. i was looking through on djt in particular. you had users saying pump and trump. another one said there are waffle house locations with more revenue in a month than truth social had in an entire year. which is interesting because they're very aware of how ridiculous this is. there was even a user that posted the financials of djt and the others said get out of here, we don't like to talk about fundamentals. that's not what we do in here.

>> i find delicious irony in the dj trump valuation on a week where the valuation of his properties has been such a headline issue. here is a valuation that is so outlandish. he didn't -- he, donald trump, didn't talk up the valuation. the market pushed the valuation. >> yeah. >> the branding, the brand value of trump pushed the valuation that high. he didn't do it per se. >> tyler, it's a -- didn't we learn this lesson in 2021 that the incentives in the stack structure need to be looked at closely. there's a word of warning, yes, these are divorced from reality and yes, the meme stocks of 2021 are nowhere near those valuations. it's dangerous to short these stocks. even if you know they don't make any sense. take this number. short sellers lost nearly $160 million on paper in 2024 so

far. so even though we can say all of these things, doesn't have any basis in fundmentals. they can keep going higher longer than investors can remain liquid or remain solvent. >> i will say if you buy djf today at what is it $66 a share, something like that. i didn't see the last quote there. if you buy it at $66.50 a share today if we come back and check in six months or a year i don't think it'll be $66 a share. it'll be lower. >> i'm not sure either. tyler, i don't know. these things don't make any sense. so they can keep going for a long time. >> that's not to say it might not be $266 in between then. >> yeah, exactly. >> could easily be. could easily be. >> unpredictability is another hallmark. >> it's short squeezing. that's another trait. >> thanks very much. merck shares higher on the

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bond yield heading lower. let's get over to rick in chicago for more. rick. >> reporter: thanks, julia. $43billion, sort of an odd ball maturity. not a record size offered by the treasury. it completed 176 billion in supply and as you look at the interday chart you see that low yield. a really spectacular auction. if spectacular is defined as investors fighting each other to get to those seven years. if you look at a two day of tens should notice a couple of different things. extended yield drop. more notably, we are much lower in yield today than yesterday's low yields. much higher in price than

yesterday's high price. the momentum continues going into the holiday shortened week. if we look at the yen and this is key. this is a 24 hour chart. it traded up to nearly 152 which is in favor of the dollar versus the yen. we haven't closed at 152 or higher since the 29th of june 1990 as you see on this chart. 34 years. and what reversed it was verbal intervention. we all know if you have been watching the history of intervention by the japanese, it has not been successful. to think they're going to try to move the market with guidance verbally may be a better idea than throwing their money in. if you lose on the latter the market senses it and many trieders go after it even harder. >> one of the great mysteries of cnbc is who is going to do

the cnbc news update at any given hour. >> here's your update. transportation secretary pete buttigieg offered no timeline this afternoon for the reopening of the crucial port of baltimore. but he said it is a top area of focus in the aftermath of the collapse of the francis scott key bridge. he also said the white house is focusing on dealing with supply chain issues addressing surface transportation and rebuilding that bridge. israel has asked the u.s. to reschedule an abruptly canceled meeting on its plans for a ground offensive in rafah. prime minister benjamin netanyahu called off the talks after the united states abstained from a united nations security council vote. the u.s. warned a full scale invasion of rafah would be a mistake and would weaken israel's security. the illinois supreme court agreed to hear an appeal from jussie smollett. he was convicted on five counts

of disorderly conduct in 2021 after chicago police found he fired two brothers to stage an apparent hate crime attack in 2019. he has maintained his innocence. tyler, i will send things back over to you. >> dom chu, thank you very much. after the break, two big headlines out of disney. launching a new bundle and settling with desantis. the stock is up, yes, up 32% this year. one year it's up nearly 26%.

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and offers high-quality municipal bonds from across the country. they provide the potential for regular income are federally tax-free and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. welcome back to power lunch. big moves happening in the magic kingdom today. disney and the state of florida agreed to end litigation over control of the entertainment giant's governing district in the state. the move ends a nearly two year legal battle brought on by governor ron desantis after disney showed opposition to florida's so-called don't say gay bill. this is not the end of disney's

troubles. bob iger. campaign got a lift from eagan jones. they say they see quote, very little downside and a lot of upsides to putting him on the board. let's dive into all things disney jim, let's start things off with you since you wrote the book on disney. disney wars. you know so well how this company works. what do you predict will happen on wednesday? when we get the results of this vote and how do you think this whole proxy battle will shape how disney changes in the coming years? >> those are great questions. and of course i don't have a crystal ball. i don't know how it's going to turn out. there's tremendous amount of suspense about this. i will say i would have said a few weeks ago that i thought there was little doubt that disney would win. it's tough to win a proxy contest. the big, you know, companies like vanguard and fidelity.

they're reluctant to embrace shareholder challenges to existing management. but peltz has picked up a lot of support from some of the advisory services and there is this looming issue of succession hanging over the company and would peltz really be in a position to add value to that very important process that's going on. so there are a lot of balls in the air. it's been a very nasty fight. a lot of character assassinations going on. all kinds of claims being made. i think it is going to go down to the finish line. it's worth remembering even if peltz doesn't win but gets a substantial shareholder vote i don't think the board can ignore that. he's said he's not going away. he'll remain a major shareholder. if he get as lot of support the board will have to listen to him. remember, years ago isnor was the ceo. disney won a shareholder challenge but there was so much opposition he ended up having

to leave. >> such a fascinating history to this company. we're showing the board of directors up for reelection. john, you have this fascinating note here outlining all the different reasons you're optimistic and bullish on disney stock. raising your eps estimates and upping your price target by $20 to $140. how much do you see this peltz proxy battle as a distraction and potentially limiting iger's ability to put in some of the things he's put into motion? >> i would say as of now i think it's a distraction. it's taking a lot of management's time. the early signs after turn around orchestrated by bob iger's return are in motion. i think we're seeing the signs. and then i think we capture a lot of that improvement in our new model and our report today. but i think there's risk to that. i mean, if peltz wins, if it there's is a change in the board, i do think there's a risk that bob could leave the

firm. and really jeopardize a lot of the gains we've recently seen in the company. >> i want you to specifically dive in here to your outlook on direct to consumer and where you see that business going. that's a key part of your bullish note here and the fact you see those ddc margins increasing. this is something that's important to nelson peltz. what's jr. outlook for the streaming business especially today as we start to see the integration of hulu and disney plus. >> we're at the cusp of seeing disney plus and hulu put together as one service probably by the end of the year. we do think there's a substantial amount of synergies in putting those businesses together. we think it's good for growth. you really need to compare the operations of that business to have netflix is. last year disney plus despite over $20 billion in revenues lost over $2 billion. if we could get anywhere close r

20% this could be a substantial, you know, earnings generator for the company. we think the company is on the pathway to prove that out. >> in our intro they see very little downside and a lot of potential upside to putting peltz on the board. i'd like to get your reaction to that. what is the downside and what is the upside and as john just said, the downside might be that mr. iger says i don't want any part of this, get me out of here. >> well, you know, i've done a lot of research and interviews on peltz's record at other companies. by and large other ceos and top executives who when he came on the board generally praised his presence there. thought he was constructive. he listened. he'd change his mind if necessary. the one negative they almost all brought up was how time consuming that it was. that you suddenly -- there's no

question that iger would have to spend a lot of time his dealing with peltz. holding peltz's hand. discussions with peltz. i believe it was the ceo had to create a new executive position to handle all the managerial duties so she could spend all the time dealing with peltz. so that, i think that is a risk. on the other hand, some of the charges against peltz ignore the fact he is a very large financial interest in the success of disney. by the way, he bought last fall. he's sitting on a big gain already. he wants the company to succeed. he wants it to make money. he is aligned with the interest of other shareholders. i don't think it makes much sense to say he's going to go in and be destructive. that's the last thing he'd want to do. >> certainly not his financial interest but that whole process may be distracting if he is indeed elected to the board. another key piece of this company of course is the parks business. great interest to nelson peltz and a huge piece of disney's

revenue and profits. john, you're bullish as well as they continue to invest and expand. i'm curious if you're at all concerned about the growth in the past year or two being a result of pent up demand post pandemic and whether you see any impact from consumer spending slowing down. >> there doesn't seem to be evidence thus far. travel has been very strong with the consumer. as you said, we like the new cap x program to modernize and expand the parks both in terms of existing parks and the cruise ship business which is very high roi business. we think based on our new model and numbers today they can continue to grow that business mid to high single digit rate and it's very high roi business. i think it's something that still has a lot of growth ahead it have. >> no signs of slowing down just yet. this will be a fascinating one to watch in the leadup to the meeting on wednesday. thank you. yellen's warning to china. the treasury secretary slamming

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treasury secretary janet yellen touring a solar plant in georgia this afternoon. megan joining us with more on what secretary yellen had to say about china. >> so in a speech just getting underway this afternoon, janet yellen is taking aim at beijing over what she sees as overproduction of several key technologies. solar, electric vehicles and lithium ion battery. she'll be pressing chinese officials to address overcapacity during her upcoming trip. she'll make it a key issue in discussions arguing excess capacity in these industries hurts not only american workers and firms but china and the global economy. the issue as yellen will lay

out is that chinese overproduction in government subsidized industries has led china to sell products abroad at reduced prices. makes it harder for other countries to compete. part of her concern now is the u.s. has seen this play out before with solar panels. to emphasize this point she's delivering these remarks inside a facility that produce solar cells in the u.s. before declaring bankruptcy seven years ago due to a flood of cheap imports from abroad. the company's back on track to restart manufacturing this spring after securing around $100 million in financing from the inflation reduction act. this shows just one way the biden administration is aiming to compete with china on these issues. guys. >> megan, stick around as we bring in our own pippa stevens to help react to this. >> i think the crux of the issue is the administration is trying to have as much renewable energy developed a quickly as possible while also jump starting a u.s. domestic supply chain. this is challenging because china is by far the leader

here. they control more than 80% of the solar supply chain. by some estimates they've invested heavily to be the leader in solar and batteries. lithium retrain refining. solar cells manufactured in china are about 50% cheaper than those in europe and 65% cheaper than those in the u.s. so there's no question it's hard to compete. on the other hand the inflation reduction act is making a big stride there. we've seen announcements of factories. the reality is these things take time and right now china is the leader an they are sending a lot more product into the channel. >> so megan, how did this company come back from the ropes the company you're at? they got financing through the inflation reduction act. what makes them think now given the sort of dynamics of the market place that they can make a go of it? >> i think they're looking at this financing, they're looking at the administration's focus on making sure we produce at

least some of these solar cells and solar panels in the u.s. as sort of their opportunity. they're trying to hire more and build out this production. one criticism we hear most often of the inflation reduction act is by subsidizing our industries here we're doing exactly what china is doing. do we want to over subsidize or are we at risk of oversubsidizing. maybe can't be sustainable then long term. >> both sides over subsidizing. you mention it's going to take a long time. no matter what happens here, it's going to take a long time. how do you see this impacting what's happening here on u.s. soil? >> the first thing to note is that the module manufacturing is now coming to the u.s. that is the last stage of the panel manufacturing process and for the time being things, we haven't really gone further up the supply chain. things like the poly silicon, that is still taking place outside the u.s. the u.s. doesn't import cells and

modules from china a lot of that production moved to southeast asia. we get more than 80% of our modules from four countries in southeast asia. ultimately the u.s. will build out a robust supply chain at least for certain portions of clean energy. the fear is that just like we've seen with europe's reliance on russia for hydro carbons if it's too concentrated in one area that pose as risk even maybe a national security risk. >> just a final question to you, megan. does this indicate any sort of a change in the u.s. china policy? i think we are seeing the biden administration get firmer on this point. in previous trips to china by yellen or by officials beneath her they've been noting they're addressing over capacity. we haven't quite seen her be this specific on exactly what they're worried about. you know, this is something that is an issue in this industry, it's also something some people worry about with chips as well because we've seen this play out before. i think they emphasize they want to be cordial with china.

they don't want to shut down that interaction, especially not that economic cooperation. they want to make sure it's fair. we're seeing them ramp up that dialogue. >> thanks so much. coming up, driving drugs and drapes. we'll get a fresh three stock lunch. as we celebrate women's heritage month. new cnbc change makers. here is wnba commissioner. >> i was always very curious so i say curiosity drove me but confidence built me. i tell a lot of young women today, raise your hand. build your capability. good things will come. that's what happened to me and that's what we've been doing at the wnba. that's what a change maker really is. someone who's going to make decisions to transform a league of our size and scale and thrilled with where we are right now.

welcome back, everybody. we're here with the president and chief investment officer with kessler management.

let's go to tesla. wall street continuing to cut price targets on the stock. a fresh round of warning on the first quarter delivery numbers. one of the very few underperformers and big tech stocks so far this year, down about 27%. >> yeah, so tesla is in the same category as apple. the two worst performers of last year's mag seven, and they have actually been kicked out. so there certainly is a lot of excitement there anymore. we think about it, both of these stocks have kept away from investors. they have real strategy and what they are doing in ai. if we knew more about them, it would be easier to conclude that both should stay as underperformers. think about tesla for a minute. the expectations now for deliveries have been cut. china is not a surprise on the upside anymore. it's a big negative concern. stocks pulled in, they just raised prices, so that market might be stable.

but more importantly, they are most likely going to have a very scary on the upside announcement at some point from their ai application, and it will be wrapped around this cell driving aspect that they've developed. we don't know if it's going to come soon, but we wouldn't be -- we would very much expect something here in the next maybe even three weeks, just hinting at where they could go. you would not want to be on the wrong side of tesla when they are now applying that type of technology to on the road driving. >> you would say, by this here, in light of the fact that you think something big is coming in ai? >> from a tactical perspective, i would let the quarter, and the next two weeks, let them reports, let them give you potentially more bad news. and take that as my entry point. we don't own it right now. but if we see any more weakness in it, giving the upside that they have, that would be a great time to start dying.

we're going to the earnings to buy regardless. >> shares at 1.5% today. the company scoring a major drug approval for a rare life- threatening lung condition shares a markup of over 4% today. what's your take on this one? now 5%. >> i say follow the crowd here. this is unique therapy. no one has it. this is probably a $20 billion market. they have it on the pipeline, and the fact that this is going to be in the market now to help fill that, we think it's going to lead to a higher multiple for the stock and it will do a lot better. >> already. i guess it's the company formerly known as restoration hardware. your trade here, jerry? >> yes, so this one, to me, is simple. it might have a little better expectations, but the reality is, these guys are selling fixtures and furniture.

that was the pandemic cycle. both of those things are hard to consume. it would take quite some time to go through another cycle like that. which means you are more likely to have earning reports over the next two or three quarters. we would fade that and look more to consumable name in the home sector, more like home depot. >> thank you very much. we appreciate it. good to see you. we will be right back.

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>> we only have two minutes left in the show and several more stories you need to know, so let's go right to it. new york city's mta board approving a new congestion pricing fee for vehicles entering manhattan. they voted 11-1. this program includes a $15 total for most passenger cars ending the city on 60th street.

this will help reduce traffic and also raise $1 billion annually from public transit improvements. but it is still facing multiple losses by officials, $15 makes everything more expensive. >> lets you i want to meet a friend for dinner. i live in new jersey. i leave here, i go across the bridge, it $17. i go into west 60th street or wherever it is. it's another $15, and the nafta park, which is another $50. people are going to be coming to new jersey to meet me. >> i think is going to e litigated. >> that is probably true. >> the spring housing market underway, and mortgage caps are down 16% from a year ago. finance applications are down 9% in the same timeframe. i guess it's higher interest rate, and people sort of walked into the idea that if i have to go take out a 7% loan, i better where i am and enjoy my three

or 4%. >> homebuyers are going to halt or lower rate. >> you have time for one more? let's just look. 15 seconds. the dow industrial is up 289. it's been a good day here. thanks for being with us. thanks for watching power lunch. >> welcome the closing bell here at the new york stock exchange. this make or break our begins at this questions, whether investors should begin for a pullback or another pop in stocks in the quarter ahead. we will ask the experts. in the meantime, your scorecard with 60 minutes to go in regulation looks like that. in the nasdaq, we been positive for the dow and the s and p for much of this day. were putting in solid gains today from the healthcare space, and honeywell is also a standout in the session. as for technology declines, and video