an interesting mix of data from themacro, and the micro, and we talked about the disney annual meeting, and tesla tomorrow, and it will be interesting to look at the lens of that auto sector. >> disney's meeting is on wednesday, and we need more evidence like the fed needs more evidence that inflation really is cooling down. meanwhile, let's get to post nine and the half. >> welcome to the "halftime report." we will ask the investment committee for their strategies in the month ahead. joining me for the hour here. there's the s&p off about one-half of 1%, and the nasdaq in the red as well. steph, we came in and let's call it, and we have been about

record highs, and we had the pce largely in line, and the ten-year is up to 42, and the stock market doesn't like that. is this the quarter where we start coming to grips with the fact that the fed is not going to cut on a schedule that we once thought? >> we probably are higher for longer, and may not see cuts this year. if you look at the ism, it was hot, but it's the manufacturing series, and we talked about the economy being strong and we just saw a 34 print, and we talked about the consumer and all of a sudden we have manufacturing doing well. why do i pay attention to all of these things? it translates into better earnings. little concerned about 2025, it's a little aggressive up 15%

but we will deal with that down the road. it's legit to say we could is a -- see 8 to 10%. margins are doing better than expected and that was a big surprise in the first quarter, and that had to do with lower inflation and price improvement across the board, and american companies are excellent at doing this. and now we have a wrinkle that china could be doing better, and that number over the weekend, their manufacturing ism was the best in a year. can you imagine if you see global growth starting to pick up with momentum here remaining pretty good, so it's goldilocks, and i do worry about other things, scott, and it's good for earnings and that's what i care about the most. >> jason, i feel like investors are more bullish than they have been in more or less 18 months. >> right. >> the data would suggest that

they continue to put money in the market, and b of a's flow show, the highest allocation into equity since november of '22, so we are bullish, we're invested or offsides? >> i don't think so. this market is really exciting in a lot of different ways. one is, look at this time last year where we saw very, very narrow growth. tech was out to lead, and ai was the story. if you look at this story, energy was the number one sector this quarter followed by communication services followed by financials, right? and tech was the number seven sector out much 11, so i think this is, for me, a healthy market. i think this is a good follow-through for the rest of the year, and i think this is exactly what we want to see given the macro data we have seen over the last couple of weeks. >> what kind of risks as we enter a different quarter?

he wants to once again have the conversation about momentum, and whether there is going to be a continued unwiped, and whether the biggest risk in his mind could be around the semis. nonetheless, the risks as we enter a new quarter are what? >> i think it's what you just said. i think it's the higher rates as well. by the way, as we were opening up the show, the ism survey, and it's a question of what is the magnitude. remember, semis and tech in general have been up hard over a year and a half now, and for them to give back a little, the s&p is off half a percent right

now, and i don't think we should be worried about it. i am underweight tech. within techi am overweight on sepl semis, and you have seen industrials and financials, and i think that continues on the back of -- steph, i think you said goldilocks. this is a goldilocks environment. inflation is not coming down as much as we want to but it's coming down, and you have gdp growing and good indications from a lot of the sectors i just said where the earnings growth will be nice in the coming quarter -- >> nobody thinks there's a point where the strong economy is a problem? i know it's perverse to say, okay, a strong economy, but to what degree? >> define it. the risk is, just to really go there and what would keep me up, and this is not going to happen, but the feds wait a second, we will have to raise rates and that's not on anybody's radar

screen, but if you want the risk that is, look out below, that's the risk -- >> we can handle the rates. because we have had enormous amount of stimulus that has been put into place in the economy, and it started during covid in 2020, and we put 60% of u.s. gdp into -- >> there's not a number next on the screen on the ten-year, and there's not a number saying maybe that's the breaking point, we are 4.33 on the ten-year, and some banks say you get to 4.35 and get over the technical hump and maybe creep higher. >> well, that would probably start to impact housing. >> what if we get to 4.50 -- >> 5%, that's where your 30-year

fixed will be 8% or close to it, and that would be problematic for the economy. so much depends on housing. it's not just the housing sector itself. it's all around it, right? it's the multiplier affect. that would bath me. we have stronger growth because we have had an enormous amount in the system, and we put in 2.5 trillion, that has not gotten into the economy yet this year. >> are you with that? >> let me add to back up what steph just said. 4.5 doesn't scare me, and we were at 5% and we were worried about the wheels coming off the bus and they didn't. price matters. not everybody believes this, and when you look at the cyclicals, look the industrials and discretionaries like autos or

airlines, and that kind of goes hand and glove with the fact that the economy is stronger but the share prices, we're not talking about nvidia when we are talking about airlines or oughtos. >> what about the chip names, what happens if there's an unwind in one of the most high-flying sectors in the market at the same time, and you have significant questions about mega cap, and the mag 7 is now p mag 4 or mag 5? >> well, nvidia, they are up 82% year to date, and i think they are due for a pull back, and they can't keep growing, and all the names in the space can't keep growing at the pace they have been growing. i think, you know, right now there are other places to go, and that's why i think it's the

market, and the broadening concept that is an exciting piece for the market. >> citi today makes a number of sector calls, speaking of broadening or not. they downgrade tech, and that down plays into our sector, and they take sector to market weight overall, and a market weight on semis, and they think you will get divergence within the sectors -- >> well, it's 35% tech and comp services. to be overweight, that to me takes on a lot of race. i have been underweight, wrong, of course, but i did have big positions that did nicely, and i do think that going to market weight is still aggressive, scott. it's still 35 -- you know, tech

is still 35% of the overall market. >> don't you want to at least be market weight in that area? >> that's a risky bet and a great concentration. >> it's so risky to not. >> but just last year, but remember two years ago. >> well, the fed was raising rates -- >> well, whatever the deal was. if you were overweight in tech you got your head handed to you. i have exposure -- >> that's underweight. >> it's exactly what jimmy and -- what we have been talking about for a while, right? i have been talking about this for months on end. >> 100%. >> the point being is -- diversification is exciting but where you will add to returns is if you find names not everybody is involved in, and that's the way i invest.

>> there are a lot of spots within the market where some are overbought, and nontech, we have gone down the list of large cap stocks outside of technology that are at or near record highs, whether it's some industrial names, it's financial names. who knows if they can continue to rise, but this has been a many more boats rising than just the big srayacht of technology? >> no doubt about that. to your point, scott, i think there are parts of industrials overpriced, and i recently added caterpillar, and it's reaching all-time highs, and you have to be duh duh skreupl tphupbt amongst even the other sectors, but broadly based speaking, the

cyclicals -- >> what is happening in industrials is something unique, and i think you both would agree with me. we have onshore and reshoring happening all over the word, but certainly definitely here. you speak of cat, it's an international company. who will benefit more if china starts to do better, right? the stocks have done very well, but you have kind of the tailwinds that we have not had in industrials and in cyclicals for a really long time. >> i am looking at banks, right? they are going to kick off earnings and that's where it's all going to get interesting to start, jimmy, earnings season. financials performance, xlf, record high, citi, record high, wells is up 17.5% in the quarter, and american express up -- >> the whole 12 minutes we have been talking about this, jeff's

tag line, are we whistling past the graveyard? that's an excellent tag line. i don't think we are, okay? there will be a pause at some point in time, of course, and the question we have to ask ourselves, if that pause happens is it fundamental or will we just run out of buyers, and we will see in a week and a half when citigroup and that jpmorgan reports, and you don't want to hear about a trading loss or foreign currency devaluation that knocks earnings down, and you just want execution. i think you are likely to get it. from all the macro indicators we are seeing, i don't see a reason to worry about credit, and either on the corporate level or consumer level, jamie dimon will say something like, hey, balance sheets are in great shape but

watch out, and he says that every quarter. >> the capital markets are coming back in the narrative for some of the -- >> i feel comfortable saying some of the green chutes are there. >> we traded at or near one times book as long as we have been talking about book. >> that's not exactly true, and they have traded higher than that but the expectations are -- people are so skeptical about financials because you have not made a ton of money in the sector, especially in the last year, but i think the valuations are supportive and bank of america preannounced in the beginning of march and they talked about things basically in line with expectations, and on the margin you will have companies that do better on execution, and companies that do a little better on capital shares, and i don't think this next quarter will be the blow

away breakout quarter for financials. >> and accelerating top line, cutting costs and freeing up capital through strategic divestments? >> this is citi's quarter to win, and they have to just not mess up, and you don't need some peso devaluation, and that's already in the news. it's clear they are on an execution roll, and they will continue to cut expenses. as far as the top line goes, i would like to see more. the stock trades at 20% of tangible book value. what i want to see most of all, buy backs. buy backs and no messups. >> what about the banks for you, steph? >> oh, i thought you were going to jason. >> you have bank of america, morgan stanley, and amx and

schwab. >> yeah, i have been adding to schwab because it's lagged and i love that story very much and love that the ceo is buying back stock. bank of america, one of my largest positions and so is morgan stanley, and they are unique in terms of bank of america, and they have the wealth management exposure piece that i like that compliments the cap markets piece. good balance sheet and well capitalized. morgan stanley, it will depend on the new ceo and can he be consistent, and they did outperform the last few years, and it's more of a capital markets play but they also have a wealth management business, and ama is also outperforming. >> the xle is up 8% over the last month. yes, it's one of the best

performers of the quarter, but really set itself apart over the last 30 days. does that continue? >> you know, i think it does. there's a couple reasons. number one, we talk about this a lot on the show, the supply and demand dynamic, there's an exorbitant amount -- you know, going in the states our driving season and where a lot of the spending happens, and i think they have a nice floor for continued growth. we own xle and we got rid of -- we got out of chevron and that was an execution story for us where it didn't make sense anymore. >> jimmy, energy, for something that has exxon and ocean, and big positions, too? >> yeah, and i think the next leg comes from natural gas. i can't prove this, folks.

natural gas has been clobbered, and bottoming at 153 and now at 183, and to use the terms again, green chutes out of china. >> what about health care, up 8.5% in q1. citi today downgrades it to underweight, and that's part of the sector call i mentioned earlier, and tech is a sector and within that certain call is breaking down the segments. what do we think? >> other than some bio tech and eli lilly, the group acts terribly so i am not sure you want to downgrade it here because it lags so much, and especially because earnings grew better than tech, by the way, and you can find your spots within health care. i am underweight and i like ge a

lot, and it's a spin out and i think they are doing a better job in execution, margins and market share. i own j&j but it can't get out of its own way. >> are you offsides in health care, jimmy? you are overweight in the space. >> yeah, steph, you caught me by surprise on that. i am overweight. i think this is the snap back trade after 2023, but i think where you and i are having a difference is something key to what you said, you have to pick your spots. bristol myer has been a disaster for a long time and you and i have spoken about that. if you look at cvs, it's showing some signs of life here. i think this is where you are supposed to rotate into but not get out of. >> it's interesting to me that you are as bullish as most of

the bulls. >> yep. >> and yet you are overweight what would be considered a defensive area of the market. explain that to me. >> if i were in your seat, what i would say, jimmy, you are going into an election season, and stocks underperform terribly during an election season. that could be my achilles' heel in the trade. valuations dividends are very forgiving, and the demographic support, but on the election season thing, we have to point out the inflation reduction act from two years ago let the horse out of the barn as far as drug price negotiations go, and all of the drama coming out of washington, d.c., you are not hearing a lot on drug pricing, folks. >> the campaigns have not even started. >> it's a fair point. >> i find it very interesting that the executives in health care are making acquisitions and doing all kinds of mna, and $400

billion in the last year alone. when a sector under performs and you see companies doing mna, that's interesting to me, and they see value and i do think it's sort of an interesting data point and something worth keeping in the back of your mind when you are looking at the sector. >> let's go to the last debate in the sectors or areas of the market that you want to be in before we take our first break. we have done sectors, and now let's do a bigger area of controversy, right? you have had some come out and say this is the time for small caps, and tom lee is expecting 50% for small caps this year, and barkleys comes out today. >> i am long small caps, and i think that's the place to be. this is not a defensive sector. if i am in this because of rate

cuts, that's the wrong reason to be in there, and it may help as long as the economy is doing well, and that's the point, the economy has to do well for the caps to work. >> you need rate cuts, though, don't you? >> it would be nice -- if you are tom lee, and i am not making fun of him, and he may be right, you would need two to three rate cuts, but if you have margins that steph was talking about earlier, they continue to improve, this could be a nice 20% year. i do think you will get two or three rate cuts this year. >> does anybody think it's too soon, jason, for the russell? >> i think it's important to have rate cuts to support small cap growth going forward. the cyclicals and the economy remains strong, and small caps can work, but i think the extra leg of the catalyst -- we have seen a little bit of the performance at the end of last year and it sputtered out coming

into this year. i think cuts will be important there. we will take a quick break and come back, and calls of the day and trading individual names, next. we have bullish notes on delta, target and disney. we will find out how the desk is playing all of those right after this quick break.

not all caitlin clarks are the same. caitlin clark. city planner. just like not all internet providers are the same. don't settle. you want fast. get fast.

you want reliable. get reliable. you want powerful. get powerful. get real deal speed, reliability and power with xfinity. she shoots from here? that's kinda my thing.

calls of the daytime, and we start with delta, and the top pick at morgan stanley, and they see the stock going to 85 bucks, and the bulls valuation goes up to 110. they are talking about their push into premium will not allow them -- >> i am bullish on delta. i think there's a lot of upsides to earnings if you listen to what ed says about demand. this is a fun note to read. the bull case is getting a lot of things going right including a 12 times multiple where folks you could see a 12 times multiple in some blow off top, but that's not what a rational airline investors will look for as their base case. the interesting story they have is maybe it's a premium brand

like fitch. companies have been outperforming on the earnings and they need to continue to execute. i don't think we need to get caught up in the abercrombie & fitch comparisons. >> the stock goes from 195 to 205, and that's a 52-week high. they met with the executives. >> a encouraging note. food and beverage being a $20 billion business, and up 8 billion since 2019. a good mix of the story is the private label that has been the case. they have 11 brands over a billion each, so they are positioned well and profitability is good and they have to get the top line back, and i thought the skdiscretiona

comments were good. >> i think i'm comfortable. if they could see 10 to 1050 in the earnings power. >> let's talk disney. you have the proxy fight and the shareholder vote coming down to the wire. that's on wednesday. the target price gets raised, jimmy, from 130 to 145. >> what if this becomes an execution story? that's not cheap but it's not too expensive if you get the growth rate that supports the peg ratio. theme parks, i take it for granted, you can't have hickups in theme parks.

revenue has to come in before september 30th, and we talk about how profitable. let's get the hulu transition down, and that would be a nice shot in the arm for this stock moving higher. those three things. >> you are in favor of peltz. >> i am. >> what happens if he wins or doesn't? >> well, he has a lot of experience, and i don't think he will distract bob iger and the team with what they are doing, and if he doesn't get the seat, he and i will be happy that the stock is up. >> you keep holding this stock regardless of the out come? >> i do. i do. again, i think peltz doesn't hurt and on the margins can add, and iger and the team have been doing a good job, and i think the stock can continue to

perform. i think the peltz side show behind us, and it will be a sideshow when it's done, and that will be good. you have two independent investment banks that make a valuation and i think they meet in the middle, and it's a process. i don't know why it's taking so long, but i don't think there's any hair there. >> you supported peltz, too. >> i would sell the stock if he doesn't get a board seat. >> would you? >> yeah, i would. he could make a lot of change. you want him on your team. he has a proven track record, and i don't think it makes sense, so i would sell it if he doesn't get involved. >> you don't own it, so it doesn't matter? >> i sold it at a lot higher. let's get to the news with pe pippa stevens.

>> the judge ordered murdaugh for restitution to the victims. google plans to destroy data on the web browsing histories of millions of users to settle its lawsuit related to the privacy settings. the lawsuit accused google of misleading users of how it tracked people when they were in that mode. in addition to destroeugying th data, it will limit the information it collects. and then putin calls up for mandatory service, according to the document on the kremlin's website and it comes after putin called up 130,000 in september and raised the maximum age for military service to 30. >> thank you. still ahead, betting on

bonds and q2. where you can find the biggest finds, and bob will break that down in eft edge, next. uality time to a quality cause. swing by to see one more customer... [audience cheering] and really get down to business. go national. go like a pro. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. great job astro-persons. over. boring is the jumping off point for all the un-boring things we do.

boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. taking chances is for skateboarding... and gas station sushi. not banking. that's why pnc bank strives to be boring with your money. the pragmatic, calculated kind of boring. moving to boca? boooring. that was a dolphin, right? it's simple really, for nearly 160 years, pnc bank has had one goal: to be brilliantly boring with your money so you can be happily fulfilled with your life... which is pretty un-boring if you think about it. thank you, boring. the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks, and you're in business. make now the future at godaddy.com/airo when it comes to investing, we live in uncertain times.

some assets can evaporate at the click of a button. others can deflate with a single policy change. savvy investors know that gold has stood the test of time as a reliable real asset. so how do you invest in gold? sandstorm gold royalties is a publicly traded company offering a diversified portfolio of mining royalties in one simple investment. learn more about a brighter way to invest in gold at sandstormgold.com. we're back on "the half." let's get to bob with today's

eft edge. >> well, let's talk with joanna, the cofounder of bond blocks and they are 100% focused on fixed efts. are these four to five percent treasury yields that everybody will continue with in 2024? >> yeah, we think investors can enjoy using u.s. treasury etfs for their cash management and we think 2024 is different, where you will have risks. >> last year, short-term treasuries were all the rage, and this year you say to go in the intermediate term, three to seven years for treasuries, and why are we now in the enter meetut part of the curb? >> we think the fed will bring

rates down towards the end of the year, and so when interest rates go down, prices go up. this is how you can manage duration precisely. if you step out of one and two-year duration, that's why we like the intermediate treasuries. >> the eft yielding north of 4%, broad corporate bond, but you like the lowest investment grade out there, you like that, and you also like, of course, what is going on in high yield. what do you like here? >> our top picks in credit is the triple pwfrplt in intermediate, and triple c is high yield. you mentioned a 4.5 yield, and yields, it's the lowest credit

rating in the investment grade, and it has zero default risk. >> so you get more yield for very little default risk? >> little to none, because the whole investment grade is something like .02%, and so that's low. if you pick up more yield and you get a little more duration, that's why we like it so much. >> we will have a lot more coming up on bond yields, and that's at 1:10 p.m. eastern time. morgan stanley is involved in the space, and they launched two active fixed income etfs, and that's on "eft edge" on cnbc.com. and then stephanie owns these both and will trade them both, next. sh talk. ♪♪

nice shot... shot... taker. who programmed you?! i'll see you tomorrow. the future isn't scary, not investing in it is. 100 innovative companies, one etf. before investing, carefully read and consider fund investment objectives, risks, charges expenses and more in prospectus at invesco.com. (grandpa vo) i'm the richest guy in the world. investment objectives, risks, chi baby!xpenses (woman 1 vo) i have inherited the best traditions. (woman 2 vo) i have a great boss...

it's me. (man 1 vo) i have people, people i can count on. (man 2 vo) i have time to give (grandma vo) and a million stories to share. (grandpa vo) if that's not rich, i don't know what is. (vo) the key to being rich is knowing what counts. hso the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this."

and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life. when i first started golo and taking release, my cravings, they went away. and i was so surprised. you feel that your body is working and functioning the way it should be and you feel energized. golo has improved my life in so many ways. i'm able to stand and actually make dinner. i'm able to clean my house. i'm able to do just simple tasks that a lot of people call simple, but when you're extremely heavy they're not so simple. golo is real and when you take release and follow the plan, it works.

♪ ♪ welcome back to big industrial giants completing spinoffs this week, and ge is first. we know you own it, and ge aerospace will retain the ticker, ge. >> as it should. >> and larry will ring the opening bell, and it's going to be a milestone in this company's history and maybe the stock's progresstion from when you bought it? >> it has been years in the making. humbling and rewarding. it's up 85% in the past year. i think the story just gets going for them. they will have less distractions and they can focus on the market share position and

profitability. going to generate $5 billion in free cash flow this year. i think the story is still very attractive and i think it just gets going, as i mentioned. i will hold on to it. >> how big of a holding? >> my number three position, yeah. and i am not touching it. >> okay. all right. not adding to it? >> not yet. if there's a couple bad days, but up a lot, and i still like it very much. >> what about 3m? >> i think there's potential to see improvements, and we talk about spins and why they work and because there's less focus -- well, more focus on the primary company, the main company, and spinco also gets a separate management team, and they can do than just health care. they have industrial and they have transportation, and electrification, and electronics and consumers and et cetera, and

there are some places they can spinoff or close or consolidated, and i think the new ceo, bill brown, has a fabulous representation, and i think i am excited to see what he can do for this company over the long-term. >> you are looking for a culpian like move. >> yeah, won't take much. i recently bought this, so we will see if it can get some legs. we will take another break, and when we co bmeack we will look at the biggest winners and losers in q1, and mike santoli will join us with his midday word, next. with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

(fisher investments) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our clients' portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investments) yep. we do better when our clients do better. at fisher investments, we're clearly different. okay take a deep breath, it's all led up to this. the biggest night in baseball. in 1935, ge powered the first night game. and changed the way we see the game, forever. now, we're changing the way we see the future.

taking innovation to the skies. with better, faster, more sustainable technology that lifts people up and brings them home safely. electrifying and decarbonizing the planet. helping to make tomorrow brighter—for everyone. bottom of the 8th, we're all knotted up. swing and belt. april 2, 2024 is our opening day.

♪ ♪ mike santoli joins us with

his midday words. good to see you. new quarter. rates are up. you think today's selloff is in any way trepidation about interest rates? what is on your mind? >> there's definitely a little bit of the attention to the move in yields. we did have an indication for a higher open before we got the strong numbers, and i think that's happening in the context of a little reversal of the end of quarter action. may be over indulged in some respect, and it was a broadening move and a lot of the speculative stuff was being scooped up. the worst performing s&p performing stops year to date, all of them are down and you want to wait for them to clear out. there's a relatively delicate equilibrium we are in, where the economic numbers are good

enough. inflation has to be where it is, and we see where the fed and yields go. i think we are getting tested on that front, but it's not much more to make of it than simply you are up 10% and have not had a 2% pullback long-term that has positive implications, and short-term maybe you have to digest that a bit. >> doesn't take much, in other words, when you have an overbought market to the degree that we do to make you say, okay, maybe now is that moment to pull a little bit back? >> exactly. we have all been paying attention to the high momentum areas of the market that had a slight gut check, so i think that's what we are watching at the moment. again, you have to see this market develop one of these little wobbles into something of a more proper pullback. we have not done that since act. >> yeah, even the nasdaq showing life as we are having the conversation, and we will see you on closing bell. dom chu has a market flash for

us. >> we have shares on trump media and tech, this is, of course, the parent company of truth social, the social media platform owned by former president donald trump. this comes on the heels of them reporting in their latest regulatory filings, and their first report is a newly merged social company, and a loss of $50 million of revenues of $4.1 million. the company says in the filing, it says tmtg, the volatility continues here, scott. four trading days ago this was a 79 and change stock, so we will keep an eye on this. >> thank you. up next, we will look at the

leaders and laggers in the quarter, and we will trade them as well when we come back. 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

i want to look back at some of the winners and losers in the portfolio of the investment committee. steph, i want to begin with you. one of your biggest winners was quanta, up 20%. zoetis. can you talk about both? >> eaton and quanta are about the same themes and it's about infrastructure and the ira and the spending bill and how

backlogs -- >> and eton and quanta. it lagged into the print, but i do think that the grid upgrade is certainly real and in the second inning at best. their orders were 2% to 7% sequentially last quarter and that's what got me buy the stock because the momentum is there for both companies and the momentum is not cheap so you buy them on weakness. i think the zoetis underperformance is because it's done so well. they have a new product cycle story and now zoetis has competition. to me, both can survive, maybe zoetis is expensive and got ahead of itself, but i like both very much for the long term. >> all right. we know about nvidia being a big winner and apple being a big loser. you mentioned caterpillar and

that's one of the large-cap industrial names near new highs or at highs so we don't need to do that either. netflix up 25%. not a lot of people talking about that move. n netflix has been a tremendous mover and password shares, and their to way into sports is exciting to investors. so up 25%. it's moved a lot over the last year, you know, so for us it's not a name that we're adding to, but we've obviously enjoyed the run. >> what about the risk which is up 22% in the first quarter? >> risk has been interesting, too. cloud networking, you know, when i look at ai and ai span and cloud span, it's projected to soften in 2023 and it exploded due to what generative ai and all that's been going on there. so that's exactly where they play. the stock's up 23%. ups was up 48% in the last quarter. revenue up 21.

so i like this name. i think it can still continue to play well. >> all right. what about pallo aalto? >> palo alto has been an incredible stock as many of the cyber names have been, but this one is down surprisingly in the quarter, down 4%. >> yeah. yeah. yeah. what's interesting about palo alto, revenue was up 19% and the concern for me and the concern for the market was their guidance going forward. they have a new go-to market strategy and sometimes as a stock picker you look at that and say what was not working? why are you changing the strategy? that's why the stock is trade back and it was down 4%. >> it was down last year. >> 1 hun%. >> except fortnet which i own. >> you progress into a new quarter whether these stocks are going to -- as in palo alto's case sort of snap back or they'll be trouble ahead of

these speaking of highfliers. >> they're not cheap, that's the problem, but cybersecurity is a huge end market and certainly a place where you want to have exposure. i think it could be just as big as ai, to be honest with you. when you have cybersecurity companies getting cyber attacks that's a problem and you should see vendor consolidation. there are so many companies that don't talk to each other so nothing is really working. so the bigger are only going to get bigger and palo alto one of them and fortinet is one of them, as wl.el >> quick break, and final trades are on the other side. ite clien? great! i started using schwab investing themes, so now i can easily invest in trends... like wearable tech. trends? all that research. sounds exhausting! nope. schwab's technology does the work. so if i spot an opportunity, in robotics or pets, i can buy those stocks ina few clicks. can't be that easy. it is with schwab! schwaaab! schwab investing themes. 40 customizable themes. up to 25 stocks in justa few clicks.

everyone say, “space pod.” cheese. [door creaks open] [ominous music] (♪♪) [ding] meanwhile, at a vrbo... when other vacation rentals are just for likes, try one you'll actually like. welcome back. a couple of notes to tell you about. wednesday, april 3rd, david einhorn is going to be with us exclusively. we will be live from the sohn conference in new york city, an event that's near and dear for all of us, raises money for childhood cancer and david einhorn has been a longtime supporter of that cause and of

this event and he'll sit down with us and have an interview about that. we can't wait for that. shannon young is a partner. >> wynn resort. down too long. >> stephanie link? >> slb. >> see what the market does. s&p is negative as is the dow. take you into the final hour. "the exchange" is now. welcome to "the exchange." i'm jon fortt. here's what's ahead. the ten year up after the fed's key inflation reach and the prices mo prices moderated, but spending remained resilient and manufacturing increased for the first time in 16 months. our economy sees three rate cuts still on the table this year and she's going to make her case ahead of friday's jobs report. manufacturing in china also extending, breaking five straight months of contraction. is it bl