all of these stocks are set up for higher highs. >> oil is running again. farmer jim? >> on that note, transocean got that plus $500,000 a day brig contract. >> all right, thank you. sarat? >> same agenda there. slb. love the oil services play. >> all right. i'll see you on "closing bell." "the exchange" is now. ♪ ♪ scott, thank you. and welcome to "the exchange." i'm deidre bosa in for kelly evans. here is what is ahead today. stocks are under pressure, as yields, gold and oil hit highs, with the action, the story and the trades to make against this backdrop. plus, the fed getting ready to speak this hour, as the market is coming to terms with fewer rate cuts. one of our guests says it's about time. here is here. and tesla down more than 5% after deliveries fell below,

even below analyst estimates. the stock is now down more than 30% this year. but we begin with today's markets, and dom chu with the numbers. dom, it is tech taking it on the chin. >> it is. it's consumer discretionary particularly because of that tesla trade. check out the dow industrials down by about 450 points, 1% drop. it was down over 500 at one point today. the s&p 500 is at 5198, down 45 points. almost one full percent. at the highs, we were down 39 points and 59 at the lows. a decidedly negative day. tesla is a big part of that story. the nasdaq, down 177 points, 16,219 the last trade there. that consumer discretionary trade, one of the worst performers in terms of sectors today, but not all entirely tesla. if you check out pbh corps, it's

not in the s&p 500, but it gave a full-year forecast that game in below estimates. it's down 23%. but the ripple effects are happening to vf corps, tapestry, ralph lauren and deckers, all of those consumer apparel type names are in the s&p 500. down 4% to 5%. 7% drop for vh. watch apparel and retail on discretionary. and you have interest rates going to multimonth highs. you have to go back to november of this past year to see levels like we're seeing right now. 4.4% was the highs of the session, so the highest interest rates hitting sentiment. and higher mort gage rates are as a result. check out the home builders, down anywhere from 2% to 4%. even mohawk industries, which makes flooring products, down about 3%, as well. so watch those shares. and then we'll end with the

record run that we have seen in gold prices, $2298 or thereabouts. comex gold up on geopolitical tensions and hedge funds moving things around. there's so many story lines, but interest rates and gold a big part of it. >> we'll get to all of them. we begin with all of this means for investors and the fed's path forward, even after the s&p saw its best start to a year since 2019, tackling stocks and bonds. we have max wasserman from miramar capital. beater bokart, chief investment officer, and cnbc achiever,. peter, first, break down the rate expectations for us. is a june cut still on the table? >> it's about 50-50. this morning when i checked, it

was under 50. i think bostic was a voting member and said i don't want to cut until the end of the year. waller followed that up. but putting aside what these fed members are saying today, what's complicating their decision making is the rise in commodity prices and the potential bottoming in goods price inflation. in the crb indecision yesterday, before today's further move in commodity prices, closed at the highest levels since august 2022. gold is making record highs every day. what self-respecting central banker is going to blow off the commodity price move and the rise in gold and say yeah, let's just cut rates any way? so they're being stuck in a corner by markets and the economy, and this commodity inflation that's going to make their decision making even more difficult. >> right. a lot of the discussion along fed members has been around the risk of cutting versus the risk of not cutting. max, what are you looking at in

terms of equities? where are you leaning towards today? >> we've been saying rates will stay higher longer. if the fed is going to make the cuts, it will be towards the fourth quarter. and maybe 50 basis points is what they should be cutting, if they are. we think inflation is still very stubborn in the market, and it's much different to go from 8%, 9% down to 3%. so we think the fed has to stay the course a little longer and get rid of the inflation. again, it's not if they cut rates, just when. the market is reacting because it was overly optimistic. they thought they were going to cut in march. they had these big cuts scheduled for june. now they're starting to put it off. so we just think everybody is too optimistic on the fed. >> right. and the market started the year pricing in a lot more of these rates. peter, one of the concerns has been if the fed cuts, we could create more of a bubble in

equities if you believe there is already one there. where does the risk in your mind lie, cutting too soon or waiting too long? >> i think that's a great question and a difficult needle to thread. the fed created this monster of this addiction of financial markets on monetary policy. so it's not a coincidence that stocks bottomed in october 2022, just as the fed was about to slow down the pace of their rate increases, because the market started to price in, okay, we're coming to the end of this rate-hiking cycle. now they got excited, and not only are rates done going up, they'll start going down, and the fed may start tapering qt. on the other hand, of course, the last thing powell wants to see is a reacceleration of inflation, because he got too cute and complacent and started to cut rates too early. on the flip side, there's a lot of mixed signals in the u.s. economy. we have the jobs number on friday, the unemployment rate,

even though it's 3.9%, that's still a two-year high. and there's still a lot of pockets of weakness, in addition to strength with the economy, that's causing at least from my perspective, the most confused i've ever been in analyzing the economy. so it's tough to say there's one right answer here. i think the fed is just sort of in this hall of mirrors trying to figure things out. you have the election in november, which they don't want to be seen reacting to close to that election with respect to rate cuts. >> very tricky balance. max, when it comes to your picks for the year, if the fed is going to -- we'll see rates higher for longer, how does it change the calculus? one of your picks was microsoft, and last year when we saw bond yields higher, the mega caps were very resilient, because they've been acting more like defensives. they have these massive balance sheets. do you expect that to play out the same way if we see higher bond yields this year? >> i do.

while microsoft is trading at a high, roughly around 31, 32 times earnings, you have to look at the growth potential. this is a complete change in technology with ai and their cloud business is at 26%, and about 6% of that is ai. they havectivision side of the business, which has 200 million monthly active subscribers. all of these game for ai. they'rable to capitalize. so while it's not a cheap stock, it's at the infancy of where ai is going and they're the number one player. we should get a pullback, but we would use that as an opportunity to buy more. we like it a lot and have for a long time. we think they're well positioned for the future. we're not short-term investors. they give you a 10% annual dividend growth. while it might not have the biggest yield, they buy back

stock and are well positioned. >> if you think that sort of the magnificent seven have turned into the fab four this year. you have seen more breadth in this market. peter, do you think the fed is paying attention to what's happening in the markets and some of these frothier valuations, particularly in the tech space, hardware space and the semis? >> well, what we found is the fed pays attention to financial conditions when they're tight and tries to loosen them. and when they get loose, they don't necessarily focus on tightening them. and that was powell, who was asked a specific question in his last press conference, and he sort of didn't even answer the question. i do think that they should be paying attention. the thing about tightening conditions with the financial markets, that's easy. on the other hand, if you are in commercial real estate, trying to buy a house or a car, financial conditions are really tight. the looseness and tightness,

it's depending on who you are. >> we're simply going to be talking mortgage rates on that note. gentlemen, thank you very much. moving on to gold now. my next guest is van eck's emaro. thank you for being with us today. what is gold reacting to today, especially when we talk about rate hike or hold expectations? >> hi. you know, a little bit up today. so it is reacting to geopolitical risks, increased persistent geopolitical risks around the news this morning out of the embassy in syria.

we saw gold climb to almost 2270 this morning. it has been geopolitical risks supporting gold, but obviously expectations of a fed cut, like they mentioned, not if but when. of course, strong support from the central banks around the world, which have been purchases of gold providing what i think is actually a historical shift in the gold market potentially, and emergence of central banks. so that has supported gold here. we think we'll continue to support gold, and there are other drivers that have been absent in this last rally that we think could propel gold much higher from here. >> talk about the inflation side of this equation. we had pc numbers last week

showing inflation, some improvements but still remaining above the fed target. how is that playing into the price right now? >> i think it's sort of a win-win situation for gold. of course, everybody is watching what the inflation numbers are saying and how that relates to what the fed's going to do. but ultimately, inflation, sticky, persistent inflation, off the fed target. i think it's very gold positive, regardless of fed cuts or not. higher inflation is historically positive for gold. so it's win-win when it comes to inflation for gold. >> we've seen that gap really narrow in march. do you expect that to continue going forward? >> yes. we have -- there's been over the last couple of years, the gold equities have lagged significantly. we have been waiting for the reversal of that trend, and it

looks like we finally got it in march. the stock's up 20%, when gold was up about half of that. so that leverage, the reason you own gold equities coming back, and the equities catching up with gold, at a time when gold is, you know, making new all-time highs every week since the first day of march. so we see a lot of opportunities here for the gold equities to continue that re-rating and catch back up to gold, which is why we strongly recommend that investors look at gold equities when they consider exposure to gold as an asset class, not just the bullion. >> i wonder how you see the china piece of this? we've seen improving economic data, the world's second largest economy. is this priced in? >> not probably fully. there is several angles to china when it comes to gold.

china is the largest consumer of gold. >> right. >> of course, i just talked about central banks and leading that net purchaser with consecutive month-over-month purchases of gold in recent years in china, in '22 and '23. we expect that to continue. we do expect that trade to continue of net purchasing by central banks globally, not just china. and then there is the consumer aspect. a lot of the strength we're seeing in gold today is not coming from the west, it's not coming from investment demand, which has been persistently declining of the last couple of years, it's come trg the east. investors there, because of the lack of better options are investing in gold. a big pop in the chinese economy are showing it would be very positive for gold, as well. like i said, considering they're

the largest consumer of gold. >> it would be bullish for gold. chinese consumers would continue to buy it. do you think if the economy is improving, would they have other places like the stock market to hold money? >> perhaps. but i don't think it goes away too soon. they're buying physical gold, coins, gold beams, young people, as well. they're buying anything they can get their hands on when it comes to gold. i don't think that uncertainty and volatility goes away so fast. and two, they're buying jewelry. when the economy improves, people buy more jewelry, provides a level of support for gold prices. >> thank you so much for being with us today on the gold trade. coming up, tesla is having its worst day in a month after posting a rare drop in deliveries. we'll tell you what is behind that incline and whether investors needto worry about the road ahead. tesla shares down 4.5%. and oil is hitting the highest level since october, with global

supply concerns back in the spotlight. we'll get the latest forecast, now. and as we head to break, here is another check on the markets. the dow is about 40 points off of its session lows. as you can see, it is now the laggard. the ten-year above 4.3. "the exchange" is back right after this. encore energy, america's clean energy company, now in production in south texas. energizing america with reliable and affordable uranium for nuclear energy fuel from our environmentally friendly extraction process. encore energy.

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crude hitting a six-month high today, hovering just below $85 a barrel right now. some of those names have gains, geopolitical tensions, supply concerns, all part of this narrative. joining us now is francisco blanch, strategist at bank of america. thank you for being with us today. energy is a bright spot. what's being priced in here? >> well, we have seen really a lot of the recent price trends flip on their head. remember, we came from a very high price in 2022, down to around $70 a barrel the second

half of the year. since then, we've seen stability in prices, coupled with those increased deployable tensions you referred to, they're starting to firm up the outlook for oil. plus, we have low inventories, and economic activity doesn't seem to be decelerating by much higher interest rates. so things are looking up, and i think the last few days, the tensions in the middle east have really played a role in pushing prices higher. >> so the geopolitical tensions are playing out on the supply side. talk about the demand side. i was just talking about china's economic recovery, at least the data in recent weeks shows the economy may be picking back up. is that priced in yet? >> i don't think it's very much priced in. i think the -- it's not just china, by the way. we are seeing a recovery in asian export growth and pmis and

other oil data points suggest that things are picking up. and also remember, it's impacting the demand side. we are now traveling much longer routes around the world, and ships are having to move faster, because now you can't go through the suez or the panama canal, so you have to go through the cape, so that takes longer. so we have much longer routes at faster speeds, driving up demand considerably. now we're thinking consumption growth is going to be a lot firmer in 2024. >> do you expect that demand to hold up, especially when we talk china numbers? are you seeing this is an uptick or more of a blip? >> we think this is more sustained. i think it's more sustained and one of the challenges that the market will likely face and will some come to it is the expectation of a june rate cut. followed by two more cuts into the second half of the year.

so i think we are back into this mode and this battle royale as we called it before between oil and money. we see oil prices fighting the fed once again. we'll see. it's been an interesting battle between opec and the fed. >> we just spoke at the beginning of the show, especially markets are reflecting some skepticism about that rate cut in june. i think it was the beginning of the show said that's about 50-50 right now. if we don't get a june rate cut, what does that mean for the price of oil? >> coming into the summer, it doesn't mean a whole lot, because we still expect it to be a bumper travel season. people will be driving and flying a lot. and supply is tight. coming into the end of next year, the end of the year into 2025, things start to loosen up a little bit. we have a fair amount of supply growth coming out of brazil,

canada. we also should see maybe not as fast growth in the u.s., but we should see some growth in the u.s., and hopefully that comes to the rescue. there's some refining capacity coming online, particularly in nigeria and mexico. remember, there's been lots of issues in the past few months, including attacks on russian energy infrastructure with ukraine and drones. they have also used t-- attacke diesel and gasoline fuel. again, we think it's more of a six-month blip that prices are firm. not so much into '25. there's more supply coming, and eventually the energy transition will be to an erosion of demand trends, as well. >> so do we ever see it back above $90 again? the last time we saw that was last october. you talked about it's been a lot more volatile, but we're see thing period of relative

stability, even with all the geopolitical tension and supply you were talking about, are you seeing it more stable over the next few years? >> well, we are only $1.50 away from $90. so we are around 24% right now, so we could easily break that. so i think medium term, we see stability. the long-term view is oil will be a $60-$80 a barrel commodity. part of it is this big question mark around the transition. we are supposed to move away from fossil fuels. will we or will we not is a different matter. for the time being, the market is not going to price a shortage when opec is close to 5 million

barrels a day. could that happen medium term if the investment falters and demand doesn't come down because we don't shift away from internal combustion engines? potentially. but i think they're starting to price that in. for now, we see stable price at around $70. >> we have seen some of that shift to evs. francisco blanch, thank you for being with us today. speaking of energy, it could be the story of the summer. according to one chief investment officer on wall street, he's looking at three large-cap names, including chevron, which has lagged the broader market this year. scan the qr code on your screen for the full list. coming up, the fed's cut timeline keeps getting pushed back, but our next guest warns the biggest risk is cutting too early. we'll debate that, and as we

head to break, here is a look at some of the names bucking the trend, hitting new 52-week highs, including kroger, dow, the dow drifting back towards session lows. the russell 2,000 is down 2%. "the exchange" is back right after this. ♪♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash 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. (sirens) [due at target in 5!] copy that. make a hard left down the alley. network's got you covered.

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welcome back to "the exchange." let's get to the markets right now and do another check. the dow is near session lows, down more than 500 points, almost 500 points at the moment. the nasdaq composite still down by more than 1%. and the russell 2,000, down 2.2%. trump media shares rebounding from yesterday's 21% drop after the company reported a net loss of $58 million on revenue of just $4 million. shares are up about 4% since their public debut a week ago, climbing as high as $79 a share. it should come no surprise, this is incredibly volatile.

a new class of stocks are acting that way, but is higher today. bitcoin as well, it is calling 6%. now trading at around $65,000 after posting its seventh straight monthly gain. down 11% from its all-time high in mid march. so today, acting perhaps more like risky, speculative tech stocks. gold higher on the session today. we'll keep an eye on that. let's get to tyler mathisen for a cnbc news update. >> deidre, thank you very much. at least 29 people have died at a nightclub in istanbul. according to city officials in that turkeyish town, six people have been detained as part of the investigation. the exact cause still unclear. the department of transportation announced a new safety rule requiring the largest freight railroads to have at least two people operating their trains. it comes more than a year after

a train derailed in east palestine, ohio, spilling toxic chemicals. legislation to address the issue remains stalled in congress. pop star taylor swift is now a billionaire. forbes released its 2024 list of the world's billionaires today, and swift made the cut for the first time with her estimated $1.1 billion fortune from her music career and real estate port portfolio. elon musk and jeff bezos held the other top spots on that list. i looked hard, deidre, i didn't find my name. >> it's coming, tyler. i want to hear about taylor swift's real estate portfolio. still ahead, salesforce is up 50% over the past year, benefiting from the ai boom. we'll speak to the executive overseeing all of the company's ai efforts, including today's

broader rollout of its einstein co-pilot. and check out health care shocks after the biden administration did not boost payments for the medicare plan, as much as hoped for. humana is getting crushed the hardest today, falling to its lowest level in four years, since 2020. we're back after this.

welcome back to "the exchange." markets lower across the board with the dow the biggest laggard as the street adjusts its rate cut expectations following stronger than expected data. the ten-year yield touching above 4.4% since before november. so how should you position? joining with us her trades is victoria green, g-squared private wealth cil. and peter bookbar is back with us. and our steve liesman has what it all means for the fed's next move. steve, let's kick it off with you.

>> deidre, thanks. after ignoring the bond market, stocks are declining in tandem with rising bond yields. so what's bugging the bond yield? there is slowing progress on inflation. take a look here. between october and december last year, core pce fell from 3.4 to 2.9, a 34 basis point decline, but only 16 basis points since december. over that time, market-based five-year inflation have rounded it back up and now stand at 2.38. the market's confidence in a june rate cut has not disappeared but weakened. traders put the probability of that cut at 75% a few weeks ago, now around 59%. cuts are still on the table, and solidly in the fed and market's forecast.

the cleveland fed said today that she is -- thinks it's appropriate to cut rates later this year, and the inflation picture has not changed much. that's because she expected inflation progress to slow. it remains likely inflation will decline to the 2% target over time. yet she's still not confident enough to cut now without a few more months without improving data. all this comes with improving forecasts for first quarter gdp and growth. but stocks seem to be coming to grips with the idea that declining inflation progress and rising growth prospects undermine that confidence in when those fed rate cuts might begin. i'll have a chance to talk about this tomorrow with raphael bostic, atlantic fed president. >> i know you're going to mon your daley's fireside chat. let's get to our guests now. peter, what is your reaction to what we have heard so far and

what do you expect to hear from mayor daley? >> daley's important, because she's also a voting member. and there's one thing about powell is he likes consensus. so now we have heard from bostic, we've heard from waller. i'm assuming bowman is a hawk. powell spoke. so i find it hard to believe that daley will deviate that much from what they have said. june's far off. so there's no reason to commit right now to what you want to do in june. so i think she'll remain very non-committal with respect to her commentary. >> victoria, let me ask you something. we haven't discussed, what if rate cuts aren't all that important, do stocks benefit more from a healthy economy than they do looser policy? is that being forgotten in today's trade? >> a little bit, yeah. we're going to get earnings, jpmorgan kicks off next week, and if the focus is on earnings and we have solid economic

growth and earnings growth, and proficientis expectations are rising, stocks can overcome any cuts or lack thereof. right now, we're in a dead period. nobody is reporting, so everything is up. so it's very heightened. obviously, all eyes are on unemployment friday. it's potentially bad news is good news. if we have bad unemployment stats, that balances out sticky pce. everybody can get their fed bingo cards out, data dependant, patient, weigh the pros and cons. we're not going to see a huge policy shift unless we really get continued acceleration of inflation, and deflation goods trend, we've seen that help with inflation. but now commodities are on the rise, so we have to watch the good side. but i like that. there's a lot to like on the economic front for stocks that are in the business of selling things.

>> right. even on the earnings front, it was the magnificent seven that carried the broader markets all of last year, but we have seen more breadth this year. i saw a chart that showed the s&p 500 x the magnificent seven, we're looking for better earnings out of them than the biggest mega caps themselves. what does that mean for the rally? >> it's fantastic to broad b out. it was always a problem, but the magnificent seven is breaking up like the beatles back in the day. it may not exist anymore. specifically with the tesla issues, very much concentrated on evs and vehicles. so it's great. there's a lot of profit possibilities. if you look around, the value trade, the cyclical trade, energy, industrials, financials, those are working a little bit. we always have risks that can pop up. will regional banks be an issue? will we care about the debt level? none of that has mattered yet.

if a company can produce earnings, especially if the company says we're going to make a little more money, that's great. the one area that will struggle is small caps which tend to be more levered. you know, that's a drag on a lot of them is the higher rates, and that's playing out with the russell 2,000 today. >> you can argue that the mag seven are the fab four now. that aside, peter, victoria brought up these risk factors that the market has largely ignored over the last few weeks and months. we saw a great first quarter. any of those things worry you the most? >> well, as i said earlier, the economy is not strong. there are pockets of strength, but there are pockets of weakness. you have the auto sales, which were coming in today, they're still running well below where they were precovid. you have the pace of existing home transactions near a 30-year

low. you have lower end consumer that is in its own personal recession. whereas higher end consumers are doing better. if global trade that is sort of eh, based on what we have seen in the economies in your and asia. manufacturing, yes, we're beginning to see some embers of hope, which i hope will continue, but we're still in a contraction when you look at it globally. so it is not an easy picture to really glean. and it's not strong. there are pockets of strength and pockets of weakness here. and i think that's -- and what the fed is going to do is obviously going to complicate this. i think higher for longer is a real thing. and while we throw it out here in the financial markets, it really matters if you're a borrower. if you have debt coming due this year on a loan that was priced pre-2022, you're in trouble if you don't have more equity or you don't have free cash flow.

that debt is replacing from probably 3 to 8. so there's still a lot of pain to be had from interest rates staying higher for a longer period of time. >> peter, you came full circle there. thank you. victoria, thank you for being with us, as well. still ahead, tesla is one of the biggest drags on the s&p today, posting a big miss on deliveries. what's next and how the competition is fri? at cinup.ing

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take a look at tesla shares, down sharply after a rare year-over-year drop in deliveries. phil, mask warned us of slower growth, but this was slower than anyone expected. >> way slower than what people were expecting, deidre. and a number of factors in the first quarter, the issues with production out of the factory in berlin. china has become a much more competitive and slower ev market than what we have seen in the past. so when you look at the

deliveries for tesla in the first quarter, coming in at just under 387,000 vehicles, 70,000 viewer than analysts were expecting in terms of consensus, and down 8.5% compared to the first quarter of last year. the question now, what happens with full-year deliveries? at this pace, they come in at about 1.5 million. they delivered 1.8 million last year. tesla has yet to give official guidance for what it expecting to deliver for the full year. other auto sales in terms of the first quarter, rivian, q1 deliveries, 13,588 deliveries. and then the three asian automakers, big into hybrids and reaping the benefits. toyota up 20.3%. honda 17.3%. and general motors, q1 sales declining 1.5%. keep in mind, there was a big

drop in fleet sales in the first quarter, down about 20%, 22%. that's one reason why the sales overall were down 1.5%, with ev sales coming in at just under 16,500 that's important, because deidre, they're ramping up into the battery cell production. that will be crucial to ev sales this year. and one other note, nissan, up 7.5% in the first quarter. >> phil lebeau, thank you very much for breaking that down. coming up, salesforce lower today, but up more than 14% this year. we'll talk with the ceo of ai division how they're expanding those capabilities. that's next. in production in south texas. energizing america with reliable and affordable uranium for nuclear energy fuel from our environmentally friendly extraction process. encore energy.

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♪ equities still near session lows and we had san francisco fed president mary daly speaking in a fire side chat about the economy. let's get over to steve liesman with the headlines. steve? >> hey, deirdre. mary daly joining the chorus of fed folks being in no purry to cut rates. inflation is coming down, but it's bumpy and slow. there's no urgency to adjust the rate right now. three cuts she calls reasonable baseline but not a promise as the fed has to be prepared if

inflation proves to be sticky, therefore standing daly is the right for the moment. there's a path where interest rates start to adjust this year, just not there yet. there's a real risk, she says, of cutting rates too soon. really echoing what we heard from over folks, including waller and meser this morning. if we lock inflation in at this level, she says, she calls a toxic tax. finally, she says, steady in the boat is the right mantra for now, deirdre. >> as you said, steve, kind of joining the chorus. we're not seeing much of reaction in markets at the moment. thank you for that. shares of microsoft are down 1% as the prospect of higher rates for longer pressures tech. microsoft announced yesterday that it plans to split up its teams and office bundles following scrutiny from european regulators. analysts say the move will be incrementally positive for zoom

which makes a rival video platform. speaking of salesforce, the company revealing today it is expanding its einstein co-pilot capabilities to its tableau platform and the ai-tech will be widely available in the next few weeks. sorry we can't be in person in san francisco this time. what are you seeing? we're certainly seeing this pullback in some of the tech names, some of the ai winners today. but when you look at your customers and what they're using einstein co-pilot and these generative ai tools for, do you think that spending is going to only increase in these products in the year ahead? >> absolutely. thank you so much for having me. it's the customer response to our ai products and platform has been tremendous, whether it's slack ai or all the service users and sales teams, marketers and commerce managers using einstein. we're really seeing tremendous productivity gains.

that's really what's inspiring customers to go from pilot to production this year. and so i think it all comes down to business outcomes and customers are willing to spend where they see a return. >> are they spending -- is it additional spend on einstein co-pilot or offering it to them as part of their existing package right now? how are you guys monetizing? >> so, we heard a lot of different types of requests from customers. we're adjusting that demand really through two ways. one is we have a new einstein 1 edition for sales and service and for our industries that allows our customers to get everything they love from salesforce, including einstein ai, data cloud, slack, other features and functions all packaged together. and then for those customers who want to specifically purchase ai, we have add on seats einstein for service, einstein for sales, einstein for platform that the customers can easily buy. >> obviously salesforce serves a wide range of industries. which industries are seeing sort of picking up quickly to the generative ai tools?

>> you know, the amazing thing, deirdre, is that we're seeing it across every industry. financial services companies, from banks and wealth management firms, mortgage, insurance, health and life sciences, pharma companies, public sector. it's really demand across the board and it speaks to the power and potential of bringing ai and data into every organization. >> how is that affecting their efficiency? earlier on in the show we were talking about the upcoming earnings season and how we're going to see more companies outside of the mega-cap, see better earnings, the breadth of this rally and earnings trend will broaden out. do you see on your side this helping efficiencies in productivities at companies? >> absolutely. i mean, i think when you bring data in and unlock kind of previous silos and trap data in every company, it really unlocks tremendous possibilities. and so, we look at service representatives who are now able to answer questions much more quickly because the ai is out

mating the drudgery and the mundane work of having to look up knowledge articles. now customers are seeing faster resolution times and customer satisfaction scores go up. >> how is that impacting efficiency and productivity at salesforce itself? i remember a year or few years ago activist investors were demanding profitability. you have come some ways for doing that. what's the opportunity for generative ai to further improve margins? >> one of the things i appreciated most about salesforce is how much we adapt our own products. all of our sellers are using salesforce everyday, customer support and customer success team. our own teams have been the very first to test out, give feedback on and adapt everything from einstein gpt for sales, account summaries, generating emails to customers. >> yep. >> as well as on the service side, service reply recommendations and case summaries, itself. >> clara, thanks for being here.

good to see you. i'll see you back in the bay area. one of inaugural change makers. there's still time to register. women transforming businesses. there's an event in new york city on april 18th. to request an invite, scan the qr code on the screen or go to cnbc events.com/change makers. that does it for "the exchange." ow lchafr istyler mathison for "perun" teth quick break. stay with us. (sirens) [due at target in 5!] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead.

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♪ good afternoon, everybody. welcome to "power lunch" alongside deirdre bosa, welcome. nice to have you here on the east coast. i'm tyler mathisen. rough start to the second quartercontinuing today with the dow down about 479 points right now. unitedhealth, a huge drag on the index, costing the dow more than 200 points all by itself. changes to medicare rates weighing on the health insurers today. we'll have more on that coming up. big tech also tumbling today. the nasdaq down more than the s&p on a percentage basis. and the so-called speculative tech trade is getting hit particularly hard. it's a bad day for cathy wood. her arc innovation fund is down 3% and tesla, one of her biggest holdings, and its falling after delivery numbers disappoint. we also have coin base fallin