good afternoon everybody, welcome to power lunch. i am tyler mathis, i am glad you joined us.

when is nelson. the challenges from disney are far from over. we look at how the company moves on from here. we will hear from rely capitals, david einhorn getting his take on the markets, the fed, and much more. before we get to all that, let's check the markets. they are bouncing back after yesterday's losses. the s&p 500 is up about one third of 1%. the nasdaq is the upper former. intel has fallen 7% after saving the foundry business, after they lost $7 billion in 2023. let's start with disney and the high-stakes board vote. the results, we have just gotten them in the last hour. the media giant wins a proxy fight against nelson. the shares are down about 2% on the day. they are sliding since the results came out. for more, let's bring in doug. it is good to have you with us. >> thank you. >> what does disney need to do now? >> they need to not deal with

this anymore. i'm sure that's a relief for management. i have actually been surprised at how much i spent on this. i do not think that much of a chance of gaining traction. now they are back to running the business. they still have the same problems they have had before, which are industry problems. the director consumer streaming is economically inferior to the bundle model, which is going away. and to try to figure out how to manage that. >> did they win even when they lost? the >> i don't think so. and disney did some things that they would have done anyway. they were going to come back and cut costs no matter what activists were saying. he did that. i don't think that what he did

change the way they are thinking about the business? systemic did he have anything to do with the rise in the stock price of 58% since the low from october and dirty percent so far this year? do you attribute any of that to the possibility that he was going to prevail here and hasten whatever transformation is going on? >> no, i don't think so. i have talked to a lot of investors. nobody expected that he would win. disney announced a lot of news on the last earnings call. it was mostly good to very good across a whole range of things. there was the sports comment some updates on the animated film slate. there is also epic. they gave guidance for the first time and i don't know how long. there was a lot of good news on the call. to the degree that they had an incentive to jam as much good news as possible because of

this proxy fight, that may have bumped the stock a bit. all that stuff was going to happen. >> they still have to deliver. you talked about the industry problems. there is a problem that is unique to disney, which is a major reason that actors were going after the company, succession. are we any closer to a plan? >> not apparently. i think they had some legitimate criticisms of disney, particularly things that happened in the past. the problem is, how do you replace bob? it is very difficult for multiple reasons, not least of which is bringing somebody in from the out side into disney, which has a very, strong, unique culture. it is risky. now you to validate internal candidates. we don't think there's anyone to step into the role, you have a problem. is mike there have been more development. as some names have been bandied

around, like walden, mario, notaro, are you encouraged by any of the names? >> they could be another bob, right? >> listen, notaro has run espn. that is its own unit, separate from the content creative side of disney. i would have a hard time seeing them step into the role. it is just not his background. somebody like dana walden, possibly. she has not been at disney for that long, right? even there, it seems like a bit of a stretch. there is nobody that rises the mind the way that tom staggs did back in the day. >> let's talk about the stock and where you see it heading. you have a market perform

rating on it. the price target is below where it is today up $100 per share. can you untangle that one for me? >> yeah, look, in the low hundred range, this dock is trading about where it ought to be, given all of the developments that have happened. you look at the secular challenges they face in their businesses and the good news they have had recently with the cost-cutting. i think, we got so much good news in february that, there might be a bit of a lack of further good news for a while. they said everything good that they possibly could have said. obviously, look, they have movies come out and be successful at the box office, that helps things. they have inside-out 2 coming in june. that will probably do very well. they have deadpool coming in july.

that is not a disney family friendly film. >> inside-out is. you also have mo on a 2, which was a surprise from the call. >> another family favorite. let me ask you about something else in the media's pace. we got some reporting. paramount and a potential, exclusive deal with sky dance. what kind of implications with avenue across the landscape? >> i mean, the sky dance angle has been talked about for a while. a lot of it comes down to whether it is a deal for all of paramount. if it is just part of it, you are swapping one majority controlling shareholder for another. i don't know that that really changes anything from the paramount shareholder perspective. it might, depending on what they do with the assets. it does not immediately change anything. i think the problem remains that there isn't, everybody has the same problem. they spent too much on content

and streaming and then hey reduce with their spending. it does not make it appealing to go out and spend a lot of money on a content asset right now. paramount will have to manage through this without getting a way night rescue. we appreciate your time today. let's dig deeper into disney's futures. we are looking at the streaming landscape, we have the chairman and ceo and the former cochairman of nbc entertainment. we did expect this result from the disney board. we talked about some of those industry issues. that is profitability, aside from netflix in the space. what are you xpecting in the year ahead? >> i think the strikes affected the production pipelines, and the cutbacks that so many of the big companies made in content investment will end up

becoming a problem for them. if you want to sustain your subscribers or members, and you want to keep a growing audience, you need to deliver them original content to fuel that machine. i think you will see, during the latter half of the year, a lot of reinvestment in content and commissioning of more original productions. i know a number of those platforms were ood on the side of the strike, having unlocked actual cash for them. i think they need to look at how they will utilize cash to get more original content to sustain subscription and member ambitions. you have also watched as a number of the platforms started to cross license content to each other, which is another way for them to be making money. you have to have originals in

the pipelines to be able to grow the rerun value down the road. >> that's right, original content is expensive. you talked about licensing and the introduction of the new programming over here. how does that shakeout in profitability? >> clearly, there will be companies that are better at it than others. you are watching a company like amazon that could potentially have billions and billions of advertising revenue because they are directly advertising in the store. we have looked at the opportunity for transactional advertising. there will be a lot of money coming in. in turn, they will want to invest in other categories. they will want categories like food. they will want categories like lifestyle and categories like sports to drive the advertisers, not just subscribers. i think it will unlock a lot

more money into these systems that have not been fully recognized, were earmarked in terms of wall street. >> we have one saying the streaming bundles are the future. let me get your reaction to that, in light of the sports many bundle that was announced in the last month. will there be news bundles or a news bundle red or blue, for those who lean left or right? will there be a women's many bundle or whatever? >> are we re-creating hulu? >> we are re-creating cable. we are going old school. >> there is a huge regulatory issue. i think there would be a lot more consolidation and mergers if we weren't looking at the screen being those seven

companies or these companies controlling 90% of what the world is saying, and certainly what americans are seeing. there is a lot of regulatory, you know, headache and concern about further mergers. those mergers probably need to happen for these companies to really be successful and efficient, and to deliver. they likely will not be allowed to merge, they will do these virtual partnerships. will we be in a situation like disney and comcast just were about who will buy out the other piece? >> exactly. >> if it works, they want all of it. someone will be annoyed that they are partnered with their friends and/or enemy. it will be interesting to see. a >> as a consumer, i am annoyed. i see this as the return of the bundle. if you like the price keeps

going up. you to sign up for more and more. if the mergers, this consolidation cannot happen, what is the net impact for the consumer, do we just end up paying more wax >> it is incredible how much the pricing has gone up even though he thought it would go down. there are some alternative services, like youtube's cable service is less than what my cable service was. but to have it all in one place, i am a comcast subscriber. i love the platform. i love talking to my remote. i love the interface, i love the access to all of the content in one place. it is expensive. i also add on my other subscriptions. i am more than where he was before. i look at certain outlets and places that i have service bundles with, like apple, and the amount of money i spending across my music, news, cloud, and more. it is starting to rival cable. >> you are saying how i feel.

i feel oversubscribed in my life. i am totally oversubscribed everything. whether is apple music or spotify, or netflix. we will go over it. >> it is turning me off. they keep throwing us off. you go back. it's like i just reentered my password yesterday, what is going on is challenging. :i will talk to tyler, there is a place where you can take off and unsubscribe. >> any therapy. >> lie on the couch. it is good to see you. be sure to catch our exclusive interview with the disney ceo tomorrow at 9:00 a.m. eastern time on the treet. you will not want to miss it. it is oceanside's own, bob. we are sitting down with david einhorn right after this a short break.

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welcome back to power lunch. let's get to scott at the investment conference across the way in new york city. we have an exclusive interview with david einhorn. hello, scott. thank you for being with us today. your 20th presentation, you have been a loyal supporter of this event. >> it has been a fantastic thing. it is a great cause. he gives money where it is needed, initially with the pediatric hospitals in new jersey. and later, into research. it has become like a new york institution within the community. i feel grateful every year to be invited to be part of it. >> we are proud to be part of it as well. >> the idea today as the european chemicals company based in belgium. we will see a movement on the pink sheets.

it is thinly traded as people look at it. how large of a position is that for you? >> we own a little bit over 5% of the company. >> what attracted you to them? >> we have a habit of looking at spinoffs. that has been a core investment strategy for us for many, many years. we have likely embedded invested in 50 or 60 of them. it is the highest returning strategy we have in our portfolio. it is somewhere approaching 50%. we can identify, only if you each year, where we think they are mis-valued. it is hard because there are larger disclosures. people don't want to bother to read. people don't like it because they like the other part of the business. you get a new shareholder base. sometimes you get a very attractive entry price. >> you did cheat tis a long position. you did not reveal it then because you are still accumulating it. is it different than what you

revealed today? >> that is the position. we started trading in early december. we started buying it then. it had a bit of a spike. we stopped buying it for a little while. we finished accumulating it. we stopped buying a few weeks ago. >> you said 5%, it is a top- five position for you? that is what you suggested it would be. >> that's right it is a top- five position. >> how often do you purchase stocks in the current market? >> all the time. i show up every day figuring out what stocks to buy. most days i am not successful. it is exciting when we find new opportunities. >> you did say it is a great time to be a value investor. at the same time, you have a view about the value investing in history, what you suggest is dead. can you elaborate on that? >> the value investing industry and value investing are two completely different things. value investing industry are my former peers that were paid money to manage money for other

people. they spent their time researching stocks and trying to identify undervalued companies to buy. many of them operated in institutions like mutual funds. they used to be paid a lot of money to identify these talks. with the shift to indexing were trillions of dollars has been redeemed out of those strategies, those people have lost their jobs and their assets under management. there are a lot fewer people looking to try to purchase undervalued companies. for the few of us that are still doing it, it is a unique time. it is a much better situation than it was when there was all of this competition. that being said, you have to recognize how the environment has changed in how markets are functioning, and what it means to be a value investor. value investing, this is the idea of buying things for less than they are worth. because there are looking at so little money pursuing strategies of trying to determine what things are worth , and buying them for less than they are worth, there are many

securities that are radically mis-valued and undervalued. you are able to identify just a few securities per year, like this, the new one we were presenting today. it is so radically undervalued because there is not a professional industry trying to identify and purchase these things. the opportunity comes to us. we can purchase a company of this quality with a double-digit dividend yield while we wait for the business to improve their operations. >> however ou adapted to the new environment that you articulate? some may have thrown in the towel and taken their ball and gone home. i have done this a long time, i don't need to do this anymore. you are not one of them. you are looking for value stocks every day. however you adapted? >> it was very hard. we did not realize what was happening for the first few years of this transaction. we were doing what we were doing before and it was not working. we had poor investment years until we eventually sorted this

out. around 2019, i got the handle of what was going on in this dynamic? what we cannot do, if the business before was trying to figure out what the long only investors would purchase six months or 12 months before they would. if we can purchase the company at 11 times earnings and the earnings could be 50% more than people thought, you would realize that the people in the long only funding would realize this on every call. yet analysts covering everything and they are paying careful attention. when things came out better than expected, not only would you get the return from the 15% growth in the earnings, you would get a re-rating of the multiplies these institutions would come in and purchase the stock. our business was figuring out what those people would do six months to a year before they figured out they were going to do it. we would then bring that along. if those people don't have any money, because they are all in passives and index funds, companies can announce better results and nobody cares.

we couldn't buy things at 11 times, and hope the earnings are 50% better, and hope we get a 14 multiple at the end and make 50% over 18 months, that opportunity is not there. where to buy things even cheaper. the idea like we have today, we are buying a stock right now that is below seven times earnings. it is paying a 10% dividend yield. it does not matter if the other investors figured out, because we are happy to collect a 10% if that is all we do. you have declared the markets fundamentally broken. that is a terminology you have used. obviously you have adopted good policies because you're coming off of a strong year with 22% net of fees. that's one of the best years you've ever had. you have made the move, but you suggested to me, because you think the markets are fundamentally broken, that means fewer companies are going public, right? that's one of the ideas that you have, this change has reverberated through the whole market structure. >> absolutely. when i say that the market is

broken, what i'm saying is, there is not enough money that is being dedicated to investing , trying to identify undervalued companies and reward companies with new capital that have good opportunities for growth, and to punish companies that don't have such good situations. the professional industry of figuring this stuff out has been largely eradicated. the main problem that comes from that is, you end up where index funds, and other strategies, they will purchase the most overvalued thing in the index. new money comes in over evaluation becomes more overvalued. undervalued becomes more undervalued. the values diverge from fair value. there are other ramifications of that. once you have the largest shareholder in every major company be a passive fund, the shareholder activism becomes nearly impossible to improve corporate governance. if you go o one of the index funds and you say, i have an

idea for how the company could improve that would make the stock price go up, they look at you and say, well we want all the stock prices to go up. they don't have anybody in the proxy departments that even know how to value a company, let alone vote index shares. another thing that has come is the ideal market. the s&p is making highs. we are in a favorable economic environment, yet where is the lpn market. why can't companies go public? the reason is, companies did these things called roadshows. they would come to these managers and they would say, i am the mid manager would you like to purchase my new stock? if the person is not there or they don't have the money, there is no one to buy the stock. you have a closed ipo market even in the face of really favorable market conditions. >> out to talk about other positions you have in the market. one of them surprised me when i read one of your letters, which suggested that you stayed committed to the turbulent regional banking industry and

you bought more new york community bank in the fourth quarter. i guess i sat back and said wait a minute, he is able to be the guy saying no, the regional banks are the ones with all the problems due to commercial real estate. then you want new york community bank. why? >> when they did the acquisition of the failed banks , that happened roughly last march, we bought all the regional banks that were the purchasers of the failed banks. we thought they would get really good discounts. we did it several times. all of them, except new york community bank works. when you're community bank came out with their results, and put their charge, we just sold all the stocks. we exited at a very small loss. >> okay, see you are gone from the stocks? in terms of the market overall, you talked about bubble basket of names and names that are gone parabolic due to various trends at that particular time, now the focus is on ai you are

looking at the presentation today. steve cohen was on the network today saying this is not like 1999. there is no bubble in the market. ai is durable. that is the word he used. it would lead to greater productivity and efficiency. do you agree with that? what is your view? >> i don't think we are in a bubble. we covered the bubble basket stocks in the first quarter of last year. by now, all of the shorts are idiosyncratic ideas based on situations with a particular company involved. we don't have any basket short positions. >> you are willing to short stocks? that has been a meaningful change, why? is he make it adds a lot to the risk-return profile. shorting provides cash for you when the market goes down. everything goes down and you have the money to invest in other things. we add value by creating shorts where they go down. >> i did see that you have a position in the gld. is that current? >> we talked about gold for many years.

you talked about gold before it was fashionable to be talking about gold. we keep going up. >> we own a lot more gold. we own physical bars as well. gold is a very large position. >> wanted to make it o large? >> there is a problem with the over monetary policies of the country. both policies are systemically to loose. the deficits are a real problem. this is a way to hedge the risk of something not so good happening. >> you think the chances are high of something good not happening? >> it is a question of when. when we don't know. in terms of the idea that the fiscal situation is not sustainable, and the monetary policy is a low in order to support the fiscal situation. do you think these are self- evident? it is clear to me that this is a math thing. knowing when this is, i don't know, it is reflexive. as long as the market is confident, everything is fine. the minute that changes, there

is a real problem. >> let's talk about rates. what will the fed do? how many times will hey cut this year? >> fewer than they are priced right now. >> fewer than three? >> sure. >> is there a chance to do anything? >> there is a chance, inflation is re-accelerating. >> there is a chance they could do nothing? you think they could hike? >> that seems unlikely. i don't think they will want to do that before the election. they seem very politically motivated to try to keep the president in power. it is a rare opportunity to sit with you. i appreciate you. that is david einhorn, exclusively here at the conference. back to you. >> that is fascinating for me, the part we talk about index funds and how they are changing the market structure. to watch scott's entire interview with mr. einhorn, check them out online and watch the whole thing. another famed investor is

joining cnbc today. they talked about mr. cohen. (christina) with verizon business unlimited, i get 5g, truly unlimited data, and unlimited hotspot data. so, no matter what, i'm running this kitchen. (vo) make the switch. it's your business. it's your verizon. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there.

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we are watching the yield on the ten year closely picking at the highest level following the report this morning and ahead of friday's big government job support. let's go over to rick for more on today's action.>> reporter: yes, we had a big, wild day in treasuries. it started out as you pointed out at emily:15 eastern, 140,000 jobs. with the biggest prices on services, as you see on the chart, that is the lowest level of 53.4 on prices paid since march of 2020. and, if you look at the 10 year note yields, you can see the three big moves. the jobs come up and up, up goes interest rates, a runaround 10:00, prices paid, rates go down. a little after noon, [ indiscernible ] sounded off both rates moving down again. maybe the most important aspect

is, if you look at good friday before the data points came out, we are still significantly higher. i still contend, it's all about inflation and how it is not moving down fast enough. if you look at year-to-date, we closed yesterday about the breakout levels of 4.33%. we could retest that if we stay above it on a weekly closing, look at rates moving higher. back to you. let's get over to christine for a cnbc update. thank you. the world's biggest chipmaker has suspended work at its construction site since taiwan, since the largest earthquake in 25 years rocked the island early on wednesday morning. it killed 9 people and stranding about70 minors in two rock quarries. the israeli prime minister's calling for ew elections in september amid widespread protests.

they say the election will serve to renew public trust in the government. a longtime rival of the prime minister joins a government after the october 7 terrorist attack last year. stephan diggs is reportedly on the move, trait is being finalized to send the four-time pro bowler from the buffalo bills to the houston texans in a deal that could also include draft picks for both teams. he will now catch passes with the reigning rookie of the year, cj stroud for the texans. i will pretend like i knew all of the names, but i don't. >> he did very well. is we get a break, a quick power check on the positive side, aerospace is trading higher after the spinoff from ge. on the negative, also beautys i tumbling on disappointing sales. that is your power check. we will be right back.

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higher rates when the market. concerns about inflation linger. the son tells cnbc, he sees only one rate cut and he doesn't think will happen until the fourth order. billionaire hedge fund manager says they think it would be difficult for the fed to get inflation back down to its 2% goal. he is expecting three cuts. >> i think the market expect three cuts. i think that is the number. i don't disagree with that. i think inflation has been somewhat contained. ultimately, what it will come down to is if t is a true statement or not. the fed things it will eventually come down to 2%. >> what you think? >> i think it will be hard. is the next gas so she thinks three cuts is optimistic. julie, let me ask you, where are we on inflation? howell said the recent data does not materially change the

overall picture. at the same time, we have been tracking commodity prices in particular, will that have an impact at some point? >> yes, commodities could ruin the party for everyone in this sense of where we have seen the most stubborn inflation has been on the services side. it is typical in the normal economies were services tend to run hotter than goods. if we are on top of that having commodity prices increasing, it really filters through the entire supply chain causing problems in terms of being able to bring down pricing. they are in a tricky spot. they have to keep an eye on that. that to maintain a strong focus on inflation. i think it has a long-term impact that could ruin it for everyone. >> is three cuts optimistic? yesterday we were at 2.5, now we are back at three. what do you expect? >> it is hard to guess. it is a factor of how day dependent the federal be. there is not a ton of consensus among the officials. there are only 10 of 19 that

think we will have three cuts. we have heard only one this year. for 2025, yet four members of the fed that think we will be above 4%. the consensus is not really fully there. that is a function of the data pointing in different directions. for us as investors, the trick is, focus on businesses with low leverage and don't count on the fed to save the day. >> i am hearing you slightly as if you are in the einhorn and cohen camp. you are skeptical that inflation will get down to 2%. that could stay the hand of the fed. if i am characterizing your position correctly, how do you make money? you did mention low leverage as one. how do you make money in a market like that? >> was tricky is try to figure out how evaluation will be impacted by interest rates, right? the place where valuation has been the most read up is in the

small stocks. that makes sense. earnings are still not turning around. investors are flocking to where the earnings are growing. that makes sense. that is normal. what we see, this is not a spacey want to invest impassively. you want to pick stocks one by one. you can see businesses with solid growth behind them. the ticker is a great business with the earnings growth in front of it. same thing with one company that does bio simulation software. you have low leverage, solid earnings, these are the businesses, over the long-term, you can be well positioned. >> we saw a good year so far. we had a fantastic first quarter and tech is not had the leadership that i did last year. is that a good indication to you? where would you put your money through the rest of the year? >> the trick is focusing on where you have wrong ornamentals? part of where you are seeing the soft shot on tech it's

people are recognizing that ai has positive near-term implications for some companies but not for all. we are focused on businesses that can deliver near-term earnings growth and long-term earnings growth. it is real. positioning is thinking about what sectors will protect you if there is kind of downturn. healthcare is a tricky one. pricing has been under pressure. there are more government regulations. you can find good pockets of healthcare that are not impacted by that. think about drug delivery or companies that stores samples for large pharma companies doing r&d. you can find these smaller businesses that have good earnings growth and a strong, competitive position. >> think you, thank you very much. coming up, there is a four day work week ahead. the billionaire says ai will

play a big role in that move. we will share the details when power lunch returns.

welcome back to power lunch. despite the talks the bubble, steve cohen things we are more room. >> we are not a 99. i don't think so. because it is a durable theme, i think, does not mean it goes up in a straight line, right? it may take a while for this ai thing to really take hold within companies. they are trying to figure out how to use it. >> silicon valley agrees with him. they say this is not like the.com bubble of 1999, it is more like 1999. you cannot invest in a lot of them. their big names like open ai that are private. there are countless startups that are emerging.

they had this demo day of the smallest startup companies going into this beta program. they are kicking off today. this year's batch includes 260 startups. they say more than half of them are building around ai in one form or another. that is not surprising. i thought david einhorn's comments on the market were interesting. will we be able to invest? >> that is what was interesting in light of this was the idea that the ipo market is not thriving or flourishing. a lot of these things may stay private for a lot longer than normal. when i hear from founders as they don't necessarily want to go public. they are still in the building phase. it is easier to do that in private than when you are a slave to their orderly earnings cycle. einhorn was saying that the roadshow is flawed. used to have all of these long

and medium size managers. they would be there to buy the stocks. you don't have as many of them. they make you don't have as many of them because people gone into indexing. it will be interesting to see exactly what happens with all of those companies. still ahead, spotify users listen up, the streaming platform is another one business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in.

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[ music ] time for tonight's three stock lunch. up first, intel stock is down by about 7% today. brian, what is your trade on intel?>> the news today was that the net operating losses

were higher than expectations, so what i'm looking at for me would be a sell on this stock. the news is coming out on intel, they are still going through this reorganization. they have some really lofty goals to get to by the end of the decade. it makes a little bit more sense to wait and hear from management, and then evaluate things moving forward.>> and lowe's got a downgrade, citing valuation. what is your trade?>> tyler, we saw those comments today, i think they are a little more macro, they are concerned about consumer spending and interest rates, but we do know that rates could go down into the second half of the year and into next year, that could really simulate some things in the housing sector. people are still evaluating moves around their homes, we see some good progress in spending from consumers, and

professionals trying to help. i think lowe's looks attractive, this is one that i would put a buy on for myself, something that i'm looking at moving forward.>> let's talk about spotify raising prices. shares are up more than 6% today, brian, what is your trade?>> i would love to help tyler on this one, but i'm sorry, you have to put a sell on this one. the stock is moving about 50% year to date, it has made a nice recovery from a couple years ago, but we know it is high forward, with rates being where they are, i would like to look at something a little more attractive. we know that consumers are fickle. and there was that announcement that spotify was going to raise prices. in the long-term, where are consumers going to be when they look at digital music choices?

again, something to throw a little caution too.>> as they do raise prices, it's just hard, they are making it hard. it's not like the newspapers. >> spotify is special. brian, thank you. more power lunch is next. [ music ] atever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free.

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stevens dribbles up the court... he stops! ...for the championship! nice shot, marcus! sweet, turn simulation off. tssk, tssk, not so fast.

what, why? did you forget marcus? forget what? your chem exam? uggh? flashcard time! the atomic weight of boron. 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. [ music ]>> we've only got a minute left in the show. amazon cloud computing is laying off hundreds of employees in the sales and marketing unit, as well as staffers who develop technology for brick-and-mortar stores. the move comes one day after amazon said it was going to remove cashier lists check out technology from u.s. grocery stores. i've been waiting for one of those grocery stores.

>> i remember going to seattle, it's not as intuitive as you would think, you have to scan your ab enter.>> you take it off the shelf, pay for it and walk out? >> yes.>> good stuff. thank you so much for watching, have a good one. [ music ] >> hello, and welcome to closing bell. this make or break our starts with stocks gaining some traction. another round of steady economy on the service sector, and the fed chair reiterating a patient stance on rate cuts, with more confidence that inflation is in retreat. the s&p 500 is up modestly, less than a quarter of a percent. the index is