so enjoy this moment. ♪♪ the one they said you'd never live to see. ♪♪ some would still call it luck. ♪♪ let them. because you know what it's always been. inevitable. ♪♪ ♪♪ good afternoon, everybody, and welcome to "power lunch." alongside kelly evans, i'm tyler matheson. glad you could join us. stocks are off their record highs now, but the dow is still up for the week. the s&p 500 and nasdaq also setting records. the nasdaq up more than 2% this week. we'll have much more on the markets with our friend michael

farr of farr, miller, and washington. he is with us for the full hour. michael, welcome. >> thank you. >> no chat with michael here, we have to wait, they say. we'll do our best to try. we want to start with ai because it's been a busy, busy "newsweek." much more to come next week. google and apple up about 4% since monday. and reddit soaring today on news that openai will use reddit content to trade chatgpt. could be a great revenue stream, tyler, for a lot of these companies. >> let's start with microsoft because it's next on deck for the big ai event next week. our steve coback with more on what we might see and hear from microsoft. >> we got two ai reveals down so far with two more to go. this week we got the latest from openai and google. starting monday it's microsoft's turn with its build developers conference. expecting a slew of ai announcements including new ai computers with qualcomm's first ever pc chip. plus, plenty on the software side like ai features in windows

11. and of course then there's co-pilot, microsoft's more key ai assistant. microsoft has been making a huge push to sell it to businesses this year, but it's not cheap. it's $30 per user per month. for now, investors, though, they have little clarity into how well co-pilot is selling despite all that hype from microsoft. i spent some time over the last few days catching up with ctos and other executives who decided to buy tallaco-pilot and see hos received, and answers have been mixed. no one is ready to deploy is t widely. they're testing it with a couple hundred employees at a time. they say it's too expensive while they can't quantity fee the benefit. almost everyone said they love how co-pilot works with video meetings in the teams app and keeps the transcript handy. can summarize everything that happened. useful for catching occupy piles of missed emails. microsoft has given some data on co-pilot performance. recently announced coca-cola is testing co-pilot internally, and

the i.t. company cognizant recently bought 25,000 co-pilot seats for its employees. you can do the math to see how much microsoft is making. as for next week, expecting improvements to co-pilot to address some of those issues customers have been having. guys? >> let's -- thank you, steve. stick around as we bring in michael farr here talking most especially about microsoft. why don't i get you to sort of react to microsoft and what you think of that company's performance and prospects, but also the idea of how critical it is for individual investors to understand ai in today's environment. >> one i like microsoft and i've owned microsoft for years. i think -- you know, there's also a buzz about this microsoft build conference that's coming up i think next week. all the other sort of big tech companies have been having their rollouts. we're looking to hear more from them then. i think there are more ways to win in the ai space with

microsoft than virtually any other company out there. azure and their cloud business, their generative ai, it's -- and they're moving to subscriptions there, i think just looks strong all the way around. it's really hard i think, tyler, to understand what the effects of ai are going to be. if you -- if you explain what chatgpt could do, and ladies and gentlemen, if you haven't signed on to chatgpt and asked it a question or to write an essay or a letter or anything, it's going to blow your mind if you haven't done it. >> perplexity is the same way. another -- it's another version. >> perplexity, yes. so this is a technology that adds to that equation of productivity. if gdp growth is the addition of your workers plus the productivity, productivity can explode, we've been in a productivity recession for years. it changed last year, started to tick up, and it wasn't ai.

but ai i think can move the needle big time. one of the most exciting things going. so it can be a -- it can change growth by a factor, and i think that that's what you see in microsoft. >> in the portfolios that you oversee, do you have a corner dedicated to ai stocks or ai players, or do you -- is your way to play to say, okay, no, i'm going to go with the microsofts,with the googles, with the -- with the ones that are in the space but are not pure or plays? >> we look at kind of all of it throughout our portfolio. for instance, i've mentioned valmont here before, and the stock has done well lately. it's an infrastructure play, but they build the stuff for data centers. and data centers are increasing. so i can look at a company that's got agriculture and infrastructure and go, but wait, these people are supplying data centers, and the demand's going

through the roof. lots of companies, acentury has a whole lot of -- accenture has aett who whole lots of data, miles of data deep that can be used for clearer reporting through ai. so it's not just the microsoft, not just the apples, not just amazon. there's an aspect of this and pretty much -- in pretty much everybody's portfolio. >> i think it's interesting that you're saying that perhaps that initial burst of productivity from using co-pilot is not, you know, immediately tangible with a lot of companies. how much do you think that might slow investor excitement for microsoft if at all at this point ? >> people who are looking at copilot or experimenting with it want to see what the return on investment is. they put -- they meaning microsoft -- put out this report last week that's called their annual work trends index. that was one of the number-one topics that microsoft is talking about, helping people understand that what the productivity

benefits are. i talked to one cto who basically told me it's too subjective right now to really understand if it's worth paying that hefty price. again, $30 per user per month, multiplied by a couple, ten thousands employees, it's going to prove itself. it's a significant bump up from what many customers already paying for their standard tools like email and teams chat. so that is one thing or likely going to be a theme going into the build conference on tuesday is what's new with copilot. is there any elasticity in that pricing to get people to sign on now. right now we really, there's so much minimal disclosure for investors on how -- this is their main product. keep that in mind. they just hired a new ceo of microsoft ai to run that division for user facing and consumer products specifically copilot. a lot of effort behind it, but not a lot of proof there yet that it is all it's hyped up to be. >> what you said about the teams' ability to do transcripts is great, but you don't know if you need 30,000 licenses for

that or maybe a few less than that. steve, thank you so much. we appreciate it. steve kovach. let's stick about ai and talk about executive moves and big hires across the generative ai startups this week including at the two biggest darlings in the space, openai and january droppic. we have more in on what this means we'll see next out of these startups. >> i've been following your conversation, microsoft has grown up, but these gen ai startups are starting to grow up now. also going a little more corporate. number of the most well funded highly regarded startups, they're moving from an all-out focus on building that core technology to turning that technology into products and with a sense of urgency, i should add. there's anthropics new head of product focused to getting tech into users' hand and finding business uses. there's french open source darling mistral hiring a new gm

for north america who has held chief revenue officer roles at a number of other tech companies. and answer engine, tyler mentioned this, perplexity it added three advisers who held senior roles or helped build at uber, android, and bing. for all the hires there was that departure, as well. we talked about it. openai's founder known for pushing the ethical and safe development of gen ai. we'll see what he does next. that is one less voice in the monetization and commercialization drive. we round all this up and more. check out our weekly deep dive publishing today at cnbc.com/tcweekly. to your guest, i would say if chatgpt blows your mind, check out this piece because it's all about the ai agents that can do even more in real time. it's really amazing what we've seen this week. >> i can't wait. >> are they already doing it? i know a lot of announcements -- are these technologies yet to

come or live? >> good question. the demo is a key distinction. there was even some fits and starts with it, but you know, what -- the ceo of google told me earlier is they want this technology and aim to have it into consumers' hands within the next year. it's moving very, very quickly. and the key difference is that it can emote, it can rationalize, it can remember. so a leap forward than what we've seen with chatgpt. >> what's interesting, michael and deirdre, i think back decades ago, i grew up in the publishing business, so did you in the publishing business. and there was at that time maybe a conceit that the legacy publishers were going to own the world of online information and online journalism. and in truth that has not been the case. it has been other companies that have come in and been the winners here. so i wonder in this new

breakthrough world of artificial intelligence whether it's a little too convenient to say that the winners are going to be those legacy tech companies, the metas, the microsofts, the googles, the oracles, and whoever else, amazon, apple, whoever else -- or is it going to be these smaller startups like antropic. there are obviously lots of different facets here. there are the data -- builders and so on. the people that really do generative work, i wonder what you think about that. >> i think your answer's going to be both because as we look through kind of every evolution of every industry, the answer has been both. we can look back to the insurance industry or the big blue chip companies and say every portfolio 25 or 30 years ago had to own aig and had to own general electric and had to own -- and you were supposed to sell corning until they figured out that they could take that

bakeware stuff and turn it into fiber optic cable. >> really? >> right? >> and the glass on the screens. >> the glass on the screens. so you really need to say -- some of these smaller companies are going to have it right, and some of the bigger companies won't. content has proven king in publishing and will with this. >> i was going to say, the reddit deal, i would love to know the terms, perhaps out there. to your point, if you're a reddit, a "wall street journal," if you are a -- a sort of repository of information and language that the large language models can train on without violating the law and being accused of stealing down the road ask they're going to pay for that privilege, could those companies become the winners? >> you've covered this a long time. i think back to the days when who dominated the digital space? a company called aol did, okay. everybody thought it was going to be aol's world. they -- >> it came along later -- >> pardon? pardon? >> google only came along later.

there was -- >> google, aol was going to own it -- yahoo! was going to own it. and where are they now? even those guys -- they're all but dead in the water. >> and when they came along, i was -- i was guest hosting on cnn fn and we interviewed these two kids -- >> you're dating yourself. >> i know. the two new kids from this company called google. we were in the middle of the dot comcr craze. i looked at rhonda shafler, they're calling this company what? google? i thought it was like yahoo!. a company that -- >> go ahead -- >> it's a really good point. it's not like google came in and reinvented the wheel. they just had a better user interface basically and began to dominate the market for search for the next two decades. so in this moment there's a similar, very fierce debate going on. i think the difference is that the mega caps that we know now

are so well capitalized. they're the biggest companies in the world. and they're moving quickly. we talk about the regulatory red tape. google was able to acquire deep mind years ago. and that was really essential for them leading the technology. there are startups, though, like perplexity and anthropic and others that are making google and microsoft move a lot faster, and certainly an open question. i probably agree with michael, it's going to be both. >> thank you so much. all this ai build-out is going to require chips, and that's going to require money. the u.s. government has already handed out $33 billion of money from the chips act. another $6 billion remains, and we have more on that. megan? >> hundreds of companies are still vying for a piece of that pie that's remaining from the chips act. most of the $33 billion that's been allocated has gone to leading edge producers like intel and samsung. and mike schmidt who leads the chips office at commerce tells us the focus now is on sending smaller awards to dozens of

smaller companies along the supply chain. the goal is to provide grants for equipment and material suppliers on one end all the way to packaging facilities on the other. >> our goal when we're evaluating an application is first and foremost to assess the benefits of the application for economic and national security, and then second to negotiate as good a deal as possible for taxpayers. >> reporter: one company competing for a chips award is iqe. a uk-based company that produces what's called compound semiconductor wafers for companies like apple. its ceo says he recognizes the interest in funding ai chips but says it's also crucial to fund the materials that help them work. >> our conversation with chips office is about capacity and new technologies. and we are having very constructive conversations. i'm pleased to see them looking at the industry as a whole. >> reporter: now industry

experts say funding these suppliers is key to making sure that chip manufacturing in the u.s. can last for the long term. g guys? >> megan, thank you. i would turn to you, michael farr, and say intel was seen as the clear beneficiary of these handouts. is that a stock you'd stick with? are there others? >> intel has gotten beating up. they've come way down off the highs. is megan still here? >> probably. >> is she still -- because i was just going ask about the capacity. this was a big part of the supply chain problem when we couldn't get chips to put in new cars. we stopped production lines, right? so i think you have to look at who can actually deliver the chips that we need, and intel's okay, but it's still -- in my opinion -- >> nvidia's world. >> it's nvidia's world, and it's still taiwan semiconductor's world which brings in a political conflict. if something happens in taiwan, doesn't that even make indinvidia

more exclusive, gaming and stuff. getting high-tech production facilities up and running and tooled in the u.s. is a multiyear process. you just can't come in and say we're going to produce these highest level of chips, the low level of chips you can get and they're cheap. >> put it differently for all that intel has benefited from the handouts, the stock is nothing like an nvidia. although it's -- obviously it's done much better of late. i think there's a ways to go in that story. >> but a contrarian and a fundamental investor i think would look at it and say, and i haven't jumped in that intel water yet, but probably they've got the tools, the experience, and the balance sheets that, yes, they can get there. >> all right. a quick power check as we head to break. on the plus side, today is robin hood. the online brokerage soaring on buy of b of a and cites retail investors. on the negative side, cracker barrel, cutting dividend to 25 from $1.30 per share and forecasting lower sales and profits ahead.

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 it's odd how in an instant things can transform. slipping out of balance into freefall. (the stock market is now down 23%). this is happening people. where there are so few certainties... (laughing) look around you. you deserve to know. as we navigate a future unknown. i'm glad i found stability amidst it all.

gold. standing the test of time.

a slow network is no network for business. gold. that's why more choose comcast business. and now, we're introducing ultimate speed for business —our fastest plans yet. we're up to 12 times faster than verizon, at&t, and t-mobile. and existing customers could even get up to triple the speeds... at no additional cost. it's ultimate speed for ultimate business. don't miss out on our fastest speed plans yet! switch to comcast business and get started for $49.99 a month.

plus, ask how to get up to an $800 prepaid card. call today! welcome back to "power lunch." the day after the dow kissed, as bill says, kissed the 40,000 level, stocks are mainly flat today. though the major averages are on pace for a strong finish to the week with the dow up a percent, and on track now for its fifth higher week -- week higher i should say. the s&p 500 up about 1.5%, the nasdaq up about 2%. michael farr of hightower advisers with us for the hour. we want to spend time talking markets with you. momentum typically begets momentum, doesn't it? >> it does. >> until it doesn't. >> until it doesn't and momentum reverses the other way. it's been a long time since we remember the lower lows every day. yeah, i mean, if you think about it this way -- every brand-new high we have ever made in

history except for yesterday's has been succeeded at some point by higher high. so this is the trend, this will creep up. these are psychological numbers. it's great reason to celebrate, capitalism, the american way, and the good work and information that comes from cnbc. >> i shouldn't feel bad if i'm a viewer and i say, well, you know, i've been hiding my money in car, didn't trust this -- in cash, didn't trust this. it's still with reason a good time to put money to work if you are going to dollar cost average in, if -- >> sure, yes. you never want to stop your discipline. so if you have a discipline, you stick with your discipline. my longtime partner, john washington, said the best time to buy stocks is when you have money, and the best time to sell stocks is when you need money. otherwise, pay no attention to the levels. there's a lot of wisdom actually in that. and just holding through various cycles for the long term and letting your money grow and compound tax deferred. >> want to mention one of the catalysts seems to be the cpi report. softer than expected. enough per people to be off to

the races saying, okay, maybe we can have rate cuts after all or what have, seen bond yields drop. even today the market has given up gains after the fed's bowman said she'd be open to hike figure needed. she's been a hawk. this isn't a newsflash. do you think the fed's going to try to push back a little bit and maybe try to say, okay, we need both options open? >> yeah, that's exactly what the fed's doing through these various jaw-boning and folks and governors saying we might be open to a raise. do i think they're open to a raise? no. what i think they had to do is say they were open it a raise because stocks took off. i saw that number and i saw futures take off, then they pulled back. i said that was just -- you know, that was the box trading. that was the algos that ran up. but they've got -- got ahead of itself. markets have been doing this to the fed for two years now. every time the fed says we're going to be data depend end or do this and that, they go, fine, no, we're going to cut, we'll have seven or eight cuts. no, you're not.

the fed never said it. then the fed comes back -- >> love the fed because they give us -- i almost said something else -- stuff to talk about. give us plenty to talk about. we spent the last year worrying about what the fed was going to do, what it wasn't going to do. worry about inflation. but now more and more people seem to be worrying about the consumer. are you? >> sure. you have to worry about the consumer. the main fundamental support for the entire u.s. economy is the consumer. and if you read home depot's earnings report that they are seeing smaller tickets and fewer tickets and that consumers are deferring big purchases, a lot because maybe home sales aren't at the same pace and they're going to focus on pro and everything else. you're also seeing this from even the fast food restaurants, some of them, saying consumers aren't spending as much when they're going and getting pushback. are we finally reaching that point where the consumer is running out of wallet? they had a bunch of money on their balance sheets. we know that wages have kept up.

but we need to watch this consumer, the strength of the consumer and their ability to spend will dictate whether these companies can continue to have top-line sales. yeah. >> all right. on that note, tune in to cnbc's financial adviser summit wednesday, many 22nd. -- may 22nd. hear from investing experts about the current bull market, answer all of your questions, give you a lot more. scan the qr code to register or head to cnbcevents.com/fa. we'll be right back on "power lunch." and when i got there, they have the sushi- this is clem. like sushi classy- clem's not a morning person. i'm tasting it- or a night person. or a... people person. but he is an “i can solve this in 4 different ways” person. and that person... is impossible to replace. you need clem. clem needs benefits. work with principal so we can help you help clem with a retirement and benefits plan that's right for him. i'm short but i'm... i'm confident. you know? let our expertise round out yours.

welcome back to "power lunch." now it's workers at a mercedes-benz plant in alabama voting today whether or not to unionize. phil laboe is tracking that story. >> as we speak the mlrb are counting votes at mercedes-benz in alabama to see whether or not the members have voted to unionize. we expect the results sometime this afternoon. for the uaw, this continues a pattern that they laid out the strategy for sometimes ago. after they wrapped up the big-three negotiations they said we're going to target the foreign automakers as well as ev

final assembly and battery plants, and the whole idea here is you got to reverse the membership decline if you're the uaw. they're down to roughly 370,000 members. we've talked about this for weeks if not months, that this is a decades' long decline in membership, and the only way you're going to reverse it is by organizing nonunion plants. there are 21 nonunion plants in the united states. most of nepal are owned by -- them are owned by foreign auto ma makers, most in the southeast. the uaw were successful last month at vw in tennessee. we'll see what the outcome is here for mercedes-benz in alabama. what happens after that, couple of responsibilities have been mentioned. a hyundai plant in alabama as well as a toyota plant in missouri. those are two areas where the uaw believes it could be successful turning those plants into uaw shops. first, they've got to organize mercedes in alabama. again, the nlrb counting the

votes. we should have the results sometime this afternoon. guys? >> phil, what -- you know, the other way that the uaw has been trying to increase membership is by being active in organizing believe it or not workers on college campuses. >> true. >> right? >> a big part of the uaw membership is outside of the auto industry. >> right. people don't understand that. people don't realize that. >> that's a big part of what they've done over the last 15 to 20 years. and they had to, tyler. look, a lot of the decline in membership at uaw is because the big three have eliminated so many plants over the last 50, 60 years. that's just a function of the fact that they've been losing market share obviously. but manufacturing has become much more efficient. you simply do not need as many people in a final assembly plant as but 2 or 4 -- as you did about 20 or 40 years ago. if you're the uaw you can try to organize plants like they're doing with mercedes-benz or say where else can we take our union message and get members.

>> phil, it's michael farr. nice to see you again, always. we saw what happened with that volkswagen plant in tennessee. and you know, from the old guy's perspective, you look at a union and say, all right, they're going to go out and sell better benefits, better salaries, they're going to make a better package for the workers, and then they're going to add that through and increase car prices and product prices, and it's going to create a certain level of inflation that they pass on. is that still the sale? is that the sale they made it tennessee? is that the sale they're trying to make in alabama? >> that's not the sale -- >> how are they -- >> you're -- you're right about the message, and the message is a pretty simple one. if you are a mercedes line worker in alabama, you're looking at people up for general motors in michigan saying wait a second, they got a 25% raise. and they were already making more than me? i want a piece of that pie. that's a pretty easy message to sell. in terms. your other point that you're making, in terms of higher prices means more inflation and

makes it -- makes these plants less competitive, that's what we're hearing from governors of southern states. kay ivey, governor of alabama, has been emphatic along with other governors saying don't do this, you do this, you're not going to have a plant that is as effective, as cost effective for the automaker, and someday that automaker is going to make choices about where to cut costs. >> all right, phil. thank you so much. phil lebeau reporting. we'll know the results of that vote sometime later today probably. let's get to kate rogers for a news update. kate? >> tyler, the man convicted of attacking representative nancy pelosi's husband with a hammer was just sentenced. david depape received 50 years total on two charges, but the sentences will run concurrently. it amounts to 30 years behind bars. depape fractured paul pelosi's skull when he couldn't find the then-speaker at their san francisco home in 2022. he goes to trial onstate charges for attempted murder later this

month. actor alec baldwin could see charges dropped against him in the deadly on-set shooting of his film "rust." his attorneys just made their arguments. the judge is expected to rule next week. it follows the manslaughter conviction of the film's armorer, hannah gutierrez, who loaded the live round into the prop guidance that went off killing the cinematographer. it could be the most famous napkin in history. the napkin signing a young lionel messi to barcelona sold to a british auction house for $965,000. the agreement to bring on the 13-year-old messi was written almost 25 years ago at a barcelona tennis club. tyler, back to you. >> best deals get done on a na napkin. thank you. did one of my own that way. still ahead, we wrap up our anatomy of the consumer series. for our finale we're going to dig into the psychology of spending. we'll be right back.

[ growl ] ready for the road trip. everyone comfortable.

yep, there's plenty of space. i've even got an extra seat. wait! no, no, no, no, no. [ gasps ] [ indistinct chatter ] [ sigh ] let's just wait them out. the volkswagen atlas with three rows of seating for seven. everyone wants a ride. [ snoring ] ok, get in. [ speaking minionese ] yippee! and see "despicable me 4" in theaters july 3rd. rated pg.

norman, bad news... i never graduated from med school. what? but the good news is... xfinity mobile just got even better! now, you can automatically connect to wifi speeds up to a gig on the go. plus, buy one unlimited line and get one free for a year. i gotta get this deal... that's like $20 a month per unlimited line... i don't want to miss that. that's amazing doc. mobile savings are calling. visit xfinitymobile.com to learn more. doc? welcome back. all week long on "power lunch" we've been breaking down the health of the consumer, and major sectors from retail to restaurants and travel. today we wrap up our series

looking at the most complex part, the one often hardest to understand, the brain. we're diving into the psychology of the consumer. the latest reading on consumer sentiment from the university of michigan showed the index falling to a six-month low, largely on inflation fears. for the most part, the average consumer is still spending. so what would have to happen for them to start really cutting back? here to discuss is joann schuh, director of the surveys of consumers at the university of michigan. great to sort of meet you. welcome. >> my pleasure to be here. >> what do you think -- some people say, you know, the drop in consumer sentiment, reality is consumers are spending and there's some divorce there that's -- do you think that's the case? or what do you think your survey is telling us? >> not at all. while it might have surprised some people that consumer sentiment is so low considering that consumer spending overall is quite robust, consumers are not at all disconnecting from reality. what we've seen over the last two years is that consumers have noticed that inflation has

softened, they are perfectly aware that labor markets remain strong. and as a result, you know, they -- they do have a good sense of how the economy is going. however, it doesn't show that consumers are thriving. and really the main thing that's supporting consumer spending right now is strong labor markets and strong incomes. and you know, labor market strength appears to have softened a little bit more than expected in the most recent readings of the labor market. so that's a bit of a concerning sign because, again, this is the one thing that's really supporting consumer spending. >> what's so interesting to me about behavioral economics is that it is so often counterintuitive. and you talk a little bit about how consumers may be feeling today, a little bit defeated, defeatist about intractable housing prices, food costs going up, so on and so forth. one might think that if consumers feel defeated that they would pull back. you say they may do exactly the opposite and just say, ah, the

hell with it, let me spend it anyway. >> yeah. i think what we are -- we have to look to the data. what we are seeing is a combination of negative attitudes and positive spending. and this positive spending is not a reflection of some sort of internalized, secret sense of confidence that consumers have. and instead my interpretation is that consumers see that a lot of aspirational goals that we talk about as part of the american dream. you know, homeownership, paying for college, paying for college for your kids, having a comfortable retirement. with high prices and interest rates now, those aspirational goals just feel increasingly out of reach. and as a result, i think consumers are not really -- they've begin up on saving for those things. and with strong labor markets, that enables them to spend now. i think that's what we're seeing in the consumption patterns. >> dr. hsu, it's michael farr. when you've looked at these patterns before, where the consumer ad tuesday perhaps are getting a little bit -- attitudes perhaps are getting a

little bit weaker, how do the cycles end? we have inflation, higher prices, inflate the rate of those higher prices is decreasing. that's a good thing. we have real interest rates. is there -- is there a point where the consumer runs out of wallet, or do they just run out of attitude or both? >> i think the wallet is going to hit earlier than the attitude, but it depends on how labor markets are going. again, the reason why consumers can even afford to spend in spite of their dower attitudes about the economy is because of strong laker markets and incomes are strong. what we see in data is that consumers broadly have been expecting strong labor markets to persist. in our most recent reading in may, our may preliminary data, consumer expectations over labor markets have softened a little bit. so you know, that's an early -- possibly an early sign of oncoming weakness for consumers. as of now, strong incomes are supporting consumer spending. >> i think the conclusion from every part of the consumer we've checked in on this week is that it's really down to the labor

market. >> yes, i think that's perfectly consistent with what we are seeing. and so i think people who watch the economy should be paying close attention to labor market expectations because i do think that's going to inform how consumers behave in the year ahead. >> all right. thanks for joining us. we appreciate your time. >> my pleasure. up and coming up, we've got our eye on ai, a special ai edition of "three stock lunch" is ahead on "power lunch." we'll be back in a minute. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like?

of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

welcome back, everybody. bond yields rising today as investors continue to digest this week's inflation data. let's get to rick for an explanation. hi, rick. >> hi, tyler. indeed what a week. the ppi was about the downward revisions to last month even though this month was hot. cpi, it was cooler, but significantly higher than the fed's 2% target.

retail sales was week, and today leading economic indicators not a top tier statistic on the economy, but an important one. minus .6, worst since october, 25 out of the last 26 months have been negative. look at an intraday of two-year note deals. we've popped up today. around 11:00 eastern, you notice that line that popped up? if you put a two-day chart, there's your explanation. it's momentum technical trade on a friday. we traded above yesterday's just shy of 4.80 high and it accelerated to the upside. temps were the saim same. if you look at twos and tens you see yes we're up on the day in two's up four and tens were up four. on the week we're down five and twos, down eight and tens. it shows that two tens is a little more inverted, long-end rates are surprisingly low considering. back to you. >> that's an interesting point. rick, thank you so much. have a great weekend. we're celebrating asian

american, native hawaiian and pacific islander heritage all month long. heaters our own deirdre bosa. >> asian americans own an estimated three million businesses in the united states while native hawaiians and pacific islanders own nearly 90,000. collectively the group employs close to five million workers. the u.s. small business administration says that's just under $200 billion a year paid to work forces. for heritage month, i'm deirdre bosa.

ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. 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 it's time to feed the dogs real food, not highly processed pellets.

the farmer's dog is fresh food made with whole meat and veggies. it's not dry food. it's not wet food. it's just real food. it's an idea whose time has come.

welcome back. it's time for today's ai focus three stock lunch. here with our trades is gina sanchez, a cnbc contributor. welcome. we're going to start with reddit. shares were up big after announcing its openai partnership, 85% increase so far rivaling nvidia. i think it's a super cool idea, and potentially lucrative for reddit. you say it's artificial ignorance. talk about that.

>> yeah, if you think about the business model of reddit, it is really dependent on a whole lot of free contributors. in fact, an army of free contributors that are putting information and information isn't necessarily well fact checked, great information. sometimes it's just information. it gets -- goes into the echo chambers and beis picked up by artificial intelligence. you are what you eat and the same is ingestion into a.i. bad information begets bad information. it's not just artificial inrance but artificial inbreeding of information. >> interesting. >> memorable phrasing there, gina. thank you. we asked you to give us a big cap play in a.i. and maybe not surprisingly you chose nvidia. >> yes, this is the biggest of big cap names in the space. it is really, really firing on all cylinders, and adoption of

a.i. is happening everywhere. so, if you think about tech, eating everything in the '90s, now a.i. is eating everything in tech, and it's showing up everywhere driving revenues for the stock. if you look at its trailing p./e, that's 34 times on a forward looking basis for the growth we're expecting both top and bottom line from this company. >> down a bit today, michael. close to an all time -- may have hit an all time the day before. >> it's the thousand-pound gorilla. yes, it's expensive when you look at it on a multiple basis but on a growth basis and peter lynch says earnings growth is the most significant indicator of price performance over time. this has earnings growth at the forefront of a.i. they're really tough to bet against them. >> all right, let's turn then to a very different way to play a.i., gina. you came up with as midtronnic. explain. >> medtronic is one of the

devicemakers. like i said it is eating everything and health care is no exception. medtronic has gotten regulatory confirmation for five a.i. efforts that -- a.i. products that they are doing including an a.i. generative system for diabetes, which is mini med and they have an a.i. product for endoscopy, so lots of ways to do it. in fact, just last quarter you heard about medtronic talking about the adoption of its a.i. surgical planning for spinal surgery that has been shown to improve outcomes for spinal surgery, so this is one of the plays where you see an industry where, you know, demand is nearly unlimited. resources are very limited. a.i. could actually have an enormous impact on driving demand and, quite frankly, if you look at this stock on a forward, you know, p/e basis

it's trading at 16 times very attractive with strong and stable margins. >> michael? >> i've owned it for a long time. i like they've had consistent and positive sales growth. once again i agree with gina, and i think you're going to see not only medtronic but a lot of other companies particularly in the med tech space that benefit from a.i. >> gina, thank you very much. gina sanchez, we appreciate your time. >> remember, you can always hear us on our podcast. it's your podcast too, everybody. be sure to follow and listen to "power lunch" on your favorite streaming service. we'll be right back.

i'm not a doctor. i'm not even in a doctor's office. i'm standing on the streets talking to real people about their heart. how's your heart? my heart's pretty good. you sure? i think so. how do you know? you're driving a car, you have the check engine light. but the heart doesn't have a hey, check heart sign. i want to show you something. put both fingers right on those pads. there you go.

in 30 seconds we're going to have a medical-grade ekg reading. there it is! that is you. look at that. with kardiamobile, you can take a medical-grade ekg in just 30 seconds from anywhere. kardiamobile is proven to detect atrial fibrillation, one of the leading causes of stroke. and it's the only personal ekg that's fda-cleared to detect normal heart rhythm, bradycardia and tachycardia. how much do you think this device costs? probably a thousand. $99! wow. that's impressive. checking your heart anytime, anywhere has never been easier. don't wait. get kardiamobile today for just $79 at kardia.com or amazon. (♪♪) all right, welcome back to "power lunch." three minutes left. several more stories we'll talk about right now beginning with gamestop. shares tumbling more than 20% after revealing plans to sell

additional shares and a year over year drop in first quarter sales. in a filing the company said it expects net first quarter sales between 872 and 892 million down from 1.2 billion a year ago. gamestop more than doubled in value earlier this week thanks to those roaring kitty tweets. i am always beware of stock tips from that. >> those things can go up fast and can go down really fast. if they say they'll sell and bring a stock offering when it's making new highs, bye-bye. >> bringing new shares to the market as profits go down, not usually a good sign. >> no, that's what the company wants, more investors to come in and take advantage. new data found one in seven gen-z have maxed out their credit cards. that compares with less than 10% of gen-x.

less than 5% of the boomers and gen-z is born between 1995 and 2011. is this different from historical norms. you always expect the younger ones to be more cash pressed than the older wealthier -- >> they've got to figure out you've got to pay this money back one of these days. i truly -- i actually had a friend in college who said, i can't be out of money, i still have more checks in my checkbook. that's absolutely god is my witness true. >> you learn the hard way. >> that might have been my roommate. all right. finally, one of the wildest stories we've heard, the number one golfer charged with assaulting a police officer among other charges. scottie scheffler trying to get around a line of traffic at valhalla golf club near louisville, the site of this week's pga championship. according to police, an officer trying to stop him was dragged to the ground and injured. result, scheffler arrested.

there's the mug shot and then released. he made it back to the course for his 10:00 a.m. tee time and shot 4 under par and moved into first place and birdied the first hole, michael. >> how he made it to the first hole after being in the jumpsuit then he birdied the first hole? this guy is -- >> a lot more to learn. there were apparently lots of dash cam, lots of body cams involved here. there had been a fatal accident earlier in the morning that was backing up traffic and i believe he drove around onto the median. he claims that there was confusion as to what he was supposed to do and that -- and the officers say, no, there was no confusion. he interfered but we'll see. >> wow. >> let's talk about the markets. watch three thing, fed, consumer, and earnings. quickly take us through it. >> you know, all of these things seem to be in a bit of conflict and the fed is saying we're not going to do anything. the consumer might be getting a little bit weaker and earnings are still okay so i just caution investors, line from my favorite

poem, whether or not it's clear to you, no doubt the universe is unfolding as it should. we've been through this before. everything's reasonable. stick with your long-term plan. you'll be fine. >> michael, it's been great having you with us. >> thank you so much to both of you. thank you. >> great to be with all of you. hanks for watching "power lunch." >> "closing bellst starts right now. i'm scott wapner and this hour begins with 40k and beyond. what immediates to happen to have stocks make new milestones. your scorecard with 60 minutes to go in regulation looks like this. after this race to new records taking a breather as you can see today. the major is mostly mixed. interest rate, they're a touch higher too. that may be capping activity just a bit and stocks, well, they could also be looking ahead to a busy week with nvidia earnings looming especially large next wednesday. it does take us to our talk of the tape. what is ne