before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com welcome to power lunch. we are starting with session lows. let's look at what's happening a get out to you for the release of the highly anticipated headlines. these were minutes from after three months of lousy inflation data and before a month a better inflation data. it could be a bit hawkish. the fed did discuss keeping rates higher for longer if inflation did not move sustainably toward the 2% target. they do expect that inflation would come in the medium-term, edge for that target.

recent data at the time suggested that this process would take longer than they had previously expected. the readings did not increase the confidence for cutting interest rates. although the fund rate was seen as restrictive overall, many were uncertain about how restrictive it actually was. they did discuss the possibility that the rate may be higher and higher rate may be less effective at slowing the economy down they have been at the past. they saw the lack of progress on inflation, increasing goods and service prices across the board. there was a debate. some saw this as residual seasonality. we did discuss a lot. others on the increases as broad-based. there was also a dub discussion with they said the easing of the labor market would be seen reducing inflation in the in the coming months. they did discuss cutting rates at the labor market did get weaker, onyx unexpectedly.

the numbers saw consumption growth showing. once again, this was after three lousy inflation readings before the most recent one that was more helpful, and easing of demand. you can see how they were processing, doubting whether they were restrictive enough. to talk about being higher for longer. i think they are there, with a bit of the boil coming off. >> it appears as though the markets are reading at the same way. will put that in context as well. please stay right there. for more on the story, the economy, and the market impact, let's bring in ken stern, the economist over at wolf research. thank you for being here. we will start with you, because you're sitting right in front me right now. the whole idea that we are trying to put context around this particular bit of fed minutes, given the bad inflation we saw going into it

and the decent one that we have gotten since then. the markets are reacting measurably to this. that's probably the right thing. do you feel as though this is a situation where the fed is on the right path? >> i do, the fact is, let's take a victory lap for a minute. we had 11 rate hikes. we are in an election year. we had bank lawyers in the last 12 months. here we are at all-time highs, this is a climbing the wall or story here. i think rates are going higher as the probability? no, do i think rates stay the same or go lower? yes, that is the probability. let's find opportunity. there is quite a bit to liken the market today. >> stephanie, this is an interesting point. this is an environment where there is uncertainty, not just right now, but during the back half of the year. that plays into the backdrop for how the fed has to view the future path on rates. do we feel as though the fed is

doing the right thing by holding off for the time being? >> it makes sense, they are looking for 0.2% month on month. that is the threshold that would make them feel comfortable cutting rates. we have not been there. the april data is encouraging. now we will watch. the best case is that the next couple of data releases will show things running close to that 0.2%. they could be cutting by september. there committed to a 2% inflation target. 3% and above is not acceptable. the good news is, we are getting some better data from the inflation perspective. there are some signs that economic data are softening, such that they can feel comfortable cutting rates. >> i was thinking about the victory lap comment. the fed has painted it that way through the end of last year. are we living on borrowed time to use the expression from the

guest during the last hour that is worried that the price increases that we are seeing is the flipside of the deficit. the deficit kept rates higher than it would be. with that taper off? the weakness comes forward and more of the malaise appears then we think is out there? >> like that approach. it's time to be cautious going in here. a lot of money is lost waiting for the bear market. this is a good time to look for opportunity. i think there is opportunity in the market. i do agree with you. i think there is some hedging that we should think about right now. >> one that look like? >> you think about the volatility index. nobody thinks the market is going down. >> it is cheap. it is very cheap right now. >> again, look at your portfolio and talk to your advisors. you could purchase a hedge on the s&p 500 at a cheap rice comparative to when the market thinks it will go down.

it is not right now. that looks good. if you take the m.a.g.a. out, there are many stocks trading a good values, why are we looking at this more of a stock pickers market and less of an indexer's market. >> steve, no you are here to digest the headlines coming out of these minutes, do you feel as though, if you are in the room, obviously we know there has been a lot of the fed speaking, do you feel as though the fed feels there is enough cover, if inflation and economic data in general comes in on the same trajectory that we have seen over the last month or so, that there would be rate cuts later on this year? the closer we get to an election, the more people talk about the political influences that are brought to bear or not brought to bear on that discussion. >> that's a good question. let's be clear, if i were in

the room, i would have been kicked out. i was not supposed to be in the room. let's be clear about that. i will go on. there is an interesting reading of this, if you read between and among the lines. look at what the story is here. they were meeting amid, higher than expected inflation. what was their response? it was higher for longer. go down a bit further to the end of the minutes and they say, what is the response to an onyx acted market weakness. this is asymmetry. it is not rate hikes, but it is to unexpected labor market getting weaker. it does answer your question by saying that essentially, the bias is to cut rates once they get the go-ahead from the inflation data. if the inflation data does not cooperate, up to a point, remember there was a discussion about how restrictive the fed is.

if the data does not cooperate, the response is higher for longer at the current rate. it says there is an unspoken bias to cut rates. >> stephanie, you think we will see that cut in september? >> april was indicative of the nonseasonal impact in inflation data. we have financial services and inflation slowing down, that was driven by the really strong markets. inflation should continue to soften. some of the seasonality that impacted recreation goods that were high in quarter 1, problems factors, inflation should be close to 0.2%. we might be in surprises of that would feel different from what we saw in the first quarter of the year. >> we have a very big earnings report coming up after the closing bell today. this is one that people say

could set the tone through the rest of the market. if you look at that report that we are anticipating, put in context of the jobs data we have gotten, should investors feel comfortable about the market going into an election cycle and beyond? >> the election cycle is the big unknown. if nvidia comes out poorly , the last time they had a 100 point swoon, it was a great opportunity. there is a lot of hype with ai. this is one of the core holdings that i think people would be looking at right now. >> if he saw pullback your, would you agree with that long term? >> every entry point, whether discretionary or healthcare, there is good opportunity in here to pick out. as more of us talk quicker and less of the market as a whole. i think you all.

coming up, nvidia or after the bell. analysts are expecting results to wow, could it be the last is a great bit of earnings? as we go to break, this is solar popping 17% after ubs is in the ai race since they use 10 times more power than a google search. on the negative side is target, down almost 10%. they are tumbling after reporting consumers are purchasing fewer everyday items like groceries and home goods. that is your power check and power ledger. we will be right back.

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welcome back to power lunch. shares of nvidia are down a little bit. air coming off of a 200% rally over the past year. go out 5 years, it's up 2400%. what could it possibly do or say to match these lofty expectations? we have our guests here, welcome to you both. it feels like this is one where people want to stay positive, because as one of the most transformative companies we have ever seen. near-term reaction after earnings, who knows? maybe last summer there was a negative reaction even though they blew it out of the park. on average for the last four quarters, they did surpass revenue estimates by 20%. expectation is at least $2 billion more than the $24 billion that we were expecting. that would probably move the stock.

there is a lot of drivers. the four drivers i outlined would be limit spending. 50% of data center revenue for nvidia in q 4. they increased ai revenue estimates. the third part of me don't talk about is taiwan, taiwan experts 90% of data service. they had a great recent quarter. that highly correlates with nvidia. will subtest on the board. i'm sure daniel will weigh in on this, we talk about this and people are like why are they always talking about this one particular quarter, given how transformative the company is? forcefully, they don't go to the same magnitude, you would see an immediate selloff to remove risk. so many people are listening. any selloff would lead to

discernment. is. the whole market is watching it because the whole market was to know if it is fairly valued. it's the only real game in tow . maybe the weight loss drugs, this is the action and the heartbeat. to make the whole market is on stilts. the problem is they set this expectation that a bead is ordinary. this has a really positive outlook toward the future. nvidia is setting the pace of the entire market. the market sets the pace of the entire economy. we are looking at what is going on in the data center and ai, and will be excited to hear about the transition to blackwell. overall, the market is looking at this and saying, is all of the exuberance, are these all- time highs, is this warranted? nvidia is a name everyone is looking at . >> this is one of those situations where, the market are getting more comfortable

with the idea that it will not be such a big deal for nvidia. traders are predicting a less volatile earnings reports than the last 8/4. does that make you feel more comfortable about this idea that maybe nvidia can be the way it has and the stock does not have to react to so positively for things to be held at the status quo? >> we are wondering how much a pullback could happen if they don't blow it out of the park. we are wondering how much is been baked in. when it was at $122 a july 2022, i said nvidia will be the most transformative company on the planet. now it is t 900. takes a pause, what investors say this is not a great opportunity? absolutely not. i don't see any situation in which you can't look at this name is and want to be in this for the long haul, because i believe ai will grow as so many different capacities, from the

devices we are seeing launched this week, from microsoft, and the data center that will transform every industry. >> i would not quibble with evaluation. you could argue that it is a steel with 38 times. it is just the size. the market limit is around $1 trillion, plus or minus. >> last year this time, it was 755, before the earnings repor . >> if it's possible you get in on the stock now and it has so much more to grow, how big are we talking? $3 trillion? $4 trillion? >> the forecast is of the current quarter comes in line with analyst expectations, this is a company that will have doubled revenue in one year, or tripled it. this is the idea here, that the market limit is there due to those expectations. it does not have to surpass it

by that much for it to feel like it will not drop 5% to 20%. you will see that kind of volatility. >> you talk about the options action of $200 billion, he could swing either way for evaluation. the five-year average is 36 times. it is pretty decent. just a concern on the risk sid , maybe the estimates have moved a bit higher. this demanded low, chinese restrictions and gross margins that will hit a peak this quarter. they will likely be around 77. they will go down to 75. if that gets a little worse, it is concerning. >> the market limit is $2.3 trillion. how much bigger can nvidia get? if the share prices just by that and you et in now, are you talking if i try dollar company? it seems like it is impossible to contemplate. is to make the pathways there.

every company on the, microsoft, service now, all of the companies are building on nvidia. it is hard to bet against. it is hard to bet against it because ai is the megatrend transforming every business right now. >> thank you both. further ahead on the show, more cars on the road in the twilight years of their lives. with vehicles made before 2008 remaining wildly popular. high prices are a key reason. to could be key factors as well, we have that story wind power lunch rerntus. i do own a 2005 car. [ laughter ] 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

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lexaria bioscience, transforming the future of glp-1 drug delivery. welcome back to power lunch. steve warned us that we would hear something hawkish in those minutes. we certainly did. the dow is down 240 points. it is 0.6%. let's get more analysis from rick in chicago. rick? hello, kelly, indeed. what is fascinating you're coming said steve warned us it would happen this way. many believed that it was not

what happened this way no matter what the minutes said due to the last batch of inflation data that we received. it was not any market improvement. in many ways, we saw did not get worse on cpi. the way the market is reading the minutes, maybe that is not the correct interpretation. if you look at these 2 years, short maturities are closely associated with, and trade aggressively based on anything that has to do with the fed. as you see on the two day chart, not only are we significantly above yesterday's range, we are making new high yields. as you pointed out, stocks, since the minutes released are making new lows. if you look at longer maturities like the ten year, what jumps out at you is we had a good 20 year note auction. we doubled the bottom at 441. it was not nearly as much important movement to the upside to challenge the trading yield highs earlier like the

short maturities. the curve is inverted more. why did that happen? my sources say, you know, when you look the way the markets re- price on every new bit of data, we have a new high and low. rarely do we close in the exact same spot. when traders look to the federal reserve, they do expect a deeper understanding and less change. that should not translate to the interpretation. as far as this is shifting from the base case that the fed chairman always that would be at ease. maybe that is under review. you need to pay attention to which side of the 490 closes over the next several days to really see how much the minutes could alter investor impressions of what could lie ahead with regard to rates. back to you. thank you for the latest out of chicago. still to come on the show, while ai risks have long been discussed, opened ai's clash

with scarlett johansson could be a final straw, opening the door to calls for stronger regulation. we will debate that topic, coming up next. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back. i'm here with your cnbc update. most of the families of the victims in the on the tree school shooting reach a settlement over the 2022 mascara. to avoid a lawsuit, the city agreed to pay families of the 17 of the 19 victims $2 million, pledging to overhaul the police force and create a permanent memorial. this comes after justice report found authorities waited more than 70 minutes to engage the gunmen in the school. the messieurs letter that tried to auction off the graceland estate says it will no longer move forward with the foreclosure kit claim. this came after the judge halted the auction of the property. the company alleged that his

daughter put the estate up as collateral for a $4 million loan that she failed to pay. delays singers granddaughter called the sale attempted fraud. a claim was the judge said she can likely prove. nascar find ricky's $35,000 for punching kyle busch in a brawl. the fight happened after the all-star race in north carolina, where bush bumped him, knocking him out of the race. in addition to the fine, two of his crewmembers were suspended. back to you. thank you very much for the news update. welcome back. the headline surrounding ai this week are huge. we look at the potential powers well. as the ai software expands, concerns over security and privacy are being raised. microsoft unveiled the optimized copilot product. that will include the chat box, remembering everything the user has done on the computer. that does not sound ominous at all. scarlet johansson alleged the

new voice assistant sounds just like her. just in the previous hour, we did hear from the commerce secretary on efforts to form a global ai safety network with key allies. let's panel up. joining us again is daniel newman, ceo and principal analyst at the discernment group. we have a futurist and the founder of [ indiscernible ]. we had a lot to unpack there. there are many concerns about this emerging technology that is seemingly going to go everywhere. how concerned do regulators, and we as consumers need to be about the coming months and years? i think you are having me. we do have to proceed with caution. at the end of the day, these companies have duties to shareholders, not to the general public.

is not as if these companies are trying to cause harm in intentional ways, but they are moving at a pace that is prioritizing market announcements and market expectations with safety and due diligence, perhaps taking a backseat. we are seeing some ethically concerning decision-making when it comes to the recent scarlett johansson versus open ai scandal and when it comes to microsoft's announcements. i believe the program is called recall.'s stores everything you have done on your computer. you can pull that up at any point. that would include things like passwords and things that are sensitive. that is where regulators come in. market demands are where companies put their interest. regulators help to guide and ensure the incentives are in line with supply society more broadly. >> it doesn't seem out of the

realm of reason for us as human beings and consumers to react more negatively now, and gradually become more comfortable with the idea of having ai as a bigger presence in our lives. i will not set off everybody's home devices, from amazon, google, and everything else. we did not want them in our houses before, but now many houses almost come with them by default, or we put them in actively. how long does it take before we get used to the idea of ai? >> this is like every other technology trend of the last few decades. we will eventually not pay attention at all to the fact that we are giving all of our data, privacy, way. that's not what technology is counting on. they are trying to drive the experience, but they need the data to do it. over time, we have given up everything from a privacy standpoint in order to create these amazing experiences. the trade-offs are what people ought to consider. whether it is social media were mobile and ios. whether it is the copilot pcs,

which are amazing. people are looking at the risk in saying i have already given everything to facebook or meta, instagram, or pick the app . i think will drive a huge trend in the enterprise. i saw that here at ibm and others. enterprises want to figure out the balance between doing ai and protecting people's data and watching this at the pace that the market wants in order to deliver to the shared hold shareholders. >> and want to ask this in the following way, who said are you on? scarlett johansson or chatgpt ? their point of view, you could see that it is flattering that they would ask her at all. when they go create something? think it's a give me something that sounds friendly, warm, unassuming, and almost sexy, and make that the voice of this? where do you come down on this

back and forth? what does it tell us? >> to me, really shines a light on the lack of judgment and ethical decision-making that is happening at open ai. i'm not sure where it will lead out in terms of legalities. they seem to hire another actor. open ai is one of the most well- funded ai startups. i highly doubt they did not seek legal counsel on this. they likely knew they could get away with this, legally. just because something is legally okay, does not mean that it ethically checks out. i put it to the public, do they have our best interest at hand when they are making these types of decisions? this one raises ethical red flags. could have easily been avoided. all of the voices that could be chosen, when scarlet said no, why would you make a decision that but you and the situation to begin with? i do question the judgment and

decision-making. this is one of the most significant ai companies of our time. i don't take it lightly that these are the types of decisions and trade-offs that they are making. >> this is also an environment, because you open the door by asking or talking about the funding of these ai companies. the big technology, are the balance sheets that will fund many, if not all of these operations. how do you view the relationship between big tack, government legislators, and ourselves as the ultimate users of these products? how do we have to coexist? how active do regulators have to be, given that it is big tack? >> at least we have the hindsight of past technologies were we did not do enough. on the one hand, you can see that the government is not just taking into consideration the interests of citizens in society.

there is a bigger geopolitical application of the decisions they are making. this is a tough but important time for regulators. we do know companies, they have that fiduciary interests of shareholders our heart. regulators are there to guide incentives and ensure they align with the public in society's best interest. we hope that it nets out. i don't know if things are moving quick enough. i think we could move a bit faster on things. i will say that we know that the governments are having the conversations about regulating ai. that was something that did not happen until decades later in internet and social media. >> who said he taking? i cannot think regulators can deal with this. she has to take care of herself. it will move way too fast. >> are you taking the side of chatgpt? >> i think she's doing the right thing. i don't think anyone has a

chance to beat the speed that big tech will keep innovating. i think chatgpt will keep going. >> they are grappling with it. thank you for your time. let's continue this discussion with more and another aspect of technology that makes people uncomfortable, the profit motive. we look at which companies are charging and which ones are giving the ai away for free to get us hooked. >> you talked about trade-offs with the panel, that is true when it comes to these companies that are eciding between monetizing or growing the new products. the profit picture is unclear. over the last week, between google ai, open ai, the great amazon scoop, we can piece it together. the trade-off here is growth at all costs versus discipline and charging for models that are

very expensive to build. amazon seems to be going the latter path. they're looking to charge a monthly subscription for ai in the home devices. that would be a departure from where much of the industry is heading, which is the latter, growth at all cost. the major chopped out players have free and premium tears. more recently, and features are being made available at no charge. look at the spring update, chatgpt, they have more features. you had the ai overviews be rolled out to 1 billion users. home assistance represents a new front. amazon may have fired the first shot by requiring a subscription. another factor to consider is the cost to the companies themselves. you can afford to give away generation ai products for free? when i asked about the cost of ai overviews, he said they made their models 80 times more efficient. they are not much more expensive than a traditional search query. if he can bring that kind of

efficiency, even offer free upgrade. that can be dear edge in the battle. it remains, the picture is so complicated. you have the cost. these are the margins. they are narrower than typical companies. you need so much computing power that requires charging something for its. >> that's one of the more interesting angles. still to come, america's aging cars. the rising cost, limited inventory, the pinch of inflation, it is leaving us to hang onto our vehicles for longer than ever before. we will bring you the data on that. to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh!

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yes they are, and last longer? or because people cannot afford to replace their aging clunkers? would you would not part with your clunker. bring us the numbers, if you would. >> the numbers alidate both of those reasons that you gave. let me show you this chart. i love this chart. this is a reflection of what america drives. the average age for a vehicle in the u.s. is 2.6 years. go back to 2002, and it was 9.6 years. it increased by 3 years over the last 22 years. what is the reason behind this? obviously, reliability is a big part of it. you go back to the late 1990s and early 2000, that's when the auto industry turned a warner. you see this when you go to auto auctions. the wholesale auctions, where dealers by vehicles from other dealers. they are lasting longer. as result, there is greater demand for the older models. people know that. that's why they keep driving them. also, new vehicle loan payments

continue to rise. they now top $700. >> the cost of new vehicles continues to climb. it makes it more challenging for people to purchase new vehicles, especially with interest rates and the inflation we have been dealing with. >> all right, here are the total numbers. you have 286 million registered vehicles in the u.s. we are not talking about semi trucks or delivery vans, none of that. we are talking about the vehicles that you and i are driving. there are 95 million that are at least 60 million years old -- 16 years old. there are 24 million that were built before the year 2000. that's the reason, when you look at the auto parts retailers , specifically here, what we are showing you is o'reilly and autozone. when you look at those stocks, they are not at the 52 week highs, but it has been a nice move higher because people want to spend more to keep their vehicles going unless they take

it in for major repair. the bottom line is this, we will see the average age rise for a few more years. people are saying, if i don't have to buy new, if i don't have to take on a $700 payment, why should i? i don't have the bells and whistles, it is an older model. the mileage is not as good, but it is pretty darn good. >> i have many comments on this, but we have limited time. i would just ask this, the car insurance aspect of this whole cost of ownership thing has been front and center due to all of the inflation data over the course of the last year, how much you feel as though the car insurance factor factors into the narrative around new cars compared to used cars? stomachs hard to say how much it factors into it, but it is one of the cost. when you talk with people in the market for a new vehicle, i don't talk to a ton of people.

when people stop me in the airport as somebody says i'm thinking about buying this car, wanting they will bring up, the first is the price and the next is the cost of financing, because the auto loan interest rates are so high. and three, the cost of insurance. keep in mind, insurance rates are going up for all vehicles. it is not just high for new vehicles. >> how old is yours now? >> it's not the only car i have. i have a 2005. those that follow me on social media, i have an infiniti g 30 5x with 222,000 miles on it. >> one of ours is 9 years old. the honda dealership just offered to buy back my 2-year- old minivan. what is that about? >> there is massive demand out there. whether you have a 2-year-old minivan, or a 10-year-old minivan. it is in demand right now. minivans are in demand. the automakers know this. they will ask to buy it from you and they will turn around and

sell it at a nice profit. that is what they are in the business of doing. new vehicles get a lot of attention, it is the used market where they make their money. >> i have seen you, you look at that minivan. i will unload it tomorrow. >> thank you for the conversation on used cars. the stocks are near session lows. coming up, we will check the charts on three key names with very different types of momentum behind him. we will get some technical support from jay woods coming up. as we get a break, we are celebrating native american pacific islander month. api community are seen as minorities. quiet, hard-working, good students. we are often forgotten. it took me years to find my voice, to advocate for myself in the work he's remember, a diverse viewpoint is important,

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welcome back to power lunch. it's time now for some

technical support. we have three stocks making some technical moves to bring into focus. jay woods is the chief global strategist. great to see you again. >> great to see you. >> welcome back. let's obviously start with nvidia. they're reporting after the bell. expecting revenue growth upwards for 200%. most importantly, what do the charts tell you? >> we're looking back two years. everybody is talking about it. what has it done? this is classical technical analysis 101 when you go back two years. here you have an inverted head and shoulders. 80 points from the head to the neckline. it went up 85 points. what happened after that? it gapped. and this is what we're going to focus on in earnings. we've had three major gaps now, of course, let's focus on this one, and let's focus on the last one in february. every time it has gapped up after earnings, you have to watch how it trades the next 30 minutes to the next hour, the next few days. it has held and it's gone on to a new leg two of these times. there is one time i want to

focus on, which was this neutral trend, the last half of last year. it was up 240% last year. it did nothing for five months. it had a 20% correction because it gapped afterhours in august, and what did it do? it closed up a dime. that's very negative. >> let me take us back to that for a second. it gapped which way after hours? >> it opened at 5:02. closed at $4.80. so you watch to watch that price action. what did it do? it channeled. so this is what we want to watch now. we have a potential channel. we're trading at all-time highs. this is fantastic. closed over $950 two times. if it can gap up, which we believe the earnings will be fantastic, the guidance should be good. watch how it closes, watch how it trades after. >> great. >> you could have it set up for a trap and trades into neutral range. it would be a great buying opportunity because long term, let's focus on long term. >> it doesn't seem like we would have a lot of bearish?

>> exactly. for the traders, you've got to watch it. for the long-term investor like my mom, stay in the stock, it will be there for the long term. >> let's go over the next couple. robin hood up 60% this year. we haven't talked much about that here. you think the trend here is change for the better? >> what have we seen? a series of high and lows over a long period of time. we've had a breakout above this area here. and now we're trending higher. we stalled a little bit. they had a notice. but what did it do? it held a 50-day moving average. fundamentally they're doing okay. this 401k program is bringing in older investors. >> it's expensive though. we'll get into that. >> but let's look back. the ipo to 38. it's now broken out above $16, $16 is your stock. yes, the risk reward set up isn't ideal, but it can slowly trend back towards $30. it's a place to stop at $20 and $16 if your risk s greater. but the trend has changed and it is worth noting here.

>> very interesting. finally the last stock, pfizer. just want to take a look at all the vaccine stocks today up across the board. bird flu had us thinking they could do something to the livestock if it is human to human. and moderna up 10%. pfizer up 2%. that company also announced $1.5 billion in cost cuts. take us to the charts. >> moderna is one that's broken out. what i see in pfizer is opportunity. boring stock, no offense, but long-term risk reward. and the setup is favorable. we had a down trend that broke, broke above the 50-day moving average. now it tested its 200 days. it's pulling back. this pullback is an opportunity to buy with a 50-day stop, 50- day moving average as a stop. then the upside, tremendous possible reversal. we could go 35 to 40. and then it goes slowly, you have 5.8% dividend to kind of put you to sleep at night as it is really not doing anything. and then people forget about c.j. that deal closed in december.

$43 billion deal. the pipeline is tremendous. expect news to happen because this quarter, things turn around. their guidance was solid. so i think we're starting to see prices turn around, favorable, risk reward over the long term. >> it will be fun with nvidia. jay, thank you so much for your time. appreciate it. jay woods. we'll be right back with more on the markets. with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

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welcome back to power lunch. we want to call attention to this notion here that the stock market is just hovering above session lows right now. the dow down about 270 points. it was down more than 300 at the lows of the session just this past hour or so. s&p is off one half of 1%. 5,294. nasdaq off 1.5% as well. it's shifted from a wait and see for nvidia. >> sure. >> to the fed minutes maybe doing some heavy damage here. >> don't know if that is also contributing to the home builders we are seeing. home sales were down in april,

and rates are backing down. toll down 8.5%. they also had earnings. lennar down 4%. >> the home builders key to the story for the interest rate pictures as well. of course, nvidia coming up in maybe just a little over an hour right now. >> very exciting. >> $2.3 trillion company. you're bullish, you have to bet that number keeps growing. >> you have to do it. >> thanks for watching power lunch. we know what the judge will be watching. >> closing bell starts right now. all right, guys, thank you so much. welcome to closing bell, i'm scott wapner, live from post nine here at new york stock exchange. this make-or-break hour begins with a make-or-break moment for this market. nvidia's earnings as dom was saying in an hour from now, rarely has one stock mattered so much. which is why over the final stretch, we'll size up what is really at stake this evening. in the meantime your score card with 60 minutes to go in regulation. well it looks like this. we were green, well tech was green. some of the other sectors were green as well. fed minutes