♪♪ [kid laughing] ♪♪ [water splashes] ♪♪ ♪♪ [ripple sound] [laughing] [water splashes] [continue laughing] ♪ ("horn house") ♪ ♪♪ [chuckle] ♪♪ welcome to "power lunch," alongside kelly evans, i'm dominic chu. we have a lot of coverage about inindividualsia's blowout report, of course, kelly, but there are other stories we watching today, including the issue igniting taylor swift fans in both political parties, the

department of justice looking for a breakup of live nation >> plus the $150,000 a year housekeeper in palm beach. good help mob hard to find the demand for housekeeper and domestic wokkers are driving the salaries through the roof. a check on the markets first, though, the dow is turning sharply lower by almost 550 points boeing is a big decliner tonight. , but the s&p is broughtly down 0.35%. live nation one of decliner,

and. dom, morgan stanley says no sign of slowing down in the price targets. estimates have jumped almost over a billion to 27.7 billion the analysts like hearing that demand is improving as well as broadening across sectors, which is why karnor fitzgerald wrote the midnight train is executing to perfection. so, definitely more up side. as for the surprise stock split, it won't change nvidia's

fundamentals, but susquehanna said it would reinvigorate the retail crowd while needham says it would be more affordable. deutsche bank, though, one of the four banks keeping a hold rating, because they say the stock is already fair valued, but did increase the target to a thousand bucks regardless, the company has added over $250 billion market cap today alone, that's the equivalent of an entire amd, a competitor >> kristina partsinevelos superfluous comparisons are abounding a a day for record highs for nvidia thank you. >> thank you. we're going to continue the conversation our next guest just raised his price target to 1200 bucks a

shares joining us is raymond james' senior analyst this is a situation where everybody, i guess, is on one side of the boat, there any risk to everybody being so bullish on the prospects for nvidia >> yeah, thanks for having me, dom. so, that's an interesting question right now the demand for a.i. accelerators, the gpus that nvidia makes is so strong. on top of that, you know, they also have this new product called blackwell that will ramp starting in the q2, q3 time frame. we don't think there's much risk in the short term. obviously the demand has to continue if you look at their customers, the big cloud companies, they continue to spend aggressively as long as the spending

continues, we don't see risk in the short term, at least what kind of risk could there be let's say they're all spending, and investors, customers are almost expecting these companies to spend on a.i. what exactly then has to stop in terms of spending? what can derail this nvidia narrative anytime in the medium term i guess at the end of the day when you're spending, you need some return to justify this cap ex investment we're seeing today. the competition is highly intense. obviously microsoft, google, facebook, they want to maintain their lead in a.i., so they're continuing to spend. i guess, if there's no return on investment investmentiumly, in a slowdown the spending we're seeing the other potential risk is

competition. they have done a good job maintaining their lead, the one, you know, we are watching closely is what we call custom silicon, the chips made by the customers themselves if you look at google, they're already using their own for a few years now. most others have also announced their own chips. so that could be an issue in the next one to two years. >> it's the company's sheer size at 2.5 trillion. is 3, 4 trillion next? it's hard to contemplate >> as i said, kellikelly, is no the -- for a company that is growing, almost doubling this year, this was a company growing

20% to 25% our view is the problem is sustained for the next two to three year, so as long as the numbers are going up, you expect the stock to outperform. >> i want to call attention to viewers and listeners on sirius 112, we're down about 600 points, so we'll keep an eye on that for you sirini, you mentioned the next-generation a.i. chip, which is blackwell the current one is hopper. there were some concerns because of this blackwell being out there, people would not spend on hopper to go to blackwell. it seems like the hopper product is pretty darn good. if you're not first in line with the blackwell it seems like they

can't have action first. that's a very good point that you made if you look at the results for the first quarter, they grew in about high single digits, but the non-cloud portion was much stronger that tells us that the a.i. ad adapgs and the so-called sovereign cloud, i think of many nations are investing in a.i., so there's still a lot of pent-up demand obviously there is some concern going into the print, but the management is not seeing it, from what we heard the blackwell seems to be ramping sooner than we expected. if the demand for hopper is strong and blackwell is very strong, and the management also said, you know, there will be supply constraints on blackwell for the next few quarters, so right now it's looking very

good. >> thank you we will leave it there and the market is still tanks. thank you for joining us in their announcement of a stock split has people speculating nvidia could be added to the dow itself, yes bob, who would they replace? intel? >> that's sort of an obvious choice, but it's not a shoo-in now, decisions on additions and deletions is made by a committee. there's no specific rules for inclusion or exclusion, but the committee has stated a stock would be represented if there's an excellent reputation, sustained growth, and large number of interest by investors. companies have been deleted for many reasons, though look at the other side of this,

including a merger or acquisition, or if the company experiences financial distress it may come as to believe that there are other companies that better represent that sector finally, this may be the most important thing, there's the stock price issue. unlike the s&p 500, the dow is price weighted a stock with a price way below all the other stocks would make that company irrelevant in the index. that is undesirable. right now, united health is currently the highest in the dow. intel is currently the lowest priced stock in the dow. the average price of the 30 dow stocks is $202 what you want to look at is the spread between united health and intel. it's unusually high. the committee has said they do monitor when the highest price has more than ten times that of the lowest priced stock.

united health's price is 17 times more than intel, the high versus the low but also, remember there's cisco and vising are also ten times smaller, so the stock split, and intel's lou peru definitely makes it a dow contender, but the committee also has had a clear preference to stock that is well seasoned, not suddenly superstars >> and if only it with, bob, perhaps the whole market would be doing better right now. what do you make of that >> well, think of what has happened this month. may is supposed to be a down month, sell in may, go away. as of yesterday we've been up 6% everyone has been wrong, so today, look at the open. strong open with semiconductors, opening at new high, and they

told right into them so a bit of exhaustion on the semiconductor play, and we had a spike in the yields. i think it went up to almost 4.5, and the two-year did as well that's basically the high for the month, so you get a little exhaustion from the semiconductor rally, a spike in yields, and a little momentum. the whole market is basically down all down 0.8%, coke, exxon, caterpillar, a broad little decline here after a rather remarkable month. >> bob, thank you very much. despite that nvidia enthusiasm, stocks are selling off with the dow especially down nearly 600 points. steven dianicola is with us. rates are backing up a bit

do you think that's what's at fault here >> sure, as far as history goes up, nvidia is doing its best -- are we allowed to talk about stocks other than nvidia >> nope, nope. i'm equating it to the beatle at shea stadium in 1965 the stadium is packed, people are freaking out, passing out in the stands, and were they a good band did they deserve it? yeah, when you have a company growing 250% year over year, it's well deserved you question is, is nvidia taking of the on this channel everywhere we look if you go through the lincoln tum, you have bruce springsteen playing in an empty bar, who is a pretty darn good musician as

well, i would equate that analogy to small caps right now. there's a lot of opportunities in this market >> i know they've been don't better lately, but make the case these are not the stok stocks that were be left behind >> the reality it's been apathy, not fundamentals if you look since november 21st, november 2021, which was essentially the peak of small caps it's been 5x the norm. i'm looking at 30 years of data right now. that relative valuation disconnect is 30% lower than historic norms so you have a sector that nobody is looking at.

that as underperformed five times more than normal now you take the fact of what happens when you have an interest rate regime change. i don't know what's going to happen in the ten-year in the next month, but let's look out for the next year our two. i'm going to bet the next basis move is do you think, not up in that environment, what happens? valuation is the leading factor of performance so you have a sector that's nobody in. where the fundamentals are doing well at a point where maybe we're going to get lower interest rates eventually. i think springsteen playing an empty stone pony makes a lot of sense. >> the as bury folks are up in arms now --

>> look, it's memorial day. >> i remember back in the day when the kauffman funds were probably the blue chip stock pickers out there. >> still are. >> i know they are what are the stock picker trying to do with this kind of market. the hardest thing is to let that narrative play out so let's look like a company line aspen aerojets. the ticker is aspn this stock is down from a peak of 65 down to 27 today, all

right? it was at 65 in late 2021, 27 today. i have not seen -- they make insulation that enadapts late lithium batteries for evs. so all they oems have to make sure these batteries are safe for the consumer i have seen their margins go to 30% last quarter look where it was two years ago? you're still well off the highs. the business momentum is not measured in quarters, but measured in year another company. meg is the ticker. it cement -- says pfas is back

for your body. >> my town is all over this. i'm go ahead shades of gabelli here, but your point is well taken. you mentioned to get in about five minutes on a non-nvidia name. >> i tried have me on anytime we're all over the right now. at the dow is down about 600 points we were down 607 at the lows of the session. we'll keep an eye on that. following the money trail, the a.i. power story keeps growing, and power consumption grows along with it. alternative power sources are being sought out pippa stevens is following that

money trail and has the story. >> dom, 'em here at a new solar site that will be powering a new meta data center, and we have the details up next on "power lunch. ading platforms. bring your trades into focus on thinkorswim desktop 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 the solar stocks have jumped this past week, led by first solar on hopes it could be a new provider for the massive energy demand a.i. will need in the future meanwhile, a new solar panel farm funded by the inflation reduction act is being developed outside phoenix, arizona, with the capacity to power thousands of homes, but the majority will be used to power meta's data center needs pippa stevens is live from the solar field with more on that story. it's hot and sunny, and that's good for the business. >> that's right, dom

the plan is finishing up construction, but two thirds of the power will be for a new meta data center. gen a.i. is power hungry, with forecasted demand will triple by the end of the decade just as more things go electric. >> this is the most growth we have seen in the past 30 years we're seeing that from semiconductors, from battery companies, but we're also seeing a lot november digitization coming on board. >> new renewable energy sites like this one are moving to fill the gap. it was announced today a $680 million invest from j.pmjpmorgan

jpmorgan provides financing in exchange for tax benefits. under the inflation reduction act, jpmorgan has the option to sell those credits to another company, unlocking a big new funding pool for renewable energy when you're here on the ground, it makes sense it is very hot and nothing but sun. >> so let's talk about the future development plan. what exactly does the future look like, and what kind of capital do you need? inflation reduction acts in perpetuity to keep funding projects like this or at some point is it self-sustained from a private standpoint >> reporter: well, renewable energy is already competitive with our forming, also other parts of the ecosystem have always been subs dewsed, what is important is before, only really

big banks would be willing to take on the equity investment. now you can sell those to another party that wants to reduce the tax bill while helping on you clean energy. i think the real is they projects are expectative, so it's helpful to get them off the ground, but once you have it all built, the sun is a free energy source that's why companies are building that are portfolio with wind as well as solar and storage portfolio. >> that's fascinating the transferability angle is really much to ponder in the midst of all of this, pippa, thank you very much. as we head to break. boeing is weighing on the dow, contributing 90 points of the

decline, but we're down 605, so it's pretty broad-based. the nasdaq is down four tenths, boeing is down 7%. the ten-year yield we're watching as well we're back after this.

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bond yields are rising rick santelli joins us with more. higher versus the lowest yield yesterday, and all maturity have traded, that's a momentum builder.

>> labor is looking good. >> i think some of the things that people aren't looking at is it's a big option expiration, and there's a lot of open interest there on the downside puts when it doesn't materialize, that means positive flows for the market you have three holidays in the next month memorial day, but now we have

juneteenth falling on a wednesday, breaks on, thursday, july 4th, op ex after that so it creates a lot of drama and charm, but flowing that come back into the market, so that supportive ball is very -- it will be choppy with there is, but i think that is the biggest story. we have a slow summer, with low liquidity. >> and when you have vol is well supplied, i did put an easier spin on some of that for some viewers, if you looked at the volume, open interest, it's most affected by the first 15 minutes and last 15 minutes of trade, a majority of that gets done, doesn't it >> it does, and a lot of compression coming in during

those times, which pins the morning action and the end of the day action so a real acceleration. >> real quickly, we're about out of time. did the minutes surprise you last time? >> no, the fed has been without a rudder for some time they have the wrong tools for the problem here trying to deal with that rhetoric they're using is helping to make things go in every which direction. the fed is not the absolute high dom, back to you rick, thank you. let's send it over to contessa brewer for a cnbc news update. a louisiana legislature has -- the first measure requires doctors to have a specific license to prescribe the drug

it also makes it a crime to possess the drugs without a subscription that bill now goes to the governor's death for signature. the political consultant accused of organize a.i.-generated robocalls was indicted in new hampshire, fined $6 million by the fcc. steven cramer commissioned the message that told thousands to stay home during the primary he said he only did it to demonstrate the danger of deepfakes. the diagnosis of adhd are on the rise a jump of about a million from 2016 the cdc says that increase could be the product of more awareness, or maybe it's a reflection of how kids were developing during the covid-19 pandemic it raises a lot of questions

>> contessa brewer, thank you for that as we head off to break, we want a quick power check on the s&p 500. on the positive side, no doubt nvidia is holding strong meanwhile, on the negative side, life nation fall by 8% following a department of justice antitrust suit against the company. we'll be right back.

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i have a very mechanical brain. why are we not rethinking this? i am more... i'm more than who i am on paper. welcome back to "power lunch," as you can see here, the dow is down about 610 points , all 30 dow components are lower. boeing, caterpillar, costing the dow, the nasdaq is down also turning lower this afternoon that's despite blowout quarters from nvidia, which is still holding on to its gains, up 9.5%

mike, why isn't the nvidia optimism lifting all boats for week now we've been talking about nvidia being the tea leaf or indicator for the health of the broader market, so what gives? >> i think it's an indicator for the broader a.i. cycle, which has been energizing a huge portion of the nasdaq. it doesn't seem by they big tech companies, it is interesting, the market is holding in place, to break further out of the range. we printed a new report at the open and it didn't hold. why? we have this ongoing sensitivity

to any sets of data that go outside the zone of the soft landing channel. limb was talking about bond yields reacting as much as they did to steal fed minutes i mean, all of that suggests we do have this raw nerve that says maybe we can't be as comfortable as we thought about the besign solid growth we're a couple percent from all-time highs even in the dow it shows we have a 7% four-week rally maybe needed to back up off of that. that they don't have a market-wide coattails. to be clear. >> they're not the clear-cut signs elsewhere in the markets that things are teetering on the edge there are some underperformers in certain part of the market that may be more economically

sensitive, but this is a situation where people are like, hey, the path of least resistance has almost instantaneously shifted to the down side. >> i don't know that i would declare that, but even as the indexes were doing well, there's been some deceleration there obviously the reaction to a lot of retail earnings fall into that category. the rest of the world seems to be picking up. financials until today have also been a bright spot i think you've had a brought enough lift, that you give the benefit of the doubt that the up trend is still in place. i do wonder if just that little brief 5% reset lower, where you didn't get a huge cleanse of investor sentiment was enough to get you moran that this really i was also listening to all this

calm ahead of us, and we do actually have a lot of this divergence in different parts of the market obviously a.i. related is working today, and the rest of the market is not. that tends to depress -- so we'll see if there's more of an action than just a excuse to book some profits after this unare. >> mike, thank you so much we appreciate it we'll be brack with more on the market on "power lunch," right after this

welcome back to "power lunch. consumers are continuing to collide with companies over higher prices. growing frustrations online, and slumping sales with companies pushing more options, and restaurants are further increasing prices in california. indicate rogers has the story for us day, is the impact as

significant as some of the report out there would indicate? >> dom, it totally depends on what type of restaurant we're talking about here i'll walk you through it annual u.s.s have been tracking these, that it depends on the brand and restaurant format. companies are not created equally. research for the that chipotle and shake shack increased prices through mape 15th, the firm projects these two names with tailwinds from the price hike. sweet cream, which is another name that is not seeing pullback, also implicated a 5% increase in california others have raised prices until 3% through may 15th. this makes sense, lower-income consumers have tightened spending jack-in-the-box noting that higher price disoffset some traffic drops which will likely be the case for the fast food

names. the highest increases were chick-fil-a and starbucks over 8% it's vowing to bring back occasional customers, given the challenges the company sees in the last two quarters. the company is holding off most of the casual dining names with one exception here, chili's back over to you guys. >> it's all about the details here can we talk a bit about, kate, just the differences and where we are seeing some of the pushback on prices, special for value items at those burger chains >> we reported earlier this week about mcdonald's and some of the franchisee experts, and to keep that upcoming $5 value mean, past the -- the promotion begins the end of june. it has marketing support so how to keep it on the menu

past that time frame i obtained a company of the memo as an independent advocate, and essentially in it the noa board writes for offering to be affordable for consumers, they have to be affordable for the owner/operator, and to sustain that, an investment some mcdonald's will be needed. mcdonald's declined to comment on that, so we'll see how it shakes out >> kate, thank you very much for that >> thank you. speaking of high costs, elsewhere in the economy, higher wages are being fueledly good old-fashioned demand housekeepinger in palm beach are earning as much as $150,000 a year. >> it is kind of unbelievable. thousands of wealthy new yorkers moved to florida after the pandemic, bought big homes in palm beach and miami the problem is there weren't enough experienced cleaners, now

the wealth boom has touched off a house cooper shortage. salaries have more than doubled in the past four years the typical salary is $100 to $150,000 some executive housekeeping are topping $200,000 bidding wars have become common and employers are getting frustrated >> they're coming to us and saying, you know, we want a professional housekeeper, we tell them the salary, they really don't believe us, but there's no getting around it, if you're looking for quality, experienced housekeeper. you're going to have to pay. >> hotels, resorts they also have a shortage, but that's a different labor pool, since house keepers for the wealthy have very specific skills.

you can read more about the shortage and where the wealthy are investing in "inside wealth" that's my new newsletter this is kind of the perfect storm of inflation in the wage sector, we have seen it in services, and its employers, very wealthy employer who don't really have a ceiling on what they're well to pay for a good housekeeper. so those good things coming together, salaries in palm beach are much higher. >> dom, i think -- >> i don't know if you can afford it. >> if they have a 401(k) -- >> a 529 plan? >> health insurance -- i can do that in retirement in florida. today is red nose day. the networks of nbc are a bit part of the effort to raise money to fight childhood poverty in the u.s. and around the world. this years marks ten years since

the event began. for food, shelter, health care and education, touching the lives of roughly 35 million. to donate go to rednoseday.org, helping things out we'll be right back. 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. the key to being rich is knowing what counts.

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all right, time for today's -- we are looking at three names making headlines. courtney garcia, senior wealth advisor of capitol management and a cnbc contributor. first up, dell technologies continuing to share in partnerships and shares have been on a chair over the last year surging by 230%. dell technologies also getting an analyst upgrade. >> reporter: dell technologies is something we are optimistic on as one of the beneficiaries of artificial intelligence. the only concern that it has done so well over the last year. trading almost 20 times next year's earnings which is double the level of this year as you are clearly seeing some of the optimism getting priced in but

i think we are itting the tip of the iceberg going forward and when you will see that demand for servers, that is where the company will benefit. the other side is pc demand. there tends to be a three-year cycle without so we are about due, the second half of this year is expecting pc demand to pick up, again. we will likely need ai enabled devices and that is the other side of the business that will benefit from artificial intelligence. i still don't think it is too late to get in and it is something you want to hold onto for the long run. dupont, they have just announced they will split three publicly traded companies. there are a number of companies trying to do that. >> i don't think this is going

to be as exciting as artificial intelligence but the fact that they are splitting out into three companies, i think that will unleash some value for shareholders. maybe not as exciting but something that has an upside, as well. >> the name ralph lauren, what is the trade on the luxury? spent they really beat expectations which was fantastic to see and i really like what they were saying about the consumer where they used the word resilient. if they have a consumer who is standing strong, this is absolutely what you want to see. retail space is tough, especially as people are having issue where the dollar is going so i would not be adding new money but i would hold onto it. >> senior wealth advisor, thank you very much. a quick check on the market

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welcome back. the dow jones is down 627 points and boeing is the reason for that but it is broader based . >> the s&p is lower in the session, the real underperformers besides the dell -- dow jones is the nasdaq. we have seen some of these small-cap stocks underperform when the interest rates rise. we are seeing the interest rates rise, right now. but not huge. expect 10 years

inching back up to 4.5% that we are about 30 basis points from the highest in october when the tenure was at five. if that moves, you can see and market. >> all right, that is it for power lunch. the dow jones is down 625 points. >> and we will handed over to closing bell. >> i am scott wapner. let's begin with this accelerated selloff and a question about tech, whether it is time to take some profits in that highflying sect. that stock is surging today and the other big names are not. they are falling pretty good and we will show you the make it cap. there is apple at the stop -- the top, down at 1.90%. microsoft is lower,