♪ good afternoon, everybody. welcome to "power lunch. alongside kelly evans, i'm tyler mathisen glad you could join us on this friday. coming up, a double feature this holiday weekend could be a make or break for the box office coming off a series of flops is the truth this summer will never, ever live up to the barbenheimer hype of last year. >> if this summer is a dud for

the industry, could it mean less traffic for the malls and shopping centers where the theaters are located there's already signs of weakness with one of the largest facing a cash crunch more ahead. move, movers and gainers in the retail space with deckers, the maker of ugg, up 13% right now. ross stores up 9%, surging after results. more names next week, including costco, best buy, and gap. two big moves in the pharma space. merus soaring 30% on promising results for the melanoma drug. immunocore dropping despite its own melanoma medication. burger king, owned by restaurant brands, is offering its own $5 value offerings to contend with mcdonald's recent rollout. could this be a pricing war? we'll have more later. let's begin with the markets, overall higher today after yesterday's divergence left investors a little puzzles. the dow recorded its worst

session since march. nvidia gained 9%, not to mention nvidia, alphabet, microsoft, they were responsible for nearly all the s&p 500's growth this season now, with the quieter summer trading months afround the quarter heading into the three-day holiday weekend, where should we shift focus? joining us is the chief investment officer joining us for the hour is tim sarah, how do you see the market continuing through the summer? are we in the middle of a strong and well-established bull market, or is it something a little more vulnerable than that >> markets are about to close out the fifth week in a row of positive returns for two reasons. first quarter earnings and inflation data first, eniarnings. nvidia is wrapping up the earnings season with a very strong quarter

overall, earnings are strong over 80% of companies beat consensus. second is inflationary data that mellowed out we started with a reacceleration of inflation, but recently, cpi and ppi data came in at expectations, which is positive for the market let's look at the other side of this what do we need to be worried about? two things, the fed and manufacturing data manufacturing data is the good news/bad news camp economy remains strong, inflationary the fed is hawkish, expecting one to two rate cuts this year, down from the seven the markets expected the beginning of this year >> tim, i often wonder, and saira mentioned, 80% of companies have beaten the forecasts. what are t-- or the consensus. is the consensus bad or earnings good. >> we're worried about this concentration in eps but it is a function also of where you are seeing at least momentum in some of the broadening of the overall markets. think about industrials. you think about what we're hering in terms of the margin profile. a lot of companies, i would say

especially as you get into transports and even the banks. i know we were disappointed in net interest income from some of the biggerseeing other parts of business year of efficiency is something meta coined but other companies are doing it, too. i will say, we're probably halfway to our 10% earnings growth in '24. we still have a ways to go street is calling for 10% aps growth, and, obviously, that's something that's still possibly in question. >> saira, i wonder -- i take your point about we've been on a decent run for the markets, but was this more of an inflection point this week where, however things exactly shake out on the close here, people are starting to wonder, okay, nvidia beat but it wasn't enough to lift the markets. the rate stuff, the fed stuff, the hikes that could be coming, is it goldilocks >> the market, as tyler mentioned, has been very much driven by a handful of tech stocks the earnings are coming from

those tech stocks. can we broaden out from here if inflation settles, there is a chance the market widens out the coin toss may be decided next friday with pce data. i expect it to come in line, so good news. i'll be focusing on portfolio management that'll be hot because the markets rallied. also, health care, autos, and air fare are going to be important in the data. if inflation starts to move toward the fed's target, i think the markets can hold on as long as the economy remains strong. then we have to question if the economy starts to slow, what landing do we get? do we finally get into the recession? i think these higher interest rates and inflationary data eventually will lead the market into some -- the economy into some form of a recession maybe not until later this year or early 2025. >> how concerning is it, tim, so much of the earnings power has been concentrated in five or seven stocks >> doesn't bother me. >> why not >> first of all, the leadership in the markets come from the semiconductors they continue to lead. yesterday, certainly after the nvidia print, you have semiconductors making relative

highs to the s&p this is where we're getting growth we're seeing a capex cycle we talked about it to me, it is almost reaffirmation why i think some of this is incredibly bullish. we also have to remember where markets have come from we're up 8% since the april low and up 30% from october. vix is 4.5 lows. there is complacency out tlchlt y there, and you can argue people are expecting too much out of the top five to seven stocks in the market if anything, we've heard a story from the broader, you know, corporate dynamic around margins that's pretty good market haves had a big run the fact that we got stronger -- >> big run in 2023 good year. >> complacency is alive and well something to think about the fed is always lurking, although, again, the fed scared people with some stale minutes this week on wednesday rates are moving higher. if you look at that both -- go back to july of 2020 you could also say, hey, even

since the beginning of the year, the bottom end of the up range traded higher. jgb yields are pulling up rates. there are reasons for equities to be concerned, but to me, it is not the eps profile of the last earnings season. >> i might add in. >> go ahead, saira. >> to what tim said, you know, should the narrow market be concerning i'm a little more concerned. it's like if you are looking at a stock. one catalyst or ten catalysts? there's one main catalyst for the market it's been tech earnings growth and a.i. if that catalyst starts to fall apart, which i don't think it imminently will, then you have zero catalyst. i'd like more catalyst for the market, broader strength across the board, more companies participating with their ability to sort of continue to growth and raise their forecast and beat earnings going forward. if we continue to have that, the stocks and the market will broaden out. >> great points. i have to say, banks up 75% from october. we're seeing a lot of the industrials, the transports not so much, but i think it is a time for the broader market.

>> that's interesting. saira, appreciate your time today. how are retail investors reacting to the market divergence michael noss, chief trading strategist what's the buzz? >> good the see you. you hit the nail on the head it seems this divergence got everybody a little shaken up yesterday. we had nvidia doing very well, then we also had the dow jones and other things pulling back. like mentioned before, i'm not too concerned about that because what's happening is you have your leaders leading. if it's a sports team or if it's the market, don't think there is anything wrong with your best players scoring the most points. we're seeing that with nvidia. we're seeing it in the semiconductors and seeing that with the market overall. if we take a look at the dow selling off, where you have the semiconductors and the nasdaq doing really well, looks like about to break yesterday's high, then that just shows us there is

a rotation into more risky assets, and assets in which people are okay and market participants are okay putting a little of the chips on the table on things that might be a little risky. in my opinion, that's not what we see in bear markets. >> right i like the basketball analogy. if lebron is scoring, the team is going to win. that's nvidia. >> you're a hockey fan, too. we need more out of kreider. come on, kelly. >> it is interesting, turning quickly on this, even for all we were making of stocks, the outperformers have been commodities, have been bitcoin some of those -- it could be the third year of fuour commodities take the leadership role. >> the copper move is a little too speculative. i think it is a little scary, even though, you know, dr. copper should be telling us something. not just about supply constraints but a little about the demand side. there's m sn&a in the dynamics space, as well gold will continue to move higher, i think. gold had a great run, as well.

look at a 20-year chart on gold, one of the best you'll see that is a function of deficit, rates, the same things driving bitscoin. >> react, michael, to bitcoin and ethereum. >> as a market technician, the 20-year chart in gold is phen phenomenal same thing we are seeing in bitcoin and ethereum with the ethereum news yesterday, the etf, you'd imagine that ethereum would be outperforming. i have this chart showing that other than when the rumor came out of both the ethereum etf, you can see here that initial spike around may 20th. that's when the whole world found out there was potentially an approval of an ethereum etf ever since then and before then, bitcoin has been outperforming in this chart. that's why it is moving sideways slightly lower it seems like with gold doing well, talking about the inflation trade and all that, bitcoin is doing the same thing as the quote, unquote, digital gold of the word, it seems to be

outperforming ethereum, which may lead to the etf being a sell the news event as people go to the commodity-driven crypto versus the usage. >> tim, one of the points also that michael is making is that people still want to chase high tech you mentioned a moment ago, citi group is up. the industries are up. they're up, but it still looks like people want to be with the winning parts of the market, the parts that tom lee says could grow to 50% of the profits of the s&p 500. why do we have to stop at 38 >> well, what we heard from hyper scalers and their numbers, capex is growing 40% a year. the growth that is surrounding what's going on in a.i., look, i understand there's hype attached to it. there is valuations. we can spend a lot of time talking about how nvidia, despite this move, is still trading 1.7 times in s&p valuation, which makes it cheap to the ten year. anyway, i think the high-tech part of the market, which is the place a lot of retail is excited about, they'll probably continue

to be disproportionately invested there and allocated there. right now, i have to say, i don't think that's a big deal. >> what does history tell us about how this ends? is it going to end well? >> well, when i see a vix sub 12 and people not pricing in geopolitics and concerns with the deficit, with our political process here, the ratings agencies are looking at washington in a way they never have before. as a guy that invested in emerging markets, it is interesting to think how we somewhat resemble turkey, with all due respect to turkey. you know, these are things that do concern me. so nothing goes straight to the moon if you look at a move we've had, i mean, semiconductors are up 82%. last year, we'd be sitting here memorial day weekend deciding what to throw on the barbecue and wondering, should we own semiconductors again >> right. >> yet, they're up 82% in the last year. that's concerning. but if you think about where the growth is, where -- they are really the new commodities i think this cycle, i look to be

pessimistic, but the market that i have is not one i want to fight. when i see semis making new highs to the s&p, for now -- >> traditionally a leading indicator, a sign. >> michael, final thought? >> trends persist, right at some point, the trend is going to end in these super cycle a.i. type names. but i don't think the best move is to bet on that trend ending we need to bet on it to persist until something tells us otherwise. you know, there's the famous george soros quote when i see a bubble, i run into it if it is a bubble, which i don't believe it is, we have no signs of it slowing. just like i was on last week talking about the mean stocks, and my final thought was have a plan to get out when you start to see things weakening. i think it is no different here. i think we ride this trend as long as it persists, and we work on a plan to say, when i see nvidia do this, you know, break down a 20-day low or moving average or whatever it is you decide it is, just have that plan to exit and just enjoy the

ride while it lasts. >> michael, thank you very much. tim, you'll stick around michael, see you again soon, i hope. apple looking to avoid getting bruised. the worldwide developers' conference around the corner many waiting for the company to announce an a.i. partnership of some sort. with so much criticism around the space, isapple being overl cautious we will discuss in "tech check" next

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welcome back, everybody. a.i. had its share of black eyes with drama around openai as well as google's shaky rollout, all of which could put apple in a tight spot as it may be considering partnering with one of those two steve co-bakovac has the detailn the "tech check." >> it's been a tumultuous week at a.i going through growing pains and

a bunch of controversy with openai, it is actually different. its technology is the a.i. foundation for microsoft, for example, including those latest a.i. features coming to a fresh crop of a.i. computers announced earlier this week. plus, apple will reportedly use openai tech for a new a.i. feature on the iphone and other apple gadgets. such deep integration with the two largest companies in the world means openai's problems and controversies, from safety issues to what openai uses, fall on microsoft and am,pple, as we, until they can make something as good on their own. to recap the departure of high-profile co-founders and execs who were concerned the start-up wasn't taking safety seriously enough they disbanded a specialized safety team after that departure, then, of course, scarlett johansson debacle playing out this week. questions whether the company and ceo sam aultman were fully

honest about the situation i asked about the use of openai technology given the latest issues >> we have confidence in sam aultman with the team. they have great work that's the focus of openai, to build a great future of a.i. for the world. we work with them quite a bit, and we also add our own extra efforts we put on top of that. we have great confidence in their work and the work we put in our products. >> let's spin that forward and think about apple, which is more vocal about safety in its own products than any other tech company. it's been critical about rivals like meta and google for playing it fast and loose with privacy issues not to mention how concerned overall apple is about its reputation we saw that with the ipad commercial a couple weeks ago. openai deal would be a risk for apple if it does go through as planned. will need to ensure it has its own safety efforts, like microsoft said, layered on top to ease concerns of course, the drama is probably not over with openai

we'll learn more about the relationship on june 10th at the developers conference, guys. >> why, specifically, is openai perceived, in your words there, as a risk to papple? why would it be a greater risk than partnering with some others >> keep in mind all these controversies that are happening right now, tyler new york ci you know, they have to own what's happening at the start-up, as well, including safety when they disbanded the safety team a couple weeks ago, that raised all new questions over how the program is being developed. there is a narrative going on right now, tyler, that ceo sam aultman wants to move forward, make money, get products out there quickly without necessarily taking the necessary safety steps others in the organization, including one of the co-founders, believed it was necessary. that puts apple kind of in that risky bucket it'll be sbinteresting to see hw apple frameds that, partnership, and what security layers on top

of that apple will already have. >> apple used to be the driver for the market, or maybe we can argue it still is. you excited about what they might see, or are you nervous? >> maybe we're all happy that apple seemingly lagged in a.i., but the reality is, there is a huge refresh we had steve iseman on "fast money. he said it'll benefit not only where apple ultimately sits but maybe the biggest refresh cycle they've ever had if you think about what tim cook said at the earnings call, you know, apple is seemingly -- first of all, apple, as much as we talk about innovation around apple, it's often they've just been seamlessly, back to what tim cook said on the call, integrating hardware, software, and services that, to me, is where -- if you look at apple the stock after underperforming the s&p by 20% when we got the market crazy, it's outperformed by 9%.

leadership may be back the market doesn't need apple like it used to. again, counting apple out in the a.i. world is crazy, especially since they haven't really anted in yet this is why. they have to figure out their partn partnerships they have a lot at risk. >> yeah. >> all right steve, thank you tim, thank you coming up, a fast food fight. burger king matching mcdonald's $5 value offering. which trchain is better set up win a price war? that's next.

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clinically proven to remove skin tags safely in as little as one treatment. welcome back burger king is rolling out a $5 value meal of its own next month before mcdonald's launches its version on june 25th sounds like the beginning of a price war. is it? kate rogers has that story kate >> kelly, you said it. there is another new value offering in time, this time from burger king. the company confirming to cnbc it'll be rolling out a value meal of its own for $5 after franchisees agreed to the promotion in april the meal will be offered ahead of mcdonald's $5 meal, which is

coming the end of june, and set to last a month. burger king's will last longer and have choices between sandwiches, fries and a drink. in a memo sent to u.s. franchisees of cnbc, quote, "regardless of their plans, we are moving full speed ahead with our own plans to launch our own $5 value meal before they do, and run it for several months versus their reported four-week window." they also wrote they're testing additional platforms alongside this due $5 duos and $5.99 crispy wraps were mentioned the promotion for mcdonald's lasts about a month from june 25th coca-cola kicked in funding for marketing to make that deal a bit more afppealing to franchisees. some were pushing for an investment from mcdonald's corporate to keep the platform on the menu for a longer period

of time, arkarguing without the investment, the 30% discounted meal wouldn't be sustainable for operators at current margins beyond the one-month option. >> do franchisees have a say on whether they'll offer it or what how do you do it >> yeah, so it definitely depends in terms of pricing. before a national value offering like this, burger king and mcdonald's, franchisees have toy agree to it. they have the ability to set their own prices if it's coming from the top-down we're offering a $5 value platform, the franchisees have to be on board they get to decide yes or no, we want to do this or not, but this is a highly competitive environment for consumers. everyone is vying to get people coming in, increase their traffic. yes, the value wars are heating up, and the franchisees are on board, at least for now. >> thank you, kate let's go to tim. i don't know what you prefer to eat.

>> i feel strongly about it, tyler. i'm a mcdonald's guy mcdonald's or burger king, you're coke or pepsi i'm a mcdonald's guy i was looking at the credit card bill, which is never a good thing. i noticed a $17 by the time you doordash happy meal. i'm looking forward to the $5 menu. >> are your toddlers doordashing? >> well, i don't know who is really doing this. i think i know, and i'm coming after ya but, clearly, what we've heard, and we heard this from restaurant brands, international parent company of burger king, we know the consumer is struggling we've heard this from mcdonald's, down 20% from the $300 high in trading now to a discount for 5 and 10 year this is getting interesting. mcdonald's, the one-month plan, historically, they've extended this that doesn't bode well for margins here i think you're going to get mcdonald's lower love it as a stock it. i've loved it as an investor, as a parent the only chicken my kid will

eat. >> if you had to choose between the stocks, you'd pick mcdonald's. >> i'd choose mcdonald's i i tthink it'll be lower 240, 245 is an interesting level, and the valuation is supported. >> thank you, tim. let's get to julia boorstin for a news update. tyler, the city of uvalde, texas, held a vigil today to mark two years since a gunman opened fire inside of robb elementary school, killing 19 students and 2 teachers. it is one of the deadliest school shootings in u.s. history. there will also be a vigil tonight to remember the victims. the two-year anniversary comes just days after families of 19 of the victims agreed to a $2 million settlement with the city an oklahoma-based group says three of its missionaries were ambushed by a gang in haiti and killed it comes after months of escalating gang violence in the country. secretary of state antony blinken has warned haiti is close to becoming a failed state. meanwhile, secretary blinken

will travel to eastern europe next week. concerns are mounting about russia's advances in ukraine potential russian interference in moldova and a controversial new law in georgia, which the u.s. believes undermines democracy and freedom of expression the law requires organizations that receive more than 20% of their funding from abroad to register as agents of foreign influence. tyler, back to you. >> thank you, julia. coming up, an economic double feature this summer's box office could be make or break for hollywood and the film industry, but might it be even more important for the malls and shopping centers that rely on the foot traffic of theaters we'll dive into all of that when "power lunch" returns. (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions,

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welcome back last summer, barbenheimer brought the summer box office over $4 billion for the first time since 2019. our next guest says we could see around a 20% drop in tickets year-over-year joining us now is senior media analyst at comscore. paul, good to have you here. last year,we've all been talking about all these different industries post pandemic finally, pre-pandemic levels

last year, last summer, it was for the box office was the celebration premature? >> that was an interesting summer you mentioned barbenheimer "barbie" and "oppenheimer" generated $2 billion in domestic box office according to our comscore numbers, and that helped power the summer of '23 to over $4 billion we hadn't seen that since the pre-pandemic era and this year will probably be just over $3 billion for the summer we got off to a bit of a slower start with this summer we didn't have a big lead-in film in april like last year "super marrio brothers. help is on the way with the release calendar some great films i think are going to bring people into the movie theater. >> we were talking about the table and struggling even to name a movie currently. >> a big hit. >> in theaters a big hit, tim.

>> yeah. >> something we all kind of -- i wonder, is this because of the decline in linear tv and traditional advertising? there's plenty of ways to be advertised on streaming and youtube. >> no question, streaming. look where netflix sits in the middle of this netflix allowed the most summer are releases and deliver it across -- it seems the adventure or comedic summer blockbusters are taking a backseat to action. it's taste, too. netflix needs this the least they're best positioned. disney, stock got destroyed on earnings a few weeks back. i think that was probably an overreaction the bottom line is the studio at different points has been the breadwinner. part of the flywheel that is essential to the entire structure, including the theme parks business it is a fascinating time by the way, you're sitting in the middle of a movie theater right now, appearing to people at home. >> not that i'm --

>> paul, what have been the underperformers this year, and what are you banking on as we turn to memorial day and beyond? >> i think a movie that really didn't get a chance to play for the long haul was "the fall guy. it kicked off this summer with $27.8 million. contrast that with a run from 2007 to 2019 where a marvel movie kicked off the summer movie season last year, "guardians of the galaxy: volume 3" opened to $118 million. when you have a movie like "guardians" opening a summer with $118 million and "fall guy" this year with barely $28 million, that definitely set the stage for a slower month of may, a slower lead up to memorial weekend. but, you know, "furi"furiosa," garfield movie." "a quiet place," "despicable me

4," "twisters" and "deadpool and wolverine. i don't know what the views on the trailers are, but it's in the millions that'll be $150 million to $170 million opening weekend in the u.s. and canada alone. that opens in late july. help the on the way. a different trajectory for this particular summer for movie theaters. >> "the gareth tefield movie," a. garfield, a biopic. >> i'd see that. >> killed tragically by, allegedly, a disgruntled office seeker. >> wow i was just trying to think back to, you know, the list you described, paul, and how many of those are iterative. what do people love from last summer "oppenheimer" and k"barbie. well, "barbie" wasn't highly original what gets people into theaters >> you can't always win with that people cry for the lack of originality, and when you do something more original, often those films fall flat.

it's really -- we're not making widgets here these are movies every weekend is different look, last year was magic. i mean, "barbie," "oppenheimer," "sound of freedom," $1.1 billion to the domestic box office in the summer we're not going to see that every year i think next summer will be bigger than this summer. it is a cyclical business. this is not an anomaly this is what happens in the business it's all product driven, though i loathe to call movies product. but it is. if movies aren't there, the strikes had an impact. "mission impossible" moved to 2025 ""deadpool" and wolverine" was supposed to kick off this summer movie season on may 3rd of this year. >> right. >> it threw things into disarray, but we'll see the year catch up a bit we're not getting to $9 billion for the year, but, still, solid movies out there

if people have a great experience in the theater, they'll want to go back. of course, there's a lot of options at home. there is nothing like the movie theater experience. >> the appapes, listen up. >> thank you. if theaters have less foot traffic, could it affect the ecosystem, namely malls? the space in general is lower for the week, but is more trouble looming and maybe tied to a subpar movie season hasam naji is the president of the largest real estate firm in the u.s. our guest, tim seymour, is with us, as well. of all the things that are important to mall owners and shopping center operators, which one is the most important? foot traffic generated by movies, which seems to be an incremental thing, the overall

health of the consumer, or the overall health of interest rates? >> first of all, thanks for having me back on the program. great to be with you it is all three factors you named. consumer strength has to be there. we're seeing record demand and retailer demand for brick and mortar retail in the last 20 years. we have not seen this much demand for leased space, expansion space, and renewals than we're seeing today by a variety of tenants that is because of -- >> let me interrupt you if i might. >> sure. >> i'm curious about that. is that demand in certain classes of malls more than in others boy, i see an awful lot of strip malls that look like they are about to go out. >> to your point, there are plenty of retail that's still hurting. >> yup. >> especially the lower end

retail, the older retail that has not benefitted from what is now considered the most important factor, behind the broader consumer strength, and that is experiential retail. food, drivers, and fun contrasted with 20 plus years of no new construction, large measurement, and diminution of a lot of retail. some of the retail with dark spaces you're referring to will be reused or retenanted. it'll take time. they're still paying out much of the pain is behind us because retail was ahead of the curve because of e-commerce and renovating and adjusting to a new economy. we're seeing the record demand with value retailers, for the lower-income consumer and the higher-income consumer and everything in between. movie theaters and other forms of entertainment are a major driver restaurant and bars are the most

important. their sales wayout outstrip grr steals, which is interesting post-pandemic, people have been eager to get out and experience different things, including movies, by the way somewhere between 20% to 30% below where we were pre-pandemic but it is coming back fairly strongly and steady. theaters are very hard to reuse, very expensive to recycle. owners are working with the tenants on this reinvention that we're seeing in the theater space as well as multiple other aspects of retail. >> tim, i'm glad paul mentioned the strike impact. i forgot we were in this massive strike last year. it has delayed the content to now 2025 maybe that's a hopeful note. if you are an investor, do you pick up the mall stock, so to speak, on the cheap if they are on the cheap, just because of the one unique phenomenon, or do you worry about the consumer more broadly >> i don't know how cheap they are. simon property, their numbers were fine. lease rate, they're 95.5, up 110

year-over-year i think mall's biggest problem are malls. ultimately, i still think there are headwinds there. some discretionary, kind of, you know, flags that are planted in terms of the foundation, i mean, restaurants and bars, great. they've had a tremendous run, but all we keep hearing is that there's pressure from the consumer i look at a simon property, near the top end of a one-year range, probably as blue chip as you get. there's no sign that cre, again, a year ago, we were talking fresh off of svb, et cetera. right now, that cre element of, especially the blue chip mall operators, is not a concern for investors. rates are up 50 this year and simon is up 4%. >> hessam, i'd like your thoughts on what may or may not be a trend you tell me. that is, the frontier of mall operators developing residential properties right adjacent to

those malls. i'm thinking, in particular, of garden state plaza in new jersey, which i believe is a westfield mall, if i'm right there is a plan they're going to turn that into a residential area so people can walk right in they'll certainly put in a whole foods grocery store. what about that? >>. >> that is a great example of the reuse of obsolete retail we're seeing the conversion to mixed use properties, conversion to residential, as you mentioned. even warehousing, you know, the last mile kind of concept. a lot of retail has great location but an outdated use of the real estate. we'reseeing that renovation happen within retail, you mentioned interest rates there has been clearly a significant shot because of what the fed has done in a short period of time, but retail, interestingly enough, had higher cap rates or ingoing yields. therefore, it was less vulnerable to the interest rate shock than, say, multi-family

properties with a low yield because of its favored status or industrial warehouses. those yields were in the 4%, 4.5% range, when interest rates were about the same, 3.5% to 4%. retail yields were around 6.5% to 7%. there was a lot more cushion to absorb what the fed had done as i mentioned before, because retail had gone through a significant revaluation and repricing, it is now the most favored asset class. by the way, it's the largest investment broker in the united states and the largest broker of retail properties, we're seeing both the tired, maybe a little older strip center you were referring to earlier in our discussion, as well as trophy malls and trophy lifestyle centers and power centers all seeing demand come back, from investors and tenants alike. >> thank you for your insights today. hessam nadji, thank you. coming up, start your engines. we'll get a live report from the site of the indy 500 when "power

lunch" returns

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jensen memorial day is a -- weekend is a massive ecosystem, travel, food, entertainment, naul fauks for the next few days. that's where my focus will be. one event that combines all of those into one is the legendary indianapolis 500 brian is live from the event, for a special edition tonight, of last call brian? >> hey, tyler, thank you listen, we're about two days already away from the running was indy 500 but there are many people here partying and spending money and two days away from the race. we did not come to the indianapolis motor speedway merely because it is one of the greatest single day sporting events in the world. although that is a darn good reason this is a massive money event. it is a massive contributor to the indiana economy. you have got hundreds of

thousands of people that will be at this track, an estimated 350,000 people on sunday, all having fun, spending some money, buying food, drinks, clothes, et cetera, and in fact, it will be more than a billion dollars all in this is also a big corporate event. all the sponsors on the cars, tyler, their ceos are here, you got pnc bank, you got verizon, shell, many, many others but the one name of course that sticks out above all of them is roger penske roger penske not only owns the indianapolis motor speedway, he is the chairman of penske automotive group, and oh, the most successful owner in car racing of all time, he's won 19 indy 500s. earlier today, we sat down with the man they call the captain, and we talked about the race, yes, but i also asked him about the macro economy, given that he is one of the world's biggest auto dealers, here's what he said >> well, i think, obviously, higher interest rates are impacting us in the car business it is affecting our leasing.

it affects our used car business but overall, the pent-up demand that we've had, because of supply chain issues during covid and what have you, has made a difference so we see volume up, margins are down and most of the public has had lower earnings this last quarter but we see yourself driving out here, lots of difference when you look at electrification today, i think that's making a big difference, lots of comments about it >> so, roger penske, tyler had, a lot more to add about the consumer economy, the car business, and of course, this race we will be joined tonight, we've got roger penske, the governor of indiana, the ceo of pnc, and the ceo of eli lilly, and probably some surprises. that's tonight >> that's a great lineup thank you so much. looking forward to watching that appreciate you with that interview today. summer is heating up so is our stock draft. carvana has surged, and we will

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with an immersive online education crafted just for traders. all so you can trade brilliantly. a quick check on the markets. the industrials are basically flat s&p 500 up two-thirds of a percent. nasdaq up a percent. and the russell is up .8%. >> we're not really at the midway point of the year, but not far off. >> i think there is relief around nvidia, we got confirmation the next two or three quarters, i think and plenty of people, as i mentioned earlier, with semiconductors, also weak, a lot of interest rate volatilities. there are fed concerns stronger economy on the services

side which is the part of the economy with a lot of inflation. and the biggest part of the u.s. economy. markets have had a big run. >> and just to put a point on it, today's action is quiet but significant to get us back in the green for the week to have the semis leadership, to shake off whatever happened with the nvidia trade yesterday nice tone to end the holiday weekend. should we check our stock draft? >> i think we have to. this is one of the great events in sports and marks all at once. >> all right and of course, mentalist, oz pearlman picked this one, leading the way. carvana, up 24% in a couple of weeks. and steady eddie, with apple and market fish, doing quite well last place tim, you are a trast picker? draft picker. >> oz, who plays the game, those

that are bottomed out or the highest delta, and nvidia is like that is not going to go up anymore and this is what happens. and the year before -- >> he pointed out, apple has come back since march 7th. >> don't count apple out >> you can count on everybody. the washington commanders, the team i grew up with, so sorry, folks. >> for more, stay tuned. >> great being you with. >> thank you. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. welcome to the "closing bell," i'm scott wapner here at the new york new hampshire, this make or break hour begins with the bull market, whether or not it is in intact and more gains, we will ask our experts over the final stretch including the wharton school jeremy siegel he will join us momentarily. in the meantime, take a look at the score card, with 60 minutes to go in regulation, we got a pretty decent bounceback for stocks today following some revisions to inflation expectations that sent yields reversing lower.oc