good afternoon and welcome to "power lunch." with kelly evans, i'm tyler mathison. stocks are lower. dow down by 350 points or thereabouts. s&p 500 by about half percent. and the nasdaq off by a quarter percent or thereabouts, 45 points. remember all the excitement when

the dow closed above 40,000 for the first time? that was may 17. it is down about 1500 points nearly 4% since then. >> and every s&p sector is lower right now. worst performers energy, utilities, materials and industrials. we do have retail winners. an bercrombie & fitch up. and dick's up 15%. chew i chewy rocketing as well. and the latest beige book was released. steve liege man eash liege man is digging into it. and we'll look at the 10 year yield. 4.618 after a weak auction last hour. and let's dive deeper into the market action. and do that, we're joined by

keith fitzgerald, fitzgerald group principal. good to have you with us. as you look at the selloff and rise in yields that we've been seeing, i guess the two are somehow connected. but what do you make of the selloff that has taken us down 1500 points or so from dow 40,000? >> honestly, not a whole heck of a lot. this is just deleveraging. classic. highly technical. there are a lot of people that missed out on the nvidia run along with a lot of other ai. so nastiness wouldn't be unexpected because they want too b to buy back in as lower prices. >> so you think this is a technical pullback i guess is how i would describe it. >> i do. i think it is very much a technical pullback. it is something that should be talked about a lot more, but it is not. and the average retail investor is left wondering what happened. but really this is the big guys just scrumming around in the middle of the field. stay on the sidelines. let it work itself out but buy

intelligently. continue to play offense. >> so you see this as basically a buying opportunity and you see it continuously and have to your credit as a buying opportunity in nvidia which you think can go much higher from here. >> you are very kind to remember that. thank you. yeah, we've been tracking that. >> kind of remember because you reminded me. >> we started tracking this -- >> all fair, man. >> everybody thought that we were bananas to say that it would go to a thousand and split. we have 60%, 70% margins. i think the company will track to 45, 50 on that side. so it is not hard to get to that $2,000 number. this is unprecedented in human history and demand is just scorching everything we know about how supply chain works. every company on the planet will adapt, adopt or die. they are the clear band leader here. >> you are right to take the

victory lap. at some point i will say why are you even -- just you must have -- go to a desert island somewhere, enjoy a margarita and call it a day. you don't have to come talk to us. but what i was going to say about sort of speaking of incredible moves, if uyou are right, it will be a $5 trillion or $6 trillion company. do you think that is plausible? >> yeah, i do. and i think not only plausible but likely. again the thing that is amazing to me, as we talk to investors all over the world, people continue to think about aia a technology but it is potentially the greatest technology of all-time. and it is not just nvidia. it is apple, microsoft. apple in particular, i think that we'll find out very shortly has been far more involved in ai than the public knows. and they are getting ready to unleash what i think will be another iphone moment. so it is not just nvidia, but we have to be careful here. >> that would be interesting because both neck and neck with

market cap if you think both will take a leg higher. all right. stay there, we'll get the details on the beige book from mr. steve liesman. >> thank you, kelly. the fed's beige book says the economy continues to expand with varying conditions across industries and districts. most districts reported slight or modest growth. so not really any barn burners being reported out there. retail spending was flat to slightly up. discretionary spending was set to be mostly lower with heightened price sensitivity among consumers. that is a theme throughout beige book. manufacturing flat to up. tight credit standards and higher interest rates were constraining lending growth. housing demand however rose modestly. overall the outlook was somewhat more pessimistic than the prior beige book. on employment, modest gains. four saw no change in

employment. but there was better labor variability and wage growth mostly moderate. several districts did see wage growth moderating and coming back to sort of normal or pre-pandemic levels. on prices consumers are pushing back against price increases. but profit margins were under pressure because input costs continued to increase. overall price growth was expected to continue at a modest base. so kind of a luke warm beige book here. not so great on growth. a little bit interesting that you have this price pressure on the input side but an inability of companies to raise prices on the consumer side. >> does this all add up -- we'll bring keith fitzgerald back into the discussion. but steve, let me begin with you, does the fact that the fed saw discretionary spending slowing price sensitivity increasing and moderate wage growth tell you anything about whereinflation should be expected to be in the reports

that will come up the next couple of weeks? >> i think overall what they are describing is the contours of the dynamic the fed is looking for. which is to slowdown in the economy that helps bring a slowdown in both wage growth and slowdown in price growth. and i think this dynamic here which i'm listening for, tyler, in the earnings reports, in our interviews with executives of consumers pushing back, then you have this margin issue and what companies do with their margins. to they eat a little bit on the margins and do they push back on the input costs. let's just say that the stone rolling downhill rather than uphill when it comes to prices, pushing back from the consumer to the producer, to the supplier of raw materials. i think this is along the contours of what the fed is looking for. >> so keith, we had a guest on yesterday who i guess framed the

fed's some you or the economy's issue this way. which will crack first, inflation or the economy. is that an oversimplified way to look at things? >> i don't think so. i think it is spot on. and i love how steve summarized it. the pressure that he is highlighting is at stake here. i think there is actually a third element to what your guest should have mentioned and that is that the fed has a fiscal problem. as long as it is looking in the rearview mirror, it can't be looking down the road. so it is not a matter of which cracks first, it is a question of how you play your cards. again, not all companies are the same. and they will be ableto protect margins differently. manufacturing not so much. tech, all kinds of protection. particularly if it is a must have product. >> well, thank you keith, appreciate it. steve liesman, thanks to you as well. and here is a look at the ten year treasury. let's get to rick santelli in

chicago. any reaction? >> biggest reaction is that we stopped going up after the seven year note auction which was not pretty. but it makes sense. when the last auctions completed, the market always takes a breath and especially when the auctions underscore all the fiscal insanity going on and the debt issues that are associated with all the issuance, yes, it focuses investors. that is not all gone at least for a couple weeks. rates are coming down. beige book slight growth. i don't think there was any surprise there. looking at the seven year, we peaked when the results came out and drifting lower since. if you look at the two day, today's yields higher than yield's and yield's yesterdays higher than the previous day. and that is due to the treasury curve. if you look at tens and we should because it is the long end, you want to pay attention to it. we will landlock the two year around 5%. if you look at the tens

basically four year high week on pace. bunds under 2.70%. and who wins on the comp? it would be the japanese government bond market. and even though it is only approaching 1.10, only a little over 1%, it is still the highest yield close in 134 years going back to the summer of 2011. pay attention here. i'm not saying that the japanese market is going to be the conductor that basically is sticking the baton to all world fixed income markets, but it definitely has been the weakest link with respect to their stimulative policies. and when they start to remove them more aggressively, there may be ripples on what is known as the carry trade which could be one of the biggest trades in financial history. tyler, back to you. >> all right. rick, thank you very much. coming up, an unheard of tactic to encourage shareholders

to vote. elon musk offering the chance to win a tesla factory tour to any shareholder who votes on his $56 billion pay package. doesn't care how, just wants you to vote. (♪♪) at enterprise mobility, we never stop looking for new mobility solutions. because sometimes the best road forward, is the one you didn't expect. (♪♪) ♪ ♪ welcome to the roots of our legacy.

where excellence, comfort, and electricity... are forever in bloom. welcome to beyond. the mercedes-maybach eqs suv. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab.

craig here pays too much for verizon wireless. so he sublet half his real estate office... [ bird squawks loudly ] to a pet shop.

meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up to 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities. welcome back. shares of american airlines are falling 15%. is this a problem for all airlines? let's bring in phil lebeau for more. >> it depends on your interpretation. right now investorses have generally taking that negativity and applying it to most of the airline stocks. i don't say all of the airline stocks because you take a look at the big four right now, take a look at united, it is higher

after affirming its guidance for the second quarter. the ceo talking today reiterating a lot of what he said previously in this quarter about what they are seeing in the market. so what is the story with american? late yesterday the company dropped a warning about what to expect for q2, lowering its expectations in terms of eps, revenue and margin. a couple issues here. one, softness in short haul domestic routes but also a far bigger issue in the eyes of many is the fact that they went to a more direct sales route away from the travel management companies, away from the agencies when it came to corporate sales. and guess what? they lost a lot of corporate sales. so as you look at shares of american over the last year, couple things have happen here. chief commercial officer has left the company. he will be leaving the company i should say. and they basically came out today. the ceo said we'll get back to blocking and tackling the basics of winning over customers. especially corporate customers. not enough for jeffries which

cut the stock to a hold. and as you take a look at passenger levels, the reason we're showing you this is this question keepsast week. they expect to cross over 3 million daily passengers sometime in the next month or two fending on where we are. maybe the fourth of july weekend. bottom line, the demand is still there. now, there may be some softness in terms of fares, but the demand is still there in terms of travel. >> let's pivot here a little bit while we have you to discuss -- let's call it the rather unusual situation taking place over at tesla. wouldn't be a day without a tesla check-in. as we covered yesterday, there has been pushback surrounding elop musk's $56 billion, yes, you heard me right, $56 billion

pay package, external proxy firms advising shareholders to vote against the package with the stock's poor performance this year. and now musk is working to sweeten the pot offering any investor who vote on the measure the chance to win a tesla gigafactory tour. the winner will be shown the factory by musk himself touring the cyber truck and model y assembly lines in texas. also receive a reserve seat at the shareholder meeting on engine 13. it doesn't mean they have to vote in favor of the measure. just show that they did in fact vote, quote, you should only submit proof that you voted, not how you voted. you don't have to vote for or against any proposals to be eligible for entry so says tesla. but the action is raising red flags and criticism here. i mean, as you were explaining yesterday, this $56 billion package was voted on with it tied to the meeting or making of

certain specific benchmarks, apparently all of which mr. musk has met. >> yeah. that was set back in 2018 by the board. and i remember at the time when we reported on that, tlir, everybody said the same thing. they were like look at the amount of money that elon musk could make. however, at the same time, almost everybody even those who were critical of it at the time said look at the benchmarks he has to hit. if he hits those benchmarks, shareholders of tesla will be richly rewarded. which you can argue, and i don't know if we have a chart, but go back to 2018. tesla shares are far higher now than they were back then. i'm sure they are. so the argument from the supporters of elon musk and this pay package is wait a second, we didn't just give him this money, he hit the metrics laid out there and if you were a tesla shareholder, you were richly rewarded. >> as i understand it, one of the obvious questions to ask is

how could tesla as a company afford a $56 billion pay package. but only have to pay it if he vests this, is that right? >> right. and that is the argument that he has made which is look, my skin in the game is my commitment to the company. and i'm not just asking for $56 billion. i'm committing to stay here and we will work to grow the company in the future. so i understand people who look at that pay package and will say no individual should be worth $56 billion. that is a separate discussion. the question here is he has delivered. and he is saying to shareholder, i've delivered in the past, i will deliver in the future. now, if you don't believe that he will deliver in the future or if you think this is an outrageous package, you can vote no. but bear in mind you run the risk that at smint some point elon musk will say you didn't like what i had before and i'll take the marbles and go home. >> so let me ask you let's say the shareholders vote yes, we

think he deserves this $56 billion. this is not insignificant matter of a delaware chance ry court judge who says no. >> and there is the second vote about whether or not to incorporate in the state of texas. so that would allow them to incorporate in the state of texas and then go forward. >> so the delaware judges, if they incorporate -- reincorporate in the state of texas, the delaware judge's ruling is abrabrogated. it wouldn't apply unless there is a separate action in texas which presumably there would not be. he could go ahead and collect the money. phil, i know you will be watching. endlessly fascinating. >> always is. and let's get a pow check on the energy space. overall it is the worst performing sector in the s&p leading the decline, conoco phillips down 4%.

marathon up 7%. both are tied to buyout news. more next. (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once and get closer to iconic landmarks, local life and cultural treasures. because when you experience europe on a viking longship, you'll spend less time getting there and more time being there. viking. exploring the world in comfort. ♪ ♪ [ inner monologue ] it was just a regular cybersecurity monday. that's me.

i'd seen this before... or, had i? ♪ ♪ what was this ai treachery? i needed some help. good thing i knew someone... or... some-thing. [ a.i. copilot ] glad you called, j. [ a.i. copilot ] it's time for an upgrade. awesome. ♪ ♪ [ inner monologue ] my path became clear. ♪ ♪ i knew what i had to do. because they never stop. no time to waste. this isn't sci-fi. this is precision ai. ♪ ♪ >> at university of maryland global campus, getting a bachelor's degree doesn't have to mean starting from scratch. here you can earn up to

90 undergraduate credits for relevant experience. what will your next success be?

welcome ack. a quick glance at the markets. down about 1500 points. down 1% on the dow which continues to underperform. s&p down half a percent. nasdaq outperforming as well. we're watching stocks under pressure from rising yields as well. and another big deal in the energy sector, this time conoco buying marathon. marathon up. pippa stevens is here to break it down. >> another deal building on the record m&a we've seen so far this year in the energy patch. conoco buying marathon with a 15% premium to yesterday's close. this is about -- marathon is about 10% of conoco. pickering energy partners says it is more on a bolt of transaction rather than truly transformative deal. but there are several ways in which it resembles the deals we've been seeing. it is accretive, additive and

also it is an all stock deal so it doesn't need to leverage and stretch the balance sheet for conoco. but there is one key difference. there is a multiphase-in deal. most marathon and conoco have operations in three areas that will increase their combined footprint. that is different than the other deals we've seen that was solely focused on thepermian basin. and so that might help the case in the sense that there are two different basins rather than one big in one basin. >> and the hess deal you were talking about yesterday was basically an acquisition of existing assets. what they want to avoid is new drilling in new areas. right? because they want to buy what is already there are they already know there is stuff in the ground they can pull out.

>> exactly. and these are more mature assets. so it is also not a deal that will lead to exponential growth. it is more keeping production at the same level. so it is more attractive as you noted to go with assets that are already producing and already proven rather than spending all that money to -- >> remind me where eagleford is. >> it is in texas. not part of the permian. it is a little south and east. >> and balkan is midwest? >> north dakota. >> need a man evep every time. >> i will bring one tomorrow. let's get to the cnbc news update. >> supreme court justice samuel alito refused to recuse himself today from any cases involving donald trump. the 2020 election or the january 6 insurrection. democrats demanded the recusal following a "new york times"s report claiming flags carried by january 6 rioters were flown

outside of his homes. alito said that his wife who he calls an independently minded private citizen made the decision to fly the sflags and he had no involvement. man sentenced to 30 years in federal prison for pledge an annening nancy pelosi's husband with a hammer is back in court today. opening statements in the trial are expected to begin today in san francisco. india issued a red alert for several parts of the country's northwest today as dellely delh reached 127 degrees. authorities are imposing water restrictions.ell delhi reached 127 degrees. authorities are imposing water restrictions.ll delhi reached 127 degrees. authorities are imposing water restrictions. delhi reached 127 degrees. authorities are imposing water restrictions. delhi reached 127 degrees. authorities are imposing water restrictions.delhi reached 127 degrees. authorities are imposing water restrictions. and conditions are expected to cool down tomorrow. tyler, back over to you. and argentina's controversial president meeting with major tech ceos here in the u.s.

companies like apple have been facing more scrutiny lately over the incorrect role they play in geopolitics. but what is argentina's president looking to get from these meetings? that is next.

[crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪

argentina's controversial libertarian president meeting with major tech ceos including elon musk, mark zuckerberg, tim cook. companies are in the spotlight over the indirect role they play in geopolitics. so what does the argentina president hope to accomplish? let's bring in our contributor michelle caruso-cabrera and also steve kovach. michelle, good to see you as always. what does he want to get out of these meetings? he has a polarized society. the pay so he peso cut 50%. what is his goal? >> he loves technology and wants

arrgentina to be the silicon valley of latin america or israel of latin america. wants to burnish his image. he is getting very, very impressive meeting which is many other foreign leaders would like to get. and he would also love to get more foreign direct investment into argentina because he desperately needs the dollars to be invested to address a lot of the issues that you are talking about and things that he is trying to change about argentina. >> steve, can he get what he wants? >> he might be able to. he also met with sam altman and they posted pictures on x. but let's look at what is going on with the ai world right now. we're seeing microsoft especially just make these huge investments all around the world, billions of dollars being invested in ai data centers. part of that is to protection against china, part of that is cultivating talent in these other areas. and part of that is it just -- ai applications in the cloud run

better and run faster when they are closer to where people are actually using them. so you can obviously see or imagine that this would be an error of investment. and i know we were talking before that apple has had problems selling iphones in arrest d argentina because of strict policies. so seems like the president wants to open up the economy more. so i can see that as kind of a low hanging fruit that they can achieve. >> and that is the phrase michelle i was going to ask you about. as we look at argentina, under his leadership, how much more opportunity is there to make changes whether the iphone policy or with tech broadly speaking? how much tech can he have? >> if he is successful, it will be dramatic. he has already been successful in combatting inflation. the central bank has been able to lower interest rates from 133% to now only 50%. but the situation with the iphone is emblematic with what

he is trying to accomplish. almost impossible to get an iphone. why? because back in 2009, a very leftish president passed a law that said all electronics must be manufactured in argentina. well, we all know where the iphone is manufactured and it won't be in argentina. you still want to buy the iphone? we'll put a 50% import tax on that phone. and if you still want to pay that even higher price, we'll make it very difficult for you to convert to dollars to buy it. it is a very, very closed economy. that is why it is suffering so much. all of those things are what he is trying to undo right now. he doesn't control the legislature so he is struggling with that, but does he control the central bank so that is why he is more successful with interest rates and inflation. >> how receptive would you think, michelle, his audiences with the tech execs will be? >> oh, if they can sell more stuff anywhere, they will be very, very happy about it. right? also he is a hardcore libertarian and there has always been a libertarian bent win

silicon valley. not all the ceos he is meeting with are libertarian, but he is a very interesting character in geopolitics. one of the most interesting. he ran on cutting government spending. no one in argentina had ever done that for 70 years and he won by equivalent of a land slide, by 12 points. politicians don't run on cutting spending. so it is very intriguing. and arrest again tina is an amazing place. it used to have the same gdp per capita of the united states.tin amazing place. it used to have the same gdp per capita of the united states. as to it so it is doable. >> and let go back to apple. part of the story there -- won't solve all the problems but part of the story is manufacturing and growing iphone sales again. selling the iphone again in china won't fix that. putting a plant down there in south america won't fix that. but we've seen apple over the

last couple years after we witnessed what happened this china throughout the pandemic, we've witnessed apple kind of make the moves in india and tim cook was just in southeast asia a couple months ago making these moves for small investments to kind of spread the wealth so to speak in order to not rely so much on china. >> is there another part of south america that they are currently using as that- >> brazil. they are pretty active in brazil. but still a smaller market for apple overall. >> you said, michelle, that he lie detector almost a landslide victory. where is his popularity right now given austerity measures that he has imposed including cutting of government subsidies with public transportation and education and other things? >> shocking there as good as when he came into office if not hire. you survey people and absolutely their economic situation has gotten worse and yet they are still optimistic about the future. keep this mind nearly 60% of the

population was get something kind of subsidy and yet 40% to 60% of the population depending on how you count it were living in poverty. you can do -- they have been spending so much money in argentina for decades and yet the population continued to suffer more and more and more. lost more and more purchasing power. so for them to suffer more, i'm not sure that -- they noticed it as much considering how bad things had gotten for so long. >> remarkable. >> fascinating story there. appreciate it. michelle caruso-cabrera, good to see you. steve voe compankovach, thank y. coming up, we'll look at the gains made and where the gaps also remain. and as we head to break, we're celebrating asian-american native hawaiian and island h heritage month. >> one of the most important lessons i learned in this journey is the importance of fully embracing myself.

we grow up watching corporate leaders, politician, hollywood movie characters that don't look and act like us. so when i finally embraced characteristics that i value, authenticity, kindness, consideration, being open and curious, that is when i really started shining as a business leader. 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! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow!

(♪♪) business can happen virtually anywhere. (♪♪) but there's nothing like being there. at national, you can skip the counter... and choose any car in the aisle... even manage your rental right from the app. so you can give some quality time to a quality cause. swing by to see one more customer... [audience cheering] and really get down to business. go national. go like a pro.

this month we're honoring asian-american and pacific islander heritage. and julia bourse corstin is loot their representation in hollywood. >> well, representation in film has increased. in 2022, nearly 20% of film actors were asian pacific islanders. this up from just 2% in 2002. but gaps still remain and that is an opportunity forhollywood to better serve api customers. that same mckenzie study found that asian-americans spend significantly less income on film and tchv and other groups. half would be willing to send

more money on film and tv if their experiences were more authentically represented. mckenzie estimates there could be up to $4 billion in incremental annual spending if they spent the same share of their income on film and tv as white consumers do. another study finds representation gaps in streaming content as well. the hollywood diversity report found in the top 100 streaming films last year, just 4% of the leads were asian actors. emmys and oscars are paying note. the movie everything everywhere all at once won last year. and beef also with best actor in her category. and media companies are paying note to opportunity in closing representation gaps. for example starz provides api

tv writers with mentorship, training and education to help train the next generation of show owners. >> so you point among other things to the dearth of relatable actors and performers in hollywood product as one reason why asian pacific people may not consume as much sort of western media i guess to overuse that word. but are there other reasons here that could be at apply? >> i think the key reason to really hone in here is that that question of representation. and not just any representation, but authentic presentation. and people want to see movies or tv shows or whether it is streaming or going to the movie theater where they see people like themselves represented in an authentic way. and that seems like the key way hollywood can generate more revenue from moviegoers. which is a big concern right now with the box office in decline and also make sure that people are engaged with streaming

services. so the audience and people who watch the content is diverse and the more sdrirs the content on the screen is, the more viewers will be able to connect with it. >> julia boorstin, thank you very much. still ahead we'll trade three key earnings movers in a fresh straight from the produce aisle three stock month. and the investing club meeting happening tomorrow at noon, join for members only access to the next big portfolio moves. he will reveal them tomorrow at 12 p.m. monthly meeting. we'll be right back.

[ inner monologue ] i needed some help. good thing i knew someone... ♪ ♪ or... some-thing. [ a.i. copilot ] glad you called, j.

[ a.i. copilot ] it's time for an upgrade. awesome. ♪ ♪ [ inner monologue ] i knew what i had to do. because they never stop. no time to waste. this isn't sci-fi. this is precision ai. ♪ ♪

time for today's three stock lunch. we'll look at three stocks making big moves on earnings over the last day or so. here with our trades is will mcgoff, director of investments with prime capital. and first up, let's look at dick's sporting goods.

the stock way up today. raising its full year outlook. retailer says shoppers are spending more on sneakers, apparel, athletic gear. your trade on dick's. >> thanks for having me. dick's is impressive beat. margins up, guidance up so of course the stock will be up. they do a great job of balancing national and local brands. i travel a lot for work and go into dick's and they have all the local and pro teams. and they value brands. you can get higher end and discount goods too. so we would have a buy. on top of that, nike's exstratec decision to deemphasize the consumer directly benefits dick's. and add on the summer rockefeller centers, you have good storm for dick's to move higher. >> interesting the olympics coming into play.

>> and impressive given how much that stock had run up during covid. let's move along to cava group. they did top estimates on the top and bottom line and shares are turned around. up more than 6%. earlier under pressure. so what is your trade? >> another buy here. you've got a couple fun ones today for me. when i say cava, i was excited to see the small to mid cap market. it has sucked a lot of premium out of the public markets and this is a pretty good quality group that will grow. when the ipo last summer, they said they had plans for 1,000 stores. they have 338 currently and they will add 50. they are about 10% of the size of chipotle. and you can do the math there. it will go higher and it will be a smaller mid cap name stock that you can participate in in a public market. which makes this an enticing buy to me as well. >> very interesting. my son who is my tell tale on

all these things, cava is right next to the sdik's adick's at t are center he goes to and he goes to both. he does not consume chewy, but buyback plans nearly 30% today. best day since it went public five years ago, chewy, chewy, chewy. >> yeah, this is probably the toughest of the three that you all gave me. it's technically i like it, it's almost falling knife territory after getting crushed in 2022 and then 2023 was down even more. it's down year-to-date. it's got a little bit of room to run i think higher, so i would cautiously be a buyer here. it's really on the back on the trend of humanification of our pets. a lot of people still think the dog should be in the dog house out back. there's another cohort of folks that are feeding their animals organic food and letting them

sleep inside, so chewy is definitely poised to benefit from that. h they've got an auto ship service to make it easy to get your pet goods. they send flowers and cards to pet owners who have recently lost pets, which i think isgood to their consumer loyalty. other than that it's demographic trends at play. people are having kids later in life, who's filling that void? pets. we have a retired baby boomer population, the pet trend is here to stay. this one is dangerous, though, because it's down so much, so you have to listen to the market there. we have amazon as a huge competitor, but amazon could also be a potential suitor for getting into the more in depth into the pet food game. we'll have to kind of watch and see there. a watchful eye on it for sure.

>> the humanification, but the stock has been struggling for some time. so maybe like you said, trade cautiously. will, we appreciate it today. thanks for joining us for all these trades. >> thanks for having me. >> you can always hear us on our podcast, follow and listen to "power lunch" wherever you go. we'll be right back with more.

(grandpa vo) i'm the richest guy in the world. hi baby! (woman 1 vo) i have inherited the best traditions. (woman 2 vo) i have a great boss... it's me. (man 1 vo) i have people, people i can count on. (man 2 vo) i have time to give (grandma vo) and a million stories to share. (grandpa vo) if that's not rich, i don't know what is. (vo) the key to being rich is knowing what counts.

>> no application fee if you apply by may 31 at university of maryland global campus, offering online and hybrid courses and lifetime career services. learn about our more than 125 degrees and certificates at umgc.edu. when you own a small business every second counts. save time marketing with constant contact. with email, sms and social posts all in one place. so you still have time

to make someone's day. start today at constantcontact.com. welcome back. markets are under pressure with higher yields today. the dow is the worst performer, down 1%, about 400 points a moment ago. the nasdaq down less than half a percent. let's move on to mcdonald's, which is defending itself after getting bad press online over its prices. kate rogers is here with this story. last we heard about mcdonald's, kate, they were introducing a low priced value meal, super value. >> upcoming $5 value bundle, that's right, tyler, and we all know there's been a lot of talk

and focus on both inflation and value in the fast food space in recent weeks. now mcdonald's u.s. president j joe ere linger speaking out in an open letter. he said the company has seen viral social posts and poorly sourced reports that it has raised prices significantly beyond inflationary rates, which he says is inaccurate. erlinger says i can tell you it frustrates me and worries me when i hear about an $18 big mac meal being sold at one location in the u.s. more worrying is when people believe this is the rule and not the exception, or when folks start to suggest that the prices of a big mac have risen 100% since 2019, which he says is not true. in the same letter, he did acknowledge that higher costs and growing wages have caused mcdonald's menu prices to rise in 2019 a big mac cost 4.29.

in 2019, an egg mcmuffin cost 3.49. that's now $4.29 on average. that's a 23% increase and 2019, a ten-piece mcnugget meal averaged 7.19. that's now 9.19. these increases are on par with rates. the fact that mcdonald's is addressing it at all, speaks to the narrative out there that fast food has gotten really expensive. it's rare to kind of see an executive come out and say this is not true. these are the facts. this is how much costs have actually gone up. here's why. >> $9.19 for a ten-piece nugget meal. >> was there or was there not an $18 big mac meal. this is the question for the jury, ladies and gentlemen. i hope i'm not on trial here, but my recommendation is that this was at onelocation as erlinger mentioned. i believe the new york post had it. i want to say it was in connecticut. it was at a rest stop location. it was one location. reminder, franchisees do have the ability to set their own

prices. there are different wage factors, supply chain factors that go into some of these costs. now this $5 value platform will be offered at all locations because the franchisees agreed to it. that's going to run for a month, and burger king has its own competing $5 meal as well. >> are they happy about this $5 deal? they're not going to be able to make money off it. >> it's a month-long promotion. i did report that an independent advocacy group of mcdonald's franchisees was pushing for corporate to pick in once the one-month time line was up to keep this on the menu for longer. they do argue in order for this to be sustainable and affordable for customers, it needs to be affordable for them as well. >> thank you very much, thanks for giving me another reason to stay off the merit parkway. >> could be just as bad on the garden state. >> just a few moments left in the program, though there is a chick-fil-a at the rest stop near my house. >> that's worth the money. >> several more stories, the cleveland fed announcing that

goldman sachs executive beth hammock will take over asreplaia mester. she has been at the helm for a decade. hammack will be in her first fomc meeting in september, where she'll be a voting member. she's be replacing mester, who's known as a bit of a hawk. >> this new one is a bond market specialist. in september she will be in the meeting with a vote. i think financial markets will feel like, okay, there's someone here mowho understands. >> who's a bond person. >> yes. the world speaking of which, has reached $315 trillion of debt officially according to a new report from iif, the biggest, fastest, most wide ranging rise in debt of the global economy since world war ii. two-thirds of it coming from mature economies like the u.s. and japan. they note the debt to gdp ratio for mature economies has been falling overall, but the fact that yields are now backing up will have people a bit nervous.

>> absolutely. do we have time for one more? i guess we don't, but we were going to tell you that weekly mortgage demand has been falling. maybe we'll get to that tomorrow. now you know something you didn't know five seconds ago. >> if you go to chipotle, $4.80, you can get a kids meal. with the chips and the drink, it's like that's what makes mcdonald's under pressure right now. >> i'm leaving right now. thanks for watching "power lunch." >> "closing bell" starts right now. i'm scot wapner live from post 9 here at the new york stock exchange. this make or break hour begins with rising rate fears and whether this record setting rally is about to be derailed again. we're going to ask our experts over this final stretch that very question, including super investor josh friedman who joins us in just a bit. your score card with 60 minutes to go in regulation, yields backing up. that continues to be the story teed today. awfully close to 5%, the