really undervalued, poised to do better when interest rates come down. >> jpmorgan, best of breed under $200. put it away and hold it. >> apple, still down 5% from its highs. wwc right around the corner. >> josh? >> staying long cornyn. >> thanks, everybody. "the exchange" is now. >> thank you, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead on a busy thursday. shares of salesforce are sinking following the company's first revenue miss since 2006. almost 20 years ago. are these just ai growing pains or is ai killing software as a service? our analyst remains bullish and is here to make his case. pending home sales dropping to a four-year low. it's not all bad news. there's two names that could benefit in the housing shortage. and three more names on deck to report. it's been a busy week for

earnings. now we turn our attention to this one and our guest says this is a phoenix rising from the ashes, and she's a buyer. we'll tell you ahead in earnings exchange. before that, let's get over to dom chu. how are the markets looking? >> they're moving. a lot of observers might know the s&p and the dow for a good portion of the day did not move at all through this. but the dow right now, down about 2/3 of 1%, down 255 points, 38,186. the broader s&p 500 is at 5256, down about 0.2 of 1%. at the highs, we were down about 25points. so tilting towards the upper end. the nasdaq down one half of 1%, to 16,846. so that is currenty the state of play for the major indexes. it's been a retail heavy day of earnings.

bad news first. shares of department store operator kohl's are getting crushed, down about 23% right now. it delivered a surprise quarterly loss due to weaker um footwear and lowering the annual forecast. on the upside, there's footlocker, up about 18 or so percent after the company reported better than expected earnings, because the sportswear and athletic apparel retailer reaffirmed full-year guidance, citing progress on its turn around plan and the upcoming summer and back-to-school shopping seasons, up big. down to the downside, dollar general has been up and down, down about 5% or so. the retailer give disappointing earnings guidance for the current quarter, though it follows a solid beat last quarter. it's down 5%. and we'll end on good news, which is best buy, higher today up by 12.5%. earnings beat, outweighing a slight miss on revenues for the electronics retailer that said

macro factors created a challenging sales environment. and by the way, if you are talking about best buy, you have to talk about the commentary and the ceo, she's going to be on "mad money" later on tonight. so keep an eye on that. back over to you. >> impressive job they have done. they have those dyson hair dryers. they have everything. thanks, dominic. consumers are still spending but selectively, reflected in new data showing the economy broadly grew just 1.3% in the first quarter, a slower pace than originally thought and the lowest level since the second quarter of 2022. jobless claims ticked up to 219,000 last week. so how resilient is the economy? let's ask david, chief market strategist, with steve liesman. help us big through some of these confusing data points. one of the most confusing is the

bifurcation with consumers say they're feeling and what they're doing with their money. >> we went back, we just did -- how do consumers spend during recession versus expense. if you look at the data, the spending right now looks a lot more like an expansion than it does a contraction. you see how low it can go. take a look also, for example, at credit and how people's use of credit a lot more like an expansion than a contraction. cap ex, businesses are spending a lot more like an expansion, rather than a contraction. we have another screen that shows you what happens to capital spending. people can say they think it's recession, but they're not acting like it. one thing that matters for politics, the other matters for politics. i'm not seeing those down beat

views playing a role. people are changing how they navigate their way through these high prices. substituting for other products, perhaps trading down. but when it comes to the inflation adjusted amount of spending out there, it's not a whole lot different from a regular expansion, a touch softer. >> dave, yesterday we were talking to an analyst from bank of america who noted the unemployment rate is breaking out to the upside. if we had that kind of development in the back half, a, would that surprise you? b, how could concerning would that be? i know it's way out of consensus, but why i thought it would be interesting to talk about it. >> yeah, i think it's certainly a scenario you could paint. i think ton employment rate has been pretty steady. we haven't seen much deterioration. the claims data still looks solid. there's nothing to get concerned about in terms of an abrupt move

in the labor market. but a small grind seems like the fed's forecast seems tlik street's forecast, probably consistent with a, you know, maybe small rally in the ten-year, sort of maybe back to 4.25. but to get to 3.25, you're talking a catastrophe, 100 basis points plus. you've got to have minus 200s, minus 300s, that kind of major shock to the system. it's always possible. but it doesn't look like it's coming from the demand side. >> steve? >> i was going to say, david raises an interesting point. slower growth is what we had wanted for soft landing. so, you don't want to get to the place you were trying to get to and then complain that you're there, if you know what i'm saying. it's like we were looking for these softer growth numbers, looking for some payroll -- some decline in payroll growth. one of the big, i think, threats

out there is, does the fed recognize when it achieves the goal it was after? and that's my biggest concern, is that we get to where the fed wanted to get to the soft landing. the fed doesn't recognize it, and it becomes a harder landing. >> so not to totally pivot and do the other what if, but this is the other what if. dave, we go back to the other flipside of the coin and say, you look at the easing in financial markets, which andre was saying credit's almost like we had a rate cut. does the fed lean hawkishly into that when we think things are looking mixed out there, are they going to do what kashkari and others have been hinting they should do, and start leaving more of an option on the table to hiking rates instead of cutting them? >> i think they told you, kelly, what they want to do, which is for them, staying higher for longer is the equivalent of a

fi hike. it sounds exciting. i know michelle bowen talked about it and ckashkari talked about it. we've had 525 basis points of breakouts. it's a lot. adding another 25 is splitting hairs. we had, in their mind, restrictive policy. i think we have less restrictive policy because the balance sheet is still so big, but we'll figure out through time whether that view is correct. i think there's plenty of reason to believe that there's some slowing in demand, it's kind of baseline scenario that you pointed out of maybe the unemployment rate creeping up a little bit, the fed gets to cut one or two times this year, that's baked in. that's kind of the story. the question is how do you get a big deviation from that? that could be the scenario you talk about, which is a massive collapse in the unemployment

picture or major shock on the inflation side. and neither of them seem very plausible. >> the third one, and i love checking in with you, because dave says, go to the beach, stop worrying. the fed's got -- everything is going to be fine, and i don't know if it's my upbringing. so i'm going to give you the third one. we look at the auction results this week and the deficit situation and say okay, how does this all factor into the developing, you know, picture? are we going to look back, just your point of maybe conditions are too easy, we're going to realize it five years from now. five years from now, will we have a bad economy, and high interest rates, which would be the worst of all outcomes? >> you know, i'm not going to get excited yet about some fiscal catastrophe. it's been on everybody's radar for decades. we talk about it all the time. the interest expense has gone up. the interest expense will continue to go up. if the sort of story evolves the way we highlight as the baseline

scenario, rates are a little lower, the fed's interest expense coming down. remember, they're stopping qt. they just tapered it. the market rallied and took us to new highs nine days in a row after that wednesday meeting, the market went up after they tapered qt, and they still could taper a bit more another $40 or $50 billion they could take off the table, which i think they will. and that's money that will go direct shup into auctions, money the fed will reinvest into this treasury market, every month. every month there's maturities and keep the balance sheet the same. that should ease some of that concern, but, again, it sells, it's a great story, a lot of doom and gloom, the dollar is going to get crushed, rates will go higher. it's just a record of people that want to hate on the u.s. situation, when things are pretty good. >> doom and gloom, you have

gotten nowhere unless you owned gold for 20 years. but steve, bring this together for us. even as dave is worry, i'm hearing him say the fed has the treasury back. so i don't know, give us the last word. >> you know, i think that the change to qt was a little bit curious. it was certainly more than had been expected. it was not really consummate with a fed that wanted to seriously bring down its balance sheet. so i think that was taken correctly by the market as something of a dovish signal, even while powell insisted it was not. i am interested this morning, though, in john williams, who gave a speech, i guess it broke this afternoon. he took a rather dovish take on the inflation in the past three months, where he said it did not represent an toeend to the downd progress.

he attributed a lot to the second half of last year showing unusually quick declines in infl inflation. in any event, while people are talking a lot about neil kashkari, which i don't get, because i don't think he was that hawkish to begin with, but i think it's rude to think about fed officials and how they talked about the last three months of inflation, and their willingness to let that go, and accept some of the newer data that may be coming in that could be more on the dovish side. which is to say, put on your seat belt. tomorrow morning will be interesting with the pce. next week the ecb might be cutting rates, and then the jobs report. it's going to be a great ride. >> all right, gentlemen, thank you very much. appreciate your time today. our steve steve and david zerbos. the market is typically quiet over the summer, and my next guest expects a pullback but also some opportunity.

david, i don't know if you just heard that conversation, kind of want to talk to us about -- what do you do investment wise, put it all in the s&p and hope for the best that the fed's got our back? >> oh, no, you can do a lot better than that, kelly, for sure. there's a lot of opportunity out there, and i think you have to realize that the fed is out there, they're looking at john williams and what he said about inflation being too high. it is a concern, but i think they're going to let it ride for a little bit. being a stock picker in this market is really key, and managing your risks is going to be essential, because there's going to be sop chopiness, like you talked about the pce and inflation numbers coming out in the next day and week. we'll have some opportunity where the market is going to provide, and when you're ready, it's time to pounce on some of those names. >> you're a little more in the kelly nervous camp. the economic surprises have turned lower at the same time inflation is reaccelerating. what kind of prices do you pick? >> i think you have to be aware

of high earnings and high quality and look for some good opportunity in a variety of different industries. i think you need to be diversified there. make sure in some -- qualcomm has high quality earnings. if you look at their trend and volatility, this risk management momentum is doing very well for qualcomm, and revisions are up 5% since march 31st. this is a really good stock, especially if there's any pullback. it's play a little bit in ai, as well. so that's a good one, i think. there's some other positions out there. if you are looking for global income, ing, they had a very strong results, they have free -- a lot of income growth that was more than expected. and let's talk about this, a 9% dividend yield. that's a pretty good stock for a choppy market. and if you are a small-cap player, asc.

this is a shipping company. they have very, very strong financials, very low debt, high ratings. i think the valuation is still very cheap here. and for a small-cap company, it carries a 5% yield. so there's some really good opportunities out there. >> you're brave, going for a shipping name right now. you have ing with 9% dividend. that's usually here comes nervous nellie again, i don't know. is that sustainable? >> well, it is, but i would say this, you need something to be able to look for the chopiness ahead. this is a really well-run company and they have excess capital positions. so you're going to wait out this choppy summer, maybe sell and go away type of thing. maybe there's a few names that you want to hold. there will be some other ones that carry more risk that i would look to avoid. >> tell me top level where you track the mag seven versus the economic surprise index, what are you looking at there and inform your stock selection process and tell you about the

market? >> well, i think there's a couple different things that we look at. one is concentration. we know that concentration there is going to go one or the other way. it's going to spread to the other 493, right? or they're going to peter out and we're going to have a more sustained down market. so we're cautiously -- i would use these words, we're cautiously optimistic that it will spread. but it's going to take a little bit of time and we've been waiting 18 months now. so i think we look at these economic surprises to say, is it spreading? can we trust the rest of the index? the reality is right now not as much as we would like. so if you're in the magnificent seven, stay there. >> i appreciate that. that's a little bit of a different take. finally, two names you want to avoid, and one is a deep tease to next hour. lulu lemon, athleisure is over. target is also a name you're avoiding. are there retail stocks you

would buy here, or no? >> let's face it, the retail numbers this morning, you look at kohl's. it's had a terrible morning, and that's unfortunate for those shareholders. but the whole space isn't doing as well as we would like. so there are some names i would avoid. lulu lemon has terrible risk management. it has negative industry trends, and i think they've had some market saturation. you're going to talk about that in the next hour, that's a perfect lead-in. fewer new stores, their expansion slowed down. so i would like elsewhere. and target seems to be struggling with their identity and focus and trying to get back on track. even their individual transaction amounts have declined. so those who are shopping are spending less. until the issues are addressed, i would like other areas. maybe a name is -- this is a company that is widespread, but i think it's a stronger play

there for individuals who they were looking to ride out the summer. >> which name was it, did you say nike? >> i said nike. >> david, thank you. am abercrombie has had such a runup. david, thank you for joining us today. shares of bank of america are on the move. leslie picker has the market flash. >> hey, kell. this comes from some comments made by brian moynihan, the ceo of bank of america. speaking at a conference today, you could see a visible tick down in the stock price as he was giving the comments around 11:30. kdw sums up the culprit of that tickdown of the guy lidance tha moynihan gave. it will be 1% less to consensus in the second quarter. markets revenue, moynihan said is expected to be at low single

digits, which kdw attributes to a 1% miss. and banking revenue up 10% to 15%, which is another miss to consensus. if you pull this together, that indicates that guidance is about a four-cent miss to consensus in 2 q 2024. that's why the stock took a dip. it's recovered a little bit, but down about 1% in today's trading. kell? >> interesting. leslie, thank you for bringing that to us. coming up, the disaster dejour salesforce, now down 20% after their first revenue miss in 18 years. we'll tell you what went wrong, what the ceo is saying about it, and we'll talk to one analyst who says the stock could rally more than 50%, despite having its worst day in two decades and sending a mess an about broader tech and software. and today's pending home sales

suggest the affordability -- we will reveal them ahead on "the exchange." don't go anywhere. doors take us places. so you bought a place. to new adventures. -oh. mwah. -planned... -and unplanned. -surprise! -they lead to goals. -for you, mama. and connect us to family. i didn't get the part. your dedicated fidelity advisor can help you open those doors. but i did get waiter number 2. because they know you. they can help you create a comprehensive plan for your full financial picture and personalized money management with the right balance of risk and reward. doors were meant to be opened.

a slow network is no network for business. with the right balance of risk and reward. that's why more choose comcast business. and now, we're introducing ultimate speed for business —our fastest plans yet. we're up to 12 times faster than verizon, at&t, and t-mobile. and existing customers could even get up to triple the speeds... at no additional cost. it's ultimate speed for ultimate business. don't miss out on our fastest speed plans yet! switch to comcast business and get started for $49.99 a month. plus, ask how to get up to an $800 prepaid card. call today! welcome back to "the exchange." shares of salesforce are down almost 21% now, after the company cut support revenue. they also gave a down beat

forecast for the current quarter. last night on "mad money," the ceo remained optimistic, especially about the company's ai products. >> the most important thing remains the customer success. how are we going to make these customers totally transform themselves, more profitable using our ai technology. >> my next guest is excited, seeing some challenges with this ai adoption. patrick is director of technology research,maintaining his buy rating on salesforce. patrick, why is this just a bump in the road? >> kelly, first of all, thank you for having me on. look, obviously it's hugely disappointing, and the first time that salesforce has missed revenue in 19 years. so, everyone expects this company to execute in a steady manner, and they didn't do that in q1 and they're being punished for it. >> it reminds me of other stock blowouts where you have one big

quarter that tells you we're at aninflection point and it often gets worse before it gets better. why aren't they like that? >> it's not going to get fixed tomorrow. you have to wait until august when they report to show that they can turn it around. fundamentally with salesforce, i think there's three things. first of all,their ai pilots, their gen ai products are just coming to market for now. the first two of them only became available in april at the very end of the quarter and they have three more come thing year. so i think you want to let those products come to market and see what they do. secondly, they have a massive amount of customer data. it's crazy. they have 20 years of customer data, and data is what fuels ai. that's what makes it work. and thirdly, i don't think we should count this company out.

they've weathered a lot of storms. i wouldn't bet against them in terms of figure thing out. >> when they were under pressure a few years ago, he slashed expenses. he knows how to pivot, and talked about that last night. but look, salesforce was one of the best stocks to own for the entire period, literally the last 20 years. it feels like the most perfect name of this entire transformation in how we do business. now we know we're at the dawn of another period, and it feels like investors are saying it's time to be elsewhere. this stock, make they can pivot and keep up, but it's time to be elsewhere. >> so for sure people are feeling that way today. by the way, in terms of where the "elsewhere" is, it's just ironic. look at c3 ai today, which is the first erm company, which was on premise and they got bought

by oracle that. business is entirely enterprise ai, and they are going through the roof, the stock is up 15%, 16%. another thing to look at today would be snowflake, where they had a bad quarter, then bounced back and they have a new ceo who knows ai absolutely cold from his time at google, and they're having their user conference here in san francisco next week. so salesforce will figure it out. it is relative valuation right now. it's like 16 times free cash flow, the cheapest it's ever been. but yeah, it's going to take a couple months, at least. >> but even when you said hints at, mark bennyhof, this is his company, but does it need someone else to lead it through the ai transformation period? for someone like me that doesn't use salesforce every day, explain why the product experience might be changing for a user today with the rise of gen ai? what can i now do on a different

piece of sort ware that makes me engage or rely on salesforce less than i previously would have? >> well, so, you're a sales person and the sales co-pilot will write your email for you to your prospect. you are a customer support person, and usually you have to go through all your different policy manuals to find the answer to the question. instead, the co-pilot will write a quick three sentence response to what your customer's question, is and even better, when you get off the phone at the end of the conversation, it summarizes the conversation for you and says, is this okay? you edit if you need to, otherwise just click okay. so there's huge benefits for salesforce's customers, but they have to get those solutions into their customer's hands. >> so we should view salesforce's main competitors like microsoft, openai, to some ex-petent google.

those are tough competitors. >> at the very bottom, you have nvidia. above that, you have the foundation layer, so the snowflakes. above that, you have the models. so openai, and sitting on top are the applications. the applications are where the customers really get the benefit. yeah, they're competing against microsoft's applications, competing against all the leading applications companies. >> so they're going to need the best tall aent and products and need deep pockets, which you say is something they can do. patrick, thank you for joining us. we appreciate it. >> thanks for having me. coming up, american airlines drifting lower again after posting its worst day since the pandemic. still ahead, we'll look at the state of travel, the names best positioned and one cohorth'st at propping up the entire industry. "the exchange" will be right back. he needs to protect it.

this father's day, give him the gift of weathertech. from laser-measured floorliners and cargo liner to keep his interior pristine. to seat protector to guard against stains and sunshade to block harmful uv rays. the cupfone perfectly secures his phone while driving. order these american made products or a gift card at wt.com. happy father's day! >> earning a degree doesn't have to mean starting from scratch. at university of maryland global campus, it means building your next success on the foundation of life experience. umgc values the successes you've already achieved. that's why you can earn up to 90 credits from prior learning and life and job experience toward our bachelor's

degree programs. no application fee if you apply by may 31 at umgc.edu.

welcome back to "the exchange," everybody. i'm tyler mathisen with your news update at this hour.

a courtroom win for former president trump today. a new york appeals court ruled he can sue his niece, mary trump, forgiving information to "the new york times" for its 2018 probe into his finances. the court ruled there was substantial legal basis for trump to claim she violated confidentiality provisions of a 2001 settlement over the estate of trump's father, fred. mary trump has yet to comment. once a bitter rival, now a fund riser. advisers to florida governor ron desantis say he hopes to raise tw at least $10 million for the trump campaign. he says the money will be used to buy media in key swing states. the new women's basketball league unrivaled has secured big investors. the list includes former espn president john skipper, nba all-star caramel anthony, and a

firm led by u.s. women's national soccer team captain alex morgan. the league, which plans to launch in january, will give athletes equity and promises to b pay the highest women's salaries in women's sports. >> a competitor wants to cannibalize the wnba? >> i would assume it would. i'm guessing, i don't know. >> tyler, thanks. coming up, housing affordability is at multidecade lows, but home builder stocks are a mixed bag this year. we'll speak with jpmorgan's head of rl ta.eaeste back after this. you need an . 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! hey you, with the small business... ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall.

welcome back to "the exchange." the latest read on housing shows buyers are staying on the sidelines amid these high rates. let's get to diana olick with these numbers. >> it was a huge miss on pending home sales, they dropped 7.7%. this count is based oncontracts signed during the month. so at that month's mortgage rates. that would be your culprit. the average rate on the 30-year

fix ended at 6.9% and then just took off, hitting 7.5% by the end of april. with prices still coming and supply very low, leading to increased competition, that jump in rates was a huge factor. sales were down in every region of the country, but fell hardest in the midwest and west, which is interesting, because the midwest has some of the most affordable markets and the west some of the most expensive markets. mortgage rates are rising again now. another report out said the share of sellers doing price cuts hit 6.4%, and that is the highest level since 2022. the immemedian asking price als dropped for the first time in six months. >> so a little glimmer of hope there, maybe. >> maybe. >> diana, thank you very much. owning a home has turned from an american dream to a pipe dream for many, as housing affordability has hit multidecade lows. according to data, the median home sales price was $420,000

last month. a monthly payment is $1,000 more than it was three years ago. my next guest says there was some stocks that can benefit from these housing challenges. here with the names and where else she's seeing opportunity. all global listed real assets? >> yes. listed real estate and listed infrastructure. >> infrastructure. this is the place people want to be is real assets. >> absolutely, yeah. what is is the broad argument for owning reals a s aassets? >> when you think about the rational to include real assets in a portfolio, it would be the diversification and the inflation protection it has provided. >> housing has been an odd one, because the market has been frozen, but as a result the home builder stocks have been super

hot. that's gone on longer than many expected. where in that universe are you thinking there's the most opportunity right now? >> so, i primarily focus on the listed real estate universe, including reetits, primarily rental housing. when you think about the affordability crisis playing out in the u.s. today, it is benefiting the rental market. so you said that it was, you know, moving from the american dream to a pipe dream. that does provide opportunity for the rental landlords to be able to fill this affordability gap that so many people are experiencing. >> what are the publicly traded rental plays? >> from a sector perspective, you can invest in traditional multifamily, you can invest in single family rentals, or invest in manufactured housing. >> do you like all of them? >> the most attractive right now, taking everything into consideration, is going to be the single family rental market,

and then some pockets of the traditional multifamily universe. >> single family names we should know about is i think of american homes and those stocks over the years. >> a name like amh, they really do have a differentiated operating platform. they run about 60,000 homes. they're also a developer of single family homes. so they were one of the first institutional players out there to develop single family homes exclusively for rent. and that is providing them with multiyear runway of future growth that they're going to be able to benefit from, and also really kind of helping this affordability crisis. when you think about renting an amh home, it's actually 25% more expensive to own a home in the amh markets. >> so the only obviously problem here would be if we start to see rents slow, which is what everyone is cheering for from an

inflation point of view, because it's been one of the biggest contributors there. are you seeing signs of rents coming down? >> we're not in the sfr space. you have seen that play out in the multifamily space, especially in some of the sun belt markets where you are seeing elevated new supply coming into the markets. >> in florida, places like that. and you do have a name, avolon bay that you like. >> avolon bay is the traditional multifamily owner/operator developer. they are traditionally more in the coastal, urban cities and suburbs. so when you think about the avolon bay markets, you mentioned earlier, average home price in the u.s. today, $420,000. in avolon bay markets, the average price is over $800,000. so the affordability of those markets is significantly lower than what you would see nationwide. if you think about renting an

avolon bay home, it's about 5% more expensive to own a home in their markets thas than it is t rent. >> it's a no brainer in terms of affordability. where else, just broadly speaking in real estate, i noticed well tower has been a stock, a senior living play. you mentioned some of the data centers. it's a thing where it's sort of, yes, these are the places that have been working. so it sounds like you're saying stick with that for now. >> i think you need to. when i look at the alternatives within the market, i'm looking for those secular drivers of demand that i believe are going to really be able to provide upside to investors over a long-term period of time. so you look at a name like well tower, they absolutely have demographic support with the aging population, and the growth profile of their cash flows is going to continue to increase over time.

both equinix and digital are significantly benefitting from the increased ai and cloud computing, and just data. we were -- you were talking with salesforce earlier and how it really runs on data. the equinix and digital is benefitting from a lot of those same trends that we're seeing. the proliferation of data that's underpinning artificial intelligence is all housed in data centers. so that growth is going to have a multiyear trajectory. >> each pedia byte is 20 million file cabinets. laurel, thank you so much. we appreciate it. coming up, there's one cohort holding up the travel economy, kind of just heard about them. we'll tell you who they are exactly, and which companies are benefiting the most. this is one of them, up 17% ain month. we'll reveal it, next.

>> umgc has been absolutely instrumental in my post-military success. after doing about eight years active duty, additional four reserves, i wanted to go after that lifelong dream. since graduating, i've gotten promoted; and i'm able to operate with confidence now because i now have the technical expertise. at university of maryland global campus, i feel i can accomplish anything. >> learn about our more than 125 online degrees and certificates at umgc.edu.

welcome back to "the exchange." we haven't seen the slowdown in travel that many expected, and there's one demographic in particular being credited for keeping that demand going. do tell. >> it's the wealthiest demographic. if you look at the numbers, americans have roughly $160 trillion in assets, but half of that wealth, $78 trillion, belongs to baby boomers. new data shows this demographic is spending much more on travel. one in five are planning to take their longest trip post labor day. executives chalk that up to the pandemic, a greater appreciation for newer experiences. timeshare companies are doing to market to this customer, with ceo of marriott revealing that the average owner of its properties is 60 years old. >> about 80% of our owners are married and have children under the age of 17.

you could break down the ownership, so you can get a getaway weekend with just the husband and wife, if you want, or get multiple units and go for a longer multigenerational trip. >> multigenerational travel is leading to higher cruise bookings, royal, silver seas, and viking cruises are targeting this demographic. viking has seen its shares outperform with a number of analysts initiating a buy rating, calling the older consumer a key part of this company's growth story. >> it's interesting, we heard in the upfronts this season, that's also a place where there's a lot of baby boomers watching. i remember reading the stories where they said executives are no longer trying to hide that, they boast about it because this is where the spending power is. >> the companies in the travel world, sit a shift in mindset, kelly. for the longest time, these were the companies that were fixated on gen-z, millennials, trying to

get that younger customer on board or in the air, but now the focus is on this generation with wealth and so much invested in the stock market. so they're less immune to the economy or the market. >> thank you for bringing that to us. coming up, one more look at our mystery chart, one of the names on deck to report. our next guess is a buyer, especially on any weakness. that name and two more are chineain "rngs exange."

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

. welcome back. time if today's earnings exchange. retail and tech are driving the narrative. and so let's get a read. we have costco. and joins us for the day is from tankler investments. great to have you back. and let's start with the favorite costco. it is like a broken record saying an all-time high. but it is set to report third quaur quarter earnings.

are you still an owner? >> yeah, we trimmed it back, and it is expensive. i've often said if i had bought more costco stock instead of the major runs we made when the kids were your kids' age, i'd be super wealthy. but i think what you want to be paying attention to is they are taking share in consumables. so sorry target. and the company is growing ecommerce at a rapid clip not as fast as walmart, so we would like to see some guidance there. and then i think that you have to step back and say it is pretty hard for this company to have anymore multiple expansion. costco is expense difference even by costco standards. so if you have a get a run up in the stock, it would probably be prudent to trim it back. >> you wonder if they will do a

split. stock price $818. maybe some should go in the dow. >> well that would be nice instead of some of the soths wear companies. and they also have the special dividend which last year was $15 a share. and don't do it every year. but when at the do, it is really quite -- >> run upmore impressive than it looks. so maybe looking for opportunities to add. dell hasn't been a great day, stock trading somewhat lower into the print. but on a 260% run in the past year. they are look for a pc refresh. and talk about the hype. and a fun raenaissance story as well. >> and and it reminds me of microsoft. they are in the sweet spot of the ai hardware story.

they have not only servers, but will be listening to storage rereferring and guidance on pc margins. but i think that the street may be underestimating the pc upgrade cycle. if so i think that they will continue to perform well. trading at 23 times next year's earnings. if this is a secular tail wind, that is not terribly expensive. on weakness, i think that you add to it and if you don't get a big pop, i think that you still add to it. just pay attention to nvidia and how that stock has ablgsed eda. >> in a good way? >> yeah, maybe you get a selloff but then it has been wise to step in.

>> let's move on to mongodbp are you watching this one, what do you do here? >> yeah, so i think that the real problem this company has faced is that two years, a year and a half al go, atlas which is 63% of revenues, they went from a subscription model to a consumption based model. and there was a slowdown in consumption demand. macro slowdown. so i think what i want to hear from management is what their guidance is going forward. because frankly the experiment has not yet worked and wall street is not the most patient. i think that is why you've seen the selloff in the stock and it is trading at a ridiculous multiple.

>> i think people thought the beige book was optimistic. what i heard and read is that things are growing. and we were talking earlier about the b of a guidance. labor market is rolling over to some extent temperature or at least softening. and wages have rolled over. so we're pre-pandemic real wages. but lower. and wage growth back to 3r pre-pandemic levels. so you have to watch the consumer. and i think hot hand you stick with. baby boomers have a lot of disposable income and you stick with the high end. >> and so appreciate you letting us know. nancy, good to see you. that is it for the exchange.

up next, tlyler mathison and i.

good afternoon. welcome to "power lunch." glad you could join us on this thursday. it is thursday. and i know the down day for the markets. down close to 2,000 points in the two weeks since closing