well so brenda, quick final trade >> tjx >> jenny >> another contrarian play, abvie. >> cisco >> lulu again, a scary play. >> double down all right. you guys have a great weekend. "the exchange" is now. ♪ ♪ thanks, scott. hi, everyone welcome to "the exchange." i'm kelly evans on this friday here's what's ahead this hour. the fed's preferred inflation gauge coming in largely as expected, but one guest says it's a mistake not to keep a rate hike on the table we'll talk about where to look for opportunities from here. plus, the relative cost gap between dining in and out is at an all-time high, and that's good news for some of the staple stocks like this one, our am list sees 30% upside from here and joins with us the name and 98% of the s&p is now

reported, so virtually everyone. in fact, we'll look at how one company is leveraging tech to make earnings data more accessible for retail investors, and we'll talk about some of the trends that may have flown under the radar. let's start with dom chu and the numbers. it's been a steady slide away from 40-k, dom >> we thought there could be a recovery trade today, but we've lost some steam. drifting towards the low, the dow still holding on to a 1/3 of 1% gain to 38,241. but the s&p 500 has drifted down to 5205, down 30 points, or roughly one half of 1% even at the highs, we were up about 25 and down 44 points at the lows of the session. so, again, tilting towards the lower end of that range. the nasdaq composite, maybe some worry there for some traders and investors. it's taking the out-sized losses down 1.5%, so the tech heavier

trade down 235 points, 16,503 for the index. again, the context is, it's rough right now, but it was still a generally good month for the market speaking of, let's look at some of the sectors in focus in may technology and the utilities, two of the better performing sectors so far in the s&p 500 for the moment of may. meanwhile, the big laggard has been in the energy trade so far. so keep an eye on those sectors on a one-month basis with regard to the market cap spectrum, it is developing a little bit interesting right now, heading into the summer months take a look at the large cap, mid cap and small-cap smocks the large cap s&p 500, up 3.5% the mid cap s&p 400 up 3%, and the russell 2,000 up 4%. as things shake up right now, the small cap has been an underperformer but trying to play catchup still generally good month for the stock market overall some of the retail names, a huge focus the last couple of weeks,

a lot of volatility. it kind of continues today we got reports from gap store, up 27 p%. all of their brands all showing signs of strength on that earnings report. nordstrom's, up, even though it was an earnings miss, revenue game in better than expected costco is coming at record highs we saw yesterday, even on a better than expected report. ecommerce, and gold, silver sales pushing costco and vf corps, up 10% a couple weeks ago, kelly, we got some headlines about lulu lemon losing their chief product officer. she's going to the vp corp that's one of the reasons why shares are up 10%. back over to you >> so it hurts lulu stock, help vf the pce, the fed's preferred

gauge of inflation rose 2.7% in april, that in line with forecast but the core, food, and energy, a little higher than estimates and one of my next guest says rate hikes should remain on the table. joining me now are my two guests it's great to see you all here i know you've been a little more biased towards the hike lately do you still feel that way after today's report, today's data >> good to be with you, kelly. and as you just explained, the inflation figures are still very elevated and keep in mind that we have had high interest rates for almost a year. we have not -- the fed has not cut interest rates in about a year's time. and still the economy continues to be very strong, the wages are

going to be -- are strong. and despite the slight slowdown in the first quarter gdp number, this is still a very strong economy. so what that says to you is interest rate increases have not done the job yet or if you want to go into the expression of the federal reserve, the natural rate of interest, which neither stimulates or cuts back on the economy, is still much higher than where we are today. even the 5.5% federal funds rate doesn't cut it and you need something even higher than that so that you can have a restraining influence on the economy, and that's why the inflation number, the gdp number and the consumption spending number is telling you. >> you're not worried we're on the precipice of a slowdown in economists over at citi have been more tempered in their expectations of the employment

report, think we may only add in the range of 140,000 jobs could a slowdown be around the corner and help solve the inflation problem? >> the slowdown may be around the corner, but i'm not sure that it's going to solve the inflation problem, kelly because you still have a lot of liquidity in the market. fiscal spending has increased substantially, as even the treasury secretary acknowledged this week. they are going to keep the pressure on prices, so they are not -- you're not going to be prices come down significantly, even if you have a weakening of the economy. so the fed is not going to get a break. >> i know, jay, you're worried about inflation. where are you guys on what we might see in the employment report next friday are we going to have this -- i know this is michael's base case here, are we going to have a stagflation scenario to talk more about >> so, elly, our expectations for employment report is we're looking for about 195,000 jobs,

so that's a little of a bounsback of what we saw in april. so keep in mind, these numbers could be choppy on a month-by-month basis so what you really want to look at is the three-month moving average. we think that's going to continue to come down. you know, if you continue to see what we saw in the other part of this report today, that is spending, actually, real spending declined in the month of april we're starting to see signs of stress in terms of the consumer. if we continue to see that going forward, then those employment numbers are going to continue to come down and the economy will continue to soften up, putting some wage pressures, bringing them down to bring the inflation rate down, as well >> until that happens, i think if i'm not mistaken, you said we need more progress on inflation before rate cuts so i'm not hearing you say that's why the fed needs to get ahead of this and loosen policy. >> kelly, i don't think we're quite there yet. if you read the rhetoric coming

out of the fed, they want to see a number of months of this the point today in terms of the core pce, that is welcome. but that's the first .2 we've had in a number of months. we need to see more of that. are we looking for the fed to cut rates in the near term no i still think september is potentially on the table here. today didn't rule that out but, again, you need to see a number of months of .2 and softness in terms of consumer spending for the fed to cut rates. >> michael, i feel like the stagflation we might get might be a point in time, but not necessarily -- soin other words, the economy will slow but it takes a while for inflation think about car or home insurance, how much does the economy have to slow, 18 mobnths before that changes the way rates will move around i don't think we can expect that we're also going to see slack on

the inflationary side, unless that's your expectation. >> i think that's exactly what we're seeing, kelly. this has been the most telegraphed and long period of time leading to a recession, if we even get one. we're not sure about that. but it is, you know, that's why i say inching towards stagflation. you know, we're sort of getting there slowly we have had growth, but it's declining. job growth was strong, it's getting weaker the composition of jobs is more geared towards services and government versus industrial strength and animal spirits type job growth you've got higher for longer interest rates, sticky inflation. you have consumer data getting a little bit more nervous in terms of credit card defaults, auto payment defaults, et cetera. and you have corporate earnings that were basically pretty good for q1, but the outlooks were a lot more cloudy in terms of what companies are saying going forward. salesforce a couple days ago, is

that a harbinger of things to come come it's a disstingt possibility inflation is sticky, it hasn't worked its way through the system now and you have slowing growth where you get stagflation. >> are you worried about market breadth? our guest spoke about it yesterday that we're not seeing as many stocks kind of broadly experiencing the same gains and performance that we have seen the mag seven experience >> umm, i think the market's trying, and one of the previous guests mentioned some broadening out on one of the data points. so yes, it's been broader than it's been at other points of the year but no, it's still very, very concentrated and i think that is also sort of equity risk, if you will >> yeah. here's the note that said over the past week, breadth has

weakened on an absolute basis and versus the market, saying that could be a warning sign you've been in some of the more real asset, gold, silver parts of the market anyway, right? >> and the are we think in the long-term that's where you want to be the dollar is likely going to decline over time. we'll need supply/demand characteristic also benefit those areas. so these companies pay great dividends. if you're patient, you'll get a good return. but you may have to wait for a while. so yeah, we're still there >> jay, let me circle back to this morning's inflation number 2sh 2.7. where do you think that headline will be six months from now? >> we tend to focus more on the core, because it doesn't bounce around as much as the headline number there but if you look at the core, on a year over year basis, we still think six months from now, you're still looking at 2.8. that's largely because of base

effects. last year, at that same time, you saw some really soft sort of prints i think what's more important is if you look at the three-month moving average, that gives you the sequential rate of growth, roughly 3.5% right now we say six months from now, you're down to a 2.5% sequential growth rate. if the economy is softening at that time, which we think it probably will, we think that's probably consistent with the fed saying okay, it's time to cut rates. >> that's what i was going to ask you. six months from now, 2.8% inflation, almost 3% let's call it, and little to no payroll growth, do you think the fed would cut in that situation with inflation that high? >> two things to consider. when you look at the months ahead, kelly, one is what happens to inflation and let us look at it in an apolitical lens, as if there were no elections this year. if that were the case, i think the fed is itching to cut interest rates they can't wait to cut interest rates and take it down

that's why you see jay powell, every possibility, cheer leads the stock market wanting to pull back when the inflation doesn't comply so first thing, a few months from now, yes, they will want to cut interest rates if, in fact, this current rate ofinflation gets maintained. second, with politics in now, it's an election yeesar, and i don't think you can cut rates in september or beyond september and the november meeting date is immediately after the elections. and then, of course, it doesn't matter i believe the fed is very much a political body, and you cannot cut interest rates that close to the elections. donald trump has already said that he will not nominate jay powell if he's elected and clearly that should be weighing on the situation, as well >> so if they don't cut -- you

know, let me just kind of pin you down on this for a second before you go. if you're feeling hawkish right now, then maybe it's okay if the fed -- and you think maybe the fed is too itchy to cut and maybe they don't in september because of the election, but is that a good thing? does that mean they're keeping policy tighter for longer and that's what the economy needs at that point >> that's correct, kelly you're spot on i would welcome that policy that, for whatever reason they're keeping the policy tight. but here is the unknown. if something breaks in the system, you have a big problem in commercial real estate, you have a medium sized bank which is about to fail as a result of high bond yields because they bought treasuries at 1%, 1.5% ten-year yield, then the fed is going to step in and cut interest rates like crazy. that's the story that we have from the past. inflation is the target, that's what they are looking for. until something breaks and then you throw away the inflation

target and save the system by adding liquidity >> all right it does sound familiar hoping maybe this time might play out a little differently. we'll leave it there for now thank you all. coming up, we're sticking with inflation this time the record gap between the cost of eating in versus the cost of eating out we've got the fallout for consumers and some stocks that have been benefiting like this one, which our next guest sees climb 30g% or more from here google is responding to criticism about some, let's call them questionable responses from its ai overview search tool. what they're saying, how they're fixing it, and what it means for the next wave of generative ai "the exchange" is back after this this is "the exchange" on cnbc after last month's massive solar flare added a 25th hour to the day, businesses are wondering "what should we do with it?" bacon and eggs 25/7. you're darn right. solar stocks are up 20% with the additional hour in the day. [ clocks ticking ] i'm ruined.

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welcome back to "the exchange." restaurants from star bucks to mcdonald's, they've all been noting slower traffic this earnings season. combine that with xcommodity disinflation and you have the revival of the value meal. and it could be a boone for potato and fries company lamb weston that was our miystery chart shares are up more than 4% since mcdonald's reported a $5 menu meal peter gabo joins us. great to see you again >> hey, kelly.

thanks for having me on. happy friday welcome back >> thank you lamb weston would have been a stellar pack last year, but you know what happened in the last quarter and the stock fell, i don't know, 20%, 30% in late march. why is this now a moment of opportunity for them, and what happened what pulled the rug out from under them >> yeah, so look, kelly, a few things there was a bit of a transition that happened within the company as they cut over their enterprise resource planning to a new system that certainly hit some of the volumes in the quarter. but at the same time, you started to see really a slowing of that restaurant traffic from january and then into february and march. i think as you kind of pointed out, what we have noted since then is a real reaction on the part of a lot of the quick service restaurants, but even some of the capital dining chains that have moved back towards more of a promotional environment, seeing that the restaurant traffic is negative, saying we can't let this go on for too long

what is's the mix for lamb weston with dining out of home versus dining in home? >> yeah. so in their north america business, it's about 85% of the business that's away from home, about 15% that's in the retail channel. so it is heavily levered for a consumer staples name, it's levered to that away from home channel it's a good mix between the quick service restaurants and your mom and pop independent chains but we are hoping as restaurant traffic improves, if it improves, and that's a big debate point that you'll see a move higher in the shares here >> so if you go back to lamb's bad quarter in late march, it was warning us that we might get some mixed results from restaurants, which is exactly what we have been getting. you have some great interesting points in here about how we have seen this contraction, both in dining dollars outside of the home, but also at the home so where did all the calories go what is the answer to that >> yeah. and a credit to my colleague,

sarah, who is our restaurants analyst here we have been asking this question to each other a lot i think it's a function of a few things you're probably getting, at least on the part of the package food companies, more usage of leftovers, maybe a bit of less food waste so 40% of all calories go to waste, takes a small move in that i think in the away from home channel, we talked about the pressures. what sarah is noticing is that the larger chains are consolidating some of the share probably away from the independent restaurants. >> which makes sense let's go back to french fries. do you think we're in a positive inflection point where we will see more restaurant french fry consumption, and is the value meals coming out, is that a catalyst >> yeah, so a couple of things that's funded, the promotions are funded at the franchisee level opposed to the manufacturer level, so it's inkremental to a lot of the

french fry companies what's going to be the tell, these promotions kick in at the end of june, and the debate is, again, does that bring in an incremental customer we think it should as the companies start to sharpen price points, so that $5 lunch bupndle is a compelling price point. but the question we're getting feedback on, does that just cause the existing customer going into mcdonald's do they just trade into that $5 bundle so that's what we have to see here >> either way, they might be eating french fries? >> we're hoping they eat french fries. >> do you think if you buy the stock here, 30% comes from increased volume and people going to mcdonald's or maybe they're trading to that kind of meal in lieu of some of the other offerings that might be lighter on the potato experience >> yeah. i think it's going to be

definitely a function of that restaurant traffic number improving. that's certainly the month-to-month number we're watching here. a couple of other factors we're thinking about is lamb weston passed the enterprise resource planning issue they experienced in the third quarter i think that people need to see clarity that piece of the business has improved. and then finally, from a capacity perspective, this is an industry where there's always a bear narrative around too much capacity being added, we think that a lot of competitors are relatively full from a capacity stand point. so any incremental business should flow into lamb weston >> there's a lot of good news. you think prices could come down from eating at home. it could be a major inflection point. peter, thanks for joining us we appreciate it >> thanks, kelly >> 30% upside for lamb weston as a result still ahead, all you financial advisers, listen up. new numbers from goldman sachs show a generational divide when

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week of losses the s&p and nasdaq are set to snap five-week win streaks all three are set for their sixth positive month out of seven, but 40-k, as someone said to me the other day, sometimes they do ring a bell at the top take a look at the other movers. mongodb cut guidance for the first fiscal year, coming off a third straight quarter of slowing revenue growth, climbing only 22% in the last quarter elsewhere, shares of dell are down 22% now, after the company gave disappointing guidance andry vealed a lower than expected server backlog, raising concerns that their ai servers are being sold at near zero margins it was a big more over the past year one name bucking the trend

is zrvscaler after a 30% jump in billings the ceo will join jim cramer tonight at 6:00 p.m. to tyler mathisen now for the cnbc news update >> thank you very much the texas supreme court today rejected a challenge to one of the strictest abortion laws in the country. several women who suffered serious pregnancy complications filed the suit, arguing that the ban doesn't offer enough clarity on when exceptions are allowed the decision was unanimous all nine justices are elected and are republicans. according to authorities, at least 33 people are dead from suspected heat stroke in india several regions in the country in the middle of a heatwave, with temperatures reaching a record high in deli of 127 we're going to go now to joe biden, who is making remarks after the trump verdict yesterday. let's listen >> good afternoon. i just want to say a few words

about what happened yesterday in new york city. the american principle that no one is above the law was reaffirmed donald trump was given every opportunity to defend himself. it was a state case, not a federal case and it was heard by a jury of 12 citizens, 12 americans, 12 people like you. like millions of americans who served on juries, these jurors were chosen the same way every jury in america was chosen it was a process that donald trump's attorneys were part of the jury heard five weeks of evidence, five weeks after careful deliberation, the jury reach eed a unanimous verdict. they found donald trump guilty on all 34 felony counts. now he will be given the opportunity, as he should, to appeal that decision just like

everyone else has that opportunity. that's how the american system of justice works and it's reckless, it's dangerous, it's irresponsible for anyone to say this was rigged, just because they don't like the verdict our justice system has endured for nearly 250 years, and it literally is the corner stone of america. our justice system the justice system should be respected, and we should never allow anyone to tear it down it's as simple as that that's america that's who we are. and that's who we will always be, god willing. now to another issue i, uh, i want to give an update on my efforts to end the crisis in gaza. for the past several months, my negotiators of form policy and intelligence community and the like have been focused, not just on a cease-fire that would iv

evidence ably be fragile but an end to this war, one that brings all the hostages home, ensures israel's security, creates a better day after in gaza without hamas in power and sets the stage for a political settlement that provides a better future for israelis and palestinians alike. >> joe biden giving his first public remarks after president trump's verdict yesterday. also, he's going to make more comments about the middle east let's bring inmy next guest to react to what you just heard from joe biden and, again, the significance of what's happened in the past 24 hours >> those are the first remarks we're hearing from biden and seeing him stand up for the verdict, saying this is the rule of law, we must respect it this is the way the justice system works in this country he said it was dangerous for anyone to suggest that this was a rigged trial

it's a pretty direct shot at the former president trump and his campaign and allies have been saying for almost 24 hours now, since the verdict they have been saying there was no way this was a fair trial we heard the former president say this had never happened to anyone else before whereas biden was trying to say this ishow the system works. he did allude to the fact that we're likely to see a very long appeals process, so we're not at the end of the road for this we're seeing both candidates really shift into full campaign mode at this point biden wasn't doing it right there from the white house, but he and trump have been fund-raising in a major way today. we saw the trump campaign announce they raised $35 million since the verdict was announced last night down ballot candidates and campaigns are raising, as well so that's where we're shifting is more into the campaign talk from here. >> indeed. megan, thank you very much let's dig into what the trump verdict could mean for the election and the markets brian gardner is standing by

and larry savano from the university of virginia any knee jerk reaction, brian, as we ponder how this will all unfold in the coming months? >> the knee jerk reaction is there's not much of a reaction any time yousee a headline of major figure being convicted of anything, it gets your attention. but the follow through of what it means for the election and the markets by extension, i don't think this is a needle mover. it doesn't fundamentally change the direction of the election. that being said, it's going to be a close election, so small shifts matter, but i don't think yesterday's verdict is a game changer in any way, shape, or form >> larry, a lot of people are watching the poll where 17% said it might move the needle for them most said it would not elections are close, though. and so i think they're paying close attention to things that could make the difference. >> yes the preverdict polls mean

nothing. most polls mean nothing, they're ephemeral. but the polls you're citing and i've seen others similar to that, suggest there will be a slight negative effect for trump. i think that's true. the question is, how long does it last? this is the end of may, and the election is from the end of september to the first week in november so we have a long time to go two debates, both convention and lots of other things that aren't even on the calendar so i agree with that in a way, it's kind of shocking that in an earlier era, and i'm old enough to know, what was happening -- what would have been happening today is th republican party would be scrambling for a new nominee instead, the republicans are rallying around trump and he's able to raise $35 million in a day, less than a day so things have changed not necessarily for the better, but they've changed.

>> brian, the big news prior to this was that maybe elon musk would play some kind of advisory role in a trump administration what do you think we watch out for in terms of moving the needle is it the figures who might be close to him, the indictment itself you know, the circus around whether that's jail time and how that plays out later this year, or i guess my question is, is it ultimate ly policy voters want o hear more about, or is it more of a personal level what happens to donald trump as these trials continue >> ultimately, i think it comes down to voters what it means for them, and what policies mean for them and i think the election is shaping up so far, it can change, but right now, it appears to be a referendum on joe biden. and that's a negative for biden. so voters are looking at the economy, they're looking at the

border, they're looking at the things that matter in their daily lives. this is a sideshow for them. there's nothing that came out yesterday that changes their mind about donald trump. they have known about his character going back to 2015 and earlier. people didn't vote for him because he's a choir boy voters have always dismissed that ultimately, it comes down to who is the person in the white house going to make life better for folks? right now, that's not a good position for the biden campaign. that's not where they want to be >> larry, what would you add to that >> well, i'm going to say, again, it's the end of may so there will be a lot of other issues thrown into the mix i would add to the ones just mentioned, abortion, reproductive freedom, and democracy, which biden keeps stressing. and, you know, trump reinforces that in a lot of ways. i was personally shocked, even knowing the trump record

to hear a former president of the united states say america is a fascist state. let that sink in for a moment. i know it's donald trump i know he's said lots of controversial things -- >> that's not even top of the list >> it's shocking >> i think the debate also probably have a lot of shocking rhetoric like that brian, what's the significance, if any, of joe mansion officially becoming an independent, is that timing koins den coincidental >> i don't know. regardless of what his future career is, i think the message is that you're seeing the continuation of a culturally conservative voter moving away from democratic party and to the republican party both parties are undergoing these realignments with working class voters first white working class voters, you're starting to see

black working class voters starting to move republican. and i think mansion identifies with that bloc at the same time, you're seeing white, college educated wealthier voters moving in the democratic direction i think mansion, regardless of what he wants to do in the future, he's just aligning himself where his base has been moving toer the last decade. >> larry, quickly. as we try to figure out who might win the race for the white house, how does the whole constellation appear to be shaping up, which will influence policy and what the markets care about, what's the divide in congress, will it be a party split? just give me an early sense of what we might see play out here. >> sure. you did a survey of political analysts and elites, they would say biden is in deep trouble and trump, despite the conviction is headed for a second term in the white house. i think, as i frequently do, i

disagree with the consensus. i don't think it's going biden's way necessarily, but this is a very close election. and it's going to be close in enough of the swing states that if they move a point or two because of anything, it will determine the result we're not headed for a landslide. >> all right i guess the markets like gridlock so they can think about what that would imply for policy thank you both now over to a news alert what is on tap, julia, do tell i think i know what this might be about go ahead headlines coming out about paramount. paramount directors agreed to recommend the latest merge offer from sky dance, reported by "the wall street journal. and what's happening right now, according to this report, is that sherry redstone is now

examining and evaluating expressions of interest from both this skydance offer, which was just revised and i reported on that yesterday, as well as the interest from sony and apollo, so this new headline now about paramount directors recommending the skydance off. paramount says no comment. but the question now is what happens next we see paramount shares are flat on this news we did see the stock go up yesterday on the news i reported that sources told us that skydance increased its offer, sweetening the deal for the class b shareholders in order to get that deal done so, shares are flat, but the question is what does sherry redstone decide to do? we are awaiting comment from skydance and paramount >> julia, do tell. who is the -- steven paul, hollywood producer, lining up financing to make an offer of around $3 billion according to reports. this is a person we should be familiar with? what is this all about

>> so i think the question here is really looking at what a deal for paramount will look like there's pair mount global, and there's national amusements. sherry redstone is the controlling shareholder of pair mount through national amusements so i don't have the details on this deal. there are headlines here talking about steven paul looking to acquire national amusements, which would be a vehicle to controlling paramount global, because of those controlling voting shares. but it seems like at this point, the deal that is furthest along in terms of due diligence and conversations, is the skydance offer, which yesterday became more appealing to the class b shareholders one of the challenges of the offer is that there was a lot of concern about shareholder lawsuits, because the deal seemed like it would be preferential of sherry redstone over the shareholders. so i don't have the details on this latest offer, but the two that are the skydance offer,

then the apollo/sony interest, those parties are in the process of due diligence and conversations what that keel would look like. the challenges are is there some issues around ownership and the fact that it would be a japanese company acquiring some of these assets and the question if there is anti-trust concerns there in terms oh of the size of the companies merging there. so a lot of different pieces in play here, but it's all ultimately up to sherry redstone >> thank you for boiling it down, because it's certainly complicated. thank you. a new report finding sharp generational divides among retirement safes who pay financial advisers to manage portfolios and those who believe professional advice would reduce their financial stress sharon, questions people should be asking when looking to hire an adviser >> absolutely. more than a quarter of baby boomers, 27%, say they'll pay a

financial adviser to manage their retirement but the percentage is far less for younger generations. only 7% of gen-z, 11% of millennials and 17% of gen-x have hired aben adviser. more than 1/3 of gen-z and millennials are in favor of working with an adviser, compared with 28% of gen-x and one quarter of working boomers there are many times of advisers to choose from, from a robo adviser to a financial coach, a certified financial planner or wealth manager, even a financial therapist, who combines coaching and behavior therapy to find the best fit, it's important to ask about the

adviser's qualifications are they a fiduciary, and how are they paid? an hourly rate, flat fee, or a percentage of assets in the management there's a subscription model where you pay an adviser an up-front fee for a plan and a monthly retainer for a period of time understanding how advisers are paid and finding value in the advice are key to sticking with that add visor >> they offer more options that we love our adviser. it's not all about 1% of assets. there's different ways to structure that but it made me laugh when you said financial therapist is a real thing i feel like that's what ours is. to have an objective person who can take your facts, take your pondering and put some data to it, and just talk through -- it's really helpful. >> financial therapy is a special qualification. >> i had no idea >> every financial adviser who has a wholistic approach needs

to have some empathy and some understanding of behavior science, because understanding what the purpose is for your client and how they're going to stick to their plan is key for them to do it. you can't just be, you need to do this, this will generate this amount of return and you can withdraw this amount of money when you're no longer working. what is your purpose for financial independence and to achieve that now, and then in the future, as well? >> i could see kind of a gateway drug, so to speak, being a robo adviser to get people comfortable with the idea maybe i don't have all the answers, and maybe this technology can help me think this through, but maybe i need to go a step yornld t -- beyond that. there's often no replacement of having someone to look at the whole spectrum there's so much that goes into it >> it's the same for me, when i started with our financial adviser, what are these different stages we want to make sure we have

someone who will hold our hand and give us advice along the way. that's the part that financial advisers that are using ai and incorporating robo advisers into their own practice, say thing is helpful maybe for recordkeeping and scheduling, maybe for some stock picking. in terms of helping our clients with their purpose and defining and and achieving that, you need to have the conversation >> great questions sharon, thank you, as always google is doing damage control for yet another ai product. it's now scaling back that new search tool it just unveiled after users reported getting questionable and sometimes down right bizarre results. deidre bosa has the story for today's "tech check. deidre >> kelly, some of those questionable, bizarre results centered around the ai overview telling users that you can eat a certain amount of rocks a day for your health. it's healthy to do so. another one was suggesting using glue to thicken your pizza sauce. these things were clearly

ill-advised, they were wrong now google is setting the record straight, explaining to users why the algorithm did so, and what they're doing to change it. they've made over a dozen technical changes, writing they tested the ai overviews before they rolled it out, but there's nothing like having millions of people using the feature with many novel searches. in the case of eating rocks, it goes back to an onion article. the algorithm has trouble sorting between social media posts and what is more credible. so what you see in generative ai for the companies building large language models, you see a lot more deals happen between them and publishers or media outlets. there was openai yesterday announcing a deal with the atlantic, and one with box media. you'll get a different model

with different levels of credibility, whether you take from the atlantic or reddit social media threads in the meantime, there's going to be mistakes made. again, this is another setback for google remember its image generator had to do a lot more damage control, but google is moving faster. they were criticized after chatgbt came out for moving too slowly now they're moving faster and willing to make more mistakes. >> i always like to bring him up, but i thought ben thompson really distilled it nicely, say thing is the opposite of 500 years ago with the mention of the printing press disseminating all the knowledge. now we're all just going to come down to one answer, and that answer has to be very, very good and i wonder how much google and openai and all the rest are going to have to ultimately pay providers of good answers to make sure their answers are great? >> right it really matters what the source material is

that's what you're getting at. social media post versus a credible news source so i want to show you this chart. these are publisher deals with openai like i said, they've been on a role i mentioned box media and the atlantic but there's the ft, there's news corp i went to google trying to figure out who they had cut deals with it. we know about reddit but not much else that's really what's being sorted out and negotiated. this is what ben thompson is referring to we're still in these early stages, and it's really important how these models are trained. and it also kind of high lights the difference between closed source models like google and openai, that we don't necessarily know versus an open source like meta >> true. absolutely it's fascinating don't eat rocks. >> not an endorsement. >> deidre, thank you coming up, never mind the quarterly numbers, it can be the

guidance or management commentary that determines how a company's stock moves after the report we'll talk to a founder that uses ai to track key trends. that's next. as we head to break, a quick check on stocks. the dow is moving towards session highs, up 200 points. h to recoup the backward slide the s&p down 18 points the nasdaq down more than 1% today. we're back after this.

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welcome back to "the exchange." 98% of the s&p have reported results this season. take a look at the numbers 8%earnings growth, nearly 4% revenue growth, both above expectations how come those are the numbers, but just as important, the commentary, some of the more hard to quantify aspects of these calls? my next guest's company hopes to make the earnings calls more digestible and acceptable.

it picked up on some interesting trends in the process. joining me is the founder of borsa stock market in spanish, basically. >> a lot of languages. >> welcome thank you for being here. >> thank you for having me. >> what did you glean from this earnings season? >> the obvious one is a.i. every call i listen to, whether the management team is talking about it or some analyst will bring up questions like how does a.i. impact what you're doing. what is interesting is even if that company's product service doesn't necessarily get impacted by a.i., they'll still reference how they're using it for some internal efficiencies. i think that's like every quarter we have is a trend of topics that come up, and a.i. is the one for now. >> the new big data. big data is so 2016 and now it is all a.i your company itself, how long have you been using a.i. and what are the use cases and how is that evolving >> yeah, so, it is kind of just a quick context, we aggregate earnings calls for over 3300

companies. we have an ios and android app we were quite well known for being the earnings hub we have the audio for calls, we do the transcripts, so that's nicely integrated with the audio, you can click on any portion of the transcript and it takes you to that point of the audio. we do the presentation slides, you can follow along with the management team as they reference the charts and tables. and then we have the earnings releases as well more recently we have explored, well, how do we use a.i. to help investors learn about the companies they care about, so we started early this quarter, we released a.i. summaries and what that means is we take the opening remarks and q&a portion and organize it into the citations for those bullet points >> is it expensive undertaking for you to do all of this? >> it can be, yes. we try to find ways to be really efficient with it. we're a small team so we -- >> who do you use?

open source models, closed >> a combination of multiple that we love. >> what do they charge you >> it is -- so we actually generate our own transcripts, and so we kind of base this on the transcripts that we have, and, of course, it depends how long the transcript is and how long the output is as well so, obviously varies from company to company. >> what do you charge users for access to all this it is incredibly helpful i guess i'm thinking through not only your own business model, could i just use a.i. myself to say, just give me a summary of the burlington stores' call and where is the part they talk about the strength of the low end consumer and that indkind o thing. >> the way we use the summary, that's the starting point now when they pull up a company or maybe someone tells them about a company and they say, i'm not going to invest the 30 minutes, 40 minutes to listen to an earnings call, let me skim through the summary. hit the high points, maybe here is something about the guidance, click the citation, i read the full context about that part of

the call we have seen a change in the way users are approaching earnings calls. our charging is very simple, $450 a year subscription you get a lot for free, but we have some additional kind of notifications, ability to download, summaries, our chatgpt and earnings content. >> there are others doing it how do you stay ahead? is a.i. that edge? >> i think it is one of the ways we don't -- i don't start with the technology and try to create problems to solve it we kind of stay very close to our users and say how can we help our users learn about the companies they're interested in. and if a.i. is the tool for that, we'll try to find ways to have that all be behind the scenes and really focus on the user experience and that's how we stay kind of -- >> using a.i. to help companies, to learn about the companies who are also using a.i that's the theme of this thank you for coming in. we'll check back soon. thank you.

that's it for the h"the exchange." thank you, everybody tyler is getting ready for "power lunch." i'll jonein him on the other sie of the break and electricity... are forever in bloom. welcome to beyond. the mercedes-maybach eqs suv.

♪ ♪ [ 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. ♪ ♪ . good afternoon welcome to "power lunch. with kelly, i'm tyler mathisen the dow is higher today, not by much, but it is in the green we have been down five of the previous six days. and all five losing days were 200 points or more the one up day was 4