>> health care universe, i want continue positioning there. >> you have out in chicago the annual cancer conference. so you've got some interviews on the networks and you'll probably have more throughout that event, too. >> plus lower rates with biotech. >> dow is off the lows and nonetheless, you're looking at a near 400-point decline and see you in a couple of hours. see you then. thank you very much, scott. welcome to "the exchange." i'm kelly, evans as we kick ofa new week. the mexico etf is dropping to a new low and the trades out of the u.s. right now. tim seymour and we just learned what they are and he'll explain the acronym and tweet me if you can guess the letters and plus, we're drilling down on the consumer trade and the stock hitting all-time high in earnings and even if the macro

backdrop deteriorates and that's the worry in mark today, and a look at the sector winners so far this year. the names in it to have more upside and the ones to steer clear of and the three buys coming your way. first let's get to today's markets and dom chu has the numbers and we're kicking things off with the same old story. >> we started off modestly positive in ecertain parts of te market and the dow industrials currently down 3400 points, and 394 downside, and a 1% loss and 38,285 was the last trade and the s&p 500, the broader measure is at 5244 now which is down 33 points or two-thirds of one percent. at the highs of the sessions we were roughly up 25 points and then down 37 at the low. so again, tilting toward the lower end of the trading range so far today. about a one-third of 1% decline for the nasdaq composite index that was decently at positive

territory and it's off 51 point for the one-third of 1% decline. the meme stocks are up again after last night's roaring kitty and that kicked off the original meme stock movement. twitter showed a posted position a screenshot of a very sizeable position in gamestop shares and that's reason yet shares are up 31% right now. i will point out that earlier this morning on "squawk box" it looked like it would double at one point. gamestop is up $30.56. and amc is up 13% and sunpower is marginally moving and plaque berry and reddit up 2.75% and we'll watch the meme stock trade and the current state of play is we kick off a fresh trading

month and we're getting into the month of june now. you can see here from a macro standpoint, the ten-year treasury yield starts out this month at a 4.40% rate. remember, just about a couple of weeks ago we were talking about 4.64% and a quarter percentage point lower for their yield wti crude prices, and gold prices, 23.72 and even bitcoin prices, and i'll start you off right now for the month, kelly. 69,005 and we'll keep an eye on all those macro indicators. i'll send things back over to you. >> dom, thank you very much. manufacturing data in both the eurozone and china showing some signs of recovery and may new orders declined in the slowest pace in two years in europe, that's an improvement while the economy grew the fastest since june 2022. global manufacturing pmi was revised higher for may and confidence improving ramping to the fastest pace since july and

yields are lower today. the ten-year hovering over 4.4% and stocks are under pressure and let's talk with catalina simonetti at morgan stanley private wealth management. great to have youio here today. welcome. >> thank you for having me. >> it's interesting in the span of a week, what's changed? how do we go from having a stagflation and inflationary scare to more of a slowdown one? >> kelly, stocks are trading in the narrow range right now. we had a pullback in april and the snap rally in may and now it seems to be the possibility of the soft lending is back on the table so there is enthusiasm about that, but you know, now that we are early in the month of june it's natural that the market will be trading sideways a bit as we are figuring out valuations and it will probably remain in this range as we're going into the next earnings season when we will finally see some more headline-driven movers

for the certain parts of the equity market. >> i mentioned there were a lot of different manufacturing data out and probably the biggie is the ism manufacturing report, and it was a disappointment. it declined. this indeckx has been in the gutter for a cup of years now. the bulls say ignore it, and it's post-manufacturing covid-specific and the bears say at some point this information that the rest of the market and the economy might catch down to. which camp are you in? >> i think the global economic rebound and the uptick in manufacturing data as well as recovering commodity prices and it's certainly a positive indicator for the market, and we can use some of this positivity with the major concerns over the fact that we are in the high interest rate environment which, of course, is affecting the consumer, and as we see the rising credit card debts, which gives us a pause and that's why we favor consumer staples over

discretionary, for example. look at the portfolios for quality because the data on our side indicate that the fed is probably going to stay the course regardless of the fed meeting that is about to happen, and they're most likely going to wait for the cpi numbers getting closer to their target data before they're going to move in the rates which means that this environment is going to affect both consumer behavior and corporate earnings, but it will take all of the data for the global expansion and also manufacturing as a positive. we can use all of the positive data you can get. >> let's talk about corporate bonds for a moment because if you want to put together a constellation of data points and the fact that high yield and the areas have been so strong would certainly belie the fact that we might have a slowing economy and suggest that manufacturing is in its own world. do you like yields where they are and an almost

generational-type spreads. if we have a pickup in inflation and this has been anything, but a market, and investment grade, high yield and where do you think it's attractive right now. >> kelly, we're overweight investment grade, but with that, both treasurys and corporates seem somewhat rich at the moment and this is if you take the short-range view, but in the long-term view as we should be takingin taking when it comes to portfolio design and we are in the high interest rate environment and we have not been in this environment for many years. we tell investors this is the time to improve the quality of the fixed income portfolios whether it's on the treasury side and investment grade corporates that we really like and also the high yield and preferreds. this is the time to take a very close look at the fixed income portfolios and make sure that they're positioned well going

forward so we can enjoy the high rates once we're in the lower interest rate environment. we don't upon when it's coming and it is on the horizon. >> we are heading into a lower rate environment and it would seem like a no brainer and at least this week when thought we may see higher yields. quickly, what about energy. some plays like golds and reits and commodities and we talked about real assets and if you think a slowdown might be coming. what do you do with those areas of energy? >> we like energy companies and we think they're positioned really well considering limited supply and strong demand. they have been profitable and they are going to, in our view, continue to be profitable so we very much recommend that they should be part of the portfolio and also energy companies, they have great dividends and when it comes to so much uncertainty and the ups and downs of this market which make investors so nervous having the strong dividend plays

in the portfolio is, and energy plays in that. >> catalina simonetti joining me from morgan stanley private wealth management. india is hitting record highs predicting a decisive election win for prime minister modi which would make it his third term. for more, let's bring in seema modi. seema, what can you tell us? >> excitement seems to be growing on the political continuity. if the exit polls are right, the key challenge will be jobs beyond india's growth story of rising unemployment and a low labor participation rate primarily among women. it could slow down the u.s. expansion plans and the council of foreign relations manjari miller said if, in fact, the pollses are right and modi wins a third term his options include competing talent. and they've been pricing a modi

win with stocks hitting a record high and if we look across emerging markets it remains the most expensive market and it's more expensive than stocks in the u.s. and europe. retail participation in india have been growing around $700 billion a month and two times according to jefferies and if they continue to expect high single-digit returns in the indian stock market, with the small, upward revision that the results bring a further upside surprise, the official results come out tonight. >> a lot of people would say so much has been priced in in terms of india's success and outperformance and so forth. i wouldn't say there's muted enthusiasm given the market's reaction and they expect more of the same it seems with them staying at the helm. >> there's a trio of economic reforms, kelly that modi has been campaigning on over the last couple of months and one is infrastructure, labor and land.

as we discussed, the workforce is slowing down and major companies being able to see their investment plans come to fruition and that will be a key topic of children and not just for the indian government, but foreign governments and investors inside the country, kell. >> from seema. we appreciate it. the wwtx which tracks the stock market in mexico is after the first female president, and claudia sheinbaum after plan youel lopez obrador and let's talk about why and other global opportunities with tim seymour with seymour asset management and a cnbc fast money trader. a lot percolating. >> hi, kelly. >> do you think mexico -- bring us up to speed with the market there in the last couple of years. amlo, no one is expecting him to

be friendly. >> i'm sure we'll get there too, but the emerging market economies and markets to invest in even though it's only 3% of the msci and mexico from the covid lows if you look at the eww, which gives you currency exposure to the peso and the top names in that index you've outperformed the s&p by about 53% as you got to mid-december. the market has been wrestling with the election cycle and clearly the outgoing president, the kind of support for this type of policy was certainly ultimately market friendly. the real surprise in the election result is in congress. does sheinbaum have the mandate and then the ability to push through the type of reform that would be concerning for markets that are looking for market reform-type policy. people are very concerned about the energy sector. on some level they're concerned about the budget. these are two places that i'm not so sure that will be as ugly as the market is pricing. part of it is a function of

where we have come from and the peso has been a buy the dip currency because it's been a parity for years now. >> you're telling me that mexico has been a major outperformer since covid. >> yes. >> which is shocking. we hear about the gang violence still plaguing the country we know the previous president was friendly. what coulds for that outperformance? >> i think the stable oil environment, and some other people might say that's a difficult argument. i look at the price oil and what's still an oil economy on some level, and what we see in terms of global is very mexico friendly. >> at times, mexico is on the other side of that political argument in terms of where the u.s. was courting vers us pushing back. i think mexico is a story where it is a great story where the

fisk, and it's quite easy. we'll see. you don't have to make this trade today. let's see who the cabinet is and the finance minister is and a sense of what the budget looks like. this is an opportunity and not a reason to run too far from the door. >> still, if she's supposed to be similar to her predecessor investors can expect more of the same and that would be a good thing. i want to switch gears and talk about europe and we mentioned some of the pmis there are looking better, but you think at this point it's just all about the companies. who is granola? >> this is another one of the acronyms and whether you eat granola you might find this interesting or not. you talk about dmrakso, and roche, and asml and novo nor disk, and you have in sap in terms of software and you have a

chance for europe's fiepting back in terms where they didn't have the exciting growth stories. you look at companies that are big, global companies paying high divs. i'm with an etm called idif vo d they find stocks that are defensive of the cash flow profile and europe which has underperformed for such a long time started to show some outperformance over the last six to 12 months. it's been sideways and it's certainly been keeping pace and these types of investments are not swinging for investments and it's getting high-grade companies. >> i was thinking you should go with muesli. on india, what do you think of the idea that there's still outperformance to be gained if that's how you describe it if you invest in the market now. >> i would, seema nailed it as she does. india is expensive and it's been the substitution for china and it's the demographic profile you

want in asia. you have the demo, you have the growth and the leader who has proven to be very, very market friendly. so you have an opportunity for some of the growth to continue and think about the u.s. companies that are looking to india as the next leg of their growth. so i think both in terms of the -- the index waiting factor, india is catching up. it's almost 18% of the smin so you have tacticals in favor. india continues to outperform because it's what china used to be. they're comfortable with governance and be careful about that and india's governance is extraordinary at times, but it's a very interesting place to invest and i think it's a place where this election result only reaffirms and that's a market that's been a steady grind for the last two to three years. that hasn't had the kind of volatility and it's a great story. >> it's a great point and it ties back to mexico that both are what china used to be or as the u.s. forces the supply chain and there are two key beneficiaries and or in some

cases because of the politics. >> tim, for now, thanks. tim seymour, seymour asset management. coming up, this name touching record high after volatility last week. up next, we'll hear from one analyst who is raising her price target saying 10% more from here, and what it will do regardless of the macro. we'll talk about it next. plus, utilities coming off the best month in two years and there's one underperformer in the group that our trader looks and we'll talk about it two buys and a bail. "the exchange" is back after this. this is "the exchange" on cnbc. and ask for something for memory, i recommend prevagen. number one, because it's effective. does not require a prescription. and i've been taking it quite a while myself and i know it works. and i love it when the customers come back in and tell me, "david, that really works so good for me."

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welcome back to "the exchange." retail earnings season is just wrapping up giving us a look into the health of the consumer, warehouse giant costco hitting an all-time high again after beating on all key metrics last week and my next guest says there's still more room to run. she raised it from $50 to 890 and laura shenbaum is with us. great to have you back. >> thanks for having me. >> i went back and looked up the home depot call which i thought was one of the great calls. you made that call on october 8, 2021 and the stock had a blowoff top of 10% higher and when you downgraded it back then you absolutely nailed the inflexion point and now here we are at 328. so before asking you about that i would ask you more broadly,

what kind of inflex point, if any, do you think we're at with the consumer right now? >> youio know the consumer is holding up okay. it's a slow growth economy from the consumer perspective and as you point out, i cover the home depots and the costcos of the wo also burlington, ross, the more discretionary category is the more it's under pressure, but best in class retailers also do well. it's part of the our call in costco. >> costco, why 10% upside? why not more at this point? just the valuation? it's probably one of the most expensive real deal stocks in the market. >> it's a good point, and i would expect -- we've been stair stepping up our price target on costco for almost 20 years. so i think this 890 is on the way to a 920, but they do have to earn their way up. we do think this is a consistent performer in a number macro environments because most of the cash flows come from the

members membership fees. costco just works. >> why not raise the price target more, but here's the thing that's tough about costco as all investors know. it's worked for 20 years. it's been expensive and you correct me if i'm wrong, for 20 years. it's been crowded long for, i don't know, 20 years. is there any reasons to pile out of it? >> a couple of reasons to pile in. the ceo has been there a long time and more intriguing for those of us that covered it, and after the 16-career at kroger brings the rare outsider insight and his specialty is more on using consumer data. no company has consumer data that's as valuable or as complete as costco because you give them their membership card every time you make a purchase. so his ability to do some sort of new economy things like monetize their retail media

network could add to this. the new ceo has been more public in saying that their margins could move higher. so i look at next year i'm 250 ahead of consensus for eps and that's assuming they add a billion and a half on sga expenses and it's conservative. >> now that we know from reports in the journal and elsewhere that a lot of advertising dollars are shifting away from retail and you have to imagine if they had the benefit of the cardholder data that that could be a gold mine. >> putting costco to the side, then, do you expect some broader slowdown with the consumer and where else are you quite confident in your coverage universe and where are you more hesitant. >> you know, we've seen it. i cover big ticket spending and i cover whirlpool and appliances and temper sealy in bedding and all of those companies have seen double-digit declines for

several years now. really, if you look back even at the home depot and lowe's the two-year comps they haven't done this badly since the 2009 downturn. we are more likely to see an inflexion point higher, and we need the fed to play along and it would be lovely if interest rates would be cut, but we don't expect things to get terribly worse from here because those big-ticket categories that are interest rate sensitive have been impacted. >> that's really interesting. laura, you always have a different spin on it. love checking in with you. thank you very much for your time. >> laura shenbiem. the retailer could gain more marketshare and just scan that qr code on the kreen or go to cnbc.com/pro pick. coming up, it's been a roll are coaster ride for paramount investors and the saga could finally be coming to a close with the merger potentially day away. david fabejos r inus with his latest reporting on that next.

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we are now at 38 and change and we are down 361 points and negative for the s&p and for the nasdaq today. ten-year treasury just a kiss above 440 and i called some of the growth trajectories we previously anticipated in the question. up next, paramount shares after david faber reported the company and skydance have agreed to terms of a merger. david joins us with the details and remind us here, the whole story. david, it's great to see you. thanks for joining us? we'll try. it has been, as you said earlier, quite a drama. it does have one more final act and that involves sherry redstone and i'll get to that because it's not unimportant and we'll give you the details of the deal reached between the board of directors representing the b holders or the smaller vote holders of the company, the common, and skydance and its partner redbird and there it is. 2 billion will go to national

am amusements and it's controlled by sherry redstone and they tender for less than 50% of the b shares. it might be something for the a's in here as well, kelly, but at 15 and you get a choice essentially at the close of the transaction and do you want to roll in because you really believe in the plan and you don't have to tender, but that's an opportunity. they also put a billion and a half in cash in the balance sheet and that helps from debt reduction to get this company back to investment grade and ultimately post close where you have skydance merged in at the high 4s and billion valuation and you have skydance and larry ellison and his dad, of course, the multi, multi, multibillionaire and redbird and other partners owning two-thirds of the common equity, not to mention complete control, as well. or large control of the a shares which have so many of the votes. that's the deal as presented to

sherry redstone. by the way, it's not a deal that will be up for a vote by a majority or minority of shareholders. the special committee has done their work and they've now passed it to the control shareholder. the expectation been from my reporting in the past given that i heard miss redstone is said to be favorable toward the red bird, skydance redbird transaction would be that she would approve it, but from what i hear lately it will be down to the wire and no shortage of drama, i guess, and there is a slight litigation risk it would seem in term of shareholders saying you didn't get the best deal and you did so and therefore we want to be compensated and there's no indemnification and therefore, will there be litigation risks that in some way would be a real concern for miss redstone and it's what you see at the typical

end of the deal which i believe, should we really do this and it believes the company should, because if they thought the go it alone strategy was a good one, they didn't feel that was a viable strategy for the company at this point which does have three different people who were running it rid now and faces a host of challenges, we've discussed so often. it is in sherry redstone's hands and the read i'm getting now is we'll have to wait and see. it's going to take her a little time for her lawyers to go through everything and figure on the where she wants to come down on this and that's why even though they have a deal done, wooe no we're not seeing an announcement today or tomorrow when they have an annual meeting and it could be days and i think the expectation is she'll say yes, but after conversations i can't say it's deafen tiff. >> bring it back to the consumers and we know cbs and

the cbs sports and the streaming platform and the whole company will be owned by a production firm and a private equity firm. what are their plans for it? what will this look like in three to five years' time. maybe no different. >> in previous conversations i've had around what you could do here, i think the focus is on cost-cutting. a lot of that may have taken place under bob backish, that remains debatable, the former ceo who left a few weeks back, but what i have heard at least is the idea you can cut as much as 3 billion. that number is way too high in sgna, but that is what they would hope to target with things like the nielsen contract and going to paramount plus for the next 18 months and a lot of areas that they believe they can save money and future cbs, unclear over time. is there an opportunity there and any of the other cable networks under pressure and it's unclear what the overall value

would be. the library itself is seen as incredibly valuable, and that's the plan. they believe that they can create enormou normous amounts value. >> it's still crazy to me that the big idea is massive cost-cutting in an area where you will only survive by selling the library to netflix or somebody. so if the whole idea for this thing is massive cost-cutting, i don't know how promising that sounds. >> well, it is not without risk and i would also add, coming to a price agreement for a transaction that will close, i don't know how long it will be, sec has to sign off is also something a risk given the pressures and yept to make it seem that that's the only part of the plan and i'm sure there's

paramount lus they feel it adds ral and you sky bans dance and when you could pot issuely see adding a great deal of value. i do expect to get more detail once they get to the final, final time when they can actually sign a deal. >> may they soon. thank you for all of your reporting and bringing that to us today. we always appreciate it. david faber. >> coming up issue the etf bedz with the z is negative on the year over the concerns of a potential slowdown weighing on some of the travel names and we'll hear from the heads of hotel companies over what they're seeing in the travel space. we'll be right back.

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[both laughing] ♪ ♪ welcome back to "the exchange," everybody. i'm tyler math son with your cnbc news update at this hour. family of the sandy hook victims are asking a bankruptcy judge to liquidate alex jones' media company instead of letting him reorganize his business. families filed an emergency motion in court in houston as they seek to collect

$1.5 million that found him liable for claims that it never happened. the ringistry for white collar crime. the cfpb says the database is designed to deter corporate offenders who have broken consumer laws on the state, federal or local levels or subject to court orders. companies will have to register with the agency when caught violating those laws. and a group of world war ii veterans and their families arriving today in trance to take part in the events marking the 80th anniversary of d-day. the veterans are now 100 years old will join vets from other allied nations on the beaches of normandy where the june 6th commemoration. i've been there, kelly, if you haven't been, you should go. it is an absolutely transformative experience. >> and you kind of have to go while these people are still around to talk about it.

>> best if you can. >> tyler matheson, see you soon. >> hotel stocks are not immune to today's sell-off. you can see them in the red here as concerns are interest the summer travel season and here's what the ceos of marriott, hilton, loews and intercontinental hotels all told cnbc about the state of the industry this morning. >> for us inflation is a bit of a double-edged sword. hotel rates are inflation and through the recovery the pricing power we've seen has been pretty remarkable. the flip side of that is as consumers feel pressured by the impacts of inflation they get a little more cautious in terms of their spending. >> the reality is it's a supply and demand thing, right? there's not a lot of new supply in hotels coming and there's a fair amount of demand and growing demand particularly in business travel and the economics are well. >> there is still demand out there. lodging is doing pretty well, but it depends on where you are in terms of your properties.

are you budget? are you mid-market, upper upscale luxury. >> you have a wave of retirees. they're wealthier and healthier than any other generation before them. the people over 60 in the u.s. have 70% of the wealth and that's the same in europe, china and japan and the return, they want to spend it and their motto is spend it or your kids will. >> the ceo of ihg there reminding us a familiar theme about the wealth of baby boomers and how they're upon hadding corporate america although marriott just barely. coming up, think you're are the smaer than a high schooler when it comes to the economy. steve liesman is the quiz master as you gear up for the final round. >> you and i have had a chance to speak to a lot of smart people over the years together, you will not believe how smart these kids are and you'll watch them compete in the advanced division of the national

economic challenge put on by the council for economic education. come back after the break and watch the best and the brightest compete to be the toecom ghchool minds in the country. d 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. ♪♪ ♪♪

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welcome back. it's kind of the economics version of the national spelling bee. more than 7600 u.s. high school students entered the national economics challenge in year, and now the last four teams are battling it out for the top spot. our own steve liesman is there. he is the quizmaster and he is standing by to kick off the advanced division national competition finals and we'll get to watch, if you want to play along live. steve, over to you. >> kelly, thanks so much for we are about to begin the council of economics competition for the adam smith division, and that's the advanced division. these guys took a.p. courses and all kinds stuff. high school students are instein

smart if he did economics. these are the teams left after the brutal series, we have mount herron, and philips exeter academy from new hampshire. a big round of applause. here we go. >> you guys are the winners as far, and only one takes home the top geek. thanks to the judges, dick, julie, nick, chris, thank you so much for being the judges for in thing. we reviewed the rules. we're ready to go? >> two thumb up. >> question one of the atom smith division. question one is what domestic open market monetary policy should a central bank pursue if it wants to strengthen the value of the domestic currency oat foreign exchange market? 20 seconds.

foreign exchange market? 20 seconds. n foreign exchange market? 20 seconds. t foreign exchange market? 20 seconds. h foreign exchange market? 20 seconds. e foreign exchange market? 20 seconds. >> and five seconds. time is up. hands down. boards up, please. okay. oh, yeah. sorry, my bad. sell bonds. >> contraction monetary policy. sell bonds. >> sell bonds. >> sell bonds, contraction monetary policy. >> the answer is sell bonds. all four are correct. >> kelly, i don't know if you got that at home, if you're -- >> we said tightening. i guess that counts. >> tightening, would you have taken tightening? no? tightening, sure we would. >> oh, yes! >> you had it right, kelly. we don't have a line for kelly

there on the scoreboard. >> plus one. >> here we go. question two. are you ready. it's one for everybody. here we go. question two. what is meant by an inverted yield curve? 20 seconds. okay. >> and five seconds. all right. put your pens down, boards up. answer. >> long-term yields are lower than short-term yields and this indicates a recession or recessionary gap. >> mount hebron? >> impending recession. >> yields decrease faster in the beginning of the short run. >> recessionary expectations or long-run yields are lower than short-run yields. >> just a moment to confer.

>> the judgeses have to confer on this. >> tricky, trick. >> this is a debate in the whole market right now, steve. >> i think that's right, kelly. these kids explain. long end short, the short the short end? i'm want sure which way to roll on that one. i put this one up because i thought it was an easy one and the judges are still conferring, ladies and gentlemen. >> maybe we can explain because -- >> it's one thing to describe what bond yields are doing. it's another to decide what we should conclude with that and most people seem to have started with the conclusions, first. >> i think what they're doing is reading the textbooks that say the inverted yield curve is a sign of recession except for this time around which we haven't had a chance to edit the textbooks yet for the craziness of the economy after the pandemic. you have an answer. >> we were looking for long-term interest rates or vice versa and we'll accept the recession answer. so mesa and philips will get the

correct answer. >> stick around for this next one, if you can. >> sorry. i'd like to -- >> we have a challenge, ladies and gentlemen. >> i'm sorry for interrupting. on our board it says short-run bonds have a greater yield. >> what's the top say? >> impending recession. impending recession and below bonds have greater yield. >> i did not see that. they also get it. >> they get another point. >> well done. >> this is not like the nba where you have a limited number of challenges. >> okay. let's go on. what are we on? >> question three now? >> i was trying to delay just long enough. >> let me just read the question, kelly and then you can ponder it. okay? >> question three, here we go. assuming that the non-institutional population of the country is 8 00 million, of this population there are 500

million working full time and they've given up looking for work. what is the labor force participation rate? >> i'm trying to divide 7 by 8. everybody, we'll check back in with steve and thank you for sneaking that in and we will watch the rest of the finals on the youtube channel if back on lunch" with the winning team once this final round is completed. this chip stock is up 12% year-to-date compared with nvidia 129% gain. our trader says it's poised to start eating nvidia's lunch as price wars loom. that name and two more to buy is next. things will go wrong for your customers. but your business can make it right, with watsonx assistant. ai that can help resolve problems by understanding your customer requests with 90 percent accuracy. let's create customer service in service of customers,

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exchange." tech, utilities and energy are top of the year's top performers while consumer discretionary is one of the biggest laggards. bringing us jeff kilburg, cnbc contributor. are you smarter than a high school economic student, jeff? >> i don't know, kelly. those cats were pretty sharp out there. proud of them. it was great to see. >> let's kick things off with tech and semis in particular. the smh is outperforming the s&p by a cool 28%. your buy in this category is amd. we mentioned it, our mystery

chart into the break. shares are up 13% year-to-date and they just announced their next gen a.i. chip. why do you like it? >> it's borderline blasphemy. look at the pricing wars about to happen. you look at the top-of-the-line chip, it sells for $18,000. nvidia's favorite chip sells for $40,000. as we see capital expenditure by all these companies come into play in q3 and q4, they'll consider going to a lower cost. intel is down about 40% year-to-date. i want to look at amd because i think there's a dispersion, such a dislocation. today we're seeing nvidia up 40%. amd down 3%. this is a chance to buy amd and a reversion to the mean, kelly, because they will have to have some price sensitivity as people continue to spend on a.i. >> it's a big debate. you go with nvidia, do you turn to, as you are turning to amd in

the semi space. let's turn to utilities where duke energy has been an underperformer of the etf year-to-date and doesn't have a single sell rating on the street. why do you like this name? >> duke is just a great utility we've owned for a long time. 4% yield. to your point, it's a laggard. no one would probably think utilities year-to-date is the best performing sector on the s&p 500. so, b boring is sexy. all the stocks i'm trying to buy today are all in the red. that's the best part about this. there is a bit of a discount here. i love buying laggards. i love owning blue chip names like a duke energy. >> let's hop from that into the energy space. a name we used to talk about all the time and rarely get to mention these days, exxon op it's outperforming the energy sector this year by about six points. as consolidation continues, reports nearing they're looking

to sell off north sea assets. why is exxon your favorite here? >> if you look at exxon and chevron, the two biggest names in the space. when you see chevron, half the size of exxon, i want to go with the biggest name. look at the metric between exxon and chevron, year-to-date, one year, three year, five year. when you think about blue chip names in energy, i know it's down today, but this is the second leading sector. i think energy will continue to prevail. not just because of geopolitical tensions, it's just the fact we continue to need energy. exxon i prefer over chevron, and despite the fact it fell from its 50-day moving average, i think it reclaims that 50-day moving average and exxon has the ability to outperform for the rest of the year. >> let's turn to the worst sector so far this year, consumer discretionary. one much the underperformers is starbucks down 15%. slumping sales, just a tough go generally. ment so people are actually now

getting into this stock. i thought i just saw that last hour with judge. >> yes s, belski. >> yes, thank you. you're taking the other side of this trade, why? >> i think he's premature. this name is broken on the chart. it's completely crashed 50-day and 200-day. step back for a second and talk about the consumer. we're seeing a little weakening in the consumer, sticky inflation. what is going to be cut from consumer spending? it's the mocha, latte $8 whatever you drink there, whatever people drink there. i think that gets cut first. i think you'll see people continue to walk away from starbucks. that will hurt them short term. there is value. i understand discount. it's not going away. i think you can observe this a lot cheaper. if you own this for the last three or four years, it's gg gone nowhere but down. you want to walk away as consumers maybe shy away. >> a bell/bear debate. jeff, thanks so much. we'll see you again. appreciate it. jeff kilburg. that's it for "the exchange."

we'll see you on "power lunch" with tyler mathisen. ♪ well i was raised by careful hands ♪ ♪ yeah, they made me who i am ♪ ♪ so i'm off to see... ♪ we invent them. we design them. we build them. and one day, we have to let them soar. ♪ i'm always coming home ♪

energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. energy fuels. alongside kelly evans, i'm tyler mathisen. the markets are split. dow starting june with a decline of 300 points. the nasdaq with a little, little, and i do mean little gain, getting a boost from nvidia up more than 3% after