tech. >> joe snt.? >> xlg, the best trade on the market. swe >> we'll track the last hour of trades. still in the green, but it's a nasdaq story as the mega cap stories continue to rally. we'll see where we head in the final stretch. "the exchange" is now. ♪ ♪ >> thank you very much, scott. welcome to "the exchange." i'm kelly evans. here's what's ahead. the synchronized global rate cuts seem to be starting. canada's central rate lowering rates today. the ecb expected to do the same tomorrow. and will the fed end up quickly following suit after the jobs report or will high inflation keep powell on the sidelines? another day, another new ai chip, from a qualcomm backed startup. semis are dominating and one

stock picker says there's still room to run. plus, we'll talk to the ceos of travel and leisure and sweet green about the changes they're seeing as america continues to work from anywhere. but dom chu has what's in store with the markets. >> we are working from here. let's talk about the markets, decently in the green. at session highs o just about for the broader s&p 500 which is up 42 points. roughly three quarters of 1%. just about flat on the session for the dow. and the nasdaq composite, the tech heavier trade with chips and everything else, but about 1.5%, that's 255 points for the nasdaq composite, up to 17,113. so that big bounceback is happening within that tech trade. there's also another bounce anning within crypto currencies. bitcoin prices are back above the $71,000 mark.

on march 14th, we hit around $73,797 back on that date. so we're just about 3% or so from those record high levels. but we've been in this consolidation phase for this entire year, we'll see if there's a breakout happening or if it goes back down. bitcoin, $71,329. and check out what's happening in the stock market with regard to this particular name. it's not going away, it's gamestop, up 12.5%, moving towards the highs of the session. so that mean stock trade is in effect, still alive. we'll see if this has momentum. but on an intraday basis, we are seeing a move toward near the highs on this session. kell, back over to you.

steve has more. >> kelly, by one measure, the fed is potentially late here. a little known inflation index that allows you to compare european, u.s., other international inflation indexes, europe and the u.s. are in the same place. the hicb is the harmonized index of prices, it shows that as of march, the u.s. and european inflation were the same, even while u.s. growth has been markedly stronger. ian shepherd tells me -- >> he said the fed has cut inflation before inflation

peaks. 22 months in 1971. and sis months in 2001. in the fed cuts in september, it will have done so 31 months after peak inflation. now, there are many who say the fed shouldn't use this, but housing inflations we do use lag market prices, so the fed could be late to the cutting party because of housing. we had some softer data this morning, a little less soft in the afternoon. any way, what happened is with this morning's report, markets have somewhat raised the probabilities of rate cuts this year. you can see there approaching 66% for the september contract. but the final answer of who was early and who was late, that's going to be known. if the early starter can avoid a rekindling of inflation and the late starter avoids recession. >> steve, stick around. my next guest says the ecb cut is the right move and expects

their first cut to come in july. let's bring in luke tillie, chief economist at wilmington trust. welcome, luke. >> thanks for having me on, kelly. >> one of the debates going around, luke, is these things tend to come in bunches and come all at once. so whoever in the world starts cutting -- canada started arguing, no, we might have cut, but not to say the u.s. is following suit. but history suggests typically these all happen together and the fed would be next. is that your thought here? >> i don't think there's any reason we should expect central banks to move together in principle. they should be responding to their own economies. that said, there's a lot of global factors that lead inflation in different countries to move at the same time. the ecb is doing the right thing, because their economy is a little on the weaker side, they don't have anything driving inflation higher. they've got some risks there. so a stepdown here is right. on the fed side, think need to follow suit pretty soon. not because of anything that the ecb is doing, but inflation is

running pretty low. even if it's a stubbornly high on month-over month basis, the main thing about inflation, it is highly concentrated in shelter. if you look at the cpi x shelter, it's been running below the fed's target for 12 months now, and shelter is coming down. it lagged in home prices and rents, and we expect it to keep coming down. so that's why we expect that first rate hike july 31st. >> i want to turn to the pair of isms and say that summarizes the u.s. economy where manufacturing has been in recession for two years, and the service sector is holding in there, and it had price pressures not specific to real estate. so if i were the fed, i would say that broader part of the economy seems to be holding up pretty well. >> all right. i'll see your ism services headline index and i'll call you with the services and price

index, which was down. manufacturing is one of the sectors you would expect to be most affected by inflation. so you see that contracting. i think we're moving into a second phase here of inflation declines, and that's this. the first part was all supply side. now i believe we're starting to see those industries and the broader economy start to be weighed down by these higher interest rate cuts. i think it may be time for the ted to think about cutting rates to ensure the soft landing. i will speak against myself for one second, kelly. i didn't bring the chart on this. i want to see if you remember, what was one time when the ecb went quicker than the fed? remember that time? >> the recent one. recently -- wait, wait, are you talking about the hike no, not the financial crisis hike. >> i should. put you on the spot on national tv like this. but if you remember the great financial crisis -- >> yeah.

>> they decided the best thing to do to counter the great financial crisis was to raise rates. that was not the smartest move. so you may be wary of the ecb going a little too early with something. >> in that case, this gets back to luke's point. everyone is running their own monastery policy, but in reality, we're a global economy and the u.s. is the lion's share. luke, why do you think it is that other economies see less pricing pressure than we have? and we're splitting hairs here. it's still way above the 50 level that indicates contraction. so there's this confusion about what's happening with inflation, and whether or not it's in the rear-view mirror. why do you think the u.s. -- should we expect it to be different? why are other places experiencing less inflation? >> the u.s. had higher inflation because we had higher stimulus during the pandemic. it was 25% of gdp, and that raised overall inflation a

little higher than some other countries. but when we come -- when it comes down to it here, we've seen the waning impacts of that. consumer spending is up 2.5%, 3% over the past year. that's pretty much the same growth in a normal economy. same as in 2018, 219, and really businesses are dealing with the amount of orders that they're getting just fine. there's no real pressure on prices, on the demand side. as steve was saying, we have the supply side help and we're seeing a lot of weakness on the labor market side. not in the total non-farm payrolls, but there's a lot of permanent job loss, up about 333,000 people the last year, and we've seen job openings cut by 33% from the peak. and we just see a lot of weakness on the labor market there. i think that's going to play through that decision, as well. >> what about the idea that -- well, let me ask it a little

differently. there's more talk about the benchmark revisions going around, that the -- there's been many more bankruptcies and small businesses going out of business that are captured in the data. so i don't think we'll find out until august, it might not affect payrolls this friday, but others are saying the employment side of the economy is weaker than a lot of the stats are capturing. this is the problem. sometimes we just don't know the real data for many months' time. >> yeah, the original -- the first release of the qc data, that perfect count is going to show roughly 80,000 jobs per month of a downward revision from march of last year through december. it's going to be brought down. it's quit a different labor market, and the lags before and after the first rate cuts, powell and the fed are saying if we see unexpected weakness in the labor market. the labor market lags. the economy usually turns first and the labor market is six to nine months later.

they need to be ahead of that, not waiting to see it happen. >> steve? >> i just feel like what is the reason why the fed is not cutting rates? we have had so much progress on inflation, kelly. it's really come down quite a bit. and the reason is because of this credibility issue that the fed does not want to come off of its 2% target and begin cutting rates. admittedly, it said it would cut rates before it got to 2%, but we're like 0.6, 0.7 off of the 2%, and i would hate to see the risk of a recession when the fed is doing that to maintain its credibility. i think the fed would lose a lot of credibility if it essentially snatched defeat out of the jaws of victory and lost this soft landing. >> all right. i'm going to leave it on that powerful note. thank you both. appreciate your time today. now, bond yields initially spiked on that stronger ism services data this morning, but the ten-year then reversed back

below 4.3%. it's supporting markets to some extent, the nasdaq in particular, and my next guest sees plenty of opportunity in tech and in the industrials that power it. let's bring in the senior portfolio manager at all spring global investment. i like the way you framed that, so plenty of people would be happy with that second order trade. >> yes. well, we think there's still a lot of strength in the economy in technology, in industrials that particularly are tied to the secular strengths, such as data centers, automation, making the grid more safe. those are the areas of even industrial we're seeing a lot of strength. so we think the economy is going to do -- at least the market will be surprisingly well this year. >> you know, there's a saying, i'm thinking about the discussion we just had in steve

and luke's case for why the fed should cut rates here, and the line for michael hartman at b of a sticks in my head when he says, history suggests you should sell the first cut. do you think that will turn out to be the case this time again, that investors should sell the first rate cut, that the market could drop anywhere from 20% to 25% in the subsequent months? >> i think that's very hard to say. one thing we have learned over the last couple of years, you can't look at the history books to tell you how the market will react in previous cycles. i think that's another example. the market here has raised the head of the fed making the decision when you have the ten-year down at a 2. -- or 4.3%, that tells you the market is expecting a rate cut and think it's appropriate and the fed should react because they look at the market for signals and they're getting signals it's time to cut rates. >> you're clearly in the cut rates camp.

three weeks ago everybody was talking about another hike. you get a soft pce report, and now we're back to the rate cut camp, except expectations are not out there for july. do you think they should do it next month? >> yes, i think they should. in a sense, it's not really going to matter as far as economic growth over the short or medium term. they ought to have a small window before it's time for the election where they traditionally have been very quiet, so they need to act in the next couple of months to be in a holding pattern for the last few months of the year. so they should. the market is saying they should. and we think that it won't cause inflation, and we don't think it will really cause any disruptions in the economy. it looks like it's the right thing to do. >> i'm sorry, i didn't mean to clip you there, but you wouldn't buy bonds. we've never talked about bonds together, but you always talk about stocks. i don't know if you would kind

of go that far in your line of thinking as to say the highs in yields are in. >> well, i personally think -- say the ten-year is more or less in a trading range of 4% to 4.5%. whether the fed keeps rates where they are or cuts rate, that's about the right rate. we have a huge amount of fed supply. inflation is a little above 2%. so i think there's a little money to be made in the high yield side, where yields are higher, maybe say 6%, 7%. but i would say basically i think the bond market in the medium quality, you're looking at a moderate return. equities are going to continue to outperform and be around that 10% growth for the year as we saw in the first quarter. >> not worried about a broader economic slowdown? >> it's hard to say when the fed is actively considering cutting rates and very sensitive to the economy. and when interest rates have come down on their own because the market has said we think rates should be lower. if you look at the economy, all

the sectors are looking in pretty good shape. yes, there are signs of a slowdown in labor and industries here and there. but bottom line, it looks as if we should chug along at 1.5%, more or less like the first quarter, 1.3%. maybe 1.5% to 2%. i think that's sufficient to keep the economy going, and also to mean that stocks, the s&p, nasdaq, should continue to be in double digit rates in return over the next year. >> fascinating. maybe we can muddle through, what steve and others suggested if the fed acts more quickly, perhaps we can keep this going. you do have companies, specific picks here, broadcom and others, is that where investors should be positioned versus just having broad exposure to the index and taking the ups and downs they may navigate in the months to come? >> you need to stick with the leaders in their sectors.

we've seen strong, big companies get stronger and stronger. although those companies have had great earnings growth, when you look at the smaller capitalization companies, they have more modest growth, reflecting a very low economic growth we have say in the first quarter, 1.3%. so that says that the investment themes are the same that sevrve last year, technologies and they play into those big things about power and data centers. on the health care side, we're a little more selective. we think although the sector is growing, you have to be picky about where you want to be. companies can still draw on that. >> margy, great to check in with you today. >> thank you. coming up, travel stocks are usually some of the hardest hit during a downturn, but the head of travel and leisure says their business model, oh, yes, is recession proof. he'll join us next to make his

case. shares of fast casual chain sweetgreen have tripled in six months and there are two trends driving that, automation and suburbanization. the ceo joins us later in the show. "the exchange" is back after this.

welcome back to "the exchange." sticky inflation keeping rates higher for longer, raising concerns about risks to the consumer. travel and leisure says inflation is a tailwind and the vacation ownership business model is recession proof. joining me on "the exchange" is mike brown, ceo of travel and leisure. we thank you for joining me. what do you think is going on with the economy? >> all we can do is look at how people are traveling the first half of this year and into the second half of this year. despite a lot of noise and talk about crosswinds that things are changing -- >> yeah. >> -- we're not seeing it. we've had a strong first quarter. bookings are up the latter half of the year and we're heading into the peak travel season of the month, which is the summertime. we'll see what happens after the summer, but all signs are that the consumer remains strong. there are some nuances in it >> what are those nuances? >> there's more spend at the

higher end, and there's starting to be pressure on the lower end. consumers react to that, because they still will go on vacation. they might drive to their destination instead of the long haul flight to get to europe. everyone was in europe last year. >> evidently. >> i think this year we'll see a lot more drive-to destinations up and down the oastlines. >> what has the impact of inflation been? thinking through conversations we just had, is that the bigger head wind for consumers, or sit job insecurity? which should the fed be tackling? that's been the wild card that makes this feel different. >> well, the inflation environment has stayed high for long. and although it helps our business, and i'll explain why in just a second, the reality is especially on the lower end consumer, the longer it goes, the more pressure that's out there. i think people are being creative on how to overcome those incremental inflation

costs. working from home, less child care cost, less commuting costs. but for us, in our business, the reason inflation is actually somewhat of a positive for us is seven out of eight consumers purchased their ownership ten years ago. so they're vacationing for 2015 with 2017 dollars. when a hotel has gone up 30% in a given year, our consumer is saying, i paid for mine ten years ago, so why wouldn't i go on vacation? we're in a really good spot, because we saw coming out of covid, people are definitely going to travel. it's just how. and our business model, inflation has not hurt us really much at all over the last three years. >> it makes the value proposition more compelling. >> it's about the value proposition. the interesting aspect, we always get to question, are the vacation rental businesses

threatening you? it's the opposite, because we were always trying to convince people it's better to stay in a condo versus a hotel. now, everyone agrees with families that it's better to have two bedrooms or a kitchen. >> a microwave to warm up the kid's milk. believe me, i hear you. timeshare still has this connotation to it. who is coming these days and saying, this is exactly what i want, and i should mention you have some interesting things going on. "sports illustrated," you're partnering near college campuses. what kind of experience is that? >> the average consumer that we have new purchasers, two out of three are gen x or millennials. the age keeps going down, the average new purchaser is 38 years old. so we're seeing these misconceptions about it's for my parents or grandparents. that's completely changed over the last five years. >> wow. >> as it relates to "sports

illustrated," we're very excited about being the macro trend in hospitality. people want experiences and they want to associate their accommodation with something they love. we also have margaritaville. who would have said hospitality was margaritaville ten years ago? now we're partnering with authentic brands and "sports illustrated" to put the world's most iconic name in sports next to college campuses and the first one will be tuscaloosa, alabama. >> even i've heard of it. so what's next then? the next few years as you think ahead and try to figure out there might be a slowdown, what happens with the election, but what do you think are the secular trends you feel comfortable putting capital to work and say thing is where the population is going to be? >> it's always a little dicey figuring out the timing of it all. we're heading into an election. the interest rate, i've heard your segments prior to coming on, and it's all -- are rates

going to be cut? you have to have the good business model. we have a great business model, and we're investing in our business or buying back shares. we have taken out of 25% of our share count. >> have you really? >> since we spun in 2018 and have over 4% dividend. >> do you continue with buybacks at this point or is -- i know with rates so high, it maybe makes the investment look a little less attractive, i don't know. >> it's a balancing between buying back shares or investing in the business. "sports illustrated" was investing in the business, so we put over $40, $50 million already to work. it's always a judgment call whether you think the long-term organic growth of these new brands like "sports illustrated" and i is the better allocation. we returned a lot of capital over the last four years because

our business generates over 50% free cash flow. >> you have a lot of different options. mike, thanks for joiningtous talk about it. coming up, softbank is the latest target of elliott management. we'll tell you what he's pushing for and what it could mean for softbank. as we head to break, take a quick look at crowdstrike, surging 10% today after better than expected results and strong guidance. shares are flirting with their best day since november as the cybertrade continues to behave wee ckft ts . 'rba aerhion "the exchange."

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welcome back to "the exchange." we're bregreen across the board. we're right on that marker now. in terms of some of the movers this hour, dollartree is considering the sale of family dollar. they closed more than 500 locations in q1 and plan to close 1,000 more in an attempt to turn around that business. they bought family dollar ten

years ago. but again, we'll see if dollar tree spins off family dollar after that purchase. tesla is trying to avoid its fourth straight quarterly decline. the shares are fractionally higher ahead of next week's meeting. baron capital chair ron baron rev revealed musk's pay package. >> i think that he earned it, and he deserves it and should be paid it. we said as tesla as a company, elon, if you perform, this is what you're going to get. how are you going to renege on that, especially when all the shareholders approved it. >> it would be the largest pay package for a ceo in corporate america. it will come down to next thursday. now over to tyler mathisen for a you news update. >> thank you very much. manhattan prosecutors are urging to keep donald trump under a gag

order in that hush money case, at leastuntil he's sentenced in july. they told the judge they oppose the defense request to lift the order in light of trump's felony convictions. the gag order bars trump from comments about witnesses, jurors and others related to the case but not the judge or the prosecutor. new york city's congestion pricing toll plan has been shelved. the state's governor announced the indefinite pause of the program today saying it would risk too many unintended consequences, including potentially slowing down the city's economic recovery from the covid pandemic. the first of its kind toll is due to start at the end oh of the month and would have charged drivers $15 or more to enter manhattan south of 60th street. muhammad ali's childhood home is up for sale. the louisville, kentucky home and two neighboring properties are on the market for $1.5 million. this according to the listing. the home had previously served as a museum of ali's early life

and humanitarian efforts. kelly, back to you. >> tyler, thank you very much. coming up, not many stocks are outperforming nvidia since january. but sweetgreen is, up 187% this year. next, we'll speak with the ceo about where they're seeing growth, how the consumer is holding up and what is behind the push behind robot made salads and bowl. and cnbc is celebrating pride month. >> with the majority of our leadership team identifying as lbgtq, we believe it makes us stronger as a company, fosters innovation and allows our company culture to thrive. i'm so honored to be a leader in the community and hope we inspire others to create opportunities and environments where the queer community can be embraced and celebrated.

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welcome back to "the exchange." despite lingering inflation, restaurant sales are expected to hit a record this year, maybe

because of it. according to the national restaurant association, the industry could bring in $1.1 trillion, up more than 5% from last year, and one fast casual chain riding that is sweetgreen, outperforming nvidia. joining me from the william blair growth conference in chicago is the ceo of sweetgreen. great to have you here and to be acquainted. welcome. >> thanks for having me. >> you guys have been on a wild ride. i went back down memory lane. you ipo'd at the top of the nasdaq market in 2021. it was amazing timing back then. to your credit, the shares are above that level. we can't say the same for a lot of companies who ipo'd back then. what do you think accounts for that turn around in investor sentiment lately? >> we've been really focused on executing the fundamentals as it relates to how we treat each and every single guest, just

providing with fast, friendly service. i think there's a few other things driving it. one is a lot of the things from the menu innovation perspective. last october, we offered protein pl plates, which has really broadened or consumer and helped us broaden the white space opportunity in terms of places we can go, and helped us a lot with our dinner business. and just recently, about a month ago, we launched grass fed steak, and we've had a tremendous response to it. people are excited about bring thing healthier protein option to the sweetgreen offering. and starting to shift sweetgreen from being a place for lurnlg and salad to being a place for lunch and dinner and broadening that consumer. so we have a push with more profitability, and just delivering on our customer promise. >> it sounds delicious. i've never eaten at a

sweetgreen, but i have -- >> you have to try it. >> i'm sure there's one in new jersey, i don't know. but thinking about your price point, what sit roughly? so mcdonald's, we were talking a ten-piece chicken mcnugget deal is $9.90. i have to mention i can get something decent at sweetgreen. what is your price point for something that is much fresher, healthier, better quality? >> so our price points are between $13 and $16. we do price a little differently in different markets. but one thing that we have seen in the past four years, of course, the industry has seen a lot of inflation. but we have taken less price than the industry, especially compared to fast food. on a relative basis, sweetgreen offers a better value today than it really ever has, even though we'll all gotten more expensive. a report came out that sweetgreen is only about $2.50

average more what people pay for fast food. especially as we focus on dinner, $15 may be a people your for lunch, but when you get a deal with a hardy fresh-cooked protein for around $17, that's a good value. i think in this time where consumers are watching where they spend, the price value that we offer is really resonating with consumers. >> is automation a real thing you're working on or more of an exploration and sort of pondering -- is it way down the road or something that we can be already experiencing if we go to a restaurant? >> so automation is something we've been working on for a lot of years. the reason we think it's important is it's a way for us to scale our mission of connecting people to real food in a way that is better for our customers, faster, more consistent, better for our team members, a more enjoyable place to work and eventually something that we can use to really just

create a lot of chance to offer our amazing high quality food at great prices. so almost one year ago, we opened our first location featuring automation. it opened here where i'm at today in chicago in naperville. and then six months ago, we opened one in huntington beach. our customers are loving it. they love the speed, the accuracy, the quality coming out of it. our team members love it. our turnover is significantly lower in those restaurants. and we have seen -- what we said is we expect seven points of margin expansion at the store level for those restaurants. >> seven points, like full percentage points? >> seven full percentage points. in q1, the two infinite kitchen stores, we saw about ten points of leverage. so it's a huge opportunity for us. right now, we're in the process of rolling this out to more locations. so we're opening starting this summer, we will open seven new

restaurants featuring the infinite kitchen. next year, that pace will continue to accelerate. we believe automation is the next platform shift in food. >> i kind of like -- can you franchise? i run a sweetgreen operation? i would like 28% profits, that sounds good. >> today, it's all company owned. but one day we may explore other sorts of opportunities. but we like to control the end-to-end experience so we can control the quality of the experience in everything we do. >> jonathan, thank you for joining us today. >> thank you so much for having me. still to come, shares of softbank are higher today after activist investor elliott -- we'll dive into that next. ♪ ♪ ♪ ♪ the biggest ideas inspire new ones.

30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪

it's deja vu for softbank. elliott management building another stake in the firm after

pushing for changes four years ago. deidre bosa is digging into the story for today's tech check. deidre? >> kelly, let me first tell you why this is happening. soft bank's market value is 90% is worth some $123 billion, more than the entire market cap in tokyo, of $85 billion. then you have the vision funds, which are back on the block, t-mobile, it's net asset value far surpasses what investors think the company is worth. according to a source familiar, elliott has built a position worth more than $2 billion is pushing for softbank to do a $15 billion buyback as a way to narrow that back by boosting softbank share price and acting as a sign of confidence. whether they are willing to buy into that new strategy, more than an open question. over the last few years, he's been building up his war chest to go on the offense and pursue

investments in ai. arm a big part of that war chest. according to this slide, he's looking past even agi to asi, that's artificial super intelligence. something you don't even hear openai or google talk about these days. plus this time around, elliott argued for change. and softbank has a larger public position than different companies which can be difficult to sell without flooding the market and driving down the stock price. the stock is up some 50% this year. so we'll see if he's willing to buy into this idea that elliott is pushing for. >> normally you might catch it at a low ebb, but it's interesting it's coming now. why do you think that? >> i think because there's this huge gap between that net asset value and the share price or the market valuation. this has always kind of been a

problem with softbank. i don't know, problem or issue. masayoshi does not love it. when you go to the website, he loves to talk about how softback is undervalued. it does bother him, but he has a bigger aim, which is to lead the generative ai charge, and you need lots and lots of money to do that. elliott, more short term focused. this is more of a trade with them. they want to make money and see that stock price get higher. >> that tension will be interesting to follow. deidre, thank you very much. coming up, 119%, that's how much medical care prices have increased since 2019. compared with just 85% for all consumer goods and services. we'll talk about what the government is trying to do now and what it means for your wallet and investments, next.

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welcome back to "the exchange." the rising healthcare costs couching the attention the lawmakers. regulators are looking to curb consolidation as private equity as invested billions. those efforts are working, perhaps, in part. there's been a drop in add-on deals. is it all too little too late for patients? joining us is the ceo of anomaly. they use ai to help simplify patients. why do you feel differently? >> i feel optimism. we finally have armaments that help us pierce this opaque veil of our healthcare system. for those of us just out there liven our lives think about care, this is about a grocery store, only your providers give you a list of what to shop for, and then you go to check out and

your insurance companies checks you out, but they don't tell what it costs. a month later, you get a bill, and sometimes milk is $2 and sometimes $30,000. >> perfectly said. and it's about the most important thing in your life, your family's health, and you have to make these decisions would you tell anything information. >> and if you're prescribed a drug, you're not thinking costs, what's wrong with me? i feel bad, on you i want to do this great thing, which is have a baby, which my wife and i just did. you want to-- >> yet you know so much about the industry. how were you doing ai before the gen generatiive stuff? >> the way we think about it is, part of what drives how opaque is the massive amount of data

that's in the system. we have the only system in the world where a clinician has to justified to a payer, whether that's an insurance company or government, what they did. they use codes to do it. there's about 4.5 trillion combinations of codes -- >> codes, they're -- and the consumer, they say give us the codes, and you're trying to type it in. it's crazy! do you generally think -- do you do for consumers? what is your product and how could it help us out of situation? >> right now we work on behalf of providers in health systems. we hook up to their data, and see the claims they're sending out. we do transparency is how payers are interpreting the claims. they have to send information back to the provider saying we're going to pay it or deny it. we're taking in all that data all the time to build up muscle memory to understand, so when

you schedule your procedure, we can tell you, you have xyv -- z insure are, and they're actually cover this thing you'll have today, where right now, yes, you have this plan, but we can't guarantee until they pay for it though their going to -- >> and you already paid for the service, now you don't know if they're going to cover it. you're sending paper forms to around trait this, and third-party layers on top of that. >> what is the value proposition for them to have you involved at all? what is their incentive to allow you to come into this process? >> there's really two. one, through this process, they think they ought to be paid x, and they end up getting paid y. so we help them right-size. so the other is administrative costs. you talk about pbms, pbm firms, i look at those different segment, we want to drive

transparency, but they're cogs in a big wheel, and the wheel itself is broken. health care itself is $300 billion in just transaction. just all of this data floi flowing back and forth. >> so, is there an app or something that i, as a consumer can access and download, or do i have to wait for my providers to be partnering with you. >> right notice. business to business. the idea is if the provider can get it right with our help up front, you never see any of the downstream, because it's done right. that's the goal, but stay tuned, coming soon. >> what do you think the best version of health care in five years. what is feasible. >> i would love to see a health system without claims. >> so more purely transactional, they say you need this procedure, basically your

insurance plan says they're going to cover it, i don't know if they say it as this is how much it costs, but to use the grocery store analogy, what, it's here -- >> here's milk and the price and it will be covered. >> fascinating. i wish you well. >> thank you. >> on behalf of all of us, that this works successfully. mike, thank you for joining us to talk about it. that does it for "the exchange." up next on "power lunch" we'll talk to ernie garcia, ceo of carvana, one of the great revival stories. tyler mathisen is getting ready for that, and i'll join him on the other side of this break.

good afternoon. welcome to "power lunch." stocks are higher across the board, the dow up 50 points, but the nasdaq up more than 1.35%, hitting a new record high. so far this year, the dow is up just 2%, but the nasdaq higher by 14%. driving the nasdaq higher today and this year is what else? nvidia hitting a record high of its own, above $1200 a share, and the market cap, are you ready for this