from pep in their step to shine in their coats, when people switch their dog's food to the farmer's dog, the effects can seem like magic. but there's no magic involved. (dog bark) it's just smarter, healthier pet food. it's amazing what real food can do. ♪ welcome, everybody, to "power lunch." for, what is it, wednesday. is it wednesday? >> no, it's tuesday. >> it's tuesday. i'm getting ahead of myself. melissa lee is here. welcome, melissa. good to have you with us. i'm tyler mathisen. the boeing ceo testifying before congress with many expecting the airline executive to face a thrashing from lawmakers. more on that in a moment. plus, doing it elfing right. bullish on elf beauty despite signs of an overall weaker consumer. that's further ahead. and first, a check on the

market. three major indexes are up ever so slightly, as you see right there. or as i can't see right there. trust me, they're up a little bit. the industrials, nasdaq and the s&p 500. treasuries moving on a back of the retail data as well today. and check out the semis, the group overall higher adding to recent gains. micron leading the way. we have much more on those names later in the show. check out shares of la-z-boy up 18%, releasing strong quarterly results. a lot of strong la-z-boys out there. >> sure are. boeing, the ceo testifying right now. phil lebeau has been monitoring this. phil? >> it has not begun yet. but dave calhoun had just walked into the hearing room. we expect the senators to come in shortly. this is what we usually see at one of these hearings where the witness comes in and then they wait for the senators. this was dave calhoun about 45 minutes ago. he briefly stopped and talked with us in the hallway on capitol hill. said he is here to answer the

questions truthfully and honestly and in full transparency. and when he just walked into this room, as you would expect, as we saw when dennis muilenburg, the former boeing ceo was here for the 737 max hearings back in 2019, there are families of the victims from the 737 crashes who are in attendance with placards showing the faces of some of the victims. dave calhoun walked in. now i'm in a booth up above the hearing. i can't tell exactly what he said but i'm pretty sure he acknowledged them and said i'm deeply, deeply sorry. he said a few more things and then he sat down. there you see some of those placards. those are relatives of some of the victims from the 737 crashes, the two that really are at the very beginning of everything that we've seen boeing go through over the last six years. there's dave calhoun waiting for the hearing to begin. we expect it to last two to two and a half hours.

as we talked about all day long, he is going to get roasted. no doubt about it. he will get skewered by members of congress who believe that boeing has not been forthright in the changes that need to be made. has not been forthright in addressing some of these complaints that have come out from whistleblowers. we'll hear from a new whistle blowing at the beginning of today or the complaints from that whistleblower. richard blumenthal, he will be bringing up those whistleblower complaints. we expect that all the senators to say basically the same thing over and over again. dave calhoun, you have promised to make changes. you're not making them fast enough. you need to be held accountable. so we'll see how this hearing goes. again, we expect it to be a long and brutal hearing for dave calhoun. guys, back to you. >> phil, hasn't the faa taken steps to bring the company's production pace and standards of practice up to a higher

standard? >> yes. >> so is this -- basically my question is, are these hearings substantive or theater? >> there's a lot of theater here. primarily theater. now, having said that, if you talk with richard blumenthal, we had him on squawk box this morning, look, the american public needs to tell boeing you're not doing enough. you're not moving fast enough. that's why the senators are holding this hearing. but in terms of changes at boeing, the faa has put more inspectors in place. it has, at least initially, signed off on procedural changes for boeing in terms of improving quality controls, including safety measures. there you see senator blumenthal about to begin. so, yes, tyler. to answer your question, there are a lot of changes that have already been put in place and not a whole lot that comes out of this hearing today is likely to change the trajectory of boeing immediately. and if you're an investor, none of this will really matter. what you really are focussed on if you're an investor, is a,

when is a new ceo going to be named. what's that new management going to do in terms of improving quality and when does boeing start to show progress towards instituting the changes that the faa said, yeah, at least for now, these are the right steps. w phil, thank you very much. phil lebeau covering the story from washington. i'm sure we'll check in with phil as the testimony gets under way. let's bring in a boeing shareholder now for more on what's at stake and the impact on the stock. tony bankroft is funds manager. tony, welcome back. good to have you with us. what about senator blumenthal says that is that boeing isn't doing enough, fast enough, to satisfy both the american public and the flying public? >> thanks, tyler. great to be back. you know, i think, you know, boeing is in a tough spot. i think boeing is there today to show their commitment to transparency. they're changing the culture.

they implemented a lot of changes that have been approved by if faa. and they're doing it. but i think just like phil said, i think that essentially boeing needs to do -- >> do you know of anything they could be doing faster or better? again, if a senator can't point to something specific and just say, you're not doing it fast enough, i don't know how helpful that is. >> i'm pretty sure what happened on january 5th, the -- with those bolts, that's never going to happen again on a boeing aircraft. i'm pretty sure that's a guarantee. >> that is where the door imploded or blew out. >> i'm sure. but a lot of investors and the flying public are thinking but something else could happen because of the culture from boeing. from a boeing shareholder stand point, what is the case? it's a due oply, just that the united states has the buy defense from boeing? i mean, what -- because we have seen things just unfold time and time -- another thing. another thing. another thing.

a self-inflicted wound. it doesn't seem to relent. >> yeah. i think on the commercial side, after covid there was a lot of turnover on employment. you've got a lot of new people learning how to build a very complex and multiple -- a lot of engineering that is involved in it. and so, i think boeing is dealing with that right now in a tight labor environment and obviously, you know, the supply chain as well is constricted. but i think long-term secular tail winds of how many -- almost 40,000 aircraft that need to be building over the next 20 years and rising middle class. i think those tail winds are essentially -- that thesis has not changed. boeing will be a big participant in building those planes. >> mr. calhoun, whatever you

think of him, it seems to me that he has tried to be transparent. he's tried to be responsive. he is leaving at the end of the year. what, if anything, are you hearing about people who might be on the short list to succeed him? are they leaning more toward an internal candidate or an external candidate, do you know? >> i think boeing's wish list is they want someone who can come in and change -- work on the culture, hearts and minds of the employees and get boeing sort of going the right direction. i think they want someone with a technical background, some type of engineering, someone who can work in a plant and make operations more efficient. and you know, there needs to be someone who can come in and usher the next generation of plane. there will be a new aircraft that eventually that's going to be replacing the 737 and they need someone who has that kind of -- that mindset and outlook. >> is that the catalyst that you're waiting for? >> i think the big catalyst is going to be getting obviously -- you need to get a new ceo.

they've already said that's going to happen. you have to get spirit -- the spirit deal happen which they said is going to happen. and you've got to get the 737 production rate increased. you have to get the faa to approve that. and i don't think you're going to probably see much going on until that's completed. >> is there nowhere else in aerospace where you find more attractive than boeing? it's your largest position. have you added to it in the past year? -- >> yeah. for sure. i just bought more. listen, these are opportunities. and i think, you know, over the long-term, boeing is going to -- they'll get their production rates back up to the 50 rate number that they have been talking about. and i don't know -- >> is that like a year out? >> probably going to be in the 25, 26 time frame. >> how about larry of koe geo space? >> i think he formally turned it down. i don't think boeing will get him. >> wasn't way off.

i didn't say soto. >> etf owns a lot of aerospace as well. we're large holders there as well. >> tony, thank you. always good to see you. thank you for coming by. appreciate it. coming up, more on markets and the retail sales data. as we head to break, the quick power check on the positive side of s&p, hue let packard lifted. lennar lower. some analysts pointing to guidance as a problem. that's your power check. we'll be right back.

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♪ welcome back to "power lunch." stocks a little changes investors try to shake off weak retail sales data. our next guest says the macro data during the earnings lull lacks the umph to get markets worried about a recession. let's bring in doug mccay. doug, great to have you with us. >> thanks for having me. >> sounds like you aren't really

too worried. and you're just informsing in the mag seven seems to be the trade to be in. the trade you have to be in if you want to match your indexes, right? >> yeah. the macro data isn't working. but i think in the last few years the economy just hasn't followed traditional play book. so, first of all, the data out this morning is month to month. very noisy, but you also have to consider companies like costco and chip potle, they're not takg trade down. costco said they didn't experience any -- didn't see any weakness across any of the income cohort. yes, right now during the earnings lull and 30 years of doing this, i definitely noticed a rhythm where earnings data is slow, companies turn to other things that may not be any more

reliable but tend to sound a lot louder than they really are. >> you talked about two companies, though, specifically in this sort of momentum trade category. if you take a look at chipotle going into the split here, we're seeing a trade up sharply and on very heavy volume relative to 30-day average volume, doug. same thing with costco. it's been just a winner in addition to the mag seven. you look at the macro data pair it with what you're seeing in these positions you have particularly in the mag seven, at what point do you get concerned that nnvidia, may not be an implosion or anything like that, you see sales to slow, you can see what you saw when we saw cisco go through the build-out of the internet where sales growth just slowed down. and we saw huge draw-downs in the stock, while it went higher, we saw significant draw-downs in certain years. >> well, that's definitely a risk. and i went -- at one time we were one of the largest

shareholders of cisco. i still have burns on my finger from that. we experienced some good times as well. my son pointed this out that a lot of people are managing a lot of money went through similar experiences are my age now running that money. hopefully we don't make the same mistakes. nvidia, we have a philosophy where we prune names as they've gained. so every investor needs to consider the risks that they're taking. you need to be prudent, but this is a once-in-a-lifetime opportunity just as the birth of the internet was and cisco. and so, artificial intelligence, the advent of c 3 po, r 2-d 2 coming alive here is something that has legs structurally, clearly you're absolutely right. you have to wash inventory levels and cash flows and be nimble and quick which benefits uz as a smaller manager, i believe. >> i think back, doug, on the history of companies that win

that coveted title of the most valuable company in the world, a lot of them lose that title pretty quickly. and they can go into the woods for a long time. and, okay, another example, tesla, which was part of the, quote, magnificent seven, is not any more. >> right. yeah. i mean, i compared the notes that i sent you. these companies get to trillion dollar valuation, they're almost stars in terms of the gravitational planet. the reason for that is if you don't own a name and you're judged against indexes like me, 5, 6% of the index, 10% is with nvidia or a microsoft or an apple, you're making a big bet that star will become a black hole and implode. blackberry, nothing. so you have to be weary. you have to be nimble. but i still think the bigger

risk in the last five years, people have been gnashing their teeth over the mag seven for the last couple years and just continue to put up the earnings. nvidia is a little different case, i will admit, because it's come out of the blue just in the last year. but again, the opportunity there is pretty large. they're one of the few companies that's actually monetizing that today. >> when you say you have to be nimble, what are you looking for, doug? what will be the first cracks that you're looking for? i imagine that you along with many other pms out there, many other fas are under pressure to be in this these stocks. you have to be in these stocks. and that concentration will push the s&p 500 more quickly to 6,000 or some other lofty level, but it will also create this element where when there's a downside, downdraft, that's going to be swift. >> well, and i agree. that's why we do have a pruning method where we just prune. we know we're not going to get out exact peak. i wish i could say that was the

case. but you pay yourself a dividend and take some gains along the way. and then you try to be prudent and about a broad set of companies that, you know, behave differently. you're right. it's a siren's song. and you don't want -- even though it's tempting to put it all in and increasingly narrow areas, go after broadcom that reported last week. it's putting in close to a trillion dollars, you have to be careful and make sure you're not getting too exposed to one area. yeah, cisco, the game was you bought pnc sierra, all these channel chain stocks and you participated that way. i will say one thing that's different, what you could look at is, you know, back then there was a hold.com group of companies that were built off of. and a whole bunch of telecom carriers, isps that were started out of the blue. and so one thing i'm watching is, how much funding is nvidia doing of customers that could end up having too much inventory and need to sell all of a

sudden. that's one area that i think you have to watch for the rhymes. so far we're not seeing it. we knew there was -- >> can i squeeze in one quick final question, quickly. >> yeah. >> good to have companies that perform differently in your portfolio. give me an example of one. in your portfolio. >> well, companies like today dexcom. it's not near all its all-time highs. it's a healthcare company, does continuous glucose monitors. healthcare is not typically correlated to the rest of the market. so i would look there. but dexcom, yeah. >> doug, great. appreciate it. doug mccay. >> okay. thanks, guys. >> you too. after the break, the presidential fundraising race kicking into high gear. trump being fueled by his verdict rather than hindered. poised to outraise biden. details on how democrats are responding. that is next. (♪♪)

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♪ welcome back. former president donald trump poised to outraise biden and democrats for the second-straight month.

megan joins us here with the details. >> that's exactly right. trump and his campaign are saying they raised a remarkable $141 million in may alone. and much of it from small dollar donors in the hours immediately following his guilty verdict. so the official fundraising data comes out on thursday. that's when we'll be able to verify trump's numbers and see what biden and the democrats also raised. but the $141 million figure likely puts him on top for the month. it's roughly as much as the biden team had raised in march and april combined and will underscore how that primary and the trial behind him, trump really has the fundraising momentum at the moment. that could change in june. so biden and former president obama headlined that star-steaded hollywood fundraiser that reportedly raised the money most money at $31 million. the campaign says raised 27 million on the west coast swing. the democratic funders say they feel the policy environment is keeping democrats engaged with topics like gun safety, ivf and abortion rights in the news and

that will help the biden campaign win small dollar support. they dismiss concerns over trump's fundraising. they knew he would catch up. >> neither of these campaigns seem in imminent danger of running out of money any time soon, right? i mean, they've got plenty of money. >> plenty of money. i did talk with one person who tried to down play this, they're always going to be able to run a campaign, both of them, at the presidential level. there's no problem there. but the money does matter. on one hand you're buying out ads. the biden campaign secured a lot of ads for later this year. so they're doing that before they get more expensive before they fill up. the early money can go a long way. it's also a signal of excitement at the small dollar level. when we get the data on thursday, that's one thing to look for. biden so far has been outpacing trump on the small dollar on the data. open secrets as of april said 47% of biden's donations were small dollars and 30% of trumps.

that really could have changed. trump's team is leaning into saying it was small dollars in particular. we have to see. but it can be a signal of who are you most excited about and also who do you think is the most viable candidate, most likely to win. people want to put their money behind the candidate they think can win. >> there was a narrative out in silicon valley there were notable, you know, investors, venture capitalizes throwing their weight behind trump now. is that actually playing out in terms of where we're seeing the corporate -- the bcs money go? >> definitely at the hedge funds and the vc firms, that's right. ken griffin, it was some of these people who had previously -- many of them had distanced themselves from trump and came back to him. where you're not yet seeing a big wave is in the other part of corporate america, right? public company ceos. we saw the meetings last week butwe haven't seen a ton of endorsement yet, endorsements yet for either candidate at that level. one of the analysts i spoke with this week said to me -- it was one of the democratic fundraisers said that to me is

the real corporate america. that will be more of a test than if you're at your own hedge fund, you have more flexibility. >> my guess is that relatively fewer heads of those corporate america companies are going to speak out and endorse anybody. >> i agree. it's a different environment this year. >> i don't think they want to stick -- very little upside to it. >> yeah. exactly. same with even supporting the conventions or even with lending your internet to the convention, just likely not seeing -- >> no matter what side you're on. i remember that famous michael jordan quote, republicans buy nikes too. you don't want to alienate customers. >> you either do neither or do both. i think that could be interesting, too, if we start to see ceos doe florida state to both candidates if they suddenly think this is actually a really close race. either one could win. >> nice to have you here. >> thank you. >> thanks for coming. yields on the move. rick santelli live from the cboe tracking the action. rick? >> reporter: yes, tyler, indeed.

it started out early this morning. weak retail sales and weaker revisions, but the stellar move of the day was based on a 20-year auction. you see the chart there. now you can look at 2s, 10s, 20s, 5s, 30s. every maturity made a new yield low on the session on that auction. let's go talk to a trader. hey, jim. >> hey, rick. how are ou? >> we saw weak retail sales, weak revisions, stellar 20-year auction. you guys have a big expiration coming ups don't you? >> kind of a big deal. june expiration, it's been particularly important for the last several weeks. we talked about this a way back because there's a ton of supply and also with the yur getting a bunch of buy back. and sure enough, you know, here we go vol compression, market up, sideways top action. >> inventory of these auction going on for months, literally. it doesn't surprise me. do you think what many of these auctions were put on that the option holders had any idea we

would be flirting with historic territory. >> this is what the wall of worry is all about. people buy hedges, buy protection. those decay. the deal rs hedge them and have to buy back those deltas. so this push up is essentially a decay of that worry pushing things up. so, will it continue? likely through the summer -- >> will that skew such that reversing these positions going into will most likely put upside pressure on the index? >> yes. and it has -- a lot of that has come through already, right? so we have a couple days with juneteenth tomorrow, only a couple days left until that expiration. on the other side of this, that's when you start to get a little bit of weakness and that demand kind of pulls off. that said with all the vol supply the middle of summer, likely continue to see this and the dispersion that it's causing as well. >> now, listen, let's get way off the beaten path. we have a little over a minute left. melissa lee said something really interesting to me 20-year

auction hit. she thought maybe some of these good auctions is because the globe is not enamored with french securities anymore, whether it's the political nature but what really is going on is the embedded debt in their society and what they need to do to reverse that. do you think any thoughts on what's going on there? >> well, look, we talked about the wall of worry. so the question is this going to be the thing that pricks and unpins all this other supply. unlikely, right? i think at least in this window. now, could it come to roost as we go forward into the end of the year, into next year, very possibly. and it also what's important is what does this mean for rates in general, right? >> now that you're stealing my thoughts because to me, the french economy, u.s. economy, they don't rhyme. one is little, one is big. however f you look at the debt to gdp, the eurozone requires 3% or lower. i believe france is hovering a little over 5. there's another country that's higher than that. you know what it is, jim. yeah, we're standing the middle of it. is there a lesson to be learned,

your final thought? >> this debt -- this need for more and more debt is a global phenomenon and will continue to push rates higher which has all kinds of political not gone effects not to mention structural effects for our whole world. very important but important how it fits to the big picture more than anything. >> i hope politicians in an election year don't lose sight that we're not france but we're doing our best to get there quicker rather than later. gas prices on the move. pippa stevens has the latest. >> yeah. down about 9% over the last two months. that's on just really soft gasoline demand here. we have seen inventory rise for the last three weeks at the same time refinery utilization jumped above 95%. refiners are running full out and no demand on the other side. take a look at this chart showing vehicle miles driven. it's recovered out of the pandemic. but it's not growing. and that's the key here is that before it was trending up about maybe 2% or so per year.

that has petered out. that means lower gasoline consumption. there's not one reason behind this but more hybrid remote work after the pandemic and fuel efficiency and more evs and battery electric vehicle. this pushed the 321 crack spread profits down to $22. very good by historical standards but well below what we have seen recently. shares now just about in bear market territory. >> all right, pippa, thank you very much. let's get to bertha coombs for cnbc news update. the shooter who killed five people and injured 19 others at an lgbtq nightclub in colorado pleaded guilty today to 50 federal hate crime charges. the convicted killer is already serving life after pleading guilty to state charges in the 2022 shooting last year. today's plea will allow him to avoid the death penalty. two of donald trump's legal advisers pleaded not guilty today not fake elector's case in

arizona. jenna ellis, boris epstein and 16 others are accused of trying to overturn 2020 election results in the state. the former president is not included in that case. and the u.s. budget deficit is projected to jump to $1.9 trillion this fiscal year. that's according to new congressional budget office findings, which cited increasing outlays for student loans, medicaid, bank failure costs and aid to ukraine and israel. the forecast could mean a second consecutive substantial deficit increase for president biden after deficits fell sharply in 2022, as covid era spending dropped. nearly 2 trillion. that's two thirds of the value of nvidia. >> wow. all right. thank you. coming up, some attractive upside.

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boeing ceo david calhoun's testimony continues. he's offering an apology. phil has the latest. phil? >> this was at the beginning of the hearing. what we're going to play for you is comments from boeing ceo dave calhoun when he walked into the senate hearing room as the setup for this -- let me explain. looks like 15 to 25 rel tis of victims from the 2737 max crashes who are seated about four to five rows behind where mr. calhoun is sitting. he walked in and this is what he said when he first walked in. it's a little hard to hear. we'll summarize on the backside if you can't completely hear it. >> before i begin my opening remarks, i would like to speak directly to those who lost loved ones on lion flight 610 on

ethiopian airlines flight 302. i would like to apologize on behalf of all of those -- past and present, for your losses. i apologize for the grief that we have caused. i want you to know we are -- [ inaudible ]. >> again, it was a little hard to hear because obviously the mic is only picking up what's right there at the witness table, but he said, we apologize. we are deeply sorry. obviously for the fatalities that were involved in those two 737 max accidents and that boeing is committed that it

makes the changes so that this never happens again. having said that after he turned around, he sat back down and the beginning of the hearing started, guys. the first questions from senator blumenthal included senator blumenthal saying, what exactly are you doing. and dave calhoun reiterated we are committed. we are making changes. then senator blumenthal held up a paper. i can't see it from here, but it basically looked like code. and he goes, what is this? we asked for an answer, and what your staff gave us was gob di gook. what's your take of this? dave goes, i would agree. that is gobbidy gook. it has not been a good start, we didn't think it would be. that gives you a sense of what's happening and we're only on the second senator questioning him at this point. they'll go through two rounds. we'll be here two, two and a half hours. >> phil, thank you very much. interesting drama on capitol hill. thank you for the reporting. we'll be back with you, i'm sure. despite from weaker signs

around -- despite weaker signs around the consumer, strength in the beauty space specifically in elf beauty. 30% upside highlighting strong sales data and retail partnerships. joining us now is the analyst behind the call, canico gentlemen knewties. welcome. what's elf doing right? >> yeah. so, elf has done a really good job making product at a value price point that that is prestige quality. that's really attracting the consumer's wallets and also, you know, they've done a really good job in this more modern day in terms of marketing through social media and really attracting that younger consumer. so i think all of that combined is really leading to market share gains across all distribution channels and, you

know, continuing to grab more of the consumer's wallet. >> and able to get more shelf space, right? yeah. they're expanding in walmart this year. uncertain yet how much more space they're going to get in walmart. we won't know until we actually see it roll out, but we think it's going to be bigger than the shelf space they got in target last year. right now they have about eight leanier feet versus 13 in target. if they can get to that 13 in walmart, another 160 million in annual sales for them. it could be very big. then on top of that, they're getting space internationally. so last year their international sales grew over 100%. this year they're getting more space and shopper's drug and boots and sephora, mexico. >> forgive me, melissa, just for a moment. that's amazing that five feet of shelf space translates into $130 million or whatever you said. >> lipsticks are small.

>> how much of this is a trade down? consumers are getting away from the more expensive brands and going down to an elf? >> actually we don't think that there's a lot of trade downgoing on. we think there's a lot of trade around where consumers are mixing and matches price points. so, if elf has a product, such as their lipoyl, which is a dupe on dior's lipoyl and consumers feel they're getting just as much quality, they're going to buy it. they're going to substitute that, but then they're looking at prestige products and buying what works for them and what makes sense. so, we're actually still seeing prestige outperform. prestige sales up 9% in the first quarter. so, we don't think a lot of it is a trade-down. we call it more a trade-around, they're mixing and matching price points. >> susan, great speaking with you. thank you. >> susan anderson. >> thank you. still ahead, microsoft launching new ai computers,

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welcome back to "power lunch." microsoft beating apple to the punch, launching new ai pcs. >> it's a big day for microsoft. we know about ai apps and other software, we spent the last several weeks seeing the announcements from the biggest companies in the ai game, but starting today, microsoft kicking off the artificial intelligence hardware race, launching about a dozen models of new ai computers, months before apple switches on its ai features for iphones. that's what we heard about last week. big part of microsoft's ai pc push is saying its latest devices outperform macs. they call co-pilot pcs. they're designed to process ai tasks on the device instead of over the internet.

a lot is thanks to qualcomm shipping its first-ever pc chips in the new kco-pilot computers. the hope here is of course, ai-pcs will help the market grow again after the post-pandemic slump. microsoft said it expects 50 million co-pilot plus pcs will ship this year. nearly 242 millionly pcs shipped in 2023, ai pcs going to be a tiny fraction of new computers bought this year. what can they do? what's the whole point of an ai-pc. in this case, they run a different version of windows 11 with more artificial intelligence features but days before today's launch, microsoft had to remove the marquee feature called recall because of privacy concerns. recall is a feature that takes screen shots every few seconds from your pc and creates a

searchable data base of everything you've ever done. so what could possibly go wrong there. so these pcs are going to launch ahead of apple, but missing its main ai feature and by the way, it's still not clear if ai-pcs can offer enough to spur those upgrades. by the way, same story with apple's announcements last week. we just don't know yet. we'll find out in a few months. >> steve thank you very much. steve kovach. coming p, a special three-stock lunch. stock splits. back in two.

all right. time for today's three-stock lunch. we'll look at three names announcing stock splits. here with our trades, quint tetreault, first up, virgin galactic down about 13% today. the company offering a 1 for 20 reverse stock split. what is your trade on virgin? >> hey, tyler. it's good to be with you. first of all, it's not for me. reverse splits, i'm never a fan of, to begin with. but this is a company that's just grasping for straws here.

it's not profitable, burning cash, high debt levels. you stay far away from this one until a real turnaround takes plait. >> chipotle announcing a 50% split up, up 5% this weekend, pretty heavy volume going into its split. quint, what's the trade? >> it's so good to see you again. this is also not for me. i'm not very exciting today, that's for sure. they're not reinventing food. and they're now trading 50 times forward earnings, nay hit their projections, those growth rates are around 24, 25%. high debt levels. i mean, people can enjoy the split, but take the money and run. >> all right, let's move on to broadcom, quint, announcing a 10 for 1 stock split last week. shares up are nearly 65% this year. your thoughts on broadcom, now at 1,800 a share, soon to be lower than that. >> yeah, tyler, i've been perpetually wrong on this one, but i'm going to stay in the camp. if people riding the name, good for them.

but again, it's not for me. at some point, the debt levels will come home to roost and the valuation is just too rich. it's trading 30 times, i think, everything is baked into this stock right now and the fundamentals are very, very overvalued, in our opinion. again, it's not a buy for me, it's a sell. >> i hear you're a fan of texas instruments. tell us why. >> yeah. in this environment, we're trying to get away from really rich valuations and move over to things that are a little more attractive and somewhat undervalued. stru texas instruments in our opinion has lower debt levels, and therefore a lower balance sheet in our opinion, and even though it's around the same multiple of broadcom right here, we don't feel that the growth rate is priced in nearly to the extent that it can. so we feel that this is a company that has a lot of legs and it would be a buy for us. >> all right.

very interesting. quint quint tatro, thank you very much. >> be sure to listen to "power lunch" wherever you go. so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free.

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because they never stop. no time to waste. this isn't sci-fi. this is precision ai. ♪ ♪ welcome back. we're awaiting president biden to speak on immigration, an increasingly hot issue. but the latest focus giving legal status to undocumented spouses. eamon javers is tracking that. >> we're waiting for president biden in the east room of the white house, as we take a live look at an event marking the 12th anniversary of daca. that's the plan that created the category of migrants now known as dreamers, who came to the united states illegally as children. the president is expected today to announce that certain non-citizen spouses and children of americans will be allowed to

apply for lawful permanent resident status without leaving the country. in order to be eligible, the white house says non-citizens must, as of yesterday, have resided in the united states for ten or more years and be legally married to a u.s. citizen and satisfy all legal requirements. in an election year with immigration a hot issue, there's clearly a political element to this announcement today. and the trump campaign is already reacting this afternoon, releasing a statement saying in part, quote, biden only cares about one thing, power. and that's why he's giving mass amnesty and citizenship to hundreds of thousands of illegals, who he knows will ultimately vote for him and the open border democrat party. now, melissa, a senior administration official told reporters that people may start to apply for the new status as soon as the end of this summer. president biden is also expected to announce executive action to allow dreamers to quickly receive work ivisas if they've graduated from an accredited

institution and have a job offer in hand. a lot of moving parts here. >> that would help the labor force to have all of those graduates be able to work here legally. >> that's right. >> let me bear down a little bit here. the matter pertaining to the spouses of people who are here, the spouse has to be a citizen, right? and then the person who can apply for a permanent status is a person who can be here illegally, can have entered illegally. >> and that person will not have to then leave the country and come back in order to apply for that status. so that smooths the pathway for a lot of people in that category. the idea here is, what the biden administration says, is what they want to do is keep families together. families that already exist, the idea is that the u.s. citizen who's the core of that family should be able to keep their family -- >> but the obvious counterargument here would be, you are legalizing people who came in here legally.

>> sure. you see that trump statement, what they're saying is obviously, they see this as an effort by the biden administration and by extension, the biden campaign, to generate goodwill and increase some voters population. >> all right. eamon javers, thank you very much. and thank you, everybody, for watching "power lunch." great to be you, mel. >> i'll see you tonight at 5:00 on "fast." "closing bell" starts right now. >> all right, guys, thanks so much. welcome to "closing bell." i'm scott wapner live from post nine at the new york stock exchange. this make or break hours begins with the rally and why wall street getting more bullish on stocks. the big question, should you do the same? we will ask that question to super investor keith mymeister. in the meantime, your scorecard with 60 minutes to go in regulation, looks like this. a disappointing retail number today sending yields lower and capping some of the activities in the major averages, as you see. there's the move in yields, but we're not doing too much. sectors pretty split as well. tech is leading once again.