♪ good afternoon and welcome to "power lunch," everybody. alongside kelly evans, i'm tyler mat mathisen. glad you could join us. the dow is lower but tech stocks are bouncing back thanks to nvidia. auto dealerships are not. many are still struggling with the effects of a crippling cyberattack. we'll hear from a dealership owner and a cybersecurity expert for the industry. and delta is opening a fancy new lounge at jfk. we'll talk to the company's ceo about efforts to attract higher-end customers. but first, let's get a check on the markets.

flip side of what we saw yesterday, today is the nasdaq leading the way as ever, up 1% while the s&p is now up .25%. the dow is down 3.10 weighed by boeing in some part and down off its lows of 400. shares of home depot are costing the dow 100 points. concerns that consumers are getting more selective about their home improvement projects. volumes are still struggling. nvidia, of course, is contributing to the gains of the s&p and nasdaq. reversing a big three-day slide, that cost the stock 15% from its peak last thursday. tyler, it's up almost 6% today. >> all right. we have seen how nvidia has the power to raise and sometimes sink the broader markets with a simple pullback. looking beyond that, what other threats are there to the markets this summer. let's bring in nick colas. welcome. good to have you with us. you know, there are lots of hot spots around the world today. you can add kenya to it, riots in nairobi. you have geopolitical risks, you

have u.s. political risk. you've got quite a stew to royal the markets between now and certainly our election day and maybe beyond. >> yeah, absolutely true. we're hearing this from clients both in the u.s. and in europe. they're very happy with year to date gains. they understand where the market is and why it's here. they appreciate nvidia obviously but looking at this summer with a bit more concern because we have less liquidity, less trading, people are on vacation and that's the backdrop we often see for a summer-time surprise in negative summer-time surprise and the u.s. political situation is probably the first time the debates on thursday. >> absolutely. it could change things one way or the other. but, you're not suggesting that there are problems intrinsic to individual companies as such. in other words, the profit picture looks pretty good. the economy is growing reasonably well. spending seems to be okay. >> all true. i think that the issue with the market right now is the market

is perhaps not complacent is the right word, but they're looking at the market as relatively stable. so we look at sector correlations to understand how confident investors are. they're exceptionally low right now, which tells us that we're probably in for a bit of a waiting period for the next month or two and any of these summer-time surprises we're talking about could be what upsets the market in the short term. >> so on the energy trade, nick, which is getting more interest, especially during nvidia's big crush in there, down 15%. why do you think that might have legs or should be an area that people should consider having exposure to. >> yeah, you're right. energy was the big winner since the nvidia highs last week. and has been rallying back on higher commodity prices but also i think an understanding of the geopolitical risks that we're talking about. our standing advice to clients, this goes back the whole seven years we ran data trek, never be under weight energy. and perhaps have a small overwiegt but that's the only thing that works during a geopolitical crisis that increases oil prices quickly.

if you go back to, say, 1990, august, 1990, the biggest summertime surprise in the last 40 years iraq invades kuwait. energy prices spike, the market declines. energy stock up 10% over ten days. they were the only hedge that created a oil spike in a geopolitical risk. always cognizant of risk and tell clients to stay focussed on it. >> i certainly get the idea of using energy as a hedge against geopolitical issues, but in periods where there were not those sort of proximate geopolitical risk. how has energy fared? not all that wael? >> very interesting point. you look at how energy has done since the end of 2019, the whole pandemic and post-pandemic period, energy on a total return basis is the second-best performing group since the start of 2020. >> you knocked me over with that. >> yeah. >> tech is number one. energy is number two. so, the key, though, is you have to reinvest those dividends. very important point.

if you just take the dividends and invest in something else you don't do as well. but if you're reinvesting your dividends in energy, it does quite well. it holds its own. >> on that -- sort of slice things here. i also wonder is nat gas the new oil? what we have seen with russia -- that's specifically to russia. massive gyrations where as oil was surprisingly stable. nevertheless, more broadly, nick, do we talk growth versus value or is that a waste of time? >> for right now, unfortunately it's a bit of a waste of time because growth is just taken over the world because of tech and nvidia. the only thing you say about growth is look at large cap growth s&p 500 growth, it's now 60% in the top ten names. it's a lot of concentration in popular growth approaches. the s&p 500 has become a growth portfolio. you don't have to go over too far into the s&p growth index to get that growth. you get it in the s&p without that concentration risk. it may seem bad in the 500.

it's worse in s&p large cap growth. >> nick, good to see you again. great to have you back. nick colas. we appreciate it. >> thank you. let's talk more about the possible threats to the market like economic data and how the might react to it. rick santelli is standing by in chicago along with pimco's jerome schneider. over to you. >> thank you, kelly. jerome schneider, welcome to chicago again. what i noticed today was the 2s, 10s spread is hovering just below minus 50 bases points. that is the most inverted spin all year. >> right. >> what is that telling us? >> it's tells us ultimately that the economic data is beginning to turn a bit. retail sales remain strong, at the same time, you're having the inflation numbers come off. everybody's eyes firmly on what happens on friday. the reality, conflicting data at this point in time. when we're really seeing indicated by today's 2-year auction -- >> i gave it a b-plus. it was solid. >> it's probably b-plus,

a-minus. >> what's ultimately investors cash, federal reserve will modestly affect interest rates later this year. the attraction of the curve to earn more income but at the same time has the potential for price appreciation mean that is a need to get out of money market funds. >> it is a split decision. as i watch different data points, last week, for example, yes, we had weak retail sales. but s&p global service sector pmi was the strongest since april of '22. so there are conflicts. what do you think about the yield curve, 10s potentially where it's at, lower stretching out that inversion, it's probably because some of the anecdotal in the slowing in the economy, don't you think? >> let's put it in the context of where can you possibly earn equity with returns? fixed income is presenting that opportunity specifically the front end of the yield curve, 2,

5 years beyond that in a diversified portr oun in budget. >> specifically further out the yield curve there's going to be a affect where there has to be more premium along the way. so for investors focussing on where to find these equity-like returns but in fixed income focus on diversification outside the cash markets, outside of treasury builds but inside the long end of the yield curve to find shelter until we understand where growth is going, understand where the inflation metrics are and all in all let's also recognize the fact that fixed income is offering inflation adjusted returns, positive adjusted returns per the first time in the long time. >> yeah. but you're making some assumptions that inflation will stay tame. i personally have my disbelief on that topic. we only have a few seconds left.

yield curve, what you're describing to me seems to be that you buy the short end, you sell the long end, you look for curve steepening. but ultimately, here is what i want to know. would you be surprised to see a 10-yield reach 5%? >> probably unlikely at this point in time. look ahead. don't be discouraged by any one data point. the economic data will be fast and furious. but at the same time, recognize that the federal reserve is going to react to a lot more than data. remember, financial conditions are incredibly easy right now. and that's part of the calculus, too. not just a single point of inflation data. >> it is an election year. nobody likes to talk about that when we're discussing the fed, but it is what it is. and jerome schneider, thank you for joining me today. tyler, back to you. >> jerome, rick, thank you very much. we appreciate your time today. all right. coming up, a massive cyberattack

its a biggy when "power lunch" returns.

[thunder rumbles] ♪ ♪ ♪ ♪ 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] ♪ ♪

dave's company just scored the [thunder rumbles] comcast business 5-year price lock guarantee. high five! high five... -i'm on a call. it's 5 years of reliable, gig speed internet... five years of advanced security... five years of a great rate that won't change. yep, dave's feeling it. yes. but it's only for a limited time. five years? -five years. introducing the comcast business 5-year price lock guarantee. powering 5 years of savings. powering possibilities.

about a possible timeline for resolving this mess. eamon javers joins us now with more. hi, eamon. >> hi there, taylor. cdc global acknowledges that it will not be able to get all dealers live before june 30th. now, according to a copy of the message obtained by cnbc this hour, the company is telling its customers should you need to make alternate plans for your month-end financial close process, you should do so. now that will likely be frustrating for car dealers across the country who are reeling from the impact on their businesses from the cyberattack on cdk. as many as six publicly-traded

auto dealers already filed notices with the s.e.c. warning of a impact to their businesses. cdk is not answering questions about the cyberattack but put out a statement on saturday saying in part, we have begun the restoration process. based on the information we have at this time, we anticipate that the process will take several days to complete, and in the interim, we are continuing to actively engage with our customers and provide them with alternate ways to conduct business. now, all of this raises questions, tyler, for the canadian private equity firm brookfield business partners which acquired cdk in $8.3 billion transaction back in 2022. the fallout from the cyberattack and the way it's been handled could have implications for any exit plans that the private equity firm has for that cdk investment. in a statement to cnbc, brookfield said in part, we believe that cdk is a great frustration with the lack of

communication from cdk about what has happened here and i should also say cnbc learned just in the past few minutes that cdk hired the cybersecurity firm unit 42 at palo alto networks to handle the response to this incident. so we're learning more as we go along here. let's also bring in two industry players now who are in sea island, georgia, today for a large auto dealership conference there. brad holton, and john hiezer joins four dealerships in north carolina. gentlemen, thank you for joining us from sea island hack and its their business? >> well, you know, first, thanks for having me. i would say that the concern up to this point has been limited because a few days here a few

days there, not a big deal. but when you start talking about months close, especially for public-traded companies, it's a big deal. so, you're starting to see some people get more concerned as the time rolls by. >> brad, what do you make of this notice that we just saw from cdk. they put out this statement to their customers saying june 30th is now in question. if you need to make alternate plans, go ahead and do that. what does that tell you as a cybersecurity adviser to auto dealers about how serious this is? >> well, i mean, any time you have a ransomware event, you have to figure out the ways of recoveri f data integrity check to make sure that the data the dealers put in before the incident is the same in there now. it's a long process, even if you

have everything stood back up in a lab environment and kind of got past that, there's still a long way to go before you're actually back to a productive environment. >> john, i think the thing here is that people don't tend to blame companies for cyberattacks. you're the victim of a crime if you got hit by a cyberattack. everybody get tlas. but i think people do get concerned about the way companies respond to cyberattacks. how do you think the dealership community feels about cdk now, their response to this attack so far and do you think dealers are going to look for ways out of their cdk contracts and look for other alternatives? >> you know, i don't think it's to that point yet. you know, certainly as we find out more information, did they make all the right decisions for protecting us, i don't know that. we'll know more about that as time goes by. but as of right now, i think everybody understands that this could happen to anybody. and you know, it could happen to us. and you know, when you look at what it did in the banking business and mgm and some of the other companies out there, you

know, it can happen to anybody. so, we're not ready to put a dagger in them yet. i think we got to give them a chance to do all the right things and recover as fast as they possibly can. >> do we know whether -- you called this a ransomware attack and clearly it must be. do we know whether ransom has been paid? do we know how much it was paid? and do we have any assurance -- does cdk have any assurance that even after paying the ransom that they will be spared a second or maybe several more attacks from other ransom seekers? >> all we know is, you know, what's been disclosed by cdk li. they did mention ransom in one of their updates. that was only in one update. you know, there's been speculation that you got black now. they were previously part of other groups. so typically when they're paid,

they do decrypt, but once again, getting the decrypter is the first stage and then you have to get through decrypting and all the data integrity things. would they be likely be attacked again, probably not by black suit, but anybody can attack anybody at any time. and i think every company in the automotive industry and really every company in all of our major industries are being attacked constantly. we're seeing thousands and thousands of attacks everyday. >> brad, you have pretty good visibility into this whole industry of auto dealers. could you give us a sense of what this means for the private equity firm that bought cdk a few years ago. we saw this statement from brookfield business partners they paid more than $8 billion for this company. is this event having a material impact on the value of that investment, or do you think they'll be able to ride this out and ulti

happen to anyone. i could have happened to any vendor. i think we have to wait and see kind of what the response is, what the long-term effect onket things are handled from here. >> john, you know, i'm fascinated by human ingenuity in a crisis. i imagine that there are all kinds of very clever workarounds that people are doing to try to figure this out. probably not that many people on sales floors anymore who remember how to fill out forms in triplicate and use carbon paper and all that stuff. what are some of the clever things you're seeing to figure their way around this in the absence of their software? >> what we have seen is cool. at first it was what are we going to do. and pretty quickly our vendor partners like assurance and route 1 and ally have come up with back doors to do e-contracting. so you know, it doesn't completely disrupt your business. of course, it slows it down. but, we do have a way to contract customers so they can buy the vehicle that they

choose accurate and, you know -- you'll have to do that just to be able to do a financial statement let alone your inventories and all those things that are exposed by this. so, yeah, we had pdf forms and do other things. it's cool that everybody pulls together and finds a solution. so far we have been less harm than you would think. >> yeah. so there's the silver lining. john and brad, we'll let you get back to the conference. sea island is gorgeous this time of year. >> thanks to you as well for bringing that to us. our eamon javers. coming up, the top states for business, wisconsin poised to be a new tech hub as microsoft promises to invest 3 billion for a new ai data center. this isn't the first time the

state promised a transformational project. more on that next. ♪♪ ♪♪ to help drive its growth and keep its supply chain moving, so more pet parents can get everything they need... right when they need it. keeping more pets, and families, happy. ♪♪ for the love of moving our clients forward. for the love of progress.

♪ welcome back to "power

lunch." dow is waited down by declines in home depot and other names today. but the s&p is still up about a third of a percent. the nasdaq up more than 1% as nvidia rebounds with a 6% gain today. meanwhile, just about two weeks away from our latest cnbc america's top states for business report in a year y massive amounts of government money are changing the competitive landscape. our scott cone is out live in wisconsin where they know a thing or two about big promises and heart break, scott. >> reporter: that's right, kelly. we are in mount pleasant, wisconsin. we're about 26 miles south of milwaukee. at the site of what was supposed to be the eighth wonder of the world in former president trump's world. it was supposed to be a $10 billion electronics manufacturing plant the taiwanese foxconn with 13,000 jobs in exchange for about $3 billion in state and local subsidies. it did not happen that way. it did get some of it built, but

most of the space that you see behind me, foxconn has put up for rent. and here in mount pleasant, they are still trying to pick up the pieces. [ applause ]. >> reporter: it became clear early on that this was all for show. foxconn quickly scaling back the plans touted by then president trump and governor scott walker, blaming labor costs. new governor tony evers would renegotiate the incentive deal but not before the state and local government spent hundreds of billions of dollars to buy land and build infrastructure. local resident kelly now head of the county democratic party says people are still angry. >> everybody felt like they were -- that they were lied to and that is such a hard thing to come back from. >> they dug a hole. those golden shovels. and then they fell into it. >> reporter: last month, president biden came here to troll trump, announcing a $3 billion microsoft data center on part of the foxconn site.

the chairman of the ra seen county board says with all the new infrastructure and microsoft, all is well that ends well. >> kind of like the field of dreams. if you build it, they will come. >> thank you, wisconsin. thank you. god bless you, wisconsin. >> reporter: trump didn't bring up foxconn when he returned last week, but his supporters don't seem to be holding it against him. >> i don't think foxconn is dead. and i think that it got delayed. >> reporter: for the record, foxconn, at least as it was originally planned, is definitely dead. the company has confirmed as much. and microsoft is not exactly a replacement. for one thing, the infrastructure here that the taxpayers paid for is wildly overbuilt. microsoft is going to collect its own big tax break from the state for building its data center here. it will pay $50 million for the land that the taxpayers bought for foxconn. but, because foxconn had first refusal on that land, that $50 million will go not to the

taxpayers, but to foxconn. guys? >> and how many people will this microsoft plant supposedly employ compared with the tens of thousands or more than 10,000 as i believe you said that were to have been employed at the foxconn installation? >> reporter: yeah. supposed to be 13,000 jobs at foxconn. microsoft will they say employ about 2,000. foxconn at this point does have a little about 700 and some employees here in wisconsin. so, they are not anywhere close to where they thought they were going to be. >> how did foxconn get the land and therefore get the proceeds from the 50 million that microsoft is going to pay allegedly -- look, to the county but it goes to foxconn. how did they get that land? did they buy it? >> reporter: that was part of the deal. part of this subsidy that the county, the town and the state agreed to to lure foxconn here

was that they would acquire land. they acquired about 100 homes, displaced a whole bunch of families, bought this whole site that foxconn ultimately was going to build this giant tech mecca on. but they didn't take all of the land. so, foxconn had the right of first refusal. so, according to the deal, when microsoft came in and acquired it, foxconn got the money. >> interesting. scott cohn, we look forward to best states for business in a couple weeks time. thanks very much. >> reporter: yep. you bet. let's go over to julia boorstin for a cnbc update. julia? >> that's right, tyler. cnbc news update. a judge partially lifted a gag order imposed on former president donald trump and his new york hush money case. trump may now make public statements about witnesses or jurors from the trial, but still barred from speaking about some staff at the manhattan d.a.'s office and the court. trump is said to be sentenced on july 11th, after being found

guilty on all 34 counts. eli lilly is teaming up with openai to develop treatments for drug resistant bacteria. public health authorities raised concern about the lack of new treatments to combat the so-called super bugs that occur about 3 million times a year in the u.s. the collaboration comes after lilly committed $100 million in 2020 to fight the pathogens. a federal judge rejected a $30 billion visa and mastercard fee settlement intended to resolve litigation in 2005 over swipe fees that merchants must pay to accept the credit cards. the companies will now face a trial unless they are able to reach a new deal that the judge approves. visa and mastercard have yet to respond to this ruling. back over to you. >> all right, julia, thank you very much. delta aiming for the high fliers. they want the luxury ones opening a new top tier lounge at jfk. there have been some concerns around airline costs and demand, but delta is up more than 20% on the year. we'll hear from the ceo next.

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description.

visit indeed.com/hire

♪ welcome back to "power lunch," everybody. airlines fighting over the top

tier customers. today delta opening a new lounge at new york's jfk airport, designed to be nicer, more exclusive than its current delta clubs which had gotten to some views crowded. phil lebeau is at the new delta one lounge with delta ceo ed bastien. phil, gentlemen? >> reporter: thank you very much. ed? it's nicer, more exclusive. plenty of elbow room. why the delta lounge. this is not just another sky club. >> this is not another sky club. they're great. yes, they're overcrowded. we're working on that, too. we're upscaling the next set of lounges. so this is a delta one lounge. only for customers that are flying delta one, 360s will have access, but people that want to have that next level premium experience will have a great time here. i do believe it's the nicest lounge, certainly in north america. one of the nicest lounges candidly in the world. people see it, we open it

tonight, i think that's what the review will come back. >> almost 40,000 square feet. >> 40,000 square feet. the other benefit we get, as we open this lounge, it takes pressure off of our pre-existing club at jfk, which is a nice lounge. when it's crowded it's not so nice. we'll get two lounges for one as we open this. >> have you heard from your frequent fliers saying, look, there's too many people in the lounges, not just here at jfk, but other lounges around the country and experience lost its allure. >> we have heard that. but candidly that's an old tape. that was more the last two years as everyone started to come back to flying quickly. we have implemented some pretty significant access issues in terms of increasing the qualification levels, but for our own people but also for our customers. and it's already the overall density of the clubs and the crowded conditions are coming down pretty meaningfully. we're adding new clubs, not only do we have this at jfk, new delta one lounge exclusive in l.a. as well as boston by the

end of the year. we're opening up a new one in seattle probably start of next year. we're adding more and more real estate at higher-end clubs. so you stay with us over the course of the next year or two, this is just going to continue to get better and better. >> ed, i know kelly has a question for you. kelly? >> thank you. i think i rather talk about the lounge, but i have a quick question for you about what's going on with boeing and airbus. you guys are more of an airbus shop if i'm not mistaken. they are talking about delays in plane delivers this year. do you have any frustration overall with should the availability of reliable aircraft? >> well, i think everyone in the industry is frustrated. that said, i'm glad we're with airbus. they have been delivering us airplanes fairly regularly the last several years. this year we'll take approximately 50 new airbus planes in. and they're coming a little bit delayed, but not in a meaningful sense. and we're in pretty good shape there. i think it's far beyond boeing and airbus. into the engines the overall

supply chainconstraints still out there is keeping a lid on capacity no question. >> how long does that last, those supply chain issues really in the entire aviation industry? >> i think -- first of all, we'll never get back to where we could have been at one point. this has been going on for years already at this stage. i think your looking at another three to five years because this is about labor, this is about parts, this is about insuring that you have the right quality specks with the faa getting a whole lot more energized around the certification process. so, i think this is going to continue to be some of the challenges that we see in our industry in terms of the constraint. >> we almost had 3 million people flying in the united states for the first time on sunday. the faa and the tsa both believe we're going to see that the 4th of july week at some point. are you comfortable with where the industry is as we continue to see these record levels in terms of the infrastructure, handling the increase capacity, the increase number of flights?

>> i am. we have been seeing it all along. memorial day weekend was a very significant high water mark for us. i think the 4th of july, as you said, will be another higher water mark yet. we're not adding necessarily new planes. we're filling them up even higher. so we're flying loads consistently in the 90% range, maybe 95% range on certain days. so it's not as if we can get more seats in the sky. but we're putting more people in them. >> a lot of those people flying delta over to the olympics. >> absolutely. look forward to that. >> you'll be there. ed bastien ceo of delta. kelly, we'll send it back to you. >> really fascinating to hear just kind of, ed, how much of a challenge you think the industry faces with some of these supply chain issues. it looks beautiful. thank you, both. we appreciate it. we'll check it out in person some time. quick power check on the plus side of the s&p. carnival today, best in the index. steady cruise demand. on the downside, pool corp.

we'll get the trade on pool coming up in three stock lunch. ♪ i am, i cried ♪ [ laughing ] ♪ i am, said i ♪ ♪ and i am lost and i can't ♪ punch buggy red. ♪ even say why ♪ ♪ i am, i said ♪ ♪ ♪

♪ it's time for today's three stock lunch with our trades, scott nation's president of nation's indexes. scott, great to have you here today. and we got to start with a stock everyone is talking about. nvidia went from down 15% on the highs, snapping back 6 president today. what would you do with the stock here? >> nvidia is a buy. the scale of the rally the last couple years makes you think it's in a bubble. the forward pe is only 42.5. that's not a bubble. if you want a bubble, in march of 2000, the pe for cisco was 196. >> wow. >> so talk to me when nvidia gets near there. so we get the buy because the rush to ai is not going to ease. we get to buy nvidia, which is the premier name in the space on

a pullback. and the company has earned this pe. the last quarter, year over year, increased revenue 255%. and operating income increased by six times. so it's performing. it's a great company making what everybody wants and at actually a reasonable valuation. >> let's move on next to walmart, under pressure today after the company's cfo made some comments at many of the current quarter been challenges. your thoughts about walmart in the short term. >> walmart is a short term sale. the stock raised from about $60 in mid may to nearly $70, up 30% over the past 12 months. and has a forward pe of 27. which is really tough for me to stomach for any retailer that isn't named costco. in particular in a situation where walmart's customers are really going to be battling inflation, probably more so than most other retailers customers. the stock got to overbought.

and it's pulling back from that condition. i think it probably has another 10% to go to the downside to get back into equilibrium and get into that overbought situation. >> interesting. rarely hear bears on walmart. you might be one of a kind right now. we'll watch and see if that bares out. speaking of moving to the downside, pool is down on lower guidance. they see persistently weak demand. sluggish spending. down 7% today. how much more room do they have to fall or do you think it's finally an entry point? >> no. pool is a sell. pool corp. makes, guess what, they make pools, pool hardware, pool maintenance equipment. worst performer in the s&p all day. as you pointed out, they cut 2024 guidance ahead of earnings which come out on july 25th. year to date revenue is 6.5% behind where it was last year. the eps guidance was 18% lower. as you pointed out, the company

blamed what they called discretionary pool spending. that sounds a little like an oxymoron to me. but what they mean is that if you have a pool, people are paying to maintain it. but they're not selling many new pools. i guess everybody who wanted one or bought one in the pandemic or at least they bought one if you couldn't afford an rv or couldn't get ahold of an rv. so the company is a sell. the chart is horrible. nobody wants a brand new pool. and earnings are collapsing. >> ouch. ouch, ouch, ouch. i want to go -- soak in a pool somewhere this afternoon. we almost put one in. but i pulled the plug on that one. scott, thank you very much. appreciate it. >> thanks, tyler. >> maybe there's still pent-up demand there. >> maybe. >> no time like the present. >> no. more "power lunch" ahead. but first as we head to break, cnbc celebrates pride month throughout june. and here is amazon senior product manager. ♪ in today's diverse work

force, the lgbtq plus community brings in a unique blend of creativity and resilience. by embracing visibility, companies can unlock this potential. at the same time, the lgbtq plus employees can thrive by creating community within the organization, advocating for inclusive policies and focussing on development. it's a win/win. ♪ okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

(♪♪) ♪ 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 ♪

♪ shares of solar edge are down sharply after a key customer filed for bankruptcy. pippa stevens. it's all bad news, pippa. >> more clouds, like they say. that stock now down more than 20% after solar edge disclosed a number of things last night all of which point to a market still facing significant challenges. solar edge announced a 300 million convertible note offering. which shook the street by surprise and could ultimately prove delutive. one customer has filed for bankruptcy and solar edge may fail to collect what's owed or can only after a significant delay. solar edge did reaffirm its q2 revenue in margin guidance but

now it expects negative free cash flow of $150 million for the current quarter, citing extension of customers. jordan levi saying the negative guide represents yet another proof point of continued market challenges and inventory overhangs. a company stepping up to employ olym olympians. first, yous hear our podcast. listen to "power lunch" wherever you go. we'll be right back. 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. tamra, izzy and emma... no one puts more love into logistics than these three. you need them. they need a retirement plan. work with principal so we can help you with a plan that's right for your team. >> i made a promise let our expertise round out yours. to my daughter that i would get my college degree. i had 20 years of experience as an hr professional. i had reached a ceiling, so i enrolled in umgc. umgc removes every barrier. everyone treated me like a person with individual needs and met me where i was.

i would not be the person that i am today, the mother, the business owner, had it not been for the partnership with umgc. [ music ] this is remington. ...he's a member of the family, for sure. we always fed them kibble— it just seemed like the thing to do. but ...he was getting picky we heard about the farmer's dog... and it was a complete transformation. his coat was so soft, he had amazing energy. he was a completely different dog. it's a no-brainer that (remi) should have the most nutritious and delicious food possible. i'm investing in my dog's health and happiness.

power outages due to outdated grids and volatile weather conditions are leaving homes without power, but not yours. you took control. you took action. you made your home a generac home. when the power goes out, your life goes on uninterrupted. it's not just a generator. it's a power move. call or go online to request a free quote today.

we are about a month away from the summer olympics in paris. of course, there's excitement for fans and those qualifying. for many of the athletes without a sponsor, it also comes with a significant cost. one company is trying to change that by employing olympic athletes part time while still allowing them to compete. let's bring in ceo of broad ridge, financial services firm that offers to lead program for olympians. and michelle is a u.s. olympic rower, who's part of the program. welcome to both of you. how many people are in the program? are they all rowers? and what do regular employees think about some of the scheduling forbearance you extend to these special cases? >> tyler, thank you. thank you very much. we have -- we started in 2022

with four athletes. today we have ten. it's really expanded because of the very positive word of mouth, both amongst athletes and amongst leaders at broad ridge who see what great associates these are. with the advent of remote work, it is much, much easier to incorporate elite athletes into the workplace than it has been in the past. people can do their training, come back, pop into -- pop into a team. we're a global company with 15,000 associates in 23 countries. we already have that sort of virtual element going. it's worked very well to integrate them into our teams. >> are all participants a rower? i know you were a rower in the past at oxford? >> yes, they are at this time rowers. we got started with u.s. rowing

in 2022. they brought it as a marketing opportunity. i see it as a talent opportunity. rowing is an academic sport, actually. we have ten athletes, two from stanford, two from princeton, dartmouth, penn, many other great universities. these women performed really well there. it's a sport that requires intense teamwork. you're only as strong as your weakest link in the boat. have you to put the boat first, grit and resilience, hard work are all real elements of rowing. that's a great fit in the business world. >> michelle, thanks for joining us. congrats on all your success. did you have a financial background before broad ridge? 20 hours of work a week, nine months of the year. the other three months you're traveling and competing. in a typical week you have to do all of your workouts and all of your work.

>> prior to broad ridge i did receive my mba at the university of tulsa before pursuing my olympic pursuit of a gold medal. i was in the nonprofit sector before starting at broadridge. broadridge is so different. there are so many opportunities for upward mobility, rotations and business units. i'm grateful that something like having that mba can be put to use while chasing this olympic dream. as you mentioned, it is a lot to manage both pieces of my life. for the olympic preparations we're doing about 18 practices a week. somewhere between 25 and 30 hours of practice. as long as i can really keep those transitions tight, we'll be on the lake in the morning for two to three hours, do a quick transition, sometimes feeling like clark kent moving into my broadridge work for four to five hours a day before going out for a second row. in the evening, some weights or yoga or pt sessions. while the training environment,

the working environments for both jobs are very different, being on the lake versus being in my broadridge office, you know, the work itself is so similar. it's an unrelenting pursuit of excellence. it's wanting to do a great job for my team, whether that's in the boat or on the client success team at broadridge every day. and being fiercely focused in both areas. it's really enjoyable. >> tim, is there some kind of tit for tat here like the army, where people -- you get years of service for what you've offered in terms of the year-term flexibility or anything like that? >>. >> well, we have had real demand for these athletes amongst our teams. and so i think it's just -- -- you see people, you see how they perform. you know, we're not a company based on years of service. we're a company based on what can you do and what can you add. as people have wanted to rotate or move into hopefully -- my

hope is we'll be able to recruit athletes like michelle to our company full time after paris. if not -- as they sort out what they're thinking about for los angeles, we'll support them that way, too. but i think there's just real demand for this. >> i want to find out for michelle. what are your events and what are the qualifying? are you singles, doubles, quads? >> yes. i compete in what is called the light weight women's skulls, a two-person boat where we each hold two oars. our first day of racing in paris olympics is july 28th. that's where we start our heats. and the final will be on august 2nd. >> so you've already qualified for the team, you're good? >> we qualified. we'll do a fourth of july american sendoff and the usa olympic team heads over to europe on july 5th. >> congratulations to you, michelle. tim, thank you for being with us today. and good luck with the employment program as it moves

forward. the opening ceremony for the olympics are friday, july 26th on our parent network, nbc. but before that, the olympic team trials continue thursday at 8:00 p.m. eastern on nbc and peacock. track and field, men's gymnastics. i was watching some track and field last night. really exciting stuff. >> love it. >> good stuff. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. thanks so much. welcome to "closing bell." i'm scott wapner at post 9 from the new york stock exchange. this begins with the tale of two markets. index is doing pretty well this year. many individual names in this market, though, not so much. schwab's liz ann sonders is with us momentarily to expand on what she calls the great divergence and where it goes from here. in the meantime, your scorecard with 60 minutes in regulation. rough day for the dow. under pressure for much of the day. home depot, the big loser after pool corp warned about a slowdown in new construction projects. we'll watch those two stocks over the last hour. elsewhere, united health,