>> citigroup. earnings on friday. the market believes it's going to be good. so do i. >> the linkster. >> >> elanco. i like it on the buy because they have a lot of new products coming. $600 million next year? community doesn't see it, 39 12-month price target. >> i'll see you on the bell. ♪ ♪ and a great interview with corning on "squawk box". you missed it this morning. welcome to "the exchange." i'm kelly evans. here's what's in this hour. the etf up for a sixth straight positive day and nvidia with the two price target hikes today and taiwan semi just hit a major milestone and the street's number one chip analyst is here with the power players he sees dominating this next run. plus, it's a big week for the markets with more inflation data on deck and the market sees short-term volatility and he

says longer term, this rally is nowhere near the top. he'll tell us how he's taking advantage of it, and politics here and abroad and the market implications for both. we'll get the latest after france's stunning turn of events in the election yesterday. first, let's start with the markets and dom chu is back with our numbers. >> kelly, i'm not going to bury the lead. we'll get stars right here right off the bat because we do have record levels on the intra-day basis with the nasdaq composite. there's your headline. we did hit record highs for the indices today. right now the drow industrials down 53 points. 5566 is the level on the s&p 500 and just about flat on the session, and at the highs, we were up 16 points and down five points at the lows and the number that we're going to want to watch going forward and the high watermark at this point is 5583, that's the record intraday level for the s&p 500. the nasdaq composite, up about 25 points to 18,378, up about

0.1% and the outperformer of the kay and one of the reasons why is we're seeing a handful of record highs and individual stock wise and a lot of it is big tech oriented driving some of that nasdaq sentiment and apple shares just about flat on the session and amazon shares down about one-half of 1%. meta down half of 1% and each of those stocks in addition to eli lilly and goldman sachs all hit intraday levels at one point in trading so far today. one right now about 14 companies in the s&p that are at record high levels on an intraday basis. so keep an eye on that technology trade and mixed right now, but they all hit record highs earlier on. kelly mentioned the chip stocks. again, two big target hikes from wolf research and ubs taking nvidia's price target up to $150 a piece. meanwhile, taiwan semiconductor and the milestone kelly mentioned was it briefly touched

the $ trillion market cap level for taiwan semi makes it, by the way, more valuable than berkshire hathaway. taiwan semi and increasing focus for investors and earnings come out next week. i'll send it back to you. >> the trillion dollar mark, just shocking, dom. thank you very much. my next guest sees more upside ahead for nvidia and especially around data centers. in fact, he calls the opportunity in that area still early and enormous. let's bring in stacy rascon, senior semiconductor analyst at bernstein. stacy, i would expect you to have something eye rolling to say about how far it's come, and i love that you're still on the bandwagon. tell us why. >> look, we're still early in ai. people maybe haven't forgotten, but chatgpt and the first time the street was able to reach out and touch this and see what it could do. it's a year, year and a half in, it's not that long.

we can see the demand that is out there and the orders there were there and the road maps and all of the different silicon players and we are still early on this journey. >> how early? to people who say how can that be possibly be true? now you can see the articles trickle out and ai is not that transformative. talk about why this stock can have more? >> so people get nervous, and i get it. don't get me wrong. the stock and not just the stock, but the numbers have run so far so quickly that people do worry about sustainability and i understand that, but at the same time, you can sort of look at where the shares are trading on a valuation basis and they're much cheaper than they were before this started. as much as the stock has gone up with the demand for the parts and the impact of the financials has gone up even more, even more. it's been really amazing. >> we're at the point now that we're seeing massive amounts of capex from the players which is

good, i think when people get nervous is in the enterprise side and we are still in the experimentation phase, and things are slower, and i do like the amount of breadth that we are seeing here. there are many, many more here that we are experimenting. talk about large cloud vendors and their base is broadening out. we are seeing more and more deployments as business models are getting built on the price side. the hyperscaler has been built out quickly and i get that nervousness, but at the same time, everything we're seeing right now in terms of medium term demand, and it doesn't seem like there are signs of a slowdown there. >> when we did our segment on the race to 4 trillion, you can't have both microsoft and nvidia reach $4 trillion at the same time because his line was basically microsoft can't afford

for nvidia to be that necessary and if nvidia will be that large then microsoft's margins will be destroyed and its profitability will be called into question. >> i don't know about destroyed. you have to remember a lot of the capex that's going on right now is not necessarily all incremental. you can see the spending on traditional cpus and networking and they're all in the toilet right now, right? so there's been a pivoting of spend for more traditional things to the gpus. some of this gpu capacity is fungible. these cloud vendors can use it for their existing needs, as well. not all of it is generative ai and some of it is recommendation engines and more legacy type of machine learning where there's clear returning on that, and even sort of run through the math like if the return take longer and it doesn't impact your margins all that much. a colleague of mine that covers microsoft is a few hundred basis

points on the depreciation load. it's not crazy the amount of money that they're spending at this point. it's not like they go down the toilet if this doesn't come up. i push back on that a little bit. >> we should continue that discussion because maybe there could be $4 trillion trumps and apple, too. whenever there is a boom in something or just a well-performing stock. if you missed the big one, go with the next in line, and i'm not sure that ever really works out, to be honest and that's the line on amd, and i noticed you're also market perform and beware of core business weakness and why are they the ones to bet on if you don't have thestomach for nvidia. >> i understand the need for the second source and they are the second source on core gpus and you can see where the dollar is going. amd has suggested they'll sell $4 billion+ this year. i think most investors think they'll do five or six. i don't want to take too much

away from them. it was zero a year ago, so even four to zero is good, that being said, nvidia might do $100 billion in data center revenues and it's clear where the dollars are flowing, right? they're not flowing to amd in the grand scheme of everything that's getting spent right now, and in fact, most of the credible second source may not be amd and maybe a player like broadcom or some of the other players who were doing chip design for the hyperscalers and that may be the more credible and realistic second source rather than a second gpu. >> your nvidia price is the 52-week high and for broadcom it's 1950. would you describe the opportunities there as still massive, as well? >> i actually really like broadcom. it has the second best ai story in the space. remember, in semiconductors, it's nvidia and broadcom. that's about it and everybody

else, amd and quite a few other, they've been weakened where it's not been helpful. with broadcom, they played some of the legacy networking areas and the ai business has been strong enough to completely bridge over it so they haven't had to taper their numbers down. their current ai guidance for the year is very, very conservative. they have software businesses and other things that can drive upside and the stock is very cheap, and i really do like broadcom. >> you're still market perform on intel and it stays at 35. just a final comment. what's significance of tmc reaching a dollar mark? >> i try not to put these arbitrary levels. it's a very important company and all of these folks depend on them to some degree and in some cases to a significant degree. it's an incredible company. it's very important to the ecosystem and they're doing very well. good for them. >> so to put a point on it, if

nvidia is a $3.5 trillion market cap company and you think it can gain 15%, 20% from here. how big is too big to contemplate, $4, $5 trillion? is that realistic? >> it wasn't long when people thought $5 trillion would be a stretch and now we're three. over time i think the opportunities front of them is still big. i think we're still early and i think it can drive upside. >> just like that rocket behind you. stacy, we appreciate your time. >> stacy rasgon. earnings are more on deck and while my next guest sees volatility in the near-term, the rally is near the top and he's looking at three sectors for opportunity and larry is chief investment officer at raymond james. larry, nowhere near the top? i don't know if you call it what katie stock continue said this morning and she said look, she's looking at charts and the

leadership stays narrow and the rally keeps going. and the breakouts in the tech areas and we were talking about the semiconductors and what they're seeing. what are you seeing? what do you expect? >> i expect there to be broadening in participation in this market and the catalyst to that is by time we get to the fourth quarter you will start to see the earnings for the tech sector start to come down, still being rather healthy, but you will see the other areas of the market start to see their earnings growth accelerate, and i think that will expand to health care, industrials and that will help broaden this market participation and that will help lift this equaty market for the foreseeable future. >> what if it doesn't broaden? what if it doesn't? what if the ai is the business cycle and look at corning today, right? as long as the tock is benefitting and that sector and others, why do you need to worry about whether it really broadens? >> first of all, i still like technology, to your point. that is still our favorite

technology sector. i think everything has driven buz earnings have kept pace with the rallies that we've seen with those stocks. i just think that if we go through the softness, and as we get on the other side of the summer, i think you will see the cars start to accelerate and in the rally that you're seeing with the particular tech stocks. you're starting to see paving the way for a rate cut in season september. is that helping to levitate the market or is that a sideshow? >> i think it's important that they do cut. our expectation is they do cut in september. i think they'll open the window at this july meeting. i think they'll discuss it in depth at the jackson hole meeting in august and would telegraph to the market that that is coming in september and i think it does have to come in september because if you look at

the economic forecast, you just completed second quarter and the quarter that we're in now and the gdp growth will be about a percent or lower. i think that will start to startle the fed and combine that with the fact that the unemployment rate has gone up .7% and i think that will get them to start cutting to make sure you don't get the slow business getting weaker and that will ultimately cause a recession, and i think that's the bigger part. i don't care if the fed cuts one, two, three, four, five times and i think it's more important that it broadens out to other parts of the market. >> absolutely. that's what i was going to ask, with signs of the labor market slowing and isms, is it unusual for the rally to keep going in those conditions? >> no, the fed brings down earnings -- interest rate, the more important point is like i said, what happens to the economy, and i think inflationary pressures, by the way, are coming down. if you look at what's happening this week, we're in the week of sales whether it's target circle days.

whether it's walmart having big sales. we have prime day coming up on july 15th and 16th. i think that will show the fed that inflationary pressures are contained, and that will give them the ability or flexibility to start to cut rates going forward. >> all right. the key pivot point, you like tech. you like industrials and that's a battleground and you're sticking with energy and healthcare. larry, thank you for your time. we appreciate your time. >> thank you very much. >> larry adams with raymond james. now that the far left has claimed victory it's calling for a new prime minister. we'll look at the implications for both europe and the u.s., but first, america's youth sports industry is estimated to be 40 billion and one company is using tech to simplify that experience and take things to the next level. we'll speak to the ceo of team snap next on "the exchange." ♪ ♪ >> this is "the exchange" on cnbc.

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>> thank for having me, kelly. >> private equity owned, right? >> that's correct. >> my first question won't be about the ipo. we'll talk about the nuts and bolts of the business. there is so much to schedule and manage in the world of youth sports and team snap is one of the main ways that parents can now do that. >> we have over 25 million users over 4 million on a monthly basis. the technology is twofold. one is consumer-oriented app which you and your husband are using to coordinate between the coaches, the family and the fans and then we have more of a small and medium-sized business to help the operations of those organizations that are providing the programming of sports, the clubs, the leagues which is traditionally kind of sas platform. >> as i'm using it, or honestly, as steve is using it, how do you make money? >> a combination of licensing fees, like traditional and the sas business and there is a

payments component of that, as you're paying for registration, fees and dues for your children we're taking a small processing fee off of that to help subsidize the cost overall and we do an advertising piece. there is a model through brands we are able to provide teams with a free use of the mobile application to help with the mobilization of the teams. >> got it. this has been around for a decade and there are others out there and how big is the growth in usage and how do you continue to get in front of more and more teams. >> we estimate the market to be 37.5 billion and that's growing up to $74 billion by 2030. >> so it's going to keep going. >> there's some of us hoping the whole thing has crested and we've seen the top of the bubble, but we're not even close. >> no. the genie is out of the model with the professionalization of youth sports and it is providing the industrial complex which is good or bad and there's an argument for both sides.

>> you said it perfectly, by the way. >> sure scale, you have 73 million kids under the age of 18 in the u.s. 60 million of them are participating in youth sports. you layer in the parents like you and i, coaches, fans and the volunteers and owners of the clubs and leagues and we think this is a market hitting well over the u.s. population and continuing to grow in size. in our experience it's not just youth sports and you've used it for the pickle ball league. >> for sure. anything youth, amateur or even adult rec leagues any time they're offering around sport and that's where the offering comes into play and we have one of the leading sports app behind traffic on espn. i'm sure one of the mandates is get the business as profitable as possible, kind of spiff it up, so to speak. talk about that and what the year might bring. >> relative to where the company

is on its journey is very important and we have the capital partner out of chicago and the growth-oriented market firm and we've not been focused on profitability and we've been focused on growth and heavily invested in technology to experience the coaches, the parents and fans and also to simplify and centralize all of the tools and providing a business that the sport would need which brought a sponsorship model that you see on the special and collegiate level which we've given back over $14 million back to youth sport organizations that are being provided by those sponsor ships along with the media platform called module sports. >> so interesting. >> when the pivot comes and maybe it's another private equity company. who knows? whoever that ultimate acquirer or ipo is and when you have to focus on profitability and when does that start to look like? does it change the user

experience or does it rely on advertising? >> no. we are three and a half years into the log capital and we'll be profitable going forward here. i think the big story is more of the consolidation of the space. there is a wave of consolidation 17 and 18 and we are on the cusp of being able to see that again and we believe we could have the blue chip asset to lead that consolidation, and you are right on the course of the ipo. >> very interesting. we'll be watching with excitement. you mentioned your little kid, as well. do you literally use your own software? >> all of the time. you arganicly -- it's a little bit of both. i kind of influence some areas and if you have over 4 million or a couple of million people on daily the app is everywhere. i don't always wear my team snap-branded gear to the field, and i don't want to do tech support all of the time, but it's always great to use the product out on the field. >> i won't tell the parents and

they'll be coming to you for tech support. that's the name of the game. peter, appreciate it. speaking of sports, don't miss scott wapner's exclusive interview with boston celtics' owner wyc grousbeck and it will be at 3:00 closing bell and mark your calendar for september 10th in los angeles. this is bringing industry leaders and visionaries from the spor sports and entertainment world, to register go to cnbc.com/gameplan. coming up, boeing reaching a deal with the doj to plead guilty to criminal fraud in the case related to the 737 max crashes. what it means for the manufacturer ahead with the shares down fractionally. "the exchange" is back after this.

welcome back. the s&p and nasdaq are coming off their best week since april. the s&p trying for its fifth straight day to start the month positive. that's only happened a dozen times since 2010. the russell, those small caps are also outperforming today up two-thirds of 1%. the dow is negative and boeing is a bit of a drag there. coming up, if there's one thing

the mark hates is uncertainty and we have politics this year. after the break we'll tell you what's going on in washington, france and the uk and we'll ask atlantic council ceo fred kemp what it means for wall street. "the exchange" is back after this. take care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed.

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♪ ♪ welcome back to "the exchange." elections both here and abroad are dominating headlines. megan cassella joins us with the future of president biden's 2024 run as the calls for him to step down grow louder from inside his own party. seema modi looks at what's next for france and the eu after voters fail to elect a parliamentary majority over the weekend and ahead of the nato summit in washington this week, jack kemp join us to discuss what this means for leaders more broadly. >> megan, it's been a busy couple of days. >> it sure is. president biden is kicking off a pivotal week to tamp down concerns about his fitness for office and welcome world leaders to washington for the nato summit. what is very clear at this point is the scrutiny on biden's every move and mood will be intense this week and he'll deliver remarks to kick off the summit and he'll have a solely press conference on tuesday and on friday he'll head to michigan for a campaign rally.

biden's role is to firmly put to bed the calls for him to step aside and he's gotten defiant and he called in to msnbc this morning to say thevoters have spoken and that he will be the nominee. >> i wouldn't be running if i didn't absolutely believe that i am the best candidate to beat donald trump in 2024. >> the biden campaign also just wrapped up a call a few minutes ago with donors and fund raisers. it was the second one they've held since the debate. biden himself took four questions from donors and a source on the call says that the president biden's message was that he's staying in, they need to beat trump and let's get back to work. there's universal agreement that the longer this lasts, the worse it is for the party. biden has made his plans clear and now it's a question of whether lawmakers and donors would let up their pressure. kelly? >> there has to be a significant pull of support behind him to go on this blitz and the media blitz and this blanketing blitz

to insist that he is available and lucid. is he the only one who thinks this is a good idea or is this the strategy, the party and perhaps some of the top donors are taking right now. >> he is not the only one who thinks this is a good idea and he is leaning on the polls that show that he is leading more than the other polls and he's choosing and it became clear what he wanted to pay attention to. he's not alone and there are still major donors who are still out there, and a lot of people in the party including some on capitol hill and some in capitol hill leadership who think that he is their best chance. they're worried anyone else would be too big of a distraction and they haven't been vetted and they haven't run and won against trump. it is very clear he's dug in now. the question becomes do donors and lawmakers want to keep making this the story or would they rather give in at this point and recognize that biden is the best chance to move forward and let the narrative

return to policy issues. >> i saw a mini blitz, a mini primary, kind of. i have to imagine this is all loose talk at this point, right? >> the blitz idea started circulating that among donors and fund raisers. it is just an idea. it is almost a pipe dream, but it shows how desperate democrats are to start moving forward so they put out this plan that would involve biden gracefully stepping aside, allowing for a five-week mini primary between now and the convention and the delegates get to choose the next nominee at the convention. >> time is of the essence if there is any prospect of that happening and megan, thank you very much. we appreciate it. the rnc is adopting former president donald trump's platform. eamon javers with the latest. >> what is clear is this is donald trump's party and it is a populist party. take a look at some of the rhetoric here around the economy included in this platform which the republican party released just within the hour.

they say for decades our politicians sold our jobs and livelihoods to the highest bidders overseas with unfair trade deals and a blind faith in the siren song of globalism. a burn of bullet points here and not a lot of spikes in the cut that we've seen today and some of the bullet points give you a sense of where the trump campaign would be headeded in a re-elected white house. one, carry out the largest deportation operation in american history and end inflation and make america affordable again. make america the dominant energy producer in the world by far and stop outsourcing and have the united states become the manufacturing super power. no tax on tips and that's something that the former president surfaced himself a week ago. keep the u.s. dollar the world's reserve currency and medicare with no cuts including no changes to the retirement age. cancel the electric vehicle mandate and cut costly and end

burden regulations. you see the economic highlights of the republican platform, it's a populist republican party trying to bring up former president trump back for a second term. we'll see whether wall street and the markets like what they're hearing because that convention begins next week. >> make america affordable again, and i think we'll be hearing that for sure. eamon, thank you very much. you bet. >> let's turn to fred kemp now as we weigh prospects for how the election can shape up in november? do you think biden can drop out or stay the course as he's trying to do right now? >> so, with all of the luck i've had in the markets i bet i wouldn't guess this one either. the fact of the matter is for the 32 nato leaders in washington this week, this is not an academic question. you've got war in europe and war in the middle east and uncertai

uncertainties around china, they're not quite sure who will be elected in november with what policy toward nato. you will not hear this on the agenda much this wreak that on the conversations in the side lines and they'll all be meeting with him this week and if he doesn't win will president trump take a different approach during the alliance with ukraine? this is not academic. this is about one of the biggest inflexion points since the end of world war i and world war ii. this summit was timed to be right ahead of the democratic convention. so president biden can show his global leadership it will be interesting to see at the end of the week if it turns out that way. >> to borrow a line from the media coverage here, it says biden is under immense pressure to demonstrate competence and coherence as he welcomes his

allies and partner in washington in the three-day summit. what is to come out of this? >> there is an agenda, one is deterrence and defense and there will be talk about how 23 countries of the 32 are over the 2% funding level for defense of gdp which president trump was so hard for, and not just president trump and others before him so that's good news. you have 500,000 more troops deployed by the alliance than ten years ago, and sweden and finland have joined the alliance and it is now 32. the second part is going to be ukraine, and there will be a lot of talk about a bridge for ukraine toward membership, but primarily that's about helping with training and helping them build up their defense space and helping them with their finances and sticking with them during this period of time, and then the third part of it is going to be about china and about the indopacific. you have inon do-pacific countries in australia and new zealand, japan, south korea and very important countries all

here to be with the president. there will be a lot of talk about the support china is giving to russia and its war against ukraine and how that has to be stopped. so i think there's going to be a real, fort to paper over differences because some allies would like us to be much more forthcoming about ukraine and membership and also about weaponry, and i think that will be papered over this week, and i think it will be a showing of unity during the course of the week and the real question is in the background where you're seeing autograph, china, russia, iran, more korea, they're working more closely than they were in the 1930s and that's just the reality that we're up against. >> and then we have the outcome of the french election s now. it aloud thelowed them to gain

political power. >> a surprise twist, france's left-wing coalition unexpectedly thwarted a far-right advance. when we saw in the marks ets cle lower. french stocks down 4.5% since the snap election was called in early june, but what's perhaps keeping investors more sanguine is the spread between the french and german tenure which ranged around 80 basis points, but a key chart to watch. the road ahead remains less clear. the european commission has warned the country that it needs to address the high fiscal deficit under the european commission rules france needs to present its new fiscal plan by september. however, without a clear leader in france, investors are questioning whether progress will be made and with this decision looming and potentially more ecb rate cuts, td securities and j.p. morgan are betting on the euro it hit 105 against the u.s. dollar this

warter and 103 by the next quarter. strategist mccormick said a trump presidency could put earnly put downward pressure on the euro and more upward pressure on the dollar as the tariffs, he says would be inflationary and that would be the prevailing view on cutting rates. >> the french have their own central bank and they have high deficits and it's on the economic front, obviously, and there will be clashes, it seems like international politics, as well. >> well, that remains to be the big question over the coming weeks, without a defitive leader how does france tackle important decisions around night owe and you you have a lot coming for the session and questions of how the country handles he's skiings without a government in place. ? ned fred, you woorned us that

there could be a hung parliament. >> i'm reading the headlines with a sigh of relief that the far right is not the majority and the far left is no bowl of cherries. if you're thinking about france with a 5%, you know, deficit, 110% debt to gdp,you know, one of the worst in europe after seven years of pretty good growth and pretty good economy under macron, you have probably three years of uncertainty, instability in the second largest economy of europe. that is not good news at all. so macron didn't need to do this. he didn't need to call the snap election, and i don't think he got the first case that he could have had out of it which is the far right with the prime minister, but he is going to probably have a hung parliament and have a lot of uncertainty and don't forget the parliament is responsible for the budget. how they do any cost-cutting and the hard things they'll have to

do to make ends meet, and i think the markets have got to watch this and start taking a different view toward french bonds and french debt and that sort of thing. >> although, fred, i was thinking in reading about all of this, was this a savvy move by him to call this an election because the rise of the le pen party seems to have galvanized is the center left government, exactly right kind of arl amount that more supports his policieses and voters will be less inclined to throw this, behind le pen. the more i thought about it, maybe this was a savvy move by him. >> time will tell and the issue really is, he thought even if le pen came in and placed a prime minister they would perform so badly between now and 2027 and macron cannot run again in 2027.

so it would be his party or people of his persuasion that would be getting elected. that's a pretty big gamble and european elections are usually seen as a protest vote. i think he could have shrugged it off as a protest vote so he did take his risk and my own view is he didn't need to and this is going to cause him more trouble than not having gone in this direction, but we'll see, and then what kind of deal can be made with the left and some people think he may try to shave off some of the parties of the left and put together his own coalition. i don't think the far left will have that happen and if it comes in, are they going to demand a program and will it be a democratic government that macron wants? there are a lot of unanswered questions right now. >> don't forget, we have the olympics coming up now which should be a celebratory event in france. >> so the last observation or comment is on the issue of ukraine and the left party, and

they tried to have the leftist coalition party, but this party seems to agree. russia must be stopped and ukraine must be supported and they want to recognize the palestinian state. on the issue of ukraine, what exactly does stopping putin look like, do you think, and how will that play into the nato summit this week? >> well, these few mocnths are the tough months because a lot of the weapons approved by the u.s. congress haven't arrived yet and putin may see a window of opportunity to escalate. when you see events like the nato summit and when you see events like the olympics, this is the first time it likes, and the short answer is we're better off in france with the far left outcome on ukraine and don't forget macron, the president for the next two years is the one that handles national security and foreign policy. so i think on that front we're okay. >> fred, always appreciate your time. thank you so much. >> thank you, kelly. >> fred kemp with the atlanta

council. coming up, shares of tesla are higher for the ninth straight session although they are paring gains and they're up since june 25th and that was two weeks ago and now positive yr de.eatoat a massive u-turn. we'll get a check on the other big movers next. care of it with gold bond's healing formulations of 7 moisturizers and 3 vitamins. for all your skins, gold bond.

welcome back. we saw the dow up almost 300 points earlier, but it is currently down 35 as we are seeing muted gains for the s&p with a four-point increase and for the nasdaq up 47 today, it continues to be a story about narrow leadership where we are seeing gains and the 10-year treasury drifting back to 427. in terms of the dow, let's take a look at boeing which is agreeing to plead guilty to the fraud charge of the fatal 737 max crashes. the u.s. prosecutors say the company violated a 2021 settlement that shielded it from prosecution. under this plea deal boeing will pay a fine of $244 million and

invest at least $455 million in compliance and safety programs. an independent compliance monitor will be installed during a probationary period of three years and by the way, this deal does require the approval of a federal judge. it will meet with the victims families, and a third of boeing's revenue came from its defense, space and security unit. we'll talk more about the plea deal next hour with phil lebeau. for now shares are up half a percent on a 28% decline year to date. coming up, kathy hochul's tabling of congestion pricing in manhattan. it would have raised more than a billion a year for the city, but this decision could have big implications for the muni market and that's next on "the exchange."

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for more watching and less spending... x marks the spot. do it all on the network made for streaming, and bring on the good stuff. welcome back to "the exchange." high-yield muni bonds have been suddenly outperforming corporate equivalents so far this year. hyg, meanwhile, is basically

flat. my next guest says he expects this to continue as well. joining us is craig brandon. welcome to you. >> his, kelly. >> interesting juncture to check on in on this. what's going on in the muni side of things? >> corporate credit is very stable, right? you still have some covid money on the muni side. it's starting to run down, but overall, the muni credit side is very stable, but very much driven by classic demand-and-supply technicals right now. >> just aren't going to get the expected funding i think the mta

is more of a unique space, obviously, but we live with politics. it's just part of our day-to-day operation. i think that's more of a one-off. at the end of the day, there are some credit issues out there that you see on occasion, but i think overall the state of muni credit is table right now. >> i think everybody watches the mta very closely. i think at some point there will have to be a resolution to it. listen, the mta is a vital piece of new york's infrastructure. >> what would the resolution be? if they're not going to get a billion -- what other options? >> they already have a lot of debt. i do think that at some point there has been to be a resolution on congestion prizing.

a billion a year is re large. >> do you think they'll be forced to implement some tine of version of that? >> i think at the end of the day there will be some version of it. >> the line goes, if you want less of something, tax it. if you make it more expensive to go into manhattan -- thefewer idea is that lesser people will go, but i don't think that's good for long-term vitality. >> weft to decide whether to spend money on critical infrastructure or not. if you look at other parts of the world, if you look at their public transit, there's much more investment in public transit and infrastructure in other parts of the world. other parts of the world are often more expensive to live in and have higher taxes, so in the united states, we have to decide if with i want to invest in infrastructure, and if we are going to invest, how do we fund it? congestion pricing is one option. >> i feel like we're just a car country, and the opportunities for projects are so massive. look when they try to extend the

subway lines or light rail, tax an munis are considered infrastructure projects in other parts of the world. in europe, solvency, too, and you get insurance companies and other parts of europe on the taxable side. oy go to asia twice a year. they consider munis infrastructure assets. we finance or infrastructure in the united states in the muni market. we're the only country that does that. and it sounds like maybe to our

detriment. what kind of yields can keep get without their capital being too much at risk. there are a lot of opportunities there's double-a, triple a, which on a taxable basis on the highest tax bracket, that's over 7%. for a new york city resident, it's %. >> even without congestion pricing still going to be okay? >> still going to be fine. >> thank you so much. we appreciate you coming down. craig brandon from morgan stanley. that's it for "the e isan." tileure is getting ready for "power lunch." i'll join him on the other side of this break.

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♪ now the tree has roots that need water to grow ♪ ♪ grow jobs, grow skills ♪ ♪ make the whole world go. ♪ ♪ make the green grass grow all around all around. ♪ ♪ make the green grass grow all around. ♪ at jpmorganchase, the investments we make help make businesses happen, that make jobs happen, that make communities happen. together, we make momentum happen. good afternoon, everyone. we're glad you could join us. stocks have been losing ground throughout the day. right out of the gate, they looked good, but now off the best levels. >> the record highs were driven by, what else, big tech. amazon, apple, and meta hitting new highs. apple hanging onto the gains