>> stef? >> truist financial, my latest buy. they beat earnings and revenue, trading at 1.1 times book value. >> and you don't even worry about interest rates on that one? >> i do not. >> there you go. that does it for us. "the exchange" with kelly evans starts right now. ♪ ♪ >> thank you very much, dom. welcome to "the exchange." i'm kelly evans. here's what's ahead. we're in an early bull market, an early bull market says my next guest, calling it the most unloved bull market she's seen in her career, presenting a lot of opportunity. we'll talk about what she's buying. and she's a tesla shareholder, a stock she says you buy in times of chaos, with musk getting more political is one one of those times? we'll ask her if she's adding to that position. and a credit card backed by your home equity line of credit.

we'll have those details. let's get to a quick check on the markets with stocks not moving so much. if anything, we're unwinding some of last week. dow, down 33 points at this hour. s&p, fractionally higher and the nasdaq adding 15. so if anything, a reversion back to the previous leadership with big tech, the ten-year hovering around 4.23. tesla and alphabet with earnings after the bell. and keep an eye on yields, as well. the two-year auk ction is undery this hour. it's been a little better tone lately for treasuries. oil is also slipping, down more than 2% to its lowest level since mid june. you can see this 1.5% decline, brings us back to the 77 level. a few names on the move right now, including ups hitting a new

52-week low, on pace for its worst day on record, down almost 14% today. an earnings miss and full-year guidance cut. spotify, meanwhile, sharply higher. earnings and revenue in line, but guidance topped expectations and the modernization efforts gained traction. shares up 11%. we heard a lot about this one on the show lately as people debate it. a good earnings period early on. so the major averages on pace for an eighth positive month in nine and my next guest says we're in an early bull market and seeing opportunity because of that. let's bring in nancy tangler. nancy, great to have you here. explain why you think this could still be early, when it feels if anything, like it's past its course? >> well, i think, kelly, thanks for having me. i think that if you look back historically, bull markets last somewhere on average over 1,000

days, and we're about 640 days into this one. but if you go back even further and draw the analogy i've been drawing for the last year plus, this feels very analogous to the 1990s. there are differences to be sure, but there are a lot of similarities, not the least of which is productivity, which, you know, rest of world compared to the u.s., we just hit a historic high within the last 25 years, just measuring the last 25 years. so productivity, i think, will continue to drive earnings. earnings will drive stock prices, and that's why i think we'll continue to enjoy the bull for a number of years. >> it almost feels like we don't have to worry about the election or -- the levitation of small caps on better inflation and fed rate cuts, you think that has legs to it? >> you know, i'm probably a minority here. i may likely be wrong, but i looked at small caps over my career over many periods. over the last 20 years, they have turned about half of what

the s&p has returned. so you get these trading opportunities, but you don't get really what i would call investment opportunities. we manage tax exempt but also tax classes, so we're looking for three to five to seven-year solutions. if the earnings aren't there, they will benefit from lower interest rates and better regulatory environment if, in fact, you want to talk politics if the trump administration takes hold. but in general, i think there's just better places to be. >> and i think that is right, in terms of how that fits into it. where does that give you the strongest conviction right now on the names of best earnings potential? does it tilt towards big-cap tech or what does it look like? we haven't talked about the consumer much at all lately. >> well, we own spotify, so it's a tale of two consumers. we also own pepsi. so you're getting very different stories. but i guess i would say that

large-cap growth at a reasonable price is where we're sort of pitching our tent. the economy is slowing, we think although the gp never expected it to be 2.7%, but we are slowing some, so you want to continue to like the reliable growers, which includes technology, but also a number of other areas, sectors, and just specific stock names. and so that's really where we're focused. high quality, earnings growth, cash, cap free cash flow, and our theme, which is old economy companies, which are pivoting to digitation robots and generative ai, cloud computing, and then the suppliers of those picks and shovels. >> maybe this suspeisn't the ri time to ask about tesla. shares are up since the last quarter. you say it's a stock you want to buy at times of chaos like the

pullbacks we seen earlier this year. >> i was on your show on the last earnings report. i felt like the spokesperson for tesla, the stock is up about 75% since then. >> i remember that very well. everyone hated it at the time. no, listen, i think they're fine. >> yeah, and we took about a quarter of our holdings off the table. luckily before the announcement of the robo taxi delay. i think first of all, a trump administration, though, cost of evi evs will be positive for tesla. we saw gm's numbers today which were great. so the subsidies being removed will hurt gm and ford more than tesla. so you want to look at any guidance on fsd and the robo taxi. so one last thing, i was in a

uber last time in new york. my driver got out and had a bite to eat, so i thought, that's it, i'm doing robo taxi next time. >> okay. we have a two-year auction to get to if you'll sit tight. rick, what do they tell you? >> well, first of all, we should cue "twilight" music. this is the strangest auction in years. the two-year came in 69 billion of them at a yield of 4.434%. well, well below one-issued market, hovering around 4.46. so it stopped through well over 2.5 basis points, priced excellent. and well, here's the odd scenario. if you look at the bid-to-cover, it was 2.81. the best since august of '23. if you look at indirect bidders,

76.6%. i have over 20 years of auction results. i can't find a higher one. i believe that would be an all-time record, which is really difficult for an old issue like a two-year note maturity. direct bidders, exactly the opposite. 14.4%, that's the weakest since jan of '22. i gave this auction an a-minus. otherwise, it would have been an a-plus. and the dealers take 9%. i can't find a smaller takedown of dealers this the history of two-year notes. of course, what that means is investors were very aggressive. so if we really put a face on it, the weakness was in direct bidders. that's like insurance companies, pension funds. they've been going wild on the longer maturities, which matches their liabilities, and on this auction, think fed. the thing that foreign entities

were so aggressive, they're expecting a rate decrease, a cut in rates. now, whether that means july is on the table for some investors, which i would highly seem unlikely, or they're just all-in on september. but either way, the fed helped this short maturity auction ride really aggressive over the finish line. back to you. >> all of our problems are solved, rick. you heard it here. thank you very much. rick santelli on the auction results. senator schumer and representative jeffreys are speaking right now. let's listen in to see if they will endorse kamala harris. >> to do so from the grassroots up, not top down. we deeply respected that, hakim and i did. she said she would work to earn the support of our party, and boy, has she done so in quick order. vice president harris has done a truly impressive job, securing the majority of delegates needed

to win the democratic party's nomination to be our next president of the united states. the vast majority of my senators quickly and enthusiastically endorsed her. so now that the process has played out, from the grassroots bottom up, we are here today to throw our support behind vice president kamala harris. i'm clapping. you don't have to. >> again, that's new york senator schumer. he and jefferies, we can expect, are throwing both of their support behind kamala harris to become the presidential nominee. emily wilkins is standing by. equally throwing their support behind harris. wow, are the dollars pouring in, $140 million at last count. that compares to the biden compare raising $100 million in a month, and they have done that 50% more in like three or four days time. >> reporter: kelly, everyone up here on capitol hill has taken

notice of that number. the folks who i've been speaking with today, the lawmakers, when i asked them about the down ballot races, how this impacts the race for the senate and the house, the one thing that i'm hearing from folks consistently is you have to look at the money. people are shocked and surprised, pleasantly so for democrats, at how much they have brought in. house democrats met for the first time this morning since everything went down. members who were in the room told me it was positive, it was energetic. listen to what a former majority leader steny hoyer told me. he's worked with some of these front liners before and said there was a lot of energy today. >> there is a lot more energy in the country. i think there's a lot more excitement in the country. i don't know that i've ever seen so much money in small sums contributed over such a short period of time. since hearing that vice president harris was going to be our candidate for president. >> reporter: of course, all of that fund-raising, all of those

donations, they don't just go to harris, but they also trickle down the ticket, they go to senate, they go to house members. so that is incredibly keen so that democrats have a shot of taking back the house and holding the senate in november. you have seen harris now get the number of delegates pledged to her that she needs since that nomination. one of the interesting things we'll be looking at here, democrats said they didn't want this to be a kor coronation, th harris needed to earn it. so everything that's happened so quickly, the good news for democrats, they're united. the challenge is that you'll have to see how they kind of parse this idea, do they have an open process, did they look enough to the voters just because of how quickly everything has happened. so that will be a very interesting thing to watch. of course, as we go through the next couple of weeks into that democratic nomination process in chicago. >> yeah. emily, we appreciate it.

thank you. emily wilkins tracking that for us. nancy, we made a lot out of the implications either administration could have for stocks. but i wonder, you follow the politics more than anyone. how important are the results of this election really for the market? >> kelly, i'm not convinced they're all that important. i'll probably get hate mail on both sides. i think one of the things you have to remember, we heard about the trump trade after the republican national convention. during his first term, i was one of the people that said technology would be to the trump administration what energy had been to the obama administration. thankfully, we stayed long our technology stocks. if you look at what worked during his first term, it was not the xle energy stocks, they were down 28%, skewed by covid, of course. but underperforming the s&p. financials, thanks to deregulation were only up half as much of the s&p. what was the standout? it was technology.

so what we'll hear is a lot of rhetoric. there will be short-term volatility, which creates opportunities for investors that want to buy high quality companies at cheaper prices. i would be focused more of the supreme court ruling in the chevron case that gave the power back to the courts. >> is that mostly in the energy realm, or does it make you want to be long there or elsewhere? >> i think it's across the board. what it will do is keep regulators from making decisions that they were given the benefit of the doubt on before, helping small business, as well as financials and other aspects, energy, but other sectors of the economy. technology too, as well. >> it's true. nancy, thanks for joining us. we appreciate your time. >> thanks, kelly. politics in washington also affecting tech deals, we think. let's talk about it.

cloud security wiz telling employees in a memo they'll return to the original plan of pursuing an ipo, including anti-trust concerns as a reason for walking away from the deal. steve, i don't understand it. >> it must be tough turning down that money. this is a win for the doj and jd vance in there, as well. wiz stepped away from google's $23 billion offer because it was concerned regulators would block the deal. instead, it will continue with plans to go public. that's what kanter of the doj want to hear, even after losing some cases, they also say their aggressive stances against mergers have caused many companies to think twice about making those large acquisitions in the first place. they would rather see the smaller companies stay independent and go public as wiz intends to do now. in a 2023 letter, khan wrote --

>> nvidia tried to buy arm holdings for $40 billion, and after that fell through, arm had its own ipo and has a market cap of $175. wiz is valued at about $12 billion, so google was offering a hefty premium. he told his staff, it was hard to turn down that offer, because the -- but the ipo is still going to be the plan. now the question is, kelly, how f big is an ipo going to be? >> why did this happen so quickly? it's not like six months passed. nothing changed. you could argue the only thing that happened was jd vance becoming vice president. >> or the crowdstrike thing may have played it into a little bit, staying independent from go google. or investors wanted more. they think this company is a real winner.

the ceo said they're running on an annual run rate of a billion dollars this year. so they think there's more room to grow, so the investors are saying $23 billion is nice, let's go for a hundred. >> it's not like the ipo market has been that exciting. >> it's been a funky time. the ceo was on our air a year ago and said the exact same thing. they're looking at the market. they know the timing is not right, so they're looking at this deal. >> fascinating. do you think that this tells us something, is this -- if this is what they wanted, does that reveal a weakness? >> you mean google? >> yeah. >> they've already bought mandia as a cybersecurity play. we'll hear more about the results this afternoon. and so much of that is tied to ai, but as we learned last week, the cybersecurity companies are incredibly important to the cloud companies. microsoft has its own product. crowdstrike before last week was

well regarded in this space. this is another one that people really like and respect and think it has a good product. so we'll see. but google really needs to have more cloud offerings to compete better. they are competing with amazon and microsoft to a degree, but -- >> does it put other cybersecurity companies in play or was this unique? should crowdstrike be in play at a big discount? i'm not sure. >> that is super unclear. but these regulators don't like seeing -- at least the current regulators, don't like seeing these kind of deals. they want these companies to thrive on their own if there is a path forward for that. we see that happening with wiz potentially. >> i wonder if they say no matter what happens in november, we might not get that much more of a friendly -- >> cybersecurity doesn't matter what administration is in power, it's important. and every company needs it. >> steve, thank you. we appreciate it. coming up, existing home

sales dropping to their slowest pace of the year, but inventories at the highest since may of 2020. does that data signal a shift toward a buyer's market? we'll ask ivy zellman next. and the mag seven have dropped five. should you buy the mega caps on the weakness or is the rotation here to stay? we'll debate when "the exchange" comes back. >> this is "the exchange" on cnbc.

the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker.

oo this is a good book title. welcome back to "the exchange." existing home sales falling more than expected, high interest and low inventory. sales dropped 5.5% to a rate to just under 4 million units. the median home price soared to $427,000. incredible. the second straight month of record highs, as well. but there are some signs of normalization. let's ask ivey zelman. it's great to have you to explain this wonky housing market. is there a change? i see more for sale signs. >> thanks for having me. it is a wonky market. never have we seen volumes as low as they are and faced with very strong home prices. i think affordability remains stretched. the good news, though, mortgage

rates have come back down a notch, call it 25, 30 basis points, which equates to a 3% decline in price. with that, though, we're still at about 20% above trends line. so i think we have a ways to go. inventories are rising, though. the reports show that inventories increased 23% year over year. last month, they were up 19%. and there are markets that are up substantially. markets in florida up 80%. denver up 80%. there's lots of markets seeing significant increases in inventories, which makes it more likely you'll be in a buyer's market with more product available. >> that's something i've seen anecdotally, as well. people are sharing their zillow maps saying look at all the new listings. so denver, is it starting to become normal or even high? >> actually, it was up 70%, i got that one wrong.

you're right, it is still on a relative basis fairly low. i think when we compare it to precovid inventories are still pretty low. what we need to see for the market to get to a healthy level, inventories need to continue to rise. but with the markets up 70%, 80%, they might be above where we were precovid. so i think that's a bad thing. i think we need more product availability, so people can actually go somewhere if they sell their home. people are disincentivized because they're locked in at a lower rate, but where are they going? >> if we see falling rates, improving affordability, people think maybe there's somewhere to go because there's more inventory. so falling rates mean falling prices or squishier ones, where higher rates mean higher prices. so it wouldn't have made sense 15, 20 years ago. i don't think what you think where that leaves prices today?

>> prices did decelerate, and we expect further deceleration as inventories rise. in the southeast, southwest, those markets more so than the midwest and northeast, where there's more new home construction, we're seeing more competition, because they do have alternatives. i think the builders are continuing to start a lot more homes. and they're incentivizing. the premium that a new home used to warrant was call it 25% in some markets, 15%, 25%, that premium is gone competely, and they're on par with existing homes. so builders are offering more value, meaning the existing home seller will have to come away from their aspirational asking price and will have to reduce if they want to buy that new home. >> what level of mortgage rates do we really see a sea change in the market? i'm not sure if it's 25 or 50, so, you know, do we need the

ten-year to come below 4? what rates do you think are significant? >> well, we think about call it 50 basis points kind of equates to 5%, 6% decline in home prices. so call it now on new homes are a little better, call it 15% above trend line of existing homes, 20% above trend line, we want to see rates come down 100 basis points, hovering below seven right now. so if we have five handle, the market can see more momentum. i think many people that are locked in again, over 80% of homeowners that have a mortgage locked in below 5, so that disincentive in thinking i don't want to give up this low payment i have does give some pause. but now when they see it's not that much different, i can think about moving and it doesn't feel so bad. >> that's interesting. so full point of cuts is where we could see a bigger change. last thing before we go,

contrarian, you know, favors new jersey, all the rest of it. the san francisco fed has just done a little study suggesting that migration from colder parts of the country to the sun belt is slowing. i've heard this in reits and certain real estate markets, this idea that climate change will make the south so hot people will move back. do you think this could ever possibly happen? >> well, i'll get on my soap box, because i do agree that could happen. in fact, the migration has been slowing. we just saw a report that showed a double digit decline in '23's number, people that are moving, obviously taking a moving truck. i don't think that's necessarily associated with climate change, but i do believe as we start to see more storms, the market that unfortunately, the texas market just experienced beryl, there were commentary coming out saying people are contemplating leaving with respect to markets

that are hot. if i'm living there, and i can't take my dog out for a walk, it's problematic. so i do think that markets in the midwest that are more affordable, that are enjoying 80 degrees and beautiful summers while other people are boiling, might become a lot more attractive. >> new jersey, could we be in the mix? if they cut property taxes by 70%, there is a chance? >> cleveland, ohio is a good opportunity. >> all right. ivy, a story to be followed for sure. that's interesting. maybe there is a change going on there. thanks for joining us today. >> thank you for having me. with home prices at record highs and still rising, the equity in homes is gaining, as well. it's amassed trillions of dollars, but high interest rates have kept the loan market quiet.

diana olick has more details. home equity, credit cards, a match made in heaven. >> home equity is at an all-time high. the average home own we are a mortgage gained $28,000 in equity just in the first quarter of this year than the year before. that's the highest number in two years. so what if you could tap that home equity with a credit card? aven, a san francisco based startup that just reached unicorn status, launched such a card. that draws on your home equity. the interest rate on the card is anywhere from 8% to 15%, which is far lower than the typical credit card, which can start at around 18% to 20% in interest rates. i spoke with the company's ceo about why you would choose this instead of a traditional one. >> you're able to get an aven helock for zero dollars in every

single state we operate by just going to aven.com. in terms of the accessibility of the product, it's better. you can take our card at get 2% unlimited cash back, which no other provides today. >> we remember during the last housing boom in 2006 to 2008 when people started using their homes like atms, doing cashout refinances. that ended in the biggest housing crash in history. but he argues things are very different now. >> in 2007 and 2008, during the crisis, home equity was irresponsibly utilized by banks and consumers in various ways. the two big things that changed in how access to home equity evolved over the last decade or two is, a, we developed much stricter underwriting guidelines as an industry, not just aven, every mortgage banker in the united states developed stronger and more stringent underwriting

guidelines. secondly, we all developed more responsible practices around how much home equity consumers can access based on their cumulative loan evaluation. >> not everyone will qualify for this card, which has an up to $250,000 limit, aven partners with coastal community bank, which issues the visa card. there is a fee if you want to take cash out, but it's interestling. >> you can feel the tweets coming at us. can people use this for like going out to diner? >> yeah. you can use it for whatever i want. i asked him what people were using it for most. he said larger ticket items like lowe's and home depot were the biggest charges, because that's where you get the biggest benefit or the 2% cash back. dinner isn't such a big deal that if you have a 20% rate on the credit card, you'll pay that

back. and also debt consolidation. that's a big one, because we see people do that on credit cards sometimes, but they look at a 20% interest rate versus a much lower one on the home equity. >> would you use this option? >> look, i think it's interesting. i think there's always risk to the consumer, but this seems less risky, when you look at the underwriting and the loan values. their combined loan value was 66%, which is very reasonable. they're looking at people who might have higher priced homes with a lot of equity in their homes. so if you're going to have that lower interest rate, why go for 20% on a regular credit card when you can have 10% on this one? >> thank you for bringing us this story. diana, thank you. still to come, visa, general dynamics and end phase are on deck with results. that's coming up. don't go anywhere.

business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

welcome back to "the exchange." joe biden is headed back to the white house from delaware this afternoon after testing negative for covid. according to his white house doctor, dr. kevin o connor, said the president is cleared to resume his duties and will be monitored for any relapse. the pentagon is concerned about increasing cooperation between china and russia in the arctic. in a new report for the region, military leaders say russia has reopened hundreds of soviet era military sites, and china says it intends to build a "polar silk road." the report says both countries are working together to develop arctic sea routes as the ice recedes. taylor swift's reign on the billboard charts is over. eminem's latest album "the death of slim shady" debuting at

number one. the only album to stay on longer is stevie wonder's 1976 masterpiece "songs in the key of life" which spent 13 weeks at the top of the box office. >> this was a 30-minute discussion in the office yesterday, but i learned about brat and charlie, you know -- >> i'm still trying to figure out brat. >> thank you. and yeah, so bertha, thank you. let's get to a market flash on disney. julia has that story. julia? >> kelly, one of disney's largest shareholders sold his entire position of 25.6 million disney shares according to a report in "the wall street journal." he says he sold his stake after

a shareholders voted in favor of disney's slate for its board of directors. this was a defeat of his support for nelson peltz. he said he sold these shares because he doesn't have confidence in disney's current management and expects the share prices to decline further. disney shares are down around 11% in the past month, but we'll learn more about what's going on as the company reports earnings august 7. back over to you. >> under pressure. julia, thank you very much. still to come, should you trust the rotation out of tech and into small caps? our next guest says yes and has kedvtaintoof names he's usg ta aange of the trade.

energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. energy fuels.

welcome to the now way to network... they switched to juniper's ai-native network. now everyone's so productive, they're operating at a higher gear... now their network is self-configuring, self-detecting and self-healing. so their it team deals with up to 90% fewer network trouble tickets. (sonic boom) whoa, what was that? just the sound barrier. that's the now way to network at work—with real ai—putting you in the fast lane. (♪♪)

welcome back to "the exchange." the russell 2,000 is outperforming the mag seven by 15% over the past couple of weeks. my next guest says don't worry about the past head fakes. this shift is real this time. here onset is the chief market strategist at mai capital

management. i don't know, when you say it, i take notice, tanks to your tesla, verizon pair trade call, the famous home builders call a couple of years ago. what is the pervasive case for why this is true? >> there's a couple. first of all, the percentage move, 15% difference in two weeks is a big deal. but more important, the standard deviation of the move, how different is this to what's happened before? it's huge. and the small-cap area, it's the biggest. it's three standard deviations away from norm, so we're talking about a generational event. that gives me confidence that, look, i don't think the value index, the small caps are going to go straight up, but i do think we've come to a critical turning point. >> a lot of people identify the catalyst as that cp ireport. we had had better cpi reports for months. why did this one break the dam? >> sure. i'm not sure if it was the cpi

report. when you look back in march of 2000 or whether it's the bottom in march of 2009, you never really know what the reason is. you know there's a lot of dry kindling and that the pendulum has swung so far toward a top heavy market that, for some reason, it always comes back. maybe it was the cpi report or bond yields changing. there's lots of reasons, but it's happening. >> what are the investment conclusions? is it almost as simple as the rally could keep going? you don't have to care whether it's small caps, but a broad basket of caps, because something -- but then i think about march of 2000, that was more of a signal of a dot com crash. >> right. there's two things that give you confidence that it's not too late. just look at the fat s just look at the ftats. this 15% move is terrific, but there's 25% difference between the equal weighted s&p and the market cap weighted s&p since

the beginning of last year, even with the current move. so there's lots of room to make it up. so the second thing is that it just takes a little bit of money moving away from these mega caps in order to make a huge difference. you know i like hershey's. so you take 1% off of microsoft, you can buy an entire hershey's. that's the kind of magnitude of the move. they have gotten so top heavy, even 5%, 10% of those can really make a difference in the small-cap markets. >> what are the specific areas where you think there are maybe stock specific stories, things that can do well right now? >> i call them the left behinds. stuff that wasn't caught up in the tech, ai bubble. >> the rise of the rest. >> right, exactly. so they're great companies, but capital, like it did in the internet bubble, got sucked away towards tech. so hershey's would be a great example. airbus industry, the your pelan

manufacturer, is having supply chain problems in the long-term. you have united health group, suffering through an election year. again, it's playing the same wave. and take two interactive, which is going to come out with grand theft auto. it's a variety of lots of different stocks. the commonality is they haven't been caught up in the ai boom. >> so you think this is the catchup of the rest. it doesn't have to be a call on energy or financials or anything like that. >> my favorite way is equal weight versus market cap weight. the equal weight stocks have languished for 18 months now, and historically, equal weight actually outperformed the larger stocks over a 35-year period by an average of about 1%. they've underperformed over the last 18 months by over 25%. >> should i put equal weight in

the 2401(k)? >> i'm not telling you what to do, but the pendulum swings and always comes back. >> quick last question, what happens with the mag seven? the reason why i'm so sympathetic to their outperformance, look at the earnings differential. first quarter, they were up 84%, the rest of the market 5%. >> i don't want to leave your view wers thers with the thought like the mag seven. the problem is, theyjust sucked up too much capital. my thought is stop overweighting them, stop even equal weighting them, take some money off the table and get to the other folks before the market really shifts that way. and you can make some money. >> i think you made a persuasive case. thank you so much. appreciate your time. much more ahead. shares of southwest, the faa is launching an audit of the airline following a number of potential flight safety incidents. shares down 2%. southwest says they're working

closely with the faa and have an exceptional safety program. and the department of transportation is investigating delta as the fallout from friday's crowdstrike outage continues. delta have canceled over 5700 flights since friday. outnumbering the total cancellations they had in 2018 and 2019 combined. shares are flat, but down 2% since the outage. and a check on the day's other big movers, next. - custom ink helps us motivate our students with custom gear.

we love how custom ink takes care of everything we need, so we can focus on the kids. - [narrator] custom ink has hundreds of products to help you feel connected. upload your logo or start your design today at customink.com

welcome back. we're watching the potential election impact on the consumer. we're also keeping an eye on semiconductors, which are broadly lower today with nxp the worst performer after earnings, down 9% after giving softer than expected guidance citing weakness in automotive side and growing competition in china in the wake of increased restrictions in the u.s. flip side of supermicro set to snap a six-day losing streak down 13% in that time.

semietf broadly down 1%. coming up, the trading on payment, plans. we're back after a short break. 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

team usa is back! let's see that enhanced 4k from xfinity. wow. everything you'd want is right here when you say... “olympics” so, what if your favorite athlete is... "grant hollowa”" nice. or you can't get enough... “swimming” definitely adding that to favorites. now let's check... “medal coun”" and when is gymnastics on? “olympic schedule” it's that easy. find it, see it, count on it with the best seat in the house. get the fastest connection to paris with xfinity.

♪ welcome back. we're going to gauge a little bit with the upcoming election could mean for the consumer also for defense and green energy in today's earnings exchange. the action, the story and trade on visa, general dynamics we're joined by victoria green. founding partner and cio and cnbc contributor. victoria, great to see you. we have a wide range of company -- after what happened with u.p.s. today, anything could -- xp, some big movers. visa is tomorrow. the shares are flat amid a murky consumer picture, fed rate, analysts seeing how it could fair under different administrations. what do you do with this stock? >> visa is one i like, kelly. i think there's a lot of upside to the stock on the heels of what amx had to say. the consumer might be not be dead. 9 billion. we're expecting payment volumes

to be good, up 8%, more internationally. u.s. up only 5%. but for us we look overall that visa ha a lot of upside sale. the stock suffered in q2. it's a way of a cat talyst to t 280, 290 area. we anticipate management will deal with that and the commentary. their big settlement, anti-trust with mastercard. it's back to square one. it's good to point out, that's been going for 19 years. they have to go back to the drawing board, might be 19 before it gets settled. >> 280, maybe 290 from where it is currently. do what earnings do to help or hinder that. next up is general dynamics. on pace for the ninth positive month in 10. benefits most from increased presence in the indo-pacific region because of the naval contracts and new gulf stream private jets could be a secular benefit. do you like this? >> i love general dynamics. not just about defense spending. huge aerospace with the g700

just getting faa clearance last quarter. we expect them to deliver about 40 airplanes last quarter. maybe 38, maybe a little light on delivery. the g700 looks to be a high margin, very high volume plane for them. you pointed out, submarines, these contracts are long lasting. you read through the earnings, subs they're building now, they have to continue to operate in 2080. these things take a while to build. they have lots of contracts for these. and they continue to win more and more contracts. but also point out combat systems, one of the highest margin segments looks to continue to grow and be one of the fastest growing segments the abrams tank. combat vehicle. it's estimated that ukraine is using about 6,000 to 8,000 rounds a day between ukraine the conflict the middle east and restocking the united states. we see that as a huge catalyst for earnings growth there. i think general dynamics can finally get above 300 and move higher. >> a friend of mine works in ammunition making. and talked about just how much

they're strapped. end phase, it's been a tough year. do you think it's worth picking up here? >> no. i don't think the bottom is in on residential shoulder. solar will get a big bump up from rate cuts. slow and steady rate cut. how much is 50 bases points help solar companies? i don't see the bottom in on residential. this stock is bouncing around 100 to 120. i don't buy it. i think it could push lower. residential solar, it will come back. second half. i don't see the demand being there necessarily. this one, sit it on the sidelines and not expecting -- i'm sure they'll have rosy projections for second half of this year. i don't think it will come to fruition. >> danielle shea was one of the residential installations, never again. i take that as a data point. thank you for your time today. really appreciate it. >> thanks, kelly. >> victoria green. that's it for "the exc exchange." "power lunch" picks things up on the other side of this break.

in a world of data, people are accessing critical information quickly and securely. that's because cdw architects are building infrastructures with unified data storage from netapp. with the flexibility to run workloads across any environment, providers experience less downtime, giving them more time with patients. make amazing happen. netapp and cdw.

♪ welcome to "power lunch." alongside kelly evans, i'm jon fortt. it's a swing band in parade. a ton of names moving on results with even bigger ones on deck and we'll hit them all. we're taking social queues. the event on even's mind. president biden choosing to not seek re-election and how did he mark this historic announcement. an oval announcement address? not ye