the capital market activity will pick up. >> mid cap stocks. >> jim? >> exxonmobil. less than 5% from an all-time high. >> great quarter from seagate. >> one more look at the markets. again, we're seeing a rally on wall street. the dow was up over 800 points that. does it for us. "the exchange" starts right now. big rally to close out the week, frank. thank you. welcome to "the exchange." i'm kelly evans. here's what's ahead. the longer the fed waits to cut the more they risk that something breaks. that's what mark zandi has been warning. we'll ask him if next week is a break week for the fed. and clients include big mega cap tech names like nvidia, and our guest will join us with the

shares down 2%. china weakness a central theme and headwind for earnings season. one guest says if you want to invest overseas, there's one trade where she sees a lot of opportunity and is here to tell us where. let's start with dom chu with these eyebrow raising numbers. >> it seems as though for right now, investors and traders have bought the dip, especially in the large cap technology space. let's look at the broader markets. the dow is outperforming. it's up 810 points, near the highs of the session. 4 the s&p 500 inching back towards that 5500 level, up 86 points of its own, good for a 1.5% gain. and the nasdaq, good for 1.5% gain as well, up 265 points to 17,445. that last trade there. it is a big day for big moves. not necessarily in names in big cap technology, but check out

these ones tied to earnings, all about accentuating the positive or negative in regard to revenue. corsaira is up 45% after reports results where revenues topped expectations, something to keep an eye on. dexcome, diabetes company, that sort of thing, they miss on revenue and lower their full-year forecast, leading to a 41% drop in that stock. and the dow outperforms today due a good amount to what's happening with 3m, up 20 points, good for about 150 points to the upside for the dow, now up after an earnings beat, a revenue beat, and they raised the low end to have full-year profits, leading to outperformance. an interesting commentary out of 3m. they are seeing weakness in

consumer spending retail end markets. a little bit more mixed for industrials but more demand for electrification type products, and that's the reason why that particular stock is moving higher. back over to you. >> i love the 3m bill brown story. the personal consumption expenditures price index, or pce, it rose 2.5% from the year earlier. the core was up 0.2% and 2.6% on the year. so roughly in line with expectations. the markets are fully pricing in a chance of a cut in september and afterwards. but yesterday, richard burnstein told us growth isn't slowing enough, citing leading indicators like jobless claims. joining me now is mark zanldy,

chief economist, and steve liesman with us, as well. mark, i'm so glad the dow is up 800 points right now, because this is exactly the argument that burnstein and the hawks would say why the fed should be careful about cutting rates here if the economy is strong enough, maybe it's handling rates where they are just fine. >> well, i have a different interpretation, kelly. the market's up because they think the fed's going to cut rates. i think as you pointed out, 100% probability of a rate cut in september and today's data just puts that into cement. so i think investors are cheered by the reality that here we are, finally the fed's going to start cutting interest rates. if i were king for the day, i would have done it earlier. but september is going to be just fine. >> so let's back up for a second and talk about that core read we got this morning. there were some analysts saying 0.2 on thecore, that's not good

enough. and maybe that could be one reason to say are we so sure this rally is because of rate cuts that were basically fully priced in a couple of weeks ago? >> i think i saw bond yields decline, so i think that's the cleanest indication that investors are saying hey, like, that inflation number was good. we'll get inflation to a place where the fed can cut rates. so they should feel pretty good about it. 0.18 on the core, that's right down the strike zone. i would point out that harmonized consumer inflation, which excludes home ownership, which i think the fed should be doing when trying to engage inflation has been below 2% the fed's target for more than a year on a year over year basis. so in my view, we're there. they have achieved their objectives. >> steve, we're down about five basis points, everything from the two years to the 30s are

down four or five. >> yeah. it's unfortunate, i'm waiting for the curve to disinvert, but it hasn't happened here. to your question, kelly, i just want to ask the following, which is maybe the market should be higher. i mean, you have a lot going on in the economy with things like ai and technological improvement. you have a bunch of government investment going. maybe the unnatural state is a depressed market here, depressed by a fed that's too tight. i want to give you two points here that were not in the inflation number. first of all, salary income and wage data in the income report was up 0.3%, but inside of that, i looked at service sector wage growth, kelly. and it is back down on a year over year basis, if you call up those charts there that i brought along that it shows back ground to where it was before the pandemic. so we've made a lot of progress

on this service sector wage growth, and i think there's a nice piece out saying hey, inflation follows, income follows spending. so if that's the way we're going, we can project forward a better inflation number into the future. >> so i guess you say then, if someone says why was the market up 800? what about the strong gdp yesterday? this is part of burnstein's argument that maybe it's okay than the status quo. >> i'll take a very quick crack at that, i was discounting yesterday's strength. it was okay. it was pretty healthy, you had a decent part of the final sales number was pretty good. but remember, we've had this incredible volatility, kelly, in inventories ever since the end or even during and the end of the pandemic. that added almost a percentage

point to growth. so i'm going to discount that, and the way i look at it is the chart i showed yesterday. take the first half together, compare it to the last half of last year, and sequentially growth is slowing. so i think it remains healthy, but i do think growth is slowing, because you had a big inventory drawdown in the first. you had an addition in this quarter. so take some of that with a grain of salt, average them together and you get a slowing in growth. >> kelly, i want to weigh in on that. i think the point is that the economy's so-called potential growth is a lot higher than commonly thought. i mean, the -- if you look at year over year real gdp growth through the second quarter of the year, 3% growth, but over the past year, the unemployment rate has risen a half a percentage point. so that would suggest the economy's potential, you know, that growth is consistent with enough jobs is a lot higher. so 3% is --

>> how is that possible? how is it possible? let me back up, we had -- you know the demographic time bomb we're talking about. how is it possible that our potential growth rate is higher than 3% at this moment in u.s. history? >> right now, it's higher than 3%, because labor growth force is booming, because we have a lot of immigrants coming in taking jobs. so labor force growth isn't what it typically is, it's up the two percentage points. productivity growth, right now it probably is also close to 2%. so you do the math, we're well over 3%. again, that's consistent with the data, consistent with the rise in unemployment and the fact that we're getting a boat load of jobs every month. if you asked me two years ago if you're getting 200,000 jobs a month, what would be happening with unemployment, it would be going down, not up. >> but mark, mark, just to be

clear, just to be clear, mark, that higher potential growth, which i don't know, the fed or even the general economic community is ready to kalpoe ten shall growth permanently higher. but that's going to come down with a higher neutral rate. it would mean that the fed would need to stay -- when it gets done cutting, it would be at a higher level than before. >> it's the here and now. the economy is able to support a lot stronger growth because of the circumstances that we're in. and, yeah, maybe the neutral rate's higher, but it's not 5.5%. 5.5% things are starting to weaken. you can see it under the hood. and for what reason? we've achieved our goals here, full employment, 4.1% employment rate, check. inflation is low and stable, and i would say it's below target or close to target properly

measured. check. so why 5.5%? you know, the economy is probably going to be just fine. i'm not saying if they wait until september, that's a big deal. but with each passing month that they don't allow rates to normalize, the greater the odds that something will go wrong. by the way, once something goes wrong, it's too late. it's just too late. the thing will take on its own dynamic and it will be very difficult for the fed to get things back on the rails. so you want to go before you break something. >> well said. i almost want to bring richard burnstein back into this discussion, but let's talk housing for a second, which has been one puzzle piece here with the data showing more signs. i'll bring in diana olick. what is this important sector telling us about rates, you think? >> well, look, kelly, this woke we got reports on sales of both new and existing sales in june. both came in lower than expected despite increased supplies. so it begs the question, if

supply was holding buyers back, why aren't they flooding in now? the simple answer is mortgage rates. the 30-year fixed spent much of march below 7%, and it stayed above 7% through june until it dropped back below 7% at the start of july. now, existing home sales are counted by closing. so contracts signed in april and may. new home sales were counted as signed contracts. so you can see why existing homes pulled back, but with the builders buying down mortgage rates, you have to wonder why they didn't do better. part of it is prices. we did get an early look at prices yesterday in june, which usually take longer to calculate. take a look, nationally in february, home prices were gaining at just over 6% year over year. in may, the game slowed down to 4.7%, and the cooling continued into june with prices up 4.1%, marking the slowest rate of appreciation since august of

last year, but they're still up. so july still ranks in the top ten of least affordable months of housing in 38 years. sales may be slow because people think mortgage rates will come down in the next few months, and that prices could too. and i think they're probably thinking right, and that's why dr horton, and toll brothers today on interest rates coming down are hitting record highs, kelly. >> steven kim made a good point yesterday that buybacks are now a big part of the story for home builders. we shouldn't read too much into the broader landscape when we look at why those shares are rallying. >> i do think that they follow mortgage interest rates. the builders have a lot of supply. not only have they been concerned about that, and if you get back -- if you get into that 5% range, you'll see a flood of people come back into this market, which benefits the builders. they have great margins any way, but they have a lot of supply. i would also say that with prices, if you see this flood of

buyers come back in, it's going to put pressure back on prices again to go back higher. >> diana, thank you very much. quick final word from mark and steve. mark, how would you describe the housing market fitting into this macro picture? >> it's been surprisingly resilient, at least in terms of construction. you look at homes under construction, that is falling quickly, which is another weight on the economy. so housing has held up very well in terms of construction up to this point. but that's now starting to change. another reason for why the fed may and should begin to cut rates. >> steve? >> well, kelly, i just have been thinking we've had a housing shortage since the great financial crisis. by concern is that government regulation could be standing in the way of housing finance. and i don't know if elizabeth

warren would fall off he ever chair, but i would like to see dodd frank amended where banks took on mortgage risk, creating some arbitrage that would reduce the spread. i'm not sure we talked why mortgages are trading so richly relative to -- i'm sorry, so cheaply relative to the ten-year. but it strikes me maybe there's not enough competition. maybe we overregulated the mortgage sector to the point we had more risk and competition in that market. >> kelly, there's a lot to unpack there, but ask me to come back and debate that one. >> you want to be on with warren? >> am i wrong about that, mark? >> steve is wrong, steve is wrong. that's not the issue. but a lot to talk about there. >> what do you mean that's not the issue. people tell me all the time it's because of the mortgage rates. >> the facts are correct. the reason why spreads are so so

high is the -- it goes back to the fed. it goes to the inverted yield curve and the vol temperature in the bond market. >> i have heard that, too. >> it's not regulation. >> i agree with that. but the banks can't hold the mortgages, mark. that's the problem. >> but they don't need to. they sell to fannie mae and freddie mac and fha. so that's not where the problem is. that's not why the spread is so wide. >> if investors aren't -- >> they're worried about getting prepaid out. that's what they're worried about. >> very fruitful for followups. i feel like a true part of the discussion. >> my strategy is anything steve says, i'm going to take the other side of it. >> i think you agree, kind of. >> we do. i'm just teasing. meanwhile, china weakness has been one of the big themes this earning season. weighing on everything from casinos to consumer staples to

airlines, the luxury retailers are just the latest under pressure. lvmh posting a 14% drop in asia last quarter. does that weakness offer a buying opportunity? or should you go elsewhere? let's ask my next guest. first of all, are you surprised by what's been going out with these numbers out of china? do you think u.s. corporate should have -- should they been a little more ahead of the curve here? >> i'm not really surprised, because i haven't been a believer in the shifting of the chinese economy into a consumption led economy. what have the latest gdp numbers suggested? it's happened on the export side. so china is dumping manufacturing goods globally because of the excess capacity there, because of just the

inability to stimulate growth on the fiscal stid and the monetary side. >> people talk about this pervasive sense of almost doom amongst chinese consumers post pandemic. is there anything policy wise that would move the needle? when should i buy those chinese stocks on any kind of change that could come out of the ccp? >> i think it's going to be a function of where we are stock by stock on relative valuations and what's really been priced in. i think the stocks are pricing in the, so at some point there will be select opportunities. but it's important to keep in mind that earnings out of china, which is nominal earnings are linked back to nominal gdp. nominal gdp is struggling because of the deflation in china. so we really need to see that change. now, do i think that can really inflect and be a big -- and

cause a big rally in terms of the consumption spending? no, no. >> some of this spend is shifting to japan, that a lot of chinese and travelers globally are looking at that weak yen. is that spend just shifted into japan at all? is that part of the story? >> partly shifted, but i don't think -- the chinese consumer has been growing decently well. when does consumption pick up? when you have the multiprior impact from production, from manufacturing, from industrialization. that's when you get the second derivative for consumption. and china is languishing on a host of those reasons, even the export led manufacturing model is now not really the story. it's the excess capacity. so i think that's partly happening, but nothing that's really going to move the needle significantly. >> so when you look around the world, what are your favorite ideas right now?

maybe china is not the investment opportunity. what is? >> i start with the u.s. i like the equal weighted u.s. index more than the cap weighted index at this stage, because i think there is the mean reversion trade that will gain momentum. i like pockets of europe, especially the small cap space, because interest rates coming down would help these companies that have had floating rate debt. >> just like the russell 2,000. >> yes, and that will provide a nice kicker. and also european indexes has system of these global companies well representing. >> do you like your european small caps better than u.s. small caps? >> i do, i do prefer that. the domestic story in europe is going to inflect upwards while u.s. will slow down, europe will -- >> why do you think the u.s. is slowing down, because everyone is excited about the small caps now? >> from a relative stand point from the last couple of

quarters, u.s. growth is trending down versus europe. that could be inflecting up. so the differential that has favored the u.s. may start favoring ex u.s., which comes back to certain emerging opportunities. i know china is the 800 pound gorilla, but a lot of interesting stories, particularly india is one of our favorite markets. we've been overweight that market for a while, and we continue say thing year it will outperform the u.s. i think some of the reform stories in india, some of the consumption credit driven stories look very interesting at this stage of its economic and market cycle. >> people said i've got india in their portfolio. what might they not have yet beyond india. stay away from china, i have india, maybe they like mexico. is there another name?

>> i think pockets of southeast asia, like indonesia, pockets of eastern europe like poland. that's the on shoring story of western europe. pockets of latin america. i think mexico and brazil seem to be oversold due to some of the domestic reasons, and we're watching that space closely. so i think it's scattered opportunities across differing regions that can make a ice emerging market portfolio. >> as we watch the opening ceremony tonight, i'm going to be thinking about the inflection of u.s. versus european small caps. still to come, digital really moving lower, and shares are 11% off their highest level. after the break, we'll check in with andrew power. plus, vice president harris unveiling her official tiktok account as the 2024 race heats up. we'll say what younger voters are saying about her campaign and whether this will be enough

to get her into the oval office. "the exchange" is back after this. >> this is "the exchange" on cnbc. (aaron) i own a lot of businesses... so i wear a lot of hats. my restaurants, my tattoo shop... and i also have a non-profit. but no matter what business i'm in... my network and my tech need to keep up. thank you, verizon business. (kevin) now our businesses get fast and reliable internet from the same network that powers our phones. (woman) all with the security features we need. (aaron) because my businesses are my life. (kevin) man, the fish tacos are blowing up! (aaron) so whatever's next we're cooking with fire. let's make it happen! (vo) switch to the partner businesses rely on.

when we're young, we're told anything is possible... ...but only a few of us go out and prove it. witness the greatness of anna hall on a connection worthy of gold: xfinity mobile. only xfinity gives you the most powerful mobile wifi network, with speeds up to a gig in millions of locations. and right now, xfinity internet customers can buy one unlimited line

and get one free for a year. get the fastest connection to paris with xfinity. when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh welcome back to "the exchange." shares of the digital realty are down about 1% today on mixed results. core funds from operations beat

estimates but revenue came in shy for the second quarter. and why alphabet dragged down big tech more broadly, that massive spending on ai could give digital a long-term boost. joining us is andrew power, ceo of the company. >> thanks for having me. >> let's talk about strength and weakness, what is the evolving picture of demand as we know this is one of these kind of gold rush moments in the country. >> sure, so we're supporting 5,000 customers on six continents. with advent of ai, that incremental wave demand has come full circle, and our north america market has been our largest contributor. we're bringing on new capacity in northern virginia, dallas and other areas across the u.s. >> there was some question and

answer in dallas and questions about the revenue decline overall. what is that attributed to? >> so we had a -- on the heels of a record. our new signs are up double from last year at the same time. dallas led the way, which is the demand is broadening out from the traditional markets. the good news is northern virginia, which represents a quarter of our business and our largest market, we have large capacity blocks. that is the most precious market. so we got $3 billion in data center investments coming online. >> so we're just seeing lumpiness in the flow of business. is it seasonal? >> these are secular, long-term demand trends. the topic of northern virginia came up and said the quarter was robust even without northern virginia. but a quarter or two, it will be one of our top driving markets. >> a lot of this stuff about ai is hype, but a lot is real

dollars. but the size of nvidia's growth over the past couple of years is flooring. where do you think we are in terms of the amount of money being thrown at this and what the next 12 to 18 months might bring. >> we're in the physical manifestation of ai. we're converting that to long-term contracts with most established customers out there. we will focus where there's core demand from customers that are already doing cloud computing, digital transformation and want to grow with us. and it's happening at a time when supply is more constrained as it has been in 20 years. >> why is that? >> power generation, all these elements while this growth is happening at a rapid scale. >> i was just thinking about the past -- in terms of partnerships that big tech has had. you look at companies like ups and fedex. well, they were once a huge beneficiary of big tech until

big tech said no, we're just going to have our own fleet. would big tech -- amazon looks down the balance sheet and turns it into a profit center. is there some way that they can do that and disrupt your business and take these things in house? >> we're support 5g,000 customers, but the top customers are the household names of technology. they have abilities to operate their own data centers, and some do. but in these major metros where we have giga watt land banks of capacity, we are a value add and they call it a force multiplier for their growth. >> what would you say about the power market? i look at nat gas prices, they've been extremely helpful. others are so prioritizing renewable energy. so when you look to meet their demand, are you able to get that

at a decent price or not? >> so i think i shared that with you last time. the customers want more power as fast as possible and they want green, sustainable power. digital is leading the way, we're pushing more power to green, entering into long-term agreements for the creation of wind and solar farms. greening our grid, greening our power, and we're trying to do that at hyper scale growth for these customers. >> but they pay the bill for that. whatever it is they want, you can deliver it somehow and the cost is whatever the cost is. >> you got it. >> what has been the competitive difference working with your company versus other major competitors? >> 40, 50, 60 different locations around the world, one-stop shop in terms of what we deliver, delivering from small foot prints to the largest data centers. we've been doing this for 20 years. >> does it make a difference?

if my company is based in california, does my data center need to be as close as possible? it reminds me of the high-speed trains, how important is proximity for stuff like this? >> not to the extent of what you think about with high frequency trains. but we have robust demand, the data needs to be proximate to the gdp, the population bases, the consumers of the data, that interact with it. these are markets becoming more and more supply constrained. >> i could ask a million more questions. hope to have you back next quarter. thank you for your time. >> thank you. stocks are broadly bouncing back today, but not enough for the nasdaq to avoid its second straight down week since april. it's been a tough stretch for alphabet, having its third straight weekly drop since october. back after this.

(♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

♪ that colonoscopy for getting screened ♪ ♪ is why i'm delaying ♪ ♪ i heard i had a choice ♪ ♪ i know the name, that's what i'm saying ♪ -cologuard®? -cologuard. cologuard! -screen for colon cancer. -at home, like you want. -you the man! -actually, he's a box. cologuard is a one-of-a-kind way to screen for colon cancer that's effective and non-invasive. it's for people 45+ at average risk, not high risk. false positive and negative results may occur. ask your provider for cologuard. ♪ i did it my way ♪ welcome back to "the exchange." here is your cnbc news update. former president donald trump's ear injury was caused by a bullet and nothing else. according to representative ronny jackson in an update released earlier this afternoon

on x. jackson, who was trump's former white house doctor, dismissed fbi director christopher wray's suggestions that trump's injury could have been caused by shrapnel or broken glass. the wildfires in the western u.s. continue to rage and a rare fire tornado formed in the midst of the park fire in california. this is now the state's largest wildfire. it has tripled its size for the second straight day, and remains zero percent contained. meanwhile, new wildfires have spread across idaho, prompting multiple communities to evacuate. and spacex's falcon nine rocket is cleared to launch after failing last month. the failed july 11th flight did not impact public safety. on the webwebsite, spacex will launch satellites on saturday. back to you. >> i would like to hear and feel

a real rocket launch some day. coming up, markets rebounding from this week's selloff. we'll wrap up some of the biggest movers since monday and look at the names that are still trading at record highs. but first, kamala harris making her debut on tiktok in an effort to reach younger voters. we have new data to see whether that's enough to get her into the oval office that's next on "the exchange." ♪ ♪ this summer, there's no better time to experience the latest mercedes-benz has to offer. make your dreams come true. but the choice won't be easy with exceptional offers on the e-class sedan, c-class sedan, cle cabriolet and cle coupe. hurry, these dream offers won't last forever. come in now through september 3rd. 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

welcome back to "the exchange." it's been less than a week since joe biden dropped out of the race and kamala harris became the de facto democratic nominee. and it's putting a demographic that was instrumental in 2020 back in the spotlight, gen-z. my next two guests have unique insight into what motivates them. joining me now are my two guests. great to have you both here. cyrus, what do we know so far about the data? >> yeah. look, i hate standing corrected, one of my least favorite things to do. normally when we see politics twitter popping off about something, it ends up being

nothing. beltway nerds getting jazzed up about nothing the rest of the country cares nothing about. when i saw the op-ed pages in twitter about kamala harris locking down the youth vote because of the coconut videos, i was like, okay. but when we got into the field, we polled 804 young people across the united states. i stood corrected. the early data suggests that kamala harris could turn in a near obama-level youth vote performance. >> casey, i wonder about the sna na significance of that. there were some trend stories i saw about younger generations being slightly more conservative than expected, and maybe that was as trump was getting a bump after everything that happened the last couple of weeks. but we always assume, well, young voters are always more democratic, aren't they? so the embrace of kamala harris would seem to go with that.

what would be savvy on her part is if the campaign capitalizes on tiktok the way trump did on instagram in 2016. >> i heard her team was reaches out to people in the youth space hours after everything came out. she also very wisely launched me merch, young people love merch. but she joined twitter or tiktok yesterday. already nearly has 2 million followers in less than 18 hours. so she has both the kamala hq, but there's also kamala harris. so she has two accounts that are absolutely popping, and she gets it. i really think she gets it, but also i think she has people on her team that understand the charlie csx coconut culture. i feel optimistic about the youth getting out to vote this

year and i didn't a week ago. >> maybe the thing to say is that wow, young voters might be democratic, but it's more that it wasn't clear if that young voter was going to embrace biden. what can you tell us about that? >> yeah, absolutely. at the end of the day, it's really important how many young voters vote for democrats versus republicans, don't get me wrong, but at the end of the day it's a turnout contest. i think up tons of dems saw our poll and started doing a touchdown dance, but there's a wet blanket to throw on that. 2022, there was a lot of hype about there being a youth wave, or a youth quake that saved democrats from a red wave. got some stats to throw in here. in 2022 in the midterms, about 50% of america voted. 18 to 29-year-olds, that number was about 23%. that is an obscene number. so at the end of the day, we

have a choice to make when it comes to the youth vote. you either act like everything is fine and dandy and accept 23% participation or we can acknowledge that being a problem and figure out why that number is where it is and the type of blocking and tackling is necessary to get young americans to participate in this democracy. >> casey, one of the questions for candidates is how do they retain youth enthusiasm without kind of pushing it away? in other words, if you jump on a social media meme and people thought that was cute and relevant, but at some point if you're trying to hard, that becomes a turnoff. no one wants the candidate to pretend they're an 18-year-old either. >> 100%, and i think that cute you said is a really important thing. like, she needs to not lean too much into the silly bratness. no one wants their president to be silly. that's not an adjective that you want associated with the

president. i do think it's a fine line with engaging what's happening in youth culture and what's happening on social media and important to know that memes don't necessarily translate to people comes out to vote. so what we are seeing on social media is encouraging, but it's going to require a lot of work. the youth vote is not in the bag, in my opinion. >> and the youth vote is one that is so usually in the bag for democrats, at least lately. and if it's not, that becomes something for them to think about. thank you guys very much for joining us. coming up, 32 games, 19 days of competition. more than 10,000 athletes. we'll head live to paris where the opening ceremony is underway. but first, the dow is positive on the week now with the mega rally, while the s&p and nasdaq are on pace for back-to-back weekly losses. 'lwr iupexonthe exchange." they respond to emails with phone-calls... and they don't "circle back"

they're already there. they wear business sneakers and pad their keyboards with something that makes their clickety- clacking... clickety-clackier. but no one loves logistics as much as they do. you need tamra, izzy and emma. they need a retirement plan. work with principal so we can help you with a retirement and benefits plan that's right for your team. let our expertise round out yours.

welcome back to "the exchange." as friday shapes up for a strong market day, up more than 800 highs, 675 on the dow, enough to put us above 40,000. the s&p, 5456, the nasdaq up a percent, so gains aboard. for the week, the russell up 3% since monday. the s&p is down fractionally, the nasdaq still down 1.5%. let's zero in on the home builders. d.r. holton, lennar, pulte, watch this space. horton and others are talking more about cash and buybacks. bristol-myers surging 8%, raising its full-year guidance up 10%. the best day in 10 years.

coming up, let the games begin. >> when we come back, we're serving up the almost games of 2024 right here on cnbc live from paris. welcome to the now way to network... they switched to juniper's ai-native network. and now everyone's so productive, they're operating at a higher gear... that's the now way to network at work—with real ai—putting you in the fast lane. while i am a paid actor, and this is not a real company, there is no way to fake how upwork can help your business. upwork is half the cost of our old recruiter and they have top-tier talent and everything from pr to project management because this is how we work now.

dave's company just scored from the comcast businessent 5-year price lock guarantee. high five! high five! -i'm in 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. 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.

welcome back to "the exchange." the 33rd olympian has kicked off in paris with the opening ceremony under way right now. let's bring in andrew ross sorkin. i'm so happy to see you. we're not talking politics. there has been some drama in france by the way. i'm curious to hear more from you about the vibes over there, but thank you for joining us, and what an event. >> what an event it is. you just mentioned the opening ceremony is getting under way just behind us on the seine river, which is available to watch right now live on peacock, and this evening on nbc in primetime, but this city is abuzz as the olympics here getting under way, and one of the things that we did before all of this began was we sat down in a rare and exclusive interview with bernard arneaux,

one of the most luxurious people, conglomerates. one of the conversations that came up was a discussion around a conversation that he had with one of the other great entrepreneurs of our time, steve jobs. steve jobs before he decided to build apple stores, called none other than bernard arneaux. here's what happened. >> i remember when we discussed this. he was discussing of doing -- to start this. he asked me, what do you think? i told him, because we were competitors, if you want to do something like that, which i think may be successful, you should put the first store in the best location, and maybe i will give you some ideas where you can follow it up, and he was

quite interested. one of the first ones he did, i remember, was in tokyo, just in front of a shop, and he proved to be a fantastic success. >> that it did. of course, apple stores now all over the world, not competing with them, but in many ways, technology has become one of the new great retail items in the world with experiences and the like, but interestingly, they also got into a conversation almost fphilosophical, about th d distinctions between technology and luxury. here's what he to say about that. >> he was very smart, obviously, and very critical, but to me, you know, i like your products and you have an advantage on me. he said, what? which one? i don't know if my ipod will

still be successful in ten years, but what i know is it will be sold in a century. it's different. it's a longevity. it's a difference or so between some tech companies which i admire because i love tech, and what we do. our products are here, not for eternity, but for a very long time. >> kelly, bernard arnault, one of the most revered entrepreneurs in the world, and he built one of the biggest companies in the world, and he threw a gala last night with comcast, the parent company of this network, and everyone came to kiss his ring and to learn from him. it was fascinating to watch all

this happening as the olympics as we mentioned, getting under way. i should mention, it feels like it's starting to rain, guys. >> oh. >> hopefully it's not going to rain too much given that this is all happening on the river, but i know i'm looking forward to seeing lebron james and coco holding the flags for the u.s. this evening, and seeing everything really kick off tomorrow. >> you know, it's a feel-good moment, and brian roberts put out a note to the whole company and he said his dad used to talk wha about what we do. we bring joy and happiness. i don't want to ask you about the trade problems, or the seine or the water if it keeps raining. we'll soak it in and come together. >> it's going to be great. >> it's going to be. yeah. >> it's going to be great, and it really does transcend things in a very, very special way, and you covered the olympics over the years, i've now been to a bunch, and it's a privilege, and really one of the most special things in the world. it's one of the few things in the world i think actually brings people together, really brings people together as a whole community, especially in a fractured media world where

we're all on our phones and social media. >> uh-huh. >> this, i think, is still the collective thing. >> i could not agree more. >> you bet. >> unifier. >> unifier. we need a unifier. here it is. >> yeah. andrew, thank you so much for making the time. it's really good to see you this afternoon, andrew ross sorkin. if you miss the ceremony, you can catch the full replay and bonus content tonight at 7:30 p.m. on nbc or streaming on peacock, and mark your calendar for cnbc's annual game plan summit bringing together industry leaders and people from sports and entertainment worlds. scan that qr code or go to cnbcevents.com/gameplan. that's it for "the exchange." it went so fast i didn't even realize. "power lunch" is up after the break.

welcome to "power lunch" on this friday afternoon. alongside kelly evans, i'm dominic chu. first a selloff, and now a rally. despite today's gains, we have seen a few cracks forming in the consumer and the market overall. we'll discuss that next. and "deadpool & wolverine" hitting theaters and that theering some records, and we'll discuss what means for the media giants. and the dow rallying more than 600 points right now. a stark change from earlier this week. at one point, we were pushing that 800 p