dan greenhouse, i hope you'll join me at 3:00 eastern time and farmer jim. >> that's one for me this week. >> truist financial. 11 times earnings. >> joey t.? >>xbi. >> biotech? >> good to be back with you guys. i'll see you at 3:00. "the exchange" is now. ♪ ♪ good to have you back, scott. hi, everybody and welcome to "the exchange." i'm kelly evans and here's what's ahead. more than 170 companies set to report earnings and we have a macro data including the jobs report on friday and there's the fed decision on interest rates and we'll get you set up for what could be a market-moving week and we'll check in with the new man in charge with the largest etf and mutual fund firm and the first on broadcast interview with what they're telling investors right now and we mentioned earnings, four of the mag 7 are on deck to report

this week. mama, apple is one of them and then this name, our trader says has similar fundamentals to apple and it's not a tech stock. he'll tell us the name and whether he's a buyer and that's what's ahead and dom chu has the numbers. >> we are seeing gains, specially in the s&p 500 and the nasdaq side of things and representing a little bit perhaps of the techtrade and the weight that we're seeing with the macro catalyst and the macro earnings coming up. the dow industrials, we'll call it flat. 40,583 is the last rate and it's down three whole points on the 40,500 basis and the s&p 500 is inching back toward the 4500 level and up 20 points and up one-third of 1% there and a half percent gain for the tech-heavy nasdaq composite and 17,457 is the last trade and up 100 points and one-half of 1%. a big stock to watch today is on the dow side of things and

that's mcdonald's, up 4.5% right now and it was up in the pre-market even though there was an earnings and revenue miss for the company and it also reported same-store sales growth company wide that was the first drop that we've seen since the first quarter of 2020, but there is some optimism that the company's management and they're focused more on extending the $5 menu side of things and looking at digital growth, delivery growth might be in the right direction so mcdonald's shares up 4.5% extending some of the gains and momentum that we've seen so far in the early session and then on the rate side of things, keep an eye on the drop that we're seeing in yields especially on the long end of things. it's 4.17% for the benchmark u.s. ten-year treasury yield and that's down roughly 0.02 to 0.03 of 1% and it's on the lower trading range going back to mid-march so as we talk about the fed meeting and the interest rates and the inflation dynamic and the growth dynamic going forward and the long end of the side of things and treasurys are

now bumping up on this level that we haven't really seen going all of the way back to march so keep an eye on that dynamic, kelly? >> that caught my attention, and we'll dive more into it, dom, thank. let's get to steve liesman with a look at this high-stakes fed meeting. did i see blinder calling for a cut this week? >> yeah, he did, but i don't think he's going to get it as much as i do like the former federal reserve vice chair alan winder and i don't think he's going to get it and this, kelly is the meeting before the meeting with the question being how much guidance does the fed chair powell provide for what would be rate decreases in september and perhaps beyond. mind you, the statement here and it's been safe for several months and the committee says it would not be appropriate to reduce the target range until inflation is moving sustainably towards 2%. >> it creates the opportunity for the fed to change this and indicate it's gaining greater confidence.

powell said in one of his testimonies that he has, and it would be hawkish, i think, if he left that phrasing alone. the markets going into this meeting and 100% with the cut price in september and a 68% of a second rate cut in november and the probability of a rate cut in december. an eight-basis point decline in the ten-year yield and we are down to 4.17 now. we think investors are looking to lock in higher long-term rates before the fed starts moving. powell and the fed, i would expect them to tread carefully here and not promising too much before they have to, and, head of a lot of data before september and this is a problem the fed has been making and they can be expected to keep going and that's how the market is priced. kelly, i just don't see a reason for the fed to surprise markets here with a rate cut it did not expect. surprises are a tool the fed has and uses them -- it doesn't use

them very often. >> agreed and as you and si know they've moved far away from anything like a surprise and when was the last time they surprised us with anything. it's been 15 years, maybe. that's a good question. i don't remember being surprised and there was one time when we got guidance in the week before the meeting where the story came out and we got a little bit more of guidance with what they were going to do, and i feel like that one from june peak cpi. that was, maybe, we heard three or four days in advance that they were going to go up and hike by that amount when they first started. >> i think that might be it and it wasn't at the meeting. they were always trying to make sure that we know -- that the markets know what's going to happen at the meeting. >> indeed. because we're in our business i would love a surprise and it

would be more fun to talk about, but my next guest might disagree and let's bring in two more voices in the markets and the cio and cnbc contributor and tom lee, fund scrap partner and head of research cnbc contributor. welcome to you both. i'm half joking, but they telegraph everything and the markets priced this stuff in well in advance. when you talk about the down sides to that, but that's the world we're living in. >> it's signaling as an institution they do, as well so powell is basically laying out the blueprint for the september cut which he'll do on wednesday and if i cut on wednesday even though i have every reason to and if the market doesn't expect it and i'm worried about something and we saw that with dudley this week. everyone said, what does dudley know? is there any way tom lee that dudley doesn't know something at

this point? i find that implausible. >> i don't think any fomc official or former fed knows anything the market doesn't and i think it's just their judgment about the state of the economy, and i think there is evidence that the economy's pretty soft, whether you're looking at housing sales and autos and durable goods and i kind of agree with steve and peter that a cut in this meeting would not be positive. >> peter, expand on that a little bit. >> think things are lining up for that cut in september. >> in september, but if i can argue if things have wound up for wednesday, but the fed likes to sort of game plan things out. they don't want to be caught stuck, having to slash rates and they don't want to have to be cut spiking rates which was their experience over the past four years.

they want to be in control of this conversation. in the back of powell's mind yes, i'm going to give you some rate cuts, but i'm not going to give you the amount you want because i'm still worried about inflation speaking about powell and my concern is that i lose control of this credibility that i worked so hard to get back, and we were talking on friday a little bit in the weeds about potential gdp was higher with mark zandi, but tom mentioned that he thinks things are slowing down. do you think things are slowing down and the areas that are softest are the areas post-pandemic and even mcdonald's, i cited this example and they have negative comps and it sounds like a disaster by the consumer and chipotle is up 7% and mcdonald's took the ten-pack meal to $19.19 and i don't think it's soft so much as it's resetting. >> i'm seeing a lot of softness and one thing between chipotle and mcdonald's, and i've seen surveys on this.

if i go to chipotle for $10 i get two meals. if i go to mcdonald's i'm getting one meal. there's a reason why chipotle is doing well. the consumer is approaching both restaurants with the same budget-seeking mentality. i'm seeing that across the board. the only thing that's strong for the economy is the higher income consumer, the baby boomer and government spending, and spending on ai and the capex associated with that. >> baby boomers and anything associated with the government and ai. >> i'm seeing weakness across the board elsewhere. >> steve, jump in here. >> well, i was just going to get back to what you were talking about and tom talked about this idea about the fed surprising and i just don't think there's a reason to surprise here in part because the committee -- i don't think powell has whole committee right lthere when it comes to

cutting rates and there are half that are ready to cut now, but not the full committee and one of the things you want to the do is powell will have it open, but i don't think you were saying that they were going to cut this week, and we talked a little bit about what you thought was going on with equities. a lot of people thought with the fed cut cutting and mr. lee, if you can bring this full circle for us. how much further should small caps rally, based on the fully priced cuts that we have and the fact that they're not going to cut in two days. >> i don't think the russell was rallying because they expect a fed cut and i think the russell 2000 is rallying because i think the cyclical side of the economy is going to get a lifeline if the fed is committed to cutting rates, once or twice or three times this year. the things like durables and housing and autos, they will inflect and that's why we're seeing strength in regional

banks and the cost to capital sectors like biotech, but to me the small techs have quite a lot of room to run because there's been breadth expansion and a lot of sectors are outperforming their large cap years and eight them have broken up to one-year highs on a relative basis and there's a huge expansion of breadth at a time when positioning is really light and you look at russell futures are still there. >> peter? >> i think there is some benefits that the russell is getting from the hopes of the fed cut. >> the russell hasn't made money in three years. i do think that there's some balance sheet hopes that a lot of these small companies have. if you're in commercial real estate you're praying for the rate cuts. >> are you hoping there is a cyclical lift to the economy with the help of lower borrowing

costs? do those go hand in hand? i'm not sure two or three cuts will move the needle on the economy. you can't rule out the possibility that long rates stay elevated or even stay up while the short rates actually go down. people just assume that the fed will cut and the ten-year yield goes down and that usually worked. >> wednesday, we saw the steepening and you were looking at the ten-year and that was the wrong area to look and it was all in the two-year and so, the fed cut's going to help me if i'm priced off the ten year if i'm borrowing? >> if you're buying a house? frank and i get into this discussion all of the time. do you want to quickly respond to that with a quick word on the -- >> no, go ahead, steve. it's fine. >> no, i was just going to say, peter's right on the cutting edge of what a big question is here. there's a lot of short-term uncertainty about when the fed cuts this year and how much it cuts, as i showeded in my report the market has three built in

and economists say more like two, but the more important question for all these valuations is how much the fed actually ends up cutting. the futures market has 150 basis points of cut built in through the end of next year. that might be a little bit aggressive as to how that is coming down and that is key to how the curve reinverts or remains inverted because what will happen is the two year would fall and does it pivot around the ten year or does it come down with the ten-year and it's a big question for businesses and borrowing and it's a big question for valuations and stocks. it's the most important one which is why you'd call it relief, that it was 4.17 to me. give us a word on the market. what do you think is going on? >> you know, i actually want to point something out and that's a misconception and russell

companies have negative earnings is almost solely due to the increase of number of biotech stocks in the index. >> the stat that i heard and i wonder if this is true that the russell 2000 earnings for 2023 and 2024 were literally the same as they were three years ago that the companies in the aggregate earned more. >> sure, but nobody buys stocks on 2024 earnings. if you look at 2025 earnings, russell earnings median is 700 basis points higher than the s&p. the median p-e is the russel 11 times. you're buying a much cheaper index, buying the russell 2000 with a lot more earnings growth, and i think a lot more operating leverage to if the cost of capital falls and liquidity improves or commercial real estate stabilizes, these are huge fundamental catalysts for small-cap stocks. so i think there are a lot of people that are too dismissive of thinking that they're just a trade here. >> peter, the most important

thing to clarify to these that think there are two $5 meals at chipotle. i know from bringing kids there that you can. i don't know if that's what you were talking about in terms of why that has more value than $10 at mcdonald's? >> i think that's why there was such a big deal about chipotle shrink regular the size, there is a very generous portion there that you can create. >> if you are my parents who can eat two meals out of one chipotle bowl. >> or if you're a value-conscious consumer that can have one side for lunch, one for dinner. >> gentlemen, thank you for your time, tom lee, peter buchmar, and we have news on apple, steve lie kovach has that. just minutes ago, apple released an early version for app developers.

this is goingto be our first try of apple's ai features, but likely not launching on day one with the first software and it's called ios 18. and that implies there will come another update after the september launch for everyone else. here's why this is important for the rollout, kelly because ai features are expected to drive iphone upgrades this cycle and it will take months for it all to happen. here's what's in and out in this first release. in, it lets you have more natural conversations and you can use natural language to search for your photos and also some writing tools and summaries of your notifications and text messages and the like. what's not coming until later and maybe not even until next year and that means generating images like we are used to with other ai products. the big siri update, the one that everyone's waiting for that lets you control apps and remembers personal details about you and the chatgpt integration

though apple has said it will be available by the end of this year and other things to keep in mind here, kelly. this is only launching in u.s. and in english at first. it is unclear when other countries and languages will get it, but even with this months' long rollout, many analysts believe it will drive upgrades for the e phone 16 cycle and you need the iphone 15 pro or better to use ai and this morning bank of america analysts say the upgrade cycle will remain strong for longer because of this measured ai, kelly. >> just to make sure i'm following, the chatgpt integration with siri will not be available this year? >> it will be available this year, but it will not be day one when the initial version launches, so we'll see this year and that's what apple and open ai have said. >> those that have an iphone 15 might still be able to do a software update and get the latest features.

>> i 15 pro, so the more expensive iphones and if you have anything less than that you'll need to upgrade your phone in order to try it. >> steve, thank you. steve kovach, apple reporting earnings this week. >> vanguard's ceo is the first outsider to leave the firm and he's starting by sitting down with our bob pis any aani, and speak about crypto. former president trump headlining the bit coin conference in nashville this weekend promising that if he returns to the white house the federal government would never sell off its bitcoin holdings and stopped short of a reserve and crypto is up 67 and we'll look at the execs backing trump and his running mate, senator vance who is headlining a fund-raising dinner in silicon valley tonight. "the exchange" is back. this is "the exchange" on cnbc.

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♪ our government has violated the cardinal rule that every bitcoiner knows by heart. never sell your bitcoin, right? if i am elected it will be the policy of my administration, united states of america, to keep 100% of all of the bitcoin the u.s. government currently

holds or acquires into the future. >> that was president trump over the weekend at the bitcoin 2024 conference stopping short of suggesting the establishment of a bitcoin strategic reserve. just saying the government should never sell the bitcoin holdings and j.d. vance is in the heart of silicon valley with what could be a lucrative fund raiser with the elites. for the latest on the tech execs pocketbooks for today's tech check. hi, kate. >> this j.d. vance fund raiser will be just a few miles away from here tonight and this is the epicenter of tech venture capital money which has traditionally flowed to left and this year there are high-profile donors opening their pocketbooks for the trump-vance ticket. for an invitation, he'll be hosted by cryptocurrency executive and mike belshi. one attendee has been a registered democrat for decades

and it's a result of the biden administration's crackdown and vance are now openly embracing the industry. the sec and gary gensler are the main complaints and then you have venture capital investors who are much more focused on the ftc and lena khan deal scrutiny is top of mind and vance is a familiar face here who was an investor for about five years and he worked for paypal founder before starting his own firm and he has ties to goldman sachs and elon musk that helped raise his profile rally and other wealthy donors. this is kamala harris' backyard and she was born here in the back area and former d.a. for san francisco and california attorney general. she's raised about $100 million thanks to wealthy tech donors from the other side of the paypal mafia names like reed hoffmann. >> there's been speculation whether trump would actually change vance to someone else to

his running mate. it's probably late in the game, but you never know. does that reduce the enthusiasm for the fund raiser tonight? >> not that we've heard. the enthusiasm is some former democrats, and i think there are some who have gone into this with undecided voters because of what happens at the federal agency level, they would likely vote for the trump ticket and they were focuseded on having friendly regulation and some of the agencies that they describe as more hostile and one open, kelly is carried interest and that's a huge issue for venture capital investors that hasn't necessarily been addressed and if someone said we'll not close the loophole and that would be a big deal that something folks are watching and haven't heard addressed from either side and has nine lives. it's been talked as people getting rid of it. >> itmight have 18 at this point and the number of times. >> it stuck around. >> thank you very much. we appreciate it. kate rooney out west. sticking with the crypto sector

the stock could soon be included in the s&p 500. my next guest remains skeptical. he has an underperform and has the laye latest target, he's frm mizuho. before diving into the names, was there disappointment that trump didn't come out with the bitcoin strategic reserve and what do you think is the more important thing that's happening here? it's completely mainstream if not becoming a lobby with which politicians are trying to create. that alone should put the coin base price target. at some point it seem like it's being fully integrated into the financial system. >> exactly. our view on coin base is still negative. it's hard to fit when bitcoin is going up, and although today it's going down despite the huffing and puffing and trump changing his mind and flip-flopping from thin air to

the best thing ever. i don't know where bitcoin goes, but what i know is that coin base is only 20, 20-something percent of revenue from coinbase comes from bitcoin. the rest of the stuff is not really, woing as well and eventually you'll have takeaways coming down. so if you really like bitcoin, you should bet on bitcoin not minus takeaways coming down. >> there was the successful launch of the etfs which have gathered a ton of assets. what does that tell you? it's actually going mainstream and i'm sort of the camp of the old trump or just in general. i like productive asset ands to me it's productive and i'm not a bitcoin strategist and there are a lot of people like it, and i think there's some fomo involved here, but either way, coinbase makes a lot less money on the etfs than they make on spot. they make a lot of money on spot

and they make a thin margin on etfs so if they get big they'll become dramatically high. >> a fair share of them have had their share of legal challenges, and i'm curious if there are big name platforms that could ever compete with coinbase and take that share away from institutional players and i think you'll get a lot more and i'll meet with a lot of institutional investors and one of the reasons it's done so well which is why if you're an institutional investor today you'll have to allow your client equity exposure and i give them a lot of credit for that and they're losing share to robinhood. we tracked it in the past and they're losing share in july and their percent of global volumes in their categories is actually down in july versus the last few months and i think eventually

you'll have another public crypto exchange and all of a sudden you have two choices or three choices or four choices. there's a lot of scarcity in bitcoin and we can debate that and no scarcity involving bitcoin. >> what are the investing implications if trump were another politician and were to step up and say bitcoin strategic reserve or even if they were to say swap out gary gensler. this one to you has investable implications? >> i actually think the trump thing actually hurts crypto and hurts bitcoin because now you're adding political risk to coinbase and do we take a 50% haircut to whatever the prices are today, i don't know, but i would rather have coin i base a bitcoin disassociated from the political debate. >> you see a lot of politics with oil and so on and so forth.

in fintech, we talked about f there is a ticking time bomb and buy now and pay later and that keeps not -- they're superior to credit cards and don't look there for the first crack of the consumer and where would you be looking in the coverage space and stully the opposite. no better time in investing in buy now, pay later than right now. where would you want to be when interest rates are coming down. the firm has proven to you that they're earning a lot of money and they can be profitable and imagine what would happen to a firm when interest rates come down and the cost of borrowing decline? they'll go to the moon. >> because of the way that they make money or because of the way consumers use the platform? >> because of the way that they make money. think about apple, the stock was down 20% on apple pay on buy now, pay later and apple is capitulating and they're giving

the volumes and that's $10 to $15 dollars per volume. >> why would they do that. >> they realize it's so much harder to underwrite properly and max out the firm they mastered underwriting and i think people didn't appreciate that, but now they do. >> even as people say in the first segment as people say gathering segment in the valley and even in that kind of climate you have no qualms, saying it's a great time to own that stock in the buy now and pay later space? >> yeah. because i think that people actually like borrowing on a short-term basis and borrowing as you go instead of carrying massive credit card debt and that's where a firm plays. >> still like sofi. >> we've done work that shows they can unleash 30% growth in personal loans if they want to the. if delinquencies come down and interest rates come down they're going to do it. >> it's fascinating.

i watched the delinquency data the knife edge and if this was a constructive view, we appreciate it. >> speaking of fintech, don't miss anthony noto tomorrow morning after releasing results and that's 9:30 eastern on "squawk on the street." we are drilling down on three names before the bell. the p & g. jetblue hasn't posted a positive year since the pandemic and 'll bring you the earnings and trade coming up on the earnings exchange. 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. i'm andrea, and this is why i switched to shopify. it gave

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(♪♪) 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 welcome back to "the exchange," everybody. i'm tyler mathisen with your cnbc news update. u.s. intelligence foreign actors are looking to influence november's election. they're adapting to the changes in the presidential race. intelligence agencies expect adversaries to refocus their influence operations on vice president harris and her outsourcing operations to marketing and communications firms in an attempt to influence

u.s. public opinion. the u.s. announced today a new $200 million security aid package for ukraine. the package includes munitions from mobile rocket launchers called himars as well as artillery rounds anti-tank weapons and other support. north korean officials are seeking medicines abroad to treat leader kim jong-un's obesity. he has obesity-related health problems among many other things. a south korea spy agency says the north korean leader has regained weight and seems to have obesity-related health issues such as diabetes and high blood pressure. kim who is 40 years old is rumored to be a heavy drinker and a smoker and he comes from a family with a history of health problems. kelly, back to you. >> i was just going to say, welcome back. >> thank you very much. good to be here. >> tyler mathisen. still ahead, a first on cnbc interview with vanguard's new ceo. he's the first chief executive who didn't work directly with

the tomorrow's founder the late, great jack vogel and instead he came from black rock. what does that signal about the firm's future? we'll ask him after e eathbrk. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo

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♪ ♪ welcome back to "the exchange." vanguard is one of the oldest and biggest investment firms in the world with more than $9 trillion in assets under management and it has a new man in charge, salim ramji. he took over from ceo tim buckley just a few weeks ago. he's the first ceo that didn't work directly with founder jack vogel and he's coming from the competition. for a first live first on cnbc interview he's with bob pisani. welcome to both of you, bob? >> good to see you. welcome, salim ramji. congratulations on the new job as ceo. i guess i'll follow up with kelly's question. it's rather startling that you were the guy, an outsider coming into vanguard from the first time and coming from black rock. why did you take the job and what are you trying to accomplish while you're here?

>> thank you for making the trek. i just moveded in last week into our new place and i've been here for a few weeks now and the thing that was always attractive to me about vanguard goes back to a big reader of all of vogel's books when they came out and admired a lot of what he wrote about and talked about in the founding of the firm and the growing of the firm and for me, it starts with the clarity and the consistency of purpose. i think what's been one of my great surprises since having started earlier this month is that as i get to meet more and more of our crew, the 20,000 people who work all across vanguard, that sense of purpose and that sense of mission is just as pfervent today as jack had founded the company. those are really special -- >> you want to continue jack's legacy? >> absolutely.

i want to continue the sense of mission because i think it's a special and important aspect of what the company was build on and what the company stands for. we're all about kind making money for our clients and not making money from our clients, and i think one of the great geniuses that vogel put into place is not just the myth, but a structure that continually reenforces that because our customers are our owners and there is no doubt as to who we work for. >> vanguard has $9 trillion of assets under management. the government is 6.5 trillion and you have $9 trillion. you are raking money into your exchange traded fund business and it's mostly passive, you have some active and it's mostly passive and we're getting a pushback from the active community and a lot of people are complaining there's too much money in passive and too much money being thrown into these passive funds and active management isn't working as well anymore. what do yoi tell these people?

is this sour grapes from active managers who are underperforming or do they have a point? >> well, some of these debates have been going on for a long time and as i read my vogel in the lead-up to coming here some of them were the same debates happening in the '80s and the '90s and the early 2000s. the thesis is not so much about active versus passive and it's the hypothesis, which if you can deliver to clients low-cost investment and maybe it's inactive, they can keep more of what they earn, and i think that was a pivot, i think, that vogel had made early in the -- in the early years of the company, but it really goes back to what's the cost of the investment service that you're getting? i think if the cost is low it gives an active manager a higher probability of outperforming, but it also ensures that across the total portfolio a client's

well served and that's why we've had active management for many, many decade asks we've had index management from many, many decades and all of them fit the bill of low cost and high quality. >> $9.5 trillion is unimaginably large. 5% or more of most companies in the s&p 500 and i understand it's a passive investment and some regulators have expressed concern. you recently warned investors that u.s. regulators might restrict the size of the stakes that you have. would this in any way, restrict vanguard's ability to grow. look, we're always working constructively with regulators and it's at the low of the possible cost. the number we keep in mind is we have 50 million clients and the average holding they have in the scheme of it is very big for them, but it's typically just under a couple hundred,000 and

our main focus is how do we continue the original mission to deliver low-cost investing for more and more people that are helping to save for retirement and helping to save for their financial security and be able to make sure we're working with participants and policymakers and the like to make sure that we're helping kind of those clients achieve when they want to achieve. >> i want to talk about other opportunities for vanguard. you have a firm that you are not going to be launching bitcoin etfs. >> yes. well, it's a -- >> why not into bitcoin anymore? >> i think it is very important, bob, for a company to have consistency between what it stands for and the products and services that we offer, and you know, as greg and i, our cio and president were talking, the -- the logic that he had around the total portfolio made total sense to me, and i think that if i go back to the original mission and purpose that also makes sense to

me, and so there are many companies that can offer many different choices and the like, but for us we want to make sure that anything we do, any investment product and any service we offer is entirely consistent about what we stand for. >> i want to ask you about intelligence, and i want to ask you about how it might be in the services business and there have been complaints waiting to get vanguard guard on the phone, what are you go to give to vanguard. beyond the theory of the sis case i have the pilots under way. we are applying it in practice. when i look at applications of what we do with digital onboarding a lot of what i've

seen in the client experience is due to applications of machine learning and applications of ai. i'm excited to work with our crew to learn about other applications this week and the week after to make sure that our client experience continues -- >> just on the services end, complaints of people not being with vanguard on the phone for a long time. is there a problem? will you improve more on that? >> first, i'm going to learn what we've been doing and how we've been changing and improving and listening very carefully to our clients. i spent a good part of last week sort of listening in together with the client service reps on the phone. i'm doing more of that this week and also in ways in which we are making investments in which to improve and enhance the client experience and it's very high on my list of priorities to figure out both, what we're doing and what we need to do to continue to get better. >> i just want to ask you one last question. companies are taking forever to

go public. so everyone is trying to get into the private equity business at this point. we get a lot of questions about this. does vanguard have any interest in this and will you expand on this? how will you do it? i just need a brief answer. >> we've done partnerships and it's an area that i'm looking closely at to see is there a client need and is there an area that we can offer distinctive value whether in partnership with others or in a total portfolio. >> salim ramji, thank you very much. a pleasure talking with you as always and congratulations on the new job. >> thank you. >> big job stepping into the shoes of vogel. we are live at headquarters. >> our congrats to salim ramji, as well in following in his foot steps and crypto which is the biggest question hanging over the firm right now. crowd strike on pace after the global outage continues.

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welcome back to "the exchange." you can see the dow and russell are lower today. the russell more significantly down 1.3%. tom lee reiterating her bullish thesis. the nasdaq is the strongest performer today as we head into earnings week. the s&p and nasdaq coming off back-to-back weekly losses, by the way, for the first time since april. coming up, three big names on deck to report including jetblue and may be trading at a discount relative to its airline peers. should you be a buyer into the print. we'll explore that next.

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cio. a busy week and people will overlook these names. start with procter & gamble on pace for their seventh straight positive month. jefferies warning consumer softening could hurt margins. would you be a buyer? >> i want to see the stock get weak. the best time to buy procter & gamble was 2018. it's up 18%. they have a high p/e. their p/e was the same as apple a few months ago but not going to grow at 4%. for a big wonderful company like procter & gamble buy them like a costco, a starbucks, buy when down. i hope there's a little bad news where you can get it cheap. i wouldn't sell it. again, it's priced for perfection and i don't see it. >> jetblue, talk about sharing in the airline weakness down 22%. barclays noting profitability issues haven't come to fruition, but leisure travel remains overexposed to weaker capacity

and fares. the stock down 4% today. under $6 a share. >> here's what i need to do. i need to see them lower their capacity, but here's the problem. they're not pivoting like southwest. let me tell you for what jetblue that means. they're the only direct flight between albuquerque and new york, don't have business class in the front. what they need is a lot of leisure travelers that want to fly in their mint offering and need to expand that. high margin. it's free money. they're not doing that. i would rather buy a delta. i don't want to buy delta. >> i think that's a great point about jetblue. maybe they're listening. pfizer coming off its six straight positive weeks. paxlovid, with watching for the oral glp-1 and flu combination vaccines. do you like pfizer here? >> you know, i like the idea of pfizer. what wall street is spinning this rsv vaccine thing 1.45% of

revenue. unless you think that's going to grow to 5, 10, 15%, this is it. slow grower. you buy for a big fat dividend. fy want a big slow growing fat dividend i'll just buy a value large cap etf. there's better things. i don't see glp-1 moving the needle on this company. >> ten seconds on the big tech earnings, i don't think we'll see you before that, are you exposed, trimming, what do you do? >> you know, we had a nice selloff. i think we saw the come down, the nasdaq going up, we see value in small cap coming down. i say you hold them. >> all right. >> don't fade the mag seven. >> chase it. lee, thanks very much. appreciate your time. always good to see you. portfolio wealth advisors. that's it for the "the exan."chge tyler is back getting ready for "power lunch." i will join him on the other side of this break. i understa. that's why at fisher investments we start by getting to know each other. so i can learn about your family, lifestyle, goals and needs, allowing us to tailor your portfolio.

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welcome, everybody, to "power lunch." alongside kelly e-vance i'm tyler massson. >> welcome back. >> didn't miss much. >> nothing went on. it's a busy week and going to continue. earnings from microsoft, apple and amazon. big fed meeting on wednesday. here to kick it off, managing director at dcla and cnbc contributor. well. >> thank you. >> before dive in, your state of play, dow down