higher. consider malik neighbors for your fantasy league. we could be the next odell beckham, don't sleep on him, please. >> a strong buy rating. liz? >> medical devices. health care can do well in this environment, but medical devices tend to do best in a falling dollar and falling yield. >> see you on "closing bell." "the exchange" is now. >> scott, thank you very much. josh, i agree on malik. welcome to "the exchange," everybody. i'm tyler mathisen in today for kelly evans. here is what is ahead. you have powell, check. nvidia, check. so what's the next big catalyst or concern for the markets? we'll take a look at what to look out for and where to look for opportunity from here. plus, our analyst called it. he double upgraded best buy from a sell to a buy right before its blockbuster report today. the stock is up 15% right now.

nice call. he's here with where else, in retail where he's seeing opportunity. and speaking of retail, this company is uniquely positioned to monitor consumer foot traffic, and they are seeing some interesting trends, and may help inform the macro and where to deploy your cash in the space. we have the name and the ceo exclusively here on "the exchange." let's begin with the macro, which is lending support to the market today. the economy growing at a bit faster pace than originally thought, with second quarter gdp revised higher to 3% because of stronger consumer spending. new applications for jobless benefits down to 231,000 last week, easing fears of a recession, as the fed gets ready, by all accounts, to cut interest rates. our next guest says there is one piece of data that is concerning. joining us now, the chief economist at ew parthenon and steve liesman is with us, as

well. greg, what is that number that has you on edge? >> i think the number that we have to focus on right now is the fact that income growth is slowing. whether you look at real disposable income growth, currently growing at a 1% pace relative to about 2.5% to 3% for consumer spending, or you look at gdi, gross domestic income that came out today with gdp, that was also on the weaker side at only 1.3% growth. that contrasts with the 3% advance of gdp. so we have to be a little careful about the underlying momentum in terms of income. it's actually underperforming relative to gdp growth, and this is a catalyst that may portend to slower growth in the second half of the year. >> greg, let me continue with the thought there. consumer growth -- excuse me, consumer spending growth in this revised gdp number was revised upward. but there are signs, are there not, that consumer spending may be softening just a bit, and

we're seeing that in some of the retail company numbers that are coming out. >> yeah. i think you're absolutely right. we're seeing some signs of a slowdown in consumer spending, but it's not a retrenchment, it's nothing to panic about. what we are seeing is a slower pace of growth in terms of consumer spending. the reason being is that when you look at the cost fatigue element, where elevated prices are weighing on consumer's ability to spend and a still elevated interest rate environment, the combination of these factors is weighing on a greater and greater trench of the population. it initially weighed more on lower income families. now it's weighing on medium to higher income families. and as these conditions remain in place, high costs and high interest rates will continue to erode purchasing power and lead to slower consumer spending growth, especially in an environment where a labor market dynamic is softening. >> steve, react to what greg

just said, but let's also dive into that gdp revision, up to 3%. obviously, it's a backward looking number, but it certainly would be consistent with the idea that the fed may have pulled off that most difficult of monetary things, and that is a soft landing. >> yeah, it seems that way. i don't know that gregory would agree, but i think we do want some slowing here. we're at 3%, which is pretty strong for the consumer. actually, a business investment has been an unsung hero of the recent growth we have had. so you have fire on all cylinders here. i think the fed might welcome a little slowing here. this has been the problem with the soft landing all along, tyler. you see some slowing, and people start to panic, and i'm not saying greg is doing so, that hey, we're going into recession, when this slowing from that higher pace is exactly what we wanted all along. i would just add one thing, i

believe greg is 100% right that you may have a slowdown in consumer spending. but the consumer and corporate balance sheets are in pretty good shape. we have a rise in delinquencies, but nothing that is at recessionary levels. i guess on a nominal basis, not on the leverage side of the balance sheet, so i think there's going to be an adjustment downward, but i think it will be orderly. if the balance sheets are in good shape and employment remains high, you have a comedown from the high levels, but that's not necessarily worrisome. >> steve, the 3% number is a backward looking number to the second quarter. what is the outlook for the current quarter that we are in, and then as we round into the fourth quarter for economic growth i'm asking? >> boy, i have seen estimates all over the place in the current quarter, tyler.

from 1.5% up to 3%. i was just -- i got a little interrupted. i should have prepared. i'll look up the atlanta fed gdp, but i think it was close to 3% the last time i looked -- or sorry, 2%, and it is 2%, that's right, as of august 26th. look, that's trend growth, potential growth. all of this, i think, tyler, is separate from the notion of should the fed cut? the fed needs to cut because it's overly restrictive, re relative to a reasonable neutral rate. it doesn't mean the fed should be easy. and perhaps if it did 50 or 100 basis points, i believe the fed would still be restrictive. >> greg, i saw you nod thing with what steve just said, that they don't need to cut to stimulate the economy, the economy seems to be okay. i would like to get your opinion on where it's going to finish the year, but that it needs to cut to bring rates more into a

normalized position so that it is relatively non-restrictive. >> yeah. to go back to your earlier point about a soft landing, yes, if you look at the first half of the year, yes, we had a soft landing. we've had a soft landing for the past year, because disinflation forces were still very much in play. if you look at what the fed should be doing, they should be recalibrating monetary policies. we're not talking about going down to zero to stimulate the economy. one point that's interesting, if you look at the june projections from the fed, they were looking at the end of 2025 at a federal funds rate of 4.1% and inflation 2.1%. that means a real fund raids around 1.8%. that puts the fell feds fund rate at 2.9. the gap is 125 basis points. that's how much the fed could

ease monetary policy according to its own projections to neutralize the monetary policy. and this would be the right type of approach to essentially ensure that we maintain that soft landing and don't go overboard with an excessively rapid slowing in a tough labor market, which would weigh on the ability to spend. >> stay where you are. first, home sales in july came in a lot lower than expected, even with falling mortgage rates. so let's get to diana olick with the latest numbers. di? >> yeah, pending home sales dropped 5.5% in july month-to-month. the street was looking for flat. sales were 8.5% lower than july of last year. these pending numbers are based on signed contracts during the month. so the best indicator of how buyers are reacting to current interest rates. the average on the 30-year fixed dropped in july, falling below 7% for the first time since march and went to 6.7%, which

should have brought buyers in, but apparently didn't. the realtors chief economist blamed it on affordability challenges and some degree of wait and see related to the upcoming u.s. presidential election. likely the former and more wait and see on the interest rates, like rates going even lower. regionally, sales fell the most in the midwest which is where prices are lower. the south is where we see the new home construction, and the builders are taking advantage over the existing home market, because they can buy down mortgage rates. rates are still below 7%. they did move up slightly this morning after the jobless claims report to 6.41%, the lowest rate in well over a year. >> i mean, is it -- is it possible that one of the reasons pending home sales has slowed is there just aren't many homes in inventory to be bought? >> well, actually, inventory is rising, and it's significantly higher than it was a year ago.

but if you talk to real estate agents, they say it's not so much we're seeing so many more listings. we're seeing fewer now than we would normally this time of the year. it's just that homes are stale. so a lot of them are overpriced and people don't want to pay. >> that goes to the question of affordability, which you mentioned in your report. thank you very much, diana olick. back to steve and greg. your reactions here on housing. steve, why don't you take it away. >> so, i just thank every day we have diana olick to make sense of the housing market. it's been one of the most confounding parts of the economy for quite a while. you would expect at this point to have housing disinflation. it didn't really happen. prices, i suppose, are going to come down. there's a stickiness to prices, i think. when you look at it, and people don't want to acknowledge that their home prices have come

down, so it takes time to recognize that reality. you went into this hiking cycle with a huge deficit in housing around the country. builders are trying to respond. we'll see. i know that people think seven was bad and six is good. i think five might be the moment where you get a little bit more activity and get a true price in the housing market. housing is actually changing hands, and you get an actual better valuation on what's really going on. >> interesting. got to go all the way down to five. greg, let me let you button it off. after that revise to 3% in the gdp, what do you expect in terms of gdp growth for the remainder of the year and into '25? >> we're expecting moderate growth in the second half of this year. you'll see a pretty good print in terms of the july reading for consumer spending, which is likely to have grown 0.3% month over month. but in august and september, you're going to see some

tapering off of the momentum, especially on the services side of the economy. so weaker growth, gdp growth around 2% in the third quarter likely, below 1.5% in the fourth quarter. and then growth moderating to about 1.5% over the course of 2025. so moderation in the economy with disinflation continuing, and hopefully the confed contin. that could take the economy one way or the other. that's a big, open question right now. >> greg, thank you very much. steve liesman, thank you very much. we just got through a bloc without mentioning the word "nvidia." how about that? pretty good. we might not get through the next without mentioning it. tech may have taken the spotlight amid the rush to build out ai infrastructure, but the safety trade has quietly outperformed, and you can see that right here. spdr gold etf gld up 21% this

year to date, versus the spdr tech etf, xlk, which is up about 15%. how about that? here to make the case for both, i'm joined by mark smith from wells fargo, and john belton from growth equities. mark, you have been bullish on gld somebody >> why not? it's a safe haven. if you look at it over the last two years, there are a number of reasons to go into it. number one, geopolitical risks. we just saw yesterday a million barrel just got bombed in the red sea. that could be major issues for a number of different countries, and in fact, could cause further conflict in the middle east. so gld is a safe haven. number two, you have a presidential election. not one candidate is talking about our deficits. and that should be concerning for everyone. gld is another reason -- >> that's probably because both of their programs would raise the deficits. >> exactly.

gld makes sense, too. a lot of folks were going to bitcoin in the last two, three years. you're not seeing that as much right now. globally, you're seeing a huge demab demabnd for gold. >> another area you like is utilities. a real safety play. >> absolutely. listen, the elusive soft landing is yet to be seen. and so utilities -- >> you think it's not coming? >> we've seen it right now, but we just saw a huge jobs revision, one of the largest that i've seen in my career. all the numbers that i have seen when i thought rates wouldn't go anywhere, that was based upon the numbers. the numbers are wrong. so if you look at that, you have to say hey, listen, are we going to go ahead and continue this? are the numbers going to continue to get worse than they are? and so that could be a slowdown. maybe that soft landing we were predicting is wrong, because we were looking at numbers that

were incorrect. >> john, let's turn to tech. is everything okay in ai land? >> well, i mean, thanks for having me, tyler. i would start by say, sorry i have to rain on your parade and talk about something as boring as nvidia's earnings. i guess just to start there, because that is the topic dejour. i would say it was more of a boring earnings report for nvidia, if such a thing exists. i think we kind of like boring. i think boring is actually healthy for this stock and for the longer term for the ai space more broadly. but nvidia was kind of a boring standard beat in raise. i think there's still plenty to get excited about. they've had the discussion of broadening the product, still plenty of runway for i would say accelerated computing in ai as a subset of that to run. so, yeah, i think there still is -- >> you own it, would you buy

more of it? >> so nvidia is one of the top positions in each of our funds. we've owned it for many years. we're a long-term investors with nvidia. i think we have been buying it has worked well for us. it's not something we tend to trade very activity on earnings reports. last night's earnings is very validating. we're happy to hold it for the long-term. we think the outlook is, over time, pretty positive. >> okay, if that's sort of suspect number one, not suspect, but candidate number one in ai, to your view, what are number two, three, and four where i would want to put money in artificial intelligence right now? >> probably -- well, i would say nvidia is the top -- is each of the first five. after that, i think there's a lot of different ways to play it. utilities being one area that is

going to benefit from all the power demand. >> interesting point. >> so you have the cloud service providers who are nvidia's largest distributors. i think -- >> those being? >> microsoft, google and amazon. i think, you know, that's going to be the first place we see ai tangibly show up in financials. you have these big consumer internet companies, where meta and google are using ai, accelerated computing infrastructure to bolster their core businesses. so that's not directly a play on ai, but that's an example of a business where they're harness thing computing power and driving results in their core businesses. >> i will get your thoughts on ai, if i might. are the big guys going to win this and crush all the little guys? in other words, is it going to be a world -- is ai going to be a world dominated by some of the names that you just mentioned? >> this is yet to be seen, which is why we see what's going on in

nvidia today. the valuation of nvidia is astronomical, it's magnificent. but you just said it's boring this quarter, right? so boring and magnificent aren't really sin aynsynonyms. so i would say that it's yet to be seen, and the big companies are going to have to start using ai to justify to valuation that nvidia has right now. >> i'm trying to think of a sports player who is boringly magnificent. it's simply not lebron or pat mahomes. >> jimmy butler. >> maybe jimmy butler is boring, and maybe nvidia's report was the jimmy butler of reports. >> possibly. >> talk about that idea that utilities may benefit from the power demand, mark. >> absolutely. utilities, and i also think wells has a bullish rating on industrials and materials for

that same reason. i think it builds out across the country. utilities, again, i think will benefit tremendously because of ai and all the power demand. so regardless of what happens with ai and whether they go into the large cap s&p 500 names, you will still have a tremendous demand for industrials, materials, and energy. >> i asked this before, but you said nvidia is number one, two, three, four, and five in ai. does nvidia merely have a lead in this the category, does it have a mote, as well? >> i think it's got a really wide moat and a widening lead. the whole ecosystem that's built around these processors, the software -- >> that's the moat. >> just to answer your first question about who is going to benefit. if you listen to nvidia's earnings call last night, they're talking about customers in retail, transportation,

energy, financial services, health care. it's every sector, it's the whole economy. so ai is a technology that can benefit companies that use it smartly. and so nvidia is the infrastructure for that. >> it can help customer service, that will be a big thing for me. >> that seems like an early application of it. >> answer my question, be intelligent, be at least as intelligent as the person i get on the phone with. john, thank you very much. mark, great to see you again. all righty. coming up, dollar general plunging 30%. worst day on record after slashing its full-year outlook, blaming financially constrained customers. how about that? that is dragging down shares of dollar tree, as well. but it's a different story for best buy, up 15%, its best day in five years. i hope you're having your best day in five years. beating estimating, raising

profit guidance, double upgrading the stock from sell to buy ahead of the report. not mincing words at all there. going for it. we'll hear from him next. and another view of the health of the consumer from the ceo of the retail reit tanger, with shares hovering near a seven-year high there. "the exchange" is back after this. >> this is "the exchange" on cnbc.

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back in june, our next guest double upgraded best buy, raising his price target from 67 to $100 a share. he cited a post pandemic replacement cycle and a new ai gadgets as a catalyst for similar sales inflection. shares surging past $100 to $101.30, on their best day since 2020 following an earnings beat, attributed to tech replacement and ai products. but same-store sales still haven't turned positive. they've narrowed the negativity, but not in positive territory just yet. here to discuss the beat is our next guest. steven, you nailed best buy. congratulations on that. you saw it coming. it's a replacement cycle for what? is it laptops, is it appliances, all of the above, what?

>> thanks for having me on, tyler. i think it's laptops and tablets. we bought a lot of technology during the initial phase of the pandemic. you go back to that nesting period where we're all working from home. you're starting to see the consumer come back and you need to upgrade that equipment. on top of that, you are getting some newness from the manufacturers that's sprinkling into the assortment. that's still very small, that should scale as we move forward into the back half of the year and more meaningfully over the next couple of years. so it's a really attractive path here to come back and upgrade some of the electronics equipment they have. there are still areas you're challenged on the tv and appliance side. that hopefully gets better, but it seems like the stock has enough with computers and tab lets to see improvements. >> when you say we're seeing some newness in this refresh cycle, i assume you mean some of these tablets and laptops are equipped with ai features that

weren't in a prior generation of product. >> yeah. it's a great follow from your last segment, because you are seeing some ai newness rolling into best buy. the thing, is it's very small, it's a percentage of assortment. so it's going to grow over time. we should think about the consumer, you're probably seeing the early adopters purchasing an ai influenced pc. that will grow over time as some of the price points come down. you see more mass adoption. we're all eagerly awaiting the launch of whatapple has to say. the consumer has definitely been using that mobile phone for longer. that's been quite a theme. so best buy did talk about that on the call. that could be a nice catalyst for them as you think about the back half of the year. >> talk to us a little bit about that back half of the year and let's chew on the one thing that was maybe still a little bit -- you could quarrel with it, that is same-store sales. they were still negative but not as much as they had been. >> yeah, i mean, retail has been

a minefield this earnings season. you mentioned other stocks down a lot today. with best buy, what's unique is they're bucking the macro trend. you have some catalysts to see innovation, so they're really doing well in the landscape of a weakening consumer backdrop. so it's been encouraging. so yeah, comps aren't positive, but you have had two months in a row where comps have been flat, arguably comparisons get easier into the next couple of months and into the fourth quarter. so you have a catalyst path where comps could get back to positive. they're mindful of the uncertainty that comes with the election and that comes from a shortened holiday calendar. we have fewer days between thanksgiving and christmas, which has been talked about by a lot of retail. but i would say they feel like we're moving in the right direction. this year was a year of stabilization. next year is probably a year where you start to see the category return to growth. >> very interesting.

i'm looking at some of the numbers here on citi's credit card spending data, which is always interesting to jump into. and the total spending was down 4% versus the prior week, down 3.8%, excluding food. is that worrisome at all, or is it just noise? >> i mean, you know, the theme has been a weakening consumer landscape. we have seen that across a lot of retail this earnings season. we heard about it sequentially from the spring into the summer. so i think it's out there, right? as we go into the back half of the year, we still have the election distraction, what that does to the consumer spending on big ticket durable goods, but you have to pick your categories where you start to see growth. consumer electronics gives you that. we have been weak for almost 12 quarters, so you are starting to inflect the positive. we cover the home improvement

landscape. we're starting to see a pivot to growth as rates come down. so you have to pick your categories where that pivot to growth is starting to happen. >> steven, thank you for being with us. would you go and maybe see if you can assist that fine gentleman sitting behind you. he looks perplexed. he looks like a nice guy, working hard there. steven, we thank you. appreciate it. >> we'll get him in order. >> that's right. speaking of retail, check out what's going on in the background. it tells you things. check out affirm, surging 34% after posting better than expected results and strong guidance. shares having their best day in three years. their third best day on record as a company sets a goal of hitting gap profitability within one year from now. more of today's biggt veesmors after this. "the exchange" returns.

meet kandi technologies, where innovative, eco friendly design meets exceptional performance. our diverse portfolio includes utvs, go carts, golf carts and e-bikes. explore electric investment opportunities. kandi technologies. welcome back to "the exchange," everybody. the dow hitting new all-time highs. the so-called magnificent seven stocks broadly high we are the exception of nvidia. tesla, microsoft, apple, amazon, leading the way, up about 2%.

there you see them. look at that. nice gains there. apple up 2.5%. tesla 3%. airlines also seeing solid gains. united, jetblue, delta, american all higher by about 3%. elsewhere, bitcoin has crawled back above the $60,000 mark after falling below that level yesterday. the crypto is down 7% in august, worst month since april. and from crypto to meme stocks, gamestop is having its best day since april, unveiling a plan to convert locations into retro video game shops where they'll sell old consoles and hardware. now over to pippa stevens for a cnbc news update. the world health organization announcing there will be limited pauses in fighting in gaza to allow hundreds of thousands of children to receive polio vaccinations. the humanitarian pauses are in

coordination with israeli authorities, and will last three days in different areas in the palestinian territories, beginning this weekend. it comes after a baby contracted the region's first confirmed case in 25 years. a hong kong court convicted two former editors of the now shuttered pro-democracy news ou outlet. the trial against the former editor in chief and former acting editor in chief criticized the government during the 2019 pro democracy protests, is the first of its kind since the former british colony returned to china in 1997. star steph curry has agreed to a one-year extension deal for over $62 million. his agent says the extension will keep him under contract for the 2026-'27 season, which keeps him with the only franchise he's ever played for through his 18th season. no doubt a lot of happy warriors fans out there.

>> and boy, did he win the olympics for the usa. pippa, thank you very much. coming up, retail reit taker is up more than 600% from its all-time low in april of 2020. but could concerns in a slowdown in spending hit the company? we are back after this.

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welcome back to "the exchange." the consumer is still strong, but results from discretionary names across travel, retail, restaurants have shown some signs of slowing spending. and the reit tanger has a birds eye view across all three, with 3,000 plus stores across 40 shopping centers in the u.s. and canada. last quarter, net operating income jumped 8%. joining us now is tanger outlet ceo. steven, welcome. >> thanks for having me. >> you are doing well, i think probably in part because you fit in with the idea of a value oriented consumer. >> i think that's a big part of the story.

there's also just a lack of new retail that's coming onto the marketplace. and there's a high-end retailer demand right now. >> a few people a few years ago, a lot of people were saying stores were dead. nobody was going to go to stores because of health concerns, because of long linesshopping. but people like going to stores. >> i think covid completely changed the narrative. people are looking for more to do when they go to a shopping center than just shopping. they're looking for better food, looking for more experience, looking for other things to do. and so that's been a huge strategy for us is to take what was typical power shopping outlet centers and evolve them. >> so what's come in to affect that change? in other words, the tanger outlet that i go to in long island, i think mostly is a shopping destination. i don't think of it as an experience or eating destination.

who's come in as some may have gone out? >> riverhead is just one example of 40 centers we have across the country. we have shopping centers and other beach communities like myrtle beach and hilton head. first of all, the first dynamic is permanent population is moving that way. i think covid had more people working from home, so people moved out to the suburbs. and that suburban transformation to our geographies, has caused for our centers to be gathering places, not just on the weekend as outlet centers have been in the past, but during the week, as well. that's what's feeding the better food and beverage. what is food and beverage companies are coming in? is it a cava, a chili's? >> we've added cava, and we are working on them several others. shake shack has joined us. we have a couple of dallas barbecues. stores like that, that have sports bars, sit-down

restaurants, the beverage piece is really important, too. >> i would think after a long day of shopping you need a nice beverage. what are you seeing in terms of foot traffic as we head into the fall, a heavy shopping season? >> i think that the narrative of the consumer going to the value -- more value type product. i don't think -- our consumer isn't really shopping for low-end product, but the best possible deals on the brands that they love. they can get them in the outlets every day. so we have seen a bump in our traffic, particularly in august. a lot of it has to do with back-to-school shopping. back-to-school shopping starts very early and we're across the country. so you have some schools starting as early as the beginning of august, and now others are going back to school right now. so august has been a great month for us. >> i asked you in the break, where do retailers source their merchandise? if i go to a polo outlet or into

a shoe outlet, i don't know who. >> let's talk about nike. nike is a great example of a brand that only sells excessive inventory in their outlet stores, that's it. they're not manufacturing anything. >> it's a cheaper version. >> yeah, i think that every brand in outlet uses outlet for distribution in a completely different way. you've got brands like lululemon that only sells excess inventory, and nike only selling so customers going in, it's not fun to shop in a store when your run rungs are broken and they only have shies 2 and 15. so they're taking inventory of fabric that they're cutting up, using their best styles, putting them in a new fabrication and

putting them in the stores and they sell. what is is the likelihood of lower interest rates going to mean to you and your business? >> from a consumer perspective, it puts more money back into the hands of the consumer, which is always good for us in the shopping business. but we're a growth company. we've got a great balance sheet. so it gives us better access to capital. in the fourth quarter of last year, we bought two and built one new center. and we have our eye on a number of new acquisitions that we're hoping to share with you in the coming months and years. >> we hope you'll come back and do that. thank you. is it tanger outlets or tanger? >> we dropped outlets, just tanger. coming up, not just razor thin margins in the white house, congressional majorities also on a knife's edge in both houses. and one of former president trump's spending curves would

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welcome back to "the exchange." virginia, as the old slogan used to go, is for lovers, but also where thousands of government employees live and work. they're lovers too, by the way. but if president trump's biggest budget proposals comes to fruition, that government employee business could change, and so could the power dynamics on capitol hill. emily wilkins joins us from stafford, virginia with the story. >> reporter: hey, tyler. here in stafford, virginia, many of the cars you're seeing around me belong to federal employees who live here and take the bus and hour into d.c. but that could all change if trump gets elected and implements a plan that could cut

federal jobs and cost virginia about $28 billion per year. that's a big concern in this district, where a competitive congressional race is going to help determine which party controls the house. derrick anderson told us in a statement that he will oppose any legislation that would weaken national security, raise the cost of living, or hurt those jobs in this district regardless of where it comes from, even from his own party. so democrats and republicans, they spent about $8 million in ads here already and reserved another $2.5 million for the next few months. we might see that increase or decrease. but the democratic campaign has been knocking on doors and spoken to plenty of government employees and contractors who are worried about trump's plan and what it could mean for them. >> it would be devastating to this area. first of all, fundamentally unfair, but devastating to this area, because you're talking about thousands and thousands of

pretty well-paying jobs. >> reporter: trump's agenda 47 plan proposes firing rogue bureaucrats, something that hits close to home for him. he and his twin brother were fired from their government positions after he served as a witness in trump's impeachment trial. tileer? >> emily, do we know how many federal employees live in the seventh district of virginia? i assume it's a fair number, though it's fairly distant from d.c. >> reporter: so, it is fairly distant. and yet a lot of folks decide to come and live here in this area in virginia. you have about 60 -- a little less than 60,000 folks who are federal employees. that's more if you count the contractors, who for every one federal job, there's another 0.6 job created in the area. so a lot more than that, that would be impacted, if you see

these agencies moving out of the area. there would be huge cuts here and of course, questions about what is going to happen with the size of the government. a lot of concerns that you could see some down sizing and shrinkage, even for agencies that wind up staying in the area. >> all right. emily, thank you very much. appreciate your time today. coming up, first it was fir justice department, now it's a competitor, yelp filing an antitrust suit again google. antitrust suit again google. th a future where you grew a dream into a reality. it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai.

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call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. more legal drama for one of the biggest names in tech. yelp suing google for what it alleges is unfair practices. going the pushes their own ratings. the landmark antitrust ruling came in earlier this month. what is yelp alleging here? >> it's not alleges anything new. for many, many years, it said that google has an unfair advantage, 90% of the search marble, so they use that dominance to put their results first. let's say you go online looking

for a restaurant, you want to see the yelp review, but because google owns the whole engine, it shows the google landing page first. >> so i have to deep, deeper. >> even if you want yelp to begin with. >> it's steering me internally to google's own product. >> yelp has said for years that's unfair, using the dominance to change the results. what's different now is that there is a doj ruling in the doj's favor, you might remember it from a few weeks ago, the judge says google is a monopoly. we're going to file a lawsuit, against google, which basically could open up the door for these smaller tech companies, like epic, like some of the other, so think of the garden and other

tech firms say it's unfair. we know that google is always facing an avalanche of lawsuit. there's a second trial that will get underway in september. there's antitrust enforcement in europe. there's states looking at their own battles against google. what this is doing -- >> what would yelp and others like to see goo google do. if i turned into montclair, new jersey, and it takes me to google's landing page as opposed to yelp's landing page, and it does that with everybody. what would these other companies like a yelp, like anybody else, what would they like to see google do instead? >> they don't want to see google favor their own search results? >> so they randomize it?

>> oust give users more choice, where you want the search results to come from. it's a sort of level playing field, and they want the fay that the algorithm works be different. i mean, honestly, also, there's the other question of if this even matters versus going to a google search. so one of the complaints is when we -- clearly the point is yelp sees an opening with a ruling -- but if i use a chatgpt or somebody else, what's the favorite one? >> i like chatgpt. if i say the five best italian restaurants in whatever, aren't -- how are they going to choose which ones? >> they look at reddit, yelp,

google. i think that's one of the main question, thousand he monetize. google with the ad space at the top, is why google itself of is so profitable. that all needs to be figured out. google is testing that out now, so it could repeat itself. we could have this kind of system if we at move on to chat bots. >> nice to see you, dee. >> i'll see you tomorrow. >> i'm away, but you're doing "power lunch," so be sure to tune in tomorrow and watch dee on "power lunch." that's did it for "the exchange." "power lunch" is up next. i'll see you on the other side

of this quick break.

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♪ good afternoon, everybody. welcome to "power lunch." alongside contessa brewer, i'm t tyler mathisen. the dow hitting an all-time high today. s&p 500 and nasdaq with more work to do to set reports, but both up higher. >> and inindividual would shares slightly lower right now, down by about 3.85% after reporting

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