2 had been in record territory. shooting for the record 11th close of the year. again getting a little bit of sigh of relief maybe as we enter into the afternoon trade. nvidia isn't all maybe that it is hoping for the rest of the market. talk a little bit about nvidia. it had been surging, after revenue more than tripled in the first quarter. gave a huge bullish sales forecast. it is still up 10% but again maybe it is no longer so nvidia goes the rest of the market, maybe more specific nvidia story today. brian: charles stock, jamie dimon comments are hitting markets hard here. jackie: interesting, i have a feeling that is where he will take us next. the dow is down 545. >> a lot to cover. i had so much fun on your show. talk to you real soon. don't forget the marble thing, brian. good afternoon, everyone, i'm charles payne. this is "making money." despite the red on the screen face it leave is in the air. but it is about to get too stifling? could investors actually have

their hearts broken? i will explain. also nvidia, you saw the earnings reports, absolutely fantastic. we have wall street cheering wall street, analysts and strategists you wonder how much they would cheer if a.i. took their job? you know what? tweet me at cvpayne, let me know if you would let a.i. take your money. new hard landing warnings from jpmorgan ceo jamie dimon. goldman salomon see as goose egg when it comes to rate cuts, none. tapped out consumer, i'm curious, what is the leest price you remember paying for a big mac? tweet me @cvpayne, it is all a memory for most people these days. all that and so much more on "making money." ♪. ♪ to be loved, to be loved, oh what a feeling to be loved ♪ charles: to be loved, folks.

i mean such a wonderful thing when love is in the air but when it comes to the stock market, you can be a couple problems. there are two that really stick out when the market is loved too much. a, there are limited number of buyers. if one is bought, everyone loves, what happens next? b, love is conditional, which means it must be reciprocated over and over again. retail investors, by the way, they're really starting to love this market a lot. remember how they got bearish about a month ago? bullishness exploded to 47%, well above the 37 1/2% historic average. so retail investors, they're feeling like hey, you got to love it, right? the higher it goes, the more you love it. but it is not just retail investors. take a look at this. you talk about wall street analysts and their love affair with large cap stocks? i mean these are the sell, hold and buy ratings. very few sells. here is the stock of the moment, stock of the year, decade, may be the stock of the century,

nvidia has no sell recommendations from wall street. wall street in love with these big large tech names. listen you have to love the numbers but we know numbers do change. here is another thing, at this stage of the game the notion well the market has been returning love. that means maybe it will continue to love us back. at least history backs that up, folks. another great piece from ryan detrick. at 100 days up more than 10%, what happens for the rest of the year? for the most part of arage we go up another 9%. so for the most part if we rocked and roll for 100 days, wow, that means we could rock and roll for the rest of the year. here's the thing to remember though, in real life, love can be blind although not always for the stock market, right? i will say there was a moment of sobriety yesterday. in all of the excitement waiting for those earnings from nvidia, the fomc minutes came in. they derailed the rally. all major intoday sighs closed lower. this morning preliminary pmi

reports. it sent bond yields higher and put the kibosh on the stock rally. we came out of the gate with gusto. all of sudden we hit a brick wall. all of sudden bond yields went up, 4.5, that es your number about on the 10-year yield. when we get above that, forget about it. nothing has had a greater influence on the stock market, not even nvidia as bond yields has. my next guest remains bullish for several reasons. i bring in ned davis research, their chief u.s. strategist ed clissold. ed, let's start with what you're calling a goldilocks environment, strong growth, low inflation, again one of your amazing charts. i love the charts you guys put out. i will say to me, there are more signs of slowing growth and high sticky inflation, particularly relative to the past 40 years. >> well, thanks, charles. yes, what this chart is showing is, we talk about things like gold goldilocks or stagflation.

we're going to quantify it. so you look at economic growth, is the economy growing faster than potential gdp which looks at productivity growth and labor force growth? you then you look at inflation is inflation above or below the five-year average. rather than guessing where we are we just use the numbers. right now we're in this goldilocks environment where the economy is growing faster than potential and inflation is lower than the five-year average. now the way we do things at ndr, we're they're until we're not. we're not trying to forecast whether it will change. we'll change when the data changes but i think you outlined risks very well, may be recession at the moment may not be a bigger risk. it would be more that inflation keeps tricking higher and then we have to deal with overheating economy or maybe slower growth and higher inflation. charles: ed, i've got the chart up here. the gold line here at the bottom, that is the real gdp you talked about, it is moving up to your point and we have got inflation which is moving down

to your point but we did get the last gdp report which was a big miss and i suspect the atlanta fed number will start to come down. we know the economic surprise indicator has gone off of a cliff. the notion of going where the puck is though, you don't use that at all? you just stick steadfast with the numbers, say, hey, the puck is moving in this direction. maybe we want to be there or prepared to be there? >> yeah. we do look at the puck going so we can be prepared but we'll wait for the data to tell us and you're right, like the retail sales data lately, the jobs report, you know suggests that the economy is slowing. so we need to be on the lookout for it. so that is what we're concerned about. charles: right. >> we look where we want our portfolios to go but we'll wait for data confirm. charles: we have your market outlook. we talked about earnings. you're pretty confident there. still in soft landing, rate cut position right there. and the excessive optimism, first quarter, that was shaken out with the april swoon.

you felt good about that. healthy technicals. of these four elements, is there one that may be a little bit, that you're starting to second-guess here a little bit? >> well, the recent rally has brought a loyal it about optimism back into the market. that's one thing we need to be on the lookout for. you talked about the american association of individual invery tore survey that can change day too day or week to week. if investors fall too in love with the market who is left to buy. we have to look out for that. charles: you still like growth, tech communication services and i think as they start to cut-rates folks should be looking at financials and utilities? >> yeah. that's more of a tactical call as, if the fed does cut-rates you know, steeper yield curve should help financials and utilities really underperformed so much and they have high dividend yields, lower interest rates should help utilities.

>> ed, still love your research. i think it is the best out there, at least in the top three. thanks for sharing it with us. >> thanks for having me. appreciate it. charles: my next guest recently stated the market is unissing on a soft landing island. sounds hike a cool place to be. the question is the market and investors about to be burned? i want to bring in john hancock chief investment strategist. i was preparing for this interview, seems like maybe you're worried about complacency with this rally? >> yeah, we are. sentiment is getting stretched as you point out, we're lucky in a way. we got basically the michael jordan of companies with nvidia, and maybe scottie pippen is microsoft but picture the bulls without the supporting cast? right now you're seeing earnings outside of the s&p 500 top companies are actually down year-over-year. so there is huge concentration in the earnings momentum and we

think it will be more challenging for companies because the high cost of capital, we're seeing decelerating economic growth as you've been talking about, economic surprise index coming down. so we're trying to find great income opportunities for investors so they can get paid to wait, hold on to high quality stocks as earnings get more challenging from here. >> i want to get to that in a moment. i have up smci all world stock market. of course this talks about the port poll average weight and total return. of course nvidia, michael jordan at the top of the list, scottie pippen right behind. here is what is interesting, if you look at total return, 1.75, that's more than the next three. so nvidia has critted more to this market than microsoft, amazon, meta combined. it has worked so far. so if you got an index, even just one name powering it, do people stick with that or do they say you know what? maybe the smart move to get out

before nvidia starts to hit some bumps in the road? >> yeah it is starting to get expensive here. you're going to be having challenges replicating how awesome this is in terms of results. it is almost reaching a three trillion market cap, you try to put that in perspective it is really hard to do on a global basis. so we look at high quality stocks. we're looking at that as our primary implementation on equity market. index wise, we would be careful with the s&p 500. we would increase quality. we like mid-cap industrials. we think the midwest is frankly booming here. it is a lot cheaper. if we get a rotation that's what we like but a day like today the u.s. market doing not as well. earnings are the best, u.s. economies are the best in the world. that's why we're sticking in the u.s. charles: i'm with you a thousand percent. i do want to ask about the move in commodities particularly copper. energy was the place to be. in fact, folks remember how energy exploded in the month of

march and this is energy versus the market, overall market, it significantly outperformed the market. it has come down. energy is in freefall. commodities are getting a little bit wobbly here. i'm wondering what it means about the state of the economy, the global economy and the domestic economy? >> energy has been a great hedge for portfolios. it is really something that will zig when the rest of the market zags. when you talk about the complacency in the market, that has been an unwind of energy because there is lack of geopolitical risk priced in. we think this is relatively cheap opportunity. dividends are great. the u.s. isn't what it is without the energy independence we have. that is filtering into the midwest manufacturing boom that's happening across the country. so we actually look at these markets as in terms of energy as great dividend-payers, great cash flow, that is a place looking pretty cheap after all this love for tech. charles: yeah. you know, sometimes too much love can be a tough thing. matt, i'm sure you know all

about that we'll talk real soon, my friend. appreciate you. great work. >> thanks, charles. charles: so many would think that hitting and all-time high would be good but really the natural instinct among investors and people are, well things cat get any better. blake millard has been really frustrated with this. he will show you exactly why new highs beget new highs. he will explain. he is next. ♪. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there.

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charles: so there's an old saying on wall street that new highs beget new highs and by the way new lows beget new lows. with that in mind my next guest is somewhat perplexed the amount of fear this rally has triggered among investors. i want to bring in some box financial partners director of investment vp blake millard. we have over the years all-time highs in any particular year. one thing we do notice they happen in bunches. >> yes. charles: they kind of happen, they're kind of bunched up. we went, we had the big rally and then we went with one new

high and then last year, it was the last year or year before, no highs, right? >> last year. >> so, they do come in waves and now, at just 24 new highs people are panicking? for the year? >> for a lot of conversations we have investors are really nervous about all-time highs and what i would say is, you know, last week we saw dow at 40,000 for the first time. we see u.s. averages, international averages all at all-time highs. this is while the average investor at home has been hearing about, there is recession that will be hitting, leading economic indicators that are negative. charles: right. >> these are scary headlines. a lot of investors have been sitting on the sidelines or at worst selling equities. if you loan me a second, really important point, jpmorgan just put out some great data that would show what the forward returns are on the s&p 500 when they are trading at all-time highs. looking at the past 50 years, what has the s&p done?

12 months later higher 73% of the time. median average gain 12%. charles: if you chase more highs you would make more money than selling. people remember this though, this giant gulf, when the bubble popped. >> yes. charles: there was a many, many years with zero all-time highs, many, many years with zero all-time highs. >> they do come in bunches. charles: what do you tell them about this particularly when the market seems to go up quickly? >> sure it's important to keep in mind the fundamental backdrop that we're in. i would point to either strength in the labor market or earnings that are really going to push this market higher to come. charles: right. >> one thing we know is, we've just gotten through the majority of earnings season and the, the beat rate was coming in at 81%. that's much higher than the 10-year average. that is in the low '70s. we know earnings are growing 6% which is the lower than the long-term rate of about 9% but we do see that estimates are going up.

we're looking for 10% this year, 14% next year and, wall street has a funny little habit of reducing expectations. what we're seeing for the upcoming quarter, for the first time in nearly three years, wall street is actually raising the bar again. charles: right. >> again improved backdrop, the fed is not -- this labor market that won't quit. charles: the ironic thing, the labor market has been strong but it has been trending this way and you expect this to start. they were if you look at the composition of these jobs, mostly government, a lot of leisure, that esal those are the lowest paying sectors. what do you say to folks the earnings game for instance, all these companies beat. i was in a stock that beat the street, the stock went down 10%. yesterday, yesterday, i had williams sonoma. we sat down to take profits. you know how lucky we were? it closed down 30 or 40 points from where it opened. if the earnings are so great and they beat why are these stocks

getting hammered? >> this year has been unusual, the beasts are not rewarded and misses are getting hammered so you're absolutely speaking to that. what i would say, when earnings are geeing which they are now -- charles: that is the key. >> that is very much the fundamental key. we just came out with a earnings recession with earnings expected rise even from here we know looking over the long period of history stock prices generally trend alongside earnings. if earnings are starting to tick higher i would expect the market to follow. charles: the bottom line earnings growth is the mother's milk of higher stocks. >> absolutely. charles: we got to go. is there any particular area you're more attracted to right now than others? >> we love financials, we love industrials and we love crypto. charles: my man. thank you very much. >> thanks. charles: despite hopes that the banking crisis was a nothing burger believe it or not there were 22 banks that had major runs against them. we were in a lot of trouble. the question is are we still? no one better than lyn alden to break down the state, the real

stay right now of the banking sector next. ♪. another destination wedding?? why can't they use my backyard!! with empower, we get all of our financial questions answered. so we don't have to worry. empower. what's next.

charles: so remember that banking crisis that turned out to be a nothing burger? a couple of big banks they did go under but for the most part it was a stroll in the park. turns out maybe we were whistling past the graveyard, folks. wait until you hear details from lydia hu. >> reporter: really alarming report right now. we're finding out 22 banks in

march last year alone experienced a run. so the situation could have been much more tragic. we have a new report out from the new york federal reserve. they are highlighting 22 banks that suffered a run. they're saying that this run was driven by large institutional depositors. remember we were so worried about mom-and-pop taking their money out of the banks? turns out we should have been talking about the large depositors. the bank that survived b doing so by borrowing new funds. look at the next chart, they're tracing the situation of the balance sheets, back in december of 2022 just before this crisis and the banks that experienced the runs had characteristics we're finding made them more vulnerable. you see high loan to asset ratio, higher than the banks that did not experience runs. we're also seeing commercial real estate loan to total loan also higher, pretty significantly, 44% compared to 19%. most of them publicly-traded and also concentrated in california and new york. so we understand that the fed created the bank term funding

program. it is an emergency program making funding available to banks when they need it. back in march it stood at $167 billion. still, at $109 billion. so that's a lot of money that's sable. and we see that money is available as the fed is pushing hard now for all banks to be prepared to borrow from the discount window but many are reluctant to participate in this because they worry about sending a signal of weakness. you can see we have roughly 9500 banks and credit unions but only about half of them are even registered to participate. so you have to ask, how vulnerable is our banking system even at this very moment? well let's consider what jpmorgan ceo jamie dimon said, just overnight while he is in china. he is saying a hard landing cannot be ruled out for the united states and that stagflation would be the worst outcomb. also, charles, i got to let you know about what goldman's david solomon said, he said zero rate cuts for this year he is now noting the average american

still really feeling the sting of persistent inflation. charles, send it back to you. jackie: charles: wow it is eye-opening. thank you so much, lydia. my next guest is making huge waves educating the masses what money really is and where money is really going. joining me lyn alden investment strategy founder lyn alden. i have to be honest. i thought it was all contained. you had the unique situations. i didn't know there were 22 runs on banks. i'm curious what the health of the banking sector might be at this very moment? >> it is improving now compared to where it was a year ago but it is certainly not out of the woods yet. basically when ever interest rates are raised by this much this quickly, especially from such a low base, that is at risk of breaking things. i think the bigger picture is less about probability of bank runs in intermediate future. it is really about the fed's overall ability to fight inflation. ever since we saw some of these banking issues, a year ago, the

fed has kind of waivered on their inflation fighting mandate as previously discussed, more liquidity in the form of loans and various facilities was put into the system, even as they were trying to fight inflation. we've also seen a slowdown in the number of rate increases and the unwillingness to raise rates even though we still have above-target inflation. this is because in large part i would argue that policy make remembers very careful to do something that either disrupts the sovereign bond market or disrupts the banking system in an acute way. charles: so that point there is quantitative tightening, even there they have altered that somewhat. so a lot of folks are saying maybe with respect to fed policy, whether it has been restrictive enough, how could it ever be restrictive when the fact of the matter is the liquidity never really went away? >> yeah, pretty much, during 2022 we saw falling liquidity which is disinflationary, but ever since 2023 we've been in

more sideways liquidity situation. the new york fed's already projecting in some of their reports by next year, 2025, they're likely to go back to balance sheet increases. so i think it is somewhat probable that some of these loan facilities will only be wound down once the fed is back to gradual balance sheet increases. you have side ways to higher liquidity situation, even though they're ostensibly trying to fight inflation. if you have a lower debt, more stable banking system, less debt and deficits on the public level it would be easier for the fed to do whatever it takes to fight inflation but because they have these other constraints, it kind of handcuffs them to a certain extent in terms of the tools they can deploy and speed and magnitude when trying to fight inflation. so you risk getting stuck in kind of a, what jamie dimon referred to as a stagflationary potential. charles: i want to ask you about two things. i remember back in early 2009 the market felt like it was in

permanent freefall, perpetual freefall, in march we mitt a bottom. a lot of people didn't get in the market. the over all theme on wall street the next shoe to drop would be commercial real estate. we've been hearing that more recently as well. how big of a threat is that not just to the banking sector but to the overall economy? >> so the broader economy i would say moderate, say a trillion or two trillion losses in commercial real estate that sounds very big, compared to for example, there is two trillion dollars in annual fiscal deficits for example. there is well over 10,040,000,000,000,000 estimated u.s. household wealth, for example. and so those are, i would describe those more local issues. charles: okay. >> to the banking system, to the commercial real estate developers themselves. charles: i have 30 seconds, the main newsletter, titled the bond market is the dumb money now. what does that mean? >> so basically the larger than

a sovereign bond market gets relative to the size of the economy, the more it is likely to be a managed market. so there are central bank buyers. there is treasury actions. the point there is the bond market is less informative on the state of the economy or forward inflation than it used to be in the golden era of the bond market back in the 80s and the '90s. charles: lynn great stuff, always appreciate it. >> thank you. charles: my next guest continues to believe the data will support rate cuts light they are year. that should put a cap on bond yields and support the credit carry trade. jpmorgan fixed income manager, kelsey berro. that was a fascinating statement by lyn alden, the bond market is getting so large, more of a managed market. doesn't have the predictive powers it maybe once had or even the proxy for things that it used to be? >> well i understand the sentiment but i do think that the u.s. treasury market is

still the most liquid and most efficient market when it comes to pricing in new information, whether it be good news or bad news, you see it priced very efficiently in the market. charles: it is still the canary in the coal mine? >> would i say so, yeah. charles: and on the retail aspect of it, we have seen of course because of the yield more american retail buyers but also overseas where governments may be sellers and not buyers we've seen overseas citizens also buy a lot of our treasurys right? >> that is true. there is a lot of interest around the world for debt in the u.s., both treasurys as well as credit. and that's something that we're actually really leaning into is not only, you know, building a diversified portfolio but also making sure that we're getting the yield pickup from credit. we do think corporate fundamentals are still pretty good. now the thing that makes people nervous in the high yield market is something called the maturity wall. charles: right. >> which is essentially how much debt is coming due in a very

short term for these companies and can they refinance that, can they roll that over. what we've seen in the last few years is that companies have done a really good job paying down that debt and pushing it off into the future -- that maturity wall is lower. >> that is at much lower yields, right? you have to borrow significantly higher now than a couple years ago? >> that is the thing they have locked in those lower yields similar to what a person does when they lock in low 30-year mortgage rate and for those who are already in a home before the fed started raising rates, you're not really feeling the same impact that somebody who is looking to buy a home is feeling. charles: another reason folks are arguing, maybe the fed's old school, you know, rate hiking thing hasn't worked, to script because things have changed. i won't say you're sanguine but you're still pretty confident about these rate cuts and inflation i guess. this last cpi report, this supercore actually went higher. do you worry at all about where

inflation is, maybe, new normal so to speak and not going down enough for the fed to cut but maybe, maybe main street and wall street just saying okay, we're accustomed to it but not necessarily bringing in rate cuts? >> inflation is absolutely the biggest risk for this market. if it comes down faster, i actually think that would be a surprise because everyone is talking about it being sticky, but also if it reaccelerates that would be a surprise. now we digged into the inflation numbers. we look at it, we slice it every which way. charles: take it apart. >> right. if you look at it it is becoming increasingly concentrated in just two categories. right, so core cpi 3.6% year-over-year. 330 basis points of that is coming from just two categories, rents, shelter, auto insurance. charles: right. >> which is why the supercore going up. the whole rest of the basket is only contributing 30 basis points. it actually becoming a very

concentrated story. when you look outside of those two sectors, shelter and auto insurance which are real for the consumer, but it is only part of the story, actually things are generally back to normal in our view relative pre-covid. charles: you said it was coming from two places, i thought you meant my wallet and my bank account. i have got 30 seconds to go, talk about hard landings and stagflation, it doesn't go away. jay powell played it off. he doesn't see the staggered inflation. housing data, demand is down, prices keep going up. that is sort of a subcomment. is it still, should we just completely dismiss it out of hand, that stagflation may be among us or right on the horizon? >> what which recently experienced so far is not describe as stagflation. inflation is coming down. it peaked seven or 8% in the summer of 2022 and it has been coming down. charles: it has been sort of sideways. >> more recently. but it is not nearly the levels we were at historically would

call it stagflation. charles: right. >> call it unenemployment. stagflation is high inflation and high unemployment. i understand where everyone is coming from here. i think the biggest risk that we're looking at right now, is the stress in the low income consumer. and if that is going to start to trickle into the broader aggregate data. charles: right. >> right now 50% of spending is done by the top 30% of earners. charles: right. >> two things can be true, the low income cohorts can be struggling and overall consumption can still be doing good. charles: right. >> but can that last forever? i think that is the biggest risk we're talking about what shifts us from a soft landing to a hard landing. >> it would be beautiful to see the low income catch up with everyone else. i don't know what mechanisms are in place for that to happen, we're out of time. you are fantastic. appreciate you coming on the show, kelsey. thanks a lot. >> thanks. charles: another issue, nat gas, have you seen the price of

lately? aye yi yi. maybe that is another issue when it comes to inflation. whether the fed counts on it or not it will have impact. erin gibbs will drill down what it means for you but also maybe you make a little money on it? everybody wants super straight, super white teeth. they want that hollywood white smile. new sensodyne clinical white provides 2 shades whiter teeth and 24/7 sensitivity protection. i think it's a great product. it's going to help a lot of patients. ♪(voya)♪ there are some things that work better together. like your workplace benefits and retirement savings. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices voya, well planned, well invested, well protected. after last month's massive solar flare added a 25th hour to the day,

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♪. charles: all right, so my next guest says before you get comfortable with the notion of inflation kind of drifting down, take a gander at the spike in natural gas. this is the chart here and, obviously it has been up big time. i want to bring in main street asset management chief investment officer erin gibbs. first of all this spike is mind-boggling, right, even if you don't follow natural gas, we know 3.05 is twice as much as 1.60! that's 100% move. >> it's a lot. charles: talk about the implications because these are the costs of our monthly utilities. there is the part nat gas plays, right? >> right. the other important thing, electricity, so a lot of your electricity is actually powered by natural gas. so between this 35% and this 14%, you have a lot of exposure. so most americans don't realize this is actually built into a lot of their household bills, both from electricity and directly from your heating. charles: work, i mean small businesses. >> yeah.

charles: if it is built in, that means you have to pay indirectly again. >> right. so we tend to focus on oil prices, you know. we're always talking about, you see the price at the pump. you're filling up every couple of weeks. these are sort of your monthly bills. you don't recognize this is coming from directly from natural gas, but there is a lot of exposure to that. that can certainly be built into the inflation ratings. charles: the federal reserve says forget about food and energy. >> because this actually powers your electric, this gets built into everything, you will see this is your operating costs, businesses have to pass on those increases. sew it may be energy but it will be built in. and ultimately lead to higher prices. >> one thing i love about your thinking. it's a problem, so let's make some money from it. >> that's right. charles: lpg is the symbol. cord electric, energy, chrd. full disclosure, i have subscribers in that as well.

we're talking about energy, we're talking about the consumer, this is your retail index, pure retail index, xrt, every session it is down, down, down. since smaller retailers have begun to report and freefall, in absolute freefall mode. i have got to ask you about that because it is not just, that was for the quarter. >> right. charles: look what is happening now. more recently going this way is the daily spending on credit card. >> right. charles: look at all the red! everything is red. except transit. we don't control transit. >> right. charles: furniture down, department stores down, home improvement down. i think the consumer is tapped out. >> we talked a lot about this, the consumer is up, they're shifting to smaller prices. because this inflation has persistent wages have not kept up, i think we're going to see not necessarily the consumer to stop spending but certainly a decline as we're seeing right here. we're going to spend less or find cheaper products. charles: i will give you props here. in the last quarter you gave us

some great names. pulte, epi, stm, sigh juan semi, are you still in the names. >> not epi. charles: before i get to the one that's a down, mcdonald's, big mac up 87% since 2019. mcnuggets are up 65%. french fries are up 140%. cheeseburger is up 215%. is this why you stopped going to mcdonald's? [laughter]. it's crazy, but it really is. why people are saying, listen, day-to-day this used to be where you want -- >> absolutely. they want to spend money on those things. mcdonald's has been mismanagement. better tasting food. a lot of others. same with starbucks. a lot of problems getting the food traffic back in the stores. charles: go back to the way you

made the food. make the apple pies the way they used to make them. great stuff, erin. >> thanks, charles. charles: how close are we to a.i. taking everyone's job? they say in the financial sector it a lot lows closer than anyone can fit. mark smith is fan of mid nvidia. i will ask him next. (♪) (♪) sup? -who are you? i'm your inner child. get in. listen, what you really need in life is some freakin' torque. what? horsepower keeps you going, but torque gets you going. what happened to my inner child craving love and acceptance? how about you love and accept this? p-p-p-p-powershot!

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charles: all right, folk, a.i. is everywhere with, right? there's a university of chicago patient out now saying a.i. just could not only be merely a tool to assist is investors, but it could play a more active role in making informed decisions. bringing in wells fargo adviser senior vice president mark smith. mark, i know how you feel. i know you love a.i., right? you love it. but how do you peel about maybe it taking your gig? can it do your job? >> listen, i would love to hire a.i., right, because until supplement everything i'm doing,

and that's why i think the thesises is you've got to own nvidia. if i could wave a magic wand and have an app that was going to give my clients optimal returns -- charles: what if your clients would could wave the app. i know they love are talking to you, but maybe not with the fees. >> if you think my job only has to do with performance, you'd be wrong. i don't know if you know billions, the show, but wendy was integral to axlerod's success. he couldn't make a decision without talking to her every day, wendy rose. anything that they're doing outside whether it's lending, whether it's going into a different sector, analyzing their business,giving them feedback, family dynamics is a huge thing. a.i. can't go and deal with a son who might be having an issue with substance abuse and the daughter who's over here marrying somebody you don't want her to marry -- [laughter] charles: mark, i want to have a talk with somebody. my man, let me talk the you for a minute. so i'm going to get back to

nvidia, but overall they announced this 10 for 1 split. it's been rumored for a while. we know it doesn't do anything for the stock per se, but history proves that the stock price does go up. we've got this here. so three months later a stock the splits 8% versus 2% normally. six months later, 14% versus 4%, and a year later here recently, 25% versus 9%. so it's very attractive for a lot of people when these companies announce if stock splits, and maybe that's one of the reasons nvidia's not giving back any agains gains today. >> the ceo said he did it for the employees, because at $10090 a share -- 100 a share, it's a lot easier for people to get into the if stock. it's going to give the meme stocks, listen, nvidia's up 10% in a day, let's get into that -- charles: one thing i do point out, retail has a cheaper price than wall street because they were guying it when it was a

gaming stock. -- buying it for about five years. let's go away from this. where else are you looking? today everything is getting hammered, sort of an anti-climactic move. you're starting to shift the safety and health care? >> i like health care because of the baby boomers. there's about 72 trillion right now that the baby boomers have, and they're going to pass on $65 trillion. and before they do, they're having a great time with consumer discretionary p. but what they're going to need in their older years is health care. and this is not a story that's going to make you rush tomorrow, but i think if you're building a portfolio and looking to dollar can cost average into a sector, health care has all the reasons why you would do it because of that class of citizens that have a ton of money to spend on health care. charles: i think they call it the silver sue ma'ammy or something like that, all that cash -- >> you got a little silver too. [laughter] charles: i think you would have some too if -- yeah, you're smart. thanks a lot, mark, appreciate it. nvidia still hanging in really, really nicely after a blowout earnings and strong the

guidance. my next guest says, you know, it's hard, really, it's hard for her to hide her pure glee about the move and the stock split. simpler trading very p of options, danielle shea, you're always smiling because you're always right. okay, so you were pounding the table, you have to be in end nvidia going into the earnings, you were right and it's holding up. although almost everything around it is falling apart. what's happening with this market? >> well, charles, i think it's normal to see a little bit of profit taking the before a 3-day weekend, so i'm not too concerned with the price action. we are seeing quite a bit of selling right here, but i think overall the nasdaq is holding up well. it's up above the 8 ema on the daily chart, and i think ultimately we're going to continue higher because nvidia has just flown more fuel onto this fire -- thrown more fuel if onto this fire. charles: this fourth industrial revolution, to your point, touch every facet of our lives. and at some point you hear euphemisms like productivity. historically, to me it means you

have fewer employees. is there the a point where it's counterintuitive with respect to investing? >> i don't know about investing, perhaps. respect to having a job, yes, but that's why we have to invests in symptom market because you never know -- in the stock market. charles: a lot of stocks have made really big moves. it's the tough the find anything so-called cheap here, but i know you still like names in the tech sector. if. >> that's right. so i'm looking at broad broadcom because they have earning coming up, and after we've seen a big move many nvidia postearnings, i think that's going the add some additional fuel on the fire. so i think broadcom could end up trading up to 1500, maybe 1550 and i'm looking at stocks that have pulled back. amazon made new highs and has pulled back, so i like amazon for a buy between $170-180 which it's at right now, and i also think pal row alto looks great,

you know? palo alto. pelosi's still buying, and it's come coming -- [laughter] charles: let me jump on that for a moment because one of the narratives that a lot of folks have been talking about for at least three years, maybe longer, is cybersecurity. now, we all know it's the relevant, but does the inconsistency sometimes bother you particularly with a stock like palo alto? it's not uncommon to be riding it really nicely, earnings come out and you're back to first base with just like monopoly. you don't collect $200, you might have lost it. okay, it got so exciting, i think we actually lost danielle. here's the bottom line, folks, there is a little of -- bit of selling going on right now, but i started the show by making a very important point. while nvidia's extraordinarily exciting and a.i. will change everything about our lye including investing, there's still the issue of economy, still an issue of inflation. we did have kelsey bell admit if it where most focuses won't,

lower income if homes are getting decimated, and that might be spreading further. we heard two major wall street ceos give us a warning, no rate cuts. in fact, maybe brace for stagflation, for a hard landing. yesterday when those fed minutes came out, this market kind of collapsed. it kind of collapsed ahead of the biggest earnings report that everyone felt great about, and everyone was right when it came to nvidia. same thing today. something is not right. maybe there needs to be some adjustment, so make sure you contain your glee, stay nimble and always watch liz layman for the last hour of trade the -- claman. liz: and watch you. bubble! [laughter] now you're hearing everybody talk about a bubble. charles, listen, investors are diving for cover especially in dow stocks as we kick off the final hour of trade. not only has dow 40,000 evaporate whatted, we are getting close to losing grip on dow 39,000. let's check the point loss for the blue chips at the moment. the dow is struggling mightily for the second day in a row, adding another 622nt