business will have a bigger loss but we don't know what they pay for shipping right now. >> thanks, courtney. we'll watch their twitter account. that does it for "the exchange." i'll join tyler for "power lunch" which begins right now. yes, indeed, it does, kelly, thank you very much. we'll see you over here in just a minute or two. i'm tyler mathisen welcome, everybody new at 2:00 today, a monster week for investors and earnings tsunami. the fed, jobs, trade talks we'll tell you what's at stake for this record rally and get you ready for what's ahead. boeing ceo under fire taking unscripted questions for the first time since the deadly ethiopian airlines crash did he do enough and disney's "avengers: end game" raking in more than a billion dollars at the box office in just the opening weekend. we will speak with one of the directors on how much fuel that movie has left and stocks carving out some small gains. enough to push the s&p to new

record intra-day highs "power lunch" starts right now and as we alluded there at the top, it is a big week for the bulls and the record rally busiest week of earnings season. about 150 companies in the s&p 500 report their numbers dominic chu is all over it and then a fed decision and jobs report steve liesman as you might expect is on that and kayla tausche on the trade talks we between the u.s. and china now entering a crucial phase and let's begin with dom chu at the sme. hi, dom. >> reporter: 150 companies in the s&p 500 are reporting if you take a look at the calendar, they are the names that you know, maybe love, maybe hate but of course, this afternoon, it's alphabet, the parent company of google, apple on tuesday, along with ge, wednesday, you've got square, also qualcomm, thursday, cbs, dow, gilead, friday, adi s

adidas, and in the mix as well, their numbers are coming out this is a big deal the reason why, this stake, pretty much halfway through earnings season and according to data from refinitive and others as expected we will in fact see earnings decline of about 0.2 o 1% and a gain of 5% from s&p companies. here's your halftime report so to speak possibly an earnings decline 5% revenue beat of every other company but this week will be a true tell who the 150 companies. kelly, back to you guys. >> dom, thank you very much and a ton of economic data out today all leading up to the fed decision wednesday steve liesman is back from vacation >> vacation. >> was it fun? was it good? >> it was a fly ride and a bottle of tequila involved

you are ba >> you are back to tell us about the economy. >> the federal reserve is thinking hard this week as will i about whether growth could be stronger than they think and whether that's the funds rate at 2.4% is in the right place personal spending for march. bidding expectations with the 0.9% and offsetting january and february only modest 0.1% but sharp decline in farm incomes. wages and salaries are healthy up 0.4% and all that with modest inflation. the fed referring to the inflation up 1.6% year over year that compares to the target of 2% fed officials likely will discount that strong first quarter gdp report and 3.2% number by trade and inventories but as those factors wear off last quarter, this quarter, some economists expect to be replaced

by stronger consumer and business spending. all that makes the market expectations for rate cuts seem a little bizarre september, the rate cuts 47% rising above 50% for october, december, 63%. look at that, 88% near darn certainty, if i could say that on cable television. >> you can say that. >> 80% in january. i think the market is a little bit too worked up about a cut probability. the fed may not hike because of stronger growth but sure ain't won't be cutting either. ain't won't. my whole language went all terrible on vacation. >> that's what happens when you drink tequila. >> no, i'm off of that >> are you, thank you very much. the treasury secretary steven mnuchin and robert lighthizer, back to beijing for talks. will this finally lead to a deal kayla tausche has the latest >> i don't think you get frequent flyer miles on a private jet, but i'll ask, tyler. two day round of talks begins

this evening in beijing. the conference in l.a., said the u.s. and china are getting into the final laps saying i think both sides have a desire to reach an agreement and still significant issues that are e open, end quote. the top one, enforcement governance body created to enforce the deal skeptical it will work and then potential for new chinese tariffs on new u.s. products that would be swapped out for agricultural goods and finally, what does china get in return from the u.s.? the u.s. has said, this would be a two-way deal this week is likely to produce a written statement summarizing any progress but senior administration officials have said vice premier liu he the morning post said president xi could visit the u.s. as soon as june but all of that is up in the air. >> kayla, thank you very much. we've got the trade talks, the the economy, earnings, plus a

stock market that is hitting new highs. how should you position yourself right now? joining us is art hogan. always good to see you the market has kind of snuck up on me. new highs, nasdaq and the s&p and that's good enough for me. let the dow come along in its own pace. >> sure. >> but does this suggest that if i am not fully invested now that i have missed the filet and should wait? >> that's a great question, a question we get all the time gone too far too fast and should wait for my money to work. that works about zero percent of the time if you're a long-term investor, putting money to work every month in a 401(k), average and catch some of the highs and some of the lows and i think that's a way to think about it but the market in and of itself and what's driven the move we've seen so far this year and arguably since december 24th, a lot more to do with things getting incrementally better and data in february was better than

january and march is better than february i think that's going to continue this year. i think that multiples on the s&p 500 look relatively full right now. if we assume that the earnings are going to look exactly the same for the next three months as we've estimated but the first quarter is proving that our ability to estimate earnings isn't that great >> that's what i was going to ask you. it seems we began the year with a lot of worries about the health of the economy. the economy grew 3.2% and you can nitpick the number if you want, as many have we were also worried about an earnings recession hasn't happened. >> not so far. >> it's interesting. earnings recession is a term we made up because it makes for a good -- very much like a melt-up in the market and kelly wrote a great piece on this today which i love i understand meltdowns because i raise children i know what a meltdown is but a melt-up with a negative connotation to it. the market has gone higher for no apparent reason except all the things we talk about as it pertains to the market have gotten better than we thought they would the economy is doing better and

earnings doing better than we thought it would and the forecast for the rest of the year hasn't moved the s&p 500 down for 19 or for '20 i think we're just afraid of success here and i think that feels like there's not enough participation in the market. when you look at both institutional investors and retail investors, the participation in the rally has been poor. >> and remains poor. the interesting thing to me about the melt-up which larry fink said he sees more likelihood of that than a meltdown these days but the idea has been out there it's just that, that would be a disconnection from sort of fundamentals, right? so we're talking about people worried about the stock market all of the sudden doing the late '90s dot-com thing and doesn't seem like we're close to that happening. that would be the worst thing that would happen. what would it take for you to say, all of the sudden, this rally, i can't understand it at all? >> that would be crazy if we were two multiple turns higher

than we are or if, in fact, this good first quarter earnings season brought estimates down for the entire of the year that's not happening i would be concerned if we were fully invested, investors came in and said, this really looks good and participation on the ipos coming out was much higher and pushing things, you know, in crazy directions we're not seeing any of that we are seeing a record number of ipos coming out. sometimes that signals the end of the cycle but actually being priced prudently i think the market is keenly aware of the fact you have to do this right so my biggest concern is that we're going to get a deal with china and with prices into that, that's positive, it's going to be disappointing regardless of what happens it's going to be very much that we bought the rumor, sell the news and then with may, the worst six months historically for the markets. that doesn't help us we got ramped up about china we sell that to a certain extent and perhaps, would have said the next 5% up or down, more

likelihood it's down than it is up from here longer term, the market is in a pretty good place. >> art, thank you very much. art hogan. now the battle for anadarko petroleum, continues today as the company is considering selling itself to occidental let's get to brian sullivan with the details. >> reporter: a lot is going on occidental, by the way, was based here for years in los angeles where we are now moved out to houston later today, i'll be on a panel with vicki, the ceo of occidental i'm not sure he's going to get into the deal terms. we'll ask her and bring headlines as they occur. here's the situation as it stands last night, anadarko said we've got a deal to be bought by chevron but occidental has a deal that may be work on a cash and stock basis worth 10% to 15% higher, so it changes the valuations

anadarko said we will engage with occidental but here's the thing. once anadarko, with occidental, rather, chevron has four days to come back with a counterbid if they're going to i spoke with two oil traders looking at where the stock prices are right now, they both believe that chevron is likely to come in with a slightly sweetened offer. however, nobody believes, guys, at least that i've talked to, chevron is going to come in above the $76 a share equivalent that occidental offered. you're saying to yourself, why would anadarko accept a lower price for their asset than occidental is bidding? the answer is very simple. the belief is that anadarko shareholders would prefer to get chevron stock for a lot of reasons. bigger company, more cash with the balance sheet, more stable equity, it's performed better

than occidental stocks so if chevron comes in, guys my sources say, don't expect it to be above 76 but they do think chevron will come back but it's a one and done deal and remember, if chevron takes their ball and goes away, then decides, guys, not to rebid, it's a $1 billion breakout fee, which has turned a lot of heads anyway but a break-up fee to not do a deal? i'll take that any day of the week and twice on sunday. >> especially if it's versus a bad deal or if that's what they perceive we'll talk more about this with david katz, chief investment officer with matrix advisers not a fan of the occidental deal and wrote urging them not to make a bid that's because you think occi is overpaying or why don't you like this bid for anadarko? >> we think anadarko is a great asset but got to put it into perspective. occidental a $40 billion market cap and buying something a $35

billion market cap and if you look at the debt, both $50 billion. we think this company is simply too big for them the market has it right, we think. occidental moved down to 60% and it doesn't like it there is that $2 break-up fee. when you talk about what chevron has to bid, assume they bid $2 less to be equal because even if you take it off, take it for the break-up fee but the valuable asset right there and the best way to maximize shareholder value is to buy something smaller, say, $10 billion or $15 billion. great assets and a good operator, lots of companies very interested and we'd rather get the 30% or 40% premium than have a 10% or 15% sell-off and 11% sell-off. >> i think the occidental shareholder here, so i'll ask you about the two other companies. so chevron's bid for anadarko, does that make sense to you from

a strategic fit? is that the right asset? in other words, you have an opinion on things playing out that way instead >> we do we also own chevron and we like the bid from the chevron side. and the reason we like the bid from the chevron side is chevron is about five times bigger than occidental so the bid represents about 10% of the value of the company. so they're able to do it in a creative way without risking their balance sheet. from occidental's perspective, if oil prices move back down, all of the sudden, their leverage might become suspect. you don't have those issues with chevron because they have a much bigger company and stronger balance sheet. >> occidental, i'm told, is a very successful and big operator in the permian area and that anadarko's assets there are one of the things that attract it. which would be the better fit apart from any of the balance sheet things apart from any of the spread sheet stuff? which would be the better

operational fit? occi or chevron? >> both companies argue they're great fits chevron says a great fit and a lot of properties. occidental says the same thing we don't have a strong opinion on that. probably both very good there but the point is people went in to the permian and if you did, anadarko is a great property and occidental is a great property with companies like exxon and royal. >> i can't imagine there's not other big players that would like to see some of the assets at work in the permian right now. so my whacky question is, let's say chevron doesn't get this company and occi does. could you see a day where chevron would buy it to take over the two of them at once >> that >> they'd be big enough too. >> the great thing, it's a 10%, they're buying something for 10% their size in terms of buying something 50% your size, 70% your size, that

really is betting the company. and as we know, oil prices are very, very volatile. so we wouldn't be that inclined for anybody to make that big of an acquisition now, whoever doesn't get the anadarko, devin has been rep repositioning the portfolio and a few others to make sense for some of the larger players >> all right david, thanks very much. >> thanks a lot. >> david katz with matrix asset advisers. taking questions from shareholders for the first time since the 737 max crash in ethiopia we'll tell you what he said and hotel giant marriott has an answer to growing competition n'om airbnb. cat beat them? join them. "power lunch" back in two. if you have a garden you know, weeds are lowdown little scoundrels.

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now that's simple, easy, awesome. xfinity xfi gives you the speed, coverage and control you need. manage your wifi network from anywhere when you download the xfi app today. boeing meeting with shareholders today as the company continues to deal with the aftermath of the 737 max crisis this is the first time that boeing's ceo took unscripted questions since that ethiopian airlines crash now almost two months ago. ylan mui is live in chicago with more hi, ylan. >> reporter: tyler, it was unscripted but ceo dennis mullen berg did not stay too far from the talking points that safety is the company's top priority, they own this mistake, and they are making steady progress toward getting that plane certified and back in the air but mullen burg did not give updates for when that might

happen. >> we're going to work closely with the airline customers and the faa and with regulatory authorities around the world and have safe reentry into service we're going to be diligently doing that airplane by airplane with the customers i think getting it back up and flying is obviously a key step in rebuilding confidence. >> now boeing has obviously taken a big hit because of this controversy and these crashes. the 737 max program was supposed to account for 48% of their revenue this year. during the news conference, muilenberg was asked directly if he considered resigning. safety was his focus right now but not an inherent design flaw in the mcas system but said it was a chain of events and the mcas was a common link and intends to break that chain. back to you. >> ylan, thank you very much

let's break down how he fared during the intense shareholder meeting. he took about 15 minutes worth of questions, five in all. joining us to discuss is dean crutchfield, founder and ceo of crutchfield partners what grade would you give him? >> maybe a d plus. maybe a "c" minus. i think he should have been saying this months ago to be honest with you after the lion crash. fixing the software after that, which is an admittance there is a fundamental design flaw. i flatly accept to refuse there's not. there is with the max 7. they've shown it, admitted it, trying to course correct it but hundreds of people's lives have been lost just for a software glitch >> 48% of revenue comes from this particular aircraft, this 737 max aircraft who will hell is going to want to get on one of these >> i think there's a public perception, the public forgets as long as there's affirmation

things are being done. shareholder result is not a strategy it's a fact. and that's what mullenberg is looking to deliver and i think the public concern is something that's not a priority on boeing's mind. i think ultimately, it's their share value. let's be honest. it's a duopoly >> the share, you cannot be an airplane company and expect to have your shares have any value if people don't think your planes are safe. in that regard, the two are the same whether looking at the share price per se, or the company itself, they have to make sure these planes, as you said, are safe, that the public is told or made aware they are safe what could he have done today to better convey this message than what you saw earlier >> i think he could have been more affirmative about the fact that they've accepted the responsibility for this more than what they did and at the end of the day, they're protecting themselves. it's a sludge bank of legalese, sticking to the points and not

looking to stray too far and what dennis showed is they've got the personality and the dexterity of, the defensive posturing. this is a classic no go crisis situation. you're denying it. deflecting it. you're delaying it three no-noes of crisis management and that's exactly what they've done. >> i think back, dean, i'm with you on this. if you've got a product that people don't want to patronize, you've got a real existential problem in your product line think of the ford pinto. it killed that product audi when they had their issues with rear acceleration it knocked audi into a ditch for years, for years chipotle on a different level. the same thing this could cripple this company for a long, long time. >> i agree because the max 7, the max series is the future of the company. but like i said, it's a duopoly.

airbus can't make that many aircraft whoever owns the stock of boeing, i'll be honest, doesn't really care. they look at 30 years. >> i think they trust the company's history and say, look, this company, like i said before, everybody has the same goal the planes need to be safe to fly, so you can be a shareholder, the public, but you know that's the ultimate goal. like you said, how they're handling this crisis is are they being transparent enough with the public and finally on this earlier, a fairly short press conference he only took five questions as tyler mentioned. should he have let reporters, which are the voice of the country and the voice of the investigation, get more of their questions and to at least say we're taking this all in and answering in every way we can? >> you're the ceo of the company. i'm not looking anywhere else or captains or engineers or quality control. i'm looking at you you're that throat to choke and right now, you're next right out in front of me and i want to grab because i can't believe the lack of compassion that you're showing, the lack of empathy

seems to be a distinct lack of that and i know, again, legalese and we're talking billions of dollars of litigation here and it's coming up and they know it. >> dean crutchfield, appreciate it. a topsy-turvy monday in the vacation industry. marriott renting homes air bn in hotels we'll explain this role reversal the s&p and nasdaq, well, they've hit new record intraday highs as the s&p and both of them all up a fifth to a third percent. ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us,

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less than a day after arab bnb said it was trying in the hotel business, marriott is trying hotel remembntals. >> i guess the point is they're all converging it's going to look very similar one day but each of them are giants in their hone spaown spa making major territories in just a day or less. it will collaborate to create essentially hotel rooming

starting with rockefeller plaza. marriott will take on the home sharing product and airbnb has the head start 5 million rooms on the platform and marriott with 1.3 million. these are only hotel rooms but airbnb is trying to appeal to higher end and business travelers. why? well, this morning, ceo brian chesky telling us building a platform with multiple platforms is key before they go public that have a listen. >> most start with a single product. amazon, multigenerational company. you have to offer multiple products and we want to offer the end-to-end trip. this is all part of that the sooner you can get your vision out, the more investors know what they're buying. >> as for the timing of the ipo or perhaps a direct listing, chesky said the stream of tech unicorns, pinterest, lyft and uber, we're seeing now, does not change his plans to go sooner

but they would be ipo-ready by the end of this year doesn't mean they'll go but be ready and these guys, airbnb, they don't need to raise money >> they don't? >> they've raised more than $4 billion in the private markets so that's why i said, or a direct listing you don't know that's something they'd do but. >> i didn't know it would be feasible for them. i give them a lot of credit for airbnb >> nice to have you in the house. >> thanks for having me. google earnings after the bell we'll tell you the three most important things you need to know ahead of that eagerly awaited report one expects to hike rates in the second half of the year. i said hike rates this year. guggenheim's scott and disney's hollywood dominance. smashing box office records. all this and more when "power lunch" returns

welcome back, everyone i'm sue herera here's your cnbc news update at this hour. the leader of the islamic state group al baghdadi purportedly appeared for first time in five

years released by the extremist group's propaganda arm but nbc news does not know when it was shot or whether it was al baghdadi israel's ambassador to the u.n. demanding action anti-semitism following the attack on the synagogue in california. >> the time for having a conversation is over what the jewish world demands around the world is action and now it is simple engagement in anti-semitism must be punished. >> no arrest in the shooting of the washburn and other who was drafted by the new york giants earlier. dwane simmons.

back to you. >> thank you very much alphabet reports earnings after the bell today search giant up more than 20 th% this year and josh lipton has three things investors need to watch. hi, josh >> tyler, let's dig right in to the big themes here. one is revenue the street thinks alphabet will report $37.3 billion now, that would imply 20% growth on the top line. one reason, facebook's recent results, there is a high correlation typically analysts remind us between facebook and google two big investments, hot new areas where it sees long-term growth potential like cloud computing. the company, remember, doesn't actually break out that segment's financial results. so investors left to guess how it's performing and the google share of the cloud infrastructure market in 2018, 9% badly trailing the big rivals like amazon and microsoft and also making big investments in

wamo sun trust said they have to in order to keep up with rivals like uber but takes outside investments. would waymo ever consider the same and final consideration, google in the cross hairs and facebook just said, gdpr is having an impact does the ceo see the same? back to you. >> shares just hit all time high josh, thanks very much up for 12 sessions out of 13 let's bring in brent phil, equity analyst at jeffrey's. josh just laid out the themes. as mentioned, we're talking about an all-time high for the shares for 12 out of 13 days, a tough backdrop to report earnings into >> numbers across large cap internet have been fantastic so we think there's a great entry tailwind the stocks still cheap but google will grow mid teens, so very few stories in tact where you're trading the discount for the growth so we think that's

facial in the search for the next billion users, we think they're putting the right investinvestm, the home, waymo and then the cloud, beyond advertising. we think google is doing the right thing and then embrace the oddness. so every odd year, google tends to outperform the market we're in an odd year and underperformed last year. >> every odd -- come on. every odd year thees fsis. >> i'm not making this up. in the last ten years, look at the outperformance so we're not bending them that just saying, look, it's a factor to consider. obviously, the valuation and the fundamentals are the most important thing to look at. >> they're expected to post 27% revenue growth would that spook you at all? >> i think it would spook the market their mantra internally while

they don't give a lot of guidance, we think they're pushing for 20% top line it's coming at an expense to margins. margins have been creeping lower, so yeah, i think anything, it's the same thing with amazon. the minute it breaks below 20, there was some concern but we think if they can post high teen, low 20% growth, continue and show that there's a floor on margins. they up their buy back. up over 100 billion in cash. they're taking baby steps. not making huge jumps, that's what wall street would like to see but the valuation to us is very favorable. >> you've told us how this stock is going to go higher. tell us how much higher you think it will go how much more room is there to run on your base case and on your best case and your worst case >> it's interesting. if you look at software, you have multiples trading at 20 or 30 times revenue the stock trades at 11 times, so

when we think, again, there's plenty of room for the stock to go, we still see potentially another 20% upside especially if they continue to execute and look, if the rest of tech is weak, we do think it could be a beneficiary of giving the valuation support, given how hard these other names have run and so there's a backdrop in terms of support level, support levels relative to the growth. google has not done a great job of articulating their long-term strategy, a clear framework. google has chosen that route and wall street would just love to have more color, but they've gotten the discount because of that so if they can get more color, we think the multiple could go a lot higher if they chose to give a little more color on the outlook for which, again, they've never done. >> we'll see if they take any steps in the direction

thank you very much. with jeffrey's. after calling for a rate cut one of the biggest bond investors expects the fed to hike in the second half of the year he'll tell us why next -driverless cars... -all ground personnel...

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no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. we are gearing up for the big fed decision on wednesday and our next guest was calling for the fed to cut interest rates but now he says we could see a hike as early as the fourth quarter of this year. let's go to brian sullivan at the milken conference with ceo

scott minor. >> one thing i've learned in life, don't make a body builder angry but i'll do my best to do that right now before the interview, he's out with a new piece this morning and just on cnbc.com with the possibility for rate hikes i said you flip-flopped, the rate cut man >> look. you asked me the question, what's the probability the fed will cut rates i said 50% and sure enough, the market is priced for that. but yet the economic data coming in, they're showing that the second quarter is actually gaining momentum so now i know the fed is focused on inflation, by the time we get into the third quarter i'll think we will see inflation

building again and barring a crisis in europe or latin america, i think the fed will be in that mode >> those words, by the way, got so much attention is that we were talking hike, you said 50/50. by the way, half a chance, a coin flip is a big deal. the fed went dovish and thought would know something now you're right now you believe the more likely outcome at the end of this year is a rate hike that's rig >> that's right. the first quarter, maybe the fourth quarter the fed back in the mode of raising rates. we'll see the yield curve start to steepen and long-term rates arise. the ten year note around 2.5%. i think we'll probably move back to the neighborhood of 3 or so and stocks and risk assets continue to do well until we finally get to the point where the fed actually has to start moving >> as you pointed out, the market is priced largely for a cut. if you're right, a lot of assets have to reprice. what's going to happen are equities going to drop

are bonds going to drop? >> i think near term, it's going to give the reason that the fed will start or the market will start repricing for rate hikes is because they'll view the economy as strong. that will be viewed for stocks as earnings will be strong that second quarter earnings will probably exceed expectations and the market will price for this but eventually, these things come to an end but we'll let that go until we get to the third quarter. >> mr. 50/50 cut now in the high camp we appreciate you coming on first on cnbc. scott minor, thank you >> guys, before i let you go, obviously, the boeing 737 max, the faa, the investigations, the ungrounding of the plane is another massive story out here as well. a few minutes ago, we had the chance to catch up with secretary of transportation elaine chow and i asked her where we stand with the boeing 737 max investigation. >> the company is resubmitting

their computer software system and the thefaa will be reevaluag it i'm grounding these planes all depends on what we find in the software let me assure the flying public that once again, safety is number one and the faa will not sign off on any fix that they do not deem to be fully satisfactory >> reporter: okay, kelly, there you go obviously, i tried to pin her down in a timetable as well. it's very much in flux but first comments recently from elaine chao, secretary of transportation, about the 737 max controversy that's embroiled the government >> brian sullivan, thank you "avengers: end game" is using super human strength what a billion plus dollar opening means for diey asnnd for hollywood's summer season. back in two.

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welcome back to "power lunch. "avengers: endgame" premiered this weekend and it made a ton of money it shattered pretty much every box office record. it raked in more than $1 billion globally, which used to be a feat for a movie to achieve

ever it did it in the first weekend it did 350 million in the u.s. and accounted for 90% of all ticket sales let's bring in julia boorstin to break these down for us. although they seem pretty self-evident, julia. >> well, kelly, "avengers: endgame" was a must-see event around the world co-director joe russo telling me that his film's success is not despite the rise in streaming platforms like netflix but because of it. take a listen. gli think they're supercharging each other in a way and i think you have to give people a communal experience. you've got to give them something that they want to go sit in a theater and see with other people and i do think eventizing is critical for theatrical success right now, creating that conversation on social media is critical but serialized storytelling is really becoming the future of narrative. >> russo telling me the film would not have been able to achieve the success it saw this

weekend without social media creating a global conversation and a fear of missing out. you can find more of our interview with joyceo on cnbc.com tyler? >> jewel kra, thank you very much and you're going to stick around as we bring in matthew bologna he is the editorial director for the "hollywood reporter. in my area every one of the screens in the large amc multiplex was devoted to this movie all weekend long does it have a shot to become the biggest box office success of all time, outstripping "avatar" >> i think it actually does. it will be a key to see what happens this weekend, how much it declines. but 2.8 billion is the benchmark set by "avatar." and we're at 1.2 after five days that's pretty remarkable and what you saw was not unique. amc theaters and others were playing this movie around the clock. 2:00 a.m., 5:00 a.m. sold-out theaters everywhere

>> and they were adding shows throughout the weekend, i'm told did disney do anything different with respect to the release of this movie in other words, often films come out in the u.s. first or in selected international markets but this felts like it was a full-on global simultaneous release. >> it absolutely was, tyler. and i think we're in a situation here where it's challenging to schedule a movie so you could actually release it around the world the same weekend because you have to deal with local holidays, school vacations and disney managed the logistics where they could find a weekend that would really work around the world. >> you would think that stock the movie theaters would be way up on this this concept of disney kind of saving that whole experience and yet shares of amc are roughly unchanged today. i'm just curious, why do you think that is? >> it's an interesting point i think that this is a unique

phenomenon, "the avengers. this is something that has been built up over 22 films, 11 years. there is a massive built-in awareness and want to see for this particular movie. we'll see if it lasts throughout the summer up until this weekend box office receipts were down 16% year over year so we'll see >> so julia, who goes to see this >> well, tyler, apparently everybody goes to see this movie. if you just look at the numbers, you really have to bring a pretty broad audience. it's not just the core fanboy, fangirls who came out to see this there was a sense there was some comedy -- i was just talking with matt here about how there are comedic elements, it's serious, and then there's a lot here for the core real marvel audience here. but i think the question is if you look at the rest of the summer there are more films, more marvel films, and we'll have to see how much the fact that people went to theaters,

they felt like they were part of something, they were exposed to more trailers. it's going to get people to come back to some of the other disney films that are coming up including a live action "lion king" as well as the upcoming "aladdin." sought question is how much this is going to revitalize the box office and remind people they like going to movies >> so matthew, what does this say about i think frankly the brilliance of bob iger buying this -- these properties, this studio, and folding it into arguably the strongest content machine on earth >> absolutely. the moves that iger has made in bringing in "star wars" with lucas film and pixar, which has "toy story 4" latest this summer, that could be another billion-dollar grosser and most importantly with the marvel universe. i mean, this has been not only a brilliant move from a deal standpoint but also in

execution. you have to give credit to kevin feige, who runs marvel studios 22 films without a miss. that is almost unheard of in hollywood. >> that is really true thank you so much, matt. we appreciate your time. julia, great to see you. >> thank you all right. oz pearlman picked disney in our stock draft last week, and this year you had the chance to play along. nearly 8,500 people entered our stock draft challenge. mr. wonderful got the most votes with 13% of you saying -- 14.8% saying that he has the best chance to win. nick lowery, 13% of you said he would repeat as champion maria ho and bethenny frankel rounded out the top four in your vote whichever team is atop the standings after the close on may 28th a viewer who picked that team will win a trip to new york city and a tour of cnbc. you can come see kelly's desk. mine too go to -- >> whatever we've got for lunch today. and seema too.

>> and seema we often have her on at lunch. go to cnbc.com/stockdraft to keep up with the leaderboard >> but don't go anywhere "check, please" is right after this global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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south bay. it is very unprofitable. it saw $1.9 billion in losses in 2018 which doubled the year before but is growing quickly >> those losses got big headlines. and they're the we company >> we company. >> we will continue to follow n that and thanks for watching "power lunch." >> we will see you tomorrow. "closing bell" right now it is the final hour of trade. i'm sara eisen >> and i'm wilfred frost boeing's ceo facing shareholders today and there was one theme that kept coming up. >> there's nothing more important to us than the safety of people who fly on our airplanes. our commitment to safety is unwavering we're very focused on safety. >> we never stop from making safety improvements. >> we will continually look for opportunities to improve safety. >> i'm very focused on safety going forward. >> was it enough to convince investors and