the confirmation process, i had the distinct honor of having 95 personal meetings with 97 sitting senators and we had substantive and engaging conversations about my approach to judging and about the role of judges in the constitutional system we all love as a brief aside, i will note these are subjects about which i care deeply. i have dedicated my career to public service, because i love this country, and our constitution and the rights that make us free i also understand from my many years of practice as a legal advocate, as a trial judge, and as a judge on a court of appeals, that part of the genius of the constitutional framework of the united states is its design and that the framers entrusted the judicial branch with the

crucial but limited role i've also spent the better part of the past decade hearing thousands of cases and writing hundreds of opinions and in every instance, i have done my level best to stay in my lane and to reach a result consistent with my understanding of the law and with the obligation to rule independently without fear or favor. i am humbled and honored to continue in this fashion as an associate justice of the supreme court of the united states, working with brilliant colleagues, supporting and defending the constitution, and steadfastly upholding the rule of law but today at this podium, my mission is far more modest i am simply here to give my heart felt thanks to the categories of folks who are

largely responsible for me being here at this moment. first, of course, there is my family mom and dad, thank you not only for traveling back here on what seems like a moment's notice, but for everything you've done and continue to do for me. my brother, is here as well. you've always been an inspiration to me as a model of public service and bravery i thank you for that i love you all very much [ applause ] >> to my inlaws pamela and gardener jackson who are here today an my sisters and brothers in-law, thank you for your love and support. to my daughters. i bet you never thought you'd get to skip school by spending a day at the white house this is all pretty exciting for

me as well, but nothing has brought me greater joy than being your mother. i love you very much patrick, thank you for everything you've done for me over these past 25 years of our marriage you've done everything to support and encourage me, and it is you who have made this moment possible your steadfast love gave me the courage to move in this direction. i don't know that i believed you when you said that i could do this, but now i do [ applause ] >> and for that, i am forever grateful in the family category, let me briefly mention the huge extended family, both patrick's and my own watching this

countries all over the world i hope to personally connect with you over the coming weeks and months moving along to people, those who provided invaluable support to me professionally in the decades prior to my nomination and the many, many friends i have been privileged to make throughout my life and career. i know that everyone who finds professional success thinks they have the best mentors, but i truly do i had three inspiring jurists for whom i had the privilege of clerking each of them is an exceptional public servant, and i could not have had better role models for thoughtfulness, integrity, honor, and principle both by word and deed.

my clerkship with justice briar was an extraordinary gift, and one for which i've only become more grateful with each passing year justice briar's commitment to an independent, impartial judiciary is unflagging. and for him, the rule of law is not nearly a duty. it is his passion. i am daunted by the prospect of having to follow in his footsteps, and i would count myself lucky, indeed, to be able to do so with even the smallest amount of his wisdom, grace, and joy. the exceptional mentorship of the judges from my clerk has proven especially significant for me during the past decade of my service as a federal judge. and, of course, that service itself has been a unique opportunity. for that, i must also thank president obama who put his faith in me by nominating me to

my first judicial role on the federal district court this brings me to my colleagues and staff of the federal district court in washington d.c. and the d.c. circuit. i am deeply grateful for your wisdom and battle tested friendship i also want to extend a special thank to all my law clerks many of whom are here today who have carved out time and space to accompany me on this professional journey i'm especially grateful to jennifer gruda who has been by my side for nearly the outset and has promised not to leave me as we take this last big step. to the many other friends that i have had the great good fortune to have made throughout the years, from my neighborhood

growing up, from miami paul meadows senior high school, and especially the debate team, from my days at harvard college where i met my beloved roommates lisa fairfax, nina coleman simmons, and ant wa net, they are truly my sisters thank you. i have too many friends to name, but please know how much you've meant to me and how much i have appreciated the smiles, the hugs, and the many atta girls that have propelled me forward to this day. finally, i'd like to give special thanks to the white house staff and the special assistance who provided invaluable assistance in helping me to navigate the confirmation process. my trusted sherpa, senator doug

jones, was an absolute god-send. he's not only the best story teller you'd ever want to meet, but also unbelievably popular on the hill which helped a lot. i'm also standing here today in no small part due to the hard work of the brilliant folks who interact with the legislature and other stake holders on behalf of the white house including lisa, reema, toma, ben, and andrew. [ applause ] i am also particularly grateful for the awe-inspiring leadership of white house counsel dana

reemas [ applause ] of page herwig [ applause ] and ron klain. [ applause ] they led an extraordinarily talented team of white house staffers in the herculean effort that was required to ensure that i was well-prepared for the rigors of this process and in record time. thank you all. thank you as well to the many, many kind-hearted people from all over this country and around the world who have reached out to me directly in recent weeks with messages of support i have spent years toiling away in the relative solitude of my chambers with just my law clerks

in isolation, so it's been somewhat overwhelming in a good way to recently be flooded with thousands of notes and cards and photos expressing just how much this moment means to so many people the notes that i've received from children are particularly cute and especially meaningful because more than anything, they speak directly to the hope and promise of america it has taken 232 years and 115 prior appointments for a black woman to be selected to serve on the supreme court of the united states [ applause ] >> but we've made it [ applause ]

we've made it. all of us. all of us. and our children are telling me that they see now more than ever that here in america anything is possible they also tell me that i'm a role model that i take both as an opportunity and as a huge responsibility i am feeling up to the task primarily because i know that i am not alone i am standing on the shoulders of my own role models, generations of americans who never had anything close to this kind of opportunity but who got up every day and went to work, believing in the promise of

america. showing others through their determination and yes, their perseverance, that good, good things can be done in this great country. from my grandparents on both sides who had only a grade school education but instilled in my parents the importance of learning, to my parents who went to racially segregated schools growing up, and were the first in their families to have the chance to go to college. i am also ever-buoyed by the leadership of generations past who helped to light the way. dr. martin luther king junior, justice thurgood marshall, and my personal hero, judge constance baker motley

they and so many others did the heavy lifting that made this day possible and for all of the talk of this historic nomination and now confirmation, i think of them as the true path breakers i am just the very lucky first inheriter of the dream of liberty and justice for all. to be sure, i have worked hard to get to this point in my career, and i have now achieved something far beyond anything my grandparents could have possibly ever imagined. but no one does this on their own. the path was cleared for me. so that i might rise to the occasion and in the poetic words of dr. may

maya angelou, i do so now while bringing the gifts my ancestors gave [ applause ] >> i, i am the dream and the hope of the slave. [ applause ] so as i take on this new role, i strongly believe that this is a moment in which all americans can take great pride we have come a long way toward perfecting our union in my family, it took just one generation to go from

segregation to the supreme court of the united states [ applause ] and it is an honor, the honor of a lifetime for me to have this chance to join the court, to promote the rule of law at the highest level, and to do my part to carry our shared project of democracy and equal justice under law forward into the future thank you again, mr. president, and members of the senate, for this incredible honor. ♪ >> and a very poignant and heart

felt message from ketanji brown jackson as she becomes the first black female supreme court justice to the supreme court >> you heard president biden refer to today as a fundamental shift in america we also saw judge jackson several times wiping her tears away she thanked the people who helped her on this incredible journey to become the first black woman to sit on the supreme court, invoking dr. martin luther king junior, invoking maya angelou in her remarks. practically speaking j there will still be six conservatives and three liberal justices, but the makeup of the court will look very different. and president biden said that was really his goal when he made that pledge on the campaign trail to nominate a woman to sit on the supreme court this was also a win for democratic leadership in

congress who struggled to unify the progressive and moderate wings of their party all 50 democratic senators voted in favor of her. they were able to win over three republicans to their side as well the president thanked chuck schumer in his remarks for keeping the conference together. chuck schumer likes to say that judge jackson is brilliant, beloved, and belongs on the supreme court. and now it is official the senate has confirmed her to the historic position as a first woman, the first black woman to sit on the supreme court >> elon, thank you very much by the way, hi, herb welcome to "the exchange". let's go to the markets where we see solid gains. the dow up 266 points. the s&p up 8 the nasdaq down 58 84 points and little wonder, rates moving higher with the ten-year above 2 .7 % for the first time in three years. let's get straight to dom down at the new york stock exchange for us today kelly, to your point, that

2.7%, it was 2.73% that was the intraday high in the ten-year treasury note yields that represents the late cycle high, the most recent push in interest rates higher that's having a negative effect and underperforming side of things for the nasdaq kpozive. 13,812 off the worst levels of the day. down two-thirds of one percent the s&p 500 holding steady, about 45 00, 4508 the last trade. a quarter percent trade. dow industrial up 262 points a the highs today, up roughly 325 points to give you an idea of the context here, we are up but off the best levels of the session also watch what's happening over the course of the last week. we've seen the higher interest rates take the toll on one specific and very important part of the market, that is the technology side of things. the worst performing sector over the last week in the s&p down three and a third percent. meanwhile, you can see the health care and the energy sectors were the best performing

ones to give you an idea of how the week is shake out so far today stocks to watch. fin tech, especially robin hood. and the reason why is because analysts at gold man sachs have cut. coin bastee remains a buy at global the entire fin tech space, paypal, the global fin tech down one-half of one percent. you can feel the reverberations. goldman says they don't think robin hood has an easy path to profitable in the path to 2023 the street's estimates are too high we'll see if the fin tech industry can break the longer term downside trends you've seen >> they have been languishing. dom, thank you it's been another incredibly fast-moving week as the fed ratchets up the tightening plans, yields shoot higher and markets wobble a closer look at the market

shows it's responding to the ever-more hawkish fed pretty well look how much the yield curve has steepened just this week this is a huge upward swing. that's from the lows on sunday to a 20 basis point steepness as of today it's a 30-basis point reversal pretty much. our first bellwether the three-month ten-year curve continued to move higher it's now at 2 full percentage points that's a level we haven't seen in several years all of this is bullish it signals demand is coming. demand is accelerating maybe for the fed accelerating too much but for the most part, let's turn to the data tracker we put the yield curves firmly in the good camp this week whether you want to look at the two-year or look at the three-month, bring it over here and we'll see it's pretty much an encouraging sign here that the fed's tightening talk is something that is seen as helping markets stabilize in the longer run also good, inflation expectations, those have been dropping as well we saw ten-year break evens peak

over a level of 3% last month. they're down to around 2 .8 %. the tightening is having an impact the macro data is almost too strong joblessclaims at a decade low. a little wonder that the fed's minutes show they plan to ramp up balance sheet reduction they would have hiked rates by half a point last month if not for the war in ukraine my next guest doesn't think the fed has much as runway to raise rates as is now widely assumed let's bring in the chief economist and strategist at manulife investment management it's great to have you today you think they're ultimately going to have to back down here? >> i think we're still going to see rate hikes, but not as many as the market or the fed currently hopes for or is priced for. when we look to market, you're right. jobless claims strong. levs of pmis look good we had energy come back. that's a little bit why the inflation rates have come down

we're not in the business of marking to marketing we're in the business of knowing what's going to happen in three or six months. when you look at the leading indicators for where the u.s. economy is going, it's a material growth slowdown from housing to fiscal head winds to real wages declining and consumer sentiment low that's not consistent with the bullish reflation trade. it's consistent with a consumer saying prices are too high i need to pull back, and a fed that's going to say we don't have to go as fast as we were thinking inflation is moderating. growth is a bigger component of that decision-making function. >> i hear what you're saying we heard similar talk from cathie wood this week again when she's saying the fed is risking tightening into a slowdown she cited consumer sentiment and what we heard from companies like rh, the expected deer islation of auto sales, but the question, all the consumer disappointment, let's call it, and frustration is coming from high inflation so doesn't that mean the fed

cannot back away here or they're going to make the problem worse? >> well, here's the challenge with inflation we're changing the nature of inflation as we go forward headline inflation is going to decline, but we're moving from covid inflation which was largely in discretionary items like used cars or fancy toasters or kitchen renovations. to conflict inflation. that's much more difficult for the consumer to move away from we've been complacent about the demand of instruction elements of high inflation. inflation is going to cool on the headline and become more of a growth problem than an inflation problem. and that's why that decision making function from the fed has the ability to tilt back toward the employment growth mandate. we're not saying no hikes. we're saying they can't go nine times this year. growth is going to be too challenging for that >> wouldn't you say the conflict inflation is a side show to the labor market, the most important thing is the trend of wage

growth and wage pressures, because that you can see show up in services prices in the future and everywhere across the country. it's not just goods inflation. it's inflation in a wide category of services in other areas. unless the labor market slows down, i don't know why we should expect inflation pressures to moderate substantially >> let's be careful about wages. wages are not growing fast enough to offset the inflation that we're seeing. and energy and food make up 12% to 15% of the consumer basket and rising it's going to be more challenging to move away from. real wages declining is something that should be concerning all of us that labor market is tight, but remember the labor market is the last to go it's a lagging or coincidence indicator. initial jobless claims are strong before we hit rough patches. we need to look forward at where consumer sentiment is. what are the leading indicators of retail seals like housing activity and saying wage growth, highly segmented into lower

income americans isn't broad enough or strong enough to give you the lift to offset, not a recession, just a growth slowdown that gives the fed cover to pivot >> and i totally -- i know -- all of this classically is right. but i wonder, because this is an inflation scare, you know, inflation is what is causing the weakness in consumer sentiment right? the housing that was a pandemic story. it's obvious that would be ending so if inflation needs to be resolved, then are we supposed to kind of sit back and hope that it's resolved on its own at some point in the future if you want to fix that consumer sentiment problem, don't you need to try to get inflation down in order to do that >> well, that would be desirable, except rate hikes are going to do very little for energy or food inflation it will help on the housing front. but only if we get a pivot from the fed to something that looks more like a soft landing the fed is doing exactly what it needs to do. it's orchestrating a slowdown to bring down demand. so all we're saying is the fed

is going to be successful. it's going to destroy demand hopefully not too much that's going to pile on with recessions in china, recessions in europe which have little to do with monetary policy. and combined that's going to create a slower growth path that says we need to get back to neutral, but slower and over a period of years. it comes back to the question, how much of this inflation can fed rate hikes solve even powell told us this year's inflation isn't what we're targeting. we're targeting longer-term inflation. he admitted that's not what we're trying to fix right now. we can't fix right now that's the fed message we should take away. >> thank you very much for joining us today we appreciate it my next guest has been warning about the rise in inflation and rates for the past year if not longer. and has been shifting his investments accordingly. despite concerns about higher prices he says consumer spend willing remain strong. joining me now is charlie, the vice chair and head of the investment group at ariel.

these are perfect bookends of the market i take the points francis is making imprurks you look at things differently >> that would be an understatement, kelly. so right now there are lots of different theories on where inflation comes from there are lots of different things that cause inflation. the point is all of them right now are pointing at higher inflation. so if you're a monitorist like me, you believe the money supply matters. m-2 money supply is up 40% if you're somebody who believes the fed controls things, the fed fund rate is at 50 basis points. that's negative real interest rates. we have negative real interest rates right now. that's inflationary. there are supply side people who think this is about our ability to produce goods, and clearly that's inflationary. we're not able to get the supply of goods we need there are people that think this is about wages we have the tightest wage and labor market we've had probably in 40 years. we have globalization which has been a negative force for

inflation producing people shipping goods, manufacturing to low cost markets that is slowing down, and if anything, it's going to be insourcing no matter how -- what theory of inflation you believe in, all factors point to higher and persistent inflation the other side is grat ping at staus. >> this comes down to investment strategies as well i know obviously we always talk about your stock picks but broadly speaking in terms of sectors q where would you be, for instance on the consumer which part of the consumer landscape would you be in right now? >> most importantly, this points to value versus growth value has been so out of favor for the last ten years with everybody thinking you have to buy faang stocks that we have so many value stock that are so cheap, and the inflationary and interest rates moving up are very good for value stocks relative to growth that's what we're seeing on days like today when value is crushing growth. secondly, you're right there are parts of the consumer market that are very cheap

names like you -- you know i love madison square garden there's pent up demand for entertainment, experience. that stock we think is worth more than 100 a share, trading for less than 8 0. we think there's huge pent up demand for cars, helping companies make electric vehicles that's where we see real value in value stocks? >> why is it that you do admit you've lost a little confidence in the strength of the economy and the labor market >> yeah. so i'm not going to deny that russia's invasion of ukraine is very -- is going to be very tough on the european economy, and higher energy prices and input costs are a negative for the u.s. economy the european economy is probably 20 % of the world's gdp. they're a big buyer of the u.s. goods. it's not good for the u.s. economy. i'll admit that, and i will

admit sentiment matters, and sentiment has been softening among the consumers. i'm going to say the chance of a recession before the end of next year is probably up to 30% not the 50% that a lot of people think, but i can't deny that these head winds on the economy that didn't exist before russia invaded ukraine. >> but not enough for you to make dramatic changes yet. charlie, appreciate your time. we'll check in soon. >> thanks, kelly let's turn to real estate specifically the market under a ton of pressure and facing a growing list of head winds low inventory, rising home prices the 30-year fixed mortgage rate topping 5% this year my next guest, don, the founder and chairman of ceo of real estate developer the people's corp he has a multibillion dollar portfolio of projects including in new york, miami, and los angeles. don, welcome, and before i get into all of this, miami, i mean, this is bit coin, miami,

everybody is talking about miami. don is talking about miami in many ways, is this a regional story of strength right now? >> yeah. i mean, miami is a -- has been an emerging city for quite some time it's benefitted significantly from the fallout of covid and the relocation outside of new york and other areas around the country including los angeles and san francisco where high net worth individuals and entrepreneurs and companies are fleeing to a tax friendly state, a business friendly state. so florida, especially miami and palm beach are benefitting significantly. >> your real estate exposure on the residential side is really more to the high-end markets whether it's palm beach, dlat fort worth, austin, areas of florida, would you say your residential consumer is in very good shape, somewhat good shape, and what's going on with the market dynamics as mortgage rates spike? >> i mean, it's interesting. i think the up -- the more

moderate home market is going to continue to endure because it's supply constrained and there's pent up demand i think the luxury kind of that moderate luxury up to, say, three to five million dollars is going to get hit hard. i think anything $10 million and down in new york is going to be hit harder as interest rates rise, because the buyers are more interest rate sensitive to those and low interest rates have given buyers a tremendous buying power. however, i think that the up -- the high end of the marketplace in business friendly environments is going to continue to do well. and for some reason, los angeles has encured exceptionally well on the ultrahigh end side. they're setting record price after record price for a single family homes and there doesn't seem to be an end in site for the ultra luxury homes i think that's because their industry is driven by different stimulus >> it's so interesting

one final question on the residential side i want to ask about offices after that where do you think we're going to be a year from now in the residential market in terms of prices and activity and inventory? >> i think miami will continue to experience significant appreciation because supply constraints. the market wasn't ready for this type of demand i think new york will hold its own overall on the residential side, because supply constrained. but i think we'll start seeing more development i think we'll see it in places like boston, charlotte, i think you'll see los angeles downtown l.a. pick back up for a number of different reasons but i think that there's a very positive side. i think the single family rental market to scale, i think, has some head winds ahead of it mainly because the residents in these communities are beginning to push back they don't want rental homes in traditionally homeowner communities. you'll see pushback on this, and

there will be more regulation coming >> sure, what would you say about the office space right now where we already know that we're never going to go back to maybe the occupancy rates we once had, but at the same time, we're back to work. parking lots are filling up. there is some normalization taking place are the dynamics of that market strong enough to withstand higher interest rates? >> well, i think the enteshl office sector is among the most vulnerable in the country. i think you look at new york city, for example, the vacancy rates are all-time highs credit loss is increasing significantly. and demand is going to continue to decrease in new york, especially for example, with the more older buildings that were once considered class a buildings but anywhere else they would be class a and b buildings. i think the west side of new york is going to be the exception to the rule and probably what gets done at penn station, but i think again, i hate to bring up miami, but miami office market is on fire, and our company is getting ready

to develop two major office buildings in south florida in miami beach and south beach, of all places, because there's been such a great demand it's amazing what's happened in miami is asking rents for commercial office space in the last two years, two and a half years, has actually increased by 70 to 80% for class a buildings. because it's so supply constrained and there's so much demand for people from the northeast, especially businesses from new york relocating down here so that's an exception to the rule, and i think you're seeing that in austin, beginning to see that in dallas >> interesting that was going to be the final thing. only new york where you're -- let's call it bearish on commercial real estate it sounds like there are other areas you have concerns about as well >> washington d.c. has record vacancies. i think the vacancy rate for commercial in washington d.c. is going to be almost 20% they'll have to find alternative

uses all the markets where there are business, anti-business environments or head winds for businesses in general where quality of life has diminished and public safety has become an issue, like philadelphia, like new york, like l.a., the office markets are going to continue to become a problem, and vacancy rates will continue to go up rents are going to continue to decline, because businesses don't want to be there anymore and you add to this quality of life issues to the absurd levels of corporate and individual income taxes, and it's harder for these cities to make a compelling argument to businesses anymore they're going to lose businesses it's just a question of how much and can they react to it and i think that's going to be a big issue for new york we're planning to build a very large office building on the west side hopefully in new york, and we've got a lot of confidence in the new mayor. we're hopeful the quality of life issues will turn around >> few people have their finger on the pulse of real estate like

you do i really appreciate it thanks for joining us and telling us more about it >> thank you for having me let's get to to our cnbc news update. >> here's what's happening at this hour. president biden andvice president harris welcoming judge ketanji brown jackson to the white house after her confirmation to join the supreme court. jackson says she will be an independent justice. i've also spent the better part of the past decade hearing thousands of cases and writing hundreds of opinions, and in every instance, i have done my level best to stay in my lane and to reach a result that is consistent with my understanding of the law and with the obligation to rule independently without fear or favor. >> the federal trade commission is seeking some of its largest ever civil penalties against walmart and kohl's

regulators say the companies made deceptive environmental claims about textiles made from bamboo in france, the president's lead has shrunk to the smallest gap yet in the presidential election starting this weekend a poll today shows macron was just a two percentage lead over the far right candidate. on the news, when the push to build more housing runs into increasingly scarce water supplies, that's tonight at 7:00 eastern. we'll be watching. >> still ahead, three buys and a bail the earnings addition. the big banks get set to record next week, and my next guest says there's one sinker in the group and one standout you're looking at the chart of the standout it's down 20 % in the past three months the name and why it's a buy, next atever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice? i can make this work. that seems to be universal.

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welcome back, everybody. never mind the traditional three hours writing, reading and arrhythmia tick. investors are paying attention to rates, risk and recession the nasdaq and the s&p on pace for a down week, but earnings season is looming around the corner for better or worse, and we're looking at three names that are reporting in today's

addition of three buys and a bail joining me is gina sanchez gina, it's great to have you all right, let's just run through this y united health is your first buy. all-time high ahead of earnings next thursday. what do you like about it? >> this is a stock and a company that has been driving both top line and bottom line growth. and that is extremely important. they just had a setback because their acquisition of charge health care was blocked by the doj. however, they just announced a new acquisition, lhc group it would add to their home health offering. and everything this company has been doing is about growing like i said c that top and bottom line growth. >> and you like to lean in when they're at all-time highs? do you feel like it's already priced for perfection? >> well, you know, it's interesting you say that this company is trading at only

a modest premium to the s&p 500 with regard to its pe. if you look at it from a valuation standpoint, it's not extremely overvalid. and we still we up side. and if we go to the negative scenario where we see a recession, which we don't necessarily buy into, this is a very, very good recession proof stock. this is a stock that is showing that it can perform if we have a really negative scenario, it's actually a great stock to own. there's a lot of reasons to own this stock, and we don't think it's too expensive right now >> united health is one name you like the next is albertsons consumer staples the shares doubled over the past year they report before the bell on tuesday but again, more exposed on the labor side they just reached a deal, i think, to avoid a worker's strike why do you like them >> so albertson's is one of the

stories, and it's a stock that is very good in the face of inflation. and if there's one thing that we do think might linger, it's inflation story. and as soon as we saw the invasion of ukraine, albertson's really popped up basically saying nope, you know, this is not the reopening is not going to hurt us we're still in demand. and this is a company that has also been driving tremendous growth, and it's trading at a discount, not only to the s&p but also to the sort of foods segment of the s&p, and so the food retailers, generally trade at a discount to the s&p 500 here's one that you're picking up even at a better value with really strong growth >> all right albertsons up just under 3% today. let's move along to the pair trade in financials. that's really what everyone is to focussed on next week we'll start with jpmorgan. no spliez you think it's a buy everyone loves this one, even though it is down 20% the past

three months >> yeah. you know, the banks have all gotten hit really hard i think the outlook around these recession fears, the concern around inflation, the fed raising rates and even the potential for those rate hikes to cause an inversion in the yield curve. none of that looks great for banks, obviously however, jpmorgan is a company that has shown that it can execute, and it got a double whammy in terms of getting hit not only with all the fears i just talked about, but also because they announced op exspending everyone is nervous and a bank announces operations expenditures they're concerned they're not going to be able to execute. this bank has a track record on that execution we think it's a really good deal >> it's traded poorly since the earnings announcement, and maybe this one will turn things around we'll see. the flip side is citi group which you're mourning. this is your bail today. not a big fan of the name. by the way, it's kind of moved in lock step with jpmorgan

for all the quality differences here, they're not trading that differently. >> yeah. you know, i'll tell you, citi bank is a bit of a stinker they have continued to have to slog through their reorganization of the company, and there's still a lot of wood left to chop and now the one thing you could say about citi group is expectations are so low that any execution could actually cause a small rally, but we think it's still a bit too uncertain in order for them to prove they've turned themselves around from that perspective, there's more risk in that stock. so if i see citi group trading in lock step with j.p. morguenen, i'll take jpmorgan every day of the week. >> gina, thank you very much we appreciate it gina sanchez, three buys and a bail this week sn still aheaa check on the biggest movers

after the break.

welcome back to "the exchange". dow and s&p higher today look at the s&p. it's only up by one point. it could turn to negative. obvious the nasdaq not happy about the ten-year over 2.7% as it's down almost 1% right now. the dow is up 228. what's driving the nasdaq down nvidia, data dog nvidia is sliding 13%. data dog nearly that much. lucid, marvell, starbucks as well having rough weeks they mark the return of howard schultz as ceo starbucks having the worst week since 2020 a cyber rodeo in austin last night as elon musk celebrated the opening of a new factory more on his lofty goals next on

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welcome back we're keeping an eye on shares of tesla, down 2.5% today. they're down also about 5% for the week it comes as elon musk opened

their newest giga factory in texas last night, promising everything from cyber-trucks as well as bots, but did warn of headwinds. >> kelly, this event was to mark the official beginning of deliveries of model ys when you look at this factory, keep in mind it's tesla's fourth final assembly plant they have two now in the united states, one in europe, one in china, it comes at a cost of $1.1 billion look at the capacity a half million vehicles annually they're not going to get there right away but that's huge capacity, and for tesla, this is all about getting into scale they will be manufacturing not only these vehicles there, but they'll also be building the 4680 battery cells the texas plant for texas is also where they plan to build the cybertruck that will happen next year

last night elon musk talked about the ponce of having a huge plant like this in terms of delivering said worldwide. this is why scale matters. in order to make a big difference to sustainable, we have to make a lot of cars, stationary packs to transition the world to sustainable technology as quickly as possible >> the expectation is for them to deliver 1.47 million vehicles this year. will they give us some kind of guidance when they report earnings in just under a couple weeks, actually on april 20th? we'll see. he's said i may not be on all conference calls unless there's something important to discuss lots of questions out there. let's hope he's on the

conference call. >> any surprises last night? >> he's made promises as he did in the past, rob otaxis, a humanoid robot next year, many of these are proceed jections we have heard in the past i think most people takes those projections when we'll have something next year, with a big grain of salt. >> think surge do. but a watershed moment to see that giga factory finally opening. >> thank you while the sector has historically underperformed, some say it could be different this time around we have those details, next.

welcome back, everybody. the industrials etf, xli, down about 0.3%, down 2% this week. seema mody has what's driving

the loss >> since the war started in february, earnings estimates have come down by nearly one percentage point that's significant, but not as big of a drop as other sectors, like consumer discretioniaries, while industrials historically underperform in a rising rate environment, invest offers argue this time should be different. the commentary from hef canny does that weights is that the show are theage in key goods is constraining supply, plus higher oil commodity prices, that's expected for good news for a name like caterpillar. what may cut into margins is wages, this week are among the names that sold off on the slowdowns.

fastenal is first to report to give us a better sense of whether a slowdown is, in fact, in the cards seema, thank you very much that does it for us here on "the exchange. everybody. "power lunch" begins right now welcome back recession warning, the dow transportation index is down 6% this week. demand is deteriorating, prices are falling. that could hurt a number of stocks bank of america has a list of those you want to avoid. after ben mckenzie is taking on a new role you may remember him from "the o.c." and "gotham" now he says the market is full of reckless, and why he