>> i'm in sync with buddy dr. j. kinder morgan. another gas pipeline play. i don't have to tell you how important cha commodity is worldwide. >> thank you see you in "overtime." "the exchange" begins right now. thank you, scott hi, everybody. i'm kelly evans. we'll hear from fed powell jay powell in a few minutes, live. speaking at imf, quizzed by our own sara eisen markets expecting he'll solidify the case for yield in may. popping up, can the ten year be far behind what's it mean for mortgage rates and hear what the fed has to say in a couple moments. plus, another one bites the dust a major streaming change, and word is cnn plus is shutting

down after a month of launch shares of warner brothers sinking. and "the exchange" gets you ready for the markets. dom chu has the markets. >> green solidly so earlier this morning. we talked about it knthis mornig in the red not a lot. the fact we are in red territory although marginally may be signaling something about a little bit of a sentiment now given a nice short-term bull run we've seen dow jones industrial down 2 points flat on the session just about but solidly higher at one point today. s&p off one-half of 1% 20 points there. nasdaq, 13,344 down 109 points big reversal there and nasdaq trade down three quarters of 1%. highlight now an interesting theme that's starting to be in

the early stages of developing so far in this 2022 year 23457 the difference in large cap stocks, midcap and small cap stocks etf, small cap trade down 10% on year-to-date basis s&p 500 down 7%. meanwhile, midcaps, sweet spot there, down 6% 5% to 6% now reason why you're looking at that, in a time of this kind of stress, are the midcaps going to be that sweet spot space again small cap investors move up the market cap spectrum to find a little relative safety and where large cap investors go down the market cap spectrum to see if they can find a little out performance or alpha see if mid cap plays out more like that in comes months. stock of the day, kelly mentioned at the top, a very big week for streaming in competition headlines and economic headlines, terms of all kinds of content headlines

warner brothers discovery on a one-year basis down 17%. if you look at trade today down 8% streaming not had a good week. with announcement now we are seeing cnn plus unwind after just a little over a month in existence, brings you to this notion that from a competitive standpoint, who's going to win or lose, who's going to outperform in streaming? very much a space a lot of people are watching now, because of our changing habits as consumers of media i don't just mean this as professionals in the business, kelly. we know everybody out there especially during the pandemic streaming a lot more what's it going to look like in coming years big questions to be answered back to you. >> dom, thank you. we begin there today with latest chapter in the streaming stumble. not 48 hours after netflix stock chanced on slowdown in subscriber, cnn plus shutting down not even a month after launching. shares down moor re than 8% breaking down the story with the

latest senior media and tech correspondent julia boorstin and cnbc tech reporter alex sherman and sarah fischer, media reporter at axios and which can come out on top as the streaming space consolidates first the latest, julia, on the cnn plus stumble >> kelly, warner brothers announcing shutting down cnn plus it launched just on march 29th just a couple weeks ago. operations halt april 30th and cnn plus's chief andrew morris is leaving the company warner brothers discovery saying in a press release "as we become warner brothers discovery, cnn will be strongest as part of our wbg with nonfiction content. the ceo streaming saying the brand key to the company's direct to consumer service kelly, what we're seeing a new

type of bundle that this company is putting together to make sure that it can really compete with the other major streamers. >> julia, stay there alex sherman, turning to you apparently a wigbig reezareason deal itself. washer brothers sunk a ton of money and discovery not onboard. deal finalized why did they pull the plug >> look at it from two different perspectives both leading to the same conclusion. one, david saszzaslav hadn't sea business plan, more or less, for cnn plus in terms of its future in order to the profitable basically said, originally, look, i'm not sure this thing is a viable product have to look into it obviously made the decision it wasn't i reported last week fewer than 10,000 people were watching cnn plus every day in terms of daily

active users that's a paltry amount of people when you think about it. netflix has 222 million subscribers. the other reason they shut it down, cnn plus' existence a anti-theticcal to the larger strategy, to push big bundled product. everything we've got, basically, from the warnermedia catalog and discovery catalog and use that big package all of our strongest content to the compete against netflix. >> what's the bigger bundle, alex >> we don't know exactly yet waiting to hear -- >> it doesn't exist yet? >> merger just happened. willing to give management a few days at least to tell us what's in this, but, look i can more or less tell you what it's going to be it's going to be everything on hbo max. everything on discovery plus it will probably be some of the things on cnn plus

then over time i imagine it will probably be live sports that you see currently on the turne tnt s also very well may be live programming that you see on cnn today. >> maybe that's means salvage some of cnn plus i don't know exact number. reportedly sunk a ton of money into this. hired a ton of people. talent to the producers to everything else to support it. did the timing just become an issue? because we've really hit the wall here. seems like, for streaming more broadly. >> yes a great point. let me lay out numbers for you 300 million dollars invested so far in cnn plus. the plan according to my sources put $1 billion into it over course of four years hoping to hit profit after four years. the idea was for cnn executives, if we can create a profitable subscription streaming service we have another revenue stream outside of our website that helps us stay diverse when

linear tv eventually dies. what happens to some of that cnn programming? how do we salvage it interested it putting it on a free app today you have to sign in to authenticate live programming. the idea offer that individual joe, offer streaming from programming from cnn plus for free and make it ad supported helping them make more digital ad revenue of course, video rates are higher than traditional rates. the other idea, as alex sherman mentioned, do great reporting on this, is bundle in some of that programming with the large ef hbo max bundled offering pt the idea there, have one service, likely around hbo max, because it's working for consumers at branding that one service the first foreseeable future includes bundles. not sunset discovery plus tomorrow you'll be able to buy it

bundling through max probably around 2023, 2024, that will be a more bundled offering between all of these services under the branding hbo max. >> okay. that brand name. dan gallagher, turn to you the broader story, spoke about it yesterday potentially one of consolidation. right? as you think through the different chess pieces, there's rumors and speculation about apple's involvement. you know, netflix less than $100 billion market cap company could that make it right for takeover by an apple or amazon, or how should we read intentions of big tech and what's a tough regulatory landscape >> well, i've covered this for a long time. it's not the first time i've seen apple's name floated as somebody to buy netflix. i see that unlikely in the case of apple for numerous reasons but think netflix is, the quick

meltdown is, has come as the company broadcast a message that there might be a ceiling on streaming, on the overall streaming market that's why you're seeing other streamers market values hit. it's driving companies like -- like the new warner brothers discovery to think about, okay how do we make sure we're one mpt last few standing? make our offering big. so it's not something that consumers cut off and strategy how do we make different offering that appeal to more niche audiences doesn't work with that. >> julia, share price performance. amp netflix yesterday saw all streaming sfrgss struggle. not like benefiting from their stumbles this seems to be a broader point of saturation. what are the likely next steps here how do you anticipate the chess pieces moving? >> i think there's going to be increasing focus on ad-supported streamers. hobo max has an ad-supported notion and worth noting this morning at&t announced because

those warnermedia numbers were still part of at&t in the past quarter, did issue 3 million new subscribers. netflix numbers don't indicate everyone is con stracting when it comes to streaming but as we hear for more and more of these players, whether disney plus or nbc you've's peacock, the question is there still growth where is that growth coming from and how much of the growth is going to be coming from lower cost ad supported options as consumers really pull back on how many different services they're willing to pay for are we going to see emergence of a couple key larger bundles whether disney plus, espn plus or hulu or a new amalgamation of warner brothers discovery assets add people pick a couple options and try to get as much value as possible out of them. >> my point. consumer is overwhelmed by selection. existing cable subscription in many cases, toggling between different streaming services who is going to come in and rebundle all of this

>> i think you'll see some consolidation at some point and honestly i think netflix will remain as, in the years going forward. i think what's going to happen, though i see various studies that show that somewhere between -- consumers are willing to have right now three to four streaming subscriptions at a time clearly getting into a place where we're going to see each consumer's going to have a few services they stick with and maybe services they jump in and out of for a particular program. so, again, i think trying to reposition to not be one of are those ones gets high churn rate but one of the big ones can remain and be like one of the few last standing. >> most industries mature with roughly four major players five names on the screen dmou. alex, your spidey sense telling you, what? >> very well may be headed toward something that ironically looks more like a bundled tv

product that we're used to ful would be better for the consumer because you'll can be able to watch it in and out of the house and on any device, but not surprise me at all if the next iteration of the streaming wars is netflix bundles with starz, bundles with whatever for a sort of price and that's the next reinvigoration of growth and you see peacock and paramount plus and these mini bundles that don't cost you $100 a month, like cable costs you, but maybes $20, $30. disney already has their own bundle with disney plus, hulu and espn plus. that already exists. may see other companies pair up and partner as we kind of slowly move towards a more expensive bundled product. >> sara fischer, last word. >> not surprising to anybody on the phone with ton ap lift as a tv research firm every quarter past three years, jill, how much are people

willing to spend on subscription as month she sizz arounds 40ds. $10 for four services. throughout the pandemic, jill, not going up she said, no inflation, other consumer discretionary factors here to me, that signals even though there's demand for streaming and more people are leaving television to go to streaming, they're not willing to pay for more all that this consolidation net, alex, julia and dan subscribing, bound to happen. look at the consumer's appetite for spending it wasn't going up throughout the pandemic even, the boom. >> true. maybe inflation is part of what hastened and end to that steve liesman reported about that last month as pell. not the end of the story thank you all for joining us. speaking of inflation, fed chair jerome poumle set to spea at any moment. wall street priced in another hike that's better for the economd ew

my next guest, says investors are looking to hedge volatility look and fix income and maybe see near-term gains. welcome in david katz with matrix asset advisers. good to see you. what do you mean you think fixed incomes are looking attractive here? >> we have not liked bonds for a long time's in light of the rate moves you can now buy a 6 month, 12 month, 18-month trevry and get $1.75 to 2.25 percent.turitn you finally you can buy those very short-term bonds, get a positive return. and when buying those really don't have too much interest rate risk because own them to maturity you get the yield and money back. >> interesting point that sometimes look at the market and think you're exactly right that is it, is it responding well to the fed's hawkishness? yield curve is steep we still see commodities in

metals those parts doing relatively well do they need and want, and giving fed the space here, to be more aggressive? >> inflation doesn't stop like a light switch it will take a little time fed-setting expectations being hawkish, markets have come to adapt -- david, actually -- we believe powell is speaking now if you don't mind, stay there. listen in to the fed chair at the imf debate on the economy. >> -- bright spot in the global economy, but now policies are changing, as you know, to address inflation, and there are concerns globally about the tightening of monetary policy. what's the u.s. outlook? and how are you feeling right now about your claim that we're not heading towards recession? >> i guess i'd start by saying that we are unified with our allies around the world in opposition to the invasion of ukraine for no reason, and the human suffering going on there, and while -- while these

economic matters are important, there are fundamental things at stakes there that we want to keep in mind so in terms of the u.s. economy, we are a bit more remote from the immediate affects of the war compared to europe, for example. but we will be feeling them over time and they will come in the form of upward pressure on inflation. further upward pressure and a bit of down with regard pressure on output. but the u.s. economy is very strong, performing very well by most forecasts have another strong growth year this year labor market is extraordinarily tight. extremely tight. historically so. to the point where, where really there's an imbalance between supply and demand for workers, and, of course, the big issue that we're very focused on is inflation and getting inflation back down to our 2% goal >> but if the we start to slow materially in our economy, will you stop tightening, even if inflation is still above your

target >> well, so first of all, u.s., about a soft landing you asked a be that. our goal, use our tools to get demand and supply back in sync so inflation moves down and do so without a slowdown that amounts to recession our goal you won't hear anyone at the fed say it will be straightforward or easy. it will be challenging and do our very best to accomplish that it's absolutely essential to restore price stability. without price stability, economies don't work we need that to have market extended pesriod of time we must do that. >> three basis hikes coming in the next three meetings as of this morning is that reasonable >> i try not to comment on specific pricing for things. i'll say this. at our last meeting in the minutes from the meeting, many

on the committee thought it would be appropriate there would be one or more 50 you basis point hikes. >> are you one of those people >> i don't disclose my own path and try to leave it to the committee. so i think, i thin processing what we're seeing but wouldn't want to bless any market pricing i want to say we are committed to using our tools to get 2% inflation back, and i think if you look at, for example, look at the last tightening cycle, which was a two-year string of 25 basis point hike 2004 to 2006 inflation a little over 3% inflation is much higher now and our policy rate is still more accommodative than then. it is appropriate in my view to move more quickly and also i think there's something in the idea of front-end loading whatever accommodation one thinks is appropriate. so that does -- points in the direction of 50 basis points on the table, certainly we make these decisions at the

meeting and will make them meeting by meeting 50 basis points will be on the table for the main meeting. >> minister, are you more worried what chair powell is doing -- >> we'll dig back in as we get more on the global economy. turn to quick reactions from the headlines, watching markets which had gone negative prior to powell's comments on expectations, i believe we heard confirmed that half point rate height is on the table turn to steve liesman for more thoughts and dave katz still standing by as well. steve? >> i think he's confirmed what i believe the market knew and was priced in. looking here i don't see any change at all in the two year and looking here right now at the fed probabilities. still at 625, which by the way, something that happened earlier today. i think more so on mary daly's

comments 75 basis point down the road the new question for the market. just how aggressive the fed will be interesting, kelly i don't know if you have that chart loaded for this conversation of the fed funds outlook, but trading at 265 now is trading above where the fed, several fed officials have said it where they think the upper end of where they think the funds rate ought to be by end of this year. they've set 2.25, 2.50 market now taking the fed a step further and saying, okay you guys hawkish let's price in a little more hawkishness out there and take a look here. because we now see 340 by september's 2023 where the rate is penned right now, kelly market has been aggressively postured and powell really just confirming where it had been, and not really going as far as some other fed officials have gone in recent days. >> david katz, what do you think it means for the market?

>> trying to talk expectations to significant rate hike is. the more they do and the more the bond market raets, possibly 6 to 12 moss, the fed will reopen comfortable the way powell is navigating this and a good likelihood we'll continue to have growth next year. for sure the economy solid over the next 9 to 12 months and hopeful we don't get into recession. a dell wit tigicate tightrope bo inflation late summer, early fallpressure off t. and 3%, 4% by third quarter of next year >> come on, kelly. .375 don't get there earlier than we have to. yeah half a point for all intents and purposes look, powell was talking about this concept which david said much more simply

which is, this idea of talking it up. powell talks about front loading. what they're doing bringing forward as much as they can in terms of restraint to the economy through talking, and i think the idea that david expressed, an interesting one. one people have to figure out in terms of if they're trading this short term is does the fed need to get all of the way there if it provides enough restraint right now by front-end 4rloadin? look where we are. existing in economic environment the two year is really at 270. not a future rate. where's it is right now. all of that restraint, i don't even want to call it 150 basis points's restraint, brought into the economy now. if it does indeed, if david's right and some other forecasters as well, that towards summer we start to get relief, the fed will probably go to 2.25, 2.50

but maybe not next year go into the 3% range that's what's to watch the debate is not right now. the debate now is about next year. >> david katz, final word to you on tougher question what do fixed income investors do. what's your advice >> absolutely want to stay short but can buy 9 to 18-month bonds and lock in an adequate return and it's higher than you're getting in money market. wouldn't buy intermediate term or long-term bonds but 6 to 18 months we think you'll get a decent return with very little to know risk. >> amazing to look five and seven year above 3% earlier. ten year, 293 watches stock market filling off and thanks to you both we'll continue to bring you any further comments and headlines from the fed chair as he continues to speak at that i am f event. 3i6piv oting to the other bg

story, gains revenues above pre-pandemic levels for the first time what's the timeline for a fuller return of profitability? how is the somerseting up? phil lebeau is here with ceo of alaska airlines. phil >> thank you, kelly. ben, you just came out of the analyst conference call. let's not talk about the first quarter. yes, a loss, but smaller than expected i think people are more focused on what you and your competitors are saying about this environment right now and this incredibly strong demand ever seen something like this in the airline industry where it has turned around quickly? >> it's been extraordinary, phil, and thanks for having me extraordinary demand and saw it starting in march. march sales highest in history 13% higher than any month in our history and continuing to double dump it by gains and unit revenue, double digit gains in read and predicting a double

ditch profit in second quarter and a profitable year. it's been extraordinary, yeah. >> ben, every airline executive i've talked with in the last month says it's different because it's going to last beyond the summer. last several quarters maybe a couple of years. if you are in that camp as well, how are you convinced? how do you convince investors this is not going to last just a few quarters and back to business as usual? >> seeing a lot of great signs a great question nobody has a true crystal ball but it's a great question. we're seeing now, again, at least the next six months, incredibly strong. one of the big factors, we're seeing business demand coming back at a rapid rate not seen before international travel opening up. encouraging signs. to balance that, we're a company as a low-cost business model trying to look around corners. inflation is high. there is risk of recession fuel prices high we try to do no matter what the environment, insulate the

business much as we can from external risk and right now everything we see demand incredibly strong better than ever seen in our careers. >> ben, kelly. the point about fuel prices. are you hedged and what's your philosophy about that? >> hi, kelly yes, we're hedged. 50% hedged for 2022 at $78 a barrel kelly, that's going to give us a $200 million tail wind on our results this year. it's a concerted hedging program and served us well over the years. >> too bad you can't hedge labor costs? >> right a great point. combine laker costs and fuel costs, labor costs almost 60% of our cost structure. inflation is real and fortunately demand is strong we can recover a lot of that court increase. >> ben, a couple stats from your quarter. a surge in first-class revenues as well as people paying up for premium cabin. what is driving that not enough just to say people

are saying, i'm flying again i want to pay up and go in business class what's driving that? people saying, yes, i will pay more now, not just buy a base fare >> great question. we see it, people are coming out of the pandemic and want to treat themselves a little bit. our fares are affordable for our premium product and first class. premium product, great three more inches of space, a drink, a snack first class pitch in first class and people are enjoying it coming out of the pandemic saying this is pretty good for the premium i'm paying for that fare. >> ben, does the mask mandate and this debate going on about whether or not the cdc might reinstitute it matter? or is it, it is what it is there, put it on not there, take it off >> i think i'm exactly with you. that's where people are at

our view the mask mandate lifted is a good thing. pleased with that. i think we see all benefits. talked about the air on board refreshed every three minutes and hepa filters filter our particulates including covid the extra benefit with the mask lifted is really for flight attendants they can get back to what they do great provide great, caring service and i think they're excited about that >> ben, thank you very much for joining us today from alaska's headquarters in seattle, washington kelly, back to you tell you something, spent the last couple of day in airports 40% to 50% still have a mask on. each day you notice add few more take off their mask. >> similar at grocery store. last couple of months. phil and ben, thank you to you both appreciate it. alaska air shares up about 1%. still ahead, disney worst stokkan the dow past 12 months down 40% now tax status under scrutiny

from florida lawmakers. we'll tell you what's at risk and why florida may hold the bag. and on pace for a seventh monthly drop can earnings past the bellur tn things around? we'll find out, after this. with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.

welcome back to "the exchange," everybody i'm tyler mathisen cnbc news update at this hour. in new york a handyman arrested in the murder of a mother whose body found in a duffel bag police say david banola killed orsolya gaal after getting into

an argument. he staped her more than 50 times while one of gaal's children was upstairs her body found on a nearby road in a duffel bag police say belonged to her son. on the news tonight, timeline of a murder and what may have led to that brutal stabbing tonight at 7:00 eastern time. and the supreme court ruled congress can exclude puerto ricans from a benefits program available to other citizens. the supplemental security income program offers payments to older disabled and blind americans and the high court voted 8-1 excluding puerto ricans from the plan did not qualify as discrimination under the constitution and mattel paying tribute to britain's queen elizabeth on her 96th birthday. the toy company has unveiled a barbie doll to honor her -- there she is her royal highness, kelly. between elizabeth. barbie as queen. >> that might be a cool barbie

to have, as girl who never really had them. >> it's a nice barbie. yes. look at that. >> tyler, see yo tyler mathens. and we have action and story and trade on each of these stocks along with broader markets. we're back in a moment.

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welcome back, everybody. fed chair powell addressing inflation moments ago at the imf debate on the economy. here what he had to say. >> one great benefit of the imf meetings is a chance to talk and collaborate, kristine and me and all of our colleagues talk about these things and find a couple things inflation is a global problem. quite everywhere and high in most places. but there are differences. certainly differences. in the united states, we have very strong growth and we have higher inflation higher core inflation than europe does, for example we also came into this, europe struggled more than we have with low inflation. well below target at a much lower policy rate. a different level of underlying inflation. differences.

of course, we all serve domestic mandates in the case of the united states, we have had an expectation that inflation would peak around this time and would come down over the course of the rest of the year to an extent and come down further in to2023 dispiappointing and wanting to e actual progress. may be the actual peak was in march but we don't know and so won't count on it and no longer counting on help from supply side we're going to -- if we get it, great. enormously helpful in having a soft landing but we're going to raise rates and getting expeditiously to levels more neutral and that are actually tight, tightening policy if that turns out to be appropriate once we get there. >> isn't it going to be hard to control inflation through tightening when a lot of it is coming from the fact that russia and ukraine are major exporters of so many commodities we need

and don't know how long the war will go on don't know how long china will see rolling shutdowns and more supply crunch? harder than normal to get a handle on inflation through your policies >> of course we can't affect supply side issues really can't affect much food and energy prices either in the near term. comes down to what we can do tools work on demand but we have a job to do on demand i'll point to the labor market there are substantially more job openings than there are people who are unemployed if you take total employed people plus job openings, demand for labor. look at size of the labor force, more than 5 million more demand than supply. we've got demand/supply imbalance in the labor market and elsewhere in the economy it's clear that comes from a number of things including fiscal policy, including what we did in, at height of the crisis there is a demand job to do. you're right can't fix supply side problems.

>> do you need the stock market to be lower? >> well, you know, we -- never point to one particular price orsatti or class of assets, but generally the way our policy works is, we control one overnight rate plus balance sheet also has effects, but -- that affects broader financial conditions that includes asset prices, includes credit availability rick spreads all kinds of financial conditions the financial conditions in the end, those affect the real economy. we monitor financial conditions. so really two steps there. one of the many -- there are many different accommodations possible of financial conditions, and we have seen some tightening from our rate increase that's to be expected. >> some people have an idea, a regard, that you guys need to shock the markets to really, to start to see more impact when it comes to putting pressure on demand and on inflation?

is that something you ascribe to >> we need to communicate with as much clarity as possible at to -- >> communicate at much as possible curious ow lagarde responds to that question. sara asked if they need to shock the markets. la guard said better to communicate as much as possible and heard from the fed chair speaking about inflation steve liesman standing by with thoughts and reactions here. steve, we digest and that comments earlier being open to a h half-point hike next month. >> kelly, so viewers know. before we broke into the conversation they were talking about distinctions between european monetary policy and u.s. monetary appeals and both the head of theal ecb, christine lagarde, and powell agreed u.s. needs to meet poormore quiy lagarde saying on the table but

wouldn't bite when the sara asked if ready to raise rates in july important thing heard from chair powell, maybe you heard it, too, talking about potential for tight policy labor market tight, before talking about tightening policy, but relatively new, maybe not first time he said it, the idea of the fed going to tight policy, what does that mean? fed speak, going above the neutral rate there's the chair openly talking about the idea of not just going to the neutral rate which is this 2.25, 2.50 range but perhaps going above that and that is where we're talking about here, kelly, where the market's priced. priced at 2.66 by end of the year, that suggests the market is starting to internalize this idea of the fed actively moving to restrain the economy. >> absolutely. seeing the nasdaq down about 100 points all markets lower, but not by a huge amount. steve, thanks. steve liesman. we'll continue to monitor that event. up next, earnings exchange

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welcome back, everybody. netflix's huge miss, teslas beat earnings driving the market and preview on three more names on deck this week time for today's "earnings exchange." start with snap down 10% this week as tech broadly under pressure, we've noticed of late. nasdaq rates, a lot of other aspects of that story, netflix street bullish on a name with zero sell ratings. julia boorstin that the story. and cio of an investment group what are we looking for? >> over 75% of annist wills have a buy rating on the stock. keeping, the company will expect to grow both revenue and subscriber base. analysts looking for about 330

million -- sorry not subscribers. users, daily active users addition of 11 million daily active users company the revenue expected to grow 39% key thing here, snap could be a bellwether for other social media and ad supported companies. an indicator how well companies sump as snap navigate limits to add targeting with changes to apple's operating system and other privacy changes. then also broader question of how is the ad market now seeing impact of inflation or consumer uncertainty really change the way advertisers are spending right now, kelly. >> nancy, how are you -- i don't think of snap as a stock you'd necessarily be a big owner of. what's your take on it these days >> yeah. kelly, we reduced exposure to the social media plat forms about a year ago, and in hindsight, looks like a decent trade. we were concerned about the things we would still be

concerned about, snap. you have enormous demand pull. facebook, snap and pin both generated more than three times mid-teens average growth that they saw, prior to the pandemic demand pull. and then apple idfa privacy action that's caused some decline in the growth of ad revenue, and there are some analysts that believe google, amazon and apple will actually generate more ad revenue than all of the social media platforms combined in the coming years. so i think this is a company that maybe needs a model pivot to their, you know, to their strategic plan think meta think netflix. engagement is also waning and they are reliant on growth in europe so with the russia/ukraine war, i think that's going to weigh, a customer harassed by inflation i think if it sells off, it may be a good three to five-year

buy. not three to five months if it rallies on the quarter, i would take some off the table. >> off the table menti not a lot of people bring up meta as a case of, hey, wish the company would do what meta's done over the past six months or so not that you're a big fan of the stock today, but why do you think that's the right thing to do kind of to make this moon shot, really, at what could be the future >> i actually -- i'm not really applauding it. just saying it was a diversion that got -- to look a little different. we reduced our exposure. we took facebook out of our 12 best ideas portfolio a year ago and reduced it where we own it in other places and did the same with twitter took it out of our portfolios entirely i think there are better places to be in the market. that as these companies adjust it's like turning the queen mary, making a model adjustment. netflix did it a few times i don't know if meta will be

able to do it in the way they think they are >> absolutely fair point julia, quick final word on this speaking of model adjustments. obviously without sayings twitter in the middle of one potentially now? >> absolutely trying to figure what's next. twitter earnings are a week from today and, of course, twitter subject to different pressures and different competitive issues than snap is have to see how many of these, these facts that snap reports today are applicable to the rest of the social media landscape and waiting for next moves from twitter's board in terms how they respond to this latest offer from elon musk. >> you have a full plate today, julia. over-full, i would say appreciate it. let you go julia boorstin turning our attention to amex, shares up 15% and analysts expect revenue to be up 28% from a year ago more on that story we turn to kate rooney. what are you watching, kate? >> hey, kelly. julia talked about snap being a bellwether for twitter and other

social media stocks. same with amex and consumer spend side and credit card visa, mastercard next week analysts watching what does it mean for mastercard and visa that's big watch cross-border a big sectio that's a big section for amex there. within that category the inter europe category. i talked to analyst saying that's a key portion to watch and broke out. what different demographics are doing with the rebrown we'll see if the older generation is bouncing back with the in-person spending interest rates net interest income for amex about 20% of revenue higher rates help companies like amex so the commentary of what

it means for the payment companies. >> this is a favorite reopening name is that right? >> yes this older generation member is doing way too much spending. i love that. yeah listen the company raised the dividend 20% last quarter and guidance for revenue growth in the same range. that's a big endorsement from management jpmorgan call is card purchase up 29% delinquencies are down and i think kcustomers are eager to gt out and spend. i don't think many vacations will be postponed and a name to pay attention to how consumers spend through it but more on gasoline you can pay with a platinum card. it's outperformed the market 20

years about 1.1% annually. this is a stock to own for a lifetime and if it sells off buy some and if it rallies hang on. >> quite an endorsement. thank you, kate. finally, we turn to energy the trade that just keeps working. she lumberger is the stock to watch why dom chu, i have to expect expectations are high for this space. >> they are. we have seen sell-offs the energy sector is hot no doubt about it. is it due for a pause with oil prices seemingly stabling? so traders and investors going into the earnings report tomorrow morping to see if the price action mimics others that have already reported

weaker versus estimates for baker hughes but facing selling pressure given what's been a nice run maybe for the earnings outlook it is about sell the news a little bit looking roughly 32 cents a share in earnings. and like halliburton before it it's a picture on how the oil companies are reacting to the higher prices. are they drilling more is there a pickup in activity? what management says about the outlook. is it expectation that the current bull run turns and if so what's that like going forward that is key. >> i don't'd rather own eog? >> i would there are headwinds for s

schlumberger they produce, a most productive company in the energy space and been exposed more to the upstream because we think oil has a way to go and with them cutting the dividend in 2020 and not increasing it you can own an eog without regulatory hurdles because they do the work on the private land and paid special dividends and about to pay another $2.50 special dividend you get paid handsomely to hold the stock with the yield and with the capital appreciation. >> goes to show -- stock picking works in sectors that are working so strongly. nancy, thank you so much we appreciate it dom chu, thank you see you soon. it is desantis versus disney seeking to end the local status.

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welcome back disney is set to lose its special tax status in florida after the governor implored lawmakers to consider ending the decades old deal the mover came after disney put out a statement against the state's so-called "don't say gay" bill. robert frank is here with more robert >> kelly, moments ago the florida house clearing that bill to eliminate disney's special government district and did governor expected to sign that in days saying it's time to take away the special privileges but it could leave florida taxpayers with a higher tax bill the main benefit that disney gets is regulatory control it doesn't have to apply to local governments for building,

zoning or planning permits and pays for its own government services so local taxpayers have to start paying for the services and could mean higher tax bills but the debt the district between $1 billion and $1.7 billion in bond debt. that debt would be transferred to local governments totalling over $1,000 per taxpayer. >> it's totally unfair to saddle the residents of the two counties with this kind of liability and debt eventually the entire state's going to have to pick up this tab so it affects every taxpayer in the state of florida. >> the bondholders could challenge this in court since the terms prevent the state of florida from quoteal altering it

so many financial and investment repercussions just now starting to understand. >> yeah. if he signs it disney would have to agree to dissolve that. we'll follow the process thank you. that does it for "the exchange" for now. "power lunch" begins right now thank you. welcome to "power lunch. everyone excited for the big travel rebound this is the summer we get back to going places. cruise lines, hotels higher. we'll talk to the ceo of lowe's hotels carl icahn over the pregnant pigs how esg is changin