netflix is going to be positive for disney also. and with bob iger, the hate fest will start to lift >> i think if they miss, then the optimism will drive it up. >> good stuff. good week, everybody "the exchange" is now. thank you very much, scott i'm dominic in for kelly today here is what is ahead this friday a blockbuster job report, the market taking it in stride is good news truly now good news again? or could the fed apply a bigger break and put a stop to the 2023 rally? we'll debate that question plus, apple's rough report the biggest quarterly revenue decline since 2016 and tim cook sees more pain ahead. why is one of our guests so bullish on that stock? he joinstous make the case

and media stocks have been on fire this year and who is leading the way it may surprise you. we have a look at what is behind the gains and whether they can keep going from here but we begin with today's big market reversals bob? >> reporter: dom, this is quite a remarkable turn around and a rally, frankly you see disappointing tech earnings with a disappointing jobs report would quash it around the soft landing. but the dow is flat today. we're up for the week. the dow had a rough week the s&p 500 just refuses to keep going down at this point it's up about 9% for the year. the nasdaq is up 16% for the year tech stocks are doing well i just want to show you the tech earnings, the big three on the tech earnings, all disappointing. apple is now positive. what is remarkable is apple is up 16% just going into the earnings, already a little pricey you think with the disappointment, particularly around china, it would be down today, but it's not. apple is up almost 20% this

year, that is a remarkable run even speculative tech stocks is up double digits and you think it would be down today. flat to down coin base was slightly up throughout the day, up 30% this yeek roku is up about 15% this week everything else, double digit gains for the week, even flat to slightly down today. i wanted to show you how powerful this rally is the s&p 500 is off to its best start from january to parts of february since the 1920s it's the fifth best start since the 1920s, up 9% you have to go back all those years to see up double digits here the good news on earnings, revenues are still growing because they have pricing power. earnings down 2.7% and they're continuing to come down this is the big story. take a look at the rest of the year q1, q2, they keep lowering the

earnings estimates you can see all of the hope here, this is the soft landing, is in third and the fourth quarter. that's the market believing at this point that we'll make it through any kind of slowdown in the fourth quarter back to you. >> the consensus seems to be that second half story stick around, please let's talk more about what is driving to the strong markets today, and the strong jobs report and what it means for the economy and the markets and for the fed. we have cnbc chief economics reporter steve leisman joining us, along with michelle ingarra. thank you all for being here this panel needs to help investors figure out what's going on we thought with the numbers that we saw that you would see a market that would give back some of the big gains from yesterday. steve, can you take us through the hits, runs, and errors, and what this means on balance it seems like it should be

negative, maybe positive i don't know >> i was hope thing panel was going to help me figure out what the heck is going on, dom. it is something out there. it's a job number that came in 2.7 times the estimate, which you don't see all that often but there was something else inside the report that i thought was really interesting back to december when there was bunch of things that made people confident that the economy was slowing. you had the workweek contracting. people talked about temporary -- getting down to zero job growth, because that could be a leading i would kay for. and then the service sector went down and went negative all those things reversed today. hours worked, back up. ims services was positive again. so if it was just one thing in this report, if somebody could give me a statistical thing that caused this thing to be as

strong as it, is i would feel a little more comfortable. i have to look at this number, i think the economy is maybe accelerating again, despite calls for gdp number that are below the level of 1%. >> so michelle, this is -- so you're the economist you looked at these numbers, you saw the report are you as confused as the rest of us right now about what's going on here? and by the way, does this data significantly take the odds oh of a recession lower >> it certainly has pushed back the timing of a recession. we still have a recession in our forecast, but whereas we thought it would be predominantly half of 2023's story, it looks like it's going to be delayed, and we pushed our expectations, and the gdp growth to the second half of the year stepping back, i don't think the economy is reaccelerating, but

it's not decelerating in a straight line or as sharply as it appeared to be in the fourth quarter. we seem to be losing momentum throughout the fourth quarter with those december numbers that were kind of through and through very disappointing i think that this suggests that it's not going to necessarily be a straight line, and it's not going to be perhaps as weak as soon as we thought it's going to continue to be sort of a gradual deceleration i think the fed or for markets, there's still a confidence that the fed has done a lot people have been revising up their forecast, so if you have inflation coming down, you think most of the fed action is done, and you're still seeing economies moving up. that's when you get to a situation where the markets like this news. >> so peter, we've been looking at each other, and you seem like you have a little bit of certainty in your eyes about whether you think this is a

clearer read or not. has this clarified anything for you about the u.s. economy or have things just gotten murkier? >> the jobs number itself is as clear as mud but everything else that i look at seems to be very clear. what is so interesting about the number is, it is such an outlier to such a great extent, i don't know whether to rely on it the household survey within the overall number, that can be explained. there was a population adjustment if you take out that adjustment, there was only 84,000 jobs added. but i look at the services number today, the unemployment component was 50, implying no real net hiring. you have the s&p global services pmi that said there's been a notable halt to hiring we see the continuing claims data being elevated. i listen to a lot of company conference calls and general cautiousness and a limit to

hiring so the number came out of left field, and i can't have that yet alter my opinion on what is clearly a slowing economy, and one that i think is in a recession. >> already in a recession? >> housing is in a recession, consumer spending in november, december on a real basis was negative, manufacturing is in a recession. we're essentially there. >> so how then, bob, where is the disconnect between the markets and that narrative that peter is explaining right now? because he seems to have data to back it up >> right i agree the jobs report is confusing. when i'm confused, i look at the market and say what is the market telling us? i see startling strong jobs report, rates are up, and the stock market is holding in there really well, considering the news, particularly disappointing tech earnings on top of that so this seems to be implying that the market may be comfortable with the idea that

it's kind of wrong on the rates. they're expecting the fed to cut rates towards the end of the year they may be wrong, but if the economy is so strong, it may be able to withstand for longer, and we could, indeed, get the soft landing that seems to be the way the market is read thing data. >> michelle, i'm watching you nod possibly in agreement here so take us through your thinking >> yeah, i think that's really it i think that the -- you know, i don't think anyone looked at these numbers that were, again, unequivocally strong and starting to say wow, the fed is going to have to take rates a whole lot higher than we thought. so we may not getthe rate cuts in the second half of the year that we have priced in, but as you said, if the economy is holding up better, that might be okay we might get into this where you achieve this soft landing, and

when you step back, as long as inflation keeps coming down, and that, of course is the wild card do you have these kinds of strong employment numbers, continued strong labor market and see inflation make it all the way to 2%. as long as it's moving in the right direction, it doesn't necessarily have to be bad news for the equity market. >> steve, i know that i can see you chomping at the bit, peter as well has a response do you feel as though bob's reading is correct >> to me, when you look at the two biggest headaches for the market in 2022 was 40-year highs and inflation and the most aggressive monetary response in 40 years now that inflation is rolling over, the fed is almost done raising interest rates, we have relieved those headaches to me, that's the easy explanation for why we're rallying but i think this is just one battle won and not the bear market war won now we have to deal with the

economic consequences of all these rate hikes and deal with an earnings recession, as bob pointed out that maybe q4 is the beginning of >> steve, has the expectation changed? has this been a significant enough event in your mind, and with the futures market the way that they trade, to indicate that the trajectory for the fed is somehow different because of this >> what's happened is the market has taken about a 20 basis point step towards the fed when i look at the fed market gap, in other words, what is the pricing for the end of 2023, they were 75 basis points apart, and now they're 55 basis points apart. the fed hasn't moved, the market moved more towards the fed with an idea that maybe there is less of a cut built in than previously thought but i want to go back to what peter said i can just tell you, let's say this number is half wrong. let's say it's 250,000

there is just no way the nber is going to call january a recession. even given what happened in december and i would just caution people, there are a lot of marquee names out there that have laid off people at the same time, when i look at the leisure and hospitality business adding 120,000 workers, i'm not confused by that when i see the hospital care system adding 79,000 workers, i'm not confused by that these are places where there are definite needs for jobs. these are some industries running below their pandemic levels so when we try to overlay models of other recessions on top of what is happening now, we get confused i know, peter, when you get confused, you listen to the music play >> all right, peter, i'm going to give you one comment and then we're going to move on >> i like the music reference.

yes, the labor market is unique in that it's still hanging in there. but with economic growth faltering at the same time the labor market is strong, that means productivity is not good, and profit margins are going to continue to decline. >> okay. michelle, thank you very much. steve, bob, as well. peter, please stick around here. we'll have another conversation for sure stocks are lower right now the. again, moving towards session lows right now but on pace for weekly gains a different story for commodities. natural gas is down 2% today more than 20% this week alone. u.s. benchmark oil prices rallying today, but down 2% this week gold prices on pace to end the week lower, as well. despite all of this, our next guest says commodities are a good place for investors to look right now. if you look at the moves, natural gas is the market. you have to go all the way back to december of 2020 to see some of the prices that we have seen

with regard to natural gas, despite the fact that in the northeast, we're going to have a possibly, possibly arctic-like cold spell coming up so if you look at those commodities complexes over the last week, the last month or so, can we really feel good about some of those moves? let's talk more about this with elizabeth burton, client inv invein investment strategist with goldman sachs. we've been trying to make sense of all this. it sure seems like if you look at agriculture and energy commodities, especially natural gas, it doesn't look like inflation. it's not deflation, but not inflation either what does that tell you how the markets are setting up for the outlook for inflation? >> well, look, my take on commodities and why they're helpful in a portfolio are less of a reflection on that and more

of a reflection to protect our portfolios next year last year, 95% of assets were formulated with the equity market so dollar, cash is the only thing you could run to this year we think there is going to be a bull market and place where is you can find -- look for protection in the commodities market and part of that is coming from the china reopening and the abatement in the energy crisis in europe. >> so china is a very big part of the story, because they are the world's second biggest economy, the biggest importer of oil out there, the second biggest user in the united states but is the entire commodity story about energy right now it's gotten so much attention. but what about in metals people used to talk about copper can we talk about those types of commodities in the same breath as we talk about oil and net gas? >> i don't think you can put an entire asset class into one bucket and just say you should

buy commodities. i don't think that we advise any of our clients to just buy a blanket basket there and hope for the same outcome i do think there will be winners and losers from the china reopening. and from the importers and exporters story around that. so pick your spots, and there will be opportunities to earn a return that you haven't seen in a long time. there are a lot of portfolios that do not have strategic allocations. that's hard to add to in the short term, especially if you are confused >> in your estimation, how many of those client portfolios out there, in your expert opinion, are underinvested in things like commodities? >> i would say the shift happened about a decade ago. as you probably know, the public pension world for people is very hard to make tactical decisions

quickly. so very few. i could name a handful that had strategic allocations to commodities. >> peter, the commodities story, is it enough when you see charts for things like natural gas and wheat and corn, charts for things like even egg prices, which have been sky high, coming down, sis it enough to call a peak in inflation? >> no. i think the china reopening is a huge deal. this is 17% of the world's population that has been locked up for three years oil consumption in china in 2022, on a per day barrel basis fell to the lowest level since 1990 in 2023, that demand for daily crude oil will go to a record high at the same time, we still have all these supply issues with getting this stuff out of the ground not necessarily the ability to get it out of the ground, but the willingness to get it out of

the ground that has obviously changed. so i think that the -- we should treat the chin saa reopening no different than how the whole world reopened they want to make up for lost time, and consumer demand will lead to much higher commodity prices when i see those charts with these prices lower, we have had the pullback, and it's time to go higher again. >> elizabeth, in a former life, you ran one of these pension systems for the state of hawaii. >> yes >> so you were a byside chief investment officer, and now you are kind of showing the other people on the buy side what they should be looking at >> sure. >> somewhat are they missing right now? what is the institutional community missing about the economic narrative and the market narrative we just had a big discussion about that disconnect now between the jobs numbers and what the market reaction is or could be >> sure. missing is probably a tough thing to say what i would say is that they are a little conflicted.

the portfolio is in a hard landing scenario, and the soft handing scenario needs to look a little different it's just a very tough pox to have been in after a decade, two decades, you know, of the past environment we had, especially on the bond side as they play such a large role in public pension portfolios >> do you still feel as though the outlook for those assets could be positive in 2023? >> i think maybe the bonds might be early, especially what we have seen today in the jobs number there might be some more shoes to drop here especially globally. central pbanks across the globe are in a different position. so that's the first thing. 60/40 is very difficult to add other new asset classes into that mix

somewhat i would say is they're trying to pick their spots, but they are super overweight cash right now. to your point, there are opportunities in short data fixed income bonds where you can earn that income >> elizabeth, peter, thank you both appreciate it. speaking of asset classes, we have a news alert on what is happening with real estate >> hi, dom yeah, what the fed chairman gave us on wednesday, the jobs report takes us away today. mortgage rates just jumped back into 6% after falling into the high 5s yesterday. the average rate flew back over 6% to 6.19%, according to mortgage news daily. this after the jobs report sent bond yields soaring. now, 20 basis points may not seem like a whole lot, but on a $500,000 home with 20% down, the monthly payment just jumped back

up by $50 in one day also, these numbers tend to have emotional consequences the 7% range caused a steep drop in home buyer demand just dropping into the high 6s drought some buyers back 5% could have been a nice boost going into the spring housing market it was mighty brief. >> diana, thank you very much for the update on mortgage rates. coming up, apple is on pace for its highest close and best week since september. does today's move suggest the stock is almost recession proof? that's coming up next. plus, it's been full stream ahead for media stocks to start the year -- see what i did there? but a lot of these are off their recent highs can the rally roll on or will it run out of steam and a quick check on the markets. the dow down 105 points.

the s&p 500 is right about 4150, down about 1%. "the exchange" is back after this break appreciate it so much. thank you. doors are new beginnings. -surprise! -surprise! your dedicated fidelity advisor can help you open those doors. for you, mama. through personalized money management that can evolve with new chapters. and they can proactively view your entire portfolio. with an eye on taxes and the impact of risk. so you can enjoy moments together. because doors were meant to be opened.

welcome back to "the exchange." apple shares are up nearly 3% right now after falling as much as 5%. right after the opening bell, initially though on those weak q1 results also, next quarter could look the same but our next guest is not concerned. he's got a buy rating on the stock and says this report does nothing to derail his long-term investment thesis. joining us now is martin yang, a senior analyst at oppenheimier, along with our steve kovak thank you very much for joining us here. maybe steve, i will start with you. to kind of take us through the, i guess, thesis for why we saw the kind of reversal that we did. it was a disappointing result, but it still seems as though traders and investors have this urge to want to buy apple when

it goes on sale like it did. what are the fundamental stories for apple and its earnings report >> a couple things here. on the guidance that the cfo of apple gave last night on the analyst call, he talked about, mike, to your point, most of the segments are going to be down, including mac, iphone and so forth. but iphone is not going to be down as much as it was in the december quarter so i think people are really gloming onto that data point saying okay, things are going to be bad, but not horrible and keep in mind, dom, apple, as demand collapses for consumer electronics, especially pcs, apple gained market share last quarter. on top of that, there is another positive story they are trying to tell around services. they talked about the install base of 2 billion active devices. that means that's every one of those people has an opportunity to sell more subscriptions, to

sell more app store sales and advertising within the iphone. so there is optimism around that, too. despite all these head winds and services, they set a record revenue number, one of the only segments they were able to beat on that's where this optimism is coming from, despite the first miss in almost seven years >> martin, this is a fundamental story you have to pore through what exactly, in this kind of generally disappointing report, has not changed your mind? why is it that you have seen some of theslowing growth that we have seen, yet you still maintain that bullish, kind of longer outlook on the stock? >> something that you can quantify is better than expected service revenues we have gone through almost a year where revenue payout to developers has stalled that's largely due to the much

lower transactions through mobile gains and yet apple still did better than expected service results, driven by i cloud, apple pay and apple tv so that's largely an underlying story that is largely unnoticed by most investors, is that apple is paying less attention or less emphasis on the app economy, and instead pivoted to service revenue growth towards its own first party content in the services and that's something that will have very positive, long-term effects, driving the margins and a more sustainable service revenue, despite some pressures put on the app store and the other are, you know,

they are making record, and that gave us more confidence on the longer term durability on the hardware growth and continuing to expand apple to take share very consist tently. >> so that's a good point. martin, iphone revenues, we talk about iphone as a segment that becomes the bulk of the apple results, but to your point, services revenue has jumped up the leader board to take over a decent second place, better than in terms of mac sales, better than ipad sale put together. that services component is growing. but at 6.4% year over year in the first quarter for the company, does that represent a slowdown in your mind that should be worrisome from a valuation standpoint >> it's worse in the near term, because it's still very much exposed to how consumers decide

to spend particularly with games. gaming accounts for well over 16% of the app store revenues. that's a kind of discretionary spending you have seen all the headlines that are worrisome, and so that will be -- continue to be a head wind in 2023 but, again, if we stretch the timeline to maybe three to five years, that will be a much lesser impact, comparing to the potential growth apple could have with its own services >> all right steve, last word from you. what is the big thing you are watching in this current quarter for anal >> let's talk about india tim cook really said, to quote him directly, i'm very bullish on india is what he said on the call, meaning they tried this

before six, seven, eight years ago to break into that consumer market in india, but there's not that middle class that they have had success with in china. but things have changed, and tim cook sees different things on the ground there, and they're about to open up new retail stores, not to mention all the manufacturing increasing over in china. so i'm paying attention to that india story. >> thank you very much have a nice weekend, guys. now, remember, as the world's largest company, apple's performance affects an entire ecosystem. take the iphone, for example the company is responsible for the face i.d. technology, 5g, chips, you name it they're watching those iphone demand numbers as they figure out their next move from their own business stand point another apple supplier is hitting an all-time high today after beating earnings estimates

of its own, up 40% this year and apple accounts for around 80% of its total sales very leveraged to what happens over at apple. still ahead, office workers are doing something they haven't done since the start of the pandemic -- they're showing up to the office. yeah, they're at their desks we'll loob atk at what is drivig the return to work and take a look at the dow heat map, with home depot and honeywell the worst performers on the day "the exchange" is back after th is

impact to employee's health and safety so we're seeing companies make that shift away from that traditional model to more circular supply chain model, that moves away from the make, take, and waste model of the past >> how does a company go from traditional to circular? >> company executives need to develop the strategies that are necessary to maintain these

products and parts and pieces and supplies throughout that product life cycle at the same time, they need to make sure they're working with sustainably focused suppliers and vendors who are helping them execute on the ground. >> how are you helping your clients make that shift? >> we are working with a number of companies to move to more of a product as a service model we're seeing luxury fashion, retailers, rent and resale we're also seeing in just equipment usage, we're renting and reselling is equally happening. >> thank you for sharing your expertise. >> great to be with you.

> clorox is leading the s&p 500, with earnings coming in 51% above estimates. gross profit marmgens were up year over year, as well. so clorox shares, so fresh, so

clean, up 7.5% now let's send it over to tyler. >> nice and clean, those are my middle names here's what is happening public trust in the police have sunk following the beating of tyre nichols by police officers in tennessee only 39% of people say they are confident that police are trained properly to avoid using excessive force. the poll found 41% say police treat whites and blacks equally. the triple crown winning horse trainer bob bafford is in court today, trying to overturn a suspension to run horses this year at the kentucky derby churchill downs imposed a ban after one of his horses failed a drug test after winning the derby in 2021. the horse was disqualified and the agricultural department, proposing new tradition standards for school meals, including the first-ever

limits on added sugars, and a significant cut in the amount of sodium if approved, the new rules would be phased in over the next six years. >> tyler, thank you very much for that coming up, is 2023 going to be the golden age for municipal bonds? one investor sees optimism returning to that market we'll get the bonds to buy after this quick break iser exchange" is back aft th ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.

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welcome back to "the exchange." muni bond outflows hitting a record high last year, with more than $100 billion pulled from the market while this week saw $362 million in outflows, three of the first five weeks of the year have seen actual inflows our next guest sees optimism returning in munis and says the golden age of public finance will push forward. tom, it's good to see you again. when you say golden age of anything, i think of some real positivity what's got you so bullish about that big muni bond market? >> the golden age in my mind started back in march of 2021, with that almost $2 trillion of federal aid. $650 billion went to directly to

public finance sectors that's what started the golden age. i think that's going to continue into 2023. i think that overall, rating upgrades are going to outpace downgrades this year although i do think that we peaked >> if this is the case, where are the opportunities? i'm going to peg you down and say, is it in general obligation type bonds, revenue type bonds how exactly do investors go about constructing that kind of a portfolio? >> so because we're at or near the peak, one of the things that i've been talking to investors about for the last several months is that this is the perfect time to start to trade out of state and local government credits that were either strictly in ball ance before covid and are likely to

be in balance the next year or two. one of the things i'm positive about, the overall credit situation, one of the things i'm concerned about is i'm concerned there are going to be situation where is state and local governments are not going to clamp down with their spending that federal aid is not -- it's there, it's helping them get through some uncertainties, but i really am concerned that there are going to be some of these that are going to be structurally balanced coming out of the next year or two. one of the other things i have a strong conviction about and have for several months, i've been talking about mass transit since i started really talking about mass transit last summer, mass transit has performed very well from an investment perspective. there's all kinds of risk because of the work from home stories, because we see the transit usage numbers, they're

all down and likely to stay down but from an investment perspective, mass transit is too important to fail. >> and tom, before we let you go, that's your pick, mass transit. i want to get your macro take, big picture, what is going to be the taxing environment that you were assuming the u.s. will be under in the coming five to ten years, and does that factor into some of the municipal bond type thesis >> one of the things that i'm really concerned about in 2024 is that there could be -- one of the things that could evolve is a threat to the municipal bonds like we saw in october and november of 2017, where -- [ inaudible -- and the community did lose the ability to use bonds for

venture funding. that's one of the things from a tax perspective i'm really looking forward to over the next two, three years >> tom, thank you very much. have a nice weekend, sir >> you, too. coming up, if you are banking on the end of new york city and their office buildings, you may have another thing coming what is driving workers to come back to their desks and maybe even te ssakma transit that's coming up next.

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part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. welcome back layoffs have shifted more power to employers, and they want workers back in the office robert frank joins us now with a look at how that is shifting the real estate land scape robert >> reporter: dom, you are leading by example you are in that office five days a week, inspiring all the rest of us, and the closes of starbucks, disney and other companies are saying be more like dom, get back to the office more, and the workers are listening. for the first time since the pandemic, a majority of office employees in the ten biggest cities are now back in the office

office use now at 50.4%, so just a slim majority there. it does vary by city in austin, texas, 68% of workers are back in san jose, california, still only 41% you look at new york, we're at 48%. and amongployers in new york, it could be higher a survey by the partnership for new york city found that 52% of office workers are now back. for most workers, that means three days a week. only 10% are fully remote now. that's down from 16% in the fall employers say the new normal for manhattan office space will be 56%. so we may not get much better than 56% a look at the industries with the highest office rates, it's real estate, finance, and law. among the lowest is, yep, tech layoff fears may be driving many workers back to the office

starbucks told employees they need to be back at least three days a week. disney's bob iger saying we want you back at least four days a week starting in march dom? >> it's interesting, 51.4% back in the office caught my attention. can you tell us how that is shaping that commercial real estate market overall? had it already anticipated this or are we due for a stabilization period how does it look >> it was very bullish going into this. if you look at the commercial side, we still have about 100 million square feet of office space. and the projections were that this would -- we would get back to 60%, 70%. it's now clear that the lasting effects of the pandemic means we're not going to get much above 55%, up to 57% that has big implications as you were talking about for

commuters, for the subway, for all the sort of commuter economy and tax system that new york city is built on being a business district, being a five days a week commuter system. so the whole city is still in denial, as are many cities about just how lasting that is it denial about how lasting that is it says something that three years into this, we are celebrating today just making 50% nationwide >> it took a long time action robert, for sure thank you very much. we'll see you soon have a nice weekend, sir still ahead, media stocks hosting monster games to start the year warner brothers up about 67% after a dismal 2022. so, what's behind it that's coming up next. ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪

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welcome back to "the exchange." after a tough 2022, media stocks are staging a comeback with the big names all up double digits to start the year. warner brothers up 67% paramount global up 48%. charter communications up a cool 20%. and cnbc's parent company, comcast, is up 15% so, let's dive into what's driving the moves with jeff kill berg, ceo of kkm financial,

along with julia boorstin. julia, let's start with you. how much of this is true bullishness, and how much of this is just the fact that these companies got smoked pretty much in 2022? >> yeah, dom, i don't think you could look at the performance year-to-date without looking at what happened in 2022. and these are pretty much across the board stocks that really suffered over the course of 2022 and now they are rebounding. there are a couple of catalysts we're watching and really what those catalysts come down to is these media giants thinking strategically about exploiting their assets and revenue and profitability. the fact warner brothers discovery they're going to launched a combined version of their two sets of apps, the warner brothers and the discovery assets that's expected to be a catalyst, the idea that streamlining makes sense they are bringing content in fast channels, free ad supported

channels to launch on roku and tubi showtime, paramount, they are combining all of those assets into one place, both when it comes to the linear tv content as well as the streaming platform so, couple things to watch there. >> those are a lot of catalysts. and those are fundamental stories, alex, to julia's point. so, based upon your reporting, where are those compelling story lines, to julia's point? which companies stand to benefit the most is it tied more to streaming or is it broadband? what exactly is it >> that's a great question, dom. look, there are two camps about what's going on here the first camp -- and this is if you ask executives at warner brothers discovery this is what they'll tell you, that's what's going on is that the market has realized that the general narrative of getting subscribers, streaming subscribers, at all costs, spend as much money as we can, get as

many streaming subscribers as we can. that game is over. and the market is starting to appreciate that warner brothers discovery and other stocks were oversold at the end of last year and now that they are revising their companies to revolve around profit and revenue, sort of more baseline media metrics, these stocks are going to come back up. and there's going to be some multiple valuation increase here the other story is that maybe things are not so bad on the streaming front. i mean, netflix just announced that they added 7.7 million subscribers. that blew out the number of subscribers they were supposed to add netflix is saying in the street, we're not even going to forecast subscribers anymore because we want you to look at other things because subscriber a doesn't equal subscriber b depending where they are in the world. nevertheless that stock went up when they blew out subscriber numbers. it's also possible that the market isn't convinced of the legacy media narrative and they're still judging companies on streaming subscribers

>> jeff, let's take everything julia and alex said and put rub tore the road. you're an investor you're a trader. where are the best opportunities? >> when you're looking at media stocks, you are focused on subscriptions. julia really talked about sentiment. this is a congruent line, dom. think of the nasdaq stocks decimating 2022. they are the laggard all of a sudden becoming the love theme i'm looking at warner brothers discovery, which is fascinating to me that they're finally coming to the table with content. they're going to try to take on disney and marvel series they're slotted for five new films in 2023. i get excited about that stock it will be interesting to see if it has the ability to move back up it was down 67% last year, so it's kind of come back but nonetheless i think there's more room to run the othe fascinating is comcast, the parent company we have seen a lot of of stock l you look at the way they're doing things it seems they're poised to move

higher i'm bullish. there's 128 stocks on this morningstar list of undervalued companies. it was in the top ten. so, it's highlighting the fact, dom, that there is cash flow and fundamentals, the reason to own here so, it may move back up to it's highs. so, both of those stocks i think you can jump in despite the fact they had tremendous 2023 gains >> jeff, do you know any of them >> i don't at the moment i'm still trying to feel out, maybe selling some puts. i want to sell some premium options and get put to this name because you're getting paid handsomely for taking advantage of it. >> that does it for us on "the exchange." there is the tyler camp, getting ready for "power lunch." gog to see them nay couple minutes after this quick break thanks very much have a nice weekend.

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