>> let's throw up the ten-year yield, if we could, just to take a look we did bump right at 4%. that's a level that's going to be closely watched we haven't closed at that level since november so we've got to watch that there it is, 399 i'll see you at "closing bell. "the exchange" is now. ♪ ♪ we know we are all over the ten-year yield today welcome to "the exchange," everybody. i'm kelly evans. bond yields are soaring, and market expectations hit a fresh high of 5.5% we'll look at what is driving that what one former fed governor says those calling for a pivot are wrong. and where you should be putting your money elsewhere, shares of tesla have been on a tear this year, and we have investor day today. will that help or hurt the momentum we'll get the latest

and three ways to better play the ai craze three different areas of tech and the best position in each. we have all of that coming up. but first, dom chu with the saw toothed market >> the reason we're talking about that soft spot, especially for the broader s&p 500, is that we're currently at 3960 for the broader based index. this is right in between the levels, 39.40, 39.80 39.80 is the 50-day average for the s&p 500. below that is the 200 day. so you're moving in between some of these moving averages so it's kind of that soft spot you don't know exactly where it's going to go, but right in between a couple of technical levels right now, down ten points, and just to give you an idea, the range has been generally negative up one at the highs, down 31 at the lows the dow industrials just about flat on the session.

11,414 for the nasdaq composite. one reason why, we've seen some weakness, at least relatively speaking, in that tesla trade. this is relative this is a spoke that's doubled off of its january lows. but tesla shares down 1.75%. also, rivian automotive, a mixed report for the production was un underwhelming to soon. that ev trade has been down on the day so far one other place to keep an eye on is mega cap technology. march may be a little better than what we saw earlier this year but nvidia, alphabet, apple, microsoft, all of these tech names are starting off with some more tepid footing gains here for alphabet, but watch apple.

interestingly enough, i know that you know, i watch along the top ticker searches, apple has always been a top ten ticker search recently, there's a lot more interest, at least there was yesterday in meta platforms. >> i would have thought nvidia >> nvidia is still up there, higher on the list this time around than meta and apple >> dom, thank you. let's get to rates the ten-year yield back above 4% for the first time since last fall let's get to rick with more. >> i'm going to borrow that chart you just showed. let's go back to that 10-year chart. prices paid today was the culprit at 10:00 eastern when it was released you do see that touch of 4% where it stopped that is a big psychological area and will prove to be important relative to a close should it occur today or not

and if we open the chart up, yes, it's been since november 9th that we closed at or above 4%, as you see on that chart, and all that excitement affected the entire curb, because it's flirting with minus 90 basis points it's never closed at 90 basis points in the inversion or more in four decades. so potentially another expansion. and on prices paid, let's go to the protagonist here or antagonist depending on your position five-month high at 51.3, but i gave you a wider chart, precovid as important as that is, it is still only getting back to precovid levels. the market might be trigger happy here if you consider boone deals, they're watching their own data today. during february's cpi at 9.3, it was 1/10th hotter than january, but way below the october peak

but look at the boons marching up they closed at 11 1/2 year high. higher in yield, but not comping. 3.85 close, that's a five-month high they have a variety of brexit issues, but that inflation in europe also affecting all sovereigns, just like it is intense here >> rick, what do you think -- so a lot of people i see are using the stagflation term again today. >> you know, they can use the stagflation term, but there's very little doubt in my mind that has a lot more horsepower today based on what we saw out of the harmonized cpi and all the inflation numbers coming out of europe. >> all right, rick, thank you very much. if the market is looking for a pivot, they're definitely not getting it from the fed comments the former fed governor was on this morning, explaining why the fed is not easing any time soon.

>> when you get behind the curve, you have to raise rates a lot and you have a recession to get inflation under control. the fed is doing the right thing now. >> in other words, he's not dancing around the point that we will lead to recession that view on higher rates, reinforced by the fed president, he said it doesn't matter because -- >> joining me now, bill stone is chief investment officer at the glenview company nancy tangler, and jeff cox is with us, as well where to begin bill, i'll start with you and go left to right here if miche is right about a receso being the result of all this,

does it make you rethink your position >> honestly, we went into the year thinking we would get a recession at some point. i would say we thought we would get it earlier in the year, because the way some of the numbers are starting to play out at the end of last year. we really started to accelerate again. gdp is up about 2.3% in the first quarter for gdp. so it's not going to -- almost surely not going to be here in the first quarter. so i think he's right. they have to keep pressing on higher rates you better expect they break something. they have to break something they talked about the fact that services is a big problem. it hasn't weakened the way they expected, and that's a big part, the sticky part of the inflation. look for them to keep hiking, because eventually it will probably -- or it will get payrolls and jobs and then that

will kind of start that, and will likely be the only way we get inflation to move in the direction we need it to go >> it wouldn't be a surprise to you, the question is, stocks, nancy, maybe i'll turn to you, do you think the recession is already priced in? >> i don't know, kelly i kind of think so it's been the longest telegraphed recession that i remember so we know nonetheless that growth is slowing. and that's been part of the way we've been moving our portfolios, adding to risks. i think bill's right, it comes at some point this year, just a question of how deep it will be, and whether or not it's sustained. we sort of extent kind of shallow, kind of not lasting very long. therefore, if that's the case, we think that equities have priced in what they expect out of earnings.

we're trading at 14.8 times, so there are places where you can make money we've been adding to technology and consumer discretionary names, and we're continuing to do that. >> why is it for those sectors, nancy, or where in particular? >> in technology, microsoft, broadcom, with a focus on cloud, cyber, of course, and then if you look at the solution to that, the solution to productivity problems, and productivity improved in the last labor period, you have to have digital solutions so we'll seeing old economy companies embracing digital solutions, and we are invested in those think of mcdonald's, chipotle, using digitation to their advantage. so i think there's places to go,

and stock ticker's market, two, three years ago we talked about intel and i said it's enough already. we did get out if you just look at that stock, it tells you everything you need to know about this market. it matters what you own. >> fair enough i remember that day very well. let me turn to you we have ten year above 4%, fed funds at 5.5%. we have a stock market that is trying to rally, and tons of recession talk how does that square with you? >> for a long time, kelly, the market heard what it wanted to hear from the fed. kashkari talked about this today, that he's tired of talking about what the stock market does. he said he doesn't care. if it's going to go up, it's going to go down i'm watching bond yields and financial conditions i think the market is starting to react to this more and more exists that i talk to are talking about 6%. so i think that's where we're

heading. rick made a very good point about the prices paid index, going up in the manufacturing index. >> but let's think about what you just said there. you're saying it would have been worse if not for the fact that the bad thing rose that's not a great thing for equity investors >> no. there's more money floating out there. the feds are trying to pound the table more and more. officials like kashkari, austin goulsby, chris waller talked about head fakes with inflation data we saw that in november and december soft inflation data, starts to turn around now in january that's what they were worried about. so yeah, that four-point move in the ten-year is telling you that

the market is starting to brace now for higher policy rates. >> are you impressed, bill, that the stocks have been as resilient as they have been with all this >> i am, but you can kind of time it, honestly right on the day in terms of the day after we got the last strong payroll report that the s&p topped out, and we're down roughly 5% off of that it could have been worse, but i think it's like everything else, it depends on what level you come from. we were already in that higher rate environment so i think it's not as shocking to stocks when you have it happen a second time also, you had the situation where the economy is frankly held up much better than i think most would have expected here, like i said earlier, into the first quarter. so maybe earnings won't be quite as bad as some people thought. you have to prepare yourself, as it gets tougher here, maybe towards the end of the year if we see that recession i think

we'll get. >> it reminds me, nancy, that this yaerear was going to be "torture." it doesn't mean the recession is not going to happen, but people are so tired of hearing about it now, it almost becomes the boy that cried wolf, and then how does it work the wolf shows up. >> they might be tired of talking about the market i'm tired of listening to fed speak. they didn't have rate increases until 2024 now we have -- decreases in 2024 but who knows? i don't think they know. so they've been really good -- really bad on policy and really good on rhetoric so that is why the market didn't believe them, because they said so many things over the last year it's only been a year. we were still easing this time last year. so i think if we get to 6%, we're closer to it now than we were a year ago.

and separately, we know that inflation goes up and goes down. but it doesn't move linearly we'll get a report like last month, and a lot of the things that are lagging, like housing, are about to really work through the numbers. and we will see inflation coming down significantly the prices paid today, not good, anomalous. but it's one data point. i think the market has been just whip sawing on one data point, just like the jobs report. the january jobs report will get revised. i think we have to look at trends and anticipate. i think the fed is behind the curve, typically >> absolutely. just get through it all right. jeff, quick last word. >> yeah, one of the things that i talked to economists about and asked fed officials about, we

look back at this, did we learn anything from any of this? you wonder the fed was so far behind the curve as far as inflation. they kept the pedal to the medal and kept buying bonds. did they learn anything from this when we go back into the next cycle, which is inevitable, will we see a more proactive fed or a reactive fed >> they're not going to listen to the stock market. >> the last 13, 14 months of market history just shows the kind of frustration that investors have with the fed. and i think there is the point can we just get away from fed speak and can you guys just set policy and stop trying to predict the future, because you're not very good at it >> rick santelli not loving it the fed forced us all into equities, and now they're saying

they don't care the market is sinking. thank you, everyone. this year. are you sticking with it as they hold their investor day? what are you listening for >> yeah, kelly so elon musk is the most underestimated ceo in the country and personality. so what you heard people saying is he was distracted with twitter. it doesn't appear that was the case compared to previous distractions when he was butting heads with the fcc and hanging out with joe rogan late at night, this seemed to be easier for him to get under control so we stepped in, because we have opened it in the past and we got out too early so what we'll be listening for is, you know, what is the expectation for the new 4680 battery technology what is he going to do about the

lithium problem? you know, we own lithium, we own all the metals and miners, but there is a shortage. we're going to have to come to grips with mining and freeing up these metals so that the ev market and green energy in general can grow i want to hear what he says about that and the next gen, a cheaper car for people, his projections i'm less concerned about >> so i'm curious, the company is reportedly looking at adding positions for ai and all of this you still have the twitter distraction. you know, what would be red flags for you tonight? >> well, i think -- i hope that he gets the twitter ceo solution solved he twitted out that twitter was his $44 billion not for profit

i thought that was his hilarious. i think what i'm concerned about is margins when he did price cut, it did drive demand i want to hear how they're going to meet demand and then what expectations he has for margins going forward. he's in an inviable position so he has a lot of flexibility in terms of being able to drive demand and what's going to happen in china? that's critical. >> great point and on the point about margins too, people pay up for that. if it looks like they're going to turn into a regular old carmaker, people would be less excited. nancy, thank you for all your time today >> thank you, kelly. perspective home buyers are on the sidelines as rates have moved higher diana? >> mortgage rates moved higher last week, and that continued the pullback from home buyers,

even as the spring housing market is supposed to be heating up applications to buy a home dropped 6% last week compared with the previous week volume was 44% lower than the same week one year ago it's now a 28-year low and this, as the average rate on the 30-year fixed rose to 6.71% from 6.62% that's the highest rate since november of last year. now, mortgage rates have moved 50 basis points higher in just the past month last february, rates were in the 4% range applications to refi a home loan down 6% for the week down 74% year over year. that's because they' have alread reified. mortgage rates, the trajectory appears to be higher after that brief respite in january kelly? >> and my head spun and did a

360 when they put out a note saying the housing recovery has started. >> yeah. if i had read that in january, i would have said yeah, definitely started. we went to an open house where there were a ton of people people signing contacts jumped in january because rates came down to near 6%. i got this report saying the housing recovery has stalled why? because of the higher rates. we are up near 7% again. and inventory is much lower. new listings are dramatically lower than a year ago. so while overall supply is more than a year ago, new listings are lower. so nobody is buying the homes on the market, because they're too expensive. >> rates are like a governor as soon as it looks better, they go higher. diana, thank you so much coming up, dking dollar.

the stocks is down about 2.5% today. but monster is the top s&p stock over the past 20 years better than apple or netflix, even nvidia is up 120,000% so if you're looking for other fx stock plays like this, our next guest has three of them plus, from one of the worst in the dow to last year to number one in 2023, we have the latest headlines around salesforce and their results after the bell and here are the markets the dow clinging on to a ten-point game back after this. meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle,

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welcome back to "the exchange." more hawkish fed speak today with governor neil kashkari, saying i will continue to push up my policy path, pushing up the dollar index, up from 20%. are we heading back to the late '22 highs? let's bring in boris, managing director and a cnbc director let's cut to the chase are there other stocks that could get monstered by the

dollar >> monstered by the dollar i think it's -- the current situation is a three-way trade, where the dollar stays more or less stationary and doesn't rally much from here, the euro strengthens and the yen remains weak so you have that three-way trade. i think there are stocks that benefit in each one of those scenarios. >> so let's start with one that i think you remain cautious on is it dijio? >> it's a great company. but here's the problem, it's a company that produces in europe whose main selling markets are north america and asia pacific and organic growth in north america has slowed significantly. like the whole covid, everybody having cocktails trend is really tapered out for now. and then i think it's going to have problems for them, just on

an organic basis and because of the currency, i think the euro will strengthen against the dollar and will create a currency tail wind. for now, the stock is great. you see the stock coming off the covid highs now. i think it's going to remain weak for the time being. >> to be clear here, you think the dollar -- it's not going to necessarily break out further from here. you see the euro strengthening >> right and this assumes the following scenario if you think that we kind of are muddling on through here economically, and the fed remains gradual, that's the critical thing if we're staying at 25 basis hikes, the umph the dollar had is gone and whatever rallies we had will taper off that means you won't have super strong king dollar going forward. either the dollar just runs ahead because of interest rates or it's a safety trade

as long as the global economy muddles through, we've already done like most of the work, i think the dollar rally is tapered. so you won't see dollar strength really hurt too many people. >> that will be a relief you do think that euro strength could be something to watch for european profit margins. >> yes, correct. they have a lot to catch up on >> oh, my gosh, that's a whole other ball of yarn japan, you're thinking the yen stays relatively weak here, and that gives way to american and japanese multinationals, where nike and other places should be looking right now. >> the nuanced trade here, the yen remains weak because the bank of japan is going to the new boj commissioner he's going to continue the follows, and that means just a

yield controlled move on the boj monetary policy, meaning they're not going to tighten too much. they did have very high inflation, but i don't think they're really going to get -- i think toyota is kind of a surprise trade here. the stock has fallen 26% since 2022 it's trading ten times earnings. i've got a 3% yield to it, and even though they're late to the game, they're finally coming around to the ev market. they have plans to have 3.5 million units by 2030. they're going to have 30 new models and toyota is a marketing and a production behemoth. when they want to get serious about something, they get serious. their brand globally is second to none. so if they start stepping into this market, they will perform well and i like the stock on an

valuation basis. >> this is why people watch. thank you for your time today. >> thank you coming up, are we witnessing ai's iphone moment we'll hear from one analyst who says we're on the break of mass adoption, and he has the names that will benefit the most and take a look at the sectors on this trading day. a utilities and real estate is higher interest rates. energy, the laggerer he, but up 2% today back after this. (vo) with their verizon private 5g network, associated british ports can now precisely orchestrate nearly 600,000 vehicles passing through their uk port every year. don't just connect your business.

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exchange." it's been a sea saw in trading today. the dow is back to negative territory by 19 points session lows, down 156 the nasdaq is the underperformer today as rates go higher let's look at the chinese stocks interesting, because they should be helping the nasdaq. the index came in way better than expected. highest level in 11 years. the k-web is up 4% large-cap chinese stocks, almost the same amount. and it's boosting the nasdaq, as well we look at some of the chinese e-commerce names, baidu, jd.com, nice rallies but there are down moves in the nasdaq today. let's switch gears to retail now, which is one area where we are seeing profit margin pressures. so our earnings editor, take a look at this we'll start with last year's gross margin levels.

look at crocs. almost 64% gross marge an year ago. kohl's around 33%. keep this in mind, what just happened take a look at the numbers this quarter. they are down sharply. crocs' gross margin, ten points down year on year, 53% k kohl's down to 32% walmart fell less than a point, but still missed expectations. remember, the bears are warning these profit margin declines will trigger future layoffs and a broader recession. let's get to tyler mathisen now for the update >> thank you, kelly. the prosecution has begun its closing argument in the infamous murder trial of alex murdaugh, saying the disbarred south carolina attorney is the only person who had the motive, the means, and the opportunity to kill his wife and son. earlier today, the jury visited the family's property where the two were shot to death in 2021 u.s. attorney general marek

garland defended himself when ted cruz accused the justice department for sitting on its hands for not charging any of the protestors outside of the supreme court justices and joe biden appeared this morning, with his labor secretary nominee, julie su, saying that working people deserve someone who will fight to make sure they don't get stiffed. kelly, back to you >> thank you, tyler. still ahead, salesforce on deck to report that's next.

welcome back to "the exchange." salesforce out with fourth quarter earnings this afternoon. and our own david faber reporting that elliott management has nominated a slate of directors to the board. this will be salesforce's first

opport opportunity. they're off their one-year highs, but the next guest says he might be a buyer but only after the dust settles joining me now is ken myers. you think this could give salesforce some leverage here? >> no, i don't think they have the leverage i think they made a mistake settling i don't think it's a mistake adding mason to the board. he will be great for shareholders but putting three people going from 10 to 13 people on the board, they lose flexibility with elliott and others in their settlement discussions and it didn't really prevent the proxy fight as we are hearing now with elliott likely to be nominated. >> is it unusual to have this many activists involved? >> unprecedented five brand name activists in this company, and these are not five activists that got together

and said let's do this these are five independent analysis and independent thoughts and making independent investment decisions >> why are they continuing to pile on? if they all have different takes on this, wouldn't they think we can work at cross purposes or have different goals and thoughts on how to get there >> i thought they have very similar goals. i think they want the margins to be better. they want better capital allocation and want to talk about succession and i think each one wants to have a seat at the table to be able to create the value obviously, mason has that. and i would be surprised if elliott also would like to be at the table. >> they probably want themselves in the board room more than matthew mcconaughey, for instance can he pull it off here, an iger-like moment where he comes

out with such clear plans that they all go, we're all on board, it's over. >> he can come out with earnings that are amazing and a great plan i tonight see that happening here i think the disney situation was a different situation. and it was a much bigger fight for him. elliott is not trying. i don't see elliott -- something really amazing would have to happen for elliott to not continue with their proxy fight. >> i always think of activists getting involved in stocks they see tremendous upside. it takes a lot of time could salesforce have that much upside how undervalued do you think it is >> well, it's trading at half where it was before. they peers have a margin and growth combination of close to 50 and they're in the 30s you know, they want to bring their margins from 20 to 25.

i think the activists think they can get margins better than 25 so there is a lot of opportunity here when you see five brand name activists that really are great value investors, all interested, i think that's a huge indication that's a ton of value. >> and you would get involved if they looked like they're coming out ahead here >> there's no reason to get involved now i wouldn want to see how the dus settles, who is going to be on the board at the end of the day. so we want to have activists on the board that can create value. just no reason to get involved before you know what that will look like. >> growing board room, extra chairs as this plays out ken, thank you for your time today. ken squire don't miss jim cramer's exclusive with marc benioff tonight. still ahead, shares of eli

lily higher on the announcement they are cutting insulin prices. the broader health care sector taking a hit, as well. down 7% in 2023, despite some big fans of it and some of the biggest fans are well off their 52-week highs we'll be right back. what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.

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welcome back eli lilly shares are higher after they announced they're slashing the price of insulin. meg is here with the details and what's behind that move. >> this is a pretty big deal after a lot of pressure from washington, eli lilly issaying it's slashing the list price of its insulin by as much as 70%. now, the list price is important, because that can be what patients are exposed to if they have a gap in insurance coverage or have no insurance. so they're cutting their branded

influence. these are multibillion dollars, and they're getting them by several billion dollars. they're going to be launching an interchangeable biosimilar called lantis for $92 for a five pack and guarantee $35 as the most patient also pay out of pocket this is important, kelly, because patients have been forced to ration insulin more than 16% in the past year according to a study in november that's more than a million people in the country. this could have bad health consequences, including patients dying because they wouldn't afford insulin this morning, eli lilly held a meeting, and we ask the ceo why this took so long. >> post patent products should become cheap that's the understanding that policymakers understand how our

industry should work that hadn't occurred wits supposed to work here and it didn't mean while, the president lauding the move todaya statemee saying, essentially, it's big deal and it's time for other manufacturers to follow. so we reached out to the other two big insulin makers they got back to us, detailing the many moves they have taken similar to the previous ones to provide patient assistance and introduce lower cost versions to the market no indication they plan to follow suit in cutting those prices we'll have to see what they do >> why are all the stocks up today? >> well, eli lilly in particular is an interesting one. i was just talking with evan eagerman he was saying the positive

attention from the president is a good thing there's also potential for more volume of their insulin. this is seen as a leader in alleviating the pressure on insulin pricing. we'll have to see what happens in the marketplace >> meg, thank you very much.e es it's on the brink of its iphone moment how far that could reachened the companies poised to benefit. and cnbc's new show "last call" debuts one week from today. catch it monday through friday, 7:00 p.m. eastern. "the exchange" will be right back ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna.

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call and start saving today. comcast business. powering possibilities. welcome back chatgpt, it's all the rage, sparking debate from the classroom to the boardroom and my next guest says ai is on the brink of its very own iphone moment and he's got a list of companies that are poised to

benefit. haim israel. along with our own steve kovach. your job would be very fun, chaim, i feel like, you get to move from one much these big trends to the next this is a biggie we all have had that moment of using it for the first time and going okay, this is different. what are some of the best ways to play it, do you think >> well, the thing about it, this is a revolution, definitely the adoption rate is unlike we've seen with anything, any technologies up until now. and the akscceleration has been mind-boggling. the size went up almost 2,000 times. and the next version is going to be another ten times at least in a couple of months' time nothing like we've seen in the past i think first and foremost the biggest immediate winners are going to be the hardware, meaning processing power to train ai we have to jump

300,000 tons of processing power that we need it is roughly six times the module processing power definitely going to be one of the biggest winners over o'here. data centers because we're going to generate so much data and going o'use so much data infrastructure around that those are going to be the immediate winners we're going to see over here. but if i have a more long-term view, every industry could be a benefit here we had a defining moment with the iphone mode, as you said every industry, every company that would start using it, start using data in a much better, much easier -- >> it's almost like thinking okay, the iphone is going to benefit chipotle it's kind of unpredictable or it's going to create uber, things like that and just to make sure what you said there, haim, there's three areas you see benefiting big tech, the search giants, semis and hardware, nvidia, asml arista networks we don't talk about as much. then adobe, palantir, s&p, some

of those names benefiting. i have to go back to the big tech search wars because we had some info from bernstein this morn thrg trading desk but pointing out that google gained market share in feb. microsoft lost it slightly there are the figures right there. and when i finally got to use bing's ai engine it wasn't as good as the early -- >> it's not chatgpt. it's very different. and in fact they kind of reduc ed its capabilities because it's giving all those wrong answers when you do he to a search engine you want the right answer, right? and i saw your tweet today about the research and that really stuck out to me. i didn't realize the bing app fell to like 150 or something in the app store rankings, a sign that just the normal person hype has just completely evaporated >> right they need to bring back -- take the reins off. >> exactly >> in a way, haim, what we're trying to figure out is where is this going to go if microsoft wants to kind of keep the guardrails on that's fine but someone else is going to take them off >> first of all, we have to think that the current version of the chat bot, we have to look

at it as a beta version. this is not what we're going to have very soon it's getting -- the committees are getting better much faster with seeing the mass adoption happening. think about it, that in five days more than 5 million people start using it it's nothing that we've seen anywhere in the world up till now. it's only a beta version remember that. so i think it's going to get much better. we are waiting for the next version which is probably going to come in a few months. there's no estimates of what the capa capability's going to be but anywhere between ten times to even more in terms of what we have now in only six months' time i think that we need to understand we're just at the edge and i have to compare it to the iphone the first iphone, 2007, we had no idea what to do with it it was a fancy funky device. but after the app store, then the google play store and the android device which really made the revolution, it took two,

three years. can you even imagine your life ten years ago before you had a smartphone this is the defining moment we're in right now >> agreed. steve, one of the names here, meta, introduced -- what is llama? and why do they do it so under the radar? >> right >> what are people saying about it >> well, a lot of these companies have been working on -- llama is short for their large language model that's the kind of data sets that inform how chatgpt and all these chat bots work look, all these companies, the reason why we're seeing everyone announce it in rapid succession, they've been working on this for years. google's been working on this for years. facebook slash meta you can argue they've been a leader in ai for several years it's all just under the hood, kelly. even apple, what they're doing all their artificial intelligence, you're not chatting with your iphone or siri directly but a lot of ai is happening every time you take a photo, for example every time you do a face-time call all that image processing and stuff is ai. i do want to touch on what haim just said about the app store, though he's totally right that opened up software

development tomillions more people all of a sudden and i want to go back to what nvidia ceo jensen wong said on his earnings call. he made the same comparison to the app store. but i don't know about you, kelly. i don't know how to code but i do know how to speak like a human. >> i don't know if i do, but -- >> what this does on software development is it lowers development to entry to be a software developer you just need to tell the computer what you want to create instead of code it yourself. >> so is the app store -- if i want to bet on the app store and all the rest of it, does that just go back to each of these big tech players kind of having their own? >> not necessarily like let's say if apple wanted to bring this kind of technology to app store development, they would have to make it their own tool basically for developers to use. again, just imagine ind of saying create candy crush, instead of coding a candy crush game you just tell it make a puzzle game and it does that >> we'll leave it there. gentlemen, thank you both. haim, good to meet you steve kovach, thanks so much for joining us today and that does it for "the exchange." by the way, if you want more

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tesla's investor day rivian tumbling after results. and we've got new auto sales numbers. we'll talk to the ceo of car gurus about sales trends as that stock is jumping >> plus big decisions from the fda and biotech stocks making big moves as a result. we'll talk to the company -- ceo of a company whose drug got rejected but the stock isn't sinking. but first a check on the markets which are right now red across the board. the dow in negativ