good wednesday morning. i'm sara eisene1 here with dom chu. we are live, as always, from the floor of the new york stock exchange. setting the agendat( for us tod, ever corp. vice chair ma kristaá guha ahead of one of the most anticipated fed decisions in a i while. >> terry duff also with us. his take on the extreme volatility that we've seen in the markets so far this month. >> later, an exclusive interview with the ceo of hershey, michelle buck, on investor day. co

inflation, and a pretty bullish outlook. >> so right now, qsarah, i gues the b characterize is this what happens pretty much every fed day. it's a holding pattern. >> which is nothing, until the fed -- all of these are undercards, underundercards if you want toñ call it that. the nasdaq composite pa! advance if you want to call it that by 20 points, that's 0.2% to the t(upside. the s&p 500 notably still above that 5,000 mark. we've talked about it a as a &8é9ñ+c technical level given where some now. the dow industrials, everything is basically fairly flat and calm ahead of 2:00 p.m. eastern time today. >> we rallied yesterday, and the market appears in a better moodó we came into this week wondering, is the bankingq turmoil still goinglp to affect the market? so far, it's been axd goodc few which was seen;or as the next potential domino to fall on word that there's going to be help on thatñi big banks like jpmorgan e coming in, so it's anotherok dy%

where financials are calm, which is very important. >> even the interest rate picture has calmed a little bit ahead of the fed rate announcement, but to manyñi pois that you've made over the last couple of hours,çó it's predictg in a certai it will be about whether or not there's any kind of context orw commentary about what happens in the future. >> what happens next. that is the story today.t( it is the r even if some out are dl are not agreeing that the fed should raise interest rates by a quarter point, mostñi investors are still expectin happen today. our steve liesman covers the fed, is in washington, will be at that news conference. and steve, it is ther right? because he's got toç?$up&k abou the financial stability concerns, the t(economy, andíoñ inflation. and there's scope for disappointment on all of it. >> yeah,;=z7ç and i want what you guys are just talking about in a second. first, let?nm me show you what think are reasonable expectations for this meeting today, given how>4)q market is priced. it could go either way. but here's what i thinr$are probably the market expectations. on the first hand, we're waiting

on the 25q basis point hike, 80 probability in the markets right now onçó that. i think the fed chaire1 willñi emphas% banking system is well capitalized, much better than it was in '08 and ok'09. and sarah, to your point, i sp:!%9-bujrj going to do that,ñ which we talked about, which is to separate monetary policy toolsfá from financial stabilit tools. we have separate things dealing with qthat, we'll keep going wih essentially reducing the balance sheet, some uncertainty about ie rate hikes,çó but we dealq with the financial stability problemsok with the n with the discount window, and doing what we're doing regarding this implicit guarantee of banks. i thinkclp what you guys are sag is interesting about the stability in the system. it's well to put up a two-week chart of the two-year, if you have that round, things are up a little bit, butñid%xd not forge about the incredible moves that have happened in just the last two weeks, that really haveñr changed the landscape that the

fed is going to be meeting in. and you look at, for jfokexampl the two-yearñi note, for exampl has been asi]q high as 510, 515. same with the banks, stable today, maybe even a little bit up. but those banking indexes still off asr8u$e fed meets today. >> one of the interesting things about being here at the new york stock exchange right now is you can run into traders from all over the place. that's the idea of being on the floor. and a couple of the conversations that i've already had this morning have centered aroun÷ almost has to goñi the one-quarr markets have priced it in, but what it does signal if they don't do it hypothetically. that they're almost telling you that maybe things are worse than they really are, or maybe that we think that things are better than they really are. is that a tightrope now that j. powell hasi] to walk, as a fed chairman want the economic side of things protecting against a

recessionq at the same time, battling that lpreally, reallye% beast of inflation thatok still looms. >> i've heard that argument a lot. i think signal value isçó important to the fed, butçó i think at the end of the day, dom, if, indeed, the market is in bad shape and it's going to bew3 hurti] by that 25 basis po hike, that thìuzuldn't do it. u" '9-■ that's the key thing. i mean, there is an ioúeresting question that has to do with thó books and the banks. what are we talking about? we were talking about the asseti of the banks are lower in value because the fed has beenú rates. so what happens when the fed hikes rates again? the assets on theq==-m■ of the banks will get worse. the fed is hiking into a bit of a maelstrom here, and whether or not it really wants to take the theoretically, financial stability tools andñi monetaryj policy tools are different, that's what they would like you to believe, but that's in theory. we'll see if that's true in practice. >> and after they've already done 500 basis points of tightening, which is the backdrop here.

there's been a lot into the system. >> e4otly. >> thank you very much. it's going to be as7■ funñ[k inw for you. steve liesman. so we know the market is pricing in 25 basis points asçó añi hik but what will the fed signal moving forward when we hear from ujjñ let's bring in evercorps isi vice chairman, krishna guha. you're expecting 25, are you in the camp that says they should not do it, bjú or they'll go forward? >> i think on balance,+■ they'r okay to go forward wit today given that we see some encourage inge1çóñi stabilizations@ñthat interventions are working to tamp down some of the instability in the system. i think it isñ)hrs(ortant that they maintain control of through this bankingp,■ stress. for inflation control, butxd al for financial stability, as well, because we don't want them to losew3 control of yields at this pointfái)háime, but -- it' a big but, if they go forward,

i think they really should wrap it in cotton wool and signal after hiking 25 today, they're going to be very careful, very cautious looking ñiforward, whe they accept there's more uncertainty with more tightening might be required. and that they wouldt( be prepar to pause down the line if incoming information suggested that was thexse >> i agree. and they can do that. and that's perhaps thee1 most prudent thing to do. but the market's alreadyán(■ jug towards cuts, as soon as this summer in june. to me, that'sbwájjt to be what tot]pách really today. which is what he says and how the market interprets it about when the cuts will come. what do you think? >> right. so you're right that whether they go forward with 25, but try to make it that dovish hike that i wast(w3 describing, which is baseline, or theyñi still decid to pause. you can make the case for pausing right now, given everything that's going on. they will not want toe1 validat

expectations tha+gñ in anything approaching a base e1case, theye going to be cussing in the summer. in all fairness, i don't think the market price is at( they're not pricing the base case. the way i kind of read that,e1 certainly the market thinkse1 tt the fed will be cutting earlier than the fed thinks. but over and above that,e1 that cut in the summer is really about saying that the sum, you know, material possibility that the fed could be cutting in a situation where they might have to cut 100 basis points in the summer, right, so do you think there's a one in four chance that they're going to be cutting 100 basis points, you discount a 25 basis point cut. i think it's more about pricing the risk distribution than it is about pricing the base case. how does powell address this?ok ]8state-c/ you have to talk about çór if the impact in creditxd isn't that large, you will probably have some more work to do. if the situation was more

stressful and the credit impact 1ñ then we would have h-=■ adjust policy accordingly.% that's what he should try to do( today. the dotnn■ plot doesn't help. it's just one set of projections in a basejf case. >> i agree. i think the dot plot is going to be soe1 confusing. and he should just. >> yellen came out one time, qñ$shna andfá said, don't pay attention to the dot plot, essentially. because it's going to be confusing right now. >> oh, yeah, i think the dot plot is almost guaranteed to be a mess today, lpright? there's be policy makers going up, some going down. in any case, what the fed will f o even a sligso&y benign base case, and you know, that will look quitefáok jarringly differ from what's priced into market, in part because the market still views the credit shock aslp a bigger deal, but also, really important, because the market id pricing this tail risk as well, which won't show up in the scp. if they still publish an scp,

they probably will, butwm"áqrj some chance they don't publisho it at all, theni] i think you'ì% see powell say,e1 please@"n't py too much attention tow >> so krishna, it's dom. if you look at the way things have shaped upe1 from a kind of chapter point of view, there was a point when the fed --xd it hasn't had a simple w3task, butt had a u.s.-foc33■ taskñr up untl about call it two or three weeks ago. they could focus on u.s. inflation, they could focus on u.s. jobs in the economy. all of a sudden now, they now have got to contextually taker o p'king system woes that might be at play around the world. so it's now a global story for the bank. how does that change the thinking aboute1 how they shoul view what theire1 rate hike trajectory should be going forward? the whole playbookok has nowe1 changed? >> so you're right that the playbook has changed. i say it's in two dimensions, right? i think the biggest is this potential tension between financial stability goals andr inflation goals, right?

and then additionally to that, as you rightly said, particularly once you bring in these stability issues,e1çóe1 t there is a global dimension to that thate1 is potentially more powerful than the way theyñr always think aboutxd what's goi in the world in terms ofxi5m■ macro economic impact. yes, their life just became a lot more complicated,xd you kno obviously, they'eo still try to filter through all of this in termsi] of what itxd means for nq) áz as per yourlpok conversation with steve e1liesm, the issue here is that the fed is going to try to walk and chew gum at the same time. to promotew3 stability, rates stilltorientedxd towards inflatn control, that works towards providing the stability instruments can tamp the stressó down. it's still hard to figure out exactly how much rate-equivalent tightening am i going to get from the bank stress and credit side, and how much rate hiking

does that mean i really have got much more uncertain now. >> right, and eventually, that catches up. (p&ance sheet qtools, we've seen that -- that strategy used p r(t&háhp &hc% bank of englandñ last year, to shore up the failing pensionrdfunds, while te bank of englandr ]ptes at the same time. so as long as things don't get worsehú$nd until they really spill over into thee1 real economy, krishna, that can work, right? >> so, yeah, i think you're right that -- what the fed is doing is, you know, is not as extreme as what the bank of england did, which was outright purchases, you know, what they are doing is providingçó a lot liquidity, the standard classic lender of ÷a+q■ resort. banks that under stress, need some more reserves, come to the fed, pledge your collateral, we'll give you the reserves, anq of course some innovative programs around that. but thew3 basic concept, that's liquidity provision for banks that need the liquidity. your monetary policy, but if the

point in time,w3 you have to orient all your instruments in át direction to try to and as i said, even if you have got the stability peace kind of the problem and you've got a bunch of stressed banks and other banks who don't want to put it in the bucket of the stressed bank. they are likely all going to be hoarding liquidity and curtailing their risk-taking and lending goingçó forward. that's goingx÷(="uz some part o the fed's work for it. a bit less rate hiking. how much less? impossible to nail down right now. >> well, powell said, last swa&er, he wanted to see pain. we're seeing pain. we're seeing the impacts of those rate çóhikes/k >> yeah, you know, be careful what you wish for, right? >> exactly. krishna guha, thank you very much. good to have you. >> sarah, let's hope it's as easy as walking and chewing gum at the same time.jf een a shelter for investors out there during the recent banking

turmoillp as the company says daily volumes mayb surprisingly are up 50% year hvqp) this month. all the volatility is good for the first time your sales reached 100k with godaddy was also the first time your profits left you speechless. at the counter or on the go, save 20% with the lowest transaction fees and keep more of what you make. start saving today at godaddy.com your record label is taking off. but so is your sound engineer. you need to hire.

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welcome back. the convergence of today's interest rate decision in the current banking crisis is creating at of uncertainty for investors and traders, but amid

all the volatility, xdqcme grou hitting a daily trading volume record of more than 66 millio@ contractsçó this month with the investors flocking to futures contracts, other derivatives as they seek to protect their portfolios, speculate on outcomes, so joining use1 now i an exclusiuu cnbc interview is terry duffy. it's great to see you again. we've talked a lot in the past about how volatility is great for exchange eñvpáors, but can you put in context for us just how volatile this current environment has been compared t( past? >> i've been around a long time, dom, and i've seen a lot of different scenarios play out in the financial sector. taking cme public in '02 and seeing some of the things that happened all the way through dodd/frank, the collapse, financial crisis and other events that have happened. one of the things that really kind of surprised me over this last couplee1 of weeks is, you

know, when you look ate1 fundamentally what's going on in the world probably the last six to eight weeks,/ been a whole lot of change going on, except for one thing. that is the continuation of potentially rising of interest rates. so when you look at a bank like svb or signature, or other banks that have lost a tremendous amount of money by notxd protecting their bond portfolio, i say to myself, i say, wait a ñ isn't that what they do for a living? is do interest rates. and all of a sudden theye1 did e risk? so i'm really perplexed by this. and there's no what happened here. the products not only available here at cme, but other institutions all around thejfxd world to mitigate that risk. you're trying to get a yield and all of a sudden your customers want the cash back. ;pmñ how can that be q a surpri to anybody? and then i know you guysxd are talking a lot about the fed. i'm tryingok to figure out, why should it have any influence on the e1xdfed? you've got to do a mandate and

file thatñr dual mandate and ye we should2■ if we should f silicon valley bank, signature entities that don't know how to manage risk properly that are in the business of interest rates. >> all right, terry. you're coming out guns blazing right now. so i'm going to -- >> no, i'm u-b >> i'm going to go along one of those threads here. let's say you've made those re you seeing any kind of a behavioral change, wo/■tho in your client base or the addition of new clients or the use of new, different tools, i guess? e■ engaged over the last couple of weeks, with certain different typesw3 products that they haven't maybe been asq engaged with in the past. you mentioned the different products that are out thus.. w3yeah, do excellent question. the qower is absolutely yes. with volumes that your the beginning of your entry into

did the largest amount of volume it wérçó did in the history of the country of 66.2 million xd contracts, the majority ofc whih were interstate contracts. people are mitigating and manage risk at qcme. my point was, they're doing it f■ter the event has alreadyi] one of the things i've beenq preaching for years is, you don't know when an/5/q■ is you have to anticipate it and you have to be hedged prior to that. yes, we are seeing record amounts of i]volume. i think people, especially in going to be forced to mitigate risk more effectively. i saidlp this at last week, when you look at the grain markets, dom, you know, elevators were loaning moneyñi i to their banks, to the producers of product of corn, wheat,ko■ soybeans, and other things we grow in theçó country long befo these polices exploded. i'm going back to the '70s and '80s. what they made them do was have a hedging program in place. some of these second and third-tier banks should have hedging programs in place in order toj/x facilitate their

business. gone on. >> terry, it's sarah. it's not just managing interest rate risk, what's happening right now, right? total repricing of fed expectations,ñrñrcr the economy, ⌝#ñ usually happens when you see a flood of volatility in action like u■thi. is the market right, the fed right. >> well, it'sfá hard to say, sarah, if the fed is right or the market is right. i'm here to manage that risk 4ow people. but i have said that and i'll say this historically, the nqc has had plenty of opportunities over the last decade to increase rates in an environment where it wouldn't have mattered at all. in a very difficult tightening - session, where a host of things happen all at the same time. and we get what we get. so i don't know if the fed is rightxo9■ the qbá)qá is right, but it's just a question of, as i said earlier, the fed has a dual mandate, andó[■ i think th fed has to stay with that dual mandate. mandate, thei] mandatefá requir

maximum sustainqduz employment. the fed is raising rates in order to make unemployment go up, not down. so if and of itself, what's going on right now in these rate ,(rá bizarre from my understanding. >> but you -- it sounded like you thought that they should stick with it, because there'sq still an inflation problem. >>ok i didn't say they s stick with it or not. i think there has been an inflation issue, the question is, what i'm saying is, if they believe that their dual mandate needs to continue on, they should not let these banks have tpthey should stick with wh they're doing,e1 if they believ that's right.i] i didn't say it was right. i just said if that's what they believe.rm8a%"ujjrt think that svb or some of the other banks.- >> you know, even if it was a bunch of irresponsible banks not managing interest rate exposure, whiccs what it is. you know when there's bank failures and we see pockets ofe contagion across the global banking system, that ultimately

could be a big systemic problem, not to mention have an impacte1 on, as banks hoard liquidity.r >> yeah, and i think that'sñ exactly why we hadxd dodd/frankn 2010, sarah, to make sure that we don't put ourselves in this situation. if you look to the elected officials today or the appointed officials, i should say, whether it's secretary yellen or chair powell, they're saying the banking system is sound. i have tot(fá take them at thei word. but when you have second and t( third-tier banks that don't have the same requirements or shadow banks that don't have any requirements like the cf they are acting like big banks trying to get a return without having the same requirements as a jpmorgan, goldman sachs, or some of the other banks that arr under the dodd/frank deck. so, again, i@áwimyá wh you're saying. now,e1 is it systemic or is it what one of your earlier guests said today, is that the price or doing business? i don't know. i don't like to see this stuff happen, but i don't knowtúlf th contagion is going to continue

on through the economy. i thinke1 that's up for the poly advisers and others tofá makee1á deci«n. again, i'm herejf to manage the risk. sarah, but again, i think when you just look at it practically, going on. >> terry, before we let you lpg one quick question, you and your company are very big sponsors in the world of professional golf. there is a highlye1 controversi rule being proposed by reg urals right now about playing different equipment between professionals and e1amateurs. i want to get your on the record take on that. >> well,r me a high harde1 one çóthere.i] listen, i think it's -- the game is supposed to be fun for everybody and for me,7ooe1 i th justin thomas saidñrw3 it absoly right, if you want to stop people from jumping higher or running a faster mile, it's kind of ridiculous. and to say that we're going to t of room on golf cours is crazy. hit a 3u■ wood instead of a

driver. i don't know what else to tell you. >> terry, thank you very much for the thoughts there and for the fedt as well. we'll see you soon.t(xd >> thanks, dom. >> i didn't know about that golf controversy. is that a big deal? >> a big deal these days, for equipment makers as well. after the break,e1w3 invest% now more exposed than ever to a fewe1 specific names. whether they like it or not. we'll explain, next. we'll explain, next. plus, don't miss theceo of ♪ prizefighter... ...meets trailblazer. ♪ ♪ classic meets modern. ♪ at morgan stanley, we may seem like a contradiction...and we are. ♪ ♪

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welcome :a this is an interesting one. the combined waiting right now of apple stock and microsoft in the s&p 500 has hit an all-time from strategas securities going all the way back to 1990 for that data. the two stocks now make up more

¿÷%anuzñ13% of the overall s&p , each with a market cap above $2 trillion.xd alphabetftj5ñ the third largest coming infá with a market cap o just over $1 trillion.b.■ now, the overall weighting ofq/ tech in the s&p. account some of the details now peakfá for companies like apple and microsoft, as it has been in the past. >> right, at&t, and others. no longer ine1 that spot. pippa stevens with that for us. >> good morning. like children's medications and antibiotitq in short supply. posing a national security jfri. that's the conclusion of a new report from democrats on the senate homeland security committee. they say new drug shortages rose

nearly 30% from hé12021, to 202 due to economic factors. reliance on foreigne1 sources a democratic senator elizabethçó warren and republican senator rick scott are forming an unlikely team to increase oversight over the federal reserve. in the last hour,xd ÷y unveiled replace the fed's internalçó watchdog with one appointed by the president. and ine to airlines and their pilots,çó the federal aviation administration is stressing the need for continued vigilance after a series ofsv4 close calln the air and on runways. it says while the number of incidents is not rising, the potential severity of the events is concerning. back to you. >> all right, pippa, thank. pippa stevens. when we come back, meta gets its third upgrade this week. is itq too late to get intox#p stock that's up more than 120% from its lows.e1 from its lows.e1

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welcome back. we're about two hours into the trading session right çónow. let's go post-to-post with bob pisani with a look at what's moving rigxtm■now. >> t(dom, a lot's changed in th lastewthree okdays. one of the thing that's very noticeable down here, the volumes are getting back to normal. they have been extraordinary in the last twoñiweeks, butñi particularly two sectors, banks and energy stocks are getting much moroiok back to normal. trist is aq classic mid-level

regional bank.e1 you want to see here, we werexd $45 -- we went to $30 on friday. now $33. so $34. so we're rallying the last two or three days. the thing that'se1 really o look at is the volume. here's 8 million chaser. that's close to normal volume. it will typically do about 14 million sharesxd a day. on friday, wecfzi traded almost million shares of that. ó 50 million shares. the sa space. remember what happeneda5■ to oi. we were 75. we went to $66 on oil on friday 70 today. and so a lot of the bk refiners, here's your classic big refiner. this is valeroq bouncing back here. you can see,w3 we were at 126 o friday.xd now 134.5a■ that's three days in a row to the upside again. i want to point out the volume. this gives you an indication, 1.2 million shares. normally they will trade

ar million shares. on friday, it traded over 40 31%=9qáip z c think about that. you're normally doinga5■ 4 mill sharesçóñr a day and suddenly ye trading 40 millionu■ shares, te times that. and now it's back to a fairly typical day. you can look at this a lot of different ways, i]sarah. you can look at the vix, at price action, but a very good way to judge just how scared, how pars ipating everyone is in the market is to look at the volumes and they're getting very much back to normal levels. sa2hback to fáyou. >> a lot of people in the bond market focused on thefá move index, which is the volatility. like the vix for bonds, which is seeing some crazy 5a■levels. thank you, bob. bob pisani. take a look at some of the (á(r notes catching ourlp eye this morning kicking it off with 5a■meta aga. key =s5zu■ upgrading it to ñr overweight, $240 price target. they point to greater than expected cosjd cuts and solid a spend. it has been quite the comeback story already. stock'1uajujuu$an 100% from

averages and might have further room to run as competition faces scrutiny. tiktok ceou■ also set to testif tomorrow at congress as the pressure to ban the app let's bring in our own julia boorstin, who covers the stock. are there any othere1 analysts left to upgrade this name. >> anal9mruurá's+orth pointing ÷zy meta upgradeu■ as well. he also talked about the potential to make money from reels, which is+■ thee1 short-f video format that is so similar to tiktok. also saying that there are other areas that can still be çó unlocked, including the i, as well as subscriptions and then the click-to-message ads, sort of aá we move more into chat bots in the future. there are a lot of areas hereñ that analysts are really ç if you looke1 at the fact that

eìáhp &hc% they're going to be spending less money overall. >> julia, this is one of those situations where you could view it as a mea culpa, right? a lot of these folks didn't say buy when it was down below. is there anymore, though, in terms of, i guess, positive catalysts for this company given the fact that we've seen the run already? >> well, look, it's e1interesti, because right now qmea is in th process of doing these layoffs, they're not done yet. i'm hearing from sources at the company thatxd there's a lot of anxiety, morale might not be so great. i guess the question is wcuju from the outside, the understanding that this ist( añ company that's going to be far more leaner, that in a way that that might even help with innovation. but i think the main catalyst we're all watching in the next couple of days is tiktok ceo testifying. ó if there's a for-sale, which couldw3 effectively amounte1 to ban. or if the company is spun off in such a way that it isn't operating in the same way, that could amount to $7 to $8 billio1

in u.s. ad revenue. that would be split up among its rivals. so i think there's question of, cothat bexd a major catalyst, n or meta, bute1 also for some of these other companies such as s.n.a.p. and pinterest that havq seen their stocks go way up thad a crackdown on tiktoke1 could b coming. >> obviously, the fundamentals are strong,xd according to the analystsfá for meta and the wñár loves the 1-%ñ of ef mark zuckerberg and the focus more on ad revenue. but also, i think this move in the stock is coming amid tech winning out again, right? big drop in interest rates, so all the f.a.a.n.g. stocks go right back up. and these bigger ones are ones. look at the meta e2rstory, what triggered a lot of the big drop was the focus on the t(t(metave about how much it wo?zq cost less of axd focus now because they've ratcheted back some of those expectations. this is, maybe not surprising, but i w3guess, you wish you'd

caught the bottom. >> yeah, that's 74% in three months. thanks, julia! next up, let's move on to the shoe world.q nike down this morning, after an initial pop on the top and be quarter. inventories are an issue, flipping china sales may be at least giving some investors a bite1 of a scare, but(#e%ñeet is still bullish overall. to overweight and raising its price targetr share. another shoe company could be nipping at its heels. credit suisse calling on runnind shoes to quote the next that stock is popping more than 30%xde1e1 this week after quoti strong competitive growth.w3 you do have a veryeq$(rt keen sense of the consumer. >> i thought you were going to say, a big shoe collection. >> i cannot speak to the shoe collection part, butrñ$r will s

has always been -- they're the top of the heap.çó they're the biggest ones out there. >> and there's no indication that that is any different in this quarter. in fact, the quarter was all about brand strength, killing it, especially for women and for the brand overall. the strength was in the u.s. it was in europe, even in china, uz that those sales were weak. it was 1% down 8% if you factor in the currency impact. the executives on the call said december was really tough in it was justxo=%9 everyone was sick, so traffic went down, january, february tk pretty bullish about china on the call. so the brand strength is in tact and thwy"have managed to grow market share. i'm a littleok surprised by the market reaction. you know, you cani] -- some peoe have beenok disappointed about e gross margins, which have declined. &háhp &hc inventory issue, right? >> and that's exactly right, which was well telegraphed, basically, they werx? stuckw3 w

so much inventory the last two quarter, inventory growing 43,ç 44% those quarters that they had and they have made progress. inventory this quarter was only up 16%. and executives say that that's going to be clean by the end of their fiscal year, which is one more quarter. the bottom line is that there's nothing in here that suggests consumer weakening or that weakening. there are a few h apart, but again, the analysts, and why barclays upgraded say those issues as being temporaryk the barclays called it interesting, but also suggests that this analyst totally missed the move, because nike has rallied pretty strongly in the last few months. >> before we end this5a■ have had a lot of history together. i've seen you in your nikes before. have you purchased on running shoes yet? >> i have not. >> interesting. >> but i'm not a runner. i see them everywhere, not just from runners. nike's noxd stranger to having these competitors coming around.

it was all-birds, hoka, there's a lot of them. they just have such dominu market share in some of these categories like running that it takes a lot to make a dent there. r(t&háhp &hc% on onon, if you will, because tonight with jim cramer,u■ we he on running featured --5a■ >> he loves that. he took out a pair with mary dillon from footlocker p,■ yesterday. >> i was going through the airport in sarasota, florida, last week,5a■ the number of peo i saw that didn't look like necessarily, sarah, butnb■ were wearing on running shoes was wearing on running shoes was though the roofr. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums]

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when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. time for our "tech check" segment and our deirdrelpe1 bos looking atq alphabet and our ai announcement. tpconcerns going into thise about the accuracy? concerns, and that's why google kind of pushed it off, but it still happened earlier that maybe the company had originally planned. so finally, it did take the wrap off ofe1 agre1 generative chat yesterday. as far as i can tell, available to almost anyone with a g maile address. you have to get in line to be able to test it out. it did not receive tv%÷ kind of enthusiasm that chatgpt and microsoft saw a few months ago, but thate1 might have been the exactlpsarah's

point. google has repeatedly said that they need to balance the bulls with the responsible. that led to a very cautious, very much not fun experience for early users. bard opens with a disclaimer. it has limitations, itt( doesn' go off the rails. google made surexd to paint it a complement, not a replacement for search, itslp cash cow. satya nadel and microsoft continue to go all-out on generative r moving beyond taq chatgpt function, day moved into enterprise, and actual xd applications. late last weekend,w3 this kind flew under the radar.e1 nadella spent about 30 minutes on youtube and linkedin, explaining how microsoft office app would integratee1 opene1 ai technology, emphasizing that they're moving from aij89 auto pilot to the okco-pilot. that is a key shift, guys, as we see the inaccuracies, and the flaws of these chat bots. ultimately, however, this bottle for generative ai supremacy,

still very much in its early innings. let's show you how the stocks have done. sixe1 weeks ago, markets hade1 declared microsoft the early winner. look at what has happened since then, google shares have not just caught up, they haveçó jjt us that we are still very early. this has brought us a lot of announcements from the biggest players in the space. >> i know you'll continue to watch it. deirdre, thank you. after the break, the ceo of hershey is with us live from the hershey is with us live from the company's investor day. you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise

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welcome back. hershey hosting its investor day today reaffirming bullish the companyt( he can inspects n sales to grow between 6% and 8% this year. the stock sits just below an all-time high. joining us in an exclusive e1 interview. hershey, pennsylvania. good to see you. welcome back. >> thank you, sara. it's great tob confidence 4 sales and earnings growth that was pretty bulish going in? >> we continued to see accelerated momentum onjf our business. in fact, v

in terms ofq ouri] performance. and going forwardlp our categors aligned well with consumer trends. consumers are spending moree1q e at home. they are consuming more food at home. they are very interested in emotional well-beingçó andi] ou chatbot category is a place they come toçóq tofá seek that comfo ikd8>> do you see any çyáidence michele, consumers are pushing backok against inflation or slowing down because of thexdjf changing lpeconomy? that?r >> well, clearly consumers are faced with makingñiçó some difft decisions given these inflatuv times but we have seenxwourr incrediblyñi resilient, and i think that's because there arelr accessible,ñr affordable difficult times. consumers have told us chocolatá

andçó salty snacks are two thin that they are not going toxc7q■ back on, that important for themq at this poit in time, so we continue to see a lot of interest in our categories. we offer a wide array of products at different price points, and i think it makes it easy for everybody to $:q%%a■te.qñie1 >> food inflationlp is among th most stubborn areas of the entire basket to come qdown. are youvzráur&l raisingxd price? pr elevated for a while? what can you tell us?vn >> so we're always evaluating thejfrñ$sp)ketplacelp to unders what we need to do to drive our business most efficiently in terms of the role that price needs to playt(ê enable reinvestment. going forward we expand our

portfolio and accelerate our position across sweets and better for you which are two high-growth segments. and then the growth on our salty snack portfolio with theq acquisitions we've made over the past several years on skinny ( pirates andxdlpdots, really integrating thosei] acquisitions and scaling them for the future.e1qxde1 >> michelle, it's dome1 here. one of the thig[ i thought about asok we weret(qt( getting about the dynamic. you're one of the big co&s)sq) brand companies that does have a presence ini] pet foods . many of your competitors do froq privately held mars to palmolive.fáfb■]oke1 i'm a two doing person. >> i have a dog i love like a human myself. right now we are really focused on human snacking and there's so

much opportunity ahead of us in our popcorn and pretzeli] businesses that our first focus billion ini] revenue. we're really focused on those areas of theó[■ portfolio first. >> are youqb[=-%9 acquisitions in salty snacks in particular?okqlp >> so we arexd always open to acquisition and our strategy hasn't really changed. cot categories, growing high growth brands asfá we've purchased recently that enable us to really tap into incremental snacking t(xdoccasions. what we're going to focus on what we have and realize the full value of that,xd we are a8em■ scanning the marketplace would pursue that. >> i guess i saw the biggest question around the stock righto now and it has beenqi] the slee, what long-term revenue growth

no question it's been st2:tz in1 covid, coming out of covid, people eating more at home. you get the benefit of higher÷ pricing. that long term those are structural trends where j(!t double digit growth will continue?çót(t( >> as we look ahead we're optimistic and confident in the future. some of the trendst( really see to be enduring. the move that we've seen to consumers spending more time at home. i think we all see that every day. we know that many consumers qvut the flexibility to now work at home part of the time. i think that trend is here to stay. i tpi7-■ with all of the continued volatility that we see in the marketplace when it was first covid, it was global supply chain issues,q inflation some of what's going on with banking no7chq th,y consumer dee for emotional connectivity i think is going to remain as well.ok looked into the future, we know this year millions moreok

consumersw3 than of are saying they want to participatee1 aggressively in easterfá with family and friends.qtzq%q to what'sjf imñ/.q9q■ ini] thei lives. and i think that's a trend

if they believe that their dual mandate continues on they should not let the banks have the impact on their mandate. they should stick with what they're doing if they believe that's right. i just said if that's what they believe. i don't think this should be what changes their mind is svb, signature or some of the other banks. >> cme group chairman on what the fed should to this afternoon. he was worked up about the fact that there's no key for what happened at svb so should have managed interest rates better and should have bought more products.,xf÷.o■ >> at the same time there's a

point. there really is. i spoke to one very senior private equity executive over the last couple of weeks and the response was basically, it affects the most vulnerable of americans, you kind of have to battle that problem and make it a huge deal. >> has been very serious about it and doing otherwise would send a different message. it will be an exciting afternoon that will do it for us. now to frank holland and "the halftime report." and welcome to "the halftime report." i am in for the judge, scott wapner. less than two hours away from the most critical fed decision in years. will policymakers stand firm and keep on raising rates or will the dramatic fallout on the banking crisis give them cause to pause? we'll take that to our investment committee. joining us for the hour here at the new york stock exchange liz