good thursday morning. i'm sara eisen with carl quintanilla. setting today's agenda jeff solomon, his warning on the remaining risk in the banking system. the call everyone is talking about the street needham's laura martin on why it makes sense for apple to buy disney. later an exclusive interview with chewy's. meanwhile, s&p and the dow

at highest levels since early march. we continue to lookfor signs o cracking, but holding 4050 on the s&p. the nasdaq at 12,000 and change. that's pretty much an interday high going back to mid-february with the vix not quite the teenager it was earlier. >> we'll start with that, change in sentiment and improving sentiment. according to jpmorgan. a trading note today after yesterday's pricing action, it's beginning to feel the risk/reward of a tactical bounce higher is increasing they say it's not a reason to be bullish but it remains light with room to chase let's bring in cnbc senior markets commentator, mike santoli here on the floor, positioning his light. >> we're up 5% after the shakeup after the silicon valley bank shakeup. what's driving it, semiconductor gives people a little comfort

it's not pure defense that is working right now. i think there is an argument that there's more fear in underpositioning that you can go up higher. seasonally people take assurance april is a good month, a re-election year i think we're in that sort of zone as opposed to -- really, this market has overanticipated the start of a recession a few times, arguably. last june was probably most aggressive stagflation panic october as well. and here we are again with this shakeout from the bank anxiety that maybe got us thinking in that direction again. >> you mentioned the chips, smh. it's almost a 12-month high this morning. have you been impressed with the way in which corporate commentary, there hasn't been a lot, has held up in the wake of the banking stress >> so far for sure in theory we used to think the final year of a quarter has been preannouncement time we haven't had that for a while.

guidance is on the muted side but not falling apart. i think that's true. you have the cost-cutting story line on one side with big tech rationalizing. the rest is, nominal growth still seems okay consumers have not panicked, at least not observably yet it also makes sense, first quarter earnings, we have the gdp numbers tracking pretty well is that going to be the quarter is really resets lower it's hard to know. >> the thing is, nobody knows what the impact of the banking crisis is going to be on the economy. we don't know how severe the lending crunch is going to be. we know it's coming. we know the fed chair is watching it, but it's not going to show up yet, right? >> right. >> because we're going to get a jobs report next week and inflation report in early april. those are the two metrics the fed is watching. >> it's going to be a tight squeeze. i think when you get banks reporting earnings, they'll be incentivized to be liquid, safe, risk-averse and we're not extending a lot of credit and

risk out there that could be a sign of how they expect things to go. i would say you've gotten your bounce in the regional and international banks. it hasn't necessarily been that strong, that convincing. still, you have to check off more boxes here. >> mike, thank you mike santoli let's talk about banking fears svb, credit suisse, those fears may have eased a bit but our next guest says we could be looking at the calm before the storm predicting more issues will arise in the financial sector joining us is td cowen president, jeff solomon, now part of td as cowen company was bought congrats on that what sort of risks are lurking here this doesn't sound like you. >> well, i'm not sure there's a lot of risks i think what we're seeing here -- i agree with your previous comment, sara, the real issue is the slowdown in lending. i think the fed answered the

bell here particularly as it relates to what happened with svb and some of the other banks, be in a position where you can provide liquidity and depositors can get their money when they want their money i don't expect there to be a banking crisis i think the regulators have done a really good job of responding to the situation as it presented itself the real issue is what kind of dampening effect this will have on the economy and whether or not this leads us into a recession. certainly if you're a bank today, you're probably looking at slowing down your lending until you can see how things materialize with the economy. >> what is your feeling on the extent of that slowdown in lending? that's what appears to be the debate here. how severe this crunch is going to be. >> yeah. i mean, again, i just look at it, one of the big lessons that i think everyone has learned here is duration is challenging for regional banks and that's the banking business.

you are to some extent borrowing short and lending longer i'm just speaking from my own experience over time you're definitely concerned much more about lending short -- or lending long and borrowing short. you're going to be a little more, i would say -- a little bit more judicious with your lending. we'll see how that plays out one thing we should be on the lookout for, if there's credit deterioration as a result of that, you'll see banks be a little more cautious. >> jeff, everyone sort of argues banks will need to pay up on their deposit rates to stay competitive and keep people from migrating out to money markets or continuing to do so i'm looking at charts of history. it's not like overall bank deposit rates have chased money market rates over the years. i just wonder how much pressure

you see in that in terms of -- from an earnings standpoint. >> yeah, i'm not in the room on those kind of conversations. i don't have a strong view on that but we've seen these things before what happened here was a liquidity issue and the fed answered the bell on liquidity i don't think depositors have anything to worry about and i don't think there's a lurking bigger crisis on the horizon i think banks will do what they need to do in order to drive their bottom lines at the same time, safety and soundness is really at the center of this if they need to be in a position where -- probably if anything, you'll see a little bit more nuanced pricing, you know, it's been a long time since the curve has given people the opportunity to distinguish between, let's say, overnight rates and maybe three-month cds or six-month cds or one-year cds. if i had any view at all, i think it's you'll see more nuanced pricing to attract deposits to match the duration

the bank wants to see. that will be more interesting for depositors you'll be able to get differentiated pricing on deposits up and down the short end of the curve between zero years and two years. we haven't had that since the global financial crisis because it's been enter interest rates forever. that's probably more likely the case i wouldn't say wholesale you'll see banks chasing. i don't know that that's the case >> jeff, we've been talking about this rally, sort of a surprising rally in the face of all these issues 2% higher for the month on the s&p. 5% for the nasdaq composite. 7% for the nasdaq 100. does it make sense to you, given the intensity of the volatility in the bond market and some of the questions this poses for the economy? >> i think when i was on last, equities put in their low and i was referring specifically to last summer or the third quarter of last year i got a lot of heat from a lot of people who said, you knowings certainly after the svb

situation that, you know, how wrong i must have been of course, i'm sitting there going, i didn't know that was happening when i was on your show - >> you were right for the wrong reasons. >> listen, the equity market is resilient and it's been range bound. since may it's been trading in its range as it tries to figure out a way to grind higher. equities climb a wall of worry there's a lot to be worried about. so, i think, you know, you'll see these opportunities, this is a big relief rally off the back of what happened earlier this month. i think it's merited you're finally starting to see big tech take real action against its cost structure so, people believe that's going to be leading it higher. the market is looking for excuses to rally and i think you're likely to see, even though the fed will continue to talk down inflation, and they will, and that's what you saw sort of with the yellen speech, treasury and what you saw with powell's speech after the 25% -- after the 25 basis

points they'll continue to talk inflation down to the best of their ability. let's be realistic they'll be waiting to see exactly how this whole thing pays out is the likelihood or the probability of a pivot sooner happening? yeah, the probability increased significantly as a result of what happened earlier this month. and equities are always pricing in future cash flows people will get their head around, yeah, we'll have a recession. the fed has to lower rate. what does that mean for my 3 and 5% cash flow probably means there's room to move, right? >> look at what the market is doing on semiconductor cycle trying to get as far out in front of it as they can. one last question about europe some of the inflation data we got this morning, particularly spain, was pretty encouraging. even germany to some degree. i just wonder whether or not you think there is a pivot, do you think it's u.s.-led or europe-led >> i'm not sure i'm smart enough to know that

i do think they're inner linked. and maybe i would have been more confident in years past giving you that answer because i was a globalist or i understand how global interconnectivity worked. we're in the middle of a big deglobalization move i think you'll see central banks act much more, i would say, parochial. we'll be looking at our data here maybe the data in europe is an indication of something, but i don't know we'll necessarily be in a position where our central bank is going to be following the lead of their central banks. they have their own issues in europe that are separate and apart from the united states the united states in and of itself is, again, going to go through what it's going to go through. the fed will act accordingly it's hard to make the case after what just happened and with how far they've come, how quickly they've come in terms of increasing short-term rates that we're not going to have a recession. and how shallow that will be and whether the fed -- the fed has tons of room now to actually

ease in the next recession which it hasn't had since the mid-2000s. the market's like, wow, if we really do hit a recession, then the fed has plenty of room now to actually ease that's a very different place than where we've been in a very long period of time. the market's, again, finding excuses to grind higher. and that's understandable. >> so you stick with your call that you made with us about a month ago that second half is going to be ipo returns? i think you mentioned instacart, fanatic, some big ones you're looking to go public >> i didn't mention any specific names, just to be clear. >> those are ones we're all watching. >> the market would be more open than it has been the last two or three weeks, everybody that was looking to do something put it on pause. we have to get through now another hurdle of people saying, is it safe to come back outside? even though vix has traded

lower, we need to see sustained lower vix numbers in order for people to say, it's safe to launch deals again i don't want to minimize the delay that might have occurred to the knock-on effects as a result of the bank crisis at the beginning of the month all i'm saying is the further away you get from that and the -- the big thing people need to look at is what's going to happen with budget if they can figure out a solve for the budget, vix will end up staying lower if we don't push ourselves to a fiscal cliff. that's the next big event everyone is looking at if people play gamesmanship with that, that could push things up. but over time these things will get resolved and people will need to finance themselves and dot m&a trades and that will start to happen more as we get clarity on some of these things in the third quarter and in the fourth quarter this year is the likely in which you'll see an uptick right now, not much has happened in the first quarter of the year >> that's for sure jeff, thank you. good to talk to you. especially from your new post.

>> yeah, well, i'm up here with our friend jeff sonnenfeld, hoping to sit in his class at yale that's where i am today. >> there you go. well, we know him, too thank you, jeff. appreciate it. >> good to see you could apple and disney team up to dominate streaming needham today says the move could provide as much as a 25% upside for apple shareholders. largely hypothetical, but we will check in with laura martin, the analyst behind today's most talked about note on the street.

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apple, if it buys disney, using shares the combination could drive 15% to 20% upshale for shareholders. laura martin of needham, great to have you back welcome. congratulations on capturing the imagination of the street today. i did wonder when i saw the notes. what's laura up to you're known for making prescriptions on netflix and ads, which eventually happened what's the motivation for this note >> so, i think apple is really doing a very mediocre job of

streaming. they just said they were going to do $1 billion in film finances that's laughable because the companies they're competing with in content business is spending $30 billion a year even netflix is spending $20 billion a year, round numbers. so, the notion that apple is going to spend $2 billion on streaming and $1 billion on films, i think they're starting to get serious what they're realizing is services and hardware, which they've done today, actually do create consumer lock in, but so does content the only content you don't have to license every time you want to use it is if you use the ip, you own the intellectual property guess what walt disney has some of the best characters and film franchises sort of on earth. so own that innperpetuity would lock in their hardware bundles and software so it's not simply a way of

framing what disney is really worth. you're actually making it an argument that it improves apple's business and specifically about disney, right? not just buying ip on the -- off the shelf? >> correct one of the problems with these -- one of the big problems can creating hit content is teams. disney has a team of stars that doesn't overlap the team at marvel or pixar or disney animation, but all of them those four teams are great at compelling storytelling. if you buy the walt disney company, apple gets four storytelling teams with track records second to none >> why do you think shareholders wouldn't have a problem with the complexity of this deal and the balance sheet dilution that would happen for apple >> i think they should issue shares apple trading at six times, disney trading at two times

revenue. the earnings per share would be a antidilutive i think it would be antidilutive to apple shareholders to buy disney because the shares are so much higher value. i should issue shares. so there's no balance sheet tax to shareholders. >> is there any indication that something like this would happen it's fun to speculate and the strategic value for a lot of folks makes sense, but apple doesn't do big deals like this. >> absolutely true in the past, you're right about that. bob iger was quoted in the past as saying, had steve jobs lived, he would have merged with apple because steve jobs was on the disney board and bob iger was on the apple board. there is a long history of these companies working together so even that tells you it made strategic sense back then. >> all that said, laura, what kind of odds would you put on this actually happening, say, in the next two years

>> i would go tree to five if the streaming were teed up, apple has technology one thing we make note of is apple put everyone else out of business in 2011 as its market share gains went from 4% to 24% of iphone sales in the fourth quarter of '22, over a decade. disney has been around 100 years. there will be a point at which apple is threatened by the next new consumer, the metaverse or goggling or glasses. there are a lot of guys gunning for apple's smartphone to replace the smartphone as the next new consumer ecosystem. you know, when apple decides it feels threatened, the best kind of m ochltmoat is a content moa >> they're definitely second movers, that's for sure. history has proven that. really quick, the competitive landscape, i wonder what your take is on netflix and the

budding discussion around m aca -- m&a. >> these losses are enormous you get to lay off a lot of people there's real synergies amongst consolidation with companies like netflix with paramount or -- paramount is too small it needs to go away. it needs to be bought. i expect to see more consolidation. specifically among content companies and up into distribution because those are complimentary networks with content. >> you lit up the street today, laura. we appreciate you coming on. good to check in with you. laura martin at needham. >> thank you up next, brazil and china, inking a deal to ditch the u.s. dollar that straight ahead. we're keeping an eye on walmart. the stock got upgraded to outperform at evercore saying the company is positioned for traffic and rgmain upside.

it's a winner today, up 0.75%. up almost 100 on the dow

just a few minutes left of trading overseas in europe with markets set to close higher there for the fourth straight day in a row retail leading the charge today. shares of h&m up huge after reporting a surprise profit this quarter. the story abroad we wanted to highlight is china three headlines that kind of tie together here. first we learned china and brazil have just made a new trade deal to ditch the u.s. dollar you've also got russia adopting the chinese currency as one of the main currencies for international reserve, trade agreement and bernl panking services then also this deal, the chinese national oil company completing its first lng trade with france's total energy using the

chinese yuan all this alternative currency move from china in the face of deteriorating u.s. relations you hear the rising chorus of the dollar is losing its reserve status we've seen these moves and china is reasserting itself as a dominant global power, which is true in terms of china asserting itself as a force here but what's not true is the dollar losing its reserve, at least any time in the near future because the bottom line is, the chinese yuan makes up 80% of trade it's going to take a really long time the u.s. dollar dominates in global debt, in central bank reserves all the things that make it a reserve currency there is a lot of fear mongering on this issue. i wanted to put some facts behind it, not to mention the fact the chinese currency is not

freely convertible you can't just buy and sell it on a deep open market like the u.s. dollar. >> that said, and i agree with you, but wouldn't you argue the most high-profile in the last few weeks, saudi arabia and russia, are at least an attempt to court the petro dollar. that would be an incremental move. >> they're making no secret their goal here, to decentralize the dollar with trade and that starts and ends with energy, no doubt about it we're watching these deals i'm just highlighting, they are just that. they are incremental and there is no imminent threat of the dollar losing what is one of our most prized possessions, which is the reserve currency. know needs to chill out. >> exactly >> let's get a news update with bertha coombs. >> hey, carl here's what's happening at this hour a train carrying ethanol derailed and caught fire overnight in minnesota prompting evacuation orders for residents living near the crash site the nsf railway said around 22

rail cars derailed near raymond, minnesota, just over 100 miles of minneapolis no injuries were reported and the cause of the derailment is under investigation. house republicans voting today on a bill aimed at increasing energy production the lower energy cost act would increase domestic fossil fuel production and ease permitting restr restrictions the gop says the bill will unleash energy resources while democrats say the bill rewards big oil companies and will contribute greatly to climate change. vice president kamala harris's trip to africa continues with a stop in tanzania the vice president delivered remarks alongside the country's leader and announced plans to introduce trade and investment with the nation. the white house said it would provide over $500 million in assistance in 2024 for the country. sara, back over to you >> bertha, thank you after the break, barclays'

chief economist will be here to lay out his case for why rate hikes isn't over but a credit crunch isn't coming either. charles schwab downgraded the name to equal weight saying there's minimal visibility on multiple variables despite the rating cut they keep the $68 price target, still 23% upside from here schwab is under pressure but has been an overall gainer as financials have stabilized "squawk on the street" will be right back but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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welcome back a couple hours into trading. let's get to the floor and go post to post with bob pisani >> s&p is holding up not far from the highs of the day, but you're right, carl, there's some very interesting sector rotation going on today we've been talking about a little bounce in reits and some of the cyclical names. like at bornato, it hit $13 last week the lowest level since 1995. it bounced back here admittedly, it was $23 a month ago, and bounced 15. very rare you see a reit leading the s&p. again, this sector, at least has stopped dropping and modestly moved to the upside. let me show you some other things here. i mentioned all of these cyclical names, materials and industrials. there's freeport had a very good week overall it was $35 two weeks ago $40 right now. that's been slowly moving up up

among the leaders overall in the last couple of weeks that's a good sign at the same time, we talked about this bank rally, it's starting to fade a little bit. all of the regional banks have in the last hour and a half reversed their gains a little bit. there's m&t bank m&t was moving all week. it was 114 to 124, as high as 124 today. you see all of a sudden it's starting to fade this is true of all the regional key core, truist banks, all the regional banks have been fading in the last hour or so that may be understandable also fading is a modest rally we've seen in some defensive names. for example, bath and body works, for example, smuckers, some consumer names that have been generally up for the week they, too, have been fading in the middle of the morning. clear signs of the rotation. it is tech holding up, reits bouncing off the lows and materials and industrials, a lot of cyclical stocks moving here

again, carl, sector rotation, very good sign as we close out the quarter. back to you. >> bob pisani, thanks. our next argues the recent financial fallout will cause monetary tightening, but doesn't see a credit crunch leading to an all out crisis. joining us, barclays' chief economist, mark giannone i know you have written about deposit outflows happening in waves, this notion of a sleepy depositor that kind of wakes up and sees what's going on and moves around why does that not -- why is it more of a headwind than a hurricane, so to speak >> good morning, carl. thank you very much for having me here. yeah, no, we've seen, of course, the tightening of monetary policy over the past year, but still, despite that, the economy was really -- has remained very resilient. at the beginning of this year. and we -- looking forward we have been anticipating for quite some time a recession taking

place in the second half of this year with the increased tightening in lending conditions and credit conditions that's likely going to result from the recent bank turmoil, we anticipate a little more -- more of a slowdown as part of our forecast later this year but not an all outright financial crisis or collapse of economic activity. >> right so, the concerns about, say, a rolling crisis in commercial real estate, is that part of the lending environment needs to get rolled over, is that not as much of a concern because it's a small percentage of overall lending or walk me through why that's navigable >> it is a featuring tightening in monetary conditions that as interest rates go up, the real estate investment comes down and we've seen, to some extent, residential investments come

down we are seeing a drop -- a big drop in demand for commercial real estate as well, also linked to the pandemic earlier. so, yes, these are going to be areas of stress. but i would say they are part of the tightening in lending conditions we've seen already for some time. if you look at the survey of loan officers we have from the federal reserve, that showed a considerable amount of tightening in lending conditions already starting last summer all the way through early this year so, when we think about the banking turmoil we are facing now, it's an additional increment to that. >> does that cause recessions, that kind of extreme, tighter lending standard >> so, our baseline forecast does have a recession, a mild recession, i should say, as part of the forecast. again, we've been anticipating this prior to the recent turmoil. we think it's likely going to hit the economy in the second half of this year, so we expect some contraction in activity with gdp remaining flat for the

year, you know, with an increase in the first part of the year and then a downturn in the second part of the year. >> so, if you're right, mark, then the market is mispricing all these fed interest rate cuts, isn't it >> well, i would -- i would say that i find it very unlikely for the fed to cut rates or slash rates like the market is expecting, starting in the summer i think if anything, the slowdown is not some random accident hitting the economic activity, it's a result of the fed campaign to raise rate and attempt to slow down the economic activity in order to bring inflation back to the 2% target so, yes, i do think the market, especially the bond market, is a little optimistic in terms of rate cut going forward >> we got this final look at q4

gdp and some consumption revisions were interesting i wonder whether or not we continue to have this debate about whether the consumer is tapped out on goods but is going to keep buying services. is it your -- what will be resilience and what won't? >> well, exactly we had in the bounceback from the covid pandemic, we had a surge in goods, right? goods consumption has been and is still well above the prepandemic trend. services consumption, on the other hand, continues to increase and remains below its prepandemic trend. so, we expect that normalization of the goods versus services to continue and so the rotation away from goods to more services to continue as we go forward yes, we see a very resilient services sector. that shows up in prices. that's where the inflation pressures are and a lot of the inflation pressure are fueled as well again by tight labor

markets that continues to fuel consumption of a broad set of goods and services but especially services now. >> we'll get a peek on that tomorrow with the jobs data. a lot to absorb. good to see you. marc giannoni. sam bankman-fried left the courthouse. >> the charges are piling up these pictures from the courthouse are becoming all too familiar again, he continues to plead not guilty and trial is set for october. >> thank you, guys >> on bail with his parents in their home. strad ahead on the show, the ceo of chewy joins us. that stock falling 8% on earnings laswe bt ekut investors seem to be using that dip as a buying opportunity, rallying nearly double digits since monday don't go away.

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profitability, better growth than expected. what are you seeing in the underlying business right now? >> nice to be here, sara so, we had a tremendous 2022, double digit growth, we took share, record profitability, free cash flow positive, over $100 million, debt-free and guided to continued growth, double digit next year, doubling free cash flow and, you know, continuing to sustain profitability. there's a lot to like here the team continues to execute. and, you know, on the back, we're seeing healthy business momentum we're seeing consumers that are engaged, consumers in health care being pillars of strength and we continue to play through the economy -- or the macro, which is continuing to pressure the discretionary a bit. outside of that, the business is really, really healthy at this point. >> some worry about net active customers, which should decline again this quarter this continues to be one of the major points for some of the

bears in the short. >> on the back of it, sara, if you think about it, we are 21 million -- near 21 million active customers, 19 million households that refresh at a rate of 7% to 9% every year. we like the pace of our growth adds we have been talking for a while here, if you recall, we took in a large number of active customers during the last two years of the pandemic. and, you know, it's just about digesting the math our churn is materially better than any churn we've seen at industry levels. yet, a very small degree of churn happening from a large base of a denominator here takes some time to digest. we're nearly out of our 2020 churn. we're about halfway out of our second half churn for 2021 this year in '23 we've guided to positive active customer growth. so, all of the above, we're super bullish about the future at chewy here. >> you're talking to two hosts who both have pets and love

them, but i'm just thinking about covid bubbles. people talk about e-com bubbles and streaming bubbles. people bought a lot of guitars i wonder if you think there was a covid pet bubble is that the way the industry thinks of it. >> carl, there were a lot of pets adopted during the pandemic at the same time, when you look at a company like chewy, pre-pandemic if you look at our growth on a year over year basis, we were adding 1.2 to $1.6 billion growth pre-pandemic during the peak year of the pandemic, we added an average of $2 billion growth. when you look at the pop on chewy, we got a $500 million pop on a base that was already growing $1.2 billion to $1.5 billion. next year we guided to $1.2 billion. what that tells you is the underlying resilience of the category and on top of that, the strength of chewy, both in terms of acquiring customers but growing share of wallet, i mean,

we're not -- we're not a story of a pandemic winner this is a story of a company that is resilient and growing at a large tam and has a bright future in front of it. we're super happy and bullish about the future and we're happy about serving on nearly 21 million pet parents at this point >> i know you've been making that case for a while, but now there are concerns about the economy and a potential consumer slowdown with all the inflation and the rate shock and these banking issues what portion of the business is health care and food, which would be more staples, right, and which portion is discretionary? what are you seeing in terms of consumers' appetite for especially the discretionary items like toys? >> i love this question. when you look at our sales, over 80% of our sales are consumables and health the consumables and health grew nearly at 18% relative to the 14% overall growth we delivered. secondly, our auto ship

subscription business grew also at an 18% rate, which tells you that customers continue to spend more on the platform so, when we look at the underlying core that signals business and future growth orientation, that's intact in terms of discretionary, makes up less than 20% of our spend. we actually reduced the rate of decline coming into q4 at this point, it's on the back of fundamental macro inputs. when you look at that household formation, that's currently a little bit subdued but expect to start to recover in the back half of this year. we, however, are not building any material acceleration for hard goods this year, and yet we're guiding to a double digit growth year and continuing to take share so, i think, sara, when you focus on the fundamentals, we're fairly robust here. >> the other knock i hear is international expansion. that's great during good times, but of course investors are wondering how expensive that will be and how much that will weigh on margin growth at a time

where so many other e-commerce names and competitors are focusing on expense management and preserving margin. >> so, long-term profitable gr growth is our north star and will continue to be. what that means is under our operating philosophy has been scale the base cost of the business, use the savings and reinvest those for future growth verticals. that's exactly what you're seeing here. we deliver 20 points of scale in 2022 we are essentially scaling in 2023 and we're using up to 50 to 75 basis points off the profit we're generating and reinvesting those profits back into the business for long-term growth. international opens up over $100 billion market tam for us. this is our opportunity to essentially -- you know, we've always believed chewy brand is expencible and pet parents are the same internationally this is going to be a super

disciplined thoughtful, prudent approach over multiyear period where we will sell a bunch of growth and we'll share our results and transparency along the way. >> thank you for joining us to talk through some of the recent concerns and some of the high points as well.well. ceo of chewy >> nice to talk to you, sara >> you, too. when we come back, florida governor desantis accusing disney of pulling a fast one that story is up next. first, though, baba continuing to move higher over the last week reports this morning say that its $20 billion logistics arm gearing up for an o ipin hong kong shares are up nearly 30% in the last two weeks don't go anywhere. you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock-

i wasn't going to say it. ♪♪

we return to this surprise update in the battle of florida governor ron desantis versus disney, and that is the focus of today's "tech check" with jewel gentleman boorstin >> reporter: score one for disney this win in the ongoing battle between disney and florida governor ron desantis. now this new oversight board the governor installed to oversee disney's district accused the previous disney-controlled board of transferring much of the board's power back to disney, back in february that includes veto powers over improvements or changes in the parks. now this is something the new board that ron desantis controls

just discovered. disney sharing a statement with us saying, quote, all agreements signed between disney and the district were appropriate and discussed and approved in open notice public forums in compliance in the sunshine law they just discovered this recently even though it was signed back in february. desantis' office saying, quote, we are pleased the new governor-appointed board have legal firms to conduct audits and investigate past behavior. it sounds like this battle isn't over yet disney's oversight board has been around since the state created a special tax district for the theme park back in 1967. this board has been responsible for approving the likes of infrastructure projects as well as things like trash collection and also major construction. disney opposed florida's so-called don't say gay law.

this has been an ongoing battle. it seems there are other things in play. >> it takes me back when we spoke to michael eisner two weeks ago and said how will this resolve itself he argued it's hard to go up against disney over the long term politically and the company would make some of these florida critics converse >> he said it would not be a good strategy for ron desantis running for president, going after disney he also used to lead the company. >> especially if they take this photo. j.b., sorry. >> reporter: one thing that's interesting, in addition to managing this district and, yes, there are things on infrastructure which disney wants to do, there are costs associated with it disney would rarther carry the cost of its own. does the state want to be responsible for the cost of that as well? >> julia, thank you.

good update. julia boorstin utll street is buzzing abo steph curry's new deal announced with under armour this morning details when we come right back.

wall street buzz, under armour announcing they're going all in on basketball star steph curry signing a new long-term partnership. financial terms not provided, but we are told it's performance based. curry signed with under armour last in 2013, $4 million a year, has done ten signature shoes with ua. as part of the new deal he will be named president of the curry brand and will go beyond working on just basketball and golf, delve into women and youth he'll be tasked with helping to recruit other athletes for the brand. this call is coming as a brand-new ceo takes over just a few weeks ago. under armour's third quarter footwear sales, to put it in perspective, $354 million. analyst john kernan says he's

doubtful the curry business is more than $250 million and for perspective nike's jordan brand had $5 billion in revenue in 2022 it's still small, but clearly, he's an important partner for them, probably their most important, and they're trying to do sort of that jordan brand structure where there are new athletes under that brand and new categories >> that's the gold standard, still is all these years later hanging on to gains here let's get to "the half." carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center the changing sentiment for stocks, big tech continues to run, banking fears easing, and hopes for a fed pause keep growing we'll discuss and debate what that means for your money with the investment committee joining me for the hour today josh brown, stephanie link, bill baruch the s&p 500 near half of a percent. the nasdaq