>> okay. i don't have much time, but it's new and you're recommending it essentially by saying it do you plan on being here for a bit? >> yeah. i bought this at the lows. so unlike some of the others, this is a great buy. value purchase >> good stuff. give me a name >> boeing, production going up >> acceaccenture. >> all right, everybody. i'll see you on "closing bell. "the exchange" is now. ♪ ♪ >> thank you very much, scott. i'm dominic chu in for kelly evans today. here is what is ahead on the show a key fed gauge of inflation shows prices are cooling off, but are they cooling off enough for the fed to hit the brakes on interest rake hikes? our guests say no, they are still on track to hike in may. he tells us what makes him say that and why he's not worried about the bank trade plus, citi not too worried either, giving the usa double

upgrade today and downgrading european stocks. so are u.s. equities the place to be? our market guest says proceed with caution she tells us what she's worried about, and why she's positioning as a result in the way that she is and it's a box office going the way of the blockbuster we look at the changes in the movie landscape and who is best positioned to benefit from it. let's start with today's market they are picking up steam. as you look at what's happening, right now, we are about near session highs. the dow and s&p up nearly 1% at the highs, we were up 290 for the dow industrials. solidly above the 4,000 mark for the s&p 500. 1% gain there is on the nasdaq 146 points to the upside for the composite. it is the end of the quarter, and if things stay the way they are right now, we are on pace

for a decent one the best one since the rise from the pandemic lows. if you look at technology and communication services, arguably two of the most important sectors out there. you couple them with consumer discretionary, 20% gains for tech, 15% for consumer discre discretionary, the three best performing sectors in the s&p 500. on the do yownside, the value td that had so many people bullish last year falling the first part of this year energy down 5.5%, and health care down 5%, as well. those are the leaders and laggards for the stocks powering moves to the upside, it's the technology, consumer discretionary and meta platforms is up 74% just this year alone tesla is up 66%, and nvidia up 89%. some of the mega cap names driving a lot of the market action the latest read on inflation is

helping stocks today and if it's a report that the fed is watching closely, it has to be the pce. steve liesman has the details on why today's read was important and what it means down the line. steve? >> dom, i like what you did there. you did the anchor thing, the reporting thing and then the anchor thing again i hope they're paying you a little extra after a string of disappointments, investors got a little relief on the inflation front, with the fed inflation indicator coming in a tenth below expectations here there the numbers headline up 0.3. and that's half the rate of january, so that was good. the year over year rate, coming down to 5% the january core, a tenth better than expectations. and there is the core, 4.6, ticking down to 4.7. incoming spending, they did come off the blockbuster rates of

january, but they sustained the high levels, so that will be good for gdp ox fard oxford economics doesn't think it will last think they consumers will run out of runway. the trouble for the fed here is that the core is falling only slowly, down less than a percentage point in a year, and the measure watched closely by the fed chair, that core services, that's housing it was unchanged this month at 4.6% so what happens here the economy is still growing, inflation is still high, so the market leans towards that may rate hike, with the probabilities 45/55 for that quarter point hike but it swings back and forth every day. so the banking turmoil continues to be the wild card here even if there aren't major failures, tightening and credit

standards will threaten the economy, and growth and maybe replacing rate hikes i think that could be a lousy tradeoff >> steve, if you look at this on balance, this is not enough for us to change the fed buying whatsoever but is there enough of this in terms of the inflation there to cooling off for folks to be a little more optimistic on what things look like in the economy going forward? the fed rate hikes are supposed to be tapping the brakes on the economy. has the economy cooled off enough to make people feel more optimistic about the coming months for markets and the economy? >> here's the problem with all this, dom. i keep describing this a bit like it's a wrestling match. we're trying to pin down inflation. we keep counting one, two and then the thing gets back up. and that's the way it's been we keep thinking we're making progress, and the january thing was a real, you know, game changer in the sense that not only were the numbers worse than expected, but they have gone

back and they revised up the prior numbers, so the inflation progress we thought we were making has revised away with a couple of swirls of the pen right there. so yes, it's one month but as you know, one month does not a trend make we did have the consumer slowdown this month after blockbuster numbers last month so all i can tell you is we have to wait and see it but a couple good months together remember, powell has said he wants to have substantial evidence that things are going the right way before he changes his tack >> steve, stick around we have a bigger conversation around inflation it may be cooling off, but the next two guests don't expect the fed to take their foot off the gas yet and see another hike perhaps in the cards in may. let's bring in ethan harris, head of global economics after the bank of america global research, and elena is a u.s. economist. thank you both for being here.

steve just laid out the ground work and the context for what we saw in the inflation data this morning. yelena, starting with you. was there anything about it that makes you feel as though the inflation picture is more or less of a threat to the u.s. economy in the coming months >> i think inflation remains a big threat, and a little bit of a cooling is just simply not enough for the fed to stop tightening i mean, took at the report look at the income data. we still have tremendous strength in some to have labor income so look at wages they're still growing. so as long as wages are growing, the economy will be okay and inflation will be really slow to cool down. i think, you know, the latest developments in terms of the banking sector also didn't really alter much what consumers are doing. look at today's data, at the

michigan survey of consumer sentiment. it was not much of an impact there at all so i think the fed is clearly on a path to hike in may, and then they will see how much lending conditions tighten further for them to decide what to do next we do expect them to hike in may. >> ethan, we've been talking, going back 10, 13 years now at various points we have seen different kinds of scenarios play out for the u.s. economy during that time span. but one thing we did see is a near zero interest rate policy for the better part of a decade plus i heard it referred to as a tough line to straddle, the fed, this keeping the economy going and contain the banking prices and everything else. is the fed's job impossible or is it just extremely difficult >> it's difficult but it's certainly not impossible

i think there's a tendency to exaggerate the idea that the feds have its hands tied behind its back they can't deal with both a financial crisis and an inflation problem. but we know that the fed has the right tools to deal with this financial crisis central banks were invented to deal with liquidity problems in the banking system and they've got the right tools. very aggressive attempt to stabilize the challenges in the banking sector and the data suggests it's working. you just got yesterday afternoon, we got data on borrowing from the fed and bank borrowing from the fed dropped a little bit, which is a very good sign when you think you're in the middle of the stress of that the other thing i should point out is that even if the fed doesn't succeed in controlling the panic in the markets, they

can cut interest rates they don't have to just use targeted tools they can walk and chew gum they can focus on the financial stress in the short run, cut interest rates, and then go back to dealing with the inflation problem. the financial issues happen very quickly. inflation fighting is a long-term process. so there's no inconsistency with the fed addressing a financial problem first and inflation problem later. they've done it multiple times in history >> this is a good point. i want to stick with that, because the banking stress issue was not something that was really on the radar until the last month or so it's something the fed can focus solely on inflation. now it has to worry about financial stability. earlier this morning, senator elizabeth warren, an outspoking person with regard to critiquing banks, she talked how she views bank regulations going forward

this is what she had to say. >> banking is about steady profits, to be able to make profits. but when banks load up on risk, they put depositors at risk, they put small businesses at risk and ultimately, as we have learned with these multibillion dollar risks, they put our whole economy at risk. so we have to make a change there. >> got to make a change there, she says ethan, is the banking system and the way it stands right now a risk to the small businesses of this country and the economy of this country >> yeah, i don't want to get into a fight with elizabeth warren here, since i do work at a bank after all you know, the banking system is fundamentally in pretty good health you've got very high capital ratios you've had a lot of stress testing going on at the big banks. you know, what got the

california bank in trouble, sil silicons valley, they had too many bonds in the portfolio. so generally speaking, the banking system is in good health a month from now, we're going to be able to say that with more confidence and i also think that the response of the regulatory authorities, including the feds, has been quite decisive. and ultimately, the economy is going to be strong >> steve, we've got a break between now and may, so to speak, when the next fed interest rate policy meeting is going to happen. what exactly can happen in your mind between now and then to change the story, to change the narrative one way or the other >> you know, the first thing is i think if that credit channel starts to show itself -- of course, we have lousy data on that but if it shows itself, the idea of credit turmoil replacing

interest rate hikes, that's a possi possibility. but dom, i don't work at a bank so i can get in a fight with elizabeth warren >> go ahead. >> i would like to point out the absurdity of the white house and senator warren, figuring out what needs to be done while the fdic and the federal reserve are yet to issue reports on what actually happened and what the problems are it seems like jumping the gun there in terms of doing the fixes. as one of the banking groups said yesterday, it's like ready, fire, aim or something like that they had all this pent up things they wanted done i'm not sure what happened i spent almost every day in the past three weeks, and i have a ton of questions waiting for those reports. that's one the second thing is, when elizabeth warren is talking about, is the world which we

tried to live in, i'm not sure it's been successful the idea that no banks can fail. we have had zero bank failures, and that seems to me to be not necessarily the optimal state of the banking industry some banks are going to mess up. but the question becomes, how much of a safety net there's going to be. and i'm not sure we have answered that question she apparently wants to live in a world where banks are utilities, and that raises the question as to whether or not we're going to have the right amount of risk taking on the part of banks that will fuel innovation and the economy >> all right and yulana, at the end of the day, many viewers want to know what this means for the interest rate policy picture going forward. are we talking about rate cuts if so, are they going to happen this year, next year what is your projection? >> we don't expect rate cuts this year, and i think steve pointed out that it could really

be iddiosyncratic we just came back from the conference where sheila bair was speaking about it. you can let the bank fail and it doesn't mean the system is not good enough. so we expect another rate hike, and we don't expect any cuts until next year. so unless something really systematic, systemic happens to the economy, that would be something of a risk area >> all right thank you all very much for your thoughts v. a nice weekend, guys coming up on the show, your next guest has a few ways to minimize risk. we'll look at some of the opportunities abroad and if you are looking into buying an ev for the new tax credit, you might be in for sticker shock.

we'll break down the new rules for you and those ev credits as we head to break, let's check on the markets again, just near session highs right now. the dow is up 259 points the s&p 500 is up about 1% n "the exchange" is back after this i count on personalized financial advice from my ameriprise advisor. she knows my goals and can help me reach them with confidence. the markets may fluctuate but you're still on track. more than 9 out of 10 clients are likely to recommend us. ameriprise financial. ♪ ♪ a cyber-attack can grind everything to a halt.

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welcome back to "the exchange." stocks are in rally mode right now, on pace for a positive month. according to cnbc's latest drivering investor survey, which polls investors, strategists, and our own cnbc contributors, 68% fear the s&p 500 has more room to fall our next guest says the market's price action continues to defy the ever-growing wall of worry joining me now is quincey crosby, chief global strategist. quincy, a pleasure to have you here, and to bring those insigts. i think the saying goes, markets climb the wall of worry. so should we be worried about a wall of worry or should we be climbing it? >> the market has certainly been climbing it, but you can't dismiss the fact that the market

has to face, for example, you know, operating margins being affected by higher wages we heard that in the previous segment, with the revenue backdrop that is going to slow even as the margin is going to slow you also have at the same time, you have an issue in the market where perhaps we see credit conditions tightening more, but the stress in terms of borrowing, the large cap names are not going to have any problem. but smaller businesses will, and so will the consumer that could lead to even more strain in terms of the market. you know, the first quarter earnings season is going to be very interesting we're going to pay very close attention to what they tell us guidance is most important our operating margins are coming down at a pace in which they are going to be forced to lay off more workers so far, it's been minimal.

yeah, we have had tech layoffs we've had culling within the financial sector but basically, we haven't had major layoffs. if that starts to happen, in order for them to meet their bottom line, you're going to see the consumer slowing down, and that starts to add to that wall of worry but so far, price action has won. and you can't dismiss it still, the treasury market, the yield curve is telling us, don't get so, you know, full of yourself we're still here, we still see a recession. >> quincy, i mean, the price action has been behaving or trending that way for months >> yes >> so those indicators and the market have been wrong up until this point >> right >> the economy has not fallen into a recession, and a lot of people calling for that are starting to temper expectations and saying a soft landing is possible that wasn't the narrative six to nine months ago, it is now so what in your mind has changed?

>> what's changed is the resilience of the companies. every quarter that we have been almost the last year, you had all of these expectations that it's going to be dire. it hasn't been stellar, but it hasn't been dire in addition, all you need, and we have deaseen it happen, wher companies come in with weaker expectations the market has forgiven. and so that's been where we have muddled through. yet at the same time, we have had some companies come in and beat on the top line, the bottom line, and in terms of guidance it's been pretty astounding, especially given the concern that we have had going into the various earnings seasons the companies have gotten through, call it a muddle through. but i'll take that over a complete downturn. >> quincy, i want you to stick around we're going to layer another part to this story here. this wall of worry is casting a

shadow on stocks here in the u.s., for the most part. should investors be looking to overseas markets for better returns? they have been outperforming here is more on that story >> dom, this is the chart that global investors have been focusing on, the diver intelligence and financial stocks this margin is the widest we have seen in years, despite the collapse of credit suisse and the ongoing concerns around deutsche bank. 60% of europe's outperformance is driven by financials and a stronger euro. and with germany and france up 14% to 15% so far this year, analysts are saying that the run is overdone, downgrading europe from moutual to overweight and remaining overweight on china, betting on a second half recovery we got better than expected economic data from china this morning. back to china, news of alibaba,

it could help regulators pin point their concerns to specific businesses these stocks are on track for their best week since early january. haik a look at alibaba, up 18% the events that could drive sentiment in april the beginning of earnings season, in two weeks, first republic on the 13th of april, jpmorgan on the 14th the next jobs report will be looking for signs of slowdown in the u.s. economy, and the potential meeting between senator kevin mccarthy and taiwan's leader. in 2022, when nancy pelosi took that surprise visit to taiwan, we saw down trends on the emerging market. >> house speaker meeting with the taiwan president quincy, let's talk about whether or not those opportunities in overseas

markets do now overshadow or are taking a back seat to what is happening with the u.s >> well, you know, we have been talking about developed markets looking very attractive for a number of reasons. one is particularly in europe. today, we have a really good report in terms of inflation coming down. although we expect to see another rate hike from the european central bank. but the other aspect of it is, that the european economies have gotten through the winter. obviously, they were helped by a warmer climate but they have the supplies the supplies came in and also china has helped. it's interesting that if you looked at the charts, what you would see is that once it looked as if china was going to open, once they were going to get rid of the lockdowns, you started to see money going into the european markets and why? because they have very tight trading relations with china

more so than the u.s., by the way. so that also helps but overall, we look at the developed markets. they are attractive. and we complemented that with the u.s. the u.s. is part of the global markets, by the way. and we still see the first quarter actually pretty attractive april especially for the u.s it tends to be a good month for the dow. it tends to be a good month across the board again, absence, another downdraft because of the pocket of the economy blowing up. the same conditions that created silicon valley bank, those conditions are there, and they are the underpinning of the financial infrastructure we're paying attention to real estate and private equity. and also the venture capital that was to intrinsic for silicon valley bank, that's not

the only thing the question is whether or not we can get through and not see a blowup, and maybe it will just be a slow progression. but it's there, and markets are focused on it. >> all right part of that upgrade, the double upgrade of the u.s. markets by citi was predicated on this idea that in times of an earnings recession, the u.s. markets tend to be a little more defensive. they don't tend to fall by as much in terms of earnings recession markets. does that then suggest maybe that we're due for a bit of a bumpy road ahead for the su.s. >> it very well could be europe is trading at a discount to the s&p 500, as are emerging markets. so how valuations play into this discussion around where stocks go in april and may will be interesting. and then on china specifically, looking to not just the economic data whether this recovery can

be confirmed or not. but when you have two major tech giants taking these aggressive moves to restructure their businesses, how that could drive not just sentiment, but there have been talks that these two companies, as they spin off certain businesses, that they will go public and a number of companies separately have filed applications with hong kong separately so do we seize the resurrection of the ipo markets that will be something to watch. >> thank you both very much. coming up, the box office being called a winner take all affair can theaters do anything to change the story or is it full stream ahead as take a look at the dow, with intel leading the blue chips yet again. the chip stocks continue to show momentum here. just aanul hdf in the red right now. travelers, amgen

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the all-new, all-electric eqs suv from mercedes-benz. see your dealer for exceptional offers on mercedes-benz electric vehicles. welcome back to "the exchange," everybody i'm tyler mathisen a group of protestors have gathered outside of trump tower in manhattan to call for the former president's arrest. nbc news reports that donald trump faces 30 counts of fraud-related charges in new york city in connection with hush money that he allegedly paid to cover up sexual affairs. today marks the 28th anniversary of the tragic murder of the grammy award winning singer, who was just 23 years old at the time of her death

she was known to me as the keen of the music, and became one of the best-known mexican-american entertainers she was shot and killed by the president of her fan club at a hotel in texas finland has been cleared to join nato. finland and sweden have long held a policy of not joining nato but that changed when russia joined ukraine. back to you, dom >> thank you very much for those headlines. still ahead, the treasury department out with new tax incentives for ev battery production we look at what is being offered, who it applies to, and whether it will help boost ev battery production here in america. back after this.

welcome back to "the exchange." the treasury department just out with new tax incentives for ev battery production, a market dominated by one country right now, that's china. phil lebeau has the details and whether this could be the long-awaited boost to ev battery production here in america phil >> it will be, dom, no doubt about that the question is how quickly will we see that production, not just

of battery packs, battery cells, but battery components here are the new ev tax incentives that go into effect on april 18th. remember, the most you can get is $7500 if built here in the u.s. but it comes down to the battery. 40% of the value of the critical minerals in that battery are processed or sourced in north america or free trade countries, if that happens, then you get 3750 then it ramps up to 80% by 2027. the other part of this, it comes down to the battery components talking about copper coil, et cetera if 50% of the value of those battery components are coming from the u.s. or a free trade country, you will get another $3750, ramping up to 100% by 2029 what is the real implication in terms of how many vehicles, that's what we are talking about, will qualify for the full

$7500 or even $3750? we'll see a hit in the number of vehicles that can get that that may impact ev sales, at least in the near term maybe in the next year, year and a half because so many vehicle also not qualify. so much is sourced in china, still sourced or processed in china. and then the battery component, while there is some coming from here, a lot is still coming from china. though when you look at something like tesla, as you look at shares of tesla, which will report its deliveries for the first quarter over the weekend, tesla gets the most valuable part of the battery cell, that comes from a supplier in japan so tesla is likely to have at least $3750 still alied to its vehicles all of the automakers are figuring it out. by april 18th, we will know what vehicles will still qualify for either $3750 or $7500. >> of course, that's tax day here in america, april 18th this

year, the significance there phil, stay with us let's bring in an analyst. george, as phil mentioned, tesla is dominating ev sales in the u.s. that stock is the best performing stock in the consumer discretionary sector you have a buy on the stock. do you see these new rules as the treasury lays them out as a catalyst for tesla and maybe the ev producers writ large, the sector as a whole from here? >> look, i firmly believe that tesla has done the treasury's job for it remember earlier this year, they cut prices materially across the board that spurred demand. they had seen a weakening at the end of 2022, and they're able to maintain their margins at at least 20%. so through innovation and constant cost cutting, tesla has spurred market demand through

price reductions so that's why they're the leader in the space and why they will maintain market share throughout the year as a matter of fact, we pulled some data from china together from q1, and as far as we can tell, the chinese auto and ev market has weakened materially but tesla has -- could be up sequentially in china, which would be an incredible feat. that is on the back of price cuts, which led them potentially to increase market share in q1 >> george, i guess i'm curious from a bigger picture macro perspective as you lay out the case for evs here in america at least, how important are tax credits to the growth story of the u.s. ev makers, or north american based ev makers, opposed to those coming out of china? the reason i ask is it appears as though china's ev manufacturing is rivalling u.s. ev manufacturing, and is that a

spur of demand because of these tax credits, or do they largely not factor into the global story for many of these makers >> i think they matter a lot they obviously matter for tesla too, because tesla has been able to bring down their prices, and they haven't had the benefit of the $7500 for a couple of years at least but to answer your question directly, these tax credits are important. what the government is trying to do is balance spurring the demand for electric vehicles, while compelling companies to bring back production of batteries, cells, and components to the united states so they are important. today's guidance was expected. there's some nuances around which countries are in the free trade agreement, which countries we can't use in terms of being able to use the ev tax credit. but at the end of the day, this creates a balance between spurring ev demabldnd and

compelling companies to bring production back to the united states >> you seem fairly certain that this tax credit new information is going to change the production environment in america for ev batteries and everything else. i wonder if you take a look at the stories you have laid out, take a look at these how does the u.s. ev adoption picture now change, and at tesla we know who will be a beneficiary, how much does it trickle down to the smaller makers that are not tesla? >> each have unique situations it comes down to, as they ramp up production, the first ones that are being built are coming out of europe, they're not going to qualify for any of these ev tax incentives when they start building in northeast ohio, they will qualify depending on how they source the battery cells there with lucid, these are speaks

above the price range. can they bring down the prices where they qualify and rivan, some of those models qualify, others do not this comes down to lowering the price on those vehicles. overall, i would say this about these ev tax incentives, they are designed to push the industry to do more manufacturing of battery cells, battery packs, and evs overall here in the united states. i think everybody agrees, that will happen. it's already happening with the plans going into operation over the next several years it's just going to take some time to see that filter through. and in the meantime, over the next year, year and a half, the number of vehicles that qualify for ev tax incentives, whether it's $3750 or $7500, it might be constrained, if you will but it is expected to ramp up, at least that's the hope of the biden administration, once you get past this year and into next year >> on shoring efforts, one of

the key growth industries in the next 40, 50 years, arguably. thank you both very much have a nice weekend, guys. >> thank you still ahead on the show, a new development in the norfolk oruthern train derailment sty in ohio. the stock is down more than 14%, just so far this quarter we're back after this.

welcome back to "the exchange." check out shares of norfolk southern, up 1.5% in today's session so far now up about 1%. this is all despite a doj filing a lawsuit against the company today over the ohio train derailment in east palestine morgan brennan is here with the bratest on that story. this has been an overhang for norfolk southern and what is the latest here now this >> so this is the next step in this evolving situation. the doj is suing norfolk southern for the february train derailment, seeking damages for allegedly clean water act violations it says in the 28-page come payment, "plaintiff, united

states of the america, asks the defendants accountable for polluting the nation's waterways and ensures it plays the full cost of the environmental cleanup. this is a civil suit, not a criminal suit. but based on conversations i've had with industry experts, this action still seems to be a rare one by the federal government. norfolk southern responding, our job right now is to make progress every day cleaning up the site and assisting residents whose lives have been impacted and investing in the future of east palestine we are working with urgency at the direction of the u.s. epa and making daily progress. this is something the ceo has been saying. he said in my interview with him, as well as during testimony in two recent congressional hearings, so far more than 9.4 million gallons of impacted

water, 13,000 tons of soil have been removed and financial commitment by the railroad has totaled $28 million and counting norfolk is facing a lawsuit from the state of ohio, a nur flurry class action lawsuits. but shares of norfolk southern are trading higher today but since the start of the year, down 14% and since this february 3rd derailment, they're down about 18%. >> i guess maybe the point of all this, morgan, is americans want to know if this is going to change behavior? are trains and rail operators going to be safer going forward because of these actions >> i mean, that is always the hope i don't think there's ever a situation in which a freight railroad, norfolk southern or otherwise, is -- derailment is not good for anybody accidents are not good for anybody. if you look at the data historically, the data has been showing more safety -- a better safety record. that being said, in the wake of

this accident, you do have a very bipartisan push now for more rail safety regulations you had a bill proposed a couple of weeks ago that was very much in focus when the ceo of norfolk southern testified before the commerce commity early this month, which is the lawmakers that regulate the railway. and they are trying to move past this and learn from the lessons of the situation, which by the way, the investigation is still ongoing in terms of all the details and the things that went wrong for this to transpire this the first place. >> morgan, thank you very much still ahead on the show, what's behind the box office e sw thaner could be behind this curtain. it's virtual, but we'll pull back the curtain and show you what is behind it after this break. keep it right here ♪ ♪when the day that lies ahead of me♪

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welcome back to "the exchange." we have a slew of topics to focus on in the streaming and box office front today next week marks the anniversary of warner brothers and discovery

merger that's the best performer in the first quarter, up 60%. netflix is up 15% and disney is up about 14% now, speaking of netflix, two of its top film executives are leaving the company amid its restructuring plan the box office still front and center for investors with a number of wide release films down by over 60, 6-0%. so here to break it all down is doug kroitz, dana, and our very own sara witten, cnbc entertainment and media reporter as well. thank all of you for being here right now. doug, we'll start with you macro-wise, is this a scenario where we can say that the box office is getting healthier or do we still have secular headwinds and the paradigm change will last for decades to come based on what we've done at home over the last three years

>> well, it's certainly gotten better relative to where it was in 2020, 2021. we're just now getting back to what looks like kind of a full theatrical schedule. last year the major studios released a little over 70 films. that was down from over 100 pre-pandemic this year it looks like we'll get a little over 90 and most of that remaining gap is fox isn't making as many films after being acquired by disney last year box office released film was down 10% from pre-pandemic which doesn't sound so bad but it's not clear to us with the output scaling up, you'll see box office scale up with it. and that's potentially for the studios that have films that don't perform well we've seen a few films each quarter manage not to do well. >> dan, this is interesting. from my perspective, i love going to movies. i only go to them when they're

bloc blockbusters i can wait for some of the dramas and rom-coms and watch them at home but i'd go watch marvel movies or big nbc universal flicks that have a lot of special effects and that sort of thing i haven't seen as many of those as i recall having seen prepif pan prepandemic. are they not there as much as they have been in the past >> i think they're still performing post-pandemic if we look at "top gun maverick," "avatar," these three films were released after the pandemic so if we're talking about individual tent poles, the big blockbuster movies, they're still coming out and are big global events. part of the discussion we're trying to figure out is what happens between those tent poles. what is going to happen within

those periods where the market doesn't have a big blockbuster spectacle and that's the big question hollywood is trying to answer. >> sara, from a reporter standpoint are there studios that are generating more buzz in your world, and what companies are those? >> absolutely. as you mentioned, marvel that's going to be disney. and then you also have warner brothers which has the dc franchises and universal, which is our parent company that will have fast ten this year. then you have paramount coming out with "dungeons & dragons." but some of the smaller studios are also putting out a lot of product which is important as well not every movie needs to make $100 million at the box office like "a man called otto," "megan," it's all adding up. we just need more titles to get more ticket sales. >> so, daniel, we've got a few

moments left here. what entertainment company has you most excited about 2023? >> i think paramount is probably the most interesting company going into this year after the great success that they had last year balancing their streaming strategy with paramount plus with a strategy with "top gun. we've seen it with movies assayas, sara said, they don't need to make $100 million. but it's going to be one of the best performers in that franchise. "dungeons & dragons" isn't going to be a home run but sometimes all you need is a double or triple. >> doug, we'll give you the last word top pick, most exciting name for you? >> warner. i i think that they have a turn-around under way being differently managed by at&t for three years. i think warner brothers discovery management has a really good plan going both from

a financial perspective and strategy perspective i really like the hire into run dc i think that was an out of the box thinking move that could pay dividends. >> doug, daniel, sarah, thank you all. have a nice weekend. that does it for us here on "the exchange. don't go anywhere because tyler and contessa are getting ready for "power bunch." you see them right there can they wave? they're waving to me keep it right here we'll see you on monday. kelly is back. have a nice weekend. ♪♪ choosing miracle-ear was a great decision.

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