- in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply. we have hired across all departments, engineering, marketing, hardware, field techs. you can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com try it for free at ziprecruiter.com welcome to "power lunch," everybody. welcome back, kelly evans, by the way. >> thank you >> i'm tyler mathisen. coming up, a busy week for the markets on the economic front with the cpi and retail sales. but also earnings season kicking off for a lot of the big banks what you need to watch for and what you should be doing with your money ahead of all that

>> plus, franchise fatigue at the box office disney announcing three more "star wars" movies while also angering fans with celebrity cameos on "the mandalorian." but super mario's just cleaned up at the box office do moviegoers just want something different but still familiar we'll discuss that, get a check on the stocks reacting and first, though, a check on the markets. with the dow up by 30 points, it turned positive just in the last hour or two. the s&p still down 7 the nasdaq down 45 small caps leading the way up 2/3 of 1% today. >> for a closer look at what's driving the markets today let's go to christina partsinevelos at nasdaq hi, kristina >> hi. well, i'll start with nasdaq because it's taking the biggest hit today. tech stocks are down on concerns the federal reserve is just going to have to keep hiking interest rates after last friday's jobs report showed a pretty resilient labor market. tesla, though, let's talk about that company down about 1% lower after the ev maker lowered the price of its cars for the fifth time in the united states since january. this has investors worried, of

course, if tesla's profit margins -- you can see shares down about 2/3 of a percent right now. apple selling off on weak worldwide computer shipments that fell over 40% year over year in q1 of this year. that's according to research firm idc that means that just apple alone is shedding roughly 30 points off the nasdaq mega cap tech names like microsoft, google, amazon also all lower. alphabet down 2% and part of the reason the s&p and nasdaq are in the red, given the weight of these mega cap names. big winners, though. it's not all bad today you've got memory chip makers micron and western digital after competitor samsung said it would cut production, so less competition is good for these u.s. names but i'll explain all of that dynamic in less than ten minutes in our tech check update guys >> all right thank you very much, kristina. it's now time for our weekly look ahead with link he has a lot to discuss on the economy and earnings and let's do it with stephanie link, chief investment strategist and portfolio manager at hightower

as well as a cnbc contributor. stephanie, always good to have you with us. we'll get to some of the stocks you have your eye on some of the companies that report in just a minute. but let's look at economic data first. what do you have your eyes on over the next week or ten days >> it's great to see you, tyler. yeah, look, i think the cpi, everyone's talking about it. that's the biggest number of the weak i think economically. we're probably looking at 5.2% headline year-over-year number 5.6% core. we get the ppi number, which the month over month number is going to be okay maybe .2%, .3% month over month but up about 4% year over year and that would be an acceleration from last month and of course we get retail sales as well. we've got to get through a lot of data. and then we deal with earnings >> let's talk about earnings overall and then we'll get maybe to some specifics. what do you think the overall number is going to be?

you hear people saying maybe 5% down from last year is where things are going to settle out with some concerns about the level of specificity or the ability of companies to provide really precise and accurate guidance >> it's going to be tough, tyler. i mean, i do think at the end of the day we're going to do better than down 5% i think margins are going to hold up better than expected i think companies that have done a really good job at cost cutting, restructuring, pricing power, supply chains have eased a bit. i also think the weaker dollar's going to help. but overall it's going to be about demand and i think you're going to have some sectors that see pretty good demand and others that not so much. so i think you're going to see a little bit better on the earnings front, and i think for the rest of the year i think the expectation is for down zero -- excuse me, down 2 to 0%. that also might have upside as we kind of lapse really difficult compares and get into the back half of the year. >> so many different kind of nuggets to highlight, stephanie. semiconductors, those earnings

are expected to be down quite substantially. the profit margins too but obviously the stocks are just flying as a result of that. this week we obviously on friday get the big banks. we get unh, bertha coombs pointing out we can't overlook the importance there just maybe less cyclical indicator. what to you is going to capture your attention >> well, i think the setup, kelly, for technology is not great just given the news. remember, last year technology was down 28% the xlk, down 28%. com services down 38%. and then we've seen a reversal this year. and so far the xlk is up 19% and the xlc, the com services, is up about 22%. so they've had a nice recovery they're still down from a year ago levels, many stocks. but you have some moves that i've never seen. i mean, i own meta, as you know, and i was suffering with it last year, but it's up 73% year to date i had to take some profits, right? that's just the prudent thing to do nvidia, same thing

i don't own nvidia but a lot of the semiconductors so the problem here is i think that there are a lot of pockets within tech that are kind of messy. right? software you get recurring revenue, you get strong free cash flow, you get pretty decent margins. on the other hand, you have very high valuations. semis we're working through inventory issues you just heard kristina talking about taiwan semi. and that is a problem because the inventories are so high. taiwan semi had total revenues down 11% in march just from february, from february to march. the inventory problems are still plaguing them. and we have to get through that. we're getting close. but we've got to get through it. and the valuations thankfully are cheaper. then of course you've got hardware apple, the news was really staggering in terms of total revenue shipments down 40% and the industry from idc in pcs down 29% tough setups still some challenges. eventually we'll work through it but i think you've got to be very careful in tech >> let's close with a thought on the banks.

couple of the big ones out later this week. jpmorgan and wlells fargo are they cashing in where the regional and smaller banks are kind of losing it? >> i definitely think so first and foremost jpmorgan we always want to hear about macro. dimon has been speaking all throughout the quarter so it hasn't been surprising we'll get macro, we'll get deposit information. we'll see what they're seeing in share gains. we know they grew deposits 50% higher than 2019 levels last year so i think that's only going to get better you have to get through their guidance net interest income, 73, 74 billion. that's the guide expenses 81 billion. wells fargo it's going to be all about expenses can they actually do better than 50.2 billion this year i think they can it's a cost-cutting story, a restructuring story. both stocks are cheap relative to their historical levels i'm long wells fargo >> thank you, stephanie. we'll see you later this week, i'm sure, somewhere on cnbc. fantastic. stephanie link

>> let's turn to a part of the market that's definitely been working lately, and it's actually mcdonald's. the shares are trading at all-time highs after undertaking those corporate layoffs and embarking on a host of cost-cutting initiatives our next guest is still bullish as the shares push toward 300. let's bring in ubs analysis dennis geiger who has a 3.5 price target on the stock. dennis, welcome, thanks for joining us >> thanks for having me. >> give us some context here if things are going so great for mcdonald's why are he this laying off so many people and doing all this restructuring >> yeah, so i think this has been the plan, right to sort of make some adjustments where there are redundancies, allow the company to sort of move faster, move with greater urgency and be able to reinvest some of those redundancies to accelerate growth going forward. i think that's the plan. that's the strategy that you're seeing here. and i think they're not resting on their laurels, right? it's been a terrific last several years from a growth perspective. and i think they're continuing to push that envelope and accelerate growth going forward over the next several years. >> so is it proactive, in other

words? most people if their stock is sitting at all-time highs just sit pretty why do you think they're undertaking all of this now? >> yeah, i think we're going to hear more details at an investor event later on in 2023 where they're going to lay out the plan to reaccelerate or to accelerate global store growth, which has already been about 3 1/2% to 4% as a target i think we're going to go higher than that. and i think we're going to see some head dmount areas that allow them to accelerate that growth both in the u.s. as well as globally. and i think you're seeing some of those moves on april 3rd where they look to kind of go from more of a regional model to more of a centralized model. and i think that's worked in recent years as the company's made some of those decisions so look for that growth to accelerate and we'll have more details on that over the coming months >> how important do you think the use of mobile devices is for mcdonald's in powering that same-store sales growth? and i noticed one thing in there, that they're now going to be able to know when you get within sort of three minutes of the location where your pickup

is going to be they're going to be able to bang, have it really ready for you when you get there that does feel really smart. >> yeah, look, digital and mobile has been huge, both in the u.s. and on a global basis some of the top markets, over 30% of sales are digital at this point. has been huge for the u.s. you talk about that ready on arrival initiative that's starting to roll out across the u.s. and will do so over the first half of 2023 that's going to increase the customer experience. now we can order, instead of getting there and pushing a button to start the order, we'll get there and the food will be ready for you. so it's going to really enhance the customer experience and it's going to improve operations and improve through-put which should help with traffic and sales. we see this as a win-win we like mcdonald's focus and investment on digital technology and we think we're going to see a lot more of this over the coming quarters and coming years. >> what's the context across your coverage universe you have a lot of the names in

fast casual, fast food would you say mcdonald's is a standout or how's the rest of the space doing? >> yeah, mcdonald's from a fundamental perspective and from a stock perspective over the last few years, i think you'd be hard pressed to find a better restaurant from a growth perspective, from a consistency perspective and from a stock perspective. and mcdonald's, we continue to like it. we think it continues to work as a defensive name in a tough macro but one that also allows you to play offense given the growth that we're talking about and given the potential to accelerate that growth so we like mcdonald's, ton like it from here even at or near all-time highs we likium a lot, another defensive high-quality name that's got valuation upsaid. and chipotle's another one we really like a lot. sales momentum looks strong. unit growth looks compelling and we think marge sinz are going to look better over the balance of this year and next those are three higher quality names with a little bit of a defensive skew that should work well in this environment >> dennis, we'll leave it there.

thank you so much. now we're all starving dennis geiger from ubs, we appreciate it. some headlines coming out of the treasury department right now. and kayla tausche has it >> you can pronounce it any way you want to, tyler they're both accurate. later this week in washington the imf world bank meet rgz going to kick off and the treasury department is previewing how secretary yellen will be approaching those meetings and what she plans to say to her global counterparts a senior treasury official says she's going to be reaffirming the resilience of the u.s. economy and affirming the soundness of the banking system and that the banking crisis that we saw in recent weeks will not be dominating the conversation here in washington, that there will be no coordinated plan for new regulation floated by secretary yellen and her counterparts but that really the conversation is going to be about the macro economy and the prospect for growth. this official noting that the forecast for 2023 is much more upbeat than even it was six months ago when these meetings

took place back in october 2022 and the conversation was largely about the possibility of the economy going into a recession secretary yellen is also expected to talk a lot about more reforms coming for the world bank under new leadership. as for meetings she's going to be taking specificationly with cou counterparts from china, this treasury official would not comment on whether secretary yellen would in fact be meeting with any of those counterparts, but of course we could learn more later this week and we could learn more even tomorrow, tyler and kelly, with secretary yellen holding a press conference tomorrow morning. >> good point. kayla, thank you very much kayla tausche with the latest there. coming up, apple lower after pc shipments fall you heard what stephanie said. we're talking about a 40% drop year on year but the shares are only down 2%. and micron, a huge gain on a big move over at samsung we'll explain it all in tech check. and shares of pioneer natural resources are soaring on reports exxon is interesting in a buyout they're up 6% while exxon's only fractionally lower we'll get our traders' take on

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huh? what a time to be alive. introducing the next generation 10g network. only from xfinity. the future starts now. today's tech check the topic today, demand for computers and the chips that go inside them. steve kovach and kristina partsinevelos joining us steve, let's start with you and why apple is cratering today >> yeah. let's talk about that.

it's about the broader pc demand, though it fell dramatically the first quarter of this year now, according to a new report from research firm idc which we've been talking about all day the bug number in that report, pc shipments are down 29% year on year for the first quarter but even worse, it was for apple. mac sales down 40% on the quarter. even though it launched new macs just this january. who knows how much worse that would have been if those new models hadn't come out this is the same trend we've been seeing since last summer, guys pc demand has collapsed after growing like gangbusters early on in the pandemic apple, for example, was setting new mac sales records pretty much every quarter for nearly two years straight and that all came to a screeching halt. for example, last quarter mac sales collapsed 29% year over year and this report impacts other suppliers like intel, amd, and it's a bad sign for microsoft's windows licensing business but apple is less reliant on pc sales, which is why shares aren't down as much.

the iphone is still the most important product. more than 50% of its sales come out of that. we'll get earnings on may 4th, by the way, to see if it was able to maintain demand for the iphone into this year after all those production problems last fall, guys >> and speaking of pandemic unwind, steechl, stay there. let's get the chipmaker side of the story the miriam side from kristina partsinevelos where we're seeing pullbacks there as well >>er, pullbacks overall but let's talk about the uptick in micron and wernt digital soaring above 8% and that's because competitor samsung like you said pulling back posting its worst quarterly profit since 2009 on slow global growth as well as less demand post-covid samsung also surprised investors by cutting short-term production plans, something it's pretty much resisted to do compared to its competitors like micron over the last year or so. if samsung cuts productions, that could help level out supply and demand within the memory market and allow firms like micron and western digital to step in to fill the gaps

but it's not all rosy for the sector the largest chip contractor in the world, taiwan semiconductors, posted its first monthly revenue drop in almost four years you could see that just on the right side of your screen, that dramatic drop right there. and it shows us not immune to weaker electronics demand. the results are not only dragging down tsm shares but intel as well. two points to keep in mind with this report. if tsmc business continues to so much that could weigh on capex plans, creating another headwind for semi-cap equipment makers like aslm, lamb, applied materials. secondly, it questions whether the run-up in chip stocks like the smh up 26% year to date. nvidia almost 88% year to date if that's warranted if the demand simply isn't there. >> a couple of questions for both of you. steve, let me begin with you the falloff in pc demand was more striking among apple computers than generally any hypothesis as to why that is >> a couple things

so they haven't had a big new model. they've refreshed their mac line early on in the pandemic for the first two years. so there was that. these brand new computers and new designs. there's new chips we keep talking about, the m chips so they kind of got through that transition to their own chips, their own new designs. and that's when everyone bought them the comps are just really bad. there's the pandemic boom on top of the fact they put out these really enticing and really good new pcs that everyone just kind of snapped up in 2020 and 2021 and then they didn't need to buy them anymore because there wasn't anything new to buy basically. so that's part of it >> have manufacturers in the classic pc world, i.e. non-apple world, have they come out with new refreshed models -- >> dell just came out with a really nice one i think this week or last week. the reviews just hit so new things are coming out and to be clear, they put out -- apple put out new models of the mac in january, but that was just a little speed bump necessarily. it's not a brand new design or brand new chip or anything

that's going to move things significantly. that's what we're looking at you've also got to keep in mind one more point when apple reports mac sales they do it on a dollar basis we're talking about shipments of actual computers so just because they're saying 40% down here, even if they are right, doesn't necessarily mean that's what the mac business is going to look like >> totally it might be fair to say apple probably did better than the market during the pandemic boom but then it's underperformed -- >> we talked so long how they're immune to some of these macro headwinds. >> exactly. >> kristina, in terms of what to do on the chip and memory side it seems like investors are just rewarding samsung and micron and the universe for saying listen, this pullback is healthy and necessary in order to get things back in line, even maybe there's kind of the same story for taiwan semi. this is a bit of a game of waiting it out until things improve to some extent >> it seems like everyone's guessing that maybe the bottom is in given samsung has finally pulled the cord and decided to cut production we've seen this with a lot of

chipmakers, which i guess is investors' way of warranting the run-up but if the demand still isn't there, even with apple, right? apple is tsmc's biggest client yes, tsmc is going to benefit from apple's iphone 15 and the smaller chips, the three nanometers that are going to be in there but the fact that tsmc's march month showed a decline in sales, what does that mean for apple the likes of tons of other companies that use tsmc products going into q2? so it could be a little premature to react and call the bottom just yet but we're constantly seeing that in the chip sector. >> yeah. >> kristina, thanks very much. steve, thank you as well >> thank you >> coming up, rising risks coral reefs dying at an alarming rate risking not only the ocean life that depends on them but the local economies as well. plus a crypto conundrum. crypto exchange binance losing its key banking partner signature. but now it reportedly can't find a new bank to hold its customers' cash. we'll discuss when "power lunch" returns.

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nasdaq's up 16% today -- year to date it is trying to go green today right now it's only down by about .2%. let's get to bob pisani down at the new york stock exchange. dow's positive, bob. >> you know, it's been positive since the middle of the day thanks to strength in some of the cyclicals as well as some of the consumer staples names and the low print on the s&p, kelly, was right at the open, essentially, and we've been moving up. we're about to go positive there. and that's because of the strength that we've been seeing generally in some of those cyclical names material stocks, caterpillar disaster last week, very strong, that's nice to see nucor, cummins the one thing that's not participating curiously is boeing, which started strong and it's been generally weaker through the afternoon. but that's the one stock that's sort of bucking the trend amongst some of the cyclicals. banks also stability there, we mentioned last week many of the big regional banks trading toward the low end of the trading range. even first republic bank which late friday night decided they were going to eliminate their dividend on their preferred

shares, they too have tirnd positive late in the day but comericaa, keycorp and zions have been positive all throughout the day the other thing that's helping is the strength in the consumer names and health care. the defensive sector had a tremendous run last year with united health just a big, big mover in the dow coke, merck, johnson & johnson all strong you see here these are essentially flattish but these are well off the lows we saw earlier in the day a lot of people are saying the cyclical -- excuse me, the defensive rally was essentially over no, i would say tyler that given what we're seeing late in the day here, sideways is a big victory for them considering how much they've moved up in the last week. tyler, back to you >> all right, bob, thank you very much. let's go to chicago now and rick santelli, who is standing by as traders await some key economic data this week rick >> yes it is going to be a big week as everybody tries to handicap what the fed's going to do by looking

at things like fed futures contracts. always important to keep an eye on them but boy, i have a feeling they're going to change dramatically wednesday and thursday as we get into those inflation data points. two-year note yields here's a chart going back, well, to early march because it was around march 8th we had 5.07, 5.07% close for two-year note deals. now we're toying with 4% as a matter of fact, we have not closed at 4% or higher for april at all the last time we closed at 4% was the 31st of march. if you put fed fund futures for january on top of two-year note yields year to date you can see why we're paying such close attention. however two-year note yields go pretty much is how the fed fund futures, they're linked together and foreign exchange within right there as well. okay the bank of japan has a new governor there ueda and he's going to have one heck of a task. so i thought it might be very important to take a big macro look at how the yen is shaping

up against the dollar, there's the dollar-yen we're well off the october levels of 150. but when you look at a 20-year chart you can see it's a challenge to try to get some strength back in the yen look at the euro-yen over 20 years. and finally, the yuan, the chinese currency on shore versus the yen. no matter how the governor winds up working toward potentially letting japanese rates loose out of their containment, i just suspect it's going to be hard going indeed kelly, back to you >> great point rick santelli. let's turn to the energy markets now closing for the day with oil lower. nat gas trying to show some life, though pippa stevens. >> starting here with oil. it's not doing a whole lot, down just shy of 1% with wti right around that $80 level although it is coming off the third straight week of gains supported in part of course by that surprise cut from opec and its allies but nat gas is the big mover, up more than 9% last i checked. and dennis kissler over at -- 7.8% i should say.

dennis kissler at bach financial says there are some fears that perhaps over in europe they won't be able to store more energy over the summer because of droughts and nuclear power plants being offline, things like that. however, the majority of this move today is thanks to short covering he noted that traders don't really want to be short with nat gas right around the $2 level and given how much it's come down this year there's a much greater risk the next move is to the up side versus to the down side so i allot of people getting out of the market. >> are we going to talk about the exxon pioneer -- i mean, this is interesting. >> yeah. >> i had no idea that company was that big, pioneer. 49 billion >> it's the biggest driller in the permian and they're sitting on some very hot acreage so you know, it's not surprising that maybe someone is eyeing them for a potential takeover. there was that journal report. and both companies told our brian sullivan that they have no comment. but whether or not this deal actually comes to fruition, i do think m&a is definitely a theme to watch this year in the energy

space because companies are coming off a record year, they have so much cash, healthy balance sheets, and if you can't grow production organically this is the way to grow your output inorganically. >> not to mention as a trial balloon. exxon shares are barely down for the day. so if you're another big potential acquirer looking at this you go, well, the market doesn't hate it. and they're paying -- i any pioneer shares relative to exxon were trading at the lowest level of the cycle let's call it so maybe something opportunistic. >> exxoning in a very strong position definitely something to watch here >> pippa, thank you so much. good to have you with us let's get to morgan brennan for a cnbc news update hi, tyler. here's your cnbc news update at this hour. the governor of kentucky, andy beshear, held back tears as he told reporters how the shooting at a bank in louisville this morning, which has left five dead and nine injured, has personally impacted him. >> i have a very close friend that didn't make it today. and i have another close friend who didn't either. and one who's at the hospital

that i hope is going to make it through. a senior administration official says the united states is closely watching china's actions in the taiwan strait, saying china's three days of military exercises undermine peace and stability in the region the official also urged restraint. and the boston bruins have made history, securing the nhl record for single season victories with 63 pins the bruins defeated the philadelphia flyers 5-3 with the forward david pastrnak pulling off a hat trick to give him 60 goals for the season the bruins will finish the season with a home game on tuesday against the washington capitals might not perfection for the perfection line but it's quite a record kelly? >> impressive. morgan, thank you. morgan brennan still ahead on "power lunch," for years "star wars" and marvel have been disney's golden geese, providing a seemingly endless supply of profitable popular content. but is franchise fatigue starting to set in with audiences? and could it have fueled super mario's massive weekend? we'ldiusth nt.l scs atex

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lunch," everybody. it was a big weekend for the movie business, starting with the blowout success of the "super mario brothers" movie the film grossed over 200 million in the u.s., nearly double the second best box office debut of the year meanwhile, disney announcing more additions to the "star wars" franchise on the way three more movies. also some negative reaction online to the "mandalorian" finale mm are viewers starting to feel some franchise fatigue let's bring in our resident movie expert julia boorstin and our resident "star wars" expert steve kockovach though julia takes a back seat to no one with respect to "star wars." julia, this was a big weekend for mario. who knew >> who knew? i mean, this movie outperformed expectations, both in the u.s. and internationally. worth noting that the release of super mario brothers, which did come from cnbc's sister company illumination, was the biggest animated release globally of all

time this is a movie that really resonated. and the key thing here, tyler, is that families came back to the movie theater. families, people with kids who didn't want to spend a lot of money or maybe have the risk of going out to a theater during the pandemic really enjoyed the fact that so much content was available at home. all of the different platforms, whether it was disney plus or you had first-run movies coming to hbo max back in the early days of the pandemic all of these platforms were offering family-friendly content. now we're seeing that they're willing to get out to the theater again and pay up for those tickets. and it seems like they think it's worth it. but i also have to point out it wasn't just this movie cinemark issued a release saying they had their biggest single day at their theaters since christmas of 2019. so what this means is it's not just super mario but people are going and seeing other films as well, whether it was "air," which was released by amazon, or whether it was the "john wick" sequel i think there was a sense that some of the older movies have held up and people are ready to be back in theaters.

>> my son went to see the "air" movie. >> is it good? did he like it i'm curious about it what did he say? >> eh. but julia, one thing that seems to stand out here to me is the idea that the mario movie is one that would apply cross-generationally to men and women, right and to young kids who are now picking up the game, right so it was a triple -- >> cross-generationally. people of my generation grew up playing the game people of my kids' generation are familiar with it and then there's this other piece in play here, and i think it's worth pointing this out, is that comcast, cnbc's parent company, nbc universal also has the mario attractions at its theme parks. not far from where i am right now here in universal city there's a big mario land so what they've been doing is using the theme park attraction, which is brand new, to do cross-promotion with the film, and it looks like that cross-promotion is really working. >> what would you add, steve >> i saw it in the theaters saturday it was great and it was a mix of people, like

julia said it was families and kids, and then people like me, just regular adults just going to see it because mario's been around since we were little kids. i've been playing it since i was born effectively and it's like a nostalgia bomb went off in the theater and everyone was just eating it up this is a new fran xhooiz for sure >> speaking of new franchises, what about the old ones? and bob iger himself has talked about this, is there franchise fatigue and how do they start to come up with things that are fresh but kind of like the super mario, mario movie, also are familiar >> yeah. we're talking about "star wars" now. just over the weekend at their big "star wars" confab called "star wars" celebration they announced three new films they're going to make. look, here's the thing that gets me fool me once shame on you. fool me twice shame on me. they've announced more movies, disney, since disney took over lucas film and the "star wars" franchise they've announced more movies and killed more movies than they've actually produced they've announced several different -- so i'm a little skeptical they'll actually pull this off

however, they are trying to get that marvel movie magic. remember a couple years ago the avengers movies kind of culminated in in big event they're actually trying to pull that off right now, jumping from what's going on on the tv side, on disney plus they want to culminate in one big movie event a few years down the road that's going to be interesting to see if they can pull it off, go from the small screen to the big screen >> all right, folks, thanks very much julia boorstin, thank you. steve kovach, thank you. >> my pacocket protector. >> still to come coral reefs disappearing due to global wainanrmg d one billionaire is installing manmade replacements to try to offset the risks gimme a time out. huddle up! i call the time outs. didn't expect to see me so soon, huh? well, i invest in a fund that fuels innovation, like next gen video conferencing, and when i saw your defense in the first half, i had to step in! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. coach, what are you doing?! this thing goes fast. before investing carefully

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welcome back it's spring break season in the caribbean, but one of the big draws, snorkeling around those coral reefs, sits in jeopardy. the planet has lost half its coral reefs since the 1950s, endangering commerce and communities. and now an unlikely pair are teaming up with a solution diana olick explains in her continuing series on the rising risks from climate change. >> they are majestic and beautiful and critical to the world economy. coral reefs, often called the rainforests of the sea, support

roughly 25% of all known marine species. the total economic value of coral reef services for the united states alone including fisheries, tourism and coastal resilience is over $3.4 billion annually that includes 1.8 billion in flood protection benefits from averting damage to property and economic activity. the annual value of u.s. commercial and recreational fisheries dependent on coral reefs is $100 million each >> coral reefs are one of the most important ecosystems on the planet >> reporter: marine scientist dr. debra brosnan has been studying coral reefs globally for more than 20 years with a specific focus on the caribbean. >> coral rhys reefs are at risk and right now we lose more in a day than we can restore in a decade. >> so she's not trying to restore damaged reefs but rather

replace them with manmade reefs designed to be far more resilient to climate change. >> we came one a technology to figure out the shape that a reef should be, the size that the reef should be in order to promote biodiversity and to protect the coastline. >> reporter: this fall the first project was installed off the coasts of antigua and barbuda. the reefs are made of a ph-neutral concrete, calcium carbonate, which mimics the natural makeup of reefs. it's a dead skeleton but then the team attaches live corals grown in a nursery, 300 of them from three different species fish move in op not easy and not cheap. >> look at that boat how exciting it is >> reporter: but brosnan found a billionaire backer >> it's my way of paying a little bit of rent for being here on the planet earth >> reporter: john paul dejoria, founder of paul mitchell hair products and patron spirits, is funding the first project, which costs about a million dollars. dejoria has a real estate project on barbuda >> i'm doing with the discovery

land project a billion-dollar project of fine, beautiful homes. incredible it's a big project now, the people that are very wealthy people, and they love the fact that we're bringing the people, everybody's getting a good job making good money and that we're bringing the reefs back it enhances more people to get involved and buy land and contribute to the project. >> reporter: and bringing the reefs back could offset much wider global economic risks to tourism, fisheries and coastal protection >> if it's doable in the region it's doable globally what we need is the investment in the technology and the recognition that there is a return on that investment in terms of our own health, our own safety on the coast and the livelihood of at least a billion people on the planet >> and fish from the caribbean are exported globally, of course brosnan and dejoria intend to build a facility on barbuda to manufacture these reefs, which could then be installed anywhere around the world back to you guys >> all right, diana, thank you

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all right. time for today's "three stock lunch. exxon reportedly, says the "wall street journal," in talks to buy the fracking giant pioneer micron up more than 7% after samsung announced it's cutting production to end a supply glut. and charles schwab up more than 5% more than 5% after a statement by walt bettinger who says business is extremely robust here to help us trade them all is the chief investment from jewel financial. let's start with exxonmobil and the possibility that it might buy pioneer. the stock little moved on this news >> yeah. i like this a lot. i think we'll see more of this in the space you have companies that are now in better financial position than they've ever been exxon huge cash surplus, already returning a significant amount of that capital through dividends, suring up their balance sheet. pioneer in the same situation. what better use of that capital

than to expand their footprint pioneer is a huge player in the permian. that gives them additional resources. i think it's a great play. i think investors can get broad exposure instead of trying to pick the next target and buy the xle, just get broad blanket exposure to the whole group. i think we'll see more m&a activity >> especially if the acquirers are not separating down. micron is up sharply after news with samsung what do you do with that stock >> you keep accumulating the dips we don't always get them right, but we were talking about this name after their earnings announcement a few weeks ago where they missed and the stock went up. the reason they went up is they talked about the cycle slowdown coming near an end that was positive for the news we said don't chase it but look to accumulate on pullbacks we got that pullback, now we're

getting a nice spark here. ultimately you're talking about a fundamental beast. this company has been seeing a compound annual growth in their return on equity of about 20%. they've been growing intrinsic value of about 20% for the last several years. the stock price has not reflected that yet we suspect that will happen. look for a breakout. you can put your technical hat on here, over 65 and i think we'll get a little fomo. i think you can still buy it here even on today's move. >> charles schwab has been beleaguered, tarred by the brush that has hit some of the mid size banks and so forth. what do you think of this one? >> this one hits close to home we're a fiduciary adviser, we use them as a custodian. their brokerage side is extremely strong i don't see challenges there their banking side, that might be concerning. that clearly is why the stock is trading where it is.

however, if you dig deeper and you can look at the bond action and the bond prices are not reflecting the distress that we see in the equity side so, we think this could be an overblown and an opportunity that said, i think a lot of these banks that are undergoing this pressure, i think you don't have to sort of act in haste and you can wait to see a little bit more clarity on what the fdic and treasury will do with the insured limits make no mistake, what walt is doing and saying is smart. this is an area where we look to acquire if we got more clarity on the insured limits. >> let's talk more broadly about the markets right now and what your view of them is they feel a little tentative, maybe squishy today, little changed after friday's jobs report >> yeah. we're waiting on cpi and ppi, the inflation data and the fomc minutes. we see there's a lot of fundamental strength out there

there's a lot of negativity baked in going into earnings season i don't think people are giving the respect of this recent up move we've seen, specifically in big cap tech we've been buyers in here. we continue to be long we're not nearly as pessimistic as other folks out there we think inflation will continue to show signs of a decline, and i think that's going to continue to put the fed back off a little bit and that will give further boost to equity prices >> let hope inflation does come down it's getting expensive at the grocery store. qu quint tatro, tnkha you >> thank you. new details on what led to the failure of ftx we'll have that discussion next.

welcome back the price of bitcoin has made a large comeback there you see it now over $29,000. up 46% this month. some acting as a hedge against dollar pacement, slowdown. while crypto is meant to be detached from the banking system, the effecting of the banking crisis could be bleeding into the space binance is struggling to find a bank to hold its customers cash after the failure of signature the crypto space had its share of black eyes lately, namely ftx which released a report from debtors which led to its

failure. here to discuss is mackenzie segalos. binance needs a bank quickly >> it definitely does. it's been struggling to find a banking partner since the collapse of silicon valley bank, signature and others if you look at bigger players, circle and coinbase are still working with leading banks in the country. binance has those regulatory concerns >> why don't they just go to the big banks and say i would like to -- i'm sure a lot of those banks could be delighted to have customer deposits. >> with binance, it's facing the lawsuit from the ftfc saying they were perhaps bypassing u.s. regulations. there are also concerns at the s.e.c., they may have certain things to say, the doj, there's been reporting from reuters.

that's the concern here. what's funny is that -- >> you'd be playing in a messy swimming pool. >> you don't want to get involved if anything, you would have thought it would have been crypto markets failing or falling after the collapse of these two big banks. if anything, it's the opposite bitcoin and ether are doing quite well over at ftx, as they chronicle the downfall there, people are chuckling over the $40 millions that sam bankman-fried said we can't even find this money after the time >> to go to your earlier question, this dovetails with what kelly is saying, there's practices where there's not confidence in corporate structures and any typical compliance that you would expect of the more established entity we're talking about billions upon billions of dollars of

crypto that's allegedly lost sam bankman-fried wrote it off as such goes life. >> what's 40 mbillion here, 40 billion there. >> all right thank you. thank you for watching "power lunch." >> don't go anywhere closing bell starts right now. this make or break hour begins with major questions about earnings, the fed and your money and how this week could hold the answers to everything here is your score card with 60 minutes to go in regulation. energy and industrial stocks like caterpillar leading the way. technology and communication services are dragging the market apple lower today on report of falling pc shipments globally. microsoft falling a bit. there you see both stocks in the red. that brings us to our talk of the tape have we seen the worst of the