sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. good afternoon, everybody. welcome to "power lunch. alongside kelly evans, i'm tyler mathisen coming up, earnings season kicking off with a bang. united health dragging on the dow, just talked about that one. but jpmorgan jumping we'll dig into all the numbers the big banks, get the picture from a regional bank ceo as well >> plus, a big interview coming up with new jersey governor phil

murphy we'll get the state of the state's economy and talk taxes, the wealthy, corporations and much more. first, a check on the markets though as stocks are sliding and trying to hold on gains for the week nasdaq has given those up. dow down 232 points. >> to dominic chu for a look at the bigger movers. >> we start with a couple of stocks that are the biggest drags. boeing shares far and away the biggest percentage decliner in the dow. the aerospace and defense contractor is getting hit hard after it warned it may have to pause some deliveries of its 737 max model jets due to a potential parts problem. boeing said the issue would not affect the planes that are already in service, nonetheless shares down 6% right now the biggest point drag on the dow comes from the aforementioned from tyler united health group after the health insurance giant actually reported better than expected profits and revenues, even raised its full year guidance. there are some investor concerns

about how future policy changes involving the medicare part c or advantage programs could impact profits down the line. those concerns would lead to a drop in united health, but because it is a $500 stock, very big waiting in the dow we'll end with a massive downside move in shares of% catalint the worst performing stock by a wide margin, down 26% now. the contract drug manufacturer lowered the current quarter and full year outlook given productivity issues and higher than expected costs at some of its manufacturing facilities it also said that chief financial officer thomas castellano has stepped down for reasons not related to any disagreements with the company, management or board. take those two together, a 26% drop in an s&p 500 company back over to you. >> thank you very much, dom. a big morning for bank earnings setting up a full week ahead next week. let's go through what we heard so far jpmorgan reporting a surge in

net interest income, cracking $20 billion and guiding for more than $80 billion this year, that would be a record. citi reporting a 7% rise in loan loss provisions from the prior quarter, just a hair under $2 billion and slightly worse than analysts expected. and wells fargo reporting a 13% drop in noninterest income, driven primarily by falls in venture capital, private equity, mortgages, which the bank has been winding down for many quarters now you see the stock performance with jpmorgan outperforming, followed by citi and wells joining us now for more is gerard cassidy, rbc capital markets head of u.s. bank equity mr. cassidy, welcome, good to see you. how do you weigh these bank results that we have gotten so far today? good, bad, mediocre, what? >> yeah, tyler, very good when you take a look at jpmorgan and citi as well as wells fargo. the net interest income numbers were very strong

and showed up particularly so at jpmorgan and citi. and the reason being is that their funding costs didn't go up that much. they went up, don't get me wrong, they went up, not as bad as some people expected. and their net interest, the earning asset revenues or the yields in the earning assets were better than expected because of greater loans outstanding. i think it was jpmorgan had a very strong growth in their credit card receivables this quarter as did citigroup the numbers as the stocks are showing are quite good for the big money centers and coming into this quarter, everybody was quite pessimistic for the banks as you know. >> i don't know whether my numbers give me the most recently updated target prices from you but i see what i'm reading is that you have $132 a share target price on jpmorgan it is trading at $138. are you going to change that >> we will have to reassess when we get through our numbers

today. we're still working on the numbers. and clearly thejpmorgan result are better than expected and so we'll have to reassess all of our earnings today as well as our target prices later on today as well >> okay. >> what about pnc, gerard? that is down 2%, turned lower, gave up earlier gains, concerns about the lower loan loss provision, a lower quality beat and maybe that has to go up in the future just the fact that the regional banks are in the red probably not the reaction we were hoping for after what are perceived to be some of the biggest and strongest turn in their results here. >> it is a good observation that the stock is down. i would point out that this company in the fourth quarter, their provision in the fourth quarter was much greater than all their peers. so even though the provision this quarter which drove the beat was lower than the fourth quarter, where as the other three banks we just mentioned had higher loan loss provisions,

pnc built up those reserves already. more importantly, i think what you're seeing on the regionals is that the net interest revenue and pnc did not grow as much as expected because the margin pressure due to the fact that the deposits were higher for them the end of three big banks, that was not the case and i think people are reading through. and accurately so that the regionals may see higher deposit base, particularly in the commercial deposit area. >> exactly so what is the knock on effect from all of that if they're facing more earnings pressure, what does it mean for stocks, for potential, i don't know, consolidation, deal-making, what do you think >> the deal-making is a little premature. i'm with you i think you got the right thought. i just think it is going to take longer meaning the next two or three years, not in the next six months reason being is that the interest rate marks are still, you know, i think an obstacle for more deal activity but the stocks to us following this silicon valley signature

failures sold off very hard and i think this is somewhat of an overreaction to what pnc put up there. the banks are still going to report, we believe, positive earnings growth and credit quality is still very strong and all four banks showed very strong credit quality today. they're all bracing for the recession or slowdown, which is why they built up the reserves, but generally speaking, credit is very strong at regional bank level and the big banks. >> all right, gerard, thanks so much for joining us today. we appreciate it >> thank you >> gerard cassidy. regional bank reporting q2 earnings miss and rise in revenues shares down 3% today headquartered in seattle, the bank is known for its conservative approach, for more on the state of banking, let's bring in brent beardal, president and ceo. he's the sixth ceo in the bank's 300-year history welcome back. >> good to see you >> good to see you too

to say this is to emphasize that your bank has been through plenty of difficult times, what do you say to people after a quarter like this about the variability you continue to expect, the earnings pressure you might face from a higher, you know, cost on deposits, and how long this period might last? >> i'm actually very pleased with this quarter, all things considered everyone knows what happened to midsized banks and the wake of silicon valley, especially west coast banks. everyone was wondering what happened to deposits and what would happen to deposit data we were very happy to report in the month of march we had net deposit inflows of $25 million for the quarter, we were down just shy of $100 million that's less than 1% total deposits but i think what you see big picture is that deposits are flowing from midsized banks to the largest banks. i think jpmorgan announced this

morning $37 billion of deposit increases, and their margin expanded for midsized banks, we're in a tough position right now because of the perception that the too big to fail banks they have this implicit guarantee and customers ask us every day, you know, is our money safe and i have a great answer, i believe, but the fact we have to answer that question is not a very good position to be in. >> let's talk about one of the things that seems to cripple silicon valley bank, their wrong-footed holdings of longer term treasuries and mortgage-backed securities where are you keeping your excess deposits and how do you avoid getting tripped by the same kind of wire? >> very good question. a reason they went into those securities, their loan to deposit ratio, i believe, was only 42% for every one of their deposits, they had 42 cents invested at

once at wafd, we're very different. we're a financial intermediary we don't want to be a net investment player, if you will so we have over 100% of our deposits are invested in loans so that's how we kept from making the same mistake they did. and, in fact, we went so far in today's release to say, if we included the losses on our maturity portfolio, what our equity would be, it would be at 10.5% equity to asset. >> you were optimistic or pleased by the loan growth rate that you were experiencing are you still? >> we yeah we had to temper that loan growth our rate grew at 22% annualized in the december quarter. we had to bring that down in this quarter to only 6% loan growth and some of that is happening naturally because of what the fed has done and our client is pulling back

that is in reality because of the deposits buying all west coast banks find themselves in because of what happened with silicon valley bank. >> brent, where are those demand for loans coming from? i was struck by warren buffett on our air earlier this week who said in railroads and cyclical parts of businesses, things are down substantially he wasn't bullish on the economy. everyone knows about commercial and office real estate being a worry spot where are you seeing still quite strong demand for loans where you feel comfortable extending credit >> yeah, you know, i'm a big believer in housing, especially in our eight western states. we have net migration. we have a huge undersupply of housing. so there is a lot of multifamily coming to the market now but i think what's going to happen and so many people are pulling out, then you're going to see i a dip in housing i believe multifamily housing is a great category i think family single housing

for rent is another fantastic category anything that is shelter-based, we're bullish on right now. >> i think that phone was someone calling and asking for a mortgage there last year you announced it was an acquisition of a california-based bank which will take you into california give us an update on where that deal stands and what you expect it to do for you >> yes we're very excited about that deal that is luther burbank savings in california, an $8 billion bank we announced that deal in early november last year and we're in the middle of our regulatory application process and i think it is going well to date but as you know, the regulators are busy with a lot on their plate, and bank mergers are heavily scrutinized right now. so we're in the wait and see game in terms of how that goes but one of the things we did is we hired a commercial banker in california that used to be the ceo of a bank there, and we're really excited about the prospect of what we can do in

california california from my perspective, i'm from california, and i looked at so many banks over the years that have gotten overlevered in california. and what luther burbank has shown to us is there are some very strong credits available in california you don't have to overlever. they have a multifamily book that is on average i think 52% loan to value. >> brent, great as always to see you. wish our friend brad good a belated happy birthday to us. >> great to see you both thank you. coming up, walmart continuing to unwind some of its e-commerce acquisitions. is this a walmart specific problem or something bigger? maybe a post pandemic phenomenon where people are going back to stores how about that new jersey governor phil murphy about to join us as he tries to get the state's finances in order. and he's making some progress there. we'll ask him rising interest we'll ask him rising interest rates are affectin

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welcome back, everybody. i jumped the gun welcome back, everybody. time for today's tech check. walmart continuing to trim back parts of its e-commerce business, selling direct to consumer brand banobos for $75 million, a far cry from what they paid for from it. >> it is selling at a time when

it has been unwinding a lot of different direct to consumer brands it recently sold moose jaw, outdoor brand through dick's sporting goods and a continuation of some of the brands have a reality check with their value and a lot are going to things like brick and mortar. with walmart, they haven't done a whole lot with bonobos since they bought it. >> more than 300 million and now selling it for $75 million. >> a big drop for them they found overlap with their brands last year they launched a bonobos extension of their brand, in their stores and on the website and they thought it was too similar to what they already carried. they're selling it off now and focusing on the basics of e-commerce rather than the shiny brand. >> it was not merely an e-commerce brand, was it i've seen them in nordstrom, i've seen them in other stores. >> yes bonobos is a name that started out as direct to consumer but

found it was hard to operate without locations. they opened up stores that acted more like showrooms. the sales happened where people leave without the item and get it shipped to their home. >> they shut down jet.com after paying $3 billion for it a smaller new york centric delivery site, i can't remember the name of it. >> jet black. >> jet black, yes. a number of these. and i don't know if they finally said enough is enough because the core business actually has done quite well. all of these acquisitions that haven't panned out. >> exactly it is worth noting that e-commerce has grown dramatically and a lot of that came from the pandemic in january of 2020, right before the pandemic started, e-commerce drove about 6% of their overall online sales for walmart u.s that's grown to 13% as of this january. but i think walmart changed its approach it started thinking about how it could use the fundamentals of its business at its stores to lean into faster delivery,

fulfilling orders at a lower cost and shifted away from a lot of these companies that it bought under mark lurie. he left in 2021. during that time, a lot of the brands were thought of as the future of e-commerce. >> and now it is -- they weren't and it -- what is interesting about this is it is putting pressure on amazon the fulfillment to the household if you want to call it that they need to get better at it competition from walmarts and targets and their model is fascinating. >> similar to what we're hearing from amazon, the focus is on driving up a profitable e-commerce business. and that will come from things like automation, it is pushing into it is all about making money now, not just driving sales higher and a lot of the brands like bonobos were known for growing at all costs but not necessarily

making money. >> at the end of the day. >> at the end of the day, what you want to do is make money melissa, thanks. have a great weekend. >> you too. coming up, a boeing concern, the aircraftmaker can't seem to get out of its own way whenever they recover from one issue, they seem to stumble toin another, this time halting deliveries of some 737 maxes we have more whas no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to when "power l comes right back cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

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welcome back to "power lunch. the market is 100 points off the session low. dow is down half a percent the s&p broadly is down ab about .4%. let's get more from bob pisani hi, bob. >> we're breaking a nice three-day win streak here. but it is very impressive when the big money center banks that are reporting are leading the s&p 500. so, jpmorgan, citigroup, leading the s&p, black rock and others leading the s&p 500, bank of america also not reporting, but also nice move to the upside

net interest income generally very strong. reduced expectations, and they're doing better than those reduced expectations that could be a template for earnings season that we're seeing i think the contrast with the regional banks is very interesting. pnc had very good numbers. there is a whole thing about reducing their loan loss reserves the way i used to read this, this is a good thing that means credit quality is getting better that's generally a good sign i heard comments today it is a poor earnings beat when you do that but i find it a rather strange way to look at things. you see the regional banks underperforming today. pnc hit a 52-week low. so what has been happening is a widening gulf between the money center banks, and the regional banks. look at the kbe, it is the overall bank index and very heavily weighted toward the big money center banks that jpmorgan and bank of america and the kre is the regional banks, the pncs and you see that on the orange

line below that. those regional banks are notably underperforming now. the big money center banks that's been a trend for the last couple of weeks. finally, just on the s&p 500, down today, but we're in an up trend, up half a percent at the highest level since february the important thing here is the rally is broadening out, more advancing stocks than declining stocks this week back to you. >> bob, thank you very much. let's turn to bond yields as they are rising today. rick santelli is in chicago for us hey, rick. >> hi, tyler what a morning if you looked at import and export prices, they were all lower. import prices year over year were down 4.6% export price year over year, down 4.8%. if you monitor retail sales, quite strong -- excuse me, exceptionally weak what was strong was university of michigan. here's the big asterisk, if you looked at the one-year inflation rate, and we talked about this

on cnbc for many times throughout the session today, 4.6% and this is important to watch the forensics of how the market behaves. let's go to the white board. two-year note yields, we know we have weak data 8:30. we saw it pop up a bit ultimately it popped up to around 412 when the data hit for university of michigan one year inflation outlook, we had a higher yield at 4.13% if you look at ten-year notes, the spread difference was quite charge this is significant. 2s to 10s, the yield curve spreads, when the 2-year note yield stops going up as the fed gets done, there will be big moves. finally, how did it all pan out in maybe this is the most important feature of all the low terre goes, the more fed it brings in these were the most responsive contracts at 8:30 and 10:00 and the fact it made a much lower pricing at 95.51 brings in more

fed, really gives us a glimpse of what the market is paying the closest attention to and what may unravel the fastest when the fed finally admits it is done, even though much of the equity rally may be in the rear view mirror kelly, back to you. >> i give him an a on this. >> an a. oil closing for the week pippa stevens here >> 50 cents higher on the average price of gasoline since january and we saw the fallout i digress. >> i don't have a white board. not as engaging. but look at what a muted end to the week for oil, fourth straight week of gains we did get the latest report from the iaea today and they had choice words for that surprise cut from opec and its allies with saudi arabia, of course, and the precautionary move the iaea said this was all about supporting prices, given the

recent weakness we had seen. they forecast demand hitting an all time high above 101 million barrels, that's global demand. they said consumers confronted by inflated prices for basic necessities will now have to spread their budgets even more thinly and this is bad for the economic recovery and growth part of that is that we're not seeing a huge uptick in production in the u.s. we just got the latest rate count data, lowest since june 2022 a lot of things to watch here as oil and gas earnings kick off next week. to bertha coombs now for a cnbc update. >> here what's happening at this hour protesters continue to march in france this evening. eight major french unions telling the media they refuse to accept president emmanuel macron's invitation to meet for discussion following the constitutional court's approval of macron's pension reform bill. raising the retirement age to 64 one union leader saying they

will not meet until the bill is removed. the arraignment hearing of cash app founder bob lee's murder suspect nima momeni has been postponed to tuesday, april 25th the 38-year-old tech consultant was arrested and charged yesterday in san francisco no bail has been set and at the moment he remains in custody. legendary composer andrew lloyd weber was awarded the key to new york city today honoring his contribution to the city this is weber's "phantom of the opera" prepares for the final weekend of shows i can't believe it is actually coming to an end it caps off a 35-year run on broadway they tried to close it before. sort of like tom brady retiring. they keep bringing it back i guess this time it's for real. >> one of the greats of all time really one of the great shows. thank you, bertha. ahead on "power lunch," check out this video of

prot prot protesters charging into the headquarters of lvmh higher taxes may be driving wealthy residents from states like new jersey and new york to other lower tax states od, how significant is the exusreally we'll speak to new jersey's governor phil murphy about that and much more next dad, we got this.

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welcome back to "power lunch. a big boost for our home state of new jersey, which got its third credit rating upgrade in five days. earlier this week, s&p global ratings upgraded its rating on new jersey's general obligation bonds from to a from a minus this follows an upgrade from fitch and moody's as well. here to discuss the upgrade and much more is the governor of our state of new jersey, phil murphy governor murphy, welcome good to have you with us good to have you -- both of the hosts of the show are residents of your state. let's start with the upgrades.

if my son had as many as as your state does, i wouldn't be so worried about what college he's going to go to how did you do it, how did you get there, what does it mean for the residents of new jersey, and then finally what do rising interest rates mean for the borrowing costs that the state faces? >> all good questions and i wish your son nothing but the best of schools. listen, most importantly this means for residents of our state we save money, they save money period now, how do we get here? jersey way back, decades ago, was a role model state, a aaa bond-rated state and both sides of the aisle, for several decades, just engaged in irresponsible behavior debts were going up, property taxes were out of control, we didn't make our pension payment. on and on and on

i got elected the first time and got re-elected in '21 to basically fix the state. and i'm not going to pat ourselves on the back. this is a journey. but we have now had six consecutive credit rating upgrades, the prior administration had 11 consecutive downgrades what is the formula? it's making your pension payments, it's getting a hold of property taxes and making the state more affordable. it is reducing indebtedness. basically becoming again a state that folks trust and find reliable again, we're not there yet but this is a journey and we made a good amount of progress, we won't rest until those as keep going north from there. >> good, we will come back to the question of real estate taxes and to income taxes in just a moment. but, i'm told that shortly after silicon valley bank failed, you traveled to california to meet with executives out there.

silicon valley bank executives or others. why did you make that trip whom did you meet with and what did you accomplish? >> yeah, i actually made the trip before that happened. but it was fresh in our memories i was out there. i'm the chair of both the national governor's association and the democratic governor's association. we had a conference for the nga in santa monica. we spent a lot of time with the movie studios, new jersey is on fire on film and television and then i went up north, you're right, to meet with venture capitalists and tech startups and companies. that's who new jersey is we're an innovation economy. tech, telecom, bio, life sciences, pharma, fintech, film, television, digital, offshore wind, green economy. that's who we are and that's what we were out there pitching. >> okay. let's talk a little bit, come back to the question of taxation as you well know, new jersey has

the third highest income tax rate in the country. it has overall the highest real estate tax rates in the country. i live in montclair. the taxes there are very, very high painfully so what are you able to do and what are you able to say, famously said, hey, last fall during the campaign, something on the order of if the only thing you care about is taxes, maybe new jersey isn't for you. i'm paraphrasing how do you think about the level of taxation, how many people, especially wealthy people are leaving the state of new jersey, and what effect is that having on inbound revenues? >> yeah, these are all very good questions. first of all, we have more millionaires today than we ever had before and that does not mean that we don't take affordability deadly seriously. frankly it is job number one it is our obsession. but the fact of the matter is each state has its own bumper

sticker. some states, you know, you don't pay any income tax where the weather is warm. new jersey's bumper sticker is the number one state in america to raise a family. everything we do feeds into that number one rated public education system, top handful of healthcare systems in the country, incredible quality of life location, et cetera you add all that up, none of that comes cheap that does not mean we don't care deeply about affordability we back up the truck on property tax relief we make college accessible >> could you bring a truck to my house? bring a truck to my house, man. >> listen, you live in montclair, affectionately known as the people's republic of montclair. quintessential new jersey community. one of the most successful communities in america great school system. great transportation great quality of life, diversity, everything you would want raising your family, that's

why you're there. >> agree, agree. >> none of that comes free and so -- that does not mean we're not obsessed with -- we got something called the anchor of property tax relief programs. which admittedly is means tested, so it doesn't touch everybody in montclair but if you make less than $150,000 a year, the median salary in new jersey, you're saving $1500 a year on property taxes. that knocks it back to 2011. even if you make up to a quarter of a million, you're saving a thousand that probably knocks it back to the middle of the last decade. we take all of that very seriously. again, you know, when you're the number one state in america to raise a family, a lot goes into that >> governor, kelly here. post pandemic, a lot of new jerseyans who were there to commute into new york city have really enjoyed spending time at home and they would love to have a job a little closer to home. they would love to work in new jersey, but there aren't a lot of jobs for them what can you say to those people

who say, hey, i would love to commute 15, 20 minutes and not take the ferry, not have to deal with the mass transit system, what are the prospects for there being a higher number of professional white collar financial -- whatever you want to call it, a corporate base in new jersey in general, we would love to see more announcements of companies moving in versus moving out. >> they are moving in, kelly good to see you, by the way. and there are -- listen, these are crazy times as we all know notwithstanding all the myths of people living new jersey in the last census new jersey grew 5.25%, the median of american states and then you know you both know because you live here, since the pandemic hit, you had another further influx of folks either out of new york and philly or folks who otherwise would have gone to new york and philly and came to new jersey and those folks are still in many respects as you all know in

a hybrid sort of life, commuting some days, they're at home other days, but our unemployment rate is .1% above our all time low. companies are moving in. i just celebrated a very high end pharmaceutical research company that is headquartering in princeton, 150 jobs, pfizer just opened up its headquarters in berkeley heights last year, 3,000 jobs i was on with the wall street firm, most of the middle and back office of wall street with some seriously high paying jobs are in new jersey. so, again, in the space that we're competitive, we're competitive largely speaking in the innovation space, we are growing. i was with -- i'll give you one last example with a guy last night who was building, are you ready for this, what will be the world's largest movie studio who would have thunk it. that's in bayone, new jersey,

massive with a lot of really good jobs above and below the line we're not perfect by any means, but we're working on it. >> bravo i hope we have time to come back to the legalization of marijuana and how much revenue you're deriving from it i want to ask you about the abortion debate that is so hot right now. today, governor desantis in florida signed a legislatively passed bill that would ban abortions after six weeks. how do you think abortion is going to play out in the 2024 presidential election? how do you think it will affect governordesantis particularly, and, third, do you think it is an issue that could tip the election one way or the other? >> some of that is beyond my pay grade in a sense that my nose is pressed firmly and almost completely on the new jersey glass, but i can give you one perspective we live every day.

and i say this as an american with a heavy heart it matters more than ever before where you live and where you work it is not just the -- we spent a good amount of time as you should on affordability, and that we're obsessed with that. and we need to continue to be. it is also increasingly values where is your state on mifepristone, on abortion generally, on reproductive freedom, on gun safety, on voting rights, on lgbtqia plus freedoms and rights, on the environment. i could go on. there is a list and you all know it as well as i. we're sort of becoming a patchwork, quote, country. i personally think as it relates to electoral politics, it has huge residence i say that again with a heavy heart. i wish we weren't in that mode, but i believe it has huge reso resonance, particularly in a general election i think ultimately it catches up

to states that think it can push back against freedoms without any limit, and expect that there will be no consequences. at a certain point, and i don't know where that break point is, the line of people who go to florida, to pick florida, that's the example you used, who go there because you don't pay taxes and like the weather, at a certain point that reaches a breaking point when you don't have reproductive freedoms, voting rights are restricted, you're being told what books your kids can or cannot read, what teachers can or cannot teach, subject to felony, by the way, open carry, conceal carry, don't say gay, on and on and on, that market is not unending. at a certain point, i believe there is a breaking point in any american state >> governor murphy, thank you for your time today. we hope to have you back we'll get back to the question of marijuana decriminalization, number one, and my bugaboo, i love new jersey.

but the way it is organized, if you -- you're a goldman guy. you know you would never put up with the way new jersey is organized around all those little townships, all of which have their own individual school superintendents, police chiefs, fire chiefs. you do something as an -- governor murphy, thank you, appreciate it. >> nice to be with you all still to come, we have some key movers of the day with stocks still into the loss stocks still into the loss territory, down about half of welcome to a new era of flight. 1% "power lunch" will be right back what if buildings could tell you how they could be more efficient? i'm listening.

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welcome back to "power lunch. this morning on "squawk box," banking analyst chris whalen made some comments about citigroup as the company was reporting earnings after checking some of the numbers which are complicated, we want to make some clarifications whalen said citigroup's target is a subprime consumer and has a high default rate five times as high as jpmorgan's on loans. according to q4 data from the federal reserve, that number is not correct. the ratio is about double jpmorgan's an hour ago, whalen admitted his mistake in a tweet, but also noted that citigroup's default rate is five times as high as

the large bank peer group. that's also according to the fo fourth quarter data from the federal reserve. an an email, a spokesperson told us citi does not have a high default rate on the consumer credit book and also called incorrect whalen's description of the bank as targeted toward mebprime consurs mebprime consurs and after the break, today's 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. three stock lunch. i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights.

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welcome back, everybody. time for the closeout this friday and some of the biggest movers to discuss. we got to start with boeing. shares are down nearly 6% as they halted the delivery of the troubled 77 max model and united health, both of these companies shaving points off the dow unh down 3% despite beating q1 estimates. and jpmorgan up huge after the record q1 revenue. a 7% pop today let's get more from shelby mcfadden, an analyst for motley fool asset analyst good to see you, shelby. let's start with bowing. >> absolutely.

great to be back when it comes to boeing, it is going to be a hold for me, it starts with what you mentioned before, the concerns around the near-term top-line impact of the 737 delays but when we look a little bit deeper into that, we see a little bit more concern about the quality of the supplier network. there's a big question, is this going to be another transitory issue? how long is this going to last so understanding that there is only so much that boeing can do when it comes to ameliorating this issue, i think it is definitely reflected in a little bit of the punishment of the stock. there's also the concern of the fact that this is a substantial portion of the 737 backlog and 737s being such a large portion of the top line sales. and i would be remiss if i didn't think that there was a little bit of extra punishment in there, but the fact that it just sometimes needs to be hit after hit, and there may be some even long-term buy and hold

investors that are getting a little bit fatigued. so we'll see in the coming days if they're overpunished to begin with, but i would say that some, you know, an issue of that severity, with their supply, to resolve it sufficiently and safely, is a reason to definitely take a pause and hold wait and me. >> big whale in the news today and that would be united health. what do you think here >> united health is also going to be a hold for me. it is actually really an interesting example of why we want to take a look at not just the earnings print, but also really dig into the fundamentals, really with the management on the calls, because they had really a great quarter. and then the stock is down 3%. and it's coming down to something that is affecting the entire industry and that's going to be the medicare reimbursement rates. because united health can't do anything to control the government in those sorts of decisions, it is an opportunity for me to say the fundamentals otherwise look really strong, the business is really strong, and they're very competitive,

let me go ahead and hold and see if they can show me that they're going to be best in class while everyone is dealing with this. so again, it is an opportunityy market will be kind of taking the foot off the neck a little bit over the next few days, but it just goes to show that there is a lot more significance than just the print >> quick final word on jpmorgan, what is it for you, shelby >> jpmorgan is a buy for me. and that's because they've delivered on what a lot of us thought would be coming for the quarter, following that micro crisis in march for banks. and what they've done is they delivered impressive deposit growth really robust guidance on net interest income. their capitalization looks great and their credit is surprisingly strong, compared to what it was, expectations were in anticipation of any sort of downturn so they're a great example of strength in management, and the advantage of scale >> yes all right, shelby, good to have you today, thanks so much, we appreciate it.

>> we just finished the cocktails and now baseball, beer and unintended consequences. that story in "under the that story in "under the microscope." ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?! ♪ yeah, yeah ♪ conventional thinking delivers conventional results. at allspring, we break away with purpose. harnessing data-driven insights and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all.

allspring. purposefully divergent. good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones.

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in game times because of the new rules. they have a pitch clock and other things but the shorter games aren't great for everybody. like the beer seller dominique chu is here to explain. dom? >> under the microscope for beer sales, he says 30 minutes, but it is actually closer to 31, so yes, just a little bit longer than what tyler points out, but the point being that because of those pitch clock changes to enhance the guest experience, you're getting some of that taken away in other parts. let's take a look at the beer sales. because in response to those shorter game times, and in other words shorter times to enjoy some of the beers and other adult beverages during the course of the game, there are at least four teams in major league baseball right now, possibly more in the offing that have now extended their beer sales, beyond certain cutoff points, usually by about the seventh inning stretch or so, if you take a look at the minnesota twins, the arizona diamondbacks, the texas rangers, and the milwaukee brewers, maybe no shock there, they have now

extended their beer sales times to account for the fact that there are now shorter times. but i would point out, so many of these teams are taking this as a fan experience portfolio. especially for arizona earlier in my career, by the way, pre-cnbc, i was asked to do a feature on the business of baseball, and part of it was the beer at chase field in arizona, five bucks, great experience. >> wow fantastic. >> dom, thank you. >> thank you for watching "power lunch. >> play ball closing bell starts right now. welcome to "closing bell." i'm scott wapner from won't nine at the new york stock exchange it is make or break hour, it begins with a big bang for the banks. better-than-expected earnings, sending several names higher today. and now one of the most influential analysts on the street has upped his estimates on one name in particular. in the wake of those results mike mayo is here first with those details. here is the score rd