clearing about five months worth of congestion right now. i think it's a breakout. >> farmer jim? >> wynn resorts. it's been consolidating for two months and is breaking out right now. >> all right what do you got, amy >> vertex pharmaceutical stock has been on a strong trend. >> good stuff. thanks for watching. see you on "closing bell." "the exchange" is now. ♪ ♪ hi, everybody. welcome to "the exchange" today. i'm kelly evans. here's what's ahead. sound the alarm, stocks back in the red. the declines are not huge, but the reasons why are troubling. a key economic i wouldindicator dropping to a three-year low we tell you whether we should officially start the countdown to recession as for the consumer, american express still sees resiliency.

allied financial sees rising delinquencies, and one in five americans are buying groceries with installment loans the airlines are supposed to be one of the main pockets of strength, but alaska posting a bigger than expected loss. we'll have a cnbc exclusive ahead. but first to dom chu for the latest >> how about this. in the red but at session highs right now. to kelly's point, we're red across the board, but up 0.1%. the s&p down about nine to ten points, represents the high of the session. at the lows, we were down 3 points so hovering right below that mark the nasdaq outperforming a little bit, off about 0.2% if you are looking for a real bright spot in an otherwise

modestly red market, check out what's happening with many of the home construction related stocks dr horton is the stock of the day, up 6.5%, one of the best performers in the s&p, after the home builder came out with better than expected results, profits and revenues, and the company saw demand build for homes throughout the course of the quarter, despite higher interest rates and prices. so dr horton, a real standoff. that's giving a halo effect to names like lennar and even masco, delta faucets, up 2.5%. u.s. home construction up 2.5% a lot of green with regard to that single family home trade. and the s&p, at&t shares down about 10% right now. at&t comes out with slightly better than expected results for profits. slight they'll miss on revenues, but it was the free cash flow that has everybody more worried

about what's happening at&t did, kelly, reaffirm its full-year free cash flow targets out there. it did gain some wireless subscribers, lost some on broad band at&t, the stock of the day back to you. >> you can imagine all the people in it for the dividends well, there goes my annual dividend yield for the day >> and it is peskier than it was before we'll see if it can stay that way. >> dom, thank you. let's look at some of the other weak data we got today the philadelphia fed manufacturing index, down for the eighth straight month in april, or contracting, and it hit negative 31 today. jobless claims continue to rise. they were up to 245,000 last week continuing claims have risen by 500,000, so it's taking longer for people to find new work. the leading index dropped 1.2%

in march and existing home sales down last month, as well is a recession upon us let's ask jamie cox and francis donald francis, let's just kick things off here weakening is the picture >> weakening, and this is the game with macro. it's not about the level but the direction. for most of the leading economic data, we have both of those problems some of the levels of this sharply negative data is specific not with just garden variety recessions but some of the worst recessions we have seen and continue to see a deterioration in this data that matters. we still get pushback, but jobs are still so high. let's remember jobs are the last shoe to drop when we are in this head wind environment. so we're looking ahead, unfortunately, just about everything we have on our docket tells us a recession is coming if you are going to push back against that, which you can, you have to say, well, this time is different. and it just might be

but if you are an economist with numbers, it's hard to see anything but a recession right now. >> it's so obvious and normal, the way that this is playing out. i wish we could hear more from the fed about it not about employment and inflation in all the last places it shows up, but let me just ask you this, francis. one thing that is different from 2008, consumer balance sheets are in better shape. so as odd as it sounds to ask the question, do you think households can bear a bad recession better than they might have been able to do 15 years ago? >> well, they may be able to the other component is we still have a significant labor shortage we had significant mass early retirements. we may see a sizable recession in growth data that doesn't translate as much to the labor market that might nullify some of the challenges we are seeing ahead even though i can look at this huge bevy of data that says quite clearly a recession, there are elements that may make this

a little less bad. my question for the fed, what are you going to do when unemployment starts to rise but inflation is still 3%, 4%. we have been so inflation focused, they may have to say you know what? we're going to have to cut even with inflation at 3% that will be very uncomfortable for them >> great point jamie, let me turn to you. i feel like you're not as bearish, but you're still in the camp of staying this is going to happen and the fed needs to do something about that i know a lot of people like you focus on ai trades, but can that transcend these macro winds, do you think? >> the accumulating effect of interest rate policy over the last year is really catching up with the data. the economy is really struggling, and that was on purpose. that was the fed's game to lower inflation. when they slam on the emergency brake with fed fund rates, we are seeing in realtime what the effect of that is. what i'm hoping is the labor market is strong enough to

sustain us through the manufacturing peeks of this, where the price is paid and portions of this can become transitory because the fed made it that way. so i'm hoping we can get inflation to fall and have some type of, you know, economic slowdown that will not translate into the hardest recession but unfortunately, the further this goes and the higher interest rates go or stay for longer, the recession will be longer, harder, and deeper so i do believe you can trade through it, but it's not going to be an easy thing. to add insult to injury, we're staring down the tooth of a debt ceiling debate, which is completely unnecessary so we have a lot of things making it difficult enough, and then add on top of it something that is artificial, you can get a very bad result in the next couple of months >> jamie, why is the market -- not just the market, we see plenty of corporate bond

issuance, we see signs that look good if people were looking at the signal from equities, they might say, you know what it's just not that bad i can understand that. things like jobless claims are so obvious, they're not hiding it's not horrible. i don't want to overplay it. it's up from 200,000 to 245,000, but i don't think it's going to go back down why don't investors care more about this i don't understand it. >> what the snowball of jobless -- once the snowball of unemployment starts, it usually gets really bad. i'm hoping it doesn't start that much we're still in the low innings of it at the moment. but people are focused on the potential for the fed to reverse course so there's a little bit of that, that plays into the game but we have seen it with the banking crisis, or i don't know what you want to call it, but where you have seen the fed have to come in and step in quickly

to abate some more deep issues i think markets sort of conditioned to believe that the fed will do that if the data really turned negative or other precipitating factors. in addition, it seems to me that the market is the most net short than it's been in some time. we may see some exhaustion there. you have one of these moments where people think this is another 2008, but it doesn't turn out to be that, you'll see a melt-up, where you will see unwinding of the really bearish positions, and we may see some of that beginning. that could explain some of the resiliency in the market, where you see the end of the line what is potentially -- maybe not as bad as people think. >> either we get a repeat of 2008 or a melt-up that you were

talking about. so for all the congressman that love to trade stocks, if you want a melt-up, giuys, how about do something about the debt ceiling. >> yes, i have sold more t bills in the last seven months than in my career. i would be glad not to do it again. as we see them roll off, investors are looking at equities and say the value opportunity here is a little better than what it was last year in markets. so i think instead of sitting on a 5% t-bill, i'm going to take my chances on something more productive that's coming from a small player like us, who works with individuals. if that happens en masse, that will further explain perhaps that markets will be able to do better in the future >> and francis, final word here. what are the ways out of this that you can foresee >> well, let me just say this. when you look at asset returns,

recession is not the worst one, kelly. as jeremy says, it usually comes with rate cuts the really big problem that we have here is central banks that say we are forecasting higher unemployment, but we still don't want to cut rates in that environment. so that's one of the better possible outcomes here, even though it doesn't feel so good on the surface what we don't want is a recession without rate cuts or stagflationary environment, that would be a bad scenario. >> where they didn't want to cut because cpi is still 4.3% or whatever great point. thank you both we really appreciate it. francis donald and jamie cox now, back in 2008, amex was an early warner of recession they werepicking up troubling signs. this morning, amex posted record revenue, and executives say they still see upside in travel and

entertainment spending but still one to have worst performers in the dow. joining me now is lisa ellis good to see you, lisa. how -- what message do you take from amex right now? how much do you like this stock? >> i love amex right now it's one of our top picks, mainly because it traded off some over the last six months, sort of in sympathy with the mid-size bank crisis but if anything, they might be an opportunistic beneficiary they pick up some incremental business with small businesses but their results this morning were remarkably strong business up 16% year on year, revenues up 23%. and it's being driven by strength in the consumer, particularly their millennial gen-z cohorts, as well as their

international segments, still recovering post pandemic so, you know, a really strong result out of amex, with the exception of expenses, which surprised a bit coming in a little elevated, putting pressure on stocks today >> lisa, i don't know if you caught that discussion we were having it wasn't very upbeat, unless there are some fed rate cuts to come when you listen to that, as somebody who is dialed into what we are hearing >> what i would say is, look, completely understood that some of the early indicators, like the manufacturing index, et cetera, that they were starting to look shaky. but from where i sit in payments land, staring at the consumer very carefully, because employment has remained healthy and the balance sheets are strong, consumers, particularly

the aftfluent an couplers are still spending they're still well below where they were prepandemic. so we have to put that in perspective, that consumer is not just spending, but the balance sheet is still quite healthy. so they're hanging in there. so i agree with your former guest, if we can navigate this through a run of the mill, sort of garden variety slowdown and not really crater it, we should be okay. >> again, that is a big difference from the household balance sheet in 2008. so many other stocks we talked about, we saw what happened with ibm. paypal, by now, pay later, maybe i'll ask you about buy now, pay later. do you think this is going to become a defunct business segment at some point?

you have seen this story about people using it to buy groceries. what do you sense about that >> it's a good question. buy now, pay later is a feature, it's not a product these businesses are -- will be difficult to succeed over the longer term. but as a feature, meaning just embedded in another consumer lending product, like part of a debit card plus kind of product, providing consumers with this opportunistically, like for specific types of transactions, there's a lot of appeal for it but usually it's for niche situations, like unexpected health care expenses or home improvement, kind of unusual big ticket items should not be for everyday spending. so understandably, they are starting to lean in on it heavily. >> although hapapple is getting

into the space and finally, you mentioned you like amex here what else do you think is best positioned in your coverage universe >> yeah. so maybe a little more controversial one, but block is one of our absolute top picks. it has traded off in the wake of this hindenberg short report that came out a few weeks ago, which held no water, to be honest, and the company came out with a lot of disclosures to refute that. and block, a key thing to know is we have their adjusted figures up over 50% year on year because their margins are improving after their overspent coming out of the pandemic and that's the number one metric that the stock trades on so over 50% upside in the stock this year, and no change expected so love that one it's a id idiosyncratic call.

>> what if block changed its name back? bring back square. >> good point. we still all over trip over saying the word block, but they kept the square brand for small businesses, which continues to do really well we'll see how it evolves over time increasingly, they're just known as square and then cashout, the digital wallet that's very popular. >> maybe that should be the new name for all of it lisa, thank you. >> thanks, kelly coming up, alaska airlines posting a wider than expected loss on higher labor and fuel costs. we'll big into the numbers on the other side of this break around a pulse check on commercial office space, and a preview of two key names on deck with earnings. as we go to break, with the dow down 38, well off its more than

200 point lows, there is the s&p 500 down to 4146 across the board except for bonds. "the exchange" is back after this 92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply.

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exchange." shares of alaska air fighting back in positive territory despite a wider than expected loss for more on the quarter, let's bring in the ceo and phil lebeau welcome to both of you phil, kick things off. >> thank you, kelly. ben, let's start with the question i think a lot of people have, which is for the airline industry, particularly for alaska right now are you seeing any softening in demand at all? are you still expecting this to be a strong spring and a strong summer >> good morning, phil and kelly, from seattle the momentum is continuing we're seeing strong demand going into q2. we saw it from march and beyond. we were profitable in march. that momentum is continuing. we're raising our guide for full-year, pretax margins from 9% to 12% in q2. wh >> given your exposure to the west coast, particularly california and the tech industry, what kind of an impact

have you noticed, especially the larger companies have announced layoffs and pullbacks in terms of spending, how much of that has hit your sales to them in terms of corporate travel? >> great question. at a macro level, we recovered about 75% on the business side with the tech sector particularly, we're only recovered 50% to 60% that is a direct result of, you know, the tech layoffs and the budget -- travel budgets coming down i would think the good news for us, i think they have reached their trough in terms of spending on travel the good news for us, i think there's probably upside going into the future. we haven't baked that into the forecast at all. there's upside going forward for the back half of the year and into next year >> are the smaller businesses, the startups truly starting up, are they traveling as much or

have they reined in their spending, as well? >> they're traveling and spending so that's what has kept our macro level at 75% so we're looking at it from that perspective. it's the corporate travel that is more depressed than any other part of our business >> ben, it's kelly here. >> kelly, go ahead >> phil, thank you so much we were just talking about southwest having this issue with its system grounding flights we spoke to the head of the pilot's union there, and he said every night he's holding his breath when they have to do their daily upgrade to make sure that it functions. what i didn't ask is why don't other airlines have the same issue, as we understand swift is a system that everybody uses >> kelly, great question what i will say is, airlines today are so heavily dependant on technology. you know, back end with all of aur operational systems, as well as front end for customers i know we have undertaken a huge

internal study to look at every operational system and make sure it's hardened, resilient and robust so we don't have these issues on the customer side, it's the same type of thing we're investing with innovation. we can get a customer from check-in at tsa, we're introducing electronic bag tags. all these systems are all technology dependant so we need to make sure that these systems are robust it just takes a lot of work, and we have a great i.t. team. they are vulnerable sometime it is you don't put the time into them >> and that's what i'm trying to get at, it's not so much just jumping all of, but to understand that you guys make an investment choice in terms of technology that paid off without you having to deal with these issues, or is this just randomly happening to just one of the airlines you know what i mean

>> yeah, and i know there's all those upgrades that happen to the systems and you have a lot of relationships with vendors. so those are the things you have to be careful about when upgrades come in so i know for us, we have a heightened sensitivity to this based on what's gone on in the last few months. i know our teams are on it every day to make sure every time there's an upgrade that we test it to the full extent possible so when we start up the next day, everything works. >> hey, ben, you're in the midst of converting to an all-boeing fleet. that means adding a lot of 737 maxes. you know boeing may have to slow down deliveries as they work through this issue with supplier, spirit aero systems. do you expect to get all the maxes you expect to get and put in the service through the rest of the year?

>> i think we're in a good spot there. we have 72 airplanes, we're down to ten, phasing out and 30 more are come thing year. the quality issue that you mentioned, we see all of our deliveries coming in we do have three eight maxes coming towards the back half of the fourth quarter we don't see that impacting our delivery stream. so we're in a good spot. just to be honest, boeing has done a great job delivering for us over the last year. >> ben, how much is going to a single fleet, how much will that drive down your costs? >> significantly it's at least $75 million a year for us in single fleet savings, primarily in the flight operations and maintenance area. so it's got just a ton of benefit for us we're really excited we know the historical benefits of going to single fleet we're excited in six months we'll be all boeing again.

it's going to be great for our people and our customers >> ben minicucci, ceo of alaska airlines kelly, back to you >> again, alaska shares, fractionally higher. coming up, tesla is down 9% after weaker earnings and a big miss on profit margins b we'll discuss all this when "the exchange" comes back after this.

welcome back, everybody. let's get a quick look at the markets and some of the big movers

we want to mention shares of snap-on, up a little over 10%. this, by the way, also hitting a new all-time high, and pretty much leading the s&p they're up 15% year-to-date after they reported that net sales are up 8% year on year so in a period where we haven't had a lot of great earnings news, this is one to highlight on the flipside, have to talk about one of the disasters, sea gate shares down after a big miss this morning. customer demand weakened significantly late in the quarter. they slashed their guidance, and it doesn't end there seagate agreed to pay $300 million for illegally shipping $1 billion of product to huawei a few years back it's behind them now, but it adds on to the pile-on we have seen of bad news for them today. let's get to tyler now for a news update.

>> thank you very much here is your cnbc news update at this hour. three people are reported dead after a possible tornado tore through coal, oklahoma wednesday night. authorities said the town, which sits about 25 miles south of oklahoma city, saw significant damage with trees and power lines down there the republican head house passed a bill that would ban transgender athletes from competing on girl's or women's sports team. it passed on a 219-203 vote, but unlikely to pass the senate. the white house said joe biden would veto the measure if it were to reach his desk spacex tested its next generation starship rocket today, launching it for the first time the uncrewed rocket took flight for four minutes, there you see it, before you don't elon musk congratulating the team on an exciting team and

teased another launch in a few months is on the way boom the rocket, designed to carry people and cargo beyond the earth, will play a critical role in nasa's plans to return to the moon back to you, kelly >> we'll have more on this looking forward to that. coming up here, lower after posting mixed results. we'll get the trades on cfx and p&g after the bell t from all over the globe. right at your fingertips. ♪ this is how we work now ♪

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welcome back to "the exchange." let's unpack a key office name that just reported and get the trades on two companies whose results are imminent shares lower today the net rental revenue missed, though let's bring in ronald camden with his take. he has a neutral rating. ronald, great to have you. welcome. >> yeah, great to be here. thanks for having me >> if i could put it this way, what is the trade on sl green at this point they have trading several dollars above what you think is pair value >> yeah, there's two key pieces.

one is the recent risk, and two is the elevated leverage as debt comes rolling, there is a concern in the market they will have to refinance that at much higher debt cost and have to put in equity to pay out principal to get that done on the leverage, sl green runs leverage much higher than the rest of the office peer group. the market needs to see a path for bringing that down so after the earnings, after the print, i don't think we have clarity on that yet. >> ron, do you feel like you're one of the most popular people on the planet yet? is there any category more discussed than office rates? >> i think commercial real estate generically and reitz specifically, this is the most busy we have been. the fact of the matter is, we all found out of the events over the last three to four weeks that the banks, specifically the

small banks, are the biggest lendors on commercial real estate so if they are tightening standards, that is a downside risk i think given the elevated leverage has been a hot topic. >> does it make sense to you and when will the head winds relent? are you facing many years where it looks like we'll have pressure on the companies that you cover in >> very good question. look, i think the debate is different for the west coast versus new york. you think the fundamentals on the west coast, they are the worst that we have seen it in terms of occupancy levels, and so forth so that's where we're the most bearish when you think about downtown l.a. and downtown san francisco, downtown seattle. when i think about manhattan, to your point earlier, it's a

little bit of a slow bleed where you transfer value to the debt holders. so as debt rose, you're going to see more of these reitz being forced to put capital in through equity or through sort of higher interest costs >> that's why -- and we have seen the results there obviously. just before i let you go, if there's two parts of this whole industry people have loved, cell towers and self-storage, any reason to think those might not be resilient places to hide while we wait on an uncertain ima macro? >> good question exr is a good company, but the stock is fairly fully valued and the expectations for growth look a little too elevated to us. going back to the point on the office side, look, i think this is -- real estate is a

slow-moving industry, so i do think that there is potentially more downside as we find out the full extent of the tightening lending conditions coming from the banks. >> thank you for your time today. we appreciate it >> thanks for having me. so that's the preview. let's get to csx, reporting tonight with the stock down 13% over the past year, as the transports doesn't help that jb hunt said we're in a freight recession. boris here is with the trades today. welcome, boris here is the question on csx. what do you do with this stock or the space in general? >> hold. i think csx is a pre-eminent transporter in the space you know, they obviously control a lot of it. basically rental freight is still going to be the dominant way things are going to be moved from a to b.

even though there may be a recession right now, as long as the economy holds up, you'll see much more downside on csx. it's not cheap, i don't love it at these prices, but if you have a three to five-year time frame, it is expected to grow about 10% over the next five years so i think it's still very well managed. one idea, if you are a trader, is to sell the aug of 30 puts and buy it cheaper around the $28 level, where there is a lot of support there from a price level point of view. you will put yourself in good hands when you do that you will have a relatively decent price the yield on the stock, 1.5%, so it's not very attractive overall, i think it's a very solid, steady stock if you are going to be positioning it to the transports >> all right finally, tomorrow p&g report before the bell. shares are flight. i see you -- shares are flat people want the defensive stocks but they're so expensive

they want the dividend, p&g has had a history of hiking it, buying back stock. >> i'm shaking my head in admiration >> i see, i see. >> because this is the ultimate widows and orphan stock. it's the preeminent consumer goods company. downey, tide, dawn, all brands to which consumers are fiercely loyal to they've been able to hold off any of the private label onslaught against them and this is a bet on nominal wage growth. i think if you got nominal wage growth at 4.5% over the next year, year and a half, they have a lot of room for a little bit of upside price movement on all of their stuff of course, they will be able to save a lot more on sourcing. so there is a chance here they could expand their margins without hurting consumer demand.

you do have to have a longer outlook. it's one of those lifetime stocks >> why do the s&p when you can just do p&g? put it in your 401 k boris, thank you so much appreciate it. still ahead, tesla's price cuts are squeezing the company's profit margin. net income in earnings were down sharply. shares are tanking today as a result down almost 10%. did they just set the tone for what to expect for tech earnings overall? we'll look at why the answer might be yes, after this

shares of tesla are down almost 10% today as investors digest the first quarter results. they were in line, but net income down 24% from the year previous, and profit margins are getting the attention. diedra has a look with more. >> you just showed tesla's stock price, but i want to point to these two charts from tesla.

they tell you what the bears are worried about here the red line that you will see is tesla, the gray one is the auto industry, where we go in terms of revenue growth and operating margins, that red line leading by a wide margin but the gap, it is narrowing so tesla is getting less profitable, while rivals in the space are getting slightly better on both fronts. so that is why shares are down and worries that this trajectory will continue as tesla faces more competition in north america and in china more broadly, kelly, margins are likely to be the story for the rest of big tech next week it's another business that like tesla has enjoyed better profitability and dominated the space for years. it's seeing more pressure amid greater competition from microsoft and google and its margins are also being squeezed from 30% in 2021 to 24% last quarter

revenue growth is also slowing so this is a trend that we could see not only at amazon but alphabet, meta, and even apple >> when we -- we heard from netflix and ibm. it's going to get busier, though >> next week is the super bowl week when we get it all, when we are not sleeping very much and listening to all the earnings calls and going through the numbers. >> tesla certainly has its work cut out. diedra, thank you very much. up next, disney dishing out another blow in its battle against governor ron desantis. we have the latest and the political fallout within the gop, that's next starting a new chapter can be the most thrilling thing in the world. there's an abundance of reasons to get started. how far we take an idea is a question of willpower.

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welcome back, everybody. revenue from this tax season has fallen short of expectations and that's pushing up the date the u.s. could default on its debt until early june kay la thas th

latest >> reporter: updating the so-called x date for the when u.s. could exhaust these extraordinary measures in the meanwhile house speaker mccarthy formalizing his debt ceiling approach the limit save grow act lift the debt limit through march 2024. cap spending growth and eliminate democratic programs like student debt forgiveness. president biden and democratic leaders say that they will sit down to negotiate once republicans have a plan they agree on yesterday in a speech mr. biden slamming the proposal as a blunt instrument that would hurt everyday americans and today senate leader chuck schumer said the bill wouldn't advance in the senate. there's one last resort plan emerging from the house problem

solvers caucus, a bipartisan group of 63 lawmakers. here's the group co-chair this morning. >> we need to look to our leadership first and hopefully sit down and work this out we offered a backup plan in case things don't work out. but we agree on we can't afford to default on the full faith and credit of the united states and put our reputation and people's savings at risk. that's not acceptable. >> the white house will not negotiate over default the press secretary took direct aim at several specific house republicans challenging them to vote for the mccarthy proposal and risk losing jobs in their districts. >> we're getting questions about whether the house needs to pass a budget kind of -- a revenue bill so that if we get they have

this legislation piece to go from something like that are the stakes higher than usual? >> well the stakes are always very high in these scenarios usually they get very down to the wire before there's any sort of compromise. 2011 august, one particularly dangerous example, but you know what both republicans and democrats have sought to do is to decouple the budget and the debt ceiling process they both say the two should be separate processes but they just don't agree on exactly what those processes should look like >> kayla, we appreciate it. political fallout between florida governor desantis and bob iger's disney. there's reporting that disney is upping its lobbingying effort. it will break down on affordable

housing. brian schwartz is here to discuss the latest juicy, you could say a soap opera of sort. something that's actually raising serious problems within the gop. >> from what we're hearing, a growing group up until this point of very wealthy gop donors interested in backing ron desantis, we've been hearing for days really since this latest sal voe in the battle between desantis and disney they're now stepping back and really having second thoughts about this they're looking for alternatives like tim scott from south carolina they're looking for this alternative to donald trump. >> i saw politico ywriting abou chris christie again desantis' position on this, he's doubling-down on his base, when they say no, you need to broaden

out the message. >> to me at the end of the day if you look at corporate america who lean more to the right they've been telling me since the end of donald trump's tenure as president they've been looking for that winnable candidate not only win a primary but in a general election likely against president joe biden. when you see these tactics strong-arm tactics against disney, that really is not going to appeal to more wealthier republican donors. >> well, because 2016 was the message with the wealthy republican donors what wanted won. desantis is not trump. could he deliver that? >> i really do question if there's data from the desantis camp that show shows that a base

voter, if he runs for president like new hampshire that voter is favor of, taking on a company for whatever reason the government wants to take on, possibly impacting that company who's a major job creator. if that interested a base voter, if the desantis campaign or surrounding pact have something like that. >> it looks like as though it's causing some headaches the question becomes how the debt ceiling enters into all of this a time when people are going to dig in their heels politically speaking, the debt ceiling to me seems like it's coming up even worse than it did last time around, the fact that we all lived through this >> we've seen the government, federal side, go down this road

and we come back on the debt ceiling every time this time it feels like we're going down a path of a big problem. but we'll have to see. the republicans who are trying to take on joe biden in their own ways preparing for 2024 there's a question of again if they go down this fighting bide on the debt ceiling, is that going to help or harm them >> what's desantis popularity in florida right now, what's the general consensus in florida about the extent to which he needs to stay after disney on this issue because it's been a while now. >> i think that, you know, i think it's fair to say if you're a desantis supporter who he won overwhelmingly you're still a supporter of him in florida. the question then goes, what happens outside the state of florida? to your point in his state i'd bet he's still very popular despite going after a major job creator like disney.

>> thank you, brian. for more head over to cnbc.com > at does it for "the exchange." >>if you're a dog lover, you might want to sit this one out

welcome to ""power lunch." everybody. alongside kelly evans. one stock's warning you may not have heard about, but could be telling a very important story for the markets. >> well, plus, a spectacular failure or is it spa