coming from the government. >> we began the show with the lawsuit filed by disney against florida governor ron desantis. >> stay tuned on that one. >> thank you for watching "power lunch. >> get your picks ready for the stock draft tomorrow "closing bell" starts now. welcome. we're live from the new york stock exchange we begin with a mixed picture on wall street. nasdaq a bright spot still regionals remain front and center as first republic continues to get hammered. disney suing florida governor ron desantis. jim stewart joins us shortly. we begin with the talk of the tape and meta magic.

meta reporting results shares climbing 80% already this year execution of szuckerberg's year of discovery joining us now is george george, you own shares of meta the bar has been set high. what do you expect >> it's been a nice ride and we're hoping it continues. also, microsoft and google, i think they all appreciate the strong performance of these companies. it's amazing how they keep delivering incredible numbers quarter after quarter.

it was a sight to behold yesterday. >> are you saying that the read through from google specifically for meta it's all about advertising growth and potentially more cost cutting. >> meta has been a fun company to hold the last six to seven months it's been an elevator ride straight up. they have to execute and try to grow their revenue stream and keep costs down. we'll find out how good their management team is because they have a lot of challenges ahead on their drive forward >> i feel like optics will be an important measurement. bren, you're the happy shareholder of microsoft today >> i think what you're seeing is these companies are -- when you look at the top three, microsoft, google and meta, what we saw today is that microsoft is operating on all cylinders.

they came out so positive. mentioned ai right off the top their platform is so unique, relative to an amazon and google those two have cloud businesses. google just turned a profit this quarter with cloud cloud google is about 9% of revenues, but 25% of workforce they've been losing money. they just became profitable. microsoft on the other hand is a cloud company. they're an office. they are gaming. they are linkedin. >> and they're ai. >> they talked about embedding ai throughout their platform already. to me, this was a watershed moment for microsoft going back to 2000 there have been two companies that remained on the s&p from then to today.

that's j&j and microsoft >> we're hitting session lows right now. even the great tech earnings could not propel this market without microsoft and invidia -- there's the nasdaq it's still up, but the s&p 500 is down 5% >> the fdic and the treasury and fed decided silicon valley bank was systemic so they saved all the share holders. >> not shareholder. >> depositors. sorry. over 400 banks have gone under and those depositors only got about 70% back i think first republic is collateral damage.

i think those depositors left the building the market is back to saying what is the fed and fdic going to do. first republic is going to be a weakness and an elephant on the stomach of the masrket >> the market is focussed on this now sub billion dollar regional bank, which clearly has similar problems to silicon valley bank. it was holding those assets to maturity they've got issues now about what they're going to do next. is there a systemic risk to the overall market, to the outlook as the market is treating it treasuries are rallying again. >> there's not you'll see a case study some day on first republic and how you don't handle a banking crisis. they had a conference call yesterday where they took no

questions and shut it down in 15 minutes. secondly, they should have done a bear hug with some gigantic bank as soon as things got sour. there was no way out the fact they weren't aggressive enough is malpractice on management they've hurt their share holders and the share holders will be lucky to come out with anything. it's limited to them they were the wrong place in the wrong time. >> i agree what a way to piss off share holders by not doing questions the two-year is rallying the ten-year yields are firmer today. we saw a big rally yesterday what do you do do you add exposure in tech because you're enthusiastic? >> i think you've seen amazon still up 30% today facebook is up 80% microsoft is up now probably 25%. >> have the gains been made for

the year >> i felt the majority of the gains for tech have been made. this is what's hard. no one liked tech last year. you can't own it this is why it's hard to time the market the trade action was to sit still last year. sit through that pain because you enjoyed this reflation after apple, i think there will be repositioning if you don't own microsoft as a portfolio manager, you will have that next quarter. >> is that the only one? what about apple >> we'll see apple next week apple could be the cleanest earnings with iphone 14 pro, that's not an issue they could have a clean we'll see about amazon that's the one i'mt with earnin

tomorrow we want to hit activision blizzard shares were downft the top uk $95 price target they entered pre foannounced an the numbers look okay. the action signals no deal >> definitely no deal. of the three regulators, cma was probably the most important. this could outright cancel it with no way to come back on it they can appeal it the appeal is always on technicalities, not the core deal we looked at five-year history couldn't find anyone that got reversed we think the deal is likely dead it will take time for activision and microsoft to admit it. >> what is activision worth as a

stand alone company? >> if you give it a multiple on our estimate, $80 stock. there are some really big near-term catalysts. they're sitting on $13 billion of cash and they could easily do a buyback. they have the biggest game launching this year in june. that could push numbers higher you know, in the near term it's a very interesting stock here from probably 76 up to the mid 80s. >> i mean, microsoft, the biggest losers are activision share holders and the mergers and acquisitions hedge funds that will go short microsoft and long activision. you had microsoft rally so hard after earnings and this happens. they got a double whammy. >> wasn't buffet in activision because he thought there was opportunity?

>> if he was, that would have been a wrong trade. >> george, what about you? you taking a look at activision as a standalone? >> i own it, sarah we shorted the calls on it at 90 bucks. if it dips below 70, we'll be buying aggressively. we really like the business. there's a reason microsoft was willing to pay 95 bucks for it it's a great business. microsoft's management is the best in the world right now. it's a great company. >> i wonder about the missed opportunity to get activision into ai video gaming if ai is going to permeate every technology, they would have had a big leg up under microsoft's roof, wouldn't they? >> yeah. ai has been part of gaming for a long time. they've been doing maps and world building for a long time being a part of microsoft, absolutely they'll have a leg up this is a technology that's been permeating games for a long

time we never talked about it until chatgpt. it will benefit probably everybody and, you know, probably drive down costs, but the best creators will find the best use cases for it. you know, they would benefit activision has some of the best game developers on the planet at blizzard and call of duty studios. >> what did we learn about guidance today and what they're expecting? >> there's a bunch of noise on the numbers. you have a management team that doesn't really need to give guidance or disclose a lot because they were being acquired they put out very conservative guidance there was some noise around -- remember back in january they exited china due to a lost deal. at the end of the day, the numbers were good enough you know, if they have to go back to being a public company, you'll get a lot more color around that pipeline and to the

other guest's point, there's a lot to like here. >> bryn, as a microsoft shareholder, what would you like to see microsoft do with the $67 billion in cash. they have a $3 billion breakup fee, but there's opportunities. >> huge opportunities. they're gaining -- their game path posted almost a billion in subscription this year i would like them to put some money into gaming. gaming is very underdiscussed. it's growing 20% a year globally americans and europeans are the only ones that play consoles cloud gaming is a huge opportunity. >> they start them young thank you all. don't miss an interview with the ceo of activision bobby kotick tomorrow morning. i'm sure he had harsh words for

the uk regulators. our twitter question of the day, with strong earnings from microsoft and alphabet, will meta beat estimates? head over to cnbc closing bell on twitter please vote. we're just getting starting on "closing bell." up next disney versus desantis the disney giant sues florida over government retaliation. jim stewart who wrote the book on disney joins us next. the dow is down 211 points, you're watching "closing bell" you're watching "closing bell" on cnbc. 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.

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trading day. information tech is the only sector green right now let's get a tip on top stocks to watch. kristina partsinevelos with that >> ev startup. fisker just got the green light to start delivering its ocean suv to european customers. that's why sharing are soaring 20%. old dominion fright line is tracking for its worst day after missing earnings and revenue estimates. they cite continued softness in the domestic economy and the challenging operating environment. we're seeing u.s. transportation iyt also lower with smaller names in freight and logistics under pressure ryder down 6%.

dj transports 2.5% sarah? >> kristina, thank you. breaking news. disney is suing florida governor ron desantis over what disney is calling a relentless campaign to weaponize government power it comes the same day the governor's board nullified two agreements that gave disney control over its resort complex. the standoff has been going on since early 2022 when disney leaders kcriticized the don't sy gay bill advanced by desantis. joining us now is "new york times" columnist jim stewart he's followed this saga. jim, this is quite an escalation what does it signal? >> this is pretty stunning to me this takes this thing out

of the realm of political theory and into a realm where there will be economic, not to mention political, consequences. disney is drawing a line saying we're serious. we have the resources and we are got to wrap ourselves in the american flag and go to battle. >> who has more to lose? >> well, that's a good question. i mean, one of the incredible things about this feud to me is -- what makes it seem so crazy is that both sides have such common interests. it the better disney does in florida the more money it makes, the more people it hires, the more taxes it pays that's all good for florida. what's good for disney is good for florida and vice a versa why are they at war? who has more to lose here? disney benefits from many state

policies there, including tax incentives that have not been revoked. desantis has certainly been threatening to impose very serious economic costs on disney for doing business there it's not going to wipe disney out or eliminate the profits from orlando it could be quite substantial. disney is worried about that and has the right to be worried about that for desantis -- look, i'm not a political expert, but, one, his base -- to the extent there are people who don't like disney and thought they were woke, he got them he delivered for them. that's over. why is he doubling down? i don't think he's going to be gaining any marginal voters by escalating this war. i think on the national stage, if he's going to make a run for the presidency, i can't imagine he wants to be at war with disney disney in the complaint said

they tried to resolve this peacefully and had no luck when you read his rhetoric, it's pretty extreme. >> right actually, to your point about what's good for disney is good for florida, he has more national ambitions, whether he announces or not you wonder how it's going to play i remember asking michael ieisnr about this and he said, you really want to be at war with disney politicians don't want disney weighing in on don't say gay bills. >> i wouldn't call disney a woke company. let's remember why they did this they initially did not take a position they have a lot of gay

employees, a lot of employees who care about the issue it was an employee moral issue it didn't have any effect on the legislation. it passed. why is desantis so enraged that disney took a position on this retaliation has nothing to do with education disney is not an educator in florida. there were hundreds of companies that took the same position that disney did on this bill and they're not getting retaliation. >> i do wonder, jim, the fact that disney and iger continue to stick up for the company -- like, they could be quiet and probably still have the upper hand as we saw with the committee. the fact they're doing a lawsuit, i wonder if it's more impactful financially to disney

than maybe initially thought. >> well, what they stress in the complaint is it puts a cloud of uncertainty over future developments where does it stop if the state of florida at the whim of the governor can step in there and nullify contracts, put taxes on them, transportation, all kinds of taxes, and maybe build a prison on land next to disney, that impairs their development plans. they say they were going to spend $17 billion in additional capital and hire 13,000 more people in the next ten years, but clearly they're implying unless they get some certainty going forward, that's going to be in jeopardy i think they have real and legitimate concerns and with the governor hanging over them, they can't invest in the future.

>> i'm sure a lot of businesses are curious about this lawsuit and wondering if governor desantis has a political future, would there be retaliation from government >> disney said they have the resources to actually fight back and to stand up in court they say they're doing this on behalf of the many smaller companies and businesses who could be threatened with that intimidation who don't have the reso resources. they're striking a blow for business interests, for the sanctity of contract and especially striking the blow for the ability of companies to make statements on anything they want under the first amendment without retaliation from the government they make a very persuasive case this is retaliation. all this happened is because he was angry at the position they

took on this bill. it's like he singled out disney because he knew he would get publicity. the other companies, you won't get the national traction he's getting. i don't think it's disney who didn't bury the hatchet. he keeps threatening them with more severe punishment >> let's see what he does next in reaction to this lawsuit. jim, thank you certainly getting interesting. jim stewart. >> definitely. up next, earning season shedding light on the state of consumer spending. how can investors best trade we'll discuss. plus, slowing sales slamming energy it's weighing on the rest of the solar space. a rundown on those moves straight ahead we're down 266 on the dow.

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this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight. first quarter earning season shedding light on the health of the u.s. economy with a number of business leaders sounding off

on the state of the consumer visa ceo says the consumer is still in good shape spending across travel and entertain. then chipotle says it needs to rebound yesterday. >> we saw the lower income consumer, households earning less than $70,000, slow down about a year ago we've seen a little bit of uptick there, still below where we were about a year ago then we continued to see a lot of strength in the higher income groups >> within the past few hours hilton's ceo says he's seeing strength across all of hilton's business. >> leisure travel in the quarter continued to be very, very strong, both from a volume and pricing point. business travel made its way back finally from a volume point

of view to above peak levels of 2019 and pricing is quite strong >> for more on the strength of the consumer, let's bring in victoria fernandez she owns a number of these consumer stocks. are you getting a clear message on the state of the u.s. consumer if so, what is it? >> i'm not sure it's particularly clear, sarah, but i think we're hearing that the consumer may not be as strong as they were six months ago or a year ago they're still decently strong. that's going to be supportive of this economy, even if we think a recession is coming later. that's going to help it be a mild recession if you look at household balance sheets, they're still quite strong even as some of the stimulus money has been brought down you take the financial strength of the consumer because wages are up 6.5%, the job market looks good and you add to that

the sentiment component. we had consumer confidence numbers come out the current condition numbers stayed strong. you combine those two things and you have a consume that although they may not spend as much as they did, they'll spend maybe just down the pay scale. >> it depends where they're spending the best consumer commentary for me this week has come from coke and pepsi and mcdonald's and even hilton. we know travel is super strong those are consume defensive groups which have high inflation and consumers are prioritizing you own a number of retailers, lowes and other discretionary things is that riskier? >> it can be depending on the names. you mentioned tjx, they're a leader if you have consumers looking to spend less on items, tjx is

where they're going to go. when you combine that with a balance sheet that has growing revenues, growing earnings, good cash flow, then that's a name you can add to your portfolio. you have the same thing with lowes. before we would have held home depot. we thought they had better management they were doing better in stores lowes is doing well. with housing turning around, we have strong housing numbers. you have the do it yourself people going in there and they're building their pro business it's a name you can put in your portfolio and build on and the consumer is going to shop there. >> i'm looking at other cross holdings and your personal holdings, it tilts defensively mcdonald's is in there chipotle is in there kroger it seems like you're on that theme of consumer spending.

>> we think we'll get a recession later this year. we think as the -- we think there will be a .25% basis hike next week. even with the labor market strong and wages growing, the consumer is going to get crunched they're going to do some of these more staple type purchases. kroger, yes, they've done great e-commerce throughout covid and they're benefitting from that, especially if people eat at home more coke, pepsi, we own both of those. people are buying there. you can take a little bit of a defensive posture like we're doing, but still support the con consumer they will be the foundation that holds the economy through a recession. >> consume staples have done really well. victoria, thank you. >> my pleasure. speaking of the consumer, don't miss chris cox tomorrow with me at 11:00 a.m. earn we'll hear from mattel after the

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♪ ♪ markets deteriorated a bit this afternoon let's send it over to pippa stevens. >> solar stocks are under pressure, dragged lower. those shares creating more than 26% and having the worst day in more than eight years. the ceo said, quote, we're not growing in the u.s he pointed to rising rates as the primary reason bank of america saying we thought the worst was behind us. we were wrong. key bank, jpmorgan, deutsche bank cutting their price target on the stock they're driving down other solar

names, all of which down double digits >> pippa, thank you. let's get back to kristina partsinevelos with some key stocks to watch. >> i got to talk about chipotle. they beat estimates for the first quarter. that's driving shares 13% higher what happened? the company was helped by more expensive menu prices, inflation, 40 new restaurant openings and lower income customers heading back into the stores chipotle's base is higher income customers and they continue to buy bowls and burritos pack west moving higher today after they reported deposit inflows. that's giving investors some comfort. we may as well check first republic right now shares are down 30.5%. that follows a number of volatilit volatilities

bloomberg reporting the bank could see limits placed on its ability to borrow from the fed year to date down 95%. >> i think it's a good sign pack west is up shows first republic is in a league of its own. kristina, thank you. last chance to weigh in on our twitter question with strong earnings from microsoft and alphabet, will meta beat estimates today? head over to cnbc on twitter we'll bring you the results right after the break. what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns...

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let's get to the results of our twitter question with strong earnings from microsoft and alphabet, will meta beat estimates today? 54% to 45%, pretty close we're minutes away from that report in overtime we'll tell you the metrics to watch when the numbers hit the tape that and much more when we te ak you inside the market zone how i miss the market zone that is next as sleek as it is spacious. as smart as it is beautiful. introducing lucid air. experience the best. ♪ ♪

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we are now in the closing bell market zone mike santoli here to break down the crucial moments of the trading day. jpmorgan private banker is here. mike, the markets, couldn't hold the gains. even big tech and ai couldn't come to the rescue of this market not extreme selling like yesterday, but it's softer only tech is higher. >> there's a bit of a loss of nerve over the course of the day. maybe too many reasons to stand back away from the riskier parts of the markets with what's going on with first republic small caps have just been too weak relative to the mega caps

to encourage any idea that there's risk capital going into -- looking for value. if anything, it's the expensive, perceived, reliable stocks that are working, whether chipotle or microsoft and anything that looks cheap, people are as souassuming it's cheap for a reason. it's people just trimming back and seeing no real reason to get excited ahead of gdp and the fed next week. >> the carry is higher today it's not dragged down. >> a bit, yes. >> there's still weakness in first republic investors are looking at a mixed quarter from boeing, cheering on plans by the company to keep building the 747 max bill labeau is back with that. >> there's a trio of good data

points for 2023 they reaffirmed guidance to deliver between 400 and 450 airplanes. then the goal is to hit 50 per month by 2025, 2026. here's ceo dave calhoun talking about robust demand. >> the orders are exceeding five years of demand. it's a robust moment our job so to not get too far ahead of ourselves. >> if you're a boeing investors, they reaffirmed their free cash flow guidance between 3 and $5 billion and projected hitting $10 billion by 2025/2026. >> what did we learn about the latest production delays

any new information there? >> there's no new information in terms of what's happened aside from the fact that they said for some time there will be some 737 max deliveries delayed and deferred we've known that the question was would those delays bring down the overall delivery guidance for the year which has been 400 to 450. they said today there will be some delays, deliveries deferred, but they plan to hit 400 to 450 this year >> strong orders, thank you, phil meta earnings are moments away let's get to julia with what we should be watching >> mark zuckerberg said this is the year of efficiency now we're looking to see if meta can accelerate its revenue

growth earnings per share are expected to fall by 25.5% in addition to watching top-line growth, investors are focussed on ad market weakness, meta's progress monetizing messenger, as well as investments into the ai space, as well as the metaverse. the stock is up 75% year to date despite those gains, analysts are bullish. 71% of analysts have a buy rating on the stock at 20% >> as far as growth, julia, where's this company, especially coming out of a higher bar set by google yesterday? >> the question here is not only do we see revenue quarter down 1%, the expectation is at flat, or can they show revenue growth? last quarter the company showing declining revenue growth, but

better than expected revenue numbers. it was not growing accelerating, but was better than anticipated. what kind of outlook will we get for the rest of the year can they give us a sense of whether there is momentum, whether there is a positive trend and how much the overall ad market they see strengthening going into the second half of the year that's going to be a real focus here remember, mark zuckerberg talked about layoffs and how they'll be more efficient what does that look like with earnings expected to be down 25.5%? will they see the benefits of those cutbacks >> mike, i wonder how meta's stock setup looks to you feels like positioning is a factor here with the giant run the south side loves this stock right now. feels like everybody is owning it. >> you had the crowd come back

in behind it i saw numbers saying positioning wasn't as extended as it was i think people have bought into the margins, the cost cut ideas and the return to something approaching 10 to 20% growth next year. next year is a long way away there has to be rebuilding because you brought the stock back to about 20 times forward earnings multiple. i think that's going to be the equation right now it's not just that people have -- overlove it, but they bought into the margin story and they want to see confirmation. >> mike, tomorrow we'll get gdp and jobless claims which feel important going into a fed meeting next week where the debate is is it going to be the last hike? what are they going to do from there? how badly is the economy hurting

right now? >> today's durable goods number was an upside surprise seems like that muddle through scenario for the economy is in play also, today doesn't seem about a tantrum about bad earnings, as much as it's about the stock market seeming like it's got this deferred selling. we got to the high end of the range. couldn't do anything with it on a technical basis. we're seeing if we can hold that 4,000 level given how narrow the runup was on the s&p i think the gdp matters. people have to be asking themselves, s cyclicals have ben weak. >> and further inflation showing

prices are moderates mike santoli, thank you. mike is hosting "taking stock" at 6:00 p.m. nasdaq is on track to snap a two-day losing streak. elise is here. what do you do with all of the negativity and risks that are piling up in the market? mike discussed some of them. there's a debt ceiling out there. hard to know where that's going to come down earnings, which are not bad, not a lot of guidance cuts. >> it's the macro overhangs like the debt ceiling, like what's going on in the banking sekcsecr we're approaching the market as being defensive, but not fearful. there's some more opportunistic

areas. >> does that mean you're defensive in the stock market as well groups like staples have worked really well and some say are getting expensive? >> we think staples are defensive. we talk about being defensive and that doesn't mean gravitating throughout the conventional sectors we're talking about market exposure with downside protection, leaning into areas that we think took their medicine last year it's that core bond allocation that we're using >> interesting semiconductors, they're pretty cyclical. >> absolutely. we saw them take their medicine in 2022. we think the valuation that investors were getting was offering a buffer. that's an example of where we would be leaning into risk because we think they're getting the appropriate compensation. >> a lot of people would say they took their medicine on

higher rates so the multiples got hurt last year, but not necessarily on recession. >> not necessarily on recession. we want to make sure we're not on our heels as the cycle resets you can't underestimate the importance of interest rates easing we really want to be on our front foot and starting to think about ways to position for the next one. >> what if powell doesn't signal he's ready to pause next week? will that be a disappointment for the market >> potentially the market is expecting may to be the last fed rate hike. at this point people are understanding the uncertainty that comes with the fed. when we look at the data, we think the fed is getting closer and closer to that moment where they'll feel comfortable pausing. >> overall equity exposure right now, if you think the fed is at

an inflection point, doesn't that bode well for stocks? >> yeah. we have see upside from here we're cognizant of the fact that earnings expectation are more constructive than our base we want to approach it not with the wool over our eyes and pick and choose our battles in the exposures we want. >> what about the debt ceiling >> we are expected the debt ceiling to come down to the wire we're trying to figure out when that x date is going to be we're preparing clients for volatility for folks concerned about it, we're helping them to hedge or put on other defensive exposures. gold is one of those. >> using it as a temporary issue? >> temporary, yes. >> elise, thank you. >> good to talk to you we're going into the close s&p down a third of a percent.

dow down 200 points. the nasdaq is up, in large part due to microsoft, invidia and meta that does it for "closing bell." i'll see you tomorrow morning. now to "overtime" with morgan brennan. >> a lot of red marks for wall street i'm john forte with morgan brennan and mike santoli is here our reporters are standing by to bring you results from meta, roku, ebay and service map. we have an exclusive interview with the ceo of norfolk southern. let's start with today's