(cecily) okay, that's a brag. (seth) hey, mom. i gotta call you back. (vo) switch and choose the phone you want, like the incredible iphone 14, on us. (cecily) on the network worth bragging about. verizon ♪ welcome, everybody welcome to "power lunch" for a very busy monday and a very busy week alongside kelly evans. i'm tyler mathisen jp morgan buying first republic. big banks getting betigger, is that a good thing? we'll debate it. new mortgage fees, we'll separate the fiction from the

facts. norwegian reporting strong demand and pricing for this year and next is the stock finally a buy we'll get to all of that kelly, over to you for a check on the markets. >> thank you, tyler. hi, everybody. the dow is up 71 points. s&p at 4181. nasdaq has gone positive by 42 as well. jp morgan higher, one of the best banks today after rescuing first republic it's kind of muted it's come off the highs a little bit. pnc did not get the bank that stock is moving lower gm is rising adam jonas is 38 it's a 33 right now. the company cutting hundreds of jobs in product development. shares are up less than 2% norwegian, strong earnings look at the five-year stock chart. nowhere near prepandemic levels. it's at 14 and change today.

>> thanks a lot. we begin with first republic jp morgan chase acquiring all its deposits and a majority of its assets after regulators took possession of the bank jamie dimon declaring this part of the crisis is over, but others still have concerns >> this is what was expected, but i'm surprised that it took this long to get here. the question is, have we created the new moral hazard and the moral hazard now is, never buy a bank until it goes -- >> at the end of the day you had to go to papa jamie and, you know, put more than 10% of deposits of the united states of america into one bank. it does speak to the situation, i think. >> we're making the big banks bigger we're changing the conventional wisdom about what is a safe bank it turns out that the banks were once viewed as too big to manage

are now the safe facts >> the fed making a major interest rate decision on wednesday all while the markets seem to be increasingly tippy top heavy. we have a round table to bring it down. we have leslie picker and steve liesman. rick santelli and lead writer at "the wall street journal." good to have all of you here leslie, what about that point that gary cohen made on moral hazard you won't buy a bank unless it's first in receivership. >> that's an incredible point. it goes to show exactly how we will looking at these situations moving forward it's clear, and you can see it in the stock price reaction, all of the wall street analyst coverage from today, jp morgan got a good deal here this. was a good situation for jp morgan to be the winner of these assets, of these liabilities and so he brings up a good point. what is to -- to have a private

capital market solution ahead of time when you can get it out of receivership you can go above your threshold as a result of that and, you know, from a financial standpoint, jp morgan is looking at an -- >> is the 250 $250,000 fdic cove a moot point now >> they do care about it there will be smaller banks -- >> they were rescuing the banks, weren't they, in part that put 6 billion, 5 billion, 6 billion in a month ago. >> i think it's a great point regarding these specific situations which grew at a really rapid pace. they had a specific concentrated groups of customers. oftentimes they were start-ups in the case of silicon valley bank in this case, it was high net worth individuals. they had a large concentration base that was above that threshold. there are discussions with the fdic, there was actually some news out just a chart while ago about their decision to -- or

several options that they're floating with regard to reforming that level of insurance, but historically, that is what matters and there are smaller banks that fail all the time that do have to abide by that. >> steve, let's turn to the fed which is meeting starting tomorrow and the results will come out on wednesday. do these bank wobbles matter to the fed and what they do on interest rates as opposed to what they do with regulation -- >> yeah, i think there's two ways that it matters i'm wondering now if maybe they want this thing resolved before the wednesday meeting as well as by sunday. obviously they try to get these things done on the weekend i think it matters to the extent that there's potential systemic risk from this and i think they look at this and they see something of a green light to raise rates because it doesn't feel like this is wider. there may be other banks if they can be handled in such a way which is my one concern with

jp morgan. which is jp morgan, papa jamie, or uncle jamie, is this where we want to use jamie? is this the bank we -- >> is this the bazooka >> right if you're trying to sort of finesse the king in a game of bridge, you don't play the ace until you've seen the king if jamie is the ace in this case, i'm not sure we wanted to play the ace here. maybe that's okay. if that's a -- that's one. and the other one, though, is that the fed is going to consider this longer-term risk or effect of tighter lending standards. that's something that the fed needs to weigh i can give you a heads-up on our survey tomorrow, everybody thinks the fed is going to hike but a lot of people think the fed shouldn't hike. >> the market reaction is telling. what does it tell you? >> well, the market is still behaving as if the stress in

regional banks is beyond that phase where we have to worry about day-to-day liquidity issues and a stampede of deposits it seems to be somewhat segregated from the rest of the market today you have consumer cyclicals and industrials that are generally up on the day, even with the banks give up 2% in trading and then as it really gets integrated into the fed outlook, the way the equity market seems to be approaching it is, the crisis that was touched off in early march, gave us back 25 to 50 basis points of hikes that we might otherwise have expected. that could be wrong in the end right now, that's the premise. and the question is, at what cost and if we don't -- we don't know the cost in terms of credit contraction. we know that jay powell conceded in the last press conference that they considered pause and there's going to be some effect of these credit issues

but we don't know what economic numbers coming in better than expected it seems like activity levels have been warmer than feared and so today, even, when you got the better economic data, better than expected, not necessarily great, you see yields drift up a little bit you see us brace for, can we pause or not i think that's going to be the push-pull that we're in for a little while right now, i don't think the market feels this is going to be, okay, who is this next that game that we remember from 15 years ago. >> one of the topics that we've got our eye on is how concentrated the stock market's performance has been in a few -- in a handful of stocks, five to ten of them. how do you look at that particular sort of state of affairs? >> thanks, tyler it's fascinating looking at the market, you wouldn't know there's a banking crisis going on that first republic had just gone under i think a lot of investors did breathe a sigh of relief with

some of the tech earnings that we saw last weekend and that helped drive the market higher and i think i almost wonder if apple's earnings this week are going to be more consequential for the market than this bank failure, than some of these other things going on at the regional banks and i think that's because a lot of investors are kind of flying blind when it comes to gauging the fallout from these banks in terms of lending standards and their impact on the economy and they're taking solace in the fact that maybe the fed will pause after this wednesday >> interesting to see citizens there down 5%. pnc down 5%. trying to figure out, what are the next moves maybe we're waiting for the next domino to drop or maybe we will be again after the rate hikes. they think the crisis will make the fed less hawkish down the road after friday's inflation data

and everything else that steve is talking about, maybe they'll hike even this week and maybe again in june. >> i think what you said last hour -- and i was nodding in agreement with you -- is this idea that the people who are banking experts, the analysts on wall street, the ceos, the people who are in the c-suite, they think this crisis is largely contained. dimon himself said this phase of the crisis is over i don't know what that entails for what the next phase looks like or whether there is a next phase. on the other hand, you have investors saying he thinks there will be more that comes from this a lot of hedge fund managers, they're like, this is not over we're very concerned about a credit crunch here we're concerned about liquidity. from the investor perspective of things, it does seem like there's more concern even though you don't see nitit in the broa market today. >> the fed has to step in and reverse course or policy listen to mike santoli

it struck me that the sense out there in the market is that there's been a lot of adjustment that's taken place and the question is, is there more adjustment to take place are all of the uninsured depositors out of places where they feel they can lose their money and is the fallout from that decline in liabilities on the books of banks already been -- what's the right word -- incorporated into the outlook for the individual bank and by the market for all of the banks that have to suffer this decline in liabilities. >> mike santoli, react >> yeah, i think that the market is at least gravitating toward the idea that there will be continued pressure on deposit flows simply because other short-term cash-like instruments are that much more attractive. the banks are going to have to pay up to keep the deposits, or the deposits will leak out over time one to have reasons that the equity market has seemed more steady in the face of all this

is, one, as you mentioned, the very largest stocks are supporting the indexes, a lot of other stocks are registering some macro concerns. and we're moving at the most quarter point increments every six or seven weeks that's not a game changer on a short-term basis whether for deposit flows or the cost of capital or anything else the s&p is exactly where it was a year ago when the fed funds was at 50 basis points it's not about is the fed with us or against us. >> we've spent 11 minutes now talking about a variety of interesting topic and is the one topic, the current banking crisis may be over, but i'll tell you one potential crisis that is in no way over and that is the debt ceiling debate that is going to come up and heat up over the next six to eight weeks. how might a default play out in the markets for stocks and bonds and anywhere else? >> yeah, i think a lot of investors i've been speaking

with are more focused ton fed righon the fed right now than the debt ceiling. looking at the remarkable calm in the s&p 500, the nasdaq, the nasdaq is on the verge of entering a new bull market, we're seeing people grow a lot more cautious. for example, one measure of leverage has been hovering near its lowest levels since 2018 we've seen people pull back on that really aggressive options trading. they've ramped up bets on a bond rally. i think you are seeing people growing more risk-averse and kind of afraid of placing big bets in either direction ahead of the fed, ahead of the debt ceiling and ahead of all these earnings that we have coming out. >> there's a lot to look at. thank you very much. steve liesman, mike santoli and welcome. nice to have you in the house.

despite being closely tied to the regional bank space, the mortgage market has held strong against all this ongoing volatility the new mortgage fees go into effect today from fannie and freddie and they are creating waves. further ahead, this week is giving us key insights on the economy. we've got the fed wednesday. we've got jobs friday. but first today we'll get a gauge of the consumer with the ceo of mattel. "power lunch" is back in a moment the people who live and work there. because you call these communities home, and we do too. pnc bank. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. meet stephanie... goodnight! and bethany... [guhhnnaaaghh] identical twins. both struggle with cpap for their sleep apnea.

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welcome back, everybody. a new change in fees coming from fannie and freddy. diana olick is here to explain what's happening. >> these are upfront fees that can be folded into your interest rate based ton borrower's risk they were designed to protect fannie and freddie's finances as well as the taxpayers that back them after the great recession, these fees increased after a recent review, they're changing again to bolster the finances as well as help lower income minority borrowers get into homeownership starting today, the fees will increase cost to borrowers overall. that's in general by four basis. if you were at 6.5, that becomes 6.54%. but the fees are different depending on the down payment and credit score and some borrowers with lower incomes will see the fee reduced while others will see it increase recent reports made this highly

political. so much so that the director sandra thompson who oversees fannie and freddie issued a statement saying higher credit score borrowers are not being charged more so that lower credit score borrowers can pay less the updated fees generally increase as credit scores decrease for any given level of down payment what is happening is more of a leveling of the playing field, but high credit score borrowers are still paying less than low credit borrowers kelly? >> how much less overall >> it depends on the borrower. there are literally 80 different slots in the grid depending on what your down payment is, what your credit score is, where you are on the whole thing it's impossible to say exactly. >> stay with us. there's been some outrage over these fees that the government is playing robinhood here we bring in the executive chair of inside mortgage finance it's good to have you. a lot of people trying to figure

out what's going on here what do you say? >> yeah, it is hard to figure out. it's a little bit in the weeds it's the kind of thing that mortgage lenders normally track but not anybody else but, you know, the bottom line is some borrowers who have high credit scores are going to be paying slightly more and some borrowers with low credit scores are going to be paying slightly less. >> so let me ask you this, i get the idea to make the housing market more equitable, more accessible, more available to people but to the extent that you make loans more available to individuals who are shakier credits, are you inviting a possible sort of replay of the subprime crisis of 15 years ago? >> i don't think i would go that far. we're increasing the risk. two of the biggest factors over

the years that have determined credit risk are the likelihood of a mortgage default are no equity or high loan value ratios and low credit scores. to the extent you mix those two, you certainly are encouraging more risk. all these loans that we're talking about also carry private mortgage insurance so to some extent, that is meant to offset the risk to fannie mae and freddie mac. >> is it true that higher income borrowers pay more than lower income ones? >> higher income borrowers are going to pay a slightly higher fee than they were in the past but the difference is, if you've got a low credit score, let's say 660, compared to someone with 760 and the comparable loan to value ratios, you're going to pay three times as much with that lower credit score. >> so the lower credit score individual still pays more than

the -- apples to apples on a similar size loan than a high credit score individual, but the high credit score individual is going to be paying higher fees and the low credit score individuals is going to be paying lower fees, right >> exactly marginally, it's different it's not a huge increase but that's basically it. and it's -- a goal is to make fannie mae and freddie mac's loans more accessible to minority borrowers and this is one way to do that. >> you said this was in the weeds, and i've got poison ivy now. >> we've seen innovations like this discussed would something like that be more straightforward why do people think that this one in particular is useful when it's hard to understand, sort of small potatoes around the cost of owning a home why this fix when are there other fixes out there?

>> it is unusual to see something like this. we've seen fannie and freddie have special programs targeted at lower income borrowers or people with lower credit scores and there's an education function and there's a specific application. but it's outside the mainstream. this is one of the first attempts we've seen that's really mainstreaming the underwriting to bring in lower income and minority borrowers. >> do you think it's going to make a big impact? one of the changes on a $350,000 loan would be, you know, in the range of $1,300. >> yes i think people are going to know it normally people don't focus on fannie and freddie's pricing they see what the lender is quoting them and they don't really understand how much of it is government implemented and how much is just going into the lender's pockets i don't think the averag consumer is going to figure this all out. but it's certainly going to have an impact.

and i think in a higher interest rate environment like we're in now, when you're talking about mortgages at 6.5% or more, it's going to be more noticeable because all fees are more noticeable. >> we got to go. but the spread between the ten year and the mortgage rate is still quite high ironically, because of some of the banking problems and the fed tightening and everything else you wonder if you got that spread down if it would go a long way >> it would. if we had what we considered more normal spread, we would have much lower interest rates than we're seeing now. >> we appreciate it very much today. thanks for joining us. >> great to see you. >> interesting conversation. still to come, looking for a spark between electric cars, smart home devices it's hard to deny that the future of your home is anything but electric and yet all those advanced devices are being connected by the same electric panel we've been using for decades we'll take a look at one company trying to fix that in today's

eastt. more power lunch right around the bend

your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire welcome back to "power lunch. we've seen the gains diminish somewhat the dow hanging on to a 31-point

increase here. the s&p up six and the nasdaq positive by four we saw markets react to that this morning. >> swiftly, that's how they reacted. 53.2 is our april read on prices paid and this morning, that turned out to be a nine-month high. highest level since july of '22 and the markets, pretty much immediate. look at the intraday, you can see at 10:00 eastern, the way rates pop. many were asking me prior to that, can you see the effects of the banking issues and the takeover and jp morgan, all of that in the morgan yields were higher taking some of the flight to safety out but the move on the 10:00 eastern number was the event of the day. ten-year note yields, same effect and they've kept on moving higher as a matter of fact right now, twos, threes, fives, sevens, tens are all on pace for one-week high yield close.

the only thing that isn't, 30-year and 20-year, they're a little bit longer term if we look at january fed fund futures, and i think this is important, at 10:00 eastern, look at the way the price went down bringing more fed in it quickly came back out because most likely this is going to be the last rate increase on this cycle. remember, it's the slow effects of a fast fed tightening cycle in my opinion that's forced another banking issue. and most likely the slow effects will keep bubbling up in the weeks and quarters ahead look at that march 1st of 30-year bonds on the precipice of a two-week high close treasuries seem to be moving up a little bit more aggressive potentially giving us clues about a steeper yield curve down the road back to you. >> thank you. let's get to courtney reagan for the cnbc news update. >> thanks, kelly here's your update at this hour. three crew members are missing after a tanker fire off the

southern coast of malaysia there were 28 crew members on board and 23 were saved. the cause of the incident is under investigation. five environmental and cultural heritage groups are suing the faa over spacex. the groups allege that the agency violated the national environment policy act when it allowed spacex to launch its starship rocket. the launch hurling debris thousands of feet away into a sensitive habitat and sparked a fire on state park lands near the launch site. democratic senator ben cardin of maryland is expected to announce his retirement after serving three terms. it's likely to create a democratic primary to replace him as the party faces a tough electorate map to maintain its slim majority next year. tyler, back over to you. >> thank you very much. still to come, mattel and

hasbro taking off the kid gloves the company is delivering mixed results but announcing some key licensing agreements we'll speak to mattel's ceo when "power lunch" returns. >> announcer: the bond report is brought to you by pimco, a global leader in active fixed income (dr. aaron king) if you have diabetes, getting on dexcom is the single most important thing you can do. it eliminates painful finger sticks, helps lower a1c, and it's covered by medicare. before using the dexcom g7, i was really frustrated.

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welcome back to "power lunch," everybody. global conference kicking off today in beverly hills they have a host of ceos and industry experts gathering together, including our next guest who has a great view of the toy industry ynon kriez is the ceo of mattel. it's great to have you on the program. welcome. >> thank you for having me. >> toys were a hot topic last week, especially after what happened with your rival hasbro there, peppa pig and play dough and all the rest of it tell us what you think is going on in the toy industry is it about hot products is it about strong -- is it about all the millennials in household formation? what's happening here? >> well, what we're seeing is strong demand for quality product and trusted brands we've always said, this is what's really driving the

industry we saw growth in consumer demand for our products in the first quarter and we expect to see that through the rest of the year and it's all driven by quality product, trusted brands, and this is where -- the fact that we own one of the strongest portfolios in the world is playing to our advantage. >> year over year, your sales were down, if i'm reading correctly, and barbie had a tough quarter, down 40% in sales. i know you're looking forward to the barbie movie to give that a little juice tell me why sales were down as much as they were. >> we were impacted by elevated inventory entering the year. but the underlying consumer demand was positive. in fact, consumer demand was double digit ahead of gross billings so you have to really look at the discrepancy between elevated inventory and the underlying performance. we expect that to be corrected by the end of the second quarter

and to see growth for the full year in consumer demand for our product. barbie was the number one doll property globally and number one doll property every single week in the u.s and, of course, the barbie movie will be an event it will be abimpn important eve. not just for barbie, but we believe for the film industry. and we expect that to be an exciting movie and an expression of barbie on the big screen and we could not be more excited about how this film will be unfolding and what it means for barbie not just for this quarter or this year, but in terms of how we manage the franchise going f fw fwoerd. >> i joked about your competitor a moment ago speaking of the barbie movie, you're going to help them with monopoly games you'll be working together on hot wheels and uno is consolidation at hand here?

>> this is cross-licensing agreement between our companies. it is the first one that we've done but we started it around barbie with monopoly and transformers around hot wheels and uno. it's a win-win for the companies, but the real winners is the consumer that will enjoy and have more ways to engage with the their favorite brands, especially around a busy summer period with both barbie and transformers having big theatrical releases. >> i think it's wonderful that two rivals and competitors such as yourselves and hasbro, somebody said play nice and you did. i think that's very good tell me about inflation and i'm thinking here about materials inflation or supply chain inflation, how has that impacted your business and have you been able, if there are cost increases, to pass on those cost

increases to consumers in the form of price increases. >> we saw significant inflation over the last few years. in 2023, we expect inflation to moderate we already implemented price increases last year. we haven't announced any price increases this year and we don't expect to increase prices at this point inflation is moderating, especially in input costs and shipping wage is still an inflationary factor but all in all, we expect inflation to moderate in 2023. >> thank you for being with us today. we really appreciate your fighting through the noise there in the background. it's not easy to do what you just did and stay focused. we appreciate it ynon kriez of mattel. >> thank you so much. our homes are chock-full of the latest smart devices why haven't we changed the way we power them? we'll look at a start-up that is trying to change that.

and cnbc celebrates asian american and pacific islander heritage month here's albert chang. >> i'm proud of my chinese culture. i am proud of the principals in which i was raised, but i'm proud as being born as an american where i can embrace all the positive qualities that makes this country so unique, and, you know, as a community, the asian culture or community never really had a voice and what i'm happy to see is that voice has grown louder and prouder because a lot of the attention has been placed on certain individuals and the community that's been given a profile on the world stage

>> announcer: sponsored by pgim. see how our investments shape tomorrow today 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... pgim. our investments shape tomorrow today.

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news out of the fdic leslie picker has those details. >> the fdic outlining three things, among the options disclosed in a report earlier this hour, their preferred choice is altering the system to provide targeted coverage with different limits across account types where businesses payments are granted higher coverage than other accounts the rational in making this the favored option for reform is that business accounts pose a greater financial stability concern to the system. the other two options that they laid out include limited coverage which provides insurance to depositors up to a specific limit it's currently $250,000. but potentially they would increase that limit or unlimited coverage which would extend insurance to all depositors regardless of size

congress has to set the limit -- or has set the limit at 250,000. it would be up to congress to effectuate some changes or something else as for the overall impact on the banking system, any increase in coverage that would result in more insured deposits would result in a higher deposit insurance fund so this plan would require a larger amount from the fdic-insured institutions to cover more deposits in that fund >> thank you very much we talk a lot about electric vehicles as the future of sustainable car travel, but planes are big polluters too now thanks to the inflation reduction act, a greener jet fuel could soon take off pippa stevens is here with key details. >> we're talking about the sustainable aviation fuel and that's important because right now it's really the only viable way to cut emissions from planes which is one of the most challenging industries to

decarbonize. hydrogen is not ready for planes and batteries are too heavy. so this is the only option it's used from used cooking oil and animal by-products and it's blended with traditional jet fuel all told, it can cut emissions by 80% but so far, the industry has failed to take off because it's simply too expensive costing between three and five times more than jet fuel the inflation reduction acts will be offering tax credits when combined, credit suisse estimates it could become cheaper than jet fuel. airlines like united, delta and american are buyers on the other side still, a very nascent industry >> saf >> and the fuel works as good as

regular jet fuel. >> up to a certain percentage. it's blended with jet fuel, but it's a drop-in product >> same engine works the same way. >> same engine. >> tyler is like, is my plane safe >> safe. >> thank you >> pippa, thank you. our homes are increasingly becoming a command hub for all kinds of smart power one major component hasn't been smart at all until now diana olick with the details on her continuing series on climate start-ups. >> most of you probably have some kind of smartphone device, a smart thermostat, battery backup, but the panel that connects it all, hasn't changed much in decades and the more we electrify our homes, the more we need something better. >> with electrical power for home, vehicle and battery backup increasingly running off the same system, the race is onto

reinvent the 75-year-old electrical panel lumen, schneider and span are making the systems smarter. >> they're cable of measuring every circuit in your home the panel connects to an app that shows the consumer where all of the home's power is coming from. the grid, solar, battery, so they can see exactly how and how much they're consuming >> the span homeowner app gives you visibility and control over what's happening in your home in realtime. >> reporter: and that is increasingly critical for climate resiliency. >> i think more and more homeowners are starting to understand that having a home battery or an electric vehicle is critical. >> reporter: raul says he hopes span will be in 10 million homes by the end of the decade and so do his investors who don't seem concerned about the $7,000 price tag. >> it's not a cheap product.

but when you look at the alternative solution of if you have to upgrade your circuit breaker and upgrade your supply from a utility, that gets very expensive. >> reporter: span is backed by wire frame ventures, munich re, fifth wall and amazon's alexa fund total funding so far, $231 million. >> some homebuilders are adopting the panel because it reduces the cost of the home but the vast majority of the business is still retrofits. many of the new electrical options for the home, especially evs, require you to upgrade your system anyway, including replacing that panel guys >> give us an idea of how this panel can help the consumer not only save energy, but money. >> well, because knowledge is power, right if you know exactly what you're using and when, you can sort of scheme that when it comes to perhaps selling back some of your solar power back to the

grid or using it at different times of the evening when rates might be lower you begin to understand when and where your costs are coming from if you dig into it, you can save money. >> thank you very much coming up, cars, cruises and ships, we'll get the trade in gm, norwegian in three-stock lunch. "power lunch" is back in two . (cecily) so you got an awesome network... (seth) and when i switched, i got to choose the phone i wanted. for free. not bragging. (cecily) you're bragging. (neighbor) oh, he's bragging. (seth) who, me? never. oh, excuse me. hello, your royal highness, sir... (cecily) okay, that's a brag. (seth) hey, mom. i gotta call you back. (vo) switch and choose the phone you want, like the incredible iphone 14, on us. (cecily) on the network worth bragging about. verizon you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me.

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names seeing a nice boost. morgan stanley upgraded gm norwegian cruise lines shares up almost 10% let's trade the names with harry wall, managing director at op p oppenheimer. harry, let's start with gm. >> this stock is trendless, for

that reason we're on the sidelines. if you're bullish on the fundamentals, we recommend placing a stop on a closing basis at $31 that being the stock's low if you fall below there, that's a breakdown and we suggest that the range is turning into a downtrend. we don't buy stocks below the 200-day average, which gm is so we say be cautious on that. we would be looking to buy auto components and looking at a name like active. >> semi having a nice day. a lot of questions and focus on the auto sector. what about norwegian, the cruise line >> yes, consume services

we like the group. however, we like more of the restaurant space for us cruise lines are a beta trade. they can move a lot in their short amount of time if we're right that there's more to this market recovery, that the s&p 500 is going to move higher, cruise lines can move with it. here are the levels i'm watching $14.50, that's the 200-day average. it's pushing right into it if you get above there, that would be an incremental positive >> last on our list is on semiconductor, on or off >> we're on. now we have one i'm more excited to talk about. as we think about the technology se sector, it's reclaiming its leadership role. the drivers of that leadership

are different than the drivers that we saw last cycle it's been about this reversal into the semiconductor industry. it's not the same software leadership like we saw last cycle. for a name like on semiconductor, this is strength to stick with. this was after the stock reset to its 200-day average with this inflection we see this as a sign that the stock's uptrend is restarting and next up we'll watch the report this week generally speaking, it's the broadness of the strength in this industry group that makes it so compelling. >> harry, thank you very much. appreciate your time today >> thank you. still to come, jack dorsey's mea culpa and the latest office trend. don't miss our special, "the fed decision." tyler and i will be live in

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you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire twitter's former ceo, jack dorsey -- that is not dorsey that is. openly criticizing elon musk's operation of the company

using his new social media venture called blue sky dorsey saying, it all went south and musk should have walked away from the acquisition it was a 180 from dorsey claiming musk was the singular solution to twitter's problems the founder giving shade to mr. musk. >> i looked at blue sky. it started as a project within twitter by dorsey. he's on the board of it. i don't know if i have the mental capacity to figure out another social media site. by the way, if you're on twitter and used to be a blue check, if you edit the bio and write blue check, the blue check reappears. >> is that right >> i tried it out. >> what does that blue check mean >> that we were -- okay, this is really cnbc versus the imposter. now you only get the blue check

if you pay for it. the bugginess of twitter's attempt trying to turn itself around has been a comedic feature. musk's announcement over the weekend, the idea of you want to read "washington post," "new york times," i'll let you pay piecemeal for that as a user i would love that. do i trust he can roll this out succes successfully, not so much. >> when someone forwards me something on twitter and i'm not a twitter subscriber, it frustrates me. >> maybe it's "washington post." can we show the tiktok video quiet quitting check out what's happening on tiktok people quitting live on tiktok they don't have it. >> people quitting live on tiktok >> why is this still going on? is the labor market still that strong >> people can do that and throw

up a tiktok video saying i'm out of here. >> if that's the case the fed will have to hike by 50 wednesday. >> busy week ahead starting busy with the news on first republic that's for watching "power lunch," everybody. "closing bell" starts now. welcome. i'm scott wapner we begin with stocks trying to rally to kick off the big week we'll see if they can keep that up the fed decision 48 hours away more earnings too, including the biggest stock in the market, apple. here is your score card with 60 minutes to go. the dow is beginning may with a late-day turn around up triple digits earlier gave it all back now it's flat. similar story today for the s&p 500 and the nasdaq the s&p 500 got closer to 4,200. gave it back