get up to 4.20% apy, pay no account fees, and up to $2m in fdic insurance. download the sofi app and earn up to $250 when you set up direct deposit. sofi get your money right. good afternoon and welcome to "power lunch. alongside kelly evans, i'm tyler mathisen here's what's new at 2:00. the federal focus, whether it is the federal reserve's mission to hike rates until inflation is curbed or the growing likelihood of a total federal government shutdown, it might be time to accept the reality that washington's shadow is cast over wall street and it is there to stay we have former new orleans mayor marc morial, to weigh in today as rates continue to climb, are some millennials losing hope in the housing market

a new report from b of a shows they expect to pay even more for homes down the line. and the market could have far reaching consequences, we'll speak to the analyst behind that report >> looking forward to that, tyler, thank you hi, everybody. on the market front, look at the dow up 460 points, that's close to session highs, driven by the previously mentioned jobs report s&p up to 41.29. nasdaq up more than 2% now the banks rebounding today check out some of the regional names led higher by pacwest surging 85%. that puts it at almost $6 a share now. western alliance up 50%, zion up 18%. making hay out of any signs that could mean a fed pause apple up almost 5% after its earnings beat showing that hardware and hard numbers are more important than big promises cigna up 7% on beat on results

thanks to lower costs and higher growth in health insurance speaking of which, it is official, the world's health organization declaring an end to the covid-19 public emergency globally and by the way, on that note, pfizer turning red today. >> thanks, kelly besides today's jobs report, investors have a lot to digest on the federal level from the interest rate decisions to bank turmoil and the debt ceiling risks, president biden speaking just over the last hour or so, applauding the job market, saying there is still work to do and taking a shot at republicans over the debt ceiling struggle so let's bring in marc morial, former new orleans mayor, president and ceo of the national urban league. let's talk jobs first. you have the unemployment rate at 3.4%. that's 54-year low job growth remains strong. these are good signs of an economy. maybe we get away with a soft

landing here >> i think the promoters of doom and gloom, promoters of a recession, appear to be wrong. we can't look into our crystal ball and know what three, six, nine months will hold, but the american consumer, the jobs market, on an overall basis, as well as the jobs market for african americans and latinos remains at historic lows and the good part of this is the consistency in job creation time i like to look at these things over a period of months to see if the growth is consistent or if we have this up and down phenomenon so that is positive and it demonstrates that notwithstanding, the rises in interest rates, at least the job market remains strong and robust and growing. >> do you think that the -- the fed has this dual mandate, the highest level of employment that is commensurate with price

stability. do you think the fed will look at these job numbers as it begins to think about the june meeting and say, the job market is still a little too hot, we need to raise rates even more to get the kind of restraint in employment costs down? >> i think that it's time for the fed to pause its interest rate hikes, to create some stability and foreseeability in what interest rates are going to be like for home buyers, for business loans, foreseeability and expectations are important if someone is going to buy a home or thinking two, three, four months down the line, it is better for them to know, have some sense of what the rates are going to be. i think we need some stabilization. if the fed needs to return to interest rate hikes, hikes they can do that, but at this point, i do believe that it is important not to see unemployment as the weapon to

inflation. and the calibration and the orchestration of interest rates and jobs market seems to be going just about at the best you can expect in a difficult environment. so, that is what i would hope. >> are you worried about the health of the banks? >> i am worried about the idea that the rhetoric and the consistent talk about the need for the ease of regulation, i think is now discredited by what we have seen i think we need stronger supervision. i think congress should go back and place the regional banks under a stress test regime, if you will and this is why we need adequate and effective bank supervision and bank regulation in this nation so we don't face what we have seen over the last few months, but, look, give the fed some credit for responding quickly and finding a new home for these

troubled regional banks. but the important thing is the need for supervision and regulation, that is right, that prevents this and creates confidence in both the depositors, investors and borrowers, it is so crucial. >> let's pivot now to the debt ceiling, and your perception of the impact that -- of -- what would happen if we breakthrough that debt ceiling and fail to pay our obligations, lots of people say it will be a complete disaster we don't really know that because we have never really done that. >> i believe that, yeah, a default would be devastating, but we need to find a way out of this periodic drama of congress having to vote, if you will, to increase the debt ceiling. i think the debt ceiling increase ought to be baked in to the budget resolution, meaning

when congress agrees to spend, when congress agrees on a fiscal plan for the year, that the commensurate increase in the debt ceiling ought to go along with that. and i also think that a clean vote on a debt ceiling is essential to maintaining the confidence of the markets, the confidence of consumers, and the confidence in the american people we can have a separate debate and discussion about how to alter, how to change, if you will, the budget plan or the appropriations plan. i do not believe it is good fiscal policy to tie the two together because what we're talking about is raising the debt ceiling for expenses that have already been committed to and incurred it is politics to tie them together it is good fiscal policy to separate them. >> yeah, that's a very interesting point in your answer there. the idea that if you're going to

appropriate at the level congress appropriates, you ought to as a part of that appropriation make sure your ability to borrow, to fund those appropriations is there. >> it is like buying a house today and saying, i'll sign the promissory note and the mortgage later on let me just make the payments with my down payment and at the end then i'll agree to the -- >> and both parties as you well know, mayor, both parties are guilty of making these appropriations and spending a lot of money and that requires borrowing, requires a lot of borrowing. we have to leave it there. >> i think we need some reform on how we do this. i think that's really -- maybe at this moment that's the lesson that will be learned >> mayor morial, thank you very much great to see you. >> thank you always >> you bet. let's switch to the bond market now rick santelli breaking down that jobs report.

how is it going, rick? >> hi, kelly indeed maybe the most important issue today in my opinion is you look at the ten-year note yields, the fact that we're on the week. we're significantly higher on the session. the reason this is important is because last week on the weekend we saw first republic get purchased. on monday, we shot up over 360 so if one of the reasons stocks are up today is because banks are doing better, pacwest, kbw index, what is going on with the yields if you look at week to date of bunds, they closed down ten-year, even though the ecb is hawkish and raised rates the dollar index, it isn't quite there, but very near one-year lows but to be fair, it is still above 100, which is considered pretty rich. speaking of that, let's find paul. >> hey, rick. >> one question i want to ask you. and that is what is most important thing investors that are watching right now that have

positions in equities, what should they be most concerned with or paying the most attention to should it be inflation, should it be the fed? should it be debt cerealing? or should it be the slowing economy? >> i think right now we moved past the inflation unless something crazy happens next week, really forces the fed's hand, i think now we're moving to the broader economic indicators you were talking about. >> is that one of the reasons you think stocks are doing so well on the vix and it is so far down today in. >> they love the number today. it is quiet in here. vix smashed, like you said might be good news again we're watching the economy. >> how do we play into the banks? sheila barrett was on cnbc today and said it is not that big of a deal we need to pay attention, but nothing like '08 i don't know i have confidence that we have seen all of the things that are scurrying around when the bank lights go on >> well, i don't think anyone should have that confidence. today, though, that seems to be on the back burner

and the uncertainty with the banks kind of gives everyone a little more confidence that this hiking cycle might be over. >> that's a good point the fed is done, maybe less pressure on banks. monday is going to be interesting to see how these rates fare back to you. have a good weekend. >> thank you, both really appreciate it. big movers across the market following today's jobs report. before we get to break, let' get you some key trades for the day. we'll do that with david spiga going to run through a couple of big areas here we talked about the banks, regionals having a big turn around should people be chasing the group, go with the big players, what would you do here >> i would go with the money center banks we like jpmorgan here. they're one of the leaders if not the leader in the space. largest deposit base in the country, just got bigger with the acquisition of first republic bank. great wolf management business got better from the acquisition of first republic. great diverse revenue sources

and very solid leadership team led by jamie dimon who has been through financial crises before. and knows how to weather them. >> let's move on, david, here to apple, up more than 4% in today's trade. overall sales falling for the second quarter in a row. but those stronger than anticipated iphone sales seem to be exciting wall street. what do you think of apple >> i think you got to own apple. the run it has this is ridiculous they have become consumer staples. i think people would rather give up their left arm than give up their iphone if we go into an economic downturn, they'll continue to pay the bills and buy new iphones. you want to own high quality visible earnings growth in an economic slowdown and that's one of the reasons apple should be in your portfolio. >> warren buffett said much of the same we'll hear him echo that tomorrow as well let's turn to tesla. shares up more than 4% today because they raised the prices

of premium models. they said to face maybe more competition than any other market, byd and others, does this tell you that they have more pricing power in market strength than we previously thought? would you be a buyer here? >> we're not a buyer of tesla. their pricing strategy is one of the reasons we don't like it they're sacrificing margins and profit for volume, which is a strategy we are not a fan of and we're also concerned if elon musk has his eye on the ball with what is going on at twitter. he's distracted and as you said, there is a lot of competition in the ev space that's not a name we want to own today. >> no tesla for you then david, thanks so much for joining us and running through all the names. good to see you. coming up, young home buyers can't catch a break. prices are not really moving but many are still motivated to buy and the ones that do are spending money on renovations. we'll speak to b of a's liz

suzuki about the firm's new survey and get insight into how some real estate names are being impacted by -- retail names are being impacted by real estate. look at shares of lyft, plunging more than 20% today in a strong market like this, down 22% after last night's slightly larger than expected loss and disappointing guidance first report since david rischer was named ceo. the stock lost half its value in the past year and uber has had some earnings strength a ballet studio, an architecture firm... and homemade barbeque sauce. they're called 'small businesses.' but to the people who build them there's nothing 'small' about them. that's why at t-mobile for business... you'll save more than $1,000 versus verizon. and with price lock guarantee, we'll never raise your rate plan. so you can keep your focus on toe-turns and making sure the sauce is extra spicy.

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welcome back, everybody. despite a historically tough housing market, millennials are fighting to find a home. that's not an easy fight either according to a new survey from b of a 58% think mortgage rates are headed higher. some are powering through. 48% of millennials are now homeowners as of this year and the ones that managed to find a dream house or any house are now helping fuel the renovation market joining us now with more is liz suzuki, senior hard-lines retail analyst. this makes total sense to me but it sounds like it is still not enough demand to get us back to where we were in the middle of the pandemic when everyone was apparently buying appliances at the same time. >> sure. and thanks so much for having me

on this is such a fun report to come on and talk about every year we have been tracking this millennial generation since 2016 and have seen such a big stepup in how this generation has matured and entered peak home buying and earnings years. it is important for retailers and home builders and entire housing value chain to be thinking about what is happening with this generation and so as you mentioned, it is a really tough time for affordability, but the demand is still outstripping supply, which is why you see home prices elevated, you see mortgage rates that are high, and as those mortgage rates start to come down, we expect to see a bit of increase in housing turnover in the second half of the year. so some of these millennials on the sidelines or have just been anxious to get into the housing market will have that opportunity as we get into the later half of this year. >> it feels like there is a bit of a lockup in the housing market now interest rates are high, which means that there is a powerful disincentive for a homeowner to sell and trade their 3% mortgage

for a 7% mortgage. so, i think a lot of people are staying put, that's why there is so little supply on the market in many places they're staying put and maybe spending on renovations. are you seeing that in the results of the lowe's, home depot, for example. >> that effect is powerful especially when you think about the amount of home equity built up over the last few years so the 95% of homeowners who aren't going to move in any given year have a lot of equity to tap into in order to make their home meet their needs if they can't move into a new home. so we have seen a lot of big renovation projects that are continuing to happen the backlog of professional repairs that have yet to be released is very much still a tailwind and we heard from yesterday from floor and decor, they talked about how some homeowners are sort of downshifting into smaller projects and they may be doing a powder room, flooring

project instead of master bathroom and some of those renovations that would normally come with housing turnover is in preparing your home for sale or doing renovations after you purchased. those are going to be on the sidelines for a while until we get that pickup in turnover. in the meantime, homeowners are still doing projects, but descaling or doing some of the smaller ones >> home depot down 8% year to date floor and decor is up 33%. would you be -- not to put it the way a trader would, would you be a buyer of home depot here can they overcome this post pandemic slump >> home depot and lowe's look very inexpensive now they're trading well below their pre-covid long-term averages in terms of valuation and the outlook really is not so dire when you think about all of these homeowners that still have this home equity i talked about, that are tapping into it and making home renovations. the home improvement cycle is less volatile than that of home

building and other elements of housing. in terms of the housing value chain, we think that home improvement is generally fairly stable and that this year is going to be flattish in terms of demand, which is coming off a very high level. so, for a retailer like home depot or lowe's, which has a very strong long-term outlook and we still have this favorable supply and demand dynamic for housing, we think those are great stocks to own right now. >> liz, thank you very much. liz suzuki, we appreciate your time today >> thank you still to come, the ai wheel keeps on turning proud mary keeps on burning. sam altman telling "squawk box" earlier today that open ai welcomes regulation, saying their mission is to build these advance systems and deploy them into society with maximum benefit. apple telling cnbc that ai is huge, but it is important to monitor. we'll discuss more about that growing area in today's working lunch.

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artificial intelligence is reshaping the software landscape

as chegg stock got slammed after earnings slowdown and microsoft got a boost on ai hopes. jon fortt brings us up close with the ceo whose legacy might get cemented in the way this ai era turns out. >> tyler, that's right our viewers are familiar with satya nadella. he's been microsoft's ceo for nine years, gets credit for two broad feats on the product side, remaking microsoft as a diversified cloud leader on the culture side, rebuilding a leadership team with a balance of aggression and empathy. nadella got a lesson on that balance early as a high school cricket player he was a bowler, like a pitcher in baseball. in one game he was floundering the opposing veteran seemed to have him figured out what he did next, pulled from the game, he said delivered a big lesson. >> it is an amazing thing. i think about -- i talked to that gentleman subsequently, but

it is fascinating that he did that and the fact that i was putting up ordinary trash, he replaced me, brought himself on, pretty good bowler, got the breakthrough, but then gave the ball back to me and i went on to do well in that particular game and i had a pretty decent season but the reason why he did it is because he didn't want to break my confidence. this is a high school captain who is thinking about his team and the composition of the team, the confidence of his players, how they can last the whole season i said that's something one can learn from as a leader. >> microsoft is like that with ai nadella's senior leadership team is made up of veterans of the emerging cloud era even though microsoft missed the mobile wave, losing out to apple's ios and google's android, got back into the game with cloud, now they want to build on the cloud success and open up an early lead in artificial intelligence. >> so i feel it is kind of like

that it is 2007, 2008 dlcloud. the business model side of this, because it builds on the cloud, so one of the foundational things about ai, who knows how it will reshape all categories this is one of those things time will tell. but i'm much more optimistic in terms of our capability to lead from day one, versus having to do that catch up which we have done too in some cases >> in that conversation, nadella was mapping out multiple lines of attack in microsoft's ai strategy, including the infrastructure play with azure, the search share play with bing, now we see the knowledge worker and developer profit margin and revenue growth plays with office 365 co-pilot and get hub co-pilot and we'll hear more from a big competitor at google's io developer. >> what do we know about his view of the dangers of ai? >> microsoft has a team working

on that. it was part of the presentation when they initially rolled out open ai, chatgpt, tools along with bing, all the ways they had sort of pressure tested trying to get open ai to deliver bad information to do dangerous things and sort of mitigating as part of the process. they are very aware. >> the pressures on google for that event next week, wouldn't you say? so many people said, they stumbled out of the gate, and they kind of need to come out and -- it is okay for them not to be the first mover, but they have to really come out in a big way. i don't know if you heard any scuttle but about whether we'll get anything that dazzling next week. >> we'll get a lot from google next week. the pressure is on them, but already the bar has been set kind of low by that initial screw up and, hey, microsoft bing is not perfect. but google just really didn't work through the kinks in that presentation ahead of time and probably wishes they did >> what is ironic, we were talking to deirdre last week and she was comparing google with

microsoft. or with open ai. and she asked it, had arm holdings every been public and open ai gave the raw result and google gave the right one. remember when they stumbled during that presentation, where their ai appeared not to give the right answer, but you wonder if they can show to the market, we -- now that everyone has the dazzle effect, if we are more reliable, i feel like that would go far. >> the reliability is a moving target part of what both google and microsoft and others are fighting for now is the attention of developers to build on top of their ai infrastructure and to then in the process be training their ai algorithms whoever is learning fastest and getting the most developer buy-in will get better faster. >> i know we have to go. that leaked google document, open source is the real winner, not microsoft or google, what would he say to that >> i think he would say he's making google dance. that's what he said couple of months -- a lot of people dancing now.

chegg is dancing microsoft is trying to run we'll see. the race is just getting started. >> absolutely. >> stay story about getting pulled as the cricket bowler, pretty good college essay. jon fortt, thanks. to seema mody for a cnbc news update. >> here is a news update at this hour we'll start in florida republicans have increased a budget for the office of election crimes and security the office championed by governor ron desantis was created as part of the state's ongoing election integrity efforts. democrats have criticized the office, most notably in august when it arrested 20 people on charges of being ineligible to vote after they cast ballots in the 2020 election. the food and drug administration will review the first ever request to make a birth control pill available without a prescription next week if the request is approved, the medication will become the first contraceptive pill to be moved on to store shelves. the fda raised several concerns

in an initial review to date. and king charles met with commonwealth leaders at the headquarters of the commonwealth secretary today, according to a statement, he also met with the leaders individually to discuss issues including the empowerment of young people. this comes ahead of the king's coronation tomorrow. kelly and tyler, will you be getting up early to watch it >> i'm totally getting up early. >> i'm not sure i'm getting up you give me the highlights. >> maybe i'll do 7:00. will it be over by 7:00? >> i think it is a full day, a lot of bopomp and -- >> i'm not getting up early. we have markets higher for the first time in five days. we'll talk about a new economic reality, a crisis of confidence in banks, fears of a looming recession, lack of public trust in policymakers and maybe companies to do what's right we'll talk about how to navite e turmoil and opportunities.

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financial crisis also mounting frustration with lawmakers' handling of the bank crisis, the prospect of big banks getting bigger and still high inflation, despite the fed continuing to tighten the screws some might call it a vicious cycle. is our system financially -- financial system currently broken let's ask robert kiosaki, author of "rich dad, poor dad." good to have you with us do you see the banking system as broken are you worried about the safety of your deposits >> i would be, yes this here is paper i don't trust it >> and so, but, not trusting the paper value of paper money is a separate matter from whether the banks are stable and solvent >> that's correct. the whole system is in trouble my biggest concern is that inflation is now systemic.

and when powell said it is transitory, that was a lie when biden took the keystone xl pipeline offline, oil went from $30 a barrel to $120 a barrel. that was inflation not the printing of money. and so this thing here became less valuable and that's my concern. >> so, you know, i think inflation is -- i waent last night and bought milk, $7.59 a gallon. >> did you go to kings again >> i went to stop & shop these are high prices and they are systemic i take your point there. is the fed doing what it can in your view or is there a different way to combat inflation? >> well, i would say it is not what the fed is going to do. what are you going to do i always talk about the four gs that i've been investing in for most of my life. the first g is gold.

this is gold and then this is silver here. and i stay away from the slbs or glds, i want no counterparty risk i want the real stuff. the other thing i'm investing is ground i own apartment houses and then gasoline. gasoline, the green is -- that's how we fly our planes. and then the last one is food. i invest in cattle, and food so i just stay in things that as inflation goes up, gold goes up, real estate goes up, gasoline goes up, and food goes up. so i invest with the inflation, not against it >> robert, let me ask you about something when you mentioned owning housing and this has come up with a lot of people as well. you have investors wanting to own housing for the appreciation value. you have others who say, i'm sick of the way this drives up

rents or reduces the supply of homes i could buy. we look at the trend where this past week it seems like the big banks get bigger despite everything the administration really hopes happens here. can you just talk about whether these trends, when you say it comes back to us and what we're doing, what are some of the things you or others are doing, making it worse for the guy who is trying to get ahead >> i'm a big advocate for financial education. so the 1970s, when i got out of the marine corps, my rich dad had me take two things i had to learn how to sell because sales equals income, and then i had to learn how to invest in real estate because real estate is debt. so most people say, you know, live debt free, i had to learn to use debt as money and as you know, a dollar off the gold standard and the u.s. dollar became debt. i do almost everything opposite of what the pundits say. i'm not that free.

i use debt as money to acquire real estate. and that minimizes my taxes. that's what i do >> do you own equities >> i own equities of companies i've taken public. i've taken two companies public. one off the vancouver stock exchange, we had an ipo, and the second on the new york stock exchange this summer, an ipo. >> but beyond that, no equity? beyond that you don't own equities or equity mutual funds or etf >> i don't trust anything that can be printed i like the hard stuff. >> things. >> i am a commodity guy. >> robert, what would your advice be to somebody who might be 30 years old now, just paid or trying to pay an eye watering sum to get into this house, and they just -- they feel the pinch now it looks like the labor market could be turning, what do you do >> real estate is dependent upon jobs as you know i'm a little bit concerned about the number of layoffs coming in the tech industry. i would be very careful about

jobs i live in phoenix, arizona, that's where taiwan semiconductor moved here the first thing i say to young people is i would take a real estate investment course they don't cost very much. >> even now with real estate prices where they are, you think that's the right thing to do >> i love prices when prices come in, prices are low. for 2008, i borrowed $300 million to buy some of the best real estate in the world >> in 2023, real estate prices have pretty much doubled from '08, don't you think >> i think they're coming down also i would take classes on real estate before you do it. the reason is real estate is not liquid stock is liquid. if i buy apple and don't like it, i can sell it that night if i buy house or something, i'm stuck with it for a while. i highly recommend more illiquid the investment, the more you have to be confident and study and have good -- >> how do you separate the good

real estate classes from the scams? there are a lot of them. >> that's a -- you can answer that question. i look for the -- i get into fights on youtube with some of these real estate guys who are promoting what i consider very risky investment strategies, especially in real estate. i'll say it again, real estate is illiquid. this is as liquid as it gets stocks are liquid. you can get in and out but the moment you go into real estate or start a business, you're illiquid. the assets you're investing in, the smarter you got to be. >> words to live by. robert, a pleasure today thank you for your time. >> thank you >> really appreciate it. still ahead, pretty tasty investment, dairy queen is one of warren buffett's most famous businesses we'll speak to the ceo live from omaha about consumer trends and more ahead of the shareholders meeting tomorrow and as we head to break, cnbc is celebrating asian american

pacific islander heritage throughout may sharing stories of business leaders in their community here's deborah lou >> i grew up in a small town in south carolina, one of the very few asians in the state and i grew up going to football games and eating hot dogs and going to state fairs. i loved that at home i learned a different language we ate different foods and marrying those things together, being able to share that with others that's an important part of what it means to be an asian american and i'm so proud of that but that's also why i'm part of ancestry and i joined this company to help people discover a craft and connect around their family history because we all bring the experiences that we have, our cultures, our history, and make this country as rich as it is because we can bring i all together starting a new chapter can be the most thrilling thing in the world. there's an abundance of reasons to get started.

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♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪ ♪a lovely day (lovely day)♪ ♪(lovely day) (lovely day)♪ ♪(lovely day)♪ a bank that knows your business grows your business. bmo. welcome back to "power lunch. less than 24 hours away from berkshire hathaway's annual shareholder meeting in omaha no secret warren takes meticulous care in choosing the names he invests in. one of his most famous

businesses is dairy queen, a great barometer for the consumer at a questionable time for the economy. becky quick is live in omaha for this weekend's berkshire meeting and she's joined by dairy queen's ceo. becky? >> kelly, good to see you. this is one of those great days where you get out and say, hey, i need something guess what i suckered out of them, a dairy bar, you know. troy, this is a day where you go, a lot of excitement, a lot of things happening. earlier today, warren buffett and charlie munger stopped by. what did they say to you when they came here >> they did. i wasn't here at the time. i was at a lunch with some of the other managers, i said -- they said he's here. he had an opportunity to talk to some of our executives here. they talked a lot about what the pandemic meant, what changed during the pandemic, how did technology change, how did the consumer change? really good conversations. and, again, it shows how connected warren is with even our business. >> i will tell you, charlie, i

saw charlie here, he was talking, i was talking to charlie, he said, wait a second, they're selling deli bars for a dollar how can they charge that month that's more than they charge at the store. i said, no, how much do deli bars go for? >> it is going to vary it is significantly more than a dollar usually north of $2. >> i told him $2, $2.50, something along those lines. that's speaking to inflation and the big issue a lot of people had to deal with, something we talked about last year too where do things stand from the inflation front? >> inflation has been a real challenge over the last couple of years, no surprise to anybody. we are seeing in our business, it is hitting us in a couple of different ways it is hitting us from the cost of goods for our franchisees, and how can they price accordingly to offset the inflation they're experiencing both in labor costs and also with the groceries and that has been a real challenge. and the margins are getting thinner because you can't increase prices at the same rate that we have experienced from an

inflation standpoint the other piece that is hitting us is on the new restaurant development costs. costs of equipment, costs of construction has significantly increased, and it is putting pressure on that end of the business as well. >> is it slowing your expansion plans or just coughing up and paying for the cash? >> people for the most part are taking a long-term view of development. we're continuing to move on. we opened about 300 new restaurants last year. we will be north of that number this year. the bulk of our growth is still in our international markets, which isn't new, but it -- the franchisees are pausing but being very strategic and taking a long-term view. >> tyler mathisen has a question for you too. >> thank you very much i wonder who controls or who sets the prices in your stores is it you, corporate, or the individual franchisee who takes into account local differences in labor costs, et cetera, et cetera that's one and number two, compare the cost

of my favorite, a chocolate cone today with what it would have been three years ago, the price i would pay. >> wow great questions, i would say, first of all, on the first one about pricing, we provide pricing recommendations to our franchisees but they're independent business owners, so they ultimately decide what prices they will charge within their particular restaurants i can't give you the specific increase in terms of the dipped cone, but please keep going back to get it and we have a churro-dipped cone now that is awesome. when we look at pricing overall, over the past couple of years our pricing is up in the neighborhood of about 11% over the past two years so it is pretty significant increase it is stabilizing now. and hopefully as we get some relief now in terms of our commodity costs, in particular, that those prices hopefully will be able to become much more stable >> you did really well during the pandemic because even when stores were closed, a lot of viewers go up to the window or drive throughs and people were

just out what are you seeing from consumers? >> we did have the drive throughs and the walkup windows and drive throughs made a huge difference in the business three years of record sales and we are having a very strong first four months of 2023. what we're seeing is that drive throug the other thing though that we're seeing is this continuing affinity for digital and we had a promotion, protection, with our digital app. we had an 85% blizzard offer if you downloaded the app or had it and we had in a two-week period, more than 2 million additional downloads of our app digital will continue to play an important role. >> you have 215 stores in china. are you looking to expand anywhere else in asia? >> china will continue to be probably the strongest market. we had to pause in terms of our new market expansion during the

pandemic because we couldn't get into the markets and the consumer behavior wasn't necessarily going to be what it was long-term when you're watching how they behave during a pandemic we're reinvigorating our efforts to look back at these markets and start with markets that are adjacent to existing markets and a big reason for that is supply chain. we had significant supply chain challenges as a global society, and they still exist to some extent we want to leverage those supply chains where we can, and continue to expand hong kong would be a very good ex example. we're not in hong kong, and we want to expand into hong kong. we're also looking at, you know, the bigger regions if you will we're not in europe yet. we've talked about india in the past india is still on our radar screen as is australia we're really vetting them carefully right now because in those markets we will be obviously creating the brand awareness, but also setting up all of our infrastructure and supply chains so we want to make sure we're careful in our selection. >> troy, thank you very much

troy bader, thank you. >> great to see you. >> toss it back to you. >> thank you very much our thanks to you as well, mr. bader. tune in tomorrow where we'll have exclusive coverage of the shareholder meeting on cnbc, and cnbc.com becky and mike santoli will be live in omaha beginning at 10:00 wl rhtte te. weilbeig back. i was having relationship issues with my old bank. next to no interest, the fees... it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. get up to 4.20% apy, pay no account fees, and up to $2m in fdic insurance. download the sofi app and earn up to $250

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welcome back, everybody. energy was a big mover this week higher by 4% today, but down 7% for the week energy stocks down 5% this week. according to our partners at track insight energy etfs saw outflow of more than $436 million more information on the willshire etf hub. we will be right back. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities,

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i heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us. learn more at getrefunds.com. welcome back, everybody. with markets vaulting recession highs, the dow is up 600 points. we have had some commentary from the fed. let's bring in steve liesman with the details >> one of the members of the federal reserve says we're pow in the zone. the zfed is in the zone of bein restrictive. he said it would be 5.38 we're close tore where we need to be, and he said now he's ready to be data-dependent he said the fed is not behind the curve anymore, and it looks like we're coming to the end of the tightening process don't get too excited here because he also said it's not yet clear inflation is on a downward path. he said the decline is tenuous,

and the decline of interest rates we've seen -- there's lots of concern over the regional bank crisis is also an unwitting easing with the suggestion the fed may have to lean against that he said the tightening and the story on the economy is actually swamped by the decline of interest rates we have a strong labor market he said, in reaction to the job story this morning saying consumption will be strong, and so we have plenty of room to fight inflation now. i say he could be convinced but it sounds like he has a tightening bias to me. >> that doesn't explaining the market's reaction then maybe it's just the weekend, making it to the weekend. >> one of the hawks has staked out -- a still hawkish position, but it's definitely somewhat less hawkish than he was before. >> thank you steve, we appreciate it very much. let's check our stock drafts >> let's do that. >> to the wall, please one week out from the 2023 stock draft, our friend tom bergeron is in first place. helping him gain that discovery. >> he went out on a limb, and

it's supporting him. >> he also did third peloton ahead of that? warren buffett, this weekend >> thanks for watching "power lunch," everybody. you deserve a great weekend. >> go to dairy queen "closing bell" starts right now. thanks so much welcome to "closing bell." i'm scott wapner we have a very important interview coming up this hour. former fed vice chair, rich clarida will be with us in just a bit on whether the fed should have raised rates this week and even more importantly what it will do next in the meantime, this make or break hour begins with a big friday rally on wall street. there's your scorecard with 60 minutes to go in regulation. the dow was up 400-plus points throughout much of the day now it's 600 led by apple following its better than expected earnings report and another strong employment