good wednesday morning i'm carl quintanilla with sara eisen live on the floor of the new york stock exchange. setting the agenda for today, doubts on the debt ceiling no resolution as the president and the speaker remain pretty far apart on a deal. the nec deputy director will join us next on that and april's cpi. >> plus, airbnb ceo brian chesky with us here at the new york stock exchange the stock is getting hammered after earnings and a cautious outlook for the second quarter the chief catalyst there

>> later on, deirdre bosa is live at google io today. a big developer conference sand big test for sindar. and topping the tape, the market reaction to inflation stocks at this hour hanging on to gains, at least if you look at the s&p and nasdaq. although, we've come off the highs. the nasdaq was off the full percent about an hour ago. technology is still leading. the megacap tech is doing well today, but the dow has gone negative the cyclical groups are underperforming. s&p is unchanged as we dig under thesurface of the 4.9% april headline number on inflation, i want to highlight a few categories food, rising 7.7% from last year energy dropping 5.1. used cars and trucks, down 6.6 we're talking from last year while shelter costs are still rising 8.1%. on a monthly basis, we're seeing smaller gains, and that's a good sign for economists. let's bring in cnbc senior

markets commentator, mike santoli. is it not definitive enough of a report to get the market excited? >> that's fair to say. first of all, we get another cpi report another jobs report before the next fed meeting and it's consistent with, i think, the prevailing view that a pause is maybe the most likely scenario for the fed but it doesn't clinch anything and it's also, you know, you can actually cast these numbers as, it's kind of sticky. black rock is out there saying, we're kind of stalling this disinflationary move at a higher level than we should be comfortable with on the other hand, some of the stuff that we know will work their way through the numbers are probably going to help out in coming months so i don't think it's definitive we're lacking any kind of major swing factor news that comes around that's why we're in this really super-tight range for six weeks, really it's like a 3% s&p range, more or less, for this long and to me it means, very low conviction on both sides of this, in terms of real money and so what ends up happening is, the day-to-day gets

dominated by super short-term tactical players, mean reversion, oh, we're going to try both directions and see which one is real. and that's the game we've been playing for a while. >> and these levels, we mentioned, 40, 50 the other day, getting defended no one believes 4200 is going to be -- can you pierce through that those are the numbers, right >> those are the numbers pb that's where we've been since the end of march, essentially. i think there's also, though, a low-energy consolidation going on in the vast majority of stocks any look at things like the equal weight russell 1000, it's bumping along there, not too far from its lows for the year that's an answer for people saying, wow, this market is oblivious to the risks no, it's not the s&p 500 looks like it's resilient relative to what's going on in macro, but it's not as if it's not getting into the places it needs to go. we have regional banks down another 1% today that seems to be not news-driven, just kind of the malaise over the that sector, and the sense that we lack any

kind of clairing moment for the credit situation >> but that's important for the broader market, the fact that we're not -- maybe we will deteriorate on that move in regional bapnks. it's dragged us down before. >> we could see it but instead, it's sort of like we're just reprocessing the same conditions over and over again at some point, if we get better clarity on the earnings outlook really can be believed for the second half. i don't think the average stock is like super expensive relative to where it's been, even over the last 30 years, i'm looking at some data >> the knock on the market is expensive. >> it is on a dated basis. the s&p 500 it is itself but not necessarily spread across the entire index. >> mike, thanks. we'll talk soon. for more on cpi and the latest on the debt ceiling discussions, let's bring in national economic counsel deputy director bharat ramamurti today from the white house. great to have you back let's tackle cpi first they always say, wait until you see the whites of the eyes of

inflation. do you think we're getting anywhere near that point >> well, we're clearly making progress and getting closer and closer each month. this is the tenth straight month on an annual basis, where inflation has come down. it's down about 45% compared to last year. at the same time, we're continuing to see wage gains, so that over the last ten months or so, real wages, wages adjusted for inflation, are going up. and of course, over that time period, we've also gained millions of jobs overall, the economic picture is declining inflation, job growth continuing to go up, and wage growth continuing to go up, which i think is a really good picture. >> this there a sense there tha shelter will be a consistent lag and therefore we can count on maybe another print, where it is the lowest month on month in a year >> yeah, our estimates are that housing is going to continue to be a positive contributor to inflation. in other words, continue to bring it down, as that data continues to feed through into cpi. and i want to note, one other important thing for a lot of folks out there, food prices for

the second straight month actually came down, which i know is a big relief for families at the grocery store. >> so what do you expect at this point for the overall economy? we're getting signs that this is the high inflation, the rate shock, that it is weighing on the consumer you see it in business confidence, now we're starting to see it in consumer spending the bank of america credit card data, for instance, which has been super strong. are you worried that the stimulative effect is finally wearing off and the consumer is making a turn here >> no, i think what we're seeing is what the president called for last year, which is a transition to steady and stable growth. we came off a period of pondering during the first year, year and a half of his administration, where we were in a very rapid recovery, where we were gaining millions of jobs and seeing a huge increase in economic activity. that wasn't going to be sustainable for year over year what we want is more steady, stable growth. i think we're seeing data consistent with that whether it's on consumer spending, whether it's on business investment, and so on

again, i think overall, the picture we have is of an economy with declining inflation and steady, stable job growth, steady economic growth, which is exactly the kind of goldilocks approach that we want to see >> what's going to happen with the debt ceiling is the president going to negotiate with the speaker in terms of spending cuts to get this deal done >> well, look, it was a productive meeting yesterday the president made clear that defaults should not be an option and that if folks in the room agreed with that, remember, we've never defaulted on our debt and a default would create a devastating economic crisis and immediately throw the economy into a recession the president has also made clear, and he's made clear for months now, that he's perfectly willing to have a conversation with speaker mccarthy and other congressional leaders about tax policy, spending policy, our budget, but not willing to do that under the threat of a default. i hope that we will continue to make progress towards that outcome. taking the threat of default off

the table and then simultaneously starting these bipartisan, bicameral negotiations about where we go on tax and spending policies >> we've been watching the treasury secretary reportedly reaching out to business leaders, asking them to convey a sense of urgency we just talked to mary barra of gm about it a few minutes ago. do you think that business leaders have been vocal enough about the risks and what might happen if we approach default? >> look, i think there have been a lot of voices out there that have made clear that a default would be devastating to the economy and should be avoided at all costs. whether it's the folks in the housing industry, folks in the agriculture sector and elsewhere. i think it's unequivocally the case that a default would be a brutal blow to the economy and would be a completely self-inflicted wound look, we've come out of a two-year-long recovery here, where we've seen the fastest economic growth out of any leading economy, and are more well positioned than any of our

leading competitors. it would be a real reversal to have a default, even a short-term default, which our counsel of economic advisers have found would immediately cost us hundreds of thousands of jobs and throw economic into reverse. it would be completely unnecessary. all we're asking republicans to do is exactly what they did three times under donald trump, which is raise the debt ceiling without conditions and then we could have a conversation about our two contrasting visions for tax and spending policy in this country. >> but president obama negotiated, and the fact that president biden says he is willing to have a conversation about spending cuts, what kind tie it to these negotiations i know that you don't want to hold the country hostage, but we do need to do this and republicans clearly have a mandate now. they were able to pass this house bill to do something about our debt >> i think folks should understand, we can't be

governing crisis to crisis what they're proposing is a bill with such severe cuts would push us closer to recession and what they are proposing to do is address the ceiling for about a year so a year from now, we would be right back in this position to get other parts of their bill into law, while at the same time, they don't have a majority in the senate or the white house. it's just not a good way of running the world's leading economy. we can't have this kind of perpetual uncertainty and crisis-to-crisis governing what the president is trying to do is restore stability and safety to the economy. take this possibility of default off the table. and then do exactly what he did last year, which is convene republicans and democrats on both the house and the senate, have good negotiation where nobody is going to get exactly what they want, but at the same time, nobody is threatening to blow up the global economy if they don't get their way, >> finally, how do the white papers and the op-eds that talk about the 14th amendment get

read in the oval office? or does that lead us to a different kind of crisis the constitutional kind? >> the president said yesterday that he's examined that option and he thinks that there are some pros and cons to it, that he made clear. but it's really ultimately on congress they've done it 8 t78 times in country's history. three times under president trump without any controversy or fan fanfare. they simply addressed the debt ceiling and moved on all we're asking for is the exact same treatment here. and remember, while they were addressing the debt ceiling three times under president trump, they were adding 8 trillion in debt during that time period. so, i've got to say, some of these concerns about our physical position ring a little bit hollow after what they did when they had control over the purse. >> two very big stories for the markets right now. we really appreciate your guidance on them good to see you, bharat ramamurti, joining us from n kreec joining us after the break,

brian chesky joining us. stocks getting hammered after a tougher outlook on the second quarter. and riinchste lagarde's outlook on stubborn inflation with the european close just minutes away don't go anywhere. is going t”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living.

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so boost your bottom line by switching today. comcast business. powering possibilities™. let's get to our earnings interview of the morning airbnb delivering a beat across the board in q1, but the guidance for the quarter had sending shares lower this morning, predicting tougher comps for nights and experiences

booked in the second quarter joining us now first on cnbc, right here at post nine, airbnb cofounder and ceo, brian chesky. brian, good to have you here >> thank you for having me today. >> so the quarter was good >> great quarter >> the outlook, not so much. big thumbs down from the market. >> we're being a little cautious about q2. part of the reason why, we're lapping so ping omicron and we're seeing pressure in north america on affordable. people are more focused than ever on affordability. that's why we're really focused on trying to make sure that prices are modulated in north america. last week, we made a major series of upgrades talk us through the pricing strategy a little bit more how much higher is it than pre-covid levels and where does that go? >> it's about 30% higher, but a lot of the increase is also a mix shift. people traded from smaller apartments in north america to larger vacation homes. but we do need to make sure that

airbnb remains really competitive. so there are a few things we're doing. the first thing and most important thing is make sure we have new supply in the platform. last year, we added 900,000 incremental listing to airbnb. that's number one. number two, we're having two discount tools for hosts a lot of hosts told us they don't know how much to charge, so we're now comparing and seeing who's getting booked and who's not getting booked in the area third, we launched airnb rooms it allows you to stay with a host average price per night, $67 per night. all of these things will allow us to be the most affordable way to travel once again >> a lot of people did note the supply growth that you saw, that you just mentioned >> it's so important >> but wondering if supply is now growing faster than demand >> it is that's ultimately a good thing, because the supply growing faster than demand, it increases selection, lowers prices, and greater selection and lower prices lead to more customers. >> i was going to ask, what does that do for revenue?

>> ultimately, it will be great for revenue in the long run. it will bring more guests to airbnb you want supply in advance of demand what happened and in 2020, and 2021, grand surged, and that was great, but grew faster than supply ultimately, that's good for the bottom line, in the short-term, but you have to make sure you're delivering great value it's really about balancing supply and demand. that's a bit of the secret sauce. >> does a more-pressured consumer naturally lead to more supply you need some extra income, you rent out your room >> absolutely. that may be part of the reason why in a great economy, demand outstrips supply in a not so great economy, you start getting more supply. but ultimately, that makes prices more modulated and that will create more demand. >> we've talked to a lot of hotel chains after their quarters do you think legacy lodging will make a mistake on their pricing? are they going to pay for this >> i'm hearing that they anticipate prices going up over the course of the year our hope is that our prices do not go up, especially in this economy. they either stay the same or

potentially go down. if that happens, i think we'll see a lot more demand and potentially more mix shift airbnb >> increased marketing spend, that was a big reason for the guidance >> it was also just change in timing we intend to spend about the same amount on marketing as a percent of revenue this year but we are spending it earlier in the year. >> i was wondering if you are increasing it and how you'll judge that return on investment? >> it's really the same as before we have a full marketing strategy that involves pr, brand marketing and performance marketing. most people in travel, they just do direct marketing and a little bit of brand marketing we try to do something that's much more full frontal we get hundreds of thousands of articles every year, much more earned media and 90% of our traffic is direct or unpaid. and i think it's going to stay that way >> so ultimately, i know tough compares with the omicron, where does growth grow after this incredible spurt that you had during covid >> i think it's just beginning ultimately, there's a few things we're trying to do number one, we want to mainstream hosting, get a lot more supply.

that's going incredibly well we had nearly 1 million new listings last year, that's growing. two, protect our core service. the biggest strength of airbnb, it's one of a kind the biggest problem with airbnb, it's one of a kind that means it's sometimes inconsistent i think there'll eventually be a tipping point where the service gets reliable enough that a whole bunch of people that only stay in hotels would consider airbnb that's where we're focused next, we have a huge amount of opportunity to expand beyond the core first, international markets tons of growth in germany and brazil, where we had a lot of international investments. we'll be focused on asia we are massively underpenetrated in asia and parts of latin america and europe and finally next year, you'll see more markets and services from us. we'll be expanding beyond the core >> i was looking at some top google search trends, and there's record high about things like, what to talk about at the office, or commuting to the office i wonder if return to office will be a headwind >> i think we're in that post-pandemic equilibrium. i don't know if we'll see more

people in the office than we do today. this is probably the new normal. but in the future, people will still want flexibility even if people go to the office will want to go away for parts of the summer or the winter. and i think the world will get more flexible. with ai, it's going to be easier to do your jb in more places, more quickly i think woule'll see more distributed workforces around the world. i think flexibility is here to stay >> you sounded pretty optimistic on ai and the impacts of your business what has it changed? >> it changes everything >> for airbnb. >> it changes a few things in the short-term and a big thing in the long-term in the short-term, it will make customer service much more efficient. and we don't have a front desk if you knew every time you got to an airbnb would be good every single time and if it wasn't, you would get help right away, a whole bunch of people that don't use airbnb would i think ai helps that problem. instead of asking you questions like where are you going and when are you going, we can ask

you bigger questions like who are you and what do you want and suddenly, the ask could be a personalization layer built on top of these large language models i think there's something really exciting here for travel >> what's the time frame everyone wants to know ai is impacting the business by when and what sort of magnitude? >> i think in the next 12 months, you'll see major changes to our customer service, the quality gets better, the costs will be lower. that will be in the first year develop our productivity, could be 20 to 30% more productive it's hard to know exactly. i think in the next couple of years, you'll see the whole paradigm of airbnb change. i think we're built on today's technology, but we are bringing things like jpd-4 into airbnb. i think you'll see a whole new app in 2024, 2025. >> final new york city question. are you hurting in new york? are you losing listings because of the new laws that went into effect in '23. >> it's hard to say how this will replay out. i remain optimistic. there was a law passed in 2010, it's been 13 years i used to say new york was going to be a model city

we'll figure it out in new york and bring it everywhere. we have laws in the books in hundreds of cities around the world. 80% of our top 200 jurisdictions have laws regulating airbnb and recognizing it new york is not the first, it might be the last, but i'm still optimistic >> not making a big dent >> i'm still working with the city, and i'm optimistic there will be a resolution, but we'll have to figure oit out >> brian chesky, ceo of airbnb when we come back, the ceo of edgewell is with us, parent to brands like schick, playtex, banana boat. the market really liked it at and watch affirm today, it be last night, but sinking many this high interest rate environment. stocks nearly 70% off the 52-week high stay with us td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that?

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release of the u.s. inflation data, cpi number coming in a little light, which was good news for the markets the story abroad this morning, though, is the european central bank some hawkish language from european central bank chief. ecb president, christine lagarde, hinting more rate hikes could be coming, warning of stubborn inflation and the head of greece's stcenta bank in the ecb agreed saying rate hikes would end in 2023 they're talking tougher, tougher than fed and we've been sort of following this story of the divergence in central banks with europe in a single inflation mandate clearly not finished with what it has to do with, despite inflation the big question is the fed. we just don't know yet ahead of june >> we're definitely in that channel where a lot are pivoting and of course the two big ones but in that weird sort of transition phase, where who's going to make the move >> and the question is, is there anything -- is there anything

disruptive about major central banks going in different directions yes for the foreign exchange market usually, but as long as st behaving it is, nothing's too sharp, it hasn't necessarily been a bad thing remember, the fed went a few months before the european central bank overall, it's been mostly coordinated, but if we start diverging, we'll watch things like fx and the imbalances that might have the money flows all around >> indeed. >> as we always do up next, jpmorgan's phil camporeale details the opportunity cost of hiding in cash >> and why cost cutting is the focus for iger and investors ahead of earnings. we're back in just a moment. en , 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) visit your verizon store during our spring savings event

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welcome back to "squawk on the street." i'm leslie picker and here's cnbc news update at this hour. after more than 11,000 migrants were caught crossing the southern border on tuesday, sources tell nbc news the biden administration is now preparing to begin releasing some into the united states without the ability to track them. the new policy would release migrants on parole with a notice to report to an immigration and customs enforcement office, but without assigning them a set court date twitter could launch encrypted direct messages today with plans

to introduce voice and video cha in the near future in theory, twitter and musk would not be able to see or intercept any direct messages that are encrypted ceo's elon musk fully outlined his plan to boost communication features on the social media service via a tweet from his account. and wendy's is teaming up with google to make their drive-through experience high tech the restaurant chain will start testing artificial intelligence in a drive-through at one of their corporate-owned columbus, ohio, stores starting in june. there is no word if this service will eventually lead to fewer human workers, but sarah, may be a robot asking you if you want to super size those fries in the near future. >> yeah, i guess so. popping up everywhere. thank you, leslie. who hours into trading, let's get a check on what is driving today's market action, bob we're off the highs. let's go post-to-post. you're on the floor, what can you tell us? >> we're up, but not by much everybody wanted the inflation numbers to be below 5% on the

cpi, 4.9 was good. high print was right at the open and we're sort of moving sidesways. it's frustrating a lot of people, pause the usual suspects are moving, and everything else is dead in the water what's the usually suspects, big cap tech here's another new high for salesforce it's essentially at a new high has been a big mover along with apple and microsoft. the more defensive sectors have held up pretty well, but even they're having a little tougher time of it here's walmart, for example, classic defensive, knocking on the door of a new high and as soon as the banking crisis hit, walmart took off walmart was 137 in the middle of march. that's a big, big move for a company that's the size of walmart, about $15 here. and remember, it's going to report next week, may 18th that will report on thursday one of the big retailers we'll be looking forward to. but those defensive names aren't helping as much as they used to anymore. and we've had other problems like the bank still keep dropping there's not a lot of news here, but all of these regional banks, comerica down 3.5% again

1.2 million, see, that's not much of anything remember i kept telling you a few weeks ago, we were seeing four, five, six, seven times normal volume, this would trade 5 to 6 mill shares a day this was not much volume that's not a good sign it means that you have a situation where two weeks ago, three weeks ago, there was intense selling pressure on the stock. now there's just no buying interest that can be just as bad as no -- as intense selling pressure. it's the same with key corp. here's another one it's down 2.5% this usually do multiple, multiple shares here used to do 25, 30 million shares a day. look, it's going 6 million here right now in the muddle of the day. again, no intense selling pressure, but no buying interest we've got to find a floor under this to help stabilize the overall market and get some of those cyclical stocks moving as

well carl, back to you. >> bob pisani, thank you our next guest says he expects a soft landing for the rest of the year as we shift away from a hard landing scenario, we'll see stock and bond volatility fall further. the vix down today, at least back below 17. joining us today, jpmorgan asset management's phil camp relly good to have you back, phil. is it just me or are you getting a little more constructive here? >> here's what we were saying. it all starts with our friend down i-95 at the federal reserve. this is the first time, carl, that i come on your set in over a year and say, we don't expect the fed to hike rates at the next meeting that's a statement it start there, because i think the two roads that can take you to a hard landing, the first road was what we were worried about six months ago, when we were worried about the fed needing to break the back of the economy in order to get any disinflation to occur. after ten rate hikes, i think there's significant evidence of disinflation and the other road is around the regional bank story. and it's not just credit lending, tightening, i think

there's a slower burn story over the next couple of quarters. it would be more the fact of, is there a chaotic deposit outflows from regional banks that are scaring the consumer and forcing the savings rate higher that would lead to a hard landing scenario if you look at first ass, kind of deposit estimates this morning, about $140 billion, expectations for $120. that's a really good sign, carl. both of those roads, doesn't really look like they're working out. and at the end of the day, what we really love as investors, if stocks and bonds are behaving, in other words, if you're getting the benefit of diversification from bonds, we can sit right now in a well-diversified portfolio and if the hard landing scenario starts to pull through, we know that we're going to benefit from bonds. that's a total departure from where we were last area, went bonds were the problem >> you sure that the fed is -- >> i'm sure -- >> are you sure that the fed is done raising rates

>> you heard john williams yesterday. >> so here's the way i would describe the fed we are not subscribing -- very clearly, year not subscribing to even that is priced into the federal funds futures market in the back half of this year and that's starting in late summer, early fall we're not at that point. but for that to happen -- >> if you're not at that point, how are you bullish? that will be tightening when that gets priced out of the market >> the easing can only happen in a hard landing scenario. we're not hoping for an easing over the summer. if that's happening, something is broken. i think the earliest we can get to that easy is december of this year, early next year, not based on the hard landing scenario, but on the fact that inflation probably at that point could be between 3 to 3.5% and you do not need a 5.25% federal funds rate at that level. that's where the soft landing scenario comes in. they're easing because inflation is falling, not because of hard landing. and you guys have made the point

that there is a subymmetry. it's a thin path to a soft landing and a lot of things can break. >> there's certainly a symmetry on the stock side. so you need the immaculate disinflation story, the no landing story, where growth stays very robust and you get inflation to fall. that is not what we're saying, importantly. but we really do believe there's a lot of good risk/reward opportunities into the corporate bond market. and that is what is keeping us invested so you have additional yield that you're getting from the corporate bond market. you keep your equities out around mutual allocation out-yield your index and create alpha that way not the most glamorous trade in the world, but it's important. >> do you want to stay investment grade or -- >> investment grade. if we're solving for income, sure, go into lower quality. but we are really preferring liquidity and quality right now in both the stock selection and the bond selection >> you say your biggest competition right now is some t- t-bills, because of what we're watching right now in d.c. >> not because of that necessarily, but because the yield curve is so massively

inverted and people are saying, i can get 5% risk free however, the 60/40 portfolio today is up about 6% so to get that 5, you need the whole year for it to happen, and in three months, you need to reinvest that. what's to say that you're going to be able to reinvest that in three months we think that for folks that hid in cash last year, that belong in a different risk profile, it makes sense for them to get just diversification. we're not asking to go from cash into stocks, just get a little more diversified now >> everything on the soft lanland ing scenario and the markets makes sense, but isn't that why year-to-date the s&p is up 7.5%? isn't that baked in at this point, where the risks now from here are on the downside >> yeah, and again, in order to be overweight stocks, sarah, we have to have a view that earnings are going to accelerate and that growth is going to be trend or above trend we do not have that view we're slightly underweight the u.s. the stocks that have performed this year are performing for a reason, because they're higher

quality with free cash flow that don't necessarily get affected >> the giants. phil, that's good stuff. phil camporelli. last time alpha showed off their a irk chat bot, it cost the company $100 million in market cap. it's a big test and it happens today at google io we'll go to mountain view after the break. >> the decline in oil prices severely impacting that stock, as earnings dropped off by nearly 50% last quarter. just dayafs ter warren buffett said, remember, he wouldn't buy occidental outright. it's down almost 4%. we're back in two. and retirement savings. with voya, considering all your financial choices together... can help you be better prepared for unexpected events. for a brighter financial future. thanks. ahh, pretzel and mustard... another great combo. voya. well planned. well invested. well protected.

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we'll get there together. big task for alphabet's ai capabilities and sundar pichi at the developer's conference deirdre bosa is there with what to expect for today's tech check. >> i'm in mountain view, right across the street from google's campus and google has this developer conference every year, but this year is the most important it's seen as the next big catalyst in the ai arms race that we spend so much time talking about these days so google will need to deliver on a few things. and here's what we're looking for. first, google will have to excite developers. that's what it's all about, right? bernstein writes this morning that winning over developers is the real war and when you think back to the smartphone era, that's the case

in point it was won by apple and google, because they were able to convince developers to build apps for its ecosystems and then the users followed second, google is going to have to easy investor's skepticism. you might remember that event in paris, the first real ai event a few months ago google lost some 8% on the day, billions in market cap so really gave the lead, at least in the zeitgeist, to microsoft and satya nadella and chatgpt. so it has to show investors today that it is not falling behind in this race. and three, google needs to excite consumers i don't know about you guys, but chatgpt has entered the lexicon. sometimes i get blank stares when i say the word barred, so it has to come out with something flashy and shiny satya nadel has been more excited and aggressive in promoting chatgpt. we'll see if sundar pichai can

do similar things. >> the juxtaposition is interesting right now, holding these big, flashy events to showcase new technology at a time where the company is doing layoffs and belt tightening and dealing with pressures on the ad market it's not alone in this. >> reporter: yeah and those two things really seem to be at odds it pulls out all the stops for this event and tech companies in general, when it comes to microsoft, google, meta, apple, they all have to show that they're leading in innovation, but creating efficiencies in other areas of the business. but artificial intelligence is certainly one area where nobody is scaling back. and none of the big tech companies want to look like they're scaling back remember, this is ant separate event for artificial intelligence this is its annual developer conference this was planned well, well in advance. it's taking this opportunity to showcase artificial intelligence, not like microsoft, which created a whole new event around it. >> dee, i wonder, are they expected to perhaps roll out big

partnerships with well-known brands or companies that say, look, here is an interesting juice case you can take to the bank >> yeah, well, we saw that with wendy's, right they'll use google's technology for the drive-through technology but here, the main point is they want to win over developers. i think that many of the new and latest artificial intelligence apps are being built right now and a lot of the developers that are going to build them are here in mountain view google has to show that it has the tools for them to build and capture the zeitgeist and the new suite of products that we're going to use in this platform shift. >> deirdre, thank. deirdre bosa at google today after the break, shares of edgewell have doubled the gains of the s&p 500 this year the ceo joins us next on earnings plus, take a look at shares of rivian. big boost ashe t ev maker reaffirms production targets for 2023 and capex we're back in a moment

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cpi print and who better to help us break it all down than our next guest, edgewell personal care. the company behind brands like schick razors, banana boat sunscreen, play stex, deliverin beat issuing upbeat guidance for the year ahead and a big move

higher in the stock yesterday on the news, pulling back 1% today. joining us now in a ceo exclusive, edgewell ceo, rob little it's great stoto see you again >> great to be with you. >> broad-based gains in volume and in pricing across the categories, across geographies what are you seeing from the consumer right now >> yeah, sarah, the consumer's resilient. they've been resilient and you see that in our results. we grew over 11% organic net sales in the quarter we had broad participation all categories, business units grew all geographies grew and what was interesting to us about our results is we're seeing unit volume growth in addition to the pricing. it was a very high-quality quarter for us our best quarter in at least over the past five years in addition, the profitability is coming along as well. adjusted earnings per share up

16%. adjusted up like 40% it was a good quarter. categories are healthy, and the consumer is still there. >> the thing is, rod, we need inflation to come down in this economy. and we're starting to see it at least moderate consumer staples, though, like yours, the price go from here on some of the basics products >> completely i agree on the need to have inflation come down look, we put pricing in, and most of our pricing for the year has been put in, accepted by retailers. and, as i mentioned, consumers are still purchasing at that pricing. we're not seeing elasticity moving it's still lower than what we've historically seen. pricing in has been accepted we're still seeing inflationary head winds in two areas primarily. one is wages and labor, costs much higher than traditionally we see on average. and the second is any specialty

material is still showing high levels of inflation, for example, sun care chemicals, and that's more around supply/demand mismatch where supply is still strong and demand is still constrained. where we are seeing good news is in the broader commodity basket, oil, natural gas, the feed stock. all of those types of materials have come well off their highs and we're actually seeing a deflationary environment there it's still net inflation up when you take it all together >> just going through the portfolio, this is one of the more recent acquisitions you did direct to consumer, now you're starting to take it into stores away from the walmart deal, and i wonder how that's going and what the long-term growth opportunity is there >> correct, sara we've just launched billy national which exceeded our expectations it's a fabulous brand. the target is very clear

the branding, the marketing is amazing, and it started digitally. it was all online direct to consumer via a subscription. it exceeded expectations at walmart. we're now national what's interesting about billie, which is not only growing share for us this year, our whole women's shave portfolio is now growing share. intuition and hydro silk has grown share in the most recent period we have a lot of momentum in women's shave and we love the portfolio because billie is in the value oriented price tier from a pricing perspective which is a good value for consumers looking for that >> rod, i am curious on that point about marketing strategy if the consumer does start to roll, does that mean you step on the gas because they are more open to changing their minds on brands >> carl, look, we stay very close to the consumer relative to our portfolio because we have

premium price all the way down to value tier. a little known fact with us, we control 80% of the market. our market share of private label in the market and, by the way, we're not seeing consumers trade down to private label. that part of the business is strong one of the things we've gotten better at is behind our results, we've gotten much clearer on the consumer target for each brand that we have and now in the age of digital media and almost 100% of our media is digital today you can pivot to see where the consumer is going and what messaging they're resonating to, and, frankly, where they're buying there's a lot of flexibility to move spend around. >> this was something some of your peers talked about in the recent quarter, the ability of language learning or ai to really target audiences where there is a lot of waste in marketing. if you're targeting somebody with a young child, for example, or a baby there's a lot of

spending you have to do that doesn't quite hit them but that kind of gets more efficient in a digital age. >> we're seeing that and ai we're just at the beginning in terms of where the roi can go on spending with ai all the way from how we create the creative cycle time as you work through that to just what's in the background in terms of pointing the spend. it's becoming more automated certainly. >> rod, appreciate the time today to talk us through what you're seeing. >> thank you >> very strong performance in the stock this year, rod little from edgewell. meantime, after the break, updates from iger on his $5.5 billion savings target why cost cutting is so much in focus ahead of disney tonight.

this afternoon belongs to disney earnings after the bell and that's what wall street has been buzzing about. julia boorstin joins us with what to expect julia, i asked cramer this morning whether the good quarter from six flags was a decent read through for disney and his point was, do they have a streaming service? because that's what the street cares about.

>> reporter: the parks division has been strong for a very long time now, so much pent-up demand after the pandemic and it seems that demand has just continued yes, so much focus on streaming. investors would really like to see iger show the losses associated with stream are shrinking and of course, guys, we need to hear what he says about progress excuse me. what he says about progress towards that cost cutting. he did commit to $5.5 billion in cost cutting they are laying off thousands of employees, so wanting to hear how that is all going. >> not related to earnings, julia, but do you expect them to talk about the battle with florida since it has heated up since last quarter >> reporter: there are so many factors at play beyond earnings, the battle with florida is huge, it's continuing to escalate. i think we might hear about that from some analysts what's so interesting is originally the area they were debating over and this question over how to manage that tax

district was not really material to their results but as it has escalated it could be far more material to the business over the long run so we're going to be listening probably for questions more on that rather than disney talking about it up front. but then the other thing is also the writers' strike, something we've heard about from various ceos in the media space including earlier this morning, how long will this drag out and how will it impact this quarter of the business and long term if they're going to have to pay writers more for everything in the streaming space. >> a great we about how efficient ai will be >> they can't give you a larry david was the answer, right? >> exactly maybe a useful brain storming tool but not replacing the content machine entirely

i know they're using ai a lot whether it's in visual effects or to try to improve the parks the question is how much they're using generative ai. >> we'll see you tonight, thanks julia boorstin on disney with a flat market after yesterday's narrow range >> those hoping for a weaker inflation report might have been hoping to see a better market reaction haven't held the gains but doesn't give us much guidance. >> ppi tomorrow. to the judge carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center this hour, the break in inflation, the cpi hits a two-year low the investment committee debating what it means for stocks and your money and maybe not the reaction people were looking for. we're joined by professor jeremy siegel joining me joe terranova, jenny harrington, sarat sethi. i referenced what's happening within the market. initially a