tworry. so you never- no. never. join 17 million people and take control of your financial future to empower what's next. start today at empower.com good day welcome to "power lunch. alongside kelly evans who is just over there, i'm tyler mathisen coming up today, it is a merger monday several big deals happening today, is it a sign that corporate america is getting ready for an economic recovery down the road, buying low in hopes that values go higher? commercial real estate called the next shoe to drop we'll talk to a big cre investor about what he's seeing in office retail and residential we'll dive through it. hi, everybody. i'm over here checking on the markets where the dow turned negative again it was positive about the last hour, down five points

by the way it's down for about the eighth day out of nine while the s&p is up 7 points today, 4131 and the nasdaq up half a percent. we've seen considerable energy, mining deal. we'll start with the energy. one my magellan it's a $14 billion cash and debt deal one oak shares down. this would be the biggest deal of the year so far dan pickering thinks it will be a slow cycle but activity will pick up. newmont buying newcrest for $17.5 billion. it's the biggest gold deal and a copper play. we've seen shares up 3%. and shares of western digital are also jumping on reports you guessed it speeding up merger talks with the japanese memory chipmaker a 10% pop. this is an israeli based provider of services to online lotteries and an australian company buying them for a billion dollars and these shares have doubled on that news.

also had microsoft news on the activision takeover, eu giving it a green light it won't help with the uk which blocked the deal weeks thing >> a lot happening on the corporate agenda several things, first as mentioned, m&a activity is picking up over $105 billion of deals made across various sectors of the economy today alone. next, a new report from "the wall street journal" showing that ceo pay sharply fell alongside the markets over the past year. the debt ceiling drama continues to make headlines and executives trying to figure out the best way to position for the uncertainty. let's make sense of it all with suze welch, professor at stern schooling of business and conference board steve acland. what does all this merger talk

and actual mergers taking place, what, if anything does it signal about the pace of deals or ceos' view of the economy? >> a lot of these deals have been in the works for many weeks, if not months, so them all falling on the same day doesn't -- i don't think it's a sign that we're seeing confidence in the economy. i have a funny view because i rec coshay in my life between teaching mba students and then advising ceos at brunswick they agree on the fact that there's no more certainty in the economy anymore. there's the -- you could say there's sort of the seven horsemen of the apocalypse, like the fears of the recession, debt ceiling drama, the list goes on and on we know the usual suspects what that adds up to is just lack of certainty. what you're seeing, perhaps, this is a theory, is that ceos at these companies are saying there's never going to be a certain time again

let's make those deals there's not going to be any way to time the market anymore we're in a state of crisis let us agree that crisis is the new normal and move forward and that, if anything, explains all the deal activity today. >> steve, why don't you react to what suzy said, provocatively, about certainty and uncertainty and what do you think explains the deals that are either rumored or are taking place? >> i think suzzy hit it on the nose a record 2021, a terrible 2022, everybody was excited for 2023 we thought we would get through this and the pace has not been great. we've been -- it has been 18 months in pipeline here. you've got the cost of equity very high and, you know, you've got valuations in a lot of industries just way too high consumer products and those industries able to take pricing

and pass it through and, you know, their stocks have done well debt at a high level versus where it's been. look at p/e markets. you've got a lot of equity raise, funds raised by private equity firms looking for the right deal here. some things break loose on tech and biotech where valuations have been reduced. this uncertainty thing, suzy couldn't have said it better uncertainty is the killer for ceos ceos need to know what the policy is, where interest rates are going, the macro environment and none of that is clear at this moment. >> it also feels natural to me that we would have, you know, during the bull market, tons of new companies and ipos wouldn't consolidation be the natural kind of next thing to happen here? >> yeah. and, you know, look, a lot of companies would love to have it. the problem is making the numbers work you dot long-term numbers and if you're talking about an industry where valuations are high, debt

is high, the numbers aren't going to work and you will not be able to give the premium to current shareholders if beaten down is now the time what's going to happen here? is the uncertainty you see people like you recognize today, people saying forget it. we're going to bulldoze through this thing because, you know, we need to break it loose i actually hope that this is a harbinger of things to come, but -- and maybe they're betting that the interest rates are at a peak, but look, most ceos say there's a recession coming and, you know, we've got to baton down the hatches for that. i don't think this is a long-term thing. >> we've got three items we want to cover i'm going out of order because it plays into this idea of uncertainty and my question has to do with the debt ceiling discussions going on here is a huge uncertainty are most of the ceos that you're tog to or counseling, are they of the view that one way or another, this debt ceiling thing is going to get resolved and

that all of it here is much ado about nothing, to mix my metaphors? >> the vast majority are saying we've seen this movie before two cars are driving towards each other very fast and at the last month one of them veers off and it's a very happy ending to a movie. that's what you hear most of the time you hear ceos and sometimes the same ceos saying we've seen this movie before, it's going to work its way out, and then some say, but nothing is the way it used to be. this may actually have a scary ending maybe this is the time that the ending of the movie is different. it comes down to the confidence and experience of the ceo saying these work themselves out, or newer ceos, younger ceos, ceos are more nervous and may be

doing deals but smaller ones >> one of the things brian reynolds is warning about if the debt ceiling is resolved you could see deposit flight pick knew money market funds which a lot of corporations can't move money into because of the debt ceiling uncertainty. more money goes in there and comes out of the bank and brings the bank issues back to the floor. >> yeah. the markets are saying it's not going to be an issue the u.s. markets within 1 or 2% of an all-time high. so the markets are saying ho-hum, no big deal. the problem is if they're wrong this time, it's catastrophic i mean, it's just unthinkable that this would happen seven of the last ten ceiling -- debt ceiling issues are periods of time when this has happened, they've been negotiated. i think people are going, okay, you know, they'll figure out a way that's a lot of, you know, politics, and ceos hate politics

because, you know, all of this stuff is not good. this uncertainty is not good for the economy, not good for customers or consumers and wish they would stop this stuff and playing around with the debt ceiling. >> let's close with a little quick discussion on ceo pay. did ceos feel in the pocketbook the purse, the rough year that many companies had in the stock market last year >> he they had to. because their compensation was tied to stock performance. i think if you say that ceos hate talking about the uncertainty of the debt ceiling and uncertainty period, they hate talk about their compensation it's the worst optics in the world to talk about how much you pay and people thinking around the differential between what you make and the average worker. sometimes their boards have different feelings how they should be paid and they are attacked for decisions that the board makes. of course some ceos felt it. they hate it being talked about

and i don't think very many are in a grab to get more right now because it doesn't help you get the job done when people are talking about how much you make in quiet rooms where you are not. >> sundar pichai made $225 million last year just for the record appreciate your time today we have breaking news ahead of that senate hearing tomorrow, let's go to leslie picker for the details. >> hey, tyler. executives from both silicon valley bank and signature bank believe the respective firms were victims to bank runs that stem from prepared testimony that was posted ahead of a senate banking committee hearing tomorrow on their respective bank failures. greg becker, former ceo of silicon valley bank will say after silver gate failed an article linked the portfolios of the two banks, $42 billion in deposits were withdrawn from svb in ten hours or roughly $1

million worth of deposits every second he will say, quote, i do not believe that any bank could survive a bank run of that velocity and magnitude, which was far beyond historical precedence co-founder of signature bank will say that after silver gate failed, depositors withdrew 16 billion from his firm within a few hours. still he will say he did not think regulators needed to seize the bank with signature bank, quote, in a strong position to weather the storm. potentially fireworks ahead at tomorrow's hearing. >> appreciate getting the detail now from everybody involved as he will -- the heat will be turned up on them. the ceo of trax, the decking company, about what he's hearing from consumers and their willingness to spend on home improvement projects stocks up fractionally green today. the best performing group in the s&p right now, key corp, one of

the regionals hard hit the utilities are the worst performer and amerren the worse performer. the 10-year yield 350 after raphael bostic on "squawk box" said inflation is not coming down quickly 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

it may be spring outside, but the housing market is still in deep freeze high rates and low inventory are keeping people from moving, mortgage originations hitting their lowest levels. many assumed this would be good news for home improvement but key banks expects spending to slow in the coming months. baird and mkm echoing cutting estimates on home depot and lows home depot reports tomorrow and lows next week lowe's hanging on to a 1% gain decking material manufacturer trex is seeing nice benefits from home improvement and posting a beat last week and the stock is up nearly 35% on the yore joining us now is bryan fairbanks trex's ceo welcome. >> thanks for having me this afternoon. >> to familiarize everybody here, you do the composite decking and water resistant, give us all the features here and why do you think your product could be taking share

from lumber? it's amazing you're doing well when lumber prices have fallen >> we manufacture composite decking and railing for outdoor use. something unique about the trex company we do it with 95% recycled and reclaimed content we've been doing that since inception with the trex company. in 2019, we launched a product that would allow us to go directly after wood. so you're right, the price of wood has decreased significantly over the past year and a half, but with our enhanced product line, it's priced about two times the price of wood, market research has clearly showed us that's where the customer starts to make that decision to move over to composite decking. there's about 75% of the market available for us to go after as we continue to grow as a company. >> what i see in the neighborhood that i live is a lot of people building elaborate outdoor living spaces. they're not just decks anymore

they are decks with kitchens, with enclosures for the television, with basically, lovely cushy furniture the size and footprint of what's being built today feels to be markedly different from 15 years ago, am i right about that or not? >> absolutely. people have a desire to bring the indoors out and they are bringing all of those amenities along with it where you truthfully have that outdoor living room or kitchen and spend time with your family on the deck as well as with your neighbors. >> so let's talk then, brian, what's interesting is kind of the difference between new home construction and the existing home sales market. just because there is bidding wars, just because the home builders have been so strong, doesn't mean that housing market broadly speaking is doing that great. existing home sales down 1.5 million from their peak and the market is kind of frozen in place a little bit what does that mean for your business what is your outlook or guidance

for the rest of this year? >> it's an interesting opportunity for trex and repair and remodeling people will be staying in their homes longer low interest rates they're locked into. they generally have good equity in their homes and rather than making that move up as the family grows, they'll probably stay where they are. we're seeing some of that. those consumers are making the decision to improve their existing spaces. and one of the lowest cost ways to do that is by adding a deck on to the home so we see through this cycle of the economy, continued opportunity for repair and remodel. about 90s to 95% of our business falls into that side of the market versus the new marketplace. >> you mentioned earlier that a high percentage of your product is made from recyclable or reused materials what are those materials that you're recycling and where do you source them? >> we source materials from all

over the country and up into can. to some extent international from time to time. we use a significant amount of polyethylene stretch wrap. people are familiar with plastic bags at a grocery store. if you see a collection center more than likely that's coming back to the trump campaign company included in a deck that's being built. >> plastic bags? that i used to be able to get in my town. >> bring them back. >> by the way, so beware >> right. >> so it's plastic bags is one of the main inputs or the feed stock i guess? >> poly eat len lien a larger source out of a distribution center, stretch wrap, post industrial wrap, those are a larger source. but bags are easily recognizable for people and where communities can help add value as well, too, by being a part of the recycling system and then allowing us to use that material in our great products. >> just a quick loaded last

question, brian, what about deal snaig your competitor azack half the size in a market that is more challenged. is that something you would pursue >> always interested in other areas where we can improve the outdoor living opportunity for our customers along the way, but our primary focus is to grow against wood that's been our strategy for nam of years now and we have a long runway if the right opportunity comes along we would be interested in taking a look. most of what you see is going to be the growth in wood as well as against competition. >> are all your products used exclusively outdoors or is there an opportunity to use them indoors to expand your market? >> our products are used in outdoor marketplace. we have a product that's used for instead of a siding type program it gives you more of a real wood look we have seen that used indoors

in limited circumstances >> thank you very much we appreciate it. >> thanks. shares of trax and azack, 25, 35%, their competitors are getting pricey too. diving into the street talk. three analyst calls, including one more than seven years in the making we'll explain that when "power 's1 stheouurns it 2pa t hr.

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time for today's three stock lunch. let's take a look and we want to start the cocktails early. look at names seeing action from wall street calls. google, shares down just about 1% after the company got hit with a downgrade from loop capital markets. the firm says it's worried about google's a.i. prospects after it laid out plans to ramp up its chatgpt rival bared. here with our trades ari, oppenheimer managing director. what's your take on alphabet >> the technical trends are going the opposite way as far as versus that downgrade that they are still favorable. generally speaking underlying market trends right here are

pointing growth over value than defense over offense and i think these growth stocks still stand to lift the market higher over the coming months. looking at alphabet the stock h has lagged through this recovery and i think last week's strength was confirmation of the turn that marked a meaningful breakout in trend, buying weakness down to the breakout level around 109 and the upside $130 over the coming months where the stock started to break down when this got started selling in the first part of 2022. >> had a great week. let's talk about -- we don't rarely mention, the shares up 3% after deutsche bank upgraded them to a buy, i believe they're basically saying that the stock is trading at a 50% discount to its peers and gone through seven years of massive changes, is now the moment >> we don't think so you know, technical trends are

less upbeat. we tend to think there's relative risk and relative weakness this stock has been a driver of weakness in the market if you're worried about market breadth you have to be worried about areas causing that weakness with the move lower in dupont that completed a pattern that's been playing out since november. we would be selling the strength back into the breakdown level at around $67 with some potential downside risk to $60 over the coming months. >> let's move on to charles schwab finally, the brokerage firm up 5% after raymond james said schaub's core banking business remains strong which could help the stock gain as much as 30%. what do you think? >> i think you can squeeze out more upside here unsure about 30% generally speaking we've argued it's been less about concentrated buying in the tech sector and the resilience of the

market within the financial sector and charles schwab, of course, has been weighed down with this broad-based weakness in the financial sector. we're currently on the sidelines. i think the stock has stabilized from oversold conditions there's more work to be done over the coming months and resistance overhead. with this recent double bottom around $46, i think it's capped around $60 which is where the stock started to break down in that march period. >> all right thanks very much great to see you, sir. appreciate it as always. >> thank you. >> oil closing for the day meantime with gains. nat gas striking as well pippa is back. >> it is bouncing after posting four straight negative weeks for the first time since september the lower dollar supporting prices as well as outages in canada due to wildfires. actually coming off the fourth positive week in the last five that is after we saw the 16 rig decline in the nat gas

you talked about merger monday earlier in the show and one of those deals is one oak and magellan, and it seemed to take wall street by surprise. the companies have different assets one oak all natural gas and magellan all about crude and refined products. that's one reason we are seeing the shares of decline down 1.1%. when we talk about acquisition it's about cost synergy and savings cost and wall street analysts pointed out they have different asset basis, begging the question will there be any type of cost saving. >> it diversifies it one oak is all about nat gas and then the acquisition of magellan increases its focus and makes it a larger company because it has also oil and refined product particularly given how hard it is to build a new pipeline, they are becoming scarcer resources if you have access to that you have a broader portfolio and this is all, you know, fee based. it does increase the revenue

they're getting and the pipelines are a short commodity. however, they can't really have the synergies between the two given that they're different businesses for the time being. >> anything about the 8% drop in the shares today are investors voting this one down >> it's more they're concerned about whether or not there will be any type of synergies between the two and cost savings it came as a price a lot of time you kind of have inklings these deals might come and does seem to shock the street it could go through in the third quarter, that's when it's forecast, given that there's not really any -- given they're so different, doesn't seem to be any kind of -- that's not my area of expertise. >> they'll find something. >> point taken. >> pipa stevens. >> to bertha coombs for the news update. >> here's what's happening at this hour. president biden confirming to reporters he plans to meet with house speaker kevin mccarthy tomorrow to continue debt ceiling negotiations the pair was set to meet with

other congressional loaders last friday but that meeting was pushed back. biden said yesterday he remains optimistic about a deal to avoid usa default but mccarthy said today he thinks the sides are still far apart. the supreme court agreed today to hear a bid from south carolina republicans to restore a congressional district that a lower court ruled a racial gerrymander. the district in question includes the city of charleston. republicans redrew the boundaries following the 2020 census a january ruling claimed the new district was configured to dilute the power of black voters. and the singer the weekend has changed his name on social media to his birth name. this comes after the pop star said earlier this month he was getting ready to close the weekend chapter and reinvent himself and the album he is working on now will be his, quote, last hurrah as the

weekend. presumably a real album, as opposed to the chatgpt one that they made of him and - >> i thought he would change his name to tuesday. >> definitely not monday. >> not monday. >> what's his birth name >> abell abell. >> i'm not sure. >> okay. ahead on "power lunch," some expert are warning commercial real estate is banking's next worry. commercial relending is tanking. data from goldman points to a thspk r low and we'll eato e ceo of torist investment holdings after this on "power lunch. a third kid. what if she likes playing golf? it's expensive. we're outlawing golf. wait. can i still play? since we work with emower, we don't have to worry about planning for a third kid. you can still play golf... sometimes. take control of your financial future to empower what's next. your record label is taking off. but so is your sound engineer.

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welcome back to "power lunch. regional banks among the biggest gainers today. comerica, zi zon ii don't knows keycorp up commercial real estate, small banks hold four times more to real estate loans than the larger peers rising rates, declining occupancy and maybe the economy contributing to the concerns here to discuss the challenges

and opportunities in commercial real estate, peter merrily gann. they have everything from industrial to office and multifamily. welcome to "power lunch." >> thank you thanks for having me today. >> is this a case of, you know office being under pressure or do you think that there are cracks everywhere? >> there is some cracks showing, i would say, but it really is more office than anything else that's what's struggling the most industrial is doing fine big box starting to slow down and industrial, which we own a lot of is doing better than ever multifamily flattening out, hospitality doing well, but office is tough. >> yeah. office is so tough that people are trying to figure out if the loans are going to be made full, made whole, and so far we're seeing people just sending back the keys and whether it's banks or reits or even life insurance companies, they're going to be -- how do you think it's

going to trickle through their businesses >> so, you know, office is facing a number of headwinds with the less demand first of all and depends on what kind of office r&d space or, you know, pharmaceutical space, things like that, still good demand for it if it's just conventional vanilla box, putting people into a space for office, there's not that much demand for that because of the work from home dynamic and also the economy is slowing down so that's really tough you have to spend a lot of money for those spaces as they start to empty out the risk is pretty significant and then, of course, it requires significant amounts of capital to put your tenants in place and then as interest rates have gone up, it's really a capital crunch for those landlords. they're making those decision also they walk away or whether they make that investment to hold on to their assets. it really depends on the market and depends on the situation with the individual tenants and how highly leveraged they are.

it's not kind of a one size fits all problem. so you're not seeing the huge wave yet because a lot of borrowers are fighting it off. eventually if this continues as it currently is, it's happening. what's going to trigger it not so much the banks and insurance companies because those are balance sheet lenders but commercial backed security lenders that don't have flex kts. >> you do business across the u.s. and europe as pwell i can imagine there are certain cities doing just fine, whether it's miami, or austin, or tampa or orlando, or charlotte but then there are major cities where the urban coerce are not the same kinds of places they used to be san francisco, los angeles, chicago, even manhattan. how are you factoring that in and is that worririsome to you as major employers consider

maybe leaving or downsizing in those urban quarters where quality of life issues are so stark? >> it's a huge problem boston is not the same as prepandemic no question about it the downtown is not as vibrant there's not as much going on that doesn't mean demand has evaporated there are people coming back and some occupancy going on. traffic has picked up, things like that, but, yeah, i mean it's tough out there and those major centers that you talked about, san francisco in particular, anything that's heavily tech focused, is really going to face headwinds and that's without discussing a.i. and how that's going to impact the job market and tech sector. >> 80% not office in your portfolio for now. thanks for joining us. we appreciate it. >> thank you. >> peter merrigan with taurus. to you clean start taking a look at one company producing iron within an electric furnace.

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>> steel considered the most important construction material used in everything from skyscrapers to cars to cargo ships. it is anything but green lowering its carbon footprint will require something of an iron fist. steel is an integral part of the clean energy transition. it's used in electric vehicles, wind turbines and new infrastructure, but making steel is a dirty process 70% of the steel produced globally is made in blast furnaces fueled by coal which results in two tons of carbon die i don'ds for every ton prod. boston metal and a start-up electra are attempting toing may steel green. >> what our team has developed is a process that uses renewable electricity and lower grade iron ores to potentially eliminate 90% of co2 emissions used in

steel making. >> reporter: electra producing iron, the main component of steel at lower temperatures, 60 degrees celsius, as opposed to the usual 1600 degrees and it's using emission free renewable electricity to heat the ores instead of coal. >> from cost perspective our goal is to be equal or cheaper than the incumbent steel making process. >> reporter: electra partnering with new corps for decarbonizing steel, as opposed to coal fired furnaces and uses recycled materials for the most part but still needs the pure iron for some products which electra will provide. >> you could in essence have high quality iron that would have zero embodied carbon and that would be a huge win not only for newcorps but the industrial and the world. >> in addition to nucor it's backed by s 2 g, bhp, amazon's

climate pledge fund, funding $85 million. the biggest challenge now is how to scale this technology to such a massive industry the faster that can happen, the cleaner steel will become globally tyler? >> so even though the company is using an electric furnace the electricity has to come from somewhere. is it clean or not >> they are using renewable energy but that has a problem because when you use solar the sun is not always out. but they say using this he lower temperature functionality, they can actually start and stop the process for when the solar is available. >> all right diana olick, thanks. they can figure steel out that would be a big deal. after the break the media industry hitting an inflection point. the streaming wars from red hot to cold. where do the smaller miaed players fit in that's today's working lunch look! what's up my trade dogs? you should be listening to me.

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benefits. payroll. compliance. trinet. people matter. streaming video is a tough market where ad-based business models are under pressure these days google's youtube dominating long form video, tiktok shaking up the short form today john fortt brings us up close with a ceo working to carve out a niche catering to

businesses. >> the ceo of venmo the video company that came public two years ago when it spun out of iac. the reception has been shaky since post-pandemic they have shifted away from smaller company. they're used to feeling like an underdog from the public schools of flint, michigan to the boarding school phillips for high school and felt she was in over her head until one history essay sophomore year and a teacher who encouraged her. >> i like remember the actual picture the page with comment and the first time i had not wildly failed at this school, and he had said i can do it. he seen something in me. i did it i think that was my turning point. it's amazing how quickly from there how i embraced it and went from being a really poor student to i think doing quite well by the time i graduated. >> things can turn quickly when you find your groove and that's

what trying to do at ven plo now, trying to compete with youtube to specializing in paid tools for businesses and enterprises to deliver their message. that part of the business is around 20% of revenue, grew gr in q1. she's cutting elsewhere in the company to fuel that growth. >> we want that experience to be designed to help businesses create content, manage content, distribute content we want that content to be most engaging and we want you to be as successful as you can we made a lot of choices we're consolidating different product experiences. we're unifying our ux and deinvesting in other parts of the business for us the north star is we want to see adoption of video, videos being created, videos being share and used we want to see that grow and

scale really nicely and we want to do it while being more effi efficient. >> i didn't talk ai this time, but she told me they're making the content creation that much faster. >> when i use them, i have to click on a button and somebody sent me a video that's password protected but privately shared with me. >> unlike youtube which is facing a mass market, they're not making money off ads they're making money off the creators who want to make video, track how it's doing the enterprise portion, larger businesses, is what's going for them while overall revenue is coming down. they're trying to reign in expenses and push more towards serving the business customer.

>> very difficult task. >> yeah. >> it's not just like -- it's not like tiktok with random people making videos and posting them. >> no. >> they're not trying to compete there. >> no. they love the cnbcs, the proctor and gambles. those people making videos to use that as their base to crafting that video and trying to track over it does over time. >> how big a company is it they went public when? >> two years >> does she work for barry dillard? >> yeah. >> that's a tough boss you learn from barry, you learn well >> they've had head count cuts, about 11%. there's been shrinking going on. it's a smaller company. >> see if she can pull it off. >> graduate of the college of dillard. that's a very high --

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welcome back, everybody. 4:30 left in the show. clock is ticking first up, the biden administration is considering creating a governmental t

alternative to turbo tax it would be a free online tax filing, specifically people with straightforward returns. intuit and h&r block both down >> i see nothing wrong with this if you have a simple return, short form return, you just have w-2 income, why not be able to go on a website and file a return and it's done. >> maybe everybody can do that and we can get rid of the whole thing. bitcoin higher today as well as for the year. if you look at the chart, it's been stuck in the mud. paul jones, a uva grad, from my class no less -- that's a long time ago weighing in on crypto. >> bitcoin has a problem because in the united states you have the regulatory apparatus against it it's yesterday's news. if inflation is truly done a

bit, if that story has been played, you have to wonder -- we were buying gold and bitcoin for the inflation hedges that game may be over. >> basically saying one of the use cases or one of the philosophical underpinnings is maybe losing its mojo. >> bitcoin is back up around 27,000 it hit 30. can it go back above that level? maybe because of the bank crisis or the fed rate cuts, will it hold its purchasing power? any classroom tales to share >> no. he was -- he's been an incredibly generous benefactor for the university of virginia he was in a fraternity populated by guys from -- i believe he comes from memphis >> with that accent. a shake-up at shake shack,

engaged capital is planning to run a proxy fight. the shares cut in half from their 2021 ties. do you think they can double profitability in two years >> shake it up who knows? it's such a crowded area shake shack, premium price my son loves it. he goes there. i don't really go there. >> is it giving chipotle a run >> chipotle is the clear winner. >> i haven't been there in a couple years as well as mcdonald's is doing, burger king, this is the time to make a move. >> mcdonald's has got expensive. consumer debt hitting a fresh new high at just over 17 trillion that came even though mortgage

maturations are at a low increase up to 6.5% for credit cards and auto loans 6.9%. americans are carrying more debt. >> credit cards did not go down in q1. suggests some duress everyone is binging on snacks. $180 billion industry. >> i wonder to the snack use is a reflection in part of how expensive other kinds of foods have become. >> full meals. >> come to our newsroom and see the snack bin. >> maybe we'll show that tomorrow we should do that from this table. a big interview tomorrow on cnbc elon musk live from austin this follows tesla's annual

meeting. musk-see tv. >> i can't wait for that david is going to do the interview as long as elon stays there. we'll be speaking to the ceo of bentley they have five ev models on the way in 2030. >> i'm getting one for you >> "power lunch." >> "closing bell" starts now welcome to "closing bell." i'm scott wapner right here at the new york stock exchange. we begin with a decidely di directionless market here is your score card with 60 minutes to go in regulation. banks and semis good day the nasdaq is the outperformer today. energy, industrials and materials higher the cyclical trade showing signs of life. our talk of the tape, despite alth