jason? >> i like crn, heading into earnings next week we'll see. >> might hear a little something about ai we'll see. all right, everybody see you on "closing bell." that does it for us. "the exchange" begins right now. ♪ ♪ thank you, scott welcome to "the exchange," everybody. i'm kelly evans. here's what's ahead. a blow to america's aaa status as debt ceiling talks go on, and while stocks aren't moving much on the news, treasuries are. and the timing could be problematic. we'll look at why, how it factors into the next fed decision, and where to ride out the risks in the market right now. nvidia powering the nasdaq higher today shares soaring on blockbuster earnings and guidance. the market cap now nearing $1 trillion but are the charts flashing a

sell signal? katie stockton is here with what she's seeing just a few days ago, people were calling musk the next rupert murdoch today, they're calling twitter not ready for primetime. but first, let's dwget to the markets. >> you have two different markets out there. it's tech, chips, communication services, telecom, that sort of thing, and then everything else out there. for that reason, you're seeing some of the more value oriented stocks and sectors indicated by the dow industrials, down one half of 1%, or 165 points. the s&p 500 solidly above 4100 now, 4142, the last trade. up 2/3 of 1% again, it's been an upday for the s&p. at the highs, we were up 40 points at the lows, still up 14 nvidia has been a big reason behind that. the nasdaq composite, up over 1.5%, and nvidia and the tech trade has been a huge, powerful

engine for that move we'll see if that sticks around. one other place we're keeping a close eye on is in the energy markets, specifically with crude prices, falling by 3.5%, off the worst levels of the session so far. partly because of at least a demand issue maybe there's an economic problem ahead, maybe the debt ceiling is causing worries also partly because russian officials tossed cold water on the idea that opec might engage in production cuts on june 4th at the meeting, putting pressure on oil prices. so watch that. down 3.5%. $71.69 andthe retaretail trade. earnings better than expected for best buy it reaffirmed its full-year forecast, which indicates some declining sales of some of those consumer electronics products. ralph lauren, better than expected results, driven by the

reopening of china and dollar tree, down about 11% right now. earnings didn't come to expectations also, cuts full-year profit forecast they're talking about shrinkage, theft and that sort of thing kell, back to you. >> thank you, dom. we have team coverage on every angle of the debt ceiling showdown joining me now are my guests steve leaseman is tracking the fallout on feds futures. kayla, let's start with you. >> kelly, negotiators were working late into the evening and moving closer to a compromise position as the deadline nears there's now just a $70 billion gap between their two positions, but the two sides expected to agree to a topline spending number first, and let lawmakers

hammer out the program details through the traditional budget process. the white house, the treasury department, and the u.s. office of management and budget all radio silent on the talk, which, as of yesterday, would have required the administration to offer more savings to win over republicans. and democrats, well, they're not happy. >> republicans are driving us down a dangerous road of default or have presented the american people with another unacceptable choice, which is devastating cuts to children, devastating cuts to medicaid, devastating cuts to nutrition, devastating cuts to education. >> but they're now racing against the clock. to pass any agreement by june 1st, a deal would need to be reached by tomorrow at latest. house speaker kevin mccarthy still promising members three whole days to read the deal before voting. the house could then vote on tuesday, the senate on

wednesday, may 31st. then it would be up to congress after that to figure out where specific cuts would come from before another deadline, this one on october 1st, to fund the government kelly? >> so in some ways the deadline is tomorrow. kayla, thank you the debt ceiling fight is leaving one of the three big credit ratings to put the country's rating on negative watch. leslie pick we arer with the de. this is a detail we couldn't miss >> reporter: we've been waiting to see what the big three would do the ratings agency putting the u.s. operating watch negative, telling lawmakers to raise the debt limit by the deadline, ensure debt securities are paid on time and in full, or risk a rating downgrade fitch says they believe there will be a rez solution but says-

>> but some believe the ratings agencies should be doing more in the meantime we spoke a short while ago with morris cramer, who was part of that group that downgraded the u.s. rating while at s&p in 2011 he told us that the ratings agencies this time around are acting "quite late and quite timidly. >> if you have a political system that gambles this way with the credit worthiness of the nation and the full faith and credit of the country, it has no business in aaa land, because what we're seeing now evolving i think is at least as severe as it was in 2011 in terms of the difficulty of finding a way out. and this is just not what you would expect such a dysfunctional system of a country with the highest level of credit worthiness

>> the news seems to have had a muted impact on the stock market today. volatility in prior episodes crept up closer to the deadline and beyond that deadline date. however, treasury markets responded much earlier to the debt ceiling risks this time around than they have in prior debt ceiling episodes, kelly >> that's surprising you're right, they have, because we could potentially be a little ways off let's talk about the impact on government bonds and the banks steve liesman is here to explain. you think this is coming together at the worst possible time >> exactly while it's not clear what is causing bond yields to rise, it's a good bet, at least part of what is happening is concern about a possible u.s. default. yields on one month, three-month and six-month bills have surged since early may. we've had market toss maybe think the fed is not done yet. but more of it is brinksmanship.

yields have also risen for two and ten-year bonds the u.s. could experience another downgrade. all of this comes, of course, right after regional banks have been through a tough time because yeah, the price of bonds on their books have fallen, creating liquidity concerns. so the debt ceiling hijinks not helping the banking problem. since tuesday, s&p is off 1.1% regional bank stocks down 2.4% now, the fed could declare that there will be no change in the treatment of government issued debt for risk or other purposes of the fed that's correct help. but higher yields could pressure banks if it's a loss of faith in the credit worthiness of the united states. how many black check marks do you get? and you can keep going and add the full faith and credit. >> your reits point especially let's dive a little more into -- we'll just call it everything that's been going on joining me now, david zerbos,

peter bookbar, and here in studio with steve and i is dan greenhouse or is it with steve and me >> with steve and i. >> wouldn't it be with me? >> with us >> now that i have to teach my kids, i realize i have no idea and the heavy hitters show the degree of seriousness which we're trying to treat all this so dave, let me turn to you first. it's not that the aaa loss is that relevant per se, but we seem to be heading without a plan with the deadline here. >> i disagree somewhat with the position of fitch as i did with s&p at the time. i think what you're seeing is the political sausage being made, the proverbial sausage being made i don't know why a rating agency would be surprised that the debt ceiling would engender debate with political parties on the hill and why you would downgrade

the u.s. as a result of that >> should they downgrade the treasuries because a higher risk of default they're just responding to the market >> sure, except listen, forget the one-month and three-month, a lot of that is a function of people positioning them sels to just not simply be in the bill that might have a delayed payment. >> you're a banker, dan, and the husband and wife come in and they disagree, whether they will take or bay pay back the loan. >> and there's a higher rate being charged. that 7% yield you're seeing in two and three-week bill also go back to where they should be when this gets solved. my point earlier about the ratings agency, we have no idea how this is going to resolve itself everyone assumes, based on nothing, that they will reach an agreement in the next couple of days, a bill will be passed into

law. when that happens, we will quickly forget about the political debate that was -- that occurred in front of that the end result is exactly what the political process should result in, swwhich is budget. >> dave, there's two reactions, one, stocks will rally once we reach a deal but the other one, which is provocative and interesting, stocks might sell off in a way that if we had to do austerity in 20 11, or if there's more to come, if it's setting us up for a gdp head wind that will be significant, and this is the beginning of pricing that in i just want to throw that out there, dave. >> kelly, i just want to make sure you put one other market lens on this, which is the dollar index today is up almost a half a percent so the dollar is strengthening everybody i talked to this year

is pretty dollar negative. so this is hurting people. we were four figures higher, and we're pushing big numbers, as well so i kind of differ a lot with what everybody is saying here. i think the stock market's kind of giving you a good read. the currency market is telling you the dollar is more than fine and the bond market is telling you maybe the economy data has been a little better, and the story line of fed cuts being imminent or a recession being around the corner is maybe not as clear as everybody thought. the whole complex seemed to have a recession to start in the next two, three weeks so i think this debt ceiling thing, i haven't written about it once, and i don't plan to write about it but i think it's being overplayed in a pretty low vol environment overall. >> you can take a victory lap on

that you are one of the people that said svb was not going to be that big of a deal but there were a lot of people shaking their hands. let me bring you in, peter tell us how you're analyzing this >> well, firstly, when a rating on a country that has their own printing press is symbolic it's not reflecting the u.s.' ability to pay back bond holders. >> maybe just a willingness. >> yeah, this will get done, and we'll forget about the political process going into it. but it is symbolic in the sense that there is an institution out there that is raising and questioning this -- the rising debt and deficits we're now experiencing for 30 years, debts and deficits, i guess they didn't matter but i think that maybe now they matter and that the rise in interest rates is not necessarily happening for good reason, because it's also happening when

we're reach thing mismatch between all of the supply that's about to flood us over the next couple of months when the debt ceiling does get raised, and who is going to buy it all i know it's a question of who is going to buy it all, but you have some big buy thaers are not in the game any more, like the fed, foreign central banks, like the banks themselves and there's a lot of paper to absorb so you can get this lift in interest rates just for that one reason until we find a clearinghouse. to david's comment about the stock market, if you look at nvidia and ai stocks, you can say the economy is booming but if you look at everything else, you can say we're in a recession. with respect to the dollar, the dollar has been following interest rates in the u.s., and it's been happening since june 2021, when powell said we're thinking about tapering qe so i don't look at the dollar rally as an expression of the world's confidence in the u.s.

it's just mimicking the two-year yield. >> let me throw out a stat the fewest stocks being the s&p 500 since march of 2000. >> i can't tell if these two guys on the screen are robert duvall on the beach in vietnam when the bombs are falling around him and he's saying he loves the smell of napalm in the afternoon. or kevin bacon in "animal house" with people saying "everything is fine, everything is fine. i guess i was with you guys before now i just don't know that they get the deal done. it looks like it's going to be a little bit more, i don't know what you want to say, rough. and i think that you have to start to think about the idea that they do not get a deal done, and we start to go through all the gyrations that will be necessary. am i wrong about that? are you robert duvall or kevin bacon? >> if anything, i'm ben affleck.

but what i would say, when you look back at 20 11, which is the only representative example we have, all five of us were active market participants at the time, but you rarely see market dislocations until about a week before what was then the x date, which is the very beginning of august the market didn't really sell you have until towards the end >> does that tell us we're not towards the end, that they think we're going to go to june 15th, is that why? >> listen, one data point is not a data set but i think since it is the only thing we have to go by, and do think that the debate today has many echoes then where everyone was saying a deal will get done, and a deal did get one, and everyone forgets the big selloff in the market was the downgrade. we have to take a step back and say okay, the x date is probably

june 7th, maybe june 8th, and god willing, maybe we can get to the 18th it's very difficult to look at markets and say markets aren't pressuring people >> dave, let me ask you, i haven't heard -- i know when you turn more bearish on stocks a little while ago, but what is the trade for people from here on out i am still concerned about the back row >> we're not jumping up and down about stocks we certainly weren't last year we've been focussing in on secure we think that's a much safer place to take a little more risk this year than last year and you have single b models in structure credit, and you have all the equity guys that get to take the bullets in front of

you. so that's our story. i'm sticking to that everybody keeps saying that a deal gets done in august, and it's all okay. but everybody is like, there's some sort of weird, i don't know -- markets are very forward looking. it's all political posturing yes, we may go through a little bit more but i just don't think the market is going to train itself. steve in particular, on some sort of major structural event or major permanent event here, this is an important story if the market was losing confidence in the united states, they would not be strengthening the dollar so that's just a fact. it's the most liquid market in macro that there is so you can't turn around and talk about rates being the driver if whice had a problem and peope didn't believe in the commitment

of the u.s. government to pay back debts, we would have a much bigger problem the dollar is taking everybody out that is long >> i will say it's not great for the s&p. but steve, quick last word as we're trying to assess the odds of june, just talk to me -- >> it's always the case what's happening in the fwbond market s affecting the fed funds future we have this huge rise, if you want to put up that board on the bills that are out there right now, they're up by whatever the heck they are. >> normally when they're up, people think debt rates will go up >> this is now showing almost certainly a rate hike by july.

dan? >> quick last word >> that's right. you can't take any information from the short-term gold market right now. >> but they may be in the dollar now, because it's a flight to safety >> safety from a u.s. that is losing its credit rating >> it's bizarro world. >> thank you all so much today, really appreciate it coming up, the debt ceiling worries are not standing in the way of nvidia today. we'll put it all in perspective after the break and check stocks with katie plus, out with earnings after the bell we have the numbers and narratives to know ahead of those reports. and let's get a quick look at the markets where the dow remains down 105 points, even with the s&p up 30 today, and the nasdaq up nearly 2%. the ten-year yield is almost

$3.80 today. "the exchange" is back after this what if buildings could tell you how they could be more efficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create.

welcome back to "the exchange." nvidia should change its name to nvid ai. shares rocketing 27% on a blowout quarter. earnings, 19% above estimate revenues, 10% above expectations and as for guidance, nvidia sees second quarter revenues up $11 billion. the estimate was just a little over $7 billion. that's more than 50% above estimates. nvidia's best revenue quarter

ever prior to apparently what's coming was $8.3 billion. so wis this just the beginning o a wave of ai related tech outperformance that's the subject of today's tech check hi, diedra >> i'm going to say why some are saying nvidia is not overvalued. it is expensive, more expensive on a price-to-earnings multiple than any other chip maker on mega cap but it's cheaper than it was yesterday. now, the expected earnings part of the equation went way up last night, beyond anyone's expectations even with today's surge in share price, that doesn't account for the explosive demand in ai that nvidia is expecting. so one could actually look at the current action of the valuation dip. last night, nvidia's calendar

year '24 price-to-earnings ratio was 20 times today it's 40 times. today, it is a more reasonable 33 times now, this stock chart says it all. the stock price is rising, but the price-to-earnings ratio plunged thanks to what one analyst calls a guidance for the ages that is really the metric that many analysts look at to judge whether stock is expensive or not, relative to other stocks it's expensive relative to earnings ratio last night, it is not now, as for lateral ai and nvidia plays, it might have been tongue in cheek, but real estate and car dealers in santa clara, that is where the headquarters of nvidia is if this generative ai boom is bigger than internet, many millionaires and billionaires are going to be minted we saw what happened in the bay

area santa clara, excuse me you can see an explosion of property value and purchase there is from all of the beneficiaries of nvidia. >> that is a really interesting point. diedra watching every angle. thank you. so does nvidia have more run to room or is it time to trim? should i even utter those words? let's look at the charts and we'll bring in katie stockton. great to have you here, katie. i am loving this when you look at this chart, what do you see? >> it is an all-time high, and that typically is a good long-term development. so i wouldn't want to minimize the bullishness of what happened to nvidia. they're probably quite happy, it probably doesn't feel cheaper today than yesterday but the targeted objective that we can arrive at from this kind of breakout, we use something called a measured move projection it assumes the trajectory of the

existing upturn will maintain itself nvidia is above current levels so that's all we have really to gauge a potential upside from a technical perspective, given that's no additional resistance on the chart but as we saw this gap up this morning, we did see the indicators that are a countertrend indicator, on the weekly and daily bart charting so nvidia might be overdone, at least in the short term. >> oh, overdone, at least in the short term let me understand, when you break out to new highs, it's a generally bullish thing. but this also makes sense in the very near term, maybe it has to consolidate a little bit >> that's right. what we don't want to see is

nvidia come back into that gap quickly. so today's low, which is right around $366 as it stands, todd's low will define the upper boundary of the gap left on the daily chart of nvidia. we want to see nvidia hold up for several days above that gap in order to preserve the breakout and make it clear that the gap is not indeed exhaustive, which sometimes they are after big up-moves >> that is so helpful and explains the importance of watching the price action for the next couple of sessions. does it have any bearing on the market overall the s&p 500, does this change the charts in a dramatic sense or i'm just curious what your latest thinking was. >> it hasn't helped the s&p 500 much the s&p is testing resistance around 4155, which is a key level in our work, and we want to see it close above that tomorrow

but the nasdaq 100 is benefiting big-time from nvidia's rally and has the potential to confirm a breakout it looks more likely with this move, and that was require a close above 13,600 tomorrow. so that's looking increasingly likely what it could mean is that the mega caps are going to continue to kind of lead higher >> just incredible, with everything else going on katie, thank you so much katie stockton from fair lead. still ahead, florida governor ron desantis announcing his presidential campaign on twitter spaces but not everything went as planned. we'll look at the launch strategy and what it means for twitter's media hopes. "the exchange" is back after this ♪ ♪ every day, businesses everywhere are asking. is it possible?

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and smooths dry skin. with 7 moisturizers and 3 vitamins, you can pay more but you can't get more. gold bond. champion your skin. ♪ ♪ welcome back to "the exchange," everybody i'm tyler mathsen with your cnbc news update at this hour the founder of the oath keepers extremist group was sentenced to 18 years in prison for orchestrating a plot that culminated in his followers attacking the capitol on january 6th, 2021 he's the first person to be sentenced for seditious conspiracy, the longest in the cases so far a car collided with the

gates of downing street in central london where the prime minister's home and offices are located. that set off a rapid security response that resulted in the arrest of a man for dangerous driving. there norths, happily, of any injury and ukrainian president volodymyr zelenskyy made a surprise appearance at the john hopkins commencement to speak to the graduating class, saying that time is the most valuable resource kelly, back to you >> tyler, thanks coming up, three key names did nvidia set the bar too high? and we saw elle beauty post a jump in sales. don't go anywhe.er

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benefits. payroll. compliance. trinet. people matter. welcome back, everyone today, we have the action, the story, and the trade on marvell, costco and marvell technology is higher today the street is watching for any similar indication about ai,

tail winds, shares are up by 5%. morgan stanley watching its business, saying prospects are compelling from here and wells fargo says there's little visibility into the timing of the china recovery so we turn to the managing director of oppenheimier is marvell technology the next nvidia >> these are all tail winds. we have been on the show since january why we think that the bear cycle ended last year we maintain that view. the relative strength of the industry, in terms of the broadness, marvell technology has been the latest to break above its 200-day average for the first time in over a year. that indicates that the stock's

prior down trend has reserved. it's still considered in its space at $49 that would be the break out level. but five pullbacks, today's gap is now supported around $46. >> so it's not exactly expensive either let's move to costco now, one of the best performing staples, up 11% this year. it was a winner the face of rising inflation, and it could benefit as inflation cools by pushing price cuts the last membership price hike was in 2017, so the recent drop in oil prices could take out a chunk of sales what do you do with costco >> yeah, this is one where we see more mixed evidence. the stock has been in a narrowing range, making higher lows and lower highs for the better part of the last year that's fine when the market is

in a bear market and trading poorly as it was last year but you saw the stock's relative strength break in december, while the rest of the market was beginning to strengthen. so as it stands right here, right now, we simply see more attractive opportunities elsewhere while costco is below resistance at $510 >> better opportunity elsewhere. okay, let's turn to ulta shares down 7% since the last report in march. ulta expects the beauty category trimming healthy to moderate growth rate. spending softening, and they're watching increasing competition, as well as the expansion plays of 25 to 30 new stores this year is this a buy for you? >> this is a buy this is where we see opportunity.

the stock's down about 13% from its high there's two reasons based on our work while we think this weakness is buyable. first off, the stock is coming off a new cycle high in a mixed market so we see that as an indication of relative strength and this pullback has brought the stock into the bullish slope of it 2s00-day average, which we define to buy long-term strength so that support level, that 200 day, $470. below there would make us question our view. but we see a pullback to be bought in ulta >> final question, it's just about the broader market we just spoke with katie stockton and we're asking everybody about this, the rally that continues in the face of everything how do you feel about the s&p

500? >> you know, it's stuck between a bull and a bear. more likely to break higher. i see a market from a period of broad-based selling last year. selling has gotten more concentrated we're seeing pockets of the market that have started to work, and thinking about some of these large-cap growth stocks. that's not where the issue is. the issue is elsewhere, what's holding it back. on a market holdback, it's the areas of relative weakness you can buy relative strength on pullback you buy nvidia on pullback so if you're worried about market breadth, i would be lookling else why in the market. generally speaking, growth does pull the rest of the market higher >> ari, thanks appreciate your time today still ahead, it's been a tough time to be a reit, as fed rate cuts take a big hike, and office challenges remain but there are some reits in the green, like this one, up 11%

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welcome back well tower, it's one of the reits posting gains this year. it focuses on housing for seniors. diana is here with a look at some of the other winners and losers in today's real estate sector >> kelly, you have rising interest rates, sky-high office vacancies and other concerns in the broader real estate market so big shock, the sector continues lagging in the s&p 500. this year, it's down over 4% when you take a look at the worst individual performers, there aren't many surprises. office land lord, boston properties is the worst performer, down almost 30% since the start of the year, still hovering near its lowest levels since 2009 health peak and alexandria are

in the negative this year. on the other hand, there are some key outperformers well tower, which you just saw, is a top gainer. and we have seen notable gains in two of the residential rental players, invitation homes up over 10% that company focuses on single family home rentals. on the apartment side, avolon bay is hanging on to gains, as well >> i don't know, i heard this from a few different people, could those gains become losses? >> yeah, we have more yunls under construction coming into the market this year than we have in over 20 years. so there's concern about that, because a lot of it is what they call a-level stuff, that is the top tier apartments, the more expensive ones where that's not where all the demand is, we need more affordable housing.

for single family rentals, which these reits are about, there is still strong demabldznd there diana, thanks. the presidential kickoff fo next and throughout may, cnbc is celebrating asian american and pacific islander heritage. >> growing up in an asian household, my parents instilled values of hardship, believing in myself, and giving back to community. and i have chartered my career based on those values. i have taken up opportunities where historically there has been a very low representation of women i have sought out mentors that value diversity, that value who i am, what i bring to the table. so i think mentorship, giving

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welcome back to the exchange florida governor desantis announcing his 2024 presidential cam in an event on twitter spaces. take a listen. >> i'm running for president of the united states to lead our great american comeback. look, we know our country's going in the wrong direction we see it with our eyes and we feel it in our bones. >> but as we know now the announcement wasn't all smooth sailing. twitter spaces struggled with technical issues it raises the question if the digital town hall is really primetime ready. joining us to discuss is sarah fagen and james stewart.

welcome to both of you jim, i was ready for murdoch to musk to say this is the moment. >> it will go down as one of greatest fiascos in campaign history, it speaks to the technical mess that twitter has become al musk is very peculiar given the trump base musk is a symbol of tesla. typical trump voters, they don't drive teslas, they don't like people who drive teslas. it's an odd brand extension. >> sara, good to see you again i understand why a campaign might want -- look, there was tons of media attention in the 24 to 48 hours ahead of this announcement because it grabbed so many people's attention this is a brand-new platform

a weaker moment there's a piece of land to grab there. could this have been this moment if it had gone off better? >> a chance to get around the quote/unquote media filter to go directly people. look, with all the glitches one number estimated 300,000 people saw these comments or heard these comments and, you know, that's more than you would get in any type of an outfit i do think stretching, you know, one self in doing these events makes a ton of sense, i don't think doing it as your announcement was probably in hindsight the best way to execute your launch. it's the wave of the future. we'll see more of these kind of conversations on lots more platforms. it was a bad day for twitter, no doubt. >> jim, i have to imagine twitter is hustling now to get the technology, netflix also had

this problem where they tried to do the live season finale, so these are growing pains, it feels like the platforms will get there and maybe they'll have tucker carlson's new show and podcast libraries will go over there. if those ambitions are serious do you think this is a stumble on what will become the platform of the future like cable news was that for the past 30 years or so in. >> i agree, this is a temporary glitch they'll solve the technical problems eventually. again, twitter, will twitter be the first to do it i don't know given the cost cuts, there's no question that social media platforms are going to develop the confidence for big audiences. i'm not sure what were the ratings for the announcement the traditional media platforms for this campaign cycle are still going to be, are going to

dominant in terms of money over the social media platforms >> so maybe this was a glimpse, sara, into what 2028 or beyond could look like, what would your advice be if more candidates go this route or at least get the buzz of being the first on one of these new platforms i think people were expecting desantis to feel a little bit more relaxed and unscripted. he stuck to message, which is fine, but does the candidacy actually feed to change a little bit as well as the platform potentially shifts? >> i think running a moderate campaign is harder than ever there's just so much fragmentation of media and the way people consume content is now in lots of places. consumers are consuming more hours but on more places more opportunities to reach them but it's harder. you have to be able to adjust to that

i do think from the desantis campaign's perspective, he's really good in a q and a session, so that was well-thought through, when you're running a presidential campaign when something like this happen it has a tendency to throw your candidate and it doesn't typically go great after so part of this is assessing risk, and this was a pretty risky move looking back on it. >> jim, i'd ask where does this leave social media relative to kind of establishment media, do we keep the crown for another presidential cycle or not? >> well, social media is hugely important, i mean apart from these kind of town hall situations that we just saw yesterday, the role of social media has become huge, very, very important i thing that desantis has considered, what else you want to say about donald trump he's a master of social media and he used twitter to amazing

effectiveness in the last campaign and he'll back i assume on twitter among other things, trump can be quite funny on social media. in a mean way but it's extremely effective. desantis is going to up his game on the social media front. >> or walk away from it, jim, altogether >> i don't know how you walk away from it too many people tweet and re-tweet or get on facebook and communicate. so much information and opinion moves that way i don't think you can afford to ignore it. >> quickly sara. >> part of this was getting under trump's skin trump was the undisputed twitter king, he got kicked off. started his own social media platform this was a way for the desantis campaign to really tweak donald trump right out of the gate at the very format that trump had

lost so much stature so to speak. that was thoughtful politically, because you know, part of what ron desantis is has to do is get under trump's skin and create moments that causes his base to leave him. >> thank you both today. we really appreciate it. thanks for joining us here on the exchange today. we're out of time. tyler has a very busy "power lunch. i'll see you on the other desi of this break. ♪ no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across multiple systems globally, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. . ..to make quick decisions? check. aaaand check. that's the hybrid cloud solution ibm and a global bank created. what will you create?

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welcome to "power lunch," everybody. coming up all about a.i.nvidia soaring after its results driving any beneficiary along with it. we'll ask if a.i. is getting

maybe a little