is the right one >> jenny >> another safe play to hide, williams company it's the premiere natural gas player one of the things is it trades high, but it doesn't affect their business >> i'll see you on "closing bell." "the exchange" is right now. welcome to "the exchange." i'm kelly evans. here's what is ahead the debt deal cheering a hurdle and heading for a vote in the house. that's a good thing says a guest, because a failure to get it done could have an impact on the market and the one area she's very bullish on right now plus, the next big ai movers could be in the train industry they see four names with the biggest potential impact the analyst behind that note is here to make that case and mortgage demand just fell to the lowest level in three

months so how is stock up 17% year-to-date the market, as we look to close out may. this is ahead of the debt deal that is expected later today the dow is down more than 300 points at the session low. the s&p is down 30 points. in the red for the month now, with today's declines, the s&p that is. the nasdaq, although it's down almost a percent, it's on track for a 5% gain. let's get to some of today's standouts. student loan payments are expected to resume as part of the debt deal. it's up about 24% this week alone. elsewhere, retailer ka capri don big today. it had a modest revenue and earnings, but guidance for q1 was shockingly bad the stock is down about 10%,

almost reminds me of what sacks said about luxury being in recession. the weakness in versace is consist enlt with that and advanced auto points tanking on more than 30% they had aiss and slashed their dividend almost entirely and by the way, this kind of problem comes after a double beat it had in february. some price cuts appear to be a cull pret. more on the stock later on stocks are falling on concerns about these global risks and joe biden and kevin mccarthy are still trying to round up support. and a surprise in job openings, renews strings a strong labor market will push the fed to hike rates in june. and consumer debt topped $17 trillion for the first time. and the fallout from svb continues.

brian reynolds saying this is the worst decline in bank deposits in at least 50 years. now, on top of those concerns, china last night just out with some surprisingly weak economic data factory activity contracting more than expected in may. hong kong is touching bear market territory tensions with the u.s. remain high.ccusing a chines fighter jet of making an aggressive move in the south china sea. against this backdrop, what should investors do? joining me now is elizabeth burton from goldman sachs. elizabeth, great to see you. let's start with knee jerk advice the stock is rallying because of it, do investors stick with that >> thanks for having me. i think one of our positions would be to maybe aggressively neutral here i think the outlook for stocks is still up in question.

we have a lot of risks that are coming forward to us although it looks like we'll get a deal on the debt ceiling if we don't, there could be ri risks on both sides of the reits question >> you make a really interesting point. in some way retail investors can be a lot more nimble in this environment. i see it all the time, people are trying to buy t-bills and everything like that do they have a leg up on institutional investors on penchant funds at this moment? >> to think about your own portfolio, you normally don't consult a board of folks or get feedback institutional investors have to go through a process some institutions haven't even invested in private equity yet it is a lot hardier, because they have asset allocation c

cons constraints. it's a lot easier for you or me to go out and buy a one-year bill it's much harder when you are tracking a benchmark or have less ability to be flexible. >> there's one area you're very bullish on, that a lot of people have building concerns, we could call them private credit it's almost such an umbrella it could be a catch-all as a place to look for opportunities, you think this is one where the returns justify the risk you're taking >> sure. if we were having this conversation in january, i think there was a debate whether or not you wanted to lock up capital and go with private credit or get a good return in the public market. now that we have seen some stresses, now is a better time to be bullish on credit. a lot of these sales, you are going back to some of the same companies.

also, as you know, when liquidity flows out of one space, it's often a really good time to get back in. not only is liquidity going to be challenged on the debt s.e.a.l.ing in the coming months, i mostly work with the largest institutional allocators, and they're way overnight private markets, so that's challenging so the u.s. is maybe $3.5 trillion of pensions, that could provide an opportunity for those that do are the liquidity. >> it's more of a buyer's market let me bring in steve whiting, chief investment strategist at citi global wealth management. good to see you. i wanted to ask you about some of the risks i think you just paired back your overweight on china what do you make of the data that continues to disappoint

>> look, i would bear in mind, we're still seeing distortions in the american economy. china is supposed to sort this out in six months. now, if chinese policy gets this right or not is still to be seen we're looking at a market that is trading at ten times earnings that's an economy that is producing actually zero headline inflation, with record high income employment. if you look at what a post -- an economy that is actually fallen into a hard landing looks like, those are economies that actually produce strongly one or two years later. we wish which could say the same thing for the u.s., but it's sitting on a lot of success. now, we have nine times more money in the u.s. equity market. in terms of diversifying risks, you won't find that in any other markets.

>> that tells you how negative sentiment has become it's had this bubble and it can't becomes a consumer led economy. i don't know, they seem -- the data seems to be moving in that direction. >> so, look, china has some japan risks from a policy perspective, from being a middle income economy you can't put all of your chips just on china. we diversified into a wider place with that money. brazil trades at seven times earnings everyone thinks its government is in a place that will harnl iit -- harm its economy >> i don't know, liz, whether you spent a lot of time looking at china or just glad the u.s. market is more dynamic, but if china is not contributing as much growth or inflation to the global economy, that will have

huge consequences. >> it will and this week, more than weeks in the past, is one of the questions i'm getting from investors. but it makes sense to -- it's never easy to make money, but it's easy to look at our home base and shop locally. i think that we need to get out there, don't buy the house on zillow travel abroad, see what you like out there, because it will get tougher and tougher. >> dollar index up again i always feel like why have double risk, both to the market you might be choosing and currency risk that either one of those could move against you >> the currency risk and the dollar risk issue is interesting. going back to the retail institutional play, we have seen on the retail side and the smaller allocator side, investors adding gold to their portfolios if if we think there might be

higher inflation for longer, adding gold to your portfolio, commodities portfolio, those moves make sense so still diversifying your portfolio, that is probably what you want to focus on right now >> thank you both. elizabeth, steve, appreciate your time today. if the momentum in stocks feels like deja vu, you're not imagining things my next guest says we're seeing an upside panic reminiscent of 2021 joining me now is chris murphy i guess it depends on your time frame, chris you can chase it for a little while and do well. >> i would say actually kind of in between so the easy, kind of swift move in the ai craze has kind of happened this might be the time that you would want to swap into options. so you take some of your

downside risk off the table to buying outright equities here, you swap into an option structure because you know what your max loss is let's say you're going to look at a cost spread in something like nvidia. you know what your max loss is you can position for upside, and you take advantage of the fact that there is that 2021 kind of feeling, you know, panic to the upside on those way upside calls that you actually sell as part of a call spread >> interesting so what would you broader point be how the stock market is likely to do in the next couple of months then >> you know, i would say it's certainly not going to be a straight line. we're already seeing that a little bit today but if you were to just look at the options market, and i already mentioned those way upside tails, there's certainly a desire for that extreme upside you have to point out, we're always looking at probabilities in the options, and we know, you

know, what we don't know but when you are looking at the bid to the upside, you might see, let's take for example nvidia today there was a buyer of 15,000 of the july 500, 5.50 cal spreads nvidia is spratrading around $5. this call spread buyer is not extremely shore nvidia is going above 500, they may think it's a 10% probability. so the options market is starting to price more tail risk to the upside in a lot of these ai related stocks. >> that's interesting. i take your point about nvidia over 500, those odds what about a tail risk to the downside, how would we gauge that because i think -- the s&p is the most shorted, you know, so

people seem to be piling onwit the idea of the fed crashing us into the wall here >> you know, we're not really seeing in the options market, we're not seeing as much of that downside tail fear i think when people see s&p moving higher, you know, they think that people are panicking. it could be that discretionary investors are finally moving into the stock market and they need protection. so in our seat, we're not seeing any near term fear we've been waiting for this recession to happen for a year now and it keeps getting pushed out. the most interesting trade we'll see there is in the tlt, looking for the end of the year rates to be lower probably because there is a recession >> right

there's been a lot of focus, "the wall street journal" had a piece on the idea of what sophisticated investors are doing. i guess do they sell volatility or pushing it to the downside as we clear that wall of worry. is that kind of setting us up for a springback move at some point, or does this make sense to you that the markets just continue to be placid and move in a range >> you know, i like the idea of -- i like the argument that we are looking to be a little more range bound for the end of the year if you think about it, we're at the top of this range, so the easy money in the ai trade has probably been maid those ctas that you mentioned, they're mostly full right now. but on the downside, you can look at the numbers today. the resilient economy of the u.s. continues to outperform, and there are statistics out there that discretionary investors are not fully in the market so i any there's a lot of

arguments for more range bound second half of the year for the broader market >> i like at chicago fed and some other data points and they seem more worrisome. chris, thank you for your time appreciate it. >> thank you coming up, the transports have set up the rally this year, but planes, trains, and trucks might be next. we'll talk about the impact that could have on the transport stocks ahead and advanced auto parts on track for its worth month ever and macy's hitting its lowest level in two years what would our trader do with these stocks we'll ask, coming up as we go to break, here is a look at the market where is the dow is down less than 200 points right now. ten-year yield below 3.65. back after this.

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are four names on that wall he says will see the biggest impact it's good to see you, robbie drumroll, please, if you want to start with the names of this overall idea freight can certainly use a catalyst this year >> thanks for having me, kelly the cycle is very important. this is an industry that can really benefit from technology over time, and you're seeing that with everything from autonomous trucks to block chain, and now ai. so i think the long-term direction of the industry will absolutely be transformed by technology options >> you say it will have the biggest impact on the three pls. explain what that means. >> that's a group of companies who are effectively brokers. they are truck brokers, they

don't own any assets, but they connect companies that want to hire their truck or a chip or a train to move their freight, with the owners of the trucks and trains themselves. when you look at this marketplace opportunity, something like ai that can really bring automation, really help drive efficiency, it can help drive end-to-end automation, it can improve the security and resilience of the transaction and lower costs. >> if i were them, i might choose my next earnings call to use that ai acronym. so expd and others you highlight. you think ups could be a leader there. this is all such a tough macro if the economy were firing and looking better, i bet people would be more likely to give them the benefit of the doubt.

but how do you see ai benefiting a company like ups >> look, that's true, and ups has number of capitalists, the union contract that they're negotiating right now, and other issues but over time, the parcel carriers have a lot of data. and whether it's the optimization of routes or how to handle packages across the country, or you just are getting a better customer service experience with more automation and giving you the ability to track and trade in a better way. we think, again, the parcels are a -- we fall between asset heavy and asset light where they do have a lot of data where ai can drive a lot of cost savings over time but in the meantime, there are a few macro challenges

>> sure, that leads right into trucking, where you think there could be some beneficiaries. but trucking seems to be going through its worst period in history, so how do you balance that >> we are construction on the freight cycle. we think that we could be getting to a point soon where it's a positive inflection in the trucking cycle even beyond that, again, that combination of the potential of autonomous trucks, again, net worth optimization, using tools like ai, we think trucking names can absolutely look to reduce costs and improve the efficiency and operation, using the technology >> i think you will be right, obviously, over time just a matter of can they kind of get it, helping them before

the macro gets much tougher or maybe we're already at a tough time ravi, thank you for your time today. still ahead, oil on pace for its worst month since november we'll talk about why and where it could go from here. those declines pushing the energy sector out of the hole. tech, meanwhile, up powering the nasdaq to a better than 5% gain this mth hexcng iback after this (vo) with their verizon private 5g network, associated british ports can now precisely orchestrate nearly 600,000 vehicles passing through their uk port every year. don't just connect your business. (dock worker) right on time. (vo) make it even smarter. we call this enterprise intelligence.

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welcome back to "the exchange." crude is on pace for its worth month this year, the worst since a year ago when it started to

crash back last june from the super high levels. every energy stock is down at least 7% in may. the worst ones include apa, devon, marathon, down about 14%. if we have one more space there, you would see exxon with its worth month since 2020 what gives i mean, this has been -- i wish it were better news. maybe it's great for the consumer, i don't know >> gasoline prices are down, oil prices down 40%. so that's good news. the question is why? we talk about china reopening. well, we have some weak chinese data the bear case, and then ask me about the bull case. a couple things here number one, still a lot of russian oil on the market, and they're selling it at a discount if you can buy russian oil, you buy oil from russia and resell yours, you get it cheaper. you have increased u.s. production we are back to nearly the top of the prepandemic levels

of course, that weak chinese data, you can throw in a stronger dollar, when a dollar goes up, it makes it more expensive. what about u.s. production right before the pandemic, we topped out at 13 million barrels a day. the pandemic hits, 9.7 million barrels. last month, 12.7 million so we are creeping back up to those prepandemic highs in terms of u.s. production, which is also, by the way, why natural gas had absolutely collapsed >> hold that thought for a second the embargo was breaken. steve liesman has some headlines. steve, what can you tell us? >> important remarks from phillip jefferson, nominated to be vice chair of the federal reserve. he's talking about skipping a

rate hike at a coming meeting because it would allow the committee to see more data decision to hold, however, he warns does not mean that the fed has reached a peak rate. so he is setting up what people call a hawkish pause the fed stops but reserves the right to come back and hike again. he says a year is just not long enough for the economy to feel the full effects of higher rate hikes. so he is concerned about the lagged effects of the 500 basis points the fed has raised. it could worsen the stress at the banks. he expects growth to slow this year you and a decline in savings inflation, he says, remains too high but expects tighter credit standards to impact the economy, though the impact sun certain. he's not expecting a recession, he says, but he's concerned if you raise rates too high, together with lower earnings, it

could test the ability of businesses to service their debt one of the things, weakness in commercial real elsestate will s pressure on lendors. the vice chair would be somebody who is typically call it a pulling guard for the chair. certainly you would not expect there could be much daylight in the outtook of policy between the chair and vice chair phil jefferson is the nominee, so we don't know if that's the case yet but the idea of keeping a meeting is something that could have inferred from comments that jay powell gave a week ago however, his committee sounded a lot more hawkish and talked more about a rate hike. so here we are, you have the chair and vice chair talking about the possibility of skipping a meeting

so there seems to be a split over the leadership. phil jefferson using the terms "skipping a meeting. and one other thing, kelly, going into this speech, the probability of a june rate hike was 68%. it's now 53% so that's come down. sorry, it's now 48%. it's moving as we speak here i don't know the that's also moving the short end of the bond market but certainly, the probability of a rate hike, and i'll tell you what's happened here, we have gone from a 525 to 522. so they're baking out much more 50/50 on that june rate hike >> steve, thank you. the dow is down 190. sometimes it's a little more of a delayed reaction this is what we were talking about. because this is a macro story to some extent. we don't have to belabor that point, but going back to the direction of crude, the fact that it crashed the way it is,

would give the skip camp, you know, breathing room let's call it >> it's so interesting this has been the most called for non-recession recession ever for a year now, recession, recession. the consumer has held up this goes to what steve was talking about. you want to make the bull case for oil? increasing u.s. demand 24 million barrels a day. the government just raising its estimate for u.s. demand so if the consumer is going to collapse, she or he is not using less oil oil, the death of oil have been greatly exaggerated. you had the opec meeting on sunday and also degrading russian oil infrastructure, they're selling a lot of oil oil facilities take a lot of money to upkeep. you wobnder if that will contine to degrade russian production over time. >> is crude overly sold and

sentiment has bottomed or something like we get a chinese data point that surprises to the upside >> the hardest part is china is cutting off access of data to their economy to the west. you wonder how oil traders, if they can't get all the information they want on the chinese economy, chinese air travel, gasoline demand, and don't count on opec. i don't think they're going to make another cut but you never know and they just invited the media yesterday in person. >> does it matter? so far, the emergency market has continued to sell any headlines and shrugged them off. >> you had the prince, head of the saudi energy ministry, say w a sort of veiled warning saudis may need x dollars to fund their ambitious goals

we'll see what happens on sunday number one, u.s. production and demand, most important, opec probably second. and chinese demand from what we know of it, probably third >> and does russia push ahead? a lot to ponder. thank you, brian tune in to "last call" tonight at 7:00 p.m. eastern let's get to tyler mathsen now. >> the german government is ordering russia to shut down four out of five consulates in the country as tensions grow over russia's invasion in ukraine. the move to limit the number of german officials in russia to 350. germany will close all of its consulates in russia except in st. petersburg and the embassy in moscow. the russian foreign ministry called the decision ill-considered, provocative and said it will not go "unanswered. utah republican representative chris stewart

announcing he will step down from congress because of his wife's health. republicans hold a thin majority in the house the u.s. department of transportation proposing a new rule that will require all new vehicles to have more effective version of an automatic braking that can stop vehicles at higher speeds and detect pedestrians and cyclists each at night kelly, back to you >> tyler, thank you. coming up, three names deep in the red, including one which just hit a 52-weeks high yesterday. that's next in earnings exchange lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. 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

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is we have the action, the story and the trade on advanced auto parts and macy's let's start with advanced auto parts. the stock down more than 30%, the lowest since march of 2020 negative comps, higher than expected costs, lower guidance and a massive dividend cut on the heels of a strong beat in their fourth quarter

matt, great to see you and i'll turn it over to you what do you do with advanced auto >> it's just so hard to go after a stock like this when you have that kind of negative news it's one thing when you have negative earnings, negative guidance, and then you slash the dividend you don't just cut it slightly, but majorly slash to the dividend this creates serious problems for the stock, and for the company overall. some of this stuff seems to be company specific we have seen some margin problems in that industry from some of the other auto retailers, but nothing like this so i worry about it. i'm also worried about the consumer overall we're starting to see or hear from a lot of different companies that they are worried about the consumer spending. we're seeing it in places like visa and mastercard with their stocks rolling over for the first time in a while. so the retailer is something i'm

worried about. but this is a stock you need to avoid until you have a better understanding of why they missed by such a wide margin. >> we're showing that, and visa is down 5% this month. so let's move on to something else that has been working c 3ai, up 250%, but giving back 10% of that today. last quarter, they hiked their guidance saying the business overall is the most active they have seen and seems to be accelerating so we're watching to see if that's true and how their path to profitability is progressing. all right. matt, c3.ai, what do you do with this stock >> the hard part about this, as you just mentioned, kelly, they preannounced just two weeks ago, are they going to do a repeat of

what we saw from nvidia where they knock it out of the park? it's hard to do that two weeks after you preannounce. and the stock suis up 60% since that preannouncement and we have seen until today a parabolic rise in the stock. even if you think it's going to 10,000 by the end of the year, no stock moves in a straight line again, like you mentioned, they haven't made money yet they readily admit that. so it's not something i want to be shorted here because of all the momentum with all these stocks the ticker is ai, so i'm sure they'll mention ai plenty of times in the conference call but you have to be careful you should be able to buy the stock at a cheaper price at some point. >> sort of on the sidelines, given what you said, let's see,

macy's is our last one today, because they're about to report, and they are down nearly 40% since the last earnings, sitting at a 52-week low we have some softening consumer spending, increased promotional activity could result in their forward looking guidance would you steer cheer of this stock as well? >> no, i think this could be an opportunity. you have to look, what's the situation? we talked and ai there, is that stock already priced in? with macy's, all this bad news that you just referred to is true, but the stock is cheap it's down 40%, trading at just over three times earnings. it has a dividend yield of almost 5%. and the dividend cover ratio is 15%. it's less than 15% so i'm concerned about the

consumer, but when they price in this type of thing, some of these consumers have been around for a long time. look what happened with the gap stores that stock saw a nice surprising rally. we could see a similar thing with macy's. >> we were jumping up and down when the home builder pes go 2 1/2 times. i can't imagine being that excited about it, but it's an interesting point, matt. thank you for joining us today appreciate it. >> thanks, kelly still ahead, the tech sector has seen some massive layoffs, but there's one group in particular that has been impacted we'll tell you who and the long-term fallout for the sector d e ony. that's next. good luck. 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?

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(vo) with their verizon private 5g network, associated british ports can now what will you create? precisely orchestrate nearly 600,000 vehicles passing through their uk port every year. don't just connect your business. (dock worker) right on time. (vo) make it even smarter. we call this enterprise intelligence. welcome back you just heard from phil jefferson. now it's patrick parker on the wire let's get to steve liesman for the details. steve? >> yeah, i think the headline, kelly, is "skip to my lou, my darling," because here is patrick harker saying i think we can skip a rate hike at the next meeting but cautions a skip is

not a pause. in other words, he's still concerned about labor driving up inflation. that's two fed officials talking about a skip in the last 15 minutes. i want to tell you what's happened to the probabilities. we went into both these comments at 70% of a rate hike. there's now a 70% probability of the fed standing pat it's still about an even chance now for july so unclear what they're trying to do here, kelly, what is important is set up what you might call a hawkish pause or a hawkish skip at this point, where they reserve the right to come back they are talking about potential hi skipping a rate hike at the june meeting >> some big moves in bond

yields steve, thank you very much steve liesman. dow still down about 172 amazon, google and ibm are among the top employers of h 16h1 visa workers this is surprising >> it is what's interesting, not only are microsoft, nvidia part of the $1 trillion club, and they're all led by immigrant ceos. two of which were on h1 visas at one point. while the top h1 3 policies, those same companies have laid off 85,000 workers in 2022, and early 2023 the minute a foreign worker on a visa loses their job, they have 60 days to find a new job or risk being separated from their

family it's disproportionately impacting the asian community with indians and chinese making up 50% or more making up the h1 visa holders >> it's very hard to get a job in the same skillset in india. >> immigration lawyers, advocates say they are working around the clock to differentiate these workers from other immigrant cases, touting their contributions to the tech industry there's an interesting a ing an that found the latest breakthroughs in ai are driven by foreign-foreign scientists. so if we want to keep our lead, they would argue keep them here. in the past, they have been very open about their experience about how really open the

gateway to not only their success, but them as ceos allowing them to employ many workers across the nation. >> i know there's been these issues with raising the cap but during the pandemic, just remind me where we stand on that. >> great point during the trump administration, there was a ban put in place on the number of workers allowed to enter the u.s. since then, that's been lifted now the issue is with the layoffs, many of these workers are in a tough position, because they only have 60 days to find a job. many say given the current climate, that hasn't been easy >> they must really feel under the gun. coming up, mortgage rates are back above 7%. rising rates respect necessarily a bad thing for the mortgage company. we'll hear directly from jay bray, next the only thing i regret about my life was hiring local talent. if i knew about upwork.

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mortgage rates have been on a roller coaster, back above 7% and put a big dent in demand >> and they are actually now just back below 7% and you can thank the debt limit as well as stronger economic news than expected for this crazy ride here is where we've been this month. average rate on 30 year fix started in the high 6% range and then dropped back until debt ceiling worries and higher than

expected gdp rating sent it up over 7%. and then with a debt deal in play now, it dropped back into the 6s yesterday and so no surprise the sharp drop last week caused mortgage demand to drop to a three month low. applications to buy a home down 3 brs down 3% for the week. and refi 7% for the week and off 45% from a year ago. and now i'm guessing you want to know where do we go from here. bring is the next major mover with the monthly jobs report if it is stronger than expected, it is entirely possible that mortgage rates could bounce back over 7% and then we'd be saying what you just said >> and all over again. diana, thank you while higher rates are taking a bite out of mortgage demand, they have brought a silver lining for my next guest shares of mr. cooper group are up 15% year to date. joining us is jay bray ceo

good to see you again. >> great to see you. >> and not to get -- no one wants to hear about mortgage services, but maybe they want to do what your is doing. explain that offset. >> we really have a balancinged business model servicing is our biggest business if loans are not paid off, if prepaid speeds are slow, then those assets stay on your books longer, they will be more valuable and it will generate more cash flow so our servicing business is doing fantastic which i think it is why it is leading to the success of the to being. >> someone was asking about the 30 year mortgage and how quickly if you pay twice a month versus monthly. and typically you only have the mortgage for seven years because that is how often people might move for instance and that has huge ramifications would you say that that kind of

average assumption is changing because the mortgage rate is so different from where it once was? >> absolutely. just think about it, today significant number of our customers have 3% mortsage ageme rates, 3.5%. and that will extend the life at least three, four, five years from the typical seven year average. so, yes, undoubtedly and that brings more value to that servicing asset so exactly what is going to happen and we're seeing it. >> so now it might be ten years and that is stimulating the economy because it means that the fed's balance sheet isn't draining as quickly. which now we're way far from mr. cooper group for your next couple of quarters, how do you anticipate business conditions and demand being like >> what we're really seeing in the servicing market, we're seeing so many assets come to market you are seeing a lot of

consolidation, large institutions that say they want to strength their mortgage footprint. so we think over the next three years you'll see 4.3 trillion in servicing actually trade i've been doing this for a long time and that is the most significant number that i've ever seen. so next couple quarters for us, i think that you will continue to see growth. we're trying to get to a 5 million customer level which i think that we will you will see consolidation and you will see us looking at portfolios >> if only you mention ai in your next call, just imagine i'm sure it plays a role artificial intelligence has been with us for some time and especially in the business of processing, there is a lot of machine learning or automation or whatever you want to call it that goes into it. >> takeit is a huge piece of ou business in our call center we're using ai to better deliver customer service. identify customer needs, what are they calling for, and then solve that problem for them in a

more self-service kind of friction-free manner and so it has become a big piece of our business and we're making a ton of investments in ai and machine learning and language models so you're right. >> is there any concern -- we've talked about how discrimination comes into play. how do you make sure all your standards apply to what the technology is doing? >> the technology is constantly learning and so -- and it is looking at what is the customer's real need and where are they really needing the most help. and directing it to that assistance so it is color blind if you will nothing going on there that will direct it to one customer or another. it is actually just handling that individual customer's issue. >> and others say will has h higher iq and can handle it even

better jay, thanks for your time today. >> thanks for having me. >> jay bray ceo of mr. cooper group. and tyler is getting ready for "power lunch." i'll join him on the other side of this break. i struggled with cpap every night. but now that i got the inspire implant, it's making me think of doing other things i've been putting off. like removing that tattoo of your first wife's name. inspire. learn more and view important safety information at inspiresleep.com.

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