it's up for debate >> they're like all of us as investors. i wish i had been in that. i'm going to chase it now and hope for the best. deirdre, thanks very much. we appreciate it deirdre bosa reporting for tech check. that does it for the exchange. thanks for your time don't go anywhere. a very busy "power lunch" starts right now. indeed it does, kelly. kelly will be over to join me in a moment welcome, everybody i'm tyler mathisen coming up, there new bull market stocks continue to creep higher little by little especially technology shares there's something about this tech driven rally that's different from previous times. could it be what finally slows the rally down plus, from shorts or short stop to shirts the yankees legend derek jeter getting in the clothing game we'll talk to him about that new venture. also about baseball. does he like the pitch timer, the clock? is it going to attract younger

fans, speeding up the game we look forward to that interview. first, a check on the markets. let's take a look. shares of tesla up for the 12th straight session its longest winning streak on record a gain of 35% over that time the stock has doubled so far this year. and a pharma deal to tell you about, novartis buying shinook therapeutics for $3.5 billion. the company has a leading candidate to treat a rare kidney disease, and carnival cruise lines getting an upgrade at b of a from a buy to -- to buy from neutral, excuse me price target going to $20 from $11. and jpmorgan also upgrading carnival and upping the price target to $16. carnival shares popping today. and is this the kind of a broadening out that the bulls say could power the next leg of this bull market up 20% from the lows and history says we should keep going. let's bring in mike santoli for

more on that >> hello, tyler. that's the simmplicit definition of a new bull market, but other things have also fallen into place. the s&p 500 got above its 200-day average. that's a longer term trend line and that trend does continue to point higher history does not say it's a fool-proof indicator 90% of the time one year out the market is higher still, although you have big false signals in 2001 and 2008, though those did not necessarily pass all those technical tests. i think some parts of this are also textbook and this the stuff we have talked about along the way a really almost textbook comprehensive washout october low and then a big rally through a midterm election that's the most bullish year of the four-year cycle, is midterm election years january flush of new money took last year's laggards much higher, and you got these very good breadth of momentum signals. all these things did fall into place, but it doesn't feel exactly like it's in gear

because of those breadth issues. an underachieving bull market both in the magnitude of gains overall in eight months but also the number of stocks that have participated it hasn't been as narrow as the last couple months but it has left something to be desired also on the credit side, you have seen things be okay, but they have not improved very much i think it's more of an in between area i would say essentially if october was the low, first, it's down more than 15% from where we have now, so you can say fine, october is the low, it doesn't mean you're going straight up from here, but also, it might mean forward returns are not as wonderful as they typically are coming out of a bear market if we did not see that kind of comprehensive flush, and still big questions about the fed and the economy. >> mike, what would you say is the most important thing either from a trading point of view or macro to watch for the next development? >> from a trading point of view, i'm watching the next pullback the market is a little overbrought. you want to see it broaden out that could mean the s&p comes

down while most stocks do okay the volatility index cracked below its bear market lower end of its range that's something that does tend to happen when you are kind of transitioning into a broader uptrend, but on the macro side, obviously i think you have to get more comfort that the market can handle a higher for longer fed if that's what we're going to get, and that the economy is not just kind of slowly sagging into a formal recession, and maybe it can hang out. i'm onboard with the idea the market has now priced in a little more likelihood of a soft landing which we may or may not get. >> thank you very much let's move on now. as nasdaq continues to lead the market higher, which names might be ready to cool off and which ones really haven't joined the rally just yet. kristina partsinevelos looking at the overbought and the oversold kristina >> if you want to be different in all our retail investors watching, you might consider avoiding tesla as it's the most

overbought stek on wall street right now. the technical metric which is often talked about as rsi, measured the speed and magnitude of recent price moves. if it's over 70, it's considered overbought, if it's below 30, it's oversold. more importantly, it can indicate a security may be ready for a reversal in price. tesla, for example, is well over 90 right now that stock is up over 25% in the last three weeks or so and is on par right now to have a 12-day up streak. meta is at 74 rsi, signaling the stock is more crowded than apple, amazon, netflix, even nvidia is lower on the scale despite its 165% run-up year to date all about tech on the nasdaq you have non-tech crowded names as well including fox corporation, utility firm constellation energy, end phase, and even match, the operator of match.com. on the other end of the spectrum, dollar tree hasn't been a favorite for a while.

its rsi is 24. it's stock has been down starbucks also an oversold territory. speaking of oversold, regional banks saw their rsi as low as 4 just in march, but as we use the kre etf as a good barometer, that's about 20% in the last month as investors look for some rotation away from tech and all of that concentration risk >> thank you very much now, while we have all noticed that big tech has been leading in a big way so far this year, our next guest has run the numbers and says in fact this is the most concentrated market ever with us now, sony toni sacconagi good to see you. when the market gets this concentrated and when ten stocks are driving the performance the way the big ten have since the lows in october, what tends to happen next to the market and to those ten stocks >> good afternoon, tyler

thank you for having me on the show yes, this is the most concentrated market ever, about 90% of the returns since the beginning of the year have been driven by ten stocks in the s&p 500, and the contribution of those stocks, those ten stocks, have generated 9.5 points of return this year so far. we haven't seen anything like that before. so we went back and we looked at the last 45 years or so since 1980 we divided each timeframe into half-year periods since we're half a year so far and then we looked at, okay, what happens in concentrated markets? what happens after the six-month period where you have ten stocks really driving the market? somewhat comfortingly, we found that the market does okay. it kind of performs in line with history over the following six and 12 months. those ten stocks tend to modestly underperform, however,

so collectively, in periods of concentrated market performance, what we found over the following six months and 12 month, those ten stocks have generally underperformed by about 400 basis points >> what does the market do in that time? underperforming the market by 400 or 4 points, 4 percentage points of return, as you look at these amazing contributors this year, nvidia up 164%, apple up 40%, meta up 120%. what does the market typically do in that ensuing six months? >> the market is usually up, but not as much. on average over the last 45 years over any six-month period, the market is up about 6%. in those six-month periods following concentrated markets it's up a little less than that, about 5%, 5.5% encou encouragingly, we haven't seen markets collapse and we haven't even seen the large stocks collapse after very concentrated

returns. so to some degree that is encouraging. now, i would underscore, we have never seen a market like this. this is the highest level of contribution from ten stocks we have ever seen >> i was going to ask, what are the historical anticedents to this i can think of dotcom, but that wasn't mega caps or the nifty 50, but that was a different period of time what would you say is the historical analogy >> there isn't really. they're not defined by unique time periods and they have occurred in different times of history. oftentimes you have the stocks up a little bit and ten stocks are driving all of it. what's really unique here is we have a market that's up a lot, and all the big stocks are up. if we look at the ten biggest stocks in the s&p, seven are up more than 35% year to date so it's typically environments where we have big stocks that are having big moves

and many of these stocks underperformed last year so we are having some catchup and mean regression. that's defined this period and to some degree, that's what's happened in the past as well >> the only thing that might make me concerned is in the dotcom period, a lot of these were starts-ups with no money, but they weren't necessarily the biggest market caps. you almost don't want the biggest market caps to be swept up in some speculative mania nvidia's numbers are real, but when trillion-dollar market caps start rising like this, do you ever worry about how much they could fall and the impact that would have >> sure, there's certainly risks. these ten stocks that have powered the market this year, they're trading at 32 times earnings on average and 6 1/2 times sales. the market is trading at 18 times earnings and 2.2 times sales. these are tech companies tech companies typically trade at a premium, but the multiples for these stocks have gone up a

lot, about 50% this year almost all of the gains has been driven by multiple,pansion, not earnings going up. so clearly, kelly, any time you have that kind of market expansion, multiple expansion, excuse me, there is some risk that a triggering event, you know, whether it be macro, a deeper economic falloff than most anticipate, or whether it be an exogenous shock geopolitically, there's much more risk because the stocks powering the market are expensive stocks >> let's talk a little bit about tesla which is one of those ten mighty stocks that have been contributing so much i think it's on a 12-day win streak or something, i believe i'm correct on that. what do you think of that company's shares right here at today's price? would you buy them >> i would not buy them, tyler i do worry that the next year or so will be difficult fundamentally for tesla in the sense that they're trying to grow very rapidly. you know, 30 to 40% this year, they want to grow 50% next year.

and right now, they really only have two high volume cars, the model 3 and model y, and they have run into some saturation limits on how many of those cars they can sell. and that's why they have been discounting. and they want to keep growing for another year and a half until new models come out, you know, largely at the end of 2025, that will be meaningful. in the meanwhile, trying to grow 30% and then 50% on top of one another without new models will be very challenging. we have seen price discounting i feel reasonably comfortable we're going to see more discounting through the remainder of this year and into next year. that's going to put pressure on earnings and cash flow and so, i do worry about tesla over the next 12 to 15 months. and elon musk has conceded on earnings calls, like, you know, the next year is going to be pretty tough for us. that's really the underlying reason why >> very interesting take on tesla, and a very insightful

history lesson toni sacconaghi, always good to see you. >> thanks for having me. coming up, the fed's next rate move just 48 hours away we'll be back in d.c. for a special two-hour fed show. up next, will the fed or the economy be what derails this market rally or something else entirely as we head to break, a power check. catalan finally reporting results after three delays even though the numbers weren't good, it's jumped up on the downside, nasdaq, the trading company itself, down 11% after paying $10.5 billion to buy a software firm. it's nasdaq's biggest deal ever and investors sending the stock sharply lower. "power lunch" is back after this lley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse!

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. welcome back to "power lunch. while we have seen this bull rally, the economy is still hanging over the mark. bank of america ceo brian moynihan telling us his thoughts on the current state of the economy. take a listen. >> the economy is slowing down they're guiding it down. will it be a soft landing? our economists think it will be a recession, but a mild recession. and unemployment moved up in the mid-4s, but that used to be full employment, honestly, so it's not quite the disruptive thing will that have an impact on all the economy and will it ultimately have an impact on financial services of course it does, but the reality is that it's really going to come down to people are employed and people are spending a little more.

companies will have revenue, and they'll be okay. >> so as the market seems to be pricing in a skip, on hiking rates at this week's meeting, our next guest is expecting a deepens profits recession and tighter liquidity. he's focusing on high quality parts of the market. joining us is dan suzuki not going into venture capital, dan? >> no, kelly i think this is not the time to put the pedal to the metal on risk a cheap market, that's one thing, but clearly, the aspects of opposites on all of those three fronts, so i think this is the time in markets where you don't need to be under your desk in a fetal position, but you do need to be cautious here >> how do you wake up every day and look at nvidia and look at tesla and look at these mega caps and not go, why not just sit there and collect the money and not have to hear angst from clients, if you are? >> well, that's human

psychology people want to chase the thing that's gone up, but if you stay focused on the fundamentals history shows that's a bad idea. momentum works until it doesn't. so i think the only way to continue to sort of compound outperformance in the long term is to stick to the underlying fundamentals and the underlying fundamentals here, unfortunately, a profit cycle that is weakening, liquidity that is tightening and a market trading at 19 times earnings with big parts trading basically at 25 to 30 times. that begs some risk, at least with regards to the overall market i think if you want to dig underneath the surfaceand avoi those areas of froth, there's tons of opportunities out there, but it comes down to your time horizon. >> let's get to some of those. we heard toni sacconaghi say during these periods where there's high market concentration in the ensuing six month, those stocks that were part of that concentration tend to underperform the overall market which kinds of stocks will overperform the market over the next six months? those that haven't taken part so

far? >> well, tyler, i think you just answered it right there. i think either way, the economy goes, those stocks are probably not going to be the leadership now, i think really, the economy can go two directions from here. it can get worse or it can get better in the scenario where it gets worst, i think that's where the companies with less economic sensitivity, that trade at much cheaper valuations are going to hold up a lot better than the handful of stocks that are driving performance today. on the other side where things get better, you have seen in the last couple weeks if there's optimism around growth, there are tons of stocks trading at basically close to single digit multiples that are going to see their earnings accelerate much faster than these expensive parts of the market. there's going to be plenty of growth in that scenario. >> let me ask you to get a little more specific under scenario number one where things get a little worse, you want what kinds of shares? what sectors or types in terms

of large cap versus small cap? and in that scenario where things might get a little better, you seem to be saying there's still growth areas of the market that are not these overplayed ones. >> sure, so tyler, in the scenario that things get worse, you want the companies that are going to have those resilient earning streams, the more resilient revenue stream classically, from a sector perspective, that's health care, staples, ukilties. you're still going to get sick, feed your family, heat your home, but also you have to look beyond that from an asset class perspective, treasuries look attractive here. having a little gold in the portfolio, there's a lot of ways to get defense in the portfolio, but then in the scenario, everything small caps, value, you know, cyclical stocks are incredibly cheap and out of favor here >> dan, thanks appreciate it. no one knows greatness wins

better than five-time world series champion derek jeter. that's why he named his new athletic wear company after that motto. we'll speak with the yankees legend live coming up. plus, rising risks the stretch of middle america known as tornado alley getting bigger because of climate change the scramble to adjust before disaster strikes again we'll discuss that when "power lunch" returns

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we've been the brand leader for over 75 years. when i finally could hear for the first time, i could hear everything. unlock our best deal of the year during our 75th anniversary sale. call 1-800-miracle today. . global warming is having a profound effect on extreme weather including tornadoes that are happening much more frequently you probably sensed it sometimes in places that have rarely seen them before. that has huge implications for residents, business owners in the path of the storms diana olick explains in her continuing series on the rising risks from climate change.

>> reporter: when a powerful f-4 tornado plowed through rolling fork, mississippi, in march, residents were largely unprepared this area hadn't seen a tornado in over half a century >> it's pretty clear that things are happening, which means as a city, as a community, as a homeowner, that folk need to be more serious minded about being prepared >> reporter: the u.s. saw six times more billion-dollar severe storms in the past decade than in the preevious two decades. those are the storms that produce tornadoes. so far this year, tornadoes have taken at least 58 lives across ten stalths surpazzing the annual average much of that is because the season is starting earlier and tornado alley is expanding due to a warmer climate that makes storms ripe for rotation >> northeast texas, eastern oklahoma, the arkansas river valley, the mid-south, these

areas are expected to see a near doubling of storms that produce tornadoes. >> reporter: the difference between tornadoes coming through kansas and mississippi is simple density. both states have nearly the exact same populations, but mississippi is roughly half the size of kansas >> there's more things, more people, more of us and more of our possessions in the mid-south. you combine that with an extreme socioeconomic vulnerability, that is increased poverty rates and a lack of sheltering and poor in many cases substandard housing. the recipe is for disaster koosz some of these areas. >> the majority of residents in rolling fork had neither homeowners nor renters insurance. precisely why the widening of tornado alley is fast becoming a new folk frs insurers. >> if we continue on the trend we're going, that means the economic losses are going to become in the hundreds of billions of dollars in a calendar quarter we need to make sure we have an infrastructure, we have a

capital mechanism, that we have a connective community mechanism to be able to respond to these events >> but it's all happening, he says, at a time when insurance dollars are diminishing. >> so insurance capital becomes a precious finite commodity. prices go up, coverage changes coverage options begin to get tighter. >> and global reinsurer capital declined by 17% or $115 billion during the first nine months of last year because of so many climate disasters. as a result, reinsurers are raising prices, limiting coverage, and even exiting some markets in order to improve returns. we have already seen major insurers like state farm and all-state exiting california duz to rising wildfire risks climate and insurance are now increasingly at odds >> i still remember one of the first to get vocal about it because of the impact. let's get to contessa brewer now. >> the biden administration has

stopped taking mobile asylum appointments at a texas border crossing humanitarian groups warn groups across from laredo, texas, were extorting migrants on the mexican side of the border, making them miss their hearings unless they paid up. u.s. customs and border protection did not comment to the associated press on whether that was the reason it stopped taking appointments there. a british committee is finalizing its report into boris johnson's party gate scandal its results should be shared with the public some time this week johnson is facing sanctions for misleading parliament about gatherings in government buildings that breached covid-19 pandemic lockdown rules. the former british prime minister stepped down as a lawmaker friday. >> and reddit experienced outages earlier today after thousands of communities in the online forum went dark to protest a policy change to charge third party apps for access to its data reddit says the blackout caused stability issues on its site kelly. >> apparently others have gone

this way, but reddit has seen more of a protest. thanks still ahead, derek jeter is getting in the game, the sports wear game, that is we'll diskcuss his clothing line and a whole lot more "power lunch" is back in two minutes. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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welcome back to "power lunch. we're about to talk to derek jeter about his new clothing company, which sells direct to consumer, but several more established brands are moving away from that model and going back to the whole wholesale model. courtney reagan is here. we can't take the wind out of his sails. this is derek jeter. >> i hope we don't disappoint everybody. as you might understand, every brand wants to own the consumer experience and the data. after years of focus on the direct to consumer model, more brands are realizing the value of wholesale for brand discovery and often a lower cost of customer acquisition so nike exited around half of its retail relationships between 2017 and 2021. now it's coming back to macy's and dsw, and the news sent shares of dsw's parent soaring

last week. levi continues its direct to consumer push, but its wholesale business grew 25% last year. pvh is deepening and the elf business grew 75% last year. it's expanding what it sells in target, walmart, and cvs, and l.l. bean moved into wholesale in 2020. it's expanding into more retailers telling me it diversified its geographic reach. meantime, even fast growing direct to consumer companies that relied heavily on social media marketing can see that model doesn't often work as the only way to sell look at allbirds, it moved into direct after struggling mightily as a public company. >> a change is afoot maybe if you're derek jeter, your name alone gets you through, you know, but the marketing, yeah, perhaps >> but marketing is really key for some of these brands

brand discovery is really key when you're first starting out if you're in a retailer and they have space and a consumer is walking in for something else and they see your brand,then they discover it >> what about the brand i'm aware of mostly via online called vuori i think they're in stores, they may even have stores now >> they're starting into retail partnerships >> they are principally and very successfully an online seller. >> i think that's what happens with the hip new brands and they use social media marketing as well once apple changed some of those privacy -- some of its privacy policies and the data, it's getting a little harder for some of those brands to really go after target and hold on to those consumers. >> apple killed the small start-up business. >> in some ways there was a big impact >> you're absolutely right >> thank you very much you're the warmup act for derek jeter and his friend now to a company using the direct to consumer model why trying to disrupt the sports amerril market, it's called

greatness wins it was launched last year by untucket's founder, with an assist by derek jeter, wayne gretzky, misty copeland. it offers men's and boys athletic wear with a women's line to come this fall here to discuss, derek jeter as well as a cofounder of greatness wins, chris rick abono welcome to both of you i'm thinking a hockey player, a baseball player, and ballet dancer walk into a bar, but this is no joke chris. this is a legitimate performance oriented athletic apparel company. the question is, what is it that makes your products materially, pun intended, different from a shirt or a pair of shorts or a hoodie that i could buy from a big company that has a four-letter name that begins with n >> thanks for having me.

i think there's a few reasons. over the pandemic, i had a little extra time and was thinking of another area i could possibly disrupt the one thing that stuck out to me was the quality of athletic apparel. then you had on the other side, the athleisure brands. they fit great, very high quality product, but they weren't designed with performance in mind. i saw a gap in the industry and thought, we need to create a high quality athletic apparel brand. one that not only performs great with upper end fabrics but one that looks great, fits great, lasts, doesn't pill, washes well so to me, this is kind of a niche in the market that wasn't there that we're solving >> so you would say, i'm taking it here, chris, and i have some of your untuckit products. they're very good, love the fit, the look, the whole business you would say that lululemon does not produce a quality performance oriented garment for yoga people and workout? or am i taking it too far?

>> they make a great product i don't know if it's designed first with performance in mind i think it's designed first with look in mind and then to perform. for us, it's all about performance. our fabrics are tested and the first thing we're thinking about is how is this going to perform when running or lifting or working out. at the same time, we know that people want this modern fit. they want something that fits consistently over and over again. and they want something that lasts. so i just think it's a little different for us is that performance is first, and then quality and performance is first, and second is how do you look >> derek, you have grown up wearing other company' brands. i can remember seeing you in the swoosh and other products. how would you describe these as different, number one, as you experience them and wear them, and number two, how involved have you become in literally helping with the design and the specifications and so on and so forth? and i promise you we'll talk baseball in a minute >> first of all, i want to say

thank you to courtney for trying to burst our bubble before we even came on >> we'll get her back. >> one of the keys are when you have a new company or a start-up because we're still a start-up, we have the ability to adjust on the run. so i'm sure there will be some adjustments along the way. you're right i had great relationships with athletic brands throughout my career, with multiple athletic brands throughout my career. i think any time you have that type of experience, you always think of ways you could do things in your mind a little better and as chris says, we're focusing on performance, quality of fit, sustainability, comfort. but look, i don't have a bad thing to say about any of the brands that i have been involved with or been associated with i think at the same time, i have been able to learn so when you say my level of involvement, look, i'm involved from the creative aspect, the marketing aspect i met chris probably i would say getting close to about two years

ago when he was telling me about his idea and he wanted me to be involved i said look, if i'm going to be involved, i'm going to bring the knowledge i have in the space we all know, how much chris has in the space, and we'll see if we can create the next great athletic brand and we're pretty excited with what we have been able to accomplisheven though we are a start-up company here. >> derek, i want to sneak in a quick one that is sports and investing if you don't mind. we have seen the huge popularity of these investing in sports as a portfolio opportunity, a lot of private equity and other things, fenway i think is a prominent example, but the performance of the teams isn't actually that great. do you think this is something more investors should get involved with, or do you think we should kind of pull back from this idea and maybe go back to the traditional way of doing sports ownership and access? >> i think people are always going to invest in sports. you know, i think there's one thing that always year in and year out people enjoy watching sports because it's the one thing you have to enjoy live

in this day and age with all of the phones and how information is transferred from person to person, you have to watch it live otherwise you miss it i think investing in sports is still something that is a positive i obviously am coming from being an investor in a team down here in miami with the marlins organization so i don't think that's going to change anytime soon. >> you have to watch it live or you miss it. that sounds like a yogi-ism, i think. you're on the right path >> i just did part of yogi's documentary that came out. >> i saw you in it i have to tell you, it was a great film i can't recommend it, it's one of the sweetest films you'll see this year. really lovely. let's talk about baseball, derek, if you don't mind, and chris, i know you understand i want to probe derek a little bit. there have been some changes in the way the game is played at the pro level. the pitch clock, the taking away of the shift all by way of trying to speed up the game, get more action into it what do you think so far

>> i think, tyler, you look at it every sport has made changes throughout the years there's been rule changes in most sports. i think baseball has sort of lagged in that aspect for many years. ultimately, and you have to listen to the consumer, and the consumer in baseball is your fans and you talk about the -- i don't want to say the younger generation because then it makes us, not just me, it makes us seem like we're getting up there in age, but i thing the younger generation, they don't necessarily want to sit there for 3 1/2, 4 hours in their seat watching a game. they want things to happen, instant gratification, they want things to happen quickly i'm in favor of some of the rule changes. i was on the competition committee when i was a part of the ownership group in miami so i'm in favor of it. i think it's gotten a positive reaction from the fan base, and you know, it's starting to show because the games have sped up, and i think the fans love it >> they sure have. i used to tune in to watch you and the yankees and i would tune in at a quarter to 10:00, and it

would be in the seventh inning now the game is over >> it is, and look, i have four kids under 6, so i can't stay up that late myself >> another person i'm going to set up a play date with, by the way. derek jeter, two quick questions. one is pretty loaded, but you have any problem with the saudi arabia -- if saudi arabia or one of its investment partners were to buy an mlb team, is that a problem for you? >> that's way above my pay grade. that's a conversation you can have with the commissioner i'm sure you can get him on the show >> i understand wanting to defer that one next one is maybe even harder. should the yankees send volpy back to the minors to get his swing back >> i'm going to tell you something. baseball is a game of failure. and i don't care how good you are, i don't care if it's your first year or 20th year, you'll go through times where you struggle usually you're not as good as you look when things are great, but you're not as bad as you look when you struggle i think he's making an adjustment

in all fairness to him, i haven't had a chance to watch too many games down here in miami, but i'm sure everyone speaks highly not only because of how he performs on the field, but who he is as a person. i wouldn't give up on him yet. >> derek jeter, thank you very much chris, thank you and let me add, chris, you are royalty in my neck of the woods. donbas co, all the rest of it, people talk -- you know, i don't have to tell you so congratulations on all your success and i hope this venture, maybe under armour and nike don't hope so, but we're rooting for you. >> thank you very much >> thank you both for your time today. let's go to break, shall we? first a quick mention. june is pride month and cnbc is celebrating all month long with stories of corporate leaders here's joey gonzalez, barry's boot camp founder and ceo. >> i grew up gay and latino in a very homogenous part of the united states. and i was definitely made fun

of, left out but what that did to me was it really fueled the fire from within and inspired me to want to grow up into an adult that built a community and a culture of inclusiveness at barry's. and i feel like that's living proof, a, that adversity can fuel greatness, and b, it's our will and our spirit that dictates how we handle the deck that we're dealt 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?

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welcome back, everybody. let's get a quick check on the market dow has cut its gains about in half, but it's still up 64 points s&p is still above 4300. in fact, actually picked up some steam. 4321 look at the nasdaq up 1.1% really just the dow where we have seen things moderate somewhat shares of truest are falling this afternoon the company's cfo said top line revenue is likely to fall 3% those comments were made at a morgan stanley conference. coming up. oracle, one of the best performers on the s&p ahead of earnings after the bell. we'll trade it and other movers

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lunch. oracle share up three times today as the company is set to release third quarter results. they're expected to be strong surrounding the cloud business and ai joining us with more is ava ados ava, what's your take on oracle? >> it is a buy it was our number one way when the market rewarded profits over growth i think it's still understood valued especially when it comes to generative ai they can use the huge market share to compete with other ai players. that gives them a growth space what's interesting about this company it's changing from a value play back to growth play after so many years.

i'm very excited about the company. i think there's still room to grow. >> let's see if there's as much enthusiasm for biogen. shares are up about 14% this year ava, what would you do with it >> i would buy, but for the short term not as much excitement here because i recognize that can be a short-term catalyst with the fda news the stock might do great in the next couple months, but for the long term, if you look at the last three to four years, they've been on a downward decline. their margins are shrinking. i wouldn't hold it for the long term i think it's going to be a short-term play. >> finally, ava, sentinel one, shares are up 8% morgan stanley upgrading the stock, but the stock is still

down nearly 30% for the month because of a miss in quarterly revenue. what do you think here >> it's a hold because it's dropped significantly in the last month it's priced okay, but i do like the category i like growth and i like speculative companies at the current market i think the current market is benefitting these type of companies. however, when it comes to competition, it has great competition with crowd strike, so i don't like the competition. i do not like their margins. they're the lowest in the category i would hold, but i'm not bullish on them. >> ava, thank you. appreciate it. >> thank you still ahead, hotel operators checking out of san francisco. and a legendary investor handing over the reins

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which offers flexible spending limits that adapt with his business. he used his card to furnish a new exam room, and everyone was happy. built for dr. petsworth business. built for your business. amex business. welcome back, everybody. little less than four minutes left in the show a lot more stories to get to twitter isn't paying its bills as we learned month after month. this time a report says they haven't played google and since november haven't paid rent on their offices. how can twitter get away with this

let's ask cnbc legal analyst what's your take on this >> it's one thing for a business to renegotiate large contracts with a provider, but it's another thing to say we're not going to adhere to our current contracts and breach them. one thing is renegotiation, the other is breach of contract. it could be that you have two titans of industry, each afraid to sue each other like two gun slingers. >> what's the outcome? does this go to court or what? >> as is often the case, sometimes when a large company decides i'm not paying the bills the other company might say, well, it may be cheaper for us to negotiate refusing to adhere to the contract is not negotiating in good foaith it's not good business bargaining strategy. yeah, it's an option to go to court. businesses make a decision to

see what it would cost to go to court and get a verdict versus renegotiate. >> danny, fascinating. thank you. moving on, george soros handing over control of his $25 billion empire to his son alex, the fund that is speaking to "the wall street journal" a 37-year-old said he was self-conscious of his family's wealth, but is more political than his father. he wants to keep backing left-leaning politicians, more political than george soros who has become a major target of people on the right. >> there's a little bit of a succession battle over the year. it's a great piece this makes it clear that choosing alex was going in a specific direction alex makes no bones about the fact he's going to make it more political. >> saying, bring it on. former prime minister of

italy died over the weekend. he'll faced a lot of scandal and made some questionable comments. incredibly successful businessman and media mogul. >> he was in some ways the leader of the italian populous movement he can be likened to the murdoch family in his acquisition or building of media assets he can be likened to donald trump in the way he behaved and sometimes maybe misbehaved >> you can say the founder of an era. more and more hotel owners writing off san francisco while los angeles and new york are nearly back to 2019 levels of occupancy. not san francisco. still lagging far behind crime and other quality of life issues keeping tourist and conventions away park hotel walked away from two companies there. not the only company to give up on the city.

the problem is the falloff of the convention business. >> it's really sad. fedex after the bridge collapse on i-95 saying they're continue to monitor the situation. >> going to be months before it's back in use. >> a 45-mile detour to get around with it >> thanks for watching "power lunch. "closing bell" starts now. welcome to "closing bell." i'm scott wapner live from the new york stock exchange. we begin with the winning stream for stocks and it's more than just tech pulling the markets along. the dow on pace for its best month since november tomorrow the inflation report and wednesday the fed decision here's your score card with 60 minutes to go in regulation. discretionary and tech the leaders today. intel is the big winner out of the do