i think you have a perfect storm that happened. morgan stanley was thrown in with all the other regionals it's not a regional. it's a wealth management business, 3% dividend yield. great management team. >> ibm >> i'll see you on "closing bell." "the exchange" is now. ♪ ♪ thank you, scott welcome to "the exchange." i'm kelly evans. here is what is ahead. inflation is recreding quickly. our guest says the fed is done hiking rates and our market analyst says we can avoid a recession, and there are three stocks it will be very good for. plus, ozempic may be grabbing weight loss headlines, but there is another drug that

could grab market share. the ceo of eli lilly joins us. and goldman cutting its oil price forecast as crude is rebounding today but even with oil prices where they are now, there are buying opportunities in the sector, and our expert will tell you where he thinks they are but first, let's get to our market expert, dom chu >> the markets are green, so the bullish run continues. to that point, you are seeing stocks at near session highs right now. the dow sup one half of 1% the s&p 500, moving even more solidly above that 4300 level. 4372 the last trade there, about three quarters of 1% again, for context, today's trading range has been all positive s a the highs, we were up 36 points at the lows, up 11 still, the nasdaq composite,

13,578, up almost a full percentage point that nasdaq trade, very much tech focused still and on those mega cap names, the ones worth $100 billion or more, one place to keep an eye on is probably the earnings headliner of the morning so far. that is oracle the big database soft care, computing software, cloud computing provider is up 1% right now, off session highs but still a record high for the stock. that stock is responding to better than expected results, quarterly earnings and revenues better than expected and revenue guidance better than expected a lot more customers going for that oracle cloud infrastructure product they have. so shares up, and mary ellison, the founder of the company, now worth about $147 billion per forring, making her the fourth richest person in the world. and the other tech one to watch for is a chip name we don't talk

about as much, but it's intel, up 2%, with reports that intel is working with possibly arm holdings on becoming an anchor investor in their upcoming ipo if those reports are true, it might put intel back on the map. so kelly, intel shares, dow component up nearly 2% back over to you >> i'll give it a muted excitement thank you very much. the fed's next decision on interest rates comes 25 hours from now are we still expecting a skip or pause for good steve liesman has the latest fed survey hi, steve. >> yeah, we have surprising results in this survey, showing our 33 respondents no rate hike now and no more this year is the expectation

63% say the fed won't hike 5.24% is a bit higher, because some see that july hike. here is how the rest of the year should shape up according to the forecasters. more than 80% see no change in september and in november. 71% forecast no change in december but 26% penciling in a rate cut. the chief investment officer writes -- >> credit tightening from the banks and decelerating housing inflation will keep the fed on hold, and that is one factor that could explain the difference in this survey and the markets. the concern about bank lending, 53% are reducing their forecast

because of those tighter credit standards. 47% have not but the average deduction was 0.3% that's a lot of gdp. many think the fed should still keep raising rates, saying, we are looking for a hawkish skip we believe the fed will take a break hiking rates in june, but will raise rates further in coming meetings. so some are asking if the fed knows it needs to hike in july, why doesn't it hike now? the answer is, the fed isn't sure what it should be doing, it wants to see more data before figuring out if it's none and done or maybe it's none and one. >> our next guest is i believe will say none and done he says the last one was in may. joining us is the former chief economist and professor at georgetown's school of business. great to see you

none and done, is that right >> i haven't heard that expression before, but i guess yes. i certainly don't think they will tell us that tomorrow i think they will pause tomorrow, and actually i think they will take up the end of your -- with one more psych. but i believe they will be on pause tomorrow, and the forecast is that the last hike was the last meeting back in may so i agree with the consensus that steve just presented, which was a little surprising to me, but i certainly don't think we're going to get confirmation of that from mr. powell tomorrow if anything, i think he will err on the side of more hawkish rhetoric, so as to keep this moving in line going forward >> although maybe it's fair to say you're a little more dovish than people realize, because you

think they could start cutting after jackson hole >> yes, i don't think they would cut before jackson hole, and that's been a long standing viewpoint, including when the marketplace was pricing in and easing this summer i think that jackson hole is when chair powell logically should declare that the fed is sufficiently restricting not just restrictive, but sufficiently restrictive, which will be the code for the next move is to ease. it could be in the second half of this year out in the fourth quarter, or it could be in the first quarter. i'm not religious about that, but i think it's necessary for the fed chair to declare that he's sufficiently restricting before the marketplace will this time start actively pricing in easing at a meeting not too far away >> and it's interesting, steve,

i'll turn to you, but we're talking about this on an outlook that paul, i don't think you're that bearish about the economy i don't hear you're saying we're going into recession, but just that this is the space that falling inflation might leave us steve, can you weigh in? >> let me be clear that mcculley is playing a math game with you. how do you get to sufficiently restrictive if you hold the rate where it is? and because inside mcculley's brain there, he has the inflation rate coming down so the real rate comes up, and that's how powell, without moving, gets to the place -- i know mcculley well, that's the game he's playing with you you can't get sufficiently restrictive if you stay where you are and inflation stays where it is. inside that must be this forecast that inflation is coming down.

i'll give you two words about the economy, which is that we have been waiting for gudeau on the recession. we start off with a tree with no leaves by the end of the play, we have a tree with leaves people were forecasting a recession in june, then september, and now november. i'm not saying it's not going to happen, but at some point it ends up being wrong because you get three throws at the bottle to make them fall at the arcade game so at some point, we get to this place if the fed is restrictive, if the banks don't tighten a lot here, it's possible this soft landing can happen and that's increasingly the view on the street. we had one guy in the survey, kelly, i'll just tell you, one

of the long standing members of the survey team saying he answered "don't know" more times than he's ever answered before, because that's how foggy the outlook is >> paul? >> i think "don't know" is a good answer sometimes, and the older you get, the more often we need to say that just based upon experience that stuff happens. with respect to the recession, i have never been in the recession camp it's been a tail risk for me my base case throughout this entire tightening cycle is that a soft landing is achievable but a soft landing requires that the fed not land the plane nose down as chicago fed president goulsby would say. what they are doing essentially tomorrow is pulling up the nose of the plane, and i think we will have a soft landing and

inflation will continue to come down as steve said in the context of an unchanged nominal fed policy rate that will lift the real rate. so i think the fed is in a pretty good place right now. a pretty good place. >> i want to leave it on this cozy -- it dove tails with our next guest but thank you both great to hear from you stocks are higher across the board on the back of that cpi. nasdaq, s&p hitting 52-week highs once again my next guest says if the fed is done raising, he sees a scenario where we can avoid a recession there are three names in particular that will help. great to see you, charlie. welcome. >> nice to see you, kelly. >> let's pick up the thread that paul mcculley was laying out you have some tactical ideas for

what investors should do >> yeah. i agree with a lot of what just got said, that there is now a chance we won't have a recession. there's always a chance, be i would put the odds of a recession at less than 50/50, and the market is still penalizing the cyclical names. that's what is cheap, like mohawk carpets and services. goldman sachs trading at book value. all of those names will do very well if we don't have a recession. yet the market is still looking for those defensive stocks, the tech stocks, names that are not cyclical so there is a real opportunity here with the inflation numbers we got today and the fact i think we will continue to have good inflation numbers, because relates are dropping, and other data that the feds don't have right now. so we get good news on inflation, we are done raising

rates, so that could mean we don't have a recession that is a very good setup for cheap valued stocks. >> am i wrong, but are you an oracle guy >> very nice of you to mention that it was the cheap tech name it was a contrarian name that was trading 13, 14 times earnings yet has a much better position in the cloud than ever been given credit for it was my biggest position and having a great year. it's getting close to not being a value stock any more but very reasonably priced at 20 times earnings >> for the sake of those who weren't in there and are wondering are you going to sell or trim here, what is your philosophy >> it's gone from leader in the industry, great growth prospects, trading at 14, 15 times, to being attractive but not dirt cheap it shouldn't be my largest position any more as it was, but still a great name with good

growth prospects trading at a fair valuation. >> so you mentioned some housing plays, there is some hope maybe that will spill over into if home depots and other parts. what if we do go into recession, however long that may take, do you throw out those names from the playbook and get a different playbook or not? >> i think the good new >>, they're still being priced, like we're going to go into a housing recession. i don't want to say that can't happen the fed has disappointed my with their actions until now, and they could do something stupid like raise rates tomorrow, and that would not be good for housing stocks so even a downturn in the economy wouldn't be def svastat at a stock trading nine times earnings

>> so in this kind of situation then, what is the next oracle? maybe it's one of the ones you already mentioned. are there under the radar area where is you think the valuations is compelling, because a lot of the rest of the market is stashting to look pretty full by that measure. >> i want to call out, it's been a very tough year for commodities. but if we have a decent economy, the demand for commodities is going to be solid. so i do happen to believe that some of the oil names, apache, you want to talk about trading at five times earnings, and mosaic, of course, is trading at less than ten times earnings stocks are cheap because people are worried about a recession, as well, which will lead to down turn in oil and gas. but if there isn't, those are attractive names that's correct perform very well. >> quick last question, charlie. some have tallied this up and say it's the most lopsided side

over, just because you have seen plenty of these cycles, does the trading action concern you does it tell you that this is a market prone to toppling over or no >> it concerns me for the s&p 500, absolutely. this is one of those markets like 1999, where you have stocks trading at very high prices, and then a whole lot of stocks trading cheap. people are seeing is s&p 500 be up so much and think the stock market is overpriced, where it's just eight, nine names so i'm nervous for the general investor the s&p could really underperform here if this turns out to be true >> it is a better than expected macro. charlie, thank you for your time >> activity in the concert area,

taylor swift is showing people really want to go to concerts. things are starting to look up msge is looking up >> up 18% year to date charlie, thanks so much. >> thanks, kelly coming up, a rare downgrade for apple. and ups warning iphone growth will decline plus, a live and exclusive interview with eli lilly's ceo the stock, one of the top performers this year we'll talk about weight loss and amz alzheimer's. and as we head to break, the dow is up almost 200 points. three quarter percent gains for the s&p and the nasdaq the russell is up 1.3. the ten-year yield 378 back after this.

this is cynthia suarez, cfo of go-go foodco., an online food delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?! overnight, users tripled. which meant hiring 20 new employees — and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops? cynthia suarez. cfo. mvp. built for cynthia's business. built for your business. amex business.

welcome back to "the exchange," everybody apple shares pulling back from record highs downgrading the stock to neutral. the reason for the downgrade, not just slowing iphone growth

but softening services demand, as well. joining us on the phone is the analyst while the stall with steve here with me onset david, thank you for your time i would say you're going out on a limb, but you raised the price target so tell me what is going on. >> thouk for having me the price target is just us rolling our estimates out to fiscal '25 so just more than anything, it captured the -- [ inaudible -- we still think thor in term is what clients should be focused on >> why is that post pandemic you say that the purchase intent has softened over the past six months >> that's a great question every six months my team in the u.s. and asia, we do a survey of over 7,000 iphone users.

so in the most recent survey, basically every market is down ticked relative to six months ago due to pandemic spending that we saw flow through the iphone model as well as other markets. but also what we are seeing from the supply chain, is sounds like apple is communicating to suppliers that demand will be softer to the point where we think that iphone builds are going down up to 9% in the second half versus the second half last year so apple is signalling that demand is going to be softer some of that is macro related, and market share is incredibly high for market. they've done a great job, and we think that share gains are going to be harder to come by. >> i want to talk about services directly tying it to these weakness in iphone sales, but

this used to be a segment where growth was double digit percentages. that's kind of gone away is apple never going to see that kind of growth in services again? what should we expect there, or are there other areas where they can squeeze growth out of services >> so a couple things. one, services driven by the app store, i cloud, some of the other ancillary businesses are strong but i think to some degree what you saw post covid is a little hangover where consumers are focused on experience rather than using the iphone to download movies and video games. the base is not expanding as fast as it once did, because the overall spending on iphones has been slower. so growth has slowed from 15% to 20% to what we think is flattish

year-to-date through may so we think that is a head wind. some of the other ancillary services like i-cloud, apple care and apple care plus are tied to the base, so we think that growth will be much slower going forward. >> steve, give us some context and the significance of what dave is saying here. >> one of the stories apple is trying to tell, they started telling this two quarters ago, look at india, look at south asia, indonesia, vietnam we're growing there, taking market share away from android but what was interesting about this note from david here is, it's just not enough, because the real money making countries are china, the united states, europe, japan and so forth and the slowdown there is not enough to make up for it my question for david is, is apple talking too much about these emerging markets and not enough about what they're doing in those other region where is they sell the phones

>> great question. clearly they are seeing strong demand in these emerging markets. but as we pointed out, india, for example, is only 3% of total iphone sales more importantly, if you look at the demographic, only about 5% to 6% of phones are more than $600 so that's a difficult market for an toll crack when the gdp per capita is different than china so people expecting that market to replicate what is going on in china might be a little disappointed at the end of the day, the share gains in the u.s. and in china to a lesser degree are probably older for apple. if you look in the u.s., it's really tough to see that going much higher. so apple has a lot of heavy lifting to do. emerging growth will be a good market for them, but not enough to drive it back to double digits for this business

>> you say u.s., china, europe where is it the softest? >> for example, in the month of april, apple reports revenue on sell-in. overall market was down about 5%, the u.s. was down 20%. so consumers aren't purchasing devices. and the u.s. has been heavily subsidized by the carriers, t mobile, at&t, so without more aggressive deals, you're not going to see an uptick in the fall so weakness is pervasive >> david, thank you. former president trump getting ready to leave his golf club, making his way to the u.s. district court in miami for his arraignment in the classified documents case you can see the motorcade beginning to move there. >> i believe what we are looking

at are live pictures and i believe those are miami pd officers you will see a mix of local officers and the u.s. secret service escorting the former president of the united states from his resort there, over to the courthouse in miami, where he will be arraigned on 37 counts, charges involving violating seven different statutes, including the espionage act, in the course of mishandling a classified u.s. defense information and united states nuclear secrets as we said so many times, we have never seen a former president under indictment we have never seen an espionage act charged against a former president or we have never sewn -- never seen a president being arraigned. we'll watch the scene around the courthouse to see how many

pro-trump or anti-trump protestors show up on scene. so far, it seems like just a couple hundred people on site, as we fate for the former president's official departure heading to the courthouse in downtown miami >> we have some florida officials for everybody to keep calm my understanding is there was a question whether these charges would be brought, whether it was washington, d.c. or florida. >> i think the key is the underlying conduct being charged here took place in florida at mar-a-lago that's where the documents were stored and where he saw th prosecutors release those now famous pictures of the boxes of documents to be stored

so it made sense from a legal perspective to charge in florida. but from a legal defense perspective, you are right this might give an edge to the trump defense. the jury pool in south florida might be more amenable to former president trump than a jury pool in the district of columbia, which is a very blue city. you might have more people predisposed to be in favor of donald trump on that jury in south florida if this case gets to that stand point. what we see right now is just the arraignment in front of a judge, we expect the process to take an hour and we expect the former president to be in custody of the u.s. marshals, but to be released shortly thereafter then we expect him to head to nunl where we might see remarks later this evening >> and normally, we might be getting the details that we already have about the charges

in this arraignment. but because the president began speaking about this last week, it sounds like u.s. officials then released the details to the public a little earlier that be they otherwise would have, taking some of the drama out of what we might hear today >> yeah. the prosecutors filed with the court to release that, just given the crushing amount of interest in this, and the real legitimate interest that the american people have in understanding what the charges t of the united states the difficulty for the law enforcement officials and the judicial system is that donald trump is a current candidate of president of the united states in 2024. he is fund-raising right now off of some of these events. so that complicates things there is an enormous american

interest for people to see what these charges are and what the special counsel has done charging the former president with 37 counts of violating seven different statutes they released on friday about the documents, the extent that they can, that were classified, including u.s. weapons secrets, that he had at his facility there and declined to return to the u.s. government. >> what are we heard from others on the campaign trail? my understanding is that florida governor ron desantis was making some comments in defense of the president saying we shouldn't set this precedent >> yeah, you see a lot of frustration among republicans and republican candidates. they argue that hillary clinton and joe biden have done similar things, yet you don't see their indictment or arrest, you don't see this kind of a scene involving those political figures.

therefore, they say it's not fair what is happening to donald trump. you see some of that coming from some of the other candidates but we also say nikki haley who is a candidate, suggesting that, you know what? these alleged crimes are serious. people who are deploying in the military depend on secrecy to protect themselves from foreign attack, right? the u.s. military invasion plans are secret for a reason. the u.s. nuclear inventory and capability is secret for a reason so you see that argument starting to percolate out from some of trump's political republican rivals. >> as we watch the president and his motorcade depart, a judge said members of the media will not be able to have any electronic devices in the courthouse

>> that's right. we're not going to see live dispatches from reporters in the room we'll see what happens here. this will happen according to the book, the former president will be fingerprinted here and use a scanner for that it's modern technology, we won't see the inkblot bs used. so he will put his hand in the scanner. they will use an existing photo of the former president. plenty of photos out there so they don't take a new one here in this case. and the pos will be by the back, and the message from jack smith is no one is above the law, even a former president of the united states >> thank you those cameras will continue to follow the president dow is up 196. the s&p, the nasdaq hitting

fresh 52-week highs. and some home builders hitting all-time highs check out dr horton and pulte. dr trading 11 times earnings. the semis are having a good day. office occupancy broke above 50%, sending office reits like boston properties and others higher today a laggard there is california focused hudson pacific properties all of those names still down big this year, as concerns about the office sector persist. coming up, oil rebounding, but goldman lowering their price

tasket my next guest says the oil market is in show me mode. take a look at shars of gamestop j ownership has been boosted to over 12% of the company. back in a couple 06 minutes here on "the exchange." (sirens) [due at target in 5!] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse! next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!] -coming through! -or 3, let's go. the network more businesses choose. transplant received. at&t business. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey!

rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

welcome back crude oil rebounding after opec's report, and china's overnight rate cuts. opec did warn of a global economic slowdown in the second half of this year. this comes after goldman sachs, one of the most bullish banks on oil prices, lowered their year end price target goldman's jeff curry saying this morning, he's still bullish long-term. for more, let's bring in the cio of pickering energy parter ins the best of times and the worst of times for the energy space.

what is your broad read on things >> $70 oil is not a bad number for the sector, but it's disappointing. opec will extend their cuts to 2024 saudis said they would do whatever is necessary to protect price, yet price is flat so kind of a nothing burger coming out of the opec meeting the market is frustrated we haven't seen more strength it's coming. it's just a wait and see game that we will have to see inventories drop as we go into that part of the year. if they don't, there's something wrong with demand, and $70 will be the number we have. oil is going higher, though. >> people are saying the economy is going to be fine, there's no recession, everything is goldilocks so it sounds like maybe the

entire energy market, this is just simply supply liquidation is that the first half story, just way more supply on the market as expected, opposed to demand weakness? >> i think that's right. the fear of demand going forward is the overhang on the market. plus, you have russia continuing to produce well above their stated quota so you have been anticipate thing tightening market. the market is not really anticipating more so we have this show me attitude, show me that the market is physically tightening and i think oil goes higher. demand growth this year, 1.5 million or so supply growth. so we got a market that should tighten. until it goes, tighters are saying prove it to me. >> what is going on in the

permian? is there a sense there that volumes have peaked? >> i think that we have drilled our best inventory in the permian. the fear is that the inventory of increment allocations to drill is starting to dwinldzle, so production growth will be tougher. you couple that with the commitment of the upstream companies to return cash to shareholders, there is a view, and i think it's generally correct, a view that the u.s. has seen its best days of supply at 12.4 million barrels a day. i think it will take much higher prices to get us beyond that so the permian is still a great place to be, it's just we are spending less out there. >> and two of your favorite names are diamondback and pr you also like conoco phillips. so why do these names jump out

in an environment like this? >> you bet so in a world where oil probably does go higher, you want leverage to that point two, they do have good inve inventory. in the meantime, they are returning and growing nicely so i like those two. conoco, just a good, solid company. offshore is where activity is improving, and if you are drilling out there, you are paying more. so i want on those rigs. >> dan, believe it there i loved the podcast with chair powell the other day >> thank you all right. let's take another live look at former president trump's motorcade making its way to the

miami courthouse for his arraignment on those 37 charges. we'll continue to follow the story, as he makes his way there on a busy miami afternoon. the global obesity drug market could hit $40 billion by 2031 drugs like ozempic have snagged tons of headlines, and another drug was fast tracked in october and one expected to gain market share. for an update on that, let's go back out to boston where we are joined by the ceo of eli lilly and bertha coombs. >> david, i want to start out, you were talking on stain about needing to make some adjustments

and talk about reimbursement i wanted to ask you about your alzheimer's treatment. we saw last week, the advisory panel recommend full approval of this what are you going to do with regard to your submission now, and what is your expectation if you get full approval? >> thanks for having me on we're in an amazing time for the invention of new medicines here we have medicare or cms, which is said they're going to require coverage with evidence development. you have to basically be in a clinical trial they haven't spelled out the details of that, and we'll learn more, but what we said is this quarter will finish our resubmission based on the full results -- >> and you expect a full

app approval >> by early next year, yeah. and hopefully the government can reimburse patient whs who need i drug >> they say it won't impede coverage >> we're skeptical it won't impede coverage. we have had some experience here we make the brain scan used to detect the hallmark of alzheimer's. and for ten years, we have been under coverage with evidence development. that was purported to be a light study, as well but it's a lot of paperwork for doctors and hospitals, for families and caregivers of those concerned about their parent or loved one who might have dementia, and it's been a barrier, particularly in rural america, or for people of color. so we don't think that's the way to go.

they should just open up coverage >> another big issue that people have been talking about here at the conference is the i.r.a., the "inflation reduction act" and what that is going to mean for drug development and what it's going to mean in terms of negotiation. yest you have to take the price or leave it, or they are going to fine you if you don't accept that >> i agree with that there are several defects with this law that's one of them, which is it's called a negotiation. but we already negotiate for almost all access in medicare, we just do it with third parties. our prices are way lower in medicare than they are in the commercial market. so there is negotiation. the government wants to step into that and play a bigger role, that's a problem because it's not a negotiation

you have to take it or leave it. but the biggest problem is when they proposed to negotiate, which is for pills or small molecules, as we say, as early as nine yearsinto a 20-year patent life. boy, that's going to really truncate investment in what is one of the most efficient parts of health care, and once they go generic, they become cheap the u.s. has the cheapest generic prices in the world. that's how drug care prices remain sustainable in the u.s. investors are saying why invest in any of this just focus on biologics. so i'm really worried about the harm this will do to new cures and possibilities in medicine.

>> i hope everyone has caught that i just want to show your share price. this is kelly here maybe we can go back 10, 15 years, your stock has gone parabolic. you're involved in alzheimer's, weight loss. talk to us about the pricing for the -- the monthly pricing for something like this drug let's listen real quickly to what your co- -- oh, we don't have it. the bank of america's ceo said the number one health care cost for our teammates and total people is going to be around heart related and obesity related issues what is the break even here? >> great question. manjaro is an exciting drug.

really a huge breakthrough you mentioned the pricing. that's the list price. the negotiated price for most insurance coverage and for brian's company will be something closer to $400 a month. most estimates show that about $1 trillion of -- there are $4 trillion we spend on health care in the united states, is related to obesity and consequences. so i think we'll do very well with the follow-on products that come from behind it. i don't think we will sell a trillion dollars of it at $400 per month, we offer great opportunities to save money. even in the short term we're conducting currently over 30 studies in this family of medicines, everything from

congestive heart failure reduction, cancer rate reduction, even sleep apnea, where over 7,000 people rent a sleep apnea machine. so i think this will more than pay for itself. itself >> incredible. >> all right go ahead bertha >> got to cut it short right now but thank you so much for joining us kelly, back to you. >> great to be with you. >> bertha and i could both ask about 20 minutes more. thank you very much for being generous with your time this afternoon. coming up the dutch family who sold everything and put the proceeds into bitcoin back in 2017 when it was $900. it is around 26 k today. they've hidden their coins in wallets all over the world and we'll look at the fallout they could feel from the s.e.c. crackdown on crypto exchanges next here is another live shot of

former president trump's motorcade making its way to the miami courthouse the former president has now arrived. you can see the motorcade pulling up as they get ready to disembark. as reported earlier, he is expected to go in, be fingerprinted. they don't need a photo. >> reporter: this is history we've just never seen anything like this. we see the former president's motorcade now pulled up outside the courthouse we weren't sure whether there would be an under ground access point or above ground walk-in. it wasn't clear what kind of pictures we'd see of the former president's arrival. as we see now vehicles pulling into the building. it looks like they are descending into a garage type access point we may not see the former president walk in here at all. what is going to happen behind closed doors inside that building is the president is going to appear before a magistrate judge those are the federal judges who handle basic processing kinds of things, first appearances and

that sort of thing this case will ultimately go before a different federal judge but for today the magistrate judge will handle all the business the former president conducts inside. we do expect that we'll see the former president as you said fingerprinted, photograph entered into the record though not taken in the building here the charges will be read to the former president of the united states we will see him depart this building we think in about an hour a little unclear because we've never seen anything like this before we have to watch and see how things unfold. this is fairly standard procedure. the rule book for this is pretty clear. we just have to wait and see how it goes today in this very, very extraordinary case. >> thank you we'll continue to follow that k ear a quicbrk. much more of "the exchange" to follow in a moment no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds,

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 solution ibm and a global bank created. what will you create? ibm. let's create. this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, 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. what do you see on the horizon? built for your business. uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today,

when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get

unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™. welcome back to "the exchange" where we are watching as the former president has arrived at a miami courthouse for arraignment. >> reporter: what we've just witnessed here is the former president of the united states arriving for his arraignment in federal court in miami one interesting item we're

learning as the president's motorcade was making its way to the courthouse here is that in the vehicles with him we are told was walt nauta the former president's co-defendant in this case, the former president's valet, former navy valet in the white house who then traveled to mar-a-lago in the private sector and worked for the former president at mar-a-lago. walt nauta, himself, is charged with crimes here in this case as a co-defendant and allegedly was the person who moved the boxes of classified documents around at allegedly the former president's direction to evade detection by lawyers and others trying to figure out exactly what was in the former president's possession that is interesting and significant because presumably prosecutors would like to break walt nauta's allegiance to donald trump and flip him as somebody who could be a witness against the former president of the united states. avery, very junior figure here

given a point of prestige you would say in being able to ride in the motorcade with the former president. maybe a signal from the former president to prosecutors that nauta is still on his side that is something that might work to the former president's advantage if he can keep that relationship strong and keep nauta from flipping on him and providing evidence to prosecutors of exactly what the former president told him to do with those classified documents. that is at the heart of this case here. >> i am reading the coverage where the journal reports that the atmosphere outside the courthouse has been sometimes tense as demonstrators exchange profane chants and at one point authorities in bomb squad vests were seen near the building. >> reporter: these things in the modern media age have become a bit of a circus. it's become a platform for people to express all kinds of views pro and con and everything in between what you worry about here in the wake of january 6th of course is any intentional use of political violence by people who are

supporters of the former president of the united states trying to disrupt this proceeding in some way so far we don't see any indication of that but as you can see law enforcement is there on a very high security alert. the secret service is obviously with the former president to protect him. let's hope everything goes well. >> for now, thank you. that does it for "the exchange" and "power lun" ckchpis up after the break. don't go anywhere. dow is up 165. there's an abundance of reasons to get started. how far we take an idea is a question of willpower. because progress... is a matter of character. conventional thinking delivers conventional results. at allspring, we break away with purpose.

harnessing data-driven insights and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all. allspring. purposefully divergent. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. somebody would ask her something and she would just walk right past them, (laughs). she didn't know they were talking to her.

i just could not hear. i was hesitant to get the hearing aids because of my short hair. but nobody even sees them. our nearly invisible hearing aids are just one reason 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. good afternoon and welcome to "power lunch" everybody coming up we are 24 hours almost to the minute from the fed's decision on interest rates many market watchers think there is a cause to pause. today's cpi, big inflation reading showing the slowest growth in two years there. we'll discuss what it all means for the fed and the markets plus