good friday morning. i'm melissa lee along with david faber post 9 of the stock exchange setting the future of this rally. bank of america warns a collapse is ahead but paul hickey says, not so fast. has the ipo window reopened? what cava's strong debut means for spacex and arm cleo capital sarah joins us. chinese evs are making a big move into europe former ford ceo will weigh in. let's give you a check on the markets. a mixed bag. nasdaq is down a bit but the s&p

holding onto gains of course, we've had a very strong week overall for the broader markets. >> global stocks are on pace for their best week since march with the ishares etf up more than 3% but options and s&p rebalancing rattle what's been a worldwide bull market? bob pisani joins us with more. >> melissa, you and i have been doing had a long time. today is an expiration day this happens four times a year two events happen today. number one, this is what we call a triple witching day. what happens here is this is the quarterlily expiration of three things -- stock and index options and index futures. this used to be a very big deal 10, 20 years ago it has become less of a big deal because of the dramatic expansion of weekly and monthly options that has spread out the party, you might say, a little bit. so, the impact of this re -- of the expiration is not as great as it used to be

electronic trading has also made this a lot more efficient in general. the second thing that's happening is this is also the traditional day, four times a year, for the s&p 500 to rebalance. so, i'll show you the -- i think the most important event for the day is palo alto networks is coming out -- excuse me, is going into the s&p 500 and then we're going to be having dish networks go out. dish is actually not only going out of the s&p 500, it's actually going into the s&p small cap 600. it's not even going into the midcap index there's a very predictable effect that happens. this was announced on june 2nd this is known as the s&p effect. in addition going into the edition tends to increase the price of the stock this is predictable. palo alto is up 12% since the announcement dish is down a little bit. the other thing that happens is this the day when all the index funds, for example, funds indexed to the s&p 500, ishares,

vanguard, state street and others will put their buybacks in they're essentially rebalancing. throughout the quarter, companies have announced buybacks the usual suspects are here that have been reducing their share counts, apple, alphabet, chevron, berkshire, exxon, meta. they have been traditionally reducing share counts. the only note one is nvidia. what happens at the quarter, at the end of the day, the index funds will be reducing their share count of those that have been reducing their shares and adding to it this should not really result in any price change there will be an awful lot of volume we're already seeing notable volume in some of the big index etfs today generally does not result in any particular share change, price change the important thing is, this has

become extremely efficient due to electronic trading. people are well positioned to see this nonetheless, i'll keep an eye on it at the close and, of course, we'll keep everybody updated back to you. >> it's interesting you mentioned the role that options play in terms of dampening the volatility around this event, which used to be a huge booster, in a sense we're also seeing that impact on the overall volatility index, correct? as i understand it, 40% of s&p options traded are actually zero date to expiration options the ones that expire within a single day, maybe that's why the vix is at 14, amazingly. >> yeah. this has become a really big business in fact, at the global exchange conference last week, the piper san sandler, there was an entire session devoted to zero date options. as melissa said, are options traded on that day they're expiring on that particular day so, the business has gone from,

think about this, quarterlily trading in derivatives, in options and futures, to monthly, there was whole bunches of these several years ago, and weekly. now you're with getting stuff where there's active trading on stuff expiring on a daily basis. the options universe has spread out dramatically that's why the impact of this quarterly event is less than it used to be the other thing, melissa, when you go away for the rebalances, when you go away from floor based trading to automatic, electronic trading, it gets a little more efficient. you don't get the kind of price dislocations you might have gotten many, many years ago. it's just automated a little more efficient >> bob, thanks bob pisani let's take a deeper dive into where the major indices could go on the heels of the fed pause. our next guest says they will continue rising, even though michael hartnett feels this is a

collapse rather than a brand-new bull market. joining us, bespoke investment co-founder, paul hickey. great to see you. >> great to be here. >> what does history tell us >> if you look back -- we can look back from the market perspective or economy wide perspective. let's take inflation first, cpi. we're less than a year from the peak of inflation. we dropped five percentage points year over year from peak reading. look back five other periods post world war period, the market was higher every time the people on the new york stock exchange don't think paul volcker is a saint for nothing just from a market perspective, so we can look at a number of different ways, but this past monday we hit a 52-week high in the s&p 500. hadn't done that before in over a year you look back every other time that's happened, about 16 times, the only time we weren't higher a year later was in 1947, i

believe. every other time since then we've been positive. and what you do see in the short term, though, you tend to see the market pause and refresh i mean, we've had ten straight days where the s&p has traded two or more standard deviations above its 50-day moving average. that's what we consider extreme short overbought when you look back historically over these periods, they tend to be long term very good opportunities for the market you just got to admit it, the bull market is back here >> you have to admit it. you have to admit it, david. >> commiserating, this market is not the mets so, it's been so painful to watch the mets at least we get to watch the market going higher. >> i've been focused on the market more than the mets of late we're not done yet most of these traders probably don't remember who paul volcker is the market abating and the market, do we have a typical advance during that period of time >> in those periods when the market was down, when you had inflation pull back, it was a

median return of 18% from the high single digits to up to 30%. what's really interesting, too, gdp was down the first half of last year two quarters in a row. you look back historically again, the median gain in the s&p 500 one year after back-to-back quarters of negative gdp is over 30% what we've done in the last year has been impressive, and this year, but some could say it's even been below average. >> there's always an aspect of it's different this time around. you present this historical data, but if you were to actually take a look at what is happening now versus what happened in the past, what could be a difference that could make this pattern not come to fruition >> i think we've had such a -- i mean, a crazy economy in the last three years we've had the covid shocks, coming out of covid, record, you know, hawkishness from the fed, but the fed now is becoming less aggressive they talked a good talk on wednesday, but they sort of had to say that just to not tell the

market, okay, all clear here but we think going forward you're going to see the fed slowly pull back from that more hawkish stance and the rates aren't going much higher from here >> he was pretty clear the other way. i mean, he said, we're going to keep rates where they are for the next two years potentially. >> i'm not saying rates have to come down from here but they don't need to go higher. the michigan confidence reported, inflation expectations down 3.4%. that number is coming back for all this talk, inflation hasn't come back as quickly as people would imagine we're only less a year removed from the peak. it two years for inflation from covid to peak out. do people expect it to come down instantaneously? that's the question. and it's a grad process. >> paul, thanks. want to bring you some headlines we are getting from the fed semiannual monetary policy report. the fed saying bring inflation

to 2% goal will likely require a goal of below trend growth saying inflation has moderated somewhat but not enough though longer term measures show inflation is not entrenched. perhaps alluding to those lags, the report is no longer using the language that ongoing rate increases will be needed fed chair powell will be on the hill next week answering questions from congress on this new report after the break, does cava's 100% ipo surge open the door for other unprofitable companies to go public and do well in their debuts we'll discuss that. morgan stanley says nvidia is now its top pick in the ai space and race but it's not the only name they see riding that ai wave, including some surprising names. e alt hi t cl will join us.

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take a look at shares of cava after the stock doubled yesterday, it is starting to weaken significantly of course, it had that amazing debut yesterday. almost a double from the $22 price that it started at with its ipo. a lot of speculation about

whether the flood gates will now open as companies look to that great debut and say, hey, we can do that, too our next guest says the ipo window might be set to reopen, perhaps this fall. joining us, sarah kunst. it's good for funds like your own, perhaps, even higher up the chain in later stage and sponsors to be able to access the capital markets. sarah, why do you think the fall could be a good one for ipos >> you know, i think what we're seeing with this cava ipo, that valuation, even though it's dipping a little bit today t had a blockbuster pop at the open. that's making some real money for a chain that hasn't been around that long, doesn't have that many stores and isn't that big. and, you know, we've seen similar success with some of these other ipos recently, the johnson & johnson ipo did really

well when you look at the ipos in the wings in tech, massive names like spacex, like arm that softbank opens in the ai space, there's a real possibility they could be winners in the fall. >> nobody is talking about spacex going public, just to put that out there maybe starlink, who knows. that's total speculation unlike stripe or arm, which many people have talked about we're going to get arm most likely later this summer or early fall that's a big one what did technologies, is it more important we get one that succeeds in terms of its opening debut? >> i think there's a big difference in the business model between arm, which is in the ai space and the chip space and cava, which is great feta dip but not exactly high tech. the reality is that, i think, there's a need for a tech ipo

that lands, that works, that makes money for people, but these tech investors invest at such early stages that they don't need it to be this massive success for them to still make money and return it to their investors who have not seen any returns for quite a while. >> how does this change what you are willing to pay and for which companies in various sectors i mean, does cava's debut make fast casual dining more attractive in your view? obviously there's a public market for it. >> i mean, i think you can look at other names like sweet green and things like that i don't do a ton of food and restaurant investing we know fast casual and quick service restaurants are growing industry and a growing space i think people continue to look. it's worth noting that cava actually during covid had to close stores the 263 stores they have now open, they actually had more open prior to covid. they dialed that back. but they think there's a path to get to 1,000 open stores they also sell the prepared dips

in restaurants you know, the reality is that they have a business model and a customer who loves them. i think consumer companies that have that with some decent margins are potentially going to see some happiness in the ipo markets. >> well, we're looking forward to that if it, in fact, happens. sarah, thank you. >> thank you >> sweet green used to be a $54 company and now it's 10 bucks. >> yeah. the stock has -- >> from its ipo. >> cava would like to compare themselves to chipotle's business model - >> i would to. >> as opposed to sweet green. speaking of restaurants, ai is now working its way into the industry as companies look for ways to become more efficient. kate rogers has more on that story. kate >> good morning, melissa research from cowen anticipates widespread adoption of ai for voice ordering and kitchen r robotics in the next 12 to 18 months for several reasons including a tight labor back drop and unionization risks.

restaurants that are or have tested the order technology include yum brands, carl's jr. it's upselling consumers in a way humans might not be comfortable doing andfreeing u time for workers to interact with guests. penera is testing out voice recording and ai on coffee to shore up quality and temperature control. >> the two areas we're investing in is ai in our drive-through, which is really oice-enabled a to help automate the ordering process and free up our associates to be able to focus on high-quality food production as well as guest interaction in the cafe the second is around our coffee quality and temperature control. a little less guest-facing in terms of what they interact

with, but they benefit from the result of that ai helping us produce and provide a better quality and more consistent product. >> now, chipotle has a similar use case with chippy, also a meso robotics product. the next iteration determines how many chips need to be made with ai technology speaking with tech executives from both of those companies, the emphasis is on freeing up time for workers to interact with guests. >> what are some of the downfalls and challenges in ai you hear it's sort of a panacea and the greatest thing since sliced bread. >> franchisees at bigger companies like mcdonald's or restaurant brands international getting on board and agreeing it works. language model is brought up to me by cowen, they're tough to train in whatever language and the nuances of the menu and ordering you have to have a well-trained

language model that understands all of that around customization. and that changes restaurant roles as well in certain capacities what does that look like for workers? no one wants to be first because they want to get it right. andrew charles at cowen mentioned to me this sort of looks like what third-party delivery looked like five years ago. some brands were testing it out. it's everywhere now with the exception of mcdonald's -- or domino's which doesn't work with third-party. >> they were first in automating a lot in how they do things. is domino's out there as a leader here? >> i'm sure they're thinking about it, but domino's also, you have to consider looks at this as a tech pipeline where things will be around for a very long time i don't think anyone wants to be first. i think people want to think about it in a thoughtful way and get it right and make sure not only are customers happy with what they're seeing and also workers. this tight labor market is also a key factor here. this can make things better.

the ai and technology needs to be working in a way that works for them so they don't up and quit because they don't like what's going on. >> thanks, kate. kate rogers. is china's ev push in europe a precursor to their strategy in the u.s. will tesla's dominance be challenged mark fields will weigh in. plus, keep an eye on meta. b of a hikes the price target. the stock has already had an mazing year, up some 135%. we're back in two.

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european markets set to close momentarily, mostly higher as they digest ecb rate hike and hawkish language bank of he can land expected to raise rates next week. gilts two-year high.

and bank of japan keeping interest rates at ultralow levels and the nikkei hit 3,000 for the first time in 33 years earlier this week. >> that was notable for sure during that great bull run through the '80s and not getting back there for 33 years. let's get to a news update >> in a rare 3-3 decision, iowa state supreme court declined to reinstate a law that would have largely banned abortions it was a rebuff to republican governor kim reynolds who signed the law which would make abortions illegal after a heart beat is detected that can be as early as six weeks of pregnancy, before many women know they're pregnant. nevada authorities arrested a man less than four hours before the start of game five of the stanley cup final, who they say threatened to carry out a mass shooting at the golden knights arena. police say the man who has a history of mental illness sent

messages to people and made a series of phone calls and social media posts claiming he would shoot up the hockey game at least three people contacted authorities who took him into custody thursday afternoon and prince harry and meghan markle's podcast deal with spotify is over. the couple produced just one series called "architypes" and won the top podcast award at the podcast awards it will not be renewed for a second season, david >> thank you morgan stanley names nvidia a top pick despite that run of 195% year-to-date. with a $1 trillion market cap. raising the price targets on a number of other ai names the analyst behind the call will join us next. plus, june is pride month and cnbc is celebrating all month long and sharing stories of corporate leaders with you. here's glaad ceo president kate ellis. >> coming out for me at work

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morgan stanley shifting their top pick from amd to nvidia, noting nvidia is likely to be the only company to beat and raise in 2023 due to ai but they are bullish on the ai space beyond this year, raising price targets for both names along with marvel and intel. the analyst with that call is morgan stanley's joseph moore. nvidia is your top pick and it coincides when nvidia makes a fresh record high. you see $500 for the price target what would you say to those who question the valuation they don't question whether or not nvidia deserves to have a premium multiple they don't question that nvidia's currently winning the ai race. they simply question how much of

a premium it should trade at >> yeah, i mean, i think it's been an amazing move i think -- i've covered the stock since the ipo and seen it at $1 trillion valuation takes some getting used to we're also seeing the strength of business that is unprecedented. both what we saw in the last quarter, what we've seen since then, we continue to hear about new, big orders from customers that weren't on the customer list three months ago, from governments, from, you know, enterprise spending, which are smaller increments than what we see in cloud we're seeing real strength in the business i think these numbers can keep going up what's remarkable is it's happening in a constrained budgetary environment. so, cloud capex budgets aren't really going up. we're just seeing a pivot away from traditional legacy spending towards ai that's why we make the comment that there's one company where numbers are going up because everybody else, you know, even

though they're all nicely levered to ai, they still have exposure to the traditional server business which has some downside a lot of strength in the business i agree it's a premium valuation. always has been. but it's a really unique situation that in 30 years i have not seen something pivot in this direction with such speed four months ago you had the company was kind of another company that was dealing with sort of budgetary pressures and things like that suddenly now they're seeing this kind of surge. it's pretty spectacular. >> i note in your note that you you say our industry contacts are reporting daily new orders from customers that were not contemplated as major customers until now. can you give us a sense as to what you're talking about there? >> sure. when we first upgraded the stock in march we had a reference point of growing this data center to $40 billion in three years. we were thinking that would mostly come from cloud customers, traditional big-scale cloud customers and the growth would come not from more people

investing in these models but growth and complexity in the models, from more vertically atenuted models, from translation of those models, things like that what we're seeing instead is significant breadth where we're seeing companies in the applications development world that we would have thought would be developing these models in cloud or using models that were developed in cloud, instead developing their own models. we are seeing governments sort of having significant new activity here. i think there's a number of places we're seeing a number of models for something that's very capital enss ive like this that's broadening out quickly. that's why the business was as strong as it was when they guided july and everything we hear is it continues to get stronger. >> maybe it's my nature, joseph, but when i got your note, i immediately went to your bear case because i wanted to understand what you saw as the potential pitfalls in your call. one is gaming doesn't improve, software in automotive doesn't see the tailwinds anticipated,

and in the ai bucket, developmental costs come down as a strong competitor emerges but nowhere is it mentioned that ai doesn't materialize. how confident are you in an environment where the fed is putting out their 6% as a possible terminal rate that the spending will actually come through, even with all these new customers that you didn't anticipate were going to be new customers just months ago? >> that's a great point. when you sort of see the number of customers that are ordering that weren't anticipated, like how do i repeat that and i think it is -- i don't want to just look at the strength and assume that we have a very high from here. having said that, we appear to be booking out through certainly the rest of this year, through a good part of next year, we're getting visibility into growth that's around that there have been a number of hike cycles in semiconductors over the years that haven't materialized i believe ai is a more

transition that is going to have legs to it i do take your point i think when you look out three, four years there is the risk of a plateau that we spend this money early on we've identified in these larger ten-year computel cycles. longer term i wouldn't assume we can keep growing at these rates but the visibility we have into growth for the balance of this year into next is very strong. >> you replace amd with nvidia as your top pick you still like amd there are those who are, perhaps, a bit skeptical in terms of their ability to really compete with the latest chip or whatever iteration may come. are you amongst them >> we see significant interest in amd's ai product. this is product that isn't going to be out for a few months, so this is where you sort of have less upside to numbers than we'll see at nvidia because most of their business is from traditional data center as well as embedded in other markets there's a lot of interest. and i think it's a combination

of having good products for amd around the ai theme, but also, you know, you're hearing from all of these people developing these models that we need to reduce the cost. when you talk about the profitability of the internet companies, we need to see significant improvement in the cost per query to make this make sense at scale and part of that is having less expensive hardware i think the amd mi300 launching in q4 there's a lot of enthusiasm for that and i think they'll establish themselves as a significant player in ai after multiple false starts. the top pick rotation is more a function of this stock's up almost 100% year to date and nvidia is up almost 200% but nvidia's numbers have more than doubled. the expansion in amd is higher and our sense is the nvidia numbers will continue to move up and amd numbers de-- we'll be happy if they don't come down until we get to the next leg of

the growth. in other chip news, micron warning about a chinese government probe, in an 8-k filing that half its sales to china that half of clients could be at risk the stock is down about 1.7% on the news after the break, chinese automakers are quickly becoming global ev players. phil lebeau is in london with more on that story phil >> david, the growth for the chinese electric vehicle companies is right here in europe specifically, here in the uk what's driving their growth and how much of a threat is it to tesla? that sryheweetn.to wn rur 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,

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welcome back want to highlight a few names hitting all-time highs not in the tech sector. lennar, mckesson, boston sigh tin ifk and snap-on. china automakers becoming major players in the uk ev space. phil lebeau joins us live from london with more good morning, phil >> good morning. or good afternoon if you're here in london, melissa when you look at the ev space, a lot of people say why is tesla number one worldwide take a look at the leading ev automakers in the first quarter. why is tesla ahead of byd? not only because of china, the u.s. as well as europe, it's strong in all three of the major markets. but here in the uk, as well as

other parts of the europe, you are starting to notice a change. you are starting to see more chinese automakers coming into the market mg is owned by a chinese company and polestar owned by geel chinese ev vehicles in europe up 80%. the question is, how much is a threat of chinese electric vehicles here in europe to tesla? a lot of people think it's a strong threat because they are coming in with high quality, lower cost options when it comes to electric vehicles and for tesla, it does have the model 3 and the model y, which can compete in that market but that's why you hear the discussion of should there be a model 2 at some point in the future so it can be more effective competing against the chinese not only in china but also here in europe. it is something to watch, guys this ev battle over here in europe, you notice the chinese

vehicles a lot more than you did, let's say, five years ago they're already up to 8% market share in the electric vehicle market that's expected to grow over the next several years >> phil, price points, you know, in terms of where are they coming in, at the low end, i assume >> yep, at the low end and they're decent quality, david. there was a time if you said to somebody, are you interested had in a chinese vehicle five, six years ago people would have rolled their eyes and said, are you going to get something as good as you could from a european automaker or from tesla? what you have now are vehicles that some will say they're not at the same quality as maybe the europeans or tesla, but the gap has closed considerably. that's why they're getting so much attention, especially for buyers looking for a lower priced option. >> phil, thank you phil lebeau in london. great picture right behind you. let's continue this conversation with former ford

ceo and cnbc contributor, mark fields nice to have you with us what's your take on the chinese ev makers overall, and, for example, the quality of the product they're putting out at a certain price point? >> yeah, well, i agree completely with what phil just said if you look at the chinese ev products right now, they are very, very good. listen, the chinese knew they missed the opportunity with internal combustion vehicles in terms of driving market share not only in their home market but abroad so, they doubled down on the ev market both from a tech standpoint, a battery standpoint and from a vehicle design and quality standpoint and, you know, i think they're very competitive in their home market as you heard, they're gaining market share in europe these products are, in some cases, world class, and i think people are going to be really surprised by not only that but the price points, which are very important to consumers in terms of adopting evs. >> it would be difficult, i

imagine, mark, though, for chinese ev makers to come to the united states and have a fighting chance simply because of the barriers that are erect in terms of the i.r.a. requiring certain processes to be in the united states and chinese automakers don't have that capacity yet. >> yeah, you're exactly right, melissa. they're not going to be eligible for the $7500 incentive that's available if you need the local assembly requirements and element requirements of the batteries. that being said, if they have a major cost advantage to start with, you could argue that even if they don't have those incentives, they could still be competitive from a price point standpoint, but then you get into issues around, okay, they have to either build a distribution network or sell direct, which is a challenge and then the geopolitical issues you know, buying a chinese vehicle in the u.s. and all the thoughts that go along with that, you can't calculate the impact that would have

>> mark, i haven't spoken to you since we got those announcements from gm and ford in terms of using tesla's charging network i'm curious to get your take on the significance of that, what it's going to mean, up, if we do finally have, it would seem one standard for charging vehicles here in the u.s. >> well, it was a very important announcement at the end of the day, when you look at the production that's starting to gin up at the automakers, like ford and gm and others, the products are coming, the production's coming online and the automakers and their ceos are saying, hey, we have to get rid of any fear from the consumer about being able to charge their vehicle so, this was -- you know, the question is not is evs going to continue to become, you know, a higher percentage of the marketplace, but it's how far and how fast and i look at their products coming and said, listen, we have got to accelerate the availability of chargers for

consumers or we're going to have a big problem. i think that's why they made the agreement with tesla and the other thing, david, is it's not only the availability of chargers, it's the -- or the amount of chargers, it's the dependability and the availability of them and the quality of them because there's a number of them -- there was a study done, i don't know, a month or two ago that said one out of every five charges with the ccs standard was not working. they get dependability and quality with tesla and more of them, which is hugely important. >> what's your guess on the economics of such an agreement in terms of the cost to the fords and the gems to use this technology >> well, i think, as i said, they're going to start implementing on their vehicles the tesla, what they call the north american charging standard into their vehicles starting in model year '25 year. they have to put, obviously, you know, a charger into the vehicles, so i don't think it's a huge on-cost, but i do think

from tesla's standpoint -- listen, they've done a very good job of not only creating a business of vehicles and selling vehicles, but all the ecosystem that goes around that new revenue models so, they're going to get incremental revenue for charging by having ford and gm, and i believe others are going to follow pretty quickly, and that's going to give them an advantage because right now the automakers don't make money or make very little money on their evs. their margins are poor whereas tesla has -- they cut prices earlier this year because they have good margins but they're looking and finding ways of taking revenue, if you will, from their competitors over time, which is going to be an advantage for them. >> yeah, finally to come back to china and the chinese market, which remains a very important one for tesla, is it your expectation, given your opinions of those chinese evs that they're going to be facing a much more difficult environment

in that country? >> well, yeah, i mean, listen, they already face a difficult environment. as phil said earlier, you know, tesla is still one of the major players there, but when you're competing right at the face of these very, very cost competitive automakers, you really have to up your game. and i think that's keeping them on their toes, but it's only going to get tougher for tesla, both in china and around the world, because, you know, all the established automakers, including the chinese, are bringing out evs that's why tesla's working so hard to build out their factory infrastructure, create these other revenue sources for their vehicles and their company, it's going to be very interesting to see how it plays out, but china's extremely competitive. that will only help tesla in their other markets as they learn how to compete there. >> mark, thank you >> thanks, david up next, the other tech trade. we'll look beyond the top seven at some of the under-the-radar

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the magnificent seven, the mega cap tech stocks that have driven so much of that rally this year. deirdre bosa is digging into that leadership for today's "tech check. dee? so much of it, right, david? that tech leadership has expanded to those seven stocks and have made up all of the gains in the s&p this year most of our audience knows that. what about the next seven? the next largest tech companies in the benchmark s&p you can see it has been narrow, yes, but is not all nvidia, tesla, the next biggest text company are chip makers, broadcom and amd, adobe and netflix. they're up more than 50% except for cisco and they're all riding the ai hype cycle. amd and broadcom are up after nvidia which is in a class of its own. they're seen as the next chip

winners of this early stage of generative ai. the picks and shovels, if you will there's salesforce, oracle and cisco. seeing renewed investor interest let's take salesforce. it has given a slew of activists reason to cheer and maybe back off climbing 60% this year in part thanks to its dedicated generative ai service called einstein then oracle has turned itself into a serious cloud player. cisco, another cisco name launching ai features across product lines. investors have pushed its market cap above $200 billion this year rounding out the next seven are adobe and netflix. adobe on its earnings call made the case to, quote, lead a new era of generative ai today it's already adding to huge gains of 50% this year. there is, guys, however, a huge

caveat the group, much like the original seven, largely still unproven in terms of actually monetizing the hype. aside from nvidia none of these companies boosted by the promise of this platform shift are clearly backing it up with hard revenue and profit except for nvidia, of course. there's always the chance a number of them fizzle and take the broader market with them so whether you want to look at seven names or 14, guys, it's tech leading the market still and on the promise of this generative ai shift. >> there's so much focus, dee, on the addition of market cap thanks to that ai hype, and i think not a lot of focus on who loses the market cap because of the ai hype. on oracle's call we heard them talk about customers continues to spend on ai but being more rational in their spend, cutting back in other areas. do you get a sense of sacrificing on in order to spend on ai? >> we talk about the winners but

what about the losers in the business models that will be eviscerated. maybe tech companies that are not able to pivot, entire industries chegg i think a month or two ago the stockplummeted on the idea generative ai will decimate that business the middle men in the advertising space, are they needed as much melissa, that's a good idea. next time we'll look at the losers >> i look forward to it. up next, wall street is buzzing about ryan cohen telling gamestop employees to act re like shareholders. we have those comments right after this ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic

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good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. rock stars. please! do you know what it takes to be a rock star? i've trashed hotel rooms in 43 countries. i was on the road since i was 16. i've done my share of bad things. also your share of bad things. we know that using workday for finance and hr makes you great at your job. but that don't make you a rock star. ted! ted! ted! oh ted in finance. you're a rock star! hey liz in hr? can you do this? unless you work with an actual rock star. you are a rock star! thank you! who's the new guy? hi, i'm ozwald. hello ozwald.

give it up for pam. pam, you are a rock- [silence] i wasn't going to say it. ♪♪ gamestop shares down this morning and about flat since ryan cohen was named chairman of the company wednesday, when the stock dropped by more than 20% he spoke out against american corporate culture during the annual shareholder meeting yesterday. take a listen. >> my responsibility is making sure gamestop is run by managers who treat company money like their own. in corporate america the people in charge, the professional

directors and management teams, are not aligned with shareholders they are always the recipient of stock grants however, they rarely purchase company shares with their own savings. there's a big difference between risk-free compensation for showing up and putting a meaningful amount of your own money at risk. as a result money is wasted, work is delegated, and a lot of time is spent managing short-term expectations and pandering to wall street i like people who roll up their sleeves and do real work >> speaking of ryan cohen, you can catch the documentary on the gamestop exec "the making of the meme king" on peacock and youtube. what do board members have in terms of, yes, they have a paycheck for serving on the board, but do they really have something invested in the company? >> yeah. that said, people can remember bed, bath and beyond and whatever the plan was for him or

what became no plan at all, he got out -- >> quickly >> other people were left holding the bag. >> we talked to one of his first investors at chewy he sees finally there's no way out, there's no path forward, he will quickly say that there are losses and move on maybe that's an example of that. but anyway, a pleasure being with you >> and you >> happy friday. "the halftime report" starts right now. welcome to "the halftime report." i am frank holland in for the judge, scott wapner. front and center this hour, is the rally for real the s&p 500 tries for its seventh straight day of gains. the nasdaq eyes its longest weekly win streak since march of 2019 our investment committee standing by to break this entire thing down joining us for the hour josh brown, karen firestone, steve weiss and here at post 9 jason snipe. but first let's take a quick look at the markets, mostly a flat day today looking at the dow basically flat same story for the s&p, the nasdaq fractionally lower. pretty close to the same level it's been for the last couple of