welcome to "power lunch," everybody. alongside kelly evans i'm tyler mathisen glad you could join us coming up, stocks down for the third straight day and we didn't even work on monday. momentum starting to reverse just a bit is this just a normal pause after a strong rally or is it perhaps something bigger like powell's comments today? plus that stretch of i-95 that was destroyed in a fire, it's going to reopen to traffic sooner than anyone expected. so how did this project come together so quickly while other

road construction projects, kelly, seem to be neverending? >> very much looking forward to that, tyler. let's check on the markets first where the dow is the outperformer but everyone's still in the red blue chips are down 20 the s&p's down 14. that's a third of a percent. the nasdaq trimming its declines somewhat but still down almost 1% and as tyler mentioned and as you can see here the steam is really coming out of a lot of the hot trades the biggest decliners list full of momentum names like palantir, c3 ai. still look at the gains so far this year. all of these names have doubled. c 3 ai has actually tripled. and zooming out to some bigger names cnbc now has a way to track all seven of those huge megacap names that have been dominating the market. we call it the magnificent seven. it's down 1 1/2% today but still up more than 80% so far this year. compare that with a 3% gain for the s&p equal weight index pretty lopsided, ty. >> all right, kelly, so is the tech rally finally running out of steam or is this just a bit of a healthy break for the

markets? let's bring in mike bailey, director of research with fbb capital partners along with our own michael san toeli, cnbc senior markets commentator mike bailey let me start with you. i know you don't like the idea of timing the market i'm not going to ask you to do that i'm not going to ask you to say this tech rally is over. but you do see what you describe as the possibility of some down side volatility this summer. why? >> absolutely. so looking at the tech rally we've seen year to date, pretty impressive you don't get these types of rallies very often the question is what's next? could we see this rally continue or are we at a bump in the road here or could we be at sort of a precipice with some down side? sort of putting all these pieces together we do see a bit of volatility coming up we do look at market sentiment, sort of investor behavior. the vix, or fear index is really plummeting to us that is a concern about investors getting complacent so

that we do have some worries there. a couple other pieces of the puzzle here. tech stocks had a great rally. they're just way more expensive now. we started the year at 20 times earnings now it's 30 times earnings that's a tough hell to climb i think if you need to see more excitement out of these names you need another ai, a twist on ai or perhaps finally are earnings going to come through for some of these companies and drive another leg of growth? some questions there but i think in general i would expect more volatility as opposed to less as we start to get through the summer >> mike santoli, thoughts, reactions? >> yeah, we certainly had a lot of the factors aligned coming into this week for at least a breather in the leaders of this market which has been the nasdaq 100. short-term trader sentiment gauge was at 93% bullish for the nasdaq 100 entering the year it just doesn't get much higher than that. i think the question is exactly what the choreography of such a pullback is going to look like and today is probably the ideal ordererly example of how things could play out

the nasdaq 100 down 1% the broader market flat. everything outside of tech is net positive jpmorgan tickling a new 52-week high that stock so i do think there's a way for it to kind of release some of the pressure yes, we've rebuilt the valuations of fair bid if i look at the nasdaq 100 forward price earnings ratio it peaked around 30 back in late 2021 it's back up to something like 27 so you know, maybe you have an optimistic call on how earnings forecasts will go. but that's still looking like it's pretty rich although i don't think this longer-term trend, which has just reasserted itself to the positive side, it's too early to say that it's ending >> so mike bailey, is your call for people to move to the sidelines? is fixed income more appealing small caps where do you think there's better opportunity >> stay diversified. i think in general if you've picked nvidia at the beginning of the year, you've had a great run, make sure you've got a diversified portfolio. that stock is a big chunk of your holdings you want to be

careful with that. is nvidia going to keep ripping the rest of the year probably not at the same pace the comment at the top was correct. we do want to be fully invested. we prefer to avoid market timing but just make sure you need to rebillion and see what else is out there. there are some great names in tech tech earnings are growing. you can look at -- you're seeing fantastic growth you want to participate there but just make sure you've got other stuff in staples, health care in case we hit a recession so you've got some offsets >> one of the names you mentioned in our briefing run is amazon tell us why you like it and put it in the context of this federal suit against amazon with regard to how it markets prime >> absolutely. certainly a lot of these mega cap tech names they're under a lot of scrutiny. there are investigations going on all the time. i'll start out on amazon looking

at the broader growth driver so e-commerce, that's really a big theme for us they overspend big-time. i think they created a ups on its own in two years they overspent on that now they're just rationalizing that you're going to see a lot of profit growth coming out of e-commerce advertising's still growing. look at cloud computing still growing. we like the business in general. stock is trading at a relatively low p/e for amazon and the stock's actually underperformed the broader market for the last fine years we still see a catch-up trade. that's sort of the big picture view now let's take a quick look at this ftc i haven't looked at all the details yet. i'm sure lots more will start to come out it's hard to say could this be a significant change for the company who snows in looking at other big investigations, generally the companies have been able to continue their core business model despite some of these investigation zblpz pair of mikes. thank you very much. bailey, santoli, we appreciate it >> now to some new comments from atlanta fed president raphael

bostic let's bring steve liesman in for those details. hi, steve. >> actually, two fed presidents weighing in with a more dovish outlook on rate hikes after testimony by jay powell suggested the fed may raise interest rates two more times. bostick saying in an essay he just released he's putting himself firmly in the wait and see camp when it comes to raising interest rates he said the fed should let rate hikes work through the economy, see if they bring down inflation before deciding what to do next. good reason he said to expect policy tightening to be more effective in coming months the real effects of tightening, quote, are only just beginning to take hold chicago fed president austan goolsbee, while powell was speaking, saying he had not decided what to do in july but that it was reasonable for the fed to be on a reconnaissance mission now. he agreed with bostic that the fed had raised rates a lot and those rate hikes needed some time to play out in the economy. he indicated he wanted several more months of data before deciding what to do next all of that seems to contrast at least somewhat with powell who suggested strongly two more rate

hiekds is a pretty good bet if the economy performs as expected among those who are sure they want to hike and those who want to wait and see if there's more data before making that call guys >> i guess we kind of know now, don't we, steve, where the chairman fits in that spectrum of votes that was taken last week about how many more rate hikes were expectable. >> when it comes to those forecasts, it's a very good point, tyler we didn't really know. he was kind of speaking kind of like well, the committee is saying these things. kind of put himself in that camp among those who think two rate hikes are a pretty good guess is the exact terms he used if the economy performs as expected >> steve, thanks very much it was just a week ago we were together down in d.c fed chair jay powell sounding hawkish in his comments to a senate committee today let's get reaction from chicago, where rick santelli is talking to traders hey, rick. >> hi, tyler

indeed and before we get to the traders i think we should sum up how the markets responded to jay powell in front of the house financial services committee look at a two-day chart of two-year very sensitive to fed policy pretty much sideways not a huge effect by our chairman as he was answering q&a. you look at july fed fund futures, they start on the day that we had cpi. the next day we did not see a rate hike. and you see it's basically been going sideways so percentages, 70-plus percent they're going to hike a quarter in july. but a little less than 20 for september. the dollar index is where all the action was look at what happened at 10:00 eastern. it did a swan acapulco dive right off the charts let's go see if we can find dave i know you're busy, there's a lot of action here but quickly let's talk about jay powell i didn't see the percentages change -- >> oh, yeah. >> -- but what do you think the markets heard when he was talking today in front of the house financial services committee? >> i think they heard he was

just buying time he could have raised rates, chose not to just buying time it would have probably been a better idea if he put it out there oh, yeah, we're probably going to raise rates in the future, we're not done, this is just a temporary pause but i don't know why he didn't so -- >> you know what, actually that's the best answer to a question that everybody's asking >> yeah, i'm a smart guy >> since the 14th. he sounds like he wanted to raise rates. they all voted unanimously not to raise rates it sounded like they had a little bit of non-raising rate remorse. >> yeah. a little bit -- that's just going to sit back and not do anything for a little bit, see how things digest. >> and i agree, he's buying time so let's play a game here. let's say we know one year from today inflation's going to be at 2% the inflation target. what should the fed do between now and then >> probably nothing. >> they shouldn't do anything at all? probably nothing i almost feel like we should stop there and call it a day because to me that's the only

correct answer higher for longer fits right in with the logic of that >> exactly >> that's why the markets -- we had larry lindsay on there's no better economist in the whole world than larry lindsay. and his comment was the markets are kind of like a 15-year-old, an adolescent. they're having a goodtime of i all but maybe they're going to need to be reprimanded and the way i look at it, maybe they have it right >> down through time they always tend to go too much too fast they're either too slow to do anything or they go too far too fast and maybe they just need to come down and do nothing for a bit. >> david, it's always fun to talk to you. >> my man. >> thank you, buddy. kelly, tyler back to you. >> not enough energy there not enough energy there, guys. thank you, fellas. >> great stuff coming up, dropbox dropping in to the ai race the company announcing a new search technology. we'll speak to the ceo in tech check about that next. plus, infrastructure has a speed limit in this country.

bills funding construction, it all takes a lot of time and money thanks to red tape yet the i-95 repair hit seemingly no speed bumps we're asking why what lessons can be learned. and as we head to break, a quick power check. on the plus side dollar tree up 4% the company's target, $10 a share in earnings for fiscal 2026 on the negative side, amd down 4 1/2% taking a breather alongside other chip names like nvidia, intel and qualcomm "power lunch" will be rit ba ckgh this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight. i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust.

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welcome back time for today's tech check. dropbox unveiling two new ai-powered products today including a universal search bar called dash that connects major platforms like google workspace and microsoft outlook. shares are fractionally lower, though here with more let's get to deirdre bosa out in san francisco joined by dropbox ceo drew houston hello to both of you. >> hello, kelly. thank you. and drew, thanks so much for being with us. >> thanks for having me. >> before i get to the product news i want to get a status on the business overall a few months ago you made that difficult decision to lay off about 500 employees. you cited slowing growth and the urgency to be at, quote, the forefront of the ai era. how are you doing on both of those fronts >> yeah, it was a difficult decision but you know, like a lot of companies we're responding to

the macro environment and then also investing more in the future investing in early product development and ai and some of the launches that we're announcing today >> and how are you on the growth side has that helped yet? or are you still waiting for that to trickle through? >> the launch of these products are just hitting today we're really excited about them and think it's a huge opportunity. >> let's talk about them i want to talk about the more major innovation it's something called universal personal search. explain to our audience what that means, why they might need it >> sure. so one of the products we're launching today is dropbox dash, which is ai-powered universal search and the idea behind this is -- or it started with this idea why do we live in a world where it's easier to search all of human knowledge with a google search than your company's knowledge or even your own stuff? and dropbox has helped our customers organize your files since the beginning. but so much of work is now in our browsers so that's where dropbox dash comes in it's the universal search bar. so y search your google

docs and your air tables and your slack and salesforce and everything in between from one place instead of having to go to lots of different boxes. >> so it's like a work tool to sort through all of that stuff that's coming in through different applications so others have tried this in the past and i wonder why is dropbox in a better position to pull this off than, say, a microsoft or a google why now? >> sure. well, first is just the magnitude of the problem our work environments are so much more complicated. we use so many different tools and we're not -- we're rarel one ecosystem, right we're using things from microsoft and google and all these other companies. and we kind of started out as frustrated end users it's impossible to keep my stuff organized. so a big advantage dropbox has is we're platform agnostic we support every platform just as we have since the beginning second it's a natural evolution of what we do for our customers. millions of people millions of businesses already trust dropbox with their most important information. and so going from files to all of your cloud stuff is a natural evolution. and that trust and privacy piece is really important. everybody's excited about ai and

what it can do everybody's concerned about the negative impacts so in the brave new ai world it's more important than ever to have a service you can trust and that's what dropbox can provide. >> in this brave new ai world there's a lot of products, not as much monetization some analysts have pointed to your pace of monetization, paid users on dropbox do you expect this to be a major profitability lever for you guys how do you think that's going to impact the monetization of dropbox premium? >> we think this is just a huge unsolved problem unlike with file sync and share where there's a bunch of different -- or there's a bunch of different competitors in the world of universal search there's really no one solving this problem that's why -- but it's something we all experience. right? how many times have we been like i know there's a doc there, i was looking at it an hour ago, but i can't remember if someone sent it to me by slack or e-mail or whatever. there's a billion knowledge workers with this problem and i know no one who has it solved until now.

>> we were talking earlier about analyst notes. i really need this sort through all of those that i get through every morning. >> yeah, we all do >> last question on the state of san francisco. so dropbox early on in the pandemic, you guys got rid of your headquarters. since then a lot of companies have actually been leaving san francisco. there's westfield giving up its mall recently that news. we've got the highest vacancy rate of any large american city. you're still here. a lot of folks working on ai are still here or they're coming back why? why san francisco? >> well, san francisco's been a great home for us since the beginning. and it's still home to a lot of the innovation and when you think about all the great things happening in ai a lot of them are still happening within a couple miles of where we're sitting right now. and i think it speaks to -- when we think about internet companies we talk about network effects and just all the benefits of when you have great companies, great talent, great schools all in one place that's not changing. but for sure, san francisco like a lot of cities has its challenges and these humanitarian crises. and i think everyone wants it to

be better. >> well, i'm glad you're able to come visit us in person. thanks so much for being with us drew houston, ceo of dropbox tyler, i'll hand it back over to you. >> all right, deirdre, thank you very much. and thanks to you are o'guest as well up next, an esg-op fight anyone with a 401(k) needs their retirement fund to grow as large as possible. republicans say esg interferes with that goal we'll explain how they are targeting it, next plus, details on how worsening weather patterns could threaten to drive up already high prices for soft commodities "power lunch" will be right back ♪ ♪ 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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we got this. we got this. we got this. life is for living. we got this. let's partner for all of it. edward jones welcome back, everybody. republicans ramping up their anti-esg push with a measure that would prohibit 401(k)s from investing in funds related to that investment philosophy tricky here with more is emily wilkins from washington. hi, emily. >> hello well, republicans are continuing to attack esg funds, raising concerns that investors could be unknowingly making less money if

they are invested in environmental, social and government priorities. congressman andy barr rolled out legislation today to curb the use of esg investing in retirement funds and his bill would also ensure that retail investors know when their funds are in esg and what that could be costing them. i spoke with congressman barr in an exclusive interview he said that many americans might be blindsided. >> environmental, social and governance investing has become a cancer and a fraud within our capital markets. steering retail investors sometimes unwittingly into a lower-performing, less diversified and higher fee funds. >> barr and other lawmakers are concerned that few americans know how esg really impacts their portfolio. a recent gallup poll showed that 40% of americans are not familiar with esg investing while only 11% were. that's roughly the same as a similar poll done two years ago.

the legislation wouldn't ban investments in esg but it would require advisers to show investors the difference in fees and profits between an esg-focused investment and a similar index fund and it would also require retirement funds to focus only on maximizing profits. you can expect to hear a lot more on esgs from house republicans who plan to focus on the issue in july with hearings and a planned package of bills addressing the investments for more on this story you can check out cnbc.com >> a cancer and a fraud. that is -- them's fighting words, emily i mean, it seems like a very tricky needle to thread here to decide what is an esg fund there are different gradations of it. some do better than the indexes. some do worse. >> yeah. when you do look at various reports out there on esg funding and how it stacks up, you do find a variety of results. you find that sometimes esg

funds do better. sometimes they do worse. sometimes they do about the same i think what republicans are really trying to do here are make sure that investors are simply cognizant where their funds are going and what that could mean like congressman barr said, this does not prevent anyone from investing in esg funds they still have the freedom to do that. it's simply trying to get the investors a little bit more information on exactly what they're getting into >> i mean, it's interesting. it goes back to the idea, if the goal of the bill -- or whatever the push is is to make sure that you get maximum profits, then you're walking down a path probably to requiring retirement funds to invest solely in index funds, which have the lowest fees and generally outperform actively managed funds that's just my little ditorial emily, welcome good to have you with us >> thank you very much >> you bet >> investing in commodities often requires a degree in meteorology. weather has a huge impact, especially on food prices. pippa stevens is closely watching -- i was going to say is a meteorologist

>> what continent you do >> unfortunately, i'm not a meteorologist but i will do my best here. basically, what we've seen is soft commodities like sugar, coffee and coco are hovering around multiyear highs and now the arrival of el nino could rock these markets even more prices have been rising for several months in anticipation of the coming weather shift as well as some supply disruptions. cocoa futures are around their highest in more than seven years while sugar and robusta coffee are at levels last seen a decade ago. at its simplest el nino is when trade winds weaken and warm weather is pushed east toward the west coast of the americas it can have significant impacts on global weather including heavy rainfall or droughts or it can be almost a non-event. and that's where the challenge comes in it is very difficult to predict. but for sugar, for example, the fear is that el nino will impact the two major producers, bringing flooding to brazil and lower rainfall to india. and this of course comes as food

inflation has been a major sticking point and a burden for really around the world. >> just as egds ggs go down my e two staples sugar and coffee go up that's not good. >> the robusta is the cheaper and kind of the lower quality -- i'm a robusta person >> you're a robusta woman. >> it's the instant coffee the more premium one is not rising quite as much >> i'm safe. >> you should be in the clear. >> i really want to drill down on why you're a robusta person but just kind of a comment about europe where their inflation, the uk again much worse. food a big piece of that we see corn and wheat and those kinds of things. ukraine, is that weather -- do we know? it's hard to disentangle it seems. >> it all comes back to weather and that is the driving force for the majority of these crops. but with ukraine specifically that deal is up for discussion once again on july 17th and of course they are the bread basket and a major exporter of wheat and so far they've been able to keep doing that after the u.n. and turkey brokered that deal. but that could start to shift in july with putin already signaling that he may renege on

that so that could be another wild card with a lot of wild cards already here >> do we ever grow coffee beans here it's not warm enough yet >> i don't think -- i don't think there's as much coffee grown in the u.s. if any >> give it 20 years. pippa, thank you let's get to contessa brewer for the cnbc news update contessa well, kelly, 1 2 1/2 years n prison that's the sentence just handed down for the january 6th rioter convicted of driving a stun gun into the neck of a d.c. police officer daniel d.j. rodriguez pled guilty to charges against him in february including inflicting bodily injury on officers using a deadly or dangerous weapon authorities say rodriguez attacked officer michael fanone in the capitol's lower west tunnel and then later bragged about it in a chat group on the telegram platform. miami police are investigating dolphins wide receiver tyreek hill for an alleged assault and battery sunday but they're being tight-lipped about any other details involved there. the dolphins, though, released a

statement saying they're aware of the situation congressional leaders are planning to unveil today the official design for a new stamp honoring the late civil rights leader and congressman john lewis. the preliminary stamp design released last december features a 2013 photograph of the congressman. lewis of course died in 2020 he championed in his life peaceful protest and was sometimes called the conscience of congress. kelly? >> i love stamps >> and that looked like a very nice handsome portrait of the congressman. >> indeed. contessa, thanks >> sure. ahead on "power lunch," much of america's infrastructure needs updating, replacing or at least repair the problem, it costs a lot of money and it takes way too long. except this time in the case of i-95 how were they able to fix the overpass collapse so quickly? plus the war of words continues between the u.s. and china after a seemingly successful meeting between blinken and xi biden calling china's leader a dictator.

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welcome back to "power lunch," everybody. intel the worst performer on the dow today. let's get to kristina partsinevelos on the nasdaq to explain what's driving intel lower. kristina >> though intel announced it would sell 20% of its austrian chip making business to bing capital the stock reacted negatively to its annual foundry meeting hosted literally a few hours ago. you can see after 12:00 p.m. that's when the stock really started to fall. the meeting focused on its internal foundry model this is a segment of the company that would have its own profit and loss statement and pretty much like an arm's length relationship with the device business that means intel's foundry business would not only charge third party customers to make their chips but also treat intel as a customer. all in an attempt to become the second biggest foundry in the world of course after tmc. today, though, intel said they will sign up their first foundry customer by this year, but we didn't get any names investors not loving that as well as the time it will take intel to ramp up utilization rates, cut costs and sign up new customers. it's a step in the right direction but it seems to not be

happening fast enough for all these investors. guys >> and never fast enough thank you very much, kristina. speaking of fast enough, traffic over interstate 95 is expected to resume this weekend less than two weeks after that tanker fire and structural collapse forced a shutdown of northeast pennsylvania pennsylvania governor josh shapiro said crews have worked around the clock to speed up a rebuild that was initially scheduled o'take months. last week pennsylvania senators casey and fetterman along with congressman boyle announced $3 million in emergency funding for a temporary fix. here now with more on how it got done so quickly, representative brendan boyle, the democrat from pennsylvania he represents the district where the collapse took place. congressman, welcome >> great to be with you. >> i mean, tell me with the most granularity possible, literally how did this happen? >> yeah. so it's amazing to think back that we were only a couple weeks from that early saturday morning crash to where we are now.

where literally as early as this weekend we could be reopening three of the four lanes in each direction, three north and three south, which is about 75% of what we did have it's been an all hands on deck type of operation. we've literally had workers there 24/7, which obviously is expensive when you're paying for that sort of overtime. but the reality is 160,000 vehicles a day typically take this stretch of i-95 we're talking about the most densely populated metro or megopolis in the country when you include new york and new jersey just a little ways away so given the urgency of this, we put everything into it to make sure this would happen and reopen at least mostly reopen as soon as possible >> what is going -- what is going in right now, will that be the permanent structure or is that a placeholder while more permanent work is done

>> yeah, so let me explain essentially, there are two rebuilds going on. first, what is enabling this to get the roadway back online so quickly is a material called foam to glass aggregate. that is what is being filled in. and so what was an overpass on i-95 has essentially now become a wall that is paved over and you're able to have highway lanes there. the permanent structure will be built around that. so right to the east and right to the west. the permanent structure, once that is complete on the outside, the foam-glass aggregate will be drained out and then the inside permanent lanes will be constructed. it's a little easier to describe if i'm able to, you know, show you -- >> show on on a map. i get it but it's fascinating is the army corps of engineers involved here? army corps involved at all >> no.

not the army corps of engineers. we've had i feel like almost everyone involved. but army corps of engineers tend to be more used when you're talking about nautical projects. so they weren't involved in this >> i'm surprised when they say $3 million was approved in emergency relief, $3 million seems like a very small amount for the scale of this project. how useful is federal funding here how useful -- like you said, this is an expensive project did money need to come in to support it are those bills going to last long after this is quickly completed? >> because of the emergency declaration that was signed and announced by the white house, 100% of the bills are paid for the first 90 days. and then 90% thereafter. this will certainly cost more than $3 million. that was just kind of the opening hours or days of the project. but you know, early that sunday morning when this happened my first call was to the white house. and president biden called me

back shortly after that. he specifically said and personally said to me, this to him was the single most important infrastructure project in the nation, getting 95 back up to the condition that it will be in this weekend, and which it's operable again. so really just a great team effort from the white house to all of us locally. >> what can we learn -- just to share some of the details, you know, 25 to 30 million dollars is the estimate. you had good weather, which helped, among other factors in kind of working quickly. was red tape cleared and is the message here that when something really important needs to get done it can get done very quickly and wow, that's so amazing for america? or is the message that there needs to be some lessoned learned from this and applied to making sure that other areas that need repair are able to do that more quickly? >> so i think there are a couple lessons you can draw first is keep in mind that whenever there's an accident such as this red tape is already clear. that's part of federal legislation that has actually

existed for quite some time. the second thing, though, is for those who believe that government can't do things or that we are somehow inevitably doomed to long delays and nothing getting done, we were able to prove that that's nonsense, that when we roll up our sleeves and all work together we're able to meet an important task so i hope that with this being really the remarkable success that it is, i hope we're able to apply it to future projects. certainly when we talk about permanent constructions as opposed to reconstructions we need to have a streamlined permitting process, other reforms as well. but what it shows is when we put our minds to it we can get things done quickly. >> nice lesson >> yeah, it is from your lips to a lot of engineers' ears. right? >> congressman, thanks for all your effort on that and for explaining it to us. we appreciate it >> thank you >> representative brendan boyle, pennsylvania >> all righty. coming up, u.s. and china

tensions reigniting after what seemed like some progress over the past weekend we've got those details next and as we head to a break, june is pride month and cnbc celebrates all month long, sharing stories of corporate leaders. here is steven tristan young, poshmark's cmo >> for me as an lgbtq who recently went through a surrogacy process i'm thankful me and my partner now have two twins. i'm shocked at the number of people who felt uncomfortable asking me questions about the process. and for me i welcome the opportunity to share with them about the struggles, the costs, the emotional journey that we went through as partners and how we got there being able to answer those questions really felt like i was creating a bridge for people to feel comfortable to understand more about the struggles that we go through tom? could be danny.

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so you can rise from pain like a pro. icy hot pro. welcome back after what seemed like a positive visit between secretary of state blinken and the chinese president xi china now lashing out at the u.s. once again after president biden called the country's leader a dictator. eamon javers here to discuss >> this is a fascinating moment

because the president was speaking before a group of fund-raisers these are donors he's comfortable in those settings i've been in those rooms where presidents get to meet the wealthy and hobnob with them there's no camera in front of them there's a press pool there but they're off to the side behind the curtain and it kind of gives this feeling of intd masih where presidents can sometimes say a little bit more than they might have wanted to say >> think of mitt romney a few years back in the middle of the campaign >> exactly that could have been what happened here. and you see an immediate reaction from the chinese side saying hey, wait a second, that's uncalled for. but the president clearly expressing what he really thinks behind the scenes. and there's been a sea change in washington, d.c. in terms of the approach to china going back 20 years the approach was engage, let's do trade, let's have a positive economic relationship now, though, a lot of officials that i've been talking to are sort of reevaluating that whole approach was that the right call for the global economy and for american democracy we happen to have a documentary tonight looking at chinese

espionage against american companies. i've got an excerpt for you to play right now because i want you to see some of these officials expressing in their own words how they've sort of reevaluated that relationship. take a look. >> today the world we live in, the world we've all benefited from, was a world framed by an american-led order now if they are dominant in these fields in the 21st century the entire world will be responding to chinese standards, which is leverage in and of itself over geopolitics, over decisions that policy makers can make, over society >> the old notion of 20 years ago what national security was, who's got the most planes, tanks, ships and guns, is no longer the case. who has the most advanced wireless communications. who controls overhead satellites who is going to make the most advances in synthetic biology or controls next generation energy. that is all within the gambit now of national security >> that's senator mark warner there. he's the chairman of the senate intelligence committee and senator marco rubio the ranking member our documentary premiering tonight at 10:00 p.m

you'll hear more from them in the documentary. they wanted to do that interview together we talked to them for a long time about setting that int stru up both of those vies guys wanted o send a message by sitting shoulder to shoulder to say this is a bipartisan issue. >> the alignment between the parties is not perfect on anything and certainly not on china. but there is generally more of a shoulder to shoulder feeling on the approach to china these days >> you absolutely see that and this reevaluation, mark warner in another segment of the documentary told me he was on the wrong side of this argument, he feels, 20 years ago he felt like if we do business with china then we'll make them more like us, there will be a middle class, there will be a culture of entrepreneurism, there will be freedom of speech, democracy will bloom he says now i've realized that was the wrong approach and a lot of officials, u.s. intelligence officials say they are concerned that we thought doing business with china would make them more like us and what it's doing is making us maybe a little bit more like them in terms of freedom of speech issues and other things.

so some real concerns in washington around this relationship and you can see that the president's giving voice to that and in the reaction on the republican side to the president's comments today you see a lot of tentative reactions to it. normally, you know, just ping-pong the other guy's statement down you're not seeing that as much today on that biden comment. >> interesting and we'll be watching tonight, 10:00 eastern. thank you, eamon >> got the plug in thank you. >> still to come, peloton down 7% today and it's off the lows on a downgrade over at wolff they're saying the path to sustained growth and profitability remains unclear. we'll tre ataminhradth ne tee stock lunch after this of new fd 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.

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today's three-stock lunch. our first item is fedex reporting mixed results. the stock is down about 2% presidentand cio of jewel financial, quinn, great to see you. what would you do with fedex >> we like fedex here. it's not all that exciting so it's not a high momentum trade by any stretch it's not surprising that fedex

is the covid overhang. last few quarters have been lackluster they had a boom during that time period they're settling in and trading 12 times forward earnings. earnings are set to rebound last year have a really healthy balance sheet. i like the stock i think we're a buyer on this, but it's not that exciting >> let's talk about the motor home maker winnebago a revenue of $901 million, estimate was 977 compared to last year that number was 1.5 billion for the same period. are americans losing their wa wanderlust >> they're not losing that wandw wa wanderlust even though you would think

winnebago was an exciting story, it is for us the reaction is muted in the stock today. certainly not down as much as one would expect with those numbers, but this is a stock and a company that, for the industry, has an impeccable balance sheet. $200 million in cash and we think this is just kind of a little bit -- as well as fedex, a little bit of overhang from covid, everybody buying these vehicles we think this is a great company and, as trader, it's presenting great risk/reward. if you wanted to trade this at 54, we like this here. >> at 63 right now drum roll please that brings us to peloton. nearly a 10% move. wolf research downgrading it saying profitability remains

unclear. the stock is below $8 at last check. would you pick it up here? >> no, absolutely not. i really feel bad for this company. i mean, it seems like every time they turn around they'll getting hit with something the recall, i believe, a few months ago was the last blow this is a company, though, when you analyze the fundamentals they have a very difficult road ahead, tremendous amount of debt, just an awful balance sheet and they're losing money it becomes a really difficult prospect to get behind you may look at this and go, oh, this stock is cheap at $7. fundamentally we would not say this is cheap at all i think traders need to stay away until there's a real turn in the business and the business model and it flows through the financials this is a no touch for us. >> you ever ride the bike? >> actually i don't. i have enjoyed cycling a time or

two. i can honestly say that. i've never been on a peloton. >> you're saying this is going to be like a hit and hills ride for peloton. a lot of hills and a lot of hits >> i hope they turn it around. it would be a great story to turn this around it was a darling of covid. now you just don't touch it. >> now it's the ugly duckling. >> maybe if someone -- you should be in their ad campaign talk about turning the stock around the ftc is suing amazon and other key stories you should now about next i'm an investor...in invesco qqq, a fund that gives me access to...

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welcome back just two minutes left in the show we've got stories to rip through. >> we're going to use this time wisely. bitcoin hit 30,000 today for the first time since april black rock giving it a boost stocks in the crypto universe seeing some nice gains today. >> i would love to know if it's up for the year. >> i don't know if it is up for the year. >> 81% i thought it was like in the 17,000 neighborhood. it's back. ftc suing amazon saying it used manipulative tactics to enroll users in prime.

ftc chair lena khan says amazon tricked and trapped people in to recurring subscriptions which could only be canceled with a four-page, 16-click cancellation process. amazon says the claims are false and the company was in talks with the commission staff to discuss. i use it a lot i never tried to cancel it. >> i did cancel it for a world didn't seem hard the stock moved lower. one thing fueling the tech rally has been layoffs add that to work from home and we're seeing a lot of empty office space in silicon valley google and meta have closed locations. >> well, you have to figure on that finally, novo suing clinics

sa saying they're selling compounded versions of ozempic >> everyone is trying to get their hands on them. i'll be away for a few days. >> i'll miss you. >> i'll be back. >> "closing bell" starts right now. welcome to "closing bell." i'm scott wapner at the new york stock exchange we have a big interview coming up i'll go one-on-one with eric johnson, one of the biggest bears on the street. he says stocks are going lower we look forward to that conversation. we begin with the head hawk on the hill. fed chair jay powell saying two more rate hikes are likely stocks are trying to