welcome to another hour of "squawk on the street," live on the floor of the new york stock exchange, i'm carl quintanilla with sara eisen, setting the agenda, famed economist, david rosenberg, why he says investors are coming around to the bubble that's been created and the one investment he says will give you returns and let you sleep at night. >> plus, new brand ceo, chris peterson, first interview since taking the reins, the stock is down 40% can he turn it around and. norfolk southern's ceo, the company continues to recover four months after the east palestine train derailment and costs rise and volumes drop. but first, taking a look at

the markets right now, we are under a little pressure, down more than .5%, nasdaq double that, about 1% right now the take for the nasdaq, it is set to break its eight-week win streak and seeing its worst week since april. we're starting to see maybe some giveback on the a.i. trade, big cap tech, although that has been the center of the universe so far and it still remains for the month, month to date gains hold, and year to date gains hold as well. >> macro data has been a big player as well pmis miss in europe, pmis missed in japan, oil can't hold 70. >> copper's down. >> yeah, copper's down ten-year, pretty much the lows for the month. >> it's confusing. it's all bond friendly today, and you're seeing a bid for bonds, and yields are a little bit lower on the recession story and the weak economy story but, the other part of the week has been central banks as being hawkish and continuing to fight

inflation and raising rates more than expected and signaling more rate hikes are to come which is, of course, negative. we're in a weird type of period finding out how fast inflation has come down. >> it's funny, recessions tend to come right when people stop trying to call them, as people get exhausted. >> people are still trying to call them. where is the recession every day. the story so far this year, though, has been tech gains, but is the rally losing steam? bank of america seeing 2 billion in outflows this week, the biggest dip in ten weeks, semis are seeing their worst week since february, and so-called magnificent seven is seeing losses our next guest thinks this may mean investors are coming around to the idea that we could be facing a bubble that's about to pop. joining us now is rosenberg research founder, and president david rosenberg, i don't know, david, you've been saying it for a while, and you want to miss the big run-up we've seen so far this year in the nasdaq.

>> all right, yeah, absolutely you know, we all know the story with the nasdaq, and the stock market, that if you're an index investor, and willing to take on that concentration risk, you know, yeah, you missed out on a huge rally but, you know, it's interesting, nobody talks about what happened last year in the context of the big spike you've had in these names after what was a real meat grinder in 2022. big picture is this, sara, the s&p, through all the peaks and valleys, is at the same level today that it was two years ago. so, you really had two years of nothing in the broad market, even with the big rally this year, you've had nothing for two years, except for intense volatility. >> but, that can be -- i mean, that's very positive, isn't it, given that rates have risen so much over that period?

>> well, why is that positive? because rates have risen what's it telling you. >> it's resilient. >> well, it's telling you that it could be resilient, but so what you haven't made money in the stock market outside of the dividend in two years. and then you have to do the math, like are you a momentum chaser or do you respect valuations two years ago when the s&p was at this level, real interest rates were negative 170 basis points, today, real rates are 150 basis points, with pretty well the same valuation. so, the answer to your question before, if you don't want to call it a bubble, i'm not going to say -- i mean, there's parts of the market that are in a bubble, but are you going to tell me that a 19 ford multiple on the s&p 500, which is a 5.2% earnings yield is what you'd want to buy, sara, when you

think of a treasury bill at a premium to that? so, i would say that sometimes, i guess, being of a rational mind could impede your performance over a few months. but, you're actually getting paid not to be in the broad indices right now when you look at where relative interest rates are, risk-free rates and in the corporate bond market, a more superior part of the capital structure. >> i wonder, though, david, how you're considering sentiment, and positioning here, there's a bunch of managers who were way behind the year's more than half over, isn't it likely that if they get any chance, any dip, they are going to snap it up >> could well be the question is, what sort of depth are we going to get, and then the question is, it comes back to my response to sierra, do you or do you not respect valuations so, at any moment in time, carl, yeah, we can talk about fun flows and talk about market positioning and sentiment, but in the final analysis what is --

what are you willing to pay as an investor for the future of expected earnings stream and how do you benchmark that against alternatives because, what the fed has done these past, say, you know 12 to 18 months is they've taken the "n" out of tina. so there is an alternative so, i know that, you know, you'll sit there and say, oh, you missed out this big rally in the stock market but there are alternatives out there that actually offer superior characteristics on risk-adjusted returns. so, you know, i'll get the comment back from you folks, well look at the growth -- over occurrence you have to adjust for the risk. and the major point i'm making is that no matter about buying the dip in the stock market or not, the alternatives out there in the fixed income space, it's a cornucopia that has not been here for years, and so i would say that you might want to shift your attention my opically from

the stock market to what the credit markets are offering you right now. >> i also should say that you've had some really good calls when it comes to japan, you've been bullish on for a while, that's been an amazing story this year, india as well, a lot of very attractive for foreign investors, david, but when it comes to the u.s. it does come down to the fundamentals and this notion of whether you think we've been heading into a recession for a long time, and you think the earnings picture is deteriorating, at the same time i talk to people, you know, that think that it's improving janet yellen today, the treasury secretary said the risk of recession has diminished because of what's happening in the labor market, and inflation starting to come down. >> well, sara, you make me laugh a little bit i mean, janet yellen's a politician, right? i would probably believe her. >> she's an economist too. >> okay, okay, larry kudlow is an economist too, a spokesperson for the white house, never an economic data point.

>> i get your point, it's fair. >> but the point is, look, janet yellen comes out and says look at the labor market. the labor market is a lagging indicator. if you're going to make an economic projection why would you focus on the labor market? and then she says well, inflation's coming down. well, sara, tell me a recession where inflation didn't come down i sort of saw the quotes, and i rolled my eyes i haven't been calling -- >> but it's not just her, inflation expectations in the market have actually stabilized, and risen as the soft landing scenario still get traction here, as we do keep getting, and i know labor reports are lagging, david, but also -- it also highlights the strength of the consumer right now, because they have jobs, and they are getting paid. >> sara, i know the narrative, okay, so, yeah, the consumer has hung on like the energizer bunny because of the lagged impact of the prior fiscal stimulus. by the way, this is where i got it wrong, was history chose that households typically spend 40%

of the stimulus checks this time they spent all of it and that energizer bunny is about to run out so that certainly gave an extra lifeline to the consumer you're talking about the labor market, you have to focus on the leading indicators, what are the only two labor market components in the conference boards leading economic index, and there's only two, jobless claims, okay, jobless claims have hooked up, forward-moving average is up like 65,000 from the low sara, i'm telling you, jobless claims are following the same pattern they were heading into the 2001 recession, and the same pattern heading into the recession that started december of '07, same pattern of jobless claims, leading indicator, the other leading indicator is the workweek and, you know, so you didn't ask janet yellen if you had the chance, tell us about the workweek as one of the leading indicators, and companies have cut hours work to the lowest level since the spring of 2020,

since the pandemic started and companies always do that, they cut the hours first, the bodies next. i would suggest that what's more important for all of us is not what are the labor market indicators doing today, it's not about what are the headlines saying today what will it look like three, six and twelve months from now that's a different labor market, and the leading indicators are telling you we're going to be going into a contraction in employment, and that will be the ah-ha moment for the fed, when people realize, of course, everybody waits for employment to go down before they realize we're in a recession and even then employment goes down and they'll say it's a blip, it's not a trend, and by the time it becomes a trend people realize we're not in a soft landing, we're actually in a recession. the one thing i'lljust say if have the time we have had back-to-back declines in real gross domestic income and we're

all basically always focused on real gdp, but real gdi has declined two quarters in a row, that's only happened in the past in the context of an outright official defined recession the reason why it takes so long to recur the recessions is because of the revisions, what if everything you're talking about right now, is going to get revised away in six or nine months then we'll get something totally different. if the gdi numbers are right, it means a lot of the wage numbers and employment numbers that we think is providing this false blow of resilience is actually something totally different. >> always good to have you on to debate it. i know a lot of people agree with you so, david, thank you very much for the time today. >> enjoy the weekend. >> you too, david rosenberg. the ceo of newell brands is with us. on the pulse of the consumer, first interview since taking the job, stocks trading at lows not

seen since '09 can they turn it around? and speaking of the consumer, citigroup says one of its best ideas is to sell target student loans is a big part of the call "squawk on the strt"ilee wl return, dive into that in a moment, down 200 now on the dow. losing a bit of steam here

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yankee candle, sharpie, rubbermaid, graco, a few names

in newell brands our next guest took over the company as ceo recently and he joins us in his first interview in the new role for a check on what to expect for consumer spending this summer joining me is newell brands ceo chris patterson, great to have you, thank you for joining us. >> thank you for having me, sara. >> so, brand new ceo, the stock chart is ugly. how are you going to convince investors you're turning this company around >> the stock chart and ugly and none of us are happy with the stock chart. we believe we've got a very strong plan to get the company turned around. we spent the last couple of months with the leadership team doing a full scale capability assessment of the company, and developing a new turnaround strategy we just announced the new turnaround strategy two weeks ago, and are very excited about the potential ahead of us to get the company back to winning in the marketplace, back to revenue growth, margin expansion, and

strong cash flow generation. >> so, how is it going to work because you have a lot of brands, some of them are good, and as a lot of these consumer conglomerates are, some of them not contributing. >> let me give you a couple of the elements of the strategy so, one of the elements, as you mentioned, is to focus on the areas of the company that have the biggest opportunity. so if we look at the company's brand portfolio, we sell 80 brands across the company but at a of those 80 brands represent 90% of the sales and profits we're focusing on the 25 brands and what's important about those 25 brands is that over two-thirds of them are market leaders in their categories and we think by distorting our resources in terms of innovation, advertising, and talent against those top brands we can drive a more meaningful impact we've also identified areas in the company where we need to make capability improvements

and so, we're investing in capability improvements, and things like understanding consumer unmet wants and needs, brand building, innovation, and go to market, which we believe can drive the company back to topline growth at the same time, we're changing the operating model of the company largely on the supply chain to centralize the supply chain so that we drive scale across the portfolio, and create a better value for consumers as we come to market with leading brands. >> that's interesting. are you trying to undo, say, a legacy, or many, many years of sort of bolt on acquisitions where things just got a little bit too complicated? >> that's exactly right. this company was built through a series of acquisitions that were never really integrated. as a result, the company is a large company that really hasn't been operating with scale. we've made a lot of progress over the last couple of years on things like we've taken our sku

from 102,000 down to 28,000, tripled the revenue per sku, 7,000 i.t. applications to 700, a 90% reduction, and now we're focused on the supply chain and leveraging the scale, doing the integration work from these many acquisitions so that we can become a scaled provider in the categories in which we compete. >> when you think about the consumer, i wonder how you're processing all of the hand wringing we're hearing regarding student loans or the drawdown of excess savings, i mean, the counterpoint is obviously, if consumers have a reliable paycheck, they will spend the paycheck are you thinking about an environment in which you are looking to discount, rather than raise price, let's say >> yeah, so we certainly are -- in our categories, and in our brands, facing a very difficult short-term macro environment because, as you say, with consumers under pressure from inflation we're seeing consumers

prioritize spending on food and essentials, and that's creating a short-term market decline in many of the durable and discretionary categories that we compete in that being said, we believe we've got so much opportunity that's within our control to drive costs out, to drive efficiency, to create capability improvements that what we're focused on is trying to drive that improvement, so when the macro turns in our favor we are well positioned to take advantage of it. >> because that's the other nod, chris, that comes against you, which is, you're not really consumer staples, you're more in the discretionary category, but it is kind of staples when you think about baby strollers and car seats, and sharpie pens, and it's kind of this middle ground where it's -- you're in a tough environment, especially at the low-income consumer. you get hurt is that a challenge? >> it is a challenge what i will say is, the thing

that gives us confidence is we have the market-leading brands, and these are categories, and we've got a mix of categories, so not everything is discretionary, not everything is durable. the writing business is our largest and most profitable business with brands like sharpie, papermate, expo, dymo, that business is doing very well, we are above pre-pandemic levels, and set up for a very strong back-to-school season at the same time, we've got some other categories, like home appliance, that saw a surge during covid time when people were spending more time at home, those businesses are more normalizing from covid peak levels and so, we're managing the different brands and the different businesses in a way that maximizes the value based on the current environment. >> yeah, i feel like we all have candles for a long time after buying them during covid for our homes. chris, thank you very much, appreciate you joining us here, and we'll look forward to

following the progress here on this one, chris peterson, the ceo of newell brands. >> very good, thank you. coming up, the ceo of norfolk southern, stock has underperformed the s&p by 25%. lower costs and lower freight is volumes following the derailment in ohio. watching 3m, on news it settled the forever chemicals lawsuit, still deep in the red this year, read more about it on cnbc.com h 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.

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set to close in just a moment with stocks mostly lower, following lots of weaker data, pmi manufacturing coming in below expectation, and then zoom into individual countries, germany's pmi falling as the services sector slows down, uk's pmi three-month low hit by the weakest growth in new order

since january. this came after the surprise 50 or double basis point hike yesterday. all that's help the dollar, on pace for the best day in more than a month the euro is on pace for its worst day since march 15th we grapple now with weaker growth, potential recession here, and higher interest rates as they try to deal with inflation. >> yeah, they do have an issue in western europe. news update this morning with pippa stevens. the supreme court, immigration policy today, in an 8-1 vote the justices overturned a texas-based federal judge's immigration ruling it blocked the government from directing immigration authorities to prioritize deporting non-citizens who pose a public safety threat, including those with a serious criminal record. the policy essentially kept other unauthorized immigrants who had been living in the country for being deported. there are new fears about a possible disruption to u.s. air

traffic operations, a government audit released today finds the country is facing critical staff shortages at air traffic control facilities it says 77% of critical facilities are staffed below the faa's 85% threshold, and auditors claim the faa doesn't have a plan to address the issue. and temperatures in beijing hit triple digits this week, shattering the city's june heat record, a weather station recorded 106 degrees fahrenheit around 3:00 yesterday, a full degree hotter than the previous high set in 1961 the heat is expected to continue through saturday sara, back to you. >> pippa, thank you. after the break, the ceo of norfolk southern, his take on new findings over the ohio derailment what rail traffic is suggesting about the economy and how the port strikes are impacting business. june is pride month, and cnbc celebrating all month long

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fairly steady action so far on this russell reconstitution day. and post, bob? >> how much of a breakout in yields are we going to have and how much pressure does that put on stocks? modest, down 1 moin.5% on the month. take a look at these names the big material names, huge copper company that's out there, this thing was trading 34 at the start of the month, went to 41 last week, now down to 38. so, is that a big drop

no, but a toppy behavior, that's because of concerns on slower economy on potentially higher yields elsewhere, you can see the same thing with the semiconductors, what a run these guys have had taiwan semi, with trades down here at the new york stock exchange, $100 start of the month and a huge rally, went to $110, and now look, back to where we were practically at the start of the month is it a big decline, necessarily? no, because we had a big run-up. but, it was toppy, and has now come back down there's part of the concern. and then you've got stocks that are out there, like consumer staples names that aren't really rallying, but not dropping that much so they're defensive, and they're kind of holding up here's the classic one would be kimberly clark if you take a look here, it was 134 # the start of the month, it was -- you know, it's heading towards 140 or so. so, that's holding up pretty well these -- so far this month so not a big rally here, and, again, sara and i were talking about this, with the two-year yields here, just keep an eye on

those numbers there, you know, 4.8% we start going over certain levels, technical levels have become very, very important when you're looking at bond yields. that's looking to get worse, that's not happened yet. the decline this week has been relatively modest. sara, back to you. >> so, bob, earnings expectations, big topic of debate, we were talking earlier with david rosenberg about the what about fundamentals are telling us, are we going into recession or not what's happening with earnings expectations >> earlier in the year everyone was busy reducing earnings expectations, particularly for the second half of the year, and that's stopped, about a month and a half ago, the numbers started rising a little bit because everyone realized the signs of the recession weren't there. we'll see what's going on. we've had nine, ten companies reporting early numbers for the second quarter, all nine of them have beat expectations, and yet six of the nine as of yesterday had seen their earnings

estimates reduced because analysts are still not quite sure about what the effects of this so-called recession that might be happening in the second half of the year might be, so let's say it's a little uncertain right now overall, earnings are essentially unchanged from 2022 right now. >> got it. thank you, bob, bob pisani. turning to transports, our next guest is a giant in the space, with a finger on the pulse of everything, industrial development, e-commerce, the company has ling with increasing costs and lower freights on the heels of a major derailment in ohio, a story we covered closely this past winter joining us here post nine in cnbc exclusive, norfolk southern's ceo alan shaw, you were in east palestine, ohio, and there's still headlines on this every day congress is looking into it. ntsb investigation how much of the time is being spent on this still? >> i'm absolutely focused on recovery efforts in east

palestine and i'm focused on long-term strategy for value creation at norfolk southern that we laid out last december which was really a balance between service, productivity and growth leveraging the unique strengths of our franchise, and the secular macro trends that are really driving growth into our region. >> i want to talk about that, but just first on the crash, since, you know, there's so much attention on it still, it did come to light, according to this ntsb, early investigation that an engineer had warned about the side of the train to the yard master before, and that that concern was dismissed. so could you respond to some of this new information that's coming to light? >> certainly, the ntsb field hearing is a fact-finding forum, it's an important part of the process. we've been cooperating with the ntsb throughout. we have folks at the field hearing right now. we're going to learn, and we're going to get better out of this. we're not waiting to act you've seen me on the hill engaged with policymakers on

bipartisan legislation to improve rail safety. and we've also hired a independent consultant, former admiral in the navy nuclear program to help us enhance safety at norfolk southern the navy nuclear program is the gold standard of safety and norfolk southern will be the gold standard of safety in the rail industry. >> do you think it alters the equation between safety and speed, safety and tisefficiency productivity >> the way we look at safety is it rolls up under operational excellence that's what we're driving at norfolk southern, the discipline to run a safe and reliable and efficient railroad all flows together that's part of our focus in the long term. >> right, but every quarter we look at metrics like average speed, right, things like that, does that slow down as a result of all this? >> you know, actually i think what we're going to see is improvements in safety as we enhance our operational improvements to safety and speed as we enhance our operational discipline and right now, you see our service metrics improving.

that helps our cost structure. that also gives us more capacity for volume growth, and as you look at our weekly figures, you see network fluidity improving and you see volumes recover as well. >> so the current legislation on the table, is that -- do you support it is it going to make rail safety safer? >> you know, i think there are many, many provisions in the railway safety bill that make a lot of sense, and i've talked to my colleagues in the industry about being for enhancing safety and, i want to make it really clear, a lot of these things are things that we've been advocating for, for a number of years, such as rail carrier safety standards and i do not believe it will have an onerous impact on our financials or the cost structure for our customers either. >> so tell us what's happening with the business. we look at railroads like yours to get a feel for the macro economy. do you think we're heading into a recession? >> you know, as you and i have talked about, we have a unique seat and a unique view into the u.s. economy with over 5,000 customers, talking about the

consumer, the consumer is pressured by frankly the consumer may be more resilient than we thought, you saw that in the housing starts number, and retail sales numbers, the inventory destocking that's going on may have hit an end and as i talked to ocean carriers, they see an opportunity for growth and volume later this year, as i talked with the ceos of our consumer-facing markets they're continuing to invest in long-term growth because it's only a matter of when the u.s. consumer recovers. and at the same time, in our manufacturing markets, because of the various federal acts, there's an intense amount of non-residential construction that's going on, you know, i'll just take a look at this year, through the first four months of this year, new factory construction in the united states is tracking at about $190 billion, which is three times the annual average in the 2010s. and so we've got a lot of optimism for the long-term. >> we taulkd this morning about

factory manufacturing, infrastructure, i mean, i assume that's all beginning to bleed into the economy in your view, with we at the earl innings of that, at least from a rail delivery standpoint? >> we absolutely are, and, in fact, one of my dmcustomers referred to this as a super cycle for non-residential construction i talked to a customer who was a european auto-maker, and he made it really clear that because of some of these various acts in the opportunities that exist in the united states, because of low energy costs, energy reliability, logistics of infrastructure that's already in place, a pro-business environment, that if you want to participate in the u.s. electric vehicle market, they need -- they know they need to invest in production in the united states. and so that's something that's new, and that gives us a lot of encouragement for our strategy going forward. >> i was just going to ask, where is the biggest source of volume growth going to come from, for you, is it any of these?

>> in the manufacturing sector, it certainly is in the ev market, and you -- you see a lot of development there ford just got a $9.2 billion loan yesterday, and this morning the chips act was expanded to include production, and the semiconductor network. we're also going to see growth in the consumer markets. look, we serve over 60% of the consumption in the united states, and over 50% of the manufacturing, including over 50% of the manufacturing of u.s. light vehicles, and we've got the strongest, most powerful intermodal franchise in the east, and so we've got a strategy that aligns with our unique franchise strengths and we've got a franchise that faces the fastest growing segments of the u.s. economy. >> does the port strike impact you? >> you know, what we've seen over time is a shift, secular shift from west coast ports to east coast ports like 10, 15 years ago 75% of our international volumes touched the west coast ports

now, 75% touch the east coast ports. >> why >> well, because i think the east coast ports have done a fantastic job of infrastructure improvements, and certainly we've participated in that with our infrastructure improvements, they've done a good job of labor negotiations and collectively we've done a really good job in partnering in each other's mutual success. >> the big threat is what, trucks, losing share to trucks and air? >> there cheerlearly is a weak k market right now pretty soft but there are also indications that's starting to strengthen because spot truck rates are starting to move up. rail is always going to have a cost advantage versus truck, we're going to have a capacity advantage versus truck, and it's sustainability advantage versus truck, why we're really focused on closing that service gap relative to truck. >> alan, thanks for stopping by, good to get an update on the

business alan shaw, the ceo of norfolk southern. just don't do it the streets becoming more and more cautious on retail ahead of nike earnings, bear llcas on target, under armour, and nike in a minute. it's raising capital to help companies change the world. ♪ opportunity is making the dream of home ownership a reality. ♪ ...and driving the world forward to a greener energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. at ice, we connect people to opportunity. i promise - as an independent advisor - andto put the financialone who cwell-being of youction. and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors

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joining us this morning is cnbc senior retail reporter courtney reagan, they're now talking about risk to back to school. >> yeah, exactly, risk to back to school, continuing to see sort of pressure on traffic, and also what's going to happen after we get some new announcements about student loans, that could be a big problem for target, at least as far as jp morgan is concerned when they look at their coverage, they think that target, best buy, dick's sporting goods and ulta are among those that could be pressured the most by the student loan program changing. but when looking at target particularly, issues that exist previously are sort of still there, and if we don't get a change in that sentiment, a change in the traffic in the sales in the commentary out of target around the 4th of july, when consumers are buying more closer to need according to the retailer it could be a problem for the rest of the quarter, and you're looking at back-to-school spending already by some folks in the midwest and the south

because those schools are going back much earlier than other parts of the country like here on the east coast where the kids are still in class. >> you forget if you're not in that part of the country how early some of that starts. meanwhile, some soft line as well, this call by wells on under armour, targeted aids, lower earnings estimates for nike, talk about the overlap. >> it is interesting here, obviously we like to compare sort of like retailers when we can, even though we know there's a lot of nuances, in the case of welles looking at under armour and nike, there are overlapping themes inventory is an issue, too much inventory or not in the best places, displacement of inventory, a concern, overexposure to wholesale in the north american region. it's not that that channel is bad but they have some pretty strong compares a year ago, so it's going to make it harder to improve off of that for some of these names. under armour, a new ceo less

than six month so, you need some time to work through that strategy if there are going to be any changes, we know that takes a while. for nike, of course, you have sort of this bumpy recovery is the word that they use in china, and nike -- or china is a very important market for nike over there, and it just hasn't been as smooth as some of us had hoped. so, not huge, huge issues with demand for nike necessarily, but just the way the inventory is located, both around the world, and here in north america between wholesale and direct to consumer. >> yeah, feels like for nike it's more just the macro concerns because they're so globally exposed, you know, with foreign exchange, and with commodities and inflation, and then what's happening with china and everything, but there hasn't been much signal, courtney from the company that as you say command has weakened under armour the keelg with other. some turnaround story when we hear from the new ceo. >> exactly, sara, like we talked about we love to compare

companies, it's helpful when you're looking across the competitive landscape but these two companies are dealing with very different things internally, albeit some of the external factors are overlapping. but that china exposure, much more critical to nike, of course. >> yeah, people talking about guiding below four we'll see. courtney reagan join you go us there to talk retail. up next, the chips act isn't just for chip companies anymore, a number of other sectors could now receive federal subsidies, but who stands to benefit the most we're going to break that down in just a couple of minutes. the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠.

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. the biden administration broadening the companies that are eligible for funding under the chips act, that's the focus of today's "techcheck" segment partsinevelos. we were just hearing from the norfolk southern ceo that's bullish for production in this country. >> reporter: when you have companies getting money from the government it's a boone. it's been 11 months since the chips act became law supply chain projects with s spending plans can finally apply for funding, and this time around chemical makers, tool suppliers are included in the mix. it includes $39 billion for manufacturing, $11 billion for r&d. none of that money has been disbursed just yet

there is a staff of 115 that have reviewed nearly 400 statements of interest from companies seeking to build semiconductor projects across seven states what do they want to do? there are many promises to build here in america from samsung building $17 billion worth in texas. $43 billion from tsmc. $40 billion from intel you can see that list is quite long but much of those promises are contingent on the government chips act. companies like intel saying it's critical for construction. the commerce department acknowledged there is, quote, limited funding and they are, quote, going to have to make hard choices the pressure is on, sara as companies are having their own, applied materials and micron announced large investments in

india. intel said they will build a $33 billion plant in germany it could take at least four, five years clearly the clock is ticking to make chips in america again. it's a boon to bring it full circle but needs to happen soon. >> when do we expect the money to start flowing >> reporter: they had 400 statements of interest it took 11 months to get the whole process in they've opened it up the funding, stage three, is under way right now. it could be months before because they have to do due diligence and then you have to factor in the smaller guys, too, and the r&d. it's going to be on a rolling basis. probably in the coming months. you did see, to bring it back to the stocks, the smlh, they are coming off that ai high. kristina, thanks kristina partsinevelos a new law impacting those looking to buy florida real

estate which has been so hot, some restrictions now. details after the break. ♪ ♪ 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 across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening. from big cities, to small towns, and on main streets across the us, you'll find pnc bank. helping businesses both large and small, communities and the people who live and work there grow and thrive. we're proud to call these places home too. they're where we put down roots,

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welcome back a new law targeting real estate investments in florida has wall street buzzing this morning. our robert frank is in bay harbor islands, florida, with the story. robert >> reporter: good morning, sara. well, this house listed for just under $20 million. would normally be marketed a lot to overseas buyers, but a new law would make it illegal to sell to buyers from certain countries. now chinese buyers would not be allowed to buy any real estate in the entire state of florida under the law. buyers from russia, china, and many other countries, five of them to be exact, couldn't buy property within what's called ten miles of critical infrastructure that's airports, seaports, water treatment plans, electrical facilities -- basically drama map and it excludes all of miami, many parts of the florida coast. governor desantis said this is geared to preventing the influence of the chinese communist party on florida what's interesting and annoying to many brokers here is that it

also includes venezuela. venezuelans have been a huge part of miami's broet. growth the city of dorell near the airport there is a huge venezuelan population there and because it is near the airport it is now a no buy zone for venezuelans. >> there is a lot of confusion if this impacts all venezuelans or a certain side of venezuelans. when you read the headlines where it says venezuelans can't buy property, everybody panics >> reporter: to enforce this sellers could face fines and even jail time if they sell to citizens of these countries. there is a lawsuit by chinese citizens of florida to block it, but unless there is an injunction, guys, it will take effect next week on july 1st >> i mean, what is the motivation here, robert? you think if you want more

growth and investment for the economy, you wouldn't do something like this. >> reporter: the motivation sta started with the anti-china sentiment, their purchase of farmland in the rest of the country. desantis in florida has taken it to a whole new level including venezuela, russia, big buyers of florida real estate and blocking out not just farmland but condos it started with farmland and china and now broadened. it even got votes from many democrats in florida it is popular. >> i guess it's certain countries, targeting certain countries that are not so friendly geopolitically. >> reporter: that's right. >> interesting use given what foreign buying has done for areas of miami and south florida over the past 40 years robert, thanks that's robert frank covering real estate in florida for more on the market there, don't miss don pebbles talking

about this at 1:00 p.m can help us understand the implications of this going forward. >> in the meantime, carl, watching the market here, we're giving back, pulled back, the nasdaq has been up eight weeks in a row we're down almost 2% and a one week sell-off. one charptt of the week to keepn mind is the yield inversion which is extreme and continues to widen it goes more negative, down more than 1%. the difference between the two year and ten year, it's a recession concern. a lot of people also say it reflects the fact that the market thinks the fed is going to be cutting and inflation is going to be coming down. keep an eye on that. >> yellen making some comments "the journal" has a piece up on the tape saying we're pro competition, but that doesn't mean you won't see mergers in banks. kre, though, i think basically back to flat for the month after putting together some good gains in the last couple of weeks, the kre is worth paying attention to as well. >> and down more than 30% so far

for the year you're also watching gold and bitcoin. bitcoin has been interesting >> a one-year high when was the last time been a while. >> despite the doom and gloom and binance and ftx, retail continues to go there. it's risk appetite which has returned and helped tech >> next week carnival, nike. frank holland is in for the judge. let's get to post9 welcome to "the halftime report." i am frank holland in for the judge scott wapner front and center, where stocks are headed from here the s&p 500 is looking to snap a win streak standing by to break the entire thing down, jason snipe, rob sechan and jim lebenthal first, a quick check on the markets right now. take a look at the markets a down day across the board. the s&p down even more than that the nasdaq hardest hit down almost 1%.