welcome to "squawk on the street." i'm carl quintanilla along with morgan brennan on the aagain da, jp mother again's portfolio manager phil camporeale is here >> sheryl palmer, the housing data shows stronger than -- a stronger market than many had expected, she said just today new home sales jumping 12%. >> the stock may be up 300% this year, but it may still go

higher first, a check on the markets right now, which are higher with the dow up 134 points the s&p 4350 exactly the nasdaq higher and the small caps getting another bounce, too, up 1% one of the stronger performers month-to-date in a month that has been strong so far, carl topping the tape, taking a look at fed fund futures because there's a cycle high being priced in, 77% chance we see another 25-basis-point hike in july morgan stanley saying the federal reserve will raise rates at the july meeting. we did get the hawkish comments from ecb president christine lagarde in portugal suggesting in that part of the world the hiking is not over strong data across the board, stronger than the market

expected definitely puts pce in focus. >> new homes, faster pace in more than a year conference board, best in a year and a half morgan stanley, which just two weeks ago said the fed is done here now says the bar is maybe lower for a july hike than they previously expected. some of the housing numbers sort of lead you right to that point. >> we'll be talking about that a little more as well in the hour, but how resilient housing has been we've had a number of guests across cnbc in recent months who suggested, hey, maybe the bottom is already in on housing certainly with home uilders, what you're seeing with home builders specifically sort of bridging the gap to add more supply into this market. the fact there is demand there for those homes now being built. >> we'll talk to taylor morrison about that in a minute as for yesterday, the headline was one of bearish sentiment as stocks were down the dow seeing its longest losing streak since september. below the surface there were bullish signs. that's what mike santoli is

watching today >> yeah, carl, this has been another indication that what everybody wanted to see coming into june, the market to broaden out a little bit, to not have the index be so reliant on that handful of growth stocks happened it happened in fits and starts yesterday the equal weighted s&p was up 0.6% when the market cap weighted index were down what's interesting to me is the three-year chart equal weighted s&p against the nasdaq 100 they're kind of neck and neck at this point they've gone through these different phases of under and outperformance obviously this year has been all about the comeback in the big nasdaq stocks. on balance, it is not necessarily been a story of just a uni dimensional market it's very selective. it's still a split market. you are talking about housing, home builders, home-related has been ripping industrials have been strong, especially capital goods, transports thanks to airlines

and other travel areas, meanwhile banks, consumer goods not great. that's why we have this sort of indifferent overall trend in terms of sector participation, in terms of overall breadth for the last few months. it has held together here. that good data you have been talking about is very interesting because the whole equation this year to me has been how much is the fed going to have to do to choke off employment and demand in order to get inflation under control you are starting to see disinflation, even as the economy hangs together so that equation has to far been digestible for the equity market. >> how much, mike, does this increase we've been talking about it for weeks now but how much does this increase the talk about soft landing possibility here or given the fact that in the case of the fed, we also know that the full impact have all the interest rate increases haven't been fully realized in the economy. are we in this precipitous place or is there a moment, especially when you see the delta ceo with bullish comments about the consumer, are we in this moment

where investors can go, oh, it's maybe not as bad as expected >> i think not as bad as expected is the predominant feeling at the moment. i don't know there's great confidence we'll stay in that comfortable window i do think the soft landing has become a little bit more of a high probability outcome how much are we going to land? we tried to allude to this earlier today. right now it doesn't seem -- employment is weakening around the edges. housing is coming back but off a low level. i still think we're not really liberated from that sense out there that we could be wrong in two different directions inflation can stay high and growth can fall off. i think for now, where the market has been, let's remember, we were higher we were 10% higher on the s&p a year and a half ago. we're still in that middle zone of we recaptured 60% of the bear market loss but folks are still wondering if we have a little

payback. >> we'll see how the rest of the week develops going into the holiday. thanks, mike, with this rally broadening out, positive data and the jobs market continues to hum along. will we see the soft landing mike was talking about with the rates high joining us, from jpmorgan, phil c camporeale joining us. the second half could unknowns, whether that's student loans or draw down on savings are you less worried about that? >> i think the second half is becoming more clear than the first half coming into the year. this is what a soft landing feels like you have an economy still landing but importantly avoiding recession. we dropped our recession probability from 40% three months ago down to 25% importantly, if you avoids recession, as i call it, the s&p

490, which is all the stocks outside the top ten, can have some sort of hope they wouldn't have in the beginning of the year the other piece of this thing is employment the fed upgraded their unemployment rate from 4.5% in march down to 4.1. that's really important. anybody that's really bearish has to have a view that the labor market is going to deteriorate, which we just don't have the other piece around this is, yes, price out the easing. that's okay. if you were expecting easing this year, you were lopg a crisis we were never long a crisis. if the disinflation process continues to occur, you can be in an environment where a balanced portfolio still makes sense. i'll tell you what our number one risk is. it's a reignite of the housing inflation story. in order to have disinflation continue to occur, you need rent to continue to come down that's the one thing we're looking at a balanced portfolio makes a lot

of sense right now if you're wrong on stocks you get the diversification of bonds. i'm so happy it's not last year anymore and it's 2023. >> what does a balanced portfolio look like in 2023? is it 60/40? is cash involved >> good question we upgraded our forecast for 60/40 from 4% annualized to 7% annualized over the next deck ate. the market sold off a lot on the equity side. our 60/40 portfolio looks like a 60/40 portfolio. we're neutral stocks leaning into the developed non-u.s. story no cash in the portfolio my biggest competitor out there right now is three-month t-bill. it's not some other fund family. 5% risk-free for noncash investors is still a huge opportunity cost with balance fund up 8% why are you neutral equities i ask that because if we're in

this disinflation cycle, isn't that good for stocks or better for something else >> as long as i still have landing in my view, it's still too early for us to get overweight stocks. i think the overweight stock story comes if you get inflation moving closer to target of 2% without any consequence in growth i can't say that yet i can't be underweight stocks in this environment if you believe in a soft landing. >> what about the notion -- i think it's called boiling the frog as a narrative jpmorgan has spun, especially in europe, where you keep rates this high the longer you go, the better chance that something breaks. >> there is no one that knows what the lagged effect of monetary policy is even when the fed is going a quarter basis point let alone 75 basis hikes four meetings in a row, which is what we were doing this time last year. the interest rate sensitivity economy isn't what a lot of people thought in other words, you still -- we're still looking, carl, at the unemployment rate, the

consumer, you mentioned delta. delta last quarter said they had record bookings. i'm going on summer vacations. a lot of people are going on vacation i think we would take more cues from the consumer. again, our biggest risk right now would be a rei guess nation or reacceleration coming from the housing market i'm not saying that's happening but that's our biggest risk. >> in light of that, how important is the commentary we get from the biggest central bankers over the next couple of days >> base case is going to be hawkish. there is no fed, ecb banker, bank of japan, that's going to say wave the victory flag, the fight is over on inflation they are clearly data dependent. if the fed is going a quarter basis point every quarter, they are data dependent no central banker wants to be arthur burns, the central banker before paul volcker who let the

foot off the gas too soon. >> that's been a tough learn phil, thanks good to see you. still to come this hour, we mentioned home sales up the most in more than a year. prices up for three straight months we'll get an inside look at the state of housing with taylor morrison that stock covering a near time high. a big move lower for walgreens and why the best opportunity right now may be in real estate. we'll get to all of that over the next hour. "squawk on the street"etns ghafr is rur

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welcome back to "squawk on the street." take a look at shares of unity, which are soaring this morning up 11% after wells fargo initiated the stock at overweight with a $48 price target the bank saying that waning metaverse hype has overshadowed a mobile platform opportunity. you can see that playing out in shares of unity. let's get to housing new home sales out today signal upside for the market. our diana olick has more on that >> hey, carl yes, this was a huge number for the builders in may. sales up 12% month-to-month and up 20% from may of last year and beat the street's expectation, which was for a slight drop. that was likely because mortgage rates were rough in may when these contracts were signed and then counted the 30-year fixed started the month around 6.5% and shot sharply higher over 7% for the second half of the month we did see a drop in the median home price, down 7.6% year over

year part of that is builders lowering prices and part is just a shift in selling skewing slightly lower due to higher mortgage costs the sales jump should not be a huge surprise given what we've heard from lennar and kb home in their recent earnings report both saw a better than expected quarter and both talked about not just strong but growing demand due to the very low supply of existing homes for sale now, the home building etf is on a tear, up 40% year to date. the top ten public builders, they're taking a much bigger share of the market. 43% of new home sales last year, which is the highest share on record and up 9 percentage points from the year before. it's a volume business. >> diana olick, thanks for breaking that down let's stick with the housing market and trends across the country. we're joined at post 9 by sheryl palmer the stock is up 55% year-to-date hitting an all-time high earlier this month up 2.5% right now in early

trading. great to have you on, especially on a day like today. that last step that diana just called out, 43% of new home sales and that the home builders, biggest home builders are filling the void, if you will, to create more inventory and housing supply i want more on your thoughts on and how the dynamic plays into that. >> thanks for having me. with respect to the share and growing share, and it has doubled in the last few years, i think much of that is given the environment we've been in over the last, let's call it, covid post years where the supply chain got much more difficult, as i think there's been a lot of discussion around the difficulty in building, the time involved, the costs have gone up i think it's been much more difficult for your smaller builders to compete at the same level, which has allowed builders to take a much greater

share. at the same time we've seen the inventory really constrain on the new sale, larger builders have continued to grab that share as well. >> we're seeing -- again, i'm channelling diana here but we're seeing a doubling of the homes sold but not yet started points to a big backlog. labor is an issue. we have jump of demand for materials. >> labor continues to be an issue but not what we saw last year and materials have -- i'm not going to say we're out of the woods yet but much better than we were 12, 18 months ago. there's much more predictability back in the supply chain it wasn't just the ramp up of starts that created difficulty over the last 24 months. it was a combination of the incredible ramp up coupled with unfortunate weather in many parts of the country, and, honestly, just the way the labor looked at the opportunity today through covid.

we just had a lot of difficulty getting people to the job site you put all of that together and we were in what i would call that perfect storm so, today as things continue to heal, the manufacturers are really back and much more predictability things that used to take two or three weeks may take five or six and now taking 16 or 18. there's a couple of exceptions in there but, yeah, i think we can. >> one thing we talk quite a bit about is the level of factory creation the infrastructure act, the c.h.i.p.s. act and the drain that's putting on labor. are you feeling that do you feel like you're in competition with some nonresidential >> absolutely. i think we saw it from commercial for quitesome time. i think we saw it from factory i think we saw it from just pure innovation across the board. but once again, i think that we've begun to solve for that. you look at the employment numbers. clearly we know we were in a very tight labor market. but i think the builders have also contributed to kind of the

ease of the production cycle today. i think there's a lot more simplification, so i think it's an easier opportunity for people to get involved in the trades, have an understanding and repeatability in what they're doing. we were all doing it so different years ago. there's a lot more, i'm going to say, semicustom in the workplace. i think we've simplified the model across new and i think that's helped the labor environment as well. >> as for the shares, is this a currency now you think you can use to do deals, higher, i mean, how is this working in your favor, the actual share price? >> you know, carl, we've done a fair amount of deals over the last many years. and we felt the scale was quite important for the organization so now i look -- when i look at scale, i look at are we in all the right places and do we have the right scale in each of those markets? and i think that answer is, yes. i feel the company's in a much better place with the acquisitions we've done for the last seven, eight years.

today it would have to be for the right opportunity, it would have to be accretive we have the currency available that wouldn't motivate us to do a deal it has to be strategic for the right reasons and accretive for our shareholders. >> what's let's talk about pricing. what are you seeing for incentives and, more importantly, how is that breaking down across major markets in the u.s.? >> that's an interesting question, morgan, because we saw the pressure the builders had last year, and we saw prices through a combination of incentives, adjustment in prices, a lot of help on the mortgage interest rate side. and i would say since we turned the corner into 2023, it's really pulled back part of that is what you heard from -- at least what i heard from prior guests this morning and diana that we're just so inventory constrained. i think the builders have pulled back on incentives that's the first place to get price back before just trying to

continue to raise prices i think the builders are going to be very careful not to shut it off we absolutely have to deal with the affordability constraints that exist for consumers today and i think that we have the tools in our tool box to do that with using finance as a sales tool as you know, it works four to one from just price adjustments and allows us to really help the consumer get financed. and i think the consumer's in a different place. they realize we're not going to have 3% interest rates the combination of the two gets us to a really good place. >> just to put a fine point on this quickly, would you say housing has bottomed or at least stabilized and found a new normal >> i think it's stabilized i hope we see modest shifts from here once again, we're supply constrained which is the temptation to raise prices or that opportunity, but once again, i hope that's weighed equally with the affordability issues we need to deal with. >> sheryl palmer, great to have you. thanks for joining us. >> thanks so much.

>> ceo of taylor morrison. got a new street high from meta as citi goes to 360 but is there more room to run for a name that's already up 130% this year we'll talk to the analyst behind that call next. plus, keeping an eye on delta today as it holds its investor day the company forecasting earnings at the high end of the previously stated ranges and ceo ed bastian joins "squawk" this morning. >> our people are doing a great job. and the demand, as you know, as anyone traveling knows, is off the chains it doesn't matter if it's in the u.s., in europe, in asia people are wanting to travel and they're prioritizing travel. as a result with demand we're seeing today is even stronger and the value is even greater than we're seeing, we're raising not only the full year, we're raising the second quarter i think the second quarter's going to be our highest q2 earnings in our history. teming just three years afr the start of the pandemic, which is pretty incredible

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welcome back european markets set to close in just a moment in what's been a mixed session. now positive the stoxx 600 has fallen in six straight sessions and today set to break that streak if it ends the day up the story abroad today is the close eye investors are keeping on central banks saying they are pricing in rate cuts too soon but christine lagarde doubling down saying inflation is too high in europe saying it's too early to claim victory. a lot more on how central bankers around the world are thinking about the rate environment tomorrow when our own sara eisen sits down with fed chair powell and christine lagarde. coverage starts at 9:30 a.m. eastern. let's get a news update with bertha coombs. >> hey, carl a senate report claims the january 6th insurrection was planned in plain sight

democrats on the senate homeland security committee say the fbi and homeland security downplaying the potential for violence in the leadup to the insurrection at the capitol. as a result, they claim the government did not prepare properly because it failed to correctly analyze the intelligence coming in prosecutors in the idaho college murders case say they plan to pursue the death penalty against suspect bryan kohberer kohberer is accused of killing four students inside of their off-campus home last fall. he has pleaded not guilty. meanwhile, his legal team is asking a judge today to pause any proceedings until they receive records from kohberer's indictment last month. more than 2.5 muslim pilgrims are expected to gather in saudi arabia this week for the 2023 hajj season it's the first time the gathering is returning to maximum capacity since the

covid-19 pandemic began. all muslims are required to participate in the five-day hajj at least once in their life if they are physically and financially able i think financial is the tough part for most people >> indeed. thank you, bertha. coming up off the break, the street may be bullish as ever on meta but alphabet gets a downgrade. walgreens falling on poor guidance more on that move coming up. june is pride month. cnbc is celebrating all month long in sharing stories of corporate leaders with you here is sixth street partner and vice chairman mattery chavez >> people often tell me, marty, you're such a pioneer on wall street i would say i don't see myself that way i do see myself as somebody who's just myself. and i always have been that. when i first came out to my

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couple hours into trading. close to session highs finally got above 4350 let's talk to bob pisani about what's moving. >> you want to talk about alphabet we got a downgrade from bernstein. finally an analyst doing their job. look at this stock we are up -- this is the ai rally, 20% 20% in a month this stock moves. largely on all the other big tech names around the ai rally moved as well. wasn't anything in particular. finally somebody says, you know, this has gone about as far as it can reasonably be. what have you got with google? 90% services you have the ads that's starting to top out that's hollowed out, bernstein said android, youtube, that's fine. and cloud, which is about 10% of the revenue. it's a great company but 20%

moves, alliance -- bernstein did the right thing in making the call basically it was a valuation call. >> it's weird. you think about a few months ago where people thought they couldn't shoot straight on ai. now the argument is they're moving too fast. >> remember, the ad business, the core, they used the word hallowing out. that was a big word to me. they're right, it's hard to push forward. they believe so many other opportunities around ai that somehow that's going to make up for lost revenues. we'll see whether or not but i think the call was a correct one. >> one thing that got my attention in this note, we have the analyst behind this call on "overtime" later today, let me plug that, and we'll get into more detail. but you're seeing a share shift back to meta we got meta with an upgrade, too. it does seem like there's this rotation within the mega cap tech names between alphabet and meta more broadly. >> the important thing is how much more can you reasonably push the rally, the valuation itself it doesn't just sit here on this

vague idea that we're all going to capture a greater market share. that story, it's amazing it was good for a 20% rally we saw. i think that the whole story is pushed a little too far at this point. i'm a big ai proponent, but, again, bernstein made a very correct call. >> let's turn to walgreens group alliance because the health care giant on freefall after missing on q3 earnings shares are down 8.5% ceo telling analysts on the earnings call that customers are feeling the strain of higher inflation and other names are struggling as well cvs is down 20%, rite aid down 50%. how much is the pull forward from covid and vaccines, et cetera, versus the normalization of the market? >> what do we have here? we have lower covid treatment. that sounds like good news for the consumer we have lower prescriptions in general. weaker season for respiratory

problems that sounds like good news for consumers overall. i was happy to hear about that they have a couple of other issues besides this. they're trying to get big into the health care business they're trying to open doctors' offices. that's proven to be a little trickier that's a very good business but proving more difficult i thought that was a more significant comment from them, that they're having trouble. that's a key sector of their potential growth for all of these drugstore chains they missed on the sales growth and then they went with a weaker macro outlook. let's just throw in, the consumer seems vaguely weak. i don't think that highlights overall for the consumer the key point, they're terrible, all of them. down 25%, cvs, rite aid down 51%. wall greens is about 50% pharmacy most of the business is the pharmacy not the front end, the back end. cvs is 50% pharmacy. rite aid may be a little less.

you're getting pressures on costs, drug costs. they're cutting stores dramatically, all of these companies are. the growth is really difficult they're trying to get into new businesses then other parts, cvs is a significant pharmacy benefit manager in cvs health care this is a very difficult business for people to be in right now. i hope they can get into the expansion of the doctors' offices because that really is a big hub. you know you can't get a doctor's point anymore going in and get vaccines quickly, simple evaluations. that is a business that has tremendous growth opportunities. >> i have to get your take on what seth told the folks on "squawk" earlier about real estate. >> i think there are hunting grounds one would want to look we think real estate is an area that is full of so many fundamental challenges, but the fundamental challenges have caused urgent selling. you can see a pullback in lending. you can see vacancies in office,

troubles in retail for years and years and so that doesn't automatically make it interesting, but it may mean as other people abandon it, as other people face urgent pressure, there may be opportunities to buy, to inject capital, to make some rescue loans. we hover around looking for opportunity, trying to meet counterparties that are eager to transact. >> this dairs here is a man universally respected by stock pickers as well as indexers. a man so respected he was asked to do the new edition of security analysis, the bible of not just value investing but investing in general so, you should listen to this man, the first five minutes of the interview with becky quick this morning we can pull it up on our air because it's a font of wisdom. first off what he says here is becky asked him about indexing versus stock picking this is the ultimate stock picker, one of the most famous

in history who came on and said, you have to run harder to stay in place these days. you have to -- we have more competitors, smarter competitors, more information available at everybody's fingertips that's the vortex of index indexing most investors do not have informational advantages anymore. this is why vanguard became famous, why jack bogle became famous he admitted that and still said, there are opportunities for people who want to work hard in real estate, this isn't that hard to figure out this is a guy, buy when there's blood in the street. companies like sl green down 60% on the year. it's not shocking to find seth say, gee, there might be opportunities in real estate when they're barely picking up off the floor. sl green sold that park avenue building everybody said they can't do it, they did maybe that's a bottom, maybe not. here's a guy you ought to listen to who knows how to do stock

picking, value investing and knows how difficult it is to provide to clients. >> 245 park, a lot of hay being made about that deal with sl green yesterday. you saw it play out across the reit space you saw it play out with regional banks, too, the idea maybe there's a turning point. really good context from you, bob pisani, as always. so great to get it from you. well, next up, citi taking meta to a new street high this morning. we just teased this earlier. the analyst behind that call is next don't go anywhere. this. let's g. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

got a new street high from the desk of. citi raising their target for meta, 30% implied return from yesterday's close. they point to ad improvement for instagram's tiktok competitor reels, raised their projection to ad growth to 14 year on year. the analyst behind that call joins us this morning. it's great to have you you have a lot of intelligence you sort of gathered post-cannes and the stock price notwithstanding. i'm just wondering, what changed? >> what did change, so a lot of things at cannes not only did we get a better view of what's happening in the advertising market today and our view that stable to improving is where we're heading. i understand there's risk around recession and everything going forward, but in the here and now and for the next couple of quarters we feel the ad

environment is more than stable and improving. point number one, carl point number two, we think meta is investing in ad tools and products and ad innovation we think by doing this we're driving higher conversion rates to the point where, perhaps, conversion rates are getting back to where levels the third one is engagement continues to improve as engagement improves, we're seeing greater monetization. you can point to reels we track reels monetization. it's interesting to see how more advertisers are adopting the platform it's more of a low-fi environment that allows more advertisers to come in and be part of the system as we see new ad innovations launching on these platforms, we're pretty excited where things are going with meta. >> great chart work on reels one thing you haven't mentioned is operating leverage, head count, cost discipline, the things that gost this rally

started in the first place. >> that's for sure implied now that we're at these levels of 280 and our price target is up to $360, we have to see the flow-through, we have to see the eps come through and i think we do the key thing is the next leg of growth, in our view is, again, that stable to improving ad market, meta taking a greater share, and growth getting back to, call it, mid-teens, which is where we are, we think we'll exit this year around there. we think we'll get to mid-teens again in 2024. the high margin aspect of advertising shut flow through to eps. you're dead on, carl, we should see greater operating leverage particularly as advertising growth comes through, and notwithstanding, meta now has 20,000 fewer employees that has yet to flow through the model. i think we went to the last round of layoffs perhaps at the end of may, so come q3, q4, maybe we get a better sense of where the true profitability is.

remember, they're still investing quite a bit in the metaverse. >> i want to go back to this idea of stable to improving online advertising market. is this a tide -- a rising tide that lifts all boats or is this very meta specific, especially when you are talking about reels? >> you know, we think it's meta specific at this point it gets back to our view that in a post world, bigger picture, we think online advertising went into recession q3. we are going to lap that and two years later this year, and our view is meta essentially rebuilt their entire tech stack around advertising, around this time last year. we're starting to see the benefits of that what accelerated it for meta was reels engagement i don't think all the different ad platforms, we know snap is testing a new dr tool, pinterest is launching new ad ideas, as well, but we think meta is

farther along than others. rising tide definitely helps, but i think advertisers are more discerning and going after those platforms and using products that can deliver better conversion rates we think that's what happens at meta today. >> interesting how they continue to be in some ways tip of the sphere, whether that's on efficiency or ai, metaverse and now ad engagement and spending ron, interesting call. it's been all over the street today. appreciate the guidance. >> thanks for the time coming up after the break, we're live from the aspen ideas festival that's where we find our deirdre bosa ai is the hot topic there. >> hey, carl, it is. there was standing room only on my panel at generative ai earlier. it's all that everyone can talk about, including chatgpt exploded onto the scene about seven months ago i'll tell you what i'm hearing in aspen and why data is the new gold in this rush.

amid all these warnings about a big tech pullback, ai deals and acquisitions are heating up that's the focus of today's "techcheck" with deirdre bosa with an amazing live shot in as spen hey, dee >> it is there's no letdown here, at least in terms of that conversation one of the themes this year at the aspen ideas festival is edge of intelligence. discussions around harnessing generative ai's power as a net benefit to society plenty of talk about the downsides and risks as well. this is all taking place against

a back drop of continued deal-making in the space yet databricks acquisition of mo mosaicml and snowflake partnership last night and thomson reuters with casetext cn our partner and buy strategy to bring ai generative solutions to our customers. the nvidia ceo, jensen huang, said it's a shift in how companies are starting to think about their own data he said in the old days you moved data to the computer when you have giant amounts like snowflake does and it's proprietary, so valuable to a company, then you move the compute to the data. frank sl slootman put it this w, data is eating software. the idea that data is the new gold in this generative ai race

and companies may not want to give it up to chatgpt but rather they may prefer to harness their own data for their own means i spoke with aws and m.i.t. professor and they say one language model doesn't serve all purposes many aws customers want to trade on their own data. it took time for individuals, for you and i, to understand that data and privacy and consent were all interconnected and key. aws and snowflake are trying to give companies the tools to harness their own data, protect and secure it. there are signs the halo and market is starting to take off a partnership with nvidia but take a look at microsoft and

google they have been losing some of their shine in terms of share price and giving up some gains this week. guys, it's kind of -- maybe this is a good thing, you could say, if we're talking about it here on the ground. stock markets behave more rationally >> data brick's ceo talked about this on "overtime" yesterday as well dee, it's almost like the commoditization and more explicit monetization and how to protect it >> reporter: monetization is key. we talked about how the first stage is happening so quickly. a few months ago you could slap chat box on it and your stock would go up. snowflake and nvidia, the stock is up 3% investors want to know how

you're going to monetize this and companies, executives, cfos are starting to understand data is the key how you monetize it, how you bring it together to put in a large language model so it can give you something you can work with, make your business model even better. >> fascinating reporting and insights from you with such a beautiful live location in aspen. deirdre bosa, thanks for joining us after the break, the great rebundling changes taking place today for some big streamers we'll look at how cngthtohae e landscape. details next

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welcome back the consolidation in streaming continues. today it's paramount rolling in showtime into paramount plus our julia boorstin with more on the ever-changing landscape. >> reporter: services that debuted as a la carte are being combined to help smaller players compete with giants like netflix and disney and offering more content could help minimize turn and open the door to these media companies raising prices

paramount's new service costs $12 a month, up from $10 for the app without showtime and this comes after the media giant's shares plummeted on its last earnings report which revealed growing streaming losses bank of america, the buy rating on the stock noting management pointed to $700 million cost savings from integrating showtime and this bundling is part of a broader trend. the bundling of hbo and discovery into max disney announced it will merge hulu into its disney plus app and comcast announced a $20 a month along with the peacock premium subscription netflix adding games is creating its own different type of bundle so, carl and morgan, the question is whether this new bundling points to the need for more immediate consolidation that is if deals could gain

regulatory approval. >> that is a big if. julia, you've been in cannes to get your take on what's happened to the box office in the last few weeks. flash didn't do well how do you think that's changing the calculus on streaming as well >> reporter: that's a really good question. the changes we saw during the pandemic, this idea of first-run movie content directly on streamers, was an unusual situation and at a time when a lot of the media giants took a risk and said this is the right thing to do now. now we're seeing those big franchise movies back in movies. pixar, this title of "elemental" was newer. there's still a lot of hope the second half of the summer will be really strong because we have the indiana jones sequel coming out as well as "mission:

impossible." >> the flash in particular getting revisions on expectations a lot going on in media. the session closing in on $43.60 and goldman raises its estimate go up 0.4 to 2.2 they're doing this, morgan, on the back of the consumer confidence number which, as we know, is the best since january of '22 >> back to the conversation we had earlier, maybe the data -- not only is the data turning out to be largely better than expected but adding clarity. what that means in terms of the soft landing thesis. >> and then you couple some better action in the indices with the breadth that we got with the bulls going into month's end with the talk of rebalancing and taking money off the table. we do have the central bank chiefs with sara in portugal

i think people expect volatility on that. >> so far we've gotten hawkish commentary whether it is powell, whether it is lagarde, interesting how all of that turns out tomorrow in "overtime" we'll have a couple of big guests sticking with the housing theme compass, robert reffkin called the bottom in housing. >> see you at 4:00 let's get to the judge carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center this hour, your game plan for the second half of the year, more committee members debating the road ahead for your money today. joining me for the hour josh brown, jenny harrington and top-ranked financial adviser richard saperstein the dow is good for 150. the s&p about three-quarters of a percent. josh, i turn to you,