this is ge vernova, helping generate and move the energy that our world needs. ♪ welcome to a new era of energy. welcome to another hour of "squawk on the street. i'm carl quintanilla with leslie picker the new york stock floor is buzzing. three ipo hitting the market we'll follow all that action. mark mobius, his bullish take on india and opportunities he sees in china on the back of the recent russian turmoil. the ceo of sarept therapeutics. first, let's take a look at the markets right now.

a mixed read the nasdaq lower, s&p flat and dow up about 0.4%. beginning with good economic data driving the data is q1 and jobless claims post their biggest decline in 20 months those positive numbers on the back of the strong housing number we got earlier in the week are we getting to a point where we're getting too much of a good thing and could that hurt the markets? mike santoli joins us to kick off the hour. >> seems good news is still good news for the moment even though we got to the point where we have this recognition that's grown and become pervasive that the u.s. economy didn't buckle, as many expected six months ago. that's manifested in the market. on a month-to-date basis, consumer discretionary equal weighted is up 10%, 11%. same with industrials. that's double what the s&p 500 is giving. that economic optimism or at least greater comfort with where we are in the economy is making

its way into parts of the market that didn't anticipate russell up 1%. banks rallying home builders backing off a little tech has had its moment. looking down yields, ten-year treasury yield bumping up against the top of its range that could end up being something of a headwind as we go through this as valuations have gone higher. i'm also watching investor sentiment. we've gone from pervasive and deep skepticism at the end of this year to the more neutral spot i think bullishness has grown. it's less of a tailwind to have that persistent negativity out there to use as fuel for higher share prices but i don't think we're at that point right now where everyone is way over their skis and universally bullish. kind of an in-between moment where it's still, i think, a relatively -- a comfortable environment is one i keep coming back to in terms of the macro with an alert to be sounded down the road for what yields and the fed might have to say about it.

>> is it fair to look at ipos given the barometer with regards to pricing often tinlz it's a good thing when investors are more discretionary, not bidding up every ipo that comes to their desk. >> it's a thaw but nowhere close to being overheated. it does seem as if it's a fairly rational moment right now. they're not going to necessarily start to fly right out of the gate i think the first few ipos, once the window open, tend to be more of a give and take as opposed to let me just grab for the next ticker that comes across my screen so i can flip it. yeah, an environment where there's more back and forth action, more discerning buyers, makes sense here. >> more thoughtful always the thoughtful mike santoli, thanks. despite the constructive economic data and the fed's optimism that we'll avoid a recession, our next guest says it's too soon to buy cyclicals and says stick with growth and the consumer

joining us barbara duran thank you for being here can you explain that thesis to us. >> basically i'm still, even though the growth trade looks like it's getting long in the tooth i think it's too soon for cyclical even though we've seen good economic numbers as carl mentioned, we've seen good jobless claims, good durable goods numbers, typically you see cyclicals perform when you're seeing the economy growing. the economy, despite the good gdp number, is still slowing the fed is still trying to slow it down. people are still looking for a recession next year, but i think that that -- even that is in question i think we could have a soft landing but it's too soon for cyclicals because the economy is on a slow growth path. >> what do you think is priced into the market? mike was talking about sentiment being somewhat measured and reflective of the fundamentals on the ground. >> it's interesting because the fed was hawkish the other day and talking about possibly two and some people think three more

rate hikes but we're closer to the end of the rate hikes powell made sure we understood that, last year's rapid increase started 25, 50, four 75s in a row and started tapering down. even if we have two more rate increases and i think we will have 25 bips in the june meeting, i think that's discounted in the stocks right now. it's a question of you're starting to see people look for the laggards, looking for cyclicals, but at best those are trade, even small cap. i think there's still vulnerability in the economy we will see slowing growth we haven't seen the lagged effect. >> how defensive do you get? you go back to staples >> no, no. that trade is over i think everything is expensive. for me, i'm long a lot of the consumer discretion names like even walmart, which is not a big grower but consistent grower and they're doing everything right i think you stay in the growth trade. i think this ai trade is not over if you saw what happened with

nvidia yesterday, it opened down, oh, my gosh, china but there's so much demand this ai trade is just beginning. it's not a one and done kind of thing. for names like nvidia or microsoft, we'll be beneficiaries. you'll see earnings grow up so they will grow into these pes. i think there's more to come there. it's a question right now, up, where do you buy i think you don't own nvidia, you should buy a little bit here and wait for a bit of a pullback but you won't get a big pullback. >> really? you think the best opportunities are in the past on names like that >> i think so. if you want to look for the cheaper stocks, that's in value and cyclicals but i think there's danger in the second happen half with those types of names as we see more of an economic slowdown. >> with consumer you like walmart but also lululemon which are on opposite sides of the consumer income spectrum what does that say about your expectation for the plight of the consumer moving forward?

>> i think walmart is more about my expectation for the consumer than lululemon i think you have to be stock specific and those that have their own growth momentum. i've own lululemon for years, but it's expensive when you saw their most recent quarter up 25% and china up 79%. that's where it's only 8% of their overall sales but they'll be expanding there that name has growth coming on so many drivers. names like that. walmart is more of a safe and steady but also gaining share. it's not just an old story that's not innovative. they are innovating in a big way, e-commerce, their digital platform, the entire thing and walmart is not up that much this year. it's up 9% i think that's a good placeholder and a good compounder over many years. >> we saw the lulu chart where they filled that gap, and starbucks, too that's a couple of big china

names. we'll get nike tonight i wonder if you think people are discounting this soft recovery too soon in china? >> noo china >> yeah. >> i think so. i think china -- people have been concerned you can find bulls and bears on that, but the chinese government has announced they'll do various stimulus measures. the chinese have big savings when you see them getting out, that will be interesting for nike, particularly when you have lululemon up so strongly nike has 6,000 stores in china and lululemon has 120. it's going to be a good read to see what's going on there. we want to see what's going on with demand for nike in the u.s. that can be more telling for the u.s. consumer because i think they'll be more sensitive. >> we'll continue to watch that, barb thank you for being here and breaking it down for us. meantime, the battle of rates and inflation, capturing the attention of the street and those in the c-suite le leslie, you have some numbers. >> this was interesting because a key part of the cfo job is to

evaluate external risks. inflation, top worry for 32% of respondents in our q2 cfo council survey that's more than russia/ukraine war, covid, regulation the proportion of cfos selecting inflation as top worry ticked up slightly from last quarter but optimism does abound with a vast majority, 77%, believe inflation has peaked from here with only 9% who think inflation could go higher it could be a long time before we see a meaningful decline in inflation, at least towards the fed's target the vast majority of cfos believe the economy won't get to 2% target inflation rate until 2025 similar to what we heard from chair powell yesterday councilmembers much more dovish than the broader markets with 50% who say they think the fmoc will keep rates unchanged at the july meeting 36% say the market will change

they're not ruling out a recession at this point with nearly a third of respondents predicting a recession may still happen in the second half of the year with mother third saying it could be in the first half of 2024, carl so, more pessimism. >> a little bit. >> just reading between the lines. again, these are the people who are usually tasked with assessing the risks and keenly focused on that. >> we will see i wonder how much is counting on either a soft print on cpi coming up or how much of the recent housing confidence and claims numbers we've got this week are rolled into these results. >> well, interestingly, this survey took place in mid-june. there is a bit of a lag getting survey results the economic data that's been churning out has been very resilient. you know, i just have to wonder if these cfos are kind of looking inward and saying, you know, inflation's still affecting my business, still affecting my margins and that's

the lens by which they're sharing these results which, of course, is a different lens than we get for market participants there's a pretty interesting disconnect. >> as we get closer to year-end, it will be time to think about budgets for the coming year and a lot of spending decisions will get made, especially in the next six months if you're on a calendar year. pretty interesting. still to come this hour, mark mobius on the opportunities he's seeing overseas, particularly in india and why the recent turmoil in russia might be bullish for china plus, we're awaiting virgin gala galactic's first fully commercial space launch. morgan brennan is new mexico for that. >> reporter: i am, indeed. we are moments away from the launch of the first commercial spaceflight for virgin galactic. it's an air launched mission on the other side of this break, we'll bring you that moment and r veorisatrsand why th mte foinsts. stay with us

you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory. i'll show you rock star! be a finance and hr rock star. workday. for a changing world. billy idol just stole your golf cart! 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, and where together, we work to help move everyone's financial goals forward. pnc bank.

welcome back take a quick look at the banks leading the markets following the stress test results.

goldman sachs, wells fargo among the top performers today you know, all of this is about essentially how their capital stacked up and what kind of capital return they'll be able to engage in, which we should know as soon as tomorrow after the bell, the types of buybacks and dividends they will be able to announce. that said, banks largely will be conservative on this front given the onslaught of regulatory information they're expecting later this summer, later this year with basel 3 revisions as well as potential new rules regarding capital after the march turmoil that we saw within the regional banking space. coming up later this hour, the ceo of serepta therapeutics, the fda approving their new drug, but the stock falling on that news. we'll remain on ipo watch. three companies going public at the nyse we'll bring you opening trades

as we've worked back to almost session highs. dow's up almost 200 and just about 12 points from 4400 on the s&p. 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.

welcome back to "squawk on the street." virgin galactic with commercial spaceflight. morgan brennan is live from truth or consequences, new mexico >> i'm at spaceport america. we're still awe few moments from actual launch where the space plane will detach from the mother ship and power up its rockets engines and hurdle to the edge of space to an altitude of about 50 miles above earth, the u.s. defined start of space, to have its actual spaceflight just a little bit of background on why this is so important. virgin galactic with this mission, galactic 01 mission,

this is the fully revenue-generating spaceflight nearly two decades in the making for sir richard branson's company that he founded in 2004. what's so unusual about this launch process is virgin galactic does these air launches in this burgeoning commercial human spaceflight market, other players like direct competitor blue other begin and spacex and eventually at some point hopefully soon, boeing, they do a more traditional launch with a rocket and a capsule off the ground, off a launch pad with galactic, they launch from the air, which makes it so unusual. what's going to happen is you have a crew of six, including two company pilots, one company astronaut instructor and three paying customers, members of the italian air force. this is a research mission they'll conduct scientific experiments when this actual boost, this actual launch does happen in the next couple of

minutes and they fly to that suborbital space area. they'll conduct these exp experiments in microgravity for a couple of minutes, experience weightlessness, see the curvature of the earth and strap back in and it will glide back to earth and land here on this runway behind me we're continuing to monitor the situation right now. it is such a milestone not only for virgin galactic but for this human spaceflight market that we've been talking about for so long but is now meaningfully starting to take shape >> it is so difficult to get right. they've certainly had their setbacks big day. hope everything goes well. we'll come back to you in truth or consequences. after the break, key cuts disney while citi says buy netflix ahead of earnings. we'll get that media bull/bear debate. june is pride month and cnbc is sharing all month long and sharing stories of corporate leaders with you here's bank of america's nikki

katz >> you never know what someone experienced that morning before they showed up to work or what they're dealing with in their personal life. so, when we all show up to work, we should do so with grace and with compassion for one another. even now in 2023, the struggle for our lgbtq plus teammates, family members and friends continues to be very real. it's important to take a moment during pride month but, frankly, all year-round to celebrate the victories and show our support for the ongoing struggle somebody would ask her something and she would just walk right past them. she didn't know they were talking to her. i just could not hear. i was hesitant to get the hearing aids because of my short hair.

but nobody even sees them. our nearly invisible hearing aids are just one reason we've been the brand leader for over 75 years. when i finally could hear for the first time, i started crying. i could hear everything. call 1-800-miracle and schedule your free hearing evaluation today.

hello, everybody, i'm contessa brewer with your cnbc news update. former vice president mike pence made a surprise visit to ukraine today. it made him the first republican presidential candidate to meet with ukraine president volodymyr zelenskyy during the campaign. pence's visit comes at a crucial moment in the war right after the wagner mercenary group's rebellion and deadly russian missile strike on a crowded pizza restaurant. french police prosecute mobilizing 40,000 officers today to stem violent riots across the country. paris saw a second night of unrest after the deadly police shooting of a 17-year-old boy during a traffic stop. officials say the officer who shot the teen is under investigation for voluntary homicide. two big decisions from the supreme court today. the first bars affirmative action in college admissions

the second was a unanimous decision on a religious case the groff versus dejoy case was brought by evangelical christian mail carrier who asked not to work on sundays and the court sided with the worker saying they can make undue hardship on the employer rather than just a minimal one. >> thank you. let's get back to morgan in new mexico morgan >> hi, leslie. that's right we're expecting this boost to take place any moment here it's going to be happening over my shoulder due north. it's a little cloudy here so you can't actually see it from the gr ground on a clear day you could see this launch take place with your own eyes from the ground you can see behind me, though, we have a monitor that is keeping an eye on everything it's operating on a little bit of a delay we're being told we're less than a minute from this moment. you can see the pictures on your screen that is the crew inside the

cabin of vss unity getting ready for this moment of launch. you have three paying passengers, members of the italian air force, and you have a virgin galactic member, an employee, an astronaut instructor who's making his second trip here to the edge of space. once this boost actually happens, they'll start traveling at three times the sound of speed mach 3 to suborbital space to conduct their experiments yeah, i think we're still waiting here for the moment of launch leslie, we're trying to time it, but that's the thing about space. there's a lot of rocket science involved but it's more of an art when it comes to the actual moment of launch. >> and weather conditions, too, morgan you mention it's cloudy there. was that an important aspect of getting these vehicles off the ground >> no, not at all.

this flight took place exactly when the company was targeting, which was 10:30 a.m. eastern you have that mother ship taxi behind me on the runway, take off into the air and fly to altitude of 45,000 feet, which is about where they are right now as we do get ready to this this moment of launch. all in, this trip to space including the flights, including the actual launch, including the weightlessness and the trib to suborbital space and landing will be 90 minutes, which will be different from blue other begin, owned by jeff bezos and a direct competitor. that trip lasts about 11 minutes. this all in takes longer because it's a different -- it's a different process, but it is certainly a moment for this company, as we do continue to tap dance here and await this moment i'm told it's going to be about 20 seconds here until we

actually see those engines fire up and we see this boost happen. we're about 10 -- less than ten seconds away see if we can listen in here there it goes. >> that's turning, pulling the nose up. and trim is set. we're now traveling at approximately mach 1.4 there's max q, maximum dynamic pressure on the vehicle. those on board are experiencing about 3gs at the moment. >> so, what's happening now is this spaceship is accelerating as it makes its assent to altitude of about 50 miles, which is the u.s.-defined start of the edge of space

i've said it before already on this hour and on our air across the day, but this is very much a major milestone. a lot is riding on this for virgin galactic. it's nearly two decades in the making there have been a lot of delays and setbacks along the way what's so incredible about is that this is a publicly traded, pure play human spaceflight company. nothing else quite like this from an investor standpoint. so, this is a moment not only for the industry, not only for the company but for investors that have been on a wild ride with the stock over the last several years as well. you can see the crew there unstrapping. not unstrapping. there you go now they begin the process of the research of this mission

experience the weightlessness. another moment, guys another moment for this new era of special space unfolding on your tv screens in real time >> leslie, we're going to continue to monitor this i just want to note that we'll have the ceo of virgin galactic exclusively in my hour, "closing bell overtime" to talk about this milestone, unpack this flight and discuss what is next for this company given the fact that this now begins commercial service. you're now seeing revenue generation for this company, but the path to profitability is one still years out.

>> to your point, morgan, a publicly traded company that now has full commercial exposure to space. thank you very much for following it back here on earth, three ipos getting set to trade here at the new york stock exchange. bob pisani tracking all of the action we'll see if gravity holds here on the new york stock exchange. >> well, virgin galactic is flying right now, and so is saver value village. priced at $18 above the trading talk now $24 to $25 getting closer to opening. kodiak priced at $16 it's $15.50 to $16 right now and fidelis priced at $14, it's $13 to $13.50. let's turn to pete who runs all the market-making for citadel on the floor of the new york stock exchange the big mover, savers value

village was $24 and now $24 to $25. that means things are getting closer when you narrow the range, right >> we talk about book building, that's the unique process of the new york stock exchange. you can see $24 to $26 and started to drew in supply. now we're indicating $24 to $25. we're looking at the higher end of the range as we tighten the range, we're getting closer to open we have a thrift company, savers value, a gas company, kodiak and insurance company, fidelis pricing differently, two below the range. savers value above what is this telling us, three different industries we're talking about right now? what does it tell us about the ipo market >> i think the ipo market is beginning to show some recovery here having three ipos in a single day i think right now institutional buyers have the ability to be selective about what they're participating and the valuations that are there the one thing i would say about the public markets, bob, is what's successful about them is

each of these companies has the ability to access liquidity. >> lower price is not necessarily a bad thing. the important thing is the market is opening up that might mean prices are higher a few months from now rather than high valuation at the start. >> that's right. when you think about t you have $1 billion being raised in the public market in three transactions, that's a significant difference from where we were three months ago in the public markets. >> the buyers, of course, are happy. they are pushing back on some of the deals right now. that tells me that the market is opening but selectively and the buyers are very selective about what they want and don't want at this point that's not necessarily a bad thing. do you think july is going to see ipos traditionally it's a slow month for ipos but maybe this is different if companies can see opportunities to open up and get into the ipo business? >> i think there's more of a chance of the ipo market being more active than three months ago. obviously, the market can change easily

as of right now, there are companies -- more companies exploring the ability to come to the public markets than there were, say, in march or april. >> everyone keeps asking me, where's the unicorns, the reddits, the arm, panera bread, but this is how it starts, niche companies, like $300 million deals, but this is how the market starts to open up when are we going to see the larger companies >> this is the definition of green shoots this is the growing process of the ipo market coming back to life i think in the next 6 to 12 months you'll see larger companies testing the market i think the ability for them to come to the market and raise capital is always going to be important and there's never going to be a perfect time the idea is there's some ability to access liquidity in the markets which is promising. >> how close are we to savers value opening up in. >> i would say in the next 30 minutes. >> carl, i'lling down here, of course, bring you updates.

butwe're getting very close. >> we have our eyes on space and the floor, thank you let's get media notes catching our attention today first up is key taking disney down to sector weight. the firm gives five reasons, including domestic park expectations appearing high, stalling dtc subgrowth challenges surrounding espn's move to disney julia boorstin opens with this self-deputy ra indicating line that this is the bottom but they have their doubts. >> the theme park business has been such a consistent driver of disney's top and bottom line in the past toum couple of years, surging coming out of the pandemic they say the numbers more recently are not looking as good as some had hoped. there's the question how resilient will it be if the economy turns lower? and how dinner shated is disney plus and the hulu business from

other streamers? this analyst note saying, hey, maybe they're not so differentiated maybe their ability to build customers is not looking much better than the likes of smaller players, whether it's a paramount or netflix on the larger side. i think there's this question here of also so many different types of uncertainty right now, not only how are they going to manage this spinoff of espn plus eventually but also what will the future of hulu look like they're expected to buy out the remainder of their stake from their parent company, comcast. but i think this is pointing to the fact there's a lot of uncertainty and some major structural challenges to the street challenges that are not just unique to disney. >> were you surprised, julia, at sort of the downbeat commentary about park attendance and park margins going forward for disney >> i was surprised because i took my kids a couple months ago in the park was both packed and

seamless in its operations that i figure this is -- we were there on a prime day and it seemed like everything was running smoothly and there were lines when we left at the end of the day. i think that's the question. the question is, how strong are park attendance? they made the decision to shut down their star wars hotel in florida. there are also these questions about margins when they have to deal with the labor issues, paying their employees more. i think it's a very complex issue. it's not just about demand i think in all of these situations it's complex. on the streaming side they have to figure out how to manage a lot of these transitions but they also have to make sure they're charging just the right price point. what is that sweet spot? how much can they afford to raise prices without alienating that user price and lean into the tiering of that model and the fact they can offer a lower price point if they have add ver sizing there as well

the theme park business has been so robust. we'll see if it turns down. >> speaking of streaming and tiering, on the flip side there's citi and they opened this positive catalyst on netflix. they go to $500. seems like the sell side wants to use the ad tier to catch up and raise their target. >> yes this move was all about the opportunity in advertising saying the changes netflix has made about cracking down on password sharing are less relevant and all about that ad opportunity. they raised their expectations about how many millions, tens of millions of incremental new subscribers will join the service because of the ad tier i think it's really too soon to say. i was just at the cannes advertising festival even though netflix had a presence there and working with advertisers, there was still a sense the ad inventory in terms of the number of people watching the ad-supported content is still very much in its early days so much of that growth potential will come from overseas.

being able to introduce a very low cost version of the service to attract a totally new demographic to netflix, it's a different situation here in the u.s. where you're really using that ad tier to more appeal to consumers who might be trading down or maybe they were reminded they were borrowing their cousin's password and have to come up with a new option. but, yeah, this is all about the ad opportunity over the long run. >> certainly increases the total addressable market when you can crack down on that thank you so much. really appreciate it. just want to take a quick look at apple right now. we are on $3 trillion market cap watch. the number we're on alert for is $190.73 a share. we are less than $1away. that stock up about 0.3% at this point. normally an fda approval is a good sign for a biotech companies but shares of serpta

therapeutics falling we'll get to why that may be the case when the ceo joins us. watching micron. trying to call the bottom on the memory chip market after beating on q3 off session lows as the dow is close to session highs up 225 (sirens) [due at target in 5!] copy that. make a hard left down the alley. network's got you covered. [please confirm requesting back-up.] -changing route. -go. roadblock ahead. ...back up, back up... reverse! reverse! next level moments, we're 30 seconds out. need the next level network. [north corridor, hurry!] -coming through! -or 3, let's go. the network more businesses choose. transplant received. at&t business.

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. welcome back let's turn biotech last week the fda approving gene

therapy to treat a rare form of muscular dystrophy available for select pediatric patients and cost north of $3 million but shares plunged last week on news that the fda could withdraw its approval later this year pending the results of an ongoing trial. joining us now in a cnbc exclusive, doug ingram his first interview since the approval was announced doug, thanks for being here. obviously the fda has some jitters about this approval process. what is the fda concerned about? >> i'm glad i didn't bet someone on the post-approval stock, i would have lost missably the stock did go down. it's recovering right now. we've seen this recently, you know this better than me, market efficiency, sometimes we have a fast money, sell on news

concept. if anyone speaks to the analysts or large and sophisticated investors that have followed muscular dystrophy, we have had nothing but universal excitement about this and rightfully so this is the first gene therapy for muscular dystrophy is a monumentally important one this is our fourth approved therapy and so for those who wonder about us to make success, i would look to our performance. over the last six years with our three prior approvals, without a single price increase, we have been growing net sales at about a 40% annual compounded growth rate with those three prior approval, not including elevidys, we'll do $900 million this year alone. elevidys has an opportunity to

be even more profound than that. if you think about biotech, if we're successful in our plans and achieve our goals by the end of next year, we should be profitable that really makes us a unicorn, in my opinion. you'll know that it is fairly rare for any biotech to have commercial stage, but to be profitable is even rarer still as a mission-driven organization, we can do good and investors good and patients. >> i want to discuss that profitability in a moment, but one of the reasons the stock sold off is the fda essentially said it may withdraw approval of this drug. is that a major concern of yours? how confident are you that this will be approved >> well, i have enormous conviction in this therapy not only do i not envision that is a genuine risk, that's always a theoretical risk for accelerated approvals which is a

brilliant mechanism to get-life saving therapies to patients as soon as possible i think we'll be successful and broaden this label in the near term to cover the vast majority of children with duchenne muscular dystrophy we have a confirmatory trial that will read out before the end of this year we have a commitment with the fda that is our next trial, if successful, they will prioritize reviewing that trial and then broadening we want to do that by as early as next year if possible i think that's what's going to happen generating so much excitement and so much hope for these families and patients living with duchenne in the u.s. and around the world. >> a lot has been written about this golden age we're supposedly entering on alzheimer's and cancer and obesity and muscular dystrophy.

i just wonder, are you of the belief regulators are going to let that happen and provide minimal friction >> i think that they need to and they will. there is -- the senior levels of regulators like the fda a great vision for the future of things like gene and cell therapy we need that and the issue is this over the last 30 years, when we think about genetic medicine and genetics, there's been an explosion in the stock the amount of progress that's been made in the last 30 years is breathtaking. and now we need to translate that science to practical solutions that help patients not some distant point in the future but right now duchenne is a classic example. these kids are being harmed every single day and we just have to match the urgency they need with the urgency of drug development and the regulatory process. and i am hopeful and confident

in the future as it relates to that. >> absolutely. but at that $3.2 million price tag, is this something the health care system can afford? will the children who need this drug be able to access it? >> i am very, very proud of the approach we've taken with respect to elevidys. remember, gene therapy is different from chronic therapies. it's a one-time therapy. we literally deliver the treatment and then that treatment is provided over, if everything goes well, the life of the patient let me use a metaphor. we stand in front of the house and you can buy this house from $50,000. or you can rent this house for $10,000 a month. it's only that person with horrible math skills that imagines the $10,000 and less than $50,000 we need to think about it that way when we think about these one-time therapies in the long

run. in the long run, they will be cost effective and beneficial to those who have to reimburse for therapy. we've done a very sophisticated cost effectiveness analysis. we've done something that should be a blueprint for the future. we published it in a peer-review joirnl last month and then we put the therapy below the bottom end of its cost effectiveness.

at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank. i remember being on aau trips, high school games. my mom would always say, "you need to fuel the body and you need salt." i would always be the kid not cramping, ready to go. fast forward 20 years and i go from eating salt out of my palm to drinking lmnt.

signaling this space is so hot even fierce corporate rivals are willing to invest in the same company the only company that says generative ai startups that have reached unicorn status like cohere, and tlopic another massive round announced. all the usual ai billionaires, hoffman gates said all these do various things to generate ai

and image tools to hardware setups its content creation for marketing and advertising just coming a very prouded space. if you are thinking this is frothy, you are not alone. the race is on they're all willing to spend huge amounts of money to find the next open ai >> in the space, deirdre, is there anything not in ai that's getting $100 billion round these days it seems like it's very, very specific in a vc world >> that's a good question. maybe a few months ago everyone is pivoting to ai even if you weren't an ai company a few months ago, you are now in some way. so that is really where it is the hottest but it's so different. you think about the late stage side of this market, the names that we're looking for ipos

from, they've seen their valuations come down, right. so if you're not an ai company, not only are you maybe -- maybe you don't need to raise money because you raised it in 2021 but they're starting from higher points as well >> pretty fascinating. there's the ai world in there. deirdre, thank you deirdre bosa with "tech check. interesting action as we're close to session highs i keep thinking about the narrative that was written earlier in the week and that was quarteren, month end, will result in rebalancing. there will be maybe pressure in terms of positioning tail winds. not happening today. >> definitely not happening today and we have the rise of everything else which is really mixed here with regards to the ipo market indicated to open higher and then looking to open lower on a first day for ipos, bigger than

we've recently. >> as santoli pointed out, you wouldn't necessarily want to see the market for ipos go from 0 to 60 in a day. by the way, nike tonight, the week is not over until you get pce tomorrow which will be key in light of what powell sold area yesterday. >> absolutely. a lot more still to come let's get to the judge, post 9 carl, thank you very much. welcome to "the halftime report." i'm scott wapner front and center this hour, rally watch, stocks trying to extend their monthly gains we'll debate what lies ahead as one of our committee members makes several major moves in this market. joining me for the hour today, josh brown, stephanie link, rob sechan and jim lebenthal i want to show you what the markets are doing. we do have a pretty good day going. the dow is good for 231. s&p higher by a third of a percent. the nasdaq is a fractional winner we're watching yields. we have a lot going on three ipos at the new york s