...is someone who can make the connection. at ice, we connect people to opportunity. - [soldier] take a look at this! - they've left us a gift. - [soldier] i think we misjudged them. - i love horses. (birds chirping) - [soldier] we should open the gate. - let's see what charlotte thinks. - [narrator] at crowdstrike, we monitor trillions of cyber events to detect threats and prevent breaches before they happen to keep your business from becoming history. we stop cyberattacks. we stop breaches. we stop a lot of bad things from happening. crowdstrike. protection that powers you. welcome to "power lunch. alongside kelly evans i'm jon fortt. the debate over tesla's full self-driving claims heats up again. elon musk thinks it's the future

of the company and the reason the stock is valued the way it is the men whose car ride is at the center of the debate the supreme court outlawing affirmative action colleges can no longer use race as a factor it determining admissions we'll look at the impact. >> a lot of fallout already but first let's get a check on the markets. dow up 213 points as it leads the way. the russells are strong. s&p up 8 financials are leading the way after results of the stress tests after the bell yesterday wells fargo, jpm adding. we're watching three ipos. savers value village the only one to open above its listing price, while kodiak and fidelis are below that level, a muted open we'll say for a muted ipo market this year let's turn our attention to tesla. the stock on a tear more than doubling inching back to the

trillion dollar valuation. a sky high metric for a car company that has caused controversy for investors and analysts tony sacconaghi told us yesterday he thinks the valuation is too rich and the self-driving technology isn't that big of a deal elon musk told david faber something different. take a listen. >> tesla is the only car company selling cars where we believe the car is capable of achieving full autonomy with a software update the value of a fully autonomous car is, we think, perhaps five times for valuable than an autonomous car. >> why >> the ability of a faster car is 10 hours a week it does look like it's going to happen this year. >> why >> we're now at the point where the car can drive on highways and in cities where a human

dimension is extremely rare. so i mean, just -- i was able to drive for several days just dropping a navigation pin in random locations with no interventions and same in san francisco which is a difficult place to drive bus lanes, one-way streets, you know, quite a challenging homeless situation - >> you were driving recently in san francisco or the car was >> i have been there quite a lot because twitter is headquartered there. >> musk believes the value of at the is in the full self-driving and tech is closer than people think. new controversy may be arguing against that as a recent video seems to show a full self-driving tesla almost blow through a stop sign. there it is. we reached out for comment the video from the perspective of dan owe today a tesla investor ross gerber was behind the wheel and released

this video moments ago ago >> it doesn't want to run her over. >> we're not going to shoot the video. >> joining us now are two people who were in that car in the video. ross gerber, a tesla investor and dan owe today founder of the dan project. a long-time critic of tesla, in a battle with the company over it thank you for joining us since we know the position in the stock, just to lay the table here are you short shares of

tesla or have any financial relationship here? >> no. own no shares no puts no calls no anything. >> why did you get -- in your bio it says you're sort of goal is to see full self-driving eradicated why >> not eradicated necessarily. if they can make it work i'm happy for it to come out it can't be out there on the road this is the worst piece of software i've ever seen in a safety critical product. it has horrendous safety defects that are simply intolerable and it is not converging on success. they're not fixing the problems. they're just still there seven months ago i told them that fsd would blow past a school bus with the red signs flashing and stop sign out and they didn't do anything in february i made a super bowl commercial showing the same thing and they ignored it. in march, a kid in north carolina stepped off the school

bus and a tesla on self-driving tesla, ran past the flashing lights and ran the kid down and put him in the hospital, and he still is not fully recovered and they've done nothing to fix the fact that it blows past school busses at -- it's insane. nobody would build a product like that. it's totally irresponsible. >> ross, did you get dan in the car? how did the car ride happen? >> dan agreed to go in the car so we went up to santa barbara and i let him pick wherever he wanted to drive as long as it was a real drive and a real environment, and he said drive me to the office i said fine. we got in tesla and engaged full self-driving and drove us to the office perfectly you can see it all in the video. we went through 13 stop signs. eight humans avoided and six construction workers at a site we went by fire trucks, schools and everything and the drive was perfect. in fact, really the challenge that dan is dealing with is the

fact that this narrative is false. everything he's saying is a bunch of garbage really, the worst part of it is he's saying i'm blowing a stop sign we didn't blow. you know, i was driving. so if he really cared about people's safety he would actually focus on the real things that need to be improved with full self-driving which there are many, which he hasn't mentioned once just a bunch of false information all this high per poly in big words for a software that is good and you can see it in the video with dan right there. >> i don't know. i don't know which one -- don't we need a driving test for the software for self-driving? i mean -- >> we just drove through santa -- >> i don't mean your test. there ought to be a standard test where it's got to run a course, certain number of times successfully and repeated so we as a society can trust that this software can actually drive.

it's like saying that a.i. can be trusted to solve business problems or write stories on its own. you have to check its work doesn't it have to be certified. government has to say here's the driving test software. dan, pass it >> absolutely, positively, and that test must include that it does not go past school busses with the lights flashing and run the kids over. it did it. we said it was going to happen we -- a full page ad in "the new york times," a super bowl commercial for god sakes and four months later they've done nothing. that should be in the test and off the road today. >> ross, can you agree there ought to just be a standard driving test not ross and dan went for a ride an the rest of us have to take your word for it, how the ride went society needs to know that this thing is being tested at a level we can trust it like a submersible or like a teenager on the road? >> jon, i think my video shows what you're talking about -- >> not your video.

like your video is not -- let me finish. >> the country to trust right tesla -- >> let me finish i agree there should be a standardized test for autonomous vehicles before we say it's level for autonomy you don't have to pay attention. 100% agree but for the car to learn thou how to drive it has to learn through real world experiences like the stop sign where the sign itself was 30 feet in front of the line. the speed limit on that street is autotoo high it's 35 and sho be 25. what we found was a dangerous intersection not a problem with full self-driving. >> you're conceding it missed the stop sign? >> the stop sign was 30 feet in front of the line. so for the car, it creates a certain level of confusion because of the way the intershn w was designed. >> you have to operate on the roads that are there. >> right it learned

so you taught -- >> right now you don't get to remake all the roads and drive on the roads when your product is unsafe. and does not work. >> i just want to kind of get on the record, regulators were told have taken a sort of cautious approach to this and i don't understand how we can describe that when the cars are on the roads everywhere and this is permitted. what are the current regulations, dan, around people being able to use full self-driving to the extent to which you guys did and elon musk has described and many others? >> the current situation is, that if it's called a level two car, then there's no regulation, no testing, no analysis, absolutely nothing you can do anything you want if it's a level four car which means no driver, then there's a bunch of rules and regulations and you have to go through the state and it's a lot of work google and way mo and cruz have done that and they have self-driving cars today.

>> okay. >> but the problem here is what elon musk did is brilliant, wrote into the manual you have to keep your hands on the wheel at all times and said it's a level two problem, there's no -- you have to have your hands on the wheel. >> so what happened -- >> the stop sign - >> that's what happened. >> watch the videos. >> let's bring this back to what matters for investors here if this self-driving is really going to be level four self-driving going to work, whose insurance is going to pay when the inevitable mistakes get made software makes mistakes, even great software we need it to make fewer mistakes than humans, right? is it tesla's insurance or the person in the car who trusted the software was going to do what it says seems like maybe it's tesla's insurance that should pay when the software makes a mistake >> that's correct. that's why tesla has an insurance company right now and is actually track all of our

driving -- tesla drivers driving and scoring it so that they are actually offering the insurance directly to tesla drivers and my assumption is once they go to level four they will take the liability if there's an accident with a level four vehicle that was their fault. i have every confidence that as this software is developed and widely adapted we will save tens of thousands of lives. what dan is doing is he's hindering the -- he's trying to hinder the advancement of life-saving technologies because he's talking about a fake accident that never happened with some kid at some school bus. >> dan -- >> it's ridiculous 100 people are going to die in regular cars and we have to stop it. >> the current system is not great. we all grant that. dan, you mentioned cruise and waymo and they have autonomous vehicles on the road in san francisco and the likes. are they included amongst the players you think are bad actors here or do you think their technology is responsibly being

deployed >> they are a thousand times more responsible than tesla which is reckless. it's not a question of whose insurance pays who goes to jail when you ship a product with a bug in it so grotesque that everybody knows you don't pass the school bus and it's been that way seven months and they've done nothing. that's criminal. the kids are going to die and people should go to jail, fix the software or take it off the road right now or somebody is going to do it for you. this is ridiculous. >> dan - >> the software -- >> toyota wouldn't do this nobody would do this. >> gentlemen, thank you. appreciate you both coming on to try to get to the bottom of this ross and dan we very much appreciate it >> it's an interesting question here, if tesla does end up being liable for mistakes, how much do you think a jury of, i don't know, if it's software peers but of human beings -- >> chatgpt not on the jury. >> is going to award somebody

right for the tesla that hit their kid in the road when it inevitably happens how do investors factor that into the stock. >> that's a great question. >> coming up, a massive decision by the supreme court regarding higher education striking down affirmative action programs at harvard and unc and everywhere else what impact could this have on the college admissions process and could it trickle down to the diversity in corporate america regulation nation, the final day ftc's case against microsoft a activision is taking place but this is the latest example of regulators taking a heavy hand with corpsorations or is it? reports that could be targeting amazon with an antitrust suit as well "power lunch" will be right back every shot is an opportunity. and success requires drive, resilience, - wow. - get it there. and sometimes luck. but what if luck had less to do with it? what if we had the tools to help us practice smarter,

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the supreme court ruling against affirmative action finding it unconstitutional to consider race in university admissions. we heard from president biden a short time ago saying he disagrees with the decision. for more on how this will affect college admissions and the workforce the colleges send to corporate america we bring in danielle holly walker, president elect and danny cevallos, legal analyst. welcome both of you. danielle, i wonder, if there are some potential impacts of this that everybody who is reacting

might not realize in that education is a crucial to the future of the economy in this cont but will college be able to balance their classes based on maybe economic factors or geographic factors that are measurable, instead of using race and achieve a similar result >> you know, i think we have some precedent for this. we have places like california and michigan that have been trying race neutral alternatives for a long time and we've seen it does not make the same difference that being able to consider race as one of many factors does so, for example, when native american students we saw them fall almost 90% in terms of admissions in some states. this affects most students of color who are black latino, latina or native american, native hawaiian and we'll see drop-offs in those enrollments. >> danny, what do you think happens to those students who

are not getting in to the schools that they used to get into i don't know if you know the statistics on this, but are they just not going to college? there are other paths such as community college, to a four-year institution, that aren't followed that often but are really very cost effective could we, in effect, end up pursuing more practical paths to higher ed to this. >> when it comes to the student who narrowly missed getting into harvard that student is probably not going to go to welding school that student might go to dartmouth and have a wonderful life and career. i say that because these cases really addressed a narrow issue, whether or not harvard and unc's admission policies violated the equal protection clause. in theory and i stress in theory, the case which held that diversity is a compelling interest that warranted the use of race in admissions policies is technically still good law.

the reality is, as recognized by justice tomas and sotomayor that is overruled because harvard and unc's admission policies which they themselves argued barely considered race, those policies did not satisfy the strict scrutiny test of the equal protection clause. >> danny, what are the implications for workplaces that have pursued quota based hiring goals of minorities in the recent years >> that's an interesting point because constitutionally we've carved out at least historically this one place, higher education, not even k through 12 education, but higher education is the only place where the supreme court has said starting and then in grudser, diversity is a compelling interest, diversity on college campus is a compelling interest that warrants sometimes the use of race conscious decision making

that case didn't -- the supreme court didn't hold that for any other part of the workplace or k through 12 education in a sense, thise is narrowly tailored itself, but it also has implications for the people who graduate university and head into the workforce. >> danielle, i wonder if people realize how much the college admissions process has changed in a generation over 20 years? used to be people applied to three or four schools and then, you know, picked one now a lot of young people are applying to 20 schools and the challenge for the schools is to figure out are these young people really serious, who can we actually get the school that really cares about curating a diverse class, can't they still do visits through zoom conversations, figure out who these students really are across all kinds of dimensions and make their pitch to be the school that they choose can't they recruit still a

diverse class? >> i think college admissions as you acknowledged is a complicated realm and a holistic process. there are factors that colleges and universities look at and we know that colleges and universities will still be able to value diversity and i think danny made a point that's that it's diversity of all kinds. what supreme court did today was really tie the college and universities hands behind their back and say yes, you may want to construct a diverse class, but there are some things that you can't do and can't consider. chief justice roberts did say you can look at an individual's essays and they can talk about the way that race has impacted their lives, but it must be in a way that does it on an individual basis i think that really discards the way that colleges and university really do business what grudser did is allow colleges and universities to have deference and you didn't that that today by the supreme court. they essentially are saying,

even well-considered plans like harvard and unc that considered race as a small factor can't be used we will see college and universities get creative in terms of recruitment, offering the ability for students to visit all kinds of tools we have at our disposal to help students of all backgrounds understand the benefits of our individual institutions. >> one of the more damming i'll say things that the opinion brought up, the majority opinion, was that it is really hard to pin down exactly what the schools are considering that it was over broad there was no real category for middle eastern students as they were considering diversity, asian was one broad category with no distinction between southeast asian or east asia and asia is a big continent. does this in a way also call on schools to really collect better

data and connect the dots between what they're trying to achieve, say they're trying to achieve and then measuring the outcomes >> i'm glad you brought up that example. one glaring example was that there isn't a category for middle eastern students. of course different east asian, south asian, they make no distinction. that itself is over broad. it's over broad, it's not well defined and that was what the majority opinion pointed out that led to their conclusion that this goal of diversity is not furthered by race conscious decisions. the other thing to consider is, danielle talked about some of the -- when schools were allowed to use race how the numbers went up or down but ultimately the challenge here for the universities is that no one ever really defined what exactly diversity is or how you know when you've achieved diversity and say i'm finished this is the only - >> i don't mean to interrupt but workplace implications seem to

be saying and use numbers to say for the percentage of african americans students accepted, percentage of asian, if data were demonstrable in a work place where one category however broad the category was having a harder time getting hired versus an easier time could a case be brought on that base this? >> probably not. that's a specific reason because we, the supreme court, has carved out this very unique space, higher education only these tests diversity all of these compelling interest tests and scrutiny, only apply as they do here in higher education. they don't apply in the work place. there are anti-discrimination laws in the work place there are anti-discrimination laws and the constitution restricts the government from discriminating all kinds of antidiscrimination laws in the context of using race based admissions, this line of supreme court case law has only ever applied to higher education which is a bit of a paradox but

that is the state of affairs as we have it. >> perhaps the federal funding that sort of thing is a big reason there's scrutiny of or the importance of that for society. thank you both danielle and danny where does the c-suite stand on the roll of a.i.? a cnbc-cfo council survey, leaders are embracing the technology cautiously. that ahead and more on "power lunch.

welcome back to "power lunch. let's turn to the bond market now where yields have been jumping the 10-year, 3.85 pushing the mortgage rate over 7% rick santelli joining us from chicago. rick >> yes there was good reason to see the jump in treasury rates it was the data this morning whether it was the stronger gdp on the third revision, better consumption or look at the chart, this is a five-year chart of the personal consumption expenditure quarter over quarter it peaked at 6%, but that was in mid 21 that was two years ago it's at 4.9, about as expected, a little lower in the rearview mirror if you open the chart up, 1983, when the comp of 6% goes back in

time to. you can see how sticky it is the markets noticed. look at 2s and 10s together, how they jump when the data hit at 8:30 eastern it was also initial continuing claims, better behaved but as many pointed out like peter at cnbc, june 19th holiday may have kept states from getting it in not to mention the seasonality issues that might not all be worked out we'll wait until next week to see if it gets smooth again. 2s and 10s on pace to close at the highest yield since march 9th as you see on the chart. if you look at the 2z, 10s spread minus 101 minus 108 the most recent inverted we were challenging that but seen things ease back a bit and not necessarily yields going down the long data yields catching up the short data yields taking some of those inversions out all things being equal we have broken out on a 10-year any kind of a close today above 382

probably gives us a test of 4% kelly, back to you. >> thank you, rick something if 4% is next. julia boorstin for the cnbc news update. >> kelly, three families filed a class action lawsuit over the theft of their loved ones body from the harvard mosh. they accused the university of abandoning the bodies instead of carrying for the remains after the morgue's manager wife and several others were indicted for trafficking stolen human remains. new government data shows pedestrian deaths have shot up 77% in the u.s. since 2010 auto report from the governor's highway safety association found 20 people were killed each day last year while walking. road safety experts think the rise is because of pandemic fueled reckless driving, more people buying bigger vehicles and more people moving to the suburbs. where roads are not always suited for pedestrians.

a law that took effect in florida this week prohibiting some chinese citizens from purchasing property is unconstitutional the doj said in a filing the law violates the federal fair housing act and equal protection clause florida governor ron desantis signed the bill into law in may. it places restrictions on some citizens of cuba, iran, and russia back over to you. >> thank you ahead on "power lunch," oil prices down 12% this year and there are growing concerns at the start of the year over rising interest rates with impact on demand what should we expect in the second half. we'll rhtacbeig bk. i was told my small business

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. welcome back to "power lunch. big moves in energy. we have crude on pace for its best month back to last october even though up 2%. nat gas on pace for its best month in a year up 20% here to talk about what's driving the gains is bill perkins, ceo and head trader good to see you. broadly speaking a tough market

for energy for the past 12 months do you see that changing >> i see it changes in crude oil and natural gas is going to be sideways crude oil is supportive despite concerns about a recession, although there are concerns about dark oil from iran, venezuela, and russia. seeing some data where the supply of dark oil is actually quite high. >> so we're almost in the best of times if everyone has been marking up their growth prospects and yet crude is not really participating is that because we just continue to see supply coming into the market or what's been behind that >> i think there's still a lot of fears about recession, economic monetary tightening, although demand is fairly stable we've had an spr release that put a lot of crude oil on the market and i think we've seen russia evading sanctions, iran evading sanctions. a little bit more in supply on the market than people could count by traditional means

i think that's keeping crude oil in check. >> it seems like the narrative should be shifting, though, right? even when we look at the gdp revision from q1 if we look at how the economy has nodmanaged o avoid a recession from this point, lights fl, ybe it doesn't happen this year at all, shouldn't things look a little better demand wise and therefore look better for energy >> don't get me wrong. i'm bullish crude oil. even in a monetary cycle if you look historically, not a financial crisis, demand grows i think crude oil is under priced, but we still have some psychological factors to get over and i think eventually we'll have to rash slun off demand with higher prices. >> let's get on the couch, how do we get over that psychological -- the people trading out there, what's going to be the trigger that changes the narrative and changes the

way crude and other energy is being traded >> toi think it's going to be inventories. we're in a show me phase inventories are quite low, not dangerously low, but they want to see them declining and that's going to change the psychology of crude oil and pricing on a go forward basis. >> what do you think is feasible for price to the upside, bill? >> i think we're going to have to go north of 100 to balance the market under the current supply and demand balance. we have pretty much robust economy despite a lot of the fear and naysaying that's been going on, we have population growth which is energy growth, and we don't have production growth and investment. we have u.s. dropping rigs we have a chronically under invested sector and so that doesn't bode well for growing demand. >> no. but $100 oil we're $31 away from

that, a 50% move from here >> yes and that's -- you know, things happen all of a sudden when you don't invest you don't invest in producing crude oil, when you have demand growing and the proverbial bathtub is running out of water eventually the market has to react. >> bill, i got to go back to the subject of ukraine the human toll and what's happening on the grown is most important. that said a year ago, the prospect of an open-ened war in europe was seen as financially devastating. has that changed it seems like what happened over the weekend, this war is likely - >> you know, i don't want to predict wars it was unpredictable but what

you do, bullish consumption of fuel oil, the sanctions haven't done much with russia in terms of moving the existing supply around we are having declines in russia production, but i don't want to look at oil through the lens of the war and how long it's going to go on i want to look at it through the lens of demand is growing globally every single year, irrespective of monetary tightening and investment in oil infrastructure producing oil is not keeping pace. >> bill, thank you for your time wherever you are i want to be there. >> aspen for the holidays. >> thank you. >> bill perkins. >> a news alert. comments from raphael bostic at a conference in ireland saying he does not anticipate further rate hikes this echos what we heard him say to reporters this morning in dublin he thinks the current rate is sufficient to get inflation to the 2% target and we can get to that target without a severe economic downturn.

also saying he doesn't completely rule out the need for further hikes but this is one area he does differ with the fed chair. >> quite a bit that's different from what we heard from powell. >> not a big market reaction stocks if anything are a little bit off session highs. >> a.i. perhaps the most behind investment on wall street right now, but not everyone agrees more than 40% of chief financial officers say they're trending carefully with that. we will dig into the key results from our latest cfo council survey next. (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.

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welcome back to "power lunch. seems like every company is getting in on a.i. in some way or another but the results of our cfo survey show a little more caution leslie picker how much more? >> yeah. jon, i thought this was interesting because when it comes to a.i., the cfos are treading carefully here for all the talk about how a.i. can boost labor productivity, enhance products, stimulate customer demand cfos remain cautious in our council survey we asked our members what best describes how their companies are investing in a.i get this, 41% said they are

evaluating a.i. but remain cautious, 18% said they have no plans to invest in a.i., and only 32% said their a.i. investments are accelerated. perhaps they still see the tailwinds a.i. is providing to the broader tech industry because when asked what sector will see the biggs growth in the next six months more than one third of respondents said technology that's a huge jump from the survey where only 9% expected technology to be the biggs sector grower. but the cfos we surveyed are torn about the impact a.i. will have on jobs 18% believe a.i. will create more jobs than it destroys but the remaining 82% of respondents were split between a.i. as a job killer and the notion that it's too soon to know what impact will be. guys >> but for cfos a job killer isn't a bad thing. hate to be morbid about it

cfos like to ax those costs out. i guess there are a couple ways of looking at those figures like more than 70% are accelerating or considering it but investors have to figure out what considering means? >> yeah. they're treading with caution. i think they're evaluating because it's so much in the news and when investors say what is your plan for a.i. they have to say something we're looking into it i talked to a bunch of people in the c-suites on areas a little outside the realm of what you would expect with regard to a.i. and they're like we have to look into this to a certain extent, does it make sense now, has the technology caught up with our needs but we're looking into the array of startups out there as well as the array of r&d that's taking place. >> got to have the case studies to see if a competitor is making

money or saving money with it. >> oh, yeah. >> coming up, moving to the sidelines. key bank downgrading disney on uncertainty for key businesses including espn we'll trade it and other calls of the day in three stock lunch flex (man) what if my type 2 diabetes takes over? (woman) what if all i do isn't enough? or what if i can do diabetes differently? (avo) now you can with once-weekly mounjaro. mounjaro helps your body regulate blood sugar, and mounjaro can help decrease how much food you eat. 3 out of 4 people reached an a1c of less than 7%. plus people taking mounjaro lost up to 25 pounds. mounjaro is not for people with type 1 diabetes or children. don't take mounjaro, if you're allergic to it, you or your family have medullary thyroid cancer, or multiple endocrine neoplasia syndrome type 2.

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it is time for today's three stock lunch. we have three analyst calls all resulting in downgrades today. first up, key bank well, it is time for today's free stock lunch first up, key bank down grazing disney saying it sees meaningful uncertainty. we have chief operations officer at e.r. shares eva, so, disney, since 2015 or so, disney under 100 bucks has been a buying opportunity. it's under 90 now. why do you say sell? >> i say sell for many reasons first of all we see the market c park attendance coming down. it's down for the first time in the last 50 years. the desantis/disney conflict is going on, and disney stocks have

stalled. i think overall in addition to that we have a big bar, the mauve "indiana jones" playing out. there are much better companies than disney right now. >> leaving it on the sidelines what about pfizer saying they're entering a period of uncertainty and a catalyst what would you do with the trade? >> i would say hold. on the one hand i'm concerned as we see the covid sales are back in the rearview mirror given that covid vaccines is one third of pfizer's revenues, we're going to see a significant decline. the stock is back where it was

in 2018. that's pre-covid levels, so the valuation based on expectations is fine. their margins have improved regardless of the fact that the revenues are significantly down. however, i think it ee just going to move with the market. that's why it's just a hold, not a buy, not a sell. finally, citizens financial also getting a downgrade on concerns about commercial real estate eva, what would you do with it >> it's a sell i think the feds put a target on their back they have the lowest capital ratio at 6.8%. and i think if we ever have another regional bank crisis, that's the first bank the investors are going to sell. by comparison, you have schwab with the highest cap ratio, 22.8%, and both of these banks are down year to date. i think it would be much better if the investor wants to have exposure in banks, they're much

better banks to be at right now. >> okay. still to come, turning the tables, china reportedly using our own technology to spy on us, and consumers are using ai to fight back against annoying tell marketers. those stories and more when "power lunch" returns:catch the market zone today and every day at "closing bell" sponsored by morgan stanley trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds,

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just 4:30 and a lot more stories to get to. let's begin with three key stories involving the ftc. first of all, they're saying generative ai raises concerns. second, it's the final day of the microsoft court hearing over their activision blizzard acquisition hopes. they want to do whatever they can to bring more customers to the platform through exclusives. and finally reports are emerging that the ftc might be targeting amazon with an antitrust suit over the marketplace. >> this xbox/sony thing is so interesting, especially after sony wanted to kill the activision blizzard merger regardless of the exclusives on the platform i don't know it looks like microsoft has done pretty well for themselves in the testimony here, but we'll see. >> i think they're good evening to prevail what happens in the uk which already blocked it, right?

>> i don't know. can the uk hold out? >> can they carve it out a lot of questions still remain. and china using our own technology to spy on us. the chinese spy balloon floating in our airspace earlier this year was equipped with american-made technology preliminary findings showed the balloon did help china collect photos and other information but apparently did not transmit it did they find an iphone on there. >> the most interesting thing is they asked us not to release the full report. th they don't want retaliation we're already getting leaks of what the report has to say i don't see how we can with hold we'll have to watch for the fallout. >> you can it's a battle over aspartame today. >> one of the most famous sugar sweeteners is one of the biggest

carcinogenics. it could be named as a potential cancer risk as soon as next month. aspartame is a sugar substitute found in soft drinks and chewing gum. do you remember one years ago? now we've got aspartame. >> pepsi developed it, but now it's most famous for being involved with zie yet coke i don't know if they would literally take it out because of this declaration, but it seems it would put pressure on it. >> do sugar and have less. >> i do monk sugar it's not bad it's okay. kind of expensive though. rite aid higher thanks to weight loss drugs. it cites ozempic and other popular weight loss injectables.

>> walgreens came out with disappointing results. i wonder why the difference. >> me too. >> there are now firms for hire to use ai bots to deflect and distract robocalls for you they can apparently call 100 numbers per second to get ahold of you but ai can delay and distract they'll answer sometimes and then pretend to be sort of an unwitting person they'll draw them into the person it's the aiand they feel this is wasting enough time that they flipped the tables. >> i send all calls to voice mail that are not in my address book already. >> i do the same but then all the health care calls, this tends to screen them out and then you have to go back i need ai for that. >> it's a dangerous game when you're a parent. so you've got to put everything important in your address book. >> i heard a voice maehl once that said, kelly, we want you to

know, your son is fine but he had a rock thrown ought him. >> we need ai to help us -- >> for that. happy fourth, by the way, everybody. i'll be back the week after. >> happy independence day. so important to recognize and celebrate. thank you for watching "power lunch." >> jon, thanks for being here. "closing bell" starts right now. kelly, thank you welcome to "closing bell." i'm scott wapner this hour begins with market moe money tell and why some people say it's just getting started as june comes to a close. bryn talkington sets us up with that dow and accept higher throughout it's the s&p's best month since january, dow since november. the nasdaq working on its best half of the year since