trading at just under 20 times next year's earnings, that historically has been a very good valuation to buy the stock. that's it for us "the exchange" is next thanks for watching. welcome to "the exchange." i'm kelly evans. both the s&p and the nasdaq touching 52-week highs after that cooler than expected cpi print. but don't be fooled, the biggest risk to stocks is still the fact that there are reasonable alternatives we give you the names in the hunt for yields. and will investors -- ♪ ♪ [ inaudible

what could ai regulation look like? ♪ ♪ we begin with today's market rally and first dom chu has the numbers. >> kelly, it's been a generally positive day so far. maybe more tepid because of the debate about the hawks at the fed right now. if you look at the overall picture, it is green across the screen, roughly half to 1% gains for all the major indexes out there. the dow up about 138 points, 34,399 4473 for the s&p 500, solidly above the 4400 level, up about three quarters of 1% 33 points to up theside. at the highs, up roughly 49 points and 24 at the lows of the session so far so again, very positive so far today. the nasdaq composite up 1%, 139 points up, 13,900 for the

composite. kelly did mention what we saw with that cooler than expected inflation print on cpi that did show some market gain in terms of bond prices overall. the two-year note specifically dropped by 16 basis points, currently to about 4.74% on the two-year the ten-year note yield down about 5.4% the spread between the two-year and ten h of year, widening out just a little bit to 88 basis points watch the interest rates on that softer than expected inflation read and a couple of stocks to keep an eye on today. entering tomorrow, we're talking pepsico and delta airlines delta airlines gets a gold check, because it's, again, right near the highs for the year so far. so a new 52-week high. pepsico, not so much there but a couple of stocks focused because they kind of kick off earnings season. we talk about the big banks on

friday but dealta and pepsico reportin earnings before the opening bell tomorrow keep an eye on them. >> delta, up 46% this year, one to have best performers. dom, thanks. inflation cooling substantially in june. up 3% from the previous year, the smallest gains since march of 2021. but it may not be enough to stop the fed rate hikes but this is still risks in the market but there are alternatives to stock. joining me now are my guests welcome to both of you peter, what should the fed be thinking about this inflation report and about those who say, well, is 3% going to be the low print of the next six months >> to your point, it will be just from a comparison base effect standpoint. and i don't think the fed is going to be totally surprised by

this inflation print so it was only modestly below expectations prior to that, they seem to be committed to raising interest rates again. the point that the fed is trying to tell the market here is if we back off, and this is what tom barken said today, if we back off, inflation comes back strong, then we will be required to do even more. i think that's their sort of foot on the neck of inflation, that's going to remain there, even though they're not necessarily going to be pressing down much further after just one rate hike. the fed funds futures did not blink abeye after the cpi print. >> it was sort of in line with what we knew was going to happen i want to focus on the idea that if they take their foot off of these hikes, inflation will come back why? does anyone expect it to reaccelerate >> not necessarily, but they're afraid there is that possibility. the 1970s playbook they don't want to revisit.

and that if they do back off, if they do start to cut interest rates, for example, in response to a rise in the unemployment rate, well, what happen it is that does flare up inflation again? just eaven now, you have oil prices at the highest level since april coinciding with the weakness in the dollar so the fed needs to be stubborn with their persistence on keeping higher rates for longer. i don't agree with the initial hike again, but keeping rate higher for longer will be its own form of tightening >> sandy >> yeah, i agree the fed is -- i think they have to ultimately, you know, they're going to raise one more time in july, and then i think that's the 11th and final so you look back to 2022, with the fed raising so aggressively and stocks got beaten up in 2023, they have discounted that rates are probably going to stay, you know, rollover a

little bit we see the ten-year today, and growth is up 35% on the year with value up, too so we want to fish in that value pond opposed to growth, as we think rates probably aren't going any higher from here >> isn't that the case for growth this has been the pause rally since march, but we have seen this levitation on the idea that the fed is going to slow down and that supports growth stocks. >> i feel like it pulled it forward with a 35% return for growth stocks already. you look at the tech heavy s&p 500. trading a multiple over 19 times earnings and small caps, 13.4 times per earnings so when we look at new ideas, we are not looking in the larger cap tech space, we're trying to find things on the value side of the equation, where there's value to be found. >> you like palomar, first hawaiian are you worried about the results as we move through

earnings season? >> i think they're not priced for perfection these are names that have been overlooked, undervalued. so i think they could all do well ceasar's in particular you know, it got beaten up a little bit this year, because they have exposure to the consumer and exposure to, you know, higher interest rates. i think it's not going to be that bad fore ceasar's at all now we're 6% off the all-time high for it. so we like ceasar's a lot. >> we have the ten-year option note we bring in rick santelli. >> it had a long tail, and that isn't a good thing yes, it tailed one basis points. the yield at the auction, 3.857% the problem is, that one basis point tail takes a lot of the

grade off, even though some of the metrics are quite good it's on a day where yields drop precipitously, so we can understand pricing was lagging with regard to how the aggressiveness of the traders truly could be measured. to find a higher one,ky find a couple that are equal, but to find a higher one, you have to go back to february of '22 if you look at indirect, 67.7, that's a very important one with foreign interests. that's the best since february oh of this year, along with dealers taking 12.4% that was the lowest level since february oh of this year so all things considered, it was a decent auction, other than the final pricing. as you look at that chart, you can see that the ten-year has dropped precipitously since the failure of two-year notes to close above 5.057% and the bank of canada raised a quarter point to 5%, right

around, what, 11:00 eastern. what did that do that helped to move some of the percentages. i know you guys were talking about them, and i know peter watches them closely even though july hardly had a tremor, the september was quite volatile it's been hovering just below 30% most of the last several days since the non-farm jobs report last week it got down to about 12% it's hovering around 17% and the reason i find that so interesting is because so many of theable abnalysts jumped to conclusion that canada is pretty much done, the u.s. is pretty much done. the uk has the most aggressive problem at this time back to you. >> what would the shortest tail be, like a pug >> yeah, probably like a pug we'll use the pug in the next comp for a good auction. >> thank you, rick peter, put rates and the market

in context for us as we look to kind of close out the session after the biggest print of the month arguably after the jobs report >> i think we have to now keep our eye on the bank of japan we talk about the fed, we talk about other central banks. to me, the bank of japan is the next in focus. what they do could have a direct impact on where longer term u.s. rates go it's very possible the boj widens yield control so while the fed may be close to being done rea raising interest rates, i still think we have higher >> we'll leave it there. some of the big travel names hitting 52-week highs as vacation season heats up, and as hotel and rental prices have been coming down seema has more >> we are seeing some relief for travelers.

the cpi report showing lodging rates fell 2%. high income travelers who visited domestic resorts over the past two years are now going back to europe and canada, and that inadvertently is putting u.s. rates lower and a stronger u.s. dollar is incentivizing outbound international travel with. that said, domestic airfare is down but look at estimates for a round trip ticket overseas that's still 16% more expensive than a year ago. and also some important context. go-to markets like maui, florida keys have yes, seen their hotel rates come down, but prices are much higher than prepandemic levels vacation rentals, that's where the research firm expects rates to full further, due to an oversupply issue, and consumers becoming more cost conscious, and that's a point the airbnb ceo has made in the past

in fact, last time he came on with us on cnbc. >> right where do they think prices are going from here? is there talk about a supply glut, something that could push us lower, or is it just regional and anecdotal? >> i think it will really depend on what part of the travel story we are discussing. if it pertains to the cruise lines, because they are the last sector to rebound from the pandemic, analysts have been saying this sector still has pricing power over the next few months hotels will be a big question. yes, there is a supply issue here, which is the higher cost of capital that is restraining developers to add new properties so does that give hotels pricing power? >> delta tomorrow will be a really good barometer. seema, thank you coming up, ai is one of the

hottest topics on wall street, but not all ai etfs are a good bet. bank of america warning they're not as intelligent as you might expect plus, a new fda? lawmakers are considering proposals how to regulate a artificial intelligence. and here is a look at the markets. s&p up 33 points nasdaq still up a percent. the ten-year, 3.85, down from 4% "the exchange" is back after this

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welcome back to "the exchange." ai, the hottest trend on the street lately. less than an hour ago, elon musk announced his new endeavor, saying the intent is to "understand reality. and artificial intelligence has given names like nvidia and microsoft a huge boost this year but they are not the only way to get exposure to this hot new trend. the average ai etf has gained 27%. my next guest initiated coverage on eight of these funds, but he's not necessarily a buyer of

all of them. joining me is jared woodard. welcome. you have done the hard work for a lot of people here how do we separate, is it the what from the chaff? the wheat from the chaff >> that's right. i'm glad to be with you. the differences among these funds can be dramatic. you have everything from pure play concentrated funds, botzs, a fund we like in that category, versus other funds that include, you know, companies that you might think have nothing to do with artificial intelligence or new technology doing that work under the hood, it's especially good advice with a theme that is vaguely defined in some ways as artificial intelligence >> yeah. so vaguely defined, can we -- look, i feel bad sometimes asking you to call out people who might be, you know, maybe we'll just call out the best how do you want to do this >> i think there are some really attractive funds that have defined the universe well, and have strong risk adjustment

returns with good fundamentals looking at the coverage across, we have an analyst, we incorporate the stock news, and three funds that we do like include aiq, another fund is tecb two of those are from global x, these are all etfs focused on artificial intelligence but defined their universe in a way that has a plausible set of stocks we think that will be important, because as this develops, as the hardware and software becomes more advanced, you want to be focused in companies that are participating in this market and aren't just shouting it out on earnings calls or making some nominal investment just to say they're participating in artificial intelligence. >> so the ones you want to avoid then include a whole bunch of names that aren't ai it reminds me of the softbank story, a whole bunch of ai names or companies that mentioned ai but aren't truly leaders in this space. do we want to give any examples of that?

what would you tell people to be on the lookout for >> i think the greatest thing to be on the lookout for, the risks are substantial. this is a very attractive long-term investment them, but we expect a lot of volatility. we have a neutral view on the category as a whole. one thing investors might not know is that the average stock in these ai etfs, 1/3 of the stocks are unprofitable today. that's double the rate of the unprofitable stocks in the nasdaq nas100. the overall average for these etfs is trading at 31 times earnings, double many of the familiar stock indexes people are watching so you are paying a high price for firms that many of yet have to show profits on the hopes this long-term theme will play out. we expect a lot more volatility as market leaders emerge and investors should be prepared to dollar cost average in over time >> so aiq, there's a 63% overlap, so you like that.

further down the list, xt, and others these start to have less and less overlap with what you temperatureified as the real ai winners, is that right >> that's right. either they have less exposure to the names that are equity analysts, less exposure to the ai theme overall, and some of those have, you know, greater expenses, have had lagging returns. looking at all these measures in a positive way gives us a total output score and more time to invest in the funds. >> so which one would be the best short would it be the one that has the most pure play, or the one that has, you know, the least to do and maybe some of the lower quality ones need to overlap more with the hype than the reality? >> if you are skeptical about artificial intelligence, and there's some interesting

arguments to that view if you think those are going to be a marginal contributor to productivity, our advice is to invest in the firms across the whole economy that will be able to take advantage of ai and their own business, to become more profit an on their own. not necessarily the hardware and software firms so ai becomes almost a binary bet. if you think there will be as transformational as electricity or the steam engine, get involved if you are a bit more cautious, you can invest today but be prepared to buy the winners and the industry leaders if those risks emerge that i mentioned around valuation and profits, i think that the pure play etfs and the stocks and those funds will be the funs that are most at risk. >> the binary nature reminds me of crypto. jerry, thank you for your time appreciate it. >> thank you lawmakers are considering proposals on how to regulate ai,

including forming a central agency like the fbi or the fda to oversee it. emily is live in washington with the latest for us. emily? >> reporter: kelly, senators are discussing regulations on companies developing using ai as a part of larger bipartisan legislation. lawmakers told us that they are considering several options for overseeing ai, including the independent agency that would function similar to how the fda regulates food and drugs other senators told us there's been discussions about requiring companies doing ai work to be licensed by the government to ensure that they are following safety protocols while congressional leaders are pushing for ai legislation, lawmakers are aware of some of the shortcomings here. any bill they pass, they noted other countries like china or qatar won't be beholden to u.s. laws >> think they there's a strategic advantage to the

country to lead on this technology at the next level, they don't care what the u.s. law is on that this is not something that we have a monopoly on >> reporter: senators held their first briefing on national security and ai yesterday. chuck schumer rolled out a framework for a bipartisan ai bill earlier this summer, and said he hopes to finalize that legislation in the coming months kelly? >> and that bipartisan legislation would it create or decide how to create this agency or would they start in a more piecemeal fashion? >> reporter: there's just a lot of discussion going on at this point, lots of ideas the government licensing is one idea all the senators said it's way to soon to say what exactly could be in this bill, but there is really a strong bipartisan urgency to get this done, and not just in the senate but the house, as well in a way that we don't see for a lot of issues up here on capitol hill it will take a while to hash out

the details, but the work is being done, the discussions are being had, and there is a focus on trying to get something and the timeline is months >> emily wilkins reporting in washington don't miss a special cnbc pro talk we have a roundtable of experts on all things ai related, happening at 2:00 p.m. eastern coming up, trouble brewing at the magic kingdom we'll speak to the analyst behind that call and take a look at the dow heat map today we hang on to a 144 point game unh and cisco lagging. we're back aft ts.erhi

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welcome book "the exchange." we are well off the hikes. dow up about 325 points earlier, but now 200 points below that level. nasdaq up 1.1% and we're keeping an eye on domino's, the top performer in the s&p today. after years of avoiding third party delivery, they're partnering with uber to jolt online ordering. they say uber eat as will be thi third party platform going forward. and home depot up about 2% after unveiling no, its line of halloween decor? this year, it's going big. offerings include skeletons and ghouls that are 7 to 13 feet

tall i'm just not ready and lucid group is the worst performer. they did about 1400 vehicles, 400 short of what wall street was expecting. lucid will report second quarter results next month shares are down 12%. and now here is a cnbc news update >> joe biden delivered a speech moments ago in lithuania, touting the strength of the nato alliance and commitment to ukraine. >> each member of nato knows that the strength of our people and the power of our unity cannot be denied >> he heads now to finland, the newest nato member, for a show of support where he will meet with leaders of sweden, norway, iceland and denmark. the aclu filed a legal challenge to block an hours old

abortion ban in iowa the bill passed making abortions after a fetal heart beat is detected illegal that's usually around six weeks before many women know they're pregnant the republican governor says she will sign the bill into law friday and it would take immediate effect nasa shared an image to mark the anniversary of the webb telescope, showing stars at the moment of earth. it shows what our universe would have looked like billions of years ago when it formed >> it looks like a big cat to me what is do you see in the clouds or the stars >> thank you, court. stocks are rallying after that cooler than expected inflation data it's the signal the fed was looking for to stop hiking but morgan stanley says a july hike is still on the table we'll ask her why on the other side of the break.

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welcome back the rise in consumer prices, smaller than expected last month. each that number is being propped up by housing and insurance costs. combine it with the broader cooling in the labor market, week manufacturing and

tightening lending standards, and one could make the argument that the fed's tightening is doing it job but my next guest says rate hikes will continue. joining me more is morgan stanley's chief u.s. economist ellen, welcome >> hi, kelly i miss you >> it's great to see you, and not just hear your voice this is all a sign of normalization, but i guess we're a long way for that from the fed. what was your reaction from the report this morning? >> relief. we thought on friday, we got the jobs report lower than expected. services is what we were focus on today and you nailed it on the head. hit the nail on the head the services excluding housing, flat and that's great news. but look, it doesn't change the

trajectory for the fed, who is dead set on a july rate hike, and this is just one round of data, and they're going to need more >> it's interesting you say that, because the reason to focus on this, they're supposed to be leading indicators of where inflation is going so we're told that those don't have a lot of price pressures, isn't that basically job done? >> so the fed definitely, after our bout was transitory, remember that word i think that the fed doesn't mind being on the wrong side of the coin on inflation this time. and i don't know if you recall, but janet yellen when she was care, was keen on reminding us that one data point does not a trend make so these data can get revised, you can easily have distortions in the data that are then corrected for later on

i think everything is moving in the right direction, but you look at the absolute level of prices, and they're still too high in the u.s. the rate of inflation is still too high, so these are very encouraging signs. i think it suggests inflation will be coming down faster than the fed expects. >> right >> but that's not something that will affect how they feel about the near term here in terms of what they still need to do >> i'm going okay, shelter, we know the deal with that. rents are much softer. home prices are not rising like they were. car insurance, that's going to come out once the premium hikes go through other than energy, i'm not sure where we get reacceleration. the labor market is cooling. so there's going to be a lot of things pushing against this. so i don't know where the need to further hike when we still aren't sure what the cumulative effects of these will be >> your arguments are what the

more dovish folk on the fed have been pushing i know there's a big, strong consenc consensus on the fed to deliver two more hikes, but there are those that believe we have not seen anywhere near all of the impacts of the policy tightening and credit impacts coming through yet. i'm with you, i think there's a little too much complacency out there that we have not seen the full effects, or that we're not going to see further effects from credit tightening in the third quarter is when you would see those impacts come through. so even though we have the soft landing call on the economy since february of last year, and we have been one of the more optimistic on the economy all this time, we still don't think that we're out of the woods. and so what i want to focus on now, and what i think people should be focused on, it's not about the direction of travel on inflation. it's clear that the economy is

slowing and inflation is coming down i think it's the speed at which it comes down. when will powell be satisfied that it's coming down quickly enough and he's talked about staying on that tightening bias until they see a clear and convincing drop in inflation, and we're just not there yet. we're still sort of at the beginning of that. by the september fomc meeting, when they revise their projections, i think that's when they come off the tightening bias i think it will take until then for them to come out that tightening bias. so i think this july hike will be the last one. >> where are you on the recession at this point? >> i think the back half of this year will be slower than the

first half the story is not getting consumption wrong or jobs wrong or inflation wrong we have had incredible strength in the industrial complex. it's a lot of the infrastructure spending that was authorized in late 2021 that's coming through. we're seeing on shoring and near shoring impacts on the industrial sector. that's something 245 our economist covering mexico have been pounding their fists on the table about. that is going to be fading over time, though and so, you know, i think it will be a list of productivity that can extend the cycle, as well so we don't see a recession this year i think let's have a dose of humility here. any economist that tells you they're accurate more than two quarters out is just lying there's so much that can go wrong with the keconomy the further you go out if there is a recession, i think it will be a mild one. we have a lot of cushion to

withstand a downturn and to push against it >> some of these metrics, you look at it and go okay, the recession isn't this year. 2024 is a re-election year for a president who has pushed fiscal stimulus through the pipeline that seems to be contributing tremendously from a harder landing right now. maybe that can continue through 2024 maybe this is a silly observation, but i think it's politically unlikely we'll have a recession next year. >> typically, the government has automatic stabilizers that are set to kick in when the unemployment rate deteriorates enough on a state by state basis. the presidential elections have little to do with the business cycle. if we do get a downturn in 2024 for the incumbent party, it's just an unfortunate outcome, but

it's not something that presidents control at all. >> all right we'll see. for now, as you guys said, it's softer than we expected, that's for sure ellen, thank you for your time great to see you today >> thanks, kelly still ahead, let's call it chips helping chips. nvidia forced to ditch its plans to acquire softbank's arm last year but as that chip designer readies for an ipo, nvidia could play a pivotal role. details next on "the exchange. . you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. take the first step to see if your small business qualifies. (swords clashing) take the first step to see -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

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wouldn't qualify for an erc tax refund. you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. take the first step to see if your small business qualifies. welcome back shares of nvidia up 3% there's a report in talks to anchor the ipo of chip designer arm, a public listing that would be this year's biggest here is more in today's tech check. christina? >> less than two years ago, nvidia tried to buy arm for $40 billion but failed to do so due

to anti-trust issues today, nvidia could play a major role in the ipo. arm makes the blueprint designs for chips and smartphones all around the world probably in the smartphone in your hand right now, and has expanded into auto design as well as servers. it will be listed in new york by this fall by softbank. so nvidia was approached to be an anchor investor, so that means taking a lead role in buying shares and building confidence among other investors. but nvidia's preferred valuation of about $40 billion, which is way less than softbank's $80 billion goal so nvidia can't go it along. so qualcomm and intel have all shown previous interest in investing in arm in some shape or form. so a consortium of arm investors will increase the value of their relationships with arm, but also reduce risks for softbank's stake post ipo, and help drive

this stock higher. why is this? softbank has a 75% stake in arm. a lot is on this ipo, given softbank's previous, let's say investment missteps. but in softbank's listing of arm last may, it said arm could continue to be a subsidiary post ipo likely that means keeping control or even with these big anchor investors. so there is a reason to secure nvidia you guessed it, ai nvidia drums up confidence, but makes it clear that ai is how arm may plan to seek out growth. >> trickier to figure out is why nvidia is investing in this -- is it a biotech company? >> so it's a biotech rekucursio.

so they're using ai to sift through and find new uses for old drugs, or any type of potential drug candidates. these databases are massive. so nvidia just announced they are spending $50 million, which isn't that substantial, $50 million to gapein access to thoe data sets. nvidia also has a new cloud service that they plan to license to their own customers that would get -- that means nvidia would get access to all of that data from recursion. that's why nvidia is doing it. we'll have way more details. i'm sure we'll get more details. it's interesting, i guess push forward for nvidia into the biotech world. obviously beneficial for recursion because the stock is up 70%

still to come, the titans of the media are back in sun valley but there are storm clouds overhead we'll go there for the latest. and one top analyst warning on disney why he thinks the magic kingdom is headefoa ffuld r diict period, coming up next (bobby) my store and my design business? we're exploding. but my old internet, was not letting me run the show. so, we switched to verizon business internet. they have business grade internet, nationwide. (vo) make the switch. it's your business. it's your verizon.

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welcome back media heavyweights are meeting at the so-called summer camp at the so-called summer camp for billionaires in sun valley, idaho, talking a.i. to economic headwinds. sometimes there's fuel talk, too. julia boorstin has been at the conference hi, julia. >> reporter: the conference kicked off with a panel on the economy, with treasury secretary larry summers and right now, investors dreesen and peter teal are on-stage and talking about a.i. in fact, a half-dozen ceos have told me that a.i. is top of mind with open a.i. sam altman set to speak on friday. he told me the next it ration of

chatgpt will be better, smarter and faster with new capabilities when it comes to the economy, ceos tell me they are seeing a robust consumer, though the advertising market is lagging. take a listen. >> the market is still weak. weak, relative to recent history. but stable doesn't seem to be getting worse. the change in the economy, a stable weakness and seems to be the tuned. >> reporter: for the ceos here, there is also concern about a potential actors' strike that could be called as soon as tonight. bob iger is here looking to sell disney's hot-start india business

of course, there is speculation about whether iger will name one or both about his executives as his eventual successor >> big interview with him tomorrow morning, as well. we'll get a decent amount of time julia, thanks very much. my next guest has concerns of his own about disney. he lowered his q3 earnings by 10%. he writes that disney is in a difficult time with park attendance slowing welcome. >> thank you >> wish there were better news we can talk about the coverage later. on the disney case in particular, do you think the park traffic slowdown is significant? and what is causing it >> the point i was making in my note is i'm not concerned about the orlando parks. they had a difficult compare to a year ago when they had a 50th anniversary promotion. they've been managing for less attendance and more revenue per

attendee that's a better experience when there's fewer people in the parks. and internationally, their parks are in a big growth cycle because of the pandemic recovery in asia, particularly in china >> when i was looking at stats of parks traffic, but relative to 2019 and some of the earlier years we were still down you think that's part of a specific plan? >> sure. it's part of a plan. i'm not sure that those numbers have been reported by the company. there's a lot of chatter out there. we'll see what we get in terms of numbers i believe that the international growth is meaningful i think that the per cap growth is meaningful. and the crowds have been managed with the spatial system that is better experience and better for the brand. >> if international is so important, what is the news of the india devestigedevestige.

>> we've only seen the press reports that you've seen their india presence is through the fox acquisition that's star television, hot star, the streaming service. that was a business that was a shining light of fox a growth opportunity, something that was supposed to be generating a billion dollars of cash flow for fox. it appears from this general report they're expecting way less than that, trying to down 50%. to 100 million and maybe a loss next year. that really speaks to the difficulties at large in television cricket wrirights, sports right were more expensive. they have part of television and paying more for that and the pressures that are endemic in india and globally with people doing more things online and part of that is reflected there. >> that's fascinating. i remember when that happened and the india piece when this

was talked about and i wasn't sure if they were spinning it out of strength or weakness this answers that. how about the more strategic questions about hulu and the others bob iger has big decisions to make >> we have a buy rating on disney we think that have tremendous nonparallel assets their theme park is iconic the earnings right now is not great. it needs to improve. the stock works one or two ways. the regime figures it out or there's pressure to break up disney the base case is that it's not broken up. and if it were, it reflects the value of the content and the value of the theme parks and the rest of it, you're not pay pa paying more for. >> that would be shocking if they went in that direction. the fact you would consider the

possibility tells you how far we've come >> the world is changing it's not clear that the structure, having the busineses under disney is the best structure. sports rights will go towards the scale players in tech. apple, google, amazon. >> it makes you wonder about all of media what you're saying has huge implications >> it might be that content fits better in a tech platform. theme parks fit better independently. this team's challenge is to prove that's not the case. i don't know that's what they want to do if they don't have success, it will be. >> fascinating have you tried threads yourself? >> i have tried threads. >> what do you think >> it's fine it's fine. >> what do you think the use case is? who does it appeal to? >> it appeals to people who were frustrated with twitter. people who are wanting to have a light in front of the conversation around fashion and

around celebrity >> i don't think this is the barton cry >> yeah. >> i've tried it out i don't get it i don't need it at all it takes my instagram audience i follow and gives it to me in a text version and doesn't give me news or fin twit i don't know if i'm the weird one or if threads is looking for a long lasting niche >> the opportunity they have is to change, right they're starting -- they've done tremendously well. they've skewed interest in politics and news. but they need politics and news to be a twitter replacement. and i think that can develop organically. and the opposition to it can evolve if it does, i think it could be incredible >> remember me your price target on meta. >> i have a price target up about 10% from here. so, $333 >> upside, if they figure this out. barton, thank you for your time.

barton crockett with rosenblat bob iger will sit down for an exclusive interview at 8:00 a.m. eastern time i won't miss it. i don't think you should, either that does it for "the exchange." for more analysis you can get my newsletter in one easy step. the q.r. code on your stream on "power lunch," marcus samu samuelsson, he will be here. he should have been here for lunch to talk all things food inflation. john ford is getting ready i'll join him on theth se ts eak. oerid s on a t m an investor in d 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.

welcome to "power lunch. stocks rallying today after the cpi report backs up the hope that the fed won't have to hike much more. we're about to get the latest beige book on the fed. will i