companies are going to deliver earnings >> quickly, final trade, give me a name, guys josh, you first. >> wnyye resorts >> all right, guys, good start "the exchange" is now. ♪ ♪ >> you know, we don't have the mountains, we don't have idaho we'll come up with something today. scott, thank you welcome to "the exchange." i'm kelly evans. here is what is ahead this hour. four day information a row for the major averages the dow almost at a 52-week high all of this thanks to cooling inflation. our strategist says we are in a goldilocks moment for stocks why she's sticking with big tech and where else she's putting money to work. and is bidenomics responsible

for keeping the economy hotter the federal reserve needs to call this out more we'll discuss. and disney's ceo bob iger hinting at major changes that would be coming to the company now that he'll be at the helm through 2026 the highlights of his interview through this morning, and experts weigh in but first, of course, today's market action with mr. chu >> peaks, greens, just like we saw out in lake tahoe. i fondly remember lake tahoe any way, kelly, to your point about the markets, we are green across the board just about near session highs right now. the s&p 500 now just sitting right below all that is on top of a 4500 mark so we have gained almost 100 points or so over the course of the last week here, by about 2/3 of 1%. to give you an idea where the s&p has been on an intraday

basis, up about 30 points, up at 1 at the lows. so very much a positive day so far. dow is up 51 points to the upside the composite index, the real outperformer, up north of 1%, almost 1.25% technology trade really standing out in today's session so far. interest rates a big part of that discussion. i want to say it's four days in a row that we have seen the ten-year benchmark yield fall in terms of value, but rise in terms of price for that overall government bond. we're falling again. 3.78% for the benchmark ten-year note veeld the two-year falls to 2.36%. you can see that difference there, narrows just a little bit more we were north of 100 basis points or 1% negative. now we're about 85 basis points. so watch that spread on the rate side of things and three stocks that have kicked off earnings season, so

to speak we often talk about the big banks as the ones that kick things off in earnest. we've got three s&p 500 companies that have been in the news today because of earnings generally, all three are up. delta, pepsico delta gets a check mark up here because it's a new 52-week high, better than expected results, boosted their full-year forecast pepsico, boost its forecast. and conagra brands, a slight miss, but a raising of the annual forecast. so three stocks, two consumer, one arable irline all focused h. >> dom, thank you very much. first, it was consumer prices, now another gauge shows inflation cooling. that's raising homes that the fed rate hikes might be over here's what the san francisco

fed chief said earlier >> it's too early to say we have victory over inflation this data is very positive i hope it's part of a downward trend. but i'm in a wait and see mode, because i'm resolute to bring inflation down to 2% >> my next guest says the fed hasn't finished raising rates. with me is robert kaplan, co-chair of the draper richards kaplan foundation. welcome. >> thank you, kelly. >> most significantly, let's tally up the impact. we have seen it driving down the highway, they're doing work, it says funded by the -- i forget which of the three bills how big an impact are we talking here >> so in a 500,000 foot level, you're seeing construction spending is dramatically higher as a percent of gdp. to understand this better, you have to go into each local market and i do a lot of traveling around the country

what you see is many, many states, and the announcements are continuing, are announcing the largest infrastructure project in the history of that state. the impact of these government enabled construction projects, when i say government enabled, because they tend to be public/private partnerships, is they not only affect construction spending but they have a multiprior effect so people are going to switch jobs to move into these new jobs and so at a high level it may look somewhat immaterial at a local level, it's having a very material effect on these local labor markets and service sector markets >> in the labor market in particular, you look at the claims number. things slowed last year, we saw the implosion of the high value tech stuff but the resilience of the rest of the economy is the most

notable thing about this year. you made an interesting point the other day, that some of these localities have to spend the money before the end of 2024 do we want all this to happen? if you looked at it glass half full, the fed is giving everything it wanted inflation is coming down and the economy is still strong. is bidenomics helping? >> in my opinion, it's blunting what the fed is trying to do it's not all bad, because without these projects, we might have otherwise been in a recession by now so the economy stayed resilient. many of these projects are good projects the battery manufacturing projects are necessary but many local officials are telling me, we've had this project we have been looking at for 30 years because of the government money, it was marginal until we got the government money so all i would recommend is, i think it needs -- if i were on the fomc, i would be leaning

towards one more rate increase and urging, if i were at the fomc, i would be urging the fed to do a lot more work in understanding not only what's been announced, but what's the forward pipeline, because if this money were to dry up in the outyears, i think you'll see these rate increases have a lot more teeth than it looks like they have right now. >> and chair powell was asked about this and down played the impact we know there's a reluctance to weigh in on what the administration is doing. >> and i think he said it was immaterial, although it's helping construction and they did a high level, it looks that way, but i think this feeds right into the wheel house of the fed you have 12 reserve banks in these local markets that i go to it's having an impact. anything other than immaterial >> look at the local papers. again, i grew up outside of syracuse

we talked about some of the midwest locations. look at what's happening in arizona. this is absolutely driving the narrative in a lot of these economies. >> it is and i don't think it's going to change the action for the fed in the next meeting but there will be a point at which they'll have to decide should we really pause for an indefinite period? and i think you've got to understand what the forward pipeline is. because i think there's a lot more coming. we're not done on the "inflation reduction act" projects, infrastructure ak act projects it would behoove us to get a better grip on this. >> let's bring in rick santelli. >> we've had a very large rally pushing yields down, and it's sort of like catching a knife.

there are many, including myself, who believe interest rates have peaked and recession or not, you can still stay long stock. but all of that seems to evaporate when you see this type of a market, where interest rates are falling. look at the 30-year bond yield today. they're now on four basis points, but hovering well below 4% 3.91% was the auction yield for 30-year bounds it was two basis points below that, so lower yields, higher price. and higher yield, lower price. 3.91 versus 3.80 it doesn't take a rocket scientist to see this. all the metrics are pretty good. one notable, if you look at the direct bidders, 20.1, that's the best of '23. dealers taking a little under 11%. that's good. but the tailing gives it a

d-plus, and i was being generous there. but there's something to learn from this auction, that no matter how much investors believe interest rates have peaked, they still don't seem quite daring enough to buy it on these levels back to you. >> rick, thanks. now back to robert kaplan. where do you think rates are going from here then at least another fed hike, maybe more >> i think you can see the fed from fed funds to the ten-year get even a little more inverted. in that many sectors that are economically sensitive are slowing. many of these enabled projects we just talked about aren't sensitive to economic conditions or to interest rates and so my guess is, you're going to continue to have an inverted curve. this is why i've been cautious answer many more rate increases, because i think they tend to

disproportionately hurt banks that are very sensitive to this. small businesses who tend to borrow at the fed funds rate they borrow along the curve. so i'm nervous about what this is doing with the balance of power between big and small businesses >> we are about to get some earnings in the next few weeks, but can i ask a bigger picture question to you? we're building chips and batteries here in the u.s. and while that's great for national security and for the labor market, is it all fundamentally kind of unproductive in the longer run you know, sort of like does the efficiency of the economy, because we're doing less globalization and all the rest of it, does it sufficienter in the long run >> we knew that the energy transition was going to be expensive. so this will speed it along. what woshys me more than anything is i think the number one determinenant of our future

is educational attainment of our young people, and all the reports show, if anything, it's been deteriorating >> right, post covid, the numbers are terrible >> even in the last year my only concern is with all this spending, i don't think education has been prioritized enough and so i think many of these projects will be good in the long run, but you need an educated workforce, and i would love to see us reprioritize or increase the priority of educational attainment, 0 to 5, the whole ecosystem, skills training, secondary education. i think we have let that lag a bit. >> just real quickly how do you fix it? >> well, teacher salaries is part of it, full-day versus half day, child care, that's affordable >> these are not the talking points i was expecting from the former head of the dallas fed. >> i spent a lot of time on this

in my career and the country the gdp growth is growth in the workforce and growth in productivity some of this infrastructure spend willing help, but you need an educated workforce and we are not prioritizing that enough >> amen. robert, thank you so much. former president of the dallas fed. speaking of those bank earnings, the whole season kicks off in earnest tomorrow morning. we'll hear from wells fargo and jpmorgan jpmorgan, usually the tone setter for everybody and next week, we get morgan stanley on tuesday, bank of america, as well a couple of the smaller players. we get the beleaguered regionals, as you can see there on tuesday, kicking it off let's welcome back my guests leslie, let's start with you and the expectations for some of the biggies. >> this is shaping up to be a

tough quarter. bank executives have been guiding the market lower and analysts have been slashing estimates left and right they have taken down the q2 estimates by 20% that's thanks to rising funding costs, banks needing to pay depositors more. and loan growth is slowing, so that's grcrunching margins. all of these head winds come at a time when bank regulations are quickly changing the direction of the economy is uncertain. much of this already priced into bank stocks with valuations well below historic averages.

conference calls may help generate renewed investor interest in the group, but we'll see tomorrow three of the big money center banks, jpmorgan, citi, and wells fargo report i'll be cities down with citi's cfo mark mason tomorrow on this very slhow. >> in terms of expectations, we know the trading environment has been more difficult. capital markets have been quieter. >> the trading environment has been very difficult. a lot of uncertainty in terms of the direction of the economy that plays a role overall. and the regulatory environment for deal making also has people sitting on ice the pipeline is a little thin, and you book revenue when deals close. so even though you have seen several announcements during a quarter that looked promising, they will be booked as revenue this quarter

a little bit of news from the ipo market it's all about when the revenue gets booked. and so most analysts in the market are expecting to see a huge dropoff in investment banking in the quarter >> leslie, thank you chris, we turn to you. you are expecting good things for the regional banks >> from the perspective of the banks making money and capital rising it will be a tough quarter on the margin there's a big reset going on for sure we think most banks will see misses because of those factors. but the market is looking way beyond the second quarter and looking into the third and fourth quarters, where costs continue to rise what's interesting is we have seen deposits very much stabilize, down about a half of a percent on the fed data from

the end of june through the end of march and so that is happening because banks are paying off the funds we are resetting the cost all around the street on funding that's going to come through on margins on the bad side. the flip side is the loan yields will continue to get better, particularly heading into year end. you'll see a lot more new loans done at 7.5%, 8% yields. so margins have an opportunity to stabilize, and we may see a few portfolios on security get restructured, and that will help, as well. >> i'm glad you mentioned the loan loss provision. even as all the markets are excited about how great everything looks, i asked if he agreed that the regional banks are a buy, and he said we haven't seen the credit cycle turn yet to him it was a matter of time it might not be now or the rest

of this year, but there is a sense that event is still kind of out there >> 100% accurate as we go into '24 and '25, you'll see defaults in the industry, which will be a lot worse for office real estate we all know that the time for banks to build reserves is now, to prepare for the losses to come i don't think the loss also be that bad, because we have a lot less leverage. the new ones today are done at 50% or less. so the credit is scarce, that means the price of credit should go up. and the credit quality, while it will have bumps and bruises, it will be a lot less than it was 15 years ago, thanks to less leverage and better terms from 2008, '9, and '10. >> do you agree in will be a lot of regional bank consolidation, and should we expect this earnings season to be a catalyst

for that >> i doubt it. it's hard for the fed examiners to approve deals it will be one-off transactions. you may see one or two deals done next year but most of the banking consolidation will be well below $100 billion, and a lot of it below $15 billion. so to me, that's where the money really is on the m&a side. what will happen is business will move out of large banks and pull back and move to the companies that can pick up market share and do new loans at better terms and better spreads. so that's the play at the moment a lot of the negativity has been overdone, and we'll look at better green chutes in the second half of the year with a stable banking system that is better funded and better priced and better reserved. your argument spins on the head that they are losing shares to

the big players here chris, thank you for your time appreciate it. >> absolutely. coming up, channel surfing bob iger saying that disney could sell off television assets and espn may need a partner. cleared for takeoff. delta airlines reporting a record second quarter thanks to strong international demand and cheaper fuel can united around american follow suit? and here is a quick look at the markets. dow up 50. s&p is up 28 points to 4500 on the nose right there the nasdaq up 178 or 1.3% right now. the ten-year note 3.76 back after this. what if buildings could tell you how they could be more efficient? i'm listening. well, with ibm, you can use software

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welcome back to "the exchange." bob iger will now have through 2026 to lead disney at a pivotal time nor the company he acknowledged the challenges and made some headlines on the future of linear tv. here's what iger had to say. >> they may not be core to disney there's clearly creativity and content that is core to disney but the distribution and business model that performs the

underpinnings of the business is definitely broken. and we have to call it like it is >> my next guest says the challenges he faces are monumental and he wrote the book "disney wars." so joining me is jim stewart, columnist at "the new york times," with our own media reporter alex, let me start with you. so much to say about this. what are the immediate implications of him putting these balls in the air >> i mean, bob iger has resisted this for years he put together -- this company came from abc, so the idea that he's saying, look, we may need to move off the abc group, the abc network, some of the linear cable channels, find a strategic partner potentially to take a stake in espn. these are big changes. they are in line with more recent comments bob iger made when he was not the ceo or

chairman he had spoken publicly a couple of times and alluded to the fact that the traditional linear tv model is dying he said the distribution model is broken. but analysts, investors and people at disney have pushed him to make bigger changes in this world for years, and he's resisted in part, because he has -- he was a part of the fabric that brought these assets together. so this is a big deal him say thing today. >> such a great point. jim, the idea that he spent his first tenure building the company, adding all these components, now he has to dismantle a lot of things. >> yeah. alex is right. people have been pushing for this for years when they could have gotten a lot more money for these assets but the idea that the abc network, the disney channel, and then espn is not core to disney is startling when you look back at the decades that linear tv

produced the lion's share of disney revenue and profits so this is a really big change and that model is broken he's absolutely right about that what they're going to do about it, i don't envy him he's to the a lot of charges on his plate. >> what do you think, jim? we could talk about disney, maybe some of it is self-inflicted, but this is a critical time for media to figure out, we knew the distribution or the model of the last 20 years. what does the next 20 years look like >> i don't fault iger personally all these companies are dealing with the same structural issues. but streaming was supposed to be moving in, and would gradually supplant the old models, and okay, you lose a little money in the beginning on streaming, then it would be profitable that's just not happening. investors have run out of patience with billions of dollars that are being lost on

streaming. now you have the cost pressures going up, the insane spending war with rivals like netflix, amazon, and apple. so you're not getting the profitability out of streaming, and the cable model is deteriorating faster than even iger ever dreamt was possible. so they're in a really hard situation. i assume they'll have to double down on streaming, but that's going to mean spending a lot, and investors are going to have to go through a long trek through the desert if, indeed, we get to the promised land where streaming makes money. >> you sound so bearish. he does have these monumental challenges so alex, does this imply more media consolidation within the industry does this imply big tech only has the pockets to fund the streaming investment and to continue to pay out? again, he alluded to this partner for espn

>> i mean, challenge number one is, you can say okay, we want to move off some of these legacy assets but what does that functionally mean because if you are going to sell them, you need a buyer there's no clear buyer here for a lot of dying, traditional cable networks i mean, it's possible that lion's gate and stars are moving off of each other. i know that the ceo of stars jeff hirsh is potentially interested in rolling up some of these legacy media cable networks private equity could be another outlet potentially but if there isn't a buyer, maybe a situation where disney has to spin some of these things out and simply wait and figure out if there is a strategy that comes along, you know, where they can at least move forward with a leaner company. of course, the big endgame is, are we entering some world here where disney becomes a leaner

company and theoretically could become an acquisition target for one of the big tech companies. everyone loves to speculate, apple will buy disney. apple has they have won any of these leg si cable networks. but maybe one day -- >> jim, quick last word? >> yeah, i don't think it's an accident hemade this announcement at sun valley where all the media brokers are out there. again, alex mentioned apple. that is the partner for disney, disney's partner apple has shown some interest in sports, they have the pockets to fund all this. and they have a long relationship with disney so there is a lot of talk, speculation, maybe dreaming about a disney/apple combination. >> although that's not tangible enough to help the stock trading at around $90.

thank you both today a quick programming note if you missed the interview with bob iger this morning, don't worry, we'll have an encore presentation of the interview at 8:00 p.m. eastern tonight. coming up, exxonmobil acquiring carbon capture, in a deal valued at $5 billion. look at denbury shares we'll dig into why shares are lower. and take a look at the dow map still a 52-week high, and chevron and walgreen's are your biggest laggards back after this.

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welcome back to "the exchange." here is your news update at this hour joe biden is on his way home after a one-day leader after the nato meeting he was in helsinki today to william finland to nato. finland, the newest nato member, shares a board we are russia and applied for membership after moscow invaded ukraine last year the mystery of who brought cocaine into the white house is unsolved the investigation determined there is not sufficient video evidence to identify the culprit. officials say they did not detect any dna on the bag of cocaine. the white house is reviewing the findings north korea state media released this footage, appearing to show the country's latest test launch of its intercontinental ballistic missile. it's designed to strike the mainland united states today in a show of strength, the

u.s. conducted military exercises over the korean peninsula. kelly, back to you still ahead, a goldilocks moment for stocks. signs of inflation cooling, a potential end to the fed hiking rates. we'll speak to a strategist who says this market is st rhtjuig for investors. "the exchange" will be right back rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. conventional thinking delivers conventional results. at allspring, we break away with purpose. harnessing data-driven insights and boundless curiosity.

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welcome back stocks are on pace for a fourth straight day of gains after the june ppi came in cooler than expected, and jobless claims were better last week. the next guest says the market can stay in this goldilocks moment anastasha ammarosa is a chief investment strategist. >> great to see you, kelly >> goldy locks moment, can it last >> yeah. >> how much longer can it last >> i think it can, and i know a lot of, you know, people who might be negative on the market side, the positioning, which is maybe a little extended or the sentiment, which is super bullish and buoyant. but you need a catalyst to

derail that. and unless and until we have the catalyst, i think the momentum is to the upside so i think the catalyst is a positive one the fact that we got the numbers on inflation, how great is that? there's so much to like in that report the fact that the fed is now going to hike another 25 basis points and likely to pause after that, you know, we can deal with that then we have the economy that is cooling, and another stat that flew a little bit under the cover yesterday was real wage growth for the consumer is up 1.2% so we went from negative real wage growth to positive growth so all of that supports the economy, and that supports the stocks >> one thing i wonder about, because last june was like the highest cpi print, 9.1%, this

has an easier comp in the next six months, we'll see the readings drift back up again. are they going to want to pause in an environment where we have gone -- i don't know what the expectations is, to maybe over 4% cpi again >> first of all, it's not a definite we will see those readings drift back up again it's contingent on what inflation does on a month over month basis. if it goes back to rising 0.5% or higher, you're right, we'll see the year over year numbers pop. but if it stays in the zero percent range, then if prices stay stable, we are on pace towards 2% inflation, at least on the headline, by the end of the year so it depends on the monthly pace of change here. you know, look, even if we rise a little bit in terms of inflation, the fact that they have these gaps that opened up, where the fed fund rate is 5.5%,

and if inflation is 3%, that's a lot of -- that means the real rates are positive, and they're going to get more positive, even if the fed just stays pat. >> which is interesting as well, because it would mean a tightening of conditions, even if they do nothing let's talk about valuation for a second one of the points michael made this morning at piper sandler is maybe we're in about a 19 forward pe right now, which is the upper end excluding bubble areas of what the market has ever been able to sustainably trade at so make the case for a 19 times multiple on a market where you go, obviously big tech is still overweighted and the nasdaq is rebalancing. at some point, are -- i don't know what the catalyst is, but can we stay up at 19 times >> look, 19 times, maybe historically this could have been extended, but you do have big tech, with really good margins that count for 27% of the s&p 500.

the answer is no so if you look at some of the big tech companies, again, software and semi conductors, the margin is double what it is for the s&p 500. and it's such an important weight i think that's partially what is propping up the valuation. if you exclude big tech, then the s&p multiple is right in line with the ten-year and 15-year average. so i don't have much problem with valuation, as long as the economy is not in a recession. you know, of course this is a very stretched multiple of 19 x if we are talking about a recession scenario but if we're not, it's fully justified. >> you also like the big banks to clarify some of the alternatives why? >> so i have come around to hiking banks again you know, after the regional banking crisis, the deal was, i don't want to touch the sector, because we needed to get some of the deposit outflows and the uncertainty. but i'm coming around to some of the larger banks of course, they report tomorrow. a lot of the head winds are now

well telegraphed and well known. we know that the funding costs are going to rise and that the net interest margins will shrink, lemnding will be slower but for the big banks, i like the potential for the pickup in capital markets activity if you look through m&a volumes they're up quarter over quarter. if you look at the ipo market, it's kind of up again, especially in the united states. so when you add that up, and i do think there's more to that activity in the second half, that bodes well for the biggest banks. it also bodes well for some of the alternative managers, because they have done the deal, they're waiting for the exit you know, the ipo window has been shut. but to extend that to open back

up again, that could be a nice upside >> if there is a note of caution, it is around consumer staple is that a valuation concern? look at pepsi this morning i think it was 13% >> consumer staples, as long as the overall market is going up, consumer staples will do fine. but first of all, there is no margin in consumer staples if i look at the s&p 500, consumer staples has the thinnest margins if anything goes wrong, that suffers. if we're not in a recession environment, i don't have to hide in staples. consumers are going to go out and spend on airline tickets you know, so i don't necessarily see a whole lot of defensive upside to that and then there is the valuation. because at some point, coming into early into the year, this was the crowded trade. people are hiding utilities, consumer staples, the valuations of these defenses are elevated

>> it all makes sense. for tech and maybe it can keep going. anastasha, thank you still ahead, exxonmobil seeking a deal, announcing they will acquire denbury for $5 billion. shares are down about 2%, not uncommon for an acquirer, but denbury is also falling. and before we go to break, check out the online etf, getting a boost from amazon. and off to offset the dip in carvana, with a 5% drop today. it's at 37 right now shares have once again disconnected from the fundamentals carvana, stillp 20fo u% r the week back after this. ♪

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welcome back let's get some show and tell where we show you a chart and tell you the story exxonmobil plans to buy denbury, valued at $4.9 billion, giving exxon access to the largest carbon pipeline network in the united states. this will may a big part in reducing emissions and get more electric vehicles on the road. >> what the three deals we have done already, we have effectively doubled the population of he can trick vehicles on the road day with the amount of co-2 we are sequestering so if your think about it, that's 20 times that if you think about it in different terms, that's a lot of emissions being sequestered. in fact, that would be the largest step reduction in co-2 emissions than anywhere in the world.

>> denbury investors don't seem as jazzed about the deal shares are lower by about 2% dan pickering tells us the deal is only asmall premium and below where denbury traded when this takeover was first rumored. that's why we're not seeing a bigger price action. still ahead, shares of delta are edging higher after posting record earnings and revenue. the ceo is staying positive on ke demand, but is it time to take profit that's next.

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welcome back to "the exchange." any indication travel boom is up and running take a look at delta air lines. up about 1.5% today beating street forecasts on innings and raising full year's earnings guidance telling cnbc this morning remaining bullish on consumer demand and points out corporate travel path is still in recovery due to office vacancies. here's what he had to say. >> it's not that people are afraid to fly or corporates aren't using virtual offices aren't open. as they continue to open we'll see steady improvement there. >> my next guest flagging delta's strength for some time what does that tell us and is it

sustainable? bring in managing director and senior research analyst. helene, welcome. >> hi, kelly. >> after delta rerated, how much is left, do you think? >> we think we're in early innings and think there's a lot of upside. historically the stock sold eight to ten times forward earnings guided today, for example, $6 to $7 our 2023 estimate is $6.70, but make the math easy seven times eight is 56. seven times 10 is 70 you can see where there's upside in the stock price >> sure. and a lot of people are arguing maybe it can go back to the strong trends we saw before the pandemic hit at least for delta maybe some others. how many other carriers would you put in the same stras fear

now? >> stratosphere >> kelly what we're seeing is the shift away from domestic to international. people tend to forget that a year ago we had to test to come back to the u.s. until mid-june, and by then summer vacation plans set. most people plan their summer vacation between mid-march and mid-may. they weren't going to change those plans. so we think of summer of '21 and '22 as domestic travel '23, '24's going to be international travel and you see it with significantly higher fares and as a result focused on international carriers. >> yes include united and american as exposure there voerz i imagine some of the more regionals here in the u.s. that don't have that feature? >> exactly some of the ultralow-cost airlines, we have market perform

rated on companies like jetblue and spirit but they do fly to some close in international markets, including mexico, the caribbean, northern and south america. i just think this year the shift is to europe europe seems to be very, very crowded. >> yes. >> and i'm hearing stories of lots of lines and so on, and we think, then, next summer will shift to asia pacific, and so i think that we're seeing this trend to more travel longer duration trips lasting further into the season. so instead of that cliff after labor day going into october especially when you can work from anywhere, and i think that that trend is going to continue for some time. for a company like delta, there's a really good

opportunity here, because they're 60/40 domestic international, and as they get bigger in international markets with their joint venturers and their boom you'll see that shift and international ticket prices generally higher than domestic the most obvious thing i could say. right? so you'll see that revenue start to move, continue to move up, and it should translate to higher earnings. >> where are you on jetblue? whatever happened with the spirit deal? >> yes so people forget we have a market perform on jetblue. they do have international they started paris recently and starting amsterdam and new london and then of course the caribbean, mexico, northern and south america. we have a market perform on the stock mostly because of the uncertainty surrounding spirit where we are is the justice department is suing to block the merger, and that trial gets

under way in mid-october so we should have some resolution before the beginning of second quarter 2024. >> do investors think there's any brighter hopes based on what happened with microsoft, that division or not applicable? >> yeah. no actually, kelly, a really good read-through to what could potentially happen with jetblue. i feel like this justice department doesn't like mergers in general. >> sure. >> even when they make a lot of sense, and they're probably a little bit emboldened by the fact they won the northeast alliance case, but then last week jetblue said they wouldn't appeal the decision instead focussing energy on the spirit merger. >> might say for better or worse. another discussion helaine, thank you for your time appreciate it. >> thanks, kelly. >> from cowen. that does it for "the exchange," everybody for more analysis on markets and the economy get my newsletter in one easy steb at

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memory is better. it's been about two years now and it's working for me. prevagen. at stores everywhere without a prescription. welcome to "power lunch. back with kelly evans i am jon fortt. coming up disney gives bob iger two more years extending his time on the job. we'll see what ends as being one of the moves taking espn droect con direct to consumers. much more about the stock and the company. two moss away from kickoff the football season. nfl commissioner roger goodell about to join us what does he think than potential major move by one of its big partners ask about that, streaming, gambling and kelly questions about aaron rodgers. >> a long-running joke here with jets fans in the