great to be with you. >> david, i'll send it back to you. >> leslie, great interview of course, seeing mr. gorman again, his view of the firm for the next 13 years. interesting to hear in terms of where he thinks it's been and where it will be going it will also be interesting to see it play out over the next ten months, that competition between the three top executives shares are up, despite what was a drop overall in securities trading revenue. again, mr. gorman did speak positively in terms of a bottom in advisory, for example, where he did say and kind of tell ceos, hey, be ready with a plan. you're going to need one in terms of sort of a re-emergence of more activity in an area i follow closely, of course, m&a that will do it for this hour of "squawk on the street. let's send it over to sara and carl on the floor. >> not going out like logan roy, that was a good line good tuesday morning, i'm sara eisen with carl quintanilla, live from the florida of the new york stock exchange. a c-suite tripper header

charles schwab ceo walt bettinger joins us the stock is soaring, on pace for it's best day since 2019 after beating estimates. ceo of novartis joins us. >> ceo of suntory joins us. topping the tape, b of a new fund survey. the bulls are back, they argue 68% surveyed predicting a soft landing, which they say has become the base case mike santoli on the floor with how that's getting reflected in equity prices, especially today. >> seemed like last week was the one where people stopped fighting the notion that we had, perhaps, a soft landing on our hands. we're running out of time for a recession to take hold this year it's also been following what the market's message implicitly has been with yields moderating.

what i find interesting is cash levels still above average they're down from the highs. there's still this sense -- it actually explains why the market acts the way it does all the selling seems to happen before the open and people hit the beach and it becomes this upward drift russell 2000, a broadening tape. almost an opening buying panic to get the stuff that lagged if you've been overweighted in cash and underweighted in stocks, you don't feel comfortable buying the absolute high in the trillion dollar club so you buy the banks and cyclicals and transports and small caps. >> wasn't the risk going into earnings, mike, that even if we got good news, stocks would sell off because the setup was so good so far are you encouraged that doesn't seem to be happening >> i would say yes i also would say it's early and the category stocks we've mostly heard from - >> financials -- >> financials and some of the older economy names were not the ones that seemed to come into

earnings season really stretched to the upside. >> they make note of the underweighted energy you could be in stocks and not believe commodities are going to leave you anywhere. >> this year is so much the inverse of last year if you just look at tech versus energy path, at july of 2022, it's the exact opposite of what it has been. absolutely there's whole parts of the market that either haven't participated or people feel as if they're kind of dead money and not interesting and just not worth the work. maybe that's the opportunity broadening, rotating rather than pulling back outright has been the mode so far. obviously seasonality gets weaker, sentiment is more frothy we'll have some turbulence here but it doesn't seem like it wants to take hold on time just because everybody, us included, like the market more. >> good setup, mike santoli. let's get to those financial results. that's the story of the day. one of the biggest movers of the

morning is charles schwab. the top gainer right now on the s&p 500. its best day since 2019. this follows a beat on the top and bottom lines with client assets now exceeding $8 trillion joining us in a cnbc exclusive is charles schwab ceo walt bettinger. welcome back good to see you. >> hi, sara. good to see you. thanks for inviting me today. >> huge move in the stock, up 12%. what are you hearing from investors in terms of what sort of signal of relief you gave them >> well, i don't know that there was a big signal of relief in more challenging times like last spring, it's important for people to focus on the trees, but at this point i think people are beginning to focus on the forest and the recognition that schwab's consistent long-term organic growth is still in play and our integration efforts with

ameritrade are also going very well. >> but you know going in there was all this consternation about the cash sorting, which basically, we talked about this before, walt, is the client money moving into lower margin business for you as clients want to chase higher rates. is that trailing off what's happening there >> well, it is i think it's important to put this in context. we encourage our clients to move money out of lower-yielding brokerage sweep accounts that are akin to checking accounts. they have bill pay services, fdic insurance when rates begin to move, we encourage our clients to take the part of those balances that are long term cash and put them in something that yields more interest for them. that's good for the client that's what a client-driven organization does. we know there's a financial impact to us in the short run of taking that action, but because we don't manage the company on a

quarterly basis, we're always going to do what's right by our clients. eventually when you do that, that trust is rewarded that loyalty is rewarded and those clients stay with us and grow their assets with us. i think you can see that in the results we presented today i'm pretty confident you'll see that as we go forward. >> what more can you tell us about the deceleration you've seen in that cash sorting in june and whether that's continuing into july >> well, it is when we look at the last couple of months, the client cash realigning is down from the first quarter of this year again, not surprising. because we were proactive going to clients, encouraging them to move their suite cash into higher yielding balances, they've largely done that. when i look at june, what's interesting about june is that even as this cash realigning fell to the lowest level it's

been in many, many months, part of that was because clients are moving back into the equity markets. that's a good thing. it's not simply clients moving money into something in cash that pays higher yields. they're back in the markets. and we saw in the aggregate for the second quarter, buys were about 20% higher than sell so, our clients are showing some optimism they've actually moved above the line in terms of their optimism about being a good time to invest and that's reflected in their actions. >> that's interesting color. just on the deceleration, so, is there a potential, walt, to restart buybacks here because you paused them last quarter because some of the impact and higher short-term borrowing that was coming as a result how are you thinking about that decision >> i still believe in an environment like this that we focus on continuing to build capital. we're aware there's possible changes coming from our regulators around capital requirements so, we're going to remain

conservative and continue to hoard capital at this point in time rather than going into a buyback period >> walt, it's carl sara mentioned the stock having it's best day since '19. i think on an earnings print it's the best day for the name since '09 as long as it can hang onto 5.5%, which looks doable. can you talk about how your stock is reflecting the fundamentals of the business right now? >> well, i use an example this morning in our analyst presentation that when my office used to be in san francisco, i would look out often early in the morning at treasure island and i couldn't see it because it was shrouded in fog. i knew eventually that fog would lift i knew eventually treasure island was still there i think that's a bit of what may be going on today with the stock prices is the fog has been there for the last few months, given the record rate of increases the

fed has undertaken in many cases people lost sight of the schwab franchises we're continuing to grow, doing the largest brokerage growth and it's going exceptionally well. and now people are recognizing, as many did, and held onto the stock or bought more, that fog will lift and the strength of the schwab franchise for the last 50 years is still there and will be there in the future. >> i remember back in march when things were dramatic across regional banks, you made a high-profile purchase. i assume you're above water on that one >> i might be. i don't pay that much attention to the stock price in the short run. but i certainly do believe in the company and the stock price over the long term >> yes, that was a good interview because it was in the depths of the worries about your stock and some of the other

regional banks so, do you think the crisis is over, walt >> well, i don't know that i'm qualified to talk about the broad picture from a crisis standpoint i do think when it comes to schwab that what we're seeing unfold is what we talked about would likely unfold. by that i don't want to give any impression that we're taking a victory lap, because we're not but we encourage clients to realign their cash to earn more interest they have done so. that process has largely played out. we expect to be net positive from a cash growth standpoint. at some point before the end of 2023 we'll pay down the short-term supplemental funding we utilized and the future looks very, very bright for the firm. >> but the thing is, walt, the fed is still raising rates we're expecting one next week, maybe another one, if you judge

their forecast how does that -- how does that trajectory fit in with your outlook on net interest margin and how do you have confidence that investors won't seek that same sort of yield-seeking behavior that could pressure results again? >> well, they've largely completed that process we're looking at record lows today for balance sheet cash it's possible that you could see a little bit more of that realigning going on. but that's largely played out and we actually will reach a tipping point where because cash will begin growing with our clients, these higher rates actually become a tailwind for the company from a financial standpoint and so another quarter point, another half point, i don't think has a big impact in client cash realigning, but it can begin to have an impact in our earnings longer term >> what about the td ameritrade customers and what you're

seeing i know you've been trying to do that over the last few hourters. how is it going and are you seeing any pitfalls or customer losses as a result of some of the changes? >> well, thanks to the extraordinary work by thousands of folks at schwab, that integration is going exceptionally well in may we converted about 5 million clients just in may. we have several more groups of clients to convert the may conversion would have been the largest brokerage consolidation in the history of our industry we have another one coming up in september and two smaller ones to go. the attrition levels are below those that we estimated at the time of the acquisition, so we're very pleased by that now, in fairness, we've spent a lot of money over the last few years leading up to this because we felt there was nothing more important that we could do than create a seamless transition for

these clients over to schwab the other thing we've done, we didn't take a traditional approach in integration, which is just to move everyone over to the awearing firm's platform and let it go at that. we went with the best of both. if you're a retail investor, you'll have access to sink or swim, which is recognized as the best trading platform for retail investors. if you are at uar, you'll have i-rebal and think pipe we've gone best of both. that's been more costly. again, a client-driven organization,ist the right thing to do. that's the approach we've taken and i think it's paying on of. >> so, no major attrition out of those conversions? >> no. in fact, again, we've seen attrition levels measurably lower than when we announced the acquisition. i think it's as a result of the approach we've taken we're going with the best of both platforms because each of these were very successful

independent companies on their own with great services for clients and great technology so, it only made sense to take the best of both and use that as what we'll have as our platforms going forward. costly but the right thing to do for clients. >> got it. walt, finally, as a technology leader we're all trying to figure out what the impact of a.i. is going to be. certainly on financials, on investing. how are you thinking about it when it comes to your business and also how people trade and what kind of advice they get is it going to be artificial intelligence-based or have you been dealing with some of these other problems and put that on the back burner? >> well, certainly ai has not been on the back burner. we have, almost, i think almost 40 use cases right now in various stage in the company we think that ai creates tremendous opportunity for our people to better serve clients, to provide them with incredibly accurate responses to questions with a lot of details.

whether it's going to get into the points of advising clients based on a.i., i think that remains to be seen again, a client experience, in our view, is only going to benefit from the work we're doing in a.i. today. it's a very significant part of our future. >> you said 40 use cases so far? >> we have almost 40 use cases right now. 38 specifically in process using a.i. in various places of the firm many of those will have a positive impact for client experience in time >> all right we look forward to hearing more about that when you're ready, walt thank you for the time today appreciate it. >> sara, again, thanks for the invitation always great to be with you. >> you, too. walt bettinger, the ceo of charles schwab. the ceo of suntory is coming up we'll talk japan. the bareron opportunity is

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goldman reiterating warner bros. as top media picture analyst saying the risk/reward is much better when compared to traditional media peers. the stock is up 3.3%, outperforming a bit. meantime, what do bars and restaurants have to do with the potential recession?

more than you might think, according to recent data from barclays spending on food and beverage away from home remains strong. bar spending up 14 year-on-year in july. our next guest is seeing the benefit of some of those trends. we're joined by the ceo of sun tori, takeshi niinami. what a pleasure to have you back welcome. >> thank you >> we were talking during the break how global investors have discovered japan as one of the key trades of the year so far. based on what's happening in your economy. >> that's right. because of the, first of all, rate increase in last 30 years, so which happened, high rate hike, we should be sustainable we are now facing a tipping point from deflation to inflation. that is a critical moment. we have to keep increasing wages, so that we never go back to deflation i think we are very much

confident that we'll be increasing wages and then, plus shortage of labor, which is helping us to increase wages so wages, wages, wages. >> how is that change in the consumer mindset affecting sales for your business? >> i think they are now confident because they started to accept price increases, but always there's a concern of the inertia to get back to deflation. we have to get rid of it by increasing prices and innovation is always key. >> do you think that the central bank is going to make a move here i had governor wada on the panel in central portugal. he said by his measure, we're not at target yet. he didn't seem like he was ready to adjust the policy any time soon but the market thinks he's going to do so. >> probably from the current level to 1% because we are under

inflation. above 2% i think except the subsidies from the government to gas, energy, cost, i think could be 5% now so, i think it should be momentarily, bank of japan should change the policy to widen ycc to 1%. >> what are you seeing as far as summer sales in the u.s., in the retail sales number today, the restaurant figure was up a little bit, but moderating growth for sure. is that what you're seeing >> i see -- in a space like restaurant, drinking, it's above the flat, maybe 2%, 3% above, depends on categories. for example, tequila is still hot. american whisky, so-so tequila is still an important category for us. >> do you see consumer tastes changing at all? any migration away from tequila

to something else? >> from cognac to whisky, from american whisky to tequila >> are you going to be adding to your tequila portfolio >> i guess so. >> m&a >> well, i guess so. >> there are probably more celebrities with tequila brands. >> it depends on the quality our policy is not because of celebrities but quality. if we can improve quality, we are -- go ahead to acquire distilleries in tequila, but it depends on how we produce -- how we can improve >> one of the big stories of the year has been the ability to ship for less, right i mean, it's such a reversion from the last couple of years. do you see any danger that that will get more expensive from here freight, shipping containers >> i think supply chain issue is alleviating. and it's less stressed i think because of chinese

economy, which is not that good, and asean countries not doing well, so we don't see huge problems with the supply chain >> what about inflation overall in the portfolio you had pricing power -- >> i think it will be under control by fed and other central bankers. so, it should not be too big issue. probably under control six, seven months. so, we are not extra concerned about inflation, just like the last year, two years ago. >> are you concerned about demand >> yes i mean, still wage hike is still going on, especially service sector it's a mixed message so, the inflation, but wage increase, so -- but supply chain is okay at this moment. >> one last question on china. the recovery has disappointed to some degree this year. do you think they can catch up >> no. >> does it depend on stimulus?

>> i think they need to stimulate, driven by the private sector instead of the state-owned enterprises. but they have huge number of people and they're still lots the people china is still a potential. >> a lot of the targets are still 5% growth for the year it's been a pleasure to have you. thank you for coming in. >> thank you so much. >> congratulations on 100 years. >> that's right. another 100 years, more bright future. >> thank you >> thank you so much later this hour, novartis getting a nice bump after raising guidance and plan to spin off generic medicine business the ceo joins us in a bit. evercore goes to outperform. sees digital ads stabilizing was ov30orabe f the first time not too long ago erc tax refund. you should get a second opinion from innovation refunds at no upfront cost.

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got a couple movements on

cruise lines truist cuts norwegian. they say surge in prices probably hit a peak. not too worried about the runup in carnival, go to buy saying increase in market spend should boost revenue spend. >> i guess it's a tough call when the stock is up 70% to 100% this year. time for a news update with contessa brewer. good morning. >> hi there. russia hit ukrainian forces with missiles and drones after it pulled out of the black sea grain deal yesterday russian officials say the attack was retaliation for a drone strike on a key bridge linking the crimeaen peninsula the united nations is warning the end of wartime deal that allows the safe passage of grain from ukrainian ports actually threatens global food security. a federal prosecutor in new york says his office is seeking control of new york city's troubled rikers island jail.

he says his office will move forward about contempt proceedings against the city after a court-appointed federal monitor said the city failed to curb mismanagement and violence inside the jail. troubled. in and out employees will not be allowed to wear a face mask at work unless they have a doctor's note. it's a new policy that came out in a leaked company memo it effects those in texas, nevada, colorado, arizona and utah and the new rule goes into effect in mid-august we'll w5atch for that. >> thanks. coming up next, mike lippert of the baron opportunity fund on the one thing investors get wrong when it comes to investing in tech. his fund has been crushing the market this year, up 40%

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check out the dow going strong today your session high, up 343 points, a full percent what's driving it higher health care up 3.8%. goldman sachs ahead of its own results tomorrow imgen, caterpillar, american express. you have a mix, cyclical stocks, materials doing well honeywell and apple are lagging. the nasdaq is negative, down 0.25% even with a big jump in the dow. the s&p 500 up 3%. kind of reflecting a mix of the

sectors. >> s&p as well fresh intraday highs for the year on that note let's get post to post with bob pisani. >> it's goldilocks the tech stocks are holding but not pushing the market up. the market is broadening out other sectors are doing well we're at new highs earnings are coming in strong, too. you saw walt bettinger from schwab, a leader on the s&p right now. bank stocks, morgan stanley doing well we're starting to see the financials push forward, which is really nice to see, particularly after earnings season starts. some regional banks, there's comerca, almost $50. since the start of the financial crisis the banking sector, kbe at the highest level since march. you have to have broad regional banks move up on the earnings report and that's what happened. earnings don't necessarily translate into higher stock prices we had big beat from prologis.

it's a reit warehouse. they do funds from operation this is a reit company opened at $130 that was an historic high. they sold right into it. it was a great report overall, but stocks moved up a lot recently there are some limits to how much people are willing to endlessly buy stocks here. transports are doing great fedex here, look at some of these numbers. we have a new cfo, john deet rick that just started with the company from atlas air worldwide. that's maybe moving it up. u.p.s., united parcel's in a big labor dispute. they may have a labor strike going on within a few weeks. that's probably also helping fed he can has had an enormous move to the big side you get that dow effect overall, new highs and that tells people an additional buy signal

dow theorists are going to go o the crazy side if we keep pushing things up a little more. guys, back to you. >> thanks, bob. let's dive into the market with our next guest whose fund is up 40%. top holdings including microsoft, nvidia, tesla joining us, baron opportunity fund manager mike lippert. congrats on the year so far. i wonder how you're feeling with the tone and positioning do you feel like the market is coming to you or are you beginning to worry about things like valuation >> no, we don't worry about things like valuation in the short term you said early on, what do people miss? what they miss and the market is they underestimate the long-term earnings growth, revenue growth of these key new trends. so, if you look historically, no one thought that apple would be where they are today or tesla selling this many cars or google search is as large as it is today. i think that's what people miss. we're focusing on long-term

trends we are in the earliest of innings. the first thing we've heard in the early inning on a.i. is nvidia telling us they would do $11 billion in revenue and the market was expecting 7. >> yep, that's going to be the guidance that lives forever. historic you know, we've talked last few days about the ndx rebalance, where those names became such a large part i wonder, to the degree are they becoming too large for your room size in that case, what do you graduate -- what do you migrate to >> we don't play those games we're thinking of where these companies can be again in multiple years short-term movements around reconstitution of an index doesn't impact us at all we're trying to figure out how big the opportunity can be and which companies have the competitive advantages to realize the opportunities and take market share. you know, all the ones that are listed here are the ones that we're very confident in. >> you still think, mike, nvidia

is being underestimated after its 215% run up this year? >> yeah, could it tread water for a little bit sure when you look five, ten years out, what's the biggest change in the computing world today it's the advent explosion of a.i. you know, jensen called it an iphone moment. you know when the iphone first came out 15 years ago and look where we are today and i think this is a platform change in the way we compute and the way people deal with corporate data, information, software will really change and it will be led by a.i. >> i'm wondering if there are any other winners you can spot beyond the big four that everybody knows are the big winners from a.i isn't it about finding where that next -- where that next leg of growth is going to come from and where the next 200% move

goes >> you're exactly right. we have a whole portfolio, we own 40-something names it's not only nvidia, microsoft. we own software companies like service now, workday, several others we only semiconductor companies like amd, marvel and others. so, you know, everyone wants to talk about the big names but we play this in a portfolio way. >> talk about being positioned exactly for the chapter at hand, mike we'll keep in touch with you i hope appreciate it. good to see you. >> thank you very much. meantime, novartis moving higher after raising guidance, outlining its planned spinoff of its generic medicine business as well the ceo will join us after the break. don't go anywhere. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror.

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are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. staying on the earnings theme, look at novartis moving higher best day since march for that stock. reporting beats on the top and bottom line for the second quarter in a row the stock rising on the company's rising its full-year guidance and announcing its spinoff of generic division, sandoz, which is set to take place in early q4. joining us at post 9, ceo vasant narasimhan >> great to be here. >> what is driving the beats if you look across the portfolio, most of the blockbusters drugs came in

better than expected >> it's focusing the portfolio, becoming a pure play medicine company. we're seeing that in the performance of all of our key brands, all six of our key medicines are growing ahead of analyst expectations we expect that to continue, particularly kbreast cancer mens plu pluvicto u.s., china, europe, japan, all ahead of expectations. >> does it reflect the markets to which you're selling into, the fact that, you know, some of these diseases -- breast cancer, obviously huge potential there. >> one is they're really good medicines. the data is supporting kis kisqali, and great data and we had new data in the early breast cancer setting i think that's one two, there's been the normalization of health care systems like we've seen in china which is allowing china to grow at a really great pace i think it's the operational performance at novartis.

we did operational restructuring, transformed the business to be much more lean and focused and that's coming out in the operational performance, top and bottom line. >> $15 billion buyback how should investors read that does that mean less m & a? you've been doing some acquisitions. >> really this is about confidence in the stock and confidence in our outlook. when you look at the company, we are unstretched from a balance sheet standpoint our net debt is only at about one turn of our ebitda, which allows us to have a lot of financial flexibility. we recently announced a acquisition of chinook for $3 billion, a number of bdl activities we've had so, we're able to do the $15 billion share buyback with the cash we have on hand as well as a strong free cash flow, but maintain the power to do m&a as well we really think we have the opportunity to do both that's what we plan to do. >> we talked the last couple of days about the remarkable age we're in regarding research.

is there a war for research talent going on? >> i think there's this explosion of new technologies. in very specific areas you need to find the right talent three areas we prioritize is cell therapy and gene therapies where you need very specific ex expertise. one in cancer expertise and r&a interference and we acquired dtx that brings in-house new technology, new capabilities i think the war for talent is going to be really focused in the next generation technologies and you see companies across our sector now moving, i think, strategically, in each of these areas. >> you said you chalked it up to some of the strategic changes you made inside the company. investors are paying attention to beats in a row, two raises in a row. what specifically have you done and how does it change the long-term financial projections? >> i think the biggest thing is

we've really now focused novartis as a pure play innovative medicines company what we've been best over 25 years is finding novel medicines and launching them effectively we spun out alcon. we're able to focus all of our capital energy resources on medicines that really matter that's one second, we streamlined the organization we removed 10,000 people across the organization, both from the generic side and also in our pure play medicine side of things that really stream lined decision-making sped things up the last is we focused on five key therapeutic areas which means all the resources of the company are focused on a handful of drugs, a handful of r&d areas. that's a shift we used to be quite broad-based. i think that diluted effort and energy in the markets. that's leading to strong operational beats you're seeing. i hope we'll continue over the course of the year. >> it does imply that you have confidence in regulation, both

in the u.s. and around the world, do you not? >> i mean, we do believe that the future remains in being innovative medicines you have regulators that despite the challenges, fda and europe are still supportive of novel drugs and novel medicines. the reimbursement environments are ones we have to continue to shape. clearly in europe that's challenging right now. there's been some retrenchment in investment in health. we have to make that case. in the u.s., the i.r.a. has been problematic, specifically on some of its provisions on when prices are set we think we can shape all of that in the medium to long term. right now in washington there's promising legislation on pharmacy benefit manager reform, which we think will also provide tailwinds to patients affording their medicines and our sector we have to keep shaping that policy in the environment to be successful. >> that's interesting. i don't think you've come out as strongly as others against the inflation reduction act drug pricing provisions. >> oh, we're quite strongly against it, absolutely.

>> do you think your industry can delay the implementation >> i think we can shape the implementation over time i mean, clearly you've seen a number of lawsuits those will aim to hopefully slow down things so we can get legislative fixes. when you look at obama -- the aca, affordable care act there were 40 revisions over time we need to aspire to do something differently with the i.r.a., shape legislation, get more reasonable things in place. there are good parts, the part d cap, which means seniors can afford their medicines and limit their out-of-pocket. but there is this price-setting provision at nine years for small molecules, which is hugely damaging to the innovation ecosystem. we have to get shifted over time. >> do you think it's as disruptive as the aca was for its time >> i think in our sector, which medicines we develop, it will be as disruptive if not -- if you think about it, what the act does is creates a disincentive to create a pill or sample to take medicine for the elderly.

so, in trying to help the elderly afford their medicines, we've created an incentive for our industry not to create the next wave of medicines to help people who are aging live longer, healthier lives. i think it's a distortion which policymakers didn't think through. we can get fixed, but we just have to take the right actions now legislatively. >> why are you not in obesity? did you drop the obesity program? >> we did not see great data with our obesity drug i think, sara, there's a lot of activity right now with obesity and it's terrific but there's also huge needs in other areas cardiovascular disease, our activities in renal disease, great work in breast cancer and prostate cancer. we're trying to be disciplined and not chasing the next big thing and saying, look, these are areas we'll good at. we'll stay disciplined over time, find great medicines and it will pay off. that's why you're seeing the earnings beat you're seeing. >> you're not looking to license a drug there or acquire something in that space? >> no.

i think we're focused in our key areas and stay there. >> when i talk to folks in your industry about a.i., they think the potential in health care is one of the most exciting and most promising where are you in using that to develop new medicines? >> i'm excited as well for a.i. to support r&d in particular it is going to revolutionize the basics of how we operate as a company but i think it will spur drug discovery five years ago we invested heavily and created an integrated data, data 42 with our partners at palantir we're leveraging that to move it quickly forward in the company i think this will give us an advantage because our data is organized, it has a clear ontology and i hope that leads to new discoveries faster over time. >> that's another discussion for another day. i did not realize the palantir link there thank you, vas, for being here after the break, that a.i.

startup slowdown, can anyone compete with big tech? that story is coming up. speaking of a.i., take a look at shares of microsoft spiking after announcing on details on its a.i. products including a $30 user price tag on its a.i. chatbot for some office apps. stock is up almost 4%. stay with us.apps. the stock is up almost 4%.

that ai goldrush that is

seeing billions of dollars poured into startups might already be slowing down as some of the businesses begin to cut workers. that is the focus of today's "tech check" with deirdre bosa >> generative ai has been this untouchable space in tech and markets this year. seven mega caps leading the broader market higher. i know we'll get to microsoft in a moment, but ai startups attracting billions of dollars in private funding there are some signs that some of the air could be coming out over the last week or so to chatbot startups laying off employees. one was jasper that helped users create content with generative ai software, blogs and social media posts and such it raised $125 million series a round at a $1.5 billion valuation. on linkedin the ceo writing the layoffs are part of efforts to, quote, sharpen our focus and align resources to become the best possible ai co-pilot for marketing teams. maybe we should say best

possible in a crowded field. now jasper is one of a handful of startups that essentially uses ai to write content for marketing teams, copy.ai, typeface, simplified there's also mutiny, another chatbot startup that has reportedly cut 30% of its workers amid this rivalry. each one of these companies say there is something unique that sets it apart from the competition. they don't all stay alive at standalone products. they are starting to get impatient. ai hype in the form of earnings season last quarter an ai rap he ever, all you needed was to mention it on your earnings call. this time around investors will be looking for actual impact on revenue and earnings which brings us to microsoft, seeing that 3% pop. it's going to be charging for its chatbot, its openai and that

will trickle through to the bottom and top lines >> the market is excited about that, the monetization maybe that's the next level here, deirdre. >> key word. >> announcing ai to charging for ai, $30 a month is what they're putting out there. >> that's what nvidia told us last quarter they were one of the last of the big tech to report, but everyone thought ai was a secular shift, some time in the future and nvidia told investors, it's right here we'll book revenue and a lot of it this year on this shift is what microsoft investors are hoping it's telling us now, charging a pretty steep price for these products what is it i think $30, right >> $30 >> it's not cheap, but investors believe that companies, users, people want this and are willing to pay for it. that will trickle down >> i feel like for companies that is pretty cheap to get access there interesting to see that lift, the stock and the whole market

deirdre, thank you deirdre bosa with the session highs for the dow and the s&p 500 with microsoft leading the way. wells fargo says buy on weakness and netflix ahead of slanings tea d goldman sachs on the other side of this break stay with us i'm still tasting what's next. even with higher stroke risk due to afib not caused by a heart valve problem. so if there's a better treatment than warfarin... i'm hungry for that. eliquis. eliquis reduces stroke risk better than warfarin. and has less major bleeding than warfarin. eliquis has both. don't stop taking eliquis without talking to your doctor as this may increase your risk of stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking, you may bruise more easily... or take longer for bleeding to stop. get help right away for unexpected bleeding, or unusual bruising. it may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures.

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earnings is the buzz these days, some of the biggest names gear up to report today. goldman sachs first up ahead of the bell as it has warned results could be a little rough. ceo david solomon last month telling me goldman could take impairments on cre loans, commercial real estate, and some of the issues. the question is how much is in the stock. the other big name is netflix up more than 50% this year after introducing an ad tier and cracking down on passwords, a lot of optimism about results there. and then we'll get tesla after the bell, even better performance this year, up 130% expectations are certainly high, carl, after tesla beat those delivery expectations. so the bar is high >> the tesla story will be about deliveries but also gross margins, ai, cyber truck, a

bunch of different buckets bofa has a fascinating note today looking at the price cuts on the lightning arguing maybe we're in a period where the consumer is saying we don't want an ev right now, period. >> which makes you wonder about some of the tesla price cuts before in the meantime, the market is growing very strong. yields are helping they're lower. >> fresh highs on the year let's get to the judge guys, thanks so much welcome to "the halftime report." i'm scott wapner front and center the bull run in stocks, the dow streaking, the rally showing no signs of peaking. now the investment committee debates where your money is likely to go from here joining me josh brown, stephanie link, jason snipe. the dow is good for 380 right now. the nasdaq pulling up the rear it rarely does that but is still up a quarter of a percent. we'll get to all of that we have so much to get to today. we're going to