>> jefferies financial group $1.5 trillion industry new asset class on wall street >> so we're trying to hang on to gains here the dow going for its 10th straight day, still in the green. the s&p 500 is, as well. the nasdaq, as you see, though, has dipped negative, hugging the flat line. "the exchange" is right now. >> thank you very much, scott. i'm dominic chu. here is what is ahead on the show as the market broadens out just beyond technology, there is one sector our guest calls too compelling to ignore he tells us the names he's buying plus, as the payment stocks start to report, there are two of them with an unusually attractive entry point the analyst behind that statement is here to make her case, and with how much upside she sees ahead for that stock. and the fifa's world cup

underway the u.s. team playing their first game tonight we have a special world cup sponsor edition. three stocks you can score with and one to put on the bench. we begin with the markets right now. they are generally in the green, and for the dow industrials, that's the highlight these days, because i'm going to show you a green 48-point gain for the dow, which sits at 35,273 the reason why it's important is because if it's green again today, positive, it would be ten straight days in a row to the upside that would be the longest winning streak for the dow since august of 2017 that's how long it's been since a ten-day winning streak has been in place. the s&p, 4543, up about eight points at the highs of the session. we were up 20 points, up two at the low. so tilting a little more towards the lower end of that range, up one quarter of 1%. the nasdaq about unchanged, 14,064 the last trade there. the sector that's been an

immense focus this week, maybe no surprise, it's been the banks. financials overall, bank earnings last week into the beginning of this week has powered many of those names, big banks and regional banks towards some of the best levels in a long time. the s&p bank etf itself up about 7%, and the financial sectors, up 3% overall, encompassing not just them but insurance names, as well. so keep an eye on the financial sector and then the stock that's caused a good amount of spectacle and confusion we'll call it. serius xm radio, down big. some are calling it a short squeeze or liquidity driven run. much of this has to do with some of the moves that we have seen in serius from a fundamental

value standpoint against one of the companies that owns the majority of shares, which is liberty media. there's been a relative value arbitrage trade that's played out, alongside the rebalance that might have added some more there. but watch serius xm. around 34% of the total flow in terms of shares is held short. again, watch that volatility trade. down big today, up big over the last two, three weeks now at this stage we'll watch that let's begin on the other side of things in washington, d.c., with joe biden meeting tech executives at the white house. he's expected to speak within the hour amon is in washington with what is on the agenda steve is tracking the companies involved and steve liesman has new data about what this country's comfort level is with artificial

intelligence so amon, we'll start with you. >> executives are at the white house today, as joe biden announces voluntary commitments from them to move forward to what the white house is calling a safe, secure, and transparent development of ai technology these new commitments include one that people will notice broadly, which is a push to push an additional water mark on ai audio and video. the commitment that may have the biggest impact here is an effort to allow internal and external security testing of ai systems before they are released in an attempt to spot any harmful programs to make sure ai doesn't spiral out of control terminator style. the white house is walking a delicate line, because they want to assure the safety of ai technology, but they have to make sure that these innovations are down here inside the united states as a result, these new commitments are voluntary only, and will not carry the force of

law. but as commerce secretary said on cnbc this morning, this is just the first step in a longer process. >> ultimately, congress will pass a law which will have teeth, penalties and enforcement. and that will take some time that's why we are saying let's do this as a first step. >> she said this is a bridge to regulation here. we expect to see the president making those remarks on ai coming up soon in the roosevelt room, dom. >> so this is a big deal, because right now, it's in essence the walkup, if you want to call it that, to this idea that there could be more broad ranging, wide sweeping type regulations around what's been a very early stage development for artificial intelligence what exactly is the hope for what the conversation involves today with these big tech

executives is there anything that is ground breaking expected in these conversations? >> well, look, i think the hope ultimately is that there is a legal regime that comes out of congress on all of this. i think as you look at it right now, what we have is a hand shake deal between these tech companies and the white house. there's no force of law behind it at all. this is a very tentative and voluntary regulatory regime that's being built around ai we'll see if it works. what was said earlier today is that the administration is working with allies around the world. she mentioned the japanese for example, as one alhi the united states is reaching out to here this is going to be a global phenomenon so regulation doesn't work if it's only domestic so what they are trying to do is start the process in the united states and reach out globally and see what they can do to bring at least the sort of democratic world, for lack of a better expression, into an ai

regulating regime overall. >> one more quick point before we move this conversation forward a little bit china is always a big part of the discussion when it comes to artificial intelligence. how much will that factor into perhaps some of the administration's concerns about where the u.s. sits from a competitive standpoint against the world's second biggest economy, and one that by the way, we go back and forth against about who is the biggest super commuting power in the world. >> it's huge china obviously not a signatory to this. this is not taking place in beijing but in washington, d.c so that has implications what the administration is trying to do is have this regulatory regime start to come into place, but not so intensely that it drives innovation out of the united states. they are very wary about china taking the lead in ai. that's something they do not want the intelligence community doesn't want it, the white house

doesn't want it for political and economic reasons so you can see them struggling with that. but that's just the reality of the world that we live in, dom >> all right let's bring into the conversation now steve covak and steve steve liesman. there are a lot of companies here, but it doesn't sound like legislation is going to be very close in the offing. so when we talk about names like nvidia, which has been at the forefront of this, and microsoft open ai, how exactly are these companies factoring in their future financial health, given this conversation happening right now? >> exactly look, to be fair, these companies have been calling for regulation since the beginning of the year when we started talking about ai and the buzz ramped up. so they're getting some of that here they're going to have this agreement with the white house, not enforceable, of course but how does that figure in financially? take a look at what some of

these individual companies are trying to do a lot of the regulatory ideas are saying let's look at your data sets, what data are you using to train your ai google, microsoft, open ai, they don't want to show that. so when it comes to some of these common ideas of what these ais are being trained on and some of the deeper regulations being sought after, they are against it in a lot of ways. look, i'll quote senator warner, who came out with an interesting statement right after this happened i'll read part of it he said, while we often hear ai vendors talk about their commitment to security and safety, we have repeatedly seen the expedited release of products that have unreliable outputs and susceptible to misuse basically saying we need to get some legislation out the door. if you want to be cynical and you would be justified if you were, they might not be able to do it. they can't even get child safety passed, let alone something like this

>> these are all concerns, but in your mind, what is the bigger risk right now, the idea that we could have generative ai creating things like deep fakes, you know, false, fake narratives, fake news, fake images, or is it this idea that these so-called large language models that have to "scrape" all of this data off the internet, whether it's personal data or consumption patterns, that sort of thing, is it the data privacy side of things or the idea that it could be used >> i think it's both the white house is concerned about the deep fake issue, especially as we have seen some examples of it remember that fake picture of the pentagon on fire imagine that as we get into the heat of the election season on social media it's clear that social media

companies are not prepared for it when it comes to the privacy and safety part of it, we have been talking about these issues for years and years. the better part of a decade, zero pieces of legislation have been passed to rein that in. if you want to be cynical, you would be justified >> this is the perfect way to bring steve liesman into the conversation, because we now have an idea, steve, of just how fearful or aware the public is about artificial intelligence. >> yeah. listening to steve, i think the public might be right about this while the tech industry and the stock market, they're like ai, let's do it. a survey says the public has deep concerns over what we're calling ai anxiety 2016, 2016, 36% were comfortable with ai now it's 27% uncomfortable so the net negative rating is around 42%

so people have gotten more uncomfortable with it the more they have learned about it unusually for almost every question we ask, every single demographic has a large percentage uncomfortable with it each the young, 42%, as you go down the age spectrum, more and more uncomfortable with it, getting up to 65 and older, 78% uncomfortable. when we ask about the public facing side of ai, little acceptance they really don't like it when it comes to driving vehicles what do you think will happen? 21% say make their job more easier 18% say it will replace them 49% may not be paying attention. i just want to ask steve a question i asked ai how to make americans more comfortable with it

>> that's very meta of you >> what it did is said you can have an ethics board, but be very careful about using the data for predetermined outcomes. one of the things ai brought up was this very nefarious example. if you have ai programmed to make lending decisions, what stops you from putting racial data into that and they don't want to disclose this >> exactly >> would the government do anything about that? >> i think the government eventually would want to do something about that i think banking and financial regulators might have a view into that. but i don't think there's anything on the books right now that would affect that, other than sort of general, non-discrimination statutes relating to banking. there's nothing in this agreement that's binding legally. this is just the tech companies coming to the white house saying we're going to agree to all these things

they're all aware of all of the business and social implications of this. the question is when the rubber meets the road, will the government have the right to force these details out of these xaens companies. >> they should have to if you are creating -- artificial intelligence is, in essence, a very, very sophisticated set of algorithms, instructions if you make it artificial intelligence why can't you just say, this is the constitution of the united states, and here are the rules, follow it. for all the "star trek" fans out there, this is the prime directive. the prime directive is you do not violate the constitution of the united states. >> what if the prime directive is to make money

>> that's different, though. then you have to regulate it, right? >> that's the way you have to program your algorithm saying go out and make as much money as you can. and i want to emphasize, the example that ai itself brought up, not my example, which may be the red lining, but maybe the idea is that if you regulate it, you get out in terms of the competition, right if i let you see my algorithm, i've got nothing >> that's right. that's the intelligence value. and i just remind you, dom, that in "star trek" they did not have money. >> that's true >> i don't want to go full nerd on you >> they were just plain colonialists >> one important piece here is the current regulators the ftc is saying we're going to look at ai and apply the current

laws so when it comes to child privacy, we have already seen actions like that. so they are taking a look at this, at least on the regulatory front, and the law enforcement front. they feel like they have the authority to at least push the laws as they exist today, but it's clear we need more. >> i'll end on this, gentlemen i just had my car insurance repriced i was pitched the idea of letting them track me to put one of those devices in there, and it would save me x dollars i decided it was not worth the x dollars saved to have somebody tracking me. >> in a couple of years, you'll have to pay extra to not be tracked. >> there's the paradigm. all right. fascinating conversation >> have to end the conversation with, i'm sorry, dave. >> live long and prosper

all right. nick clegg is sitting in on that meeting in the white house he'll be joining "closing bell" in a first on cnbc interview at 4:00 p.m. eastern time today so, again, meta obviously one of the big names associated with the metaverse, artificial intelligence and everything else the dow is trying for a tenth straight day of gains, something that hasn't happened since 2017 for the year, the s&p 500 has climbed 18%, while the tech heavier nasdaq is up around 35%. so is it too late to get into that tech trade now? our next guest says no, and he's turning to one tech adjacent sector that he calls too compelling to ignore joining me now is the managing partner at harris financial group. jamie, great to have your thoughts here. this is interesting, because for everybody who has been watching

the markets and watching cnbc, they're well aware of how much the run has been related to tech and tech related stocks. where is there still value >> it's all about health care. tech and health care, the intersection of those two cannot be ignored there was so much innovation that happened during the pandemic, and we're just starting to see some of the pieces of it come to the marketplace. but one particular area, medical devices. you have people voluntarily wearing continuous glucose monitors so companies are absolutely knocking it out of the park. people are paying close attention to their health care brought about by technology. >> just stick with us for a second here. i want to turn our attention now to joe biden, who is now speaking and making remarks with regard to what's going on. we'll take you there right now

>> -- to underscore the responsibility of making sure that products that they are producing are safe and making them public, what they are and what they aren't i met with some of the top minds to hear the possibilities and risks of ai. kamala can't be here, because she's traveling to florida over the past year, my administration has taken action. last october, we introduced the first of its kind ai bill of rights in february, i signed an executive order to direct agencies to protect the public from algorithms that discriminate in may, we unveiled a new strategy to establish -- responsible ai intervention. today, i'm pleased to announce

these seven companies agreed to commitments for responsible innovation these commitments underscore three fundamental principles safety, security, and trust. first, companies have an obligation to make sure their technology is safe before releasing it to the public that means testing the capabilities of the systems, assessing the potential risk, and making the results of these assessments public second, companies must prioritize the security by safeguarding models against threats and manage a risk to our national security and sharing the best practices and industry standards that are necessary third, companies have a duty to earn the people's trust to make informed decisions labeling content that has been altered or ai generated rooting out bias and

discrimination, strengthening privacy protections and finally, companies have defined ways for ai to meet society's greatest challenges, from cancer to climate change you, and investing in education and new jobs to help students and workers prosper from the students, and there are enormous tumts here -- students here these commitments are real and will help the industry fulfill its obligation to americans to develop safe, secure, and trustworthy technologies that benefit society and uphold our values and our shared values let me close with this we'll see more technology change in the next ten years, or even in the next few years than we have seen in the last 50 years that's been an astounding revelation to me ai is going to transform the lives of people around the world. the group here will be critical in shepherding that innovation with responsibility and safety

designed to earn the trust of americans, and as i met with world leaders, all of the g7 folks are saying the same thing. social media has shown us the harm that powerful technology can do without the right safeguards in place. i said at the state of the union, congress needs to pass bipartisan legislation, ban pa targeted advertisements to kids. but we must be clear eyed and vigilant about the threats emerging that can pose to our democracy and our values americans are seeing you advanced ai and the pace of innovation and the power to disrupt jobs and institutions. these commitments are a promising step, but we have a lot more work to do together realizing the promise of ai,

without managing the risk, is going to require some new laws, regulations and oversight. in the weeks ahead, i will continue to take exec save action and help americans leave the way towards responsible innovation, around we will work with both parties. i'm pleased that leader schumer and others in the congress are making this a top bipartisan priority as we advance the agenda here at home, we will need to work with allies on a common international framework to govern ai i thank these leaders in the room with me today, and their partnership. this is a serious responsibility we have to get it right. so i want to thank you all we're about to go down for a meeting. so thank you, thank you, thank you. >> can you tell us about the

hacking of cabinet officials by china and the concerns you have about that, sir? [ no response >> okay. that was joe biden making some remarks, trying to give us an idea, summarizing maybe a little bit of that meeting he's had with tech executives, saying regulations need to be put in place to safeguard national security and american's personal data and their lives, as well. i want to turn back now to what's happening with jamie cox over at harris financial you had a chance to listen in on this you were talking about the enter section of tech and health care. and tech and health care is going to eventually involve artificial intelligence, machine learning, is there an investable angle in this with regard to how technology will at some point cross with health care via artificial intelligence? >> meta has created algorithms

to predict -- the president referenced cancer research, and meta is already sort of doing it if you can predict the way a protein will act, you can create drugs to treat it. so this is already here. basically, we're going to be seeing the benefits of it in the years to come. but it's not going to necessarily just accrue to a health care company for a drug company like pfizer. it can also accrue to a company like meta. so that's why i'm saying this, the intersection of health care and technology is here to stay >> before we let you go, is there a particular place within health care that you think is the most opportune place to be right now with regard to playing that tech ancillary play

>> medical devices, you know, the device structure of cardiac care in particular is where you will see the most benefit, i believe. diabetes is obvious, but cardiac care is a little more complicated. i think you'll see that area be investable as we move forward. >> jamie, thank you very much. have a nice weekend, sir >> you, too. shares of american express are down more than 3% right now, making it the worst performer in the dow today. it missed on revenues, despite reporting a record number. it also reaffirmed its full-year guidance consumers are still spending, making up 70% of new accounts, while reservations on its restaurant platform hit a quarterly high but travel spending, while still strong, fell 39% from the previous quarter so on a sequential basis our next guest is calling this a

quote unquote slight ly bumpy return to normalcy i tried to characterize it as best as i could in 30 seconds. it's a much more complex story than that, lisa. but take us through why there is a little bit more pessimism in stock today versus kind of what they told us is a more bullish macro narrative. >> yeah. so you hit on it they missed on revenues. they missed by about 3%. it was driven be i a sequential down tick in their build business voluming, that's the spending volumes on cards which came in at an 8% level in the quarter. not a bad number, but well below expectations last quarter, that number was 16 to give you a sense for it the weakness was in two places

travel, not that it was weak, it was still up 14% year on year. but last quarter, it was up over 30%. we're sort of returning to normalcy on travel it's been this huge surge over the last six quarters. and the other unexpected area of softness was u.s. small businesses where their spending was only up about 2% year on year that was a head scratcher, but more positively, u.s. consumer spending, very healthy 10%, and international spending, also very healthy, 17% and the credit metrics at amex continue to be strong. the headline number was the myth on volumes and revenue >> how much can we glean about the overall health of the american economy and the u.s. consumer with american express i ask this not because i'm knocking american express.

more so because american express has a very different customer than many other banks and credit card issuers have. they're higher end and maybe not indicative of a broader economy. how much of that can we take into account, given the story that we have, the macro narrative in the u.s. that we have >> yeah, you're right. of course, they skew very affluent and anything coming out of the pandemic have been gapping further away from their peers in terms of this skew towards the more affluent consumer so they disproportionately reflect spending in the economy, and they are only about 15% market share of all u.s. card volumes, and it skews very affluent probably the results are probably the credit metrics, which are really strong, are an early indicator of this bifurcation we're starting to see a bit.

earlier this week, goldman's credit metrics were really weak, where we are seeing some degradation in the lower to middle income consumer, and the affluent consumer remains really healthy. >> before we let you go, i want to spin forward to what we will see here with some of the payments processing networks like visa and mastercard visa in particular so what's different between the payments processers and the credit card networks opposed to an american express that is much more diversified in terms of exposure >> visa and mastercard are much more global in nature. so we are likely to see a little bit stronger volume growth there, because internationally, there's still a lot stronger growth coming out of the pandemic but on the flip side, they're a much broader representation of the overall health of the economy.

the mid quarter metrics have come in a little light, particularly in the u.s. it was only up about 6%, 7%. so i wouldn't be surprised, especially giving the results today, if the volume numbers for visa and mastercard are coming in at the lower end of expectations but that said, in terms of the stocks, visa and mastercard have been collateral damage into these ai stocks this year. and visa and mastercard have derated about 10%, despite beating on revenue and eps for nine straight quarters so if we see some softness next week, this is an attractive entry point, particularly into visa, because their valuations have derated a bit this year >> visa is a top pick. thank you very much.

see you soon >> thank you time now for the materials sector as we look ahead to the remainder of 2023, data from y-charts shows that the sector typically performs slightly better in the second half of the year than the first half over the last ten years or so, the sector gained an average of 2% during the first six months of the year, compared with an average gain of 6% during the last six months of the year. in terms of the individual stocks that perform well during this time period, we have names like steel dynamics and cortiva. but all that glitters isn't necessarily gold another gold miner, numont is another laggard. as we move further into the second half, keep an eye on some

of that historical perspective th that coming up, the travel hot spots feeling the pressure and which stocks could benefit from the pullback? hexcng iba aer"t ehae"s ckft this your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

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what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup. compliance standards? mm-hmm. so they get the insights they need... yup. in real time... check. ...to make quick decisions? check. aaaand check. that's the solution ibm and a global bank created. what will you create? ibm. let's create. welcome book "the exchange," everybody. i'm tyler mathisen

the white house launching a new pandemic preparedness office, taking over the duties of the covid response team, charged with responding to biological threats that could lead to a pandemic it will be led by former military combat surgeon and retired air force general dr. paul freedricks. amsterdam is looking to ban large cruise ships the city is actively trying to limit tourist numbers for some time the capital would be following the lead of other cities taking similar steps, including barcelona and venice it turns out that cheaper tickets still don't convince moviegoers to state in front row seats. amc is ending the program that priced seats based on their view the program showed moviegoers still choose the seats they preferred even at higher prices. tom, back to you

>> tyler, thank you very much. coming up, beer, doritos and ista bubbles. it's a world cup edition of free buys and a bail. "the exchange" is ba i2:ckn 00

welcome book "the exchange." the women's world cup is officially underway, and we are looking for opportunities in some of the big names sponsoring team usa

it's time for three buys and a bail, world cup edition. joining me now with her take is cnbc corrector victoria green, chief investment officer at g squared private wealth this is a fantastic way to kind of get into this, and talk about soccer let's chuck chipotle, up more than 50% this year, said to report second quarter earnings next week, and analysts are expecting positive results wells fargo calling it one of the best performing restaurants on the street. do you like it >> absolutely. do not underestimate the power of the burrito, and they are doing a goals for goals collaboration, one of the biggest sponsors of u.s. women's soccer good luck to our ladies tonight versus vietnam should be a good opening win, i think. but chipotle, they are the best on the street. they're so advanced, their menu

is always changing honestly, we believe their store growth town up to 9% i feel like their advancements in digital has been huge, one of the reasons they've moved forward, because you can buy on their app, go in the stores, get it delivered and they even have good curbside pickup so good food >> all i know is the chipotle near me is always packed next up, coca cola shares off 2% this year, but coke closed just short of its 52-week high yesterday coke is set to report wednesday, but pepsico posted better than expected results a few days ago. victoria, will coca cola be able to prove itself as the superior soda stock >> absolutely.

and they are a pure play soda stock. they're just a strong company. their brand power is phenomenal. and they have been dabbling a little bit into the alcoholic beverages, which is a wild card we feel could generate more growth down the road they have a great brand presence globally the way they are doing their pricing and the way they have seen coke zero, which grew like 8% last quarter. they have this consist tent growth so yes, staples have been under pressure, but i see them defending their margins, and all the geopolitical strife, that's been priced in for over a year so they have good growth trajectory going forward >> anheuser-busch, shares down 10%. the company continues to deal with the fallout and backlash over recent bud light campaign featuring a transgender

influencer the boycott has cost the beer the top spot in the u.s. but you say that's already priced into the stock, and that this could be the entry point. >> yeah, i feel like i might get a lot of hate here please don't hate on me, but i see bud as a buy here. it's not about the u.s the u.s. is only about 28% of their overall revenues they're a massive global stock it's more about central and south america. look, it is what it is we expect 15% drop in volumes in the united states. i think we are all aware some of those bud light drinkers are not coming back, but their brand is still strong they still have a lot of global growth you like what is priced in we see this as a bottoming moment we would like to see it get above 60 it's well on its way there and they could surprise in the second half, as they continue to see global growth elsewhere. if the u.s. doesn't completely implode, we're expecting it to be an anchor

so we see a little better value here >> so there's the three guys -- buys here's the bail. at&t, 30-year low on wall street, and that report from the journal, basically that at&t and verizon left thousands of lead-covered cables across the u.s. has caused that downside. there have been a slew of analysts downgrading on both of those telecom stocks at&t shares down 20% this year we'll get results from the company on wednesday before the opening bell it's a bail, though? >> it is i know i'm recommending a bail on a 20-year low multiples are only attractive if the e-part of the multiple is consistent they have been -- they were already slowing down you haven't seen this company be able to grow, it's facing big,

big competition. the fiber and wire line looks like is slowing. when you have those headwinds, and it's so easy for consumers to break contracts it's easy to switch your plan, and at&t has not been able to grow their wireless users, and grow their cash flows and their earnings so i look at the stock, and this is just the camel that -- the straw that broke the camel's back and the estimates range from $10 billion to $43 billion of what the cost may be, and at&t is absolutely the most exposed of the telecoms so look, i get it. it's cheap, but i see this as a value trap you're buying a stock that couldn't grow its earnings >> tell us what you really feel, victoria thank you very much. good luck to our women's team tonight. have a nice weekend watching it. >> all right

the fifa women's world cup airing on telemundo and streaming on peacock, as well. catch all of that women's soccer/football coverage on the networks of nbc and streaming. still ahead on the show, consumers have been spending on experiences rather than goods. but cracks are starting to emerge in places like travel according to new data, the travel names that could take a hit, coming up next. speaking of experiences and spending on them, check out shares of disney, spiking on a scoop by cnbc.com's own alex sherman. he reports that espn has been in talks with both the nfl and the nba. shares are up more than 1% for disney on those talks. they could be looking at a possible minority interest in espn read that full story on bcom "the exchange" is back after this

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welcome back to "the exchange." the era of revenge travel, looks like it could be slowing down, according to new cnbc analysis we're joined now to kind of dig into that data i thought all the airlines told us it was just the middle innings of thi welcome back to "the exchange." era of revenge travel could be slowing down according to new cnbc analysis seema mody joins us to dig into that data. i thought airlines told us middle innings of this travel surge? >> attention of economists not just airlines, dom look at what was written this morning. vacation demand in the u.s. starting to soften experts clock ihock it up to go overseas and fewer foreign tourists coming to the u.s shanghai to sfo, beijing sto l.a.x. demand down from pre-pandemic levels exploded over the last two years fallen in maui, miami, florida keys, jersey shore

diamond rock hospitality and others most exposure to these summer resort destinations and underperformed their peers and broader s&p 500, john borque, hotel reit telling us across his portfolio average daily rates down about 30% from 2022 levels. still up 70% from 2019 meantime, some asset-like hotel brands like marriott, hilton, hyatt, stock prices jumped 20% or more this year. bernstein reiterating buy rating on marriott today citing international presence earnings kick off next week. look to hilton and wyndham on wednesday and royal caribbean. cruise fares anticipated to increase the next couple months. >> limited questions to ask. stock side of things you mentioned operators. management companies that manage the hotels that reits own.

the real estate of. >> yeah. >> where has there been better performance? has it been in real estate side of things people who own the properties or those who make the money selling hotel rooms managing those properties? >> great question. hotel brands, marriott, hilton, hyatt outperformed real estate investment trust higher cost of capital and sitting on properties in a lot of destinations prices are coming down. >> vacation hot spots. maybe news you can use here, seema? if i was to take a more discounted vacation from where it has been over the last couple years where would i go >> tell you, just look at data looking to check into a hotel for $200 or less look at myrtle beach. san diego, galveston, texas. beachy destinations to find good value as prices go down. new york not so much prices going up. >> don't have to sell me on myrtle beach i'm a golfer there all the time see you soon.

rapid rate hikes on the hunt and a bumpy few years turning towards municipal bonds. one strategy quietly gained steam in the space thanks hlowe asset minimums making up 23% municipal market ownership outpacing mutual funds at 20% according to data from jpmorgan what's so appealing about them bring in jeff johnson senior vice president at appleton partners for more on the state of the municipal market now. as a former mutual fund guy, jeff, i know the difference between them take us through why an sma is more of a scustom solution for client as opposed to a mutual fund-type product. >> you're right. sma extraordinary growth

last three, four years managing individual households portfolio. funds not commingled like a mutual fund or etf a lot more control a lot more customization a year like last year with a lot of tax laws harvesting we worked closely with clients to kucht umum i customize, and determine losses they wanted to realize plus transparency pip look at your portfolio every day, see exactly what's in it smas have become almost a trillion dollars in assets in a $4 trillion market very compelling. >> jeff, one of the big things about smas as well i mentioned this lower barriers to entry you used to have to be a high net worth individual with a big account size i mean, forget hundreds of thousands. sometimes in the millions of dollars to be able to put a customize portfolio, muny bonds

together what's it now? >> $250 now the minimum, dom, and at appleton really what we start with with our sliclients, advisors outsourcing clients' municipal investment to an sma strategy, but there's reasons for that i think technology's a key part of it. very sophisticated grading systems, portfolio accounting systems. where we can buy a block of bonds and allocate it across hundreds and hundreds of portfolios knowing exactly what that's doing to the portfolio from a duration standpoint, from credit quality. so i would say technology is really helping us get the minimums lower which becomes more attractive to a lot of investors. >> so jeff, pull the curtain back a little here we don't want to give away the store. you have a secret sauce i'm sure picking municipal bonds. what exactly is the opportunity right now? what types of bonds are you

buying geographic locations specific types of bonds? is it revenue bonds? general obligation what exactly is the tax advantage opportunity now? >> yeah. i start with the yield curve, because credit selection and research, in-house research team has to approve any bond that goes into a client's portfolio but really, the yield curve right now is the story in the municipal market because you've got an inverted yield curve. so bonds in two, three, four years in the municipal market are actually yielding more than 10-year bonds right now. this has never happened in the municipal market ever sometimes seen it in a very short end of the curve, but that let's us do a barbell approach to building out a portfolio where we can invest monies in the short end of the curve picking up that extra yield, but also going a little further out, 10 to 15 years so it's very compelling right now. you can get a 3% yield to

maturity in an intermediate term municipal bond fund. an attractive entry point. haven't seen those yields in quite some time. compelling. >> a couple seconds left here. do you get scared about what the fed could do for rest of the year >> i don't i don't at all because it's pretty assured they'll go 25 basis points next week, put you in the 5.25, 5.50 fed funds range. priced into the municipal market i think we're very close to the top of rates, and i think going forward reinvestment risk becomes something that municipal invest verse to think more about. you don't want to be sitting on all of this cash and lose that opportunity to get the yields that we have right now in the market so we're, you know, very constructive and we think it's a great time to enter the asset class. >> all right jeff johnson at appleton thank you very much for the muny

update see you soon. does it for us here on the xvp. coming up on "power lunch," huntington back shares reporting better than expected discussing results coming up on "power lunch." keep it here back after this quick commercial break. have a great weekend.

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constant contact's advanced automation lets you send the right message at the right time, every time. ( ♪♪ ) constant contact. helping the small stand tall. welcome to "power lunch. seema mody today welcome, seema i'm tyler mathisen dow try forge a perfect ten. ten in a row if it can hang on longest winning streak in six years. earnings and the fed allowing for more gains next weekend and beyond we explore. >> a societal an