cosmc. cosmc's. good afternoon on a sweltering friday. welcome to paula alongside courtney reagan i'm tyler mathisen glad to could join us. a massive biotech buyout buy owe jen bulking up it's drug portfolio what's been an arms

flas space of late. plus another day and another two power players. first ceo, higher rates new bank rules. how they're holding up and speak to the hospitality group more insight in the keeper all three indexes higher today after the dow did snap that 13-day winning streak yesterday. hey, maybe we can make it 14 days out of 15 that are higher busiest week of earnings coming to an end. chevron beating estimates in larger sales volume. meanwhile, rival reporting demand and p&g beating results releasing a gloomy outlook. >> here to help us dig into earnings and other stock stories discussing across the hour, managing partner and poll portfolio pmanager. maybe drill in a little bit so to speak on the oil companies?

>> oil stocks made expectation we knew not going to grow in pretty much oil over $100. i think what we looked for what we saw, stabilization, if you look at capital expenditure, still spending money and returning to capital shareholders dividends are there. fear a couple years ago when oil was close to $30, $40. can these companies still survive? given the run they've had in two years, i'm actually surprises they're only down several percent. long-term investor diversify portfolio, companies likes a chevron, exxon -- >> need to be there. >> be there. great cash flow. great dividends. one of the other things last couple years investors flocked to these stocks because interest rates were zero getting a 4%, 5% dividend yield doesn't matter to a lot of people looking for growth. don't have momentum investors or income investors anymore

these stocks are volatile. beta higher looking backwards. a diversified portfolio you want to own like a chevron continues a strong balance sheet. >> very strong in the permian basing and around the world. move on, then, to consumer names reported p&g among them >> p&g pricing still there so in a way, good for the market that companies and consumer staples, aren't cheap. trading above market multiples unlike those that trade below, pe is north of 20. what they showed, pass price increases on consumer not going down label. question is, can you get price increase going forward and can you get volume growth? most of the increase has been on price and volume not as much especially looking at other companies like a nestle. so, again, a solid balance sheet. these are companies you want to own right now. everybody's looking at momentum

and how do i get to ai companies like -- >> more nvidia, give me more nvidia, more nvidia. >> exactly another chip that will do really well or microsoft to do something different. but these are stocks that today the momentum investor's not looking for. again when things slow down, we know eventually that happens, stocks you want to have in your portfolio. >> one of these tyler compound questions. continuing on the consumer theme. we heard from mastercard, american express, visa, to your point. i want to know what you think about those names specifically also if, then, that frustrates the fed to some degree because consumer is spending and trying so hard to sort of slow things down economically. >> so that's a really excellent point too. we like it 15 times earnings. great balance sheet and they focus on, spent a lot of money during covid

a lot of other companies did not do reaping benefits now stock back a little since earnings, only because they didn't match or beat expectations did well double-digit growth. going after gen z. the generation that wants to have experiences they want to have the amices card traveling over seas something happens, call amex it's incredible. seeing resilience in expenditure fop your point about the fed, because wages are still going up wages keep going up embedded inflation our system tough for the fed to fight to get to 2% how can you still have wages going up, price increases on input prices things like that. that's a tough thing for the fed to do and which is basically why you see the state we're in. >> key earnings out next week. apple, caterpillar, amazon and others obviously apple is a bellwether

stock. it's up in that category of the chevrons and exxons. got have it in a divert phied portfolio. >> apple interesting look, sat here ten days ago and i told you google and meta will exceed expectations most people would say, well, we're not sure. a lot of headwinds with those two companies i think apple high bar now people are looking to see how is apple going to keep growing? great capital, but what's 159 going to do, service revenue going to do? the 15 how do they keep growing they are a really good global consumer. >> for sure. >> people looking closely to that especially if you look where the dollar is. dollar starts getting weaker, talk more about that later cost more for people overseas. i think we have to look at apple. a really interesting story, uber up 80% for the year. continuing the growth cash flow?

are people, as people travel more, do more rides and food that's a stock also has a high bar as well. starbucks reporting. a good stock for global. >> right. >> how are peel doing overseas europe slowing down. what do they say about china china spending a lot of money to grow again does that, how does that portend for starbucks. >> also higher unemployment in china than in decades. very mixed picture there. >> yes the chinese thing is interesting because it's opaque. right? telling us one thing we don't know what's going on really over there. don't have the covid rebound we did. people expected that their real estate is in a tough situation but they can print money just as we printed money right? think about the money. that's going to be interesting as well. >> all right stick around with us most of the hour and glad to have you do that take part in these interviews. when questions come to mind, jump in.

error this week we saw the fed raise borrowing costs for banks by a quarter point after pausing in june. regionals a focus for investors after deposit runs led to collapse of svb and signature bank earlier in the year this season showing relief under way. see regional bask aetf krt bon best pace since 2016 valle mac, greater stability in capital and growth in deposits than the market expected for more bring back our friend valley bank ceo ira robins how's business >> better than it was back in march. wonderful to see you, tyler. >> yeah. good go sort of segment by segment? one thing everybody is worried about here is commercial real estate what's your exposure there mostly office buildings that seem to be attracting the greatest worry

>> yes great question i think back in march there was this fear there was a systemic exposure across the entire midcap space you saw with earnings results strength and resiliency two variables came out of it deposits strong for many regional banks such as ourselves. credit, a benign quarter for us. valley has abouts $3.2 billion until our portfolio. $153,000 of loans in entire office portfolio that's it misnomer commercial real estate sits in a regional base. wells fargo put reports out 7.5% reserve on office. 60% and commercial real estate sitting in office. when people dive in and look at underlying metrics and ten qs putting out, find a different story than promoted the last couple months.

>> i have a question on basel rate open comment period. talking tab yesterday. though you have to have more capital on hand to comply with this new regulation what would you take it away from? share buybacks, dividends? >> yeah. i think it's really just going to end up holding more capital right? you think about sort of how you think about return on investments, what asset classes you're in. the fed and other regulators should be careful what they're doing here when we think about what's happened since 2010, really have taken a large segment of assets oust banking space private credit fund as sample. $300 billion of outstandings in 2010 $1.5 trillion are sitting in the shadow banking system today through private credit funds this is really where we want to put specific estates 30% credit funds owned by public pension funds.

really that's what happens is the fed increases regulatory requirements on some of these banks, we're now seeing far too risky for banks and putting in public pension funds really what we want from a global market perspective? i think the fed is knee jerkin reacting what they're doing when it comes to capital ratios and need to think to other consequences here. >> our question for you on loan growth before do you see the biggest loan growth in the last quarter and where do you see it going forward? the other side is are they things you didn't expect in terms of growth coming down in certain areas? >> i think consumer slowed a lot of loan growth down. look at auto portfolio and across the whole eastern seaboard really come down i think where consumers look at interest rates, inventories have increased a little across that space. really hasn't been much loan growth for us in the auto space. residential mortgages came down on a function based and inven attorney across the entire

environment. refinance market basically is dead seeing a little growth still in commercial real estate and a little in cni. over 10% on a lean quarter in cni. that said our borrowers are concerned what interest rate environment's going to look like i think beginning individually to hold back their desire and ability to move forward on certain projects for us did about 10% loan growth annualized for this quarter. our pipelines a third of where they were. >> ira, are you in the camp that believes the fed will keep interest rates higher for longer and if so, and inflation may stay higher longer if so what will the impact be on your business? specifically on, let's say, the residential mortgage business where people may be less inclined to take out mortgages nearly 7%? >> yes i believe rates will be higher for longer i think mentioned previously this is a function of where wages are. long as there's wage growth there's inflation.

i believe that that's going to really prevent inflation from coming down to some of the desired targets. as a result end up being in higher interest rate environment g. for business? for you? >> really it's the curve that impacts us i think overall results for us positive based on inverted curve. inverted curves are cyclical don't stick around going back to a more normalized pace and high interest environment good for banks and the economy in general had eight inflation across the entire spectrum of any individual assets based and these monetary policy we've had leading to a whole network of other issues i'm happy to see higher interest rates. >> ira, thank you very much. we always appreciate your time thank you. a quick thought before we move on. on reasonable banks generally, where are you? >> after we had "the disaster,"

it's going to be tougher for refill banks to compete. ira's doing a great job. think about how jpmorgans, bank of america's getting everything. people want full service for everything, i think the shares going over time. especially haven't seen crack in the credit market. get a crack in the credit market and want to work with a bank going with the largest one becoming more utility-like i just think the valuations for regional banks are not back to where they were before because we don't know the unknown. right? could you have predicted what would happen there, and also risk management's got to be there. one thing you heard deposit growth going up. we know what happened when deposit growth went up for silicon valley bank. energy risk. you have to become a cash manager at that point. you can't have any slipup there. >> yeah. there's no back stop

bedoss it group until it left. >> right we know within five minutes deposits can go. no longer take as week before you get your deposit out puts a lid on valuation metrics. >> you don't see the lines anymore. coming up, biogen betting $7 billion on a rare disease portfolio. what impact on the space plus, ivy league university system, weight of student loans putting a bad taste in younger americans' mouths. happening as the process constantly center of debate. a controversy. why not talk about it? discussing it when "power lunch" returns.

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. 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. my cpa told me i wouldn't qualify for the erc tax refund, so i called innovation refunds. their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your small business qualifies.

welcome back to "power lunch. big news buying for more than $6 million to expand portfolio for the rare disease drug market. shares surged more than 50% before halting pre-market. bring in biotech analyst michael ye michael, i wants to begin.

what does this mean for biogen, this purchase, in the long run >> well, great to be here with you. look,biogen talking about doin more, common theme within the sector why we think it will pick up and get growth back in margin this stock a total laggard over the past few years a story about not only them doing deals, we think it's a good deal. courtney, we've talked in the past, really important to deliver on the alzheimer's drug recently approved five times bigger than this acquisition. >> asking you, the biggest catalyst for this stock? you have a buy rating on biogen. >> yeah. the right message. we are excited about biogen over the next one to two years. of course that is around the core focus of wa kemby can be a $5, $ 6 billion drug

critically important for biogen. in addition, the reality of this deal is important. a billion dollar drug given size, scope and importance what it means. >> michael, a couple questions given the carter administration, merges and acquisitions. could this run into issues secondly, if this, you saw stock reaction rare when buyer goes up. good news for the stock in the marke market who do you see then doing moshgt acquisitions in your crystal ball pharma hasn't delivered. bristol trading, pfizer down where is that going, in what areas do you see acquisitions happening? >> very good i do think what we, we're hearing this morning was some increased chatter around potential for senator warning to

probably raise more concern. she has been doing that in the past certainly with the verizon and pfizer deal. both by way of knowledging $27 billion and $40 billion. we expect could be some particularly because biogen historically had questions around rebating kickbacks and other bad acting things. we think the deal will go through but i want to emphasize that bringing me to the second point which is look. biogen doing this deal today i agree with you bristol is probably the other actor i think that has to go out and do deals advi as well thinking ftc will try to deter these deals. long as there is no real case there it's going to take time, but these deals are still going get through, if that makes sense. >> michael, leave it there thank you for your perspective good to see you.

intel's results giving wall street welcome signs for recovering demand for chips. strong results as well across much of big tech everything we learned, is it pointing to nvidia bigger later in ausugt? be right back with that and more. retirement, but i wish wed more cash. you think those twod have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear

that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. from big cities, to small towns, and on main streets across the us, you'll find pnc bank. helping businesses both large and small, communities and the people who live and work there grow and thrive. we're proud to call these places home too. they're where we put down roots, and where together, we work to help move everyone's financial goals forward. pnc bank. the best advice i ever got was to invest with vanguard for my retirement. the second best? stay healthy enough to enjoy it. so i started preparing physically and financially. then you came along

and made every mile worth it. hi mom. at vanguard you're more than just an investor, you're an owner. helping you prepare for today's longer retirement. that's the value of ownership. with your hearing, if you start having a little trouble, you're concerned that it's going to cost you money. to this day i only paid what i had to pay for the device... when i go back everything is covered. there's so much you're missing by not having hearing aids. we'll find you a hearing aid that fits your lifestyle and budget at one of our over fifteen hundred locations. call miracle ear at 1-800-miracle and schedule your free, no obligation hearing evaluation today.

welcome back, everybody. time for today's "techcheck. deidre bosa looking back at the big week for technology earnings and what it could mean for others, nvidia going forward. >> arguably biggest earnings winner of the week and didn't even report. however, unspoken giant in the room as other mega caps talk and their spending plans all of which will benefit the chipmaker. alphabet, microsoft, meta in one way or another talked increasing taking advantage of the opportunity in ai and between the three of them a combined market cap of $5 trillion and 37 mentions of capex on earnings calls. capex capital expenditures, big purchase as company makes to physician for the future big investments. in the case of big tech much is cloud infrastructure giving it

compute power to run their technologies in the age of ai, that means less traditional server chips. more advanced gps that nvidia makes. that shift was crystal clear this wauquarter. losing side, intel, stuck in the traditional world of server processors, and writes in a note, in our view this most negatively impacts intel and amd over time as ai server seeking demand offset by slowing non-ia sped working to change that, but pressure is on and tech giants, they're making their spending plans now. also working on their own ai chips. >> all right deidre, thank you. deidre bosa reporting. coming up on "power lunch," we take think a consumer slowdown is coming, especially dining out spending picked up in june and inflation under control. will restaurants keep traffic

eatong spk a ceo of a hospitality group to talk about it.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "power lunch. i'm contessa brewer with a news update soldiers ousting niger's president say the country's constitution is suspended. declaring a coup leader as head of the state today the soldiers overthrew the democratically elected president over claims of the ba governance and worsens security, but before this uprising, this week niger seen as the west's movie reliable ally to fight jihadists in the region. liberty mutual pulling business owners policies from the wildfire-prone state of california that change in effect from october 1st. the company spokesperson says the exit is because of profitability challenges liberty joins a growing list of major insurers backing away from california earlier in the year saw state farm saying it would sell new homeowner policy insurance there. illegal to vape in public spaces in illinois the governor signed a law friday

banning e-cigs anywhere smoking is already prohibited. the law begins next year and violators can be fined as much as $250. courtney >> oh. contessa, thank you very much. inflation starting to cool, restaurants face a host of challenges not just related to boost costs. high construction costs impacting the business jim wade ceo of union hospitality group, guest host is still with us as well. chip, thank you so much for joining us speaking earlier on the show about the state of the consumer, and where exactly consumers are right now when it comes to being able to still do things like eating out, even in the face of still high inflation albeit rate of inflation came back what's your viewpoint what consumers are willing to pay for right now? >> well, first of all, thanks. delighted to be here right? consumers are, i think,

encouraging for us we see demand very strong. traffic is up. so we're excited about the trends that are happening here in new york. new yorkers are remarkably resilient, and so while they are certainly sensitive to inflationary increases in commodity costs as low as labor costs, that has not slowed them down materially from dining out at a restaurant. >> are you seeing consumers making trade downs when it comes to any of the restaurants within your portfolio perhaps or even menu items they're choosing when they are eating out of their home >> yeah. i would say we're seeing a couple things. from, number one, seeing consumers dine a bit earlier versus the pre-pandemic. right? so we are seeing traffic up significantly between 4:00 and 6:00 that 6:00 hour is now vibrant and alive and it was the old 7:30 or 8:00

with regard to your question, yes. i think the consumers are making different choices, maybe even instead of a full bottle of wine getting a glass of wine, and then just being more strategic with their choices. >> six is the new eight. why are people doing that? is it because they want to get home sooner or because -- they're not chained to their desks until 6:00 and then want a 7:30 table what is it >> really this new workforce dynamic. right? the idea people are, would go from home. certainly that is happening more on fridays and mondays whereas we believe that because there's no boss around the corner that they may be shutting down their computers at 4:30 and then heading out to our restaurants and other restaurants here in new york >> you just said something very interesting. diners are going earlier are your friday evenings less

busy because people aren't in the city and, or maybe getting away to go either to their weekend house or just go to their home and stay there? >> yes answer to that is, yes right? that is, now, our thursday business is significantly busier the thursday is the new friday for us yeah. >> chip, when you look at the chains that happened during covid. are you seeing more delivery seeing people ordering and picking up has that moved, changed for you and kind of how does that affect your business? >> sure. moved up significantly we have a brand here in new york called daily provisions. four of those locations. it's a fine, casual three-part restaurant so catering as well as to-go and pick-up is up inexcess of 20%. >> breakfast sand wiches so good try it if you haven't.

when it comes to running the business, talked consumers, but what are you dealing with now when it comes to the costs you're facing? >> sure. first and foremost, labor costs. continues to escalate. and there's a number of factors that are contributing to that. we've not seen a material reduction in labor costs the way we have in commodity and food costs. second area with regard to inflation is cost to build new restaurants. the general contractor costs their labor, just the cost to get equipment is significantly higher, again, than the pre-pandemic period. >> and when it comes to availability of labor is that typical right now in new york city. >> the answer to that is, yes. right? i think we continue to see across country, but here in new york, employees making different choices. maybe moving into different

industries maybe they're leaving the city, because of the cost of housing, but, yes we are certainly feeling this issue with regard to a shortage of hourly and management personnel. >> fascinating stuff chip wade, thank you for joining. >> thank you delighted to be here. any restaurant stocks that you own? >> we do not at this point you know, i -- i asked the question on delivery on uber uber delivery has done really, really well, but it's hard to own restaurant stock long term get them when really cheap how did that become really cheap? during covid became expensive. a business to manage costs in a very quick and, adjust quickly especially now with wages going up haven't seen any falls in unemployment. >> thanks very much. appreciate the guest from union scare hospitality. coming up, make joover, tryg

to be a one-stop shop in beauty and wellness. "power lunch" will be right back. y. we've been married 45 years. i'm taking a two-year business course. i've been studying a lot. i've been producing and directing for over 50 years. it's a very detailed thing and the pressure's all on me. i noticed i really wasn't quite as sharp as i was. my boss told me about prevagen and i started taking it. i feel sharper. my memory's a lot better. it just works. prevagen. at stores everywhere without a prescription.

as the u.s. economy continues to power ahead small

businesses are adding to the technology tools that helped them get through the pandemic. today jon fortt brings us up close with the ceo of a software company helping salons, barbers makeup artists and others run their operations hi, jon. >> yeah. danielle founder and ceo of gloss genius whose tools help customer management in the beauty and wellness industry the company announced a $28 million c round this week led by al catterton bringing valuation over half a billion dollars. danielle's interest in the sector kicked off at princeton helping classmates get ready for social events but trace her roots for a boost before her teen years from her grandmother. >> my grandmother would write very old fashion, traditional, write a lot of cards and notes to folks that she knew whether thank you notes or happy

birthday notes or congratulatory notes and i remember visiting a hallmark store with her one afternoon, and i saw her pick up a lot of different types of notes, and, you know, she bought quite a few of them and i realized that i could make these. and i asked her if she would give me a little time to make some of them and i sent her a package of greeting cards i had hand painted and i sent them to her and she called me and she said, i'd like to buy some from you. >> what a way to get your granddaughter started. danielle spent time on goldman sachs before launching glossgenius. a field including rivals like fresha, mind, body and fitness and wellness i talked to danielle this morning she thinks demands in her industry will hold up even if consumer spending faltered

and could win delivers bitter features to her target small-business customer. >> the beauty wellness category is made up of experiences and important kind of small delights that consumers reach to, and there is such things as lipstick effect when, you know, during periods of economic, you know, kind of stress, seems like sector spend is up because people want to look bet. feel better about some things they're doing and particularly in the job force they're in, too. a lot of studies there when i look at all of this taken together i think there's still a lot to watch but the category has for a time proven resilient and we're expecting to see the same type resilience throughout this period, too. >> guys, a revolution happening now in software for small and medium business. in specific history versicles,

somewhat reflected in stocks like intuit and build. procore and toast and construction, logistics and restaurants. danielle at glossgenius one to watch. >> are her customers mostly salons or individual makeup professionals, artists >> mostly -- well i don't know the answer to that it's a combination of salons, artists, barbers and then aestheticians. doing nails and whatnot. verse sizes. i don't know by volume probably by volume it's individuals. like a number of accounts, but i think volume of accounts at this point probably -- >> it's a record keeping, payments, scheduling tool? >> it is absolutely. there are more -- interesting. there are vertical players dealing in a specific industry and horizontal players like in gusto trying to provide that capability to all sorts of businesses so there's a bit of a push/pull.

are the horizontal players going to roll up and overpower vertical players or versicle players so good at serving that particular niche they'll win out? will a big player like an oracle eventually roll everything up? who knows. a lot of action. smaller businesses witnessed during the pandemic we really need the software. data on our customers serving them in many ways. cannot be bun with just paper and cash. >> makes sense. a battle brewing admissions under fire in wake of the supreme court's ruling on affirmative action would this unfairly funnish students still deserving the spot and who should decide we explore when "power lunch" returns.

(bobby) my store and my design business? we're exploding. but my old internet, was not letting me run the show. so, we switched to verizon business internet. they have business grade internet, nationwide. (vo) make the switch. it's your business. it's your verizon. meet gold bond healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers and 3 vitamins, you can pay more but you can't get more. gold bond. champion your skin.

this is your moment. critics declareore oppenheimer is magnificent. the new york times calls it staggering. it's utterly enthralling and one of the best movies of the century.

all right. higher education in focus big time at the sprooem court's decision on affirmative action last month the discussion around fair admissions far from over, though federal probe launched into harvard admission preference for so-called legacy admissions. same time more and more schools announcing they are ending the practice altogether. talk about it now with former president of amhearst college

who dropped legacy admissions during her tenure and also ceo of application nation and former associate dean of admissions at upenn. welcome to you both. why did you cease legacy preferences for the children of alumni and what has the effect been >> a great question. thank you. i'm delighted to be here we did it as the next step in a series of steps, picked to try to level the playing field and diversify the student body social economically and racially and how it's gone, there's only been one class admitted since we did away with legacy preference, and the percentage of legacy students admitted went from about 11% down to 6% over the course of that year. with just one year of data, it's really hard to say what the

effect would be long term, but as we knew, you see that there are students highly qualified and will continue to enter elite, private institutions. >> we'll get to that question because i think there's a little chicken and egg here, i guess, in this whole area let me, as you debate this, you stepped aside as president so you may not know this. i'm wondering how much as you debated doing this, the idea that, well, now, alumni aren't goal to contribute as they used to how big an issue as you debated whether to end legacy admissions or not >> a really important issue and it's not just whether ellume nye wo -- alumni would continue to give they are wannabe interracial communities in the country important fo people and people

of every generation that we continue to build intergenerational community and what alumni do for colleges and yifrts is not just give money but support them in a whole hosts of other ways. so, yes. we did worry about it. we looked at data. it. we looked at data. everything we did was heavily data driven. amherst has an extraordinary dean of financial aid from m.i.t. in the end, we realized that it was what opportunity has shown it was, and that is a problem in driving disproportionate numbers of the very wealthy into elite colleges >> sara, i'm curious if you have an applicant to a college that is a legacy student but also checks the other boxes that that college would wouldn't to have in a prospective student are you dinged if you are a legacy, or just not added given any extra consideration?

>> in the current state in college admissions at most of the selective colleges in the country that still value legacy, that legacy student is going to be significantly -- has a much higher chance of getting admitted but all students aren't equal. so it's very difficult to compare a really strong legacy applicant to a really strong non-legacy applicant the variances and the nuance is so subtle when you are that admissions committee room. >> in just a moment, he just has a daughter who is starting at a california state institution where they do not have legacy admissions sara, are legacy admitees getting in because they are legacy, or because they are better applicants? or a little of both? >> we will have to ask the colleges the colleges are not very transparent about any admissions data trying to get our hands on the acceptance rate between legacy

applicants and non-legacy apc applicants is hard to find what we heard through this complaint and the investigation by the u.s. department of -- >> at harvard? >> against harvard is legacy applicants at harvard are seven times more likely to be admitted to harvard than non-legacy. >> we don't know if that is because they are better the applicants they may be the better applicants because their parents are legacies with higher incomes and can afford test tutoring and so on and so forth, that helps boost them. >> there is a polish to an application when a student is coming -- >> surratt >> when you look at the universities who started down this path, the indom coordinates are pretty good. they are the largest per student that we have in our country. which is great but what about lacking at it from the other side to say if we have such a big endowment, why don't we increase the class siz to provide the same quality. as long as you can maintain that, you don't have -- you will

c still have the issue, but you will be able to give the education to more people and because you are just getting your endowment is getting so large and then now you are getting the states looking at it, too. so how is that coming and are those discussions happening or is just that we just want to stay - >> why don't you take a whack at that and thin we will come back to sara. >> i would be glad to. yes, those discussions are occurring. princeton has already made the decision significantly to increase the size of its student body, as you kmay know and others may try at amherst we went up a little bit. there are a lot of constraints you asked about what else it would entail you know, if part of the secret sauce of these institutions is a faculty to student ratio that gives students much more access to great faculty, then you have not only to add students, but you then need to add a faculty

as well. >> so, sara -- go ahead. finish your thought. >> my thought was i think the schools that were featured in this opportunity insight study should be considering the possibility, and that's all. >> let me layer something, sara, on to what surratt's question was. that is, you can expand and thereby admit more students who are non-legacy and maybe lower income but is another way at it to reduce the price of college? >> i don't see that happening. >> i don't see that happening either at all, but if you want to make college more accessible and have a more diverse class, that would certainly be one way to do it. >> and i was just in a documentary, and a bug argument -- >> "exclusion you" >> yes and these institutions have such a high endowment, yet the class size has really remound the same

at most ivy league institutions. princeton, that's unusual. the class sizes stayed the same. i am an admissions expert. i want to get back to something important and why harvard is under the legacy they admit to giving legacy applicants an additional look. working an an admissions office for ten years, that additional look is quite significant. when i worked at an ivy league undergraduate admissions office it was a separate office doing a second read with a separate legacy committee so we have to be aware of the fact that these ivy league institutions aren't just saying, well, we've got two equal applications, one's a legacy and one's not. there is a lotz more involved when it comes to the legacy applicants longer reads. >> fascinating conversation. >> absolutely. >> we like to have you both back to explore this is one that is going to be lingering for months, if not

years. are thank you very much. sara, thank you. and surratt, thank you for bringing in a little personal note as my son, a 17-year-old, gets ready to apply to schools all right. >> mine has 15 years to go. more "power lunch" lunch is next stick with us. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. i was told my small business wouldn't qualify for an erc tax refund.

you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. [coughs] good to go. yeah, i think i'll get a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. no. i'm going to get a second opinion. with innovation refunds, there's no upfront cost to find out. so why not check like i did for my small business? take the first step to see if your small business qualifies for the erc. 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. 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. 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. ♪( please don't go by harry casey, richard raymond finch )♪ ( ♪ ♪ ) ♪ (please don't go) ♪ ♪ (please don't go) ♪ ♪ (please don't go) ♪ ♪ (please don't go) ♪ ♪ (don't gooo) ♪ ( ♪ ♪ ) ♪ (don't go away) ♪ pre-order now and get a free storage upgrade. ♪ (please don't go) ♪

welcome back before we go, let's get final thoughts on the market you mentioned the dollar. >> yeah, and i think it's going to be important. one of the things that we rarely talk about are commodities and commodities today are 3% of the s&p. apple and microsoft market cap is bigger than the energy and commodities sector completely. but as the dollar weaker over time, the demand for commodities as they increase is going to increase the prices. people need to look at that. that's an investable area, whether it's copper, aluminum, steel. demand will increase with inflation, you want to own hard assets, too so that's an area i think that's unloved, underappreciated and i think could be good opportunity there. people have forgotten the ten years of growth, go back to the late '90s, early 2000s, what did well hard assets. >> do you see the market struggling at all over the next couple of months

usually it's a seasonally tough time we got 20 seconds. >> i think you need the rest of the stocks other than the -- for the seven to come back you are seeing a little bit of that i could see the market pulling back just because we have had a 20% run quickly. >> thanks so much. >> thank you. >> great to see you. thank you. nice to be with you, court thank you for watching "power lunch." >> "closing bell" starts right now. thank you. welcome to "closing bell." we are going to be joined momentarily by professor jeremy siegel of the wharton school for a look where this rally can go from here and that's where this make or break hour begins with stocks on the move yet again the dow might have given up the 13-day win streak yesterday. not its momentum though. it's rising again. verizon, boeing among the gainers. the s&p looking for gains after the fed's favorite read on inflation came in largely in line with expectations as a result, interest rates, mostly lower, and that