yeah... ♪ welcome back to "squawk on the street." i'm carl quintanilla with leslie picker is the pause set up for a pause? chief strart gist will join us. and citi's head of commodities, ed morris, with us. later, an exclusive with the ceo of sunova, first on cnbc after earnings let's take a look at the markets, about an hour and a half into trading here green on the screen. nasdaq the laggard here. the dow up more than 300 points.

seeing a bit of a bounce as we're about 85% of the way through earnings season at this point in time. a lot of questions we talked about last hour, you talked the hour before that about the overbought status of the market, how we reach peak fed. a lot of fed speak this morning. looking ahead to cpi and ppi later this week. >> ppi on friday in the wake of some of the international ppi numbers, which, of course, are negative in a lot of cases. meantime, banks helping to lead, better than a percent. industrials up a percent berkshire up a couple of bucks. >> berkshire helping lift other insurers because they showed how much of a tailwind higher rates have been to their business. now sitting on $150 billion worth of cash, buying $10 billion worth of treasuries every monday as we pointed out, today is monday >> yes see what ackman says about that. in the meantime, rbc raising e s expectations for the s&p for

'23 and '24 by $1 and $2 respectively she does maintain her year-end price target, concerned this year's rally is due for a pause. she's not the only one wells still expecting a mild recession next year. jpmorgan, morgan stanley, both concerned rising rates could pressure equities. our next guest thinks there's time to invest joining us, wolf research chief investment strategist, chris, welcome. >> thanks for having me. >> paint a picture of what the potential pitfalls are in the next six months. >> yeah, so there's a host of pitfalls, i think. i think the biggest one, foremost is oil prices i think the quickest thing that can cause a disinflation to go away is higher oil prices. that's the thing we're most concerned about because that leads to inflation, starts being an input cost. the other thing we're closely watching is the dollar the dollar weakness we saw in some recent sessions, to me, was a potential red flag given all

the treasury issuance that's expected to come in the upcoming quarter. >> not a delayed reaction to any ratings action, for example? >> no, not really. i think the ratings action last week was one of many indicators. i think markets were overbought. i think the issuance spooked the markets the most and energy prices after their three-week run pushing hard and higher. it's the factors all -- and what was an overbought market, right? so, we were saying it's as good as it can get, and it felt that way. >> what are your main concerns with regard to oil going higher? what do you think are some of the catalysts there? we saw inventories come out, didn't have too much of an effect you know, demand from china seems to be pretty stagnant. what is it that you're really worried about on that front? >> i think it's opec i think opec wants to put prices higher you know, i think one of the things we underestimated this year was the impact of the

strategic petroleum reserve and how it put downward pressure on oil prices, by an extension, gasoline prices, which helped the consumer that's why there's been upside surprises to the consumer so far year to date and it feels like opec wants to -- wants higher oil and it's hard to mess with a cartel that big. >> we'll talk to ed morris later in the hour about his view he's been maybe not as bullish as some. on the issuance thing and the impact on equities, would you expect it to hit mega cap tech if so, can industrials and banks and some of the other materials names make up for that can there be an evening of some of these - >> i think with respect to interest rates, it's two-fold. long rates move higher in the long term from a supply gut into a commodity that remains very resilient. i think as we get six to nine months out, i think yields will be lower on the long end because the economy will slow from the impact finally of all the fed rate hikes it's happening at a much more slow and measured pace than

something we've seen in the past. >> so, ten-year, i saw one target today, rg o'brien looking for 4.6 by year end. does that make sense >> i think it will be closer to 3.6 if not lower because i think the economy is going to weaken i think we have to digest this issuance over the next quarter i think growth looks like it's going to be decent in the u.s. as we get to the back end, the issuance is on the back burner, the economy slows a little bit, inflation kind of comes down a bit. and then you start to see yields -- yields come back in on the long end basically, the economy is slowing type of call. >> do you have a hard landing on the table at this point? that would suggest a pretty, you know, significant version. >> i think it's very hard to see inflation coming down meaningfully and a soft landing. we're in the hard landing camp but i don't think it hits until late this year, early next year. in the meantime, it's really hard to fight this market momentum >> that's a short-term goal, right? >> it's august

>> four months left, right you're saying if you're going to play, you better make it snappy. >> you have to make it snappy, be more nimble, the tide isn't going to lift all the boats in the back half of the year and use market riffs to raise more cash and get a little more defensive. >> does the notion or hope of trough earnings is a fool's errand are earnings going to improve in the back of this slowing economy, in your view? >> i think earnings will be fine for the next quarter or two. i think as folks look to next year, next year has consensus at 2.47, we're at 2.10, expecting a deeper downturn. i think there's downside risk. i don't think it will hit until the turn of the year for stocks in our mind, the economy has to meaningfully slow we think that's just not going to lap over the next quarter you have to be more nimble. >> what about all the fiscal spending that's still out there, though that's been the counter factual for a lot of strategists out there who were saying, hey,

things could get worse and we're expecting the hard landing there's so much spending out there. it's just really blunted any aspect of tightening, of, you know, margins coming in. is that something that you - >> the physical impulse is real. we've seen it so far year to date i think where we're more bearish is on the consumer as we see the excess savings dwindling, as we see student loan repayments starting, as we see things becoming more unaffordable like cars because of interest rates and homes. we're not negative on government spending and that impulse. it can't continue at the pace it has. you kind of got -- once you get that year over year effect, the base effect in, that, too, is not going to be as much of an incremental driver as we look out over the next four quarters. >> where do you see unemployment topping out? can we get to, i don't know, 5, 5.5? >> i think labor is so structurally tight, carl, it's going to be hard to see something over 4.5% this

downturn i think we'll get close to that. i look across the board. that's the problem ultimately. too good of a thing means there's going to be sticky wages. and that's something the fed's going to have to probably continue to fight. >> yeah, we'll look for other ways to ameliorate that, whether that's work week a lot of good takes, thanks, chris. >> thank you. meantime, retailers are targeting cash-strapped rite-aid and with that stock up 75% in the last five days, kate rooney explains the enthusiasm for rite-aid kate >> leslie, good morning. rite-aid is the latest example we've seen shares of struggling companies surging lately as speculative trading takes up tupperware up 500% for the month. yellow, despite shutting down operations, saw a stock pop 400% last week. you have a few common threads and what makes what many refer to as meme stocks.

these are consumer names with underlying problems. they're microcap stocks with small flows to begin with as tends to be a classic target for short sellers. the names have about 20% of the available shares sold short. that's about four times the average stock. therefore, set up here for potential short squeeze. social media can also attract individual traders but there's also hedge funds that tend to monitor forums like reddit dan lobe highlighting this in a letter last week saying fundamental analysis is increasingly taking a backseat to monitoring daily options and reddit message boards. lobe not entirely quitting short selling, but says third point will reduce single name expo exposure the action coincides with total net inflows hitting the highest level since february not all meme and momentum chasing. the bulk of the buying has been in broad-based etfs and treasury

etfs. >> usually that has to do with hedging. certain specific positions on the long side of the portfolio i'm curious specifically with rite-aid because a lot have nostalgic element to it. you see that with tupperware, gamestop, that was a big component. rite-aid doesn't have that nostalgic feel to it what has some of the commentary been on the reason to propel this one higher? >> it is definitely a consumer name that's struggling you've got -- that is absolutely a common thread as you think of game stop, amc and bed bath & beyond, they're everywhere even rite-aid if you walk around new york city, you see it on the corner it's a recognizable consumer brand. but the other common thread is these companies are struggling going through a restructuring, it's having corporate issues that really make it one of these head-scratching moves because of the fundamental issues it's having as well as tupperware that's one of the issues here. you have mentions on social

media and things like reddit that tend to spark these moves and some of the short selling so people tend to be attracted to the potential setup for a short squeeze. that's the common thread here. they're very different companies and have different underlying structures. >> got to be careful sometimes it doesn't always work the way you think it will. kate, thanks interesting, kate rooney on some of the retail trends. energy is in focus we'll check in on oil prices as commodity notches its longest winning streak in more than a year and then we'll take a look at the state of the solar industry with the ceo of sunova after the company's lackluster earnings report. you've got oil and sunov

check out shares of tyson, down 9% at the open. the company did miss estimates on the top and bottom line sales declined year-on-year. they keep the full-year sales guide. stock has recovered a touch. close to the highs of the session so far this morning. and let's turn to oil prices friday marking the sixth straight week of gains for both wti and brent for the first time in more than a year. all of this as recent data shows u.s. crude inventories plunged by 17 million barrels in the final week of july joining us at post 9 with his outlook, citi global ed head of commodities, ed morris ed, thanks for being here. taking a look at your recent note, you said the inventory news from last just reinforced

the view that politics apply more than demand is responsible for the rise to above $80 a barrel why do you think that is >> well, it's very easy to do the math in april a bunch of countries, led by saudi arabia, got together and said, why are prices sticking in the low 70s what if they go down further let's do something about it. so, they made a cut. nothing happened and then the saudis decided they have to make another cut so, you know, when you take basically 2 million barrels a day out of a market, that's the difference between inventories growing and inventories drawing. >> do you see it going higher? >> you think this is a third quarter phenomenon we definitely think there's going to be incremental supply coming into the market in the fourth quarter that's going to more than meet demand we have in our numbers just assuming the saudis are going to bring back that 1 million barrelless a day, we have a million and a half barrels a day of inventory growth.

that will bring prices down again if that works out that way. >> who's bringing the incremental supply is it a compliance issue or somebody else? >> the incremental supply is coming from a bunch of different places non-opec is one of them. we expect u.s. supply, which is in the petroleum already at total liquids at 2.3 million barrels a day. 21.3 million a day that's a record. no country in the world has ever produced that much liquid. we think the crude oil side of it will go up to 13.2 before the end of the year. you see that in the numbers. you see it in the reporting of companies. they have greater efficiency than they had a year ago based on the drilling rates they have come down to and their production is growing. their efficiency is growing. it comes from canada with the end of the wildfires, another slug of guyana you can't look at the western hemisphere without a solid incremental supply five countries in opec people

shouldn't be writing off we used to call them fragile five if you look at their numbers, they're almost all coming up. >> do you think retail gasoline is a threat to the consumer? >> retail gasoline has affected the consumer i think there's a big debate as to whether it's the price -- or the price of gasoline is up around 40 cents on average from where it was on average in december it's still 75 cents lower than it was a year ago. there are other things taking place. yeah, demand is up we think it's up by about 140,000 barrels a day. actually on the weekly numbers in july it went down from june so, that might be priced but it might be a change in habit it might be change in the efficiency of the fleet. there are a lot of things going on besides the price of oil. >> last year they seemed to be able to absorb the higher prices, you know, decently well. you know, you talk to executives in the banking space and they say consumers are still relatively flush with cash

do you think they're able to absorb these levels as well? >> we think they're able to absorb these levels. it's not our judgment that price is doing it. it's very much our judgment that it's a change in driving habits around two big changes. we look at the job market and we forget we're having a record number of retirements. this has been the case since the beginning of the pandemic. taking people out of the labor market who had, on average, three cars per family. they now have two. nobody's going to work they're driving a lot less yeah, employment is up but retirements are up, too. then we look at the efficiency of the fleet, which has gone up significantly. it's gone up significantly because of the supply chain problems as a result of them, auto manufacturers decided to sell the most expensive cars they could sell, which turned out to be pretty much more energy efficient than what they otherwise might be selling you have the ev penetration. if you have been, as i have been a renter of vehicles this

summer, i rented three in a row. the lowest average of the three cars that i rented was 38 miles per gallon the highest was 57. >> oh, my gosh that's crazy really quick before we lose you, people are watching the bounce off lows in iron, in sugar and wonder if that brings liability to inflation data in the coming weeks. yes or no. >> we think there is a liability on the food side we think it's much less so on the fuel side. but definitely there are things to watch as the world as a whole. india decided not to export rice rice is not financially traded but it's bought by a lot of consumers in emerging markets. 40% of the supply has been cut off. that doesn't count with what's happened with the escalation in the black sea and the uncertainty around what grains will be coming out of there, including both wheat and corn.

>> interesting ed, thank you so much. really appreciate your perspective. >> thank you for having me. we'll get more on the energy sector later this hour that stock down 15% on the year. plus, take a look at shares of tesla we were just talking about evs heading lower, down 3.8% the cfo announcing he will be stepping down after four years in that role we'll be right back afr isteth

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just about two hours into trading, let's go post to post with bob pisani for what is driving the market today >> up 21 points on the s&p that's impressive given apple is down notably today there's an awful lot of momentum continuing in all the commodity complex. really on fire marathon -- i talked about this last week. i have rarely seen a stock move like this. i saw 14 out of 15 days. that's amazing all the refiners, phillips 66.

this was 115 in early july this is a refiner move that much oil has been on fire recently. that's been helping a lot. same with exploration of production companies, particularly the smaller ones. pier in is the classic one apa as well. this has been on fire. it was 206 not long ago. 233. this is a lot for these energy stocks to move here. remember, the e and p names, the midsize name, they tend to be proxies for oil. they've been moving in direct relationship to oil. the grain companies, another commodity complex, had been moving bungee is another one. i think this stock has had six or seven down days since the beginning of july. it's been practically straight up here. great earnings last week they tripled their profit. they raised the earnings forecast for the year. strong demand from china and all this chaos in ukraine. grain prices higher is elevating the prices here for bungee stuff is not participating, this whole broadening we saw in july.

consumer staples have been flattish to down there's a whole bunch of consumer staples names doing nothing and haven't been for a long time. hershey is a good example. this stock in may, early june was much, much higher. it was closer to the $270 mark a couple of months ago it's been drifting lower the whole time true with campbell, true with general mills. there's a whole host of these companies that have problems and issues some is related to pricing, some related to volume. the consumer staples have not been. this morning a judge sentenced a former minneapolis police officer to nearly five years in prison for his involvement in george floyd's murder he was convicted of aiding and abetting manslaughter for holding back the crowd and not

intervening as derek chauvin knelt on floyd's neck. he will serve the sentence concurrently with his federal rights conviction. a diplomatic protest over weekend confrontation in disputed south china sea the u.s. ally shared a video yesterday showing a chinese coast guard ship blocking and using a water cannon on a filipino boat. that crucial waterway is a growing source of tension between the u.s. and china. ukraine removed a soviet era sickle on a monument as they defend themselves from russia's ongoing invasion they replaced it with ukraine's trident coat of arms the statue is one of the country's most recognizable landmarks. >> thank you, contessa. after the break, the ceo of

sunova is with us after the company's latest earnings disappointed we're back in a moment good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. (fan #1) there ya go! that's what i'm talkin' about! td ameritrade. (josh allen) is this your plan to watch the game today? (hero fan) uh, yea. i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan from verizon. switch now and they'll give you nfl sunday ticket from youtubetv, on them. (hero fan) this plan is amazing! (josh allen) another amazing plan, backing away from here very slowly. (fan #1) that was josh allen. (fan #2) mmhm. (vo) for a limited time get nfl sunday ticket from youtubetv on us. a $449 value.

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it's been one year since a transformational climate package was introduced in congress, with the creation of a new battery belt here in the u.s but plenty of questions remain our pippen stevens has more. >> leslie, the agreement between

senator schumer and manchin -- more than $150 billion has been invested across more than 40 new factories since the law's implementation the energy transition goes beyond the solar and wind names that tend to capture much of the attention. there are also many under the radar beneficiaries from the climate law. that includes electric and equipment players, which bernstein calls the picks and shovels of the energy transition, which build transmission lines there's also schnieider electric eatton and abb one year in, some incentives have yet to be verified and the clock is ticking there's a a lot of money on the line the government still needs to decide which solar products qualify for the highest manufacturing credits as well as which projects get the 10% credit boost for domestic

content. the biggest unknown is, perhaps, what's meant by green hydrogen, which could have major imreply cases for nacent industries. >> pippen, i know you listen to all these earnings calls, you dig through earnings reports is there anything to glean from the capex levels as it pertains to rar have you seen those move higher now that we're in a year -- obviously there are questions, but digesting the implications >> it's been transformational and we've seen companies across solar, wind, battery, ev companies announcing big factories in the u.s. that would not have been economically possible prior to the i.r.a. there are other projects like hydrogen where they won't make those announcements in the u.s. until they have a full query on the tax credits they can receive. with the incentives in place for a decade and we're already one

year in, we need clarity from the government on those final unclear areas. >> clarity from the government, not always easy to get thank you. pippen stevens on energy let's stick with energy as we head into the end of earnings season questions around demand on the residential side joining us with his outlook today is ceo john berger great to have you back thanks for the time. i wonder if you heard pippen talking about some of the potential policy tailwinds i wonder, do you think that's still in the can we're just getting started where are we on that >> thanks, carl, for having me we're just in the early innings but we're seeing a boom in residential energy it's really transformed at this point in time. part of what's happening here is the residential, particularly behind the meter, has shifted. it's not just about solar panels anymore. it's about batteries, it's about load management, it's about key

pumps and generators and ev chargers coming together to be operated on a software system and supported to float power when storms are outside or when heat is really training the grid system we're really seeing a transformation of an alternative service of power so, essentially a competitive source of power or freedom to have more reliability at a cheaper price for your energy. not just for your home, but for your car as well >> right do you think there would be fewer concerns about residential demand growth if maybe, i don't know, electricity prices were higher than they are >> well, they're continuing to move quite high. we see actually constructive moves with regards to utility rates. utilities are a socialistic system and communistic even with some of the entities out there there's no capitalism, very little of it, inside the u.s. power industry so, what we're seeing outside of

the country, for instance, i was recently talking to investors and shareholders in australia. they're seeing a lot more open market here where you can combine some grid power, some of the power from the solar, the batteries, the evs, and that comes together in a single competitive source that's able to do things like get you free power, believe it or not, and then some payment on top, which is the case in some cases in australia because the energy, the wholesale side is so expensive. we're seeing that here in this country. we're behind on the regulatory side we need to open things up and allow freedom for consumers to choose the power provider. so, we actually see the utility rates continuing to climb here for the next several years, until regulatory change is implemented. >> interesting john, you recently reported earnings largely better than expected, higher than expected growth outlook the stocks did decline and

analysts are acontributing that to the need of $70 million worth of equity. what are your plans on that front to go to the market, potentially, raise additional capital and what exactly is the size you're looking at right now? >> well, we are very transparent. maybe too much so, running a public company very difficult to do we've tried to be as transparent and open and open as possible. when we laid out our capital plan, you can see our growth is not just strong. it's booming a lot of investors are looking at that and saying, i think i like this but where is the cash flow glg going to come from, where are the earnings we clearly laid out in the back half of this year we're going to see stronger adjusted ebitda and a lot more cash flow we're seeing an operating leverage, basically our expenses going down per customer starting next year. so, we're seeing very strong financial performance. we talked about that we laid out very clearly the

capital requirements there we're well on our way to getting that capital and securing it so, this was really just looking at a long-term plan and saying, look, the business is quite strong look, we're doing something quite different. we're taking a lot of these homes that are customers and businesses and connecting them together like the internet that's able to get more energy -- for instance, in texas yesterday where there was really high power prices, we're able to take some customers' energy that they're not using and sell back into the community that gets more value that's what i was talking about with australia that's the way the australia works, japanese, european -- most of the european markets work it's more about how do we facilitate and get more earnings for the company and more value for our customers. it's quite an exciting time. the power business and energy business globally is changing. >> it's fascinating to watch consumer habits change and they

sometimes change faster with various shocks which arguably we didn't see as much this summer we'll monitor with your help thanks for the time today. thank you very much. >> thanks for having me. >> the industrials etf continues to outperform the s&p but can't break above a key level. we'll have the details next. let's take a look at shares of biontech. the company did report a miss on revenue. shares down almost 10% we're back in a moment

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got a touch of m&a in the food business. campbell's soup buying sovos brand. those stocks moving in opposite directions kind of fed into our m&a discussion earlier this morning. >> deals are happening >> a few >> merger monday one in the food space, which never hurts on a monday. move over, tech sector, it's the industrials that are breaking out in this market. here to break it all down physically here is seema mody. >> this is not just about beating estimates so far this quarter. industrial companies, their profits are tracking about 12% ahead of consensus when we read the tea leaves of earnings call, you'll see it comes down to supply chain costs

moderating as larry kulp told me inventory is being drown down faster than expected caterpillar are seeing their exposure to china come down, which investors like to see. caterpillar, by the way, among the standouts. now up about 15% in the past month as our carrier, global and tectron, which has outperformed big tech and valuation, which has come to debate the xli etf is trading at 22 times current earnings which above its five-year average. analysts remain bullish. they're pointing to those secular tailwinds, like the c.h.i.p.s. act, i.r.a., both mentioned by manufacturer which expects $600 billion of spending due to chip manufacturing, digit tieization, onshoring over the next several years, and eaton which said the value announced mega projects has increased by $116 billion, so about 20% from

march to june. they're about three times their historical backlog coverage. so, when you speak to people on the street, they still see a lot of opportunities for these companies to outperform because of those tailwinds that are still coming to fruition. >> they're definitely the beneficiaries of a lot of the fiscal spending we've seen out there. from an investor standpoint, how important is capital return in this industry, dividends, buybacks, things that have been a little hit or miss elsewhere is that important for industrials? >> absolutely. especially when you look on a stock-to-stock basis a company like 3m, there were questions given the liability it's facing when it comes to military earplugs and toxic chemicals, whether the company would have to cut its dividend given the stock's recent outperformance, some concerns have come down as a sector, you see capital allocation increase. that's another bullish point for investors for now. >> some of the all-time highs, you mentioned, all time highs.

>> another big name to watch will be john deere that's the big industrial reporting next week. this is the pulse of the agricultural economy whatever deere says has an impact on the agriculture. one to keep an eye on. >> thanks, seema. the a.i. trend continues to dominate the tech sector this year how might it disrupt the health care space we'll talk to d.c. investor eric rapoe on why he sees major opportunity ahead.

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a.i. is not only disrupting the tech sector in the market but now the health industry with old-fashioned medical records technology now being phased out, giving doctors less time with paperwork and more time with patients bertha coombs has that story for today's "techcheck." >> you don't look like you feel good today. >> reporter: dr. foy starts patient visits by pulling out her phone. >> it listens in on our visit so that i can pay more attention to you. are you comfortable with me using it >> reporter: it has freed her from typing when she's seeing patients the a.i. program writes her patient's summaries for her, which has freed her from - >> should be the time where you're getting ready to wind down and go to bed we're usually still charting and noting and doing things that are going to enhance the life of the patient but not necessarily our own quality of life.

>> reporter: at baptist health in jacksonville, harnessing generative a.i. programs to help doctors and nurses fight burnout is a top new priority. >> an economy of scale, economies that health care will be able to get into leveraging a.i. >> like what >> you eliminate all the redid you understand dredundancy and overhead. >> reporter: it could help hospitals cut total costs by 5% to 11% in the next five years according to economic of national bureau research study for health insurers, 7% to 10%, although the up front investment isn't cheap. >> it cost me x but i made my patients a whole lot happier and physicians more productive there's an answer by tself. >> reporter: about that productivity, dr. foy says it shouldn't mean more work pajama time is now reserved for time with her family. >> this is about the doctor having a quality of life that they deserve because we're

people, too. >> the newest version actually does it immediately. you're done talking, you press end record and there is the whole record it's fairly complete what's really interesting is that microsoft is working with epic, which is the largest electronic health record company. they're also working on seeing how they can use it to do the replies. that's another thing a friend of mine is a doctor she says, it's not just the medical record i have to email you back and people are asking me questions so, they're doing that one doctor told me in san diego, she said, we put a disclaimer that it was generated by a.i. but my patients would know because it's written much better than i would do. >> i was thinking about the jobs number on friday where health care added like 63k. it doesn't mean this is going to take jobs away >> i don't think it is. >> demand for labor is still incredible. >> the other thing, too, you also need people who have the tech skills to be able to maintain these systems these are huge machine learning

programs you also have to make sure that they are secure, so you have to be on the lookout for hackers. it's kind of like when we went from paper records to electronic records. we got rid of the file clerks you used back in the day they used to go around with big files. but the jobs have grown exponentially since. >> how comfortable do patients feel about this? this is really sensitive information that they could be asking for and sharing is there any hesitation on the part of patients >> you know, her patients, dr. foy's patients seem to like it i did a demo with microsoft. i actually tweeted out the link earlier where you sat down and it's refreshing to sit and talk to a doctor and not have them buried in the screen for half of your visit so, and the other thing that's great, too, it really takes you what you say and it creates a summary, which doctors often don't have time to do. so, it's -- it was actually

really kind of cool, i thought >> yeah. well, more information in health care seems like it could be a good thing, although potentially some drawbacks >> right they have to take the security and there are folks like the dean of stanford medical school, he's got a group to try to come with rules and safeguards because he worries this could be used in terms of preventing equity if the insurers come up with new rules and deny more claims that will make it hard for people to get access, and that's something he's worried about >> thank you for bringing this to us, clearly the next phase in health care we should know about. fthe co founder skwroeupbgz us now really fascinating, the next phase in the health care

technology space what would you say this industry is as it pertains to a.i.? is this the biggest use case we could see? >> it's going to be -- good morning. it's going to be a huge case, and i would say we're in the second inning, and they moment i would say we are in what i would describe as augmented intelligence, and in the segment we were reviewing, it was about collecting data. it doesn't necessarily have to be in person, but it could be at a video conference by the time that the doctor sees the patient, the doctor has a lot of information about what is going on and could be much -- could be prescriptive much faster >> what about the most cutting edge, you know, use case for a.i. and health care are we going to be seeing a.i. engaging in diagnosis, and

perform surgeries via some kind of robot what do you see as the most cutting edge future in a.i. right now? >> all of the applications you just mentioned already can exist in some form as an example, one of our companies has brought a.i. to a critical grade, and it's being used by doctors in the clinical setting such as doctors at the mayo clinic. what happens here is the patient goes online and answers a number of questions, typically about 25 questions in five minutes, and then had the option to access to doctors, and you can see the doctor online, on video, and the doctor will know how to direct his thoughts about a diagnosis

it's faster. it gives access to primary care in ways that has not been accomplished in this day it's a lot cheaper >> it's amazing how many layers there are to the story there's the office care and procedures and drug development. how do you think that stacks up against opportunities in education or media or financial services, for example? >> well, kind of all of the above. health care is obviously complicated and one of the larger segments of our economy, and we are talking about augmenting -- we are not talking about replacing teachers or doctors, but we need to augment their audio seen krau see. a.i. will be very prer pervasive

and will be everywhere >> is there still a ways to go in terms of making sure there are no privacy implications, for example, or misdiagnosis, you know, or things that could lead patients down a rabbit hole of diagnosis they don't need to go down >> we have to remember, this is the very beginning of a.i. it's premature, and it could give wrong information and this is why it should be assisting a doctor or teacher and not replacing those people there's lot to be done, and the industry is working on, for instance, maybe giving you a watermark so the content is generated by a.i., and so you

know that it could be false. right now you don't. we need lot of the safeguards, but at the same time we need to make sure that we are not stifling the development of the technology, which is really, really revolutionary >> clearly a delicate balance there. anybody that has been down the rabbit hole of md could emphasize with the potential pitfalls here. thank you for being here >> thank you the dow is gaining about 1%. still to come, is the work from wl scs officially over weildiusthat in a moment

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♪ unnecessary action hero ♪ was that necessary? nope. neither are paycheck problems. with paycom, employees do their own payroll. no problems, no surprises. [narrator] schedule a demo at paycom.com and make the unnecessary, unnecessary. wall street is buzzing about zoom today and the end of an era asperhaps remote work biggest beneficial begins to call workers back in the office one of the few companies that embraced an exclusively work from home policy, now zoom will

require employees to come in at least two days a week. and after a study by mit and ucla found that employees that work exclusively from home saw a drop in productivity, about 18%. zoom is calling people back into the office and meantime, "the washington post" today has a piece up about federal agencies this fall will start to pressure bosses to say get your people back in, and that will help with the demand side of the energy equation changes >> does it change the picture for the labor market as well it's still very tight. in a type of environment where it's tough to hire, you have to offer concessions if you want to

attract the best talent, so how does that equation change? >> well, given that it's zoom, it's poetic. meanwhile, the next few sessions as we get to the inflation data and some of the high-profile earnings -- >> of course, the commodity bounce as well let's get to frank holland in for the judge i am in for scott wapner the question is today's bounce for real or just one giant head fake our investment committee is standing by. joe terranova, shannon, jason snipe and jim be