ounces of gold equivalents. permits to mine zero debt with only 10.73 million shares outstanding and a portfolio of world class american strategic metals assets. u.s. gold corp, join the golden age. good day, everyone. welcome to "power lunch." alongside kelly, i'm tyler mathson. glad you could join us. as you can see, the markets are a little bit higher, about .08%. the s&p 500 and nasdaq, a handful of points from record highs. but today, it is all about apple. and ai. the company's worldwide developers conference under way. it is seen as apple's big chance to show off the plan force ai, which we haven't heard yet.

>> we can't wait to. and you can't talk about ai without addressing the demand of chips from nvidia and others. look at the share price, now trading on a split-adjusted basis, just 122, but slightly higher and that is helping the broader markets. the chief rival amd, one of the worst performers in the s&p, after morgan stanley downgraded the stock, saying investors are too bullish on the outlook for ai chips. amd shares are down 4%. let's transition back to apple as it continues its worldwide developer conference address where we're live on the scene in cupertino, steve is there, and joined by tim higgins, "the wall street journal" columnist and a cnbc contributor. gentlemen, let's start with you. what are the stakes here, tim, for apple? >> big, huge. some people think this is the most important since the iphone was first revealed, trying to

sell the idea that apple is going to be part of the new wave of technology going forward that is going to be part of ai's future, but it is a little yet unclear what that means for apple. and i think that's why everybody is tuning in, trying to see, what's that taste going to be? >> steve, does apple need -- i mean it's one thing to say, as i believe apple has, that we're all about ai, it's part of our dna and every product that we buy for a long time and i buy, that but do we need some sort of separate product or separate identify ner this area to get them sort of, the kind of momentum that i suspect they seek? >> yes, so there's a different kind of answer to that question, tyler, because like you said, if you had asked them over the years ago, are you using artificial intelligence, the folks at apple would say absolutely, we are using artificial intelligence, you just don't maybe know you're using artificial intelligence, and that's true for so many

other companies as well. a lot of stuff is happening behind the scenes. what we've seen at apple though, over the last 18 months or so, is that kind of conversation around artificial intelligence evolve. in fact, they wouldn't even call it artificial intelligence until very, very recently. they preferred the term machine learning. now, they're saying this is going to be their breakout moment in artificial intelligence. tim cook, for the record, did tease that those announcements are coming today. i know we're an hour into this thing and we haven't heard about it yet. and maybe when i'm done talking, they will. and right now talking about the platforms and they're talking about iphone, and wrapping up the mac portion, and i anticipate artificial intelligence to come next. and then yes, it comes down to, what are these user facing features, tyler, that people are going to want to use that maybe playing catch-up to what samsung and google have done on their smartphones, and it's what we've seen at open ai, by the way a partnership with open ai expected to be announce and we saw sam altman here on campus in

cupertino. any minute now, we will get the answer to your question from apple itself. but i agree. they do need to show that they have this user facing generative ai product to match what their competitors are doing. >> tim, that's kind of the question i have. is it as simple as, quote, fixing siri, which a lot of consumers have problems or issues or find it difficult to use and sort of unhelpful in some cases, or is it something else? i mean in other words, i guess the question is, what does apple have to do here, where i, a consumer, are going to say, boy, this changed my life. this changed my experience of their product. >> well, i think you're really getting at the core issue here, and a lot of ways today is a tale of two stories. >> there's a story for wall street and investors to get them excited about apple's potential. but also more importantly, it is to show how their products can appeal to consumers. and it's still not clear exactly hout that there iphone buyers

are excited or even kind of care about this new technology. it hasn't really been put in kind of the physical yet. and that is kind of where the potential is, and also the potential for kind of shrugging, right? >> yes. >> tim, do you think it's strange that they're kind of burying the lede here, to this extent, or what? >> classic apple. they save the good stuff for the last part of it. though there has been some teases of ai in the products, as steve was mentioning, they don't talk about it yet. and just think about the potential, and the updates they're making to the headphones to block out noise, that's all ai in the background, and some of the challenge of the culture around apple for years, they want to focus on what the product does for the consumer, and not the inner workings behind the scenes. but right now, we're in an era where investors want to be excited by what's under the hood. >> so, steve, sum it all up for us here. i asked tim what the stakes are. do you agree that they couldn't

be higher for apple this time around? >> they are for investors, tyler, because look at how much the stock has lagged behind its peers. we've seen meta up enormously this year. nvidia, i don't have to tell you what it's been doing. microsoft overtabbing apple as the most valuable company in the world, earlier this year and so on down the line. all of those companies, we know what their strategy is, we know how they plan to make money, if they're not making money already, and apple just doesn't have that direct monetization story around artificial intelligence, just the whiz-bang product stuff that we've seen from, in the last few weeks, where microsoft and open ai, and google, it is apple's turn now to round out this, what we're calling this developer's conference season, what i've been calling the summer of artificial intelligence. apple is going to put a scap stone and a button on this whole conversation and give us their take. but at the end of the day, tyler, the most important thing you need to watch for is not the features, not how cool it is, not if they're catching up to the competition, it's whether or

not it's good enough to convince people to upgrade their phones and whether or not they kind of boxed out some of the older iphone models on some of these futures in order to get that sort of fomo effect, to get people upgrading when the next model comes out this fall, tiler. >> you know, tim, we're told that it just started some of the ai stuff and we'll get some reports from inside the presentation momentarily, maybe within time for you to react to it. but i guess one question i would have is, people have been critical of apple's stock, because it isn't nvidia's stock. but isn't apple stock trading quite near to an all-time high? >> you know, steefbl kind of hits this point, microsoft is seeing much more dramatic gains this year than apple has. yes, apple is near that record. but they haven't seen the kind of growth that those people who, those companies that really embrace the ai technology, at least publicly, have received.

so, really, the concern here is that if they don't get on that bandwagon, what will happen to the stock after that fact, right? we've seen the run-up ahead of this. if it doesn't impress wall street, that could be a problem. >> apple shares are heading toward session highs as tim cook himself haz just spoken about ai, let's take a quick listen. >> the outcome reflects the principles at the fore of our products. it has to be powerful enough to help with the things that matter most to you. it has to be intuitive and easy to use. it has to be deeply integrated into your product experiences. most importantly, it has to understand you, and be grounded in your personal context, like your routine, your relationships, your communications and more. and, of course, it has to be built with privacy from the ground up. together, all of this goes beyond artificial intelligence.

it's personal intelligence. and it's the next big step for apple. ♪ >> that is interesting. >> there it is, apple intelligence. >> ai. >> at long last. tim cook himself revealing kind of this new moniker, steve, we're going to hear so much about, apple intelligence, what's the significance? >> this is very much apple branding at work here,just the way tim cook just talked about it, again, privacy, and so forth, being taken into account, something we don't always hear from the leaders and artificial intelligence. microsoft for example just went through privacy concern over some of the products that have been announced a couple of weeks

ago, but this is apple saying we got it right, we will make it private, and also, not calling it ai, they're calling it apple intelligence, just like they call it the apple watch or the apple tv, putting their own branding spin on. >> it the real question is what we are going to see in the next couple of minutes, over the next hour or so, kelly, is whether or not this is above and beyond what we've seen from the competitors, what we've seen from microsoft, what we already saw from google in the previous week. so this is setting the stage right now for that, but we do know the marketing spin, private, on device, apple intelligence. >> any final thoughts to sum it up? >> absolutely, talking about the user experience, not necessarily hanging on the idea of ai, ai, right? this is about the product and what the user experience will be like. classic apple. >> thanks, guys. steve kovack, tim higgins, appreciate your time. i'm sure we will have more from apple soon. >> the shares are down about 1%. coming up, massive shift to

the right in this weekend's u votes, we will look at international stocks and lay it out. and as we head to break, huntington bank, lower after the cfo shared a light earnings warning at a morgan stanley conference. on the positive side, southwest, reports that elliot management has built a stake in the company. we'll be right back on "power lunch." ♪ ♪ ♪ ♪

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welcome back. all three major averages are inching higher as wall street awaiting wednesday's fed decision. our next guest is not expecting any rate changes this year and continues to hold major positions in ai, security and select medicals. let's bring in peter anderson, chief investment officer with andersen capital management. steve, did ai save the stock market? >> it certainly has propelled us over the past year to date, and

i still think there is a lot of fuel left in the tank. we just have to be very careful, kelly about, when this party might end. you know, i'm a great supporter of ai but i would say i'm a rational supporter, so we're all in this theater, right, watching a great movie. we know at some point, somebody is going to yell fire, and the point is, how do we determine when enough is enough, we're at the market top? that's the big question. >> that's very hard to do. what do you think your answer is? because i see, you're saying, look, looking at your ai positions now, it is time to define the sell triggers. what are they? >> it is overdue, actually. and so, you know, normally, i would pick sell triggers are that are financially based, based on the individual stocks, but i'm not doing it this time. i'll using two very simple sell triggers. the first is what you might call the better mousetrap theory. so in other words, we're all down this road, the entire internet has been upload and we're waiting to see if this is

going to work. what if somebody comes along with a totally different model of how the brain works, and uses off-the-shelf components? that would blow all of the traditional ai that we're following now totally out of the water. do i think that's possible? yes, i do. but it's going to take some time. and then the second sell trigger, i would say, is when you become aware of say this great disillusionment. for instance, what if a very much strong influencer comes on to the media and says you know, everybody, i have been thinking about this buildout, and it isn't all what it's cracked up to be. there is some cracks in the future of ai, and maybe it's time to call it quits. that could also happen. and that's very serious if that does. >> peter, you have a very concentrated portfolio, as i recall. and i remember specifically, you have added a new name in the portfolio, which is something you don't do all that often. what is it and why?

>> so,well, the good news is, tyler, one of the other stocks that has been acquired, shock wave medical, so that created a vacancy, and i do have a deep bench of candidates, and so the newest name i've added is a medical instrumentation company called insuit, the ticker is podd, and it is a reremarkable technology that automatically delivers insulin to diabetic patients. you put it on your arm, it stays there for 72 hours. it's waterproof. and you don't have to do finger sticks to test your blood level or chemistry and you don't have to inject any insulin on your own, it automatically injects it and at a much more constant level which doctors love. >> how is it different than existing? aren't there existing insulin patches or technologies? >> it works with them. the patch that you're probably referring to, that we see, is a patch that monitors your blood

chemistry, that does not deliver the insulin. >> very interesting. how many stocks are in your portfolio, and you say you have a deep bench, do you have a fixed number that you stick with, and what is that number, and would you ever -- do you go above that, and let's say i keep 22 stocks, why wouldn't you go t to 25 if you have three other great ones? >> the way i've done this, i say it tongue in cheek, tyler, but i try to find stocks that simply are going to go up, and a lot of people complicate their strategy and they will go on telling you about certain quantitative metrics, but the only thing i also do is i come from a buy-in world, so i look at the fixed income perspective of things and try to identify stocks that have done very well from a bond holders's perspective. nand terms of concentrated, this is the most concentrated i've been, 12 stocks. on occasion i've been up to 20. but you don't have to -- it's not a hammer looking for a nail

all the time. i'm just trying to find stocks that i really think are immune to today's worries. i mean today's worries, interest rates, when ai is going to crash, all of those things come into play, and so it kind of leads me to a portfolio, currently, of 12 stocks, but i do not have a pre-determined number. the number comes out as a result of finding the stocks i like. >> okay. peter, thanks very much. peter andersen, we appreciate it, good as always to see you. we want to check stocks in europe as elections over the weekend may signal a change, right-leaning parties winning seats in the european parliament, at the expense of the left-leaning, or green parties. we have more on the market reaction, and it has been especially acute, i think, in france. >> that's exactly right, tyler. a big showing for europe's far right, winning more seats than expected in france, calling for ma crone for a snap

parliamentary election on june 30th. we saw the cac with the lowest levels since february, underperforming the other european indices and major banks, bnp and softgen, leading the decline, and while we saw the 10-year in france hit the highest level of the year. far right nationalists did pick up a bigger showing in germany as well. greece and italy, with the euro, the currency down against the dollar at the lowest level in one month. investors at deutsche bank, at the outcome of the legislative elections in france, might lead to a government to less likely easily comply with fiscal rules either intentionally or the result of a weak political alliance. other european strategists write it could push european lead essers for tighter immigration policies, and a big election for france at the end of the month ant the u.k. election on july 4th, the confirmation of

europe's commission president on july 18th. a big summer ahead. >> thank you very much. new tech like ai, relying pretty heavily on old energy and when it becomes clear the renewables alone can't meet the new high power demand of ai. next on "power lunch."

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the next level network. i sold a pillow! welcome back, everybody. roche, one of the world's largest biotech companies is warning dangerous counterfeits of the diabetes medical devices ended up for sale on amazon, to be bought by patients across the united states. the company is suing manufacturers and distributors in india, where it discovered the counter fit products were being shipped from. kate has the details. >> we obtained a copy of the lawsuit which was unsealed on

friday and originally filed in the u.s. district court in brooklyn. roche says its accu-check medical devices were being sent from india to amazon warehouses and then being sold on the e-commerce platform. the devices include blood glucose test strips and you can see what a real roche accu-chek looks like and then a fake one. you can see what it looks like, the name and the product name is misspelled with a made-up serial number on the box. the complaint doesn't say how long these products have been sold on amazon but a judge last month did order those sales to be halted and stopped in the u.s. roche declined to comment. as well as the defendants. which are four indian companies, and their four executives. and an amazon spokesperson telling cnbc it has, quote, zero tolerance for counterfeit products and has swift measures to block them and has measures to prevent counterfeit products

from being listed. back to you. >> i hope everyone got those details, and make sure they're not getting the wrong products, and a reminder, to watch the risks there. gas tapping $3 for the first time since january with sizzling summer temperature, 96 next week, and looking forward, the weather is not the only thing driving natural gas. >> we're talking of course about data centers and energy is the backbone here, with the forecast of the power consumption from data centers in the u.s. alone will more than double by 2030. experts say all of the new demand cannot be met by renewables alone. at least for the time being. meaning potential upside for energy or utility stocks and as fargo put, it gas to the rescue. and now, the location is important here. as companies closest to demand growth centers could have the most upside. like intera, coterra, eqt, they have operations in the northwest and williams, and enbridge and kinder morgan on type line. and the southeast, where there

are buildouts are concentrated and then the utility responsible for supplying power to the data centers. dominion operates in northern virginia. duke in the carolinas. and southern companies, in georgia, with jpmorgan saying low rates and speed to market should attract data centers to these areas. and this of course comes amid electrification and reshoring and domestic manufacturing. bottom line, a lot of stress on the grid and maybe something to look at. >> we have spent lots of our youth in virginia and if you drive through northern virginia today all you see is data centers in loudon county. >> data center alley. >> thank you. let's get to a news update with contessa brewer. the supreme court agreed to hear meta's bid to dismiss a class action lawsuit brought by investors. it centers on claims that facebook's parent company failed to disclose how personal user information would be misused by cambridge analytica, the

consulting firm that supported donald trump's successful 2016 campaign. shares of meta dropped significantly when the scandal became public in 2018. the high court will hear arguments this fall. the vice president of malawi is missing, along with nine others who took off on a military plane today. he was heading to the funeral of a former cabinet minister. the president's office says that plane was supposed to land 45 minutes after takeoff, but it fell off the radar, and hasn't been seen since. and a stranded kite surfer was rescued yesterday, after spelling out help, with rocks on a remote beach in california. a private helicopter spotted his plea for assistance, and alerted first responders. it is not clear how long the man was down there or how he ended up on the beach but local officials say he did not require any medical attention. good thinking right now and a sharp eagle eye from the pilot. >> thanks very much. still to come, jpmorgan upgrading walmart. highlighting its initiatives and

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welcome back. walmart has been making some big bets to maintain its competitive edge amid a shifting consumer, namely in the grocery and food space. we have more to discuss and you have samples. >> yes, it was definitely one of the most interesting and memorable parts of the trip. we went to the culinary innovation center where walmart develops a lot of the different food items and they have come up with a brand new film called better good, with chef-driven items and 70% of those items are $5 or less. so some of the items we tried are preemie jalapeno corn chowder, a raspberry cardiamom, a sour dough cracker and a little proscuitto on it and showing us how to get creative with the cheaper type items and have more interesting flavors for less. >> did you like them? >> you know, i was pleasantly surprised. and of course, the beautiful presentation, and so it was interesting to see how they kind of mixed and matched different items, and it comes at a time

when one of the cfos is talking about low people are looking for cheaper alternatives to fast food and one of the things they were trying to show is how they're trying to make it convenient and easy. >> i'm thinking easy. that's what i'm thinking. look at that. >> this is the typical fast food customer. why not just say we've got $4, you know, fries and a hamburger or something. it's an interesting twist. >> well, this was a more elevated type thing that they showed. of course, the capri salad is something you might see on a menu of a fancier restaurant but they were trying to show off the balsamic vinegar on tom and the truffle salt on top. and the truffle salt is $7, a little under $7 and the balsamic vinegar is a little under $3 and most of the items we tryed are not yet available in stores but are rolling out in the coming weeks and they expect to have 300 items by october. >> this is a private label of theirs. >> exactly. >> pushing. >> and while it is a fun thing to show off, too, the analysts and the media who attended, like

me, it is mission critical for their business, because you will remember, about 60% of walmart in the u.s.'s revenue comes from groceries. so as they see players like aldi and others trying to grow, they have to get more creative. even some of the flavors reminded of what you see from trader joe's. so creative types of spreads and things like that. >> i was going to say, it feels like a little bit of a foray of the turf that has been owned by trader joe's, and a big emphasis on store brand, as opposed to national brand. >> absolutely. and the advantage of private brands here of course, you offer flavors you can't find somewhere else. so the more creative you are, the more competitive you can be, and kind of making that person come for their favorite child snack, or their favorite meal solution, and one of the interesting things they showed off ask we tried appetizers, game day snacks and awful different frozen appetizers, cook at the same temperature. with the idea being, if you're busy and preparing for a party,

or a child's birthday, you want it to be as easy as possible, so they developed that as part of it. >> and 375, or whatever. >> exactly. so that can make such a difference when you're short on time. >> oh, yes. we have a party coming up friday afternoon. >> oh, you do? aisle he be there. >> great. bring a few apps. >> sure. >> we'll take the walmart offerings. stick around for the next segment. walmart is trading higher after an upgrade of overweight to neutral from jpmorgan, the firm saying the retail giant has a strong balance of defense and offense on both the top and bottom lines in a soft consumer backdrop. the analyst behind the call, chris, welcome, good to have you with us. >> thank you for having me. >> you think this stock has a great pairing of offense and defense. explain that reasoning, and how it manifests itself in what it's doing. >> well, it wins championships. at the end of the day, we're seeing signs that the consumer

is getting weaker. a lot of my companies have discretionary goods that should be rebounding in the back half of the year, and that's the way most of the street is modeled, if you think about a target, home depot, and a best buy, you know, we're looking for a flame that has self help in terms of taking share on the top line, and on the margin side, so that you can see continued upward earnings revisions. >> you think that this is going to -- this stock may go on a multi-year double digit earnings per share growth rate, and so you see profitability improving, as well as sales, i guess. >> yes, that's right. so if you think about walmart's mix, it is about 60% grocery and about 30% general merchandise. walmart is gaining share on both sides. on the groceryside, it's innovation, like that former bit that you just did, designed to continue to grow share with that middle income-plus consumer.

they're growing through great price investment, and assortment upgrades but the vendors are coming in behind it, because they need to drive units and walmart is the biggest player for them. so we expect continued gains on the consumable side of the business but that 30%, that's general merchandise, that's where they're competing with amazon, and what was on displaylet week was their improving assortment and speeding up the delivery, and they're starting to grow that business 20, 30%, and it is just becoming more significant. >> one of the interesting things, to build on what chris is saying, is they're able to bulk of their assortment on the general merchandise side without taking on the same amount of risk. they're relying more on sellers, the third party, they are get into more edgy, more fashion-forward, or trendy types of offerings, but they don't own the inventory, and that makes a difference on the profitability side as well. they're also getting into businesses that pair well with the marketplace. they're selling ads, as they get more into the business that

amazon is in, not only do they add that seller, they're then telling the seller, you know, you can get to the top of this list, when someone searches for an item like the one you're selling. >> chris, you mentioned earlier that you see some slowing in the consumer area. what are you seeing precisely? >> yes, you know, a lot of the general merchandise businesses, we're all sort of stuck at home in early covid, we pull forward a lot of demand. the past two years, that share of the wallet was going back in the other direction. earlier this year, we start to see green shoots with early covid winning categories, we're starting to improve, it is a little bit of a stop/start and slowing wage growth and persistent inflation not easing in the consumer wallet, that general merchandise isn't really coming back as quickly as we would hope. and as we look, and stare at the second quarter coming in here foremost retailers, i think you're going to see some risk that retailers might have to cut

the back half of the year. meanwhile, a target might be a good example there where they're getting squeezed with walmart and amazon gains share in consumables and general merchandise and that consumer is not looking to this sort of expansive shop. they want the best value and the best price, and they're going to go to walmart and amazon. >> melissa, final thought? >> yes, i think i would echo what chris said, is that, you know, as amazon and walmart continue, a lot of analysts commented they're seeing a lot of oxygen sucked out of the room and that is leaving little room for players like target and the specialty players all around. >> chris, thank you very much. >> melissa, great to see you. welcome back from bentonville. coming up, a cool summer ahead for home buying. we'll get the latest read on housing sentiment. "power lunch" is back in a moment.

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apple is continuing its ai reveal, announcing a major partnership, and steve kovack has the details. steve? >> hey there, tyler, that chat gpt/open ai partnership is official now. apple just announcing that chatgpt from open ai will be integrated into iphone, ipad and mac software. this is more of an optional feature, though. so the example they gave is if you ask siri a question and maybe siri doesn't totally understand or can't accomplish what you want it to accomplish, it may pop up and suggest hey, do you want to ask chat gpt and they you can go ahead and do that. craig, the apple head of software, called it the best ai model that is out there right now, and the market leader, a few people would probably argue with that, other than the folks at google, et cetera. and by the way, speaking of google, craig also said that they're open to other partnerships as well. so while the initial one is going to be open ai and chatgpt, on top of that, we can expect to see other models, of course,

with approval of apple and whatever deal they cut, that will be part of it as well. the event is now just wrapping up, tyler but a few other things that are going on, that they announced on the ai front, it is largely catching up to what we've seen from competitors, microsoft, and the like, for example, if you're familiar with microsoft's co-pilot product, a lot of what apple announced is very similar to that. you can ask it questions, show me all of the emails that tyler has sent me in the last month or so, you know, and it can send you that kind of thing. nothing groundbreaking there. some image-generating things. the key difference here is the privacy angle they're talking about, tyler, and we don't hear that so much from competitors on the ai front, but of course, this is apple, they always make that a feature, and they're trying to put as much of the ai on the device as they can, meaning servers won't see it, and when they do have to send it to the server for what they call more intelligence, that is done in what they're claiming is a more private way than competitors can already do. so that seems to be the key

differentiator here. i'm not seeing too much new that we haven't seen from competitors. >> so if i'm understanding correctly, and clarify if i'm not, siri would still be the default option for my queries, if i want to know, hey, siri, what is the weather today in indianapolis -- >> correct. >> but is there a way that i can make chat gpt my default search? >> they didn't mention about making it the default. what they showed was, two things, first, they showed it can suggest, saying hey, tyler, we can't answer that question for you, or you might want to check chatgpt instead. that's one thing it can do. or, chatgpt is already built in there. so it can help you do things like create a note and things like that. if you have a chatgpt account, they say you can log in and use the features. but if you don't have a chatgpt account or you don't want to have a chatgpt account, there will be some slimmer version of it for free for you to use as well. >> steve, thanks very much.

no further questions. still ahead, we will trade some key movers of the day in a fresh "three stock lunch" and as we head to break, cnbc celebrates pride month throughout june. here is deutsche bank. >> as i enter the banking industry, i was struggling with my coming out, because i did not see visible senior leadership at the top of the house. and i realized that people can advance, and despite their sexual orientation, and to me, i also came to the conclusion that for me, it is important to speak out and to be visible now, as a leader, to inspire the same in the people who are just starting in the workplace. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills

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let's get on to today's three-stock lunch, shall we? here is the chief investment officer with main street research. first, abobe stock getting a downgrade from hold to buy, the company due to report earnings this week. shares are down more than a percent today. james, your trade on this one? >> my trade here is a buy,

tyler. this is a stock that investors just have lost their patience with. and i think that they need to re-gain it. thursday, they report, they beat revenue and earnings, the last four quarters in a row, and they are just the second tier of the semiconductor revenue, it will start go numbers on thursday, creative cloud numbers. we think they're going to beat again. and the stock's down 25%, 26% for the year. 25 times earnings, great for a portfolio. >> let's move to shares have southwest, soaring on news that elliott is taking a $2 billion stake, trying to oust the ceo and chair. the shares are up 8% on the news. would you be a buyer here? >> yeah, kelly, here, you know, we would have said this is a stock you want to sell on friday unless superman comes to the rescue. and that's who paul singer is at elliott management. i mean, they're going to come in. they've taken an 8% stake for $2

billion. really to try to change the management, which has been a problem. you know, the boeing supply issues have been a problem. the stock's down 50% in the last three years. so, we buy this stock for the trade. i'm not so sure i would own this for long term, but elliott will come in. they've got a great track record. i think he's going to make a difference and the stock needs him. >> finally, let's have some doughnuts. krispy kreme getting an upgrade from truist to a buy in hopes of a deal with mcdonald's. shares are higher by more than 6%. is this a stock you would consume? >> it was up 9% at one point this morning. i think this is a stock that you definitely sell into strength. and there's a few reasons. i mean, i see the upgrade based on the partnership with mcdonald's. they can go global. let's face it, consumers are trending towards a much more healthy diet. i think we're -- the new generations are forcing us that way. we have glp-1, ozempic type

drug, which we're a buy. but we're a sell here. i also think, our view is the novelty has worn off on the krispy kreme brand. that's a problem for these types of companies. we're a seller. >> james, thank you very much. no to the doughnuts. all right. remember, you can always hear us on our podcast. listen and follow "power lunch" wherever you go, wherever you listen. we'll be right back after this. ♪♪ ♪♪ ♪♪ chewy, a citi client, uses citi's financial expertise to help drive its growth and keep its supply chain moving, so more pet parents can get everything they need... right when they need it. keeping more pets, and families, happy. ♪♪ for the love of moving our clients forward. for the love of progress.

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let's give you a quick market check. the dow industrials are higher by 52 points. 38,852. that's a nice little gain there. a little bit of a move higher today. speaking of a move higher, mortgage rates are on the move today as the new report suggests the summer housing market could be bleak. more from diana olick. diana, what are we learning? >> kelly, high mortgage rates combined with high home prices

and throw in a very little supply of homes for sale, it also has a record share of consumers now down on home buying. 86% of consumers surveyed in may said now is a bad time to buy a home, according to a monthly survey from fannie mae. it's the highest in the survey's history which goes back to 2010. the share of consumers saying it's a good time to sell from 67% to 64%. mortgage rates had fallen back to 6% range but shot up in april. they're now rising again, taking a big jump friday after the stronger than expected monthly jobs report. the average on the 30-year fixed again rose today to 7.17%. the next big move could come on wednesday in reaction to the monthly release of the consumer price index. very few consumers, however, said they think mortgage rates will go down this year. more said they will go up. but most in the survey said they expected them to stay the same. interesting, though, more consumers reported their household income has gone up and

75% said they're not concerned about losing their jobs. which, guys, would make you think they would be more bullish on home buying. >> usually job strength is a key indicator, job growth, job strength, incomes is a key indicator of resilience in the housing market. here, i guess it's just people are frozen in place with those rates at 7%. >> yeah, i think it's affordability, plain and simple. even if some people can't afford it, they're looking at this market saying, it's just too expensive. >> are there any pockets of the country where the market is much more healthy and brisk than others? >> parts of the normally very hot pandemic markets are starting to ease up price wise. that's austin, texas, parts of phoenix, and a little more in the south. in the west, in the north, northeast, on the east coast, prices still rising nationwide. and the gains are still very strong. >> and people getting a lot more

than their asking price, certainly in the areas around new york city. diana, thank you, as always. we only have two minutes left if the program and several more stories you need to know. so, let's get right to it. shares of am japanese automakers plunged after the nation's transport ministry uncovered false data used to certify certain models. toyota, japan's largest carmaker, lost nearly $16 billion in market value last week alone. japanese officials also found irregularities in certification applications from honda, mazda, suze, or yam aha. they say they falsified the data in crash tests but the company said they were applying more stringent standards than the government required here. nevertheless, toyota, largely regarded as the good boy in

japan's manufacturing area, taking a really hard hit. gold miners are struggling as deposits are becoming harder to find. they say the production has plateaued, including just up half a percent from 2022 to 2023. maybe you can feel better owning some in that supply shortage. a controversial decision. usa basketball leaving caitlin clark off the olympic team. according to reports, the committee was worried about the potential reaction if clark was selected but didn't get much playing time. there's been a long history of so-called rookie players being chosen for the olympic team, both men and women, and often those players do not get much playing time. >> i'd love to know more about why this decision was made or can it be changed? that wasn't the only big basketball news. connecticut coach dan hurley is staying. >> oh, he's going to stay? >> yes. he turned down the six-year, $70

million contract to coach the lakers. so, he will pursue his third straight ncaa title on current contract of $32 million over six years, but the governor of connecticut said he would make him the highest paid coach if he stuck around. >> i'd much rather be a coach at the college level than the pro level. thanks for watching "power lunch," everybody. >> "closing bell" starts right now. thanks so much. welcome to "closing bell." i'm scott wapner from apple park in cupertino, california. the make or break hour begins with some have suggested is a make or break moment for apple and its place in the a.i. arms race. the developers conference, a chance for the company to unveil those ambitions today to try to keep up with competitors who have already revealed theirs to great fanfare as you know. we'll ask our experts and shareholders whether they achieved that goal today and what it means for the stock going forward. interesting to note, apple shares have moved lower during the presentation today.

moving around a bit.