of live events. this is how business goes further with t-mobile for business. quick, weiss. >> ldos. >> western union, 8% yield. >> walmart. >> all right. closing bell, rick rieder, the exchange is now. >> ♪ ♪ looking forward to that, scott. thank you very much, and welcome to "the exchange." i'm kelly evans and here's what's ahead. deal chatter around intel is running rampant and the shares are higher today, but our guest says don't buy into the hype. he says don't buy intel at all, actually. he's here to make his case and tell us which deal would make sense in the semi space. plus this stock is up more than 6% today as the u.s. nuclear renaissance takes shape. every time i turn around there's a new headline. we have the name and the news behind today's move and an

exclusive interview with the ceo ahead. that's our mystery chart, by the way and nike, starbucks, boeing all have new ceos, but is it enough to buy the stocks. tim seymour is here with the trades and he feels so strongly about one name and one ceo needing to leave that we're bringing you a special edition of three buys and a bail today with a boot as a bonus. let's begin with today's markets and dom chu has our numbers. >> i can't wait to see what the bon bonus is going to be. it's fractional, and it is positive. well, just now in the last minute the dow industrials have been slightly negative. we are still down 18 points and that's 42,045 for the blue chip index and the broader s&p 500 is still holding above the 5700 mark. 5704 is the last trade up about two points, again, just marginal gains, again at the highs of the session we were up 23 points and now three points at the low and tilting towards the lower end of the range and still slightly

positive. the nasdaq composite and the tech-heavy index just flat on the session and very marginal declines and eight points to the down side on the basis of 17,939. that gives you an idea. again, slow and steady right now. that's what we'll call it. one part that's seeing another record high and i'll put the star up right off the bat is gold prices. another day and another record high and it's off the session highs and it's up one quarter of 1% and gold futures at 2653, 2659 and change. i think 2659.80 is the new high watermark and the record high intraday level and keep an eye on the futures and by the way, as a result. gold miners etf ticker gdx up half of 1%. you have to go back a couple of years back to 2022 the last time we saw prices this high for the gold miners etf, so again, april of 2022, more than two-year highs for the gold miners and kelly mentioned intel. dow component chip giant, one of

the best-known giants, and up 22% a share. we do know from the headlines on friday about the possible deal talking between qualcomm and the private equity firm maybe talking about making a multimillion dollar investment and all of that is driving shares and we are down 34% for the year and kelly, i went back to the analysts and to the dotcom era when intel hit its all-time high on a split-adjusted basis, it was close to $75 per share and we currently sit at 22.48. >> before we go to that and look at yet market might be weak, it's hard to say, but there are comments about the israeli army chief talking about the offensive operation they launched this morning and saying we are striking targets and preparing for the next phases. you can say we haven't seen much of of a broad market reaction between what's going on between israel and lebanon, but you do wonder if the markets are doing

as the day goes on. >> this follows construct in the recent to medium-term history that geo-political events have been absorbed and they are discounted and absorbed on a much larger basis and there doesn't seem to be the kinds of panic that we see because of geo-political events even like crude oil. >> absolutely right. think about those jamie dimon comments last week where he says geo politics might be the biggest risk and is this the market discounting somewhat. we'll leave it there for now, dom chu. >> my next guest says don't believe all of the hype about the qualcomm intel deal because it doesn't make sense strategically and he doesn't see a better fit with another chipmaker. joining me is jordan klein at mizuho americas, it's great to have you here. welcome. >> we've seen not just qualcomm headlines and now possibly a private equity involvement with intel. i don't want to say the vultures

are circling because that would be unkind, but the bids are circling. let's say that. >> yeah. i think you're going to continue to hear or see headlines just in the coming days and weeks. you've already seen them in the past about options intel may have either with strategic partners, splitting businesses and spinning off businesses and they're taking up everything out there to improve their current business situation and their options going forward, but again, a lot of that, i think, is just noise and doesn't make a lot of sense and that's kind of what i was saying this morning as it relates to qualcomm buying the entire company. i don't see that as likely or a good strategic fit. >> i wonder if this is going to be about taking over intel broadly at all or it's effectively two companies and they make their own chips and the foundry that wants to make chips for other people. which one of those businesses do you think bidders are most

interested in or even as the company says they're not doing this, if they were to spin one out, which one would it be? >> well, i think there's a lot of uncertainy and risk associated with the manufacturing or foundry business. first of all, it's heavily dependent upon intel's own volumes of chips that they sell which they've been moving market share and struggling and second, it's very capital intensive. you need billions and billions of dollars to fund it and you need to win external non-intel customers which is a huge question mark and you're going up against the best in taiwan semi. i think there's a lot of value in the -- in the design business which is for pcs and data centers and that's where there are pieces that companies would want. i just don't know if global regulatory bodies would approve any sort of separation or buying of those assets. >> obviously, at this point it's such a national, strategic

interest. in order to be more competitive they would have to rely on taiwan and other chipmaker, but it's clear what the u.s. is doing that they don't want to see it go that direction. >> that's 100 cor% correct. >> even the intel ceo will tell you they're outsourcing to taiwan semi who is excelling at manufacturing these chips at smaller diameters and nodes and they're doing very well there. so intel is kind of a self-help story where they have to improve and get better, but that's taking time and while they're doing that, they can't afford to fall further behind their leading competitors who are also relying on tsm. >> aswath demodoran believes in the turnaround story. what is the turnaround potential that would give the best results for intel shareholders and for u.s. national security? >> well, that's a great

question. i mean, i think, again, intel has to prove to investors and their customers that they can get this -- improve their execution and put out products that are better than their competitors, and a lot of that starts within intel. i think they have some great products on the forefront that they've designed and talked about, but they have to execute and that starts with their production at their own fab. so that will just take time. now they're starting to cut costs to improve cash flow, but more importantly, you know, pat gilsinger, the ceo talks about five nodes in four years, and that's really what it comes down to. getting those new leading-edge nodes up and producing at good yields where they can start manufacturing these products that cut ofstomers want over th competitors, but again, time will tell and their competitors aren't standing still. >> no. they're sprinting ahead, in fact. quickly, before you go on that

note, you said there would be one takeover target and it's not one intel that you think would be interesting and what is that, exactly? >> again, i don't think this is likely, but one of the -- i think that if qualcomm wanted to do large-scale m and a which, clearly if they're entertaining anything with intel they're thinking about it they would be much better served buying a company that increases their revenue and market share and the data center and ai and one of the companies out there is marvell. this is a company that's in the low 60s in terms of billion dollars of market cap and it gives them an excellent, you know, technology that would propel them to be much more of a leader in the data center and the ai play. again, i don't think they're -- they're looking to do something like that, but i can tell you what, investors would applaud a move like that and basically take the multiple higher whereas all of the speculation and news about qualcomm buying intel, guess what? the stock's done nothing but go

down which people think is value destroying and not creating. >> and there's the forward p-e around 15 times. marvell is 34 and it rivals nvidia and very interesting to point out. jordan, thanks for joining us. we appreciate it, this afternoon. >> jordan klein with mizuho. >> fed officials meantime are going public with why they went with that big 50 bases point cut. rafael bostic says progress has been made on inflation, but the job market is cooling and those two developments have emerged much more quickly than he imagined just a few months ago. meanwhile, neel kashkari warranted a lower fed funds rate. chicago fed president austin goolsbee foresees many more rate cuts and that was helping the marks when the headlines hit this morning. my next guest says it's unusual for the fed to ease as the profit cycle accelerates and aggressive rate cuts will be bullish, he says, for the small caps in particular. joining me is richard bernstein,

ceo at richard bernstein advisers. good to see you, richard. bring us up to speed. what have the small caps been doing since last wednesday? >> they're doing well, but certainly nottee keeping up with the more speculative stuff which has done very well and even crypto has done well and that should be a warning to the fed that maybe they didn't need all of of this liquidity because it's not going to productive use. >> so let's build on this. as a small-cap devotee and as people want to see the rise in the west of the u.s. economy so to speak, this is not the reaction that we would have hoped for? >> kelly, the reason we're such big bulls on midcaps and small caps is that's where the earnings growth is forecasted to be. by the end of this year, early next year we're going to find that small caps at least right now that small caps are going to grow at a multiple of what the magnificent seven is going to grow at. that's not unusual when profit

cycles trough and they have sensitivity to the upturn in profitability and as you pointed out, what's very unusual here is that the fed is easing into this accelerating profits environment. normally, they'd be tightening. so some of the comments that people that you quoted before, profits are the lifeblood of employment and profits are the lifeblood of investment. you know, capital investment and so as profits rev up, we should see normally the economy just get stronger naturally. now we have the fed easing on top of that. that's like putting fuel on the fire. >> i'm going to ask something that i kind of can guess your answer would be out of character, but is there anything in this reaction function or the chart that we showed which had the mega-caps beating the smaller caps year to date. you know what? forget it. it's time to load up on the mag 7 and off to the race into year end? >> certainly, there are a lot of managers doing that. the data show that that's what's

happening. >> we are fundamentally based and if you're a momentum manager, i get it, that's where the momentum is, and if you're a momentum investor, i get it. if you're a true fundamental investor, though, it's hard to argue that the mag seven are investing in them now by fundamentals. they're slower growth and more expensive than other parts of the market. in other words, other parts of the market are cheaper and faster growing. history says that's a good combination. cheaper and faster growing, we'll see if that actually happens, but history's on our side. >> if we see gold up, crypto kind of taking off the big-tech momentum trades, outperforming the rest of the market since the fed move. really, what does that tell you? that they shouldn't have gone 50? >> i would separate it a little bit about gold versus cryptocurrency and i think they're a little bit different, and i don't think you're finding, there's economic use to gold, industrial uses and things like that.

there are only economic uses for bitcoin and illegal purposes. you can't buy a couple of coffee with it, but there is a difference there between the two. however, if we did see a speculative fervor come into the marketplace i think that's a very bad sign for the fed. my argument has been for 20 or 30 years now that excessive financial asset inflation is as damaging to the economy as excessive real asset inflation which we would call inflation. what we call excessive financial asset inflation we like to call the bull markets and everything, but bull markets become speculative and become bubbles. that's not healthy for the economy either and the reason why is because you get a gross misallocation of capital within the economy and that causes inflation. in other words, you allocate capital things you don't need, i would argue, crypto currencies and you don't allocate capital of the things you do need like the electric grid and things like that, and so i think the fed has yet to truly understand

that excessive financial asset inflation can be inflationary, as well. >> i think it's -- i think about the weaker dollar, rich, as well and how much of this is kind of the flip side of that, and you can say, it has implications for inflation and for real assets, for financial assets and they all rise nominally, but do they really increase in value? >> right. >> putting all of that to the side, i don't know if i can ask you before you go, as you're watching the saga with intel and the saga with boeing, i don't think of you as stock pickers and you're leaning small cap. do you have a preference or view? >> these are u.s. champions of industry which are adrift right now. >> right. >> so, kelly, i don't want to talk about individual companies, but let's talk about this in the grander scheme. i think the deglobalization is the big investment theme, right? the reality is you mentioned the weaker dollar and the weaker

dollar gains increasing importance with we run a massive trade deficit which is ever increasing in the united states. so the dollar imports more and more inflation as it weakens versus 30 years ago or something like that, but your point's very important because as globalization contracts, we have to realize that it's not just semiconductors that open up the united states and national security implications. it's the fact that we don't produce anything here in the united states. that's basically when our trade deficit shows, and so the risk to the u.s. economy are mounting. we think that presents tremendous opportunity as one of the reasons we're such big fans of mid-cap industrials that focus on the u.s. economy because we think they are the big growth beneficiaries of deglobalization. >> that's really interesting, even as you'd argue it kind of sounds bad or, you know, i don't want to say bad, and it will be less productive overall while trying to build out something that will be more productive and more secure in the long run. >> absolutely.

that's a great point. rich, we'll leave it there. thanks for joining us. richard bernstein. >> don't miss an exclusive interview with brian moynihan next hour on "power lunch." that's coming up at 2:00 p.m. eastern, i should say. coming up, whole foods owned by amazon now, of course, we'll get his view on the state of inflation and incorporating tech and ai into the grocery store, but first the re-starting of three-mile island isn't the only nuclear news in the headlines and one of the world's largest uranium allies is buying tintos in wyoming. the ceo is here and the exchange is back after this. >> this is "the exchange" on cnbc.

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welcome back to "the exchange." a lot of movement in the uranium trade lately with global x uranium, up 7% since last friday and that's when constellation announced its plans to restart 3 mile island nuclear in order to power updata centers. today 14 banks have pledged to support nuclear energy, a move that could unlock massive new financing for the industry and my next guest's company is one of the largest uranium producers in north america. today announced its buying rio tinto's uranium assets in wyoming including a processing mill. uec's stock is up 8% on the news

and here is amir adnani with the energy corp. thank you for being here. >> great day to be here. a lot going on. >> how long has this bear market in uranium before things started to take off here. >> it was an 11-year bear market and it was unusually long and now we're coming out of it with incredible momentum like we have never seen in the history of nuclear power. >> how did we go from kind of left for dead -- i mean, that was the way it felt to me five, eight years ago. i think it was southern company's project in the south. >> yeah. >> these are going to be $10 billion to take 25 years and the u.s. could never do nuclear and it's over and now suddenly we're going through a renaissance. >> i think the recognition that there's no way to achieve carbon neutrality by 2050 without nuclear power was bringing nuclear back into the mix. nothing says nuclear back like restarting 3 mile island and it's such a powerful symbol of

the rebirth that nuclear is experiencing. so i think when you consider that, coupled with the pledge they alluded to that the banks are making today, you have the combination of the right public policy, bipartisan government's report and out in financial support that's needed. let's not forget, public opinion polls for the fourth year in a row are also at an all-time high and support a nuclear power. >> plus at a time when we have massive deficits and we're adding up the cost of all of this, the idea that just at the right time the big tech with deep pockets is going to come in and basically partner this new infrastructure is like a miracle. the only thing that would tell me beyond this if nuclear is back is if germany would restart its reactors because they're increasingly out of step, would you say? >> we have 100% with the big tech's big pockets and the need to power data centers. the big issue with data center growth is exponential and the issue is energy, and the energy that nuclear power can provide, microsoft is a great example of

that and oracle has been talking about it, amazon earlier this year and this represents a paradigm shift in demand when it comes to the electricity output and nuclear reactor. so this is now causing u.s. utilities to extend the life of reactors and bringing back previously retired reactors on top of building small, modular reactors and the larger reactors like the ones that were built in georgia. so again, it's unprecedented, but it is unprecedented -- i don't think six months ago we could have seen data center demand for ai and cloud computing. >> absolutely. >> -- be the driver of demand for nuclear-generated electricity which is clean and reliable which is why the companies are looking for it. >> and to have the brainpower with the big stake and the bill gates project in wyoming saying we'll make this work and figure it out how to do it more efficiently than the previous generation. critics sometimes say, and i

wonder if we know yet, but the fear is that big tech will come in and drive up prices for other households who are using power. do you know? can you speak to that if it is going in the near-term or the long term to drive up the energy that households are using for power? >> it's competing for a scarce commodity and that commodity is clean, base load electricity that's being generated. so when you have at least what's being reported one-third of existing reactors in the country being in discussions to potentially sell their power out to a big tech company, that does potentially provide a bit of constrain on the grid because now the availability and electricity that everyone is competing for and that's why utilities need to invest upward of $50 billion here to be able to keep up with this and look, when you look at the demand that's been forecast by 2030, that's five years away. 9% of u.s. electricity

generation is expect to be consumed by data centers and we have to plan for this and that's why i think it's so powerful that the government support along with the banks and all of that is lining up, and it all started in dubai. it started at cop 28 when the countries middle let's make a pledge to triple nuclear power instead of double by 2050. >> interesting. >> these are all of the steps i think we need to take to be able to fulfill that pledge and it is amazing to see the stars align so favorably. >> and it's clearly going to accelerate from here. the question i would have from an investment point of viewis do you ever want exposure to a pure commodity like uranium and i think back to the wager of the 1970s and '80s and you think increased demand would lead to higher prices which brings higher prices and lith ium, as well and the uranium producers like yourselves and this is a highly cyclical business with high price valuations and how will we know if they're long-term stewards of capital.

>> you have to look at the fact that nuclear power and the nuclear power generation, uranium makes up a very small percentage of the overall operating costs and less than 5% of the operating costs for a nuclear reactor. so there really is a demand in elasticity and price in elasticity when it comes to uranium. unlike where demand for electric vehicles is discretionary, and once they're operating they need uranium, year in and year out which is why we're seeing this very strong profile right now where this is the best time to be a supplier of uranium. this is the best time to be in the supply chain of nuclear fuel because on top of that we have political issues. russia is our biggest supplier. one in every five homes in america is powered by nuclear and we're importing it from russia who recently you've had vladimir putin say maybe we should consider exporting and not exporting uranium to the west. >> that's a great point. i think that's a very fragile situation that needs to be addressed and that's why it makes such a strong business

case for uranium. >> even with the shares down year to date. >> that's why we made the acquisition that we announced today that you touched on. this is our fourth acquisition in three years. >> wow. >> we've put over a billion dollars in acquisition growing our business in north america and we are the largest play in this company and in north america, and i think it's always a great day if you can find fully permitted projects that can be really moveded into production quickly so we're putting our money where our mouth is and we think to build domestic supply chains is absolutely necessary if the data centers are going to be powered and if all the nuclear power growth that we're talking about is going to be realized. >> and as we've seen in other commodity areas, as well. scale will be key if you don't hire efficiency and so forth. the shares are now up almost 11% and more investors will be keen to hear about your plans going forward. >> thank you for your time.

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♪ ♪ >> good afternoon, everybody, and welcome back to "the exchange" and i'm tyler mathisen with your cnbc news update. israel struck lebanon which targeted a senior hez bbollah leades whose fate was unknown. it comes as 800 air strikes across the country today alone in which lebanon's health ministry says more than 200 people were killed and more than a thousand injured. california is suing exxonmobil over its alleged role in globalplastic waste pollution. the state alleges the giant misled the public for decades by falsely claiming all plastic could be recycled. suing people makes headlines, but doesn't solve the problem and says it's advanced recycling work is a real solution to the plastic waste problem. and the food and drug administration issuing a recall in 27 states for lactaid, the

lactose-free milk saying it may contain trace amounts of almonds which aren't listed on the lable. the fda says it could pose a life-threatening risk with those with a severe allergy to those nuts. >> i'll bet. tyler, see you soon. thank you so much. >> sam altman could be on his way to being the power player in silicon valley. now reporting this weekend gives a glimpse at the web of tech titans that are now tied to him and to open ai. let's bring in deirdres abouta with more on today's tech check, deirdre? >> you're referring to the johnny profile in the new york times over the weekend in which there were tons of tidbits after ive's leaving apple and his real estate shopping spree and his budding partnership with sam altman. i've confirmed he's working on a device and could raise over a billion in funding by the end of the year. it underscores this option that

altman is one of the most powerful people in tech at the moment and building products that compete with them. take apple. altman cut a deal to put chatgpt on the iphone and that could potentially be an iphone killer and that is a new computing device made for and in the age of generative ai. in a similar vein, altman received millions from microsoft that could compete with microsoft. eernta you willy there's still a long way to go upon. the incumbents are very well capitalized and they're cutting deals of their own to stay ahead. take the take unders designed to gain talent and skirt regulatory scrutiny. if it isn't already clear, altman is a kingmaker in the space and his reach and influence is only set to grow as open ai nears the closing of its latest $6.5 billion funding round which would be the largest round-up. be sure to check out the latest in our digital series where we

look at altman and the open ai's next chapter will be the most important and the stakes are only getting higher. as we've seen altman not without his detractors and the dramatic reinstatement at open ai and that was still less than a year ago, but man, he's done a lot. >> i am shocked they're raising this much for a business model that is still -- how much money did they lose on every query at this point? >> i don't know how much they lose on each query, but revenue is said to be somewhere in the 2 and $3 billion annually for yes, a company that could be valued at $150 billion or more. those numbers are ridiculous, but i mean, those numbers vcs are willing to look past because it's got the deal with apple that's going to be coming online. you'll be able to access chatgpt from the iphone so the idea is that it's in perfect placement for that revenue to just increase, but it's going to have to increase a lot to justify that valuation. >> it would still be crazy if he inked a deal with apple to power

siri while developing a rival to the iphone. >> exactly. this is, like, the mystery and sort of the touch of sam altman that he's able to do all of these things at the same time. he's going to be learning from apple, you would think, right? by doing this deal and he could potentially use that information to compete with apple. >> now i'm thinking through this like a drama. he jeopardizes the deal and the phone doesn't work and -- >> it's a constant balance and we know that about sam altman. he takes bold moves and maybe a lot of risk along the way. with a big war chest nevertheless. deirdre, thanks. deirdre bosa. inflation does remain one of the big issues this election season and after the break, we'll get a c suite view from the head of inte afoods and plus how they're usg chnd ai in the grocery stores. "the exchange" is back after this.

nate jones... lines things up... checks his fidelity app... looks to outside analysts to get a second opinion.

nate likes what he sees... and he places the trade... talk about easier investing. welcome back to "the exchange." online grocery sales rose for the third consecutive month in august, hitting a year to date high just shy of $10 billion according to new date. our next guest is at the helm of a new name and the brick and

mortar grocery and has doubled down on bettering the brand's in-store experience. if you haven't guessed already we are joined by whole foods' ceo jason buechel. >> thank you, kelly. good to be here. >> there should be a sitcom or drama just all about this grocery store and the last two years you've been at the helm have been through the biggest changes in prices we've ever experienced at least in our life times. what's that been like for you trying to operate the stores? >> first, customers are, you know, challenged at this point where they're seeing inflation across every facet of their lives including food, and so for us, it's been how do we help support customers and take the right step in, one, bringing more value, but still preserving quality. you know, for us, having the highest quality food standards within grocery has been part of our history going back 44 years ago, and we'll continue to elevate those standards and at the same time help bring opportunities for more and more

customers to come into whole foods, so if we look at year over year, we've doubled the number of promotions we've had within our stores and we've reduced prices on 25% of our items across the store and we're seeing customer behavior change and we're seeing more customers come in and building bigger baskets and we also see through the nielsen data that we're seeing prices rise faster than the rest of the market and it's creating a new opportunity for customers tone joy wonderful quality and better value. >> i doubt whole foods will be hauled in front of congress and other grocers are being named on the campaign trail and senators like elizabeth warren who spoke about her concerns that companies are price gouging and this was recently and maybe we can take a quick listen to how she's saying is driving inflation in the grocery stores. >> we have the two years coming out of the pandemic, and we know that inflation went up by about 14% and that combined 24-month period, and we know the profit

margins went up 75%. that is a fivefold increase in profit margin. >> so like i said, i don't know if she would be going after whole foods first and foremost whose whole clientele is a higher price point. what would be your response to that? >> the reality is there have been significant increases in costs across the supply chain, across products, and i think one of the things that we need to do together is retailers and cpg companies, food companies is come together and find ways that we can bring value back to our customers. the reality is we're in a highly competitive marketplace at the same time, and so this is one where i think there's a lot of folks who try to put plblame as far as who is causing what and for us it's the best way to bring value to customers. >> is it collaborative. when your companies come to you and say the price of veggie puffs is $3 a bag and how much

margin are you willing to give to give an edge or is it not what drives shoppers to whole foods? >> one, we have razor thin margins from the grocery space from the get go and as a retailer we see the least amount of profitability in that equation. part of this is working with suppliers and saying, hey, if we can't bring value then ultimately customers will not bring the products and it's not good for either one of us and it's looking at ways by which we can make sure that companies continue to have sustainable and successful growth and that's the balance. >> it's just to hear you emphasize and your margins at whole foods are not that fat and not that hefty. if you think that inflation is starting to come down and yo th that trend or even go back up a little bit. do you have any insight about that? >> i'm very hopeful that we'll start to see some more trends here with inflation coming down as we look across a lot of the

key commodity areas, but there's a lot of wild factors out there. you know, labor is challenging out there, still, for so many folks including us to hire and that brings greater competition for labor and can sometimes drive up costs, as well. so our job right now is to figure out how we can work far and advance with our suppliers and collaboratively figure out what is the demand that we have to prepare for and how can we have good opportunities whether it's promotions or investing in regular price to support a high quality expe with value for customers. >> it's interesting, you're not seeing the softer labor market make it easier on the talent front. no, not at all, and that's something that we've been dealing with the challenge ever since the onset of the pandemic and certain pockets of the country are even more strained than others and so we're having to find creative ways to work upstream to help support simplifying a lot of the work in our stores if we aren't able to staff at the levels that we'd like to.

>> taking people out of the store, my words, not yours and what it sounds like for you the kind dynamics are shifted. thank you for being here. >> thaw for having me. >> jason buechel with whole foods. burdeernstein, upgrades and downgrading and they note 45% when they announced accelerated share repurchases and hiked the dividend 33% now have earnings headwinds and a potential capital raise on the horizon. gm shares are down a little bit more than 2% today. we'll get chk se ta economofhe day's other big movers next. don't go anywhere. medical breakthroughs, every second counts. but without investment, those breakthroughs are often paused. citi's seamlessly connected banking, markets and services businesses, deliver global financial solutions. so our client can keep investing in innovations for patients around the world. without pause.

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welcome back to "the exchange." we've seen record highs and we're up a quarter percent for the s&p and a tenth of a percent for the small caps and the russell is lagging. 373 on the 10-year and not a ton

of movement there and let's flip to the outperformers which is tesla and outperforming its mag seven peers after the commerce department proposed that it's banning chinese and russian components inside connected vehicles on u.s. roads. obviously, the u.s. producer will be a big beneficiary here and tesla is trying to turn positive on the year and at the same time barclays reiterating the equal weighting on the stock with 470,000 units and that's above the street consensus of 4.61. shares are lower and they're 248. coming up, sneakers, scotch tape and semiis. we've got the triedades of thre buys and a bail, up next. ♪ ♪ ♪

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it has been the season of ceo shakeups in everything from sneakers to starbucks, and we have the leadership trade and a bonus suggested one in today's three buys and a bail. here with us is tim, thank you for join ing us. build up suspense to your big relegal vooel. we'll start with new york vetokey. up 6% since the ceo will return. he has big pressure on an innovation challenge and the jordan and dunk brands. this is a buy for you. >> it is. and ultimately, it's a multiple you want to post covid has been 30, 30 plus precovisit. i don't think we're doing it on a value dieyndynamic. but elliot hill is the right guy. i think people are a bit off on how much innovation is need.

it's a marketing turn around. it's behind the brand. i do think there's still the number one global athletic brand by far. for investors that are somewhat patient here, because i don't think the turn around is immediate, i think that investor day is something that you probably get a bit of a reis set. that's your opportunity. >> so when it goes down, if they announce some big changes, i'm curious as we go through these, which ones will be the quickest to turn around. the next one is boeing, which is down 5% since kelly took the helpment in august. they had the door plug blow out, space capsule issues, the worker strike, all of this on his plate. he also just ousted the head of space and defense. but you still would be a buyer here. i don't know at this point people are saying it might be a multiyear turn around story. >> i'm long boeing from 50 to $70 higher per share. i'm not happy what's going on. there's a credit issue. the company is doing everything

they can to maintain the current credit quality. the dynamic of free cash flow is maybe $15 per share. i think it's not late $25 by some of the union negotiations, there are a lot of headlines that are probably intended just for that. i think this is not the quickest turn around, although this is the story that i actually have the most long-term confidence in the value here. >> interesting. i love the hint. the worse they do, maybe the better that helps the company ask those negotiations. although they are facing a tough battle and some of the other negotiations indicate that as well. let's move along to starbucks, which now has former chipotle chief in the driver's seat. the shares are up 4%, but they are still negative on the year. he wants to make the store experience smoother. but they also have some demand pressures overseas. big questions about what's going to happen with the china unit, but you're a buyer or an owner, i should say.

>> and both. i think for me, it's been a trade where there's exposure. i think he's looking to turn things around faster than people think. ultimately, people understand he is someone that will support this premium brand this is kind of that turn around he inherited in 2018. i think starbucks, it's not broken. i think the chaos in the stores is a diementalic that's slowly being fixed. i think the macrohead winds on discretionary and surprising pressures are things that don't also change under a new ceo, but this is a story that i think actually still has room to run. i think this is a name that on valuation is kind of in the middle of the five-year range. i think the turn around plan, this one is less broken. i think there's maybe more play to work with. >> those are your three buys in the ceo turn around space. the bail is 3m, which is up since may. they do have a forever chemical litigation spin ning off the

health care business. shares with well off their highs. why are you buy bailing? >> this is a valuation move. this is valuation. in a base-case scenario, you're at 13 times, which is real cheap. if you're looking for a catalyst on spinoffs, some of those are in the price. some of the dynamics in terms of efficiencies and margin are in the price. it's a case of a ceo that made a major change. it's about where there was a shakeup and there was a catalyst to unlocking some of the value here. but thiyou have had a great run. why wouldn't you take profits here. >> the it's about 18. so if there's a newer version, certainly watch out. but he might be a template. i don't know if you can apply it industry wise, but for the success of leadership in one of these big turn around changes. so we have to talk intel. you chose it as your special boot on friday. saying it's time for pat to go. the shares are down 64% since he became ceo. now we have deal chatter.

it's a horror story in terms of the underlying assets where you had a case where kwoul come, they needy versety indication. i don't know this is the deal that can get done. i think it does get done. there's certainly dilution for kwal come. but they have overseen not only balance sheet slippage, but the technology gap here is extraordinary. i think over the medium to long-term, investors will be rewarded. there's a lot of questions in terms of even look at the apol low headlines from friday. this is also an equity partner who has invested in the essentially entity. 49% of that. the company needs cash. and the turn around is the question. what's the trade yuf on cap ex,

which we all know is something we need. >> shares up 4%. maybe a bigger change is coming. for now, thank you. we appreciate your time. "power lunch" is next. that's after a bak re. whatever you're into, mercedes benz has an suv for you... “city shopping spree” you. “weekend getaway" you. “outdoor adventures" you. stylish. powerful. sophisticated. because when you're in a mercedes, you'd expect nothing less. mercedes-benz suvs, featuring the gle plug-in hybrid and the all new glc plug-in hybrid. visit mbusa.com for special offers on select suv models.

daughter: hey, dad. dad: hey, sweetheart. daughter: what are you doing? dad: i'm gonna clean the fence. daughter: it's a lot of fence. dad: you wanna help me? dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot and cares even more... you can do this. ...you're unstoppable. (♪♪) wow... are you kidding me? you can do this. at truist, we believe the same is true for banking. welcome to lunch. welcome back from the w7bd. stocks are higher across the