♪ welcome to "power lunch. i'm dom anyoinic chu alongside y evans. president biden expected to announce new rules to have airlines pay customers for delays and cancellations if the airline is to blame. how will this affect the carriers, and it sounds great for passengers but will the cost be passed on to us anyway, kelly? >> that is the question. we will debate it. peloton's stock has been a disaster for a couple of years now, but one analyst upgrading the name today is it really investable now? we will see. let's check on the markets, though, as we see the dow down 55 points. s&p is up by a couple. the nasdaq is up 13. regional banks rebounding. pacwest up after cutting the dividend to preserve cash. off the best levels of the day man, this has been super

volatile the last couple minutes. now it's up 8% six flags sqjumping on strong earnings people are spending more at the parks. this stock having its best day in three years, popping 20%. and bofa upgrades to hold from sell they had just come to sell a month ago. what changed lithium prices they've stabilized they say it'll bring buyers back to the market, 3.5% pop today, dom. new proposal from the biden administration could create some massive turbulence for airline stocks we are all aware flying has now become very tense. there are plenty of stories about unruly passengers and customers being kicked off flights or even arrested at the terminal and one key cause of the growing frustration are frequent delays caused by industry-wide issues now, the white house wants to require airlines to compensate travelers for outright cancellations and delays phil lebeau joins us with the details. i have to admit, phil, as a

flying customer, i'm very happy about this but how much can the airlines actually control >> well, that's the question, dom. this is really moving towards what we see more in europe if you fly in europe and there is a delay, that's because of the airlines, because of poor staffing or mechanical issue, and we're not talking a 15, 20-minute delay, we're talking about something three, four hours, then you are compensated in europe. that's the heart of the proposal this would be cash compensation if there is a delay or a major delay, i should say, or a cancellation, and the airlines would pay you for hotels, meals, rebooking, and, again, this is for lengthy delays not a half hour delay or an outright cancellation due to the airline's fault. in other words, like i said, a mechanical issue poor staffing. not because a storm goes through. a storm goes through and flight gets canceled, huh-uh, you don't get compensated. all of this has to do, in large

part, because of what we see in the last year, year and a half, with the airlines, as we saw them add flights they couldn't always keep up in terms of what happened in terms of cancellations the meltdown at southwest is example number one, where they could not get the schedule in place to accommodate people. remember, they had 16,000 flights that were canceled in the last week of last year the d.o.t. bushed pushed southw compensate those customers, and they're working with it. we talked to ceo bob jordan about that shares of southwest, keep in mind, the meltdown, it cost the company more than $1 billion so the airlines realize it's not good business to have cancellations. now, will this change things dramatically i'm not sure it will because the airlines have already said, and bob jordan told us this, look, we're adding more slack into the system we're not going to be as aggressive when it comes to scheduling as we were last year. when you have the possibility of having to compensate passengers, that will change things, as

well so we are waiting to see the final details about this proposal, but we're really moving more towards a european style system, where if there is a cancellation because the airline is at fault, you would receive cash compensation or at least the offer of cash compensation >> all right phil lebeau with the latest on the possibility of some of those policies going into effect so what will these proposed changes have on the airlines in terms of overall impact? will any additional costs eventually be passed on to customers anyway in the form of higher fares or fees let's bring in jamie baker, senior airlines analyst with jpm jpmorgan he upgraded american airlines this morning and downgraded southwest and frontier airlines in the same note welcome, jamie by the way, congratulations on being inducted into the institution investor hall of fame, one of the best airline analysts out there let's talk a little bit about whether or not these kinds of issues and things can be resolved by a fee structure.

i will say, jamie, i was flying from austin, texas, back to new york just this past week we were delayed for weather, by hours, and i understood why. because there was a ground stop in new york city what exactly can customers expect >> well, you know, as phil just eluded to, we don't have the fine print yet in terms of what the administration is actually going to recommend in the scenario, you know, in your example, for a weather-related delay, i would suspect that, unfortunately, there would be, you know, no compensation coming your way so we don't actually have anything yet to am nalyze, but e do know this whenever incremental expense is placed on airairlines, whether is higher fuel, a new pilot contract, having to compensate passengers, the ability to put that to passengers is always more challenging for those airlines that really target the most price sensitive passengers.

you know, the really elastic end of the demand curve. so, you know, we'll analyze the details when they come out, but my initial view is that this is a discounter airline tax >> okay. so that means if you look at the overall pricing scheme for special airlines, jamie, that the deltas, americans, and united would fair better on a relative basis compared with the southwests, jetblue perhaps, and maybe the frontiers? >> yes, that would be our conclusion for example, i've seen it suggested that airlines will have to be able to interline passengers so if your passengers are disrupted, or disruptive, i suppose, you'll have to have the ability to place them on a competitor american, delta and united routinely do that. the reason discounters don't is because there's cost associated with it. there's technology associated with it.

there is head count associated with it. so your conclusion is absolutely correct. we would think that the relative pressure would be felt more on the discount airlines who, you know, right now, are no longer maintaining that margin high ground that they once did, which was one reason we made several ratings changes this morning. >> janmjamie, i wasn't sure if deals had anything to do with that, as well, the uncertainty there, but, man, taking american to overweight when that was supposed to be the one that came through the pandemic in the worst shape with its debt and everything else, talk to us about why you think that has such large opportunity. >> look, i'm fortunate because i work very closely with jpmorgan's airline credit analyst, mark streeter mark and i have both been impressed with the speed at which american is bringing its balance sheet under control. and that really is largely a function of just how strong the demand recovery has been it's somewhat paradoxical. if you think back to the second

quarter of 2021, american was losing money, demand trends were very, very poor, and that's where its debt peaked, close to $50 billion on a gross basis yet, the stock today is 35% lower, despite american returning to profitability, the demand recovery is well in excess of what anybody was hoping for in 2021, and they're about 60% of their way on the way to that, you know, reducing long-term debt by about $15 billion by 2025. normally, when airlines go from losing money to making money, when fundamentals get better, balance sheets start to get brought under control, that's a reason for stocks to go up, not down what was the crux of the recommendation >> makes sense i mean, again, jamie, thank you so much for joining us today a lot of news in the space, yours especially we really appreciate it. jamie baker. from airlines to autos, shall we let's talk tesla the stock slightly higher today. you might not have guessed it, but over the weekend, we learned

warren buffett and charlie munger are fans of elon musk. >> yes, i think over elon musk overestimates himself, but he has a -- he is very talented he's overestimating somebody who doesn't need to overestimate to be very talented he would not have achieved what he has in life if he hadn't tried for unreasonably extreme objectivities. >> my guest says tesla is getting a 98 out of 100. let's bring in james geller, the ceo of rapid ratings jim, may i >> either one. >> tesla you think is balance sheet and financially speaking and pretty sound shape >> tesla is doing really well. at a 90 on the financial health rating scale, it is the farthest away from a financial problem, default. when you really break it down, you're talking about a company that has a significant amount of

cash relative to any liabilities. you have a significant amount of cash rel tative to missteps. strong operating profits and net profits. any way you slice it, it's a very strong company with very little to worry about. >> different story from, what, three, four, five years ago. >> sure is. >> look at the reason why tesla was such a, i guess, lightning rod story, was because people were saying they had to invest so much money in there they weren't really profitable they were trading at multiples from a valuation standpoint, way above the general motors and the fords out there. so if you take a look at the way it stacks up to those guys, what exactly then does that say about the future for tesla versus a gm or a ford or a vorlkswagen who have ev plans of their own >> the major manufacturers are doing pretty well. we can talk about a 62, 69, 65, where a lot of the major manufacturers are congregating

ratings wise those are low-risk ratings over 90% of companies that failed in the last 20 years have been rated 40 and below, so the companies rated 60 are actually really quite strong. what tesla has that others don't is the ability to experiment with things like pricing you're seeing that now that's a way to capture market share at a time when many people are afraid to buy new cars because they've become so expensive. you have a perfect storm in autos, like a lot of other industries, where you've got high inflation, you've got recessionary concerns, you've got the move to ev which can provide even more costs and embed more costs, and you have supply chain challenges. >> right. >> all those wrapped together. >> but it's fascinating that, basically, your analysis suggests tesla's price cuts come from strength and not desperation, and that's obviously been an argument point in the market. it's also -- we watched the shares, for instance, auto zone bought back, like, 85% of the load, crazy. but are those auto parts retailers, you think, in fundamentally good health? are they continuing to benefit

from the pandemic tail winds or not? >> they're fundamentally reasonably strong. auto zone, 64. o'reilly's, 68 these are good ratings a lot of that comes from, again, the consumer factors people are trying to buy fewer new cars perhaps, holding on to cars a little bit longer in doing so, they're buying more parts. those are fundamentally reasonably strong companies because of that factor. >> is that a longer term trend, people taking care of their cars longer if so, does the -- >> dom asks it. >> i ask this from a position of experience. >> 25-year-old car. >> i have an '05 infinity with a 218,000 miles on it. i've been paying for the upkeep, costing me more now. but can you do the same with evs that you can with my internal combustion engine vehicle. >> i'm worried you're not driving your car hard enough but we don't know yet. we haven't gone through enough cycles with evs. without question, there's a big

push, and every manufacturer is pushing more for evs, which is creating more supply chain issues but also creating more demand and education of the consumer base. not everyone is prepared to go there yet, and that's one of the reasons, they don't know how much flexibility they'll have with their vehicle. >> you say tesla may be healthier than expected, even the oems, car parts. carvana may be one of the unhealthiest names out there just up 25% last week. people jumping into it kind of hoping for, i don't know, a lifeline here. what is your analysis? >> carvana is rated a 16. >> wow. >> zero to 100, it's hard to be a 16 they're doing that because they have been losing money the pop in the stock last week after their earnings was a suggestion that they may be on the way to becoming even adjusted positive in the upcoming quarter even if they are, that doesn't change the fact that beneath that is a huge interest payment. they have about $8.4 billion in debt >> wow. >> they're in the process of

negotiating or tussling with two major players, apollo and pimco two of their bondholders, for ar an exchange. they tried a coercive exchange, which was rejected they were looking for a conversion in interest payments. we don't know yet whether that's going to work, but it has to because they don't have enough cash to pay interest for the balance of the year. >> maybe the poster child for those who face refinancing issue this year. >> it's a little bit of a -- it's the tip of the iceberg above the water. there are lots and lots of companies today like carvana that have too much leverage, have operational degradation over the last handful of years, and are in a position where if they can't refinance or somehow turn around the operations to generate enough cash flow to cover their interest payments, much less retire debt, they're going to be in a similar position. >> that's really interesting james, jim, thanks for joining us

appreciate it. we have some news just out now on the banks it is called the slooz senior loan officer opinion survey s-l-o-o-s. it tells us how much or how little banks are lending given the current climate, it's getting a lot of attention for obvious reasons, certainly today. jeff cox is looking at the details for us let's talk sloos is the economy still getting the money it needs to maybe, dare i say, grow? >> dom, the report today which covers the first quarter of the year didn't have a lot of surprises in terms of what's happening right now. look, bank lending standards are tightening demand is tightening credit standards are also -- sorry, credit quality is also deteriorating somewhat the big news from today's report is that they asked several special questions of institutions about why they tighten standards and why, more

importantly, they expect to continue to tighten standards. some of the answers there were kind of scary. first of all, they said in terms of why they did tighten standards, they cited an uncertain economic outlook reduce risk tolerance, deterioration in claus roll va -- collateral values and concerns of bank costs and liquidity positions. when asked what they see things looking like going forward the next 12 months, the report says the banks most frequently cited their own portfolios, customer cl collateral values, risk tolerance, and bank funding costs, bank liquidity positions, deposit outflows, as reasons expected to tighten lending standards the rest of 2023 of course, that translates into, you know, less lending, less economic growth. this is the very thing the fed's own economists warned policymakers about back in march. they expected the credit issues to result in potential shallow recession as we go through the rest of the year, so that really

was born out through this report today and doesn't generally get a lot of market attention. i think a lot of folks are watching today to see what we can expect going forward from the banking community. >> okay. jefft more investors talk about the scrutiny on net interest margins at regional lenders as well so it jives with sloos. appreciate it. peloton can't seem to pedal over the hill. this stock has been falling for so long, it's way down from its pandemic highs down more than 20% just over the past month but one analyst says the worst is over for peloton. that's coming up next. and as we head to break, a quick power check on the s&p on the positive side, viatris, the stock topping earnings estimates while missing on revenue. on the negative side, tyson reporting a loss and cutting the annual outlook, as well. up and down. we'll beig bk teth rhtacafr is . oh, i can tell business is going through the “woof”.

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welcome back to "power lunch. shares of peloton are higher today, getting a surprising update from capital markets. if you've watched this stock, you know all about its rapid rise and then bitter fall since reaching a peak inter-day high of 167 bucks and change back in december of 2020 the stock is now crumbled to under $10 per share, as you're seeing there way under even its initial ipo price of $29 hurt by things like shifting consumer demand, corporate

scandals and costly recalls. now, most recently, nosediving 29% in a month and reporting poor subscriber guidance but the company assures its revamp is under way, leaning more into subscriptions and less on equipment sales and the worst could be over for this stock here is the analyst who made that upgrade, simian, this is a controversial stock, i guess you can call it. pandemic peaks this was the next best thing changing the paradigm of fitness. we're a far cry from those levels now why the upgrade today? >> well, when dom said it was surprising, i couldn't decide if it was the upgrade of peloton or if it was me i've gotten wild emails, people asking if i'm feeling okay listen, i think we have had so many conversations about this company, and what i want to be very clear is throughout all our negativity, i'm pretty sure in most of my reports, we'd write,

recommended, not for shares. this is a fantastic product. a fantastic community. why did the market dislocate the value so much? why did fundamentals diverge from sentiment i think it could be as simple as we all saw vans driving outside our streets and assume the world saw it, too. that's inflective. do i think that the ultimate opportunity is through the roof? no, i think those risks still remain but the end of the day, i think the stock is now reflecting a different scenario i think that creates some nuance where it's time to step aside. >> i mean, it's almost like you could have declared victory and walked off into the sunset and, you know, saying i was short on this when everyone was long. now, it's like, okay, do we see a short-lived rebound, or is this really kind of investable thesis for the long run? >> yeah, listen, kelly, you know me well. my goal was never to root for failure or knock them down.

>> of course. >> the goal is not to take the victory lap, but the important thing, i want to be honest about this when i look at this, i say, we held our price target. price target is $9.50. that's a nice upside there do i think that the long-term concerns are behind us no i think that we were negative into the print because this was the court the company had to guide, subscriptions it's finally beautiful outside that makes it harder it makes people less inclined to pick up the bike but that doesn't mean once it gets cold out, that doesn't change i don't want to oversimply that. i think at the end of the day, the saturation concerns exist. i think it's also a thing where we took it too sentimentally positive it is possible to take it too sentimentally negative i didn't raise or lower the price target i felt it was an appropriate level. where we are with the stock right now, it argues favor interesting thing you and i talked forever about with other

brands, not about tech streaming products, but physical, fashion brands, when you sell less and charge more, when you internalize that that's what you should do, that's how you become healthy again. one thingver e interesting is you're watching the price people pay for month going up fewer customers are paying more. that works for a lot of brands, and it's a sign of restructuring stories. >> you made illusion to the total addressable market, that tam. in your mind, what assumptions does the total addressable market look like for peloton now and in the future? >> great question. i'm not smart enough to know the answer because it doesn't show it yet the reason our sell rating was predicated on the fact the data we saw, the customers being added never suggested 100 million member opportunity was close to what we were seeing i would say that's the same. i think the way that i'm thinking about it is, the 3 million members now, that's going to be give or take you're at the point you're losing about 100,000 people per

quarter. you have to find a new 100,000 people per quarter that'll be hard. i think this is going to be less a tam story, more a value opportunity, more a restructuring opportunity, if we're getting excited. that's why we want to focus on the brand. we want to see the company bear hug the brand loyalists. that's what the next would become. >> $8 a share, maybe up to $9.50. thanks for joining us. fun take today simeon. >> good to see you guys. let's get a check on the stock draft. peloton was chosen by ndamukong suh along with united health the gain in the shares is keeping him out of last place. as you can see, he's still in the bottom five. from last place on, erica sullivan, mosley, suh, mosley, shields. and in the top five, flair. >> tom bergeron in the lead. >> it's very early on right now. first ahead on the show, turning a lump of coal into a

clean energy gift, maybe for mother's day we'll look at the push to transform abandoned coal mines into heating and cooling for communities. plus, mark zuckerberg has a reputation he is often depicted as a gee jus genius, computer nerd. he's never denied that, but he is now a jiu-jitsu champion. 'lwel explain when "power lunch" returns. ♪ imagine, a car that goes as far as it does fast. as sleek as it is spacious.

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welcome back to "power lunch. the doew is down 50 or so point. the sloos report showing tighter bank lending standards came out in the past 15, 20 minutes, recovering some of the ground now. we want to turn now to the bond market after a big jump in yields on friday actions a little more subdued today. rick santelli is never subdued he is cracking the action for us from out in chicago. rick, what is the yield picture look like the next day >> you know, dom, rates are pretty firm today, all things considered if you look at inter-day of two-year note yields, anything to do with the fed, the loan survey out by the senior loan officials, you can clearly see it had an effect on two-year

note yields, pushing them up a bit. if we put a two-day, we could see that the jobs report friday resulted in a rising rate. that continued right into today. we're at the high yields of the session, and many were questioning whether friday's jobs report was actually that good 149,000 revisions to the previous two months, all weekend, all i read was people scratching their heads to the long litany of inaccuracies in some of these jobs reports but it is what it is it certainly seems to have pushed rates up a bit. if you look at march 1st, dom, and this is really interesting, we know right around march 7th, we made the high yield close at 07 for twos. to think, after the loan survey, after the fed last week, after the jobs report, we're barely at 4% 100 basis points, one full percent under thehigh yield close is unbelievable. if you keep that same chart and look at january fed fund futures, you can see it's high,

just like the longer-term two-year note yields doesn't look like it wants to be going up this doesn't look like it wants to go down, meaning the november meeting, the september, november, december and january all are pricing it a quarter point each will it happen i can't say that it will right now, the markets say it is priced in based on what dynamics are in the marketplace dom, kelly, back to you. >> rick santelli with the bond report there thank you very much. he talked about a lot more quarter point hikes, but loyalists having a great day maybe everything is coming up roses. what are we up, pippa, 2%, 3%? >> still up about 3%, extending friday's rally of course, we have to put that into perspective in the sense that we still posted a third straight week of losses last week for oil prices are still below where they were prior to the surprise production cut announced bid opec and its allies the beginning of april that group releases its market report on thursday, so that will give us a better idea of how they view the current supply

demand balance ahead of the june 4th meeting. one quick thing, energy stocks entering a death cross last week, of course, when the 50-day moving average drops below for the first time since 2018. it represents bearish sentiment, despite some very good earnings. we have more coming. we'll hear from others later today. a lot of selling in the group right now. >> like you said, selling on the one hand, buying on the other. that kind of day pippa, thank you. let's get to seema mody. >> the gunman who killed eight people in a shooting at dallas area outlet mall was a neo-nazi sympa sympathizer. symbols on his clothing and a preliminary review of what is believed to be the shooter's social media account reveals hundreds of posts that include radically or ethnically motivated violent extremist rhe rhetoric officials stress the investigation is ongoing.

closing arguments are under way in the civil rape and defamation trial against former ptd donald trump lawyers for e. jean carroll say she was, quote, exactly trump's type and pointed to the "access hollywood "tape as evidence of his behavior trump denied carroll's accusations, as his lawyers call carroll's claim, quote, an unbelievable work of fiction. and disney is expanding its legal efforts against ron desantis after the florida governor signed legislation voting disney's development deals in orlando in an amended federal lawsuit, disney is accusing desantis of doubling down on his, quote, retribution campaign by continuing to target the company. dom, back to you. >> thank you very much for the news update. ahead on "power lunch," amazon's ad venture, get it, adventure, the latest industry its aiming to disrupt using a.i. technology, and why has some big players on notice. "power lunch" will be back after this break

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you've heard people say it, a.i. is going to disrupt

everything entire industries are going to change forever, and in the crosshairs and maybe the first to experience all this is actually advertising dierdre bosa has details s on wa amazon is doing. hi, dierdre. >> maybe one of the first but certainly not the last the so-called a.i. roadkill list is growing by the day it feels like last week, it was c hegg this week, advertising we have google in a few days, and a.i. will be front and center, and could give a few more names after bestowing a.i. halos on business models that would benefit from generative a.i. the last few months, investors are increasingly trying to price in the downside stock impact of the boom they're looking for companies that could be left behind. today, goldman writes in a note, the market is entering the, quote, prove you won't be disrupted stage. ad agencies are on deck. the information reporting that amazon is working on a.i. tools to generate photos and videos that could help it push more ad

formats to smaller sellers, disintermediating agencies like wpp group. bernstein writes today, how high on the a.i. roadkill list should the ad agencies be it's brutal but similar lists being compiled at other wall street firms meanwhile, jeffrey hinton, known as the godfather of a.i., is raising alarm bells again, saying it could be a bigger threat to humanity than even climate change we've heard before from lots of important people with a lot of knowledge in this space this rhetoric. >> a lot of knowledge in the space. we joke about how there's all these really big, exciting, you know, ideas about a.i. and it turns out it just helps people file more legal claims and do better advertising it just doesn't seem so sinister when it is performing, you know, those essential functions for society. >> unless you think that those functions are going to end up creating a lot of unemployment and -- >> yeah. >> -- rendering certain business models completely defunct. there is both the sides.

this is understandable some of the people who raise the fears will argue on the other side, that at least they're being raised now, where other technologies have only been worried about it when it was too late that may still be the case here. again, it's such a new, gigantic platform shift, that there's going to be all different sides of it. you're really seeing the business model, the investing side come out with these r roadkill or short lists, the businesses that'll be hurt by a.i. >> whoever is best at it will get bigger that's probably the biggest argument dierdre, appreciate it dierdre bosa. coming up on the show, a new purpose for old energy the clean way communities could use abandoned coal mines to help heat and cool their homes. as we head to break, cnbc is celebrating asian-american and pacific islander heritage month throughout may sharing stories of business leaders in the community here is faye, the coo of tinder.

>> the first person on national television who looks like me left the impression that somebody who looks like me could make a difference in the world now, as we are building businesses and services that are meant to serve bigger and bigger populations, we really need to understand and empathize with the unique user needs that people have. in building a global workforce, we need to have new and diverse voices around the table in order to help us make long-term decisions.

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welcome back it's no secret home energy bills are headed in the wrong direction these days, but one untapped resource could help in the fight against rising costs for fuels. abandoned coal mines they could be turned into heating and cooling hubs for communities thanks to new federal funding. we explain on "the rising risks from climate change.

♪ >> reporter: underneath an unremarkable warehouse in northeastern england lies an abandoned coal mine. it is a relic of energy's dirty past but a potential gold mine for its clean future, by providing geothermal energy for homes and buildings. >> abandoned coal mines can be full of water, especially when the mine was seized. >> reporter: it fill s up with water. by drilling in holes, the water can be brought to the surface with pumps and pass through heat exchanges and heat pumps in buildings and homes. the first ever neighborhood mine water heating scheme in great britain just went into full operation the end of march and will eventually servost of these schemes, if not all of them, will be able to operate at a similar or better cost to the traditional fossil fuel heating schemes we have at the moment. >> reporter: geothermal heating

is not new, but taking it from abandoned coal mines has yet to take off. >> even in the dead of winter, pennsylvania, it's warm in a coal mine. >> it'll be a consistent temperature year round, despite what's happening outside. >> reporter: natalie cruz daniels with her students at ohio university is studying abandoned mines in appalachian, ohio, to see which are close enough to towns to be used for home heating coal fields run under 20 states in the u.s in ohio, there are 4,000 abandoned coal mines just like this one in other words, a wealth of opportunity for geothermal energy in 2007, the u.s. department of energy reported that the amount of water currently being discharged from underground coal mines in just the pittsburgh coal seam could potentially be used to heat and cool roughly 20,000 homes so why aren't we doing that? daniels says that while it is a relatively inexpensive form of clean energy, the location and legacy may be liabilities. >> i think some of it is out of

sight, out of mind, right? when we look at investment i new technology and investment in clean energy in appalachia, it's limited. >> reporter: coal is controversial, so investors don't target the coal regions, which she says is a mistake. >> in a less predictable climate and warmer world, this opens up an opportunity for turning this legacy, this liability, into a resource >> gee othermal energy can be ue to heat and cool homes and buildings. another potential, data centers. they're some of the worst carbon offenders, but researchers in scotland are now studying how hot air from data centers can be pumped into coal mines and then recovered from the water to heat other buildings. back to you guys. >> diana, i'm trying to under the fuller story with this if it is geothermal and it is mines for coal that are the key to this, does it limit the kind of building, residential and businesses, does it limit the

geographies to just those coal mine areas in, say, places like the uk or appalachia >> yeah, you have to be near the coal mine. that's what they're researching in appalachia, and that's why they put that development around the coal mines there, that they put the entire system in you have to be close to a coal mine, but there are so many across the u.s. and around the world, that there's likely to be a lot of neighborhoods nearby. >> all right diana olick with the latest, sth thank you very much. ahead on the show, a different growth opportunity we're talking scott's mir mirac miracle-gro. best upgrade in a month. we'll trade smg and other big movers of the day. our the-ocrestk lunch is coming up we'll be right back after this - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®. (cecily) you're looking pleased with yourself. (seth) well, not to brag, but i just switched my whole family to verizon. (cecily) oh, it's america's most reliable 5g network.

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we have sescaler, the top is soaring 20% after hitting its lowest level in three years just last week. it's expected to release a full third quarter earnings report on june 1st here with our trade today is danielle shay.

danielle, sescaler, are you chasing this thing >> when you look at this, one of the things i like to see is momentum you can see it held that momentum and was trading higher. the short flow is elevated whenever i get a name that gaps up like this and we have a short flow, i think it's good for a short-term upside. to that reason i'm trading this one. i'm targeting 115 on it. if we lose momentum and break through the level in which we gapped up today, that's where i would take a stop. right now it's good for short-term upside. however, i would warn traders in the longer term it's still in a downtrend. >> it's at 108 now tyson foods, we've been talking about this all afternoon we'll see if it's a canary in a coal mine.

surprise lose in q2. the stoct 16.5%. prizing power margin compression seems the concern. what would you do here >> when you look at this one, i like trading post earnings momentum when you have a big gap down like this that breaks support zones, generally it's going to keep going when you look at tyson food, it's barely clinging on to that $50 price point. if it breaks 50, we can get around 45. i think one is good for more downside i did go ahead and buy some in this out into june looking for that break if that break doesn't come through, watch out for the bounce for this one looks good for downside momentum. >> the final name is scotts

miracle grow jpmorgan said the fertilizer maker will drop from commodity costs. what do we think here? >> when you look at this stock, it's good for short-term upside. it's had a nice trend reversal i'm not going to call it to go back to where it was when you look at the stock, i like the reversal. it has an elevated short interest as well which helps with that upside buying pressure when you look at this, it's good for about another $5 of upside there's a resistance between the price points i would be careful with it, but there's more room to trade it. >> it's up 46% >> that and tyson, almost a defl defl defl deflationary --

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matching your job description. visit indeed.com/hire welcome back to "power lunch. this story literally caught our eye. watching the nuggets game, look at that.

an elbow to the neck the flop this wasn't just any fan this is the owner. a familiar face to cnbc where we know him for his mortgage company. >> yes, united wholesale mortgage this particular move, i mean, i think i've seen way too many basketball games in particular because the fans are so up close that team owners or senior executives, all these players might need a look book for some kind of -- like an image >> of all the front row places that ball should have gone the talk was should jokic have been thrown out. ishbia has been accused of certain things

jokic did get a technical. let's move on to mark zuckerberg, billionaire, philanthropist and medalist. he won gold and silver medals with the caption, quote, competed in my first tournament and won some medals for the team mark zuckerberg is a renaissance man. you remember there was that point in his life when he was only eating meat he killed. >> every year he gave himself a new challenge. >> i figured this one, though, is maybe something to do with self-discipline or being more committed. >> he started during the pandemic when we were going nuts he said doing that physical

activity gives him the relaxation to tackle complex business problems. >> or the clarity of mind. >> i guess investors should be cheering this. how do we know if these images are legit in the future because of ai? you can ask ai to show mark zuckerberg surfing on -- i don't even remember what there was a few years ago. there's going to be a team of people trying to confirm these photos we've been talking about inflation, deflation, prices for ketchup and salsa could be higher because of a tomato shortage extreme weather, record rain and snow oversaturated the soil in california could be a shortage as soon as this summer. that causes higher prices. then we see a glut in the fall when people plant extra seeds. >> how much tomato do you use in your house >> tons.

>> like the can stuff or tomato sauce? >> everything all the time. >> my kids put ketchup on everything. >> this comes full cycle to tyson foods. your chicken nuggets are cheaper, but the ketchup is more expe expensive. welcome to "closing bell." i'm scott wapner at the new york stock exchange we begin with stocks wanting to see more evidence that inflation is falling, more evidence the fed might be finished. a busy week of data and earnings just started with 60 minutes to go the dow down slightly for most of the day. that's still where it sits we have disney's numbers this week and the critical meeting on the debt ceiling there was a warning from treasury secretary