alongside kelly evans i'm tyler mathisen coming up the intersection of washington and wall street senate hearings today on what went wrong at silicon valley bank and what could go wrong with artificial intelligence plus the ftc flexing its muscles again suing to block a major pharma merger. plus a big interview coming up on cnbc later today. david faber sitting down with elon musk after the company's shareholder meeting. we'll get you ready for that,

kelly, plus a lot more >> very much looking forward to it, tyler. thanks hi there let's get a check on the markets. the dow's down 223 points right now. the s&p down 9 to 4126 the dow still 30 points below its break even for the year. so it's in the red as of this moment the nasdaq still up a quarter of a percent helped by gains once again in nvidia and some of the other semi stocks. amd. home depot after earnings and disappointing guidance, shares only down 1 1/2% right now still down about 10% year to date and check out etsy falling after morgan stanley cut its price target saying it will be hard for etsy to grow sales and profit margins at the same time. their new price target is $74 a share and the stock right now tyler is below 92 down 6 1/2%. >> all right, kelly, thanks very much economic headwinds coming home to roost home depot, as kelly just mentioned, reporting a big miss. revealing some potential cracks in the economy's foundation. specifically a slowdown in consumer demand. this along with retail sales coming in a little bit lower

than expected though they were positive courtney reagan has more on all this hi, courtney >> hi, tyler so it was home epot's first earnings decline since may of 2020 and disappointing revenue, that marks actually the biggest miss in more than 20 years for the company. it was also the second straight quarter of comparable sales declines before we saw that last quarter the last negative comp number was 12 years ago lundberg inflation took two percentage points off of sales and cold wet weather also hurt that metric. but ceo ted decker called out, quote, broad-based pressure, which cfo richard mcfail tells me includes softness in big ticket discretionary items, things like patio sets, grills and appliances with potentially some pull forward of demand and home owners shifting to smaller projects instead of bigger ones like flooring, kitchen and bath. more broadly, though, mcfail notes a sift from goods to services saying home owners have healthy balance sheets but

there's an impact of tighter monetary policy and credit conditions on the call he attributed the silicon valley bank failure to hurting consumer psyche, particularly in the month of march when it happens. mcfail doesn't think it's a trade down economy but said it's more of a situation where our customers who are financially healthy are choosing to defer larger products -- projects or larger discretionary purchases a lot going down under the hood sort of these home depot results. >> i think how you began by emphasizing how rare this kind of miss was for home depot, they've been a stalwart for years and years and years. so stick around for just a minute, courtney elsewhere on the consumer front retail sales higher in april up less, though, than expected as inflation seems to be having an impact on spending. let's talk more about what this means for the economy with peter boockvar, bleakly financial cio and also a cnbc contributor. let me go back first to home depot. i'm assuming home depot's

numbers are not inflation adjusted so if they're projecting that sales revenues are actually going to be down 3% to 5% that is in an environment where prices are actually going up so the sales decline then to me is even greater than the numbers would suggest. >> correct and one thing that -- >> thank goodness. >> -- home depot did not mention is the pace of turnover in existing home sales is near the lowest in ten years. so when you think about just moving to another existing home, chances are you're going to paint the walls, you're going to change the carpet, maybe you'll switch out some of the kitchen cabinets well, that's not happening and i think that that is also one missing piece to the customer transactions and the same-store sales thatthey're not now seeing >> peter, if i could point out one interesting thought, though, to that is the age of the existing home stock which home depot always points to saying look, the average house is 40 years old. and so if you're not moving, if these existing home sales aren't

happening, you're not creating new housing, you have to fix where you are. >> right but we did -- but what they also said was a lot of money was spent the last couple years. >> right pull forward sure >> taking care of a lot of that stuff. so that's one thing, with a kitchen or a bathroom it's going to be another 10 to 20 years before you redo that so yes, to your point about pull forward i think that's clear >> go ahead. >> i was just going to say if anything it's impressive that the stock hasn't done worse. we talked to the ceo of trex yesterday. it's up 35% year to date floor decor's up 35% some of this is a 2022 effect. but there are till pockets here where the stocks are holding up okay maybe people are taking the long view i don't know >> well, i think it's that i also think that people don't want to miss the fed is done hiking interest rate rally of anything interest rate sensitive. now, i think the home builders are rallying because the reduced pace of existing home sales is shifting things to new construction and new home sales that have now a third of the

overall market but i think that it's -- that algo that says fed's done raising interest rates, let's buy home building and anything related to interest rates. >> courtney, let me come back to something that our friend tillman fertitta said when he was with us last thursday. i'm sure you're watching cnbc 100% of the time at home, so you definitely saw it. >> never miss a minute >> but he said hey, listen, when you look back at the earnings from the first quarter, they appear to have been pretty good, but remember you're making a comparison to a year ago when we were still at the tail of covid. he says look to ekd quarter and then third quarter where he perceives a slowing of the economy. these retail sales numbers that come out for what, i guess it was the month of april, right? those would suggest exactly that, that the wind is a little bit out of the consumer sales, right? >> yeah, i think that that is a good point and i think when we're thinking

about different retailers you also have to think about the calendar in a different way too, just to be a little nuanced about the conversation because we started out talking about home depot the spring selling season is going to be way more important for home depot, say, than a macy's where the back half of the year is going to be very important for them so i think that there are some nuances as well in the timing but i take tillman's point >> yeah. >> one quick final point before we close the retail discussion it wasn't just home depot. and you're absolutely right, tyler, about the real retail sales effect, and peter i'm sure you saw this, declining real sales, increasing claims and continuing claims this is not a good recipe. >> right we see how this is now heading towards. >> yeah. >> and also within retail people are spending more on food, beauty, drug stores and -- >> travel. >> travel, leisure, hospitality. and just pulling back dramatically on discretionary stuff. yeah, goods they spent -- they bought a lot of the last couple years but that also tends to be the higher ticket stuff that they're pulling back from.

and we're seeing higher delinquency rates and autos and credit cards so there's a clear trend here that we need to keep our eye on. >> peter, you're going to stick around courtney, thank you very much for your reporting we appreciate it let's move to shares of horizon therapeutics now which are down sharply after the ftc is suing to block its takeover by amgen for nearly $28 billion. they're down about 15% amgen down 1 1/2%. and you can just add this to the growing list of mergers that are kiboshed, either in or could be in the same position facing government opposition. microsoft-activision the biggest. but also spirit and jetblue. t-mobile and rhine reynolds' mint mobile among others shares of cgen down on worries its takeover by pfizer could catch the attention of regulators and pfizer could use the boost, its stock is down 27% this year the worst of any stock over $100 billion in market cap. obviously there's a huge business impact and we'll get do that but let's also start with the human toll horizon is working on treatments

for rare diseases. would those treatments get developed more quickly and easily if amgen took over or not? let's ask michael yee, managing director with jefferies. what's the implication for the drug pipelines >> good to see you i think there's two important implications first is that the acquisition of horizon poised to benefit this drug because of the infrastructure amgen employs both here in the u.s. and globally where horizon was not expected to have the capability to market this drug outside of the united states. and secondly with the resources and r&d capabilities ofamgen and the huge pipeline to be able to further develop that drug and other drugs at horizon >> so that being said, you know, if there were a case to be made that this would benefit patients to move forward, on what basis could it be blocked? >> well, i think we are very clear with both notes out today that this transaction should go through and will go through and

that the ftc behind lina khan is making the efforts very aggressively to deter at any cost biopharma acquisitions. this is a platform that they ran on, that the case which is laid out we believe and amgen has a release on has to do with bundling and all sorts of past behavior and somehow tying that to future behavior of which horizon and amgen have agreed not to bundle and not to do anything that will harm the consumer. so we believe that this transaction will go through. however, the ftc's just been very aggressive about it >> they're being very aggressive i assume you think this is going to chill the m&a market in biopharma. >> we do in the short term. you bring up a good point. you see the xpi down a little bit. but importantly we believe that this would slow and make people consider whether or not they would go ahead with larger transactions we note this deal's about a $30

billion deal the pfizer-seagen about $43 billion. however, think about this, tyler. these companies still need to fill pipelines there's still i.r.a. risk in the future from any of these big companies. so small and mid-cap companies where drugs are not yet on the market would still be a positive beneficiary and still make a lot of sense for these big pharmas to acquire we're still on the page that there's still going to be m&a, this deal will go through and that this is not going to have a longer-term effect >> well, michael yee, thank you for joining us we appreciate it talking about the toll there we could call it. what about the business impact, peter? i guess to put it more broadly as well this is hardly just about health care and pharma we are seeing an administration that almost feels like they don't want any dealmaking to happen what will the ramifications be >> originally the ftc would block a horizontal merger because they didn't want you to get too big. now they're blocking vertically integrated mergers and mergers of a company buying a business where they're not even in that

business yet on fears that that company would dominate that new business so if i'm the ceo thinking okay, i'm going to make an announcement, i've got to go through months, maybe years of the regulatory process and then have lina khan just strike it down, i'm just not going to bother and it's going to freeze any type of m&a -- >> do you think dealmaking -- i don't mean to interrupt but is there a case in which dealmaking or combinations have been bad for markets, bad for the economy? is there a chase to be made that all of these combinations just result in, you know, five big tech companies and are bad for business or bad for everybody? >> we've learned that the economy's so dynamic, technology changes so fast, that to think that somebody can dominate a particular area for that long i just think is not realistic. and technology's the perfect example. i mean, the government went after microsoft when they had an 85% market share thinking they're the dominant player, and we know what happened since.

i think that there's a tremendous amount of overreach here that is just freezing behavior and it's the ftc just wants us to stay in our individual silos forever and there will be no change and we're all going to be stuck in this and not believing in some sort of progress or technological innovation that creates its own competitors constantly >> all right, peter, thank you very much. >> thanks. >> thank you >> peter boockvar. coming up, is the worst over for regional banks we should throw you that one too, peter the k.r.e. is up 3% this week but obviously down quite a bit for the year overall the tide seeming to calm for the moment but what comes next? some firms like morgan stanley say a short squeeze could be ahead for the group. others think more declines could come >> plus open ai's sam altman testifying before the senate as the surging popularity of chatgpt and other platforms triggers a debate over the possibilities and the perils of ai we will wrap up the key takeaways there. >> and as we head to break with the dow down almost 260 points a

quick power check, on the positive side amd today, dan loeb's third point took out a position in that name along with alphabet and alibaba koording to filings. shares up 5% on the negative side paramount a few bearish takes. those shares of para down 35% p -- 5%. "power lunch" back after this. hi, i'm todd. i'm a veteran of 23 years. i served three overseas tours. i love to give back to the community. i offer what i can when i can. i started noticing my memory was slipping. i saw a prevagen commercial and i did some research on it. i started taking prevagen about three years ago. i feel clearer in my thoughts, my memory has improved and generally just more on point. prevagen. at stores everywhere without a prescription. what if buildings could tell you how they could be more efficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data—

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welcome back to "power lunch. some quiet from regional banks lately the sector about flat over the past week and the ceo of svb is testifying today on capitol hill blaming fed rate hikes and negative social media sentiment among other things for starting a bank run that led to the eventual failure of his company. but bank of america is starting to get selectively bullish on the industry resuming coverage of western alliance and first horizon at buy is the dust starting to settle here joining us for more on thinks call ibrahim punawa slchlt b of a's securities analyst good to see you, ibrahim welcome. >> hey, kelly, thanks for having me >> this is a tough area but we have seen quite a bit of investor interest. michael buri even sheila baird the other day told us she thought some of the regional banks could be buying opportunities. tell us what triggered your buy calls here >> sure. and i think as you mentioned it is a tough area and the outlook for the banks and regional banks were tough coming into the year. you knew margins wa wr going to be under pressure, growth was

slowing down, worries about an economic recession in the next six to twelve months i think it was i atough backdrop what you've seen following the svb failure is this concern around just deposit flight it does feel things have stabilized a little bit. what's not stabilized and what's going to play itself out over the next quarter or two and i think what investors are trying to figure out is how does the deposit base at these regional banks reprice over the next quarter or two and i think you're solving for that you're solving for the macro economic outlook and as we move further away from the last fed rate hike have a better sense of just what the economic downturn's going to look like. i think there should be some stability that returns to the sector over the next few quarters >> let's talk about the two banks that you have just reinstituted coverage on at buy ratings. one is western alliance. take that one first. and then first horizon what do you like about these banks and why do you think they are worth putting imoney into >> sure.

let's start with western alliance the distinction we made and we called this out in the report is when you look at 9 banks that have failed 80%, 90% of the deposit base uninsured when you look at western alliance today about 80% of their deposit base is insured. it's the reverse when you think about just the coverage and from deposit insurance. beyond that what we would also call out is unlike some of the other banks this bank was extremely profitable so coming into the year western alliance had a return on tangible equity north of 25% as a result their ability to absorb higher funding costs is much better than what we've seen with some of the other banks and to be fair it's better than a lot of the other regional banks. yes, they've been in the eye of the storm and i think management team and we've seen this over the last two months has done a decent job navigating all of this and when we look at the stock hitting at about 40% discount to tangible book there is a disconnect and we like the risk-reward. it's not out of the woods. i think we need some sense of

stability. but you have a bank that's highly profitable, a management team that's done a good job navigating this last couple of months, and when we look at the outlook i think the risk is skewed to the upside with western alliance >> ebrahim, thanks for your time today. we appreciate it >> thank you >> ebrahim poonawala >> big hearing today in washington focusing on a.i. and deirdre bosa is following that one for us hi, deirdre. >> hey, tyler. this time around we've seen many tech hearings over the years this felt way less combative and a lot more collaborative sam altman, the ceo of open ai, and lawmakers, they seemed on the same page a lot of the time in terms of the opportunity but also the dangers of ai and they seemed to understand that the stakes are very, very high here. within the first let's call it 15, 20 minutes of that hearing generative ai was compared to the first cell phone, the creation of the internet, the industrial revolution, the printing press and the atomic bomb they talked about nightmare scenarios. and sam altman talked a lot about how he thinks regulation will have to go hand in hand with responsibility from

companies as well as public education on this. so it was a lot in there, guys, but it was a very different kind of tech hearing than the one we've become accustomed to over the last decade or so. >> was it -- it was more sort of fact finding and learning than accusatory, right? >> yeah, exactly and they seemed -- you know, the lawmakers wanted to learn. and sam altman had a lot of these questions. because this is really early, right? this is not reactive like we've seen with social media when we've seen all of the unintended consequences come out and trying to put a pandora back into the box. that's not the case with ai, this is all coming out right now and lawmakers are trying to be early. in terms of actual concrete legislation, didn't hear a lot with regards to that again, this is early so i think they're trying to understand before they put in sort of those harder guardrails. >> you know, let's go back a couple of years ago when people were saying about blockchain that it was going to be bigger than the internet. it was going to make all of these revolutionary -- and maybe it has maybe it will.

i don't know and now many people are saying the same thing about ai. can you draw any comparisons between the two here in terms of how disruptive and explosive ai will be compared with blockchain, which was so last year, so 2020? >> yeah, i think with blockchain we haven't seen actual impacts, actual use cases from it even though the promise is still there and many people here in silicon valley would tell you that remains intact even with the rise and fall of different cryptocurrencies and blockchain businesses generative ai is far different because this has already been changing the way that we search, the way that we view netflix, the way that our social media is delivered to us. it's already been happening behind the scenes to great effect generative ai of course is now putting artificial intelligence in the hands of consumers to do tasks that previously could only be done by a human so it's doing things and we're seeing that impact day by day. we're seeing business models

rise and fall on the back of it. which is different than blockchain >> absolutely. >> got you >> deirdre, thanks further ahead on the show a drive through here at cnbc headquarters i could make about five drive-thrus i like this may be one of them. show and tell with robert frank alongside the ceo of bentley coming up in a couple of minutes. >> how about cckil in hi-f-ayour new bentley? >> take it for a spin, go pick some up. we're back after this. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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welcome back, everybody. let's get a check on the bond market with yields -- 3.55 on the 10-year i thought i saw, rick what's going on? >> yes yields are definitely starting to move up a bit and bun of the reasons of course, well, let's start out with the very short maturities let's look at a one-month bill one-month bill hovering just ahead of 5.50 on yields. you can see there these are historic moves all the rest of the t bill market is doing well that one of course stands out because many are using it to handicap the debt ceiling issues but one of the main reasons yields are going up is because all the countries around the globe that are experiencing inflation, especially in the last 24 hours the story is how

sticky they appear to be look at a two-day of two-year note yields you can see at 8:30 eastern they shot up a bit retail sales hasn't had a great year but it did rebound a bit and the most recent data pushed yields up a bit. if you look at a two-year going back towards early april, you could clearly see we're moving towards some of the highest yields of the month and one thing you want to pay particularly close attention to is how that 10-year note yield closes right around that 3.57 area many traders think that's a significant technical pivot. kelly, toile toile er back tu >> we are learning what's happening with russian oil experts, and they are up pippa stevens has the details. >> the bottom line is they have remained incredibly resilient hitting 8.3 million barrels per day in april according to data released today by the international energy agency. and not only is that the highest since the invasion last year but

that's actually significantly higher than 2021 when the country averaged 7.7 million barrels -- sorry, 7.5 million barrels in exports per day now, the bulk of this is going to china and india with each country getting more than 2 million barrels per day of russian crude. so that's more than 80% there. and it does really speak to this reorder of global energy flows because india specifically back in 2021 they only got 100,000 barrels per day of russian oil and now they're getting more than 2 million barrels per day so that is finding a buyer and as the iea said this is oftentimes at expense of fellow opec plus members. >> where else is the oil going besides china and india? who else is not participating in the sanctions? >> so turkey is one country. so these are countries that are not abiding by the price caps. however, we do also have to look at the revenue russia is getting. the revenue was down 27% year over year in april and so the thinking is that over time if energy prices stay lo yer with that oil still on the

market that would ultimately hurt russia over the longer term however, right now they're still finding buyers and they still are bringing in money. but it's the longer-term question if prices do stay here that will ultimately cripple their economy or so say the people who are in favor of the sanctions. >> while creating strife within opec pippa, thank you for now pippa stevens. over to contessa brewer now for the cnbc news update konta? >> kelly, thank you. a federal appeals court put a ruling on hold that would strike down a part of the affordable care act it affects preventive care with vaccines and screenings for cancer, diabetes and hiv it's estimated the decision affects 150 million people the biden administration asked for the stay as it appeals the march 30th ruling. the republican-controlled north carolina legislature will vote soon on overriding the governor's veto of a 12-week abortion ban the state senate will consider the override first, and if it passes there it heads to the north carolina house the final decision could come down to just one republican vote north carolina's current cutoff

for abortions is 20 weeks. the 12-week ban of course is less restrictive than the six-week bans other conservative states recently have passed. the 76th edition of the cannes film festival is under way in the french riviera. stars, producers and directors hit the red carpet today to kick off the judging of 21 films competing for the festival's top prize. it comes amid the writers' strike in hollywood with some organizers expressing support for the striking screenwriters back in the united states. kelly, tyler >> contessa, thank you contessa brewer. all right. an important programming note for you. be sure to tune in to david faber's big interview with elon musk it is tonight. it's a special broadcast 6:00 p.m. eastern time that will be faber and musk. you don't want to miss it. up next on the show we will talk with one tesla analyst about what he'd like to hear from the company's ceo tonight. stay with us

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investors eager to hear about product developments and other changes. and of course don't miss david faber's interview with elon musk later today immediately after. that special cnbc presentation will start at 6:00 p.m sharp. george janaricas of cannacord markets joins us he's got a buy rating on tesla and hoping to hear who or what tesla's biggest long-term threat is in that interview george, welcome. good to have you with us what do you think of tesla they've done a lot of price cutting. now they're putting some price increases back in. what has it done to demand and what does the competitive outlook look like in the u.s. particularly for tesla >> well, thanks for having me on with regards to tesla, over the last several months before recently they had famously cut prices over and over again trying to find where demand and supply meet. finally we think they've met

some sort of equilibrium because a couple of weeks ago they decided to start raising prices in geographies across the world. we think that's a pretty good sign as to how their demand is trending currently we seem to have found bottom and we think that probably will be a message that elon musk sends to his investors at the agm later on today >> talk me through what the strategy here is is musk sacrificing margin and profit for share or -- is it that simple? or what? >> we think he has a long-term vision where he's sacrificing near-term profits for long-term profits. we call it the razor razor blade model. he's selling vehicles today, you know, at a low 20s-ish gross margin give or take depending on the quarter. and over time we think that he expects to increase the penetration of his self-driving software today that self-driving software sells for $15,000 per unit

so essentially as he increases the penetration of that software, which we think is about in the high single digits globally, he'll be able to more than double margins on his vehicles and that's something he talked about a lot over the years we're incredibly bullish on the long-term prospects of autonomy. and it's just going to take a while before the software gets to a place where people feel comfortable deploying it and ordering it, paying a hefty sum for it >> it is i confess, i own a tesla and i use part of the autopilot. but the adaptation is going to be tricky, particularly for that step up where it is really full autopilot. what it does now is it keeps you in a lane and you've got to trust that little thing. man, you've got to trust and it's -- there are times when i don't trust it but let me change to another topic. and that is the need for tesla

to come out to refresh its line of cars and to add this truck. do they need to do that urgently >> well, look, the cyber truck will start in small volumes later this year. we expect an update on something regarding the cyber truck at the event tonight. it's an incredibly compelling vehicle. it's controversial, no doubt about it i've been vetoed in my family with getting one my wife won't let us have it because it's not for her but if you see it in person which i did at their recent investor day, it's remarkable. and i suspect that over the next several years they'll sell a lot of those vehicles. we don't know exactly what the pricing is going to be, when they release it to the public soon but suffice to say when you see it in person, when you see what it's capable of, when you experience what it can drive like, it's incredibly compelling and not only that but i think

even more importantly from a volume perspective is the next gen vehicle platform they kind of hinted at this at their recent investor day. it's going to result in a step-down in pricing and when this gets deployed, and we don't know exactly what it's going to look like, is it going to be more enabled for autonomy, structured for autonomy? it's going to really accelerate ev penetration across the world. >> george, quickly why do you think musk is giving such a high-profile interview he's always playing three-dimensional chess. he's been quoted more in press recently what is it all about what would you ask him >> that's a great question i wish i could get into his brain. personally look, i would ask him if i had the opportunity what he thinks tesla's biggest long-term threat is is it traditional auto manufacturers? is it chinese ev oems? is it large cap tech companies that can compete against him in autonomous driving and ai? or maybe it's the lack of available materials to make the

vehicles and batteries he wants to make. i think it's probably chinese ev oems and large cap tech companies and ai i think that would give us some insight into how he thinks about the company in the long term >> thanks for your time today. >> thanks for having me. >> george gianarikas that interview 6:00 p.m. eastern. expedia among the top performers today. shares up about half a pert-cent after an upgrade to buy the agordon hassett. we'll trade some of the big movers of the day in three stock lunch. and bentley motors is coming off its best sales year ever we'll ask the ceo about the strength of the luxury consumer and more maybe we'll take a test drive. this is right outside the building, ty >> yeah. look at that ready for you, kel >> we're back after this we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough.

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welcome back, everybody. we've got a handful of stories we want to get to quickly today. first the "wall street journal" highlighting the disappearing white-collar job economists and corporate executives warning recent layoffs among white-collar industries may never return and advancements in tech and ai may lead to a permanent shift in hiring what is interesting, ty, is we've seen these sort of big tech layoffs at the same time as the rise of ai so are we conflating the two or

is something truly afoot here? >> i think there's going to be a move away from white-collar jobs and away from four-year college degrees and towards jobs where you actually learn how to do something, make something. >> right >> whether it's carpentry or whatever i think that's -- those kinds of skills ai is not going to replace a good carpenter >> and you know what else? if you're a carpenter or a plumber, you don't have to check e-mail at 10:00 p.m. necessarily. maybe if you have your own business if you're a plumber you may get an overall call. but sometimes if you're just working during the day, during the week you're done, you not leave, you can go to the beach or whatever. >> i'm sure ai can make a carpenter a better plumber or a plumber a better plumber but it's not going to replace the carpenter or plumber blackrock calling employees back to the office at least four days a week telling the them the firm has found benefits from working in person. the policy will go into effect on the 11th with the flexibility to work from home one day a week wall street and banking firms have been some of the more aggressive businesses in pushing the return to office but overall that drive has

stalled. about 58% of companies let employees work a portion of their week from home according to scoop technologies. the number of companies that require employees to be in the office full-time has actually declined to 42% from 49% three months ago >> salesforce had said that after they went to that kind of nobody has to be in the office productivity slumped and they're like maybe we need to be in the office, expect more of that. this one's kind of obvious but a record number of people think it's a terrible time to buy a house. nearly 8 in 10 americans according to gallup think it's a bad time it's the highest level since the survey began in 1978 but obviously prices are way high and there's nothing to buy. >> prices are high i why move, why trade a 3% mortgage for i a6% mortgage? as we head to break, cnbc celebrating asian american and pacific islander heritage throughout may hearing stories of business leaders throughout the community. here's ju yi wong, ceo of

olaplux. >> asians in general, we have this attitude of gratitude and that is because we took time, we took energy, we really want to be where we are, and with that said we feel like this is the right moment for us to not only see ourselves as value add but also help others in that space. push yourself as hard as you can and as far as you can because regrets in life are never about failures but about things you wanted to do and never did you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants.

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it is time for three stock lunch. first of all, home depot shares down just over 1%. really minor decline after the company reported a slowdown in sales in their first quarter home depot beat on eps estimates, but it's the first time the brand posted an earnings decline in more than three years. here with our trade scott nations, president of nations indexes. what is your take, scott, on home depot, which you call the most important retailer in the market >> it is but unfortunately, tyler, it's a hold to a sell, somewhere in the middle of that

the results and the guidance both disappointed. the decline in revenue, they ascribed to falling lumber prices lumber prices over the past 52 weeks down 56% but he this can't really get that to translate into really bigger increases in eps. part of the problem is the trend is the smaller project so i guess despite what their tag line says doors aren't getting more, they're just getting a little bit less. forward e.p. of 18 indicates it's not a bargain of any measure. again, it's a hold to a sell >> a hold to a sell. what about capital one is this a diamond in the rough the shares are a little off their highs, up 3% after berkshire hathaway took a new stake last month >> yeah, this is a buy, and it's not just because we're going to tag along with berkshire hathaway it's a lucrative business. the stock is down 20% over the past three months. so we can get to buy it at a relative bargain i imagine that's one of the things berk slir was looking at.

they are beating the bank turmoil, but that's one of the reasons the stock got punished, so we can take advantage of that forward p.e. is only 6.8 it's less than 7 and price to cash flow is less than three so you can understand why berkshire hathaway loves it. and that just makes a whol at a bargain it's a buy. >> let's move onto expedia the share seeing a nearly 3% boost after gordon haskett they believe the stock has been overlooked what do you think of expedia >> yeah, this is a buy as well travel is going to be ferocious, and they're going to hit on all cylinders. it's down 19% over the last three months 60% of the last 15 months, but it's been overlooked forward pe of less than ten. earnings growth over the next three years is expected to be really impressive. so expedia is a buy. >> all right, scott.

thank you very much. we appreciate it scott nations, thanks. >> thank you >> less than ten times forward earnings let's get a check, shall we? nasdaq hanging onto a 22-point gain the dow is down 238, and negative for the year. if you have ever wanted to take a ride in a bentley, this is your chance. come along with us, won't you? right after this break "power lunch" is back in two lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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

welcome back if you can hear me, it's an amazing thing. >> we've broken out. >> the ceo of bentley have put up the best numbers in the 103-year history of the company. >> correct. >> it's still going strong my wife just came back from a few days in naples, florida. in some neighborhoods they won't let you in unless you have that car behind you. >> sounds like a good ninght. >> why don't you carry on? >> you guys have just had incredible sales we're talking a lot about the consumer right now are they strong or weak? your buyers, are they still buying or do you see any change in how they're spending or whether they're ordering your cars right now >> the ordering take right now in the u.s. is like most of our markets at the moment. it's very strong we've seen some changes, but

more on the secondary level. instead of being crazy and above retail like they were, they're norma normalizing, but the demand is strong still. >> your volume was up about 4%, but your profits were up 82% which means you're making so much more per car. >> yep >> how are you increasing your margins per car? is it just price increases? >> no. there's about a 40% difference between the price of one of our cars four years ago and today. only about 9% of that is pricing. the rest is content. our customers are choosing 1 of the 62 covers, the 43 leathers that we offer, and lots of options. it's a total shift in the configuration of the vehicle they're buying this model rather than the base version. >> they're doing their custom stitching and they want paint colors their own this car is one of the last w-12s. that's a 12-cylinder engine. you're going to all ev in 2030 is that what your customers

want >> they want the roar. >> we'll see if we can make a battery roar there's two different factors. we talk to our customers we haven't made this decision without talking to customers first. five years ago, only 14% of the customers said they would consider a bentley electric in the next five years. two years ago, it was 62% of bentley owners 62, and we get the next survey this year. we think it will be higher in the 70%-plus >> there aren't many of these cylinders to sell. how many more orders will you take for this before they're all gone >> so globally, we launch this model 20 years ago, the gt, with a 12-cylinder engine we finished building 12 cylinders in spring next year. there's about 1,500 12-cylinders worldwide. they're already almost sold, and it will be the end of a great era. >> get it soon. >> what is your -- is this your biggest seller, the suv?

>> yes, it is. >> i remember when you came out with it. i had the pleasure of driving it, and one of the security gentlemen up there was asleep when i came back in. i couldn't get back in anyhow, that's your biggest seller. >> it is 45% of sales. >> what would this car retail for? >> around $300,000 to $400,000, depending on specifications. >> what you loaded it up with. >> the ferraris spinout from fiat has been one of the most successful spinouts. would that be a bentley template to follow from volkswagen? >> also the most successful ipo of the year. obviously did a lot of good for the company. it hasn't changed the value of the group share so much, but for being fantastic. there's no plans for separation of the group we get huge benefits in being one conglomerate. >> you're a win dow of wealth around the world

what are you seeing in china we're seeing some suggestions. it's a little more subdued than some people expected. >> for us, so far, so good if we look at before covid, we were running at about 150 orders a month. after the first wave of covid, 300 orders a month, and the last couple of months, it's been higher than that it went down, but it bounced back massively this year today is phenomenal for us. >> before you move sort of all electric in 2030, is there a transition engine style that you are going to use like a plug-in hybrid or what a >> yeah, so we will. we'll have a power train that will have a lot more power than today's cars that will be in the next two to four years when that happens, and successively, we'll launch one car in '26, and one every year until 2030, and then we're fully electric. >> you can make your cars carbon-neutral can you make your factories? >> already has been since 2018

also in europe and the uk. we'll be globally carbon-neutral retailers by the end of '24. >> can we take it to chick-fil-a? >> let's do it. >> are you going to get in the car and go >> i have to move out of the way then >> i'm going i'm coming >> did we say something wrong? we don't get to drive it. >> i think the color so attractive >> the color is awesome. it's really pretty i've seen a lot of these on the road how many of these do you sell a year, this particular model. >> so of the gt convertible, it's about 2,000 cars a year >> do you think robert will know how to start it? we'll find out in a minute listen to that >> watch your toes as well >> as trace atkins since "you're going to miss this." you're going to miss this sound. all right. be good. have fun, kids bring it back by midnight. >> okay. easy oh my god. >> whoa, man that is awesome stuff right there. adrian, it's been great having you with us.

continued good luck with bentley, the brand >> brthank you. >> good fortune as many of your customers have already had that'll do it for "power lunch." they are out of here "closing bell" is coming up right about now. we'll see you tomorrow welcome to "closing bell." i'm scott wapner live from post nine at the new york stock exchange we begin with breaking news. all eyes on the white house right now as the president meets with congressional leaders to try and hammer out a debt ceiling deal our amon javers is in washington, d.c. >> they have left the building so so speak at the other end of pennsylvania avenue. we're going to wait to see of their arrival, and what happens in this high-stakes meeting today at the white