we have to wait until he gets back from japan at the g7. >> next week we will get durables and personal spending we'll try to put some macro data -- >> a lot of retail earnings as well a lot of folks are worried about the retail earnings after foot locker because we heard from some of the stalwarts who have consumer exposure like a target and walmart this week. what happens next week >> let's get to the judge. appreciate it, carl. thank you. welcome to "the halftime report." i'm scott wapner front and center this hour this midday move in stocks as the debt ceiling take a turn. we're watching that and the fed chair who just finished speaking debating what all of it means to the market and your money. joining me bryn talkington, steve wise, bill baruch and steve liesman also standing by for what mr. powell, the chairman of the fed had to say so, bryn, we're watching 4200 very closely on the s&p 500, which we gave up on those

headlines about the debt ceiling. we have cnn reporting that treasury secretary yellen telling bank ceos more mergers may be necessary we're trying to digest all of this in the context of what's been a pretty good week for the markets. >> yeah, well, i think all eyes are not on the s&p but on the nasdaq the further away you are from ai and ai derivatives, the worse your performance is. the nasdaq just broke out the past couple of days. it's august 2022 levels. it has broken above but is extremely overbought we've talked about this a lot, the extreme narrowness of the market i think some of it's warranted i do believe that the seismic ai shift is real. we all see it. unlike cryptocurrency which we couldn't really understand, we see this, know how to use it it will generate real efficiencies that being said i think it's too

fast and so i think for my positions i would like to put on some calls, some hedges especially in these names that have run so fast, so hard, and i think that the cherry on the sundae will be next week when nvidia comes out collectively putting this together, sprinkle in a debt ceiling hike, i'm not surprised the market will go into friday weaker just because of the huge run we've had on top of, once again, the nonsense of politics in washington as usual >> we weren't weaker, steve weiss. apple, alphabet, meta hitting new 52-week highs. stocks are coming off their highest close of the year. we're nicely above 4200 before we got the headlines from kayla about the debt ceiling talks breaking off for the moment. how do we see this on a friday morning or midafternoon? >> i think bryn puts it

perfectly is that if you're not in the nasdaq, you're not in those few stocks, then your performance is not doing particularly well. the nasdaq is coming off a month of great performance, and it's been narrow. so selfishly i would like to see us go right up to the wire on the debt talks, the debt limit talks, because then the market will really trade down and i'll have a chance to buy more stocks perhaps i've missed. i don't think we're going to default. you take the interview that was just with the ceo of foot locker, and you see it's two worlds the luxury area continues to do well that's an impregnable cat gore campaign of consumer, but yet everything underneath including not just those that live paycheck to paycheck, which is most of the country, but the middle class is feeling the pressure we've heard that constantly. we looked at the deere earnings. the stock traded up 4%, and then it went negative as they talked

about the back half of the quarter down, down next quarter for earnings, and then believing we're going to be better and deere is well positioned because they have lots of new products, re-inventing farmness. the weakness is there. it's been delayed a little bit because we've had free money for so long. i'm more on the fence talking to people, some of the same people you talked to that are there that were not just steve cohen, who you had mentioned was on the show and his comments, but i think the data everyone is going for, is my weight -- should i be impatient? should i throw the towel in on bearishness and say this is going to be -- this is another bull market, or is the delay and the impact of the fed just extended versus prior cycles i don't know right now, scott. so i'll continue to pick up equities where i'm getting paid

to pick them up, meaning they're so dislocated. deere may, in fact, be one of those if it comes down some more, even right here. i sold the stock at 410. it was a great sale. i sold microsoft if you can tell there's some confusion, there is in my voice. i'd like to have an easy decision put in front of me which is real fear as i started over the debt ceiling and then i know i can get in. right now it's six, one half dozen the other. >> if not for the debt ceiling talk headlines, i wonder what the market would be doing based on what the fed chair had to say because he certainly seemed to not be on the same page necessarily with the bullards or logans from the world we heard from earlier this week

if anything he leaned, i feel, a little bit dovish. >> i like your analysis, scott, because i was just trying to bear down into the tick of the market to see if the downdraft came as a result of the walkout on the debt talks or if it came in response to what powell said. powell started off a little bit on the hawkish side mentioning inflation. he kind of cured that later on and he took a firm stance in the middle, if you will. i'll give you some of the headlines i heard from powell where he said tighter credit conditions could ease the pressure to raise rates. in the context by what's been said about other fed officials was a direct shot at them in a more sort of dovish solve to the market than what they've been hearing, the stance of policy is restrictive and we face uncertainty of the lagged effect of tightening and the risk of

doing too much or too little are becoming more balanced you'll remember, scott, that was something that had not been the case for many, many months the odds of a june rate hike which had become elevated as a result of comments made by logan, bullard the week before had gone up as high as 40% where you might have argued the pause is in peril and now you can say the pause is back in play. right now it's down to 14% and i just want to emphasize powell at that point was reading from what seemed to be prepared remarks. what he said he meant to say and it sounded to me like it was a direct kind of redirect, scott, of the market back into the middle, bake in a june rate hike >> reading from prepared text rather than off the cuff bill baruch, i wonder how you're

putting this into context as algos react to headlines about debt ceiling algos don't necessarily listen to the nuance of a fed chair who may not be in step-by-step agreement of fed speakers earlier in the week. >> the fed has to be a surgeon here, and that's really what you're saying. the headline reaction more on the debt ceiling as you and steve liesman acknowledge, but we've heard from the logans, we've heard from bullards that they are more hawkish, this jekyll and hyde narrative. they can't let the algos, the managers lean to one side on the position because of the market's reaction function, they call it. very careful here to talk about it maybe they pause i don't think they hike although earlier in the week the odds were a little too low. getting up to 20% to 30%, become more balanced and put the market on its back foot, but you can't ignore what's going on within

the market itself, and bryn acknowledged that. it's the nasdaq, tech is running. we've seen the narrative shift away from the fed more so and there's other tail winds that are there. earnings have been solid you look out at some of the tech companies, they're being priced in 2024. it's not about right here right now. the capitulation took place last year, we're in a bull market and i penned a note to clients to start the month. buy in may, the bull market is here to stay that's what you have to look at. at the end of the day the fed's goal was to bring down inflation. and the cleveland fed inflation now is 4.16 right now. we're coming down and it's going to improve it will be a three handle through the summer >> steve liesman, do any of these remarks today around credit issues and the bank and the outlook for where rates may have to go or not, the fact that the fed chair said what he did today about the policy rate might not having to rise as much because of credit issues around

the banks, is he in agreement or disagreement with some of the other members of the fed who may not think that those credit issues are as serious as perhaps he does, even incrementally more so >> i would say he is at least temporarily in disagreement. i think he is still concerned about it he's still worried this ends up being, you know -- lorie logan used the phrase nonlinear. that means it goes off the chart. it goes higher in a way you cannot predict it and that's always a concern when it comes to credit issues, scott. you can raise rates by -- say were you to raise the interest rate on a loan from 6% to 7% then you would have a predictable decline in lending when it goes nonlinear, lending could crash in the result of higher credit standards and stuff like that. that's what policymakers worry about. powell seems to be more concerned about that whereas

bullard seemed to kind of kiss it off the other day where he said it's been overstated, and that the bigger concern is the decline in yields which ends up working the other way and easing financial conditions for the fed. so powell is still in that camp and remains to be convinced. let me emphasize, scott, this doesn't mean powell would necessarily balk at a rate hike in june if the data were to accelerate again but if you get that cooperation that was just being discussed from the cpi numbers and the inflation numbers coming up, then pause will be back in play. >> i mean, maybe it just means the meeting will be more live, so to speak, than some had expected a couple weeks ago. steve, thank you steve liesman breaking all of it down >> sure. >> doing what he does best, reading between the lines really of what all of this means for policymaking going forward from the fed. but i want to, steve, get back to this issue of what tech has done the nasdaq is up four weeks in a row. a new all-time high.

and what we're supposed to do with that in the context of the flow show, talking about ai being a, quote, baby bubble, wells fargo's chris harvey reminds us of '99-2000, the way ai has fueled these stocks, but growth has pushed past value from such a tremendous degree of late >> yeah, you know, i agree that it's a bubble in terms of what it's done to a lot of stocks but i also agree that it's here to stay, that i do buy into it being an industrial revolution, the fifth one. so i think we want to be in position, look, i didn't have time to talk to patti before the show, our esteemed supervisor and producer, but i did nibble on microsoft and the reason i did microsoft, i hate the multiple, right, but i want to get involved and it's very, very small. but i'm comfortable owning it.

when i buy stocks, i look for perennial compounders rather than a moment in time. so, look, i sort of hope too early in terms of an impending market correction and i could really size up on, horrible zigs selling at 250 after i owned it for so long. ai is here to stay however, i meet with so many private companies and all of a sudden everybody has an ai approach it's not going to work for all of them. as i said months ago, 90% of companies say ai have nothing to do with ai >> that's why the pure players are the ones who are outdistancing themselves, at least initially -- >> like an nvidia. >> -- i don't want to say from the pretenders but the ones trying to figure out any way to mention ai being a part of their business as a stimulator for their growth >> exactly and i can't tell you in how many meetings i've been in where

people talk about nvidia they don't talk about anybody else except nvidia and their chips. so i keep asking myself, why shouldn't i own it i have discipline in terms of what i'm willing to play i'm stretching that i just can't bring myself -- you don't know how much i'm hoping, no offense, bryn, no offense to anybody else who owns it, hoping that they really miss the quarter, that they really miss it. >> what are the chances of that happening? >> not a lot not a lot. you'll see it in their data center business. you'll see it in their other business, their gaming business, and other areas. you won't see it in the chips. but the chips are not the biggest part of the business, ai chips. that's my hope i could be wrong i'm not going to buy if they don't miss >> this doesn't justify whether their valuation, talking about nvidia, course, at the moment. it's doubled along with meta its valuation is the highest of this cord that we're talking about. is it justified or not, for you

to say not me. >> it has run a lot. and i've been on the show the last couple of months, it's been our largest position i've trimmed it. you have to manage that risk here is the thing. i think they could raise guidance now what is the total -- what's the total address of market cap for ai some say $100 billion. they are calling for $300 billion. what if it's a trillion and continues to expand to all the companies from industrials to a mcdonald's and everybody starts to incorporate into software to the user it's going to be there if nvidia is by far the leader, their software suite knocks everything else out of the water. they, i think, will raise guidance i think there will be a lot of positive tail winds behind the report >> bryn, what about you? you own it >> i think we all have to understand, also, these other big companies have all been working on their own chips i know microsoft and amazon are

absolutely working on their ai chips. and so i think that while nvidia is clearly in the pole position, i do think that microsoft is also the other derivative play when i think through which companies are actually going to be able to monetize this, when i look at google, google is an advertising company. please don't forget that to me, ultimately, embedding their bard in their system, in their ecosystem would make me want to search less because i can just go straight to the answer i'm sure they'll figure out how to monetize it but, to me, it's not so clear with microsoft, it's crystal clear because with co-pilot, which they're going to launch inside of all of their office suite inside of aws -- inside of azure, it's going to make them so much more efficient and as an outlook user, we're going to see that in our daily lives. i think even though microsoft has had a really nice run this

year, i think the ability to turn that into profits for microsoft i think is a very high probability, and i think they will turn that on sooner than later. so i would still stay long microsoft. although it's run, i think it's the early innings of them being able to monetize it especially when they come out with their own chips which will be an affront to nvidia at some point. >> people tried to write off alphabet i think rather quickly. they took comments from the ceo on "60 minutes" along with the announcement from microsoft about chatgpt to assume, or at least to make the investable leap that somehow that alphabet missed the boat and that they were going to have to play such a tough game of catch-up when alphabet's stock year to date has outpaced microsoft it's up 39%. they've all had great years thus far but it's not like alphabet

hasn't been rewarded for any of this at all. >> no, no, that's true part was it's so oversold and has the lowest multiple of all of them. let me go there and them got there in a hurry there's some good news on alphabet today which is that samsung is not going to replace them, not considering replacing them with bing anymore, so that's not actually in the stock price today but think about that that was a real threat to follow up with what bryn said, look, exactly, i don't think being a trillion dollar mark for ai, which could be -- who cares if it's $300 billion or a trillion -- you're dealing with very well-subsidized competitors that it's in their interest not to see the market entirely to nvidia and at 70 times it's like they're the only player in the market in terms of microsoft, microsoft, one of the things i

love about it, it's recurring revenue. they have their subscription model that was put in after balmer left. even more so think about that. they can go out by putting ai, chatgpt in there, their official partner, and re-create their whole office suite so people have to re-up. that's why i love that and it deserves the multiple it has now and nvidia, i don't believe, will keep their multiple going forward. so we're in the early, early stages nobody will say, okay, we're going to allow nvidia to continue to charge premium pricing. it's up to us to create more capacity so that pricing comes down and that will impact their year >> do you feel like, bill, we're in any kind of -- wolf technicals say this is the final stage of a blowoff top in the ndx, the nasdaq 100, which i mentioned is up four weeks in a row. and the stocks within it have been, especially if you're

related to ai, you've been off to the races >> i think this is the middle innings of the ai push i think we've had -- >> are you talking about stock performance? >> yes, stock performance and where we can go from here. it doesn't mean nvidia will be the leader going forward i think from a stock performance standpoint -- >> how can we be -- middle innings -- we just started getting our arms around this whole thing five, six months ago. >> they've only addressed $20 billion total market of ai there's a lot of room to grow here you're now seeing a lot of the other stocks start to break out of technical patterns. also, it's not because of technicals, it's because of the tail wind. i'm talking about ai in general right now, and i think we're in the middle innings there >> early innings >> middle -- >> is what i would argue with you. how can we be in the middle innings? we just started. >> middle innings is the price

of where the stocks can go from here if you take a step back, it's not just the ai tail winds you look back to where the market was, last year, the capitulation, the negativity, the managers positioned offsides that now some have to chase, and i think there's money that can still come into the market and there's very, very constructive -- i think the fundamentals right now -- although you can say a slowing consumer, can continue to be a tail wind. i think there's a lot of reasons to look for this market and grach tate higher. it doesn't mean we can't have a pullback but this is breaking the range and there's a lot of roof >> what, if anything, breaks these stocks is it more fed tightening than the market expects that's what wells fargo is talking about, you look at '99 into 2000 what breaks that, what broke it, you get fed tightening, and obviously rates go up and the economy cracks and i don't care really where you are in the market, the market goes down.

>> right what breaks is what broke deere up 4% marginally down or flat which is, yeah, we put up a great quarter, a tremendous quarter, but we're lowering expectations for the next quarter and we're optimistic about the rest of the year >> you're telling me that a microsoft or an apple or nvidia or meta, we see softening demand how? >> let me parse a little bit about what you said. the market has broken for the majority of stocks, right? they're still down -- half are down year to date, so you're talking about this narrow advance. so the narrow advance has defied the market talk about where the market is, it's narrow advance. i don't see anything breaking them they've reported earnings. nobody is going to give up on them we have this whole new era in generational investor that will stay saying i'm retiring in 35 years. what's the difference if they go down 10%, 20%, 30%

they're going to recover as they did from the pandemic, from the great financial crisis, et cetera i think those are safe because that's what this generation of investors understands and gravitates to. they don't understand the deeres and the others >> let's go through some moves you have made, microsoft you bought broadcom, bill? >> yes it's breaking out. they have a 7% free cash flow yield. they have a multiple under 20. and there was something very quietly took place on wednesday evening was synopsis reported earnings now synopsis does the electronic chip designer, design automation i think that was a big tail wind to a lot of the chips, the japanese news and micron as well, but there is so much good news surrounding the semiconductor space and it was a catalyst for other semiconductors to now have that tail wind and broadcom is one of them >> bryn, you bought more tesla why did you do that? >> yes

so you know i like to play tesla. i like to hedge the position the stock has been basing out and bouncing around the 170s and so, to me, it looked like it was going to start to break out so i bought it at 172 but i sold the september 190 calls. and i got $14. that's an 8% yield for four months out so my total return, if i'm capped out, if it gets called away, is 20% in four months. but if i'm wrong, let's say tesla is weak. i have that $14 that i just collected, and so i think it's a really nice entry point where i can get some upside and i used the source of funds was paypal which i sold because i don't think it will participate if this market continues to rise. let's step away and take our first break. up next, good-bye gorman morgan stanley ceo, jim gorman, announcing his plans to step down we'll lay out what's next for e g nkndtsnvtothbiba a i iesrs you're ready for anything.

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welcome back big news in banking today, morgan stanley ceo james gorman announcing plans to step down over the next 12 months. he'll assume the role of executive chairman our leslie picker joins us now with more on this and how we

should think about this news today and what he's going to leave behind as ceo, leslie. yeah, his legacy is a pretty instrumental one in kind of changing the strategic makeup of morgan stanley he oversaw several mergers, which increased the prominence of wealth management, of investment management, outperformed his peers over the time frame, over the 13 years that he was ceo, and this 12-month time frame has been pretty well telegraphed that he did have plans to step down. i think it was last year where he said he would step down within the next five years or so, and those who were in contention for that top spot also pretty well telegraphed over the past year or so and so i think from here it really just now centers on this idea of who it will be and when. he turns 65 in july, but we should have some sense over the

next 12 months as he mentioned >> seeing some of the chatter, the wall back at our headquarters, leslie, and who might be, you know, the favorite, if you will. one thing that's so interesting is gorman really leaned in to the wealth management side of morgan stanley, and the results from a share price are noticeable so, too, are the way that other firms are reacting to their own businesses because they've seen the success road as it relates to wealth management that james gorman drove >> one of the analysts said wealth management comprises about two-thirds of morgan stand lip's market cap at that time. they've driven higher returns as a result which is building up this business. you have an andy saperstein who runs wealth, is one of the three

gentlemen who are in contention for the ceo spot wells fargo thinks as a result of this he could be the leading candidate given just the growth of wealth, but then you have kbw who says that ted pick might be a more likely choice because he runs the institutional group which is sales and trading, investment banking and so forth and is credited with turning around their business and has seen more that turnaround candidate in the sales and trading, investment banking sild of things. >> leslie, good stuff. that's leslie picker joining us. we'll continue to game it out, no doubt, over the months ahead, of course. of the three on the show today you own morgan stanley what do you think? >> it's our financial exposure, the regional banks end of last year, the lending side of it i like -- this is very prepared, like the green bay packers handing the reins to aaron rodgers from brett favre

pick or saperstein will likely be one of the two. do they take saperstein in order to maybe spread him thin maybe pick is the leading candidate. >> do you care either way as a shareholder? >> i don't i like the direction of the company. gorman has put them 13 years at the helm in the right spot they've separated from goldman sachs and are a leader in the space. >> what do you think of this one? >> first of all, how do you not love a guy who says he's not going out like logan roy from "succession" a great quote. he's done an amazing job if you remember, and i remember because i was one of the doubters early on, can he do this can he transition the company? and he did it phenomenally well. it's a stock i look at all three candidates i don't know them personally i do know them from other people they are very highly qualified either can do it saperstein given the direction he took the company may be the lead in it because it's a wealth management business, but

banking, also. my touch points are greatest with goldman that's why i love it i've never been disappointed so that's what i'll stay with >> gorman was probably throwing darts at your picture in his office in the early days i remember that. >> yeah. >> i remember that i really, and he, the lean-in on wealth management was a game changer for them and certainly from a stock performance standpoint >> he executed, and i turned early on it, but just phenomenal, phenomenal execution, just what a job think about the culture he had to change with morgan stanley and he successfully did it and think about, you're managing high-performing superstars who are highly independent and he got them in line to build a great business coming up, our "call of the day. whh it0% this year, bryn owns icmeans we'll debate it next

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welcome back to "the halftime report. i'm contessa brewer with your cnbc news update a top chinese commerce official will travel to the u.s. to participate in a rare trade talks. the u.s. and china have seldom held meetings in recent years but, of course, they're important economic partners and bilateral trade between the two superpowers hit a historic high of $760 billion last year. hyundai and kia have agreed to pay $200 million to settle a consumer class action lawsuit following a tiktok challenge that exposed just how vulnerable those cars are to being stolen the settlement covers about 9 million u.s. owners and the majority of the money, as much as $145 million, will go to people whose cars were actually stolen or damaged in attempted theft. target has recalled millions of candles because of a burn and cut risk the recall covers nearly 9 million glass jar candles sold in multiple sizes and in various

scents we'll show you the logo and not the candle target received 137 reports of the jars breaking or cracking during use and apparently six people got injured all right, that's the news, scott. >> okay, contessa, thank you to our call of the day devon energy an analyst says the stock is underappreciating some of the tail winds at the company. bryn, you own devon, right >> i sure do so i think it was a great report i think the backdrop -- well, the report tried to discern the difference that there's going to be security selection not just broad movement within the space which i agree. i think the overall, overarching hang on these names is going into late cycle. people are worried about a recession. wti is in the 70s. and so what do you do? you sell energy. that playbook is like playing out kind of textbook what investors are missing, though, especially in the next few months as inflation comes

down, the soft landing drum beats get louder, one area that's missed price is oil devon has excellent leadership they have a great bench. their earnings was may 8th they increased their share buyback by 50% they continue to pay that fixed variable i do think some investors were disappointed they did more buybacks versus pushing that through to shareholders, but the way i would have been playing it, as i continue to sell calls, so even though i'm down on the name year to date, i've earned 9% in call premium so for investors wanting to play it right now, i think a good trade would be buy devon it's around 49 you could sell the september 55 calls, collect about $2 of premium, and so that gives you between capital appreciation, a dividend payment and option, around 16% upside. if it goes lower, once agae cal

and make money the energy sector as a whole is the one misplaced area in the market >> others think that, too, broadly speaking energy. mark newton of fundstrat was on "closing bell" with me and made the argument it's ready for a breakout why no devon and what about the proposed breakout in this space? >> i love newton's work and i think he's right we've had capitulation in the market now it's inviting people to come back in. look at the revenue growth down year over year like chevron, and looking farther out. the iaea came out and said demand would outstrip supply by 2 million barrels per day. the opec plus is fighting that they want to keep oil buoyant. there is the question of china coming back online and a lot of

pessimism on china we only need less growth the second half of the year to have an impact. pioneer is my play, they have less investment to make because of where they are right now. coming up, we'll do our "chart of the day. deere giving back earnings a reaction to a very interesting, and there it is, intraday movement in t sckheto lower by 2%. m barbara and i'm fm st. joseph, michigan. i'm a retired school librarian. i'm also a library board trustee, a mother of two, and a grandmother of two. basically, i thought that my memory wasn't as good as it had been. i needed all the help i could get. i saw the commercials for prevagen. i started taking it. and it helped! i noticed my memory was better. there was definite improvement. i've been taking prevagen for a little over five years. prevagen. at stores everywhere without a prescription.

(fisher investments) it's easy to think that all money managers are pretty much the same,n for a little over five years. but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when our clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different.

let's do our "chart of the day. it's deere giving up early gaga seema mody >> we saw the stocks pop but the minute executives referenced higher than expected inventory levels we did see shares start to decline ubs analyst steven fisher says those comments were interpreted as cautious because deere has previously said that without any qualifiers they want to rebuild inventory levels

deere did add demand remains strong no signs of a pullback, but the other concern is that prices of large equipment is expected to moderate in the long term. scott? >> thanks for the setup, seema mody farmer jim lebenthal joins us now on the phone i gather you are feeling pretty good, four hours ago, maybe not so much now. >> scott, it's good to be on with you let's talk deere short term and long term. short term today's movement, i can't explain it seema did a very good job because it did happen as soon as comments were made on the conference call. i have to say that's irrelevant to what the long-term thesis is here, which is there will be geographical changes in large size and where plantings are made around the globe, it will require new ag equipment

that will have precipitation farming capabilities revenue the long-term aspect of the company is very much intact and frankly going back to the short term this is a blow-out earnings number they raise guidance above where estimates are right now. so you'll see estimates go up as they have all year fundamentally this is in extraordinarily good shape one more thing, scott this is reminiscent of you and i talking about cisco yesterday. 28 hours ago cisco systems after its earnings report was 8% lower than it is right now what i'm trying to drive at here, the short term noise is not something to pay attention to when the fundamentals are as intact as they are at deere. >> i feel like that's saying in the short term stocks go up so who cares about the near term and the fundamental issues that may be taking place in the

economy as it relates to demand and where pricing was able to go at one point, which meant margins were able to be higher and that evaporated. that's real. >> i disagree, scott that's why they raised their guidance this year above where estimates are, above where estimates are. if deere was willing to be traded at 11 1/2 times this year's earnings last night after the report today, that's a lower multiple the stock should be higher you're seeing short-term noise >> okay. let's take today out of it the stock is down 2% it's down 14% year to date if the story is so great, why is the stock so bad >> because every stock except for the seven faang names are down that's no reflection on deere's

fundamentals at all this is a market where the breadth has narrowed incredibly. everything is thrown into nvidia, microsoft, apple, et cetera when it turns, people will look at companies where the fundamentals are strongly intact as at deere and will say this is a holding for the long run i don't think, scott, this is something -- let me be clear, you don't have to hold your nose to buy or hold deere here. this company is great. >> i hear you. i appreciate you calling in, too. it's been a really interesting session for it and i'm sure you had to sort of adjust the way you might be thinking about it from what looked great in the morning and what's not so great at 12:47 on the east coast thank you. have a good weekend. >> scott, just think about what happened with cisco in the last 28 hours i'll close there >> good stuff. jim, thanks. santoli is next. ♪

♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ lee, thanks so much for joining us we're talking about the fund-raising landscape >> deals are still getting done but venture capitalists are being more selective in deploying capital. more focus on profitability. so when you skew that to profitability versus just growth

at all costs you will see fewer deals more investor friendly, so just a lot more conservative approach right now that we're seeing >> how should mid-sized companies adapt to fundraising >> one is a realization that it's tougher is it clear what is the value proposition? do you have a strong customer ba base and can you be capital efficient and at the same time be profitable? >> so how can companies be more capital efficient? >> one is, first of all, i would implement stronger cash management practices including maybe a good spending policy to make sure everyone around the business is really cash conscious and as a leader think cash, cash, and are you focused and do you have control of visibility over cash flow as well as the forecasting, avoid surprises. >> lee, thanks for sharing your expertise. (swords clashing) -had enough? -no... arthritis.

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incentives are there to kind of sound like there's nothing going to happen, even if it's going to happen but you also have, you know, coming into today, the leadership part of this market, the nasdaq 100, running really hot. so overbought. s&p exactly at the top end of the range. expiration friday. everything coming together the yoeld's waking up for hey, isn't this a logical place to pause? to me, it's about how we absorb the buffeting from the headlines that's more interesting than the fact that it looked like you took some of the edge off the buying in the morning. >> so a rather muted pause, too. it's not some, you know, great pullback who knows, there could be any headline that gets you over the 4200 goal line >> it could be i'm not convinced that's necessarily -- you declare victory if that happens. >> i'm not saying you declare victory any way. >> there's no all clears in this business i do think it's interesting that we traded down seemingly also on powell saying rates might not have to go as high because we

still might have some credit issues if he's not going to at least listen to the message that there was a little more tightening of credit in that measure and at least give lip service it to, i don't think there's that much surprise in that so you still have a pause in play, even if it's a live meeting in june. >> i don't know. they don't apparently listen to their own staff who was staying there's going to be a rerecessi. mike santoli joining us again at 4:00 on "closing bell. "falras"s xtin tde ine 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— from hvacs to elevators to lights. what if we use ai-driven insights

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big "closing bell" coming up on this friday at 3:00 eastern time the former vice chair joins me what does he think about what fed chair powell said? we'll get the latest takes on the market as we're seeing if we can get that close above 4200. that will be interesting so we'll have a good show for you. you have a couple moves we didn't get to. talk to me >> yeah. so after the earnings early this month, the stock has sold off hard after concerns around the bio-similars around humara that is well priced into the name here. so we look at the chart technically, because i want to match technicals with fundamentals, 143, 145, is really strong support.

so i took the opportunity to add more i think what investors need to realize is that the biosimilars around humira is priced in they have huge drugs coming up, and they have their esthetics business so i think you have a company that's oversold, great fundamentals, solid technicals 7.6% free cash yield >> you sold bjs, as well >> i used that as a source of funds. >> what is your final trade? >> xop go long energy >> what do you got >> synopsis. >> stock is not doing too much on that. microsoft? >> yeah, i just bought it. i gave all the reasons that's the freshest trade i have >> so we'll go into the weekend a little uncertain where the

debt ceiling talks go, whether this is simply posturing we'll see what other headlines may come watching that 4200 level the stock is at the highest close of the year yesterday. can we get back to that level over the next few hours? we'll see. "the exchange" is now. ♪ ♪ welcome to "the exchange." here is what is ahead. existential threat and a big opportunity all at once that's how one of our guests describes ai's impact on the top companies. he brings two names that he sees getting it right and one most at risk plus, tech has been on a tear a handful of mega cap names dropping up the whole market but for how much longer? it is time to trim and markets are lower on reports that debt ceiling talks have stalled. this as joe biden attends the g7