people look at some of the inputs. we'll see whether cpi is as friendly tomorrow as some of the bulls hope it's going to be. >> you have cpi tomorrow, you also have some more bank regulators on the hill talking about the potential rollback on basel. let's get to post 9 and the judge. carl, thanks so much. welcome to "the halftime report." i'm scott wapner. front and center this hour, stocks in search of new highs. another key inflation read hitting the tape today. the investment committee with me and, of course, they are making plenty of moves in the market. we will document all of those. joining me josh brown, amy raskin, sarat sethi and jim lebenthal. moving around, the dow is a touch negative. we need about 30 points or so for the new record high. 5254 is the nem to keep your eye on and we'll get to the markets. we do want to get to a number of moves we have today because

we're pretty active in the investment committee. amy raskin, i start with you. you sold nike. >> yep. >> seems to me from the notes here you had it. >> we trimmed half our position, we spoke about a couple months ago, but we're done. the company is just not executing as well as it should. the brand is still great. we could come back to it at some point, but they're not executing right now. china is a risk for them, and, so, we're out of the position. >> the stock is down 14% year to date, down more than 20% over a year. they certainly have had what i think people would suggest is an innovation slowdown. >> yep. >> the company sort of acknowledged that. they blamed remote work. >> which was terrible. >> -- for that. >> their competitors somehow figured it out. >> hoka, on, new balance -- can you sort of go down the list -- >> lulu -- >> -- are rising competitors. they're all sort of part of the sell pie?

>> all part of the sell pie. i really did not like the explanation we couldn't innovate over zoom. everybody else sort of figured it out. they just made a bunch of missteps, and hopefully they'll come back from it, but i see no signs of that right now. >> okay. i want to get a comment, josh, from you on this. this is obviously one of those, josh, these blue chip brands that the stock has done terribly. i know you don't own it, but i'm sure you have thoughts regarding amy getting fed up and just saying, enough is enough. >> i feel like there are a lot of stocks right now just like this in the market, and we're seeing this happen one by one. it actually really reminds me of starbucks, and i was talking to someone who was pulling the trigger on starbucks because it's a great brand not executing, just like this situation. and my comment was like, look, there have been five turnarounds-ish that i can

remember in the last ten years in that company, but typically you have time because they're not a one quarter phenomenon. so what's plaguing these companies, i think, is just fatigue on the part of the consumer. in some cases prices are too high. in other cases they're being outexecuted or there's more creativity at a competitor, which is, i think, what's going on here. but, regardless, it typically takes more than one quarter to turn a ship this big. i would say i don't disagree with amy saying, you know what, i need to move on and do something different. and for those who are looking at this as an opportunity, you might be right, but don't think that it's going to happen right away because these things take time. so that would be my stance here. i have no position nor am i particularly running to get involved here regardless of how much it's down off the high. >> amy, you also sold another stock that's had a lot of trouble. that's cvs down 30% year to

date. jim recently sold it. had enough of that. why did you sell it? >> the execution is just terrible. they zigged exactly when they should have zzagged. this was never a thematic position. we didn't have a lot of love for it. i might be selling at the bottom but, again, i think when something happens like this, you either have to double dounl or sell it and we weren't prepared to double down. >> it says a lot to me, sarat, amy acknowledges, hey, maybe i am selling at the bottom but i don't care. there's been enough missteps and i don't trust a turnaround is in the near future. you still hold this stock and maybe a collection of our viewers do as well. >> i do. you're getting almost a 5% yield, trading at seven times. i agree with amy, bad, bad execution. and messaging all rong. even a month ago they didn't

announce what we just found out when every one of their competitors including united health said, hey, this is all we're going to expect. i bar belled it. i have cvs on one side, united health on the other this is a devalue play now. >> it's not like united health has been a bar burner. >> their management team has more credibility. i'm not calling for a catalyst, but you could see something happen at cvs. >> in other words, my point was, if that's your bar bell, the bar bell is falling on your chest. >> well, you had some external issues with unitedhealth beyond their control, which is medicare advantage. i do think they are executing well within that. cvs has not been. and i am adding more to cvs. it's one of my deep value plays and at a valuation of seven times. talking about nike and starbucks, they're trading at 20 plus times earnings for a turnaround for those, you need a lot more. here i'm not looking for a triple but i'm looking for the stock to come back to the 70s

and 80s and at that point depending on who is still running the ship, it will be whether i stay or go. >> it's interesting to me, you -- you have bought more of a stock that's down a lot year to date -- >> yes. >> -- rather than throwing in the towel like amy has done. lamb weston is down 20 plus percent year to date. you bought that. >> we did. lam weston, they have had a couple things happen. one is the glp issue that we think is more noise, and the second one is historically you have a couple quarters where things are not as well executed. it's a great business. it's 12 times earnings, high cash flow, good dividend growing. and at 20% down it's a high quality company we want to own. >> speaking of health care related things, you bought more vertex and novartis. >> we trimmed vertex. we like the new alpine acquisition. they have a lot of shots on

goal. the holy grail will be for their pain medicine, we won't find out until next year. we think they have catalyst between now and then. >> what about novartis? >> novartis has underperformed for a little while. we think thecompany -- they had a really good earnings report. they're focused on shareholder returns and returning and streamlining the business. we think they have some patent expiration issues coming up, but they're still 13, 14 times, and we think the company can get through them. >> the other thing to watch for in pharma, so much has gone to eli lilly and to novo. if some other companies can execute, you get a lot more capital at a much cheaper valuation. it's going to become that big four, the big two in pharma. if some of the others can execute, you'll see some cap. >> they have been going to glp-1. hard for anything else to raise its hand, hey, take a look at us. we're developing some potentially life-changing drugs

as well, but that's where the story has been. >> and it used to be you get credited phase 2 coming into phase 3. now you don't get credited until the approval. >> the risk curve -- >> a big pain medicine that could be huge. >> you want to buy it now if it happens not when it gets approved. >> farmer jim, you sold reit, camden property trust. >> it's my only reit. i'm not too enthusiastic about reits. camden property is an apartment reit. i hate having intellectual conflicts. we're sitting here hoping for inflation to come down and one of the major components that will make that happen is apartment rents coming down. i can't be hoping their rents go up, that just doesn't make sense. what did you say, josh? >> it's a hedge. >> okay, fine. to me -- i hear you. to me it's a conflict. the other thing, i'm just not passionate about it. josh, you said something really

interesting a second ago about the companies out there that are not executing, and as you were saying that, i was trying to myself, there's a lot of other companies that are executing. i want to focus on those. there are so many stocks doing well. camden properties, i've held it for three years, i've gotten the dividend. nothing else. i'm not excited. i don't wake up about it excited so i'm damming it. >> i like what josh said, it's a hedge. why don't you look at it more like that where you obviously seem reasonably unemotional about it where like a weiss, for example, reminds me yesterday he owns a lot of the mega cap tech, but he sold the qs. just as a hedge. nothing more. >> yeah, i heard him. i thought it was a good argument. i can't -- i'm not excited. do you hear the lack of excitement? i want to be exciting on the show. give me something else.

>> a position used as a hedge against a long in other areas? >> i should have it as a hedge, that's a mistake i'm willing to take. i mean this seriously. i'm not being snarky at all. i actually think the economy is doing very well. i think inflation will be coming down. all these other things, these citigroups, these wynns, general motors, will be doing fine. sitting in cash, you know, i have things that i can do with that cash if i feellike my tune on the economy changes. >> josh, i'm going to get to you in just a second but i have some news i have to get to with steve kovach regarding oracle. what have we learned? >> reporter: this is shares up 3.5% or so or a little over 3% after an information report citing one single source, that ex-a.i. is closing in on a $10 billion deal to host a.i. activity on oracle's cloud servers. this would be over a course of a number of years.

by the way, x a.i. is probably trying to raise billions of dollars and give massive amounts of equity to backers as part of that big fundraise. as we know it takes an enormous amount of cash to run these a.i. systems, but it sounds like at least, according to the information citing one single source here, that it would be a $10 billion deal to run x a.i. >> thank you very much. sarat, you have oracle, don't you? >> my reason for owning oracle was the ability for the cloud business to keep on growing. and this is an example of why we want to own it. once they went over the implementation phase moving from database to cloud, the stock is reflecting it and the multiple isn't where the others are. >> i can get excited -- >> you own it, too. >> they built all those data servers, remember two or three quarters ago when the stock got sold off hard, because they were doing the capex to build out the

data servers, two or three quarters later they're reaping the benefits from. folks, that's what investing is. traders are awesome, but sarat and i invest. we look at the capex, say it's going to pay off, and here it is. >> josh, you used to have oracle. what were you going to say prior to the report from steve kovach? >> i forgot already. can i weigh in on oracle, though? >> of course. >> okay. i think what's really great about the situation for long-term investors in oracle is that you really have a stock that is on the verge of taking out a new valuation level, but it's not overbought at all. one of the big problems that we ran into in february and march is that there were so many great stories like a.i.-related stories, et cetera, software as a service story, semiconductors, but most of them were, like, at 75 and 80 rsis and, quite

frankly, that's just not the case here. so i'm not in the stock, but if i were, i would be sticking with it right now, because i feel as though there's going to be room. so, like the short-term moves, maybe don't pounce on them right away, but this is a chart in an up trend and i like it a lot. >> josh, get in it. this is your type of stock. get in it. i know you. you're going to be in it. >> i think you're going to get 150 on this. >> he was in it. he is in uber which, by the way, jason snipe joins us now, another committee member, because you bought more of this stock, jason. tell us and we'll get reaction on the other side from josh. >> i did, scott. good to see you, man. for us, we missed this one last year. the stock is up close to 70% the past year. it's down, however, 18% in the last three months. and when i looked at the print last week, the stock was down around 6%, and this is a relatively new position for us,

so we've been looking for small pullbacks in terms of trying to add here. we took that opportunity and, guess what, audience growth was up 15%, still growing the top line at 20 plus percent. really strong ebitda margin expansion. there were a couple slight misses on delivery and freight, but i think those will be temporary scott, and there's a lot of forward momentum in the stock. we decided to add to our core position here and kind of play it out and game it out over the next couple of quarters. >> what do you think, josh? >> look, this is a stock that's now in a 21% drawdown from its recent high, and is an rsi 35, which looks pretty washed out. so i like it as an entry point right here, i think it's a smart buy. >> sarat? >> look, we trimmed it earlier this year because we had luckily enough or fortunate enough to buy it last year. we're watching this one for cash

flow. they were supposed to buy back shares to make it net neutral. the question is the cash flow growth. they had an agreement overseas today, so i do still like it. it's lesser positioned. they just need to execute and, by the way, they use oracle for their cloud server. >> good stuff. jason, thank you for joining us. we'll keep it quick because i want to keep everything moving along. we'll see you soon, i'm sure. jason snipe adding to uber and joining us to tell buus about i. how about these markets? i feel like now we've digested ppi and waiting for cpi tomorrow morning. ppi he called mixed and the market is sort of acting that way. the market itself is mixed. bofa in their may fund manager survey, amy, says sentiment is the most bullish since november of '21. what's it driven by? optimism on rate cuts other than earnings. what do you think? >> i've been reading a lot of notes. if earnings -- if economic data is bad, it's good because we're

going to get rate cuts. if data is good, you'll get earnings growth. so everybody does seem pretty bulled up and there's no downside in the market, which is a little scary. i do think as long as we're pending rate cuts, it's hard for the market to go down a lot. >> the debate seems to be, guys, centered around sarat, the broadening of the market, whether that is actually sustainable or if all of these a.i.-related announcements that we seem to be getting every day -- and we'll talk about google in a minute -- if that is just more evidence of why the money is going to continue to gravitate towards that trade and don't forget nvidia's earnings are on may 22nd, so those are fast approaching, too. >> well, that's going to be very important for the overall market, but i do think the broadening is more important than just a.i. announcements, and if we can keep on seeing that and within the market, if you do get stocks selling off but the market continues, that's very positive for the market.

we're not having just stocks selling off. >> no, but bank of america equity client flows today, clients have been buyers in 27 of the last 28 weeks. tech also seeing inflows, true in eight of the last ten weeks. the money continues to go to these stocks. and even when some of these names have been pushed lower, alphabet was a good example yesterday, the stock rallied back, and that was when open a.i. held a refresh day on its chatgpt. deirdre bosa is following this story for us today for alphabet, and she is in mountain view, california, with the story. dee? that's right. i'm at the shoreline amphitheater and the keynote is supposed to kick off about 45 minutes from now. and let me give you some context. at times over the past 18 months, scott, there's been a perception that google has been playing catch-up in a.i. even though it was there first. look at the stock price. since november of 2022, that's when chatgpt was released to the

public. google stock is up about 80%, and that's actually a slight edge over microsoft's performance. microsoft which, of course, has a partnership with open a.i. and tells you how neck and neck this race is. this week we're getting a glimpse of the next battlefield here. that's a.i. agents and voice assistance. open a.i. showed us it can emote and reason and tutor you in math. today we are expecting similar capabilities from google's gemini. will they go beyond that even? will google leverage its massive scale in distribution to roll gena.i. out more widely? as we look ahead to the other big tech conference this is season, the potential of an open a.i. partnership looms large, so can google get ahead of it today? do not miss my interview with ceo sundar pichai. we'll be talking about that and a whole lot more and reacting to the event happening very soon here. >> good for you.

good get. we'll look forward to that 4:30 eastern, deirdre bosa in mountain view for us. don't forget about that interview coming up later on. jimmy, it's your biggest tech position. >> and it's easily -- i find this so easy to own it. whatever the forward multiple looks like, 22, 23 times, they have so many shots on goal here. they have the search business. they have youtube. they have google web services, wamo, everyone is trying it. maybe they'll succeed. they have other moon shots, buying back shares, actually has a dividend, and the whole thing where for many times the last year and a half people have sold the stock saying they're a laggard in a.i. is just preposterous. it's flat-out preposterous. they bought deep mine many years ago. they have the resources. and every time the stock has sold off on perceptions of being a laggard in a.i., it's been a huge buying opportunity whether it was february this year with the a.i. generator or february of last year when bard first came out and blew some question.

those are buying opportunities. at this multiple with all shots on goal, it's easy to own. >> amy, you say you're not overly excited? you call it a show-me story. you want 45% a year versus 33% from microsoft? >> we own google but i do think google is potentially most at risk if a.i. takes off in a huge, huge way. now that's not our bet, but they own search. search is a natural monopoly. they make so much money from it. we think that lasts longer than other people. i don't think they're selling off because they're behind on a.i., i think they get sell-offs when people get excited about a.i. because people are worried about that franchise of their business. the hype around a.i. is to the detriment of google or puts negative sentiment on google because they think that's the company that will be most disrupted. again, i'm not necessarily saying i'm in that camp because

i think a.i. is from a profitability perspective -- >> you feel about it like i feel about camden property trust. i don't know why we have a dissidence on this. i can't tell if you want to own it or not. >> i do own it, so i do want to own it because i own it. it's not a huge bet for us. >> josh, do you want to settle this one? you own the shares. >> on alphabet? well, it's no camden property trust, but, i must say this is one of the best performing large cap stocks in the market. again, not quite yet overbought here. actually has a lower rsi right now than most of the mag 7 including apple, believe it or not. so i think -- look, i think this is -- i think this is a situation where if you're going to be a shareholder, you're just going to have to repeatedly contend with these periodic outbursts on twitter about how

google is losing to blank, fill in the blank. open a.i. is going to release a search chat product that is going to floor people. and 100% this stock will get knocked down that day, so then you have to ask yourself, does this completely change alphabet's future? or, can i withstand that kind of negative headline shock? if you can, then, congratulations. you might be more of an investor than a trader. and if you can't, then europe basically going to be telling yourself, okay this is how i operate in the markets. i like things when the news is good, and when it's bad, i exit. neither is better than the other if you can execute well. to what jim's point was, i'm an investor. i can deal with those shocks. and, by the way, shocks are easier to deal with when you keep getting all-time highs in the share price. >> what about amazon, which you called the other day, quote, the new apple? deutsche bank says it's prime for a breakout.

they have $210 at the price target. aws ceo will step down and be replaced. what do we think? >> i don't understand how people can be in the market as long as they are and not see this is going 250. to me, just on valuation and growth rate, it just feels like this is something people shouldn't be arguing with. amazon is now trading at a 19 times trailing multiple. not cheap for the rest of the world, but cheaper than the three year, five year and its ten year median valuation. so what i'm saying, if these terms aren't familiar to you this is the cheapest you've been able to buy amazon relative to its own valuation history in a decade. in the meanwhile, amazon is putting up amazing growth numbers on an operating income basis. you think about that q2 2021 period through q2 of 2023, the

troubles we would refer to this period as, amazon had a negative 0.41% cagr. now it's night and day. look at what's happening from the middle of last year through now. we have four quarters worth of data. operating income has grown at a 150% cagr. year over year operating growth over the last four quarters is 132%, 343%, 267%, 220%. so this company has gotten religion on expenses. they're not going to be playing games anymore on that side of the business, and, in the meanwhile, they have all this growth. the cloud business is now $100 billion run rate. the advertising business is the third largest in the world and growing faster than most others. i feel as though this is just one of those stocks that people will say by the end of the year, oh, my god, i have to own it. >> all right. up next, we do have calls of the day on roblox, regeneron and more.

we have all of that next. awkward question... is there going to be anything... -left over? -yeah. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! with empower, we get all of our financial questions answered. so you don't have to worry. empower. what's next. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning.

trade brilliantly with schwab. and they're all coming? those who are still with us, yes. grandpa! what's this? your wings. light 'em up! gentlemen, it's a beautiful... ...day to fly.

all right. welcome back. let's do our "calls of the day." we'll start with roblox today.

it was downgraded from roth capital, restoring credibility takes time. those are their words. the price target cut to 35. it was at 55. sarat, all right, this thing got crushed last week. we tried to find you. you were in an undisclosed location. now you're here. there's no running. there's no hiding. i'll get it all on the table right now. >> listen -- >> what are you doing with this stock? >> i own it. it's a speculator position for me. i've said it from day one. i like the business they're in. their execution has not been good. and i think management, again, had a misstep, but the product is good. i think bookings are going to pick up and i think the stock will do well. this is similar to what uber did two years ago. you have a washout going but the stock is bouncing in the last couple of days, which is interesting after you have the 20% blowup. i'm not going to sell at these levels and i will -- >> are you a long-term holder? >> i am a long-term holder in the sense if i can still see

growth at 20%, yes. >> kay. all right. just making sure. i'm glad we finally caught up with you, sarat. regeneron, fiinitiated outperfo, 1150 price target. you own it. >> one of our largest positions. we like it a lot. it's done really well the last three years. it's pretty much doubled, but we think they have a lot of shots on goal. they have an oncology pipeline that's underappreciated and can get into autoimmune. we're happy with this position. >> so you trimmed costco this year, right? >> yes. >> it was just named the most favorable retailer, and that's at stifel. price target 800. >> we like costco a lot. it's just expensive. it's at over 50 times earnings, but they have a very -- they have the best price deal that you can get out there right now.

they have a high-income consumer base we like a lot. really well positioned, executing really well doing everything right. it's just expensive. >> so when you say it's expensive, it obviously is going to get a premium -- >> right -- >> -- over other retailers in the space, in part because the annuity business with the memberships. >> which is where they make all their margins. >> the stock is up about 18% year to date. what's a more reasonable valuation for you? >> i mean, it's expensive. it's over 50 times, so double the multiple of the s&p. so this is a stock that you have to buy when it sells off, but it just hasn't sold off anytime recently. so we like it a lot. >> edison international, sarat, price target to 86 from 72. it was upgraded to overweight from equal weight at wells fargo today. you own that stock, right? >> i do and this a boring old utility in california and

basically in 2020 when there were forest fires, the stock sold off because people didn't understand or didn't know what the liability was. well, a few years from there now. you have a strong dividend growing earnings 6 to 8%. i like the stock, 14 times earnings. i think you want to own this as participate of your portfolio. this is actually fundamental earnings. >> not an a.i. play? >> well, actually -- >> here we go. >> any utility can be an a.i. play because the demand is really high for energy, but i'm not calling it an a.i. play. >> you knew i'd crush you if you did. >> i know you'd be like, what are you talking about? >> i'm glad you know. bertha coombs with the headlines. hi, scott. florida highway patrol officials say eight people are dead, another eight critically injured in a crash in north central florida this morning. according to the highway patrol, a bus carrying farmworkers crashed and overturned after colliding with a pickup.

the marion county fire department said a total of 37 people were hospitalized. the cause of the crash still under investigation. police clashed with protesters in tbilisi, georgia, over the so-called foreign agents bill. the demonstrators argue the new law will bring their country in line with moscow and undermine georgia's bid to join the european union. the law requires organizations that receive more than 20% of their funding from abroad to register as foreign agents. and the caitlin clark craze is now taking over the nba. the former star guard for iowa now makes her wnba debut tonight with the indiana fever against the connecticut sun, the home team, the sun, says it's the first season opener that they have sold out in decades. a very exciting game. back over to you, scott.

>> bertha, thank you. coming up, we have three etfs that have risen by double digits every year for the past five years. are you invested in them? you'll find out next. what are you waiting for? dcti for us in your favorite poasng app. follow "the halftime report" podcast now. car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

♪ (upbeat music) ♪ ( ♪♪ ) with the push of a button, constant contact's ai tools help you know what to say, even when you don't. hi! constant contact. helping the small stand tall.

icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

♪ all right, welcome back. if you're on the hunt for steady returns, we found three etfs that have seen double digit gains every year for the past five. bob pisani with those names, what's inside. you are our etf expert. you are the host of "etf edge." so who better than you to tell us what's going on here? >> there's only three, thank you, scott -- only three etfs that have produced double digit returns the past five years. cnbc pro research shows the spdr and the high beta select 30 etf. that's a mouthful but i'll

explain. all three have each risen more than 10% every year since 2019. the spdr is pretty self-explanatory. broad exposure to the metals and mining segment. the largest holdings include copper and gold, freeport mcmoran along with newmont, alcoa and steel stocks that tend to move in relation to the underlike metals they're mining for. both copper and gold price have is been rallying, providing support to this etf. van eck steel etf has overlap with that mining etf i mentioned including newcor and miners like rio tinto and vale. on expectations of increased spending by the biden administration on infrastructure and supply constraints at steel makers have been able to pass on

to customers. finally, japan equity high beta tracks the high beta index that includes the most liquid and large cap stocks in japan with high beta stock price performance, foreign exchange impact and momentum. high beta reacts with more momentum. japan has been a big outperformer this year because they're finally making headway battling deflation, interest rates have been higher, and corporations in japan are putting cash reserve to work in profitability is higher. the s&p 500 for japan is up about 16% versus 9% for the s&p. >> the japan returns don't shock me. buffett, for example, berkshire hathaway, the successful bets they made in japan, i'm pretty surprised they would be up double digits every year the past five given the sensitivity to the economy, the global

economy that would likely have at a time the fed and other central banks are raising interest rates to the degree they did and how depressed that pushed the economy down for longer than ten minutes. >> right. but remember the metals in mining is probably 30% gold stocks in it. so that's been rising pretty steadily. steel stocks have been consolidating in recent years and gotten much more operational efficiency, much higher operational efficiency. and global demand has actually been improving the last two years. we're talking relatively recent outperformance just in the last two years. >> i understand but double digits every year for the past five. josh, anything jump out to you? surprise? insight? what do you think? >> so i was talking with my friend yesterday about how surprising some of these international charts are similar to japan. you have european banks, eufn, 52-week high. you have emerging markets small

caps and emerging markets at 52-week highs. in addition to metals and mining and japanese stocks, there are a lot of bull markets all over the world that, quite frankly, on television we just don't talk about, and i know why. people have lost interest over the last 10 or 15 years. maybe that's what was necessary in order for these things to take flight again. >> what do you think, jimmy? >> i'm actually surprised as well, double digit returns. look, as much as there's a lot of building going on right now, a lot of capex, automobile plants, there have been those years, like 2022 where the fed is raising rates. these are generally indebted companies. now i can also say, and, bob, you know this, they have been paying down debt. i think it's a great space and i'm investinged in one of the key names, cleveland-cliffs. >> remember, operational efficiencies -- >> which we're seeing. >> -- infrastructure gains from the biden administration.

there's a little bit of a story here. >> let me just accent the point. balance sheets have been cleaned up. these companies have been overearning, overgenerating cash flows and they've paid down debt. >> bob, thank you, man. i appreciate it. up next, three more big winners. we're trading committee stocks on a hot streak next.

(♪♪) iconic brands speak for themselves. we are so excited to welcome you to our community. today is all about you. (♪♪) (♪♪)

♪ all right, welcome back. we do have some streaking stocks we want to continue to cover. you might own some of these. honeywell, five-day win streak. sarat? >> they are firing on all cylinders. fully valued at 25 times. it's a great company. >> speaks to what, industrials, as a group have done? >> industrials, infrastructure spend, aerospace, all of that. they have the tail winds behind them. >> do you want to talk about

your j&j, also? five days. >> five days. hoping it continues for another 45 days. this has been down in the dumps 14 times, nice, really great balance sheet. they have the talc overhang. pharma is not getting any credit, they spun off their medical business. i like the story here. they have a lot of good things in the pipeline, cheap, balance sheet aaa. you want to own for a while. >> josh, it seems you bought warner bros. discovery at a good time, up four days in a row. >> i am the smartest man alive. i think i got lucky on the timing, but the reasons why i bought it are obviously still intact and, actually, one of the things i mentioned on the show, judge, was they were out in the market tendering for a debt ted trading at a steep discount. they went from 1.75 just now, an

hour ago, upped that to 2.5 billion worth. they are very rapidly deleveraging this is even more evidence of that. bill simmons seems to have confirmed they're not going to get the nba and that a deal with nbc, comcast nbc, is a done deal. i don't know if bill simmons definitely knows this, but the market seems to have digested that and the stock went higher on the news. maybe stockholders didn't want them to spend 2.5 billion keeping tnt relevant. i'm staying long. >> all right. good stuff. i want to hit earnings. cisco wednesday after the bell, tomorrow after the close. jimmy, you own that? >> it's been disappointing. i.t. spend, budgets have been going to a.i. not to the networking business that is generally cisco's bread and butter. have expectations been set low enough regarding their core

business? and, number two, what's the splunk acquisition going to do? on that one, i want to point this out, they had cash on hand. they could have bought back shares. they saw something better to do in the splunk acquisition. i am expecting them to say something meaningfully positive about that. all that said, i'm not wed to the stock. and if it continues to disappoint, i'll be out. >> okay. applied materials reports thursday after the bell. >> hard to do anything other than expect good results. we're building semiconductor plants all over the world and it oupplies the equipment. shld be a good quarter. >> we'll be joined by mike santoli and his "midday word" next.

the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future. a future where you grew a dream into a reality. it's waiting for you. mere minutes away. the future is nothing but power and it's all yours. the all new godaddy airo. get your business online in minutes with the power of ai. all right. senior markets commentator mike

santoli is here for his "midday word." apparently the cpi wasn't hot enough for the fed chair to call it hot. >> it was mixed. it's a noisy number, but what i find amazing is the market's ability at the index level to sort of sit still and wait. the high from today a week ago was 5200. we've moved 20 points since then and almost no volatility since then. once again today, it's like three quarters of all volume to the upside. so it's a firm take. traders have a willingness to bet on the bright side for the number tomorrow, or just get it out of the way and see if we can just get the test of the highs half a percent up from here in the s&p. so i don't know if you want to take it as contrarian that people aren't worried about tomorrow's number, based on the evidence of how the market is relatively relaxed. >> it's one of the notes that bank of america talking about their clients being bullish

because of the prospects of cuts. all about the fed. >> i think earnings provide the base for why you can be bullish here. >> you need it. >> but i think that basically the sort of benign patience message of powell enables people to say well, look, they're looking for an excuse perhaps to ease. and he's willing to let time do the ob, right? he's still saying we're restrictive in terms of policy. so all the things you want to hear if you were looking for the excuse to bet on rate cuts is still there. you have to see if the inflation numbers have veto power over there. >> you have 30 or something odd points away from the s&p high. "final trades" are next. did you ever worry we wouldn't get to enjoy this? [jeff laughs maniacally] (inner monologue) seriously, i'm on the green and all i can think about is all the green i'm spending on 3 kids in college. with empower, i get all of my financial questions answered. so i don't have to worry. empower. what's next.

you know, it was about having a male child and i had two daughters. for me, to lead by example was so important, that they really saw yes, there's a legacy that i leave for them. it's about financial independence, about being empowered to do what you want to do, and really make an impact.

at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com it's time to feed the dogs real food in the right amount. a healthy weight can help dogs live a longer and happier life. the farmer's dog makes weight management easy with fresh food pre-portioned for your dog's needs. it's an idea whose time has come.

hope you'll join bme on "closing bell" at 3:00 eastern time. we'll take you through the final stretch today and edge to the all-time high on the s&p 500. josh brown, final trade? >> pfizer, under $30. i think it's a gift. >> all right, thank you. been talking about that a lot lately. farmer jim? >> we were talking about oracle as an ai sort of quiet ai beneficiary. take a look at qualcomm, as well. same thing, and it's breaking out right now. >> all right. you can run, but you can't hide. serat, that's the lesson of today's show. the moral of the story. >> you can always find it. freeport. it is the copper play, and demand for copper is going through the roof. >> well, we had the etf report

from bob, right? >> yep. >> up double digits, five years. amy? >> vertex. we think the stock will go up. >> so we need 5254 on the s&p 500, and we're in this holding pattern after the ppi. of course, cpi in the morning. i'll see you at 3:00. we'll see you then, scott. hi, everybody. and welcome to "the exchange." i'm kelly evans. here's what's ahead. the ai arms race is heating up. one day after openai's front man google and front run google and threw down the gauntlet with its ai update. now it's google's turn to wow investors. this is a live shot of the io 2024 event. the ceo is just about to begin his keynote address. we'll bring you all the biggest headlines as they come in throughout the hour. but