HELLO AND WELCOME TO MARKET DOMINATION. >> I'M JULIE HYMAN. THAT'S JOSH LIPTON, LIVE FROM OUR NEW YORK CITY HEADQUARTERS. WE ARE GIVING YOU THE ULTIMATE INVESTING PLAYBOOK TO HELP TUNE OUT THE NOISE AND MAKE THE RIGHT MOVES FOR YOUR MONEY. >> AND HERE'S YOUR HEADLINE BLITZ GETTING YOU UP TO SPEED. ONE HOUR BEFORE THE CLOSING BELL RINGS ON WALL STREET. >> THE POTENTIAL UPSIDE IN EQUITIES IS REASONABLY LIMITED BECAUSE VALUATIONS ARE QUITE HIGH, WHICH IS REMARKABLE GIVEN WHERE INTEREST RATES ARE. WE JUST HAVE TO BEAR IN MIND THAT INTEREST RATES ARE NOT THE ENTIRE DISCOUNT RATE. THE DISCOUNT RATE IS THE RISK FREE RATE PLUS RISK PREMIUM AND IF THE RISK FREE RATE IS HIGH AT THIS MINUTE, ACTUALLY RISK PREMIA ARE EXTREMELY TIGHT. YOU CAN LOOK AT CREDIT SPREADS AND CREDIT SPREADS ARE ACTUALLY APPROACHING THEIR TIGHTEST. AND THAT'S ONE OF THE REASONS WHY VALUATIONS ARE AS HIGH AS THEY ARE. WE FIND IT QUITE DIFFICULT TO SEE FURTHER UPSIDE IN VALUATIONS. >> THE CONSUMER HAS BEEN RELATIVELY CONSISTENT. WE ARE LIKE EVERYONE ELSE IS LOOKING FOR. IF THERE'S SOMETHING THERE, SOMETHING THAT WE SHOULD BE MORE AWARE OF, BUT THEY'VE BEEN PRETTY CONSISTENT. QUARTER TO QUARTER. HERE WE SEE THAT WALLETS ARE STILL STRETCHED. THEY'RE STILL LOOKING FOR VALUE. THEY'RE STILL USING DISCRETION WITH BUYING THOSE THOSE HIGHER INCOME ITEMS. >> THE INITIAL REACTION WE ALL CHASE REVENUES. WE ALL WANT TO LOOK AT REVENUES. AND SO THE REVENUE GUIDE WAS VERY DISAPPOINTING. BUT IF YOU TAKE A STEP BACK AND LOOK AT THIS, YOU CAN REALIZE THAT UNDER ARMOR IS AN UNDERVALUED, UNDER EARNING BRAND. AND IF THE COMPANY IS FINALLY WILLING TO ACKNOWLEDGE THAT IF THEY ARE LOOKING TO SAY WE REALLY NEED TO DO BETTER RATHER THAN DO BIGGER, THEN THE STOCK IS UNDERVALUED. >> WE HAVE GOT ONE HOUR TO GO UNTIL THE MARKET CLOSE, SO LET'S TAKE A LOOK AT THE MAJOR AVERAGES SPONSORED BY TASTYTRADE. WE HAD 40,000 VERY BRIEFLY HERE, TOUCHED 40,000, THEN CAME BACK DOWN FROM THAT LEVEL FOR THE DOW JONES INDUSTRIAL AVERAGE. STILL ANY HIGHER CLOSED TODAY WILL BE A RECORD NOT JUST THE DOW BUT FOR THE S&P AND THE NASDAQ AS WELL. BUT IT'S LOOKING A LITTLE LESS CERTAIN THAN IT DID EARLIER IN THE SESSION. RIGHT NOW THE DOW IS UP ABOUT 59 POINTS. BUT THE S&P 500 VERY LITTLE CHANGED AND SORT OF STRUGGLING TO HOLD ON TO THOSE GAINS. AND THE NASDAQ IS LITTLE CHANGED SLIGHTLY TO THE DOWNSIDE HERE. SO WE CONTINUE TO WATCH THESE LEVELS TO SEE IF WE'RE GOING TO GET SOME KIND OF PUSH INTO THE CLOSE. BUT FOR THE MOMENT, IT DOESN'T LOOK LIKE WE ARE SEEING IT HERE. AS WE CONTINUE TO TALK ABOUT WHAT'S GOING ON IN THE STOCK MARKET, WE ARE WATCHING BOND YIELDS VERY CLOSELY. A LITTLE BIT OF REBOUND HIGHER AFTER YESTERDAY'S BUMP DOWNWARD IN YIELDS. BUT STILL PRETTY LOW COMPARED WITH WHAT WE'VE BEEN SEEING RECENTLY AT 4.38. NOW OUR JARED BLIKRE HAS GOT A DEEPER LOOK AT WHAT'S HAPPENING IN THE MARKETS TODAY. >> HEY JULIE, I THOUGHT WE'D TAKE A LOOK AT THE DOW HERE CELEBRATING THE 40,000. I DON'T KNOW WHAT THE OFFICIAL RULES ARE , IF YOU JUST TOUCH IT OR IF YOU HAVE TO CLOSE ABOVE. BUT NEVERTHELESS, AS YOU SAID, WE HIT IT AND I THOUGHT IT WOULD BE INTERESTING JUST TO TRACK. THESE ARE ALL THE COMPONENTS IN THE DOW, BY THE WAY. THE YEAR TO DATE TOTALS. AND WE'VE SEEN AT THE BEGINNING OF THE YEAR IT WAS ALL ABOUT THE MAG SEVEN. AND THEN WE HAD THIS INTERESTING ROTATION. AND NOW WE'RE SEEING FINANCIALS AT RECORD HIGHS. HERE'S JP MORGAN UP 19% THIS YEAR. AND I'LL GIVE YOU A YEAR TO DATE CHART THAT ALONG WITH GOLDMAN SACHS HAS BEEN HITTING RECORD HIGHS. AND INDUSTRIALS TOO. NOT CATERPILLAR IN PARTICULAR. BUT WE'VE SEEN A LOT OF INDUSTRIALS INCLUDING THE SECTOR ITSELF HIT RECORD HIGHS. HERE IS ANOTHER ONE WALMART HUGE HUGE STORY THIS MORNING. IT IS UP 7% TODAY WHICH IS A BIG DEAL FOR A CONSUMER STAPLE. AND THIS IS A WALMART RIGHT HERE BREAKING OUT OF A MULTI-MONTH BASE. SO WE'RE JUST SEEING STRENGTH COME FROM ALL THESE DIFFERENT PARTS OF THE MARKET. HERE IS MICROSOFT MICROSOFT HASN'T DONE A LOT THIS YEAR. YOU CAN SEE IT'S BEEN IN A TRADING RANGE ITSELF. BUT WE DO HAVE HIGH HOPES PERHAPS, THAT THE TECH SECTOR SECTOR WILL GET ANOTHER BOOST. WE HAVE APPLE FINALLY BOUNCING BACK FROM THESE LOWS. IT'S COME UP PRETTY QUICKLY, ALTHOUGH YOU CAN SEE IT'S STILL MIRED IN THE RED HERE ON A YEAR TO DATE BASIS. AND I CAN TICK THROUGH THE OTHER SECTORS. BUT I THINK THE BOTTOM LINE IS THAT WE HAVE A LOT OF STRENGTH, AND I WOULDN'T BE SURPRISED IF WE SEE DOW 50,000. I'M NOT GOING TO MAKE A TIME PREDICTION. COULD IT BE NEXT YEAR? MAYBE THIS YEAR? THAT'S POSSIBLE TOO. >> JARED. LET'S SEE IF OUR NEXT GUEST WILL MAKE A PREDICTION. WE'LL TRY STOCK MIX TODAY WITH THE DOW CROSSING 40,000 FOR THE FIRST TIME EVER FOR MORE ON THE LATEST MARKET MOVES AND WHAT THEY MEAN FOR INVESTORS, LET'S NOW WELCOME IN BEN MCMILLAN, ID ADVISORS CHIEF INVESTMENT OFFICER BEN, IT IS GOOD TO SEE YOU. SO DOW 40,000 BEN MAKING HEADLINES GETTING A LOT OF ATTENTION. LET'S JUST START THERE BEN WHAT DO YOU MAKE OF THIS MARKET WHERE WE ARE AND WHERE YOU THINK WE'RE HEADED FROM HERE. YEAH I MEAN, YOU KNOW, LOOK AFTER YESTERDAY'S INFLATION NUMBERS, YOU KNOW, IT'S YOU KNOW, THE NEWS WAS FAIRLY GOOD. >> THE ECONOMY REMAINS STRONG. INFLATION IS MODERATING. I DO THINK, YOU KNOW, EQUITIES ARE PRICED TO PERFECTION AT THIS POINT. SO YOU KNOW WE WOULD URGE CAUTION. IT'S ALSO IMPORTANT TO REMEMBER THAT THIS IS A MOMENTUM DRIVEN MARKET. THERE'S NOT YOU KNOW YOU GOT TO BE REALLY CAREFUL TO KIND OF PICK AND CHOOSE YOUR VALUE. YOU KNOW WE'VE ALREADY SEEN THE ROTATION OUT OF KIND OF THE TECH DOMINATED MAG SEVEN AT THE BEGINNING OF THE YEAR. YOU KNOW, FAST FORWARD TO TODAY AND UTILITIES, THE XLU SECTOR IS OUTPERFORMING THE QS. SO I THINK THAT'S IN SOME WAYS VERY GOOD. WE'RE SEEING A BROADENING. WE'RE SEEING MORE BREADTH, AS OPPOSED TO JUST SEVEN STOCKS CARRYING THE INDICES HIGHER, I WOULDN'T BE SURPRISED IF WE SEE, YOU KNOW, THE INDICES CONTINUE TO SET HIGHS THROUGHOUT THE END OF THE YEAR. BUT AGAIN, YOU KNOW, URGE CAUTION HERE BECAUSE IF YOU DRILL IN UNDER THE HOOD, YOU KNOW, THE CONSUMER IS DRIVING THE ECONOMY. BUT, YOU KNOW, THERE'S AN ASTERISK THERE, YOU KNOW, DEFAULTS ARE STARTING TO CREEP UP. IT LOOKS LIKE UNEMPLOYMENT, YOU KNOW, MIGHT BE SHOWING SOME SIGNS OF WEAKNESS, AND, YOU KNOW, IF THE ALMIGHTY CONSUMER FALLS, YOU KNOW, THAT'S WHERE WE COULD START TO SEE, YOU KNOW, A REAL CORRECTION. >> AND SO WHEN YOU TALK ABOUT THINGS BEING PRICED FOR PERFECTION, WHAT KIND OF A SCENARIO ARE STOCKS IMPLYING THEN AT THESE LEVELS? >> WELL, YOU KNOW, ONE THING I THINK WAS INTERESTING WHEN YOU, YOU KNOW, LIKE AGAIN, WE STARTED THE BEGINNING OF THE YEAR WITH KIND OF, YOU KNOW, 6 TO 7 RATE CUTS PRICED IN. OBVIOUSLY, YOU KNOW, INTEREST RATES MOVE EVERYTHING. IT'S THE DISCOUNT RATE FOR ALL RISK ASSETS, INCLUDING STOCKS. YOU KNOW, AFTER YESTERDAY'S, YOU KNOW, PRINT, WE STILL HAVE TWO RATE CUTS. YOU KNOW, THE MARKET'S STILL PRICING IN TWO RATE CUTS WHICH YOU KNOW, I THINK IS STILL FAIRLY OPTIMISTIC. I MEAN, YOU KNOW, YOU'VE EVEN HAD, YOU KNOW, RICHARD FISHER, FORMER DALLAS FED PRESIDENT, YESTERDAY SAYING HE WAS SKEPTICAL THAT, YOU KNOW, WE'D HAVE TWO RATE CUTS THIS YEAR. AND SO I THINK THAT'S THE TAIL RISK IN THIS MARKET IS THAT, YOU KNOW, THE ASSUMPTIONS GOING INTO THESE EQUITY VALUATIONS ARE STILL POTENTIALLY A LITTLE BIT TOO ROSY. NOW AGAIN, THE FLIP SIDE OF THAT IS WE'VE GOT RECORD DEFICIT SPENDING. YOU KNOW LET'S LET'S LOOK AT KIND OF THE ELEPHANT IN THE ROOM, WHICH IS YOU KNOW WHAT'S POWERING THIS ECONOMY. YES IT'S THE CONSUMER. BUT PART OF THAT IS BECAUSE THEY'RE COMING OFF, YOU KNOW, THEY'VE GOT A LOT OF EXCESS SAVINGS AFTER COVID. WE HAVE, YOU KNOW, DEFICIT SPENDING THAT'S GREATER THAN 6% WITH UNEMPLOYMENT UNDER 4, WHICH I DON'T KNOW THAT WE'VE EVER SEEN, WITH THE POSSIBLE EXCEPTION OF KIND OF WORLD WAR TWO. SO THAT'S, YOU KNOW, THAT BILL IS GOING TO COME DUE AT SOME POINT. AND I THINK THAT'S I THINK WE'RE STARTING TO SEE THAT WITH STICKIER INFLATION. I THINK WE COULD SEE SOME DOLLAR WEAKNESS IN THE FUTURE FOR SURE. AND EQUITY MARKETS COULD CERTAINLY GO HIGHER. BUT I DO THINK THERE'S RISK TO THE DOWNSIDE FOR SURE. >> SO BEN YOU KNOW, SO WHAT YOU'RE URGING HERE IS KIND OF CAUTIOUS OPTIMISM. THAT'S A THEME. IF THAT'S TRUE BEN HOW DO I SORT OF INVEST IN THAT THEME. YOU KNOW, AT LEAST IN THE US STOCK MARKET, WHAT SECTORS WOULD LOOK LIKE WOULD LOOK ATTRACTIVE TO YOU? BEN HERE? >> WELL, I THINK WE'RE STARTING TO SEE KIND OF A BROADENING YOU KNOW, ONE OF THE CONCERNS EARLIER THIS YEAR WAS THAT YOU HAD OR EVEN LAST YEAR, FRANKLY, IS THAT YOU HAD, YOU KNOW, A HANDFUL OF STOCKS LITERALLY PULLING THE ENTIRE INDEX HIGHER. AND SO, YOU KNOW, A LOT OF EQUITY STRATEGISTS, A LOT OF INVESTORS WANTED TO SEE A BROADENING OUT OF EQUITY STRENGTH. AND WE'RE SEEING THAT, LIKE I SAID, I MEAN, YOU START TO SEE SOME OF THE MORE DEFENSIVE SECTORS. UTILITIES IS A GOOD EXAMPLE OF VALUE STOCKS. YOU KNOW, CONSUMER DISCRETIONARY. RATHER CONSUMER STAPLES, YOU KNOW, STARTING TO KIND OF PICK UP WHERE, YOU KNOW, THINGS LIKE TECHNOLOGY AND THE, YOU KNOW, THE HIGH FLYING TECH STOCKS HAVE HAVE, LAGGED OFF. SO I THINK THAT'S GOOD. YOU KNOW, I CANDIDLY, I THINK YOU KNOW, YOU'RE STARTING TO SEE A MOVE TOWARDS ACTIVE MANAGEMENT. YOU KNOW, THIS IS A SO-CALLED STOCK PICKERS MARKET. I DO THINK THAT'S GOING TO START TO MATTER MORE. I THINK, YOU KNOW, THE POCKETS OF VALUE FOR THOSE THAT YOU KNOW, ARE REALLY TAKING A CLOSE LOOK WILL, YOU KNOW, THEY'LL BE ABLE TO FIND IT, BUT IT'S GOING TO BE MUCH LESS OF A, YOU KNOW, JUST KIND OF SET IT AND FORGET IT, TRADE MUCH MORE OF A, YOU KNOW, PICK YOUR SPOTS AND REALLY TRY AND FIND THE VALUE STOCKS. >> WELL, AND YOU TALKED ABOUT UTILITIES REALLY SEEING AN UPTICK IN DEMAND. WE'VE SEEN THAT GROUP REALLY START TO PICK UP SOME STEAM HERE. UNDERLYING THAT IS THIS DEMAND FOR MORE ELECTRICITY, MORE POWER IN PART BECAUSE OF DATA CENTERS. YOU'RE LOOKING AT URANIUM SPECIFICALLY HERE BECAUSE OF THE NUCLEAR PLAY. HOW DO YOU THINK THAT IS GOING TO PLAY OUT? AND HOW DOES ONE PLAY THAT. >> SO THAT IS THAT'S AN EXCELLENT POINT. AND THAT IS A BIG TREND THAT WE'RE STARTING TO SEE UNFOLD. AND YOU'RE SEEING THAT IN COMMODITIES PRICES. I MEAN LOOK AT COPPER. YOU KNOW COPPER COPPER IS KIND OF TRADING PART AND PARCEL WITH UTILITIES. AND IT'S ALL PART OF THIS, AS YOU SAID, KIND OF MOVE TOWARDS ELECTRIFICATION, YOU KNOW, ALL THINGS EV ALTERNATIVE ENERGY. AND YOU KNOW THERE'S AN EMBEDDED IN PLAY THERE TOO. YOU KNOW, IF YOU LOOK AT COUNTRIES LIKE CHINA COMING BACK ONLINE OR INDIA STARTING TO EMERGE AS, YOU KNOW, BIG CONSUMERS, THEY'RE GOING TO NEED A LOT OF ELECTRICITY, THEY'RE GOING TO NEED A LOT OF WIRING FOR THAT ELECTRICITY AND EVERYTHING. YOU MENTIONED IS KIND OF PART OF THAT. AND SO I THINK, YOU KNOW, WE'RE VERY BULLISH ON COPPER. WE'RE BULLISH ON UTILITIES, FOR THAT EXACT REASON BECAUSE WE THINK THAT'S WE'RE IN THE EARLY INNINGS OF KIND OF A SECULAR BULL MARKET FOR, YOU KNOW, THIS MOVE TOWARDS ALTERNATIVE ENERGY, THIS MOVE TOWARDS GREATER ELECTRICITY WHICH YOU KNOW, INTERESTINGLY COPPER, THIS KIND OF BORING INDUSTRIAL METAL NOW ALL OF A SUDDEN IS KIND OF AN ADJACENT I PLAY THEN I ALSO WANT TO GET YOUR TAKE ON GOLD. >> I'M INTERESTED IN HOW YOU WANT TO INVEST THERE. DO YOU WANT TO INVEST THERE? AND IF SO, BEN, IS IT WITH THE METAL? THE MINERS BOTH. >> SO WE REMAIN BULLISH ON BOTH GOLD AND THE MINERS, FOR THE SAME REASON THAT I MENTIONED EARLIER IS, YOU KNOW, THE, THE US HAS PRINTED A LOT OF MONEY. IT HAS, YOU KNOW, BEEN VERY AGGRESSIVE WITH ITS STATUS AS A RESERVE CURRENCY. AND IF YOU LOOK, YOU KNOW, THE WORLD HAS TAKEN NOTICE. YOU KNOW, IF YOU LOOK AT CENTRAL BANK BUYING AND GOLD, WE STARTED GETTING BULLISH ON GOLD, YOU KNOW, SEVERAL MONTHS AGO, MAINLY BECAUSE, YOU KNOW, WE WERE SEEING CENTRAL BANKS GLOBALLY REALLY STEP UP THEIR GOLD PURCHASES. AND THEY'RE DOING THAT BY SELLING TREASURIES. AND THAT'S YOU KNOW, THAT'S THE MARKET SAYING THAT WE'RE WORRIED ABOUT THE US PRINTING MONEY. LET'S NOT FORGET 80% OF ALL DOLLARS IN EXISTENCE HAVE BEEN PRINTED, YOU KNOW, SINCE COVID. AND YOU KNOW GOLD IS A WAY TO PLAY THAT. AND IF YOU LOOK AT THE GOLD MINERS SPECIFICALLY, YOU KNOW, WITH HIGHER PRICES, THERE'S A LOT OF EMBEDDED OPERATING LEVERAGE IN THE MINERS. IT'S A MORE VOLATILE ASSET CLASS, TO BE SURE. BUT, YOU KNOW, IT'S ONE THAT WE THINK IS UNDERVALUED, VALUED RELATIVE TO THE METAL, AND, YOU KNOW, ONE THAT WE'RE BULLISH ON. >> BEN, THANKS SO MUCH. APPRECIATE YOUR TIME TODAY. WE'RE JUST GETTING STARTED HERE ON MARKET DOMINATION. COMING UP, THE BIDEN ADMINISTRATION TAKING ANOTHER STEP TOWARD RECLASSIFYING MARIJUANA AS A LOWER RISK SUBSTANCE. WE'LL GET INVESTOR REACTION LATER IN THE HOUR AS CANNABIS STOCKS ARE SOARING TODAY AND WALMART SHARES RISING AFTER FIRST QUARTER RESULTS IMPRESSED WALL STREET. BUT THIS ISN'T ANYTHING NEW, AS THE DISCOUNT MEGASTORE HAS BEEN REDEFINING RETAIL FOR MORE THAN SIX DECADES. YAHOO FINANCE IS GOING BEYOND THE TICKER TO TAKE A DEEPER DIVE INTO THE COMPANY'S BIGGEST MOMENTS. >> FOR MORE THAN SIX DECADES, THE DISCOUNT MEGA STORE WALMART HAS REDEFINED RETAIL. IN 2023 ALONE, THE COMPANY BROUGHT IN MORE THAN $648 BILLION IN REVENUE. BEYOND THE TICKER TAKES A DEEP DIVE INTO THE COMPANY'S BIGGEST MOMENTS. WALMART WAS FOUNDED IN 1962 BY SAM WALTON. ITS FIRST LOCATION WAS IN ROGERS, ARKANSAS, FIVE YEARS LATER, THE WALTON FAMILY OWNED 24 STORES AND HAD RACKED UP $12.7 MILLION IN SALES. ON OCTOBER 1ST, 1970, WALMART WENT PUBLIC VIA AN IPO ON THE NEW YORK STOCK EXCHANGE. SHARES OPENED AT 1650 PER SHARE. THE COMPANY OPENED ITS FIRST SAM'S CLUB IN 1983, IN OKLAHOMA, IN A BID TO COMPETE WITH COSTCO'S WHOLESALE MEMBER ONLY MODEL. IN EARLY 1988, FOUNDER SAM WALTON STEPPED DOWN AS CEO AND DAVID GLASS WAS NAMED HIS SUCCESSOR. THAT SAME YEAR, THE FIRST WALMART SUPERCENTER OPENED IN WASHINGTON, MISSOURI, CREATING WHAT IT'S CURRENTLY KNOWN FOR. THAT MIX OF GENERAL MERCHANDISE AND GROCERY. IN 1996, WALMART OPENED ITS FIRST LOCATION IN CHINA AND SURPASSED $1 BILLION IN SALES FOR THE YEAR. WALMART COM LAUNCHED IN 2000, ALLOWING U.S. CUSTOMERS TO SHOP ONLINE. AS AMAZON.COM BEGAN TO TAKE OFF TO COMPETE WITH AMAZON, AMONG OTHER ONLINE RETAILERS. WALMART INTRODUCED FREE TWO DAY SHIPPING IN 2017. DURING THE PANDEMIC, THE RETAILER BOOMED AS CONSUMERS SOUGHT OUT THE COVID 19 VACCINE AND THEN CHEAPER GROCERIES AS INFLATION PICKED UP. IN LATE MARCH, WALMART'S STOCK REACHED A RECORD CLOSING HIGH OF $61.45 PER SHARE. AND IT ONLY KEEPS GROWING FROM HERE, WITH MORE THAN 10,500 STORES IN 19 DIFFERENT COUNTRIES . >> TIME NOW FOR SOME OF THE DAY'S TRENDING TICKERS. TOP TRENDING TICKERS ON YAHOO FINANCE. WALMART SHARES RISING AFTER THE RETAILER'S FIRST QUARTER RESULTS IMPRESSED WALL STREET. THE MOVE HIGHER, PUSHING THE COMPANY'S MARKET VALUE OVER $500 BILLION FOR THE FIRST TIME. AND WALMART CFO JOHN DAVID RAINEY APPEARING ON THE MORNING BRIEF EARLIER TODAY, HE SPOKE ABOUT THE QUARTER AND WHAT IT SIGNALS ABOUT THE CONSUMER. >> THE CONSUMER HAS BEEN RELATIVELY CONSISTENT. WE ARE, LIKE EVERYONE ELSE, IS LOOKING FOR MORE. IF THERE'S SOMETHING THERE, SOMETHING THAT WE SHOULD BE MORE AWARE OF. BUT THEY'VE BEEN PRETTY CONSISTENT QUARTER TO QUARTER HERE WE SEE THAT WALLETS ARE STILL STRETCHED WALL OUTS ARE STILL STRETCHED. >> BUT THE FACT THAT SORT OF UPPER INCOME WALLETS ARE STRETCHED, MEANING THEY ARE NOW COMING TO WALMART. >> AND THAT SEEMS TO BE SOMETHING THAT CHARACTERIZED THE QUARTER WHERE PEOPLE SORT OF TRADED DOWN TO WALMART AND THAT BENEFITED IT. >> YEAH, IT WAS INTERESTING TOO. JULIE. I THOUGHT THE FOCUS ON KIND OF THESE NEWER, HIGHER MARGIN REVENUE STREAMS IS REALLY INTERESTING TO ME. JUST KIND OF THE FOCUS. WE SAID, YEAH, BY THAT WE MEAN DIGITAL ADVERTISING AND MARKETPLACE FEES AND FULFILLMENT SERVICES AND YOU SAW THAT IN THIS PRINT TOO, WHERE THE COMPANY KIND OF CALLED OUT HOW MUCH GROWTH NOW IS COMING FROM SORT OF, I GUESS YOU CALL IT NON CORE RETAIL BUSINESS. AND OF COURSE, IF YOU'RE A WALMART INVESTOR, YOU KNOW THAT KIND OF GROWTH IN HIGHER MARGIN SERVICES, YOU LOVE TO SEE. AND YOU'RE BETTING ON THAT BECOMING JUST AN INCREASINGLY BIGGER PART OF THE OVERALL PIE. >> YEAH. AND E-COMMERCE WAS A BIGGER PART OF THE PIE. YOU KNOW WHAT NUMBER STOOD OUT TO ME FOR THE QUARTER? THE COMPANY SHIPPED 4.4 BILLION UNITS WERE SAME DAY OR NEXT DAY DELIVERY FOR WALMART . COM THAT'S OVER THE PAST 12 MONTHS, BY AND IF YOU LOOK IN CONTRAST TO THAT, 4 BILLION ITEMS WAS WHAT AMAZON REPORTED. SO LIKE THEY'VE COME IN LINE OR EVEN SURPASSED THOSE SAME DAY OR NEXT DAY DELIVERIES FROM AMAZON, I WAS PRETTY SURPRISED BY THAT FIGURE. >> AND NEXT WEEK, BY THE WAY, TARGET SOME MORE ON DECK. SEE ANY READ THROUGH HERE? RIGHT. LOOK AT SHARES OF CANADA GOOSE. THAT STOCK IS SURGING AFTER DELIVERING HIGHER THAN EXPECTED SALES GROWTH. LOOK AT THAT POP. ABOUT 17. SO THE COAT MAKER REPORTS SALES GROWTH BETTER THAN EXPECTED JULIE. SOUNDS LIKE WE CAN CHALK A LOT OF THAT UP TO CHINA IN PARTICULAR AS WELL AS IT LOOKS LIKE STRENGTH HERE IN THE U.S, REVENUE CLOCKS IN AT 263 MILLION. THAT WAS HIGHER THAN WHAT THE STREET WAS LOOKING FOR. COMPANY ALSO TO OFFER A NEW OUTLOOK, LOOKING FOR SLOW GROWTH ON THE TOP LINE. IT LOOKS LIKE LOW SINGLE DIGITS BUT HIGHER PROFITABILITY IN FISCAL 25. >> YEAH, I DIDN'T REALIZE THIS THAT A 40% OF THE COMPANY'S STORES ARE IN THE ASIA PACIFIC REGION, AND SALES THERE WERE UP 30% IN THE QUARTER. THE COMPANY IS ALSO TRYING TO SORT OF GET ITS INVENTORY UNDER CONTROL. SO THEY'RE REDUCING THEIR PRODUCTION LEVELS SO THEY DON'T HAVE TO WORRY ABOUT A SORT OF INVENTORY GLUT OUT THERE. SO IT SEEMS LIKE THAT'S SOMETHING THAT ANALYSTS AND INVESTORS LIKED AS WELL. >> YEAH. ON THE CONSUMER, THEY ACTUALLY EXECUTIVES YOU HEARD TALK ABOUT PRESSURE ON THE CONSUMER. THEY RATE ENVIRONMENT GEOPOLITICS. BUT YOU KNOW WITH THE STREET LIGHT WAS THIS TALK OF INCREASING PRICES AND MARGINS. THAT'S THAT SEEMED TO DO THE TRICK. >> EXACTLY. WELL, ANOTHER RETAILER THAT WE ARE WATCHING IS UNDER ARMOR. THAT COMPANY DELIVERING DOWNBEAT GUIDANCE FOR 2025 WHILE ALSO OUTLINING ITS RESTRUCTURING PLANS. CEO KEVIN PLANK WARNING OF PRESSURE TO THE BRAND'S TOP AND BOTTOM LINE IN THE NEAR TERM AS IT BUILDS A PREMIUM POSITIONING FOR UNDER ARMOR OR TRIES TO. HERE TO DISCUSS WEDBUSH SECURITIES SENIOR EQUITY RESEARCH ANALYST ANALYST TOM NIKICH, ALONG WITH CFRA RESEARCH ANALYST ZACHARY WARRING. THANK YOU BOTH SO MUCH FOR BEING HERE, TOM, I'M GOING TO START WITH YOU. HERE IS UNDER ARMOR DOING WHAT IT NEEDS TO DO TO IMPROVE PERFORMANCE. >> WELL, I'D SAY IN SOME WAYS, YES. AND IN SOME WAYS NO, ON THE POSITIVE SIDE, A BIG FOCUS ON THE CALL TODAY WAS, REDUCING THE RELIANCE ON DISCOUNTING, REDUCING THE RELIANCE ON PROMOTION TO DRIVE SALES, WHICH I THINK IS ABSOLUTELY THE RIGHT THING TO DO, YOU KNOW, YOU DO NOT WANT TO BE A BRAND THAT COMPETES SOLELY ON PRICE, THAT, IS JUST, YOU KNOW, LEADS TO A DOWNWARD SPIRAL OF PRICING. AND, THAT'S PROBLEMATIC, THE ISSUE IS THAT, I DON'T THINK THEY'VE DONE WHAT THEY NEED TO DO FROM A PRODUCT DEVELOPMENT PERSPECTIVE, THEY DON'T REALLY HAVE A LOT OF NEW AND EXCITING PRODUCTS, TO DRIVE CONSUMER DEMAND. YOU KNOW, I THINK, YOU KNOW, THE MARKETING HAS BEEN SOMEWHAT LACKLUSTER, SO I THINK, YOU KNOW, SOME OF THAT, YOU KNOW, BASIC, YOU KNOW, BRAND BUILDING, BLOCKING AND TACKLING. I THINK THERE'S A LOT OF WORK TO BE DONE. BUT AS FAR AS, YOU KNOW, TRYING TO TRYING TO MAINTAIN PRICING INTEGRITY FOR THE BRAND, I THINK THAT THAT'S, DEFINITELY A STEP IN THE RIGHT DIRECTION. >> AND, ZACH, LET'S BRING YOU IN HERE AS WELL. AND I GUESS SAME QUESTION TO BEGIN WITH, ZACH, KIND OF BIG PICTURE. YOU KNOW, WHEN YOU HEARD ABOUT THE STRATEGY, THE RESTRUCTURING IS IT THE SMART RIGHT MOVE? ZACH >> YEAH. YOU KNOW I'VE BEEN FOLLOWING THIS COMPANY FOR A WHILE NOW, AND I CAN'T TELL YOU HOW MANY TIMES I'VE HEARD THE, THE WORD RESTRUCTURING WITH THEM, AND I'M JUST I'M HAVING A HARD TIME. I THINK INVESTORS HAVE ALSO LOST KIND OF FAITH HERE, TOO, BELIEVING MANAGEMENT, JUST BECAUSE THEY'VE HAD SUCH POOR EXECUTION OVER THE PAST TEN YEARS, YOU KNOW, THEY'VE HAD A REALLY HARD TIME OUTSIDE OF 2020, YOU KNOW, OPERATING MARGINS BELOW 5, WELL BELOW PEERS, AND EVEN OUT TODAY, YOU KNOW, SHARES REBOUNDED FROM THIS MORNING'S LOW. YOU KNOW, SHARES TRADE OVER 30 TIMES THIS NEXT 12 MONTH EARNINGS, THAT'S HIGHER THAN LULU AND NIKE RIGHT NOW, TWO COMPANIES THAT HAVE ALWAYS EXECUTED WELL. SO YOU KNOW, TO ME, I'VE BEEN FOLLOWING THIS COMPANY FOR A WHILE, AND AT THIS POINT I'M, I'M REALLY SHOW ME, AND I'M KIND OF STEPPING AWAY FROM, WELL, MAYBE YOU KNOW, THAT THIS IS WHAT THEY SAY THEY'RE GOING TO DO. AND, AND I'M REALLY MORE OF A SHOW ME, I'D LIKE TO SEE A COUPLE OF QUARTERS WHERE NIKE OR, UNDER ARMOR, ACTUALLY, YOU KNOW, STARTS TO IMPROVE OPERATING MARGINS ABOVE 5, AND KIND OF GOES TOWARDS PEER AVERAGES, BUT I JUST HAVEN'T SEEN THAT FROM THEM. AND I'VE HEARD THIS, YOU KNOW, 15 TIMES IN THE LAST TEN YEARS, YOU KNOW, RESTRUCTURING, MANAGEMENT CHANGE. AND I'M JUST, YOU KNOW, AT THIS POINT IT'S A SHOW ME THING. >> WELL, ZACH, IS THERE JUST NOT ROOM FOR AN UNDER ARMOR AT SCALE IN, YOU KNOW WHAT WHAT IS UNDER ARMOR, RIGHT. >> YOU'VE GOT YOUR NIKE'S THE WORLD. YOU'VE GOT YOUR ADIDAS OF THE WORLD. WHERE IN A MORE SORT OF EXISTENTIAL WAY. >> AND I DON'T EVEN KNOW HOW YOU ANSWER THIS QUESTION. LIKE WHAT? >> WHAT PLACE DOES UNDER ARMOR HAVE? WHAT IS OR POTENTIALLY WHAT IS ITS PLACE EXACTLY, AND YOU'VE GOT THESE NEW THESE NEW BRANDS, THAT ARE KIND OF EMERGING HERE. YOU'VE GOT HOKA, SOME OF THESE OTHER SHOE BRANDS. I KNOW THAT'S ONLY PART OF THEIR BUSINESS, BUT, AND THERE'S, THERE'S ALSO, YOU KNOW, UP AND COMING APPAREL BRANDS IN THE US THAT ARE DO A REALLY GOOD JOB OF MARKETING THROUGH SOCIAL MEDIA AND TARGETING A SPECIFIC AUDIENCE. SO YOU KNOW, I THINK, YOU KNOW, I DO I DO LIKE THE BRAND. AND I HAVE, YOU KNOW, LIKE THE BRAND FOR YEARS. IT'S JUST FOR ME, IT'S AN OPERATING THING. AND UNTIL THEY GET SOMEBODY IN THERE IN CHARGE THAT THAT CAN OPERATE AND GET MARGINS BACK ABOVE, YOU KNOW, WELL ABOVE 5, I THINK, YOU KNOW, 10% IS KIND OF BOTTOM LINE. WHAT THEY NEED TO BE AT, THEN, YOU KNOW, I JUST I DON'T HAVE A LOT OF FAITH IN SHARES AND, YOU KNOW, AND I, I HAVE A SELL OPINION. SO, I'VE HAD IT FOR A WHILE. I'D LIKE TO LIKE I SAID, I'D LIKE TO SEE A COUPLE OF QUARTERS WHERE MANAGEMENT EXECUTES AND OPERATING MARGIN TRENDS TOWARDS, YOU KNOW, 10. >> SO, TOM, LET'S LET'S BRING YOU IN HERE AND THIS IS A GOOD DEBATE, TOM, BECAUSE YOU HAVE A VERY DIFFERENT VIEW. YOU GOT AN OUTPERFORM RATING. SO YOU'RE A BELIEVER. HOW COME TOM MAKE THE CASE. >> WELL I, I WOULD SAY MY OUTPERFORM RATING IS NOT PREDICATED ON THEM. >> YOU KNOW CURRENT CURRENTLY YOU KNOW EXECUTING WELL OR KNOCKING THE COVER OFF THE BALL OR ANYTHING LIKE THAT, MY OUTPERFORM RATING IS A LITTLE BIT MORE, YOU KNOW, IF YOU JUST KIND OF THINK, YOU KNOW, RISK REWARD, BASIS. RIGHT. SO, YOU KNOW, THE SHARES ARE VERY, VERY BEATEN DOWN, SENTIMENT IS ABOUT AS LOW ON THIS NAME AS YOU COULD POSSIBLY IMAGINE, THEY HAD VERY, VERY DOWNBEAT, GUIDANCE TODAY, AND, YOU KNOW, I WOULD VENTURE A GUESS TO SAY THAT, YOU KNOW, IF WHEN WE GET TO THE END OF THE YEAR, I'D SAY THE RISK THAT THE YEAR COMES IN A LITTLE BIT BETTER THAN THEIR GUIDANCE IS GREATER THAN THE RISK THAT THE YEAR ENDS UP WORSE THAN THEIR GUIDANCE, YOU KNOW, IT IS A VERY COMPETITIVE ENVIRONMENT, BUT IT IS A VERY, OVER, OVER A LONG PERIOD. IT'S BEEN A GOOD INDUSTRY, RIGHT? THE ATHLETICWEAR INDUSTRY GROWTH, YOU KNOW, YOU'RE PART OF A GROWING PIE, GENERALLY SPEAKING, PEOPLE ARE DRESSING MORE CASUALLY THAN THEY EVER HAVE IN THE PAST. SO YOU KNOW, IF YOU ARE ABLE TO GET IT RIGHT FROM A PRODUCT AND MARKETING PERSPECTIVE, YOU KNOW, THERE IS INDUSTRY GROWTH TO BE HAD AND TO, TO, TO DRIVE THE GROWTH OF YOUR BUSINESS, THEY JUST HAVEN'T BEEN ABLE TO CAPITALIZE ON IT. SO, YOU KNOW, I'M JUST HOPING THAT AT SOME POINT THEY'RE ABLE TO JUST, YOU KNOW, TURN IT AROUND, FIND, YOU KNOW, A NEW HOT PRODUCT TO, TO DRIVE THEIR BUSINESS. AND, YOU KNOW, IF THAT IS THE CASE, THEN I THINK THERE'S A VERY, VERY WIDE, GAP IN, YOU KNOW, IF YOU LOOK AT THE MARKET CAP OF UNDER ARMOR VERSUS THE MARKET CAP OF ALMOST ANY OTHER ATHLETIC, COMPANY OUT THERE, THERE'S A VERY, VERY WIDE GAP THERE. SO I WOULD THINK THAT THERE'D BE AN OPPORTUNITY FOR THE SHARES TO RERATE HIGHER, ZACH, I THINK THE OTHER QUESTION HERE IS, ESPECIALLY WITH THE RECENT MANAGEMENT SHAKEUP, IS WHETHER KEVIN PLANK IS STILL THE RIGHT GUY TO BE RUNNING THIS COMPANY. YOU KNOW, OBVIOUSLY HE KEEPS LEAVING AND THEN COMING BACK. DO YOU HAVE CONFIDENCE THAT HE I MEAN, I KNOW THAT YOU'VE GOT A SELL RATING, SO MAYBE THIS ANSWERS THE QUESTION, BUT DO YOU THINK HE SHOULD BE LOOKING FOR ANOTHER CEO? >> YES. I MEAN, I THINK HE SHOULD, I THINK IN MY OPINION, YOU KNOW, THEY NEED SOMEONE THAT KNOWS OPERATING AND HAS WORKED AT, YOU KNOW, ONE OF THE REALLY GOOD OPERATORS, WHETHER THAT BE LULULEMON OR NIKE, OR ANY OF THESE NEWER BRANDS THAT ARE DOING A REALLY GOOD JOB OF, YOU KNOW, SELLING AT HIGHER PRICES, I THINK THEY NEED YOU KNOW, I THINK THEY NEED AN OPERATING GUY OR GIRL, IN CHARGE. AND THAT'S, YOU KNOW, THAT'S MY OPINION. I THINK, YOU KNOW, HE'S HAD HIS, YOU KNOW, BACK AND FORTH OVER THE YEARS AND NOTHING HAS WORKED OUT FOR MORE THAN A YEAR OR TWO, YOU KNOW, YOU HAD 20, 21, BUT, YOU KNOW, ALL APPAREL BRANDS, DID REALLY WELL THAT YEAR. SO IT'S REALLY HARD TO, YOU KNOW, SAY THAT 2021 WAS A GOOD YEAR, BECAUSE, YOU KNOW, THEY DIDN'T EVEN THEY DIDN'T EVEN EARN A DOLLAR A SHARE. SO TO ME, IT'S JUST. YEAH, I THINK THEY NEED SOME NEW MANAGEMENT. AND I THINK PROBABLY MORE THAN JUST THE CEO, THEY PROBABLY NEED A COUPLE OF, A DIFFERENT CHANGES IN THE C-SUITE. SO. YEAH >> TOM, FINAL QUESTION TO YOU. YOU KNOW, THIS IS A IT'S A COMPANY THAT STILL HAS SOME REAL STAR POWER ATTACHED TO IT. TOM. I'M JUST I'M ON THE SITE, YOU KNOW, YOU CAN SEE STEPH CURRY, FOR EXAMPLE, ARE THEY, YOU KNOW, AS SMARTLY AND EFFECTIVELY LEVERAGING SOME OF THAT STAR POWER AS THEY COULD. TOM. AND I GUESS ALSO DOES THAT ACTUALLY MATTER AT THE END OF THE DAY TO CONSUMERS? >> STAR POWER MATTERS IF YOU HAVE GREAT PRODUCT TO GO WITH IT, SO YOU KNOW WHEN THE CURRY SHOES FIRST CAME OUT, YOU KNOW, THE FIRST TWO ITERATIONS OF THE CURRY WERE, YOU KNOW, SLAM DUNKS FOR THEM. NO, NO PUN INTENDED. BUT THEN, YOU KNOW, AS THEY KEPT PUTTING OUT MORE AND MORE, YOU KNOW, THE PRODUCT WASN'T EXACTLY GREAT. SO, YOU KNOW, THE FACT THAT THEY HAD THE STEPH CURRY HALO, YOU KNOW, IT COULD ONLY TAKE YOU SO FAR. RIGHT, YOU KNOW, I'D ALSO SAY OUTSIDE OF BASKETBALL, IT'S REALLY HARD TO FIND AN ATHLETE THAT REALLY, YOU KNOW, GENERATES A LOT OF, YOU KNOW, COMMERCIAL VOLUME, AS GREAT AS, YOU KNOW, JUSTIN JEFFERSON AND BRYCE HARPER ARE AT THEIR RESPECTIVE SPORTS. YOU KNOW, THERE AREN'T A LOT OF PEOPLE WHO ARE GOING OUT, YOU KNOW, BUYING FOOTBALL CLEATS. JUST ON A REGULAR BASIS. SO, I THINK, LIKE, YOU KNOW, IF YOU IF YOU'VE GOT THE RIGHT PRODUCT, THEN HAVING GREAT, BRAND AMBASSADORS WORKS VERY WELL, BUT IT ALL STARTS WITH PRODUCT. AND THAT'S WHAT, UNDER ARMOR HAS BEEN LACKING. >> TOM. ZACK, THAT WAS A GREAT DISCUSSION. THANK YOU BOTH FOR JOINING THE SHOW TODAY. APPRECIATE IT. THANKS FOR HAVING ME. COMING UP, THE BIDEN ADMINISTRATION TAKES ANOTHER STEP TOWARD RECLASSIFYING MARIJUANA AS A LOWER RISK SUBSTANCE. WE'LL DIVE INTO WHAT THIS MEANS FOR WEED STOCKS ON THE OTHER SIDE. STAY TUNED FOR MARKET DOMINATION COMING UP . >> CANNABIS STOCKS ARE JUMPING AFTER PRESIDENT BIDEN PUBLICLY ENDORSED THE JUSTICE DEPARTMENT'S RECOMMENDATION TO LOOSEN RESTRICTIONS ON MARIJUANA . HE POSTED A VIDEO ON X. >> TODAY, MY ADMINISTRATION TOOK A MAJOR STEP TO RECLASSIFY MARIJUANA FROM A SCHEDULE ONE DRUG TO A SCHEDULE THREE DRUG. IT'S AN IMPORTANT MOVE TOWARD REVERSING LONG STANDING INEQUITIES. >> FOR MORE, WE'RE BRINGING IN EMILY PAXI, A CO-FOUNDER OF POSEIDON, WHICH INVESTS IN CANNABIS COMPANIES. IT'S GOOD TO SEE YOU, EMILY. CLEAR SOMETHING UP FOR ME. WE LEARNED A FEW WEEKS AGO THAT THIS WAS LIKELY TO HAPPEN, RIGHT? THAT THIS RESCHEDULING WAS BEING CONSIDERED. THEN WE GOT THIS ANNOUNCEMENT TODAY AND THAT STATEMENT BY THE PRESIDENT, AND WE GOT A BIG MOVE UPWARD AGAIN. IS IT JUST THAT IT'S CONFIRMATION? WAS THERE SOME QUESTION ABOUT WHETHER IT WAS GOING TO ACTUALLY GO THROUGH. >> NO. SO I DIDN'T HAVE A QUESTION OF WHETHER OR NOT THIS WAS GOING TO GO THROUGH. BUT WE DO KNOW THAT PROHIBITIONISTS WHO ARE OUT THERE LIKE TO TRY TO POKE HOLES IN THIS PROCESS. TODAY'S STEP IS ANOTHER HISTORIC STEP MOVING FORWARD. WHAT WAS REALLY STARTED WITH THE PRESIDENT IN 2022 CALLING FOR A REVIEW OF SCHEDULING FROM HHS. THEN HHS PUT FORTH A VERY STRONG RECOMMENDATION REGARDING WHERE CANNABIS SHOULD LIVE, WHICH IS NOT AT SCHEDULE ONE, AND THEN THE DEA TOOK THE STEP TO RECOMMEND THIS. TODAY WE'RE HEARING THAT, YES, IN FACT, THIS IS BEING ACKNOWLEDGED AND THAT WE ARE GOING TO GO INTO A 60 DAY COMMENT PERIOD. SO TO ME, THIS IS JUST VALIDATION THAT THIS IS WORKING THROUGH THE PROCESS THAT IT SHOULD BE WORKING THROUGH AS EXPECTED. AND I THINK ANYTHING AROUND CANNABIS REFORM HAS BEEN VERY DIFFICULT FOR THE PAST TEN YEARS PLUS, OBVIOUSLY, AND SO ANYTHING THAT'S WORKING THROUGH AN ORDINARY PROCESS AND FOLLOWING THE STEPS AS IT SHOULD IS VERY CONFIRMATORY. AND EMILY, SO YOU CALL THIS A HISTORIC STEP. >> WHAT'S THE NEXT STEP? EMILY WHAT'S THE TIMELINE HERE? >> SO IT APPEARS WE'RE GOING INTO A 60 DAY COMMENT PERIOD, WHICH WE ARE ALL ANTICIPATING, SEEING THAT, THE FATIGUED AND BELEAGUERED PROHIBITIONISTS WHO ARE TRYING TO STILL CHALLENGE THE PROGRESS OF CANNABIS REFORM WILL COME FORWARD WITH FEAR MONGERING TACTICS AND TRY TO THROW WEAK DATA POINTS OUT. BUT THE BENEFIT OF HAVING CANNABIS REFORM AND REGULATION OVER TEN YEARS WITH ADULT USE IN THE COLORADO MARKET AND EXPANDING FROM THERE, IS THAT WE HAVE MANY , MANY DATA POINTS ACTUALLY PROVING TO A NET POSITIVE EFFECT OF LEGALIZATION AND REGULATION OF CANNABIS IN TERMS OF THE RESCHEDULING, DOES THIS ACTUALLY MOVE THE NEEDLE FOR COMPANIES BOTTOM LINES AT THIS POINT? >> IS THERE A REAL EFFECT ON BUSINESS AS IT'S DONE TODAY? >> THIS IS AN IMPORTANT STEP BECAUSE IT DOES CHANGE THE TAX CONSIDERATIONS OF THESE BUSINESSES. WE DO HAVE. AT SCHEDULE ONE, WE HAD THE 280 TAX CODE APPLIED TO OUR BUSINESSES, WHICH CREATES AN EFFECTIVE TAX RATE OF NORTH OF 70. AND WHEN YOU'RE TRYING TO GROW BUSINESSES IN A FRAGMENTED MARKET STRUCTURE LIKE WE HAVE IN THE UNITED STATES WITH PATCHWORK REGULATION AND ONLY INTRASTATE COMMERCE, IT DOES BECOME VERY CHALLENGING FOR THESE BUSINESSES. AND THERE'S BEEN A LOT OF ANALYSIS OF WHAT HAPPENS. THIS BASICALLY SET THE STAGE, ALLOW ALONGSIDE THE COMMERCE CLAUSE CHALLENGE, WHICH IS WORKING THROUGH THE JUDICIAL PROCESS RIGHT NOW, TO SAY THAT 280 IS NOT APPLICABLE TO THESE BUSINESSES. AND THAT IS REALLY IMPORTANT IN TERMS OF FLOWING THROUGH TO YOUR POINT, TO THE BOTTOM LINE, HOWEVER, RESCHEDULING ALONE DOES NOT CHANGE CERTAIN STRUCTURAL COMPONENTS TO OUR MARKETS, SUCH AS ACCESS TO THE EXCHANGES. IT DOESN'T OPEN UP YET. COMMERCIAL BANKING IN TERMS OF ALLOWING FOR CUSTODY OF THE STOCKS. AND THOSE THINGS DO IMPACT THE WAY THESE BUSINESSES TRADE, BECAUSE THEY'RE VERY THIN. NOW, SINCE THE DEA NEWS, WE'VE SEEN INCREASING VOLUMES IN THE TOP NAMES IN THE INDUSTRY, INCLUDING, FOR EXAMPLE, ASCEND WELLNESS HOLDINGS IS SEEING MORE VOLUME BASICALLY IN THE LAST FEW DAYS THAN THEY'VE SEEN IN THE PRIOR YEARS, SO IT'S INTERESTING, THERE'S DEFINITELY ATTENTION COMING TO THE SECTOR, BUT ONLY ABOUT 7% OF OUR NAMES ARE TRADED WITH INSTITUTIONAL CAPITAL. THIS COULD ALL CHANGE IF THERE ARE SOME STRUCTURAL SHIFTS, LIKE SUCH AS THE PROCESS OF MOVING THINGS THROUGH THE COURTS, OR ALSO A MEMO FROM GARLAND THAT OUTLINES AND CALLS OUT SPECIFIC THINGS AROUND COMMERCIAL BANKING AND EXCHANGES. >> AND EMILY, I'M JUST CURIOUS WHAT KIND OF RESPONSE YOU THINK YOU COULD HEAR FROM THE CRITICS. YOU KNOW, THOSE WHO AREN'T FANS OF THIS LEGALIZATION AND REGULATION, THEY'RE VERY THEY CONTINUE TO HIT THE SAME POINTS WHICH ARE ERRONEOUS AND FALSE. AND I WELCOME IT BECAUSE WE DO HAVE THE DATA TO CONTRADICT WHAT THEY'RE SAYING. SO IT USUALLY COMES IN THE FORM OF A HEAVY, FEAR BASED CAMPAIGN. WE SEE IT IN EVERY STATE WHERE LEGALIZATION IS UP ON THE BALLOT. THEY TRY TO LEAD WITH CONCERNS ABOUT KIDS HAVING ACCESS TO CANNABIS. LEGAL. REGULATED CANNABIS IS FOR 21 PLUS, AND WE HAVE THE HIGHEST COMPLIANCE RATE OF ANY INDUSTRY RIGHT NOW IN TERMS OF VALIDATING THE IDS AND THE AGES OF PEOPLE PURCHASING CANNABIS. IT ALSO TAKES IT OUT OF THE ILLICIT MARKET. IT TAKES THE WIND OUT OF THE SALES. AND THAT'S WHERE THE ACCESS FOR THE YOUTH COMES INTO PLAY. SO IF YOU SEE US COMPARED TO ALCOHOL VERIFICATION ON AGE OR TOBACCO VERIFICATION ON AGE, CANNABIS DOES NOT PLAY AROUND WITH THIS BECAUSE WE WON'T. WE HAVE TO HOLD THE BAR VERY HIGH AND MAKE SURE WE'RE PROTECTING OUR INDUSTRY. AND SO THAT'S WHY IT'S REALLY IMPORTANT TO US LEGALIZATION, REGULATION IS ABOUT 21 PLUS. IT IS NOT ABOUT KIDS AND THAT IS A DISTINCT DIFFERENCE FROM THOSE OTHER CATEGORIES OF CONSUMER PRODUCTS. >> EMILY ALWAYS LOVE HAVING YOU ON THE SHOW. THANKS SO MUCH FOR JOINING US. >> THANK YOU. >> LET'S LOOK NOW AT SOME CALLS OF THE DAY WOLFE RESEARCH REITERATING OUTPERFORM ON NVIDIA AND AMD AND RAISING ITS PRICE TARGET ON NVIDIA TO $1,200. THAT'S UP FROM $900. THIS WAS AN INTERESTING NOTE, JULIE. SO I MEAN, LISTEN, THE TEAM AT WOLFE, THEY STILL LIKE NVIDIA FOR SURE, BUT IT SOUNDS LIKE THE ANALYSTS MAKING A TACTICAL SHIFT IN PRIORITY, ADDING LISA SUES AMD TO THE WOLFE ALPHA LIST, WHICH FROM WHAT I WAS READING IS A GROUP OF STOCKS WHICH THEY THINK, LISTEN, THIS IS A GROUP WE THINK COULD SHOW BIG, MEANINGFUL OUTPERFORMANCE OVER KIND OF A 12 MONTH TIME FRAME. AND IN PART IT LOOKS LIKE NO SURPRISE. THIS IS THIS IS AI RELATED. YOU KNOW, LIKES WHAT HE HEARS FROM ABOUT AMD'S AI PRODUCT PIPELINE. >> WELL, AND A LOT OF THIS ALSO HAS TO DO WITH THE RELATIVE PERFORMANCE OF THESE TWO STOCKS. YEAH, AMD IS UP ABOUT 11% THIS YEAR. NVIDIA IS UP 92% THIS YEAR. SO THE ANALYST IS LOOKING AT THESE TWO NAMES AND SAYING WELL NVIDIA IS GREAT, BUT THAT IT'S ALREADY RISEN A LOT. THE COMPANY IS OUT WITH ITS EARNINGS NEXT WEDNESDAY AFTER THE CLOSE OF TRADING AND THE ANALYSTS SAY WE ARE NOT EXPECTING AN EXCEPTIONAL BEAT WHEN NVIDIA REPORTS. BUT WE DO ANTICIPATE A MUCH STRONGER SECOND HALF. SO THIS I THINK THE ALPHA LIST ALSO HAS TO DO WITH SORT OF, AS YOU SAID, MORE TACTICAL AND SO IF THERE'S MORE ROOM FOR UPSIDE BECAUSE ONE STOCK HASN'T GONE UP AS MUCH, IT KIND OF MAKES SENSE. AND YEAH AND A BAD VALUATION ABOUT AMD HE SAYS WE BELIEVE THE PREMIUM MULTIPLE IS WARRANTED GIVEN THAT AMD HAS, HE SAYS, CLEARLY EARNED A SEAT AT THE AI TABLE. >> JULIE. >> INDEED, A SEAT AT THE AI TABLE. OH, THAT. WE ALL SHOULD GET SOME SEATS THERE, LET'S TALK ABOUT DEERE AS WELL. THE SHARES OF THAT COMPANY SLIDING AFTER IT TRIMMED ITS FULL YEAR NET INCOME GUIDANCE, AND DEERE NOTING FURTHER SOFTENING IN GLOBAL AGRICULTURAL AND TURF DEMAND. ONE FIGURE THAT STOOD OUT TO ME, WHICH IS NOT FROM DEERE ITSELF, BUT RATHER FROM THE DEPARTMENT OF AGRICULTURE, IS THAT NET FARM INCOME IS FORECAST TO FALL ABOUT 26% THIS YEAR. THAT'S THE BIGGEST DROP WE'VE SEEN IN TWO DECADES NOW. THERE HAVE BEEN SOME BIG YEARS. THAT'S WHY IT IS SUCH A BIG DROP. THE LAST COUPLE OF YEARS HAVE BEEN BETTER, BUT NONETHELESS, YOU UNDERSTAND WHY THEY ARE NOT SETTING UP AS WELL. >> YEAH, EXACTLY. I MEAN, I WAS READING THESE REPORTS REALLY KIND OF CHALKING THIS UP TO LOWER GRAIN PRICES, WHICH OF COURSE MEANS GROWERS, FARMERS, THEY'VE GOT LESS MONEY TO BUY DEERE EQUIPMENT, I SAW DEERE EXEC SAYING WE'RE PROACTIVELY MANAGING OUR PRODUCTIONS AND INVENTORY LEVELS TO ADAPT TO DEMAND CHANGES. AND NOT SURPRISINGLY, THIS IS NOT DEERE SPECIFIC EITHER. I MEAN, THERE ARE INDUSTRY TRENDS WE'RE SEEING AGCO, CNA ALSO RIVALS. THEY REDUCE THEIR OUTLOOKS AS WELL. YEAH. >> AND I SHOULD MENTION THAT ANALYSTS WERE POSITIVE THAT DEERE IS TAKING GOOD STEPS TO YOUR POINT TO REDUCE INVENTORY AND MAKE SURE THAT THEY DON'T END UP WITH TOO MUCH PRODUCT AS THINGS AS DEMAND IS PULLING BACK A LITTLE BIT, MOVING ON THE SUPREME COURT REJECTING AN ATTEMPT TO UNDERCUT FUNDING OF THE CONSUMER FINANCIAL PROTECTION BUREAU TODAY. >> FOR MORE ON THE DECISION, WE'LL BRING IN YAHOO FINANCE'S ALEXIS KEENAN, ALEXIS HI GUYS. >> YEAH SO THIS IS A72 DECISION. AND WHAT IT DID IS IT ALLOWED THE CFPB TO REALLY STAY IN FORCE. IT'S GOING TO REMAIN AS IS. AND IT'S BEEN A REALLY CONTRARY OFFICIAL BUREAU FROM THE GET GO. YOU CAN GO BACK FOR YEARS AND SEE HOW PARTIZAN THE DEBATE IS ALONG THIS AGENCY. AND ONE OF THE REASONS IS THIS YOU HAD THESE PAYDAY LENDERS BRINGING THIS TO THE SUPREME COURT, SAYING THAT THE CFPB CFPB'S FUNDING IS UNCONSTITUTIONAL. WHY? THEY SAID, WELL, IT VIOLATES THE APPROPRIATIONS CLAUSE. AND WHAT THAT IS, IS A MANDATE THAT SAYS, FROM THE CONSTITUTION, THAT SAYS THAT CONGRESS, RIGHT, HAS THE POWER OF THE PURSE, AND THEY HAVE TO IDENTIFY SPECIFIC REASONS FOR SPENDING THE PUBLIC'S MONEY, MONEY. SO THEY HAVE TO MAKE A LAW TO SAY HOW IT'S GOING TO BE SPENT. NOW, THESE LENDERS SAY THAT BECAUSE THE BUREAU DRAWS ITS MONEY FROM THE FEDERAL RESERVE AND NOT FROM THIS DIRECT EDICT FROM CONGRESS, THAT THAT DOESN'T WORK. BUT NO, THE SUPREME COURT HERE SAYING IN THE MAJORITY THAT IT IS OKAY, THAT THAT'S ENOUGH AUTHORITY FROM CONGRESS NOW, THE CFPB TO KIND OF GO BACK AND TALK ABOUT BRIEFLY, THE THINGS IT'S TRYING TO DO, WHAT ITS MANDATE IS, IS TO TRY TO PREVENT LENDERS, BANKS, CREDIT CARD LENDERS AND AUTO LENDERS FROM PREDATORY, UNFAIR PRACTICES. SO THEY WRITE RULES, THEY ENFORCE LAWS. AND THAT WAS CREATED ALL THE WAY BACK IN 2010. IN THE WAKE OF THE 2008 FINANCIAL CRISIS. SO ITS EXISTENCE, THOUGH, ALWAYS BEEN A THORNY ISSUE. REPUBLICANS SOME, NOT ALL. THERE'S SOME REPORTING OUT THERE THAT SAYS APPROXIMATELY 75% OF REPUBLICAN LAWMAKERS DO SUPPORT THE AGENCY'S EXISTENCE, BUT OTHERS SAYING THAT, LOOK, NOT ALL FEES ARE BAD. EVEN THE GOVERNMENT THE IRS CHARGES FEES. SO WHY CAN'T THE PUBLIC SECTOR DO IT TOO? BUT LOOKS LIKE THE BUREAU IS GOING TO BE ABLE TO CONTINUE TO DO ITS JOB FOR NOW. FOR NOW, NOT WITHOUT PUSHBACK. OF COURSE. THERE WILL BE OTHER STABS AT THIS AGENCY. >> ALEXIS, THANKS A LOT. APPRECIATE IT. WELL, AFTER A STRING OF HOT REPORTS, APRIL'S CPI PRINT SHOWED INFLATION COOLED SLIGHTLY. IT WAS A WELCOME SIGN FOR INVESTORS. WHAT DOES IT MEAN FOR YOUR PORTFOLIO? WE'LL TELL YOU HOW TO PLAY IT NEXT . >> INTEREST IN ELECTRIC VEHICLES. HITTING A SPEED BUMP IN 2024. THAT'S ACCORDING TO A NEW REPORT FROM AUTOMOTIVE RESEARCH FIRM J.D. POWER. YAHOO FINANCE'S PRICE SUMERIAN JOINS US HERE WITH THE DETAILS. PRICE YEAH YEAH BIG HEADLINE HERE. >> FOR THE FIRST TIME IN THREE YEARS EV BUYING SENTIMENT DROPPED. AND THEY'VE BEEN DOING THIS SURVEY SINCE 2021. IT'S BEEN PICKING UP USUALLY THEY'RE IN A VERY LIKELY OR SOMEWHAT LIKELY TO BUY A EV THAT WENT DOWN. SO, THIS YEAR, IN THE FIRST THREE MONTHS OF YEAR, THEY DID THIS POLLING, 24% VERY LIKELY TO BUY, DOWN FROM 26. AND THEN OF THOSE, THE BROADER LIKELY TO BUY 58, DOWN FROM 61. SO, YOU KNOW, NOT THAT MUCH, BUT IT'S STILL A TREND THAT'S THAT'S REVERSING HERE, CHIEF COMPLAINTS BEING CHARGING HIGH PRICES RANGE ANXIETY WHERE AM I GOING TO CHARGE THOSE THINGS THAT PEOPLE COMPLAIN ABOUT. NOT NOT SURPRISING HERE. YOU KNOW THE TESLA SUPERCHARGING SORT OF ISSUES RECENTLY NOT HELPING PROBABLY PEOPLE SORT OF OPINIONS THERE. BUT J.D. POWER SAYS THERE IS AN OPPORTUNITY HERE. 40% OF RESPONDENTS SAY THEY DON'T HAVE A SOLID UNDERSTANDING OF INCENTIVES. RIGHT. SO STATE, FEDERAL PRICE CUTS, NEW INCENTIVES WERE FORD SAYS, HEY, TRADE IN YOUR TESLA. WE'LL GIVE YOU 1500 BUCKS, YOU KNOW, SO THOSE THINGS CAN MAKE EVS CHEAPER, LIKE SIGNIFICANTLY CHEAPER IF THERE'S MORE EDUCATION THERE, I GUESS. YEAH >> AND JUST QUICKLY, THE IRONY ABOUT THE RANGE ANXIETY WORRY IS THAT, YES, YOU DO HAVE THE SUPERCHARGER ISSUE, BUT THE OVERALL THE CHARGER NETWORK IS A HECK OF A LOT BETTER THAN IT USED TO BE. RIGHT YEAH. >> AND MOST PEOPLE KIND OF OVERESTIMATE HOW MUCH THEY'RE GOING TO DRIVE IN GENERAL. RIGHT? SO IT'S LIKE THEY'RE JUST FEARING THE ROAD TRIP WHERE I CAN'T FIND A CHARGING THING. AND LOOK, THAT'S HAPPENED TO ME BEFORE, WHERE I'VE BEEN SORT OF FREAKED OUT ABOUT WHERE CAN I CHARGE? SO IT DOES HAPPEN. BUT MOST PEOPLE DRIVE SOMEWHERE LIKE 30 MILES A DAY. YOU DON'T NEED TO WORRY ABOUT RANGE SOCIETY, BUT YOU'RE ABSOLUTELY RIGHT ABOUT THE FACT THAT NETWORKS HAVE BEEN GROWING. BUT WE DON'T SEE THEM AS MUCH AS WE SEE. LET'S SAY A GAS STATION. YOU'RE NEVER FREE. FREAKED OUT ABOUT RUNNING OUT OF GAS, RIGHT? SO THAT'S SORT OF WHERE WE NEED TO BE. >> I THINK THAT IS TRUE. ALL RIGHT. THANKS, BOSS. APPRECIATE IT. >> WELL, DATA SHOWED INFLATION EASED SLIGHTLY IN APRIL WITH CORE CPI, THE CONSUMER PRICE INDEX RISING AT THE LOWEST ANNUAL LEVEL SINCE 2021. THE LATEST DATA WELCOME. READ AFTER THREE STRAIGHT MONTHS OF HOTTER THAN EXPECTED PRINTS. SO WHERE ARE THE OPPORTUNITIES FOR INVESTORS? WE'RE LOOKING AT HOW TO NAVIGATE THE BIG PICTURE WITH THE YAHOO FINANCE PLAYBOOK. JOINING US NOW IS JEREMY BRYANT, SENIOR PORTFOLIO MANAGER AT GRADIENT INVESTMENTS, AND DAVID MILLER, CATALYST FUNDS CO-FOUNDER, CHIEF INVESTMENT OFFICER AND SENIOR PORTFOLIO MANAGER. GUYS THANKS SO MUCH FOR BEING HERE. DAVID, I'M GONNA START WITH YOU. YOU'RE SITTING RIGHT NEXT TO ME HERE IN STUDIO, SO AS WE LOOK AT THIS INFLATION PICTURE, HOW MUCH ARE YOU FACTORING THAT INTO YOUR STRATEGIES THAT INFLATION SEEMS TO BE STICKING AROUND? DO YOU THINK OF IT? YOU HAVE TO HEDGE IT. OR YOU WANT COMPANIES THAT ARE TAKING ADVANTAGE KIND OF HOW DO YOU WORK IT INTO YOUR INVESTMENT PHILOSOPHY? >> YEAH. SO I GUESS MY PHILOSOPHY IS THE FED IS SAYING THAT THEY HAVE THIS 2% TARGET AND EVEN WITH CPI COMING DOWN A BIT, IT STILL DOESN'T LOOK LIKE IT'S THAT REALISTIC. GIVEN THAT THE FEDERAL GOVERNMENT IS RUNNING A TRILLION AND A HALF DOLLARS DEFICIT AND IT DOESN'T SEEM TO MATTER TOO MUCH WHICH PARTY WINS THAT DEFICIT'S LIKELY TO CONTINUE? IT SEEMS PRETTY CLEAR TO ME AT LEAST, THAT MORE LIKELY THAN NOT, WE'RE GOING TO HAVE HIGHER FOR LONGER. AND WHAT THAT REALLY MEANS IS HIGHER FOR LONGER IS ACTUALLY VERY GOOD FOR COMPANIES WHERE THEY HAVE VERY HIGH MARGINS. IF YOU'RE THINKING ABOUT A COMPANY LIKE A MASTERCARD OR A VISA INFLATION IS GREAT FOR THOSE COMPANIES BECAUSE THAT'S GOING TO, YOU KNOW, PUT MORE THROUGH THEIR NETWORKS AND THAT FLOWS RIGHT DOWN TO THE BOTTOM LINE. BUT IF YOU'RE IN A COMPANY WHERE LABOR COSTS ARE REALLY SIGNIFICANT AND MARGINS ARE TIGHTER, IT'S A NET NEGATIVE. SO WE'RE REALLY FOCUSING ON THOSE COMPANIES THAT ARE IN MONOPOLISTIC OLIGOPOLISTIC TYPE POSITIONS WITH REALLY HIGH MARGINS. THE MASTERCARD'S, THE VISA'S, THE MICROSOFTS, COMPANIES OF THAT NATURE. >> JEREMY, WE'LL START KIND OF BIG PICTURE. SAME QUESTION TO YOU. YOU KNOW, YOU'VE SEEN OBVIOUSLY INFLATION COOL. BUT YOU KNOW KIND OF STALLED OUT HERE. IT'S PROVEN STICKIER THAN MAYBE SOME PEOPLE IMAGINED. HOW DO YOU THINK ABOUT IT JEREMY? HOW DOES IT PLAY INTO WHERE YOU DO OR DON'T WANT TO PUT MONEY TO WORK? >> YEAH, I'M GOING TO AGREE AND DISAGREE A LITTLE BIT. I'M GOING TO START BY, DISAGREEING. I THINK ACTUALLY THE MATH THAT WORKS IN OUR FAVOR TO WHERE THE NUMBERS ARE GOING TO COME DOWN, ARE WE GOING TO GET TO 2% ANYTIME SOON? PROBABLY NOT, BUT I THINK WE'RE STILL GENERALLY TRENDING IN THE CORRECT DIRECTION. BUT WHERE I WOULD AGREE WITH THEM IS THE NAMES HE MENTIONED. I THOUGHT THOSE WERE PHENOMENAL NAMES, BUT THOSE ARE PHENOMENAL NAMES. EVEN IN A LOWER OR HIGHER INFLATION ENVIRONMENT, RIGHT? MICROSOFT, VISA, MASTERCARD, THESE JUST HAVE REALLY, REALLY GOOD BUSINESSES. SO I MEAN THEY'RE ALWAYS THEY CAN PASS PRICING THROUGH AND INFLATION IS HIGH, BUT THEY'RE ALSO STICKY AND VERY HIGH MOAT BUSINESSES EVEN IN BAD TIMES. AND IN LOW INFLATION TIMES TOO. SO WHILE I DISAGREE WITH WHERE HE'S COMING FROM ON THE INFLATION SIDE, I THINK THE COMPANIES ARE ACTUALLY REALLY RELATIVELY GOOD. WE'RE DOING THE SAME THINGS WE'RE ALWAYS DOING. WE'RE TRYING TO LOOK FOR RELATIVE VALUATION OPPORTUNITIES AND TO BE COMPLETELY HONEST, RIGHT NOW, WHERE WE SEE THAT MOST IS IN HEALTH CARE, WE THINK HEALTH CARE HAS BEEN KIND OF LEFT BEHIND HERE A LITTLE BIT. AND GIVEN, YOU KNOW, IF WE'RE IN AN INFLATIONARY ENVIRONMENT, MY CHANCES ARE I WOULD GUESS THAT PROBABLY HEALTH CARE IS DRIVING SOME OF THAT AS WELL, IS THAT THOSE PRICES DON'T TEND TO COME DOWN MUCH. SO THE VALUATION AND THE RELATIVE VALUATIONS TO THE MARKET IN SOME OF THESE HEALTH CARE NAMES, WHETHER YOU'RE TALKING DEVICES LIKE MEDTRONIC AND ABBOTT OR SERVICES LIKE CIGNA, THESE COMPANIES ARE AT RELATIVE DISCOUNT VALUATIONS IN THEIR EARNINGS GROWTH PROFILES ARE PRETTY GOOD AT MID TO HIGH SINGLE DIGIT AND SOMETIMES EVEN LOW DOUBLE DIGIT EARNINGS GROWTH, AND SO DAVID, WHEN YOU YOU HEAR WHAT HE SAID, I MEAN WOULD YOU ALSO SORT OF GET DEFENSIVE AT ALL IN THIS ENVIRONMENT AS WELL. >> OR LOOK FOR COMPANIES WITH MORE DEFENSIVE CHARACTER STICKS. >> WELL, SO HEALTH CARE IS DEFENSIVE AND I AGREE AS WELL. YOU KNOW WE ACTUALLY LIKE SOME OF THE MORE EXPENSIVE NAMES IN HEALTH CARE. SOME OF THE GLP ONE TYPE NAMES. YOU KNOW, IT SEEMS LIKE THERE'S VERY GOOD CHANCE, GIVEN THE DATA COMING OUT ON GLP ONE, THAT YOU'LL CONTINUE TO SEE VERY SIGNIFICANT REVENUE AND EARNINGS EXPANSION AT THOSE NAMES, THOSE NAMES. SO THAT'S WHERE I REALLY LIKE THE SWEET SPOT WHERE YOU GET THE GROWTH, BUT IT'S DEFENSIVE GROWTH AND HIGH FREE CASH FLOW IS HIGH MARGINS. AND YOU KNOW I THINK THOSE COMPANIES, WHETHER IT BE LIKE A UNITED HEALTH CARE OR THE GLP ONE TYPE NAMES, THEY'RE BOTH VERY GOOD PLACE TO BE. AND JEREMY, BACK TO YOU. >> YOU KNOW, YOU MENTIONED HEALTH CARE. I ALSO WANT TO GET YOUR TAKE, JEREMY, ON THE CONSUMER, OBVIOUSLY, YOU KNOW, WE HEARD FROM WALMART I KNOW THAT WAS A REPORT YOU WERE WATCHING. WHAT WERE YOUR TAKEAWAYS THERE FROM WALMART? JEREMY. AND KIND OF BROADLY, HOW ARE YOU THINKING ABOUT THE CONSUMER, HOW HEALTHY, HOW RESILIENT DOES THAT CONSUMER LOOK AND HOW DO YOU WANT TO PLAY THAT? >> YEAH, I THINK THE INITIAL SENTIMENT NOW, YOU KNOW, THERE WAS A LOT OF CONCERN. RIGHT. THE S&P 500 MENTIONED LOWER INCOME CONSUMERS MORE FREQUENTLY THAN THEY HAD IN SEVERAL YEARS, SO THERE WAS A LOT OF CONCERN COMING INTO THAT. AND YOU'RE STARTING TO SEE THAT THROUGH RETAIL SALES DATA AND ALL THAT. AND THEN WALMART KIND OF PUSHED THAT ASIDE. RIGHT. THEIR NUMBERS WERE PHENOMENAL, RIGHT? IT WAS REALLY GOOD REPORT FROM A PERSPECTIVE OF WHAT YOU'RE SEEING, I THINK IS A TRANSITION OF WE'RE NOT STOPPING SPENDING, WE'RE JUST SPENDING IN DIFFERENT AREAS. RIGHT. AND SO THE BIGGEST CONCERN THAT WE HAD WAS RESTAURANTS. WE WERE PAYING A LOT OF ATTENTION. AND FRANKLY, THEY WERE VERY SOFT. STARBUCKS WAS NOT A GOOD QUARTER AT ALL. MCDONALD'S WAS SOFT. YUM WAS SOFT. WE WERE LOOKING AT THAT AND SAYING, DOES THIS MEAN THE CONSUMER IS KIND OF COMPLETELY PULLING BACK JUST BECAUSE THOSE TEND TO BE AREAS WHERE EVEN LOWER INCOME CONSUMERS KIND OF STICK AND SPEND, WE WERE LOOKING AGGRESSIVELY TOWARDS WALMART AND SEEING HOW THEY WOULD REACT TO THAT AND HOW THEY NUMBERS LOOKED. AND THEN THEY CAME OUT AND SAID, NOPE, THINGS ARE GOING GREAT. SO FROM OUR SIDE, WE'RE SEEING MAYBE A PIVOT OF SPENDING RATHER THAN A PULLBACK OF SPENDING. AND THAT CAN GENERALLY BE JUST FINE. IT'S GOING TO HURT SOME COMPANIES. IT'S GOING TO HELP SOME COMPANIES. BUT IF CONSUMERS CONTINUE TO SPEND BECAUSE THEY FEEL LIKE THEY HAVE A JOB OR CAN GET ONE IF THEY NEED ONE, THAT IS EXCELLENT FOR OUR ECONOMY, THAT IS EXCELLENT FOR OUR GROWTH, AND I THINK IT'S EXCELLENT FOR OUR STOCK MARKETS AS WELL. >> DAVID, IS THAT KIND OF WHY YOU'RE LOOKING YOU WOULD LOOK AT SOMETHING LIKE A VISA THAT IS SORT OF WHERE YOU SPEND AGNOSTIC AND JUST GENERALLY SEE THAT PEOPLE ARE SPENDING. >> YEAH. WHEN YOU THINK ABOUT IT, A COMPANY, WHETHER IT BE VISA OR MASTERCARD, I LOOK AT THEM ESSENTIALLY AS THE SAME BUSINESS. IT'S INCREDIBLY HARD TO DISPLACE THOSE BUSINESSES. IT'S INCREDIBLY UNLIKELY THAT MORE MONEY WON'T CONTINUE TO MOVE FROM CASH TO CREDIT CARDS. IT'S VERY UNLIKELY THAT WE WON'T SEE INFLATION. SO ALL OF THOSE THINGS ARE GREAT TO BOTH VISA AND MASTERCARD, AND THEY HAVE GREAT MARGINS FOR EVERY INCREMENTAL DOLLAR OF REVENUE. >> AND YOU DON'T THINK WE'LL SEE ANY KIND OF OVERALL WEAKNESS IN CONSUMER SPENDING AND THE MONEY THAT PEOPLE ARE PUTTING THROUGH THOSE NETWORKS? >> YEAH, I THINK AS LONG AS YOU SEE UNEMPLOYMENT NUMBERS STAY AS LOW AS THEY ARE, WE REALLY SHOULD SEE THAT STRENGTH CONTINUE. BUT, YOU KNOW, I THINK THERE'S OTHER WAYS TO BENEFIT FROM THOSE TYPES OF PHENOMENONS. LIKE YOU CAN LOOK AT CURRENCIES, YOU CAN BORROW MONEY AT A 0% INTEREST RATE TODAY IN JAPAN. TAKE A MILLION BUCKS FROM JAPAN, LEND IT IN THE US AND GET 5.3. THERE'S A LOT OF WAYS THAT YOU CAN BENEFIT FROM IT THAT AREN'T JUST NECESSARILY EQUITIES. >> AND JEREMY, FINALLY, YOU KNOW, WE TALKED WALMART. BUT ANOTHER BIG REPORT THIS WEEK I KNOW YOU'RE WATCHING WITH CISCO AND OBVIOUSLY STILL SEEN AS I THINK A BELLWETHER FOR IT SPENDING. WHAT DID YOU MAKE OF THAT REPORT JEREMY. AND DID THAT KIND OF IN ANY WAY IMPACT OR INFLUENCE WHERE YOU WANTED TO PUT MONEY TO WORK IN THE TECH SECTOR? >> YEAH, I THINK MY BIGGEST TAKEAWAY SO I'M LOOKING AT CISCO AS A BELLWETHER FOR EVERYTHING OUTSIDE OF I. RIGHT, BECAUSE THAT, YOU KNOW, THEY TEND TO PLAY IN THOSE SPACES AND, YOU KNOW, THERE MIGHT BE SOME INFRASTRUCTURE AND THINGS THAT YOU HAVE TO SPEND. BUT REALLY, PEOPLE AREN'T LOOKING TO CISCO AS AN ARTIFICIAL INTELLIGENCE PLAY, AT LEAST NOT AT THIS POINT RIGHT NOW. AND SO EVERY DOLLAR OF CAPEX, IF YOU WILL, THAT WE'VE HEARD, TALKED ABOUT AMONGST THE LARGE ENTERPRISE CONSUMERS AND SPENDERS IN THE SPACE IS GOING TOWARDS ARTIFICIAL INTELLIGENCE. SO I WANTED TO SEE WHAT CISCO SAID WITH REGARD TO EVERYTHING ELSE AND EVERYTHING ELSE STILL AT THIS POINT LOOKED A LITTLE SOFT TO US. I MEAN, THEY BROUGHT THEIR NUMBERS DOWN, OR AT LEAST THE GUIDANCE WAS A LITTLE SOFT OF EXPECTATIONS. AGAIN, IT POPPED 4% AFTER MARKET, WHICH I WAS A LITTLE SURPRISED BY, BUT NOW IS A MUCH MORE WHAT I WOULD CALL A RATIONAL ARGUMENT BASED UPON WHAT THEY SAID AND WHAT THEY ANNOUNCED. SO OUR BIGGEST TAKEAWAY ON THAT IS IF YOU ARE NOT IN ARTIFICIAL INTELLIGENCE OR SOME WAY IN THAT VALUE CHAIN AT THIS POINT RIGHT NOW, YOUR BUDGETS ARE PROBABLY GOING TO BE THE SAME TO SMALLER GOING FORWARD. SO YOU HAVE TO BE CAREFUL THERE AND YOU HAVE TO PICK AND CHOOSE YOUR BATTLES ABOUT WHO ACTUALLY BENEFITS FROM THIS TYPE OF SPEND, BECAUSE THOSE DOLLARS ARE ALLOCATING AGGRESSIVELY TOWARDS ONE THING AND BEING TAKEN AWAY FROM OTHER AREAS. AND I THINK, FRANKLY, CISCO IS ONE OF THOSE AREAS. IT'S BEING TAKEN AWAY FROM. >> ALL RIGHT, JEREMY, DAVID, THANK YOU GUYS BOTH FOR JOINING US TODAY. APPRECIATE IT. >> THANK YOU. >> WHILE WE'RE WRAPPING UP TODAY'S MARKET DOMINATION, DO NOT GO ANYWHERE. WE'VE GOT YOU COVERED WITH ALL THE ACTION FOLLOWING THE CLOSING BELL, INCLUDING THE LATEST EARNINGS FROM APPLIED MATERIALS. STAY TUNED FOR MARKET DOMINATION OVERTIME ON THE OTHER SIDE. >> THERE'S THE CLOSING BELL ON WALL STREET. AND NOW IT IS MARKET DOMINATION OVER TIME. LET'S GET YOU UP TO SPEED ON THE ACTION FROM TODAY'S SESSION, SPONSORED BY TASTY TRADE. LET'S START WITH WHERE THE MAJOR AVERAGES ENDED. WE TOUCHED DOW 40,000 EARLIER IN THE DAY BETWEEN 10 AND 11 A.M, AND THEN WE DIDN'T STAY THERE. SO DOWN ON THE DAY WHEN ALL WAS SAID AND DONE, NOT REPEATING THE RECORD CLOSE OF YESTERDAY FOR ALL THREE MAJOR AVERAGES, THE DOW ENDING THE DAY DOWN ABOUT 38.5 POINTS AS THINGS LOST STEAM, THE S&P 500 OFF ABOUT A FIFTH OF 1% AND THE NASDAQ DOWN A QUARTER OF 1. IF WE LOOK AT THE DOW COMPONENTS TO SEE KIND OF WHAT HAPPENED HERE AND WHAT DRAGGED THINGS DOWN, I'M GOING TO EQUAL WEIGHT IT. JUST TO GIVE US A LOOK HERE, CISCO FALLING THE MOST AFTER ITS NUMBERS. ALTHOUGH INITIALLY THE SHARES WERE HIGHER. CATERPILLAR DOWN 2.5. HOME DEPOT AMAZON AND SALESFORCE ROUNDING OUT SOME OF THE WEAK PERFORMERS. WALMART NUMBER AND THE STOCK RISING AFTER ITS EARNINGS WAS NOT ENOUGH TO SALVAGE THE DOW HERE. AND THEN I ALSO WANT TO TAKE A LOOK AT THE SECTORS WITHIN THE S&P 500. WE HAD MATERIALS DISCRETIONARY INDUSTRIALS, SOME OF THE WORST PERFORMERS. BIG INCREASE IN CONSUMER STAPLES. BUT AGAIN THAT WAS NOT ENOUGH TO SALVAGE THE OVERALL PERFORMANCE. >> JOSH JULIE STOCKS CLOSING OFF THE HIGHS OF THE SESSION. WITH THE DOW BRIEFLY PASSING 40,000 FOR THE FIRST TIME EVER. JOINING US NOW WITH TAKEAWAYS FROM TODAY'S TRADING DAY IS YAHOO FINANCE'S VERY OWN JARED BLIKRE JARED THANK YOU. >> WELL LET'S GO TO THE WI-FI INTERACTIVE I WANT TO START WITH THE MEME TRADE THAT'S FALTERING SINCE YESTERDAY WE'VE SEEN GAMESTOP. AND THAT'S DOWN 30% TODAY. AND AMC THIS LITTLE BOX HERE THAT'S DOWN 15. AND IN FACT OVER THE LAST TWO DAYS YOU CAN SEE GAMESTOP DOWN OVER 40. AMC DOWN OVER 30. BUT IF I TURN THIS TO A FOUR DAY LOOK, AS I'VE BEEN DOING, STILL A LOT MORE GREEN THAN RED, AND YOU CAN SEE AMC AND GAMESTOP HOLDING ON TO GAINS OF MORE THAN 50. ALTHOUGH THOSE CLOSING IT WAS PRETTY NEAR 100% ON THE OPEN. SO DEFINITELY LOSING STEAM HERE. BUT I WANT TO HIGHLIGHT ANOTHER TRADE THAT IS DOING WELL IN MAY. AND FOR ALL THE TALK ABOUT NVIDIA, THIS IS CALLED EDGE.I. AND THESE ARE THE COMPANIES THAT ARE PROCESSING DATA CLOSER TO THE SOURCE, SO THEY DON'T HAVE TO INUNDATE AND TRANSMIT ALL THAT DATA TO A SERVER FARM SOMEWHERE AND GET IT BACK. WHAT YOU NOTICE HERE IS APPLE. APPLE HASN'T REALLY PARTICIPATED MUCH, I MISS IT. IT'S ALSO THE BIGGEST ELEPHANT IN THE ROOM, MAYBE THE ONLY ELEPHANT, BUT HERE'S AN EQUAL WEIGHT. WE CAN ALSO SEE QUALCOMM. THAT'S THIS IS MONTH TO DATE. SO WE SEE ACTUALLY LET ME SHOW YOU MONTH TO DATE. THERE WE GO. THE NUMBERS GET A LITTLE BIT BETTER. CIRRUS UP 26% DELL UP 17 QUALCOMM 16. AND SO WE ALSO HAVE ARM APPLE AND SEAGATE TECHNOLOGIES IN THERE. SO THIS IS A TRADE IN I TRADE THAT IS ALREADY DOING WELL IN THE MONTH OF MAY. AND MEANWHILE NVIDIA KIND OF STUCK IN THAT MULTI-MONTH RANGE. >> YEAH. >> WHAT ARE YOU LOOKING FOR. AND WE ACTUALLY TALKING BEFOREHAND JARED ABOUT NEXT WEEK WITH NVIDIA AND THE LEVELS YOU'RE WATCHING. >> YOU KNOW 750 IS A BIG ONE TO THE DOWNSIDE. >> AND THEN WE HAVE THE RECORD HIGHS I DON'T KNOW THAT OFF OFFHAND HERE. BUT I THINK 750 IF THERE IS SOME KIND OF A DISAPPOINTMENT, WE'RE GOING TO SEE THE WE'RE GOING TO SEE NVIDIA COME DOWN TO MEET THAT. AND LET ME JUST LET ME JUST PUT A CHART ON REAL QUICK. I DO HAVE ON THE WI-FI INTERACTIVE HERE IS NVIDIA. AND LET ME SHOW YOU HERE'S THE YEAR TO DATE. WE'VE JUST KIND OF STALLED OUT AND HERE ARE THESE HIGHS 901,000 SOMETHING IN THERE. SO MY POINT WAS WE COULD GO DOWN TO 750 IF IT'S NOT FAVORABLE. AND IF WE PUNCH ABOVE WELL GUESS WHAT. PROBABLY A NEW LEG THAT WE HAVE TO THE UPSIDE. >> AND IT'S ALREADY UP 90% YEAR TO DATE ALREADY. YEAH. ALREADY, THE MEME STOCK. WELL, WE HAD SOME FUN EARLIER IN THE WEEK, DIDN'T WE? AND NOW THINGS ARE KIND OF FADE, CONTINUE TO FADE RIGHT? >> YEAH, I DON'T HAVE A LOT TO ADD TO THE MEME STOCK THING. >> I THINK IT'S JUST KIND OF FALTERED OVER THE LAST TWO DAYS. STILL HOLDING ON TO SOME GAINS HERE. WHAT I'M INTERESTED IS WHERE THE HOT MONEY IS FLOWING AND IF WE LOOK, LET'S GET A FOUR DAY LOOK ON THE WI-FI INTERACTIVE. THESE ARE MY LEADERS AND SENTIMENT MARKERS. YOU'LL NOTICE IN THE UPPER LEFT OVER THE LAST FOUR DAYS GBTC THAT'S MY BITCOIN PROXY. SO BITCOIN HAS BEEN SEEING SOME OF THOSE EDGE FLOWS. DIFFERENT USE CASE FOR EDGE HERE. CAN THIS FLYING THAT'S YOU KNOW THE ARE WE EVER GOING TO GET THAT BILL PASSED IN CONGRESS. WE'LL SEE. OR THE RECLASSIFICATION. BUT WE ALSO HAVE CHINESE STOCKS. THOSE HAVE BEEN DOING VERY WELL. IN FACT CHINA STOCKS ARE THE MOST OVERBOUGHT. IF YOU LOOK AT THE FXI ETF, MOST OVERBOUGHT SINCE 2021. THAT WAS A PEAK. WE ARE NOWHERE NEAR THE PEAK. SO THAT HAS POTENTIAL ROOM TO RUN EVEN THOUGH IT'S SHORT TERM OVERBOUGHT. AND THEN HERE'S UNPROFITABLE TECH ARK INVEST. SO THE FRINGE PART OF THE MARKET EVEN IF IT'S NOT GOING INTO MEME STOCKS IT LOOKS LIKE IT'S GOING SOMEWHERE. >> MOMENTUM TRADE GOING SOMEWHERE. THANKS SO MUCH JARED. APPRECIATE IT. WE HAVE EARNINGS OUT RIGHT NOW FROM APPLIED MATERIALS. THAT COMPANY REPORTING EARNINGS PER SHARE OF $2.09. THAT'S $0.10 ABOVE ESTIMATES AS SECOND QUARTER NET SALES AT 6.6 5,000,000,006.52 BILLION IS WHAT WAS ESTIMATED HERE IN THE COMPANY. GIVEN A RANGE FOR THIRD QUARTER NET SALES OF 6.25 TO $7.05 BILLION, ANALYSTS HAVE BEEN LOOKING FOR $6.59 BILLION, SO, IT LOOKS LIKE THE SHARES ARE NOT DOING A HECK OF A LOT AT THE MOMENT IN TERMS OF YEAR TO DATE. THEY ARE UP ABOUT 33% HERE. JOSH. >> YEAH, IT'S HAD A TREMENDOUS RUN. I MEAN, IT'S ABOUT 30% THIS YEAR. IT'S UP AROUND 80% OVER THE PAST 12 MONTHS. SO IT WAS REAL STRONG HEADING INTO THE PRINT. AND OBVIOUSLY YOU CARE ABOUT THIS NAME BECAUSE THEY'RE A BIG, BIG MAKER OF CHIP MAKING EQUIPMENT. SO THEY SUPPLY NAMES LIKE TSMC, INTEL, SAMSUNG. I MEAN YOU REALLY NAME IT. AND INVESTORS OBVIOUSLY THEY LIKE TO HEAR GOOD THINGS FROM AMAT BECAUSE THEY WILL TAKE THAT AS SORT OF AN INDICATION OF BETTER TIMES AHEAD FOR THE CHIP INDUSTRY. AND OBVIOUSLY WHEN YOU TALK ABOUT YOU TALK CHINA BECAUSE AMAT IS RESTRICTED IN WHAT IT CAN SHIP TO CHINA, CHINA WOULD LIKE TO BE A BIG GLOBAL TECH POWERHOUSE. THE BIDEN ADMINISTRATION HAS OTHER PLANS. >> YES, INDEED IT DOES. AND A LOT OF THE COMPANY'S SALES COME FROM OUTSIDE OF THE US, APPLIED MATERIALS JUST COMING OUT AS WE TALKED ABOUT AND REPORTING THOSE BETTER THAN EXPECTED RESULTS ON THE TOP AND BOTTOM LINE, BUT THE SHARES NOT DOING MUCH AT THE MOMENT. JOINING US NOW IS COREY JOHNSON FOR FUTURUM CHIEF MARKET STRATEGIST. AND HE'S NOT JUST EXACTLY AND HE'S NOT JUST JOINING US. HE'S JOINING US HERE IN STUDIO RIGHT HERE IN NEW YORK CITY. VERY EXCITED TO HAVE YOU. >> I'VE BEEN IN STUDIOS WITH YOU GUYS BEFORE. YES, BUT IN IN NEW YORK CITY, SAME CITY. >> THIS IS DIFFERENT. >> DIFFERENT STUDIO. YES IT IS. EXACTLY. >> SO LET'S TALK ABOUT AMAT, SHALL WE? YEAH, WITH THAT COMPANY COMING OUT AND THE MARKET REACTION IS KIND OF MESS. >> WELL, I MEAN, THE GUIDANCE IS YOU COULD DRIVE A TRUCK THROUGH THAT GUIDANCE. I DON'T KNOW HOW THAT'S GUIDANCE. I MEAN, REALLY LIKE SAYING IT'S GOING TO BE SOMEWHERE NEAR SOMETHING UP OR DOWN. YOU KNOW, THE NUMBERS THEY PUT UP HERE TODAY, JUST NOW ARE GOOD, THE BOTTOM LINE MUCH BETTER THAN EXPECTED. BUT THAT'S WHAT THESE GUYS DO. THEY ALWAYS, YOU KNOW, LOWER YOUR EXPECTATIONS OF WHAT THEY'RE GOING TO DO AND THEN BEAT IT, I'M GOING TO DIG THROUGH THE RELEASE A LITTLE BIT MORE, BUT WHAT'S REALLY INTERESTING IS THAT THEY'VE GOT LOTS OF DIFFERENT PIECES OF THEIR BUSINESS, AND THAT THEIR FOUNDRY SERVICES BUSINESS HAS ACTUALLY BEEN DOING QUITE WELL, WELL, SOME OF THE OTHER BUSINESSES HAVE NOT. AND SO, YOU KNOW, THESE NUMBERS ARE JUST ABOUT FLAT FROM WHERE THEY WERE A YEAR AGO. AND WE TALKED SO MUCH ABOUT EXPECTATIONS. WHEN WE LOOK AT THE MARKET. BUT COMPANIES THAT GET BIGGER ARE BETTER THAN COMPANIES THAT GET SMALLER. CISCO IS A CASE IN POINT. YESTERDAY CISCO TRADING UP AFTER THE CLOSE WHEN THEY PUT UP A PRINT THAT WAS 13% LOWER THAN IT HAD BEEN THE PREVIOUS YEAR, THE NETWORKING SEGMENT WAS DOWN 27% FOR A COMPANY THAT SELLS NETWORKING EQUIPMENT. SO THE MARKET WAS BRIEFLY FOOLED BY THAT. BUT A SHRINKING COMPANY? NOT A GOOD THING, GROWING COMPANY, GOOD THING. AND I THINK THE THING WE WANT TO HEAR FROM AMAT ON THE CALL IS A REAL UNDERSTANDING OF WHAT'S HAPPENED, IS, IS THE TURNAROUND HAPPENING IN SEMICONDUCTORS ACROSS THE WORLD, BECAUSE WE'VE GOTTEN REALLY MIXED RESULTS FROM DIFFERENT SEMI COMPANIES OVER THE COURSE OF THE LAST FEW WEEKS. >> YEAH. >> WHAT ABOUT YOU FIRST, JULIE AND I TALKING ABOUT CHINA HERE, YOU KNOW, AND AMAT CARY, LIKE A LOT OF NAMES, I MEAN, RESTRICTED WHAT THEY CAN SHIP TO CHINA. AND JUST. I WANT TO GET YOUR THOUGHTS ABOUT THIS GENERAL SORT OF TENSION. I MEAN, CHINA WOULD LIKE TO BE THIS GLOBAL TECH GIANT, YOU KNOW, BE A LEADER IN ALL KINDS OF INDUSTRIES, LIKE I, BIDEN MINISTRATION. YOU KNOW, I THINK IT'S IT SEEMS TO BE THE ONE THING REPUBLICANS AND DEMOCRATS CAN KIND OF UNITE ON. WE'D RATHER NOT SEE CHINA BE A TECH GLOBAL POWER. HOW ARE YOU THINKING ABOUT THIS? >> SO WHAT'S REALLY INTERESTING IS THAT CHINA HAS REACTED TO ITS INABILITY TO GET THE BEST EQUIPMENT FROM ASML AND AMAT TO SOME DEGREE, AND MAKE THE BEST CHIPS AND THE BEST WAFERS IN PARTICULAR. AND NOT OF COURSE, THEY CAN'T BUY THE CHIPS. ALSO THE BEST CHIPS FROM NVIDIA AND FROM AMD THAT THEY WOULD LIKE TO BUY. SO THEY'VE RESPONDED BY GOING INTO THE MARKET AND CREATING THE ABILITY TO MAKE. SOME PEOPLE LIKE TO REFER TO THEM AS OLD SEMICONDUCTORS OR SEMICONDUCTORS AND 45 NANOMETER OR SOMETHING. YOU WOULD THINK IS WORTHLESS. I THINK OF THEM AS FOUNDATIONAL SEMICONDUCTORS. THEY ARE THE SEMICONDUCTORS THAT DO MOST OF THE WORK AND ARE MOST OF THE SALES. IT'S NOT THE FASTEST, SEXIEST STUFF, BUT IT'S THE STUFF THE WORLD NEEDS THE MOST. AND SO FROM ASML RESULTS, FOR EXAMPLE, WHAT YOU SAW IS THEIR SALES INTO CHINA WENT FROM, AS I RECALL, FROM ABOUT SIX QUARTERS AGO, ABOUT 15% TO 49% YEAR OVER YEAR GROWTH. SO FANTASTIC GROWTH OF SELLING SEMICONDUCTOR EQUIPMENT MANUFACTURING EQUIPMENT TO CHINA, RIGHT. WHEN WE'RE TALKING ABOUT THE BIDEN ADMINISTRATION AND REPUBLICANS AGREEING ON BANS OF SEMI-CAP EQUIPMENT TO CHINA. SO, IT'LL BE CURIOUS TO SEE AGAIN ON THE CALL. AND WHEN I READ THE RELEASE A LITTLE MORE FROM AMAT, WHAT THEY DID WITH CHINA AND WHAT THEIR BUSINESS WAS LIKE INTO CHINA. >> SO BOTTOM LINE, IT SEEMS LIKE MOST US SEMICONDUCTOR COMPANIES HAVE HAVE MANAGED TO SUCCESSFULLY NAVIGATE ALL OF THESE RESTRICTIONS BY SELLING IN THOSE ALTERED PRODUCTS. >> WELL, AND MAYBE MORE TO THE POINT, THAT CHINA'S MANUFACTURING THAT THE SEMI CAP EQUIPMENT COMPANIES ARE SELLING, THE ABILITY, THE EQUIPMENT THAT WILL MANUFACTURE THESE CHIPS IN CHINA. SO THEY MAY NEVER GET OUT OF CHINA, BUT CHINA IS A NET EXPORTER OF CHIPS, NOT AN IMPORTER. AND THAT'S GOING TO BE EVEN MORE SO GOING FORWARD. >> RIGHT. >> HOW DO YOU THINK, COREY, ABOUT, YOU KNOW, YOU TALKED ABOUT AI COMPETITION GEOPOLITICALLY. HOW DO YOU SORT OF THINK ABOUT WHO'S AHEAD RIGHT NOW? IF YOU WERE ASKED US OR CHINA? >> OH, ABSOLUTELY. >> UNQUESTIONABLY. WHAT'S GOING ON IN THE US AND WHY IS THAT SITUATION, BECAUSE BECAUSE THERE'S FREEDOM AND CREATIVITY AND PEOPLE WANT TO DEVELOP HERE. THEY WANT TO DEVELOP IN SILICON VALLEY IN PARTICULAR. AND THAT'S WHERE THE SMART PEOPLE ARE. I MEAN, YOU KNOW, YOU WERE IN THE BAY AREA FOR A LONG TIME, AND I'VE BEEN THERE FOR EVEN LONGER. AND THERE ARE THERE IS SO MUCH EXCITEMENT ABOUT AI RIGHT NOW. AND IT IS REALLY A FOUNDATIONAL CHANGE SINCE YOU STILL LIVE WITH IT, HAS THAT DULLED IT ALL IN THE PAST SIX MONTHS, 12 MONTHS ONLY STILL RAMPING IS IT TOO MUCH EXCITEMENT? >> SURELY THERE WILL BE CYCLES, THERE WILL BE BUSTS AND BUT THIS, THIS ONE REALLY DOES FEEL DIFFERENT IN THAT THIS IS A REAL FOUNDATIONAL CHANGE IN WHAT THE TECHNOLOGY CAN DO. >> AND YOU'LL HEAR BY THE WAY, IT'S SO INTERESTING BECAUSE YOU'VE SEEN THESE, YOU'LL HEAR THAT IT'S FOUNDATIONAL, IT'S PARADIGM INTERNET, MOBILE AI. YOU AGREE WITH THAT 100% AGREE WITH THAT AND YOU'RE SEEING IT IN THE RESULTS. >> ONE OF THE DIFFERENCES, YOU KNOW, AI AND MACHINE LEARNING HAVE BEEN AROUND FOR GENERATIONS . BUT THE GPT MOMENT WAS AN IPHONE LIKE MOMENT. IT WAS A IT WAS A NETSCAPE BROWSER MOMENT. IT REALLY SHOWED US HOW THINGS CAN ARE REALLY GOING TO CHANGE IN THE FUTURE. AND THE EVOLUTION IN THE LAST YEAR IS JUST JAW DROPPING. AND, YOU KNOW, YOU MENTIONED NVIDIA EARLIER. WE GET RESULTS NEXT WEEK FROM NVIDIA. AND THAT'S IT'S GOING TO BE REALLY INTERESTING. THEY I REALLY EXPECTED THEM TO LOWER EXPECTATIONS AND PUT A LITTLE DAMP ON THE FIRE A LITTLE BIT LAST QUARTER. AND THEY DID QUITE THE OPPOSITE. AND SO IT'S GOING TO BE REALLY INTERESTING. EARNINGS RELEASE. >> SO I'M GLAD YOU BROUGHT UP NVIDIA BECAUSE I ACTUALLY AM WRITING ABOUT NVIDIA FOR TOMORROW'S MORNING BRIEF NEWSLETTER. SHAMELESS PLUG PLEASE. >> THAT'S THAT'S A MUST READ. >> FINANCE. IT IS A MUST READ. BUT I'LL GIVE YOU A LITTLE TEASE HERE. LIKE JUST LOOKING AT HOW MUCH NVIDIA'S DATA CENTER BUSINESS HAS GROWN AND IS EXPECTED TO CONTINUE TO GROW. AND I WAS LOOKING AT OTHER COMPANIES. RIGHT. IF YOU LOOK AT OTHER COMPANIES THAT HAVE GROWN A LOT IN THE PAST, LIKE TESLA HAD A YEAR IN 2013 WHEN ITS SALES WERE UP 387, BUT IT DIDN'T EVEN HAVE $2 BILLION IN SALES. RIGHT. AND YOU'RE TALKING ABOUT COMPANY, A COMPANY THAT IS GROWING AT SALES ON AN ANNUAL BASIS, DOUBLING, TRIPLING. BUT THE SALES ARE IN THE TRIPLE DIGITS. >> YEAH, YEAH, YEAH, BILLIONS OF DOLLARS. HAVE YOU SEEN ANYTHING LIKE THIS? >> I MEAN, HAS ANY OTHER COMPANY BEEN THIS BIG AND BEEN CONTINUING TO GROW BY THIS MUCH? >> WE'VE NEVER SEEN ANYTHING LIKE THIS EVER. THERE'S NOTHING LIKE IT. WHAT'S ALSO INTERESTING IS THAT NVIDIA AND WE'LL SEE HOW THIS PLAYS OUT. BUT NVIDIA IS ALSO THEIR GROSS MARGINS. IN OTHER WORDS, THEY'RE SELLING EVERYTHING THEY MAKE. THEY'RE MAKING THINGS AS FAST AS THEY CAN. THEY'RE INVENTING AND ITERATING FASTER THAN THAN ANY CHIP COMPANY REALLY HAS EVER. BUT THEY'RE ALSO STICKING IT TO THEIR CUSTOMERS AND THEY'RE RAISING THEIR PRICES. SO MUCH SUCCESS AND SUCCESSFULLY BECAUSE BECAUSE, YOU KNOW, THE OLD SAYING USED TO BE NO ONE EVER GOT FIRED FOR BUYING IBM RIGHT NOW, IF YOU'RE BUILDING A DATA CENTER, YOU BUY THE NVIDIA CHIPS. IT'S JUST WHAT YOU DO AND WHATEVER THEY'RE GOING TO CHARGE YOU, YOU'RE GOING TO YOU'RE GOING TO BUY THOSE CHIPS. SO IT DOESN'T MATTER IF IT'S A BUILD OUT HAPPENING WITH BUT BUT AGAIN, YOU HAVE ALL THEIR CUSTOMERS, MANY OF THEIR CUSTOMERS SAYING, WE'RE GOING TO START TO DESIGN OUR OWN CHIPS. NOW, I DOUBT THAT GOOGLE, META, AMAZON, ARE ALL GOING TO BE ABLE TO CREATE CHIPS AS GOOD AND AS WELL AS NVIDIA HAS. IT'S HARD TO DO. IT'S THE HARDEST THING. MAYBE THAT'S EVER BEEN DONE. SO THEY MIGHT NOT HAVE THE SAME KIND OF SUCCESS. BUT WHEN ALL OF YOUR CUSTOMERS ARE TRYING TO INVENT A COMPETITOR TO THE PRODUCT THAT YOU ARE SELLING THEM, YOU MIGHT WANT TO WORRY ABOUT THAT. SO NVIDIA IS THEY'RE THEY'RE MAKING A LOT OF MONEY, THEY'RE TAKING A LOT OF PROFITS. AND THEY'RE INNOVATING AT AN INCREDIBLE PACE. BUT THEIR CUSTOMERS DON'T LIKE PAYING AS MUCH AS THEY'RE PAYING, ONE QUESTION I HAVE FOR YOU, COREY. YOU KNOW, WE TALKED ABOUT THE GREAT AI RACE, AND OUR COLLEAGUE JARED BLIKRE WAS JUST HERE TALKING ABOUT APPLE. YOU KNOW, THOSE COMPANIES WHERE THERE'S A SORT OF PERCEPTION, ONE THAT THEY'VE FALLEN BEHIND, AND I THINK, YOU KNOW, THERE'S THIS PERCEPTION THAT APPLE ISN'T WHERE IT SHOULD BE. YOU KNOW, THERE'S SO MUCH FOCUS NOW ON THE BIG SOFTWARE SHOW IN JUNE. DO YOU THINK IT'S SO EARLY INNINGS THAT THERE'S STILL TIME? WE'RE STILL SHAKING OUT WINNERS AND LOSERS. AND IF YOU'VE GOT THE MONEY AND THE ENGINEERS YOU CAN YOU'RE STILL CATCHING UP. >> APPLE'S FINE, BUT DID YOU SEE THE LARRY DAVID EPISODE WHERE HE STARTS SCREAMING AT SIRI, OH MY GOSH. >> IT WAS IT WAS THE PERFECT MOMENT. >> IT WAS THE PERFECT MOMENT. SO YOU KNOW, I THINK THAT, IT REALLY DEMONSTRATES THE FRUSTRATION THAT PEOPLE HAVE WITH THE APPLE PRODUCT AND THE LACK OF AI THERE, BECAUSE THAT'S SOMETHING I WOULD HELP, AND SO THERE'S SOME ROOM IN THE MARKETPLACE, BUT APPLE'S REALLY LOCKED THEMSELVES IN THIS POSITION, PARTICULARLY IN THE US WITH SMARTPHONES THAT NO ONE ELSE IS THERE. >> I'VE HAD SIMILAR CONVERSATIONS WITH ALEXA BY THE WAY. >> YES. >> WHERE SHE DOESN'T REALLY UNDERSTAND WHAT LARRY DAVID CURSE. I WOULDN'T GO THAT FAR. MY CHILDREN ARE USUALLY AROUND WHEN I'M TALKING TO HER, SO I KEEP MYSELF UNDER CONTROL. >> COREY, IT'S GREAT TO SEE YOU. >> GOOD TO SEE YOU GUYS. >> IT'S, GOOD TO BE HERE. >> THANKS FOR COMING IN. COME VISIT US AGAIN. ALL RIGHT. COMING UP, WE'RE GOING TO TALK ABOUT MORTGAGE RATES, WHICH DECREASED FOR THE SECOND CONSECUTIVE WEEK. WE'LL CHECK IN ON THE LATEST HOUSING HURDLES ON THE OTHER SIDE. MORE MARKET DOMINATION, OVERTIME COMING UP. LET'S RECAP TODAY'S SESSION FOR YOU. SPONSORED BY TASTYTRADE. WE'VE GOT ALL THREE MAJOR AVERAGES THAT FELL TODAY AFTER EARLIER HITTING RECORDS, THEN PULLING BACK THE DOW IN PARTICULAR, TOUCHING 40,000 BEFORE FINISHING THE DAY DOWN A 10TH OF 1. THE S&P AND THE NASDAQ ALSO LOWER. WALMART WAS THE STANDOUT, THOUGH, BOTH IN THE DOW AND THE S&P WAS THE BEST PERFORMER, UP BY 7% FOLLOWING ITS EARNINGS. BUT WE ENDED UP SEEING A DRAG FROM SOME OTHER SECTORS ON THE DAY AND CONSTRUCTION OF NEW HOMES ROSE 5.7% IN APRIL AT A LOWER CLIP THAN ECONOMISTS WERE IN FACT PROJECTING. >> RECENT DATA SUGGESTING BUILDERS ARE CAUTIOUS AS MORTGAGE RATES HOVERED ELEVATED LEVELS. BUT SOME GOOD NEWS FOR HOME BUYERS MORTGAGE RATES EDGING LOWER FOR THE SECOND STRAIGHT WEEK. WE'RE SPEAKING WITH A TOP EXECUTIVE OF ONE OF THE TOP BUILDING MATERIALS SUPPLIERS ABOUT THE DEMAND THEY ARE SEEING RIGHT NOW. SO JOINING US IS SAINT-GOBAIN NORTH AMERICA CEO MARK RAYFIELD. MARK, IT IS GOOD TO HAVE YOU ON THE SHOW. AND MAYBE MARK, JUST WE CAN START WITH YOUR GENERAL TAKE THERE ON THE HOUSING MARKET. WHAT ARE YOU SEEING, MARK? WHAT ARE THE FUNDAMENTALS LOOK LIKE. >> SO FIRST OFF, THANKS FOR HAVING ME ON AND ON. THE HOUSING MARKET, WE HAVE REMAINED RELATIVELY BULLISH ON ON THE CURRENT PROJECTIONS AND GOING FORWARD. THERE'S A GREAT UNDER BUILT CAPACITY IN HOME AND HOUSING RIGHT NOW BOTH IN THE US AND IN CANADA. PROBABLY 7 MILLION UNDER BUILT IN THE US AND 3.5 MILLION UNDER BUILT IN CANADA. SO THE FUNDAMENTALS REMAIN STRONG AS WELL AS THE FUNDAMENTALS ARE STILL STRONG ON REMODELING AND RENOVATION. NOTHING LIKE IT WAS IN COVID BUT STILL QUITE ROBUST. SO. SO WHILE YOU HAVE INTEREST RATES HIGH, YOU HAVE HOUSING STARTS AND COMPLETIONS ON A MONTH TO MONTH BASIS GETTING A LOT OF ATTENTION . IN GENERAL, THE BASIC FUNDAMENTALS OF HOUSING IN NORTH AMERICA ARE VERY STRONG AND WILL BE FOR THE NEXT NUMBER OF YEARS. AND MARK, HOW ARE YOU ALL DOING WITH HAVING ENOUGH SUPPLY TO KEEP UP WITH THAT DEMAND? >> OBVIOUSLY, THAT WAS AN ISSUE DURING COVID. WHAT DOES THAT LANDSCAPE LOOK LIKE NOW? >> IT'S MUCH BETTER RIGHT NOW. I MEAN, IT'S STILL IT'S STILL A VERY ROBUST MARKET. SO FOR THE VAST MAJORITY OF BUILDING MATERIALS, IF YOU LOOK AT EXTERIOR PRODUCTS AND ROOFING AND SIDING AND GYPSUM AND INSULATION, THE MARKET IS THERE THEREABOUTS AT CAPACITY NOT SOLD OUT LIKE IT WAS IN COVID. BUT DEPENDING ON WHERE YOU ARE REGIONALLY, THERE COULD BE SOME SUPPLY CHALLENGES. NOT NOT LONG, BUT SO THAT IS ANOTHER REASON I SAY THE MARKET REMAINS QUITE ROBUST AT THE AT THESE HOUSING LEVELS. >> SO THE HOUSING YOU KNOW, LOOKS ROBUST. I'M CURIOUS MARK, WHERE ARE YOU SEEING. KIND OF THE MOST ACTIVITY WITHIN THAT MARKET THOUGH, YOU KNOW IS IT IS IT NEW CONSTRUCTION MARK. IS IT REMODELING? WHERE ARE YOU SEEING IT? >> SO IT'S A MIX. >> WHAT I LIKE TO SAY IS WE WANT TO KNOW WHERE THE ACTIVITY IS. FOLLOW THE PEOPLE. SO OBVIOUSLY, THE SOUTHEAST AND SOUTHWEST WHERE PEOPLE ARE GRAVITATING TO SOMEWHAT HAS A GREATER DEGREE OF ACTIVITY. BUT WE HAVE TWO BUCKETS. YOU HAVE THE LARGE HOME BUILDERS ARE STILL BUILDING AT A RELATIVELY GOOD CLIP AND HAVING A GOOD SUCCESS THERE. LOOKING OUT LONG TERM AND REALIZE THERE'S NEED FOR MORE HOMES AND YOU HAVE A LOT OF WEATHER IMPACTED. BUILDING GOING ON FOR REMODELING, WHETHER IT BE AFTER THE SNOW THAWS AND THE STORMS OF THE WEST COAST NOW REALLY BUILDING UP ON A LOT OF REMODELING OR OUT THROUGH THE MIDWEST INTO THE SOUTHEAST, WHICH HAS A LOT OF, WEATHER IMPACTED REMODELING TAKING PLACE . >> MARK, YOU GUYS AREN'T JUST RESIDENTIAL. YOU DON'T PROVIDE JUST RESIDENTIAL MATERIALS. YOU ALSO DO OTHER KINDS OF CONSTRUCTION. SO WHAT'S THE SORT OF SHARE IN NORTH AMERICA OR HOW DOES IT BREAK DOWN IN NORTH AMERICA? AND WHAT IS THE DEMAND LOOKING LIKE IN THOSE OTHER AREAS. >> SO WE ARE PREDOMINANTLY RESIDENTIAL, SO CLOSER TO 75% RESIDENTIAL THAN ANOTHER NUMBER. SO WE BUT WE HAVE A SIGNIFICANT COMMERCIAL BUSINESS BOTH IN OUR GYPSUM INSULATION INTERIOR CEILINGS BUSINESS AS WELL AS WE HAVE SOME VERY INNOVATIVE PRODUCTS WITH SAGE GLASS ELECTROCHROMATIC GLASS. SO IN IN COMMERCIAL YOU HAVE A SOFTER MARKET, PARTICULARLY WHEN YOU'RE LOOKING AT THE, THE OFFICE BASE AND THE MAJOR CITIES. THERE'S SOME REMODELING OF THOSE INTO, INTO, INTO, INTO HOUSING UNITS AND I THINK YOUR TOP PROPERTIES ARE GETTING RENOVATED AND REBUILT AND PEOPLE ARE COMING BACK IN, BUT IT CERTAINLY A SOFTER MARKET UNTIL YOU GET TO BIOPHARM TRANSPORTATION, AIRPORTS, WHICH IS STILL A RELATIVELY GOOD MARKETPLACE. SO IT'S CERTAINLY NOT AS ROBUST AS RESIDENTIAL. >> I'M CURIOUS TO MARK, YOU KNOW , WE TALK ABOUT OBVIOUSLY OF COURSE, THE LABOR MARKET ON THIS SHOW. CURIOUS HOW YOU'RE SEEING THAT OR ARE YOU ALL HIRING RIGHT NOW, MARK? AND ARE YOU IF YOU IF SO, ARE YOU ARE YOU FINDING THE PEOPLE YOU WANT TO HIRE? >> YES. >> SO WE ARE HIRING. WE CONTINUE TO HIRE. SO ANYONE WATCHING WE'D LOVE TO TALK TO YOU. SO I THINK WE'RE STILL HIRING. WE'RE GROWING IN NORTH AMERICA DOING A LOT OF INVESTMENT. SO WE'RE ALWAYS LOOKING FOR TALENT IN THE BUSINESS AND THE LABOR MARKET AND ATTRACTING LABOR HAS GOTTEN BETTER AGAIN, OFF OF THE REALLY CHALLENGING TIMES OF COVID. BUT IT'S STILL YOU NEED TO HAVE THE RIGHT VALUE PROPOSITION. YOU NEED TO HAVE THE RIGHT WORK ENVIRONMENT. YOU NEED TO HAVE SOMETHING THAT THEY WANT TO EMBED INTO. WHAT WE'RE SEEING IS THE LABOR FORCE COMING IN DOESN'T JUST WANT A JOB, THEY WANT TO BE CONNECTED TO SOMETHING THEY BELIEVE IN. WE ARE DECARBONIZING THE CONSTRUCTION MARKET, TRYING TO MAKE THE WORLD A BETTER HOME, IF YOU WILL, THROUGH CONSTRUCTION AND LIGHT, SUSTAINABLE CONSTRUCTION. SO THEY WANT TO HAVE THAT PURPOSE TO COME FORWARD. SO MORE SO THAN EVER, YOU NEED A CULTURE AND A WELCOMING ENVIRONMENT TO BRING A VERY DIVERSE WORKFORCE IN MARK, I WANT TO GO BACK TO THE BEGINNING WHERE WE TALKED ABOUT MORTGAGE RATES AND WE ARE STARTING TO SEE A LITTLE BIT OF A TICK DOWN WHAT KIND OF MAGNITUDE OF TICK DOWN IN THOSE MORTGAGE RATES? >> WELL, WE NEED TO SEE TO UNLOCK REALLY SORT OF THE NEXT TRANCHE OF DEMAND FOR RESIDENTIAL CONSTRUCTION. >> THAT'S A GREAT QUESTION. AND I CAN GIVE YOU AN OPINION. I DON'T THINK I HAVE THE ANSWER. YOU KNOW, THE REALITY IS THAT I THINK IF YOU LOOK AT SOME OF THE STUFF OUT OF THE NATIONAL ASSOCIATION OF HOME BUILDERS AND SOME NUMBERS, IF YOU WERE TO GO DOWN IN THE 6.25, YOU KNOW, ANOTHER 4 TO 5 MILLION PEOPLE COULD AFFORD A HOME TODAY. IF YOU GO DOWN TO 5, IT'S ANOTHER 10 MILLION. SO JUST GETTING TO THOSE LEVELS BRINGS THE AFFORDABILITY GAP UP FOR, YOU KNOW, REALLY 10 MILLION NEW PEOPLE TO ENTER THE HOUSING MARKETS. THE REAL LOCK IS ALSO JUST PEOPLE WITH A 3% MORTGAGE. WILL THEY SELL THEIR HOUSE AND GO TO A LARGER OR A NEW HOUSE FOR 6? RIGHT NOW? MAYBE WHEN YOU GET BELOW SIX, I THINK YOU START TO SEE PEOPLE START TO UNLOCK THAT. THE HISTORIC AVERAGE OF MORTGAGES IS IN THE 7% RANGE, IF YOU TAKE THE LONG VIEW OF IT. SO WE'RE WE'RE HIGHER THAN WE'RE USED TO IN THE LAST DECADE, BUT WE'RE NOT OUTRAGEOUS, RIGHT. >> MARK RAYFIELD, THANKS SO MUCH FOR YOUR PERSPECTIVE. APPRECIATE IT. >> THANKS FOR YOUR TIME. HAVE A GREAT DAY. >> TAKE CARE. YOU TOO. AND CHECKING IN NOW ON OIL AS U.S. CRUDE STOCKPILES DECLINE FOR A SECOND WEEK, IT'S A POSITIVE SIGNAL FOR DEMAND. YAHOO FINANCE IS IN S FOR EIGHT HERE WITH THE LATEST ON THE OIL MARKET. HYANNIS. >> HI, JULIE. YEAH. >> WHEN WE SEE STOCKPILES DECREASING THAT IS BULLISH FOR OIL. SO TAKING A LOOK AT WHERE WE'RE AT TODAY WE DID SEE WTI AND BRANT CRUDE ON OUR WI-FI INTERACTIVE. YOU CAN SEE THAT THOSE AROSE TODAY BOTH WTI JUST ABOVE $79 PER BARREL. BRANT CRUDE ALSO HIGHER YEAR TO DATE. BY THE WAY WTI IS UP ABOUT 12. BRANT CRUDE IS UP ABOUT 10. NOW OIL HAS BEEN GOING A LITTLE BIT HIGHER OVER THE LAST COUPLE OF SESSIONS. WE DO HAVE THE EXPECTATION THAT THE FED WILL BE CUTTING RATES. SO PART OF THE REASON WHY WE HAVE SEEN OIL GO HIGHER IS BECAUSE OF THAT EXPECTATION THAT WOULD BE BULLISH FOR OIL, BECAUSE LOWER RATES WOULD STIMULATE THE ECONOMY. THAT WOULD BE GOOD FOR DEMAND. I DO WANT TO MENTION SOMETHING ELSE THAT'S GOING ON IN THE ENERGY MARKET, AND THAT IS NATURAL GAS PRICES. YOU CAN SEE THE NATURAL GAS IS AT AROUND $2.50. THAT'S UP ABOUT MORE THAN 2% TODAY. BUT I WANT TO SHOW YOU A ONE MONTH CHART SO YOU CAN SEE UP 43% OVER THE LAST MONTH. EIA DATA SHOWING THAT LAST WEEK'S BUILD FELL SHORT OF ESTIMATES. THAT'S ALSO BULLISH FOR NATURAL GAS. YOU'VE HAD RECENT PRODUCTION SHUT INS THAT'S BEEN BULLISH FOR NATURAL GAS. AND ANALYSTS ARE EXPECTING THAT THE SUMMER WILL BE HOT. SO YOU WILL HAVE SOME DEMAND. REMEMBER THAT WE SAW NATURAL GAS PRICES AT BELOW $2 BACK IN AROUND APRIL, WHERE YOU JUST SAW A GLUT OF SUPPLY IN THE MARKET THAT HAS CHANGED OVER THE LAST SEVERAL WEEKS. AND BY THE WAY, IN THAT LAST CPI REPORT THAT WAS REPORTED YESTERDAY, YOU SAW TWO COMPONENTS OF THE ENERGY INDEX, WHICH WERE DOWN MONTH OVER MONTH IN APRIL. ONE OF THEM WAS ELECTRICITY, THE OTHER ONE WAS NATURAL GAS. NATURAL GAS COMING OFF THOSE LOWS RECENTLY AND AS THANK YOU. >> APPRECIATE IT. THANK YOU. TIME NOW FOR TO WATCH. FRIDAY, MAY 17TH. STARTING OFF IN THE SOUTH, VOTING FOR MERCEDES WORKERS IN ALABAMA TO JOIN THE UNITED AUTO WORKERS WILL WRAP UP TOMORROW. THIS IS ANOTHER MAJOR TEST AFTER UAW PRESIDENT SEAN FEIN'S VICTORY IN TENNESSEE, WHERE WORKERS AT A VOLKSWAGEN PLANT VOTED TO UNIONIZE. >> MOVING OVER TO THE FEDERAL RESERVE. WE'LL GET SOME COMMENTS FROM FED GOVERNOR CHRISTOPHER WALLER IN THE MORNING. THIS COMING AFTER A BIG ROUND OF FED COMMENTARY TODAY, INCLUDING CLEVELAND FED PRESIDENT LORETTA MESTER MESTER SUGGESTING THAT INTEREST RATES SHOULD STAY HIGH FOR LONGER, SAYING THAT THE RECENT INFLATION DATA INDICATES THAT, QUOTE, IT WILL TAKE LONGER TO GAIN THAT CONFIDENCE. >> AND FINALLY, BOEING, HOLDING ITS ANNUAL SHAREHOLDER MEETING IN THE MORNING, BOEING SHAREHOLDERS DECIDING ON WHETHER TO APPROVE EXECUTIVE PAY AND REELECT THE PLANE MAKERS. OUTGOING CEO DAVE CALHOUN TO ITS BOARD IS COMING AFTER PROXY ADVISORS FLAGGED PERFORMANCE CONCERNS FOLLOWING THE JANUARY MID-AIR BLOWOUT ON A 737 MAX NINE. >> THAT'LL DO IT FOR TODAY'S MARKET DOMINATION OVER TIME. BE SURE TO COME BACK TOMORROW AT 3 P.M. EASTERN FOR ALL OF YOUR COVERAGE LEADING UP TO AND AFTER THE CLOSING BELL. STAY TUNED. WE'VE GOT MORE YAHOO FINANCE ON THE OTHER SIDE . THE CONSUMER. BROADLY HAS BEEN PULLING BACK FROM DINING OUT AND HEADING BACK INTO THE KITCHEN IN THE PAST QUARTER, WALMART'S CUSTOMERS WERE DRAWN IN BY LOW PRICES, ESPECIALLY IN THE GROCERY CATEGORY. WHILE RESTAURANT GIANT DINE BRANDS SAW SAME STORE SALES FALL ACROSS ITS MAJOR BRANDS. LIGHTSPEED'S COMMERCE PLATFORM OFFERS PAYMENT AND POINT OF SALE SOLUTIONS TO RESTAURANTS NATIONWIDE. HERE TO DISCUSS TRENDS AMONGST CONSUMERS . LIGHTSPEED CEO DAX DASILVA. YOU GUYS ALSO REPORTED EARNINGS, WHICH IS WHY WE SEE THE STOCK PRICE GOING UP BY SOME 18% TODAY. DAX, THANKS SO MUCH FOR BEING HERE, AND SO YOU GUYS ARE OFFERING THE SOFTWARE SUITE THAT YOU DO TO A BROAD SWATH OF RESTAURANTS, SMALL RETAILERS ETC. YOU HAVE A PRETTY GOOD TEMPERATURE READING HERE. WHAT WERE YOU SEEING IN TERMS OF DEMAND LAST QUARTER, AND WHERE WAS THAT DEMAND COMING FROM? >> YEAH, WE SEE A LOT OF DATA ACROSS OUR RETAIL AND HOSPITALITY BUSINESSES AROUND THE WORLD, WE ARE SEEING, YOU KNOW, ON THE HOSPITALITY SIDE, WE'RE SEEING, PEOPLE TREATING GOING OUT TO EAT AS A LUXURY, AND SO THEY'RE MAKING THEY'RE MAKING VERY CONSCIOUS CHOICES ABOUT WHAT THEY ORDER, YOU KNOW, DOWN, WE SEE, WE, WE SEE THINGS LIKE, TASTING MENUS AND APPETIZERS AND TAPAS, BUT THEY ARE REWARDING THEMSELVES WITH THINGS LIKE, NONALCOHOLIC BEVERAGES, COFFEES, DESSERTS, PIZZA, SO THOSE ARE SOME OF THE TRENDS THAT WE'RE SEEING, WE'RE SEEING BARS DOWN, BUT, BUT BUT HAPPY HOURS. THOSE KINDS OF OFFERINGS ARE POPULAR WITH CONSUMERS, AND ON THE RETAIL SIDE, WE'RE SEEING A LITTLE BIT OF A CHANGE FROM, THE, THE PEOPLE, THE INVESTMENTS PEOPLE ARE MAKING IN OUTDOOR SPORTS AND, APPAREL AND FOOTWEAR, AND THEY'RE STAYING HOME MORE. SO THEY'RE, INVESTING IN HOME AND GARDEN, PETS, HOBBIES, AND THEY'RE, THEY'RE BUYING THEIR, THEIR WINE AND BEER AND LIQUOR FROM RETAIL STORES. >> AND DAX, I ALSO HAVE TO ASK YOU QUICKLY ABOUT YOUR OWN ROLE BECAUSE IT SEEMS LIKE THAT, YOU'VE BEEN REAPPOINTED HERE, DAX. SO? SO NO LONGER INTERIM. WALK US THROUGH THAT NEWS, DAX. WHY THE CHANGE? >> YES, IT'S A NEW A NEW PHASE OF GROWTH AT LIGHTSPEED. WE'RE IN OUR PROFITABLE GROWTH PHASE, I SERVED, I'M THE FOUNDER, SO I WAS THE CEO FOR 17 YEARS. I BECAME THE EXEC CHAIR FOR TWO YEARS NOW. NOW I'VE COME BACK TO LIGHTSPEED AS WE'RE IN THIS NEW PHASE BALANCING PROFITABILITY AND GROWTH, WE'RE GOING TO REACH A BILLION IN REVENUE IN THIS FISCAL YEAR 25, WHICH WE'RE JUST, STARTING AND REALLY JUST BALANCING BEING A HIGH GROWTH COMPANY. WE ALWAYS HAVE BEEN WITH INCREASING PROFITABILITY. SO WE'RE FORECASTING THE NEXT YEAR WE'LL GROW NORTH OF 20, BUT WE'LL ALSO SHOW 40 MILLION IN EBITDA, HOW ARE YOU MAKING THAT TRANSITION DAX? SORT OF. WHAT ARE YOU FOCUSING ON ON YOU. ARE YOU CUTTING BACK ANYWHERE? ARE YOU TAKING YOUR FOOT OFF THE GAS IN CERTAIN AREAS. >> SO WE HAVE A LOT OF MARKET SHARE TO GRAB IN TERMS OF OUR COMPLEX HOSPITALITY AND RETAIL MERCHANTS. SO WE ARE BEING AGGRESSIVE ON SOFTWARE SUBSCRIPTION. GROWTH IN THIS NEXT YEAR. WE SPENT LAST FISCAL YEAR REALLY PENETRATING OUR PAYMENTS PLATFORM ACROSS OUR ACROSS OUR CUSTOMER BASE, AND WE WERE VERY SUCCESSFUL. SO THIS YEAR ON THAT FOUNDATION, WE'RE REALLY EXPANDING SOFTWARE SALES. WE'VE DONE A RESTRUCTURE. I'VE DONE A RESTRUCTURING IN MY 90 DAYS SINCE I'VE BEEN BACK, AND SO THERE'S MORE COST EFFICIENCIES TO BE HAD, WE'RE LOOKING AT FACILITIES AND OTHER OTHER THINGS THAT WE CAN, YOU KNOW, MA MORE EFFICIENT ACROSS THE BUSINESS. >> YOU KNOW, YOU COMPETE IN A TOUGH MARKET, LOTS OF COMPETITION. WHAT WHAT SETS LIGHTSPEED APART? WHAT'S THE COMPETITIVE ADVANTAGE THERE. >> SO WE SERVE THAT MORE COMPLEX SEGMENT OF RETAIL AND HOSPITALITY. OUR OUR CUSTOMERS ARE NOT QUITE ENTERPRISE AS THEY'RE THE SCALED UP ESTABLISHED MERCHANTS IN RETAIL. SO ON THE RETAIL SIDE, COMPLEX INVENTORY, MULTI-CHANNEL MULTI-LOCATION REGION, THAT'S THAT'S OUR SWEET SPOT. WE TAILOR OUR CUSTOMER EXPERIENCE AND OUR PRODUCT, FOR, FOR THAT MARKET ON ON HOSPITALITY, WE'RE SERVING MORE COMPLEX HOSPITALITY BUSINESSES LIKE RESTAURANTS WITH WITH FINE DINING AND TABLE SERVICE, BUT ALSO RESTAURANTS INTEGRATED WITH HOTELS, WITH RESORTS, WITH GOLF COURSES AND THAT SPECIFIC SET OF, OF NEEDS, AND SO WE, THIS IS A VERY LARGE TAM AND A VERY EXCITING OPPORTUNITY. AND WE'RE TAILORING BOTH OUR PRODUCT INNOVATION AND OUR CUSTOMER JOURNEY FOR OUR, TO BEST SERVE THAT MARKET, DAX, SOMETHING ELSE ABOUT YOU GUYS THAT IS ALWAYS THAT I'VE FOUND FASCINATING IS THAT YOU ALSO HAVE VERY HIGH END RESTAURANTS THAT ARE AMONG YOUR CLIENTS. YOU GUYS HAVE. I SAW A STAR. YEAH. AS OF LAST COUNT, OVER 160 MICHELIN STARRED RESTAURANTS THAT OUR CLIENTS. WHAT DO YOU SEEING IN THAT COHORT? ARE YOU SEEING ANY KIND OF PULLBACK. ARE PEOPLE BUYING LOWER PRICED ENTREES, FOR EXAMPLE, RATHER THAN THE HIGHEST YOU KNOW IN OUR IN OUR, THE ON THE CUSTOMERS USING OUR FLAGSHIP PRODUCTS, WHICH IS GOT MORE HIGH END CUSTOMERS. >> WE ACTUALLY SAW A GTV GROW BY 29, SO THERE IS I THINK, A HEALTH AMONG THOSE BUSINESSES, THAT MAY NOT BE SEEN ACROSS THE BROADER MARKET. >> AND DAX, JUST FOR MERCHANTS WHO MIGHT BE LISTENING RIGHT NOW TO THIS SHOW, ANY KIND OF INSIGHT OR GUIDANCE YOU COULD OFFER DAX ABOUT HOW TO OPTIMIZE GROWTH RIGHT NOW. >> SO WE'RE LEVERAGING AI ACROSS A LOT OF OUR PRODUCT SUITE SO THAT WE CAN GIVE RECOMMENDATIONS AND, AND STREAMLINE THE MUNDANE TASKS. I THINK THAT LEVERAGING AI IN YOUR BUSINESS SO THAT AS A BUSINESS OWNER, YOU CAN FOCUS ON THE GUEST EXPERIENCE OR THE CURATION OF YOUR RETAIL PRODUCTS. THAT'S WHERE YOU WANT TO SPEND YOUR TIME. SO, YOU KNOW, A PLATFORM THAT GIVES YOU LEVERAGE BY REMOVING SOME OF THAT, SOME, SOME OF THAT REPETITIVE WORK, IS WHERE YOU WANT TO BE AND YOU WANT TO GET THE RECOMMENDATIONS, LIKE, FOR EXAMPLE, ON HOSPITALITY, ON HOSPITALITY WILL GIVE YOU RECOMMENDATIONS ON WHAT ARE THE MENU ITEMS THAT, THAT, THAT THE CURRENT CONSUMER IS REALLY EXCITED ABOUT. >> DAX, IT WAS GOOD TO HAVE YOU ON THE SHOW. THANKS FOR JOINING US. >> THANK YOU. >> ON THE OTHER SIDE OF THE BREAK, WE'RE HEADING TO THE NFL. IN THE LATEST EPISODE OF LEAD THIS WAY. THAT'S NEXT ON YAHOO FINANCE . THE NFL NEEDS NO INTRODUCTION, AND NEITHER DOES TROY VINCENT, FORMER PHILADELPHIA EAGLES CORNERBACK TURNED NFL INSIDER. AS EXECUTIVE VICE PRESIDENT OF FOOTBALL OPERATIONS IN A LEAGUE OF 32 TEAMS VALUED AT $163 BILLION, VINCENT OVERSEES WHAT'S MOST CRITICAL TO THE GAME ITS RULES. >> LEADERSHIP IS LONELY. YOUR COMPROMISES OF TODAY BECOME YOUR STANDS OF TOMORROW BEHIND THE BUSINESS OF AMERICA'S SPORT, FOOTBALL OPERATIONS IS TASKED WITH MONITORING POLICIES ON THE FIELD TO PROTECT PLAYERS WITHOUT DAMAGING THE POPULARITY OF THE GAME. >> AND VINCENT IS DOING IT AT A TIME WHEN THE NFL'S COACHING AND PLAYER DEVELOPMENT ARE BEING QUESTIONED, EVEN BY FORMER QUARTERBACK LEGEND TOM BRADY. WITH THE NFL'S COMMERCIAL SUCCESS AND GROWING FAN BASE, THERE'S A REASON WHY IT'S OFTEN HAILED AS ONE OF THE COUNTRY'S GREATEST UNIFIER. BUT THERE IS NO NFL WITHOUT ITS NEARLY 1700 PLAYERS, AND VINCENT COMMITTED TO THE ATHLETES AND PRESERVING THE INTEGRITY OF THE GAME. YAHOO FINANCE MET WITH VINCENT AT THE NFL HEADQUARTERS IN NEW YORK CITY TO GET A CLOSER LOOK AT THE CHALLENGES AND REWARDS OF HEADING THE OPERATIONS OF THE WORLD'S LARGEST SPORTS LEAGUE. >> SO, JOSH, THIS IS WHERE THE ART MCNALLY GAMEDAY CENTRAL IS, WHERE I PROBABLY SPEND DURING THE SEASON. 98% OF MY TIME. SO THIS IS WHEN I HEAR AIKMAN JOE BUCK SAY IT'S ANYTIME, NEW YORK. ANNOUNCER. THIS PLAY IS GOING BACK TO NEW YORK OR IS BEING REVIEWED. YEAH, IN NEW YORK. RIGHT IN HERE. THIS IS WHAT YOU'RE TALKING ABOUT. LET'S GO. >> ONE THING'S FOR SURE. VINCENT IS NOT SOFT ABOUT FOOTBALL. EVEN WHEN RUNNING NEW AND AT TIMES RISKY POLICIES TO A GAME LOVED AND WATCHED BY MILLIONS WITH ONE GOAL IN MIND. BUILDING ON THE SUCCESS OF THE LEAGUE BY INVESTING IN ITS PLAYERS. YOU WANT POLICIES AND PROCEDURES ON THE FIELD THAT ARE GOING TO PROTECT PLAYERS, REDUCE RISK. YOU ALSO, THOUGH, YOU WANT TO MAINTAIN THE SPIRIT OF THE GAME THAT AMERICANS LOVE, WHICH IS LISTEN, IT'S THE PACE, IT'S THE ENERGY, IT'S THE AGGRESSION. RIGHT. HOW DO YOU KIND OF THINK ABOUT BALANCING THOSE GOALS? >> SO I'M IN A UNIQUE POSITION FROM MY FORMER YEARS AS BEING ON THE FIELD, AND IT'S PROTECTING PRESERVING THE GAME THAT AMERICANS AND THOSE WHO ARE ABROAD HAVE COME TO LOVE. THEY LOVE POINTS. THEY LOVE THE EXCITEMENT. THEY LOVE THESE MEMORABLE MOMENTS. WHILE BEING RESPONSIBLE OF PROTECTING PLAYERS FROM UNNECESSARY RISK. I COME FROM AN ERA WHERE THERE WERE THINGS THAT WE DID THAT I DID PERSONALLY, THINGS I WAS TAUGHT THAT REALLY HAVE NO PLACE IN THE GAME. >> SUCH AS WHAT? TROY, WHAT'S AN EXAMPLE? >> JUST USING THE HELMET AS A WEAPON. LIKE TRYING TO REALLY INFLICT HARM TO YOUR OPPONENT. THAT WAS THE MENTAL CITY BEFORE JOINING THE EXECUTIVE TEAM. >> VINCENT GOT HIS START IN THE NFL AS A FIRST ROUND PICK IN THE 1992 DRAFT TO PLAY WITH THE MIAMI DOLPHINS AS A CORNERBACK. HE HELPED THE DOLPHINS REACH THE AFC CHAMPIONSHIP GAME HIS ROOKIE YEAR, BUT VINCENT REALLY MADE HIS MARK WHEN HE SIGNED WITH THE PHILADELPHIA EAGLES, WHERE HE MADE FIVE CONSECUTIVE PRO BOWLS. BUT AS VINCENT SAYS, FOOTBALL WAS A DIFFERENT GAME IN HIS TIME. >> THERE WAS AN ERA OF FOOTBALL THAT WE GREW TO LOVE, SELF INCLUDED. >> THAT WAS JUST THERE WAS A BRUTALITY THAT IT WAS ACCEPTABLE. NOW WITH SCIENCE AND ENGINEERING AND RESEARCH, WE'VE SEEN, IT'S REALLY ABOUT WHAT DOES LIFE LOOK LIKE? BECAUSE A 21 TO 22 YEAR OLD HAS NO CLUE OF WHAT LIFE LOOKS LIKE OR WILL FEEL LIKE AT THE AGE OF 40 OR 50 OR 60, THAT'S OUR RESPONSIBILITY AS LEGENDS, AS GATEKEEPERS TO PROTECT THAT PLAYER FROM UNNECESSARY RISK. >> AS VINCENT PUTS IT, ENCOURAGING PLAYER SAFETY WHILE AT THE SAME TIME MAINTAINING THE PACE AND AGGRESSION OF THE GAME FANS LOVE IS A CAREFUL BALANCING ACT. IN 2024, THE HIP DROP TACKLE WAS BANNED AFTER THE NFL FOUND INJURY RATES WERE 25 TIMES HIGHER. WHEN A TACKLER WRAPS A RUNNER ON WEIGHTS HIMSELF AND TRAPS HIS OPPONENT'S LEGS. RULE CHANGES HAVE LEFT SOME FANS AND PLAYERS CONCERNED THAT THE GAME HAS BEEN WATERED DOWN, AND IS NOT AS EXCITING AS IT USED TO BE. ACCORDING TO SPORTS BOOK REVIEW, 82% OF FANS BELIEVE RULES AND PENALTIES SHOULD BE CHANGED. >> I THINK THERE'S A LOT OF MEDIOCRITY IN TODAY'S NFL IN 2023, FORMER QUARTERBACK TOM BRADY DIDN'T HOLD BACK ON VOICING HIS CONCERNS WITH THE DIRECTION OF THE LEAGUE. THE RULES HAVE ALLOWED A LOT OF BAD HABITS TO GET INTO THE ACTUAL PERFORMANCE OF THE GAME. I RESPECT TOM, AND TOM HAS EARNED THAT RIGHT TO VOICE HIS OPINION LIKE OTHERS, AND THEY SHOULD CHALLENGE US, HOLD US ACCOUNTABLE AS GATEKEEPERS AND TOM'S ERA, THE MAJORITY OF THE QUARTERBACKS WEREN'T DUAL THREATS. >> POCKET PASSERS. WHEN YOU LOOK AT THE WAY THE ROSTERS FROM YOUR JOSH ALLEN'S TO YOUR PATRICK MAHOMES OR YOUR LAMAR JACKSON, YOUR RUSSELL WILSON'S DESTOOLED THREAT QUARTERBACKS, YOUR JUSTIN FIELDS, THESE THESE INDIVIDUALS, IT'S A DIFFERENT ERA AND QUARTERBACK PLAY IN THE OFF SEASON. >> VINCENT AND THE NFL COMPETITION COMMITTEE ASSESSED WHAT CHANGES NEED TO BE MADE FOR THE NEXT SEASON. AND ON MARCH 26, NFL OWNERS APPROVED A NEW RULE THAT IS TURNING WHAT WAS CALLED A DEAD PLAY INTO AN INTEGRAL PART OF THE GAME. AGAIN, KICKOFFS, AS OPPOSED TO A TRADITIONAL RUNNING START, THE KICKER WILL KICK OFF FROM HIS 35 YARD LINE, AND THE REST OF THE KICKING TEAM WILL LINE UP AT THEIR OPPONENT'S 40 YARD LINE. THE PLAY BEGINS WHEN THE BALL IS EITHER CAUGHT OR HITS THE GROUND IN THE LANDING ZONE. THE GOAL CREATE AN EXCITING PLAY WITH HIGHER RETURNS WHILE ALSO REDUCING INJURIES. >> IT'S THE SPACE AND SPEED. IT'S WHEN THE PLAYER HAS THE ABILITY AND OUR PLAYERS ARE. NOW THEY'RE RUNNING 81 TO 22 MILES AN HOUR. WHEN THEY HAVE THAT SPACE TO BUILD UP THAT KIND OF SPEED, AND THEN YOU MAKE THE IMPACT. THAT'S NOT THAT'S NOT WHAT WE WANT. WE ALL KNOW AS FANS, WHEN YOU HAVE AN EXPLOSIVE KICKOFF, PLAY IT CHANGES THE ATMOSPHERE NOT ONLY IN THE STADIUM, IT CHANGES THE MOMENTUM OF THE GAME. WE WANT TO BRING THOSE ELEMENTS BACK. THEY SHOULD BE BACK. >> THE NEW KICKOFF MODEL WILL GIVE RETURN OPPORTUNITIES TO PLAYERS WITH BIG PLAY POTENTIAL, AND THE IMPACT WAS IMMEDIATE. >> WITH THE PITTSBURGH STEELERS SIGNING A TWO YEAR, $6 MILLION CONTRACT FOR CORDARRELLE PATTERSON, WHO HAD A RECORD NINE KICKOFF RETURN TOUCHDOWNS DURING THE 2023 SEASON. THE NEW RULE EVEN INFLUENCED DRAFT DAY DECISIONS, THE LIFELINE FOR KEEPING THE LEAGUE FRESH AND COMPETITIVE WITH TEXAS A&M. AINIAS SMITH, PENN STATE'S DAEQUAN HARDY AND UNIVERSITY OF TEXAS'S XAVIER WORTHY SELECTED FOR THEIR SPEED AND RETURN CAPABILITY ON TOP OF ATHLETIC PERFORMANCE, PLAYER DEVELOPMENT AND COACHING ARE CRITICAL IN DETERMINING WHETHER A ROOKIE WILL THRIVE, AND VINCENT'S WORK WITH PLAYERS ISN'T JUST ABOUT WHAT HAPPENS ON THE FIELD. HELPING THEM PLAN FOR LIFE AFTER FOOTBALL IS JUST AS IMPORTANT. >> I WAS ALWAYS CONCERNED ABOUT THE CHALLENGES OF TRANSITION. I HAD THE OPPORTUNITY TO PLAY 15. A SPORT THAT WE LOVE KIDS GAME MAN'S BODY AND YOU DON'T HAVE THE TIME TO DEVELOP SOME OF THOSE SKILLS THAT YOU WOULD GET IN AN INTERNSHIP OR THAT YOU WOULD GET IN A NORMAL 9 TO 5 JOB. SO FROM OUR BUSINESS ENTREPRENEURSHIP PROGRAMS BROADCAST BOOT CAMP, AND NOW WE'RE AT A DIFFERENT ERA, LIKE THE GAME HAS EVOLVED, PLAYERS ARE NOW BEING PAID IN HIGH SCHOOL AT THE COLLEGIATE LEVEL. THE ACCESSIBILITY TO INFORMATION IS AT THEIR FINGERTIPS. MANY MANY MORE ENTREPRENEURS, PLAYERS WANTING TO OWN THEIR OWN MEDIA COMPANY. SO WE'VE HAD TO ADJUST WHAT THE PLAYER'S INTERESTS ARE BASED OFF OF WHERE THEY ARE. THAT IS SOMETHING THAT'S DEAR TO MY HEART. PERSONALLY IS MAKING SURE THAT WORKING WITH THE PLAYERS ASSOCIATION, WORKING WITH THE CLUBS THAT WERE ALL IN ALIGNMENT WITH PLAYER TRANSITION, THE INEVITABLE IS GOING TO HAPPEN. AND OFTENTIMES TIMES THAT TRANSITION HAPPENS NOT BY YOUR CHOICE AND ARE YOU READY? AND DO YOU HAVE THE SKILLS TO TRANSITION INTO WHAT WE SAY THE NEW NORMAL FOOTBALL IS EVEN BIGGER THAN THE GAME ITSELF. >> THE NFL ADDS $5 BILLION TO THE U.S. ECONOMY EVERY YEAR, AND THE 2024 SUPER BOWL BECAME THE MOST WATCHED TELEVISION PROGRAM IN U.S. HISTORY. ITS DOMINANCE IS NO ACCIDENT. IT'S THE RESULT OF STRATEGIC MEDIA DEALS AND EXCLUSIVE SPONSORSHIPS. LAST SEASON ALONE, THE NFL WAS PARTNERED WITH 48 BRANDS HOLDING TOP DEALS WITH EA SPORTS, NIKE AND VERIZON, WHILE GENERATING OVER $11 BILLION FROM BROADCASTERS INCLUDING PEACOCK, AMAZON AND ESPN. IT'S MORE THAN JUST A PASTIME. IT'S BECOME A CULTURAL PHENOMENON, BRINGING TOGETHER MILLIONS OF FANS EVEN WHEN THE COUNTRY FEELS MOST DIVIDED. AS EXECUTIVE VICE PRESIDENT VINCENT SAYS, IT'S A TREMENDOUS RESPONSIBILITY TO SUPPORT THE LEAGUE'S POWERHOUSE OPERATIONS, BUT ALSO A SHARED ONE. >> WE'RE WORKING TOGETHER TO TRY TO COME TOGETHER TO WIN A FOOTBALL GAME AND CREATE SOME EXCITEMENT, AND I HOPE YOUR LIPS TO GOD'S EARS THAT THE GAME CAN CONTINUE TO BE A POSITIVE FORCE FOR JUST PEOPLE COMING TOGETHER, CHEERING FOR THEIR CLUB, CHEERING FOR THEIR FAVORITE PLAYERS AT THE SAME TIME. IT'S A DELICATE BALANCE, A DELICATE INTEGRATION OF THINGS THAT WE BELIEVE THAT ARE IMPORTANT FOR THE PLAYER, IMPORTANT FOR THE CLUB, THAT WE COME TOGETHER TO TRY TO RESOLVE THOSE THINGS TOGETHER. IT'S NOT ALWAYS PERFECT AND THERE IS DISRUPTION THAT OCCURS, BUT WE UNDERSTAND THE PLATFORM THAT THE NATIONAL FOOTBALL LEAGUE HAS ON THE BROADER SOCIETY. A PLATFORM THAT GOES WELL BEYOND REVENUE AND PROFITS AND TAPS INTO THE INSPIRATION AND DRIVE THAT NOT ONLY GOT VINCENT INTO THE LEAGUE, BUT GOT HIM TO WHERE HE IS TODAY. I BELIEVE EVERYTHING THAT I'VE LEARNED IN MY CURRENT ROLE WERE ATTRIBUTES AND THINGS THAT I LEARNED IN ATHLETICS. WHAT YOU TWO DID ON SUNDAYS, MONDAYS AND THURSDAYS, AND HOW YOU SHOWED UP ON GAME DAY WAS A REFLECTION OF WHAT YOU DID DURING THE WEEK. IF YOU DIDN'T PRACTICE, IF YOU DIDN'T DETAIL YOUR WORK, IF YOU LACKED IN ON PREPARATION, THEN IT SHOWED UP ON SUNDAY. IT SHOWED UP ON MONDAY NIGHT AND THURSDAY NIGHT. SO PAYING ATTENTION TO DETAIL, FALLING IN LOVE WITH THE BASICS EVERY SINGLE DAY FOLLOWING THIS PROCESS PREPARES YOU TO HAVE SUCCESS WHEN THE LIGHTS ARE ON. BUT GOING FROM THE PLAYING FIELD TO THE BOARDROOM, THOSE SAME SKILLS WERE NATURAL TRANSITIONS IN THE CORPORATE AREA. BEING A GOOD LISTENER, BEING A GOOD COMMUNICATOR, NOT TRYING TO BE THE LOUDEST VOICE OR THE MOST TALKATIVE VOICE IN THE ROOM. BEING A COLLABORATOR, BEING A PARTNER, SHOWING UP EVERY DAY. WHERE I BEGAN, I DIDN'T KNOW WHAT A LEADER WAS. THERE WAS A PARALLEL OF ON FIELD PERFORMANCE WITH LITERALLY WHAT THE IMPACT YOU WERE MAKING ON DECISIONS THAT WERE NOT ON THE FIELD, WHETHER THEY WERE IN THE COMMUNITY OR INSIDE THE LOCKER ROOM. BEING A LOCKER ROOM LEADER AROUND AREAS OF THE COLLECTIVE BARGAINING AGREEMENT HOURS, WAGES, WORKING CONDITIONS AND PLAYER RIGHTS. FAMILY RIGHTS NOW BEING MATURE IN MY CURRENT ROLE, 15 YEARS HERE NOW AT THE NATIONAL FOOTBALL LEAGUE, IT'S REALLY ABOUT PEOPLE AND GETTING PEOPLE TO BELIEVE IN WHAT YOUR OBJECTIVES ARE, WHAT YOUR GOALS AND THEIR WHY. WHY IS IT IMPORTANT FOR THEM TO AT LEAST HEAR WHAT YOU'RE SAYING AND BUY INTO MOVING IN THAT SAME DIRECTION ? >> LET'S TAKE A LOOK AT WHAT'S TRENDING AFTER HOURS. >> SHARES OF TAKE TWO ARE SINKING AFTER IT REPORTED FISCAL FOURTH QUARTER RESULTS. THE VIDEO GAME MAKER'S FULL YEAR FORECAST FOR NEXT YEAR COMING IN BELOW ESTIMATES. AND THE COMPANY SEES NET BOOKINGS FOR THE FULL YEAR BETWEEN 5.5 BILLION AND $5.6 BILLION. THAT'S FAR BELOW THE NEARLY $7 BILLION EXPECTATION. DESPITE THAT WEAK OUTLOOK, TAKE-TWO'S FISCAL FOURTH QUARTER TOPPED ESTIMATES ACROSS ADJUSTED EBITDA AND ADJUSTED EARNINGS PER SHARE. AND THERE'S ONE MORE IMPORTANT THING HERE. TAKE-TWO ANNOUNCED THE HOTLY ANTICIPATED GRAND THEFT AUTO SIX WILL COME IN THE FALL OF 2025. PREVIOUSLY, FANS WERE TOLD THE RELEASE WOULD HAPPEN NEXT YEAR, BUT THEY WEREN'T GIVEN A SPECIFIC TIME FRAME. >> PLUS, SHARES OF CRACKER BARREL OLD COUNTRY STORE TUMBLING HERE AFTER THE RESTAURANT CHAIN ANNOUNCED PLANS TO SLASH ITS DIVIDEND BY ROUGHLY 80% TO $0.25 PER SHARE. THE REDUCTION COMES AS THE COMPANY LOOKS TO SPEND MILLIONS ON UPGRADING ITS BRAND AND STORES, THE CEO SAYING THE COMPANY HAS TO BE BETTER THAN EVERYONE ELSE TO COMPETE IN AN INCREASINGLY TOUGH ENVIRONMENT. >> AND SHARES OF REDDIT RISING AFTER ANNOUNCING A PARTNERSHIP WITH OPENAI UP 14% AS THE AGREEMENT GRANTS OPENAI ACCESS TO REDDIT'S INTERNAL DATA, ENABLING OPENAI TOOLS, INCLUDING CHATGPT, TO TRAIN ON REDDIT CONTENT. THE DEAL WILL ALSO BRING NEW AI POWERED FEATURES TO THE SOCIAL MEDIA COMPANY'S SITE AND OPENAI WILL BECOME AN ADVERTISING PARTNER FOR REDDIT. JOSH HAD SOMETHING THAT REDDIT TALKED ABOUT WHEN IT HAD ITS IPO THAT IT MIGHT. I'M CURIOUS TO THIS KIND OF THING. >> YEAH, YEAH, I KNOW, I'M CURIOUS TO HEAR HOW REDDIT USERS FEEL ABOUT THIS. THAT'LL BE AN INTERESTING QUESTION. >> QUESTION INDEED. >> MAYBE WE'LL HEAR THAT WRAPS UP OUR SHOW FOR TODAY. BE SURE TO COME BACK TOMORROW, 3 P.M. EASTERN FOR ALL OF YOUR COVERAGE LEADING UP TO AND AFTER THE CLOSING BELL.
