Now to yesterdays to 1point loss 201point loss. Every single dow component right now in the red are, but if you go with all the way to the bottom and this has been for much of the session you can see boeing is by far the biggest laggard, down 7. 25, followed by intel down 4. 66 , johnson and johnson, mcdonalds, walt disney, sales, force are the big losers here. Quickly on boeing, the c finishing o said Second Quarter jet deliveries will not show any increase and admitted that cash burn will worsen plus Free Cash Flow wont be flowing this year, it will be negative. Lets bring it out to the nasdaq and the s p. The nasdaq had been up more than 194 points, lost it all and another 103 points. So this is a pretty significant swing here from peak to trough. The s p down 45 points. This makeses sense to check investor or fear. Lets look at the vix at the moment. It is flaring just a bit after having been down earlier today. Im checking the vix right now, up 7. 5 . Still just around 13. 211, thats historically pretty low. Treasury yields, this may be in part why stocks are falling, or treasury yields are spiking right now. Heres the 2year, 4. If 942 . Yesterday the 2year closed at 4. 887, flip it over to the 100year yield, yesterday 10year yield with, 4. 8 at this moment as we anticipated just 24 hours ago on this show, inebb vid yas earnings are grabbing much of the oxygen on wall street, at least they were until people decided to focus on pmi number which came out, that is purchasing Managers Index, and it indicated that manufacturing is stronger than expected. Look, look at nvidia Still Holding on to the 9 plus percent of gains here. The rush into shares of the a. I. Chip king looked like a stampede at a taylor swift concert even as the rest of the market sells off or Peter Frampton concert, depending on your vintage. The stock blasted through the 1,000 mark right at the open and with 58 minutes heft to trade, still stands at an alltime high of 1,037 and change. The lead manufacturer of a. I. Gpus, graphic processing units, that that power Large Language Models shot past both profit and revenue expectationses, scorched the whisper if numbers, raised guidance and announced a 10 for 1 stock split for shareholders of record as of june 6th. Thats the first stock split since july of 2020. Since then look at shares, they have soared rather dramatically, by more than well, thats an understatement, 2,600 percent . The blast radius was far and wide this morning. A lot is reversing as the market sells off, but lets look at the socks index. Earlier it reached a record before reversing course slightly, but you can see the socks index at the moment. Micron, of course, among the names reaching new alltime highs earlier before giving the gains back. Same with innovate. Microsoft. Microsoft has a huge invest vestment in openai. It has been dragged down by the rest of the market, now at 425 and change. I just said far and wide at least when it comes to nvidia and the expectations and where that sort of blast zone reached. Look at vertiv, the success leon cooperman recommended during his last two appearances on the show. Its a data center reit. Earlier it clawed dramatically to a brand new record, right now its Still Holding on to just about a percent of gains to 101. 41. Shares of foxs Sister CompanyNews Corporation, that was earlier moving higher. It, too, has reversed. But News Corporation and sam altman, ceo of openai, by the way, sam was the first in line for the envied ya h2000 processers, altman appear exclusively yesterday to unveil a licensing deal with News Corporation the train its chat bot, chatgpt. Last night on the earnings call, nvidias ceo jepsen wang said theres not just general seven wang said its in the just a. I. Companies benefiting. Heres what he said. Theres also a long line of generative a. I. Startups, some 15,000, 20,000 startups, that in all different fields from multimedia to digital characters, of course, all kinds of design application and productivity applications, digital biology. The movement, the moving of the ark v industry to video so that they can train end to end models to expand the operating domain of selfdriving cars, the list is just quite extraordinary. Were racing. Liz one of those startups in a. I. Is already well positioned for an nvidia customer. Coming up, the ceo of jensen wangs favorite chat bot no, not chatgpt, its called perplexity. Its stunningly good. The ceo is here in a fox business exclusive coming up, dont miss it. With so many crosscurrents right now, lets get right to the floor show joined by trader Keith Fitzgerald and steven sutt meyer,back of america chief ec with i think strategist. Steven, the worst day for the dow since march of last year, also some pretty significant drops in the russell 2000. To what do you aa contribute this selloff thats happening right now . Well, pretty much the fed minutes yesterday, i think, started this, and i think investors this morning with the opening on the upside expected nvidia and a. I. To save the market. And then if pmi threw war on. That i think its very important to note though that coming into this technicals were quite solid, and today technicals are not. I mean, even with the market up, breadth was negative and it just kept getting worse and worse liz let me just define breadth, the advanced decline line where the leaders sometimes, or or at least lately, have not been outpacing the laggards, the decliners of all of these stocks. So what do you mean by that . Sure. Liz were looking at a chart here. So this decline line, oh, i dont know which one that is. That is a u. S. Most ab active advance decline line so it takes breadth and volume. So when thats going up, more stocks are going up on high volume. And theres a bit of a divergence on that. So that that is one sign that the market might struggle. But i will say this is one negative in a slew of positives. If you look at the traditional advanced decline line, the s p, you have more stocks going up than done. That moved to a new high prior to the s p last week. Same with the nyse. If you look at cumulative net up volume, its basically the advanced decline of volume. That goes up, that means more accumulation are or buying soling yule in stocks versus selling volume in stocks, and we got thosals last week too. Those signals. Liz today we are looking at a selloff, how much do you think this has to do with the memorial day weekend, people gone til tuesday . I mean, with a little bit to have news drama weve gotten, i think that might have something to do with it, yes. Liz keith, youve been right, right and right on nvidia, but i have to say i was looking specifically at some of the laggards on the nasdaq 100. A lot of them are chiprelated or focused on chips. Everybody from on semiconductor, kla, global foundries down, intel not looking healthy, now down about 4 . Tell me if this is just that moment in time where people realize that it has been a bit bubble bubblicious. I wouldnt use the term bubblicious, but i would say this is the moment in time where its become abundantly clear to anybody not paying attention to nvidia dominates the scene. It is clearly leading the race, and you want to get on that horse if the race continues. Liz so is this a buying opportunity . People who thought that amd was too expensive, they have an opportunity now. I mean, slight. Its down a couple of percent. Well, not only do they have an opportunity with a a md, which i also own, nvidia, which i also own, they have an opportunity to correct something which is their omission or their lack of being onboard. The train is leaving the station. A. I. Is going to power the markets for generations. You heard jensens comment about it. They are racing to keep up. Liz yes. That is like an all you can eat buffet, and any investor thats serious about building a future needs to listen to that a kind of commentary. Liz lets talk about the s p 500, stephen. Yesterday Liz Ann Sonders of. Schwab with was here. She pointed out that x some of these real momentum names moth, google, meta, nvidia microsoft smci even, that about, you know, theyre not looking so healthy. Right. I mean, this is a megacap market, and big, longterm bull markets which we believe were in are megacap markets. In fact, we actually think that, believe with it or not, a meltup is coming for the s p 100 relative to the s p 500. The ingredients are there. Were not concerned so much about small caps lagging or equal weight lagging because if that tends to happen in more bear everybody periods. I mean, think about 20002007; you had leadership from small caps and the equal weight, and the market was in a bear market so we, overall, we like the market. Were just seeing this as noise. We think seasonality supports a summer route, especially in a president ial summer rally. Especially in a president ial election year. Liz do you agree, keith . Absolutely. Stephen makes a really, really sharp point here. The technicals are quite different from the economic backdrop or even many of the broader stocks. Not all tech is the same. Look at boeing, for example. That stock is on tough times. So youve really got a distinguishing, you know, need in the marketplace. You want to go where the moneys going to be treated best, you want to be in line with the major themes of the marketplace, and there are still a lot of companies in those megacap world. We agree with that sentiment, i think theres getting ready to be a meltup. Liz meltup. Okay, well, right now, i couldnt wouldnt call this a meltdown, a 610point loss is a 1. 5 drop. Under 11 for the s p which earlier 11 put s p. Give me your final thoughts, steven, on where investors should be going. You as a technical analyst. We believe in Growth Stocks or or value stocks. We believe in large caps over value, large over small. So we like tech, semiconductors, selected communication services. But even prior to this decline, i mean, if youre a stock pick orer, you can find financials that are coming out of big base patterns and participate. You can find some industrials that are breaking out and can participate. So i think this is where Portfolio Managers actually can make, beat the bench mark if they can find the right stock, because theyre there. Every sec for has them. Liz stephen, keith, or thanks, always. Stocks are in the red after hotter than expected manufacturing data feud higher for longer Interest Rate worries. Nvidia a hit a record high, blasting through 11,000 after a it 1,000 after it raised its outlook, and boeing dropped after it said it is unlikely to generate far full year 20 cash full year 2024. Some say theres a chat bot that even better works than chat. Gpt which kicked off the Artificial Intelligence arms race. Next, weve got the ceo of perplexity a. I. , hes going to tell us what makes his search product which nvidias ceo jensen wang, by the way, says is his favorite, different from and better than all the others. Its a fox business ebb collusive. You know, we talk a rot about the bots etf, but aiq, this is the a. I. And big data everybody tf, is actually outpacing bots over the last year with a 36 gain there . 34 gain . Spike, compared to bots 19 gain. The claman countdown is coming right back. Stay with us. We love being outside, but the sun makes our deck and patio too hot to enjoy. Thanks to our new sunsetter retractable awning, we can select full sun or instant shade. Its 20 degrees cooler and you get protection from harmful rays and sun glare. When you call, well rush you a special 200 discount certificate with your free awning idea kit youll get your sunsetter for as little as 799. But, this is a limited time offer for over 20 years, sunsetter has been the bestselling retractable awning in america call now for this free awning idea kit packed with great awning solutions. Plus, get this 200 discount certificate to get your sunsetter for as little as 799. There are so many incredible styles to choose from. Get a custombuilt awning, without the custombuilt price turn your patio into an instant oasis. Add led lighting for evening enjoyment. Call now for your free awning idea kit, local dealer info and 200 discount certificate. life is better under a sunsetter grandpa vo im the richest guy in the world. Hi baby woman 1 vo i have inherited the best traditions. woman 2 vo i have a great boss. Its me. man 1 vo i have people, people i can count on. man 2 vo i have time to give grandma vo and a million stories to share. grandpa vo if thats not rich, i dont know what is. vo the key to being rich is knowing what counts. Liz yes, weve got a sell off. Im just checking the dow, down 597 points, so were off the lows. Two major names forging a pact between journalism and Artificial Intelligence. If openai announcing it is teaming up with wall street journal parent News Corporation, the Sister Company of fox business and fox, in what the journal, wall street journal says is a deal that could if be worth 250 million over 5 years. Openai will have access to News Corporations unpublications and journalism archives to train its technology and answer users queries. In return, openai will share its technology with News Corporation. Yesterday on fox business larry kudlow asked openais cem about it, and sam altman talked about the true value he sees. Obviously, news corp. Has phenomenally great content, and so we saidinginging lets figure out something that makes sense. I think very high quality information from trusted brands does really matter to users in lots of ways, and being able to display that will add a great deal of value to the service and, i think, is good can to do for the world. Liz chat. Gpt currently leads the chat bot wars, but perplexity is fast emerging at a Silicon Valley favorite whose fans include nvidias ceo, jensen wang. Perplexitys ceo is near a fox business exclusive just a day after blowout nvidia earnings. Im calling you guys sort of the adult in the cat bot room because your answers feel way more legit than anything else aye try. Where is perplexity sourcing its answers for users prompts . Is thank you for having me. Per if plexty sources the from basically throughout the web. Its best described as wikipedia and chat. Gpt having a baby. But the data part comes from the whole internet. So you always get an answer to whatever you ask as if somebody did their research on the web, Read Everything thats relevant, facilitied autonoise, the spam, the ads, only took the good content and gave you wikipediapagelooking answer. Liz and you also give the sources which, unlike chat gpt which answers questions, does not give the sources. And ive often a found some of it incorrect. So what has been the actual focus for you . Is it make sure everything is factual . And how have you built the platte form to insure that . Platform to insure that . Look, we decided that this is a longterm journey, right . Its not a problem that we solve in a day or in a year. There are two ways to reduce the stakes. One is to insure resource content from higher targeted web sites and publishers, and the second thing is to also insure that, like, our capture of those sites, all the index is as fresh and uptodate and detailed as possible. And then making sure that the model that ingests the content from these sites is smart enough that it doesnt make up stuff. For instance, theres running around now that googles a. I. Overview asks you to put glue on your pizza if your cheese not sticking to it. [laughter] these are the kind of things because it sourced something from a random reddit joke, it doesnt understand that its a joke. Right . There was another example where someone, was, like, the blinders on my car are not working, and its suggesting some reddit joke as an answer. So the model also has to be smart enough and the content has to be fresh and uptodate, and its a connen instant challenge to do this and also unsure the target source. Insure the target source. Liz can i assume you dont source mig from reddit . Because you do have chatgpt and some of the others striking deals with reddit which is a little disconcerting thiess for somebody whos in the fact business because you want actual facts versus opinions or jokes. Its a mix mixture. Some people like looking at reddit for i Movie Reviews or to when youre trying to buy a product, people do use reddit on their google searches the see what people are saying about the product because they would rather believe that over what the advertiser wants them to believe. So there are some places where with the reddit are useful, places where reddit jokes are not for factual accuracy, so you have to strike a good balance there. Liz how do you avoid stepping into the hot hole that google stepped into potholing that a google stepped into which was the hoo hallucinations or maybe it was coded that way, built that way when people did searches of George Washington, a picture of at least certainly the outfit George Washington wore came up, but George Washington was not white as a he was in true history, he was black. Or the pope was a female. How grow make sure that that doesnt do you make sure that doesnt get salted in to perplexitys serbs . This is where searches . This is where its very important to remember that your is to serve accurate answers, accurate information, right . And theres this whole problem in a. I. Called the alignment problem which is what are the fundamental values youre going through, and theres two dimensions, helplessness and harmlessness, and which dimension do you want to err more towards. And we believe, like, in general the reason people would use perplexity is because they just want answers. S hay dont want opinions on what we with think the world should be or Something Like that, and and this is where i feel like, you know, the first rule out of google gemini have gotten wrong. Even if you with ask controversial topics, gemini either refuses to answer or morally, like, tells you what to and what not to ask. We have taken a position that its not many our interest to [inaudible] ing. Liz when are you going public . I know that tech crunch said you guys had raised about that 250 million in a recent capital raise. Youve got a valuat