Power Lunch - The Dow rallies while the Nasdaq lags as investors rotate out of tech into more defensive sectors 6/4/26

Episode Date: June 4, 2026

The Dow Jones Industrial Average rallied to a new all-time high while tech stocks underperformed, sparked by a sell-off in Broadcom.  Brian Sullivan and Kelly Evans focused in on the state of semiconductors and questioned whether the tech trade is in trouble given the rotation away from chip stocks on Thursday. Meanwhile, Brian sat down for a one-on-one exclusive interview with Diamondback Energy CEO, Kaes Van't Hof, and the anchors were joined by Blumhouse Productions founder and CEO, Jason Blum, to discuss his films’ recent success at the box office. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The Dow rallies, the NASDAQ has turned around, and the S&P 500, it is right on the razor's edge of tying a 41-year record. Welcome to Power Lunch, everybody. I am Brian with Kelly. The S&P 500 is not going up much, but with any gain, we are now tens of a percent away from its 10th straight week of gains, but it's not all positive. One of the hottest trades of the year getting wrecked Dan Niles is here. What is working today? Healthcare, seeing its best day and more than. than a year. United Health powering the Dow higher. That's how we've gotten 800 point gain. And

today Bank of America says it's too cheap to ignore. That also has Humana and Centine hitting 52-week highs. Plus the AI revolution, how we power it, the disruption and the infrastructure required, and the names that should be on your watch list. Morgan Stanley's global head of thematic and sustainability research, Stephen Bird is here. All right. Let us start with the big stock story of the day, it is one that is trying its best to hold the S&P 500 back. It is Broadcom. As you can see, the stock is down about 11.5%. Along with Sienna and Micron, it is trying to pressure the entire market. So what happened? Well, Broadcom missed the street's expectations on the top line and maybe more importantly, it didn't raise its full year revenue target for AI chip sales. Is this something

that you should worry about bigger? Or is this a Broadcom specific? specific story. Joining us now, portfolio manager and founder of Niles Investment Management. Dan, I think that's the question everybody's sort of trying to figure out. It's like a one-off broadcom thing. And by the way, it's not even not much of a thing. It just didn't raise guidance. Or maybe that feared canary in the semiconductor coal mine. Well, quite honestly, if you're a semiconductor bull, you should be absolutely ecstatic with what's going on. Okay, why?

Well, Brockcom's down 12%. The semi-index is down one. Like, that totally blows my mind that given you saw an 8.5% gain in the semi-index in three days this week before today. And it's up 95% from the closing low on March 30th for the SMP. If you're a bull, this should make you feel like you're bullet. because it's absolutely stunning that the semi-index is not down more. Now, today's one day. We'll see what happens tomorrow.

Obviously, you've had a lot of people on your show that, you know, focus on it's all a fraud, and this is the biggest bubble ever, and it's going to break any day now. And so if you're thinking that, like, today should absolutely make you despondent, because arguably the hottest trade or the one that everyone agrees on is all the hyperscalers are raising CAP-X. They're all making their own custom chips. Bracom's the one that's working with all of them, and it gets hit, and nobody cares about anything else. So this is actually a pretty darn good day if you're a semiconductor investor. Dan, I think what's interesting is that I hear very few people really saying, I hear maybe kind of the big macro people saying it's a little

bit like, you know, 99, but most people are not saying because we all see the earnings. We all see the earnings and these market caps and these valuations. And it's, it doesn't feel that. The earnings are crazy. It's like the people who say we're in an earnings bubble. Yeah. I mean, you're exactly right, Kelly. And that's why I think you had me on a few weeks ago. And my view was, and I wrote this up on March 31st, is that history may not repeat itself, but it often does rhyme, meaning that you had macro scares in 1997 and 98 and, you know, Asian currency crisis and then the Russian bond default in 98, and the S&P still finished those years up 31% and 27%. And so if you look at this year, yes, you have this macro scare with Iran and oil prices. But underneath that, you also have

agentic AI that was formalized with OpenClaw on January 30th. And from the end of January to the in March, token production doubled in two months. And so to your point, Kelly, that's driving a tremendous amount of earnings growth. And so if you look at, if you say, hey, I got this mega cab company growing revenues at 80 percent, and the multiples 25 times, there's no way you can think that screams a bubble. And obviously that company isn't. There's now let me jump into the other side of it. Because you brought up the token issue, we're just talking to Deirdra about how companies are looking at these bills and saying, I can't keep this going. And they're even looking to cheaper deep seek Chinese models to get the work done. So that feels like it could be a real threat to

this earning story. Well, well, you got to think about it this way. What are you going to cut? Well, you're going to get away from token maxing, obviously. But that wasn't a bad thing in the beginning because you want to get all your employees using AI. Where are you going to go cut? Well, you're probably going to go say, well, what IT services can I get rid of? Because I don't need those consultants because I have chat GPT or Emporopic. What software can I go ahead and say, like, this isn't useful? Yeah, security, I need that. But do I really need this other stuff that isn't core to the database and people, right?

You need as many bodies in your organization. You have to go cut somewhere. So there are going to be cuts, but this is like saying, well, I'm going to cut back on my internet spend in the late 90s. Nobody cut back on that. It kept growing.

You just grew at a slower pace than you thought. I guess I have two more macro questions to wrap it up here, Dan. Number one, are you a Metallica fan, the band Metallica? I love her. I like Ozzy Osbourne better, but yes, I like Metallica too.

Rip Ozzie. Well, I bring up Metallica because the song, nothing else matters. Okay? And I'm just thinking to myself, I don't know what matters right now in the stock market. That's why I bring up the reference because I'm confused. Broadcom didn't raise guidance.

Stock was down whatever 20%. Now it's down 11. The markets come back. The NASDAQ is higher again today. I don't know what really matters for the stock market. It doesn't seem to be Iran. It doesn't seem to be the Federal Reserve. Is it literally only AI that matters for the stock market and nothing else?

Kelly gave you the answer just a few minutes ago. Kelly told you it was earnings. Kelly Evans is right. Earnings this year are up 25% for the entire S&P 500. So if you just sort of say, well, if the multiple doesn't change and I have 25% earnings growth, well, why can't the SMP be up in line with earnings this year? Because if you believe like I do that oil will eventually come down, and I mean eventually, because you know you have money,

midterms coming up, and if oil's up here, the sitting party is going to get destroyed at the elections, then this is going to keep going higher, especially if you are getting these massive gains from Magentic AI. You haven't seen the full impact of agentic AI in four months since open clog off warnings. There's no chance. You're maybe when you get to anniversarying that, which is my view, which is, you know, early next year, then you really start to worry about this because you, you know, peak the comparisons. But until then, corporations are going to continue

to adopt this, and it's going to continue to drive demand. I'm not saying you're not going to see carnage in other sectors because you have to, to Kelly's point, you've got to cut back somewhere, right? And I think it will be in people, IT services, pockets of software, where I don't think this is done yet.

But I think until that point in time, earnings is what's going to drive this, and earnings growth driven by productivity, driven by AI, is still very strong. All right. We hope so. Everybody hopes so. Lots riding on it. Dan, thanks very much. Appreciate it. Dan Niles of Niles Investment Management. Let's bring in our next guest now, who has been nodding vigorously to this discussion, by the way, is buying more chips on today's dip. See what we did there. Allie McArney is managing director at UBS Private Wealth. Allie. It's great to see you here. And it was when we were talking about earnings that you're saying yes. So is that why you're buying the chip stocks? So like I feel like today is one of those losing the sort of forest for the trees kind of days. Earnings is everything. Most of our investment life, we look and we are trying to make up reasons to be bullish or bearish because we don't have earnings like we have now. So the concept of being in this moment where earnings is everything and they're extravagant.

So I was nodding both because I agree completely with the conversation and because I didn't know if I have anything to add to it. Well, I have plenty of questions. Please. Which are, okay, fine. So the earnings are amazing and all that. But we all know, right? This is like kind of classic lunch table conversation now. And if it's all priced in, then what happens next?

That's what I wonder about. Well, look, you only know if everything's priced in and if the multiple is appropriate in retrospect, right? And every conversation that we have about multiples is use this frame of reference of what should it be or what is it to historical average. So right now, the NASDAQ is trading about 27 times. It has traded about 25 times as its historical average. But have multiples increased over time along with a. earnings as productivity has grown, et cetera? Do multiples look like they look like in the 1920s or the 1980s? No. So if we're in a position in the evolution of this revolution of AI, where we are not only

seeing an earnings boom, but we are seeing probably a sea change in what multiples will look like going further, then to me, whether we're talking about the semis or whether we're talking about, you know, many parts of the value chain and even extending it to financials, health care utilities, this then becomes a buying opportunity. Kelly Evans agreed with Kelly Evans. Do you agree with Kelly Evans that it? And Dan Niles agreed with Kelly Evans about earnings, don't they? You were right.

Exactly. I mean, listen. But if we just knew what they were always going to be, nobody knows that. No, but the numbers have come out and the guidance has come out. Yeah. So, again, we have 20, 38% for the NASDAQ earnings. year, 24 for next year. S&P was on track first quarter for 29, 20 for the year. How, though? Like, everybody's wait, not everybody. A lot of people are waiting for the economy to collapse.

Like, oh, higher gas prices is going to kill the consumer. They have not. Like, what's the AI is going to kill every job in America. It's hurt some, but it is not overall. I, I, the job numbers are fine. They're not great, but they're fine. Earnings numbers are spectacular. People just don't seem yet still capable, ready, or willing to accept the fact that the economy, despite all the haters, seems pretty good. I think that we're at this point in this country, this is a larger conversation socially and politically, where things feel uncomfortable and tenuous. And so it's hard to separate that feeling and that ethos from the markets and the macro.

And so I think people are focusing on that experience and what is an absolute, you know, whether you call it a K-shaped economy or an e-economy and the difference between the haves and the have-nots, when you look at something like oil, for example, and Dan mentioned that, you know, to invest in this market, you have to believe that oil is going to come down. You also have to understand that oil is a percentage of what we spend is a fraction of what it was 20 years ago and a fraction of what it was 40 years ago. It's come down from like in the 80s. It peaked a 10. It's now about four. I've pointed that out many times. Car mileage is doubled in that time. Diesel truck mileage is doubled.

The price of diesel fuel, it matters, but it doesn't matter like it used to. People don't drive as much. Work from home. The average American uses 50 gallons of gasoline a month. So the price of gasoline goes up a dollar, it's $50 a month for the average driver. I'm not saying that's nothing, but I think with income gains and tax rebates, that $50 a month, by the way, everyone's laughing at me because they're, their health care, their auto insurance, their home insurance has gone up way more than that in the last

five years already. At 50 bucks a month, I don't think is going to break the economy. With this kind of momentum and secular change, I think that's what you have to focus on. And I think that moments like this remind you that investing is not an always win, right? And so there are days where the spirits are going to move a different way. and there are things that zig when other things zag, and, you know, courage and capital are what create long-term wealth. And so to use a moment like this and not necessarily to be greedy about it or, you know, to be short-term about it, although this is a market that seems to have because of the dispersion among stocks like you're seeing today and among hours and minutes in the day does give you the

opportunity. But this is a long-term focus on earnings and creative destruction that is also going to, you know, be the tailwinds behind seismic secular. How about 8% comp at Costco last month? 8% U.S. Comp. I think it was actually even stronger if you take out fuel. That's how strong, to your point about the haters on the economy. And look, we can all be skeptics. I actually shocked it. The consumers held up this well. And 8% comp tells you, I think, think everything you need to know. So anyway, Ali, thanks. It's good to have you on today.

Ali McCartney of UBS Private Wealth. All right, from stocks to bonds, because the Chicago Mercantile Exchange's probability of a July rate hike is on the move. Rick Santelli joining us now with more. How serious are these odds and these bets that rates are going to be raised, not cut? Well, you know, I think you have to pay definite attention

to the direction. But do keep in mind, we have the June 16-17 meeting in front of the July 28 and 29 meeting. So let's look at the animal itself. This chart is a one-month chart of July Fed Fund futures. And I'm going to make this real easy. Remember, it's like a T-bill. When the price goes down, the probabilities of easing or more of a hike increase. So less easing, potentially, or more of a hike. When the price goes up, it's either more easing or less of a hike. So if you look at the far left of that chart, the high is May 8th. And on May 8th, the probabilities were 4% of a rate cut. Okay, now let's look at right about in the middle.

The low on that chart is May 22nd. On that low, the probabilities were 16% of a hike. Today, as you see, we are now 8% of a hike. the market's rallied, lowering that percentage a little bit. And the reason it doesn't quite look like a scale of equality is because every day that ticks off changes the math rather dramatically. But the point here is that it's in flux. And to take all that in consideration, what I see here is the market is a bit undecided. And I think that makes Fed's Williams comment yesterday that much more important. Rates are about where they should be. The Fed probably doesn't need to do much,

but there is a probability as slight as it might be that two meetings down, about 8% of a hike. Indeed, as we said, 8% comps at Costco. We've got estimates over 100K jobs. We'll find out tomorrow morning. But for now, Rick, thanks very much. Rick Santelli. And we're just getting started here. Still ahead, crypto under pressure with Bitcoin headed for its worst start to a year since 2022. Longtime Bitcoin believer Anthony Pompiliano joins us with his outlook and the moves he's making now. But after the break, profit taking in this year's hottest AI infrastructure trades, including terrible cipher digital, Hut 8, all lower. Morgan Stanley's Stephen Bird remains bullish on all of it.

He joins us right after this. The Dow is up 830 points or 1.6%. The S&B and NASDAQ are also now higher. And I want to remind everybody that if we end the week higher on the S&P, it'll be a 10-week win streak, something we have not had since 1985, when I'm told Kelly, a lot of really good things. A lot of awesome people. A lot of awesome people were born in 1985. Meantime, two companies we had on earlier in the week on this show, Cypher Digital and Terawolf, they used to be strictly focused on Bitcoin mining. It's why you didn't hear a lot about

But now they and Hutt 8 and some others have emerged as critical players in the AI space, shifting their business models from Bitcoin and crypto to AI. We had Cypher Digital CEO Tyler Page on the show yesterday, and here's what he had to say about this shifting trend. To make Bitcoin mining work, you have to have really cheap power. So where is there cheap power in locations where there's an abundance of generation? and not a lot of demand. And so what made us see the potential for this trend to change was we saw the explosive growth in AI. I mean, a completely convex adoption curve. Also earlier this week, Morgan Stanley up against price target for Terowulf and Cypher Digital.

That was actually yesterday, citing in part the company's recent acquisitions, adding value to shares, and also kind of the way that revenue has changed. Joining us now is the author of that sizable, but in the way. Interesting note. SBI, sizable, but it just-swim it down. We read this stuff. Stephen Bird, the global head of thematic and sustainability research at Morgan Stanley, literally reading your note two nights ago trying to pay attention to my family as well. So, Stephen, you owe them an apology. I'm kidding. I'm joking. Stephen, welcome. Thank you. What was the core, the notes complicated, the way you kind of change some revenue assumptions on the Bitcoin to AI side. What was the basic reasoning behind the price? price target increases. Negotiating leverage. So essentially these Bitcoin companies are in an excellent spot. Everything you all been talking about today in terms of growing demand for compute means the power

bottom luck has to be addressed. And so what we see is better leverage and that means more of these deals will be guaranteed by the hyperscalers. The cash flow yields will be better. And we're also seeing growth. What Tyler, for example, yesterday, they've done a fantastic job of adding to their megawatts. Same with Terawolf. And we're seeing that as well. So if these companies actually grow that power portfolio, that's a plus as well. And this is a critical point. And maybe this is WBI. It won't keep it interesting because using the balance sheets of the Googles and the Amazon's of the world. So if you're a Terra Wolf or if you're a Cypher Digital, if you're a Hudd, if you're anybody else, what you need is these companies to come in and say, build us the power, we'll guarantee it.

We're going to pay you. Don't worry, we're going to cover the cost. And more importantly, you can use our pristine double AAA balance sheets to get this done. If they don't have that, things look very different. That's correct. That's correct. And I want to bring in another Metallica song into this sense we're on the theme. Wherever I may roam. So wherever the hypers go and they need power, they're going to look to who has the power access. That tends to be these Bitcoin folks.

They have the access and they're willing to pay a lot of money and guarantee the cash flows. I mean, does Galaxy Digital, did you look into that? It's a fascinating. Novigratz talked about this, the day that company IPOed, which was still kind of when crypto was hot. And all he wanted to talk about was their AI. I think that was the deal with who's the big. Anyway, that business model, even one of the kingpins of crypto has kind of shifted. Absolutely.

And that stock has been overlooked because it has so many other businesses. But Galaxy has a fantastic opportunity, mostly in Texas that is ignored by our investors. They tend to go to the more peer plays like the Hut, like Seifer. And they've overlooked Galaxy. But Galaxy has a phenomenal growth outlook there. Well, have they overlooked it? Because Galaxy Digital is actually looking at the Bitcoin complex today. Galaxy Digital stock is up 51% this quarter.

Almost every other Bitcoin play is down. Yeah, fair point. So maybe people are listening to, you know, Stephen Byr. They're starting to see, I'd say, if you look over the last 12 months, it's up much, much less. And I just, in dialogue every day with investors, I just don't hear Galaxy come up as much as it should. I think that will change, especially given their text. this position. And we hear that's where Texas is where, Tyler, yesterday was talking about where, so I love the way that you call this the power landlords, which suggests that these companies

themselves could exert some power and authority over the entire AI trade. We read in the Wall Street Journal today that we're losing, we're falling behind the country is and trying to build out data centers. How can these players and others actually help to get more capacity going? It's a great question. So it's not just the power. I think these Bitcoin folks are going to gather the labor. And labor is. such a massive problem. These Bitcoin companies like Terawolf have done a phenomenal job of gathering that critical mass, in part because when you look at the background of the manager team of Wolf or Cypher, they have a lot of power background and they're used to building very complex

projects. That is a huge plus here as well. So is there any other companies aside from Galaxy that investors right now are overlooking. You raised your target on Cypher, you raised your target on Terawolf, you're bullish on Galaxy. Yes. Anybody else from missing? There is one that, trades very cheaply that's been overlooked, which is BitDeer, BTDR trades at a very low EV to watt basis. They have done zero deals, but they've been very public that they are very close to signing their first deal in Norway. That's a big catalyst. The market cap of BitDeer is a small fraction of the others. It's been overlooked, but they're about to really catch up. And the basic idea is we need all of this power. Not a little bit. We need all of the power for all

the Bitcoin miners. And if that happens, the Bittier multiple could be pretty same. The stock trades at around $3 per watt enterprise value. The deals we're seeing are creating value of $15 to $18 a watt. That is one heck of a delta, which I would expect to get compressed. I love just putting it in those terms, you know, dollars, you know, the value of the company in dollars per watt. Yes. And it really does hold in the sense that these deals, we can analyze pretty precisely. So when I say 15 to 18, because it's long-term cash flows, we have really high confidence in that number. And that's why they love the business. Absolutely. It was an old punk rock singer, The name of Mike Watt, by the way, had an album called Ball Hogg or Tugboat, but nobody knows anything about that.

If only we can play music when we reference. We really, at least 20 years ago reference. I'm aging and dating myself, but I don't care. Stephen Byrd, we care that you're here. Thank you. Thank you very much. Thank you. All right.

Up next, the CEO of one of the largest oil producers in America on prices, production, Iran, and more. All right, let's stay on the energy story. Oil is down a few bucks right now. Gasoline prices, thankfully, slowly continuing their decline. But remember, the Iran situation remains risky, with a very, very fragile ceasefire and heavy U.S. naval presence in the Persian Gulf. Earlier today, we spoke with the CEO of Diamondback Energy and asked him how the Iran war is impacting not only his company, but the entire energy market. Industry experts have been a bit flummox. on where prices are. I think there's a lot of things happening, you know, beneath the surface, adapting around the world to either a little lower demand, barrels moving, you know, to different

places around the world. But this can't, you know, go on much longer because at the end of the day, you know, this supply hits the greatest supply crunch in history by a multiple, you know, it cannot be sustainable with an economy that's growing. Yeah, and to that end, Dan Yergan, the great Dan Yergan, I'm sure you know personally, had an op-ed in the Wall Street Journal today, basically saying, listen, this is severe, and it's going to take months to get back to, quote, normal when if this ends. But he also argued that this is not like the other supply shocks, particularly like the 1970s because we have new pipelines in Saudi Arabia and UAE. We got more fuel efficiency, et cetera. Would you agree? I mean, you've been doing this a while. Is this the

same as it was in the past or are things different now? Well, you know, I'll always trust Dan and what he has to say, you know, he's, he's one of the foremost experts in the, in the industry's history. And I think he's right in a lot of ways, but we're kind of working through a lot of temporary solutions that that can't be permanent, right? You know, I get that there's barrels moving east-west and Saudi and some clear in the straight and UAE. But at the end of the day, you know, the 20 million barrels a day of crude and products used to move through the Strait of Hormuz on a daily basis, and that number has been dramatically reduced. So I think we're, you know, I think the industry and the sector's done well buying time, you know, U.S. refiners running flat out,

U.S. production where it is, you know, U.S. inventories being where they are. But, you know, that can't last forever. And then there was a report out today that some in your industry, maybe you, Case, have been talking to the president, and arguing that if things continue, we're going to see a big price spike back to above $100 or higher per barrel. Have you talked to the president? Would you agree with that sentiment? Well, I'm a little low on market cap to be speaking with the president on a daily basis,

but I do know the president does speak with a lot of our industry's leaders, and they are expressing their concerns on timing, right? And I think, you know, some of the larger companies have a direct dialogue with, with the administration and I've been kind of echoing the same comments I've said today. You know, we're doing everything we can to buy some time here, but we don't have an infinite amount of time. All right. There is much more to the interview with the CEO of Diamondback Energy and to see the entire conversation, subscribe to our weekly piece. Go to CNBC Power Dash Insider or scan the QR code that is on your screen right there and it will take you there.

You know, he de-emphasized his market cap, but they're one of the best performers in the energy space, this company, it's what they do. It's almost like he has a whole different approach to the traditional energy model. And their shares, I mean, the investors have been rewarded throughout all the ups and downs and the oil price. Yeah, I don't want to speak for Kais Fant Hoff, and I appreciate him coming on. I think he's just saying, well, you know, we're not Exxon. We're not Chevron. We're not a Conoco. Those are probably going to be the first calls that President Trump will make. But if he hasn't already, the president might want to call them. All I'm saying is investors are probably like whatever you're doing, just keep doing.

Well, they're also based in Midland, Texas, right? They're not based in Houston. So they're in the fields every day. They live there. They work there. So it might be a little bit of a different conversation. Good point. Nice returns as well.

Crypto winter is turning colder with Bitcoin below 64,000 now. Is this a canary in the coal mine for risk assets or is it an opportunity to buy? We are going to ask crypto investor Anthony Pompliano about that next. Bitcoin falling below 64,000 earlier as the crypto market has erased more than $2 trillion in value since the record high back in October. Billionaire entrepreneur Mark Cuban recently sold most of his Bitcoin position, saying the asset has, quote, lost the plot. Fund Strats, Tom Lee, called Cuban's exit rage quitting, arguing that kind of move often happens

near the end of a crypto winter. Joining us now is Anthony Pompliano, the CEO and chairman of ProCap Finance. You look like you're running for... This is not a big, Anthony Pabloina, what is going on? You look like the most mainstream financial guy. Where's the T-shirt and like the laser eyes? This is what tells me the crypto's over. Well, I tend to think that Bitcoin is maturing into a traditional finance asset.

And you can see that because Larry Fink wants Bitcoin and many other financial institutions want Bitcoin as well. And if you continue to see Bitcoin's adoption, this is what mass adoption looks like. This is what Bitcoiners have been talking about for a very, very long period of time. And I tend to think that both Mark Cuban and Tom Lee are right. is that there are some people in the Bitcoin community that were the hardcore kind of libertarian, decentralized maximal, you know, believers. And they are not excited about where Bitcoin is headed. But there's also a ton of people who have a lot of money who understand that there's a need

for a decentralized digital, non-sovereign asset like Bitcoin. And they're starting to put in their portfolio. And so I think Bitcoin's going to be just fine. I mean, it could be. It could be. This could be another crypto winter. The whole point of crypto winter is that all the haters walk away. And then the hoddlers, well, all this language we used to use all the time,

emerge triumphant and victorious with, you know, 100x outperformance of traditional risk assets. But I just wonder if Bitcoin winning and becoming mainstream ends that story. Well, look, I think that it's all a relative game. If you want to go and put your money into sports gambling or a number of other, you know, high risk, high potential reward type things, there's plenty of that stuff in society. But I think that people forget Bitcoin is a savings technology. If you take your hard-earned capital, you continue to put it into an asset that is compounded at 10, excuse me, over the last 10 years is compounded at 60%. Over the last three years, it is compounded at over 33%. It continues to go up into the right. And if you just zoom out for a second, everyone who is saying that Bitcoin is somehow impaired, Bitcoin is over, Bitcoin is dying, Bitcoin is going to zero. Show me what has changed. The network is still decentralized. The network still continues to Bruce, block after block of transactions. The network continues to do everything.

it is designed to do. And more importantly is the U.S. government, whether Republicans or Democrats are in office, are going to print money. And so Bitcoin has no top because the dollar has no bottom. And I think that ultimately, you are going to see that we have an asset now, just like real estate, just like gold for other generations, Bitcoin is this generation's asset that they can protect themselves from that undisciplined government spending. Yeah, as long as it holds its value around it. I mean, from my outsider's point of view, I think it was always an adoption story. And I think that adoption story got to an apex, and it's going to be hard to ever repeat that. But that's just my point of you.

I'm curious what you think about Michael Saylor, who says basically the crypto, people are that $2 trillion is shifting out of crypto and basically getting ready for these mega IPOs and just going into other kind of more exciting asset classes. Do you think that's a case? Well, I definitely think that capital chases momentum in returns, right? We've actually seen that happen in the Bitcoin and crypto industry over the years. But look, you have to remember that I think a lot of folks, take me as an example. I've invested in over 300 private companies.

Two-thirds of them are outside of the Bitcoin or crypto industry. It's just that I talk the most about Bitcoin publicly. And so I think that's true of a lot of people in this space. If you go look at many of the best investors that were early to Bitcoin, you know, the guys at Fortress were famous for being early to Bitcoin. Like they're not known for being Bitcoin investors. They're known for doing other things. And so ultimately, I think that Bitcoin has found its way into the portfolio of good capital

allocators. It's not just a cohort of people who, only own Bitcoin. The reason why that's important is because they're looking at, okay, I have a portfolio of assets. I'm excited about investing in, whether it's AI infrastructure, whether it's the new IPOs coming, et cetera. I have to raise cash from somewhere. And Bitcoin is a liquid asset that they don't see the momentum in at the moment. And so they're using that to raise cash. And I think that's pretty natural. Pompilano's in a suit and tie. Maybe Joe Rogan's going to go to 60 minutes. I mean, like, this is like the new mainstream has arrived. Anyway, Anthony,

it's really great to check back in with you. Thanks for making the time. Thanks. Anthony Pompliano. All right. In the meantime, let's get over to McKinsey Sigalos with a CNBC news update. So, Brian, Russian state media today reporting that Washington and Moscow will allegedly sign an agreement tomorrow to build a tunnel between Alaska and Siberia across the Bering Strait. State TV quoted Vladimir Putin's presidential envoy is saying the agreement will continue the design of the tunnel and that it would eventually be built. He's previously suggested calling it the Putin-Trump tunnel and using Elon Musk's boring company to build it. The White House has yet to comment. Karen Reed filing a lawsuit against the Massachusetts state police and the town of Canton,

Reid went through two high-profile trials and was ultimately acquitted of murdering her boyfriend, Boston police officer John O'Keefe. In the new lawsuit, Reed renewed her claims of alleged misconduct and negligence in the investigation that led to her prosecution. And President Trump is reportedly heading to Madison Square Garden for the NBA finals. According to the New York Post, the president's planning to watch the NICS, in game three on Monday in New York. The Knicks are up one to nothing after beating the Spurs in San Antonio last night.

Brian, not sure if you watched. Back to you. I watched it. I have to say people online were complaining about their resolution if they watched it with the streaming service. I'm not touting cable, okay? Because I know our parent company used to be Comcast.

It was great. It was now I'm old, so I'm like trying to look at the screen. And it was fantastic. Don't cut the cord. Well, by the way, first off, Donald Trump and about eight other people are the only people who can afford to go to the game on Monday night. Have you seen the ticket prices? They're like 10 grand to get in the building. That's a bad seat.

What a huge deal. Looking for Dolin for MSG for the dick. Can you imagine the traffic with the president coming? That's exactly right. That security and traffic situation is going to be wild. But still, exciting times. I'm going to be in D.C. Monday. I just realized that now I'm really happy about that.

All right. Technology and AI taking a breather. Investors looking beyond the market. market's most crowded trade. So where are they looking? Well, Dom Chu, who also probably at the next game on Monday, is going to join us on Market Navigator next. Welcome back to Power Lunch. I'm Dominic Chu with your market navigator today. Traders are continuing to try to figure out just how far this current bull market and AI stocks can go. Even with today's trade, it's been volatile. Dip buying is happening, so questions are there about momentum of these tech stocks. Where are some portfolio

managers looking for ways to rebalance their holdings and what factors they're looking at. Joining us now for that story is Jed Ellerbrook, Portfolio Manager over at Argent Capital Management. So Jedd, if people are feeling a little bit more squeamish about just where things could go with AI and tech, where else should they be looking? Hey, Don, thanks for having me. Yeah, I think there are a bunch of places to look. First one that comes to my mind is MasterCard. MasterCard is a great business.

We all know what they do. Very strong competitive position, consistently growing. consumer spending across the world grows every year. They're capturing their fair share of that. And I think they're managing the business well and allocating capital well. And the valuation's at a decade low. So I think MasterCard is a good place to start. All right.

MasterCard, where else though? Maybe outside of financials, are there other places within industrials, materials, other cyclical areas that you might want to find some of that relative value? Yeah. How about Waste Connections, a trash hauling business? Landfills are closing around the country. And so pricing power exists with those companies like Waste Connections. that are big and scaled and spread across the country.

And just commonality-wise, what do these companies share in common? Outstanding management, strong cash flows, good capital allocation, reasonable valuations. All right, Jed Ellerbrook, with the case there for stocks outside of AI and tech, Brian Kelly, I'll send things back over to you. Dominic Chu, maybe the nicest man in the world. I try. It's an inside joke. It's not a joke, though. He is nice.

Still ahead. A low-budget horror movie. Proving you don't need a monster budget to rocket at the box office, the CEO of the company behind Obsession and Backrooms. We'll join us next. All right. Overall, the highest grossing movies in America, at least some of them right now, they're not superhero sequels or family-friendly animated blockbusters.

Right now, they're two lower-budget horror movies, backrooms and obsession, both topping the box office despite being made for a fraction. of what movie studios usually spend on big movies. Joining us now, Jason Blummy, CEO Blumhouse Atomic Monster, the production company behind Backrooms and Obsession and more. Jason, really appreciate you joining us. This has been a sea change. I hate to use a term, you know, are things over forever, things like that,

but to what do you attribute the success? And congrats, by the way, of your movies, particularly against, you know, $200 million films. Well, thank you. Thanks for having me. I think over forever, I think they're just beginning. You know, we have been primarily making horror movies for 20 years, and we're always looking for opportunities and trends, and there has been a seismic shift in the horror market, and this weekend, there's this past weekend, is an example of it. And there are a new generation of horror filmmakers that are mostly coming from YouTube.

that have grown up with a direct connection to their audience, and they know how to make movies that are connecting with younger audiences in a way that we really haven't seen since before COVID. And what we did as a company is merge with Atomic Monster a couple of years ago. We did a first look deal with Divide and Conquer, who brought us onto obsession to keep a hand in and our eyes open and our ears alerted to new trends in this business. Horror has always been a very reliable genre at the box office,

but the type of horror that works is constantly changing. I mean, we got our start with paranormal activity and things have come a long way since then. You know, I think in a good way, it just means more original storytelling. Jason, I just would want to make sure that people don't start kind of trawling YouTube to try to, you know. I think it's fundamentally the originality that's a hit here,

no, or is there something more to it? You're 100% right. Unfortunately, it's too late. Everyone's trolling YouTube. We've had about 10,000 YouTube submissions in the last week or so. Wow. But look, look, what I think is very, very exciting about what we're seeing, and it almost feels like the 70s is these movies are strange. They are the opposite of cookie cutter, you know, Hollywood movies, and the audience loves them. So there's clearly a desire for young people to go back to movie theaters and experience something that feels different. And I think that's why these two movies and movies like this have been really resonating lately.

So that's a great analogy to the 70s. It gives hope. I mean, which other studios do you think could benefit? All of Hollywood will benefit from these because these are not quirky, small releases. These are movies that are grossing what studios hope to gross. So I think what we're going to see is studios getting behind traditional studios. getting behind these young, edgy filmmakers, which is great for everybody. It's obviously great for Hollywood, great for the community here, but also terrific for the audience

because we're going to provide more choice and more originality. And you might save AMC. I mean, the shares are still cheap, but they're up 25% year-to-date. Certainly might save the movie-going experience. Jason, thanks for making the time. Really great to have you on today, and congrats.

Thanks for having me. You might even say the young people have an obsession because they want to get out. All right, before we get it, it out. We're going to check the S&P 500. Why do we care? It's up a little bit because if we close the week higher, Kelly, it's 10 weeks in a row longest win streak since 1985. We're up just a 10th on the week and we got payroll in the morning. Drama. One hour to go today and all day tomorrow. We should make movies too. Closing bell starts right now.