tv Power Lunch CNBC September 28, 2021 2:00pm-3:00pm EDT
they want to cut down on the pollution as well as have these facilities next to the plants where the evs will be built. >> look at the chip situation. we have to insource the batteries. we have to learn how to manufacture them in this country. we can no longer import raw materials from around the world. these materials have to come from north america >> and there will be a recycling component at all of these ev battery plants one last thing, guys, you take a look at share of ford, this is a stock that is up by 40% in the last year. we see first production from these facilities in 2025 back to you. >> gigiford. thank you very much. that does it for the exchange, everybody. "power lunch" starts right now >> i wore my green tie, but all the numbers on the screen are not green. they are red
welcome to "power lunch. selloff on wall street here's what's ahead. bond yields are rallying that means prices going down tech stocks tanking. industrials, sinking a money manager shares his strategy for the best returns and where to find them at this crucial moment for the markets and crypto crumbles. prices falling a top analyst says will lead crypto into the future no matter where prices go. and a working lunch with amd's ceo, lisa su we'll find out how her focus has helped navigate one of the biggest challenges ever. the chip shortage. >> really looking forward to that thank you. here's where the market stands a sea of red doe use down 570 points. nasdaq down more than 400 points that's a 2.7% drop why? bond yields rising to three-month highs. the yield was below 1.3% last
week here we are at 1.525 and natural gas up 2% this morning reversing course midday. now it's up about 2.5% money is moving into energy and defensive names like slumberge, halliburton and kroger as yields go up, tech stocks are getting rocked microsoft and salesforce, go of the worst today. investors betting the fed will carry through on its promise to curb emergency bond buying treasury rates pushing the dollar higher. let's get to rick santelli for all of it out of the cme >> yes, kelly. interesting statement regarding how we handicap the taper, but i'm not sure the taper does much with regard to inflationary pressures. today, we had a seven-year note auction. the auction was above average, but they curbed their enthusiasm considering that prices have
dropped so substantially seven years were on sale but, they were very cautious. four and a half months, mid may, and if you look at all the yields, two years are at six-month highs. seven-years are four and a half month highs. tens at three and a half month highs. 30s at three and a half month highs. guild swing, 29-month high yields look at our ten-year break ooeeven in the u.s that's a year-to-date chart. looks like a 30-year bond chart. here's the rub let's pull back another nine years. when you look at a ten-year chart of break evens, it's easy to imagine that inflation is a lot stickier than companies seem to be expressing tyler, back to you >> thank you very much as we mentioned, the jump in bond yields so imminently described by rick, deepening the rout in tech stock, but our next
guest says to stick with stocks that depend less on inflation. pete pe peter anderson is chief investment officer with anderson why do tech stocks seem to be suffering today as yields rise and inflation fears mount? >> well, you know, tyler, a lot of people answer that question by saying i'm not a math major, then they go on. you are talking to somebody that was a math and physics major so i can tell you this. the current narrative is something about discounting forward earnings and cash flows and bringing them back to the present. and what emerge is this theory that is played out in college finance classes about when you have higher interest rates, that's going to lower the current value of your stock. so i get that.
but in terms of reality, tyler, all stocks have that problem not just tech growth stocks. even value stocks do so i'm scratching my head, frankly, since march when this narrative appeared out of nowhere and i don't really think it has a solid foundation. frankly. you have to look at all stocks not just tech stocks, but for some reason, that has caught very, very high level of support and that's where we find ourselves today, frankly >> peter, i think jonathan has a nice sort of write up of this today, but the idea is that technology basically all of its expenses are head count and that's the area where we're seeing some of the worst cost pressure their selling prices might go up, but their costs slcertainlyo up whereas in industrials, they might have 50% labor and 50% fixed cost so they benefit more from inflation that's why i think people say on the one hand, the math for the market multiple looks less
attractive, but on the other hand, the operating leverage is better for industrials than tech >> sure. i get what you're saying, kelly. i support that but i will also say this that even the manufacturing companies, you know, when you start looking at their costs of goods, finally i think the fed is giving us a little bit more indication we heard that today. that there is more inflation and i couldn't agree more. you know, if you do your own personal survey of private say family-owned businesses or just private companies, there are horrible stories about the cost of goods being up 100% not, you know, 30, 40% so i think it's a complicated story, right you have the cost of labor, which is subjected to inflation, but you also have the cost of goods, the input costs of materials and so i think all those things matter, but i tend to stay on the service side because i think that's a little
bit more predictable than say trying to predict the cost of semiconductor chips which have gone up tremendously over the past year. >> let's get your thoughts on stocks you think can withstand or benefit from higher inflation. i'll give you the three names you gave us. not that i need to give you the name, but cesars is one, united rentals and trade desk is the third. what do they have in common and what do they have that makes them good for these times? >> yes, great question the one thing they have in common, tyler, is that they're mainly service businesses. i know that sounds crazy because united rental actually rents out capital equipment. but they don't have to buy any new equipment. it's all equipment that they own and when they want to enlarge their business, what do they do? they don't go out and buy new equipment or order it, they buy competitors. so all the inventory so to speak
is there and with the trade desk, contrary to what kelly was saying, in terms you have to factor that in about higher costs for employment and staffing, trade desk is a service business i mean, it's a broker that you could run in a small office with a couple of computers. that's an understatement, but i think you get what i mean. and finally, cesars, that's a very interesting play i have there. i would say it's perfectly hedged it has online gaming, so if we go into lockdown, you're still going to have a lot of online g gaming, but it has physical casinos. if we open, then you also are going to have that side covered. go ahead >> i was just going to say by way of conclusion, that i totally get how cesars is a service company from separating me and my money. we've got to leave it there. >> the crypto space is getting
hit hard, too. ethereum and bitdowncoin down. coinbase and robinhood down. our next guest says it's time to bet on coinbase. even if bitcoin drop, coinbase will remain a leader in the industry for years to come devin, welcome we'll go back to him in a moment sorry. again, coinbase and robinhood down 1 to 2% >> you can see how a company like coinbase would make money no matter which way the trading goes you get the vig. >> the vig >> all right we're going to take a break, maybe we can patch him back in if not, we'll just move on
trust us it's going to be fun we've got richard branson's virgin industry. now upended by the comeback. but does this ship have what it takes to steal market share from the big three? and the cruise stocks are lower today. we'll take a look at it in a minute, but higher over the past month. and later, our trading nation team takes on the energy sector with names they say are the best plays as prices take off we've got more "power lunch" ahead.
if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.
in business, it's never just another day. for it's the big sale, orions, the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next.
comcast business powering possibilities. welcome back we want to call your attention to the lows of the session that's what we are seeing right now. the dow industrial's off roughly 600 points one and three quarters percent to the downside. two plus percent for the s&p 500 and the nasdaq off about two and three quarters of a percent, down 417 points. if you look at the price action so far on an intraday basis, what you are seeing for the dow industrials is that move here lower just in the last five minutes towards those session lows, we attempted a little bounceback right over here, but again, giving way as we head back towards the 3:00 hour where a lot of volatility can come into play. we are kcontinuing to monitor
this selloff, particularly in technology stocks. the semiconductor etf, smh, near its lows of the session. among the biggest laggards, asmo, also advanced micro devices and applied materials. a stock downgraded earlier this morning. also, micron lower that stock by the way has been one of the group's worst performers this year, trading in negative territory on a year-to-date basis those semiconductors, some look at it as a possible leading indicator for the rest of tech >> dom, thank you very much. devin ryan is back, we're going to talk to him quickly about what's been going on in the crypto space and coinbase. devin, you know, it's good to have you here. you know, coinbase, crypto, this should be something that people can go to as hedge in market selloffs like this but tell me why you think this
is a name that maybe people should consider picking up on the dips here. >> not many companies that i can say have 70 million verified users for generating $7 billion in revenues and have a $60 billion market cap and are probably in their first or second inning. so you know, i think we're early days of kind of the crypto economy developing coinbase is clearly a leader in the development. i think it's going to play a huge role in the ongoing development here and so 85% of revenues today are from transactions and trading over time as they build out some of these other subscription services that probably goes down to half. so you get a re-rating in the valuational pull as the revenue mix improve, but i see huge growth here. >> they just announced direct deposit.
if they come out again, it could be a big downside. is this a place you think people should wait for the shakeout if they want to accumulate it >> i wouldn't say if you're looking at technology stocks and particularly disruptive technology stocks, it's always difficult to time exactly when they're going to move. clearly, there's a lot of considerations here on both sides and i think you hit the nail on the head regulatory risk is one of the biggest uncertainties for coinbase on the other side as i talked about, they are in their very early days of innovation and growth and so you're paying valuation multiple that in our opinion is already contemplating that you're paying seven times revenues on 2022 estimates many leading brands trade in the mid teens or higher. if you believe that the crypto economy is going to continue to develop, that the regulatory landscape will get figured out, and regulators looking at it and looking to add protections is a
really good thing and coinbase is a leading firm to work with it's not going to be on a linear path, but it's to validate the future of the crypto space in my opinion, that regulators, you want to make sure they understand they can get it right. so coinbase going to be a leader there. we did an analogy to coinbase and amazon they built out aws really interesting analogy here because there's just tremendous opportunity as they open up the platforms to other outside parties that some people think are competitors in reality i think are going to be partners and clients and that's a huge growth story for coinbase. i think a lot of people are missing right now. >> that's interesting you draw the analogy to amazon. at the time amazon began, it did one thing. it basically sold books then realized it could do a lot more
than that. but at that time, there are few retail competitors to amazon and this area does feel, maybe you're right maybe they take their competitors and make them partners, but right now, it feels like a fairly competitive universe and you've got to figure that some of the big players, whether it's goldman or morgan stanley or whomever, are going to get into this business with both feet as well >> yeah, it's a good point, tyler. what i would say is that don't underestimate the engineering expertise that coinbase has assembled and also the mistakes they've made over the last decade there's a lot of really well resourced firms that want to capitalize on the growth that's happening in the space, but they can't just enter with hundreds of expert engineers in crypto. that's where if you think about amazon aws and coinbase cloud, coinbase is essentially opening up their platform because their
confident that they've solved a lot of hard issues they have the resources and that people are going to want to utilize what they've built and so firms that again, i think people looking at is really potential competitors are in many ways going to become clients, partners. there may be different aspects, but coinbase has this first mover advantage. >> and as you say this, i'm thinking of how conventional publishing and media firms struggled, struggled, and most cases unsuccessfully tried to break into the world of the internet and internet publishing so you're, the incumbents don't necessarily have the advantage we appreciate your time today. meantime, shares of the cruise lines are trending lower today along with the broader market. the industry attempting a comeback from the pandemic it's a hard time to launch a new ship, but that's not stopping virgin voyages we're live in miami for a "power
lunch" exclusive with virgin voyages ceo. >> thank you so much tom, great to be here on virgin voyages, your first ship i spoke to the ceos of royal caribbean and carnival this morning. they told me they're not worried about the competitive threat from virgin voyages. what's your response >> we think about this as really trying to expand the entire travel business. you know, we wouldn't be in this industry if it wasn't a great industry, great guest satisfaction, incredible value for money, but we think about virgin voyages as expanding the entire travel market by offering an adult experience on the high seas delivered in a way that only virgin voyages can do >> delta variant has hit bookings for some of the publicly listed cruise lines what do bookings look like for your first sailings coming up in october? >> the good thing about launching now is there is pent
up demand. we need to get out there and showcase our ship so people know who we are but they haven't experienced virgin voyages we just had a successful season in the uk. great rave reviews people are loving the dining, the entertainment, this adult-only experience. so we've got to let that settle in and those bookings will come. so we're happy with where we are today, but we've got a lot of opportunity in the future. >> over a billion dollars spent to launch this the private equity firm is your largest shareholder. are there plans to take it forward? last time, you said there were is spac in the cards or do you want to get acquired by one of the larger cruise lines? >> for now, we're focused on launching this brand we've got the scarlet lady next week followed by two more ships next year. that liquidity then, whatever it will be, whether taking the company public or an
acquisition. right now, we've got to showcase the world what it's like to set sail the virgin way. we know we have something very special here for the adult market >> on wall street, the big question is how do you get that younger traveler on board? they've been more reluctant to cruise what's your strategy >> i think we've got a unique experience for them. it's focused on the adults it's great dining. people love these dining experiences. it's great entertainment and we've got to make them feel comfortable that they can be safe and secure here so we've spent the past 18 months developing protocols, procedures we've invested in atlas air. air purification kills 99.99% of bacteria and viruses in the air and we're doubling down on vaccines we're requiring 100% of our sailors and crew to be vaccinated and we're making all of our folks be tested before they get on the ship if you think about the
combination of all the factors, this is the safest way to travel safer than going to a hotel, a restaurant, than going grocery shopping everyone around you has been vaccinated >> best of luck on your maiden voyage on october 6th. look forward to seeing what virgin voyages brings to the market back over to you >> thanks very much. we've got a news alert now out of a very busy washington and elon has the story >> senate majority leader chuck schumer is rejecting the idea of using the fast track reconciliation process to raise the debt limit with only democratic votes he told reporters that it's risky and a non-starter because the process is complicated and potentially could be drawn out now this helps to clear up some confusion that occurred among democrats today because of some comments made by steny hoyer
steny hoyer also saying that raising the debt limit through reconciliation is not the best option nor the option that the gop is pursuing. now instead in just a few minutes, chuck schumer is expected to put a bill on a floor that would require unanimous consent to raise the debt ceiling with a simple majority of votes. the gop is expected to block it. so once that fails, it is unclear what additional tools democrats can potentially use to make sure the debt ceiling gets raised before the october 18th deadline separately, schumer told reporters they expect to put something on the floor to fund the government very soon back to you. >> what does the gop seek in return for votes that would enable the debt ceiling limit to be raised? what is their, what is their bargain? >> yeah, so that's part of the stalemate here is that the gop hasn't asked for anything because they say that democrats do have the power to do this on their own using that
reconciliation process they say they've been telling democrats to do this since july. democrats simply have refused to listen so there's not really a force that's able to occur here because there aren't policy concessions that either side can make this is simply something that there's a disagreement on. democrats, they say, can do it on their own democrats say they're unwilling to do so because that process is too risky and now, we are about three weeks away from potential default and there's no path forward. >> why do they say it's risky? what's the risk of using reconciliation to raise the debt limit? >> so the process they use to do this is incredibly tricky. they would have to go back to both the house and the senate budget committees in order to do it it would require potentially three separate votes on the senate floor and each of those votes could drag out for days if not weeks at most. depending on how much cooperation republicans decide to give them so how long that process takes,
how exactly it could be done would need to be negotiated with the senate parliamentarian as well it factors into a process that would be easy to trip up and potentially send the country into an accidental default because they didn't follow the r rules correctly. it would mean politically they're doing the same thing republicans told them to do. that's not a good look for democrats. >> very interesting. i have to imagine even with all the pitfalls mentioned, if this was the most important thing -- >> you'd go ahead with it, but if there's three needles to thread and you've got no majority, a tie in senate, you've got to win every vote on every vote >> and no wiggle room on the timing of it >> but it's also interesting there's no horse trading here. the gop isn't saying, okay, we'll go along with this if you shave x trillion out of the -- >> what do they demand
nothing. >> out of the the infrastructure bill or the human infrastructure >> absolutely. absolutely feel like that fighting is starting to take place within the democratic party coming up, more on the market selloff facebook, google, amazon, alphabet, microsoft, all down in the range of 3%. want to show you the dow off the session lows some of these machinations on capitol hill seem to be at play here is there a path forward? is there not market down now less than 500. back in a moment
we see access to fresh food being the global norm, not the exception. at emerson, our cold chain software and technology keep perishable food at proper temperatures, to assure its safety and quality. emerson. consider it solved. - [narrator] at southern new hampshire university, we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2022. - i knew snhu was the place for me when i saw how affordable it was,
welcome back here is your cnbc news update. the white house says today that 400,000 people received a covid booster shot over the weekend and almost a million more have an appointment to get one. the decision on whether boosters can be mixed and matched is expected in october. and tomorrow, the u.s. will hit a milestone. 200 million adults with at least one sthot, but another 70 millio remain unvaccinated. as she pushes for passage, nancy pelosi said it would be a
der election of duty and in boston, a pest control company had a delicate job. removing thousands of bees that had created a massive hive about 50 feet above the ground workers carefully vacuumed the bees into containers so they could be relocated good thing they were wearing those. >> that was one big hive look at that isn't that amazing yeah vacuuming. that's one way to use your dyson, i guess thank you. let's take a check on the market right now, if you dare. you see the industrial, they've come back just a bit they were down more than 600 points just a few moments ago. right now, down about 500 or 1.4% this is one of the weaker showings we've had in several, several months the s&p, ditto there down nearly 2% and the nasdaq is down well over 2% 2.5. ten-year, as rick said, i believe he said it was the
highest yield level since may. right now it sits there at 1.53%. yields a big part of the story yields moving up across the curb >> stocks are selling off today. only one sector is high r and if you've been following things lately, you know it's energy oil is lower nat gas is higher once again we're going to get the closing trades in just a moment. meanwhile, the markets are turning against tech with rising yield. what do you buy noinw the space? what don't you we'll get answers coming up on "power lunch."
every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. working at recology is more than a job for jesus. it's a family tradition. jesus took over his dad's roue when he retired after 47 year. now he's showing a new generation what recology is all about. as an employee-owned company, recology provides good-paying local jobs
for san franciscans. we're proud to have built the city's recycling system from the ground up, helping to make san francisco the greenest big city in america. let's keep making a differene together. welcome back the energy market is closing for the day and we've had some wild swings in natural gas. pippa, what's happening? >> a wild day for the energy market, indeed let's start here with nat gas, which is currently up 3% at $5.87. the 24-hour chart shows that volatility we saw prices jump 10% earlier today hitting a high of $6.32 before erasing that entire move and falling into the red that two was then reversed with nat gas ending the day in the green and now up more than 30% for september.
moving over to oil, brent broke above 80 bucks this morning for the first time since october of 2018, but it also couldn't hold on to those gains. the contract is down about .9% brent crude dipping to $75.02 after hitting a high of $76.67 now the price difference between nat gas and oil is something to watch. energy saying if nat gas remains elevated, it could boost oil demand from asia by 400,000 barrels per day over the next two quarters >> thank you very much a rough day for equities they're now off their low, however, so maybe a little less rough, but about 90 minutes to the close. back to bob pisani at the new york stock exchange to tell what you say he sees. >> very tricky moment for the markets. we have washington dysfunction, but this is mostly about the rise in interest rates, which is putting a lot of pressure on
tech stocks. just take a look again today they're to the downside. i would note apple's down 8 or 9% from its high microsoft's down 5% or so. 6% so it's not really a true panic situation, but we're off the highs. you heard about these energy stocks they had a terrific rally since oil's moving towards that $75 level. that's the highest in seven years. these are great rallies, but energy's 3% of the s&p there's only so much money you can throw at these things and they get so overbought they stop going up essential wly big banks have had a nice rally. up significantly, but here, too, significantly overbought and essentially they've stopped going up today as well industrials and materials have had a tough time because china slowed down on the delta variant. that's been a big issue. we normally should see these
stocks doing well on the global recovery, but that's not happening. i also want to point out consumer staples here. they've had a tough time this month as well because they've had supply chain issues. they're also dealing with higher prices, so big names like coke and kimberly clark are having a bit more tough time. so i think the problem here is very simple. number one, we have washington t dysfunction, but two, we have the rise in interest rates and we have a different situation than we had earlier in the year when interest rates went up, but we also had an early cycle recovery going on and the fed was far away from raising rates. now we're in a mid cycle recovery and the fed is closers to raising rates my point, this is not the same situation as earlier in the year different part, different time of the, different situation for the economy. tyler. >> thank you so much so with major names in technology taking a dip, which stocks should you look to buy in
all this tech trouble? joining us now, steve grasso welcome. rising interest rates in a nutshell cause trouble for tech because tech stocks maybe more than others are so dependent on the discounted value of future earnings it's all about the future earnings and if rate rs s are g up, the value goes down, hence the stock price goes down. but are there exceptions in tech or other ways to play in this rising interest rate environment that can make me some money? >> yes, and you laid that out perfectly. i've been listening to you today and i think you're doing an excellent job at trying to break that down because not everybody realizes that so investing 101 to your point, tyler, is that you don't buy tech in a rising rate environment but the caveat is you can buy value tech and what i mean by that, some of the names are the names we always talk about. the name that i always lean to
is apple and obviously apple has had a bunch of negative headlines involving the app store and their commission with the app store. i think that will go by the wayside. 30% is probably in the rear-view mirror so the price of that stock has to be recalibrated i would say the other name is google look at how google got beat up last year. dan niles talked about it on the show on kelly's show earlier so google was really torqued for outsized performance and i think you'll see that continue this year even in a negative backdrop for tech and the reason is is that tech value will continue to climb that ladder because tech value is what people are putting their money in and what holders will hold on to nobody knows the chemical names
that are small cap, tyler, but everyone knows faang, right? >> yeah, absolutely. and these are sort of the blue chip tech stocks that will endure and probably be less buffeted, warren, by the currents in the market that's really the theory here, right? >> right so i have a visual for you so if you pull up the ten-year yield and if the staff could do that back in engelwood, pull up a ten-year yield and you see where it dropped off in march to just a couple of months ago, a couple of weeks ago lows in the ten-year yield f now if you look at the chart of google, it is inversely correlated to that yield so as yields came in, google climbed that ladder and the stairs it's a very good visual. apple did the same thing >> there you see it. >> nvidia did the same thing
so all of these names are a great visual so the way you walked the retail investor and the professional investor through why you don't buy tech in a isrising rate environment, here is the visual. you don't have to know anything about discounted cash flow, future earnings. look at these charts and by the same token, pull up a name in exxon mobil or a small cap chemical name like trensaio that i and you have talked about for months now tse. it's the same inverse correlation, so you would expect that as rates rise, all of those value names in the chemical space and in tech should also rise with it and the zooms should continue to fall >> anything that helps me not to know about discounted cash values and future earnings is welcome, mr. grasso. thank you. appreciate it. i can see a picture, makes it
work for me. >> worth a thousand words. energy stocks higher today and also the only group higher in the past week and month. did you miss the move or can you still cash in? that's trading nation, next. before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these.
lemme guess, change in plans? at fidelity, a change in plans is always part of the plan. that building you're trying to buy, lemmyou should ten-x it.lans? ten-x is the world's largest online commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it.
welcome back to "power lunch," everybody. we're watching energy after some volatile moves in the space lately brent hitting a three-year high before reversing today nat gas was up it's now pare ed gains of 3% this afternoon let's discuss with your trading nation team how you should play these stocks gina santos and john petrini along for the ride as well
gina, i'll start with you here i like your take on this you say if you're not in energy already, you've missed the move. the reason i say that is because it's maybe hopeful for energy consumers these prices can't last what do you think about the stock as the best performer of the year >> so, look, energy had a long way to catch up. they were big, negative earners during the pandemic. naturally that was going to be a boone for all energy companies right now, however, we're experiencing the spike the spike is predicated on disruptions in supply meeting this big demand and those tend to happen in very sudden moments and will work themselves through. energy prices go up quickly and come down slowly exactly the opposite of stock market so if you didn't experience this spike, then you're in it for the long haul, for 2023, 2024, when energy prices should get back up over where they are. >> and john, you think this is also a tough space the mlp space as you note has been tough
four letter word, maybe a three letter word for us since 2015 i know the biden administration might think about allowing some renewable mlps, but maybe that's beside the point >> i take the opposite side of gina in a sense i don't think we've missed the rally in energy the commodities gone up 100%, but the stocks haven't followed as much. seven, eight years ago, the pipelines were the darlings of the energy market and now those companies where their balance sheets are strong, they're returning that cash flow not only through dividends, but they're buying back stock and their balance sheets are really healthy. so with higher commodity prices, you don't have as much sensitivity in terms of nat gas and oil. kinder morgan, my team managers in particular is predominantly natural gas. so we think maybe a beneficiary in this market and again, you're getting a 6% plus yield in an environment where finding income is really hard to do >> again, this is a very tricky moment for the energy space
what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change.
for the chip industry? in this edition of "working lunch" jon brings us up close to find out. >> hay i, tyler. rough day for the chips but don't let lisa sue's mild mannered demeanor fool you she came up in new york in the '70s and '80s. >> i grew up in queens went to bronx science in the city so yeah new york is still home for me. >> around the way girl that's cool. what got you interested in technology and science >> when i was a kid my parents were typical asian parent and they wanted us to do hard stuff so it was math and science and that was the focus and then went to bronx science did my science projects so that helped really drive me into engineering. >> get this. when she was at bronx science,
1984, min gin lee and john faf row, they were there at the same time crazy. anyway, i have known lisa a long time that interview was from 2016 when amd stock was at a whopping $7 a share yesterday i joined cara on stage at the code conference here in california to interview lisa and we asked her what's next for chips. two things she said. heterogenius computing and m&a. >> consolidation is inevitable particularly if you want to make an impact. startups do cool things but i have tremendous respect for the folks that start a company but if you want to do something very large for the industry scale is important. >> important for investors to cue in on especially in a rough market day like today.
what's heterogenius competing? talked about chips to turn on the functions you need and only when you need them a lot of chips use a bit of the concept today by the m-1 that came out in the last year take it to another level and why the mack book is air and 14 hours of battery life and so lisa su wants to bring that power to the mainstream and think about that today when you see the semiconductors hit hard. >> she is pretty candid about deal making. where should we be looking strategically, what would be the candidates that she would be contemplating? >> broadly part of what's happening right now is the hyper scalers in the cloud so think about amazon, microsoft, google
cloud. a few others oracle a bit they drive a bit to cust tomization they want influence in how that's built intel has a company focused on cloud purpose built chips. talking to her last week they do customization. acquisitions in that space investors should think about those types of companies with both software and semiconductor technology and design to be flexible for customer needs. >> talked to renee james last week talking about the industries issues. up close i wish you could see how big your head was on set right now. >> maybe not. >> i've been trying to get careful about getting a big head i have to come back to get back down to regular size. anyoove the series
we see increased efficiency connected to more comfortable homes. emerson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. you have the best pizza in town and the worst wait times. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire welcome back dow is way off the lows. still down 412 but i think minus 606 was the weakest tonight of the session and saw that hit drama in hour. the lows after sounding like mcconnell is not interested -- schumer not interested in reconciliation to raise the debt ceiling but indicating that there is still a path forward
and i think that's how we ended up here. >> exactly as people watch washington, mcconnell said it is mr. schumer's responsibility and he holds the keys in the form of 50 votes to get that done. >> vix elevated on the session but off the highs as d.c. drives the action today. >> i will be at delivering alpha tomorrow see you thursday. >> "closing bell" starts now. welcome to "closing bell." i'm wilfred frost at new york stock exchange stocks tumbling as the treasury yields march higher. nasdaq hit the hardest down more than 2%. >> welcome, everyone i'm sara eisen. let's look at what's driving the action 10-year treasury yield hitting levels we haven't seen since june weighing on the growth names. the tech names, faang stocks, microsoft, apple lower fed chair powell and