Skip to main content

tv   Power Lunch  CNBC  May 9, 2022 2:00pm-3:00pm EDT

2:00 pm
and likely under water how long can they hold on and are they willing to wait that decade time horizon that people say is the payoff for bitcoin. >> i'm glad the whales and the shrimps, we're all in this together in this big ocean of crypto kate, thank you very much. kate rooney. all right, from crypt onto stocks when will the selling pressure stop? we are looking for signs of of a bottom and we're, snorkeling on "power lunch." that does it for "the exchange." i'll see you in a moment tyler, take it away. and welcome, everybody, to "power lunch." i'm tyler matheson the selling on wall street not letting up at all not in any way, shape or form the s&p 100 trading below 41,000 and nasdaq below 12,000 this hour a look at stable stocks and stocks that can help ride out the volatility and the technicals on tech names and one of our guests makes the argument
2:01 pm
that inflation is about to decelerate we are two hours to the close, kelly. we've got a big first hour ahead. >> we certainly do, tyler, thanks >> tech is once again getting hit the hardest. the nasdaq was down 3.9% and a 454-point decline and incredible selling pressure on the nasdaq the s&p down 2.5% and 17 points above 4,000 right now. its last close below 4,000 by the way was march 2021 and dow is down 445. energy stocks are some of the worst performers and that's been a change from the recent past, obviously. marathon leading the declines down 12% and apa, occi, devon down 12% and the volatility is extending to stocks and the ten-year this morning hit 3.2% and we are now back to 3.08 and as investors look for ways to protect their
2:02 pm
portfolios mike santoli is at the nyse with a look at the market's downside risk mike >> kelly, of course, nothing that can be pinpointed with any precision, but a lot of different approaches to look at what plausible downside risk might be and the s&p 500 sliding and this new low today really does lose any look of a trading range that we had in place for a while assuming we close in this area below 4100 and a lot of the estimates coming from ult in imdifferent directions seem to be focusing on this area around 3800 to 3900 it takes you back to the early part of 2021 really, you first got above 3800 in the first part of january 2021 remember what was going on there. that was the crescendo of excitement around the beginnings of it and the ark-type bonds and you had the rush of enthusiasm those things started to correct shortly after that and the
2:03 pm
big-cap indexes are there, too some of the trend lines coming from the march 2020 low intercepted and valuationwise, the s&p is down 16 times forward earnings and rebuilding relative to treasury yields and a lot of this stuff seems to coalesce in that area. it doesn't mean we get there and it doesn't mean we stop there and it can absolutely have a pretty good bounce even before those numbers come into play, but it seems a good way to stress test your mind for what could be to come >> in that case, mike, we often talk about some of these levels are technical and some of these are psychological and things breaking below 4,000 on the s&p, that gets everybody's attention. >> it should, to the extent people anchor on the s&p as we believe it ought to. essentially undoing more than a year's worth of gains to think about it because you go down in price and go back in time and before the pandemic, we peaked
2:04 pm
above 3500 and wooee've seen ma stocks and sectors and i don't think there's any reason to say that the overall market has to do that, but you have to recognize that a lot of components of the market are already revising the pre-pandemic levels. >> michael, thank you. mike santoli as the market volatility continues, our next guest says investors are treating all companies the same and there are names with strong fundamentals that aren't being reflected in the share price. let's bring in jim tierney abcio. welcome. we have a baby and bathwater kind of approach here. you seem to be saying, where are the babies and what's in the bathwater? >> absolutely. when we look at the earnings season we've just gone through there were some really good reports and some great beats and some great raises and in aggregate, earnings estimates went up, not down. and so that tells you that some
2:05 pm
of the things -- that's not widely being credited in the market right now and you also say there are some signs of an abating inflation and other signs that suggest -- well, i guess we've just lost jim tierney and his case, kelly, as we try to get him back is that there is some air coming out of the wage bubble and it's retreating and there are some signs and some sectors like freight, like lumber and other areas where the inflation rate is dissipating just a bit. >> we have the stock pickers like him on the one hand and any time we have a day like today where things start crashing through these levels and we start talking about whether the s&p will break 4,000 and how much the nasdaq is down it will trigger a whole new wave of people saying our next stop is such and such and just like kate rooney just said in bitcoin, now
2:06 pm
people talk about 29th and they keep ratcheting down and down. >> james tierney has rejoined us, i'm sure, whatever there are some sounds of wage growth abating and some signs of inflation abating in specific categories and that these are good signs overlooked. from under 3% to over five that has to have implications on the asset playoffs and the cost of housing and labor and on the commodities and that's a great thing. you look at amazon amazon came out and said we overbuilt. we also overhired. as they pulled back and they were the biggest incremental employer in the market as they pulled back and absorbed that capacity, that means less pressure on the housing market i don't think we'll stay at 8.5% inflation for a long period of time as that starts to come down, people get more comfortable than the equity market and the prices available
2:07 pm
right now. >> let's get to the three stocks that you say are sort of underloved given where they are. the first one was mentioned by another one of the market pickers last week and this is zoetis, the animal health company. so great company they're all about companion animals, dogs and cats you will have your pets for years and years. you are going to give them their medicine and it's a stable business and that's a stock that's off more than 30% year to date and the business is completely intact. another one is mastercard, in some quarters, unloufeved as otr are unloved and the paypals and so forth. >> there is a massive shift from people buying too much stuff when they were stuck at home and now they want experiences and part of that experience is travel and when you travel you generally use credit and if
2:08 pm
you're crossing borders, that's a very profitable transaction for mastercard i think this is a re-opening play and the stock is okay on a year to date basis and earnings estimates are going up, not down >> it's not a good day for the market and today that stock is down 5%. the final one is amfenol i'm not familiar with the company and you'd have to explain what they are and why you like it. >> more intelligence is going into every product we buy and as supply chains become unplugged and you produce more cars, planes and phone, anfenol's business will do well here and a company that's down more than 20% year to date >> thank you very much appreciate indulging our glitch there and we're glad to have you
2:09 pm
with us. see you soon let's get over to frank holland on midday turnarounds. >> a couple of e-commerce stocks and that includes etsy up half a percent and ebay up almost 2%. ebay announcing it will become the secondary market of the funco toy brand and both of those off the lows of the session and as we mentioned now in positive territory and up over a half a percent. however, those stocks have not avoided the sell-off entirely and etsy is looking more broadly at the etfs that track online shopping they're still nfirmly in negatie territory and the amplify etf also down nearly 6% and off more than 25% in the past four weeks as the market volatility continues. tyler, back over to you. coming up shares of tesla down 20% over the past month. so is the stock on the verge of breaking down, and further
2:10 pm
breaking out we'll tell you what the charts say, plus inflation deceleration copper prices down 1.5% and that's just one of the reasons why our guest later this hour says inflation can fall from current levels potentially quite quickly. shares plummet to a new low as ford unloads 8 million of those shares details on what's ahead for the start-up which is dragging down other ev names like club power, nicola and lucent. we'll be right back. usiness. power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge. 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade from morgan stanley and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools
2:11 pm
to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade from morgan stanley and start trading today. as a business owner, your bottom line [ding] get e*trade from morgan stanley is always top of mind.
2:12 pm
so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™
2:13 pm
welcome back to "power lunch," everybody. the tech stocks are -- i was going to say the eye of the storm. that's the wrong analogy tech stocks are the worst-hit part of this market with the nasdaq down 3.8% we've got microsoft trading at 265. amazon is down 5%. tesla was under a moment ago our next guest has a pair of tech names that he says are poised for a breakout and also a name that could break down carter worth is market strategist at worth charting before we get into that, just reaction please to the trading today. it's pretty ugly out there >> it sure is, and i think it's a testament to the things that lead and drive the market higher what we unwind are the things that take it apart we're seeing that. tech is the winner on the way up and it's so inflated and loved overall, if you will it's now the thing that's taking it down. the point decline in the nasdaq is higher than the point decline in the dow which is remarkable because the dow is almost triple
2:14 pm
the size in point terms. let's get through some of your charts as we've talked about how bad tech is, you think that broadcom could be poised for a breakout here >> let's see, not so much a breakout and favoring because of how well it acts because if you were to stand back and think about the various approaches to investing and one of the most robust factors and some of the biggest fundamentals is relative strength in momentum and so what we know is the tech sector has broken down, but if you look at movado, for instance, broadcom, it is still down and it is still holding trend versus the tech sector, the nasdaq and other areas that have clearly broken trend, and that kind of dated reaction is impressive it seems it's garnering less selling than other names hpq is another one that you say is not just holding in there, it's up 15% over the past six
2:15 pm
months that's right in both of these stocks are up versus, of course, the nasdaq down 20 and 30 with the nasdaq 100 or you want to look at the tech sector and the point is they're holding trend and exhibiting characteristics and let me just say the only way the stock to go down, no one sells on any given day, it cannot go down, meaning this is not attracting the fear, the selling pressure and the margin calls that other stocks are attracting and so that's a very positive data point here and now. >> we're happy to hear them because the flip side of the picture, i mentioned it a moment ago, tesla trading below $800 a share and you think there could be more down side? >> that's right. one, we know that tesla is breaking trend which is the case with so many others, and it's just starting whereas the sector itself and many names have broken weeks and weeks ago at one, tesla is down just as much as the market and more and yet it's only just now breaking. the point being is it was such a
2:16 pm
highflier and then there was this, it's a darling widely owned, widely believed in and highly priced, if you will, if you want to get into the valuation metrics and not many people have abandoned it yet >> is there a fundamental problem with tesla's business or is it just that it was so high up there in the 1200 zone that now, it sort of inevitably must decline? >> sure. they're operating their business well, by all coulds accounts an not so much that and this attracted non-believers and everyone's finally in. in fact, the speed targets have now doubled in many cases so when the stock was way up and now they're bleeding and the stock's starting to go the other way and we all get wrong footed once in a while. >> to what extent do you see
2:17 pm
that downside risk >> a lot >> i mean, that's the risk does it have the loss of an etsy or a zoom or peloton or netflix? no it looks like it's more than where it's at. >> i pointed out friday on fast money that we can melt down whatever it is behind you and get good money >> i've got it stored rate there. >> it's all a commodity play behind carter. carter worth let's move on now, shall we? >> shares of rivian. they are down nearly 20% today ford has unloaded 8 million of its shares and we'll tell you the real reason and coinbase getting crushed in the crypto carnage. does that represent an opportunity. should you bet on a bitcoin bounceback we'll get a trader's take on that and during may we celebrate
2:18 pm
asian-american and pacific islander heritage and feature our teammates and contributor and here is gunjab >> one thing my mom and dad emphasized growing up was education and that was one of the big reasons that they moved to america was to give me and my sister access to the best education possible, and i watched them while i was growing up move to a totally new country and not knowing the language, not knowing anyone and kind of having to build up their lives from scratch, and ve crii'ared those lessons with me throughout my life.
2:19 pm
(driver) conventional thinking would say verizon has the largest and fastest 5g network. but, they don't. they only cover select cities with 5g. and with coverage of over 96% of interstate highway miles,
2:20 pm
they've got us covered.
2:21 pm
all right, folks welcome back to "power lunch." one of the new lower stocks is rivian dragging down other ev names and phil lebeau has details. >> the pressure from rivian comes from the fact that ford along with other investors and ford wasted no time with 8 million shares by the way, david faber also reporting that there is an
2:22 pm
unnamed seller or sellers unloading between 13 and 15 million shares of rivian, as well unclear if all of those sales have gone through. not a surprise when it comes to ford that company is are, as sources have told us, they've told david and other people for many months now that likely when the lockup period expired they were going to sell some or all of their stake in rivian. now i want to take you in the way back machine and go back to a couple of days after rivian's ipo bank in november remember when it was flying high and hit as high as $175 a share? well, that's also when you saw a number of the ev start-ups also hit a high and look at what's happened since then. rivian is the most dramatic example, fiskar, lucent and you name any of the stocks and they are down and why because they're increasingly running into higher production cost that was the story today when lords town motor, and the company is dealing with higher
2:23 pm
production costs it's burning through it quickly. in fact, they are trying to finalize a sale of the lordstown plant in northeast ohio in foxconn and they have a four-day extension and if they don't come up with that they have to pay foxconn their 2 million. even if they get the deal they'll need to move toward production of their electric pick up starting in the third quarter with deliveries in the fourth quarter and take a look at 52-week lows, and fiskar, canu, you name it and it's a bloodbath when it comes to the ev start-ups right now and it's going to be a while until you see cash flow positive, let alone production beginning on a meaningful basis for any of these companies. do they have the capital needed to go from here to when they actually start up production meaningful production, let alone get the cash flow positive they'll need more capital. most people are betting and that's the question now for
2:24 pm
investors. you give more capital to these companies and many of which went public through spacs >> i thought they took a hit on it last quarter. >> they do have a big steak. rivian is probably in the best shape of the ev start-ups in terms of capital it has enough capital as it ramps up production and that was what they were building for amazon we were at the plant a couple of weeks ago and they'll start going into use with amazon and central illinois, but a new plant down in georgia. that is not the case with a number of these other ev start-ups and they're working with contract manufacturers or they're working on limited production of their own. you guys, we've talked about this from the beginning and the auto business, heavy, heavy, capital-intensity business and this is the period here, before you start see these vehicles roll out in large numbers where
2:25 pm
you have to have a gut check, that's the question for investors. >> phil, thank you very much let's go to seema modi for a cnbc news update >> hi, tyler for the first time in 59 years queen elizabeth will not attend the annual state opening of parliament in the last hour buckingham palace says the 96-year-old monarch continues to experience episodic mobility problems her son, prince charles will fill in tomorrow reading the speech prepared by boris johnson's conservative party government for new legislation also this hour, president biden was in the rose garden he was talking about his plan to use bipartisan infrastructure to lower the cost of broadband for low-income americans not connected to the internet. at&t, and cnbc comcast are among the companies participating in the program. in manola, supporters of
2:26 pm
f ferdinand marcos jr., he is the son of the dictator who was ousted in the 1986 people power uprising he is running against a candidate who emphasizes human rights >> seema, thank you very much. seema modi. >> still ahead on "power lunch," all areas of the market are being hit in the sell-off and the dow is down to a 500-point decline and oil has been holding up all year and the energy stocks are sliding down with it and it is down 6%. does that mean t rheun is done for the energy names we will get a trader's take we will get a trader's take after this ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪
2:27 pm
♪ ♪
2:28 pm
2:29 pm
♪ ♪ welcome back, everybody. 90 minutes left in the trading day. another rough session for the market let's get you caught up across stocks, bonds, the dollar, commodities and the potential for inflation deceleration let's begin with bob pisani down at the nyse. bob? >> and it's new lows everywhere. we broke decisively through that important level on the s&p 500 that joins the nasdaq and the dow industrials for new lows big names, broad, diverse groups at new lows on the dow industrials and salesforce and
2:30 pm
the growth areas they're under pressure more than anything else, of course we also see boeing in a new low and concerns in china and perhaps slowdown in the streaming service. cisco is in a new low and nike in a new low and fairly broad swath. we are seeing software stocks besides service, paycom, salesforce and adobe has been on a new low list on top of that. that's one thing that's interesting to me is trading stocks and i'll talk about the exchanges like intercontinental exchange, nasdaq new low, charles schwab, new low and indexing new companies and selling the etfs like msci, for example, s&p global and 52-week lows and down the road, trading activity may slow down a little bit and we may see this potentially with retail traders actually happening volume is still very, very high and they're still trying to remember, guess what's going on down the road. finally, we talked about peak everything we talked about netflix and of
2:31 pm
course, peak streaming we talked about zillow and peak real estate and peak travel. avis, the last four days since wednesday. avis was 290 at the close on wednesday. 230 today and that's a 20% drop in four days and all of the airlines, not down as much, but united and american also had tops just a short while ago and down rather notably and keep an eye on peak travel even though everyone is paying a fortune to travel this summer >> bob, thank you very much. bob pisani let's turn now to the bond market and the ten-year yield hit 3.2 earlier today and we are well off those levels and we are back to 3.08 and the 30 years for what it's worth up at 321 and this hit almost a 20-year high today currently trading just below 104 and we were over that level a little bit earlier on and as you can see on this chart that's a 20-year time horizon we're showing you and the strong dollar could be a headwind for
2:32 pm
multinational companies as we've moved through the year the strong dollar also acting as a headwind for commodities today. energy's been a place to hide in this market, but not today pipa stephens has the latest for us pippa? >> heavy declines in commodities with oil giving back all of last week's gains several factors to watch here. the proposal to ban russian oil is receiving pushback notably from hungary the country's prime minister said that banning imports would be like an atomic bomb on the nation's economy and trying to demand a global growth kconcerns and also hitting prices and the energy supply risk le maremains significantly mispriced and the roller coaster ride for nat gas continues down another 12.5% today. it's now down 20% from friday
2:33 pm
morning's high amid this, energy stocks are getting hit hard, by far the worst sector down more than 8% and eog and aoa and marathon oil down double digits thank you very much. >> just as we're talking about these contributing to inflation and the possibility of a recession and the big worries for investors and my next guest, some of the indicators are starting to look better and let's welcome in travis mccourt and he's institutional equity strategist this will be a big theme with cpi and ppi and is inflation peaking. is it falling? what is your message to investors? >> hi, kelly hi, tyler. i think the big picture is this is not all bad news and the economy has shifted quickly here from consumer purchasing goods to consumers purchasing services and that appears to be having a reasonably good impact on a lot of inflation indicators. >> well, that said, there's the sort of second-tier worries that
2:34 pm
it just means there will be more inflationary pressure and services, maybe not to the same degree as we saw in goods, but a stickier and possibly longer lasting kind >> yeah. i think it will be stick year, but the first leg is we should see inflation much lower than 8% or 9% every year the comps get easier and the wage growth is decelerating. commodities appear to be rolling over and the spot rates are down used car prices are done none of these things you could have said in january, so obviously since late february, investors have been looking at the bad side of everything and there's a lot of reasonably good news on the inflation front over the last couple of months. >> let me persist with the looking on the bad side. that's what i do i'm a glass half empty kind of guy, but all of those things that you cited, whether it's wage growth decelerating and used cars and so on and so
2:35 pm
forth. i guess that's good from an inflation standpoint, but could it be the sign that more than that, the economy is meaningfully slowing and that both globally and domestically and that the result of that will be lower corporate profits and almost by definition lower stock prices >> so there's a lot there to chew on. without a doubt the economy is slowing very quickly when you look globally, in asia and europe i suspect it's far more sustainable and so we'll just have to see. a lot of this that what we're seeing now is this transition from goods to services and if you're in a goods producing side of the economy, it may feel somewhat recessionary right now. you're seeing that in the trucking spot rates and a lot of the retailers, but in the service economy it doesn't seem good, it seems like it's never been better. there's a bifurcation in a big
2:36 pm
bifurcation economic trend right now and because of the state of the market the investors are focused on -- >> when you services have never been better, what kinds of businesses >> the easiest in the public markets. >> airlines and travel, hotels, restaurants and so forth yeah >> how about the labor shortages? are they -- i mean, there are some signs that companies aren't hiring as quickly, but golly, the jobs added last month was well above estimates, 400 and some thousand. >> yeah. i think i'll start seeing some improvement here annualized wage growth over the last three months has been running about 3.7% back in december that was 6%, and so if that continues you'll start seeing real year over year wage growth come down materielly as the year progresses and again, this is also due to the transition from goods to
2:37 pm
services it's how much easier it would be to staff a restaurant when amazon is not hiring half a million people at $40 an hour. >> very good point tavis mccourt, as always, thank you very much. >> thanks, tyler appreciate it. >> coming up, uber down big today down 50% from its high and the ceo warning employees help isn't on the way we'll have those details plus the nasdaq down 25% so far this year. you ride this out and wait for the rebound or should you sit this one out what should you do our next guest scaays sh is king we'll hear from that individual next is isn't my first rodeo, and let me tell you something. i wouldn't be here, if i thought reverse mortgages took advantage of any american senior or worse, that it was some way to take your home. it's just a loan designed for older homeowners and it's
2:38 pm
helped over a million americans. a reverse mortgage loan isn't some kind of trick to take your home. it's a loan, like any other. big difference is, how you pay it back. - find out how reverse mortgages really work with aag's free, no obligation, reverse mortgage guide. eliminate monthly mortgage payments, pay bills, medical costs, and more. call now and get your free info kit. - other mortgages are paid each month, but with a reverse mortgage, you can pay whatever you can when it works for you. or you can wait and pay it off in one lump sum when you leave your home. - discover the option that's best for you. call today and find out more in aag's free, no obligation, reverse mortgage loan guide. access tax-free cash and stay in the home you love. - you've probably been investing in your home for years, making monthly mortgage payments, doing the right thing,
2:39 pm
and it's become your family's heart and soul. well that investment can give you tax-free cash just when you need it. - learn how homeowners are strategically using a reverse mortgage loan to cover expenses, pay for healthcare, preserve your portfolio, and so much more. - look, reverse mortgages aren't for everyone, but i think i've been around long enough to know what's what. i'm proud to be a part of aag. i trust them. i think you can too. - trust aag for the best reverse mortgage solutions. so you can - retire better. your shipping manager left to “find themself.”
2:40 pm
leaving you lost. 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 what's it like having xfinity internet? it's beyond gig-speed fast. matching your job description. and it can connect hundreds of devices at once. that's powerful. unbeatable internet from xfinity. made to do anything so you can do anything. welcome back to "power lunch. i'm frank holland. we want to take a look at the so-called or defensive plays that tend to hold up during bouts of volatility. we'll start things like utilities and wxe and both up almost a percent and a half and exxon energy one of the better performing stocks and those names come with above-average
2:41 pm
dividend yields relative to the s&p. staples, another area working today. food stocks like campbell's soup, jm smucker, general mills and kellogg one of the better performers up 2% and campbell's soup up 4% and campbell and kellogg are up also 10% in the past weeks like sprouts farmers, weiss and kroger also holding on to their gains today tyler, someone who i know likes to supermarket shop. back over to you >> i do, indeed. thank you very much, frank holland, investors are looking for signs of a bottom. our next guest says he went to all cash in early april. what goes back to buy equities and phil tase who is portfolio manager at tase asset management phil, good to have you with us >> let me make sure i understand what you do and how you manage your portfolios and you talk about the market and following
2:42 pm
algorithms are you a classic market timer >> i wouldn't call us a market type timer and we don't try to predict what will happen to the market we attempt to react in the early stages of trends and this trend actually began in january where we were initially out of u.s. stocks on january the 13th and we came in briefly in march and left in early april and the whole point of what we're trying to do, tyler is to attempt to markets when they're rising and attempt to get out of the way of big train wrecks when you look at this market right now this is starting to look not great down 15% on the s&p. 25% on the nasdaq, and there's a shift in perspective, i believe, which is that people are used to buying the dip now there could be these bear market rallies and people could be the dip that's buying, unfortunately. so we think now is the time to be on the sidelines and yes,
2:43 pm
we're largely in cash. >> if i want to do something a little more exotic than just be in cash, what kinds of products would you suggest? is cash just a money market fund is it tips is it what >> so inside of our funds and etfs, a majority of them were just in cash instruments which look like money markets, but there are things out there where you could be you just saw some. energy or commodities is a place where they can potentially go. we are so used to having parts of the market do well and have such quick rebounds as we saw during the pandemic, but what if the opportunity lies just ahead. so, for example, even though things don't look great today and maybe the next week or month, if you are on the sidelines or largely on the sidelines what that may do is set you up for great opportunities later and we all saw the rebound in 2020 and it will happen again.
2:44 pm
so the key is patience with this market, waiting for it to find a bottom and we don't know when or where that will happen and once you do to potentially bargain prices and how do the algorithms distinguish between a short-lived bear market rally that peters out only to take you down lower and that -- that final flushing moment where you can confidently feel like, okay, now i'm going to lag into the market and when you do get back in, how do you do it what products do you use >> okay. so within our funds and etfs, we have just standard indices that we're buying and typically we're buying blend indices but the answer to your question is we don't know so if there's a bear market rally and it moves up enough for us to trigger back in, we can come in temporarily. if you look at 2008 when we were
2:45 pm
managing through that with the horrible equity market and we came back in and twice briefly earlier in the year we ended up sitting out for the entire fourth quarter so what you need to do is have a system to be agile when you come back in, you need to come back into things that have gotten beat up the most and just react to the markets rather than trying to predict what's going to happen. >> i love your line. the fed put is kaput i think that's quite apt do you have a viewpoint on whether this market looks like, feels like it could be as stressful as the 2008-9 market was. do you have an opinion there that's a high bar, but i think the one thing that one needs to look at is zoom out and look at history more carefully if you go from 1900 forward, virtually every decade had bear market, two and a half bear markets and on average those bear other mas were 40%.
2:46 pm
even if you don't get to a 50% decline like 2008 it's the standard course and we've forgotten that because the fed has been able to be dovish so effectively and so long. so now we're in a situation where we all agree where the fed put is kaput, and then not only that, but the fed could be coming in and adding fuel to a downward market as they keep being hawkish as the market falls. to us, it doesn't look great, tyler. woe would expect that we would go into bear mark territory and that's not saying a lot, and these investors can build in contingencies for the possibility when you look at the pressure of the market right now. >> phil, thank you for your perspective, phil taiz, thanks >> crypto getting crushed today. bitcoin fell below 31,000
2:47 pm
moments ago. consumer staples just about the only thing eking out a game and we'll look at other opportunities in the group amid the sell-off stay with us here on "power lunch. yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪ at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.
2:48 pm
2:49 pm
2:50 pm
>> welcome back to "power lunch. let's drill down on three outsized movers today starting with coinbase. shares are down 18% right you in they're below 85 as the whole crypto space sells off exxonmobil drops as oil plunges and clorox up almost 4% right now. let's bring in craig johnson, chief market technician at piper sandler. craig, welcome start with coinbase. what do you say about the stock? >> well, there's no question that the stay-at-home bubble here for coinbase has popped, but i don't think cryptocurrencies are going away, and clearly we're seeing shares of coinbase are very oversold. we're down over 70% since the ipo. at this point in time with it being as oversold as it is, a lot of the bad news is priced into this stock. i'd be looking for some sort of indication that the lows have
2:51 pm
been set >> taypically, what does that take, a number of days or rebound in the stock >> i would like to see a downtrend reversal of the stock. they say the lows are for sure in again, if we're so oversold when earnings numbers come out tomorrow, things would really have to be very bad for this stock, i think, to take a whole other leg lower because so much is priced into this. there's been seven street downgrades on this stock just last month a lot has been priced in fundamentally and technically it's too early to say that the lows are in. one is see some indication that you're getting a change in the chart. >> your thoughts on exxonmobil down today, but obviously the beneficiary this year of rising energy markets. >> energy is where it's at at this point in time it continues to be the best performing sector along with basic materials and these are areas where we're overweight at this point in time recommending to clients
2:52 pm
when i look at the chart of exxonmobil, i've got great relative strength, downtrend reversal happening on the chart and i continue to like what i see with exxon on here any sort of move from here really sets the stock up for a move back to 104, which is your '14 highs. so i think at this point in time exxon is one you want to hang onto i think you've got a nice dividend of 4% to get paid while you wait for the stock again, nice cash flow. so exxon is one to buy. >> before we get to your final name, do you have any perspective on why as a group energy is suffering so much today? >> i think it's suffering today because we're seeing some profit taking coming into this. when you talk to a lot of investors, they have not wanted to move away from some of their growth holdings. you had seen energy move up. you were hoping for a quick sell-off you're getting it at this point in time but i think it's just purely profit-taking when i go back and look at the
2:53 pm
longer term charts in energy, we're reversing downtrends we have not seen since 2014 big long-term downtrend reversals. setbacks like this, i think there will be opportunities to buy energy, not sell it. >> on that note as people still are trying to stick with what's working, clorox was a name that was initially struggling post-pandemic. it's working today what do you say about the stock? >> well, when i look at the chart of clorox and put up a very long-term chart going all the way back to 2009, we've broken the long-term uptrend in that particular stock. we have also seen over the last 18 months we've been in this downward trending price channel making a series of lower lows and lower highs. the relative strength of the s&p has also turned lower. it's up today. but for me this is not a stock i want to be buying in this market this is a stock for me that i would like to be selling at any sort of break below the 145, 150 range. it's going to take a big move
2:54 pm
above 173 to reverse a longer term downtrend this is one of these stay-at-home stocks where i think it's already burst and it looks like we'll get more downside in this even though it's up, i'd be using this strength to be selling clorox shares. >> very interesting. countertrend move on that one. craig, thanks so much for your time today we appreciate it. >> thank you. >> craig johnson. up next, uber shares falling about 7% today, off 42% so far this year. so will its cost-cutting strategy help turn the stock around that is next don't forget, "power lunch" is now a podcast. you can listen to the whole show, past episodes as well, by subscribing on your favorite podcast platform do it. you will be pleased you did.
2:55 pm
(vo) everyone knows to get wireless savings, you need to be on a family pla- ...oh... (jane) with visible, i get unlimited data for as low as $25 a month. no family needed. (vo) i guess i spoke too soon. visible. single-line, unlimited data as low as $25 a month.
2:56 pm
2:57 pm
shares of uber down about 10% as the company hosts its annual shareholder meeting it comes one day after the ceo said the company will become laser focused on costs the change was first reported by deidrdre bosa and she joins us now. >> well, he spent most of his short remarks during that shareholder meeting talking about how uber has become more profitable on that adjusted ebitda basis how they're positioned to keep growing. there was only a passing mentioned on the changing climate market the letter that he sent to employees last night was a lot
2:58 pm
more direct in confronting the current market which has really lost patience with unprofitable companies and creative accounting in that email he said they need to treat hiring as a privilege, be hard core on costs. look to better measures of profitability. here's the thing, though, he took over for the co-founder after another rocky period of the company ahead of the ipo to do the things he laid out in the letter major competitor doordash has been free cash flow positive the last two years and uber years hitting new 52-week lows today the thing that the email did lack was specifics uber has done a bunch of layoffs, sold off parts of the business amid the pandemic it leaves the questions investors are asking why are we seeing the stock down so much is what further levers can he really pull. >> it looks like he's trying to pull costs that's one, right? >> he does but we didn't get specifics. a lot of people commented saying does this mean we're going to see more layoffs
2:59 pm
he didn't say that he's cutting back on excessive marketing costs. isn't that something that he was supposed to be doing beyond that where does he have room he wants uber eats to grow faster but that's going to take some investment. they have already sold off their autonomous driving business, scooters and bikes that's why we asked. >> where and how is doordash eating uber's lunch, so to speak? >> well, if you look at a chart of market share over the last few years, you can see doordash came in and dominated the market the way they were able to do that is their ceo had a different strategy he started in the suburbs and then went into the major cities and that allowed them to really dominate at the time uber was undergoing some turbulent management changes so they didn't put as much into eats as they are now. >> all righty, thank you very much we appreciate it checking on stocks as we head out the door.
3:00 pm
the dow is down only 430 points, about the same as the nasdaq right now. tesla was trading below 800 earlier this hour and has climbed a little above that level now. >> and you look at the other four horsemen, alphabet, apple, meta and amazon, amazon the biggest laggard, down 4%. >> thanks for watching "power lunch" everybody. >> "closing bell" right now. >> thank you, kelly and tyler. more pain for the major averages to kick off this new trading week the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand. the nasdaq down 3.5% more selling to start the week after five straight down weeks for the zs&p 500. the s&p is down about 2.5% the only sector that is positive, consumer staples utilities are faring a little better you've got heavy pressure on energy, giving back a lot of rece

60 Views

info Stream Only

Uploaded by TV Archive on