tv Power Lunch CNBC July 15, 2022 2:00pm-3:00pm EDT
we can be part of the solution here if people have coverage we can move them into plans and nudge them to take better care of themselves. >> true. absolutely bertha coombs reporting. speaking of winners today like unh, netflix and snap are both seeing a nice rally and we'll trade them in today's three-stock lunch which begins on "power lunch" right now ♪ ♪ welcome to "power lunch. i'm jon ford in today for tyler matheson here is what's ahead lots of green this friday on wall street. inflation expectations fall, retail sales rise. is this a sign equities on the road to recovery kelly? >> thanks and welcome. it's a good day for the broader markets, it's been a tough week for software estimates cut and target prices slashed and multiples compressing. the sector on pace for the first week since february of 2021. this hour we're finding value
plays amid the deepening slump but first to dom chu for a check on today's rally. >> the s&p, dow and the nasdaq are up 2% and at the highs of the day we were up 658 points and at the low, still up around 145. that's just to give you an idea of the reign so far. the nasdaq is only up 1.5% from a sector perspective, definitely seeing that outperformance in the financials driven in no small park, driven by two of the big ones out there in particular. citigroup or wells fargo believe it or not, citi is the best-performing stock in the entire s&p 500 after it reported better than expected profits and revenues and strengthened the sales and trading units and it's making the more money given the rise in interest rates wells fargo is up big despite where profits topped estimates and wells did say that it sees
credit losses headed higher in the watch you are and albeit from low levels right now and by the way, among the banks that reported so far. as for some of the other stocks in the headlines and still watching a share after a wall street journal cited activist hedge fund elliott management had taken a 9% stake in the social media platform. also watch the solar stock enphase energy, first solar, sunrun, others and that's following an nbc news report citing sources that said democratic senator joe manchin of west virginia will not support a bill to address climate change and the alternative energy stocks like the solars, kelly and jon. back over to you >> let's stay on the markets there are several big questions investors are asking themselves. has inflation peaked or not peaked is it 75, 100 or 50 basis points
for the fed's next hike? no matter what the answers are, there are ways to invest let's bring in ann berry is thread needle ventures founder i guess we'll just take it piece by piece starting with inflation. where are we after this week, do you think? >> i think we're coming to the peak, kelly, but we're not sure. until we're sure and the fed is sure rates go up faster than expected as a result, we know the impact of that on the glamorous tech stocks and i will probably miss the bottom, but i would wait to get incertainty into these >> you're not eager to jump into that trade and it might be a soggy earnings season to get to first and that brings us to the fed and how important are you as an investor and they're likely to do it a week or two
i'm trying to invest rather than trade and it's trying to find through an upcoming recession and it created with a much longer term it's in the music space like apollo and kkr has spnt a large amount of money in music can the logs in recent years. there is good headline growth coming up where there are opportunities that tend to be more infused in the industry and they're trying to stay away from the volatility >> what do you make of the market action this week? we've got a hotter than expected cpi number we've got banks building up loan loss reserves and yet on the s&p we're ending after the divot and that seems to me to show a lot of optimism on the market and
i'm not sure that's a great sign >> jon, i think there's too much optimism in the market and the reason i say that is i look overseas and we see the data and expectation out of china that the gdp is coming down significantly. and the expression of the eu which is a soggy earnings season is factually the right one so i find the optimism that we're seeing in the market today is perplexing. i'm definitely more pessimistic than what we're shaking out this friday >> how would you read the consumer which is so important in q4 given that savings rates are coming down and consumers soon seem to be putting on a credit card whereas inflation, and the tape spend spending pattern is all over and is that priced in to the issue we've seen this week week?
the lot lost rates on casino credit as it is more information, when it comes to ad spending and the marketing budgets what tends to be the first thing to get hit when you see a slowdown in consumer sentiment. i don't think we have seen the market yet pulleyfully factor it can happen because inflation is too high consumer confidence despite the recent data today continues to ruffle and when we start to see labor market data get weaker because that will absolutely come, i don't think we've seen the bad news filter through yet either so far this summer or to the market expectations right now. >> ann, that's why i like your stock picks because they hardly reflect a super defensive positioning. you're looking maybe at netflix. maybe at paypal, warner music. you know, these take some cojones. >> thank you let's see how that wipes out
it comes back to a good macro pieces of evidence and music has tended to be recession resistant and the industry is underpenetrated compare to the video space. >> paypal, kelly and that is one that i'll be very transparent. i put money on that yesterday and i'm down on the the pay pag position. >> i look at what happened with stripes down round and pay pal still has the benefit of scale and it has the benefit of a good cash position and it has the ability to learn from some of the mistakes from the product innovator and it's buy now, pay later. paypal i pa paypal is growing its share in business credit cards and i think the longer term positioning of paypal could be more attractive than the valuation today suggests. >> it's hard to think anything, but to think long term with the way the market is lately ann, thanks for your time.
we appreciate it >> thanks for having me. >> ann berry. one of today's market drivers the better than expected retail sales showing that the consumer continues to remain resilient even as inflation remains high sales were up 1%, sending the major retail etfs higher our next guest says the numbers are making one thing clear we're entering an environment where boats float and former ceo of toys "r" us and hudson's bay. >> how is this showing us that boats don't float. the big losers to the prepandemic, and sales were actually down if depend stores where retail was up 32%.
it's a massive loose loss, when they take it to their room on the pandemic and the trench before the pandemic are being even exaggerated by what's going on letta look at e-commerce e-commerce are up 64% versus june 2019 before the pandemic so that's double the rate of growth of retail sales as a whole so department stores, mall-based apparel stores and companies that never really fixed their strategy we saw that with gap and bed bath & beyond and they'll be in a world of hurt as we go forward from here. >> amazon is way down and amazon seems to have backed away from the pull through narrative during the pandemic that we have a year's worth of growth in just months and this has accelerated us toward the future and the stock action and amazon suggests maybe not and yet prime day was
very strong, historically strong even as department stores are down what should investors take from that >> e-commerce is here to stay and it's growing very, very rapidly. >> i think amazon kind of got a bad knock. they reported first and it's a month off. so amazon reported first and they say oh, my gosh look at how terrible amazon did in the first quarter and then they heard from target and walmart, than amazon should. that means they have room to grow they have tail wind. they'll keep growings, growing, growing. never, ever bet against amazon that was a mistake when we were doing it, i think it's a mistake now. familiar names like costco and home depot are a little controversial.
do you think they'll be fine >> home depot were incredibly strong during the pandemic and they're still strong i think they're a big winner over the long term capturing massive market share and t.j. maxx didn't have the strongest pandemic, let's face it. their stores is where the action is not online for them, but now that they're open again, they're going to come back you know their market cap is still more than the entire industry combined. all of them are worth less, and value is the name of the game and still is p maybe the kind of problems that we'll see with consumers in the back half of the year and a company like tjx is well positioned like dollar general will be and even target and walmart who disappoint with the way they handled last quarter will do a lot better when we get to the second half of the year. >> jerry, i'll ask you how you read this because it's a couple of numbers that have been on my mind for the past few days one is the savings rate which is
down, right? the banks are talking about how, yes, customers have more savings in their accounts than before and they seem to be spending that down pretty quickly and consumer credit which has been historically high ask consumers seem to be getting more hesitant to put more on the credit card, perhaps interest rates are going up, right? what does that mean for the second half of the year and are we thinking enough about that? >> consumers are very strong now. the numbers the other day which were strong didn't even include travel or transportation or hotel and lodging and you know those are way up and consumer spending right now they're spending money that they say that they're going to run out of it. with the arrate of inflation, sales were basically flat because the increase in sales basically matched the inflation rate and they've got the same amount of stuff as they did before the inflation took off. that savings will start throwing
out. the one thing i've seen they will spend until they've run out of money yet when we get to the fall i think we'll see more problems and that's where i say again, the value-based results will thrive we'll see that they never fixed their business and there will be big problems in some of those factors. >> that's what i'm wondering about. >> and coming up on quote power lunch road trip heads to cleveland. the national housing market showing signs of slowing, but a frenzy of activity is happening in ohio. we'll look at what's helping the marks stand out. plus investors hitting hard with theers ttf down more than 10%. >> which kare the ones buying on the dip? that's next on "power lunch" stay with us
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amazing things we're gonna learn. through projectup, comcast is committing $1 billion so millions more students can continue to get the tools they need to build a future of unlimited possibilities. welcome back to "power lunch," everybody. we're on the next leg of the powerhouse road trip hitting six cities for a look at how the housing market is changing today we arrive in cleveland, ohio according to zillow's latest report the median price is under $187,000 sales are up 30% year on year, 50% for the month. inventory down 10% from last year, still up from last month and 51% of homes are being sold above listing price. for more let's welcome back kim crane with real estate services. the median price sounds low.
maybe you can expand for us and what are the price dynamics we're seeing >> we are seeing high demand and low supply, as you mentioned and we're still not up to the 2018 and 2019 numbers and people are wanting to lock in those rates and take advantage of where they are now before things climate this time. >> what are some of the properties that you're seeing? if these numbers are right and sales are 50% month over month 30% year over year, this sounds like 2021. >> it sure does. it's actually even stronger. our second quarter of 2022 we were seeing multiple offers and homes that were listed for 289, selling for 335. seven offers or more no inspections and waiving appraisals and people were eager to get in and lock in that rate. >> how much is the market shifting, though and how active are investors in this market i keep hearing from various regions and friends who are trying to sell or what not,
saying that even week to week things are changing. >> it always simmers down in the summer seasonally and we can say it's still strong in cleveland, ohio >> we have multiple offers and multiple homes over the weekend. people want instant gratification and they want to move in and be turnkey and ready to go whether it's a painter or kitchen remodel, there's not enough workers in high demand to get projects done so people are willing to pay a premium for things done right. >> who are these people? where are they coming from and what about mortgage rates? >> well, it's still for a jumbo at 5% or, you know, a conventional 5.5 it's all reasonable and it's not code black yet we are in a good place we see people relocating who are in bigger cities and finding that they don't need to live in the bigger cities anymore and they're trending to the suburbs and they're finding, you know,
the trend is smaller communities. >> let's see, lower inventory. let's see, 51% of homes being sold above listing price sounds like a terrible environment for first-time homebuyers what are they doing? >> it is hard. you know, we're trying to give everyone an advantage here we do see a lot of cash in the market, but if they can get in and lock in now just waiving appraisals when possible it's hard to get in with fha and other situations, but we try to come up with some creative approaches to get here >> where do you go from here, kim? with what the summer and fall look like in cleveland we didn't have enough new construction or national builders here. the supply is just not enough. so we are glad to see that things are still strong and we're hoping that continues and we don't want to be doom and
gloom. we're still in a good place here and it's a good place for buyers to get in reasonably and sellers take advantage of this market at this time. >> it's a remarkable counterpoint with it going on on a macro level. kim, thanks for your time today. kim crane. coming up, more on this markets climb today. the indice is higher onboard and late june session highs and it's been a cloudy week for cloud stocks the etfs tracking the space all down more than 5%. are there hidden gems in this drop, plus three firms reiterating their bullish calls on big tech while slashing the price target we will discuss in three-stock lunch and the crypto crack spreading between crypto, bankruptcies price declines. 'lat's the scope wel see. "power lunch" is back in two
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the best performer in the blue chip, dow jones industrial index after the giant reported quarterly results at top analyst expectations and raised its full-year forecast due in part to stronger result at the optum health unit which provides health care services by the way, not only is united health the best-performing stock in the dow, it's also the most heavily weighted given its high share price meaning that out of the roughly 570 points we're up rid now, 170 of it is just unh alone, john, i'll send things back over to you >> wow that's a healthy contribution. >> let's get to courtney reagan now for a cnbc news update court? hi, jon. good afternoon here is your cnbc news at this hour the house passing the women's health protection act. texas democrat henry comer was the only democrat to vote against the bill joining all republicans.
the house also passed the right to travel for an abortion. both bills are headed to the senate where they're expected to be defeated. donald trump's former adviser peter navarro rejected the plea offered to him by the government navarro was indicted on two counts of criminal contempt of congress after refusing to comply with demands from the house select committee investigating the january 6th capitol attack. >> and the centers for disease control and prevention releasing new data saying people ages 5 and older in the u.s. who aren't vaccinated had a six-time greater risk of dying in may when compared to those who had one vaccine. at this time 67% of the u.s. population is fully vaccinated while 78% have received at least one dose of the covid-19 vaccine. kelly, back over to you. courtney, thank you very much courtney reagan. >> time now for our etf tracker and this year we're looking at the cloud computing stocks which are taking a dive, and the $178
million as of last night and it lowered outlook from unity software and the job cut announcements and having cautious comment or like bill mcdermott in a cnbc interview. add it all up one of the names with the cloud computer etf and the global x cloud etf all down 8% or more this week and the data comes from the partners at track insight. more information is available on the ft wilshire etf hub she said, john >> let's say more about that still ahead, more on the cloud and ftresowa stock slump underperforming the broader markets this week. we'll be right back. 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.
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we've got 90 minutes left in the trading day, and we want to get you caught up on the markets. stocks, bonds, commodities and software stocks coming back down to earth let's begin with the rally and bob pisani bob? >> 5 to 1 advancing the declining stocks that's a pretty good number for a generally down week. that's the only up day for the week the problem is the volume is not there yet. we're not seeing enthusiastic buying and sort of an exhaustion of the sellers at this point,
but what they are going for is a little more of the growthier part of the market and ark innovation, and cathie wood having a good day and the retail on the strong retail sales numbers, good day and these are all growthy sectors of the market big-cap tech, good day overall a mixed week apple's up about 1% overall for the week, but that's up today. microsoft is still overall down for the week and they're mostly on the upside. nvidia up, google up and google has had a tough week alphabet down 6% for the week. elsewhere, another strong day. people are playing the travel and leisure play right now so we've got some of the casinos that are strong today. the airlines generally are up. hilton and some of the hotels also are having a strong day and they're among the biggest performer in the s&p 500 banks are having a good day because citigroup helped turn
everything around, but don't kid yourself yesterday we were putting up 52-week lows for all of the money center banks and all of the big regional banks like pnc financial and we were at 52-week lows and so they're turning around a little bit and again, not a good weekfor the banks overall. finally for the s&p 500, we're down 5% for the week and still in a trading range and 36.60 and the that was back in the middle of june and we're at 36.60 to 3900 and 50 points below that, not bad considering all of the pressure the markets are under jon? >> yeah. you can see those hills on the s&p chart. now to the bond market where yields are falling and the yield curve narrowing as weigh wait to see what exactly the fed will do with interest rates later this month. rick santelli back in the action rick >> well, you know, if you look at retail sales, maybe in certain ways you can say it was
about right with respect to the fed, and i'll tell you what i mean the numbers look pretty good, adjusted for inflation they didn't look quite as good, but fed funds futures for december at the end of this year are up about eight basis points today and interest rates like a two-year note yield are unchanged on the week. what i garner from that is that the market isn't acting as though retail sales was strong enough to be that 100-basis-point push and i'm still in the three basis point cam and while two-year notes are unchanged and at 292, they're down four on the day and they're down 16 basis points on the week and open the chart up to early june and we closed just a whisker below 3.5% and not only does that become elusive and just 3% has been, losive and th look at the week in bunds. they're at 113
three weeks ago they were at hig and the high-yield etf as it moderates a bit, they'll close at a five-week high and this week as the euro versus a dollar, tuesday, wednesday, thursday, we flirted with 100. today we were aren't really close to it and even though it moved away from that level on a weekly chart, it's still the lowest close since the third week of november 2002. jon ford, back to you. >> just trying to predict what comes next who knows? thanks, rick oil closing for the day as the president touches down and fist bumps in saudi arabia in an effort to lower energy prices and pippa stephens has the numbers. pippa? >> hi, jon oil is getting a boost today, but still on track for a fourth negative week in the last five as recession fears weigh brent crude is back above 101 with wti right around 97.74 for a gain of 2% president biden arriving today
in saudi arabia, but officials saying no immediate output boost should be expected from the kingdom. the white house officially announced this trip back on june 14th at which point wti was trading at 119 obviously, a lot has changed since then and we are now below 100 bucks, so pvm noting the president's case here for more saudi oil has been significantly weakened by this latest price drop looking at nat gas, it is up another 6% today and crossing above that $7 level for the week up more than 16% for the best week going back to april and all of this translates to a boost for energy stocks. every component is in the green led by the refiners and marathon petroleum and phillips 66 and valero, john, all up more than 3% >> pippa, thank you. >> software stocks higher today, but having a rough week. s&p software and services etf underperforming the broader
market down 6% on pace for its second negative week in three. unity software, freshworks and e2 parent holdings are all down double digits since monday >> joining me to discuss the software slump, the senior research analyst at paper sandler. brent, confusing action, to be sure, but also there doesn't seem to be a lot of belief in software there are a couple of different ways that you can look at what unity did this week and maybe they picked up a good acquisition at a decent price or maybe they're just spending money. >> yeah. i mean, listen, you have to put it into perspective and one week and let's put the software group into perspective looking at the group that's been down consecutively for eight consecutive months and this is a group that's down 52% since november alone so yes, it's been a tough week and we've had some specific catalysts that are weighing on some of these indexes, but we're
still up month to date july is actually a first soap bar. month to date, slight bounce that we're seeing a cloud software and there's still a lot of concern microsoft last week and we're going into earnings season here in july and august where we expect pretty challenging kind of numbers as you think about a possible growth reset in the software space and you start to think about some of these increasing recession risks starting to impact cloud spending so it's been a challenging eight weeks. yes, it's been a challenging week and unity software made a very strategic acquisition, but that's basically going to create an environment here where the arms take over the stock in the next six to eight months and more of a company-specific issue. >> which makes me wonder is it
even worth talking about software as a whole in this environment where on one end you've got microsoft which is fortress software and people feel like even in a down environment they're diversified and they have small business and subscription and then you've got smaller players that aren't necessarily enterprise and maybe they're gaming players and maybe they're dealing with small business and maybe they're pre-profit and they're a lot more volatile. >> software's a big category and it's a big category because of the attributes of software and these are high gross margin models and yes, the cloud 100 is unprofitable and the other half is profitable and it's painted with a higher risk lens and that is completely appropriate and if we go back and look at the lessons of '08 and '09 and it was high risk and high growth company not generating profits,
it was one of the first names to see a sell-off in the names and it was one of the first software names to actually rebound. salesforce in '08 and '09 actually went up in the first number there and a year later when the growth was, the stock was double from where it was the first cut numbers. so there is a lag and the market overreacts on the upside and these were names that were overvalued and we overshot the upside and we are likely to overshoot the downside, as well and it is important to note that software typically bottoms from a stock perspective four to ten months before fundamentals bottom >> four to ten months before the rest of the market so salesforce has returned 4,000% in two years. what do you think has that kind of upside potential in the space? >> so we think it's important to be selective we've actually outlined four different routes that have different risk characteristics
maybe i'll just stick with the play it safe route these are the names that have the highest cash flow potential and these are flames like viva systems that sell software and are digitizing the drug process and trying to reduce the time it takes for the life sciences company. that's a company with 40% free cash flow margins and very attractive entry point here if you want a play it safe route and we also like sales force again here with the sell-off and it looks pretty compelling and it's a lower valuation multiple tha than oracle and those are safe and we will recommend. >> what if you really wanted to take a flyer and go the furthest out on a limb that you could go. where would you have people look >> two of our favorite flyer names that we think could be big businesses longer tomorrow are
mongo db and build.com which has the finance stack for small businesses and those are two names if you're willing to close your eyes and take little risks now, look out five years and they could be big companies. >> in the break, jon will explain to me what they do >> veterans who have been through downturns before >> that's an endorsement if i can call it one. >> it's an observation >> an observation. >> brent, thank you very much for your time today. brent from piper sandler both investors and companies seeing losses in the volatility and we will break down the action first a programming note, tonight at 6:00 p.m. eastern we have a cnbc special report, taking stock the state of the marks rk tgee t every corner of th maeto t actionable trade from leading analysts. you won't want to miss it. stick around we're back in a moment
it owes nearly $5 million to users and it marks the third major crypto firm to go bankrupt here to discuss the losses that we're seeing is our own mackenzie sagalos. welcome. i wish it were a better topic and the biggest question people are asking are people when put their money into the platforms get it back? >> sure. you take the example of celsius who went bankrupt and it has alameda research and then it has 1.7 million customers. who do you think is last in line to get their money back and the setup was such that the customers who gave the money to the platform, they're getting no collateral there and there was this high risk, high reward and customers were left holding the bag. >> it wasn't necessarily presented that way it was an idea of apr and you will get this guaranteed crazy high interest that you couldn't get from the savings account from the environment we were
just in. is that whole model likely to go away >> it is the steel coin project which a lot of this crypto contagion began back in may and finance was a platform saying this is a safe investment to make so people are taking issue to that. >> to your question of is this going away and the double digit apys and it's looking like the riskier platforms that didn't have a strong business model aren't going to survive and celsius was bringing in new deposit or funds to payout obligations and they were also -- they were being accused of running like a ponzi scheme and they were investing their money offering double digit apy in order to keep this whole thing afloat that being said there are platforms that operate a completely different business model and they are investing capital in a money market and they're over collateralized and they've taken different precautions and they're not offering you a 20% apy, but it
is a place where you can park your cash and wie seeing them associated with the platforms up 11% in the last 24 hours and there is confidence in the space. >> meantime issue the miners are still going strong in some cases. we saw them pausing activity in texas for the blackout and usage has been another controversial part of crypto and six democrats in congress including elizabeth warren and saying top crypto companies saving money in all of the homes in houston and we should expect this scrutiny to continue if the entire industry isn't decimated by the end of the year >> right but the narrative that's coming from the other side and those miners are saying we're flexible buyers like power buyers and the reason why it's good to have more demand is because texas has all of this renewable energy and adding wind and solar power to the grid isn't automatically a win. >> you need to be able to even
out that demand and even out that duck curve and that's what bitcoin miners, and when nobody is using as often at night and that's key for pricing, right? because you could have prices go negative and that even that way having it be stable it's a win. >> i wonder if a casino can easily turn into an arcade, and then the buffet is running from the hotel rooms and then i have to put a quarter in this and then you play and then another quarter in i guess it's probably 50 cents now. >> right a the a dollar. >> and we'll see the demand when it is not so attractive. the people who remain will be well placed to do well because a whole lot of others are being swept out. >> and very quickly. >> mackenzie, thanks we appreciate it
mackenzie segalos. >> microsoft, snap, netflix. should you buy big tech? xtr trader will share a take ne another busy day? of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want - your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities.
lunch. three big tech analysts calls right ahead of the start of earnings season. ubs cutting netflix price target in half. microsoft outperform but dropping the price target to 305 a share. and jpmorgan reiterating snap as overweight despite the brutal stretch for the stock saying the company just needs time to re-establish credibility let's bring in scott nations, nationshares president and cio to trade these names today first up, netflix. do you think it's gotten cheap enough, soucott, to binge on it here >> that is what really matters here i would be a buyer of netflix. congratulations to ubs figuring out subscriber growth is going to be a problem welcome to the party, pal. it has gapped down horribly the last two earnings announcements, but investors have overreacted
the company went from doing no wrong to can't do anything right. and the changes that they're making, that is ending password sharing and the new ad-supported platform that we're going to launch that microsoft are going to help, pe now of 16. surprisingly netflix is quite a bargain and i'd be a buyer. >> we're starting to hear a lot more cautious bulls on that one. it's going to be interesting next week. what about microsoft >> you know, microsoft is the blue chip in the tech space. they do have some legitimate problems fx is going to be a problem. the consumer pc market is going to be a problem. that's about 30% of their revenue. those are all valid. it's not quite as defensive as we would have hoped. it's down from its 52-week high just about the same amounting that the nasdaq 100 is you would hope it would have been a little bit more defensive with a trailing 12-month pe of 27 and a current year pe of 22 it's not cheap, but it's a
strong number two in the cloud space. i think it's a hold to accumulate the interesting thing about the cloud space, somebody is going to spin off their cloud division i don't know if it's microsoft and azure or amazon and aws. when that happens, that is going to be fun to watch. >> will it though? okay final name, snap, it's crackling today, but can it pop higher. >> i remember when snap came out, we all loved the idea that our messages would eventually disappear. i think all that's disappearing with snap is the opportunity to make a profit. they preannounced disappointing q2 revenue and earnings expectations and now they're expected to post a loss. jon, i don't know why you'd play in this space at all right now twitter is 50% from it's 52-week high meta more than 50% from its 52-week high jpmorgan say snap's problems are macro in nature.
i think they're micro. the company is trading at four times current year estimated revenue. snap is a sell >> all right that's the one you don't like. scott nations, thank you >> thanks, jon. up next, the beaten down s&p stocks that are bouncing the most today 'lteou about some of the biggest movers power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity
welcome back to "power lunch. the dow is up 598 points, just a little bit off the session highs. we have been up as many as 657 jpm, goldman and united health all leading the dow. jpm was the laggard yesterday. some of the most beaten down s&p 500 names are seeing a big bounce and dom chu is here to catalog them for us. >> if you take a look, we went through the counting and, jon, as of 30 minutes ago there were about 30 stocks in the s&p 500 that have fallen 50% or more from their reeccent highs remember from the record highs we've seen, we're down roughly 20% from those levels. some of these stocks are brand name large cap stocks that have taken a huge hit this is the debate about whether or not there's a certain value you can fall by where you start saying maybe it's worth picking up even if the prospects aren't
enormously great going forward the number three spot for that, a name that we've been talking about for a while, netflix shares since the highs, it's down 70 some percent from those levels so that precipitous drop but you can see that consolidation area down at the bottom is there a point at which you could see a little more buying interest it's one of the best performers in the s&p, up 7.5% right now. the number two biggest fall in terms of the overall from the highs is etsy. again, you can see this consolidation area down here but also again some two-thirds plus of their value gone so one of the best performers in the s&p, up about 4% and the one that has fallen by the most, tech and tech adjacent, we're talking about paypal so fintech has been one of those hard-hit areas and remember there was a time we were talking about paypal as rivaling the market value of some of the big banks out there.
was it on track to kind of get up there well, that move that we've seen now lower has it up by 6% so far today, even though as you can see it's lost three-quarters of its value over the course of the last year. it's been a steady decline so as we talk about stocks that could see more volatile bounces, it's not that anybody is trying to call a bottom we know that's a fool's errand but some stocks that have had a precedent of being very high and have lost a lot of their value now and are big on some of these up days, that's going to be where you look so you look at the list and say to yourselves which stocks have been there before, will they be there again and make the fundamental arguments for why the valuation may or may not be relevant at this point. >> dom, how much of today's action is a recalibration from a bet that the fed has to do 100 basis points today oh, no, just 75. >> i think a good amount of it you can make the academic arguments all you want at the end of the day a lot of people use formulas to assess
values some of those risk-free rates come into play and treasury yields matter. so how much more are you going to pay for a stock if you can get risk-free money at a certain level at a higher rate. >> the university of michigan was the biggie dom, thanks. jon, thanks. this was fun we appreciate it, everybody. thanks for watching "power lunch. "closing bell" starts right now. thank you, kelly and jon strong consumer data and a big rally right now in the financials, sending stocks higher to close out the week the most important hour of trading starts now welcome, everyone, to "closing bell." happy friday i'm sara eisen take a look at where we stand, near the highs of the session. s&p 500 up 1.7%. we are recovering a little from the losses on the week we're still down about 1%. the first gain for the dow and the s&p. the dow zooming, up almost 600 points the high of the session was just over 650 the nasdaq up 1.