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

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uniquely we want people who have a deep, deep passion for climate and want to do something really impactful with their work. >> really what we've learn side there are jobs out there for anyone in the space. software manufacturing, installation and more traditional rules like accounting, hr, marketing and more a lot to come. >> thanks, kate. "power lunch" picks up the market coverage right now. ♪ ♪ welcome to "power lunch. i'm contessa brewer in for kelly evans today. we are watching this big u-turn on the markets and slamming the brake on the morning rally and wiping out the gains that follow the jobs report and we're tracking the decline and we have a lineup of market pros to help us navigate the volatility and let's get to tyler with more on the sell-off. >> welcome, everybody. the market's earlier gains are all gone the dow had been up as much as 370 points and now down about 280. that's a 650-point turnaround.
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the s&p 500 also lower today by about 1% and right now the nasdaq is down 1.38% it is a bit of a perplexing day as we head into the weekend. there is news, but there is a lot of uncertainty around that news 3m, dow, intel and the biggest laggards on the blue chip index and the dow transports, they are down as well and the sector led lower by jb hunt, old dominion and csx. contessa >> let's get right to the market panel and keith fitzgerald, bob pisani joins us and mike santoli. let's begin on what may have sparked this big turnaround. >> it seems the headlines about russia and essentially going to close down the natural gas pipeline to europe timed perfectly with, yes, was there a mechanical rally this morning, but the surged right on that it was very much the script was starting to run on the risk
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aversion we don't know what's going to happen over the weekend and we're worried about europe falling into recession, and it seemed as though it was hitting a market that was already a little bit fragile both on the upside and the downside with these illiquid air pockets and right now the s&p just a little bit above yesterday's lows from where it bounced intraday. >> bob pisani, what are you hearing from traders >> 60 to 70% of the people i normally talked to weren't in today, this is the last day before labor day and half of the rest of them left right after the jobs report. so the jobs report was good. unemployment ticking up a bit and wages softer than was expected and it was an excellent report and anything happening here negates the fact that overall inflation's peaking story got better today however, look what's going on here very thin volumes. people aren't in
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mike's point is very well taken here we've got a three-day weekend where we've got china lockdowns going on we've got a lot of problems over in europe and we have a defensive going on in ukraine and we have the pipeline being shut down. we don't really know and it would make a lot of sense to lighten up a little bit going into a three-day weekend i'm not terribly concerned about this i think that there's just an ongoing problem with buyers trying to get enthusiastic when they've got so many unknowns going into the month of september. >> keith, your reaction here a lot of people want to lighten up can you help us lighten up >> i can certainly lighten up the humor. we can't take ourselves too seriously on days like today this is a classic run pool like bob laid out a lot of people literally walked off the floor to go to the beach. you have a market that got ahead
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of itself which means that there are hijinks going on behind the scenes that causes reversal. i would caution people stay focused on the big picture and the companies you know that are going to survive because history shows big, down days on big volume, temporarily are good buying opportunities >> i have to say that your cautions are very memorable, very catchy and the one that i have in front of me from you, keith, is don't do stupid stuff. so today in particular what would you consider stupid? >> thank you for pointing it out. we can in plain english all of the time don't do stupid stuff. today qualification on stupid stuff is a knee-jerk reaction and it would be trying to run for shelter when the better play is to wait on the companies you missed or change up your tactics. it's making rash decisions that
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get you into trouble particularly when the stuff hits the fan because it's not evenly distributed. >> mike santoli, let's talk about -- we have today's jobs report which was a pretty sweet one, but it seems to me that in the past week there has been a lot more focus on the possibility and the probability of recession coming and that that is going to slow profits and it's going to slow globally and it will slow stocks and there may be an earnings recession before or contemporaneous to a real economic recession >> well, there's no doubt that that theme has been a lot more in focus and i think the reason for it is what jay powell said last friday which was essentially that this fed is not going to be data dependent on how it looks at what it's bound to do on interest rates. the point being, today's jobs number was reassuring. it was neither too hot nor too cold and it also probably doesn't give any sort of excuse
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to a federal reserve that looks like it wants to get rates up to a certain level in a hurry and is not particularly worried about the wear and tear along the way. i think it's better to have an economy that we now see in the jobs report that's more resilient that's in a better labor market to withstand whatever the fed's going to do, but you do have some bears out there and some people who will say, look, the lagged, fekts of the tightening that we've seen by the fed or the fact that the globe is slowing down and china is where it is can tell you that maybe the u.s. is just by definition going to follow down that path from slowdown into recession. it's not a foregone conclusion, but clearly, we have to worry about that as one of the probabilities. >> bob, you mentioned the shutdown of this nord stream, this gas pipeline and the cited reason is because there was an oil leak do we believe that at all? >> no. >> right exactly. i guess it doesn't matter.
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the pipeline is shut down so who cares, but what we've seen and meantime the g7 has agreed on some kind of price cap for russian oil to the extent that that is enforceable. so what we're seeing is the weaponization of energy, correct? >> that's right. >> this is part of the problem that we're trying to figure out just how much of this is the demand side problem where we're going into a slower global economy before oil's going to be down and in a sense, we want that because that's what the fed wants. they want a slower economy at the same time there are supply issues that are impacting this and this makes this headspinningly difficult to figure out on a daily basis, and you can see how oil stocks had been on an up trend for several months alreadyon the belief that eventually we were going to get our hands around the supply problem and now it's moving to the downside again on concerns
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that the demand side this week, that the demand side is going to be a real problem. the whole global commodity thing is really difficult to figure out and we want commodities down because that supports that inflation is peaking narrative that would help the federal reserve, but it doesn't cooperate with us all of the time we have this addition overlay of russia and ukraines on the aftereffects of covid. this is just really difficult to figure out >> we're showing the charts that show energy wti crude up 4% and we've seen energy under pressure this week. in the meantime, you've got the nasdaq down more than a percent. the dow and the s&p down almost a percent, as we mentioned before really reversing the earlier gains that we saw after the jobs report came out let's talk a little bit, keith, about where investors should park their money right now if we're heading into a season of
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volatility. >> you know, that's a very interesting question, right? and it comes back to what we talked about earlier don't do stupid stuff. this is not the time to be a hero i would urge people to do that with the right% pk perspective this is where you go to costco because people will still eat and they've got multibillion-dollar brands on tap there. this is where you go to defense stocks because the world is a complicated place and they're low beta, high-dividend choice wes long, extended history of taking care of their shareholders and i submit it would give you a far further find on general mills does this factor at all into your thesis that people should be choosing brands or off-brand names? >> that's a sharp question and
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yes, which is why we take that costco on the other side of the equations. they're household staples and in the events people will change how they by. i know youio youa a strong situation on the chip business n vid wra and amd dropping because of some of the moves that we've seen with regard to china. talk to me about how you're thinking about those two stocks. >> sure. the situation is this, right we have created 90% or more of all of the data in the history of humanity within the last few years. that genie is not going back in the bottle if we look at companies like nvidia, amd andintel to some extent it's logical that those will get pushed back now because those are highly leveraged stocks in terms of how the traders hold them and use them a pulldown is something that do i want to nibble in or go and the answer is yes. you have to slow that down and
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people are going to change the way they buy, but they're not going to give up their chips and they're not going to derail the digital process and people are not giving up their iphones, for example. every single thing in my life has chips and when that becomes a priority, i submit that those guys will come out of the basement when people don't expect it. >> thank you guys. >> the big issue hanging over the market right now, think, is inflation and wage inflation in particular and what the fed will do next and whether it can engineer a soft landing, i.e., avoid a recession. with us dave rosenberg, founder and president of rosenberg research dave, welcome. good to have you with us. >> thanks very much. >> can the fed engineer a soft landing? >> no. >> all right, thank you very much, dave rosenberg
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it's been great being with you why do you say it's so tricky? why do you say they can't? >> firstly, when you look at fed tightening cycles we get a soft landing 15% of the time and hard landings 85% of the time so if you're playing the probabilities why would you make your soft landing your base case this fed is tightening policy both through interest rates, by the way and they're doubling down which is just starting. they're raising interest rates into an inverted yield curve every cycle and i said at the beginning of the year i said just watch the yield curve inverts and the fed and the consensus economics community will find a way to tell you ignore the yield curve the last time the fed tightened policy into back-to-back corridors of negative gdp and the yield curve was the volcker fed and everyone seems to love the fact that last week, jay powell compared itself to paul volcker and used the same
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language that paul volcker may have used and paul volcker was revere in the financial community and he killed inflation in the early back-to-back in 1980s. so the proof of the pudding is in the eating and the debate, of course, gdp and the economy's plat on its back and the first two quarters were dominated by omicron and china lockdowns complicating the further global supply chain that was the first installment we haven't seen what the fed has done that will show up at the end of this year into next year the first two quarters of this year and if you average gdi and gdp and we'll just say the economy is flat on its back. even if you don't think there's a recession it's stagnant, but the fed's actions haven't kicked in yet and that's going to be the story for the next 12 months and that's why the recession, if you don't believe it it's
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already started and staring us in the face. >> the fed has not kicked in yet. the quantitative easing of it is sort of this underreported part of it when they're pulling cash out of the system. i wonder why, though, if the economy is flat on its back why is hiring as healthy as it is? >> well, actually hiring is not as strong as it seems for a couple of reasons -- >> 500,000 jobs the prior month and 300 and what thousand this month -- 315 >> i get that. when you look at the joels numbers you'll see the hiring has been coming down really what's supporting the employment picture is companies are not laying off anybody the employment month to month is a net number the hiring rate is not that strong what's happening is that companies are fearful about letting people go and they won't be able to hire them back.
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i think the real kicker and i think what happened is that bonds sold off and equities rallied and the first little while with the non-farm number until some sophisticated people look beneath the veneer of the headline remember, it's an employment report and it's not just one number and what everybody does is they report the non-farm payroll number no one seemed to report today, but some people caught on was the kicker that the workweek was down 0.3% and the workweek is the leading indicator for the economy. the workweek has been flatter down each of the past six months, and so when you're down negative .3 and you look at that holistically as to what that means for employment, it actually means that the non-farm payroll number was actually negative 150,000 when you counted the fact that people were working fewer hours and when you're looking at the overall economy it's totally the
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input that matters and really, the important thing out of the employment number today. that's why i totally disregard today's number was goldilocks or it was a good number no, no, no you're not looking at the workweek the input into the economy was negative .1% it was down a tenth, and i think that's what people looking beneath the hood >> that materiels you people are working less and when you are working less, you have less income coming in so you won't spend as much. >> good point. >> contessa? >> wage inflation may have the slight increase in labor force participation. 62.4% in august up from july when the rate was 62.4%. just this week i had conversations regarding wage inflation and the utter frustration that the fed was not going to be able to do about how
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many workers we had versus how many job openings we have especially if -- and this has nothing to do with fed, it has to do with the lawmakers dealing with this issue of immigration how do you factor out how many workers we have with where the jobs are and how do we fill them >> look, immigration is a wonderful thing. you know, in canada, there's tremendous immigration and yet wages are really accelerating in canada so you can't just look at one particular element i think what's happening when you look at today's number, i think that what we're seeing which is actually beneficial from an inflation standpoint is we're finally starting to see a thought in the labor market happen on its own without immigration, like, for example, what did we see today? we saw that female participation rates 25 to 34, let's call them working mothers. the participation rate went up
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to the highest on record and we broke above pre-covid peak and that's a sign that the covid fears, covid fears haven't gone away and the female participation rate was going up and that wasn't happening three or six months ago. that's glacial that will have an impact over time, but what happened to the great resignation theme? what happened to that? i'll tell you what took care of that and that's all people talked about last year was the great resignation theme while the bear market and equities took care of that because these people over the age of 50 that thought they could retire on the 401(k) nest egg now realize they can. >> oh, man, are you talking the truth! so one of the things that happened on the number today was that male participation rate for people above 50, people like me. the participation rate shot up and there's a correlation between the participation rate for males and what the equity market is doing.
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so there are some things happening -- >> -- to go back to the workplace because gas costs more, groceries cost more, rent costs more so even the freedom for them to stay at home and take care of their children may not be there >> the numbers have changed. the behaviors in households and markets. david, thank you very much we appreciate your time today. >> have a great long weekend. >> you, too. thanks for the fresh insight on the jobs report maybe not so goldilocks after all our coverage of the markets continues and we'll focus consumer-related names this afternoon. more "power lunch" is ahead. the dow off 24and w o6 itasff well more than 300 at one point earlier today. mornings are our time,
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>> welcome back. a consumer discretionary sector down almost a percent this afternoon, led lower by the likes of starbucks, tesla, carmax that brings us to the final installment of the week-long series "power lunch" cookbook when we look at restaurant stocks and for that we welcome back nick. investors are certainly ch chastened and a little bit concerned about the economic future how about people going to eat out, restaurant patrons? >> thanks for having me, tyler
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>> you're welcome. >> we see transactions drop in the first part of july since the first half of july we've seen transactions accelerate, and so you know, it seems like as of now people are going out and they're going out because gas prices are down, because employment is still very healthy and the lowest income consumer is actually getting the kind of wage increases that are exceeding expectation. >> so the business is healthy. your picks are the ones you like best out of the coverage universe include wendy's, denny's, diamond brands and wingstop why those? >> there are different reasons for each essentially those are relative third growth rates and the most undervalued right now. wendy's, there's a big dislocation going on because of the e. coli worries and the news came out a couple of weeks ago
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and they were very quick to address it, and i think it will be contained and there's probably a 15%, 20% dislocation within share price, within the last couple of weeks just because of the e. coli news. >> wingstop is the best growth story within restaurants you know, the 30 is since very high in the current environment and just for context, mcdonald's commands a 20 and 18, with the multiple down to 20 and the ebitda multiple and wingstop is two to three times the growth rates of those names soespecially within the smalle cap and mid-cap space there are big dislocations within restaurants right now. >> nick, i'm curious we heard that some of the supply chain issues have begun easing and for restaurants in particular, what are the big headwinds going into fall? >> we certainly have seen supply chain headwinds ease and we've seen essentially margins trough either in q2 or q3
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they will trough in q3 the biggest headwind is just the direction of the declines in terms of food costs and labor inflation stabilizes so the argument is mid-to-high single digits in terms of labor inflation exiting q4 and hopefully we start to see by the first half of next year, mid-single digits in terms of labor inflation and by q2 of next year, hopefully we start to see the commodity costs which have been up high teens, 20% year over year this year and hope hopefully we start to see those flatten out. >> generally speaking, have restaurants been able to find the employees that they need is the labor crunch easing somewhat >> the labor crunch is easing, but it's still very much there, and so you know, from we have been hearing about layoff and it has to be an attack and the biotech sectors and lending and real estate et cetera and those
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are median incomes or higher within the unskilled labor population, there's still a very, very big need and they've been back from covid >> nick, thank you very much we appreciate your time today. >> thank you for having me >> further ahead on the program, investors jumping ark. kathy woods having a tough month. we will trade it in three-stock lunch. there you go ark, ark, ark. power lunch will be right back
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>> time now for our weekly etf tracker. very interesting this week we focus on metals etfs which say $700 million of outflows were had this week the strong dollar and rising separates having a macro impact there and the latest covid lockdown in china raising demand concerns now look at the performance of of a few specific funds. big gains today for some, but look at the red numbers for the week,still down, spdr metals and mining, and i shares global metal and mining down 7%
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vaneck gold miners up 4% for the week and all of them higher by varying degrees today. the data come from our partners at track insight for more information you can find it available on the ft wilshire etf hub let's get to seema mody now. she's got our news update this hour >> tyler, good afternoon president biden is celebrating this morning's jobs numbers. the unemployment rate rising 0.2% to 3.7% in august the 315,000 new jobs were created. >> bottom line is jobs are up, wages are up, people are back to work and we're seeing some signs that inflation may be, may be -- i'm not going to over promise you, may be beginning to ease. america has good news going into labor day weekend. john podesta is being named to oversee the $370 billion in clean energy spending provided by the democrats' new climate law. he was in charge of climate
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policy in the obama administration and was in hillary clinton's 2016 presidential campaign. in central ohio here's the enormous corn maze, the shoe short for horseshoe estimated time to complete the maze, 15 to 20 minutes contessa, you'd be faster than that you're so start. >> thank you flattery gets you everywhere seema knows me so well thank you. >> ahead on "power lunch." the s&p 500 had been up 52 points at the high now take a look at this. down -- you've got the dow down 206 points and off .65 of a percent and i want to take you -- you know i love the casino names, here they are. mgm bucking the trend and you have the wynn up a percent and a third and penn, and other comparable names draftkings are
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down 4% on the day and not everybody bucking this downward trend, but certainly these three names are. we'll be right back.
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huge reversal here from what was a big rally following the jobs report this morning. now the dow jones off 237 points let's get right to bob pisani at the new york stock exchange. bob, talk to me about what sparked the sell-off >> well, was there no big macro news and gazprom was saying that the nord stream pipeline was shut down 37 and keeping disruption alive and to keep people guessing what was going on with the natural gas situation. natural gas did rise a little bit and we were just off a 14-year high on that gas that's been moderating in the last couple of weeks and a little blip up in the middle of the day. i want to show you the s&p 500 because contessa has that and
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essentially, and actually 70 points and we were up 40 now down 30. oil's trying to get some of its mojo back and it didn't move on the headlines and oil is in a bit of a downtrend and it is up $87 and energy stocks are holding up well overall. they've been on the downtrend because there are perceptions that global demand will be lower, but today they've been bouncing back and really haven't moved down that much despite this news in the middle of the day. earlier on were bank stocks and banks were having a terrible month or so and they're down almost 10% they're to the upside and well off of the highs from earlier in the day and it doesn't negate
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the central point of the jobs report and that was a step in the right direction and we've got slower job growth. we've got wage growths adding to the peak inflation story and this whole idea is still gaining traction overall and the cpi on september 13th will be the next important data point, along, contessa, with the conference season that starts next week and we'll get an update on where dozens of companies are in the last two months and july and september things will change a lot and we'll get an update on how the business is doing starting the day after labor day. >> okay. we're pointing out we're off the lows and still the dow off 200 points thank you for that let's go to the bond market. yields had a big jump this week and retreating today rick santelli, tell me what's going on in the bond market. >> yes contessa, to that end, let's look at a week to date chart of the two-year note yield and you can see on the far right,
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today's activity, yields move down what's notable, not that we're down ten basis points on the day at 340 which we are, but the fact is that we are unchanged on the week that's a big deal. especially when you go to the long end look at the week to date of tens on the far right we had the same amount of volatility and it was a mixed job report, but in the end, labor force participation going up, bringing people back in does raise the unemployment rate, but it's a good thing, truly it is. as you see at 320 on a yield of tens we were down five on the day and we're still up 16 basis points on the week and the twos and the tens were the least inverted since the end of july now that news of 12:18ish eastern gazprom changed everything look at the foreign exchange market and the intro of the euro versus the dollar and it pulled the rug out from underneath it
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and what's the other european currency and the uk, the pound, we think they're already in a recession. common denominator, energy look at the intraday, the pound versus the dollar, down, down, down this is something to pay attention to when we see foreign exchange markets get that excited without a doubt the energy or lack thereof or putin or the lack thereof of any semblance of class on his part as europe faces the shortage of gas which will be the biggest story of the year especially when it gets cold contessa back to you, and i hope you have a nice week >> thank you for that. gazprom pipeline news having an effect on the markets broadly and brian sullivan has his finger on gazprom. >> when you are on the verge of an all-out energy price war. this is what you will get, the market's on edge gazprom which shut town the nord
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stream pipeline for three days for, quote, maintenance now saying that the pipeline is going to be shut down indefinitely there are a few other smaller pipes that are cut back on, as well germany is ahead of schedule for the storage for the winter and remember, their storage levels continued with continued pipeline flows and norway is helping out and this is a big blow russia responding and the news happening a couple of hours ago and the united states exploring a price gap on russian oil and energy prices are too high this will be the tool in the tool box to help fight energy price spikes given the war others disagree. i want to remind our audience that back in july, j.p. morgan chase came out with an analyst note and suggested that if there was a price cap and russia responds by taking barrels off the market that they had another $380 a barrel is not out of the question if we get an all-out oil price war.
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opec meeting on monday and the markets are closed so the opec does, they may actually cut production we'll see what happens the next 24 to 72 hours are going to be pretty intense in the world for price of energy, guys. >> thank you for that. appreciate it. starbucks to name a new ceo for howard schultz lots of changes and issues for this new boss. kate rogers joins us now did you know a big character howard schulz is here. what are people telling you about the prospects for the new ceo to come in and take over for someone who has had such vision for this company it will be joining as incoming ceo as october 1st and he was the ceo of record ben kieser and they make directs and airwick and many other brands and he was the global cco at pepsico. schultz will be staying on as interim ceo until april 1, 2023,
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and he will serve as adviser while remaining on the starbucks board of directors so he's not fully stepping away. the market dealing with impacts on the pandemic with china and the changing consumer in the u.s. and the union fight with workers at more than the 200,000 cafes across the country the international markets were key for this hire. analystses have been weighing in and andrew charles at cowan said while they were surprised that starbucks chose the successor outside the discretionary sector, the global perspectives as ceo of a public multinational corporation and background in beverages and pepsico will serve starbucks well into the next chapter. i spoke to andy bearish and saying that his leadership style is he understands the importance of investing in people behind the scenes and those would be the partners at starbucks and that should align well with what howard schultz is focusing on which is the reimagining of the
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future part of that being store safety and of course, the partner experience as the company continues to stare down that union fight back over to you >> kate, thank you very much up next, more on this dramatic market turn we'll take you through the names making the biggest moves especially names in the industrial space we will be right back on a very volatile day in the markets. okay season 6! aw... this'll take forev—or not. do i just focus on when things don't work, and not appreciate when they do?
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the stock is down 14% in a month. only salesforce down more over that time among the dow stocks and seema mody now on 3m >> so, tyler, as the dollar strengthens, we've seen the broader industrial sector come
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under pressure airlines are down on the week as well as oil prices remain a bit volatile so you can see here, delta, american down 3% to 5% but as you mentioned one of the key laggards in the industrial space is 3m hinting at future job losses in a memo to employees earlier this week and also dealing with the setback in the litigation with the bankruptcy court declining chapter 11 protections with 3m and those two factors are weighing on the stock and just to put things into% pktsive and it's on pace for the longest weekly losing streak since june and hitting its lowest levels since march 2020 trading at 122 a share, guys. back to you. >> seema, thank you for bringing that to us >> you have all of the major indices and the dow jones off by more than half a percent you have the s&p down.75%. still to come. kathie woods top holding and a lot of the investors seem to be ditching the growth veorinsts
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fund would you do the same? we'll trade them in today's three-stock lunch. with ge profile smarter wash technology. more care for your cashmere. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪ this is smarter cleaning. this is ge profile.
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cathie wood's flagship etf seeing $8 million in outflows in the month of august, that's the
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highest since september of 2021. that etf is down 55% this year as its top holdings plunge from their year highs tess is down third 30% from its high roku down 85% from its high and zoom coming off one of its worst months early let's bring in matt maile to trade these names. why don't we start with tesla. phil lebeau was on the program last night and said nobody wants sedans anymore, but they're selling a lot of tesla sedans. >> they are, tyler and the thing is the production -- it was just a few years ago we were going they're only make like 15,000 cars they're going to produce 2 million next year. and so that's definitely a positive so it's more of a hold for me than a sell. if you own the stock, i'm not saying to sell it. i do worry what's going on with
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elon musk and this whole twitter thing. it's a self-inflicted wound but he does have to deal with it and that's creating some problems. you had david rosenberg on earlier. i think we're headed for a recession if not already in one. that's tough for car sales and they do have expensive cars so that's going to be a little tougher there. the stock is still expensive if we're headed to recession, we'll probably test the june lows and i think we will some of these big cap names i'm afraid will take it on the chin once again you'll get a better opportunity to buy it six to nine months from now. >> share your perspective here on roku, which was a pandemic darling, really. >> yeah, the one thing with -- again, we're worried about a recession here one of the things that people seem to be complaining about and rightfully so, i know we do it, we're loaded to the gills with
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all these streaming services do we really need another one, especially where we add hardware so that's going to be tough for roku to pick up the market share or regain their market share going forward. another thing, though, is also advertising during recessions. that tends to go down. like it is with tesla, another stock like tyler said down 85% i think you'll be able to buy it a little cheaper i'm not saying oh, my gosh, this thing is going to zero or they're going out of business because i do think what they're doing with walmart, kroger, some of these combinations and what they're doing with new innovation into the advertising area will allow them when we come out of the recession to really build on what they have built during the lockdowns it will be a much better company at that point but three, six months from now you'll get a better opportunity to buy it. >> speaking of pandemic darlings, there is no name more associated with that than zoom
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but here is a company that, a, actually makes money and is trading at what one might say is a reasonable variable of 22 times forward earnings >> exactly, tyler. i'm afraid a lot of these stocks in the ark fund don't make money. most of them don't so this is a good valuation. again, it's 22 times earnings. it was trading at 170 times earnings less than a year ago so it's really come down to become attractive i also think one of the things that they have some of the things that businesses that are hard to develop like zoom phone. i mean i can't tell you how many times i've been on a conference call tyler, we were on conference calls for 30 years and they never got any better until the last year or so with this zoom call this is really a much higher quality thing. even though people are coming back to work, there's still going to be plenty who stay at home on certain days so i think this is going to be one people will be surprised can
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really come back in the second half of this year and the years ahead. >> so it's a buy for you >> yes. >> matt, thank you have a great weekend after the break, meta making a big deal today furthering its metaverse ambitions. the stock fell 3% so far we'll have more on that when "power lunch" coins.ntue 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
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welcome back to "power lunch," everybody. stocks lower today and well off the highs of this morning. communication services the worst performing sector this day we bring in julia boorstin for more hi, julia. >> well, tyler, amid the tech sell-off today, meta shares are underperforming. they're down about 3%. this of course comes as today meta and qualcomm announced they're teaming up to develop custom chips for meta's br products but this does show meta's dependence on qualcomm and its inability to develop its own chips. meta shares down over 3% qualcomm was up earlier, now those shares down about %. meta is not the only social stock selling off. we see that snap shares are down nearly 3.5%, giving up some gains over the past two days pinterest down nearly 3% twitter down less than half a percent. looking over the media space,
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comcast shares underperforming the broader market those shares up nearly 3%. also underperforming, paramount global down 2% warner brothers discovery pretty much flat and disney down about 1% now, switching gears and looking over at the streaming space, we see that endeavor is in the green. the streamers are mixed. roku shares are down about 4%. netflix is down the least of the group, down about 1.5% tyler. >> all right, julia, a lot of business and a lot of action in that sector today. have a great weekend as we head to the closing bell, let's run you through where the markets are right now as we head into what could be a very busy final hour the dow is off 282 points. there's the nasdaq down 147 and the zmd off about 1% or 37 points so you're looking at roughly sort of median decline here in the 1% neighborhood. >> we are seeing some bright spots in the market, especially
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in the energy names. hess, halliburton, cf industries on the flip side you've got dinner, zebra and generac down about 4% on the day. >> the biggest moment of the hour for me, brian sullivan saying this weekend could be very interesting for energy prices, watch that thank you for watching "power lunch. >> and now "closing bell." stocks give up a big early rally and we're selling off into the close. the dow had been up nearly 400 before reversing lower the most important hour of the trading day starts right now welcome to "closing bell." i'm carl quintanilla in for sara eisen. 1% losses or close to it as it shifts from the jobs number to energy s&p down almost a full percent biggest decliners on the week, a lot of companies that warned in recent days. among them nvidia, pvh and seagate. coming up on the show, dan


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