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tv   Power Lunch  CNBC  September 26, 2022 2:00pm-3:00pm EDT

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car lot looks full i don't know what's going on i'm going to drive that 2010 jeep wrangler until it croaks, my friend. i'm going to keep going with it. it's got rollup windows, six miles to the gallon. phil lebeau, appreciate it. that does it for us on "the exchange," i'll see you at 6:00 p.m. for the fed factor special. in the meantime, "power lunch" starts right now rollup windows, my son wouldn't know what to do with them welcome to "power lunch" along with contessa brewer, i'm tyler mathisen what tina to tara, there are reasonable alternatives. you just need to know where in the bond market to look to find the biggest rewards with the least amount of risk we'll show you where they are. and the popular buy the dip trade. remember how that worked over the last few years it's backfiring now but it's not stopping investors from pouring
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in this hour a strategy in stock picks to help ride out, contessa, the volatility. >> hello, tyler. hello, everybody yields rising, the dollar surging, stocks have given up all of their earlier gain. the dow down as much as 429, now down 1.3%. the s&p off 1.2% the nasdaq composite down 0.50%. the nas dabl dak was up 4.1% at the high the treasury yields, two-year, highest, yielding 4.35 ten-year hitting 3.9%. the dollar index at a multidecade high the british pound falling to a record low against the greenback. the dollar index up 0.92%. tyler? >> thanks very much, contessa. let's see where we are because we don't have the prompter
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the current macro environment is difficult to figure out, but our next guest says you have to respect it, tread a little carefully and stay fully invested for more, let's welcome in jason ware from albion financial good to see you. you say recession is coming in '23, but don't get too grim about it >> good to be with you, tyler. i think for long-term investors you have to think and act accordingly. you want to own good companies, be diversified and understand what your time horizon is, your risk is and long-term goals. a recession in 2023 is not going to -- or should not kick you off of that track. however, you do have to respect the macro environment. we have a recession coming we have a fed that is continuing to push forward on raising interest rates we have inflation that has been stubborn and problematic and until those things change, it's going to be a volatile ride with a downside bias in the
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coming months. so, you want to adjust the portfolio to optimize for behavior the smoother the ride, the more likely you are to stay the course and reach those longer term goals. >> how do i adjust my portfolio with those three big things? i look at three things here and they couldn't get more ominous one, inflation in rising rates two, the prospect of a recession. three, war in europe. >> right that's why the market has benneteaubeen tumultuous the way you can hide out is an overused term on wall street the way you can position itself for the next 12 months so you can respect that longer term is to own, first of all, quality. you want great companies that have low cash profiles, wide moats, good management teams you can find that in large cap health care, large cap consumer growth stories
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also tilt portfolio defensive. low volatility is a factor one of the best places to hide out to protect the downside, ie, remove beta as things get a little more choppy here. we're doing that with lbhd, a diversified low volatility etf that also pays an above market dividend around 3% >> jason, thanks very much we appreciate your time today and your investment ideas. continue to do well. thank you. we'll see you soon. >> yes, we investors, we are fickle lovers. we're moving from tina to tara tina, there is no alternative. tara, there are reasonable alternatives look at fixed income bond yields spiking. our next guest is betting big on short-term yields as the fed continues to raise rates maria from circle wealth management i never thought i would be sitting here talking about how
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bonds might be sexy but they look very attractive. >> agree after 15 years of having no income in the word fixed income, income is back and you don't have to go out too far to get an attractive return in fixed income right now >> where are you looking specifically what's appealing to you if you want to get attractive returns >> we're liking every area of one to two years, where you can get 1.4% high yield where if you go out three to four years you'll be able to get close to 7%. bank loans where you can stay basically inside a year and you're getting about 7%. investment grade corporates you can get close to 5% in two years. regardless of where you are based on your tax situation, staying short, can you find some really attractive alternatives to stocks right now. >> can you talk a little bit about the corporate bonds. what are you looking for in quality corporate bonds?
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are there certain criteria >> yes we don't like high quality corporate bonds right now because they really trade on interest rates at the end of the day, if credit starts to widen because there's concerns of a recession, you might end up seeing the high quality bonds get hurt the most. so, in essence, we really do like corporates, but would prefer to be in the high yield part of the market, especially the higher quality bbbs, bbs, where you're still getting paid quite a bit and the risk of credit is not as big. >> if i want to play it safe and i look at the two-year treasury moat and i see it at 4.3%, whatever it is, something like that. >> 4.3. >> 4.3%. i go, that's a pretty good return for two years, i'd like to lock that up. will you recommend me doing that or do you think there's still a risk that that yield could go higher and that i would lose my
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principle? if i'm just going to buy and hold that two-year note, i don't care what the principle value does intermediately. >> that's right. there's an opportunity cost, but you're right if you're going to buy and hold, i actually like the one more than the two-year because you can lock 4.1% and stay in a short of a year. so either one or two years if you're not going to sell, they represent very good value at this point. >> a one-year t-note would be a good place to go, you think? >> yes we like that very much even inside of a year, you can still get almost 4% by being out six months so, short, high-quality treasuries represent a very good place for nervous investors who want to have flexibility and the ability to, perhaps, pivot as markets go lower and redeploy cash >> what about the fed, i mean, there's all sorts of speculation right now about whether we're going to see them slow down on these rising rates or if they're going full steam ahead
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what's your take >> i think they're going to go full steam ahead the fed is not going to stop until wages slow down. the risk that central banks -- over 80% of the major central banks are increasing rates because they cannot afford to have inflation expectations get out of control so, i think they're going to continue and they're going to continue aggressively until they see labor cool off >> maria, it's great of you to join us. thank you so much. >> thank you for having me. coming up, bad time to buy the dip. why this popular strategy is backfiring and what it says about the direction of the market plus, a stock draft update stephanie's meta pick is down. chevron down 12% she's going to talk about her picks and give us another name to consider if she were picking right now. first, the real estate sector, the biggest laggard today followed by duke realty, and
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pimco. real estate the worst performing sector so far in september more power to you in two
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there you see the dow down about 300 points down 400 earlier let's look at planet fitness, outperforming as raymond james upgrades the stock strong. calling the business model resilient and recession resistant, arguing it has no interest rate risk and few near-term debt maturities of the 18 analysts tracked, almost 90% have it a buy according to raymond james. trades 30% below its annual analyst target and 33% from the all-time high last november. there you see planet fitness as people return to gyms. the flip side of that is, obviously, the gain of planet fitness, the pain of peloton. >> it's so interesting the way we've seen peloton stock crumble as people leave their attics and
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basements and return to a more social setting for their fitness. and planet fitness is an interesting business model because they charge so little. it's a no-frilz gym for those that don't know it you go in and have a very modest monthly fee, which people forget about. >> probably more modest than what i pay for my peloton fee. >> yeah, at home. >> yeah, at home >> i like my peloton that's okay. i like it. it's all right during big selloffs retailers tend to buy the dip but this year's extended downturn has put a dent in that popular strategy making 2022 the worst year for buying stock market dips since 1931, i believe. cnbc contributor from "the wall street journal" is out with a new piece examining the age-old strategy, which remains popular despite recent losses. are people still chasing the dips >> it looks like they are.
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buy the dip, one of the most popular strategies of the past few years. even since the last financial crisis has retained its popularity this year during this month-long selloff that has now dragged the s&p 500 down more than 20% individual investors do seem to be hanging on. they do seem to be buying more when the s&p 500 declines than when it's rising, though many are being tested by the incredible downturn. it's been painful, to say the least. >> it certainly has been i think people got accustomed to or spoiled by the idea that whenever the stock market went down temporarily, it was pretty soon going to -- over the last decade, it was pretty soon going to snap back and then go higher than it was, and then it was going to go higher than it was that works until it doesn't. right now it doesn't seem to be working because the steps are not going higher the steps seem to be going lower
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as we broke last week through those june lows. >> that's right. you know, it's been the worst year for buying the stock market dip since 1931 the second worst year on record. and look, the past few years, it kind of just seemed like stocks would keep going up and up and up so many people just felt really rich, right, because they did buy on those dips. then the stock market shot up immediately and one individual investor i spoke with said, look, i got greedy i thought it would be so easy to turn my brokerage account into 100k brokerage account i thought i would be able to pay for my daughter's college education through the stock market, shielding them from loans because it just seems so easy for a few years that has not been the environment at all and i think just zooming out, this shows you how much the market has changed this year with higher bond yields and tumbling stock prices. >> you know, i just heard from a
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source this weekend. the same thing looking at these historic inflows of equity, especially these retail investors, nonprofessionals going in and buying the dips, but conventional wisdom, as tyler pointed out, is what they're going by they watch cnbc all day. this has been the message they're hearing. are you starting to see cracks in the theories there might be some room for some nervousness over the stock market and where it's heading >> there's definitely a lot of nervousness out there, especially among the individual investors i spoke with and many realized, look, these trades i piled into, for example, day trading, buying the ark innovation etf, a lot of those trades that worked the past two years are no longer working. even though we are seeing individual investors buy the dip to some degree this year, that doesn't mean they're not anxious about it that doesn't mean there hasn't been other shifts in behavior.
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for example, intraday trading individual investors hit the lowest level since january 2022. before the onset of the pandemic, that drew millions of new investors into markets. >> we just show them infloes -- people piling into the ark net inflows into equity funds are actually up for much of the rising times in the market, the infloes were actually negative they weren't inflows and i wish ron were here, maybe you know it as well, but remember, i happily only remember a very little part of this, between 1929, when the market cracked in 1929, it did not get above its pre-crash high for something like -- till 1954 or something like that, the year i was born i'm telling you, these downturns can last a long, long time, and it is not necessarily a given
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that the market is going to go back and take out the all-time high that we set at the first of this year. just saying. >> it seems downright impossible to say right now and to even predict right now, but i think that is one big shift this year, right? suddenly investors have someplace else to place their cash take a look at the two-year treasury yield, the ten-year treasury yield ultrasafe government bonds look attractive for the first time in years. real yields are edging higher. it really puts a dent in that tina trade that carried markets the past few years no one knows how long this is going to last but one thing is for sure, it's incredibly different from other selloffs we've had in recent years. >> the other thing we have seen is this really frothy excitement over cryptos, over meme stocks if you're a new investor and that's what you're paying attention to, boy, have you been soarly disappointed in the last
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couple of months are you getting the sense when you talk to retail investors, that they're looking at some other big names? meta is way off its year-to-date highs. it's year-to-date lows if you're looking at some of these bigger names that might be familiar to retail investors, are they starting to see the amazons of the world, the metas of the world as safe bets? >> one thing that's really fascinating is that the faang trade has started to show crack this is year those stocks are underperforming the broader market one trend i've observed and that's come up repeatedly in my conversation with individual investors is they still tend to hang onto those faang stocks many institutional investors in the broader market has kind of soured on those names. and another fascinating aspect is that even though, you know, meme stocks have tumbled this
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year, that frothiness isn't there, it does seem to come back from time to time. for example, last wednesday the ark innovation etf recorded its biggest one day of inflows since june or july while the broader market was tumbling i think some of those old habits are dying hard right now >> so good to have you here. thank you. >> thank you after the break, macaw casino stocks are surging today. china is ready to start permitting tour groups back into the gambling hub for the first time in nearly three years we'll move through these moves next. it's not a straight flush for china. the country facing a major blow as apple moves manufacturing to india. details on that story. before the break, a reminder, cnbc's delivering alpha returns in person this week yea! you can scan the qr code on your screen or go to if you're listening on the radio
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and register there we will be right back.
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macaw casino stocks moving
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higher sharply after they will issue visa electronically and lifting covid restrictions melco traded here up 30% las vegas sands up 12% wynn up 12.5% as well. mgm up half a percentage point they rely far less heavily on its revenue from macaw than the others for the first eight months of this year, official figures show tourism off 86% from pre-pandemic levels. but now we're getting this announcement, the loosening of covid travel requirements and the top tourism official says he anticipates macaw could seen between 20,000 and 40,000 visitors daily as soon as october 1st, which is a holiday there. pre-pandemic levels though, tyler, the daily average was 113,000 visitors so, you're seeing like, great, you're making progress off what it was earlier this year when you had visitation - >> you're still a third of where you were.
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>> there is just no clear-cut path forward for macaw until they open these restrictions right now, they're still maintaining the quarantine requirements for international visitors they have to stay for a week in hotels to quarantine. >> how big a convention and business destination is it >> not that much but they're trying to change that. >> not as much as las vegas. >> we've seen singapore become a hot des hotdestination for big expos and conventions and meetings macaw's they are starting to look at the convention and meeting space as an opportunity. they're starting to look at are there other entertainment possibilities, like should there
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be a theme park in macao when people come like las vegas, yes, grandma can gamble but you also have things for children to do and a more diversified economy. >> interesting stuff. let's get to bertha coombs with our cnbc news update. >> here's what's happening at this hour. former u.s. secretary security contractor edward snowden has been granted russian citizenship. snowdon has been living in russia since 2013 to escape prosecution in the u.s. for having leaked secrets about american surveillance programs. in rio three people have died during a police operation against drug gangs traffic on some main roads ground to a halt as commuters reportedly left their cars to take cover from bullets flying overhead. and back here at the white house, president biden welcomed the atlanta braves to celebrate their world series win from last year he called their come-from-behind
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victory one of history's greatest turn-arounds. >> you made the playoffs and beat the brewers and dodgers, and then you beat the astros to win it all, forever known as the upset kings of october >> well, looks like they may be headed back to the playoffs for another chance at maybe winning another series back over to you, tyler. >> they are extremely good they've been neck and neck with the mets all summer long the mets have had them by about a game we shall see they'll both be in the playoffs. ahead on "power lunch," the energy trade losing some steam nat gas down 25% this month on recession fears. and big oil firms like chevron losing their gains from earlier this year. that name, along with meta dragging down stephanie's pick. >> has to be a bummer for stephanie. here 2022 stock draft porfolio,
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david robinson is in the lead thanks to chipotle and rivian.
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trading day. we to want get you caught up on the market, stocks, bonds and commodities and the plunge in natural gas prices let's begin with bob pisani at the new york stock exchange where stocks remain under pressure. >> we were doing fine until about noon and that's when the ten-year yield, all the treasury yields started moving to the upside 20 basis points today in the ten-year that's enough to really hurt stocks here. two sectors are hitting new lows here expansion of new lows like we saw on friday. financials and technology, citigroup had a new low, regional -- super regionals like u.s. bank corp and credit cards, mastercard, visa visa is about to crack 180 visa was 206 about two weeks ago. we're talking 12 or 13% down in visa in just the last 12, 13 days the other big group is big cap tech hitting new lows. intel is almost every day.
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advance micro, service now, meta, adobe, oracle. the list is getting longer here, similar to what happened on friday one group that's been sitting in the new low list for weeks now is the transports on the fedex news a couple of weeks ago u.p.s., southwest, norfolk southern, csx at 52-week lows. any bright spots out there the mortal words of john bea belushi, i'd start drinking heavily. keurig up, starbucks up, constellation, that's jack daniels. >> the two-year is trading at its highest level since 2007, near 4.3% yield at this point. the ten-year yield, look at this, session high right now of
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3.9%, it has not closed at 4% or more since october 2008. oil closing just up 2% for the year it was up 70% year-to-date in march. the cnbc commodity desk for us, hi, pippa. >> what a turn-around it's been for oil. sinking once again today with wti hitting its lowest level since january 4th. this is after the contracts posted a fourth straight week of losses the longest weekly losing streak of the year. now, the major driver of today's action is the strengthing dollar this impacts oil since it's priced in dollars making it more expensive for foreign buyers the currency volatility isn't likely to slow any time soon, which means oil will be on a, quote, very long roller coaster ride let's check on closing prices here wti down 2.5% at 76.69 brent crude around $84 for a
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loss of 2.5% energy stocks are falling today alongside the restof the market the sector is down about 2.1%, but it is holding up better than some other groups. haliburton and baker hughes are the biggest losers turning to natural gas, it is in the green and well off the worst levels of the ay, which saw it down more than 4%. over in europe, prices falling today and now down more than 40% in the last month. con tess sna. >> that's a big decline. thank you for that. nor more on the reversal in the nat gas prices and whether further declines are ahead, let's bring in bill perkins with skyler capital, ceo and head trader what's behind the decline? >> i think basically global macro. you have the fed basically dropping the hammer on assets and we had a very tight market,
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supply was growing there was concern, would we have enough in storage for the winter those concerns have eased a bit and that led to a selloff. >> if average monthly production this year has exceeded all other years, how is demand matching up with that? are we going to see lower prices here in the united states? normally we use the natural gas we produce are we going to see that lead to lower heating bills? >> you would think so, except we also export a lot of gas to our neighbors in europe who need it. there's a supply dus rupgs with a little thing called the ukrainian war going on right now. that is where we see a commensurate increase. we're tightly balanced any kind of upsetting of the apple cart one way or the other will lead to wild price swings we were pretty high in prices and then we saw that demand was starting to back off and prices
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have come much farther count to earth. we are heading into winter so you have to be careful the mean and the median, they are wildly divergent that means the average price is very high but the favorite price is lower we have to price in the case where we have a cold winter and prices go to $50. >> we are really getting into the height of the atlantic hurricane season we've started to see a lot more activity keeping an eye on ian heading towards florida. give me a sense of how that might influence natural gas and what we're seeing with the price declines >> in the old days a hurricane was a bullish event because it would knock off more supply than demand nowadays, a hurricane in the gulf is a decidedly bearish impact it destroys demand, we have power outages and we also stop the exporting of lng if we had it further in the gulf, it would be very bearish right now it's mildly bearish by
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knocking off some florida demand for some period of time and cooling down the temperatures. things have changed in the last ten years. any type of hurricane in the gulf is bearish u.s., generally, and bullish europe. >> i'm going to ask maybe a naive question here. if i'm a consumer in the united states or europe, and i would like to see prices come down so i'm not walloped when my heating bills come out this winter or my driving charges go down, should i be rooting for a recession that would take some demand out of the equation? >> i think it depends on how stable your job is in that recession. it's kind of hard to root for economic pain. but what you really should be rooting for is investment in supply and growth of supply for stable prices. a recession would be nice in the short term but who are you going to go on vacation with when your neighbors are out of work? >> but obviously increasing supply is going to run up
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against dose mestically and globally against those who oppose the expansion of fossil fuels. >> it's a great time to be a trader maybe not such a great time to be a consumer because you have so much opposition to anything that increases the stability of prices mainly more supply >> are there particular companies, particular stocks in this space that you like, bill >> i really like distribution a little -- midstream companies. energy transfer might be one of them i have to put up a disclaim. i'm long energy transfer i like it because they have long-term fixed contracts. gas needs to be moved through the piles. oil needs to be moved through the pipes and this isn't going away for some time they're not as exposed to the wild price fluctuations on a day-to-day basis maybe 10% of their earnings are. as we've grown the permian, as
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we bring on new supply, it has to be transported, soy really like companies that are a little more stable and insulated from the volatility i'm already in the volatility game, so why do i need -- i'm already chopping up in the most volatility market there is. >> tap dancing back and forth. >> yeah. you know, rooting for a recession might be like rooting for war. the profiteers do it you might root for it if you're personally going to -- >> profit from it. >> to your point, tyler. bill perkins, appreciate you being here >> thank you for having me. up next, king dollar versus the tech titans. mega . as we head to the break, throughout hispanic heritage month we celebrate our cnbc teammates and contributors here is cnbc associate producer karenna hernandez. >> i'm a first generation
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mexican american and i'm so proud of that. the reason i am where i am today is because of the sacrifices my parents made to move to this country to provide a better future for my sister and me. it's those sacrifices that give me the drive to excel in my career and make their sacrifices worth it my advice to other latinas is give it all you've got and d't it for others to take chance on you put yourself out there and take a chance on yourself first
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welcome back to "power lunch. costco is actually in positive territory today despite a price target cut by analysts over at raymond james. now, the firm did reiterate a buy rating on the stock, but those gains come as some investors and analysts speculate over and when the wholesale retailer will raise its membership fees with analysts at guggenheim predicting it will come some time in the spring costco chief financial officer said on the earnings call just this last week that it's a question of when not if the club will raise membership prices nonetheless, those costco shares up 3% on the day
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ty, back over to you. >> dom, thank you, sir. tech stocks coming off their worst two-week stretch since the pandemic and the strengthening dollar causing some tech titans to make changes. steve kovacs has a breakdown of the move as we head into the fourth quarter steve, a lot of these big tech companies this do a lot of business overseas, they could get nicked a little bit. >> that's right, tyler they have huge revenue exposure overseas let's break them down name by name, starting with apple. we know how apple is combating these foreign headwind they've raised products on a lot of products. the new iphone 14 line in the eu will cost 100 euro more than last year's iphone 13 cost on the app store starting next month, apps will get more expensive. all of this is to combat foreign exchange inflation meta raises prices on virtual reality headsets and the cfo warning on the last earnings report that, look, revenue will
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get hit in its metaverse division by 6% or so because of these headwinds. microsoft, on the other hand, already saw its earnings whacked a bit last quarter because of foreign exchange headwinds, shaving six cents off eps and it's only expected to get worse as the year continues. although cfo amy hood of microsoft saying things will improve in the first half of calendar year 2023 on the amazon front and alphabet, mixed signals from those two. there's some downturn on the advertising side but amazon says it's able to project its profits a little better but the foreign exchange will hurt revenue we're just on the cusp of earnings season, so we'll get a lot more data of what these companies are seeing in the next few weeks. >> well, steve, i'm just curious whether it's mostly the hits are coming from what it costs consumers internationally to buy these products and services from u.s. companies or are there other ways the currency is coming in to play? >> yeah, the other ways are --
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part of it is with the app store. for example, with apple, they're going to have to increase prices there. that's where that comes in what's interesting to me, contessa, how much pricing power do these companies have going into potentially a global recession? are they going to be able to raise prices we'll find out more color from that soon. >> let's talk more about apple, different direction here now making the iphone 14 in india. it's really -- it's not that they haven't made phones in india before, but this is, am i correct, one of the first times if not the first time they've made one of their brand-new signature products in that country. >> yeah, it's a little bit of a mixed bag here, tyler. i was with you guys just this spring saying, hey, look, they're building the new iphone 13 out in india. a good six to nine months after they first released it now they're doing it just a couple weeks after this is a significant move from apple showing, look, we have things in place in india to the
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point where we can almost simultaneously produce a brand-new iphone line at the same time we do it in china. and as we know, this helps protect them a lot from those covid restrictions we've been seeing throughout the country and also, look, tim cook and apple, they've been looking at india for the better part of a decade now trying to figure out how to make that market work for them so many indians can't afford iphones, but what they have discovered is they can do the production there cheaply and on par with china that's a significant move throughout apple supply chain to help them diversify so they're not so reliant on the whims of china. >> that sounds like a smart move, which apple does quite often. steve, thank you very much. >> thank you. still to come, a special edition of three stock lunch we'll check in on the cnbc stock draft. who holds strong amid this market turmoil we'll be right back.
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. welcome back with the bears in control of the market and football season in full swing, i don't know how the bears are doing, we are revisiting our stock draft to see how some of our contestants' portfolios are holding up amid
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the volatility david robinson, the admiral, currently number one -- in fact, he's the only one in the green, up by about 4% and today we're going to start by taking a look at the strongest link stephanie link is currently in sixth place. her portfolio of meta and chevron showing weakness there down about 22% meta down 30% since the draft. stephanie joins us now let's start by going -- listen, steph. you got lots of company here in the negative column. you're not alone at all. ls only one person who has positive returns, obviously it's a matter of timing let's talk about meta a little bit. this stock has been cut up with razor blades lately. >> yeah, it really has i have one winner and one loser. but i still like it, tyler it is down 58% year to date. it trades now at about 11.6
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times earnings, 7 times ebitda and these guys have the size and the scale and the eyeballs that the digital advertisers are looking for in terms of rois, right? so i think they have to fix reels. but i think they will be able to do so and there was speculation last week that they were going to cut 10% in their cost structure which could save them about 6 billion or so. so they have some flexibility there. free cash flow of $20 billion, they have a lot of financial flexibility going forward. >> i was asking a previous guest about this if you have retail investors who are going in, they're sold on the conventional wisdom of buying the dip, meta might look like a familiar product to most retail investors and, two, the fact that it's down so much, it might look like a buying opportunity. >> i really think it is, but i've been saying that, contessa, for the last several months. unfortunately, it's not been a
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great choice i think there's real value they do have size and scale. they have 2 and $3 billion in monthly and daily active users those are real eyeballs, so i think that the -- obviously they're having a slump here. there's a lot they have to deal with but i think this valuation is very compelling. >> you also have conviction about chevron that, you know -- you had some early gains during energy's climb but now it's dragging a bit would you still stick with it? >> yeah, i would the stock is trading at 7.7 times earning and i think the energy industry has changed because of buybacks, dividends and special dividends. these guys raised their buyback program up to 15 billion and their free cash -- even below $80 oil, they're generating 11.2
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per quarter in free cash flow. they have great assets and they have pricing power >> let's end on a hypothetical if the draft were happening today, set aside your two picks, what would be your top pick right now? >> i like cybersecurity, i like palo alto. i don't own it in my portfolio i happen to own fortinet. they're growing total revenues to 20%, product revs at 20%. billings in the upper 30%. a lot of good visibility power the reason i don't own it in my portfolio yet, it's held up remarkably well. if it were to pull back more, that's when i would be buying it. >> thank you very much we appreciate it always great to see you.
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>> thank you. up next, return to work and the cost of childcare. we'll go under the microscope. and a quick look at the nasdaq which made its way back into positive territory the little engine that just can't be stopped we'll be right back after this break.
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welcome back to "power lunch. as workers return to the office, there's a shift under way in
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childcare and dominic chu is back with us. >> these are trends that have started since the pandemic and are only getting just exacerbated at this point. and it comes to the huge cost of childcare in this country. earlier this summer the folks at, a website that a lot of parents use to find care for their kids, did a survey and found out just about the proximate cost of what it costs for nannies. it turns out that the weekly rate versus prepandemic today for a nanny is $694. now the important part is that's up 23% from what it was prepandemic. so $700 a week to have a nanny now when it comes to childcare centers, think of day cares and that sort of thing, it's a much better cost, right, at about $225 per week. a thousand dollars a month it's still a lot of money. but the reason why it's important is because many of the
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people who used to work at childcare centers have now found higher wages, which is good for workers, of course, going to be private nannies. the issue is, you now have a worker shortage at childcare centers because all of the people who used to work there are getting hired as private nannies for more money that's an issue. because most families in america cannot afford to have a private nanny so they send their kids to day care one of the interesting parts about this is they dealt into some of the percentages as to what people are feeling right now. it turns out that even now, 40% of families are finding trouble having a nanny around. they can't even find the people to have the work 39% are having trouble finding help through a childcare center, and 37% are having problems just trying to book a baby-sitter for the weekend or anything else it just goes to show you just how dislocated the labor market has become and what it's going to possibly look like down the line. >> and now you have 15-year-olds
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telling you that you're going to pay $25 an hour just for a couple nights out. >> 25 is good. i'm paying 20 right now and i think it's huge -- >> you pay what the market will bear. >> it's good for workers, i guess. >> i sure is. thank you for watching "power lunch." >> "closing bell" starts right now. the dow and the s&p 500 losing some steam after that failed early rally attempt the nasdaq is making a late-day comeback the most important hour of trading starts right now welcome to "closing bell." the s&p tried to reclaim 3700. the bulls' plans were foiled by hawkish fed speak. we got some pronounced weakness in materials and energy. we're going to talk to rockefeller international chairman about the wild moves we're seeing in currencies and what that means for th


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