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tv   Closing Bell  CNBC  November 21, 2022 3:00pm-4:00pm EST

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people looking for work right now and interestingly because we've seen such a demand for skilled labor, it will be a big turnaround maybe tiktok will have an advantage hiring now. >> thanks for watching "power lunch" now we appreciate it. >> "closing bell" starts right now. >> stocks mostly in the red today as we kick off the holiday trading week with the nasdaq seeing the sharpest pullback now. it's down a full percent this is a make-or-break hour for your money welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand right now in the market. with the ten-year yield a little bit higher today, about 3.85, stocks under pressure, though it's a tale of different sectors. green for consumer staples, industrials having a good day, materials, utilities, real estate, health care financials, all positive what's holding back the market, energy in particular, down 2%. consumer discretionary, technology, that's why you're seeing the pressure right now on
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the nasdaq some of the biggest cap tech names getting hit the hardest, apple, tesla, amazon, alphabet and paypal weighing on that. check out the stock of the day, disney, getting a big lift as bob eiger makes his comeback to the "c "suite. much more about that in a second also ahead, we'll talk to cleveland fed president loretta mester, an exclusive interview to go over what she plans to do at the all-important december fed meeting. first, let get straight to the market and market commentator mike santoli is here what are you watching? as we still go through some fed speak. light on data and earnings. >> yeah, sara, been a similar theme for a week and a half. market going sideways and consolidating the rally we got off the big october low. market seeming more confident. it's got the fed outlook
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somewhat well-priced in terms of where the fed is headed and how fast and the economic overhang is there and the yield curve would suggest that the macro is in question. if we get down to the mid to high 3800, a normal pull pac if we get down in that direction. seasonally things are pretty strong right now a sideways shelf being built on the shelf wanted to hit on disney. such a ride for this company and for this stock for a while right now this goes back five years disney relative to netflix this is the enterprise value relative to cash flow, forward-looking ebitda for both companies, and what you see here, this little bump, by the way, the close of the fox acquisition by disney so the debt went up and the enterprise value went up in that sense, but right here is what's interesting. it's coming out of pandemic. basically the market giving disney a netflix-like valuation for the entire company not just for disney plus streaming. it's real signaling arguably two disney management, spend, spend,
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spend, get subscribers and that's what the game s.then it's down they were at parity for a little while, going right sideways, netflix with disney and then netflix has a recent rebound and disney seemingly a little caught in between sara. >> really interesting, mike. thank you. mike santoli, for that setup for more on bob iger's return led bring in cnbc's david mayber who has long covered 'tis any. this man, the stock. what has led to that >> i think very few people would have anticipated it would mean bob iger's return. not so much surprised that bob chapek was not having an easy go of it due to errors along the way. the board has indicated to me that there had been true concern or heightened concern about his leadership, and that was after this most recent earnings report, a significant miss from
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analyst estimates but even more so just the costs associated with the direct consumer efforts, disney plus, and what seemed to be growing disenchantment at the very top of the company amongst some executives at least with his leadership as well one could have imagine the board picked up on that. maybe you're facing the possibility of certain people choosing to leave, and then they moved very quickly. >> so i also think it's notable that the news came here. obviously the stock is up 6%, warm welcome for bob iger, but we also go that revelation that nelson peltz is in this company building a stake and wants potentially to be on the board and his track rocks you know i covered the b & g story very closely, and there are similarities with disney and p & g in terms of best in brand. >> even in terms of cost as well. >> and cost as well so the idea that there's a sheriff in town here to impose discipline,
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especially if iger does choose to work with him or even they add him to the board it would be a very positive thing. >> possibly. i would say from what i understandel peltz had very little to do, if anything at all -- the board was aware of his presence, and so you have to take that into account, but that said he had nothing to do with chapek leaving and iger coming in that was not having to do anything with or dan loeb, another activist, when was actually in there trying to be supportive of chapek and loeb, of all the arguments that he made when he came with his letter, the sg & a argument is the one that resonated most deeply seemed to with chaek as well when i talked to him because when you look across apples to apples comparison, relative to netflix, netflix is spending more. >> by a lot. >> the margins are much higher. >> correct
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to your point, i think peltz bears watching whether or not he's going to end up with a board seat is very much unclear another shareholder also bears watching is ike perlmutter who sold marvel to disney sometime back, but he's been fairly vocal. he's not on the bore, but he's a very large shareholder you're right at this point if you're iger this is not number one, two or three on the list you're worried about. >> what's number one, two or three? >> first, it's just re-establishing -- >> lowering costs. >> re-establishing morale and really getting people to be off the mystic again because there has been a feeling at the company that that's not been the case, stabilizing things and to your point, organizationally sort of moving forward in terms of what you're thinking about and then from there you sort of take it to operationaled and then maybe, if he's only there really for the two-year period that you say, do you get to strategic, i don't know, but sort focusing on the organization, the operations which would be, of course,
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costs. >> right, because the track record on bob iger, the market really likes him, right? he did some great deals, but there's been criticism also of some of the deals that he did. >> the last one in particular, fox. the fox deal which added a lot of debt. many people said they overpaid for the asset. >> and then they didn't get sky which was very bigger. >> got a big price for sky they were lucky that the department of justice wanted to divest the rsns because the value of those assets has declined dramatically. those are the assets to allow what they say is a fairly robust direct-to-consumer product now the $71 bill crop, remember, they lowered that because of the sales we just mentioned in terms of the overall costs you're right but they have got to figure out -- it's a different world. mike just point it had out, you know everybody was chasing netflix multiples, sara. that's what they wanted. disney was able to accomplish that in part by adding a lot of subs. >> no more. >> that's not the case
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know you've got people don't tell me your sub numbers but your profitability and when you're looking for profitability it's to the that easy to find so far in streaming. >> by the way, should do a better job at succession planning next time around. >> that's a good point. >> that's a question for the board as well. >> it is iger was also though involved in chapek being chosen as his successor and it was not a good choice it would seem, at least. >> david faber, thank you. >> thanks for sticking around so late. >> only for you, sara. >> after the break, we'll be joined exclusively by loretta mester as the market looks for clues about the policy meeting rates. dow down you're watching "closing bell" only on cnbc
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san francisco fed president mary daley saying in prepared remarks today that the fed should be mindful of lags as it tightens rates further this. comes, of course, after raphael bostic from the atlanta fed says over the weekend he favors slowing the pace of rate hikes joining us negotiation conclusively is cleveland fed president and also an fomc investigate member this year, loretta mester great to have you, president mester great to have you back. >> thanks very much. thanks for having me >> so the market investors are obsessed with this idea of the fed slowing down and eventually pause interest rate hikes. how close are we to that >> well, i think we're entering a period now where fed policy,
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the funds rate, is just at entering a restrictive stance, so that's the way i like to think about it we moved rates up very expeditiously. we did four 75-basis point raises in a roll we're up 375 basis points on the year, and right now we're at a point where we're going to enter a restrictive stance of policy, and at that point i think it makes sense that we can slow down a bit the rate and paves increases. we'll still have to rates funds rate. >> shower. >> but we're at a reasonable point where we can set mop try policy to get back to price stability and be more judicious in balancing the risk so as to minimize the journey back to price stability so that's how i see the next phase of policy i don't think we're anywhere near stopping though in terms of you would phrase the question like slowing and then eventually pausing.
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>> right. >> we still have more work to do because we need to see inflation really on a sustainable path back down to 2%. we've had some good news on the inflation front, but we need to see more good news and sustained good news to make sure that we're returning to price stability as quickly as we can >> another message, we've heard that from a lot of your colleagues just in the last week as we've had a lot of fed speakers, fed still has work to do it almost seems like a concerted effort by the fed to talk down the market's very positive response to the inflation number is that what's happening >> no. when i come on your show, i'm not trying to channel anyone except my own views because i think it's really important for theme hear what a policy-maker, how they are framing their own decisions so that's why i like to be, you know, out there because i'm not an eelectled official i owe it to the public that i represent so they can understand
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what i'm thinking, but i am thinking that we need to see more positive news on the inflation front. i'm very grateful that we've seen some of that. i think policy is beginning to do its work, and, of course, our policy by tightening monetary policy, our aim is to slow down and moderate demand so it becomes into better balance with supply, both in product markets and labor markets so that we're leaving price pressures. i think we're beginning to see some of that working we've certainly seen a broader tightening of financial conditions and now the question is how do we calibrate our policy to continue to get that good news on inflation so that we are back to 2% so we can return to price stability. it will take some time. >> yeah. >> but i'm hoping, that you know, we continue to see that positive news, and we're going to just have to continue to do some work, i believe, to get the funds rate into a restrictive stance and appropriately
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restrictive stance so that we get back to 2% inflation. >> well, a few days ago your colleague at the st. louis fed, jim bullard, said we should be in 5% to 7% in the target rate to really bring down inflation which sounded very high, and i think it shook investors a little bit do you agree with that where are you? >> yeah. so, i mean, i don't think the market expectation is really off. if you remember in september subsequent to the september meeting i had said, you know, i had a little bit stronger inflation forecast for next year than the median sep and so i had a somewhat higher policy path than the median policy path, so right now we're in the process of preparing for the december fomc meeting, and the december meeting there will be another set of projections i do think we have to get into restrictive territory. my rue is that we're just basically entering restrictive territory, and then we'll have
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to see, right? we need to bring rates up further, i believe, and we said that in our last fomc statement at our last meeting in early involve, that we expected the fed funds rate will have to move up further, but then we have to be judicious about sort of evaluating and letting the economy tell us, you know, is inflation indeed moving down in a timely way, or do we have to even move rates higher and where will that be again, i think we're moving into a different sort of cadence of policy now that we're entering restrictive territory, that we're going to be more letting the data -- and when i say data i also mean information that we gather from talking to first and businesses and labor market people and community development people because that's more forward-looking. some of our data lags, and we don't want to just be basing policy on lagged data, we really want to be forward-looking, and that's why having our fed banks
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distributed across the country is real important because we get a really good group of forward-look indicators to really assess how the economy is doing. >> so you talk about this shift in the way you're thinking about interest rate increases now that we're in restrictive territory which translation to the market is okay 50 in december, 20 and 25 until the fed sees progress is that the right way to interpret that >> i think we can slow down from the 75 at the next meeting i don't have a problem with that i think it's very appropriate, but i do think we're going to have to let the economy tell us going forward what pause we have to be at so, you know, right now, my forecast is that we're going to see some real good progress on inflation next year. we won't be back to 2% but we'll see some meaningful progress next year, but if we don't see that then we'll eel have to make sure this our policy really reacts to the income information
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so i can't tell you today what the path going forward will be necessarily. i can tell you what i expect it to be given what my forecast is, but then we'll really have to be allowing the way the economy involves and the risks around our forecasts really guide our policy decisions. >> the other question is how much pain you're willing to take on the economy each if we're not at your target on inflation? tour tightening in a very inverted yield curve already and there's already paper. housing market, nine months of falling home sales, so what is that threshold where -- where it becomes harder to decide whether you should be raising rates to fight inflation and hurt the economy? >> i don't disagree that the journey itself is not going to be -- it's going to have some pain involved. we're going to try -- our aim is to do this as painlessly as possible, but i also want to point people to the fact that the inflation itself is very
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painful. this is not something that's easy, right? businesses are having a hard time making business to significances, households have a hard time making decisions because prices aren't stable this is already inflighting pain and the longer we're away from price stability it can have long run implications and can affect our potential growth rate as well because of investments that are needed for the long run health of the economy aren't being made when you're doing the evalies a, shouldn't be underestimating the need for continued elevated rates in the long run. that being said we to need to be judicious. we don't want to overtighten but we don't want to undertighten either and potentially drive inflation to be even more pers persistent than it's opinion so far and that's the balancing
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implications as we move ford. >> the balance sheet factors in other as well. it doesn't get a lot of air time but we're a few up dread billion off the peak of where it was how do you view that as a tool, for instance would you be flexible to stopping the tightening or the drawing down >> sure. that's another factor, no doubt, but we're set are that you have through runoff so we've you a loud it to be and as you pointed out we have to be aware of market functioning whether
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through the funds rate or balance sheet so we're very much monitoring those types of issues, right. are markets functioning? is our balance sheet runoff work the way we expect it to in terms of not imposing costs unduly on the functioning and operation of the financial market so far it's been running in the background as expected, but we're very attuned to that but would be very flexible when we put out the guidelines of how we're going do our but right now i see no reason to change that. >> finally, where do you think the economy is headed. >> the consumer held up very well, but they are increase signs of slowing do you predict recession for next year? >> i don't have that in my forecast i do think though that growth is going to be well below trending and when our in that kind of
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very low growth environment, there is a risk of a shock that can send you into negative growth, you know, for a few quarters, so, again, i don't have that built into my forecast, but i think we have to be attuned to the fact that there are risks out there, an unexpected shock could send us in negative growth, right, but, again, the focus at this moment because inflation is so high and has been so persistent has got to be on getting back to price stability, and that's what's dominating my thoughts in terms of our policy right now. >> loretta mester, appreciate you taking the time. >> thanks for having me. happy thanksgiving. >> happy thanksgiving, president of the cleveland fed, loretta mester. let's show you where we stand, down 23 points on the dow and the s&p 500 down a third and the nasdaq is downa full percent and that's because you've got all the big-tech cap names, information technology weaker as a sector as well as
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communications services within the s&p 500. when we come back more on the ftx saga as washington ramps up pressure on the entire crypto industry. and as we head to break check out the top search tickers, no surprise disney right on top up almost 6% and it has unseated the ten-year note which is right behind it which is selling off yields are a little bit higher today. tesla, oil prices lower and bitcoin down to 4.5% rounding out the top five we'll be right back. navigate t. [phone: go straight.] but, to navigate the complexities of modern work... [phone: turn left.] need more than technology. you need cdw. [phone: you have arrived.] so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so your teams can collaborate with zero trust security anywhere. [phone: destination ahead.] microsoft makes modern work possible.
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welcome back washington is turning up the heat on crypto companies announcing two new hearings today aimed at ftx and sofi's crypto move. our kate rooney is in the bahamas where crypto are headquartered. did you speak to sam bankman-fried there?
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>> reporter: absolutely. here in the bahamas in nassau where bankman-fried is located all of the ftx fallout is having a ripple effect from what we're seeing in washington the chair of the senate agriculture committee announcing a december 1st hearing called why congress needs to act. lesson learned from the ftx collapse and we heard from senator sherrod brown on banking. he's call for a hearing on sofi's crypto activity sofi responded by saying it takes regulatory compliance seriously and believes they have been fully complaint with the mandates of their bank license and laws, and sara, all of this stems from the downfall of the crypto conglomerate based here and i spoke to sam bankmanfried and despite being ousted from the company and the bankruptcy he's still trying to broker a bailout declined to talk about some of the financial details
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around the fallout of ftx and on camera interview we tried to get some answers wouldn't answer the questions that we wanted to know about the financial side of thipgtngs but he's hunkered down near theable any club he says there's billions of potential funding to make customers whole and he talked about getting as much value back to iris. he hates what happens and wishes he had been more careful he also maintains that there are billions of dollars in customer asset available despite not having access to his corporate e-mails or any ftx systems to be clear there is a long shot any sort of bail jewett long shot here and legal experts do tell me same bank manfried would be no better but that should help imin civil or criminal court and john ray is also
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exploring sale options for ftx back to you. >> kate reason, thanks very much with the update from the bahamas where sam bankmanfried is camped out. sofi shares under a lot of pressure on the news of the investments the stock is down 6.33%, the company issuing a statement saying we do not partner with ftx or have any direct exposure to ftx and that's not a hugely material part of the business clearly investors are shaken by it when we come back. reaction to our fed interview with cleveland fed president loretta mester the dow is down 55 points. we're moving south here as we head into the close.
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well, we just heard from the cleveland fed president loretta mester who said she's fine with slowing the rate of interest rate increases but need to see a meaningful inflation slowdown before any sort of pause listen >> i think we can slow down from the 75 at the next meeting i don't have a problem with that i think that is very appropriate, but i do think we're going to have to let the economy tell us going forward what pace we have to be at so
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right now my forecast is that we're going to see some real good progress on inflation next year we won't be back to 2% but we'll see some meaningful progress next year but if we don't see that then we'll have to make sure that our policy really reacts to the incoming information. let's bring in david rosenberg, rosenberg research founder and president. what i thought was notable in her comments she sort of is center to hawkish, and i don't know if you would agree. she hasn't said i need to see if the data is still hot before implementing another 75-basis point hike they are not talking about a pause any time soon. what's your take >> no, they are in the talking about a pause, and they are all talking basically within shades of grade of being, you know, not hawkish or hawkish i think to a "t" they are all
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signaling, including loretta nester, 50 basis points at the next meeting and probably more into 2023. whether they go into 2023 remains to be seep, but that's what they want the markets to believe right now, and, you know, you have to be signature here shrugging your shoulders, you know, to be talking about slowing the pace from a steady diet of 75 basis points into an inverted yield curve and really what was a flat economy this year is pretty incredible. >> so you're still of the view that -- that they are doing too much and you should sell the rallies because the fed is still hiking into an economy that's deteriorating? is it as simple as that? >> i think it's pretty well as simple as that and just remembering, you know, the famous warren buffett refrain that the up thing that we'd all learn from history is that we've just stolen from history and the historical record is pretty simple that bear market bottoms
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happen 70% of the way into the easing cycle when the fed has resteepened the yield curve to a positive shape. we're nowhere close to that. you get these tradeable rallies. it gets people excited we saw multiple of niece '01-'02 and again in '07-'08, and we get these bear market rallies. they tend to fail the 200-day moving average like the last one did, the most recent one, but, you know, in terms of talking about can we get a year-end rally with five weeks to go, that's more of a question for traders and technical strategists. >> right. >> but in terms of identifying the real low, it doesn't happen when the yield curve is inverted and the fed is still tightening policy >> so you've been very bearish on the economy as well, dave, and we have started to see increasing signs of weakness certainly the housing market in recession, but i think -- did it surprise you at how strongly the
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consumer has held up, and does it shape your view of how deep of a potential recession we could be in next year? >> well, it seems to me as though the consumer has been feeding off these fumes of all the savings that were accumulated during the pandemic, so that still provide some impetus, and we shaw that in the retail sales numbers that came out last week. we're also seeing a tremendous run up in consumer credit and especially credit cards, so that's keeping the consumer alive dot, dot, doherty right now and you mentioned the housing market you mentioned the housing market is the quintessential leading indicator for the overall economy and the lags can be variable, we know that going back to the last cycle housing really goes no a tailspin in '06 and the cracks really emerge in the housing market in '01 and in '80 we're in a full-blown recession so
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your comment on housing is apropos. the consumer is hanging in much better than i would have thought, no doubt about that, but the question would be if you stripped out this relentless run up in credit card usage it would be -- which is a classic transition indicator from expansion to recession, it wouldn't be nearly as strong as it is. >> david rosenberg, good to get your latest thoughts always appreciate you joining me. >> thank you. >> of rosenberg research take a look where we stabbed we're down 56 points on the dow. united health care and visa taking the most off the dow. disney is adding the most. the nasdaq is down a little more than 1% right now. you've got tech, communication services and consumer discretionary all down in the s&p along with energy and that's leading to half a percent pullback look at draftkings losing bet on wall street as that follows a report of a hack. we'll tell you about that next makes trading easier.
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when we come back, we'll tell you why tesla is pug back sharply and adding to big losses on the year. that story and more on bob iger's priority at disney and the news that it's sending draftkings sharply lower when we take you inside the "market zone." dow 750 on the dow back in a moment aswhy?
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. we are now in the "closing bell" market zone. cnbc market commentator mike santoli here to break drown the crucial moment of the trading day and julia boorstin on bob iger's return to disney and phil lebeau on a big tesla israel we'll kick it off, stocks down 48 points on the dow and bigger decline on the nasdaq. started the day worrying about china and covid case and potentially more lockdowns and also it's notable what we're seeing with oil. that turnaround during the day and a very strong dollar what are you focused on? >> a general sense putting that all together, sara, that there's still an overlay of concern about the pace of growth going into next year globally. you know, earlier treasury yields were lower as well which would have fit into that picture but they perked up a little bit. perhaps it was after we heard from mary daley of the san francisco fed talking about policies each more restrictive than we measure it, but in general i feel like the market has just been in this low drama
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way consolidating but has very low momentum it's so far benign pullback over the last week and a half in the early part of this month but nothing really getting out of it own way just yet. >> that's it disney. the top performer on the dow right now. former ceo bob iger retakes the reins at the company despite today's pop still amopgt worst dow stocks this year and tracking for its biggest annual decline since 1974 let's bring in joortin to dis discuss this you've covered this company very well and what is on to the-do list >> based on the zoom or video calls that he's havingwoman of disney's employees, seems like his first spirit addressing morale, morale which has been pretty low especially in the wake of the disapointing earnings a couple weeks ago. morale is first off and then figuring ow the structure of the streaming business in particular his predecessor bob chapek broke
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up the content distribution businesses, and many said that pitted those two divisions against each other so he'll be trying to figure out how to restructure the company to be more successful in terms of driving the roi and the streaming business going forward. >> mike, what -- what is the analyst reaction to all of this at disney and how stuck is disney in this downtrend for the stock? >> generally positive response here obviously the street is very accustomed to having bob ifer tell the story of disney to try to set priorities. he does get some benefit of the doubt for being able to do that. they want greater confidence that there's going to be some discipline when it comes to the streaming priorities in terms of spending and whether those losses in fact are going to trend towards break even the next year or so. all those things i think are key. i'm not sure there's a particular big strategic move that is anticipated here
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it's much more about somebody who knows the business well, has a lot of focus on cultivation of talent and content creators and the ability to try and create and preserve these big franchises that can be cross-sold across the entire country. >> i think the presence of another activist hearing that nelson peltz is now a shareholder is a positive for investors that have looked at some of his other companies that he's gotten involved in, p & g when he join the board and that stock went up a lot. there's a question mark about how much disney and iger and the board is going to be engaging with him what have we learned about their relationship with loeb and other activists that have been in this stock? >> reporter: if you look at the relationship that chapek has with loeb they said they had been making progress and had come to certain agreements we saw some of the recommended board members being appointed to the board but ultimately it seemed like they were not happy with the performance,
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particularly in the most recent quarter. disney had managed to add more subscribers to its streaming business but the profitability was falling far short of expectations and the losses were growing so i think, that you know, iger is very conciliatory and very easy to deal with in terms of managing the relationship with investors, and i would expect that to continue, so as we see the stock up over 6% today, it seems like the expectation is that he'll work with all shareholders of the company. >> joortsp, julia, thank you very much. appreciate it. adding the most to the dow right now, you have united health, visa, alp, sales force, nike all taking off from the dow games. tesla is tumbling again on another recall we've got the bottom of the s&p 500 right now. this israel affecting 323,000 vehicles in the u.s. over faulty tail lights. that's according to the carmaker just last week tesla recalled rolfly 30,000 model-s cars over
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an air bag issue shares are trading at their lowest levels in two years let's get to phil lebeau for more also the twitter preoccupation musk is clearly very involved in some of the changes over there that seems to have been weighing on the stock here as well. >> sure. sara, i think that weighs on the stock ten times more than any recall there are recalls and there are recalls. the 321,000 vehicles because the tail light intermittently is not working, in the world of israels, that's a small up there are no accidents or deaths related to it and over-the-heir software update will take care of t.tons of automakers with similar types of recalls we don't report on them and they don't get a lot of attention but because it's tesla it get a lot of attention to your point about the twitter overhang, that's far more reason why the stock is under pressure right now. remember, tesla has always been a storied momentum stock where's the momentum coming from right now in the next big event, if you will, is the tesla semi
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deliveries beginning on december 1st. that's to the going to be a huge revenue generator and it's another product and poe fencely they could grow that business but that's not going to help the bottom line right away so there's really no momentum storied driver right now and it's not elon musk because his focus right now is on twitter. >> what do we know about the -- i feel like we've talked about this before, but it's not widely known about the leadership of tesla, who is running it in musk's place is there a successor in place of musk >> right. >> that's making it work >> he's got a strong bench he's got a strong bench. whether or not he has a designated successor at this point that's unclear, and -- and while he has talked about some day stepping back from day-to-day operations running tesla, he has said that many times over the years, and i think most people look at those comments and they say, okay, well, when you finally do decide that you're going to put a succession plan in place, then we'll sit there and do an
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in-depth analysis, but in terms of his team there, it's a strong team they just don't get a lot of attention publicly where people say, well, this is the person who is going to run it next. >> no. can't think of that at all phil lebeau, thank you mike, the stock is down 6.4%, so for the year it's now down 52 was. it got some attention on drudge report on the cover about the stock's underperformance i wonder if that's a tell, a couldn't indicator of some sort. what does tesla, what do these levels look like you to? >> it's tough to separate what's going on with tesla under the aggressive unwind mega cap glamor crowded growth stocks that we had a year, year and a half ago tesla for its part has essentially made a round trip over the last two years, so two years ago is when it first started to accelerate higher had a massive move before that right as the pandemic started and really started to get going,
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adding to the s&p and having a stock split and people crowded into a handful of favorite names so that's been unwound you have musk selling all the stock. musk seeming like he's kind of bored with tesla and running it and pre-occupied with twitter and tweeting constantly and having his kind of chaotic management style on display for the entire world so it's tough to tees out exactly what of that is pressuring tesla. now car stocks in general struggling a little bit right here, ev stocks in general having a hard time, the china sales outlook maybe not looking so great so there's lots of reasons why we'd be trading down here, but, know, the twitter involvement is obviously unavoidable >> the china factor looms large as well as i mentioned you're showing that in the market today china exposure getting hit let's hit draftkings because it's under pressure as well. gamble news outlook action network reporting overnight that ising draftkings users were hacked our contessa brewer here with more what happened, and how deep does
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it is go >> draftkings says it wasn't hacked but rather broken into by a burglar who had a key. some other sites got hacked, third-party sites where people had used either their draftkings user name and log-in information or they used the user names and log-in information across websites for your bank or utilities. that gets hacked somebody finds out what that is and uses it to break into your draftkings account they say at this point they think less than $300,000 was stolen out of those accounts from draftkings and that they do plan to make whole the customers who lost money, but in the meantime they are going back and saying, up, you need to have strong authentication in place and use different user names and passwords and we're hearing the same thing from fan duel at this point that they are reporting their customers to report anything suspicious and to be careful. they report an increase in activity the real problem, sara, is there are questions now about how safe
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is your money. i've asked jason robbins, the ceo of draftkings this question, and they have put a lot of time, energy and effort into cyber security, so it was not the draftkings site that got hacked. it was rather a back door entrance through third-party sites. >> just the latest in a string of concerns about this stock it's down now what, 60% over the last 12 months what is the consensus, contessa, about what's happening with the business ? >> yeah, i think that this path to profitability still under great scrutiny especially under earnings jason robbins had said they plan to be profitable in the fourth quarter of 2023 even as some of their competitors, caesars and penn have said, hey, we might be profitable in our digital business in the fourth quarter of '22 depending on what happens with mattress. if you're that close that a bet from a guy in houston could make or break profitability, you've set the bar rather higher and draftkings has just steady eddie said, no, it's going to be fourth quarter
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they are still planning to spend while they are rolling out. >> contessa brewer, thank you. draftkings down another 5% on top of an already tough year that it's having, mike look at 59 it-week lows. tesla is on the list, low since june of 2021 some of the highs are pepsico trading at an all-time high, riley auto, all-time high. >> retailers have been really good and countercyclical and staple-like. in general they are soft but not dramatically so. the market has been within a range all day. the s&p outperforming the market cap. less than 2-1 declining volume energies, as you mentioned, a weak spot. take a look at the xop, kind of rolled a little bit and never got up to the june highs and is
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sort of hovering right above the august highs now threatening a little bit of a breakdown but not quite there. volatility index is kind of asleep here. it's backing off about .7 again. narrow range-bound trading as well as we're going to get a holiday-interrupted week so it seems calm and still grungingly getting down into the low 20s on the vix, sara. >> nasdaq is getting hit the hardest as we go into the close. now 32% off its highs. down about 30% for the year. there's the dow. it's down 37 points right now. it's being helped by disney, home depot, honeywell, procter & gamble and a lot of stocks trying to prop up the dow which is a outperform today. united health is the biggest drag, taking 90 points off the dow. visa, apple, chevron, all losers within the s&p 500 which is lower by a third of 1% it's the tech stocks and energy stocks which are doing the worst today. consumer staples are up a full percent, real estate and
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utilities. the defensive groups, recession-type stocks, that are working best today industrials, materials, financials and health care also going to close out in positive territory. small caps underperform. they are down .6 of 1% that will do it for mow here on "closing bell. i'm going to go get some hot water with lemon and send it no "overtime" with scott wapner >> all right sara, thanks investment welcome to "overtime." i'm scott wapner we're just getting started from post 1 here at the new york stock exchange, and in just a little bit i'll be joined by a former disney investors who says don't buy the stock on iger's stunning return as ceo he will tell us why. we've also got zoom and dell earnings about to hit and, of course, the stocks moves that follow we begin with the talk of the tape the pause in the real and whether it means an end-of-year jump for stocks is not going to be in the cards. let's ask cameron dawson, th


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