jumped it from what you told me last week in overtime >> yes schlumberger is my biggest energy play. chevron is second, diamondback energy is third. i am double the bench mamark weighting. 10% is energy. strong cash flows. low break evens across the board. supply and demand, there's a huge imbalance valuations are attractive. what you're going to see is earnings revisions going higher. these companies have pricing power. i kind of barbell it chevron is the boring play, integrated, has good dividend and assets tons of free cash flow keep buying back stock can get to $5 billion buy back schlumberger, talk about pricing power and margins, have gone up seven straight quarters in a row for schlumberger, up 200 basis points this year according to guidance diamondback are doing fun things in terms of what free cash flow, special dividends, now yields 4% good assets. trades 7 times earnings. stocks can still be bought i am using weakness whenever we get it to buy more. >> doc, you're a diamondback guy. energy is your largest sector. >> it is, scott, and has been all year to give you an idea,

i fill in ever couple of years you've been talking about schlumberger since i've had more hair give yourself a little pat on the back as well when we look at the oil complex, do you think it's going to be the servicers, the slbs, the howells or the refiners or c, all of the above >> yeah, that's fair and i appreciate that. that's not what we do on this show as you know but in the ioh and the names you mentioned, 40% of the ioh is comprised of schlumberger and to a lesser extent baker hughes all those companies are run much better now than in the heyday of crude, let's call it 10, 15 years or so ago. they're better companies at better valuations. can they continue to go higher yeah a new 52-week high today, pulled back a little bit. but absolutely again, i'll say it the fact that everybody is now talking about energy as somewhat problematic and maybe that's a short-term bell ring on the top. but, again, by no means i want to emphasize this do i think this is over you can release every barrel from the strategic petroleum reserve, and we'd still have a problem. you know why and i know

it is a barbell strategy chevron, schlumberger, i was adding on the pull back. you have to be patient chevron is blue chip, bellwether, good dividend yield, good assets, doing the right thing in terms of buying back stock, increasing dividend downstream margins quite strong in the report. schlumberger, they make customers more productive, efficient. their margins can improve. i expect an increase of 200 basis points in margins. diamondback energy, they continue to increase the dividends and they offered a special one a month ago. it is good assets, and all the companies are making money at 40 to 50 dollar oil oil prices could pull back, but they're still minting money. >> you like the barbell approach. >> i have transocean, melissa. this is a highly levered company but supply/demand imbalance in energy will continue we have to drill in deepwater, harsh water. transocean a year and a half ago had new builds coming on, we were like what are they going to do now they're putting them to work at high day rates and existing rates, day rates are going up. this should b

i have schlumberger, i don't really love it and i'm looking at halliburton and now schlumberger is breaking out a little so i have to stick with it. liz: we have a rare agreement here, right, keith fitz-gerald, you like chevron. you had recommended it the last time you were on the show. its done incredibly well obviously down slightly today, but what else can you tell us about the energy story that sarge hasn't already, you know, expounded upon? >> well, this maybe the shortest interview ever, i'm just going to say ditto to the sarge. you have to go where stuff is working, you don't ever get off a winning horse particularly now if we got the economic hurricane , whatever you want to call it coming our way, you want to stick with companies that make the products the world can't live without that had the pricing power and importantly the ceo's that can execute. many of the companies are going to get hit in the next four, five, six weeks are companies like the robinhoods, like the g emini, those companies where you have a real split. liz: hold on, keith. microsoft is nowhere near the risk of t

schlumberger j slipped 20% last year. the conversation with these upside moves is how much staying power is there and some of these moves. interesting note on the lennar, the stock got hammered last week. everyone said that big jump in interest rates will have a material impact on these homebuilders. so far no effect. in terms of actual deliveries, that was up 4%, better-than-expected. purchase price of those sales were up about 20%. the company says it will stick by its full-year forecast to deliver around 68 homes. nevertheless, shares up 4% on the day. you mentioned john micklethwait over at the qatar economic forum interviewing elon musk, interesting comments about twitter. as always, he has a lot of caveats about what he needs to see to see that deal to completion. well below that offer price. also talked about his own business at tesla, confirming the layoffs, scale down in the total amount of salary workers, hourly workers. interesting commentary on the bloomberg terminal. also coming out, exxon mobil taking a 6% s

halliburton, schlumberger, diamondback calls and what do you think given your exposure in the space here >> well, there aren't a lot of alternatives that people have right now, scott obviously evs are a growing part of the way that people deal with not having to buy crude -- fossil fuels but that's a very small percentage it'll grow but it's small so the alternatives are just not there. secondarily, the sanctions that we and other nations have put on russia make it really tough for europe in particular so they're drawing a lot more energy to europe from other areas that normally we and the chinese and others would be buying from. and i think that's just a perfect storm to send crude oil as i think jpmorgan's analysts have said up to 150. we'll be dealing with six and 8 and $10 a gallon crude oil refined product. i just don't see an alternative right now. >> sarat, you could pick at this call and some say it's run too much time to take money off the table. even if you don't want to the market may do it for you if people take money there they'll put it somewhere else and say staples have r

katrina dudley's fast pitch on aercap we'll bring you the results after the show coming up, shares of schlumberger losing today. we'll drill down into the trade next plus, meta, tfx neliand paypal making their move to a new home tomorrow oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire you know real chili never has beans. you know a cappuccino is for the morning and an espresso is for the afternoon. you know which pizza is eaten with a fork and a knife... and which one is definitely not. the delta skymiles® american express c

obviously, china there, and you see sectors and the exploration of product issues and you have schlumberger and halliburton, all down noticeably, and these are off of their lows from earlier today. down new lows and we've got an awful lot of them and 400 on the new york stock exchange, but there you see microsoft down and intel particularly dropped and intel was $44 a few days ago and now look at that $34 and we're talking about 15% or so declines in the last six, serve trading sessions and goldman sachs, another one and that was 320, goldman. just five days ago i did a story on that. so you see another 15 -- 12 or 13% decline. here's something remackable that you'll see at the open today, 30 to 1 declining in advancing stocks and you can go many, many years without seeing that advanced decline in balance today. even now, only about 3% of the s&p 500 is in the green. that's 13, 14, 15 stocks that are up mcdonald's, smucker, obviously coca-cola and the travelers is a broad line you can see s&p yoeths down 3% the s&p value down 3%. to be small cap down about 3 pes. s&p growth value down about

over the space chevron, kinder morgan, calls in chevron, apache, baker hughes, shell, marathon, oxy, schlumberger tell me about your view. >> my view is that all these can work to josh's point i would say this, there are reasons to be in certain names versus other names when you look at big integrated names, there's a lot of different forces that give you more power with those. but they're going to lag a bit to names where you get more bang for the buck you have to look at the xop which has most of those names, big beta names, look at that performance versus exxon or xle or other energy new yeetfs there are names that are on fire when it turns the other way, they work just as fast to the down side. that's what you have to be careful of i love ev space, battery companies. charge point has been on fire, unusual option activity in there the last three, four, five sessions, coming in, buying huge sums of calls to the up side there's a reason to be in some of the names i look at that name, i am like this can be volatile, that was i think josh it is volatile can go up 7%, down 7%. but the options give

that's very positive schlu schlumberger raised the dividend 40%, they beat, raised, margins are higher, it is a hidden technology play. they make their customers more productive, efficient, and have pricing power. i pick spots within energy i like all three very much i will ride the volatility train, i believe the underlying story strategically has changed for the industry >> exxonmobile, speaking of which, credit suisse upgrading this where do you find spots in energy, josh, if there are >> one thing i would say, broadly speaking, one of the hallmarks of a bear market, there's nowhere to hide. you can have a sector like oil, obviously the big leader this year, last year, last week has the worst five-day period in multiple years and a lot of gains of people said i am hiding in oil disappear almost overnight. we have been through that. harder part is to say i understand everybody gets hit eventually in a market like this, but what are the buyable dips can i pull the lens back enough to see something is still in an overall up trend, even if it had a horrific three day, five day stretch.

domestic production i'm in a patch e, pioneer, that covers the permian , and oil services, schlumberger, but i'd like to get into baker hughs i just haven't had the market opportunity to do so yet and your retail investors at home will love this. i run the su-10 portfolio stock s for the street, and for that portfolio, i have southwestern energy, swn, and transocean, rig in the bullpen. liz: okay but the tech names are you picking up anything here? our investors are looking at some of these prices down 20, 30 , 40% from their recent highs. >> oh, sure. in fact this week, i added to my service now, which is a software name, added to my service now position and added to my sales force position. as far as those kinds of names go, yeah they are a little rich and not in the ballpark of the names i usually trade but when it comes to software i invest in ceo's so i'm investing in microsoft, bill mcdermot, and as far as sales salesforce, that's benihoff. so i pick the guys i perceive as winners i want them to work and win for me. liz: well, guys, you know, again , the ending and beginning of su

marathon oil up at the top of the list prologis royal caribbean and schlumberger and on the downside. ip it is down 2% right now. we will continue to talk about this and much more when we come back you are watching "squawk box" and this is cnbc >> announcer: this cnbc program is sponsored by truist securities ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future. (applause) ♪ ♪ opportunity is setting a goal... ...and charting a course to get there. sometimes the only thing standing between you and opportunity... ...is someone who can make the connection. at ice, we connect people to opportunity. at xfinity, we're constantly innovating. and we're working 24/7 to connect you to more of what you love. we're bri

but not so construct for the stocks at the moment they were at their lows but phillips 66 down 7%, schlumberger, halliburton, and we of course are looking at vale ro too down 8% loss, diamondback energy down 5.7%. it's a cruel, cruel summer for airline travelers, and what about investors? well, as if the last weekend thousands of cancellations weren't enough, united today adding more turbulence. the airline is cutting 12% of its daily flights out of one major airport in the u.s.. up next is the citigroup analyst who just 24 hours ago made a bullish call on the airline still bullish? well, with the closing bell ring ing in 37 minutes and the dow up 68 points we're going to see if this changes his mind, and which airline he thinks might be next to do the same. don't go away. lemons, lemons, lemons. look how nice they are. the moment you become an expedia member, you can instantly start saving on your travels. so you can go and see all those, lovely, lemony, lemons. ♪ and never wonder if you got a good deal. because you did. ♪ meet jessica moore. jessica was born to care. she always had your b

pattera down 21.5% for the week followed by eog and schlumberger and hallie burton. today chris baron said the market pressure will not be over until quality stocks fall even harder he'll break down the level on apple, we just mentioned it as an underperformer today, it is far below where it is sitting today. let's get straight to the markets. as the s&p 500 paces for the worst week following the big fed rate hike. joining us is mohamed el aran. it is great to get your take on this. >> thank you, melissa. >> what is your message from the markets. >> it is a week in which the market got worried first about inflation and then about growth. and we've ended up being whipsawed in the fixed income market but in the equity market, and that is what you would expect >> in terms of the moves that we've seen, we've seen some pretty extraordinary moves not just in the equity side but in fixed income and also in the cred side. we saw junk bonds go above 500 basis points for the first time since 2000 how do you determine the stressors the market could be facing >> i think we've re

here you look at the big name, halliburton, schlumberger, most of the refiners not down quite so much. associat so, david, this goes to the concerns overall demand destruction on top of comphien creating a difficult situation for the energy stock david. >> bob, thank you. perfect place to start with the next guest as well the energy market being a key. we'll thing the head of security of global commodity research francisco, let me go to you with the question that bob was raising about demand destruction. how much are you seeing, how much do you anticipate in terms if the price continues to even stay at this level or even rise from here? >> well, the way we think about the destruction in energy markets is we look at every million barrels a day or so, global demand or supply. leads to a 20 to 25 million in price us if you look at the past six months, we don't have the supply to grow the demand, we were based at 100 million precovid. 91, 91.6 last year we don't have the supply, the 3.5 million barrels a day to get back there essentially the prices are just higher to slow down the rate of