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 ♪ ♪ welcome to "power lunch" on this wednesday afternoon, alongside kelly evans, i'm dominic chu. we want to get straight to the market action. big earnings misses are sending stocks lower and markedly so as you can see there. we are talking specifically the technology space. the nasdaq is down nearly 3%, a loss of 500+ points at one point. by the way, this will be the

worst day of the year and worst day going back to 2022 at this point. the s&p 500, you can see they're down almost 1.75%, and a hundred points and the nasdaq down almost 3%. kelly, we'll start with earnings movers of the day as well as names on deck so far. al alphabet being rattled and chipotle may be biting off more than it can chew. so let's start with the alphabet trade down about 3% so far, now about 4.5% at this point. steve kovac joins us with the details on just why you're seeing the kind of price declines you're seeing in alphabet today. >> dom, it's not just the decline in ad sales growth. it's also showing that it's been not really cheap to be an artificial intelligence hyperscaler. the theme of alphabet earnings

last night and basically, we can expect to see that continue next week when the cloud leaders, amazon and microsoft report their earnings. much of the conference call for alphabet centered around how much google plans to spend in capital expenditures to meet increasing ai demand and that means ai start-ups and big names with meta and anthropic running their ai systems on google's clouds. the ceo said to expect at least $12 billion each quarter to build out more ai capabilities and sundar pachai would rather use anything extra to another part of the business. the wall street notes, they were half as much as google has spent so far this year. for now the spending is helping it grow, and it surpassed $10 billion in quarterly sales for the very first time and it hit

$1 billion in operating profit. a reminder here google was also willing to spend $23 billion to juice even more cloud growth before that deal fell apart earlier this week, plus alphabet will continue to cut costs in other areas that have nothing to do with ai, more layoffs could be on the horizon there and among the hyperscalers like google, amazon and microsoft there's generally more ai demand than they canny supply. we've seen efforts mitigate that in the medium term like oracle to offload a icloud computing including with open ai. if you are confused about how much the magnificent companies, alphabet's outlook on massive ai capex is a strong hint. what we'll hear next week with amazon and microsoft, guys. >> steve, how much of the move lower is with regard with the spending that we are going to see the maybe medium to longer term impacts on profitability. it seemed as though not too long

ago we were rewarding as investors companies for wanting to spend more and more money on ai. what changed in the last couple of months? >> based on the analyst call, dom, so many of the questions were around the same. when do we see a payback from all this investment and right now it's just a money-losing proposition even though so many companies are signing on and we saw that revenue that alphabet is generating and we know microsoft is seeing a similar boost as amazon through aws and it becomes a question how long does this need to continue and how much more has to be spent and the executives just don't know, and i'll go back to what the ceo sunder pachai said and the demand is higher than it is in order to get where he thinks it need to be and deal with it later and that didn't seem to satisfy people who really want an answer of how long this spending is going to continue and when the return comes.

>> steve, thank you. steve kovac. tesla underwhelming investors seeing a 7% revenue drop and it now puts it down 12% for the year. craig irwin of roth mkm is here. is this about profits, profit margins, craig? just overall business trends? why do you think the stock is being punished so sharply? >> so the stock had had a run-up for expectation around the robo taxi and cyber cab. there's new on ai and the robo taxi has been punted. they still think they'll have something with no steering wheel and in this unveiling it will have a steering wheel. it's still a car company and they missed cps by a dime and they're down 5% year over year in delivery. so it's just not a good story on

the automotive side right now. so things are not coming together on the forward look, and you know, it's being right for the valuation. >> it's considerably below where it's trading now. what do you think the business is worth? >> so i think it shouldn't really be trading at a premium value to toyota, right? you look at this -- >> even if they were self-driving? >> there are people whose cars are more or less driving themselves and that's something that i don't think a lot of the other makers can offer. >> you know what? i think it's a risk appetite, so to touch on optimus. boston dynamics is years ahead for tesla and hyundai bought that for $1 million. if you want to talk about fsd 2.5 and if you reach for the dream that they describe, the resolution on the cameras and the vehicles is inadequate. they need about a 10x increase in the resolution on the cameras

and they have no vehicles and then the attacks on the power train and the amount of electrons you will burn or consume to run the system and run the compute is about the same as what it would be to actually propel the vehicle and you cut your range in half. that's a non-starter for this whole level 4, 4 1/2 they talk about. yeah, they are probably -- they deserve a lot of credit for being out front, right? as far as the capabilities of the system they put in the car. again, it's a risk appetite thing and that's why it deserves a similar valuation or they shouldn't trade at a premium for toyota and they have a multiple to do that, toyota is selling more than 9 million cars and tesla is not going to do two. >> how long does it take for the tesla story to turn around given what these expectations are going to be and what they just told us about this past quarter? is there a catalyst or a series of them that gets this thing

trending higher rather than chopping the way it is right now? >> so the last time i upgraded this thing to buy was 2019, right? we are back to where margins were in 2019. the stock has yet to readjust and there are lofty expectations around ai, dojo and optimus and five years ago is when elon musk gave us this promise around the robo taxi and it was supposed to be an upgrade in the software to your car that you had bought so you can send it out and it would go and make money for you. so there have been hyperbolic claims made by the company and big promises that have not been fulfilled. you upon, i'm not expecting the stock to have a lot of upward pressure in the next year. we have pricing pressure for discounting that will continue. we have product launches and cyber truck was a dud. the new mini car they really need to hurry up and get that out. it's five years late, and you know, i think that the robbo cab

is more likely to be a negative catalyst given that it will not have a steering wheel. i'm not expecting the stock to be in a big upward trajectory any time soon. >> hating on the steering wheel, craig. i take your point, though. they're trying to innovate and push through some of these things. >> i love what they do. they're an innovator, great company, just overvalued. >> they want to get rid of the side-view mirrors and regulators didn't let them do all sorts of things. tesla shares down 11%. >> from new tech to the older tech, ibm is on deck after the bell. expectation are low for big blue. the stock is lower slightly today, but some believe the company is a sleeper with regard to the artificial intelligence play. seema modi joins us more with how this seemingly old world tech company can cast itself as new again.

>> that's right, wall street will be watching and the hybrid cloud business, growth in consulting and ai offerings and the company has roughly $750 million in generative ai bookings to date while accenture generated around 900 million in second quarter alone which rbc analyst matthew swanson illustrates how big this market is. swanson has a $200 price target on ibm and it is currently raiding at 183 and, having an upside, and hashicorp over $6 billion that is still under ftc review. shares of ibm, you'll see, have stalled as wall street has focused so much on hyperscalers as the favorite ai trades and it is trading at a discount to the bradder s&p tech sector. >> it's been for a long time, seema, about the sequential revenue declines that we've

seen, growth declines overall for ibm. >> how much now do investors want to focus strictly on this ai thread and this ai part of the story as opposed to how it fits in the portfolio for how it's doing that in the coming years. >> the thing about the ceo issent grating it from he blid clouds and that's a key focus that. h help you photocode fractionally doing better. >> and up 12%, seema, thank you, on ibm reporting this afternoon and outside of big tech, chipotle also reports. analysts have some high expectation, but what could the company's pricing controversy do for those numbers? kate rodgers is watching that, surprisingly chipotle itself has been an underperformer lately. ? don't forget, kelly, was there a

stock split as well this quarter, but to kick it off here, analysts are looking for an eps on 32 cents on revenue of 2.39 billion for the second quarter and same-store sales projected to increase by 9% and chipotle's not been getting in on the value wars and it will be interesting to see niccol are people trading down at all with the fast food competitors. they told us they were seeing traffic growth which impressive and rare in this environment. the company saw traffic growth of 5% overall last quarter. there's been a lot of social media around the portion sizes, with some customers saying the sizes have changed and are smaller and niccol has maintained the sizes has not changed and the mcdonald's u.s. president published an open letter about its pricing which is up by as much as 40% by items in recent years and that was after viral social posts claimed

prices had hiked by more than 100% which is not true. chipotle's board improved the 50 to 1 stock split and it did begin trading on a post-slip basis last month and fast month names are lower year to date and don't forget brian niccol will be on closing bell. much more to come.yone should b nervous about what just happened to land west, kate. the shares down 28% as dom just told us. they're down 50% in a year. it's not a great read through for what's going on with restaurant margins and visits and traffic and all of that. >> yeah. certainly, they did caution that restaurant and demand went down and we'll hear from mcdonald's and that company said the value bundle and the $5 meal is working and that franchisees will be extending that in most of its market so that seems to

be doing well, and i can't wait to hear if its had such an impact on chipotle because it's been so strong with income cohorts. >> kate rogers, thank you very much for that, kate. as we head off to break, some of the earnings we want to flag including seagate. we'll see that in tech check coming up and enphase. pippa stevens will join us to kick off the move on that name and lamb weston and we'll speak with tillman fuertitta about th weakness in the restaurant. "power lunch" is back after this. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia.

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welcome back. here's a look at the markets. tough day across the board especially for the nasdaq down 3% and for bond yields, that's where, you know, i have so many questions. who better to ask than rick

santelli? rick, some people making a lot of what bill dudley said and how he's concerned about the economy and the ten-year yield seems to be moving higher and i don't know, what do you think is going on here? >> i'm not going to speak for mr. dudley, but what i can do is let's look at the three maturities on the yield curve. let's look at a two, a 10 and 30 on top of each other and you can clearly see that the two-year yield is more moderate. right now it's down about 3 1/2, four basis points and as you move alongs, a 30 is up almost six basis points. now let's look around at what's going on. nasdaq. the nasdaq is down, what? about 3%. many times you get a flight to safety and treasurys and that could be part of the reason short maturities like a two year and a three year are getting buying, keeping yields lower. in addition it's also getting a tailwind from the notion of comments like mr. dudley who is

actually believing that there is a possibility of an ease at the july meeting. no matter how you slice it, the markets are not pricing that in and not a possibility and by september, they're pricing one cut for 2024. those two issues are very important for short maturities, but the longer you move out the curve, that dynamic totally disappears in tens, 20s and 30s and it makes sense. what's the key platform going to be? what have we talked about today? even though the vice president, in my opinion, hasn't underscored much in policy and the policy being attributed to her from the entire biden administration and it will be a big fight over taxes. well, what's really the conversation about taxes? it's about spending. it's about spending versus revenues and about debt, servicing the debt and approaching a trillion dollars and i know this story seems to be an old one and it's the reason long maturities are more

skittish. in addition, when you see the slowing that we see bank of canada cut again, they're seeing slowing and it really is a dynamic that the long end is not paying attention to. what has that done to these yield curves? it's an amazing move? let's look at twos and 10s over three days and it's turned into a rocket ship. right now it's trading minus 13. three or four weeks ago it was trading at minus 50 basis points. if you look at the chart we're going all of the way back to july of '22 on the spread and that has never been under 15 basis points going back to july, two years, and another huge story, there are two central bank meetings coming up. the bank of japan, big ones, i. the dollar yen continues to have huge moves in favor of the yen against the dollar. should the dollar close at a two and a half month low and at the end of a two and a half month high and there's fear that jay might actually hike rates and

what's going on a lot of the asian trades that have used that currency for a carry trade because it's been relatively cheap, those are unwinding and it's putting huge bidding pressure in the yen. that's pretty much what i'm seeing today, dom chu. back to you. >> let me ask you a quick follow-up question, and i hate to say this, maybe i shouldn't be looking at the ten-year. so you look at the yields today. anything up to the threes are down in yield and anything beyond that is higher. there are only three reasons the long end would be higher. better growth, higher inflation or pickal problems. do you think it's better growth? to your point about why it's inverting. why? >> fiscal problems. absolutely fiscal problems. if there was one maturity that i would look at it would be tens and probably 30s because it's giving you a much more accurate picture and there were comments that we have a list trust moment should the trump administration win. we have a list trust moment no

matter who wins if we keep not paying attention to the fiscal issues that confront us with comments like oh, don't worry about the options and don't worry about the debt. people will continue and investors continue, countries will continue to buy everything we have until they don't and there's going to be not a lot of warning and it's just going to change quickly and these are the first little warning signs. it's an election year. the stories are going to get naftet and markets are going to pay attention. >> i do wonder in the 30 years of seven basis points to your point. appreciate it. thank you very much, rick santelli. all right. let's take a look at the big names bucking the trend. lockheed martin, the defense contractor upgrading to buy over cowan. mattel up 10% after better than expected earnings report. tenet health care surging on a beat of its own and holding up better than other parts of the market and check out solar player enphase energy despite

posting an earnings miss on optimism the pain in the solar sector may finally be reaching a trough and turning. pippa stevens joins us with more on the solar story and enphase in particular. >> it is up, meaning it is by far as you noted and it was a top and bottom line miss and the guidance, the high end of the guidance was within range for q3 revenue and it is stopping under shipping and it no longer has to do that. essentially it was a good enough quarter and the company has turned a corner in the sense that previously for the past few quarters it was undershipping to try to correct how much excess product there was in the channel. think about when you have too much product you want to get it out of there and sold to the end customer and it was not indicative of underlying demand. that's now over, so looking forward, their sales figures will be reflectionive of what revenue is. however, there's still a far way

to go and you see there on the revenue chart, just last year it was above 700 million per quarter and right now for the current quarter the high end of the forecast is 410 million and still a far cry from that and also sun power is one of their customers and just last week the company said it was halting new leases and halting new installations. i did ask the ceo about that last night. he said he wouldn't comment on the specific nature and it's just a hiccup, though, and if you have demand there are other players to absorb it and provide it, but not good for the overall industry. >> one of the bigger themes over the last year or so with regard to solar was the supply/demand imbalance, right? we have this fear of chinese-made parts and components flooding the market and it takes the industry down. does the end phase report mean that the entire industry havemore discipline now with regard to how they'll treat production and rollouts and everything else. >> i think the issue is that it's still a relatively new

industry and it has been around for decades and they're trying to respond to the crazy upswings in demand based on what happens with rates and when rates are at zero all of the people decide to go solar and they sped up their and their manufacturing in order to get product to customers and air shipping and all of these expenses and just as the product arrived the demand slowed and enphase is a little bit different in the sense that they do residential market. the issues are prevalent across the industry and more focused on the utility scale with the manufacturers. for the time being a lot of the lot of the products are commoditized and you have to compete to make sure your product is in front and whichever way you take it -- >> we had to pair that with ge with regard to alternative energy and you get an interesting picture. >> pippa stevens, thank you very much for that. appreciate it.

nvidia is down pretty big. you can see it down call it 5.25%. we'll continue to track the action especially in tech when we return from this commercial break. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies.

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welcome back. those bellwether semistocks living up to their name as we see deep declines in nvidia and some others. that's sending today's sell-off in the nasdaq 100 into the 500+-point territory. seema mody has more in today's tech check. what gives? >> sector as a whole's worst day since july 17th and even when you look at the nasdaq 100, 40% of the losses for the nasdaq 100 are coming from the semiconductor stocks so clearly these chip names are getting caught up in what's happening today. google's capex and how much are spending on technical infrastructure and chips and the fact that hyperscaler did not spend for the year is raising questions as to whether meta, amazon and microsoft will do the same. goldman sachs and sequoia have warned that bigger capex budgets

may not be justified and that is a potential headwind for the chipmakers that rely on that spend. nvidia which sells its chips to the hyperscalers and you see the stock is down 5% and the competitor down a similar amount and broadcom which is working with google to develop its own inhouse chip and it's over 6% and then in the analog space, texas instruments is holding on to some gains after reporting better than expected second-quarter earnings on the call. the ceo said its u.s. operations makes it a geopolitical winner. 75% of its business is based here in the u.s. one stock is holding up and earnings is playing a more important role in understanding how strong the demand story. tonight, equipment player kla tencor will report. it's a till wind and recognizes the comments made by former president donald trump as potential risks. we'll look for those results, guys.

>> it's hard to imagine in a world where the capex budget that was reported by alphabet is somehow going to be not good enough or, you know, in some ways not going to carry this through. just how much do these hyperscalers and the industrial level-type scalers in i.t., how much do they spend it to make it better or keep the momentum going. >> it's all about context and the companies in the chip space have run up so far, so fast in the prospect by yperscaler and any sign that they're pulling back or being a bit more conservative on capex going forward is being seen as a potential headwind for these companies. >> seema mody with the latest on chips. thank you very much. let's get out to julia boorstin for a news update. >> benjamin netanyahu is addressing congress in a bid to bolster support in israel's war with hamas. netanyahu insisting that america

and israel must stand together as he promised lawmakers israel would defeat hamas in gaza. the speech drew thousands of protesters outside of the capitol building angered by the humanitarian crisis in gaza. a capitol police official says officers are deploying pepper spray toward any demonstrators trying to cross the police line. finally, salt lake city will officially host the 2034 olympic games. it seemed like a shoo-in for weeks and concerns came in about u.s. authorities possibly not supporting the anti-doping agency. it will be the fifth time the u.s. has hosted the winter games and the second time in salt lake. dom, back over to you. >> it was the only city in the running? >> yas. >> the only one? >> yes. it takes a lot to go and do that kind of thing. i mean in 2030 they'll go to the french alps. >> yeah.

that's where it's going to be. anyway, kelly. still ahead on the show. inflation may be easing, but it's still affecting restaurant owners and prrps and taking a bite out of some of those stocks today. it's an issue that's sure to come up in this election cycle, as well. we're going to ask billionaire power player tillman fertitta to weigh in when "power lunch" returns after this.

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welcome back to "power lunch." what we want to show you and call your attention now is the 3+ percent drop in the nasdaq composite index. it's down 570 points to a level of 17,427. the move is at session lows right now. we should also point out that the broader s&p 500 large cap is also now down towards its session lows. the dow is hovering towards its lows and not there yet, and we're making fresh ones, kelly

in the nasdaq composite and the broader s&p 500. >> the restaurant sector is also getting hit. full service names like cracker barrel and brinker are falling 4%. while stocks like shakeshack and wingstop are also down that much. this is in part due to the disappointing earnings from lamb weston whose shares are down 20% and it's the worst performer and on pace for its worst day ever and they're the french fry maker citing a slowdown in restaurant traffic and posting guidance well below wall street estimates. joining us now, someone who knows a thing or two about the restaurant space, the consumer and so much more. tillman fertitta is behind the rainforest cafe, bubba-gump's and the golden nugget and the nba houston rockets, tillman. it's great to see you back. how are you? >> it's great. it's great to be back. we've all been busy, so here we are. >> you know, of course, you have to come on on a day in which the french fry maker is crashing.

what's going on with your restaurants? >> well, it's kind of funny because in an earlier episode you talked about how dom perignon is down and that kind of talks about the high end, but lamb weston is really everybody. it's a great measurement, and i've never seen you all take them before, but all restaurants, no matter if it's the high-end steakhouses or a rainforest cafe and a bubba-gump, we all use french fries and if they're down the restaurant business is down and what happened is exactly true, and the consumer was strong for so long, but we're just feeling it everywhere now, and i think that's why lvmh and you're going to start seeing your restaurant stocks, they're coming in a little lower because people just aren't shopping and eating like they used to, and especially the high end, and like i said, we sell as many french fries as

everybody, but having mastro's, martin's, del frisco's and the steakhouse and that's the steak effect and the steak serving u.s. prime and high end and just like the french fry effect and the dom perignon effect, we are feeling the steak effect that people don't want to spend $70 or $90 for a piece of meat. >> it's dom here. you just laid out the case across the entire consumer spectrum over whether or not, there's not necessarily a crash, but more caution developing. i wonder as a business owner and someone who has done a lot in terms of developing businesses do you feel as though this economy in america can avoid a hard landing-type recession or do we just have to kind of bank on this idea that the fed is going to be the huge focus and that's what's going to bail us out? >> i don't -- i don't think we're going to have a super hard landing, but i -- i do think

that, you know, lowering rates, it's unbelievable how strong our economy's been that it's tethered with these high rates and the home business, as bad as it's been, it's still been okay and the high end business has still been okay. so i think if we would start lowering rates it will definitely soften it, but you can go back and see what i said two years ago when they were talking about the economy, and i said until there's a problem with not being able to hire employees anymore and there are too many and everybody is not jumping jobs for 10,000 here or 20,000 here or 50,000 here, the economy's going to be good and the economy has been good because of the employees that so many people came out of the workforce after covid that there weren't enough people out there for companies and now you're seeing it soften, everything slowed down and people aren't having the turnover and people aren't moving jobs and that's

the biggest sign of it all is what's happening with the labor base out there and when that slows, everything slows. >> although i hear you talking more about normalization, tillman than the hard landing recession question. you know, now i wonder, of course, we run head-on into the election cycle and i don't know if you think that will be a swing factor. >> i -- i don't know, you know, what a factor it's going to be if trump wins or kamala wins. you're talking about two just totally different philosophies and from an extreme area of how they see the world, and i do think that the vice presidential pick will be more important this time, and i think that if kamala chooses somebody like a mark kelly who is a hero, whose wife is gabby giffords from all of the people that do not like guns, i think that -- that it

kind of goes back to the sarah palin and john mccain that she hurt him, not necessarily that she should have, but that's what the media's perception was and they used it, but i think that the vice presidential pick this time has a little more effect than it normally does, any if kamala picks the right vice president here who is totally different from her and mark's a man's man who is a great speaker, who has shown his leadership, i do think that it could be tougher for -- for trump and j.d. vance than i thought, and i've met j.d. vance. he's a really nice man who is extremely, extremely intelligent, but i'm worried if they choose the right v.p., i think we could really have us a battle on our hands. >> tillman, speaking of optimism and caution and the v.p. picks,

would you venture an opinion as to what you think would be the better business administration hypothetically speaking from your standpoint? we've asked a number of our guest over the last several weeks about predicting or trying to extrapolate what they think will be a friendlier environment for business owners across america. you're a very successful one. what do you think? what would you prefer? >> well, that's quite obvious what i would prefer and you know, if you just look at history. a republican administration is always going to be better. maybe not history, but what's happened is is that the last couple of administrations have made everything so regulated and i'll say i this again is you used to go do an m and a deal and get your bankers and get it all signed up and then go to the lawyers. well, now you have to go to the lawyers and say is there any chance we'll get this through

the sec and the ftc and the fcc? and it's a totally different ball game, and it depends truly what party you have been supportive of, how difficult it is to get something through these commissions and these commissions, you know, were totally controlled by the administration in charge and it's always going to be more difficult in a democratic administration and that's just the way it is. >> unless -- >> -- then at the same time people tend to flourish more under a democratic administration. it's one of one and one of two. >> or i was going to say maybe with trump's vice presidential pick he said lina khan is the best person in the administration so that m and a isn't quite so friendly. let's tiptoe away from politics and talk sports, tillman because there had been reporting about the warriors trying to sell a chunk of the team and cnbc has said that does not appear to be the case. if anything, sports valuations

keep climbing, but we've talked quite memorably about this a couple of years ago, just wondering how much higher can they go and who can afford to keep bidding on these valuations and i don't know if there's anything new you would like to say on that front? >> i go back to what i said and created a laugh. you can't be a middle-class billionaire anymore and buy a sports team, and i think that's why you see in the nfl right now starting to allow a certain amount of private equity to come in, to compete with everything else. i see all of the deals that come out there, you know, from sock tore basketball to baseball to football and it's hard to sell a minority partnership to these people because remember, when you start talking about teams that are just $4 billion, a 5% owner now is $200 million and not to have a seat at the table owning 5% is different from when i was a 5% owner of the rockets

and had a million dollars 30 years ago and so you didn't expect a seat at the table, but $200 million is still $200 million, and so it is a problem, i believe. these new tv contracts are going to continue to help and here's another one that i've always said is you have a lot of these super, super billionaires who aren't interested in owning a sports team, but because they would rather try to save the world and this and that and they just have no desire, but you know what's happening now? their kids and their grandkids do want to own a sports team, and so all of a sudden people that had no interest whatsoever and i'm not going to get into names and i know of three acquisitions just in the last 12 months where they either bought control of the team or bought a huge minority interest in a

team. so -- so i do think they're going to keep going up but for different reasons now. >> that is fascinating. >> we haven't each talked about private equity. >> they'll have to bring new players in the nfl like they have -- tillman, thank you. >> now the nfl -- the nfl is allowing private equity supposedly in the next few months. >> that's the rumor, right? you can only imagine. you have to bring new buyers in with the middle-class billionaire. no matter how much the kids like the teams you can only go so far. >> exactly right. >> thank you for making the time. >> thank you all. >> be sure to mark your calendar for cnbc's game plan summit in los angeles. it will bring together leaders, visionaries from across the sports and entertainment world. to learn more and register scan the qr code on the screen or go to cnbc.com/gameplan. >> we'll have more when "power lunch" returns after this commercial break. the dow is down near session lows.

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♪ welcome back. it's time for "three stock lunch." up here is at&t where the markets are telling off. the telecommunication company is selling off. revenues came in shy of the mark, so, doug, what is the trade on at&t at&t. >> it's a hold. it's a solid yielding company, but really, we think it's had a bit of a run, and you probably should be comfortable holding on

to it, but we certainty wouldn't add more. there won't be a time they beat subscriber addition by the number this quarter. it was a phenomenal quarter, but it's fully priced for a el he com. >> how about seagate, doug, after stronger than expected results. it's up 85% in the past year, doug. >> yeah, i think that's why we're very much take your profits, take the win, and head for the exits here. the operating margin went past 30%, it seems like the street has that continuing. we generally don't think operating margin in this business can stay that high. how is a chance to take your winnings, and find something to invest in. >> i know meta is a buy for you. calm back when we have more breathing space. thank you for joining us, doug

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welcome back. this is a nasdaq xom posit index down almost 3.5%. if it stays this way, it will be the worst day going all the way back to 2022, certain the worst of the year. if you look at the loser, it is tesla, trade desk, super micro computing, and roper technology. the dow laggards, microsoft, visa, intel and apple. then with the s&p, it's some of those names as well. lamb weston, tesla, and more. >> and you can trade it back to

alphabet warnings. the yield curve to see short and yields dropping, and i wonder how much of a headwind this is for big tech. >> immike santoli's thoughts. thanks for watching, everybody. "closing bell" starts right now. all right, kelly, whether you want it or not, welcome to "closing bell." i'm mike santoli in for scott wapner. this begins with the giants of the nasdaq stumbling, sending tremors through the rest of the tape. another weak tesla quarter, from alphabet, taking its on the staying power, tax the nasdaq done more than 3% for the worst da