the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪ good afternoon, everybody. welcome to "power lunch." alongside kellie evans, i'm titile tiler -- tyler mathisen.

the jobs reports coming weaker than expected. the dow is down 900 t nasdaq down 2.8. the dow is back below 40 thousands, and now up 4% on the year, believe it or not. the s&p and nasdaq falling back to levels from late may or early june. it's only the second. bond yields are plummeting this week as weaker economic data leads some to believe the fed may have to get more aggressive. the ten-year yield in particular is down sharply. it's not just data and rates troubling the market. apple is slightly higher after its results, but amazon down 10%. that's a couple billion in value. much more on all those names is coming up. today, big market sell-off, the nasdaq down nearly 3%, the

dow off about 900 points, about 2.25%. cnbc contributor and i-fi ai ron asanto you say a bad moon is riding, homage to -- >> hope you got your things together. >> do you see this as a longish period of correction and adjustment? >> not sure yet. i think i'm going to mix a couple metaphors, including credence, the olympics and a couple other things, the fed has not stopped the soft landing yell, but the question is what didn't they know and when did they know it, a watergate

allusion. >> what didn't they know that would have led them to -- everything. >> stocks are correcting, earnings guidance has abysmal, especially for consumers. and what may be a regional conflict in the middle east, whether it's crude oil, whether it's gasoline, heating oil, natural gas, all of these are coming down amid concerns of the u.s. and iran going to war potentially. >> so the question is, what the hell are you waiting for? >> i think they should have do it july, maybe even earlier than that. >> how do you react to that, keith? is it a sort of what are you waiting for here. >> well, i gotta tell you, i'm all with ron on thom one. to my own credence, i'm playing in a traveling band. i believe the fed has been wrong

all along from the get go. the psychology has changed. that, to me is significant. i'm just going to look around and did some shopping today. let's talk about intel. its numbers, down 21% today. keith, i think of intel, and you know what i think of it? i think of general electric. >> oh, you know, it's very interesting you mentioned that. we just had that discussion in our office this morning. the company is struggling to remain relevant, which is unheard of for people who grew up in the generation where i did, where it was a household name and could do no wrong. >> this company was like general electric, ron, on the mount rushmore. >> including guest, microsoft, cisco systems curb. >> did they get the mojo back?

>> keith says no. >> they're not competitive in the sense that an nvidia is, or even an amd, in fact they were fighting with days ago. it's been a wholesale shift. i don't know. i know jim cramer and carl, and david faber were talking about some analysts questioning whether or not intel could be a going concern. i think that's a bridge too far, but -- >> that tells you how far we have come. >> when you start asking those questions, yeah, it's not good. >> ge has completely broken apart. >> exactly. keith, you want to button this with any thoughts on what you are buying? >> intel is one of these stocks i will stay away from now at all costs, pun actually intended. i went after apple, microsoft, palantir, you know, i'm going to look to some other names that have been hit hard. opportunity is usually made on days like today, you just don't

know it until the rear-view mirror. >> keith, one of the questions we talked about, nvidia, and your love for it over the last couple years. is this a moment of doubling down on that? and if you think nvidia at 140, you must love it at 104? >> well, i have no problem buying it, but i'm playing to a longer-term perspective. ron mace a great point. you have to be calm about it. the game is not necessarily over, but it's underway. if you are worry about what happens in the next 24 hours, it's kind of a problem, but that's not my viewpoint. i'm looking at three, four, five years. >> ron, you look at what seems to be happening with the consumer, these are the ultimate consumers stocks. >> and then they're flagging here, and they're admitting it, too, with their forward guidance, this is a difficult, more cautious consumer, and it's across the entire spectrum, saying they're pulling back.

>> welcl now -- >> almost. >> absolutely right about mcdonald's what about wingstop? shake shack? mastercard is not seeing any weakness? life time is a different story, but i feel like i'm not getting them. >> probably segmented, so middle and lower-income people are feeling the pinch. if you look at lvmh, acrossed pond, is doing horribly. >> china is a big part of that. >> and i don't think china is getting any better. beyond what is happening domestically, all these markets, when you look across the entire spectrum of commodities, bonds and stocks, you're getting global weakness or global recession worries, not just domestic. keith, final thought. >> don't forget, kelly, a lot of the businesses you talked about are credit card driven. we know spending can be shifted.

what we really don't know if the spending is occurring or debt is piling up. so you got to stick with the quality names here. >> keith, a favorite credence clearwater song? >> "traveling man." >> "up around the bend." >> good choice s. all right, guys -- >> i'm more of a led zeppelin guy. >> and what did they not play with zeppelin? rick santelli joins us from chicago. mohammed el-erian was just treating a 100-basis point move in the two-year is a worrying sign. what would you say? >> i would say that i would have expected some worrisome signs, considering everything we've been through, how long they kept rates low, how they have used their models, and trusted all

the data given that seasonality is different from pre-pandemic. i'm not surprised. as a matter of fact, if you look at the one-week chart, we closed at 438 on the two-year. it's a huge move, he's right. i just don't think it's surprising. here's what's really interesting. i continue to say that these guys, on a big trades that everybody has talked about, working quite well, is that steepener. it's hovering under minus ten right now, the two-year least inverted. investment. x is flying at the highest level since march of last year. that's a good segue for this guy. his, jim. >> how are you, rick? >> if i real, we kind of warned viewers last week, that volatility could get juiced, especially some of the sector rotation. picket it up right where we left out. >> buy it when you can, not when you have to. the reality is there's a rotation going on.

risk in the market, ultimately it's a zero-sum game, but when risk gets concentrated, with the rotation like we've been seeing, it catches certain people off-guard. that's what we're seeing, along with poor vol supply and that becomes a self-fulfilling pro prophecy. >> we were talking about it with regard to mortgage rates. they're moving lower now, maybe to 6.5, maybe lower than that, but what can that do? what do we think of? >> it's ame rick, we're running a demand-side economy. when the rates come down, much like in december, you can see a pretty quick, you know, reaction to gdp and to growth. the problem is that it's a slowing economy, dramatically slowing, and it's a wealth effect, with the market coming

down reflexively slowing the market. we'll likely go ahead demand, driving inflation, and driving pressure, and the feds will have to deal with its own medicine, but housing is huge if up to try to spark life into the economy. any final thoughts? >> i would watch powell, what he has to say coming up. i think they were very vague for a reason in the lastary. i think they have an adjustment to wait, to make this a reflexive machine. they say they don't manage markets, but markets are money supply. the more the market goes down. the more probable we have with liquidity. >> absolutely. flynn who doesn't think we have both sides is probably wrong. tyler, kelly, back to you. try to have a good weekend. don't look at your 401(k). >> indeed. buy some bonds -- i'm kidding. rick, thank you. payroll group way below the

185 estimate. the unemployment rate jumped to the highest in nearly three years. cory, what stands out at you? we've had six hours to digest it. what are your conclusions? >> if we had a jobs report a few years ago like this, the response would have been something like, meh, but now, you know, with this jobs report post-pandemic, here we see people running up the tower and ringing the bells. i think there's two things to know from this jobs report. first, the window to a soft landing looks smaller this week than last week. we're likely to see a conversation about the fed cutting rates in september, the question is how much. the second thing is we've seen the labor market slowing down going into the summer. if you were banking on riding a resilient mark, you probably have to rethink that now.

>> when you say the question about september may pivot away from whether or not they're going to cut rates, but by how much? what would a half a point cut mean? what would it signal? >> so, right now, i don't think the fed is necessarily signaling whether it will be 25 or 50. what we should expect to see is there won't necessarily be a big bump from the fed cutting rates now. a lot of that is already going to be priced in, and businesses are taking stock ahead of time, so we're not necessarily going to see a pickup in the labor market. >> but a half-point cut is not priced in. >> for some folks they're probably pricing it in now. if we start to see that getting priced in later on, because there might be some signals coming from jackson hole at the end of august. by the time we're in september, actually looking at rate cuts, that could be priced in and we could be having a different conversation. >> how weak do you see the labor

market being and getting? >> right now the labor market is showing some vulnerables. that's very clear. there's some very particular vulnerabilities that i'm paying attention to. one, most job growth came from government and health care. those areas still have room to grow, so it's not like we're expecting a negative payroll number anytime soon. hiring hasn't picked up, and we're not going to continue to see unemployment remain contained if people can't find work. >> so, on that front, cory, when we talk about what the fed should do here and whether they in retrospect -- td is now calling for a 75 base point cut in september. some others are now at 50. many who didn't think we were going to get a cut are not at 25. what would be the best outcome for the economy? >> so, i think there's something that's been very much overlooked

we have as to keep in mind. it was flagged in the statement this week. they're looking for surprise stability over the long run. what would be a particularly worse outcome for the fed is if they cut rates and then they found themselves going through another tightening cycle. for the fed, that might be the worst of all worlds. hiring is slow, there's not a lot of churn, and then in order on top of that to have to raise rates again, to slow things down further, that would be a bad outcome for the fed. that's something they are really keen on. that's why they want to see more inflation data, but i think that is kind of tilted now, they're paying closer attention. >> that did seem to be sort of the subtext on wednesday with chair powell's commentary about it. as you look out toward the end of the year, how many rate cuts are you expecting? >> well, right now i wouldn't be surprised to be a couple rate cuts, one in september, one

potential in november and december. that seems to be where the fed has been signaling recently. unless we see something change, i would think that's the path the fed will follow. >> kory, thank you. still to come. apple topping analyst estimate. that's a reversal there of the past. as we head to the break, time for today's power check. leading declines on the s&p, that would be intel. off positive side, godaddy holdings. that's your power check. we'll be right back.

(vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. while i am a paid actor, and this is not a real company, there is no way to fake how upwork can help your business. upwork is half the cost of our old recruiter and they have top-tier talent and everything from pr to project management because this is how we work now. (♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪)

surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com ryan t. writes, "moving is stressful. investment objectives, can you help me take one thing off of my to do list?” ugh, moving's the worst. with xfinity, you can transfer your internet in just a few taps. just a few easy moves. did somebody say “easy moves”? ♪ ♪ oh no. no, i was talking about moving your internet.

this will move the internet. ♪ ♪ ooh, ooh. -let's keep it professional. professional dancers! -ok! stay connected during your move with the best in home wifi. easily transfer your services in the xfinity app. bring on the good stuff. big verdict for apple. not just that it's positive, but

with the market take, it's up almost 2%. let's got to steve kovach with the details, and why it remains somewhat immune here. >> after hours, the stock was down as much as 2.5% so, a big reversal there. apple is growing again after sales declines in five of six quarters the company says to expect slay grown for the quarter we're in now. services is picking up much of the slack. it says it will have another double quarter, everyone's looking to the iphone 16 cycle, of course, which the street believes will see a big upgrade boost. tim cook on the results, and asked him what demand signals he's getting following the ai announcement. he says it's not clear until

apple ai actually launches, but he said it would make a compelling reasons for folks to upgrade. china is a big down side here. sales were down of 6.5%. chinese customers tend to bike with cool new features, but it won't be easy for apple. the government needs to give its blessing first. i asked about cook that ai roll-out. he told me, quote, we're working on exactly what we will do there. there are definitely regulatory questions we have to respond to, and we're working constructively on those. kelly, it would be a while before we see the ai really hit the global markets, but at first just here in the u.s. >> indeed. peer are asking, a they sift through the -- what is the safe

havens. it seems like apple could be one of them. >> that's where we're seeing. look, it was a good quarter. they beat on the top and bottom line showing growth gun, just coming out of the covid, the economy situation in china is still dragging them down. but the services resurgence is helping a lot. the app store is just on fire right now, plus so many subscriptions going through. i would note, i just asked the cfo yesterday on these earnings, too, about the regulations in europe, the digit at markets act that would impact the services busi

businesses. amazon is getting crushed. let's get to kate rooney with more. >> so, amazon is the biggest -- so e-commerce has missed in almost two years. had came up slow. andy jassy on the call with analysts called the consumer cautious. it's giving them a bit of an edge, and the concern from high likely switch ing and rising ca ex intensity. they joke, where have we heard

this before? the cfo said consumers are distractd about i the news cycle, the olympics, for example. and then the concerns about the consumer slowdown, they did outweigh some of the cloud growth. now amazon expect investments to be higher in the second half of it is year to support aws, infrastructure as well as ai, guys. >> make it simple for me, kate, in terms of amazon's real core businesses. one is consumer, two would be

aws, and three would seem to me the growing future of ai. the apple prime, streaming, so forth -- >> there's also advertising a growing part of the bull case, but it goes back to apple origins, emorse -- you can think the grocery stores and normal retailers, that's what they're known for, when most people interact, i have the prime subscription business, and their whole bid has been we want people to stay on the platform, they're shopping with us, but that helps the ad business, they're buying these scrippss, and they call that the flywheel, and aws sprung out it, and now it's the higher-growth side of the business. you can think of it as two parts, but i'm not sure it's a perfect analogy, but if analysts

and investors, you saw this with big tech, they have to really nail it on the core business. they're going to have to nail it. it's line parents, if you do your homework, we'll give you a hall pass, spend big on ai and do this cap ex. that's what they were not able to accomplish in the quarter. >> i love that analogy. >> didn't stick that landing particularly. >> that, too. >> thanks, kate. >> thanks, guys. after the break, intel sinking big time after missing on guidance, cutting workforce and cutting the dividend. we'll break it down, next. don't go anywhere. ♪ ♪

♪ ♪ ♪ ♪ ♪ ♪

ga, the advanced form of dry age-related macular degeneration, can irreversibly damage your vision. it can progress faster than you think. when ga threatens your eyes, take a stand. slow ga with syfovre. syfovre is an eye injection that was proven to slow damaging lesion growth over 2 years with increasing effect over time. it's the only fda-approved treatment to slow ga in as few as 6 doses per year. don't take syfovre if you have an infection, or active swelling in or around your eye that may include pain and redness. syfovre can cause serious side effects, such as eye infection and retinal detachments, severe inflammation of vessels in the retina which may result in severe vision loss,

wet amd, eye inflammation, and an increase in eye pressure. most common side effects are eye discomfort, wet amd, small specks floating in vision, and blood in the white of the eye. tell your doctor right away if you have any side effects. every moment counts—act now to slow ga with syfovre. ask your retina specialist about syfovre. welcome back to "power lunch." shares of intel are having their worst day since 1974. joining us now is evet.

he said they're not equipped to compete with no easy quick fixes. it's great to see you again. it's not like down 26%. the shares were down 40% going into this, and it's been i think on, like, a four-year slide. >> thanks, kelly. i think it's a mix of both industry factors, and then some company-specific factors. from an industry sigh, yes, the demand for ai is very strong, whether it's in the enterprise environment, or telco, or industrial or automotive, it's not -- it kind of exposes them to the cyclical factors, so there are industry forces at play, but in the specific case of intel, i think in some ways, it's a classic case of innovators dilemma. they did nearly everything right for decades -- but i think in

hindsight made them miss the mobile cycle and made them miss the move in the industry to a foundry, modern way, either you're focusing or manufacturing or design, and i think they missed the whole cycle. so they have suffered from a combination of both industry and company-specific factors. this think will not turn around very quickly. we do think they have to wait until 2026 to see any tangible signs of progress. this is any business school case waiting to be written, because there are many, many companies that have had this exact phenomenon that you described happen to them. what is the fix, or is there a fix here? >> so what i think intel still has going for them, they have a very strong brand name. they have a lot of very good

u.s.-based manufacturing assets, even though they're not up to par in terms of the technology that taiwan semi has. there are one or two steps behind, and then, of course, they have a strong position in the enterprise, a strong position in the pc market. so intel does have a few things working for them. the challenge is the spending in the industry, right, is the demand is soft, and a lot of spending has shifted to ai, requiring a very different kind of investment. i think nvidia had the vision a decade ago, and has been working for it on a decade. i think it's hard not just for intel, but for everyone else to catch up. we think intel stays a player in the industry, but the time for it becoming relevant again, i think that time will be difficult to get back to. >> i was just going to say, this

is a good reminder, if we hadn't had ai, what the cycle would be look like. what were the gross margins at peak the last few years, and what are they now? >> at is peak, over 65%, now they're 38%. >> wow. >> so goes gross margins, so goes intel. gross margins are a very important indicator of differentiation of execution. nvidia's gross margins are 70%, nearly twice of intel. and those are after -- so that's the extent of the distance that nvidia has put between themselves and intel. >> you listed some of intel's various assets, the thing they have going for them, but how do they deploy or use those assets

to get back to where they would like to be. what is the path out or forward? >> sure. i think some of it is macro in nature also that, you know, there's a reason that everyone is clamoring for rate cuts. the broader environment is not that strong. as they get to the cyclical pickup, for instance, the end of life for windows 10, so many enterprise c.i.o.s might be encouraged to upgrade their laptop. that could help intel. maybe there's a geopolitical situation in taiwan and klein, maybe intel could grab more market share. more recently they saw, for example, when there was a strike -- when this was an issue, a love the laptops were able to come out of that issue quickly, so it has assets that work for them, but the

big-picture thing is they're trying to simultaneously compete with the best designers on the planet and trying to keep with the best manufacturing entity, and trying to go around both marathon and sprint at the same time, is very difficult. >> they have come back from something like this before, or is this just completely different? >> i think it's tougher this time around. the irony is that the pc business, as much as, you know there can be recoveries, because they felt they had been manufacturing, a lot of their chips are being manufactured by taiwan semi. as a result, there's a higher unput cost, and their even fabs are not -- it if you look at intel's q2 was in line, the

business mick was gross margin because of this shift in where it's being proud. >> fascinating. thank you for illuminate the problems today. we appreciate it. >> thank you. will housing find itself on a firmer foundation? we'll discuss that ahead, we'll be right back. 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. energy fuels. ♪♪ [inner monologue] in this gig... you get comfortable being uncomfortable. ♪♪ the enemy is always adapting... deepfake: hey handsome. ♪♪ [inner monologue] ...always iterating. ♪♪

ed. welcome back, everybody. tensions had sent out higher earlier in the week. we also heard from exxon and chevron today, reporting results, painting two very different pictures. >> we did hear two different things. exxon was higher in the session. it's since given up the gains. starting with exxon, a top and bottom beat, 40% above expectation upstream, the

downstream was a little weak. and that was overshadowed by the upstream strength, report production in both the permian and guyana, but not the same here with chevron. we saw a bottom-line miss for them. the u.s. upstream was good, but the international upstream missed expectations. they gave a lot of reasons for why, chug the lack of tax benefits they had last year, and lower natural gas realizations, but the elephant in the room is hess, though earlier in the week, the kay will not be heard until may of 2025. if that deal goes through, the earliest would be two years after they initially announced it. that is a huge opportunity cost this, a huge unknown, and guyana's stake was seen as a

beacon for chevron. if that's called into question, it's hard to see how chevron could outperform here. finally, chef won is officially moving headquarters from california to texas. they already had will three quarters of their employees there, but still a pretty notable shift. they had been in california for nearly 150 years. >> that almost feels like the elephant in the room. did they go into too much deal tail? >> becky quick asked about it earlier, we've been very clear that policies that raise costs, put supplier reliability at risk for the consumers, with the economy in california discouraging investment in the energy that runs its economy. pretty harsh words. they're not the only once to leave california. >> everyone is like, eh, it's musk, but when it's something like chevron, you take more notice. kate has the update.

the pentagon said the u.s. will make changes to forces in the middle east to support israel as tensions boil over following high-profile hamas and hezbollah killings. secretary of defense austin called the israel's defense minister, and informed him of the changes. pentagon official didn't go into the details about the changes, but austin is making a decision on deploying additional forces to the region. a bipartisan group of senators introduced a mill to end the military draft in the united states. it's not been used since the vietnam war. it comes as lawmakers have disagreed about whether to add women to the draft. harvard announced the interim president will remain through spring of 2027. garver was appointed to the position in january after his proceeded saidor resigned

following backlash of her response to anti-semitism, as well as plagiarism allegations. kate, thank you. homebuilder stocks are down across the board today. could the drop in rates help spur more activity. we'll speak to an industry insider about that when we return.

okay, team! oh, thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot

bond yields are falling. the two-year yield hitting the lowest level since last may. the 30-year fixed falling to 6.4%, according to "mortgage news daily." for more on the impact andy walden at the intercontinental exchanges. refinancing has been sort of a dead zone over the past couple years. does this decline suggest that more people will get in and try and referns?

>> you mentioned it has a dead zone w6.5 range, we're up 60% over the last couple days just because of that drop in rates, and some of the highest volumes that we have seen out there since the fed started to raise rates. still modest by historical standards, bur we're starting to see it pick up. rates are back to where they were roughly a year ago? >> that's exactly right. we've seen a little over 4 million loans, and so you simply

have more refinance incentive on the rate down. how much bigger is the gap between the ten-year yield and 30-year fixed than normally? and do you see any sign of that gap narrowing which would help bring rates down more? >> it is wide, right? typically it's about three quarter of a percent wider than traditionally. it's about 2.65% as we stood here yesterday. yeah, it's actual ly and the forecast over the next year or so for the spread to reduce. that could help mortgage rates. >> this is now a follow-up to the second one, what would it take on that front or the

ten-year front to get the mortgage rate back into the 5s? >> subtract 2 1/2 off of that, so you're talking closer to 2.5% ten-ye treasury yield is what you would need. so you're going to need considerable movement down. you'll knee some compression of that spread. when you look at the 30-year rate forecast for the next 18 months or so, a couple days ago we were talking about maybe low 6s by the tail end of next year, with the lower fed dot plots after the latest meeting maybe we're talking in the 5% range as we get into the tail end of 2025. >> here's a question that should be obvious. i wonder -- sort of walk with me on this journey. are falling mortgage rates, you know, do they need higher home prices or lower home price from here? >> it's a good question. if you look at our index over the last couple months, you've

suits the market low. i think this is a needle mover, a game changer in the way the housing market moves. there's been a couple times oveo years where 30-year mortgage rates have been where they are right now. both of those times have resulted in the housing market heating back up, demand heating back up, so the supply which has been a bright spot for the market that's been rebuilding getting bought down, and so i would expect a little bit of a transition here from a cooling housing market to potential will i a little bit over the next couple months given the additional buying power folks have. >> we appreciate your time today. >> thank you. still amazing to see the 10-year printing at 3.79 right now in the broad selloff in the market. intel is lower, so are most of the chip stocks. there's perhaps a buy. we'll ask our trader which one

that is in three stock lunch, next.

(intercom) t minus 10... (janet) so much space! that open kitchen! (tanya) ...definitely the one! (ethan) but how can you sell your house when we're stuck on a space station for months???!!! (brian) opendoor gives you the flexibility to sell and buy on your timeline. (janet) nice! (intercom) flightdeck, see you at the house warming. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

welcome to the now way to network... they switched to juniper's ai-native network. and now everyone's so productive, they're operating at a higher gear... that's the now way to network at work—with real ai—putting you in the fast lane. with fidelity income planning, a dedicated advisor can help you grow and protect your wealth. they'll help you create a flexible strategy designed to balance growth and guaranteed income so you can enjoy the life you've created. that's the planning effect.

welcome back. let's close out the show today with three stock lunch. stocks continue to sell off. we're looking at some of the worst performers of the week to see if there are any bar begins according to our trader. scott nation's president of nation's indexes. thanks for playing ball today. boeing shares are down 10%. the company showing a huge decline in revenue, fewer deliveries, the new ceo. the shares down 35% this year. would you be a buyer? >> i would be a greedy buyer, putting bids below the current approximately 168 price. you mentioned the new ceo. i think new leadership is absolutely critical. it means boeing is turning the page. importantly he's a mechanical engineer by training. he's not a finance guy. he's not marketing guy. that means that boeing is going to refocus on engineering,

design, manufacturing. he's their guy. maybe most critically, he's announced he's going to be based in seattle. you'll remember a couple decades ago, the company moved its headquarters from seattle, first to chicago, because they wanted to be close to -- closer to international customers and then to virginia because they wanted to be close to defense buyers. i think it's critical they're back in seattle. if there's a problem and the reason i would be a greedy buyer, the company has 200 planes parked in locations waiting for parts for final assembly. that's going to be job one for the new ceo. >> all right. let's move on to moderna. those shares are down 30% or so in the last week. the company reported its q2 revenue beat estimates and a narrow than expected loss for the period. it did slash full-year guidance.

this one has been struggling. what do you do with it? >> this unfortunately, is a sell. to many people they were a hero of the pandemic, but as you pointed out they lowered full-year guidance by 25%. losing a ton of money. europe has announced they're going to buy less of the covid vaccine. it's about $86 now, but the price to pay attention to is the price at the start of 2020, before the pandemic was in full bloom, if you will. that price was $19 a share, so if you love what they did during the pandemic that's great, but you don't have to be along for the ride all the way back down to 20 sgla this would be a sell for you? >> yeah, moderna is a sell for me. >> let's see about micron. those shares are down 16% this week. down four of the past five sessions, but still up about 8% on the year. what do you do with this one, scott? >> micron is a buy. it's fairly priced with a

forward p/e of just 12.5. fairly well diversified in their product line. they mostly make memory chips, largely d ram chips. those d-ram chips are important in ai in that they're bundled together to create high memory bandwidth applications. a glut of memory chips that's easing and going to help micron. the only concern for this company is capex. they have to build three plants, spend a bunch of money, but i love the fact that they're solidly profitable and well diversified across the chip space. >> we have our buy. it's been a tough week. so broaden it out over the weekend what kind of homework are you doing? are you stepping in to say this is too much of a growth scare and time to get positive on stocks or time to move to the sidelines and rotate? >> lots of concern because we have slowing growth and still have a substantial amount of inflation. i'm old enough to remember when

everybody talked about stagflation. that's a concern. one thing that really jumps out at me is that we calculate and publish an index tdex, which measures the cost of crash protection and it's jumped more than 100% today alone. it's only done that six other times since 2005. so people are finally getting the message that stocks can go down. they're desperate to get protection right now. >> where would you -- if you were a defensive-minded investor, where would you go? >> i would go to consumer staples, particularly the big els names with the most pricing power. the strongest brands. because they are going to have to not only continue to sell a bunch of stuff during a slowing economy, they're going to have to do well in the face of inflation. if you're somebody like coke and the average cost of the product is $1 and you have pricing power

and great brand equity, that's going to to do really well in relation to the broad market. another one procter & gamble. same sort of setup. wonderful brand equity, relatively low cost product and the ability generally to maintain pricing power in the face of inflation. you really would have to have a strong stomach to step into the tech or ai space right now. >> only quick comment, i see the cpg consumer packaging companies disinflationary pressures but the market is speaking. coke is cheaper than a bag of chips. and then on bond yields, quickly, before we go or look at gold's breakout. >> yeah. i think bond yields, they certainly were falling on lower -- on slower economic growth but right now much of it is a flight to quality. people are just buying bonds. they're not worried about the return on their investment return of their investment. so there's a flight to quality

right now. >> all right. >> very interesting. go into the weekend after a very busy -- thank you, by the way -- very busy week. fed meeting, lots of earnings reports that have been spotty. patchy i guess i would call them. and the jobs report today. >> indeed. i will see you at 6:00 p.m. we will have live coverage. looking for it. the market selloff. "closing bell" starts right now. >> welcome to "closing bell." on this friday,i am brian sullivan in for scott. the make or break hour. you've got a big selloff in stocks. new fears the american economy may, may be ableout to roll ovea bit. the weak july numbers, another down, putting the fed back into play. some on wall street loudly wond wondering did the the federal reserve make a mistake not cutting rates on w