welcome to "power lunch. i'm melissa lee. fed chair jerome powell tries to hold the line. bank stocks are booming. much more on the new rate reality and shake shack doubling down on the digital push with uber eats. the ceo will join us "power lunch" starts right now

welcome to "power lunch. while the nasdaq sinks the dow hitting a record high. dominic chu has more on today's action. >> it feels like a decade ago talking about tech and financials being the key parts of the market to drive things. you heard melissa mention 1.754% that was the high intraday so far for the 10-year treasury note yield go back to january of last year for the same level that rate shock is driving a lot of action in the market so far right now. take a look at the parts we mentioned. start with what's happening with technology ap apple shares off 2%. these are off the lows of the session. these four stocks represent a very large chunk of both the s&p 500 and even more so the nasdaq 100 with the decrease in growth stocks and technology driving

things look at tesla, zoom video, paypal staggering moves but seeing the pullback from the highs over the last several months. now the financial side look at the particular moves, especially in mega cap bank type names. wells fargo up 4%. i want to focus on these two right here record highs for jpmorgan and goldman sachs set today and check out the regional banks, etf has hit an intraday record high of today. kre up 130% over the last year both of these are some of the biggest gainers in training today and svu financial, record high for that. watch the banks, the tech stocks back over to you. >> thank you the spike in bond yields

weighing on the nasdaq is it safe to buy tech let's bring in yana barton and jack adlin good to see you both yana, you co-manage the opportunities group fund 40% is technology. the top ten holdings are all in the tech sector or in this sort of higher valuation bucket this is as of the end of the last year. how are you adjusting that portfolio with the rate environment if you are >> thanks for having me back a lot has changed since year end and the biggest underweight is in tech and not because we don't like tech. a couple of top names mentioned constitute almost 20% of the index so we are finding opportunities in other areas of the market and right now we're actually overweight industrials,

financials and health care a couple comments on nasdaq if i may and this rising interest rate environment we took a look at what happened to the technology space and other previous rising rate environments and technology on a cumulative basis does the best relative to every other sector serve instances in the last 30-year period seeing the rates spike and technology does the best and nasdaq actually outperforms. it is important to note that nasdaq is over 3,000 positions across $20 trillion so that top heaviness that you were alluding to is what's driving the underperformance this is the time to be active, not to go away from tech investments. >> clearly you're active in terms of shifting that allocation within the portfolio. i want to get to jack here because one thing stood out and that you think rates should be

higher suggest the 10-year closer to 2.7. what does that mean on a practical basis? you think that the 10-year yield has that much more to run? >> yeah. thanks, i can't pen point exactly what the target number is we think it is higher. if you look at the copper/gold ratio it's had a great predictive power over the 10-year to the upside and downside, too, going into 2020 and even prior to that i think because that is saying 2.7 that does suggest rates go a fair amount higher considering we see this one-two punch if you will of stimulus and pent-up demand and cash on the side loons to crescendo into a lot of growth in the second half of the year with pricing pressure

so the problem with technology which we love, they have become a victim of their own success. when up 30 times trailing pe ratios suggesting if rates go up by 1% that's going to push the fair value pe ratio from 30 to 20 which means that earnings have to offset by 50%. 50% growth just to keep prices where they are and to me is a head wind for growth stocks and a much easier time for sectors that have higher dividends, a much lower earnings yield or lower pe ratio where most of their earnings and dividends more up front in the early years. >> so given what jack just said and what you were saying, how do you go about in the growth strategy combing through tech? i look at pager duty reporting

earnings last night and beats and everything but down nearly 5% still today are there certain lenses you look at the stocks at to see if they're just more reasonable or opportunities? >> absolutely. what he is saying i totally agree with which is over the long term valuation matters and looking at the makeup of the market and the underperforming cohort of the market the majority is in the area of the market with price to sales in double digits, 20, 30 times sales which we all know can't last forever so you are seeing this reset of stocks that did exceptionally well when we had to pivot to the work from home environment and the companies enabled that pivot but now you have the cyclical recovery on top of the tail wind so i guess the bottom line is to continue to ride out secular tail winds alongside stable

opportunities and it is easier to do so in areas of the market that are not stretched in valuations like health care that continues to sell at 25% discount and financials selling at the greatest discount on the next 12 months pe ratio so i think we are in agreement and within must be active and investing in the companies for the long term. >> thank you both. appreciate it. >> thank you. despite fed chair powell's best efforts to calm the markets the 10-year yield rising to levels not seen since january 2020 and this morning strong manufacturing data from the philly fed but jobless claims, as well. as fed balances employment and inflation how hot can the economy get before the fed has to raise rates let's bring in steve liesman and rick santelli to discuss will the fed's hand get forced

eventually >> i don't know. i'm not thinking about raising rates if you really want to know an inside fed joke here's the thing fed chair powell, i have to take him at the word, thinks we can get back to the low unemployment rate we had and you have some 9 million jobs below where we were in february. 3 million or 4 million people dropped out of the workforce he sees the real rate closer to 10%. wherever that point is powell and the fed believe we have a long way to go before we get there and see that the issues of inflation for example in the philly fed off the charts thinking those are temporary and not related to a longer permanent troublesome inflation dynamic coming from a wage driven inflationary spiral. >> that's all nice and well, steve, but the more dovish fed

chair powell is the more he gets a green light from the bond markets to get the yields go higher people just don'tbelieve him o they believe him to the extent that the fed lets inflation run hot. it is willing to stay there in that hot inflationary environment and bond yields can go up, go higher. >> yeah. no not only that, once again you really hit it. the real key is no major pullbacks. the curves are steepening. even the short data maturities, a 2-year note close to 17 basis points today, that would be the highest yield close of the year for 2s so it isn'ting on the long dated the entire curve is moving higher and steve's right break evens crossed over very important we can make it so much easier.

why are investors doing this they know the fed can ramp up 80 billion purchases a month. they could ramp it up. think of the numbers in the beginning of the pandemic months but here's the key the key is, it really doesn't even need to be about inflation. see? it's almost that we're getting diverted to pay attention to this and the policy regarding 2% he sounded great the issue is, rates are too low. after everything we have been through and all the manipulation, they're too low for the risk/reward parameters that are flashed in front of investors so it's just icing on the rates are going higher we don't care what you say cake. >> steve, just a few days ago we're hearing the investors say, i don't think that the 10-year will go above 1.6, the yield,

and stay there here we are. 1.7 plus what if the fed can't control this ovement and we have all of this reaction from a lot of stocks we were just talking about what does the fed do then? >> i think powell yesterday may have given a green light for yields to run higher and really not strongly answering the question i asked him about whether or not he liked the idea of controlling bond yields, interested in it and whether or not he wants to do it. he sort of danced around it in a way that suggested it is not really going to happen and created a one way trade there and i think part of the reason that you had this rise in yields as he didn't answer nitd a strong way saying policy is appropriate for now. tools are the tools and suggested to use it any way and gave the green light for a one way trade there. there is a level, jon, that

brings the fed in. i don't know where that level is i think it's somewhere north of 2% if you have an economy that's going to grow 6.5% as strong economic growth of massive amount of stimulus coming out it would be really weird if bond yields weren't higher so there's a piece of this that makes absolute perfect fundamental sense. >> yes that is true rick, we on "fast money" had an interesting conversation with former dallas federal president fisher last night and he made this point regarding transitory inflation and the notion that inflation can be transitory and when companies have inflation they have pressures. 3m said this yesterday that they see the cost of goods like materials rise two times faster than expected. when we see those moves, companies raise the prices and do they take them back do they say, no, we are going to

cut the price by 5% because materials have gone down unlikely the notion that inflation can be transitory is misguided here the implications for the 10-year yield could be pretty large. >> there could be some transitory issues in the measurement process that the fed uses but i completely agree with richard's comments because what he is really saying is that from a business perspective if you're monitoring all your big purchases, lumber prices in a house, how crude oil affecting plastics and textiles those prices stay up how they figure into the ultimate calculus of the federal reserve, there's the transitory issue. i believe that prices are firm won't be take backs and shouldn't put that as the lead issue. i still contend that steve

couldn't agree more. the economy's hot, hot, hot. rates will go up and the fed between a rock and a hard place because he can't say anything -- it's a natural occurrence. go on. >> we pay the fed, rick, to be between a rock and a hard price. if companies raise prices to a certain level and they stay there that's not inflation that's a rise in the price level. inflation is the rise of growth. you could have a one-time rise in the price level and not inflation. that's a transitory thing. >> okay. >> let's put that to a poll to the american people and see what they think about that. >> you got to pay more, it feels like inflation >> right doesn't go up anymore we're all good i agree with you. >> steve and rick, thank you so much. coming up, goldman sachs had a record high as rates move higher and while that's good for

business it is hitting employees hard we have a special report. plus shake shack saying it will deliver nationwide in a deal with uber eats and that's paid off the stock is up. we'll seek speak to the ceo later this hour. much more "power lunch" straight ahead.

welcome back financial sector at all-time highs with 27 components hitting 52-week highs today. junior annualests at goldman complain of a crushing workload. analysts quoted saying my body physically hurts all the time and mentally i'm in a dark place. i can't sleep anymore because my anxiety levels are through the roof joining me is banking reporter the way wall street can churn through young entrants into this space is kind of legendary put this in context for us how much of this is because of the pandemic how much is what you would expect during a booming time >> hey, jon. nice to be with you, man it is true that it's both. this is always the case on wall street, certainly for the decade

plus that i covered it which is that it's sort of a meat grinder which is you think of as a pyramid and thousands of junior analysts start from college and hopefully do well in academics and be seen as a promising person on wall street. they get sucked into the programs and it is an indoctrination, a win knowing out process in which if your pain tolerance isn't high enough and can't survive the 100-hour work weeks maybe you don't get to associate and so on and climb that ladder. some aspect is timeless and sort of a hazing process on wall street and some aspect is the boom and updating the story on cnbc.com the epicenter of this first year analyst revolt as i call it is the tmt group, technology, media and telecom and as you think the epicenter of this ipo frenzy.

>> how much of that old system is still relevant? do they need to revamp it? programmers in silicon valley don't get treated like this. the work is hard but there's more pampering that might happen in facebook or at google at least during normal times is this necessary? or is it some throwback the like fraternity culture that filtered through to the banks >> perhaps more of the latter. some of this is just momentum from the way things have always been done and particularly if you're a first-year analyst with goldman on the west coast on the tmt team and you are in a culture where vc money is free flowing, go to the startup and spend some of the day playing paddle ball or whatever. it certainly feels as though -- sitting in a spot waiting for emails from new york and asia and if you're the first-year

analyst it feels unnecessary i think the real difference is it's always been that way but now that goldman sachs has a ceo who's on social media and leads by example it is harder for them to say, okay, we can't really -- we can have the ceo on instagram and social media and then it leaks to instagram and ignore it they know they can't do that and hopefully working toward making their lives better. >> i would never say things should exist because that's the way they always have but i would imagine people went through the meat grinder, kalcame out sayin that's the price you pay to be at goldman sachs and to get to the next level and these guys are just being too soft. >> i've reached out to people and in a certain cohort, the 40s

or 50s and maybe at the peak of the career on wall street this is how you rose, you rose through the meat grinder as you say and it's just a part of the process and like a fraternity, they pass that on. they hear it the quotes that jon read at the start of the segment, if you take them on face value, you really have to be hearing that people are potentially risking their health we talk about february was an incredible year. incredible month and almost equivalent to a full year in activity so there's some element of this which is a frenzy, perhaps a misallocation of bodies in areas that needed it but need to adjust and hopefully through combination of moving people around and doing things sensibly relieve the pressure on these poor people.

>> yeah. in this economy, talent has options. thank you. >> thank you. we did get a statement from gold man on this reads in part we recognize that the people are very busy because business is strong and volumes are at historic levels. people are stretched thin and that's why we're listening and taking steps to address them. speaking of spacs, the stock of lordstown down. we'll hear the shocking comments from the ceo next. march is women's history month and spotlighting the contributors here's courtney gibson on getting more women in leadership roles. >> in the u.s., more than 50% of the college educated labor force is made up of women yet women still only hold 25% of leadership roles and less than 5% hold the title of ceo as leaders, we all need to

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lordstown motors down. hindenberg saying it believed it misled invest or thes of demand calling the claim that it's got 100,000 preorders fictitious here's what the ceo today phil lebeau today. >> we queried them, we have robust interest and they're letters of interest. you can't do more than that in this stage so i don't think anybody thought that we had actual orders. we just -- that's just not the nature of this business. >> the company's saying it's coop rating and expects to be in production of the electric truck in september as scheduled. shashs down more than 40% in fact past month in the time in which the research report was released jon? >> not everybody can be tesla.

lordstown one of many companies to capitalize on growing demand for electric cars but storm people love the loud cars. is the road big enough for both? we have the latest numbers from lamborghini. >> jon, record profits in 2020 over 7,400 cars delivered last year, that despite the fact to shut down the factory for two months during covid. all the super car makers right now going gangbusters in the global wealth boom look at shares of ferrari up 50% this year but the big question over the cars and the profits is what their future looks like in an ev world. lamborghini doesn't have a single electric vehicle in the leanup and its ceo told me that that shift to electric is going to be a big challenge. >> at the end of the day, we

have to look forward to what is going to happen in five to ten years from now and how this will change our way of looking at these type of cars and we have to anticipate also a change of mind of our customers and the enthusiasm. >> what lamborghini does have is this, the first-ever hybrid. it is the most powerful, fast ericsson lamborghini produced and the reason is in addition to the classic engeneral it's a lithium ion super capacitor that charges and releases energy faster than a battery and goes 0 to 60 in under 2.8 seconds and cost you -- this car's starting price is $3.6 million. i know you're about to order one but it is already sold out

back to you. >> is that your living room? doesn't look like -- they let you out of the house to do this? that's a bullish sun does everything have to be electric are they leek watches? maybe people don't want the lamborghinis to be silent and electric. >> it's the law, jon you look at california, europe they love that sort of feel of the classic engine and the laws are changing and lamborghini and the companies have to change and put money into r&d to something that right now the customers don't want but eventually they will and look at tesla, 0 to 60 in under 2 seconds, this is the lastest at 2.8 how do you compete that's going to be the challenge. the world is changing whether some people like it or not. >> all right

robert, thank you. ahead on "power lunch" watching the markets the nasdaq at the lows of the session. we are watching oil sinking into the close. much more on that straight ahead. shake shack is going digital. the chain launching a delivery service. the ceo will join us next. digital sports network overtime paying players $10000,0 all this when "power lunch" returns. and in an emergency, they need a network that puts them first. that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders the emergency response network authorized by congress. firstnet. because putting them first is our job.

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welcome back here's your cnbc covid update. a region in germany will resume using astrazeneca's vaccine now that europe's drug regulator deemed it safe 4 million doses of that vaccine will be shipped from the u.s. to neighboring canada and mexico as part of a loan agreement dr. fauci pushing back against senator paul's claim that people are no longer at risk of covid-19 after recovering from the disease or being vaccinated. today in a heated exchange fauci said i totally disagree with you. >> what studies do you have that people who have had the vaccine

or have had the infection are spreading the infection? isn't it just theater? >> no. it is not -- >> the vaccine and wearing two masks. >> no. here we go again with the theater. >> and starting april 12 all illinois residents outside of chicago will be eligible to receive the covid vaccine as long as they are 16 or older chicago has a separate a allocation and that's the difference there. the dow was up 200 points hitting an all-time high and now given up all of those gains. the nasdaq sinking, at the lows of the session tesla down 5%. peloton and zoom video both down oil is sinking as the commodity is closing for the day let's go to dom chu again.

>> a confluence of factors higher value of the u.s. dollar. you had some more bearish inventory data this week and the international energy agency saying the world is amply supplied with crude. gasoline also taking a hit and energy stocks the worst performers so far today. if you take a look at the action within the cross currents of this particular market, look at crude. over the last year, negative prices one point a big move higher over the last year and giving the gains on the headlines. energy stocks, check out overall with the really laggards in the energy sector. marathon off 6%. chevron outperforming down about 2.5% here and over the course of the past year remember that the

energy sector spdr doubled over the last year and double back energy is up over 400% keep an eye on energy, a real outperformer giving back the gains today. >> thank you. shares of shake shack down today but up in the last year on surging digital sales. the burger chain adding 2 million customers in 2020 with digital sales of 60% in the fourth quarter and looking to expand the growth announcing it's partnering with uber eats kate rodgers joining us now with shake shack ceo randy garutti. >> thank you great to see you. >> good afternoon, kate. great to be with you. >> melissa ran through, you're launching this in-app delivery service with uber eats and working with the major delivery

apps why was it important to bring this in house? >> it is quite a year and more fun this week flipping the switch a year ago today the business was probably 20% digital, 80% in person overnight that flipped to 80/20 and today we are about 60 and we call it shack track. for a long time shake shack has been known as the great burger experience with human beings and we love that but we also know that we haven't been terribly convenient and launching delivery as a service in the app great partnerships with shack track and third party delivery and adding convenience to what's been a great shack experience is the path of today and been an acceleration and amplification of the evolution of the brand which is exciting and really the thing that has kept us on track

regaining momentum every month since the pandemic started. >> you mentioned shack track which is the digital fulfillment service, something you think will be a part of the company's business as people return to eat on premise how will that work >> we believe that people will come back. i'm here in new york and we see things better in new york city there's no doubt to take sometime but we believe people will gather again and what is amazing is how many people said, you know what? i want to use your channels and pre-order on there pick it up outside curbside delivery for you and then the first-ever drive throughs and we are excited about and adding that digital convenience. the digital sale this is year are up three and a half times. not including delivery channels in the last year as you said earlier we have 2 million new guests using the

channels and i think what we're aiming towards is having people get out the friction of what was hard before, ordering and paying and annoying stuff from the restaurant legacy experience and be there with friends and take it to go or back to the office or wherever you're headed is a game changer for us and excited to build this out and show the guests the way to use shake shack. >> i want to ask about margin head winds and reporting the quarter end of february you talked about near end terms costs. how are you thinking about the costs? passing them on to the consumer? how limited do you think they are in terms of time are they for the rest of the year inflation, that is really the focus of the markets these days. >> it's year 20 for shake shack. everything we do we do with a

long term lens we took 2% price this year probably taken more and been skefr conservative about that for a long time. this is part of why this delivery through the app is going to be set at the same in-shack prices. i think there's margin pressure. delivery is an expensive business we have to live and work with covid that's expensive i'm proud of the team. we have regained nearly three quarters of the profitability. you saw we announced we had a really strong january. little bit harder february with the storms and everything we saw but you can see people moving about the country.

weather is getting people in a good mood so we are hopeful for what will be a better summer we have a long way to recover yet but i think the tools set shake shack for the long term giving people -- i think all of this sums up to the power back in the guest's hands you can get the shack. that's what we have been trying to build for the last few years and come to fruition now. >> we know the suburban shacks outperforming. you said you want to be everywhere which market is the bigger potential for growth in the future >> we want to do it all. next week we hope in the heart of midtown near bryant park. i think there's an urban renewal to a point that's super exciting and learned about the suburban shacks with half the company and that have done quite a well.

those have recovered much more quickly and expect that to continue and i think the suburban business buoyed by the formats to get there with more ease the first drive throughs in orlando, kansas city and suburban minneapolis and will learn a lot through that and what is that after it is about increasing the addressable market opportunity over the long term we think the formats and tools will meet people where they are and continue to be -- we fully expect new york city shacks and those urban brands where we come together to be busy once again soon we are looking forward to it. >> great we look forward to it, as well thank you so much for joining us today. >> thank you. >> thank you, kate. now let's check out the dow turning lower down about 100 points nasdaq sinking to the lows of the session. down 2.5% almost

plus shares of nike as it is ready to report after the bell more on that and the markets on "power lunch."

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stocks sinking to the lows of the session let's get to bob pisani on what's driving this action bob? >> melissa, a lot of this looks technical to me. remember we are in a paradigm shift this week from covid being the primary worry for the markets to now interest rate rises being the primary worry and that's creating moving and in stocks. when i say technical here, 3945, about half an hour ago, the lows of earlier this morning. when we hit that level there was a volume spike in the etfs that trade a lot like spy and we took

another leg down i think intraday traders said we won't be rallying and might as well get out want the show you the tech names i follow semi and big cap for a general a area of the mega cap most of the big cap tech names were flattish on the week. there was not huge selling this is a first time this week to see the notable selling going on what we are seeing selling this week is in the thematic tech etf area investors love to put money in ark funds, cloud computing, clean energy founds, cloud computing etfs when they start thinking i'm going to not put as much money into certain areas it is the thematic tech areas to go into

quickly and they're especially weak today energy, oil has essentially stopped at 65 and come down from there and down again today so there's a little bit of game out there that this is the top for the energy play. it's had an incredible run been the market leader people ts might be the top in energy for the year that's a very hard game to play. remember, it's only 3% to 4% of the s&p 500. i'll note the banks here still holding up very well a lot of new highs in the banks. of course that's the interest rate and the reopening trade in general still doing very, very well so a lot of confusing trading this week as the essential narrative, covid, switches to interest rates that's got a lot of people trying to figure out where we should go next back to you. >> interesting to see financials hold up. maybe no surprise at all bob, going back to the idea of the thematic etfs selling off, there's a lot of overlap

there's overlap with the nasdaq 100 and the types of people who invest in these etfs and who invest individually in the stocks underlying them as well are we at a point do you think where we're in a vicious cycle where selling begets selling we saw this a long time ago with the biotech and biotech etfs and it feels like we're seeing that again. when people are getting out of tech stocks, it's triggering more selling with those etfs with those stocks as components. with a lot of these etfs that overlap in components. >> yes you can get the etf tail wagging the dog. that is investors don't so muc i'm going to buy micron, i'm going to buy the etf associated with semi conductors and if you really look at the volumes in terms of overall stock trading, you'll see that's the case etf volumes, it varies, but it could be 30% to 40% of overall volume that you're getting so, yes, there is a component of

the tail wagging the dog don't kid yourself ultimately at some point values matter investors have been pushing up any kind of thematic tech, particularly clean energy tech for eight months now and it's about -- at some point people will just say i'm not sure that these numbers really -- these prices really reflect any future value. >> hey, bob, you watching the vix today? it's quite a little spike there, now above 21 is that something to keep an eye on >> i wouldn't worry about a vix over 21. i'm rather surprised given the quick spike down it's not 24 or 25 no, i wouldn't worry about that. i think what we're seeing is a really beautiful little rotation there's a little bit of a question about value in big tech trading desks are telling me -- you know what i'm hearing, bob people wanting big tech with multiples under 30, guys a lot of big tech ain't there.

>> yeah, yeah, not really close. all right, bob, thank you. we're going to have more on the markets right after this quick break.

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welcome back nike out with earnings after the bell the company emerged as a powerhouse during the pandemic digital sales climbing 80% in the three months to november can nike continue to deliver in its recent quarter nancy, this has been a big winner in 2020, but can it continue to outperform in an environment where the economy is reopening and consumers could potentially pivot away from ath d leisure? >> that's the question the margins in this company have been improving the sales and demand in china has been solid and so one of the things that we'll be watching is will the margins continue, how is e-commerce doing. nike direct was up 30% driven by the nike digital that you cited at 80% last quarter. and overall the company was growing at about 9%.

so for us, it's a bit lofty at a multiple of 47 times 21 earnings and a relative price-to-sales ratio near historic highs. but it's in the sweet spot of where robust consumer, well healed consumer meets digital so we'll be watching closely. on pullbacks it becomes more interesting but i wouldn't be chasing it here. as you mentioned, it's up over 100% on a trailing one-year basis. >> is that a concern for you trading at 143 a share here? >> yes, it is. the stock is expensive on a p.e. basis, also on a price-to-sales more importantly however, i've got to admit on a technical basis it does have some potential here. the stock if you look at the chart, it has bumped up against the 147 level, right around in that area, four different times. this is the fourth time actually that it's bumped up against that level. so if it's earnings report can be a catalyst for a further

upside movement, that will give it a nice higher high. the reason why i highlight that, even though the stock is not oversold, it's kind of in a neutral area, maybe slightly above, but it's not overbought and certainly not as overbought has it has been at recent highs so it's a key junction a break above 147 and it will run. >> and shares are trading down 1% right now matt and nancy, thank you. we also break down the big moves for banks online >> seema mody. just taking a check of the markets, we had taken a leg lower so we're watching very closely as we enter the close with rising rates really having an impact, particularly on the tech strayed here. the s&p 500 down by 0.9 of a percent but the nasdaq is feeling the pain, jon, and the high valuation of stocks are the ones >> some of the ones that have run amazingly over the past 12 months, twilio, square, snap,

they're suffering the most today. even a name like roblox which just went public down 8%. >> even apple is down more than 8% this year at this point but i was taking a look at two stocks which really sort of, i think, they are really at the cross section of the markets right now. general electric and netflix general electric, the outperformer as we've seen this rotation into industrials in anticipation of the opening -- the reopening of the economy is up 24% this year netflix is down. take a look at their forward p.e.s, they're very similar. at this point in time you're reaching a critical decision in the marketplace, is it worth it still to buy general electric at this price, because we've seen that strong rotation into industrials. have we pulled forward a lot of that, or does this rotation continue as interest rates keep going higher hitting tech stocks so i think that sort of captures it all in terms of the dilemma. >> interesting bets on a day like this. i like to look at what's bucking

the trend. or in tech stocks or connected to tech, verizon, oracle, ibm, viacom so a little media, a little old database that's what's higher. >> that's a motley crew of stocks, that's for sure. jon, it's been fun thank you for watching "power lunch. "closing bell" starts right now. >> welcome to "the closing bell." i'm wilfred frost along with sara eisen a rates-led divergence dow almost flat, nasdaq sharply lower. a spike in bond yields is once again fueling a sell-off in tech apple down 2%, tesla down 5% on the other side we're seeing a rally in bank stocks, value outperforming growth but energy is down big. actually the worst performing sector as we speak and jobless claims came in a bit worse than expected, but some reopening plays in retail, entertainment, industrials are hold