>> this is all speculative, totally. i think these are exactly the kinds of things traders are discussing, talking about who might step up, whether it might mean more dovishness and whether that's feeding into the moves and the rates that we have seen. since it is changing day-by-day and week by week we will check back in and see how it progresses i appreciate you laying out the landscape as you see it today. good to have you >> always good to be here. >> dave zervos with jefferies. that does it here on "the exchange." "power lunch" begins right now don't go anywhere. thanks, kelly. welcome to "power lunch," i'm dominic chu in for tyler mathisen today here's what's ahead. semis, the chips running red hot but starting to cool off how do you play the space? a top analyst separates the winners from the losers. speaking of red hot, energy prices have been on fire but at what point does demand

destruction start to kick in dan yergen is here with his outlook. and leading the charge the executive director of the illinois state board of investments is here. it is the top performing public fund in private equity we are going to talk markets, it's diversity push, and much more all that coming up right here on "power lunch." kelly. >> dom, thank you very much. hi, everybody. here's what's happening in the markets midday nasdaq is negative by seven points dow is up 137. paced by boeing, it's having a nice day, up around 4% the ten-year taking a breather after a run up this week 1754%. a different kind of dollar the dollar index also strong today that's something to keep in mind here here's the dollar index. almost near 95 94.4, 2/3 of a percent gain. can i telestrate you can see it taking liftoff going back 48 hours. speaking of the dollar dollar tree is on pace for its

best day since 2000 after announcing they will test product offerings over $1. that's a 16% gain. sometimes when your supply chains and costs go up and labor and all the rest of it this is the way to survive. >> adding $1 billion to your stock buyback plan adds to that as well. shifting gears to the chip stocks into the red for the fourth straight days. nxpi, semiconductor, one of the biggest drags, down 3% and a negative for the second straight session. ab bernstein downgrading the shares to a neutral saying risk reward feels balanced after starting the year on a tear. but despite a chip supply crunch that hit everything from cars to pcs your next guest says he is seeing signs of things starting to run hotter for

semiconductors stacey rags joins us thank you for being here right now. >> good to be here. >> what is driving the trade is it supply chain issues? or is it getting caught up in the macro market concerns about interest rates. >> semis took a bit of a bath yesterday based on the interest rates. but broadly, the investors are hearing news about supply could be strants and strong demand and everything else. but the mentals have looked very, very good. numbers have been going up the last several quarters by material amounts yet, what we have seen is each as the numbers are going up the multiples are going down and the stocks haven't done all that much relative to the improvements in the estimates. the reason investors are worried is we are getting close to peak.

any time you hear lead times stretching out, people worry about the sustainability of that demand and what it tends to look like on other side that's the heart -- you mentioned some of the work we did today, the nxp downgrade, this is a broader industry piece. we are looking at the potential semishipments versus end markets for automotive, pcs and industrials, a variety of markets. while everyone is saying shortages are still there, lead times are very long you are starting to see points of evidence that some of the semiconductor shipments relative to where the end markets are running as you said hot, higher than what the end markets would suggest. that brings further cyclical concerns once we get the other side of this whenever that happens to be. when you get to the other side, people worry we will have that cyclical downturn that conceivable could be just as strong as the upturn we are seeing right now given supply

and demand dynamics and how those play out. >> what we are showing right now, for listeners on sirius xm we are cycling through ab in charts, amd, semiskuktor, micron, qualcomm, intel. what is interesting stacey is all of those companies dabble in different types of chip markets. >> yeah. >> is there a specific part of the semiconductor industry that you think leads the way out? is it memory chips it is going to be wireless or cellular-related chips it is going to be gaming chips or graphics chips? what companies do the best here in the coming six months >> your first point is interesting. we have seen shortages and supply chain issues -- we have never seen something impacting the entire industry broadly across every sector. this is new. we have never had a global catastrophe kick something off like we did this time. s that uncharted

i am going to the automotive and pcs. you can actually do the work, i can get decent data on auto or pc semis and data on end market shipments and i know how to subtract you can demonstrate it pretty well you are seeing overshipments there. other end markets like in industrial and things are more opaque industrial is not an end market. it is hundreds of end markets. very difficult to track. some of these things you can see. in terms of where i would start to see weakness to show first. memory pricing is starting to come down. micron reported last night we are starting to see some of that i am nervous about pcs they have been incredibly strong all through covid. notebooks are running 50% higher than preindividual notebook cpus are 50% higher than -- than precovid.

notebook cpus are 50% higher i amnot suggest there is going to be any shortfall in automotive any time soon and i think shortages could maintain for quite a while. the magnitude of an overbuild of auto is looking impressive in terms of end markets, pcs is where i would be watching first. then we will see if it snowballs from there we have been talking about all of this from the supply side are you starting the see signs of the opposite problem, not supply shortages, but oversupply when i look at these auto numbers that you reference, you say, you know, you are overshipping auto production by 40% versus 2018 or 2019. by 30% versus last year. can you explain that >> it is interesting because the car companies are still actually having real production short

falls. whatever their buying it is clear they are not getting quite enough of everything that they need to build the cars this is the issue for most products, cars especially. you need a full kit of parts i will make up the numbers, but maybe 1,000 different types of semiconductors, if you can't get one of them, you don't ship the car. i am sure there were enough shortages that were enough to servicely impact production. we are obviously seeing that but at the same time they seem to be buying lots and lots of everything else that they can get their hands on those are the situations we are seeing i think there are -- it is not just in autos. we are seeing it in pcs, too, they are not short of cpus but they are short of other things they are kiting. i don't know exactly which parts are short and which parts are not. there are going to be pockets of shortages impacting production but broadly it looks like customers are buying this is normal behavior. normally what happens when demand the really strong, supply

is really tight lead times stretch out the typical customer behavior is to order more. more than they need. just like the toilet paper situation we had last year this is normal human behavior. that's usually what happens. what we will watch for is when the lead times start to pull back in. >> got night that is typically when we find out how much of the demand is real and how much is not. >> it is fascinating did -- we knew there was a shortage and then the hoarding makes it even worse. stacey thanks for breaking it down watching those calls, including nxpi. we were talking about some of the high flyers in tech but our next guest is focusing more on the dividend plays. jamie cox of the harris group. let's turn from the chips to -- i don't want to call it old tech but who do you like, and why >> this is all about dividend growth any company that has a dividend of over 3% we should be paying attention to in particular those that money

is going to be flowing into as interest rates start to rise novartis, exxonmobil, verizon. these are particular companies that you can own for a long time and you can also have, you know -- you are going to see these particular companies gather money as we move into the latter part of the year. >> we should emphasize, since you are looking at dividends, yes there are tech names in the mix that you mentioned but there is also a exxon. there is a 6% dividend yield there. are you afraid of losing principle or not -- not principle, but you know what i am sake. how do you think the stock purchases? could it continue to run up with oil prices but are you concerned about what lies on the other side of that >> companies like exxon protect their dividend at all costs. i am not worried about the dividend i think what investors needs to be paying attention to is the cash flow of the companies, the growth of the companies. oil prices are probably going to stay high, particularly if we have inflation

i think that particular name is safe for a while >> jamie, it's dom here. one of the things i think about when i think of dividends is the income investors, money coming in and that will be taxed at some point how closely as a financial advisory, as an investor are you watching developments out of washington, d.c. with regard to what could be future tax policy for things like capital gains and dividend income? what does that do for the calls includes for investing for dividend type players. there is no shortage of tax policy being contemplated in washington, d.c. right now, for sure but for most people, lower income people, or even average income people most of the tax changes that are being proposed are not going to impact them in fact, i think most people are going to prioritize dividends in the future as opposed to capital gains because you are going to need current income. and you are not going to get it in fixed income instruments, at

least for a while. >> a final comment jamie as we also are watching the d.c. drama. we were talking about powell's tenure at the fed. which macro influences do you think make you more or lessen tlald with the dividend players here >> well -- the debt ceiling is the elephant in the room if we can't get some type of deal all bets are off for all equities for a little while. i think that's where we need to focus. but i think that there will be an 11th hour deal. there will be a little bit more weakness in markets but ultimately they will get it right. the wild card and one of the cards that hasn't been played yet is whether or not the senate could -- might actually defer the filibuster on this, on this particular situation so i think we have to be watching very closely to see how the negotiations go because i feel like a senator like seine m&ao manchin can say, hey, republicans, if you are not going to do the debt ceiling

increase in regular order, we will just delay the filibuster on this particular topic i am not sure whether it will happen, but it's certainly a card that could be played. >> jamie, good to have you here. again, jamie cox looking at a lot of these dividend players or payers, you could say both. >> exactly coming up, warby parker's wall street debut it's the latest in a record-breaking rush of ipos the stock is currently up 13 points right now, that's 35% but is it a buy at that level? and the dollar index hitting levels not seen since last year. which names to be hit by a stronger greenback our trading nation team is on the case "power lunch" is getting started justow ept ghhere n -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪

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[ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. ♪ ♪ the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand.

we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for fifteen hundred dollars off your kohler walk-in bath. visit kohlerwalkinbath.com for more info. welcome back to "power lunch,"names like tyson, conagra, kraft hines are among the names leading. kraft hines almost 3% higher tyson almost 4% higher they are more defensive areas of the market stocks like these lost earlier in the year. coning aa, kraft, and jm smucker

still 10% off of their highs from the early half of this year, but continuing their streak. >> those consumer staples getting sexy >> who said they weren't. >> food processing. a record year for ipos warby parker the latest to go public today as a direct listing. so far this year we have seen 309 ipos raising $105 billion. 445 spacs raising $115 billion and six direct listings bringing in $53 billion that's a lot of money. but the renaissance teach tracking those particular ipos, the recent ones are basically flat on the year as you can see on the right-hand side of the screen compared to stronger gains in the markets overall kathy smith is the manager of the renaissance ipo etf. the particularer is ipo of all things, kathy. what's going on here why are the ipos lagging it seems that's not a good

sentiment for the overall market >> the resepect we have had so much record issuance in 2021 that the runs were so good in 2020 so this index, the ipo index that we run was up over 100% so it is hard to repeat that performance. the fact that the returns are holding up fairly well and they have kind of gone back and forth -- matter of fact, we had a very good third quarter until we ran into this week with a lot of turbulence over rising rates. it actually has not been too bad. and it is important because if the returns are not strong, the ipos are going to be discounted, which we saw happened in this third quarter and investors are going to be careful about what they buy this need to make money in the aftermarket trading. >> if you look at the way things are shaping up right now, warby parker is not a technical ipo,

but it is coming public in a big way. it is up 35% right now the last i checked even though it is a reference price and not an actual ipo price what exactly do you feel is the sentiment right now? are these ipo-type pops still here to stay in has the spac craze died town taking luster away from the public offerings >> i can comment on all of those. i don't think they have taken away at all because we are at record levels for ipos and the returns are still very good. half the companies are trading above or near their ipo price on average. that's pretty good there is a good reason to come in we are seeing price discernment in the market. a company this week pulled its tor ipo. investors weren't that interested in it not everyone gets the enthusiasm of washi when it comes the spacs. i think we hit peak spac at the beginning this year and we are seeing a much more modest amount of issuance even though it sems

so large when you look at it in total. that's because the returns haven't been so good about a third of the companies are trading above their ipo price, not too good, and the average return is negative the direct list vgs done all right. i want to comment on that relative to washi. we have had 12 of them starting with spotify in 2018 but direct listings have one problem. a ipo is a lockup, the reason for the lockup -- it's not good for the investors there, but for new investors, they want to see the company show performance and results before insiders can sell there is a large overhang of stock with a direct listing. and when it comes to warby, they certainly deserve the attention of investors that's a strong brand, they are a leader in direct to consumer, they have done a great job however, about 80% of the shares that are outstanding now for warby parker are able to be

sold there are some things that i would point out that maybe warby has done a good job of selling today's investmentors the rose-colored glasses because this is a company that still is going to have a lot of overhang withthe shares and also has the -- you know, it's being priced at a tremendous premium to anybody else in its peer group. i think warby is going to have to do a lot to prove the current valuation it has. >> i think that's an important caveat, kathleen, that direct listing companies allow people to sell shares right away. it is still a relatively short track record i think you said they have been around three year's time we might start to get evidence about the fact that after that shakeout, in a traditional ipo might be a few months' time, how the stock stacks up apples to apples do you think -- the issue you opponent out should only change

performance in the first couple of months for a direct listing versus an ipo, right >> right and we have looked at it over the first sort of 90 days for every one of these direct listings they all managed to fall at some point below that initial price so there's no rush for investors to come in on warby. in fact i would suggest that investors look very carefully. this is a very high valuation that warby has even though it's an exciting company. the valuation receipt now is about 13 times trailing revenue. its peers in the eyewear business trade at three to four times. strong brand names like yeti, canada goose, they trade at six times. so there's a big gap between what's happening with the trading here with warby and what the reality is in the rest of the market >> crazy to think, kelly, that this is a record-setting pace for ipos in the overall market kathleen smith you are holding a yeti mug right

now. >> this is is when gets you a 6x versus a 3x multiple i always coordinate with my guests. still ahead we will look at the names in the s&p that are way off their highs. "power lunch" is back with a whole lot more it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs. and whatever comes your way, you've got it saving time and improving customer service, that's why so many businesses work, with ibm. 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 back i'm raheel solomon here's your cnbc news update at this hour. walmart says today it wants to hire 150,000 new workers for its u.s. stores. while its immediate goal is to have enough people to handle holiday shopping, the retailer says most of the positions will be full-time and permanent. in what may be a sign it has been hard to find workers, walmart's news release sounds a little like a help wanted ad listing selling points like early scheduling of shifts. march madness will no longer be limited to men. they will use the branding for its women's basketball tournament starting in 2022. the move is designed to reduce gender disparities. chicago's mayor says she still wants to keep the city's nfl team in soldier field where they have had a long-term lease but the bears organization

signed to buy a racetrack in arlington heights to the west. they have explored options and is open to talks with the city in other bear news, in germany a first edition of an angela merkel teddy bear has sold out in just days despite a $209 price tag. they are made by hand and it take about four hours to make one. there is also a very long waiting list so fans of the outgoing cleanse lore will have to be patient, or fans of teddy bears made by hand. >> i think she has like an 82% approval rating on her way out. >> that's a heck of a build a bear >> and a nice wig. >> a wig. let's get a check on the markets. dow and s&p particular picking up steam, nasdaq is higher after dipping into the red a third of 1% gain, dow is up 236. as stocks try to rebound yields

are lower. rick santelli is here to explain it all out of the cme. >> it is interesting because some people might call today a breather i would say we are going a long stretch with no pullbacks in either case we settled yesterday around 1.53 plus, we are now a little bit over 1.54 tens and 30s are indeed higher yield, lower price look at the two-week chart of tens right after the fed meeting we started to accelerate. today will be a fifth session of higher yield prices. let's add in the dollar index. two weeks. could it shadow box even higher. this is textbook as we move higher the dollar is moving higher. one fly in the ointment, maybe 57.6 of the dollar index which is the euro currency is the bigger reason. let's go to the charts this is the highest close for the dollar, one year

last september when you look at the euro, it looks to be on pace for its lowest close in 14 months and much of the strength in the dollar really is attributed to some of the question marks about policies in europe, not necessarily vaccinations which they have improved on but the fact that their central panik may make other signal banks like ours look more hawkish and finally, 1.416 trillion is the big number today that's the fed's long term cash parking lot balance. dom, back to you >> all right, rick santelli with the bond report. thank you. here are some of the stock we are watching at this hour video game names among the leaders in the s&p 500 after outperforming amid yesterday's declines those names, though coming off several weeks worth of weakness, ea, take two, and act vision all up in today's session. next up, lucid motor soaring, beginning production of

their air sedan. calling it the tesla, slash, ferrari of new ev makers for more g to cnbc.com also is pro. ahead of "power lunch," when do rising prices reek havoc on the energy market. plus, we will speak with the illinois state board of investment head about supporting business owners in this community. and a crypto conundrum an s.e.c. decision around the corner could spell either doom or gloom or bitcoin or possibly create a massive buying opportunity. we will check into all of those stories coming up after this

[ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. ♪ ♪ the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60%

lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for fifteen hundred dollars off your kohler walk-in bath. visit kohlerwalkinbath.com for more info. welcome back the energy markets are close forth the day. let's get out to pippa stevens at the cnbc commodity desk for a check on the oil prices and other big moves fromnat gas. >> the extra for november

delivery is down 6.33% at 5.51 yesterday it traded at 6.32. now it is down 13% from that level. moving over to oil, prices are once again retreating, although a relatively muted move for wti and brent, both of which were in positive territory earlier today. u.s. oil is down half a percent at 74.92 brent crude is also down half a percent at 78.70 part of that downturn is thanks to crude stockpiles rising by 4.6 million barrels last week according to data out today. analysts were calling for a draw of roughly 2.5 million barrels we often hear the cure for high price is high prices morgan stanley thinks we may be there. the firm said $80, which brent hit yesterday is where demand destruction kicks in but added it is fiendishly

difficult to estimate. >> attendishly natural gas prices up 25% over the past monday. those prices causing a crisis in europe where supplies are already at a record low. london is seeing long gasoline lines because of the shortage of truck drivers. could it happen here joining us to talk about the idea of demand destruction is dan yergen i should mention, dan, i was reading the nat gas part of your book it's fascinating to be reminded how recently we turned our import facilities around to be export ones. are we going to have to turn them around again? >> i think there might be some tefrt do that. but it is clear that the growth of u.s. lng growth has been a stabilizer in the world economy. think what it would be without it we are now one of the big three

exporters of lng it is remarkable how quickly it happened you were talking about demand destruction and how it is fiendishly difficult to see what to expect for the winter if it is going to be a cold winter, global prices are going to go up and the u.s. is part of a global system we will see the prices here, even though natural gas is down today, it's still a high price compared to what people have been a customed to. >> dan, i am dom here. when you look at nat gas prices -- i am asking as a lay person, as a consumer of nat gas. my home is heated with nat gas, especially in the winter time. what is there about the u.s. global construct right now that is keeping the gas prices as high as they are i remember the conversation with fracking a decade ago was that this is why america would be energy independent and we would have fuel costs across the board. why are we talking about oil and gas inflationary pressure this

is time around >> dom, it is true for a number of years we have had really low prices that's why hundreds of billions of dollars have been spent building factories in the united states what happened now is that global supplies are really tight. a lot of it has to do with china, which lng exports are up 25%. european, and everywhere, inventories are low because of a cold winter and of course we have lost some natural gas supplies from the gulf of mexico all of those things have come together and whether you are looking at natural gas on a global basis or you are looking at coal on a global basis there is no give in the system in a sense we are seeing a consequence on a global basis of constrained investment going into the energy sector, particularly at a time of rebound. and then you have weather and other things that happen and that's where you are i mean, in europe, the land of

price of lng is six times what it was a year ago. >> it is a massive massive problem. here's a question four is it a coincidence that the price of carbon is at an all-time high or not is it policy choices of decarbonization sthar contributing to the unattractiveness of investment in fossil fuels? if that's true, have we got ourselves to cap in trade but without the low cost energy alternatives to protect consumers. >> a lot of investors are leaving the sector you are not just looking at oil and gas. certainly coal is really starved of capital the replacement isn't really there. there is an imbalance. i think you are getting at this, kelly, between what the policies and the directions are, and really in a sense where investors have been going and what the reality of demand and supply is.

i think the question i am hearing around the world in energy -- in the energy business is this just -- are we going to see repetitions of this pattern over the next several years whenever we have strong economy and then we get prices high like this, we pay for it in turn with lower economic growth for a while. >> sure. and especially -- it is really regressive low income -- we were talking about demand destruction, $80 a barrel that demand destruction is to the coming from the high income folks. it is come from the low income ones if their demand isn't elastic it is going to come elsewhere i think some sort of policy response is going to be the next plank of this. dan, we will leave it there. we appreciate your time. >> bye-bye. >> dan years agoen joining us from ihs market. coming up on show, paying top dollar, the consider that index nearing its highs right now. but could it be bad news, yes, bad news, for some stocks? our trading nation team will discuss coming up next

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welcome back to "power lunch.

i'm seema mody a rapid rise in the u.s. dollar, reaching its highest level this year against a number of currencies, putting pressure on emerging markets that own or have a high level of dollar denominated debt silver and gold also trading down in recent days. let's bring in the trading nation team, mat mark mutin and boris loss isberg. there are many ways to trade the thorough but you have got your eye on gold? >> i do. i a mean a dollar index is clearly on an upward trajectory driven by the rise in the ten-year rates that's helping the dollar index now go to multi-month highs. matter of fact, the euro has broke ten 116 level, which it hasn't done since 2020 overall, i think what is happening, one of the biggest vulner vulnerability a victim of this dollar rise is going to be gold. it trades on real interest rate yields, as nominal yields

improve that's going to put further downward pressure on growthl goldman. add the fact that gold is seeing competition from crypto. you have a combination of more negative yield and competition from crypto. i think it goes below 1700 and disappoints a lot of the gold bulls. >> mark, i know you have your eye on the industrials specifically caterpillar you say the stock could go down to 173 tell us why. >> hi. i think a lot of these industrials tend to get much of their revenue from overseas. when you look at stocks like caterpillar, they have over 06% overseas revenue as the dollar has surged since the month of may, over the last four months, industrials have been the weakest sector. they have been down over 3%. my own technical projections suggest the dollar gets up near 95.35 between now and the middle part of october. it could cause the industrials to have a little bit more selling pressure over the next three to five weeks.

caterpillar in particular i do view as being a compelling buy near 193 to 195. but it does look like it needs a little bit more on the downside. and we are still in very much a weak seasonal time 173, 175 is the first area then 167 i do like buying dips. for now, trends remain negative and the dollar is still on a persistent up trend. it is right to be a little bit patient. >> we will be watching those names with high international nature thank you. for more, go to our trading nation website or follow us on twitter. it's hispanic heritage month. all month long we are spotty looing cnbc contributors, business leaders and our own employees. up next we will speak to the illinois state bort of investment cio will supporting hispanic-owned businesses. first, let's here from louis barajas. >> the financial advice i would give to young latinos is that

they focus on saving and investing as early in their career as they possibly can. after 30 years of working with clients that are just starting out that's the key to success. there are no crystal balls use your common sense. financial planning and savings is not about a product it is about making sure that you obtain your most meaningful life goals. >> announcer: and now, the latest from trading nation.cnbc.com. and a word from our sponsor.

folks, volatility is back. we saw a number of stocks hit new highs in september and then fall sharply from those highs.

here's what we did, because kelly i know how much you stocks stock screens. we looked at the s&p 500 and we wanted to look at mega cap names, they had to be $100 billion in market cap or higher. wed looked at how many had 52 week or record and then ranked them by how far they've fallen after they hit those highs. so, just to give you an idea of what it looks like the biggest drop out of all of them is adobe. >> surprising. >> so mega cap software company that might've been caught up a little bit more in some of those big kind of valuation concerns tied to interest rates if you take a look at facebook another big drop on the highs that we've seen just over the course of the last couple of weeks, a big one there as well if you take a look at the overall picture, some of the names that we care about the most in terms of the name and size of it facebook apple alphabet five of the biggest stocks in the market right now. anywhere from 6.5 to 11% off their recent highs and all of them hit just in the

month of september so, kelly, it really does show you if you're wondering why the market has pulled back as much as it has been, it's because the big names are the ones that are dragging us down >> netflix relatively unscathed. a >> oracle, you mentioned netflix, look at oracle as well. barely a blip with regard to the valuation concerns there so certainly something to watch as well. >> they must know something we don't. ceo celebrities, economists and investment managers are attending the latitude conference in san diego to discuss the impact of the latino community economy. contessa brewer? >> hi there. we have the chief investment officer with me. we have some breaking news here. you're just off of a vote that is going to change the way the

board does business. explain it to me >> i'm so excited to talk about it so today we've had initiatives within the diversity policy. but today we're tapping into one of the most lucrative parts of the financial industry by advocating for inclusion of minority and women-owned investment banks it's a trillion-dollar industry. at the end of the day there's fees to be paid, and it'll create a more competitive environment within the investment banking industry. >> okay. so that vote passed, the resolution changes, the policy changes moving forward but you have already had a track record of choosing diverse money managers here. i'm looking at the returns over ten years the return on investment in private equity, 16.1% net of fees. the top-performing public pension board in the nation in this particular arena. why does it matter what do diverse money managers and now investment banks bring to the table that help you see a

return on investment >> i'm so proud of our board and staff on our commitment to diversity. but it's showing you that there's really strong performance to be had there. we've seen advantages. the top ten performing private equity funds that helped with that 16.1% return, two of them were minority-owned private equity fund managers you'll be missing out on opportunities by not having a broader inclusive pipeline >> what are the hurdles in any sort of public pension board trying to get this kind of return what are the hurdles in finding diverse money managers, diverse investment banks >> there are artificial hurdles most of the time you don't have enough assets under management or you're a first-time fund where it's truly a liftout from a large bank at the end of the day or you don't have the right technology or insurance. so they're artificial hurdles. if you're intentional you're source some of the top managers. >> what kind of metrics are you using when you choose how to allocate the investments

>> so performance is key so we want to see a persistent and strong track record generating alpha especially if we're going to be paying active management fees at the end of the day. you're getting the top tier firms by broadening the network. we're getting access to the best at the end of the day. >> the performance is one thing. what happens if you choose money managers or you're choosing an investment bank and they're not performing up to the metrics you expect >> as fiduciaries, we want folks to meet our investment objectives if those aren't met they're terminated at the end of the day. so, you know, it's about the numbers. strong performance is critical for the pension funds in illinois, let alone in the country. >> well, congratulations and i know you were really hoping that this vote went this way. and so congratulations on the outcome of that vote >> thank you so much >> all right, dom, kelly, i'll send it back to you.

>> thank you very much coming up, what threat does government regulation pose to cryptocurrencies we'll hear elon musk's thoughts on the matter right after this new projects means new project managers. you need to hire.

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welcome back, everybody. here's a look at bitcoin down just about 1%, trading around 41,000 and change. it's down 15% over the past month though as concerns are rising about coming regulation here's what elon musk said at

the code conference about what government intervention could do to crypto. >> it's impossible to, i think, destroy crypto, but it is possible for governments to slow down its advancement >> so what should the u.s. government do? we had gary gensler on earlier, s.e.c. chairman. he was calling it the wild west of finance what should they do, if anything >> i would say do nothing. >> okay. they're not saying that. >> yeah. i mean, i would just let it fly. >> cryptocurrencies tried to stage a comeback with bitcoin briefly hitting $42,000 today. definitely off that mark, and it's still struggling to break past a resistance level of $45,000. and for those who own bitcoin, it looks like you got diamond hands. a report shows that the number

of bitcoin long-term holders has hit a new all-time high, over 80% of bitcoin circulating supply is now being held in long-term wallets. what about those big guys who are hoarding all the coins well, the number of wheels any wallet with more than a thousand bitcoins is dropping but the value in those whale wallets is increasing, aka, more bitcoin in fewer hands ether, which is ethereum's native token also lowered today. you got top rival cardano, solana, which is really the only bright spot you're seeing. and it's known to use less power. they see a huge upside for that. >> true. i think we talked to that analyst as well. and it was interesting to hear

at "delivering alpha," orlando talking about -- >> specifically about bitcoin, too. >> very just didn't sound controversial at all, just loves it >> everybody's just dropping the bitcoin bombs. and the esg -- >> which i'm sure makes some of the original holders uncomfortable just to see it go this mainstream. >> but it appreciates. >> christina, great to have you here that's it for "power lunch" today, everybody "closing bell" starts right now. and welcome to "closing bell." thank you, kelly i'm sara eisen stocks trying for a comeback after tuesday's tumble but it's been an up and down session. dow and s&p are near highs >> atreasury yields resuming muc higher after a dip this morning. that's weighing on the nasdaq. defensive names seeing the most