finance it may somewhat add to volatility and does broaden out the base for the people participating and ultimately a good thing for the overall market. >> thank you. >> thank you for watching "power lunch." >> can i wish my son mack happy birthday new jersey drivers watch out. >> "closing bell" starts right now. >> happy birthday, mack. happy birthday, mack welcome to "closing bell," everyone i'm sara eisen at the new york stock exchange monday's comeback fades. they're pacing for november losses in this final hour of trading for the month. >> i'll add to that. happy birth day, mack. i'm wilfred frost. powell signaled a possible taper acceleration more on that ahead sentiment taken a hit after

moderna's ceo said he expects existing vaccines to be less effective against the omicron variant. apple on track to be the best of the month. >> technology is faring the best of the major sectors right now we are all over the sell-off for you. guests including from allianz with the take on the fed powell comments jeff currie of goldman sachs coming up. >> first steve lies marn with the takeaways of the testimony and mike santoli with the sell-off steve, start with the testimony please. >> surprising the markets by saying the fed should consider easing back more quickly on stimulus tothe economy in response to a question on

inflation. powell saying in senate system for the fist time that the fed should consider accelerating the taper. >> at this point the economy is very strong and inflationary pressures are high and appropriate in my view to consider wrapping up the taper of our asset purchases announced at the november meeting perhaps a few months earlier i expect to discuss that in a couple weeks. >> and for the record he said it twice and wasn't a mistake all began with testimony released yesterday and powell emphasized the concern about inflation and said another virus wave for an inflationary problem if workers stay home markets have to puzzle over this every $5 billion increase ends the purchases by a month so $15 billion in may and $30 billion doubling that would end it by

around february plus or minus $5 billion. faster raises the possibility of quicker rate hikes after that. jpmorgan calling it a turbo taper taking a deterioration in the public health decision to keep the fed from doing it. >> catchy way to put it. thank you. let's bring in mohammed al erian. now fed chair powell talks a faster taper how being of a problem for stocks is that >> it is an issue. it is about time, sara, that he recognize that the transitory word was an awful characterization of inflation, that inflation is not transitory that it has to be taken seriously by the fed and that has implications for the taper he should have done that months

ago in our view. the fact that he waited to do it same time as the market was trying to understand what this new variant means for the economy is rather curious. i would have chosen a better time to do it and not mixed the two but it is about time that we move on to a more realistic assessment of inflation. >> the timing is interesting, mohammed, mbecause the market ws roiled about economic growth on this vaccine evading new variant which has if you look at the impact on the markets disinflationary and is powell trying to get ahead of inflation too late >> i'm not sure that omicron is disinflationary. i worry that it is stagflationary it will make the supply

shortages and maybe the labor shortages worse and think of it as a stagflationary wind good thing that the economy is strong enough but powell should have corrected his mischaracterization of inflation months ago this is a consistent problem. >> in his defense do you think he had to wait until he got reappointed? >> you could very well think so. i couldn't possibly comment as a famous line from a british comedy would say he could have waited for the fed meeting in just over two weeks it is curious times. >> wanted to ask to what extent you felt like the latest data on inflation out of europe is a trigger for this selling and another factor that people have

to be more aware of. >> yeah. it wasn't that much this morning. europe was lower and didn't take flight at what was yet another inflation reading that was well above consensus expectation. germany is already at 6% so this is a global phenomenon and it is not to be clear, it is not that central banks similar prove supply chains or increase la labor participation. what they can do is reduce expectations being de-anchored we have mounting evidence that inflation expectations are getting de-anchored. >> i wonder about the market implications of this if the market on a faster taper and we have more days like this

and friday on concerns of this variant, if it doesn't mat every what he says now it won't happen anyway and then forced by the market to wait when it comes to removing stimulus. >> that was the problem of waiting too long is you end up in a lose-lose situation i have been warning about this for months the markets were at record levels things were improving on the health side and didn't take advantage of that window the risk is there. remember the difference this time around is inflation, sara that's why i suggested yesterday on cnbc that inflation is a biggest threat to investors because it changes the liquidity paradigm it is very difficult for the fed to increase asset purchases to calm markets when inflation is high the inflation reading is a

major, major issue for margts and a major rigss for markets. >> how high are the chances in your eyes that regardless of what the trigger was for this latest little bit of selling that it broadens out and prolongs for so long more meaningfully of a bear market pullback >> depends on two things will the fed be able to communicate a clear path to an orderly normalization of monetary policy. fed communication of the next few weeks and months is absolutely critical. otherwise we may end up having too much market tightening and then the second issue is the new a variant. we don't know how infectious and results in hospitalization we don't know whether it evades vaccines so that's the second

issue that's critical and it's hard to answer both of them right now and why the market is so jittery >> 10-year yield $1.43 yields move south on the concerns where do you think they go from here >> so low dated yields continued to move south. short dated yields are moving north so the curve flat chbing and that's one thing that people like me looking at this for a long time worry about. the curve is starting to -- the move in the curve are consistent with the markets worrying of a fed policy mistake and the fed is a little to recognize inflation. it then has to slam on the brakes and that causes a recession. and what you're seeing the flatten of the curve is consistent with that concern. >> quite extraordinary relative outperformance of apple. does that make sense to you and

does the kind of tina argument apply to certain u.s. stocks still? >> if i ask the relative question and not the absolute, the relative question, tech is -- has more resistance to both of issues that we talked about. it is moreresistant to an economic slowdown. a stay-at-home slowdown. and we saw that in the tech outperformance last year and less sensitive to liquidity conditions you have to worry about the technicals and makes sense that tech will outperform as long as the technicals don't get disruptive. >> what is interesting today at the bottom is consumer staples, utilities. which actually tend to do better when yields are moving lower how defensively would you position overall

tech is something you favor. what else? >> i think you have to be careful here you know, the good news is that we are going to get lots of buying opportunity just the sell-offs tend to be indiscriminate tech does better than others but get a lot of contagion that goes on i think you want to look abroad. if you think the u.s. is vulnerable the american marketings in particular are going to be vulnerable there's lots of opportunities. some of them in private credit have already appeared because money is not flowing as easily to certain parts of credit opportunities so the good news is that for active investors we see tuopportunities. it is not possible if inflation is high. >> mohammed, it is great to have you, especially on a day like

tofd seeing a deep sell-off why thank you. >> thank you. >> dow down more than 600. let's get back to mike santoli for more on the market sell-off. every sector lower where are you focused? >> competencive to the downside. s&p 500 spending time this afternoon in friday's lows and unwound yesterday's highly imperfect bounce that we got as a reflex it leaves us above that level roughly speaking in the 4530 type area. technically speaking a lot of things come together right there incolliding the s&p 50 day average and attempt to pass a test and see if we can maybe find some traction in the area of friday's lows everything you have been talking about here language by the fed chair changing the complexion and

catching the market offbalance based on friday's sell-off and return quality is all the textbooks say a time to favor quality stocks apple rallying is in that mode you see they started to outperform the s&p and high beta stocks so that makes sense right here i don't think quality stocks are going to lead the next rebound rally and next bounce we get right now developing but in theory going into next year perhaps this is where we are in the cycle. the quality type equities might be the way do go and the s&p 500 is very much a quality index look at how it is hugging it there. you talked about how this new covid threat as well as some oh things are going on. here's the market's best guess over the next five years i wanted to put that there

you have a comeback. in terms of projected annual inflation. we existed in this zone right here in the mid to late -- really mid-2000s for a very long time the economy did fine it. yields were higher it seems as if the directionof things with energy prices and commodities coming off maybe a threat to growth and all of a sudden inflation is not that thing in front of you as the fed chair in a political venue felt important to make a yes, sir c gesture. >> it sounds like you agreed with me. and this omicron scrambled the idea is that what you're saying >> yeah. also saying that everything the fed chair said today would be completely non-news happening six days ago strong u.s. economy.

we don't think from's a relapse. inflation is sticking around what do we do about that accelerate the taper which is nothing but a placebo anyway and a signaling mechanism to when we may raise rates. that's the easy thing to do go back on it. the markets rebel. data changes omicron seems like a bigger threat then the words change >> mike, thank you so much we we'll see you again shortly. that slight afternoon bounce just giving up most of 45 moneys left let's get specific stock movers. julia boorstin has them.

die y diana olick is tracking that julia? >> we'll start on theater stock just they are plummeting the furthest in the space and amc shares falling 7.5%. social stocks are suffering. twitter down the most of the group. shares down 4.5% that's of course dragged down to 52-week low today following the news of the new ceo. snap down 4% and facebook now meta is now down 3.5%. pinterest which could benefit the most from another covid wave is down the least less than 1% the streamers were considered stay-at-home stocks and suffering today. netflix down nearly 3%

vimeo down about 4.5%. despite the fact that it would also benefit from a hybrid extended work situation. iac shares, a share stock in the green, up 1.5% i want to point out electronic arts now in the red. activision blizzard down over 2%. >> thank you travel stocks are hit hard right now on the omicron fears seema mody with a look at the biggest movers. >> it is too early to understand the impact on travel hotel occupancy around 61% recent weeks experts are leaning on past trends with alpha and the impact immediate. with delta vaccinations were available so the impact was less

severe by september demand started to climb back up and most recently nearing 2019 levels. the outlook for business travel is in question the most important question of hotel operators with over 30% of the portfolio in urban markets for corporate travel and the expectation is a rebound in early january. two data points to watch to get a better sense of how consumers respond, tsa check-ins tomorrow and then weekly hotel occupancy thursday at 1:00 p.m >> thank you so much for that. office demand had been improving this year and office reits are selling off. diana has a look at the sector. >> call it the best of the worst. real estate is down a little bit but as we know all real estate is not equal

office reits feelinging the hurt today with names like boston properties down more significantly. this in addition to a new report from vts showing demand for office slowed again in october second straight month. so on the flip side apartment reits, stay-at-home play, teetering between the red and green. rents are skyrocketing prologis not doing as badly as the broader market demand for way house is not going anywhere as we see retail bleed and only benefits warehouse for e-commerce wilf >> thank you so much energy one of the worst sectors today. wti crude down here to discuss is jeff currie thanks so much for joining us. is it the fears of the omicron variant pulling oil back

we started to pull back from the $85 highs anyway over the prior couple of weeks. >> there's definitely a fundamental impact to jet fuel demand given the fact that what you are seeing here is countries locking down the borders and the international jet travel is likely to wane a bit and relatively small nothing like the decline in prices i think really at the core of what's going on in terms of prices is the fact that you have a negative gamma effect going on the whole curve is shifting down the shape is in a very bullish sign i like to say that time spreads don't lie and if this curve shape is downward sloping or b backwardation it is bullish. what's driving is the curve is

shifted down without liquidity and through the strikes you get increased selling by the dealers getting shorter and works both directions and pop back up again. there's a negative effect here due to lost jet fuel demand and nothing like the prices are trying to price in the bottom line is the longer term or medium term story hasn't changed. we are still very bullish in terms of thinking about this impact of demand from the new variant. that's very short lived. this market is facing supply problems with the lower prices that's persistent and not changing and reinforces the bullish story down the road. >> and so are you banging the table to tell the clients to get long exposure to oil what's the best way to do that >> go out on to the former curve.

take advantage and then roll up. i'm not going to say that this bow of selling is over with. you go through the big round numbers. coming up to 65 on brent and go through it's $5 clips once you feel comfortable finish going through the strikes then you can have the potential for the upside but look at futures in terms of thinking about the upside here it is an oil and not the equities the equities have not underperformed like what the oil market has and likely to get more upside here and won't say it zings back up to 85 real quickly. people taking year end risk down which means a lot of people won't go back into the market until after the new year. >> two factors weighing on the overall market today there's monetary policy concerns and the federal reserve getting into faster taper and

potentially quick every interest rate increases what does that mean for oil prices and other commodities >> in general commodity prices are usually the reason why the fed becomes more hawkish there's a positive correlation of hikes and interest rates and commodity prices because it's the fears over inflation and the rising commodity prices to cause them to become more hawkish to begin with and like we argue commodities are the place you hide in in this kind of environment and it's a good attractive entry point to use commodities as a hedge for a much more hawkish fed. >> why have industrial metals held up so much better >> because if -- that's important. this was very much a covid, the new variant, related sell-off. started in jet fuel. the collapse in the jet cracks is bigger than the collapse in oil. and when we look at metals

they're not a transportation fuel if anything goods consumption goes up. if you look at the course of the last year and a half, two years, in the lockdowns metal outperformed energy. if you think the lockdowns are severe be long metal short energy as a hedge against that. >> you say to be in commodities as a hedge against tighter policies but isn't the market sending a signal that inflation is -- has peaked at least if you look at the lumber, all the commodities that we were siraned about and oil prices are way off the highs. >> when you look at copper and the metals complex which i'd argue is a better barometer to the health of the global economy you're off a few hundred bucks a ton on copper. it was near 10,000 a few weeks

ago. in terms of looking at the fundamental picture across the non-energy commodities all in deficits really nothing changed here. i think a lot of risk is taken down going into year end and you can see it by looking at liquidity investor positions we have done nothing to solve the supply problem whether it's energy, metals or the commodities but the money's exited >> but the prices rolled over. looking at iron ore down 60% from the highs a lot of prices rolled over. >> it was never part of the story and it's part of decarbonization effort in china and backing up into iron ore and excess supply. it is not a green metal. that's copper, nickel.

>> got it. jeff, thank you for your perspective. good to have you here. >> thanks for having me. >> we are down more than 600 points at the moment high growth companies that recently have gone public hit hard leslie pick weer with the detai. leslie >> the hawkish tone sending ipos plunging tend to be earlier stage growth names with little or no profits. since future cash flows are harder to predict with less of a history to point to. this is caused a sell-off with the top weightings in the renaissance ipo etf down almost 3% today and 8% over the month the top weighting in the etf is snowflake lower by 6% today.

all in the red now it's not just traditional ipos feeling the pinch spacs that closed the deals are lo lower today. these also tend to be earlier stage, many pre-revenue. guys >> leslie, thank you much appreciated let's check in on the individual market movers. shares of beyond meat and oatly at a reduced rating. increasing competition hurts the ambitions and both stocks are sufring. dollar tree among the biggest losers in the shall have after it was downgraded. the firm means growth is limited due to an expected slowdown in spending by low end consumers and declining traffic.

jim cramer mentioned dollar tree today. to learn about the stock picks and sign up head to cnbc.com/investing club. or point your phone at the qr code. >> a fda advisory panel is meeting to discuss merck's covid pill to fight the virus. meg tirrell has the latest on that and how the rest are faring today. >> so that panel going on right now we are expecting a vote from them on whether to recommend merck for emergency use authorization perhaps at the end of the 4:00 hour and right now the discussion is centering on the appropriate patient populations with pregnant women and whether it's recommended for them or made available to them there are some concerns in the safety in that population and will discuss any kind of risk management strategies that might

be needed to monitor the drug on the market because there are some safety questions about it also, of course, the update last week from merck that the efficacy suspected look as strong as in the interim look. we're seeing interesting names in the board with the vaccine names and reversing the moves we saw yesterday and seeing moderna give back some big gains from yesterday. biontech in a similar position pfizer essentially flat. novavax is up after dropping yesterday. so you are seeing the vaccine names bounce around the board right now. of course in the treatment area an i side from the anti-viral drugs you have the and body drugs and news suggests while they don't have solid data yesterday modeling suggests that omicron might get past the vaccine antibody cocktail but

their more to develop on that and regeneron is taking a hit on that news. >> on the merck pill the stock sold off lately on some concerns analysts saying the rates not as good as the initial time around and also i know no safety trials with the merck trials and warnings and things written from doctors on mutations of genes. does the pfizer pill make a difference in the decision >> it is really interesting because right now they're talking ant the monoclonal antibody drugs as showing better efficacy than the other pill it's hard to discuss a drug that could be available don the road and not yet cleared through the fda and though we know from the

clinical trial pfizer's drug reduced the risk of hospitalizations or deaths by 89% merck's updated data showed 39% reduction. they can't say we'll hold out for the pfizer data because that's not in front of the fda but you are right. they spent time discussing that safety signal and if that is an issue of causing birth defects and something to discuss how to manage and we'll see where the vote shakes out this afternoon. >> merck shares down 5 paterson -- 5% today time now far cnbc news update with rahel solomon. >> here's what's happening at this hour. the shooting at a michigan high school has claimed the lives of three people six more were shot including a teacher. the 15-year-old sophomore at the school was taken into custody

within minutes an appeals court appears skeptical of the efforts to keep documents from the house panel to investigate january 6 trump claims executive privilege but the three-judge panel seems prepared to side with president biden's decision to release the material. author alice sebold apologizes for sending an innocent man to jail for raping her. a man spent 16 years in prison. in france josephine baker receives an honor. she is the first american citizen to be immortalizes in the pantheon back to you. >> thank you let's get to bob pisani for a look at where things stand in the market and just slipped again a little bit in the last

20 minutes or so. >> i want to take a look at the sectors to remind everyone that the markets started differently. we were weak about omicron and questions of vaccine efficacy. we started off weak because they're cyclicals. these stocks been weak for a while now, many days before omicron. delta outbreaks in europe and asia so it started out in an expected way here we go again and then things got weird when powell started to testify and then the trope to stay dovish is not accurate and then that's made the day very strange tech is the stalwart holding up and basically the game's been simple not sure about covid, buy tech stocks if the fed will speed up rate

hikes sell tech. that's why everybody's so confused so you see service, salesforce.com, nvidia all down. the flight to apple no particular reason to be up and twice normal volume and everyone seems to think apple will be okay hard to explain that particular one. the fed switched gear. everyone assumed the fed will be dovish and now as an excuse to get rid of a policy which is holding on to the idea to be dove dovish and the market believes they're going to get more aggressive one thing that killed bull markets is the fed unexpectedly started to hike rates and that's why the biggest selling that you are seeing and the biggest trading volumes are in the tech

it o etfs >> thank you let's discuss what investors should be doing with chief market strategist tony dwyer great to see you as always. >> thank you. >> what did you make of the fact we went below friday's low in today's session and if that spells the likelihood of a bit more 0 of a pullback more to come >> i'll more about the conditions than the level. i don't think in the world of trading and client index funds it is hard to pick a quote unquote level like back in the day when i got in the business and the conditions that we're looking for on friday were met if you remember we had upgraded the market in october and then in november optimism near all time highs other real active money management readings and with the conditions oversold we should have a pretty good year end

opportunity given the stats that you covered so well about what happens during strong years. so it would be historically unique since 1950 for the s&p 500 to be up 18% through the end of october and negative on the final two months the median risk is 1.29% from the october close. we are now down about, i don't know, three quarters of a percent from that level. median risk is 1.29% the median gain is 6%. ours is a conditions versus risk reward and i -- how many times do people like me say we want to buy the dip and the conditions are met and of course there's something with a fundamental feeling of change? it is good to buy the dip for the year end opportunity with the conditions and the history of how the year ends in strong years. >> what do you make of what we

heard from chair powell, tony? if we get to a point where rate hikes are rushed and they arrive as early as q1 is that enough of a factor change to make you bearish or not >> he just did basically a flip flop in the last month so who's to say that can't happen again next year? constraints are beginning to ease closer to easing next year access to liquidity to the packages aren't going to be there and just be resting on knock growth and spending after you have had a huge amount of spending so i wouldn't be surprised in the first and second quarter next year to continue the aggressive taper and the outlook for higher rates isn't there why what i think is important is if you look at financials, the

banks have taken in over $4 trillion in deposits that's the money to get, being charged. under three month paper. that didn't change still about 12 basis points. right? wh what's happened to the 2 and 5-year yield, that's actually gone up so actually the yield curve that measures what banks are getting the money at and investing or lending it at is steepening versus what typically happens for -- in front of a sustained economic slowdown. >> so is that where you are a buyer? financials are worst performing for november with energy and communication services is that where you look to buy? >> my associate said the banks have the worst month since march of 2020. now that sounds so dire.

down 5% versus 21% but all the cyclicals have been beaten up. i think what's been happening that it's finally coming to the indices but it's been interimly a correction that's been taking place really since early november when the market was extremely overbought and now it's opposite day. so ultimately what it comes down to is this is a money availability question. is there going to be money for the economy to grow and investment to take place they're talking about more aggressive tapering. they're still buying bonds so the answer is yes. while you never can call a tick and don't try to i'm a horrible trader. the conditions are good for performance open longer term. >> tony dwyer, thank you for joining us.

>> thank you. >> we are going commercial free into the close down on the dow. shares of etsy falling today but the company a clear winner in the pandemic climbing more than 700% since the pandemic low in march 2020. let's bring in the ceo josh silverman that met with president biden yesterdayal at h white house. good to have you. >> thank you for having me nice to see you. >> there was some hope going into yesterday's meeting of a peak in supply chain concerns. what was your conversation with the president like what did you share >> it was a good conversation with the president first, i was honored to be there and represent small businesses and in particular the 5 million etsy sellers and our message to the president is that etsy sellers are ready to step up this holiday season. their shelves are stocked and we feel and they tell us that they're ready for the season and the data seeing supports that.

the president continued to be a strong and a vocal proponent of small businesses and does understand how important small businesses are for the economy and what i talked with him in particular is infrastructure that's important for small business to succeed in particular the u.s. postal service. 1 in 4 etsy sellers live in a rural area they can cherry pick the most profitable routes. the postal service is required to serve every address in the united states and so i think it's important that the federal government support that. the other thing is broadband infrastructure again 1 in 4 sellers living in rural areas where access is not to be taken for granted and federal support for that is important. >> you have argued and it sounds

like you every still saying that etsy sellers and etsy in general is immune to the supply chain cru crunch are you capitalizing on that >> immune is a strong word but what our sellers tell us is u.s. based sellers say they buy 95% of the raw materials within the united states and 47% of them say they buy all the raw materials from within their own state and less concerned about the supply chain this year than they were last year. the data we are seeing is that we have not seeing any unusual rise in out of stocks or rise in stores being put on vacation mode and any rise in late shipments. we are encouraged and i think it speaks to the power of small businesses and the entrepreneur

when so many things gone in the favor of the mega corporation. last year in 2020 the world suddenly needed face masks and the word supply chain locked up and took them three or four months to meet demand. sellers turned on a dime and within hours making and producing fabric face masks. this year the world needs us for cheer. >> what is the demand been like for things like holiday cheer? but other products, too, for this holiday season? are you seeing good numbers? >> so we had on black friday for example 200 searches per second. the number one searches for gifts and personalized gifts so we think people turn to etsy to find things that are personalized and made for them some popular categories is a return to in-person entertaining what does that mean?

bar ware things for having a drink together are popular family pajamas they're very popular things like table scapes so for example searches for place settings are up 72% year over year. it is around being together and with family and not a surprise and i think is welcomed. >> the market concerned du jour and having a sell-off -- >> not family jammies? >> a good one. it's about inflation right? also the market is now worried about the fed being worried about inflation and what it might do about that. i'm curious what your take is as now a major consumer retailer across this economy on where prices are headed. >> i think as a citizen of the u.s. and the world it is something to pay attention to and should be looking at it is remarkable to say etsy is

15 years old and not around in material inflation and that long since we have had any material levels of inflation but i think input prices are rising and the sellers are likely to feel that and will have two strategies really they can raise their prices and maintain their margins, competitors in the market likely do that as well or they can choose to absorb that cost themselves and have a lower margin and be more price competitive and sell volumes either would be good for etsy sellers. some choose one and others choose another but the sellers are resilient and adaptable. >> i started to talk about the stock price which has done well and about 10% or so off the highs and had a few bumpy

quarter quarters are you having a problem saying you every 0 a pandemic play which investors think have seen the peak in the stay-at-home period. >> we focus on communicating with the customers and i couldn't be more delighted with now how things have gone let's remember at this time last year the world was in lockdown covid cases wandy rere skyrockeg and few places to shop you had to shop on etsy. very few places were opening and shipping in fourth quart of 2020 etsy recorded 118% growth really astonishing highest of any e-commerce site we track with guidance in early november we said we'll grow over that 118% growth from last year and

now this year with abundance of choice they choose to come back to etsy. in fact they choose to come back to etsy even more often. i think that's because of the fact that etsy stands for something different. >> josh, it is great to have you. thank you for being here. >> thank you. >> wilfred is on etsy looking for "closing bell" jammies. >> yes. >> family -- we all get them we were talking about recently. >> we need some gifts. we are seeing news on -- leslie? >> that's right. i was able to obtain a copy of the letter to zendesk. the activism firm would like for zendesk to terminate the acquisition of momenta

the firm intends to vote the stock against the proposed transaction and mention in the let every while we prefer to work to help drive value we put the board on notice any effort to circumvent the approval process by changing the terms would be uniformly condemned and that we would not hesitate to seek board members in other words, the potential for a proxy contest not going there at this point in time. the vote for the merger is all stock deal here scheduled for february so there are a few months to figure things out here but here's a shareholder with a s substantial amount of stock and not sure on the size of the stake but indicated that they plan to vote against this deal guys >> leslie, thank you as we head towards the close a look at what's coming up in the

second hour of "closing bell." jeremy siegel will weigh in on the sell-off a reaction to fed chair powell's testimony and the taper timeline earnings from salesforce, box, hp and allbirds and then speak with the ceo of authentic brands all of that to come in the second how sur 069 show. but now we are in the "closing bell" market zone. mike santoli here to break down the crucial moments and today we have scott renz as wells fargo with us, as well mike, broader markets back down to more than 600-point decline on the dow is this all down to powell or are we still remnants of the new variant, european inflation, too? >> i think the everything. i think there's psychologically traders in an unsettled market not sure if we hit a near term

low, we worry about the growth threat from covid and not an opportunity to become dovish that's in the mix. >> quite the opposite. >> no, exactly the expectation to try to find more slack or excuse for it. now that being said, the equation didn't change all that much we do have the possibility of a financial conditions tightening in december is the one time december rallies tend not to happen so getting oversold small cap index is up from the lows in the morning. we'll see if today was cons consequential to get a near term flush out there. >> stocks were down early today on concerns of the virnt and a leg lower after the testimony on capitol hill here's what he said that spooked the market. >> the economy is very strong and inflationary pressure rangers high and it is therefore

appropriate to consider wrapping up the taper of the asset purchases that we announced at the november meeting perhaps a few months sooner. >> that was the first time talking about a sooner tape every. seen his lieutenants go there but not necessarily powell that on top of powell talking about retires the word transitory at a time when the market is worried about growth an e and seen the results of that what would you tell your clients to do? >> whether it is the variant or whether what fed chair powell said take advantage of weakness. since the last time saying that, since last time talking with you and wilf we have gotten less cyclical taken money from energy. gotten more growthy. boosted back the overweight exposure to technology and made a few adjustments because we

felt like there's risk with the vaccine. this was a surprise certainly with what chair powell said. he was more hawk irn pullbacks are opportunities. we are down 3% or so off the all-time record high in the s&p 500. we want the clients to be ready to step in we are not that far from the 100-day spread and quite a bit from the 200 day and seeing more volatility and optimistic looking forward. >> one name bucking the sell-off is apple the tech giant coming in as the best outperformer. apple had a strong month overall for november the stock higher by more than 9% and today super interesting with a sell-off on tech on higher inflation and rates fears from powell you have a sell-off on the cyclicals and the covid variant and apple is a lowly safe haven? >> underscores the fact that i

say it's not a bellwether of anything but itself. it is almost an asset class at times with these kind of company specific drivers it's got this bullet-proof balance sheet. goes in huge long streaks with leads and lags and all that being said it is not clear why it's apple and not microsoft because microsoft is the other one. it is a bond with growth and a thing where it seems like it has maybe some beaten don expectations going into this tough macro moment right now and therefore had upside potential energy beyond that i don't know why we're piling in to apple. >> tesla is positive today. >> another one that is its own asset class with a constituency and goes on the own rules basically. >> not up 2.5% apple is. looking at the big board down 700 on the dow down more than 2%. on the s&p 500 as well just going back to scott's point

moments ago i get that we are close to the all-time highs but below friday's high now and the vix spiked are those significant? >> reflecting the fact that we have a very unsettled uncertain moment the come by nation of having a lot of house money built up through huge gains year to date and not just the indexes but individual stocks and the impulse to try to lock that in, reduce risk and potentially harvest some tax loss offsets in the weaker stocks at work today. i don't think that anything beyond what we are seeing on the screen is really telling us anything it's all right in front of us and this is an idea where we have this -- a lot of volume to sell at the close. just came in another leg down in the indexes and we'll see if that's enough of a purge to get people feeling

like we have accounted for the known unknowns right now and see if things bounce from there. >> retail names hit hard today let's get to courtney for details. >> retail etf xrt down about 3% compared to the broader s&p 500 down 1.7%. spending showed strength in department stores over the holiday shopping weekend stocks are the other direction. dillard's with a downgrade nordstrom down 6 kohl's by 5% online apparel players dropping fast after missed expectation just represent the runway shares down 8%. revol down 6%. also specialty stores down lower. gap down victoria's secret down

bed bath & beyond shares down 9.5% wayfair lower by 7%. back to you. >> thank you scott, where are you positioned? how are you positioned within the broader consumer space >> we have talked a lot with our retail analysts here just about the supply chain disruption and they have been surprised how much inventory a lot of these re retailers ended the third quarter with and optimistic to have items on the shelves to buy and that was a big bounce so there's going to be demand a lot of these retail names is caution with the inventory situation but the overall consumer discretionary sector is neutral there. but for us this is a good not a great shopping season. we want to have exposure there

and a full allocation of that particular sector. what's going to be the situation here when it's all over and done with is that it will be a good but not a great christmas selling season. >> we have three minutes left of trading. near session lows on the dow down 660 down 700 closing out the month. looking at the gains and losses for the month the nasdaq is higher nasdaq 100 up almost 2%. the dow down 4% for the month and the s&p in the middle down 1% this market has been so confused about the leadership like a week ago it was almost buy the financials and technology stocks. powell renominated things will be hawk irn and then today where the trade does not work at all. >> the story lines whip saw the market

mul multishifts all year bonds are beating stocks year to date like a 20 something percentage point spread. there will be less of a -- not talking about rebalancing at the end of november and people try to have a cleaner slate in their portfolios heading into a new month right now and i think it's why up 22% or 23% with this sense that nobody's gotten it figured out and caught the twists and turns and probably okay to keep the wall of worry in place tell us about the internals. >> not bad as earlier in the day. volume split on the new york stock exchange it was more than 90% downside volume for a while and less than that and still very brutal if you look at 4.2 billion on downside stocks and less than half a billion on the

upside take a look too at credit and keep saying it is acting up relative to governments and that's the price of etfs starting to underperform the last couple of weeks relative to equivalent treasuries. something to watch and could erode the support of equity valuations if it is worse. right now it is points in the summer volatility index above 27. still high lower than the recent highs but shows you still a pretty unsettled market lots of bidding for protection. >> another almost 5% knocked off the price of wti crude let's show you where we stand. the s&p down 1.8%. looks like to close near session lows the dow down 632 at the moment every dow stock is lower but apple. salesforce is the biggest drag on the dow taking 77 points off

the dow ahead of earnings in a few moments. nasdaq is lower. tech is out performing nasdaq down 1.5% that wraps up what is a down month for the month of november. down almost a percent for the s&p. almost 4% for the dow. nasdaq higher on the moby a third of 1%. everybody lower today on the close. ♪ welcome to "closing bell." i'm wilfred frost with sara eisen and mike santoli we're on earnings watch. a few moments from instant analysis of the numbers from salesforce, box, hp and from allbirds scott renz is with us and jeremy siegel professor of finance joins the conversation, as well. i will come to you, first,

prof professor siegel for your take on what the fed chair said if you read that as a meaningful change and what it means for stocks. >> not only meaningful, it was long overdue remember the fed doesn't want to shock people at the meeting. it softens up the market and what you saw today was we're going to go to a faster taper. i'm sure that powell is getting an earful over the last seven, eight weeks about what temporary and what are you doing about the inflation. i think he and the other fmoc members in telephone conversations have said we have to act faster and he's doing the proper softens up of the market for that faster taper on the december 15 meeting. >> maybe -- is it too, too late where maybe it is not necessary

anymore, especially if we have the new variant to evade vaccines and the market down ahead of the news earlier today already? >> i have been on your show and saying way back six months ago, nine months ago that they should have ended taper that there was too much. money liquidity, stimulus and had to be pre-emptive. we will have the inflation we will have and better late than never but i still think inflation will be with us for much more than a year and accumulate than the fed thinks right now and going to be even more hawkish terms in 2022. >> scott, for anyone looking overnight at the portfolio what is the number one sector pick that they should use this latest sell-off as an opportunity to top up on?

>> let me tell you, we are overweight communication services, industrials, financials, technologies look at the ones hit hardest in this look at chart points for the s&p 500, the 100 day, the 200-day moving average we want to buy this market we want to putt cash to work we lean to a continuation of this recovery and we know that the fed -- i thought it was sloppy the way chair powell -- it was kind of sudden turn although i agree with the professor to soften up the market a little bit for what's going to happen and play the recovery still and a combination of growth and value as we look ahead. >> what about you, professor you have warned about inflation and think it's a persistent threat and if the fed starts to do something about it what type

of stocks do you want to be in in that environment? >> clearly if we are going to rate -- the long rate as you mentioned earlier is stable because i think it's fine where we fight inflation but i think they have to raise the short rate just the curve will flatten and may eventually invert but raising the short rates are going to be good for financials. i am hopeful that -- variant is going to be tame and that we're going to get more of the reopening i think part of the response on oil could come back. but the reopening trade and again you worry about bonds if their yields go up to take a capital loss and i still think that the dividend paying stocks can protect you against disinflation and give you a positive yield.

so with the sectors to be favored in 2022 clearly they were not outperformers in 2021 >> professor siegel, apple outperformed today does that make sense >> i'm not a technical trader but i think it's a technical breakthrough a few days ago breaking into new highs and a range and i think it attracted a lot of buyers. other than that, i see no other reason seems like virtually all the stocks hit equally in today's sell-off. >> mike -- >> however oosh go ahead. >> if interest rates go up there is the case that some really high priced stocks with discounted cash flows way in the

future could be more at risk but that's looking already into -- well into next year. >> just looking at the tech performers today apple we were talking at the outperformer tesla did well there's news circulating that the ceo is selling stock with a stake in the - >> there's new a new capital gains tax in the state of washington on the other hand, i think once the market is back on the heels like this i want to see the big stocks that everyone agrees to go up go down. you would rather see more surrender in what people perceive as the safe ones. but that's not a badthing looking for signs that things are gett sold out.

these are little straws in the wind to try to see if you can make anything with but i would argue when we talk about the response to powell's change of tone today and the markets acting with regard to the new variant it is not a wisdom of crowd situation and sniffing out what we can figure out. nobody knows a wait and see you have a lot of play in terms of how the market will play. and the powell doesn't know either in other words everything he said is contingent on how things play out with growth and again it was a political venue he has a confirmation hearing and has to be seen as being attentive to inflation and the market to the extent it was full steam ahead auto-pilot that's the wrong takeaway. >> what would you suggest to

people who want protection outside of the equity market and whether crypto or gold or other commodity weighted assets are a good place to go right now >> those are real -- any real asset, commodity based assets, emerging markets which are hit and many more linked to the commodities, property. there's another real asset and stocks are they will be sensitive to the interest rates and inflation hinges in the long run better than bonds are and still for the long term investor is the place to be i think overwhelmingly at this point but the other inflation hedge is obviously crypto has sort of the millennials gold is stolen what gold is normally as the hedge. and i think we'll probably

continue to benefit in that way. one does have to worry about the new legislation passing through the senate has a lot of regulation now on crypto i think part of the reason for the softness in crypto is regulation we don't know what is kept on and off. that's important. >> it feels like you have to differentiate between mega cap tech and high value tech going into a rising rate environment or a slower economic growth environment. >> you have to keep in mind that if you think interest rates are only going to go up modestly which we do, the target for the 10-year is 2.25 and if you think inflation will decelerate next year but probably decelerating

again '23 verse '22 technology is a good place to be. for us if you look at it as a group i'm not an individual company analyst but if you look at tech as a sector that's a spot to be in. >> let's get to salesforce numbers which look strong initially but down 5% in after hour just julia has them for us. >> you are right salesforce beating expectations on the top and bottom line but guidance for earnings for the fourth quarter below expectation. to break down the top and bottom line numbers, revenue at 6.8 billion versus the estimates so a hair above earnings at $1.27 adjusted versus 92 cents adjusted but the company's guidance for the fourth quarter seems to weigh on results the company forecasting between 72 and 73 cents.

analysting looking for 81 cents in earnings per share in the fourth quarter and revenue guidance is mostly above and seems to be that the guidance is sending that stock down more than 6% and digging in here and hearing from the company with the earnings call shortly. guys >> just another piece of news here brett taylor is promoted to co-coo he is chairman of twitter. he was the coo and president, rising star in salesforce since selling his company to salesforce and then at facebook and also - >> joined us recently. >> yeah. he is really out front lately for the company. he is now vice chair of the board. and also appointing laura from

william sonoma and changes there in the c suite benioff is co-coo before and didn't work out and then resumed. maybe this is his next transition. >> it's something that in silicon valley it's happened before oracle hp at times had that it's an interesting set-up in lieu of becoming executive chairman interesting too with twitter link and - >> maybe they'll buy it again or try to. >> maybe that's one way out. the terms of the stock response of salesforce to me about how tightly stretched it was looking at the free cash flow that's one to way to look at the valuation. as low as it's been in the history. >> only point going from the

question markings of a founder led leadership to the busy people chairman of twitter is a big job when you have a new ceo and promoted co-coo at the executive job. it is kind of quite interesting that that's how it played out there. >> it is twitter had half a ceo before this. >> an improvement. >> but also you have to wonder if it's a change of the duh the is or a change of title. >> president and coo and running a lot of -- benioff has the hand in everything and very involved in the other project just the stock down 7% on the guidance miss we have box earnings also out? deirdre? >> smars up as much as 5% in the after hours after beating on the top and bottom line.

revenue at $224 million. the street expecting $218 million. in terms of guidance baebting on all fronts q4 and the fiscal year revenue growth has slowed recently due to competition from the tech giants and made it a target you might remember that aaron levy defeeted a proxy challenge. this quarter is a continued success. the third straight quarter of revenue rowth. 14% year over year shares up 30% year to date this is still valued lower than the cloud peers. back to you. >> box up 5% d, thank you let's get to frank holland for hpe earnings frank? >> shares down after a miss and

a beat guidance for q1 just below estimates. full year guidance in line with what the street expected compute with more than 40% of the revenue beat and the segments that expect to be the growth drivers for this company as it transitions into a service company for cloud, network and infrastructure and missed estimates. all double digit belows. the ceo said the street isn't accounting for the revenue stream in intelligent edge and with the company won a contract with the national security agency he said on a phone call a short time ago as network as a service continues to grow we have to measure growth in a longer period of time and we want that because it gives us growth in few uture ye. back to you. >> thank you

professor siegel, gist a final wrap-up on a tougher day and tough month for investors, especially if you were in the cyclical names which are supposed to do well and the economy recovered a ten fed gearing up to raise rates. everything is turned on the head with the new variant and maybe more hawkish from chair powell what do you do >> that's true they got the variant definitely i think sent them down at the end and i think pressure on the dow, salesforce if it stays down as it is in the opening tomorrow if people are surprised that salesforce in the dow. first company in the history of the dow and people didn't know what they did but it's a remarkable company but it is going to pressure the dow tomorrow morning i think on the

downside >> absolutely. it was a biggest weight on the dow today. down 6.2% after hours. thank you for joining us >> thank you. >> thank you. >> want to hit more earnings allbirds is out. courtney >> this is the first quarter as a public company with a loss gap loss of 25 cents a share revenues coming in slightly stronger than expected the street looking for $61.9 million. a 33% increase year over year. the company is giving guidance for the full year in line with analyst expectations opened four stores and calls out notable strength in u.s. physical retail. gross margin did expand 120

basis points year over year and snga was higher due to store opening costs and the expenses with going public. see the shares down about 2.5% after hours. back to you. >> courtney, thank you don't miss an exclusive interview tomorrow on this show "closing bell. we are just getting started on the second hour. up next a guest on whether the market could continue to get hit if the fed does speed up the taper timeline here. the ceo of authentic brands. they own retailers including a lot of hard hit ones we're back in just two minutes

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where's mom? she said she would be home in time for the show. don't worry sweetie, she promised she'd be here for it. oh! nice shot! thanks! glad we have xfinity. with wifi speeds faster than a gig. me too. [claps] woah! look! [chuckles] mom is on tv! she's amazing! [screams and laughter] yeah! xfinity brought us together after all. get started with xfinity internet and ask about wifi speed fast than a gig. click, call or visit a store today. welcome back an ugly finish to november and on wall street the dow, s&p 500 both down

around 1.9%. nasdaq down around 1.5%. russell 2000 down almost 2% and dow component salesforce sinking on earnings. let's get back to julia boorstin for more color on the report especially on the guidance picture. what do you have >> yeah. salesforce did beat this quarter but it gave a look than usual and the guidance for next year did fall short of estimates on revenue. next year revenue guidance of 31.7 billion and 31.8 billion below the 31.8 billion analysts have as a consensus. no earnings guidance for next year but q4 did fall short of expectations and seems to be weighing on the stock and we have to note that the company did promote brett taylor as you mentioned earlier. stock down 5%. >> thank you. now it was these words from

fed chair powell earlier today that accelerated the sell-off. >> i think the word transitory has different meanings we tend to use it to mean that it won't leave a permanent mark in the form of higher inflation. i think it's a good time to retire that word and try to explain more clearly what we mean the economy is very strong and inflationary pressures are high and it is therefore appropriate in my view to consider wrapping up the taper of asset purchases which we announced at th november meeting perhaps a few months sooner. >> let's bring in vice chairman of ever core isi do you think that moment was a major policy shift or are we all overreacting >> no. i think it was a big deal.

look going in to ahead of the news on the omicron variant it looked like a head of steam was building an up the fed to accelerate the taper and at least open up more optionality on early rate hikes next year and then the new variant came along and a thought that the fed would go to downside risk manma management made and maybe wait to learn more about the variant before accelerating taper but what we heard from powell today is as things stand full speed ahead for accelerated taper in december regardless of the news to date around omicron. >> when do you expect the first rate hike? >> i think it's a close call between june and september of next year. i think that the fed is going to

require some further material improvement in the labor market. so the key thing there really is what happens to labor force participation. that is to say the supply with worker just a problem with omicron to delay return of workers into the market and the key to understanding why the fed hasn't reacted in a dovish direction to this new variant news this shock if it is a big shock of omicron might be more stagflation than disinflationary. >> what's mohammed el erian said earlier. i wonder if the fed is flexible and chair powell is concerned of covid and tied the economy to

the path out disease an enif it's worse than feared and if it doesn't matter to be patient on tapering and rate hikes anyway. >> so i think certainly something to what you say. powell is absolutely emphasized how central the pandemic is to the whole economic outlook and everything is hostage in some sense to pandemic developments but and it's a big but the question is what's the balance of the omicron impact on splu versus demand? if the impact is more on supply than on demand then even if the wave is serious it doesn't necessarily call on the fed to be more dovish that's the key point what i would say broadly is the market is used to the fed being a very sensitive downside risk manager and the reason to be

that downside risk manage every is it wasn't constrained by inflation. right now, the fed is constrained by inflation so the fed put isn't what it used to be >> great to see you. thank you for joining us. >> any time. up next why the recent spike in the volatility index could be bullish for investors. plus the ceo of authentic brands on whether concerns of the covid variant to slow traffic at malls. we're back in a couple

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. stocks closing near session lows today after fed chair powell said the federal reserve will discuss speeding up the time line. joining us is paul hickey. we always look to you for the historical chart patterns as to what might come next and you are looking at the vix what does that portend >> yeah. so it's really interesting, sara today we didn't see a new high on the vix which is a

constructive or positive development or what we saw last friday with the vix surge up over five points and a big move in the vix and up that much with the s&p 500 right near all-time highs. and if you look back historically when you've seen these spikes in the vix, when the s&p was within 1% of an all-time high it hasn't happened very often this was the seventh time since 1990 when you look back at the headlines of each of those periods when you look at them you're not looking at them like i remember that vividly that event. the only notable event is brexit vote in june of 2016 every other event is, okay, sounds like a good reason. looking forward a week later the market rueturns mixed it's a big splash.

takes time for the water to settle down a little bit but then as you go forward over the following month the s&p higher 5 out of 6 time just three months later higher all six times and then six months higher all six times for a median gain over 12% so on this anniversary of mark twain's birth over 100 years ago you like to bring back history doesn't always repeat itself but often rhymes and this tends to settle down. you see unsettleness and then see the market get back on track. >> what about the seasonality factors? are they still positive as things stand with the month left of the year? which sectors in particular? >> yeah. so seasonally december is

positive technology is a one of the weakest months in the year it is weaker relative to financials and utilities utilities since 1980 is most consistent to the upside in december what you also should know about is december tends to be back ended loaded as late as the middle of december on an average basis returns are only barely positive the second half of the month you see strength and then lately when you have a down november like this in a strong year you tend to see when you've been up 10% after a down november every year that's occurred nine prior times december was positive so the fact that we were down in november and historically strong month doesn't negate december. >> a lot of people thought we

are overbought in the downturn in the market. how do you gauge if we're oversold >> it depends on what you look at and the sectors communication services is extremely oversold russell 2000 is pulling back here a bit so you tended to see investors really sell with abandon there. but today breadth is weak. that could be an indication of some pacapitulation and that ended -- tended did mark a short term low for the s&p 500 back then. >> i don't know how you keep the

stats in your head but we appreciate you joining us. thank you. paul hickey. master of the sta toisices. next ceo of authentic brands and whether new covid fears cut in consumer spending plus we'll get reaction to salesforce's earnings from an analyst. down almost 6% in after hours. we'll be right back. earn about ,

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[crowd cheering] i'm not a coach, but i invested in invesco qqq. which gives me access to next-gen statistical analysis software. become an agent of innovation with invesco qqq. welcome back time for a news update with leslie picker. hi. >> hey, here's what's happening at this hour a warning from spacex ceo elon musk to increase the space flights to keep the company going. in an internal email obtained by

cnbc musk described the engine as a crisis, the engine set to power the new starship system. he said there's a risk of bankruptcy if they don't fly once every two weeks next year. jury selection in the trial of kim potter accused of killing da daunte wright last year. potter said she meant to use the taser and pulled the gun instead. she faces first and second-degree manslaughter charges tiger woods said he is lucky to be alive and will never play golf full-time again. since being in a february car crash he answered questions about the recovery and almost lost the leg and that amputation was an option. woods says while he is never going to be a full-time player on the pga tour he says he hopes

to still play a few tournaments. tonight tapping strategic reserves of maple syrup. why the neighbors to the north pushing the panic but on the of global demand tonight. sara, back to you. >> leslie, thank you retail stocks getting slammed today along with the broader market xrt etf down 2.7%. authentic brands with more than 30 companies in the portfolio. ceo jamie salter joins us now. great to have you here and you have news to share on reebok but first the broader concerns on the market but what are you seeing from consumers across the brands with the market worried about inflation and supply chain and tighter policy

what do you see? >> look. first on supply chain, we discovered supply chain is a problem really over a year ago and started to bring in the goods six weeks early. we have supply chain issues but far less concerning with us. we are up with retail goes what is concerning is e-commerce is off sort of four or five days and as far as physical retail goes physical retail is up anywhere from 15% to 20% over '19 and bullish on the year and feeling very good sort of about physical retail at malls, specifically simon malls out performing what's going on at retail today. >> we have seen that in the stock. do you think the

underperformance of digital sales is due to the fact that more people are just in stores and where does that level off? >> i think digital is fine i think physical shopping right now, is jingle bells and decorations and windows and people getting together, i just think we have sort of been locked up and people want to go out and they want to sort of feel that vibrant experiences and that's what's going on in the malls and don't get that buying on the internet, especially at christmastime. that's a feel-good time and why you see the people sort of gather to places like -- look. call a spade a spade you order in the food. it's good. you go to a restaurant and way better so think about it that way. >> agreed. >> let's talk about reebok what is the announcement today

does that mean no ipo for the distant future or still potentially on the cards >> as far as the ipo goes we are going to put that on hold for a couple years we accomplished the same thing for the investors to do a recap with the cdc and hps and in the same place we would have been as far as an ipo goes and as you know it is easier to operate in a private environment versus public environment and then as far as reebok goes we are closing february 28. it was key for us to sort of get a great partner in the united states so we will be announcing i guess here any minute on cnbc. we'll be doing joint sventure with spark, owned by simon properties and by us and in that portfolio today there's six

other brands some of the biggest brands in the portfolio but we will be heading up the reebok division based out of boston. led by those that will be heading out the product and design and sourcing which is critical for us to sort of roll out reebok all over the world. when partners sign up to do business with us it is important to have supply chain, that they have great product and great sign so we have secure tized that with the joint venture with simon and ourselves and bullish on reebok far few years. we can probably double the business somewhere between going from 4 billion where it exists today of annual retail sales to

8 billion to 10 billion. >> it is interesting because it is not your first time picking up a brand that performed. what do you think happened and how do you turn a brand like that around when it missed key trend and lost market share to companies like lue lulemon? like a lot of otbrands that you bought >> reebok is a great brand and got incredible sort of archive file great design boy choice they did what they should have done they have taken the business to compete against nike and they took some styles from reebok and people from reebok and celebrities from reebok. it was a smart, smart move by the adidas family.

us taking reebok over here is a ton of good product in the making literally for three years we have launch after launch and i am optimistic. this year reebok up 20% over '19 and very, very happy with this purchase and believe that it is definitely one of the best brands in the portfolio today. >> jamie salter, we have to have you back on. a lot to talk about with you thank you for joining us on this news. >> thank you and we really appreciate you having us on the air tonight. >> thank you ceo of authentic brands. still to come, cathie woods having a worst monthve er. that's latest. esg into your investments?

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tough finish for wall street today. let's go back to mike santoli for the jobs picture and what it means for the market ahead of the unemployment report. >> in fact understandably overlooked today within the consumer confidence report is a measure of perceived labor market conditions. consumers saying at a record level jobs are plentiful it is better than the peak of the late '90s and 2000 expansion and then jobs hard to get near

lows that spread at a record level. it says that the fed will have to look elsewhere for incremental signs of labor market tightening. that's why the attention on participation. there's a reluctance for whatever reason to fill the jobs and why maybe it will feed into the fed as we go through the months here. also the fed was already hiking well ahead of that peak so that's another way this is an atypical cycle. >> thank you so much. salesforce shares slumping on weak guidance we'll ask an analyst what he wants to hear on the company's conference call which can pick the stock up

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we're on in 30 seconds. i don't suppose you can sing, can you? ♪ deck the halls ♪ ♪ but it's not like christmas at all ♪ mommy? that's mommy. whoa. ♪ and all the fun we had last year ♪ ♪ pretty lights on the tree ♪ ♪ i'm watching them shine ♪ watch the full story at xfinity.com/sing2 salesforce shares falling on the back of earnings after guidance came in below expectations revenue guidance for next year was light as well. good to see you. i would have thought we would focus on the ceo -- co-ceo announcement the miss on the guidance moving the stock. do you think overprice reaction with a 6% decline?

>> good to see you as well i think it's exactly that. this feels like a little overreaction to me i would say all in all, a pretty good quarter maybe slightly light on the outlook. the outlook for next year in line with consensus. you are showing up side on margins. that's been a knock against the story. they are showing margins are flat year on year in spite of layering i think this pullback might create a buying opportunity. >> very quick thoughts on the co-- co-ceo announcement. >> it had been a rumor that brett was going to take over now you get the best of both worlds brett we heard is getting more and more involved, hands on in deals, especially large enterprise deals it's the best of both worlds

>> thanks for your first take. appreciate it. we have to go. salesforce down. an fda decision. it was a close vote. they did vote in favor of recommending eua for merck it was 13 yes, 10 no with zero abstentions. they are going through why they voted the way they did there are concerns about the use of the drug in pregnancy they are discussing how broadly it should be used and whether there should be recommendations on essentially trying to contain any potential risks for certain groups with this group because of the known potential side effect profile a narrow vote in favor of merck's anti-viral drug. it goes to the fda to make the decision we will wait to hear from the agency if cleared, it would be the first pill you can take by mouth

for covid-19 back to you. >> is it a question mark because it was such a close vote here? >> it's not clear. from the fda's briefing documents, it seemed like the agency expected to clear the drug and they just really wanted guidance on patient populations for whom it is most appropriate. we will see how they take this into account it did come out in favor, even if it was narrow >> got it. thanks it has been a month to forget for arc innovation fund ndut wch stocks have been weighing it down care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care,

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kathy wood's arc innovation fund falling today, down nearly 13% for the month. that's the worst monthly performance since march 2020 when it plunged nearly 17% at the onset of the pandemic. zillow plunged nearly 50%. stocks are weighing heavily on the fund tomorrow, the chance to discussion the performance with kathy wood during a pro talk,

10:00 a.m., it's live. find out more. every hot or maybe not so hot name that she has been buying on the dip mostly, especially some of the beaten down pandemic winners. tonight, don't miss marc benioff and brett taylor the market is not liking the guidance they have this new leadership position that people say brett taylor has been building up to. >> a little hostile market to lower the guide. we will see how it shakes out after i know there's going to be optimism in that interview, as there always is with marc. overall, the market is -- we're in that mode of waking up tomorrow are say are we oversold enough did the markets panic as they did last night we flushed out enough of the optimism in the short-term

no month. >> it will be hit by salesforce. it was a bit of a fail today after yesterday's bounce. >> definitely. it was a half hearted or wounded bounce we will see. we are only 3 1/2 off the high >> we are out of time. tonight, the stocks tank we are breaking down the fallout and finding new opportunity in the big drop the ultimate safety trade. apple holding up in today's session. is this where you want to park your money we will take to you the charts oil tanking today. we are drilling down on the energy trade welcome to "fast money." we start off with the 30 words that sent stocks spiraling. >> i