jim. i'm sorry, we just can't do it [ laughter ] josh brown >> berkshire hathaway, some of the best growth combined with some of the cheapest valuation you can find in the large cap space. i like it right here >> all right quick update on stocks dow is up 637 points does it for us "the exchange" begins now. ♪ i'm jon fortt in for kelly evans. what a difference a day makes, again, after yesterday's late-session selloff stocks are higher right now, and in all that volatility should you wait for the smoke to clear? plus, the great re-evaluation. job applicants taking their time to figure out what they want in a new position we have a look at where they're applying, what jobs they're applying for, and what all that might tell us about tomorrow's big jobs report. and the mortgage bailout is ending we're going to look at what that could mean for the winter housing market but we begin, of course, as

always with today's markets with dom. >> mixed in the beginning, but now decidedly in the green that's what we got right now the reason why there's been some buying activity in these names is because from an index perspective the dow jones industrial average yesterday went below a technical level it's up about 600-some points today. the s&p 500 went below its 50-day average price just for reference there, that's 4543 that's the level that it went below. right now you can see 4577 the last trade there up 1.5%. and the nasdaq is the laggard right now up only about 100 points 15,532 the last trade there. the interest rate complex overall, the reason why is the fed is in a very difficult spot right now is because it's fighting possibly slower economic growth ahead, and then having to fight inflation at the same time. it's not a very easy spot to be

in but if you take a look at the difference between short and long-term treasury yields, right now at about 8384 basis points, we are at the lowest point almost all year long that flattening so-called of the yield curve may be something that a lot of traders are watching and watch those bank stocks as well there with regard to some of the laggards today, we are seeing a rotation out of some of the names that have been hot as of late namely semiconductor all among the underperformers in the s&p right now. and the vaneck semiconductor etf you can see just about flat on the day. so watch those and then the stock of the day, dollar general an underperformer came out with earnings that were better than expected this morning. however, it's going to get into a line of business for higher-end bargain stores, those that target items $5 or less pup shelf is the name of it. dollar general shares down about 2.5%

the value trade there, inflation fighting part of that whole narrative around dollar store is going to try to go up-scale. >> upscale to $5 they're going to have to change their name to $5 general everybody's changing their names these days >> it's kind of like five below but not. [ laughter ] >> socks selling despite the ongoing concern about the new covid variant. my next justs say they see opportunities but they're waiting. bob, first with you, the variant seems to perhaps not -- at least we don't have enough information on what this omicron variant is doing yet. but even if it's not so bad, should we take this market action as perhaps a sign of what could come as far as revuing certain stocks

>> i don't think the omicron is going to be as big of an issue as potentially closing down the economy was last year or in 2020 so if you look at it from sort of that far perspective, it's just another issue that you have to work through, just like we worked through the delta variant. and i think as we move forward, the issues are going to be more surrounding the federal reserve, and if they're actually moving the goal post on us, speeding up the tapering that's what's going to cause stocks to reprice. next year is going to be a good year, but it's going to be a difficult environment to start off with people are going to be a little bit confused as to where to put their money. and as we move throughout the year and get an interest rate increase under our belt and we realize that the fed's not going to be be able to move on interest rates as much as i had hoped for, then we will start to see some pretty good gains and you'll start to see the low

double-digit returns for next year >> paul meeks, i see some of these names that you like, broadcom, nvidia, alphabet qualcomm, some of those names have been up quite a bit i wonder if you have any thoughts about what's happened to gross stocks over the past couple weeks i'm thinking c3 ai which is getting clobbered today. elastic, another cloud-related name had some good results. we got the ceo later this hour but also down significantly. how do you factor in those kinds of moves where you see bargains? >> i've been covering the tech sector for a very long time, as you know and of course i'm looking for sustainable, durable models. the problem with some of the particularly new-age companies, the ones that came to the market in the last couple years, some that you've mentioned, they've

become so expensive. and the analysts that cover them and the portfolio managers that own them are requiring a diet of greater and greater growth and higher profitability and i think some of these companies really benefitted from covid, and now they're starting to see still pretty rapid growth but a growth deceleration. and that is a suicide mission for some of these very highly priced stocks. i still like the ones that have good fundamentals and good growth prospects but they're not so egregiously valued. >> i guess a stock that might fit that mold for you is salesforce but you like consumer discretiony names like nike. >> these are definitely market leaders that you're probably not going to get too hard with if the market continues to pull back a little bit.

but if you're looking to add a little bit of alpha to your portfolio, you have to look outside the box. salesforce is a leader in what they do and they reported a very good quarter it got hit hard. so here's an opportunity to add some alpha, get a little more potential return in there. >> paul, how much do you buy into narratives like the metaverse? which i'm kind of cynical on i think a lot of stuff is being put together in there that doesn't necessarily belong together but broadcom, nvidia, qualcomm google has some gamestreaming stuff that certainly fits and some other technologies as well. how do you decide what actually makes sense in a narrative like that and are you playing it that way? >> so, i do think that metaverse has become too broad, but i do believe that the stuff that's really important is accelerating computing and artificial

intelligence, and however you wrap that and whatever kind of marketing spin, those are going to be big, enduring fast-growth themes so, some of the semiconductor companies like broadcom and micron and nvidia and qualcomm, you're absolutely right, they play into that theme >> all right well, we will leave it there for now. some big stable name as cross a bunch of different sectors to think about and rely on. bob pavlik and paul meeks. now we've got a news alert out of the sec bob pisani joins us with the story. bob? >> hello, jon. foreign public companies that are listed in the united states may be delisted if their auditors do not comply with request for information from u.s. regulators. today the sec has adopted amendments to finalize rules to implement an act called the holding foreign companies accountable act. now, this law was passed in 2020 after chinese regulators repeatedly denied requests from u.s. regulators that oversee the

audit of public companies to inspect the audits of chinese companies that are listed and traded here in the united states in 2020 chinese firm luck and coffee fired its ceo and its coo for accounting fraud that increased calls for action here in the u.s. the law permits the sec to ban companies from trading and be delisted from exchanges if the pcaob, that's the regulator, is not able to audit requested reports for three consecutive years. it also requires companies to declare whether they are owned or controlled by any foreign government now, the rules adopted today establish a framework for the law's implementation the finalized rules will allow investors that are not allowing the u.s. regulators to inspect their audits this is a very tough situation investors say it's the chinese

regulators who are preventing the u.s. regulators from expecting the audits, not the companies. the issue unfortunately has become very politicized. these companies are all audited by the big floor accounting firms. but under chinese law, regulators are not allowing those audits to be sent to the u.s. regulators. so what you have here essentially, guys, is chinese law clashing with u.s. law, and a lot of people feel this needs to be dealt with above regulator level, above the sec chinese regulator level perhaps at the trade representative level and the people who lose here, guys, are u.s. investors some of these companies have been here for 20 years or more are now under some kind of potential regulatory pressure in the u.s. >> so, bob, what's the practical impact of that does that change the risk profile? >> yes >> investing in some of these stocks are we seeing investors unloading these now? or is there some sort of belief that this is going to get worked out at a different level >> well, this is part of a whole

issue about relations with china and investing in china and whether chinese stocks are even investable under the rules that the chinese government has set up it's become very politicized, unfortunately. and i think a lot of people are trying to figure out what they should be doing with their investments. meantime, the chinese aren't waiting. they are also now taking companies that list here, chinese companies and doing dual listings in hong kong just as a sort of backstop in case something really dire happens like they get very aggressive here in the united states with this law again, i still feel that it's unlikely to be resolved at the s.e.c. level the chinese are saying this is chinese law, the u.s. is saying no and there's a clash of laws here that's got to be resolved i think on a higher level. >> kind of an in-the-weeds question here. i wonder how much risk there is for u.s. companies that either

have investments in chinese companies that could go public there's been quite a bit of that over the years, as u.s. companies have tried to get access to chinese markets or even customers in china. we saw with huawei some interesting impacts from political issues, regulatory issues between the u.s. and china there. >> the answer is yes this is why it's such a mess the world is so intertwined and interconnected now that trying to, like, disentangle this and say, okay, we're going to have some separate chinese system and chinese trade and chinese stocks and u.s. stocks here and we're going to make some clear-cut is very unrealistic that's why this becomes a political question it's more than just the regulators saying i want to access, i want to see your books. it's a higher-level concerns here there's a lot other things beside auditing the books going on this is right now just a very specific legal issue

the chinese regulators say it's chinese law, we cannot pass it on to u.s. regulators just because the u.s. regulators want to see the audits of our books well, how do you resolve that? again, this gets into resolving the whole thing on a higher political level, maybe the trade representative level is probably where it's going to be resolved. >> until then, investor beware bob pisani, thank you. now, as dom mentioned, the yield curve is coming off its lowest level in nearly a year down 20 basis points since monday >> it really is truly amazing. and you can really see the dynamics in place here now, the high watermark post covid was around thanksgiving when it closed at 64 basis points it's now at 61 only down 3. now go down to curve to tens we're currently trading at 145

as you see on that three-month chart right around the end of october, we're down 25 basis points from our post-covid high. that really exaggerates what's going on and dom was talking about tens to twos. they had their high water mark about 130 basis points in early october. they're now at 83. they're flat 47 basis points since the first week in october. now look at 30s versus 5s. it's currently at a nine-month flat at 55 basis points. and if you look at boons, flattening curves. look at a three-month of 10-year yield. around the 12th of october, minus 08 they're now at minus 36. these are big distances, and it matters. and many are scratching their head right now we're at, what, 61 for two. so we're up six on the session

but as you look at 145 and 10s, we're up five on the sessions. but for a while we're seeing a catchup going on why are data so far behind everybody's saying, well, slow growth that's an easy answer for a very uncertain future regarding the variant. there's a lot more going on. don't forget how many trillions of dollars the fed has purchased to think that you're looking at the long end and getting reality of where the rates are, nay-nay, i say. >> well, we'll be looking to you for more and better guesses over time about why this is happening. coming up, continuing jobless claims fell below 2 million for the first time since the early days of the pandemic but applicants aren't feeling too hot about the labor market we have the latest read on jobs from recruiter.com plus, a look at enron's complex legacy 20 years after declaring bankruptcy and setting off one of the biggest corporate scandals in history. "the exchange" back after this

>> this is "the exchange" on cnbc

welcome back jobless claims are still hovering near a 52-year low, while continuing claims fell below 2 million for the first time since the pandemic.

that happenedl last week getting more people back into the workforce is starting to get tougher, according to new data from recruiter.com their sentiment index in november fell to levels not seen since december 2020. joining me now to discuss what that means ahead of tomorrow's job report is recruiter.com ceo. evan, this doesn't kind of at first blush make sense to me recruiters aren't feeling so hot, but they're paying more, but higher pay isn't making prospective feels feel so hot. why are we so picky and why are we so vexed? >> look, thanks, john, for having me back are we surprised that it's not easy nothing's been easy this entire time we started to use the expression from our talent effectiveness team called the great re-evaluation. and we think companies and employees are really re-evaluating when they want to go back, how they want to go

back, how they should get paid, et cetera. and it's making the recruiter's job even more difficult. and that's why we saw recruiter sentiment down at a 5. last month it was at 3.9 it's down to 3.6 and the candidate sentiment went down from 3.6 to 3.3 the companies are trying we saw 37% of the recruiters report an increase in salaries yet, on the candidate side, that dropped as a priority. so compensation dropped from 30% to 25% as a priority of the candidates' priorities, 75% of their priorities, their number one priority was not about compensation >> then what was it? >> work/life balance, remote work, new experiences went up from 14% to 20%. >> you know what this sounds to me, like, though, evan are we experiencing in the job market an inflation of expectations, similar to the monetary inflation that we

experienced. does it seem like the market's so tight that candidates are, like, i don't want to work today or i want to work in my slippers what do i want out of life as opposed to just money. whereas when things were tougher, maybe those concerns wouldn't be the same >> i agree with you. the question is where is this money going, how are people actually living? and maybe this is a big impact of the gig economy as people are using side hustles as their primary income it's getting harder. and what we saw in the numbers is that more companies were using recruiters to go after the $40,000 salary positions and if you watched our numbers back in august about 22% of the recruiters reported that those roles were in that salary range. that's now over 34%. so, all of a sudden now you're having recruiters, which ordinarily didn't recruit in those levels are now you're having companies say, hey, recruiters, get me those people.

that's what's hard to do >> but there's a problem recruiting recruiters, right >> oh, my gosh earlier this week, "wall street journal" came up with an article that said the hardest thing to recruit for is recruiters. demand is surging for recruiters now, being recruiter.com, that's a good thing from our perspective. but, yes, the demand for recruiters is high and some of the data that were put out in our recruiter.com recruiter index really shows that the demand for recruiters and staffing professionals is really at an all-time unprecedented high >> well, it's a great setup for tomorrow's jobs report the market tends to move on it and who knows what it'll show. thank you. still ahead, covid-related mortgage bailout programs are set to expire, potentially leaving more than a quarter of a million homeowners out in the cold but could the red-hot housing market give them a way out we'll explain. our best deals on every iphone - including the iphone 13 pro with 5g.

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welcome back to "the exchange." major indices near session highs right now, at least the dow and the s&p. the nasdaq a little off of that. meanwhile, all 11 s&p sectors in green right now led by financials which are on pace for their best day since january tech and healthcare are the laggards with healthcare up about a half a percent here are some of the movers this hour airline stocks rebounding from yesterday's losses delta leading the way up 7%, while southwest, alaska air, united and american are all up about 5% casinos are seeing green today, led by wynn, mgm and caesars not every name is rallying with

the broader market today shares of ride-hailing and delivery company grab holdings sinking in its debut profits for kroger fell by about 25% from a year ago. the stock is having its best day in just over two years so be sure to tune into "closing bell" later today at 3:00 p.m. eastern for an exclusive interview with kroger's chairman and ceo rodney mcmullen. now to rahel solomon for a cnbc news update hey, rahel >> hi, jon here's what's happening at this hour we begin in new york city where mayor bill de blasio saying we should assume there was community spread of the omicron variant in new york. that's after a minnesota resident tested positive with the new variant. this after attending an anime convention in new york new york city health officials calling for covid testing for everyone who went to the anime new york city convention from november 19th through the 21st the house of representatives

is expected to vote soon on a bill that will keep the federal government funded through mid-february the bill passed a key procedural hurdle late in the morning and on "the news" tonight, jurors of the ghislaine maxwell trial learning about how sexual predators lured their victims and a look at all the other developments in the case tonight at 7:00 eastern. santa's going underwater to set up a christmas tree at an aquarium exotic fish and sharks swam by as they decorated the tree and apparently the tree needs to be checked every day because in previous years the fish have knocked the tree over or snapped off decorations during the night. but who among us doesn't with the christmas tree >> certainly those of us with cats are familiar with that challenge, rahel, thank you. coming up, theater stocks up today but down sharply in the past week over omicron concerns. could this dip be a buying opportunity? that is next

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december 8th, join cnbc's financial adviser summit for strategic insight from industry heavyweights and market influencers, sharing innovative ideas for clients and firms in the new year register now at cnbcevents.com/fa-summit welcome back another case of the covid omicron variant has been identified markets so far shrugging that off with all the major indices in the green today after yesterday's late-session selloff. but there are concerns it could

take delta's title as a dominant variant. is there more volatility ahead, therefore? let's get to our team coverage meg tirrell has the latest on omicron's spread seema mody is looking into how it could impact the travel sector's recovery as the u.s. tightens some restrictions and julia boorstin is tracking the theater stocks which have been beaten down recently. meg, let's start with you. too early to see what the public health threat is from this variant? >> yeah, jon we're still gathering information. we do know, though, with this newest case in the united states, it does look likely there is community transmission. the latest case in minnesota is a man who had travelled from new york city, had no international travel history he was fully vaccinated and received a booster in early november he was in the new york city area attending a conference at the javits center november 19th to the 21st and minnesota health authorities say that he has one close contact who's tested positive but is still being sequenced so we don't know ifthat's omicron

importantly, he was vaccinated and boosted. he had mild symptoms they say that those have resolved but here in new york city, of course, contact tracing is going on there are warnings about folks who attended that conference new york city health commissioner saying that this does mean there is community transmission in this area. and telling folks that anybody who attended that conference should get tested immediately and taking additional precautions including masking and social distancing. meanwhile around the world, 29 countries, at least, have identified cases of omicron. in south africa cases are spiking into what is now their fourth wave. we just spoke with an epidemiologist there who said this is spreading faster than delta, and new information that just came out from health authorities they note what looks like a threefold increase of risk in reinfection compared with previous variants so people who've had covid are getting reinfected with the omicron variant. but, jon, we still have a lot of

question marks on the protection that the vaccines will provide, especially against severe disease and of course the severity of this variant so far it does not look different. >> meg, did i hear correctly yesterday dr. fauci saying that it's going to be important to get data from these areas where there has been more spread, to get a sense of some of the things that you were alluding to, how much protection do the vaccines offer, how much protection do boosters offer, and therefore what level of threat, different kind of threat is there though it seems like this idea of higher-threat of infection would be a concern regardless. >> absolutely. particularly here in the united states we've had such a huge delta wave you think about those areas of the south. florida looks like it's doing really well right now because it had so much delta infection, folks are not getting reinfected if omicron can reinfect people, that's not great news.

we should get epidemiological data from other countries. we'll also get lab data toward the end of next week to see how the vaccines are holding up. >> that's important. meg, thank you so, how will omicron affect these tightened restrictions what'll all that mean for the travel sector's recovery seema mody joins me now with a look seema? >> and, jon, investors and travel executives really focused on the weekly data the latest hotel occupancy data for this past week shows weakness in europe and asia. but the u.s. is holding up well at 53% that is slightly lower than the prior week but still a record for thanksgiving weekend spoke to diane petras at the travel institute she says they're hearing travelers showing more caution and taking a wait-and-see attitude toward booking international travel as countries impose more requirements you have israel and japan where

nearly all foreigners are banned from entry south korea adding a ten-day quarantine requirement and germany imposing tougher rules on unvaccinated citizens booking holdings getting an upgrade today from ubs home rental platforms like airbnb expedia beneficial should this have a larger effect on travel sentiment >> i'm wondering this time around is it mostly the risk in the travel industry tilted toward international in particular and does international mean something different, certainly if you're in the u.s., big country, there's a lot of domestic travel to do. but in europe not necessarily so are we going to see some of those effects play out again based on what we're seeing so far? >> absolutely, jon if you look at the performance of these travel stocks, they all hit a 52-week high around the time of november 8th when the

u.s. finally lifted restrictions on fully vaccinated foreign travelers. right on this expectation that we would start to see a resumption of cross-border travel the data at that point suggested we were going to see more travel europeans coming here and vice versa. but because of this variant there are these new questions about whether there will be similar appetite to travel overseas whether vaccinated or boosted or not, is that experience going to paris and germany where someof the christmas markets are closing because of this variant. should i hold off till spring of next year? we don't have that answer yet, jon, but that's what the market is waiting for >> it probably means the national parks here are probably going to continue to be crowded. and julia boorstin joins me now with whether the dip presents a buying opportunity spider-man tickets till selling. maybe there's some silver lining here, at least for big hits?

>> yeah. well, those theater stocks are bouncing back today, jon but in the past week concerns about omicron have sent them plummeting take a look at the past five trading sessions amc entertainment shares lost 22% over those five days imax shares down 10% and cinemark shares down 6%. amc has been a meme trade, it is still up around 1,250% year-to-date but for the other two big theater stocks, some analysts see a buying opportunity because year-to-date cinemark is down over 10.5% and imax is down about 9.5%. she says she sees pent-up demand for high-quality content, particularly from younger people who don't feel as threatened by coronavirus. she points to evidence in those ticket presales for spider-man: no way home ahead of its opening in two weeks cinemark saying that film had

the second biggest advanced ticket sales of all time just behind marvel's "avengers: end game." so mkm's eric handler says he agrees that they are oversold but he worries that there are still longer-term questions about the pace of the box office recovery and whether studios return to doing more simultaneous releases. this christmas, in addition to that spider-man movie, there is west side story. both of those will be exclusively in theaters. the matrix resurrection, that one will be simultaneously in theaters and on hbo max. so we'll have to see what types of choices people make this holiday season jon? >> julia, at the risk of overpersonalizing this story, i wonder if the availability of vaccines for younger people, for younger children, might be having an outsized positive impact on the theater overall. because a family might have some younger members and avoid the theaters all together because

there is one member who's unvaccinated or at least who was but now is vaccinated. now maybe the whole family goes back any of the analysts say anything about that >> i think you're absolutely right that the vaccinations are going to have a huge impact. and you mentioned that your family had already bought tickets for spider-man i will say that my family did as well because by then both of my kids will be fully vaccinated so i think there is this sense that there is a light at the end of the tunnel for families with young kids who have just gotten vaccinated but on the other side of that we don't know what's going to come out yet from omicron and so far there doesn't seem to be any negative impact from omicron on ticket sales. it's just too soon to say. but two weeks from now when spider-man opens in theaters, by now we'll know a lot more about omicron and we'll see whether that does keep people at home. but the other thing to remember is when movies like "sing 2" come out, that is a film that could really benefit from kids being vaccinated, and that is a

movie that is not going to have simultaneous distribution. so a lot of these kids' movies have done simultaneous distribution because kids weren't vaccinated now we're going to start to see more of a push to get people back in theaters this is going to be a big test what happens this holiday season, jon. >> feels like we're living in a superhero disaster movie plot some days. julia, thank you now, coming up, remember this >> i'd say you were a carnival barker, except that wouldn't be fair to carnival barkers a carnie will at least tell you up front that he's running a shell gate >> it has been 20 years since enron's collapse, and it is one of the biggest corporate scandals in history. the company was also a pioneer behind innovations we take for granted today. a look at enn'ros complex legacy is next. l plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be.

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bankruptcy and while its collapse is infamous, the company was also a pioneer in certain technologies. scott cohn has a look at enron's complex legacy >> mr. jenkins, it must be evening there. >> 20 years before zooming was a thing, this enron promotional video was touting videoconferencing on the internet and streaming video years before netflix >> enron communications is changing how the world communicates >> we are changing the industry. >> scott jaeger was head of strategy for the division that became enron broadband we spoke on zoom >> we were the only ones focused on broadband experiences, and broadband did include streaming media. >> before that, enron created the modern-day markets for natural gas and electricity, setting the course for how energy is priced to this day energy markets expert ed hurst who worked with prosecutors to build their case against company

executives concedes that enron was a pioneer. >> did enron revolutionize trading for national gas and electricity? without question brought liquidity, brought benefits to consumers and producers. >> reporter: which is why when enron went bankrupt, throwing thousands out of work in a matter of hours, many mourned more than just a job but leslie caldwell, the first head of the justice department's enron task force, says none of that means enron was not a fraud. >> the people who worked at enron, there were tens of thousands of them that many of them, probably almost all of them were honest, hard-working people trying to do the right thing. but the problem was they had a culture at the top that was not that way >> there was a lot, though, that also came out of that culture that still exists today. how should we look at that, the things that they did that were literally pioneering >> i'm not saying that they didn't have any good ideas or do anything, but they tried to monetize things before they were really ready >> leslie caldwell says that's

when the company crossed the line into fraud. nearly two dozen people either convicted or pleaded guilty in the massive prosecution that followed jon? >> scott cohn, such an important story and lookback and i can't help but see the parallels with theranos in the elizabeth holmes trial you're covering now just because you have a fraud, everything's not black and white. sometimes there is some degree of innovation, doesn't that share how careful investors need to be about leadership >> reporter: they do obviously i'm covering the theranos trial in san jose and i covered the enron trial in houston. enron was an established company. it was a public company, where theranos was still a startup possibly aiming to go public at some point

there was only a little more meat on the bone only because enron had been around for longer and was in these different areas. but, yeah, people have to look behind the hype, and companies also have to look behind the hype and make sure that they are presenting the clearest possible picture of what they're doing. >> and we appreciate that you're always looking behind the hype scott cohn, thank you. up next, shares of elastic sinking despite stronger than expected results we have an excsiluve interview, next "the exchange" will be right back

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welcome back cloud computing company elastic falling, i think, just over 17% so far today despite reporting a revenue beat and smaller-than-expected loss they count uber and adobe as a couple of clients provide search, functionality inside the cloud. been down nearly 21% this year joining me now is sean bannon, the ceo and co-founder i look at these results, look good put them up against a c3 ai,

another company that's relatively new to the markets and kind of has been caught up in how the market feels about growth what do you make of the market action up against these results that you just turned in? >> thank you for having we are saying the market is won'tified over the last few weeks, but we remain very, very confident about the robustness of our opportunity as we look ahead, if you think about it, the company has become more and more digital and more on line and moved to the cloud and they are generating an ever increasing amount of data as a result of it we are the leader in providing search experiences across any type of data from adding a search box to your website to

monitoring our cloud infrastructure to preventing and protecting cyber threats as you said we reported a very strong quarter, 42% year over year revenue growth and 84% cloud revenue growth and north of 17,000 customers. as i look ahead, i think our opportunity is robust is we are only getting started thank you for having me today. >> it is important to zoom out and maybe look at a two-year chart as well here because there has been upward movement over all even though in the past few months, year plus it has been volatile i wonder, for a company like elastic how much do these fluctuations in the stock price affect your ability to function. recruiting, how are you handling

that stock price piece of it. >> we are proud of the culture of elastic on a daily basis. it is one of our strongest strengths. we know we need to look at the tonight we have in on the traffic us over the long term versus a daily basis we are building the company towards the long term, innovating towards the long term the secular trends we are supporting, the ability to help people find what they are looking for over any type of data, they are still as relevant as they were ten years ago and they are going to be very relevant as data volumes explode over the next ten years. our employees and customers know we are building a company towards the long term and we are very happy about it. if you think even just last quarter that was the strongest quarter this we had with having the employees taking aside our acquisitions, we added 287 employees, which is the highest ever >> i was talking earlier with

the ceo of snowflake, also reported earnings. stock went the other way, up about 12.5% he talked about large deal sizes and the appetite for transformative technology. what can you tell us approximate size of the deals that you are making as you grow and turn in these results and the appetite that's fuelling it. >> we are definitely seeing an increase in the amount of large deals that we have our company is geared towards what is called a bottom-up adoption we start with the practitioners and go up to enterprises this quarter we reported a significant increase in our $1 million and above customers that accelerated over the last two quarters versus historical numbers. we are definitely seeing that it is driven by the move of the cloud. by the way, when companies move to the cloud, they move to multiple clouds. it is driven by the increase in

the amounts of data. our growth is correlated to the ability to find insights within that data. >> ceo and cofounder of elastic. thanks for joining me. >> thank you very much my still ahead, the covid mortgage bail-out program is ending that could heat up the winter housing market that's next. "the exchange" will be right back

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welcome back the pandemic mortgage bail-out program is ending. while that means foreclosures for some it could be a silver lining for others diana olick joins me now with that story. >> john, nearly 8 million borrowers went into covid mortgage relief programs over half are now current again. according the black knight still there are 264,000 homeowners who expired from their forbearance terms and are now delinquent and 38,000

already in active foreclose your these borrowers have substantial equity in their homes thank to soaring home prices during the pandemic close to 3/4s of the borrowers in foreclosure have over 20% equity and over a quarter of them have 50% equity according to realty track. it is likely similar for those 264,000 who are expired, now delinquent but haven't reached foreclosure. what does that mean? it could mean 300,000 likely lower priced homes coming onto the markets over the next six months the question is whether the homeowners will wait to sell or wait out the foreclosure process. the shortage is so bad we may need more than 1 million homes just to immediate demand. >> it makes me wonder, might the process take longer than expected because so many of these homeowners do have equity.

might they have more options might the market impact not hit as immediately >> well, they have equity in their homes, but if they can't pay their mortgages, they are going to have to do something. the bank aren't going to let them sit there and not make payments the issue, do they sell immediately or wait for foreclosure? i would think people would solid and taken the profits and moved on but the rental market is so expensive and they obviously can't buy another house. they are sitting and waiting this out and they don't have to make a monthly payment it could take longer, john. >> what is your impact on the dwroefr all housing market >> the homes will go for sale. the question is do they get bought by owner occupants or investors and turned into rentals. we know the market is incredibly lean we need more homes for sale. you are talking about a quarter of a million, dwre, we need a

million and the builders are ramping up a quarter of a million isn't shabby when you are talking about homes going onto the market but do they go to homeowners or investors. >> given that inventories are so thin diana, thank you heading towards "power lunch." looking a the major indices. with that, that does it for "the exchange." "power lunch" starts right now john, thank you very much. and welcome, everybody, to "power lunch." i'm tyler mathisen joined today by courtney reagan here's what's ahead. the rally resumes. the dow and the s&p now at session highs as investors embrace the volatility but is it too risky to buy some of the hardest hit stocks since that post thanksgiving slump less than a week ago and opec drama the cartel decides to keep adding more barrels to the market each with oil prices down