million times. what's the problem >> paralysis of snowstorms in that area. >> it's six inches of snow or eight or -- i don't get it >> they had plenty of time to get ready for it it wasn't like it was a huge surprise our sympathies with those stuck down there >> i feel so bad i think we'll learn more >> kelly, we'll see you tomorrow thanks for watching "power lunch. "closing bell" right now thank you. welcome to "closing bell." i'm wilfred frost at the new york stock exchange. it's a tale of two markets the dow and s&p 500 setting record highs, the nasdaq sharply in the red >> welcome, i'm sara eisen let's look at what is driving the action in the final hour yields on the move again the ten-year note yield approaching 1.7% that's pressuring tech stocks with chips and chinese internet seeing the most pain covid cases exploding in america. the u.s. reporting a single day

record monday of more than 1 million cases. some of those may have been due to reporting delays over the weekend. and energy is the top performing sector once again today as oil moved higher following opec's meeting nasdaq down more than 1.5% dow on track for a record close. >> s&p 500 is nearly positive again, just rounding back in the last 15, 20 minutes. coming up today, youssef squali will weigh in on the nasdaq selloff. plus rbc's helima croft will talk about the strong start for energy and what she makes of today's opec meeting let's focus in on the big stories we're watching right now. mike santoli is tracking the market action. deirdre bosa has more on the selloff in tech. mike, start us off with the broader market telling two different stories. >> real strong offsetting

current information keeping the s&p 500 in check it's running from steadier, expensive growth stocks down towards cyclical areas of the market also it's going from crowded to perhaps under-owned areas. there's perhaps a lot of new year's reshuffling going on here the s&p 500, as i say, more or less going sideways here just under this 4,800 level. the s&p 500 has not closed above the 4,800 level. 4,700 held the market in check for quite awhile back in the fall other 100-point increments has happened a handful of times. the nasdaq never made a new high as the dow and s&p did that is xov, that's health care,

giving back some of the recent gains. energy and financials kind of rising to meet that. that shows you where we're coming from. october 4th was the autumn low in the s&p so that's kind of what got the market higher it was the growthier and steadier areas as opposed to the cyclicals ten-year treasury yield. everything is moving in concert here the ten-year is about to -- perhaps challenge this may high. so 1.7 and change, 1.75 and change is where we got to here in the spring. we never really lost this general uptrend. it's broken down almost a couple times but not quite. short-covering rallies in treasuries and the omicron concerns that kept a lid on things here we are. springing a bit higher we'll see. we had a hard time breaking through that in a sustainable way. stocks versus bonds. this sort of way of valuing one against the other. this is the gap between the earnings yield of the s&p 500 and the ten-year treasury yield.

you see in a post-financial crisis, it's kind of bottomed in this general area. doesn't mean there's some objective standard that says that's when stocks are super expensive compared to bonds. around the entire '90s, this was below zero so the stock market was more expensive in 2000, yet stocks were trading at 6.5%, 7% so there's no real correct number, but it's worth noting this is about as low as it's gotten in the last dozen years or so. >> so this is a sharp two-day move for bond yields higher. people have been waiting for this for months as the economic picture has improved, as inflation has run higher than expected, as the fed looks set to raise interest rates. why all of a sudden right now? >> clearly the calendar has something to do with it. there was probably some mechanical factors that were keeping people rotating, doing some buying or deferring some

selling in fixed income. maybe real yields don't need to be as negative as they are in that type of environment as we get more clarity and hope that the omicron wave will be intense but not long-lasting and it's not in a noticeable way causing across the board stoppages or business restrictions, at least none that seem like they'll be in place for a long time. >> with yields moving as they are, you know, financials doing very well, for a sector that doesn't ever have the most bullish price targets ever, it's not like a peloton or a shopify with 20%, 40%, 50% upsid, in the space of two days, wells fargo is up double digits. most of the big-cap banks are up close to 10% in two days they have come close to peoples price targets >> i think the years of perhaps disappointing upside in the area -- because you had the

fundamental case in place for some time right now in terms of balance sheets, how the consumer is in good shape i do think that the sell side sees not a lot of advantage in having aggressive upside targets. when sectors get bullish, they'll blow through the sell side expectation i don't think that puts a cap on things, but it's worth noting that's why it's going from the favored areas of the market from latelast year into those that people didn't necessarily expect a lot out of >> thank you very much the best sector this week, this year, energy up 7% in two days let's have a deeper dive on what's moving the opposite direction today, tech. the nasdaq underperforming chinese internet and chips among the biggest decliners. d deirdre bosa has a breakdown of those. >> semis have been outperforming for the last three years today you're seeing some of the biggest winners with the biggest

valuations getting hit hardest like nvidia and amd, each down 4% in the session. intel has been the laggard in the space, far less expensive. today it is in positive territory as investors perhaps are looking for value. that theme is playing out. the momentum growth stocks, they continue to sell off while the legacy or value tech names catch on dell, ibm, hpe also in the black today. chinese tech names, for them it's pain on top of pain t falling 5% after last year's 50% pl plunge alibaba, jd.com, baidu you have more auditing disclosures, beijing's crackdown

and the list on home grown exchanges. it doesn't look like there's an end in sight back to you guys >> some people thought this was the turnaround trade for this year certainly not yet. thank you. deirdre bosa let's turn to the virus. president biden meeting with his covid response team in the last hour as cases skyrocket across america. meg tirrell has the latest meg? >> so we have that million case number that was reported within 24 hours in the u.s. that's a pretty eye-popping number it does include a lot of backlogs from the holidays nonetheless, we're reporting more than 480,000 average daily cases. we know that's an undercount given a lot of tests are not reported to public health agencies and we're not doing enough testing hospitalizations are rising in a fairly fast clip you can see that on the curve. there are models that suggest hospitalizations could get as high as we saw last winter because of the sheer number of

people getting sick with omicron. there is good news in that it seems like overall a less severe variant. deaths have not started to tick up that we've seen in the united states just anecdotally from er doctors, ers are overwhelmed but folks vaccinated are well-protected cdc updating its prevalence numbers. this is an old wall. it is now 95% prevalence of the omicron variant in the united states as dr. gottlieb pointed out, 5% of 1 million cases being delta is still a lot the president today updating on the country's plans, really focusing on vaccinations, boosters, testing, and, of course, treatments announcing the government doubled its purchase of the pfizer antiviral to 20 million courses. here's what he said. >> these pill also dramatically

decrease hospitalizations and deaths from covid-19 they're a game changer they have the potential to dramatically alter the impact of covid-19, the impact it's had on this country and our people. >> so, pfizer saying it's now going to deliver the first 10 million there by the end of june the second 10 million by the end of september as the president indicated, they may need to order more back over to you >> meg, thank you very much. we have improved over the course of the last half hour, hour or so the s&p 500 is essentially flat. the nasdaq still down 1.5% should you buy this current tech pullback? we'll ask a top analyst which stocks he's recommending and which one gig economy stock that's sinking today that should have a strong year you're watching "closing bell" on cnbc.

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the -- that's the downside in a way of covering high growth high multiple stocks on days like this where interest rates go up and financials go up certainly my group kind of takes a beating. it's okay. we've been here before, multiple times. i can tell you if you step back and look at the internet group for the last 12 months, we have not seen the 24%, 25% increase that the s&p 500 has seen last year we're actually down 5% so i would argue that we're already basically in the middle of our correction, which started probably two, three months ago and i would also argue that we're probably closer to the low end or the bottom of it than to the high of it if you look at the valuation of the group, we're trading around 13 times forward cash flows. we've been as high as 19, as low as 10. though we're not at the bottom, i don't know if we'll revisit the bottom, but we think that

this is a very interesting opportunity to start, you know, kind of adjusting the portfolio towards this group growth is still going to be there and fundamentals have only improved last year we continue to see them improving. >> one of your top picks is down 7% today, doordash you think it's going to do well this year? >> i do. we came out with a note this morning highlighting a couple things one, that basically through the end of the quarter, to be act through december 28th, our proprietary truist credit card data suggests they should be outperforming street expectations that was a reason for us to tweak our estimates up a bit to beat the street high the other is we did a survey some time back, about five months back, which showed that even though the economy was starting to reopen, about two-thirds of respondents -- we

had about 1,000 plus respondents, about two-thirds of them said they did not expect change to their behavior even though they will increasingly be going out to restaurants that's why we feel this one is well set, both for the fourth quarter and for 2022 >> are they even profitable? why would i want to own that in this kind of environment when the mantra is quality? >> depends how you define quality. i would argue that this is one of the best tech ipos that we've seen in the last ten years the last year since they've been public they've been outperforming consistently expectations the only reason they're not profitable is because -- i should say they're profitable in a cash flow basis, they're not profitable in a gaap basis, the reason for that is they're expanding and investing

aggressively in areas that are expanding their things like groceries, 10 to 15-minute super fast delivery. i would argue the core of doordash is already profitable >> in terms of the -- >> the other skepticism -- >> sorry, go ahead >> i wanted to follow up on doordash there is a lot of september sic skepticism around this name, the competition with grubhub and the pricing war that could create. and so many of these other types of laws or initiatives are popping up all over the country against workers and freelance. >> you're right. every gig economy model is running into these issues. doordash has 50% market share

and is in the sweet spot of those issues clearly those are a set of concerns we highlighted every time we talked about it. that didn't prevent the stock from going from 115 last may to 245 back in november all we're saying now is all things considered at 130 or 135, we think people can see the stock by the end of this year, early the following year get back to north of 200, even with all these issues which again, i would argue that they're pretty -- they are pretty well understood and provide risk. but those are already priced in. >> finally i was going to ask what your top pick was amongst the mega cap names for the year ahead. >> yeah. the two names we've identified were -- i'm a little boring with these -- one is alphabet, ie google, the other is facebook we think they'll display growth in the 20% plus range and with

strong, strong profitability google is probably the least controversial and search has been the gift that keeps on giving they've grown at a 40% compounded growth rate since 1999 facebook has a little more hair on it. but even with that, we still think the numbers have been lowered to levels that they can achieve and hopefully exceed the one name we have not recommended for the first time in ten years has been amazon for reasons that we can discuss. i would assume we're probably running out of time. >> we are running out of time but we'll have you back on because a lot of people like amazon because it lagged last year >> i know. >> thank you it's good to have you. we do have 40 minutes left to go before the bell. we're seeing quite a divergence. the dow is on track for a record close, being buffeted by the banks and industrials.

the nasdaq is down 1.3% as technology gets hit on these rising rates it's the worst performing sector on the s&p, which is flat right now. coming up, how americans really feel about the economy, what that could mean for policy in the midterms. we have new results from our exclusive survey next. as we head to break, check out our top searched tickers ten-year note yield back in the top spot after a big jump in yields today 1.66 on the ten-year tesla taking a step back ford having an 11% move up on its ev plans apple and the nasdaq wchhi are both down. we'll be right back.

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36 minutes left of trading dow up about 275 new results from cnbc change research poll are shedding new light on how americans really feel about the economy and there could be big political

implications kayla tausche is here with details. >> american voters polled by cnbc and change research in late december have an increasingly pessimistic view of the economy as the cost of living rises and the pandemic surges again. they're having a hard time seeing the light at the end of the tunnel a majority of democrats and republicans say inflation is a major issue. 53% of respondents say prices will stay high for a long time 25% believe they may never come down and despite widely available vaccines and treatments for covid-19, only a third of respondents polled as omicron began spreading believes the pandemic will be better this time next year it's an outlook that could be costly at the polls this november in a midterm election seen as a referendum on the biden presidency with the majority of respondents saying the president has control over issues like the coronavirus, grocery and gas prices, the supply chain and unemployment but little consensus on what policy fixes would help.

the $1 trillion infrastructure law passed with bipartisan support, but only democrats say that will create jobs. the same for the stalled build back better proposal biden voters saying it will grow the economy and most trump voters saying it won't brian diest said again today that package would be the direct answer to americans cost concerns, but the policy that had the least support among voters to grow the economy is keeping corporate taxes low. 58% said that would not do it. >> thank you very much for that breakdown. of course, more details from that survey are available on cnbc.com we have been improving over the course of this final hour of trade. we're now higher on the s&p 500 by 3 basis points only, but nonetheless, back in the green the nasdaq is down 1.3%. the dow is surging

currently on course for a record close. energy is the best performing s&p 500 sector today and this week as opec meets. we'll discuss the outlook for crude and other commodities with helima croft here's a check on yields which have surged higher over the course of the last couple of days the ten-year 1.66 now. 30-year getting closer to 2.1. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed.

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30 minutes left to go in the trading session. let's check in on individual market movers. crude stocks hanging on to gains. the push higher coming even after the cdc recommended avoiding cruises altogether. those stocks are up nicely 1% to 2% shares of coca-cola moving guggenheim moving the stock from buy to neutral the stock is up 1.8% it is on track for a record closing high, though it has underperformed pepsico, only up 14%, versus pepsi 20, in large part their big exposure to away from home drinks they don't have the food business like pepsi, which was also strong during covid >> amazing bifurcation in the market today with stocks like that about to have record closes

and other ones down double digits, some of those more high-priced tech stocks. the nasdaq down 1.3% time for a cnbc news update. >> here's what's happening the head of the chicago public school system says that classes will be canceled tomorrow if the teachers union votes to switch to remote learning teachers in the school district are battling over safety protocols. the vote is scheduled for this evening. president biden hailing an agreement to delay 5g wireless deployment amid aviation safety concerns at&t and verizon pushing back two weeks the 5g availability. transportation regulators say they will not seek further delays unless there are unforeseen safety issues and a former theranos whistle-blower applauding jurors for finding elizabeth holmes guilty of fraud. >> i think a big lesson here is

that this silicon valley idea of fake it until you make it and constantly iterating your product and testing that product on new users really does not work when it comes to health care at the other end of that product there's a real person who may have a real medicalcondition and you really can't play with peoples lives like that. >> holmes faces up to 20 years in prison but is likely to get a shorter sentence an appeal is also likely sara, back to you. >> thank you just under 30 minutes to go before the bell. dow is going strong thanks to names like goldman sachs, caterpillar, boeing, jpmorgan. it's on track for a record close. s&p 500 is flat. energy the best performer. technology the worst that's why the nasdaq is down 1.3% after the break, manhattan real estate just posted its biggest year ever.

we'll discuss whether the market can stay hot with steven witkoff. and ford's chart today looking a lot like tesla's yesterday as the stock sees a big move up. we'll tell you what's driving that ahead on "closing bell. well, would you look at that? jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon! ugh. unbelievable.

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. welcome back here's a look at the s&p sector heat map you can see energy up 3.4%

compared to health care and tech down more than 1%. the intraday chart for the s&p 500 does show that steady improvement over the course of the last hour and a half with 23 minutes left in trade. we're in positive territory just about now on the s&p >> i think the real estate sector there is also slightly in the red, but manhattan real estate surged to record highs last year. total sales topping $30 billion with 16,000 contracts signed for more on the real estate boom and where it's going, let's bring in investor and developer steve witkoff, chairman and ceo of witkoff i don't get it the offices are not fully reopened foreign buyers have not really come back. who are all these buyers >> they are everybody, sara. mortgage rates are cheap tons of money was made in the last year, year and a half i think people want to own something substantial.

that's why the -- there's -- it's the biggest momentum trade i've seen in maybe all of my career >> i remember you joining us last year and saying that the rebound would just be temporary. it would be short-lived because it was a price correction. you didn't believe it had deeper roots. are you still saying that, this is a short-lived phenomenon? >> no, i think good things are happening out there. there's been a good mayoral election, in particular in new york i think people are more confident today. i think the vaccines have been effective and omicron is sort of seen as not all that much more than a cold. it's a little bit like that. i just think the markets are not reacting to it in a way that they did to covid. so all of that blended together means that people want to buy again.

there's no doubt that manhattan has exceeded its prior highs recently it's a surprise to many, but it's a healthy thing >> when -- healthy on one level, steve, but if you're saying it's the greatest momentum trade you've seen, are there not concerns that we may be in the last run-up for what really -- despite the blip of the pandemic -- has been a 12, 13-year bull market? >> i don't think so. we just bought a very big deal in new york, 7611. it was a problem that was -- it was in foreclosure, all kinds of mortgage defaults, we bought the debt and turned it into ownership. we think we'll sell quickly. i'm not pumping the deal that we just bought, i'm giving you what i'm going to say is a granular answer to your question.

inflation -- there's no doubt there's inflation out there. payroll costs are way up commodity costs are way up so i think people sense that, and if you can buy something existing today, it is -- the trade is on. i'm down in miami now. there's no inventory to buy down there. you can't buy on the beach, it gets snapped up almost immediately. there's no homes on the water to buy down here. this is not just a high-end phenomenon this is a phenomenon that is gravitating to the middle -- the middle piece of the marketplace. i think there's a sense that we're in a goldilocks period >> so what happens, steve, if mortgage rates do start to rise here as many are expecting with the fed about to start raising interest rates how does that change the calculus for both new york and miami and the luxury market?

>> miami it unto itself. there's jobs coming down here left and right financial firms are coming down here, tech firms coming down here miami is a sophisticated city. and people are beginning to understand that. so i think for miami, it's an inventory issue. new york city, i think there's a -- a sigh of relief that we now have a government that is a lot more sensible. that is hopefully reaching out its hand to the business community and saying let's do this together. new york has its own issues. it has budgetary issues, there's been a lot of giveaways to the unions over the last couple of years. if rates were to move hard, what would that do to new york city from a budgetary standpoint? hopefully they understand that, have a feview of it and know ho to handle it

if you look at the forward yield curve, we're not talking about massive -- the dot curve does not suggest massive interest rate increases i think -- i think there's a bunch of indicators in the inflationary picture that probably means that -- i don't want to call it transitory, but means maybe 200 basis points of the current indicators today go bye-bye in the next 12, 18 months and are much related to the supply constraints out there. >> steve, would you be as constructive on commercial property in places like new york >> i think you have to distinguish between the new stuff, which is what everybody wants to be in today for all the obvious reasons. you get a cleaner air environment. so everybody wants to be in the new stuff. i think you have to have a view -- look, i think office

building trades are risky territory. particularly if you're not sure about where the political environment is so as an example, if you believe that people are going to drive business out of new york, then i think that'sa tough trade to make, office buildings. >> but there are people who are always going to have to live in new york the cost of building in new york is going up substantially, which is probably something to address on another segment here. but what it tells you is, for instance, with the property we bought, we built -- this thing has been built already, but we don't have -- we don't have, like, escalating costs that we have to think about in this project. i think if you're buying dirt in manhattan today, you really have to think about where the costs of building are going to go. for people who can buy today at a relatively intelligent number, it may look like a bargain in

18, 24 months. >> that's sort of what i was going to ask you you get into hotels, residential, commercial, all around the country where you mentioned you're buying the twisty towers in chelsea, that's almost a $1 billion deal that's residential what are the next projects you would be looking to do was kind of categories do you see the greatest opportunity in the next five, ten years >> the twisty towers, as you call it, we'll name it something else, by the way but the twisty towers also have a hotel. by the way, we like the hotel market in manhattan. i'll tell you why we like it we like it because we actually do believe that the union is doing a very good and positive job in creating this legislation to have special permits. the whole notion of special permits for hospitality in new york is to reduce inventory. if you -- if you talk to the people at the hotel and culinary

workers union, they will tell you that they believe -- i believe it too, by the way, that there would have never been this amount of workers on the street if we didn't have an inventory problem in new york when covid hit. i actually like the hotel business in new york i believe that the banks are going to go and be reluctant to lend you wake up in two, three years, there will be little inventory i think no matter what happens to new york politically, you will see a healthy hospitality business in 24 to 36 months. if those conditions exist in other marketplaces, you know, we're very focused on it we made big bets in miami. really we're long miami in a substantial way. we own it cheap and we think, you know, those are -- that's a good marketplace to be i saw a little blush on cnbc

maybe about two hours ago about adam newman buying apartment buildings in -- >> yes >> yeah. so that's an example of where people think people are moving they want good weather in miami, the only thing miami has going against it is hurricanes hurricane season is a natural disaster but it's pretty small compared to what you're up against in other location like california i think people are beginning to understand that. >> the temperature has really dropped here the last couple of days i'm envious of you being in miami. thank you for joining us today >> my pleasure have a great day up next, ford surges on ev ambitions and social stocks drag on tech. those stories and mohewere wn go inside the market zone.

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it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contracts prices around. [ding] get e*trade and start trading today. welcome back here's what's coming up ahead on the second hour of "closing bell." a top wealth manager tells us why she says chips are the new oil and weighs out her favorite names in the space helima croft will break down the moves in energy. and chart experts will give us the key levels to watch for in tech stocks in light of today's selloff. we'll talk to the ceo of redfin about the one part of the

housing market that he says will be super hot mike santoli is here to break down the crucial moments of the trading day today we have chris verrone back let's start it off with the broader market stocks are diverging in a big way today. the dow is on track for a record close. any close higher for the s&p will be a record we could get there the nasdaq has been hit hard, though it is recovering. mike, the defining feature of the last two sessions is a big jump in treasury yields. yesterday tech held up well. today, not so much why? >> i mean, i don't know that i draw the line of causation from what yields are doing and then stocks reacting. people are getting more relaxed about how the economic outlook is shaping up. the idea that, you know, maybe we're nudging up inflation expectations and things look like they're actually looking better also, repositioning effect going

from stuff that was steadier and maybe a bit crowded and expensive in the nasdaq area and reallocating elsewhere all of that gets yields higher banks and energy up. the nasdaq 100 around 2:00 bounced perfectly off the 50-day average. chris can tell you whether that's meaningful or not i think it's hard to separate the first two days action from what people think should happen this year and therefore are trying to execute these rotations. >> is it meaningful, chris what do you make of the intraday action >> what i think is important, nasdaq 100 really has not made a new high since november 22nd so the last couple of weeks the s&p pushed to new highs, you really haven't done it with the biggest names. i think that's a good sign that the market has been able to hold up here despite all the anxieties with the average stock getting better we've started to see the s&p really get involved in this market we talked about a subtle value trade that's begun to emerge

it's not so subtle anymore i think it's becoming more pronounced when you look at the nasdaq 100, you've seen huge, huge inflows over the last six weeks. if there's a risk here, it's to the top of the market while the average issues are getting better >> social media stocks being hit ho today. julia boorstin has the breakdown. >> pinterest shares ending the day down about 9%. that stock is off over 51% over the past 12 months, this after guggenheim cut its price target on the stock this on data that guggenheim has showing users declined for the second straight month. snap, that stock is down about 5.5% guggenheim, though, does have a buy rating on snap, indicating that data shows sequential audience growth in the u.s.,

saying global audience downloads indicate moderated growth trends wolf research which has a buy rating on snap says the company's's fundamentals are likely to be weighed down by apple's changes in ad targeting saying those trends should improve in the second half as advertisers adopt work-arounds if you look at twitter, it's off about 4% shares of meta platforms are pretty much flat, they were down a couple percent earlier today sara >> humming back like we have seen with the nasdaq the number one performing stock in the s&p 500 today, ford phil lebeau is here to explain why. >> a big move for ford, up almost 12% after the company said when it comes to the f-150 lightning we will double our production plans here's what the company is planning to do with the new all-electric f-150 production will be almost

doubled. 150,000 annual production by 2023 and, by the way, this week the company will open up those reservations now you can convert those into orders as you look at shares of ford up 170% in the last year. remember, the company is sitting on about 200,000 reservations for the f-150. look at shares of general motors the company released its fourth quarter sales. they were down 42.9% you might be saying that's terrible that was better than expected. fairly optimistic commentary about the chip supply improving. one reason why the stock was up more than 7% today gm lost the crown of number one in auto sales in the united states it was toyota edging gm by a little over 100,000 vehicles tomorrow, you do not want to miss our first on cnbc interview with mary barra. she will be unveiling the company's silverado ev, the all

low blood pressure electric pickup truck its answer to the f-150. that's on "power lunch." you don't want to miss what mary has to say not only about this but about the market overall back to you. >> looking forward to that, phil lebeau chris, just like that, ford, gm and tesla are some of the best performing stocks in the market in the first two days of 2022 which do you like the best >> the auto theme has been building for months and months when fwe look for root moves, we want broadness to it it's gm breaking out from a three, four-month pause. look at toyota and bmw, daimler across the board whether we're talking about the asian autos, europeans, domestics this is a strong group, so are the distributors and auto parts there's a broadness to the move

and that's something we want to be involved with >> looks like we have two minutes to go in the trading day. things have recovered. the nasdaq still down 1.2% dow on track for a record. mike, what are you seeing in the internals? >> it's been pretty split. if you look at the volume split in terms of advancing and declines volumes, 2-1 to the positive side all day. on the nasdaq, it's been just about the reverse ratio. you have the equal-weighted s&p, that has been steady it's up almost 1% right now. look at the pure value versus pure growth. so far in the first two days of this year, that's been a pretty acute way of looking at this performance split. you can see it's more than 5 percentage points. this is the cheapest stocks in the s&p against the fastest

growers. it has narrowed slightly in the last hour or so, but still pronounced the volatility index did nudge higher even though the s&p 500 on which it's based has not had much of a move a bit of the kind of shakiness in some of the largest market cap names are clearly making people wonder if it's going to have weird vibrations. but under 17, still looks benign and still in that kind of downward trend that we've seen for some time. fed minutes tomorrow we'll see if that knocks anything loose >> for all of the declines we've been talking about for the nasdaq today, it's, in fact, flat week to date, just not enjoying gains to start the year in the same way the dow has. energy, financials being two of the best performing sectors both yesterday and today. energy is up 3.5% today. banks up 2.6% as oil prices gain and yields rise.

the yields are probably the story of the year so far the ten-year up to 1.65 stocks health care and tech are down today more than 1% as the bell goes, we are fractionally lower on the s&p 500, just dipping back into the red at the close the nasdaq down 1.3% the dow higher by 0.6% ♪ record close for the dow couldn't quite get there for the s&p 500. welcome back to "closing bell," i'm sara eisen with wilfred frost and mike santoli tech stocks under significant selling pressure today coming up, you'll hear from a chart expert who says tech could take off once the fed begins to hike interest rates. not necessarily conventional wisdom first up, chris verrone is still with us. mike, i'll turn to you on the big divergence we saw in the

markets today. the nasdaq under pressure. another jump in bond yields despite some of the data which showed manufacturing missed. if you break it down, those prices paid by manufacturers in december actually fell -- came in below forecast, which could be a sign that inflation is peaking. how do you read it all >> it was a miss in terms of the headline, ism manufacturing, but at a high level. we're still up at 57 or something like that. i think the downside surprise and the huge drop in prices paid probably helps things a little bit on the fed front obviously it's not decisive at all. very strong sort of labor market indicators today, too. really it seems to be a repricing for this idea that the economy is going to stay in a pretty brisk pace at this point. we exited 2021 maybe 7% real gdp in the quarter 5%, 6% inflation on top of that. that's kind of boom time

numbers. the real economy proxies have been doing well here tesla loses the 1,200 mark after a big day yesterday. apple slips back so you do have a little bit of the concentrated heavy bets in the big nasdaq names just giving some back after a year where we had a controlled demolition of the speculative growth and the hype yield sectors of technology almost a mini year 2000 rollover but it's not really impacted the rest of the market >> chris, i wanted to come to you for your outlook on the yield curve and banks and what it means for each of them. >> i think wilf clearly related this, all year, for the last nine months, this 1.70 level on ten-year yields has been the line in the sand i think we'll punch through it here what has been telling to us over the last month or two is that the covid concerns started to accelerate in early december they couldn't break yields down.

the resiliency in yields, and the move in banks is the top 1% in moves historically. that's the spark of momentum we need for this group. i would encourage you to look globally the move in german yields is a big story. german yields have not been above zero in about three years. they're right on the goal line i think you're setting the table here as we look to '22, the european banks working, u.s. banks working on the back of higher nominal rates >> let's talk about chip stocks, which sank today, but outperformed the nasdaq amid the broader selloff. the smh etf finishing down about a half of a percent. joining us is emily hill great to have you join us. what is your view on this sector for the year ahead is it vulnerable given recent out performance over the past couple of years? >> the semiconductor sector was up about 44% in 2021

when we first started recommending semiconductors back last spring, you know, my inclination would have been to buy the semiconductor index. now i do think that, you know, we know the semiconductor revenue pool will double by 2030 so absolutely you need holdings in semiconductors in your portfolio. in our view, it's time to be more selective rather than just buy an index because there is some danger as supply builds up and the supply chain shortages ease that you could run -- that we could run into an oversupply issue. >> what's your take on the smh, chris? >> certainly it's been leadership it's been leadership for a number of months it stands out to me that some of the bellwethers in the semis has not made a new high here i think we need to raise our antenna a bit. they started to hit the internet names, software names does that mean they will move on to the

semis? you kind of have to pick these apart one by one there are names we like. micron trades well but just watch some of those real momentum names. they have not made new highs here and nvidia comes to mind. >> what about you, emily which are the names you say are worth keeping in your portfolio even if you think the group has mostly peaked? >> you know, in 2021, taiwan semiconductor was up 12% when the rest of the index was up 45%. it surged by 9% in the last couple of days there's no real material news that would drive that kind of increase other than there's some minor things other than the fact it's at an attractive price we worry about a name like micron a little bit because it's more of a commoditized part of the semiconductor sector we like the equipment or tool

manufacturers like lam research, or applied materials which was mentioned here so, yes, it's important to be in companies that will be insulated from the cyclical nature of this sector >> in terms of overall sector picks, emily, for the year, what is your top pick >> my top pick is lam research i would say taiwan semiconductor is a close second. there's more risk in that name because it's based in taiwan and i think that's one of the reason the price has not kept up with the rest of the sector those two would be my top picks in the sector. not the cheapest, but -- >> yeah. mike, where is wall street where are the analysts and consensus around some of these chip names that have led the

market >> i think people are generally behind them still. mostly as a bellwether group it's kind of a don't overthink it type of position. as i mentioned not long ago, i think the semis doubled the s&p 500 performance on a 1, 3, 5, ten-year basis it's expensive to bet against it as a group whether people think hot money proxy like nvidia has gone too far or not, that's where i think the debate lies. the other piece of it is it doesn't seem like a sector that rewards laggard bellwethers very much, but that's one of those things that's right for debate as well. >> emily, i wanted to get to one of your other calls, which i found interesting. that was on the newer ipos and some opportunities there because of the big selloffs we've seen after the huge interest in ipo day from retail investors.

which names are you looking at there? usually this is the first place people look when they talk about some speculative activity and frothy markets we've seen, those giant ipo pops >> that's a good pop if you look at the renaissance ipo etf which contains companies that ipo'd over the last few years, it was down 10% last year very substantial part of the small cap index generally is in a bear market. if you're careful, there's some good names out there many of them really sold off today. renaissance ipo etf was off 3 ps3%, 4% one name we like is a company called big commerce, which ipo'd in august of 2020. as has happened with many of these ipos, it generated real retail excitement and went through the roof now it's trading -- it's not

quite down to its ipo price. but it's trading in the low 30s. it's earnings in november, it's growing -- it's been growing revenue 30% per quarter the last seven quarters it has a very disciplined, impressive management team that's a speculative bet definitely but there's some opportunities there. i would probably -- i would be a little more wary of the companies that went public via a spac there's some good opportunities out there. i don't want to call them broken ipos, but flattened ipos, yes. >> chris, i was going to ask whether you think energy can continue its strong start to the ye year >> yeah, we can. one of the relationships we look at is energy versus software we call it loathe verse love the part of the market people despised for a long time is

breaking out versus the part of the market that people have loved for a long time. so energy over software is a pair that we love here names like chevron, schl schlumberger, these are stocks that have consolidated over the last couple of months as oil came in. one other point on some of the speculative parts of this market, whether it's solar, ipos, bitcoin, all of these are in bear markets. so the speculative phase of this cycle is probably behind us at this point all of these peaked in february, march, april of last year. i think it's unlikely they come back with the same vigor that they had 18 months ago >> emily hill, thank you very much for joining us. chris vrer rer verrone always go see you. >> thank you. we're just getting started on the second hour of "closing bell." up next, more on energy when

helima croft joins us to talk about today's opec meeting and later, the ceo of redfin we're back in two minutes. your dedicated advisort f, will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

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with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. . energy is the best performing sector today rallying by more than 3%. brent and wti settling higher on the heels of opec plus agreeing to raise its oil output by 400,000 barrels per day. let's bring in helima croft from rbc capital markets. great to see you as always first, big picture question, and you can factor the latest opec news into, what is the demand/supply imbalance looking like this year >> we're looking at a situation where oil demand remains strong. there had been concerns around thanksgiving about omicron and demand impacting this new variant. because we don't have

large-scale mobility restrictions put in place by governments, it looks like demand will hold up and why we're focusing on the supply outlook. if we're in a tight market are the opec barrels enough to keep prices contained >> in terms of the big challenges for the year ahead, how real is the eu energy shortage >> i think it remains one of the most important geopolitical stories we're watching the whole question about what happens with this russia/ukraine situation could impact what the outlook is for energy in europe. we were already concerned about shortages of natural gas in europe, issues about was russia playing politics with their pipelines, and if we have a russian invasion of ukraine and sanctions on russia, there will be real concernsp reprisal of the 2009 situation where russia held gas from europe negotiations will continue this week on this situation

i think that that is a story that will impact not only gas but potentially oil because of concerns about substitution for oil for gas. >> in other words, it will drive oil prices higher because you can use that oil for the gas that's withheld from russia? >> absolutely. one of the reasons why we saw a rally in oil prices at the end of the year was concerns about shortages of natural gas leading to more demand for oil for substitutions. so i think this russia slk ukraine story is one of the most important geopolitical stories that could impact energy and we could see this situation evolve over the next couple of weeks. >> how much excess supply of natural gas is there in the u.s. and how realistic that a supply chain could be established for the long term from the u.s. to europe as opposed to just a stop-gap measure while russia is playing some political games with europe? >> we've seen rising u.s.

exports, that's been a big story. the diversion of cargos from asia to europe but right now we still have infrastructure constraints so i do think that the question going forward is going to be how much investment is there in natural gas. i do think it's going to be a real issue on is the investment there to basically bring on enough supply going forward? >> becack to what you said about demand, it's strong because there's no lockdowns, omicron is mild what about china, though china has this covid zero policy where it just locks down parts of the country and it's hurt the economy there. is there a ceiling to demand as long as china is still in that mode >> i mean, again, the question is how sweeping are the lockdowns, how sustained are they in china? china is so important for oil

demand right now what we're seeing is that demand is really holding up the question would be, i would say, do you see restrictions in the u.s. that could impact gasoline demand? gasoline demand is so important, the overall oil demand stories i would be watching what happens here as well >> we were just talking with chris verrone about the interaction between dollar and commodities. if the dollar does rise, as rates rise, is that a problem? >> i mean, obviously we watch this closely because oil is priced in dollars. but right now i think more importantly is to watch the sort of fundamental picture in terms of what we are seeing in terms of the covid recovery, in terms of the economic reopening, and do we have a challenge in terms of supply? anumber of key suppliers are struggling to make their opec commitments. libya is down several hundred thousand barrels, nigeria is struggling with supplies i think the question is is saudi

arabia prepared to put more barrels on the market if needed. >> we had a cnbc research poll today that showed disapproval for president biden in handling the economy and inflation was the top of the concern so now that we're getting back to $80 a barrel, what numleversn the biden administration pull here as we get into the midterms, what else can they do? >> this is a big question because energy is so important in the inflation story the biden administration i don't think wanted to be in the position of asking for more bar barrels. so the question is can you get more out of the united states? yes, u.s. production is supposed to grow but when you're in a supply crunch you have to ask opec for more barrels. so what does the u.s. bring to the table with saudi arabia if the u.s. needs more barrels? >> given all of these factors,

what's your target for the year? >> we look at brent prices averaging in the low 80s i think, again, what you want to watch for, that wildcard downside risk would be do we get progress on the iran nuclear talks? that brings back an additional 1 million barrels a day of iranian exports. if you want to think about oil beyond $80 brent, i would watch the ukrainian story closely. >> energy stocks up 6.7% in the first two trading days of the year starting off at the top spot, much of how they spent 2021. helima croft, thank you. >> thank you very much for having me. technology is the worst performing sector on wall street today. up next, we'll discuss whether there's a buying opportunity amid some of the carnage we've seen later, we'll look at why the economy could be ready to spring ahead once this latest covid surge ends we'll be right back. (kate) this holiday, verizon has the deal that gets better and better

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the nasdaq, the worst performer of the three major averages, finishing the day lower by more than 1%. among the worst performing stocks on the nasdaq 100 today, jd.com, and some cyberstocks like crowdstrike let's bring in jeff degraff. i want to get to you on the broader market the s&p 500 going into a fed rate hike. that's the underpinning and what some of this tech selling is all about. reminds us what happens about where the market goes as the fed starts hiking rates. >> thanks for having me. thank you very much. happy new year what i'd say is as we go back and look at the markets going back to the early 1960s, we have a lot of various cycles, monetary cycles. you will see from the first chart that it's really not the end of the world when you have

the first rate hike. the market does pretty well going into that first rate hike. i think really a lot of that has to do with historically the fed that is behind the curve they wait, sit on their hands and make sure the recovery is self-sustaining historically that tends to be good news for the overall market it does shift some of the factors and some of the sectors. some do better than others one that we've been focusing on and trying to position clients towards is more high quality and away from beta that's going to be important for 2022. >> what about tech in particular how vulnerable >> yeah. tech is what we consider -- what we call and coined concept finance. it's these names at the fringe they're better storied names than they are underlying fundamentals they're sort of requiring this excessive liquidity to do well to raise capital once, twice, three times in additional

offerings. i think it's best represented by things like the ipo index and the spac index unfortunately a lot of those names are also tech names. software names came out. there's some crypto in there as well it's a smattering. some payment names and the like. when we look at tech, going back to 1964, in the face of the first rate hike, it actually doesn't do very well it's one of the relative laggards interestingly enough, after the first rate hike it starts to find its feet and do better. we have some tough sledding if we presume the fed won't race rates until march, we probably have a tough first quarter it should line up and start to find some support as we get into the second half of 2022. >> you have another chart for us as well relating to the fed and the broader markets. >> yeah. i think the fed is in a really difficult position here. they're tapering and they plan on raising rates if you remember from chemistry

101, what you want to do is isolate one variable at a time and see what the impact of that one variable is on the end result so, as the fed sort of double dips here trying to pull two levers that i don't think they really understand what the impact might be on the economy, i think there's the risk of a policy mistake one of the things we look at is where the yield curve is today, which is roughly 100 basis points in terms of steepness between 2s and 10s historically, that's at least 190 basis points before the fed starts raising rates they're already looking at taking back this liquidity in a relatively flat curve. the good news over the last two, three days, yields have popped, which is great we want to see that curve steepen. if we see a flattening curve, that will be a sign of a potential policythe making >> in other words, that they

were too late and the economy is already in a downturn? >> yeah. they're too aggressive the backend is not supporting a strong economy and they're taking away the stimulus a little too prematurely that will be important to watch as we go forward frankly, i would have expected the second half of 2022 would have had a steeper yield curve we had omicron and some other things that had an impact. and you pointed out china earlier. it will be important to see this continuation of the steepening of the curve that will support things like financials and it will support things like some of the cyclicals versus defensive names. that will be important for the story of 2022 to continue. >> which sector looks most vulnerable >> i would say tech is -- from the highest flying to the transition, that one looks vulnerable to us i would also say some of the discretionary names look vulnerable to us as we get this shift. it's not -- discretionary is a

diverse area it's things like leisure, leisure products, games, some internet retail names. those look more vulnerable housing still looks good i think that's good news for the underlying economy and a sub sector of discretionary that looks good but tech and discretionary are two we're watching carefully as we've seen deterioration there, that looks more than corrective, it looks like it's end of cycle for those names. >> i feel like tech has a lot of diversity within it, too when you say tech, are you thinking mega cap tech those are acted defensively lately or are you thinking higher growth on unprofitable tech. there's the semiconductors where do you go? >> yeah. a lot of siccyclicality with ses versus software. we're skewing away from beta more towards the higher quality names. we're equal weight semiconductors, underweight software if there's an area of tech that looks interesting to us that

started to emerge, it's com equipment. the jds uniphases of the world they have been left for dead for most of the tech rally and they've been coming up strong. >> what's the view on the dollar >> dollar is in a long-term uptrend. it's consolidating i think it will be firmer. i don't think problematic. that's actually good news not bad news one thing we've been debating is whether or not because of our energy exports now, if, in fact, we've become more of a commodity currency that the demand for oil is also increasing the demand for dollars. so there's something to that as we've seen the sign flip in some of the stats we use. that's important but, again, i think it's bullish for energy that's one of the areas of the market we like a lot >> that's pretty interesting jeff, thank you for joining us always good to check in with you and your charts.

>> happy new year. time for cnbc news update. we have kelly evans. >> hi, everybody i'm kelly evans. here's your cnbc news update hundreds if not thousands of people are still stuck on a 50-mile stretch of i-95 in northern virginia. it began yesterday afternoon with a traffic accident during that bad winter storm. people were forced to sleep in their cars in freezing temperatures many with small children, pets and little to no food. the virginia department of transportation says it expects to clear the road by tonight, but their efforts complicated by snow, ice and abandoned vehicles attorney general merrick garland set to speak tomorrow about the justice department's investigations and prosecutions of capitol riot suspects federal prosecutors announced last week they charged more than 725 people with crimes in connection with the capitol riot. and novak jockdjokovic will

a chance to defend his title after being given a medical exemption. djokovic has declined to say whether he's been vaccinated unvaccinated participants are not allowed to play unless they have a medical exemption a lot of small businesses say they were mistakenly denied aid. that cnbc investigation tonight on "the news" after jim cramer at 7:00 eastern. sara, back to you. wilf, back to you. >> i will pick it up there thank you. fintech and cybersecurity among the hardest areas in the tech sector -- the hardest hit areas in the tech sector the losers and fallout straight ahead. and will rising interest rates finally cool off the record increase in home prices which are up4%eaov yr in december.

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the nasdaq selling off hard in today's session, but finishing off the lows down 1.3% let's look at cybersecurity and fin fintech. frank holland has the details. >> fintech down more than 5% today as the ten-year continues its relatively rapid rise. about 30 basis points higher over the last month. top holding block, down more than 5%. robinhood down 6%. affirm is down 10% paypal down for man a percent. the hack cybersecurity etf down almost 2%. top holding there, cloudflare down 10%, off nearly 30% over the past month zscaler down 8%.

cisco, fortnet and palo alto also down. up next, the ceo of redfin on whether he sees a slowdown in the hot housing market. and later why a newport problem in china could signal more trouble ahead for the u.s. supply chain and consumer prices

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all-time record according to a new report from redfin the median home price hit $361,000 here to break down what we can expect in 2022 is glenn kelman, the ceo of redfin. happy new year to you. >> happy new year. >> you're always smiling i can see why when home prices are up 14.6% year over year in december pretty astonishing >> yes, it is. it's still on a tear the housing market won't give up people are starting to worry about inflation, though. >> are you concerned has it been too hot? i'm interested in some of the ♪ notes you shared >> inventory has been so low that's been the factor on sales volume, now you have about three quarters of home buyers significantly worried about inflation.

for some people that means they want to hurry up and buy a home before interest rates increase, others are starting to step back from the market. we have done an unusual number of consultations with people who want to prepare their homes to list we expect to see more inventory for the first time in about a year that should drive more sales my guess is that the housing market will have a shorter season than usual because interest rates are going to start increasing through 2022. >> in terms of where things remain incredibly hot, there's one state in particular that stands out >> florida oh, my gosh! florida! everybody is leaving new york for florida. both tampa and miami so, new york is the number one origin city for people moving. miami is the number one destination of the five -- excuse me, of the ten highest neighborhoods in america, five of them are in florida we're seeing it on both coasts it's been incredible with the gulf side and the atlantic side.

florida has low taxes, people are drawn to the warm weather, especially this time of year the migration has been intense >> we heard the same thing from a real estate developer earlier, just doubles and tripping down in miami especially. we're in this hot of hot housing market why is the stock down 45% or so over the last year when things are so strong in the market? >> oh, man, such a tough question i think you would have to answer the question about why the stock was so high in the first place redfin stock went up from $10 a share to $90 a share, now it's in the 40s or 30s, i have not checked today. but fundamentally the business is growing very fast 30% to 50% one quarter after another. we're getting increasing leverage over operating expenses we're taking market share. we're delivering a fantastic customer proposition all we can do is keep building the business and getting better and better at delivering fantastic service to our

customers. and the street will reward that. >> glenn, going back to the broader housing market, you said we'll have a shorter season this-this year as people rush to get ahead of rates going up. is it a big correction for the market a plateauing are you fearful of a major correction >> i don't think we'll see anything like 20088 jus because people are not over their skis with mortgage payments credit ratings are high. we're unlikely to see a major wave of foreclosures you will see a slowing in home buying demand if interest rates get above 3.5% for a mortgage. my guess is that we'll see a repeat of 2018 when rates increased in the second half of 2018, there was a step back in home buying demand because inventory is so low, i don't think there's going to be a significant step back in prices we can't see the type of price appreciation we've seen over the past two years

it's unrealistic and undesir undesirable, but i think we can see stable prices, reasonable home buying demand we're still above 2019 levels. it's close to 6.7, 7 million sales, that pace will come down one or two notches >> what about rents, which have also soared and as you know are such a key component of inflation readings in this country. do they keep going up, too >> well, some more inventory is coming online. i think rents will continue to increase but not at the rate we saw over the past two years. the landlords were just dying to raise rents when there was this eviction moratorium and they finally got a shot at doing so and they sent them through the roof we won't see the same type of rate increases in 2022 that we saw in 2021. people are not just going to be able to afford it. >> glenn, what's your take on lumber prices which obviously pulled back quite a lot in the

november time and now they're soaring again, and whether that signals unhealthy action in the broader residential market >> yeah. i think it just signals that home builders are trying to builds a many homes as they possibly can the whole economy is in such a jam. we have all these ships piled up outside of every harbor. it's hard to get the goods into the united states and the lumber to the construction sites. the fact that people want to buy homes, it's a good thing the fact that more homes are being built is also a good thing. the challenge here is to match supply and demand. right now the economy is in this place where lots of people want something and we're trying to get the goods to them. when we do that, i think we'll have a very healthy housing market >> when does it peak >> do you mean in prices or sales volume >> sales just the strength of the market

in general, i guess. >> i think we're likely to have strong sales in '22. my guess is they won't be quite as strong as they were in '21. i think prices will be stable. they may increase modestly because there's such an inventory shortage for you to imagine a housing crisis coming down, you have to imagine the price of other goods will also come down, that doesn't seem likely now. i just think it's a steady as she goes market. i know that doesn't make much of a headline for you i'll try to be more exciting on my next appearance we could predict an apocalypse or just an amazing rally of all time it's just going to be a pretty darn good housing market >> that was very exciting. your enthusiasm and your performance make it so glenn, thank you never disappoint >> good to see you all bye! >> happy new year. up next, mike santoli heading to the telestrator with a look at the shocking number of americans who are quitting their

jobs in the latest report we got today from the labor market. later, big supply chain concerns covid outbreak weighing on one of china's top ports we'ldiusl scs what's at stake when "closing bell" comes right back 't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better.

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let's go back to mike santoli who is taking a closer look at today's labor data which showed a record number of workers quitting their jobs in november so many quitters, still. >> unbelievable. almost 1 in 30 americans quit their job in november. 4.5 million or so. this is the result here. this is the number of unemployed workers per job opening. that's per listed job opening. job openings came down a bit, but not enough to actually send this number any higher right now it's approximately 0.65 unemployed workers per job opening. in other words, about 65 unemployed for every 100 jobs out there. very much a supply constrained market tight labor market big questions as to whether people are permanently out, indefinitely out, about to come in if the economy and covid cooperate. that's one big question for the fed. another area where we are

spring-loaded for a comeback, this is the retail inventory to sales ratio. look at how low inventories are to the recent pace of sales. extraordinary demand we've had and the supply problems as well. just by rebuilding inventories coming into this year, clearly should be a bit of a tailwind for tailwind for manufacturing, for imports and things like that this is one of the reasons or two of the reasons why i think a lot of folks feel that this current omicron surge is not necessarily going to knock the underlying economic momentum off course just yet, guys. >> i wonder also if it filters into the whole inflation story and what we saw today in bond yields and that is despite the weaker manufacturing numbers and prices paid there, wage inflation could be staying with us as we get these kind of numbers and quitters, employers will have to increase wages and salary >> the goldman sachs wage tracker seems like a stock you'd want to buy because it's

breaking out on a multi-decade frame up 4%. so that piece of it, for sure, is going to get the fed's attention. big question, of course, is to just whether we get through the next couple of months and we have very easy comparisons for the inflation data and lapping quarters to where we had very, very low prints and we'll see what the going rate is and we'll get done with the taper and see where things stand there >> thank you up next, a covid outbreak shutting down a major chinese port we'll break down what this means for the rulistggng global supply chain when "closing bell returns. ♪ ♪

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chinese authority announcing lockdowns across the country due to renewed covid fears there the newest casualty is a major industrial hub and the third largest port in the world. a partial closure was announced originating from a garment processing company for nike, a kid aus, uniclo and puma lori ann is here with more on what impact this could have. what is the significance of the partial shutdown >> good afternoon, sara.

from what i have been told from my logistics sources, it's really a hot mess in terms of trying to get the containers in or out you have truckers that are not able to go into the port to drop off containers or pick up containers you have rails that are canceled, flights that are canceled the flow of freight, if you will, is really at a slow point here so it's very difficult >> any sense of how long these -- these port closures last what are we seeing in china before >> well, this is the third time this port has been partially shut down because of a zero-tolerance covid policy that china has instilled and they've closed three times in six months and this isn't first rodeo that logistics managers have gone into the chinese government has told one of my sources schickel which is a digital freight forwarder that they're looking at least 14

days for this partial closure and maersk is sending out alerts to the customers about the delays as well as the shutdown of warehouses, as well >> to what extent, lori ann, is this sort of zero tolerance that china's taking related to the upcoming olympics in a way that perhaps, as we get further into the year they might not repeat it and is this lockdown only because this -- this port shutdown only because of the zero tolerance on covid? >> china's had a zero tolerance platform as it relates to all thing, logistics and just in general since pretty much day one for covid. they have lockdown measures, as you know, in beijing, but to show you the severity, if you will, of the restraints you have a 2 00 vessel operators outside on quarantine because two pilots

tested positive for covid and for the truckers that are trying to get into these ports, they need to have two negative covid tests in order to get in so this is something that will continue and every logistics ceo that i've spoken with said until this zero tolerance is taken away with the chinese government, weal continue to have these hiccups in the supply chain. >> have u.s. companies, lori ann, figured out any work arounds now that this has been going on for so long and china has been so strict >> some of the work arounds are they're trying to move to other ports, but what happens is i spoke with john monroe of monroe consulting who actually works on the u.s. arm for the alibaba vessel called ship transfer. they're trying to avoid it and they're going north to another vessel like a small vessel port to then feed to another port

either shanghai or naibo from the water and that all takes time and then you have to reallocate appointments to get on additional ships. so that's all what they're doing and it's all just clogging the system >> a hot mess, as you say. lori ann larocco, thank you for joining us, keeping an eye on the chinese ports. we appreciate it mike, as we wrap up the show another strong day for the dow and that is just reflecting the strength that we saw in places like banks and industrials and energy companies which are at the top of the market and weakness in technology, and you wonder where this goes if we're going to keep seeing a jump in yields every day and the continued split in the market. >> a pretty key point for yields as we were showing before, very close to the upper range that we've been through for the year. we'll see if it has multi-day momentum behind it, but it is interesting that we were in a

place right before omicron hit, before it emerged where the cyclical sectors seemed as if they were going to start to take the fore again and it seemed like we were in for another one of these rotations to price in an economic reflation. that obviously was put on hold for a couple of months or a month and a half it's also running from the most popular big, marquee stocks that were really hot yesterday into apple and tesla that had less sponsorship. >> we'll see if this can separate this out from standard turn of the year reallocations, but right now it's at least implying a decent macro message. >> my goal is what the volatility index has been doing with put call rash wros. it's been probable pretty settled down and it's not too low, so to speak >> it never wn away, but it

twont an extreme, it moderated expectations, that it seems like people were not out of tlv skies with aggressive expectations and so far the market benefiting for that >> could it be the year of the dow outperform and it's done first two trading days of the year closing at a record close as the other two indices decline. we are out of time for "the closing bell." fast money starts now. >> it ramps up production of the f-150 lightning pickup we'll pick up how traders are breaking down the move peloton plunging 4%, and the stock on the verge of erasing all of the pandemic gains and we'll tell you what had investors unhooking from this trade and later a new stock from the new year and one of the traders is taking them out with a fast pitch why this retailer is set to soar we