their traditional services >> julia, thank you very much. we got a big interview with a man who knows something about sports, media rights former disney ceo michael eisner will be on coming up on the "closing bell." he'll talk about that and more kelly? >> he is one to talk to about all these issues thanks for watching "power lunch" today "closing bell" starts right now. ♪ thank you, kelly, and tyler. and for that promo welcome, everyone, to "closing bell." i'm sara eisen another up and down session here as investors try to make sense of today's big inflation report. the major averages are holding onto gains as we head into this final hour of trade. but off the highs. >> and i'm wilfred frost good afternoon to you. let's have a look at what is driving the action today the december consumer price index matched expectations, rising 7% year over year the biggest jump since 1982. meanwhile, the fed just released

its book of economic conditions saying growth in many district what's constrained by supply chain and labor issues more on that in a moment and tech is outperforming, building on gains for the week chips in the lead along with chinese internet stocks, microsoft and tesla. 59 minutes left in the session, sara >> coming up on the show, a few big names, imf managing director will join us to weigh in on the inflation situation. plus her latest thoughts on china's economy and crypto warnings we'll also talk to former disney ceo michael eisner >> but first of all let's get to the big stories we're watching today. mike, start us off, if you will, with the market action holding onto this week's bounceback as opposed to more pronounced in either direction >> very well mixed, really the action under the surface about half stocks up, half stocks down a lot of the extremes that built

up in the short term coming into today and yesterday have been relieved, some of the most oversold speculative stuff that got washed out early in the year has bounced, and then you have financials and energy that are kind of consolidating, treasury yields backing off a little bit. that places the s&p 500 in this trading range. again, keep pointing out 4700 and change where you topped out for almost two months in the latter part of last year bobbed above that. we'll see if that makes sense that it's just gathering up for another attempt at the old highs. yesterday we had kind of an early selloff. we had an upside effort that did pull back. so it seems like it's kind of a counter punching a lot of people think range trading makes a little bit of sense as we kind of sort out the macro factors in the fed take a look at commodities, very aggressive move, off the lows after covid. a lot of people are paying attention to what crude is doing. copper as high as it's been since october and really well above couple years ago

but i like the 10-year chart it shows you how high commodity prices were back in the early 2010s. and essentially also a reminder that commodity futures don't really compound over time. it's very much kind of aggressive moves take a look here at market-based inflation expectations obviously the hot cpi number this is the 10-year treasury break-even inflation rate derived from inflation protected securities so, look, we're up in the 2-6 area 2-5, i guess right now we're below the high that's significant compared to a couple of months ago we are above the prior range around 2, but we were also around 2.6 in early 2013 so it's not unheard of levels. more near term the 5-year inflation expectations that seem a little bit more elevated we'll kind of have to have the fed prove that it's getting things under control but this is a good, perhaps, reason, why the markets are undisturbed by that 7% cpi

number because we kind of built in some expectation into the markets, and it was not a big surprise the magnitude of today's number >> mike, interesting to see that oil prices strong today at 1.6%. yet energy stocks kind of pausing, showing that we might've just runup a little bit too quickly in some of those cyclical sectors so far early this year. >> and the very short term i think that's absolutely right, especially the parts of energy that are most leveraged to the exploration-type names they're not doing much today so that's a little bit of a cue that we've covered a lot of distance in a short period of time we talked last week at the end, banks and energy up nearly 10% in a week. it's going to take a little digestion after a move like that >> mike, thank you we will see you soon we'll turn now to the fed which just released its first beige book of the year, some good commentary there. ylan mui here with the highlights ylan >> sara, a slight downgrade in the fed's assessment for the economy for december the beige book now characterizes

growth as modest instead of modest to moderate now, the one exception was dallas which reported robust gains across industries in highly elevated price growth but around the country the fed said that business demand for materials and for inputs and for workers remained high. manufacturers in the boston district reported spikes up to 30%. now, lending activity across the country picked up slightly and consumer demand grew ahead of the rapid rise of the omicron variant. however, most districts saw a sharp pullback in leisure travel, hotel occupancy, and restaurants as those case numbers did start to rise. now, the fed reported employment was up modestly, but demand for workers was still strong, and there was robust wage growth across the country, especially for low-skilled workers. on inflation, the fed said that price growth was solid, but it decelerated a bit from the robust pace in the previous months many districts reported ongoing supply chain disruptions, and

cleveland reported that some businesses even turned away contracts because of a shortage of drivers and of equipment. but the fed said that overall transportation bottlenecks were starting to ease so, guys, maybe a light at the end of the tunnel. back to you. >> yeah. so i saw manufacturing slow down in cleveland, which was interesting because most of the other districts reported strength ylan, so you've read through the beige book taking that and monitoring the powell testimony this week overall, how would you sum up where the fed is and how the fed is thinking about this inflation fight, which is going to be the key question of the year >> yeah. i think the message from powell yesterday was that the economy is now reached a place where it doesn't need all the juice that the fed has been providing and i think this really showed why the fed is thinking along those lines. again, it shows the fed that the economy was able to sort of weather through some of the variants and some of the disruptions that we've seen in supply chains, that the real thing holding back growth is on the supply side, is that there

aren't enough workers, there aren't enough materials, there aren't enough inputs and that's what's perhaps constraining that activity that's what's perhaps saw that slight downgrade from moderate growth to underlying growth. >> ylan, thank you and, wilfred, before we put this subject to bed, i did want to point out one thing that is moving a lot in the markets that people are paying attention to, whistle the u.s. dollar. of course, that's the north star it's weakening so on a day where you're seeing a 7% inflation rise in a week where it's been all hand-ringing over the fed's next move, the dollar has been sort of quietly weakening here and i wonder if there's a bet there that inflation is peaking or that the fed might not be as aggressive as maybe some were thinking around the minutes. but the market is pricing in four rate hikes and starting to shrink the balance sheet but i think the weakening of the dollar is easing a lot of the pressure, higher cryptos, higher

stocks the dollar leads >> i mean, i totally agree with you, and i think it comes back to the chart mike showed us of those inflation expectations they're elevated at the moment compared to the last year or two. but they were a little bit higher a month or so ago and it comes back to what has been the most hawkish moment from the fed in terms of changing people's expectations is probably when those fed minutes came out as opposed to his testimony this week. will that inflation print today which was 7% for the first time in decades, albeit kind of just in line with expectations. >> yeah. well, we've got a lot to talk about. and coming up after the break, the global view on inflation imf managing director kristalina georgieva gives her reaction to those hot cpi numbers on inflation this morning and her outlook on china growth and much more you're watching "closing bell" on cnbc. the dow has just turned negative again, down about 40 points. it was up 200 at the highs we'll be right back. ♪

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markets. and so far the risk of spillover impact on other countries is being mitigated. it is, though, something we are concerned about, that action is especially important to do more to fight inflation in the united states could be a drag on the recovery here, but it can also transfer to other countries. what i want to stress, though, sara, because we tend to forget, the u.s. policy actions can be remarkable to recover from the worst crisis we have seen in our lifetimes. unemployment below 4%, gdp level almost at pre-pandemic levels. this is a remarkable achievement. and in that context, the really important job for policymakers

here, as it is for many others, is to balance the need to not throw cold water on the recovery but also not to allow inflation to speed up. our projections are that, starting second quarter, we will see inflation going down as the very big numbers from '21 are out of the calculation of inflation rates. this is subject to dealing with supply chain constraints and what we are seeing are some promising signs that some progress is being made in that regard >> well, it is a delicate dance for these central bankers, especially for the fed as you say, there's been so much stimulus injected. monetary stimulus, fiscal stimulus as that starts to go away and get withdrawn this year, how is the global economy going to handle it?

>> we already saw at the end of last year that the momentum of recovery has been somewhat slowed by both u.s. and china losing a little bit this impetus for growth and that is already reflected in the impact, these two big engines of the world economy have on the rest of the world. so we are going to come with our growth projections towards the end of the world -- of the month, and there would be some downgrades this being said, for '22, the impact of stimulus in the united states will continue to have a boosting role. >> i did want to follow up on china because you mentioned the slowing of the second largest economy in the world they've got this very strict

covid zero-tolerance policy where they shut down cities of millions of people on cases, which is still happening is that too detrimental to their economic growth and the growth of the world >> there are three things that are happening in china they're all significant. one, consumption hasn't picked up the way it should to compensate for the other disruptions in the economy two, policy support has been pulled out, perhaps a bit prematurely. and, three, we have the situation with very dramatic action to contain covid. and of course we've had the property market developments so all of this is holding the chinese economy back the positive side of the factors leading to bad situation is that

one of them is policy support for which china does have space. so, we need to see how they go about the -- as for the zero covid policy, we do believe that those that have adapted to function with covid still around us have a remarkable revival of their economies. and what are the factors that play a role? well, level of protection, level of vaccination, testing and other measures, and how effective is the shift from some restrictions to no restrictions back and forth so china, perhaps, should start to look into what other countries have achieved. you see how every wave of covid has lower impact on the economy than the one before.

>> do you think they'll get to their 5% target growth rate this year >> well, they certainly have the fiscal space to get there. we had our discussions with china on this topic and some recommendations around how they can boost the economy so they can get to 5%, not fall below. and let's see how and when they use this policy space. the people's bank of china actually did take some steps in that direction and i would expect that with the picture being what it is, there would be more to come. >> and finally i wanted to ask you about this new report that the imf put out on bitcoin and cryptocurrencies in general which we've seen sell off pretty sharply along with some of the higher-growth tech stocks and other more speculative parts of the market, as we've all focused on inflation and tighter monetary policy.

because these crypto markets have gotten so big, the question is, is there systemic risk if that trade continues to fall apart? >> we have been talking about regulation necessary for about table coins and crypto for quite some time. our philosophy is digital money is a one-way street. there will be more of it in more places just to give you one example, on central bank digital currencies, we surveyed our membership 110 countries are telling us that they're at different stages of exploring digital-backed currencies and, as you know, the bahamas was the first one to come. we have now china expounding nigeria and many others. so if it is a one-way street, we have to take it very seriously with regard to central bank digital currencies, the core

issue is interoperability. we don't want to be in a world of money when there are different feuds with their own functionality. but what it comes down to digital e-money, stable coins, crypto, then the issue is regulation they cannot be -- we cannot be in an expanding field with no rules. >> so the imf clearly has its work cut out for it. the managing director there saying they really are taking it on with a number of members interested in the whole digital currency space and that is helping build a framework so that these currencies can trade with each other and not necessarily compete with each other. we know china is far long, for instance, with the digital currency that was the takeaway. and the other big one for me, wilfred, is the warning on the global economy if the federal reserve does start to embark on tighter monetary policy and the ripple effects that could have

she says she's prepared for countries to come ask them for loans because it could get messy and ugly, but urges them to be careful not to kill off economic recovery as they fight inflation, which she thinks is coming down this year. >> yeah. but also thinks china still has enough levers to pull on the fiscal side to still make its target >> really specific recommendations there. >> despite a slow start, of course, the chinese shanghai index drastically underperforming u.s. indices over the last 12 months. if it does cement its gdp outlook in the coming months, maybe there's room for a bounce there. we will have to wait and see we've got just under 20 minutes, about 38 minutes left of the session we are a little bit low in the dow by four points, having been up by 200 points at the high of the session. coming up, former disney ceo michael eisner making news with his top trading cards to

fanatics and we'll talk about keeping up with the explosive demand for covid tests with the ceo of labcorp. we'll be right back here on the "closing bell. don't go anywhere. what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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airlines ceo inside the company's latest results, travel trends, staffing and covid challenges will investors get on board? a cnbc exclusive tomorrow. watch "squawk box" any time on demand welcome back it is time for a cnbc news update with rahel solomon. hi, rahel. >> hi, wolf. here's what's happening at this hour the state department says that it sees no evidence that russia is de-escalating tensions on its border with ukraine. there are some indications that the situation is worsening price says that no one should be surprised if russia incstigates ethan crumbley has pleaded not guilty to terrorism charges. he faces two dozen charges for allegedly opening fire with his handgun and killing four people and injuring seven others.

and more calls for the resignation of british prime minister boris johnson from his own party. earlier today johnson apologized for attending a garden party with other government leaders during britain's first pandemic lockdown however, he did stop short of admitting wrongdoing you are now up to date sara, i'll send it back to you >> not a good look rahel, thank you after the break, a rare interview with the former disney ceo michael eisner on his new tops deal with fanatics. and why the movie theater business could make a big comeback and as we head to break, a check for you on bonds yields are pulling back again today. the 10-year down to 173 or so. it reached 180 went past there at the highs of the week it's come down even with the very strong inflation rate a lot of people say that was already priced in and could be the market signaling we're at a

peak either way, there's buying of treasuries, yields lower, tech outperforming. we'll be right back. at fidelity, your dedicated advisor 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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welcome back fanatics recently acquiring top sports cards and entertainment business in a deal worth $500 million the deal follows top scrapping plans to go public via spac last year after fanatics won the licensing rights to make major league baseball cards. topps remain in candy and gift card business owned by former disney ceo michael eisner's

company will be renamed the bazooka company, and it's not going to fanatics. michael eisner joins us now for more in a first on cnbc interview. great to see you, michael. thanks so much for joining us. >> thank you nice to be here. >> so much to get to you with including the broader media landscape. but got to hit the fanatics deal first of all and getting 500 million for this part of the topps business do you see that as a massive win or a kind of decent escape, all things considered? >> somewhere in between there i think it's a really good deal for us and a good deal for fanatics it's more than 500 million we sold it for 3.5 times what we paid for it. we still own half the company. i think putting this great brand in the hands of michael reuben and fanatics is a wise choice. they have 80 million fans connected to them. they know a lot about those

fans i'm moving on to things where i can own the ip, not licensing it we have a great partner, a private equity partner usually private equity's in a deal for seven years, they've been in it for 14 years. so we ran it for 14 years. we took it from the creators, we grew it tremendously and we're now placing it in hands that can improve it, build it, make it even more synonymous with sports cards and the like it saves the company, i think, and i think fanatics did an excellent job in getting licenses from the big three sports networks, you know, the nfl and nba and major league baseball so it puts me back where i haven't left anyway, into products that i own, i don't

have to license, i don't have to go around the world and beg for a license from the premier league or from the world cup or from major league baseball it's really one of those deals that's good for everybody. >> and we want to get on to all of those things that you're now focusing on, michael, and your views more broadly on the media landscape. but it is such a fascinating deal the fanatics ceo was on our air recently talking about how it came about, particularly that price negotiation. let's just quickly take a listen to reuben. >> i'll tell you that when michael eisner and mbp reached out to us, they said, look, we want topps to continue, we want this to be great for our employees, we think this could be a foundational thing. and we very quickly got to an arrangement that makes sense to everybody. they have not only the candy

business but the gift card business as well i think we paid a price that they were happy with it really worked for everybody to allow us to start four years early. so i think this really was a win/win deal for everybody >> two quick follow-up questions, michael were you fearful when you approached him as he sat there and didn't know that you ultimately had to sell to the company that sees the mlb contract from you in the first place? >> well, it was -- you could make a movie just of the whole process. we were one day from getting approval to go public. michael rubin made a deal for 20 years going to 2045 because we had five more years of baseball. i couldn't believe that an ip company would do something for 20 years at disney we never did anything for more than licensing for one or two years if you do it for more than one or two or three years, after a while, maybe the creativity goes away, maybe the marketing goes

away i can't think that'll happen with fanatics. so, we were surprised, i don't want to say -- let me just say we were surprised. we were led to believe that this may not happen from the union and for major league baseball. but it was a surprise, it was a shock. it changed our minds about going public and we had to reconsider what we were going to do i think economically we did just as well considering that we still have bazooka candy brands and we still have the gift cards, and they have the topps brand. i think we're fine and i have a lot of television shows on the air not part of this deal. we own a soccer team in england. i like ownership, i don't like to have to license so i'm happy about it. and during the pandemic, not to have to travel around the world negotiating with leagues everywhere is kind of a relief so, to me, and i think for madison dearborn and certainly

for michael rubin, this was a deal, if you can believe it, was good for everybody you like to find a winner or a loser, you like to find the black hat and the white hat, i don't think there is one in this case i have many deals where there is a white hat and a black hat but not this one >> i don't know, it doesn't sound like you're fully happy about it, mikel. and you can't be you said you were surprised by the fact that they swooped in while you were about to go public and take the mlb licensing rights that would to have taken a good chunk of value off of topps when you eventually made that sale. >> i don't like disagreeing with somebody that interviews me, but i am fully happy about it. my wife is even happier about it than i am. was i happy to find out that we lost the rights to major league baseball in five years no did i want to shoot myself no business is about recovering from disappointment. you never do well in business unless you have failure. failure creates the ability to

be creative and innovation and do new and better things so, i've had conversations with michael rubin who has been excellent in that all of our management in topps goes to fanatics in that fanatics' card business will not be called fanatics, it will be called topps. i feel like i protected a brand the way i protected the disney brand, the abc brand, the paramount brand. i'm ready to move on and protect the tornanti brand, which is the name of the company that does bo jack horseman and other things that we're doing and a lot of things we're doing outside of this deal. our soccer team, as i said, it's fun for the family we're all rooting for the same team every week it's either elation on saturday or depression. so i'm up and down >> fair. i'm curious, though, the last one on this, where you think

this business is going because trading cards -- they've had such a boom in recent years, and i know you had big plans for topps like mlb nfts. how much growth do you see going forward for the combined company? >> well, i like the idea of the public company, although i was in a public company all my life, and i also like the idea of not a public company but it was kind of time for a public company yes, we sold at the high it is unbelievable what has happened during the pandemic and even growing into the pandemic, we are doing better than anybody thought you would ever do. so if you're at harvard business school, will they tell you to sell at the high yeah but i sold disney at the high -- excuse me, i didn't sell disney at the high. i retired at the high, and it only went higher so, sometimes you sell the high, sometimes the high is not the high who knows. we got out at a time that was

fine we keep bazooka, we keep the gift cards, they're growth businesses, and we move on >> i want to touch on your views more broadly, michael, of course, on the media industry and landscape. and one question that i think kind of captures that is whether you think netflix should move into live television and live sports or whether disney should consider exiting it, espn, of course, often spoke again about as something that perhaps they could look to exit what are your views on that area at the moment? >> i think neither, in all those cases that you just mentioned if i understood them correctly. look, i was one of the first investors in netflix we were the first company to have an animated show in netflix. netflix told me they were never going in animation, then they went into animation. they were never going into sports, they're going into sports they weren't going to make motion pictures. apple wasn't going to make

motion pictures. steve jobs told me he was never going to do content. all of that has changed and for the better so, i believe that the streaming business is here to stay i think netflix is here to stay, disney plus is here to stay, amazon is here to stay, hbo max is here to stay. that doesn't mean that radio, fm radio, motion picture theaters, motion pictures outside the home are going away >> i wanted to ask you about bop chapek because i believe you hired him, you know him. we've seen this sort of long, drawn out transition from the eiger era to chapek. what do you think we can expect? >> well, i'm a big fan of disney i am a fan of both bobs.

yes, i hired him is he the same exact executive as i am or bob is or anybody is? he is his own guy. he was very good at disney when i was there. he took a home video business from a rental business to a -- business that was very risky. he did a very good job in the parks. look, i'm a shareholder. i think he's going to do very well bob did extremely well we did okay. i wouldn't discount disney disney went through last year this pandemic, that are does change a lot of things and i wouldn't throw away your disney tickets to the theme parks quite so early >> do you have any advice, michael, for bob eiger is it a hard role to move on from >> we've talked about it having

50 unanswered emails and seven scripts you haven't read and 30 phone calls you haven't returned getting off that treadmill is not a horrible thing i think he is interested in writing another book, looking at his opportunities. he's not 25 years old, as i'm not. between abc and disney, he spent many years in one institution. i think he's coming up for air, and you'll hear about him and things he'll be doing and his wife willow will be doing in the future again, i know it's odd to say that there's no loser here i don't think the shareholders are losers here, i don't think the consumers are losers here, and i certainly don't think either the man you've talked about are losers here. >> and finally, michael, i just

wanted to ask you about some news that cnbc has learned related to the mlb, just recently, that apple is in talks with the mlb to stream the weekday package. so, amazon and the nfl, apple potentially getting in here with the mlb. what do you think of these mega cap tech giants getting into the sports rights game what does that do for valuations and for viewership >> well, never say never in any of these things. they all protested that they were going to stick to their knitting and they're all moving into an area that is a great necessity to be in they have to compete i think apple is making a smart move it's great for the leagues, more buyers and all of that this idea, however, of cocooning faith popcorn who wrote that book about cocooning in the '80s and everybody was going to be at home and watching their big screen televisions and never

going out and never going to sports venues or theme parks, frankly, was ridiculous then and it's still ridiculous now. yes, it is good for apple to bring sports into their world, but young people and older people want to still go to games when they can safely outside of the house, go to movies. a young kid does not want to watch a movie in the apartment where his parents are sitting. they really want to get out. they want to go to sporting events so the world is made up of the so-called cocooning, apple showing major league baseball and the people who are watching it also going outside of the house. that is going to happen. and i believe strongly that the movie theaters will come back, "spider-man" has showed us that they will. it used to be that movies with

dialogue written on them, sub titles only worked at the paris theater in new york and a theater in chicago and a theater in l.a now on these streaming services, foreign movies, the world is flat, is working look at squid. look at all these movies, the french movies, the spanish movies, falco, frada, whatever it's called. >> loved it. >> you know, the world is different for a lot of reasons and then the metaverse and web 3.0 comes in, and the world is moving forward >> that's another conversation for another day. michael eisner, thank you so much for joining us. >> thank you for having me >> always good to have you still to come on the show, the ceo of labcorp will join us to talk about the ramp-up of

at-home covid testing. that exclusive interview is still coming your way on "closing bell. we've got 15 minutes left of trade. the nasdaq the clear e tperformer today ths&p up about a third of a percent. keep dreaming. [music: “you can get it if you really want” by jimmy cliff]

up next, chinese stocks rally and paypal falls on a downgrade. those stories and much more when we go inside the "market zone," next

tonight, a rare bright spot on the covid surge the new data just out. plus, the british prime minister admits to breaking lockdown rules lockdown rules could it cost him

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no account minimums. ♪ eight minutes left in the trading day. we are now in the closing bell "market zone." cnbc senior markets commentator mike santoli is here to break down these crucial moments of the trading day. and today we've got ritholtz management ceo josh brown. stocks are trimming their early gains, though we are still higher to finish out the session. the dow has gone back into positive territory russell 2000 underperforming it's the third day in the row where the nasdaq is jumping higher than the rest of the market is it all clear for tech stocks after that very turbulent start to the year? >> i think it's a pendulum swing. they were the big victims in the first week of the year microsoft came in to today, 10% off its high when the overall market so i think that's the dynamic here slightly defensive kind of, i would say, low conviction trading today. but the s&p is up 3% from the

midday low on monday so, that's not terrible even if we are at the top of this old range. >> josh, have you been impressed by the way the market has stabilized and taken in stride all these rising rates >> no. i think we're going lower. i think there's more work to do. you're going to see a lot of these technology snapbacks peter out, and then they will be printing a lower high as a result so, i wouldn't get too excited it's a lot of lackluster enthusiasm i want to point out in particular small caps. the iwm is absolute garbage over the last year, up 5% versus 28% for the s&p. but meanwhile, volatility has been off the charts. rolling 30-day volatility in the iwm over the last 12 months has been about 26% that's what we call rewardless risk and that is, i think, something that is infecting stocks in many, many sectors, many formerly popular trades are

getting caught up in that. and it's very, very tough, i think, for the overall market to re-establish that uptrend so long as that's going on. so, take these opportunities where you see this kind of strength and these bouncebacks if you're unhappy with any of you're holdings and they're green and you want to make changes, that's what i would do here >> that sounds like quite a big shift in your sentiment. is that -- compared to two or three weeks ago you're notably more cautious? >> i'm not cautious at all i'm a bull, i'm a buyer. i'm just telling you i'm not looking for new highs this week. i don't think that we're set up for that i don't think the underlying strength is there. and i welcome lower prices i'm not rooting for all-time highs. so it's not caution, it's being realistic about what the tape looks like, and i try to bring that to the viewers. right now this bounce does not look like it's the bounce.

>> interesting chinese tech stocks outperforming the broader market today led by didi and barbov >> so, wolf, let's have a look at some of those names chinese tech stocks are moving higher in today's trade. we'll start with baba, which is moving higher, up about 15% this month, still 50% off its high and negative over the past 12 months didi up about 10% this week on track for its first weekly gain in a month the etf track in this sector up 15% in the past week but still down about 60% from its high last february. investors have been chasing this group higher, shorting china tech, he says, has been a popular trade. back to you all. >> josh, thanks for that one meanwhile, jeffrey is downgrading paypal to hold including a lack of catalysts going forward and limited potential for pe expansion

the stock down 2% today. josh, you're a holder. what's your view on this note, and have you been tempted to take profits or sticking with it >> you know, i read the note and i agree with almost everything that he's saying as far as the challenges facing this company the average transaction size is coming down. there's a very tight correlation between paypal's average transaction and that of visa/mastercard. they tend to line up really well, and we have data from those other companies so we know that that's a headwind we also know that with the re-opening there's just less e-commerce as a percentage of the overall mix and paypal's not as big in person, although they're trying to be with qr codes. so i agree with what he's saying the thing is the stock has already been cut in half so how much of that, how much of those headwinds are already appreciated by the investors in this that imand already priced in and maybe that's where i disagree with jeffreys

i think a lot of that is in this stock when you look at how rapidly it came down from 320 to 180. >> it is the biggest point drag right now on the triple qqqs we've got just about two minutes to go here, mike, in the trading day. what are you seeing in the market internals looks like a pretty broad rally. only healthcare is the sector that's lower >> slightly net positive across the board. nasdaq is basically 50/50. but the new york stock exchange almost two to one positive to negative, and equal-weighted s&p's about flat it's sort of a push of a day in terms of kind of staying in this range. i think we're it a market where there are strong opinions weekly held you can be in an inflation bowl and a growth bowl at the same time that to me is kind of why we're seeing a little bit of indecisive action just in the short term take a look at some of the broker-dealer stocks down today. the etf, the track stack group is off 1.5% relative to

traditional banks that are slightly green disappointing earnings, trading was tough last year. morgan stanley, goldman sachs seemingly down in sympathy with that and the volatility index, that's kind of more or less normalized. we were down below 18 earlier today, still down there. we've had higher highs here. it's been tough to get back down to the fall lows and even before that around june but this seems like it's kind of staying out of the way and often when a market is very mixed, a lot of offsetting currents, the index seems trapped and not moving that much and that's what the vix is telling us >> so we've got just about a minute to go here before the close. the dow is up 37.5 points or so. it's up about 200 at the highs but was negative a few times during the session s&p 500 higher by about a quarter of 1%. materials are the leading sector for change technology's doing well. consumer discretionary as well nasdaq outperforms again, having its third day in a row of gains. all of that might be surprising after we got a cpi report

showing 7% inflation the highest we've seen in this country in decades but that was pretty much what was expected could be a sign of the top who knows. we've seen high inflation. market taking it very well, low. lower treasury yields, weaker dollar, higher cryptos, and overall stronger stocks except for the russell with the dow closing up about 22 points and the nasdaq up 0.2% it is being led today by tesla wilfred? ♪ >> welcome to "closing bell," everyone i'm wilfred frost, along with sara eisen and mike santoli, cnbc's senior markets commentator. financials have been on fire to start the year coming up analyst mike mayo, why investors should continue betting on the banks josh brown from ritholtz management is still with us. let's get to some breaking news on coinbase, which kate rooney has for us kate >> reporter: hey, wolf yes, some news here from coinbase, the crypto company

acquiring fairx, this is a chicago-based derivatives exchange it's regulated by the cftc coinbase right now does not offer derivatives. the deal will help coinbet into things like options and futures, both in the institutional and the retail side of that business i spoke to coinbase executives about this deal. the head of coinbase institutional says that they saw strong customer demand for this and says coinbase intends to play a leading role on that side of the crypto market even though that is still in the nascent stages this is a competitive move as well right now crypto derivatives are really dominated by some of the big global exchanges. you got binance, which is by far the biggest one there. ftx as well. and it comes as we see bitcoin leveraged at an all-time high this week. lately there's been a lot more interest from traders betting on the direction of bitcoin versus

buying bitcoin itself. >> josh, goodone to put to you on this. does this kind of put coinbase in a more competitive position >> i think the importance of this should not be understated coinbase is buying a company that is under the direct supervision of serious securities and commodities regulators they increasingly are demonstrating their ability to navigate that fine line between the murkiness of crypto regulation and having as many lawyers as they have engineers and being able to play the game with the big boys as wall street increasingly moves into this digital environment. so, i'm notin coinbase the stock currently. i am bullish on adoption of digital assets this year i think coinbase will do very well as that happens because they're building themselves up to be this supermarket of different services within crypto, and now derivatives of

crypto so, ultimately, there are going to be a handful of these kind of super apps that can do it all. and these guys seem to be very serious about being one of them. >> so, why did you get out of the stock, josh? i mean, recently you were pitching it on this show >> i bought it for a trade i got stocked out. >> ah, well, it's been a rough ride with bitcoin for the year so far and coinbase has followed. major averages, though, let's get back to the broader market, finishing the session higher after a pretty volatile start to the year. joining us now to discuss where to put your money amid all the volatility, ceo of thornberg investment management. he has $49 billion in assets under management jason, what is your allocation right now to stocks given this bumpy ride we've been on >> sure. actually, i think there's a lot of quality stocks out there not just in the u.s. but globally, which are underowned

so if you look at obviously the driver in 2021 was companies that weren't increasing their earnings, companies that increased their earnings actually underperformed. there's a lot of opportunity out there in a number of different sectors. one would be financials, which you mentioned earlier. >> you don't think they've already seen such a hot start to the year "fast money" yesterday said they always sell off afterwards because the expectations are so high that's obviously a short-term trade idea but what do you make of the fact that they've already had such strong performance this year >> sure. so i think that's a sector, whether it's banks like jp morgan or exchanges like cme obviously a maybe less digital analog to coinbase as you were talking about earlier. those are both names that benefit from rising rates. frankly what we're seeing a lot of investors' portfolios and a lot of clients is names that are being hurt by rising rates

so if you can have a balanced portfolio and take the other side of that, there's huge benefit to a lot of investors in those kinds of names >> mike, just pivoting back to today's action and looking at where we ended up, obviously higher for the three major averages, as josh already pointed out, the russell, though,didn't perform. ark funds rolled over in terms of their recent bounceback, kind of sooner than the rest of the market >> yeah. i mean, that was part of the group that i said, you know, some of the pressure was relieved because of these extreme moves over the prior two days, a lot of the stocks in the ark portfolios are up 10%. so violent bounces come in bearish patterns and that's kind of the story right there. small caps were telling a similar story, small cap growth in general was not really where it was at today. the top two contributors to the upside in the s&p were tesla and microsoft by a lot so, this was not the day for ark to make any headway, certainly kind of guilty until proven

innocent on those types of stocks right now >> josh, how are you reading that small cap underperformance? because in one sense a lot of people think this is the year for value investors and cyclical investors. and if that's the case, shouldn't small caps be doing better >> not necessarily, sara i understand what you're saying because when you look at the makeup of the small cap index, you tend to have a lot of the companies be in the sectors that seem to be in favor this year, right? like industrials and certainly financials and some energy but it's not enough. what's really going on here is that everybody is super leveraged. a lot of people are caught off with what seems to be working right now. every manager has gotten the memo, it's about the old economy, it's about quality, it's about cash flows. that's what everybody wants to show that they're in and they got right, and that process of shedding things in order to

reconfigure a portfolio is ugly. like as it's happening, it's gross. so, these things, in many cases, are all one trade. and you talk about leverage. bitcoin is acting just like the ark names, the ark names are acting just like small cap growth they all look terrible and they do have these violent one or two-day rallies and they resolve to the down side because there are still more people who need to shed more of that stuff to feel better so, i don't know what decouples that and what makes that a thing of the past. but that is very much the way things are in the present. everybody i had talked to seems to understand that that's what's going on and it could get worse, which is why i was talking about in the last segment, i think we have more work to do. there is more puking that has to take place in a lot of areas of this market. it's not over. >> jason, international equities looking less vulnerable? >> look, i think there are

similar dynamics that you just discussed are less present in international equities you do have cash flow generation, valuations are less extreme. it's less dependent on sort of a tech sector particularly a low profit or no-profit tech sector. there are those elements to those markets that are valuable. i also think that they're underowned and so from a sentiment or shift perspective, there's a lot of value there for investors. >> jace jason brady, thanks so much for joining us. josh, we want to get your zone-in stock pick what are you going for >> this is very consensus. it's another financial i started buying shares of the carlisle group recently. i have a small position but i'm trying to add to it. cg is the ticker i think that there is a possibility that this becomes an s&p 500 component this year. it's about a $20 billion market cap.

it's smaller than blackstone and it's smaller than kkr, both of which are huge winners also over the last year. but it doesn't have that dual share class. and we know the s&p index committee doesn't like the dual share class. so i think carlyle might be the name they want to add. there's not one private equity firm in the s&p 500. that's a huge oversight considering how large this industry hasgotten i don't think they want to repeat what they did with tesla and let something become a trillion-dollar company before they add it. so, carlyle is as good as it gets in terms of quality the founders only own 30%. there's a lot of ownership, institutional ownership coming into the stock it's a corporation, it's one share class. it's not a weird structure, there's no k1s and they are set up to do really well they've just raised a ton of money, and i think a lot of investors at every level are very interested in alternatives right now. >> but there's the pitch for

carlyle to join the s&p, and it's $18 billion to your point, not a tesla. thank you, sir, always good to see you. >> all right talk to you guys soon. we are just getting started here talk to you soon on the second hour of "closing bell." up next on the show mike mayo thinks investors should stay aboard the bank train as those stocks continue to outperform. we'll talk about the names he likes most, straight ahead and later the ceo of labcorp on the white house requiring insurance companies to cover the cost of at-home rapid covid tests,ow h it affects his business we're back in just two minutes

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stronger capital market performance. did that spook you ahead of earnings >> look, bank stocks outperformed last year we expect bank stocks to outperform in 2022 and the theme of the year is main street banking or traditional banking revenues over the next couple years should see the best growth since the 1980s. so go ahead and get your pack man out and get your mtv and get your old neon pink t-shirt because we're going back to 1980s in terms of the degree of growth in mainstreet banking revenues that's what's going to drive this year, and that will supersede a decline in capital market revenue that's already in our numbers. >> i guess your numbers, which you already factored in the outlook for the year, already has seen share price targets

come quite close because of a strong start to the year for this sector as a whole much lessupside than as recent as a month ago >> well, the stocks are moving on the expectations that interest rates might be a lot higher than we modelled. i know we've only modelled on our bank team two rate hikes this year. andyou heard jamie dimon just couple days ago saying it could be four rate hike if that happens. then there's certainly a lot more upside. but what you're seeing here is you have record-dry powder i mean, cash or cash-like instruments equal almost one-fifth of bank balance sheets you also have the return of loan growth the fourth quarter saw the best loan growth in over five years, and you layer on top of that higher interest rates. and for all the talk about fintech or bintech or big retail or other nonbanks taking market share away from banks, guess

what, you're about to see traditional banking revenues grow at the traditional banks probably more than expected. but the other part of that is it's not just the top line, it's the bottom line because the tech revolution at banks is resulting in better incremental profit margins on those new revenues. so you're finally going to see the benefits of all those technology efforts for the past decade >> so you like the overall sector clearly, mike within that is thestrategy for choosing the winners as simple as the banks that benefit most from those higher interest rates? or is that just too easy and it's already been priced in? >> i never want to hang my hat simply on a rate outlook that's certainly one component but we featured our top four picks for the year, i listed three regional banks that are also self-help stories so that's u.s. bank corp, that's truist, that's pnc they all had mergers that give

an extra boost on top of the interest rates, on top of that loan growth. our number one pick remains bank of america, which does benefit more than others from higher interest rates, but also they gathered a level of deposits over the past one to two years equal to the six largest banks they've frontloaded all those costs to gather all those deposits and now they can finally deploy some of those deposits to securities and loans, so the benefits are backended. >> mike, what's your take on citi's decision to exit the mexico consumer business >> wolf, i think i've been on your show. and, as you know, over the last decade i've gone to multiple annual meetings asking not only the ceo but the board of directors of citigroup why don't you sell mexico. i would say better late than never. it's the right move. it's a bold move by the new ceo. she used to run latin america so she oversaw this business that she's now selling.

and i like the framework that it's not enough for a business to simply be differentiated. it also has to have synergies with the rest of the firm. so we think this is one type of move that should help them gain more credibility in eventually generating double-digit returns. if they can do that, citigroup could potentially double over three or so years. but it's up to citigroup to provide a credible plan, it all comes down to 49 days from now at their investor day march 2nd. but, in addition to providing a credible plan, taking more actions not only for the environment and they're ahead of the game on climate day one jane frazier announced they are going to be net zero carbon by 2050, and not only for equity and society but also for the shareholders so when it comes to pay, they finally listened when it comes to selling mexico. i would like them to listen with regard to the new bonus payments

that are out there, which i don't understand, but at least make those bonus payments in stock and not cash >> mike mayo, good to see you, as always. we look forward to earnings, coming on friday and onwards the home builders have already started. we've got an earnings alert right now on kb home diana olick with those numbers >> reporter: this is the first builder to report. we have mixed results here e of eps came in at different shares. $1.68 billion versus estimates of $1.708 billion. they are still being hit with supply chain and labor issues. the ceo said they significantly expanded production to meet healthy demand but operating conditions were extremely challenging. again, supply chain and this quarter ended at the end of november so it wasn't even when omicron hit at that point.

this is pre-omicron. interesting on prices, though. $451,000 was the average selling price. that's up 9% year over year. and in their guidance they say for 2022 guidance on home's 480,000 to 490,000 prices just continuing to soar in the new home market as demand continues to increase. and, again, their backlog value up 67% with deliveries up 28%. no falloff in that buyer demand. guys, back to you. >> thank you so much for that. up 2% now in afterhours trade. up next, the ceo on labcorp on whether his company is able to meet the soaring demand for covid tests. and evercore's mark mahaney talks about doordash

the nation's earnings score card covid's impact on consumer spending, demand, and the bottom line protecting your investments, funding new potential.

team coverage and analysis all day. watch or listen live on the cnbc app. the rise and fall of elizabeth holmes >> she was the next bill gates or the next steve jobs but of healthcare >> the true legacy of silicon valley is to build great products that can make a difference in the world. >> or a brazen fraud >> holmes says she's the victim. >> with reckless disregard for human life >> i knew she was putting patients' lives in jeopardy. >> all new "american greed" tonight 10:00 eastern on cnbc. the white house announcing a new covid-19 testing adviser dr. tom inglesby, the former director of the johns hopkins center this comes as the biden administration is trying to ramp up its testing initiatives to keep schools open, doubling testing capacity in schools to 10 million tests per month labcorp was the first company to get fda approval for its at-home

test and ceo adam schechter joins us now for an exclusive interview it's great to have you back on, adam i just went to walgreens.com to buy a pixel. they're out of stock, at least for shipping so, how are we doing with this testing shortage >> hi, sara, hi, wolf. it's nice to be back we've done 65 million tests since the beginning of the pandemic if you look right now, we're going anywhere from 125,000 to 175,000 per day. and the good news is that we're able to turn those tests around on average within two days if you look at pixel, there will be more to order for sure. what we try to do is make them available throughout the day and then we make sure that we can actually have them shipped in time so that we get them the next day it is a very important testing capability that we have, and it represents around 5 to 10% of the total tests that we do i've been doing pixel ordering it at home for a while now in what seems like over a year.

so how is the white house doing? have you had any interactions with this new testing when it comes to better pricing and better availability of tests which we so desperately need >> yeah. so we've had discussions with the white house. and those discussions are very positive, they're very good. what we're trying to do is make sure that we have the capacity available for the types of tests that we run. we run tests that are in central laboratories, the pcr tests are considered still the gold standard right now we're running 125 to 175,000 per day, but we can do more if we need to the other thing that we do is we provide our tests with no up-front out-of-pocket costs for any of the patients. if you go to your physician or urgent care we provide them with no out-of-pocket costs >> adam, in terms of your outlook for sales of covid tests in the year ahead, do you expect it to fall dramatically compared to last year

>> yeah, i would expect that sales will go down this year versus last year but, to be honest with you, i expected 2021 to be down even further than it was. it's still so hard to predict exactly what's going to happen during the pandemic. back in june of last year, people said, well, you're not doing that many tests, are you going to keep your lab open, are you going to keep the capacity where it is? we did that and i was really glad we did because when we needed that capacity in november, december, and is now we have it that's why our turnaround time remains under two days we'll be prepared for whatever scenario comes forward >> what about the white house policy, the biden policy of requiring health insurers to pick up the costs of the test? you said it's free of providers. but if you're buying it at the store, theoretically if you have private insurance, they should pick up the bill is that going to be effective? are they going to pay you

directly and do you think that white house has authority to do that >> well, i think we have to do everything we can to make the tests as readily available to everybody that needs to be tested and we do need significant numbers of tests, particularly if you think about the rapid antigen. encourage people to get the tests when they need them. i think we have to do that i think industry working together with public and private relationships and with the white house to do everything we can to help the country and frankly the world through the pandemic >> adam, what are your hopes, more specifically, for other medical demand to pick up if omicron does subside, and how that will play out in terms of your earnings and revenues, which areas in particular? >> yeah. so if you look at our base business, it continues to perform pretty well. at labcorp we run tests for cancer, for alzheimer's disease, for diabetes, for cholesterol, almost every type of test that you can imagine.

the level of testing today is almost the same as it was prior to the pandemic. we're going to continue to make those tests available. at the same time a big part of our business is in drug development and running clinical trials and if you look at clinical trials, there are many ongoing right now outside of covid so we're going to continue that momentum and we're going to provide our earnings guidance for 2021, for 2022, and we're going to give a longer-term outlook on february 10th i look forward to providing that because i'm optimistic about our growth opportunities before us >> adam, thanks for joining us good to see you. >> nice to see you both, too evercore upgrading doordash thutrfm. e analyst behind that call joins us to break it down.

tonight, a rare bright spot on the covid surge the new data just out. plus, the british prime minister admits to breaking lockdown rules could it cost him his job? >> the facts, the truth, "the e, the more questions we have. the biggest question now, what's next? what will covid bring in six months, a year? if you're feeling anxious about the future, you're not alone. calhope offers free covid-19 emotional support. call 833-317-4673, or live chat at calhope.org today.

breaking news on the federal reserve. let's get to ylan mui in washington ylan >> reporter: federal reserve governor lael brainard will tell lawmakers tomorrow that tamping down inflation while sustaining the recovery is the fed's most important task in prepared testimony for her confirmation hearing as vice chair of the central bank, she noted the human toll of inflation. she said, inflation is too high and working people around the

country are concerned about how far their paychecks will go. she said the fed's priority should be to protect the gains they've made and support a full recovery now, brainard is likely to see some opposition to her confirmation from republicans especially over her commitment to fighting inflation, her stance on climate change, and support for a central bank digital occurrencech in her testimony, brainard highlighted her bipartisan resume she's worked for five presidents of both parties. and she's been involved in the u.s. response to every major financial crisis of the past three decades. guys >> so, do you think she'll have any trouble getting through, ylan i guess they'll point to her as the only obama appointee left on the fed. and there's broad support of powell so if they want to put inflation on someone, they could pin it on her, i guess >> yeah. i don't think she'll have a problem actually getting confirmed. but i don't think the margins will be quite as robust as they are for powell she was confirmed originally, i

believe, at a 61-31 vote so already there were more republicans who were not in favor of her appointment and of her confirmation so she is still likely to make it through, but i think it'll be a testier hearing tomorrow than what we heard from powell. >> ylan mui, thank you time now for a cnbc news update with shep smith hi, shep >> hi, sara. from "the news" on cnbc, here's what's happening now president biden on capitol hill today to honor his longtime senate colleague and former majority leader harry reid senator reid died last month from pancreatic cancer he was 82. that service closed to the public because of covid protocols. senator reid is but the 15th senator to lie in state at the capitol. his coffin placed on the same platform used by abraham lincoln. britain's prince andrew must face a lawsuit brought by a woman who says he sexually abused her when she was 17 that's the ruling from a judge in new york today. the court rejected claims by

prince andrew's lawyers that the suit should be thrown out. they cite a settlement that accuser virginia giuffre reached with epstein she claims he set up sexual encounters with the prince up to $50,000 in enlistment bonus for joining the u.s. army. it's the largest bonus ever offered. the army reports the pandemic, competitive job market are both posing big challenges for recruiters that bonus available to highly skilled recruits who sign on for a six-year active duty enlistlent tonight, the fallout from boris johnson's garden party at the gate calls for his resignation grow "closing bell's" wilfred frost will break it down for us on "the news" right after jim cramer you know, he apologized but he didn't really admit to breaking the rules. >> exactly some framed that apology as more suggesting he's sorry he got caught than sorry for the act

itself and that's why there's still a lot up in the air. shep, i'm looking forward to joining you. 7:30 is right up against my bedtime. but nonetheless, i look forward to that. >> you live on that british time, i know [ laughter ] delivery company doordash has seen a sharp pullback from its peak in early november but today evercore isi upgraded the stock to outperform, saying it's the only online food delivery player expected to be profitable in 2022 joining us now head of internet research at evercore isi, mark mahaney. thanks for joining us. really interesting and looking through the kind of four key reasons that you've upgraded it. the first one suggesting it's close to a trough multiple i guess my question on that is relative to what >> yeah. so, the market hasn't taken too kindly to our upgrade this morning so we'll see if we got it right or not. but we try to be patient this is an asset that we tracked

since pre-ipo. it has traded over ten times so versus its own limited trading history, it's at a trough at least we felt like take at least 40% of the hype out of the stock, that's how much it's corrected from its peak that at least gives us a safer shot at it >> and in terms of some of the other factors, the other one that stood out to me is the way you are quite excited that it can expand >> yeah. so this is an asset since the beginning that was almost entirely a restaurant food delivery company what we wanted to see is fundamentals analysts, i wanted to see international expansion, and i want to see diversification of the business away from just restaurant delivery to food, this morning it was announced that they will be powering square's delivery business so that's actually now become a reasonably large part of the business we think about 20% of doordash users use doordash for delivery of nonrestaurant items, nonfood

restaurant delivery, whether that's 7-eleven. they power the 7-now app anything that diversifies the business model allows it to flow it's better for profit and growth we've seen this diversification, we thinks a positive >> i'm curious who else you like as we kick into high gear here on corporate results with the setup for tech looking pretty different. >> yeah, sara. we put out our quarterly preview this morning we're seeing unfortunately a lot of these negative inflexion points in mobility we just tracked the google mobility index, it's a free tool, it's a wonderfully detailed tool. but you can see that since about december 20th or 21st, there's a lot of mobility that's negatively inflected that's bad for the ridesharing business and it's not good for travel names, especially for booking so we think there's risk to earnings estimates and the forward outlook from your bookings, your expedia, booking.com, airbnb, those kind

of names, uber and lyft. on the positive side, the names that we like, doordash was at the top of the list. we just thought the estimates were reasonably relative for the quarter. there could be upside. and to the extent that there's a little bit of a mobility shutdown, the delivery companies benefitted from that in '20. we think they would benefit from that again >> what about the mega caps over the last week or two weeks, mark, that a pullback? any of them pull back enough that they became screaming buys? >> itself well, i'll tell you what i find interesting, wilfred, is those that didn't really move down uber has outperformed the market i like that, it's one of my top three picks. it may have problems near term but i think if investors could look beyond the negative inflexion from omicron, i think there's a really fundamental upside in valuation for uber i look at facebook and amazon. slightly outperformed the market i think they've got a heck of a lot of valuation support right now.

and i think they've got really nice stories coming out through the rest of the year amazon's been so negatively impacted by this dramatic investment cycle we've had the last year or two this year and the year after that we're going to start getting a return on some of that investment cycle, faster delivery meets more spend. so i like amazon that's part of the thesis on amazon and facebook is just a really controversial name, underperformed last year i think it sets it up for outperformance this year because we think the fundamentals are going to come through pretty strong for that name >> mark mahaney, you ran through a lot there very quickly thank you. it's good to talk to you >> thank you, sara chemical giant dow has been a bright spot so far this year, significantly outperforming the s&p 500. coming up, the ceo on his outlook for rising commodity prices and how that could impact the economy. plus, delta set to report earnings tomorrow. a look at how the omicron surge could be impact thing the carrier's results, ler oatn "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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because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade welcome back let's get over to mike for a look at stock performance in europe mike >> yeah, wolf. it's actually been one of the better performing nine u.s. markets for a while. here's how looked over the last year or so about five percentage points by the s&p but pretty much neck and neck into the summer and as often as discussed, the big margin in this period and many is the huge mega cap tech stocks of the u.s. that really aren't matched in the euro stocks so respectable performance but

not quite keeping pace with the s&p. goldman sachs has been trying to create this rubric that is somewhat comparable to f.a.n.g they would be euro 600 companies that are more the blue chips that are gaining shares in terms of revenue and market cap. this is granola. so basically what we're talking about here is lots of pharma, some consumer products, and a little bit of tech in there as well now, this shows you the trailing earnings per share of those companies relative to the overall index. as you can see, there are benefits to scale. there is still this kind of clustering of economic power at the top of the index just in the different industries now here's how those stocks, those 11 stocks now amount to in terms of the wading in the euro

stocks 600, up around 22%. it's basically the same as f.a.n.g. m. in the u.s. however, that's only five stocks and this is 11. goldman pointing out they're relatively cheap based on some measures, 2.3% dividend yields worth keeping in mind that it's not just energy and financials and other types of core value stocks when you're looking toward the european indices. >> well, it's not just, but that is a big part of it. and it's just really interesting in terms of the rotation that you talk about that's happening within, between the sectors here when people call for international exposure often it could be part of that selling mega cap tech and going into cheaper behaanks, cheaper energy plays the price are unbelievably low, particularly because of the yield curve is still negative. >> although the yields there are

starting to perk up. i was just seeing stuff about french yields are positive and all the rest of it >> german yields almost positive how about that first time i think we would have seen that since 2019 or something. mike, thanks just capital out with its ranking of top industry leaders. and dow chemicals hitting the number one spot in its sector. up next we'll be joined by the ceo and his take on the list "closing bell" back in a moment. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire matching your job description. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that

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just capital just out with its 2022 just 100 list this week the nonprofit's list is a comprehensive ranking of the largest public u.s. companies on esg issues of importance to investors. in fact, five key stakeholder groups, workers, customers, communities, shareholders, and the environment. chemical company dow among the top 100 companies this year, ranking 66th overall, and number one in its industry. joining us now is dow's ceo. jim, welcome back to the show. it's good to have you. wanted to start out with the workers section, which was weighted the heaviest and is top of mind right now with job growth and wages and safety precautions. how do you keep workers happy in

this environment where you're seeing a record number of them quitting in this great resignation? >> great to be with you, sara. and thanks for taking the time to talk with us. it's the second year that we've been the top in our category and also the top in the workers category and i think we've done a lot over the past year to make some changes and modernize the way that we do things for the workforce. it goes beyond paying a fair and a living wage for them it has workplace training and the kinds of training we give to them, creating a safe and healthy environment not just through covid but just in the everyday workplace, and also adjusting to things that we, quite honestly, needed to adjust to in terms of providing benefits that help improve work/life balance, things like extending maternity care to 16 weeks for either parent regardless of gender and that includes adoptive and

foster care parents, providing paid time off for things like elder care or for an injured or a sick family member also things that we did to provide time off for volunteering for going to vote, for getting a covid vaccination, all the things that help improve employees' flexibility and give them some space in what has been a couple of tough years. >> i wanted to zero in there on gender equity in particular because, by most accounts, the last year was a tough one of any kind, economic opportunity for women around the globe i know you disclose a lot of figures here including pay equity, which you've achieved, and it's still strange that that is kind of an anomaly. my question, though, is while pay equity is really important, obviously equal opportunity goes well beyond that so what else do you measure and do you do to achieve something like gender equality in an

industry that probably doesn't have a great history of that >> you know, we're pushing now to try to get towards 30% gender representation in our industry you see that at the leadership levels of the company. obviously, when you get into th shop floor, it's a bit more difficult in a manufacturing or supply-chain environment, but we're working hard to make sure that women know they have a place and it is a good place for women to have a career it is a safe environment and have the flexibility and create the kind of consult during they want to be part of we're seeing improvements there i would say we're very transparent about other disclosure, so we've been quite transparent on that. we measured gender pay equity for more than 20 years you can't tell you off the top of my head we've been at pay equity, but we're also doing that when it comes to racial

pay, so we're looking at underrepresented minorities and how they're paid relative to each other, we disclose that information as well. we're doing also things that would work on advancement in hiring so when you take a look at, you know, diverse hiring panels, diverse promotion panels, make sure we are all points of view represented and we can see increases in that. we have also tied pay toward representation, so now it's part of compensation is baited on helping us drive the representation numbers inside the company. i know you have also done a lot of work to reduce various emissions, though in your line the business and the sector you're in, clearly it's not as easy to do so as the broader

sectors. my question is whether the broader environment should aclose companies to have some add emissions, that this is part of a longer transmiss, and your views on how that that should 'reply to your sector and related sectors, like energy. >> i think we approach it from the standpoint of what can we do and what can we control? when you look at co2 emissions, rather than get into a cause-and-effect of climate change, our view is we can control co2 commissions, and you don't have to do it by switching completely to alternative energy we're top 20 globally, we use over 850 megawatts, but there will be a limit to what we can do we also have to be cost

competitive. you can continue to use natural gas, but do carbon capture and sequestration. one of the ways we'll do that, for example, the project we announce the in canada is make an investment there, where we'll build an ought on reformer, which will translate into higher -- which will fuel the crackers that's a circular hydrogen, but essentially it's a very efficient way to do it it's a little more expensive than what we do today, but if you can come up with a system that allows you to get a return for the co2, it doesn't have to be astronomical, $60 to $100 a ton, prices like on the european trading system today, you can't make a return on that investment >> i've learned about ethane

crackers there, jim. thank you for joining us i urge everyone to take a look we proficient it, jim fitterling the qr code will taking straight there. tomorrow we'll go to another just -- company. we look forward to that one tomorrow, an exclusive interview. up next, looking at delta air lines set to record tomorrow with a key read on holiday travel we'll preview what to watch, when we return

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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.

welcome back, phil lebeau is here with a preview on what to

expect >> remember last week he guided the street last time when we met with analysts. when the numbers come out tomorrow morning, as you look at shares of delta, a report of profit may not move the needle but first of all, what's been the impact on costs when it comes to covid-19, particularly at the end of last month and so far this month and hasn't resulted in what we could expect, a greater than expected slow down. what about a transatlantic rebound this summer? don't forget we're talking with ed bastian exclusive tomorrow. we'll talk with him at 7:0 back to you. thank you, phil. besides the delta numbers, guys, we'll also be watch fog this continued calm we have seen, mike, in the market, goods on a few days it seems like the

market hasn't shifted on the outlook. it's just a little calmer about it the market kind of got there you know, that sort of priced in what we might expect it's also noteworthy we got to these levels for the first time in early november. since then the market has radically ramped up. the inflation is not recall le calmed down, and yet, you know, we've had from records, but the overjohn index has remained here the stuff people love coming in, banks, financials already have a bit of a run maybe they need to calm down yes, it's calm, but i don't think it's necessarily as comfortable so far as the index may seem with the fed top of mind for investors, can't-miss interview,

with the president of the philadelphia fed, patrick harper, it will be a great chance to ask about the very hot inflation print. >> and whether we get a term that's more hawkish. we're out of time, by the way, on "closing bell" for today. "fast money," though, picks up next yes, it does thank you much in tonight on fast, a tech fakeout? one top technician casting doubt on the recent turnaround, why he seeing more trouble ahead on the charts, check out the moving in kb homes a. then an options alert on one of this years best-performing stocks see if you can guess who in the? it's a game you know, it's a bank, it's had a lot of problems, but the stock price this year