bought it during the show. >> okay. joe? >> amgen >> bryn? >> viper energy. it's come off a couple bucks >> rob >> jpmorgan. we still like it a lot >> all right steve? >> facebook just way too cheap >> all right guys, i appreciate it. dow is down 832. there abouts as i see. that does it for us. i'll send it to "the exchange" thank you very much, scott hi, everybody. this historic selloff continues. january is on pace to be the 10th worst month ever for the nasdaq we're down 15% and in total down about 17% from the november highs. the dow was down more than 10 0 points in the lows in the last hour it's in the red for what could

be the 7th straight day. we'll talk about some of the global pressures contributing to the selloff. peloton has been the poster child of the selloff it's had plenty problems to deal with we'll have the latest. and the other corporate targets, you can see behind me under pressure, peloton has been a bit of a tell for the market today it is back in positive territory. it's up 2.5%, so we've got that. >> that activist story is probably one of the few places that you're going to find some green, and all in this market right now. just a few moments ago, before i came onset here, i was looking at the s&p 500 there were roughly only about 16 or 17 stocks in the green in the entire index the s&p 500. roughly 20 stocks in the green right now. gives you an idea of how broad based the selloff is the nasdaq composite has been arguably the epicenter of this the growth trade technology trade, as you can see at the lows of the session, the nasdaq

composite is down 476 right now. that's 3.5%. it was down around 670 points at the lows at one point today. again, off the lows of the session, but even then, we're still down 3.5%. if you look at the sector heat map, check it out. technology, communication services and discretionary are pretty decently by far the worst performing sectors out there if you want to take a look at some of the stocks at the center of the selloff so far today, the worst performers have been high growth oriented. look over here moderna, the worst performing stock in the s&p, a covid vaccine maker but one that had run up a lot in the last couple years. netflix continued weakness subscriber of growth a real concern in vid ya down grocery store chain kroger and then dollar tree on the dollar stores up about 2% we can't forget what's happening with this kind of risk aversion trade and what the crypto currency side of things.

if you look at bitcoin and athere yum the orange line and white line, bitcoin and ether, are down 50% from the recent record highs if give you an idea of the one-day action, the estimates are roughly $130 billion of market cap has been wiped out crypto space watch those and the associated stocks that go along with them i'm talking coin base and microstrategy, block, pay pal and others ones to watch there. >> dom, thank you. my next guest says the selloff is revealing some pockets of value. joining me is david bonsen, the chief investment officer at the bonsen group what do you buy today? >> well, it's getting to a point where there's quite a bit one could buy. it's not sector slebter. we'll see if the full capitulation comes it's interesting energy is up on

the year, even with the last five or six days it's further interesting the bond yields are dropping and, in fact, have dropped about 13 basis points in the ten-year over the last five days. so this whole narrative that kwoilts are dropping because the fed is raising rates and bond is going higher is inaccurate stocks are dropping because certain parts of the market got way overpriced >> so -- but would you agree the catalyst for the correction is the normalization and the fed's tightening >> no, i would not i think that the fact that the fed was going to be raising rates this year was known a month ago, three months ago, six months ago and not just known, really known. smart money, dumb money, retail. everybody knew there was going to be some form of tightening, normalization. i don't even agree with the word normalization, although i know what you mean by it. they're headed toward a place of a more normal path, but i think

normalization would have a fed funds rate much more than where they're going to go, and the normalization of the balance sheet would get us back to 4 trillion they're not going to get close to that. they're going to be tightening on the margins, but no, i think the catalyst is that valuations got stretched and valuations always have to agist it's just we never know when >> what are your conclusions about the fed from all of that it sounds like you want them to be more aggressive than what the market is currently even talking about. >> that's a fair way to put it but i don't think it's that i want them to be, because all i can do with client capital is invest around what i believe will be. and i don't believe the fed is going to be more aggressive than they're saying and in fact, i don't believe they're going to get to four rate hikes i think they'll chicken out at around 3 the high yield bond spreads were 290 basis points credit is not reacting to the

selloff. i assume things have widened in the last few hours but not by much 2018 was sort of the level where you saw what happens credit spreads blowing out and the fed responding we're not even close to that yet. i think the fed will do marginal reduction of balance sheet through rolloff. i think they'll get about three rate hikes done this year. >> you describe this it sounds to me as a healthy maybe a needed correction. certainly in some parts of the market that had run too far. you said you like energy here. it's green on the year what else is interesting to you? where should people go as this kind of recalibration continues? >> well, it's tough for me to answer i really believe should go now where they should always be which is in higher quality we're not big speculators. and i do think, kelly, most of what we're seeing right now is speculation getting hammered and so what we call at our firm shiny object investing, you see

crypto down 50% from a recent high this is not the stuff stability is made of so we prefer companies that have stronger balance sheets. that could be in any sector. we're not anti-technology. i talk on your show a lot about liking old tech companies that have good dependable earning streams. some of those faang names were expensive. they've come in a lot. some haven't yet so the primary criticism i have is of the real shiny object stuff that was just purely speculative. way ahead of the skis, and now has gotten slaughtered we have no appetite to go into those types of names we want to focus on quality throughout this year, and for us, that means dividend growing names. >> quick final word. it's been rough for the financials you still likejpm. what would you say about the prospect for financials to perform well and for rates to -- i mean, you tell me what you think they're going to do, then?

>> i think it's interesting the narrative that a wider yield curve and having the long end go higher is supposed to help financials j.p. and truist, more so jp. we would be buying there the names that have really gotten cheap on financials are not the big banks but asset managers black stone and apollo have gotten cheap as well we really like those financial names, but we would have liked them even apart from the selloff. now they've just gotten more appetizing >> very interesting. david, great to have you here today. thanks for your perspective. >> thanks. >> david with the bonsen group speaking of bond yields, two years went up for auction. rick santelli is here with the results and the affects on yields >> this is a strange auction first, i'm going to give it an a minus. that's a good grade. 54 billion two-year notes. the auction yield.99%. it was a bit lower than the market was trading one issued

market yield, lower price nature that helps the grade let's go through the highlights. 2 .81 bid the cover. that's the best since april of 2020 but here's the metric that really caught my eye indirect bidders, foreign entities, the ones we really should be paying very close attention to, 66%. that's the best since the summer of '09 the one fly in the ointment, direct bidders at 9.4 %. that's the weakest since march of 2020. but it's well below 10 auction average. look at 24.6% for dealers, that's really solid. several extraordinarily good metrics. a minus. it's telling us wednesday last week the 20-year, aggressive bidders. the two-year, you talk about the biggest dagger falling from the sky, short maturities, most likely tied to the fed, and everybody is talking about the

fed oh, my god they haven't really done anything yet so investors really stepping up, thinking the current activity may somehow affect the way the markets are trading. maybe this week's fed meeting, but in the end, the two topics that i'm hearing the most of today is geo politics and the balance sheet. if you really want to do something, quit buying more treasuries now. back to you. >> we'll have more on geo politics in a minute let me ask you, because what david just said was interesting. the main market narrative right now is the fed has sparked this selloff because of its tightening so everyone is speculating if they're going to have to back off because the market is down so much david said that's not what's happening. the stocks collapsed under their weight they ran up too much in which case it would have no implications for the fed backing off, and maybe they maintain or stay aggressive and hawkish. >> that all sounds easy to say i don't necessarily disagree with the logic, but the fed and

the free put with equities goes back to alan greenspan i'm not so sure how much nerve they have, but i agree that somewhere along the line since 2007 and 2008 and all the sins committed against the free market where people have price discovery, there has to be a cost, and has to be pain and we are experiencing that right now. >> all right rick, thank you. it's good to see you we appreciate it as people try to make sense of global growth, china as become a spot of concern as they continue to battle covid health officials in beijing in full emergency mode especially with the olympics approaching. unius uniis there with the latest on the ground unius? >> thanks, wkelly. more districts in the city of 21 million people are requiring that residents get tested. in fact, 2 million people were tested on sunday alone

now, that testing was conducted in a part of the capital that had the heaviest concentration of cases which is only at about two dozen at this stage. authorities are also tracking down anyone in the city who has recently purchased and by just in the past couple weeks, any type of medication that treats fever or other symptoms. so it could be as simple as ibuprofen, and then those people are getting text messages to alert them to get covid tests. officials are especially concerned about two big events coming up in the next couple days first there's a lunar new year holiday in about a week. it's a heavy travel and shopping period and a few days later, it's the beijing olympics that's going to begin, and already 72 cases have been reported inside what is supposed to be a closed loop bubble among the staff. >> everyone watching to see what

happens there. not just for that event, but the implications for growth and the markets as well. we appreciate it it's great to see you. eunice reporting pandemic related lockdowns are leading the central bank to cut rates in china others are also happy to watch the u.s. take the lead steve liesman joins us with more steve? >> yeah. kelly, this is fascinating while is fed is expected to affirm market expectations for even balance sheet reduction, the fed chair's counterparts in europe and japan, happy to hold the door open and watch the fed walk through speaking last week, signaling no intent to join the tightening party any time soon. a global economist tells me the keyword is divergence. central bank moves are not going to be synchronized we have divergence among central

banks and inflation and labor market conditions. around the world, you see the blue japan and europe not expectedt tighten any time soon. the u.s. central bank could move as soon as march canada, as soon as this week mexico tightened already in december the bank of england, early february along with russia, brazil and chile meanwhile, china cut recently and india expected to cut. i'm told they expect europe to follow the fed six to nine months from now and most central banks will have to respond to labor tightening eventually. but for the moment, the u.s. with higher inflation and lower unemployment than most other developed nations is going to lead the way that could explain the interest we had from foreign buyers in the auction today. >> that's a great point. i wonder what it means for the dollar most importantly. i haven't seen this. i should have asked rick, but if we spreng then because we're ahead of the pack, that's another head wind for stocks in

the short term >> it could well be -- for some stocks, as you know, some stocks are going to do better with a stronger dollar, some with a weaker dollar. be careful with what moves the dollar theoretically, this should be better for the u.s. dollar with the u.s. strengthening, and if it getsinflation under control and that also looks to be, by the way, bad for something else, you probably talk about in this show, rypto. >> we will get to that steve, we appreciate it. steve liesman. still ahead, russian stocks are falling over increased tensions with ukraine the rsx russia etf down 8% it's done 20% this year. we'll have the latest next we're tracking the market selloff with a closer look at semis. we're trading in the 260s right now. keeping an eye on bitcoin which has gone green this may be the tell for how the rest of the afternoon goes for the markets. it's up 2%

netflix still lower by 7%. big declines there and in tech across the board as we head to break, look at the biggest decliners in the nasnasq we're back in a moment ♪♪ care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank. truist. born to care. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate.

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welcome back plenty of nervousness in the market already before we get to a possible russian invasion of ukraine. president biden having a call with european leaders in about two hours to discuss the situation. the state expect has issued a travel warning russian stocks are down nearly 20 % since the start of the year here to talk market strategy, we have two guests. welcome to you both. conrad, let's talk tactical first. this has been a really tough stretch for russian stocks obviously from other parts of the emerging markets what are you telling investors >> i think we're staying the course on a fundamental basis. what you've seen that's transpired has been geo politics just overwhelming any of the benefit that you're seeing on fundamentals

this should have been the perfect opportunity for russia and the stocks you look at russia inc. on a macro basis. from a stock standpoint, you look at the companies trading low to mid single digit ps and generating 20% free cash flow yield, you probably get back the market capitalization in the dividend over the next two years. obviously all of it is right now sidetracked with the geo political tension issue that we're currently seeing it creates the opportunity for emerging markets and creates the opportunity where fundamentals come through with all the volatility, it is getting lost on a day like today. >> that's interesting. you think the yield will compensate for the declines. you think about double the exposure to russia certainly hale invested there. admiral, it is hard risk for markets to price what would your advice to investors be here? do they just kind of ignore the situation unless it completely

escalates or do you have any guess what's about to happen >> i put it this way 25% chance we see an all-out blitz created by vladimir putin. he goes to kiev. he changes the regime, the whole thing, really, dramatically up ends european security 25% i think there's a 50% chance that he will conduct some kind of invasion, carve out a chunk that one may settle back down, but even there, that's a 75% chance of massive sanctions going into place on the russian oil and gas sector on russian oligarchs. and there ain't going to be nothing but air whistling through north stream two for a long time if that happens. 25% chance, kelly, we may be able to work through this diplomatically that's how i'd sore -- score it right now. >> conrad, what does this mean for energy prices?

does it leave them fundamentally higher than they should be >> to your point, i think it's going to be structural much higher if you think of countries in europe, coming from a u.s. perspective, obviously i'll leave it to admiral to talk about the geo politics, but i think that's a big blow for europe, in terms of into the winter months, it's obviously timing-wise, you look at whether it's opportunistic or not. it seems like it, but for europe and massive sanctions like that, it's going to hurt europe significantly more in my mind in the end, and obviously we'll push up oil and gas prices j especially looking at europe staying almost the highest and paying for gas at this point so i think fundamentally, i feel that some of the more independent producers like luke oil, will be owned with double wave but russia is only 3%. but i think that's where the opportunity is, because they are low-cost producers i think it doesn't do anybody

good it's going to be negative for the global economy and especially much more negative to europe >> maybe also helps explain why energy is still higher on the year and what's been a terrible market have some of these supports as well from that situation admiral, you know, not that you're in the business of giving advice to investors here, but what should -- what are we -- is it this afternoon's call what are the main catalysts or dates on the calendar or main points that we should all be watching to understand which way this thing is going? >> well, first disclosure, i'm actually on the board of new berger berman's mutual fund complex. so i know conrad quite well. it's great to see him. but there's no house view on this i'll give you three things to watch. one, cyber watch for cyber attack as the leading edge of what putin may or may not decide to do, because he may feel there's some deniable in going that route number two, watch putin's troop

movements if he's adding any more, and in particular, watch for medical supports so far we haven't seen those field hospitals move forward that would be a key in my mind that he's about to close the switch and number three, watch solidarity watch the statements coming out of nato. listen to the nato secretary general. he as the best pulse on what's going on around the alliance it's a very delicate moment. i would say probably a good one to hit pause, take a deep breath, and hope diplomacy prevails >> conrad, i'll give you a final word do you have any advice you'd leave investors here with who are wondering given all the moves we've now seen in international equity markets over the past month, what opportunities, what are the best opportunities you see? >> sure. and thanks for that.

i know urn talking about china just before i dialled in and i think when i look at longer term, fundamentally, china where people were in love with china and the internet stocks and now it's despondency. typically in the emerging markets, those are the best opportunities. when there's kind of blood on the street things look fairly dire, china for us at this moment looks like good, valuations are supportive, and you are into an easing cycle. but china was very tight before this they have that room to now ease across a lot of emerging markets today. so i think that's where the fund want tall difference would be, and india for us remains the structural best story i think globally, and especially with the financial sector in india. and i think russia is obviously geo politics today, but longer trm, and i'm hopeful the fundamentals play out and offers that opportunity at the moment despite significant volatility

>> yeah. it's a tough call. >> kelly, can i add one point to conrad's excellent dissertation, which would be in terms of china, i think we're headed into a year of living quietly with china. because president xi has the 20th party congress coming up in november he's not looking for a big operation. some have said oh, watch russia go into ukraine and china will follow in taiwan i don't see that at all. i think china remains pretty stable >> very interesting. maybe some consolation to investors. down 4 % today gentlemen, thank you both. we appreciate your time. all right. let's talk a little bit more about russia and how the u.s. plans to respond we have details on what is being considered with elon >> the treasury department has already started working on a

package of potential sanctions against russia if it were to further invade ukraine as you mentioned, i spoke with the treasury secretary before the selloff this morning i asked him directly if markets had been adequately pricing in the risk from russia here's what he told me >> i won't speak to where the markets are and what they're pricing in i can say that we're prepared in collaboration and coordination with our european allies to meet a significant cost to russia if they were to invade ukraine. the choice belongs to russia they can choose diplomacy or the route that leads to economic consequences >> he last spoke with the ukrainian finance minister on friday treasury also imposed sanctions on russia in 2014, but clearly they haven't stopped president putin. >> from what i can tell you is the sanctions package now is broader and more significant than what we did then and would

have a more significant impact on the russian economy in th short-term and over the long-term. >> i also asked about the possibility of blocking access to the swift system or of even banning exports of american-made products >> every option is on the table. and we're considering those options not just here in the united states and not taking action to just here, but our european counterparts and our allies in europe are willing to take action with us. >> kelly, ultimately he believes that sanctions remain a powerful tool, but clearly, some critics believe that they haven't served their deterrence purpose >> very important detail to bring us today we appreciate it let's get a quick check on the markets at the session lows today, the dow was down 1,150 points we're down 790 for the moment. that's a 2.5% drop look at the nasdaq decline from

the year highs the s&p down 7.5% from the highs. the nasdaq down just shy of 10%. the biggest drops in tech, health care and utilities. energy is the only thing positive on a year to year basis. the oil and gas names are olding up in the action they're seeing declines of 1% to 2 % and they're up to 10% from the recent highs exxon down less than 5%. meme stocks different story. game stock down about 10%. it's below 100 at one point it was in the 80s amc is down about 11 % i believe went below $15 a share earlier. it's above 16. both the names are 80 % off the recent highs this is a 52-week chart. robin hood hitting an all-time low threatening to break below $10 a share. we're back to $12.50 it's below $85 a share from back

in august. and still ahead, as mentioned, the dow off the lows which were more than 1100 points. we'll look at the sectors helping spread the turn around bitcoin is in the green. well, no, not anymore. we're back in a moment

welcome back, everybody. let's drill down into the sectors making big moves this afternoon. the dow down 700 and change. we were down 1100 at the lows. we are looking at the slide in semis and crypto and we are tracking thetech names getting hit the hardest. deirdre? >> the nasdaq was down more than 4 % earlier today. we're off the lows it is that high growth complex that continues to bleed. tesla, airbnb, big decliners

rtf was down more than 4 % more than 6% today, and as wall street bets notes, berkshire hathaway outperforming on a year to date and 12-month basis megacap tech not providing support for the sector today amazon was down more than 3% firmly in bear market territory off more than 20% from the 52 -week high microsoft, alphabet not far from the technical level. ibm tonight. classic legacy tech. be better d microsoft, apple, tesla later in the week. over the last 30 minutes, we've seen the nasdaq compare to pair earlier losses some of the names in the black include software so zoom was briefly in positive territory. adobe slightly higher.

>> i have to check as i'm saying it's fast-moving those are places to watch for a turn here to help us swift through for terms is mark tenner, founder and ceo of strategic let's go through as we hit the areas of the market. love to know, let's start with tech what are buying and which are you selling today? >> it's obvious we are officially in a correction, and it's all about risk off right now. and tech, if you think about it is ground zero when it comes to risk in investor's portfolios. nobody wants to own any of the my valuation, high growth stocks right now, but i mean, this is when smart people who make smart decisions make money and we're waiting right now for the opportunity to pounce on some names i think there's a lot of good names on sale. the question is when to pull the trigger. the selloff isn't going to stop until apple hits the 200-moving day average in 147 to 148 range.

the market is not washed out yet. look at microsoft. down 20 from the peak. i would buy more right now could it go lower? absolutely but i wouldn't be mad at myself if i bought some of that >> you'd be insane to try to bottom tick any of that. quickly as a followup, people have been talking about apple as a tell i remember even when we were talking about with mike novagratz. he said we hit 3 trillion. he said apple is the stock to watch. do you think it's above where you would buy it i'd probably buy around 150, but i think the selloff comes to a conclusion around the 148 level. it's like the bellwether of the market >> as we talk tech, let's get specific about the semi conductors the smh is down 3% 15% for january.

this one peaked back in november >> it did, but we're still if we're talking about the components, you're seeing carnage across the board, micron, qualcomm, lam research down about 0% or 1% and 3% nvidia has the third largest impact it's tracking for the worst month since july of 2008 it's coming off the lows over 6 % higher and then amd advanced microdevices, one of the nasdaq's 100 biggest decliners to start the year. 32% off the 52-week high and 7% lower or 6.5% lower. last week piper sander warned of a slowdown in the pc market for 2022, and semis wouldn't be spared by the rising treasury yields environment amd's biggest competitor intel fairing a little bit better and the ceo is boastful earlier this month he posted a video on linked in stating the company's pc processors will never be

beaten by amd, and amd is, quote, in the rear-view mirror if you compare both companies year to date, he might feel vindicated intel is only 2% lower this month, and amd down about 22%. and given the drop in the constituents, we'll come full circle etf is also trending lower today. >> thank you mark, what would you do with the chips? >> look, i mean, chips are outperforming software that's not saying a lot. when it comes to chips, i'm a long-term bull we don't have enough chips in this world we need better, more advanced, more efficient chips so we can do pretty much everything we want to do as a society. i own nvidia and amd i'm sticking with them i'm not selling them i'm not saying i would be buying more right here. nvidia is still a bit extended but back around the 200-day moving average and they're in the highest end growth markets autonomous markets, gaming, amd

obviously probably had quite a bit of pull forward during the pandemic in regards to their notebooks unit but they're light years ahead of intel technology those are both great companies and i think as an investor, if you're confident three to five years from today, they're going to be higher, as we mentioned, we can't pick the bottom you have to know they're good names and be willing to buy or hold them. >> mark, we appreciate it as we watch that sector struggle same with crypto all weekend this one was really setting the tone it doesn't stop trading so we all watch that slide happen and then the market catching up to it kate rooney maybe now the market is wacatching up to the fact tht the market is down by 2 %. >> markets are open on the weekend. it makes it busy for us. it's bouncing. it was just back above 36,000. keep an eye on that. this morning, bitcoin and athere yum hid a six-month low. the selloff is the effect of crypto currencies becoming more

mainstream macro funds have bought funds, they're turning to crypto as one of the first places they sell for liquidity. analysts are pointing -- saying this morning that the lion's share of losses are coming from newer buyers they call those short-term holders who appear to be taking any opportunity to get their money back right now glass note estimates only 32% of bitcoin market cap is held at a profit. one way to measure investor sentiment is called the fear and greed index. that is now at a 13 out of 100 last month, for example, it was around a 39 to put it in perspective. and leverage, that is another big theme we've talked about in recent weeks being told there's a big spike in bear senment in the options market something to keep an eye on, and a lot of liquidations. in the past 24 hours, there's

been more than $470 million in leverage positions unwound that's only in the past day or so >> wow i love the fear and greed index. didn't know bitcoin had one. we're only at 37 for the pakt. we're not into the extreme fear zone thank you very much. mark, how would you trade crypto >> anyone who said crypto was an inflation hedge is probably hurting quite a bit right now. it's obviously a risk asset, and it's okay to hold it as an asset class for diversification, but understand the risk. crypto benefitted substantially throughout the pandemic from all that additional liquidity. i mean, there was trillions in fiscal stimulus, and they either went into your coin-base or robin hood account the tail wind is gone. i recommend to my clients, own as much as you're comfortable losing maybe that's 5%. maybe it's 10% if you're 22, maybe it's 80% of your portfolio, but own as much

as you're comfortable losing, and if a 10x is good for you, great. >> you think a 22-year-old can lose 80% of their money? >> i read an article last week in the wall street journal that it said millennials are now shutting financial advisers and there was a story about some guy who was 25 years old he had 95% of his money in crypto and said who needs a financial adviser when i can buy crypto and 10x my money. >> even he would probably say -- ns not all money i would -- >> i would agree with you. i would agree. he's probably rethinking his strategy >> point taken let's move along finally and get a check on the streaming stocks which are not escaping the damage today, especially netflix at one point it was down about 10% toward the 350 zone. julia is here with more. what's going on here >> well, what we're seeing here is the streaming stocks have been plummeting on growing concerns about slowing subscriber growth.

and this follows netflix's d disappointing outlook. netflix, the shares are down about 6.5% after the stock was on hold from buy saying the company may need to shift to focus on video games and this follows downgrades and price cuts on friday roku shares are down about 1%, and then you see roku down about nearly 1%. disney shares offnearly 3% on the concerns that netflix's concern that the subscriber growth could be lower than expected when they report. and omcast, that stock down about 1% today an upgrade from rbc from sector perform to outperform. the analysts saying they think concerns about broad band, subscriber trends are overgrown. >> thank you very much mark, wrap things up for us.

any of the names jump out to you as a kwood buy here? >> yes let's pump the brakes and put a few things in perspective. netflix is trading at the precovid high. you can get all that covid-related subscriber growth for free you're getting a company that is now positive earnings-wise it can flip cash flow positive if they want operating margins in the high teens, low 20s it's a much better company today than in 2019, yet it's priced the same could it go lower? sure could it be higher in three to five years yes. disney at $130 back in 2018 or 2019, when they announced disney plus, the stock went from just under 120 to over 130 overnight. if that thing falls to 120, and i can buy the parks and the cruises and all that stuff, and be patient with them, and get disney plus for free, why wouldn't i do that so at around $120 disney looks attractive >> mark, thank you very much for

the specifics, the trades we really appreciate it today mark tepper. up next, more on the selloff including some bright spots as we head to break, here's two of them in the dow. travelers and home depot are in the green right now. we're back in a moment

welcome back to "the exchange". >> we mentioned the sea of red we continue to monitor the selloff. we see relative outperformance green on the screen among some defensive sectors like consumer staples and utilities. as you can see behind me here, we are seeing some resistance to the selloff from the home builder stocks that includes names like toll brothers, lennar 1.5% gains today's moves as we see ten-yearst treasury yields slip

lower after a strong start to the year the move higher in yields has had the home builders under pressure the spider home builders, xhp and itb down around 15% so far this year. as we continue to watch the moves in treasury yields, keep an eye on home builder names standing under the green in a sea of red >> very interesting. meantime, the activists are out in force kohl's. and then unilever from transnelson pelt david faber has not approached any unilever with any requests and peloton, and activist shareholder going after peloton in a letter asking them to fire the ceo and put themselves up for sale all three companies mostly h higher today

peloton up 7%. we have the author of the peloton story over the weekend welcome. c cara, peloton, this seems to be kind of an of course play at this point right? >> it's true if you look at shares, they've been on a downward trend for about a year down from the high of 80%. i think a lot of activists and potential buyers have probably already been eyeing this one it will be interesting to see the first activist is calling for extreme measures you know getting a new korea and putting the company up for sale. it will be interesting to see how the company responds >> i guess kohl's may be a little less obvious to me as a candidate. but retail always seems to garner these kinds of pressures. >> they do, and in part, because the way to unlock value, or the theoretical way to unlock value is often so obvious. you have the brands and also the real estate.

it's sears argument. kohl's is an off mall department store. they're generally in parking lots elsewhere there's a belief you split up the assets >> shares up 33% to date do we call it a trend. a trend is it random if this is perk lating at the same time? >> it's interesting. they're both a very different stages kohl's of course had activists on its case for two years ow this is the second year in a row it is targeted by multiple activists at once. is this enough pressure to force changes like dan said transaction or a full sale or something else peloton we are in the beginning of the story i feel like the company has a chance in the earnings which are weeks away to come up with some new strategy that's going to get the shareholder trust back and

been through that before. >> dan, what do you think peloton could or should or will do here? >> okay. in full disclosure, i'm a user of peloton. >> biassed >> i admit my bias up front. that said, look, i don't think john foley will step down. i don't think they'll take a fire sale price. maybe 30 or 40% premium. i think that earnings is important. in the interim, a week and a half away, i'm surprised they don't tell the story more in an interview on cnbc or me or somewhere else february 8th is a lifetime away and letting people define them. >> we welcome peloton on any time

cara, as we look through the narrative with everything that's happening with it, should we expect peloton to be a takeover target >> i think it's in focus already but what is really going to matter is does the company have aal termtive plan that's just as compelling as a sale and we haven't yet heard from them that's the important thing one example last week activision selling to microsoft in a similar situation. they got a soft approach from microsoft. i'm sure peloton is getting approached. >> great point thank you both for joining me today. up nirks, did dow falling for the seventh straight time for the first time in nearly two years. how to trade it, next.

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welcome back the nasdaq is still having one of the worst months ever and down almost 17% from the highs so what do you here? joining me is steve grasso steve, it is a lot better look this afternoon than a couple hours ago. i don't know what changed. >> yeah. probably nothing when you have to think about this everyone is panicking and they always ask you as a trader, does it feel panicky it hasn't until netflix fell off the cliff. people are starting to look at the economy and saying, how's the underlying economy that's all that an investor should care about. the underlying economy is sound. manufacturing, pmis are good europe is beating.

asia is beating. the only weakness we saw in the u.s. on the service component caused by the omicron virus. i don't know why people are panicking over did economy because now you have the fed and goldman is tripping over themselves to say how many times the fmoc will raise. what if they raise half of what the market digested? we rally. >> right. >> so my point is, if they raise less then what happens to the dollar the dollar comes in so that decreases the pressure on the front end of the curve which will increase the steepening of the yield curve so value outperforming in that scenario. >> i so agree with you and if somebody asked i would give them basically the same explanation how this is likely to play out but what if this year is different because their to keep

tightening >> why would they have to keep tightening if they have to keep tightening then they're rebottic. they have to react to the pressures on the economy if inflation -- they said transitory depends on what you call transitory you would agree and they would agree a tremendous amount of this pressure caused to the supply due to the pandemic in every metric to look at the pandemic is subsiding. everyone would agree on that inflation should be coming in. so if they want to get ro botdic and just raise rates in the face of an abyss then they can do that but i don't think they're going to do that. >> well, let's boil this down to where you're positioning are you in the value trades? what are the examples of what this should look like?

what should people do with the opportunities? >> we are not looking at 2020 when people thought that the pandemic was going to ruin the economy. we're looking at an economy that's recovered or will recover so you want to be invested boo the value names. paper and chemical names very hard to convince someone not to buy apple very hard to convince somebody not to buy facebook. i own apple. so apple for me is a lifer long event. not a cyclical event why not a buy the dip event. yes you can buy large cap tech if it's a fear mechanism to do so and hold it but you should be invested in value plays right now and looking for bargains. >> quick name or two >> you know my names dow, wrk which is west rock. those are the names that you want to be invested in the other one i talk about that

doubled and tripled is capri >> all right. >> that's high end retail. >> kate spade? >> versace >> that's right. steve, thank you very much today. we are well auoff the lows "power lunch" starts right now good afternoon welcome to "power lunch. i'm tyler matheson we are watching another lousy day for the markets. dow down for the seventh day i a row. there is carnage in crypto bitcoin now at the lowest level since july $130 billion in crypto market cap wiped out in 1 day bitcoin just didn't work as an