offers from companies who know your skill, quickly? >> yeah, i have, but i already work for another company, and i enjoy doing that >> all right jack, thank you very much. and you're at central florida university >> yeah, university of central florida. >> good luck to you, my friend >> growing presence on twitter >> we'll hear from him >> tracking his emissions, as well you'll hear more about that. >> "closing bell" right now. >> thank you, kelly and tyler. welcome to "closing bell." i'm sara eisen here at the new york stock exchange. solid day in the green for the major averages though currently off the highs, the dow, the nasdaq both higher. nasdaq up .6% as we head to the close. >> i'm melissa lee in for wilfred frost. peloton among the top performer stocks in the nasdaq, surging on news of a new ceo, much more on that story ahead treasury yields meantime jumping as investors await a key inflation reading later this week the ten-year yield hitting its highest level since november of

2019, and the energy sector taking a bit of a breather, down 2%, as oil prices slip 59 minutes to go in the session, sara >> coming up on today's show, three ceos from three different industries give us insight into the consumer, the supply chain, and inflation. we'll talk to the leader of makeup giant cody, which is jumping on the back of earnings. also the head of personal care company edgewell, which is moving in the other direction, and after the bell, numbers from chipotle and speak exclusively with ceo michael nichol ahead of his call with the analysts >> let's focus on the big stories we're watching today mike santoli is tracking the market action, and joining us to talk about the shakeup at peloton is aaron kessler >> we are kind of ido idling, w closed in the s&p 500 at 4500 even on friday that's basically where we are right now. we had a little bit of a wobble in the last hour or so it has been some late day weakness, but nothing really to

speak of just been kind of marking time in this zone, kind of indecision, halfway between the january highs and lows yesterday. the low on december 1st was 4513 or something like that the high back here in september was in a similar area. so kind of can go either way i would say net-net intern al, more positive than negative. there's positive breadth underlying the market. a cyclical tone. dwroent i don't think it's necessarily negative here we go, two-year track of the nasdaq 100, relative to energy exploration and production, which is kind of the whip end of that energy trade. some convergence here. look how big the gap was there in the middle to late part of 2020 you are having a pullback in the energy complex today both in terms of the commodities and the stocks which are kind of overbought they have really gotten a little ahead of themselves but very strong uptrends none the less. also, plays on volatility,

virtue financial the big market making firm, the high frequency market making firm had very good numbers reported this morning, and you can see the stock benefitting. it's at a high whereas black rock, which you would say is a proxy for the buy and hold, the etf business, and other long only strategies has struggled recently, even though it should be doing well, but asset values are lower you see a little cross there on a one-we're basis, all the intraday volatility and day to day was good in the fourth quarter, and it's only gotten better for it in the -- so far this year, this quarter. >> good comparison amgen, for instance, responsible for more than half of the dow gains right now. we have a market flash on mandiant, which is surging eamon javers with the details. >> that's right, there are reports out there right now in the media that mandiant might have some acquisition interest from microsoft we're working to confirm that. we can't report that just now, but what a wild ride that would

make it for mandiant if that is in fact the case this is a company that was sold, i believe back in 2013, to fire eye. then divested its fire eye assets in 2021 became mandiant again, and now is subject to some acquisition interest. that's created that pop you see in the stock there and we're waiting for confirmation of any of that. i have been texting with a number of people who are close to the story and we'll see what we can get in terms of confirmation and detail, but it has become sort of the go-to cybersecurity firm out there, if your company is hit by a cyber attack, these are the guys you call we saw news corporation doing that in a story a couple days ago with their recent hack. they turned to mandiant for forensics and advice on what to do and how to handle the situation. that's put them in the headlines a lot over the past year, and now maybe that's translating

into interest in the company we have to wait and see if they respond to our request for comment. back over to you >> eamon, i have a question for you. it's interesting because we have seen cybersecurity companies being sold to larger companies, chip companies, software companies in the past, and you have to think about how this could be integrated with microsoft's user base, and it does seem like it would be a match in terms of the corporate customer base, microsoft detaining kevin mandia, who is a name brand in this space >> he is a very visible figure in all of this and microsoft, of course, itself has a pretty robust anti-fraud and forensic effort. they are good at this stuff, too. and you can imagine that matching up those two teams would create something of a powerhouse but you do wonder about sort of the integration of those two things you know, mandiant was looked at as an acquisition turgt by fire eye, and whatever reason, that deal had to be unwound

not entirely clear why that one didn't work, but it didn't work at the end of the day, and kevin mandia took his brand back and went back out on his own this could be partnering up with obviously a much bigger partner here in the shape of microsoft >> it's only been mandiant as a separately traded company since june of last year. it hasn't been a long streak of independence here. we'll watch the story. thanks, and by the way, microsoft shares for what it's worth, not moving too much on the news, they're up still by about .8%. peloton shares meantime are soaring on news of ceo and cofounder jon foley plans to step down. the company cutting nearly 20% of the corporate workforce peloton also posting a loss for the quarter. here's outgoing ceo jon foley on the conference call, noting the company's mistakes >> we also acknowledge that we have made missteps along the way. to meet market demand, we scaled our operations too rapidly and

overinvested in certain areas oour business. we own this. i own this and we're holding ourselves accountable. that starts today. >> joining us now is aaron kessler of rayman james and simien siegel of bmo capital markets. aaron, if you really wanted to have a clean break and own up to things, you would expect john foley would be out of a job, but from an investor standpoint, does it look like enough will be different with john foley continuing as the executive chairman >> yeah, hard to say how much of an operating role he's going to have going forward here. we have seen a lot with ceos moved more to an executive type of chairman role, so i think they did announce a few things on the call that were more positive in terms of the expense efficiencies, especially on the logistics side i think with barry mccarthy coming in, he'll probably put more discipline in with peloton as well. so john kind of owned up to some

of the missteps they had that's probably the right move, moving to a new ceo, and probably better than i feared in terms of the subscriber growth number for the year. we were thinking in the 600,000 to 700,000 they guided to 700,000 for fiscal '22, so maybe better than feared >> cutting expenses a step in the right direction, but it's not going to restore a growth trajectory what does the company need to do at this point? the activist investor involved in this name wants foley out they want more drastic action. what in your view needs to be done given what they have laid out on the conference call >> yeah, so listen, i think aaron brings up a good point about not better than feared we have to ask is that a good thing or a bad thing if you're trying the kitchen sink, giving a number that's better than feared keeps you on the fence. we were talking aboutgist yesterday this idea of you have to make a clean break. you need to create a reset and then you can start building back up. if instead what you're given is sort of a version of

retrenchment, but then on the conference call, talking about we're going to be back to growth over the long term, you're sending mixed messages that might help the stock today but probably creates questions for the long term. that's where we are right now. i think to your point, you're not missing the fact that it's executive chairman it could have been non-executive chairman, could have been any number of things, and that's going to be part of this conversation anyone walking off the call today needs to say what actually did just change. >> we were saying the same conversation, i don't know, what was it, a few years ago with under armour kevin plank left after growth came to a halt he was a great founder and ceo stepped aside, patrick frisk came in as the operator, focused on profitability, stabilized inventories and now under armour is one of the hottest turn around stories on wall street. and i know that john foley and kevin plank are friends. is that something that can be done here? is that's what's happening >> i love this topic and i think it's such aperfect comparison.

both on the way up, this idea of a founder that built something truly impressive than then stretched it too far and scaled it too far and had to make cuts, and then later, worked on rebuilding it. i think the important thing about under armour is it took them years to go from no longer growth to now shrinking to grow to now being brand elevating again. that's how long it takes it doesn't happen in the same conference call. you don't get a company that both cuts their workforce dramatically, acknowledges this is on them, and in the same conference call, says but, we see the opportunity for growth to come back right away and get credit for it. this is a process. i think you're right it's the right decision. they're hard decisions because these surround people, but at the end of the day, there path up, first we need to fix before we then start focusing on growing again. that's what's happening. i think we talked about this yesterday, i think the bullish decision, the healthy decision for the stock is actually not necessarily the bullish decision for the near term, and the bullish decision for the near term is not necessarily the healthy decision for the stock.

>> that's one to think about thank you for joining us peloton up 25% we appreciate it >> after the break, makeup's moment shares of cody are jumping we'll talk to the ceo, sue nabi. the dow back up nicely, more than 200 points. you're watching "closing bell" on cnbc. 49 minutes left of trading power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contracts prices around.

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its earnings before the bell home to covergirl and gucci and burrberry, it beat on eps and raised guidance and saw sales rebound in the u.s. and other crucial markets like china i spoke with ceo sue nabi about the brand's market share gains and whether her turnaround strategy or economic reopening is what was behind the strength they're seeing listen >> honestly, i have to say this is really the work we have done, because the markets are continuing to be a bit difficult, specifically on what i call mass cosmetics. it's really covergirl and the other brands from europe like max factor or sally hansen, which is present on both sides of the atlantic that are gaining market share this market share gains are due clearly to two things. the repositioning of each and every brand on its original equity, covergirl now stands for clean makeup in america.

makeup activist in uk. max factor is back to its equity as the brand of makeup artists, and sally hansen continues to grow with its salon alternative positioning. this coupled with a big bet that i have made when i joined coty, which is to say coty as a company is going to lead the clean beauty revolution in mass distribution, be it with covergirl or with the kind and free line launched in europe or more recently, max factor with its miracle pure line. this is clearly positioning us as a key partner for retailers to grow the makeup category in sync with what consumers are looking for today, which is makeup but with a healthy side in it, a clean side in it, and what we call skinnified makeup i have to saythis is due to th work we have done since one year now. >> what are you seeing in the marketplace that you say is still challenging from a macro

perspective? >> the markets are not back in consumer beauty at the level of 2019 that's why again when you said that what's lifting us is the reopening of the economy, it's true, but really to a lesser extent than the repositioning, the new launches, the new communications, and the clear bet that we have made behind clean beauty, skinnified beauty, on both sides of the atlantic. >> what about fragrances what's happening there >> so fragrances let me for one start with something that has nothing to do with figures this, as you can see, is the first fragrance that's globally distributed using sustainably sourced alcohol. you know, this comes from our partnership that we signed one years go, which is an american biotech company, to allow us to transform gas emissions from factories into alcohol with a cosmetic grade that we have created at coty. this is the first production it happened at the end of last

year in our spain factory, which is really a first that i wanted to share with you, since consumers are more and more looking for products that do not have an impact on carbon this one has even better, a positive impact on carbon footprint in terms of, you know, co2 print around the world this is big news the other big news is our innovations that started in q1 into q2, such as gucci, burberry, had outstanding results. both are among the best innovations on the u.s. market >> i did want to ask you specifically about china, because the economic recovery there has been slower. and the restrictions stricter. so i'm curious what you see in the coming months out of china and how critical of a growth market it is for you >> so what we are seeing in china is two things. if i give you our growth in calendar '21, we were growing four times faster than the

chinese market if you look to the holiday season and the quarter two, we're growing six times faster than the market. so for us in fact, we are accelerating our pace of growth in terms of sell out on which chinese market the other information from china is that the fragrance category is now outpacing in terms of growth, the skin care and makeup category imagine for a company like coty, that's very strong in fragrances, be it on mainstream, premium or ultra premium, this is a huge opportunity for us, and we're going to couple this opportunity with our new footprint in makeup thanks to go gucci and burberry quite confident about the chinese market >> have to ask about obviously the kardashians. you have made a big bet on kylie and kim. i'm curious, kylie in particular got so much buzz when you first made the deal. i'm wondering if that is still growing or whether that's peaked and what your plans are for the

kardashians. >> we launched kylie cosmetics in the first quarter i have to say this is continuing to be a strong growth driver of the business, specifically in the u.s. but we are also opening a lot of doors for kylie around the world. i was a few months ago in the uk, i was two weeks ago in italy, and i can tell you everywhere we open a kylie counter or wall of kylie cosmetics, it clearly becomes a top seller of the store. it attracts a new generation of users that do not enter classical perfumeries. for us, it's exactly the story that made us acquire the brand one year and a half ago. >> our thanks to sue nabi, the ceo of coty. and melissa, it has been a pretty incredible turnaround story. the stock was below $3 in the depths of the pandemic in 2020 it's now more than $9.50, and the story has been underperformance in sales relative to estee lauder and others mass market beauty has been

weak she's been doing cost savings and cuts and also focusing on prestige and skin care. that is showing some strength. and that's why you're starting to see am market share gains that, and of course, the carbon captured ethanol fragrances and taking kylie jenner global >> kylie jenner is pretty big. also the bounce in travel retail, which has got to be much improved since the depths of the pandemic >> absolutely, and the chinese comeback >> about 39 minutes before the bell rings on wall street. the dow is sitting pretty much at session highs, up by more than a percent s&p 500 and nasdaq trying to reclaim the day's highs. nasdaq seeing a surge in shares of apple, amazon, microsoft into the close. still to come, a farewell to arm. chip maker nvidia axing its deal to buy arm after serious regulatory pressure. we'll discuss what it means for the chip sector and softbank check out some of the top searched tickers on cnbc.com ten-year yield on top followed by peloton, meta, pfizer, and

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let's check on individual market movers. shares of novavax plunging on a report it has only delivered a small fraction of the 2 billion covid-19 vaccine doses it planned to deliver globally. some shipments have been held up due to regulatory issues >> meantime, shares of mandiant are soaring on a report that microsoft is pursuing a deal for the company. mandiant declining to comment on the report that stock is up 21.5% dupont jumping they beat on earnings and revenue. provided an upbeat sales outlook. jim cramer talking about dupont in his investing club newsletter you can point your phone at the qr code on the screen. >> even does it while on vacation up next, we'll talk to the ceo

of schick parent edgewell, and how inflation and supply chain factored into the results. >> plus, chipotle getting set to report earnings in under an hour we'll talk to bryan nichol before his call with the analyst, and as we head to break, a check for you on bonds. yields are seeing a big pop today. the ten-year note yield actually is sitting at its highest level since 2019 up to just below 2%. 1.95% or so. equity markets strong. dow is up threw 41 getting a surge here into the close. we'll be right back. (vo) america's most reliable network is going ultra! with verizon 5g ultra wideband now in many more cities. hey, it's mindy! downloading a movie up to 10 times faster than before. whoa! is that done? (mindy) yep! (vo) verizon is going ultra, so you can too.

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shares of edgewell personal care sinking, down almost 13%. the company posting mixed results for the quarter, lower earnings outlook for the year. joining us for an exclusive interview is edgewell ceo, rod little it looked like a pretty in line quarter. market not taking it so well talk to us about what you're projecting, that's unnerving investors. >> yeah, sara, good to be with you. we were up 20% last quarter. you didn't have me on, and we're down 12% today at this point, and here i am. look, i think it's a buying opportunity for our shareholders we hit our numbers for the first quarter in what has been very difficult environment around supply chain and availability. at the peak, we had almost 10% of our manufacturing workforce out in december due to omicron and we were still able to hit our number in the first quarter. i think the biggest thing that people are looking at today and

driving the stock price lower is inflation. we talked about 400 basis points of headwinds in the quarter is now 500. as we look at it forthe year and so there's more inflation in there. we didn't change our core guidance for the core business we held that unchanged all we did was flow through the new news of the billy acquisition around accounting changes and amortization flowing through, and we're super excited about that that's going to add four points of top line growth to the year we think it's a good quarter and there's a lot to like about the business >> on the inflation story, rod, since you mentioned that is the big focus for investors, i remember you said last time that it was the worst inflation you have ever seen in 25 years in the business are you not able to pass on higher prices to consumers to absorb the costs >> still true, sara. it's gotten worse since last time we talked yes, we are able to price for a good portion of it, not all of

it what you saw in the first quarter on our gain is roughly half was volume, half was price. we have more price that will start to flow in throughout the rest of the fiscal year. and so where we are leaders in the category, we price and we'll move, and where we're not, we'll follow pricing is one equation, but there's lots of levers we can pull we're stayed disciplined on our cost take-out program. 200 base points of cost take-out if you look at our gross margin profile, that's why our gross margin print is actually better. we have more levers to pull. >> rod, you mentioned the increase in inflation that you have seen, 400 basis points to 500 basis points what's the primary driver of that 100-basis point increase and how should investors think about this inflation how much is structural, how much of this is transitory? >> yeah, there good news is the new inflation peak we're seeing is primarily around materials. and so we have talked about

resins in the past being significantly up this last round, chemicals, specifically chemicals that go into sun care formulations are the big drivers. as i look at all of these materials, you look at where the curves might go. we have seen resin peak, sow now it's how fast does it go back down same with some of the sun care materials. i think the new inflation up that we have seen personally is much more transitory in nature >> that's a pretty strong statement. so rod, just round it out with a picture of the consumer. so you do shaving, you do the feminine care business, and sunscreen. those are the three primarily ones and the wet wipes all of these businesses went haywire in different directions during covid with a strong demand for wipes and sunscreen and less for shaving and feminine care. are we back to normal? or how far away are we from what would be sort of normal trends you would see from the consumer in these staple category snz. >> we're getting there and so i think we're not back to

normal yet but what you're seeing is all of our core categories, x wet ones are improving. shaving, sequential growth in the category our share perform is better. sun care, our performance better and fem care, we grew by 5% this quarter. our categories are evolving positivity, the consumer is there, demand is there the problem is how do you meet the demand in the short run? and we're all struggling with that, when you have a 5% to 10% of your workforce out. we're beyond that now. the good news is as i look at it today, the omicron outs are back to what i would call a normal rate and so i'm quite optimistic that our ability to meet the demand going forward is going to be better, and we see the demand there. i would guess by the time that we get to late spring/summer in our categories we'll see more people back in the office, more shaving, more daily grooming routines and a lot of people getting out, going on vacation with leisuretravel, which will

drive sunscreen. so again, we're optimistic for the balance of the year. >> yeah, and transitory inflation. rod little, thank you for joining us with your thoughts >> thank you >> time for a cnbc news update with rahel solomon >> hi, melissa here's what's happening at this hour on your cnbc news update. ucla is paying $246 million to settle a sexual abuse lawsuit against a former gynecologist at the school dr. james heaps is accused of abusing more than 200 women over a 35-year career the lawsuit said that the school ignored decades of complaints and deliberately concealed abuse. >> for the third time in the yeaser spelman college has received a bomb threat the campus of the historically black college was locked down for four hours while officials searched for explosives. classes are suspend for the day and the campus remains closed to visitors >> kia and hyundai are recommending owners of half a million vehicles park outside until compares can be completed. at issue are hydraulic issues

that could cause shorts and engine fires the recall include some kia shortages and k-900s as well as some hyundai santa fes >> and president biden offering praise to tesla. biden acknowledged tesla as the country's largest electric vehicle maker, offering praise for its investments and domestic manufacturing. >> since 2021, companies have announced investments totaling more than $200 billion in domestic manufacturing here in america. from iconic companies like gm and ford, building out new electric vehicle production, to tesla, our nation's largest electric vehicle manufacturer. >> interesting development, sara, in the relationship between tesla and the white house. >> i say finally we brought it up with brian deese, the economic adviser. he didn't have a good answer for why tesla is never invited or mentioned. >> i guess that's their answer

now, they have now been invited. >> rahel solomon, thank you. bl we have just under 30 minutes to go before the bell. here's where we stand. near session highs, in fact. s&p 500 up .75%. the dow is up 364. you have consumer discretionary and materials in the lead. energy and real estate lagging tech is joining the party. nasdaq up more than 1%, and small caps up 1.5% >> straight ahead, a broken arm, nvidia and softbank breaking off what would have been a blockbuster deal in the chip space. >> plus, a big hour of earnings coming your way with chipotle set to cross after the bell. we'll dive into the numbers with brian niccol before he talks with analysts. (vo) america's most reliable network is going ultra! with verizon 5g ultra wideband now in many more cities.

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nvidia's acquisition of arm is officially over announced in 2020, nvidia was set to acquire arm from softbank in what would have been the chip industry bfs biggest deal ever, but regulatory pressure led to the deal's collapse. they said arm has a bright future and will continue to support them as a proud licensee for decades to come. softbank is planning to take arm public in the fiscal year. joining us now is the managing director of semi-conductor research great to have you with us. i think the big question from nvidia shareholder standpoint is what does it do next it has about $19 billion in cash it throws off a lot of cash every month. every year on top of that. what would you like to see it do >> well, for nvidia, it's really no sweat off nvidia's back that this deal ultimately failed. it was pretty much doomed from the start. the regulatory issues were significant. nvidia had to get approval from

four jurisdictions, the u.s., the uk, the european union, and china. each jurisdiction had their own competing conflicts. so there was a very low probability that this was going to get approved. having said that, nvidia is such a strong player in machine learning and artificial intelligence, the future is very bright for nvidia. we believe nvidia will ultimately become the first trillion dollar market cap semi-conductor market cap company given the growth, given thu the earnings potential for the company. >> what about arm? what's next there? ipo? >> yeah, i think arm is most likely scheduled to go public. there's obviously debate whether they want to list it in the u.s. or in the uk arm's revenue actually has kind of accelerated the last 12 months it's up about 25%, so they're doing about $2.5 billion of sales. they're starting to generate

adjusted ebitda. the margin profile is improving for arm. arm is expanding beyond smartphones, more into automotive, iot, into the data center, into networking infrastructure which are one of the reasons why some of the reasons why nvidia was interested in it, mainly because of the data center and networking infrastructure opportunities. but arm is showing some signs of reacceleration in growth and profitability. >> we have to leave it there thanks so much >> thank you and be sure to catch an exclusive interview with arm's ceo on tech check. >> when we come back, pfizer drops a revenue miss and downshifts in gm when we take you inside the market zone plaus, will it be a burrito blowout? chipotle's earnings are coming up in just a few minutes we'll be right back.

welcome back here's a look at what is ahead in the second hour of "closing bell." the ceo of chipotle joins us exclusively to break down results ahead of his call with analysts we'll also get earnings from lyft which is off 40% from its one-year highs we'll talk about the technical side of meta after it sees more pressure even in the face of tech strength today, and a closer look at treasury yields, what it says about the market's perception of the fed and inflation. we have under 13 minutes to go in the trading day we're now in the closing bell market zone.

cnbc's market commentator mike santoli here to break down the cl crucial moments of the trading day, and we have joe terranova back as well we'll kick it off with the broader market major averages in the green and near session highs the dow trading almost 4% from its record highs, up 372 we have seen a final hour surge, which is the reverse of what we saw yesterday, where an indecisive market spilled into the close. a heavy cyclical leaning today, consumers doing well, industrials, financials, materials, and tech also part of the story. >> second day in a row where it's very indecisive in terms of this narrow range. it's held in check in terms of big moves, but yes, it's firmer underneath if you want to point to the positives thrk market is absorbing this big move in global yields higher obviously ramping up central bank tightening expectations and there is a bit of traction in the cyclical parts of the market all that stuff is to the good. i think some of the big tech

stuff, there nasdaq is moving on the usual suspects of apple, microsoft, nvidia, and also am amgen today. it is mega cap catch-up moves. it's not about anything going on with those companies without really saying we know which way is the next move because we're sitting in check ahead of the cpi number, you have signs the market is showing a little bit of resilience here. >> we showed the outperformance of the russell 2000, also under the surface in the tech trade is a surge in semi-conductors a highly cyclical part of the market joe, how do you interpret this given the rise in yields it's not, i don't want to say not often, but usually yields provide some sort of a ceiling for the tech trade, particularly in the higher valuation areas. you have the work-from-home trade, the etf, that is outperforming the markets too today. >> yeah, so i agree with mike's observations the market is overall kind of feeling as if they're running on a treadmill. just working very fast, but we're not really going anywhere. and i think that's uncomfortable

for investors because they're not really used to what this is, and that's a time correction melissa, i think much of the price damage in terms of the correction occurred already in january. now you're kind of just really running in place here, waiting to get further clarity on the inflationary pressures and on the federal reserve itself i do think today there is a lot unfolding within the market that's positive. i had said yesterday on the halftime report, i was concerned about the selling in facebook. would that lead to mega cap selling overall that would take down the s&p 500 but i like, as you described the market today, the cyclicals working, small caps having a very strong day today. and you're seeing sectors like financials contribute. and melissa, we're doing all of this with a ten-year rapidly approaching 2% i think we have a little bit of a maturation process as it relates to what yields are going to be doing. maybe the market has absorbed

that, digest ed it. >> even home builders are surging on the back of the treasury yield surging as well >> pfizer is one of the biggest losers in the s&p 500 in the wake of its disappointing earnings report. meg tirrell has the details. >> well, the quarter itself, not so much in focus they did have a beat on the bottom line. slight miss on the top line, but it really is the 2022 forecast that folks are looking at interms of driving down the stock. and that's despite pfizer forecasting $54 billion in combined revenue for its covid products $32 billion from itsvaccine, $22 billion for its antiviral pill, and analysts note and the ceo told us earlier, those numbers could go higher because they're just based on current contracts signed and analysts are expecting pfizer to sign more deals throughout the course of the year in terms of the availability of the antiviral pill, it's still hard to get in the united states and elsewhere right now. here's what the ceo of pfizer

told us about how that's going to change and when >> every month will be better than the previous one. we're giving away more in february than we gave in january. way more in march. and i think significant quantity starting in april. so i think pretty soon there will be, let's say, way easier for people to find paxlovid. >> pfizer is also testing ways to expand that drug in terms of who it's used for, people at standard risk, not just high risk, and starting a trial in kids of paxlovid as well pfizer stock down about 3% another thing i'll mention is m&a, they have so much cash coming in, and their expectation is they're going to be big buyers >> meg, thanks >> joe, you know, pfizer over the past 12 months has been an outperformer relative to the health care sector wondering what you think of it here in terms of valuation it looks cheap in terms of forward pe, and as meg mentioned, it's poised for

interesting acquisitions, especially given the beaten down valuations we're seeing in the biotech sector >> so i think this is the opportunity for the investor who is not allocated towards pfizer. the same opportunity that presented itself back in october when the stock declined and that proved to be a trough as it moved higher into the month of december you're getting the same technical opportunities. it's pulling back right now to the supportive moving averages what you're doing here is you're valuing the base business on what that business really was before covid, but now it's a business that's going to be additive in terms of the cash that's been generated as a result of covid. so what do they do with that cash do they just return it to shareholders, do they focus on innovation, or as you suggested, do they ultimately do m&a? i view all of those things as long-term positive, and as i said, this is a great technical setup, good entry point if you're not in pfizer right here.

>> pfizer down 3%. just looking at the meme stocks getting really bit up here into the close. gamestop is up 11% amc is up 9% mike, brian cohen did tweet earlier linked to the gamestop app, never know, but that is a trade that had not been working with higher yields and it is today. >> i don't think yields have anything to do with it hasn't been working, period, down 80% from their highs. you do have crypto rebounding a little bit that makes some similar folks who are in similar stuff feel a little richer. and yeah, there was just kind of an nft noise around gamestop so hey, amc, we had the oscar nominations today. reminds people movies exist. i have no idea what's going on >> you just don't think like a meme trade it doesn't sound right it's a rough session for some of the legacy automakers today. shares of g m sinking after getting a downgrade to equal weight and a price target cut to $55. the firm saying it has concerned

about gm's ability to shift to electrification and that we may be approaching the peak in record high auto prices. morgan stanley also reiterating its underweight rating for ford, saying, quote, the hope around both ford's and the legacy industry's ev strategy may exceed reality joe, throwing some cold water on all of the hype and excitement around ford and gm lately and the ev plans what do you think? >> i think adam is tempering the enthusiasm that he had in particular surrounding gm. a $20 price target cut, that's a significant one, $75 to $55, overweight, back down to an equal weight but candidly, the setup is actually, i view it, better in ford it's even better because i got stopped out of the stock the other day. so now it could go higher once i'm stop out but jim farley and the team are doing an excellent job and ford's business is being managed, i think, in the right way, in trying to achieve the

goal of electrification. again, relying on the technical setup, the tectical setup is more supportive for ford than it is for gm. i have a little bit of a disagreement in terms of what adam is viewing with his respective - >> adam jonas, morgan stanley analyst. >> absolutely. but his rating on ford is not as high as his rating on gm i actually would reverse that. i have a higher rating on ford than iwould gm >> he's got the highest rating on tesla you know what i thought was interesting about note, he broke down the sum of the parts, but at the end of the day, some of the parts is no good unless you unlock that value. the only way to do that is to separate the company, and the company said on a previous conference call it was not looking to do that at this point. it's focused on manufacturing evs. >> yeah, exactly the market never really gives the diversified company with a legacy business plus an emerging growth one full credit for the value of that new thing.

that's correct so some of the parts sometimes is sort of the refuge of people invested in value traps. i dhooing do think it's interer broadly, his case is the auto industry is likely peaking this year the stocks look cheap. as home builders look cheap, and i think that's one thing to keep in mind. you have these cyclical industries at the forefront of the economic story that may be they're seeing peak profits and to me, that's where the debate lies it's not so much obvious it's the case in advance, because they could extend this thing out and maybe pricing is a little bit firmer and there's a big catch-up on production and so that's where the battleground will be here in gm and ford >> all right chipotle set to report after the bell here kate rogers looks at the key numbers investors should be looking for. >> analysts are looking for eps of $5.25 on revenues of $9.6 billion. same store sales are expected to

increase by 14.8%. we're going to keep an eye on digital sales metrics, loyalty growth with its membership at 24.5 million last quarter, and of course, pricing and pricing power. chipotle has said it has pricing power. executives last quarter expressed they had confidence about the ongoing value proposition the brand has. we want to know how inflation in everything from beef to labor is impacting business, and the ceo brian niccols going to join us exclusively after earnings we'll get to hear a lot more from him on that front back over to you >> looking forward to it thank you, kate. >> we have just about less than two minutes to go in the trading day, mike. really strength in a lot of the commodity names, airlines, home builders >> and actually very strong below the surface too. more stocks up than down the equal weight s&p was outperforming. 2 to 1 upside versus downside volume on the new york stock exchange that's a plus. the market is rallying without one of its recent leaders which is energy. if you take a look at the xle

energy sector etf, compared to wti crude over the last year, in lockstep have really nod deviated at all, except for a few times there. and you see just the slightest little curl lower to illustrate just how much of a head of steam that sector has built up and that's a very modest pullback. volatility index has declined more than a point. down below 22 on the vix you don't want it to be too agitated we're waiting for the cpi number we're still above 20 it's a pretty long stretch of the market being a little clenched up, but certainly at the lower end of that range now. >> less than a minute to go to the closing bell rings the nasdaq looks like it's poised to finish close to the highs of the session we saw a real surge. 1.96 is the approximate level of the ten-year yield right now nasdaq up. we have strength in semi-conductors in particular. 2.5% gain there. a tilt toward the cyclical

sector of the market sara mentioned materials, up by 1.6% a big gain for alcoa a lot of individual movers there. the bell right now, sara >> finishing near the highs of the day. nice rally into the close. welcome back to "closing bell. i'm sara eisen along with melissa lee, in today for wilfred frost, and mike santoli as always. investors are now awaiting earnings from a pair of big companies. we'll have instant analysis, to results from chipotle and lyft as soon as they're released. >> plus, brian niccol, ceo of chipotle, breaking down his company's results in an exclusive interview before he joins the analysts on his company's conference call. >> first up, joe terranova still with us.

courtney garcia from payne capital management joins the conversation and courtney, are you feeling better about higher rates? that was the message in the markets today. we saw the ten-year run up almost to 2%, highest level since 2019, which sometimes lately would cause a sort of panic or selling, at least intic knowledge, but you saw tech rally, a lot of cyclicals, reopening plays all do well today. what does that tell you? >> it's really positive to see how well the markets are recovering so quickly here i think realistically, it's showing all of the volatility over the last month is nothing more than a run of the mill correction that we tebd to see once every 12 months we'll probably continue to see longer term durations, as interest rates continue to rise. we're making sure our investors are looking at good opportunities as we look forward. one thing we're looking at is we're likely going to see a big shift in consumer behavior where it's not just goods we're buying, now things like leisure,

hospitality, that services sector we want to look at here airline said, for example, could be a good way of playing that. just looking for some of the opportunities here as things are shifting means take advantage of those deals as they're still happening. >> joe, usually when we're talking about the ten-year yield flirting with 2%, it's not in a positive context, but yet today we saw the surge into the close. i wonder what you make of some of the individual moves bah we still have weakness, particularly in facebook, and as per alphabet, we're pretty much back to the pre-earnings levels. so it's basically erased the big giant pop it had >> yeah, and i feel better seeing the price action today, because today wasn't so much about the mega caps. there was a strong tone to apple and to microsoft but overall, melissa, it seems as though the welcomemat is ou in some unique places within the capital market structure that it wasn't previously. we're seeing now cyclicals and financials get very strong bids. small caps, which previously had

been the weakest link of the major indexes, they're performing strong. i read a positive note today from goldman sachs on europe wow, when was the last time you read a positive note on investing in europe? so the welcome mat is out in other places i like that. maybe 2022 doesn't have to be all about the mega caps. >> no, how about deere closing up 5%, and a lot of the strength, mike, in materials -- >> i'm long. >> you're long, joe. so adco, a competitor, had strong earnings. aluminum prices at 13-year highs. this is also a message of strong economy, which you know, there were concerns in the last few weeks that the fed was going to take us into recession by hiking interest rates at a time where fiscal stimulus is wearing off is this a signal the market is feeling differently about the story? >> the market is reading it as a very compressed slowdown first quarter gdp if you look at the tracking models, doesn't look good, but nobody thinks

that matters it's a give-back to a strong nominal growth last kwaurmenkwaurmentd quarter, and at least the parts of the economy that can operate in this reflationary world that have end demand that's strong and you have explain constraint, that applies in a lot of stuff in the business to business world. yes, they're worthing fine i don't think we're talking about off to the races for earnings because there could be slippage between how the economy does and how corporate earnings does because there's been a massive buildup toward record profit margins to this point yeah, i think the market right now is pretty happy with rates going up when the economy seems like it canstill have some goo traction >> it seems like the message under the surface of this market action, courtney, could be that the markets believe that the fed can actually be effective in fighting inflation with higher rates. that seems to be the all clear at this point. at least when you take a look at what moved today in the face of a ten-year treasury yield at

1.96%. >> yeah, and i completely agree with that. seeing all this positivity means a lot of this has already been priced in. the markets have digested this move, and realistically with interest rates where they are now, we're still barely back to pre prepandemic levels it's not like we're seeing interest rates skyrocket, but rates will continue to rise, and the markets seem to get onboard, and it seems like they are >> and yet, joe, even with the tech rally today, facebook, i know we talked alphabet earlier, but meta down again. dragging communication services. that one can't catch a bid what's the story there is it just completely changed? >> it's very, very strong institutional and retail ownership that's unwinding itself and finding a home in other places i suspect a lot of the positive price action post earnings that you're seeing in names like amazon and amd and nvidia is captured capital coming out of

facebook going into those names. so it's really this internal rotation as it relates to the mega caps, more than what i previously feared and said on the network yesterday, where i was worried you would see selling pressure and facebook extend throughout the mega caps and take the index down. that's just not resulting, not the case right now and that's positive overall. >> i would also say, the stock finished $4 off its high at about three times -- off its low on about three times average volume, so it's folly to try to pick a low, but there was a lot of activity. a lot of people who feel right around these levels where it traded before the pandemic hit, who knows, maybe the risk/reward is getting slightly better >> $218 was that level, by the way. lyft shares are up by about 3% on earnings. deirdre bosa has the numbers >> melissa, they're bouncing around a little bit. it is a beat on the top and bottom lines but light on active riders so that may be causing

for volatility a penny beat on the earnings per share adjusted revenue coming in at $970 million versus $940 million estimated. that's up 70% year over year as we toib continue to see this recovery in ride sharing active riders, it is significantly lighter than expected, but revenue per active user much better than expected the driver shortage continues to ease active drivers grew by 34% year over year in the quarter president john zimmer tells me their incentive spend peaked early last year. record contribution margin which investors will like to see, and this company continues to be positive on an adjusted ebita basis. as for the omicron impact on demand, zimmer says it will show up in the current quarter results. he's hopeful, though, this is the last turn and now they can execute on investments they have been making. we'll hear more on the call as well as we do usually get guidance for the quarter and year ahead

shares are up 3% on top of a good session remember, though, the long term story for the stock is it really has not gone anywhere, neither has uber since their ipos. >> incentive spending has peaked, and it looks like the driver shortage is easing. that spells better margins for lyft >> it spells better margins but i guess the key now which we'll continue to focus on is demand riders came in light last year it was supply that was the problem. so perhaps an interesting dynamic there. we'll have to see what else they say on the call, but the fact that average revenue per rider is up means they're getting more money per trip, so they have that driver piece figured out. demand may be a question now >> thanks. deirdre bosa again, bouncing around, about flat right now don't miss the interview with lyft president john zimmer, that is tomorrow on "squawk box." >> joe, do you like lyft >> i like companies that have pricing power. let's hear what they say on the earnings call. for a trade, you could see both

uber and lyft bounce hire. i don't know if you want to be buying these for a longer term investment you have to do a real study on what active ridership is going to look like once we normalize society more and the challenges that they have as it relates to drivers itself so let's hear what they say on the call you have to respect and like the fact that they have pricing power that's critical in this environment. maybe for a trade, i would buy the stock, not more than that. >> courtney, i know you are very much on the reopening theme, especially post omicron, but i think you're playing it in airlines instead of companies like lyft. why? >> yeah, i think what you're looking at is there's a huge demand towards travel right now. a lot of pent-up demand for the leisure traveler and also the business traveler. those lead to a catalyst where you might see the airlines hit their 2019 revenues later this year, quite possibly and interestingly enough, there's about 90% of americans saying they're expected to spend as much on travel this summer as they were back in 2019

so i think we have been waiting for this to come around for a long time. we're finally at this turning point. i think we're around the corner from that. your lyfts and ubers, those are going to be beneficiaries of that as you see airport volume go up. you're also going to have people taking more lyfts and ubers. so seeing some of the driver supply issues ease, i think that's one of the bigger hurdles they need to reach, which sounds like they are. that's a positive thing so far for lyft >> lyft shares are down by 1%. really bouncing around mike, it's interesting because lyft makes the case, too, that with airline travel coming back, and we have seen the numbers that the peak omicron hit happened early in january, so it's gotten better ever since, people need to take a lift to get to where they're going once they land or to get to the airport. >> absolutely. i think that as a reopening play, it absolutely works. i think even before covid, thoi, these stocks were suffering from the fact it was very difficult to model out exactly how they get to very attractive

profitability given the economics of what they're sharing with drivers and the constraints ultimately on pricing. i don't think that part of it has changed, but the direction is better in terms of how the demand story and fundamentals are going. the stock, you know, closed the first day as a public company at $78. so that was way back in 2019 almost three years ago >> point out chipotle shares pop popping, 4% up after hours earnings just out. kate rogers with those numbers >> a strong quarter here for chipotle eps beat of $5.58 adjusted revenue right in line for the quarter, $1.96 billion comps beat up 15.2% versus estimates of 14.2% digital sales a metric, up 3.8% to $811.3 million in the quarter and up nearly 25% for the full year accounting for just under half of all sales restaurant level operating margin at 20.2%.

driving sales were price increases that helped to hold up profit margins which were lovely in line with estimates as the price hikes seemed to offset wage and food inflation pressures. for 2022, the company is guiding for first quarter comps in the mid to high single digits range. perhaps a bit conservative there due to omicron, and brian niccol coming up next with us here. much more on the quarter to come >> kate rogers, thank you very much nice move after hours. mike, this company continues to show that it has, speaking of pricing power, it has the ability to absorb the higher costs. all the ingredients are going up beef prices, avocado prices. and they're able to pass it on >> they are, and i think they have the advantage, too, of a customer that was not completely hooked on rock bottom value fast food they always were traded at a premium in terms of their menu, and also they paid more than minimum wage over the years too. if you're worried about those dynamics affecting the sector,

they're probably better positioned stock also is 25% off its high it really was one of though pandemic beneficiaries people did hide in that stock because they were managing to do good things even as the pandemic raged and transferring to drive-through. >> why did it go down so much, because it was such a winner >> it got sort of bound up with a lot of, you know, the great growth stories that people extrapolated too much from and it's pulled back you could point to starbucks at one point had a hiccup in this regard as well i do think it can rebuild from there, and you're seeing this 1560 is an interesting spot, though it does not get them back anywhere near the highs. >> its high valuation didn't help up 7% almost right now, its shares in the after hours session on the back of this. thank you, joe and courtney. good to see you both and we're just getting started on the second hour of "closing bell. up next, exclusive interview

with brian niccol on the restaurant chain's earnings ahead of the call with analysts. and we'll bake down the charts and look at whether meta sha e starting to look attractive. back in two.

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and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ shares of chipotle popping, up now more than 6% after just reporting an earnings beat ceo brian niccol joins us for an exclusive interview along with kate rogers. katd, over to you. >> thanks so much. brian, thanks for being here and congrats on the quarter. >> thanks, kate. >> last quarter, we talked about pricing power and the ability that the company continues to have to increase cost. i'm curious how you're evaluating price hikes and if there are concerns about consumers potentially pulling back if things go too far. >> yeah, look, we're pretty fortunate with the pricing power we have. i think we have talked about this in the past our brand is really strong you know, we stand out with the commitment to food, the culinary, the customization.

you really can't find that anywhere else. and the fact remains, even though we have taken some pricing to date, our chicken burrito is still less than $8 for most parts of the country. so we have more room to take price. as we need to. obviously, we want to take our time on doing that but where we see these price increases on our input costs being sticky, we will obviously need to figure out how we take advantage of our pricing power and find any efficiencies in our business so that we don't have to pass all of it on >> there's been a big shift to the suburbs over the last two years. small town locations are proving to be a success for the company. with sometimes better unit economics than traditional chipotles. when do you project to get the 7,000 locations across the country? >> we're really excited about our development opportunity. this past year, we opened 215 chipotles, and you know, the fact of the matter is we have a really strong pipeline for 2022 and beyond

you mentioned our small town success. we're seeing units opening in small towns, i think this is towns of 40,000 people so a little bigger than maybe some of the small towns you and i might be familiar with, but the economics are as good as our chipotles have been, and if not, a little better. we're optimistic about our ability to grow our footprint now to 7,000 restaurants across the united states and canada and the economics continue to just really be best in class >> brian, it's sara. i wanted to drill down on the pricing a little bit more. so how much have you passed on to the consumer? how much more is there to go and at what point does the consumer say enough? i know you have a strong brand and you're able to do it, but how much higher can this inflation story go >> yeah, look, obviously, i hope the inflationary environment slows down, but where we are, if we were to take no more pricing in 2022, we would have about a 6%, a little more than a 6% price increase

we know if we need to take more pricing, we have room to do it to date, we have seen no resistance from our customers. i think i heard someone mention we're fortunate our brands and the customers really do believe we're a tremendous value, so if we need to continue to pull the lever on pricing, the fact that we have only 6% planned so far or executed in 2022, we have room to take more if we have to. >> do you anticipate that you'll have to? what do you see happening on wage pressures, input costs, commodities? what happens then? >> unfortunately, i do think we probably will have to take a bit more pricing throughout the year i was hoping we would see some things start to pull back more than we have actually seen you know, we mentioned beef. we mentioned freight those things continue to stay elevated and until we start to see some of these things pull back, we probably will have to continue to take some price we're in a really good spot on labor. you know, our back to our

staffing levels precovid, and we have made a lot of great progress on that front so we feel like we're in a good spot on wages. there probably will continue to be some pressure on wages but i think we're seen now as one of leader in the industry, and we attract and retain the best in the industry >> brian, how should investors think about the price increases and what goes and what will stay in margins some of those price increases i would imagine is labor costs and that is sticky, and some is food inflation which is not sticky. should investors think about eventually when food prices come down, that that margin expands >> look, i'll give you a for instance we just released our foreth quarter, our margins were 20.2%. if you normalize things, we think you'll see us in the 23% range. and that's with us being efficient, taking the 6% pricing

we're talking about that's already built in to the business and you know, you have to remember, the winter months are our weakest margin months. we have opportunity to accelerate as we get into what i call kind of the key burrito season when you get into spring, summer, and people are out and about a lot more so obviously, we'll pass along costs where we have to we want to be as efficient as possible so we can minimize that we love the value proposition that we have, and we always want to be a leader in value as well as a leader in culinary. >> i had no idea that burritos were seasonal, that there's a peak burrito season. brian, i want to get back to the idea of the chicken burrito being $8, pretty much everywhere in the country when you talk about there's room for more price increases, how much is that burrito going up? what is sort of the limit that you think about that a consumer is willing to pay for a chicken burrito? is it $10, $12 >> you know, luckily, we have not tested what that limit is. and i really hope we never do

have to test that limit. obviously, being at $8 and less for our chicken burrito, i think is tremendous value. when i look around, you know, the average ticket at chipotle, it's more in the $12, $13 range when you add on guac, chips, drink. we know we have a lot of room based on when we look at i would say some local players that have the same quality food as us. they're 20%, 30% higher to get the same quality food. and i would argue not with the same customization, not with the same digital access, and not with the same speed that we can provide. so we have -- we're in a very fortunate position a strong brand, pricing power, and then an organization with great people that are focused on driving up all efficiencies. >> market agrees stock up almost 7% after hours we appreciate the time ahead of that call. >> yeah, thanks. thanks for having me >> brian niccol.

kate rogers, thanks to you as well >> up next, mike santoli is back to look at what the bond market is signaling about the outlook for inflation. >> plus, lyft falling despite posting an earnings beat and revenue, also a beat there an analyst tells us what he nfen cl ickis in the company's coercealwhh ckoff in a few minutes [children laughing] doug? [ding] never settle with power e*trade. it has easy-to-use tools and some of the lowest prices. get e*trade and start trading today. imagine getting $150,000 dollars... for one year of epic adventures... in a new dodge hellcat... and you don't even have to quit your day job. dodge has created the sweetest gig ever - aka chief donut maker. you'll go from dodge fan to dodge ambassador this is a once in a lifetime opportunity, and anyone can apply. you just need to show you have the drive. are you our new

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stocks closed near the highs of the day let's go back to mike santoli for a look at treasury yields and expectations for inflation, mike, after bonds sold off today. >> yes, bonds sold off yields up across the yield curve. this is the shape of the treasury yield curve ten-year yield minus the two-year yield this covers the last two fed tightening cycles. here's what you saw. yield curve peaked, down into the first rate hike, which happened right here in 2015. picked up a little bit because rate hikes went on hold for almost a year and went right down again as hikes went and the market said they're not going to be able to go that long. it's late cycle, and that's the way it happened. yes, we went to a lower high in terms of the yield curve, but what the market is saying is there probably is going to be multiple hikes, but they can't get that high, probably not above 2% in terms of short term rates and that's what the

ten-year is suggesting take a look at market implied inflation expectations this is the ten-year break even inflation break even rate which is derived from the way inflation protected securities are priced it's around 2.4% obviously higher than we sought in the last decade but we were up there back in march of last year, no net change, and we're way down from the highs. what happened here the fed piv lted to get more aggressive on their messaging about rate hikes this suggests the fed is going to be successful in restraining inflation and maybe after this year is done, who knows if there rill be more room for rate hikes. >> thanks for that reporting earnings and a revenue beat, but a miss on fourth quarter active riders. we'll get analyst reaction >> plus, amazon shares have been soaring, but we'll hear from one chart expert w ss lthhoayheoaes the stock right now. you're an owner with access to financial advice, tools and a personalized plan

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time for a cnbc news update with shepard smith

>> from the news on cnbc, here's what's happening the french president emmanuel macron arrived in ukraine today to meet with president zelensky, and there he said russian president putin told him that moscow would not further escalate the crisis. but later, the kremlin denied reports of any agreement, saying moscow and paris cannot be reaching any deals >> retired pope benedict is asking for forgiveness today for what he called grievous faults in how he handled the clergy abuse scandal while a cardinal in jurgermany, but he admitted no wrongdoing and no personal responsibility he was responding to a report that accused him of misconduct in how he handled abusive priests when he was a cardinal in munich. benedict's lawyers disputing the report, saying he wanat involved in any of the cover-ups of the abuse. >> several families of loved ones who died in the bronx apartment fire last month are suing the building's owners. they're now alleging safety

violations led to the loss of life 17 people were killed in that fire, including eight children fire officials say a malfunctioning space heater was to blame the builder's owners deny responsibility, saying the facts will show the allegations in the lawsuit to be false. >> tonight, the army has a brand-new strategy to fight climate change the details and the rest of the headlines on the news, right after olympic curling bronze medal round, 7:00 eastern, cnbc. sara, back to you. >> looking forward to all of it. thank you, shep smith. >> take a look at lyft moving lower after hours following earnings moments go. the ride sharing company beat on eps and revenues but active riders came in lighter than expected and lighter than the previous quarter as well joining us is bernie mcturnm from needham i guess it makes sense with omicron that riders would be lower than the quarter before. everything else looks solid. volumes, revenue per user, adjusted ebitda. what's the takeaway for wall street >> you hit the nail on the head.

the major thing is that riders were down slightly sequentially. while consensus was expecting them to be up about 9% we actually have a mobility supply tracker we saw prices in the industry go down earlier this year, and that told us there was a demand problem in the industry. we talk a lot about the e equilibrium of supply and demand before omicron, it was folks on getting drivers back now it's waiting to see how demand comes back on the other side of this variant >> so talk to us more about pricing. you said you saw a drop, a sign of demand, but generally, what kind of pricing power do lyft and uber have in this environment where it has been harder to come by drivers? >> yeah, i think that's one of the big takeaways from the pandemic for the ride sharing companies, is that there's a lot of pricing power consumers are showing a willingness to absorb that inflation. long term, i still think for the health of the industry and to really expand the number of users on the platform, you want

to keep prices low it shows they have a pricing lever to play at some point here, and i think we'll learn more about this as the uber investor day on thursday we prefer uber over lyft we have a buy rating, our top pick for '22, they have interesting levers to be pulling themselves in terms of advertising and new verticals like grocery they could be entering >> uber over lyft, which implies you like the international part of the story, you like the non-ride sharing part of the story, what's the biggest driver in your view of the upside for lyft -- excuse me, upside for uber relative to lyft? >> i think it really comes down to post-pandemic, what's next, and mobility, it's getting back to prior levels of revenue and riders so the prior peak for lyft, for example, is 21 million active riders stalling out at about 19 million here one of the major things from the

pandemic that we do not think will be transitory is delivery we think delivery is going to have staying power in subscriptions is going to be a major driver, and the more verticals that are added to subscriptions, that's going to make the subscriptions that much more powerful. that's why with uber, with grocery coming or already here, with them acquiring drizzly, we think that's powerful, and then there's the advertising business you can throw on top of it dara has spoken about 1% to 2% of gross bookings could be a advertis advertising. and instacart has talked about a billion dollars in revenue for 2022 and amazon, 14%, their adv advertising revenue is 14% of their bookings it's a huge opportunity once you have that marketplace. >> while we're on your favorite stocks, bernie, uber at the top of your list, knrut think you also like peloton and have a $50 target on that stock

do you think -- >> i do. yeah, so i think in the word the way to describe today is certainty. so there was a lot of speculation in terms of m&a takeout, what was going to happen with the ceo, they hired mckinsey, what they were going to do with cost cutting, and we have a lot more certainty about that now you know, the cost cutting estimates they put out there this morning were enormous the revenue picture right now is really bleak, and the company has to move and transition from a hypergrowth company to one that is focused on profitability. and when you're talking about taking $800 million of cost out of the system, that's what they need to do to drive that change. >> did close up 25% today on that view. thank you for joining us >> thanks for having me. >> energy stocks have been soaring this year, but up next, fast money trader guy adami

reveals the nonenergy related commodity stock he's betting on right now. plus, the latest details on arrests in a case involving stolen cryptocurrency worth more than $4 billion. we'll be right back. what the world needs now... is people. people who see healthcare a little bit differently. where technology helps doctors provide more precise care... leading to faster, better outcomes

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estimates and lower than the prior quarter. that's pressuring the stock down almost 4%. chipotle moving the other way, up almost 8% after earnings. saw a beat, revenues coming line with expigitations the ceo telling us moments ago it's fortunate it has the pricing power andim anticipatesi will have to raise prices. he thinks he can, the brand is strong, and that stock up now 8% after hours despite the seasonal nature of burritos with a peak in the spring. news to me as well >> who knew? i would think burrito peak season would be some time in the winter when temperatures are lower because that's when you want to eat hardy food, not in the summer when you want to slim down and be light. >> who knew? >> whatever. we know that now which is interesting okay shares of mandiant moving lower despite posting better than expected earnings. the stock surged in the last hour of the trading session on a report that microsoft plans to acquire the firm

let's bring in guy adami hello, guy >> i am so geeked up i can't even begin to tell you sara eisen, you, i mean, you just talk about a burrito blowout. you know i love a burrito blowout. i don't know what they were talking about, that ain't seasonal that's year round, 24/7, 12 months a year. >> he was talking about the price elasticity and the ability to raise price further when he said some local restaurants charge 20%, 30% more than they do for a chicken burrito, which implies there's that sort of 20% to 30% increase on an $8 burrito. so that gets to the question, guy, 57, 58 forward pe do you pay that for chipotle >> listen, it's expensive. you know, i mean, the stock has gotten crushed over the last couple months, but it's having this big move in the after hours. you know why you pay it? because i think they figured out the digital game almost better

than anybody out there so although it is an expensive stock by any standard, put it up against mcdonald's, probably more than two times its valuation, but i really like cmg and i think you'll see a lot of analysts start to raise their numbers. that's my thought, but i'm partial, as you know i tell the audience what i eat it would be a chicken burrito, extra chicken, no beans, white rice, medium sour cream and beans. >> i know that hour well let's get to the reports that microsoft could be interested in buying mandiant. we have been covering mandiant since it was part of fire eye. what would a deal like this do for microsoft? >> well, think about it. it's a rounding error for them maybe an $8 billion deal, but it gets them nto the cyberspace we have talked about that space for the last couple years on cnbc's "fast money," which until this money appeared each night at 5:00 p.m. we're being usurps, which i don't know how to spell, by the olympics i think it makes a lot of sense. again, low risk, high reward

i don't think anybody has verified it, but where there's smoke there's fire if you look at other names in the space, z scale had a huge run, palo alto network it makes sense, it's microsoft flexing here they can do what they want when you're a $2.3 trillion company these bets, you know, if they don't work out, not a big deal, and if they do, it's an upside i love the name mandiant i know you think about barry manilow when you hear it, but that's probably for another show >> not actually what i was thinking i did want to bring up alcoa because i know you like this >> yeah, you did yeah, you did. >> alcoa up 10%. they have 220% in the last 12 months aluminum prices near 12-year highs. how long have you liked the stock and what do you do now >> the last time we were on together, i believe it was the fall this was a $49 stock-ish, when i was on with you and wilf you made be do a power pitch mel, you're familiar with the

power pitch. it was an offshoot of that for "closing bell. i think the fundmals line up in the environment we find ourselves in lines up for the resources trade, and alcoa is top of the list. look what's going on with aluminum prices. not just a lot of it anymore and see what jeff curry said the other day from goldman sachs, he's never seen a commodity cycle like this in his 30-year career although alcoa has had a trumenace run as you just outlined, i still think there is more room in the name to the upside >> for the record, neither sara or i thought of mandy. >> barry manilow >> 100% certain of that. >> i guarantee people watching the show -- false, you're wrong. i have to tell you, lisa is in the control room, was lol'ing, because she thought of him, and half your audience did as well by the way >> guy, good to see you. go curl, because that's what you

do during fm "fast money" in th olympics we curl. >> we all curl guy, thanks. it has been a wild week for the likes of meta and amazon meta down again today. up next, we'll take a technical look at the top tech names and what could be in store for the sector >> plus, during february, we're celebrating black history and featuring some of our cnbc financial adviser council members. here's lizeta braxton sharing what this time of year means for her. >> black history month means to me that opportunity to highlight and honor the contributions of black talent in the u.s. and globally as a black financial planner, i see black history being made every day. through the advancement of black households and living out their financial plan and living the life and legacy they deserve yog about the market and want to make the right moves fast... get decision tech from fidelity.

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meta continued its downward slide, finishing down 2% the stock is now down more than 30% since it reported results last week. joining us is the head of technical analysis how much damage has been done to this chart >> a lot, and i think it's

important to understand that the damage wasn't just last week this is a stock that peaked relative to the s&p in august of 2020 so we're talking about 18 months of underperformance that preceded last week's decline it speaks to the broader issue that faang as an asset class hasn't existed in two years. these stocks really began going in divergent positions all the way back in summer of 2020 when i look at a name like facebook, i recognize there are some long-term support in this $210, $220 range, but there's so much resistance on top of it any bounce, i think any rally, you would be well inclined to be a seller because there's going to be sellers on top of us, particularly for a stock that has continued to make relative lows over the last 18 months >> you mentioned summer of t2020 and that's about when amazon started to really underperform that's a chart that you actually loathe i'm not -- that's a word you use

yourself in relationship to this chart. >> those are our words and it is. and i just think it's somewhat ironic, we have been in what i described as one of the best consumer environments over the last 18 or 20 months and the most important consumer stock perhaps of our lifetimes has not done anything. no one has made a single dollar of performance in amazon since july of 2020 it's another name, right in this 3300, 3400 range, there is so much resistance. we have to imagine that there will be sellers on top of us but what i think is maybe most telling is despite how poor the stock has been over the last 20 months or so, 57 of 57 analysts who cover it still have a buy on it so i think the street has a long way to go in kind of coming around to the idea that this group of names or these types of stocks might be on the sidelines for a while when you go down like this, the amount of repair that is needed to fix the damage on a facebook or on an amazon is significant.

>> it's interesting because amazon unlike facebook actually had a pretty good quarter that was well received by the market. so chris, does that mean that you don't like the s&p right now, if facebook and amazon don't work >> so our call has been own the average stock that the risk to the market is at the top i think that's really a construction of a way i would encourage the viewers to look at is look at the equally weighted s&p breaking out relative to the qqq. the average issue improving relative to qqq, this is a very, very split take. we did work this morning, looking at all of the relative highs in financials, all the relative highs in energy, juxtaposed against the relative lows in consumer, in industrials. this is a very, very split tape. the average stock over the index is where you find performance. >> saw some highs today in the travel sector. marriott, expedia, amd thank you very much, chris good to talk to you. >> thank you with the techical take let's get back to deirdre now with new color on lyft's results

and the conference call that's been going on. what did you hear? >> yeah, sara, we saw shares plunge they were down nearly 10% as the new cfo started to lay out the outlook for the first quarter. the quarter we're in she said the impact that omicron has had on larger volumes, they're expecting rides to be down this quarter from last quarter. she said on a sequential basis, the outlook suggests a decline of 127 to 117 million in revenue versus the last quarter. and that would be 12% to 18% quarter over quarter it assumes a sequential headwind of approximately $65 million to adjusted ebitda versus q4. driven by that quarter over quarter revenue decline. so that hit shares hard. then they started to recover because she said they are still cautiously optimistic that they will be able to grow revenues over 2021 for the full year and remember, in 2021, they grew 36%. but that outlook has turned very cautious, so shares are down 7%.

and of course, it does raise the stakes for uber which will report tomorrow to see if they're seeing something different, if they were impacted by omicron or the drivers or riders separately in q4. >> whether they see that continuing, which i think comes as a little bit of a surprise, what we're hearing from companies is it should be very temporary. down 7%, as you mentioned, deirdre, thanks. >> up next, a big bitcoin bust u.s. authorities officially making an arrest in a major cryptocurrency scam. the details when "closing bell" mebacos ck (doorbell ringing) (bustling office sounds) - [announcer] eggzilaration, when the cheesiest guilty pleasure breakfast sandwich starts your day on just the right note. on time, lowest price, or we'll make it right. (chicka-chicka) grubhub.

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u.s. authorities making an arrest in an alleged conspiracy to launder billions of dollars in stolen cryptocurrency eamon javers here with the latest eamon. >> sara, the department of justice today said it recovered an astonishing $3.6 billion in stolen cryptocurrency, and arrested a married couple today for allegedly laundering some of those funds. officials said 34-year-old ilya lichtenstein and his wife, 31-year-old heather morgan were taken into custody without incident this morning in new york the initial theft came back in 2016, when an unknown hacker took 119,754 bitcoin from the

virtual currency change. today's indictment does not charge lichtenstein and morgan with hacking, however. and officials declined to say what they know about who stole the funds in the first place now, morgan refers to herself online as a serial entrepreneur and as a surrealist rapper in one of her videos online, she calls herself the crocodile of wall street. and guys, we're still waiting for the couple to make their initial court appearance in manhattan today. as soon as we have that, we're bring those details to you as well >> i wonder if this will be inspiration for another surreal rap or whatever she does, eamon. i guess we'll find out >> the videos are quite something, if you have a chance to check them out. all available online >> you're a good reporter. i knew you looked at them. thank you, eamon >> did my research >> mike, really interesting session. we got a lot of big earnings tomorrow, and lyft sets the bar for uber which is feeling the

pressure it's down 3% right now >> yeah, tough for them to really win back the benefit of the doubt, i think, at this stage. those two stocks interesting broad market stuff, too. keep pointing out the positives below the surface, the cyclical tone of leadership, the fact the markets withstood the big rise in bond yields that being said, it's really in this crazy noman's land, exactly in the middle of the january high and low in terms of the s&p 500. are we just waiting to get past that thursday cpi number and just as long as it's no longer shadowing the market, maybe we can release higher or is there genuine unease about the implications of it that's one of the things tomorrow we'll see if we just idle more or if the market says we like the ability to kind of play this cyclical reacceleration we might get. >> cpi expected on thursday to show a more than 7% increase from last year another new high as far as bond yields are concerned, we saw them move up

today, but nothing extreme it seems like the velocity is what gets traders' attention and makes people nervous we're hovering around the highest since 2019 but it's been slowly getting there >> slowly getting there, the fact european yields have lifted loosens up that leash that the u.s. yields are on, connected to it it's all been in lockstep, so it hasn't necessarily been something that seems very destabilizing just yet who knows if 2% is a reason. people are bearish on bonds right now, so if there's going to be a countertrend move that brings yields down, it might happen from levels like this >> it feels like it's good news if it's going up for the strong economy reason and not as much for the fed getting -- >> six months of the fed getting aggressive >> those should be hand in hand. tomorrow, also, we'll get disney results on this show after the bell be sure to tune in for an interview with disney ceo, bob

chapek that does it for closing bell today. another exciting day in the market, and this time it closed higher for the next two hours you can catch olympic curling that's followed by the news with shepard smith at 7:00 p.m. eastern time we'll see you then can he get it? he can five on the board for team usa the united states has won curling gold >> darkness blankets beijing, at least for another 45 minutes or so the beijing olympic tower, which opened in the summer of 2015, stands 846 feet tall, more than twice the height of the statue of liberty still a good 200 feet shorter than the eiffel tower in paris, the next olympic