though. >> no, it didn't right now that is not helping. courtney, thank you. that does it for "the exchange." everybody. "power lunch" picks things up right now. >> welcome to "power lunch," everybody. same great show, same great price, not 75.% higher today no nosiree, it's not. it 50, 50 for 50 we'll back about the coming wave of stock splits. cybersecurity power play to discuss the battle against

hackers, and his company's strong revenue growth. kelly? >> tyler, thank you. stocks are dropping on the higher rate concerns, especially after james bullard said he would support raising rates by a full percentage point by july. so recall that really happened before the pandemic, we've been able to dig our way back out 2.2. this moves the hotter than expected record that tyler alluded to it show the inflation surging year on year, the largest annual game in 40 year. that brings us to mr. liesman. traders are ramping up the odds. steve is here with a look at what the market is now pricing in steve?

>> those new comments from james bullard, ramping up expectations for increasing rates odds now, 66% for a 50-base point hike something the fed has not done since 2000. bullard says even consider as intermeeting move. he told bloomberg -- markets have for the moment moved forward their projections, now a 97% chance there will be three rate hikes by june, bringing the

funds rate, now a 52% probability of six, count them, six rate hikes by november that would -- all the aout to february previous ly. >> bullard said he could go either way sometimes bullard can lead the way, sometimes he can lead you astray if the market has it priced in, the fed could decide to takes that flexibility from the market, and deliver what the market expects kelly? >> yeah, you know, it's something that people will starred pondering, if bullard opens the door to an intermediate -- the fact he said we should move it, they added it in, like, a weekend if it was done for a particular reason, it should take it back quickly.

i think the fed might have made a mistake for hanging around too long there wasn't anything priced in thatted fed wouldn't -- you think it would do more to get back to where we were relative quickly before the pandemic. there are some stocks, i believe, that -- >> the next meeting is, what, six weeks away, five weeks away? >> yeah, five, call it i think it's the middle of march, let me double check that. march 16th, yes, sir. >> do you think that there's a possibility that the fed moves before that meeting? how big a possibility? >> so, bullard himself mentioned the possibility of an inter-meeting move i don't think so

the weird thing. i know you know this, but it still makes me laugh, they're still buying assets, tyler they're still winding down that qe, and they won't finish that until early march. >> thank you, steve, very much we'll be all over there. today's inflation numbers sending ripples through the bond market, as the ten-year yield crosses 2% rick santelli is tracking the action it's not just the ten-years, but the two-years, sirs. >> it's everything, it's across the globe. they're like tsunami waves in my opinion. today is an interesting today, because, as steve and many on cnbc have been pointing out, we can see what investors are thinking, because we can follow the charts here's what i mean look as an inter of the

two-year the bullard pop jumps out at you as well. that's super-significant look at a ten-year intraday, certainly you see the volatility, but the bullard pop sort of disappears it shows you that investors are paying very close attention to those areas of the yield curve, that are going to be responsive, and that's what steve is talking about. it's almost like market gu guidance. >> early august of 2019, but look at a 30-year bond it's nowhere really near those levels on the left side of the chart,'s we open it up from 2019 midsummer. the reason is there's still buying in that 30-year, toil interest in the long-dated

treasuries finally, fed funds here's an intraday of december 2022 look how they moved on not only inflation, but look at bullard, the minute he spoke, look at that drop. we are roughly building in, keep it simple, about 16 on basis points of tightening exactly how that delivered -- see, the problem i have with do a pre-meeting or emergency meeting hike, is there is no guidance bullard, i would like to give you a hug, i tolely great, but it's difficult to put forth. when you do emergency, everybody knows the emergency. when you do an intermeeting rate hike, it's hard to prepare the ma

market. >> rick, thank you very much news flash on shares of affirm, jumping as it seems like think accidentally released highlights of their earnings early. kate rooney is here with more. >> affirm appears to have tweeted out a preview of the earnings that tweet has since been deleted, but they say another great quarter is in the books. they talk about accelerating growth, leveraging tech, increasing transactions by 218%, active consumers up by 150%. this was a call to tune in at 2:00 p.m. pacific. the tweet has been taken down. this was toted out by the affirm

account. it appears to be accidentally put out there. boosting shares. >> maybe something misread 2:00 p.m. eastern and 2:00 p.m. pacific. >> it happens to me all the time >> kate, thank you. meantime, inflation has been a recurring theme for companies all season long. one thing is clear, you have you have to pricing power. obviously from, you know, across packaging, ingredients, labor, freight, you name it, it's pervasive and it's everywhere. our goal is to cover all those input costs with pricing and productivity we think we're in a very good shape to do that we do have a lot of pricing power. how that playing out is obviously the right question if we were to take no more pricing in 2022, we have about a

6% price increase, and we know, if we need to take more pricing, we have room to do it. to date we've seen no resistance from our customers. >> it's gotten worse since the last time we talked, and we are able to price. not all of it. what you saw is roughly half of it was volume, half of it was price. we have more price that will start to flow in throughout the rest of the fiscal year. >> there you go. what are some other stocks with pricing power? steve grasso is ceo of grasso -- what are a couple of your plays? >> we just hear from capri holding, cpri.

i can't imagine versace or jimmy choo lowering prices >> you've liked this name for a while. this is a vicinity indication for you. i really read about chanel handbags that are now high single-digits thousands of dollars, and there's no push back so outside of luxury, where do you see pricing power? >> if you look at pricing power as a whole think about sonos, that's another one with pricing power as well. think about, in the whole realm of restale, there's a scarcity vat for lux youry brands you have assistant try here, ralph lauren here, but the only one is cpri, but if you go out on a spectrum here, you have to think about who has pricing

power. then you get to the staples, right? or you buy the etf, the xlp. i get a yield and price performance. >> valentine's day is coming up, so i think versace and jimmy choo is a good play for you. i'm just thinking, looking out for you. you like the airlines too, i'm told >> look at what we heard yesterday. i wanted to take a flyer out on disney, because i femme like parks were going to surprise to the up side. i bought the stock and it popped after hours. think about what disney told us, though, tyler. people want to vacation, they want an experience they have to get on a plane, delta, luv, southwest, think about those names. those names are ripe for a pop

what else do they have to do rent a hotel room. if you look at marriott, hyatt, those stocks have broken out on a chart. you can covering this whole gambit of experiences, and i do like the airlines. disney told us and you have these experiential vacation, unfortunately, you need to jump on a plane to get there. >> where is the money coming from giving them the pricing power they need to keep up with inflation? where is it coming from? we all know that the people because the versace, jimmy choo doing it regardless of what they

are making they didn't the -- i think for the most part they're flush with cast if they got paid more, they most likely saved more. i don't think powell is a rho bod or going to be rho --, to rick's point, if they need more stimulus, we'll cross that bridge i think a lot of people didn't go out as much, so we banked money

we didn't go out as much steve grasso, great, i'll be waiting for the jimmy choos. thank you, sir. coming up, the ceo cyberart, despite record spending on security why one market veteran says those three things have the next -- and take a look at shares of affirm and toast is toast toast they're both moving up perfectldo, asy netot. (ted) after talking and texting for years, we got married...

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let's take your attention over to the dow, which is right at or near session louse that's a 1.4% decline. russian site selling stolen credit card numbers have been going off-line let's bring in eamon javers. eamon? >> kelly, it's a bit of a mystery, but an unprecedented crackdown on the russian criminal dark web. as many as five sites offering stolen credit card numbers for

sale on the dark web, that suddenly vanished, some of these posting good-bye messages, others simply disappearing they have uploaded more than 10 million stolen credit card numbers over the past 13 months or so. it's not clear why this is happening, but it may be the result of russian law enforcement pressure on so-called carding shops. this could mean a lot less of us are finding -- and messages are being posted by being feared the hard days have one writes one hacker and another says watch out for op sec i would leave my layers for a while, and another writes, it becomes scary. some in the cybersecurity world

sees this as a russian effort to offer cooperation with the united states. here's another ominous side, very deep inside the source code is a message, apparently from law enforcement. in russian, it reads, who's next back to you. thank you, eamon shares the cyberark jumping. why hacks have been on the rise and cybersecurity has grown, the stocks haven't kept up the hack etf down over the past 12 months, but cyberarck is up about 10% today. for a cnbc exclusive is cyberark ceo. welcome. walk us through the numbers, very nice growth, especially as

you transition to a subscription-only business. >> thanks for having me. the most important number, as we move to subscription business is 44% growth in our a.r.r. reaching 393 million, and we also are reaching a point where we will complete our transition earlier than we can. and we'll be a subscription company by the end of q2 this year. >> who are your biggest -- i don't want you to give propry tear information. >> i love talking about that and machines and access to enterprises. we have about 7,500 customers

around the world, to health care, you name it. >> where do you see the biggest threats coming from? where do you see them coming from and what areas of threat are growing fastest? >> i don't remember a more heightened, threatened environment. despite the crack down i mentioned earlier in the segment, actually it's an attacker's moment, where you have both nation states and criminal organizations really leverages the fact that organizations have become more distributed and the whole digit at economy what we're seeing with, of course, the remnants of the solar winds, there's becoming a mentality with enterprises, where it's very clear sow that's

why it's so important let me ask you about something that's been on my mind if that situation erupts, an invasion, and the west responds with sanctions, what would you expect russia to do on the cyberfront might they say, already, you're going to play with sayinging, we're going to come in and mess up your enterprises, your consumer economy >> it is would say even as -- the first time was cyber attack, and and it caused a lot of

damage sowe could have that that as part of the conflict, but there's definitely that risen where i would say elevation of cyberattacks i don't believe it's going to be an all in, that would be close to global war fare, but it could be an increase so clearly it's something you have thought about. it's your leaders that we are. >> the -- on which criminal organizations are just writing behind it or less at least enforcement we are really in the long game. we're all by -- and prevent the major attack, the takeover, where they can assume the

identity of their employees. >> if russia is crackingdown o the criminal elements, they could easily say we're not going to crack down so hard no thank you, sir, for your time today. we appreciate it >> thank you very much for having me. >> it's interesting about the links between geopolitics and cyber attacks. the nimble nasdaq, stocks are down today which names in the nasdaq 100 are most likely to jump higher in the coming weeks? plus a bridge too far, ford shutting down one of its plants as truck protesters block a key bridge we'll have the latest when ow lchrerns. look, serena williams... matrix... serena... matrix... serena... matrix... ♪ get your tv together with the best of live and on demand. introducing directv stream.

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♪ welcome back i'm rahel solomon. here is your cnbc news update this hour. white house records obtained by

the committee do not show calls to or from then president donald trump during the two hours -- investigators don't know if the gap is due altered record or donald trump's habit of using a cell phone. california has investigators responding to kipts found evidence that black workers were subjected to racial slurs, and discriminated against in job assignments, discipline, pay and promotion. tesla meantime calls the suit unfair and counter-productive with accusations that focus on events just years ago. the brooklyn nets reportedly have a deal that sends james harding to the philadelphia 76ers in exchange for the simmons. so the simmons saga come to go an end i think i can hear philly fans cheering i think we're all weighing in,

universally approving of the move maybe good for both teams. dom? we are hovering near session lows you can see here by the chart intraday we are hovering, again, near those session lows. but we also want a check on another company, data dog, which is surging today after the cybersecurity company reported better than expected earnings and revenues with the current quarter and fiscal year outlook coming in above expectations as well.

i'll send things back over to you. >> thank you, dominic. ubetter shares are lower, despite the company -- the ceo spoke with andrew ross sorkin just minutes ago at its investor day. >> guidance of 25 to 75 million for this quarter, and we beat it we're in the middle of a pandemic, you see so many companies have a tough time forecasting what the next quarter will be, let alone the next year when we put a target down like that, which is much higher than anyone else, it's a target we're quite confident are, and there are many roads we can take to that target. if some things go right, i feel quite good we can exceed that

target it's a good target to lay during a period of high uncertainty you know, as a team -- >> you can see the full interview with the ceo tomorrow. it is going to air on "squawk box," which as you probably know, begins at 6:00 a.m. eastern. up next, does a stock split bring investors together bank of america says other companies may follow suit. the analyst behand that call is the analyst behand that call is here to explain. leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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5. welcome back we'll dig into this coming wave of stock splits, but let's begin with bob pisani as we see stocks grapple with rates. >> it was about noon and i thought this thing is moving up and then mr. bullard from the st. louis federal reserve opened his mouth. since then, he was talking pretty acigarettesive.

interest rate sectors are getting hit the most yes, tech is down. bick temperature is down so everything is do you you 2 march, but 2% is a standard mode obviously homebuilder, which have been rallies earlier in the week, interest rate-sensitive, they're also to the down side, then utilities, of course, and utilities have been rallying for the past few weeks, they compete for yields they've been rallying, also selling off rather heavily i think nobody expected inflation to peak in january what they were hoping for was a bit of at least month-over-month improvement obviously they were

obviously wrong today. >> the yield on the two-year topping 1.55%. the 30 year, and finally, check out the yield curve. this is going to be the topic for the next couple months twos, tens, under 50 basis points today, you can see especially after the comments from bullard in the meantime, let's check on oil. everything is going in the wrong direction. pippa stevens has the close for us s seesaws today. prices uniformed follows the cpi reading, as traders looked to crude, but the ongoing iran

talks, now the wti around 90, this would have previously meant producers, and u.s. shale is not going to respond to this time, among other things, the firm noted that executive compensation is now increasingly tied to free cash flow return and esg. the firm said the average weighting of production is down from 15% in 2019 to 8% last year ultimately they said this will limit levels to well best low 2019 a check on prices. wti is up 0.1%, brent crew down a third of a percent, and take a look at nat gas, down about 1.25%. >> thank you very much, pippa stevens. a new report on stock splits shows they tend to boost returns, according to bank of america, which says alphabet's announcement could usher in a

wave of others jared woodard is the annualest behind this report what are we are talking about? >> the returns we saw were pretty stunning. we saw on average after the company announced a stock split, it tended to -- so average stock gained 25% one year after announcement, that compares to a % average gain those positive returns they got performance was try judiciary net time three months later, six months later, one year i mean, that is huge outperformance. my understanding in the past, i guess, was they tended november to have much of an effect. i was wrong. that includes some pretty, you know, incredible bull markets

over that range. more recently supplies have become a little more scarce, which is why i think the story is so interest today you're starting to see a change i think in the management of some of these companies. as returns get more challenged, as tech stoles that mac were performing incredibly well suddenly see choppier, you know, more volatile markets. bob just mentioned megatech stocks, well, that might light a fire, might encountry some to be more shareholder friendly. when you think about the things managements might do -- you may see more stock splits come in the future we look at -- with prices above $500 a share today that accounts for about

$6.6 trillion in market cap. so if it becomes a waves a more investors are drawn into the markets? >> there are trading platforms to buy fractions of shares today, correct >> i won't you how that as contributed to the relative scarcity of stock splits. >> to your point, things like etfs have attracted a lot of attention. >> i think that you still find very limited adoption with some of these alternative ways for accessing the markets. what they do know is the price of the shares they're buying, and individuals have come back and forth.

it was number two only to market makers and high-frequently makes. so they tend to look as some of the -- if you do see managements decide they need to be more friendly, our thought is that splits are an easy way to do that >> jared, thank you very much. a very clear explanation we appreciate it. after the break, a truck blockade forcing ford to close one of its key plants when vehicles and auto parts are in short supply that story is ne xt at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

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u.s. auto industry caught in the middle of a protest with truckers in ontario. they're blocking the flow of auto parts and other goods phil lebeau has more on how this is hurting the u.s. auto makers.

really any auto maker that has production here in the u.s. as well as in canada, which is all of your major ones let's go down to some of the impacts. we're also see some of that today. gm cut its shift it he lansing michigan plants. toyota says production in kentucky has been impacted this is likely going to be seen through now and monday if there's no resolution. ford has an engine plant in windsor, the ford windsor plant that is resumed reduction. they shut down some shifts yesterday. they're at full capacity now in some cases alternate routes is possible. in other case, it's it's not

we're talking about 10% to 20% of the industry's components and parts coming down here to the u.s. so take a look at the other automakers we mentioned. there's other things weighs on these stocks, and we have talked about that the key thing to keep in mind, if this continues into tomorrow or over the weekend, then you'll start to know more dramatic cuts in shifts. it may not be they completely shift down, our she'll shut down a shift here or there. it's not easy at this point. >> are there easy way foss truckers or supplies to move around the blockage of that windsor bridge >> no. >> in a word, no >> no. there's some

if you have an engine you have to get to the u.s., you're pretty limited you have a small component perhaps you can do air shipments, then you can work your way around it, but in this industry, not really they're locked in, you know, with these logistic chains that having set up. >> thank you very much, phil lebeau. ports in the storm for your port for i don't one market has three names that could withstand market churn stocks are off session lowing, we're down 412 on the dow, s&p 500 down 61, nasdaq done 202 qualcomm, adobe, marvell se omof the biggest laggards in the nasdaq today we're back in a moment (ted) after talking and texting for years, we got married...

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talking are falling on higher rate concerns and hotter than expected inflation report our next guest says signs of change are coming and companies with flexibility, durability, predictability, all of these, could provide leadership joining us now is kevin caron, senior portfolio manager with washington crossing advisers great to see you talk us through your hypothesis here, what was it,

predictability, flexibility, durability i can't even remember. >> i like your lead-in, yeah as we come into the year, we're seeing some change in the market, in the macro data. we pulished a piece called how things are changing on washingtonadvisers.com but the essence is we're seeing a more mixed churn underneath the market we're starting to see some of the signs of economic growth looking fairly peaky, so the pmis, for example, or investment as evidenced by capital goods orders, those things look strong, but they seem positioned to roll over of course, we have policy supports that are looking to be pulled away as a result of rising inflation and rising debt. so all of that to us signals that things are starting to change and in that kind of environment, you want to own companies with very strong balance sheets, very low debt, very consistent cash flows, very profitable assets so you can have a flexible

portfolio, so if and when the chips are ever down, we're able to weather that storm fairly well >> speaking of chips, as our producer pointed out, your three stocks all have chips in them, potato, chocolate, and silicon hershey, intel, and pepsi. let's start with intel, which is a kind of unloved stock. >> yeah, very much intel, as the dominant leader of producing semi-conductors, chips for computers, they are at a critical stage in their evolution where they're making some very, very large investments in the heartland of america. to produce semi-conductor chips at scale in the united states. and the way that intel is typically most successful is being an innovation leader but also being the producer with the lowest marginal cost and on the other side of this our bet would be that intel will again be successful at scaling

up as they have in the past, with these investments and on the other side, you could have a very formidable competitor yes, it's unloved but it's a company that we think is going to be successful on the other side of the chip shortage. >> so the reports of its demise greatly exaggerated. it is not -- time has not passed it by. quick thoughts on hershey chocolate chips and pepsi potato chips. >> both of them very, very consistent we think ultimately they have some pricing -- there's cost issues in the present time, as everybody is confronted with cost issues. i think these companies are getting out ahead of that, having the right products in the right places obviously, we're thinking that as we go forward, they're going to be able to pass along a lot of the cost increases that they're currently experiencing, like everybody else. and in the end, they both have a very, very consistent business,

and they're growing their dividend nicely with an excellent balance sheet, both of them >> kevin, thank you very much. washington crossing advisers, thanks rks.eeping a close eye on the maet we'll have more when we come back in a moment don't go anywhere.

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and confirming some of what we saw in that tweet. let's start with revenue better than expected, $361 million versus the $328 million that analysts were expecting that came in higher than expected the loss, though, 57 cents per share. we're not comparing that to estimates quite yet. it looks like the third quarter revenue outlook roughly in line with estimates, full year revenue estimates, and the outlook also better than expected also looks like raising their outlook for the full year 2022 their entire merchant base now at 168,000 the was up from about 100,000 last year. active consumers up by 150%. we're looking through the release and we'll bring you any highlights as we get those back to you. >> thank you very much, kate rooney, with the final numbers on affirm. there you see it going down by 25%. on those numbers look at that, kelly. >> what a story that has been. by the way, it wasn't a 2:00

p.m. time mix-up, it came out in the 1:15 eastern timeframe let's get to dom been a lot of talk about buying the dip in tech. where should we be looking >> or buying the dip in affirm what a dip there let's talk a little bit about the positivity that goes with down markets there are possibly opportunities. we wanted to look at nasdaq 100 stocks, the biggest ones out there, because the nasdaq is the epicenter of a lot of the volatility we looked at the 25 biggest market caps in the nasdaq 100 and found what the motpotential upside to analyst targets are. these are the top five, paypal could have 53% potential upside to analyst targets as it stands right now. facebook/meta, 42% upside, nvidia has 29% upside, amazon, possibly 28%, and t-mobile, 28% as well. if you look at the biggest names in the nasdaq and if analysts are right, that's the big

caveat, those could be the biggest. >> we average their price targets and take their current price. >> take the mean and look at the current price. >> hopefully they're not as off base as the inflation forecasters have been. >> forecasting is a tough game these days >> for the past year or so dom, thank you >> thanks for watching "power lunch. >> "closing bell" starts right now. >> welcome to "closing bell. i'm melissa lee along with mike santoli. sara and wilfred have the day off. hawkish comments from jim bullard sending the market lower. we're sitting close to the lows of the session let's look at what's driving the action, mike >> yeah, as you mentioned there, st. louis fed president jim bullard said he now favors a full percentage point of rate increases by july 1st. the fastest pace of inflation since 1982 treasury yields spiked higher on that news with the ten-year yiel