it trades at nine times earnings >> nice. and john, before your final trade, the viewer jessie said you combine the two, enter piano man. >> i like it jessie for the win we have palo alto because of unusual activity, end of the year earnings. i'm writing up side calls against it today >> okay. all right. thanks, everybody. "the exchange" begins now. >> thank you very much hi, everybody. i'm kelly evans. ahead this hour, stocks gave up their early gains as ukraine is suffering a cyber attack we climbed into positive territory and we're trying to failing to stay there. the s&p is 1% off the january intraday lows. are those lows safely in or not? >> plus as more sanctions get issued, russia will do one thing that the west can and should prepare for. that's according to one of our next guests.

we'll talk about what it is and what makes it so dangerous and china head winds for bubba, post questions for moderna we'll tackle the names in earnings exchange today. let's start with the state of play here. dom with the markets >> i cannot wait to get out and do stuff later this year i have pent up demand. so that's probably the reason why i believe those companies may or may not do well anyway, the markets overall are in red territory, because kelly pointed out before, we saw gains earlier in the session but again, the momentum has come out and we did test -- try to test some of the lows we saw yesterday with regard to the s&p 500. right now the dow industrials down one quarter of one percent. 74 to 75 points. s&p 5004284. off one-half of one percent. the nasdaq composite continues to be a focal point for the out and underperformance it's off about three quarters of one percent. 13,277 the last trade. for the s&p, this goes back to

the correction phase where we're 10% to 11% below record highs. the nasdaq 100, roughly about 18% below the record keep that in mind. the outperformers of the day, far and away, energy, maybe not shocking there wti crude has been just about flat on the day. it seemed a wide range in trading so far same with ice brent crude. 91.99 for u.s. based crude chevron and devon among exploration moving higher. and the etfs that track them are up the worst performing stock in the s&p 500 is a retailer. but it's not luxury. it's off price we're talking tjx companies up 4 .5%. this is the parent company of tjx. off priced retail. those stocks have been a huge focus for the return shopping phase, but tjx reported earnings and revenues shy of

expectations the current quarter guidance was below some analyst' consensus and the company suffered because of squeezing profit margins, they're paying for more freight cost and label they can't keep stuff on the shelves because of supply chain. tjx is one of the stocks today that's catching a lot of attention as the worst performer in the s&p on earnings this morning. back over to you >> all right dom, thanks. stocks have been broadly sliding deeper into correction territory as the russia/ukraine market returns to rattle are aheaded back there let's ask charlie, vice chairman of aerial investments. i know you love being nailed down on day today moves, but what do you make of the market strength and the kind of trading you anticipate in the coming months >> yeah. i think the market is looking to history and saying that international crisis, iran problems, libya problems, syria,

whatever, the market has been able to rise through them. and the market is hoping that this is going to be temporary. obviously if everybody calms down and russia ends up taking control of two eastern provinces of the ukraine, that won't economically have that big an impact that is what the market is hoping i hope the market is right i'm not sure it is but that is why the market is resilient. >> would you change your strategies at all if we go back below the lows or if we hold them you know, does that make a difference to you? >> you know, it's important when we talk about the lows and the market we have to just strange market right now with the s&p 500 still being dominated by large cap tech stocks which can perform very differently i mean, this is -- our value stocks which we talk about all the time, are killing these tech stocks this year and so i'm not overly concerned about the s&p being down 10%, because my stocks are not down 10%, and my stocks i don't think

are going down 10% but if i owned a lot of no earnings, high growth, high fult pl stocks, i think we can go a lot lower. >> what about viacom cbs >> you always bring this up. it's been painful. that is a name that we still think as a great library we think it has a good year coming up. paramount plus is growing. but the last earnings report they indicated a desire or willingness to spend billions of tlars on new programming that's always tough. it's not going to generate the kind of cash we hoped. i think it's cheap here, but we never love when a company changes its strategy >> sure, and i think again, i point that one out just to kind of -- the one that doesn't make your point but the rest, for the value versus tech trade, i think people are trying to figure out if that's worth chasing or if the market is worth chasing. we're chasing head winds like inflation. that can be a discouraging

thought, even for companies that might have pricing power it makes people feel maybe there's no alternalternative, be don't feel great about holding onto these names >> i'm not saying the overall stock market can't go down inflation causes higher interest rates and highest interest rates tend to punish growth stocks which are overweighted in the s&p 500. i'm not trying to paint a picture that the broad market can't go down. i think value stocks that trade at -- goldman sachs at 1.3 times book there are lots of more -- one which makes electricic car trains trading at nine times earnings i don't want to deny the point that higher interest rates are not great for stocks >> should people be picking through the rubble of the tech stocks you know, has that bubble popped past tense, or is it still popping?

>> it is absolutely still popping. and has a long way to go in these companies that aren't making any money i mean, to me there are two areas of the market that are really overpriced. and that is still bonds. which have a long way down to go in value and then no earnings tech stocks the late stage venture world, there are names of companies that would have done rounds of financing at $300 million, $400 million valuations that are doing valuations at $2 billion that area still has a long way to go down there are a lot of small cap nasdaq stocks making no money. there's no bottom there. those names can go down a lot from here. >> and finally, what about the megacap names which have seen volatility befitting their smaller colleagues at this point, but are often looked to literally as value names, as almost technology staples. >> yeah. so the name that apple is the name that comes up the most on this warren buffett owns it

my kids yell at me for missing it as a stock. it clearly you can make the argument that apple is a value stock. i think it's a lot hard ter to make that argument for tesla at its valuations there are smaller names i don't want to call out that have never made money and are trading at $500 billion valuations. so there's still a lot of froth in the growth world. >> all right fair enough. a warning and also places to look for opportunity this year charlie, great to have you on. thank you so much for your time. >> thank you let's turn to rick santelli for the results of the five-year auction. we heard what charlie thought about bond yields. let's get to rick with the numbers. >> it went over quite well, actually it's 53 billion five-year notes. 1.88% at the auction it just tailed the smidge. it was around 1.882. in the when issued market. but that demotion or that degrade to the grade is small

compared to the other big positives. we see the indirect bidders most associated with foreign buyers was the second best since september of 2017. last auction was the best. so there's a recent trend of foreigners really stepping up to the plate. that category that captured my imagine gags was that only 13 .8% was leftovers for the dealers to take down that's the smallest amount in my 20-year database and it speaks volumes that even though yields are up today, even though yields were up yesterday, when stocks are down and geo politics is running hot, hot, hot, you can still find plenty of buyers at the right price in these auctions back to you. >> well-said, rick thank you, rick santelli oil, gold, palladium all holding steady the rsx has fallen below $20 to

the lowest level in 16 months as tensions rise. kayla is at the white house with the latest this hour >> reporter: ukraine is expected to enter a state of emergency that would see document checks, gathering bans, and curfews for the citizens this as several ukrainian government websites have suffered a new series of cyber attacks which the white house is now calling consistent with the type of activity russia would carry out in a bid to destabilize ukraine. the world is awaiting russia's next move now that the entrants into ukraine's breakaway regions has been met with sanctions from the west on the sanctions a senior administration official ackno acknowledging don't pack the entire punch saying this is the beginning of an invasion and this is the beginning of the u.s. response. if putin escalates further, we will escalate further using both financial sanctions and export controls the u.s. is expected to soon unveil sanctions on the parent

company of the nord stream 2 pipeline delivering a final blow to the pipeline that would hav doubled the amount of gas flowing from russia to germany and as these measures are unveiled, there is a kleve forming among global governments. en switzerland is working to ensure the country is not used as a work around for individuals or companies targeted by the sanctions. china's foreign ministry asked how that country is working to alleviate tensions in ukraine. called the u.s. irresponsible and immoral culprit of the tensions >> kayla, thank you for now. we appreciate it as russia awaits the next move, they -- changing public opinion across the region. for now i'm joined by the senior intelligence analyst at the sue found group. molly, what's the expectation? we've seen some of the cyber attacks in ukraine already today. >> thanks for having me, kelly

yeah the cyber attacks and as you mentioned, the utilizing of disinformation campaigns by russia are all part of what is commonly referred to as phase zero of any type of invasion from russia. and this really laying the groundwork for that to be followed by any military or kinetic action . >> if that's phase zero, then how many phases are there and what does the next one look like >> well, as we heard from the previous reporting, that there has now been sanctions imposed by the biden administration in close coordination with our western allies in the uk and the european union and now seeing whether putin will escalate or deescalate. the biden administration made it very clear that this is just the beginning. and i think an important point to note here is that these sanctions were closely coordinated with our allies.

this is showing western resolve and western coordination and commitment to deterring russia to raise the cost for russia with these sanctions and this is not only closely watched by russia and the kremlin and putin, but also strategiced a ver tears -- strategic adversaries like china >> senior defense officials said russia is as ready as they can be they have 80% and forward positions ready to go. they have brought in nearly 100% of all the forces we anticipated he would need for a large scale invasion ten landing ships in the black sea with troops on board everything ready for a large scale invasion, and the belief continues to be that that is his goal so it doesn't sound like sanctions are doing much to deter the next step here >> well, the biden administration has been strategic and smart in that they didn't go full out on all the sanction options available but they are slowly raising the cost now, again, we can evaluate the

effectiveness of sanctions but the point is that this will be costly for russia in the long term but also i think it's very important to note that actually, there are repercussions for the sanctions on a western market, too. there will be long-term economic effects that may impact western companies. but also in the short-term, both the uk and the u.s. have gone out and said that private sector companies in the west may be increasingly targeted by cyber attacks. so this is the moment where western private companies and private sector should really ready their cyber defense capabilities against russian attacks. that's very important to note. >> absolutely. critical like, to your point, i guess just a final question on nord stream 2 how vital is that pipeline to russia, and do you think that it is at this point a nonstarter? >> well, nord stream 2 has been

a contentious point in rallying european allies specifically germany to deter russia. and it was heartening to see that the chancellor of germany put it on hold, and you know, said this is not happening now, that -- but that pushes china closer to its dependence on china and this is where we're seeing the long-term effects of the conflict in eastern ukraine in the eastern europe, and ukraine specifically is going to have ripple effects in other strategic competitions that the u.s. has with, for example, china. so the reliance on exporting natural gas to europe has now been shifted into this massive gas deal that was signed between china, russia on the sidelines of the olympics. >> great point and, again, just underscores the different relationships involved here as we move through the phases you've outlined thank you for joining me today >> thank you >> mollie.

moderna riding a three-month losing strike, and live nation in jeopardy of breaking a six quarter winning streak we'll break down the action and the results in earnings exchange we'll speak about the brewers next quarter and the breakthrough it made for the first time in a decade it's also analyst day for the industrial giant laying out the road ahead for the adoption of hydrogen energy. we'll speak to the ceo about that and their big bet on manufacturing. we're back in a moment thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support.

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welcome back, everybody. let's get the view from a ceo about this crazy environment we're living through molson coors reported top line growth for the first time in a de decade the stock is up more than 5% today. for more i'm joined by the beverage company's ceo gavin, it's great to see you again. >> thanks for having me. >> i know i should probably get a comment about the quarter, but i'm more interested in what you see coming down the pike this year what's happening with price pressures? are you going to raise top line enough to offset that? >> thank you for having me on.

2022, issued guidance that we're going to grow top line and bottom line. that's the first time we've done that in quite some time. and certainly we are experiencing cost inflation. at the same time, our business is fundamentally sound as it's been since before the rev revitalizing trend our grand portfolio is in very good shape both grew top line last year and we are very excited about how those brands are positioned at the moment. our move into the emerging growth space is ahead of our plan we put a goal out there to get to a billion dollars by the end of 2023 and we're ahead of that plan and then above premium with settlers and blue moon, strong as well. so they will certainly help our mixed profile. so not only will we get frontline pricing but have strong mixed and the car savings program we put in place many years ago will go somewhere to

offsetting the inflation pressures we're expecting. >> is beer back or your beers back let me quote from mkm with a buy rating on your stock they say miller and coors are outperforming -- and the innovation you mentioned like blue moon sky >> that's correct. yes. we are outperforming from a premium point of view, and we have been outperforming bud light for years and years. it is, actually, accelerating. our craft company that houses our craft breweries. summer shorthandy is already starting to take off in southern parts of the country down south, it's taking off quite nicely so yes, our portfolio is sound at the moment. >> tell me about -- how difficult of an environment is this as a ceo? while you do have some tail winds working in your favor, have you ever seen anything like this having to pivot from supply

chain sourcing problems now to the price pressures you're probably experiencing? >> well, it's certainly the toughest it's been for a while i did live through some of the high commodity prices in the early 2000s, particularly alum n -- aluminum we have spent the last two years making sure we do everything we can to make our supply chain as robust as it it can, and we've increased our inventories by a substantial amount we're not expecting any -- from a cost inflation point of view, we put in place a robust hedging program many years ago it's designed to take some of the volatility out of pricing, and we are going to reap the benefits of that in 2022 >> wow so you do have hedging which is helping you right now. i guess my final question is how much more are we going to be paying for miller and coors and your products this year? >> well, certainly our price increases are lower than the headline inflation that you've

seen, quite a bit lower, actually, and it varies by brand and pack and market, but yes, we will be taking some price this year >> a couple percentage points or 5% to 10%? >> no, we're talking 3% to 5% range. >> all right well, i will keep my eyes out for that thank you for your time. it's great to have you >> thanks. still ahead with three weeks to go until the big fed meeting next month where they're expecting to raise rates, we'll look at whether a half point hike is in play. we

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welcome back to "the exchange". we've seen the dow up and down and now we're down half a percent. nasdaq down about 1.2 %. here are the movers. the sports betting stocks soaring. now draft kings which is up almost 10% today is about 20% higher in just two weeks the stock also on pace for the best day since march of 2021 let's turn to virgin galactic, higher on a smaller than expected loss. the shares up 6.5% they expect commercial passenger flight service by the end of the year tesla lower today. and having a rough month down about 15% that would be the worst month since march of 2020. and it's tracking for its third straight monthly decline which would be the longest losing streak since may of 2019 tesla down about 4.7% n. it's below $800 a share crypto bouncing back with

bitcoin around the 37,000 leve look at rack space we mentioned the stock going into the break down 16% on weaker than expected guidance and a couple downgrades today. they have deceleration and core revenue growth profit margin uncertainty. two of the big head winds. now a cnbc update. >> here's what's happening at this hour. the only officer charged for the involvement in the botched police raid that killed breonna taylor is standing trial a former officer is charged for shooting into the home of neighbors. in opening statements prosecutors told jurors this is not about the decisions that led to the raid, but it is about firing recklessly into taylor's apartment. ford is recalling more than 330,000 mustangs the recall covers some cars

through the 2015 to 2017 models. and across england, heavy rainfall flooded around 400 homes. some areas have been evacuated and more rain is expected later this week. on the news tonight, russia's financial shield will its reserves be enough to blunt financial sanctions from the west that's tonight at 7:00 eastern >> thank you so much still ahead, alibaba down 50%. it's set to report the slowest growth quarter ever. moderna off 72% and there's questions about what's in the pipeline post covid. then live nation only off 9% from the highs with pent up demand for concerts taking center stage we have the action, the story, and the trade on all three names next in earnings exchange.

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welcome back it's time for another edition of

earnings exchange. three names getting set to report alibaba reporting before the bell tomorrow morning. down more than 50% over the past year the street expecting the lowest year on year growth since listing in 2014. here with the story on alibaba is dom and a cnbc contributor. dom, let's start with you. >> so i mean to your point, i'll give you the numbers it's probably a good idea to get an idea of expectations. 16.31 per share, that's about $2.57 u.s. dollars per share the revenues are expected to be about roughly $39 billion. that's likely to show a string of profit declines for alibaba the elephant in the room is probably the biggest elephant

you can have that is the chinese regulators/chinese government/chinese communist party. the country has been targeting its megatech and megamedia companies for some time now. about their influence, their power over key parts of society, their financial dealings and everything to that end now, bubba has not been immuned to the souring sentiment would you believe it if i told you u.s. listed shares of alibaba have posted down days in each of the last nine quarterly earnings reports stays that's a long losing streak. and the options market to your point is estimating around an 8 % swing in the stock up or down this time around so this is maybe not so much about the numbers, but i don't know what they can say that can maybe dissuade investors from wanting to see the chinese government is around and still going to be a problem. >> it's interesting to watch charlie munger involved in the stock and you think maybe that itself would change the sentiment around it, but so far it trades heavy. >> it does and -- but i cannot say it's

just alibaba we both know it's pretty much every chinese tech firm that you can possibly think about there it could be tencent or j.d. or see in a you name it. and the chinese government is going to have a heavy hand in all of it. to your point, i don't know what any of these companies can say do they say we've met with regulators and have an understanding? maybe that would change sentiment. it's unlikely that's going to happen any time soon >> what's the trade here >> i think the trade for us has been to hold the small allocation we have alibaba was a big winner during the height of the pandemic especially when you look at the political regulatory framework overseas, that's the big reason why the allegation has not increased. and won't increase for some time i think we're seeing growth slow especially on the bottom line. that's obviously concerning. but the company is obviously one of the best in the market. we talk about e-commerce and their cloud platform, but just

for now, for us, we're looking at the framework, it's an opaque situation. we can't get a certain read. we're not going to increase allegations to alibaba at this time >> you're not cutting it and running, but you're not loading up either. maybe this quarter will start to change sen sentiment, maybe not. let's change to moderna. down 45% this year 70% off the highs. a lot of disappointed investors. a lot of head winds from declining covid cases. and executives including the ceo have been selling off shares meg is here with the details for us meg? >> well, of course the number one, number two, number three thing everybody is going to be talking about tomorrow for moderna is the future of the covid vaccine, how the company sees that playing out through the year and beyond. does this become an annual vaccine for everybody like the flu vaccine, for example so that will be number one to be listening for. second, of course, is what else is happening at moderna.

the pandemic has validated the mrna approach to vaccines. so flu and rsv are the next two respiratory viruses we've been hearing about from moderna we've been hearing recent updates. a respiratory virus affects both young children very badly and older people so this is a trial in older folks. listening for updates on those moderna talked about combining through, rsv, and covid in one shot finally, what does the rest of the pipeline look like moving beyond respiratory virus vaccines into treatment areas for things like cancer listening for updates on that on the call theed in with moderna is what does it look like after the pandemic so every time we get a chance to hear management talk about that, that's what people listen for. >> my kids have had rsv. it's scary i don't remember it being around when i was a kid, but now it's

common investors seem to be saying they're skeptical about the prognosis for something as significant as covid to be following in their pipeline. what would you do with the stock here >> yeah. exactly right. i think -- we haven't owned it outright more through etf as far as our health care exposure i wouldn't buy now it's mentioned we're looking for a product pipeline post covid. with the final stages more than likely of the pandemic which is a great thing. obviously for the health of our world, but standpoint moderna which put a lot of k379ation pulled forward for the covid vaccine. now we're trying to fget a sens of what it's like post covid investors are uncertain of the product pipeline i think it's pest to look at the value of how far it could drop before it's more effective it may have a beating, a little bit more of a beating to go further. >> it's down 5% today. this has been a tough one. meg, thank you

live nation rounds things out for us they report after the bell tonight. the stock is down only about 2 % this year which is some good outperformance it was up 62% last year as people anticipated the reopening. julia has got the story on this one. julia? >> well, the key thing for live nation is the outlook. and this expectation of massive pent up demand among people who want to go back to concerts and maybe want to see more concerts than they used to prepandemic. and also this idea of a backlog of supplies. so many artists who delayed their tours. looking at the actual numbers, the company's revenues expected to grow 764% over $2 billion, and the company's losses expect to decline from over $2 in loss per share to $0.54 in loss per share this quarter now, there are a couple other things we're watching. one is commentary on pricing, how much ticket prices have increased and also how much more

are people spending when they are at those venues? are they spending much more because they're out and about for the first time in a while? and another thing i'm curious about is any mention of block chain or nft, different new web three things that live nation is looking at as it gets more people back into concerts this year >> yeah. and even though it's been a good performer, you have shorts like jim out there saying it's way overvalued >> i don't think it's overvalued this is a reopening play i wish i was in and i still think there's room for live nation to run i think there's a couple big catalysts. if you look at people getting more comfortable being outside, that's big, and also increase in consumer sentiment and discretionary sentiment. that is still strong demand has increased as live nation mentioned their pricing was increased and doubled from quarter's prior because demand is there. i think this is a stock that has more room to run there's a good strangle hold on the partnerships in different areas of artists on different

platforms. i think this is a great play if investors aren't in the stock already. >> but you're not in the stock if others should be in it, why not get in it yourself >> that's one thing our allocation hasn't been toward it we are looking to get into the stock. we're looking at the run it's had and if there's pullbacks especially after earnings. this is something where we would allocate capital to. >> live nation down about 1% it's been a relative stalwart lately thank you. still ahead, we're exactly three weeks away from the next fed decision where they're expected to kick off a tightening cycle that could be longer and stronger than anything we've seen in the last decade and later cummins is pushing its way to the cutting edge saying hydrogen is the next big thing. and let's look at stocks right now as the indices head toward session lows across the board. the nasdaq remains the worst

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welcome back, everybody. calls for the fed to curb inflation are growing louder as some economists warn they're behind the curve minutes from interest rates meetings show a vote to hike by a quarter point. they were overruled. my next guest says the fed has a lot to do especially what he calls a terribly misguided approach to policy last year joining me is the chief u.s. economist at ufc it's great to see you again. hindsight is 20/20 it sounds like you're a believer they should have started tightening last year what should the fed do now >> i don't think we need to relitigate the past. we've been saying the fed needed

to do something last year. here we are this year. i think while transitory was not the right word last year, and while i think that it's great that powell keeps saying they want to be humble this year, i think humble was actually necessary last year. i think this year they need patience because i think there are a lot of risks on the horizon right now. i don't think that the backdrop actually needs the fed to get aggressive here. so i know there's a lot of calls out there for the fed to sort of go 50 here and there certainly raise rates every meeting over the balance of this year we think the fed should be much more tempered in their approach right now given some of the risks out there. and so let's just -- what does tempered mean? we think they should go 25 basis points in march and four times over the year, once a quarter. what are the risks i think the risks are we have a lower end consumer that has basically tapped out most of the sort of the excess liquidity that they had in place

we think that inflation is going to start the process of slowing down this year which we think will take the pressure off the fed. there's all these sort of transition things that are happening that i don't think the backdrop warrants an aggressive fed at this point. >> to me what doesn't make sense is the idea they should have started sooner but go it slow right now. it feels like it should be one or the other either they're behind the curve and need to catch up or they're not because inflation is peeking and lower-end consumers are in bad shape and all that >> it's a great question here's how you square that circle i think it's straightforward i think what happened last year, and what we're seeing as a result of that now is that inflation expectations have really lifted in a pretty significant way. right? this whole idea of not to worry about inflation, the reality was people were enduring inflation there. the view is i'd be much more sympathetic a fed that actually

started the process last year, all in the name of keeping inflation expectations much more anchored than they would have been and that's why i say i think last year would have been a much better approach 20 to the starting >> we also have had this question about what the inflation picture is going to be it's the thing that determines how many hikes and the rest of it i'm seeing more of the street turn hawkish goldman's notes really sound the alarm about this becoming a problem that is broad, that is going to have wage gains and wage pressures for quite some time, and that the fed kind of shouldn't expect inflation to come down to target in the next 12 months. do you differ with that? >> i do. i think what we need to keep in mind is we're going to transition this year from good spending to services spending. and one of the things that -- one of the key things that's really driven inflation materially higher has been goods spending we're going to transition. and let's be clear we normally spend a lot more on

services than we do on goods for all the obvious reasons, the pandemic sort of punk chated this idea. we spent a lot more on goods than services. as the sort of -- we sort of get back to sort of more -- some semblance of normal. what's going to happen is the transition to going to take place. you're going to go from goods to services spending. there's a mountain of inventories in the goods space a lot of people have been highlighting home depot over the course of the last 24 hours. they highlighted a big lifted inventories. but if you look at the economic data, there's been a mountain of retail inventories for the last couple months. and it's something we've been highlighting if people shift from goods to services spending all in the context of a lot of inventory sitting out there, you can see goods prices that fall abruptly. i think much more abruptly than people appreciate and i think that's going to be the thing that really sort of allows inflation to slow down as the year progresses. >> very interesting argument

tom, great to hear from you today. we appreciate it hope to check back in soon >> thanks, kelly >> tom with rbc capital market up next, despite today's gains on strong earnings and a guidance hike, this stock could use improvement. it's down nearly 16 %. we'll hear from the ceo next you can catch our show any time anywhere by listening to and following the exchange podcast while you're there, check out conversations with kelly i record my newsletters. search cnbc, the exchange, on any podcast platform we're back in a moment thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. voya helps me feel like i've got it all under control. voya. well planned. well invested. well protected.

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welcome back to "the exchange," everybody we show you a chart and tell the story and checking on shares of lowe's with gains up about 3% after an earnings beat also raising full-year guidance. ceo ellison shrugged off interest rate concerns over "squak box." >> there's not a direct correlation of rising interest rates and economic head wind for the homeowner market we feel like the macroindicators

are very strong and think they're going to persist between 2022. >> today's move higher could encourage lowe's investors off to the worst start to the year in more than a decade down 15%. coming up, you can find a cummins engine in everything from boats to school buses electricity isn't the only at nt.aner th'sex

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if your search results are unfair or misleading, call reputation defender today to join tens of thousands who have improved their online reputation. get your free reputation report card at reputationdefender.com or call 1-877-866-8555. welcome back from the engines that pow trucks, fishing boats and home generators to distribution systems cummins developed power systems for more than 100 years and now making the expensive transmission from diesel to new ones with hydrogen fuel cells

and electric batteries joining me now is the chairman and ceo of couummins. >> pleasure to be here. >> are we going to see you doing fuel cells like right now or in the months to come >> it is both. we have applications today for fuel cells and battery electric powered trains and a lot of work to do to make those same technologies viable for other applications the largest volume applications commercial trucks i think are still a few years away but there are a number of applications you see them today school buses, transit buses, trains with both fuel cells. >> sure typically it's a trickier thing to take with the size and fuel cells holds promise there and makes sense to go in that

direction but there's companies trying to make the transition. s some investors love that talk about the business bringing in the cash and the business you see is the future. >> it's a really interesting and important problem. right now climate change is the crisis of our time as leaders. we need to address the climate contributinggases that come from burning fuel. commercial industrial vehicles burn fuel a lot and contribute to climate change. so making our way through the transition is critical as critical for the way of life and children and grandchildren today though for many applications it's just not economically viable way to do it

weneed infrastructure so you need to have a place to charge or fuel up with the new technologies second is it takes the technology development to make the vehicles work. that's the fuel cells and powertrains at lower cost and more robust. third is the investment to get from this place to that place. we need to start yesterday. >> yeah. yeah well said. so let me ask about you this industrial stocks are often a favorite of investors in a rate cycle and hear from a lot that think they're a good place to be can you giver me the pulse of the clients? how do you perceive the strength of the economy and the industrial sector? >> our customers are busy, selling a lot of trucks. they could sell more with the components and looking for ways to build capacity and add

production, more production today. their demand exceeds the ability to produce you know about the chip shortages and issues right now they could make -- if they could make more they could sell more. the economy is strong. we are in supply constraint situation. >> yeah. what about inflation both the pressures that you experience as a company and the price hikes on the customer? >> we are seeing inflation in all components of cost labor, material costs. passing some on to the customers. some costs they pass on to their customers. we see inflation throughout the economy but demand remains strong despite that inflation. >> is inflation peaking? >> don't know. it's hard to say i wish i knew the answer to that but i don't. >> thought maybe you would have a bet every sense. the million-dollar question.

we really appreciate it. thank you for your time today. >> a pleasure talking with you. >> that does it for "the exchange." "power lunch" picks things up right now. ♪ yes, it does thank you. welcome, everybody, to "power lunch. i'm tyler. here's what's ahead on a busy wednesday. a volatile day that saw stocks approach the january lows and bounce back and fall again will the market break the key levels we have two market watchers with different opinions to play offense or defense the cyber warfare risk. surge in attacks expected as tensions with ukraine escalate and it could be a turning point where people investing in cyber security stocks.