there's definitely been more attention on that, but the ceos have been more focused on the idea of the regulatory side and making sure they're complying with sanctions and sanctioned accounts it's something cybersecurity is always an issue. >> thank you, kate kate rooney. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. >> hello, and welcome, everyone, to "closing bell." i'm sara eisen stocks try to stage an early comeback but have since moved lower as investors digest the latest information out of ukraine. the dow down 400 points as we head into the final hour of trading. >> i'm mike santoli. let's look at what's driving the action fresh sanctions on russia. russia closed the market and the bank doubled a key interest rate at home, treasury yields are falling hard as investors move to safety and bonds. gold is higher as well while crypto gets a major boost.

and energy remains in focus as brent retakes $100 per barrel while bp moves to sell its stake in russia's state-controlled oil producer the s&p down a bit more than 1%. >> we have a great lineup of experts to break down the crisis in ukraine and the impact on the global economy, including world bank president david malpass, cybersecurity expert, a former s.e.c. commissioner, jay clayton, and former imf chief economist, ken roblauf let's get straight to the market, down 440 on the dow. jittery day for the stocks major averages appear to be heading for another comeback and then turned lower. i think all things considered, it could have been worse >> given the drama of the headlines and these dramatic moves we have made in the global financial system and imposing these restrictions, yes, you would expect perhaps more than 1% downside on the s&p as a matter of fact, also consider the fact the s&p 500 from thursday's open through

friday's close was up about 200 points, so we're giving back just about a quarter of that at this point so it's actually not that dramatic, but definitely still touch and go last week's action seemed to create at least a quasi-retest of the january 24th low, and now we're sitting a couple percent above that here's what's happening globally the s&p 500 relative to all stocks outside the u.s what you see here is u.s. stocks on a relative basis peaked early this year when the nasdaq more or less peaked on a relative basis. now you have seen a reversal u.s. assets often do outperform when you have this risk averse moments and these episodes in trading. so you see this very strong bounce obviously, emerging markets are the big underperformer, down more than 2%, and russia itself, only 2% of the broad emerging markets etf, but still, creating this echo affect with the dollar up and a lot of funding stresses in focus commodities obviously a beneficiary. worries of shortages russia a significant exporter of

many of these products i want to look at it in a longer term timeframe this is just an amazing move here straight up more or less at this very steep angle into the overall commodity index over the last year or so. look at where we are in a longer term basis, 15, 16-year chart, that was the emerging markets, oil boom in '08, so you see on an absolute basis and talking about the faeth on an overall economy and spending power, not yet at levels that seem to be critical at the moment >> if you look in the u.s. -- they are exposed to russia, for instance, consumer staples are underperformer philip morris, pepsi co, and mondelez, they have the most exposure to russia where else should we be looking? i know the financials are underperforming? >> i was going to say financials they have this drag on them. it's not because anybody is

really smelling smoke in the u.s. financial system and worrying there's a fire. it's more the cost of trance acting globally goes down. asset impairments is relative for some banks and in general, we have this kind of moment where yields are lower and it seems like a little bit less of an energetic cyclical moment as well as being compressing the net interest margins >> citigroup down 5.25%. it's got the most exposure, about $10 billion. we'll talk to mike mayo later in the show we'll turn to washington for the latest on ukraine and the response from the west kayla tausche with a look at what we know this hour >> good afternoon. the pentagon says russian forces remain outside of the city center of ukraine's capital of kyiv, in a briefing that is still ongoing, spokesman john kirby said the russian forces were met with significant resistance from ukrainian forces but president putin still intends to have his troops move on the city and the setbacks

russian troops have experienced have not derailed his desires to do that. >> make no mistake, mr. putin still has at his disposable significant combat power he hasn't moved all of it ininukraine, but he's moved a majority of it he still has a lot he hasn't moved into ukraine >> meanwhile, heavy bombardment reported in ukraine's second largest city, kharkiv, despite putin's pledge to french president emmanuel macron he would seize bombing of residential targets as they're talking. after five hours of negotiations at the belarusian border, they still have security concerns but they will meet again here at the white house, we're awaiting a read-out from a call president biden held about 90 minutes long with most western allies we know that ukraine's president zelenskyy has said to the uk prime minister that the next 24 hours are critical here. and so we will see what plans

they have calibrated for how to respond to russia from here on out, now that those sanctions have been unveiled sara and mike. >> kayla tausche, thank you for the update >> at the center of the market action today is the russian ruble crash. what does that mean and how does a currency collapse? first, after a chaotic night of trading post new sanctions being announced, the ruble opened immediately losing 30% of its value. it's off those lows, but still getting hammered why? two of the most painful moves, some russian banks, kayla mentioned, have been blocked from the s.w.i.f.t. international payment system, and u.s. and europe have cut off russia from currency reserves which is its war chest of money it's built up to prop its currency in a time like this russia still does have access to its chinese lifeline as far as we know and it's got gold it can sell, but it's going to be harder to defend itself against this currency crash. what russia can do, it started to do. the central bank doubled interest rates to 20%, which can shore up currencies. it closed the stock market to

prevent selling. and put in place all sorts of capital controls which are just limits on selling or getting capital to flee the country. and what it all means, it's a disaster for the russian people. their savings plummet, they see massive inflation, the prices of imports will skyrocket and when they can eventually travel again, it will be exorbitant for them because their money is going to buy less everywhere, and there's also a growing chance of a russian default. russia is basically being cut off from the global economy. one key to monitor will be if we see broader scrambling for dollars in the system. the pressures in the money markets, because of the ripple effects on european banks and companies. that's why investors are on alert for banks to open up swap lines to boost liquidity and ease the run for dollars we're not quite seeing that extreme panic yet in terms of financial stress, but it is something we're looking for and we're watching for right now, russia is the 11th largest economy, which puts it behind south korea it's not the most important, and

potentially that's why we're not seeing a broader effect, but we'll be watching because the currency crash, as we know, can be a financial crisis and an economic one as well >> you never really know in advance exactly how much leverage is built on clatderal that is denominated in rubbles or russian assets, and just the general idea of taking a big part of the financial system offline, it reveals where the interconnections are and you might be exposed to somebody who is exposed to something as opposed to knowing what the exposures are from the outset. not a lot of stress in u.s. credit markets just yet. a little defensiveness, nervousness, and waiting to see if shoes drop as opposed to seeing -- by the way, you know, russia had this period of time before this where oil prices were high, you know, they were a huge net exporter of those things they managed to build up a lot of dollar reserves now they're walled off from them and didn't do them any good. >> i don't think it's a surprise

to see cryptoes all rallying today. whenever you have now a currency collapse, the sanctions, it makes people immediately think where can we go? a currency that doesn't have government or central bank backing. >> even if practically it's tough for it to work, it's obviously psychological. >> coming up, world bank president david malpass tweeting last week he had met with ukrainian president zelenskyy in munich and pledged support for the ukrainian people we'll ask him what measures his group plans to take in light of russia's invasion. you're watching "closing bell" you're watching "closing bell" on cnbc.m greg, i'm 68 years ol. i do motivational speaking in addition to the substitute teaching. i honestly feel that that's my calling-- to give back to younger people. i think most adults will start realizing that they don't re,n"down 460 o or they don't remember things as vividly as they once did. i've been taking prevagen for about three years now.

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volatile day for stocks, down 1.3% or so on the s&p 500 dow down 1.5%. about 500 points right now as investor monitor the latest dwementds in the russia/ukraine kries. the u.s. announcing additional sanctions against russia today prohibiting americans from doing any business with the russian central bank, the finance ministry, or russia's national wealth fund. this comes on the heel of the u.s. and allies removing key russian banks from s.w.i.f.t. over the weekend let's bring in world bank president david malpass to discuss the ramifications. a good day to have you here. thank you for joining us >> hi, sara. >> what is your expectation right now as far as the extent and the scale of the crisis for the russian economy given the sanctions announced? >> i could mostly comment on ukraine, with regard to russia, you see the direct impact from the ruble weakening. that makes it harder to finance it it also often means inflation.

but it's early to say. it's a fast moving crisis. as far as ukraine, one of the issues is the infrastructure itself, which is being harmed in ukraine. that has long lasting repercussions, and also the refugee flow, which is substantial. i understand that the u.n. is meeting on that, so you know, one thing i should note is they are an elite agency, and nato is leading, and the u.s., in various ways as far as the response to the crisis >> so given what's happening and the unfolding nature of this and the fact the scale of the damage, as you mentioned, in russia is going to be large, not just for the rubble. how do you look at the economic impact of all of this globally >> the near term is direct, and i heard your conversation before with mike santelli about the

rise in food prices, the inflation issues how does the world respond in terms of liquidity to it i think supply matters, how quickly can supply be increased around the world to make up for the outflows, the reduced outflows from ukraine itself, and even from russia, given the sanctions. so those are all issues. one thing i would note is global markets are often resilient and the global economy is resilient, so it will adjust to those, the more immediate problem is the direct losses in ukraine, how the liquidity can be restored or offset we coordinate with the imf on that >> david, i wonder, when you look at the conditions now as a result of these sanctions and other moves in russia, you're

looking at the kinds of dynamics whether it's the plunging currency and really hardship for the population that the world bank, the imf would take a lot of interest in trying to b backstop a country or do what it can to help? is that on the table, those considerations >> not for russia. and i should note that we haven't been to russia since the 2014 crimea takeover by russia so an issue will be how does russia itself rebuild or recover. and also, whether there's disinvestment from the world that becomes an important issue in the longer term of what are the consequences from this immediate situation, crisis. >> can we talk about europe specifically, president malpass and what an energy shock would look like if those exports are fully cut off from russia to europe >> i don't want to speculate on

a cut-off. i don't know that's going on at all. europe uses a lot of energy from russia there are multiple pipelines and there's also pipelines from the southern -- on the southern side of europe and even the availability of natural gas coming through the suez canal and from the eastern mediterranean. there's a lot of energy in the world. it's a question of how do you adjust to a sudden change in circumstances. >> so what should the fed do about all this given that energy and food inflation now are only getting exacerbated by this crisis, and there's a risk of stagflation. you have studied -- you used to come on and comment on central banks. what should the fed do >> i did, sand i don't want to o very far, but one thing that is important is the globeal prices have been stable for years

including the euro dollar pound and even yuan, and so that's important. that's part of growth for the world. and the fed is a central part of that i have confidence that this can be maintained in the medium term i think one step would be -- would be stating confidence in the major central banks can state confidence in their own economies and in their resilience, which i think people should be quite comfortable with that belief. >> it doesn't look chaotic really elsewhere outside of russia right now finally, as far as your involvement in the world bank, what exactly aria doing and monitoring as far as ukraine assistance what should we be looking for out of the world bank in the coming weeks and potentially any help in russia as well, as you noted the. >> we have a variety of tools, and so they all have acronyms,

but basically, short term financing can be added to. we happen to have a recent operation, you know, ukraine has been a big client of the world bank and so we have ongoing operations and we can add to those. and also, the external partners can add to those, and that provides near term budget or support from a cash flow standpoint then looking, the refugees are going to neighboring countries, and we have operations in those countries that can be adjusted to respond and this can be done, we can move pretty quickly, meaning in a matter of days or weeks, for various operations, especially if there's a consensus among shareholders to move forward which there seems to be. >> can russia ever be kicked out of the world bank or the imf, or it doesn't work like that? >> i don't want to speculate on that that's actually rare

you know, the world bank was set up to be -- before the end of world war ii to be inclusive so that's what we project. as i mentioned, we haven't been lending to russia since 2014 >> got it. david malpass, very valuable to have you here. thank you very much. president of the world bank. keep us posted on those actions in ukraine >> thanks. >> just about 40 minutes to go before the bell. the dow is down 434 points or so the s&p 500 down 1.1%. the nasdaq and russell 2000 actually have been the outperformers all day. cyberstocks have sign a big move higher as tensions ramp up in europe after the break, we'll ask the ceo of mandian how the crisis in ukraine is shining a spotlight on his industry. >> check out some of today's top searched tickers the russian ruble, no surprise, drawing the most interest on the day, followed by the ten-year yield, tesla, the moscow

exchangeanth, d e rsx t#1 o we'll be right back.,n"

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a lift as the russia/ukraine conflict raises concerns of a cybersecurity threat names like mandiant, crowdstrike, all sharply higher over the past week joining us is mandiant's ceo, kevin mandia great to have you on here. i know you have been kind of alerting your clients and trying to kind of re-enforce some defenses here for them what are you seeing at this point, as we brace for various types of hostile online activity and of what sort >> mike, thanks for having me on the show i can tell you, we have been over in ukraine for years, and you have to be in the hot zones to see what the aggressors and offense is doing in cyber. so we have been operating in ukraine primarily to see what russian military and russian intelligence organizations do when they have a cyber campaign.

and what we have seen over in ukraine is destructive attacks, masquerading as ransomware. we have seen denial of service attacks which is essentially like someone dialing 911 thousands of times and jamming the phone lines and then influence operations or disinformation campaigns to misinform ukrainian citizens, saying things like, hey, the banks aren't working and things like that to undermine confidence in major systems. we're seeing it largely contained just in ukraine for now. and obviously, the big concern is does the cyber domain and the cyber campaign permeate outside of the region and into other areas. >> right, and have you seen it really intensify, let's say, over the last couple days? and also, i think the bigger concern perhaps is as an instrument of really, you know, warfare, of infrastructure attacks and things like that >> right there's no question, mike, when a modern nation mobilizes for war, they have got options in

air, land, and sea and then in cyber. and when you go to cyber, you immediately think, what can people do in the cyber domain. they will go for, if they want to cause mass damage or undermine confidence, they will go for what's called operational technology or the o.t. environments that's water, that's utilities, those are the factories that we use to manufacture things. so that is definitely as they say, an arrow in the quiver that people could deploy at some point. but we have not seen that kind of escalation yet. >> we're seeing your stock up and all of the cyber stocks up, kevin. are you seeing pre-emptive spending from companies like financials or other companies that might be in the cross hairs here in the u.s. or in the west, bracing for more intense cyberattacks from russia >> well, absolutely. whenever there's conflict, that's why security exists whether it's geopolitical differences, criminal element, or in this case, actual

conflict, you're going to see organizations and nations think it's an opportunity to escalate, an opportunity to do community defense. so without a doubt, the interesting thing about the cyber domain is it's protected primarily by the private sector. air, land, and sea is protected by governments so the private sector is going to take a positive bump in regards to value during times of conflict like this >> kevin, should we take any comfort in the fact we haven't seen anything kind of spill over beyond what you might have anticipated or anything that seems like it's actually been destructive to daily life at this point or is it still just kind of in the trenches and we just don't know the magnitude of it yet >> no, i think we know i don't know if i would take comfort. i would be constantly vigilant that's what i think we are as a nation in the united states and in europe. everybody is watching, wondering specifically what might trigger

an escalation in the cyber domain could it be economics, could it be the kinetic aspect of this? nobody really knows. then once it does trigger, the concern will be, do we go to absolute melee in cyberspace, where every attack at the disposal of russian offenses is launched, or is it more gradual, incrementalism my gut, it will be more gradual incrementalism but one thing i'm confident is it won't be secret we will see it when it happens, we'll know it when it happens. the question is, will we see an escalation in cyber? but that first wave, we're going to notice it and you're going to be reporting on it >> and please stay close on that kevin, separate question i don't think we have had you on since earnings and since reports surfaced that microsoft is interested in buying your company. are those talks going on anything you can tell us >> yeah, i can't comment on

rumors or speculation like that. >> you haven't been an independent company for all that long are you looking to make another deal >> well, you know, we just show up every day and serve our customers. that's what we do, and that's what we continue to do >> got it. didn't expect it, but i had to try. kevin, thank you >> thank you very much >> all right, time for a cnbc news update with rahel solomon >> hi, mike. here's what's happening at this hour russian riot police stopping more anti-war protests this one in st. petersburg here. the kremlin says most russians support the assault on ukraine, though some polls disagree a rights group says russian police have detained more than 2700 anti-war protesters in 51 cities >> and the former soviet republic of georgia does have volunteers lining up to fight russia in ukraine. they gathered outside ukrainian embassy heeding the call for international help to defend his country. >> and back here in the u.s.,

georgia state senate has voted to drop gun license requirements for handguns carried in public proponents say it will help people protect themselves amid a spike in violent crime opponents say it would increase violence >> jury selection is set to begin in the first trial of a january 6th defendant, he's charged with invading the capitol with a holsterred handgun on his waist he's also charged with interfering with police officers and threatening his own children not to report him to authorities afterwards you're now up to date. sara, back to you. >> rahel, thank you. >> still ahead on the show, bridgewater's karen tambour breaks down how much russia and ukraine matter to global commodities markets. wheat, palladium, all of the things russia exports. a check on bonds, yields are sharply lower as investors move

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closing bell here's where we stand. the s&p 500 down about 1.2%. briefly traded positive midday the nasdaq and russell continue to outperform. up next, wells fargo's mike mayo tells us the one u.s. bank most at risk to the conflict between russia and ukraine plus, the new york stock exchange and the nasdaq halting

trading of several russian based stocks in the wake of new sanctions against russia jay clayton will join us to weigh in on all that check outsome of the defense stocks getting a boost today lockheed martin, northrop gr grurmenened up all bweeten 1.7% and the pursuit is on. the pursuit of outperformance at pgim. y prtg n we'll be right back. 4■ with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlas at pgim.

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stocks are drifting a little lower here again as we head to the close. dow down about 5 moints. banks have been among the hardest hit sectors all day long following a drop in treasury yields and as sanctions increase uncertainty around the whole system let's bring in mike mayo i wanted to start can city group

getting hit the hardest. down 5%, disclosing $10 billion of exposure in russia. what's the risk around this name >> well, for u.s. bank stocks generally, these are sobering times. risk is up given the potential for contagion, escalation, and unforeseen consequences in an interconnected global financial system there's a primary risk, and that's where we highlighted citigroup, we lowered our numbers today. we think consensus for this year is 25% too high. and they are exposed to russia directly there's also a secondary risk. that's with europe slowing down potentially. that could also hurt citi as well as the likes of jpmorgan, and then there's the tertiary risk which could mean less global economic growth you have already seen about 1.5 rate hikes pulled out of expectations for this year on the forward yield curve.

but there is some comfort. first, the russian economy is not that big the u.s. economy is 14 times bigger the russian economy is actually smaller than the state of new york second, in terms of the cyber risk and the cyber threat, banks take that very seriously they have controlled, they have regulators looking over their shoulders. they have been preparing for events like this for years the largest banks spend $1 billion a year, and then there's also collaboration versus competition. so banks are sharing information with each other and with the government as it relates to cyber threat, and third, there's many u.s. banks that are u.s. focused. so regional banks, you saw one get taken over today, the likes of u.s. bank corp or truest or among the largest banks, bank of america is more u.s.-centric the further away you are from the situation in russia and ukraine, the better you are as a u.s. bank. >> wanted to dive into your

point on the interconnected nature of the financial system while russia and the u.s., it might not be that strong, citigroup, sure, but for some of the other banks, the european banks got hit a lot harder talk about the exposure there for the european banks to russia and what that might mean in terms of ripple effects for the u.s. banks >> well, certainly, you saw the european banks down around 4% to 5% today they have more direct exposure to the region. not only to russia but also a potential slower european economy. so they're closer to the situation. now, there could be unforeseen consequences we have seen it in the past where a party has issues and then a u.s. bank is exposed to that problem having said that, banks have had enough time to prepare for this situation. so the banks in the u.s. have known about the russian situation really as far back as long term cap, if you want to go

a couple decades, there have been sanctions in place, so i do think the u.s. banks probably have taken adequate protections. the best that they can, for this situation. but there could be ripple effects, and that's part of the higher risk premium that you're seeing get priced into the bank stocks today >> mike, i know you said you believe citigroup's forward numbers have to come down. they're going to have an investor day does that in itself explain the struggles of citi, the shares on a relative basis it's been dead money for two years. and if what you're saying about the fact these banks have had time to prepare, it doesn't seem like there's any critical issues, does it not make an opportunity for the global exposed banks relatative to the ones that are sout performed >> i didn't say there weren't any critical issues. nothing is bullet proof here the risks are higher than quite some time. having said that, if this situation gets resolved, and life goes forward, yes, it's absolutely an opportunity. i do think in the case of

citigroup, numbers need to come down i think that's one message that citi must deliver this wednesday. but it's been a terrible stock because they have had worst in class returns, worst in class efficiency worst in class stock market valuation. as you know, i testified to the congressional committee afterthe global financial crisis. two of the ten chapters in my book are about the issues with citigroup. they need to change the culture. i think jane fraser has the potential to be a change agent on the other hand, i think the board is horrendous and the board needs to get replaced. a couple years ago, citigroup said the restructuring is done, and then a couple years later, now, they're spending what i estimate to be at least $10 billion to restructure again at some point, you need to hold the overseers accountable when you're talking about the sixth ceo in a couple decades. >> you have been forceful on that point, mike appreciate you coming on and letting us know what you think

today. appreciate it. mike mayo. >> when we come back, bitcoin rallies. oil takes a leg higher, and what's driving tesla's bounce today? those stories and more next in the market zone. >> plus, we'll get earnings after the bell from hp and zoom. we'll break thosen■ soon as they cross.n■

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. welcome back 13 minutes left of the trading day. here's a look at what's coming up in the second hour of "closing bell. we'll ask karen carkarniol-tamb where she's putting money to work >> plus, former s.e.c. chair jay clayton will weigh in on the

decision by u.s. exchanges to halt trading in some russian stocks ken rogoff will talk about the potential ripple effects across the globe, and we'll get earning results from zoom video which sits around 75% below its pandemic highs first, we have now 12 minutes to go here in the trading day and we're now in the closing bell market zone. today we have senior portfolio manager barbara duran joining us we'll kick it off with the broader market stocks are under pressure on the final day of the month dow, s&p, and nasdaq on track for their second straight monthly losses and mike, we're down 281, so we have rallied here in the past few moments. it's pretty remarkable to see the u.s. market holding up so well, given you've got, yes, i know it's the 11th largest economy in the world, but it's the third biggest energy producer and its currency is cratering and its economy is being shut off from the entire system >> absolutely. the reasons for that perhaps that we have seen the resilience

is crude is up but not making aggressive new highs so we have kind of been here before, we have absorbed the possibility of these level of energy flows, also, credit spreads were wider last week than today those are two ways a lot of turmoil would make its way into equities also, 40% of the nasdaq, i think the average pullback in nasdaq stocks are 40%, and a third of the s&p is down at least 15%, 20%. so it shows you we front loaded a bunch of the pain. >> barb, is it changing, the russia/ukraine situation, is it changing anything you're doing >> actually, yes, it is, because it's providing buying opportunities. yes, there's lots of uncertainty about whether there will be a cyberattack, what it means for energy prices, what it means for inflation worldwide, but i see those more on the margin typically, when you have geopolitical events and crises like we have seen, it opens up buying opportunities so yeah, i have had my shopping list ready and buying some stalwarts like microsoft, united

health care, and more. so yeah, it's been interesting >> interesting for sure. let's get to energy actually it's been one of the more interesting areas of the market. oil continues to rally just moments ago, the white house said sanctions on energy remain on the table. cnbc's pippa stevens has the latest >> energy is the top sector by a long shot. the group is up about 2% while the other ten sectors are in the red. now, this strength follows brent crude regaining $100 with u.s. crude right around $96 per barrel drilling down on the sector, occidental is leading the way. jumping more than 12%. the company posted strong results last week and said it's hiking its quarterly dividend from 1 cent to 13 cents per share. other upstream players, devon, apa advancing, schlumberger is one of several names in the red.

the company does have exposure to russia, and it's not just oil and gas. clean energy companies are also surging. the solar fund up 7%, leaders include solaredge and sunnova, it follows a whole lot of weakness >> in that subsector, for sure pippa, thank you barb, a lot of things have kind of come as a bit of a revelation here, and one of which is maybe underinvestment in lots of energy infrastructure. you have a lot of rethinking of exactly what we need and how to get it has it changed anything on the investment front with regard to energy, either new or old? >> well, it's interesting. i actually had some oil service and equipment etfs that i sold late last week because i think there's a pop in oil, oil could go higher depending what happens, particularly with russia and europe, as we know there's a big buyer of russian oil. oil prices could go higher, but i think we'll see more pressure to start drilling, but i think

we have already seen a lot of oil companies are opting for profitability and we'll see how much government pressure will start to change that i think right now we still have supply issues that are really being exacerbated. if you're long oils, you probably want to stay. i sold my oih because i think there's a temporary pop, but having said that, oil prices and oil stocks could go higher in the short term >> energy again at the top of the market, up 2.3%. brent closes above $100 for the first time since 2014. the question is if this settles down, then what? how much is factored in in terms of the demand reopening that we're supposed to be getting from omicron which is also supporting prices. >> typically, the market doesn't love if prices are surging because of a supply shock and it's not about some robust demand i think it still remains at a somewhat comfortable level it's going to obviously create a little pressure margin wise on some businesses and consumers, but i keep pointing out, crude averaged around $100 in the early 2010s.

much weaker and smaller economy when consumer incomes were a lot lower. to me, it's not yet at the point where it says it turns the economy or really turns back the recovery but without a doubt, it's a boon for the sector because there has been underinvestment, there is capital discipline right now in a lot of the traditional energy producers. it seems like we're at a level where it's not really a zero sum gain with regard to the roefs the economy. >> by the way, we continue to recover here the nasdaq has gone positive the dow is only down 250 points or so. a number of sectors in the s&p 500 have turned green. consumer discretionary, utilities, industrials, and energy has been green all day. part of the nasdaq story is tesla, which is surging today. shares rallying more than 6% after bernstein upped its price target on tesla for the first time since last august up almost 17% right now. the price target now, $450, reiterating its underperform rating on the stock, saying it still believes risk reward at current levels is unattractive,

but the firm did concede that based on other high priced growth stocks and given tesla's unique growth protyle, tesla's valuation may not be unreasonable barron's by the way pointing out in a piece today many investors believe rising oil prices will be a boost potentially to tesla. barb, what do you think of that call and the move today? >> yeah, i think it's not a short term call. i think as you know y have not been in tesla because of valuation. but what i think happens over the longer term, tesla will continue to climb higher i think it has to grow into its valuation, but when we look at all the targets, both governmentally and autos around the world and all of the esg pressures, we are making a move to electric vehicles, whether it's cars or trucks. and tesla is very well positioned as the pie expands, they will expand so i think longer run, if you're a holder, you just live through the volatility with tesla. this particular call, though, is a little bit of a short term almost marketing call.

>> well, and i would say, you know, of course, bernstein has been bearish on the stock for a while. its price target is below where it's trading for a while, although it's 30% off its highs. but lucid is up 6% today rivian is up 8%. the cloud stocks are up 2% you actually have seen a little bit of a rerotation from depressed levels back into the secular growth stocks. i think what's going on are yields are down, real yields are down, and it sort of seems like at month end, let's remember today is month end, you're getting a spillage back into some of the underperforming areas. >> netflix is up a percent, teledoc is up a point. so it also had a deal with amazon it will be interesting to see what happens to zoom with earnings after the bell on what has been brutalized. >> it has, but up today. bit kaine rallying back above $40,000. kate rooney looks at the crypto comeback >> hey, mike

crypto markets have been pretty tightly correlated with equities and tech stocks in particular. they're actually outperforming today. we're seeing a shift in investor sentiments and the narrative around crypto as a store of value in eastern europe. bitcoin up more than 10% back above $41,000 ether also up big and a lot of crypto related stocks getting a boost as well. bitcoin prices have been hit as a reaction to the war in ukraine. it's been selling off as investors move away from some of the riskier growth assets. in the past few days we have seen a rise in volume in exchanges in ukraine and russia helping drive some of the narrative around bitcoin as a long term store of value for now, tightly correlated to the nasdaq we'll see if it can decouple we have seen in ukraine a boom in bitcoin for crowd funding the ukrainian government tweeting out bitcoin and ether addresses for direct donations that's brought in more than $12 million in the past couple days. guys >> yeah, kate. it is interesting. you mentioned the correlation with the nasdaq, but you have also been reporting about how

it's not that easy for the many billions that can't run through the russian banking system or anywhere else to actually really make its way through crypto in a timely way >> yeah, it's harder than it might seem bitcoin has been floated as the alternative, and senators this week say russia will probably just pivot to bitcoin. one of the big issues is liquidity. those markets tend to be very thinly traded, even if they could move to bitcoin exchanges without sanctions, it's really only in the $3 million range is the max you can buy at any certain point. then you add on top of that sanctions in some of the restrictions and a lot of these global exchanges are subject to some of the same regulations as banks. they're really locked out of exchanges, not a lot of options for liquidity otherwise, and yeah, like you said, harder than it might seem. >> kate rooney, thank you. >> nasdaq is now up a third of 1% on the bitcoin story, you can see the thread here, the question will be if it breaks

that really tight correlation it has with the s&p 500 with risk markets. because the second everybody got scared and ran for the exits, it behaved more like a high-tech growth stock that fell on higher interest rate fears than anything else, a safe haven. now this is sort of a different story. >> at least a test case. i mean, i think it's hard to really make a determination because the nasdaq has been up so it still has that link. also, these levels, under $40,000 from where it started today, you'll still well below the high it seems as though it was ripe for some kind of lift anyway, but without a doubt, this is the kind of scenario that you kind of -- that the bitcoin maximalist would say it's built for. >> it's something we have barely ever seen before we have only seen, barb, in places like iran and north korea and venezuela. we haven't seen countries locked out of s.w.i.f.t. except for maybe iran, so you can see why there's appeal, even if you're

not a bitcoin enthusiast to what it offers today in a situation like this, can't you barb >> oh, i'm sorry i thought you were talking to mike, yes. i'm sorry. well, bitcoin, i still don't see it as a store of value or an inflation hedge. i think it is a risk-on, risk-off asset, and certainly, why would you want to get paid in bitcoin unless you think the price is going to go up? so i don't think it's a serious alternative for any of these -- any country. >> yeah, certainly not as the sole currency, at least not yet. as we head into the close, the market does continue to firm up. we did see the s&p 500 trade green earlier in the day, around midday it then backed off again, about 1.4% maximum loss. you see the volumes, there's still more declining volume that advancing volume bonds and stocks in emerging markets having a tough time.

russia clearly a part of this. really trading off today with some of these restrictions as we head into the close, the s&p 500 has a chance of going flat it's down about a quarter of a percent right now. the dow is down about 500 points it's now down about .5%, 173, and the nasdaq, underperformer for the first two months of this year, is outperforming today up about .3% >> pretty amazing recovery there with the nasdaq up almost .5% and the s&p 500 well off the lows welcome back to "closing bell. i'm sara eisen here with mike santoli. coming up this hour, we discuss how sanctions against russia could impact the market and the economy when we're joined by former s.e.c. chair jay clayton and former imf chief economist ken rogoff first up, barbara duran is still with us, and liz young joining the conversation

liz, what do you make of this action that we just got into the close, the buying, the nasdaq really took off, the s&p only closed down .25% the dow rallied back from a more than 500 point decline given some of the intense sanctions that we saw -- we're seeing in russia and its economy? >> well, it's encouraging to see some resilience in the market, especially after a day like today. but this, i think, is just a further indicator that the market doesn't know when direction to move on this. i would say this with certainty, i wouldn't be selling at a time when the vix is at 30. i think i want to see some of this dust settle i want to see the market try to figure out a direction to go, and when you have something like the nasdaq turning positive with the ten-year rallying, that makes sense. but you have got the russell 2000 turning positive and stil some of the other larger cap indexes staying negative i can't really tell yet if this was a risk back on scenario or just kind of a relaxation in rate scenario.

i think we need more time to figure out how big the contagion is and which sectors it's going to affect. i would sill be waiting this out. >> and that's a good point, mike, on the rate side, because you heard all sorts of commentary today this is going to make the fed, harder for them to do a 50 basis point hike in march. that's been pretty much priced out and harder for them to be so gung ho on raising rates with so much geopolitical uncertainty on the global economy >> and the market is kind of moderating its view of how many rate hikes we might get, which who knows if they have done enough and perhaps that's a bit of a silver lining. you could argue even absent what's going on with russia/ukraine, whether in fact the market got over its skis in terms of pricing in rate hikes but barb, i was going to ask you here, in terms of even kind of getting away from the headlines, what the market

has told you in terms of, look, we're repricing for a fed tightening cycle, for a deceleration in earnings growth, and just p.e.s were already on the way down market wide before russia/ukraine how does it all shake out now in terms of as you look at risk reward and individual stocks, are they back in the wheelhouse, or do they still have more to go >> mike, that is the right issue. the biggest issue still continues to be inflation. when does it peak, how much does it come down, how much will the fed raise rates? ukraine has been something in the interim that really i think presented some great buying opportunities, particularly in names, growth names which have come down a lot as has been pointed out in this program, and presented some one-time buying opportunities. i don't think we're going to know for quite a while until we see an inflation print where it's down, another one that's down again, and we get a sense of the rate of change. and also right now, earnings obviously are key. what are normalized earnings clearly, i think in the second half of this year we're going to

have much better visibility on that supply chain should be much more in balance demand should be more normalized there's some $3 trillion in savings out there, but the average saver is down to where they were pre-covid. so even though retail sales are up, that consumer spending should slow down a bit but we have full employment, wages going up, so second half could be quite constructive on the market, but we have to just wait and see, watch those inflation prints very carefully. >> liz, do you agree with barb that this has provided a buying opportunity, especially from some of the beaten down growth names? nasdaq going out with a loss for the month of 3.4%. >> i would still be waiting in those growth names until after we get past the first hike it's been seen before, if you look historically, when a hiking cycle begins, you don't see a firming up in technology and some of those higher growth names until after the hikes start. so i would still wait that out a

little longer. and then i would be really choosy about it. you have to choose high quality growth, and you have to choose growth that has earnings momentum behind it earnings are going to slow this year the growth rates are going to slow gdp growth is going to slow. compared to last year. that doesn't make it bad that doesn't make it weak. it's just a different part of the business cycle so the market is going to have to really search for opportunities and find things that are durable through this part of the cycle. and i think that we're still up against quite a few headwinds here in the first half as we mentioned, inflation is still an issue i don't think that this crisis helps that issue at all. i think the fed still has to act, and all this has really done was take the expectation of possibly 50 basis points back down to 25 basis points. but regardless, we're still in a hiking cycle we still have headwinds for growth stocks until we get some of that beginning out of the way. >> the idea of migrating toward quality stocks, you know,

companies with these defensive high profit margins and good balance sheets, it makes a lot of sense that's what happens in midcycles, they tend to do better, but how do you distinguish that from the big nasdaq 100 names pretty much faang aside from amazon and netflix, they're quality. they're all high in the quality factor indexes and etfs. >> yeah, and where would define those as companies who do have that good competitive mote, and they have pricing power. we have seen price rises because of inflation you want to have companies that have that pricing power, can raise their prices, and not lose customers in the meantime. so a lot of these big faang names during the pandemic have become blue chip stocks, and they're going to continue to act that way, especially in times of fear when investors still see more opportunity in equities than in other asset classes. i do think even after a rally in bonds today,i think we'll see that relax we'll see the ten-year yield get back up closer to 2% again, and some of this will normalize as

far as yields go and you'll still see resilience in those big tech stocks and then underneath the surface of those tech stocks is where i think the quality piece matters. i would look at cash flow, too, because as rates rise, you want companies that can finance their growth and don't have to rely on rising rates to do so. >> it sounds like both of you, liz, it doesn't sound like you're necessarily worried about the ripple effects or contagion from what's happening in russia on sanctions and ukraine market behaved well today relatively but what is the off ramp here? how does this end? we're clearly going to continue to focus on the implosion of russia's economy so where does that go? and at what point do you think u.s. investors should be concerned? >> i think the biggest concern that we saw today was through the financial system, so we saw european banks get hit pretty hard and then just this

trepidation because of some of the seizing up of assets that happened in russia nobody likes to hear about financial movements being blocked. then as the day went on, we started to get more clarity. maybe there wasn't as much exposure as we thought i think the best case scenario here is this is actually a buying opportunity in u.s. financials and that dip was a little bit overdone. i still do like financials, at least in the u.s., for the year. i think what we have to watch is the european financials for contagion. obviously, they're more exposed to eastern europe. if european financials, western european financials start to have much more problems, then we start to worry about contagion bleeding over into the u.s >> barb, do you also like the banks? >> the banks in general, yes i mean, if given this point in the cycle, i think financials are a good place to be but it depends you have to go, i think, sector by seconder with the regional banks, some of the best beneficiaries in terms of rising

interest rates we need to understand one point liz made was we really have to understand or do a lot more analysis in the coming days about which sectors, which companies are going to be impacted by, as you said, the implosion of the russian economy. and that will be a lot of european companies how does that affect us? there's a lot we're going to learn, and it isn't necessarily clear right now. >> we do have zoom video earnings out right now it looks like a beat in the quarter just past, but mod guidance below forecast. revenue for the quarter, $1.07 billion. adjusted earnings per share is coming out around $129 compared to $106 was the estimate guidance, though, looks like both for the current quarter and for the full year, first quarter earnings per share guidance, 86 to 88 cents. the estimate, $1.04. previous guidance is $1.04, and

revenue guiceance just a little below what the prior guidance was. for the full year, also looking significantly lower on guidance on both revenue and eps. so clearly, we're talking about a deceleration of the growth it really looks like the full year, full fiscal year we're in now is going to be kind of a no-growth year in terms of bottom line. >> $1 billion buyback program, and that's a new board member, the ceo of service now and was the ceo of s.a.p., he's on the board of under armour, dell. beefing up the board a little bit. he's replacing a long time early investor clearly the focus is on the outlook. >> yeah, without a doubt and the question has been just how much of a downshift there was going to be with the stock already down substantially off of its record highs. down about 70% off the highs before the after hours, actually see it down 10.5% right now. barb, i know you haven't really had a chance to dig into it, but

how are you thinking about this name now >> well, you know, before the earnings i figured they would beat their earnings and revenue estimates because they typically do the forward guidance was, as you said, what everybody is watching on the surface, what you said is very disappointing because everybody is looking for a bottoming, for a reacceleration because they have been really focusing on the enterprise, introducing new products had good uptake from larger businesses, but this does not sound good, i have to say, so the stock maybe is under consideration, because if it's going to be a wild year or two, it may be something i don't want to hold. >> but just to clarify, you do hold it, don't you haven't you liked zoom for a while? >> yes, i have through thick and thin and figured that i know the effort they have a tremendous platform, a huge addressable market that continues to expand, and particularly with the hybrid work environment, which really seems to be here to stay, you're going to have continued need for

collaborative video conferencing calls, so i want to dig into the numbers and see what's going on in the enterprise area and how long they think that's going to take that's really the key to them. i can't say just now, but that's on the surface, again, it's disappointing, no doubt about it >> well, it's coming back a little bit, down a little less than 9% after hours. don't miss a first on cnbc interview with zoom's cfo tomorrow morning on "squawk box. in the meantime, we have another earnings alert for you lucid motors just out. phil lebeau with those numbers >> take a look at shares of lucid motors under pressure because of the numbers within the numbers. in terms of the loss per share, 64 cents loss per share, with revenue of $26.4 million but the reason the stock is under pressure is because of what's happening with production guidance first let me give you the reservation numbers. now it's exceeding 25,000. up from 17,000 on november 15th. that reflects potential sales of 2.4 billion dollars, and their

production now exceeds 400 vehicles as of february 28th now, for the reason the stock is under pressure it is updating its guidance for all of 2022 to a range of 12,000 to 14,000 vehicles the previous guidance, 20,000 vehicles that's a substantial cut i just got off the phone with the ceo. he says the biggest issue are supply chain and quality challenges and he didn't get into a lot of specifics but when he talked about the supply chain, he pointed out the glass that they use in the lucid air, not up to their standards. they are then going to start looking at alternative sourcing for some of the key components within the vehicle they also mention the carpeting within the vehicle it maynot sound like a big dea to some people, but it's not up to their standards two examples of them looking for alternative sourcing they expect capacity to hit a half million by mid-decade how will they get there? not only with the plant in arizona but they're also now officially building a plant in saudi arabia

again, shares of lucid under pressure down more than 8%, guys, on this new guidance for 2022, substantially lower than the previous guidance. guys, backto you >> all right, phil, thanks lucid giving back the gain it had in the stock in the regular session with the after hours reduced guidance on production thank you, phil. also thanks to liz young appreciate you joining us today. we'll talk to you again soon >> and barb, before we let you go, we want to zone in on your top pick right now what is it >> all right top pick right now is uber uber is down about 15% year to date it's near its year low and i see this as both a recovery stock and a secular play on two big global markets that's the ride sharing and the delivery home delivery. and if you saw during the covid lockdown, it was great they had diversification because the ride sharing business collapsed with the lockdown, and yet the food

delivery service really picked up what they're doing in the meantime, not just sitting there with these two businesses, they're rapidly expanding not only internationally and here, but with multiple services, products, a way to connect both services with this uber pass and they have tremendous amount of innovation going on, and trying to really use this as a platform to get more users they have also got an e-commerce freight business, which should only grow, and again, all of these markets are still very new, very large, and even though they have got leading share in so many areas, it's still very underpenetrated so i think this is a name that a year out could be a double or more. >> it had a good day today up 3%. i just wonder how much of the rally had to do with the fact it was month end and a lot of the losers ended up on top today, especially in the rally into the close. >> it was a part of it without a doubt in terms owhat works and what didn't today. i wouldn't say it was a massive rush into equities because they

didn't underper form bonds that much >> barbara, thank you. good to see you. >> good to see you >> we're just getting started here on the second hour of "closing bell. up next, bridgewater's karen karniol-tambour discusses the outlook for commodities as the war continues to rage between russia and ukraine >> plus, jay clayton on the new york stock exchange and nasdaq's moves to halt trading in some russian stocks that stli on russian stocks that stli on their exchanges. or the places we didn't go. ♪ ♪ "closing bell."y j■

earnings hp just out. frank holland with those numbers. frank. >> shares of hp up, just under .5% after a beat on the top line 8 cents above estimates and the company raising its full year guidance two big segments personal pcs beating estimates, 15% growth i spoke with the ceo just a short time ago he says the pc market has grown

by $200 billion during the pandemic and the company's 15% sales growth was created by progress in their supply chain management hp's printing segment coming in just below estimates at 23% decline in consumer revenue. that weighed on the results. hpq raising the full year guidance the top end, more than 20 cents above. the ceo says he also does not anticipate any material business impact due to the russia/ukraine tensions he said the company has simply shifted some of the shipping to europe through alternative channels shares of hewlett-packard up slightly after a pete on revenue and eps and raising the full year guidance. >> frank hholland, thank you ver much i also had a chance to speak with the ceo of hp some really strong growth in the portfolio outside of the pc and printer business, which is their core, but the emerging segments like 3d printing and industrials, double digit growth, gaming, for instance, a smaller piece of the pie, but

something to watch for investors. also just as far as what's fueling the demand, they're seeing 9% growth overall, hybrid work environment people are buying printers and pcs at home and in the office as they see people going back to work and they get -- they try to get employees better experience. overall, decent number i would say for hp not necessarily a victim of stay-at-home or reopening because it benefits from both. >> right, there is a consumer element to it, in addition to corporate spend. a super cheap stock, has been really since it split up with hpe. and you know, i think that's the bull case, they can take the cash cow businesses, reinvest in faster growing areas and see if that becomes more of the sum of the parts. >> got to get through some supply chain issues. be sure to catch the ceo of hp on "mad money" tonight with jim cramer >> energy was the best performingsector today boosted as oil prices continue to rise amid the russia/ukraine conflict

joining us is karen karniol-tambour, it's great to talk to you. since you guys at bridgewater have digested all of the tough sanctions on russia over the weekend, what ultimately do you think is going to be the best way for investors to tackle this issue? >> i think commodities are really important for investors right now because you can get new geopolitical armed conflicts into different environments in terms of whatthe commodity market is like right now, it's happening in ukraine, is happening into commodity markets. they were already wrestling with very tight conditions, very low inventory, very weak supply growth underinvestment. that means it's a situation that ripe for disruption. any small amount of supply disruption could cause big upside moves in prices we don't know what's still ahead of us. we do know there's a lot of infrastructure that is critical to produce and move commodities, whether that's energy and food

stuff is important, too, that is in harm's way as long as this war will last. and we know that in past periods where we saw tight energy market, very small supply disruptions could cause big moves. for example, in 2011, when you had the gadhafi regime in libya go under maybe 1% of the market went out, yet you saw oil prices move radically higher because the market was so tight. the market today, at least as tight as it was in that period >> are you saying we have not yet seen the bulk of the energy price? a lot of these commodities have already moved so much? >> i think for investors, first this is a protection this is a protection against what could happen, the fact that you still could get big moves. the second is you still have very, very, very tight inventories, very tight supplies and you still have markets that are actually still priced to have declines. so today's prices are still elevated compared to relative prices this is an asset that is still not priced to depreciate the way

the other assets are going to depriceate with inflation. >> when it comes to energy in particular, right now, of course, the sector is benefitting from the fact there has been a hesitance on the part of producers to invest more, to actually get supplies moving much quicker are we at risk that that behavior is going to change? it has in every other cycle. >> it absolutely should, and i'm sure it will the reality is, though, outside of u.s. shale, most producers would take a long time to materially bring supply online and so you have u.s. shale is in this unique position where those are some of the only oil that can come online quickly. with opec, you had so much underinvestment that a lot of members can't even raise supply to meet their current quoteaquos higher prices will give the signal now is the time to invest, but you have a tough time relieving that quickly as long as an expansion lasts it's not only oil. food is an important complex of commodities for investors to

also look at because russia is a major exporter of wheat. ukraine is a major exporter of wheat and corn and when you basically look across wheat, corn, soybeans, they're somewhat interchangeable. you can basically feed your animals corn or wheat, and you have very, very, very low inventories across all three with a lot of risk of disruption >> and in terms of the portfolio impact of allocating toward commodities, where would you say it should come out of? should it be whatever you have in fixed income, because it's at risk of inflation, go toward commodities or in place of something else >> from a risk perspective, it's much riskier to hold an outright commodity allocation than a fixed income allocation. if you do that, you'll have a riskier portfolio. for some investors, moving into commodities could be the right move because risk premiums look like some of the best in years

and you still get upside exposure either way, i would expect investors to say where is my inflation protection, where do i do well if inflation is much stronger than anticipated. and if before the situation with russia, it was more of a demand than supply story. supplies were easing, but you had strong demand outpacing supply now you have a major geopolitical issue that could cause supply surprises that we're not going to know when they come. good time for inflation protection >> karen, thank you very much. appreciate it. karen karniol-tambour. >> up next, jay clayton ow how etfs could be impacted by the halt of trading in some russian stocks at the new york stock exchange and nasdaq. >> plus, former imf chief economist ken rogoff on the potential economic g

potential economic g sanctions against russia at vanguard, you're more than just an investor, .x=ure for those you love. vanguard. become an owner.

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a number of companies taking measures to address russia's attack on ukraine. uber, fribs, announcing it will speed up the sale of its remaining stake in russian ride hailing giant and remove its executives from the joint ventures board general motors saying it will suspekd exports to russia until further notice

this followed volvo halting all of its production and sales in the country. airbnb announcing it will offer free temporary housing for up to 100,000 ukrainian refugees through its nonprofit arm, airbnb.org and google's youtube blocking a number of russian channels from receiving ad money including those affiliated with recent sanctions. we'll continue to keep an eye on some of those companies as they make their own moves to deal with the sanctions and go about it their own way as well >> yeah, obviously, a lot to be disentangled, but impressive how fast a lot of these big companies are moving to back away from that market. >> look at bp, look at shell their stocks are moving lower on it >> a long term bet they made in the russian market >> meanwhile, the nyse and nasdaq halted trading in several russia based stocks today. this comes as the russian stock market closed today and will remain closed tomorrow but u.s. based russian etfs continue trading joining us, former s.e.c. chairman jay clayton during his time as chair, he was

a member of the financial stability board, the global organization of central bankers and market regulators dedicated to preserving financial stability. it's great to have you thanks a lot for joining us. just kind of go through the set of issues that let's say you in your former role would have been contending with today, whether it be, whether u.s. investors are properly protected from maybe prices that aren't really reliable based on closed stocks overseas or for that matter, just the sanctions on russia's participation in the s.w.i.f.t. network and how that might impact us. >> well, mike, thanks. and great to be on with you and sara look, i think you hit it let's start with investor protection in times of uncertainty like this, one of the best things you can do for investors is keep markets functioning. and we're very early days post sanctions and very unfortunate

underlying events. but markets have functioned well today. with the imposition of sanctions, the western markets have had price revelation like we would expect. now, sara went over very well in the beginning all of the adjustments that are going on now in response to those sanctions. and in response to those underlying events. what individual actors are doing. and in that sort of stability area that you asked about, those are the types of things that you think about. we have our first order effects from the sanctions what activity can no longer take place, and then what is the market reaction, the market participants' reaction going to be to that that is going to unfold over the next several days. but i am heartened so far with all of the uncertainty that exists away from the markets, that still exists, that the markets have functioned well through today.

>> you know, we mentioned the etfs where you have a u.s. listed fund that may hold through its coverage of an index a share of a stock that's not trading overseas, yet the etf trades here. talk about the considerations that go into that. obviously, whether allowing it to trade based on some estimated values or exactly how, what investors should know about that process. >> well, they should know what you said, that those prices are not as, how do i say it, as perfect or as close to perfect as they were several days ago when the underlying instruments were trading that said, in situations like this, and we have a history here, in situations like this, so far, and i think the past helps you here, it has been better for investors to allow these instruments to continue to trade so they can get in and out of them rather than to have their funds frozen or to have

some other alternative >> it was just announced that janet yellen, the treasury secretary, is going to preside over a stock meeting, which includes a number of the regulators across the government, including s.e.c. chair. take us inside that meeting. what is it going to be like today or tomorrow whenever they hold it? and what sort of issues are they going to be flagging and prepared to address? >> well, let's give them the credit that they deserve that is this isn't t-0 this may be t-0 for sanctions being imposed, but i am certain, and the people who handle sanctions and have experience with iran and other places have been working around the clock for a number of days if not weeks thinking about this. i have no doubt about that and now, they design those sanctions to have the maximum impact on the types of activities we wanted to halt or slow down while allowing the

types of activities that were necessary to continue, whether that's humanitarian aid or lack of impact on markets outside of russia, but now they're doing to say how did we do on designing that and what's going to happen going forward? are there pockets where we need to provide additional liquidity? those types of questions that's what will be going on, not only at that meeting but leading up and preparing for that meeting >> and when it comesto excluding russia from the s.w.i.f.t. system for global bank communications, what might be some unintended consequences of that? there's already been talk, russia has some access through china to some networks of this type and maybe it leads to creating some kind of a parallel type communication system. in other words, to where the global financial system becomes less integrated and transparent. is that something you would have to pay attention to? >> sure, and mike, let's be clear.

this is something that is -- sanctions are something that are very powerful. a good tool of economic leverage but they're imperfect. two ways in which they're imperfect is that when you sanction an actor, that actor may have an amount of bad activity that's significant. they may also be doing good activity, getting funds to pay people their wages as well as activity that you want to shut down so that's one place where they're imperfect. another place where they're imperfect is what you just identified, that there's no obligation to use the s.w.i.f.t. system for international money flows. there are other ways to accomplish international payments the s.w.i.f.t. system has been fantastic. people gravitate toward it because it's such a wide network and works so well, as we all know, the broader and more connected a network is, the more valuable it is but i expect that there will be people who are trying to work around the system like this just as there have been in the past and that's another thing that

the people at the treasury and the fsoc will be monitoring. >> very technical, jay we're glad to have you on board. thank you for joining us and please stay close. >> all right, thanks >> jay clayton, former s.e.c. chair. >> zoom shares take a look, under pressure, after issuing weak guidance moments ago. up next, an analyst tells us what he wants to hear on the conference call. zoom shares are down 3.5%, they were down 10% on a weaker outlook. outlook. they hav actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. we'll be right back. join the pursuit of outperformance at pgim. the investment management business of prudential.

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time now for a cnbc news update with shepard smith. >> from the news on cnbc, here's what's happening a russian convoy reported to be at least 17 miles long making its way south toward the ukrainian capital of kyiv. in the mix, hundreds of armored vehicles and tanks along with artility and other support vehicles a senior administration official tells nbc news russia's goal still appears to be to encircle kyiv in the coming days. there are new and widespread reports of bombings and missile strikes killing civilians in ukraine. the top prosecutor at the international criminal court opening a probe into possible russian war crimes or crimes

against humanity and russian soccer teams now banned from international competition. governing bodies fifa and uefa making the decision today. the effect, russia will not be able to qualify for this year's world cup. the move comes as the international olympic committee is urging sports federations around the world to ban russian at leads and officials from all international competitions >> tonight, we'll take you live to the busiest border crossing in poland, as tens of thousands of people fleeing ukraine. plus, we'll talk military tactics and diplomatic strategy with general david petraeus right after jim cramer, 7:00 eastern, cnbc. mike, back to you. >> shep, thank you very much appreciate it. >> zoom video, meantime, falling, though after his lows after disappointing guidance and earnings offset beat what's your quick take on the numbers? obviously, guidance somewhat disappointing, but the stock is a little bit resilient here. is it just down enough

>> i think the actual results were a mild beat, but the guidance was quite disappointing. we were looking for about 16%, 17% revenue growth next year it looks like they're scratching very low double digits, and off about 80 or 90 cents relative to the non-gap eps expectation. i'm not surprised it's not completely imploding from here if you look at the stock chart, it's been a black ski slope. i think that for a while when the stock was in the mid-100s, you had to justify the valuation going out to 2035 and looking at a total addressable market of $100 billion out of the box, and i think right now, the stock is just discounting fiscal '25 type results. that being said, everyone is going to have to pull back these numbers. i'm not terribly surprised on

the downgap eps guidance being disappointing because they're invested very heavily in areas like rnd because they're trying to become more of a platform company rather than just doing meeting. i respect the management a lot, that they're very innovative, but the revenue guidance is certainly disappointing. it looks like they're getting some traction with higher end customers but they're clearly hitting a bump in terms of covid rolling off, and i think some of the investment initiatives they're undertaking, takes a while to get the benefits. >> and they're trying to make the case for hybrid work environment. matt, have to leave it there thanks for your quick take a lot going on today we appreciate it into the call. >> up next, we'll take a closer look at how much damage has been done to stock valuations amid the recent market sell-off, and later, ken rogoff on how the global economy will be impacted by the massive sanctions slapped on russia and what

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another down month for stocks down, s&p off about 9.25% from the intraday highs let's go back to mike to look at valuations and how far they have fallen for certain stocks. >> yeah, in some ways that's been the main project of the markets this year, to compress valuations as we have tighter financial conditions, economic and earnings growth slowing down, coming off a high historical valuation so here you have the nasdaq 100. it's coming down from 30-ish to

25-ish same thing with the s&p 500, by the way, it bottomed intraday last week at around 18 times forward earnings that takes you back to 2018 in some respects. small caps still way cheaper than the rest of the market. also kind of fun, berkshire hathaway relative to the nasdaq 100, just now nosed ahead of it. it's more of an asset play, but it is interesting what kind of market are we in, a quality value market, berkshire leads, or in a secular growth, that's when the nasdaq 100 would be the leader >>mike, you summed it up well. >> the biden administration expanding sanctions against russia today, coming up, former russia today, coming up, former imf chief economist ken rogoff on the global ripple effects

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effects for russia's economy for starters >> for russia's economy, it's pretty dramatic. they have work-arounds about not being able to use the international methoding system, s.w.i.f.t. they have some workarounds in the short run for having the central bank reservess.w.i.f.t they have some workarounds in the short run for having the central bank reserves frozen it makes them very vulnerable, there's no question about it of course at the same time energy prices are blowing through the charts that's their main exports, something to counterbalance that with >> do you see a potential debt default here >> in a way in our freezing the assets of the russian central bank they could argue we've done a debt default to them no russia is so strong. i think the real concern is what

will putin do if our sanctions don't hurt, maybe he won't do much quickly, but if we are successful and really tightening the screws and they have really broken the glass and done some amazing things, sanctioning the central banks this way, that's something that often is even done in wartime and if it doesn't do that much, well, maybe he'll take a while to react. if it does, i don't know what his next move is clearly a very emotional, erratic person and he doesn't like to lose i think he's more likely to double down than to back down. and so, ken, that implies you think the main risk of the economic measures are whatever putin might do in terms of militarily or through other means of aggression or do you mean economic spillover effect

>> cyber is the first thing he can do russia is not a big economy. ukraine is not a big economy cyber war is a real thing. i believe we can do more to russia than they can do to us, but, you know, it could escalate that's been the concern of cyber that shouldn't happen, but what if it did? it's hard to know what he'll do next again, i don't think he's prepared to lose and we have to make him lose it doesn't necessarily end here. >> so it doesn't sound like you're particularly worried about the effect on the global economy at this point, is that right? >> well, the global economy is in difficult straights with inflation out of control, the central banks needing to tighten. this creates a lot of geopolitical uncertainty, which is eventually going to discourage consumers, investors.

this is not over yet we're just at the beginning of this so what really matters, will the situation stabilize? i think if it does and we're left with these sanctions it will certainly be bad for the global economy, higher inflation, lower growth, supply chain. but it's not necessarily going to be worse than things we've been experiencing already. >> you know, one of the initial, maybe unexpected, outcomes here is the german government saying they're going to ramp up spending on its military and perhaps even having to accelerate some energy infrastructure spending and do some deficit spending. i mean, germany has fiscal space. maybe other countries do, too. does that change the equation much at all whether it's for european growth or anything else >> well, i think a move we have to do back is to stop defunding

the military and try to do something particularly in europe europe spends vastly less than the united states and it's completely incoherent and ineffective. they need to do more probably we do also energy independence the environment. environmental sustainability is the most important thing you have to get there. you have to have a strategic plan and germany especially but the whole world has left itself wide open to this if russia were to cut gas off to germany and italy they would be thrown into deep recession similar to what we started off with covid >> and finally, ken, what does russia do about the currency issue? it's lost 30% of value today and more than 40% so far for the year they don't have access to some of their major reserves to prop it up. where does this go

how does it spiral and is bitcoin a viable alternative for them >> so there's a playbook for emerging markets when their inflation is out of control. you force people to convert their dollar assets into rubles. you don't necessarily allow bank runs but you don't allow people to withdraw hard currency from the bank and russia is positioned to do all of these things. absolutely we're already seeing, i think, higher activity and cryptocurrency markets, which are already active in russia and ukraine. but they're not really developed enough to be a complete end around this. i think it's something that will accelerate but for the moment just at the margin >> yeah, not just yet anyway ken, thanks a lot. i appreciate having you today. >> thank you thank you for having me. >> all right netflix has a big decision on deck the streaming giant could be forced to broadcast propaganda or pull out of russia

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future in russia in question julia boorstin here with that story. hi, julia. >> reporter: well, mike, netflix is pushing back on a russian law that requires netflix and other streamers starting tomorrow to broadcast 20 tv stations operated by the russian government to those russian subscribers. those stations could be used to spread propaganda. netflix telling us, quote, given the current situation we have no plans to add these channels to our service. no comment on what repercussion that is could bring. facebook going beyond the prior move to fact check from russian state-controlled media saying the company is spojing to a number of governments and the eu to, quote, take further steps in relation to state-controlled media. given the exceptional nature of the current situation we will be restricting access to rt and

sputnik across the eu at this time now russia has been limiting access to facebook along with twitter. we'll have to see if it restricts those in response. >> julia, thank you very much. that will do it for us tonight on "closing bell." thank you for being with us. "fast money" begins right now. live overlooking new york city city times square i'm melissa lee. tonight on "fast" the low is locked in. that is the message tonight from tom lee, why he thinks the worst of the selling is over for the near term. shares of zoom video, the stock off its after hours lows the company's call just getting under way. we'll break down the