10,000 same price this thing's going to move a lot further to the upside, i think i own them. >> all right so does jim lebenthal. sure he's watching. >> weiss, too. read your notes! >> okay. i get cha. guys, appreciate you watching. keep our eye on the markets for certain. look now, dow good 55. "the exchange" is now. thank you, scott hi, everybody. i'm kelly evans. ahead this hour stocks losing steam as putin says russia's military operation on ukraine is going according to plan. we're stabilizing that like scott says. dow's up 55 on fresh reports russia and ukraine agreed to hold a third round of talks. all as fed powell wraps up his second day before congress saying it's too soon to know ow the ukraine pressure could

affect plans and winning over consumers r reeling from high gas prices first the latest on these markets. dom chu is standing by with numbers. >> you mentioned civilization characterizations of the market. building on gains from yesterday, looked positive strong from yesterday. dow jones industrial up 40 points roughly 0.01 of 1 percent, green, modest. s&p 500, 4383. last trade down three handles flat on the session. nasdaq composite up 115 points almostaliti ali little over thre quarters of one percent. talk points, in percentage terms highs of the day opened at nasdaq up one-half of 1% down 1.5% at lows. context where the market is now hovering towards lower end of the session still off session lows

focal point remains for many traders what's happening with the upwards surge in oil price 0s moderating a bit today west texas interimmediate off today. the general price range today. and down 1%, ice brent crude nat prices down and chevron up 1% of high es. gold star next to that shifted too fast would have given you a gold star because chevron hit a record high and also for kroger shares. record high better than expected financial results. kroger, one of the big grocery store chains back to you. >> nice 10% pop. dom, thank you. not just powell we heard from today concluding his two-day testimony before congress another fed official emphasizing the need for higher interest rates. steve liesman has details.

>> yeah. kelly, start with powell first year in focus on the economic impact of the ukrainian war, inflation, the way it combined to impact u.s. monetary policy here's fed chair jay powell answering directly when asked the question about how it all combines >> before the invasion we were planning to raise rates this year planning to -- to make a series of interest rate increases that is still the case i think it, right now, in this very sensitive time where uncertainty is highly elevated and we really don't know which way things are going to go, i think we need to move carefully. >> how far is the fed prepared to go? senator shelby asked powell if the fed was willing to go as far as paul volcker did in the '80s, squeezing down on the economy to wring inflation out. >> i knew paul volcker and pretty sure i saw him oftestifyn

this room. one of the greatest public servant of the era and hope history records the answer to your question is, yes. >> you're prepared to do what it takes without any reservation to protect price be stability >> yes. >> that would be a departure of what you've done >> dramatic moment added the war means the supply chain bottleneck fed counting on made it worse comments after it was said on considers nbc. possible the rate may have to raise rates above 2% to 2.5% to combat inflation, not a fed in the mood for dovishness now. >> steve, off the boil when it comes to rate hikes but focused on the issue not letting inflation persistently above 3%, which the market signals could

be next three years to come? >> i think that's right. three, four rate hikes baked in through the summer, and i think the fed chair will look around and see if he gets any help from the prediction, different forces bring inflation down and if he doesn't, i think -- the possibility, mester said it, powell implied it as well. could go 50s if feel they're losing ground in the fight against inflation. you have to sort of open your eyes to the reality what's happening in ukraine now is not helping the fed as inflation mounts. >> very much so. absolutely steve, thank you very much appreciate it. our steve liesman. i mentioned, the market is expecting inflation to be above 3% for the next five years you can see on the chart behind me expectations actually have risen since russia's invasion of ukraine. more what it means for investors and the fed bring in mark vandy, chief economist at moody's analytics. great to have you. at this point the fed what do do more than signaled to bring that

inflation expectations measure down >> well, kelly, i think partly because of higher oil prices a strong relationship between inflation expectations, certainly consumer inflation expectations also investor expectations referring to, like, the five-year break eastern inflation expectations they're up very highly correlated to oil prices if oil prices come back in, which i expect as the russia-ukraine events start to wind down going forward. hopefully that will happen, we'll see those inflation expectations come back in as well i'm not overly concerned at this point. now, if they remain persistent, if we stay above three even though oil prices are coming in and construction related to the pandemic starts to evade total supply chains perform better, inflation comes in that's a problem and i do think the fed would step on tbrakes harder.

end of the day, they worked really hard to gain credibility around the 2% target and not give it up easily. >> glad steve played policy change with shelby, quite strong seemed as if he not only took the point about volker really wanted to make the point, powell did, he will do whatever it takes. what does that tell you? >> yeah. i think he's setting a very clear, crystal clear, strong signal that, hey, look, a 2% target where we've been, are and are going to stay and do everything necessary to get us there as fast as possible clearly you've got all of these things going on with the supply side and russian ukraine a bit of time to get back to target but we are going back to target. cement down the expectations making it easier to get inflation down and to the target. >> what's the big deal inflation 3% or 3.2% over thenet

next five years. what would you tell him? >> presupposes the fed can calibrate things exactly right if we're heading towards 3%, inflation expectations going to 3%, unlikely where it stops and blow right past that and looking at 4%, 5%, 6%, 7% and a dreaded wage price spiral that affected the economy in '70s and '80s, paul volcker wrang out with very high interest rates and a severe recession. you know, 3%, in a landed plane right there and staying there, maybe. reasonable debate. not what's going to happen the fed doesn't want to see that. >> dry powder so to speak. to support that? you can only grow wages so much before people say, laying off workers, can't hire.

reach resistance point in the economy. what is the dry pouder that could allow this to just keep going and filling in on top of itself >> the economy is strong growing year over year, real gdp strength, economy growing jobs each and every month unemployment 4% and falling and a lot of savings out there the so-called excess savings done above which would typically happen if not for the pandemic my calculation, $2. trillion well over 10% of gdp a lot of dry powder. the economy can grow quickly and blow -- right now the economy i believe is at full employment. latitude there, but will blow past it. if we do, inflation will become an endemic problem more of an issue and fed will press on the brakes harder. >> in other words, if they don't act hawkish enough now, maybe -- we all understand why they want to err on the side of caution.

what's going on in ukraine don't do it now, could be a greater resergs later on >> exactly landing the economic plane on the tarmac now, tricky all the pandemic issues, russian ukraine. really complicated stuff i think able to pull that off. seems like the most likely scenario that we come into the later year and get inflation down to target by mid-2023, laid-2023. a lot of risk around that and they want to guard against the risk inflation stays too high and really have to stamp on the economy. we go into recession they want to avoid that at all costs. to do that, make it clear to investors, hey, 2% is the target going back to 2%. >> one final question here the spike in oil prices obviously is getting a lot of attention including from people who say we've never seen a 50% spike, whatever the number is, without recession ensuing. hour important is that metric to

you by itself and indicating that we could go into a recession? and if so obviously that would complicate whether the fed should be tightening in response to oil prices or actually waiting for them to do their own damage on the economy? >> well, it bombers me one thing for 100 or 110 obviously, get 150, kind of the daily peak in oil prices in 2008 all-time high. the economy will struggle with that we're in a very different place in terms of energy dependence and independence right? a statistic. go back into the '80s. almost 10% of the consumer budget went to energy. now it's maybe 2%, 3%? the energy intensity of the economy is so much lower than before producing a lot of energy. it doesn't mean the same thing as in the past having said that, kelly, if we got into like $150 a barrel oil, for their, other things going off the rails, could be

considered as well, there's a problem. >> exactly thanks good to have you on. appreciate it. >> thanks. mark zandi with moody's analytics. chicago fed president on "squawk on the street" tomorrow morning and touch on these issues around 8:45 a.m. eastern time. turning now to ukraine heavy shelling from russian forces continuing in different parts of the country these images here are damage in the country's second largest city kharkiv president putin saying the special military operation in ukraine is going according to plan and reuters reports both countries agreed to hold a third round of talks soon that could involve a possible temporary cease-fire during evacuation violence expected to tick up and putin believe his hand strengthens as russia seizes more of ukraine. and ask to support ukraine and

ylan mui has the latest. >> kelly, the white house asking congress for $10 billion in additional relief for ukraine. that is up from the roughly $6 billion lawmakers talked about just a few days ago. half of the money would be directed towards the defense department the other half would go to more humanitarian relief. republicans had been worried that the military aid in particular would be taken out of the defense department's annual budget house speaker pelosi said all funding considered emergency spending that would be a move through the house alongside the broader government funding package that congress will consider next week. >> at the present time the fastest way for us to get the ukraine money is for us to have it on the, the, this legislation. so we hope we can just come to agreement to putting it forth. >> today pelosi also came out in

favor of banning oil and gas imports from russia. this comes after several senate democrats have backed this move including senator joe manchin, jon tester even senator elizabeth warren today calling for the u.s. to take action. kelly, this is a move the white house has been reluctant to take see if this moves the needle for the administration back to you. >> how likely would that measure be at this point >> seems unlikely congress would move on its own to force the white house's hand this is about building the pressure on the administration perhaps even giving them cover if they decide to move the u.s. has been clear they don't want to move ahead of especially the partners in europe already seen canada take this move perhaps the u.s. will be playingalities catch-up. >> thank you very much ylan mui reporting. coming up, a key weight on the labor market ahead of tomorrow's big job report. is this still a job hopper's market and shares higher after beating

revenue estimates sixth straight quarter. we'll ask the ceo about its impact to rising oil prices having on demand for evs nearing 200 charging stations across the country. a quick check on the markets heading to break fluctuating. dow up 79. s&p turned positive. nasdaq still down 94 we're back in a moment.

in another sign of a tight labor market weekly new jobless claims totals just 215,000 this morning with four-week average continuing claims hitting lowest since 1970 my next guest says it's good for one specific group of workers. maybe a lot but especially job hoppers. 26% of respondents say candidates held three jobs in the past two years and more than half say their candidates held at least two in the same period. for more joined by recruiter.com ceo. great to have you back here. it seems like the labor market strength from the beige book yesterday is broadly continuing. would you say that's true? >> i completely agree. thanks again for having me on your show, kelly what we're seeing, tie all the numbers together what you're seeing happen sort of last month, took everyone by

surprise, we think companies are overhiring stocking up on their talent the way, if there's a supply chain problem of semiconductors you're going to overbuy and overpurchase seeing companies that are able to financially do, instead of three hires make four hires knowing a job hopper is among one of those four. >> job hoppers, too, such a pandemic phenomenon. is it persisting or are people settling back into more traditional job lengths durations, or not? >> we actually believe while the great resignation will sort of taper off by the summer, and as the moody's economist said, the worker collar market will taper down also this year. we believe the job hopper economy is here to stay. people are, it's more, easier to transition from a job to a job certainliful we're seeing the rise of remote work. right? working remotely, my office sn change right?

maybe my email does, where i work doesn't actually change seeing it's easier to apply to a job, interview for a job and doesn't matter where i work were, we remove stigma of moving around from company to company, the job hopper economy is going to persist beyond even '22. >> sound great for workers, what about firms? that have to spend a lot of time training people then filling, con stactly back-filling roles >> i agree it's a huge challenge. you saw companies like goldman sachs and starbucks report numbers surprising in the amount of money they're spending on either hiring talent, retention, training, et cetera. we're going to see that. companies are rethinking how they build their benches of talent over-hiring of talent met with a global head of talent the other day saying to me we don't have a hiring problem. an attrition problem focusing on why people are actually leaving their employers today. >> you brought that up a couple of times with us, evan

focused my mind. realized looking out there more retention bonuses, efforts to keep people past the six-month mark and that thing. point out to people ahead of perform's report granular data, most in architecture, engineering, i.t. still strong anything with hospitals and health care. seeing high demand lower demand for telecom and consumer goods just the main macro concern here is that either the omicron spread would slow the job market doesn't look like that's happened obviously, maybe the economy weakens depending how the ukrainian situation plays out. too soon to know that impact meantime going pretty strong >> by the way, the other industry really saw a spike was automotive engineering is probably automotive engineering when you think about it probably this new, seeing that out of the state of the union. growth of manufacturing of automotive in the u.s. the recruiter index shows growth

of automatic in spikes of demand. >> regional trends you're picking up on? >> yes we have a partnership with a company that tracks transitions. so the new york area, new york, new jersey, pennsylvania actually have the most number of open jobs today. virginia actually virginia beach the city with the least number of transitions so if you're looking to hire in the new york area, going to be under bigger challenge find a candidate from virginia beach, probably less likely to leave. >> wow very interesting finally on wages, going to become such a cruel part of the conversation hinted at pressures we're seeing signs of those wage pressures abating? >> no. still seeing wages increase month over month seeing recruiters, more and more recruiters focusing in the $40,000 and up jobs. so those are really the more knowledge worker areas seeing wage increase across the board. really aligning that

still, in the top three priorities, remote work is still there. still seeing remote really being a huge percentage of the jobs that the recruiters are looking for. that the candidates actually want. >> smiling a little as you say it anecdotally more people asked to e go back to the office and getting back on those it trains, in their car paying $4 a gallon to fill up, reminded what that schedule looks like seeing more interest from friends and neighbors in those roles that could absolutely drive it great to have you on today thanks so much. >> thanks, kelly. the chairman and ceo of recruiter.com. still ahead, the aerospace and defense etf up 7% this past week biggest movers northrop grumman, and all up 10% since the invasion of ukraine. military spending and who will see the quickest sales. and potential donors looking to help ukraine. tell you how to protect your

wallet and avoid falling for fake fund-raising campaigns. heading to break, boeing and salesforce leading the dow heat map. sorry. worst performers, walmart and honeywell chevron leading the way. back in a moment. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business.

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utilities best performing sector today. tech and consumer discretionary the big laggards utility's up 1.8%. movers this hour coca-cola, altria and hormel flip side, snowflake shares falling after the cloud software company reporting slowing revenue and down 17% looked worse last night. bj's plunging down 15% making on pace for the worst day ever. the gig economy stacks struggling today with a takeaway fiber, ooper, lyft in the red. uber down 5% today and 23% year to date making it the worst quarter the company to see since 2019 get to rahel solomon for a cnbc update. >> happening this hour, california governor gavin newsom pose add plan to force homeless people into treatment, targeting

severe mental health and addiction disorders. ukrainian president zelenskyy challenging president putin. a third round of negotiations does not seem promising. second round ended today with little progress towards end to the process. and companies saying, no, with business with russia. that's tonight 7:00 eastern. and a huge fire on i-95. daytime views of the aftermath visibility near zero when the crash happened due to heavy fog and prescribed burn taking place nearby. >> geez. i don't even know what to rahal, thank you. and my next guest is

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not give. welcome back to "the exchange." joining me, head of global market strategies at wells fargo investment institute played you as sort of a contrarian, paul let me start on earnings growth slowing. many point to this as rock solid to hold on to in this crazy markets. why does that one give you pause? >> i wouldn't say so much pause. i mean, the economy was going to slow anyway. even before all of this mess in eastern europe we think an earnings growth rate of, level of 235 dollar as share, that's quite reasonable after last year's, and so when you think about that, that's pretty good, risk, inflation inb

so much volume of seams no longer covers that. >> fair enough and there are so many. tell me in broad terms why technology is an area between interest rates and all the rest going on now you are looking for an attractive entry point? >> we've been overweight in information technology and comp services a little while now. interest rates, yeah, gone up, but still pretty low still ten year under 2% here and we think as the economy rebounds, you start to get past some of this uncertainty about the fed, nine interest rate hikes. we think too many to expect from the fed this year and think the market dials back on interest rate expectations as the ye progresses that, plus good earnings possibly clearing out tech names with really high multiples and going into the spring we think attractive multiples, maybe

clearing, regarding the fed. hopefully some additional clearing regarding russia's invasion of ukraine. we think tech sets up nicely to end of the year. a quality sector. >> can you be more specific? that's a catch-up term in other words, you know, having exposure to zoom video is very different than nvidia, than if it's apple not even a tech name, but you know what i'm saying >> fair question we're going to stick with information technology obviously. a current favorite of ours happening, the economy is becoming more technologically oriented anyway. something on our radar to watch for going forward would be consumer discretionary, perhaps. already got com services's vugalled, too. we think value for investors there. particularly, com services, information technology maybe down the road something like a consumer discretionary eventually. >> why am i not hearing a lot

about industrials tend to outperform at this space of a rate cycle materials, given what's going on with commodities maybe transportation maybe energy right? those are some of the areas certainly down the energy side hearing a lot more investors interest these days? >> you know, it's -- take energy in particular. that's a tricky sector right now, because you've got oil prices obviously very high compared to be recent history. same time you've got a lot of discipline opec will be to increase production slightly. that creates a situation where there's not a lot to be made from, almost by choice almost by political choice by shareholders in these energy companies and by managers themselves it's open to question how long these energy gains can sustain themselves imagine an offrmp for russia out of ukraine and then start to see energy flows back into europe again. how quickly will energy prices

come back down a question investors need to ask even as scratching heads why they're not drilling more under these circumstances. again, a tricky sector, government policy not all that clear. will the green energy policy remain in place? will the biden administration blinken final allow firms, incentives, to go drill more not clear either high energy prices by themselves, not the reason to be favorable energy. >> i imagine if you're a little on the dovish side in terms what the fed might do and where rates are that doesn't make you want to jump into financials buy both feet right now jrchlt right. currently overweight financials. that's really something that's under the radar. excuse me. under the microscope getting my metaphors mixed up and the long end of the curve. tends to flatten more. imagine inflation starts to dent people's purchasing power? then you could see long end of

the curve come back doug a little fed's raising rates. may a worry sign for the economy, too remains to be seen a risk right now financially. >> and what would you say to people overall in terms of getting exposure now, waiting a couple months? see how the ukrainian crisis resolves itself? >> a great question and one our clients ask the most look, if someone's a long-term investors we think these fog of war and fog of fed questions clear themselves up probably sooner than later, at least from an investor the standpoint that mean as long-term investors should think about, okay certain amount of cash need that for living experiences. beyond that, maybe ready to invest it? we don't know where the low in the market will be hit some lows. don't know whether there "the" lows why not put it on an incremental

basis? long-term investors makes a lot of sense more of a tactical investors, 6 to 18 months, a good place maybe to be patient. maybe even sit on some cash for a bit, because you're just not going to get a solid and firm place to say, yeah, that's the bottom now let's buy. that point is still to come, probably. >> so again, you like cyclicals, quality large cap and mid-cap over small and emerging markets. a little bit of a debate point lately paul, leave it there great to have you on thanks for your thoughts today paul christopher from wells fargo. coming up, u.n. saying a million people fled ukraine since start of the russian invasion the ways to help and how to avoid charity scams. that's next. before we go to break, do show-and-tell. show you a chart and telling story. shares of best buy on pace best day since august despite missing sales estimate and guidancestres

still retailer lower short-term forecast expected after two years of unprecedented demand. consumer electronics uniquely has seen two solid years of really elevated demand. i think what we're pragmatically seeing, look into next year we expect that to likely take a little step back again, thinking about how much the industry has grown how far we are versus where we thought we would be. we didn't think we would hit $50 billion. 2019, that was tgeart for 2025 and markedly surpassed that der control. voya. be confident to and through retirement.

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take action against russia announcing temporarily closing their owned and operated nike stores there amid all the turmoil, people around the world are looking for ways to help ukraine during the russian invasion share sharon epperson has more. >> reporter: as fighting between russia and ukraine intensifies, millions of people around the world are eager to donate supplies and money to support humanitarian relief efforts. >> i recommend going through an established charity. >> reporter: nonprofit expert doug white says overwhelming desire to help those in need also creates an opportunity for scammers gofundme's president said the cloud funding program has a team of 80 people to vet individuals and organizations fund-raising campaigns. >> it is is a reality, fraudulent funds are a part of any crisis like this. >> how are you assured your money is getting to the people

immediately? >> work with payment processes partners local charity organizations, collaborations such as the u.s. state department to understand what are valid resilients on the gr ground. >> reporter: they've raised over $5 million and refund donations misused. still, many experts say to stay away from appeals from individuals. stick with established organizations that know how to get aid to people in a crisis zone. also, beware of new charities. they may have good intentions but no idea how to deliver aid officially before responding to a request for donations, read reviews about organizations on the better business bureaus wise giving alliance. cher charity navigator or charity watch websites. >> scamming is so sophisticated. can seem so real and seem so heartbreaking. do not fall for it. >> reporter: if you suspect a scam notify your state attorney general or secretary of state's

office report it to the federal it trade commission, too, as well as fbi's internet crime center increasing possibilities scammers may prey on potential donors, kelly? >> great point what do you do if you think you might have donated or given crypto to a cause in retrospect you're not sure about? >> reporter: make sure you go to the organization's website a trusted website. don't just use the social media link make sure you're on that organization's website maybe your donations through there. don't just take an individual's word for it. >> good point about links circulating on social media. people take advantage. should we believe when the people giving the funds to say 100% will be used to support that cause >> reporter: there are administrative and other fees taken up from your donation. if you're paying by credit card you'll have to pay a payment processing fee likely. that's something to keep in mind 100% of your money not likely

going straight there, but most of it will, and you need to check out some of these resources like charity watch, charity navigator and the better business bureau making sure you understand how much of your money actually goes to the relief effort. >> if they claim that, might that be a sign of a scam in other words, we know legit ones can't say that? >> reporter: a red flag. absolutely. >> sharon, great to see you, by the way. here on set, our sharon epperson. shares higher on strong earnings and guidance climbing 6% over the past month bit still down this year will spiking oil and gas prices be a boom for evs or supply asabbares hold them ck i k out that, next. ♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help.

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welcome back everybody it shares of ev chargepoint higher after beating estimates and gave better than expected guidance for fisk many 2023. rough start are the year for almost everybody shares up over thepast month and alternative energy in the spotlight as inflation and ut ukraine invasion sent gasoline prices soaring's joining me, ceo

of chargepoint pasqual romano great to see you again any indication of an uptick in demand >> thanks for having me back, kelly. appreciate the opportunity we've seen tremendous demand for electric vehicles which in turn drive demand for our products throughout the year. even before, even before all the global events that are impacting oil prices so i think consumers already understand that driving electric is a better way to drive. >> same time, the economics. as i was driving in this morning, lowest price i saw to fill up $3.73 a gallon of course, there's a pinch there. people might look to evs take a tesla model three, not the cheapest but as an example, priced up over $6,000 over the past year. either way you fay higher costs. know what i'm saying

>> yes/no. i actually, the sticker price on that particular model may in fact have changed but over the long haul, the total cost of ownership to a consumer in an ev is just fantastic. lower maintenance cost overall by a large margin, and fuel mar fraction, a small fraction driving on fossil fuels. what i think is really driving the price increases is production capacity. the demand from consumers is higher and you've seen many raise the production capacity on electric vehicles. >> absolutely. we know the wait limes are what they are and in some ways the part shortages and the problems will only exacerbate that. what can you tell us in the thick of the summer drivering season what does demand look like for the stations you

deploy what are you seeing now and what should we anticipate in the months ahead >> we reported yesterday year on year growth for the year that just ended 65% growth. midpoint of guidance range next year is 96% growth year on year from last year to the year we are in and we kept up with demand generally as the demand has escalated just very quickly for our product and proportional to the new evs coming on the road and being mindful of the supply chain impact. >> on fleet side with interest picking um seems like a bullish argument for the e v players and people roll the eyes and go, yeah, okay, fleet sales is least

sexy and the sign that the industry is maturing. >> i think for all of us as consumers we want to see fleets electrify because the cost structure is built into what we purchase so it affects all of us especially in this inflationary environment. would be nice to see counter pressure to that while it is not potentially the most glamorous thing to think about it is a very good business for us growing very quickly. at it is at an earliest growth stage due to availability and expect it to get to 100% electrification faster than passenger vehicles with a business buyer and they think in dollars and cents and driving

electric for a fleet is cheaper. good business for us a software company through and through. hardware is the component of revenue and see that as a complex software environment for us to basically provide a lot of great software and drive shareholder value that way. >> the gross margins did grow in the quarter i think year on year where do you see that -- will you be under pressure? you are a software do you expect pressure >> no question we advise investors that in this coming year baked in already to the guidance provided on gross margin to see likely about a six-point head wind. meaning if we didn't have the supply chain environment that we all have - >> wow. >> -- we would do based on what

we see six points better pretty significant. >> big chink to look forward to or lament they miss out on right now but everyone's dealing with it thank you so much. >> thank you. up next, the defense index lower today but gaining momentum the names making the big moves and how much room is left to run -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ ♪ ♪

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welcome back the s&p, aerospace and defense etf lower today as the goe -- morgan >> that's right. you see the names lower today after more than a year of underperformance defense stocks in general this year surged with the biggest

names up double digit percentages. for investors defense spending is key as the u.s. and allies begin to pledge more money to weapons and intelligence some betting military equipment spending to grow 50% over five years. near term raytheon and lockheed see a bump with javelins to ukraine means restocking l3 harris seeing sales of radios longer term lockheed's fighter jet could see more international orders and the helicopter initiative likely now to get priority with the program competition playing out between two companies currently. funding for modernization is in place and benefit northrop grumman and others and not to be overlooked helping i.t. names.

keep an eye on space russia's space agency saying to stop servicing and supplying rocket engines to u.s. northrop and lockheed. ual saying managing the transition to the vulcan launch system all engines for the flyout are safely stored the factory in alabama this puts focus on the american rocket engine manufacturers like blue origin and aerojet rocketdyne >> i was going to ask more from the idea of elon musk and the cooperation that it requires just to get into space or servicing the international space station is a different issue. >> sometimes there's

intersection military side where space is concerned. commercial space where spacex is falling into that bucket with a broadband service rolling out in ukraine right now and so key as we have seen issues around service interruptions in the region in recent days and then the third is civil question marks because the u.s. and russia have a longstanding relationship what does that mean for the iss? >> crucial thank you so much. that does it for "the exchange." "power lunch" picks it up right now. ♪ thank you very much. welcome to "power lunch. is the global economy walking a tightrope without a net. that's the question the market pro will answer this hour saying the russia-ukraine war could have a lasting impact on the investing landscape. first time e