average price and zoom video, nasdaq 100 stock most below long-term average price. by the way, the rest of the top eight on my twitter feed at the domino, running out of time here, just to let you know, interesting stuff. >> where's your romo pad >> i don't have it today maybe get it back for tomorrow. >> dom, thank you. >> got to go. >> thanks for watching "power lunch," everybody. "closing bell" starts right now. thank you, kelly and tyler welcome to "closing bell." i'm sara eisen here at the new york stock exchange. bill rally on wall street. stocks gaining back a big chunk of losses. dow up about 600 points. nasdaq more than 3%. oil fuels the spotlight again. this time, moved lower. >> and i'm mike santoli. driving the action, as mentioned, moving crude front and center again wti and brent tanking in the new eastern hour retreating from 13-year highs.

more on that ahead many of the hardest-hit parts of the market are seeing major rebounds today travel stocks soaring, and tech and financials firmly higher and bitcoin bouncing back in a major way as well. retaking the $40,000 level as president biden announced the look on crypto. and a great lineup of experts for you. plus, sanctions on the table for chinese companies aiding russia? we'll ask the commerce secretary when she joins us on a first on cnbc interview, plus talk to the ceo of adidas, today's earnings report sent the stock higher and suspending operations in russia. straight to the rally. breaking down big oil moves agency well. to talk about impact for investors keith lerner from truist start us off is this a technical bounce on --

>> technical aspect. market bouncing hard what seemed like potential support levels. talking about the support area for s&p 500 between 4,100 and 4 4,300. covered that it ground, migrated doesn't look like much 2.5 bounce in the s&p 500 relative to where we've been absolutely everything starts with a technical short recovery. action of the incremental worries news and hint of de-escalation, of course, cooperative moves in crude oil as well. longer term, also relatively critical junction points happening. s&p 500 with its 50 day and 200 day moving averages. we are at a point now, almost certainly in the coming days, looks as if the 50 day is going to cross the low this 200 day sometimesknown as

a death cross, a dark cross can, not necessarily the very end of a longer-term upturn but usually means dicier phase to the market talking about this period here late 2015, early 2016. you did get that happen, 50-day cross under a flat 200 day the way it is now. sort of hash things out for quite a while before any recovery of course, late 2018 and of course early 2020 a much more violent way, crash-like vertical declines as opposed to what we see here a deep correction happening flattening out 200 day have would monitor ten-year treasury yield not wavered much in other words, uptrend intract. in an acute recession scare we would be looking at lower yields not higher pap complicated calculus with inflation doing what it's doing. >> 3.5% on nasdaq. crude oil sinking today. look at it's down 12% op than

bring in dan pickering of p picpi pick pickering. is there a fundamental change to the supply and demand situation? >> sara, this is probably normal volatility in a very unnormal time down $16, $17. off the recent levels of 40. a fundamental story with possibility bringing more production from iraq and market spikes on the thought we're going to disrupt supplies. now there's talk of more supplies to come shouldn't be surprised prices of off some here. >> dan, keep trying to get at this idea of what's getting priced in at the moment in terms of ongoing supply disruption and what you know, how long that

this will be off the market? and if there's a sense growing something more structural happening with higher prices does that not change the math what opec might want to do >> i think it does back end of the curve, 2025. oil up to 70 that was 45 at beginning of '21. back end of the curve is telling you the market's tighter i think we're going squeeze out russian barrels over the next three, four, five years. look for more trustworthy barrels coming from western countries. we're going to have to have a higher average price if we're not going to buy from bad actors like russia. >> yeah. that certainly would seem to be the case we're waiting for some of the supply to come back on dan, got to run now. appreciate your time today dan pickering. >> thank you. meantime, back to the broader rally with nasdaq leading 9 charge up more than

3.5% joining us keith lerner, choice advisories co-chief investment officer. keith, good to check in. how are you reading action today? obviously still down for the week in the s&p 500. a lot to prove, but how would you characterize today's rally >> well, first, mike, and sara, so great to be with you again. very volatile last couple days and the last month a couple things happened you mentioned technicals we hit that earlier today and yesterday. saw a little bit of that buying come in even though we didn't hold yesterday today we held. other thing talking with clients is around 4,100 level 18 for s&p and fundamental support there. i think the combination of technicals, fundamental support and sentiment got so negative that people couldn't see any good news. a little good news has gone a long way as far as a rebound

still in a choppy range-bound market hit the low end of the market here short term. >> technology safe to dip into top performing sector in the market now 4% nasdaq rallying more than 3.5% brutal but the named chips, software, higher today even high growth ark innovation fund rallies about 5% right now. >> yes still overweight techs underperformed more recently, but using it as a bar bell strategy with energy actually underperforming today if we have a slower global economy and slower u.s. economy, then we think should be rotation back as you mentioned, these areas hit so much. lots of discounted even really small growth names down 40%, 50%. makes sense there's some money rotating back into these areas and again markets overall are down a lot after the hit we've seen since january

>> keith, you mentioned at recent lows trading roughly around 18 times forward earnings. >> uh-huh. >> seems to be a floor, since covid struck before that kind of the ceiling almost on the s&p or 19 was. does it build in, though, the possibility of earnings estimate ish rogues from here and do you expect that? >> well, good question and important one. so far forward earnings estimates continued to move forward for markets. entire pullback seen this year all pe contraction, fear you see some of these big cap companies pull out of russia that will have some type of impact maybe that moderates or comes down somewhat. i think overall, went through a covid pandemic our company showed such resilience and adapted expect they're going to adapt as well 18 multiple really solid support. think in a worse case -- not

worse case but as things deteriorate lowers multiples around 17. so far the market has been resilient and seen investors step intested. still think pretty firm. >> zooming ahead 3.75% thanks for joining us. after the break, adidas a massive boost on the back of earnings speaking with kasper rorsted dow is up 4,700 points. do you think any of us will look back in our lives, and regret the things we didn't buy? (camera shutters)

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today after the german sportswear maker posted latest earnings fourth quarter sales down the company gave optimistic guide ps for 2022 predicting sales growth of 11% to 13% for the year higher than what was expected. earlier today i spoke with the ceo kasper rorsted about the quarter and have to begin with the decision the company made this week to suspend operations in russia. have a listen. >> a global company it's important to make the right decision in the short and medium term and clearly due to the variance situation in europe, we need to take a position in russia that's why we suspended our business in russia despite the fact been there many, many years. we have 6,000 people and continue to pay our employees and looking at the greater context, need to protect employees and mitigate the situation through donations and emergencies to the entire region

in particular employees in ukraine and make certain we run the rest of the company forward to make sure we continue to grow as a business. i don't mean to sound cynical but it's the balance between the two right. russia is 2% of our revenue and still need to sure did and make sure that we further develop 98% of the revenue, which is the global revenue. >> an indefinite suspension? are there plans too rs to reture market when war is over? >> premature the war going on two weeks at this stage taking the right decision at this moment. i don't think anybody could have dreamt about that. we make decision where we are along with many, many other multi-nationals. doing that and of course will deal with the situation as the world moves on, but right now trying to, i would say, deal with that situation immediately in the right way and at the same time grow our company in 2022 by double digits and getting that balance right is very important. >> you did give a double digit

sales forecast 1pe 11% to 14% what's the driver? north america? >> saw a very, very strong growth in north america and latin america last year. 70% of the business, these three regions, we expect very strong growth in north miamerica and moving forward with new arrangements in place with jerry lorenzo, executing this year it skewed about gucci and north america a key drive and following a 17% growth last year also expected double digit growth in north america this year actually quite optimistic what the market will bring for us this year and despite all external factors. >> spending slow down in the u.s. seeing that? robust, stimulus and the pandemic as well >> no slowdown in consumer spending but we saw in fourth quarter and will see in first quarter impact of the factory

closings in vietnam closed completely third quarter and continued congestion of ports in the u.s underlining consumer spending is healthy in the u.s. and expect that in the year to come might get more inflation affecting prices but good consumer end resulting in double digit guidance in the u.s. >> how much -- higher prices what does that look like >> pricing in mid-single digits moving forth to offset costs coming, whether material next 12 to 18 months, very, very high growth in transportation costs we do have pricing power, but, of course, pricing power comes around with new, cool products our obligation making sure feed the markets with cool products where consumers say i really want that product. we are still in an affordable luxury space remember most of our products are from a shoe standpoint between $60 and $200

affordable product. >> supply chain issues getting any better or just for a while now going to be problematic? >> i think you have to differentiate in two buckets cloche herb of vietnam completely changed around. right now at previous levels 98%. previous levels. we continue to see disruption in shipping and distribution side i think that will continue throughout most of '22 and part of the wee for this year assumptions. we might get a slight, you know, normalization by end of the year, but still expect a quite disruptive year when it comes to shipping you can see outside a lot of large supports, particularly l.a. continue to have a buildup sometimes means product late getting into the north american marketplace. effects over medium term actually fills out we still see it. >> china has been a challenge for you. some of the other north american sportswear brands.

ahead of results you have a new head of the business over there. what's it been the boycott? >> 3% in china and mid-single digits this year growth. in the last 12, 18 months movement towards buying chinese and having chinese products and western brand including ours and meets could the chinese consumer there for the long term and relevant for the keeper. local chinese brands have outgrown the western brands but confident over time we'll continue to build a strong base in china through 3% in 2021 and expect to make single digit growth in 2022. >> finally, kanye west always ask you about the ez brand and about the controversies and latest one, kasper is a disturbing one with him posting that video sure you've seen it.

the peter davidson cremation effigy appeared to show him decaptain tated, kidkidnapped, buried alive a strong partnership and you don't necessarily agree with his actions and doesn't reflect values of adidas, is there a limit what he can do when it become as problem for your brand and principles >> of course look at it on an ongoing basis. he is -- he can do what he wants. i said before, we don't share all his views. an amazing designer. unbelievable relationship with kanye almost ten years and sometimes agree and sometimes we don't agree. i won't comment on the latter unstance, of course i followed overall i would say long term had a fantastic relationship with him and hope that relationship can continue, because he is a unique person globally and been a fantastic addition to our brand and we have a fantastic relationship with him despite some statements he make which we don't all

subscribe to. >> finally the sock. which has probably been disappointing to you lost a third of its value and given back all the pandemic gains seen in the market in your conversations with investors what do you think is the problem? what is the overarching sentiment? concerns about weakness in china and what are you telling those investors? >> no. they want to make sure we have sta stability in the outlook deliver on the outlook very, very hard hit in the pandemic, and would like to see consistent performance quarter over quarter of course, when you have supply chain issues it makes it more difficult. few analysts that actually doubt the long term opportunity and effectiveness of the sporting goods industry ten points this morning, i believe, see it this morning up to us to perform in a great market and in a growth market. grew 16% last year and growing this year, 11% to 13% and many companies would like to be that

industry and we continue to build market share and when we do that certain investors sentiment will be on our side. it is a fantastic brand. the opportunity sits with us. >> our thanks to kasper rorsted of adidas. said a lot there the stock chart is interesting it is down 30% the last 12 months nike down only 6%. poom na somewhere in between punished for supply chain issues for exposure to places like europe and china has bigger exposure there. that's been a weak spot for them, as you can see guidance today was strong expects china to grow faester than it is healthy in the u.s., that statement. double digit guidance. pricing power, mid-single digits and differentiating themselves with a strategy going all-in on the fashion collaboration. a partnership with gary lorenzo and with gucci a different strategy than nike.

>> it does probably get overly punished for being located when it is. in europe. people think it probably has more exposure to europe as a growth driver. 5% of the german dak german market's down, it's goin to get hit along with that. >> you heard 1% to 2% revenue in russia. >> absolutely. just under 40 minutes to the bell s&p almost up 3% on the day and nasdaq up 3.8%. still ahead, don't miss our first cnbc interview floating idea of secondary sanctions on chinese companies doing business with russia. heading to the a break, check out today's top search tickers on cnbc. the ten y-year yield, along wit

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campbell's soup, company says seeing strong demand across its portfolio and reiterated previously stated full-year fiscal guidance. stock higher today i did just speak with the ceo who told me it's about the outlook and what he said a disability into the year has gotten much better also said the two problems plaguing the company labor and supply are materially better as they look into the future. he says it's rewarding to see the recovery in the back half of the year and actually talk about growth of course, talked about wheat given the war happening in ukraine. he said we've got about 95% of our cost base covered, reassuring to wall street and watching things like fuel and logistics comps on higher oil prices but he said overall when it came to absorbing the inflation, they are able to pass some of it along in terms of price increases. on that front so far, so good.

elasticity stronger. in other words, consumers not turning their backs on the price increases. willing to take it he expects a little push in coming quarter, they will continue to raise prices still low historical norms the outlook is giving wall street confidence. a miss profits down but putting issues behind them. >> stock compressed a bit. >> innovation again. things like goldfish, back in supply star wars partnerships and spicy chunk soups. talking reinvesting and not just managing these issues gives hope. and coming up, michael pachter. today finally upgraded stock in a note titled "hell freezes over." he'll tell you why he made that

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time for a cnbc news update with rahal soloman. >> hi. what's happening at this hour, house speaker pelosi says democrats are pulling covid from a massive opposition clearing way for the legislation to fund government through september and

approve nearly $14 billion in aid for ukraine. a plane carrying former president trump forced to make an emergency landing after one of its engines failed according to multiple reports. the plane took off from new orleans flying 75 miles before turning around officials for trump reportedly declining to comment. and restoring california's authority to set its own tail pipe solutions and likely ushering in stricter emission standards for passenger vehicles nationwide. and in south korea, a new president elected. conservative candidate yoon narrowly won with less than a percentage point making it one of the country of most closely fought presidential elections. sara ra rahal solomon, thank you. and dow stocks lower,

chevron. everything else up 3% gain into the close nasdaq soaring up almost 4%, technologies and financials lead. straight ahead, michael pachter, a longtime network bear this is what he said before -- >> i'm convinced a lot of down side stick with my $45 target. i don't think that's a floor on the stock. >> more than ten years ler, at going to join us with a reason that made him finally upgrade the stock. we'll be right back.

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hell freezes over. what longtime netflix bear michael pachter of wedbush writes in his latest note to clients today. been a bear on the stock the last decade and changing his tune he joins us now to explain why michael, good to have you here you've been a good sport about this with the headline of your report i also think it's worth noting that in the immediate aftermath of the 2011 downgrade, the stock was weak you had a couple years call in the money, of course, been a monster to the upside since. however, with the recent decline, dead money for four years. why now to go to neutral what's your current thesis on the stock? >> my other title was often wrong, never in doubt. i never wavered, but, look, i was completely wrong about competition. i actually thought we'd get disney plus in 2012 and it took them seven more years before they launched. i was completely wrong netflix

ended up being very good at creating content i didn't think they'd be able to, and i essential didn't anticipate a global international launch all at once in 2013. those are the things that drove the stock higher i've been right for a long time that their earnings kinds of missed, misstwate what they are cash flow generation is. they barely have, you know, positive cash flow and they might do a billion this year i think that investors need to look at that content amor taization. it's clear to me they're on a hamster wheel content spend and i've been steadfast. my target's gone up for here to as they've grown faster than i expected, but it's true and i usual the cash flow multiple stock hit my price target. i have to be intellectually honest enough is enough there are what i thought were worth and that's a neutral the basis for the downgrade.

i don't see these guys as a high growth, high profit company but a low growth, extremely high profit but not hit 50, 60 times. >> yeah. looking now in the low 30s, perhaps multiple, i guess, if you want to do it on earnings. so what about this idea right now, and it's been kind of capturing a lot of debate around the stock, over potential for an advertising tier on netflix. executives not dismissed it out of hand recently's would that matter to the stock? >> i think it would help and reed hastings is the proverbial emperor. he do whatever he telled him and every once in a while he's naked and they tell him how good his outfit looks they let everybody binge and a humongous disadvantage tinkering with that. seen it with "stranger things"

straddling with quarters. long ago he said no advertising. we're a subscription model hulu makes about $10 a month in advertising. probably what netflix could generate do they make more money advertising or chargings $15.59? it's a push. when only charging $10, maybe it made sense to advertise. i think they can't really pull this off and make any more money. $5, $6 a month plus advertising. that's a push. what's the point >> michael, on you reflecting what was wrong about the calm. mike was being generous. it was a bad call over the last decade you suggested the other cable companies were slow to catch up. to announce their streaming services and that was the reason disney came along later than you

expected hawaii happened now? now that they're all here and the streaming services are investing a ton on content and diversifying themselves. did that change the game for you on the competitive landscape >> i actually think it's a race to the bottom. your substituting and average $85 cable bill plus ads for an average $12 streaming subscription and even if we subscribe to four, five different services, there's less money in the system. i actually think they're all stupid for competing this way. what they should have done windowed the content, pulled it off netflix so netflix isn't a substitute for cable but already let that horse leave the barn, as they say. i think what's going to happen is you're going to get competition for eyeballs and wallet, confusing people people don't know what channel they're on and competition for content. disney bought fox to keep that

content off the network and it's never going to be there again. and new creation more expensive and not quite as good. probably the same success rate but lots of bad content produced truthfully, consumer wins. price goes down. a lot more choishgsce but have o figure out what to watch and when only '883" and "yellowstone" name something on -- >> "paw patrol movie." >> i don't know -- my kids of 22 i missed that one. >> all right >> it's the reason i signed up. >> absolutely. a lot of people signed up for that reason. >> disney -- no. it's nick. isn't it >> nickelodeon, yeah don't worry. we do a lot of disney. >> can't call my two daughters got to run, michael. appreciate it very much. catch you again soon maybe when you upgrade to a buy. coming up, crypto stages a big rally and travel stocks

surge as oil prices plunge we'll break down the biggest moves next in the market zone. plus eric johnston making big calls about the market and all pretty on point. >> actually going to see a pretty material sell-off over the next six, seven weeks and see more follow-through of sell-off in the coming days. we remain bearish and down side to the market. at this point in time we think we'll see a sharp rally from here over the course of the next month, and we saw part of it, that today. >> he will join us next with what he sees in the markets coming up later on "closing bell." to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim.

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welcome back a great lineup coming your way second hour of "closing bell." talk to cantor's eric johnston including prediction in january of a pretty material sell-off over the next six to seven weeks. commerce secretary joining us to discuss the idea of secondary sanctions guess the chinese companies doing business with china, whether that could happen and ceo weighs in on a big spike for kcrypto and how crude price koss make your next vacation a lot more expensive first, about 13 minutes to go in the trading day. now in the "closing bell" market zone joining us today, ceo josh brown kick it off with broader market. stocks staging a nice comeback after a multiday sell-off near session highs now. s&p on track for best day since may 2020 josh, every sector higher except for energy technology is roaring.

how much stock do you put in a rally? >> i hope you like comedy as much as i do, because today is hilarious. it is a complete resitation of everything going on. like opposite day. everybody sector is green except energy utilities and defense are flat oil is getting smashed down 11% or so. wheat fell 6%. exxon chevron, connoco down big and financials doing great stocks couldn't get arrested the last couple of weeks jpmorgan having a bg day on long bank of america, wells fargo even credit card names big tech up. semis up bio techs are up opposite what we've been seeing. you have to ask yourselves, has anything materially changed, or is this just one of those

countertrend rallies that gives you the opportunity to unload some of the stuff that been hurting you the most so if you're in any of these areas of the market, and you've just watched them go down nine, ten days straight, and today they look like they're going to go out at the highs, do yourself a favor. ask yourself, is this the portfolio i still want to be in when i wake up tomorrow? if this dream wears off and we go back to the reality of tuesday, and if the answer is, no you have an opportunity to do something about it that has been the winning strategy this year using days like today as a chance to fix what's been ailing your portfolio i hope our viewers will avail themselves of that >> certainly agree with you, josh you know, a tricky part to that, though, is, if you look at your portfolio after an up 3% day and a lot of stocks hit hard bounced already. might say i want to own them tomorrow if not giving it up

again. it tactically speaking it's tough to know the bets you'll get in the bounce. right? so i think it's a matter of, the market dictates your verdict on what you prefer to own right now. i guess -- it's tricky, right? as you suggest every countertrend bounce is going to be led by the stuff hit hardest. on the other hand, you know, it's not always a one day wonder do you look for certain clues in the action today that might tell us one way or the other? >> well, i think it's very constructive that even though the railroads are flat overall, transports look good if you remember, there's been a lot of concern about whether or not we're even still in a growing economy anymore. looking at, like, for example. u.p.s. and fedex doing well. i guess you could point to that and say, okay. i like that with the banks up. i kind of like seeing the travel names continue to rally. that gives plea some sense that not all hope is lost for this could tont could be an

expansionary year and maybe we won't have an oil-driven recession. i do like that i do think it's constructive i just don't think that we're done here. we're just now starting to see the biggest, strongest stocks that held us up the last year start to succumb to selling pressure like, that really just started over the last week or so and i don't think it ends as quickly as we wish it would. >> right no certainly high burden of proof on any one day rally meanwhile, crude oil, josh mentioned sinking today. down nearly 12%. top energy trader mark fisher, ceo of nbf trading on "half time" talking where oil could go from here. >> nobody panics to everybody panics and when everybody panics when you see the crazy spikes. you know, we're at 120 obviously now ua cage aa came id

opec should pump more. go down some yeah go to 200? i'm no in the white house. i have no idea. >> josh, obviously the move in crude has been so violent that even down 14 boxes in really not making much of a dent in the trend. but i guess when it comes to energy stocks you might be able to say, look, a lot more of a cushion where the price can go for the companies to still do okay how were you approach it right now? >> there are periods of time, as you know, where energy stocks diverge from what the price of natural gas or crude oil are doing. this is not one of those times this is all one trade. it's been a beneficial trailed for people to have on. i'm not going to argue with mark fischer about anything that goes on in the energy patch but echo something howard marks is fond of saying. nothing intelligent to be said about the future price of oil. i really don't think that

fundamental stock market investors should have a strong opinion about the course of the war from one day to the next i don't think the most experienced diplomats on the planet had any idea what putin's next move would be or what zelenskyy might accept in terms of, for a cease-fire if you think you have an edge on that you might want to see a psychologist i would say is, if you have big g gains in the energy trade and don't enjoy a day like today, maybe playing too large. maybe good to stay in the trade, but right sized positions so you're not made or broken by an announcement that comes out. that's the way that i would counsel people to think about it, and not be so doctoraire you know what's happening next. >> nobody knows that, agreed one point to make, an

underexposed sector in port follows coming into the year even with -- technology where everyone was a lot of catch-up. right? as we see market rotations and people have to be in these energy stocks. i wonder if that lends support to the sector above price of oil g given what's happening in russia and ukraine? >> a good point. when the quarter ends and they look at which medium and large caps outperform the bench mark, all in common, best guess, energy is basically a rounding error. maybe materials too. that's a really important point. and we're half way through par march. if you didn't have the trade on a form of support maybe for these names as people plow in in the last two weeks not acausing them's window dressing but being somewhat late. >> catch-up. no doubt about it.

hit travel, because recently beamed down travel stocks surging today also as oil prices come down. airline stocks, american, delta, and led by carnival, cruises, led the rally and haven't fuly erased losses on monday and tuesday of this week and oppenheimer says booking invested aggressively in the postcovid recovery, should yield share gains. do you like any of these names cruises, airlines? travel, ecommerce? any of that recovery play, josh? >> it's tough. because like you look at a booking hold set up really nicely technically. then around february 18th it peaked and they treated the stock as though it was like a war stock, and it came down as hard if not harder than a lot of the sectors that are actually impacted by war in eastern europe i don't think a lot of people

are booking rooms at the sheraton of kyiv so i don't really understand why they treated this stock this way. but they are no longer in uptrends no longer look as good as they did and this bounce really doesn't get you anywhere in pretty much all of these names all middle of the no-man's-land. it's hard to get bullish here. maybe just a little bit more time has to go by, and maybe these charts need to set back up again. >> yeah. meantime, talking about trying to reset staging a rally bitcoin, order on cryptocurrency. we have the details. >> a lot of buildup to this executive order. crypto ceos tell me the tone a little more supportive than the industry expected. clearer sign washington is taking crypto seriously and moving towards a real policy framework and bitcoin is rallying as a result investors sentiment improving, struggled so far this year prices first sparked, spiked

last night after treasury accidentally put out a since decleated statement calling it historic releasing details ahead of time. ether and other cryptocurrencies higher today and crypto represented stocks getting a bid as well. coinbase and block up a lot of those stocks rallying with bitcoin in the broader tech sector, which bitcoin is closely correlated with. back to you. >> what was it in the statement, kate, that made bitcoin rally? supportive kwo counterintuitive to hear all of government will regulate bitcoin and see a big price spike? >> interesting the idea more regulation would actually be a good thing one thing that stood out in the industry, pointing to the idea u.s. wants to be first here. don't want to stistifle innovat trying to be supportive.

they know a lot of companies have been founded here coinbase went public and most ceos talking with didn't think the industry would be banned at this point $2 trillion asset class. the fact they're working on things like market structure investor protection and cybersecurity and sanctions. really broad wasn't just saying, oh, going after whether -- a certain token is a security. very broad it was inclusive of a lot of different areas and i do still think and it will take a little a year before we see anything with real teeth but a first step and sbymbolic. saying, here to stay taking it seriously. it's not going away. >> yeah. almost the sense there was nothing in particular that was unexpected or hostile in the document may be enough for the reason for this relief in bitcoin. >> competitiven nesscompetitives

commerce secretary on next hour making sure we take the digital currencies and stay competitive in the u.s a good question for her. >> without a doubt thanks to kate rooney for that much more what president biden's executive order means for the crypto area. rolling into the close, actually retreated just a little bit off the highs. s&p 500 up 102 points right now. internally been a strong day not quite 3-1 advancing and declining volume certainly for pronounced advantage to upside however 0 not a massive thrust of 80% or 90% upside volume. u.s. index like everything retracing recent very strong move sharp pullback and looks like the crude chart. come back hard down 1% on the day, still well up, and this rally is pretty much still intact to get benefit of the doubt. volatility index retreated almost three points, still in low 30s, showing high-end

guiding now. a lot of near-term hedging really nothing too much incremental to worry about today about the ukraine situation. a little bit of relief from the vix, marginally speaking and still to go, highs about 20 points below highs still up 2.5% one of the best days in a couple years as the kind of depth of the correction defines the strength of the initial. >> 2020. we have not seen a rally this strong since 2020. welcome back to "closing bell. i'm sara eisen along with mike santoli. coming up this hour, commerce secretary on the possibility that the u.s. could punish chinese companies that are ignoring sanctions against russia first up on the market josh bown is still with us megan schoo joins the conversation did you put money to work today? anything change in the fundamental picture drawing you

back into the market >> yeah, sara. i think still so much uncertainty. particularly around the oil outlook. i think that is all that matters right now, really, when it comes to the macio outlook where do you see oil prices settling, and how long do they stay there investors should be very, very careful about trading in and out of this market that is not something that we are doing right now. instead i think it's really important to sharpen the pencils and look out over 12 months and see if you think a recession is to come. if it's not going to come, then i think that these types of heightened volatility represents a really attractive buying opportunity. we still don't see recession on the horizon but risks certainly risen. >> yeah. i guess in that in between state, meghan, nobody knows, really, with any confidence in advance of a recession, if it is to come. would you be more defensive in your posture a lot of folks saying, upgrading

quality as if that's sort of a half way between betting big on a snap back and hunkering down for a recession? >> yeah. i mean, i think there's a couple of opportunities value still looks attractive, and you're getting a good risk versus reward, but that's not the same at cyclical sectors where we know some of the cyclical sectors have taken it on the chin. we recently upgraded staples even though there's a material risk there should inflation continue to increase, as it's likely to occur. at least over the short term and we reduced financials, but i also point to small caps might be a little counterintuitive i mentioned recession ricks. risks small cap versus large cap performance, skepticism priced in that my be a good place to be over the next 12 months. >> interestingly, the russell 2000 is the only one of the big

four, josh, higher on the week actually up three quarters of a percent even with today's rally. s&p still down more than a percent. what do you think? small caps over large caps >> well, the russell obviously is deriving a larger portion of its business from local concerns so it's not quite the same as a giant global company that's contending with some of the cross-currents, the geopolitical stuff, et cetera, but the russell had its correction, had its bear market, rather, and probably started like six months ahead of the overall market. so like arguably these stocks are coming out of a lower base and the s&p isn't in real bear market statistical territory, although most stocks are might be a case of enough damage has been done there. i hope that's true actually, small and mid-cap valuations are reasonable. i don't hate that idea especially if you're looking

small cap value. but, again, i think bigger picture that's really just a case of who got hit first? and i don't think that those stocks can seriously rally while you have the s&p, the russell 1000 and the nasdaq 100 or nasdaq composite all of those indices below they're 200 days and those 200 days actually flattening out to turning lower. this is not a good setup right now. >> josh, somebody who talks to individual investors, tries to set their expectations and navigate them. i wonder if you saw the merle, bank of america's kind of research investment committee reported for their wealth management clients on monday really kind of, getting a little defensive in tone here saying we believe investors should maintain cash holdings, review investment plans and prepare for better buying opportunities in 2022 feeling as if the markets are in a pinch between what the fed's

going to do obviously ukraine and commodity prices here. is that along the lines of the conversations you'd want to have right now? and how do you navigate that idea we don't know what's going to happen but err on the side of caution, or not? >> it's a great point that you raise, and historically, wall street -- people have always gotten angry that nobody's ever bearish or cautious. and the thing that wall street strategists always hear is, oh, you guys just say 8% a year and always bullish and in permeables and rose colored glasses on and blah, blah, blah when you hear a major firm take stock of the situation and say you know what? there might be lower prices later. no need to be as long as you've always been, it's like, it's worth paying attention to. doesn't mean they'll are right and we tend not to make those types of forecasts but i talked about moving averages a moment

ago's if you take all the economics out of there and purely based on price action, are we still in a bull market or not? the answer is, no, we're not the range of possibilities opens up doesn't mean all potential outcomes are bad, but there are really bad potential outcomes, the longer you stay below a long-term moving average i wish this weren't the case like i don't want to come on tv and say things like this just telling you that is the shirt to medium-term setup the last part of your question is that the conversation you should be having depends on the client. is the client 30 dollar court averaging into a 401(k) every month if that's the case, they should welcome this with open arms and shouldn't care at all. is the client in retirement actively drawing down their portfolio to live on the money well, then, yes. very much should care and hope

they're asset allocation is durable enough for all of the various things that can happen right now. that's a very broad spectrum from one end to the other and why god sent financial advisers into the world g. case there, meghan, you would probably agree. what are you telling clients about the opportunities and whether the market has overdone some of the fears and where they should be looking to, what they should look to do next >> yeah. sara, i think fear, still a little overkudone in the u.s. market retain overweight in small caps, as mentioned earlier i think we are coming in on very solid economic footing so even though we had to revise -- had to add a scenario, i would say scenario analysis is very, very important in markets like this. we had to give a higher probability of a scenario to groun down grade to higher economic

growth and have cushion to weather that more cautious and reduced risk is with international developed equities, in particular europe where you look and the investors sentiment coming down sharply and see a higher risk of things staying really bad for longer. we neutralized that, neutral on international equities. >> one thing that's interesting in the current earnings period is you get a chance to talk to, hear from companies about what they're seeing right now i spoke today to adidas ceo and campbell's soup ceo. discretionary and staple view on the consumer both indicated good note slowdown in purchasing and demand from u.s. consumer. no pushback yesterday on inflation. both companies raising prices on the consumer. i wonder how much the whole earnings -- earnings reset, meghan, has been overdone as far as negative outlooks there's been a big mark down >> i think we've had inflation for a number of months now,

obviously, what we haven't had the oil price spike, and all-time high levels of gasoline at the pumps so i think we have to be mindful that there could be some s softness ahead for consumers we haven't gotten just yet, but i think you're right that companies have been able to pass through a lot of price increases, wages have been resilient and the labor market is still incredibly strong seeing evidence that i believe your network covered earlier today, there are workers coming into the labor force and that should support the consumer. anytime you see sharp increases in energy prices like we're experiencing today, it does raise some red flags for me on the consumer side of things. >> meghan, thank you very much appreciate it. we will talk to you again very soon did want to get to crowdstrike results. just did come out. looks like a beat across the board, and increase in guidance as well.

non-gas earning per share 30 cents. that was above the 20-cent forecast revenue for the quarter this past, $431 million. ahead of the $402 million forecast and guidance first quarter, 22 cents to 24 cents adjusted earnings versus 17% consensus and revenue guidance higher, 459 million, 465, the range relative to 441 asking all yaaround, looks like a beatt modest upside both to earnings and revenue guides. >> stock reflecting it up 11% after hours. josh, in this for a while. off 43% from the highs i imagine you like what you hear sticking with it >> iam i think this is one of the biggest secular trends that will be driving business for the next ten years. not just business, government, too. this is going to be a permanent part of our lives.

this idea that people want to use our networks, our computers, our software against us. it's never going away. it's global. it's going to be state actors, it's going to be hackers, criminals. it's endless i feel as though regardless of urps and downs of the economy, more spending in this area every passing year, and crowdstrike will be a big beneficiary of that now beaten earnings 100% of the time that they've reported. this is a company that has just beaten their revenue estimate, or excuse me 60% revenue year over year growth and with this earnings quarter i think that's 50% year over year growth so people say, like, oh, expensive stock. yes. for a reason not by accident. few companies have ability to grow like this >> are they outgrowing v scaler and palo alto? because all of those companies are growing fast aren't they? >> yeah.

i think they all will. so i think what it comes down to is, if you're an investor you want to make the decision, do i want a basket approach do i want to own them all and hodge the winners outpace the losers enough i still win and don't take -- idiosyncratic risks on any one company or do i want to try to figure out who has the best company, the best strategy in the sggroup? the group shrinks. aren't many to choose from personally when i listened to george speak on conference calls and interviews i feel he's the guy to bet on. so far every report they've come out has validated that feeling of mine. >> yeah. stock up 12% after-hours on top of an 8% gain during regular session trying to get to those numbers. josh, before you go, zone in on your top pick right now. what is it >> i want to bring up gm

i cannot believe how much this stock has fallen on literally zero change in fundamentals. if anything, the skyrocketing price of oil and gasoline lends even more credence to what their strategy is to go all-in on electric vehicles. so this is a name 63 it's fallen as low as 39 i don't know if it's completely out of the woods anytime you see a handle in front of gm, if you don't own the name, safely buy it. dividend support and i think there's nothing but blue skies ahead as they transform this company from top to bottom. >> interesting call stock down almost 3% this year. josh, thank you. good to have you and your new springy background. just getting started here in the second hour of "closing bell." our next get spot-on about this year the market sell-off listen.

>> a material sell-off over the next six and seven weeks and actually going to see more follow through in the coming days and remain bearish and still a down side to this market at this point in time, we actually think we'll see a sharp ral f rally from here over the course of the next month and saw part of that today. >> up next, cantor fitzgerald. ren the week ahead for stocks. and potential for sanctions against chinese companies aiding russia back in just two minutes.

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you more recently basically said further downside what gives you the confidence that you do think there's more to go on the down side and is today's action, you know, kind of complicating the view at all? >> sure. so we first got bearish when the s&p was at 4,700 in early january. look what's happened over the last few weeks, fundamentals materially worse look at inflation. clearly the problem prior to the russian/ukrainian crisis now gotten significantly worse right? people calling top and cpi a month, two months ago. and the fed tried to land this plane to try to have a soft landing while reining in inflation looks to be nearly impossible from our perspective. very, very challenging poor most people looking back 25 years highest cpi exclude and energy print we've had 3%.

in 20 years. haven't seen a situation where the fed has tried to cool down a very hot inflation picture last time it happened, 1970 os when the s&p dropped 5% from 1973 to 1975 so we don't think that investors are appreciating the environment that we are in the second thing is that growth simultaneously is slowing. which is the worse combination you can have slowing growth was a concern for us a month ago this quarter looking like coming in somewhere around 0% and that's before the ramifications of the big moves in commodity prices higher loss of confidence what's going on in communications for europe and overall slowing growth we think that earnings are now seriously at risk. soon as investors think that earnings will potentially move lower, multiples can get hit hard in that scenario. >> yeah. clearly those are the risks.

the market is kind of hemmed in on a couple different sides, it woe seem, at least the short term big question always is, have investors taken account of it? have we punished valuations enough, and has, you know, sentiment and positioning reset enough to more or less absorb that >> i think that's a fair question clearly you're going to get rallies like today so when you're in bear markets, whether '08, even during the short period of time beginning of the pandemic, in bear markets you get sharp rallies. sometimes they can last a day, last three days. but those are very good selling opportunities and they tend to draw people in before the market goes lower again to your point about valuation. we look at the equity essentially looking at pe multiples relative to yields and's right now look over the last five years, we're at average equity premium over the last five years with inflation at a 40-year high with the

federal reserve trying to reverse an $8 trillion balance sheet and get rates off of zero. same time we have a nuclear power attacking another country where a lot of the resources that provide the world supplies are there. we don't think that deserves an average equity -- we think much higher meaning lower multiples. >> got it. phil bearish good to check in and get your thoughts. >> thank you. up next, commerce secretary of the u.s., gina raimondo how the u.s. ban on russian oil and gas will impact inflation. later, why president biden's cryptocurrency executive order is more positive for the industry than expected, that's withbrian brooks we'll be right back.

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raimondo warning chinese companies to face devastating action if they violate america/russian sanctions. joining us and great to see you madam secretary. interested in hearing whether you are preparing any of those secondary sanctions on chinese

companies for violating export controls and u.s. sanctions? >> thank you for having me good afternoon so we're not preparing because it's our expectation that they will follow the rules, and by the way, it's not just chinese companies. we are serious about these export controls. we intend to enforce them against any company and any country, and we're not going to tolerate any country or company trying to do an end run around our rules to get goods into russia so we have a strong enforcement unit at the department of commerce they will work with the other enforcement units in the federal government and we definitely will do what we need to do if we find any economy, as i say, trying to do an end run around our control. >> so just to be clear, no evidence or proof at this point of russian -- chinese companies doing that >> no. no serm not certainly not yet as we say we are watching it very carefully.

>> what would it look like those sectiona secondary sancti? >> the way it works, what we've said along with our allies, that anything made anywhere in the world using u.s. technology cannot be sold to russia so, for example, almost all semiconductors made in china are made using u.s. or european equipment. so they're not allowed to send semiconductors made in china to russia if that happens, we could essentially shut them down, because they wouldn't be able to use our equipment to make the chips. and the really important point here and the reason this is so significant is we're completely aligned with europe. you know china can't pit mom against dad, or any company, or any country for that matter. we are aligned, which is going to make our enforcement all the more effective. >> and certainly, secretary raimondo, it would be effective to be unified in that regard on

a geopolitical level, but when talking about, you know, keeping in reserve this measure against semiconductor production, or when we're talking about imposing more restrictions on russian oil, it would seem to me exacerbating some economic friction points dealing even before the ukraine crisis. would that come into play in terms of decision-making and risk versus reward trying to clamp down on this invasion of sanctions, if it happens >> yeah. no no think so. president biden has been very clear. our job is to maximize the pain on putin and his allies and bring as much economic pain to him and his military operation as possible. so we can end this war quickly as possible. having said that, you know, there will be some repercussions and this will be difficult for a lot of people. the thing about it is, we don't export very much to russia not a very big market for us

so it's true u.s. companies won't be able to export to russia, but that amount of business pales in compares ton how important it s to get russia to stop this war. >> there are reports chinese companies might buy stakes in russian energy companies what would be the ramifications of that? >> you know, at this point i -- i don't know, or if there would be any we know -- what we are doing is doing everything we can to make sure that we deny russia every bit of technology and equipment and goods that they need for their airline industry, for their military operations. >> and i did want to touch on the executive order today about cryptocurrency, digital currency how would you rank the multiple

objectives of this seems as if it's a plan to come up with a comprehensive plan across the government around all aspects of this world, but when you're talking about maintaining, you know, competitiveness on the technology front relative to investor and consumer safety, how are you going to be reconciling all of those issues? >> exactly as you said it's intended to have a comprehensive plan, to have a balance in all of the different factors. >> you specifically, though, are looking, i think, at the competitiveness issue. interesting. china effectively ban the cryptocurrency what will you be looking at there? >> in this i would defer you to secretary of treasury, who is in charge of all things currency related. what i can tell you as it relates to competitiveness and things that i'm working on i was with the president earlier today. we had a convening of business leaders and bipartisan governors

to talk about increasing domestic production of semiconduct sem semico semiconductors, my judgment, one the best things we can do to secure our national security as well. >> looking as semiconductor shortages. are there other potential shortages, seen palladium and nickel prices going into manufacturing of technology. what's your assessment of shortages we could see in the supply chain and how the u.s. can navigate around that >> great question. so the number one focus is semiconductors i can't emphasize that enough. you know, it's 2,000 chips in cars, chips in military equipment necessary for medical equipment. we have the ceo of medtronic with us today. biggest medical device manufacturer told the president that he needs chips to continue to innovate. having said that, you're right we are extremely focused on, we have a game plan

we're prepared if russia decides, for example, to deny us palladium or uranium we're prepared for that and there are shortages in other inputs to electric vehicles. the president, i'm on the, a co-chair of the president's supply chain task force and we are mapping across the supply chain to figure out where we have vulnerabilities and then we want to make more of these products in the united states of america. i think we've learned it's not just about going to the lowest cost country it's about having a resilient supply chain and that means making more of these things in america. >> it will take time meantime with all the supply shortages and issues and the war, we are expecting another very hot read tomorrow on inflation. get a cpi report not even factoring in everything that's happened in the last week or so. how long do you expect this to be with us, based on your conversation with industry that

are facing so many of these shor shortages? very high inflation. >> you are right inflation is real. it's, you know, many americans are obviously seeing that in their daily lives at pump or the grocery store. president biden directed us in the cabinet to go industry by industry and figure out e everything we can do to increase supply of goods to bring down courts obviously, the biggest tool to fight inflation in the short run are held by the fed. the fed independent from us has the strongest tools in the toolbox to deal with inflation, and i think we all expect them to take action here in the short run, to kind of dampen the price increases. >> market expecting it, too. secretary raimondo, great to talk to you today. thank you for joining us, nice to talk to you. up next, the ceo of bitfury on his outlook for cryptocurrency regulation and

the way of president biden's new executive order. plus aliirne stocks taking often today. coming up, a look at whether soaring travel prices will force consumers to cut back on prov mes and puts improved health in all of our hands. because seeing a healthier world isn't far in the future. we're building it... now. ge. building a world that works.

update with shepard smith. >> hi, mike. from the news on cnbc what's happening, the pentagon formally rejected poland's offer to send combat jets to ukraine by way of united states military base in germany. the pentagon spokesman john kirby said minutes ago the move too high risk and the seen by russia and an escalation saying the u.s. see as more pressing need for other types of weapons to help ukraine defend itself. two americans held in venezuela's prisons are free men after white house officials made a top secret visit to the country. hours after president biden banned all imports of russian oil and natural gas. venezuela a top oil exporter and friend of russia. and survivors and victims families in the surfside condo collapse in florida.

if approved bringing total sensement pool to almost $226 million. 98 people were killed when that beachfront condo collapsed last june. tonight, what happened to all the yachts, private jets and mega mansions seized from russian oligarchs. some answers right after the news newstime, 7:00 eastern on cnbc >> see you then. shep smith. cryptocurrencies and represented stocks rallied today after president biden signed an executive order calling on the u.s. government to skimmen risks and benefits of crypto without saying in a statement, united states "must play a leading role in international engagement and global governance visual assets consistent with u.s. and global competitiveness. a bitcoin miner. take aways from the industry looked like the market liked it? >> no question

market liked it. historic day for the government. historic time the government has not just looked at risks of crypto but compared risks of crypto to risks of the current system and asked, what could be better a big change. >> just talked to the commerce secretary a little bit about it. also this notion the u.s. wants to be competitive when it comes to digital currencies. it's interesting a strong statement in light of what we got from china, doesn't want to have anything to do with it what does that look like to you? >> a lot of people have take an wrong lesson from china. china's pursuing a different blockchain a path that means government builds its own blockchain and dominate the financial sector for their people alternative, looked at around the world places like germany and united states arab emirates, singapore and growth economies,

their focused, how do we put financial power back into the hands of users i think that's the direction the president's executive order seems to suggest, which is a very good thought. >> what would you list if you were kind of saying, here are the things i feel are most important that eventual regulatory approach, not take or -- in other words what would, perhaps the industry be most fearful of or the least productive if the government were to take more aggressive measures >> look, i think the things that the industry has been most fearful of for i while, the knee-jerk idea that crypto's new and risky and bad. unique about the executive order it says it's possible crypto projects might be more inclusive or better for consumers than the present banking or investing system a big deal and different how it might have turned out. other thing crypto people are

worried about, the idea we'll move into a world, like the canadian trucker protest, an xa example of this. government can shut down your bank account and forbid you from using your money the way you want to. many believe crypto is an alternative to that. this executive order seems to be open to the idea we don't have to go down a government dominated path much more with democratic values and really critical at this moment. >> if bit ccoin proven anything about its use and value? >> navigating around sanctions more about supporting ukrainian people my company that 50 people who live and work in ukraine currently on the run from an invading onslaught we've seen tens of millions of

dollars worth of bitcoin and ethereum donated around the world to crypto wallet addresses the ukrainian government set up and see how important bitcoin is to refugees fleeing war sozones. saw it in venezuela and bangladesh russian sanctions is overblown and even the treasury department said they see no evidence of that obvious reasons, blockchains are transparent. way too easy to do that and no evidence of that yet. >> you mentioned there was a sense there maybe there would be a knee jerk regulatory response because bitcoin and crypto are new and therefore this is risky. isn't there a legitimate criticism or at least a question that the prevailing interest, if you looked at, typical interest in this area, it is in speculation. also hesitation around product it's meant to look like

traditional financial products, whether they are deposits giving you a high yield, that really are not as safe as the existing ones how do we navigate around those things >> i guess i'd say a couple things about that. first of all, the concept that crypto has a speculation probably made sense fives years ago. at this point teams of networks built around so much faster and cheaper and quicker to settle than it the current system is. it's starting to become clear what crypto is about and isn't really speculation what all of these layer one protocols are showing us i think that as much as anything, there is a belief that what we need is a path for crypto products that people are investing in to be registered, to be disclosed, et cetera the trading limbo in the united states over the last five, six years is the idea if in fact your crypto -- almost by

definition illegal in other words, if you're a crypto project that is a security, no path to register your security the way a traditional security would register, i think might take an executive order, a government-wide path legitimacy. >> brian brooks, appreciate your perspective on all this. thank you. >> thanks for having me. and for more on the crypto space, tune in to a cnbc special. "crypto night in america" tonight at 6:00 p.m. eastern time. up nt,ex a correction making some beaten up blue chip stocks appear cheap.

take a look at amazon soaring after hours. company announcing a 20 for 1 stock split. $30,000 stock. clearly could bring in a lot more buyers especially retail buyers and why you see the stock moving of course, caveats, right, mike? that come with a stock split doesn't change anything fundamentally. tracking a new buyer. >> doesn't change anything fundamentally. there is something -- retail investors flock to this kind of thing. take it as some kind of excuse especially options traders there is a practical advantage to having a somewhat lower price share. you trade options and covering 100 shares seems makes it cheaper and all

the rest a weak stock, amazon context as well. really struggled the last year and a half hasn't been able to get out of its own way since early part of the pandemic the company authorizing also a $10 billion share replacement one was smaller $5 billion in place in 2016. the company only bought back $2 billion in stock under that authorization. not a major repurchaser of its own stock and keep in mind even at $10 billion a very small percentage of the market cap $1.4 trillion now. tesla, stock split, fed the crowd, feted public a cosmetic change they wanted apple stock put not long ago another side story, i don't really think anybody should care if it's the case, but maybe it's, prices in the price zone getting into the dow jones industrial average obviously the dow is somewhat

under exposed to the very largest faang-type companies amazon, massive economic footprint. no real magic in terms of performance of your stock if you go in the dow. salesforce can tell you that right? >> a badge of honor. >> used to be. probably still is. amazon i would have to say, too, clearly it's not one of these founded controlled companies the way a facebook or alphabet is. that clearance to potentially get in there it's an interesting knee-jerk reaction in a stock which remains before this popdown 26%. >> and underperforming some of the other big cap techs. certainly apple. tom forte joins us, covers amazon stock um, tom. 8.3% or so how do you see this changing potential investors base, and the case around the stock? >> yeah. i do think that the 20 for 1

stock split news is a positive for amazon to the extent material lower per share price and can attract a lot more consumer buyers. the real interesting story last quarter was the faster growing margin, high margin businesses consumers looked at that and investors looked at that and were encouraged and shares up rather than worry about the slowing ecommerce. for me 20 to 1 is good for the stock. >> tom, hard to read minds here, but there's relatively new ceo at amazon. stock struggled. feels as if that they're in search of a little of a story and traction among investors do you see the fact they would come out with this now at ought interesting? reporting earnings before too long, and they came out with news here? >> i do think kind of what you're hinting at, mike. that the company is perhaps

looking for additional ways to try to improve shareholder performance and improve the stock price. i agree this isn't the his historical or recent historical, revenue and earnings growth things of that nach nature perhaps pulling an old liver to drive share price but i think that's more than okay. >> what about the buyback? significance doubling to $10 million. one in place for years. >> great question. the way i think about the buyback is such. why higher margin better cash flow from cloud computing, advertising, broke out advertising revenue first time last quarter, it gives them more free cash flow to buy back shares and the fact they're raising the buybacks, suggests underappreciated at current levels, potentially invest less on a near-term basis i think that's also good news.

higher authorization for the buyback. >> do you think $10 billion is big enough to really represent a significant gesture in those directions >> yeah. mike, the way i look at it, incrementality the fact they're going to announce a $10 billion buyback, buy perpetual share buyback company like an apple. i think it's interesting they will devote more cash flow to buying back shares >> interesting the market with a rally nasdaq and s&p up more than 3.5%. nasdaq is 26% off the highs. what is holding this stock back? >> i think that, okay, so the story before today caused rally on pull back in oil, is that, for companies like amazon that do a lot of delivery it increased the first friday delivery effort for years now,

the spike in oil prices is a severe negative. and to the he extent it may take discretionary income out of consumer's pockets, they still have a large e-commerce business and if they do the deliveries themselves negative for amazon so no surprise it performed under relative given the spike in oil. >> tom forte we appreciate your time amazon up 7.5% after-hours thank you. >> thank you. >> let's bring in paul hickey from the spoke paul, you track the history of all of these moves a 20 for 1 is stock split. something of that nature what typically happens we're seeing the pop now then what >> i think you got a pop short-term like you see here you don't have to look back more than a month when google announced, alphabet announced, recently, you saw part of it was a pop on that and then the stock has done

nothing since then i wouldn't read too much about it amazon, you know, it's a name we like, for the long-term. but we wouldn't use this as any reason by any stretch to buy the stock. nor would we ever use a stock announcement as a reason to become incrementally more positive on the stock. especially nowadays brokers allow you to buy fractional shares, so it is even less important. >> yeah, i mean, it's interesting, because this is a company which -- this is not its first stock split. if you go back to the year after it became public in the late 90s there were a couple of splits when it was much more routine, companies didn't want to have a four-digit stock price for practical reasons and cost of trading, things like that are we seeing at all a reversal in that long-term trend in terms of companies willingness to let their share prices to keep

climbing indefinitely? >> you know, i think part of it is -- i mean, discussion for another time probably, but -- i think what you saw coming out of the financial crisis as stocks were rallying, companies were hesitant to split their stock because they seen two separate periods where the market fell 50% and didn't want to be caught in the period they split the stock and it got down to a real low, much lower price i think part of that was hesitancy and as thing continue to run was less important share price as far as individual investors able to buy and sell the stock because of fractional shares and other things, you're starting to see as you get into the thousands, i think share price companies are now more willing to split the stocks because these things are becoming so monstrous in terms of the share prices that it just

becomes so far out of the norm >> of course you read into it the whys, why now? what is the signal from the management about attracting a new base of investors, retail consumers, what do you make of the stock under performance, it under-performed in the rally today and has been for the last few weeks and months >> yeah, well, i think you look back, one of the biggest beneficiaries of the covid lockdowns was amazon and it, you know, it did well. what you've seen in the last several months is all of these stocks that were the biggest winner from covid are starting to see -- you know, have under-performed. amazon hasn't under-pe hperformo bigger winners like peloton or zoom but incrementally, people, you know, people who moved to online shopping when they were -- during the lockdowns -- are doing less of that now and getting out more

so i think it's just a digestion period but for the long term amazon has shown time and time again to be able to, not necessarily reinvent themselves, but to go into different sectors and be successful. not always hitting a home run, but, you know, they're going out there and they're experimenting and some of these experiments have ended up doing quite well for the company. >> you know, andy jazzy has been ceo for eight months or so, nine months, took over from the founder, jeff bezos, and, again, we're just putting people on the couch here we have no idea, we're speculating on motivation, but he do remember when tim cook took over apple from steve jobs and the stocks high which at the time i believe was 700, trading well below that, i think there's a way in which it could hang over the head of a

new ceo, did the split, rebase nomin air share price to 100 and then clears the deck okay amazon no longer has to look up at 3500, the high, whatever it was, we're now, we have a new number and can just take it from there. i think look, reverse splits do the same thing like a ge, when they did a reverse split paul, i don't know if you want to participate in my psychologyizing here that's one of my reads. >> i'm on the couch, after we're done i have a lot to talk about, can you help me, doctor. >> it's a safe space, paul, come on >> i think you bring up valid point, new ceo, new era, and try, like you said, clear the decks and you know, have my own stock price benchmark to look back at and judge myself.

>> paul hickey thank you, i'll set up that appointment for you. also covers the stock from jefferies as we get different opinions on the name by the way the stock is losing steam after-hours up 10, 11% now up 6%. 20 for 1 split on amazon how do you read this is this. >> i don't really think the split changes anything dramatically other than let others buy in that perhaps wanted a piece of this at a more reasonable price the more important thing is commitment of a buy back and we think the commitment on the cost savings they're putting into the model that they highlighted in the last earnings call that they're pulling back in capacity build out last couple years has been fast and furious and they're going to show leverage as we said, amazon stock does very well in harvest mode versus invest mode. we think we're going back to harvest of the big investments they put in. yes, the split is a positive

outcome for mass market shareholders, doesn't change anything about the company and clearly the buy back is probably the most important thing. we look at the bouyback valuatin pull back going into harvest mode say good outcome for investors going forward. >> brent, do you think this is a harvest mode for amazon as we've seen them before over the course of its history where they do go through these pendulum swings from investment into reaping the benefits or is there anything going on now whether the company is at a different state of maturity or different leadership that it represents a more strategic longer-term mode of operation >> on your second point it's different, jassy is a software guy and having worked in the software industry myself for over 20 years, executives think

of high recurring businesses not loss leading businesses, i've never spoke to jassy about it but i believe he will find a better, more profitable recurring way for investors so without again having a kong with -- having a conversation with him, that's important. and many think logistics investment in the low margin business are in. you get the high managerin business to spend and low margin business that hopefully aren't going lowernd you have a better outcome. i think it's a positive with him in and ultimately what they're doing with the strategy, the buyback, again the split is run in my opinion. >> brent thill thank you as amazon looks to hold after-hours gains up more than 6% on that news we have a cpi tomorrow and see if there's follow through on the

rally. we also have key interviews, a first with imf managing director, krist a, lina georgeiva and treasury secretary janet yellen on impact of sanction against russia and important day on the back of what is to be another big inflation number that's it for "closing bell. "fast money" begins now. live from the nasdaq marketsite in time square this is "fast money", i'm melissa lee, tonight's trader lineup guy adami, karen finerman, steve grasso, and wono tonight on fast major administration warning defy -- and face conversatio consequences plus -- sigh of relief -- why bitcoin had such a big day