i hate to say it, but downside action in macy's expected at the 24 -strike i pown puts. >> the man who doesn't back down from anything. >> home depot. this is a great entry point for what should be a multi-year winner >> you stick to it that's how the game is played. >> yes, sir. >> you have a great weekend. all you as well. "the exchange" is now. thank you very much, scott hi, everybody. i'm kelly evans. stocks are heading for their fifth straight down week with modest moves today obviously the russia/ukraine war weighing on markets. but so is the fed. a rate hike cycle set to start wednesday as inflation a spiking. we'll look at if the economy is ready. >> as oil spikes to $130 a barrel, it showed it would be great to have alternative energy sources but we're not fully there yet. what can we do in the meantime we'll have the ask of

distributors, socal gas. and the etf covering chinese internet lost three quarters of its value in little more than a year is covid weighing on chinese markets? we'll explore that first, let's get to dom with the market numbers to close out the week dom? >> all right that chinese internet weakness big tech week, this is partly behind what has been the underperforming trade in the nasdaq so far today. from a major indices perspective, we see the dow industrials clinging onto gains up one tenth of one percent. the s&p is down nearly one-half of one percent 16 points to the downside. 4243 the last trade. nasdaq composite down a little over 1%. right now 150 points to the downside now below 13,000 at the highs of the session, we were up 110 points at the lows down 184 just to give you an idea of where the range has been so far today, and the underperforming nasdaq with regard to the week that was

here in terms of sectors, maybe no surprise that energy continues to be a focal point for many parts of the market energy was the best performing s&p 500 sector materials, though, half a point to the downside. overall, the second best performer. thanks in large part to real outperformance in fertilizer makers in particular look at cf industries. look at mosaic that's helping to power the materials gain the consumer staples trade, the worst performer down 5%. crude oil a focus. kelly mentioned $130 it was $130.50 that was the high we saw just four days ago. meaning at these levels, $108, we're down roughly 16% in four trading sessions after two big days worth of declines, we're seeing a rebound today, that realtime pricing of tensions between ukraine and russia playing out very much so in that oil trade. right now wti, 180.40. back over to you >> 108 dom, thank you

we appreciate it it's been a busy week for data everyone is talking about the cpi. there are a few other key reports to mention i'm not going to say the word stagflation, but that is hovering over markets. let's start with the data we got just this morning. it's all going into the bad category consumer sentiment dropped we're talking about the lowest levels since 2011. consumer expectations outlook for the economy, a favorite gauge of investors that dropped to about a decade low. even worse, and sure to frustrate the fed, inflation expectations in that survey surged they went the wrong way. here it is consumers one-year inflation expectations jumped to 5.4% after a slight drop the last reading. this is the absolute last thing the fed wants to see right now is they try to avoid the psychology that could drive a wage price spiral. cpi, we know where this is going. 7.9% this week that's a 40-year high. the one bright spot in the data,

only highlights the conundrum. jolt, the job openings report revised to show a record high in december, 111. the problem, this is the biggest jobs workers gap in u.s. post war history, and that goldman says is going to keep upward pressure on wages well into next year it means upward pressure on inflation as well. so with all of that said, joining me now to discuss is p and c chief economist gus. it's great to have you here today. what do you expect the fed to do about this conundrum >> we'll see the fed raise the fed fund raids by a quarter of a percentage point and they'll continue to raise it they're going to be gradual and steady, but the risks are to the up side with the fed funds rate. if inflation stays higher because of high energy prices, the fed will need to raise more

aggr aggressively >> let me pick up on the point about how aggressively the fed needs to tighten there's so much going on between the actual inflation ratings, the psychology that's now building up that they have to be really careful i think stephanie link put it well last hour when she said even if they hike five or seven times this year, that's not solving the inflation problem. >> no, not in and of itself. we're going to get slower inflation because of things like eventually the crisis in ukraine will come to an end and we'll start to see energy prices decline again. part of the thing that's boosting measured inflation now is comparisons with early 2021 when prices were low coming out of the pandemic. that's going to fade from the data so it's going to be a combination of fed tightening, a gradual resumption of normal activity with the presumably some sort of stall in the ukraine/russia conflict and the fed raising rates in an effort

to cool growth we should see lower inflation at the end of 24 this year and again in 2023. >> sure. no one is saying we're going to be at 7%, but even if we're at 3% or 4 %. if we're at 3% or 4% into next year which is what the wages is pointing to, that's still a problem, isn't it? >> not if inflation is slowing i don't think we should expect inflation is going to fall from 8% in early 2022 to 2% by the end of this year i think that's a recipe for disaster but i think if inflation is heading in the right direction, if we see energy crisis starting to come down if we see some of that tightness in the labor market dissipating entha, then the fed is moving in the right direction, and i'm pretty confident the fed has the tools to get inflation to 2% it may take a couple years, but i think the fed knows what they're doing and have the tools to do so >> youdon't think it's that bi of a deal if inflation is in the

3% to 4% range for a couple years. >> i wouldn't say a couple years. if it's 3% at the end of 2023, i'm concerned, but if it's there at the end of this year and slowing, then i think that's okay don't forget we had a period coming out of the last recession where inflation was well below 2% i think the fed knows what they're doing, and they don't want to cool off inflation too quickly because that can push the economy into recession >> what is your gdp outlook with everything the economy is now dealing with in terms of supply chain and cost spikes? >> we'll see real gdp growth this year of between 2 .5 and 3% that's a good solid number that's above the economy's long-term average. and then we will see slower growth in 2023 as some of the fed tightening starts to bite on growth a little bit more but i think we will see a gradual slowing in growth this year toward a more sustainable long-run pace.

>> all right it all -- so you're -- everything is going to be fine no one -- >> if -- there are going to be bumps. >> investors need to chill growth is going to be fine inflation is going to befine i hope you're right. >> it's going to be bumpy, but i think the fed knows what they're doing. >> thank you for joining me. i appreciate it. meantime, the invasion of ukraine has sent prices haywire across the commodity complex especially nickel prices whose massive surge resulted in cancelled trades and closed markets. now other platforms are raising margin requirements and trying to prevent a repeat. let's get to bob with more on the fallout. bob? >> you know, this has been a real weak of upheaval for traders. in two trading sessions this week, i'll just give you an example. brent crude futures have swung by the most on record. we saw swings of $20 a day that's unheard of. usually it's about $5 a day. across a lot of commodities, a lot of traders have retreated. why is that happening? well, the traders and the

brokers have to deposit cash and securities it's called margin on a regular basis to cover potential losses in their positions if the market moves against those positions, they receive a margin call requesting further funds. if they fail to pay, they can be forced to close their positions. that spike in nickel left some brokers struggling to pay margin calls because their short positions went against them. the result is in some k3 commodities exchanges have raised margins and it's not just commodities. traders were surprised when mci and footsie russell announced russell stocks would be removed and the value set to zero. they were forced to halt tradings that trade russian stocks the good news and bad news the ability for market participants to quickly change the rules overall, it sounds startling, but when the circumstances change, they have to change the rules. and it highlights the strength

of the u.s. system the overall u.s. trading system. it's very flexible on the other hand, the traders in those systems can get very easily burned when they trade -- change the rules as they have had in equities and in commodities in the last week and a half back to you. >> do you know to what extent trades are being cancelled or if anything that's happening is a departure from what we've seen in the past? >> well, trades being cancelled, it's different we're looking at what's going on in that situation. but a lot of traders have lost a lot of money recently. now, part of the problem is there's a lot of what we call tourists in the commodities space right now. there's a lot of speculative trader who have never been in the space before when they get burned, they pull back the open positions have dropped dramatically because so many people have gotten burned and there's been margins called. people had to come up with more money or close their positions i guess what i'm trying to say

is look how remarkably flexible the u.s. trading system is this is what you should do you trade commodities on margins. if things get crazy, they increase the margins you to come up with more money people also get burned this is a good feature of the system it's flexible. it moves when things get tougher, they contract and trading contracts overall. on the other hand, there's a lot of people who kind of get burned there's an ongoing debate. some people want stricter margins and not such craziness in moving them around. in these situations, i see it as a sign of strength and remember, it is capitalism, and you can lose money trading futures contracts. very easily. >> a lot of reminders of the downside of trading the markets lately bonn, thank you so much. we appreciate it coming up, one market veteran says it's not whether the consumer will spend. it's about where they will spend now. americans are about to shift their spending in a big way again. and we've got the portfolio plays for that plus democratic lawmakers

invailing a new plan to tax what they call excess profits of oil companies. in an effort to offer rebaits to consumers. energy stocks are up 40% this year, but the leading energy etf is still 20 % below its all-time highs from 2014. we'll look at what a win fall tax would mean let's get a quick check on the markets. the dow is the only major average still in positive territory by 57 points the s&p down 12. the nasdaq down 137. the dow was up 341 at the highs. we're back in a moment ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.

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welcome back, erveg. quick news alert out of the energy market. oil and gas rigs added for the ninth time in past ten weeks baker hugh's latest rig count close to 633 the highest in nearly two years. well down from prepandemic u.s. crude traded over $130 earlier this week. that was the highest mark since july of 2008 wti just under $109. president biden along with u.s. allies just announced new economic measures against vladimir putin and russia today. even as politicians are struggling to offset the pain

surging gas and food prices are causing for u.s. consumers joining us now with the latest d.c. developments, elon moi covering the democrat's newest effort to reducing pain at the pump, first details on the white house's latest move. kayla? >> reporter: president biden announcing new economic actions to ramp up pressure on russia's economy which despite the pain of recent weeks has not deterred president putin in ukraine the u.s. will now be moving to cut off funding for russia at the world bank and international monetary fund, ban the import of russian vodka, diamonds and seafood, and along with g-7 allies revoke the special trade status that allows tariff-free trade. biden told congressional democrats who wanted to do this sooner that he didn't want the u.s. to go it alone. >> more important than us moving when we want to is making sure all of nato is together, is

together they have different vulnerableabilities than we do, just like in the oil embargo a lot of them could not. the only way i think you know, it took weeks to work out. >> biden there in philadelphia speaking to democrats also commented on the closure of the russian stock market and said in his words, when it reopens, it will blow up as the u.s. warns of possible chemical weapons used by russia, the investigation into possible war crimes continues deputy press secretary andrew baits told reporters there are strong indications this is occurring and that the heinous way russia is prosecuting this war will result in war crimes. in romania, the vice president said she sees no signs vladimir putin is interested in diplomacy. identifying no change in posture since the invasion began and, of course, yesterday kelly, we did see the top diplomats from both russia and ukraine after multiple hours of talking say there is no interest in a

cease fire >> kayla, again, going back to the issue of chemical weapons which we keep hearing about so you have to imagine there's some intelligence backing there, but we're not hearing what the consequences would be. is that to suggest there won't be any specific consequences or they want to prepare the ukrainians for this, or that -- i mean, we've already thrown to the point that mied i biden was announcing so much at the russians what else is left at this point? >> well, on the topic of chemical weapons, one of the reasons why you haven't seen the u.s. go out and say exactly what would happen is because there's a little bit of heart burn over comments that president obama made regarding syria several years ago when he said the use of chemicals dl there was a red line and the u.s. did not end up taking as harsh action as many thought was deserved in that scenario the white house doesn't want to get over the skis. anything it would do in response, it would want to make sure allies are on board with in keeping with the way it's approached the entire situation and it's unclear there's

agreement on exactly how to respond in that case but to that end, kelly, just a couple hours ago, russia's ministry of foreign affairs started tweeting about possible chemical attacks though russia is blaming them on ukraine. all right. kayla, thank you very much as always let's turn to the new tax on oil companies that's being proposed by a group of democrats in both chambers of congress >> reporter: president biden has warned oil companies against gouging consumers during this crisis now, democratsare out with a new bill to make sure that doesn't happen the big oil winfall profits tax targets companies like chevron, shell, bp, emg, exxon and occidental that produce or import more than 3,000 barrels day. it calculates the difference between current oil prices and prepandemic prices and splits it

in half. that would be a new quarterly excise tax on every barrel of oil, and the money would be returned to consumers as a rebate if oil were $120 barrel, this would raise $45 billion a year and send $360 back to families. >> there is no reason they should be making billions of dollars while working class americans are paying $7500 to fill up their tank they need to be taxed for excessive profits. if they don't make the excessive profits, then they can easily lower the price at the pump. >> congressman is one of the lead sponsors of the bill. he told me he's also open to a gas tax holiday. he said this plan is targeted to low and middle income households and would also end up saving consumers more money back to you. >> this is an idea i floated over the months, but if the idea is to benefit from how well oil companies are doing right now, why not just hold the shares,

give than these companies are trying to return the cash flows they can back to shareholders? so we've seen -- it's an irony we're seeing this divestment from big oil while at the same time acknowledgment that big oil is where the cash flows are going and they could recycle the cash flows back to consumers i don't know what that structure would look like. but this just feels like imposing a tax we all know what happens when you tax something, you usually get less of it >> this would have the opposite effect which is raising prices companies would be disincentives to invest in production. they said the way to avoid the tax is to produce more oil so that you don't have to pay the difference in the prices between what they are now and what it was prepandemic. they were making a lot of money prepandemic and nobody was complaining back then. >> a lot of money prepandemic,

we had the blowup of the shale bubble >> speaking of ways to help american consumers deal with energy prices, our next guest says america has the supply to become energy independent, but the lack of infrastructure means a long road ahead. joining me is the president of socal gas. it's great to see you. what is the infrastructure head wind you're facing right now >> great to be on the show i think we're seeing a significant amount of potential resource in renewable electricity as well as renewable gas and as well as traditional natural gas. so the supply and the resources there and where we want to work with government is in infrastructure investment. and we saw a movement in that direction with the enactment of the bipartisan infrastructure package that included those

kinds of policies, including supporting investment in hydrogen infrastructure that we at socal gas are keen on >> explain to me the infrastructure need. as specific as you can be. how would that affect southern california households' ability to get their gas more cheaply? >> i would say in the near-term, in the short-term, what our customers are experiencing is driven by supply and demand dynamics and specifically in the natural gas space, we have been seeing natural gas prices higher even before the crisis in ukraine. and we are incentivize to help our customers to reduce their demand, and that helps with bills. by that i mean the price of the commodity for us is a path through to our customers so the kinds of tools that we use are whetherizing and energy efficiency as well as support on their bills, but in the long-term, we think that there

needs to be investment in infrastructure to support renewable gases like renewable natural gas, and hydrogen infrastructure, and, in fact, we announced a proposal two weeks ago to build the country's largest green hydrogen infrastructure proposal, and we think that is supported by the hydrogen hub initiatives they have in washington d.c >> and you think that would bring bills down for households? >> it would bring supply and increasingly cleaner supply as we transition to cleaner and cleaner energy as we move forward in the clean energy transition >> understood. great to have you here today thank you for your time. >> thank you still ahead, why oracle's earning report could be flashing a warning sign for the tech sector we'll talk about what has people talking snrchlt it's been a rough week for chinese stocks. alibaba, and others dropping

10%. we'll look at what's ahead and if the stocks should be a buy. >> look at the dow heat map. evenly split two to one gains outnumbering cles jpmorgan the worst performer right now. we're back in a moment ♪♪ ♪♪ take the world by cloud. accenture let there be change. ♪ ♪ i call it.... the wheel. ok, this is a miss. it's a fork. i got ten forks right here, baby. a toilet? we're not animals. we go outside like humans. nobody's going to the moon, ever!

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welcome back to "the exchange". here's a look at the markets dow hanging onto 100-point gain. we were up 341 it's the only one positive s&p down 4 energy is once again the only one closing in the green you can see it up about 3% consumer staples, technology shutting twoen 2 and 4%.

docu sign sinking after the first quarter. the stock down more than 50% this year. it's down almost 23% today deere moving higher after wells fargo initiated the company with an overweight saying deere is a category leader this they outperformed the broader market up 13% and shares of etsy are the worst performer in the s&p right now checking in they're down almost 10% today. down about 19% this week among the reasons, deutsche saying churn dynamics will weigh on future numbers. we've seen a lot of pan beneficiaries coming back to earth. >> here's the news texas portion clinics losing before the state's highest court. the ruling paves the way for the nation's toughest abortion law to remain in place also lowers the chance of even pausing the restrictions any time soon. the united nations human rights office has received, quote, credible reports that

russian forces are using cluster munitions to strike populate areas such as banned under humanitarian laws. one u.n. official says most of the casualties are caused by explosive weapons with wide impact areas and nuclear talks with iran are on hold after russia demanding relief of sanctions. british and france envoys say a deal is on the table but it could unravel within days if external factors are not resolved on the news tonight, how part of detroit turned to solar power after the local utility company repossessed the street lights that's tonight at 57 -- 7:00 eastern. that's not something you hear often. >> it's not. coming up, it hasn't been a pretty week or month or year really for the ev stocks names like rivian, lucid, all down will it leave a permanent bad

taste in investor's mouths our next guest says buy the franchises where customers will keep spending their money. it's all coming up on "the exchange".

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welcome back, everybody. all three major averages down for the week with the nasdaq the worst performer. interestingly, it's not tech it's consumer staples that's the single worst performing sector take a look at these names con og ra sinking more than 11 %. coca-cola down about 7%. my next guest likes one of the good distributors. he's putting money to work with companies he says will benefit from a shift in consumer spending joining me is the chief investment officer at knbr investors. also chief strategist at lido advisers brian, i'll start with you tell me who excites you these days >> well, look, you're starting to get a lot of stocks on fire sale it's not totally dissimilar to two years ago at this time we have an event that looks

binary like it's going to disturb earnings, but you have to ask how long is this going to last so the offset is the market started the year at expensive levels we think leaning in to some really top quality consumer facing franchises is troebl a good idea. we understand short-term could be choppy. >> to that point, sysco, is one we don't see come up often why does that jump out to you right now? >> the food distributors have surprisingly positive benefits from this kind of food price inflation. they tend to get operating leverage from the inflation in the overall price of the commodities, and they're they're able to essentially offset increases here with decreases there, and basically make something positive out of the situation. plus the lerchg to reopening which is still going on. >> i want to bring you in, one of your big bets has actually

been on latin america which we started to hear more and more about brazil, the top performing market in real terms this year why latin america? do you feel safe putting capital to work right now? >> so when we put the bet on in latin america, it was before the invasion of the ukraine, and then the general premise was that emerging markets were the last to get vaccine availability they would naturally be the last to reopen and experience that gpd boost we've been experiencing in the u.s. and developed countries. it made sense that would be the next -- it's also incredibly cheap on a valuation basis valuation does matter right now. but then as the invasion of ukraine happened, it was an enormous commodity switching story. but it really goes well beyond that because if you look, for example, at the disruption that occurred during the pandemic, the disruption and supply chains really made us question do we

really believe in this last delivery or should we start on-shoring and near-shoring. that near-shoring play hugely benefits latin america >> that's a great point. supply chains being reworked across the board brian, we talked about sysco, some of the dynamics your other names, adidas more discre discretionary. why at a time like this? >> we think the athleisure trend is going to endure and if you really think about it, adidas and nike have been a natural duopoly in athletic wear for the last 30 plus years nike tends to trade normally in relationship to each other and due to the pandemic in europe, adee da das is down one-half of the multiple of nike we like that one here. >> all right i mentioned a couple of other

plays here ups. you say they finally figured out pricing. amazon is doing a big stock split and has been under pressure this year gina, what about u.s. equities more broadly what would you say to people worried about the turbulence we could face in the months to come >> well, so here's what we really kind of focus on. if you look at all the conflicts, the major global conflicts since 1947, most of them with the few kpepg exceptions were buying opportunities. the biggest exception was the yom kippur war you had oil prices being pushed up when inflation momentum was building that's what's interesting about that comparison to today and so what really sealed that deal was fed response. the fed was very aggressive. and i think all eyes right now are on the fed so whether or not this turns out to be a buying opportunity is going to be highly dependent on how the fed reacts to the inflation mounting and the impact that oil is having. and so we are really looking at

that as our signal for how we continue to play this. >> brian, quick last word? >> yeah. look, i think this could be a messy situation for a while. and i don't know how it's going to be resolved, but i don't think russian commodities, which is essentially the fear in the market that they won't be available, you'll have a commodity price explosion, i don't think they're going to fail to find their way onto global markets so it may be messy for a little while, but i would think about buying top quality franchises on sale >> we'll leave it there. thank you both brian, gina on these markets today. chinese internet stocks getting slammed this week. alibaba sinking more than 12%. j.d. dropping 23 % the renewed hurdles facing these companies and whether they could be delisted from u.s. exchanges. that's next. leaving you lost.

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welcome back chinese tech stocks collapsing alibaba, bidu, j.d. falling more than 4 % today adding to their already 11% declines this week shares of dd below $2 a share this morning trying to internet etf cropping 17%. 8 % today. joining me now is the chief investment officer brendan, it's just been going from bad to worse. and this is at a time when the macro guests on china are saying they're turning a corner this is the time to get in you can feel comfortable buying among side charlie munger, but this seems to have come out of nowhere. >> well, it shouldn't be a surprise that since the passage and signing of the holding foreign companies accountable act, we have taken this very

deadly serious we've started to convert we've moved k-web. we've moved a significant portion of our u.s. adrs converted them into the hong kong share classes in anticipation that the sec will fulfill the obligation as the enforcement agent for the holding companies accountable act. there's market participants that haven't taken that seriously or were unaware of it or unaware of adr conversion we're seeing this indiscriminate selling of u.s.-listed chinese adrs on the specter of adr listing in 2024. >> you guys have been doing this for some time, haven't you i thought we discussed this for a long time. >> yeah. certainly since this one -- this was a bill, we've been spending a lot of time on protecting as -- protecting our shareholders and so a year ago,

kelly, k-web was only 25% hong kong today it's 66% hong kong and by the end of this year, if not significantly sooner, we will have completely removed u.s. adrs out of w-web, and we highly recommend investors find out about adr conversion, about doing this transition that we've been going on behalf of our shareholders in k-web. >> the reason i want to scratch below the surface, this was a no known to you it's about converting from u.s. adr to hong kong, fine why is the hong kong market doing so poorly? it's at a five-year low. we've seen what's happening with covid cases in hong kong, and now there's concerns about that having similar effect in china i guess my point is i'm just not totally convinced that this selling is -- it may be cat liezed by this issue, but it doesn't seem to be fully explaining the behavior of hong kong and chinese stocks.

>> we've seen a significant disparity over the last year between the fundamentals of the companies and the price action so foreign investments who really reflect their opinion of china and china's economy through hong kong and u.s. shares have been very negative we can contrast that with what do investors in china think about china? so the shanghai composite was up 9% and 13% last year so you had this incredible disparity between what the chinese think about china and what foreigners think about china. and so some of this -- it could be u.s. china political relations. it could be china internet regulation it could be tax loss selling in individual names as we saw in november and december. the culmination, the sum of all fears is really reflected in the u.s. and hong kong names we can contrast that with the a-share market, the shanghai if you do kba versus k-web, you

can see the disparity. >> absolutely. would you say there's no larger macro concern as it relates to what's about to happen with the hong kong or chinese economy >> we think china's economy is getting ready to ease as the world is on the precipice of tightening so i think this is a little bit like listen, we could argue all day why people should be buyers and not sellers. but the price action is what it is there's certainly behind the scenes, if you do homework, you'd see that china is easing monetarily, fiscal support, and i think they -- hopefully i think china has a real strong incentive to helping find a peaceful resolution in hong kong due to importing of ukrainian wheat and natural resources on the russia side. >> why does a name like tencent jump out as one that's oversold here >> certainly inveenves investorn mainland china have been buyers

of tencent we can track that through the stock exchange they've been buyers of tencent stock over the last two weeks on this weakness. and if they're buyers, that's usually a very good sign they're buying tencent, and two others >> brendan, thank you for your time thanks for joining us. still ahead, the ev stocks are sinking after rivian reported that wider than expected loss and warned about a bunch of head winds. wasn'tthe sector supposed to b a big win fresh high gasoline prices here's a look at the biggest winner this is week on the nasdaq 100 cyber is the theme crowd strike the leader. we're back in a moment

welcome back, everybody. rivian shares down almost 8 % after the disappointing results and guidance it's not the only ev startup struggling this year it's down about 64% since january 1st while lordstown is down 37% if high gas prices aren't a catalyst for outperform, what is let's get more on that

come with me i'm going to take you to november 15th of last year just five days after the rivian ipo. this is what we saw. all the ev stocks, we're talking about rivian, fiscal, lucid. they were all at record highs. what's happened since then not highs. what happened since? not a lot. here's why there's challenges here. lower production guides. brought them down for rivian and lucid. supply chain woes. coming at the same time as the expected growth of evs made people say, yeah, i think the ev sales will grow. who will get most of the sales through 2025 as the industry moves up to 2 million in annual sales you have tesla, gm and ford execed to get the majority of the sales. not fisker, lucid and rivian and

ramping up production, with new plants for gm and ford and for tesla the texas giga factory is coming online. while there's anticipation to see the greater growth over the next decade or two decades, the startups are finding out just how difficult to ramp up production high gas issues is not it is not helping them with sales. if we have high prices a year from now maybe. >> like they don't want sales right now. i think the issue as well is the high ipo margt valuation more of a curse than a blessing. going public at $100 billion valuation what is left to grow into >> right well, that's a good point. keep in mind when all of that was happening i heard nobody,

not a single person in the auto industry or wall street that said this makes sense. it was complete froth with lucid and a number of startups the retail investor not alone but a lot of them i have had them stop me and say i'm interested in this particular company. i a lot of times say do you have a vehicle out yet? when will the sales start? that's not the question for a lot of investors i think that reality has set in. >> it is true. a lot of vehicles are beautiful. not the issue. it is just the size of the companies is a lot to contend with and we are in that contention phase. thank you so much. we appreciate it >> you bet. a quick programming note the president of blirnk

challenging will join us with brendan jones. ukraine's two leading neon suppliers have halted their operations the squeeze on the supply of a rare critical gas worsens the majority of us supply coming from ukraine and the two producers that just shut down. it casts a clud across chip production as they have specifications to avoid contamination. you can see some of the major chip makers down in the market today. cj is saying that many firms are preparing. they have 12-month supply. united electrohave access. the neon market is tiny in scale. that's not a huge profit margin

issue but a supply chain issue for the chip makers. they took precautions to diversify and less supply from ukraine than ten years ago and could lessen the blow in the near term but another material to watch for ripple effects here. oracle's earnings revoeled what could be a huge red flag. that's next. there's a new cnbc lineup starting monday. sara eisen with "closing bell" and then "closing bell" bell at 4:00 p.m i have it onhe t dvr back in a moment in many more cities.d mindy! with up to 10x faster speeds, she can download a movie in minutes or a song in seconds. (mindy) yep! (vo) verizon is going ultra so you can do more. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets?

yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -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. ♪♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it!

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so own it. and see how far it takes you. tonal. be your strongest. welcome back shares of oracle down today aftera big hit yesterday on the earnings report and not the quarterly numbers that raised red flags. let's bring in ari levy with

what he says is the warning sign for tech >> oracle has invested $625 million combined into 2 companies. a gene sequencing company and making server chips. because of the battering of growth stocks oracle had to take a markdown on the investments. if you look across the tech sector, am on, google, they have made investments in late stage companies over the last few years. some have gone public. some are still private but all going to have to take markdowns. the heart of earnings season late april something to be on the lookout for. oracle is relatively small investor notice tech space. >> the shashs are still up but

if they're a smaller player who in particular should we keep an eye on >> amazon is a notable one it just so happens that rivian reported yesterday amazon invested $1.3 billion in rivian the stock soared last year and so amazon took a large mark up the stock down over 60% this year and what's marked up is marked down. right? amazon has other investments in data bricks. during the peak of the private market hype. open ai. microsoft is in a couple of those companies and google in several companies. those stocks are all hammered. salesforce put $150 million in robinhood's ipo and that stock down 37% this year >> if they're interested in the

businesses now would be the time to maybe look at acquisitions or doubling down or -- but they seem to have bought more or less to the top with everyone else. thank you. we appreciate it. >> thank you. that does it for "the exchange." "power lunch" begins right now ♪ kelly, thank you welcome to "power lunch. on a busy friday afternoon, stocks are heading for their fifth straight down week as the russia-ukraine war drags on. vladimir putin saying there's positive signs in some peace talks but what does that mean? can you believe him? and as the war has sent gasoline prices to the stratosphere, record highs, electric vehicles look much more