whether or not it is very near term it is not typically necessarily a sign but definitely showing the sentiment change in the very near term. >> all right chris, great to have you on today for explaining what we are looking forward to at the close and so much more we appreciate it. >> thank you. that does it for "the exchange." thank you for your time. "power lunch" begins right now ♪ kelly, thank you welcome, everybody, to "power lunch. here is what is ahead. a key governor with hawkish comments christopher waller says inflation is raging. the fed is going to have to get more aggressive to fight it and now the markets are preparing for a half-point hike in may what does it mean for stocks we'll hear from an investor who says to expect another leg

lower. plus a big reason prices rise so much, continued supply chain pain, folks. china's covid shutdown, soaring shipping costs is costing you more which retainers are best positioned to handle it? we'll explain. kelly? >> trying to close a big week with 5 pat% gains. the dow up 87. nasdaq near session highs up 1.4% and a string of 1% gains this week. paul hickey saying last hour it is a positive sign crude with a volatile session after the more than 8% jump yesterday. seeing it consolidate it here. wti up around $104 a barrel. first weekly loss since 2021 snap and pinterest and meta and

twitter up more than 15% this week and chinese internet names continuing the climb they're all up more than 30% this week including the moves midweek. and the online retailer etf up 12% this week for its own best performance since april of 2020? ty >> despite the move lower the dow and s&p on pace for their biggest weekly gains since november of 2020 so is the all-clear for investors? next guest says, no. there's a leg down to bring a buying opportunity as investors sell everything no matter what the fundamentals sort of classic washout. joining us is greg branch, a cnbc contributor you say that all the good news for 2022 is in the market right

now and that the optimism is misguided. why so blue, my friend >> look. i certainly think that we are pricing in a best-case scenario. this rally is built on the sentiment that things are improving in the russia-ukraine conflict i would probably differ from that view. i think the current relevance reflects that the fed -- whew. the fed raised the rates and don't have to think about that anymore but we have seven more increases to come and so what you are seeing is people are slowly taking the estimates in notables have cut. i think consensus is seeing a significant corporate earnings growth deceleration this year and then in an environment with having corporate growth deceleration and the fed is

tightening we won't get multiple expansion and downside risk to where i'm at because i'm at low single digits on what i see as growth because of the many headwinds to face because of the many headwinds on the bottom line and the top line and further risk down. with $112 a barrel oil if the department of energy is right, with a tightening fed and a flattening yield curve that's a pre prescription for recession i'm not there yet on s&p but the likelihood to dip into recession far outweighs the likelihood of an upside surprise to the low teens or 10% growth that the consensus is expecting. >> take it altogether and you've got slowing earnings growth. you have rising interest rates which probably in and of itself depresses the multiple that people are willing to pay for stocks rising energy prices and high

inflation. and yet, i just began by saying that s&p and dow are having their best week since 2020 where's the disconnect are investors suspending disbelief? >> look. 30% reduction

in earnings and if we take the $55 from last year project that to be with mid to single digits around 240 this year and a 30% hair cut on that that puts us to where the s&0 times multiple, a far cry from where we are today and not necessarily calling for that but if energy contin payment companies, visa and

mastercard thank you. >> durable earnings growth thank you. gamestop reported earnings last night that disappointed nearly across the board bringing back to mind of the meme stocks. companies like gamestop saw big moves among a crop of young investors. over six months there's a huge reversal in the names with all seeing losses of 30% or more some more like 80% does the bigger money no longer see the value? bob pisani is senior markets correspondent and we have a cnbc contributor at "the wall street journal. welcome to you both. is this the end of the -- gamestop still higher i think than during the the meme days so i guess it's not totally over. >> boy is it different from last

thinking what's driving the stock higher this year the stocks have been hit hard from this market turmoil and significantly underperformed part of the trend of speculative investments falling whether it's arc or spac or meme stocks. >> looking at the meme it is all just jokes about what they would have been better off investing in i don't know if you heard the interview with paul hickey last hour and talked about tech regaining the mojo i don't know if that extends to the meme stocks or if the original meme crowd is holding them. >> the investor interest is much, much lower she is right we were doing 30, 45 million

shares a day in gamestop and then had the earnings report a year ago and a disappointment. the stock started to sell off and by april, may, june down to 4 to 10 million shares a day and then down again and trading 1 to 2 million shares a day in gamestop clearly lower. look at the fundamentals don't make sense on the price level. look what happened to the company last night no questions on the call again no guidance. they're going to be losing money for several years. had a loss the holiday season on a technical basis you look at the chart. anybody who bought this since february of last year and held is underwater. think about that everyone who bought since february of last year. >> gunjan, i think of last year

as a crowd sourced rally and the crowd has now gone and left. it's left the building all you have then got left from the fundamentals of companies that ain't got great fundamentals in many cases. >> that's right. so the journal checked in with the meme stock investors from last year and you do have some traders hanging on but one interview stuck out where a meme stock trader said i realized that the amc gains just luck he said i got burned on some trades later in the year so you do see people kind of pulling back and some people saying, look, this isn't the way to trade for me and better off to buy and hold. >> it did prove that crowd sourcing worked. we thought it would last for a day or a week.

it lasted for a year to have internet forums to drive the stocks it is a nightmare for the shorts and especially during that period is there anything for the s.e.c. to think through on the ramifications or the way they can band together to have access to the big moves that you could only an accredited investor? >> there's a lot to unpack in there. so the one great insight, the people who initiated this gamestop frenzy had is there's something that smells wrong to short more of a stock than shares outstanding that does not pass the smell test even if there are ways to be technically legal and okay. it doesn't pass the smell test people noticed that and correctly pointed out, you know, if we banded together we could do something

that's a great insight i think they will look at disclosure of short sales out there and to come out of that. something that gunjan was saying about etfs i want to see the 22 million robinhood users many involved in this gamestop and stay here in the market and not think this is a lot of baloney we want the young investors in and enthusiasm of them and want them to stay and be wiser. they're welcome here they're welcome to stay in and stay in the etf business and maybe stay longer term and not do day trading welcome. welcome all of them but don't be disk discouraged and don't walk away. >> what's the lesson of this >> for some investors i think the lesson is that maybe i'm better off not investing in meme stocks but i think the lesson for professionals even if

gamestop and amc are down significantly this year, professionals are still tracking retail investor activity way more than they were before this frenzy and many have gotten more cautious about shorting. so there's lessons here. >> gunjan and bob, thank you very much. coming up, more than 90% of retailers that reported earnings mentioned supply chain issues as a problem. how bad is it? anywhere from 195 to $1,000 of costs per shipment we'll break down the numbers and tell you which can withstand that margin pressure best. formerfdic chair said inflation will not peak this year but will get worse before better. she'll join us to explain why.

♪♪ ♪♪ ♪♪ you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

when it comes to cybersecurity, match the biggest threatstion. don't always strike the biggest targets. so help safeguard your small business with comcast business securityedge™. it's advanced security that continuously scans for threats and helps protect every connected device. on the largest, fastest, reliable network with speeds up to 10 gigs to the most small businesses. so you can be ready for what's next. get started with internet and voice for $64.99 a month. and ask how to add securityedge™. or, ask how to get up to an $800 prepaid card. retailers moving from sea to air in order to get around congestion but coming with a massive price. courtney ragan is here. >> the russian invasion of ukraine and new covid cases in china are adding time and cost to the already clogged global

supply chains. those kinks never fully worked out. they are among those that had to use more air freight than typical to circumvent congestion in ocean ports crocs said $75 million worth of merchandise. air is often more expensive. cost is determined by size and weight typically and ocean is mainly size. freight booking platform said the same shipment can cost $1,000 by air versus $195 by sea right now. the cargo rate for air to ship goods from asia to the u.s. west coast is 19 6% higher than a year ago from asia to u.s. east coast up 241% in a year shanghai to northern europe rates up 34% just in march and if you look at the numbers

purely $8.37 compared to prepandemic. some carriers are grounded or more longer routes to avoid russia air space companies reporting fourth results called out supply chain issues and while seeing 49% earning growth for the fourth quarter it is expected to fall more than 1% in the current quarter pointing to a slowdown in consumer spending particularly at department stores, mall stores and specialty retailers. i think they will have a harder time to pass along the higher costs to consumers going forward. tyler? >> thank you who's best positioned and will consumers stop spending if the prices continue to rise? let's go to jan niffen

jan, welcome good to have you with us. >> good to be here. >> our next guest sheila bair will say she knees inflation nowhere near the peak and not peaking until 2023 you don't really agree and may put you in a bit of a minority explain why you don't think inflation is going to be the sort of discouraging valiant that causes consumers to pull back. >> i am really concerned about inflation. i lived through it when it was tough in the business. i think we have about to see a peak and i guess mid year this year could she be right, 2023 i don't know we are about to see a peak meantime the consumer seems very healthy. everybody has a job. we are seeing an actually growth

in the workforce first time in a long time. people that get a job and believe they can keep it or get a better job there's good things happening with consumers i don't think we see resistance to price in the near term. when we do that would be a problem but i suspect by then inflation will start to e moll rate i think the consumer will overwhelm wit the $3 trillion of extra cash they sit on and all got a job and look like they can have rising wages so i believe we'll go forward and things will be fine but yeah i'm worried about it, about the fact it cost more to ship goods and think that's better right now. we have fewer boats on the water. i really don't think we lock down for a long time in china. if we were that would be a problem but i don't think that's what will happen i think it will be better than

last year and we handled it fine last year. >> so many variables and including retaliation if china steps in as a major supporter of russia in ukraine. let me ask you two things that i think concern consumers right now. gas prices you fill up a suv and almost every american household seems to have and spending at least $20 more than you did say a year ago. do that a couple times a week, a few times a month and looking at serious money for the average american consumer, number one. asking americans today do you feel safe about the world, do you feel safe, they will say, no >> that's my biggest concern isi ran the consumer comfort survey and it's as good as it's been in a very long time why would that be? because they have the ability to

spend and they every comfortable going and doing things not as afraid of covid so we have things going both ways i'm watching consumer confidence closely and concerned about the consumer getting freaked out about the ukraine, getting freaked out about inflation and gas prices there are not showing me that's happening so far will that eventually happen? yes. but that happens when they start to feel like they can't afford to do what they want to do and right now what they're saying is i can afford to do what i want to do and going do go do it whether you like it or not. >> let me ask about the stock picks here can't say walmart, target, amazon or costco. >> i like levi and local people do well and i like casey general store and food barn and tractor

supply the ones i did say i also like. >> we appreciate it hearing a lot about the big winners but we are showing the others to benefit from the trends you benefit. good to see you. we appreciate it. >> thank you. up next, another sign of the times. fedex earnings highlight problems in the global economy we'll dig into the numbers diamonds also in a rough spot as the u.s. bans russian imports and prices spike for a rare resource we have the details ahead on "power lunch." cody! hi!! hi! how are you? i'm good! i'm crocheting. i see that. started off as a hobby. kind of snowballed from there.

and alex, i don't want to stop. well, i don't see why you should have to. let's set you up with a side gig savings goal on the u.s. bank mobile app. this way, you can turn it into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality. u.s. bank. we'll get there together.

welcome back to "power lunch. the u.s. banning russian dimes with key products. with these already in rare supply how the dealers preparing heading into a key period for the business, wedding season kristina partsinevelos knows a thing or two about the season right now live in the diamond district with that story. >> reporter: oh! that's because i have been shopping around. in the market for the ring or just like some extra bling, you have probably set the eyes on

some russian diamonds because russia is a huge exporter of dimes accounting for one third of the rough diamond market. we know that the united states imposed sanctions against russia and diamonds are not supposed to come to the united states and you have several jewelers taking a stand starting with parent company of zale's and kay jewelers saying they're suspended operations with russian entities and then proud to remove russian diamonds from the website. both companies in the past week both climbing higher if you are an investor or want to get in on the market believing that demand will climb the easiest way to get in on the minors rio tinto is a good one and anglo american keep in mind this is where it is a little bit murky there's a loophole in the sanction so a diamond can go from russia to india or china and cut and polished there and then enter the u.s. market

listen in. >> these diamonds are now labeled as made in india and not as russia. hence, at this point of time, russian original rough diamonds do not really have a direct applicable sanction that will stop them from coming into the united states. >> reporter: and this i guess supply ruckus or supply chain issues right now come at a time with a backlog of weddings in 2022 expected to be the busiest wedding season in decades. and of course, you have supply issues, demand increasing and pub pushing up the price of diamonds in february alone up over almost 8% at this point and so we come from the diamond district here in manhattan it is not just diamonds. you also have prices climbing. we talked about it gold, platinum may not be the best time to propose or buy those special

blings i don't know just saying. >> don't let price stand in the way of love! that's all i'm saying. >> reporter: tyler, to that point, the reason why i decided to do the story and come up with the idea in the market for a wedding band and the jeweler told me to hold off with diamonds and just go for a plain gold band because prices gone up 30% for her. >> i love she didn't say 50% more >> all right. >> talking away a customer. >> reporter: i know. >> all right >> reporter: that shows she cares about relationships. >> congratulations. >> exactly. >> happy for you. >> big time. >> reporter: thank you. rahel? >> hi. here's the news update at this hour the united nations says nearly 6.5 million people displaced within ukraine since the russian invasion began on top of the 3.2 million people who fled the country. and new drone footage shows the damage to apartment build nuggets kyiv

officials say parts of a russian missile fell on the home there is. president biden and chinese leader xi spoke for nearly two hours this morning china says that xi deplored the conflict without assigning blame to russia and a chinese foreign ministry spokesman describes the u.s. position as overbearing the readout is expected this afternoon the international energy agency is planning to cut oil and likely face stiff opposition with restricting personal car use in cities, lowering speed limits on highways, and reducing air travel hopefully to get prices at the pump lower. >> thank you very much. ahead on "power lunch," inflation nation is it here to stay former fdic chair sheila bair said inflation will not peak any time soon. plus what impact is

inflation having down on main street how can businesses cope and thrive "power lunch" is bk a mentacin

this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app.

welcome back, everybody. 90 minutes left in the trading session. let's get caught up across stocks, bonds, commodity and the state of inflation in the economy. start with stocks higher again right now. little off session highs s&p up 26. nasdaq the strong performer up 1.3% talking about the largest weekly gains since november 2020. up 5%. utilities are the laggards today. tech is leading for the day and the week this is a development to watch salesforce, nike, visa and amex are the dow leaders today. let's get to the bond market and yields are slipping after crossing some key thresholds this week. rick santelli tracking the action for us. rick >> yes you know, uncertainty covers weekends and makes traders try to lower the tolerance of pain and we are seeing some of the selling action in treasuries this week moderate just a bit

but it is a wild week so here's a week to date of 2-year up 3 basis points on the session. up 20 on the week. 10-year down 3 bases points on the session but up 15 basis points on the week maybe the biggest action may have something to do with foreign exchange and specifically the bank of japan today and energy bank of japan decided the heck with the other big central banks. we'll pile on stimulus and not worry about it for now what happened? look at the dollar-yen the dollar at an over six-year high back to early 2016. and if you look at the dollar versus the offshore chinese yuan this chart start it is beginning of february. you know when the dollar bottomed the dollar bottomed against chinese currency the day of the inflation and turned up. ponder that for a minute stick with the chinese currency.

here's the yen versus theoff shore yuan at the worst level on the yuan is stronger since the end of 2015. the yen is finding pressure in every direction. finally the yen versus euro currency motto date chart moving down. why? they don't have energy the other issue is central bank and maybe the first one is bigger they have relationships with russia on energy shell pulled out but japan didn't they have an issue and the markets really focusing in on it back to you. >> after a strong yen being a problem for so long definitely weakness there now thank you. over in the oil space over $100 a barrel to end the week and still in the red pippa? >> red for the week but green today. gains over two days not enough to make up for the heavy losses

as china's lockdown spurred fears and as the war stretches on the oil on the water and what morgan stanley calls destiny unknown is rising. wti up 1.6%. that is off the highs of the day and a second straight week of losses for both. we just got the latest rig count da data and declined a second time in three weeks and barclays saying they don't expect a jump in production and the firm raised the targets for players across the board saying the valuations reflect oil at 61 bucks. back to you. >> washington will not be pleased about that pippa, tch

have gone up dramatically, housing prices, the numbers don't flow through into the inflation measures forfully ref until the first quarter of 2023. but housing prices have gone up. 10% the year constraints

already and with the ukraine war those have been severely exacerbated. energy in particular flows through to everything. transportation costs processing, packaging. the agriculture commodities themselves, the black sea ports are shut down. ukraine's a significant exporter of agriculture commodities, especially in the middle east where we're already seeing some food insecurity, significant issues but again the market should correct and stimulate production elsewhere and takes time to react to reallocate the acreage so we haven't started to feel the full brunt of that and takes time i think 2023 is much more likely to be seeing the peak. i think it's also important not to overestimate the effectiveness of the fed's tools to combat inflation.

it is demand driven and the supply constraints are real and difficult for the fed to leverage to address. >> we have less stimulus in the system and less dollars from the federal government and from the my word, not yours necessarily, bubbles. bubbles in housing, oil, food, markets, bonds, stocks bubbles don't usually end well. >> yeah. well, when it comes down it can come down quickly and monetary policy has inflated. we have an everything bubble and acute with financial assets, stocks and bonds and been a factor with commodity prices, real estate prices commercial and residential. over time as interest rates go up those valuations start to correct and that's another real danger with what the fed is trying to do now remember 2004 to 2006 when the

fed raised rates about the same pace they predict now that popped the housing bubble by 2008 we had a real problem and now an everything bubble so i think the fed needs to be careful. i would not be too aggressive and live through more inflation than another financial crisis and bring recession and a lot of hardship for a lot of people. >> the cliche is that the fed wants to achieve a soft landing, always when things get - >> right. >> would you say the odds of that are long? >> i think they're very long, yes. they're trying to both raise rates and shrink the portfolio by rolling off the investments they made. we don't know the details yet and sounds like they'll be aggressive i think that is difficult to do. 2017 to 2019 trying to do both simultaneously with a significant disruption in the markets and in december of 2018

which was brought on the powell pivot and started to reduce rates and so would suggest to me to have a hard time to hold on this i find susceptible of a soft landing and don't want continued inflation. it is eroding real wages and recession risk is worse and should go more slowly than contemplating. the risk of disruption is too great. >> to kind of put a point on that, the interplay, why do you think it's more important for the fed to lean hawkish here and not err on the side of caution for the economy? >> i actually think they should be gradual on this i am -- look i don't like the zero interest rates. haven't liked them for years

i think the fed is not acknowledging the bad side effects of highly aggressive monetary policy. created significant gaps a huge build-up of leverage. household finances are in pretty good shape companies, governments have levered up and then the asset bubbles. this is all the a direct consequence of monetary policy so over time i want the fed to try do get back to a more normalized interest rate environment and that transition is tricky and i do think the risk of recession, i worry for main street impact and a recession than i do living with inflation longer so i actually think they should be going more slowly than what they have suggested they will be doing. >> a needle to thread for them. >> it is. >> great to have you tods. thank you for your time. >> thank you. >> sheila has a new release in the picture book series. this one is called "shark scam."

i should add it to the growing collection. >> you should. the worries, all driving up main street so how are businesses staying afloat in the uncertain times? looking at that heading to a break check out wing stop. the stock falling after piper sandler double downgrades the stock to a -- oh the dreaded double downgrade the stock will fall 15% struggling to keep pace with peers. it is the first time an analyst is bearish on wing stop in more than two years >> wow you can't buy love. happiness. or confidence. but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. ♪ ♪

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

inner voice (furniture maker): i'm constantly nodding...

...because i know everything about furniture ...but with the business side... ...i'm feeling a little lost. quickbooks can help. an easy way to get paid, pay your staff, and know where your business stands. new business? no problem. success starts with intuit quickbooks. as main street businesses are continuing to make a comeback post-pandemic they face down the triple threat of supply chain headwinds, labor constraints, and his tore ic ick ickes -- historic inflation. kate rogers here with more >> hi, tyler

data of goldman sachs 10,000 small business voices finds nearly 30% of owners say they expect to take out a line of credit or loan but the small business this year and about 31% say they feel very confident in the business's able to access capital but black-owned small businesses reported expecting to borrow at a higher rate of 48% with less confidence about the business's ability to gain access to the capital at 19% a woman ran into this issue looking to get off the ground with a business in 2013 saying she was offered for a loan for a piece of specific equipment and nothing more. >> there was no discussion around like working capital and things like that so i think that's -- that's the disconnect a lot of times. specifically for black-owned businesses >> but pugh worked to build up banking relationships and secured a ppp loan from a community bank

the bakery while facing major headwinds like inflation has grown the sales over 40% from 2019 levels and just purchased a new building to open up in quite a turn around from the start of relying on her and her wife's savings to get the business off the ground. back to you. >> thank you. the fed finally stepping in this week and raising rates as inflation runs wild. are they too late to help and what does it mean for the markets? ron insana weighs in next. lkingr years, we got married... for the family plan. (jane) and then we really expanded our family... for the wireless savings. (ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed. (vo) family plan savings without the family.

visible. unlimited data and hotspot included. switch now and get 3 months of wireless for $20 a month. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

a wild week for the market, but a pretty good one. stocks adding to a huge three-day rally. now on pace for the best week since november of 2020 who would have thunk our next guest says the bull market has been over and the bear market started at the beginning of the year. let's talk to ron insana, also a senior adviser to schroeders north america. you agree with our first guest of the afternoon who said that the market really was sort of overoptimistic right now >> yeah, i think in many ways

that's true, and i would guess at least this is just a guess at this point in time, what we have experienced is a bear market rally. like corrections in the bull market are short, sharp, and scary. rebounds in the bear market are short, sharp, and alluring there are still quite a few headwinds. what a fed won't be able to do is fix all of the things not only your first guest talked about but courtney talked about with respect to retail i think the headwinds still outweigh the tailwinds for the moments and we need to see as much time put into repairing this market as price >> we just talked to sheila bair and her view is inflation has nowhere near peaked. will peak maybe and start to abate some time next year. i asked her whether in the classic cliched parlance, the fed can achieve a, quote, soft landing. she said no.

>> it hasn't been done before. i was talking to my league yesterday who is on our fixed income team, and she said when your only tool is a hammer, everything looks like a nail that's where the fed is. we're short 5.8 million homes, all these shipping costs, things that have absolutely nothing to do with fed policy have been causing inflation. the ukraine war has extended everybody's outlook for inflationary pressures which is something we didn't fully anticipate coming into 2020. i think it's rougher sledding and the fed is right to normalize policy i'm not sure that their policy maneuvers however will have the desired effect given that much of the inflation we're experiencing now has a lot less to do with monetary policy than prior periods. >> is the soft landing so rare, though, ron? i'm thinking about what paul hickey told us last hour, that the markets stipically up after a tightening cycle begins. we know looking at the market's performance over time, it generally trends higher every

year with a couple of exceptions so is it that unreasonable to think the market can digest this, especially given the bullish reaction so far to a pretty hawkish fed >> it's interesting when people say that about tightening cycle, we can also go back to edison gould who came up with three steps and a stumble where stocks fall after the third rate hike with respect to the outlook post tightening cycle, the fed usually goes until something breaks and then they turn around and start easing and the markets rip to the upside. apparently we're nowhere near that the fed's dot plot suggests seven hikes this year and an additional four next year. if we see all those hikes in a row, i doubt we'll have the same tightening usually the market starts to turn when it's anticipating the end of the tightening cycle, not when it starts >> all right, ron insana, thanks very much. have a good weekend. >> you, too.

thanks for having me >> fedex is facing a slew of issues between inflation, labor costs, and more. should it be a warning sign to other companies as they report earnings and the season really gets into swing next month we have more in a moment

welcome back to "power lunch," everybody. shares of fedex all almost 5% lower today. take a look at some of the headlines that caught our attention from their earnings report last night which sent the stock down after they missed on

eps. staggers numbers about cost. fuel surcharges were over 12% versus 5% a year ago but their jet fuel costs were up 66%. ground express up 12%. the company saying we saw higher rates for purchase transportation and wages it cost them an extra $350 million in the quarter they also said the big period of growth of e-commerce is now behind us and the global supply/demand equation has changed a lot with the recent events by the way, shares of fedex down 16% year to date rival u.p.s. up 4% >> you think of fedex as one of those kind of bulwark companies that -- but you see that they're having to be absolutely transparent and say the big period of growth in e-commerce is probably behind us. i seem to get some package every day at my house still, but yet it is not the same way as it was. i go to the mall again >> it's a fascinating flip side to what courtney was telling us earlier on, where companies have

to pay up for air, you know, or to ship by ocean or air. you name it, you think fedex would be such a beneficiary of that, but they can't stay ahead of that. >> you look at the two biggest cost centers, fuel and labor, and they're both up. have a grade weekend i had the worst bracket in america, by the way. >> "closing bell" starts right now. >> stocks near session highs, on track for their best week since 2020 the most important hour of trading starts now welcome to "closing bell." krm sara eisen happy friday here are your top takeaways on the biggest story. fedex showing inflation can cut into growth. in the earnings reports, you saw the shipping rate increases. sales look great, as a result, up 10% volumes not so much. fedex only shipping an average 16.8 million parcels a day in the quarter which was a design and a disappointment sure it could be partly omicron, but also a sign that higher inflation can take a bite out of