house might need some upkeep >> does he still have russian citizenship, too i assume he does >> yes, russian, israeli, and portuguese those are his three citizenships and his ex-wife and daughter are both u.s. citizens and live here in new york city >> all right, thank you, robert. >> robert frank, on it as always thank you for watching "power lunch. >> "closing bell" right now. >> stocks are firmly in the green, and yields are at multi-year highs the most important hour of trading starts now i'm sara eisen here's where we stand in the market rising again, the s&p higher for the fifth time in the last six sessions and up a full percent the dow is off session highs but still up more than 200 points. the nasdaq is doing the best of the big three, up 2% right now technology and consumer discretionary in the lead. small caps also coming back up more than 1% we're higher for the month of march, and we are building on last week's big win streak here are my top takeaways on the

biggest stories today. nike jumping you'll hear analysts talk about china, supply chain improvement, pricing power. all true, but one thing to pay attention to that nobody is talking about now, nike's new virtual strategy in the call, the ceo announced nike virtual studios to build web 3 products and experiences and to scale it. nike acquired a start-up artifact, launches its first nft. nike was occupant of the pack on digital, so watch this space >> a lot of companies did well in the pandemic and into this year because of lockdowns, work from home, virtual school, and consumer staples especially, but that trade is not working as the pandemic fades and life returns. truest says it's time to buy p&g, procter & gamble, because it actually emerged stronger from the pandemic and is ready to separate from the pack. it got a temporary lift from pandemic trends. >> why are stocks rising and bond yields shoot up usually, this kind of rate move spooks stocks, especially

technology one theory, fed credibility is bullish for the market fed chair powell's pivot and tough talk on inflation this week restores cred to a central bank that was behind on the inflation fight. as iron sides said in a note today, it's bullish for the asset class that benefits from capital formation, productivity, and real growth. namely equities. >> let's get straight to our top story. yields on the shorter end of treasuries jumping to multi-year highs. it's happening faster than longer term yields, fueling a debate about whether the bond marking is about to signal a recession. joining us, brian deese from the white house. great to have you back on the show welcome. >> happy to be here. >> so you're an economist. you follow the yield curve fed chair powell played it down yesterday. are you worried about recession signals? >> well, when we look at the strength of the economy, we try to look at indicators across the board. and i think one of the striking

things about the economy right now is the resilience of the american consumer and demand we're seeing that in data over the course of the month, and so we continue to believe that we have got a resilient economy with a very strong labor market and with a consumer that is continuing to sustain and has continued to sustain through a number of shocks and changes as we have come through this recovery so that's our assessment as we sit today. obviously, there are risks and uncertainties looking forward, but the strength of this recovery is quite notable. and so we believe and expect that will continue >> strong enough to handle seven, maybe eight interest rate hikes this year? that's what the market is starting to price in >> well, look, we have had a historically strong economic recovery the economic growth that we have seen is the strongest in 40 years. the labor market performance is the strongest we have seen ever in a modern economic recovery, and we have seen that through a number of unexpected twists and

turns, including the pandemic and the delta variant, the omicron variant, some of the supply chain challenges, and obviously, we continue to have real challenges on the supply side of this economy and with elevated inflation, but we think that the most notable issue right now is the resilience of the american economy unique among advanced economies in the world the president is heading to europe later this week, and the american economy stands out for that resilience as well. >> but the inflation picture has changed. and it's gotten worse. i know you met with ceos yesterday, brian what did you hear from them and what did you tell them about what you're expecting now as far as how long inflation is going to last, especially with this new shock we're seeing in food and energy prices? >> well, we had an important meeting with ceos from sectors across the economy yesterday the principle focus was on the war in ukraine both in terms of giving them an operational update on facts on the ground and our sanctions and

export control efforts to thank them for the work they're doing in partnership with the government to effectuate those sanctions and for a number of companies to take individual steps as well. and then to talk through the outlook and the resulting impact on the global economy and the american economy the good news is that the sanctions package and the impact is being principally felt by the russian economy, and we're taking steps to mitigate wherever we can the impact on the european economy and the american economy, but there will be impacts certainly that's true in energy and gas. we talk about the ways in which we can continue to work together to maintain this crushing blow on the russian economy while mitigating the impact here at home >> there was also discussion of cyber threats, and president biden warned ceos that's evolving evidence that russia is considering launching a cyberattack. they have a duty to step up spending on their defense.

what more can you tell us about which industries or sectors might be most vulnerable >> i can tell you the president made a very clear call on the corporate community to do everything they can to harden their cyber defenses for critical infrastructure, which in the united states is operated principally by private actors. this is not an issue that we come to recently we had been working for months with the private sector around how to encourage them to take steps to harden their own defenses but it has been made acute right now because the russian government has these capabilities it's signaled its intention to use them, to react to and to respond to the sanctions package that we have put in place, so everybody needs to be vigilant and on a high state of alert one of the things the president underscored is for many of these companies that operate critical infrastructure, this is not just about the benefit of their shareholders and their stakeholders the benefit of the broader american public and the broader

economy is on the line, and so therefore, it's important that we all do everything we possibly can at this moment i can't tell you when exactly russia may act or on what sectors. >> have we seen anything yet is there evidence that has started? >> we have not seen any evidence of wide scale or very targeted efforts at u.s. firms. we have seen some activity in ukraine that has spilled over and has had some impact on european and some cases american companies. but the fact that we have not seen it yet should be a reason for vigilance and for action, not complacency. this threat is real, and that was what the president tried to underscore a lot of partnership between the federal government and private sector is going on that's a good thing, but everybody needs to step this up and be on a high state of vigilance. >> those cyber stocks flying today. thank you for joining us with an update from the white house on that meeting >> after the break, a slew of airlines have come out with bullish demand forecasts

but what about the cruise lines? we'll ask carnival's ceo, arnold donald, about what he's seeing from customers you're watching "closing bell" on cnbc. dow up about 225 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.

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the miss was blamed on omicron, and now you're talking about very strong booking volumes that you're seeing. what's driving that? is it simply getting out of a pandemic phase talk a little more about what you're seeing. >> absolutely. we have about 75% of our ships as of march sailing again, which is fantastic we have seen unbelievable strength in bookings in our carnival brand the past three weeks, our wave season type bookings, so extraordinary bookings at higher pricing so we have a lot of momentum going. of course, we have had to change some itineraries over in europe so i would like to take a moment now to say along with everyone else, we stand for peace we have thousands of employees from the ukraine and -- from ukraine and russia, and our heart goes out to everyone who is being directly impacted, whose loved ones are being impacted even with those sailings, while we had to pull out of russia, we

have been able to replace it with itineraries going to different places in sweden and latvia and norway and denmark. so things are really positive for a demand front and from a booking front looking forward. >> even in the international cruises? is that where people want to go right now? because what we hear from the airlines and hotels is that there's this boom, but it's largely domestic >> keep in mind that we're a global company we have nine cruise line brands, and they sail and home port all over the world we source a lot within europe. and of course,europeans, many of them still want a vacation. and so those brands are seeing good booking strength. and good onboard yields when people are onboard as are our north american brands so yeah, you see pockets of where people may have some sensitivity to specific itineraries or specific locations, but overall, north america and europe as we said in our business update today, we have good booking momentum at

strong pricing >> so on pricing, fuel is definitely going to hurt hurts the airlines, certainly hurts you guys how much of a damper does that put on the financial recovery that you expect, and how can you offset that? are you raising prices >> well, what we do first of all is manage consumption. we have done a good job of that, so we have had a 30% reduction in unit fuel consumption since the 2000s and done very well with that. we have additional opportunity for reduction in consumption both because we have 25% of our ships will be new ships once we are back at 100% we took out less efficient ships, about 22 of them, plus we have many initiatives onboard our ships for a better fuel efficiency, from itinerary planning to fine tuning the engines to using different lighting, conservation onboard of water as well as food waste

and so on. so we have first and foremost consumption. fuel prices go up, they come down this happened through time we suffered through fuel spikes before and we'll see how long this one persists and if it does, we'll take a look at other actions to take if that proves to be necessary. >> when, arnold, do you feel like you're going to be back to normal as an industry, as far as demand, capacity, service? there's so much coming at you. i know you got the level lowered by the cdc, which was probably good news for you. but when do you go back to normal >> yeah, the world is always not normal and so for us, when are we going to see a return to 100% of our fleet and ebita greater than what we had in 2019, et cetera right now, we're looking at positive ebi abita in the third quarter, so in '23, we're

optimistic we'll have the full fleet sailing. we already have 40 sailings already now that are at 100% occupancy, so we see that as additional indication of strong momentum so we have to see what happens around the world because you never know but based on the trends today and the demands today, we're optimistic in '23 we can return to seeing 100% of our fleet sailing at the occupancy levels and at stronger pricing. >> almost 30% of americans are not double vaccinated, arnold. doesn't that represent ultimately a challenge if you're doing these 95% vaccinated cruises in terms of demand >> well, sara, the way things have worked out for us, and we worked very hard with medical experts and scientists around the world, in fact, the incidence of covid cases is lower, consistently lower onboard the ships than they are shore side than they are in land

communities. we have been very diligent with testing, with vaccinating our crew >> but you have to be vaccinated, right? to get on? >> right now, you have to be -- 95% vaccinated in the u.s. so we are, for example, children under 5 are not counted against that, and then we do have at some exceptions for other reasons. so at this point in time, we'll see how that plays out over time, as the world has become increasingly vaccinated and as the virus has had variants that have not created hospitalizations to the same degree or worse, then it becomes something that we learn to live with, becomes an endemic versus a pandemic we'll see if that trend continues. the variant b that people are experiencing around the world, again, while people have it, they don't seem to be as sick. of course, we have better treatments now, a lot of people are vaccinated all of that contributes to that. and as society moves forward and learns to live with the virus,

then things are returning to more normal. and that's the trend we see now and people are having a great time onboard they're spending more money than ever, but more importantly than that, they're creating those joyful memories and moments which is why they cruise in the first place. it's going very well and has been for some time >> good to hear. arnold donald, thank you for the update >> thank you, sara >> ceo of carnival >> after the break, the flattening yield curve leading to some questions about whether recession is looming, but mike santoli takes a different indicator th cld eatouase some of those fears he takes a look in the dashboard next get in the back. look, your cousin dared me. i had no choice. my cousin is twelve. this is your captain speaking... 'cause they're like... captain's chairs? to be fair, i did say heads up. to be fair, you're sleeping on the couch. hey mercedes, change lighting to baby blue. i think you're actually more annoying back there. get up here. the mercedes-benz gls.

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what will you do? ask your doctor about nurtec today. nasdaq up 2% as we head to the close. technology and banks are what's leading the rally today. you're seeing it in the big cap tech, the ships near session highs. the s&p up 1%. the treasury yield curve continues to flatten today, sparking fears of a looming recession. brian deese from the white house isn't worried about it and neither is mike santoli who is

looking at one other indicator of a potential recession >> yes >> not so bleak. >> the index of leading economic indicators a composite, not just a single source the new york fed has a yield curve based recession prediction model. it's one component, the three-month treasury yield verses the ten-year. this is a composite of things which over a long span of time, it goes back over 60 years, has almost always rolled over before the shaded area, which is recession. there's almost no recessions that have not had this really degrade a little bit before you get to a recession however, 2020, there's a difference that wasn't a normal recession so it is still pointing higher it was actually higher in february versus january. january dipped a little bit. this is at least a slight reassurance that even if things are slowing down, even if the risks are rising, we're not on the precipice most likely of a domestic recession >> it's a number of indicators compiled into one.

>> the stock market is included in there, and i believe there's some employment in there, manufacturing stuff, maybe credit markets as well so it's a blend. it maybe isn't perfect, but i do think there's some reassurance for people who are screaming about the ten-ten. >> pushback against all that negativity meme stock mania is back gamestop and amc soaring right now. up next, we'll get reaction from interactive brokers chairman thomas peterfy when we come back ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina?

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gamestop, up 25% today other meme stocks higher as well amc up 14% blackberry, bed, bath, & beyond also outpacing the market. joining us is thomas peterffy. it's great to have you you sometimes overlap with the robinhood set, but you claim you have a little more sophisticated investor what does this kind of action in these stocks tell you about where retail traders are right now? >> well, i don't think this is a good situation for retail traders because in the fullness of time, these stocks are very likely going to go to zero so somebody's going to end up holding them at the time, and they really go to zero

so i hope that not many of my customers, interactive broker's customers are not in these stocks >> what are you seeing from the interactive broker's customers in terms of participation and appetite for stocks right now after a pretty brutal start to the year but a nice bounce in the last week and a half >> yeah, so interestingly enough, our customers, interactive broker's customers are not participating in this latest rally in spite of the fact that the margins are as low as 1.83% to all the way down to 0.83%, our customers lows have decreased by about $8.5 billion or roughly 7% in the current culture similarly, free cash deposits have increased by 7% to $95

billion. so most of our customers do not seem to believe the current rally, and i think -- or they think there will be a better opportunity later to get back into the market. >> so pretty defensive posture there. that what you would say? what about overall just activity as far as stimulus checks have faded and the fed is tightening interest rates what about just retail investors' embrace of the markets at all >> so our average customer has about $200,000 so these are more sophisticated customers than people who are basing their investments on relief checks. >> what about technology in particular what have you seen as far as inflows and outflows and that once beloved part of the market that has been most vulnerable to

what's changed here? >> so i think they are all worried about the fed hikes, right? and although i don't think that the fed will be able to raise rates high enough to stop infl inflation. i think this is because they don't want to appear to be starting the recession right before midterm elections second, the higher they raise the rates, the higher interest rate payments will become on the freshly issued debt that will contribute to the nation's indebtedness i think treasury made a big mistake in not refinancing at much lower rates while they were available. and the situation is further aggravated by the very high

level of borrowing in the private equity space where managers have been trading companies among each other at higher prices loaded with more and more debt. that works just well when interest rates were zero, but maybe not work at 3% to 5% so i think we'll see a lot of bankruptcies in this space >> i know you have been warning of that, and worried about it. what about your own results? do higher interest rates net-net help your earnings or hurt because of what you just described? >> i just said that we're sitting on $95 billion of customer cash. so obviously, higher interest rates are going to be helpful. yeah >> thomas peterffy, appreciate you joining us >> thank you very much >> always good to get an update. here's where we stand in the markets right now, going strong into the close, the dow up 240 points

technology is in the lead. as i mentioned, nasdaq hit harder than the rest this year, it's up 2% the s&p up 1%. small caps up 1% as well up next, venture capitalist and crypto investor katie hahn on whether private crypto company valuations are starting to look peive. power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most. plus, zero-dollar commissions for online u.s. listed stocks. [ding] get e*trade and start trading today. never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contracts prices around. [ding] get e*trade and start trading today.

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what's wall street buzzing about today? venture capitalist and crypto investor katie haun, after leaving her high profile role at andriessen horowitz, now breaking records with her $1.5 billion debut fund kate rooney sat down with haun with her first interview after leaving. >> this is the largest debut

venture capital fund ever by a female founder and the biggest debut crypto fund. haun ventures is going to be split into two parts $500 million for early stage investments and $1 billion for later stage growth side. haun led and co-led andriessen horowitz's multibillion dollar crypto funds before leaving the firm in december she was an early investor in coinbase and sits on the board a smaller team will help her be more nimble, and she tells me bitcoin prices and publicly trading crypto companies getting hit is not spilling over to start-ups quite yet. >> we're still seeing very high valuations in the crypto space i will say some of the high valuations, you know, some of those companies are actually profitable and have metrics that you can go look at so i think it's important that we don't treat crypto and web 3 as a monolith because they really are very different in terms of what problem they're tackling and different projects out there. >> haun has invested through

multiple bear markets, sometimes called crypto winters and says that's when? of the best companies are built, and as far as where the opportunities are, she mentioned blockchain gaming and identity verification sara >> we will watch it. kate, thank you. kate rooney on the buzz. >> when we come back, nvidia unveiling a new chip aimed at speighting up a.i. computing and tesla cuts the ribbon at its german factory and soared to the top of the s&p 500 those and more when we take you inside the market zone i wasn't there for my family and i was barely functioning. until nurtec odt changed all that. nurtec is the only medication that can treat & prevent my migraines. don't take if allergic to nurtec. the most common side effects were nausea, stomach pain, and indigestion. now, i run a non-profit for other green berets. when i feel like myself, i can do so much more. what will you do? ask your doctor about nurtec today. ♪♪

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[sound of helicopter blades] alexa, turn on the subtitles. and dim the lights. ugh... they found me. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcome to a new chapter in investing. [ding] e*trade now from morgan stanley. 20 minutes left of trading we're now in the "closing bell"

market zone. mike santoli here to break down these crucial moments of the trading day, plus raji gill on nvidia's new product announcement jed dorshimer on tesla beginning deliveries in germany. first up on the broader markets, stocks are rebounding again after yesterday's big sell-off, the major averages are near session highs. dow up 250 nasdaq now past 2% or so mike, and what stands out today is that treasury yields are really jumping we're seeing fresh multiyear highs on the two-year, the ten-year, they're at 2.38% usually, that would spook equity investors, especially in technology, right? you worry about the effect of higher interest rates on the economy and on longer duration assets what does today's action tell you? >> obviously, treasuries were in the wrong spot for a fast tracked fed tightening program that they're now talking about so there's no doubt about that the cession is how rapidly the market itself might adjust we're now up to levels of yield

that treasuries have not spent a lot of time above over the last let's say eight years. i mean, 2.4% on the ten-year, yes, at times in 2019 and a little bit before that you did get above that in 2017, but not a lot of time. we don't necessarily have a stock market that's been stress tested for that level. ien i don't think there's anything magic aboutthosis thresholds when it comes to tech, we had a 20% pullback in the nasdaq the performance hit a new two-year low a week ago. so all we're doing is doing some catch-up the duration discount back at a certain rate, the earnings to long term assets, that story is a small piece of the valuation puzzle final point, if we're slowing down, you go for the stocks that can grow earnings which growth stocks >> true, which is working today. nasdaq still about 13% off the highs. s&p, mike, wanted to also note, we did pass 4500 for the first

time today since february. give us the santoli big pick on where we are, this move, after last week's big rebound and now some follow-through today. >> a lot of folks focused on an area about 2% up from here, just under 4600 if you look at that chart there, it basically twice in february, that's where the index peaked out. even when we were at the lows, a lot of folks were saying, even if we bounce from here, we're probably in a range that goes from 4200 to 4600. so we may be relatively close to testing that proposition, like i said, 1% or 2% up from here and you'll be just about at the doorstep of it >> up 1.2% nvidia announcing several new products today, focusing on a.i., enterprise products, and teasing plans to build what it says will be the world's fastest supercomputer. shares are down today but have gained about 20% since last monday let's bring in analyst raji gill welcome. what do you think were the biggest takeaways for investors

today? >> well, this was probably one of the most comprehensive, most compelling analyst days i have winced for nvidia and i have been covering nvidia for well over a decade. there are a couple kind of major things that were quite exciting. number one was their new gpu, the hopper h-100 processor that this has 80 billion transistors at six time the performance of the previous ampere architecture that was introduced two years ago. one of the interesting stats that the ceo mentioned, if you have 20 of these h-100s, it could basically power the whole world's internet traffic that's how powerful and computational this new chip is so this chip basically is going to enable the adoption of more advanced machine learning and artificial intelligence at enterprises, whether that's systems, genomic sequencing,

natural language understanding so because of the raw speed it will enable that level of processing i think the second thing that was very interesting, and i think speaks to the longer term potential of nvidia as a software opportunity, they outlined about a $t300 billion tam just in software, a longer term subscription software model, by licensing their software to enterprise servers and also to the omniverse. >> this has been one of your themes, invadnvidia into a softe company. why do you think the stock is lower today on the back of some of these pretty bullish announcements? >> the stock, as you mentioned, rallied 20% heading into this analyst day. there might have been expectation the cfo would have raised the near term outlook, but to me, this is just kind of near term kind of trading. the bigger picture is the revenue growth, the earnings

growth, and the tam. the total addressable market that's available for nvidia. and if you look at nvidia, nvidia has been growing about 200% over the last four years. it's grown earnings, net income, 300% over the last four years. it's one of the most pristine financial companies not only in semi-conductors but in all of technology and the tams are enormous. $1 trillion tam. >> are you changing your numbers on -- it's still about 24% off the highs for nvidia are you changing your numbers, the valuation on the back of what you heard today >> i have a street high price target of $400 the $400 equates to $1 trillion market cap company this will be the first $1 trillion semi-conductor company. that only is about 50 times next year's earnings. so i have them doing about $8 of earnings and the multiple extended back

to 50 times. at one point, nvidia was trading at 60 times. the multiple is compressed five times, but if you look at other tech companies like tesla or software companies that basically either have no earnings or a fraction of the earnings, they're trading at well above 50 times already. so 50x times $7 to $8 of eps is not that far fetched and i think it ultimately will get to it. >> any implications for any of nvidia's competitors or maybe it's suppliers >> i think this is -- there really is no competitive implication except maybe perhaps to intel but essentially, nvidia has been at the forefront of pushing artificial intelligence and machine learning into the enterprise, into the hyperschyperscale s, into vertical industries. this is a secular theme, this is not going to slow down, and then the ultimate move to 3d virtual

worlds through the omniverse, virtualizing physical worlds, whether it's designing skyscrapers or buildings and doing it in a virtual world enabled by nvidia software, this is again a completely new market that nvidia is leading so it's not really relevant to look at the competitive landscape. it's really more relevant to look at where the revenue growth is now and can it grow into these massive tams that are available to the company >> a lot of people watching tsmc as well, long time supplier for intel. thank you for joining us on nvidia >> shares of alibaba surging today, up 11% after the chinese e-commerce giant said it would increase the size of its share buyback program from $15 billion to $25 billion largest ever buyback for baba. over all, it's been a volatile year for the stock and all the chinese internet stocks which continue to face regulatory tightening from the chinese government today's gains nearly wipe away

their losses for 2022, but not quite. the kweb etf, which tracks the the tire group of chinese internet is up 8% or so as well. mike, i mean, it's been a pretty big comeback hard to call the bottom when you're dealing with china. there's also a report from reuters today that china's reg yltders were asking some of these tech companies to beef up their auditing disclosures which could be taken as a good sign. >> hard to call the bottom there, except when the chinese authorities are working hard to send the message they think a bottom should be put in here by having a different tone in their messaging to companies and investors, clearly, alibaba with this pretty aggressive buyback announcement that amounts to about 8% of the market cap over a couple years, they might do the buyback at a discounted valuation, so pretty good in balance sheet terms what this means in capital allocation. it's understandable why the stock would be up, but it also seems to come with the tacit

approval of chinese authorities. probably more of a two-way market than it's been. that's not a very controversial proposition given that it's been straight down for a while now, but it does absolutely seem as if china does not want there to be this continued punitive tone about their companies and people who own capital in these companies. >> so basically, jpmorgan analysts marked the bottom when they called the stocks uninvestable, what, a week ago >> it's lining up that way >> like a tesla, tesla shares at the top of the s&p 500 today the company officially beginning deliveries at its giga factory in germany they expect the plant to eventually produce up to half a million cars a year. let's bring in jed dorshimer jed, with tesla up 8% right now, talk about the financial implications does it drag on profitability in the near term? how are you looking at the new gigafactory? >> yeah, thanks for having me. so let's just take a step back for a second i'm down here in houston at this power electronics conference, so

the guts that go into these teslas and i'm doing this interview on an iphone. when i focused on the cell phones, most pundits said never imagine i would be able to do what i'm doing today with you here on an iphone back in 2002 so i think the context of what tesla is doing is we have to look at it through the eyes of a manufacturing juggernaut, that we have not seen since henry ford with assembly lines changed and created the automotive industry that we know today. and so when we look at what is going to be coming online in a couple weeks, when we look at berlin, which is going to double their manufacturing, and we look at electrification as a bigger trend and the value that brings to the market, i can't help but think that these are all positives with respect to tesla. it also reduces the geopolitical risk that we're now seeing increase tensions from

russia/ukraine and china as well >> because they were using the shanghai factory and shipping cars from china to europe. now they can theoretically now just supply them, the european demand, from the european factories. what sort of opportunity does that represent >> well, two things. you're exactly right so first, over 50% of the cars that they're producing now are coming from shanghai so you're going to reduce the dependence on china as that central low cost hub for where you're shipping. two, imagine all the embodied energy that's attached to floating these cars on a ship all around the world and being able to regionalize with local manufacturing. and lastly, these are going to be cars that are moving to the 46/8 and a lot of people don't understand that. that's just the size of the battery, but it's really important because in our view, it creates an apple-esque type strategy here which opens up other markets, namely the

markets they haven't been doing much in, energy storage and battery backup we haven't seen much, but they said they have been supply constrained on the 21/70s, so this opens that market up for them we think that's going to be an area of growth to augment the automotive growth they're going to be more than doubling >> that's what i was going to ask about because all of the ev companies now are supply constrained, are they not? with the price of the materials that go into batteries spiking and a lot of them stuck in russia and ukraine elon musk has complained about this on twitter. where does tesla stand relative to other ev competitor whz it comes to dealing with these issues and potentially raising prices >> tesla's raised prices across the board. they're not going to be immune from the supply chain challenges i don't think any companies are going to be immune you're going to see that flow through. one thick tesla has done well is they have looked at a system design which other companies are starting to do, but tesla is way out in front of the pack so for example, using silicone

carbide for their converter to get more out of the electrons going into the battery which allows you to get to a smaller battery pack or reduce the amount of copper those are things that are going to become more important that's why i'm at this conference in houston listening to these semi-conductor companies talking about what the plans are going to be. i think near term, tesla is not going to be immune to the supply chain challenges we think that's going to create opportunities with the volatility to buy on pullbacks but i think when we look longer term, it's clear to us the trend towards electrification, which includes transportation as well as decentralized electrification on the generation for solar and battery backup, are clear winners in terms of a much larger trend >> so you're buying on the dips. tesla is still down about 6% for the year it's 20% off the highs but it is surging right now and had had a good month or so here. >> yeah, i mean, i think in this market, you know, we have a buy,

we have a $1200 price target but recognize it's like the pilot coming on on the flight saying there's going to be turbulence there's going to be a lot of choppiness our macro strategist has talked about that is has been proficient in calling a lot of these trends we do think that things are going to be bumpy, but we would be buyers on pullback because this is where the puck is going to be going. >> jed, thank you very much. >> thank you >> appreciate it on tesla which is up now almost 8%. >> financials among the leaders in today's rally as well as treasury yields continue to rise conventional wisdom says a yield curve inversion signals a recession, bank of america says investors should buy financial stocks now that the three-year, ten-year yield curve has inverted the firm says the traditional view no longer applies and a yield curve inversion does not necessarily signal trouble for the banks, with the sector outperforming 50% of the time during yield curve inversions, which does make you scratch jour head a little bit, mike.

what do you think of the call? >> the business model of banks is no longer what it used to be traditionally principally, which was taking short term deposits, lending out ten-years or borrowing very short, lending out ten years. the curves that matter more to bank earnings are on the shorter end. so those are still relatively steep. and also just the absolute level of short term yields matters a lot for the deposit heavy banks. that means as the fed hikes rates, it flows through. all those things are true, and i think that the curve is inverted in recent cycles when we kind of got late in a cycle but we had long cycles so it stays late for longer and i think that's one of the reasons banks have continued to be okay. and valuations got reset a little bit f you look at like a bank of america, it was basically at its high end of its range for valuation before these pullbacks, and you know, it obviously got more in the target zone for buyers. so it all makes sense to me.

as we remember, everybody piled in it was a stampede into banks and energy at the beginning of this year, and only energy has really given you a smooth ride. we'll see if investors are gun shy about rushing back into financials after that. >> it's a weird day because we're seeing these yields spike. the two-year, the ten-year, really across the board, even though we're seeing flattening, and equities are doing nicely. we're up 1% on the s&p, nasdaq up 2%. it makes financial conditions a little looser, which makes fed chair powell's job a littlesie i easier when it comes to tightening them. i wonder ultimately if it's the right trade, what's going on right now, given the fed chair is doubling and tripling down on this inflation fight >> it's not the cleanest read at all. and i think a lot of times what i would resort to in trying to figure out what's going on is, again, to go back to positioning

and where we started from. you go back a week, and there was absolutely rock bottom sentiment and risk positioning it's obviously gotten taken care of people chasing this rally. we have been talking about the late-day rallies every day that often means people feel underinvested, nld exposed to a stock market not letting them in that can't last for long maybe it's running its course now, but to me it helps explain why the big index stocks which are the big growth stocks are playing catch-up even as rates go up. >> tesla, apple, microsoft, amazon, google leading the qqqs higher what do you see in the internals? >> it's been positive but not overwhelmingly so. the s&p is lagging the equal weighted index 2.5-1 advancing versus declin declining. we talked about both tech and financials doing well. look at it on a month to date basis. software and financials both in positive territory so far for

march. and again, that's a very similar looking curve, and that hasn't been the case over the last year those groups had been more diverging than moving together the volatility index continues to cooperate it's down another half point, so down under 23. we were in the high 30s not that long ago, and that's a good, again, spike on the chart. in the next week or two probably for this to recede below 20 to really have a sense that the market is on firmer footing and is back in gear. >> as we head into the close, i'm watching nike which has given up some of its earlier gains. it's up 2.5% after what was considered a varstrong quarter from the company the s&p is up 1% what is working? consumer discretionary, tesla, communications services, financials, technology we hit all the tech and bank themes energy is the only sector lower right now. everybody else is higher the dow, best performer in the dow, or biggest point contributor would be boeing after the slide yesterday on the chinese plane crash. nike, salesforce, apple all adding to the dow gains as well

as jpmorgan and some of the banks there. the nasdaq the biggest winner of all three, adding about 2% here. the small caps also adding a percent or so. so that makes five gains of the last six sessions for the major averages building on last week's strongest rally since 2020 still down for the year. but a pretty strong day considering yields jumped. that does it for me on "closing bell." send it over to scott wapner on "overtime. >> all right, thanks so much welcome to "overtime." you just heard the bells we're just getting started here. in just a few moments, i'll speak live to carl icahn an "overtime" exclusive. we can't wait to get his views on the markets and find out where he is placing his biggest bets right now let's begin with our talk of the tape, with the tide truly turning in favor now of the bulls. let's welcome in our panel eric johnston of cantor fitzgerald, shanno