and now florida, guys. interesting move here, but still requiring it is pretty much a good idea given what we have with youngsters and money these days. >> a good experience. >> speaking from experience, yes. >> fact they could agree to that -- >> unanimous. >> yes all members of houses. >> thanks, dom. thanks for watching "power lunch," everybody. >> "closing bell" right now. stocks are down. yields are slumping, and oil jumping. most important hour of trading starts now. welcome to "closing bell," every. i'm sara eisen where things stand, s&p pulling back dow down nasdaq down 4% as well and small caps beaten up hard down 1.5%. down for the week. reversal from yesterday. top takeaways on today's big stories. general mimms seeing pricing power. great for investors, not so much

consumers company behind cheerios and belty crocker, outlook strong struggling and why more are eating al home and more importantly paying more for groceries. expect more price hikes on pantry items. gas prices spiking worry whether u.s. consumers can handle it or sink us into esession took a look. no importantly, we just outpassed gas prices over time especially with the latest wage bump record-high gas, outlays, how much we spend based on what we earn, aren't as high as in other cycling. and meme trades are back gamestop up another 15% on top of yesterday's 30% spike some say great healthy retail trader still engaged. or is it really? does it actually show painful agency the past months been in the market not painful enough to strike fear in investors that keep them away for a while

matt a technical analyst shows a high level of complacency. stocks pulling back after rapid rally we've sooner the past week. tony dwyer out with a note bouts of witness are opportunities to add exposure joining us along with richard bernstein. tony, start there. you have a new note. buying today's pullback? >> sara, back isn'tian remember sremember -- back in january, wow cautious since september talking about tumultuous rally look at what happened over the course of last year at the low, when s&p down 14%. nasdaq and russell down 20% almost back to end of 2020 to see those levels gave back all of the gains in the market, they've gone nowhere. when you put all of that into the background, still in a tumultuous market and i think still going to pull back

the thrust last week a historic precedent i can't ignore hard call, middle of a war, fed raising races, maybe 50 basis at a time costs crushing everybody and companies. get the thrusts like you got, make it specific s&p 500 found up more than 6.96% like in the four days ending last week. four-day rate of change. 6.95%. it was up 23% median gain a year later. 14 of the 16 occurrences up actually double digits. >> argues for more strength ahead. richard, i remember you've been warning for months now about a bubble even when things looked good now we have seen this sharp deterioration in the markets,d you think there's more room to go agree with tony? damage is done >> sara, i think what you said, sharp deterioration in the

market i think i still view the market as being more of a seesaw now. the market itself really hasn't done as much as people think, but because people have been on one side of the seesaw, their pain extreme if they'd been on the other side of the seesaw, i think actually pretty happy now things like energy, utilities, things like that probably pretty happy. i think dispersion is actually the bigger story than "the market" toe seso to speak and continues. >> add to those? energy, materials, today utilities as women as well? >> a longer-term story here. one of the big surprises could be that energy is actually a growth sector. the energy sector now is highest dividend yield of any sector classify as value investment most people don't understand that on a bottom-up projected

five-year growth basis, energy also ranks number one. for earnings growth. number one for dividend yield and secular groenings earth sounds like a long-term investment story to me. >> you, tony look at sector divergence and performance what looks best? go to the most beaten down parts of the market? namely, technology >> so the only way the market really rallies over the course of the next year like data supports actually have short end of the yield curve come down already discounted what the fed's going to do. already the rate move has significantly impacted lower end of the housing market from all accounts i can hear. when i talk to various analysts in the space, and eventually move up, up the food chain pap problem the fed has when they talk about the neutral rate, raising rates is that they don't take into account the price increases. after every recession, remember, they throw in an infinite amount of money at the market, goes

into invest that lifts prices of assets when you raise rates you're not raising rates against the same price. in other words, i can afford a house at, make up a number $100,000 at 3% i may even be able to afford it at 4%, but can i afford a $100,000 at 4% that ability deteriorates quickly because when they threw the money at us and made it so cheap lifted the asset prices to the only way to turn it over is to have a lower interest rate. to be able to afford that monthly number. >> 232 the yield on the ten year everything reversed from yesterday. sell offin bonds thank you both for joining us. stocks falling commodities jumping again. oil up more than 5% today. 50% now for the year nickel prices popping. first gain since march 7th when nickel hit an all-time hide

leading london metal exchange to halt trading join us now, cme group ceo in the center of all action. what has the volumes been like for all of these products that you have there commodities, rates oil prices in particular what does it look like from your vantage point? >> well, sara, i think you have been talking about this as many guests have over the last several weeks. prices all over the place. volumes associated with it ebbs and flows and spike of volumes going up and down depending where the market's going at any given time. geopolitical factors play into it talked a moment ago about the commodity market talk a second about wheat. a third of wheat production, world's production, out of two countries at war with each other. comes off the market this year, next year maybe year after, not suggesting it will, but if it does, where is the market going?

not just tacking about people shooting each other, catastrophic in itself or a financial collapse, talking hunger a big issue for us risk management associated with these products is critically important. >> what about liquidity? that been an issue >> people talked a lot ar liquidity. liquidity can be an issue in times of stress no matter market you're trading ibm stock or trading a wheat contract all depends what's going on. liquidity comes and goes as you know people don't stand in front of freight trains because it's fun. a lot of stress in the markets system so much uncertainty pip things we've never seen before. so many people trading in the markets that have never seen inflation. with inflation first time in 40-plus years. people have never seen a down tick in equity markets participating's people have not seen an on the ground boots on the ground european war. so how do they participate in that and return to reflect on liquidity associated with it it's not a surprise to me.

doing this a long time people pull back during unknown times we've seen. >> i don't know if you can hear. a birthday going on on the floor for one of the traders. >> i can hear the birthday is that yours? >> not for me. no mine's in august terry, what -- what about margin are you requiring traders put up more for trading futures in these commodities given all the action we're seeing? >> we don't put it up just because of, at will. that's really an important factor here. there are calculations that go into our risk proceed kahl ptocr years positive protect it. yes, to associate with it. cme a neutral party, facilitator at risk. no stake in the game margins going up and down. associated with risk of the product. >> because we've heard about this happening, and some potential pain out there

like having to raise more funding's do you expect commodity shops to blow up as a result of some of these crazy one-way price moves? >> well, sara, that's speculation at best on my part and i wouldn't go there. i have no idea all i know system i'm running here is highly capitalized sitting on $150 billion of flying cash sitting on a massive default fund foreyears here at cme group. managed risk appropriately our job and what we're trying to do people come and go saw it, never thought we'd see banks fail, but they did i don't know. >> mme, competitor a nickel -- crazy. they had to cancel trades, suspend -- can't seem to do anything right since they've started trading again all sorts of suspicions, could that happen at the cme >> sara, i'm cautious about

criticizing anybody else when you're in the same business. i'll say a couple things issues and not procedures and protocols we've had here in the united states many, many years perfect example. april 20, 2020, all saw price of west texas intermediate, $37.50. strike options were put in place for potentially if the market went negative. it did we managed the risk didn't bust trades breaking trades takes away from credibility of any central market whether on otc or a listed platform. a big concern for participants and didn't have any hard position limits like we do on our agriculture products and other products and didn't have technology like we have with stop logic and other functionalities associated with slowing down these markets so you don't have to go through what they did at lme and customers suffer for it.

>> make a play launch a nickel contract >> i can list one if i wanted. the question, do i want to already have copper. aluminum and other products to compete with lme today in a comfortable position from there. listen, i'm in this business, we're in 180 in this business and do things on a methodical way for clients to manage rick but not to take advantage of a nickel trade because they screwed up brutally honest, will i list a nickel trade not sure a host of products are critically important to health and well-being of the world. such as food, such as energy prices, mortgages. everything you talk about every single day talking about nickel because of a mistake made. >> sounds like at least something you're considering, terry. nor product going deeper into is crypto and bitcoin. launching next week i think mini

options for bitcoin and ether. >> yep. >> what are you seeing as far as demand for these products and participation and volumes given some of the sharp swings >> here i have a, probably a different version on this than most question is, with crypto products is it use of the product or value of the product? i think a lot of being disingenuous about this with themselves a lot of people made money on value of the products. i actually believe if this continues to be successful around use of it why i listed i want to list contracts i leave for use of the product, which people need to manage risk associated with it speculative nature of going from $8 to $61,000 is exciting and fun but not the use case of a product. we're going to continue to offer some of these crypto products to retail and larger ones to institutional contracts if they quantity to use those to have a diversified portfolio mix i'll

offer them. >> clearly see growing usefulness of it terry, thank you much. terry duffy. not nudge time everything moving in your world. after the break, stocks and bond yeelz moving in tandem again today. this time lower's which part of the market is a better value mike santoli breaking down the charts in today's it dashboard we'll be right back. our commitment to you is clear. save money. live better. offer everyday low prices, fresh groceries delivered to your door and prescriptions as low as $4. so you can live a little better each day.

♪ ♪ 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! become an agent of innovation with invesco qqq [sound of helicopter blades]

yeah... oh. don't worry i got it! 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. at xfinity, we live and work

in the same neighborhood as you. we're always working to keep you connected to what you love. and now, we're working to bring you the next generation of wifi. it's ultra-fast. faster than a gig. supersonic wifi. only from xfinity. it can power hundreds of devices with three times the bandwidth. so your growing wifi needs will be met. supersonic wifi only from us... xfinity.

s&p down a percent treasury yields pulling back after the ten year hit highest level yesterday since may 2019 241 the high mike santoli looking at the relationship between stocks and bonds at the dashboard and whether the whole valuation argument for stocks changed. >> probably ireroded a little. compares earnings yield to s&p divided by price against the ten-year yield lower means stocks are more expensive and less cheap here you have basically as expensive as they've been since the global financial crisis. up here, '09 low there's 2020 low back into equities at lower prices here you see the '90s.

chronically expensive. no rule says here the right number for this regime this is expensive, this is cheap. interesting, inflation the enemies in the '90s, deflation here we are back in inflation is the enemy regime and this isn't going to matter. >> and i feel like no alternative to put your money in stock because bonds yields so low and that's totally gone. higher yields. junk bond nields higher, credit bond yieldshigher. there is alternative. >> true. funny, when there is an easier obvious alternative people don't want it. find reasons why bonds are dangerous. yields going higher's feels intuitive, bonds have value to a portfolio now, because rebuilt yield. people don't want to see that. >> dividend yeends also.

>> well below treasury yields. right. >> thank you. still ahead, petco's ceo here. and later home builders selling. mortgage rates rise. we'll ask an analyst whether he's buying dips in that group we'll be right back.

i promise - as an independent advisor - to put the financial well-being of you and your family first. i promise to serve, not sell. i promise our relationship will be one of partnership and trust. i am a fiduciary, not just some of the time, but all of the time. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

welcome back to "closing bell." check out some of today's top search tickers on cnbc.com ten-year yield drawing interest ticking lower after a huge rally yesterday. at least a sell-off in bonds and yields jumped to 242 high yesterday back down to low 230s today. tesla two. holding gains after yesterday's jump on the giga factory from europe opening and gamestop, new share from chairman, excitement crude oil and apple.

everything else higher are consumers spending big bucks on pets? up next, ceo of petco. whether inflation is forcing shop toepers to cut down on the purchases. we'll be right back. "closing bell" in three. inner voice (furniture maker): i'm rubbing the arms of my chair... ...admiring the craft and detail i've put into it. that way i try to convince myself that i'm in control of the business side of my business. intuit quickbooks makes it easy for you to get a complete view of your business. so you can sit back and... ...relax.

should investors looking for inflation-proof stocks turn to the pet sector petco's krceo said today a year after returning. joining me now resilient to inflation and the economy. really that basic for people, spending on pets? >> history tells us. the great recession pet industry resilient through it once again we're seeing that there's a relatively timeless trend towards more premium products especially with millennials and gen z-ers adopts pets. upgrading even more. >> have to spend more on gas and food bills, we're all exper experiencing isn't that lower margin at extras, bells and whistles they were spending on >> some indiscretionary spend on tennis balls, toys like that

but premiumization of products going to fresh/frozen. a $4 billion category by 2025 is a counter veiling trend. >> better for pets buy fresh or frozen? >> my guy yummy lost ten pounds on just food for dogs, fish and sweet potatoes. >> what about inflation within the pet category itself? because sure a lot of inputs are rising like other food prices? >> we have taken price and we have been able to pass that through. we haven't seen a decline in unit volumes, but same time we want to make sure that for those customers that are looking for value we can provide values. own brand, wholehearted great for that and announced a product called vital care. a basically complete health and the consumers can save $200 to $300 from vital care. >> what about the stock? you went public after being private a while. private equity a lot of debt

back in early 2021 all the way up and then all the way back down. right around, offering price, what $18? >> $18. >> what are investors missing about this story >> focused on executing. had seven consecutive quarters of double dump it growth the top 50 retailers only 3 had seven consecutive quarters warren buffett eventually see intrinsic value. 85% of stocks down we're up from ipo price and up in year to date fiscal 2% and market is down in a down market i think we're performing pretty well. >> how much of the business is ecommerce? some of the competitors like chewy, for instance, grouped in with a lot of ecommerce, did so well during covid and now giving so much back on that full idea pulled forward >> yeah. doubled our ecommerce business 143% to year in q4 i talked about at this meeting a

leader in retail -- see targets, ultas leveraging footprint for in-store fulfillment bring services to bear like our grooming, training, vet, we really have the next generation offer in our view, if you look at us versus at pure play ecom, we fulfill 80% of orders via pet care centers faster to the customer and lower cost. >> more hybrid ron, thank you for coming by good to see you in-person off investor day ceo of petco. deputy governor of the national bank of ukraine urging more sanctions on russia the tougpushnth nimes he wants to see when "closing bell" comes right back. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [loud exhale] [ding]

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 contract prices around. [ding] get e*trade and start trading today.

(vo) everyone knows to get wireless savings, you need to be on a family pla- ...oh... [ding] get e*trade (jane) with visible, i get unlimited data for as low as $25 a month. no family needed. (vo) i guess i spoke too soon. visible. switch now and get 3 months of single-line wireless for $20 a month. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to

sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

ukraine calling for the world to be tougher on russia. just spoke to deputy governor of the national bank of ukraine central bank he told me sanctions from the west enormous but not enough urging western countries to freeze assets of all russian banks and asking s.w.i.f.t. to cut off the russian central bank maybe too soon to see the damage on ukraine's own economy, the war wreaking havoc, the new reality so far here, we were just, we would just suggest that the economic activity surrounded by approximately one-third compared with the pre-war levels >> a third of ukraine's economy, gone there's lots of concerns about commodities. ukraine often called the

breadbasket of europe. according to this, makes up 12.8% of exports wheat, 10% could the farmers have a normal and safe planting season listen to be what he said. >> major channel of agriculture products we are, ports now are blocked. we have only one channel to deliver our agriculture products to the north, that is the railway. how that europe, but the passage of this channel is much narrow compared with the ports. export 15% of the stuff which we used to export before the war.

>> so big news, actually said planting season could happen in ukraine but transmission, shipping methods blocked to make it hard to get exports out of the country. speaking to me from an undisclosed location in ukraine. says central bank is up and running even working out of bomb shelters or base monies to keep the financial system open and importantly keep money coming in to support their army and people. when we come back, apple making a move to disrupt the fintech space and home builders stocks taking a dive on new data those stories and more when we take you inside the "market zone." 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.

[sound of helicopter blades] 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.

dow down 400 points. 20 minutes left of tradings. in the "market zone. breaking down these crucial moments and pullback on apple's big splash in the fintech industry and stocks significantly underworming today. first up, stocks s pulling back a big rally yesterday. near session lows again. dow and s&p on track for worst days in more than two weeks. inflation remains a key concern. just this hour st. louis fed president jim bullard said indic all indications up in the spring and interest rates move faster."

fourth time he's spoken since the fed meeting. mike, i think we know his position wants bigger rate hikes and faster does it do anything to the market to have these calls repeated >> pounding the message home significantly also joined by some of this colleagues. not just jay powell. there's a general view out there that they are trying to get the market prepared for front loading a lot of highs, not counting on inflation to ease back on its own. mostly absorbed that bigger question, s&p up almost 10% coming into today and six trading days pulling back a percent, taking a breather bond yields ease lower, it makes sense in this context. question is, was it really just a big off sides positioning move where hedge fund completely blown out of all risk exposure, rebuild them or more market staying on a fundamental basis, saying it believes it can handle

what the fed has for it? >> nasdaq underperforming today. down more than 1%. most of tech not working today makes you wonder, inflationary fears? economic softness? is it rate hikes all confused as we've seen stocks rise with bond yields lately >> right no tidy relationship there kind of never was. now it's loosened up more. especially when you consider how much the overall nasdaq pulled back and how much the average nasdaq stock fell from highs wasn't all about little moves in interest rates making that call. to me much more about, a massive short covering rally short covering exactly how all sustainable rails start. not saying it's going to be fleeting, but makes sense the areas with greatest volatility on the way down are going to be twitchy going into a mode figuring if this is a lasting reverie. >> chips

intel heal of capitol hill urging congress to boost semiconductor chip manufacturing in the u.s listen. >> either invest in this industry now to see it rebuild or we're going to decline. today 12% from the u.s., half of that's intel precarious part of the reason for my urgency and passion on this topic right now. fear drops below 10% far we might never recover and have a permanent dependence on asia and other parts of the world geopolitically unstable for the long term. oil reserves defined geopolitics the last five decades. where the fabs are for a digital future is more important. >> and intel stock higher. lost steam here into the close after initially spiking. when nvidia's ceo would explore using intel as a possible manufacturer of its products joining us from that nasdaq. could be a change, right >> could be.

take it with a grain of salt a foundry like this takes years to come online not something happening overnight. you have nvidia's ceo saying considering it yes. could be good for competition later but no promises whatsoever even nvidia ceo compare intel to taiwan semiconductors saying calbert needs to be up there for this to go through tonight burn bridges a good complement towards intel and further ads to a chips argument and testimonies going on we need to think big picture just, i don't want to say fluff, just a conversation that we all seem to be talking about right now. a headline. >> yes no and i guess takes time to your point. what is the underlying factor driving the stocks now is it on the shortages as well or on cyclical concerns about the economy? >> a great question, because two angles you see a lot of people, analysts even executive i spoke

to now, oh, has to do with legacy notes 28 nam oh meter nodes in a lot of ev products and data. part 2023 oversupply the way the united states is going, failing on the leading edge these are the much, much smaller chips that unfortunately have an overreliance on taiwan at the moment so that's something we need to think about in the future and the ceo of intel spoke about it right before talking to me. >> thank you tonight a lot of people want intel to be good value play within semiconductors. has not made the move seen in amd or nvidia. is it there yet? >> in terms of statistical value, there there quite a long time. seems the market treats it as mostly not a market share gainer heavy investment no matter what happens. intel always a massive r & d

sp spender. difficult to see when the fruits will be realized overall, the group is digesting a huge trading technically. up to 200-day average, stopped and pulled back. up from being down from the peak 16%. up 150% often march low exactly two years ig today doesn't necessarily seem a neglected group yet. >> no. but a rough start to the year for sure. >>ier. >> yes. >> apple, credit kudos companies like experian and equifax. am's made significant moosh moves with apple pay, apple card plans to launch a tap to pay

feature on the iphone. for more how this could disrupt the intel space who is most worried about this move? >> square. right? tap to pay feature you mentioned. letting businesses load up software on iphone don't have to buy special hardware and boop your phones together and make your payments. a square killer right there. fintech acquisition, sara, interesting. this can link it to your bank account and credit kudos can get a better picture of your credit score. could be used by apple on the back send to do things like figure how much apple credit to g give you on the apple card buy an expensive apple, new macs that cost upwards of $3,000 and want a payment plan, figure what your monthly payments can be, something like to. more as a back end type thing for all of these apple pay

features's who knows what kind of financial products they want to use it for in the future. >> where and when should we look to the fintech part of apple as a revenue driver for the company? >> part of the services lumped together same area as at-store sales so on and so forth. lumped together in that. right now today apple pay only making fractions of a cent off of every apple pay transaction and then with the apple card, probably more lucrative getting a slice of every transaction on the apple card plus interest payments. >> dave, interesting thank you very much. group them together there. nasdaq down, mike, 11% for the year apple only down 3,.5%. solid outperformer. >> yeah. closer to its high than almost any of the other nasdaq stocks mostly about quality predictability, i think.

balance sheet. those effects, plus not a lot of fundamental erosion in the story. not that there has been for a microsoft either valuation adjustment has been very modest so far for apple thus far. >> noticing tesla with follow-through to big gains. apple and tesla holding things up adobe not great. nvidia, cisco, google, facebook. some stocks have more to prove nice run-up. >> massive strongest on record look at momentum of the nasdaq 100 move. again, today's spillback is pretty much not that surprising or severe. or worrisome, if you actually think we had recovery. doesn't want to build. s&p actually sitting a little below last week's high don't necessarily want to reexperience last week's trading range. put it that convey. >> adobe negative reaction to

earnings raising prices first time since 2017. watching commerce wells fargo out new note on ecom trends estimates the pandemic pulled forward four to five years of online shopping penetration. firm saying despite slow dmoun ecommerce after initial surge in 2020 shift to online shopping overall is likely to stick, mike still a small fraction of overall retail sales at 13%. i noted this one, because etsy, these names at top performers in the market lately or more regularly this year bottom performers of the market hard to figure after, you had a pull forward wells fargo says four, five years. where these stocks allow given a secular growth area of the economy? >> yeah. makes sense that during the pandemic period it was the players that didn't already have the massive scale that had most dramatic effect.

a shopify enabling everybody to immediately go ecommerce, omni channel, a huge ramp amazon already there and therefore didn't get a full share of incremental growth. now somewhat more normal times amazon consolidating advantage had a capital investment cycle in logistics through last year makes sense. i question what it ultimately means for the stock and in foreseeable. amazon shares a laggard over the last year and a half traded right between where the cloud software sector traded and retail sector traded not as if it's necessarily out of whack with components market seems to prefer to pay up on a higher valuation basis for the cloud and eventually the advertising line items for amazon as opposed to the kind of raw scale in retail. >> march into the close, note the move in financials worst part of the market sewed were strongest part yesterday. interestingly, mike, with think

catch-up move, pretty much flat for the year. >> yeah. >> energy the best performing. utilities and financials tied for second place flat performance does that make sense given how far yields have risen for financials to not be doing even better >> they have catch-up to do with yields basically there was a tight relationship has been for a long time yields did race ahead a little bit, but it does make sense they're actually performing right now exactly in tune with what treasury yields are doing remember, the big piypile-ons w bank stocks. banks the beneficiaries of that. rebuild constituency at this point because people got whip sawed in that move in january. >> down 52 points or so in the s&p. session low. home builder stocks falling hard today after data showed sales of

new homes fell in february second straight month of decline as nor gadge rates and house prices rise. and other bullish trends investors should focus on. evercore home builder analyst stephen kim. what is bullish? affordability is very difficult. both on rate side and pricing side we're starting to see the impact on sales. >> interesting a lot of misunderstandings about the release it came out. new home sales statistic something i would tell investors or viewers to completely ignore. first of all, data, first comes out has a revision factor, which is huge. effectively the government will tell you sales may have been down 6% like they say over year but also up 8% have to know that number when it first comes out is not reliable. say it's roughly after it, just say, interestingly, two things you really need to know. one, that builders are deliberately not selling homes

to customers yet because they want to get their homes further along in construction process before they sell them. and, two, taking longer for home builder to build homes put those two things together. what do you get? a sale number lower than it would ordinarily be, deliberately holding back sales by builders and taking longer, rising inventories people put one and one together and say goodness sales are down seems. inventories up that's bad it's actually not bad at all what it's telling you is that you had a shortage in the market that demand is far in excess of supply and that's the reason why the thing that matters the most is driving people crazy, home prices keep going up if you talk to home builders, everyone's worried about rates, very reasonable. but you've got to look at the fundamentals, what they're doing. facts on the ground, demand is far in excess of supply. been that way for the entirety

of the last two years. why people consistently underestimated the fundamental growth in home building. >> but -- the question, stephen, is whether there's going to be stagflation coming to this part of the economy the fact that prices keep rising higher, and demand will slow down, because of the general economy, because of inflation. everywhere in the economy and because of higher mortgage rates. you don't see that happening >> definitely i would say axiomatic. pricing, cost of housing rising, demands weakens. you can't see demand you see interseconds of demand with supply. best way to see that is to see the level of transactions and the price. price is the most important thing to look at i would tell you that what you are, what people are missing is that we have underbuilt the country for the last 15 years. it's the supply side which is dramatically different if you look in the market today, everything that you see is

actually consistent with an idea we have a supply constrained driven market. look what's happening with home prices just went through it inventories very, very scarce. builders cannot build homes fast enough, running record low levels of housing production for most of the last 10 to 15 years. we don't have enough homes for sale then look at rents rents have been rising very rapidly over the last couple years. you have not enough houses for sale and not enough apartments for rent what that's telling you, underbuilt the market chronically. that's the situation which is the most important thing when people are going to form a household, live somewhere. either rent an apartment or buy a home. >> quickly, top pick in the sector if you think beaten up too much >> these home builder, large cap home builders underleveraged and trading below liquidation value. simply value of the land owned

pre-pandemic or controlled pre-pandemic worth more than the stocks themselves. names i highlight. polity, large cap under live reeged and dr horton and toll brothers names very atrauctive here hon leftly not wrong with any larger cap home builders. >> stephen kim, thank you. evercore isi. alternate view on weaker haasing sales today. two minutes ago session lows seeing now dow down more than 400 points. home depot biggest drag. what do you see in internals >> less negative than indexes tell you yes, more declining and advancing vol yoom close. 45% up, 55% down not a washout. mixed internally big index stocks definitely taking a toll. a lot of talk he heading into quarter end, a big flow of pension reallocation money into bonds out of stocks because stocks have out performed by a

bit. one of the worst returns over a few months in bond history seriously, vanguard long-term compared to the s&p showing money to flow into bonds maybe happening today. as a matter of fact, because it does sometimes happen a week ahead of time. keep an eye on that. i don't know if it's a lasting feature what drives the markets. volatility index door a down 1.2% s&p 500 day down 1.8 on the russell 2000 vix barely up. half a point net positive high enough after the run to accommodate day-to-day bouncing, not a fear sell-off as seen in recent sessions. s&p session lows down 54 points. 1.2% lower weaker for the week. joining the dow. and financials biggest losers. down for the group yields lower today energy and ulttilities hiser on the day.

dow down almost 450 points nasdaq also down a little weaker than the rest of the markets so with the russell 2000 nasdaq down 1.3% there into the close. [ closing bell ] >> 7% off record highs for the s&p. that does it for me on "closing bell." have a great weekend, everyone send it to scott wapner into "overtime." welcome to "overtime." scott wapner just heard the bells of course here just getting started. in a moment joined at post nine i top strategist tom lee makes the case why stocks can still go higher talk of the tape today is the unthinkable possible? can stocks actually get back to new highs? don't look now even with today's fullback, not that we're that far away pullback a bit of a burst never know ask "the half" committee member and ceo josh brown with us good to see you here