since. that was back when energy had become just 3% of the overall market >> when you think about how bad things felt in february, january, february, and into march, it's amazing we get out of the quarter with a 3% decline on the dow >> couldn't agree more thanks for watching pal"power lunch. >> "closing bell" starts now >> stocks are near session lows and oil is sinking on this final day of the quarter the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen here's where we stand right now in the market, down 200 points on the dow biggest drag is home depot which is tracking for a 30% loss on the year so far. s&p down .4% nasdaq down .3%. the only groups working right now are the defensive groups we're talking utilities, staples, real estate, and health care, all positive everybody is lower wrg financials the hardest hit as yields take a step back. small caps give back less than the s&p, about .25%.

here's a look at the scorecard for the quarter which is the worst quarter since back in 2020 breaks a streak of seven up quarters for the s&p 500 lower across the board but the month of march was an anomaly higher, so ending on a str strong note. here's my top takeaways. look who's making new highs. dollar tree, tractor supply, costco, hershey, all at all-time highs. walmart and kroger are near 52-week highs. these are consumer plays that hold up better when economic slowdowns happen they're steady recession proof stocks, just like utilities and reits which are also breaking out. signaling investors are positioning for slower growth or even recession and on that note, a lot of worry about the bond warning as the wildly offed two-year/ten-year treasury curve is about to invert, a classic recession signal it doesn't necessarily mean you should bail on stocks. looking at the past four times this has happened, lpl financial found the s&p rallied another 17

months and gained 28% to the peak it was quite bullish for a while. america's job market is on fire. new data on unemployment claims, all confirming the strength. tomorrow is the biggy, the march jobs report. beyond the headlines, watch the labor force participation rate it has been lacking. not as many people coming back to work as we saw pre-pandemic that has contributed to a labor shortage for companies and is driving up prices and supply chains worse participation is key it could alleviate some of the pressure on inflation. let's get to our stop story. america's oil gambit, the white house announcing it will release 1 million barrels of oil per day from its strategic reserve in order to tame prices and inflation. oil and energy stocks are dropping today on the news but the sector is still far and away the best performer for the quarter, up 40%. earlier, president biden called out companies profiting from high energy prices listen >> companies have an obligation that goes beyond just their shareholders to their customers, their

communities, and their country no american company should take advantage of a pandemic or vladimir putin's actions to enrich themselves at the expense of american families >> joining us to discuss, roger reed, wells fargo senior analyst, and brian sullivan, cnbc senior national correspondent. brian, on the price prove, certainly the biden administration must be happy to see oil prices tanking today, but how substantial of a move is it 1 million barrels. i know it's historic and they're touting it that way, but when you look at the shortfall in the market, how much does this really help? >> well, it depends on how much russian oil stops coming to our shores i want to remind our viewers there are still 17 oil tankers filled with russian oil on their way here so we have not seen the last of that russian oil once that hits, the last ship is scheduled tew rive about mi mid- mid-april. they're clearly trying to make up for the loss there. here's the question, though.

the market needs to know and maybe roger knows this, i do not, the spr is technically able to unload about 4 million barrels a day, but the most it's done in the past 20 years is about 900,000 barrels a day. so we're going to use that million barrel a day release number because that's what they're saying, but there is no indication in the last 20 years that that kind of number is actually achievable. we could probably get close, we'll find out if we can actually get to a million. but it's not that much overall >> what do you think, roger? how much of a difference does it make for the direction of prices, beyond today, and for these companies? why is this not a band-aid solution because it doesn't do anything long term to offset the supply issue. >> right thanks i think you want to lack at it from the standpoint it's literally 1% of global production right? it's about 5% of u.s. consumption, so i don't want to

make it sound like it's nothing. but you just are going to the issue where we may be off a lot more than a million barrels. it helps but it's unlikely to solve the problem, but it doesn't do anything for the long term it doesn't change anything about production it doesn't change anything about consumption. and so in the end, it's a little bit of band-aid, and i think a little bit of hoping to get later in the year, let opec catch up, maybe iran comes back in the market, maybe the problems with russia and ukraine get solved i think it's an attempt. i don't know if it will be successful >> yeah, i mean, brian, there's also this issue of opec, which why aren't they helping out more why can't they ramp up production and spare capacity and try to deal with some of this price challenge >> well, if you believe the group, it's because many of their members simply don't have the ability to

under this declaration of cooperation, this deal they made about two years ago, they have to raise at a certain quota. if they all can't do it, then none of them can do it the all for one, one for all could we see a unilateral increase by saudis or uae, potentially, but they would have to get opec approval opec met today and rubber stamped the increase, and if you're opec, and you see that the u.s. is going to release a million more barrels a day, and you were thinking about releasing more barrels on the market, that decision was now made for you why would you do it when the u.s. government is saying we're going to go around you and do it ourselves? i will say this, roger's the analyst. half of the stocks out there in oil and gas were higher today, sara i think this is actually bullish. the president said, quote, we need more oil production that sounded pretty bull frsh the industry to me >> yeah, we're going to tax you, or yeah, fine you if you have these unused leases. roger, final word on what it

means for energy stocks which have done so well for investors. would you be adding exposure on top of the strong gains. i know you had a recent upgrade this week. >> we did upgrade one of the oil service companies, baker hughes. we think if you look at it from the standpoint of higher oil prices will translate to higher capx, if not in the u.s., certainly on a global scale, also with baker hughes, look at the lng opportunity that they're a major participant in, with the energy security issues picking up in europe, you know you're going to see more need for that. so we really like baker hughes here maybe we're moving a little deeper into the cycle as we thing about the names that are attractive as opposed to just trying to play a commodity price increase >> yeah, up 52%. >> very quick point, sara. >> really quickly. sure >> yeah. the number of permits approved by the federal government to

drill, they talk about those 9,000 permits. the number approved in january fell 85% from two years ago. so the oil and gas companies i think want to drill on these lands. and this tax you talked about is probably just the lease payments they already have. it's unclear at this point, but they already pay a fee to the federal government lease the land >> got it. also a way for biden politically to say you're just reaping the profits and dividends and for shareholders on the high oil prices we'll leave it there for now thank you very much. >> let's hit an under the radar mover today. check out shares of flex, previously known as flex tronnics it's a contract electronics designer and manufacturing and it's soaring 8%. reassuring guidance at the investor day analysts like it, raising forward estimates, citing bullish comments around auto said, health care, and cloud >> the cdc just lifted its travel warning for cruises and those stocks are jumping

we'll talk about what the easing of covid restrictions means for the rest of the travel space when we're joined by the ceo of booking holdings you're watching "closing bell" on cnbc. down 182 on the dow. [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.

♪ ♪ 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 what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create

(swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme.

more signs of a return to normal in the travel industry. the cdc today dropping its covid travel notice for cruise ships those stocks seeing a big boost. top of the s&p today separately, business travel is ticking up as well according to new data from s.a.p. concur. bookings holdings ceo glenn fogel joins us

bookings owns open table and more good to have you here. do you think the cdc lifting the warning on cruises makes a big difference were people paying attention to the warning? >> i think there's always help from any place where the restrictions are being lifted. that's always good for the travel industry. i wish that certain other restrictions would be lifted too. the idea that people have to have three tests before they come to the u.s., i think maybe it was good at a time, but it's no longer needed really wish the administration would drop that, too >> what would that do for international travel and where is international travel right now >> all depends on what part of the world you're talk about. certainly, we're also hopeful for a strong summer, and i think we still are very hopeful for it, different parts, though. asia not coming back nearly as fast as western europe is, which is something we have seen for quite a while. there's also of course the tragedy of the war in ukraine, which has definitely impacted eastern europe somewhat.

we do hope, of course, that will be resolved and we do hope peace comes and that gets our eastern european travel on track nothing we can do about that, though >> but you put out a release, in i think early march, saying that room rates were down about 10% from where they were in 2019 because of eastern europe. what else have you seen as a result of the war, and potential spillover especially on europe, the rest of europe >> yeah, so we did put out a public release we talked about that on a booker basis, the eastern european area was about a high single digit number for our total gross bookings so not that big a significant, but it's important certainly for us the first thing is safety for our people in ukraine, and our employees there, rights away the first thing we thought about, how can we help them, and we have been helping them the next thing we had to think about, how can we help we created a platform that

enables refugees to get a place to stay by getting our partner accommodations, the hotels and homes on our platform to provide free or greatly discounted rooms for refugees in eastern europe and a couple western european countries. we have over 1,600 partners already joined, offering up their properties for people who need a place to stay and we're getting thousands of refugees with a place to stay. >> good to hear. good to see those kinds of efforts. we have seen it also from airbnb and others in the travel industry what about domestic? we heard from all the airlines that demand is off the charts. spring break bookings are high, summer bookings are high, but prices are also going up have you seen any pushback from consumers domestically to higher prices or is demand super strong >> not yet whe when you have two years of people not traveling the way they want to travel and a lot of savings built up during that same time period, prices can be high and people say i don't care

i just want to travel. i want to go somewhere we have been very fortunate being in a spot where we have ininventory and people are buying it. one of the things i tell people is buy now if you're planning to take a summer trip. right now, prices are going up, as you say i don't think it's going to turn around at all. i really would recommend people, if you want to get the place that you want, a destination you want, don't wait book now >> what about covid? how do you think about it in the long term? as you mepntioned, you're seeing weakness in asia, shutdowns and cases rise cases ticking up a little bit here who knows what the winter holds as the virus stays with us how do you factor that into your long term forecast >> it is difficult, but i think we all have to recognize that covid is not going away, and we're just going to have to live with it. and certainly, there are going to be times when it's going to have a higher rate of infection, and people may be more cautious and they may travel less when there are high periods of inflation, just like when there's a flu -- flu is going

around, people are concerned about that i think it's okay to feel a little bit concerned, but take precautions. if you're really concerned, you can wear a mask. i don't think in the long run it's going to affect the desire to travel. people want to travel and they're going to >> what about you and bookings' own growth is the goal to get back to 2019 levels it seems like e-travel is a fairly mature business, fairly saturated business for those who use it how do you turn up -- what's your plan to turn up the growth notch beyond the 2019 levels >> yeah, i don't think it's that mature, actually i think a lot of people still do not buy travel in the digital sense. but even more sois we're comin through with new innovations that we think is really going to drive people to use our services, and we talk about this connected trip vision that i have which is, and i think we all know, it's still difficult to do travel takes a lot of time, it's confusing. it's annoying that you have to use different vendors. maybe you're using an airline for one, a hotel for another, a

car rental for another i believe this could all be integrated very tightly and be as convenient as all the other things we do electronically. look, we just put a little button on an app and get a car to come to us with uber. i want travel in general to be like that where it doesn't take hours and hours of frustration i want it so it's frictionless and seamless and if anything goes wrong, it can be fixed by one person you don't have to be on hold for so many different vendors at the same time. >> that does sound nice. glenn fogel, thank you for joining us good to see you. >> thank you very much >> a check on the markets. dow down about 200 points. that's where we have been siting for the last 15 minutes or so. home depot the biggest drag. s&p 500 is off by .5%. what's helping the s&p is staples and utilities. what's hurting are banks and consumer discretionary, comurmicatco communication services mike santoli is back and is go to look at a important shift in

investor sentiment check out uipath the street is focused on guidance, clininudg a weak outlook for the first quarter. we'll be right back.

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.

stocks tracking for their biggest quarterly decline in two years. but lately, we have seen a comeback s&p is believe it or not now trading less than 5% from its all-time highs mike is here to take a look at how recent market swings have affected investor sentiment for the dashboard. it hadgotten really ugly has it recovered >> absolutely, sara. we were at these very pessimistic extremes for investor sentiment based on almost all measures. if you look at the aaai bear versus bull ratio, it was at multiyear lows for bullishness therefore, multiyear highs for bearishness. the take-up was frame that is the market usually does not have

a further downside to go, at least not significant downside immediately when that's the case you can go back to instances, 2016, late 2018, where you saw similar declines in optimistic sentiment, and once it's gotten back to the flat line which is roughly where we are now, it has not meant the end of a rally things moderate, maybe they chop around a little bit, but usually once you have gotten that pessimistic, you can feed off that in the market it seems a net positive. it's no longer as much of a tailwind sentiment as it was a few weeks ago. what is interesting is the reason you have seen this ratio go up is because people are no longer saying that they're bearish, they're more saying they're neutral. it's the highest neutral rating we have seen in something like since the early 2020, which shows you that there's a lot of cross currents people don't know how to figure it out >> it's also hard to be bearish when you have seen such a strong and powerful upswing like we have seen in the month of march. nothing fixes sentiment like

price. mike, thank you. we'll see you in a bit >> shares of fertilizer maker cf industries soaring 40% since russia invaded ukraine more than a month ago on all of the supply chain disruption fears up next, the company's ceo on how the concerns could affect food costs around the world. we'll be right back. 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. this is the new world of work.

each day looks different than the last. but whatever work becomes, the servicenow platform will make it just, flow. whether it's finding new ways to help you serve your customers, orchestrating a safe return to the office... wait. an office? what's an office? ...or solving a workplace challenge that's yet to come. wherever the new world of work takes your business, the world works with servicenow. for investors who can navigate this landscape, wherever the new world of work leveraging gold,ess, a strategic and sustainable asset... the path is gilded with the potential for rich returns. ok, let's talk about those changes to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime.

it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪ the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

take a look at the fertilizer stocks. one of the hottest parts of the market just up there with energy. they have soared since the start of russia's invasion of ukraine. russia is the top world exporter of furtlerses such as ammonia and potash, and they recommended suspending the exports of fertilizers causing concerns about the world food supply. joining us is tony will, ceo and president of fertilizer manufacturing cf industries which is one of the best performing stocks of the year. tony, good to have you here. how bad is the global shortage of fertilizer right now? >> sara, great to be here. thanks for having me it is a huge problem the globe is very tight fertilizer it's a confluence of factors unprecedented demand coupled with a huge falloff in supply availability, only just exacerbated by the war in ukraine and what's going on with

exports coming out of russia and ukraine. so we are -- >> what are you doing about it how do you ramp up to help meet that demand? >> so nitrogen production is very much large refineries, chemical plants. we run those plants 24/7/365 there are very few incremental tons we can make we have pushed out some maintenance activity said. we have added some logistics capabilities, vessels and rail cars there's no new tons to make. it's just a matter of trying to get them as quickly as we can into the marketplace >> as i under, it takes natural gas to produce fertilizer, something you have access to, unlike some of your international competitors, pretty cheaply how much of an edge is that for you? >> so, being a north american producer is huge for us. we pay somewhere in the neighborhood of $5 to $6 for

mnbtu of natural gas europe is paying $35 to $38. and that's multiplied by 35 just to get to one ton of ammonia, multiplied by ten million tons which is what we produce annually that's a huge spread between low-cost production and high-cost, and it's one of the reasons fertilizer price is what it is. it's not only a lack of availability but the high cost producers are very high cost >> what is going to happen, tony, with global food supply? there are worries about shortages, about famines, and a real crisis. what's your perspective? >> so we are absolutely facing a problem of catastrophic proportion here. not only is the issue lack of availability and affordability of nutrients and inputs, but also russia and ukraine have historically exported about 30% of global wheat trade and 20% of global corn trade, and their stocks that are not getting on

the market because the black sea is closed and we do not expect ukraine to plant a normal crop next year due to damage of fuel depots, infrastructure, farm equipment, and dislocation of people so take a very tight food situation and just multiply it ten-fold by a lack of production coming out of the world. this is a problem of epic proportion >> do you have any solutions is there anything government can do we saw them make a move, for instance, to try to lower oil prices and gas prices today, releasing the strategic petroleum reserve. what can be done with this issue? >> well, we need to bring about a peaceful cease-fire as quickly as possible and try to get farmers back into the fields in ukraine. and make that growing region productive additionally, we're doing all that we can not only in terms of logistics assets here domestically, but in close contact with a number of our customers in latin america and we're going to begin exporting

on a humanitarian basis just to get nutrients down there in a region that's very rich growing area but also starved for nutrients right now. i think that is really what we need to do, which is point tons that are available in the regions that are most in need of them >> tony will, thank you for joining us of cf industries >> thank you >> raising some real alarm there. >> here's where we stand in the markets. we have taken a leg lower on all of the major averages. s&p down .75%. so is the nasdaq dow down about 306 points. we're looking at session lows. if you look at the weakness in tech, it's amd, microsoft, apple, amazon, facebook giving back some of the recent gains in the month of march i just spoke with the kohl's ceo about the battle for the retailer's board and the multiple takeover offers on the table. news there today a new shareholder letter from kohl's we'll share the details when we come back.

sales are down from last quarter, but we're hoping things will pick up by q3. 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.

losses really picking up steam in the final hour of trade. the dow is down about 311 points s&p now down a solid .75%. financials are the biggest drag on the s&p or at least the worst performing sector. communication serves, consumer discretionary at the bottom. utilities and staples holding up a little better. as for the dow, the biggest drag, home depot, jpmorgan, and nike biggest outperformers, amgen and

visa what is wall street buzzing about today? kohl's again the retailer send agletter to shareholders today pushing back on activist investor mckellen's campaign to elect new members the board. in the letter, they said the criticisms of the retailer are ill-informed and it's pushing for the sale of kol's at any price. earlier this month, kohl's confirmed it had received multiple preliminary offers from parties interested in buying the company. i spoke with the ceo of kohl's about all of this. my big takeaway, the company is really serious about exploring these buy-out offers there was skepticism whether kohl's was really exploring a sale or going through the motion, but the process i'm told is rigorous and moving along it's now at the stage with the bidding parties have been asked to improve their overall bids. i'm told the bidders do have access to manager and data from the company. the financial committee of the board, which does have one of mikellm's own nominees on it

from its last night is doing the work, comparing deals with the strategy already in place at kohl's as for who's in the running, one of the names that had put in a bid was starboard backed acacia. i spoke with their ceo jeff smith about it here's what he said. >> kohl's is an underappreciated business that has terrific cash flow and it's a company that we really would love to own >> no word on timing of this overall process. shares of kohl's are lower by about 1.5%, and we should note they have not yet responded to cnbc's request for comment on this new shareholder letter today. >> up next, amd sinking on a downgrade, taking the chip sector with it, and walgreens falling despite posting an earnings beat. those stories and the final moments of the first quarter of the year when we take you straight inside the market zone. (mom) delightful. (vo) with no trade-in required. plus, 1,000 dollars to help you switch! (dad) nice savings! (vo) yeah it is! verizon is going ultra, so you can get more.

when it comes to cybersecurity, the biggest threats 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.

this is the new world of work. each day looks different than the last. but whatever work becomes, the servicenow platform will make it just, flow. whether it's finding new ways to help you serve your customers, orchestrating a safe return to the office... wait. an office? what's an office? ...or solving a workplace challenge that's yet to come. wherever the new world of work takes your business, the world works with servicenow. [sound of helicopter blades] wherever the new world of worugh... 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.

down 337 right now on the dow, we are now in the "closing bell" market zone. welcome, everyone. mike santoli here to break down the crucial moments of the trading day, plus, ruchir sharma, and shannon saccocia on the sell-sell-off we have been losing steam throughout the final hour of trading. major averages higher for the month of march but on track for their worst quarter in about two years. mike, a spill into the close, coming off an extraordinary run of march how does that set us up for april, which is historically a pretty positive month for stocks >> yeah, sara. usually is positive on balance,

although once you have had a down quarter in the first quarter, it isn't necessarily the greatest setup for the remainder of the year. what we're doing today is cooling off after that very, very hot rally into tuesday. also, undoing that tuesday rally, which honestly seemed a little bit of a chase on some of the flimsier de-escalation headlines in ukraine right back to the levels we were talking about for a long time, the february highs in the s&p 500. the other feature of it right now, i don't think the overall index is in a real dangerous spot right here. you have a cushion underneath it we had this nice rally it seems like there's some buffer there, but it is a defensive leadership story utilities doing well health care leading. banks very conspicuously weak. i think you have to worry if those are telling you something about the macro picture as opposed to just rotation >> well, and as i said earlier, the highs are in the consumer staple stocks. costco, at an all-time high, dollar general at an all-time high a lot also depends on what

happens with bonds we have been seeing a bid for bonds, but that's opposite of what we have seen all quarter. this is one of the worst quarters for treasuries in recent memory. if we continue to see rates march higher as the fed is adjusting to this very high inflationary world, what does that mean for stocks >> you know, i don't know where the pain point is on absolute level of yields. i think we have front loaded an awful lot of angst about the flattening and potential inversion of the yield curve and what it means for the recessionary call at this point. at this point, i do think it's interesting that you have seen a little bit of this bid it could be quarter end rebalancing, but stocks have now still outperformed bonds on a year to date basis there might still be more to come in this rally, but what you don't want to see if you're an equity investor is the ideas that rates are crescreaming higr only because of inflationary ideas getting entrenched >> i want to hit movers. amd, there worst performer in

the s&p right now after barclays down graded the chip maker from overweight to equal weight, slashed the price target to $113, which is a $33 reduction they believe the growth story needs a pause and warns of cyclical risks in the pc and gaming markets kristina partsinevelos joins us now. kristina, buzz wall street agree with barclay's position on amd i'm going to say jim cramer probably does not agree with the amd call what about everyone else >> i'm not going to talk about jim cramer, but already there was another note that came out from rosenblatt, just targeting barclays so of course, we know this sentiment is echoed across the board. taiwan semi-conductors on wednesday said they believe pc sales will start to slow down. you had analysts at morgan stanley downgrade pc makers hp and dell just today. so yes, the sentiment is shared, but the big question is why isn't intel and arm also included in this prediction from barclays given they also have exposure in the pc market?

and so rosenblatt today targeted the barclays note saying this is a buying opportunity amd is a data center play. and small little swings in the pc market really will be offset by an upgrade in or i should say an increase in market share for data centers they're keeping their price target at $200 versus barclay's $115 >> the chips have been under pressure this year as the nasdaq has been under pressure, as rates have moved higher has anything fundamentally changed with the companies as far as what you're hearing and what you're seeing and whether they're seeing strength still in the demand market >> yeah, it depends on which side of the board you are. on intel, you can say they're slowly turning around, launching all kinds of new products. a gaming chip that's coming out and is going to be incredibly fast everybody's launch really focused on the data center so i think that's going to be a big shift in the market going forward. who's going to be best

positioned for that going forward? that's the big question. not one i can answer just yet. but i think that's the focus going forward for alot of thes companies, hence why that note focused on amd and its position with data centers. >> well, certainly having an impact today amd lower, at the bottom of the qqqs along with microsoft and apple. >> walgreens also a big loser today. the drugstore chain beating wall street earnings estimates thanks to straong demand for covid vaccines and rapid tests bertha coombs joins us now disapp disappointment how much of a tailwind was covid for walgreens and what happens next. >> >> it's a tailwind for all drugstores for walgreens, they did nearly 12 million vaccinations during the quarter, more than 6.5 million tests. they say they're actually starting to see people come back in now we'll see what happens with this new omicron vairiant. they weren't expecting to see that kind of demand in the quarter originally, but then we

had the spike. the other thing that's happening is they are reinvesting a lot, particularly in the second half, in expanding their new fulfillment centers and also expanding their co-located village md stores. so that is going to be a headwind frurnings but in the same way that amazon years ago would do that and reinvest and build capacity for the future, that's what they're trying to tell investors they are doing. it's going to pay off longer term >> walgreens down about 13.5% year to date it's also still down over the last year. i know you have been talking to ross brewer, the ceo, fairly newish ceo what is her strategy for getting walgreens back up? it should be doing better in this environment where costco and kroger and all these sort of safer staple stocks are doing well . it's really about pivoting more towards health walgreens health is going to be the big driver so that is includes the village md clinics, primarily care so

people don't just come in for an occasional urgent care thing they come in, they have a relationship with the doctors. and then they can go next door to the pharmacist. they're doing all of that fulfillment by robots off site, so the pharmacists have more time to spend with patients. so that's what they're trying to build in, essentially being this kind of corner health system where they can be your health team and work with hospitals for when people get discharged from hospitals, so it's a longer term shift to really, really digging in to health care and not just retail >> like cvs, its competitor. bertha, thank you. >> i want to hit chinese tech stocks sinking again today after the s.e.c. added search engine giant baidu to a growing list of chinese firms that could get kicked off american stock exchanges unless they update their auditing practices it's been a weak week.

the k web etf down more than 20% since the start of january with us, ruchir sharma, focuses on emerging markets. chinese stocks are among the world's worst performers during the first quarter of the year, despite the fact china has been in there, trying to ease policy. what is the growth story right now? >> exactly i think what you're pointing to suggests to me this may bemean e authorities, they try to boost the economy through liquidity measures and you just don't get the bang for the buck anymore. that's a risk i see in china and you spoke about the tech sector and the delisting issues there, but there are much greater issues in the property sector a story i think which had not been sufficiently paid taattento to out there is many property companies china are not able to report their results even. so the deadline for reporting

these results on the hong kong stock exchange was today, and we don't have clarity how money reported, how many asked for a postponement, even though the authorities have been relaxing some of the requirements such as not having the companies audited. i think there's a lot of systemic risk in china in the property sector. it's 25% of the chinese economy and chinese growth, and what's happening that is an even bigger story than the tech headlines that we normally see in the u.s. >> and that's not even to mention the rolling lockdowns that we're seeing because of covid. the problem for american investors and some of these etfs, the china names, is this quarter has been marked by, sure, they're uninvestable we have heard it from jpmorgan and others, because can't see what china is doing on its policy front can't see what's happening in the economy. it's slowing down. and then one day, bam, china steps and in decides to fix it, and the stocks look like screaming bargains so how do you know as an

investor what to do here >> rather than focusing on the regulatory issues, we have to focus on the economic story. yeah, where y have been in the camp which has been underweight china. there's a broader story in emerging markets it's interesting to see the performance this quarter we spoke about the chinese market underperforming but it's still quite interesting 7 out of 10 emerging markets are in fact outperforming the u.s. market this quarter i find - >> latin america >> yeah, exactly i find this divergence to be really telling from indonesia to brazil, you have these other countries which have been able to outperform even the united states, which has been relatively resilient even though it's been a down quarter. even in the face of the chinese market sort of being on its back i think this divergence is what i think is going to be the enduring story for the coming year if not this decade. >> a lot of it, i would think, has to do with a lot of them are commodity producers and we have seen commodities have a great

run this quarter my question is, do you continue to stick to that strategy? >> i think this is just a start of a cycle these countries have done very poorly over the last decade. so the growth prospects of brazil or even indonesia, all these countries that have been massively downgraded as far as growth prospects are concerned i think we're just about at the start of a new cycle shifts are taking place, and this coming decade is likely to belong to some of these middle and small bonds, rather than the big ones i think the big shift is just about y was speaking to an analyst in south africa, and she was telling me back in south africa in the areas which are very heavy in mining, there's a big boost taking place to consumer demand in those spaces. so i think this is a feedthrough effect which is what happened in the long period of time and is likely to last for a while >> thank you

losses accelerating again. we're down morethan 400 points on the dow 401. under pressure on the final day of the quarter which is looking like lanugly one first quarterly loss for the s&p since 2020 let's bring in shannon saccocia. shannon manages $19.6 billion in assets under management. what are you doing as we go into the second quarter, shannon? it's been confusing signals. >> well, i think mike made a great comment about the catalyst for this run in equities over the last couple weeks. we certainly have seen institutional money put to work. we have seen rebalancing i think the weakness in financials today is most telling because if we think about what's happening, we're starting to see or hear some stories about credit risk. we're starting to understand that there might be implications that go well beyond with this flat or inverted in some places yield curve. it's not all about recession

it's about what is the stress that is going to be put on some of these asset classes where investors have frankly been going to hide out based on low yields in the investment grade space. so i think there's a lot of things we need to be looking at over the course of the next few weeks. we had some nice earnings reports over the last two weeks that have given us some faith that we're seeing the chinese consumer coming back we're seeing consumer sentiment in general from some of these companies be very positive can that continue? we're going to get the financials right away, get that quick hit. last quarter didn't start out so well we had a big miss for jpm, for instance, coming into the quarter. i think we're going to enter into a period where we're looking at outlooks, thinking about what is the impact of some of the credit risk, and does that potentially put the fed at a slower pace despite these inflation numbers? i think that's going to be a much bigger story for us going into the second quarter. >> but one thing we know, shannon, is that we're entering

this period in a different liquidity environment than we have had over the past few years. and that economic growth is slowing down we don't know how much, but we know that's happening as fiscal stimulus wears off, as the fed is hiking rates, as we are dealing with inflation we haven't seen in decades. and we have seen what kind of bumpiness that can mean for portfolios my question is, has anything changed in that outlook that wouldmake you do anything differently in the coming months >> well, i think everybody needs to acknowledge the fact that we are obviously going to be moving into a slower economic environment. if you think about what has happened over the last decade when we have been in periods of slower gdp growth, whether it's globally or here in the united states, you're looking for growth in other parts of your portfolio. we talk about the tech stocks that have been under pressure, and going back to free cash flow, consistent earnings growth, valuations, there's a lot of technology or growth

adjacent companies across sectors that are going to benefit in a lower growth environment. you need to get earnings growth from somewhere it's not going to be a secular tailwind like fiscal spend and monetary policy looseness, then you have to look for growth elsewhere. i think we're going to see some real nuanced trading over the course of the next three months or so as people look for that growth against this more challenging economic backdrop. >> and you like health care still? is that still one of your favorite sectors >> absolutely. so if you talk about secular headwinds and tailwinds, there's a huge secular tailwind for health care. we're continuing to see people taking health care in their hands. we're continuing to see the importance of technology getting out into rural areas, being able to leverage the network that we have in order to deliver health care to an increasing population globally and we think that there's a lot of opportunity there to, again, get really strong free cash flow, dividends, consistent sustainable growth in the health care space it's not just a defensive sector

anymore. >> well, as we go into the close, every sector now is lower in the s&p 500 the dow hitting new session lows, down 487 right now shannon saccocia, thank you very much for joining us. mike, zee just about two minutes to go in the trading day sell-off picks up steam. what are you seeing in the internals right now? >> yeah, they have eroded fairly quickly, sara. along with the rest of the market clearly, quarter end there was a big sell in balance on the market on close orders. it seems like there's some programmatic shifting out of the indexes and that's taking a toll on the volume splits three to one negative to positive volume right now. on a quarter to date, year to date basis, it's been the lower volatility parts of the s&p 500 that have now outperformed the more aggressive ones not by much, but you can see it's a smoother ride for outperformance of the splv, the low volatility etf the volatility index has popped back up above 20 we still have a nice spike, well above into the mid-30s, but

clearly ahead of a jobs number and with a little turbulence and the s&p going back down to the range that's been in place since the end of january, you're seeing a little more unease filter into the market toward the close. >> vix at 21 a little over 21 as mike said thank you, as we go into the close, session lows on the dow down 488 right now just to recap where we are, this is the end of the first quarter, and it has been a bruising one for investors. the s&p down about, oh, 5% or so for the quarter. nasdaq down 9% for the quarter there's the look right now at the dow. if you want to know what's weighing on the dow, home depot is the biggest drag right now, as well as walgreens, intel, jpmorgan, nike, they're all underperforming today. apple as well. the only one that's contributing to the dow right now is caterpillar, as we see the sell-off pick up steam wib the s&p 500 right now, the safer plays are doing better that's been a theme lately utilities are green. for the year, for the quarter, the only positive sectors are

utilities and energy we know the story with energy, up 38% year to date. and for the quarter. technology among the worst performing sectors communication services is the worst performing sector of the quarter. and you can thank netflix and you can thank facebook or meta, both down more than 30%. that's going to do it for me on "closing bell. is have a good evening i'll send it to scott wapner in "overtime. >> all right, sara, thanks welcome to "overtime." you just heard the bells we're just getting started, of course let's get right to our talk of the tape that is the way we ended, the strong sell-off to end what will still go down as the first positive month of the year for stocks the question is what this means if anything for where we go in this new month of april. let's ask sofi's head of investment strategy, liz young, plut cnbc contributor stephanie link and chris sen yeah, chief investment strategist at wolf.