goldman look like this summer? you'll start june 6th. investment banking, sales and trading, asset management, you name it. but here's the important thing look at this many operations and fully in-person like last year that's something to watch, guys. >> that's the goal >> thanks very much. and thank you for watching "power lunch." >> "closing bell" starts right now. >> stocks are lower at this hour with the nasdaq feeling the brunt of the pain, down around 2% the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen plenty of red on the screen for the nasdaq 100 this hour look at some of the biggest losers in the index. moderna, lam research, marvell technology, kla corp, data dog a combination of a lot of different tech sectors chips and software getting hit particularly hard. we're giving back all of yesterday's gains and then some. we are near session slows as we speak. here are my top takeaways on some stories

u.s. coal prices topping $100 a ton for the first time in 13 years. look at peabody energy stocks springing back to life russia supplies 18% of the world's coal exports it's a big problem for electricity costs and a step closer to europe banning russian oil and gas. >> a big jump in treasury yields one of the catalysts, lael brainard, who is usually dovish, talking hawkishly about shrinking the balance sheet as soon as the may meeting and shrinking it rapidly it shows there are no doves left at the fed the fed is going to move aggressively not just on interest rates but on the balance sheet too and the market may be underpricing the risk >> and carnival and the cruise stocks rising despite weakness in over consumer names why? last night, carnival said it had the highest booking week in history. hard to get too depressed about a recession when hearing from travel companies

booking holdings last week told us they hadn't seen any consumer pushback to higher prices and demand is off the charts a big disconnect from what we're seeing in the market which is pricing in an economic slowdown. earnings commentary coming up will be key. let's get to our top story this hour while tech takes a big leg lower, twirltter is getting another pop today. the company is adding yelon mus to its board of directors after he took a 9.2% stake in the company. he joins jack dorsey, salesforce co-ceo brett taylor. joining us, jeffrey sonnenfeld, and steve kovac. it's good to have you both here. jeff, i think the question of the day is, as a board member, he's one of 12, he is the most vocal. he is the most active on twitter. what kind of power does he have to make changes to the platform and to the company >> you know, he adds a lot to the party here of course, there are three big concerns the one you raised is the

biggest one, but many people inside the company are worried about what the content character is going to be, and of course, there's an upside here on product quality. the first one, on governance, this is a spectacular board, a board that knows how to work with entrepreneurs a board where they may have hoped for more reinvention of the company. he'll bring that, but they have the financial heavies there, the ceo is very promising. he's pretty new on the job they have the best chief financial officer, one of the best in the industry, for sure with ned siegel. i think it's very encouraging. just a lot of founders don't play nicely with others. so freud said society has changed by its discontents this is a guy who is never happy with the status quo. >> jack dorsey had just tweeted he's been trying to get him on the board for a long time. steve, one thing he brings to the table that the other board members do not is 80 million twitter followers. he's always out there putting out polls like should twitter

have an edit button. how is thas going to work? >> there's this running joke when you look at twitter board members that they don't use twitter. for years, everyone would look up and they would have like two tweets on their profile. we know elon is not like that. and just the company is telling me today, sara, they're finally talking, by the way, and they're kind of tamping down these expectations that there's going to be like a systemic change within the free speech principles at twitter and so on and so forth they're really downplaying his role, that the board is there for an advisory thing. that includes musk, and that again, the management are really handling the day-to-day decisions at twitter they're kind of toeing the line saying, hey, we still value impartiality we're still a neutral platform and we're going to keep up with the principles despite the criticism to the contrary they have been getting. >> that relationship is going to be interesting between ceo and new board member elon musk who

has tweeted a meme of the ceo as stalin before. what do we need to know about elon musk, jeff? what are your thoughts of him as a ceo? i don't think he's been on a lot of boards besides tesla. he's on endeavor hasn't made a lot of noise there. >> not made a lot of noise there. and he has -- yeah, he's not served on a lot of boards. surprisingly, he's not on the board of the boring company. i guess he would make it a lot less boring were he on that board. surprising, but he's so scattered across so many other interests, he doesn't have the time, and also as steve points out, he spends an awful lot of time tweeting. so he's got 3,000 tweets a year, and his following at 80 million is maybe perhaps half of that of barack obama but he's only got taylor swift and welme him in a

guarded way on this board. >> stock is up 30% quickly, steesk, investors have high hopes for him as part of this company it had been lagging competitors like snap. what needs to get done to turn

around the stock story and the narrative for advertisers? they haven't been able to grow users. >> there's a lot of things to unpack this is a criticism of twitter for the last ten years or so if you open up your phone and look at twitter today, it looks largely like it did five to ten years ago. that being said, over the last year or so, they really ramped up product development things like spaces which is that live audio format. they're adding a subscription service. this is all with the goal of doubling revenue within the next couple years they have already stated this is their goal this is before jack dorsey left. it's really going to have to ramp up this product release cycle even more than they already have to reach those goals. and then i guess lean on elon's advice for how to do that. >> advisory role that's what th board members. taking it to a new level here, perhaps. jeffrey and steve, thank you both forght now. up next, energy secretary

jennifer granholm joins us for a first on cnbc interview to talk about rising oil and gas prices and the administration's new effort to bring clean energy to schools. just announced this week you're watching krb"closing bel" on cnbc. (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love. so you can live your life. that's life well planned. [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

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get ready for next level entertainment. apple tv+ is now on xfinity. howdy y'all. with new apple original series and movies added every month... ...there's always something new to discover. and right now, you can get 3 months of apple tv+ free when you sign up. just say “try apple tv+” to get started. it's a movement. with xfinity, it's a way better way to watch. wree at session lows down 220 on the dow let's look at today's stlealth mover, carvana falling after rbc downgraded the stock to sector perform from outperform slashed its price target, citing slowing sales growth rbc also mentioning rising interest rates and inflation as factors that typically work

against the used car market. carvana shares down nearly 50% on the year. >> speaking of vehicles, electric school buses could be coming to your neighborhood. part of a new federal action plan aimed to update school infrastructure using funds from the bipartisan infrastructure law and american rescue plan. the department of energy is launching a $500 million grant to improve school hvac systems and help improve school buses. joining me, u.s. energy secretary jennifer granholm. >> thanks for having me on >> my biggest question on this is how those funds, the $500 million, will be used and allocated. there's obviously such great need here when it comes to updating public school classrooms, making them healthier and cleaner. how do you decide where it goes and how it gets dispersed? >> $500 million, as you mentioned, comes from the bipartisan infrastructure law, and the first step is to put out a request for information to get feedback from superintendents

around the country about what they would do if they -- what they would prioritize if they had to upgrade their schools we want to prioritize, of course, schools that haven't already been updated, but particularly, because schools right now spend the second biggest part of their expenditures is on their utility bills. after salaries so we want to bring that down. if just replacing the hvac or lighting can save up to 30% in that utility bill, and of course, that money ends up going into the classroom, so we're really interested in bringing down costs and having the biggest bang for your buck where it can have the biggest impact, and we would like to see superintendents tell us whether they would be interested in renewable energy installations as well. >> is there a private sector component here as well, where you hire companies to make electric vehicles? >> the bus component is a different piece, actually a $5

billion component which will be administered through the department of transportation clearly, because kids travel particularly in rural areas travel long distance in buses, the windows are open, they're breathing diesel fumes, we want to reduce the cost of transportation, which electric buses do over the life of the vehicle, and make the air safer and healthier. the bottom line is the administration wants to actually leverage the private sector, so for example, the energy savings performance contracts that can be part of a superintendent's plan with a district to bring down those energy costs is very welcome thing that we would love to see >> have to ask you about the latest on oil and gas and the war, obviously we're seeing more images of the horrible atrocities coming out of ukraine what do you think, secretary granholm, it's going to take to get the europeans to sanction russian oil and gas? are they waiting for a chemical attack >> well, it certainly looks like

they're having all of these discussions that are heading in that direction i mean, you know this attack in bucha was, i want to say it really flipped a page about the horror of what putin is up to, and i think that it is causing our european allies to really reconsider what they are doing and where they are getting their fuel from. of course, we're in a privileged position in the united states because we are not importing now any russian oil or gas and so we understand that the first priority is to keep your people warm in the winter and make sure that they have fuel. but the conversations that we're having about diversifying and moving in new directions, about energy efficiency, heat pumps, et cetera, particularly for those companies that are reliant like germany on natural gas, are very encouraging but we have to make sure that we are also doing what we can to help our allies. that's why the united states has

been a recent supplier of liquefied gas. all of those conversations are happening now. >> i wanted to ask about that. we're going to supply them with 15 bcm, but there are estimates russia supplies them with 160. that's obviously a huge gap. how does that get made up? where does the extra supply come from >> yeah, so part of it is this notion of demand reduction through efficiency strategy. part of it is there are other suppliers, including norway, for example, qatar, for example. we are actually exporting every molecule of natural gas that can be liquefied where there's a terminal to liquefy it we're amping up. we just granted two additional permits. there are two separate facilities coming online by the end of next year which will increase our exports to 3 million bcf per day, so that's a significant help but those strategies are all happening in parallel. and the european union is really

front and center at making sure that particularly efforts with respect to demand reduction through efficiency is at the front of their strategy. >> what about, you mentioned that these images that we have gotten out of ukraine are sort of a new level of terrible that we're witnessing what about secondary sanctions is that something you're looking at, putting sanctions on indian or chinese companies that are still buying oil from russia >> yeah, i mean, i think the administration is looking at all sorts of strategies. and i'm not going speak for them about what the next level of sanctions are. but i do think, i mean, you heard the president speaking about putin should be tried for war crimes, et cetera. there's just this sense that this is so beyond the pale, and especially if there are additional atrocities similar to what we have seen in bucha that are about to be revealed sowe want to send -- and this

is why the european allies have been so united we have all been so united in saying enough is enough. i mean, i just, for example, just as one example, i just chaired the energy -- excuse me, the international energy agency's ministerial, and we will be -- they will be going back for another collective action of releasing oil supplies because they just do not want to be in a position of using any russian oil whatsoever and we have to replace those russian barrels that have been taken off the market >> so we're also doing a big spr release, which you announced last week. a million a day. you know, 180 million for the next six months, i believe oil prices came down on that news they're back above $101. was it enough ofan impact that you were going for in terms of the price action >> let me just be clear what we're going for. we're going for stabilization. we know because of those millions of barrels that have

been taken off the market, we need to ramp up supply so to replace those. and so our oil and gas companies and energy information agency has projected that we will see an additional ramp-up in oil and gas supply to the tune of a million barrels per day by the end of this year this release of this strategic petroleum reserve is that amount, one million a day until they can get up to at least replacing that million now, it may be more. there seems to be some real interest in or at least some activity that would suggest it might be more than a million, but we're not in a position to say that yet we're doing what we can to be able to stabilize the markets. our allies in europe are also looking at how much they can release, again, to stabilize the market we know at any given day, you're going to see volatility in the price. it's going to go up or down based on external factors but we want to make sure supply and demand meet each other >> secretary granholm, thank you for the information. we appreciate it

>> thanks so much. >> jennifer granholm, secretary of energy. let's check on the markets because we're seeing session lows right now, down more than 250 on the dow the nasdaq is the big loser on the day, down 2.25%. we have given back all of yesterday's gains and then some. small caps down 2% s&p 500 down 1.2%. >> up next, mike santoli looking at the support levels for tech stocks in his dashboard today, as the nasdaq does sit at session lows >> later, bruce richards says there's a great disconnect in the market he will join us with his warning for investors and what he's doing about it >> and biotech having another rough session. check out shares of vir. the fda saying an antibody treatment developed by vir and glaxo no longer authorized to treat covid-19, with data showing it's unlikely to be effective against the new ba.2 subvariant

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nasdaq is leading the

declines in today's session, down 2.3%. mike santoli taking a look at the big tech performance compared to the average s&p stock. what did you find? >> a lot of story lines along with it that perhaps people were less worried about yields going up, perhaps it was just about the idea that earnings durability of the nasdaq was something that people now all of a sudden wanted. to me, it looks like there was technical action recently. this is the nasdaq, and this recent bounce of outperformance since mid-march pretty much happened from the floor level that's been established shortly after the pandemic started this is a four-year chart. this shows you right here, off to the races with the lockdown in early 2020, and the nasdaq is still preserved most of that outperformance i do think the question is, are we ever going to get to the upper end of that range again? it's not necessarily seeming to me like it's the big nasdaq stocks that are reasserting leadership in the market they had more catchup to do,

maybe still have more catchup from here, if in fact the market is going to be on better footing. but isn't so much necessarily about the fed or yields or other drivers like that. just in the short term >> consumer discretionary and technology, worst performers now. ark etf innovation down 6% >> marathon asset management bruce richards issuing a warning, why he thinks the s&p could be on the verge of a nearly 20% plunge, when "closing bell" returns. (vo) some bonds last a lifetime. some bonds inspire confidence, and some you grow to rely on. these are the bonds worth investing in.

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near session lows as we head to the close tech getting hit the hardest, down 234 on the dow. joining us, brucerichards, marathon is a global credit manager. $24 billion in assets under management bruce, good to have you back on the show you have been talking about recession for a few months now the bond market looks like it's catching up with the inversion of the two-year/ten-year curve is that still where you think we're headed and are you a seller of the stock valleys? >> a few things to unpack. number one is the two/ten curve, i look and say it's a negative 70 basis points because your one-year forward rate is a negative 7 we haven't seen that since the volcker years. take a look at the forwaard curves and look at three notes earlier went from 28 basis points to 270 where it is now,

up nearly 250 basis points so i ask you, when the fed embarks on 50 basis points after 50 basis points after 50 baits points of hikes because they want to get the rate to 3% in the next year, when that happens, when they're selling down the balance sheet, remember, they took the balance sheet from $4 trillion to $9 trillion in the last couple years. when they start to reverse that, they're going to be selling treasuries they're going to be selling mortgage backed securities and the market won't be able to sustain that heavy selling right now, there's a big disconnect between what the bond market is starting to signal and equity markets are priced because they're only down 60 persh on the year. earlier on the year, they were down 13% you have a lot more to go, is your answer. >> downside. i think of you as more of a credit guy, but are you shorting stocks at these levels >> we have options on where we do, but we also think high yield is going to be under a lot of

pressure high yield bond spreads are a measly, i say measly because it's in the 90th percentile of spread tightness they're a measly 325 off treasuries that's it. and so i think there will be at some point when stocks are down 20%, they'll be out beyond 500 spread there's going to be a very different scenario for the markets when financial conditions really tighten, is when the fed really raises rates, when the markets start to appreciate how much they have to sell down their balance sheet, and what thatmeans for treasuries hitting the marketplace and a flight to quality that happens as a result >> so you think we'll see a recession when >> i'm calling for looking at the inverse of the curve now, calling for about a year and a bit out. so summer of '23 is when we should mark our calendars. >> really feels like that market hasn't priced in any kind of earnings slowdown. expectations haven't budged. and i have to say, bruce, some

of the commentary, i highlighted carnival at the top of the hour. they aren't seeing it. there is still a ton of pent-up demand, especially for travel. labor market is super strong wages are going up it doesn't feel like we're on the brink of a recession >> you'll see goods start to soften and see services, particularly travel related services, because people have been locked up for so long, start to accelerate. so you'll see a rebalancing within but what i'm talking about is overall s&p earnings which would be growing mid-teens, expecting to come into this year growing around 8%, will close the year with growth rates only about 4%. what you'll see are the ceos, while they exceed last quarter's earnings, you'll start to see forecasts start to -- forecasts lower earnings going forward what that means is cost pressures because inflation is running 8%, cost pressures will really start to hit earnings

we're seeing that already in the margins of companies as 40% margins become 30% margins when you look out over the next 12 months, and we're seeing the guidance there, and we're seeing that in the early numbers that we're seeing from, you can look at companies that are in the news today kraft, because people are going down in brand because food costs are going up so high so they're going to in-store brands as opposed to brand label. so we're seeing that across the board. but mostly, it's the consumer weakening because wages are getting eaten up by inflation, and discretionary spending is starting to decline. so it's going to be led by consumer consumption and a buyer's strength for prices from this point going forward for anything that's discretionary. >> it's quite a warning, bruce want to have you back on soon. we have to leave it there, but we have to talk about china as well i think you're still bullish there. bruce richards of marathon

a warning of a recession pretty dire circumstance for the market >> here's where we stand, by the way. we're at session lows and we have taken another leg lower, down 276 or so on the dow. down 2.3% on the nasdaq. bruce richards not helping sentiment there. we are seeing pretty much a lot of the sectors under pressure at this moment. what's holding up? utilities, real estate, and consumer staples a big downgrade of ups dragging down transportation today. find out if it could mean more trouble for the broader group later on "closing bell."

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the sell-off picking up steam all hour long. we just hit down 300 on the dow, down 290 right mow salesforce the biggest weight followed by boeing, disney, and intel. staples holding up best. we're going to continue to follow the sell-off and hit some of the big moving names especially the nasdaq which is down more than 2% in the market zone, next t'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! ♪♪

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down 302 now on the dow. we have 19 minutes left in the trading day. we're in the "closing bell" market zone. mike santoli here to break down the crucial moments of the trading day. plus kristina partsinevelos here with a big drop in chip stocks mizuho's dan dolof here on the sell-off the nasdaq leading the declines, down more than 2%, on track for its worst day in more than four weeks, and mike, now down .5% on the week so this big spurt that we saw in the past few weeks, a lot of people say it was technical in nature it was about positioning we're now down 12.5% off the highs on the nasdaq. does this mean that stocks are still vulnerable to rising rates and all the other fears out there, fundamentally >> we're absolutely still vulnerable to real fast moves in rates like we saw over the course of the day today. still vulnerable to the psychology, which is there for a good reason. that we are seeing signs of being late in the cycle, and

therefore, not a lot of runway for rates to go up or for the fed to act very aggressively without bringing up at least the possibility for a big slowdown i think we're still in that dynamic. probably will be for a while but we were up about 10% from the lows if we closed here, this would be the third 1% daily decline for the s&p along the way on that 10% rally, but they have only been these ne-day isolated sor of gut checks. we'll see if that continues on from here, but clearly, we got up to a level, and we have been saying this for days that's right on the borderline between it's either the maximum bear market rally or a resumption of the uptrend. so we'll see after today what it looks like >> what did you think about what bruce richards just said, that a seller of the rally, he's doing it with options, shorting stocks, and there's a big disconnect between the stock market and the bond market on recession and the stock market is way behind? >> i would say that i would -- when there's an apparent disagreement between what the

treasury market might be saying in terms of the yield curve and what equity seems to be saying, i look to the credit markets because that's what mediate those two markets, equities and treasuries the credit markets aren't in a recessionary panic right now there's sort of some softness in pockets of it, but it is not something that says to me that equities have their head in the sand and they haven't figured out we're headed right into a downturn >> we have recovered a little, down 250 on the dow. tech is the worst performing sector today chip makers and semi-conductor equipment makers hardest hit in the industry with the group on pace for the worst day in nearly a month. kristina partsinevelos joins us. we have seen some bullish outlooks from chip companies recently so is that not resonating? >> no, it's not, because a lot of investors right now are worried about the immediate pain points and whether this growth trajectory can sustain itself. for example, you have got covid lockdowns happening in china, weighing on a lot of supply

chain. you have of course the cyclical environment that's hitting all of tech, so rising interest rates and semi-conductors fall into that category then you also have of course a trend, weakness in handsets, weakness in pcs. amd has great exposure to pcs. those are three main points investors are weighing ford announcing today the chip shortage is still hurting them and yet you have a lot of companies, adi, for example, they had an investor day today and they're extremely bullish. they actually raised their long term revenue forecast from mid-single digit to 7% to 10% range. you have this divide going on between the investors and the bearishness tone and then the management that is relatively bullish, and i'll end with one quote that stood out to me, they said, we have not seen such bearishness since the trade war with china in 2018 and 2019. and analog is one example that the stock is down over 2% right now. the index, though, also down over 4%.

>> what are we expecting to hear from the companies we got a little bit of a tell with micron. i thought that was pretty bullish as far as the fundamentals being very much in tact and cycles like 5g still in big growth phases. >> right, but are those cycles that something would happen in the immediate term within this year or the beginning of 2023? that's the big question. so a lot of these companies, micron, amd, they talk about the push to data centers, we're going to need a lot more storage. they're going to be focusing on other products in the data center but that's something that is still going to take a little bit of time to transition, right so that's something that could be weighing on the sector in the immediate term >> kristina partsinevelos, thank you. we have a news alert here on spirit airlines. phil lebeau has it for us. phil >> sara, this is an interesting move jet blue, according to "the new york times," has made a bid to buy spirit airways for a deal that would be purchase price

would be $3.6 billion. now, you might be saying, wait a second, isn't spiret already in a merger you bet, spirit and frontier have agreed to merge, so that is an agreement that would have to be unwound if spirit were to say, yes, we would like to be acquired by jet blue so unclear exactly how this would transpire or what this means. but there is already an agreement between frontier and spirit to merge. would spirit unwind that agreement in order to talk with jet blue accept jet blue's offer? remains to be seen we have calls out to all of the principals involved in that, but an interesting move by jet blue, making a bid for spirit for $3.6 billion. sara >> the stock is spiking, up more than 20% so just to be clear, phil. i don't know if there's any way to tell this is it a better deal, a better match, is it a better strategic fit for spirit to go with jet blue or for spirit to go with

frontier >> look, yeah, remember, frontier, which is in the merger with spirit, there's a pretty nice fit between those two airlines in terms of low cost carriers, there's not a ton of overlap regarding their route structure. there's not a huge amount of overlap between jet blue and spirit they both have a big presence in florida. so that certainly would be an obstacle that might have to be overcome unclear exactly how this matches up dollar for dollar, versus the merger with frontier but again, remember, both the boards of spirit and frontier have approved that merger, so they would have to -- spirit's board with have to undo that agreement in order to start entertaining this offer from jet blue >> spirit shares are halted, up at those high levels frontier is higher jet blue down almost 7% on the news phil, thank you very much. let us know if you have gotten anything more here >> let's get more on the tech

sell-off in the meantime the manager director at web bush securities joins us now. he covers alphabet, twitter, facebook, which are all getting hit after all of them have been hit hard on the prospect of rising rates are you a buyer on some of the valuations right now, or do you sell because the macro noise is still there and it's still proving to be pretty vulnerable for this group >> sure. look, i would expect to continue to see some vulnerability as we kind of move throughout the next couple months. i am a buyer of strength and high quality names, with a lot of the valuations we're seeing, a lot of names are trading at trough valuations. i think the macro is certainly off the highs we have seen over the past couple years but it's also holding up still relatively well that could certainly move in the direction if rates keep going

higher and the macro weakens, especially around the consumer but so far, we're seeing still pretty solid healthane lot of pockets. and a lot of valuations that i think you can consider pretty attractive right now >> like what which one do you like the best >> so, if i think about that combination of highest quality with most attractive valuations, you know, i would put alphabet up there, near the top, one of the highest quality names we cover. still, fundamentals there are in good shape you can kind of go further down the curve with names that might be riskier, but the valuation there is even more attractive. staying within that digital ad space, pinterest is up there you know, we cover shopify, that valuation has come in quite materially consider them a best in class. e-commerce operator. so there are a lot of high quality companies with valuations that if the

fundamentals improve a little bit, you know, think about where we are right now, we should start to see celebrating growth as we lap the toughest comp in 1q for most of these companies reaccelerating growth, macro holds up better, estimates can move up again. that's the kind of recipe you need for valuations to expand, and i think there's a lot of those in this tight pocket >> but not twitter you still don't like it? you're still neutral, even with elon musk now as the biggest shareholder and a board member >> yeah, again, go back to the fundamentals so elon musk coming on, being on the board, i think net-net, that's a positive, but where his focus has been, you know, around the free speech and what should be acceptable and what shouldn't be acceptable on twitter, you know, that's fine. kind of good conversation, but

kind of think about what's going to drive twitter forward here, what should drive the valuation and the stock. and that's user growth and it's better monetization. is elon musk coming on the board of twitter going to drive better user growth. is debate around free speech going to drive better user growth over the next couple years for twitter? i think that's debatable, and there's a lot that we need to see to get more comfortable with that >> so interesting. yesterday, the analysts not impressed by elon musk thank you, ygal. good to talk to you. >> coinbase is getting clobbered. mizuho lowering the price target to $190. the decision to launch the nft marketplace is questionable, especially as nft hype is waning play pal, block, affirm, all significantly lower. joining us now, dan mizuho analyst who made the call on coinbase, i'm curious,

because bitcoin has held up better lately than some of the high growth tech stocks. >> yeah, thanks for having me. >> why did you make that call? >> well, the call is basically on not on bitcoin, the call today is on them going all in on nft and spending hundreds of millions of dollars on nfts, right when it was at the peak, when you look at them today versus three months ago, the hype around nft has come down. this was maybe a one-trick pony that was strong in january and february that's when they made the investment they're spending $4 billion to $5 billion on technology and gma this year. big part of it is going to be on they're hiring 6,000 employees and going all in on nfts and this is kind of a me too action. they don't have a huge competitive advantage in nfts and the hype around it is going away i think it's a mistake remember, if they go towards the low end of their mtus or their monthly actives this year, they're not going to be

prof profitable they're going to lose $500 million, so it's the wrong time to make this bet in my view. >> what about their core business and the scale and sort of first mover advantage that they built there what's that worth? >> i agree so they have an enormous first mover advantage. they're gehrig share in bitcoin if you look at the share of bitcoin, while it's about 2%, on a global basis, they're gaining share. if you think about kind of the mote of this business, if you look at institutional take rates, institutional yields, what institutions pay to trade bitcoin, that's about two to three basis points it's very, very small. consumers pay over 100 so i think what you'll see at the end of days is that consumer yields are going -- the spreads are going to shrink and they're going to be in line with the institutional yields i expect a convergence and pressure on the revenues over time so i don't like their business model. i don't think it's sustainable over a long period of time >> all the fintechs are under pressure today

you had that block cash app investigation, a former employee downloading customer information, but clearly, the group has been hit hard. there are concerns about a consumer slowdown. which valuation do you think has gotten the cheapest in the group? >> i still like square the most. i mean, especially on a day like today, where they had -- that security breach, which i don't think is going to be remembered in a week or two weeks the fundamental work that we have done here shows you that the cash app could be 20% above where consensus estimates are to date people completely don't understand what they're going to do with after pay and cash app and the seller business, the point of sale, combining the trio and creating like their own ecosystem. so i think square is light years above and beyond everyone else in the ecosystem that's the one i'm most bullish on and the one i see working, especially as we near the analyst day on may 18th. i view this as a huge catalyst i would buy more square today. >> which is actually block, which is down 6% and down about

15% for the year dan, thank you dan dolev. >> let's turn now to the transport stocks having another rough day. shares of u.p.s. falling after wolf research downgraded it to pure perform from outperform the firm expects to see slowing volume trends which could lead to slower pricing later this year the whole sector under pressure. trading lower right now, and let's bring in frank holland frank, leading indicator for recession or at least for the economy, typically that's how we view the transports. there's also talk of a freight recession. what can you tell us about that? >> yeah, number one, sara, it cannot be overstated freight rates have declined. they have fallen hard. about 80% decline in growth from the start of february to the start of april that was a real catalyst for the u.p.s. downgrade today wolf research saying they're losing a lot of pricing power. but that's not completely a surprise all of our lives have shifted dramatically for example, back in january, we saw a high of container ships at the port of l.a. and long beach,

109 ships. that's down 60% fromthat level right now. again, a dramatic shift, but all of our lives have shifted. we're not wearing masks. we're eating at restaurants more and shopping in stores more. we're not ordering online as much as we had it was expected freight rates would normalize, but this is kind of the new normal they normalized back to 2021 levels if you look at the comparison to pre-pandemic, they're about 50% higher than pre-pandemic some of this decline in rates is also decline in volume partly caused by the shutdown on the shenzhen port in china the third largest port in the world, shut down due to covid. that reduced a lot of the traffic coming out of there, and it came right on the heels of lunar new year that's a time in asia when production slows down, period. you put those two together, you're going to have a lot less volume coming out of asia, which really fuels the u.s. freight economy. in a few days we'll get a lot of answers about what's really going on you might hear a lot of analysts talk about record low inventory in u.s. retail stores. that's true, on paper at least

that number that people get from the st. louis fed, that's lagging by two months. so the number we got last month was actually for january coming up next week, we're going to get the cash freight report which will give us a better indication of where the freight market is. on april 14th, we get the st. louis fed's report for february, that will give us a sense of the inventory levels in february if we see the inventory levels tick up, there may be warranted concern about freight rates continuing or continuing to fall if wesee them stay at what could be historically low levels maybe it's overblown >> got it, thank you very much we have two minutes to go. mike, what are you seeing in the market internals down 314 on the dow. pretty much been a deterioration all hour >> a steady slide, and relatively weak internally as well small caps underperforming, it often means breadth is negative. more than 3 to 1 declining to advancing volume a real erosion from a couple hours ago. want to look at the u.s. dollar

index. lael brainard, fed governor, points about reducing the fed balance sheet as well as aggressive hikes that's a tightening noise, and the dollar up near the 100 mark, so right back near april of 2020 levels at that point, the volatility index now has bounced above 21 again. it's still in this sort of short term up trend if you look at the lows from late last year still not any kind of all clear signal, but more relaxed than a few weeks ago. >> as we head to the close, what's working today utilities, health care, consumer staples, and real estate those are positive in the s&p 500. not enough to lift the overall index, which is down 1.3%. when you have big heavy groups like consumer discretionary, technology, and communication services all lower, industrials, energy, term materials and financials also not having a great deal higher yields has been a theme, pressuring technology stocks apple, tesla, nvidia, alphabet all under pressure why you're seeing a 2.3% slide in the nasdaq right now.

small caps also giving up about 2% or so the dow jones industrial average down about 300 points here into the close. biggest weight on the dow, salesforce, as the growth trade gets hit today on the back of rising rates it's a reversal of what we have seen yesterday and what we have seen in the coming weeks but pretty much what we saw in the first quarter of this year earlier, that is that does it for me on "closing bell." we'll send it into "overtime" with scott wapner. >> welcome to "overtime. i'm scott wapner we're just getting started right here at post 9 in just a bit, we'll speak to billionaire investor leon cooperman on where he sees the volatile markets heading from here we do begin with our talk of the tape the brainard bombshell, the fallout for stocks which finished with a flurry of selling. let's welcome in joe terranova halftime investment committee. this was all about brainard, faster qe, qt, faster than the last time. i mean, this was like the most dovish person on the fed going

straight up hawk