together a little bit in this ukraine moment, but you wonder if that's going to last culturally >> absolutely. we have seen people come together only to come apart when the crisis passes. eamon, great having you here >> so great to be here thank you for having me. >> traffic is going to be a nightmare. >> when are you sending the weekend? >> right after this. >> thanks for watching "power lunch. >> "closing bell" starts right now. >> the dow is jumping and the nasdaq is falling again. the most important hour of trading starts now happy friday, and welcome to "closing bell," everyone i'm sara eisen here's where we stand in the market s&p just barely positive nasdaq is underperforming and the dow has been outperforming all day. up about 200 points right now. nasdaq down 100 points is a tale of two markets there underperformance in technology that's been a theme. as treasury yields march higher again. outperformance today in energy, financials, health care, and materials. unh, united health, biggest contributor to the dow gains

right now. something else i'm watching into the close, inu.s. dollar breaking out surging past $100 for the first time in nearly two years it's been up every day this week the euro taking out march lows money chases yield and rates and certainly, those rates are rising in the u.s. that strong dollar going to hurt earnings in the coming quarters. cuts into overseas sales so far, market appears to be okay with it on the show, brian niccol, ceo of chipotle will join us the whole restaurant industry dealing with rising costs, a tighter labor market, and uncertainty surrounding the consumer that exclusive interview in a few minutes. let's get to our top story is the fed bear behind us? investors were spooked this week by comments from fed officials lael brainard and jim bullard. the release of the minutes on wednesday, but the dow at least gaining back grown today, and almost flat for the week is the fear priced in? let's bring in peter chukeane and lou paulson. on the opposite sides of the issue. jim, you do not think this is a

bear market and wree have seen a bear market rally. you're more positive why? >> i think we had our correction, which you normally get in the second year of a bull market probably lasted about a year starting last march. most stocks haven't done much since. it did what corrections do, sara it took the concentration of leadership out of stocks it significantly revalued most of the market, and it scared us all to death and the sentiment indicators are very pez mistm, and we have done all of that while leaving the fundamentals of the economy really strong. created 525,000 jobs a month in the first quarter. so if i like the combination of a lot of fear, a lot of things to worry about, and good underlying fundamentals, i think that's a dynamite combination for the second leg of the bull >> peter, why do you disagree? >> well, you know, the economy always feels strong like this at inflection points. and you know, there are sort of

three ingredients that typically present themselves prior to the inception of a bear market or even recession one is a fed tightening. two is some sort of a price shock or commodity shock like we're seeing in oil. and thirdly, some sort of a global systemic shock. and frankly, i think this is a rare situation where we almost have all three at the same time. and so nominal growth may look strong, but that's precisely what it is, it's nominal inflation is sort of changing the way we need to analyze that data >> so then how do you perceive, peter, what we have seen -- in the last week, yes, we're headed for a loss in the s&p of 1%, but pretty tremendous resilience to some of the threats you just out outlined >> not at all unusual to see pretty convex rallies within bear markets in fact, they can be some of the most tricky rallies to navigate,

if in fact one is looking to hedge risk or reposition a portfolio. i think that's precisely what we have here. it's not surprising to me. when i look across at other assets classes, when i look at speculative grade spreads, they're almost 400 basis points. and i think they are telling us something that perhaps broader equity indices are not >> jim, there's also troubling fact which is the leadership in this market has been very defensive. health care, staples, utilities. suggesting that economic weakness is coming so how do you interpret some of the risks peter was talkingunts, the price shock, the inflation shock, what we're going to see with central banks and the fact the market is not exactly sending a bullish signal on the economy. >> well, i think that bear markets don't generally start on day one of fed tightening. generally takes several times before that occurs i agree that the point, there

are lot of things people are worried about. problem is i think we have been vetting some of these are quite some time. we have been vetting the fed since august i think the market has kind of adjusted to that already a lot of the fixed income market has adjusted to that already look, tightening happening in every recovery it's part of the success of a recovery where tightening has to be done. that doesn't mean recovery is over by any stretch of the imagination. and this isn't just nominal growth we got going on here. as i said, we created 525,000 jobs a month in the first month of pay roll. we created 862,000 jobs a month household. that is not the stuff of lack of real growth. that's very strong real growth, capital good orders going up, profits keep going up. estimates of earnings keep going up these are all signs of a really healthy economy. and the balance sheets, peter's point about getting in trouble, i have never seen a household balance sheet this healthy, maybe in my entire career in

terms of liquid and low debt to equity ratios. low debt service ratios. corporate sector is just about as good. i don't know i think there's really good odds inflation rolls over, sara, in the second half of this year mainly because we got supply coming back with the labor force now surging in recent months and if that happens, a lot of these fears about the fed and about how high rates have got to go up are going to dissipate and optimism return. >> well, we have heard from both camps. there you have it. really strong arguments on both sides. jim and peter, thank you have a great weekend with the dow up about 200, after the break, burritos go digital. chipotle stepping into the met averse through a tie-up with ro roblox you're watching "closing bell" on cnbc.

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. today's stealth mover is rackspace getting wrecked today. oppenheimer cutting its rate to perform from outperform, removing a price target, saying it's a state of profitless pros prosperity share ares are down almost 12% could your next meal come from the metaverse.

chipotle offering players a chance to score a free real world burrito if they can successfully make a virtual one. brian niccol joins me to talk about that and a lot of other things brian, always good to have you welcome. >> good to be here >> i wouldn't expect anything less from you. your back kground you were cmo of taco bell and pizza hut. how big of a marketing opportunity do you see the metaverse as >> i think it's a tremendous opportunity. we're always looking for new ways to engage with young people and get them excited about engaging with our brand. yesterday, we had just a great -- i would say kind of launch on national burrito day in the metaverse where people got to roll burritos, deliver burritos it was a lot of fun. we had a big team here really excited, focused on it i got to spend some time with them while we were launching it. it's pretty amazing to see what we can accomplish when we're

willing to experiment and kind of try to lead in a way that we en engage >> what else do you have planned in this space? more with roblox, other companies or opportunities you're looking at? like meta. >> yeah, obviously, the team is always trying to figure out what's next. from a standpoint of leading in culture. and you know, they specifically told me not to give away any of the goods that they have coming down the ramp here but i'm really excited about the experimentation, how we're learning in the space, and i think we can do really clever things that continue to move our purpose forward around real ingredients, real food, real culinary, even when it happens in the metaverse >> well, let me ask you this what about -- everybody has a currency in the metaverse. i think you have burrito bucks there's zuck bucks of meta a lot of this is sort of coinciding with the rise in bitcoin and cryptocurrencies and nfts and all of that, which i know you're looking into

is there plans for accepting burritos with bitcoin if you're going to expand deeper into the metaverse and into these platforms? >> not right now we have been spending our time on how do we eliminate friction in the payment experience. but not going all the way to accepting bitcoin or cryptocurrencies obviously, we have our currency in our rewards program that people can reward themselves with and then ultimately redeem at restaurants but really where we have been focused on is how do we make payments as frictionless as possible whether it's in the restaurant or in the digital space. >> so back to the real world for a second, brian. and the market, which has been rough on restaurant stocks down about 11% this year your stock has been dragged into the selling. there are serious concerns about what's happening with the consumer what are you seeing? any slowdown in traffic or spending >> you know, what we're seeing with the consumer is, obviously, they're going to be a little

more diskrmcriminant in where they're going to spend that's where we're focused on making sure we have a terrific value proposition. luckily, the consumers to date have really got a strong balance sheet. i think the person before you was talking about that and they're in a strong position obviously, as they see gas prices rise, that gives them pause. other places in the grocery store, you're seeing increased prices so what we focus on is how do we make sure we give the best possible experience so when they're ready to spend a dollar in the restaurant sindustry, thy choose chipotle. we know we have a uniquely positioned brand with the culinary we provide and the way we give people access. we continue to see strength in the consumer, but i think they're going to continue to be more discriminate going forward as they decide how to spend their dollars. >> does that mean that you have to change any plans with price increases? because you have raised prices

you have seen good pricing power. and you have told us that more price hikes are coming is the consumer still willing to tolerate that? >> yeah, i mean, look, unfortunately, the inflation that we have experienced resulted in thelast thing we would like to do, which is to take price we did have to take some price i have talked about this in the past we have tremendous, i would say, value. therefore, zee the pricing power to take the pricing when we need to ideally, i would love not to have to keep taking price, but we'll have to see how everything unfolds going forward. the good news is, our restaurants have been staffed at a level they have never been since 2019 frankly, we're staffed better than we were, so we're ready to give people the experiences they want and expect for the dollar they're choosing to spend at chipotle whether that's digital or in the restaurant, we're staffed, ready to go with a really energized group of employees that really are passionate about the chipotle company and our

purpose. >> what's happening on the food cost front for you as we have continued to see these prices of all sorts of commodities go up >> yeah, look, we have seen -- we talked about this in our most recent quarter at the end of the year obviously, we saw some movement in beef, we have seen some movement in avocados but the good news for us is we have been able to work, i think, really closely with our partners, and frankly, the guys in the supply chain have done a phenomenal job working with our partners, insuring we're smart about what costs need to be taken on and how we can mitigate the impact of those costs. but we're continuing to see that inflation move through the supply chain i'm hoping we're getting close to where it starts to normalize and we don't continue to have inflation. but we haven't seen it stop yet. hopefully we'll see some improvement in supply chain and then we can see some mitigating of inflation going forward we're going to do everything we

can to figure out how to minimize the impact on our customers and teams. >> i wanted to be clear. when you say you're expecting the consumer to be more discriminate are you seeing changes, patterns in spending or ordering or behavior from consumers that's leading you to believe there's a shift happening? >> it's more, you know, we obviously study the consumer from like how they're feeling, what their perceptions are, and what our data tells us is people are thinking twice about how far they want to drive, how often they want to drive they're also thinking twice about whether or not they want to spend their dollar on a restaurant experience or an entertainment experience i just think it's becoming more of a, i would say, conscious decision on how they're going to choose to spend their next dollar versus maybe a couple months ago they're a little more loose and optimistic about their financial situation. so i think that really puts the onus on companies like ours to make sure we're doing everything we can to be rewarded with their

business and you know, usually the mindset leads to behaviors and we want to be a part of a positive experience for consumers so that when they're ready to make that eating decision away from home, chipotle is the solution >> really good color brian, thank you for joining me. brian niccol >> thanks for having me. take care. >> just want to show you what's happening with the market. dow remains higher we have been wavering between gains and losses all day long. we had a tick up here. dow up 242 nasdaq still underperforming but coming off the lows. s&p 500 building on some gains it's being led by energy, financial financials, and health care. >> after the break, chart watching jeff degraaf says there's a changing trend in the health care and financial sector that is worth your attention he'll lay that out for us in the charts next. >> later, shares of tesla pulling back after the company unveiled the much hyped giga factory in texas we'll talk to gene munster about what the opening means for st wh o"csigyerm strate ayitusn long bell.

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. dow up about 215 points. s&p 500 is just positive sector performance divergence. energy, financials and health care doing well today. technology, consumer discretionary, industrials and communication services are all a little bit weaker. but it has been the defensive parts of the market that have led us higher lately staples and health care. let's bring in jeff degraaf of renaissance macro research on the chart, jeff, you say the one to pay attention to is the financials versus the health care stocks. explain the chart and why we should care. >> sure. well, the chart of health care is the xlv, the health care etf. the chart of financials is the xlf, the financial etf ones breaking out and is xlv health care, and one breaking down, the financials that's exactly what should be happening as we get into late cycle. these were two sort of holdouts

where a lot of work was indicating the market was entering a late cycle. you had energy outperforming health care starts to outperform and financials start to underperform and in the last couple weeks that's started to happen it just reiterates in our view we're in a late cycle type environment. that doesn't necessarily have to be bearish, but it requires more sector focus and making bets in the right spots and not being as diverse as you might otherwise be >> so what do you do with bank earnings that are going to start next week? how big of a catalyst do you think that will be for the group and for this notion that we are late cycle >> they're a good place to sell them not all financials are bad frankly, the insurance names look fantastic even within financials, insurance athing well tends to be a more late cycle phenomenon as well. i would use an opportunity to see the strength in financials

which are oversold, so in fairness, they can bounce. i would use the oversold condition in financials as they bounce to lighten up and reallocate those dollars into trends we think are sustainable. those trends right here are in health care. >> which is the best performing sector of the week, up almost 4% jeff degraaf, thank you very much >> tesla shares have rallied more than 20% over the last month, but the stock is still in the red for the year will a new texas factory and a wave of new products being teased by ceo elon musk help drive the stock higher tech investor gene munster weighs in when we come back.

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up 224 on the dow. elon musk celebrating the opening of tesla's new assembly plant in austin. at the opening event last night, musk teasing new products in development like the cyber truck and a robo taxi. have a listen. >> this year is all about scaling up and then next year there's going to be a massive wave of new products >> and musk just tweeting a few moments ago about the price of lithium, which goes into batteries saying it has gone to insane levels and tesla might have to get into mining and refining unless costs improve.

joining us now is gene munster from luke ventures hard to ever know whether it's a flip comment last time he made a comment about twitter, nobody thought anything of it, then he became the largest shareholder and joined the board what do you think of tesla getting into the mining business >> i'm naught surprised just as i was not surprised to see him get involved with twitter. this is something that seems like it's kind of a frivolous headline from friday afternoon, but it's really important to understand the dynamic between tesla and traditional auto this is true vertical integration. not only taking it from the point of how the manufacturing facility played out, what they did yesterday at giga texas, but going to getting, these are not rare elements, but getting elements and contracts on those. they have been doing that for a long time, now getting into the mining of that, that ultimately is an understanding of what it takes to build a car, a computer on wheels in the future. this is a step beyond what we vene with their futures

contracts and their deals they have with other elements but again, we don't see any traditional auto doing this. and i think it's yet score one for elon and his vision. just to take it to the next level. and i think you're going to see -- i think there's a high probability that they ultimately go there >> wow so you think this is a real thing. gene, i have to ask you about the event last night there was a lot of excitement and some news at least they're going to start building the truck next year. but at the same time, one of their biggest factories in shanghai, i believe, remains closed there are reports it's been closed for at least 12 days. wasn't this the factory that produced half of tesla vehicles last year? how much is this going to hurt >> well, it's going to come up it is something that passes the materiality standpoint for investors and simply to put numbers around this, they're probably going to miss 30 days of production from shanghai. that is about 40,000 vehicles. if you put that in the context of the quarter, that's about 8%

of the quarter, 8% of the june quarter, really talking about the june quarter here. if you look at the full year context, assuming that production works itself out, you're looking at a 2% headwind. it is something that needs to be factored in. we have seen shutdowns before. i think what's more important than what we're seeing in shanghai and with the truck drivers and the inability to get things moved around, what's much more pornimportant is the simpl demand if i may frame in what's going on with tesla demand, we look at tesla demand across eight countries, all of their different models as of this week, the average wait time is 4 1/2 months. now, to do the same exercise with traditional carmakers is difficult because they don't quote lead times you have to go through a dealer network. we called five dealers, a small number, but in the u.s. this week, and the average lead time was two months what we're seeing is let's put some weight in the few calls we did and obviously, we have good

visibility with tesla. their demand essentially is 2x what traditional auto is i think that speaks to the investors are going to be okay with this shanghai shutdown as long as demand is there. i think they're going to be okay >> that's really interesting information. you're a fan gene, thank you for joining us >> thank you, sara >> gene munster. >> here's where we stand in the markets as we head into the close. the dow remains higher and it's had a nice surge, up 233 points. again, we were down today about 113. we have been all over the place, up 324 earlier s&p 500 is just flat it's this tug of war between some of the defensive groups like health care, energies higher again today, and technology, which is lower the nasdaq down 1% wall street is buzzing about oil sticker shock and we're not talking about crude oil. it's cooking oim up next, why that's driving food prices to record highs and remember, you can listen to "closing bell" on the go by following the "closing bell" podcast on your favorite podcast app.

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what is wall street buzzing about? food prices. getting worse. food costs hitting a record high, according to the u.n and according to the u.n., prices in march jumped nearly 13% as the war in ukraine caused turmoil for the production of grains and oils. we reported how major russia and ukraine are for wheat and barley and corn ukraine is also a big producer of sunflower oil, making up 47% of the world's exports it's been a domino effect from there with other cooking oil prices up. vegetable oil and olive oil, too. and the shocks have now spread beyond there look at orange juice oj futures on pace for the fourth positive week in a row,

hitting highs we haven't seen since 2018 bank of america saying food inflation will persist b of a upgrading the grocer to buy, saying it expects consumers to accept the bulk of the prices and shift part of their consumption toward value maybe a little bit of a late call kroger is up 36% this year, but it doesn't look like the food inflation shock is coming down anytime soon and appears to be worsening given some of these moves in commodities when we come back, shares of robinhood under serious pressure after goldman sachs slashed its call on the stock. we'll dive into that call and much more when we take you inside the market zone so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors the garcia's, love working with you. because the advice we give is personalized. hey john reese, jr. how's your father doing? to help reach your goals with confidence.

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20 minutes left of trading we're in the "closing bell" market zone. medley global advisers ben emons here to break down the crucial moments of the trading day, plus john chapelle on the rough ride for the transports, and kristina partsinevelos on another ugly day for chip stocks. we'll kick it off with the major averages on track for weekly losses s&p kind of around the flat line ben emons with me, let's start with the nasdaq, ben down almost 4% for the week. as treasury yields continue to march higher, past 2 .70 on the ten-year today what does it tell us about just how much of this new reality of fed tightening and economic slowdown is priced in?

>> sara, lean prices, and i think it will probably continue that way treasury yields are now on a march to try to price in and we may end up with the fed funds rate as we look at the expectations in the market, we're at 3.25%, 3.5% that the market expects by next year. the ten-year is going to move toward that level. it brings us back to 2018 highs. we know from that time, at that point, technology just didn't really trade that well, even though there's a lot of value in tech at this point, it's very sensitive to interest rates because it's such an area of high growth and rates rise, then growth is being affected i think that's why it's strange reporting. >> would you stay away from the group or be looking for some of those value names? if you are staying away, where do you go instead? >> yeah, i look at it as part of the strategy that i have been since this year, and you have to

really think of this year to stay out of the index. you want to be more equally rated between offense and defensive, as we talked provious in other shows tech is one part of it, there are companies, microsoft, the faang names that are strong companies. they are unduly punished by higher interest rates where their outlook for earnings and balance sheets are not reflecting any type of weakness. so it is an opportunity to keep in that 50/50 weighted portfolio. i think rising rates because of theflation also leads you to other sectors like materials or natural resources to be offensive, even emerging markets. on the other side, defensive with utilities as you will you get that combination, i think you can outperform the index here >> aren't you getting stretched on some of othe defensive plays like utilities trading at near record highs >> it's to be watched because utilities are affected by interest rates

but there's one difference here, tech has somewhat more leverage in this cycle than utilities maybe that plays a role here so i think if you spread this out, i think you can play it that way until we get through the data here so you look ahead at the week, inflation has been key in order to stay. if that comes out worse, you will take that off >> got it. ben emons, stick around, if you would. dow up 213 let's hit shares of robinhood dropping sharply on the heels of odowngrade at goldman sachs to sell from neutral. the firm says street estimates are just too high and notes fading retail engagement along the lower end customer base as a headwind let's bring in bob pisauna robinhood priced at $38. got as high as $80 in august and now at a new low around $11. goldman says now it's going to downgrade it what do you think of the call? >> thanks. yeah, isn't that helpful $38 to $11, now they give up a

downgrade. but there's three big problems here number one, you touched on this. robinhood lives and dies by retail participation last year and the quarter before, retail trader is back. turns out they weren't back. as the market grinded down retail participation pulled back that's down and that's a problem for robinhood. the other big problem is crypto. they went whole hog into crypto, but crypto volumes were also down about 40% in the last quarter. not showing signs of coming back finally, you have got very limited path to profitability. this is the big problem. you know this, sara. they're raising interest rates aggressively when you have a company that has a very limited path to profitability, they're not going to make money this year, probably not next year, you're going to get clobbered you saw this with the cathie wood stocks. even with growth, if you have low margins or declining volumes or flat margins or you have very

limited ability to make money, you're going to get clobbers and robinhood is getting clobbers along with everybody else in that group >> what are you seeing broadly as far as retail participation and how do you track it? do you just look at gme and amc for a gauge? what do you see there? >> there are private estimates based on -- there are various tapes you have to report to, including what's called the trf, the trade reporting facility they watch fluctuations in that. i'll give you a general idea in the old days, i mean, before the pandemic, we used to work on these assumptions retail was about 15% of the volume by shares outstanding it went, the estimates got up to somewhere around 22% or so last quarter, the end of last quarter and the end of last year the ones i just saw this afternoon were at 17%. so that's not nothing. i mean, that was a significant move, but it's definitely trending down, sara.

>> got it, bob, important trend. keep an eye on it. bob pisani >> it has been a rough week for the dow transports down 6% since monday they're tracking for the worst week since october 2020. let's bring in evercore transportation analyst john chapelle what changed this week >> it wasn't so much this week it started last week there were a couple indicators that confirmed people's views there was double buying, triple buying ahead of the last peak season that means inventories may resettle higher as the same time consumer demand starts to downshift. you talked about food prices, higher gas prices, people are spending more on services than goods. if inventory is reset at the same time when the consumer wallet pendulum starts to shift back toward services there is a veer that would weigh on freight demand >> people trochabout a freight recession. is that something you're seeing and hearing from these companies? >> yeah, i think it's a little early to throw out the "r" word.

we're coming from a very elevated level we need to put that in perspective. truck fueling, x fuel prices are down 30%, which in one month is a big move, but it's far from recessionary levels. as far as we don't go into a broader economic recession, even as inventories reset higher, it's strong to be calling for a recession, the other side is there's the demand side and the supply side. in the trucking market, there's very low barriers to entry every other strong cycle has been ruined by the dollars the truckers make. they can't do that because the eoms don't have the chips. so ordering of capacity has been very low if the demand side starts to flash a warning yellow flag, it means you probably don't get that rush to add new capacity, which may not take it as low as prior downcycle. >> there's some good individual stories. u.p.s. becoming sort of a battleground i know you don't cover it, but

you do, i think, prefer the rails over the trucking stocks why? >> a couple reasons. first, the rails have commodity exposure that the trucking stocks don't everything going on in eastern europe and how that translates into western europe with coal, with ag, even with crude by rail, that's beneficial to the rails. the other thing is the rails have very good pricing power that will carry them through the back half of this year and they won't be immune to a drop in consumer spending, but it just hits their bottom line a lot less so for those reasons we think the rails are a very good safe haven. pretty good inflation hedges and on a relative basis, they'll do better than the trucking market. >> what do you see there in terms of valuations given the slide we have seen in the group and how does that setup look into earnings? >> really interesting question so the rails look pretty -- they did look pretty expensive about a week and a half ago relative to the broader market. you look at the rails relative to the s&p when we put out our cautious industry outlook last friday,

the rails were trading 20 times. they have pulled back. the selling has been complete leindiscriminate two of our top picks are trading now at 17 times next year's earnings trading at a market discount at a time we think volumes will accelerate in the back half of the year on the trucking side, the tl guys trade cheaply single digits in some regards. but i don't think valuation really matters on the trucking side we're such a high on market spot pricing which is a segment where pricing is working against you, there's almost no floor on valuation. no one wants to catch the falling knife. we need to have line of sight on the pricing deceleration slowing and getting closer to a bottom, and that's when you start to bottom pick some of the trucking guys >> got it. john, thank you for joining us from evercore isi. >> also want to hit the chip stocks getting crushed again today. down more than 6% on the week.

nvidia, biggest loser in the industry 13% decline just this week kristina partsinevelos joining us now from the nasdaq i'm looking at the year to date here 18.5% lower for semis. 20% lower for semi-conductor equipment. i know they're very cyclical groups tied to the economy, but you also have shortages out there, and shanghai under lockdown how does it all add up >> you have this situation especially with the equipment manufacturers right now, asm, lam research, kla, applied materials that are warning their customers they may face delays of a year and a half, up to 18 months even. so when companies that are talking about building plants like intel, they can't get the equipment, of course, that's going to create a trickle effect for years to come. all of those equipment makers i just mentioned are down on the week you talked about nvidia. often this is a play about concern about profitability going forward and not necessarily the next exciting story. so nvidia, micron, all these

companies had investor days and talked about the shift into ai, artificial intelligence, the talk about the omniverse, the metaverse, and yet those are exciting stories in the long term the near term, the focus is around profitability, which is why you're seeing smalt of a sector rotation out of semi-conductors as the valuations for many of those companies are still very high. >> but still strong demand, right? i saw taiwan semi-conductor posted highest ever sales overnight. 36% revenue growth and 12% jump from last quarter. so it's not like there's been softening. i think cars and smartphones were a big part of the story, but have you seen any softening? do you expect to see that for the demand side? >> there war one story that stood out to me about samsung. samsung released a new smartphone in south korea, and just weeks after they released it, they have already dropped the price, which would show that demand isn't as strong as what we are expecting and you see a lot of people

talking about weakness in hand sets and pcs, so yes, taiwan semi-conductor is doing well there is tlengt. we're going to need chips when we connect absolutely everything around the globe, but in the short term, there's some weakness, no doubt >> kristina partsinevelos, thank you. absolutely big story of the week. >> vaccine stocks have been all over the map this week pfizer and moderna moving sharply in opposite directions johnson & johnson slightly higher on the week, trading nea an all-time high, and a new study saying covid vaccines sasked the health care system almost $900 billion between december 2020 and march 2022 let's bring in meg tirrell, who spoke with dr. anthony fauci, meg, about this and a lot more what did he say? >> yeah, sara. we talked about these findings which shows in addition to the savings to the health care system in terms of dollars, these vaccines also averted more than 2 million deaths and 17 million hospitalizations between december 2020 and march of 2022.

so really dr. fauci saying everybody who is eligible for a booster should go out and get one, including folks who are eligible for a fourth shot now i asked him about the timing on that he said he had gotten his. he recommends if you're eligible go get one we talked about what the future is going to look like. he said folks may still need another one in the fall, but here's what he said after that >> people keep asking, gee, does that mean every five months you have to get a boost? i don't think that's going to be the case, meg. i think what's going to happen is that once we get through this cycle, it likely will be similar to flu >> but of course, the exception to that, he said, is if we get one of these crazy new variants that really means the vaccines don't work you're back to square one. however, going into that sort of more regular flu market is something that people are trying to figure out. as you noted, pfizer and moderna going in completely different directions from a stock perspective this week. oppenheimer telling me it's because pfizer is trading more

defensively with the rest of pharma, which is very popular right now. moderna trading more like a vaccine stock, as it has if you look back over the last month, you see moderna, biontech, and pfizer up a bit. n novavax, it has filed in application, but we don't know if it's going to be part of the booster discussions going forward. sara >> what did he say about this current wave that we are experiencing of the ba .2 variant? how concerns is the white house and what are we seeing in the data in terms of hospitalizations >> the hospitalizations are still very low right now and that's the main question we don't know what's going to happen with them we have seen them go up in the uk, for example. what he said is we're in the midst of an uptick in some places and we don't know how big the wave is going to be f we're going to see waves regionally, but he said when you see cases go up, even if it's to a lesser extents, you see some of the more vulnerable people get

impacted so they're always worried when you see increasing cases. >> meg tirrell, thank you very much talking to dr. anthony fauci let's bring back ben emons on this and the broader market. the moderna/pfizer comparison and contrast is pretty interesting because moderna trades like a growth stock, and it is, and pfizer like a health care defensive stock it's like consumer discretionary versus consumer staples. which defensive sectors do you like best right now given the fact that we have started to see this move already play out >> still on the stable side. that seems to be really where the market is gravitating to because this sort of phase where the market is uncertain if the economy will or will not measure slowdown ahead of us, then staples are probably the best bet there, in addition to health care, as meg just outlined you do have ongoing demand for these vaccine stocks, if you will, vaccines it's essential so i think the defensive side of

the market that will play well and keep the market at least in some sort of buying without seeing a major correction. trying to juggle will it be a recession in the near future or not. >> we're also looking at the u.s. dollar, and i highlighted the fact it went over $100 today, and it's been basically steadily marching higher higher interest rates in the u.s., which is ironic because a lot of people are talk about the dollar's demise with the russian sanctions. why isn't that more of a headwind for the market because that will cut into earnings? >> it certainly will at some point. dollar strength we have to watch. at the moment, it's not really impacting market share because you have other central banks trying to lift rates too and although the dollar is getting the surge, like what we have seen in 2014, 2015 before the fed liftoff and that uncertain environment, but if we break through that $100 barrier,

it will start affecting emerging markets and this is one dividend of a stronger dollar, it will affect global commodity prices if the dollar gets stronger, global commodity prices will come under pressure. >> and finally, just wanted to mention this amazing stat from bespoke. the five-week increase in the ten-year yield is the largest in more than a decade what is that going to do to the economy? and are we seeing a peak in yields anytime soon? >> i don't think we're in a peak yet. as you mentioned, we have to price in the ten-year, something like i think 3.25%, 3.5% so back to the highs of 2018, but if you think about what rates do in the economy is housing, it starts to show up there. it will also be in corporate borrowing. ultimately that will slow down as rates are too high, and in

addition, as we get through the fed balance sheet, ultimately, the reserves of balances go down, and with higher rates, then you get consumer credit affected as well so think it's working itself slowly into the economy. but really we're still in the rising rates >> we have also uninverted, importantly, on the two-year/ten-year yield curve. >> as we head to the close, one minute left to go, we're looking at the nasdaq under pressure that's where it's been all week long down 1.4% right now. down about 4% on the week which is amazing considering some of the strength you're seeing in the dow, for instance, which is doing better for the week and the day. losing a little steam as we go into the close the dow has a lot of mega caps and defensive plays that have been working, like a united health care. home depot doing better today. goldman sachs, going into bank earnings next week also going into the cpi report a lot of catalysts coming up take a look at the s&p 500 right now, and it is lower by about

.4%. we lost ground in the last few moments. energy, financials, materials, health care going strong tech and consumer discretionary weighing us down that was the story of the week for the week on the s&p 500, we are down a little more than 1.5% that's going to do it for me on "closing bell. have a great weekend, everyone now i will send it over to dom chu for "overtime. >> so you just heard it, the bell regulation time is done. "overtime" is starting now i'm dominic chu in for scott wapner today you heard the bells. we're just getting started here on the show. and we are going to begin this hour with our talk of the tape a very big breakout in bond yields those interest rates going higher, but it's failing to really wreck the rally substantially. the ten-year treasury note yield hitting the highest level since march of 2019. and stocks held in relatively speaking, the dow finishing in the green, actually. the s&p 500 near the