and food fruit not so bad, but meat prices climbing higher, and of course, grain. >> kristina, thank you >> thanks, everybody for watching "power lunch. we're going to get out of here and hand it over to sara, a few seconds early. how about that she's ready, i'm sure. >> "closing bell" starts right now. >> thank you, tyler and kelly. always ready stocks are in the red. nasdaq is falling hard, down 1.5% the most important hour of trading starts right now welcome, everyone, to "closing bell." i'm sara eisen here's where we start the week holiday shortened trading week, down 200 on the dow. not too far off the lows the s&p down about 1%. the nasdaq down even harder, down 1.5%, and small caps hanging in there this comes off a down week the only sectors positive are industrials and materials. energy is the weakest link, as oil prices slide further below $100 a barrel. and check out mega cap tech names, something to watch into the close. the faangs are all lower microsoft, we're inclugd that in

faang, down more than 3% currently the worst performer in the dow. that's why the tech heavy index is weighing on the overall stock market remember, the nasdaq composite was down 4% last week. so we're adding to those declines and it's all about higher interest rates. the ten-year yield going to 2.75 first time since 2019. we have great lineup to help you navigate the market volatility, including tom lee, kyle bass, mark mobius. plus, we will talk to former twitter board member mike mccue about elon musk's decision to now not join that company's board. let's get to inmarket as stocks fall to start the week after the major averages all logged losses last week. joining us is tom lee, and tom, just remind us of your position. you're not wildly bullish, but you are more bullish than the average cnbc guest that we have on lately on stocks, right >> yeah, that's correct. i think the street and our institutional investor clients have become outright bearish

for understandable reasons, because there's headwinds, and i think the one key difference we have is we think a lot of bad news is priced in. and while the risks of recession are really elevated, i think there's some leading indicators that are telling us that in some ways some of the worst of the inflation is behind us and then if that's true, the fed doesn't have to be potentially as aggressive as futures markets are pricing. >> and yet yields continue to go up i mentioned 2.75 on the ten-we're. if what you're saying is true, wouldn't we need that to stop for the nasdaq and the technology to work >> actually, i would say if the long end was actually falling, i think that would point to elevated risk of recession so the fact that long end rates are rising and the yield curve steepening in some ways is showing us that the narrative is probably shifting towards a growth scare but that we're going to emerge out of this

period, i don't know when we get clarity, and if that's the case, even at 3% ten year, even though it's higher than where it was two years ago, you're paying a 33 pe to own a ten-year bond, so i think a 16 pe s&p 500 is still a pretty attractive relative value. >> i guess my point is as you continue to see rising rates and rising treasury yields, you're going to have people worrying about valuations, especially on tech stocks which are discounted into the future, and megy cap tech, which i think is one of your favorite areas of the market, is under a lot of pressure today >> that's right. you know, for the really for the past year and a half, we have been more on the energy overweight and we think it's been in the underowned camp, but if we can avoid a recession scare and not have a recession, which is again, our base case, we think from today going forward over the next six to nine months, large cap tech, faang, are going to really look

attractive because number one, if you're worried about growth, these companies can grow faster than gdp their multiples have come in, and i think that from a margin perspective, they're less vulnerable to some of the sort of supply chain and inflationary pressures of labor that are hurting other companies. so i think they haven't been great, but we think in the next six to nine months they could actually be relative outperformers. >> so it sounds like the whole view is predicated on the idea that inflation has peaked or is peaking and will come down materially do you think the street is just too worried about more long lasting higher levels of inflation and what that's going to have to mean for the fed? >> yes i mean, we are in a really uncertain transition because we are -- the economy is in the middle of a pretty big inflation surge, and now there's supply disruptions associated with the war, and now we have a tight labor market and a fed that's become quite hawkish so i understand why investors are nervous and why everyone has dialed down their constructive

views. and i think one of the things we have to keep in mind is that the market is doing a lot of work for the fed. you know, as you point out, rates have already risen when we look at wealth effect, if you look at the four largest holdings for u.s. households, they're down between 8% and 15%, that's about $15 trillion of lost household equity. we're seeing gasoline higher prices affect credit card spending data. i think in some waisss the fed who is talking tough, the market is already doing a lot of work for the fed. if that's true, we could be a little half full, meaning the fed may not have to do nine hikes this year. >> so would you buy the cyclical groups as well, tom, that have really corrected on this notion that the economy is going to slow down, everything from autos to airlines to transports? or would you stick with the just big tech >> our recommended strategy is beef, which is bitcoin and

bitcoin equities, energy and resources, which has been a standout, and faang, which is large cap tech i think the cyclicals have gotten pretty reasonably priced because they have been under pressure, a lot of them, for more than a year now, and if the supply chain issues are easing and once china gets through the zero covid lockdown, which we're not there yet, it is a case for a growth resilience coming i think in the first half, it's still a treacherous period i just would caution any of the viewers not to get too structural bearish because at the moment, consensus thinks we're going to have a recession. in fact, we did a twitter survey, and i think 53% thought the market was going to be down 10% or crash over the next six months so - >> we did just see the yield curve invert i know it's uninverted, but that is a classic tell. >> yes, you don't want to ignore the sign from an inverted yield curve. it shows you there's stress, whether it's building in the

credit markets or future credit tightening or economic weakness, it's something we have to respect. fortunately, there curve is steepening again so it's a short lived growth scare hopefully. >> tom lee, we thank you for coming on and sharing your perspective. a little different tom lee. after the break, musk declines to take a seat the world's richest man changing his tune on twitter, deciding not to join the board after he became the company's largest shareholder last week. up next, we'll speak witfoerr wd its shareholders you're watching "closing bell. we're down 251 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.

welcome back check out today's stealth mover. surging as much as 200% in the session. the drug maker say phase three trials of its oral covid-19 treatment showed a, quote, significant 55% reduction in deaths from moderate to severe hospitalized patients. the company plans to meet with the fda to discuss emergency use authorization, and just like that, a billion dollar company was born >> let's turn to the big corporate drama of the day elon musk, again, this time no longer joining twitter's board musk's appointment was supposed to become official this past saturday, but according to the ceo, musk declines to join that same morning twitter slid on the back of the announcement but has since recovered and is actually now outperforming the market joining us, mike mccue, former twitter board member and julia

boorstin who covers the company. mike, i know you haven't been on the twitter board for about ten years or so. as a former insider here, i'm curious how you perceive musk's move now to not join the board and whether that's worse for twitter? >> well, thanks for having me, sara you know, i would say that this is still a great thing for twitter. you know, i mean, having your largest shareholder be one of your very best users, that's a very healthy thing it's a great thing for twitter still. whether he's on the board or not, he's still going to have just as much of an impact on both twitter as well as the product. >> that's a great thing for twitter, julia what do you think? his tweets are not so friendly about twitter. >> well, look, i think we have to acknowledge something that the ceo said in the tweet when he announced the news that musk was not joining the board, that they have to be aware of distractions and have to keep

working despite those many distractions there is no doubt what is going on right now is a major distraction, not only for the people working at the company but also potential for investors. you have to look at this company as one that has undergone so many changes they have lost the ceo of jack dorsey they have this new ceo who investors are unfamiliar with, and they have a company that's trying to dramatically diversify its revenue streams and expand not only adding more users but also adding different ways to make money so there's a lot going on right now. it's already battled with elliott as an activist investor and now they're looking at another potential activist investor in elon musk who is in his tweets kind of directing the conversation about the company right now. i think there is a major risk of distraction. >> mike, what is the problem at twitter? because in some ways it's facing the same issues it did back when you were on the board, which is an issue of monetization and growing users. what is the issue there? >> well, you know, i think it's

important to put things in perspective. i completely agree with julia. the point about avoiding distractions is very important and it's always been the case at twitter. there is always somebody around who thinks stla a great idea for what twitter should do next. twitter is able to roll with that i think that twitter is more relevant now than it has been in a year ago or ten years ago. elon tweeted out that, hey, justin bieber hasn't tweeted anything recently. is twitter dead? actually, i think right now, it's a great signal that people turn to twitter every single day to find out what's going on in ukraine. zelenskyy is tweeting while he's being attacked that's fundamentally better than it was just ten years ago. when justin bieber was the thing people were coming to twitter for. so i think as long as twitter stays focused on the fundamentals, continues to become this quality place where

people can find out what's going on right now, people are conversing in this town square in a healthy, vibrant, non-toxic way, then i think twitter is going to be in great shape and will continue to grow. >> it's not healthy, it's very toxic. i don't know what the third thing you said is, but there's a lot of negativity and trolls and fake users and everything. but i actually wanted to get your thoughts specifically on jack dorsey and what his -- where this puts him right he foe board. and an elon musk fan is heeg going to come in betwee the ceo and the company's now largest shareholder? >> well, you know, i don't know what jack and elon are talking about. jack is very first principles based guy. he's trying to create this town square to talk i think he's done a lot of great work to reduce the trolls and talkic toxicity, but that is th threat to twitter or any

platform like twitter, trolls and toxicity that's where there's going to need to be continued focus by twitter on making sure that that environment for those conversations is a healthy one and that means that sometimes people are going to get kicked off of twitter, and that's a good thing, that's an okay thing. so i think it's really important that the company stays focused on its core mission and continues to execute independent of all of the drama swirling around it, which there's always drama swirling around twitter. >> new distraction so julia, would this company be better off in private hands. a lot of people are wondering if elon musk would just take it over because he's not committed to the cap of shares he can own. does that solve anything what are you hearing >> it depends what the outcome is there is speculation now that now that elon musk can buy as many shares as he wants, he's no longer capped at 14.9%, he could

either team up with a private equity partner or he could really force the sale or take private this company i think what really distinguishes twitter from the likes of a facebook or a snap is the fact that it is not a controlled company you do not have a founder in charge who controls enough shares to determine what happens with the company i do think there will be a lot of speculation about whether we could see a sale of the company and we're going to be closely watching just how many shares elon musk buys and whether or not he teams up with any like-minded players we cannot forget what eljt did in term of putting pressure and forcing change at this company >> but activist investors usually want to join the board. that's why this is so strange. we have to leave it there. mike and julia, thank you. twitter shares up more than 3%, outperforming all of tech, up 23.5% for the month so far let's show you what's happening with the broader market because we're in sell-off mode and those losses are picking up steam into

the close. down 265 on the dow. s&p down 1.25% right now the only sector that remains in positive territory, industrials. materials and financials just went red energy is the biggest loser. technology also down 2%. coming up, much more on the rough start to the week when we're joined by kyle bass. and then after the break, nvidia shares are slumping today. now down 20% in just the past week mike santoli will be here to look at throng term levels to watch and the street's sentiment in today's dashboard we'll be right back. 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.

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take a look at nvidia, prunjing today after getting a d downgrade from baird to neutral. cancellations for nvidia's graphic processing units are beginning to pick up, driven by a slowdown in consumer demand. mike santoli with a closer look at nvidia for his dashboard today, which has been hit hard lately >> it has. in fact, the downgrade is riding along on this pullback, down by more than a third, but this

chart shows over the last five years just how important nvidia has been as a contributor to the semi-conductors performance. it's still above half a trillion in market cap, even down 40% from its peak. amd, that stock looks almost exactly like nvidia here those two stocks really spaunl for almost all of the upside in the group, and they're both together about 15% of the sector, or at least of this etf. take a look at how the street is set up, even after the downgrade today. more than 80% of analysts still recommending the stock what i would also point out is the target price well above $300, around $320, shows about 50% upside to the current price. that's usually kind of a vulnerable to downgrade. it shows you the target prices have not really adjusted to where the stock has gone again, we're handed back some of the massive performance of nvidia here's where the valuation sets up, like an awful lot of growth names. what's gone on is it's about 40 times forward earnings and it's

essentially given back some of the extra premium it had built up through the pandemic. that takes you back to the pandemic this is where the rest of semis trade. there's intel, qualcomm, there's br broadcom, micron and it's amd and nvidia that are the risk appetite leaders. we'll see where they settle out. it seems like the street is slowly trying to adjust the targets. >> they're the growthiest of the growth >> still 25% earnings growth, maybe 18% next year. you could argue it's worth this multiple >> that's what i was going to ask. the earnings season is coming up and the setup suggests if they really are growing at those levels it's maybe a good buy >> as long as they don't show this sort of real downshift in consumer demand. if the big picture story does not really have any holes in it when they report >> mike, thank you >> up next, kyle bass on whether he thinks a recession is on the horizon and how to protect your portfolio in this volatile environment. we'll be right back.

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session lows, dow is down now 300 points or so the nasdaq getting hit as the hardest as the tech heavy index down about 1.8%. tech also weighing on the s&p 500 which is down 1.4% every sector is red except for

industrials. energy and tech at the bottom of the pile weakening into the close as we keep an eye on rates, which continue to move higher. and fears of recession are making their way through wall street as well economists say there's a 25% chance of recession this year. rising to a 40% chance over the next 24 months that's according to a new poll from reuters let's bring in kyle bass kyle, how do you think the market is processing all of these shocks and tightening risks, and where do you think it goes >> you know, sara, i don't believe that we're going to be able to see the tightening cycle that i think is being telegraphed by the fed i think that when you look at the amount of on balance sheet obligations we have as a sovereign and in a corporate sector, i don't think that the delta or the rate of change from the lows to where people, let's say wall street economists are saying the neutral rate is, i don't think we get there as you have already seen, the forward market has already priced this in and we already

have an inverted curve i think that the chance of a shallow recession for the u.s. in the next 12 months is pretty high but i don't expect it to be too deep given all of the inputs today. >> then would you be a buyer of stocks on that view? >> you know, i think not yet i think that you're going to see things going from bad to worse in ukraine with putin, and i think you're going to see china move on taiwan or invade taiwan in the next 18 months. i would just sit on the sidelines for a while or, you know, i guess if what i'm looking to do is protect my portfolio, i sell all the chinese stocks if i was institutionally allocated, i would remove all of my investments from china. but putin just taught us that entire countries should be avoided if they're being run by despotic autocrats >> but that's not new for you. you felt that way for a long time, and you have even bet against china in your years in hedge fund world, right?

against the currency, against the hong kong ollar. you had this view for a really long time. some people think china is appealing now because it's going to have to ease a lot given it's dealing with the covid lockdown. >> i bet the same person were long russia before the invasion. the global norms and some peoples of the world were institutionally allocated regardless of the underlying factors of each investment i would say if everyone institutional investors' investments just got taken to zero, now they're on the knife's edge with china. while i had that view for a long time, i think that in the end, we're going to end up being right about this >> you think that the u.s. will go through sanctions in a way that it has done for russia with china if it invades taiwan it's a much bigger economy, we're much closer linked it seemed a lot more complicated to do. >> yeah, i kind of -- i don't think that the size of the

economy dictates the response for let's say a merciless killing in another country so yes, i think that the unthinkable has become at least a mainstream thought, and if you're a fiduciary, you better be worried about your allocation, given all of the inputs today i think it's indefensible to be long anything in china >> we didn't even do secondary sanctions on china for dealing with russia and still buying its oil and protecting its financial system essentially >> yeah, you're right. i mean, every day we don't sanction russia's energy sector, we give putin at least $800 million a day, so the west continues to fund the russian killing machine, and at some point in time, wall street is going to at least put its greed aside and realize that there are better national security decisions to be made, and maybe that requires leadership at the

top of the west, but i think at some point in time, we have got to cut the blood flow off to the tumor. >> so you hate china and as a portfolio, you want it out of the portfolio i also wanted to ask you about another one of your areas of expertise, actually where you took your stark turn, during the financial crisis, betting against the mortgage, right, all of the subprime mortgages. and you made a lot of money and you called it correctly ahead of everyone else, the housing crash. i wonder if you see something that rhymes here affordability rates are going very much the wrong way. mortgage rates are back above 5% prices are skyrocketing. i know supply is a little different than it was back then, but i'm curious where you see parallels? >> i think there are a few things that are similar, but i don't think the same crisis is out there. i think that you made the comment about supply i think this is basically an asset -- this is an asset price

surge that's generated by kind of the fed taking its balance sheet from $4.5 trillion to almost $9 trillion we basically printed 40% more money than was in the system two years ago. we all know prices have proved up a lot more than the cpi says they have, if you know in your own life, so i think that this lack of affordability is going to change many of the dynamics in the u.s. as far as population growth, birth rate, things like that, that china has seen let's say far ahead of what the u.s. has seen but what i think here is we're going to have -- i think we'll have a shallow recession again, given all the inputs today and europe is going to have a deeper recession, and again, i think china is uninvestable i leave my money in the u.s. today. >> got it. we appreciate the perspective. thank you for joining me >> thanks. >> as always here's where we stand in the

markets heading into the close still looking at a big sell-off in the market, down 367, it's only picked up speed s&p down 1.5%, and the nasdaq approaching a 2% decline on top of the nasdaq's 4% decline last week small caps also join the sell-off marco colon avich issuing a bullish call on emerging markets. mark mobius on the two parts of the world he think will outperform [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.

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we want to extend a big welcome to the newest member of the closing bell family. our producer laura given birth to a beautiful baby girl friday evening. the name brooke melanie hinchey. big congratulations to laura and her husband michael who apparently made it to the hospital just in time. brooke was in a bug rush to meet everybody. came out fast. and perhaps most excited by brooke's arrival is big brother james. so sweet and of course, we're all excited to meet her one day as well. laura usually produces this segment of the show, so hopefully she's watching now laura, we miss you congratulations. love you and see you soon. >> when we come back, banks out performing the broader market ahead of this week's earnings. up next, a top analyst on which names investors should be betting on ahead of results. check out some of today's top searches tickers ten-year yield on top. surging again, presenting a headwind to stocks right now dow is down 375.

also in the top five, at&t, which is surging post spin-off of the media assets. twitter, which is outperforming. nvidia, and tesla. and coming in at number six is warner brothers discovery. dipping lower in the first day of trading following the merger 'll rhtaconedia giants. webeig bk "closing bell." not a security concern around for 50 miles. unless you count the wolves. and all the llama milk you can drink. you know at cdw, we can design a security solution using hp elite devices with real-time threat intelligence to help protect your data from new threats, anywhere you work. anywhere? ring the bell thrice, we're going back to the office! for technology that moves you forward, trust hp and it orchestration by cdw. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq,

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well, would you look at that? jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon! ugh. unbelievable. . near the lows of the day, we're now in the "closing bell" market zone. mike santoli here as always to break down these crucial moments of the trading day, plus mark mobius is here on which emerging

market he's most bullish on right now, and laura on tesla which is falling hard today. overall, stocks are selling off into the close, and we're near session lows the nasdaq down 2% or so, mike higher interest rates, is that the prevailing why we're seeing such a sharp decline that's deteriorated through this hour >> newhighs in the long end of the treasury curve definitely a pressure point that's been for a while. an apprehension ahead of tomorrow's inflation data related to the yield move, and in this case, i feel like the s&p 500 did not do enough to sort of prove that it got escape velocity, now we're at another short term make or break level as we speak, the index breaking the 50-day average that being said, for a day when the nasdaq 100 is down 2%, semis are down around 2%, the energy sector down 2%, the average stock is kind of hanging in there. so this is one of those days where under the surface, it's slightly less negative than at the index level, but if you

trade in the s&p, maybe it doesn't help much. >> i think we should hit oil because it's below $95 for wti brent is below $100, energy stocks as you say are lower. china appears to be a big factor here a slowdown continuing to be priced in as the shanghai cases go up. the indefinite lockdown, what it's going to do to the economy, does it ripple over to u.s. stocks >> that is what is rippling over, a little into the energy stocks all these reports of oil sitting idle on ships off of china, and all that type of thing is definitely weighing on sentiment for the commodity. what's interesting about the stocks is they never got the full upside benefit of the russian crude to the recent highs. so maybe there's a little more firmness under the surface in the stocks with a little pullback here. but yeah, i do think the general story of potential slowdown and disruption in china and this idea that it's going to be maybe one thing that gets pulled out of the bull case, i see that,

although on the other hand, you're talking about maybe that's the one area of the market where there's easing of policy happening again, today, tesla down, microsoft down, on some analyst calls or some company specific events as well as the nvidia downgrade. to me, that's the bigger weight than it is a macro story >> sure, tesla, microsoft, nvidia, so heavy in the major averages all getting hit 4%, 5% emerging markets to that point have outperformed -- underperformed the u.s. so far in 2022. jpmorgan's market strategist says it's time to switch focus away from u.s. stocks and toward em, citing the expectation china will be easing monetary policy as soon as this month while the use is raising interest rates. joining us is emerging markets investor mark mobius, founding partner at mobius partners always good to have you here is it bullish or bearish what's happening in china because they're going to have to ease to fight the slowdown or the

uncertainty over how long it lasts? >> i would say it's generally speaking, it's bullish because they're determined to push the market up. as you know, some of the high government officials have made positive comments about the market, and that's usually a big signal for other investors in china to come in but more importantly, they're pushing interest rates down in order to support the economy so i would say we're in a relatively bullish situation, but there's so many other factors that are weighing on the market, such as the crackdown on the large cap stocks you know, the big tech stocks. and also the whole situation about fears with russia, collaboration of chinese and russian arms controls so i think those are other things that are weighing on the market that's going to be a problem. >> yeah, we saw 3% declines in chinese stocks overnight, and hong kong as well. mark what about what we just heard from kyle bass who thinks

there's a geopolitical risk for investors if they own chinese stocks or china exposure because if china invades taiwan in the next 18 months as he says, and he's granted a longtime china hawk, that could be dangerous given what we have just seen play out in russia >> i think kyle has very good point, from a long-term point of view, if china continues to move towards a more authoritarian state, it's very difficult to justify putting a lot of money into the market, but that may not happen the situation we see now may change but very important is taiwan, of course i don't see china invading taiwan within the next year or so but of course, anything can happen but i just don't see that happening because you have got taiwan being very, very important to the u.s., to japan, to korea, and so it's very, very difficult to justify that happening. >> should you be switching out of the u.s. and into emerging

markets, mark? given the underperformance so far in emerging markets this year, do you see anything changing there >> i wouldn't switch out of u.s. stocks that have a global footprint, particularly in emerging markets because a lot of u.s. stocks that could be considering emerging market stocks because of the big sales they have in places like india, china, south africa, south america and so forth, but i would say the most important areas which are interesting to us at least are brazil, india, and taiwan those are the three areas that have the best bargains as far as we're concerned and have the best prospects of growth >> brazil, india, and taiwan india, even though it's an energy importer and it gets hurt by these high oil prices >> let's remember, the largest part of the indian energy market is coal. unfortunately. polluting coal, but that's about

70%, 80% of their power. so they're not that dependent upon imported oil. it's important but nat that important. >> mark mobius, always good to check in with you and get your thoughts thank you for joining me >> thank you in the market zone today shares of tesla under pressure after the chinese electric vehicle maker neo warned over the weekend that it is suspending production because covid restrictions in china are hurting its supply chain nio also raising prices for suvs because of soaring raw material costs. that news spooking tesla investor since the company generates a lot of revenue from china, makes a lot of cars there. laura joins us now how seriously are the covid restrictions impacting esla? >> thanks for having me. really appreciate it well, tesla's production in shanghai has been suspended for 14 days and counting jl warren capital had a base case of another couple week of these kind of restrictive covid

measures in the area, and on top of that, you know, this could have sort of ripple effects throughout tesla's business because in some cases, you know, if one factory like in fremont, california, is missing parts and they need hem, they could have them shipped from shanghai we have yet to see exactly what the impact will be we know it's serious last year, about half of tesla's production of electric vehicles came out of china. >> so clearly a big impact there. do you think it's something the street appreciates or understands given some of the notes that you have seen lately? >> i think the understanding is becoming clearer as more news comes from shanghai we're seeing people hollering out of their windows, you know, waiting for permission to get out and get groceries. it's pretty hard to ignore at this point >> do you think that he's serious that he's going to get into the mining business, elon, when it comes to the scarcity of some of the raw materials like lithium? >> i have no reason to doubt that he wants to

but even if tesla embarks on, you know, getting deeper into the extractive industries chain than it has tried to be already, it's going to take four or five years before it makes a difference to their supply they do like to be as vertically integrated as possible, but it's not always possible. >> laura, good to check in with you. tesla's down almost 5% right now. >> nasdaq down about 2%, as we go into the close. nine minutes to go one tech name in the green is twitter. speaking of tesla. shares recovering after its ceo announced that elon musk will no longer be joining the board after becoming its top shareholder. joining us, brent thel you weren't that exciting about elon joining the board, not excited about twirtd i would guess you're not that excited about the company now that he's not joining the board, although maybe you think an activist investor is what's needed >> i think it's great for investors he's not on the board.

when you look at the last weekend, he tweeted over 20 times about twitter and converting their headquarters to a homeless shelter in san francisco. i mean, some of this can be distracting and overwhelming for a board. and it's probably, you know, not what you would want for a board member to do soultimately now you have a situation where he can bring the stake higher we don't know if he will, but we think he could bring a stake higher and secondary, he can can voice his opinion and there's a lot of great things he's saying that they should do i don't think they should convert the headquarters, but you know, when you look at ultimately what he can say and help provide that influence, i think that's a positive sign and that's why the stock is up i think investors are perceiving this to be more positive that he's in his position than actually an active board member. >> it was up even more last week brent, last week was one of the best weeks in history for twitter when he was supposedly joining the board. >> well, i think the stock moved on mainly on his investment.

it didn't move on his board seat so it moved after that, and it obviously helped, but i think this investment obviously helped catalyze the shares. so i think, look, in my opinion, i think it's better to have him outside the board room for a lot of reasons and ultimately, i think they're going to make the right decision as a team with him involved. and look, you have a new ceo in. there's calls for change i mentioned this last week the advertisers we speak with have seen little innovation in twitter in the last decade so when you see the innovation happening at snap and other platforms we cover, they have to pick up the pace and ultimately i think what he's saying is you have to pick up the pace let's get going. and they're capable of doing more i think it's a good outcome, and you know, again, i think we haven't seen it fundamentally yet. this is all alk, all about the future being planned, nothing to do with the current state of business >> well, to that point, mike,

just what is being priced in here how do you look at the new rerating for twitter >> it's difficult really to parse it out because first of all, this is a stock that traded in the last two years as high as $77 and as low as $25 pre-elon musk investment. at the eve of us knowing about the investment, it was just under $40. this kind of moves based on is twitter going in the right direction or wrong direction on user growth and monetization it's been the long term story for twitter. there's a wide range of outcomes one being he's going to be a self-interested gadfly wanted to pressure the company yes, he has a 9% stake, but does he care if he maximizes shareholder value of that? i'm not sure about that. getting him on the board, the upside case for that seemed to be one of those keep your friends close and your enemies closer he might have been constrained on the board and he couldn't buy that much. and now that's gone. so it's very difficult to say exactly what people are

thinking, sort of the wisdom of the move on this except as i said this stock has traded way above and way below this, even absent his influence >> we have to leave it there we have a big sell-off there thank you, brent assee see the dow down 432 points it's been an ugly final hour of trading here microsoft is the biggest weight taking 76 points off the dow united health which has been a star lately taking 57 points only four dow stocks remain positive travelers, verizon, 3m, and dow, so even some of the safe defensive names are getting thrown out today we're talking about staples and health care that had been outperforming. everything is lower, every sector in the s&p. coming up next hour on "overtime," don't miss walter isaacson who is writing a biography on elon musk, has some insight into perhaps musk's thinking on twitter. >> now that we are looking ahead to bank earning season, let's talk about winners and losers because that kicks off tomorrow. there's the kbw bank index it's been losing steam

broadly outperforming the market on the back of higher treasury yields today ken leon joins us now. what do we need to know heading into bank results? the setup and what are you looking to hear? >> that's right. and there's a wall right now, a real debate whether the fed actions with higher rates but also quantitative easing, the quantitative tightening, does that hurt the economy before the banks enjoy the ride of the steepening yield curve that means for banks, higher net interest income and higher earnings before you can go to the factors of the bull case for bank stocks which could still go up so much, you have to ask the question, whether in the second half of this year or next year are we going into recession or any level of stagflation that hurts the consumer that is top of mind, i think, what we want to hear from bank managements this week and what analysts are thinking. >> having said that, with that sort of big wild card out there,

what do you make of valuations where do you think the biggest opportunities are? which names? >> we think the opportunities are still more the traditional banking area and that would be bank of america and wells fargo for the larger banks for the regional banks, pnc and truest are names we like unfortunately for names we still have buys like goldman sachs or morgan stanley, capital markets as we all know is going to be down significantly in the first quarter year over year and unless we have any change in the geopolitical climate, it's unlikely that we're going to see that pipeline of investment banking really hit and take off in the second quarter. so i think the practical place to go is more the traditional banks. you know, wells fargo and bank of america, these are enormous machines of generating higher net interest income, and part of that is higher loan volume

>> what do you expect, very quickly, ken, to hear on capital markets? is there any sign things could turn we know ipos have fallen off a cliff, m&a is down it's been a tough start to the year what will you be listening for on that front? >> well, first of all, i think some of these banks might have some one-time gains from private equity investments but when you look at equity underwriting and m&a, there's going to be confidence for the outlook for doing transactions but as we have seen the announce to close transactions has come down steeply from a great year, unfortunately, that was 2021 >> ken leon, we'll leave it there, thank you less than two minutes to go in the trading day. a deterioration all hour long. down 422 on the dow. what do you see? >> they're weak but not as weak as the indexes might give you the idea here. you have 2.1 billion shareoffs declining vomume, but 1.5

billion advancing volume that's been the story, mega cap weakness today along with energy, in fact, take a look at the equal weighted s&p today relative to the market s&p you see massive outperformance of the equal weighted basket by .75% today the volatility index popping back up above 24 it's still in this uptrend, well short of the macro panic levels and arguably is underreacting to the magnitude of the index losses because we have been here before so recently, and there's a lot of divergence below the service. >> two-year yield, 2.77, and that's been a headwind for big cap technology you're seeing sell-offs in some of the popular big names than weigh on the indexes like mike just said, microsoft, apple, tesla, nvidia, amazon, alphabet, facebook all lower today as far as what is holding up a little better, industrials and materials i guess are the best performers in the s&p, although everything is down right now

the sectors getting hit the hardest, energy with oil, wti back below $95 a barrel. and technology hit very hard, including the chips, the software names, nvidia and microsoft at the bottom of that pile small caps also joining in the sell-off, down .75%, and the s&p goes out with a decline of 1.7%. that does it for me on "closing bell." now i'll send it into "overtime" with scott wapner. >> all right, sara, thanks so much welcome to "overtime." you just heard the bells we're just getting started right here at post 9 we begin with our talk of the tape, the biggest question for investors right now at yet another day in the red led mostly by tech, which has gotten slammed lately. does it mean the worst is still yet to come or is the end of the selling getting any closer let's ask adam parker. look, risk feels bad today, right? tesla, beaten up bitcoin beaten up. tech beaten up whenoe