on the platform. not just nfts. all the different things that can happen. >> i here hip-hop's snoop dogg bought a virtual plot and a fan paid to be next door to them feels to me like a virtual zero. 30% of something worth nothing i don't get it that's for another time. julia, thank you. and thank you for watching "power lunch." >> "closing bell," right now. stocks are at session highs here after yesterday's downward reversal with nasdaq jumping nearly 2%. most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen where we stand in the market up 280 on the dow. breaking a three-day losing streect. s&p up a firm 1% at the moment working? most of higher technology, losing sector.

energy up. materials. only two in the red financials and utilities. look at consumer discretionary highlight this into the close. by far top performing sector today. travel stocks helping the group a lot. marriott, norwegian, caesars, hilton, sharply higher positive comments and earnings out of delta certainly fueling a lot of optimism in that sector. a big interview coming up you won't want to miss fed governor christopher waller joining us exclusively in a few minutes to talk about inflation, fed policy, the economy, and much more onthe back of two back-to-back very hot inflation reports. get to our top story today bank earnings. jpmorgan reporting profit dexlin in first quarter earnings this morning. decline driven by increased cost for bad loans and impact from the war in ukraine stock down 3.4%. bank sector taking a hit on the back of those earnings results tomorrow more earnings from citi, goldman sachs, morgan stanley and wells fargo. joining us now, david ellison,

and from capital markets, another guest as well. seeing reaction in jpm shares deteriorate what are you hearing? what are biggest concerns? >> sara, i think number one issue here with jpmorgan chase is their capital levels. as you saw there, cet-1 ratio, common equity, regulatory capital ratio fell to about 11.9% from 13.1% the reason it fell, they had to mark down securities and available for sale portfolio and also increased risks in trading and counterparting losses. i think that's a real issue for many investors, because they announced authorization for $30 billion share buyback but may be limited bawd of where the capital is today. >> the question, how much bad news is already in the stock down now almost 20% from the lows what do you do are you a buyer?

>> yep we would say for long-term investors, absolutely. this is going to about real choppy year for companies like jpmorgan chase with their global footprint. prefer regional banks without exposure overseas jpmorgan has and banks without big capital arguments exposure fifththird or comerica is way to play expectation the fed's going to raise rates this year, spreads it wide accordingly. >> do you agree, david you run a financial the portfolio. hard to digest that tone from jamey diamond, optimistic in short term not so much, cautious? buildup in reserves. what do you do >> first off, hello. known his many years good to see you. i went through -- >> hi, david. >> glad i could bring you guys together. >> thanks, sara. facebook thing here. but i looked at it this morning

and thought they were okay thought about it there's nothing really exciting here in these numbers. i don't see what's going to drive earnings substantially higher rates go higher may have credit problems rates lower, no growth low growth, is it really that good look at their cost of funds, what 22, 23 basis points. you know, i think you -- that seems likethat's going to go up may go up fast or faster than yields on assets, given it's so low. all banks kind nf that boat now. a way of saying this is -- i would like to see credit cycle where i'm going to make money. hoping to god it happens before i have to retire you don't maken in here in these stocks until something goes wrong. i think gerard picks up the capital issue, credit issues we need a credit issue to drive stocks lower to make money from

here stock's $180 stock buyback doesn't help the book bagging's trading 11, 12 times earnings, depending what wall street puts on earnings rest of the year okay not great. not a lot of growth. need a credit cycle. stocking go lower, maybe. >> question from here what does this mean for the other banks set to jort there were positive surprises. trading revenues better. could be good for morgan stanley or goldman sachs counter david's doom and gloom, exciting thing for banks, raising interest rates and good for profit margins what do you expect from the group? >> sure. no, sara, david touched on important parts. i highlight that the cni loan growth, look at loans for jpmorgan chase, ex-cluesing the ppp loans, government guaranteed loans the government gave out during the pandemic. loan growth actually decent for

jpmorgan again, regional commercial lenders we expect to see loan growth driven by inventory replenishment as well as capital market, or capital expenditures. in terms of the capital market, you're right, sara trading was better should anticipate to see some better maybe trading numbers tomorrow also i say to david's point about cost of funds. the big banks may see higher cost of funds. when you look at regional banks with core deposits grandmother and grandfather accounts we don't see them raising rates quickly, because too many deposits loan to deposit ratio for the industry is very low today we think initially the first 100 basis points of fed fund tightening falls right to the bottom line for many regional banks. not forced to raise their deposit rates at this time >> a number of them are higher today. got strength in first republican bank, for instance schwab, brokers high perp not all financials lower but the

biggest loser in terms of s&p now. thanks to you both good to have you both on. >> take care. >> thanks. retear stocks surging today. names like gap and pvh adding to solid gains on the week so far falk to mastercard's chief u.s. economist what she sees in terms of consumer spending later, do not miss our exclusive interview with christopher waller you're watching "closing bell" on cnbc. dow's up more than 290 points. what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected.

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today e is stealth mover, actually two today both in the pharma space jumping after agreed to be bought by holozyme and another acquired by glox oh smithkline nearly $2 billion biotech up more than 2%. deals bringing it back to life check out retailers today. gap, pbh, american eagle, victoria's secret jumping ahead of tomorrow's big retail sales day. bring in a chief economist for mastercard economics institute welcome, michelle. first interview since joining mast mastercard great to have you. tell us, with the new data you're seeing, what's going on with the consumer? >> great to be here and able to represent mastercard's economic institute. as you noted, we have an

incredible resource here in terms of being able to drive some pretty distinct and unique insights we're seeing from the mastercard spending poll status is that the consumer is still out spending the latest data has shown, of course, more certain necessities, and reflects inflation impulse spending at the gas station and on food. also very much spending on experiences. airline travel, lodging, restaurants. even still durable goods the data we're looking at very much suggests consumer is still plugging along. >> and nothing in terms of trade-offs trading higher airline tickets for apparel, that sort of thing? >> that's the key question we're keenly focused to see if we start to see wallet shifts. signs of stress where consumers are spending more on necessities and they're more expensive mean having to cut back on more

discretionary items. it's not apparent yet in the data i think that speaks to the strong fundamentals of the consumer right? you have low debt ratios strong labor market with a very low unemployment rate and a lot of job opportunities as data shows. also pretty good buffer in terns of savings that seems to be allowing the consumer to manage through this time at least for the time being. >> so how do we know what's coming because as you know, there is pessimism crept in xrt, retail etf enteringing back in the last week, way down since november and all the groups working instead are defensive. like consumer staples. what's the forecast based on data you have? >> look, i think it's very much going to be a function of the persistence of this inflation shock. how long do we see commodity prices at these high levels? how long do we see this increase in inflation, broadness of inflation?

because consumers can't withstand this indefinitely, of course at some point you will start to see those the stress kick in and likely see these types of wallets shift. we're could not being to really focus on items in the consumer basket that tend to be most you have vulnerable, large purchases, household purchases, vehicles even potentially airfare this time around different for airfare given there's a lot of pent-up demand to go out and travel. >> session highs up 329 or so. on the dow michelle, when you hear wall street talk about recession, now deutsche bank says coming in 2023 yield curve invested quite uninverted now how do you square that way data you're showing ing indicating slowdown >> you noted, sara, it's

steepening out i think the market signals shows there's an appreciation for some resilience in the economy. will we see a moderation growth? absolutely the economy grew at an astounding pace last year, because the unique factors related to fiscals monetary stimulus, and rebound coming out of a very deep pull from the pandemic. so moderation growth is to be expected but i think, you know, i think people have been spooked, starting to pull lower recession calls. >> michelle meyer good to have you back on the show, from mastercard economics institute look forward to having you back on. a check on the markets i mentioned at session highs building on gains throughout the hour reversal of what we saw yesterday, a pretty much drop into the close up 330 on the dow. boeing biggest contributor walmart then, american express, microsoft, nike. and travelers ibm and 3m in the

red. nasdaq decline from yesterday. up next, breaking down the market a split performance of s&p 500 constituents and that-of-what that signals about the market's nest move. later, interview with chrrhrrist christopher waller. back in a moment.

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>> announcer: brought to you by -- more than 1% rally for s&p 500. 47% of s&p 500 stocks now currently trading above 200-day

moving average get to mike santoli with a closer look. what does it tell us >> caught in the middle, sara. technical analysts looking at this by the way, coming into today. better now a selective bifurcated market. not in gear the way you might be in the midst or about to set off on a strong advantage. observations recent lows, didn't really have a huge washout as you did, for example, late 2018 and 2020. 20% plus declines inindex. looks a lot like that in 2014. last year so strong. most stock acebove it. reflects the fact offsetting currents in the market commodity related and defensive stocks, very well. cyclicals, weak. the question, have we seen enough seen enough of consolidation for a while right here a lot of folks wait for this to get better to say the market's out of the woods of course, all rallies start

when things don't look as great on this measure. >> watching today, lower. >> quite broad today, yeah. >> broader today exactly. mike thank you. up next, fed governor crist mer christopher waller we'll be right back.

welcome back near session highs a little off up 344 on the dow today's top search tickers on cnbc.com on top of the list yields chultly moving lower. 270 on ten year. buying of treasuries yields moving down despite what was a very strong ppi inflationary this morning tesla, always in the top five. up 3.8% and delta, good quarter as well surging 6% bringing airline and travel and leisure industry high. annal rounding out top five. positive day up 2%. up next we will talk with fed governor christopher waller about the inflation situation in amicand etera whher the fed is doing enough to bring prices down. jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old.

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more big inflation numbers out today. producer price index rising to more than 11% from a year ago after the consumer price index yesterday showed 8.5% gain from a year ago gas prices still above $4 a gallon fed governor christopher waller joins us great to have you. welcome. >> hi, sara. >> how are you reading the inflation data we got this week? >> well, the data was high we knew it would be high it wasn't that surprising. oil, or energy and food was going to drive the headline numbers up we got a little bit of a break on core inflation numbers. came in a little lower than we thought. good news. hopefully can see that continue going forward. inflation, it's very high. we know this is causing a lot of

pain for american households and we're just going to continue on with our plans with rate hikes and reducing accommodation trying to get this back under control. >> you mentioned the core inflation number monthly gain was less than it had been it sparked a whole debate over whether inflation peaked what do you think? >> yeah. that's kind of what i'm forecasting nforecast i ing. that this is pretty much the peak had it in my sep for second half of the year. inflation would start to come back down as rate hikes started to have a bite on the economy in terms of demand putting downward pressure on prices we're already seeing oil prices retreating backfrom where they were from the invasion of ukraine. so i think we might be at the peak and that we'll start seeing relief on this in the next

coming months. it doesn't relieve us of our job to remove accomodation, to get inflation down. >> so on that note, you put out there that you were looking at potential double or 50 basis point hike in may. are you still there and think we'll require more than one 50 basis point hike >> i think data has come in exactly to support that type policy action, if the committee chooses to do so and gives the basis for doing it. i have said before, i prefer front loading approach 50 basis point hike in may would be consistent with that. and possibly more in june and july. >> how many is it going to take to get inflation down? >> well, i think we want to get to above neutral, certainly by later half of this year and need to get closer to neutral as soon as possible. we have talked upgrades. the market rates have gone up quite a bit since december even though we haven't actually

moved the policy rate. all because of our forward guidance to drive up rates it's worked. mortgage rates up almost 200 basis points since december. i think starting to show in the housing market so, anyway, rates are already up but we probably still need to do some more. >> you think housing is slowing? i don't know keep hearing, first of all, prices are through the roof, and concerns they're not going to come down as a result of lower demand, because just not enough supply you're going to get into a stagflationary environment, in sectors of the economy like housing? >> unless people are buying only in cash, at some point higher mortgage rates will have a bite on people's ability to finance a house and how much they can pay. so the -- i think we'll start seeing that in the next coming months downward pressure on housing prices or moderation in housing price increases.

quantity, houses will still sell but prices may not be going up anywhere near in the last two years. >> what about other parts of the economy? where we are experiencing severe inflation and price hikes? what can the fed do about the fact that ukraine isn't going to plant as much this season and russia is basically shut out of the global economy on its important grain and fertilizer and oil exports? at least to the u.s. how do you cope with those pressures? >> yeah. that's the thing we can't really fix these supply chain problems that are out there. all we can do is kind of tryto push down demand for these products and take some pressure off the prices that people have to pay for those products, but we can't produce more wheat. we can't produce for semiconductors, but we can affect the demand for those products in a way that puts pressure and takes some pressure off inflation. >> can you do it without getting us into recession, pressure and

demand with tighter policy >> yeah. i think it's completely feasible we can do that because of the situation that we're in i mean, in the past when the fed had to pull back and tighten, we didn't have situations where there were almost two jobs for every worker out there we weren't staring at shortages when you couldn't get a new car for 12 months. so we're in a situation where we can pull back demand put doneward presh other than prices and not have a big impact on quantity. it's a little special this time compared to what's happened in the past >> but it's also happening at a time where global growth is slowing. europe is feeling it a little worse than we are. i mean, yes, on the plus side, job market's in a great spot, as you say. consumer balance sheets a good spot, but also deceit dealing with a food and energy shock, global growth slowdown seems like a lot to put on the u.s. consumer and the u.s. economy right now as rates are rising rapidly

>> right again, we're trying to do what we can to keep those prices down and from rising as fast as they are. over time, some of the supply shortages were work themselves out. markets work they'll produce stuff and get it to us at some point. right now our main concern is getting these prices down. we can do that without causing a recession. >> some people think you have to shock the market you have to go big and you have to, you know, inflation is becoming worrisome, entrenched the scary word and have to go big to surprise the market you know, put pressure on financial condition and really get inflation under control. is that something you're considering? >> not me. not this central banker. no i don't see any -- >> why >> -- reason trying to shock the markets. we're not in a voelker kind of moment, really voelker and the '70s dealing with really high inflation for six, seven years this really is a one-year

phenomena and we're on it right now. so we don't need to be shocking anything just to cause a shock we're raising rates. the market's understand it come up quite a bit. if this inflation doesn't cool off, we'll keep doing. do what it takes to get inflation back down, but we can do that in an orderly way without causing a lot of market stress. >> sounds like you're not worried about more permanently higher jats the notion this could become entrenched and could see a wage price spiral, which would only worsen? >> the whole point head that off now. right? that's what happened in the '70s let it go six years and then it didn't become -- we're trying to kill it now so we don't have that problem one of the things i am carefully watching kind of what's happening with the firms and their pricing, and wages going forward and how much that is just getting into this kind of wage price spiral. so far, thankfully, from what

i've heard from business contacts, that does not seem to be taking hold >> are you surprised to see how well the consumer's holding up how resilient it's been to some crazy inflation spikes >> yeah. i mean, the thing is, you know, just when you hear news from the banking industry, consumers have a lot of money in their bank accounts. you know, we had a period where there was fiscal stimulus. people have a lot of forced savings and really haven't had a chance to spend yet. so there's still a fair bit of, the money available in people's accounts to maintain the spending that they want and kind of absorb the higher prices. >> so finally, just to round it off, make sure i understand fully your position. are you more worried about the fed being too aggressive when it comes to tightening policy and hurting the economy or not aggressive enough in fighting inflation? which is a bigger risk, in your mind >> i think we'll deal with inflation. we've laid out our plans

we have sufficient rate hikes to get above nueutral get inflation back down. the economy is strong. it's a good time to do kind of aggressive action, because the economy can take it. it would be harder to wait another eight or nine months then say wow, now we really have to get aggressive if we see real slowdown and employment slowdown better to do it now while the economy can take it. that's my view >> like i said, we started talking about it in december rates jumped since december. because we haven't moved often the policy rate. market rates have gone up quite a bit. who where you ten year is. at 140 now 270. >> uh-huh. >> the market's pushed up rates without us moving the policy actually. >> as they tend to do. governor waller, thank you for joining me thanks for your time and that candid answer. >> thank you for having me on.

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♪ ♪ 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. >> announcer: "the market zone" sponsored by -- stocks rising into the close. 350 on the dow in the "closing bell" "market zone." commentator mike santelli breaking down crucial moments and leslie picker, jpmorgan earnings and on the big rally in

airline stocks hit the broader market near session highs heading into the close. standard & poor's and nasdaq on track to snap a three-day losing streak mike, building throughout this final hour comments just now from governor waller of the federal reserve really struck me first of all, very candid and plain spoken about the idea that he's, he's not worried this a a voelker-type moment and inflation is out of control as in the '70s. things can execute on a soft landing and gave convincing arguments. i wonder if that's what the market focusing on, on up days the fact there's a cushion in the economy what's happening with jobs and the consumer heard it from michelle meyer of mastercard no slowdown, to take the higher interest rates and absorb inflationary shocks where when the fed can move aggressively, it has space to do it and won't necessarily sink us into inflation

can the market hang on to that oonchts >> i think the market is in dune with that. the other piece of it, whatever the fed is likely to do has been priced in to, to a large degree over the last few months look at things like the two-year note yield, backing off hard the last week or so. got past the cpi and ppi numbers, really qualify as the two known potentially scary events as relates to what policy's going to mean and whether inflation is really becoming unanchored. we're past that. the equity market did not fall back into that kind of breakdown zone around lows you have a little bit of an upward grind because people got defensive. all of that makes sense. the other piece of it, sara, besides the fact you have, yes, consumer momentum and savings built up, in such a high nominal growth economy now obviously mostly because of inflation. it raetcreates a cushion in tero activity and why the fed feels on a nominal basis, soft landing

is relatively likely even if on the real basis you have retrenchment. >> inflation he believes peaked and should come down next few months and abdicating for aggressive action now. not later. hit the banks. jpmorgan hitting a one-year low despite beating wall street revenue expectations net earnings fell from a year ago. set a$1.5 billion in loan losses jamie dimon warning of down risk side to the economy because of inflation, supply side issues and war in ukraine continuing tomorrow, citi group, wells fargo, goldman sachs, morgan stanley all reporting results. leslie picker joins us what clues could these results give us about what we're about to learn tomorrow? >> i think the market's di digesting results from jpmorgan and extrapolating to the big banks. positive side. saw with trading analysts and investors expecting that to be a wild card for the quarter, but

really only down about 3%. held up relatively nice. fixed income currencies and commodities faring well especially for goldman their shares up about half a percentage point now also fares well for morgan stanley, although more skewed towards equities trading rather than elsewhere setting aside $1.5 billion for potential loan losses i think investors read that as potential, potentially jpmorgan is being conservative and could indicate concern about something big around stiystemic about the economy they want to be prepared for. a little lower based on that dynamic, because that's important for them obviously a large amount of loan exposure. >> mike, what are these stocks made to work and what did we learn about the credit cycle a lot of talk about that and what the buildup in reserves has, betting against the banks

shows there is a turn here in the credit cycle for the worse >> market needs, any sense that we basically have been panicking prematurely about recession and consumer activity eroding. because priced for something like that. one of the things a big overhang on banks, we did rush into late-cycle conditions where you build credit reserves and kind of didn't really have a lot of time what you might consider mid-cycle. nursed the better interest markets, return capital to shareholders clean investment banks story i think it's a little muddled. jpmorgan starting to look cheap on a five, eight-year basis based on earnings. no financial accidents and feel as if the recession scare is unwarranted, probably do better, but not acting particularly well final point i make over the course of earnings season pendulum swings two different directions on bank earnings.

everyone sggeared up for weaknes seikaly and the bar is lower. >> and worst performing sector down 0.2 even seeing improvement in the broader market. don't miss the cnbc interview with mike santamassino tomorrow. leslie picker, thank you. paypal one of the bigger decliners in the s&p after a c suite shake-up john rainey becoming the new cfo. and participate of a strategy generating new revenue strains kay rooney joins us. questions what this means for paypal's future? whether it means more resets to come >> yeah. item of questions there. in the near term, sara, paypal has earnings in two weeks. usually when there's a big management change like this companies want to give the markets something really good to

chew on. analysts there came out with a call on this this morning. talked the move and shake-up saying if paypal had good earnings comes out they would have give an pre-release saw it with another big fintech lost its cfo a couple months ago. announced that, same time pre-released numbers paypal didn't. appears to be one of the reasons the stock is getting hit today other thing on john rainey's departure, interim ceo is paypal's head of ir. another sign the move abrupt not a successor yet. dan shulman, adds pressure to what really was and is a high-pressure situation. growth of paypal slowing changed user guidance last quarter. had a 700 million user target they scrapped completely schulman and executive team under pressure and need to earn trust of analysts and investors

community at this point. up to schulman the sole person respond for turning them around. mayor issing limelight with rainey a tough situation for him and earnings will be big in two weeks here. >> paypal stock up, off 66% from the highs. kay what about the flip side rainey's going to walmart. how did the companies you cover in fintech and payments, like a paypal, view walmart a real threat at this point? >> interesting actually less about the walmarts of the world and more about big tech walmart the example. more than a decade ago, of a big company looking to big a bank. weren't actually able to get a bank charter and scrapped that doing more of a partnership model. seems like fintechs see the walmarts of the world as potential partners, although someone like john rainey moving there could be a sign taking payments more seriously and build things in-house. big tech seems to be the real threat when it comes to a lot of

fintech companies. bill rd, head of vinmolest to go to google. a similar situation around his departure. what does it mean for payments big companies building things internally interesting to see if less of a a partnership model going forward. >> paypal one. few users in the qqqs. all tech names rallying today. thank you. zoom video, splunk, crowdsprik, a big pop up 9 and 8%. delta rallies, reporting a smaller than expected loss the company forecasting a profit current quarter. delta ceo bastion on "squawk on the street." listen. >> never seen in our company's history demand for our product and services at the level we are and the month of march, highest sales in terms of bookings of any month in our history

>> bring in sheila kahyaoglu a price target on delta. sheila, your top pick. why did this come as a surprise? we knew ourline executives telling us how strong demand is for a while. >> really, sara, people miss the fact that everybody was so focused on costs in q1 really why we downgraded southwest a few months ago, but discussion shifted from cost to pricing power and how strong demand was, as you said. especially what delta talked about in their march trends with corporate coming back 70% up to 2019 levels. domestic premium 10% below 2019 levels the question now, how long could this strength exist for the consumer you've been talking to a lot of your folks about that on your show today. >> right so far pretty good which it comes to consumer spending airlines at a place they want to

spend. if inflation comes down and demand comes down, then, sheila, what do the economics look like? you still have higher jet fuel costs versus where we were in years' prior and headwinds on international travel demand like china still seeing lockdowns. >> i think you're starting to see that vist in q2. capacity is 15% beloan 2019 levels awed revenues only 5% below. pricing power strong in q2 as your economist said earlier on the segment, ed bastian pointed out, the consumer is strong and not seeing slowdown we published a travel survey this morning, leisure team did, and is inflation going to hit consumer at the lower end? what happens if you're airfare goes up by $100. might not stop that travel if your miami hotel room becomes $2,000 a night does that pull back that consumer spending? seeing it in travel survey published today.

40% of economies/mid-sized hotels will see shorter stays if prices go up by a 20% increase investors questioning the elasticity of the curve and how strong the consumer can continue throughout the summer and into the fall. >> not today today is a good day for everything that touches airlines, hotels boeing leading the dow american airlines leading s&p up 11%. what do you do with these stocks now? which do you like and which not so much? >> really favored airlines into the quarter. all the stocks covered whether aerospace, airlines and on a pricing catch saw strength across the board. continue to like airlines on pricing and what we're monitoring how long can the consumer stay strong on defense, don't expect several busts q1 but see defense budgets going up no matter what. u.s. or nato the two groups we're preferring now and putting a hold on the commercial air space and suppliers. >> got it.

sheila, kahyaoglu, thank you for your take. ripple effect. hotels for business travel in particular seema mody joins us. which companies stand to benefit? winners and benefit most if business travel does pull back if it does >> well, yeah. delta's ceo, sara laying out an optimistic picture on return of business travel as corporate travelers return and get back on the road overwhelmingly staying at hotels over the short-term rentals that benefited during height of 9 pandemic stocks like air bn, expedia. big winners outperforms. hotel names like marriott, hilton and hyatt spoke to marriott last week telling me demand for corporate retreats trending higher week over week. that means corporations are starting to deploy more of that travel money we really didn't see last year. of course, not in 2020 one thing to keep in mind,

though on the topic of interest rates, just in the past month we've seen the u.s. hotel pipeline raise concerns as construction has slowed die as much as 16% compared to the same time a year ago. so the fact that developers are slowing down their palgs of construction, that tells you that over the long term, there's concern about the full recovery in travel. right now marriott on pace for its best performance in nearly two years. you'll you'll see airbnb on track as well. recovery we're having, down for the week shaping up to be a strong rally, and a broad rally. what's notable today is that treasury yields are lower. >> yeah. >> you might expect after two very strong inflation reports that, you'd see selling of bonds, but actually going the other way. i wonder if that's giving the market support today and whether anything's change really

underneath >> it builds the sense markets have already got ton a place anticipating hot inflation numbers. obviously, bonds already very oversold, too. treasury yields stretched to the up side. probably need add breather no matter what. definitely shows you that equity investors weren't going to be blindsided by the number, if nothing else in context, s&p 500 firmed up, lower end of this several-week range. did not break down further i think really absence of a negative absence of selling on price. decent seasonal effects coming up lifting of tax selling all of that stuff probably in the mix here and probably also relatively impressive that it's happening when the banks continue to be on the weak side. everything else but the banks is more or less a contributor here. >> also shows that the earnings commentary has been a matter, it matters a lot. might not get the same thing our various sectors. line out of the banks, bumpy times ahead, caution, potential

recession and change in the cycle. word from delta, spending, pricing power, key i guess, mike, a tale of different sectors and different stocks depending on brand strength and where the consumer wants to be right now? yeah always is a push/pull during earnings season. probably more so this time interesting, too, investors want to embrace into consumer goods issue with index, consumer services isn't that big. discretionary consumer services. why the travel stocks go restaurants, very small market cap relative to overall national restaurant spending. interesting. not many places to go. meedsia is more non-discretionary. >> about two minutes to go here in the trading day i mentioned gains continued pretty much the final hour especially hard-hit parts of the nasdaq doing well. what are you seeing in internals now? >> quite strong. last two days indexes lower. breadth better than you might

expect upside volume. relatively strong showing. talking about travel and leisure-related stocks look at that compared to home building-related shows you the story of the last month basically people feeling durable goods not the place to be services have advantage. i would say volatility index down below 22. shows you, again, brace for something potentially scary with inflation numbers. now that's draining away still looks like -- short-term uptrend. want to relax more but so far not getting in the way of the market people reverting higher here. >> going into the close, look at the dow. up 331 almost a full percent most dow stocks higher especially strength in places like boeing. only two dow stocks in the red jpmorgan and travelers boeing, microsoft, american express adding most to the dow s&p 500 up a full% real strength in consumer discretionary. retailers good day as well

2.5% gain for the sector financials and utilities lower technology doing well, microsoft, nvidia, google, lifting the nasdaq now paypal a drag there. there goes the bell. nasdaq up 2% russell 2000 up 2% on the small cap. does it for me on "closing bell." now it's "overtime" with scott wapner and welcome to "overtime." i'm scott wapner just heard the bell. of course, right here just getting started. in a few minutes joined by tom lee, just released a last afternoon note you need to know about. i'll tell you about it "halftime"'s josh brown is here. we begin, though, with our talk of the tape. this rally even as another read on inflation burns red hot. given the move today, does it mean that it's okay to buy stocks again as some are now suggesting let's ask the chief investment officer for merrill and bank of