calling out major companies from twitter to amazon to apple and saying that corporate america simply has too much power. we're hearing that from both republicans and democrats. >> they used to call the gop the party of business. not so much maybe anymore. ylan mui, thank you very much. the dow is back in positive territory, up 134. >> keep your eye on it, you never know what it will do "closing bell" right now. thank you, tyler and kelly welcome, everyone. stocks are inching higher. the fed meeting gets under way is it the calm before the storm? the most important hour of trading starts now welcome to "closing bell." i'm sara eisen live at the milken global conference in california the markets are higher we're off the session highs. we got up 280 on the dow but we've been lower, down more than 100 today. s&p 500 going strong so we're building on that reversal we saw yesterday, up 0.7 of a percent cyclical groups leading the

market, energy, financials, materials. consumer discretionary also underperforming. small caps up 1% it's a value cyclical kind of day. check out the most active names in this final hour of trade. chegg getting hit hard, down 30% off earnings the ceo on cnbc earlier today. ford along with the most active names along with ev makers nokia and uber ahead of lyft and uber earnings coming this week we have some great guests this hour, including the former bank of england governor, mark carney bridgewalter's rebecca patterson on the wild news in the market where she's putting money to work and we start with another heavyweight market voice here. our first guest of the hour. joining us is howard marks howard, it's a pleasure, as always. >> thank you, sara it's great to be here.

>> we've been very eager to talk to you about this current market volatility we're having an up day, but boy, has it been a rough start for stocks, for bonds. where are you -- where are we do you think in this process of correcting >> you know, i don't believe that anybody knows how far things are going to go i do think that the worst of the excesses have been corrected the groups that did the best in '20 and '21 have been hit the hardest generally speaking, you would think. but you would think that the things that did the worse contained the excesses and they have been hit hard. >> tech. >> tech, of course and, you know, the increase in interest rates has brought down the prices on what we're most interested in, which is credit or bonds and so they are now offering much more attractive yields than they did six months ago.

so i think that -- i'm far from saying the decline is over nobody knows that. but i do think that the worst successes have been addressed. >> are you buying bonds right now? >> we're not market timers and so, you know, i would say that we were slower to put money to work when high-yield bonds yielded in the 3s. that's not anything to write home b now they yield in the 6s. they can be a real help to an investor trying to address a returning that they need so i feel much better about the value today than six months ago. >> we're going into this major fed meeting, it's kicked off today. expecting a double rate hike expecting they're going to start trimming their balance sheet do you think they're going to be able to do enough to tame inflation this year? >> that's a tough question

they're going to do a lot. >> more than the market expects? >> i don't know anything that the market doesn't know. so, you know, they're going to do a couple hundred basis points in the balance of this year, which is a lot exactly whether it's -- you know, what we're talking about is among other things limiting psychology nobody can tell you whether xyz action will be enough to limit expectations but i think it will get people's attention you know, it will slow business, it will increase the cost of doing certain things, and this should have a limiting impact on inflation. you know, the fed is now working off a playbook that paul volcker developed 40 years ago it worked for him. if you say to me how much do

they have to raise to get inflation, nobody can tell you that people can only express opinions but they'll do a lot i think they put a high priority on constraining inflation. >> volcker also sunk us into recession in order to do that. >> yes. >> is that something that you are predicting for the u.s. economy as well this time? >> history suggests that when you have a program of rate increases, you're highly likely to get a business slowdown you know, i had a loan outstanding in the '70s and i got a slip from the bank in '81 which said your rate is now 22.25. >> don't think we'll get that high this time. >> no, no. i don't think so we had special factors at work then but that was enough to, a, bring down inflation b, induce a recession. >> are you thinking this year recession? >> no. >> next year >> possible.

my -- well, i can't insist that i don't forecast and give you a strong answer to that, but i don't think it's around the corner there are a lot of factors you know, corporations are in good shape, the consumer is in good shape, the balance sheets are high so i wouldn't think in the short term. >> all right so are you active -- for years i feel like you've been bemoaning the lack of distressed opportunities. that's been your bailiwick. >> there aren't many distressed opportunities. >> coming, though? >> on the one hand, the deluge of money that the fed produced in the pandemic covered over a lot of distress. and a lot of companies were buoyed, what we call zombie companies. and as long as companies can get money, then they don't default the other thing is that in recent years, any corporation that wasn't asleep at the switch pushed out their bond maturities and converted their debt to

fixed rate so they fixed their debt at low interest rates so this combination of factors means we're not going to see defaults and bankruptcies on a large scale any time soon. >> so where are the opportunities for investors in this turbulent period? >> well, you know, if you want to get involved, there will be -- there will be opportunities. lending to -- you know, there will be shopping centers and office buildings that have problems and if you want to lend to those sectors, if you think that they're cheap enough, you'll have lots to do. there are other sectors. you know, there's been a lot of lending to tech companies. and if their earnings are affected, you know, historically we didn't lend to tech companies because they didn't have that

many assets for the creditor to attach there has been a trend toward lending to tech. if company's earnings really falter and the capital markets make it hard to borrow more, we could see defaults in the tech sector there will be some. >> in the tech sector? >> there will be some. >> so beyond lending to distressed tech companies, i know you've talked a little about faang valuations in the past you're not necessarily a buyer of equities. >> no. >> but what do you make of the fall from grace, some of these names, netflix, has had? >> in one of my memos, i think back in 2015 or '16, i wrote in the real world things fluctuate between pretty good and not so hot, but in the market they go from flawless to hopeless. a year and a half ago, the leading companies were considered flawless.

now some of them, look what they did to netflix now they're considered hopeless. >> 67% down year to date. >> the swing from a company that everybody thinks is flawless and is buying into to the belief that it's hopeless and you've got to get out, that can be very violent, as we've seen in netflix. >> so is that an opportunity is that an interesting buy >> i can't opine on stocks. >> what about crypto i think you've been warming to that >> well, you know, i wrote a memo in january of '21 talking about my time with my son. we were locked up together during the pandemic and we had a lot of talks the main upshot of that was he convinced me to stop talking about things i know nothing about, and certainly crypto is an area where i don't know enough to opine. >> are you buying it in iway a lot of people don't know about

it and are still buying it. >> well, he convinced me to avoid that topic. >> okay, fine. i do want to ask you also about politics, because i know you're active in no labels. you posted a fund-raiser lately for senator joe manchin and there are some real questions. we're in a midterm year. there's now this leak, the supreme court document draft looking like they're preparing to overturn roe v. wade. how does that color the investment horizon for you over the next year or so? >> the main thing is that it introduces considerably uncertainly. i think that we have never seen the country as politicized as it is and, you know, the future is quite unclear. will we have trump versus biden, which is one thing, or will we have two other candidates. and at this juncture, you know, two and a half years from the '24 election date, nobody knows

the answers to these questions so considerable uncertainty. >> is there a hedge against that >> pardon me >> how do you hedge against that >> you don't there's -- i mean this is a fact of life. the only thing you can do is, you know, there are ways to have a portfolio which is more protected against uncertainty. most of those ways involve accepting a lower expected return so if you're concerned about the uncertainty and the outlook for short-term fluctuations, you can make your portfolio safer, but you usually can't make it safer without running the expense of making it lower returning. >> howard marks, always good to catch up with you. thank you. >> it's good to be here. >> it's very loud here

i believe you said the bulk of the correction looks to be done. that's the headline. >> that's your opinion. >> i wouldn't say that. >> you said it -- >> i think the worst excessive have generally been ironed out. >> there you go. howard marks stocks, as you can see, are picking up steam up 165 on the dow, but it has been a brutal year for the bulls. a number of hedge funds are pacing for dire returns as well. mike santoli breaking down the performance of some of them in his dashboard, next. you're watching "closing bell" on cnbc. up 0.8 on the s&p. most sectors are higher.

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just say watchathon into your voice remote to watch now. building on gains here into the close. check out today's stealth mover. ipg photonics. one of the biggest winners in the s&p 500 after beating wall street's earnings estimates and it will shift production away from russia in favor of increased production in north america and europe a hedge fund is taking its total 22 losses to 44% that's according to reports. mike santoli taking a closer look at the performance of hedge fund favorite stocks, mike, for the dashboard today. which ones are you watching? >> tiger global was really riding the big cap growth and even midcap growth names on the

way up it was a great performer and those were actually in a lot of different hedge funds i'm not talking about macro hedge funds but long biased equity hedge funds they were in stocks that were supposed to be resilient growth names. you could pay up for them because they were going to pay off in the long run. here are two portfolios. this is the goldman sachs etf and the guru etf both of them concentrate in stocks that are widely held and very kind of crowded with hedge fund ownership you can see they have really fallen off, both relative to the s&p and the nasdaq 100 some people felt like a lot of these top performing hedge funds were really just faang proxies names like palo alto networks is high on the goldman list and s&p global is the top holding in guru so it was these general growth midcap favorites that got a lot of sponsorship here. i would say, sara, just in terms

of trying to gauge market cycles and whether things are getting washed out, a lot of people pointing and laughing at tiger global there was once envy and now there's a little bit of satisfaction that other investors are taking from their struggles. maybe that's part of the process of getting washed out. >> mike, thank you we'll see you in the market zone take a look at where we stand. up 151 points in the dow we've been down more than 100 today, up 280. we're building on some gains here into the close. s&p up 0.3 of a percent. every sector is positive except for consumer discretionary and staples. nasdaq up almost half a percent and the rug russell pops more than 1%. still ahead, we'll talk to mark carney about tomorrow's fed decision and whether he thinks a global recession is looming. as we head to break, check out the travel stocks led lower by expedia. it's getting crushed on mixed earnings hyatt, hilton, booking are all

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welcome back check out some of today's top search tickers on cnbc.com the 10-year note yield is on top. we're pulling back away from that 3% level. we hit it yesterday for the first time since 2018, all ahead of the fed interest rate announcement tomorrow. as far as the other ones, big cap tech amazon still not getting much love after its tough quarter, down half a percent. it's kind of a mixed picture in technology amazon and microsoft lower, but tesla and apple are higher today. pfizer, which had good earnings, good sales of its covid-19 drug propelling that stock up 2.4%. the supreme court set to overturn the constitutionally protected right of abortion ensured in the nearly 50-year-old roe v. wade ruling, according to a leaked opinion draft. just a few minutes ago, i spoke

to alexis ohanian. we were talking about web three and big business issues facing companies and the community in 2022 i asked him whether big business should respond to this one in particular listen. >> i do think businesses have a responsibility i think it comes down to the approach that ceos -- i won't even say founders, but ceos and boards want to take. i think it is possible to build a business and run a business that is, what's the word, not immune from politics but choosing to take the position of we don't want to take a position but for me personally, that's not how i think the path to greatest returns are i think the path to greatest returns are building a business that is principled, has those same principles publicly and privately, because that's how you attract the best talent. but i think this was a very scary memo to read

i really -- i thought the supreme court had already decided on this and that women had a right to it and to choose. but we'll see how it plays out >> clearly making its way into the conversations here at this business and financial conference the other hot topic of conversation is twitter and elon musk's purchase which i asked ohanian about. he's not as optimistic as the most optimistic and not as pessimistic but is in favor of banning hate speech, which they did on reddit. up next, mark carney is here to talk about whether the fed can achieve a soft landing, really, and avoid a recession. that's next on "closing bell." the dow just lost about 100 points, up 54. we'll be right back.

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stocks higher in today's session. energy and financials are the best performing sectors right now. dow is up 110 points it's been another crazy, volatile day here on wall street where we are holding on to the gains, up 0.6 on the s&p investors are bracing for the big fed decision tomorrow. joining us is former bank of england governor mark carney great to see you. >> great to see you, sara.

>> so you must be a little relieved you're not a central banker right now it's a tricky task they have to bring down these really high inflation rates, bank of england, the fed, without trying to sink us into recession. >> it's a very different world i stopped being a central banker two years ago. my entire time, it was about too little demand in the global economy, trying to get inflation up, demand up, totally different scenario now the series of supply shocks. the fed and others are grappling with that. they have to get very broad-based inflation down. >> do you think the fed will be aggressive enough? we're expecting 50 basis points tomorrow, trimming the balance sheet about 250 for the year is that going to be enough >> my personal view is they probably will need to keep going after that into 2023 there's a few factors that are shifting what is balance in the economy. one of them is that the reality of covid unfortunately is probably the equilibrium level

has gone up in the united states, it hasn't gone down. people weren't working for a few years. a lot of industrial restructuring at the same time so you get some churn, it's gone up so unfortunately the fed will probably need to rise above that 3 percentage point level they will feel their way as they go they're not going to precommit to doing that but in my judgment there's more to come next year. >> will there be a recession >> it depends on a variety of factors. it is a fairly narrow path for them to wong in order to avoid that global economy is slowing. you have the challenge of inflation, which is quite significant in the united states they will need to raise rates a fair bit that will slow demand as a consequence. now, against that strong consumer balance sheets, housing shortages in the united states and other factors that mitigate it but in my judgment it's going to be a very close thing. >> now in your new hat at brookfield, brookfield has been pretty active in the deal-making space. do you expect this volatile

environment and the new rate reality inflation to impact capital markets and the deal flow >> well, it's certainly impacting capital markets, as you know, sara it's making financing a bit more difficult for some types of deals. it's making the ipo environments more difficult i think for us, brookfield, we're focused on the backbone of the global economy infrastructure, real estate, climate transition all of those areas actually this provides some pretty strong tailwinds for them so we're pretty excited about that aspect of the environment obviously we want a world that's growing strongly and we'll do our bit to help support that. >> you raised $15 billion for this new fund that you are deploying capital, you're buying businesses >> yeah. what we're doing is our view is that the employment transition is a transition. you can't just flip a switch and all of a sudden become green across the economy, so we need to go to companies that have high emissions, provide them with capital, get those emissions down

that is a very, very large investable universe. it goes everywhere from utilities, to steel companies, automakers, across the spectrum. so we raised a tremendous amount of capital very quickly for that we're out there deploying it, seeing a huge range of opportunities and getting emissions down in the process. >> is it an awkward time for that at a time where we need fossil fuels. harder to push companies to decrease dependence and go to renewable? >> well, i mean fossil -- the price of oil is above 100, gas is at an all-time high actually companies are looking at the exact opposite way. actually i would like reliable low-cost power with low volatility, which is what wind, solar, hydro, and very soon hydrogen will give them. look, we have a series of conversations with the largest companies around the world, think amazon, think others, who are looking for clean power globally because they know that

relying on a volatile fossil fuel-based energy system is not in their long term view. >> what do you see when it comes to europe, which you have a pretty good handle on as well. clearly they need oil right now and need to decrease their dependence on russian oil very fast do you see a european recession as a result of all of this >> look, europe came into this in pretty good shape, but it's a big hit. my personal view is that they will need to stop -- they should, and need to quickly stop paying for russia's war by paying for russian energy. that means a short-term scramble for hydro carbons from other areas. they found some. they haven't found them all. what it's also meant is that they have tripled -- they didn't double down on their climate transition, they tripled down. they're tripling hydrogen, they're increasing wind/solar, adding battery storage in scale. so again, distinguish short term and medium term and for someone

like brookfield, it's the medium term we're focused on. >> mark carney, good to catch up with you the former bank of england governor, and now brookfield where he's the vice chair. up next, rebecca patterson whether she's finding opportunities. s&p holds its gains, about half a percent higher sign up for the cnbc fantasy stock draft challenge. scan this code or go to cnbc.c cnbc.com/stockdraftchallenge mark car knee signing up right now. it's free. scan the code. we'll be right back.

stocks holding on to gains at the close but it has been a brutal few weeks for the bulls here's what paul tudor jones told cnbc earlier on "squawk box" about the current situation for investors. >> you know, when i own bonds and stocks, you start with that. it's going to be a very, very -- a very negative situation for either one of those asset classes, right you can't think of a worse macro environment than where wore right now. >> joining me now, bridgewater's chief investment strategist, rebecca patterson here at the milken investor conference you want to own stocks and bonds. is that still the case for you >> yeah, it is roughly we're neutral equities

we have been looking for higher yields so are bearish bonds. we continue to hold that view. with the fed pulling back, the question is who are the other players in the market that are going to come in and right now we simply don't see enough of those folks incentivized folks to buy bonds so we still think yields have room to rise. >> what about recession rising even howard marks, and mark carney, it's going to be tough to avoid if you look at history and what the fed has to do so if we are slowing into a recession, aren't bonds a buy? >> eventually they could be. i think that the question is does the pattern that we're used to over the last 30 years still hold, right? so we're used to seeing you have rising growth, you have falling growth, inflation is low and stable it's secondary focus on growth. today we're in a different regime inflation is the bigger deal and so we're at a place where the market is pricing in that inflation is back near

pre-pandemic levels within two years with only modest fed tightening so if you think, okay, does that math work, we don't. we think the fed is going to have to tighten more than expected to get inflation to their target or inflation is going to be higher than expected so when you're thinking about balance in your portfolio, sara, you mentioned bonds. we think the place you get balance today isn't bonds, it's commodities. it's inflation-sensitive assets. so you have to think differently about your portfolio construction the paradigm of the last 30 years is not working now. >> so it's commodities what else do you like in this environment? >> you're trying to think what's going to protect me against inflation if bonds aren't doing it, if inflation is the key driver so it could be within the equity universe, companies that are going to be able to maintain pricing power. we're seeing more of that coming through this latest earnings season who's able to maintain their margins versus who can't that's one commodities, we still see a lot

of upside there. inflation-linked bonds are another opportunity that we see. and then even in the currency, market, you and i have been in love with currencies but they represent commodity producers so things like the canadian dollar. just had mark carney on. we think you want to be long that against the dollar. >> even though the u.s. dollar has been so strong really relative to most everybody. >> most everybody butnot everybody, right so the commodity producing currencies, not all of them, but many of them have been outperforming the dollar this year where the dollar has been strong is against countries where inflation isn't as big a driver and/or where the central banks just have a different reaction function japan is seeing a little bit of inflation, but they're being very, very determined to hold on to their yield control policy and that's what's resulted in dollar/yen taking off. >> that's a whole other segment for a whole other time rebecca patterson, thank you for

coming by with some of the tips that you've been giving some of the clients here at milken. when we come back, financials holding up as major averages give up gains oppenheimer sees a new opportunity. we'll talk to the analyst behind the upgrade. the banks are doing quite well today. that story, plus a countdown to earnings from amd and lyft when we take you straight inside the market zone. we've lost the gains and the dow has just flipped negative, down 10 points. we'll be right back. you re. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade

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♪♪ ♪♪ the dow has just gone negative we are now in the "closing bell" market zone. mike santoli here to break down crucial moments. trading day.

plus we have chris katowski on his upgrade of the banks, dan ives on what to expect from lyft earnings and more. the major averages have lost steam into the close, unable to hold on to yesterday's rebound after thatbrutal sell-off last week i did speak with howard marks earlier in the hour and he weighed in on where he thinks markets are in this current correction listen >> oh, i don't believe that anybody knows how far things are going to go. i do think that the worst of the excesses have been corrected the groups that did the best in '20 and '21 hit the hardest. generally speaking you would think -- i'm not saying that was all excessive but you would think that the things that did the worst contain the excesses and they have been hit hard. >> mike, it's notable from him especially because he was the one, a long-time distress investor, he was saying everything is in a bubble and really zeroed in on some of the tech valuations which had gotten

overdone notable to hear him say he thinks a lot of the excesses have been corrected, which he corrected me to make sure i got that right. >> that's right. that's what happens, i guess, when you see the ipo index, ark invest flagship fund, you see the clouds stocks, you see the spac index, all down from their highs. that's where the biggest excesses were. they have been largely drained away the big question now, the battle front has moved to what does it mean for the broader list of stocks, for the actual fundamental based parts of the market and whether in fact earnings forecasts have to come in and whether the fed will in fact tighten financial conditions to a point where the overall market has a little more trouble. so i agree the froth part of this cycle is largely been unwound, but now it's kind of a question of what happens next with the rest of it >> look at that yo yo chart

intraday of the nasdaq which just went negative again, fairly positive it's been all over the map today. speaking of stock winners back in 2021 append 2020, chegg pluchlting after they put their outlook and sayingcurrent conditions are prompting consumers to prioritize earning over learning. overall the past month has been tough for some of the traditional pandemic high-flyers. there's also netflix, teladoc losing half of their value in the time frame, mike the pandemic is over as you can see by some of these stocks the question for investors is what do you do now is this an overreaction or a totally fundamental shift in the business outlook >> i think the issue with a lot of these stocks, and maybe chegg is one of them and maybe teladoc is another one, you had the pandemic tailwind of massive adoption and pull forward of demand you've got scale on some level but did you actually reach kind of profitable escape velocity

even with all those advantages i think a lot of the conclusion right now is not quite at least not to the point where you can project out several years from some of these companies that are below the netflix scale. obviously nothing near amazon where they were upstarts wanting to dominate an emerging area of tech or consumer e-commerce and maybe didn't quite get to that point where they outran all the competition and got the business model finally tuned. so i think the market will struggle with that for a little while. >> yeah, so some relief today for teladoc, but the one-month chart on some of those names is ugly, ugly. op penheimer making a bullih call saying bank stocks each has around 30% upside potential. joining us now, the senior research analyst chris katowski behind the call. you think it just got overdone in terms of fears of slowdown

and recession for these banks? >> if you look at it, last year banks outperformed the pamarketb 700 basis points and up to january 13 packed on a thousand basis points of outperformance what drove that outperformance is a simple narrative, which is the economy is hot and that's going to lead to growth accelerating and rising rates. rising rates are good for bank earnings and not good for growth stock multiples so banks should outperform that was the narrative all year long last year the narrative now is that recession is a foregone conclusion, so you sell the autos, you sell the banks, you sell housing stocks. they shot all the usual suspects i guess my point of view is nobody really knows about whether there's a recession that's imminent. i was an analyst in 1994 when the fed raised rates six times

for a total of th300 basis poins and we had six or seven years until the next recession dame through and banks performed fabulously so a, we don't know whether we'll be in a recession but the market is already discounting it in bank stocks, so that makes the bank stocks less risky now and b, i think the market will be really pleased by how well banks perform and how much they derisked their balance sheet since the great financial crisis. >> besides the higher rates and slowdown concerns, there are also worries along with that about lending and whether or not that has staying power, about the capital markets and the drop-off we've seen in m & a and ipo activity so what are bank earnings going to look like in this environment in the coming quarters, plus the higher costs from everything from labor to general expenses >> people focus on all these little nits and do not stand back and look at the fact that these companies have been consistently earning a low to

mid-teens return on equity in all different kinds of environments for the last six or seven years. and, you know, what happened in the pandemic when rates came down so sharply and suddenly is that commercial banks' return on equity dropped about two percentage points but it wasn't catastrophic investment banks went up five or six percentage points and the outlook is that probably for the next two years they're going to be back in that 14, 15% range on average, which is a great place to be. and you can make a lot of money here if you can buy a company that's earning a 14, 15% return on equity at roughly half the market multiple and have it with a safe and sound balance sheet those are going to be good stocks >> mike, what do you make of the call banks are doing well today, financials are the second best performing group in the market, but as chris notes well off the highs. jpmorgan more than 30% off their recent highs >> yeah.

jpmorgan, if you look at the valuation, back under 11 times forward earnings, which is pretty low actually relative to the five-year average. if you have high conviction that recession is far off and we're not going to see any financial accidents, the credit markets will remain reasonably well behaved, that's where we are now and if you think that's the case for six months, then i think a lot of the risk has been taken out of the big bank stocks they're also a little less popular than they were coming into the year when everyone thought it was going to be this perfectly easy rotation out of tech and growth and into value and banks, and that's over >> it's working today but definitely has not worked lately chris, thank you very much with your call on the banks. western digital is the best performing stock in the s&p 500 right now and the tech sector after activist investor elliott management disclosed a nearly $1 billion stake in that company. in a letter today elliott pushing for western digital to split off its flash memory

business, arguing the company's acquisition of sandis is not working well separately in chip world, nvidia is under pressure today but off its worst levels after morgan stanley resumed coverage of the stock at equal weight, citing concern about deceleration in gaming and its comparatively high valuation meantime amd one of the big names set to report quarterly results after the bell kristina partsinevelos joins us. what should we look for? >> last we are intel warned or guided for june tor much weaker so how will that eat into amd's market share you just mentioned gaming and using graphics cards there's concern that gaming is starting to slow down. gpu availability is coming out and that's lowering prices for gpu units so i'll look at the margins there. and xilinx, will that change the guidance for amd going forward there's supply chain, inflation,

the regular shutdown in china that we'll be looking for commentary i'd like to point out too that we'll have the ceo on cnbc tomorrow morning as well as an exclusive after these earnings results come out but the stock, though, down 37% on the year, the worst constituent of the smh, lower that the socks atf, one of the worst performers in the nasdaq 100 and earnings beat out of the past five years. >> yeah, after years of a multi-year run for the stock higher thank you. lyft earnings also coming out after the bell that stock down 30% year to date ride-share demand took a hit during the omicron surge, we know that, but the company has seen demand shift and bounce back as we shift to the post-pandemic environment. joining us now is dan ives dan, what do we need to know about lyft, would you buy it into earnings? >> yeah, we'd be buying this as well as uber i think right here we're seeing a rebound in terms of this reopening on ride sharing.

i think they could pass costs and rising prices to the consumer i think this is an underestimated one, especially in this type of macro. it's a recovery name i think lyft here, risk/reward compelling, we would be buyers. >> why has the street been so negative on these names with travel stocks and other reopening themes working a lot better >> i think the biggest issue has been the driver shortage that was a headwind for both of them you had omicron in terms of earlier in january, which obviously was a negative and i think it's just been one thing after another with these names. but i think finally driver shortage issue is done profitability is coming back stocks are super cheap in my opinion. i believe lyft and uber, especially when you talk about disruptive tech in the past plays, what i view as lower risk

in terms of this market, especially in the reopening that we're starting to see going into the summer >> what about pricing power? we know the rides have gotten more expensive to deal with the driver shortage and everything else in the economy. where does that go if we start to see a consumer slowdown how much power do they have? >> yeah, i think they still have probably about another 10%, 15% pricing power. i think that's something where i think the street is worried that that's going to diminish what we're seeing in terms of rides but ultimately if you look, massive tailwinds as more go to the office, travel they'll pass that through and that's going to be the key here and they'll do it profitably that's going to be the theme with lyft as well as uber. these are names right now i think many viewed it as you wouldn't even touch them, underowned and i think there could be a lot of good news ahead, especially on this reopening. >> so you like them both, but

lyft or uber is lyft more insulated because u.s. growth is better than globalgrowth. uber has the global story and not as much of a pure play so do you favor that >> yeah, i think lyft is a springboard name pure play domestic there's no ultimately from the food delivery, that will be a bit of the headwind for uber that's what i like about lyft. it's massively underowned and risk/reward here, i think a lot more things can go right than wrong when i look at lyft and to a less er extent with uber. >> $50 target there, stock is at 30 dan, we'll see what earnings show us after the well thank you. dan ives you heard the two minute mark. mike, what do you see in the market internals we've seen a little slippage in the nasdaq and the dow. >> yeah, at the index level it's been just ping pong on a pretty short table today, staying within the range of the last two days the highs for the day were the

level that the market fell off of in the late afternoon on friday so really noncommittal ahead of the fed. you've seen very good breadth, almost 3-1 advantage of declining volume so you're holding most of yesterday's rebound rally. take a look at the 2-year note yield. that is going into the meeting at the highs the longer maturities have come in a little bit but the 2-year, the most sensitive to fed expectations is 2.77 volatility index really got crushed. it's now below 30 and we're six or seven points below yesterday's high so that's creating another little spike on the chart. as you can see, a long way to go probably have to wait until after the fed meeting for that, sara. >> yep hawkish expectations rising with that two-year note yield less than 30 seconds to go before the close the dow is higher by 76 points boeing, goldman, chevron the biggest contributors nike and microsoft the biggest

losers we are continuing to rally off that turn-around we saw yesterday toward the end of the session. energy and financials are your best performers. consumer discretionary and staples are your worst nasdaq is going to close out in positive territory, just negative a few minutes ago it's up about a quarter of a percent. small caps doing exceptionally well that does it for me here on "closing bell. see you back in new york tomorrow i'll send it into "overtime" now with scott wapner. sara, thanks welcome to "overtime." i'm scott wapner you just heard the bells we are just getting started. in just a few minutes we'll look at pimco's new playbook from erin browne, can't wait for that. first we begin with our talk of the tape. less than 24 hours before the fed decision on interest rates a decision that comes just as in some are suggesting the market could be ready to rip higher, yet others, including some big names, are urging caution. let's find out where gregory branch