earnings expectations for the coming year. you can say for many of these names maybe they're coming down a little faster so it could be an interesting point to look at. >> have a great weekend. happy mother's day. >> i keep trying to say you too. you guys too >> all right don't forget we've got "power lunch" podcast listen to the whole show and past episodes. subscribe to your favorite podcast platform. >> and "closing bell" starts right now. thank you, kelly and tyler and stocks are under pressure again, but off the worst levels in what has been another choppy session here on wall street. welcome to "closing bell," everyone, i'm sara eisen here's where we stand in the markets. down a little more than a percent on the s&p 500 not every sector is negative, though most are. energy and utilities just popping into the green they're higher but everyone else is down. materials are the hardest hit today. real estate at the bottom of the list as well some of the high growth software names getting hit again. the nasdaq 100 down 1.7% that's where the brunt of the

pain has been this week. after all these crazy swings, we're going out friday with only a decline of about 0.7 of 1% for the s&p 500. it feels a lot bigger after a day like yesterday and the selling today. check out the most actively traded names here at the new york stock exchange right now. we've got ford continues to be on the list of most highly traded it's been lower the past few days down 2.5%. palantir, nio and uber down another 3% today coming up on today's show, the ceos of two companies in the eye of the market storm today. we will talk to under armour chief patrik frisk, losing a quarter of its value as we speak. the macroeconomic, especially china, very much at play plus the ceo of adidas will join us with concerns of slowing sales in china a lot of the apparel names are all down in sympathy nike is the biggest drag on the

dow. let's get straight to this market action. the big question now, how do you navigate this crazy volatility in this market joining us, lindsay bell and peter chickeni lindsay, overall how much is this feeding into the selling? yes, the fed is front and center and higher interest rates but there have been high-profile misses from stronger growth companies like adidas or some of those internet names what do you make of that overall? >> yeah, that's absolutely right and that's what sticks in our minds so it doesn't feel so good and so it impacts market sent meant for sure when i look at the s&p 500 as a whole, i look at q1 earnings season, it was a really good earnings season so far i know we're winding down here, about 86% of the way through, and 78% of companies have beat their earnings expectations. more than that have beat their

sales expectations. >> what about guidance >> and outlook continues to move higher, actually when i look at the stock reaction, some of those, especially in the communication services sectors, the stock reactions did not feel good for some of those high-profile misses overall it was kind of a muted reaction when you look at the index overall. so honestly i think what we need to do is look at where margins go from here is there going to be compression sales? sales growth has been strong enough it's been able to offset some of the cost pressures companies have talked about, inflationary concerns they have talked about over the course of the earnings season. and we're expecting operating margins to continue to increase throughout the course of the year and so we'll see if that continues to be the case as we get through the next quarter or so >> so just to be clear, lindsey, you sound optimistic are you a buyer of some of these names that have been hit hard on better earnings and better outlooks and if so, where are those names? >> yeah, i actually am

optimistic because when i look at this marketplace, it's come down quite significantly, especially in certain pockets. and what i think is the narrative has changed for some reason to this story that growth is going to slow significantly we even heard that i think people were reading between the lines from the fed statement yesterday that they're expecting this major slowdown in growth, whether it's economic, corporate growth or within the consumer spending appetite we just haven't seen it on the corporate side or the consumer side just yet. and i think technology is one area where you can pick and choose your spots. you've got to look for high quality cash flows and companies that are returning capital to their shareholders but there are significant opportunities in there we started today, by the way, it was amazon, it was apple, it was tesla that was holding the market up in the beginning of the day. that did not last. but people -- i think buyers are starting to get interested in nibbling into that space >> energy and utilities solidly

higher now peter, you've been bearish for a long time. you finally got your big sell-off s&p is now about 15% off the highs. where do we go from here >> thanks, sara. no, i've been bearish since late last year and the thesis was that the fed was going to have to pivot and react on exactly what we've gotten, which is persistent inflation the earnings picture, i would say, is not quite as rosy as lindsey painted it if you look at company guides, you're seeing a couple of things for commodity producers in particular, even though that's the one area i happen to like here, for alcoa, for example, you're seeing unit volumes fall. you actually are seeing margin guides come down while this earnings season wasn't horrible on its face, the beat percentage is not a very good gauge of where things are about to go. when you pile that on top of the

fact that you can get a 4% yield from investment grade corporate credit and the earnings yield on the s&p 500 is about 5% with the prospect of margin compression, which i do think will continue to occur as the year goes on, that's not a great picture and setup for equities i think one of the other issues is, is with the 10-year at 3.1, 3.2%, perhaps, that doesn't give a lot of room for equities to rally either in fact i think what happens is that the equity sell-off will reflexively lead to 10-year yields at some point and a reinversion of the yield curve as the year progresses from here i think the market is quite oversold, positioning is extremely bearish. from here i would expect something of a rally in the broad indices. that said -- >> but you're a seller >> yeah, but i'm a seller of those rallies. >> lindsey, he pushed back against your earnings optimism,

especially on the outlooks and the peak margins >> yeah. no, what i would say is you haven't seen as many companies raising their guidance as we've seen in the past several quarters where beat rates were significantly higher and the margin of the beat was significantly higher so while the guidance increases have been reduced, so have the declines, though so people that are cutting guidance, there are less people doing that, less companies doing that than have in the past several quarters so to me that helps fuel my optimism about where future earnings growth can go from here by the way, corporations, when i look at corporate america and the s&p 500, they have more cash on their balance sheet than they did after rebuilding after the great financial crisis so from here, the corporate america as well as the consumer is in a much better position if we are to enter a bit of a slowdown in the near term. so i remain optimistic that we

come outside of the other side of any sort of slowdown in a solid position and we're able to weather that in a better way than we have in the past. >> all right, two sides of the story. we'll leave it there peter, lindsey, thank you both very much. have a great weekend we look at the s&p down 1.3% the dow slip, down 375 lows of the session earlier, 523. we also went positive at one point so all over the map again. we'll see where we land. up next, canaries in the consumer coal mine athletic retailers getting slammed following red flags from under armour and adidas. we'll speak exclusively to the ceos of both of those companies about what they are seeing from the global consumer as soon as we come right back you're watching "closing bell" on cnbc.

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and business is good. unbeatable internet from xfinity. made to do anything so you can do anything. take a look at shares of under armour getting absolutely crushed today, down 24%. this comes after the sports apparel company reported an unexpected loss for the quarter and cautioned investors about a tough year ahead as it weather global supply chain challenges and covid lockdowns in china that are putting a denti in the profits. joining us is under armour ceo, patrik frisk the market having a brutal reaction to your earnings, clearly caught off guard by some of these headwinds what happened? >> i think coming out of the earnings call that we had last time, we did caution the quarter that we were in, and we were

seeing more depression in china towards the end of the quarter as well as some higher freight costs than we had expected we also said coming into 2023 that we were going to see some headwinds early on in the year based on actions we had taken to make sure that we were able to deliver the orders that we had as we came into the year >> so talk about the supply chain impact, because that's clearly a big hit to margins is it getting worse when it comes to shipping and all the costs building up there? >> i think for us, we've been going througha two-phase situation here where we came into the quarter already guiding late last year that we were going to be seeing some shortened demand in the quarter because we made some actions to make sure that we were going to be able to deliver on time we did the same thing. as we said on our call today, impacting the year of about three points and actually the

first quarter about ten points, making sure that whatever we were making was going to make it there on time. we're going to see that ease as we go throughout the year and things are going to get progressively better in the back half of the year, but we believe in the first quarter there is going to be pressure on supply chains >> it might get better on the back half of the year on the supply chain and on that cost front, but what about demand now there is serious concerns in the u.s. we've seen what the market has been doing about a slowdown. >> currently we're not seeing -- as i said, we have been proactively cancelling orders. we had the demand for our brand and continue to see demand for the brand. so there's a little frustration i must say in our teams that we weren't able to meet the demand that's there coming off a great '21 and had made so much progress around our strategy and business transformation that we've been going through the

last couple of years but we are seeing constrained demand definitely in china and certain parts of eastern europe due to what's going on there in ukraine. >> you're starting to see the european slowdown you mean in terms of consumer spending >> well, in that area that is close to the war zone for sure there is a lot of disruption going on and we had -- we saw some adjustment, i would say, in the march month, also early in the april month from what's going on in north america right now, as we are weaning ourself off the stimulus last year. >> finally we're just looking at the stock price, down 24%, brings us to levels we haven't seen since september, 2020 there was a lot of faith in this turn-around plan i know this was supposed to be a big quarter for you. what do you tell investors now with this new outlook and some of the numbers coming down >> yeah, for us we were trying

to make the point today that our fundamentals are still strong. the demand is there for the brand. we believe our strategy is working. we believe what we're trying to do is control the controllables and make sure we're not getting ourselves into any sort of an inventory position managing our inventory as well we came into the quarter a little lean, minus 3%, so this is continuing to be disciplined about how we manage the brand. and we are seeing demand for the brand. so for us it truly is a moment in time. 2023 is going to be a year that we move through and toward the end of the year we continue to get better both in terms of inventories as well as sales accelerating we will try to make that clear today. but there was disappointment there because we missed our guidance. >> of course i think a lot depends on china, clearly, and what happens to the supply chain patrik, thank you for jumping on the news line and helping talk us through us. adidas not helping the mood

with some of those footwear companies. the athletic wear company out this morning with earnings, also getting hit with concerns over a slowdown in china. i spoke with the ceo and began asking him about the nor 35% slowdown in china sales adidas saw. >> you're basically seeing a decoupling of the global economies. in the west we are growing 13% that's the strongest growth we've had for the last five years. in china, you're seeing an economy heavily impacted by the current lockdown which is draining on the profitability. that is in essence what's happening. so very, very strong growth in the west, in america 13% growth, outgrowing the market by quite a lot. we can't control china i think that's something you're going to see for almost every global market company at this stage. you are seeing a very large

country that is slowing down the global economy despite the fact that we're outgrowing the market in the west. >> i want to ask you about the u.s. because there's been a ton of volatility in our market and there are increasing concerns about a slowdown, lack of fiscal stimulus and tighter monetary policy are you seeing any evidence of that in consumer spending in the u.s. >> actually we're not. we grew 13% in the first quarter. we're seeing our growth rate in the month of april above what we had in the first quarter we're seeing all our key partners in the u.s. growing very, very strongly. we're seeing a very strong order book and as you've probably seen, we also closed a partnership with footlocker to further accelerate our growth into the basketball area so we're very bullish about the u.s. we're not seeing a slowdown in the u.s. and the sporting industry is not so impacted bythe fear of slowdown in the economy.

>> what about europe, casper any slowdown there as a result of the slowdown effects from the war in ukraine >> again, we have a growing order book so again, april was better than the first quarter, so we continue to see a very, i would say, good trading in europe. so far we haven't seen it. in our stores this week, they were very full, so we're seeing a higher growth rate in the first quarter, so right now we're not seeing it. >> obviously costs are rising. how much more are you able to pass on to the consumer in terms of higher pricing? >> we're not going to be able to pass on all the increases that we're getting. that's why maintaining the focus of getting strong markets to grow, i spoke about north america with 13% we expect it to increase we need to make sure we focus on the top line because we're not going to be able to offset the

full impact of our shipping costs through price increases. so it's top line leverage that will drive the bottom line. >> the ceo of adidas the footwear and apparel category getting hit pretty hard. take a look at where we stand. down about 339 points on the dow. s&p 500 with a decline of 1.3 or so percent look at the nasdaq, that's been the hardest hit this week. again today. it's down 2% for the week it's down 2.2%. remember, we've had all sorts of swings small caps also getting slammed the most actually today, 2.4%. up next, it isn't just the equity market sending investors on a wild ride, there's plenty of action in bonds as well mike santoli will break down the relationship between stocks and bonds and what that signals when we come right back oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene

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treasury yields continuing their climb as traders digest

the volatile swings we've seen in the market this week. mike santoli here to take a look at how bonds are impacting the stock market in the dashboard today, mike. >> yes. >> both are getting sold very hard. >> very hard and the sensitivity of stocks to treasuries has also increased. today, for example, every time the 10-year treasury yield was above 3.1%, indexes retreat. so this is the so-called prudent portfolio, 60/40 making new lows today for this move 10% over one year. it's actually basically underperformed or just performed about in line with stocks so no help from bonds. where does that leave valuations in terms of equities against fixed income take a look at this standard view of the equity risk premium. this is the earnings yield of the s&p minus the 10-year treasury yield now, when it's lower, it means stocks are more expensive

relative to bonds. it means there's less of a valuation cushion between equities and bonds what you see here is we're basically at the lows of the post global financial crisis period this is kind of the rough area where it's more of an equilibrium around 300 basis points so 16 times earnings for stocks and we're at 17 1/2 right now. there's nothing magic about any one number there's no absolute fair value number in the '90s we were down at these levels and the market went up 20% a year but it's a different regime and that's why we get the pressure from higher yields. >> i think this is why it's felt painful for people because bonds have not been a safe haven refuge for stocks falling, which they typically are my other question about this, mike, if the whole idea is that powell will have to sink us into a recession to fight inflation, a la paul volcker, the yield curve is steepening. shouldn't it be flattening how do you explain that? >> really it's not recession fears that in the last two days

have been at the fore. we seem to be sort of swinging between, oh, no, he's got to put us into recession by being aggressive on rates to, oh, no, he's got to be moderate on rates which means maybe we have to worry about inflation getting escape velocity. so it seems like that's where we are and i think it emphasizes the narrow path to a soft landing that we're traveling. >> by the way, fed barkin not ruling out support for a 75 point basis hike just hitting the wires. i guess that's still under discussion barkin is not a voting member. >> not this time. >> powell ruled it out. >> if you want to parse what powell said, it's 75 basis points is not under active consideration now. there's not a meeting for six weeks. it could be under active consideration then. >> maybe it becomes under consideration. >> for sure. >> we'll see you in the market zone, thank you. up next, katie stockton weighs in on whether stocks look oversold after this big two-day

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what a roller coaster week for stocks after a big rally on wednesday, the market tanked yesterday and stocks are lower again today the selling continues. joining us to dig into what the

charts are telling us, katie stockton, technical analyst. on the s&p 500, is it ripe for a bounce or maybe something more than that or keep selling the rallies? >> well, obviously a huge pickup in volatility this week and really april was just such a terrible month in terms of returns. typically it would have been a very positive seasonal month so we have very weak tape, nobody would argue against that. i know there's good reason to look for a buying opportunity, but i don't feel like we're convinced we have one at this time the oversold conditions have not been the reaction that we had hoped and that's more indicative of a down trending tape. of course we have the s&p 500 testing some key support it is below at present roughly 4200 so if we see a weak close this week, so that means very soon, we would confirm the breakdown that we've been watching and while it doesn't have

indications for the very near term, meaning next week or the week after necessarily, it does have bearish intermediate or long-term implications with the secondary support for the s&p 500 roughly 3815 >> you're saying that if we break below that level, 3815, which we're not quite at yet, that would be long-term problematic? >> it's actually the 4200 level that's being confirmed potentially today, because we always wait for breakdowns to be confirmed. and so it should confirm today it's on a consecutive weekly closing basis. the targeted support zone would be around 3815 it's not as far below as it was a couple of weeks ago but it does suggest risk would be increased over the intermediate term obviously the long-term momentum has shifted in a negative way. we've seen pretty terrible market breadth or participation, meaning more stocks are going down on down days. we also have seen downside leadership from the mega caps and that's been obviously

problematic already year to date it's something that we probably will see more of, especially if names like apple, which is such a hefavyweightheavyweight, if i downside leadership, we'll see more of the same. >> today is interesting because apple is higher, but microsoft, amazon, facebook, tesla, all the other mega caps are lower. nasdaq 100 is under heavy selling pressure what do you see for that hard-hit part of the market, the nasdaq 100. >> the nasdaq 100 is below support and poised to confirm with negative enintermediate to long-term implications you can see that the percentage downside is far worse than the 3815 for the s&p 500 so the implications there are that we could see underperformance by the nasdaq 100 continued underperformance at this point, and that would likely mean that you're getting the underperformance from the

likes of apple, microsoft and google, which have a bigger footprint. not much bigger, but a bigger footprint in the nasdaq 100. >> which is down for the week pretty sharply down 1.75% katie stockton, katie, thank you very much. i want to show you where we standing right now in the markets. the s&p 500 is down about a percent, so climbed back just a little bit but the defensive plays are holding up better than, say, yesterday. consumer stap 'les are down hal percent. even technology is not the hardest hit today, that would be materials and real estate. coming up, mark mahaney on tech's rough week. and do not forget to sign up for the cnbc fantasy stock draft challenge. scan this code right here on go to cnbc.com/stockdraftchallenge to play for free

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check out today's stealth mover, it's cloudflare reporting better than expected top and bottom line results but look at the reaction down 16.5% after forecasting it could report a loss in q2. and any excuse to sell with some of these earnings. here's a check on some of today's top search tickers on cnbc.com macro and interest at macro, rates dominating the searching again. the 10-year yield right on top yields go higher again, 3.12%. the nasdaq selling off again, down 1.5%. the s&p 500 is there it's actually recovered a little bit, down about 0.6 of a percent from where we were a few moments ago. the dow also coming, it's only down 91 points

again, the low of the day down 570 or so. amazon gets up there it's down again 1.3% it's amazon, microsoft, facebook, costco and tesla weighing on the qqqs, the nasdaq 100 right now. amazon has been brutal lately, down more than 40% from the highs. up next, jpmorgan chief u.s. economist mike feroli, whether he sees a recession on the horizon and what is next from the fed. plus, energy outperforms again and another huge sell-off for crypto stocks. we'll take you inside the market zone, next

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we are now in the "closing bell" market zone.

mike santoli is here to break down these crucial moments of the trading day as always. pippa stevens here as well on the strength today in energy, very notable best performing sector and mark mahaney on tech's rough week and which stocksto buy now. stocks are extending losses after yesterday's massive sell-off but off the worst levels of the day and we've seen a little comeback here the dow is down 523 at session lows now down 110, mike energy and utilities are doing all right. it looks like -- i was looking for a reason yields are still a little higher but everything in moderation compared to yesterday. >> yeah. i don't know that it was so much a specific reason as it was we came into this day with what seemed near washout conditions yesterday and people very apprehensive about whether some investors are trapped or there's ongoing big liquidation. and the reaction to the jobs number was relatively mixed. yields going up. people very fixated on labor force participation.

and so far you haven't really found additional sellers near the lows for the week. it's very, very faint praise, i would admit, but that's where we are right now. still held hostage by where treasury yields go, but kind of an indifferent performance, at least today at the end of a grinding week. >> the dollar is a bit weaker today. that relieves a little pressure because that was a sign of all the tightness going on in the economy and the markets. despite the volatile swings and pessimism in the stock market, the u.s. economy still showing signs of strength. the u.s. adding 428,000 jobs in april. that was more than economists were expecting the unemployment rate holding at 3.6% let's bring in jpmorgan chief u.s. economist michael feroli. i'll start with you. it's hard to imagine that we're having conversations about a recession when we're adding in a tight jobs market more than 400,000 jobs and an unemployment rate at 3.6% how do you square that >> so i think the recession --

at least as i understand it, the recession narrative or discussion is really about perhaps next year, not about next quarter i think most people recognize that the momentum in the economy right now is pretty favorable, as you mentioned, the jobs number looking very timely and very strong. as we see these financial conditions tighten, stocks down, rates up, dollar way up, over time if this continues then you set yourselfup for a scenario where maybe a few quarters down the line, recession becomes more of a possibility but again, as i understand it, i don't think it's a ear-term concern, at least not for me but as you look out to next year it becomes a little more of a real possibility. >> so what do you think this is all about, that big rally off the fed and the big sell-off off the fed. is it concerns thatd f the fed l make a mistake >> i do think perhaps powell

maybe misspoke or was a little too firm in ruling out 75 basis points wednesday and maybe some read that as not being committed enough to the inflation fight. but i think that's a misreading. i think they'll do what they have to do but there may have been some words, i suppose, he would have chosen differently but the reaction has been a bit odd but i would say on net the fact that rates are generally up and the dollar is up is probably the kind of reaction they want ooec eventually -- they're not just doing this for the fun of it, they want to tighten financial conditions and slow down the pace of spending growth and the economy. >> mike santoli, i would have thought that maybe the market would have had a better reaction, certainly bonds and stocks, to the wage numbers which came in below expectation and continued to show a little bit weaker month-to-month changes. how is the market interpreting the jobs number? >> i guess arguably you could have seen that as a plausible response maybe just the fact they wanted to see a little bit more on

labor force participation coming back i also have to emphasize it's a global move in yields so, yes, obviously the u.s. employment data matter a lot, but i'm not sure that that's the sole driving factor in the way we're repricing the global bond market at the moment. >> what's up with labor force participation, michael feroli? that makes it tougher for the fed. >> yeah, it's tougher for the economy. i think it's really difficult to explain one month's move i think that's kind of fruitless. one thing i would say is that in general over the past several months, participation has probably been doing a little better than we and most economists have expected so perhaps last month was a little bit of give-back on what had been a generally more favorable than expected out term but i think it's really difficult to say exactly why april set that >> real quickly, what do you expect for cpi next week >> i think cpi will be

another -- we're still dotting the is and crossing the ts, but both core should be pretty firm. >> michael feroli, thank you very much. let's hit tech because it's a brutal week for stocks yesterday the nasdaq saw its steepest drop since 2020 big names suffered amid the selloff. shopify and ebay also feeling the pain after disappointing her earnings this week mark, how out of whack does it look to you now that we've seen -- how out of whack are the valuations any dislocations now that we've seen continued carnage in your sector >> we've seen a heck of a lot of dislocation in the space we started off with some pretty aggressive valuations. you know, we began the yore not knowing how aggressively interest rates would be rising, not knowing how high inflation expectations and real inflation would be rising and not knowing

how close we could get to a potential recession, maybe in the back half of the year or next year. the e-commerce companies, i look at what's happened to earnings estimates and revenue estimates. those are the ones that have been checked the most and had to come down the most, both on the revenue side but especially on the cost side. amazon gave you that in droves when they talked about the shipping and fuel costs, how that's really spiked up and brought down their profits the one place that's been safe for the companies that reported this week, airbnb, booking, uber, doordash all had positive estimates. all estimates went up but only one stock traded up and that was booking because of this venn diagram stock. it's got a reasonable valuation, very strong p & l and trading close to a market multiple i think this is one of the few places to do it. it's unfortunate but that's the reality. >> bookings. any others doordash is only down 1.5% but to your point, it was a good

quarter. >> yeah. so you're not getting paid for good prints. so you want to stay as defensive as possible. the consumer internet space, it's not a defensive sector, but the names that hold up the best are the highest quality assets i still think that's google, i still think that's amazon and i throw out booking as an idea too. now this is going to change at some point when it does, i think there's some wonderful reopening plays you want to be long uber and doordash when we start moving back to growth equities. i don't know when that is but when we do, these companies are showing improved fundamentals and you want to be long those things when that turn in the market comes. >> are you having any conversations, mark, with different sorts of investors, value investors, for instance, names like google or amazon or meta after these stocks have been shellacked? are we at that point yet >> i think we are close to that point. i have had those calls they first started coming in on

facebook earlier this year this thing is trading at a discount to the market, a pe multiple discount to the market. if you don't think they can solve the apple privacy issues, if you don't think that they can address the tiktok issues and better monetize their reels asset, i think they can do all of that. if they can manage their cost structure and there's more evidence they're willing to bring down their cost structure as the top line gets softer, i think value investors find that more attractive. on google too, i think that's the case for a while we can start seeing that for amazon too these are three assets with an enormous amount of cash. they're bulletproof business models nothing in this group is bulletproof in a recession but barring that scenario, they're bulletproof business models. >> as the market continues a recovery, the s&p is up 3% we have three positive sectors staples have gone green. the dow briefly went positive

just a moment ago. it is only down 61 points right now so back lower. nasdaq 100 also recovering, still down a percent as it's been the big loser, as mark has been saying. a lot of negativity around tech. let's zero in on energy because it is a big winner today and for the year oil prices hovering around $110 per barrel pippa stevens joins us energy has been a big outperformer this week can this divergence between the sector and the rest of the market continue? >> whether it's today, this week, this year or the last year energy stocks have really outperformed and wall street seems to continue to like this trade. jpmorgan has called the sector its highest conviction overweight wall street really likes this new age of energy company, which is one focused on capital discipline and returning money to shareholders through buybacks and dividends. they expect the upstream sector to report more than $800 billion in free cash flow this year. that's up 70% compared to 2021

the firm said that the health of these upstream companies is now at the highest on record but i do think one area to watch going forward is the refiners. they haven't shown the same type of outperformance that the upstream players or midstream players have that's because when oil prices rise, their input costs rise as well now everyone is talking about diesel, which is surging the crack spread is above 70 bucks. so we'll see if some of the higher prices for diesel and other refined products will translate to the bottom line for refiners certainly an area to watch going forward. >> it's just amazing that we're continuing to see the spike in oil prices obviously the geopolitical tensions have a lot to do with it and are so powerful that even with china shut down, and we saw how that's starting to impact companies with adidas and under armour, i just wonder where oil would be if china was not in that period and global growth wasn't weakening here. >> china is the largest crude

importer when we first got wind of the lockdowns in china, the market is now looking beyond that and as you said were it not for the softer demand out of china, prices could be higher this week we didn't get that same type of rally that some were expecting given that the eu is now proposing that ban on russian oil. and so the question is if they're not turning to russia for oil, who's going to make up the difference so there's certainly a lot of geopolitical factors to watch going forward and that's why investors continue to like these stocks even if prices were a lot lower, even at $80 on wti, energy companies would be printing a lot of money basically people say there is upside ahead for this group despite the recent outperformance. >> that's at 80. it's at 110 now. conoco phillips, mike, highest level since 2002 occidental back to 2019 levels the sector is up another 10% this week. who would have thought that energy would be the port in a storm when it comes to fed

concerns and economy concerns? >> right, exactly. the commodity, as you said, the bull case is china is obviously partially shut down and yet the chart still looks pretty good. i guess you could also say people are restocking for sure there's some geopolitical premium in there there has been some chatter that monday is victory day in russia, maybe that means there's going to be occasion for further escalation i have no idea if there's credence to any of that. but people lean in the direction of just in case type buying. when it comes to the stocks, there's been reiteration of capital discipline by all the companies reporting so investors do love that they're winning with the windfall and higher prices and getting the capital return. >> block is trading in the green today. missing earnings estimates but not seeing a slowdown in consumer spending. other crypto-related stocks underperforming the broader market kate rooney joins us even though bitcoin actually -- i don't know, is it a leader,

kate, to the broader markets are we seeing that correctly it seemed to go green today. >> the way i've heard it described really explains what's going on with bitcoin. it's trading like an exaggerated version of the nasdaq. we see what's happening with high growth tech stocks. if you look at bitcoin, it's usually a couple of percentage points deepner terms of the losses or the same thing on the upside so it is minimum micking w what's going on with high tech some institutional investors getting into the markets tending to look to crypto if you're trying to take a little risk off the table so that is one of the key and fist places they look to sell. >> what about some of these stocks after this week, how do they look? including block. >> it's funny, block is trading as one of these bitcoin proxies. the results last night, they only get about 3% of gross

profits from crypto trading. despite jack dorsey talking a lot about this as the long-term vision for block, which they renamed block as a nod to blockchain and the future of the business, it really right now does not make up a huge percentage of the profits. it really in the cquarter was al about cash that's why the stock bounced yesterday when the executives talked about some of the numbers. cash app grew 15%. the stock popped after the cfo talked about that. there had been a lot of concerns heading into this that wall street was still maybe too optimistic on growth estimates and cash app outperformed and wall street seems happy about that the banking and payments app and the seller side. but they missed in terms of estimates for the first quarter some of the guidance and april numbers were pretty good. >> kate rooney, thank you. mike, on a related note, some of

the credit card stocks under pretty heavy pressure lately we did get this hour a huge number on march consumer credit. $52.4 billion. that was like double the expectation. very historically high i know it's old data, but what does it signal about the state of the consumer and some of these stocks that have been hammered >> consumers were really swinging toward using debit cards and built-up savings during the pandemic. they burst higher toward rebuilding credit balances a lot of that was credit cards, not just other types of borrowing. i told you some confidence in terms of spending on the consumer i don't think we're talking about people feeling stramdppedo putting everyday expenses on credit but that is march data. >> what do you see in the internals as we've seen a bit of recovery in this final hour? >> still skewed to the downside. we opened up again with 90% downside volume and that has improved it's more like 2-1 declining to

advancing volume after yesterday's heavy flush lower with 95% of downside volume. you mentioned the yield curve, 10 year minus 2 year all the action has been at the long end it's been a little more about inflation worries versus immediate slowdown fears i guess you could say that's net positive in terms of an economic outlook. the volatility index hovering around 30 or six points off the highs for this little down leg that we've had in the markets. pretty noncommittal but definitely not able to get any further lift with this relatively range bound today. >> on the s&p 500 we are down less than 0.2 of 1%. >> it's been an almost 400-point s&p swing and weaver barely moved net-net. >> a stomach-churning week mike, thank you. take a look at the s&p it's down about half a percent and tracking for its sixth down week in a row so the context is key and it's very painful for investors. as far as what's working right now, it's energy

top of the list for the week, for the year, for the day. utilities also strong, staples holding up better. defensive groups like health care materials are the hardest hit. the nasdaq 100 going out with a decline of 1.2%. so that really has been where the pain has been felt it's down about 1.25% for the week which shows you the underperformance of technology nasdaq composite down 1.4% have a good weekend. that's it for me on "closing bell." i'm sending it to "overtime" with scott. >> sara, thanks so much. i'm scott wapner you just heard the bells and we here at post 9 are just getting started on this busy friday. in just a few minutes i'll speak to mike wilson and nancy davis on where the markets go from here and how much more volatile things could really get. we all wanti the answer to the same key questions, does it get worse in the days and weeks ahead or have stocks come down enough to stage a powerful rally? it's a hot debate. we will have that right here on this program today we do begin with breakin