tweeted a poop emoji >> i think he wants it, i don't think he puts that down and he just wants a lower price that's all it is. >> we'll see if tesla investors want it because more and more that's an issue and that stock is trading in the 700s brent thill, thank you and that's going to do it for "the exchange. "power lunch" starts right now ♪ ♪ ♪ jon, thank you very much welcome back to "power lunch" on a monday i'm tyler matheson and here's what's ahead on a busy hour. the market is looking to the fed to face one of the biggest facing the economy most have it wrong we'll get his take on what has to happen to get it right and where the solutions really are plus, the ceo of spirit airlines he's responding and maybe in not such a good way to jet blue's now hostile bid for the company

and you'll want to hear what he has to say in this "power lunch" expect, but first, to julia boorstin in. >> the s&p trading near 4,000 and tech stocks once again getting hit the hardest today. the nasdaq remains about twrat% off its year high and the big-cap tech stocks are mostly lower, apple, alphabet and tesla shares are falling while mreta is off about 2%. financials and consumer discretionary stocks also coming under pressure while the energy sector gets a lift on higher oil prices tyler? >> thank you very much, julia. pretty much every economist and investment strategist agrees that inflation is the biggest bogey and the markets and the economy may overcome and they largely agree what inflation's origins are and who the providers must be, namely the fed and other central bank, but our first guest today says they

have it wrong. here to explain is veteran hedge fund manager dan arvis he has an advanced knowledge of eastern russia and he was a lawyer in prague and restructuring communist economies. good to see you again. >> hi, tyler i don't see you, but happy to hear you >> that's all right. you listen intently, and i get to see you let's talk about why you think the markets got it wrong on the origins of this inflation and on who the solution providers should be and what the solutions should be. give us the kernel of the argument >> i'm not that markets have it wrong, necessarily there's no question that there's inflation, but i think that the analysis is incomplete and the fed is the wrong problem solver. milton friedman said inflation is all a monetary phenomena

except when that's not all it is which is right now this is pandemic, pent-up real demand, times synthetic free money demand, plus politically disruptive supply. they raise interest rates to cool off excess demand i don't believe that we have fundamentally excess demand on the contrary, and what we do have is politically destructive supply supply that's been disruptive by first trump's trade war and now, th of course, the european war and putin's brutality in ukraine >> also, would you include there, dan, the disruptions caused largely in china by covid and the lockdowns that are there now and what they had to do in -- in the past?

>> right so my view is that inflation will resolve itself when it resolves itself. if you can tell me when policymakers are going to come up with the right policies to help the supply chain shortages and disruptions, then we can give you a date, but raising interest rates right now is not a thing. corporates should be and are taking steps on their own because they have economic incentives, not political incentives to repair their own supply chains as best they can under the sucircumstances and i believe we need to move policy back toward free trade and establishing the basis for free trade. you also believe if i'm understanding correctly that by raising interest rates and withdrawing money through quantitative tightening not only will you have higher rates and higher carrying cover thes on an

already enormous federal debt, but you will be hastening and deepening what you see as a likely recession to effect not just the united states, but europe and many parts of the world. >> exactly that was laid out in the article that i published i guess late last week. we need to remember that we are still, despite the episodic inflation which i would call event-driven inflation we are still in a disinflationary long-term secular environment characterized by spiralling debt, aging demographics and above all, disruptive job-displacing technology which is basically going to be de-employing, not only blue collar workers, but already the employing skill workers, many whose tank could be replicated by a.i

>> i care about the last factor, the idea that this recession might be different because of that new technology and its impact on the labor force. how do you think the company and the aging demographicsneed to be taken into consideration when there are policy changes to impact the potential recession >> wells that's extremely relevant i think the lennor participation rid. everyone says oh, thera a shortage, it's been hanging around 62% of eligible workers for 12 years, mistaken since the financial crisis and the recovery people are not just looking for drugs and whether they're livering on governor social security check or payment protection checks people have withdrawn from the job market because available jobs, i know

to believe are declining and being displaced and replaced by technology the jobs that are available seem to be jobs that people don't want for example, the most suffering sector in society i would have to argue are nurses. they're quitting in droves because they've taken years of stress through the pandemic and they're notparticularly well paid the jobs that are in demand i really believe are filled, not withstanding the fact that you have people like jamie dimon, the ceo of j.p. morgan having declared that everyone would be coming back to the office. he's building a 6 million square-foot office center on park avenue and promptly turned around and saying everybody can continue to work flexibly from home, as well. he was concerned to offer benefits to employees, maybe a smooth transition back to the

office, and the idea is we have to do that because my competition is doing that and he'll wake up and say that's not the case >> i want to get one quick answer and then turn to russia and the war in ukraine if the fed is not the solution provider to the inflation problem, who is or is it some combination of solutions or does it just have to work its way out as you described earlier? >> all right i always -- i always defer to private market incentives as opposed to government, politics or philanthropic incentives. i think a lot of this work needs to be done to the extent it's possible by companies themselves and then the burden is on the legislative and executive branches to adopt some policies. now janet yellen, former fed governor and treasury secretary talked about a new trade regime

where we would be friend shoring, we'll be trading with our friends and we will not be trading with people who are frenemies like china who don't share our values pi think that is absolutely the wrong direction to move in i think that what we need to do is disabuse ourselves of the idea that we are going to change regimes. we're going to export our democratic values and our democracy and our prakctices through our authoritarian nations. at the same time we can do business where our interests align. >> one country and one person we can't do business with in your view is vladimir putin you say forget the oligarchs, many of whom you knew before they were oligarchs before they were working in eastern europe forget the oligarchs they don't matter. the only one that matters is putin and we cannot normalize anything with russia as long as

putin is there quick answer on why you think his exit is critical to the next generation when the ukraine conflict started the first thing i said on the first day is either putin has to go or the world order that's been prevailing since the second world war is at risk. vladimir putin violated the most basic provision of the united nations charter when he invaded ukraine, but much worse than that, okay, because others have done the same. he he has committed by any definition war crimes under the geneva conventions and genocide under the genocide convention article 2. how can we normalize relations with a country whose leader is a war criminal the only way that we can ever normalize relations with putin is -- sorry, with russia is to see putin removed from power and the only way that happens is if

he is demonstrably humiliated by being ejected definitively from ukraine with nato's help, and i mean more help and then we can talk about what comes next in russia which is risk and opportunity at the leadership level. >> dan, it is always great to see you. we got a lot in there and i appreciate your time your analysis is always provocative. >> thank you very much, dan arvis. >> thank you so much. >> julia >> it's a big week for retail with many companies reporting earnings home depot and walmart are out with quarterly results tomorrow, then target, lowe's and discounters will follow thisetfn 25% this year. what should investors expect and what names can withstand inflationary and potential recession pressures. let's bring in jerry storik, ceo of storic advisers and the former ceo of toys r us, and

before we get into some of the specific names give us your macro view what are you expecting to hear across these companies this week >> well, look. there's no doubt that consumer is slowing i don't think most of the companies reported this week i think they're strong retailers and report pretty good numbers retrospectively. when we will -- there will be more fright put into the market. they will say what is absolutely happening is we're heading toward some recession or environment or just a slowdown, it's clear that things are slowing down that's the macro environment and it's not slowing down and frankly, i would expect inflation to continue. so that's where we're going to be smfts numbers will be pretty good >> when we look at walmart coming tomorrow and then target the next day, how should investors think about the differences between those two

companies? is this all coming down to which companies are better positioned to have pricing power at the end of the day >> also, you're dealing with people who are large, these are big companies and people who have an incredible value position and you look for the retailers that take the least amount of the consumer dollar and waste it on overhead or another thing. target and walmart are two of the biggest winners in the marketplace. walmart's up for the year. target's barely down in a market where the retail is down 25%, 27% depending upon when you start and when you finish. these are good companies and they'll continue to bestrong players, by the way. so this is not the time to think that they'll start doing poorly because they've done well. a real recession and walmart always does better than target and this is going on for 50 years. walmart is always better than target if things are bad there are other companies and take a look at costco. costco's down for the year and

not as bad as other retailers. i think we'll not see that going forward. co costco wastes it, better than amazon, better than target as we get to the fall, that's where consumers will be just fine >> costco will call you and use the next bite in the next commercials. >> it's just a fact. look at the price of cheerios. per ounce it's 20% less at costco than it is at walmart. >> you need a front end loader to bring the cheerios home >> two boxes instead of one. >> i want to ask you about this and that is rising gasoline prices if gasoline goes to $5 and $6 a gallon how will that impair the consumer who may want to go to home depot or may want to go to walmart? are they going to have to postpone some of those purchases that they otherwise might make >> i think it pushes them to walmart, pushes them to target,

pushes them to costco. what consumers cut back on are more discretionary items like the department store segment and they've never fixed their strategy when things are good they'll say we still have more work to do. so where they're not going to spend their money is macy's or nordstrom or bed, bath & beyond and luxury, god forbid when the market does bad and trust me, the stock market crashes and that's what we're seeing >> jerry storch, thank you. >> no problem. >> coming up, we have the national average how did i know this? breaking another record gasoline prices today and according to aaa, prices in california are about to hit $6. julia, $6 a gallon >> california gas prices, too high. >> are we near a peak? plus look at that. draft kings, alibaba and neo

and we'll see if they agree in the three-stock lunch and later, the ceo of spirit airlines is responding to jetblue's hostile bid. we'll talk to him in a "power lu lunch" exclusive in about 15 minutes from now at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

well, folks, new national gas prices the national average currently stands at $4.48 a gallon you are kind of lucky if you can find it at that price. the climb higher has been jaw dropping just one month ago the average sat at $4.07 and come with me, folks. a year ago it was $3.04. for more, let 's bring in andy lipo of lipo and associates. >> thanks for having me, tyler how higher are we going to go on gasoline prices? >> unfortunately, we're going to go much higher my forecast is the national average will hit $4.75 a gallon in the next ten to 14 days, and after that we can continue to approa approach $5 a gallon as gasoline futures prices continue on their march upward. >> if you are unlucky enough to

own a diesel vehicle which some people do, thinking that they were going to get good mileage or you're a trucker who runs on diesel, how high is that going to go? that's already above $6 in some places >> right now the current national average is around $5.57. diesel prices have stabilized for the time being as we're seeing demand destruction especially in central and south america as well as parts of southeast asia. the market is trying to get better in balance on the diesel front and there still is the potential to move up another 15 or 20 cents a gallon >> i live in california, the gas prices are so high it's shocking sometimes to pull up to the pump and i wonder if you have a sense on whether the differential will grow in some of these states and if california's prices are going to continue to get even higher

or if you think you'll see growth across the country and at what point people are just going to stop driving and stop taking road trips this summer >> well, i think gasoline prices across the country are going to continue to go up especially in california where the consumer has to pay more just for the type of gas that they're burning due to stringent california regulations, but in addition, california charges a 51-cent per gallon state excise tax. the consumer is paying another 40 cents a gallon and other environmental fees and if you add on top of that, additional sales tax in addition to what the credit card companies are charging you, you can see why california runs about $1.20 a gallon versus other states like texas, oklahoma or kansas. >> i guess my question, though, is at what point does it start to impact consumer behavior here in the u.s we always talk about the summer as being a big driving season and obviously, people have to

drive to work, they have to drive to take their kids to school and when it comes to discretionary driving, the road trip the extra trip to the store. at what point do those high gas prices really start changing consumer behavior. >> we are starting to see that on the fringes especially where gasoline prices are far higher than the national average, and i would say once you get to $5 a gallon or $5.20 then you'll start seeing significant gasoline demand and consumers across the country will combine trips. as far as this summer's driving season, i think americans will take to the road they've been cooped up the last two years and when you're faced with, are you going to drive or are you going to fly where airline tickets have also been increasing as jet fuel prices are soaring, as well, i think the consumer is still going to be driving this summer. >> still going to be driving and paying a lot more for it andy lipow, thank you very much

for talking to us. >> thank you. >> further ahead on the show, the disruptor 50 we're getting ready to unveil the start-ups changing the tech world and we'll see how the previous years are performing. turning carbon emissions into vodka.. security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want—your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with unbeatable business solutions from comcast business. powering possibilities™. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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welcome back tomorrow cnbc's unveiling its tenth annual disruptor 50 list which highlights the fastest growing and most powerful private companies disrupting the public giants. since launching the disruptor 50 index in 2016 our companies who have graduated from the list have outperformed the broader nasdaq, but that growth hitting a major slowdown over the past years as investors move away from growth and into value some disruptor graduates seeing major market declines from the valuations insurance down 95% since its october 20 ipo blue apron down 93% and it's not all bad. some names did double their market caps. shopify is up over 3,000%. block, over 1,000% whil the combined value of this year's

disruptor 50 which we'll announce tomorrow is the highest ever and it will be revealed tomorrow on "skwquawk box" and cnbc.com/disruptors. >> this is your baby. >> my baby. >> these are private companies to make the list once you go public you graduate and now you are added to this disruptor 50 index we have 80 companies that have graduated, meaning gone public and are now publicly traded and we can track the performance of this index and what's been fascinating about the performance of the disruptors is they far outperformed the nasdaq over the past decade and in the past years we've seen these growth stocks hammered and they've underperformed the nasdaq and it's interesting to see how it plays out and the whole idea is to look at the private companies that will be the next giants or are currently disrupting these incumbents. >> so as you look at this list of 50 that we'll unveil

tomorrow, correct? some will repeat year after year unless they graduate because they're either purchased or they go public. >> but what's different -- what's different in the group this year from prior years do you see any sort of difference in texture or industry >> we tend to see different trends emerge. for instance, health care and tech companies rose in prominence during the past years, and also thin tech and logistics are two key areas to watch and they'll give you a tease. >> you'll be here to present it. >> fantastic, julia boorstin let's get to seema modi for a cnbc news update. >> here is what's happening at this hour. a senior official in the biden administration telling nbc news that the president has a plan to redeploy hundreds of u.s. troops in somalia to fight the extremist group al shabaab the decision reverses former president trump's move to pull

troops out of the country. expected to visit "uss george washington" after five crew members committed suicide in the last year several sailors say they lack resources and their living standards on the ship are not, quote, necessarily up to par. the supreme court is striking down a federal restriction on political candidates loaning large amounts of money to their own campaigns. republican senator ted cruz challenged the restriction by intentionally loaning more to his re-election campaign in 2018 than was permitted. and french president emanuel macron appointing a woman to the position of prime minister for the second time in the country's history. elizabeth born currently the minister of labor and previously served as minister of environment. >> i thought you said elizabeth warren, elizabeth born thanks, seema.

>> after the break we will head to phil lebeau with, ted christy. >> the stocks that wall street thinks can rally more than 40% in today's three-stock lunch

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we have 90 minutes of trading left in the day. we want to get you caught up on the bonds, stocks, commodities and the ceo of spirit airlines let's check on the markets right now. the dow is at session highs or thereabouts up more than 300 point, about 1% at 32,503. the s&p 500 is a little bit higher, solidly back above 4,000. the nasdaq is now close, close, close to turning positive at 11,800, down about four points fears once again about the economy, stocks and the things we need to buy like energy they're going up today, but stocks and things we may want to buy are heading lower, some of them travel, crafts, coffee -- coffee and even swimming pools. right behind me, the worst performing sector. now -- now i'll walk over here, two more steps here we go see? bond report. rick santelli in the bond market

where some economic worries are playing out. mr. santelli >> yes definitely some economic worries. you have a two-year note hovering just a smidge higher yield than we closed to friday and you have the barbell and both extreme short maturity and long maturity have pressure and the rest of the curve is mostly hovering near unchanged where yields are lower and the big story is as the global economy in the u.s. have question marks we're getting further and further away from recent extremes of interest rate. 285 is the intraday extreme or 27 basis points below that if you look at the next three charts there are extremes on the 9th of may if you look at the ten-year. you look at boons and they're now at 93 and they're down 26 basis points and if you look towards the uk who may have the

most questionable economy of all, their high watermark is 2.07% currently. 173, that's minus 34 basis points the point to this story is even though the fed has many more tightenings in this cycle, the treasury market for the moment certainly seems to have put in some tops that look to stand tyler, back to you >> rick santelli, thank you very much >> let's move to oil and started the day lower and is in the session. pippa stephens is up and the commodities are in the teens and i mean 100. >> starting with oil we did see a mid-morning turnaround that chinese demand will bounce back with shanghai set to re-open in june, this as the eu continues to debate a possible russian energy ban oil is now at the highest since march and goldman sachs' jeffrey curry telling squawk box this

morning that we don't know how high it can go it is up $125 per barrel at which point they think demand destruction sets in,but there are a lot of factors here that could push oil much beyond that 125 level. let's check on prices. wti is up 3% at 113.86 and brent crude up $114 a barrel for a gain of 2% and inching back toward that $8 and gasoline futures are up 1.5%, tyler, hitting another record high today. back to you. >> pippa, thank you very much. jetblue launching a hostile bid now for irspirit airlines, this after offering $33 a share for that discount airline and now the spirit airline ceo is ready to speak out and none other than phil christy >> thank you for joining you from the spirit headquarters in miramar, florida i know you can't go into details

about the tender offer of $30 a share. you still need to go over it with the rest of the board from spirit, but what's your reaction of jet blue coming back and making another bid to buy spirit >>. >> thanks for having me on you're right we can't comment on the tender offer until the board has had time to review it, but what we can talk about is the prior proposal that we received from them at $33 a share and why the board determined that it was not a superior proposal to our current merger agreement with frontier, and it circles around the primary issue of whether or not that transaction could be consummated and we invested extensive time with jetblue and their regulatory advisers and financial advisers, reviewing the strategy and looking at ways that it might possibly be done and that it's not likely to be approved and it boils down to a

couple of things and first and foremost, jetblue is in act upon litigation on the department of justice with american airlines and we view that as a very critical issue as it relates to solicit additional regulatory approval and in addition to that it's problematic because it is a higher fare, higher cost airline buying one of the largest alccs in north america for that reason our board put a tremendous amount of effort and they decided it would not be cons lated and superior. >> when i talked to robin hayes, he said you guys didn't do your due dillience and we've been disappointed by your lack of engagement we don't think the spirit board did its fiduciary duties and they have hidden behind the regulatory argument as a smoke screen basically, you didn't do their job, and what to you say to that >> i think they're putting

misinformation in the market we engaged jet blew and spevent the better part of a monthsd are month back and forth with them and regulatory advisers. we hoped up the data room to them and we had an extensive call with them and i participated with a del jens call with myself, with robin and their cfo and they asked us all of the questions they wanted to ask ask us about the business and at the end complimented us, and we felt the process was constructive and we're surprised and frustrated that they're spreading that misinformation. our board reviewed time and effort and determined it was not superior. >> there are a lot of people that say forget about jetblue, the merger between spirit and frontier doesn't have much of a chance of getting through this

administration do you honestly think that it will get doj approval? >> i do honestly think that, phil it's one of the reasons why we're excited about that transaction is this is a different type of deal the reason that we view the jetblue deal as problematic is -- the antithesis to the way we look at frontier. these are two like-minded low-cost businesses that are looking to expand more stimulation with lower fares this is not a discussion about capacity restraint and higher fares which is what we're hearing out of the jetblue camp and we view that as problematic with the frontier transaction it's about growth and more low fares. we think it will be very good for our shareholders because it will have tremendous synergies and flying out of the combined business and it's great for team members. we'll crete create 10,000 plus jobs over the next five years and good for consumers and over a billion in savings that we

think we can deliver >> jetblue has started reaching out to your largest investors and i'm assuming that you've done the same or kept them apprised of your thought process as you've gone through this entire process how active do you have to be and jetblue will come in saying these guys haven't done their work and we're a better company to merge with than frontier. >> we'll do exactly when we planned to do which is we have an exciting transaction to put forth for our shareholders and we'll be reaching out to them and making sure they have the information they need to make a good, informed decision that we're supportive of this transaction and the management and the board recommend it to our shareholders and we think we'll be able to show them all of the information they need obviously, we've been active already and that will continue here over the next month as we get closer and closer to the vote date, but we were planninging on doing that buy, and so we're looking forward to

getting that done. >> ted, thank you for joining us today. i know there are a lot of people who wanted to hear from you, your own investors and i appreciate we had a chance to hear from you, ted arechristy t ceo of jetblue airlines. we have a battle where you have jetblue coming out saying we are the better deal and spirit will say we think frontier will be the better deal and interesting to see how this shakes up. >> spirit air up 13% thanks to you, phil lebeau and ted christy. >> when life gives you carbon, make caocktails one company making vodka with a clean start. check out shares of robinhood continuing its declines of more than 40% the company's ceo v lad tenev joins us tomorrow for a cnbc exclusive.

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this is toxic cocktail diana olick joins us now with her latest on the series of clean start-ups. >> we reported a lot on carbon capture which is various methods that take those co2 emissions from factories and other sources and keep them from getting into the atmosphere what do you do with all of that co2? how about making vodka >> it's the best vodka on planet earth. >> and says the air company gregory constantine for planet earth because the vodka is made from greenhouse gas emission. >> we use that co2 in creating the alcohols that we create. >> distilling alcohol the old-fashioned way not only has its own emissions and it uses 35 liters of water. >> it is far better for the planet in that we are removing

co2 for every bottle that we're creating. >> the scientific process in these laboratories is invaluable, but it's not cheap air vodka, a 3-year-old start-up is a luxury brand about $65 a bottle, but at bathtub gin at lower manhattan the vodka is getting high praise. >> so once we tell them hey, this is how it's made and it's got a negative carbon footprint all of those really beautiful things is what happens to make them want it even more and then they go looking for it, where can we get it? >> the company is going beyond vodka, launching a perfume line made of co2 and launching its own facility. >> vodka is a gateway toward the other products and the industrial applications of where our technology can go. >> the company is backed by toyota ventures, jetblue technology ventures and parley for the oceans and capital direct management. total funding to date just over $40 million. carbon capture is becoming big

business as we look not just to reduce greenhouse gas emissions, but to keep them from getting into the atmosphere. the more carbon we capture the best opportunity, and vodka to eyeglasses and laundry detergent, coca-cola and jet fuel >> amazing stuff i was fascinated by the fact that you can use the carbon for so many different things what kind of competition are we seeing among other companies in the space? this company raised $40 million. there must abe a lot of interest from entrepreneurs. >> because we're seeing everything from carbon capture i'm seeing companies every day doing things from carbon capture and the next step is a company that might liquefy it and shoot it into the ground or sell it to coca-cola, but the more carbon we capture the more companies will want to do something interesting with that carbon and that's not a bad thing. >> i'll bet consumers are interested in that, as well. >> next time you're here, julia,

we'll do a taste testing and we'll invite diane. >> absolutely. >> the three-stock lurnch, analysts say look on the upside. we'll trade them next opinio do i just focus on when things don't work, and not appreciate when they do? i love it when work actually works! i just booked this parking spot... this desk... and this conference room! i am filing status reports on an app that i made! i'm not even a coder! and it works!... i like your bag! when your digital solutions work, the world works. that's why the world works with servicenow. see him? he's not checkin' the stats. he's finding some investment ideas with merrill. eyes on the ball baby. digital tools so impressive, you just can't stop. what would you like the power to do? (ted) after talking and texting for years, we got married... you just can't stop. for the family plan.

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time for today's three stock lunch where we trade three of the biggest movers of the day. on the membersnu today, draftkis has a whopping 153% upside as there's a buy rating nio, bank of america upgrades the stock to by and alibaba receives a double upgrade from jpmorgan let's bring in jeff and start with draftkings. are people going to be gambling more when they're in a recessionary environment or inflation stays high >> well, great to be here but let's talk about these three names, all dramatically down i think you're right, people are still gambling it becomes a hobby betting $5 or $10 on the celtics or whatever the nba finals may look like interesting enough, the american

gaming association stated they saw first quarter revenue at $14 billion and the whole gaming industry has about 25% of that marketplace. that's the biggest year ever so to your point, inside of inflationary pressure and everything going on from a headwind from a macro perspective, yes, you are seeing it i look at this oversold name i want to see it get back above its 52-day moving average but i think this is a buy and an opportunity because the all-time high was up at $74 just a year ago. >> give us a thought on nio, the stock, not the singer- singer-songwriter. >> you know i love nio but i am not a buyer yet. by no means do i want to fade or go against george soros. he took about an $84 million position in his nearly $7 billion fund i think there's just a better opportunity for a lower price in acquiring this stock in nio. why is this? it's just ambiguity. yes, they are the leader in ev

yes, i think they have a solution with more of a middle class ev car solution but we don't really know what the lockdowns inside of china have done so those are making me sit on pause and stay poised. but nio and with george soros you are seeing a little pop on the stock but another stock that's been decimated as we can't measure the uncertainty coming out of china. >> final name, alibaba, what's your play here >> i think you buy alibaba i actually own it through an etf, pgj but alibaba really hasn't recovered since jack ma made a lot of comments which regulators did not like in china. if you look at the massive growth potential inside of the cloud business for alibaba, that's going to be a con grungt line for what we've seen for aws, amazon. i think there's an opportunity here the $233 billion market cap is

about 23% the size of amazon so i like being a buyer as we see the second largest economy in china come back online hopefully this summer. >> thanks for joining us for our three stock lunch. an $80 billion bel air mansion went up for auction but the real action happened after the auction ended. that story next. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.

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robert frank has the details. robert >> this is a mansion in bel air listed for $87 million and ended up selling for just $46 million. the seller is a celebrity dermatologist. he built the house on spec hoping to sell it for a profit he said the auction was flawed and horrible the concierge auction which sold him the property guaranteed him a price of at least $50 million. he also complained the sale came as crypto and markets were collapsing concierge saying we are confident that market value was delivered. this price was largely in keeping with other big recent auctions we have the mega mansion nearby that was listed for $295 million, sold for $140 million at auction back in march and a home in beverly park listed for 165, ended up auctioning for $51 million this house is 21,000 square feet it has a hydraulic dj booth, a

marble car gallery and a glass elevator he defaulted on the loans on the house, which forced it into bankruptcy now, people familiar with this bankruptcy tell me that he owes more than $50 million on the house, so the proceeds won't cover his debt so guys, that's why he's upset he's underwater on this property even though it sold for just under $50 million. and maybe as rates rise and we see these wobbling stock markets, we could see more of this, especially in these crazy spec markets like bel air and beverly hills. >> you just have to wonder how big is the market size how many people could possibly wanting to buy a $50 million 21,000 square feet house it just seems to be rather small, right >> it is a small market and there was so many, as you probably know, there were a lot of actually plastic surgeons, dermatologists, luxury people that weren't really in real estate that built spec houses thinking this was a big market,

thinking they could put any price on it and the debt just ran up we see a lot of these houses now coming on the market even in a relatively strong market the l.a. market is strong, but these prices were based more on hope than reality. >> the l.a. market still strong, yes or no? >> clearly not as strong as it used to be. >> julia, it's great to have you here thanks for watching "power lunch," everybody. "closing bell" starts right now. >> thank you, tyler and julia. stocks mostly higher in another volatile session the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen we've swung higher for the market after a little morning sell-off this morning. s&p 500 up about a third of 1% we had a very strong rally on friday, but we're coming off of six down weeks for the s&p 500 the nasdaq is underperforming today. it's down a third of 1%. the nasdaq 100 which has a lot of mega cap tech names down a