you very much. welcome, everybody to "power lunch "qwest i'm tyler matheson the s&p is off 20% off its all-time high. you know what that means it means that technically the s&p is in a, quote, bear market. stocks drop sharply in afternoon trading and we have our eyes on them the recent selling so relentless that some stocks are trading like they're going out of business, but are they so beaten down that they're actually good long term buys and these are big names that you'll want to hear about. plus, is the consumer starting to crack pent-up demand has led to a surge in spending, but are there signs of a peak? we have realtime data from mastercard, kelly, later this hour. >> stocks are off their session lows where the dow was off 600 points right now a 1.3% decline, 420, the nasdaq still the worst performer downmore than 2% for the dow this would be the first eight-week losing streak since 1923 the s&p as tyler mentioned today

ticking officially into that bear market teletore, down 20% from the intraday high since early january. the nasdaq is back from 2020 levels and apple has been drifting lower all session and nah many ways it continues to be the tale of the market and down 27% from its highs the semiconductor stocks also some of the worst performers again in the nasdaq 100. amd, amat which had earnings and nvidia all down 7% and broadcom down 4% and ross stores, the worst-performing stock in the s&p after the shocking revenue decline in sales and soft guidance last night and this was a name after t.j. maxx investors were hoping would do much better than what they reported last night and a 24% drop for ross, tiler. >> the sell-off has been dramatic and painful for many investors and it's also created opportunity and our next guest says some companies are trading like they are going out of business and it is a great time to pick them up at a discount.

joining us now is keith fitzgerald, principal at the fitzgerald group keith, welcome good to have you with us. >> thank you very much it's great to be here. >> you cite a couple of the stocks that are certainly household names. they are in an awful lot of portfolios they are former darlings, all three of them that are off 22, 44, 26% year to date let's start with apple and why you think the market is kind of -- has kind of got it wrong on apple >> i do think they have it wrong on apple you don't go to a store and have a 50% more sale. you go to a store with 50% less sale and you look for great management and products and the price. they're not giving away their iphone and walking away from apple products and that business is still firing at 34, 50% growth in most business segments if you have a long term view, this is a company that five

years or ten years old you will kick yourself even if you have to pay for it today and even if there is more selling ahead. the second one was one of the darlings of the last year, the last couple of years a lot of people would say if i had one stock to buy it would be nvidia well, that stock is down 44% year to date the story is similar here. chips aren't going anywhere. big data is the greatest single investing trend of our lifetime. every business from your car body shop from your retailer to your fast food, even your simple, basic, small businesses are adopting technology and adapting to it so any business that doesn't have it is going to pay a terrible price i submit these guys power that entire movement and it's time to buy the haystack and not the needle. >> cold front co is the last one down 26 or so percent year to date i still go to costco and it's still crowded. >> well, that's the thing. if you do an old-fashioned

parking lot count and i used to do this when i came to the business, we would literally go and count the cars in the parking lot. if you look around the city, costco's parking lots are still full and they have a bottom line desire to help the consumer go farther and the private label brands are just screaming off the shelves and i don't think you can find a better play even if there's no selling ahead. >> we see a losing streak for the dow since the 1920s and we can throw out all kinds of statistics like this and other things that will curl your hair. what caused this to happen who is to blame if there is plame to be apportioned? >> well, i think there is a couple of things happening this is a massive deleveraging this is clearly falling right into the fed's lap they waited too long the transitory call will go down as one of the worst financial calls in recorded history when

the dust settles i think we'll be studying it for years. how did the fed get so much wrong and wall street is preying on everybody else. they have leverage up to their eyeballs and they're unloading that in the face of rising rates and finally, we have a bureaucratic bungling and this is not a party problem this is a leadership problem from all directions. we have a group of leaders in the house, the congress and the senate and even in the white house who i submit, respectfully, don't fundamentally understand economics. so we have the very definition of inflation in a perfect witch's brew of a storm in front of us. >> is this a partisan issue or just leadership as a group i want to be clear for the viewer. >> absolutely. i don't do politics. i do money i have to figure out how to navigate this regardless of who is in power. this is not a partisan issue i'm not going to go left or right. this is a leadership issue and an american issue.

millions of families are hurting and they need the help and when is it going to take to fix this and take some concrete steps that are not politically driven for once in our lifetime >> i issue wi wish i could say that to happen, but i don't. one can hope >> thank you >> how does the sell-off compare to other sharp declines we've been through joining us now, market watcher, ron insana, cnbc commentator and adviser to schroeder's north america. ron, what is this? what isn't it and what should investors do >> it's a bear market. let's put that one to rest right away it's the result of the federal reserve raising interest rates it's a results of the pandemic and the war in ukraine and all of the things we've been talking about, kelly, since january that were possibilities that could occur and cause disturbances in the equity markets it's not japan in the 1980s and

not the 1970s. we don't have analog as long as the fed is raising interest rating, it's hard to put together a sustained, bull market rally >> so that's what this is which is to say it's the fed tightening what is it not >> i'veheard folks on our air earlier in the week compared to japan which was structurally a very different market and had inputs that had the bubble through the end of 1989. the 1970s, we saw inflation take ten years to reach 13% and we talked about this before going off the dollar and off the gold standard in '71 and the oil embargo, the iranian hostage crisis and this is not the same type of issue. to me, again and we've been talking about this and we have slightly disagreed about this over the course of the last several months and were it not for the pandemic and the war in ukraine, we wouldn't be having

this experience and the fed wo wouldn't be as some people claim, behind the curve. they're not and only draconian action by the fed would exacerbate the down side in the equity market, but it would throw it into recession. >> let me go back to previous guests' feeling. >> yeah. >> that the driescription of inflation last year as transitory, as a short-lived phenomenon will go down in history as one of the worst fed calls ever do you agree with that i mean, we cannot dispute now that inflation came on quick and i think quicker than the fed thought and it came on hot a lot hotter than it thought and now it's lasted a lot longer than we thought and so the fed is doing what feds do when they get in this kind of bind and raising interest rates, but the fed wasn't the only entity

flushing money into the system >> the revisionisthistory boggles my mind in the sense that we are on the fifth wave of the pandemic in the united states obviously with a lesser degree of severity than prior pandemic waves and china is still locked down and while ukraine, you were able to see it coming has exacerbated disruptions in the food and energy supply globally. so these are factors that are well beyond the fed's control and we've talk bdz this for many months that whether the fed saw the war in ukraine coming which it probably didn't and certainly not from a policy perspective, whether it thought china would lock down and go to a zero covid policy that would completely and further disrupt supply chains. again, probably at the time we were debating this it wasn't in the club it is easy to bet up the fed for keeping policy too easy for long, and i think the factors going into inflation are so much

different in prior periods that the second guessing and the monday morning quarterbacking is ill-conceived. >> let me jump in here, ron, all of that would be well and good if they hadn't expanded their balance sheet by $5 trillion >> they probably didn't need to do some of the things that they did and remember the panic where the fed decided to not only use the tools they used during the great financial markets and the stock market fell 34% in 21 trading days we were sheltering in place, working from home, going nowhere and i don't think there is anyone that can accurately assess, and both in the short run and in the long run. now we're unwinding this process and we still have these other problems which would include the war in ukraine and the continued lockdown in china. once we start to ease if we start to break down inflation and the fed will dial it back and that will be good for the stock market and we'll see where

the economy takes us, everyone is looking at today's data and the wrong data to look at. >> i think you are absolutely correct. there are a lot of imponderables. china shutting down is another one and the war in ukraine and the disruptions there is another one. i'll throw another one on the table and that is that the fed is made up of policymakers >> what are policymakers they remember experiences. what happened the last time the fed tried to raise interest rates in october, september of 2018 the markets had a hissy fit. i almost said something bad there. [ laughter ] it almost had a hissy fit and politicians and -- oh, i'm getting so tempted here. it's cable you know what happened, politicians whacked them, and i think that human nature played in here, too and that -- and that mr. powell and his crew

didn't want to raise interest rates because the last time they did they got their ass kicked. >> yes and no. i mean, on the one hand i would agree with you that there's probably a political dimension here on the other hand the fed is going well out of its way to prove that it is a, political and it will raise interest rates as necessary in its view to reign inflation irrespective, and i don't think this is imminent systemic risk in financial markets and wave seen a ton of deleveraging already and yofrpg we i don't think the next rate down will topple an institution and hedge funds did manage in a period like this, but i would argue that the fed may have shifted its mindset to the exactly the opposite of what it described and everyone be damned and we'll do this until inflation is gone. >> i don't doubt that at all, and i'm with you there

i think they have turned a very abrupt and resolute 180. i'm saying why did they wait as long as they did to turn off the spigot of quantitative easing and of raising interest rates when you started to see late last year, early this year real signs of not transitory, but more enduring and hotter inflation than i think they expected but be that as it may, they told me to wrap before i get into trouble. >> i know. and i'm going to save kelly and all of us here that. >> i want you to keep going. >> i don't have to go down with the ship either. >> don't do that, man. feel good, ron see you, man. >> be well >> all right you, too >> coming up, more subprime borrowers are falling behind it is car loans, surprise, surprise credit cards is this pointing to growing consumer stress plus stocks that

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shares of tesla which is one of the worst performers in the s&p 500. today's move is capping off a brutal week on tesla which is on track for its worst decline in 2020 the stock is up over 9%. tesla is also no longer the top stock in krcathie woods' rtf. tesla down roughly 25% so far. so from its peak in november, tyler, the stock has lost more than half a trillion dollars in market cap pocket money, rate >> kristina, thank you very much let's move on now. subprime borrowers are missing loan payments. it's a headline reminiscent of the housing crisis a decade and a half or so ago, but this time the missed payments are on credit cards, personal loans, car loans according to equifax subprime car loan delinquencies hit a record in february with 8.8% subprime ktss behind on

payments by at least 60 days what does it say about the lending environment and the consumer let's bring in our friend greg mcbride, senior vice president and financial analyst at bankrate.com greg, welcome. good to have you with us let's slither this out i want to focus car loans and we're talking here about subprime car loan buyers that's people with below qualifying credit, high interest rate loans and so what percentage of the auto loan market do you know is made up of these subprime buyers? >> it fluctuates and the thing is credit got a little bit loose in the next couple of years, tyler and we saw them still being made and still a very small share of the auto loan market, but i think the stress you're seeing is indicative of the fact that the $600 a month car payment, there's no give there, so when budgets are tight that's one that we're seeing increasing when you see the

casualty. >> car prices went up. used car prices went up and hence the loans went up. as we look back and we remember the subprime mortgage market and the cracks in the mortgage securitization market, it did not take high default rates there to cause a systemic crack in the banking business. is there that possibility here in the auto loan market and a danger that there are going to be auto lendees, people who have auto loans who will find themselves under water >> well, on the latter part, borrowers being under water, yes. given those inflated prices we have seen and the fact that a lot of borrowers roll over negative equity and they don't have much in the name of the down payment those values may have been inflated and that doesn't change

the rate at the way they depreciate >> in other words, if they were to sell that car tomorrow, they would not be able to pay off the balance on their loan. >> for a lot of borrowers, that's exactly right particularly if they bought within the last year or two and we're arguably inflated and people can sell their used car i think those are most at risk. >> so who's going to be left holding the bag on people who can't pay their car loans? who are the owners of the securitized products is it wall street? yeah, kelly. the first thing is auto loan markets and much, much, much smaller than what we see in the market and the securitization of the market is much, much smaller than what we see in the mortgage markets and i don't want to draw corollaries there, but subprime is the first place where credit loosens in the expansion when it's the first place credit

tightens when the economy starts to slow and you'll start to see the increasing delinquencies and a lot of those investors that might otherwise be buying those asset-backed securities and they know it. >> do you know, generally speakering who those investors are? are they hedge funds are they banks and auto companies or other kinds of institutions >> it's a little bit of all of the above, but mostly the asset-backed securities are really being bought by a lot of hedge funds, for example, that we are pursuing the higher rates of return. you don't see banks jumping in as much. >> i'm sure we'll find more if these levels continue. for now we'll leave it there thanks so much today >> greg mcbride. >> retail, unquestionably the big question of the week and walmart and target worried about the consumer those stocks got hit hard and we'll look at the etfs that got hit in that space.

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welcome back to "power lunch." the etf tracker. this week we look at consumer etfs and the staples or discretionary items. etfs seeing $440 million of withdrawals in the week that ended yesterday. the 20 worst performing major etfs this week, retail and consumer-related the earnings reportses from walmart and target really accelerating the declines in those sectors. both companies are concerned about inflation, a possibility of higher prices, margins. consumers cutting back on spending, squeezing margins and let's look at the moves on some specific etfs, the sector spdr consumer staples one, it is down .8% right now. vanguard's consumer etf, one week changed down nearly 10% and there you see invesco's s&p 500 equal weight consumer went down

9% these data come from our partners at track insight. more information available on the ft wilshire etf hub. let's go now to frank holland for a news update. hi there, tyler. here is your cnbc news update at this hour. a union warns labor disputes can disrupt this weekend if the casinos don't agree to a new contract by the may 31st deadline casino workers are in the middle of negotiations with the nine atlantic city casinos and are seeking quote, significant wage increases to help its members recover from the financial harm caused by the pandemic elon musk met with brazil's president balsonaro and the amazon rain forest he hoped the millionaire how the country protects the amazon. he also said musk's proposed take over of twitter was a

breath of hope. >> in what would have been christopher wallace's otherwise known as b.i.g.g.i.e. smalls subway stations will be loaded with limited edition cards honoring the rapper. his life was tragically cut short at the age of 24 in a still-unsolved murder and now back to cnbc's big papa! >> consumers are looking to buy trips rather than t-shirts experiences rather than stuff. but will that trend continue or will inflation, kelly, send americans back to the basics >> plus speaking of buying we have a list of stocks that may be too cheap not to own. a huge price to earnings discount beaten up and growing analysts linked by analysts and the trade arhead with the trade

down 116 points here on "power lunch.

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so far we bottomed at 1 c:00 p.. eastern time let's get caught up across stocks, bonds, commodities and we will start with bob pisani. bob, with the markets looking to close out a pretty bad stretch of weekly declines here. >> yeah. unfortunately, it's the tech sector that's getting hit again today. i just want to point out that the lows here essentially for advanced micro and nvidia. so big-cap semiconductors are weak and apple and microsoft are at their lowest levels since june of last year and they're not 52-week lows and apple's 25, 26% off of its high. so if you by that 20% rule those are bear markets for two of the big-cap tech stocks that you're looking at i told people to watch the two sectors that are holding up well those are energy and big pharma. so again today, energy's outperforming, although most of these names are negative exxon was at a 52-week high and halliburton, marathon and the old apache apa, schlumberger

these are oil service names for the most part, continuing to hold up well and outperform the market and the energy sector is basically flat for the week and remember, we are down quite a bit on the s&p the other sector that's holding up is big-cap pharma i don'tmean biotech. i mean old school pharmaceuticals, merck, johnson & johnson. these are two dow components and bristol and lily the bears will tell you when those tw sectors start falling apart that's what you know they're holding a bottom because they're holding up well. on the s&p 500, the s&p dow jones indices. if the index closes at 3437 we will classify january 3, 2022 as the ending date of the bull market and the starting date of the bear the s&p is currently 2835. so bear in mind there, they're talking about 3837

>> we'll stay here for the close. meantime to the bond market where we are seeing classic risk off behavior no more rising yields, rick. they've been going the other way. >> absolutely. think about the type of week we've had in equities as we go through some of these charts as you look at a week to date of the two year, yes, it's down about three basis points on the day, but the key is consider the week with equities, we are unchanged on the two-year which is sort of your aggressive maturity most closely tied to it is aggressive fed and it is down five basis point comes goes to your point, kelly, but they're down 14 basis points on the week so that is very key, and so far they've held yesterday's low yield at 2.77. we want to pay attention to that in the last few hours today and finally, these fed funds futureures and the lower they

go, the more they put in the high are they go the more fed they will put in they're unchanged on the week and that speaks volumes and more importantly, when was their low that had the most significance to the most aggressive fed well, it was on the 3rd of may what was the 3rd of may? fed meeting. it has drifted and we are 14 basis points higher which means 14 basis points less fed, and you don't need to worry about the numbers. what it means is we can talk about the fed being aggressive and jay powell saying yes, i'm going to be crazy aggressive and in the end the markets have always gotten their way and they've taken their foot off of the aggressive fed at least for these crazy weeks that we're witnessing in stocks kelly, back to you >> now to oil closing in the week with gains. pippa stevens at the commodity desk pippa? >> it is eking out a gain here with u.s. oil posting a fourth

straight week of gains and there are more developments on the russia front with finland's state-owned gas wholesaler saying imports from russia will be halted starting tomorrow. the company had said it had been preparing for this and operations will continue as normal this comes just after finland formally applied to join nato. this is also the third country to be cut off by rauscussia hald supply poland and bulgaria brent crude up a quarter of 1% at 112.33. another day means another new record for gas prices now at $4.59 according to aaa and county out in california now above $7 >> ouch. you understand if the old energy stocks have been performing well. >> high are hydro carbon prices do make the solar names and wind more attractive. utility bills are going up and

solar companies say even if they have to raise their prices because they're also suffering from inflationary pressures as long as they raise them less than their utility bills and they continue to look attractive and these stocks are betting a bid with the solar fund ticker up 6 1/3%. >> thank you, pippa. pippa stevens. despite the inflationary pressure, the consumer is still spending and that's according to mastercard spending pulse and showing a slight shift on spending on services and travel and experiences. does that mean what we heard from the retailers is not so much of a disaster brickland wire is head of the economics institute. brickland, this is an important big picture data point is this a shift that we're witnessing more into services? >> yeah. you know, it's fantastic to look at how the consume has evolved here they spent a whole bunch of money in discretionary services when they couldn't get out and experience the world as we've shifted back as

restrictions have been removed and people have gotten back out there, we've seen the travel come back in force and people have shifted their spending toward the travel and the experience economy which has been quite remarkable. >> to what extend t are they dog so does it offset the spending on goods and what do you say to those in walmart and target and conclude that the low-income consumer is under a lot of pressure >> yeah. i think it's important to look at the full picture there. consumers are grappling with higher food prices and higher equity prices and whether they're fighting with the bulls or the bears but they're trying to figure out what does it mean for their individual pocketbook and they they allocate their spending and it matters what they just bought during the crisis was more tvs and things like that and that has impacted their appetite to continue to spend on goods like that, but on the other side, they've been missing out on that

experience economy and which is why we've seen that momentum in that space it's been that re-allocation of spending into the cat gore they we've paid most attention to >> i see what you see. i also see a couple of things that are changing. one is that federal money is not flowing into the hands of consumers the way it was in 2020 or 2021. that's number one. number two, inflation has gone a lot higher than anyone anticipated today or six months ago today, so when people come through this and the markets which had made people feel in 2021 very, very much more wealthy than they had in 2018, 2019 and 2020, of course, those have come down so you have this collision of factors that i suspect is going to hit some time after this

spasm of experrential passes this summer and may draw the other way come fall in winter. >> >> i think the expiration of the fiscal stimulus is meaningful that has happened over time, right? it wasn't -- >> excuse me when stimulus comes into the economy, people spend it right away and you see that impulse. when the stimulus comes out of the economy it's more protracted as people have different savings rates and that's a very important point to think about here which is how much foregone spending happened during the crisis and what that savings level is amongst consumers who are those individuals that have the levels of savings because there are a lot of differences between lower income and higher income in the rate of savings there. so all of that plays into a big factor when we think about where spending is going to come from over the next six months i would just point out that the appetite that we've seen in experience spending is exactly

the same trnend that we saw before the crisis. this isn't a new phenomenon. it isn't a fat or whim it's something that people wanted to get back and we've seen that momentum for, and i think that's meaningful. it matters that people remain employed and they continue to spend. >> thof course, during the pandemic people saved a lot because they weren't able to go out and spend some experiences and restaurants. we had a guest a few moments ago, dan mcbride of bankrate.com and he was pointed to heightened delinquencies that he was seeing in car loans, personal loans and late payments or delinquencies on credit cards. are you seeing that at mastercard >> that's not a purview that we're looking at in the economics institute, but we are looking at publicly available data for that and looking at just kind of the trends and where consumers are in that front, but i would say it's important to watch is during the

crisis, a lot of folks paid down a lot of debt during that period and so now we're having that recalibration both in terms of debt loads and how people operate and how much debt they're willing to take on, but also as we think about the combination of that again in that wallet chair and that great rebalancing that's happening for consumers and what they're spending on today. okay, brickland, thank you very much appreciate it. brickland dwyer. >> thank you. bitcoin falling back below 30,000 down 06%60 from its highd the chart saying it's close to bottoming out and we'll take a look at those charts and we'll look at a trio of stocks that are down, but maybe not out. "power lunch" back in two. there they are, disney, darden, d.r. horton. (vo) for me, one of the best things about life is that

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tenable holdings, sentinel one and zscaler and cyberarc are up. palo alto networks is on pace for its best day since february after the company topped earnings estimates and raised its full-year guidance so even on a down day there are some bright spots. tyler, i'm not debbie downer today. >> no. you're always smiling and pleasant we enjoy that. thank you very much. >> thank you >> you got it, chkristina closing in on a key support level. kate rooney, more on the bitcoin shake out, kate? >> crypto investment sentiment is still sour. it is the shakeout crypto needs to find a bottom on what they call seller exhaustion, a group that they call market tirists have been some of the biggest sellers lately and it points to longer term holders and usually

that group is the least likely to sell and recent pressure seems to be coming from that cohort than those who bought at the top and all of this is removing some of the selling pressure from the market they also point to more crypto redemptions and showing people completely cashing out and the investor sentiment has hit a bottom bitcoin trust now trading at its biggest discount yet to the price of bitcoin investors may feel not as comfortable, and there's less hope right now for an etf approval and it is showing doom and gloom. the put/call ratio at its highest level since the drawdown we saw in may and that's showing a bit more defensive positioning and investors are watching a key bear market support level and it shows bitcoin's cost basis according to glass and that's $24,000, and a key level to

watch. >> does that mean that at today's prices most investors in bitcoin are still in the green >> so we had some stats last week showing at 40% of crypto investors and bitcoin investors in particular are now under water. so it's about 40% that have lost money so far if you look at the prices, they've been stuck in this range. are people going to hold out and in it for a decade-long investment and it is a fancy word for saying there are people just getting up saying i'm out of these markets and you see that as the prices have been stuck and there hasn't been a rebound and taking back to what people invested in the 60,000s and it's been stuck around 30,000 or 40,000 kate rooney. appreciate it. now take a look at shares of disney, nearly half of what it was trading at last september.

the company expected to grow earnings has it fallen enough we will get a trader's take. a key number we're watching on the s&p 500 which right now is down 20% from its all-time high and will it close in bear market territory? you'veoto icwi uto nd outstk ths

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facebook's products harm children, yestoke division andbably weaken our democracy. teens blame instagram for increases in the rate of anxiety and depression. it's not great when your customers are voting with their feet and deciding to kind of walk away. facebook's parent company meta dropping more than 26% last week... that is more than $230 billion in market share value. when will there be accountability? how many more people need to be harmed before mark zuckerberg listens?

welcome back everybody. cnbc pro out with the list of the cheapest s&p 500 stocks that could be buying opportunities at these prices each down at least 20% from their recent highs but with strong expected earnings growth and a lot of love from wall street analysts. for today's three stock lunch we'll trade three ds, beginning with disney, then darden and d.r. horton. let's bring in lee munson. lee, welcome good to have you with us let's kick things off with disney which has been very beaten up but has a lot of very, very good franchises >> disney is a value investor's dream. you've got parks, which is just a cash cow there's a limited amount of people they can put in per day and everybody wants to go to

disney if they need to raise prices, all they do is flick a switch and consumers will pay it. i think it's suffering a little bit from the culture wars in florida, which i find ironic as a guy who grew up in the '80s. remember when disney was hassled because they wouldn't let two boys or two girls dance together at parks and now we've come full circle in florida. but the catalyst is not just that cash cow of the parks but it's streaming if you have kids under 18, you know what i'm talking about. you've got to pay the mouse every month to get disney plus i think they have the ability to raise prices, maybe in the next year or so, and this is just an all-around great long-term stock. you buy them when they're down 50%. i'm all in. >> has its political brush fire with florida hurt it at all among customers? >> you know, i don't think so. but i think it's definitely -- i'm seeing it hurt in the price of that stock. i think there are portfolio managers out there that are

unsure but when you look at the volumes, right i was just in l.a. those parks are full people -- let me tell you, republicans in florida are still going to disneyland. this is going to blow over it's going to have very little effect on the long term. this is a tremendous buying opportunity. if it wasn't for this florida issue, i thinkthis stock would only be down maybe 30, 35%, but not 50 let's get realistic. >> yeah, some of these levels today, disney at 101, tesla in the low 600s, just amazing so what about darden, olive garden parent, what do you >> most traders will tell you if you're long right now, you're betting on one thing, china reopening and asia getting back to business so you have marginal profits to lead it higher. but this was really like a covid opening stock, right this is fast casual. are we going into a world where

there's no more mom and pop restaurants going forward? there's clear and present danger of a wage price spiral in low wage industries. darden is a poster child for that wage price spiral also buy something that pays people better. i'd rather buy chipotle because they can raise prices overnight and pay their workers a little more so darden could be dead money. it's a quality company, i just wouldn't do it right now. >> there's darden down 15% over the past few months and 30% this year. >> shall we move on to d.r. horton or dr. horton >> yes, dr. horton i would pick this but to me this is a related trade on the 30-year treasury what do i mean by that there's a lot of traders out there trying to go long treasury or home builders with the

expectation that the fed is going to cut sometime early next year i know it's crazy, we're talking about the fed cutting rates that they haven't even hiked yet but that's the mentality of this market home builders will be a big recipient of it. so i think i'm all for home builders it's not really my clients' tcu of tea but if you want to do this trade, buy a quarter of what you think you want to buy and start waiting for it to make money i'm concerned we might be a little early to home builder and early to things like the nasdaq, but it's time to dip your toe in come on. you've seen the nasdaq this week we're down 20% in the s&p, 30% on the nasdaq. i think you can just buy anything but just be cautious with d.r. horton. >> so you're going on a dollar cost averaging basis, buy a little now and see what happens, a little more in a couple of months. >> yeah. >> lee munson, thanks for the

enthusiasm we appreciate it, nice to see you. for more s&p 500 stocks that could be buying opportunities at these prices, visit cnbc.com/pro. ahead, we're looking at one stock today that could be the biggest tell about the state of the economy. we're back in two with the dow well off the lows, down 357. stay with us with my hectic life, you'd think retirement would be the last thing on my mind. thankfully, voya provides comprehensive solutions, and shows me how to get the most out of my workplace benefits. voya helps me feel like i got it all under control. voya. well planned. well invested. well protected. 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 at cdw, we get your it staff matching has be readycription. to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late

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nutshell tyler, how many times have we been told that we should buy the stocks that would benefit from inflation and deere would seem the perfect example. it's down 15% today. it's now down 30% in just a month. why? corn prices have been surging this year. wheat prices have been surging this year. so crop prices overall are up 30 to 50% if you look at some of these numbers, just huge that should be generating record farm income, but it's not. >> you would think farmers would be out there buying in anticipation of selling their crops at higher prices on the other hand, the story is that fertilizer is costing them a heck of a lot more. >> exactly. >> there are shortages there and i think they are kind of holding back a little bit on major -- because they just don't know where the economy is going to go, where the foreign markets are going to be. >> and deere is struggling with supply issues, with labor issues the stock is back to levels we last saw in 2021, if you want to call it that again, you can't do the

knee-jerk just jump into anything no, very few are benefitingfro higher prices. >> but we began the program looking at three great companies, apple among them. as powerful a brand as there is. we end the program with deere, as powerful a brand as there is. >> exactly if they're not benefitting who is. >> all suffering in today's economy. thanks for watch, everybody. have a good weekend. >> "closing bell" starts right now. thank you, kelly and tyler stocks giving up an early rally attempt with the dow heading for its longest weekly losing streak since the 1920s and the s&p 500 on pace to close in bear market territory. the most important hour of trading starts now welcome to "closing bell." i'm sara eisen we are off the lows. the dow is down about 350 or so right now but that early rally attempt just did not hold. s&p down 1.5%. we're now down more than 4% for the week