on the morning of their ipo. i asked cia brian chesky what it would take for them to leave china whether it would be the political or social issues at the time they were committed and i think what it comes down to, kelly, here in this case is the business and i'll keep digging into it and bring you more as i get it. >> deirdre bossa reporting on airbnb there that does it for us today. by the way, speaking of big tech names and one portfolio manager will tell us his big undervalued tech name and to have 50% up from here. "power lunch" begins right now ♪ ♪ thank you, kelly welcome, everybody, to "power lunch. i hope you had a nice weekend. i'm tyler matheson, and we have, yes, a rally on wall street and here's what's ahead on this busy hour is amazon the most undervalued mega-cap out there and a wall street analyst makes the bull case and how

he says the stock price can double and calls this the best opportunity to buy shares since the financial crisis plus you think gas prices are high now well, just you wait. why china could determine whether they head even higher. we will discuss the warning from the head of the iea. >> the wall street rally we're seeing investors are taking news in stride to start the week. the nasdaq up 146 and speculation about president biden's off-the-cuff remarks seen as helping sentiment. nevertheless, we have bond yields on the rise and big banks leading the gains, b of a up 6% and you can see jpn, the leadership down here after j.p. morgan's ceo jamie dimon says storm clouds over the u.s. xha may dissipate and they'll reach a key target earlier than

planned and our leslie picker has more from j.p. morgan that's helping lift sentiment broadly >> hi, kelly we are here at j.p. morgan headquarters, lots of happy faces here at headquarters thanks to what the stock is doing today. part of the reaction due to chairman and ceo jamie dimon that the economic risks like war in ukraine and qt are more than storm clouds than a tsunami or hurricane. those may or may not dissipate and it will not look at the rick of recession and that's the key to today's stock move. not just j.p. morgan and its rate-sensitive peers like citi and bank of america and wells fargo, and it will surpass $56 billion up from its prior forecast this is an important metric benefited by rates and investors have shunned those tailwinds over fears about a recession in

recent weeks that's why even with today's gains, j.p. morgan is still down 20% year to date q and a just beginning with dimon with the first two questions about diminishing excess capital and its rationale around spending. dimon responded by saying he and other execs spent the whole day explaining why they are having the spending they're doing right now and the firm reiterated it would have $77 billion in expenses this year a number that caught the market by surprise earlier, but that number reiterated didn't go higher in today's slides, guys >> thank you very much, leslie picker >> financials, as leslie mentioned and so did as we did earlier in the broadcast in helping stocks across the board and inflation data in the week ahead and key earnings from reports from cost owe, nvidia

and here cis stephanie link. thank you for being with us. >> good to be here, tyler. you want to begin with economic data you'll be watching this week is there a number or two that you will be perusing >> yeah. i think this week it's the core pce, right everybody's focused on inflation and so is the fed. the fed looks at this particular series it should come in at 6.3% versus 6.6% and that's year over year last month and there are some people out there to the extent that this comes in better than expected, meaning lower meaning we are at peak inflation and we'll stay high in terms of inflation in my opinion for the foreseeable future >> peak, but not a break in the fever of inflation >> let's move out to a couple of stocks that you'll be watching this week with other news attending to them and the first one is costco. i would think among other things

there may be more costs in costco right now one of the things that might be helping them is revenue from gasoline sales >> for sure. that's absolutely that will help drive traffic for sure but they have the executive members are about 71% of total revenue and they also have a limited assortment model so they're more flexible, to the extent that we have disasters from walmart and target, i think costco can hang in there and it is 5.2% and gross margins, 11.2% flat everyone's looking at gross margins for the retailers and so that's going to be a very important number i think it's going to be a good one and it's too expensive and still, it's down 26% year to date and it trades at 31 times forward and i want it to come down more for me to buy. >> if it goes up, it's good, if

it goes down that's bad. though some of the luster has come off it, nvidia. >> yeah. this one is down year to date and it hasn't really gotten real cheap yet, but i do think the quarter is going to be just fine data center. we know enterprise spending on a.i. and high-performance computing and asps within the segment have been very strong. i expect that to continue. they talked about auto and about an $11 billion backlog billed into the next six years. they've got a lot of runway in terms of gaming. this, too, you want to watch for gross margins and supply chain issues and gross margins are expected to be 67% >> let's wrap p, where i like to get my makeup, by the way, steph, and that's ulta beauty. >> i'm not kidding >> ulta is a great store it's a great company i do, too. i like it, as well and this is why i wanted to highlight it

we have been getting encouraging data from sales trends and traffic trends it was up 31% in the month of april. so we've seen a comeback and they'll do 12% comp and the gross margin question is also another one for these guys and 38.9%, and i like this very much for the long term. >> steph, can i go back to nvidia for a moment and ask you about the vmware tie up. what do you make as someone who recently if i'm not mistaken sold it down and are concerned about the semicycle? >> yeah. i don't own any semis, kelly, at this point in time because i do think over the next quarter or two, we might start hearing about double and triple ordering if walmart and target are double and triple ordering, you can imagine what's happening on the semiconductor world.

the ceo is one of the best in the industry and he's looking for growths. unfortunately, i don't think vmware will do it for them and that's yet market isn't applauding the move. they want more buybacks and dividend increasing which they've been doing and they don't want more deal, but unfortunately, that's what they'll get. >> they're adding to 21% for the year stephanie, thanks. great to see you we appreciate it as always stephanie link. shares of amazon are lower despite the broader market rally and they're also one of the worst performing tech stocks over the past month and they're down 27% this year compared to apple down 10% and microsoft and google off single digits and they represent the best buying opportunity since the financial crisis and calls this the most undervalued mega-cap name. joining us now is james chuck and he's a partser ner and jame,

it's great to see you again, by the way and this is a pretty bold call. you think amazon was as cheap as it was in the financial crisis >> it's 1.7 times forward sales. the problem with amazon and they're the broader market is that multiples have completely collapsed and there's just very little confidence in what the earnings picture and revenue picture will look like in the first half of the year and as well as other tech companies and so the fed is not your friend right now and when you have this completely unknowable macro, you have to lean into the micro. what we think is the time-enabled time savers which is we call them will prove much more resilient in the revenue and earnings picture than the market currently implies as a result, that amazon at the forefront and the more emergence companies like a snowflake we really like amazon. two follow-ups

one, did you say its valuation was a price to sales and is it a maturing company no that wye should look towards p-e. the second thing is out in the real world, they are closing warehouses as they roll back the rapid warehouse growth that they added the last couple of years that has to tell you that the reset was somewhat fundamentally justified. >> real quick on the capacity issues look, they messed up they overadded capacity and the takeaway from there is also that the company's much more nimble following covid and its ability to scale up and scale down as ebbs and flows and they will right size within a quarter. with that being said and the three points i wanted to highlight on amazon. one is like you mentioned is growth yes, they grew 7% this last quarter and you have to strike out covid from that. on the two-year basis they grew 22% and on a three-year basis they grew 25% annually

as the comps get easier, that growth will revert back to the 20% number as far as the valuation is concerned, yes high p-e it's an expensive stock and they're investing for growth if they assume that growth is stalled. it's over and it's a walmart gdp-esque and on this year's revenue number alone it would be their 150 in earnings per share and it would trade around 15 times and lastly, on the proxy statement. no one really reads proxy statement, but amazon has one of the best management compensation programs in tech andy jassy does not earn 80% of his compensation including age 6 to 10 and that's shareholder friendly as you can see and he wouldn't have taken the job unless it was opportunity and not for fun. >> this day and age some ceos don't last six to ten years.

a lot of them don't, particularly with a falling stock. talk me through amazon prime and whether you see it as a consumer discretionary item that might be vulnerable to -- to subs cutting off as people have to spend their money on higher price groceries and gasoline, et cetera >> that's a great question i think amazon gets lumped into the subscription basket with netflix and so on, but when you think about your portfolio of subscriptions that you own, what is the most valiant? you are paying $139 a year for amazon to get things within a day, max, two, or you're paying $120 for netflix to use up your time versus save your time with amazon we see it as much less discretionary and if you believe andy jassy's words that he put in his investor letter, his very first been talking about 2021, spend levels on household basis

have only gone up and their prime membership continues to hold well above 200 million members. so you're not really seeing churn on the member level and so we think that as a result of covid, some companies have become -- have benefitted from covid and some companies have not. we think amazon is certainly very much in that former camp. >> it will be interesting to see how amazon and prime perform when they start broadcasting nfl games later this year. and that will be an interesting case study to see if a lot of people have it and will people go find it on prime and we shall see. thanks very much clockwise capital. appreciate it. coming up, there you are investors pulling more than $10 billion from tether in the past two weeks getting untethered as regulatory scrutiny grows among the world's largest stable coin. the co-founder and ceo is more

stable than anything, and we'll talk to him next plus goldman sachs says uber, facebook and alphabet are large-cap stocks does our trader agree? it's the focus of today's three-stock lunch coming up on "power lunch."

welcome back to "power lunch. i'm kristina partsinevelos within that group, we're tra tracking grocers and retailers walmart is firmly in positive territory after its workweek since the 1970s. >> costco is in the green and not as bad since 2003. conagra, tyson and kraft-heinz you can see kraft up 2% and those are still nmore than 10% off their recent highs >> there you have it back over to you >> thank you very much the world's largest stable coin which is tether is seeing the value of the circulating supply plunge the investors have dropped $84 billion to $73 billion today crypto is meant to be pegged to the u.s. dollar, but it does dip as low as 95 cents on may 12th

and after the coin plunged well below its dollar peg and it's led to questions about regulation and risk. joining me is tether and reeve collins. has tether made enough moves in the past few weeks to shore up questions about its soundness? >> well, i think what took place in the last few weeks illustrates how well it functions and the fact that it was almost $12 billion redeemed and it was redeemed at exactly $1 speaks for itself when you mentioned that in the past it dipped down to 95 cents it's not quite accurate. that while on third-party exchanges it traded as low as 95 cents and third-party exchanges are based on supply and demand there's tons of supply and so the price went down. however, the point of tether is if you want to redeem it for one

dollar, you can also redeem it for one dollar at the corporate web sooirt and i was the former ceo and co-founder these are my observations and i'm sharing insights into that market it has never lost its peg. you can always redeem it for a dollar it's just on the third party sites. >> does every dollar of tether, is it backed by a dollar worth of something in the real world >> so initially when we started the company, and we'll issue you a taken and that token moves on the block chain and you can redeem that and it will always be held in a bank account and we stuck to that. over time it's evolved and you'll have to look at the research and what they've done on tether's backing and it's revolved around other things specifically dollar and it's backed one to one with instruments that are still worth one dollar

if there was a liquidity crunch were trying to be instantly redeemed, is that because what you're saying is you basically held the dollars in a vault and a bank account, but now maybe the dollars may be held in commercial paper is that right? what are the range of assets backing those now and how liquid are they >> they are extremely liquid and tether came out with u.s. treasurys, specifically and i can't comment on what the mix of the backing is, but i do strongly believe that it's fully backed and you will not have issues redeeming it and that's the difference between asset-backed stable coin so the big tragedy in the marketplace, but it's not a surprise is it anal algorithmic stable coin. here's a mechanism to peg a token to the dollar.

we don't know if it will work, but we believe it will, but in this instance, it didn't work. >> to be clear, there is a distinction the algorithmic one is not backed by anything, and if the value of those assets declines then tether's holdings could still be worth less than 100 cents on the dollar. >> yes if the assets they put it in declined in some factor there it is a possibility that it's worth 99 cents for a point in time, but that would only mean that 100% of that billion is liquidated right away. i think they will always be able to liquid ought of a dollar and their reserves will not be called upon one time >> is it 10%, 5% 15%? >> where is the threshold for where that demand couldn't be

met to one. >> $12 billion that was intvently called upon and redeemed without a problem that's the best use case and that testment to how valid that asset is >> you can attest that anyone who owns tether will get less than a dollar of what they hold? >> i can't guarantee anything, but i believe that >> reeve, thanks for joining us today and we appreciate your time thank you for coming on. >> absolutely. i hope i've shed a little light on the industry. reeve collins. we have a rally on wall street today, but even with those gain, the averages are lower over the past week, but look at the emerging markets etf up 3% in a week. are the opportunities and the bigger ones overseas what about opportunity in big tech goldman sachs says uber, meta, google and they're the best positioned to weather the recent volatility so what does our trader thk?in stick around for the three-stock

lunch to find out in just a few minutes' time.

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29%. that has investors looking outside the u.s. for returns seema modi now on where they're finding them seema? >> hey, tyler. global markets have certainly not been immune to the recent volatility, significant outflows this year, but emerging markets have fared better than the s&p 500. down 2% in the past month versus the s&p 500's 7% decline certain markets like indonesia, norway, and broader latin america are not only outperforming the u.s. and trading in positive territory for the year what they all have in common and they're commodity producers benefiting from the rise in oil prices btg which manages $3 billion in latin america and equity remains bullish on brazil specifically petrobras and vail, and the interest rates have climbed from 2 to 5% this year and sell-offs

have brought valuations down with brazil trading at eight times forward-looking earnings the etf now trading at price-to-book ratio and below the 1.7, and in brazil, russia and the interest rate decision in turkey and plus industrial profits out of russia are on the calendar that investors will be watching closely kelly and tyler? >> thank you very much, seema. >> let's get to frank holland for a cnbc news update. >> here is your cnbc news update at this hour active shooter incidents increased 52% from 27021 compard to the year before 103 people were killed and 140 hurt excluding the shooters and that's a 48% jump from theier before 60 of them were men. goldman sachs chairman and ceo david solomon says he is

devastated by what he calls a sens senseless tragedy. a shooting death on a new york city subway train. he was a dedicated and but leff ed member of the family and police are still looking for the shooter. employees responded to would-be robbers by kicking and punching them. one employen said i didn't think too much, i just reacted. >> thank you very much ahead on "power lunch," everybody. financials leading the way thanks to those positive commentses from j.p. morgan ceo jamie dimon. jpm is up 7.3% and we'll get a check on oil and where it heads next is dependent on what happens in china 110 a barrel for wti we're back right after this. but so is your sound engineer. you need to hire.

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may be the coup to rising gasoline prices and let's begin with bob on today's markets. robert >> and the important thing, tyler is right near the highs of the day, three to one advancing the declining stocks this has heldz up. no wild swings and it's been a nice, steady up day. here's the key tech stocks are leading and apple has been on a wild ride. remember it was 149 back on tuesday and it went to 134, and now it's back to 142 it's not quite a round trip, but that's a very big swing for the big stock that's out there, the biggest ones microsoft and alphabet and what's not moving is cathie wood and the ark stock and twilio and zoom and we get another couple of updates they'll start picking on this, as well i'm just making an observation about how these tend to work, these tend to rally how things are moving to the upside

banks are having a good day and j.p. morgan had increased the net income projections and the ceo jeremy barnum making positive comments and unusually low level of credit card charge-offs and consumers are still very strong here and there are a lot of stocks trying to bottom the debacle with consumer staple stocks last week i had been 25 years since the stocks correspondent i don't remember a day when procter & gamble has dropped 6% in a single day and it went from 155 to 140 in a couple of days and now it's 145 again, this is an attempt to bottom here with those consumer staple names so far things are looking good here and the volume on the moderate side and not heavy buying and not heavy selling >> thank you very much >> now to the bond market and the yield on the ten-year is holding steady about 2.8%. that is well below the high watermark this year of 3.1% hit just about three weeks ago and

the two-year at 2.6% and the yield on the 30 year is just above 3% and there you see the 10-year at 2.86 and pressing in on 2.9%. energy complex closing for the day on nat gas and pippa stevens is all over it for us. hi, pippa. >> steadily climbing higher throughout the day and it is up at $8.77 per mnbtu mizuho attributing it part to powergen rag since coal prices are also at record levels. more muted for oil, we have recession worries weigh despite an outlook for higher demand and the wti is flagged at 110.28 and at 113.31 and the sector is

hovering around its highest level of 2014 and our performers include marathon petroleum which trade an all-time high as well at exxon which is at the highest in six years and btig noting that the sector is 30% above its 200-day moving average which is the widest it's been in the last two deid decades and they expect some reversion >> an interesting point to points to, pippa, thank you very much let's stick with energy as prices continue to rise across the u.s. with the national average above $4.06. the international energy has a warning unless we see big production increases the only hope we have to avoid big trouble in the oil markets this summer is weak chinese demand. with us and paul sanki, lead analyst at sankey research go to see you. do you agree with what the iaea

administrator said which is unless, basically if china comes back online in a big way we've got a problem? >> well, i think china will be back in a big way because wow have the policy upgrade in october and they have to show something like the economic growth they promised for this year which is 5.5% gdp growths that was the target before the whole covid shutdown drama on the supply side, i don't know what the iaea is talking about if they can list five countries that can grow in production this year i would be very interested to hear what those five co countries are because they're not there. >> there is no prospect, or very little prospect, i don't want to put words in your mouth, of increased supply coming from the middle east, venezuela, iran, whatever, to help alleviate the price issues >> well, i mean, further, you

obviously have a long history of oil because venezuela has a producer and iran, i have no idea what's going on with the administration's dealings with iran saudi and opec in general and remembering that russia is a member of opec plus. they haven't met their 400,000 barrel a day increasing target for seven months and that's the whole group combined so you're left with the u.s. and canada we've canceled the keystone and in the u.s. everything we're hearing is that they're macked ou maxed out on labor and pipe and that's impossible to grow for us than they already are, so i don't know where the oil will come from. >> interesting point and a troubling one, i guess i would say. >> right >> west texas crude at brent at 113 and where do you think it peaks this summer and how soon >> seasonally, normally it would

say we peak at memorial day because that's when the refineries would be running maximum. we are short distillate which would be deeszel and short fall, zooer shore so we haven't been making gasoline. so i think we keep going higher from a consumer point of view, through summer and we'll then see because we haven't fully seen the impact of the rug outables i'm afraid wer at a concerning tape for higher. i think it will go higher. >> i thought 110 and 150 is the range and obviously, we're in that range over the course of the summer. >> 115 to 150 and we're at 110 now. global consumers i think particularly at the diesel pump if you're a track or if you have

an automobile with diesel do, as more focus goes to those distillates that you just mentioned. >> well, you know, you're short refining capacity in the u.s. which is a problem and you know, maybe the administration will lift the stupid ethanol requirement which doesn't make any sense. we're using 40% of our corn to make ethanol corn prices are off the hook chicken prices are off the hook. i would like to see better energy policy for sure because there are certain ways of alleviating this pressure, and one of the renewable fuel standard which makes no sense. you shouldn't be using corn to make gasoline at this point which is basically when we're doing. so we'll see there's a number of issues that can be faced and the reality was the market was tight before the russian invasion of ukraine and now it's crisis level and i'm very worried about hurricane season to be honest with you, in terms of if we would lose

capacity. >> thank you for your candor. thank you. >> paul sankey i hadn't even thought about hurricane season as a factor. at beaches across the country, debris washing up onshore, coming up, an person sick of seeing this happening to the beaches in her native hawaii and how she's using seaweed to fight this problem we're back after this.

plastic straws are out as more businesses try to reduce their carbon footprints and stop global warming, but some of the replacements, they're want so great. paper and cardboard get soggy reviews. metal -- but what about seaweed? cnbc's senior climate correspondent diana olick joins us now with detail and her continuing series on climate start-ups. >> we've seen seaweed as a substitutes for cattle feed and how about disposable utensils and it's renewables for plastics and this start-up is reaping the

rewards. >> at sunday motor co cafe in madison, new jersey. >> i would take this over a paper straw because this doesn't feel soggy. >> customers are sampling the latest in sustainable, biodegradeable and most importantly, non-plastic utensils a straw made of seaweed designed to disappear >> sea technology is a competitive technology to replace plastic at scale because it's high performing, cost competitive, scalable and regenerative so it's the most sustainable alternative to blastec on the market. >> laliware is a native of hawaii and says she was struck by so much plastic pollution on its shorelines that's why she founded the silicon valley-based start-up laliware technology mills it down, combines it with color, minerals and water the result, seaweed-based pellets instead of plastic these pellets are revolutionary because they can be processed on existing plastic machinery at

scale. that also means straws are just the start. cups and other utensils to come. so far, customers include the cornerstone restaurant group, the table at crate & barrel and the motor coat cafe. >> trying to do our part in our little community small business trying to make little impacts where we can. >> being bahhers include hl ventures and cityrock venture partners, geekdom fund and sinclair and the total funding to date just over $12 million. >> the company has $50 million in revenue from the straw alone so far and they expect to expand significantly now that the technology is up and running the materials are made in the midwest so no supply chain issues, swapping seaweed for petroleum is slightly more expensive, but apparently not enough to do turn vendors away it is clear investors are best

and that's why lolilyware -- >> what other products might come out of their shops? >> plastic cups and any other plastic cutlery so you can put them into the processing machine that makes all kinds of plasticware and make anything you want out of it, really >> thanks, very much diana olick. checking the nasdaq still down 25% this year. up next, we'll check on three big-cap stocks that goldman sachs says can weather the current volatile environment and our three-stock lunch is next and all of those three stocks are high rhtowerig n ♪ ["fly me to the moon"] ♪ ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond. to the moon?

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facebook's products harm children, in other words... stoke division and 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 it is time for our three-stock lunch. the glasses are ready. today, goldman sachs highlighting large-cap names that the company thinks can weather the volatile market. on the list, uber, which goldman says is poised to benefit from recovery in ride sharing meta's better than expected ad revenue and google search and digital ads. so how should you trade them i would say have a couple of drinks before you do let's bring in eva atos, chief investment strategist at

atowears thank you for joining us. >> thank you >> you say avoid, don't own, never have won't. why? >> we never owned it we're not buying it at this point because if it doesn't have strong fundamentals. this is a a company that's been minus since day one. it has a very high debt-to-capital ratio, above 1-1, and it's nowhere close to break even it's losing $3.5 billion a year, which is a significant amount. and also with this -- with the energy costs enough rising, the rebates that they're giving to the drivers are not enough to subsidize toward their increasing costs so we're seeing that the drivers are reluctant to drive and so they have shifted that financial burden to them it doesn't look like their business model is working in this environment. >> why do they have so much debt

and so much debt-to-capital, debt-to-equity other than financing their losses, what are they financing? >> they probably also are doing investments so it's financial losses, as you said, the main issue. their impact we're saying at our company the best investor is the market is using it because every ride, every uber eats, you're getting a better benefit as a user than as an investor so it's not -- unfortunately, it's not a revenue model that's sustainable. and in fact it has direct competition with lyft, which lyft has a better net income margin it has a net income margin of 23% compared to the 33% of uber. >> all right so on that note, eva, let's move along to facebook or meta. do you like that stock any better >> so of course we're overweight

in meta. we would subject that if you don't own it, buy. if you own it, hold or even add to it. the reason is that's a very well diversified company in a bad economic environment leadership is the most important trait we are looking at in an environment like this one because leadership is able to help these companies not only survive this bad economic environment but also thrive. meta is a company with the best net income margin in its industry of 31%. that's seven times -- sorry, seven times above the industry average. and so it's a company that's doing great, it's well diversified, it has a position in the metaverse, a great place to be. >> so question, if you like meta for all the reasons you described, i guess without mentioning alphabet specifically, but amazon, apple, netflix, some of the other mega cap tech names, microsoft, would

you be equally interested there or staying a little shy? >> not amazon because of the cost -- the cost increases they have when it comes to alphabet, that's again a company that we own, again, overweight because it's very well diversified you use it every day, every hour even so it's a company with the biggest revenue growth in the industry 37% revenue growth again, a leader. and when tech comes back, when which we believe it's about to come back. so for instance where the decline volume was significantly higher than the advance volume, during the last 20 years when that happened, six months after, the markets were higher, in some cases much higher. when the markets come back, tech will come back the strongest

these companies with very strong fundamentals will benefit. >> let's move on to google where you have a somewhat similar to take which is to say if you own it, hold it. if you don't, consider buying it and you're attracted by the net income margin among other things here at alphabet. >> yes, definitely so it's a company that it's very well diversified, very good business model, again, a leader in the space why we like them is that in a tough economic environment, companies that are leaders are able to take markets from the companies that were struggling and so it's tougher for newcomers to join the sector and their revenue growth can help them continue to be the leader in the future. so that's -- we're not seeing any changes in their leadership position in the future in fact we think that in a bad economic environment, they might get market share from their smaller competitors. >> all right, eva, thank you

very much. we appreciate your time today. thank you for walking us through those three stocks, uber, meta and alphabet. >> i think that's two drinks maybe she would drink, one of them skip. up next, there's a nearly 80, 8-0, percentage point gap between the best and wstor performing sectors year to date. we will dive into that, next

you know real chili never has beans. you know a cappuccino is for the morning and an espresso is for the afternoon. you know which pizza is eaten with a fork and a knife... and which one is definitely not. the delta skymiles® american express card. if you travel, you know. welcome back, everybody. you don't see this often you don't often see a sector up

50% on the year. you don't often see a sector down 30% on the year, tiyler, an you don't often see a gap of 80 percentage points between the best and worst sectors and it's only the end of may. >> and you haven't seen energy on this kind of run in many, many, many years when you consider consumer discretionary, two-thirds of the u.s. economy is consumer spending, so that is telling you where the feelings are i guess i would caption this chart by saying what goes into oil and gasoline spending is coming out of the pockets of people who would otherwise spend at the dollar store or nordstrom or macy's or whatever. >> perfectly encapsulated. by the way, amazon is probably the biggest component of the consumer discretionary index, down year to date. this is exactly why. we see them shutting some of the warehouses that they opened during the pandemic. we see this reset in consumer goods. that's why james told us at the

top of the show he thinks it's the biggest mega cap tech pick >> he certainly said that and paul sankey said 110 is the floor for oil. 150 the peak this summer, get ready, buckle up. >> boy, if that's true, the impact on gasoline prices, another record high today, around $4.60 a gallon nationwide, means it's going higher his warning about the hurricane season, watch refining capacity. if we lose more of that in hurricane season, you could see pump prices go even higher. >> there you see it right there. it's been a little higher a couple of months ago in march when it went up and spiked there but 110 is nothing to take much of relief from, particularly if sankey says it can go to 150 from here. >> by the way, he thinks it will go to 10% of the s&p, taking share from technology, consumer discretionary and those other sectors. >> let's remind our viewers that

you can listen to us on the go the power lunch show cast is available where you get your podcasts you can listen there, you can follow and we highly recommend it. >> throw us a review what are the podcasters always say? thanks for watching "power lunch," everybody. >> "closing bell" begins in just four seconds stocks broadly higher to kick off a new trading week with the dow up more than 600 points as we head toward the close. the most important hour of trading starts right now welcome to the closing bell. i'm melissa lee in for sara eisen who is on assignment in davos. let's take a check on where we stand. the dow jones industrial average surging higher, helped by jpmorgan, goldman sachs, walmart. jamie dimon rally. check out the s&p sector winners today. as i mentioned led by strength in banks, following optimistic comments from jamie dimon at the investor day energy not too far behind,

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