from the saudi golf fund to do this >> the issue is what really is the saudi goal for doing this? and is this a short game or a long game. >> if the purse is $25 million, that's double, roughly, what it is on the pga tour >> right >> there is some money that is not worth making or taking this is blood money. >> that's why this is so controversial. >> dom chu, thank you. >> thanks, everybody, for watching "power lunch. thank you, kelly and tyler first trading day for june shaping up to be another volatile one the most important hour of trading starts now welcome, i'm sara eisen. where we stand in the market, coming back a little bit here. the dow only down 121. this does not tell you the full picture. we've been down 400 today. up 282 today some wild swings you have the nasdaq outperforming, only down about a quarter of a percent, and the s&p down 0.4 financials and health care are

your weakest sectors right now take a look at the heat map. what's working today, energy and technology for a change. those two not usually at the top of the market. you have good results from salesforce and hp fueling the tech trade it's also helping names like microsoft, cisco, solar edge, all higher today along with energy stocks. coming up we will discuss the outlook for the volatile market with ida liu of citi private bank, one of the most influential woman voted by baron's. mike santoli, a look at momentum shifts in the market for the first dashboard today. what do you mean >> sara, the definition of momentum always changes based on what's been working recently here you see over the last three years the fate of momentum which is basically what already has been the strongest stocks. will they continue to perform well well, yes, they surged off of that late 2019 low into -- this is, of course, the peak of the

growth stock and basically excitement for the tech stocks that were already very strong. that huge momentum breaker this is etf relative to s&p value. momentum versus value is one of the keys the market travels on we're pretty much back to the lowest levels of momentum we've seen in a while. what's going on? the momentum etf run has rebalanced its holdings every so often and just did so. again, the biggest net purchases of this etf over the last several days what you see is health care now the biggest sector more than doubled its rating from january to now, 11% to 23% energy trickled its rating and consumer staples quadrupled its rating and that's altogether used to be these were 20%. now all of these defensive/value sectors are more than half of the etf. the question, sara, whether latching onto these groups as

they've realized maximum outperformance or if this will be the mode of leadership for the market as a while. only energy is distinguishing itself >> momentum is now defensive >> exactly >> and it's not working as well. is that the bottom line? >> at those lows it's shifted into a new category of stocks. not because it hasn't worked well but they rebalanced tech halved its rating to below 17%. >> people have derisked, right >> yes absolutely there's a massive whipsaw in the market in terms of what people feel can work in the environment. >> mike, stay with us if you would. more conversation here about what to do next. the latest headlines from th fed. the beige book out an hour ago here are the highlights. three districts reporting price increases on goods and services have moderated that's a sign inflation may be easing second, a cooling demand in residential real estate was driven by higher mortgage rates

which created affordability issues for many potential buyers and then lastly worker shortages continue but there are expectations labor market tightness could ease let's bring in cnbc markets commentator mike santoli some changes detected in the beige book, which gives a lot of good color for what's happening around the country i would note some easing of demand especially in new york, softening of demand. do these changes have implications for the direction of the stocks? >> yes, so good to be with you again, sara. one of the things we have focused in on are the financial conditions like interest rates and volatility and the dollar. they have tightened this year in five months as much as they did in the 18 months prior to the last time the fed was hiking rates back in 2015 so we should be seeing stuff like this start to inflect

the key, and you mentioned inflation is starting to ease, is just how fast inflation will be on its way down some of the things we're focused in the direction of stocks, confidence, longer term expectations remain very well anchored at 3%, and also the one-year forward looking tips market shows inflation at about 4.7% all we know now is that cpi, the last cpi print was 8.1 that's all people know now but both sentiment and market indicators are showing that inflection point last week we had a little bit of a blueprint of what we need for a bottoming in stocks which is the move index, a measure of interest rate volatility coming down that is really the key here. and then today, what are we seeing it's a jump and the stock market gets some jitters. >> going the other way >> too early to call the bottom in stocks here because of how big the tail risks remain in a world where the fed is tightening into slower growth

and we're somewhat sensitive around margins coming in a little bit corporate credit remains a nice place for us to buy some time and some yield in the market >> and we should note, phil, after you came on this program a lot saying you were still bullish on stocks, you recently did change your tune are you underweight now? >> yes slightly underweight but not far from home, sara. what has made people the most tense this year has been a ten-year note to 3%. in that environment that's caused growth stocks to massively rerate however, it's hard to make it if what drove stocks lower was this massive jump in rates. that's priced and now the fed is on their way, move 50 in june, 50 in july we'll see what happens in the mid-term elections we're not at thepoint we want to get too far from home on stocks just too early to go overweight right now. corporate credit is a better place for us in a risk/reward standpoint >> is that the key, mike, if there are increasing signs that

inflation is moderating, that's a buy for tech stocks and broader market that's been hit on fears of fed hikes? >> it should be that main element of support for the market, yes. now i think we have to quibble over the fed's definition of what convincing evidence is of a sustainable decline. >> 50 basis points on the table until we get that down to 2% >> and that's the key. you coulding bullish and be correct about the fact that inflation is going to be trending lower toward target and still not really know and have confirmation, have the policy reflect that for a few months right now. the market is in a tentative state. last week, a fair distance into saying that a lot of the valuation compression, the work has been done to some degree on the down side. you have to see how the path of earnings comes through you're not going to have that kind of all in, let's grab for risk again response unless you have that. >> just one thing that really

made me say whoa was the comment from jamie dimon i'm sure you saw it today. brace yourself for a hurricane it was back in 2015, early 2016, the s&p was correcting down 15%. and guess what, dimon came in and bought stock and that boosted confidence. remember, we called it the dimon bottom to hear him say he's down grading from storm conditions to a hurricane, phil, it seems a little ominous >> as a rangers fan i thought the rangers took care of the hurricanes last week, but this is something that we're focused on, the tail risk. jamie dimon is the boss. he has -- >> we can't disagree with the boss >> at the same time that's the reason, sara, we're not overweight stocks. i wish i could come on and say this is it go buy stocks. it's not that time because of the risk of an aggressive fed into slowing growth and, by the way, the ecb is moving, the bank of england is moving this is a global story that

prevents us from getting too bullish on stocks at this point. >> down 87 points. phil, mike, thank you very much. michael, see you in the market zone tomorrow a lot more talk about the fed and its next policy move with an exclusive interview with the fed vice chair lael brainard, her first interview since winning senate confirmation for the role, 10:00 a.m. tomorrow on "squawk on the street." it's been a rough six months for sunnova which has underperformed the rest of the solar industry up next the ceo outlines his strategy for turning that stock around

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continuing to improve here, communications services just joining tech and energy in the green. there's the stealth mover of the day tempur seely piper down grading to kneutral o overweight to $28 from $36 citing disappointing sales over memorial day week. the stock down 5.4%. energy prices are soaring from oil to natural gas t electricity. that should be good news for players in the solar space as the higher costs willhelp hold on to existing customers and entice new ones. shares of sunnova are down double digits. joining us is the ceo john berger welcome to the show. what accounts for the underperformance given the fact we are seeing electricity and gas and oil prices so elevated

>> thanks for having me, sara. i think it's a misunderstanding by the market about the fundamentals of this business. we are an energy company and our competitors are energy companies. natural gas is soaring, oil soaring. and everything that we do is moving up and to the right for instance, we had our biggest day in sales in our company's history just yesterday everything is moving in the positive direction we're not an internet or tech company. >> just yesterday. thank you for breaking that news on our show. why is that? why are you having record breaking sales right now >> the single best thing is to sign up for solar service. you can lock in energy prices for the next 25 years. we all know and have seen utility rates are skyrocketing and will keep moving up as we

move forward in the course of the year you can lock those rates in. now with electric vehicles you can lock in the gasoline at the pump that's all going up as you just said and we continue to be very bullish that the price of crude oil continue to move up as well. this is the best thing as consumers are flocking into our space and we're trying to get that service set up for each homeowner as fast as we can. >> aren't your prices rising as well you've faced inflation, haven't you? >> we have and everything has moved up with the ten-year treasury and some of the equipment has moved up in cost some of the tariffs and things that have been done by the administration has not been helpful. but, with that said, we've been able to raise price again as recently as the last few days increasingly to make up for the

higher costs and we will continue to do so as we move forward in time. if you're a homeowner and have some relief from the very, very high and getting high utility bills and the prices at the pump, i would get signed up fairly quick here. >> what is going on on the tariffs? i feel like the biden administration was supposed to be your best friend and there was the build back better plan and the subsidies and none of that has happened. you have the tariffs which is crushing your industry, as i understand it. can you explain what's happened there? >> there's a big difference, sara, between solar and what we do behind the meter, so to speak, for homeowners. to be clear about it, we are somewhat sheltered from some of that tariff issue but not entirely we have an ample supply. very disappointing in what's happened you couldn't have predicted it

but certainly getting involved and putting tariffs in place and tariffs have never worked in any government anytime in human history. we keep trying them and they're not working at all we need to get away from them so the consumer can choose and that's the interesting thing about solar. he went on the side of solar and said i'm not going to raise utility bills on floridians and will not take away the only competition floridians have to these high utility bills, which is solar so we have to get government out of the way solar for your home is xroe competition, and it's something that is much more pro-consumer than a monopolistic utility who has nothing better to do than continue to raise rates. >> i never thought i would hear

a solar ceo praise desantis and bash the biden administration. you think about it the other way around when it comes to the renewable industry >> people often do but i'm sitting here in houston, texas, and i can tell you this. solar is pro-market, is pro-consumer, and it's something we have to continuously get the message update this is something that's good for people we want more competition so people can choose. there's exciting new technology. there's a whole lot of things going on that can give people relief to high utility bills and high gas prices. we have to get government out of the way and governor desantis made a big move in that direction. >> john, quite a statement thank you for joining us >> thanks for having me. >> the market likes it john berger of sunovva the market down 74 points. the s&p down about a quarter of a percent. a few groups turned green in the last few minutes utilities now joining

communications services, technology and energy. staples, financial and health care at the bottom the nasdaq is about to go positive you have strength in some of the mega cap techs weakness yesterday amazon is up 2.5%. data dog, some of the names all higher still ahead the global head of citi private bank ida liu on whether clients are buying back into this market after a rough start to the year. check out some of today's top searched tickers ten year treasury note yield takes the stop spot tfollowed b salesforce amazon up again. tesla is lower by 1.5% the s&p 500 is down a quarter the s&p 500 is down a quarter percent. this is doubling production without doubling headcount.

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pride month kicking off to celebrate the lgbtq community, many companies on wall street is

sponsors large pride events, but turns out they are donating millions of dollars to state lawmakers behind those controversial laws such as the so-called don't say gay bills. the details and a little hypocrisy ylan >> reporter: celebrating pride shouldn't just be a branding opportunity. that's the message from the progressive think tank data for progress after they looked at political donations by the biggest companies in america it found fortune 500 companies have contributed $2.8 million to politicians in six states who backed don't say gay bills many of the same companies are sponsored pride events across the country including at&t, state farm, fedex, amazon and our own parent company comcast fedex, amazon and comcast did not comment. at&t said it donates to lawmakers who support gay rights state farm said it doesn't

contribute to any politicians but its employees can. however, data for progress said polling shows corporate reputation does take a hit when political giving doesn't match pride messaging. sara >> i feel it's sort of a new issue for companies to have to go see where they're giving ever since the disney blowup, and that really is what called a lot of attention to this maybe they have to play catch-up here >> reporter: that's right. i think the political risk is real on both sides you saw what happened in florida when disney came out against the don't say gay bill republicans there took away some of those special privileges disney had enjoyed the left also saying, hey, we're looking at your political donations as well. and if you don't live up to your messaging, there is a risk your consumers and customers might leave. notable, sara, that the seattle pride parade group actually severed ties with amazon because of its political donation. so the groups are hitting them

at their bottom line and also in their home towns >> ylan, thank you ida liu tells us where her clients are putting their money to work in this volatile environment as stocks pull back. the dow down about 53 points some resilience as jim cramer noted. resilience late in the afternoon is bullish we'll see if it holds. think he's posting about all that ancient roman coinage? no, he's seizing the moment with merrill. moving his money into his investment account in real time and that's... how you collect coins. your money never stops working for you with merrill, a bank of america company.

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it's been another volatile up-and-down session, markets into the red off the worst lows of the session. ida liu, the global head for citi group private bank, named one of the most influential women in finance by baron's. >> it's great to be on with you, sara >> you oversee billions of dollars from private wealthy people >> i do. >> what is the level, would you say, of nervousness or bearishness from your clients? >> investors are concerned about the three rs, russia, rates and a potential recession. we are making sure we are making strategic allocations in the clients' portfolios to reflect some of our views around that. so for example, invs.ors portfolios you see a high level of cash balances >> how high?

>> between 15% and 20% when you think about the fact inflation is at 8.3% 40-year highs, you're making next to zero on those deposits, a negative return on your cash balances so we think there is an opportunity to add some value there by looking at fixed income we do think bonds are back look at the ten-year treasury. it's doubled since the beginning of the year at 3%. and municipals for u.s. taxpayers, a yield of over 7%. so those are really interesting yield enhancement opportunities to add and replace cash in clients' portfolios. >> instead of go to cash, since you're bearish, go into bonds. and, yes, we have seen bonds come back a little bit the last few days they've sold off and ten year is back near 3% >> well, they've sold off. however, we look at the yields on very high quality bonds like municipals and, as i said, intermediate portfolio yielding over 7% is very attractive,

something you should be considering as a cash alternative. in addition to that if you look at your equity exposures we like some industries like health care we like health care. we continue to like health care. >> because it's defensive? >> it's defensive, value oriented, high dividend paying we like certain sectors in health care, specifically if you tlook at drug discovery and what we've been through the pandemic. i think really interesting plays there. telemedicine, personalized medicine, a lot of opportunities in the health care space couple that with commodities as a geopolitical hedge in the portfolio is important as well and lastly i would say technology, specifically cyber, is going to continue to be an area that companies invest in, continue to invest in, as everybody is thinking about security for their companies going forward. we think cyber will be another interesting play and something that should be added strategically into clients' port portfolios >> not software, not some of the other sexier parts of technology which have gotten beaten up here >> they've gotten beaten up.

we like cyber, ai, some of those themes really driving future growth in the technology sector. >> we've seen such a tremendous move. >> we think commodities have room and there's a place for that to help hedge, as i said, some of the geopolitical risks that we're seeing around the world. >> are you growing the business in this kind of volatile environment? do people want more advisory work, or is it the opposite? >> sara, that's where we have the most value is in markets like this. a ten-year bull market it's starting to become choppy and volatile that's where we have the most value because we are if ifiducie for our clients, withstand many decades, many generations for their families, for their kids, for their grandkids. it's really helping them be prudent fiduciary managers and a very well diversified asset allocation >> you used to run the north american business. now you're doing the global business where is the most growth happening as far as those very

wealthy family businesses that need you to manage their money >> we see growth in pockets globally we're the most global private bank in the world. we opened our france and germany offices. 20 countries around the world, 52 cities. obviously we still see lots of pockets of growth in europe, asia and north america as evidenced by our global footprint. so the wealthy are global and we continue to invest in regions where we see a lot of the growth opportunities. >> do you see different risk tolerances in different parts of the world right now,or is it pretty much -- >> it depends on families and their specific views we have some that are very risk averse and some very risk to rant it just depends. >> are you telling them to brace for a recession? >> well, we hope there will be be a softer landing. we think there's about 200 more basis points of rate hikes ahead, and let's see if there's a softer landing we did have a 1.4% decline in gdp last quarter

we're estimating we will end the year closer to 2% growth, and we're hoping for a softer landing, factoring in a probability of about a third for recession early next year. >> what about when to buy. what sort of things do you look for when you tell them, okay, time to get out of defensive mode and take advantage of some of the opportunities out there what do we need to see >> one of the most important things we all know being fiduciary asset managers, you can never time the market. let's not forget that prepandemic levels were still up almost 30% even though we had this decline year to date 15% hit to the s&p but that doesn't mean we completely course correct. we make adjustments, as i talked about earlier, with the tactical moves i was mentioning with some fixed income additions, some of the industries we were talking about. one other area i would mention to you is alternatives i think alternatives are very attractive -- >> private equity? >> private equity, direct and co-investment deals for family

offices around the world very attractive opportunities there particularly as investors are willing to pay that premium in markets like this where it's harder to find those types of returns and yields >> gets you out of the day-to-day swings as well. ida, thank you great to talk to you >> it's great to be with you, sara >> the head of private wealth at citi group don't miss an exclusive interview, more on the markets and the fed and the interest rate hikes with vice chair lael brainard, her first interview since being named vice chair of the federal reserve tomorrow 10:00 a.m. eastern here is where we stand now heading into the close we dipped lower, down 90 points on the dow s&p down.4 technology and energy are still hanging in there energy up 2% utility is green everything else is lower banks and staples are really the hardest hit down more than 1%. jpmorgan ceo, jamie dimon, warning investors to brace for an economic hurricane.

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breaking news, big change at meta julia boorstin with the details. julia? sheryl sandberg, the longtime coo of meta, the company formerly known as facebook, announcing that she is leaving the company. she's announcing this in a very long post on facebook. sheryl sandberg writes in this long post on facebook sitting by mark zuckerberg's side for these 14 years has been an honor and privilege of a lifetime. she talks about working with mark over the years calling him a true visionary and a caring leader she talks about how she expected this to be a five-year role, did not expect to stay there for 14

years. and she goes on and on and talks about all the different people she had the privilege of working there. and then she -- and she talks in many ways about what she is so proud of in terms of what the company has accomplished but she says in terms of her future and why she's leaving, i'm not entirely sure what the future will bring, but i know it will include focusing more on my foundation and philanthropic work which is more important to me than ever given how critical this moment is for women she talks about how she's getting married this summer and parenting their expanded family of five children will be in focus. she says over the next few months mark and i will transition my direct reports and i will leave the company this fall i still believe as strongly as ever in our mission and am honored to serve on meta's board of directors so lots of thanks, lots of commitments to working with mark zuckerberg sheryl sandberg will be staying on meta's board and working in

the transition to replace her before she leaves in the fall. >> julia, watching the stock price, it did take a dip lower on the news, down about 3% it's coming back a little bit. it doesn't sound like there's any indication this is coming about as a result of the massive changes we're seeing inside facebook, not just changing its name to meta but its focus to the metaverse and to video after losing share to places like tiktok and wall street and investors frustrated with the performance the last few quarters >> i think there's been a massive slowdown in growth no question that's what the stock price reveals. questions how the company will manage this transition to focusing on the metaverse, how long to generate revenue from that in her very long post here, it seems it's not about that.

she's proud of what she accomplished and stayed longer than she expected. sheryl sandberg was and continues to be the business mind here at facebook and the way she and mark zuckerberg collaborated they were known to have this partnership where he focused on the product and she came on cnbc many times and did interviews with me and talked about the advertising business and making sure they were building a sustainable business operation there. so it seems based on her commentary this is something she's been thinking about for a while but this is certainly a company in transition. we've seen a lot of turnover in the top management roles certainly this is the highest profile person to be leaving the company. >> right she also had some of the government political chops as well, having worked for former treasury secretary larry summers. she was the chief of staff implications for the stock and in general how meta has held up

during the bout of recent vola volatility >> it was surprising to me the machine sold that headline pretty hard. the stock went down 4% on the headline seems with the fleshing out of the rationale, a bit of color around it, it's recovering some of that. 14 years, just in the abstract, is a really long time to have a top two job at one of these massive companies. there's a way to paint -- >> it was the best of times for facebook >> and we're into the hard part, long into it not just fortter dorsey is gone from twitter. it does seem as if there's a generation of tech leaders and founders saying, you know, maybe the easy part is over and let's figure out what i want to do it seems a fairly personal decision she was considered to be a good set of managerial hands from the business side at the top of meta i'm not sure if right now that's really the swing factor for this start. >> mark zuckerberg's leadership

hasn't been in question. he still has control >> exactly >> voting control. >> voting control. unless something major happens that will be the case for a long time >> with meta shares recovering but still down 2.6%. delta shares, grounded despite raising revenue forecast the ceo weighing in on that improving outlook straight ahead. that story and a rough day for buy now/pay later stocks we'll take you inside the rkmaet zone the dow down 35.

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at adp, we use data-driven insights to design hr solutions to provide flexible pay options and greater workforce visibility today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ we are now in the closing bell market zone cnbc commentator mark santoli

here to break down the trading day plus meta's big shake-up just announced moments ago and phil lebeau on delta we'll start off with the volatile day for stocks. just another 700-point swing from low to high stocks are climbing a little bit here into the close but major averages are still in the red. the dow down more than 400 points at the low of the day up almost 300 at the high, now down about 38 points or so. salesforce is doing well the best performing stock after better earnings. the second day in a row we've seen some resilience into the close. what does that tell you after the 6.6% gain for stocks last week >> that, to me, is the main inference. most stocks are down today as they were yesterday but it's mostly digesting a very big move off the lows from may 20th both days the markets seemed to decline, a chance to really get some down side momentum going at the lows of more than 1% below the prior close.

it seems as if a little bit of stability has filtered back into now. >> energy also popping 2%. more than the underlying commodity with oil prices higher by 0.4%. meta shares sunk after sheryl sandberg announced she will be stepping down as coo this fall, coming back a little bit here. let's bring in rosenblatt security analyst barton crockett the right reaction for sheryl sandberg leaving >> right this is the definition of instant reaction i'm just hearing about it. sheryl sandberg has been one of the key executives, the key architects someone who was a bright, shining light on ad sales and the strategic approach in that way it's a loss. i think on a personal level i think her husband passed away, first husband passed away. she's getting married again. we've been through a pandemic.

business is going through a big transition on a personal level i think it's very understandable. that's a company filled with talent so i expect she will be replaced i understand a little bit of uncertainty because she's been a very strong executive for them >> how are you thinking about meta right now given that it is in the middle of so many transitions and the market has turned on names like this. >> right i have a neutral rating on meta. i launched on april 19th along with the broader group and i am concerned about the slowdown and the top line i'm concerned about the privacy changes, i'm not a believer it would generate a return on that that's investable. i've been cautious stocks have been supportive of the stance

>> down 44%. >> at some point we'll look for the fundamentals to stabilize, one would hope the biggest issue they have they're losing, i think, audience on facebook, the platform, the signature platform not clear that transitions generationally i don't want to run into that though there are a lot of fans out there. i'm not among them today. >> is leadership an issue? is that still the case as we have seen the shifting winds of winners and losers in silicon valley they still have a deep ben much? >> you talk to advertisers and will tell you facebook is really strong in advertising, and they do have a controlling shareholder in mark zuckerberg i think there are strategic choices like the expansive investment in metaverse and some of the combative stances around

privacy and their stance with apple. that's where you could question, i think, some of the choices, but it's like whistling in the wind it's not going to change below the zuckerberg level, leadership very strong >> julia boorstin, a reporter covering the story, joins us with some more color what else have you learned >> well, in mark zuckerberg's facebook post about sheryl sandberg leaving zuckerberg thanks her extensively and lays out the new management structure and reorganization of how the executive ranks will work here he specifically appoints a new coo. it's javier olivan this is going to be a different kind of coo role zuckerberg says that sheryl has built an amazing legacy, but he also says i don't plant to

replace sheryl's role in our existing structure he also says meta has reached the point it makes sense for our product and business groups to be more closely integrated rather than all the business and operations functions organized separately from our product. he lays out here in this post on facebook the different ways he's going to have the chief business officer report to the coo javier olivan so groups will be closer to the meta business group this is interesting, sara. this is a company trying to reconcile the different parts of its business as it works to the metaverse future and struggles with slowing revenue growth. >> julia, thank you. barton crockett, real-time reaction to the shake-up and in the way he's realigning the executives to match the different businesses is a little different. >> it is a little different. i think it does certainly sound consistent with the change in

business focus for there to be a change in management structure i think that this is an tune, a slowdown, a strategic pivot where zuckerberg sits back and rethinks who do i want as my team who is in for the tough fight ahead? and i think that's what we're seeing the fruits of that internal kind of analysis and thought process zuckerberg is going through. >> where are investors, barton, that you talked to your clients, where are they on the metaverse and meta there was a lot of hype for it but then the fed started raising rates and a lot of air came out of the stocks especially meta. how much tolerance on this project changing the entire focus of the company away from the traditional model of ad sales on facebook? >> right, right. it's very interesting. i talk to people who are

believers. i'm on the more skeptical side of who i talk to but the stock acts like my view is more dominant than what i hear from clients. i do think what i think this will come down to is tangible proof they're doing something you can look at and put some earnings on. and i think the view on these types of explore as the environment toughens if we're moving into a slower economy less forgiving of exploratory. to his credit zuckerberg's rolling back spending, spending less than he signaled in reaction to the toughening business environment i think that helps people's comfort with things are at a responsible professional level i still have yet to see the

business case that says you can invest x and get y that would make me want to get behind it. >> not alone it is the second worst communication service, number one is netflix i was going to ask what you like better than facebook you're not too hot up 1.3%. had a big run yesterday. i'm looking at your note it doesn't look like you're too hot on that one as well. i guess the stock split coming up, if that's a catalyst it shouldn't mean anything different for the stock. what's your case there >> so for amazon, i'm also at a neutral. the only large cap is alphabet i think that alphabet is very exposed to secular strength in internet without the noise of the other names. at amazon, the noise is the slowdown in retail the retail business top line is

no longer outperforming and it hasn't been for the past couple of quarters and that raises questions about the competitive changes that have been built as the big box retailers have improved, click and brick, what does that mean and the cost pressures and the investment in capacity that didn't pay off the idea was build it and they will come from the pandemic at amazon web services is great. i think salesforce's data points are supportive of constructive view on cloud. the stock is down 22% since i launched the s&p is down 8% it's been okay to be on the sidelines for now on amazon. >> it looks like you like google with a target of 41.18 that stock is higher but is also down at least 20% from the highs as well. barton, we have to leave it there. thank you very much for joining us especially bearing with us on

the breaking news and weighing in mike, just as you talked about the resilience, we've taken a leg lower here, nothing extreme but down 150 on the dow. sal salesforce itself and the energy names doing well we're losing momentum here what are you watching? >> down another half a percent on the s&p, that's about what we were down yesterday, too a 9% rally still in the normal range but obviously things are delicate because we're not that far from the desperate lows, 11 or 12 days ago advancing volume is only about half of declining volume that shows you there has been a weakness in breadth. the treasury note yield is on the upswing, not at the highs of the year we got some relief on this and took a rate hike out for the out months and it's building it back in there with somewhat more assertive or hawkish fed rhetoric

i think there's a majority implied chance of a half percent increase in september as well as june and july at this point so we'll see how that tracks. so far the nasdaq handling it okay volatility index has eased back relatively narrow range today and hovering in the mid-20s area you're seeing it creating a floor around 25 on that chart. we'll see if that holds for a while. have not made a new low back to 20 since almost april. the first day of the month of june kicks off with more selling. nothing extreme and it's calmer than we saw earlier in the session. we are down 0.7 on the s&p which means for the week we're about 15% off. the nasdaq holding up better today. that's thanks to some strong earnings from the likes of salesforce which, as you heard, helps the cloud companies. one of the reasons amazon is strong again today you're seeing strength in names like t-mobile, electronic arts,

a number of the tech names helping the nasdaq the russell 2000 faring better just wanted to point that out, less than half a percent the dow down half a percent, 167 into the close the s&p 500 losing three-quarters of a percent. the only sector to finish green, energy, up 2%. that does it for "closing bell." now to "overtime" with scott wapner thanks so much welcome to "overtime." you just heard the bells we're just getting started gamestop and chewy earnings are imm imminent and in just a little bit i'll speak exclusively to volatility expert nancy davis for the latest on where the markets are heading in this new month. we do begin with our talk of the tape, up, down, all around are we in store for a lot of that yet again in june josh brown is the ceo and co-founder of ritholtz management, a member of the halftime investment committee. good to see yo