steve, what about you? >> xpo filed confidentially on the spinoff of their technology enabled broker business. it will lock huge value as brad jacobs usually does. i would buy it here. >> i'll give you one last check of the market. we were just about at the highs of the day we'll see if that continues up until the close and i'll see you in a few hours "the exchange" is now. thank you, scott hi, everyone i'm kelly evans. ahead today the fed is squarely focused on inflation vice chair lael brainard says bringing inflation down is the number one priority. can the market weather a more hawkish fed this year, and what does it all mean for the economy and for the labor market stocks fell when brainard made those comments earlier we're bouncing back now, the nasdaq up almost 2%. is this just an oversold bounce or could the market prove to be a haven in these inflationary times? plus, we have rh, we have lulu

all reporting after the bell can't wait to hear from the ceos, rh in particular, of course, on inflation, the consumer and the dollar after microsoft's comments today first let's get over to dom chu with the latest on these markets. all kinds of potential micro economic company specific catalysts, kelly, to your point. the microsoft story we'll get to in a bit this is a driver on the day. session highs for the stock market the dow industrials up 195 points, just a hair above 33,000 right now, half of a percent the s&p 500, 4,145 a 45-point gain to get to that level. a 1% gain there. and the composite index, 231-point gain 2% there 12,226 i will point out on the broader based s&p 500 this is a big turnaround at the lows of the session we were down roughly 27 points and, again, up 45 now to give you an idea where the range is today. one of the best performing

sectors is materials and it's broad based with regard to what it is. it's metals and mining with regard to freeport up 6.5% fertilizer companies like mosaic up 4.5%. eco-lab up nearly 5% and then albemarle with regard to materials on the lithium and battery side of things up about 4% that's all carrying the material sector up 2.25%. watch that materials trade, again, some broad based across the material sector. the stock of the day, we mentioned before microsoft cutting their full-year earnings and revenue guidance due in part to some of the effects of a stronger u.s. dollar that's what they tell us those shares are off three-quarters of a percent. at the lows of the session, kelly, microsoft shares were down roughly 4% at one point today so this does represent at least some either short covering or value buying taking place right now. microsoft only off, again,

fractionally now, down 4%. we'll see if the trend continues and, of course, microsoft a component of the dow jones industrial index >> it's back up to 270 dom, thank you so much now higher interest rates are back in focus today following hawkish comments from fed vice chair lael brainard on "squawk on the street" this morning she says inflation has not peaked and the fed remains committed to tightening. >> how are policies transmitting through the economy matters a great deal to us we are very attentive to financial conditions right now very focused on inflation as our number one challenge and we're going to take the actions that are necessary to bring inflation back down. >> here with more reaction and analysis is michelle meyer, chief u.s. economist at mastercard economics institute congrats, michelle welcome. it's good to see you again the significance of this coming

from brainard is she was typically seen as somewhat more dovish, so what are the implications here? >> i think what fed vice chair brainard is really reinforcing the fed needs to rebalance the economy. and in doing so they're going to hike interest rates until they feel they have sufficiently softened demand and taken the excesses out of the economy that they feel they have a proper path to price stability. do they need to see 2% inflation? no they do have to believe they have this balance in the economy where they will be able to engineer a much more stable inflationary environment and they're just not seeing that right now. so the idea is to continue to march ahead until they see that really transmit through the economy. >> so when we hear her say inflation is the number one priority and we don't hear the emphasis on, for example, needing to make sure the unemployment rate comes down enough for all groups or all

those things wanting to let this run hot, what does that mean in terms of how many half point or quarter point hikes or the path of rates, what does that sort of imply relative to what the market is currently expecting, do you think >> i think the focus is on inflation because that's where you have this real indication of overheating. they feel like they've accomplished really what they needed to do in terms of the labor market, very low unemployment rate, very high job openings, lots of churn in the workforce which should be on tomorrow's jobs report as well and they've created process to equalizing the market as well. almost too much so in terms of stimulate that go demand and now you have this really high and broadening inflation environment. so i think what the market is pricing in, which is this really fast path towards what you might consider neutral rates to be, call it between 2.5% to 3%, is appropriate.

at what point do they feel they've done enough where they can take a breather? they're going to be reactive and see how the data plays out >> when you say she's sort of implying there's no case for a pause in september, do you mean a pause from half-point hikes or was the market looking for a pause in hiking entirely >> i think the market is looking for guidance of what point does the fed feel they've done enough, where they have the right level of interest rates for the path of the economy. i think fed officials don't want to promise there will be a pause. my read on what vice chair brainard said, yes, they can slow the pass. you don't have to continue at a 50-basis points cadence, but they will determine that when they see the data. it still is a fed that is trying to react to the high-frequency data and see how the economy and the markets are handling this normalization of interest rates.

>> if you look at the jobless claims numbers only 200,000 claims last week despite the intick in layoffs in tech companies. this shows no signs of an economy that is actively shedding jobs. the president himself in his op-ed said it would be a welcome step for the pace of hiring to slow from half a million to about 150,000 a month. and it continues to look like we might get numbers that are too strong on the labor market >> this idea excesses were starting to be created in the economy. when you think about what a break even jobs growth number is, it is closer to 150,000 a month and we've been running just over 400,000 jobs per month in terms of creation job opening rates are still very high, nearly two jobs for every unemployed worker. so the idea is not to crush the economy by any means

it's to normalize, to take out this overshooting, in a way, of economic growth and demand and generate this more of a sustainable post for economic growth i think the data as you highlight, kelly, is pointing to an economy that is strong and managing through these adjustments. >> we would normally have said, last decade, it's a good problem to have. then you see inflation and maybe it's not even. we'll leave it there it's great to see you again. thanks for your time >> of course, kelly. stocks have been holding up recently well in recent weeks managing to close out may with slight gains after a tough start. my next guest to put some rain on this parade is the senior portfolio manager at dakota wealth management. welcome to you, robert do you want to react to this discussion we were having about what we heard from the fed today

and the path of rate hikes how does that play into your remarks? >> my interpretation of brainard is the fed doesn't know where they're going with interest rates. they're trying to figure it out as much as the street is i think if you keep that in perspective you'll understand why the market is going through this volatility. you see fed funds at 1% and you look for some kind of comparison and see the cpi was around 9% in 1975 fed funds back then were 5%, between 7% and 5%. there's a long way to go possibly to get this inflation really under control to where the fed feels comfortable. i don't think the fed is that committed to sending funds between 7% and 5%. they probably are thinking in a range of somewhere between 2.75%

and 3.5% that's my assumption they don't know if that's going to be enough the problem is all this liquidity added to the system. that's why we have the inflation. russia has certainly done a job on us with invading ukraine. as far as the market is concerned, i mean, we rallied off oversold levels. we got to essentially a full bear market down 20%, at least interday, 3,900 on a closing level. i think we're seeing a bounce. people are looking for a long-term opportunity. this may be an opportunity to get back in, but most retail investors will not have that commitment to stay with the market when we test 3,900 and break it to the down side. i think you have to focus on

quality. quality companies that have various entry. good, solid balance sheets that's the key to the market >> high conviction we're going back down to 3,900 and maybe below it three names you've been buying are halliburton, walt disney and altria are those the only three >> no, but the most recent three. i bought disney around the earnings report. the stock came down. where it's trading now you're getting streaming for free the stock trades at 21 1/2 times. altria, 10 1/2 times, usually trades at 12 1/2 i have a $60 price target, almost 7% dividend yield i think it's very safe halliburton, i think what you're going to see is a change in congress, a more energy friendly congress and that's going to help more drilling in '23 and beyond

that stock tradesat 18.5%, $48 price target 17 1/2 percent on that particular stock >> three tactical ideas for a market that could continue to move sideways. robert, thanks for that. we'll check back in soon robert pavlik. adp was a miss showing the slowest jobs growth since the start of the pandemic but the track record isn't all that great. up next the results of cnbc's all-america workforce survey as we gear up for that official report tomorrow morning. the trio of firsts on earnings exchange today asana's first. rh's first report since its stock and comments from the ceo. and lulu's first results since unveiling its five-year plan to double sales we'll tell you what wall street is expecting ahead on "the exchange."

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welcome back cnbc is out with a new all america survey taking a close look at the labor market this time steve liesman here with the findings steve? >> reporter: hey, kelly, yeah, everyone talks about the great resignation, the cnbc workforce survey finds there was a great reshuffle of the labor force as

a result of the pandemic a massive shift of jobs that still is echoing today in an effort to understand detailed changes in the job market, the workforce uniquely looks at 1,200 employed people, 400 people not in the workforce but not saying they're retired, and we also surveyed another 450 people who retired during the pandemic let me show you some results now. of those -- 28% of those who were employed were laid off at least once during the pandemic those not working, 50% those who retired during the pandemic, 25%. you can see those layoffs during the pandemic led to permanent changes, at least right now, in the workforce. in fact, those who say they retired after the pandemic and were laid off, 57% ended up retiring a respondent from wisconsin writing in, was laid off from the job. had 21 years called back then laid off again. i believed it was for good i was having health issues and

had a knee replacement so just decided to retire. i was 65 among the employees this is even more startling, 43% stayed at the same company 49%, however, went to new companies as a result of the pan defensemen k or during the pandemic year. 80% of the currently employed are satisfied with their salary. 70% with recent raises hold on, 60% think they can leave their job now and find another good one of equal job. it's unclear if the great reshuffle continues or if workers have settled down, kelly. >> steve, thank you for that steve liesman. let's get fresh data from recruiter.com showing i.t. and software jobs are still the most in demand despite the tech hiring freezes we've seen and hybrid and in-person roles are far outpacing remote

let's welcome back rec recruiter.com, evan, the most pressing issue for many. what's going on with people getting called back to work, the elon musk effect >> you know, my hat goes out to any company that sort of decides what sort of culture they want to create and i think part of the great reshuffle, as steve just said, or the great reevaluation, companies get to decide the culture on a going forward basis. and whether it's a bank that wants in person, whether it's a tech company that declares unlimited remote or only hiring remotely and we saw airbnb talk publicly about that, i think if the companies are getting to decide the culture and the talent that they want to acquire. >> but in here there are signs i mentioned elon musk. when he says i want people back in the office now or else you leave, are we seeing a similar trend at other companies

>> what's interesting we're seeing now hybrid and in-person outpacing remote 20% of the jobs are remote only. by the way, prepandemic, 9% were remote we're still much higher than we were prepandemic in terms of overall remote jobs. i think people are looking for -- the word we're using now, the expression is job mobility there's far more mobility for employees today. steve just said in the survey, i can leave whenever i want, 60% felt they could leave and find one of greater pay there's more mobility now. companies going in person or hybrid or that combination >> so overall what do you think the message is about the labor market is it more what adp reported which is a slowing or what the jobless claims data tells us which is full steam ahead? >> we think it's a very tight labor market

the increase in companies looking for recruiters is up pretty significantly that means they're having a challenge hiring you saw the challenge small businesses are having in hiring. the question is were they laying people off or difficulty finding labor? we believe they're having a hard time finding labor >> so that is good news but also bad news because it suggests while we're not seeing any kind of recessionary slowing the labor market is strong enough the fed will have to stay hawkish. the final remark here as we look at the changing demand for work, do you think it's notable i.t. and software is still the number one position where they're looking to fill roles? >> yeah, i was surprised about that myself. i thought that would have never gone down significantly. there's still lots of companies that are well funded and that need to find talent and finding

talent in the i.t. space is difficult. we've partnered with companies on a global balance. finding that talent is a challenge and they're turning to recruiters and other technologies to help them find that talent. that's probably why it's still remaining very strong. >> evan, thanks. still feels like a glimmer of good news even though it adds to our challenges or the fed's challenges evan stone, thanks for your time we appreciate it quick programming note, cleveland fed president loretta mester will join us tomorrow with her reaction to the jobs report that's around 1:30 p.m. eastern. still ahead crowdstrike and okta if cyber is supposed to be a safe haven why have the stocks been struggling? sheryl sandberg stepping down from facebook, now meta, what does that tell us about the future for the social media giant and what legacy does she leave? more gainers than decline terse.

boeing, the leader, surging 6% today.

welcome back let's check on markets which are near session highs, the dow up 185 points and that erases a 304-point loss top stock in the s&p today is solar edge after oppenheimer upped the name to outperform, expecting the industry to grow 3 to 5x the next decade. 334 price target, that's 25% upside it's up 11% of that today. and generac is the second best stock in the s&p today

we are familiar with this name by now it's up 10% after ubs named it their top pick in energy seeing more than 80% upside not because of the generator business we know so well they're pointing to the potential for smart home energy product line for more on those calls head to cnbc.com/pro i might need to check out their product line to tyler mathison for the news update thank you very much. and here is your cnbc news update this hour the u.s. transportation department is lifting the trump administration's flight restrictions to cuba following secretary of state an blinken. chartered flights from going to cuban cities other than hadvanaa the disgraced lawyer michael avenatti sentenced to four years for stealing from stormy daniels. in february avenatti was convicted of identity fraud for

pocketing $300,000 of daniels' 2018 book advance. and britain is holding four days of parades and pageantry to celebrate the queen's 70th anniversary on the throne. the unprecedented platinum jubilee represents a moment of light for the nation after two years marked by the pandemic and royal scandals full coverage of the royal celebration, tune in to "the news" at 7:00 p.m. eastern oh, by the way, if you watch a lot of nbc's coverage, kelly, you will see our friend wilfred frost there. >> which makes it even more enjoyable. still ahead consumers getting picky where they're spending money is that helping or hurting names like lulu and rh asana down 68% this year options are implying almost a 30% earnings move. what you need to know on all three is next in earnings chge

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welcome back to "the exchange," everybody a software company and two high-end retailers are reporting tonight. let's get right to the action.

first up is asana, the work software company is not yet generating names that's gotten hammered in the sell-off down more than 80% from the highs in its six quarters as a public company it has not once missed on eps or revenue estimates. here with the story on asana is our frank holland and david wagner with our trades welcome to you both. frank, what are you watching >> number one, kelly, a lot of excitement about this work management stock, up double digits along with other stocks in the same group. this stock has seen steady growth during the pandemic due to hybrid work, people working in different places. estimates are for a 36 cent loss, as you mentioned, not profit making just yet revenues of $115 million the metric will be customers and customer growth. estimates are for just over 124,000 customers, a net add of over 5,000 customers a lot of people see the pandemic winding down with many offices gently pushing their workers to

come back to the office or in the case of tesla and elon musk not so gently. the real question is are customers still signing up for their services, or do they still need these workmanagement platforms or are people coming back to the office and working face-to-face the second metric to watch, and i have to say this right, net-based dollar retention a fancy way to say your customers you currently have, are they spending more money if somebody is happy with your product they will spend more money with you if they're content, they will keep things study until they can find something else. if they're not happy they may find someone else. if they're able to grow from existing customers, a good sign of the stickiness of this company, of asana, something investors look for in cloud stocks, that keep going and going. >> net-based dollar retention. as annoying as they are i do like learning all of these new terms andin acronyms.

>> i'm probably not a buyer here we know asana have been a great growth story since back in 2020. investors focus on the competition. in early stage investing there will be a lot of competition what are we focused on now billing trends the company continues to talk about investing in growth for the future and that has been a successful playbook for unprofitable companies for quite some time. here lately that's been the downfall just look at the stock chart it may be up 15% today it's down a ton just this year we know that asana, they continue to disrupt the collaboration market i believe investors want better leverage, 90% gross margin awe need to focus on free cash flow and profitability.

>> well said you're leaving that one on the sidelines for now. >> absolutely. >> let's move along and talk about lululemon. the whole retail trend, the shares are down 25% this year but revenues are expected to rise 25% from last year. analysts watching any consumer trends and their costs lauren thomas is here with all of the details lauren, tell me about lulu what are your expectations >> yeah, definitely a highly watched name across the retail industry and they were a big pandemic beneficiary two years ago, a year ago we were all stocking up on comfortable clothing and stretchy pants more recently, as you mentioned, we have seen lululemon shares down 25%, falling with the broader retail industry. of course there's been pressure across the space this year i think in large part due to fears of softening demand, particularly among consumers

that have been shopping for some of these items that sold very well during the peak moments of the covid pandemic now lululemon, the company gave a forecast for fiscal 2022 when it last reported its quarterly results. the company is calling for net revenues to be up anywhere between 20% to 22% this fiscal year and for earnings to be between $9.15 a share between $9.5 per share we've seen a number of companies lower their fiscal forecast for the year, right, just in recent days, whether it's abercrombie & fitch or kohl's, we saw levi strauss reaffirm its guidance for the year it's been a mixed bag depending on how retailers are handling higher supply chain costs and, of course, inflation across the board.

lululemon laid out some five-year targets. this company is planning to double its men's business, online sales and quadruple international revenue all within the next five years. given this massive plan, this uncertain economic backdrop so we'll be listening for color is it on track to achieve those goals since it announced them and it sells shoes, has a retail platform, a membership as well that it's testing. a lot of initiatives at play again looking for the company to really follow through. >> david, quick take, what do you do with the stock and what about the footwear in particular >> we've seen increased competition. right now i don't think brands matter as much as they did ten years ago. i think the lulu story is about management and excuse and the necessity for continued product demand as lauren mentioned calling for

men's division to double and their international business to quadruple by 2026. that takes a lot of execution on the international side which doesn't have as metropolitan br much brand awareness there's a lot of execution and i'm skeptical. look what they did two years ago. hey, revenue growth close to $250 million moving forward. shortly thereafter they brought that down to about half that, $125 million i have a lot of skepticism, demand weakness could crush the stock. that's held up quite well here i think any high-flying name with high valuation is an area of thearket i'm just not playing in >> let's move on lauren, stay with us as we talk rh this one really set the tone a quarter ago. it's down nearly 50% as the high end retailer last quarter the ceo gave an extremely ominous warning to the market saying, quote, i don't

think anybody really understands how high prices are going to go everywhere i wouldn't call it happy days. i would call it pensive days be ready now since then we should point out william sonoma stock traded much better after their results. so what is rh expected to tell us tonight >> yeah, i'm glad you read that quote because a lot of those comments from the ceo gary friedman did go viral after the last conference call, right? and he was really lauded, i think, in many ways for being the first retail ceo to speak out about these issues ahead of walmart, ahead of target, ahead of that week we witnessed recently certainly a lot of folks, i think, will be tuned in to listen to what gary friedman has to say this quarter, even beyond the numbers that we see in the print. we have seen rh shares trade off, the stock down 45% year to date last i checked.

i think in large part because the company gave a more conservative outlook for the year so similar to lululemon, the last thing i want to call out is gary friedman has dubbed 2022 to be the year of new the year of newness for rh of course this is ahead of some of these issues, the war in ukraine, for example, that retailers are working through. the company had been on track to open a new hospitality space in new york its first location overseas in england. i think a lot of us will be listening for any changes to that plan. and if 2022 will still be the year of new or if that could be pushed into 2023 >> david this is a stock you might actually nibble on >> i may nibble here i'm a fisherman. i like that reference. gary friedman is vocal and cautious on the macro outlook moving forward he really tells it as he sees

it and this really creates a reason to own this name here in the short term maybe not long term. yes, you mentioned that bar. it's been set very low and that should presumably create an opportunity for them to deliver on these results the really big thing i'm focusing on here now, for the first time in quite some time the balance sheet for the company, they have $2.2 billion of cash on their balance sheets so they can go out and get some type of aggressive share buyback policy to the tune of 25% to 30% of the overall market cap. >> wow >> i think that's a lever gary would look to pull right now if you go back to 2017, he did that exact thing when the share was back at a $30 share price area and if he makes that type of an announcement this quarter or some time in the future, the timing is unknown, could get some type of pop in the stock if you get a short squeeze. the short interest in the name has doubled over the last year

to date from about 7% to 16% >> great points. there's the ten year and the three-year performance which is stunning given everything that's happened we'll leave it there david wagner, thank you. lauren thomas, thank you as well covering all things retail for us today coming up, meta shares got hit when coo sheryl sandberg announced she was stepping down yesterday. they have since recovered. just how big of a material change will her departure be next the nasdaq up more than 2%, moving throughout the teooafrnn. "the exchange" is back after this

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also a cnbc contributor. ed, i'll start withyou takeaways, thoughts, impressions? >> the main sort of frame we're looking, the adult in the room has now left the billing she's kind of let for a while. she's had this role for many years. in the last few years mark has consolidated his power and with others in the organization, so in a way it's not as surprising as you can see the market reacted in a muted way to her departure. a huge legacy. targeted advertising was a big thing she did at google and essentially invented or re-invented at facebook and these two companies really dominate the online ad market. massive legacy there it's a mixed bag, of course,

cambridge analytica, january 6, these are sort of blemishes on her record not a huge price. >> is that a good thing, alex? does this company need fresh vision or is his vision of the metaverse sheryl or no sheryl the right place to take this company? >> i would say it already has the fresh vision and that's the metaverse. i've never heard the word come out of sheryl sandberg's mouth t.o. see her leaving, like ed said, is not a surprise. i think this goes to show you how important facebook nails this metaverse the company is putting all of its chips in vr and ar and whether its legacy businesses survive. a tough moment in the market the stock is down because the market isn't interested in promises of long-term growth it wants results now

once sandberg who sat on the ads side of the company how small businesses could use facebook to reach consumers, the line she's given over and over again, saw where the company was going, all of a sudden, well, what am i doing here anymore it just underscores how important for facebook to nail the bet. >> to that point you are saying her significance was that she kept facebook from being an even more, how did you put it, off kilter company at times. who will play that role now? it's difficult to get this transition right >> that's exactly the right question going into the metaverse, creating it, creating another sort of social network with different kinds of bells and whistles or different interactive element to it but it will still have the same pitfalls it will still have the same issues and concerns.

without moderation, without real oversight, and they attempted it with facebook blue but they're taking money away from that sector of the business, human moderation, and putting it into the metaverse. and that's the goal. that's the aim, and they've been very clear about that. that is, i think, you are not replacing one problem with a different one. it's the same problem that will just carry over to the metaverse. that is exactly the right question the fact is i think sheryl did lose her power as the scandals mounted. that role was taken away mark essentially sort of took that up himself. i vn seen from his actions how that will translate into a safer space. >> parting word of advice for investors? >> i would say if you're interested in long-term growth

then facebook seems like a potentially good bet i would stay away. dealing with advertisers that can't get results or can't optimize because of apple's changes. breathing down its neck with no sign of letting up people like tiktok and snapchat is on the rise the stock is down. what is facebook doing struggling to win over teenage users. why is sheryl leaving now? it doesn't look like anything is going to get better anytime soon she probably said we haven't had a moment where we've been on the rise it doesn't look like things are going to improve and might as well just pull the rip cord now. that's what she did. >> the stock is up almost 6% today. getting more to what may or may

not be going on. >> ed lee and alex traders looking for the goldilocks of economic data not too strong, not too weak the numbers out tomorrow that could provide the just right scenario next. the future prices of gasoline, $4.20 a gallon a nationwide average soon enough if we stay up here at these levels oil also udeitp spe hope for more saudi outputs with operat, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping find new ways to unlock energy around the world.

>> welcome back. it's kind of like porridge traders want not too hot, not too cold bob pisani is at the new york stock exchange with whether we can hit that tomorrow. >> what does the stock market want right now it wants an easing of supply chain issues and it wants a soft landing and that's goldilocks

and the first is showing signs of improvement and the second is elusive. daimler truck were pushing past the global chip shortage and other companies like foxconn and global supply chain issues were improving and good news and gold locks is the soft landing that everybody wants and that's the problem. that's proving elusive the market is running headlong into a problem it wants economic data to be goldie locks and it's not working out that way, so if the data is too strong the fed will keep hiking and if the data is too weak there will be fears of recession. the recession yesterday was two points too hot and just two points and the market fell apart. the stocks dropped and bond yields shot up and traders are terrified of recession and they're terrified of a strong economy. it makes everybody crazy the main reason that high conviction is in very short supply right now so goldilocks is also expected from the friday ism service report and from the non-farm payrolls both of which are supposed to be

weaker than the prior month, but not too much weaker, you see that's goldilocks and if you're close to the goldilocks expectation it will reinforce the idea that the fed may indeed pause after hiking 50 basis points in june and july, if they were a lot hotter than that like the manufacturing it's likely we'll get the same action that we got from the ism manufacturing yesterday and you can see why everyone is sort of crazy here what is it that we want? we need that perfect goldie locks and it's hard to get that kind of outcome right now. >> certainly is. thank you very much. bob pisani cybersecurity stocks have taken a hit lately like okta down 52% over the past three months and one analyst sees consolidation ahead and what is to outperform over the next decade after this break. other companies pay for stores. which means you pay for stores. but this is our store. which means you get a single line unlimited plan... for as low as $25 a month.

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been having a rough year so far. crowdstrike, the relative outperformer down only 17% they and okta both report after the bell today okta is down 60% will earnings be enough to pair losses and turn the ship my next guest hopes so he's seeing opportunities in the space calling cybersecurity a non-discretionary budget item, he is director of cloud and software technology at truist. joel, welcome. here is my problem we all say this and on some level we know it's true. i think it's walmart's ceo who said a couple of years ago that cyber was a non-negotiable in terms of spending. however, the stocks keep underperforming. why? >> that's a great question, kelly, and that's because in this instance it's been a seller, sell anything market and that's really the opportunity here cybersecurity is recession resistant. it's the fastest growing, highest priority of software and me talking to any ceo and board of director, it's a topic at

every single one and they're frankly, suspending is increasing and it's a top priority, so i think that's the opportunity. i think these names will outperform here and as you mention, you'll see crowdstrike after the close and the fed is expecting 63% in this quarter, so that's going to be one that i think will outperform from these levels. >> you know, on a fundamental level, are the businesses doing well are they growing how are profit margins is there any reason fundamental fundamentally why the stocks are underperforming? >> there aren't any reasons as a lot of these names in tech and general and software, the names got over invested. people's expectation got ahead of themselves and that happened in the private markets and the public markets and now these stocks are very, very reasonable, and i think people that put money to work here, we're calling these decade stocks, right? these are multiple compounders from here. crowd flair, crowdstrike and

zscaler will grow north of 30% and deliver 30% margins, so you're not only getting growth, but profitability, as well you cite bravo's acquisition of salespoint which is at above multiple and ev to sales basis they have $2 trillion, and i want to make sure people heard what you said and there are four names here in particular that you think are the best positioned, crowd strike, palo alto, zscaler and crowd flair. >> based on estimates today. yes. >> and final comment, it would be a must buying opportunity or are there other buying opportunities? >> i think these are the four that you can own right here, right now and buy. obviously, i can't predict what will happen in the overall market i expect these companies to outperform, but if you buy them today you'll be very happy over the long term and as far as your

comment on private equity, there is $2 trillion in private equity money out there right now and we're seeing it put to work and we're seeing acquisitions in the space right now and mandy and salepoint and we expect more to come >> all right, joel thanks for joining us today. good to have you >> joel fishbine from truist and we'll be looking at new opportunities and it's time to buy boring and i'll join tyler matheson on "power lunch" which starts right now n . welcome to never boring "power lunch." welcome, everyone. i'm tyler matheson a warning from market stalwart microsoft, it is lowering its fourth quarter and profit sales forecast citing a currency drag. which companies could be next and what does that mean for the battered techtrade plus the fed vice chair says it is hard to make the case for a rate hike pause right now, but our market guest says inflation ha