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 has peaked

we'll ask her why she feels that way and how she's investing right now. there are some surprises in there and that plus gasoline futures hitting a record midday. we will discuss it later this hour >> kelly >> they just keep going up and up and up, and i'm talking about gasoline and oil and take a look at stocks that are taking all of that in stride hi, everybody. the dow up 216 points and the s&p up 50 to 51.52 and the nasdaq up 2.25% today and these are big reversal from the earlier losses, nvidia, etsy and match are some of the biggest movers midday and look at chewy up 23% after its unexpected quarterly profit last night. boeing is the best performing dow stock. it is up 6% today and that is helping lead the blue chips up b.a. nearly a 7% gainer now, ty. >> thank you very much, kell microsoft a market bellwether, as you certainly know, but it lowered its earnings and revenue guidance today

the company citing headwinds from the strongest u.s. dollar in two decades significant because it's not the only big tech company with currency exposure. microsoft shares lower today and off 20% this year. now that's slightly better than the nasdaq 100, we should point out. here to discuss the dollar drag on microsoft and other cnbc steve kovac, steve, exactly what did microsoft say and what's the -- >> what's happening over there >> there's a camera between cameras over there we'll solve that >> it was not me >> it was not you. >> what exactly, did they say and how materiel is this currency >> they're lowering guidance just slightly 54.74 billion and eps to $2.32 and we have internal numbers by the way, if you were paying

attention to the microsoft earnings back in april, this wouldn't be a huge surprise for amy hood already warned that hey, this is our guidance through the month of march and april. this is what we think is going to happen, but we don't know what's going to happen in may and sure enough, we've got this revised guidance >> and they are talking about which quarter? the one we are in right now. >> the current quarter this is their q4. >> and it will end on june 30th. >> yeah. >> and so what does -- is this an endemic issue with other tech companies or is it particular to microsoft and the nature of their global business? >> it's hitting a lot of companies in a lot of different ways so i look back at the other company, i follow closely apple and they had a similar warning with their cfo saying, look, we could have a 300-basis-point hit to revenue and earnings because of these foreign exchange headwinds and they're experiencing the same thing. obviously, they do a lot of business internationally and what's interesting to me about

microsoft is it's not about china shutdowns, it's not about ukraine and it's not about inflation and they're being very specific to the foreign exchange. >> we are in the 20-year high for the dollar earlier it's got to be encouraging to see the price action it was down 4% earlier and at least it tells other major companies who i'm sure we're going to hear this theme from, look, they've gotten out there and they put the word out there and investors are not penalizing them for it rid now. >> stephanie link, our friend tweeted, this is not the last one and it is also looking through ibm's earnings and their call and they seem pretty protected against this they have a lot of mechanics in place to protect them from these headwinds and it will be very different for each of these companies with exposure. >> we'll see analysts come out and say, here are the companies least exposed and here are the companies that might benefit from the strong dollar and that seems in place for now. >> absolutely. >> steve kovac, thank you very

much appreciate it. >> thank you. microsoft far from the only company that could face these currency headwinds as the dollar rises. let's take a look at other companies with potential exposure here's seema modi to take us through it seema? >> tyler, steve mentioned a couple of them microsoft joining a string of tech giants that have blamed the str stronger there are and they expect it to weaken by nearly three percentage points and meta has a three percentage points impact on second-quarter results. technology companies have expanded overseas and it gives them access to more customers and just to put this into perspective, on average, the s&p 500 tech sector makes up 56% of revenue outside the u.s., but even beyond tech, the number of companies mentioning the negative effect of the there are

has grown exponentially, netflix, procter & gamble, coke. one slice of the market that tends to be shielded from the stronger dollar, small caps which are outperforming large caps slightly this year and names with domestic exposure are performing vastly better than names with higher sales. take a look at that chart. chief investment officer at global wealth management, the dollar rally is short lived as they start to consider raising rates while the currency is trading at a 20-yearhigh, righ around there and it's worth noting it's down about a percent over the past four weeks kelly? >> seema, as we look across sort of the landscape, we are highlighting tech, highlighting microsoft and they're the first ones and that's not the industry that comes to mind i'm thinking drills and those would have big exposure here >> absolutely. industrials do have that exposure to international sales and technology don't want to

advertise the higher percentage of sales made outside the u.s. and names like microsoft, apple, google with over half of their sales in foreign sales and semiconductor stocks even higher than those three names on the flip side if you look at the s&p 500 sectors that are less vulnerable to the currency headwinds and you look at the s&p financial sector with 77% of the sales inside of the u.s. and another one which is quite obvious is the s&p real estate sector one of those more domestically prone sectors. >> great point great point. although there are other reasons why people may be wary of those stocks thank you very much. our seema modi >> microsoft is one of the names we may be watching if they're sounding the axe large should it change the way investors look at the next space. megan chu is head of trust does the stock price reaction tell us investors don't seem overly concerned about this,

should other companies look to get the bad news out about their dollar exposure? >> yeah. i think that this has the been somewhat expected. we knew the dollar would be up year over year it's also the speed with which the dollar appreciates or depreciates with the tailwind. you covered all of the important highlights very, very well in terms of the exposure to the tech sector, and i think it is very important to note that we did see the dollar peak in may and we've done a historic level in terms of adjustment to fed pricing, and i wouldn't expect the dollar strength to continue from here. i think it will be more about the fundamentals, cash balances and the balance sheet and the low level of leverage for the tech sector broadly, and capex intentions from small businesses which still remain healthy and are very important to the tech sector >> i see in my notes that among

the sectors that you like or at least looking at right now are u.s. small cap stocks. seema just mentioned them as more insulated than large cap, multinational companies against a dollar fluctuation is that one of the thesis that is behiebd your thoughts there >> yeah. so we are still neutral to u.s. small cap, but i think it's an area that investors have to watch and look for in terms of picking your spots because clearly, one way to play the slowing economy and the recessionary risks is to pile into defensive sectors and defensive asset classes and many of these are pretty bid up when you have asset classes like the small cap, we've already had a huge correction that goes back to the fourth quarter of last year and valuations are very attractive relative to their own history and relative to the u.s. one of the risks there is inflation where smaller companies were less able to pass

through those costs as well as supply chains. we do believe that inflationary pressures have peaked and they're going to come down fairly rapidly over the next few months. >> well, that's nice news. >> they're also showing signs of peak. >> inflation has peaked in your view and i see that you're not terribly worried about a resessions in the near-term. you do say, however, that you're cautious on the consumer why? >> yeah, well, one of the reasons why we think inflation is coming down is because we expect that consumer demand will slow so if you're going to expect inflation to come down i think we'll see some weakness from the consumer so we're more cautious there we've already seen e-personal savings rate drop below the 20-year average. cash balances more broadly for consumers are still elevated, but if you look at lower income tiers, they're below pre-pandemic levels. we're focused on the pulse of the consumer we still expect luxury to continue to do well. we expect discount dollar store

type of retail to continue to do well as supply chain pressures improve. off-price retail is interesting with a lot of these companies adjusting to consumer pref rnses shifting and being left with excess inventory and the spectrum when it comes to consumer spending, we are a little bit more cautious on it >> final comment on energy, megan, that is the sector you still like >> we do it's clearly had quite a run and valuations have adjusted from being still attractive to very attractive and we've had a thesis there it is still long term where we see the oil market still incredibly tight we have china re-opening and we think that that will continue and we think there's upward pressure there energy companies are still managing their balance sheets and capital discipline quite well, so when it comes to energy and materials that is a sector

that we still have in overweight >> megan shue, thanks for your time we appreciate it >> coming up, sheryl sandberg helped grow meta's business growing revenue from 153 million to $118 billion. that's a big gain. now she's leaving. what's next for meat and the stock? it's down 40% this year. plus opec raises output faster than expected and what this means for energy investors and does it substantially change the outlook for supply and demand? the answer when "power lunch" returns after this quick break

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shares of meta are up about 3% following sheryl sandberg's decision to step down as the company's number two she oversaw much of facebook's growth its employee base went from 450 to more than 77,000 employees. today, annual revenue now near 118 billion. monthly active users close to 3 billion and meta's market cap is nearly half a trillion dollars though not as big as it used to be her time at meta was not without controversy. her company is facing privacy issue and the spread of hate speech, misinformation and investigations by government agencies here and around the

world. let's bring in casey newton with editors on platformer and ina freeh. ina, let me begin with you did sheryl sandberg leave the company just at its top or after it's peaked a little bit what do you think of her timing here >> well, i think certainly she wanted to leave at a time when it didn't feel like she was leaving for this reason or that. so i think facebook certainly has had its share of scandals over the last month, year, et cetera, and she picked a time probably where she felt it wouldn't be tied to a specific thing. whether facebook is at its top or bottom depends on whether you believe in the metaverse, i guess. >> do you think she did? >> you know, i don't think her leaving was really relating to that, necessarily or not i think, you know, it certainly remains to be seen i'm not sure how big a believer she is or isn't, but certainly

she's been able to build facebook's business against every other type of product. so i have no doubt if she wanted to stay she could have built a business against what facebook wanted to build in the metaverse. >> so casey, why did she leave now, or broadly, number one, and number two, in some of the reading that i've done it appears that her role at facebook had been shrinking. why? >> that's right. if you look at what was part of her purview is she was chief operating officer and it used to include all policy communications and a bunch of business functions and starting at around 2018, she started to give some of those things up i think some of those came willingly and some of them were strong suggestions from her boss, mark zuckerberg, and by the end, she was only focused on promoting businesses which is a pretty good line of work for someone whose title is coo

so i think she's been looking to leave for a long time and she decided this is as good a time as any >> i don't know exactly, casey, to put this, but is facebook a riskier company without sheryl sandberg >> you know, it's hard for me to argue that it is, if only because i do believe her influence has been shrinking for some time now. she has not been particularly interested in this pivot to the metaverse. she hasn't ever had much to say about the company's hardware initiatives. so if you look at where facebook wants to be in five years, sheryl sandberg hasn't had much to say about it so for that reason, i think there are a lot of risks associated with being a meta investor right now, but whether sheryl is there or not i don't think is one of them ina, how do you react to what casey just said and contextually to what he just said and is meta ariskier place now that it is

more -- even more completely the purview of the founder and larger shareholder, mark zuckerberg >> i tend to gray with casey i don't think that it's specifically riskier because sheryl's not there, if we were having a lot of years if we were having this conversation, five, ten years ago the answer would have definitely been yes sheryl was like the adult in the room and she'd built the discipline and business in the meta what she added in the moment will exist and will continue and the risks are much more along the lines of antitrust regulation and privacy regulation those are the things in the metaverse. i don't think it's the same as she would have been her departing five or ten years ago would have meant in terms of the specific risk from her leaving >> casey, any fault on the stock today popping 6% >> you know, that one is hard to

tell that stock had started to look cheap, this is still up pretty incredible advertising business and i wouldn't be surprised if investors were coming around on the idea that there was still a lot of money to be made in that kind of forward business. >> and same question to you, ina. is this a moment where for whatever reason liquidity, you name it, the stock is experiencing a little bit of a bounce or what do you think is kind of the underlying trend here that investors need to stay focused on >> well, i think it's still the case that facebook and google largely divide the online advertising market with everyone else fighting for the scraps and so facebook is still a tremendous business. it faces the same risks with or without sheryl and there are near-term macro headwinds and there are a long term bend on the metaverse, but when it comes to making a ton of money off of a very healthy ad business which sheryl deserves credit for

building, i think there's no question that facebook's core business continues to be very strong, even despite some of the changes apple and others have made that have made life more tricky. >> let me get quick answers from both of you what does your gut instinct tell you her next move would be >> she can come here and be a cnbc contributor that's the invitation i'm putting out here she could be president of harvard. she can run for office, she can go into philanthropy or go back and run a company. what do you think she will do? >> in terms of her it will likely be more in the political sphere if she wanted to go run a company and be ceo, she's had many, many opportunities over the years to do that i think she has a very strong political voice and i would expect to see her use it in some fashion. >> interesting >> casy? >> i'm betting more on philanthropy her foundation put up job postings which means she'll be

paying more attention to that and she wanted to work on women's issues and she'll have a lot to work on there so that's where i'm looking for her to go back in the first six years. fascinating personality. casey newton, ina fried, thank you. coming up, credit cards. new datashowing a spike in the amount to buy new and used vehicles we'll have those details and the implications next. plus back to bentonville walmart having their first shareholder event there in three years. how has the company done with amazon and what are the plans for the years ahead? "power lunch" will be right back your back with thousands of rollbacks so you get everything you need to keep your summer rollin'. because when you save money, you can live better. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies

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you still get nightmares? all the time. what matters... is what we do now. anyone who has tried to buy a car recently knows that prices are astronomical, if you can even find a car to buy those prices are leading to a huge jump to the amount of money people are borrowing to pay for them phil lebeau has the numbers for us phil >> there was a day not too long ago when someone said i will buy a car for $40,000. they would say that's a lot of money. not anymore. >> experian crunches all of the

auto loan data for both new and used vehicles. in the first quarter the amount borrowed for a new vehicle just under $4,000 this is what people buy when they're at the dealership $648, not quite an all-time high and up $78 compared to a year ago. obviously, the extremely low invents or and go to a deal areship and try to find a new vehicle that's just sitting there. hard to do these days and that's one reason why you are seeing higher prices. the automaker doesn't have to have big insensitives and you aren't going to get a good deal in terms of an insensitive the average amount borrowed an increase of $5600 year over year and the average payment for a used vehicle is now over $500 a month, up almost $90 year over

year the last three years have been great for the auto dealership stocks take a look at whether it's autonation, group one, lithium, sonic. all of them have had really nice moves in the last couple of years in part because they're much more profitable than they were say five or six years ago and for the average mom and pop dealership, they had record profits last year and they may have record profits this year and bottom line, it's not changing any time soon >> we highlighted the increase in defaults and subprime borrowers and is there a concern about a ripple effect? >> they're still within the historic averages and historic norms. in other words, it'snot a huge spike like what we saw in 2008 and 2009 that's when you saw a number of people who got way overextended and probably shouldn't have bought the vehicles they were buying yes, there has been an increase and it's not to the point where people are saying cut it off here because these people are getting way too overextended. >> will we see people who are

under water on their loans either used car buyers or new car buyers >> i'll bet youwe will, and yo know why the average -- i shouldn't say average, the average is just under six years for a loan, but the percentage of loans that are now greater than six years, tyler, more than a third of that more than a third of the people out there borrowing to buy a new car are taking out six and a half, seven year, sometimes eight-year loans >> wow i didn't know they had those phil lebeau, thank you let's get to frank holland for a cnbc news update. san francisco bay area residents got woken up by a jolt this morning, a small, relatively small earthquake struck in san francisco shortly before 4:00 a.m. local time and felt to sacramento two manhole explosions in downtown boston. one woman suffered burns and

injuries and two buildings were evacuated due to carbon monoxide concerns and the cause of that remains under investigation. tip-off for game one of the nba finals is tonight and if you're watching the telecast, you may notice the absence of very familiar voices and commentator jeff van gundy he missed sunday's eastern conference finals telecast due to covid and espn adrian insider ad adrian wojinowsky. >> who does that leave mike jackson of the three? >> mark jackson. >> i think it is mark jones who stepped in the other night for mike green cho is the signature voice of the nba that's interesting frank, you kelly and i will raise our hands. >> i'm free. i'll be watching so if they want to fly me out to the bay really quick i'll be ready. >> it should be an interesting

series. >> i'm looking forward to it >> more "power lunch" ahead, we'll speak to an analyst who says buy telecom and buy boring. our three-stock lunch will dig into three maims and i'll offer a smoother ride in volatile markets and the hair we'll be right back. (vo) iphone 13 on us. on any unlimited plan. for every customer. with plans starting at just $35. all on the network more people rely on. at cdw, we get it's hard to keep employees productive when their work and home lives are busier than ever. well that's why we gave cyborg assistants to everyone in the company. they handle the "home" parts, so we can keep working. mmmm, delicious. shhhh, shhhh. you know at cdw, we can design a productivity solution with lenovo devices that offer fast, reliable connectivity to help your people manage their workloads, with or without cyborgs. perfect, 'cause this guy needs a little work.

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welcome back, everybody. 90 minutes left in the trading day where we've seen losses turn into gains as we move throughout the day and let's get you caught up on stocks, bonds and especially commodities where we're seeing consistent pressure in oil and gas let's begin with the dow up 289 points right now after a couple hundred point drop earlier on nasdaq leading the way up 2.5% microsoft which warned a hit from the stronger dollar today bouncing back from its sell-off on that news it's positive by a third of 1% also seeing some big gains in cyber, pure storage, mongodb and crowdstrike and okta are all up 8% to 10%. it is an up day for cathie wood

and her ark innovation is back up to $46 a share. tesla, roku, block all seem 5 to 7% gains today and other thin tech games and the likes of affirm and coinbase coming up to 8.5% >> rick santelli joins us with that rick, tomorrow the big jobs report >> yes the big jobs report and we should all keep our fingers crossed that today's adp report does not correlate or rhyme with tomorrow because it was a weak report we had horrible productivity we had a jump at unit labor cost and the only thing that was good today was initial jobless payment delivering claims and it is all about jobs, jobs, jobs, especially if you're monitoring the consumer look at two-year note yields unchanged on the day and the week, we've had a low to height yield of 252 to 267 as we trade

to 264 tuesday, wednesday, thursday thus par and also trading very close to unchanged when you look to overseas, you really understand why the dollar's had a problem boy, you look at these yields in the boom market e eurozone, they are skyrocketing. >> these are going back to 2014, because over 120, they're now at eight-year high yields and if you were to look at their two year known as the shots and it closed at 63 basis points and that is an 11-ier high back to the foreign exchange market and we can talk about how hard dollars are giving up major gains and hoanies are still stuck in the pre-made peak, trying to explain away the issues with their earnings and multinationals, but boy, oh, boy, they've ramped up pressure many central banks like the ecb. this is the 20-year chart, because not more than a month

ago, we're at 20-year lows against the greenback. boy, how things have changed and we're hovering near a five-week high on the euro versus the dollar and if you look to other areas like china we've seen the dollar give up hard-fought gains there as well and we all know tomorrow's important, but boy, especially after today's adp, everybody better tune in tomorrow to watch the game and the big report. kelly, back to you >> i won't steal the show by asking for your guess, risk. that's my favorite part of the morning. >> let's turn to oil and commodities. oil closing for the day, higher this afternoon after dropping in the morning making it more noticeable and this is $117 a barrel and it is not tamping down oil prices and they're adding 650 barrels per day and that was less than expected and a little relief for gasoline futures hitting a record high

themselves today and they are called the rbob and it's up 90% and basically doubled today. that was the high watermark earlier and you have to wonder if pump prices are going ahead nationwide >> hour next guest says getting prices under control and they're likely to go higher and joining us is stacy morris at the tough, and i hope i said that correctly, stacy how likely are the pump prices likely to go >> it is hard to say how much higher they are likely to go, but the bias is to the upside, unfortunately. we are now getting into driving season oil prices are moving higher and you mentioned the opec plus agreement and it sounds good on paper and it isn't going to result in much more volume coming into the market so i think prices are going to stay high and inventories in the u.s. will stay very tight. >> we're seeing so much tightness and people are worried about shortages. you probably saw the comments

from fati this week and told s spiegel that we're not just facing a crisis and an electricity crisis and none of this is very reassuring. >> yes unfortunately, there are widespread problems across the board. u.s. natural gas prices have been at multi-year highs and they're very strong counter seasonally and there's a lot of pressure in the u.s. and a lot more pressure abroad and unfortunately, there was a situation that there was no easy fix to tonight >> who has the spare capacity, stacy and what are they likely to do with it? >> sure. he sits with saudi arabia and the united arab emirates and combined, they probably have 3 million barrels per day in spare capacity and that is roughly 3% of the global supply and they've been reluctant to bring that spare capacity back online

so while that's there they are trying to avoid tracking it as much as they can to just keep that as an option in case things continue to get even tighter >> and in case things get even tighter, what does that mean does that mean that demand continues to go up or that russian supply is effectively cut out of global markets or the european market. let's hasten to ad and it is not cut out around the world by any sense. >> right to some extent and they're moving to europe today may be re-routed to china or india and other parts of asia and there's fun flexibility there, but there's a lot of crosscurrents today and so russia's supply is one of those and how does that get re-routed over time. on the demand side, what does it mean for china to lift some of their covid restrictions do we see demand start to come

back meaningfully there and then driving season here in the u.s so barring a global recession, demand trends should change to be pretty positive and so there's just not a lot of cushion in today's market and if we see an unexpected interruption, think of something like a hurricane in the gulf coast that coknocks out energy production >> isthe only thing that can bring gas prices down effectively, a recession >> it's probably not the only thing effectively, but i don't think there's any quick fixes. the administration has looked at different options. restrictions around exports. there's been talk of trying to return idols' climbing capacity. maybe eliminatingsome of the requirements this simmer, that could help, about it is not are

not low hanging fruit. some of these are not going to be quick fixes unless we see oil prices have come down, i think gasoline prices will say high >> stacy morris, appreciate it. >> thank you >> before we head to break, check out gamestop, the meme stock reporting a $158 million and the decline in hardware sales. up, in, we'll speak to one wall street analyst who says investors should not focus on high risk and growth and stop overlooking safety trades keli telecon. "power lunch" will be right back hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick

the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.

welcome back to "power lunch," with the growth trade down and out our next guest says investors should buy out boring stocks to ride out the volatility, and he's looking where else the telecom. let's bring in the telecom analyst. david, good to have you here your space has been far from boring the changes at at&t and others and questions about who is raising price and what that's going to mean and t-mobile is

competing with comcast any maybe it's me that finds this fascinating, but what do you think are the best bets for investors right now? >> thanks, kelly thanks for having me. >> look, we agree. both has had this moment and we saw the reversal with the high-growth trade and people have soured on the faith and the future of a lot of the tech companies in particular and so what we've been watching happen is investors have been shifting to value and income as the focus and there are a couple of reasons to do this so they've been under favor and there's a lot of value there relative to history and number three, in a lot of cases there's a lot of recession resistance in these businesses telecom is a subscription-based business and you start the month at a hundred and in tech it's a lot tougher and you have to sell your way into the future when recession lites it could be a problem for them we do like at&t, and t-mobile and it's two big stories and it can happen to withstand recession. >> why doesn't verizon become

sort of the third, and oligopoly-top pick, but why not verizon? >> verizon is absolutely in that mix. these two stories are interesting because there are a lot of change agents at&t is the tenth highest yielding stock of the s&p 500 and even though they cut their dividend related to the warner brothers discovery spin-off and it's trading at eight times p-e multiple which is very near the all-time low and trades at six times cash flow multiple which is almost half of where verizon trades and there's been a lot of negativity around at&t and the changes and the strategy and they've sichl lmplified the bus and of those 90, at&t is 89th in terms of ownership. >> wow >> so we see at&t outperform about 33% year to date relative, but that's all been on the heels, we think, of retail

money, so hedge funds who are forward thinking and we think the money will come in as we get more familiar with the new at&t. >> so you basically like the three major carriers and you say the towers are holding up reasonably well and they're only 10% off the eci. you're not recommending all of the yield plays and 8.4% yield you're saying this stock is a sell because its business is an unrelenting decline. >> look. the management team at lumen has done a lot and they've invested in people, new services and increasing the footprint, but the industry in which lumen operates which is primarily the business enterprise services sector is in a 2% of secular decline. century link -- it used to be called century link and not lumen is the second largest player and they've been largely a share given in the marketplace. so you have the number three yielding stock in the s&p 500 and that's why a lot of people are attracted to it, but they'll

sell a lot of their businesses in the second half of this year. they'll try to pay down some debt, but next year they'll spend 100% of all of the cash that they make on investments and dividends and that doesn't leave a lot for debt and if you take a look at how the debt has been trading, the yields have been doubled year to date. so they've got a lot of issues that they need to address and the thing that would solve all of the problems would be cutting the dividend and that's what we're concerned about. >> david barden, far from boring and far from good news for our cell phone bills, by the way thanks for joining us. >> thank you very much appreciate it. >> after the break, jamie dimon says the market and the economy could be heading for a hurricane. yeah so we have three names that can provide smooth sailing even in a perfect storm. that's next on today's three-stock lunch.

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we've got them stacked up. welcome back time now for three-stock lunch cnbc pro highlighting stocks that offer a smooth ride and cash payout in this turbulent market, meaning low volatility, strong dividend yield. so far we've got kenda morgan, m

& t bank here to trade them is stoeve grasso when i say kinder morgan, you say? >> i'm going to say sell on that one. i understand why it would be a steady eddie consistent learner. but the performance year to date is up 25%. the xle is up 60%. so if you're going to take that single stock risk, why is the question for me. if you look at the longer term, tyler, it's an infrastructure play it's pipelines it's not where the puck is going with the politics of of this country. it's a sell for me >> somehow i'm not surprised what about m & t bank, steve what would you do from there >> kelly, if you're looking at

financials, financials had their run when we were looking at higher rates if you look at that stock chart, kelly, it looks like an ekg to me that's volatile as well. why wouldn't i be in financials now? they already have the tailwind of higher rates. higher rates are okay if we have higher growth. what is jamie dimon talking about? i heard the intro. he's talking about a recession i'm thinking about a recession if the fed does its job, there's going to be a recession. if they fail, there won't be they're hoping there will be a recession. that's my base case. you don't want to buy a financial when you're looking at a recession, lower business activity. >> very interesting argument there, steve let's move on finally to one that might do better theoretically if the -- even if y slowing and that's bristol-myers squibb. >> yeah, for that one this is a buy forme. and if you look at the stock,

it's very close on technicals to me being a little more aggressive on a buy. it's outperformed its peers. it's up basically 18%. if you look at pfizer, which monopolized all the headlines during the vaccine craze, that one is down 12%. if you look at j&j, i think that's right around flat for the year and if you look at merck, that's up 16% so it's more equivalent to a merck. having said that, they derive their revenue sources are from cancer drugs it's not from the vaccine craze that has dominated the headlines for this one so people are going to be -- investors are going to be rotating out of certain sectors and rotating into others i think pharma and biotech have been ignored if you look at the biotech industry, they have been decimated. i think pharma is an extension of that. i think new money will come into play here. i think bristol-myers around$7

is actually a great buy. >> steve grasso, thank you as always fascinating stuff. for more, visit cnbc.com/pro and dr. caforio will join us tomorrow at 2:00 p.m. eastern to discuss his company's pipeline, advancements in cancer treatments and more. don't miss that. the ceo of bristol-myers squibb. >> good thing steve thought it was a buy. >> yeah. ahead on "power lunch," walmart holding a major investor meeting, shareholder meeting it's investing big in its digital platform and delivery to put a dent in azamon prime will inflation spoil the fight find out next. ♪ ♪

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world's most sophisticated supply chains. so if economic growth slows from here, will walmart be a beneficiary? walmart's costs for fuel, for freight, for wages, that's all pressuring profitability, which was detailed in that recent earnings report and triggered a broader sell-off walmart shares are still off 15%. now, its comparable sales do continue to grow as shoppers return to stores while digital growth slows, up 1% year over year over the last two quarters. walmart's online membership program launched in september of 2020 but has been light on the details since. they estimate that walmart plus has about 11 million members, possibly plateauing or falling slightly in recent quarters. the group estimates that amazon prime has 172 million u.s. subscribers. while walmart was widely viewed as a pandemic winner, shares are up 23% since last meeting with shareholders here for this big

week compared to the broader s&p 500 which is up 48% in that same period of time. >> when are we going to hear from the ceo, court? >> so that's going to be tomorrow tomorrow is the big arena event where they gather the associates from around the world, celebrate the accomplishments and then we have a chance to talk to the ceo at the very end of the week's events. >> all right exactly. the tail end courtney, thank you very much. >> thanks for watching "power lunch. >> "closing bell" starts right now. >> see you tomorrow. another volatile trading session here on wall street with the major averages staging a pretty big intraday comeback the most important hour of trading starts now welcome, etch, to "closing bell." take a look at where we stand in the market trying for our first day of gains in the last three, and now almost flat on the s&p 500 for the week with the s&p 500 up 1 spoken 25% the nasdaq zooming 2%. consumer discretionary is the best performing se