followed by auto zone, chipotle, among others >> those are potential next targets. thank you very much. before with go, we did ask the twitter world who won the inflation debate the head 7 is% of 23%. it's my twitter. got a lot of homers. we got to get the tom crowd out there. we'll dive more into inflation especially into gas prices on power lunch which starts right now. congratulations on that smashing victory welcome to "power lunch. here is what we got this afternoon fp labor market continues to sizzle. good news on the jobs front. sometimes not such good news for investors. should you stay defensive? our market guest says yes you should

kelly. thank you. hi, everybody. the major averages are down for a third time in four days. they are lower for the week. last week was the first time in nine that the dow was positive now we're back in the red as the dow is down 315 points the s&p is down 6 6. that's 1.6% drop the nasdaq is down 2.5%. we do have yields moving higher. the ten year moving back towards the 10% level with just hair under 296 now. it's been creeping higher over the past week. tech shares are retreating again. apple down 4%. also having a cautious resurge

the big question remains, are we seeing macro trend, rates or simply a change from strong pandemic buying of electronics into something different post-pandemic. >> we'll pick up the very thought with our next guest who is avoiding technology shares as the sector under goes the valuation reset. the sector's forward p/e late last year was more than 28 now it is a quarter lower at 21. he is sticking to defensive names in areas like telecomm and dividend payers in staples, phar marx, yutilities. welcome. good to see you. >> thank you >> physical therapy question the issue we have right now is that's probably one of the more

difficult questions to answer as all your guests have been saying the outlook is really cloudy going forward. our base case is for a rocky landing, which i define as maybe inflation getting down to 3 to 4% range probably the economy, we just cut our economic growth this year for 1.5 and to 2.5. kind of difficult economic backdrop you add that all up, i think you want to stay pretty defensive here you have got probably double counting of earnings from the covid lockdown still coming off on the tech side i think they are facing probably a couple weak quarters on

earnings against a backdrop of rising discount rates and valuations and still probably too high multiples every one want to get back in there. i get it these are great companies for the long haul but the near term doesn't look good. >> you say people want to get back in there, at what point on the s&p, do you think most of the recessionary fear or the pricing reset fear will have been washed out or played out. >> the way we get there, i think one of the frame works that we think is very different than what people have experienced and so they are not thinking about it this way but even if you get an economic recession or rocky landing like we're calling for, you might get not much worse than in earnings slowdown where as normally, people talk about

economic slow downs and earnings recessions that's because companies stocks work off of nominal sales and nominal earnings with inflation still pretty high, nominal sales even in a rocky landing could stay reasonably mid to high single digits the market is getting close to a bottom our idea is maybe 2.20 on earnings this year probably a 17 multiple we think that's kind of fair value in the near term on the s&p. if you look at cyclical names,

those are closest to discounting the scenario the problem is the growth names is they haven't fully discounted the erpings and they still got pressure on the interest rates scenario it's tougher to call where they bottom >> cyclicals, you look at, i guess you call it industrial, united rentals would be in that category you like verizon, good dividend payer. talk us through your picks >> first on the boring side, sometimes losing less money is good enough or making 5% on dividend might be a really attractive return. we like boring here. they are putting through a price

increase right now we think that company, 5% dividend yield is pretty good. 3.3% yields, it's still got a good story what keeps getting in my head is i have oil at 120 probably for the next year or so. op that level, exxon will be off an extra 15 billion in cash flow that it's not going to know what to do with they're going to buy back stock. stock buy backs will help that stock. i think that's the next leg up i expect exxon to break the new long term hike it still hasn't done that.

good midwest, east bank that's got pretty healthy those stocks are down. you leg into here and wait for better bottom but we're getting close. >> steve, it's been a while. good to see you, sir >> thank you, tyler. >> we appreciate it. now to a big deal in the bio pharma world you can see turning points shares more than doubling today. bristol slightly lower but up more than 20% so far this year pretty great performance compared with 14% for the s&p 500. joining us is the ceo of bristol

myers. welcome to you both. meg, kicks things off. >> kelly, thank so much. really kicking off our cancer research coverage for us on this friday >> we see tremendous potential in value it's being developed for the treatment of patients with a form of lung cancer which is an area we know well. we're looking forward to launch as early as next year. you know when we look at the data, it has the potential to be a best in class agent.

very aligned with our strategy and strengthens our prospects for growth >> what else can we expect from bristol in terms of updates? >> great progress with our oncology pipeline. we'ring data in an early stage of lung cancer that's an opportunity to really change the way early stage lung cancer is treated. very exciting data we're presenting data.

that's really important because it can make cellular therapy better for patients. then later this month at a conference, we're also presenting really exciting data on our program when you put it all together with the acquisition of turning point and reperfecting it, we're making great progress to strengthen and diversify our leadership >> i want to ask about the cell therapy landscape where you're taking a patient's cells out of their body and beefing them up to better fight cancer and giving them back these have been amazing in cancer treatment and cancer time types. we understand there's been some manufacturing hiccups across the

space where supply can't keep up with demand here what is bristol seeing along ta front and do you see this gettingget ing alleviated any time soon we're rapidly becoming the leader in this space we received approval earlier this year for two cell therapy treatments there's tremendous value in this there's a lot of demand, physicians that are eager to prescribe cell therapy treatments and we're working very diligently to increase our capacity we do expect to see significantly increased capacity in the second half of the year what's really important is that we are just at the giping of seeing the potential of a new modality like cellular therapy looking forward into our pipeline, we see an opportunity

to continue to transform the way cell therapies are administered. for example, earlier this week, we announced an agreement with a company called emantics where we'll be working together to in the future develop what's called off the shell cell therapy it's just the beginning and i'm really excited that the potential to transform the treatment of cancer is extraordinary there. >> it's kelly here in studio we heard from a lot of major ceos over the past cup of weeks with some pretty concerned words about the economy and where we're going. you seem to have a lot of promising things going on. your stock price is up 20% year to date. can you categorize what you think is happening with the u.s. economy and if you have any major concerns about it or any sign that you might be slowing h hiring, starting layoff, that kind of thing? >> for us it's really important

year we already received two approvals. for us it's all about growth we are looking at inflation. it does not have major impact on our company. we must have an incredible pipeline we more than doubled the size of the pipeline at bms. we have exciting science we're attracting great scientists for me, it's all about really growth and positioning the company for the future

sgr you spoke about growth you did a big deal today are you going to buy more. with have -- we understand the value. in this case, lung cancer. we're always looking for the right opportunity and business development going forward. we have tremendous financial flexibility and great scientific debt in multiple areas >> thapnks so much for being wih us we appreciate it

>> thank you a great line up of guests. you can see gilead ceo they'll all be with us on monday >> fantastic thank you very much. coming up, retail gas prices jumping overnight. another record gas futures hit levels never seen before. we will ask a former industry insider if there's any relief in sight. stocks that are leading the bear market bounce, but are still deeply over sold things like t. re owprice, bath and body works and best buy. we'll trade them when power lunch continues. right now, we're all feelin' a little strapped. but weekends are still all about grilling. and walmart always keeps prices low on our fresh ingredients. so you can save money and live better. ♪ you're a one-man stitchwork master. but your staffing plan needs to go up a size.

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we will see national average prices some time between july and august of 5.50 on retail gasoline nation wide and $6 in diesel i think the point i'd like to make today is jamie dimon was correct. there is a hurricane coming. the eye of that hurricane is energy there's really very little we can do about it now except washington is trying to look like they are concerned in doing something but the dye is cast. we're using about 18 million barrels to 19 million barrels a day which is slightly down

there is some rationing going on in the gasoline market not significant rationing but over time as people change their habits, there will be. the other point i would make is it take a while for the real effect of energy prices to get passed down the chain. i think inflation will not get better it's going to get worse. we will have a recession i mean you can't take $730 billion out of the economy for en energy. >> joe, let me just interrupt just a second, if i might.

you say there's going to be 730 billion coming out of the '23, you're talking about the excess money or the increment of money that will be spent there year on energy by american consumers, correct? >> yes incrementally 730 billion. that's oil that's all the components made from petroleum like pharmaceuticals, plastics. >> to that point you couldn't be more correct i think it takes a long time for the effect of rising oil ato mov through. it touches so many parts of the economy. let's say we buy your thesis here you run a large chain of convenience stores and i assume some of them are associated with

gas stations what are you doing to prepare for the scenario that you see? are you not hiring anymore are you laying people off? what are you doing >> our business has never been better the consumer continue dos drive which is one of the factors behind this. we are hedging and we are trying to create long term contracts that will give us supply increasing our supply points you passing along higher prices? >> somewhat. we fry thoeld our prices as best we can but the consumer really does understand and is accepting

slightly higher prices without a drop off in demand >> thank you for your insight. the jobs juxtaposition coming in stronger with many companies hiring but tech sure isn't. we will discuss. plus poking the bear we'll take a look at the stock leading the bear market that may have more room to run. we'll be right back.

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time now for our etf tracker. we look at bio tech trackers why? because we can as group, bio tech is the worst performing group so far in 2022. a couple of potential catalysts are here increase in mna activity as we just discussed with the bristol myers ceo.

there you see it the ark genomic revolution etf down 4%, as you see it there when you look at the year to date number, all of these funds losing about a quarter of their value or more. there the eye shares down 23%. 47% and spider s&p down 36%. this data comes from our partners >> here is your news update at this hour. queen elizabeth will continue to miss jubilee related events tomorrow buckingham palace says she went attend sad's derby horse race.

donzs o injured after a train derailed it happened near a popular hiking destination local report said that three of the carriages over turned and many student wrs on board the train. singer/actress jennifer lopez will receive the generation award they honor recognizes her many contributions to film and tv throughout her career. she got her first leading role in the 1997 film selena. among previous recipient, tom cruise and jamie foxx. back to you. thank you very much. ahead, volatility insurance. check out shares of cigna.

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welcome back 90 minutes left in the trading day and week let's start with bob as it looks like stocks are about to book another down week, bob >> yeah, down about 1% well off of the lows of a couple of weeks ago. i think the important thing is other than the inflation news and the jobs report is continue concerns out there about growth worries. micron was the worse performer early on there's issues out there for them tesla had elon musk with a really bad feeling, idea the downgrade weighing on things and apple. morgan stanley noting about a slow down in the app store growth dirg may. some growth concerns also we saw some weakness in the airlines today even though the numbers were excellent american airlines had great comments notifying revenues will be higher. they are raising prices to deal with higher jet fuel cost.

forget about lower airline prices soon. that's not going to happen there's been weaker throughout most of the day along with most of the travel stocks out there as well. in terms of energy stocks, they are still holding up well. exxon, conoco phillips all along the leader board oil has. holding up well. where are we right now as kelly noted, it's down about 1% for the week but we're about 6% off of the rekrepts low that we hit that was may 20th the big issue guys going forward is going to be any news on inflation will get cpi fairly soon we want the see some moderation from that 8% numbers that we have been seeing there those will be the numbers. back the you >> absolutely. thank you very much. we have rates on the rise once again but what are the traders think about it let's go to rick out in chicago.

rick >> they think it was a pretty decent jobs report and rates were on the rise here and abroad look at interim. it sits at 2.66% it's up 3 on the day up 18 basis points on the week through one week chart, it's up 22 bay ses points on the week. if you think that's aggressive, two year notes closed up 31 basis points as did ten-year notes. boons closed up 31 base point ons the week those are huge, huge moves remember, ecb next week. if we look at what's going on with the dollar index, here is a chart going back six weeks we're near six week lows but we're up half a cent on the week here is the fly in the ointment p we come off of 20 year highs to be roughly at 5 to 6 week lows at a time where multinationals are still feeling if echblgts of -- effects of th

mid-may spike. kelly, back to you let's turn to oil which has been the head liner. closing around $119 a barrel up almost 2% to date 3% for the weekend pm marks balancing the additional opec supply the additional supply that opec plus is promising to deliver against additional demand from china as the country reemerges from covid lockdowns that has crude prices higher a moment ago. gasoline prices higher as well if you're looking to play defense in this market, you may want to lack to some of the insurance giants like shares of cigna that are up 12%. the company hosting the investor day today. >> david is fairly bullish on the market this morning they raised the

guidance in terms of the growth of the services sector which is where they made some acquisitions like md live. it's going to grow faster than they thought earlier this year as far as the prospect of a recession, we heard jamie dimon say brace for some kind of hurricane and elon musk saying he doesn't feel good about the second half of the year. >> i think that provide a bit of flexibility where employers may slow down the rate of hiring maybe stop the rate of hiring. there's still a aggressive growth to drive employment levels the services that we bring forward are even more in demand.

keeping them engaged and productive becomes more valuable >> services are very important employers are trying thoelds on the workers who may want to be part of the great resignations we'll start seeing some bio similars there that will bring down cost a bit. it could be the expected over turning of roe v wade by the supreme court. we saw that leaked draft come out. a will the of employers have been scrambling the figure out what they will do. i asked if he thinks a decision like that would be disruptive? >> i don't know what the final conclusion will be change is disruptive on this topic, it has the potential for being significantly disruptive

all health care is local and deeply personal. our philosophy is to be able to enable that and we work with employers one at a time. >> kelly and tyler, some of the benefits managers i've talked to say this really is one employer at a time. ef employer's grappling with this and they are all going to have slightly different ways they are going to deal with it back over the you. >> thank you very much after the break, on the road to ruin. elon musk says he had haz a bad feeling about the economy. he plans to freeze hiring, cut 10% of its workers, the stock. tesla sinking on the news. what is that 9% today. all right. he right to worry we'll discuss that, next

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country. that follows grim economic comments from jpmorgan ceo jamie dimon and tesla ceo, elon musk musk saying he has a super bad feeling about the economy. are they right mayor, welcome good to have you back with us. what are you seeing and hearing as you go around the country apart from anxiety about inflation with respect to the economy? >> you know, what i am hearing is there is anxiety about people's ability not withstanding a strong job market people's ability to make ends meet, to pay their bills, rising housing costs, to afford food, rising food costs. not withstanding some inflation in earnings and wages. it's still not enough to make i for the many, many years that we

have stagnant wages while we had modest inflation let's be clear, 390,000 jobs this is a strong labor market. this strong labor market in this post-covid recovery has been consistent and it's been strong and stronger than the last recovery after the great recession by 2008 to 2010. >> i guess the good news is the lea labor plmarket is strong they have not been rising enough to keep up with the rate of inflation and it's on food it is on fuel. it is on consumer goods and so if you're living paycheck to paycheck, more of your paycheck is going to wa we would describe as essentials. >> it's still tough but it's important to recognize that there's some global factors driving some of this

this war in ukraine is impacting the energy market. the continued lockdowns in china are affecting the supply chain china is a significant player when it comes to manufacturing goods that we purchase in the united states. those global factors are beyond the impact of american policy makers but they are impacting the american consumer and american businesses in significant way. nonet nonetheless, we have economic growth we have job creation but some factors remap the same we are better off that i would have expected post the covid recession. come back has been faster. it's been stronger >> it's a difficult equation for the incumbent party as we look to the fall leks when ever gas prices are as high

as they are now. they really at historic highs. when they move up this fast, it does not spell good news for the incumbent party. >> it's challenge. here is the question voters have to ask what is the alternative plan what is the alternative set of public policies that might yield a better result. i hope there's going to be a debate about that versus sort of a referendum on the challenges that we face in the nation today. i wanted to comment on jamie dimon and elon musk. i separate the two in elon musk's case, his business faces competition tesla dominated the electric car market now all of his come pepetitors e enter deucing electric or hybrid vehicles he has competition haes not had before that's going to impact his sale and his bottom line.

elon has a habit and a pats earn of over statements the and hyperbole. jamie dimon is a rped economic voice. i'm not prepared to embrace the profit of doom se fcenario. the average american should save money and take advantage of the fact that unploim is low there's been more cash to not just spend it all to the extent possible to save it, to provide themselves with a nest egg in the event that the a shock the economy or reface some sort of economic downturn. the message is for the american family, american consumers yes, money is tight. yes, things are tight to take advantage and to prepare for the future >> it's kelly here do you think the fed should be doing more you must hear a lot about how

frustrated and scared people are about energy prices and food prices and shortages this is not something we thought we would still be dealing with he thinks gas prices will be 5.50 in another month or so, per gallon >> it's always a delicate balance. they could overreact i think the fed has got to be balanced and they've got to be gradual in what they do there. tailoring their quantitative easing program they are raising interest rates almost at ef very single meetin. we want to make sure we don't create a stagflation style economy. we have high inflation and high

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welcome back to "power lunch," everybody. let's take a look at the ark innovation etf and nearly all comp are lower shopify down 11% of course tesla down just under n 9% right now the etf did see that nice bounce of 7% yesterday but with this we've gone negative on the week with a loss, tyler, of more than 5%. up next, tonic or tired stocks we'll highlight three names that are bouncing back from recent lows in today's three-stock lunch. we've got best buy, we've got

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welcome back, everybody. time for three-stock lunch and there's a list of stocks leading the bear market bounce but with more room to run they're all still 30% off their 200-day moving average but have a consensus buy rating on the

street the names through t. rowe price, bath and body works and best buy. here to trade them is gina sanchez, chief market strategist at lido advisers gina, welcome. let's start with t. rowe price, a quiet player but a financial nonetheless. >> yeah. this is a stock that's gotten beaten up with the rest of the financials it has performed in line with other financials and banks and they look effectively like they're pricing in the 2008 financial crisis all over again. however, lido owns this in the dividend growth portfolio. for the dividend, it is a very good value we think that it has just from a dividend perspective, a much higher price that can be supported. >> and that would certainly be a help for the performance's experience this year so far. let's switch gears and talk

about -- it's going to happen because we're doing this and best buy bath and body works. what would you do with that stock? >> bath and body works got beat up because they took quite a bit of an investment hit into their supply chain as well as into their customer loyalty program however, we think that those investments will come back over time if you look at bath and body works, they have a -- they have an integrated supply chain that is primarily north america based, meaning that they're going to be able to defend as we continue to have supply chain concerns and even inflationary concerns, are a lot more contained as their supply chain is integrated on the ground here in north america. >> let's move on to the next one, which is best buy you see a lot of best buy stores closing. that's been part of their strategy, i suppose, for many years now. >> yeah. this is one that we actually are a sell on. best buy is one of those kind of

consumer stories that doesn't hold it well in an inflationary environment, and a lot of the sort of pandemic-related home improvement decisions and purchases have largely already been made. if you're concerned about money and concerned about expenses, buying a big ticket electronic item probably isn't on the docket so we think best buy will have a rough time the next 12 months. >> do you know that company granularly enough to comment on its appliance business it went into, as you say, the home improvement trend seems to be ebbing just a little bit, but they have a lot of store space, footprint in appliances now. >> they do i mean the challenge there obviously is not just -- part of it is just inventory challenges. this is a company that's getting hit inevery direction. so, you know, supply chain issues will hurt them,

inflationary issues will hurt them they're going to get squeezed on all fronts and they had a lot of business that came from everybody upgrading their kitchens and making big improvements on the house so that was a tailwind now it's a headwind. >> what do you think, gina, about the fact we had an eight-week downrun for the dow, we put together one up week and now we're in the red again. >> that's a hugely concerning trend. i think that part of that has to do with the fact that the fed basically -- we started to hear signaling out of individual fed members that they really don't have any desire to put a pause on interest rate hikes, even though we're starting to see some -- we're starting to turn the corner in inflation and starting to see some of those numbers at least begin to tick down they're basically saying they're not taking their eye off of the rate hike ball soi think it's a really

negative sign. >> a little bit of a bear market bounce last week and now back to what had been the usual. the drinks are empty gina sanchez, thanks very much we appreciate your time today. >> time to go fill your glasses, everybody. thanks for watching "power lunch. >> and "closing bell" starts right about now. see you next week. the dow falling nearly 300 points and the nasdaq plunging by more than 2% with the major averages on track to close lower for the week the most important hour of trading starts now welcome to "closing bell." i'm mike santoli in for sara eisen. the s&p 500 down 1.4%. that's down about 1% of the week so it's hanging on to most of last week's 6.5% gain. the s&p 500 right around 4100. nasdaq the underperformer, apple, tesla, pretty big drags on the nasdaq today. it is a pretty broad-based pullback, though, with every