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 sector but energy in the red

right now for the day. you see the worst three, discretionally, communication services and tech. coming up, henry mcvey is cautious on this market but he will reveal where he does see buying opportunities plus the ceo of footlocker explains his plan for growth as nike moves to a direct-to-consumer strategy. stocks falling on the back of the strong jobs report this morning. those results are confirming expectations of more rate hikes from the fed which were reinforced earlier by cleveland fed president loretta mester. >> i'm not in the camp who thinks that we stop in september. i do think we need to bring the funds rate up and we probably will have to go above that long run fed funds rate in the s&p to be able to get inflation back down. >> now that closely echos what

we heard yesterday from federal reserve vice chair lael brainard when asked about a september pause. >> if we are seeing a deceleration in the monthly prints, it might make sense to be proceeding at a slightly slower pace. right now it's very hard to see the case for a pause we've still got a lot of work to do to get inflation down to our 2% target. >> let's bring in charlie and joseph to talk about all of this and the markets. joe, i'd love to start with you. that's a pretty consistent theme obviously from fed officials saying inflation is job one. the economy is strong enough for them to go relatively fast what does it mean as an investor right now? we've already priced in a fair bit of financial conditions tightening and valuations are down a bit, but is there more to go >> hi, mike, it's good to be with you this afternoon. i think there is more to go.

i think the tightening of financial conditions is going to continue the fed has a real challenge on their hands with inflation i think it all starts with inflation. today is a good example of sort of good news is bad news in a sense because we had a reasonably good unemployment report yet the markets viewed this as, well, the fed will be that much more aggressive. there you run the risk that there's a policy mistake if the fed pushes too hard to try to bring down inflation so bottom line, we expect volatility continue as you work through this change in the policy mix that we've had. >> volatility you expect to continue, joe, but i guess directionally do you have a way you would lean in terms of stocks or what looks like have been some opportunities that have been surfaced by a lot of the chop we've seen already? >> so i think a lot of the damage has been done that said, given that we expect a slowdown inform economic conditions, we would remain

defensive. we went in our asset allocation committee to underweight equities we hadn't been underweight equities in a long time. we've reduced the beta exposure in portfolios where we have that flexibility. so moving up in quality, lower in beta, remaining a bit defensive because we're not through this, as jamie dimon coined the term -- >> the storm hasn't struck yet charlie, you've been on inflation watch since before it was the thing to do. you're still on it now there's this line a lot of people are embracing saying we've hit peak inflation now it's just about the exact slope of decline what do you think about that, and what does it mean for the kind of stocks you want to own >> thanks for asking, mike by the way, have you picked your maverick call sign yet i think you should be mike

"chart" santoli. thank you for asking this. people are way too focused on whether we've hit peak inflation or not that's not the right question. if we're 8.3 on cpi and it goes to 8.2 and 8.1, that doesn't matter it's the absolute level of inflation that matters as i tell people, if inflation 7% this year and 8% next year, it is exactly the same from a purchasing power point of view as if it's 8% this year and 7% next year. inflation is communative so we are not down to acceptable levels yet the fed is not acting quickly enough or hard enough. after all these years of quantitative easing and buying $120 billion a month, they're only selling $45 billion they have an $8.9 trillion balance sheet and they're

selling $45 billion a month. that's way too little. there's a fed funds rate that's way too low. this fed is not acting strongly enough >> you already have mortgage rates from 3.5 to 5 and change you've seen corporate bond yields go up a similar amount. you've seen the typical slowing of the sectors that would respond first. doesn't it have time to work its way through the system if we can glide down towards 4% inflation by the end of this year. does that not help the markets >> we're not going to get to 4% this year, mike. we're going to be lucky to get to 6% this year. people are anchored in the old world. and the reason they are is because they have never seen a 40% increase in the money supply that we got during covid they have never seen this level of deficit spending. they have never seen a $9

trillion fed balance sheet so we are just not in that old world. not to mention all the commodity issues, not to mention all the supply issues. we have wages that are only now starting to accelerate so in my opinion people are still underestimating this and what that means for stocks is rates are going to go higher. that's going to be tough on growth stocks, good for value stocks particularly because i think we're not going to have a hurricane in the economy. >> well, that is reassuring. charlie, i know you like energy, fertilizer, real asset plays, things like that we'll have you guys back soon to see how it all goes. appreciate it. >> now, it's been a rough year for footlocker with shares falling more than 20%. up next, the retailer's ceo discusses his strategy for turning around the stock as nike shifts to a direct-to-consumer approach you're watching "closing bell" on cnbc.

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walmart is hosting day two of its shareholder event ceo doug mcmillan just spoke to analysts and the media courtney reagan joins us with the highlights hi, court. >> all that just wrapped up here behind me as i closed out the week's event the walmart ceo said, look, not a lot has changed since we reported our first quarter results but he said we did not enjoy the first quarter. we were kind of surprised by the pace of change and magnitude of the cost impact kind of in the

middle of the quarter on as we mentioned, we do see some changes with some really value conscious consumers. he acknowledged the pain of the first quarter and the stock reaction >> we didn't, as shareholders, enjoy that process we're all very vested and care a lot about what happens with the share price. but we are long-term thinkers. we care about the short term and manage the short term. >> and while mcmillon says there isn't anything that strategically concerns him, he does have some worries >> i am concerned about the inflation rate and should it stay at this level or go up and be there for a sustained period of time, i think that has a negative impact on too many families, and i'm concerned about that >> last downturn, walmart did lose some share to some of those dollar trips, for some of those fill-in trips, not the full basket kind. i asked him what would he do if

things fall off economically to prevent that from happening. he said we are focused on opening price points, particularly in certain areas of grocery. mike, back over to you. >> court, thank you very much. let's turn now to footlocker that stock higher by 8% since announcing its first quarter results in may the company updated its fiscal year outlook year to date the stock down 25% and down more than that since the highs of last year as many retailers are joining me at post 9 is the footlocker ceo dick johnson. >> thanks for having me. >> maybe just give a little pulse check on your customers. you did report earnings the last week or so you didn't really seem to think there was a big change in terms of spending power or willingness, but how does it feel right now >> as we went into our earnings call, the consumer behavior hasn't changed i agree with what doug just said, inflation is real and if

it stays there it's going to impact a lot of families but our consumer has a propensity, we have a broad range of consumers across the spectrum they continue to find ways to buy sneakers. >> they seem to, yeah. obviously if you look at secondary market prices for some of these model, it's clear there's a core of demand in a lot of ways. in terms of your share of it, how does things -- how do things look strategically obviously the nike relationship has been in focus. you may have less supply of some of their models an things like that what does that mean when one of your biggest and most important suppliers is a competitor? >> i'm old enough to remember when wholesalers were wholesalers and retailers were retailers. we still have a great relationship with nike but our customers have told us they want choice we had a lot committed to one supplier so our ability to bring in more

product from more suppliers satisfies the need of our c customer to have choices we have a great relationship with puma and those sort of things drive our customers and that choice is what fuels our future. >> the inflation piece of it, i guess the key for you is how much are customers willing to accept is it all about we'll pay up for something new and fresh but not on stuff that's been around. it seems like the inventory risk for a lot of change is now pretty much in focus. >> well, inventory is such an important thing in our business. we have to keep it fresh the consumer wants new and fresh. what we see as new and fresh, the consumer -- it moves so fast now. it used to be that things would make their way across the country and now they see something in tokyo today and they want it tonight that's just the way that it works. but our inventory is in great

position we're ready to fuel the second quarter and beyond into the back half of the year but it is important that we continue to bring fresh goods in and provide variety for our customers. >> as things stand right now in terms of things like the store count and staffing, does it seem like it's at the right place or are you going to have to rethink sizing >> we always review our portfolio. as we think about our digital and omni channel opportunities, i expect that we'll see our door count down slightly. our square footage not down quite as much because we're building bigger stores to provide more variety to our consumers and that seems to be working well with our community-based stores and power stores we constantly tweak our portfolio. >> dick, appreciate you coming by for the update. thank you very much. >> thank you. let's get a check on the markets. 45 minutes before the close. took a little bit of a hiccup lower. the dow down 370 right now, the s&p 500 sitting right on top of that 4100 mark that's been around the low for the day. still ahead, kkr's henry

mcvey on the better than expected may jobs report and how that could impact the fed's rate hike strategy and the market. check out some of today's top search tickers tesla taking the top spot today followed by the 10-year treasury yield, apple, amazon andee dre

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stocks slipping a bit in the final hour here. you see the dow down 368 the s&p 500 on top of that 4100 level where it has hit a floor a couple of times today, giving up most of yesterday's rally in the s&p. let's check out today's stealth mover, moody's, which is an underperformer in the s&p 500. barclays downgrading it from equal weight to overweight citing the current challenging macro environment. competitor s&p global warned

about the lack of debt offerings earlier this week. shares of novavax plunging after concerns about the safety of its covid vaccine meg tirrell has the details. >> hey, mike, novavax's vaccine finally now, it was originally part of operation warp speed at the beginning of the pandemic, now headed to the fda for its review on tuesday of the outside advisers we saw the fda's briefing documents come out today in it they mentioned some potential concerns around a risk to those heart inflammations known as myocarditi ss a and pericarditis there's still manufacturing information in process that would need to come about before they would provide emergency use authorization. also there's a lack of data on currently circulating variants the information they're assessing was really from up until september 2021, so looking

at the alpha variant, not even looking at delta and omicron in large waves. omicron is the currently circulating variant. novavax taking issue with the fda flagging this safety risk saying we believe there is insufficient evidence to establish a causal relationship. this has had novavax's stock today. tuesday is the meeting of outside advisers jeffrey's says despite these potential concerns they think there's a high probability of a positive vote on tuesday this has been very volatile through the pandemic. >> just a wild ride. this is like a $7 stock that got almost to thr300 and now in the 40s. don't miss meg's live coverage from the world's largest cancer research conference featuring the ceos of gilead, astrazeneca and merck. we have a news alert out of washington. a bipartisan group of

lawmakers has reached a deal on a federal privacy deal that would affect apple, google, facebook after years of stalemate. if passed this would preempt most state laws. that's been a major point of contention with business groups pushing for a single federal framework rather than a patchwork of state bills however, the bill does have some exemptions including for consumer protection laws as well as some provisions in california the bill also allows individuals to sue tech companies but not until four years after the law is enacted the bill would also place new limits on data collection and authorizes the ftc to enforce those rules, especially for kids it would also require companies to let consumers move their data to other platforms this bill does still face an uphill battle in the senate but this is the most movement we've seen on this issue in a very long time, mike. >> ylan, thank you very much. up next, kkr head of global macro and asset allocation henry

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what's wall street buzzing about today, a shareholder proposal calling on mcdonald's

to conduct a civil rights audit has passed this after the fast food giant's record on racial matters >> mcdonald's said it will conduct a diversity assessment via a third party. that shareholder proposal called for a civil rights add it to analyze the policies and practices on the civil rights of company stakeholders in a statement mcdonald's said diversity, equity and inclusion are at the heart of mcdonald's core values. we are committed to providing equitable opportunities for our employees, franchisees and suppliers. while we are proud of our progress, our efforts are ongoing an we will continue to focus on actions that have meaningful impact. the group that put forth the proposal says it hopes the company will listen to stakeholders' feedback in the process. they had encouraged shareholders to back the proposal at the meeting and we just found out the results late last night. back over to you. >> kate, fascinating any time one of these proposals

actually passes, we'll see where it goes and what the outcome is. stocks under pressure today with the three major averages on track for weekly losses. this despite today's employment report showing the u.s. economy adding more jobs in may than expected let's bring in henry mcvey henry, we say the market is down despite the strong jobs report but in part maybe it's because we are still in the six-month inflation scare and it seems there's something for the markets to be concerned about and keep risk appetites in check. >> i think our view at kkr is we are transitioning from inflation concerns, repricing in the capital markets to earnings degradation caused by inflation. our forecast in the near term is that earnings estimates need to come down quite a bit. we've really bifurcated the market into the price makers and the price takers what you're seeing in a lot of consumer stocks is they are

price takers and that's going to create more volatility. >> does that imply that from a macro level that the inflation peak is here and we can count on it easing back but it's not reflected in what companies are saying for earnings? >> i think that the peak is probably in. i think the problem is the rate of change. where i think we have a differentiated view at kkr is two areas. one is i think we think food and oil prices will stay higher for longer when you look at the forward curve for oil, it has it coming down probably $20 more than we think is going to happen so we see elevated oil prices for some time. i think food we think will continue to be problematic just given russia's invasion of ukraine. ultimately that's going to lead to slower earnings growth. i think you're seeing that happen at a time when the fed is tightening and that means corporate profit estimates are probably too robust. if you look next year 85% of the companies in the s&p are supposed to have rising margins.

that's not going to happen, particularly in this environment. look, we operate in asia, europe, the u.s. we have a pretty good window into the world and i'd say there are three things to focus on one is wages, two is oil, and three is the supply chain issues, while they're different created by the zero covid policy in china and russia's invasion of ukraine, those are creating dislocations in the market that we don't think ease quite as fast as maybe some of the optimists do so we're talking about a higher resting heart rate of inflation this firm. you guys have been reporting we've been active around real estate, infrastructure, asset-based finance and those are all things that are price makers i think they'll perform well in this environment but relative to a decade ago, this is really different >> yeah. i know that you also have been

on this from good spending into services spending as a long playing theme. where are we in that and i guess are there good ways to capitalize on that? as i look at the s&p 500, it's a lot of companies that sell a lot of stuff across the world. >> i think walmart and target were a wake-up call. walmart's inventories were up 33%, target's were up 43%. the economy is transitioning from goods buying to services. and that to me is a mega theme within services, great pricing power. we actually think that goods will have deflation in 2023. so even though inflation will stay high, you could have deflation of the goods sector. this year goods are up 8%. services you see a huge amount of pricing power you saw that in the jobs report today. travel and leisure jobs going through the roof, professional services going through the roof.

it's that time in the economic cycle for mean reversion i think some of the executives on the goods side were probably caught flat footed because they started to estimate demand was sustainable. generally we're a services based economy here and in europe. >> higher resting heart rate for inflation globally and meaning central banks have to stay on top of that. it doesn't necessarily sound like it's a recipe for the revival of tech and mega cap growth and the things that were beneficiaries of the disinflation >> we're long-term investors we have to get the 10-year theme right. the last cycle was about extending duration extending duration of fixed income and equities. that led to a lot of money going into tech and growth we still see a lot of opportunity, particularly around security and cyber but the multiples on those stocks need to come down the second thing is any time the market gets that concentrated, this is public markets, that

concentrated in a couple of names, you neither get regulatory surges or large numbers. that's what's playing out in tech you're seeing ceos start to represent that in the early 2000s, we talked about this with the financials and those companies. it's just a different chapter, but same story. >> would your premise be that inflation is not too near or how do you think it's going to go in terms of the actual economy? >> i think inflation is going to continue to be very detrimental to economies, particularly for low-end consumers. ultimately there was enough stimulus put into the system where i think overall consumer spending will remain okay, but there's going to be massive bifurcations just as we talked about goods and services so i think you've got to say here's the macro, but where are you investing? and we see this in some of the public data and ultimately how we think about things is you're going to have a real bifurcation. transportation costs are up,

food costs are up, energy costs are up the greatest increase in job changes is in that lower to middle income. they're repositioning for higher inflation. ultimately i think that will have an impact on the political landscape as well. >> henry, good to catch up with you. thanks for coming by. >> appreciate it. here's where we stand in the markets. the dow down about 350, s&p off 1.6% virtually giving back yesterday's rally, down a little more than 1% for the week. apple and tesla, big drags small caps outperforming a bit apple, a big drag on the dow as well after a bearish note from morgan stanley find out what atth analyst is warning investors about. we'll be right back. on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

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tesla ceo elon musk planning job cuts after saying he has a super bad feeling about the economy. and the stock is getting hit hard on that news. that story, plus bearish analyst calls on apple and micron when we take you inside the market zone lan for my b 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.

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we are now in the "closing bell" market zone. barbara duran is here to break down these crucial moments of the trading day, plus steve kovach and phil lebeau on elon musk's super bad feeling about the economy.

stocks sinking into the close. the s&p 500 off about a percent and a half the major averages all on track to post losses after the big bounce last week barb, how are you thinking about the setup? you could say 8% off the lows in the s&p. this week was choppy on the downside on the other hand, it's hard to see where we're going to get an all clear from the main concerns of inflation, fed and at least some slowdown fears. >> mike, you captured it perfectly. as you know, we've had five big rallies this year, from the beginning of the year. four of them failed, market went to new lows. this is our fifth one. up 10% in the last ten days. is this going to be another rally? i think none of us know frankly. we're watching we are all data dependent at this point, just like the fed. we're looking at the inflation numbers. we're looking at signs of demand destruction, like the jobs number was interesting the market did not react well

because i think there was a ses secret hope it would not be good i think inflation is much more likely to decelerate than accelerate we're seeing all sorts of little hints about that one of the things with the average earnings, hourly earnings, when you look at the last four months, they're only up 3.7%. year over year, it is coming down that's an important component of inflation. so basically until we see more come in and see how the summer goes, it's just going to be choppy and in a trading range. but my bet is we do not test the lows like we did previously because where sentiment is, where valuation is, 17 versus 23 pe, and positioning in the market >> yeah, absolutely. folks definitely are playing defense after this run of negative weeks before last week. in terms of individual types of stocks that might have become more interesting here, the nasdaq did have a 30% drop peak

to trough, the average stock in the s&p was down 30 from the high are there particular themes that have come up that you think make sense here >> well, it's interesting. a lot of people are still playing energy energy is up in general 60% this year hard to know if that trend continues. i wouldn't be going there. but i think a lot of people are talking about this there's a lot of mega cap growth stocks, which i have owned and ridden down sadly through this but a lot of them are down much more attractively in terms of their valuation. it's really a valuation reset. not because their fundamentals are broken or changed. for instance, yesterday, microsoft, their guidance was about currency reserves and the impact there that's not a fundamental issue for them that's maybe a one or two quarter issue. so there's opportunities like that that have been opening up all along. i think there's a ton of opportunity in the growth names. once the smoke clears, whenever that would be, you can make a lot of money going forward. >> all right well, apple is one of the

biggest drags on the dow today after morgan stanley warned slowing app store growth could be a near term headwind for the stock and financial results, although she did reiterate her buy rating and $195 price target that coming ahead of apple's worldwide developer conference next week. steve, what is behind this app store sales slowdown and what is apple able to do to combat it? >> yeah, mike, this has actually been going on all year when apple reported their calendar first quarter earnings, i talked to the ceo about this asking why have services slowed down they were down 27% growth a year ago and 17% this year. he blamed the app store, just like katie was saying, and these weird comps against peak covid when everyone was locked down and spending more on digital content and the app store. so that is what they're largely blaming it on. as we know, huberty mentioned we

saw decline month over month things are warming up, people are traveling more we know about the summer travel schedule that's coming and the huge demand there so it could get a little worse in the near term at the same time, to combat it there's a lot of stuff coming down the pike and more growth, especially in their app store advertising. this is what they do when you search for an app and another rival app might come up in the search results that's a huge area of growth for the app store and that can help combat some of this. further out if you want to look to the fall, we're expecting iphone hardware subscription service to come out and that means you get a new iphone every year for paying a certain amount of money per year or per month and they give you a bunch of apple services tied in so that could be a little bit of a boost towards the end of the year. >> obviously apple has some answers here they have done it before in terms of smoothing out that revenue stream, steve. barb, this stock down 20% from the high

it's held up so much better than many of the others yes, valuation has come in but still trades at a little bit of a premium, so how would you view it >> i am an owner of apple and i would probably buy it somewhere in here with extra cash. it is always a concern because the app business for them is a higher margin business and something they have been focusing on as part of their services what's happening here? part of it is probably a full forward in terms of demand post covid and that sort of thing but it doesn't change the longer term story there's two important parts to apple. one is the developing ecosystem, the engagement, the deepening of that connection and also their capital return this is a company that dwarfs even microsoft or google until terms of the cash on their balance sheet. it's over $200 billion they committed last month to another $90 billion share buyback increasing their dividend and that in itself

deserves a quality multiple. in 2020 the low on the multiple in march, which a lot of companies, the market just collapsed, was down to a 17, 18 pe at the high year endi it was up to 40. now, it might get cheaper as people start to cut numbers and anticipate a little short-term miss but if it does come in, i would be buying it. >> all right, guys tesla meantime is the biggest percentage decliner in the s&p 500 after ceo elon musk called for job cuts in an email to tesla executives because he says he has a super bad feeling about the economy. meanwhile cowen cutting its pry target to 700 from 790 and reducing vehicle delivery estimates because of ongoing challenges in china. phil lebeau joins us musk said tesla will cut 10% of its staff but that may not be across the whole company, right? >> no, it's not across the

entire company in fact in the email he says the hourly workers, they're unaffected because they're going to be needed as they continue to ramp up production so you're looking at your executive staff that might be cut by 10% and there was no other details surrounding this aside from separately from that elon musk saying he had a, quote, super bad feeling about the economy. so the interesting thing here, mike, is do we truly see tesla follow through with a 10% reduction in its salaried staff? and if they do cut 10% of the salaried staff, that's an indication that they are focused on the profitability of the company more than ever before. in the past we've been hearing a lot of discussion from elon musk and others with tesla, hey, we want to continue growing deliveries it's about growing deliveries. well, it's not just about growing deliveries at any cost, it's also about making sure you can turn the profit that will continue to grow the stock and grow the company so that's the interesting part

about this we will find over the next several weeks i'f this is truly going through with a 10% reduction of the white collar staff at tesla. >> yeah. i guess what's interesting about that, phil, it's one thing to say we were in mega growth mode, we might have overhired in terms of nonproduction staff but that doesn't mean you have to blame a bad economy for it it could just be the growth phase tesla is in? >> true. keep in mind the super bad comment is somewhat separate from the email to all employees saying we're going to have a 10% cut in the staffing at tesla the super bad comment i think might be more intriguing because, look, elon musk has probably a better handle on the global economy in terms of when things are shifting quickly, given all of their exposure not only around the world but in terms of raw commodity prices,

vertical integration within the company. i think that's more interesting, mike if he's seeing a slowdown, that is troubling certainly within the auto industry, but within all manufacturing as well. >> for sure, yeah. you have to pay attention to it even if some are saying it's also a veiled reference to the movie "super bad" but doesn't change the upshot of what he's trying to say, phil. micron shares also falling sharply. piper sandler downdpgrading it from underweight to neutral amid concerns about the broader economy. kristina partsinevelos joins us with more. could this be a start of a down cycle in what's always a very cyclical industry? >> i also womaant to echo steve. we are seeing a decrease in hand sets and pcs during covid a lot of us

upgraded our electronics what we're seeing different this time is the price for the memory chips in these handsets have dropped. given micron has almost 50% exposure to the end consumer market, of course they're going to take a hit. the second part of that equation is supply chain problems are easing f foxconn recently said their supply chains are starting to improve and so this bodes well for all of those smartphone makers and the chips that go into the smartphones lastly, the third part of all of this in the medium term, the excessive buildup of inventory, specifically within the auto sector micron is exposed. you have many automakers saying things are improving and this may not bode well for demand when it comes to the memory chips that micron provides. >> always was a commodity cyclical industry. i guess the case here from this downgrade is it will remain so

kristina, thank you very much. we've got to move on to amazon announcing that dave clark will step down next month. clark has spent the last 23 years at the company and a replacement has not been named deirdre bosa joins us with more on this. dee, why is this departure potentially such a big loss for amazon >> first, david clark played a critical role. he headed up the consumer business which is amazon's core and it comes at a challenging time for this business, when it's facing slowing growth over capacity perhaps some missteps in hiring. for him to step down is pretty crucial. it's just ahead of prime day in july which is one of the busiest shopping days for amazon as you said, mike, he was there more than two decades. one of amazon's strength has been its bench of executives, its veterans that have been there for nearly as long as jeff bezos. they lost jeff wilke and a few

others who were seen as bezos' lieutenants. it raises a few questions about succession we new andy jaffey got the top job. but it is a critical time for him to step down and that's why it matters so much. >> barb, this comes at a time, obviously amazon has had a tough time in the market it's down 35% from its high even after some strength. a lot of people looking outside of the retail business within amazon to say where the value really lies. this idea that it's mostly about logistical costs and overinvestment in retail that has hamstrung the stocks, so is it an opportunity that it has gotten down this far or is it time to stay away? >> certainly a few weeks ago this stock was ridiculous. down here it's still expensive on a longer term pe. i'd like to see how this stacks up with walmart who's really

gotten with the program and doing i think a great job executing. they still have a lot of underpenetrated businesses that they are working to expand this is not a one stop or one trick pony plus aws is a relatively small portion of their revenues but that is fast growing and continue to take a bigger piece. in the long term i think you could add to positions or start positions here, but the question is on the e-commerce, what's really happening is it really the switch that everybody is rushing to do -- fly here, go here, go out to dinner and so they're not shopping as much inside? it doesn't disrupt the long-term trend. e e-commerce is here to stay and will continue to get a bigger stay but it really is a question how long this pause will last. >> for sure. deirdre, thanks for the color on this stocks near session lows heading into the close

the dow is down 345, s&p 500 still hovering above that 4100 mark down about 1% for the week, barb do you think there's anything that we're going to be learning about the next catalyst, the next driver of this market, i guess ahead of next friday we have the cpi number? >> you know, i don't think so, mike, unless we suddenly -- smfz things not factored in in terms of upside surprise, maybe there's a resolution in ukraine. china is reopening shanghai is ending its lockdown so i don't think there's data coming out of there any time soon i think we're just going to be hanging like we used to in the old days back when you had dr. doom and gloom talking about interest rates. we're hanging on every cpi number, every inflation number out there to see what it's telling us. >> we're also, of course, very related point, crude oil, brent

and wti above 120 right now. that has clearly translated into strength for the energy sector but a little bit at least of a perceived headwind it seems as if that might be one that's going to be with us for a while. >> i think it's not only -- energy prices are going to stay high we're not seeing the supply turn on in very many places you have china reopening and you also have high food. food and energy, which is not in those numbers, and that's going to impact the lower income consumer, which is for instance why i have started positions in dollar general because there is going to be an impact in the economy. but again it's the lower end because a lot of people still have savings they're spending them down, but they have jobs so the spending is going to continue that's why i don't see this economy -- even the fed raising rates, they're still not high in absolute terms they are compared to what we were used to, free money basically, but i think we're going to continue along. but it's the lower income that's

going to be hurt by these commodity prices. >> for sure. and dollar general has been a relative outperformer. barb, appreciate the time. great to talk to you on this friday meanwhile as we head into the close, the s&p 500 again down near that 4100 mark. we're basically up 9% from the intraday low and have backed off that the breadth has been negative. it's basically 3 to 4 to 1 to the downside look at the 10-year treasury yield. it has taken another turn higher the 7-year note got to 3% earlier after the jobs numbers suggesting the fed will remain with inflation as job one and looking for an opportunity to pause. the 10-year note now at 2.95%. the volatility index has popped a little bit it's 25. if you look at it, it's created this new range in the last six weeks or so. the floor has been around 24,

25 it's gotten up into the mid-30s briefly. it just shows you a general state of agitation without any outright panic we're kind of stuck between inflation and recession fears. as we go out, the dow jones industrial average down about 350. we will be down somewhat for the week that does it for "closing bell." now let's send it over to "overtime" with scott wapner mike, thanks so much welcome to "overtime." i'm scott wapner we're just getting started in just a few i'll speak to brenda and rob of the halftime investment committee as we wrap up yet another turbulent trading week we do begin with our talk of the tape, whether stocks d overcome a hawkish fed, a falling apple and talk about the state of the economy. let's ask adam parker who is back with us it's good to see you welcome back. >> hey, good to see you, as always. >> you have like a one in five record of stocks being up to down and here we are again