coaster move and we're now close to it. diane a thank you. we appreciate it our diana olick reporting. we'll look at the housing market that could hold up despite weakening demand "power lunch" begins right ♪ ♪ ♪ thank you, kelly and welcome, everybody, to "power lunch. i'm tyler matheson, here's what's ahead on a busy hour ahead. with crude at $122 a barrel we will hear from one of the biden administration most powerful advisers can he solve the problem by convincing oil-producing nation to increase their output and new talks to re-open ukraine's grain ports and without a breakthrough, there are warnings of a global food crisis and if not resolved, already high food prices could rise even more we do, kelly, have a big hour ahead. >> yes, we do, tyler

thanks stocks are going a little lower. the dow is down 290. worst performer is the s&p nasdaq reversal from the half percent gain and it's down now a similar amount and as tyler mentioned, oil breaking above $122 a barrel and going back to the highest since early march when it spiked to over 130 and you can see halliburton, exxon, baker hughes and new all-time highs for exxon finally as well and it hadn't taken out that previous 2014 peak so certainly something to mention here flipside, semis are struggling and intel off 5% who is predicting a negative preannouncement for the second quarter. intel down 5%. that's weighing on the dow amd and micron down 2% to 3% as well, ty >> think that, kelly one of the biggest questions facing investors right now is where are we in the cycle. our next guest has a framework to identify that and what's ahead and how to invest. he calls the framework hope. it stands for this, housing,

orders, profit and employment, and it shows the timing of when key economic data points slow as the fed tightens, and this is the year tightening catches up to profits let's bring in michael ca cantorwitz with piper sandler. we just showed that graphic, and i guess what this term lat does tell me that there is a recurring pattern that affects -- that maps the economic cycle that begins with the decline in housing and a decline in orders and a decline in profits and a decline in employment do i have it basically right >> that's right, and it simply spells out hope, and it always starts with an increase in interest rates and inflation, oil prices, food prices, things we're seeing today, probably the most robust tightening cycle we've seen in over 40 years and

while there's a lot of exogenous and idiosyncratic things happening around the world today, what we are seeing playing out in the hope cycle plays out in literally every cycle and so it helps you kind of understand where we are in this cycle in terms of how much -- >> and you say that now we have already seen housing starts start to slow. >> yeah. >> we have seen orders start to slow, i'm a khumming and now this is the year when we'll see corporate profits start to slow. >> the housing data peaked over a year and a half ago. the index peaked at about 90 it's now back down to 66 right now or 68. we've seen pmis or new orders and decelerate for eight or nine months and we expect that continue for another year. this is the time when we see profit expectation that are too

high and you're seeing negative preannouncements and we expect a whole heck of a lot more of that over the next few quarters and that's where we expect the bear market to reinsert itself when we see earnings season play out and companies miss expectations and earnings estimates have to be revised lower and then what we should start to look out for later this year and the beginning of next year is the strength of the employment backdrop starting to weaken. we've seen layoffs announced by those companies that have over hired during the pandemic and over earned during the pandemic. so they're forced to do layoffs. companies like amazon, but we believe that's just the beginning and the tip of the iceberg where you will see a much broader change in the employment backdrop. most likely next year after we see the profit slowdown where we are clearly seeing play out today. >> what if the profit slowdown doesn't get a lot worse. the other way to look at this is earnings are resilient valuations are not so yes, obviously they're coming

in a little bit, but could they actually prove more resilient and help stocks find their footing, so to speak >> they could. think, anything is possible. people often look past analogs like 1994 when we had the fed tighten rates and we had a soft landing and you can go through each one of these analogs that people are hoping for, no pun intended, but the reality is is the u.s. consumer going to step in and borrow a lot as interest rates stabilize or even start to come down and we don't think so? that's preceding the global financial crisis of '08. that's what gave us those soft landings and it was when rates came down and consumers came in and borrowed a ton of money. we just don't see it the savings rate for consumers has been drawn down. everyone has bought a house and probably done it in this cycle

and inflation is eating away at real income. >> so let's return third base here and bring this home to profits. how do i use this hope and make my portfolio dope, you know what i mean >> we want to look for stocks that can be resilient in a slowdown that comes from higher interest rates, higher inflation, higher oil prices, et cetera it's cyclical stocks and think about the companies that benefited so much in 2021 when earnings expectations went from being very low to extremely high it's those types of cyclical companies that benefitted from all of the stimulus from the increase in jobs, from the re-opening and in a way we are unwinding anything that we wound up in 2020 and 2021. >> and so you go with more sort of consumer staple stocks. we just showed hormel which would be defensive clorox which would be defensive and it was, of course, a pandemic play for a while in

general. michael, thank you so much thanks, my friend. bye-bye. >> we found the hope it's in whifskey it is apparently recession-proof and they reported better than expected quarterly results sales of jack daniels tennessee whiskey rose 20% and their premium bourbon sales up 17% and tequila sales up 22% and the source of problems for anyone else in the market those improved to 63% to 61% a year ago. here now in a power lunch exclusive islawson i'm the least knowledgeable person on the planet to talk about the spirits and everything it is that you do, but i fundamentally understand that there is some demand in elasticity here. what can you tell us how are you managing to put up such different results than others are in the consumer sector right now

>> look, the spirits business has been solid through this pandemic it's been very volatile. we've seen ups and downs and we've seen consumers move from restaurants and then back again. you've had tremendous volatility, but tremendous resilience and the business has hung together, which are the bars and restaurants, if the the for bars ask restaurants it was time so we we prior tieszed it ask had a wonderful year >> people are get become on ordering jack daniels. can you offer a backdrop here? there was a couple of years where the sort of hard seltzers were taking share from almost everything else. i don't know if that's the same

market that you are necessarily talking about here, but is there an underlying secular increase in demand for the kinds of liquor that you guys sell in particular >> yeah. if you step back 20 years. spirits has been taking share from beer literally for the last 20 years and like a lot of other consumer trends, during the pandemic, what was happening before the pandemic only accelerated. so that has been a source of volume for us for a long, long time the seltzers came in a few years ago and disrupted beer much more than spirits there was some talk that maybe the seltzers were taking away from vodka and gin american whiskey and tequila, between the two of them they drive the sales of our company and the other two categories in the spirits business and they're very healthy and we have two of the best brands in that space

and it all kind of came together for us. >> let me ask you a couple of quick, quick questions is tequila replacing vodka >> yes, it is. >> tequila has been amazing in the last four or five years. tequila on the lower end and made margaritas at it, and what's happened in the last four years there are super, ultra-premium brands where consumers enjoy a better drink and mix it with soda and a squeeze of lime. >> drink it with soda or whatever question two, is all of the jack daniels in the world made in one plant? >> oh, yes all in lynchburg, tennessee. chris stapleton and the whole thing. the key question is to me how do you judge with an aged product like jack daniels and i don't know how long it is aged, but for years, how do you judge

demand that far ahead? >> that's a great question and it is the trick to our business. 85% of our sales are of aged products scotch, they're more like t12 years and up we have irish whiskeys and the jack daniels franchise and what triggers, most of those brands are you need to make a forecast four to six years out and you never get it exactly right we've figured out how to do it over a multi-year history and we've gotten good at it. there have been times when we've had shortages. >> how much mark-up has there been at the retail level in the past couple of years and what shortages have you faced or anticipate facing? >> we've had short access and that's something we've had to

adjust with and you do raise prices when things are tight the spirits industry has not taken a lot of price in the last ten years. we changed that about a year ago and we did because we were able and cisco in our previous cisco year offset the cost that we had, so you had margin improvement and you have to offset the input costs that are cult i'll ask the father of the brands a hard question what's your go to? >> oh, you're going to get me into trouble >> give me two. >> i look woodfred reserve it's my favorite brand. >> i can't disagree with you, my friend >> he gave you one. >> that's all right. he's a manly man doing that.

>> thank you, sir. >> thank you all for having me on >> cheers. coming up, mortgage rates are up and demand is downfalling to the lowest level in 22 years. is a great reset under way in housing? plus sticker shock when booking summer travel. how big data is attempting to tays the pain of high cost gewa we'll cover that when we return. hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪

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welcome back, everybody. the mortgage demand falling to the lowest level in more than two decades down 21% from the same time last year as low invent inventory and rising rates continue to take a toll. the average rate is 5.4% according to the mortgage bankers association. our next guest says the market is weakening fast, and we haven't even seen the worst of it yet for more let's welcome in mark zandi, chief economist at moody's analytics. >> when i read that copy, mark, i think back to 2007 and 2008 when there was the housing crash. are we on track for something remotely approaching that? >> no, no, no. no, tyler. relax. not that a number of big differences between now and then, first, there's a very severe shortage

of homes today the vacancy rate across the housing stock for rent and for sale is pretty close to a record low. direct opposite back in '08 and the housing bubble there was a record high. second big difference is mortgage lending it's been pristine 30-year, 15-year fixed-rate loans and nothing complicated and two-year loans and underwriting has been excellent, and i just don't see any deepening in mortgage default and foreclosure. it's distress sales that cause a big price decline so no. the market will weaken and there's a comeuppance and nothing compared to over ten years ago. >> you have the securitization market and the ripple effects through there, that's sort of what triggered an awful lot of what went on in '07 and '08 and '09. there is a comeuppance coming

here what does it look like in terms was prices of existing homes and sales volume, of interest rates, et cetera. >> well, home sales are going to get housing demand that's going to get hit hard it already is. the run up in mortgage rates were up 5% for a 30-year fixed and that's two percentage points and almost three percentage points from the bottom a year ago. so if you're a first-time home buyer you're locked out and you mix the higher mortgage rates with the very high house prices and just can't afford the monthly payment and the buyers are locked in because who will want to sell their existing home and a low mortgage rate and buy another home at a much higher rate >> so home prices, i think they go flat nationwide, there is a lot of resistness in the market for sellers to cut prices.

you'll see the prices decline to some of the most juiced markets and finally, in terms of supply, that will hold up better just because, as i said, we had this very severe shortage of homes and in fact, a record number of homes going toward completion and we haven't gotten there yet because of the supply issue. >> does that spell relief mark for homebuilders and stocks. so i think homebuilders should navratilova gait this better than other companies in the housing, mortgage finance mold i know you've got beyond most economists what about inflation do you see signs that it's peaking or not >> it's peaked, in my view the consumer-price index was 8% year over year through the first

quarter of this year that probably will be a high water mark this friday will be ugly because we've seen oil and gas prices jump here because of the eu sanctions on russian oil so that will be an ugly number, but i think we've peaked and as we make our way through the year, the pandemic is a phase and the supply chains continue to iron themselves out and the worst from the fallout from the invasion is at hand and the $120 a barrel oil >> we talked a fair amount >> our thought on core inflation which is inflation minus a fuel, and i guess it's food, but that feels to me like calculating a batting average if you just take out all my outs. >> well, the reason why economists like that core measure and yet fed uses it is because that's the best predictor of future inflation.

because oil prices and food prices, they go up as we're observing right now and they will go down which we will observe at some point in the future so if you want to understand where that's a much bigger way of the economists. >> i feel better now >> there you go. >> thank you, mark mark zandi. >> up next, travel sticker shock. consumers booking a vacation are facing high prices and they're trying to offer more tools to help with the deal says. further on in the show, pain and grain. wie talking about the next wave of food inflation. don't worry about the core here. that could be headed our way before we go to break ut there the month of june, cnbc is celebrating pride month and here is ina frieh >> to me pride is all of the

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welcome back to "power lunch. travel companies have been waiting two years for this summer, but so many people are getting back to traveling that the prices have skyrocketed and it could be benefiting the booking companies like booking itself about a third of a percent today, expedia, trip adviser are still under pressure will sticker shock travelers turn to these sites for help in the deals. we asked seema modi with more on what these companies are offering seema? >> people visit travel sites on average 140 times in the 45 days before booking a trip. that's according to expedia, and we've all experienced this, right? you keep monitoring prices on different sites before deciding to book a vacation, what the travel operators are doing now is unveiling new financial

products that give customers more data that they can use to plan that trip expeed why's price predictor tool and machine learning capabilities to improve the selection of companies press ended. hopper, this is the highest travel company with the $5 million market valuation they'll pay a $30 fee, and if the room wasn't you expected, hopper will cover the difference it will freeze prices for two days for a $45 free and it comes as hotel occupancy is rising co-star data shows three-quarters of hotels in los angeles and san francisco are occupied and 82% full in new york we have a bunch of conferences this week where the price to book a hotel is over $300 compared to the $149 national average. that tells you that demand is

improving or rising, i should say, not just for the coastal cities and resort markets, but new york and chicago, as well, guys. >> i would say tourism is back maybe not fully back, but back in new york. seema? >> let's get to contessa brewer for a cnbc news update. >> hi, tyler today is your news update. lawmakers heard pre-record testimony from a fourth grader who survived the uvalde school shooting 11-year-old miah cerrillo calmly described how she saw her teacher get shot in the head and when the gunman went into the adjoining room she covered herself with her classmate's blood and she later used her dead teacher's cell phone to call 911. 14 schoolchildren were killed when a man drove into a popular shopping street. the students from central germany were in the city as part of a school trip

police don't know if the driver acted intentionally. since iran announced two nuclear surveillance cameras is extremely regrettable and counter productive the atomic energy board criticized iran for failing to explain uranium traces at its undeclared nuclear sites >> thank you very much, contessa brewer >> ahead on "power lunch," roku shares, employees are discussion the growing possibility of a netflix take over. we'll trade the stock. plus as oil continues to move higher, reports say the administration is actively negotiating with the saudis to try to lower prices. we'll speak to the top energy advisors ahead wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna.

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we have about 90 minutes left on the trading day and we want to get you caught up with stocks and commodities and the man charged with bringing oil prices down and the administration's person on that. let's begin with dom chu on the markets. the dow is fading just a bit in

the recent minutes. >> the markets have seen both positive ask negative territory to your points today and as you can now see, we are drifting towards the lower end of the session right now. the good news is the gains and losses right now have been relatively modest compared to the recent volatility. from a sector perspective it's energy and communications services and the outperformers they are right now the two and not only one sector on the day the materials and utilities are the laggards so far. a lot of the company-specific stories are in the mix campbell's soup, one of the biggest gainers in the s&p 500 after the packaged food maker raised its full-ier sales outlook and covid vaccine makers also on the look and moderna up after reporting its boost are shot and triggered a stronger immune response versus the vaccine against the omicron variant after it cleared a key hurdle in the approval process for the covid vaccine candidate in the u.s you have intel lower after

analysts at city said the chipmaker could possibly make a negative earnings preannouncement or miss current quarter forecasts and that has those shares lower and the biggest decliner in the s&p is altria which got downgraded by analysts by morgan stanley due in part to competitive risks in the future and weaker consumer sentiment and all things playing out and i'll send things back over to you. thank you very much. let's move over to the bond market where yields are continuing to move up ahead of friday's inflation report and rick santelli tracking the action for us. hi, rick >> hi, tyler you nailed it. this may cpi report that's coming up at the end of the week, we're looking at month over month numbers that are double the headline and up 0.3 the last look and on the year over year number we're still up 8% look at the intraday of twos and the intraday of tens and they both pop because investors

definitely overlooked, avoided and did not show up at the ten-year auction i gave it a d-minus and there was very little to be pleased about other than the fact that domestic institutions, hedge funds, pension funds they did step up and they were the only category that did look at the year to date of tens and 313s are high-yield close and yes, count them. today could be the fifth close above 3% since the fourth quarter of 2018. >> look at yields and here's one month of the euro versus the yen and it's near the seven-year high why is this important? consider this. if you own stocks, you see what the central banks are doing? so what inflation is doing consider that it was 1989 that

the nikkei peaked at 29,000. where is it now? that sounds good if you're holding equities for a country that wants to manipulate the interest rates tyler, back to you >> it's been a long time suffering in japanese stocks rick santelli, thank you very much let's go to the oil closing for the day, 2.5% today getting back to three-month highs set after russia's invasion of ukraine demand for gasoline still rising and you see west texas crude up 2% at 122 a barrel natural gas down 5% after an explosion at the largest lng facility in the u.s. john kilduff saying this could bring prices in the u.s. down, but impact exports which could send prices higher in europe there you see nat gas down about 7% meantime, let's bring in brian sullivan now brian just spoke in person with the person, president biden has%

ass assigned the difficult task of trying to bring oil prices down. what did you learn, brian? >> it's not an easy price and the oil price of the$122 a barr and it's works with the u.s. sector and saudi arabia and other nations around the world to improve his supply. his name is hockstein, a special envoy for energy security and arguably one of, if not one of the most important people in america right now for energy policy he has the ear of president biden. he travels the world in fact, he's trying to help broker that deal and meeting with saudi arabia. i'll get to that in a second and we are at the rbc power and infrastructure in new york, and we asked about gasoline prices and whether refining in america plays a role >> in the last two years of covid we shut down capacity in the united states and even more than that, in europe so we -- those are refiners that

are not coming back. we have to acknowledge that. so we have to manage an ecosystem where we need more oil production and more gas production and we also need more infrastructure and more abilities to make sure that our inventories on the east coast are filled in time for crisis times like hurricane seasons and the winter, et cetera. we have to make sure that we have supplies there and we'll do that, but if you look at the projection for demand of energy con consumption around the world as we electrify more and more, we will need to do something about demand and that's where the energy transition is not about which side are you on. it's not, are you an environmental guy? >> and i pressed hochstein on producers and are they putting more online and we got into all of that and i asked him about the effect of the str release not bringing down the price of oil and he said where would the price of oil would be if we'd

not done it and it is a fair point and the spr and the role that wall street is playing in oil production >> that production is not going to come online until towards the end of the year. so what we've done is we put a million barrels a day on the market between now and the end of the year. at that point, as we retreat, the private sector will be putting on another million barrels a day. i believe they can do more they believe they can do more, but their constraints are jnt just the labor force, but they have real, fiscal concerns because it's not washington. it's new york that's creating the problem in the city. the banking community and the financial community is saying if i have to choose between you increasing production even further and reducing dividends and share buybacks i'd rather you did a combination of both. we would rather they increase production especially short

production that can come online relatively quickly beyond the million barrels a year and we know 8 hun,000 will come on in 2023 we're doing our part it's just that it's not enough and it's not only about oil. >> tyler, hochstein is the person who is trying to brecker t broker the meeting between president biden and the saudis he said we're working on it. saudi arabia may be in the cards, now confirmation there, but hochstein has been on a plane to saudi arabia in the last weeks and months and maybe will broker a deal that entire interview, and the president taking a pragmatic approach in fossil fuels and the industry admits that that whole interview will be up on cnbc.com later today. hochstein, one of the key people behind the scenes trying to bring down oil and gas prices. >> maybe his actions speak louder than words at least for now in terms of what will happen with the saudis.

brian, thanks. brian sullivan the russia-ukraine conflict continues over fears of the global food supply growing president biden warning it will cost economies around the world billions is there a plan to get grain out ever ukraine, and if not, what at nt.s? th'sex think he's posting about all that ancient roman coinage? no, he's seizing the moment with merrill. moving his money into his investment account in real time how you collect coins. your money never stops working for you with merrill, a bank of america company.

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everybody hold onto somebody. [ roar ] welcome back talks today between russia and turkey to secure safe passage of ukrainian grain exports made little headway shipments have been mostly blocked since russia invaded ukraine earlier this year. together russia and ukraine export more wheat than the u.s. and canada combined. wheat prices are up 21% since the war started. ukrainian ukrainian president volodymyr zelenskyy said it could deal a blow to economies around the world. >> translator: to date, this is one of the more challenging tasks that we are facing that is besetting our economy and our exporters, indeed, because the

russian fleet has blocked it we are not able to export our grains abroad. i can mention some statistics, but once again, this is just the surface of the problem the top of the iceberg >> with us now is ed aad at the grain university of minnesota. it's great to have someone with your specialized, per tees here. my understanding is june is when the crop is ready for harvest in ukraine otherwise it could rot and maybe prices could spike further and what are we seeing play out as we go through the month here >> we have a lot of issues going on and thank you for having me on ukraine is a major exporter and just the fact that they can't move even much of last year's crop into world markets is a big problem. this year's crop, i think june

is a little early for their current crop harvest, but it's coming up in the next month or two. >> so this is peak season. very hard to put a finger on it. >> yeah. if that grain isn't exported, what could happen with both prices and with shortages? in "the wall street journal" i've heard people talk about the need to stockpile on wheat-based products can we get to a situation that extreme? >> they export primarily to africa, southeast asia they exsport to poor importing countries. we're not going to run out of wheat in the u.s. and even though we're coming off of a not so great crop in kansas ask next year, the spring crop is very

poor we're not going to run out of wheat here and we'll pay a higher price for it, but we won't run out of wheat here in our country. >> so let's say that ukrainian wheat and corn can't get out of the country. you've got last year's crops sitting in silos and presumably hitting their shelf life and you have this year's coming online and into those silos and it's not getting out or it seems that it isn't what is the solution here? where is the swing producer who can send more wheat to those stressed countries like africa where the country isn't rising prices and it's survival in many cases. >> it's availability the traditional exporters will have to step up and the european union, primarily france, the u.s., canada, and then the

timing here is very poor canada also had a very poor wheat crop in 2021 and there have been problems getting their crop in this year because it's too wet. last year too dry, last year, too wet, but the big exporters, argentina will be one of those players and australia, they'll have to step over the bridge ironecly, russia has a big crop coming and they will lead the world in exports once again in wheat. >> ed, how much more can prices spike, do you think? given what you see in terms of whether they can get grain and how much further can prices rise >> i want to cautionpeople on how much further they will rise. >> they've already risen i want you to understand that here in the u.s. wheat prices

are 2.5 times what they were 20 months ago we're talking about farm-level prices throughout the u.s. in excess of $10 a bushel frankly, as high as they've ever been we had a brief period in the first quarter of 2008 when prices were as high or possibly even a touch higher, but weir already there. could they go higher >> is this new there is a trickle out of ukraine? >> is this good for american farmers and if you want to look simply and how much money they're making on the sale of wheat. sure, it is. >> ed with the university of minnesota, thank you very much >> thank you and a latte to worry about j.p. morgan downgrading dutch brothers citing a consumer slowdown we'll hit that call and more in today's "three-stock lunch." ad

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time for today's three stock lunch. we look at some of today's biggest movers roku shares jumping on rumors of an acquisition potentially by netflix. however, sources tell cnbc there's no truth to the

headlines but a strong move nonetheless. dutch bros lower on a downgrade by jpmorgan and higher along with the rest of the chinese internet stocks up 27% in less than a week. let's bring in joanne feeney, portfolio manager. welcome, joanne. good to have you with us let's start with roku. what are you hearing what do you think? >> we're hearing something similar, the consensus today, it doesn't make a lot of sense for netflix to buy roku. netflix has signaled they want to get into an advertising tier of their subscription which would open it up to more potential subscribers who don't want to pay that high monthly fee. good for them. roku doesn't add much. they have the advertising so it might jump-start it. it doesn't make sense for us for netflix to pay for buying back into the business. and moreover, we're a little bit

wary of this case, a bit of a war going on between finding subscribers becoming much more competitive. and then also buying content is becoming very competitive. that does threaten margins, we think, and the battle for subscribers is going to compromise growth particularly in the short run as they really duke it out. not our favorite space >> that sounds like an avoid, kelly. >> let's talk coffee what about dutch bros, joanne? >> i love coffee, kelly -- >> don't we all. >> it is facing some challenges, and in particular their model of having the high-calorie, sweet, sugary, mostly cold coffee-style drinks is really pitching them to a younger crowd and the younger crowd may become more cash constrained over time because of the high price of gas and food and everything else, so that could be hurting them

but in addition, they're having trouble getting the labor. for those kinds of drinks, they're much more time intensive than a straight-up cup of coffee you get behind five people ordering these drinks is frustrating because it takes forever. that's a bit challenging their analysts say they've pulled back on their expansion plans. with the growth numbers coming down relative to when they went public, i can understand why jpmorgan would have downgraded them more importantly this is a space where there are not very large barriers to entry. when starbucks first came out, it was novel, like a good cup of coffee in a nice cafe. you were willing to pay a little bit more now sort of everybody and their uncle with open a higher end coffee shop. i think it's more challenging in this area to maintain, emote, be able to charge high enough prices and get enough foot traffic you can expand over time a bit more of a challenge. >> i learned the difference between cold brew and iced coffee very interesting final name, pinduoduo, chinese

tech company >> yeah, i mean, it's clearly one of the main players in e-commerce in china. there's a battle going on in e-commerce, more players there than in the u.s. where amazon is really dominant that will constrain them a little bit. they rely on others for that they're tied up with 10 cent and their payment system and that's a source of revenue for them more broadly when you look at china tech, what we're seeing and what moved stocks, china clearly signaling they're going to ease up a little bit on all these regulatory constraints that have really hurt the tech industry in china, so we prefer some other names, baidu, 10 cent not only do they have the search engine and the advertising but the cloud business and we're still seeing an awful lot of growth in the cloud expansion which i think will really help a company like that. plus, we see china, the government, really has an incentive to take off all of these restraints because they

have 10.76 new graduates in china that have to get jobs, and they really need growth to come back in order for those folks to find jobs. we can see this moving in a positive direction >> got to leave it there, joanne feeney we'll have you back soon appreciate it. so what's the difference between cold brew and iced >> iced coffee is coffee on ice. cold brew is steeped, cold water steeped in double the amount of grounds for many hours and then it is filtered so that the grounds don't -- that's why it has so much more caffeine. >> i am staying away from it >> makes me dizzy. >> up next, a deal in the sports world breaking records weavthdeilne he e tas xt and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity.

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children, children, children, the biggest price ever paid for a north american sports team, dominic chu with more on the sale of the broncos. >> the broncos >> waltons >> it is the waltons it's a markup, right, talking about confirmation of this deal. $4.7 billion or just shy of that record price for an american sports franchise, more than twice as much as was paid for the last record nfl franchise which was the carolina panthers purchased by hedge fund billionaire david tepper in 2019 for about $2.3 billion so the folks purchasing the broncos, the walton family, behind walmart rob walton, his daughter, her

husband, and, of course, melody hobson, current starbucks chair. a lot of moving parts here but, yes, they still need approval from owners and the nfl itself >> but, boy, if you are a t tepper, you're feeling good. >> imagine what jerry jones and the cowboys are feeling. >> true. thanks everybody for watching "power lunch." "closing bell" right now the major averages giving back most of this week's gains the most important hour of trading starts now welcome to "closing bell." i'm sara eisen take a look at where we stand in the market down about 300 points the low of the day down 345. most sectors in the s&p 500 are red. everyone, that is, except for communication services pockets of green, names like alphabet, meta and netflix at the top of the list on takeover chatter. small caps down