to expand capacity of our ports thanks to the bipartisan infrastructure law look, this is a time we took a different approach also to trucking remember last december we brought together industry and labor to tackle problems facing truck drivers. it took the double -- we added double the number of commercial driver's license in order to speed things up. we did it. learning. the result, we have record-setting employment and trucking earlier this year and the wages went up even after accounting for inflation we will keep at it, with a new super chain envoy. general steve lyons. general lyons is a four-star general and he handled the transportation command and only tens and millions of things from little things like tanks and

aircraft and all kidding aside he's come off the sidelines and he's helped us identify and get ahead of the challenges that arise at our ports and our railroads and on the road. this is about reducing costs for families you know, i have to admit to you a lot of us in elected office have been in office for a while. it make makes you viscerally angry. if you had them in front of you you'd want to pop them there are nine -- nine major ocean line shipping companies that ship from asia to the united states. nine they tomorrow three consortium these companies have raised their prices by as much as 1,000% so everything coming from asia, 90-some percent of it, the stuff

coming from asia they raised it by 1,000% that's why i called on congress to crack down and they're foreign owned, foreign-owned shipping companies that raised their prices while raking in $190 billion in profit, a sevenfold increase in one year sevenfold increase, 190 billion. they'll act soon to crack down on the companies as i've asked and i'm grateful under speaker pelosi and john gerundi for leading this effort. thanks, john it's a big deal. people at home trying to make it paycheck to paycheck are wondering what in god's name do nine shipping companies have to do with it almost everything you're doing, everything from what you're eating to what you're having to drive to what you need in your

home and related is the supply chains and what's coming from abroad i'm doing everything in my power to blunt putin's price hike and bring down the cost of gas and food i led the world to coordinate the largest release of the global oil reserve in history. 240 million barrels to boost supply and keep the prices from rising even more thanks to america's leadership in diplomacy, we asked to triple the natural gas systems compared to last year and i'm working closely with our european partners to get 20 million tons of grain locked in ukraine and already in the silos now ukraine and rush a the two major suppliers of grain and corn they have 20 million in their silos right now. so we're trying to help them and they're blocking the export and they're not allowed out in the

plaque sea and we're trying to get them here from around the world and we'll bring down prices there's more there's more than one way to solve this problem we're continuing to work to bring down food prices and gas prices to save money by dealing with other items my dad used to say, it's all about the standard of living how much do you have left in the paycheck at the end of the month? how much is left to do the basic things so if you add up all of the things that people need just to do everything from take care of their kids to turn the heat on or the air-conditioning on and everything in between, there's a lot of ways we can reduce their cost -- their cost of living other than while we're trying to get at the grain and gas we laid out a plan, for example, lower prescription drug costs. that would fundamentally affect the well-being of every family those of you who know somebody who has type 2 diabetes and has

an insulin requirement monthly you know it costs an average of $647 a month it can cost as high as a thousand do you know how much it costs to make that one vial of insulin? $10. t-e-n, $10 no other research has been done since it was invented and the charging is outrageous, so i think we should be able to do medicare do what they do when they deal with the va. va says we're only going to pay so much for this because the medicare negotiations and the price for it medicare is able to negotiate the price of insulin, guess what it comes down a whole hell of a lo lot. outrageous numbers we put a cap and they'll still make a significant profit. $10 to manufacture, 35 bucks we can begin by lowering the cost of high-speed internet because what you all did dealing with the -- with the -- with the

infrastructure bill. working with the service providers, we cut the price and raised the speed, potentially lowering high-speed internet bills for the average family $30 a month. okay well, you're paying an extra $30 a month for your gas, but that still increases the money out of pocket and the decrease amount the point is we're doing everything in our power to lower costs to families, but congressional republicans led by senator rick scott have a different approach, and if you didn't write it down you would think i was making it up, and i mean it sincerely. rick scott tried to change his words yesterday after he's the guy that had the re-election of the senators on the republican side he realized that raising taxes on american family was unpopular. anybody, no matter if they're on welfare, everybody should pay a tax. everybody should pay a tax here's the truth

one concrete plan that i laid out will raise taxes on working families an average of $1.500 a month while we have 54 corporations out there that didn't pay any tax the last two years and made $40 billion they don't want to tax them at all. they don't want to tax billionaires that are literally paying a lower tax rate than long shoremen are paying, literally on a percentage basis. so he hasn't walked back from his plans on healthcare. he says what we have to do now that we've finally got the affordable care act functioning and it's down $400 for people. he wants to eliminate it again so, and by the way, the one that's the best thing that they're pushing now in the elections is that they think that medicare, i'm not making this up, go online and look. medicare, social security and

medicaid go on chopping block at the end of five years. every five years med carry social koouritity and people paid for their social security they paid for it people say they'll never eliminate it all and what they'll do is they'll be able to pick it apart and cut it back. that's the whole objective, and folks, you know, it's not right. it's simply not right. and i disagree this is not your father's republican party this is a different deal, it really is. i work with a lot of honorable republicans and a conservative republicans when i was a senator. this is the maga gang. this is the maga crowd i really mean it they have a fundamentally different view of the role of government and who should pay what

and i'm going to work with anyone, democrat, republican, independent independent to find solutions for families because of the strong foundation we are better positioned by every country in the world to overcome the global inflation we're seeing and to take the next step towards forming an historic recovery and the new moment, and i count recovery from going from where we are today in terms of the economy to stability and to make it stable. it is strong as can be, but for inflation, but for gas and food, and look, we have to keep coming together to find common ground to solve problems like we've done in the ports and trucking we continue to build the extraordinary progress we've made we have to continue building this economy from the bottom up and the middle out, and i mean that literally i am so sick and tired of trickle down economics it does not work when the middle class is doing

well and they do well because of labor. when the middle class is doing well, the poor have a way up and the wealthy do very, very well they have never been hurt when the middle class is doing well never. never. it was about time we gather and remember who we are to get a lot of this done, but there's no better place to start than right here on the port and letting those nine foreign shippers understand the ripoff is over. thank you. thanks [ applause ] all right. >> we will make sure that everyone knows exxon profits why don't you tell them what exxon's profits were this quarter? exxon made more money than god this year, and by the way, nothing's changed and they're not -- one thing i want to say about the oil companies.

you talk about how -- they have 9,000 permits to drill they're not drilling why aren't they drilling because they make more money outproducing more oil. the price goes out, number one, the reason they're not drilling is they're buying back their own stop which should be taxed, quite frankly, and buying back their own stock and making no new investments. so i always thought republicans were for investment. exxon, start paying your taxes thanks [ applause ] >> that was president biden speaking in california at the port of los angeles at long beach on inflation and it was not just inflation that he hit on there he, as you heard at the end, he hit on the profits that companies like exxon, he says, make from rising oil prices as well as what he calls the

gouging profits made by nine foreign shipping companies that have made in his estimation some 170, i believe, it was billion dollars, he said in excess profit from a year ago benefiting from supply chain haggles. let's go to kayla tausche who is with us to sum up the details of what the president said and for a little bit more context. there was certainly enough said, i think, kayla, about inflation, but a lot said about other things that are of a more, let's just say partisan, non-economic feel. >> right tyler, we heard from the president today much of the same message and the same drumbeat on inflation and what he plans to do, pointing fingers at corporate america suggesting his legislative package would go far. it's hard to see, though, as the data worsen, how this message

lands any better with the american public especially after this week. we saw the treasury secretary on capitol hill asked about whether corporate greed and price gouging was responsible for inflation. she said that's just simple su supply and demand among consumers and she did not dispute there was not corporate greed that was contributing to that certainly, if you have the treasury secretary suggesting that then is makes it harder he was talking about the work the administration was doing to unjam the supply chain and certainly, there has been a lot done to get containers off the chips and to get semiconductor chips off this country, but if you look behind the curtain of this report you see it's not that simple and take used cars, for instance whis officials tell me even though there have been more ships that have come in to make more cars, now there are other parts that are stuck in china because of covid lockdowns or in ukraine because of the woar there.

after three months of falling, the price of cars are up again there are a lot of problems in this report and a lot of problems for the administration to tackle and the traditional message is not, w working here. the president believes there's efficacy there and he continues pounding the table tyler? >> kale a thank you very much. kayla tausche reporting. kelly? >> they're down across the board. the s&p is down 100 and the nasdaq is down 37, so again, the nasdaq is the hardest-hit sector the selling is broad based across consumer discretionary in particular tech and financials are also big laggards these indices are on track since january, as you can see. the two-year treasury yield soaring to its highest level since 2008 after the hotter than expected cpi report. this is seen as one of the most sensitive measures of rate hikes and the market is expecting more

now. the ten-year yield climbing to 3.15%. our cnbc market reporters are standing by with more of this hour bob pisani on the stock sell off and frank holland on tech and rick santelli on the bonds. >> bob, let's start with you >> we've had a modest little rally off of the lows. we were down to 3900, oh, about an hour, an hour and a half ago and that, interestingly, was the old low that we hit back in may that would be the 52-week low, so everyone is looking to stay above 3900, at least the bulls are and why did we get a modest rally and oil rallied and it went to 118 and it went to 120 and energy stocks poked their heads out and eog, chevron, for example, were modestly positive during the day and oil is the new tech and the other is

consumer staples, so proctor, hersheys, kroger, for example, all in the green that's the group that helped don't kid yourself and a lot of sectors are round trips, head and shoulders and they were moving up at the end of may and moved up 10% or so and those are new lows today on the transports, for example. new lows on the financial sector and goldman was at a new low and wells fargo was at a new low and for reits and simon property group and all at 52-week lows. interestingly, a couple of big movers to the down side, payment systems. i watched payment systems and they're proxies for consumer's health overall and the theory is people would spend less if they think things will be difficult and you see paypal, block, affirm, mastercard all weaker than the overall market today. another group i watch a lot for sentiment or asset managed you might think what do they have to do with anything, but if

the economy turns down notably, there's less trading that goes on so tries, blackrock, franklin and janus. s&p, we're watching 3900 would be it is old closing low on may 19th we're above that right now back to you. >> all right, bob, thank you very much. let's go over to the nasdaq now. frank holland, tech stocks down more than 3% frank? >>. >> docusign with soft billings guidance and that's money they expect to see from customers in the near future and inflation would hit the full-year returns and cpi coming in at a 40-year high and the ten-year spiking above 3.1% and broadly hitting tech let's take a look at the xlk, etf. and the cloud computing etf and the cyber etf all hit hard by the ten-year spike and you see the reaction earlier this week and later this week is the ten-year spikes. cybersecurity and not sure if

the narrative still is now the online shopping and logistics business, with two-thirds of revenue giving the most exposure to consumer and google outperforming this group, at least down more than 2% think, we have to look at what's working today on the nasdaq. chinese internet stocks, pin d duo is before the new shanghai lockdowns and also kraft heinz seen as having the pricing power to pass along rising costs due to inflation kelly, back over to you. >> thanks, thank you very much let's turn to the bond market where the yield is rising. rick santelli, what does it all imply? rising is what balloons do, zoom, zoom, zoom i brought out the numbers this morning pretty much across the board. whether it was cpi month over month, year over year and

whether it was the university of michigan and not to mention the one to ten-year inflation hotter than expected and if you look at a two-year note yield it is up on the session and as kelly pointed out in 2008, we're up 40 base points on the week and look at the ten-year hovering out 314 is up over ten basis pointses on the day and 20 basis points on the week and just today alone is 14 basis points flatter and it's nearly 20 basis points flatter on the week. these are unbelievably long numbers and it didn't fare much better and it's just as responsive to our numbers and we've led the charge on inflation and everyone else to some extent is catching up and we'll get a boon for one week and it's up 25 basis points on the week and finally, the there are index wasn't that long ago and it looked like we'll be at 101 and maybe going back down

further and what is it doing instead? and it's up nearly a penny on the day and these are huge moves and the reason is clear. inflation is back and it doesn't seem to be going away. kelly, back to you >> rick, thank you very much rick santelli. >> all right cnbc contributor josh brown on the halftime report made an impassioned statement to investors saying the market has a direction and today's market sell-off has to be taken seriously. >> you can say anything else being fine because everything costs more you have to spend more money than you had to six months for the same crap you're buying. how do you not understand that the consumer is still spending they have no choice! they have no choice! this is not complex. we've been in the bear market since the spring and we broke below the 200 yield average and

we had the curve inversion around the same time and it may not be a technical recession for today, for the consumer and they feel like it's a recession and you see that everywhere you look, so i understand that unemployment and headline unemployment is great, but if their cost of living is in excess of what they're making that their job, it feels like a recession. >> ron insana, schroeder senior adviser, gentlemen, welcome. >> what do you say to that, keith, that josh brown just said it may not technically meet the parameters or the definitional cues of a recession and the market may not meet the parameters of what is a bear market about it feels that way i agree with him, it just feels that way >> gjosh, he's right

if the americans are feeling like their wallet is pinched, it doesn't matter one end of the penny to the other what the government says, what the inflation print is and what the latest report is and what yellen says what the average american feels and knows and feels in their wallet is my breakfast costs 60% more than it did six months ago and my gas has doubled and i now have to worry about going to work, putting a roof over my head and paying for my insurance and that's yet numbers are so bad and it's all about psychology and josh nailed it. ron? >> josh's performative elements not withstanding and i don't agree with his perspective i wouldn't say we are yet in a recession, technical or real and inflation not withstanding are a meaningful jump in unemployment and a contraction in gdp so yes and no. we did have a contraction in gdp

in the first quarter >> in a way, that was a contraction. and you can't have a recession when you're hitting new lows in unemployment that's just not consistent with the definition and the actual definition of recession. what i fear is the fed will pound this nail until we actually go into recession and there may be a deeper one than we're expecting and the yield curve just suggested and the stock market is falling and certain commodity prices like lumber have plunged. so we are getting leading indicators that a recession may well be in the cards and i think that's what the worry is the problem for consumer is not the weak economy it's going to be an inflation problem that will be solved with a recession. keith, if i am an investor who has held on and am diversified and i have my money in a plan that i felt comfortable be

are we in a bear market, should i be considering selling or should i take capital off the table which is probably what i should have done on january 4th of this year. >> hindsight is 20/20 and no good deed goes unpunished, right? if you look at history be the thing you have to ask yourself is how much time do i have in front of me not where has the market been? when history makes abundantly clear, tyler is this stock, as bad as it's going to get eventually passes. so what i like to do, is when i'm in doubt i will zoom out and i'll look unless you have something that you can generate the capital for and otherwise i would play offense at where we will be in three, four years out from now it's tough and scary and feels bad and the psychology is you play to win, you don't play not to lose. >> ron, let's go back to the fed's policy mistake here. is there anyone who thinks the

bigger mistake would be not tightening enough right now? because this is -- we learned this morning it's pretty bad >> the consumer sentiment report is terrible. it's at a record low this is like a 75-year-old series, real wages are down, real spending is down. consumer sentiment and expectations are down. it's hard to see the fed tightening is more and it headed off and helped it not get this bad in the first place. >> you and i have gone around on this a couple of times i don't know that raising interest rates would solve any of the underlying issues that caused inflation in the first place, and i'm not going to back away from that perspective i've been wrong on where inflation is going the fed can raise rates 100 basis points at every future meeting and it will still not get you more semiconductors and it will still not get you more labor or cars in your home in fact, quite the opposite will happen they'll engage ultimately with volcker or vietnam-style

strategy where you destroy a village to save it, and i don't know what the administration or the federal government can do other than create some sort of marshal plan to boost supplies of materials and finished goods that are in short supply and that's not a near-term fix if all you've got is a hammer and so the fed will keep hitting the nail until it appears to work >> yeah. keith, maybe you can weigh in on this, as well, but the fact that let's just call it what it is, overstimulated in response to the pandemic is why we have these problems in every part of the economy and not just in energy right now >> i think ron's right on it, and i think he's underemphasizing the significance of his point. the fed can raise rates until the cows come home, and it will do nothing to address the underlying fundamental probl we've got to get money out of the system and it's not being caused by too little mono pep it's being caused by too much money and maybe there's a modern version of ccc that can be

formed and go immediately into the infrastructure and supply logistics. they've begun being worked on. politics aside, policies aside, transformation aside, they can get back to american energy production and it would at least make a dent in the gasoline and that would go directly to american consumers so i think ron's point is really interesting. the fed has got a policy problem. it's not got a rate problem, it's not got a risk problem and that will be tantamount to admitting it has two new errors in a row and they're behind the eight ball >> and on that note -- >> well -- >> sorry >> there are so many points to make on this, and i partly agree with keith, but the problem is there's no -- we don't need a back to work policy. we have more jobs than we have available workers. we need more people and the fed can't print people, right? that's the real issue. that's a labor market issue. the fed can't make computer chips. >> they printed too many jobs.

>> 3d printers can't make people all right, guys. thank you very much. >> appreciate it >> what was that statistic you had in the last hour or maybe it was at the top of this hour about the number of weeks in a row that -- >> yes, for the markets and for the dow this is down ten weeks out of the last 11 and we have not had a stretch like that since the great depression >> unfortunately, and that's from our desk. so thank you to peter shacknow who had that for us. with the market selling off on the hotter than expected cpi report let's take a look at what the stocks are saying. let's run through it, jessica. do you have glimmers of hope for us >> yeah. i'd love to run through it i think it's important to take a step back and look at the overarching picture of the s&p 500. i want to focus on a broad-based market because that's where we

can see true trends and the health of the economy especially from a technical perspective what i want to share with you is a five-year chart with the weekly moving average and if you notice the weekly moving average, every time the market hits a bottom, it goes below this moving average before it rallies and goes above additionally, whenever the market is above this moving average it's a secular bull market overall so think about the way the fed's even looking at the market when they're trying to understand raising interest rates and all we're still up from those lows from that pandemic and overarchingly, even though it's a bear market, it's a secular bull market if you look at the overall picture as the s&p 500 is over that 200 weekly moving average. >> all right that's one sort of aspect, and where is the takeaway? >> so the takeaway is where are we spotting the bottom if any time the market rebounds and it gets back into rally territory is when it goes above

this line. so since this is a calculation, if we find an area of consolidation, the s&p 500 right now is supporting 3900, we have more value there those averages are going to intersect at some point. so right now i'm spotting 3500, but i'm hoping that we'll find an area of support likely defended today around 3900 that will move that average up and as soon as those lines intercept which is the market and the 200 weekly moving average then that's where i will call a bottom >> all right so you're not ready yet and the potential down side and also areas that can help us avoid going back to 3500 quickly on energy. what are your thoughts there >> i think that's something important to watch out for because what's really contributing to inflation like everyone has been saying repeatedly is the hot labor market and high energy cost so energy is a great sector and we look at xle and it's something

that's performing well for the broader markets to perform better we need a pullback on energy and it's something to watch and something to be bullish on in the short term >> jessica, can you give us a quick read on apple. i'm sorry i've asked you to do all of this quickly. it just feels like that kind of day. we want as much information about the market as possible apple is kind of of a bellwether here as energy is, too what are the apple charts telling you? >> yeah. apple's a great stock to watch and makes a huge component of the market and keep in mind even for comparing the market and the great depression and looking at those downturns that happened prior. there are new securities in the s&p 500, as well and one of those is apple that makes a huge chunk of the major indices, but apple is something that's easily tradable right now it finds areas of support and resistance and that right now is 137 to 150 and it's like a ball

bouncing from floor to ceiling apple is a great one right now because it's not falling below the 137 area and not going above 150. it's just something to watch and something that could be interesting to trade short term. >> all right jessica, we'll leave it there. we appreciate it >> all right ahead, more on the sell-off today. the dow down about 700 points and plus the inflation ripple effects. how rising prices are hitting homebuilders and every component that goes into constructing a new home some of the biggest laggards in the s&p 500 and homebuilders and etf today and there you see, lennar, hoooand coaflr der d mohawkyou all that's the one with the amazing camera? yep! every business deserves it...

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let's kick it off with the materials most discussed, lumber lumber prices have come down sharply in the past few weeks, but over the year they're still up 22% roofing costs are up 15% since before the pandemic and almost every kind of concrete is up 7% or more and insulation for your home is actually up 17%. the industry is saying that material, labor and shipping delays won't normalize any time soon, i.e., don't expect these prices to reverse course quickly. so moving on to another part of the house. let's examine the kitchen, stoves are up 14% over the past year, refrigerators up 9%, cabinets up 13% and countertops soaring 11% since 2021 the national kitchen and bath association telling us plywood is harder to get because prices are up fourfold. material availability continues to be an issue and contractors are resorting to clievents' third or fourth options. they also note those increased

labor costs which are further pressuring prices. next week we'll bring you, tyler, the bathroom and the bedroom. >> i can't wait. >> i can't wait. >> we will bring it to you and we'll tell you what's been going on there >> every one of those categories was a double-digit increase. >> and fairly consistent. >> despite the fact that lumber has come down off its highs from last year. >> yes >> it's breathtaking. >> it is >> ahead on "power lunch," more on the market sell-off will the tech wreck continue we'll speak to citi's global head of investments and why he thinks the group will rise again. check out docusign leading the decline. we did docusign down 33% fintech slammed, coinbase and block leading the declines there. "power lunch" will be right back

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to jurassic-themed at-home activities. join over 3 million members and start enjoying rewards like these, and so much more in the xfinity app! and don't miss jurassic world:dominion in theaters june 10th. welcome back the dow remains about 700 points, 726 lower after inflation came in hotter, much hotter than expected in this

morning's report is a recession inevitable, and what would that mean for your investments in the month ahead let's talk to citi's chief investment officer, david, welcome back good to have you with us i know in your notes that you say you think the economic expansion can cont if,, the consumer remains healthy and two, the fed can moderate its current aggressive stance against inflation. weav we've got a consumer report that indicated that the consumer was not feeling particularly ebullient and number two, why would the fed moderate its stance against inflation in light of today's numbers >> today's numbers actually met our expectations because the cost of energy and the cost of agriculturals was exceptionally high this past month and probably has peaked. we don't expect inflation, by the way, to come down until 6.5% by the end of this year. so the only reason for the fed

to actually pause is because a lot of the increases of interest rates have already been priced into the market and right now we see the effect that that's having on the consumer and it's having on home prices and new mortgage applications and if you think about it it's having a positive impact on the supply and demand of all other goods and services, right? when the you think about it wer seeing stores that are full of inventory and we're seeing target report that they have too much inventory and we're seeing consumer demand come down. so the question is can the fed be patient to allow inflation to naturally subside or will they crush consumer demand as a way to get to the same end. >> as you say there, consumer demand coming down modestly as evidenced by what target said earlier this week and other things like that doesn't that sort of tell you that a recession is -- is higher than normal probability? >> we also agree that it is a higher than normal probability the question is whether or not

the fed thinks that that is actually necessary to deal with this inflation the critical thing to look at whether there will be recession or not is actually whether or not we will see negative growth, actual destruction of job employment because right now, consumer demand leads employment we expect employment to naturally, the heated employment to match rnaturally come down a 100 to 150 basis points, we think that that can be tolerated because it's priced into the market now if the fed says we have to attack inflation and it's way too high and the only way to do that is through a blunt instrument taking interest rates and taking liquidity out of the bond market and if it chooses to do that that is a recession and we consider the middle of the road scenario to be a 50% probability, and that is a high level of risk that there could be a recession >> so -- i'm sorry to interrupt, please, finish your thought. >> the other thing i wanted to

mention that the idea that a recession would be deep and long is something that everyone assumes. it definitely will have an impact on stock prices for a short term, but the fact of the matter is from a consumer standpoint you may see a relatively narrow dip in the markets. >> give me a quick 45 seconds, if i buy these hypothesis of yours, what i should do with my capital right now? >> this will be a little bit contradictory. first, bonds are back meaning we are at or near peak interest rates, literally today and we hit the lows that we hit a few weeks ago today, and if you think about all of what we just talked about, the economy slowing and the fed potentially increasing rates too much then bonds will be a great place to be because they doubled in yield a year ago and they doubled in yield this year and every single time that we've seen since 1963 until now, both stocks and bonds go down in value at the same time and that's only happened

five times we have seen bonds appreciate and actually do very well and the reason why people have to get invested in bonds, in our opinion is that their cash can lose in our scenario 10% of its value over the next year second of all, there are parts of the market that are undervalued and parts and growth and profitability will continual of the way through whatever happens. for example, areas like pharmaceuticals and those that need to be put into portfolios now as well. >> thank you very much, for your insights have a good weekend. coming up, we have more on the market sell-off and the sectors getting hit the most by rising inflation and first, check out the media names that are actually leading the declines in the s&p, warner brothers discovery down 14% right now, i should say, down 4.4%, and walt disney and comcast lower on the day we'll be right back.

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welcome back to "power lunch," everybody. marks are selling off as inflation hits a fresh 40-year high the s&p 500 down 2.3% back to 3925 while stocks are falling bond yields are rising with the 10.15% and the two-year soaring to the highest levels since 2008 housing stocks have been hit hard by inflation and builders and landlords taking a hit today. diana olick has more and she joins us from mooresville, north carolina, just outside charlotte this afternoon diana? >> as if the homebuilders haven't been hit hard already, most are down 30% year to date and take a look at the home building etf and this includes the big builders as well as home

imp improvement, and sherwin-williams all down 2% as are the big names like lennar, dr horton and pulte. it's the broader market, but as you said, it is also rising mortgage rates and they took a dip in may and started rising again in june and today it really took5.85%, more than 20 s point rise today on the 30-year fixed. that according to mortgage news daily. a year ago it was around 3%. look at the big public landlords. american homes for rent and invitation homes are also getting hammered even though you would think they were the opposite play. i'm here at a brand new community, a public landlord now building its own homes more than 5,000 in 16 markets over the last five years as demand and rents soar. none of that appears to be helping the stock. >> as interest rates rise, real estate is an interest rate sensitive industry and the value of real estate is inverse to the interest rates.

so all of real estate is down. we have actually performed better in the last six weeks than the real estate industry as a whole. >> even as inflation is hitting the housing market, investors are still pouring into single family rentals about $50 billion this year alone and rents for these single family homes are up 13% year over year. tyler. >> wow diana, thank you very much diana olick reporting from north carolina. coming up, today's three-stock lunch. trading some of the biggest laggards today and this week, including former wall street darlings like netflix and docusign there you see them that'som cing up next on three-stock lunch.

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>> of those three names, netflix is the most defensible at $12 a share, earnings in '23 and i believe that we've had a chance to reaffirm some of those eps targets, it's a 15, 16 multiple. i think the goldman downgrade is it's a show me stock with few near term catalysts. i would go back to even when netflix was a stock that people put a much higher multiple on, people didn't feel their subgrowth had to be linear the fact that they're going to try to remedy some of the password dynamics, that was a sign of weakness but not something you should penalize the stock for. i think we have priced a lot of bad news in here. >> let's go to the other two one is docusign, it's down 72% over the past year, and the other is royal caribbean which just can't catch a break. >> no.

look, ty, on royal caribbean, i would be more neutral. i actually think that some of these reopening stocks, and i particularly like airlines but if you listen to their updates in early may, march and april were essentially getting them back to pre-2019 covid levels you saw on the revenue side they started to see some inflection in free cash flow so stop of the burn right now it's a story we're concerned about dilution of equities. >> so you wouldn't be a buyer of docusign >> i think docusign for a company that today beat on revenues and missed on eps that used to work. that's everything that's failing right now. they still need to show profitability. i think that a company that is going to be here tomorrow, a company whose multiple could go lower. >> well said that is an unforgiving market for that tim, we appreciate it. thank you, sir >> okay. >> our tim seymour joining us today on a very tough day for the market. >> and you look through a lot of

the stocks that we reference and see these enormous make you gasp declines over the past, 72% on docusign, 62% on netflix a heck of a lot of them are not just in bear market territory, but crush territory. >> you want to talk about gas, rates, inflation thanks for watching "power lunch. >> "closing bell" right now. see you next week. thank you, tyler and kelly stocks falling hard as inflation hits a four-decade high. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand in the market we are down more than 600 points in the dow at the lows we were down 853 we are off that point but it is a sea of red on wall street. what's working right now some of the consumer stap le names.