above $5 a gallon. one analyst sees a few things on the horizon that could push prices higher and that's all ahead on "power lunch" which begins right now hir, everyb, everybody. welcome to "power lunch. if you've been following us, you know that. the dow is down 600 points right now, and that is on top of an 880-point loss on friday and a slide thursday 48 hours from now, we will get the fed's decision right at this hour the big concern is a 50 basis point or half percentage point hike and whether that's nufr to fight back blunt inflation, but three-quarters of a point might panic the market and we'll pick into the fed's dilemma and all of the reasons for this sell-off. >> and many there are, tyler, thank you. tyler mentioned the dow's big

loss and it's the best performing major average and it's down 2.5% and down 20% from its highs and bear market territory. the nasdaq down 3.5% lower by 30% this year and bond yields jumping. the 0.2 spread briefly inverting for the first time since april and the ten-year yield pushing 335. in the meantime, crypto is getting crushed with crypto below 23,000 and that's a level not seen in a couple of years. ether losing $200 billion worth of market cap wiped out. let's go to bob pisani with more on this market sell-off, bob >> we are at that 20% level which we decided would constitute a bear market if you're counting we'd have to close today, at 3837 is where he'd have to close to make that official 20% down would be 3837

s you see we're already very close it that. 3793 right now i want to show you two sectors that are being especially hard hit today. one is the travel and leisure sector where we're seeing a lot of new lows today like norwegian cruise lines and mgm and american cruise lines and it is up 9%, 10% and they've been down three or four days and the other group is energy stocks and we have a double whammy on concerns about demand destruction from inflation and at the same time, we have lockdowns in china continuing and beijing especially now experiencing some issues and that's a very significant part of the global economy. obviously, china there, and you see sectors and the exploration of product issues and you have schlumberger and halliburton, all down noticeably, and these are off of their lows from earlier today. down new lows and we've got an awful lot of them and 400 on the new york stock exchange, but there you see microsoft down and

intel particularly dropped and intel was $44 a few days ago and now look at that $34 and we're talking about 15% or so declines in the last six, serve trading sessions and goldman sachs, another one and that was 320, goldman. just five days ago i did a story on that. so you see another 15 -- 12 or 13% decline. here's something remackable that you'll see at the open today, 30 to 1 declining in advancing stocks and you can go many, many years without seeing that advanced decline in balance today. even now, only about 3% of the s&p 500 is in the green. that's 13, 14, 15 stocks that are up mcdonald's, smucker, obviously coca-cola and the travelers is a broad line you can see s&p yoeths down 3%

the s&p value down 3%. to be small cap down about 3 pes. s&p growth value down about 3% this is a graud takedown of the markets. >> all right, robert bob pisani investors are eagerly awaiting the fed's next rate hike on friday and there's a two to one chance that the bank will raise interest rates by half a percentage point, but the potential for a three-quarter move is rising and our next guest ceassees the potential foa three-quarter-point cut mark is next month ann barry founder of thread needle ventures. let's be explicit. do you think the possibility of a three-quarter-point cut hike begins wednesday or is it six weeks later? >> tyler, i think it's six weeks later. i think if the fed goes this

week when the last press conference is adjusted that wouldn't be reactionary and certainly in light of the inflation data which is being uninspiring, i do think there will be pressure the fed to make that 75 basis point hike six weeks from now >> six weeks from now. not necessarily day after tomorrow let's go back. i don't know if you heard howard schultz of starbucks at the top of the broadcast, but basically, he said there are things on the collision course and one is the rising parts of gasoline in many parts it's $5 on average and in many parts of the country it's about six, pressing on seven. number two, you will certainly have higher interest rates and higher borrowing costs is there any way, then, if those conditions persist and overall inflation takes a longer time to tame than we think that we avoid a consumer recession in this country? >> there are, i think, different ways at unpacking what a

consumer-led recession might mean, tyler. unfortunately, there are certain pockets of demographics who are going to feel this dynamic inflation and the lower income demographic in the united states i think are in for a very difficult time, unfortunately. there are other pockets of the consumer base who have still got strong balance sheets and benefited from rising asset prices over this covid cycle who will be able to weather the storm. so i'm very concerned about the low-income demographic and less concerned than those in the higher income ranges >> i think you're exactly right on that, not that it matters what i think here, but that leads you to wal martz because of its ability to lead everyone to most price points >> if you go back to look at history, these everyday low price retailers have managed to

do very well during recessions and downtrends walmart, given its scale and capability is positioned to weather the storm better than others tyler, it is more interesting for other reasons, though. walmart has hiding inside it increasingly during plain sight enormous capability and analyzing the shopping habits of over 100 million americans every week who are interacting with the walmart platform, and so we're seeing the move aggressively into financial services innovation and doing more in health care. so to me, this is an interesting combination of dividends that are available and stability in having the demographics, and also the investment has consistently made. >> on the credit side, ann, there have been poor returns and so many deep sell-offs lately that where do you see value or is it the same kind of thing in the stock market right now people might see value, but not really want to get in front of

it >> kelly, credit is a very interesting one because i credit back to the last cycle in 2008 and i was helping to deploy, not immediately in the thick of the crisis, but in that 210 period where the credit market had somewhat stabilized and there was caution around the capital a lot of private lenders made a lot of money putting capital to work behind the high-quality businesses and i look at that with the dynamic i have now and i look at the high yield or other credit etfs like, aaa, for example. i do think while we're holding cash and i want to make sure there's some yield on it and it could be an interesting place to play while it is right now >> specifically, which one is the high yields of the group and the safest area? >> i'm sorry the highest grade, not the high of the yield >> that's exactly right.

i look at aaa which as the ticker suggests it is focused by the credit asset managers and that has declined off etf and looking up at three-ish percent yield if not higher if the fed moves geographically and those are the short positions i would be looking at right now. >> and ann, thanks again for your time for joining us. >> thank you and more than the% of the s&p is 10% off their highs and the same is true out of the dow stocks and only four names of the nasdaq 100 are not in a correction right now in all this wreckage where are the buys let's bring in sarat sethi and he is a cnbc contributor do you like investing at times like now it's what value guys are supposed to do, right? >> it is, but it's a combination.

i mean, it's not a great feeling to see portfolios or the market down 20% at this time and in the last three days we're down 7%. so the question now is when this is stopping and we all know timing is impossible to do, but we have a couple of key things going on this week and it's hard to step into a marked down 20% with no short term catalyst on the side, but having said that, there are some stocks that if people have cash and they have an outlook three to five years out, i'm not saying six months because we don't know how things go and there are a couple of stocks that we like in this area and one is bristol-myerss and bristol trades at ten times earnings and it doesn't correlate with the economic cycle of the new world they have eight new products and it's got a 3% dividend wreeld and a balance sheet and it's something farm side of an equity

kicker >> let's talk about your views about what the fed may or may not do there was speculation in the last ten days, let's say, that inflation may be peaking i didn't see much in friday's report that confirmed that and the markets certainly seemed toon responding as though there's not much good news to be found in any of the inflation reports. so what does the fed do? >> you're absolutely right i mean, friday's report showed that inflation was not slowing, and a lot of us including me were looking for some signs that the second was going to be slower i think the fed's got to step up now. i think the data is showing and the fed is data driven, 50 at least and they might even go higher and until they bring down inflation and part of that is brin bringing down demand and it's with oil prices the way they are and consumer sentiment the way it is which is one of the lowest that we've had in a long period and they had a strong fed and

the fed is not going to be there to save the market and they're not in the near-term if you are a long term investors there will be stocks trading below fair value it's so much liquidity put to the system and fair value is hard to see, but with the rates going up, especially the short term rates on. >> ooum not jging that paul kohler have 2.0 or whatever, but when you have interest rates pri summably where they are right now and the ten year is where it is and it's 320 ore -- >> 335 you have that, rising gas prices and rising prices for food, is there any way we avoid a recession? >> just because we have a recession, tyler does not mean that the stock market goes into a 30%, 40% spiral. i think you can definitely get a

slowdown and that's what the fed is trying to do. avoid the stagflation slowdown, and with a recession, remember the market looks at 12 to 18 months in 2020, the market was at its worse. in 2008, the market started responding back in 2009 and in the big of the part of the recession. so we can't be in this recession which is probably not where we'll be >> it's not necessarily bad for the market >> i think people need to remember that and hammer it home and the recession may be bad for the economy and it may be people at the lorer end of the income, in fact, it might suggest, as the market looks ahead, a turn >> i would add to that, when the market started coming down things earn really good in the economy. so we can be at a stage in the economy when you are in a recession and the market can

turn around. it can look for catalysts going forward. i don't know what they are we never know what they are, until 18 to 24 months afterwards, but at this point it does not make sense to sell your stocks unless you just can't sleep at night, but if you are within your allocation and meeting your objectives and have cash on the side and you'll get opportunities like days like today and i'll be down for a few more weeks where you will have great companies that will be on fireside sales that you'd be happy to >> sarat, thank you. always good to see you sarat sethi. we appreciate it >> thank you >> coming up, every sector, every single sector lower today. 97% of the s&p 500 stocks are down at one point, all of them were down except for coke, but consumer discretionary is getting hit the hardest and some of the higher-end retail names like pvh, tapestry, ralph l lauren

is there even more pain ahead for these names? >> the yield at the high since 2011 the market is expecting the fed now to hike by three-quarters of a point. is that what's needed to fight inflation? all that and more coming up. stay with us ” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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lunch," everybody. they're tracking the retail down 3% >> the xrt etf are down 10% from their highs and every name, every single one in the rth is down more than 10% from its highs. our next guest has been cautious on retail for a while, and he sees more pain ahead managing director and senior retail analyst of wells fargo securities hike, welcome. is demand slowing so sufficiently and so dramatically that virtually all retailers are going to feel the pinch? >> tyler, yeah so demand is slowing i wouldn't say it's anything super material, but the problem is that demand is slowing at a time when companies started to get a little more confident with what they were ordering and it's supply chain bottlenecks trying to get ahead of the issues and supply chain

so now what's ended up happening in our view is the inventory is really starting to build at a time when the demand is slowing. so it's less about just the revenue and it's more about what those margins are going to do when the revenue starts to come in worse and you're left with a lot more inventory with 500, 600, basis pointses. >> who is best positioned in terms of managing that inventory? >> kelly, it's a good question i would say when we look at the group in totality i would say the global brands are in a better position to manage through this i think the domestic soft lines, retailers are in the tough spot. on the apparel side specifically, we'ral read seeing the markdown accelerate and i think the lower end you go not really surprisingly, you're seeing the much more pressure there. so think about names like old navy, burlington, ross stores. so i just think that it's the

domino effect and apparel is a forgotten care core and we've forgotten about that the last two years because of how clean the space has been and this will have a knock-on effect and margins will get worse as i move through the year >> as i'm hearing you right, you would lean away from broad line retailers and maybe go to the brand owners like tapestry and capri holdings >> absolutely. brands over boxes right now. >> brands over boxes >> brands over boxes >> love that so within that i would say getting away from apparel, and i think apparel's tough and they're two of the favorite ideas and tapestry and they're accessible luxury and handbag accessory brands michael kors, versace, coach they have bigger margins and more global and less competitive space and the pricing dynamics will be much easier to contend with, we believe >> so you mentioned your top

picks, tapestry, capri, bath and bodyworks, but what happens if the consumer environment remains wobbly >> then this continues i mean, remember, we cover consumer discretionary so if we do go into a recession and things get worse, i don't think any of these stocks will be particularly great just because of the discretionary nature you are, but the issue that we see in terms of the stocks were too hard typical negative provision cycles during recessions last about 12 to 15 months. estimates are coming down now in our space which is great, but it's been one or two months. revenue estimates have come down 1% just for context back in '08, revenue estimates get down 15%, and i think numbers will keep coming down and i know valuations are cheap, but i don't think those multiples truly capture what the power could end up being. >> ike, thanks for your time today. we'll leave it there

we appreciate it >> ike borshow >> brands. >> good catch phrase >> the fed could have market-altering implications and maybe they're already altering markets. we'll dig into that. up next, tesla down along with the other ev makers and the whole market today names in this group are down as much as 70% this year. we'll have more on these moves next as we go to break, take a look at the sector following the most from its highs and it's consumer d discretionary, and some down 40%. travel and entertainment, whoa is right carnival down 50% year to date and it's only the first time that's happened since the pandemic we're back after this. only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership.

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- retire better. ♪ ♪ all right. welcome back to "power lunch," everybody. take a check at the ev names for today. huge declines across the board the vehicle makers like tesla down 6%. roughly triple the dow rivian down 6%, again, roughly triple the dow between 6% and 10%.

and look at nio, take the "i" out and it's no, down 11%. the white house is impacting this group plus the ev start-up last mile solutions, they've come to the last mile filing for bankruptcy, chapter 7, planning to liquidate, one year after going public via a spac. let's go to kristina partsinevelos for cnbc >> let's move on to today's january 6th hearing. bill barr speaking with the panel investigators were played. he told how he repeatedly told president trump that his claims of voter fraud were ridiculous listen in. >> i was somewhat demoralized, i thought boy, if he really believes this stuff he's lost contact with -- he's become detached of reality if he really

believes this stuff. on the other hand, when i went into this and would, you know, tell him how crazy some of these allegations were, was there never -- there was never an indication of interest in what the actual facts were. >> no children were hurt today when police fatally shot a man with a gun at a summer sports camp outside dallas. right now authorities aren't saying about who the man was or why he was there actor kevin spacey is scheduled to appear in a london courtroom last week after being formally charged against sexual offenses against three men between 2008 and 2013. the $5 dilemma with the national average of gas at that price, when will consumer stop spending

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> all right, folks we have 90 minutes left in the trading day. the dow up 720 points. stocks, bonds, commodities and looking at $5 gallon gas as the national average the dow had been down about 900, 899, to be precise at the low of the day. big tech down today and the one-week losses for some of these names are huge look at apple down about 9% on the week amazon down about 16%. meta down about 14%. every area of travel getting hit hard the booking companies, the hotels, the airlines especially and the cruisers look at poor royal it can't catch a break down 9% there, but beooking holdings don 6 and the few stocks that are

are safety names, generally food and insurance. food, coca-cola, mcdonald's doing pretty well and progressive. have you seen those commercials? have you seen any of these progressive commercials? turning now to the bond market a big jump in the ten-year yield today, getting as high as 3.35%. that is the highest since 2011 and there you see it, right there is 3.35% the two-year jumping even more briefly inverting. the yield on the two-year was higher than the yield on the ten-year that'si that's usually a good sign, but it was brief it was down 2% today even as inflation weighs on the market there you see it 2.5% at 20 an ounce. the problem for both gold, and that pulls money into the dollar and out of the gold market one thing that is moving higher

today, that would be oil and it's bringing gas prices with us. pipa stephens has those details for us hi, pippa. >> not good news for consumers with gas prices at record highs. starting with oil, it did spend the morning in negative territory, before staging around noon although just dipping back into negative territory and the choppy trade is thanks to covid cases in beijing rising against global supplies remaining tight. wto is flat here right around 120 that follows seven straight positive weeks brent crude also flat around 122. now looking at energy stocks they're not excaping today's broad-based selling. the sector is one of the worst performers down 4% eog, halliburton and apa among the day's biggest losers and we did hit a milestone for gas prices offer the weekend with the national average topping their 5 per gallon for the first

time ever according to aaa prices are up 58 cents in the last month it does very widely lead by state. georgia has the average of $4.48 after it was suspended california, tyler has the highest at $6.43 back to you. >> pippa, thank you very much. for more on oil prices let's bring in devon guarna. good to have you with us >> thank you can you take us through some of the fundamentals of the oil and gazzola lean markets that you're watching that add up to the prices we are seeing >> sure. well, right now refineries are in the united states are operating at a very high rate and inventories are still very low. so right now we have the supply and demand in balance which has

gotten us to the levels of 5.01 right now with the district of columbia averaging over $5, and it's been pretty ugly from the consumer standpoint. >> it's not as if another refinery is going to come online here in the next few weeks to bail us out. you've got russian oil leaving the international markets or at least partly so. as i understand it, you've also got a situation where refiners are incentivized by higher prices to concentrate on making other distillates besides gasoline in other words, diesel and jet fuel, right? because they have higher margins. >> 100% correct, and right now your yield should be tilted more toward -- you can't go 100% diesel and 0% gasoline, but right now the market is materieling refiners, hey, we need more diesel and quite frankly, i tend to agree with that because right now diesel

supplies and diesel is even tighter and it's pretty scary as far as diesel is concerned so what do you expect over the next, say, three to six months we don't know what the hurricane season might bring and whether it might impact or shut down some rigs or some refineries we do don't know whether demand destruction is going to take place. world tr what's your best guess where we will sit toward the fall and winter >> it's hard to imagine hurricane season because it just started and that's last thing we need right now no matter, whenever, but over the next several months i think we are starting to see some of the demand destruction and some of the data we get is starting to show a little bit of fading in gasoline same-store sales of gasoline we're also hearing anecdotal and this goes back about a month or two ago when premium gasoline reached $5 a gallon. those drivers that strictly used

premium were downgrading to regular at $5. i think we'll start to see some behavioral changes at $5, as well we might level off here and yes, crude oils did fall and they dropped 23 cents and we might see prices level off temporarily, but july, august, all bets are off. >> that's great news in the near-term and then we'll see what happens, denton what should we watch for which are wreaking havoc on some of the airline stocks and other exposed parts of the market? >> you're absolutely right when it comes to diesel in particular, everything you buy in the grocery store in the big box retailers, how does it get there? it gets there by truck and they're passed on to the consumers and at some point consumers will say enough is enough, and it will cut back on my buying and spending, et cetera we'll see the shock when it

comes to airline tickets if we want to go maybe to europe and the dollar is very strong right now and we have a good exchange right, but it will be beaten up by a plane ticket and disney world, for example >> you're living my life here, denton, because i'm thinking about going to europe this summer and the fares are crazy, and i have a big old, honking car that says put premium in me. >> oh, no! >> i say, no, i'm going to go to plus or regular -- that's it denton cinquegrana. >> my and melonhead friends have a trip to scotland next year and hopefully prices come down by then i think they will not necessarily in the united states so much, but globally we'll see a new refinery come online in africa before the end

of the year and in the middle east and asia between now and 2025 which will help bring more supply to the market it's not going to happen tomorrow, obviously, but again, it's coming in 2022 may end up being a gap here >> enjoy scotland. it's a great place to go >> denton cinquegrana. >> what do you say if it's premium. >> i think it is argument is it's not as good for the engine and you get better mileage if you use the higher octane gasoline i may be as my mother used to say, cutting off my nose. >> i think it will be an experiment >> coming up, we do have more on the market sell-off with the stocks down, bond yields soaring and what does it all mean for housing? wait until you see the mortgage rates and we're celebrating pride month. here is golden state warriors former president rick weltz.

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welcome back, everybody. mortgage rates are soaring in half a point in just the last couple of days here's the 30-year fixed mortgage the white number top left of your screen 6.13% is the current rate today let's just let that sink in for a bit. it has basically doubled just this year. our next guest says these higher mortgage rates will cool the housing market this spring, but demand will pick up in the fall. joining me is danielle hail, chief economist. good to see you again. why do you expect demand to pick

up in the fall >> it will take some time for consumers to get used to these higher rates and as the fed starts to make headway against inflation they can top out on rate increases i do expect we'll see mortgage rates stabilize and that gives mortgage rates the opportunities to adapt that will give consumers options like they haven't seen over the last couple of years, and i think you'll see home sales pick up a bit as a result >> you have a lot of good high frequency daily, weekly data and what are you seeing in turnover times and what's happening with the spike that we're seeing in rates? >> so our weekly data shows we're starting to see more homes available for sale and there are two reasons for that one is we've got more homeowners coming on to the market and putting the homes up for sale more so than this time last year the other component is we've seen the sales pace slow down a bit and so buyers are being

choosier and we haven't seen homes sit on the market for longer because a lot of what's coming up is brand new because we have the market and buyers do seem to be choosier. what's most interesting to me is even though we have more homes on the market, we haven't seen prices slow down yet and they're still growing at a double-digit pace in other data, we have seen sales prices slow down a bit and still growing at a double digit pace, we have to have more homes for sale in a longer period of time before we see the impact. >> we have more homes coming on the market for sale, why do you think that is? is it because the people putting those houses on the market are aware that house prices are peaking if they haven't already peaked and they want to get the top tick why are they coming out now? >> i don't know if people think that home prices have actually peaked, but they do know home prices are high and it's a very good time for sellers and so

some of them are trying to take advantage of that market and remember the vast majority of sellers are also buyers. >> yes even if they get top dollar, they're strong contend with the top dollar on the next home purchase, so i don't think it necessarily is that many people to get off the fence >> that's what i want to ask you. we expect more houses to come on the market through the summer and into the fall and i question that because i am a homeowner. if i'm a homeowner, and i want to sell i'm going to be -- i'm going to sell at a high price, but i'm going to have to go buy at a high price and at a much higher interest rate so the disincentive for me to put my house on the market has grown a lot in the last six months >> yeah. if you still have a mortgage then the mortgage rate is a consideration. remember up to a third of homeowners don't own their home with a mortgage and so for those

homeowners the additional homes for sale create other options, and you've also got to remember, too, homeowners and workers alike are enjoying more flexibility than ever before and so if you sell in one market that's ultra competitive where you're relocating to a more affordable market that can still make sense and you can end up paying less for your market even though you're paying top dollar in essence >> some strategies to think about. >> yeah. it makes sense, if i move from northern new jersey and i move to charlotte and i move to atlanta where a more moderately priced market my money would go farther and certainly my property taxes would be lower. danielle, appreciate it. >> more on the volatility of the market ahead of the fed's decision what powell's next move might be and how you should navigate the markets and find opportunity "power lunch" is back with the dow down about 2%.

it doesn't feel as bad as it did rlr today, but it still hurts. as an independent financial advisor, i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com at adp, we use data-driven insights to design hr solutions to help you engage and retain top performers today, so you can have more success tomorrow.

♪ one thing leads to another, yeah, yeah ♪

we've got stocks taking a leg lower. the s&p into bear market

territory after these declines the past couple of days, including today. investors anxiously awaiting to see what the fed will do this week last month dan greenhaus told us the fed should go three-quarters of a point higher on interest rates. he joins us now. dan, how are you good to see you. >> good to see you, sir. >> are you feeling like your prediction of a month ago is coming true? >> well, i wouldn't say it was a prediction so much as it was a discussion i was having at the time about whether the fed should have taken 75 basis points off the table my point at the time was i don't think they should have taken it off the table on the idea that perhaps the next inflation report might be hotter than expected now indeed that's come to pass and indeed i do think they should raise 75 basis points at the next meeting but i would stop short of

calling it a prediction, but i'll take it. >> i remember the moment well, because the question came from our own steve liesman about 75 basis points in retrospect was that a mistake on powell's part to fundamentally take it off the table? and now he may choose to eat his words. >> yeah, i do think it's a mistake. i will say i think the fed is making a number of mistakes here and has made a number of mistakes so in that sense it's completely in character. clearly i don't think they should have taken it off the table. and i do think they should raise rates 75 basis -- >> tell us what the mistakes are that they are making or they have made. obviously they were slow to awaken to the persistence of inflation, so we know that. >> yeah, but i think they can be excused because a lot of people early on were on the transitory train. conceptually it made sense and mathematically it made sense as

well i think they were exceedingly show to recognize the shift in the underlying economy, the degree to which fiscal stimulus was being supplied and the degree to which they should have retracted monetary policy in response the result is the housing market we currently find ourselves, i find it one of the most egregious mistakes they have made in their entire history that up until two or three months ago they were still buying mortgage-backed securities i know there is some reluctance inside the fed to articulate a difference between treasuries and mortgages for fear of being seen as supplying support to the housing market specifically so they tending to treat them the same but the rest of us on earth don't view it that way the idea that they're buying mortgages february and march is an atrocious decision at the time, let alone in retrospect. >> a lot of this is about what you think they might do or didn't do. so what do you think they should

do now >> for starters they have to play catchup and that's a view articulated in a number of quarters larry summers and others, and i've been of that view for some time now i also do want to say that i have some sympathy for the fed in the sense that there's only so much they can do here sure there's a demand problem. problem may not be the right word sure, there is excessive demand and they can do their part to curb it. but the energy part of the story, as we know gasoline is $5 a gallon well over $6 in certain parts -- over 6 in california where a large portion of the driving gets done. but i think we tendi to put too much weight on the core cpi, which excludes food and energy, the idea being energy doesn't have an impact on that core number, and that's ridiculous. >> it is ridiculous. >> please, tyler, go. >> if you take out the two things that are costing me the

most, it's like if i take out my strikeouts, i'm a much better ballplayer. >> that's right. what i would also add is the idea that somehow energy is not included in that core cpi, for instance you have airlines and airline fares which are up 45% year over year >> talk to any consumer like me, dan. they are way up there. dan, we have to leave it there for time reasons we appreciate your insights today. dan greenhaus. >> thank you, sir. >> 48 hours, we find out what they do. coming up, it's not just crypto collapsing today, it's 'lysm.ole ecoste wel break down the biggest movers, right after this

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lemony, lemons. ♪ and never wonder if you got a good deal. because you did. ♪ all right, folks, welcome back to "power lunch." we've got about an hour left in what has been a miserable day for the markets. but those losses, 2, 3% for the major averages are nothing kp compared to what's happening in crypto eater down 16% kate rooney is following this. tell us what happened in this krimt crypto crush. >> a lot going on right now. as for bitcoin prices, analysts say that fed policy is the main drag on the entire asset class roughly $200 billion was wiped off of crypto's market cap over the weekend. the total value of the crypto

market fell below a trillion dollars and there are some industry-specific headlines contributing to that one of the biggest crypto lenders, celsius, is freezing customer withdrawals and transfers. there was speculation it was having solvency issues the firm had $11.8 billion in deposits and 2 million customers as of mid-may. most of those are retail investors brought in by an 18% yield that this company offers for just depositing your crypto and holding it there there was not a lot of transparency on the back end on how thing offer that they do lend customer money out to hedge funds this morning one of the world's largest exchanges pausing bitcoin withdrawals. that has since been fixed but some questions swirling around why that happened in the first place and we've seen more layoffs in crypto as a result of this crypto crash.

all of this is hitting the crypto-related stocks. coinbase down double digits. microstrategy down 25% at this point. back to you guys. >> kate, thank you very much >> kind of hard to end it on a bright note at this point. >> maybe if celsius converted to fahrenheit it wouldn't be as bad. thanks for watching "power lunch" everybody >> we're off the lows. "closing bell" starts right now. >> thank you, kelly and tyler. off the lows but stocks are getting wrecked on this crucial fed week the most important hour of trading starts now welcome to "closing bell." i'm sara eisen take a look at where we stand. it's been brutal all session long we're down 750 s&p down 3.3%. the nasdaq getting pummeled, down 4%. all of mega cap technology stocks are lower apple, amazon, tesla, nvidia