not to succeed and when the next bull market comes along they are in a position to >> we'll leave it there. mal mayly thank you very much. and happy father's day. >> and to eric as well. >> thank you how are you celebrating? >> my wife has a secret trip planned. a surprise. >> a trip? >> a driving trip. i'll tell you on tuesday. >> "closing bell" starts right now. >> stocks struggling for direction as a brutal week comes to an end. though the nasdaq is seeing nice gains today. the most important of the trading day starts right now welcome to "closing bell" and i'm melissa lee in for sara eisen. we're higher across the board. tule leading the way with the nasdaq looking at a 1.8% gain so far in the session the s&p 500 up by .7% in terms of sectors that three week low in crude is taking the energy and the s&p lower today and we're seeing some outperformance in the big

cap teches with a notable exception of apple take a look at some of the biggest losers of the week on the s&p 500. which itself is looking at a 5% loss for the week. so pretty remarkable down side moves. pattera down 21.5% for the week followed by eog and schlumberger and hallie burton. today chris baron said the market pressure will not be over until quality stocks fall even harder he'll break down the level on apple, we just mentioned it as an underperformer today, it is far below where it is sitting today. let's get straight to the markets. as the s&p 500 paces for the worst week following the big fed rate hike. joining us is mohamed el aran. it is great to get your take on this. >> thank you, melissa. >> what is your message from the markets. >> it is a week in which the

market got worried first about inflation and then about growth. and we've ended up being whipsawed in the fixed income market but in the equity market, and that is what you would expect >> in terms of the moves that we've seen, we've seen some pretty extraordinary moves not just in the equity side but in fixed income and also in the cred side. we saw junk bonds go above 500 basis points for the first time since 2000 how do you determine the stressors the market could be facing >> i think we've realized that inflation is such a problem that this fed is going to tighten significantly. we've already realized that other central banks are going to join in. so we are pricing in a significant tightening of financial conditions globally. that was very clear this week. and then we went to the next step which makes sense, which is what about the economy

and now not only did we have interest and inflation but we have credit risk being priced in as well and that is why you saw what you saw in the bond market. especially the most vulnerable segment of the corporate bond market >> in terms of junk and in terms of some of the zombie companies out there, there is a whole coterie of companies that got financed at free money, free cost of capital. should we be concerned about that the chickens coming home to roost. do you think that is systemic or are things different this time around. >> i don't think it is a systemic i think we'll see a significant uptick in the default rate i do think we'll discover that all things were done at zero interest rate and that do not make sense and they will not make sense i don't think that is systemic what is systemic, however, is that we get a global slowdown

that produced further complication on this inflation growth tug-of-war. so i am worried about the global outlook more so than a week ago. but i don't think we have a systemic issue within the financial sector like we did in previous downturns. >> just to home in on that motion, about the further complications, because everybody around the world is tightening at this point practically except for china i guess. does that mean that we're more prone to a deeper recession or that we're more prone to a stagflation environment? >> so we're certainly prone to a baseline and the risk of a recession is going up. melissa, there is one issue that week which i think was the most significant issue that happened and it is not the fed. it is the swiss national bank. the fact that they hiked by 50 basis points has a ton of

consequence and what it basically tells you is that there are very few central banks that want to see that currency depreciate yes, japan, but very few away from that. and what that tells you is that this tightening is going to feed o onto it self because central banks will have inflation and they'll try to protect the currency by hiking and that means we'll get a bigger global hiking cycle than we would have other wise. >> so it is a race to defend currencies it is a race for rates to go hire so in terms of what we need to see for the we canty markets here there are some line of thinking that we do need to see p.e.'s come down further and earnings estimates revise low what makes you think that wheeze priced in these concerns. >> two things. i think the p.e. is important because they need to reflect not

just interest rate but credit risk two, i need to have more confidence that we're not going to get pockets of liquidity. we're starting to see little pockets of illiquidity but it is important that they remain small so those are the two things that we need to see before i would feel comfortable putting a lot of money back into the market place. even though i must tell you, there are some attractive single name valuations. >> and i'm just curious, mohamed, in terms of it is hard to wrap your head around that when you see int edger moves in some of the big cap stocks that don't move in that way and you're trying to grapple with what is a historic p.e if a slap a 16.5 p.e., that is an historic average for the s&p 500 over the past ten years. is the environment average >> no.

because we're transition from a very new liquidity regime to a final liquidity regime so we don't have to overshoot historical levels before we stabilize. >> mohamed, thank you so much for your time. great to speak with you. >> thank you for having me shares of apple mean time down 4% on the week and 25% on the year but one chart expert thinks there is more room to the downside we'll join us next to explain why that matters to the entire market you're watching "closing bell" on cnbc. what do you think healthier looks like? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot like...you. cvs. healthier happens together. lemons. lemons, lemons, lemons. look how nice they are.

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let's check out today's stealth mover. it is utz, a strong position in the salty snack category mmm. saying they could benefit from faster growth and better pricing power. goldman sachs noting the recent pull back in valuation is a compelling entry point the stock is up more than 6% right now. stocks in the green today recovering after yesterday's massive sell-off joining us now is chrisverron so we bounced and what do you make of the charts right now for the s&p? >> hey, melissa. well i think number one, we ought to distinguish between an oversold bounce and a major bear market bottom. i think they're two different things it is not difficult to make a case that we're oversold here and you could rally into late june and july. i'm not opposed to that. but in terms of the conditions of the major bear market low, i just don't think we could check

enough boxes i mean capitulation is defined by swellings of volume haven't seen it. it is defined by big spikes in pick call ratios haven't had those. it is defined by vix above 45, 50, haven't seen that. so i think we need to distinguish here between bounce and major bottom i don't think this is the latter and i also would just add, remember, upwards of 60% of the russell 1000 is back to where it was pre-covid. if s&p went back to where it was pre-covid and followed that crypt, you're talking 34, 3500 s&p, that is been our target i don't think that is a stretch given what the conditions look like under the surface here. >> and then the past 3500 on the s&p 500, chris, you say apple has a long way lower to go >> yeah, i think these declines or these capitulation lows are

often characterized by the best stock of the cycle falling last and hurting people and that is been apple this entire cycle and i don't think we're done there. apple is not at major support yet. major support we've called apple is at par. apple at $100. that is the long-term two week moving average and that is supporting many times over the course of this ten or 12-year cycle. i think apple to 100 and microsoft to 200 and tesla to 450. those are some of the levels that you want to kind of keep in mind of okay, where does this index ultimately bottom with those stocks in those areas. >> did you say tesla to 450, microsoft to what level? >> microsoft to 200. is kind of long-term support there. >> 200. >> you're still talking about between apple and microsoft, that is down 15 to 20 from here on both of those names. >> wow so these are the big cap tech stocks and these are the generals so in the last stages, they come for the generals but we've

certainly seen a lot of other sectors being taken out much earlier. it is sort of a rolling correction that we've seen particularly in the innovation stocks and the fin tech stocks and i'm wondering is it possible that there are opportunities there that they have perhaps staged some sort of a bottom or close to a bottom before these big cap generals have? >> well, i think not only is that possible. that frankly historically is likely by the time you get to your index low, most stocks have typically bottomed i think of 2008, 2009, the s&p bottomed in march of '09 but most stocked bottomed in october of '08 so there was a six-month gap between the stocks made their low and the index did. that is the appropriate way of thinking about this. i don't think we should confuse a price low in some of the speculative stocks with their res resumption as leadership i don't think the stocks that broke first will suddenly re-emerge as leadership but they

bottom before the index does. >> so there could be a trading bounce in some of the names, is that fair to say and i'm wondering what pockets are you looking at for that? >> i think that is reasonable. remember, we kind of have a little bit of a pergatory quiet period before we get july earnings the next six weeks are not bad we do have some of the oversold conditions so i wouldn't be shocked if you got some of that speculative tech to bounce here. but again, is it really going to re-emerge as your leadership on the other side, that is where i'm skeptical. >> last question, a lot of people want to enter energy right now with a pullback that we've seen is that smart or do you wait >> i think energy is going to remain your leadership here. i recognize it is gotten slapped around here these last week or so, i think it is indemic of the market and it is sold in the context of an uptrend and despite the weakness in energy

equity over the last couple of weeks there is no stress in energy credit. i'm much more comfortable buying weakness in the sector when credit conditions are stable that is still the case with energy. >> chris, thank you. good to see you. >> thank you let's get' check of the markets because we're fading the dow is now negative. we're down by about 34 points and the s&p up by just .1% and the nasdaq has a 133 point gain. and up next, mike santoli heads to the telestrator to look at the s&p 500 and if it is starting to look oversold. and as we head to break, check out the top tickers on cnbc.com. mostly macro interest today. the ten year yield followed by the crude and the s&p and dow and tesla. but i didn't wait. i could've delayed telling my doctor i was short of breath just reading a book... but i didn't wait. they told their doctors. and found out they had...

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s&p 500 trading 23% from the 52-week high mike santoli is looking at the damage done under the surface. >> damage has been brought it is been deep. here is one of the ways to measure them this is the percentage of stocks in the s&p 500 that are still within 20 percent of their high. as you could see right here, it is just over a quarter coming in today. and what i find interesting is how it compares to prior major market sell-offs and lows. the covid crash, that went down 35% on the s&p in five weeks or something and that was pretty much on par though with late 2018 also here, interestingly, in 2001, 2002 the huge stocks led the way down and it wasn't the s&p on the small stuff. but here is the one that scares everybody. to multi-year bear markets, 2008, 2009, that is where you have to be careful but for most part a lot of payback is in the books. as chris was saying, it is the fuel for some kind of snap back

oversold rally at some point, maybe not right away take a look at stocks versus bonds on a quarter to date basis. and why is this important. as you get into month end, you do see the mechanical rebalancing. 60/40 type stuff and that is a stock market down here and that is a huge quarter to date loss. bonds are down but much less so if you are were 60, 40 and engineer now like 56/44 and you want to sweep into bonds we are expiration today, in june, it is historically weak, but who knows after such a washout this week. but by the end of the month, maybe this is a tail wind. >> you say we want to sweep money into bonds at the quarter end. >> into stocks. because they have underperformed. you would want to pick those up. >> great thank you, mike. eps following the big rate hike with the index down 6% how much more down side could be ahead. we'll ask the man who made that call, next

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the nasdaq higher today but the dow is lagging stacks are down big on the week. the s&p 500 on pace to lose more than 5.5% since monday and on pace for the 10th down

week in 11 something that has never happened before. head of equities for americas at ubs, took the price down from 3900 to 4900 great to see you. >> thanks for having me. >> part of this is prompted by the house's downward revision of where they see the ten-year yield ending the year which is now 3.25%. you could walk us through how you get to the 16.5 p.e. that you landed at. >> yeah. sure happy to do that melissa. so yeah, so over the last several years it is been a pretty strong correlation between interest rates and valuation multiples in the market and you know, as we've seen this year, as interest rates have risen and risen quite dramatically, that is an impact on the valuation for the market. so it is really just taking on the higher interest rate expectations and what that means for valuations now, i would say that, melissa,

look, we've had a 24% decline in the markets. but i also think it is important to think about the long-term perspective here valuations for the market are now basically in line with the multi decade averages and it does suggest that investors should expect pretty healthy returns from here. 8% to 10% over the next ten years. so it is a very murky environment but taking the long-term perspective is exactly what you want to do in this kind of environment >> there are some who might argument that estimates should come down further and we haven't seen downward revisions or forecasts from companies yet and that we'll surely see that when the next earnings season rolls around and i'm wondering how you start to think about that. because 16.5, it is the 20-year average p.e. and roughly the 10-year as well and this year does not seem to be an average year when it comes to headwinds. >> yeah. so, look, i fully agree that

we're going to see downward earnings revisions in fact, our earnings numbers for next year are 235 for the s&p, that is about 7% lower than the bottom of consensus. but after a 24% decline in the market, i think investors are expecting at least some decline in earnings and don't really place a lot of stock in the estimates that are out there at this point so i think investors are braced for it but that doesn't mean that we couldn't see some -- it certainly is a head wind for the market as part of the reason why we took our estimates down but on trailing earnings, melissa, we're at 220 or so. that is in line with the long-term average that we're trading about 16, almost 16.5 times trailing earnings, that is the long-term average since 1960 >> what is your top pick for sectors, david, going into year end? >> so, we've had a pretty long

standing call on energy. it has been obviously the best performing sector this year. i still think the outlook for energy looks pretty good especially over time there is no easy solution to these high energy, high oil prices it is going to take time to get supply and demand back into balance. so, i think that still makes sense. obviously we have a recession. nothing is going to be immune and energy will get hit also but we also think it makes sense to balance that without with some defensive exposure which is why we like health care where valuations are still reasonable relative to the market certainly earnings will hold up much better than the market in a downturn and i think a lot of the concerns around drug pricing are likely going away either they'll get resolved or move to the back burner >> david, thank you. appreciate it. david, ubs the fda paving the way tor covid

vaccines for children as young as six months and a cdc panel is meeting right now to discuss approval meg tirrell has the latest for us >> well after the fda signed off on both pfizer and moderna vairk this morning, the decision goes to the cdc who as you noted is meeting with advisers today and tomorrow if that vote is favorable and the cdc director signed off, these vaccine could be available to the youngest americans as early as next week now these are not identical vaccines so it is different of a roll out than we've seen before. moderna is too higher and then they have different dosing schedule sods it will take you three to get fully vaccinateds as well as a month for moderna but 80% of parents want to get their kids vaccinated right away the fda commissioner addressing why they think a vaccine for this group is necessary. here is what he said. >> while covid does effect older

and immunocompromised populations. more adversely than young children young children could still suffer the severe consequences of covid-19. including severe illness and death. since the surge of omicron variant, children's 0 to 4 years of age have been hospitalized at the rate of approximately 5 times higher than the previous peak experienced during delta variant freedom nance. >> and you are seeing moderna stock up today that company getting clearance up to age 17 it hadn't yet had cleerps under 18 so catching it up to pfizer and you could see pfizer and biontech are down. >> is there any difference in the safety profiles of the two since the moderna is such a bigger dosage up front versus the pfizer biontech which is a smaller dosage over time >> yeah, we haven't seen any long-term safety issues for

either of these vaccines of course are small trials so they're looking closely at that over time but in terms of the reaction, how you feel right after you get the shot, there are more fevers with the moderna vaccine than there are with the pfizer one. but overall experts are not worried about the profile of either of these vaccines >> meg, thank you. let's take a check on where we stand with the markets under half an hour left to close out this week. good riddance, right a good of you are saying dow industrials higher by a quarter, s&p up by 20 and the nasdaq clinging to a 1% gain coming up, we'll discuss what is behind today's big drop for oil price and if this is a start of a downturn for crude and you could listen to the "closing bell" on your favorite podcast app. we'll be right back.

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s&p 500 up around half a percent so far today here is a live look at sebctor consumer discretionary and communication services and information technology and today's laggard, energy and by far the biggest laggard on the week today energy is down about 5% and for the week down more than 16%. the travel stocks rebounding after a brutal week. take a look at norwegian, carnival, american airlines seeing gains today coming up, the analyst who said now is the time to bay american express plus what is the latest blow to crypto and tse srihotoes and much more when we take you inside of the market zone. these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq,

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we're now in the closing bell market zone mike santoli is here to break down the crucial moments of the trading day. plus pippa stevens on the big pull back for oil and diana olick on the latest head wind for home builders. after yesterday's sell-off, with the dow and nasdaq still on track for weekly losses. any solace, mike, in the buy the dip at least for today >> i don't me if i would pull too many messages out of what is going on today except that a lot of big mac row drivers of the pressure on stocks have backed off. you mentioned energy and bond

yields have eased up so there is a bit of a tension release. and it is interesting to point out, so we came in today with the s&p down just about 24%. 24% historically is the average peak to trough decline in bear markets that don't coincide with the recession. so you're basically right at that fork in the road went this is kind of how bad it gets if we avert recession, oshs it is not a science but it is worth noting that's now still the debate even though we did get ahead of ourselves in declaring a recession parts of this week. >> we're just talking about the ups strategist and he just lowered his forecast and people are revising earnings forecast and rye vising upward for recession. would you argue that may be positive people are getting on the bear side of the boat. >> i agree it is eventually a positive you absolutely are having people kind of marking their opinion to market as the index has slid down now, there is also a lot of

attention on down side targets everyone seems to think 3500 on the s&p makes sense and 3400 makes sense. it just goes back to certain levels pre-pandemic and all of the rest of it so all of that is a positive i would say. i guess there a counter to that, is that strategist see the market higher. so there is nobody within an official target that said we're in for more losses and i wouldn't expect that when you're down 26% in four months. >> and analysts wait to revise lower. so they're usually lagging let's get to the home builders the s&p etf, it is up about a percent but still down big on the week off more than 10% since monday and new today, wells fargo lowers earnings across the board for the sector including pulte group to 41 from 56. kb home from 31 to 40 and toll brothers from overweight saying its affordable luxury line will be tested for the first time

diana joins us with more and two months ago they were saying that demand was strong and even exceeded supply what happened? >> well rising mortgage rates and then consumers hit by inflation and it was really last month that even toll brothers said they were still having pricing power. so then we see this incredibly sharp downturn in housing starts in may much more than expected and much faster than expected but there is one chart i want to throw up that you don't always see in the housing starts numbers that we got this week and that is the number of homes under construction it is up 25% from a year ago we've been talking about all of this lack of supply, lack of supply, that is going to help the home builders. well the supply is in the pipeline and it is coming an the builders are reporting that buyer traffic has gone away and home sales are dropping and demand is dropping so i think that is why you're seeing these stocks just not get a break and of course the analysts looking at those numbers that are coming through the pipeline and they are concerned, melissa >> diana, earlier this week

there was a cnbc event and you mentioned there was a demand for eye buyers program people are saying to take my home off my hands and i'm willing to sell at a lower price. >> that is a comment that i got from red fin ceo when they were laying off people. this week he put out a big blog and wrote all of this stuff about why they have to do the layoffs and i called him and he said the only bright spot that our eye buyer program is getting more popular sellers are getting scared they're worried they won't get the top dollar so might be willing to take less than top dollar to get tof off the marke or face something from two months from now that prices are falling and they couldn't get what the i buyers are giving them today. >> it seems like investors are willing to separate home builders versus the home improvement stocks like home

depot and lowe's there are people in their homes will still have to fix their homes and improve their homes. >> yeah. there is no doubt about it and the home depots of the world are almost in a way have a staples aspect to the consumption. it is pretty, the run rate is there. they're also big kind of free cash flow and dividend and buy back stories although i did see interesting charts that if you look at the percentage of outstanding mortgages right now, that are eligible to refinance and obviously be beneficial to the borrower, it is almost none, it is almost never lower because rates went up so fast. i do think that is one thing you don't get. the home equity withdrawal to pay for your house and now you have the home builders i look back at lennar, horton and pulte price to book values they're in the low end of the range. not where they bottomed in the aftermath of the housing bubble but getting pretty so bad expectations are being prices in. >> and tapping a heloc is much

more expensive thank you, die sanaa and credit card are surging after an upgrade over at baird that said the under-performance provides an opportunity to add exposure to the group. joining us now is the analyst behind the call, david george, baird senior research analyst. great to have you with us. >> good afternoon, mel ace you how are you? >> good. thanks in terms of what the stock have priced in, have they priced in more delinquencies, what we've been seeing in the auto sector, in some other credit sectors where consumers are having more difficulty to pay. >> they've priced in a significant downturn in our opinion. probably very severe recession unemployment of 8% to 10% in our opinion. so we think the group and the credit in particular are pricing in what i would call a draconian scenario and with the panic selling, we think it is a great opportunity to start to add exposure to those stocks again.

>> talk us through the exposure that american express has to travel, david. we see people traveling and that should be in theory good for axp. >> it is the travel and consumer as you know, the consumer spend patterns are shifting from things to experiences and travel as you mentioned, mel, it is a huge positive for amx and amx is probably the most levered company in our glroup of stocks to more robust travel and that is a trend that we think will last through the summer and into the fall and into the end of the year and expectations are quite low on the stock in our opinion. >> you say that these companies generate a lot of cash and make a lot of money and also there is this lever that they could pull in terms of pulling back on marketing spend. how much of a cushion is that, that the ability to pull back expenses >> well it is very significant it is something that many investors are really not aware of both amx and cap one spend up to

8% of revenue in marketing so when credit quality is softer, you tend to see these credit card companies pull back and vice versa so it is a an excellent lever as credit moves up and down through the economic cycle >> should one have any concerns about the profile, the credit profile of the capital one. >> cap one is in the business of taking risk, particularly in the low end consumer but if you're buying the stock at just over tangible book value, and 7 times what we think is normalized earnings and five times formalized earnings, we think that market participants are getting paid to take that risk at these prices >> all right, david, great to speak with you thank you. >> thank you david george over at baird check out oil prices, sharply lower. right now down about 6%. worries about a slow down as

central banks hike rates and pressure in oil and brent and wti on track pippa stevens joins us crude have been one of the brighter spots how much of is this is a fundamental story here. >> for a long time the story was that demand is robust but we're starting to hear more and more chatter that demand could actually soften here if we do dip into a recession if there is some global growth slowdown and with wti down more than 6% and snapping a seven week winning streak, private wealth said that everyone is grasping at straws trying to find the reason and she said that while the fundamentals remain strong, there is no zdoubt that the dow side scenario has goen more probable and deeper here than forecasting just a few weeks and even up until last week and there are some technical factors

at play here rob benson noted that oil had double topped at 122 with the down trend showing a move below $100 and so he said that this is liquidation heading into a three-day weekend without any upside catalyst that could push crude higher in the near term. >> mike, it is interesting to see the weekly decline on crude itself the underlying versus the equities which is the energy sector overall is seeing about a 16% decline so far in the week so there is a huge, even though crude at 110 is highly profitable for these stocks. >> well there is no doubt. and obviously the energy stocks get caught up in general kind of across the board index selling there is an element, too, of investors in aggregate are taking massive losses everywhere from crypto to bonds to bonds to stocks and that is going on and so naturally just from a portfolio effect you kind of have to sell what you can if you need to kind of build up a

cushion again. so all of that is in play as well as the potential concern about demand and in a slowdown scenario you have biden go to saudi arabia the idea that headline risk might work in the direction of lower oil prices people are talking about negotiating settlement with ukraine and russia who knows if this is true. but the psychology that is getting into the market a little bit. >> and there have been something before pippa, if there were peace between russiaand ukrain that that oil would not -- from russia, the energy from russia would not go to europe it would still remain banned but if there is a peace deal brokered, that could be part of the peace agreement. >> presumably yeah and in general it will get into the world market in another. >> pippa. >> once you implement sanctions it is hard to unwind them and even if there is a peace settlement and that is a big if, it might not be an immediate move to have it go back to europe as you said and

particularly now that europe has started to implement a strategy to shift away from russia. but also as you noted, even with wti at $90, energy companies are minting money at that point. so wti could still fall quite a bit further from where we are right now. and these energy companies could still be raking in a lot of money. >> pippa, thanks pippa stevens. let's turn to bitcoin. under pressure, down nearly 30% for the week on track for the worst weekly performance since march of 2020. this comes amid another credit crunch crypto hedge fund three arrows capital is considering asset sales or a bailout after failing to meet margin calls it is the latest to fall victim to the crash in crypto kate rooney joins us this is a huge ripple effect for a lot of the assets that that they're looking for a major asset sail and under duress. >> we're seeing collateral damage and it highlights the risk for counter parties in this

in the high yield products that have almost no transparency in where they're getting 18% or 0% yield in some cases. so not a lot of disclosures on the back end it also goes back to the collapse of luna that stable coin that was supposed to be back by other cryptocurrencies it is just a reminder that there is just not a lot of transparency on the back end and r we're seeing some of the severe ripple effects i'm told some of the lockup periods, i talked about the 18% yield, a lot of the projects that give that type of yield require some of the investors to hold and keep their money locked up in these projects for say a year if customers meanwhile, if they're shopping that yield, and they have people coming in and saying all right, well i would like to get my money back. they can't necessarily liquidate in some cases. so i'm told that is causing some of the issues here and it also highlights the need for people in a lot of cases to custody their own assets i'm told there is more discussion around that not wanting the counter party risk and just the focus on

holding your own cryptocurrency, not going for the 20% yield, looking to protect what you have >> kate, what is so remarkable is that the three hours capital is a hedge fund that existed for a decade so they've been through some crypto winters before. so this is not the first time. you have to think about the hedge funds that are newer and have not navigated this sort of treacherous price action. >> it is remarkable. and i'm told we'll likely see more of this this is probably the tip of the iceberg in some ways not to say that it will necessarily end up sparking other issues in the broader financial markets. but there is a lot of counterparties here and like i mentioned, not a lot of disclosure someone described it as a spiderweb on the back end. this person is lending to this person and there is any what to see transparently, even though the whole point of block chain was to be decentralized to see all of this listed on a public ledger when it comes to the companies hedge funds and you just don't

have that. so i think we'll likely see more effects of this play out. >> the irony kate rooney, thank you turning back to the broader markets and nasdaq holding solid gains. nasdaq dipping negative. a moment ago, with us now is bta capital partner and manager barbara dorran great to have you with us. how are you feeling this week? have you added to positions? >> i doent know if you want to know how i'm feeling it is a tough week but i have been adding to positions. because any time that you see selling like we saw yesterday where every stock is down, just about every sector that is an opportunity i have been buying i bought my favorites in terms of technology. google, apple, microsoft, amazon, but i also added costco, walmart, because i see these as great names that are off significantly for the year and also i added gm. which may be a bit perplexing because if we're heading into

recession one would argue you don't want to be in autos but i think gm and ford are both selling at recession or near recession levels i mean gm right now is under 5 p.e. on next year's earnings and which gives it absolutely zero value for all of the electric vehicle production that will be ramping up in the 23 to 26 time frame. so i think there is opportunities like that that are happening. it doesn't mean that i think that bottom is in. it could be. but i think you're getting some amazing opportunity in this kind of market where investors are taking big inflation and high interest rates. >> mike, it is interesting to h hear investors wanted to add to airplane we heard chris ver on saying apple with 100 and so much of it is transactional less than so% is recurring revenue. it is a one time buy of an ipad or a laptop or an iphone. >> for sure.

it is interesting. in a broad downturn like we've had, relative outperformance all of a sudden becomes suspect. because you feel like all that is in a lot of profits that are yet to be taken. may or may not be true do you think apple in theory should also have that quality premium just because of the balance sheet, because of the aggressive buy back that i doubt they're pausing on at all. buffet owns more and more percentage wise of this company every day because they buy back stock from everybody else. so it is an interesting experiment it is certainly more expensive than it has been on average over the past 10 or i15 years so it is a good debate on this we'll see if it has to somehow retrench that much more just even as a symbol of broader surrender by investors who have been trying to hold on tlooft things that have been doing relatively well. >> barbara, as we look out to next week, should we see another sell-off, a gyration in the markets.

what is on your buy list. >> i'm fine for now because unless we do have another mass, which doesn't look likely, but i don't expect much upside we've seen five or six failed rallies to date. i don't see any legs to what we saw today. maybe it goes up but i think we're just going to see a lost churn as we wait to see when inflation is going to peak, which is what the big surprise was this cpi number a week ago, people were starting to think investors were starting to feel inflation is peaking and you have the fed, recession probabilities are lessening, but that is the number that ended all that so we are seeing a lot of signs of weakening whether it is the housing starts and job growth is slowing though still at record highs. so there is signs that the economy is weakening >> barbara, great to speak with you. have a great weekend barbara dorran we just saw the dow go negative to close out the session mike, what are the internals today. >> they're sort of net positive but nothing too squu -- skewed

one way or another they were up for most of the day. take a look at two-year note yield. you've had this sharp turn lower in the last couple of days this is really the battle front between what you think about inflation and obviously the fed. it was a 325 before we got that leak that the fed was likely to go 75 basis points and it did and now we've unwound a lot of that and so you're taking a quarter point out of the two-year track for fed expectations for hiking and volatility has backed off we're going to finish right on 30. it is the middle of the range we've been in for a while. in divisive going into month end, mel issa. >> mike, thank you we'll see you shortly. meantime, as we look to close out what has been a very rough week, we are looking at major losses in the energy sector for instance 5.7% is the decline. down 17% for the week as crude oil is down to at least a few week low here.

the s&p 500 is holding on to gains into the close [ bell ] >> up two tens of a percent. the nasdaq with a 1.4% gain and that does it for us here on "closing bell. let's send it into "overtime" with scott wapner. >> mel, thank you so much. welcome to "overtime." i'm scott wapner you just heard the bells and we're just getting started i'll speak to mark newton who attempts to answer the critical question for investors where is the bottom. but we begin with our talk of the tape this re-set of the stocks and your money and your expectations for all where all of those might be heading in the weeks and months ahead let's ask jim, severity partners and members of the halftime investment committee jimmy, it is good to see you your optimism was tested this week so where do we go om