before this market hits a bottom >> thanks. maybe we can do a quick check on the energy complex on our way out? >> got any energy stocks >> wti around 107. >> $20 drop. >> it got close and we've seen it coming back >> shall we say good-bye >> good-byes are hard. >> they are hard thanks for watching. >> "closing bell" starts now >> thank you, kelly and tyler. stocks rebounding from a steep premarket loss as oil and the fed take center stage. the most important hour of trading starts now welcome to "closing bell." take a look at where we stand in the market a lot better than where we started. we got as low as 364, made a few attempts at going positive and now looks like that's sticking the s&p is up about .6% as kelly and tyler were mentioning, energy is under pressure as crude declines everything else is higher. real estate is the leading

sector on the market along with healthcare we've got a big show coming your way. in just a few minutes, a rare interview with cliff asness. his fund has been on a tear in year despite significant macro headwinds. we'll get his latest thoughts and ideas. then we'll speak with the ceo of mondelez fresh off a deal to acquire clif bar how energy has performed versus tech and consumer staples. >> modest move, but really it's the sectors and factors that seem like they're in a short-term flux. this dates back to the eve of the pandemic crash the market peak, february 19th of 2020, before the covid crash. nasdaq 100 relative to the energy sector. obviously tech opened up this huge lead. right here,especially. you saw it was going in different directions

more recently since november, huge move. big correction in energy it's going against tech. there's some flavor in the market today of maybe we've seen some peak inflation. maybe inflation can soften up and maybe of course we have those growth concerns we're worried about. i know you remember this, sarah. a month ago i poirnted out the momentum factor grabbed on to energy and staples that's what momentum was in this market so this is over the last year right here energy, massive outperformer you see this whole time, the momentum etf was going down until about a month ago it rebalanced and bought energy and staples. here's what's happened in the last month these things have mostly been moving together as opposed to one another. energy has faltered and it was a last bit of pure momentum in this market. >> of course i remember. one of my favorite dashboards ever president biden, thank you, michael. president biden calling on

congress to impose a three-month gas tax holiday. eamon javers with the latest >> that's right. the president may be calling on congress to pass that gas tax holiday, but it's not clear that congress is going to answer that call what the president wants is a three-month gas tax holiday on both regular gas and diesel going into september he also wants states to pass their similar versions of that he wants industry not to pass along any benefits they get from that holiday, to pass along those benefits they get from that holiday to their customers. the president also had a word specifically here for the oil companies. here's what he said. >> to the companies running gas stations and setting those prices at the pump this is a time of war. global peril ukraine. these are not normal times bring down the price you are charging at the pump to reflect the cost you are paying for the

product. do it now. do it today. your customers, the american people, they need relief now >> but up on capitol hill, prospects really unclear we just within the past few minutes got a statement from speaker of the house nancy pelosi saying in effect you know, we'll see. we saw the house democratic chairman of the transportation committee put out a statement saying that he doesn't like this idea at all. so it's not clear whether there's support enough among democrats. certainly not republicans to support biden here not clear this idea is going anywhere anytime soon, but the white house thought they needed to be seen doing something >> also getting a statement from the national association of manufacturers coming out again does anyone support this idea? >> the white house does. and they're saying this is the way to go. but look, a lot of what biden

did today was put the kbblame in the lap of putin president biden was talking to the american people saying look, republicans are blaming me, but this is about putin's invasion of ukraine that's why gas prices have gone up and he praised the american people saying they do what they've always done. stood up and defended democracy and implying this is the cost we're going to have to absorb as part of the war effort, but there's political finger pointing going on took into consideration. hey, look, this is not my fault. it's putin's fault >> oil prices are down today >> maybe it's already working. >> we'll see thank you. after the break, our exclusive interview with cliffasness, whose funds are having a stellar year you're watching closing bell on cnbc up 140 on the dow.

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asness for his first cnbc interview in more than a decade. he said he's got his butt kicked during the pandemic, but the situation has certainly changed this year. his global value strategy fund is up 48% this year. the s&p 500 down more than 20% over that time i asked him about the thinking behind his strategy and why many value funds have taken the leg down in june >> june is actually one of the first, not horrible, one of the first bad months we have seen

for value in a while thank god we spend a ton of time with our clients showing them post the tech bubble peak. i don't want to overstate it no period's exactly the same, but i think they kind of rhyme value made a ton of money over the next four years. it was highly, as the geeks would say, nonlinear it didn't make one divided by four years worth the money every day. it had big comebacks then whatever forces on the other side disagreed so you'll never, you shouldn't do this expecting to have a calm life but the giveback is not that huge this month and why are we sticking with it that spread, i love to talk about. the value spread had dipped below the tech double maximum but the july, excuse me, the june tradeoff, has left us back tied with the tech bubble i kind of don't count covid. it did occur i don't mean you can remove that from the record, but i don't

think that's something like you said, want to plan on pandemic risk all the time. so we're sticking with it because we always like some value in the portfolio and we like more when it looks very, very cheap and it's basically tied, it's back, tit's way off its highs but the highs are so high it's tied with the tech bubble i still think relative prices are crazy out there. and you know, this month -- >> prices between value and growth >> yeah. >> still too expensive although some of these tech names have been shellacked >> some have i just wrote a piece on our website talking about how value is not all tech versus everything else. in fact, and this gets bogeeky, the way we do value on this, and we first wrote our first paper 27 years ago i'm starting to say a quarter century. i think it sounds more elegant

and mature we don't believe value and other measures do a great job of vetting industries and sectors we think they do a better job within industries and sectors because it's more apples-to-apples you can make a lot of money on sectors, but you can also lose a ton of money >> so you're not talking about going long energy and short tech >> no. for us, we're looking for the cheap, and the other things we believe. profitability, low risk, momentum >> can you give us some names? >> first, i have to give you huge caveats everyone at aqr is terrified when i talk about specific names because it's not what we do. in a global market neutral portfolio, not just value, but multifactor. we might have 750 names long 750 names short. most of the time, i don't know the specific names and that sounds bad. if i was a manager with 15 stocks, that would be terrible but we're not betting on one

name we're betting on cheap, profitable, good momentum stocks outperforming, but because i knew i was coming on tv, i'm a little terrified that we'll do well, but whatever i mention here will do horrible, so we have to make an agreement. you're not allowed to come back a year later and say you recommended this and -- >> meta. is meta a value stock? >> i call it facebook because meta's a stupid name but both meta and amazon are generally liked but our process now. they're cheap versus their peers. again, we do industry comparisons. they're not always perfect meta is a social media and what not. amazon is internet retail. i think is the official name even though that doesn't capture web services they're never perfect mappings, but they both look good on a combination of calls value profitability and low

risk investing. the mix is a little different. amazon is pretty good on all three. meta is very profitable and not bad on value or, or low risk so both of them are at least again, our long holdings are trivial and for the record, again, if meta and amazon die, i'm not to be held responsible, but they, to give you a flavor of the process, yes. they would be ones included. and those are traditional growth names. you know, if you leave the growth world, the faang world, i can give you an example. my old stomping ground goldman sachs. looks pretty good on our process compared to other financials it's fairly cheap, which is rare for goldman. it's more profitable, and lower beta and lower volatility. and let me give you one scary

example of something we don't like i've only told you things we like i didn't know this till i was coming on tv, but we have a very tiny short of amc. so we got a meme stock short now again, you might laugh that i don't know this. i don't know it because it's never mattered we had it throughout the whole craze. we don't notice the size >> it's not that surprising when you want a short, high valued stocks >> no, because it's terrible on everything we care about it is more than any of the other examples i've given, it is super expensive, super unprofit b and super high beta and volatility to anyone running a quantitative process that's anything like ours, i wish we were totally original, some, but not totally original, i think they'd all hate it. but i think it's like a 12 basis point position in the portfolio. so -- >> small

>> this is scary i dare all the meme stock maniacs. >> they're after you they don't like hedge funds. >> let them come it's 12 basis points they are crazy people and i will not notice them, but they can have their fun >> any other examples of stocks that look completely overvalued right now? >> virgin galactic is another one. don't ask me for too many more because i was cribbing for this. again, i don't usually do this that's pretty ugly on pretty much everything we care about. but next time i come on, i'm going to read 750 names long and 750 names short. >> we'll take it i think a lot of people want to hear >> we'll have much more from that interview in a few minutes, including his thoughts on whether recession is coming and whether the fed can do anything to stop it also, his take on bonds and whether they are looking overvalued or undervalued.

after the break, we will talk about from cliff to clif bars, the ceo of mondelez. this week in the snack space dow still up about 105 pntois. low of the session was down 364 earlier this morning we'll be right back. (vo) while you may not be a pediatric surgeon volunteering your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back. so you can live your life. that's life well planned. this is crafting the moment that changes everything.

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adding clif bars to its portfolio. the acquisition expected to close in the third quarter was announced this week. the ceo, dirk van de put, joins us for an exclusive interview. good to see you. >> good to see you >> i've been having conversations with investors and analysts about the deal. it surprised them on the size. it's a bolt on, but bigger than they're used to from you and maybe how expensive it is. can you talk about the growth now for clif and luna bars

is it really a growth company? >> certainly the space the bar space has been growing very well. if you look at the last five, seven years. during the pandemic, the consumers were less mobile obviously the growth slowed down, but we've already seen a big -- last year and this year, we see some strong growth. so if you look at the longer term, clif has been always growing at high single digits. so certainly from that aspect, it's worked. you have to also take into account that we are a relatively large size company in north america and that we can have a lot of top line energies help them to grow more and a lot of cost, as you can imagine. add to that the fact that we can really give them a space in the international opportunity that exists where these bars are only just now starting to grow and if

you add all that up, the fact it's an $800 million business, yes, that i think makes it worthwhile with the valuation that we have. >> so it's ninth deal i think you've made since 2019 the timing though is interesting. clearly you have flexibility in the balance sheet, but tough time where people are worried about prospects for the consumer food inflation has affected you and other companies. how do we read into why now? and whether more deals like this are coming in this kind of environment? >> well, i think what we see so far is despite the fact that there is high inflation and prices are increasing, the volumes are not yet affected that is always possible. but so far, the consumers are being quite resilient in light of what is going on. we do know that biscuits, chocolate, and this bar space tend to do quite well in

recessions and we have momentum on this brand and several other brands so we don't know what's going to come exactly, but i think we'll do fair and so far, things are going quite well not saying we're going to immediately make other deals that depends on the opportunity and what is available, but i don't think we can just sit here and wait and see what's going to happen we try to grow for the long-term future and if these opportunities present themselves, we are planning to make them happen >> it's so interesting that you say that volumes haven't really been affected, dirk. just in the last hour, president biden is calling on congress to for a gas tax holiday. you have a good window into spending at gas stations for some of these snacks do you think that something like that will make a difference? in consumer spending >> yes, i think it will. we can clearly see when consumers go and get some gas

and they're a little surprised by what they see that then affects their purchase of what else they buy at the gas station. it's clearly that there is an effect there but most of our products at this stage are home consumption and during the pandemic, home consumption is significantly going up you also have to take into account that in a recession, consumers tend to spend more time at home and having a chocolate or having a biscuit really helps and we believe that for instance with the bar like clif, which is an outdoor type of activity as the millennials and generation z become a bigger part of consumers, that will play a role in how we see consumption.

>> protein wellness over cereal and granola bars kellogg is splitting up into three. something you're very familiar with getting a global snacking company as that was part of your origin story i'm just curious whether you think this is the start of a trend we're going to see more divestitures and break ups and possibly m&a as these independent companies spin up. >> i think so. we've been saying it for a long time and we are believing in the space. snacking within the food space is the most interesting area it's not slowing down. it's accelerating. there's a big difference between being in this space and some of the other areas. and so it's understandable what they're trying to do we did the same thing when we split off from kraft so i think that will lead to more of these things happening, but also i think that could lead

to more m&a and bigger snacking companies being formed >> dirk van de put, thank you for weighing in on that and your deal as well appreciate it. ceo of mondelez. still ahead, much more from cliff asness including whether he thinks bonds present good value and what he thinks the fed's biggest fear is right now. "closing bell" will be right back welcome to your world. your why. what drives you? what do you want to leave behind? that's your why. it's your purpose,

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earlier, you heard part of my interview with cliff asness who is vastly outperforming the market this year he named some stocks that look good now including meta, amazon and goldman sachs and names that don't look so good, amc and virgin galactic. we also talked about the macro landscape. i asked him view on bonds. >> bonds, we don't do a lot of market timing though in some of our oldest hedge funds that were really kind of the ancestor was stuff we did at goldman sachs were completely unconstrained, a tiny part will take a directional position where we do that, we don't like bonds. we don't dislike them quite as

much as six months ago if you think about things we like, the value isn't great, but not nearly as bad when rates scream up. even with inflation high values aren't quite as bad, but momentum is worse and there are a series of other things so if you absolutely force me, i'd say we're negative on bonds. also in the trend following world that doesn't really look at value and the managed futures world, we're short bonds that's not a shock that's the trend >> it's a trend, but also they've sold off pretty hard so you might look at it and say there's value there. >> yeah. where we consider both value and momentum and quality factors, there is, i would phrase it kind of depressingly. there's less terrible value. in bonds unlike some of those tech stocks we came up with. i don't think i can say bonds are a value play at this point. this doesn't mean if we enter a recession they won't be a big bond rally but in terms of the things we

compare yields to, bonds are considerably less disastrous but that is with praise. >> you mentioned recession and that is the talk on wall street. it's not what you do is have necessarily a view on that, but won't value be affected if we do go into recession? >> i promise you everything will be affected. just don't know which direction. our strategies are not very macro sensitive. they have more good than bad periods or else we wouldn't be doing them they just don't seem to be systemically related some of that comes out of some mundane stuff. like i mentioned, we don't take a big industry bet this is not what we do so i don't follow it sclosely, but i can imagine an index that takes huge bets can have a lot more recession exposure than we have. when you're long on short based on both value and quality and risk and momentum across every

industry in a balanced way, you're really betting on specific names so it will affect us because recessions are big events and if you tell me crazy stuff's going to happen, we're going to make more or less money than usual probably because the world's volatile but i don't think we have a very direct bet on recession versus non recession. >> do you have a view? >> i do, but it's a purely personal one we don't trade on. i want to be careful clients out there, do not listen to me about these things i think the fed probably fears recession more than they fear inflation. they fear -- >> it's not what they're saying. >> i know it's not what they're saying >> but historically, this is scary because the next time it won't work, but most macro economists think if we really have to, we know how to kill inflation. it will usually bring on a worst recession and you only do that as a last resort

volcker is the ultimate example. but i would bet, and again, not what i do, but that the fed feels like if inflation really gets out of hand, we have a playbook if we get into a really bad recession, rates are still pretty low we can cut them again. i think they're probably more nervous about that so they'll be raising rates for a while. this doesn't raise the general direction. if i were to bet which side they'd err on, no matter what they might say they always have to sound, i have spent my career avoiding being a fed parser i can't think of anything more ridiculous than hanging on every word i think powell is speaking right now or soon and trying to parse it and they're always trying to tell you something, but mislead you a little bit they probably a little bit more worried about a serious recession. >> therefore they won't go crazy -- >> they'll drop less than some down the middle would have gone.

anything can happen. we live in a volatile time you could see inflation with growth, or the one everyone fears, a possibility of stagflation. not certainty, but higher possibility. >> feels like we're in it even >> we're entering it we really haven't entered recession, but if we see a slowdown in the economy, inflation won't stop on a dime once it's going. inflation, like 50 years ago, macro economists thought they'd figured out inflation and it's quite clear that they have not and so inflation has a little magic to it. once it starts going, it tends to keep going. again, not a prediction. i'm too cowardly to do that. but i will say the probability, the chance of staglation, we're a lot closer to it than we have been for a long time >> because there is a school of thought that once inflation peaks, if it starts to peak, and

the economy weakens as the fed raises interest rates, that will be a good time to buy into some of these growth stocks, especially unprofitable tech companies that are 80% off their highs. >> remember, it's a great question we own some of those >> unprofitable companies? >> we love profitable, cheap companies and it's a weighted average of everything we believe in non quants are added, too. so being extremely profitable is a very large part of what we believe in it didn't help from '18 through '20. it did help a ton during values troubles from 2009 to 2017 value suffered but we actually did quite well because things like fundamental momentum, profitability, low risk

investing all did really well. i think of that as a loss of value, but one that was deserved i think of '18 through '20 as a bubble loss for value. so we believe in profitability we do believe in growth companies. we weigh that against value. in a bubble, nothing else matters. if you care about price, you die. but in a rational market where some of those names were restored to halfway back because they're very profitable, i think we could be fine in that >> are you overweight or urchd weight stocks? >> almost everywhere, we're flat either a market neutral long on short. we run a lot of money that's traditional. people call us a hedge fund. more of our money is beat the benchmark, low fee, kind of boring there we don't take a beta bet where we do in the few places we are on the short side.

on the value is still, it's not nearly as bad as what stock valuations have gotten better. not as much better as you might think because bond yields have gone up but still have gotten better but they're still not great and the momentum is lousy and trend is directional version of momentum. so again, nobody do this at home we're not the place to come to for market call, but where we make little tiny ones, yes, we're net short stocks but i promise you, it's a small part of what we do and we can have days where we make or lose a lot of money in my market direction. >> you can watch the full interview on cnbc.com/pro and y you'll get more including his thoughts on private equity buybacks which he has coined the term buyback derangement syndrome and has gone after president biden, who today repeated that oil companies should not be

buying back their stock instead investing in oil and gas production asness said the president is wrong on that. still ahead, kohl's taking a dive following a cnbc scoop surrounding its offer from franchise group. we'll talk to the reporter who broke the story. and coming up on "mad money," don't miss jim's interview with meta ceo, mark zuckerberg in the meta verse that should be cool. kicks f nit,:0p.oftogh 60 m. eastern here on cnbc crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

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well would you look at that? ♪ ♪ jerry, you've got to see this. seen it. trust me, after 15 walks it gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon! [golf ball bounces off rover] unbelievable. ugh. [ding] after the break, stephanie link plus, david faber gives a look

inside his documentary dow has just dipped negative so we've lost all the gains in the last few moments market zone, next. making friends again, billy? i like to keep my enemies close. guys, excuse me. i didn't quite get that. i'm hard of hearing. ♪♪ oh hey, don't forget about the tense music too. would you say tense? i'd say suspenseful. aren't they the same thing? can we move on guys, please? alexa, turn on the subtitles. and dim the lights. ok, dimming the lights.

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just took a tumble and the dow and s&p are pretty much unchanged, which looks better than the open today. i got to speak with cliff asness of aqr don't often hear from him. he came out and my biggest takeaway was, he put on his value cape and says we are still in value, believe in value it's only worked in the last year or so and has outperformed growth. really not till june when it went negative, but it's still done better than growth and saying he still sees the spread is the highest it's been since the dot com bubble and should work thenext few years >> it's great to be back i kind of agree with him this year, i got more balanced i have such a big bet in energy

and materials and financials at this point in time that i now lean back to value i agree. i think if you believe that the economy is not hanging out into a recession, but that inflation will be high and interest rates are going higher, long duration assets will suffer and even though i heard you ask the question, technology stocks have plummeted, but are still expensive. so here's the dilemma we have and this is why we're chopping around i was about to start the discussion by saying i was really excited because we saw dip buyers today and we haven't seen them all year long. now obviously the markets are doing their thing and they're kind of flat to down slightly, but we're not out of the woods because we have two big questions to get answered. how long is the fed going to tighten and how secure are earnings the fed just told us again today they're going to be data dependent. so now we're going to be laser focused on inflation all over the place.

we get core pce deflator data next week then the cpi on the 3rd of july. oil and commodity prices have come down. on the second point, earnings, i think you're going to have to ratchet down from 10%. i think the market is cheap, but the pockets of value are cheaper than the pockets of growth >> yeah, interesting he put meta and amazon in that category. now to the semis the sector down on the day new today, major automakers and chip suppliers urging congress to move quickly to pass that legislation with $52 billion worth of subsidies for u.s. semiconductor production the senate and the house have passed separate versions of the bill that need to be reconciled, but wihile the push to build chi plugs is fierce, is the timing of the sector off? because we could be heading into

a slowdown kristina partsinevelos has more. >> you know it's been over a year that congress has been working on this $52 billion funding and they can't get it into law even with pending letters to congress asking them to pass it. so to your question, demand is still strong in lagging chips used by the auto sector, but we are seeing a slowdown hitting the end consumer we can show you numbers for the drop in global smartphone shipments just the latest three quarters for the last quarter it was down 9%. then some are calling this now a peak cycle for certain semiconductor companies. two names two focus on morgan stanley says the stronger market is strong enough to off set for amd and that amd's valuation is relatively reasonable stock trending about 27% lower in the past few months and bernstein is focusing on broadcom strong cash flow, attractive

valuation, but multiples are plunging stephanie has talked about this before double ordering. concerns about consumer weakness, inflation. and are we going to get cuts to earnings in the next little while? that would further drop multiples then lastly, you talked about stocks, just have to say, it's having its worst calendar year, month, since 2008 >> wow june's been rough. down 8% for the s&p. worse for semis. last hour, president biden called on congress to enact a three-month suspension of the gas tax amid the soaring oil prices it's the perfect time to take a look inside one of the oil giants cnbc's david faber got exclusive access inside exxon mobil for his documentary tonight. joining us now is david faber. you know it's a big day when david makes his debut in the market zone. welcome. it is literally today's news

what you went into, which is exxon trying to find the balance between new energy, old energy, and how to position itself >> without a doubt you're right the news is played to our strength here in terms of presenting this documentary tonight, but it is that pressure that they're always under an that the ceo is under in terms of pleasing shareholders, who may not want you to put that much more money back into the ground so to speak to continue to increase production over a long period of time. no that they aren't, because they are that's video of us climbing the huge tower in corpus christi. you think of et lean, all the building blocks for plastics when it comes to oil and gas, exxon is still increasing its oil and gas production its shareholders, how do they feel about it? also the efforts to the company to reduce its carbon footprint

that's something we took a hard look at and asked executives about. how serious are they what kind of capital commitment are they making? what opportunities do they see that are available at scale today to reduce carbon the way they have said they will, of course they're spending 15 billion over the next six years but they have an ambitious to be carbon neutral by 2050. that doesn't include the burning of whatever they are taking out of the ground. that includes their own operations >> david, president biden has also ramped up i think his attacks on the oil sector, and urged themto invest more in exploration and production and refining even in today's speech, went after them for using money for share buybacks he's telling them to invest in something they don't see as a long-term, profitable bet. but this kind of tension is playing out with the letter from

chevron this week. >> you know, it's interesting and i don't want to make too much of our documentary, but i hope some people in the administration watch it. this is a company that is just not known that well. az as relevant as it is been to people for as long as you can imagine, over 125 years, since john d. rockefeller founded this company. a lot of people don't know much about it because it's been closed so that is why it was extraordinary that we were given the access we were i bring that up because it would seem that exxon is still viewed and big oil is still viewed in some way asnot a partner, but an enemy and you'd imagine, and this came from mike worth at chevron and darren woods responding to the president, how about a dialogue? how about some conversation about the pressures we face and you face and perhaps they can make real progress one would hope that would be the case, but i will say that perhaps you know, the lack of transparency into their business

to a certain extent has hurt them >> all the more reason to watch tonight. david, thank you we look forward to it. like all of your outfit changes as well. exxonmobil at the cross roads premiers tonight shares of kohl's are plunging following a report that franchise group is considering a lower bid for the retailer closer to $50 a share than the previous 60. that coming from cnbc.com's lauren thomas. she joins us now on the phone. so tell us about what you have learned, what has unfolded in the last few weeks since we first heard that this deal was on the table >> yeah, thanks, sarah i know this is a situation that you've been following pretty close as well. new drevelopments kind of spilling out week by week. and the latest this afternoon according to a source that franchise group is now actively weighing a lower bid,

essentially. closer to $50 a share like you said down from that $60 mark that it had put in now the two companies have been in this exclusive sales talks window that's run about three weeks. that's set to expire this weekend. so come this weekend, we would expect one of three things to happen either we would see an extension of those talks we would see a termination of those talks essentially franchise group walking away or we would see a done deal. it's still unlikely, you know, which of the three at this point is going to happen again, you know, from what i'm told, it's very unclear if kohl's would be willing to accept the lower price at this point, but franchise group, from their perspective, they've watched really what's transpired in the retail environment and target is really the biggest example that i'm constantly pointed to recently. they announced this massive kind of plan to overhaul their inventories to mark down

products, to move goods off of shelves and out of warehouses, which is going to weigh on profits in the near term if that's something target's doing, you can only imagine from the rest of the retail industry st facing and what they'll have to do. >> it is far from a done deal. lauren thomas, thank you very much and great scoop here on the latest with new franchise group lower bid. steph, final thoughts on the market as we go into the close looks like the s&p 500 is up a tenth of one percent we were coming off of a pretty strong two days here, but it's interesting to see energy and treasury yields lower because both on the flip side have played a role in the stock market selloff >> yeah, that's telling you demand destruction, recession fears. everybody's talking about it now. i'm not in the recession camp, not this year, but i did increase my odds after the fed meeting last week for next year. we'll have to wait and see you don't have to chase strength in this kind of market stay patient

focus on quality companies i know everyone's talking about quality companies, but then you just did this great interview with mondelez and look what they're doing. they're trying to find growth. saying the macro environment is challenging but we're going to find growth and be proactive look at kelloggs yesterday diamond back energy. two dividend increases in a month and a half's time. chesapeake just raised their dividend and increased their buyback. johnson & johnson is splitting up look for companies doing proactive things shareholder value friendly things that's the kind of market we're in, but do not buy into strength here >> steph, thank you very much. great to have you. we have got the s&p 500 unchanged right now. you have to really break down and look at the sectors to see what's going on. real estate is doing the best along with healthcare and utilities. there's strength in communication services and staples today. energy is the biggest loser for a change in the market down about 4% as crude oil

prices take a dip. the dow jones industrial average just about unchanged down more than 300 up more than 240 at the session highs of the day looks like we're going to go unchanged. we're weighing in recessionary fear today earlier, there was a news article published by the former new york fed chairman talking about how we were looking at a hard landing and recession he's been a truth teller lately and that caused a lot of concern about the economy. you heard from fed chair powell today. he testified no major news and interestingly did not signal the size of a potential next rate hike just to expect that rate hikes would keep coming and stay vigilant on inflation. said that recession is clearly a possibility, but still thinks there's a chance of a soft landing. that was the basic takeaway from powell you're seeing a buying of bonds today. ten-year yield back down to 315. nasdaq just dipped into the red.

it's down less than a tenth of one percent. we're at the close we've got the s&p 500 little changed. names like moderna moderna soarg with netflix and docusign. overall, pretty much unchanged now i will send it into overtime with mike santoli. mike welcome to overtime. i'm mike santoli in for scott wapner you just heard the bell. we're just getting started we begin with the talk of the tape a hard reality of a soft landing. jay powell warning congress that steep rate hikes could tip the economy into a recession, but stocks held in there as investors have assumed as much and were reassure that had the fed will do what it takes to bring down inflation so given today's action on the back of yesterday's rally, is the market finally showing real signs of