there. and i don't have quite as much exposure but the xle does make me scratch my head a little bit because they're buying 68,000 of the october 52 puts. looking for this make some sort of a pullback. we'll see what happens but seeing the huge put buyers right now. that does it for "halftime." "the exchange" begins right now. thank you very much frank holland. checking out what's happening with the markets overall you have to take a look at what's happening with apple and mega cap technology stocks is it time to buy apple shares who knows what's going to happen look at that what's happening elsewhere in the market a big meeting for the energy summit ceos meeting with the administration right now we'll see what they have to say and what it means for oil prices. we have an earnings exchange coming up. it's all about the consumer.

give you the action, story and trade on car max, carnival and fedex ahead of earnings reports. we begin with markets approaching session lows right now. let me show you the boards right now. down 11 points, 3748 on the s&p 500 at the lows of the day, that's it. we were down 12 points at the lows of the day. up as high as 36 handles, 36 points on the s&p. to give you an idea of the trading range so far today the dow industrials down about one half of one percent. the nasdaq up just 8 points now, 11060 just about flat on the session overall. entering this now session low part of the market, the nasdaq 100 trade has been compelling with regard to the most beaten up stocks we've seen the last several weeks and months now at this point among the best performers the names volatile to the down side. data dog, zscaler, lucid group,

okta, auto desk up 5 to 7% overall. we'll see if it's a mix of the short covering or whether there's fundamental buyers who think these stocks have taken a big enough hit look at the oil and gas patch. oil and crude prices are lower, energy stocks entered a bear market so to speak today, valero, halliburton, chevron, exxon all lower occidental was positive for a moment thanks to warren buffett by more but even that's now in the red. yes, that's the stock mark side of things yields are also now falling as fed chair jay powell testified on capitol hill for a second straight day, the ten year note yield hitting the lowest level in about two weeks, hovering just below 3.04%

remember we were approaching that 3.5% level just a couple weeks ago. it's been a market selloff l let's get to rick santelli at the cme group with more on that story. it has to catch attention. this idea we've seen a steep fall in yields in such a short amount of time. >> absolutely. and in many ways it's the perfect storm. think about last week, dom we know last week we saw 70 basis, five basis points increase from our central bank bank of england fifth quarter increase in the midst of that russia turns the valve tighter to natural gas to germany in particular look at a two day of two year note yields the way they dropped, just as you described, dom. look at the june 1st of ten year, not much different on the long end we had curves

steepening it wasn't long ago, twos and tens were close intraday, flipped a bit, now a difference between 29 5 and 303, and fed fund futures, forget the statistic, the numbers and the percentages. look at the fact that it's up 22 ticks off its low close it was, yes, you guessed it, 614 basically all these things hitting at the same time and look at boones boones were leading the way for a while. the market was putting pressure on the ecb to wake up and raise rates and rates started going up look at the spread differenc you can see it started to go down, they're getting closer then everything changed. it really is a lot about manufacturing in germany and energy it all comes down to energy, now it's going the other way when you think about the energy recession in europe, i can't help but think there's so much

buying going on in the sovereign debt market, many investors very, very nervous look at deutsch bank stock if you have any questions dom, back to you. >> economics cyclicality is a key part of the discussion thank you. now to a story developing in the last half hour justice chair powell addressed business investment slowing intel is announcing changes to its planned ohio semiconductor manufacturing facility ylan muoy has more >> reporter: i can now confirm the intel's ceo is in d.c. this week, meeting with lawmakers to try to get them to pass the chips bill that is the bill that would provide $52 billion to the semiconductor industry and his message to lawmakers comes with a warning that if congress fails to act that could

jeopardize ohio's plans to -- intel's plans to expand in ohio. here is the statement i received from intel says that the scope and pace of our expansion in ohio depends on funding from the chips act unfortunately that funding moved more slowly than expected we don't know when it will get done it's time for congress to act so we can move forward at the speed and scale we have long envisioned for ohio. now this investment announcement was seen as a political win for both sides of the aisle. clearly lawmakers now trying to come to an agreement on the broader package that includes this money for this critical industry house speaker nancy pelosi and senate majority leader chuck schumer said they want to get the bill passed in july. they're going to need republican support in order to do it. now we're seeing that pressure from big business to get this done in washington dom? >> break it down for us. simply put, what's the hold up >> reporter: the hold up in

washington is that you need to come to an agreement there is a massive conference committeetrying to hash out th details of this. because it's seen as a must pass piece of legislation there's lots of different things they tried to attach to this, including funding to the ftc to provisions on sharks so it was a really large piece of legislation that's a heavy lift for congress businesses now saying they don't want to wait anymore already ohio has delayed a ground breaking for intel that was planned to happen next month. intel telling me, to be clear, it is still committed to the initial $20 billion investment that it had planned for ohio, but that investment could rise to as large as $100 billion over the course of several years. but that won't happen, intel is saying, if congress doesn't act. >> live with the latest on that intel story and business investment in america.

and intel's ceo will be joining cnbc on tuesday from the aspen conference it's a must watch interview there. keep an eye out for that a lot to talk about with regard to that business investment picture. much of the focus has been on rising interest rate. our next guest said the fed should be focused on reducing its balance sheet to help the economy. two stocks to weather this potential storm. let's bring in kevin maun. you just heard the report, kevin, there's a lot of angst out there right now about the future of the american economy and business investment in this country. there could be a storm coming. it might be the economic hurricane that jamie dimon referenced a few weeks back, do you feel the markets are prepared for this? >> dom, trying to navigate a

soft landing is going to be nearly impossible as the federal reserve is raising interest rates into a slowing economy an economy that's going to meet the technical definition of recession after the second quarter. so if they raise again in july, they don't meet in august, come back in september and in all likelihood they'll look at a deteriorating economy with clover earnings growth and that leads me to question how aggressive they can be i believe at that point in time they become less hawkish with raising interest rates and more aggressive in raising their balance sheet recognizing the balance sheet trims help the longer end of the curve and help avoid the inversions >> so the r word, recession, is coming up more in the general

conversation these days. if, in fact, you are looking at that kind of recessionary or possibly recessionary scenario, you have plays is it the true defensive sectors, the ones not as sensitive to the economic cycles talk about things like consumer staples, health care and utility? >> exactly right we did the research and looked at previous periods of economic slow downs that led to recessionary periods and those three sectors, dom, stood out in terms of performance, staples, health care and utilities utilities one of the top performing sectors during previous rising rate cycles. two names that we like in two of those areas, quality names with strong balance sheets, attractively price with high dividend yields kellogg, being in the news as of late because of splitting the three biggest divisions they have a yield

3.4%, pe of just under 18. on the health care side we like merck with ayield over 3%, pe under 14 and both of these companies have altman z scores above three. you might ask what's an altman z score? a statistic buy pioneered back in 1968 by an nyu professor to help predict the probability of a company declaring bankruptcy in the next two years. so look for those companies with high altman c scores, that pay a dividend and positioned in one of those three sectors. >> at one point in the past there was a conversation around dividend paying stocks you had to look at interest rates on the other side of things if risk free interest rates for government bonds were on the rise, oftentimes it would be a competitive investment if you will to some of the dividend payers we are in a rising rate

environment right now. is there a worry that some of these dividend payers will lose out to those who just take the risk free government debt. >> if you look at the high dividend yielders perhaps yes, dom. if you look past debts, a look at companies growing their earnings over the last five years, positive cash flow, high altman z scores and attractively priced we think that's the definition of quality that investors should be looking for in a slowing economy that will once again meet the technical definition of a recession after the second quarter >> kevin mahn, thank you very much we appreciate it. >> my pleasure, dom. >> coming up, apple is down 23% since january on pace for the worst first half in a quarter century. but the short term is looking positive according to one analyst. he tells us why and whether you should snap up shares of apple

after the break. energy executives are meeting with the biden administration today to address the surge in prices at the pump. can a meeting of the minds come up with real solutions to bring down fuel prices the exchange is back after this. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this.

your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone.

this is xfinity rewards. you can pick the best plan for each employee our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app.

welcome back to the exchange as recession fears rise investors could turn their attention to companies who can hold on during a downturn with solid balance sheets and plenty of cash. no better example of an ironclad balance sheet these days and a mountain of cash than apple as the company heads into a busy second half of the year. is this a name you want to own or are there better stocks in the i.t. hardware space that offer perhaps more safety. let's bring in tony, one of the top ranked analysts when it comes to the trade tony, we've been talking to you about apple for years now. and apple has been, as i just described, that fortress balance sheet if there ever was one. so is apple a stock you would buy after it shaved a quarter of the value over the last several weeks? >> good afternoon, dominic, thanks for having me on the show look, i think it depends really on your time horizon

apple from a trader's perspective, has a unique seasonal pattern between june and september. so 14 out of the last 15 years the stock has outperformed the market by an average of about 14 percentage points between this time frame and it's typically because the current iphone cycle is derisk so there aren't a lot of expectations about what might be coming up in the quarter and a new iphone that gets produced in september. so we've seen the pattern and may see it again expectations for this quarter i think are pretty reasonable. and again, apple investors tend to look forward. so tactically this has been a good time to own apple i'd say over the next couple of years, we're not as constructive you're absolutely right. apple has a fortress balance sheet and it will -- there's no risk to the company during a downturn but it has a very

transactional business model more than 90% of revenues are transactional. they don't have a lot of subscriptions so if consumer wallets are paired back or directed away from the home and spending more outside the home, you know, apple is vulnerable in an economic slow down. it's the largest consumer company in the world and i think that's the broader risk over the next 12 to 24 months for apple. >> if that's the broader risk then there have to be places in your coverage universe toni that you feel are better risk/reward scenarios given the fact that apple may have more exposure to the consumer trade is there a place in technology hardware or are they all transactional and balsed upon spending >> i would say in the traditional hardware companies i follow, ibm has been uniquely defensive so it's thought of as

a hardware company but the majority of its profits come from software and much of that software is a mothly subscription 90% of the mainframe software is sold as a monthly license. so in ibm's case we estimate 65% of the profit, software, maintenance, services, which are two, three year contracts are reoccurring in nature and that's higher than your typical company. so in the great financial crisis apple outperformed by 20% during the downturn in large part because earnings held up better than other companies looking for safety and you have a pessimistic view on the market ibm is likely the pay to be. pays a 5% dividend, has this defensive business model the question is that prized in,

one of the few stocks flat to up this year in terms of valuation. so the market may be anticipating some of that, but ibm is unique in the traditional hardware space from that perspective. >> let's go traditional hardware then, let's talk about companies like hp or dell for that matter. are they too exposed to a possible business spending slow down or do you think the valuations there with the pull back have made them compelling for that computer hardware side of things? >> what we've seen year-to-date is lower multiple stocks have been less impacted by the downturn if one believes the market may go down another 10, 15% because of weakened economic environment. typically the higher market stocks are going to go down more and lower multiple stocks are going down less. so the dell, hbe, even if

earnings got cut 30% your multiple might go from seven to ten times. that's agreeable with most people so generally speaking, you know, lower valuation stocks will, by definition, likely hold up better from a business model perspective, you know, we worry that companies that are exposed to the consumer have the most revenue risk in a downturn because we do think that they benefitted during the pandemic people were staying at home, they were buying pcs and printers, and so hp is pretty consumer centric, apple is consumer sencentric. on the flip side enterprise spending is still pretty good from corporations. enterprise spending is good, hpe is enterprise, ibm is enterprise, dell is 80% plus enterprise

those are names likely to hold up better. but i think in the broader context, these are cheaper stocks in general. they generally all pay dividends. and they're likely to hold up better looking for defensive names and that's been the case year-to-date. >> defensive when it comes to i.t. hardware. thank you very much we appreciate your thoughts, sir. >> thanks for having me. coming up on the show. the big three airline stocks on pace for the first month since march of 2020. we'll have details ahead. plus carnival sailing towards its longest monthly losing streak since 2018 car max on pace for the worst half ever. and fedex is the only transportation stock positive on the month. what will investors be watching in their results we'll have that in earnings exchange after this. 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. like many families, alexa, turn on the subtitles. the auburns value time spent together. to share wisdom... i got some of my gold before i came to this country. i got some of my gold before you passed the bread. encourage one another... i can buy gold for this?! you can buy gold for this. and talk about life's wins and misses. responsibly sourced like my gold but not responsibly cooked. because at the end of the day, nothing keeps it all together quite like - gold.

visit invest.gold to see how gold is everyone's asset. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or

call the number on your screen. coventry direct, redefining insurance. exchange markets are in the reds but not by much, dow by about 105 points s&p down by about 4 points and the nasdaq up by about 30 now. at the highs the dow was up 230 some points at the lows down 189 so tilting towards the lower end of things. here are some of the movers at this hour. you have kb homes jumping on the back of strong results the company did say, however, that sales rates are moderating as consumers grapple with what else, higher interest rates and inflation. but kb home shares up about 8% snowflake is getting a big bump following an upgrade by analysts at j.p. morgan

those analysts saying they have confidence that snowflake is reaching an inflection point, in their words -- in terms of generating a free cash flow. those shares up 8% right now and netflix, that stock headed towards session lows after saying it began a second round of layoffs that included 300 employees. the company said job cuts are to adjust for costs in line with their slower revenue growth profile right now. now to tyler mathson with a news update. >> within the last hour the senate voted 65 to 34 to bypass -- my microphone just fell down, let me find it. here we go this happens sometimes bipartisan gun bill we're talking about, including help for states to implement red flag laws final passage is expected no

later than tomorrow. president biden said he's disappointed with today's landmark supreme court decision that americans have a constitutional right to carry a handgun outside their homes. the high court struck down new york's gun licensing law a decision the state's governor is calling reckless and reprehensible. >> as governor of the state of new york my number one priority is to keep new yorker's safe today the supreme court is sending us backwards in our efforts to protect families and prevent gun violence it's painful this came down at this moment when we're still dealing with families in pain from mass shootings that have occurred the loss of life, their beloved children and grandchildren >> on the 50th anniversary of the title 9 women's rights law, the biden administration is proposing a major expansion of protections to include transgender students tonight on the news, a strategy

some americans are using in response to soaring airline fairs. back to you. thank you for that still ahead on the show, high stakes gas talks happening, energy executives are in washington d.c. today as prices continue to shock at the pump and congressional support for a gasoline tax holiday seems to be running on empty will this meeting make a difference the headlines and the bottom line coming up next. your shipping manager left to “find themself.” 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 when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web.

because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade (mom allen) verizon just gave us all a brand new iphone 13. (dad allen) we've been customers for years. (dad brown) we got iphone 13s, too. switched two minutes ago, literally right before this. (vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. for every customer. current, new, everyone. to show the love.

minions let's do this thing. on america's most reliable 5g network. mini boss! mini boss!

please stop calling me that. mini boss. mini boss. mini boss! uhh. mini boss! yoo-hoo, mini boss! welcome back to the exchange energy secretary is holding an emergency meeting with oil executives one day after president biden called for a holiday on the federal gasoline tax. the white house trying to put a lid on fuel prices with gasoline soaring 70% since the beginning of the year. but will washington be able to do anything? anything at all to lower prices? joining me now is the vice chairman of s&p global author of if the the new map energy" that book as you're seeing right there, all about the changing landscape in energy. thank you for being here with us i know a lot of people are

calling you right now because there's a lot of stuff happening in the energy markets overall. i understand your phone is ringing off the hook these days given what's happening in washington d.c. >> exactly >> take us through the narrative, the story about this right now. is there anything that the biden administration can do to really provide meaningful relief at the pump for americans like you and i? >> he can provide some relief. dominic, it's good, in fact, this conversation took place and it shouldn't be just once. we need it on an ongoing basis there's things that can be done, relaxing summertime requirements on gasoline. perhaps relaxing the jones act restrictions and moving gasoline from the gulf coast to the east coast. you know, there are things like that and maybe also extra product in canada that could be brought in but basically this is a global problem. every country in the world is facing these problems now because the whole global

refinery system has been disrupted by, of course, the recovery from covid on top of that was the industry really wasn't prepared. shutdowns because of economic. and two other things, russia and china, which are important parts. and that's an effect of the system as well so there are limited things can you do one other thing i should say that's really important is beginning a discussion about how we prepare if a refinery is hit by hurricanes in the gulf coast. i think this is the kind of dialogue we need to have on a regular basis. >> dan, it's interesting you know, not to bring partisan politics into this but many of the things you just mentioned were things talked about over the last four to five years, especially during the trump administration with regard to relaxing certain regulations on energy, refining, certainly opening up capacity, getting more things, suspension of the jones -- there's a lot of thing we're talking about right now. is that really the course of

action do we need to turn back the clock a little bit here and get that risk -- that kind of conversation reset >> certainly some of these issues whenever we have a crisis and this is a crisis for the american motorist today and for american consumers these things are on the table and they've been done in the past and i think by regulations what they mean particularly like having to switch from a winter grade to a summer grade of gasoline so i think some relaxation is what we've done in emergencies before and this is an emergency for the country, for the economy, for inflation. >> do you feel as though the conversation, given this crisis right now, given the war between russia and ukraine, given the issues that are facing our supply chain, do you think the narrative around fossil fuels has now become a little bit more accomm accommodative? do you feel even as though progressive proponents of alternative energy realize there's going to be a longer transition phase where fossil

fuels are part of the picture? >> that's the point. clearly the message a couple years ago was you may as well shutdown your refinery because everybody is going to be driving an electric car. but the framework, is a focus on energy security and the changes take time. as a world, as a country we're continuing to be roughly 80% dependent on hydro carbons so i think there is a realization and you see it in the biden administration a year ago they were not calling for more production of domestic oil. they were not calling for more refinery awalizwalization we're at max capacity and the refineries can't run any more than they are. but you have to deal with the world at hand as it is today. >> the energy secretary's department said the energy is 90% plus right now thank you for those thoughts

have a nice day sir. >> thank you. speaking of energy security, the path to a low carbon future is confronting producers with a unique challenge how to provide energy to meet demand growth while striving for the big net zero emissions classification we're here with some of the companies striking that balance on that front with zero net emissions. christina? >> we know, oil and gas companies have faced huge pressures to adopt stricter emissions reduction targets. in 2020 almost half of co 2 emissions were from crude oil alone. so you have companies like exxon, chevron that have made nonbinding targets to reach net zero by 2050 they can do it with fuel switching, material recycling, use of renewables, the list goes on but there's a change in

sentiment right now. new research shows frequent investors are inclined to think that oil and emission targets are already doing enough especially as we talk about energy security and gas prices that are soaring and this is compared to the general public that is more split on the -- these goals or the balancing act between net zero and energy security even the largest asset manager in the world, blackrock, plans to support fewer climb proposals this year than 2021 because of how demanding they have become so i was fortunate to catch up with the ceo of sunovis, and he's seen a major shift in shareholder opinions just over the last six months. listen in. >> i have seen a huge shift in investor sentiment and there is a very growing focus that a, when people talk about this transition, i think there's a

recognition that that transition is going to take many, many decades. and secondly, that energy security during this extended transition is going to be very, very important >> he, along with other ceos are in d.c. on capitol hill discussing net zero tarts. but we're seeing despite the change in shareholder tone this year despite concerns over energy and climate resolutions, overall climate resolutions are still expected to increase after the s.e.c. allowed for more types of climate proposals at annual meetings that mean fossil fuels are still on the hook to do more. >> thank you very much for that. coming up on the show, the travel snarls. not stopping after thousands of flights were cancelled over the holiday weekend. and they're forcing some carriers to make very drastic moves. we'll get the details on the delays, the cuts and, of course, the cancellations after this quick break. ♪ i may be close to retirement, but i'm as busy as ever.

careful now. - thanks. -you got it. and thanks to voya, i'm confident about my future. -oh dad, the twins are now... -vegan. i know. i got 'em some of those plant burgers. -nice. -yeah. voya provides guidance for the right investments, and helps me be prepared for unexpected events. they make me feel like i've got it all under control. [crowd cheers] because i do. okay, that was awesome. voya. be confident to and through retirement. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

reliq health is a growing global company offering innovative you can act quickly. digital health and virtual care solutions. with a rapidly expanding base of over 120 us clients, reliq expects to uplist to the nasdaq this year. reliq health technologies

welcome back to the exchange another rough day for the airlines as you can see behind me here. multiple carriers trimming services after thousands of flights were cancelled over the holiday weekend. and, of course, amid persistent issues with regard to everything, labor, traffic, et cetera, et cetera. phil lebeau joins us with some of the details phil, i purposefully didn't take a flight to washington d.c. over the holiday weekend and drove instead. because of all the stories i heard just how bad is it >> reporter: well, it's bad, especially up in the new york area look, it's always congested and we've got construction going on at newark and because of that construction, american airlines today granted a waiver from the faa to bring down its schedule at its hub in newark and that's not a surprise given the fact that the problems that they've seen there, they want to limit the problems in the future starting july 1st, they're

cutting 50 flights a day it starts july 1st, expect it to extend at least through august, though it could continue into september or october, and granting the waiver the faa said the faa recognizes the reduced number of available gates in terminal a and the anticipated runway construction project at ewr present a continuous unusual set of circumstances beyond the control of any carrier and again, these cuts, they just put out the july schedule overnight where they are reducing the flights and we're going to see them do that in the next week for their august schedule don't be surprised if they do it for september and october. depending on how long the construction goes and whether or not they feel they need to waive all of those flights look at shares of american, american said for some time the pilot shortage means it's pulling back its schedule, they've done that and they

announced four smaller cities they'll no longer do flights into because they don't have the pilots to do the flights into those cities what we're seeing with united, american, and other airlines as well pulling back their schedules. i wouldn't be surprised if i see more of this over the next couple of weeks. as the airlines realized the schedules they set, they can't meet them in this environment and they're going to pull them back further. >> the administration is dealing with the energy crisis right now and this real critique of transportation right now the secretary of transportation phil, pete buttigieg met with airline ceos last week saying they have to do better but things didn't improve last weekend. so do we think these airlines are moving fast enough to avoid issues over the fourth of july holiday weekend when we're going to see a lot more people traveling? >> reporter: well, you certainly see united saying we want to take the steps in advance of the fourth of july holiday weekend

american also cutting back its schedule into the smaller cities i think you probably will see the airlines be more judicious but for the most part they have locked these schedules in over the next month whether or not they come back and say let's cut back even further, they want to make sure they do not have a repeat certainly of what happened last weekend and with memorial day as well they are under the gun, so to speak, to make sure they can meet the schedules that have been set there, dom. and i wouldn't be surprised if we see at least a little bit of trimming on some of the schedules. >> phil lebeau thank you for the update on the travel season. coming up next on the show, fedex has only missed revenue four times in the past five years. and then near term options in car maxim ply a 14% move after it reports earnings. we get the action, the story and trade ahead of the results coming up after this break

what if you were a gigantic snack food maker? and you had to wrestle a massively complex supply chain to satisfy cravings from tokyo to toledo? so you partner with ibm consulting to bring together data and workflows so that every driver and merchandiser can serve up jalapeño, sesame, and chocolate-covered goodness with real-time, data-driven precision. let's create supply chains that have an appetite for performance. ibm. let's create. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. lemons. lemons, lemons, lemons. look how nice they are. the moment you become an expedia member, you can instantly start saving on your travels.

so you can go and see all those, lovely, lemony, lemons. ♪ and never wonder if you got a good deal. because you did. ♪

welcome back, everyone it's time for the earns exchange where we give you the action, the story and trade on three key

names set to report results. first up you have fedex reporting after the bell today first release since the new ceo took over the company, shares down 13% on a year to date basis. frank holland has the story here delano new advisers, cnbc contributor joins us with the trade. set things up. >> exciting day in transports. the first earns for the new ceo, fedex outperforming ups since then his commentary on the call of high interest with the first investor day for fedex in a decade next week the numbers are first, revenues forecast increase 9% eps 37% year over year they say that fedex will have the pandemic level pricing power. air delivery, half of its revenue, forecast to see mid single digit growth year over year

and ground, forecast to be slightly higher without pricing power a lot of questions about how fedex meets these elevated expectations. >> expectations are the key here and they're what fedex has to do to play catch up with rival ups in many ways which would you rather, fedex or ups here >> thanks for having me, dom i'm a buyer of fedex on that turn around story here frank just mentioned the restructure of management which is a big part of what's going on for the strategy and you have the activist management deal part of the reason why fedex traded higher the last several weeks and you have that as an advantage for them one of the challenges is they need to boost margins and three out of the last four quarters came in lower than estimates but the balance sheet has strengthened that's in a stronger position over the past year, than prior and the restructuring could lead

to efficiency for them that could look to do different things they did boost dividends for holder i'm a buyer on the turn around story. >> thank you very much frank holland for the story on fedex as well. next up is carnival reporting before the bell tomorrow, they've lost more line operator lost more than half its value down 53% since the last report when it posted a wider than expected financial loss. seema modi, will this quarter be a repeat of that one >> that's the big question, jon. the color and the commentary that we've been getting from hospitality companies is demand could not be stronger this summer for the cruise lines the demand story is still recovering and they've also had to use discounting and promotions to get people to book when carnival books tomorrow, the big question is how much are they willing to discount tickets and at what cost what is the impact on margins and this is ceo arnold donald's last earnings call he's stepping down in august and

investors on the call will focus the balance sheet and upcoming debt maturities andplans to sell off some of the underperforming, and the risk of more debt raises could be in the cards with the onset of a recession and that is why the stock has been punished in recent weeks, but if arnold takes a slightly different tone, dom, on the call saying they've got the liquidity to get through the economic cycle, that would certainly be market moving and cruising, looking at past economic cycles, cruising tends to outperform because it seems like a value option, right it tends to be cheaper and for the cost-conscious traveler, i'd love to see if that helps. >> carnival does attack many parts of the specter >> what do we think? carnival is that a buy? that's a value trap for a few reasons and it's trading at levels that we have not seen in 25 years for the stock and the

last couple of years and it's a hamper to their cash flow going forward, if you add the ratio to the highest levels of 2021 around 74% so they're expected to grow especially with the industry, and i don't know if it will be material enough to push it with the value they're getting for cash flow right now. so that's one thing to look at i am just not a buyer and it could be a value trap here, dom. >> thumbs down on delano on carnival cruises seema moody, thank you very much on that one. shares are down 31% year to date despite higher prices for used cars phil lebeau is back with a story on carmax, phil? >> dom, the question for carmax when it reports earnings is what impact is it noticing from inflation and the consumer perhaps slowing down a little bit? yes, we have seen record demand when it comes to used vehicles and the pricing has been strong

and the profit per vehicle has been strong for carmax, but the question becomes, is it becoming more competitive in terms of other auto dealers when it is looking at the used market and is it beginning to eat into the profit per vehicle and they're a couple of things that people will be focused on and higher interest rates will be weighing on demand, okay, what's my monthly payment going to be for this vehicle because it's going to go up as interest rates continue to rise. >> >> all right. delano, what do we think is the used car trade over >> not yet, dom. i'm going to go thumbs up here look, it's obviously a fragmented market, but what carmax was able to do is incrementally grow market share in an incredibly fragmented market and they're the leader of the space over their rival carvana who has outperformed the stock, and i would think this is a volatile industry seeing

incredible demand, and it's still at strong levels when you look at what's happening with supply chains for new manufacturers of cars. i would be a cautious buyer for this one, dom. >> if i can follow up briefly here, delano is carmax the trade or are there other parts of the auto retail market that you think are better off? >> no, carmax is the trade and this is the stronger balance trade looking at 2010 which is 220 million and now above 800 million for the company, carmax would be the trader and not another player for the state >> phil lebeau, thank you very much for the story on carmax and delano, we appreciate it, gentlemen. thank you. >> up next on the show, one crypto ceo has become the industry's lender of last resort as bitcoin just gets crushed we'll get the hundreds of millions of dollars atke here and the reasons behind these crypto bailouts coming up next

like any family, the auburns all have... individual priorities. some like strategic diversification. some like a little comfort, to balance out the risk. others want immediate gratification...

and long-term gratification,too. they have their own interests, but at the end of the day there's nothing like being... a gold-owner. visit invest.gold to see why gold is everyone's asset.

>> welcome back to "the exchange". forget the bank, the crypto world will get a bailout and it's coming from one of their own. the ftx is keeping the industry as prices take a hit he's keeping them stable, how, kate >> hey, dom. sam bankman fried is becoming the industry's lifeline during a crisis the ceo of ftx is behind hundreds of millions of there ares in emergency loans in the past week or so and first it was to block by ftx through voyager and it comes amid a plunge in crypto prices. we had hedge funds failing to be margin calls and all of this is sparking questions about solvency across multiple crypto firms. the industry does not have a lender of last resort or access to fed insurance

bankman fried getting a lot of credit for stepping up here with private financing and some on twitter calling him the hero of the industry and there are comparisons to warren buffett back in the financial crisis or j.p. morgan and the panic of 1907, bailing out the banks before the fed was even created and the move is self-preservation and it's key to keeping his own businesses afloat sources i've been talking to say a high-profile crypto failure would be devastating for the industry and therefore ftx and more crypto contagion could spark retail investors, which ftx relies on and then the term sheets and sources i've been talking to who have seen the fineprint tell me they're not sweetheart deals meaning he's getting a pretty high interest rate and it could pave the way for m & a. >> i just have a few moments left here. are any other private companies going to step up and do what he

did? it does put the pressure on some of the crypto peers here with more cash on their balance sheet. sam bankman fried stepping up could inspire some of the other ones and i am told to keep an eye out for that or more loans from sam himself >> a transition phase, very much in crisis. thank you very much, kate rooney that does it for the exchaurmg "power lunch" begins right now. >> dom, thank you so much and welcome everybody to "power lu lu lunch. i'm tyler matheson, elon musk says they're gigantic money furnaces as it faces supply constraints and are the strengths to tesla's growth mounting or are these normal growing pains? plus a personal finance power