downturns and there are indications that once again, despite inflationary pressures and recession fears, consumers think that the trip to the movies is worth it at least when it comes to the big budget and those franchise films. kelly? >> all right it has a pulse, the theater business thank you very much, julia boorstin not only is the box office back, but the chief strategist tells us why on "power lunch" which begins right now ♪ ♪ welcome to "power lunch. i'm contessa brewer in today for tyler matheson here's what's ahead. wall street layoff a two-year hiring boom is coming to an end. the deals are slowing and the ipos are drying up and according to a new cnbc.com report the math is ominous. plus the nuplunge in nat gas, prices low since late 2018 the ceo of the largest nat gas produce or where they go next and what the g7 meeting means

for energy securities. kelly? >> all right, contessa thanks and welcome. hi, everybody. the market tipping back toward the down side again and they're trying to keep the winning streak going and we're just shy of that right now and about a third of a percent decline and the nasdaq down 0.75 valero and deafon up about 7% and marathon up about four the cruise stocks are some of the worst performers, royal, norwegian and carnival down 1% the nasdaq more than 28% off the major averages are coming off a sharp bounce the dow is up about 6% since its intraday june 17th low the s&p has gained 8%, and june 16th intra-day low well now to the market it's got more to prove than this is just a fleeting snapback and our next guest says he expects a

10% rally this summer led mostly by tech sector barry manster from stifel. on what are you bearing your prediction >> sentiment was very washed out. we wrote a report last week calling for this 10% bounce to 41.50 in the s&p i could see something closer to the mid 4,000 range and that would be close to 14,000 nasdaq and we're 5% below the street's estimates and it's a sentiment bounceback as people feel like peak fed, peak tightening was already priced into the real yields of the treasurys and that's what compresses the price-earnings ratio is those real yields and they look like they topped out. >> all right

so if you're looking at valuation and not earnings here, what's your prediction for what happens for gross domestic product? what are we going to see from the manufacturers? you know, it's interesting we'll look at cyclicals relative to defenses and we'll break the s&p to what's the global industry classification standard and the capital international and 24 industries and you clearly know what's cyclical, right? it will be energy, materials, industrials, financials and what's defensive and what's going to be your staples, health care, utilities and telephones and so for rather than gdp, we look at industrial production. industrial production has to go negative and the pmi index has to break below 50. spreads have to widen and that's when you have a real leadership by defensives over cyclicals we didn't think any of those breaks would occur and we saw the cyclicals bouncing back and

not just cyclical value there. you see it in a bit of a move there, but tech has become value in some cases and a lot of it is cyclical so we saw a bounceback relative cyclical to defense i. >> we saw a 10% summer while exciting and a nice break from what we've been through, could we do that in a very short period of time and kind of spin this narrative ahead a little bit and after people regain confidence in the macro landscape, what happens next >> yeah. i just said, we could go to mid-4000 and push 14,000 on nasdaq i'm leaving a little bit of dry powder because i have to watch the data i have short covering and the balancing of funds this week and those are positive and other brokers have talked about it very recently, but we know what to watch we're watching the purchasing manager index manufacturing and the goldman sachs financial conditions index and the policy

of foreign central banks which will determine whether the dollar is so strong and that's bad for global liquidity and that's a bad thing for the market to burst higher we're watching geopolitics and it's all one big trade and the credit, i didn't mention them, but credit, corporate credit is very important it's all in one big trade. are you in cyclicals and defensives for six months and we are now back to cyclical >> and do you think at this point, the big question on retail investors' minds and the question that most of our guests are being asked on a regular basis is it a slowdown or is it a recession? >> well, the reason we're not up today is because the pending home sales which is, you know, pending with a contract not yet closed that was good and the data was strong and the durable goods

number was very strong and it's not weak enough to stop the fed and they want a slowdown, they just don't want a recession. as we say we'll be watching data in a minute by minute basis feeding it into the models, but right now the economy is holding on and it does not look like a recession in the next six months one thing to keep in mind, the markets are rising this to look out six months and they don't think about recessions in late 2023 their only concern with the next six months is do you see a classical recession in the next six months we don't >> barry bannister, we appreciate your insight and you have a lot of predictions, i'm looking back and see if you're right after the summer. >> okay. >> he's, like, bring it on a big test for the market could come this week when key economic and earnings reports are released joining us with her look ahead is stephanie link, chief investment strategist and portfolio manager at hightower

and a cnbc contributor welcome. before i dive in, are you feeling as optimistic as barry >> well, we are down quite a bit. i want to get through earnings actually first because that's the next two that could drop, but we're pricing in a lot of bad news so that's a very important time and it start in the middle of july and unfortunately now between now and the middle of july we're hostage to the macro which is what i talk about in the show what to look ahead and the big, big number to look aheadthis week is the core pce deflator and it's supposed to be up 4.8% year over year and we know the fed looks at this and they want it closer than 2% and there's a lot of work any heavy lifting that the fed still has to do, and i agree with barry. the data today was actually pretty good and they're probably not going to stop and 75 basis points is expected in july and

possibly september when we get the pce report and pge, is strong data bullish or bearish right now? >> i always root for strong data that's just -- in my nature, right? that's in your nature, too, but clearly we want a bit of deceleration, and we've seen peak inflation and wie coming back down. i think it's a process and it's going to take time earnings set you up 10% and i think that will get ratcheted down and not a disaster, and a little bit lower earnings, but we have to watch the inflation date >> if you're utsch whatting earnings and i have the list of stocks that you're paying close attention to, stephanie, nike

number one what are you looking for from nike >> yeah. so the big question is going to be how bad is china? we know china is going to be awful because vf corp and adidas, and they're down tw12%. i like when they're doing with dtc and the transition there it's very helpful for margins and they have pricing power and margins should stay firm and they have easy comparisons so i added this back into my portfolio a couple of weeks ago. it wasn't for the quarter per se and it's quality on sale and that's my definition of this company. >> that's the case with nike what about with general mills? >> general mills has been remarkably strong this year relative to the group up 5% and the group is down almost 3% and it gives you a 3% yield and then you dig into the numbers and the key will be organing growth or

organic sales. 8% is expected and i know pets are right and aramco foods is up 19% so the type line will be good it will be margins and pricing versus inflation that will be interesting to watch the price mix is expected to be 12% and it's huge. so this one will be an interesting one to follow and but i do like it for the long term >> so nike, general mills and micron to round things out because semis have been a very interesting -- tough space what do you see in the tea leaves it's been a very tough sector. i do not own any semiconductors. i sold out of everything two months ago and i would love to get an opportunity this stock is down 27% trading at six times the problem is we know pcs and smartphones have decelerated from last quarter. on the flip side, nan pricing is up, dram pricing is down 10.

what will win out? it will be an interesting call i'm looking more for color and double ordering and triple ordering and that kind of thing. i don't think it's this quarter, but i think it's in the horizon. >> you don't think you're a buyer after one report of micron, but looking for signs of just how much is behind us >> absolutely. positively, i like broadcom. 49% of their sales it's not even a pure mri with the stock is attractive with one on mied a radar. >> stephanie, as always, thank you very much. we, appreciate it. wall street's hiring boom may turn into a bust and when the revenue declines there is only one way to respond plus chewy off 35% bed, bath & beyond down 55%, etsy down more than 60% and we'll trade three big calls on

ree consumer-related names on our three-stock lunch. for reco. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. 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 to "power lunch. huge layoffs could be coming at wall street banks. cnbc's.com banking reporter has that story and hugh, i thought all these banks were going out trying to hire anyone they could get to walk in the door or even log on remotely. what's changed >> hey, contessa, that's actually very accurate that was the story as of earlier

this year and last year. so let's set the scene a little bit. 2020 happens and obviously the pandemic and the reaction to that is these trillions of dollars through the federal reserve, and taking interest rates 10-0 that set off a deluge of ipos, a deluge of deals and m and a deals and banks and appropriately staffed up and if you look at the numbers, contessa j.p. morgan which is one of the biggest wall street firms out there added 13% for the head count and closer to 17% and those two firms together you have about 15,000 more bodies and the wall street operations than they were two years ago, so that's the scene we have and what's happened this year is interest rates are higher. you've had parts the capital market business be very chilly or shut down completely and you've had a complete drop-off in the level of revenue from ipos if you look at the data, it is staggering and there's a 91%

drop in u.s. ipos and if you look at high yield and the riskier part of the debt issuance, that's down 75% and m and a is down 30% and no part of the investment banking franchise that's been untouched by the revenue squeeze. >> 15,000 people and those were the first two firms and morgan stanley hired more was it too much? i mean, did they just think these trends were going to last forever? >> yeah. you know, this gets back to the nature of wall street is that it was a boom and bust, it's a feast or famine business and when it's raining you have to collect as much of the revenue as possible, and look, the people who run wall street know the street and know it very well and they know it's very pro cyclical and they can't do anything to, you know, to cushion that because you have to have your people and the boots on the ground. as a matter of fact, we led with huge layoffs, and i tend to think they'll be more selective and the people i talked to are

taking in the framework of 5% to 10%. so these are the wall street jargon and they still want bodies they still want people in their seats at the start of 2023 because you don't know if the capital market will open up. you don't know if the damn breaks in terms of the issuance that's in the pipeline that's been pushed out gets to start to happen it's going to be selective, but it will be broad based from what i'm hearing. i don't know if it happens this summer or if it happens later in the year in the october and november timeframe, but the math is very clear. there have to be cuts. >> what are you hearing about how they're factoring in the moves that the fed is making >> the fed has, you know, a series of impacts on the trading operation. as interest rates increase, what's that doing to your risk-weighted assets if you're at goldman sachs or j.p. morgan. you will have less in risk weighted assets for these risky

activities and bring that down, and so certainly traders hate that because then they can make less money and the p & l goes down and what you would say is in a rising interest rate environment a lot of these businesses will make less money and therefore there will be less of a bonus pool to spread around to the bodies that they need to. >> that's a great point, hugh. thank you for bringing us that story and you remember in the lead of 2008, 2009 and 2010 the reaction to the great financial recession in lower manhattan was, not only did you get a bunch of layoffs at the banks and there was this trickle down effect and it affected the mom and pop shop and we're seeing the mayor of new york city trying to combat the work from home culture because he wants the thriving economy. >> now here's an idea, the more that there are layoffs and the more power employees have and the more they have to come back to the office and it could be a

win-win. >> it will be interesting to see how this lays out and presumably, it will be last in, first out kind of thing and maybe people have not made an investment close to their corporate offices, but it does have a way especially with the layoffs of this magnitude affecting it >> downtown is all residential anyway >> it's all baby strollers >> coming up, travel tantrums, booking sites are seeing huge travel complaints and how are travel firms dealing with the chaos? we'll dive into that plus a clean start we'll see a start-up, and those details when "power lunch" returns. 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.

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no way! [phone ringing] hm. no way! no way! priceline. every trip is a big deal. >> welcome back. more than 800 -- 800 flights canceled yesterday that topped 100. the travel chaos a huge problem for the airlines whose stocks remain under pressure and also imagine being a booking company right now. seema mody spoke to that very one earlier today. she join us today. seema? >> this is a high stakes blame game between the airlines and the faa and it is being watched very closely among the travel

industry the cancellations and delays don't just pressure the air carriers it affects the hotels and the online booking platforms that have to find other solutions for their customers often having to work directly with the airlines. i asked booking holding's glen fogle who is to blame? >> it could be a government person with an air traffic controller, either way it's a shortage of people trying to get them back into space and get things up and running and it just isn't happening fast enough compared to the amount of demand that's going back. >> fogle shared that demand for travel is very strong, but that visibility into the fourth quarter is limited as many customers are using a shorter booking window and while past recessions has resulted in a drop in travel, this one is preceded by a global pandemic which he says could change the appetite for travel this winter. in a note to investors btig analyst jake fuller writing that

travel is not immune from the mounting pressure and weakening end froms for airbnb, booking and expedia in the month of june by eight to nine points from may and i would point out the stocks of all three of these online being booing operators are trading down double digits this month. kelly. >> it is so unfortunate, seema and this is supposed to be the summer of reopening and same problem there? >> we saw action in the cruise lines and they were the best performing following carnival. ceo arnold shared and he talked about the pent-up demand for cruising and today these stocks are trading down after a note from the analyst there, saying the pricing offered by carnival is softer than expected into the second half of this year and that what you're seeing carnival do that in order to boost bookings, they're pulling down

the price as it gets close to the date of departur and that's why they're lowering the price target to $20. >> you want to talk about infuriating longtime loyal customers book early and see the price of the cruise plummet. nothing makes them more angry. let's get to bertha coombs for the cnbc news update >> here is your cnbc news at this hour, ten people are dead and 40 are injured after a missile struck a mall. ukraine's president zelenskyy says the target presented no threat to the russian army and had, quote, no strategic value a new york city law allowing non-citizens to vote in local elections is being struck down by a judge who said it violates the state's constitution the judge also argued the law violated sections of the state's election law and municipal home

rule law and with inflation at 40-year highs, workers across all income levels are having a harder time making ends meet more than 150 million adults are living pay tcheck to paycheck en among those making $205,000 or more, 30% say they are living paycheck to paycheck that's an amazing stat, isn't it contessa >> sure is bertha, thank you for that. up next on "power lunch," nat gas down 24% and we'll speak to the ceo of eqt. today's three-stock lunch re a "weconsumer calls from wall stetndpor lunch" returns after this don't go anywhere. costs.xpected out-t so if you're on medicare, or soon to be, consider this. an aarp medicare supplement insurance plan

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welcome back, everybody. 90 minutes left in the trading day as the first half of the year is quickly drawing to a close. so let's get caught up across the markets. stocks especially after the strong week, bonds, commodities and we have the ceo of eqt and we'll kick things off in a moment and let's get to bob pisani down at the new york stock exchange >> a little rotation going on

and a nice rally particularly at the end of last week here and things are moving around today so let's take a look at the dow movers here. primarily last week, the energy stocks got clobbered and a little stronger today overall. we're also seeing health care stocks doing well and a big leader in the dow and of course, we saw tech stocks last week doing really well. not so well this week. microsoft down, apple is sort of flattish today and it's been up 5% or 6% in the last four or five days. the pharmaceuticals, merck's had a new high and there's only been new highs at the new york stock exchange and lily, bristol-myers and merck all higher pharmaceuticals. we continue to have high inflation, but with subpar growth now the big issue right now is whether or not there are signs inflation is slowing down and the big hope over the weekend and the bulls kept pointing out

and the big decline in commodities and even agricultural commodities and this is the big one to watch here dvb is the base metals' etf and that was a 52-week low essentially on friday. you can see it's still flattish today and kelly, the bulls are saying this is the big hope here if you can ton get oil down, nickel down, aluminum down, copper down, that's a great sign for the federal reserve possibly in september starting to talk a little more moderately bob, thank you very much let's take a look at the action on the bond market where the yields have started the week maybe rick santelli can explain it >> how happy everybody was when we had deep greens in the end of last week. there were so many analysts saying we'll get a 10% bounce here and they seem to have some pretty sharp pencil tips and whether you believe that or not, it certainly seems to be

pervasive and the more optimistic, we'll get a slight reprieve on the dark trading days on the equity side and it's brightening up a bit and investors certainly bought into that look at the intraday of twos they had an auction that ended at 11:30 eastern and you see the way that rate popped up? that is giving you great clues that whatever seems to be changing as of late, it's changing without the same buying appetites that were held in treasurys and not that many sessions ago if you look at the three-day of tens and three days we were down at 3% even on an intraday low. 309 on a low close and this was all after an 11-year high close and under 350 in mid-june, which means if you're a technician, 309 now becomes your big area on the charts if you're trying to look for higher wreelds and you'll have your stock on yields on a closing basis and if you look at

one yield, very similar. they had an eight-year high yield on the 23rd with an -- excuse me, on the 21st with a low of 177 they got down to 125 and they're now in the mid-150s and the yields seem to have turned from optimistic moving lower to a little bit more aggressive to the upside kelly, back to you >> rick santelli, thank you very much >> oil, this one's been the countertrend story closing up 2% as g7 leaders consider price caps on russian crude. pippa stephens has more on the commodity desk. >> geopolitical factors are in the spotlight and g7 nations are debating new sanctions on russian energy and opec and its allies are set to meet on thursday crude has come under pressure recently alongside just about everything else and is on track to snap a six-month winning streak goldman sachs said that the distinction here needs to be

made between commodities and other financial markets and commodities are spot assets meaning even as demand growth slows during the recession, and as long as demand outstrips supply, you can remain bullish and others are anticipate ory a the firm is sticking by to target for oil to hit 140 this summer and still a ways to go for that to come to fruition crude wti is down 1.7%, it is down at 115.03 valero, devon and hess among the big gainers. >> pippa, thank you for bringing that us to, pippa stephens what about nat gas prices? they're down on the lowest level since mid-april. they're having the worst month since december 2018 and world leaders in europe are also currently grappling withenergy security at the g7 summit and

let's bring in toby rice and the ceo of eqt which is the largest producer of natural gas and it's good to see you again and we're benefiting from some lng ports shutdowns and other factors here and what do you expect will happen with nat gas prices as we move into the fall >> i think you cited the drop recently and a few months before that, we're talking about the extreme rise in natural gas prices, all of this shows the incredible volatility that exists in the natural gas market today? why does that volatility exist because it is supply/demand fundamentals are so tight right now and they'll have short catalysts that will have a big impact on price movements and it's a sign to put more supply into this world because of volatility natural gas prices will continue to be strong and will continue to be strong in the future and

it's a sign this this industry can do a whole lot more and we need some assistance to get the infrastructure needed to get the supply into the world. >> for instance, if u.s. producers were able to supply the world as it needs, what do you need to make that happen presumably, there needs to be an investment in infrastructure how quickly can that be up and running even if regulation were not an obstacle? >> yeah. >> so very simple, we can build anything in this country in 24 months and l if you take regulation and the red tape out of the game. if you have the facilities and the pipelines and move the gas to those facilities in less than 24 months, you can put gas on the doorstep of europe for a cost of $9 and that would imply a dollar 4 bass price here in the united states. consumers in europe would be thrilled because they're getting $3 today and compare to the $6

today is an absolute bargain the best news about this, though kelly is with that pricing structure this industry can generate modest returns and what that means is this is a profitable solution which means this industry can finance this ourselves. it will cost the american govern gove government zero dollars and you can get to work bringing the energy security to the u.s. and the allies around the world and replacing russia's influence on it is world stage. >> that said, we're at a moment where we have to see leaders or a g7 type thing to explain to the participants here what does the u.s. have to do andwhat do the producers have to do to hit the certain benchmarks i don't feel that level of k coordination is happening and in the energy space we don't want to create cartels and does there need to be a globally coordinated e foort where the

supply comes from in order to get through the next 18-month period of time >> kelly, it's important to mention that leadership today is not responsible for this energy crisis that we're in today this has been ten years in the making, but i will tell you this, this leadership is responsible for how we get out of this and the issues that we face are simply an antihydrocarbon, antifossil fuel and the concerning thing you need to hear or think about is the energy crisis that we're in today, the high price e the rampant inflation and the war on ukraine oh, and by the way, the emissions around the world are still rising when when leaders say they'll continue to double down in the situation and doubling down on high prices and inflation and the -- and russia's influence on the world and unfortunately, that's not going to be a winning solution let's step back and refresh it the good news is we have a great

solution the united states could be a leader in solving this we can unleash our american energy and provide the energy security to the world while unleashing the initiative on the planet and we can do it very quickly, but we'll need our leaders to step back and reassess the situation >> the scientists are saying that actually going toward natural gas gets the european countries especially away from their commitments around the paris climate accord, but all that aside, there is an immediate threat they have to get through winter of 2022, and in two years you could have infrastructure in place and is there anything american producers can do right now to ensure there's an energy stability in europe this winter? >> kelly, this industry is running at full tilt right now we've been trying to supply energy to our allies even before the bombs dropped in ukraine since january, this industry has delivered over 1 trillion cubic feet to our allies in europe and

that thankfully has helped refill their gas tank and put some armor on them, but make no mistake about it, they're still in the jaws of putin, and we need to be doing more to give them some more security. we need to think about this right now, prices are surging and typically, you don't see the great demand now we're entering the demand season of the summer where people will be driving more and prices are rising. gasoline prices are unneslie high and let's look forward to the winter and natural gas prices are extremely high. in new england, they'll be north of $20 and we'll be selling the same gas here at seven >> toby, i have to leave it there and i appreciate you joining us and your thoughtful on these by the way, it's contessa and not the first time i've been confused with kelly. >> sorry, contessa.

>> that's okay decimated by wildfires, as we head to break, remember you can now listen to "power lunch" on the go and listen to us on your favorite podcast app follow us today. the brunettes are back after this

wildfires have devastated forest land in the american west, and the threat is worsening. restoring the forests is vital in the fight against climate change diana olick join us with start-ups with the story of one company flying into the char woodland >> drone seed is a seattle-based start-up that claims it can begin to quickly restore thousands of acres of wildfire-ravaged land just 30 days after the fire is out >> we are a one-stop shop for reforestation. >> drone seed likens its fleet of drones to a swarm of bees navigating rough terrain, carrying and dispersing tlouzs and thousands of seedlings >> the aircraft themselves

they're not what you can get at best buy they are eight feet in diameter. we operate them in groups of three to five and they're going out there and dropping seed vessels on to the landscape in pre-surveyed areas key to the model is the seedling production which has been a major barrier in deforestation due to supply chain issues silva seed, one of the oldest seed businesses in the nation and it's now expanding to become the largest private seed bank in the west growing millions of new seedlings. how does it pay for all of that? >> we provide offsets that allow those better actors to decarbonized while other solutions come online. carbon credits which is purchased by the locks of shopify. it bought enough to remove 50,000 tons of carbon from the atmosphere and in turn, drone seed is replanting 300 acres of forest lost in oregon's beachy creek fire two years ago >> that climate benefit,

planting those trees and drying down carbon is what we're purchasing through our carbon credit purchase, and so that allows us to balance out our unabatable emissions from our corporate footprint. >> drone seed is backed by 776 dbl partners, social capital, spero ventures and techstars total funding to date $36 million. forest restoration is increasingly important now because of how climate change is increasing the severity of fires. in the past, lessee isser have fires would leave the seed in the toil and at the tops of trees and the high-severity fires we're seeing now due to increase temperatures burn the tops of trees and destroy the seeds in the soil and there's so much match rl regeneration. >> and it destroys what we see in the level of soil as well so it takes out all of the new

rients they seem small. is there a faster, los angeleser scale. >> you would think they could put big airplanes out there like when they put out wildfires and you have the carbon emissions and until we have electric airplanes you have to go with the drones. >> we want to flag a scoop that cnbc is reporting right now. according to a notice viewed by cnbc, amazon will have two prime shopping events this year and the second one coming in the fourth quarter and it will be the first time the two will hold shopping events and it comes as the company gears up for prime day, july 12th and 13th. the company's looking for ways to secure additional sales after being booing the slowest for any quarter since 2001 we saw that in its latest earnings report because if you're buying a heard holidays are they self cannibalizing and

what if they offered discounts on prime day or days >> a potential defensive name amid the volatility. needham says he sees chewy climbing and that is in today's three-stock lunch, next. 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

welcome back, everybody. time for today's three-stock lunch. our focus is on consumer-related calls on stocks that are all down sharply this year not hard to find that. but we had chewy upgraded to buy it by needham. they're saying the stock could rally 40%. they also downgraded etsy, number two here, to hold citing recent pressure on the consumer. and bed, bath and beyond, number three, cut to neutral today on lower store traffic. let's bring in jeff killberg, the chief investment officer at sanctuary wealth let's start with chewy what do you think about the stock? >> well, in regards to chewy, i agree. let me bring up my top analyst he definitely wants a little love on chewy. but it's interesting because this is a stock of good news and bad news

june 1 it was trading $20.60 it's up but it's still down 35% year to date they're not profitable yet but this story does have more upside but it's been a double whammy for them. post-pandemic a lot of customers walked away but it was operating conditions costs have risen for them and supply chain issues still persist. but it has the ability to run back up to its 200-day moving average so i'm a buyer. >> needham looking at the consumer thinking maybe etsy is not going to do that great, gets downgraded, but it's a perfect place to find a pooch accessory, if you ask me. >> i want to be a buyer here as well it's a really interesting stock. i've had to go on to look for that unique gift i had to have a play like a champion time and it was only on

etsy so it's really interesting what they have done they have absolutely been taken to the woodshed but market penetration less than 50% across all the markets. they also had some acquisitions. they spent $2 billion in dpop. that's their active users are all younger than 26. they're introducing younger people to etsy so there's an opportunity but technically it looks like it wants to regain its 200-day moving average you have to be careful of a name like this from a market cap perspective. >> all right, that brings us to bed, bath an beyond. i'm trying to think of what your play would be here both personally and professionally. >> well, i love to say like will ferrell in old school i hope you get to bed, bath and beyond tomorrow but that's not the case here i think you have to stay away. this chart is absolutely a

broken chart when you talk about a high beta name this is not even $600 million from a market cap perspective. it's a broken chart, down over 50% year to date you look at this chart and i know you love to play limbo there at the headquarters but this is a limbo chart, how low can it go? i think you have to stay away. i want to close with one positive thing it's up 500% since its ipo in 1992 in the last ten years it's down nearly 90% stay away at all costs. >> look at that market cap, $546 million. tough times. >> jeff, thank you we appreciate that. >> take care. well, this is the beginning of the end we're saying good-bye to the volatile month, the quarter and the first half of the year but the coming rebalance could shake things up even more. we have it, next had no ide investing regularly could add up this much! ♪♪ go to investor.gov today to learn about compound interest

and other valuable investment information. before you invest, investor.gov.

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medicare supplement plans also let you see any doctor. any specialist. anywhere in the u.s. who accepts medicare patients. take charge of your health care today. consider adding this. call unitedhealthcare today about an aarp medicare supplement plan. welcome back to "power lunch. stocks slightly lower today but as we head into the final days of the quarter and the first half, could we see a rally as money managers reposition in their portfolios kristina partsinevelos joins us with more. >> there could be a rally of 7% this week. and there are four major factors in this rebalancing cycle that standing out firstly you've got markets that have been down for the first half of this year this past quarter and then this past month, which is why a bear market bounce is gaining steam and you've got some dip buyers

in there liquidity has been low it's five times lower than the historical average that's why stocks can swing drastic aem. investors are oelgd on to an excessive amount of cash on the sidelines. and then lastly with global markets under pressure, short selling has increased and any small uptick could push stocks up even further. why did i say 7% the market was down 10% and experienced a significant rally close to 7%. and then on the most recent monthly rebalance we saw similar movements. a 7% rally again exemplified by the circle on your screen. given low markets, low liquidity, high cash piles on

the sideline and higher short interest as of late along with historical regression, markets could rally 7% this week. >> that could be 14%, the nasdaq in two weeks. >> it's interesting because we started off "power lunch" with barry baunster calling for a 10% rally in the markets and now it could be 7%. well, when everyone agrees on one thing whether it's bearish or bullish, we know how that plays out. >> kristina, thank you for joining us and for the prediction. cash on the side, it seems like there's a lot of places to deploy it, right >> and let's do a quick check of stocks coming off a week where we've seen 7% gains on the nasdaq there's the dow, the s&p and the nasdaq all under water today the nasdaq the underperformer we'll call it. again, contessa, i think we were both struck by the

underperformance of the travel and reopening names. this was supposed to be their summer. >> i think the headaches and the travel crunch that's happening now may have an undermining effect on some of these names. >> definitely. and on the consumer. wallet, all the rest of it all right, everybody, thanks for watching "power lunch. >> "closing bell" starts right now. stocks are trading in a fairly narrow range following the s&p's best day in 2020 on friday the most important hour of trading starts now sara eisen is on assignment at the aspen ideas festival she'll join us in just a moment. here's where things stand in the market well, you can see the dow is down fractionally, s&p is down fractionally the nasdaq down about a half a percent. some days are a marathon, some are a sprint some are that friend who's walking the 5k and that's today. but check out action in energy that's a littl