pushes demand higher >> diana olick with the latest on housing another industry going through pain rid now, the airlines we have the latest cancellation numbers and they're pre-cancelling and apologizing already for july fourth and what will it take to get it back in force? that's the latest on "power lunch" which starts right now. ♪ ♪ and welcome to "power lunch. i'm eamon javers in for tyler matheson the supreme court strips the epa with some of its power dealing a major blow to the biden administration's climate agenda. this hour, its impact on business and what it means for eig investing. crypto crisis and that's how one analyst is describing the collapse in prices, but he's also betting coinbase will come out of this rough patch stronger and we'll ask him how he thinks that eamon, welcome stocks off well off session lows and the dow is off suggestion

points the nasdaq down 51 as we look to close out the year falling below 3% remember, it had been up to 3.5% going into the fed meeting earlier this month at the 75 basis point hike and a huge reset since then talk about resets. shares of amazon down 1.5% today down from the pre-covid lows from february 2020, a complete round trip back to the pandemic lows for amazon shares, eamon? >> we are two hours away from closing out the month, the quarter and the first half >> the dow and s&p are on track for their worst three-month period when the pandemic sent stocks tumbling for the first half the dow down 16% and that makes it a relative outperformer compared to the other major indexes. >> disney and nike, the two biggest decliners each falling 30% this year. the s&p down 21% year to date on

track for its worst first half since 1962 which was a long time ago. the two biggest losers, netflix down 71% and etsy down 30% so far this year and 23% for the quarter which would make this the worst quarter for the index since the first quarter of 2008. our next guest says these first half declines could turn into second-half gains. courtney garcia, senior wealth adviser, thanks for being here explain how you have the optimism in this wreckage. i just read horrific stats down 67% and you're saying there might be some wins to come >> things are not looking good in the market and they're pricing in the chances of a recession are definitely increasing and people are very negative right now even when you look at economists polled by "the wall street

journal," they report a 44% chance of a recession in the next 12 months as opposed to when you looked back in january. the markets will price in a recession before the recession actually happens and that's what you focus on as an investor. when the markets are down 15% the first half of the year which has happened a couple of times in history and you tend to have a really good second half of the year by an average of 24%, if you can believe that i think what you want to take a look at is there is an idea of rising tide rises all boats and you will take dwashtage of the opportunities where you will do well in a period that will have inflation which even if it's peaking it will still be here for a little while >> do you go after particular sectors? do you go after particular names? what's your thinking i to think you want to focus on your value which i don't think is highlighted enough right now where if you look at the s&p 500 it's down 20% and if you look at the russell 1,000 value and

that's down 13% for the year as opposed to your growth company that's down 28% and that's a huge disparity right now and i think that will continue where you will outperform and looking at things like your energy companies which have done well and having a pullback, and a great opportunity there and looking at banks and health care, that's a good opportunity. >> you say you like chevron in the energy sector. why is that? >> there are several i do, but i do like chevron and they have good dividends right now what's interesting to note about chevron and especially your energy companies in general, energy prices will likely stay higher for longer here, but even if they don't, even if they start to come down their break evens are lower and they can buy back 25% of their shares if oil prices are at $75 a barrel over what it is today and take advantage of the great dividend, as well. >> you have an interesting pick

here in healthcare cvs health i would think it's a pandemic play and that's where we all mobbed to in the beginning of the pandemic and we stripped the shelves of every product and now maybe they might be on the wrong end coming out of covid, but you say no that's a good place. >> health care is a good opportunity especially if we go into a recession and it can withstand a recession better than other companies and cvs i really lick because you look at the health care and the health hubs back into their storage which is increasing your consumer retention and their engagement within their stores i think there are good opportunities to be had in cvs, as well. give us a bank >> i'll give you another name with a "c" here, and citibank. >> courtney, of course, with the "c" words. >> right i tried.

>> citigroup. >> exactly it pays 4% right now and this is interesting and the banks recently increased the dividends and citigroup was not one of those and they're coming out on the more conservative side and i think looking at the more conservative ones is definitely interesting here >> is that just a pricing power thing when you have interest rates going up, they have more pricing power and they can charge their customers more. >> exactly right they're charging versus what they're paying down on the savings rates and that difference on the yield is getting stronger which is more that they can take advantage of it exactly right. >> always work those spreads, courtney garcia, thank you for your time. >> thanks for having me. >> bitcoin down 7% in june on pace for the lowest month ever below 19,000 pressured by the etf application. coin b.a.s.e., not unscathed down 40% as well and all of

coinbase's bad news is here and oppenheimer's o wen lao has an operate on coinbase with a $90 price target how did we get there >> how did we get there? i understand in the near-term coinbase will be suffering because the fed keeps tightening policy that would keep pressure of the trading volume in the near-term, but longer term this is actually the environment that the stronger player when coinbase can slide and they have a very strong balance sheet and 6.1 balance in cash and they have a strong brand name and number three, they are expanding and diversifying their revenue stream so longer term, i think coinbase can be one of the survivors and become stronger in the longer

term >> you have a $90 on coinbase and i'm looking at july of 2021, you had a $444 target on that and a buy rating on it you said people should buy it at 377 in february and a 314 in april and 197 in may and that was your price target and now you're down to 90. are you just telling people to buy this all of the way down >> i think that is a question, and we did not expect the severity of the fed tightening policy to underestimate the leveraging cycle and we would tell people this is a lot of volatility and also in this industry our investment thesis is still, when you go in this space in

1991, 19 stocks came down by a lot, but stronger term one of the stronger players would emerge much stronger and they'll recover -- not very quickly, but we cover at a very good level longer term. >> i hear what you're saying about short term and long term prognosis, but it's been a year, owen, and you'd never put a sell rating on the being to, right? >> our thesis is the long term thesis we never put a sell rating because we believe in the block chain industry and it is more than the trading for us, there are many cases such as the lightning network in the payment space with the cross border payment and the settlement and it takes time to build this infrastructure and now it's a good time to build this infrastructure. so again, i want to the go back

to our long term thesis and thank you for giving us a chance >> overall, you could make the other argument as easily crypto, the whole basket of a pandemic flag. a lot of people at home had a lot of stimulus money, and they jumped on all of the this photo. now that those prices are reversing, doesn't that just drive bodies away. that's exactly what's happening right now, but again, you have to look at these technology from an infrastructure perspective and that's been our investment thesis we think it can benefit some of these trading avenue like many of the exchanges, but it's just

a -- what's the real business use case for bid kip and the block chain that you think will really take off in the next year or so? >> i'm not sure about next year or so, but number one, lightning network, if you look at the number of transactions per networks, you can talk about 1500 transactions per second and if you go to the lightning network it can process a million transactions per second and it can be one of the big use case for block chain and the transaction and settlement and also energy and the creative economy come into nft and try to

build the community by leveraging nft block chain technology. >> so high speed trading comes to the bloc chain. thanks, owen lao his price is $90 and he's been a buyer. >> kind of been a buyer all of the way down here which has been true for a lot of people coming into space cnbc dives further tomorrow at 6:00 p.m frank holland will host "crypto night in america." coming up, from bidding wars to travel chaos, a former ceo says what will win the battle for spirit and dow inc.. three of the worst per forring stocks 30-year they're as we head to break, a look at walgreen's the worst performing product that

the waning demand for covid vaccines

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that's not taking place. it was called off by spirit airlines this was to have shareholders vote on whether or not to approve a merger with frontier airlines that has been postponed. they announced that last night it will take place on july 8th that's a week from tomorrow. if you're keeping track at home they're now five times that jetblue has made an offer for spirit that spirit has rejected. twice, they have approved a deal with frontier. there's the chart showing the number of times that this has gone on. jetblue after hearing that the vote has postponed issued a statement saying it's clear that spirit shareholders have handed the spirit board an undeniable mandate, but it's certainly a victory for jetblue. if you look at shares of spirit, keep in mind they will continue talks with jetblue as well as with frontier for jetblue and frontier, the question now becomes does frontier come up with a richer offer?

one where they perhaps have a richer cash breed, does anybody end up with spirit there are a lot of people, guys who do not believe that this will end with spirit merging with anyone. >> i don't want to ask you too far out on a limb speculating because you've been doing such good reporting on this, but what do you think is going on behind the scenes here. >> look, jetblue looks at this and they have a couple of things in mind and one they would love to have spirit because it gives them the ability to grow which is going to be severely restricteded if they can't make this deal happen the other option -- the other thing to keep in mind is if you are jetblue you do not want to see frontier and spirit gets together, whenever merges with spirit it becomes the next major airline in the country, they would not like to see a deal between spirit and frontier take place. they come from the same

corporate tree, if you will. they believe they can create a low-cost juggernaut and that's why they believe there's a synergy there. >> phil, thanks so much. we appreciate your reporting here as chaos continues in the airline industry almost 21,000 flights have been canceled coming into the u.s. for the month of june. gordon bethune, the ceo of continental airlines and a cnbc contributor. gordon can you shed a little bit of light on this what is happening here >> the world's kind of turned upside down and i was listening to phil, and reminds you of two dogs chasing the bus i'm not sure the winner is the one who catches the bus on the spirit deal. obviously, a lot of fluctuations in the marketplace because there's a lot of fluctuations with the economy and it all kind of manifests itself to uncertainty and flying today is certainly an uncertain business. >> if you were still running

continental would you be looking for a merger here? how would you play this? >> assuming that's not an option, what will you do >> i'm not sure, eamon, that mergers are deals and you've got to run this organization and hostile takeovers don't precipitate and thinking and good will. you are handicapping yourself because of the contested nature of this deal and it's not a friendly deal and it's not going to turn out well for anyone. >> in the reversal of fortune has been fascinating where spirit was once the most hated airline in the u.s. and now it's jetblue according to "the wall street journal" and gordon, can we talk more broadly about what's happening with this travel chaos that, you know, we now have senator sanders calling on the industry to pay fines for

late flights and pete buttigieg has better customer service and they've already cancelled and they're literally getting apologies from the airlines that they traveled and it's an acknowledgement that it will be so bad >> i'm not sure pete buttigieg knows it from the back of an airplane so i don't know if it will be helpful or not the operations are affected by standards and you're seeing a bottleneck in the supply chain, i guess you'd call it and getting your airplanes out on time every day and quite frankly, the availability of equipment. so your maximum, everything is running at maximum and it doesn't leave a lot of room for error.

any hiccup along the way shows up across the system and that's what's causing the frustration >> so the back end of the plane is the one with the tail on it, right? >> just so we're clear >> that's when a lot of people know about the airline business from the back. >> let me ask you this, though it's been a year since demand came surging back post-covid for the airline industry and you can understand how everything got completely under whack and they had scaled down and naturally, there would be some period of chaos when they tried to get back up and running and a year later they're still up and running and i fly all of the time and it's not getting much better now and the thing is are we in the semipermanent new normal or is this going to normalize over time and we can think of going into the fall things will be back into the usual way. >> i think it will get back to, quote, normal, unquote and there's so much variability with different nations and different rules and different covid

restrictions and different quarantines and so this turmoil that's in the economy and in the system just doesn't bode well for stability and it's got to be stable, on time and reliable and it's frustrating for all of us that they can't get things to normal and normal is defineded by what country and by whom today and what government? it changes all of the time >> the whole economy was stripped so thin before the pandemic just in time manufacturing and the inventory is low everywhere and the airlines staffing exactly what they needed and want an ounce more and when you need it it's just not there for you, with everything. >> and the system's at because there is demand now. november was a killer front revenue wise you see the pent of-up demand.

>> gordon, if i could just ask one more here. obviously, they changed the time out rule for pilots and attendants and that's becoming a stumbling block. should it be change order done away even on a temporary basis >> no, kelly, they've done that. if you flew with a crew member who tested positive you'd have to be locked up for a week and staffing doesn't accommodate for these kind of people changing of the quarantine and the disruptseverything, and th whole am is on look a while. we'll leave it there and check back in soon gordon bethune >> when's your flight, eamon i'm flying and i'm flying

saturday so i'll be in an airplane all week end. >> you will be in an airplane you will weekend >> if not, i'm calling gordon to complain >> the market down 100 points not so bad when you consider we were down 600 at the low earlier. plus planting spy why the government wants to shut down over concerns. as we're ready to turn the page to a new month, quarter and half of the year. ck lchwi brit gh ba what if you were a global bak who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create

welcome back as the dow climbs off today's lows, he's the look at why and bucking the trend and leading to the upside some defense names, raytheon and textron up 5% or more and pfizer up 1% and warner brothers at 2%. now let's get to frank holland for the cnbc news update. >> hi, kelly i am frank holland and here's your cnbc news update at this hour the supreme court could hear a case to give the final word on setting rules for federal

elections. the state courts can find violations of state constitutions. that case is set to be argued in the fall vaccine manufacturers should update their covid-19 booster shots to target the recent omicron sub variants gaining ground against the southwest they want to upgrade the booster shots ahead of the fall. a northwestern university study revealed the number of newspapers here in the u.s. has shrunk by 28% in the last 17 years. 2500 papers have been lost since 2005 in the last two and a half years, 260 papers have shut down and almost all those publications serve small communities. the study found 70 million americans live in a county with either zero or just a single local news organization. that's the very latest >> eamon, back over to you >> ahead on "power lunch." climate change, stripping the epa of its ability to regulate emissions and what this means r e er iusy.

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welcome back, everybody. 90 minutes left in the first half of the year so let's get caught up across

the markets on stocks, bonds, commodities and the fallout for business from the supreme court's epa ruling this morning, but let's start with bob pisani and the latest action at the new york stock exchange. bob? >> kelly, it was sort of a two-part day the first part was the open in the first hour or so and partly because the european markets opened very poorly of course, we have the ecb policymakers and they're meeting in lisbon talking about defeating inflation even if a recession results from that and that caused real weakness in europe and you see the first half and since then, we've sort of come off of that bottom and there's not a pattern in the trading and kelly was mentioning the industrials and we had the big defense names. lockheed, northrop, raytheon don't kid yourself, the biggest names out there and the biggest

of the world, general elects, honeywell and those are dow components to some extent and even deere, 52-week lows on all of these names also remember, we're going into earnings season two weeks from now and guess what's also at 52-week lows and the big money center banks and j.p. morgan, citigroup, bank of america, separately, american express and 52-week lows and that list expanded dramatically this morning at 10:30, still a very tough time for the markets kelly, back to you >> thank you very much let's turn to the bond market with headlines and the yield on the ten-year back below 2% rick santelli with the latest. rick >> if you look at it from the quarter perspective, consider, look at the 24-hour chart. you can see we're down nearly a dozen basis points and we settled in the last quarter, 293 which means yields are up almost 60 basis points and you see on the quarter to date chart and

we're down almost 11 basis points and many are saying that the reason is is some of the numbers of the expenditures and deflators and none of this was higherthan anticipated i'm not sure i'd buy it. they're still sticky high, however, what isn't high are the metrics measuring the u.s. economy and the global economy and that's the fly in the ointment and they're up about 64 basis points and maybe the most important thing i learned today that while it's been a nasty quarter and a nasty year, the stock prices are down, treasury prices are down and yields are up what's really going on here. where is all that money going. i know where it's going and it's going into the fed's rrp, reverse repo parking lot and no it's a record at 2.33 trillion and probably because of the end of the quarter window dressing and it's up nearly half a

trillion dollars and you know all of that money that's supposed to be in the account for margin and the t-bills all that's gotten sucked out the new secret is the fed's draining liquidity in places we don't even look because it's ending up in that parking lot and it's coming in just about everything else. kelly, back to you >> and there's nowhere else they want to put it to work thank you for highlighting that. rick santelli. let's turn to oil which is closing for the day now down 3.5% you can see wti behind me here look at natural gas prices, as well and president biden saying he will not ask saudi arabia to increase oil production and will increase all gulf states to increase output and so, too, is the reset in inflation that yields were just talking about nat gas after the larger than expected inhave not or build, and we're down to $5.5 million upwards of eight or nine just a

few weeks ago and the lxg plant has allowed utilities to stockpile and less of it making its way out into the global markets. let's stick with energy also because we got a major decision from the supreme court this morning that could have wide-reaching consequences for the sector and it strips the epa of some ofits authority and brian sullivan joins us now. bri? >> it's being called a blockbuster decision in a 6-3 call from the supreme court and what it does effectively is it overturns the lower court ruling that strips the environmental protection industry of its ability to regulate certain emissions from power plants, as well and the initial challenge coming out of the epa in 2015 made it for coal plants to cut production or to help subsidize other forms of energy. this was fought by a few states attorneys general led by west virginia and it did uphold the epa's power and it lost in the

supreme court and in striking it down, the chief justice john roberts writes, quote, this court intends to delegate decisions of economic and significance, i.e., how much coal-based generation there should be coming after decades to any administrative agency >> effectively in plain english, roberts is saying that it is congress and elected officials who should be making these types of big rules rather than federal agencies and the decision quickly slammed by democrats and climate activists with president biden saying this is another dangerous decision from the court damaging our ability to combat climate change. this ostensibly is about

climate, but it will be about so much more than that, and without going down too deeply down the rabbit hole, they have a legal doctrine that suggests that any major policy decision that would affect business or society needs to be expressly laid out by a statute or a law and that like the epa are not able to simply put their own interpretation on that i'm giving a very extremely simplified version of the major questions doctrine, but if this line of judicial thinking continues to put into a lot of questions, things like the sec's plan to disclose climate change and a lot of the administrative types of actions that this administration have tried to put in place >> brian, it's eamon here. i wonder as you look at this, the other argument is if congress had any problem over

the years they could have legislated against them and put in laws to say we'll put parameters about this. you can see both sides of this and the supreme court landing on one side of the argument you've spent a long time tracking theic stree this is a big win for the strategy, but what are they going to do now? in i'm not a unless ore congress enacts new new freedom to go forward with something like building a refinery and i'm stretching it just a bit, eamon, but if certain environmental regulations that the epa is pushing are now viewed as either being void or something that you could not push back against, if those go away perhaps the industry has more ability to do some of the things like build a

refinery, maybe even a new coal plant that think, will set off a lot of climate activism. so this point will stretch to my major question doctrine to other indices and industries like the sec cyber and what you follow as well, eamon. this may be about the epa, but this might have wide ranging consequences later on. >> brian, thanks for that. a chinese agricultural film looking to build a new plant facing resistance from the community. check out the semis, down 15% this month, will micron's earnings tonight help get the sector back on track we've got a preview on that coming up.

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huge investment to build a facility in grand forks, north dakota the project could create a whole lot of jobs in a small community and it comes with surprising national security concerns here's what we found in farm country. >> this is grand forks air force base in north dakota, home to some of the nation's most sensitive technology including the rq 4 global hawk surveillance drone and this property sits about 20 minutes down the road, more than 300 acres of prime farmland. earlier this year three north dakota ans who owned parcels here sold the land for millions to a subsidiary of a chinese company that says it wants to build a corn milling plant. >> that transaction has come under scrutiny in washington, d.c. where some in the intelligence community warned the deal could be blocked because it could offer chinese spies unprecedented access to an

american base. it's an only in america kind of fight pitting the rights of the community against national security warnings from high-ranking officials in the nation's capital the foo fong group who says the company is not a threat. >> we are under u.s. laws. i'm an american citizen. i grew up my whole life here and i'm not going to be doing any kind of espionage activities or be associated with a company that does. >> the city's mayor says he just wants to do business. >> it's a $700 million plant and that would be the largest single investment in the city's history. the fbi didn't say there was any immediate concerns they said, you know, if you see something, say something the air force hasn't taken any official position in a chinese investment and a major composed an alarming memo in april obtained by cnbc laying out what he believes to be the intelligence threat. he wrote, some of the most

sensitive elements of grand forks exist with the digital uplinks and downlinks inherent with unmanned air system and their interactions with space-based assets. >> the air force says major jeremy fox was only speaking for himself and he's not the only one with security concerns in a report released may 26th, the u.s.-china, economic and security review commission wrote the location of the land close to the base is particularly convenient for monitoring air traffic flows in and out of the base among other security-related concerns. that's why senator kevin cramer says he opposes the project in his own state despite the economic benefits it might bring. >> i think we grossly underappreciate how effective they are at collecting information, collecting data and using it in nefarious ways and so, yeah, i just as soon not have the chinese communist party doing business in my backyard. both the chairman and ranking member of the senate

intelligence committee told cnbc they also have concerns about the chinese development. >> the city won't build out infrastructure there until next spring and the mayor of grand forks tells me he's moving ahead with the project in good path and he also says he's still waiting to hear if the federal government has an objection. >> they'll bring in a corn milling plant and a lot of corn in the surrounding wears support the del because they say this is something that you need to build up and they're a bigging a cult, to china and this would be the first time they're opening a plant near north dakota. >> is the corn for export for their chinese customers? it just seems so random. >> it does seem a little random, but there are a lot of people in the community that support it and this has divided this little

community. i talked to one of the people who sold land to the chinese for $2.6 million and he says he's gotten threats from his neighbors and had people putting signs on his yard and there's no clear answer. >> it's not quite like the saudi leak, but reminds me of it >> not quite >> the three-stock lunch, from credit cards to chips to codings. who can rebound? who might not? the picks are next and some you grow to rely on. these are the bonds worth investing in. for over 50 years, pimco has reinvented fixed income to create opportunities for investors in every market environment. so, no matter what happens you can build the bonds that mean the most to you. pimco, a global leader in active fixed income.

welcome back it's time for today's three-stock lunch. as wall street wraps up a chaotic month of trading, we're taking a look at some of the hardest-hit names in the dow this month the hardest is dow inc., down 24%, amex down 18% in june and intel losing 15% this month. let's trade these names with matt nailey. let's start with dow, inc., what do you think >> one of the things about this stock, it's down 25% and rightly so their input costs are going up so that is a concern but just because a stock goes

down 25% doesn't make it cheap all the time but in this case it does it's trading just under seven times earnings it's got a big fat dividend yield of 5.4% so i think it's a stock you can nibble on here they also have plenty of cash flow the dividend is very safe. this is one i want to buy, not aggressively you may have a more aggressive entry point if we get a big washout later in the year but it will pay you to wait while we go through this with the markets. >> so where are you on american express right now? >> american express i'm a little worried about because we see the consumers pulled in their horns. we see the connections on websites and travel websites have come down quite a bit hits on places like open table for restaurants, that's come down 14 or 15% so this is the type of thing that will hurt them. a lot of people like the financials right here but with the flatter yield curve going

towards a recession here, i think it's one i want to hold. it's a cheap stock at 13 times earnings so i don't want to sell it buti want to add to quite yet. >> what about intel, matt? >> intel is one i love on a long-term basis but there's serious headwinds that it's facing but i honestly believe this is one you want to buy a little bit every month for the next year because this is a national security issue this has to succeed. when we talked about this before, some companies are too big to fail. intel is too important not to succeed. we need their chips. we need to make them here. the government is going to make sure that happens so when the next bull market comes along, if you built up a nice base in this stock, you're going to do really, really well. >> continuing our theme of national security into this segment. matt, thank you so much. we appreciate it today. >> thank you. coming up, the semi space struggling this month. could micron' earnings being a

barometer for the rest of the group? we'll look at that next. an 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.

welcome back to "power lunch. in life if you have low expectations, you're less likely to be disappointed that seems to be investors' thinking in tech can micron live up to lower expectations kristina partsinevelos is joining us now. >> i hope i'm not setting the

expectation low and that's why you brought me in. no, chip makers have fallen out of favor on pace for their worst month and micron is no different. its having its worst first half of the year since 1970 the stock is already down 40% year to date and that's why the latest earnings could give investors further sign that the memory chip market is starting to weaken. we have weak demand for consumer electronics. worldwide pc shipments could drop 9.5% this year alone. add on bloated customer inventory levels an that's contributing to a decline in pricing for memory chips many analysts are downbeat because of that dram chips analysts said the market is collapsing and prices have dropped 1.5% from may to june and over 13% year to date. so you've got pricing that is coming down, demand is weakening and freight costs are still

high but micron's ceo has said previously sales for data center products are outpacing its mobile market, so maybe that could continue to help the company this upcoming earnings but there are concerns that customer inventory levels are piling up due to overbuying that happened during the recent supply chain frenzy. so if customers already have this inventory, why buy more chips. analysts predict the industry is on course for an industry correction and why micron's earnings could be the first sign of that happening. >> you talk about demand softening and, kelly, you and i had this discussion yesterday off the air. this recession could be a demand-led recession i've lived through a couple of recessions and they're all different. >> and the data this morning was atlanta fed now has two negative quarters but it's just kind of a quirk. it's because inflation is eating

up all the gains maybe, kristina, the semis could be a cleaner read on where are we in the business psych sglel especially with micron the fact that their quarter ended one month later. the last report for nvidia came out in april so maybe we'll have a little more read on the market. >> one can hope. >> the other theme i detect is retro. all of the stats have been 1960s. it's the worst since 1970, 1962. this feels very vintage, all these stats and that's maybe a little scary but maybe an indication you're feeling for a bottom. >> if only the airlines were like they were in the 1970s and '80s kristina, thank you very much. as we go out, let's get a quick check on markets we were shaping up for a really down session but we regained our footing somewhat some of the defense names outperforming. that's really the only thing you can point to. >> in time of war, everything going on in ukraine, that's maybe a safe harbor in terms of investing. there's no lack of ill will in

this world. >> and yet oil prices and energy prices going the other way so does one have to give it feels like they should both be going up or both be going down eamon, great to have you. >> great being here. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. stocks are falling as we head into the final moments of an ugly first half of the year the most important hour of trading starts now welcome to "closing bell, " i'm jon fortt. well, we've been clawing out of a hole but now the major indices are heading back down. we'll see how far in this final hour the dow is off about 284 points. the s&p down a little shy of 1%. the nasdaq faring worst of all, down 1 sp.2%. let's take a look at the top performing dow stocks in the first half chevron and merck way ou