congestion and corridors and airports >> they're blaming the faa for certain things and the pilots are retiring and a lot of back and forth right now and we still saw a lot of cancellations and delays this weekend. we'll leave it there thanks so much we appreciate it our phil lebeau. that does it for "the exchange," everybody. "power lunch" begins right now welcome to "power lunch. i'm dominic chu in for tyler matheson today and here's what's ahead, biotech bounce. the sector, one of the most hated on wall street to start the year is now going gang busters on a relative basis, up 26% since mid-june alone with m & a activity heating up is the sector investable yet again? plus an entertainment power player the ceo of live nation is here to discuss whether the concert ticket business is inflation proof and how long he sees consumer demand remaining strong for those live events.

kelly, we've got a very big hour ahead. over to you. >> looking forward to it, dom. welcome. hi, everybody. let's get a check on the markets which are green once again the dow off its session highs up 1% and the s&p up 1.4% and the nasdaq up 2.2% or 250 points, the small caps are even the strongest performer. chip stocks are getting a lift after samsung's profit and revenue surge that has all of the etf higher and that's around 208, up nearly 5% on taiwan semi all seeing gains from almost semi for 10% and check on the yield on the ten year which is back above 3% by just a hair and within the past hour, fed governor chris waller making some comments about inflation and continuing to say maybe he wants those front-loaded rate hikes. let's get right to steve liesman for all of the details steve? >> front loaded is the perfect phrase, kelly. in the past hour, the fed

president saying it needs to get to a much more restrictive setting and he favors 75 basis points at the july meeting and moving on to 50 in september he says recession fears are overblown because the job market remains strong and that is a good shot at a soft landing. the important one is the fed can flatten out rate increases once the fed gets to neutral and it's that last comment echoed in the minutes yesterday which holds out hope that if inflation is brought under control that the fed won't have as much work to do next year take a look here, the minutes said after the fed is neutral and the committee would then be well positioned to determine the appropriate pace of further policy affirmsing and warranty policy adjustments peter williams at evercore isi wrote, the silver lining for risk assets is that the committee underscored that as

the policy gets to the vicinity of neutral it becomes more important again. it is now priced around 3.38. it is now price at 3.40, so a big decline there. here's the hope that the fed stops there because it eases in a slowdown and not a recession and we'll talk about it tomorrow with rafael bostock on "squawk box. >> excellent looking forward to that, steve thank you very much. buckle up for a long recession. he says the pmi will not bottom and that is a year ahead let's bring in michael with piper sandler. you've been so consistent on this theme and correct that the economy is slowing, but why do you see it getting worse from here instead of stabilizing or resetting at what's still a growing level >> sure.

thanks for having me, kelly. good to see you. >> the reason -- the business cycle is something that doesn't change over time and the reason we have the ebb and flow of the cycle and we r recessions and recoveries is all about the cost of money and the cost of goods going down and things like interest rates and oil prices are the most obvious drivers of the cycle and we still have the fed raising rates and we still have very high oil prices and we still have now banks that are beginning to tighten lending standards, and so we're not even done with the tightening phase of the cycle so you can't really begin to talk about the beginning of the recovery until that's over there's a long lead between changes in policies and how long it takes to respond in earnings and employment and that's why you keep hearing people say employment is still good well, yeah, it's a lagging indicator. it will take several more months before we begin to see the impact of what the fed has done on employment. so there's a long road ahead and

history very much suggest -- points that out with clarity >> let's talk about some of the stocks that you would both buy and sell here kind of on this point of view because you're short a lot of the highly cyclical names dupont, alcoa and even kkr and things like that, and you're still long some names that people might be surprised to hear like autozone, dollar general, costco and northrop grumman. can you dig into that a little bit? >> sure. there are two problems that the market is facing one is getting incrementally better which is inflation, but it's incrementally better and the other is getting incrementally worse, which is the odds of recession, earnings growth and the speed of the economy. so what we want to be avoiding until we see a bottom in leading economic indicators which is not until next year are stocks that are sensitive to macro data like the ism or unemployment claims

or credit spreads. so the four stocks you mentioned, dupont, alcoa, kkr and active, they all have correlations of the relative performance of 70% to 80% of the ism. so if the ism will continue falling next year, which we do, you're swimming upstream from a macro perspective owning those names. in addition to that, these companies rank in the sell model. so it's a combination of the bad macro environment for these types of names and they have a poor sell model. on the other side of things, we just want the opposite which stocks have correlations that are negative to a slowing economy. in other words, we'll do better as the economy goes down and have good fundamentals and costco,dollar general and northrop grumman and they have the fundamentals that investors gravitate toward such as high

profitability and earnings growth >> michael, it's dom i wonder what you think of or what your read is on the late outperformance that we've seen in the last couple of weeks in those mega-cap technology names, some of those unprofitable tech names that did so well over the course of the last couple of years. it seems as though we've kind of gotten away and rotated out of -- rotate is a big word we moved out of the metals and gas trade, the commodity trade and we've now gone back into seemingly the apples, alphabets and movicrosofts of the world ad the etsys and do you think that's a headfake or do you think it is a rotation in play right now? >> no, the rotation is absolutely in play and it's been going on in the russell 2000 indices in value and it's happening because we're seeing the transition away from inflation fears and toward growth or recession fears.

so as that happens, interest rates peak and commodities come down as part that's the story for the underperformance of value stocks and cyclicals and the beneficiaries of that, especially lower inflation and interest rates peaking, are the stocks that got hit the most from that. large-cap tech with growth in general has been benefiting from people believing that the fed is not going to go as far as they thought earlier this year with the ten-year holding in here around 3% and the stocks where you're starting to see downward earnings revisions where the worst are those cyclical area of the market so it's happening because inflation fears are transitioning interest growth fears and that's the story for the next 12 months we do think there's upside for quality growth stocks, but i wouldn't lhang on to those that don't earn a profit for too long and those tend to do poorly when

job losses start to accelerate >> michael kantrowitz. our next guest says they should focus cash flow with bigger potential down the road. let's go value hunting with who else, but sarat sethi, often seen on the halftime report and a stock picker he does it for a living. let's talk about the names we heard. michael talked about some of the names on his list. do you feel like there are still opportunities for growth out there or are you still focused on that value side of the equation >> i think it's a combination, dom. you have to look at value stocks because some of them are cheap and then growth at a reasonable price has come down, as well i'm not a firm believer in the price to sales model, i do think you have a combination where

you've had a value portfolio and we've been saying that for a while, and i do think cash flow will matter and long tail assets are going to matter and that's where you want to put your capital these days >> where is that where can you find that on the names you track more slowly. where is that? >> take a company like morgan stanley. they just came out and had their stress test. they increased their diffe dend you will go 4% dividend yield on the high cash flow liquid company and 60% of the revenue is wealth management they don't have credit issues and they're not levered to the consumer and you look at the capital markets they don't use their balance sheet and they're really, with the two acquisitions that they've made over the last couple of years, it is a recurring revenue model and with even a slight uptick in interest rates that falls to the bottom line and it is trading at

a big discount to the s&p, as well. >> you have earnings, and you have a host of analysts on wall street taking down their expectations for many of these big bank-type stocks and i can see being contrarian in that mind do you see the sectors like industrials and cyclicals that you still find the value that is compelling >> one is the ge, and he ran danaher one of the best companies out there. if you break up ge into the sum of the part and of a yagdz, power, renewals and now it's a wait and see story what larry is doing getting wall street ready for the breakup over the next two years and you will have spin-off, and power renewal spunoff and the aviation which is the crown jewel, 60% of all of the flights in the world come from ge engines and you're

seeing that demand and this is something that you were talking about airlines before and if you're looking at solar parts and its eight time zone, with you want to break it up there you this unlove story. sarat, what do you make of the recycle and business, and one thinks this is a needed and necessary slowing of inflation, primarily. it is not a recession, that's the more bullish camp. the more bearish camp is the scenario that he described this could be a year plus of kind of the cycle rolling over where do you fall? >> i fall kind of in between there. i think things are slowing down. there's no question about it you have housing slowing down and the consumer slowing down. you have interest rates going up all of that is ng and we might actually be in a slowdown, but recession is not that bad a

word it's a slowdown from a very heated economy where we had so much liquidity thrown into the system the markets as we know and if you look back at 2020 and 2008, they're discounting 12 to 18 months in advance. i do think that if we're getting close to the bottom in cyclical stocks, it's impossible to time it and the stocks will start re-rating when stocks go up. there's no question that the multiples have contracted and the future which is so hard to tell because if you do get, oil's coming down below 100 and the fed will increase and not at the same rate and you see the light at the end of the tunnel and it will be too late to come into the cyclical stocks at some point because they'll be reflecting an earnings growth that is not in the multiples today. >> sarat, thank you. we appreciate it some stocks and his view on the cycle. sarat sethi. >> the bounceback 26% since

mid-june and still off the highs and with merck in advanced talks to buy seagen, which companies could be the next breakout targets? and the companies with the dollar, what about the beneficiaries of it. three stocks, three trades in today's three-stock lunch. let's check on shares of bev yond meat now extending their gains of 28% for the past week and a weekly gain with an 8% bounce we're back in a moment like jack. he wanted a streamlined version gain with an 8% bounce we're back in a moment of 28% foa weekly gain with an 8% bounce. we're back in a moment 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 to "power lunch. shares of merck are down today, big pharma has outperformed the markets this year. merck is up more than 20%, up more than 20%. pfizer is lower, but better than the broader market overall and you compare that to the biotech overall, and the etf is still lower by 25% over this year. investors seemingly liking those bigger, safer dividend-paying pharma drug-related names, but could that be about to change? bertha coombs joins us now with a look at big biotech and the turnaround there bertha >> dom, call it the stealth rally. biotech has, of course, taken a pounding this year as investors turned away from speculative stocks, but take a look at the big shift we've seen since june. the small-cap loaded s&p biotech etf ticker x pi has roared

higher throw still deep in bear market territory, the xpi is up 35% from the may low and while the i shares and the ibb is up 20% from its june low with both trading back above their 50-day moving averages. part of it may be seasonal analysts at web bush say biotech usually outperforms in summer up about 5% on average between june and august, better than the s&p, but they're also seeing analysts' momentum today's big gainer small caps and cti and biopharma with analysts raising earnings target as it launches a new bone marrow treatment kovanjo they're seeing stocks outperform and they're seeing upward analyst provisions mizuho analysts see about a quarter of biotech's holding or getting acquired this year and not necessarily for a big pay

day. let's take a look at meridian biosciences and it's agreed to be taken private for just over 1.5 billion, but kelly, that is no premium to its current market cap. again, it's had a big run, but you kind of think there mietd be a bit of a premium we're about to talk about takeout plays and you might not get it although nothing will make me feel as hopeful as saying bone marrow, cancer treatment in the works and a reminder of the positives that are going on, take out premium or not thank you. our bertha coombs. according to the m and a waive jaret, what do you make of that last point being there, they're not taking a break out premium i think we have to look at these situations kind of in a unique

aspect vevo was going up a lot and there was a takeout premium and all of these are unique situations we've seen deals with massive premiums we've seen deals with very little premium and it is very company-specific, i think. >> all right let's get company-specific, where are you looking at possible candidates and i know it's hard to make waves. do you see a deal-making wave coming, by the way >> i think so. we've looked at this entire sector we look at it every day, and you know, westarted the year with approximately 850 individual companies roughly in biotech that were either really sorted all of the way from large cap to microcap based on, you know, a wide variety of inputs, and what we were seeing now is a little bit of a flurry of activity, but it's very inconsistent in terms of the type of companies that are actually getting acquired. we've seen small caps and if

this merck for seagen winds of happening which i think most investors i believe will be the case given the ongoing headlines then we'll see the biggest deal this we've seen in a number of years, you know, kind of trumping alex onfrom ion from a of years ago and what could be the next takeover target because the list of companies that have been acquire recently is just very diverse. >> jared, it's dom one of the things that i think caught at least my eye about this is the size of the deal, no doubt. if it were to happen and if the reporting is true, but also the fact that this is a company that very, very high-profile wise specializes in a very specific kind of treatment and that's oncology it's cancer. it's been that way for years now, many of these acquisition targets are to shore up mega-cap farm as and pipelines for drugs specifically in oncology

is that something where investors remain focused strictly on the cancer side of the business or are there other places you go through to look for possibly some of those deals to happen, just cancer or not. >> dominic, it's a great question i think for merck, specifically, just given some concentrated they are in oncology and the expertise in the area. it's just natural that they were kind of going in this direction, i think. i think that's the way most investors look at it, too. a core competency in a very, very large category within therapeutics this is why i think most analysts believe that seagen is logical among others oncology as a therapeutic category more broadly, i think it is very case specific and dependent on the buyer and where their focus is so we've spent a lot of time in trying to direction of m & a as

it is in biotech and it is very, very fast. >> when you look at this spectrum of countries and what they can do. you can almost argue that the vast majority of therapeutic company it is within the xbi or the ivb have some sort of exposure to oncology so it's a huge area and that kind of makes it pretty topical for most buyers. >> all right jared holz over at oppenheimer we appreciate your thoughts on biotech there. ahead on "power lunch. top dollar plays we'll lay out stocks benefiting, yes, benefiting from the strong u.s. dollar and our trader will tell you whether to buy or sell in today's big three-stock lunch. plus jobs in focus, of course, ahead of that big tomorrow's employment report tomorrow we will highlight a growing employee training program in today's working lunch segment, as well. so work is a theme here. johns are a theme here

we'll be right back after a break.

lemons, lemons, lemons. the world is so full of lemons. when you become an expedia member, you can instantly start saving on your travels. so you can go and see all those lemons, for less. let's get a check on the mean stocks because they are all higher today and strongly so led by bed bath & beyond shares.

gamestop higher on an announced stock split, 4 for 1 and amc up 16% bucking a notethat cut their price target and reiterated a sell reiting. those so-called meme stocks up strongly right now let's get out to bertha coombs for the cnbc news update good afternoon, bertha. >> thanks, dom here's your cnbc news update at this hour. film legend james caan has passed away. his cause of death was not immediately released caan was 82. florida governor ron desantis is planning a private fund-raiser in utah later this month hoping to attract some of the country's wealthiest republican donors the event's location noticeably not in his home state could mean aspiration for national office a historic seizure of more than half ton of fentanyl at a

warehouse in the northern city of culiacan. it has an estimated street value of $230 million and is said to be a hundred times more potent than morphine. and there's a new dominant omicron sub variant in the u.s., so-called ba.5, accounted for nearly 54% of the country's covid cases as of saturday ba.5 appears to evade protection from both vaccines and previous infects more easily than its predecessors, but guys, you know, that's a lot of folks who are testing officially a lot of folks are just tested at home so you don't know which strain you have. >> i just found out i have antibodies and now my hopes are dashed thank you, bertha coombs. with covid restrictions lifted, live events are coming back and they're not trickling to the event stocks. live nation down 30% and this is

exactly what we were talking about with the casinos a moment ago. we will speak with live nation's ceo next

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lunch. 90 minutes left in the trading day and we want to get you caught up on the markets, stocks, bonds, commodities overall and plus a check on the return of live events later on this summer. let's begin with a check on the markets. all of the averages, by the way, are higher with the nasdaq leading the way markedly so. this would be the fourth straight gain for the nasdaq up more than 5% in just the past week chip names are making some of the biggest moves. samsung out with its results in korea overnight and some positive signs there about the health of the industry maybe, and then we want to show you the rebound in some of the hard-hit stocks like affirm, like crocs, moderna and beyond meat up at least 15% in a week and all of those still down 30% so far this year 75% declines for affirm overall. so keep an eye on those stocks turning now to bonds, yields are moving higher today, but the ten-year note yield remaining inverted with the two-year our rick santelli is in chicago

for us to go through all of those details. rick, the fixed income market is very much a fixation with the big fixation narrative floating around. >> it absolutely is. the only thing that is in keeping par with the recession are interest rates themselves. we both know that two-year and ten-year dabbled very close about three weeks ago on an intraday basis with 3.5%, but as we look at the two day of twos and we've taken off and going into the jobs number two step and we always seem to sell off pushing yields up, no exception and look at the two-day of tens and about 25 basis points, low to high and it has been a rather big move especially considering that at 235,000 as kelly was referencing earlier, we're basically at a six-month high on initial claims even though the numbers are small. it's a very flat line that goes from slightly under 230,000 to

235,000 and even though historically they're low, the market avoided that. as a matter of fact, as you look at a five-year break, even, right now it's under 2.60 and 2.6% and it's the lowest it's been since september of last year and if you look at the crb index it's the lowest since february of this year which is painting quite an interesting picture going into tomorrow's jobs report because most likely jobs are slowing, but exactly how much and after jolts being still at a lofty 11 million plus it will be an important number in the morning one thing that's been on a tear of late is the dollar index. as you see here it is on pace for another fresh high close going back to 2002 which means the euro currency which is about 58% of the dollar index is also on its way to a fresh 20-year low against the greenback. dom, back to you >> traders jockeying for position ahead of the big jobs

report rick santelli in chicago, thank you for that oil is bouncing back in a big way today after a big drop yesterday and still up 13% in just a month and let's get out to pippa stephens. >> i'm starting to get whiplash from these commodity moves and oil is back above 100 bucks after settling yesterday at the lowest in three months and natural gas surging 13% and you can see the big move there at 11:00 a.m. and that's when the latest inventory report dropped showing a lower than expected build, evw analytics adding that on a technical basis nat gas was near oversold levels and despite this jump, still down more than 30% in the last month and turning to gasoline futures and also on the move up 5.7% today, still in the red for the week. so we could continue to see some relief at the pump, but a lot does depend on the direction of

oil. finally, energy stocks jumping apa, the top performer was marathon oil and diamondback also on the move and new energy in the green, as well and the invesco held clear energy fund and the ticker pbw up 11% with solar up 5% led by genco solar >> pippa stephens, thank you very much for that. many are attending a concert for the first time in years. julia boorstin is live in sun valley with the ceo of live nation to talk about whether that trend could continue. julia, i want to hear all about it can we still go to concerts and are they a big thing this year >> well, you can certainly go to concerts and we will be talking about that now with live nation's ceo, reichal rapmichae rapinoe joining us from sun

valley we hear about recession risks and about the help -- [ no audio ] >> we'll go back out to that interview in just a moment there with julia in sun valley and bring you up to speed with the latest that's happening at live nation also coming up, this week's working lunch, john ford brings us his interview with the ceo of corestera. >> it's getting close. >> it's at my house. >> the trapperkeeper and everything. lchoxes >> your little

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let's get back out to sun valley where our julia boorstin is sitting down with the ceo of live nation. julia? >> thanks so much, kelly that's right i am here with michael rapino. michael, we were talking about what you were seeing in terms of the health of consumer spending. you have a global view of what's going on right now in terms of ticket sales are you seeing recessionary trends >> you know, we're not we've had such pent-up demand both in europe, america,

australia. we are headed for a record year right now, as of this weekend. i checked all our latest data. people are showing up. 90% rates. our ticket sales are double digits over 2019 and the one factor we like to see is what are they spending on site and those are up 25% since 2019 which was a record year. >> and that spending on tickets or spending onna an sillries >> having a beer or a hot dog. do you see a pullback with that? record levels when they're coming there to have fun, drinking, enjoying the night. >> we're hearing a lot about ticket prices being on the rise. >> obviously, we talked a lot about inflation and gas prices being high can consumer absorb these higher prices for tickets if they're paying so much for everything else >> yeah. there's always the top-end ticket to gets the press a ticket and a concert ticket is still affordable average price is $35 you can't have a dinner for that

or go to a laker game. of all entertainment options, it's affordable. the artist starts to participate in the pricing dynamic versus the secondary market you look today the market is still hot on the secondary business which would indicate pricing still is below market, but we still believe that the artists should gather more of the up-front costs and we also think making it affordable is right. >> it seems there's a lot of pent-up demand and a lot of conce concerts and pent-up demand and once you digest the pent-up demand, do you think concert going will continue at pre-covid levels or do you think it will drop down below that >> we are looking at 85 tours booked and that would put us on another record year. so we think that overall historically, concerts are an 588% to 9% growth business. we don't think there will be an

air pocket and we think we'll be on the growth business like the last 30 years. i'm sorry we have to leave it there and we know you just renewed your contract and we hope you will come back and talk to us after earnings michael rapino, thank you for joining us back to you. >> that's what i heard, record, record, thank you very much. workers need to acquire new skills to stay relevant and jon ford brings us with a public company with ed tech, education technology. >> that's right. jeff majian, the ceo of corcera. ad tech companies are having a difficult few quarters since demand for classes tend to be weaker when jobs are plentiful, but jeff is sticking to the long-term vision with the financial engines where he was the founding ceo that company almost failed in the dotcom bust. in fact, close friends advised

him to quit. >> every year, a couple of friends and i go to vegas and we're very hon effort with even other. we're good friends and mess around, but we're honest, too. we are honest with each other and we love each other and support each other and in that support, they said, jeff, you're the definition of the living dead you will not give up, but you're not going anywhere you are too talented to just ride this dead horse i don't know how mixed metaphors i can put out, but they were, like -- they said it's really nice to keep trying, but at some point your next employer will question your business judgment. if you stay in this dying opportunity people will say you just have lost all judgment. so i still didn't give up, but there is a down side of being too persistent and sticking with something for too long and maybe i was past that point, but it ended up working out >> it did work out and he didn't give up and the financial engine

went public and it was acquired for $3 million and today he's working on education and not finance. it's possible for people to learn digital skills and he's trying to position coursera as a low-cost way to level up >> we've been work working with mackenzie to identify jobs that don't require a college degree or any priorwork experience that can be done online and the skills can be done online and mackenzie's estimate is 75 or so of these entry-level jobs are there, if you can get skilled for them and generally speaking, you know, they pay pretty well and even the 20 professionals that we have on coursera is 1.6 million job openings today in the u.s so there's definitely a lot of job opportunity for people with the skills and you can learn the skills online. >> tomorrow's job's report will give us insight into next

month's labor market and it will depend in part of whether there are enough trained people, and trying to figure out the right models to teach people quickly and remotely >> in many ways, we are still in the early days of online learning and just today "the wall wall street journal" had a feature piece to provide online courses that are not up to their standards standards and leaving customers feeling a little burned. there seems to be opportunity for just remote work, remote learning and there is more still to come. >> degrees business which they work directly with the universities to bring their caliber of class into a digital environment which increasingly is also what stundents are demanding. the professors want them in class and students don't want to come to class. how do you meet them in the middle. >> another headline we see all of the time approaching jobs friday is the number of job

openings for every unemployed american two of them right now roughry and you talk about the idea that you can't make that comparison because that's a skills gap and the whole idea is to close the skills gap because you can do your training on your own schedule and your own free time and you can find that skill set that gets you the higher-paying job. is this a bigger picture, macro theme that you think coursera will go after in the next few years, closing that skills gap >> it is, but it will take policy if you will learn online, you need a home and housing is increasingly expensive and you need a broadband connection so that costs money in an inflationary environment where housing is scarce and all of these pressures, how important is it for different governments and they operate coursera outside of the u.s., of course, as well. how important is it to create the workforce of the future and where policy needs to be in place to enable it, still not free >> nothing is more annoying than in the middle of the important

point and the video bleeps out we know what that's like >> sorry live nation >> exactly john, thank you very much. our jon ford coming up on the show, the green machine. a strong dollar can be a huge boost to some domestic stocks. we'll lay out which ones you should buy or sell that's coming up next in our three-stock lunch. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna.

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from watching you, by downloading the app today. duckduckgo: privacy, simplified. welcome back to "power lulu lunch. time for today's three-stock lunch. we are looking at some of the stocks that could potentially benefit, diamond back, southwest airlines, ulta are all on that list all three get more than 80% of their total revenues from within the domestic united states have projected revenue growth of more than 10% this year, are beating the market in 2022, and have a buy rating from a majority of analysts that cover them so all of those factors, those criteria are met with these three stocks let's bring in scott nations, president and chief investment officer of nations indexes so maybe we'll start, scott, with this diamond back energy

trade. is this one you'd be a buyer or seller given the headwinds or tailwinds you see? >> i'd be a buyer of diamondback. even though it's 28% below it's 52-week high, now that crude oil is rebounding, it's 5% today, back above $100 a barrel, that's great news for someone like can i modiamondback. energy is still insanely expensive. let's look at some of the technicals the one i like to pay attention to is relative strength index. even though i'm a buyer of diamondback, we can buy it at a relative discounting rsi of 38 but the expected eps for current year for diamondback, $25.15 a share. for a talk that's trading at 116. so we're talking a single-digit

pe ratio we know that won't continue but energy will be insanely profitable for the next couple of years. >> all right so you're a buyer. what about southwest >> southwest is a very different animal you know, they're hurt by the fact that energy prices are so much higher, even though they're the best in the business when it comes to hedging they're only about a third below their 52-week high so have not been hurt that badly every airline is being killed by capacity constraints we saw more people going through security in the united states, airport security in the united states on the 1st of july than they did the 1st of july in 2019 so we're all trying to fly now on friday, 29% of love's southwest flights were delayed so they have a real problem as far as capacity. it's the best name in the airline space so i don't want to be a buyer if i did have a loss in southwest, i would be harvesting that loss.

i would be harvesting it i would be waiting well more than 30 days to make certain we don't have a problem with wash sale but then i would re-evaluate. if i want to get back in the stock if i still liked it, then i would be a buyer but right now i think it's a sell for tax reasons. >> and the last one here is ulta beauty we're talking retail for personal care, cosmetics, perfumes and colognes and that sort of thing. we're getting out more and want to be more social post-pandemic. is ulta beauty you'd want to buy? it's down 7% in 2022. >> it got killed this company is a great story, a great niche, great brand, but it got killed in august of 2019, well before the pandemic because of some really disappointing guidance at the bottom of the pandemic low it was down 60%. this whole -- this all started with eps disappointment it's now bounced back all the way and made a new all-time high but the

problem is inflation -- the stores and the products are seen as a luxury. i think they're going to have a really tough time with inflation. they may endi up being the firs thing people cut i love the story, i love the brand but it's not time to be long ulta and i would be a seller. >> scott nations, nations indexes, thank you very much, sir. have a good day. >> thanks. >> so much forol dlar beneficiaries, i guess we'll be right back on "power lunch. 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,

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welcome back some breaking news a verdict in the trial of former theranos coo steve kovach has the news. >> sonny is guilty on all 12 counts of fraud, fraud against patients and investors of theranos he is up to 20 years sentence when his sentencing comes. you'll remember in january elizabeth holmes was found guilty on just four counts, but all related to fraud against investors. none of the counts for fraud against patients, she was found not guilty on all of those but in thises say sonny balwani found guilty on all counts against patients and investors. >> steve, you've been following this for a while we go back to the 2017, 2018 range when some of these investigations started to come outabout the viability or

actual use of theranos' products so you look at the counts that were then found guilty on for both of them does it in your mindi kind of imply that the jury or the american public buys this notion that elizabeth holmes was saying that she was manipulated in some ways, that there was a puppet master in all of this in sonny balwani? does this mean that story is true in the mind of the people reaching the verdict >> in the mind of the jury, they were both guilty in the elizabeth holmes trial, she was trying to throw sonny balwani under the bus. remember, they were romantic partners for much of the time they were running the company together she made claims of sexual abuse. but he was foundi guilty on all

counts and she was found guilty on four of the counts. >> who knows, this could still go on. >> sentencing remains a major discussion point steve, thank you markets at session highs thanks for watching "power lunch. "closing bell" with sara eisen starts right now thank you, dom and kelly welcome to "closing bell." watch the s&p 500 in this final hour, near the highs of the session. if it does manage to close higher, that will match its longest winning streak of the year the most important hour of trading starts now take a look at where we standing in the market right now. there's the s&p up 1.5%. best performing sector is energy the nasdaq is also doing well, up 2.25% so technology continues its rebound. yes, july around this period is usually seasonally strong, but increasing signs that inflation is easing playing into the narrative here small caps