about it c bitcoin is coming off losses to day. the sender celsius filed for bankruptcy last week we have a special investigation into the company ahead on "power lunch" which begins right now. >> kelly, thank you very much. welcome power lunch. a the ho, hot, hot tuesday hot on the markets and hot probably where you are here's what's ahead. king dollar is the king of all problems this earnings season for many companies, the asent of the green back is eating into profits for multinationals and it goes into all markets and expectations low and some betting subscriber losses will be high. shares down the past three months for netflix a top analyst will tell us if

that is the bottom for that will he beleaguered stocks. the markets are hot, hot, hot. the dow is up more than 2% at 31,740 up 666 points. the s&p 500, up 23.5%. 3927 and nasdaq, king of them all, almost 3% higher, 11,689. on pace to close above the 50-day moving average for the first time since april 7th chip stocks among the best performers in the nasdaq 100 the sma on pace for the first three day win streak since late june and twitter shares trading higher after a delaware court judge granted twitter's request for an expedited trial in its merger litigation with elon musk. somebody there maybe calling it murder, by the way >> exactly, tyler. thank you very much. he mentioned the dollar. let's start with the dollar dilemma. the green back has seen a slight

pull back, it's been trading at the highest levels in 20 years and has become a widely discussed earnings head wind that we're only just starting to really hear about. morgue an stanley says the rally in the dollar translates into an 8% head wind everyone from ibm to microsoft and the commodity complex have all taken hits as a result the j&j cfo summing it up perfectly this morning when asked why they lowered guidance. it's all the strength in dollar. our operation guidance is the same it's the strengthening dollar. so how are different parts of the market handling this we're taking a look at four key sectors and how earnings are impacted from retail to restaurants and travel and commodities. let's start with courtney reagan on the retail space. >> so the more geographic x exposure they, have the less profit u.s. retailer will will

generate after you have that currency translation sourcing products in a nondollar denominated country, that adds further complications. they point out in the latest fiscal years, pdh, nike and ralph lauren generate the majority of the sales internationally. j.p. morgan's matthew vos adds that levi and capri, those are names that generate between 40% and 50% of revenues overseas which, of course, get hurt when the dollar strengthens watch out for the impact there wells fargo, they point out that far fetched generates 79% of revenues internationally and canada goose, 73%. cody and estee lauder are the most vulnerable. and piper sandler's coverage universe and susan anderson points to guess and sketchers as the most exposed with about 60% of revenues outside the u.s now louisiana lemon and columbia

supports wear are correlated to a strong u.s. dollar according to an analysis done by mmorgan stanley. tractor supply, target, home depot, ulta and dollar general has beneficiaries of a strong dollar with most of their operations right here in the u.s. kelly and tyler? >> we would expect, courtney, that maybe they are more insulated than other sectors i mean certainly tech has a higher exposure overall? >> definitely. i think things get complicated with retail, of course, when you're talking about as i mentioned sourcing products and then selling products. then the translation back. there is a lot of complicated exposure mix w we know that not all stocks trade with fundamentals when you can point to a reason that one company is hurt more or less than another so it really is one of those do your home work on individual names here

i think gave you about 20 of them right there so hopefully that helps a little >> thank you very much the focus is on the fad fst foo sector he had winds could mean an 8 to 10 cent drag on the numbers. the impact could mean we end up on the higher range or slightly above. andrew charles said they're looking at 13 cents in terms of the head wind as of right now. he added that operationally, it shouldn't impact mcdonalds as the other names. it buys most of the food locally. yumm brands is another stock to keep in mind it is global than mcdonald's the kfc has more presence in other countries. for both mcdonald's and yum, the u.s. represents 3% of the business two more names to keep an eye on, dominos also has a large international presence

finally, starbucks the international exposure is more concentrated in china and japan. second and third largest markets after the u.s. mcdonald's and yum faring a bit better under 5%. starbucks and dominos over 10% the entire space has just really been hit hard. >> the let me vector you to a place that is a little off point here but what has the closings of restaurants in russia for especially starbucks and mcdonald's meant what will it mean for those names? >> that's definitely something else to watch. they're pretty much completing that process mcdonald's, remember, those are corporate owned restaurants. a little bit different there starbucks also licensed the restaurants overseas so that is another thing to certainly watch. and one more thing i would like to bring up what this means for this quarter that's coming up, the fx headwinds matter. all the analysts i spoke to said it will be a key focal point they're much more concerned about inflation here in the united states and what that means for consumer spending. and you're already starting to

kind of hear from ceos like howard shultz and starbucks saying, you know, the american consumer can't keep spending at the pace that we're at with inflation where it is. i think that's going to be a big focus too. the. >> for sure, kate. thank you. kate rogers. let's turn from restaurants to travel now we're back with a look at that sector >> kelly, the stronger dollar is a boom for americans traveling overseas we have already seen a 27% jump in summer bookings from the u.s. to europe. that's according to hopper ubs analyst says that benefits the big hotel operators like marriott and hilton on average they see cross border travel accounting for 20% of room nights the stronger dollar hits two ways kit also discourage foreigners from traveling to the u.s. and while that departure testing requirement is lifted, international arrivals are down 41% this year compared to 2019 levels the dollar is one of the reasons truest analysts are lowering their estimates for booking

holdings, expedia and air b & b. the sales are converted from euros back in dollars which then brings down the total amount however, the key here is if they can make up the difference in volume, then that could come out ahead. that's why we're watching the bookings numbers internationally so closely >> when we get to levels like euro parody, it has to trigger a volume surge, right, in americans going abroad or maybe not >> no, it absolutely s the numbers i think really tell that story. already a 27% jump in americans bookings to europe that's up from 15 just a couple weeks ago. you're right, it has a psychological impact on how americans think about traveling knowing the euro is one to one with the dollar that, can have an infect on their willingness to go overseas and the whied that they can also spend more and get a better deal on luxury goods that they buy there. >> the all right

thank you very much. let's take now a look at the dollar impact on commodities and we're on that one. >> hey, the u.s. dollar has a strong influence on commodity prices that's because raw materials like oil, copper, wheat and gold all priced in dollars. and so when the dollar strengthens, all the commodities become more expensive for the rest of the world. and that can ultimately reduce demand and drive prices for commodities lower. he noted the strong dollar added about $20 extra to every barrel of oil prices in local currencies so in the last two months, while the dollar has advanced, copper dropped more than 20%. silver is down 14% aluminum down 18%. and gold is down about 7%. meantime, oil and wheat prices also following falling. the dollar is only one factor driving the price action and, of course, russia's war in ukraine, another big factor here but this weakness weighed on

equities they dropped 11% in the last three months the gdx and copx both down more than 30% >> all right thank you very much. pippa stephens reporting on commodities. so what should investors as we dive head first into this earnings season? are there names that look attractive let's bring in managing partner and portfolio manager at dcla. also a cnbc contributor. before we get to some of the segments that we hit on in the dollar impact thing, why don't you talk us through how important the strong dollar is to the market and to profits as we begin to process the numbers this week, next, and the following. >> tyler, no question that the dollar effect is going to affect earnings i do think we have to look at the bigger picture having seen this through many turns on the dollar gets weaker and then what happens to earnings so i think you have to take it with grain of salt

i think fund mentals are going to drive companies i think companies are using this translation effect, sometimes as an excuse to the kitchen sink to say things are slowing and cover it up with foreign currency as well so you really have to be careful. they're going to be company that's will surprise on the upside and say, look, we got hurt by the strong dollar. and investors will see through it because eventually these things kind of come back to the mean the rest of the world starts appreciating currency and we go back that's how we look at it definitely does affect it. but it's fundamentals underneath. >> that's what you want to focus on i really hear you there. dlar the dollar does swing back and forth. companies may use this as an umbrella to protect them from the profit deluge that may be hitting them so let's go to some opportunities that you see here.

delta airlines is doing very, very well. put a big order for lots of new planes on the table yesterday. >> yeah. they did they put in an order for 100 planes if you look back two years ago, the stock is trading lower than it was two years ago two years ago we were in the middle of the pandemic and we had really no line of sight. so right now what is delta telling you? we've had a billion six in cash flow going out four to six months, planes are full. we can't supply any more tickets and we can raise prices and people traveling internationally are going to pay that extra price. i think a company like this trading at a pe that is below the market, that has strong fundamentals and even if things slow down, they're going to have demand far exceeding the supply. if demand slows down, they don't have to increase it is hard enough to increase supply as it is.

>> let's move on to a company that i think is one of the most interesting in the investment banking or the banking area. en that is morgan stanley. and you like it because of the pivot that the ceo made over time towards wealth management, asset management which are steady sort of annuity revenue streams. >> exactly 60% plus of their revenue now comes from the reoccurring revenue wealth management business what does that mean fmorgan stanley? 4% yield just announced that just a couple weeks ago and also only about 20% of their earnings are affected by international. this is a company using the balance sheet really well now. they're not really leveraging their balance sheet in areas that some of the other banks are going to get into trouble. so you are trading at ten times earnings with a reoccurring revenue business and a cash flow that provides a dividend that is

greater than the ten year bond why would you want to own a five-year bond that is making 2.5% when you can own morgan stanley that is committed to the dividend and buying back shares? >> love it thank you very much. appreciate it. always great to see you, sir >> thank you >> you bet >> thank you, tyler. >> coming up, cnbc investigates. former employees of the crypto company celsius which filed for bankruptcy last week are speaking out to cnbc about what they say was a company plagued by risk taking and mismanagement. plus, mosaic, meta and goldman, the best performing stocks in today's best performing sectors which ones should you own? find out in three stock lunch as we head to break, lending club is leading wait with a round of 7% gain. and the global etf up 7% for the month. not shabby

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company's down fall. here is kate rooney with a cautionary tale. >> his career had been about making sure companies followed the rules. so he says he was larmd by conversations at a celsius corporate event in late 2019 >> i was a bit of an odd thing that came up at one of our christmas parties. >> the former director says top executives were talking about deliberate price movements in a sell token it created and used by celsius started to spike in early 2020 >> i don't know a better way to phrase it. they were in the market. they were actively trading and increasing the price of the token. >> based on the conversations, you're saying that management was manipulating the price of the celtssius >> absolutely. >> this echos claims in a lawsuit alleging the company was actively using customer funds to manipulate asset markets to their benefit. market manipulation is a big issue in crypto and one of

multiple issues that employees are speaking out about a former top human resources employee spoke to cnbc about what was a multibillion dollar company. they say the down fall is traced back to one theme. >> the biggest issue is failure of risk management >> they brought in 1.7 million accounts by offering a yield on deposits >> the crypto company and the ceo proudly proclaimed banks are not your friends >> you think of a bank, their job is to extract as much profit out of you as possible >> we reached out directly to him and the company for comment. and have not heard back. celsius was one of a handful of companies to halt withdrawals. >> the compliance team was too small. resources too limited. >> why do you think compliance is so understaffed >> we were sucking out money and not bringing any money back in they didn't want to spend on

compliance >> cnbc obtained dozens of document that's show disorganization. one instance, a top celsius executive writes he is surprised by a document written by another team overseas. he left celsius last summer said the company was trading customer funds. the ceo has denied this on twitter. >> did it seem risky >> yes of. >> he also says celsius was putting them in controversial crypto projects without the compliance team's approval according to this internal document, these investments were clearly labelled as medium or high risk. the state of vermont echoed this in a recent consumer alert saying the company deployed customer as snets a variety of risky and illiquid investments it risk taking is part of the hiring process >> it was a background check >> a former senior member of the human resources team says she wasn't aware of any background checks taking place when she

joined in may of 2021. in fact, she says executives specifically told the chief human resources officer not to background check the incoming chief financial officer. months later, he was arrested and charged with money laundering in connection with his previous company he made an attempt to find oit the status of the case but it does not appear to bpublic in t israeli court system >> everyone was upset he wasn't background checked it wouldn't have brought such embarrassment to the company if that is was a process we had in place. >> she is speaking out on behalf of customers who put their trust in in celsius. >> i feel really bad for people in the community who put money in there with confidence behind this and not only did they lose money because the market volatility but now they can't even get out what they put in to begin with >> in the end, celsius may be just another example of a start yum that grew too fast >> it was just a bunch of mistakes that are ending up very

tragically >> many former celsius employees were paid part of their salary and the company's cryptocurrency, the sell token they put personal funds on the platform they have not heard when or if they'll see their money again. but legal experts say there is no guarantee one section of the terms and conditions it says once someone deposits funds, that cryptocurrency technically belongs to celsius back to you. >> that last phrase is amazing a 17% apy is also amazing. there seems to be a lot of reflags for employees who work there. but why, why, why, was there such a disconnect between the company's public image and what was happening behind the scenes? >> yeah, tyler employees we spoke to said that celsius was really focused on objects. they were really concerned with preserving the company's public image while there may have been turmoil behind the scenes, especially on twitter. they said the company executives really lookeded to shut down any

negative commentary or complaints it was focused on user growth. a lot of startups are. they tract more clients and investors. they have community members. those are basically customers in the eyes of investors. and higher account numbers are seen as a sign of legitimacy one employee said it was closer to $300,000st env he pointed to fake accounts. things that the compliance team would have been charng of in te charge of in terms of shutting down but it may have been an effect of underspending on compliance things like that slipped through the cracks while they were not as focused as compliance looking tie a little bit more risk you did see this massive disconnect between the public image and what is going on behind the scenes. >> that is a really terrific piece. that took a lot of digging, i know thank you very much, kate rooney >> thank you >> we're continuing to watch a big rally on wall street, by the

way. not by the way it is central to the day here right now. almost a 3% jump in nasdaq 2.5% for the s&p 500 the dow lagging behind 2.2% higher but if you take out ibm and johnson & johnson, both of those johnsons, you can add another 70 points to the gain goldman sachs, boeing announcing new orders saying it is seeing strong demand for the 737 max. netflix jumping nearlily 5% ahead of earnings tonight. options are implying a move of nearly 15% we got a preview on netflix, "stranger things" have happened. "power lunch" is back in two

good afternoon here's is your news update at this hour. the agency responsible for maintaining federal government records asked the u.s. secret service to vinvestigate the deletion of text messages on secret service phones from january 5th and january 6th of last year. the request comes nearly a week after the homeland security inspector general told two congressional committees that many messages from it early january had been erased by the

secret service as part of a device replacement program agents were instructed to upload old text messages from the upgrade. in agents did not follow the instructions the chinese government worng that nancy pelosi against traveling to taiwan. the foreign ministry spokesman said if speaker pelosi visits taiwan, it would seriously violate the one china principle. and the possible explosion was reported at the hoover dam this morning. reports began circulating online after a video was posted on twitter showing an area of the dam on fire. officials say there is no longer a fire at the dam. we'll keep you updated there >> all right thank you very much. we appreciate it ahead on "power lunch," two stocks that many people think have already seen the best days. first, netflix reports after the bell sentiment gotten bad enough that netflix can jump over a low bar? options say maybe so

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welcome back, everybody. strong rally this afternoon. we have 90 minutes left in the trading session. i think we know which way this one is going go. we want to get you caught up across stocks, bonds, netflix earnings on deck as soon as we had hit that close let's start with bob on this rally. it got stronger throughout the day. >> one heck of a rally it is broad based. this is what we call a 90% upside day on the volume nice to see that we're breaking out of a trading range. look it at the s&p 500 we've been in this roughly 3700 to 3900 range for a month now. stopped every time we got near here we're breaking out a one month high for the s&p 500 what is helping things couple things. the dollar is down three days in a row. that is the dollar index natural gas is declining we're hearing reports that north stream pipeline coming back on

line partially and the vix is below 25. that's a level a lot of people watch at 25. all the three things helping the markets. we have stocks that were sl essentially at 52-week lows. a lot of them are cyclical names. a lot of the travel stocks, royal caribbean is $31 a few days ago look at this 36 now general mote yards was at a new low a few days ago $30. now look it is heading to 35: $144. i remember when i did a report a week or so ago they ran some of the global industrials hitting new lows a while ago. 43 you see these are all moving to the upside now laggers, it's all of those defensive names. the name you know and love the johnson & johnson, kimberly clark. good sign for the markets. we're getting action in the cyclical sectors

>> absolutely, bob thank you. and now to the bond market we have part of the yield curve still inverted rick santelli welcome back to me, it is really striking we can have this strong a stock market rally with yields still up around 10 year up around 3% it's not like this is happening because everyone thinks the fed is about to cut 75 basis points. >> i know. it really is quite incredible. it is a tale of two different sections of the yield curve. look at a two year note yield. and kelly is talking about the market is hovering but two year note yields are like the s&ps on pace for the highest yield close since the cycle high yield close on the 14th of june which was at 343. now that cycle high at 3.43% on the 14th of june was a 15-year high for the two-year note

yields as you look at that formation, keep it in your mind, let's go to a ten year with the same start date see how the right side of the chart is going lower that didn't show what is going on in the markets. the short maturities are getting ready for the fed meeting next week 75 basis points, maybe 100 i'm leaning 75 and so reflective in the two-year and shorter maturities. now if we continue to monitor everything going on with tens, i would like to point out the only close above 3% for the entire month of july if you watch the end of the cash markets in 5:30 eastern, it was on unemployment friday on the eighth finally, here's the euro versus dollar the last three days three days in a row with higher values and that is up 20-year lows. the dollar index takes a bit of a breath back to you. >> all right thank you very much. let's move to oil now. we also have higher prices after being lower most of the day. wtis at 104. again, this is not denting the

market rally if anything, probably helping the energy space a little bit. it extends yesterday's call about it 5% gain that we did see. of that was the largest percent since may 11th a two day stretch putting us back into the grain. let's move along to netflix which is trading higher ahead of the second quarter results due half the beg analysts are expecting a loss of two million subscribers. the stock is down 67% this year. a senior equity analyst covering entertainment for us, he has a sell rating on $157 price target, the one of the lowest on the street what do you say to those thinking it's gotting to expectations so low now that maybe the stock can rally on these results or at least we meet expectations? >> well, given the condition of the market today, i wouldn't be surprised if we had a reflex move up given the low expectations but i think realistically, even hovering arrange 200, i he mean the stock is still priced for

ample member growth through mid decade i think implicitly priced and getting about $125, well over 300 in the next decade so they really have to show that they do not only apply a turn kit that really generates nice growth on the member side and advertising. >> so would you say you're skepticalst ability to do so in the stock is trading as we said about $40 above where you think it is fairly valued. >> well, i think you really have to look at this on a precash basis. low to single mid cash flow yield. spending more in am programming than they're advertising and you certainly have, you know, more competition, you know, coming very high profile releases in the second half of this year in "the house of the dragon" over hbo max and the lord of the rings prequell i think it's uneven.

i think that the principle driver along with the conditions and such for the consumer. >> how does the strong dollar affect them? that is number one and what will happen to the stock if the forecast of a two million subscriber loss for the second quarter is better than that in other words, half that, let's say? >> a couple weeks ago we felt the street wasn't what the fx, you really have to look at the basket roughly a little over 40% of the revenue is from the u.s. there is some pretty material overseas composure that is not what rattles people's cages there is any outline they have for the advertising strategy if they are short of the two million, i think it will hit the stock when the move is made today. but, yeah, i think people will be really focusing on q-3 and expecting a mildly positive number i think the consensus is around

1.8 million. >> matthew, what would make you more bullish on netflix? >> really seeing a little more magic on the programming side. for spending high teen billions, i think the execution has been really suspect and clearly, you know, looking at the tuesdadvertising strategy they have a high price point relative to the competitors on no advertising so they have to be careful not to cannibalize the as is business and the advertising side i think they'll be agile in doing that they have a lot of good balancing act to do that certainly we're not going to see anything material on advertising until 2023 >> just so i know, it is streaming video on demand. is that right? >> yes sbot is what you're getting right now. and avod is where you have an ad load >> advertising got it >> exactly >> thank you for educating me.

>> all right matthew, thank you so much >> thank you >> we appreciate it. coming up, a working lunch with the ceo of the cloud computing company juniper networks they're trying to fight off amazon who is a customer can you listen to the "power lunch" on the go look for us on your favorite podcast app. follow and listen. space. the boundary of human achievement. the new frontier. ♪♪

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there are lots of questions about how much companies will keep spending on cloud and digit alt transformation this week jon forte introduces us to a ceo in the 5-g era >> yeah. he is the ceo of juniper networks, a company he joined as an engineer out of grad school more than 25 years ago he traces his interest in technology back to his upbringing his palestinian family lived in

l lebanon before they emigrated to canada he was introduced to computing with an ibm p.c. junior. >> i ended up marrying a creative side of me to technology i locked myself in my room for hours and hours, maybe even days on end and just created art on the computer and ultimately that, sort of gave me this belief that i needed to choose a career not just in technology but in computer graphics. the first part of my career, the first company i worked for in canada when i graduated from graduate school at the university of toronto is ati technologies which build graphics processors and now a part of amd. >> and today he is having to think creatively about the networking business. cisco is the biggest name in the space. juniper is gaining share they change what a network is. and there is a new factor. amazon, microsoft, google, the

biggest cloud providers known as hyper scalers are both big customers and potentially big threats. >> practically every provider is a juniper customer today and, yet, these are companies that are packed full of very smart engineers that can do a lot on their own so in some sense, you're always competing with them. you're demonstrating to them that you can keep up with their -- their requirements. demonstrating you can innovate in ways that are difficult to present. so that is how we ultimately succeed. and now that is just one element of our business. we also have a thriving service provider business and enterprise business and the name of the game there really is around innovation. >> those hyper scalers you see them take chips in house and data base in house network wrg they k now juniper's software and related services unit grew 60% in the last

quarter. it's now 20% of revenue. that's one clear sign of how the networking business is changing. no the just about hardware anymore, guys. >> if you were to sum up his career at juniper, what would you say he has done to keep the company fresh and independent? >> well, it's interesting. he's been ceo for only about the past eight years but he spent his career growing there. so it's really been a story of leadership projects, moving into new markets, some stretch assignment that's turned into something bigger and eventually him seeing that he could be the ceo. right now it's really trying to be at that point of leverage where software is taking over the network and therefore the people, namely cisco, who had a big position in the past won't necessarily have a big position in the future. but they got a lot of work to do, a lot of innovating in this time to make that happen and we talked also about how

remote work and hybrid work can sometimes make that team building more challenging. but he's working on it >> he had a front row seat, to you know, the entire computing and internet age, jon. thank you for bringing that to us as they attempt their next act. jon fortt with juniper a big gain for the markets we're raising the gla is to the top performing stock in the top performing sectors our trader weighs in on mosaic, meta and goldman sachs stay with us how's he still playin'? aspercreme arthritis. full prescription-strength. reduces inflammation. don't touch my piano. kick pain in the aspercreme. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. 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.

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it's time for three stock lunch. today we're looking at the best performing stocks in our top performing sectors mosaic for the materials, meta, believe it or not, for communication services, and goldman in the financials. let's trade them with cliff hodge, the chief investment officer at cornerstone wealth. cliff, welcome let's start with mosaic. what would you do with the stock? >> good afternoon, kelly longer term there's no question we'll see a demand increase for fertilizer, especially as we run into disruptions as the world transitions away from globalization and the food and ag supply chains get reshaped. in the short run, though, there's really a lot of

uncertainty and a lot outside of the firm's control especially from a pricing perspective it's a commodity business so they don't have much in the way of pricing power though the vertical integration as relates to phosphate can help with margins more important on the input side, ammonia, is a key input into their products. there's just so much uncertainty right now related to russia/ukraine, nord stream pipeline is coming back on this week so we're not sure we just think there's better places to put capital in these uncertain times. >> and one of them might be meta, is that right? >> that's right. so meta is one of our higher conviction names going into earnings season this year. it's down about 55%, well, before today, from the 52-week highs. trades at 12.5 times next year's

earnings it actually got put into the value bucket so it's not a name that you buy because it's cheap everyone knows it's cheap. but it's a name you buy because it's cheap and because growth is getting ready to accelerate. there's just been very little ad monetization so far and we anticipate that will pick up over the coming quarters we also think that their ai and their algorithms are going to get better at driving content similar to a tiktok or snapchat. so we do think that could lead to an uptick in engagement who knows if it bottomed out. >> do they really have a first mover advantage on the metaverse? >> yeah, i think they have a first mover advantage in the metaverse butreally that's not the thesis for us behind the stock. metaverse is really a much

longer term project. we're talking five to ten years before we see any meaningful results. so we are much more focused on the real story at this point and the metaverse is really more of a side project for now. >> all right let's move on to goldman then, cliff. what do you do with this stock >> we're not a huge fan of financials in general late cycle here with be being elevated their earnings per share was down but that's already in the price so that's why you've seen a really nice reaction post the results. trading revenue, which is typically countercyclical held up really nicely rates, fx, commodities but we do like the fact that they're being aggressive with adding businesses that can add

some diversification and more steady income streams like asset management it's single digit pe, one times book value if you look back historically it's been a great place to take a shot, so goldman is our favorite financial going into the end of the year. >> you would avoid the rest of the space, though? >> yeah, by and large we would especially avoid traditional banks. they have that really high beta to interest rates and especially to the yield curve, which as we all know has flattened out and inverted so really not big fans of your traditional banks in this environment. >> all right but sticking with goldman. cliff, thanks for your time today. we appreciate it >> thank you >> cliff hodge with cornerstone. up next from twitter to gas prices to gm's new ev, the other stories getting our attention this day and a quick look at the markets. a rally still going strong all three major indexes up more than 2% as you see there

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welcome back to "power lunch. something that tesla's shareholders have been hoping for to remove this cloud over the stock. twitter is suing musk to enforce

the $44 billion acquisition. he backed out of the deal earlier this month musk wanted the trial to take place next year. his lawyers argued additional time is needed to review the massive amount of data of spam accounts on the platform but there will be a five-day trial in october. >> i think this is good news this is the most important business court in the country, arguably in the world, and it's good to move this along for all kinds of reasons having to do with this particular deal, but also with other deals and tender offers and pe offers and arbitrage. if you have situations like this cropping up that gum the gears of transactions and it becomes a long, drawn-out thing, that slows that kind of process a lot. >> well, it probably doesn't bode that well for elon musk at this early point but now we'll find out in a couple of months time. >> i love it when the courts move fast. turning to the gas pump where prices continue to fall,

the national average for a gallon is $4.49. that is 16 cents less than a gallon of gas cost last week and far below the record of $5 a gallon back a month or so ago. last year it was just over $3. >> all we'll see is great. did you see what wti did oil is back over $104 a barrel so we'll see how long this can last. >> i expect a lot of up and down going into the end of the year there you see -- well, there's twitter stock that's shown up again but there are the u.s. markets on our board. >> and with gas prices so high, consumers may be considering an electric vehicle for their next purchase general motors revealing a crossover for the 2024 blazer. their fourth model when it arrives next summer. the car starts at $45,000. it's their answer to the tesla model y crossover. it will be made in mexico. musk was tweeting that tesla's are the most madein usa

vehicles. >> don't love the paint job there. apart from that. but to compete in that mid-size suv is a smart move it would seem to me they sell a lot of those sedans. >> i wish they'd sell actual cars with than kind of painting job. make the roads more interesting. thanks for watching "power lunch," everybody. >> "closing bell" right now. see you tomorrow a big boost for the major averages today the dow is up nearly 700 points, near the highs of the day. nasdaq soaring 3%. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand in the market it is broad, this rally. almost every dow stock higher. the two that are lower, ibm and j&j, both getting dipping dinge stronger dollar. s&p up nicely, 2.5%. every sector in the green. the leader is industrials along with communication services and financials