hbo max. just this morning we got news of cross pollination with the company announcing it's putting chip and joanna gaines discovery content on hbo max and cnn contact on discoveryplus another thing they want an update on is cost-cutting and last quarter the company estimated $3 billion in costs and we're seeing examples of that including shelving "bat girl" which cost an estimated $90 million to produce an advanced test screening fell flat with fans and there is, of course, an accounting benefit to taking a writedown jon? >> julia, thank you. that will do it for "the exchange." i'm join courtney reagan on "power lunch" which starts right now. ♪ ♪ come on over, jon. welcome to "power lunch. i'm courtney reagan along with

jon ford and he'll join us in just a second. we are less than 24 hours away from a huge jobs report for the markets and everyone wants to know the real state of the economy. we hear from two ceos on what they're seeing on inflation ask the supply chain and especially the consumer and the summer of 2022 was supposed to be when we all started getting back out there, but results from travel companies have disappointed the markets and now expedia is on deck and we'll get into that and more, but first, let's get over to jon he's got a check on the markets for us. >> hey, i took a little walk thanks, court me the losses are small walmart is the worst performer on the dow the company announcing job cuts, laying off hundreds of corporate workers as part of a restructuring. last week walmart lowered its profit forecast. remember that. energy is the weakest sector today as oil falls below 90 bucks a barrel coming up, we'll look at how that's affecting gas prices and check out coinbase

coinbase, yeah still up more than 11%, partnering with black rock on ways to make it easier for institutional investors to trade bitcoin. well off the highs of the day. coinbase has doubled since july and still down 60% for the year. >> bitcoin, jon, i know we'll talk about that. some would argue that the market once growth stocks, no, earnings and cash flow, that matters more than ever. so let's go value hunting with sarat sethi and he's also a cnbc contributor. why does the thesis mack sense for you that value is just better than growth in this market >> given the uncertainty of where interest rates are going to be, cash flow is very important, and i think investors will look at companies especially when you look at discount rates and the rates will go up and you want more certainty. we've had so much volatility over the last six months to a

year if you can find companies that are undervalued at good cash flow promoting solid balance sheets and a growing dividend, if you get anything from a 5% to 7% earnings growth with 3% to 5%, you are looking at 10% and 10% of this market is pretty good >> what would you consider good cash flow right now? >> let me give you an example of steelcase, why would we have that as office furniture, but we're looking at a company that is pre-pandemic levels and inflationary pressure and the new hybrid so demand is there and they're raising rises and the stock trades at nine times earnings as a 5.5% dividend yield and they expect earnings to grow anywhere from 10% so if you have that for the next three to five years, you're looking than a higher than 12%

return with the company that has the wind at its back. >> i have to admit i was surprised, with the potential of hybrid being more permanent. what about edison international, a utility stock. >> the utilities have done well and they're 60 times earnings and they're not in the generation part. so they have the ability because of reg let reasonings to know what their earnings are and they're anywhere from 6% to 7% and they're close to a dividend yield and the market that is not giving investors too much, and it's been almost four years and investors are penalizing edison because they're responsible for that and they're working with california and much more green

than they were before and here's a company that is in a good space. >> sarat, i want to go back to steelcase. office furniture, we have ethan allen coming up in just a cup overall minutes. furniture all over the place seems to be doing well, but how durable is that? is that perhaps an aftershock of the pandemic and some need new furniture, but not over a long period of time. >> what we're looking at is the remodel and companies are coming back and we'll talk to other clients and they say look, the office of the past will be different from the office of the future so what do we need to do that? do we need more places where people can do zoom calls all of that requires different type of furniture and furniture not just in the office, but the home office. people say i'll spend one, two, whatever it is at my home, my second home and all of that will be demand that wasn't there before and it's incremental new

demand that will be occurring in nature >> okay. i can see that sarat sethi, thank you >> thank you >> it was supposed to be the summer of travel after two years of covid restrictions and some are suggesting that travel season is over they're reporting bookings that were not good as forecast. travel stocks slumping with a ai airbnb down the bet20% or more expedia down and joining us now is jed kelly, senior analyst at oppenheimer. why? i understand the pent-up demand for travel, but there are signs that the consumer is getting tapped out with the rate coming down, and credit going up. will they keep traveling >> yeah. i think what we've seen, right, is inflationary pressures right now aren't affecting the affluent consumer and what we think will happen next year is

if we did go into recession they'll travel and they'll probably go to a cheaper hotel and our view on booking being able to resemble the recession and they were able to gain share and the aggregators with supply such as booking will get more traffic to their site on comparison shopping and booking is strong as a strong balance sheet which allowed them to buy back stock and they have strong marketing efficiency, so that's our call >> so there will be demand for travel will the supply hold up and by supply i'm mainly thinking about the airlines, many of which are cutting lines and will that have a trickledown effect on the bookings of the world? >> we think it will happen next year, right, when the airlines are able to train their staff, when they'll look at the fall and say they should have more employees and more people will be up to speed on training we think they'll be able to

handle their capacity issues and you listen to what the major u.s. airlines said, they're calling for a 15% increase in capacity next year and we think that bodes well in terms of us not having enough employees to meet demand and it was interesting with booking unlike airbnb and they didn't call it out and they said the second half of july was better and they haven't seen the impact that airbnb had with airlines i believe that's in your coverage universe. some highlights and certainly some low lights and what to you think of the long term potential for airbnb for how we travel and how they live. >> oh, they're executing here more than ever buzz it's the valuation and it trades at 23 times or next year's ebitda and we see a risk of a multiple

compression and airbnb and what you typically see is we think they'll getmore supplies as well and more people running out their second homes or more people renting out their homes to gain more income, right you've got to remember airbnb was founded out of the '08-'09 recession. so we think they bode well especially and we think airbnb will get an uplift of more u.s. citizens traveling abroad to europe next year >> and that was the thread i wanted to pull on next as we think about what's going on internationally. i know a lot of the retailers that i cover, we haven't seen the pick up in international travel and not quite to the levels and the restrictions and the ability for citizens to travel and cl would be most at risk and which would be in the positive seat to benefit as

international travel begins to return >> well, it's mixed, right i would say this, booking has the most exposure to europe. expedia stands to benefit the most from long haul international travel from u.s. citizens going to europe so expedia we expect some uplift and the airbnb will be part mixed and they'll have equal penetration in the europe and the u.s., i think it goes expedia, airbnb and booking. the strong dollar play is expedia and people in the luxury segment want their dollars to going for thor, expedia would have the largest customer base >> jed kelly with oppenheimer. thank you. >> thank you coming up, time to get the

pulse on the economy from two ceos focused on the consumer and we'll see adidas around the world and ethan allen after reports that blew away 'll lktes. weta to the ceo right after this break (dad) we have to tell everyone that we just

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welcome back to "power lunch. i'm bertha coombs. u.s. health officials are

expected to declare monkeypox a public health emergency imminent leigh. sources tell nbc news cases have soared to 6600 according to the cdc with the majority concentrated in california, new york and illinois which have all declared public health emergencies in those states. hhs secretary xavier becerra is expected to hold a briefing at this hour within minutes along with the white house's new national monkeypox response coordinator. as you can see, a number of the stocks related to the disease are moving higher on that news, courtney >> thank you very much, bertha that is an important update. welcome back to "power lunch." shares of home retailer ethan allen rocketing after full-year results. the stock is up 25% just this month. here to weigh in on the strong quarter, inflation and the consumer and more is the chairman and president of ethan

allen. thank you very much for joining us today some pretty strong results and your consolidated net sales are up almost 29%. can you talk us through a little best details of that number? how much of that is inflation? have you had to increase prices because of what you're faced with as a business or is it pure demand from consumers? >> well, first of all, good to be on the call, and yes, it's a number of factors. first, you've got to be in a position where we are able to do it which is you have to have the right offerings and you have to have the ability to have the right people in our case it's a vertically integrated company from manufacturing to retail and interior design and all of those factors have helped and for all of us there's been a tremendous amount of focus on the home in the last two years that helped

us develop strong backlogs, and as we were able to make the produ products keep in mind, 75% of the product weise make ain america we have 1500 interior designers inhouse and they are the ones who made it possible to work with clients today their personal service combined with technology made it happen in short, it's the ability to have the design network and our ability to deliver and also, you're right, there has been inflationary pressures that has help head increase some prices, but for most of what you've seen today those inflationary prices have not affected this delivery just yet

>> you brought up a point in that answer that is key through everything that you have faced and not the least of which is the supply chain and three-quarters of this is done right in north america can you explain how you have this backlog of orders if you are not as trapped in the supply chain as others might be what's going on with the backlog? >> to have the 75% manufacturing in north america has not been easy i decided that we would consolidate our manufacturing in north america. we had r at that time 27 manufacturing cuts many of our competitors went offshore we said no, we will maintain in north america and we went to vermont which is our homebase,

but that was not enough and we went back to mexico and then to honduras and we combined all of this and gave us the great opportunity on the supply side and that was tremendously important. now, having said this, we still have issues. for instance, there were issues of us getting parts. there were issues of lumber even though we go to the forest sales in vermont with the saw mills and lumberyard, but still, there were challenges of transportation and especially while this was taking place we had exceedingly high demand from customers. all of that combined did create a backlog and we had it and the fact is that we did not have this manufacturing in north america. 75% of our product was made custom that is a very different business model >> yeah, that is very different,

and i wonder what you're doing with retail storefronts and you've got no debt and 100 million in cash, there is some movement to re-invest in malls, and i believe you tend to be near malls, but not necessarily in them. are you investing in that kind of growth or are you more trying to get more efficiency out of your existing locations? >> well, that's a good question. in the last 15 years, 65% of 175 looks have been relocated. okay, we started in the retail 50, 60 years back and we are celebrating 90 years of existence this year. so we -- and we had, we took over retail that was in free-standing locations all over the country. 65% of them relocated and we did

not go to the maul we were close to them and that process is today that the retail looks are smaller. we just opened one right here in westport connecticut and we just opened one in san francisco and others keep in mind that 50% less space than we had 20 years back or even ten years back and more efficient technology and interior design business so let's face more business. >> very quickly before we run out of time. what are you seeing with the consumer to be fair your consumer his more disposable income than other consumers. what are you seeing? >> we are seeing certainly consumers are more cautious. i think in the summers in the last few minds and having said

this, but still amount of interest in the home and we have to have the right, and it is combined with particular tech, biit was a fast point to benefit the koum sear i think they would continue to benefit. >> make sense. >> karooth, thank you for being with us. >> we went to nyu together >> hey a fellow stern alum program. >> up next, social media engineering new research identify an ongoing social media campaign that's spreading inauthentic news sources aligned with the chinese government that's specifically regarding its stance on taiwan those details are next plus running up that hill. adidas posting a massive profit decline despite increasing

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at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. welcome back tensions between the u.s. and

china heating up this week over speaker pelosi's visit to taiwan china engaging in military exercises as a show of strength, but it's what china is doing behind the scenes that could have an even bigger impact eamon javers looking into the latest cyber tactics >> the cybersecurity firm is releasing new research that they say shows the chinese government is behind a network and bogus accounts on social media that are pumping out the government's message and faked the words of a prominent u.s. senator that includes 72 news sites that the company suspects of being inauthentic and phony characters on twitter who comment on the content on these sites and all of it going out to the world in 11 different languages the fake news sites turned their attention to nancy pelosi's vs visit to taiwan urging them to stay away from the island nation that china regards as its own

territory. it alerted u.s. social media companies to the campaign and they've been removing some of these accounts john holquist says it is to secure ties to the chinese government which is not something it can do with its public meaddia outlets. take a listen. >> they're trying to create a vision of reality that benefits them these tools don't have their fingerprints all over it >> so one example of just how aggressive all of this is, at one point the chinese effort posted fake letters reportedly from united states senator marco rubio in an effort to push back on criticism of the chinese government in a statement rubio told cnbc that it's no surprise the government would do that and even sloppy efforts can cause confusion. how effective this effort has been in shaping the global debate the propaganda effort is nascent

and china isn't as powerful as other countries like russia and iran, but they are working on it >> eamon, are the big social media companies, let's just say, facebook, meta, twitter, for example, getting any more nimble at addressing this quickly >> if you look at some of these accounts today you'll see that they have been taken down. so twitter clearly responding and john hol quist said yeah, they are responding effectively to this and the volume, as you can imagine is enormous and these things are embedded across the world and you can imagine the scale of the whack-a-mole that the social media companies have to play to shut this down >> eamon javers. >> let's get over on contessa brewer for the update at this hour >> hi there, court ney. we have a pair of democrats in the senate introducing new legislation in reproductive

health care access for people with disabilities. in the wake of the supreme court's reversal of roe v. wade. polio has been found in wastewater samples from new york city indicating community spread according to officials waste water samples taken from two different locations in orange county during june and july tested positive for the virus and polio was found in rockland county wastewater samples and these are counties just outside of new york city and unvaccinated adult in rockland county contracted polio and suffered paralysis and had to be hospitalized last month. >> at least 73 million people are under a heat alert today in the united states. temperatures soared into the upper 90s from the mid atlantic to maine in what's forecast to be the hottest day of the week listen, folks, there's a reason they call this the dog days of summer, courtney. >> it is so hot. >> it's, like, hard to beat outside.

it almost hurts. thank you, contessa. >> ahead on "power lunch," reading the gas gauge. prices are a concern and is the pain at the pump over? ev brand lucent as it slashes 222 and that's today's three-stock lunch. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. - in the last two years, we quadrupled our team and the pace we're growing, i couldn't keep up without ziprecruiter. they do the legwork and they get my job posting in front of the right candidates. i love invite to apply. i instantly see great candidates and i can invite them to apply.

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>> just under 90 minutes left in the trading day and we want to get you caught up on the markets, stocks, bonds, commodities and long, slow decline and let's begin with bo pisani at the new york stock exchange >> we peaked four times today. we are trying to establish a new trading range, a higher trading range around 4150 to 4200 and these are the highest levels since june and the nasdaq yesterday the highest levels since may and it's hard to do it without the tech stocks and that's what's led the way in the last couple of weeks so we had good numbers, amd, nice numbers overall maintaining their full-year guidance and microsoft's been up recently and the highest level since may and apple was at the highest level since may and flattish today and the speculative tech stock and cathie woods is on a tear.

apple dropped dramatically and it's back almost where it was a week ago before the earnings report came out. block spin up, tesla, six out of seven-straight days and returned to the upside and nice run out of the cathie woods stocks what people don't want is the energy stocks. we were at $90 on west techs, te texas intermedia and they've been out of favor since oil topped out and that was in the early part of june and great declines and the earnings report most of the big companies have reported and nice report from ice, that's the owner of the new york stock exchange and they had a nice beat up on the top and bottom line and their exchange business did good and fixed income did well and the data business, they have a big data business that also did very well jon, back to you >> thanks, bob now to the bond market yields heading back down to the

four-month lows we hit earlier this week. rick santelli is in chicago for us, rick >> yes, john, indeed and this is in front of the big job's number tomorrow and let's not forget. initial claims of 260,000. they're not as high as the recent 261,000 and we were definitely awfully close to the highest level going back to the november 12th era and why is that important because, of course, as initial claims move higher, it gives us a very real time read on employment and layoffs and we, think, know that tomorrow's number is more of a lagging indicator which means at some point this we see jobs roll over it will have an outsized effect on the market even though it might be a dated piece of data if you look at a week to date, you can clearly see tuesday is a big day and we have an intraday lowdown for a ten-year and everything reversed that day that was the tough fed talk day and it closed at 2.75 which

means the first 257 yield settlement that was the low going back to april 5th and the three month versus tens shows you what a volatile week it's been and how the fed is not happy with the markets because that big move that weigh saw down to 251 and down to eight bases points and look at how it's plowed back up and it does show how quickly it can possibly invert on a weak jobs number tomorrow and finally, here's the one many people like, twos to tens and it's the fifth session where it's been the most inverted in 22 years jon fort, back to you. >> a lot riding on that jobs number thank you. pippa stephens at the commodity desk >> $90 for wto is notable because it's the first time the contract has dropped below that level since russia invaded ukraine at the end of february

at the lows of the day wti hit 87.55 a price hit february 3rd this comes down to demand concerns and the latest inventory showed that gasoline supplied over the last four weeks has dried to 9% compared to last year and that follows weak data out of china as well as growing recession fears and the price between wti and global benchmark brent crude is now the greatest in two years. in the u.s. we do have some supply coming back online as well as the ongoing sp, releases over in europe and the market remains ultra tight. let's check on prices, and at 88.43 and brent crude at 94 for a loss of 3% and check out gasoline futures down another 4% and dropping more than 20% this week jon? >> all right thanks, pippa. you mentioned gas futures and stay with energy and talk gas prices as the u.s. sees its 50th

straight day of declines let's see, the national average for regular gas is now sitting at $4.14 a gallon according to aaa. that's 67 cents lower than a month ago, nearly 90 cents lower than the june peak of $5.02. but still, prices are almost a dollar higher than this time last year. our next guest expects it to fall below four bucks a gallon and maybe sub three buckses a gallon in some states, and let's bring in patrick dehan, head of petroleum analysis at gasbuddy do we expect a drop this fast and how much longer can we get it >> well, jon, i think in the next hundred hours or so, and maybe sooner than that, the national average will breach that $4 a gallon mark for the first time in months i think march 5th was the first time we saw the national average and we're already at 4:09 and

ten cents away and i tweeted out $2.99 gas. two stations in oklahoma city are already at the $2.99 mark and we've seen them during price wars and this would be the first time it appears that a legitimate profit margin with the stations in oklahoma city. very few motorists are going to see that and what few motorists are going to see on the west coast, laggards, but they're falling back over $5 and even california is going to fall under the $5 gallon mark >> why did it drop so fast >> a lot is what pippa mentioned. concerns over consumption. we're coming into the summer driving season and the implied demand metric, clearly disappointing although gasbuddy data doesn't agree with the decline that we saw. i think there are growing concerns that heading into the

slowdown in the fall and economic concerns and gasoline, probably the unwanted hydrocarbon going into winter and being preferred is diesel and jet fuel >> that's a discussion of the demand and of course, the other side of that is supply and we keep hearing about how supply is so tight we did a whole segment on it yesterday potentially on this show, on "power lunch," why is that not playing into the price of gasoline right now? >> if you parcel out the dyessel and jet fuel and it's distillates that are seeing tight inventories and gasoline has moderately improved and it's just a little below where it was a year ago so certainly a much different fate here for lighter hydrocarbons like gasoline that appear plentible and recessionary would dictate gasoline disruption and there will be distillate jet fuel

prices and that would approach winter and the northeast will start to fill up with heating oil ahead of the colder weather and europe's challenges abound in terms as oil heads into the colder months as well. >> we also talk about hurricanes this year. we haven't had the hurricanes hit the big refining regions is that a risk that we need to be aware of that potentially could cause some kind of a price spike or price shock at least in the short term >> without a doubt we're about two weeks away from the peak, from the start of the peak of hurricane season and that's a challenge that still could push prices back up. in fact, earlier today forecasters at colorado state university did lower expectations slightly. this is not we're all clear. there still could be a major hurricane and they're forecasting four major hurricanes to hit the u.s. and if one of those storms ventures

into the gulf of mexico at a time that refining capacity is still constrained compared to 2019, oil production we still need every barrel, if there is a shutdown from a hurricane we can still go up in dramatic fashion. >> is the price of gas based on supply being where it is, is it a decent gauge, mostly of consumer demand or is it bigger than that? >> you know, if anything, it feels like gasoline may be oversold given the fact that we still have three months left before the summer driving season wraps up some of the numbers have been shockingly low from the eia and we saw implied gasoline demand go from 9.25 million barrels in the previous week and that's a pretty big plummet and obviously, when we talk about recession or economic slowdown, there's a lot of 2008 and 2009

and keep in mind, the decline is held together by a string. this is not a very, very concrete decline that's well rooted in fundamentals i think you're seeing a lot of money flow out of commodities and move elsewhere and that could be a big reason for the huge sell-off. >> string or no string, a lot of people that want to fill up will take it. >> patrick, thank you. >> that's right. >> coming up, adidas posting a profit loss. what does this say about the state of the global economy? sir eisen bringing us an interview with the company's ceo. beyond meat, it's been a rough run for the stock as we discussed yesterday on the show. will its cash burn continue? as we head to break, remember, you can listen to "power lunch" on the go. listen to usn ur oyo favorite podcast app. follow and listen today.

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>> welcome back to "power lyunch

qw lunch. we've been hearing from ceos are we heading into a recession or not? adidas, and i guess it depends on who you're talking to and what part of the world you're talking from, sara >> adidas painted a strong picture of the u.s. consumer demand in north america doesn't appear to be slowing down, yet, headwinds from a slower than expected recovery in china and shuts down operations in russia are weighing on the business causing a 28% decline in operating profits. here's what adidas ceo told me about what he is seeing around the world from the consumer right now. >> the way we see the world is a dwiedzed world with 85% global business growing and the combined 14% that's pretty much the highest growth we've seen from the highest three, four years. we have north america growing at 21%. we have latin america growing 37% so you have a huge part of the world growing double digits

in our business and then we have china that is minus 35% which is very much relcovid related. you different dynamics. >> do you see that in the u.s. and europe where there are increasing concerns about recession? >> we're right now the fastest-growing sports brand in the u.s. and we continue to see very, very healthy demand for our products in the u.s. and that's also our expectation going through the end of the year whether that's in the store or digital we grow more than 30% digitally in the u.s. and if you exclude russia growing double digit and we expect a solid business and a slightly slow in europe and overall we see the two markets being very, very healthy >> no recession there. another highlight, the yeezy brand which continues to be up strong double digits and now is has a, quote, tremendous impact on adidas. think i asked him about the relationship with kanye west and

we'll have more on that especially another recent controversy between the two later on in "closing bell". >> i know that's always an interest point for you when it comes to kanye west and his different consumer retail partnerships and fashion lines i wonder if he mentioned china with the soft point with the covid restrictions is that all he thinks is the issue there? when the restrictions ease up do things go back to normal for adidas in the wear >> it is i asked that exact question, courtney it is the primary headwind and that is the chinese demand side of things and they're dealing with the rolling shutdowns as it relates to covid and that's weighing on the business and it's not impacting the factories which are up and running and that the supply chain appears to be improving, but yes, china and then russia, those are the big headwinds. when they lowered guidance last week, interestingly, the company did put a line saying this takes into account the lowered guidance and any weakness we might see in the developed

markets which was why i was curious to ask about that point today, but from our conversation, we do not see it yet. they continue to see double-digit growth in the u.s. and demand remaining healthy. >> got it, sara. i finally caved and bought a pair of adidas superstars, and i'm light years behind everybody else am i the cool mom now? >> will you get the yeezys next? >> i'm a yeezy demographic >> you never know. biggest movers in today's market are next we'll get the ad itresn three-stock lunch. ♪ ♪ and my banking relationship was getting...well, complicated. hahaha! so, i broke up with messy accounts and moved my money to sofi. now i earn higher interest on my checking and savings, and bank, borrow, and invest—all in one app. feels nice being in control. break up with bad banking. get up to 1.80% interest, and bank, borrow, and invest all in one app. plus, download the sofi app and earn up to $300

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it's time for today's three-stock luchnch. carvana scheduled to report after the bell currently down 85% lucid stated logistics challenges, down 10% today and shake shack's shares slide after falling short on their quarterly earnings goodness knows i did my part this quarter let's bring in the founder and president of jewel financial to help us trade them first up is carvana. i believe this is on the one to watch for possible bankruptcy. what do you make of it

>> that's extreme but potentially there. the company is set to lose about $2 a share that's the reports, at least that's estimated, and they only have $3.75 a share in cash they have a tremendous amount of debt what's interesting about this one, courtney, is it's 37% sold short so any subtle hinti of god news could create a decent squeeze but that's not enough for me to go long the stock. if you happen to go long the stock, i would sell into any stock and avoid this lemon. >> next up, lucid, quint how long do they have to get this turned around and start turning out vehicles >> that's a good question. they have $4.6 billion in cash so it's a long time. but as an investor, do you really want to wait that long? the reality is that everybody wants to find the next tesla

my contention is just own tesla. every time you think this company is doing something, they come out, again they cut production they have supply chain issues. again, it's just not something that i want to touch at all. they do have a lot of cash, so they're going to have a long time but you can wait until the real turn-around begins in the stock price and you won't miss much upside. >> the final name is shake shack. what do you make of this one love the burgers, miss the fair shake. >> this is the only one that i have down as long on the list today. i think you can buy the weakness the report is out of the way it was not great they cited what you'd expect, slower consumer demand they're facing inflationary pressure but let's not forget this is a company that is still in growth mode they're going to be continuing to open new stores at this moment they only have six drive-throughs operational that's going to be a game-changer for them.

we think with this company about $10 a share in cash trading three times sales, schools coming back in session, again, this is one i think would stop at lows, because we're looking at it as a trade, which is a pretty good clip from here, 20% or so, you could go long this name on this weakness. >> quint tatro, thank you very much for joining us for our three-stock lunch. still to come, beyond meat reporting after the bell details when "power lunch" returns. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire bubbles bubbles so many bubbles! as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see...

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welcome back to "power lunch. shares of beyond meat down 6% this year. david trainer thinks it could head for bankruptcy if it doesn't make drastic changes today we hear from the company kate rogers joins us ahead of those earnings >> analysts looking for a loss of $1.18 for the second quarter. retail estimates in supermarkets and stores $99 million while food service in restaurants is $40.1 million for this quarter the company had touted 2022 as a big year for partnerships with mcdonald's, yum brands and pepsico. the ceo ethan brown said in may with production becoming more efficient in the second half of the year then there's the mcplant mcdonald's confirming the mcplant test had concluded as

planned and there have not been any announcements for a nationwide launch or further testing. peter sole reported back in june that the franchisee reaction was somewhat lackluster and at the low end of projections the two brands announced a three-year partnership in 2021 it has a deal with yum brands with kfc and pizza hut but you're not seeing these progress to any permanent offerings they get a lot of press but the analysts say the mcdonald's partnership in particular was important for red meat growth for the company this year. so we'll have to see what happens after the bell and moving ahead back over to you guys. >> what's more important, restaurants or grocery stores. >> food service revenue declined last quarter grocery did see growth due to the jerky. if you took out the jerky product, that also declined. the company c etch o has talked about the amount of competition that they're facing in the plant-based meat space, something he hadn't talked about

before there are so many more entrants. they may be better capitalized and able to produce more quickly but the restaurant partnerships get a lot of press for sure. >> they absolutely do, kate. beyond is such an interesting company. thank you all for watching "power lunch." i guess that's it. that sure went fast. >> yeah, quick thanks good being with you. "closing bell" starts right now. stocks are wavering between gains and losses as we await tomorrow's big jobs report the nasdaq and s&p 500 still tracking for a positive week the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen unchanged on the s&p 500 you do have some pockets of strength utilities are the best performing sector right now. consumer discretionary also higher a lot of the home builders are moving up, the 30-year mortgage rate drops below 5%. welcome news for borrowers the nasdaq is positive, up a third of 1%. it is having a goo