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 good week,

bringing the week-to-date total to 2.6%. the worst performing sector is energy wti crude falling below $90 per barrel lowest level since before russia's invasion of ukraine gas prices down again too, 51 days in a row. still higher than this time last year coming up on the show today, we will talk to the ceo of electric truck maker nikola the stock getting a boost on those results. plus we'll speak with the ceo of zoetis which is ticking lower on the back of quarterly numbers but has been a long-term winner. let's begin with the latest signals on the economy jobless claims coming in as expected but near the highest level since november tomorrow the july jobs report will be a key indicator for the fed. in today's market dashboard mike is looking at the labor market overall and what we can expect tomorrow. >> just in time for the market i idling ahead of that jobs

number bank of america has two new gauges of the labor market the first is a general blend of labor conditions and then there's momentum, labor market momentum indicator that tells you the trend. the momentum has flattened out and gone slightly below zero but look at the overall condition, the tightness of the labor market by various metrics, well above prior peaks so there's plenty of room on the downside what i find interesting is where those two gauges sat in advance of prior recessions. here you have it in 2000 or so you have momentum go negative well ahead of when in fact we did -- hit a recession, even as you did have labor market conditions higher. similar story back before the great financial crisis my point is you have some pre-recessionary type conditions falling into place but it's not there yet. tomorrow the big question is what's the market looking for, what does it prefer, whether a hot or a cool number

there's a decent case to be made that a really strong labor market number is going to have people listening up for the fed saying, look, we still have to be vigilant on rates. >> bad news is good news. >> i still think you want a six-digit number, so not below 100,000 new jobs because the forecast is 250. but i think if you got well above the forecast that might get people moving their feet a little bit. >> the strength and the resilience of this market is so notable, especially because it does feel like we are in some sort of concerted effort by the fed, at least some sort of communication campaign, to talk the markets away from the idea that a recession is inevitable and that fed easing follows in a recession, like they have been trained to think that's what's in the market. so is the market getting this wrong, this whole calculation? >> i don't think there's quite as much of a stand-off as it would seem necessarily yes, there's no doubt fed officials are out there wanting to reiterate the last committee-based framework for how they're thinking about rates

and what they need to see from inflation before they even think about ceasing the tightening campaign but the markets are saying, look, we can see around the bend a little bit gasoline prices have crashed since the s&p was at this level two months ago, you see a 20% drop in crude oil, you've seen 10-year bond yields come down massively, more than half a percentage point whether or not that's right or not or going to change based on what the fed does, i think equities have more or less kept in tune with the other macro indicators. >> i know. i just wonder about this growth inflation trade-off and whether the market has it right because it's not what the fed is saying right now. >> no, but i think what the market is saying is at one point we were leaning in the direction of recession inevitable. now we can add a little more which softish landing is conceivable. >> mike, thank you for more on the market, let's bring in john rogers, co-ceo of ariel investments.

john, it's good to have you. >> good to be here. >> what do you think about the market pivot now, where we've seen stocks rally since the beginning of july, especially growth stocks which you do not like, on the idea the fed is going to pivot and stop hiking at the end of this year and potentially start cutting? >> i don't agree that the will stop cutting. >> stop hiking. >> i do believe inflationary expectations have gotten too high everyone started to feel it finally got around the concept that inflation was here to stay and it wasn't transitory now everyone in the country knows how bad things are when it comes to commodity prices. everyone knows how tough things are out there because of the inflation. so therefore i think inflationary expectations will go down but i still think interest rates are too low as you know talking with my colleague, charlie, we think rates will go higher. >> and in that environment you

continue to think value will outperform growth. that has been the case most of the year but not lately. >> exactly we still think there will be pe compression. we think value stocks are way, way too cheap. they're going to really benefit from the economic recovery we think ultimately there's been so much fear about a recession, so much fear around the economy being too weak, a lot of value stocks overly penalized based upon the fact they are typically more cyclical and more exposed to the overall economy. >> i want to talk about some of your favorite stock picks. paramount, you've been in this stock for a while. i mention it because of the reported earnings today. it was a beat. "top gun" driving the film business but they did talk about weakness in advertising. is that a concern around this stock and others in the media space? >> i think those are short-term concerns as the economy has gotten a little tougher lately, we saw the gdp growth the last two

quarters people do pull advertising when there's uncertainty in the marketplace. at the same time, we know paramount is so diversified around the world with so many great products, cvs, viacom, showtime, pluto, simon and schuster, when you put the sum of the parts together, we think the stock is still selling at a 50% discount or more of what the overarching business is really worth. and we think you never know, maybe because of the streaming wars there could be m & a out there. there are way too many streamers. we think ultimately we'll get down to three or four. if paramount global doesn't become one of those three or four, it will be consolidated and that would also be a good thing. >> that's what i was going to ask you, john, if this company can really get to your target as a stand-alone company or if the thesis has to be that it's going tokt acquired. it's also notable that warren buffett is now in the stock as well.

>> we're thrilled to see berkshire hathaway as a shareholder. you know how much respect and admiration we have for warren and his team so we think that's a terrific tailwind for us at the same time, we think that bob backish has done a great job of revolutionizing paramount global and giving them the right incentives and right vision. we do think it will ultimately be one of the long-term survivors because we think they have the best mix of products. when you think about the live news, the live sports, to go along with their historic content and library, all the new and exciting things that are happening there, we think ultimately this is going to be one of the best streaming services out there in the entire world. >> well, a lot of people think the bull case is if red stone agrees to sell mattel has also been an outperformer this year and you've liked it for a long time. do you stick with it, given the relative outperformance against competitor hasbro?

>> we think they have done a fabulous job with mattel we often see him on cnbc, he's often very candid and open he's beat expectations quarter by quarter by quarter. he's been very, very consistent. he's gotten mattel back on track. and as you know, they have become this worldwide brand. they are just doing terrific things re-establishing fisher-price that had been struggling, american girl that had been struggling, barbie continues to be quite strong. and when you think about it, all the new movies that are coming out that are based on mattel products, they're using their intellectual property exceedingly well the stock is selling at well over 30% discount to what we think it's worth, selling only about 13 times next year's earnings we think earnings will continue to explode and be much, much better than people anticipated again, the leadership matters here and they have really brought mattel back to being where it should be. >> what's your highest conviction idea right now, john?

>> i think beside these two being two really two great favorites, we love adtellum. it is fixated on the nursing market and health care market. those are places where there are shortages of nurses, doctors and health care professionals. the new ceo has that company on track and we think it's selling at a very low multiple, less than 11 times next year's earnings we think close to 30% discount, i believe. and so i just think there couldn't be in a better position for this company and we value our nurses and health care professionals more than ever adtalem does the best job of educating health care professionals, doctors, nurses and veterinarians. >> john rogers, thanks for coming on and sharing some of your ideas appreciate it from ariel

always good to see you. >> thank you take a look at nikola shares they are charging higher after the company said it was on track to deliver 300 to 500 battery electric trucks by the end of the year, reaffirming guidance there. we'll talk to the nikola ceo about those results and what makes him feel so confident given some of the production delays this industry has been facing the dow is down 59 points. at the low we were down 159. we'll be right back.

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welcome back a trio of ev stories to tell you about today. tesla's annual shareholder meeting kicking off in a fewer hours. shareholders are voting whether to approve more shares to follow through on the stock split it's up sharply. lucid motors is under pressure after cutting its vehicle guidance for this year by 50%. and nikola is higher today beating analyst estimates on both lines, delivering 48 trucks in the second quarter. also confirming it expects to deliver between 300 and 500 trucks by the end of the year. joining me now to talk about all that is nikola ceo mark russell. mark, welcome back good to have you. >> good to be here >> so on the production, you delivered 48 i think you expected to deliver 50 previously expected 50 to 60 what are you learning about this process as you get it going? >> well, that it takes 10,000 --

about 10,000 parts to build a truck. the number you need to build a truck is all of them >> and you're having trouble getting them >> well, there were a lot of short parts short as we ramp this up this is the biggest supply chain crisis i've ever lived through so getting all those parts in the right place at the right time is hard. >> is it getting any better? >> yeah. i think we're in such a better position now than we were a month or a quarter ago for sure. we expect to be in an even stronger position going forward with control over our battery supply chain once the romeo acquisition closes. >> is that why you are sticking with the 300 to 500 delivery expectation for the full year despite this supply chain crisis >> exactly we're confident that we can overcome anything that comes up and hit in that range. >> what is your perception of

consumer demand at this point for the trucks that you're producing, both the batteries and your future plans around hydrogen fuel cell >> well, we're not direct to consumer of course we're business to business the businesses that we sell to, they really want and need these trucks many of our launch customers have objectives to help decarbonize commercial transportation the only way you can do that is if you can convert from diesel trucks to clean trucks, which we sell, and we provide the energy that powers them. >> what about the regulatory environment, is that a headwind or a tailwind at this point? >> well, i'd say that it's potentially about to become a big tailwind if the current proposed legislation passes, the so-called manchin deal, if that is signed into law, that's going to be a powerful incentive for us and everybody else in the space. additional purchase incentives and additional incentives on the

production of clean hydrogen >> a lot has been told about the consumer incentives to buy ev cars how does it affect you and what you're trying to do? >> well, if this legislation passes as is, as we understand it, it will include an incentive up to $40,000 for a commercial vehicle, heavy truck like ours that's in line for what's been there for passenger cars for a number of years so that puts commercial vehicles on equal footing with passenger cars. and then unique to heavy duty transport and nikola's business model and just a few other people in the world is the hydrogen production tax credit, up to $3 a kilo per hydrogen kilo produced which would be a powerful incentive to get clean hydrogen into the economy and powering things like heavy trucks. >> so would it change the economics for you, the calculus, the forecast >> it would make it better everything we do is based on

pure economics with no incentives we want to make sure it works without incentives if we do have incentives, we're thrilled to have those and they make it even better. that would be the case here, makes it even better. >> so the analysts consensus is that your revenues are five times higher than they are -- five times higher in '23 than they are in '22. at this point can the production run rate handle that can you meet those high expectations >> what we're projecting, we're confident we can meet. we are going to be growing rapidly from here. we start slowly here and grow rapidly, that's the plan we feel confident we can do that >> and finally, mark, how big of a challenge at this point is trevor milton, your founder? he is of course the largest shareholder and has a lot of voting control, about 20%. you overcame that to issue more stock recently he's about to face trial in september. i know you don't want to comment on all of that but just in terms of what it's

allowing you to do here, some of the headwinds you still deal with on the reputational side and obviously when you're fighting to change the rules, like issue more shares >> we're super focused on going forward. we're grateful to have additional shares authorized now, we got that approved. that gives us the flexibility to continue our growth rate going forward and we're super excited about what's coming down the pike for us. our milestones in the next couple of quarters of next year are just super exciting. we can't wait. >> mark russell, thanks for giving us a status report. we appreciate it >> thanks for having me on. >> ceo of nikola. show you where we are in the markets, down 30 points or so on the dow. the s&p 500 a little change, it's moved up a little bit still holding on to gains for the week utilities, consumer discretionary and industrials are leading. real estate and communication services just turned positive. technology is outperforming again today. that's why the nasdaq is up half a percent. it's energy, staples and financials at the bottom of the pack lower rates, continue to see

that buying bonds, treasury yields lower. coming up, fintech's epic week getting even more interesting today as coinbase, look at this, surges on a new deal with blackrock. it's up more than 10%. we'll talk with a coinbase analyst about the news and what he recommends doing with the stock next. coinbase is the second top searched ticker on cnbc.com. the 10-year yield still in the top spot it's a bond rally. the yield is 2.67. tesla is up there half a percent into its shareholder holding alibaba and then crude oil dropping below $90 we'll be right back. what if you were a global energy company? with operations in scotland, technologists in india, and customers all on different systems. you need to pull it together. so you call in ibm and red hat to create an open hybrid cloud platform. now data is available anywhere, securely. and your digital transformation is helping

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we also see a lot of value in biotech where they have very robust research pipelines and at the end of the day a ton of cash that they're sitting on. granted they're burning it to do that research, but we think that

there's going to be a lot of m & a in that space going forward and it represents a real opportunity for active management >> health care biotech investors have been waiting for a while. that was goldman sachs' ashish shah today's stealth mover, amgen buying a biotech company for more than $4 billion in move they make a reecently approved drug for a rare immune disorder. the ibb biotech index is up about 2.5% it's made a move lately. it's still down sharply this year but there is excitement around m & a finally a lot of investors waiting for this the merck close to getting a deal with cgen a lot of people have been bullish and waiting for a while. up next, the ceo of zoetis

discusses how generic drug competition and currency fluctuations are impacting that business the dow is down about 64 points. we'll be right back.

breaking news out of washington on the inflation reduction act.

ylan mui with the story. >> reporter: sara, the senate will now vote on the inflation reduction act starting on saturday afternoon that's according to a statement from majority leader chuck schumer. that sets up a timeline that would put final passage of this bill sometime likely on sunday or monday, but it remains unclear if the senate and democrats have enough votes to actually pass it i saw senator kirsten sin marks the wild card in these negotiations, speaking with republicans on the floor earlier today. she had said that she wants to wait until the bill's text is fully scrubbed before she announces how she will vote but senate democrats not willing to wait any longer. they're saying that the voting process will begin on saturday afternoon, sara. >> it will be interesting how hard she fights for that carried interest provision to remain ylan, thank you. ylan mui the nikola ceo just telling us if this bill becomes law it will be a big tailwind for their industry and for his company

take a look at zoetis, another big earnings mover it's dragging, despite higher second quarter sales in their report but the company is feeling the impact of foreign exchange, causing them to lower full-year guidance joining us first here is the ceo, kristen pack. she's a member of the ceo council. >> great to be back on set, especially in a quarter where we had really strong results, as you said. >> but you're not happy with the reaction. >> no. i've got to say it's hard to be happy with that one. we had 8% top line growth, 9% on the bottom line led by companion animals so we felt it was a really strong quarter. >> i thought people were returning their pets >> no, no, no. i think the trends you're seeing in pet care are really driven by more millenials and gen z adopting pets. you're seeing more high income people adopting pets and everyone spending more time with those pets so i think those are really trends that are going to continue what you're seeing is it's

driving for us, especially given our innovation, tremendous growth across both dermatology and antibodies. >> so the pace of veterinary visits you expect to keep up at these high levels? >> we expect veterinary visits to come in about where they are. a few things i'd say they're up from 2019 levels. i think you saw in 2021 some phenomenal vet visits with a lot of new puppies have to come in every few weeks as you know but we're seeing a trajectory up but we expected it to flatten. the focus for us is on spend per visit which is still trending 7, 8% in q1 and q2 above where it was a yorear ago. so it's driven by innovation and customers willing to spend, as we said. that's why we believe zoetis is a recession-resistant industry pet owners are willing to spending 86% of them would spend whatever it takes for their pets.

>> i know foreign exchange is a problem. you're very international. is that it >> we didn't cut guidance. we narrowed the revenue range and that had to do with the confidence in the strength of underlying demand. if you look at adjusted net income, the operational range, moved it up 1% and again is confidence in the demand of our business and kbroet in the second half of the year. >> what about inflation, how does it affect you >> inflation is affecting everyone we took in the u.s. companion animal business about a 5% price increase this year and we're seeing overall, as you look at 2019 and today in vet clinics, their revenue is up 20%. i think it's again a space where vet clinics as well as companies like zoetis have been able to take price it's harder for us in our livestock business so on the quarters we only took 3% overall on price but we really again, back to the

trends we're talking about, the strength of the pet care industry, the innovation that we're bringing to it has helped us weather these trends. >> you mentioned livestock it's been a weaker spot in the portfolio, though i think the numbers did come out better than expected in that group today when do you see that turning, if at all >> we have to finish lapping the generic entry competition we got and we'll be able to do that in 2023 we really see livestock going back to its traditional growth rate around 3 or 4% and we're investing in innovation to get above the market growth, looking at tnew therapies, vector vaccines, vaccines in swine and immunotherapies and precision livestock farming. >> during covid people weren't eating out as much and livestoc was a little weak. >> cost upon producers is still really high. if you're any consumer going to

the supermarket, the price of your chicken or beef is really high so i think it's still got some headwinds as we look into it as you look at some of the big drivers for us, china we really believe will returning to growth as pork prices in china are returning. covid hurt them in the first half of the year as you know so we really do believe the macro drivers, you're still seeing population growth, growing middle class and more urban urbanization >> you set the word recession-resistant. >> yep. >> that's what you've seen in the past with animal health care >> if you go back to 2008, 2009, the industry as a whole grew at 3%, as did zoetis back then. back then we were 65% livestock, which does get hit harder. now we're 65% companion animal, which is the much more resistant animal so we think zoetis is well positioned in a recession. >> i read all these headlines about people bringing back their pets to shelters

you're saying that it's generational shift >> it is a generational shift. people are bringing pets back but at lower rates than they did actually before covid, so -- >> so that's good. >> it's a good underlying trend for us at zoetis. >> kristen peck, it's good to see you. >> great to see you too, sara. up next, you will hear from the adidas ceo on the state of the consumer and current promotional environment. under armour warned yesterday. find out what he had to say about what's next. the dow is down 67 points. we'll be right back. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.

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in today's big picture, a pulse check on the consumer. today i spoke with adidas ceo who gave us some clues adidas earnings were way down by

headwinds in china being locked down because of covid and russia which is exiting but the bright spot, growth in the west, north america particularly the brand continues to see strong demand. 21% growth in the u.s. i also asked him about the relationship with kanye west, which can be controversial at times, including now, and about whether he sees a more promotional environment after under armour warned about that this week. take a listen. >> i think right now you are seeing that in china, i think you might start to see some in the u.s. and europe later on in the year when you start getting shipments coming in at a higher rate right now we have an okay environment right now so we've not see overly promotion it might increase in the second part of the year because you're going to have a higher supply into the market. and there is no doubt that some consumers will be impacted through the inflation and higher prices you also see certain countries the first layoff but besides that, we're very, very bullish for europe and, as i said, for the u.s. >> so are you still raising

prices or are you going the other way? what exactly is happening on pricing? >> no, we raised price for the second half and our expectation is that we'll raise price next year because we are seeing the input costs continue to go up because of material shortages, labor rates are going up right now we're not seeing any changes in shipment rates, and that's why we'll continue to push pricing we've done it for the second half and expect to do pricing for the first half next year. >> what is your relationship these days with kanye west >> kanye is our most important partner worldwide. we have a very, very good relationship with him. we communicate with him on an ongoing basis. we're very proud of that relationship so continue to be super happy with that relationship and the products he built and the respect he has in the market, so it's very, very good. >> because he claimed, according in an instagram message that you planned yeezy day without him and adidas is ripping off some of the styles like his slides,

that there has been issues with capacity is any of this true? >> i wouldn't go into detail to discuss those elements from it from a supply standpoint there has been issues but overall we have an extremely good relationship with kanye and speak to him very, very regularly. and we very much respect what he does so i'd say we have a very good relationship with him >> didn't bite on that one obviously the yeezy brand is key, still growing double digits just last week adidas did cut their outlook saying they expect mid to high single digit top line growth which adidas says reflects slower than expected growth in china. the stock, though, has underperformed nike, the market and lululemon so far. up next, we will discuss why coinbase is rallying and on base for its best year ever that and a countdown to ocblks earnings when we take you straight inside the market zone. we'll be right back.

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that lets you place, flatten, or reverse orders so you won't miss an opportunity we are now in the "closing bell" market zone. cnbc senior markets commentator, mike santoli, here to break down the crucial moments of the trading day. we have kate rogers and owen lau. mike, i'll start with you on the broader market which is sort of mixed. the nasdaq is a little higher, the s&p 500 is unchanged and the dow is lower path of least resistance still feels higher after a 9% gain in july and sort of starting off this week with the third week in a row of gains i don't feel like enough people mentioned the bank of england today which hiked rates 50 basis

points, the highest they have done in 25 years or something, and much moreexplicitthan our central bank and others about expecting a recession to start before the end of the year it's a gloomy forecast weighing on the pound does that resonate as we're trying to figure out what the fed is going to do and what our economy is going to do >> it doesn't really i'm not saying it shouldn't, but it seems as if really that would get filtered in to some degree through how the dollar trades off of it, as we're seeing right there, as opposed to really anything it tells us about our macro situation. now, i guess we may look back in retrospect and say stocks are whistling past the graveyard the treasury yield curve is deeply inverted. fed officials keep telling you they see no easing off the tightening campaign any time soon on the other hand when the market does what it seems not positioned to do, in other words, when it goes up or stays strong in the face of potentially negative catalysts, you have to pay attention to

that and i think you do see decent rotation under the surface. even as things like banks have not traded well, so we'll see if any of that kind of comes home to roost or if it's just a matter of this market having gotten so oversold people are left behind by this little bit of a rally and maybe the macro data has been good enough to keep the bull case alive for now. >> i just want to be clear about what's happening bonds are rallying and the yield curve is inverting further is the bond market pricing in a recession as the stock market prices out a recession >> i don't know that that's the case the stock market arguably going down 24% peak to trough went some distance toward pricing in higher recession risk. i think what the bond market is saying is perhaps either we do truly get a recession and it means that the fed doesn't have much more to go and will probably have to reverse or we don't get a recession and the fed does its job on inflation and longer term rates are responding to things like that so we haven't escaped the risk

that in fact we'll have much more of an all-out recession as opposed to this bumpy period i continue to go back to the fact that nominal growth remains relatively strong and companies are telling you there's still enough business out there they don't have to radically downscale their operations. >> let's hit the restaurant movers and find out what they're signaling about consumer spending because a trio of restaurant stocks making big moves after earnings restaurant brands beating wall street estimates and then shake shack sliding on weaker than expected revenue, partially due to fewer purchases by lower income customers that was mentioned and papa john's also under pressure after missing on both the top and bottom lines kate rogers joins us kate, what is the thread here that we're learning about consumer spending, particularly in the restaurant sector and how well it's holding up >> so, sara, it's been so dependent on the company but i think the lower income consumer thread does trickle through all of the names you mentioned

one exception is with starbucks earlier saying they're not seeing a trade down. but we heard from papa john's ceo today telling us they're poised to benefit from a trade down because they think they have the best value proposition in the pizza business for a recessionary environment you heard from jose sill at restaurant brands international about not making too much of ups and downs in the near term and adding they are seeing some tradedown and could benefit into fast food. so i think broadly what we're going to continue to see is a lot of strategic price hikes, restaurants testing what they can do there and value marketing in this environment as they move ahead. >> kate rogers, thank you. confusing picture. we'll get more on restaurant stocks tomorrow speaking exclusively with the ceo of wing stop. check out booking holdings, one of the weaker stocks on the s&p 500. the travel company beating wall street's estimates but missing sales forks and issuing a cautious outlook caused by

inflation. something glenn fogle discussed earlier on "squawk box." >> how in advance people are booking is shorter than 2019 we have less visibility and are not sure what's going to happen. and the points you just made, fuel up a lot. people spending a lot of money filling up their cars and concerned about inflation in general. these could impact, but the long run, people will keep on traveling and travel more and more over the long run >> seema mody joins us seema, now we have booking and airbnb what do those tell us about what we could get from expedia when it reports after the bell today? >> the big question is, is this peak travel demand, is that what we are hearing from the major travel operators expect expedia ceo peter kern to reiterate what glenn fogle just said, it's very strong but there are macroeconomic factors that have to be accounted for what we want clarity on from expedia is the performance of

bookings in may and june that's where airbnb said it's experiencing softness. booking holdings did not see that where does expedia stand as you know, it's been growing its vrbo home rental business. last time peter kern joined us, he told us the demand story remains very robust for vacation rentals. is that changing as travelers return to hotels we got very good numbers from hilton and marriott over the course of the last week. and both those stocks, the hotels are faring much better than the online travel platform so far this year that tells you something, right? >> absolutely. seema, thank you seema mody mike, seema raises the question peak travel demand is that what the market is telling us >> yeah, for the most part it is you look at the airline stocks, they really haven't even gotten much of a lift with the decline in fuel prices even hotels, which have been really strong within the group, have faltered a little bit here. so if you wanted to make the case, if somebody had a sense

out there that in fact travel demand was going to be more consistent and travel on through the fall, it would seem the market would actually -- it would be an opportunity there. right now the message is nobody is willing to go out on a limb and say that the consumer is going to continue at this pace we've been on this summer. >> we've got to hit coinbase shares up sharply today. they're off the highs, but still up double digits the crypto exchange announcing a new partnership with blackrock that will allow its institutional clients to buy bitcoin. blackrock is worth more than $8 trillion under management. and for more is oppenheimer senior analyst owen lau. likes the stock. clearly this is a positive add some legitimacy to coinbase after what has been such a volatile ride with all the regulatory headwinds what do you do with this stock now? >> exactly first of all, thank you for having me, sara. what are we going to do with the stock? i think there is a lot more to

run for the stock. remember, for the first half of this year, coinbase stock down, i think, was mainly driven by the fed taking away massive liquidity from the market. so now we see coinbase start to diversify their offerings. they partner with blackrock. they are also trying to launch their nft and extend the nft they are trying to launch derivatives business so longer term we believe that coinbase can further diversify away just from retail trading. that's why we still like the stock. >> so the partnership obviously is great news to that endi, owen but what if crypto does not stabilize? isn't that the whole thing that determines the direction of this stock? >> theoretically speaking i disagree with that if you look at the trading pattern, they were highly correlated if you look at the historical pattern, during some crisis or

some kind of problematic situation, everything is looped together remember, coinbase charge fees even though bitcoin goes up or bitcoin goes down. so i would say in the near term there will be a pretty high correlation. but longer term when bitcoin can stabilize, coinbase does not rely too much on trading revenue. i think the stock would not correlate that much with bitcoin like last year we have seen so far. >> do you feel a little uncomfortable recommending a stock that is -- okay, i'll read you some stats quarter to date up 90% for the week, one week, up 42% but year to date is still down 65%. it's all over the place. >> right but to be fair, when you look at many stocks in the market, many growth stock in the market, they are all over the place, right? if you look at not just on the

crypto space, because right now i do feel like the market thinks the crypto names are high growth, the most speculative companies so that's why we see that volatility. but remember, bitcoin and also coinbase is only like 10 years old or 12 years old or so. when these industry matures, i do believe the volatility will decrease also, again, going back to the diversification point i just make, when coinbase starts to diversify, i think the correlation and volatility won't be that high. >> owen lau, thank you mike, i do wonder if you are seeing a short squeeze with this name as you get some positive catalysts? >> no doubt about it the stock went from 350 to 50 in seven months clearly it was a pile-on short because it was sort of a leveraged play on what was happening in crypto, things falling apart. so it has those dynamics in the meantime since the early

part of this year, 2022 earnings estimates have gone from $7 earnings a share down to a $7 loss per share there's a lot of noise in the accounting, but that just shows you it's mostly trading on sentiment, the partnerships and the fact that crypto itself prices are off the lows. >> so it's still in the ark innovation fund. it's helping that fund today, which is having a good day, up about a third of 1%. block is one of the big names set to report after the bell kate rooney joins us kate, what is a key number we should be watching after what has been a big week for fintech stocks >> block is venmo's competitor its growth rate tends to be what analysts focus on, it's a big line item. then you've got the square seller business. there's been a bit of a reversal there. this side of the business was actually growing faster than last quarter so we'll see if that continues then after pay, the buy now, pay

later business there has been a little fear around buy now pay later and credit exposure, finally bitcoin. block's crypto affiliation has been a bit of a negative for the share price this year and they may face an accounting charge which is known as an impairment from the crypto that's held on block's balance sheet. analysts are expecting a slowdown in the bitcoin trading side of the business as well back to you. >> kate rooney, thank you very much. we've got two minutes to go in the trading day mike, what are you seeing in the market internals >> definitely very mixed there's a lot of divergence below the surface today. take a look at new york stock exchange volumes it's now slightly more declining volume than advancing. that's been more or less 50-50 all day. the average stock is just below the flat line. take a look at new 52-week highs and lows on the nasdaq the nasdaq has been the outperformer that's not a number of new beg highs but the fact that we have

a switch -- multiple days of that would give some credence that this rally has a little durability to it the volatility index sagging further. very, very flat day at the index level, under 22 right here i wonder after we get that jobs number tomorrow and you get the opening market reaction if there's some air pockets below the vix here and maybe we get down toward that 20 level as we kind of settle into range bound summer trading, sara. >> mike, thank you as we head into the close, take a look at the dow. it has been as low as 160 earlier in the session we're down about 100 points. what's giving the most boost, 3m industrials are having a pretty decent day walmart and chevron are the biggest drags. the two worst performing sectors in the s&p are energy and consumer staples the best performing sectors, consumer discretionary, technology, industrials, communication services, all doing well and i mentioned this at the top of the show, it's a good day for the home builders. those stocks at the top of the market

why? lower interest rates 30-year mortgage rate goes below 5% we're also seeing strength in internet retail, the gold stocks are perking up today as bonds rally and the dollar sells off nasdaq is the only one of the big four that will go out with a gain, up 0.4 of 1% we're still holding gains for the week into a jobs friday. that does it for "closing bell." see you tomorrow now into "overtime" with scott wapner sara, thank you very much. welcome to "overtime," everybody. you just heard the bells we're just getting started here. in just a little bit i will speak to liz ann sonders on why she says fading part of this rally makes sense. she'll tell you why. the former square now called block reporting any second along with expedia, doordash, lyft and many more. the o.t. reporting crew as usual standing by to break in with those results. we'll show you the stock moves that always follow we begin with our talk of the tape, why this rally could last at least for the rest of