staying power in this economy. >> we shall see. of course they lost mario as one of their key executives over there. i'm sure they'll miss him. thanks for watching "power lunch," folks. >> "closing bell" starts right now. we'll see you tomorrow an upbeat start to the week has faded throughout the session. major averages wavering between gains and losses as we head toward the close the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen the dow now is barely positive s&p 500 down a quarter of 1% technology is underperforming. information technology the worst performing sector. that's what's dragging the nasdaq down about a quarter of 1% the semis, nvidia's warning, we'll hit on that in just a moment but that is taking its toll small caps doing well, up three-quarters of 1% today

if you look at what's working, here's the s&p 500 heat map. you've got materials on top of the market right now energy is also having a strong day. real estate stocks, communication services higher today, consumer discretionary also higher. some of the names like paramount, netflix, walt disney all lifting that communication services sector. technology is at the bottom thanks to the sell-off in semi stocks nvidia is down 8.3%. coming up on the show today, three takes on the inflation reduction act which did pass the senate this weekend. in just a moment we'll talk to the president of the national association of manufacturers who says the bill will, quote, stifle manufacturing investment in america plus former fed governor sarah bloom raskin will be here to discuss whether the legislation will live up to its name and bring noun inflation. and the ceo of sunnova will talk about the benefit to his

industry as the solar stocks get another big boost off of the passing of this. nvidia out with a warning on its second quarter earnings. mike santoli with a look at the name in today's dashboard and a ripple effect of what's happening. >> the overall nasdaq is absorbing this downside shock reasonably well. part of the reason is nvidia was already on a big slide one of the great wealth creators the prior couple of years. you see semis have not been leaders in this last little rebound. they participated. you have lost them as a real engine of the market, but nvidia down 14% over this span. now, you obviously see up here, that was when it had over $800 billion market cap it's down to just over $400 billion. it's still a double since before the pandemic and it's still maintaining a lot of the sector strength in terms of economic and cyclical bellwethers, take a

look at semis relative to transports in the overall market this goes back to the middle of last year. you've had a bit of a cyclical revival here the s&p 500 outperforming these things transports slightly outperforming semis. the old cyclicals, the old industrial bellwether doing a little better than semis right now. we'll see if this turns out to be the kind of thing where the market has to try to get it done without semis. we saw that micron warning and the market did okay afterward. maybe a lot of it has been discounted. >> i felt like that bad news were already in those stocks earnings overall, the chiefic quit strategist at goldman sachs today took down 2023 numbers earnings numbers from 6% growth to 3% growth so cut them in half i wonder if that is happening. because that's below consensus now on wall street as we try to grapple with this question on how far the market should be pricing in a recession. >> it's likely to roll through

the 2023 estimates i think during the reporting season. you saw the third and fourth quarter numbers come down. that's kind of expected at this point given we've decelerated and the fed has tightened. if you have 3% earnings growth next year, that usually means the market can find a way to hold together. if you see an absolute peak in profitability, that's when the market can't find its way out of that. >> and revenue growth is a lot stronger it's about those margins mike, we'll see you later, thank you very much. mike santoli with the dow up 23 points, financials just turned green. the senate passing the inflation reduction act over the weekend. sectors like evs are getting a boost and clean energy names like first solar are also green on the knows but jay timmons says the final bill will stifle manufacturing investment in this country he joins us in a first on cnbc interview. you guys have been among the

most vocal, you and private equity looks like they got their way, you did not, jay is it because of this 15% minimum tax on booked profits? >> yeah, so, sara, that obviously is going to be a drag on the economy i will say this, though. we were very successful in getting immediate expensing, if you will, accelerated depreciation protected from this minimum tax. senator kyrsten sinema from arizona was incredibly important in that effort and she helped us get that done. but the overall bill is going to cost the economy it is very and aptly named i know you're going to be talking to somebody else about that right after this. unfortunately, it's just going to suck money out of the economy that could be used by manufacturers for investment, job creation and most importantly right now wage growth >> so you mentioned it did -- you got that very key deduction preserved. so when you think about -- when you say that it's going to hurt

manufacturing and economic activity, can you be more specific what do you actually expect in terms of whose taxes will rise and what that will do to hiring and spending >> well, if youyou rewind the ck to 2017, we were very successful in comprehensive tax reform that year the following years we saw record amounts of investment, job creation in manufacturing and wage growth for two or three years in each of those categories, so we were very pleased that we were able to demonstrate that manufacturers would keep our promises that we made when that bill was enacted. now you're taking money out of the economy. several hundred billions of dollars that can be used to -- for instance, to invest in new plants and equipment that would actually help reduce the carbon footprint of manufacturers so to me when you're proposing a bill that is supposed to be helping with the environment, which is of course a laudable goal and we're happy to see that

that is a focus, by stopping or by curtailing manufacturers' ability to make those investments, it seems counterintuitive to the purpose of the bill. >> well, the administration might fight back you just got $53 billion in money to build semiconductor manufacturing in this country and i believe you're going to be at the white house tomorrow for the signing of that bill, the c.h.i.p.s. act so as far as investment in manufacturing, it's happening. >> so there is certainly good steps forward, there's no question about that. it seems to me that you want to take two steps forward instead of one step forward and one step back we don't really like being in the status quo we want to be moving ahead the c.h.i.p.s. bill is a great example of bipartisan efforts to solve a serious problem, and the problem of course is the production of semiconductor chips here in this country and those chips are in every single thing that is manufactured everything in our homes and our

cars, everything throughout society right now. so we were thrilled that that had bipartisan effort. we are really grateful for the president's leadership on the c.h.i.p.s. bill. on this particular bill, the reconciliation act, that was a purely partisan effort it did not accomplish what it -- completely what it needed to accomplish yes, there were some good things on the spending side of the ledger certainly but when you tax manufacturers to try to accomplish those goals, you're just not -- you're not taking two steps forward >> how many manufacturers are going to be affected isn't it trying to go after companies like amazon who biden always says doesn't pay any tax? >> well, look, i think that's a nice talking point the fact of the matter is many financial statements do not reflect the reality of taxable income and, you know, i appreciate the political statements that the

president and others make when trying to bash america's job creators i don't think it's particularly productive, to be honest and many of those companies have made investments i can't speak for amazon, they're not part of our organization, but i have 14,000 manufacturers that are attempting to invest in plants and facilities here in the united states in order to manufacture more in the united states and we did that, again, after 2017 and the tax reforms that supercharged the economy we want to keep doing that i'm afraid this bill is going to set us back. >> jay, how are the 14,000 manufacturers doing right now? we're trying to figure out are we in a recession, are we still in a post-covid boom, different sectors of the economy telling different stories. what are you hearing from your members as far as where we are in this cycle. >> i'm so happy i'm not an economist, sara, because i couldn't begin to describe what we're in right now what i can say is this we have a significant supply chain crisis going on right now.

much of that is because we can't find people to fill the jobs that we have open. we have about 800,000 jobs open in the sector. and if people are ordering goods from us and we don't have the people to actually make those goods, it creates a continuing problem with that supply chain of course inflation is a major factor there as well we had so much money that was percolating in the economy after the pandemic relief bills and we still have some sort of quantitative easing from the fed, so much money was flooding the economy that it's now trying to catch up. i don't see that as a long-term problem. most of my members don't either. but it is clearly very much a short-term problem right now the supply chain crisis itself is creating bottlenecks that we don't really know when those things are going to start easing, although we're starting to see a bit of that right now so, again, i don't know what to

call it, sara. i know most economists don't either let's just say it's not pretty out there right now, and we are hoping that things are going to get more stable in the months ahead. >> jay timmons, thank you for joining us national association of manufacturers. first reaction to the inflation row reduction act. the nasdaq is the underperformer shares of education technology company cheg are up 20% getting an extra boost on the back of earnings last week up next we'll talk to the company's ceo about those results and the broader environment for tech stocks.

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check out today's stealth mover. it's tyson foods getting grilled today after missing bottom line estimates for the third quarter. it is the worst s&p 500 stock right now. the company saying sales volumes decreased for pork and chicken due to a variety of factors, including labor and supply chain constraints and a fire at one of its chicken production facilities tyson also says chicken prices rose 20% from last year. but remember on friday we spoke to the ceo of wingstop who said they were dseeing meaningful deflation in chicken wing prices. check out shares of chegg. they have been outperforming over the past month jumping 16%. the stock took a leg higher after beating estimates.

joining us for a status check first on cnbc, is chegg's ceo. dan, good to have you back how are you? >> doing all right i have focused on chegg a lot lately because you're an interesting read on the changes in consumer behavior post covid. you had a big boom during covid as online education blossomed with some of your online higher ed homework help and then a huge dropoff on the reopening so what are you seeing right now, and what does it tell you about students and behaviors >> yeah, there's a lot we're seeing and you're right. so it's interesting, because we really -- the help we got with covid was more international and in the u.s. because students got help they couldn't any other way. last september about a million and a half students just didn't go back to college, so we've

been digging out of a hole since then but what we're seeing with summer school is a stronger summer school than expected. historically that's led to a better fall. we did not want to put that in our projections yesterday because we've been burned before we're seeing students tell us that they're thinking about taking college 12 months a year rather than a semester so they can take fewer classes during a semester so they can work. they take it over the summer where they can take less courses and do more hours. so all of those trends are good for us if they follow through. >> right this was a stock, dan, that was more than $110 last year. >> no, you don't. >> it's now in the 20s what are we going to see this fall now we've had a whole year almost since kids weren't going back to college post covid >> yeah, look, it's too early to predict, but the signs are stronger in that fafsa applications are up nearly 5%. we're seeing 85% of summer school students say they plan to

or have already enrolled in the fall and we're seeing significantly more students take summer school this year than last year because they're doing it online so they can both have a job and take classes. so that's all to chegg's advantage if it continues to go that way but as a company, as least as you know, sara, because you've followed us for a long time in the education space, we're the only profitable company. 50% of our ebitda or more goes to free cash flow and we're growing the top line again so the business is in shape to take advantage of any significant upside. >> i want to go broader with you because you like to dish on other tech companies, happenings from your coo at yahoo! days. the softbank had one of their biggest losses ever, almost $22 billion for the june quarter i'm just curious what you make of that? obviously they have had a lot of bad bets and technology has been hammered, but what kind of

ripple effect that will have across silicon valley, vc, startups, because they were such a force? >> yeah, look, i'm one of the few people that actually worked for masa i spun out zdnet, took it public under masa, sold it to c-net so i've known masa for a long time. >> that's right. >> but masa is only big bets he does nothing that doesn't have giant risk. and when they win, they win big. i remember with him one year when he became the richest person in the world next to bill gates. but when he loses, this is what happens. and i think -- you know, i think people forget that there are ups and there are downs in the market and so if you look at what softbank did, they actually try to invent a new model, which is put as much money as you can in, raise the valuations as much as you possibly can and then price out the second place person that

couldn't get the money like lyft versus uber. this has been his pattern for a long time. you know, we witwork, it's very clear that it doesn't work and is not sustainable if you follow it, you've got to get in and get out fast. i was never a believer in putting that much money in companies that didn't necessarily need it or spending it in a way that never produced a positive business. i think this will bring the industry back to normalcy. >> he said i am quite embarrassed, which is unusual to hear from him. >> it's very unusual to hear from him and it's very unusual for him to acknowledge it. but the reality is that anybody could have guessed -- you think about how much money he raised it had to be put to use. there weren't that many places you had to put hundreds of millions to work he had to put billions of dollars to work.

so they raised the value of these companies and you're seeing companies that went public with spacs or before they were ready this is some of the result of that kind of behavior. >> yeah, big bets gone bad, i guess. dan, thank you for weighing in always good to talk to you. >> thanks for having us. bye, sara. wall street is buzzing about a big shakp pva eiteuatritequy a big (woman vo) eiteuatritequy giant sailing a great river past extraordinary landscapes stepping dow

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what is wall street buzzing about today? an abrupt management change at private equity giant carlisle group. the ceo unexpectedly steps down. leslie picker has some new details. leslie what, do we know? >> so this is an ongoing situation. it's not exactly clear why lee is leaving however, i just received an internal memo sent to carlisle employees by co-founder bill conway he plans to take over as interim ceo and also held a virtual town

hall earlier this morning. based on that memo, some additional reporting, it appears that he intends to execute the strategic plan that lee laid and their ceo search will prioritize candidates with a, quote, demonstrated track record of leading global companies so perhaps someone outside the firm with c-suite experience shares are 6% lower on the news today, sinking the stock deeper into underperformance relative to its private equity peers in 2022 the market clearly caught off guard as the company reported 2q earnings ten days ago with no hint at a management shift instead this was a sunday night announcement with lee giving up his c-suite and board seat his contract was set to expire at the end of the year i'm told some turn in

negotiations likely led to the shift but the private industry showing succession beyond the founders not an easy thing to do, sara. >> right so this is a company, leslie, that has three founders on the board, which could make it tricky when it comes to negotiations it adds in another layer at least when it comes to leadership. >> no, that's right. i'm told there was unanimous support and this was a mutually agreed upon decision unanimous support from the board of directors as well as lee himself to part ways here. however, i was also told by another person familiar with the matter that some independent board members were a little more reticent about the decision. however, ultimately did agree for this move to take place. so yes, as these private equity firms are often structured, there is still a lot of founder involvement. we saw this with apollo, kind of see it with carlisle now today, so it's just an ongoing thing that these next generation

private equity firms have to grapple with. >> seems like there's more digging to do there. leslie, thank you for bringing us some of the reporting that you've got leslie picker. after the break, we'll talk to former fed governor sarah bloom raskin she's back, and why she says the fed should pay attention to the inflation reduction act and whether legislation will live up to its name.

the dow is up 32 points. stay with us

the inflation reduction act just pad the senate on sunday. it includes $369 billion for energy and climate initiatives, making it the largest climate package in u.s. history. joining us now, the former federal reserve governor and cnbc contributor sarah bloom raskin she's currently a professor of law at duke university great to see you again, sarah, welcome back. >> nice to see you, sara eisen. >> and sarah bloom raskin, you are now focused on climate and economics i know as well and how that relates to the economy and our central bank what do you make of this legislation? does it go far enough for you? >> well, i'll tell you, this legislation, this inflation reduction act, sara, is really an important catalyst in being able to transition to an economy that is going to be, that should

be really more resilient and really how fiscal action can play a role in creating a more resilient economy. and that's actually critical what do we mean -- you know, what do we mean by resilient we essentially mean an economy that can snap back from supply chain problems, an economy that can deal with productivity losses that are keeping prices high an rising so it's a very important piece of legislation. >> so you actually think, what, that it's a stimulative for our economy to be spending in these parts? because the republicans and we just talked to the national association of manufacturing that said it's a tax and it's going to hurt economic growth. >> i think it's probably going to do the opposite it's not actually something that i would view as a stimulative on the demand side, but something that is going to really help on

the supply side. as you know, our economy has been buffeted by supply shocks, right, stemming from different sources. we've dealt with a pandemic. we have dealt with the effects of climate we have dealt with geopolitical uncertainty that has created these supply shocksthat are really quite sticky and that are in essence driving some of our high inflation what i think that this fiscal package has the potential to do is to actually deal with that kind of chronic damage to the supply side that we have been experiencing in the u.s. economy and the package of tax credits, of different mechanisms that can deal with the erosion from climate i think is particularly significant here. >> but it doesn't help us with the immediate inflation problem, sarah, does it >> well, it depends on how you

understand inflation, right? inflation has both a supply side dimension and a demand side dimension. the demand side dimension is the side that the fed is focused on. and the fed has tools that deal with the demand side channel of inflation. but when it comes to the supply side drivers of inflation, that is really the role of congress and so what you see in this package, in this inflation reduction act through the provisions that are addressing climate in particular is you see this attempt to actually deal with some of the supply side drivers to inflation >> how should the fed look at this should it factor in at all they have got a real predicament with a weakening demand picture and inflation, which we think might be starting to cool down we'll get a cti report on wednesday. but clearly they're caught between the growth and inflation sides of the mandate, or jobs and inflation. >> exactly and the fed is going to pay

attention, as it does, to every major piece of legislation this one in fact has the potential to be a major piece of legislation, assuming it's enacted, and it has at its core these incentives that when taken up are going to -- you have the promise anyway of being able to deal with some of the supply side stickiness. that of course the fed realizes is also a component of what is driving inflation right now. and inflation, as you know, sara, is well within the fed's mandate. so while the fed can't do anything directly on climate, it certainly has to be paying attention. >> where are you right now on the fed and fed policy do you worry more about the fed being too aggressive on tightening and choking off any recovery and hurting employment or the opposite, and not doing enough on inflation? >> right so the fed has, as you know and

as we've talked about numerous times a very important dual mandate, both on the price stability side which goes to inflation and of course to the employment side. we saw in the recent job numbers that the job growth is continuing at a very good pace, but we've got inflation that is really much too high and the fed has been taking on these price hikes in a quite aggressive way trying to get ahead of the curve before any inflationary expectations get baked in so you're seeing the fed really attempt to move ahead on the inflation part of its mandate and it has room to do that because, of course, it hasn't done anything that has triggered something that is going to look like a significant set of numbers on job losses. >> i'm not sure we've ever -- i don't know, maybe i'm wrong, you tell me. have we ever heard any member of the fed or the fed chair acknowledge anything about climate and the impact -- you're

talking about how it's a clear impact on supply side inflation. i'm not sure that they go there or we necessarily want them to go there, do we, sarah >> we don't want them to do anything that would somehow compromise their independence. certainly they are not going to engage in climate policy that is way outside the realm of fed policy but what the fed does need to do in its focus on the dual mandate, it has to look at the drivers of what are driving employment and driving inflation, right so it looks, and its economists look very carefully at what could actually be keeping supply side shocks from being able to move -- to move us quickly so in other words, we need to see -- we need to see and we need to understand whether or not these inflation shocks are going to be sticky or whether they're going to be transitory and the fed is very well focused on that, as they must, as they

do their projections and figure out how to use their tools. >> no more transitory talk that's a bad word these days sarah bloom raskin, thank you. it's good to talk to you again hope to see you back again soon. >> yep, bye-bye. >> we'll talk much more about the inflation reduction act in the market zone when we're joined by the ceo of sunnova the dow is up 36 points. the s&p 500 off its lows we've got some groups going positive here on the s&p just in the last few moments financials joining in on the rally. rally. material and skyscrapers, but teams who make it all possible. after all... we wouldn't be where we are today without them. so we made sure that like these buildings... their futures may also stand the test of time. ♪ ♪

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welcome back s&p 500 little change. check out the top search tickers on cnbc.com. 10-year note yield is in the top spot, buying treasuries today putting a little pressure on yields 2.76 with the 10-year. nvidia after the profit warning sending shares down 6% palantir with a rough quarter. that is down 14% tesla is up a little bit, a little less than half a percent. look at bed, bath and beyond, up 34%. amc entertainment up almost 7% definitely a meme trade kind of day. meme retail back in the buying mode gamestop up 8.25%. all of those meme names heavily shorted having a surge today. up next, morgan stanley's jim lecamp explains why this summer strength is all the hallmarks of a bear market rally. plus much more on nvidia and

p palantir when we take you inside the market zone, next.

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so you can be prepared for whatever is headed your way. we are now in the "closing bell" market zone. jim lecamp is here to break down these crucial moments of the trading day. plus we've got kristina partsinevelos on nvidia's warning and john berger back to talk about the senate passing the inflation reduction act. we'll kick it off with the market, though the nasdaq is under a little pressure because of nvidia, which we'll hit in just a moment some of the semi stocks are lower today, which is the communication services stocks going the other way. interesting, because sometimes those two move in the same direction. real estate, energy, materials at the top of the market jim, you say it looks like a bear market rally. so are you telling your clients to fade the strength

>> sara, this has all the ingredients. whether it's positioning by commodity trading advisers, whether it's the polls of the american association of individual investors, you took all of those and you had the highest level of bearishness ever so that sets the stage. all you need is a little positive spike, positive piece of news and you'll get a spike in the market and those include short covering what was the spike we had an interpretation of jerome powell's comments that seemed to insinuate that he might not get to 3.5% on the fed funds rate that eased some of the fears then you had earnings. earnings came in better than expected 70% beat rate, all of a sudden the market is trading up and breaks above the 50-day moving average, which was a key technical level. now you have fear of missing out. that's a classic look of a bear market rally now, it doesn't mean the market

is always going to do what it does historically. it doesn't mean that this can't be the onset of a new bull market but it sure looks like a bear market rally. we're sitting in front of august, which has been our worst month over the last -- really since the mid-'80s and you had september, which is historically the worst month we have all of that in front of us we have a market that's made a big move all i'm suggesting is i think a retest is likely and investors need to be careful about buying in here. you should use a rally like this to sell some stuff that you're trying to get rid of you don't want the cheese anymore, you want out of the trap and use an ensuing sell-off if you get one, to nibble at things you've been wanting to own i think investors have to be careful and the semiconductor index is starting to roll over as well. >> let's talk about semis, because nvidia shares falling sharply. the company saying its q2 revenue will come in below wall street expectations.

nvidia is also saying its data center division has been hurt by supply chain issues. the cfo saying she believes the long-term gross margins should remain intact. kristina partsinevelos joins us. why should this announcement come as a surprise to investors? >> that's because gpu units have been dropping in price for quite some time. there's been a lot of warnings around weakness in gaming, around weakness in pcs so yes, the street was expecting some type of reset it's the magnitude of this reset we're seeing with nvidia that's concerning the fact that gaming fell 44% quarter over quarter you mentioned data center revenue. it climbed 1%. it's pretty strong but a little weaker than anticipated. luckily the problem had to do with supply and not demand there's two key points going forward. one, what we're seeing across a lot of chip makers is they're shifting your attention away from their units that are exposed to weakness, like pc handsets, gaming falls into that mix as well and shifting your

focus toward data centric segments that are expected to grow that would be ai, auto and data centers fall into that mix as well so we're seeing that shift quite a bit. the second major point too with a lot of these companies is has the stock dropped enough where the fundamentals are in play, it's a reset and good entry point. that's what investors were looking for. micron, western digital, qualcomm all lowering their outlooks and expectations. so might need a little more time for that reset, sara. >> bottom line, though, kristina, it is cyclical, though, right? it is a cyclically sensitive sector. >> 100% although many ceos and executives will likely argue with me and say that's not the case. >> got it. well, the transports have been outperforming them as mike santoli noted earlier. another name deep in the red today is palantir. revenue beat estimates but

earnings were slightly below wall street forecasts. guidance was also weak the cfo blaming that on lumpiness of government work frank holland here with more frank, what's the reason the stock is hit so hard, down 14, 15%? >> well, sara, it's really not that complicated it's that soft guidance. that lumpiness comment was confirming the fears of many investors according to analysts. there's a lot of concerns about the inconsistency of government work and the fact that it's kinda sometimes hard to forecast it can always be hard to forecast a lot of people may have forgotten about this, but people on wall street haven't remember that $10 billion jedi contract amazon battled over and it was broken into smaller pieces that's something that hangs over this stock the idea that government work can change or shift whether it's due to an election or something else that happens in d.c you have to remember that palantir gets 80% of its revenue

from government contracts. >> frank holland, thanks very much si solar stocks -- one of the producers joins us now, john berger john, i know you were excited when we got word of this deal and i'm sure you're very happy that it passed the senate. what do you hear about prospects in the house >> we're hearing that prospects are very good. i think the expectations are that it would pass the house by friday and then be sent to the president's desk fairly quickly. so we're very optimistic i think at this point in time it's a 90% plus probability that this does indeed pass. i know there was some skepticism last time i was on the show. as we said, we felt pretty confident that it would pass there's a lot of reasons to do this it does reduce inflation, adds more energy supply to lower power bills for really a broader set of folks, really addresses

some of the disadvantaged communities in the country and then also for the first time gives investors certainty. in my entire career, the solar industry has never had certainty of policy. we're now going to get that with ten years plus of certainty. so this is something to be really celebrated as it hopefully passes the house here in the next couple of days. >> so you -- when we talked last, we talked about how it helps you from a government regulation perspective because there is a part of this bill, explain it to us, that speeds up permits for investing in climate technologies like yours, right how does that work >> well, there's a lot of moving pieces and not all of this bill addressed solar specifically but essentially there are varying levels of investment tax credits. so right now the investment tax credits are basically how much you can take off the cost of a solar system that would include

possibly batteries, ev charging, those kind of technologies it takes about 26% off that cost this is now going to go to 30% however, if you're in a disadvantaged community, there's another portion that could be 50% off. with some domestic content, so manufacturing is a big, big piece of this. it's a huge win to bring that manufacturing, this important industry that is solar and batteries home to the united states there's going to be another 10% for the domestic content there and another 10% for some other communities that are hydro carbon based and such. so there's a lot in here that's really addressing some of the key long-term problems that we've had. certainty of policy not just on the tax side of things but also on the trade side of things, the national security side of things bringing that industry home will eliminate a lot of these tariff fights that have hung over the industry if not over the last decade. >> are you part of the national association of manufacturers

we talked to jay timmons at the top of the hour and they are against this bill and say that it will raise costs for manufacturers. clearly the big ones that are going to face higher tax bills as a result. but if it boosts manufacturing in your industry in this country, i would think that might offset it. >> it sure does. we are a member of the solar manufacturing alliance, even though we do not manufacture, we never will manufacture, but we just view this as a national security important industry, just like the semiconductor industry and that c.h.i.p.s. bill that was passed a week ago. this is just as important. the semiconductor industry is our cousin industry if you will. bringing those jobs here will absolutely be important to the country and absolutely reduce the amount of risk it's something, again, we need to do as a country to address really the global energy crisis and make sure that the manufacturing and those jobs,

that the technologies that go with solar batteries, fuel cells and other technologies are actually improved and invented here in the united states versus elsewhere. >> so, john, what's the timeline here because obviously your stock has been bid up a lot on news of this happening when can we expect -- when can you expect to see this actually drive revenue and a surge in business, which is what the market and you were expecting? >> well, over the weekend we actually started swinging to action here. we've got to see the final bill. again, that's got to pass the house and receive the president's signature. but again, we're very confident that it will pass the house and confident that the president will sign it so we've already begun to make some changes versus some of the changes in laws that are passed within this bill to accommodate and really open up the spigot, if you will, as far as growth here i really feel like that this

bill cements the fact that this company and the industry is going to be something that's recession-proof. that we are going to grow through this quite strongly. whatever the recession, however deep it is or isn't. but we're going to be able to grow through this in a very strong fashion so we expect to see some additional revenue pick up as soon as later on this year, and certainly into 2023 we'll see significant growth from what we had previously expected. >> john, thank you for joining us with that reaction. john berger. how this new bill affects the solar industry from sunnova. jim lacamp, would you make any portfolio moves based on this legislation? >> well, i really think this is an interesting time because of the structure of this bill you're starting to see a lot of these stocks break out what we've seen energy stocks do really, really well, way above the market over the last year and a half, fossil fuel energy

stocks, now it looks like these stocks are saying this is a serious bill, these stocks can make a serious run just look at the benefits tesla got from government help, tax credits. so i think this is a new dynamic. i also think it helps fossil fuels because you need fossil fuels to mine the lithium for the machinery, to mine the copper so i don't think the fossil fuel story is over as far as stocks are concerned, but now these stocks will have a new leg higher. >> so your overall take, jim, is that you would fade the rally. you think it's classic bear market and investors should take their profits now. is there a sector, or type of stock, though, that you might recommend? we don't know if we're in a recession, just this environment that we're in with the fed hiking interest rates, the inflationary problem and the softness in demand >> sara, i think the real story moving forward is a different one than what we've seen the last three decades that is that commodities will be a really big part of our

investment themes moving forward. look at what's happening in russia, ukraine, denmark and all of these areas where governments are getting involved with commodity distribution i think that's going to be our play in the short run, i think you have to look at taking technology profits off the table. they have had a very, very big run and we're going to run right into the 200-day moving average. it doesn't mean you have to do it today look for signs of it, though, and be very, very careful with those names. >> thank you very much jim lacamp, it's good to have you here from morgan stanley wealth management. you're seeing oil tick up 1.8% energy stocks are up half a percent. the dow is up zt 0.1 of 1%. a general start to the week positive coming off of last week disney, home depot and honeywell are helping the dow. disney adding 16 points to the dow, still down 30% year to date s&p 500 a little unchanged it's down 0.1 of 1%.

financials, industrials and staples are lower. real estate, materials, energy, communication services higher on the day. nasdaq 100 down one-third of 1%. nvidia, apple, amd, qualcomm, those are the losers dragging on the nasdaq that's going to do it for me on "closing bell. see you tomorrow i'll send it into "overtime" now with michael santoli mike welcome to "overtime." i'm mike santoli in for scott wapner you just heard the bell. we are just getting started. in moments we'll get quarterly results from take-two interactive and upstart as soon as those earnings hit. plus, more on that bombshell out of nvidia. the company reporting a big revenue miss stacy rasgon is standing by to break down the fallout. we begin with the talk of the tape are the bulls winning the battle for where the market is headed