there we go. dow down fractionally, the s&p down 0.5%, the nasdaq hardest hit, chip stocks weighing on the nasdaq down 1.5% that is going to do it for "the halftime report. "the exchange" with kelly evans begins right now. >> thank you very much, frank. hi, everybody. here's what's ahead this hour. are the meme stocks making a comeback bed, bath & beyond shares have doubled. is it actually a good sign for the markets? and this time where is all the cash coming from we will dive into all of that. plus the chips act is signed into law but the chip stocks tumbling for a second straight day and you are seeing the affect on the nasdaq nvidia down, now micron out with a revenue warnings one of the key senators involved about how soon and how much this will actually help u.s. chip companies. and some big movers about to report their results like

coinbase, roblox and wynn resorts up double digits this month. will their momentum continue or hit an earnings reality check. that's all ahead for to dom chu with the latest numbers. >> very much in the red right now, as opposed to the mixed picture we saw earlier, kelly, and by the way, what you're seeing right now here is just about session los for about the entire part of the market here we'll get to the numbers after we get through the top lines the dow industrials down 22 points very flat but losing a little bit of steam here. the s&p 500, again, near session lows at the lows we were down 23 points, 3 points at the high a down day overall for the s&p 4119 the last trade off one half of one percent the nasdaq composite off nearly 1.5% the epicenter, that and small caps the nvidia warning from yesterday, it is the micron

warning today. semiconductor stocks very much in focus given some of the revenue outlooks and profit outlooks from two big brand name semiconductor companies. so nvidia is off another 5.5% after big losses yesterday micron down 5.25% on its warning. lamm research and applied micro are some of the biggest laggards in the s&p 500 keep an eye on the chip stocks they have been viewed as the leading indicator of the broader trade over the course of the last several months. one other place to watch is what's happening with bitcoin. we got commentary from some trading desks, jpmorgan and others, about maybe this bottoming process happening right now with bitcoin prices. earlier this week. bitcoin is below 24,000, 23,089 off 3.5% the reason it's kind of important some traders are eyeing this level here on the upside about 24,000.

that was the high end of the range that we've seen for the last couple months here. if we were to break out above it maybe it poretell morse upside, but kind of drift to the downside here, might just say that, a, maybe the bottom is not in yet, so watching that 24,000, that's the reason why some traders are scrutinizing that level. we'll keep an eye on the bitcoin prices >> thank you very much tomorrow's cpi report seen as a key indicator of the fed and market's next moves. it was the hotter read in june that sparked the fed's first 75 basis points rate hike we've seen inflation expectations cooling and speculation swirling over whether tomorrow's data will bring any further signs of relief my next guest says don't bet on the fed easing up soon and he's got names that will do well regardless joining me is brian with cronkite, great name, managing director at all spring investments and portfolio manager of their fund. let me start with why you don't think that they're going to let up any time soon and that would

be fine for stocks or makes you cautious generally speaking? >> yeah. hi, kelly. good to be with you. i think the market is krtradingn the volatility of when the fed might pivot. the cpi number, is the number too hot or too cold that would change the path of the fed in the near term and the answer is no the social and political fed today is more worried about the ramifications of inflation staying to strong than they are about a demand driven recession. from my standpoint the path of the fed is likely higher for lo longer than the market's price of the day and the idea of fed cuts in 2023 seems misplaced to me. looking for the fed to be higher for longer and owning stocks that are indifferent. >> it's been interesting to watch the market do pretty well since the mid-june meeting where they did the rate hike and we've had another one, stocks are up, commodities down it's kind of moved in the way

that you would hope it were moving if the moves were improving financial market conditions i don't know if that means stocks can keep rallying or not from here if they have to price in a hawkish trajectory. >> yeah. i think the idea for our portfolio management is to build a portfolio relatively immune to those. you want to own stocks they can control their own destiny, finding companies that have unique position balance sheets, that will provide companies with protection if they need it, but also the optionality to play offense. we want companies that can go out and make acquisition, invest in organic growth, so if you look at the market as a whole you can begin to misread what the opportunities are out there. we see a market that is going to start to create more volatility, less correlation and more opportunity for stocks. >> couple of the names somewhat familiar we hear about these more when talking about the infrastructure bill or things like that, vol ken, mass tech,

reynolds consumer products, tell me why they jump out to you. >> all of our companies have one or two things, demand drivers we think that are speculation nary in nature and will withstand a small recession or, two, will win the margin game. we think the top of the market will switch from demand to margins in the future. we want to be on the right side of that. vol ken, people tie it to a cyclical market, highway construction cyclical over time, but the demand and demographics and highway bill we think will keep demand high tremendous pricing power, squeezing the margins to the diesel and we believe margins stay strong a balance sheet perspective, they have a chance to sell noncore assets and invest back in the core business that combination sets up nicely for the next 12 to 18 months >> stocks that can shape their own destiny. not just about the fed thank you for your time today.

>> appreciate. it let's talk about the meme stocks shouldn't this all have been left for dead after the fed started draining liquidity out of the markets the huge moves we're seeing in three meme names the og, gamestop, the shares surging over the past two years, up 3700% now the record intraday price, $95 at the height of meme mania, down to $40 right now. about halfway down from the highs and some ways you can say it's held up better than expected and other ways, the question of whether there's going to be return for people in the shares now the next one is amc. while it's up 370% since august 2020, those shares peaked last june and have generally been on a downtrend until recently as for bed, bath & beyond, the shares don't have any gains to show for themselves, down 27% over the past two years, even accounting for the 40% surge we saw yesterday. it's already giving that back about 15% today to back below $10 a share.

what's been driving the resurgence of some of these stocks let's bring in jeff killburg at sanctuary wealth and a cnbc contributor and joined by our own bob pisani welcome to you both. bob, i'll start with you, what are the traders saying about these moves? >> the most obvious explanation this is a return of more speculative activity that is not necessarily welcomed the fed will notice this kind of thing if it goes on, but i would notice, friday we were 39 in game stop and went to 48 yesterday and 39 40 today they're selling into this. maybe that's good news when this happened a year and a half ago people said, isn't this a sign that fundamentals don't matter with gamestop they're not trading on fundamentals you can get stocks move outside of fundamentals, this happens frequently in the 1990s art crawford a friend of cnbc came on with finally astrollology in the long run the reason you own stocks for 400 years is for

a future stream of dividends and potentially earnings that could turn into dividends some kind of cashback i don't think that's going to change for a vast part of the stock market >> although jeff, part of the fun has been watching the retail armies use messaging forums, social media, to basically try to have the same kind of left and fire power that the big money has and to take them on and this whole kind of battle of the two. how much is that factoring in, if al? >> you're right, kelly i think they did chock up a win. the retail investors chocked up a victory when they got short hedge funds squeezed out last january. as football season is a couple weeks ago, you have to talk about a trick play that was a trick play. you did see reddit and a variety gathered together and pushed markets higher and squeezed the biggest hedge funds throughout i don't think you can run the same play. so you have to feel like deja vu i thought dom brought up an

interesting point about bitcoin bottoming. a lot of euphoria and enthusiasm we will have a deja vu in the meme stocks butyou have to loo at the fundamentals. bob is 100% right, the fundamentals are thin. we talk about what important metric in a company, operating income it's negative in gamestop. but if you want to buckle your chin strap you can trade here. there's support potentially on the chart at $34 whether you talk about all these stocks, amc, bed, bath & beyond. bed, bath & beyond is interesting. elon musk may wake up and get one of the 20% discount flyers and decide to buy it this is a high beta. if you're a trader and use stops hop in the water is warm. if you're talking long-term investment like bob was, i think you stay away from the first two names and if you want to take a bet, bet on bed, bath and beyond being bought for a lot of reasons but not the fact that they're making money. >> we wonder where all the money is coming from this time around

or if this is sustainable. people like jeff was saying, it has to be some kind of good sign if there's interest in meme stocks and crypto. these are liquidity gauges if you want to call it that, momentum gauges, signs of life for the broader market. >> right with the s&p up 10% in the last few weeks this is a sign of a return of more speculative activity i don't think it's a very good sign overall i think the market, the fed certainly wants to see more subdued speculative activity i want to comment on the shorts interest story this makes sense to me what you need is a critical mass of people who can move and buy sufficient amount. enough get together and say the short interest is very high here and if all of us get together we might be able to force some people to cover the shorts and drive the price up this is not an absurd observation, not insane at all but it does nothing to improve the fundamental outlook of the company itself that's kind of what you're interested in here, long term, you're interested in the

fundamental outlook. >> bob, remember, bob, that's illegal. that's illegal to do if you're a hedge fund this is retail investors, unregulated, a different scenario here. >> right but no one is going to -- the sec is not going to go after the reddit crowd for manipulation of the stock. i think that's highly unlikely that will happen. >> agreed. >> maybe on a hedge fund, you get more organized, but not in a reddit crowd this was not absurd. my point here is the idea that the reddit crowd had the initial observation you brought up, there's an awful heavy short interest here and enough of us get together we can make a difference, that made some sense. again, it doesn't change the fundamentals at all. uli, they had layoffs at gamestop recently. everything they've been trying has not been successful. amc is talking about a special dividend at least they have something to move the stock on a fundamental basis. i don't see it at gamestop. >> last word, jeff >> you have to understand, this

isn't musical chairs a lot lost a lot of money but a lot of people have made money when you saw the meme stocks take off like every movie out there, the sequel is never as good as the original buyer beware, buyer beware. >> less interesting. guys thank you very much jeff and bob, appreciate it as we watch the meme stocks. coming up senator maria cantwell joins us on the singh of the chips act, but the semis are under pressure as micron becomes the latest to cut its guidance can the subsidies spark a turnaround a quarter top remember for coinbase and roblox. even wynn. can they keep up the momentum after the bell as we head to break, another look at the markets which dom said are near session lows the nasdaq down 1.5% under pressure from the clips but the russell 2000 small caps the worst performers down 1.75%. we're back after this.

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welcome back to "the exchange." the chip stocks among the worst performers on the session with intel down 3%, micron, amd, nvidia down 5% micron followed nvidia's comment

tatery, warning of a slow down, from pc to gaming. micron did announce a $40 billion investment in domestic manufacturing after president biden signed the chips and science act into law just this morning. the white house claims there's more to come saying the new legislation, which allocates more than 52 there be to u.s. chip production, will, quote, unlock hundreds of billions more in private industry spending joining me now, is the senator that led negotiations, maria cantwell, democrat from washington state, and chair of the senate commerce committee. welcome. >> thank you. >> are we sure intel is going to be the best steward of all of these funds? just looking at the fact that its shares peaked and have fallen in half over the past 18 months, you know their struggles better than i. >> well, there's a lot going on here in what you're saying about the numbers, but, you know, first of all, the third quarter is never a great quarter for technology if you think about it, people are out and about and not inside buying product, and secondly, we

know that intel is doing everything it can to make investment in what will make it the leader in chip design, so the ceo has said we're not doing stock buybacks and we're making this investment. that might affect the market for a while. but the story today is the united states is sending a big message that we're going to invest in bringing the manufacturing sector of semiconductors back to the united states, growing our percentage of that because we have supply chain problems, and making sure that we have the science and technology to lead in the next generation of design so that we know this is investment today, jobs tomorrow. these numbers, they will have good numbers and this is the right investment >> the timing of this, the irony, struck me as well with speaker pelosi's trip to taiwan. this will, arguably, make the u.s. less dependent on taiwan for the manufacturing of chips that nvidia and amd and others make so at the same time that we're

sort of more vociferousry backing taiwan we're moving our supply chain away from them in this key area. >> any time you're 80% dependent on something it's not a good idea if you have risks to that supply the pandemic showed us we do have vulnerabilities in our supply chain so the united states now wants to up its percentage of manufacturing in supply and also, again, the best in design. the next ideas that integrate big data ai into delivery, driverless cars, precision agriculture, and new medical devices, to do that we have to make sure the ecosystem of chips is here in the united states and we have really slipped down to 12% over the last decade not a position we want to be in. >> absolutely. i think it was 80% or something like that in the past and intel used to be one of the most incredible companies in america. let me just ask you as well, as we look to move this entire

industry, more or less, onshore it, is there a precedent for success in something like this i don't know what the correct, you know, term is for industrial, you know, some sort of industrial national strategic program, but do we know that this will succeed? >> well, this is really about investment this is about investment tax credit which we've done investment tax credits for solar and wind and we can see we've created more of that economy here we're investing now in that for the smart grid so that our grid system can integrate at the white house ceremony was an entrepreneur talking about concurrent -- i think that was the name, maybe just current -- he's come up with a technology that basically can recharge cars on the spot without infrastructure, you know, the physical infrastructure around so a great idea. so what we're going to do is, with this investment and lots of investment by the private

sector, make us the hub again of this innovation. so the more that we're pouring in and getting the collaboration between business and universities and the national science foundation, the more that collaboration produces results for the united states, the more people want to be on the cutting edge, the more they want to come here. so it is really trying to turn the tide and saying there's a new day in america when it comes to semiconductor manufacturing and that day is going to be an investment by all of us to make sure that we continue to lead in this particular area. >> i hope you're right i hope it works. it reminds me a little bit of who is it, kaiser, during world war ii who had to pivot into ship building and managed to do it just pull off these incredible feats of engineering in a short period of time with a big program behind him you've raised energy, so i just wanted to ask you as well about whether we need a similar investment you're an expert in this space, obviously, and have been for years.

do we need a similar effort in our domestic energy infrastructure right now because when i look at the headlines coming from europe and -- i mean it's pretty scary some of the stuff going on right now and while we appreciate that we're doing clean energy investments, just shoring up the grid in general, do we need a program of a similar scale to make sure that bills aren't going to spike and we're not going to have outages? >> well, the chip investment really is by us a very small investment compared to what private sector is going to put in the reason why is -- why is it necessary? the type of incentives offered by taiwan and korea and now europe, we have to be competitive in making sure that manufacturing base does remain in the united states and on energy, while we have made similar investments in the i.t., one of the things we passed in the senate on the way to the house, is to further incent the movement towards a sustainable aviation fuel.

this is a big part of emissions, big part of our transportation fuel sector costs. we know it's too costly and raises prices on people. if we can make a troigs to cleaner, sustainable jet fuel that will be a big change in the economy. the chips bill, the chips and science, has an investment in our national labs to look at test bed technology, technology that can be deployed and scaled like advanced aviation sustainable fuels, and other concepts that actually small nuclear reactors, a whole variety of things, that will be part of the next generation of energy to help us diversify off of more, you know, polluting energy sources >> yeah. >> so we just know this about the united states, if you invest in innovation, chances are -- and even if you think about it, the natural gas innovations that have happened, happened because

government r&d that led people to understand what was next with natural gas. >> i will hear from the industry now wait a minute. it wasn't just the government. >> well, not just -- not just them it's a partnership but it's always a partnership. that's what's so unique about the united states, is that we have a partnership the things that can't be done by the private sector, harder to tackle, we take those on whether at darpa or department of energy or other places. there's a lot of technology, this great report that ernie and bill gates wrote a couple years ago, the next energy cites technology developments that will happen and how we can take advantage of them. >> senator cantwell, thanks for your time today. great to have you. >> thank you joining me from capitol hill still ahead, take two's net loss and nvidia's revenue warning weighing on both as the two companies point to a slowdown in the gaming sector

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welcome back to "the exchange." nasdaq is down 1.4%, pushed lower by the under performance of a lot of chip names today the s&p down 0.5% as it looks to try to avoid a four-day losing streak and the dow is down 23 points let's get to bertha coombs for a cnbc news update. >> hey, kelly. trump supporters outside mar-a-lago protesting the fbi's search of a property yesterday

they may get what they want. a source close to the former president said if he wasn't running before he is now, because he is angry, they can add this to him. in a tweet today, trump's vice president, mike pence, writes he shares the deep concern of millions of americans what he calls the unprecedented search of a former president's personal residence house package expects to receive trump's tax returns now that a panel of d.c.'s court has upheld a lower court's decision that congress has a right to see them trump can ask the full appeals court or the supreme court to take the case. lamont dozer, one of the writers of the motown song writing and producing team is dead at 81 among their many timeless songs, 15 of them that hit number one,

"you can't hurry love" "heat wave" and number one hits in the u.s. including "stop in the name of love. those are like the best songs to have. >> we want to belt it out. ♪ before you break my heart ♪ >> going to be in my head. thank you very much for bringing that to us still ahead, coinbase, roblox and wynn on deck with results, down big for the year look at the last quarter and it's leading the rebound up more than 90% near term options say this could be a 20% move from here. the question, of course, is in which direction. we've got the action, the story, and the trade, all three, next. in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it.

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welcome back to "the exchange." we're more than half way through earnings season and a look at the action, story and trade on three names expected to report a loss today, despite the earnings season moniker all big movers, though start with coinbase. the crypto trading platform has been on a big meme fueled if you want to call that's short squeeze ride lately.

22% short interest in the stock. it's up 50% the past month but now down 10% into tonight's print. can they show strong trading volumes despite the drop kay rooney has the story jeff mill has our trade, who is a cnbc contributor welcome to both of you what are you watching? >> it's interesting, coinbase has a lot of their data sort of out there. it's kind of a foregone conclusion when it comes to the second quarter because you can look at trading data and analysts say they already know what trading volume looked like a couple estimates out there saying that it's likely down 30%, but the expectation is that trading slowed down with some of the crypto prices coming down as well coinbase warned about this and told investors to expect a slower second quarter. trading volume down, account growth likely taking a hit as crypto prices come down and that all affects transaction beat revenue which is the bulk of coinbase's bottom line

that is the bad news and what people are expecting the thing that investors don't know and they will be looking for within that print is something called the mix that's the makeup of the retail versus the institutional side of the business retail tends to bring higher fees the institutional side is more interesting because of the black rookie partnership more interest in that. then something that's the spread that coinbase earns per transaction. a lot of investors have been closely following that the bear case on coinbase has been the fees and take rate will come down with a lot more competition, ftx, robinhood, getting more into crypto, so that's been a fear in the investor community the bull case, though, on the other hand is that coinbase has really been trying to move beyond trading and diversifying revenue. if we hear anything tangible, the nft business, any of its staking efforts, if any is paying off in the near term that would be good news cost cutting, that has been the theme of fin tech during

earnings coinbase has done a round of job cuts robinhood, square and paypal talk about the discipline, pulling back on spending we'll see if coinbase goes in the same director. >> a lot of competition. but they are kind of like the chase of crypto. for the average person who just wants to own something under a trustworthy name, what would you do with the stock? >> yeah. my take, kelly, isn't super nuanced. i agree with theissues of the core business, there's a lot of risk there, but i would put this in the high risk rally category. like you said, it's rallied hard into earnings. i put this in the same category with a lot of other arc stocks it's been helped by the big drop in interest rates. the 10-year from 3.50 to where it is today. my guess is, as we go forward here, we're going to see a big divergence in growth stocks between speculation and quality growth stock amazon and microsoft in the past i think you're going to see a

big advantage for the quality growth stocks and you're going to have bitcoin sell-off in the next risk off move which we're going to have and coin is going follow suit. i would be selling in the strength. >> there you have it it could be a 20% mover on earnings if the options are right. let's move to roblox whose shares have doubled since the last report in may. the company has never beat on a bottom line. can their daily active user numbers hold up? steve has the story. >> kelly, a really tough environment going into the earnings for roblox. let's show you a couple charts here if we can show the 90 day chart it's up a whopping 90%, been just on a huge tear since may. this is after they kind of gave some -- alleviated investor concerns let's say that they're going to kind of lap those pandemic comps an things will look better. growth is really the name of the game here for roblox can they continue to grow in this tough environment when people are spending less on

gaming look at the 52-week high even though they've been on huge run there's about 45% off their all-time high from last fall there's a lot more room to go back when we were talking about the metaverse and everyone was excited about it we're not back there yet that's one thing to watch. the other thing is advertising besides selling digital goods roblox is starting to dip its toe into advertising and talked about that on the earnings call. the idea there are tens of millions of people using, mostly kids, roblox every day let's get brands in there and collect ad revenue. >> or let's not. it always goes in that direction, but it remains a lightning rod sometimes. jeff, what do you do with roblox >> so we had a similar discussion on "fast money" relative to chips and the charts and mentioned this, another big rally into earnings. any weakness in results or guidance, you can see the stock sold hard. look at nvidia, for example, they came out with the warning yesterday, youhad a 30% rally

and now the stock is selling off really hard. all of that warning was really around gaming, right we've heard from companies like ea they've had solid revenue and earnings, but it's these forward looking warnings that we're seeing growth rates slowing, similarly with take two last night. that's what concerns me. look, i like the product i mean, i'm embarrassed to say how much money my kids have spent on roblox. but they're not going to be profitable for some time and again, i think it's something that gets sold in the next risk off move. >> we'll see you back again in just a moment. as we turn to wynn resorts our final name and earnings exchange it's expected to report a loss the shares have slumped 25%, 10% short interest, record revenues in vegas weighed down by covid problems in macau. contessa brewer has the story on wynn >> yeah. kelly, before the pandemic, you had macau accounting for some 75% of the overall profits for wynn so the fact that there's been

such strict travel restrictions about covid is no surprise here. so in this earnings report, what we're looking for beyond how well they -- this is doing, and we know a lot about that because we've heard from wynn's las vegas competitors, we know that travel has resumed internationally and that's a big part of wynn's customer base here in the united states. the real question that investors will be listening for is what's on the docket in terms of the interactive business we haven't heard a lot about that recently. wynn has been sort of keeping mum about that but massachusetts, where wynn has a gaming license and operates a big, successful casino, has just made a deal to legalize sports betting. we're going to listen for that on the call. also, this is one of the only casino operators to go in and open a brand new market, planning to codevelop an integrated reor the in the middle east. this is groundbreaking and you can be sure analyst want to hear when that might take place and

what shape it's going to take. >> seems like they have a lot of new things going on but the shares are struggling down about 40% year to date. >> yeah. i guess my take here is sort of indicative about the way i feel on the market right now, but the theme is the same here it's another big rally, but also, another bad chart. it's still in a clear downtrend and broke through the 68, $69 a share level which could have been support you can play it as kind of a speculative bet on china reopening, but obviously there's lot of guesswork there and hard to predict there's clearly pent up demand if you want to take a risk that's fine. i would be more comfortable with an mgm here's a more positive take. 85% revenue exposure here in the united states. leveraged to china some, but not totally dependent on it. they're far better off in the online gaming betting area and grabbing share there they're cutting costs, talking about profitability in 2023. i worry a little bit about that chart as well, but if it was a would you rather, i would go

with mgm. >> i was going to ask if there's anything you liked in this market you've given us a hint with the mgm pick jeff mills with our trade. contessa brewer will be tracking those results. still head, nvidia, take two, gaming revenue slowing down significantly from pandemic era levels but microsoft is still betting billions, $68 billion to be exact, on one of gaming's big players activision blizzard. should it, though? at nt?

. welcome back to "the exchange." video gaming stocks some of the biggest beneficiaries of the pandemic, but now take two is warning that a slowdown in spending will hurt the industry. nvidia slashed its revenue guidance yesterday in light of this, the biggest tech deal of microsoft buying activision blizzard for $69 billion. does that still make sense steve covac thinks maybe it

still does let's hear it. >> at least satya nadella thinks so i have a quote about what he told "the new york times" a year ago before they thought about buying activision. he was all in on gaming last summer and what he saw with activision, the stock declining, all the cultural problems the ceo, all these accusations leveled at him, he knew these were happening and if you look at the chart they saw the stock fall throughout the entire year, especially at the end of the year when all these problems were coming to head and they smelled blood in the water and said let's make a bid. this is a quality company on the cheap. berkshire hathaway did the same thing. >> in terms of gaming? >> in investing in activision. >> i never think about berkshire being involved there's a new generation of people wow. that's another story but to your point i guess the larger question, when they bought it and nadella is brilliant, absolutely, but even when they bought it, is it possible they were still paying

a pandemic premium these numbers do not look good now for gaming what is that telling us? >> think of what the most important business is for microsoft right now. the cloud. >> but that's slowing. >> but it's not -- >> didn't -- >> they have the new thing called xbox game pass which lets you basically stream your xbox video games to anything with a screen you don't have to buy a $500 video game console we'll let you play the games anywhere we own not just activision eventually, they own mine craft and see this as a way to super charge their cloud gaming service as well which super charges, azure cloud the most important business it's not just about the gaming thing. it's also about growing cloud which is hugely important. >> some of the traders at morgan stanley were saying look, they think this was a needed re-set we hear this, right. we have to get the bad numbers out of there so that people can re-set their expectations around videogaming demand is there any reason to believe

that gaming won't be growing with more importance in the years to come? i mean, you know what i'm saying. >> yeah. >> has anything fundamentally changed? >> this is why i cover gaming and i love covering gaming it has become -- it's only going to continue to grow we're approaching the point, kelly, where half the people on this planet play video games now most is done on mobile but all these companies see an opportunity there. in fact, that was microsoft's -- one of their stated goals here, like, we looked at the data, over 3 billion are playing video games. let's get in on that and get on now before it grows even more. that's opportunity then you can't talk about this without talking about the metaverse. >> sure. >> the who first big tech ceo to say metaverse publicly, wasn't mark zuckerberg. it was satya nadella he said it on an earnings call last may he's been thinking about this at least publicly way longer and in a deeper way than even mark zuckerberg has been. this is a very, very long-term

play the deal may seem expensive now, but they have a plan for it. >> you might have convinced me steve, thank you so much. >> at least nadella convinced you. >> steve covac, thank you. take two's chairman and ceo will join jim cramer on "mad money" tonight you won't want to miss it tonight at 6:00 p.m. eastern. coming up united wholesale mortgage saw originations fall from last quarter and last year. we'll talk to the ceo and where the lending landscape goes from here. in order for small businesses to thrive, they need to be smart. efficient. agile. and that's never been more important than it is right now. so for a limited time, comcast business is introducing small business savings. call now to get powerful internet for just 39 dollars a month. with no contract. and a money back guarantee. all on the largest, fastest reliable network. from the company that powers more businesses than anyone else. call and start saving today. comcast business. powering possibilities.

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welcome back, higher rates and lack of in fventory continue to crush mortgage demands. data fra black knight shows home sales are down 21% since the start of the year. it's taking a toll on lenders. they just reported a 55% gain in profits for the second quarter but also sawmortgage originations drop by 50% from the same time last year. the shares are down about 30% this year and 50% off the highs. for more on where the market goes from here, let's welcome

back matti ishbia. it's good to have you. where do we go from here what now >> mortgage rates went up, and at the same time people like us are still winning. we're still kbrodwroeg our mark share. we feel great about where we're at the housing market people say is cooling, it's cooling. we're seeing a lot of purchases. we had one of our best quarters of all time in purchase. if you're doing refinances, you're not going to be a great mortgage company right now, because it's hard to do refinances with rates in the 5s. >> what can you tell us about trends in the last couple of weeks or what you're expecting into the fall? >> yeah, well, we've seen the housing market as you said cool a little bit what i'm saying is it's still a hot housing market, instead of you get eight offers in the first two weeks and five are over asking price, now you're getting four offers with one over asking price. it's starting to shift to more middle of the road i think like i said before, i think the fourth quarter and first quarter will become more of a normalized market still great time to purchase, still a great opportunity.

housing values aren't going down they're staying level, and they're not going to go up at 15% a year, we all knew that. >> i know a lot of people say how can you say that market is not going to crash i take your point we might be sitting up here for a while, grant it the market might see more of a freeze in activity, which i'm sure wouldn't be a great thing for you guys. >> it's not going to be a freeze activity as just a freeze in valuations values go up 1 to 3% we're still winning on the purchase markets we're doing a lot of patch business a lot of competitors are down 70, 80%. people are closing doors, laying people off i'm paying a dividend, which is like a 10% yield based on my stock price today. we pay a dividend as a consecutive quarter, we're paying that out. we feel really good about our business right now >> what's the field going to look like? can you guys consolidate do you have any interest in doing so would it be a bad time because it's less profitable now are there weak players you think might get scooped up here or

changes that we can expect >> we look at all those things ch some people might exit the market because they can't compete. they haven't built the technology in the mortgage channel, the broker market is the cheapest place for consumers to get a mortgage so we are in the place that's cheaper for consumers, and we are cheap rer for people to use we're winning right now. we are growing market share. you'll see us continue to gain market share we'll eventually become the number one joefr all right now we're number two behind rocket. >> why do you think you're going to surpass rocket? they have a lot of good ads. >> they do a great job marketing. congrats to them on the markema marketing but on the business side they don't do purchase. if you're only dependent on refi, you will struggle. i'm not saying them specifically, all mortgage companies. >> matt, thanks for your time. good to see you, ma.

>> the ev names seem like the obvious winners from the inflation reduction act. we will dig into the under the radar players that could benefit like this conglomerate up nearly 3% in the past week. "the exchange" is back after this

mat welcome back. before we go, yesterday we talked about how the likes of solar names, some of the ev players could benefit from the passage of the inflation reduction act. there are some under the radar winners we also wanted to get into like honeywell, which is that mystery chart we showed you. o >> the obvious winners are solar, wind, and electric vehicles this historic amount of spending will spread into several other sectors. for one, something as mundane as hvac systems that's your heating and air-conditioning that includes public names like johnson controls, carrier and honeywell. heat pumps could be big as

homeowners would get a sizable tax credit to do the upgrades. agriculture, which is a big carbon offender will also benefit from $20 billion in ag sub sid subsidies, they'll also see cash from carbon sequestration, and a major name in this space, green plains it makes ethanol, but has also shifted its model to focus more on cleaner technologies for agriculture and potentially cleaner fuels. >> the clean fuel production tax credit that we're talking about could really start to change the way that this industry is perceived both from the farm all the way through what we do, and really revalue the asset base overall that we can do so many more things that others can't do in refining assets. >> in addition, venture capital firms like fuifth wall which closed a half billion dollars climate fulton county for real estate could see big boosts to the startups that it backseat. those include clean cement and

steel production as well as clean hydrogen and carbon capture, breakthrough energy ventures founded by bill gates could see the value of the companies it backs rise exponentially. gates said in an op-ed in the "new york times" friday, these incentives would also provide the private sector with the confidence to invest for the long-term, which we know is so important, kelly, going forward. >> i learned that we actually have a heat pump in our garage i just didn't know that was what it was called. i think it's mitsubishi. would they get any direct benefit from these incentives you talked about >> they were on the list as well i only had so much on the screen, so much space. they are one of the players that could see benefits from that as well >> even though they're not american, meaning there's no -- >> right, but they sell to american, if you have one in your fwraj garage, you're playing into mitsubishi. if people upgrade and use the tax benefits to buy from mitsubishi. >> i didn't know if they were like you can have this credit but only if you buy honeywell. thank you very much die anna

olick. we'll get a look at the retail names that could see a short squeeze as the mean traders return, that is coming up on plu"power lunch," which begins right now welcome everybody to "power lunch. glad you could join us i'm tyler mathisen, kelly will be right back with us in a sec here's what's ahead, a double dose of power players. we've got the ceo of valley bank, the stock up 12% over the past month, outperforming the bigger banks we're going to talk lending, the consumer, and why rates, bond rates, are funneling even as the fed hikes their interest rate. plus the vivid seats ceo, the company reporting a rise in revenue and upping its guidance. we'll get his take on discretionary spending in the face of this slowing economy kelly. >> yeah, we're excited to hear more about the consumer, which is showing signs of life in areas, tyler stocks, though, are mostly lower and the nasdaq is the biggest lagga