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tv   Closing Bell  CNBC  August 10, 2022 3:00pm-4:00pm EDT

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i see maybe a low there around mid-july maybe that's around gas prices giving some relief, the peak recession priced in. >> could be. >> maybe the skies are clearing now. thank you, dom >> dom, thank you very much. and thanks for watching "power lunch." >> "closing bell" starts right now. here's something we haven't said in a while, a cooler than expected print the most important hour of trading starts now welcome to "closing bell." i'm sara eisen every sector in the s&p 500 is higher except for utilities up 1.75% on the s&p the nasdaq zooming up 2.5% tech had been under pressure yesterday. the report on fears we wouldn't see as much of a fall in the inflation rate the number was good news for the markets. the small caps up 2.7% and the u.s. dollar sharply lower, down a full percent off that
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inflation figure bonds are rallying with yields coming down. here is a live look for you to show you how broad it is the s&p 500 sector heat map. and at the top of the list you have materials some of the cyclically oriented groups up 2.8%, communication services up 2.4% consumer discretionary up higher, 2.4% what's driving it, a lot of these travel names, the cruise lines beaten up hard, norwegian cruise, carnival up 9.5% we'll hit some of the travel names later in the show. canaccord's tony dwyer on whether the data changes his outlook for a market pullback in the fall plus, a sharon of plug power, up more than 15%, rallying sharply despite missing earnings estimates. we'll talk to the ceo about the numbers and how his business could be impacted by the clean energy provisions in the invasion reduction act that is what this rally is all about. let's get straight, though, to the overall market rally which is triggered by the inflation
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report mike santoli with a look at another metric showing how prices are changing. that really goes beneath the headlines. >> right how broad this easing of inflation was in the july cpi report it wasn't just one or two factors. energy we knew would be one. this shows you the net percentage of overall categories within the cpi where prices are going up in other words, the percent where prices are up month over month minus those that are going down and you see this peak right here and the fever broke. came all the way down to the long-term average. naturally this is jumpy on a month-to-month basis and doesn't show you magnitude, sara the cleveland fed mean cpi which basically looks at the center of the tendency of the categories, it also was lower than expected today or showed month over month improvement but it was still high it's elevated above 6% annualized it's not saying mission accomplished, it's done, but it does show you that there has been relatively comprehensive easing of inflation pressure
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a quick snapshot of where this equity market rally has taken the s&p 500. it gets up to 4,200 almost exactly, been hovering at that line for a while it's nosed above thatearly jun high that we were kind of watching and has been sideways under that for a few days. early may levels, it's encouraging and 85% of the volume in the new york stock exchange to the upside all to the good. unclear if this is just kind of, okay, we did it and now we sort of priced in the absorbable improvement in terms of the known catalysts out there, sara. >> people talking about the vix moving below >> a tick below 20 today i don't see that as necessarily in itself some kind of warning sign that is the lower end of the range. it sometimes does mean the market isn't anticipating any jolts that might come. but the market itself has not only been strong but calmer if you look at the actual day-to-day volatility. it's not been that remarkable. so, to me, we're in summer
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it's august. we got through the jobs number, the cpi, and people don't want to pay up for 30 days worth of down side protection when the next 30 days we're kind of just talking about late summer trading programs >> mike santoli, we'll see you later. thank you very much. for more jason trener. haven't broken above the morning highs but looks like solid followthrough, jason, considering the setup here as we're coming off a rally of about 14% in the s&p 500 what do you make of it >> i think it's clearly reaction not only to the inflation numbers coming in better but i think more broadly to the fact the long end of the curve is coming down. i do think we're in a different regime, meaning this transition from qe to qt is a very meaningful change. more meaningful since the late '70s i'm skeptical of the everything rally but you don't argue with
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the tape either. this is clearly good news. we think, though, the fed has a long way to go before it gets inflation to where it wants to be we would still urge caution here >> the market pricing has shifted around fed expectations for september toward 50 basis points it was at 75 after the very strong jobs report last week do you disagree with that? >> i wouldn't necessarily disagree with it prior to today i think, sara, one of the things in the futures contract, people were actually taking the idea of a pivot, we think, a little too far, which is to say they were pricing in easing on the part of the fed in the early part of 2023 and, to us, that's a really hard argument to make, at least historically the fed funds rate has never really stopped going up or the fed hasn't stopped tightening until it was above the cpi and so cpi in our opinion is going to come down it's not surprising, i don't
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think, given the fact the fed is tightening and you are looking at facts again, i think you have a long way to go. i think, listen, it makes sense the fed would maybe down shift a bit given some of this better news we also try to remind people this is going to be a process. unfortunately, i think the fed has trained everyone to think about economics in v-shaped terms through the use of quantitative easing and this is going to be more u-shaped. this is going to be more, again, a process as opposed to an event in our opinion >> so you're not buying? it sounds like you are staying defensive or bearish >> yeah. i would say we are, to be frank. bearish is a strong word do i really feel like putting on shorts today probably not really. i don't know if i would be chasing lower quality companies that are very much dependent upon the kindness of strangers
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for capital. and that's, again, this process where the access to capital -- >> are you talking about bed, bath and beyond? are you talking about ark innovation up 6% today where are you going with that? >> no, i think, listen, the access to capital has changed meaningfully from the start of the year at the start of the year you could have gotten funding for like a ham sandwich and i think now there's a lot of changes, the venture market certainly given what the fed is doing i think you have to expect changes just more broadly in the public markets as well in terms of access to capital i think you still want to be very careful with those names and, again, does that mean you should short them today? i don't know i'm not that bold or courageous. i'm not buying >> what about bonds?
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if you think there's too much enthusiasm about the fed cutting next year, do you think the bond rally reverses and we'll see higher yields again especially as we get into qt. >> as far as qt is concerned, sara, the fed has only just begun. it has found it somewhat harder to whittle down the balance sheet. they only started in june. they have a long way to go i think that puts a little bit of a floor in yields around here i don't know if i would be aggressive in lending the government money at 270 if inflation is down to 8 1/2 it will be lower at the end of the year i also think it's a big ask to buy bonds at these levels. we think generally speaking inflation will be stickier
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perhaps than the market would suggest today. >> and finally, jason, i think you've liked the energy sector, right, in the market crude oil has had a turnaround it's higher now. it's also key with the inflation story. do you like this group >> we do there's two things going on. we wouldn't doubt there's a chance for demand destruction but changes will keep supply constrained. the other thing that's happening ironically i think the esg movement and the biden administration in many ways is making these companies better investments because they're focused on returning money to shareholders they become the ultimate shorter duration stock to the extent to which they are returning money to shareholders in the form of buybacks and dividends and in our opinion that's a good place to be when inflationary
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pressures are high >> jason trennert, thank you very much. good to get your take on these numbers. we'll talk more about the inflation data and market impact when we are joined by canaccord's tony dwyer angie's list getting slammed today on the back of earnings. we heard that also from iac. we'll talk to the ceo and find out whether the covid home renovation boom is fully over. the dow is up 410 points you're watching "closing bell. power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools
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check out today's stealth mover, the trade desk. look at that move up more than 30% today. $35 billion company that focuses on data-driven advertising came out with results topping revenue estimates last night after the bell with guidance coming in above expectations as well the stock has been on a roll lately, up 60% the last month, though still in the red on the year it was one of those crazy high flyers during the last wave of the bull market. shares of home services company angi taking a dive today investors are concerned over slowing revenue growth in july just up 10% compared to the 27% growth in june joining me here is angi ceo oisin hanrahan it's great to have you and see you in person. so there is some concern about your quarter was good but the new numbers you gave around what you are seeing now, why such a slowdown >> great to be here. thanks for having me
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yeah, i think the incredibly strong quarter set us up for some serious expectations and if you think about what we've had this quarter we've had incredibly strong revenue growth, really strong ebitda growth back to 10% and then we've had softness in certain parts of the business. our ads and leads business very strong, back to growth after the rebrand from angi's list to angi things softened in july. >> is this the roofing issue >> that's right. we had softness in roofing, a challenging business that we bought just over a year ago. year over year that business actually shrank. the services business by itself growing 34% year on year in july that delta from 34% down to where we are really just a function of softness in the roofing business nothing serious just operational challenges we scored an own goal on ourselves. we'll figure it out over the next couple of quarters and get it back to the 15% to 20%
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growth >> i did hear you mention a slowdown in consumer discretionary spending what are you seeing there? >> so we're definitely seeing softness in consumer demand. you have to remember the way angi makes money is we are paid to advertise a really long order book where every single pro in america was booked out three to four months, they didn't want to advertise during the pandemic, so we're seeing that business back to growth as we've kind of lapped the pandemic and a more moderate relationship between supply and demand is what sets angi up for success. we're happy with the ads and leads business, back into the high to mid single digits on growth rate, strong ebitda margins. we're set up for success with a more moderate relationship we don't want services demand off the charts >> i remember talking to you in the depths of the pandemic when demand was off the charts for renovations of home for handyman, anything people could do to fix their homes.
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how closely does that track the housing market now which is seeing some real weakness? >> we're definitely seeing weakness in what we would think of as discretionary task bes, discretionary outdoors, things like decking in particular would be a soft task right now 60% of our business is nondiscretionary your toilet goes out, your electrical system, your hvac goes out, those are things that are getting done no matter what. you may shift from replace to repair which, again, potentially is good for our business, but that overall demand is definitely down a little but in tasks where you would expect it to be down >> what about contractors? whether we're going into recession or not as far as people who want to be working and join your platform >> we look at this thing when pros are going into the angi app, i'm available right now i want a new lead.
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i want to spend money to advertise on the platform. year over year, three months ago, we noticed it was tracking up so that's pros saying, hey, i'm more available than this time last year. you may not feel it when you call a pro right now you may feel they're not available in how they're negotiating, but we look at the data and see year over year active for match going up 5%, 10% in certain categories even more the second thing we look at their willingness to pay for leads. to say, i have 20%, 30%, 40% capacity across my labor pool. every marginal lead, every incremental customer is worth so much more when you have capacity and we've seen their willingness to pay, to spend on advertising also go up significantly in the last quarter >> what do you say about the stock move, down 13% it's had a rough ride so far this year. what are investors missing from your perspective >> we don't look at the stock day-to-day, week to week we've had an incredible quarter. angi is incredibly well set up
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for success. we're the only ones in the category that have an ads business, a leads business and a services business. we have the leading product in the category, more consumer demand than everyone else. over the long term, stock will realize it >> oisin, thank you very much. good to see you. >> thanks so much. >> the ceo of angi services. ahead of the bell we have a 440-point rally on the dow s&p up almost 2% 1.8% the nasdaq even more, up 2.6 look at small caps up 2.8% headline inflation number showing numbers are easing but that is not the case for one very important part of the economy which you likely know yourself we'll bring you the big picture on rising food costs at the grocery store next check out today's top searched tickers, ten-year yield right on top followed by tesla after elon musk sells more shares the stock rebounding coin base had a rough quarter
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in today's big picture inflation overall may have eased in july. the markets certainly celebrating that grocery prices not so much in today's cpi report food prices at home or supermarket prices rose 13% from last year, an acceleration from last month, and the 14th monthly rise in a row. some of the components, shocking cereal up 16.8%. milk up 15.6 coffee prices up 20% companies from campbell's soup to general mills have been discussing how they have raised prices multiple times. general mills raised five times this year. those stocks are higher today but underperforming the broader rally. an economist at moody's does expect food inflation to start
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coming down soon listen >> almost half of the cost of food is diesel, just getting it from the farm to the store shelf. and it takes time for that to translate through. so these higher food prices should start to come in as well just as long as oil stays roughly where it is today. >> another promising sign we have seen commodities prices from wheat to corn fall over 25% from their highs tomorrow's ppi or wholesale price data will give us a clue as to whether it is starting to turn so far we're just not seeing it yet. up next canaccord's tony dwyer explains why he thinks the bulls are not out of the woods just yet.
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stocks jumping on the back of inflation numbers which show a slowdown it was a miss off expectations which the market likes but should you trust this rally. joining us now is tony dwyer from canaccord genuity are you fading it? >> we expect the summer rally. it met the parameters we're looking for. the reason you had the first half tumultuous was the fear of fed and that's about the
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economic slowdown. certainly a lower cpi will help reinforce the slowdown and that is where the problem may lie when that becomes a reality. >> so you think this is the final innings of the summer rally? >> i do. well, forget about my opinion. you know i'm about the data. the indicator a ten-week rate of change, simple on the s&p. when you've had it drop by minus 15, i call it a whoosh, extreme selling, it's only happened 16 times since 1957 when it's happened and has pivoted higher, the only time you didn't have some kind of test of the low or pullback after median 14.96 gain is when the fed has started easing obviously that's not the case. just like it felt so wrong to look for summer rally six weeks ago it feels so wrong not to be
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chasing the upside with a lower cpi print. i want to be careful to not sell in to extreme whooshes >> and there's also this old saying don't bite the fed. i feel that's what the market is increasingly doing here even with the inflation report. gone from uber dove to uber hawk saying we're far, far away from declaring victory on inflation and he expects 3.9% terminal rate this year 4.4 next year, one of the most hawkish -- i think the most hawkish expectation, the consensus is closer to around 3.5% evans of chicago says inflation is unacceptably high is the market ignoring this at their peril? >> i don't know if it's ignoring
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it at its perfectly but is ignoring what the fed is telling them today, for example, the 2, 5, 10 year paper down double digit even up to 18 basis points and that's all reversed higher the last i looked so it's down a little bit on the day. the summer rally you had oversold condition like a historic oversold condition, excessive fear of the fed. and as you point out the last thing this is the most important an excessive fear of economic activity nominal growth in gdp was 7% in the last reading i get it the academic study says two quarters in a row of negative gdp is a weak economy. that saved really at the end of the year and into next year. the first fear of a market decline is fear of what the fed is going to do then you get the comfort hat,
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okay, maybe it's not so bad. the pendulum swung to excessive now down to the sweet spot to expect it to stay here without any economic issues on the back of this kind of fed policy is to expect that pendulum to stay there and not swing this way from here on in it's about economic weakness not higher inflation once we're done with the summer rally which obviously is continuing on a little bit today. >> except then we get some really good data points that show unemployment is coming down and that employment is actually accelerating with the jobs report showing more than 500,000 jobs i get it could be a lagging indicator but it's showing an acceleration which makes you wonder if there's a bigger cushion there for what we're feeling on the rate hikes. >> the fed is really in a box. sara, classic strategist, it takes anywhere between three months to 18 months for an interest rate increase to impact economic output. so let's just call it three
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months and play the most conservative that means we're just beginning to discount the initial rate hikes. what of the economic slowing to date is about the fiscal cliff where you cut off the unemployment benefits and the pandemic related stimulus and now we're transitioning into the sweet spot where you go from good news is bad news, bad news is good news at some point unless you avoid recession, you are going to have bad news is bad news that doesn't mean you are down 50%. you can pull back and test the low which has happened every time when the tactical indicator i talked to you earlier goes off. >> not buying it tony dwyer, thank you very much for your thoughts. >> have a great day. thanks, sara >> you, too. here is where we stand up sharply. 464 points on the dow. we've gained a little traction goldman sachs is the biggest winner on the dow. every sector is higher
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nasdaq up 2.7% the unprofitable names to the large cap players like an amazon or an apple, meta, google. after earnings and revenue missed the mark. we'll talk to the ceo about wall street's reaction and the inflation reduction act which is the key. and you can listen to closing bell on the go by following the closing bell podcast on your favorite podcast app
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take a look at plug power, shares surging today up more than 17% the company missed estimates in
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its q2 report last night the inflation reduction act will accelerate growth and boost the line joining us is plug power ceo andy marsh >> hi, sara. >> it's great to have you. what a day for you one analyst said were you giddy. what is the impact on your business >> sara, we were on a good track before the inflation reduction act. it is an accelerator we are on track with achieving 900 million to 925 million this year we are on track to grow at $3 billion in revenue at 17% oi this act just accelerates it faster especially our electrolyzer business. giddy is an interesting word
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we were heading in the right direction and this just helps even more. >> from a demand perspective or credits make it more cost effective for you to produce hydrogen >> i think, sara, on both. there will be in our electrolyzer business, for example, where green hydrogen will replace gray hydrogen used in fertilizer manufacturing. substitutes for natural gas and manyapplications such as the manufacturing of green steel it creates demand for us in our business where green is more cost competitive than gray on top of that for our hydrogen generation business we're building the largest network across the united states, that will help so we win on both
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sides. >> what happens to your margins because they have been under pressure, andy, on some of the near term and nat gas. how does that balance with the help you are going to get on the cost side? >> the two bigs on the cost side this company has become vertically integrated. our negative margin to over 30% gross margins. that in itself helps drive this company to profitability and on our service line we are seeing dramatic improvement service by year end. so the numbers add up that we will achieve profitability in 2024 as our cfo said yesterday on the call. >> what does adoption look like right now?
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it still feels like a niche product. where are we in the journey and when do you think we could get to mass market if ever >> so, sara, probably during covid you ate food that was moved on fork lift trucks because we helped move 25% of the food in the u.s. during the covid crisis there were over 60,000 fuel cells out there. over 185 fuel stations plug is built for amazon and walmart it's certainly just the beginning but the adoption rate is happening quicker than you may think. our green hydrogen generation projects or eleelectroliesers >> andy, we'll keep an eye on it thank you for joining us >> thank you for having me,
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sara bye now. >> andy marsh, ceo of plug power. up next analyst mark mahaney joins us with the latest on the twitter saga as elon musk unloads billions of dollars in tesla stock to fund a potential deal that story plus a preview of what to watch when disney reports today after the bell rk ze.nse e you iidth maeton
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power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. we are now in the "closing bell" market zone, breaking down the crucial moments of the trading day. phil lebeau on the rally and mark mahaney on the latest
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musk/twitter drama the dow up 530 points. we've surged in the last two moments. the s&p up 2.1%. a healthy rally. all sectors are higher on the day. bonds are rallying bitcoin and crypto getting a big boost. both pretty skeptical on the rally. one worried about the economy and the fallout from higher rates and jason worried about the fed having to do even more and saying the market is too excited over rate cuts where do you stand >> yeah, look, i think this potentially could be an overreaction to what was a pretty good cpi report we definitely have a lot of data before we get to the actual decision by the fed in september. but for today we're rallying and i think it's really because inflation has been such an overhang for investors and for the market and i think what investors are thinking today is maybe the peak
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really has been put in the past if you look at core cpi, wow, it stayed hot at 5.9%, stayed steady it has come down in march of this year. we might have peak inflation but the question is where does inflation go from here how fast does it move lower from here we're not probably going to end the year 2% inflation. i can understand the worries of both strategists you mentioned >> elon musk sold almost $7 billion worth of tesla shares. musk saying in a tweet the funds could be used to finance a potential twitter deal if he loses his legal battle with the company. he has sold almost $2 billion. joining us for more is mark mahaney. does this make you think that he's closer to having to buy this company >> i think it's hard not to reach that conclusion. i'm no legal expert but with all
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the checks we've done on it it would seem to appear twitter is a pretty strong legal position here this will all come to a head in the middle of october, i think october 19th you have a judge who has a clear track record, a no bs judge, and the five-day hearings will determine this case and seems like a reasonable odds on outcome. maybe they will still negotiate something between now and then it does seem like this deal will happen >> the stock is still $10 below the deal price why aren't you recommending it if you think the deal will happen >> these are so hard to predict and so we're out of fundamentals and i try to keep myself in. on the down side here, too, we didn't think this was going to -- we didn't think he would
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walk away from the deal in the first place and those short the stock could have made a lot of money if they covered at this point. i want to think about the down side, though in that situation we never know what will happen, if the deal were to fall apart, where does twitter go it's put the stock in the middle of the upside and down side. $54. if you look at comps you could probably see $30 stock you are a little bit above making money less down side on the upside case than on the down side case. that tells you the market is thinking this is going to happen this has been more volatile than any i've seen. i want to be careful >> so which stock then do you prefer the fundamentals of now we've seen a pretty nice rally. i will give you a little grief for saying into earnings that you didn't like any of the big cap tech, you thought the earnings were going to come down and expectations were still high they did pretty well and even
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meta the one disappointment up 12% so far in august >> we've had cases where the numbers have gone up and stocks have gone up, cases where numbers have gone down and stocks have gone up. this is a very different environment. this changed in the last two months, the first half of the year dramatic multiple corrections. the question was the estimates risk and we've generally had estimates come down. what i do like, i will stick with the names we like -- amazon, booking and meta i think amazon just got unlock the last quarter has a lot of room to go. meta hasn't been unlocked. a lot of distrust about that, fear about that stock skepticism for good reasons, too. if you unlock like on amazon tons of upside i like meta here >> if we peaked on inflation, does that change the story for any of your names which have
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been hit so hard on fears of higher rates and the economic fallout? >> absolutely. i've been waiting for two things to get bullish back in growth equities and you need inflation moderation which leads to interest rate moderation that's one thing you need the estimates estimates have come down across consumer tech because of recessionary fears and also because of rising costs. the costs were part of the h1 story this year, the back half the demand cuts. the path has been set here as long as you don't have another big negative leg down. i like the space i don't know whether the bottom is here, still three months out or six months out. you are going to make money. the odds are in your favor if you can look out a year or longer particularly on the highest quality consumer tech stocks >> mark mahaney, good to hear from you, thank you very much. check out the move in airline stocks up across the
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board. american ceo bob eisen announcing american received the first boeing 787 in over two years. it does expect to get more before the year is over. cruise lines moving sharply higher some of the top performers have been on the other side of that trade as recently as yesterday look at norwegian. phil lebeau joins us now on the airlines specifically what do you hear >> reporter: look, you have a situation for the airlines where travel remains extremely strong, jet fuel prices are coming down and the airline stocks all got dinged, all of the stocks got dinged after the report of q2 results. mid to late july, the airline stocks recover that's what we've seen across the board whether it's the largest of the carriers or they're all up between 2% and 4% today. with regard the 787 dreamliner take a look at shares of boeing, ge, spirit aerosystems,
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honeywell. you start to see more deliveries in the next year that's why the stocks are moving higher we knew the deliveries were going to resume. that did happen today with american receiving 787 now more focus on what happens with the boeing deliveries the second half of the year. >> lindsey, weaker dollar, maybe that's leading some to speculate we'll get international travel phil mentioned the airlines. what do you make of some of these travel groups which have typically been cyclical but catching a nice wave here of unprecedented travel demand. >> i think the demand from the consumer and perhaps international travel is coming back we're seeing business travel come back. airlines had to limit the amount of flights available because theydidn't have enough staff o airplanes.
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if they can get that out of their way and are receiving delivery of some airplanes that means they will be able to put more supply in the market to really benefit that demand we also saw prices come down in the cpi report for airfares. that helps consumer demand today is just an upbeat day for the airlines in general. i think they will be more volatile as we move forward until we get a clearer picture to the end of the year and if holiday travel will be as strong as some people expect. >> a lot of cyclical groups, home building, semiconductors, autos. phil lebeau, thank you disney is the name we'll be watching as the company gears up for third quarter results. it's up today but among the worst performers julia boorstin here with the preview. julia? >> reporter: disney is expected to grow revenue 23% and earnings per share to grow by 21% bolstered by a rebound at its parks division
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focused on the streaming subscriber numbers expecting to add 10 million subscribers in the quarter. they are waiting to see if the company will reaffirm its target of hitting between 230 million and 260 million streaming subscribers by 2024 and the fact the company said that it hopes for it to be break even at that point. the other question is how inflation can hurt bookings and consumer spending. the parks are expected to be the big growth driver for this quarter. >> and potential recession in the market julia boorstin disney has been such an underperformer referendum on the ceo who has been under pressure with public relation issues, the stock price and missing some streaming numbers. >> there's a lot to think about going into this report i think travel and tourism boost is helping their parks business.
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i think people are excited about that how does that look going forward and how does the streaming business look going forward? the stock is down about 40% from its 52-week high it actually has moved up about 20% going into this report from mid-july it's had a good move over the last couple of weeks, so that makes it more difficult for investors to react positively at this point in time, i think. and at the same time also you've seen the multiple expand to about 24 times after it bottomed at 19 1/2 times. it has to be a really good report here, that streaming number will be important, what the parks do and the outlook will be important. even with ad spend what we heard from other companies, how is that impacting this business there's a lot on the table for disney and it's coming after a nice move higher at least in the near term for the stock. >> and the last month up 17%, still down almost 30% for the year lindsey, now that we're through
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the bulk of earnings season and you look at the guidance we got and some of the estimates for next quarter, q3, which secrsectors look right, do you think expectations are off with what you are expecting? >> i mean, it's easy to say today especially but i've been saying this for a little while consumer discretionary is a sector there might be some opportunity. estimates have come down quite significantly. you are starting to see as gas prices come down, down 20%, the consumer price index, inflation, that's come off a little bit that is a huge benefit to the consumer a bit of stabilization in interest rates potentially here at least from a market perspective. that could benefit some of the consumer services companies benefiting from a shift in spending entirely by the consumer as they focus on experiences and travel rather
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than goods goods prices are coming down, too. it will be a rough couple of weeks for the retailers. a one by one basis but there could be opportunities i will be watching those earnings really closely this quarter and i think as we get into the second hatch of the year you could see relief in the consumer discretionary sector overall. >> we're going to get the biggies, walmart and target, soon is all the bad news in there or do you expect more to come >> i think there's a lot of bad news and these announcements are the time wall street is it giving all companies a pass if they do it, there is something to look forward to into the latter part of the year if inflation comes down and gas prices remain lower and, like i said, interest rates remain stabilized
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>> lindsey bell, it'sgood to have you here for the "market zone." as we head into the close, i want to show you what's happening in the market. it's a broad-based rally near the highs of the day the dow surging. nearly every dow stock higher up 500 points on the dow. what's having the most impact positively is salesforce actually it's number three goldman sachs, microsoft and then salesforce. s&p 500 rallying into the close we're up a solid 2%. materials driving us higher the most and consumer discretionary services, technology, financials are joining the party, cyclical groups like industrials as well, energy turning positive later in the day as crude oil flipped and gained on the session. the nasdaq is the big winner with the tech stocks flying here you have apple, microsoft, tesla, nvidia, alphabet
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contributing the smaller technology companies hit in the down turn, the bear market of this year. ark innovation, the everything rally. that's it for me on "closing bell." see you tomorrow now to "overtime" with mike santoli. welcome to "overtime." i'm mike santoli in for scott wapner we're just getting started we'll have breaking results from disney, earnings expected to cross at any second. we'll bring you the numbers as soon as they hit we begin with our talk of the tape cooling inflation sparking a red-hot rally. all three major averages firmly in the green as consumer price increases pulled back from a four decade high today's cpi print the fed is engineering a soft landing and

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