phenomenon but i have to think back-to-school is more expensive on its face because it's not just binders and notebooks, it's laptops and chromebooks. >> how many of those were bought, though, two years ago already? >> a lot a lot. dom, thanks. >> you got it, guys. >> thank you, everybody, for watching "power lunch. >> "closing bell" starts right now. another cooler than expected inflation print helping boost sentiment today but stocks have come well off their highs, currently sitting near the lows of the day welcome, everyone, to "closing bell." i'm sara eisen the s&p 500 is actually little changed. you have tech underperforming, reversing that earlier rally we saw. you also have some notable strength in groups like energy, financials, materials, industrials and utilities. communication services also barely higher at this hour thanks to disney and some of the other media names rallying like warner discovery, cox and

paramount. the nasdaq is negative by half a percent. check out our chart of the day it is disney, getting a big pop on earnings and helping to support the dow right now. streaming subscriber numbers blow past estimates. a lot to talk about there. ahead on today's show we'll talk disney results with ben silverman. ask whether he thinks customers will be willing to pay up for more disney plus. plus, talk about a buy the dip opportunity. snack maker utz just reported upbeat results on its salsa and dip business i'm sure the cheese balls helped we'll talk to the ceo about those numbers and how the company is dealing with persistent food inflation and rising prices for consumers. let's get straight to today's dashboard. mike santoli is here as always mike, today's rally has faded somewhat which levels are you watching to see whether it's intact overall after the nasdaq jumped 20% from the lows. >> it's quite a sprint higher.

we got a little fatigue. in terms of levels, pretty significant in the morning rally. the s&p was up about 1%. it did cross above a level, 4230ish, the halfway mark between the lows in june and back up to the january highs so that was a widely watched area you mentioned tech stocks underperforming. that's what's weighing on things this is a one-year look. what's interesting about this 42 and change type number, you go all the way back and it was actually in the area of relatively significant lows if you go back a while, especially intraday lows. so it's the threshold that would mean if you got above it, you were out of the depths of the bear market range but it did not stay above there it's because the mega cap growth stocks were inching back up, oil prices bouncing. we got more relief on july inflation, but the question is have we somewhat already priced that over the last couple of days take a look at the rush for

riskier assets because the credit markets have mostly confirmed what's going on in equities this is a six-month look at the s&p 500, high-yield bonds as well as a comparable etf of treasuries so this is the one-year, but the six-month would show you they're more or less moving in tune. you have seen this really aggressive move off the low in high-yield bond prices that shows you there's more risk it's out of the danger zone, i would say, in terms of credit spreads. not yet back to the most benign levels but this shows you that the economy was -- we were in a stagflation panic. both the stag and the flation look a little less scary after the jobs numbers, but one month is only one month, sara. >> so, mike, what you're saying or suggesting which could be true, the peak inflation idea is priced in with this giant rally we've had. what now what do we trade off of? more evidence inflation is cooling? >> yes. >> do we need to see the jobs market slow down a little bit as

perverse as that seems >> i'm not sure we need to see outright slowing of the jobs market what we basically need is confirmation, incremental confirmation that we're correct not only that we've seen the peak in inflation but there's going to be a downtrend, it's not just a choppy month-to-month type of action that's not going to help out. the fed needs to see it go down and companies want to see it go down so i do think that's where we are. positioning has been an issue. people were very, very bearish at the lows. they have chased and grabbed hold of equity exposure because they were not prepared for this kind of a run. the question is where does that sit right now? do you chase it here >> we are awaiting any minute now the attorney general of the united states, merrick garland, in his first public appearance speaking publicly from the department of justice since the fbi search of former president donald trump's mar-a-lago home on monday. we'll bring it to you live as soon as it happens mike, i'm watching what's not working today, what's dragging us lower the ark innovation etf which has

had a tremendous rally of late, it is down 3% right now, which could be -- it's a leader and it also leads things like crypto and the nasdaq and financial conditions they're all kind of tied together lately. >> they are. and that's part of the positioning shock. anything that was heavily shorted, anything that was discarded on the way down, that's been moving the fastest you saw a real reversal in a lot of that stuff intraday today it seems as if we got above 4200 on the s&p that's where a lot of folks probably sort of stepped aside and said i'm not going to fight this rally anymore that shot us above 4250 for a while and now it's what's next. >> mike santoli, thank you let's bring you to washington and hear from attorney general merrick garland. >> make clear that the department of justice will speak through its court filings and its work just now the justice department has filed a motion in the southern district of florida to unseal a search warrant and property receipt relating to a

court-approved search that the fbi conducted earlier this week. that search was a premises located in florida belonging to the former president the department did not make any public statements on the day of the search the former president publicly confirmed the search that evening, as is his right copies of both the warrant and the fbi property receipt were provided on the day of the search to the former president's counsel, who was on site during the search the search warrant was authorized by a federal court upon the required finding of probable cause the property receipt is a document that federal law requires law enforcement agents to leave with the property owner. the department filed the motion to make public the warrant and receipt in light of the former president's public confirmation of the search, the surrounding circumstances, and the substantial public interest in this matter.

faithful adherence to the rule of law is the bedrock principle of the justice department and of our democracy. upholding the rule of law means applying the law evenly without fear or favor. under my watch, that is precisely what the justice department is doing. all americans are entitled to the even-handed application of the law, the due process of the law, and to the presumption of innocence. much of our work is by necessity conducted out of the public eye. we do that to protect the constitutional rights of all americans and to protect the integrity of our investigations. federal law, long-standing department rules, and our ethical obligations prevent me from providing further details as to the basis of the search at

this time. there are, however, certain points i want you to know. first, i personally approved the decision to seek a search warrant in this matter second, the department does not take such a decision lightly where possible, it is standard practice to seek less intrusive means as an alternative to a search and to narrowly scope any search that is undertaken. third, let me address recent unfounded attacks on the professionalism of the fbi and justice department agents and prosecutors. i will not stand by silently when their integrity is unfairly attacked the men and women of the fbi and the justice department are dedicated, patriotic public servants every day they protect the american people from violent crime, terrorism, and other threats to their safety while

safeguarding our civil rights. they do so at great personal sacrifice and risk to themselves i am honored to work alongside them this is all i can say right now. more information will be made available in the appropriate way and at the appropriate time. thank you. >> mr. attorney general -- >> thank you all for your questions, but as i said, this is all i can say at this time. >> well, now we know, shepard smith in the cnbc newsroom we now know that merrick garland has requested the unsealing of the document, and here it is, it's just been sent to us. this is the request to unseal both the warrant and the list of the items that were taken from donald trump's mar-a-lago estate there are three parts to this. the third would be the underlying affidavit which would give us chapter and verse of

what was happening in this case. that is not being unsealed what we're getting now is presumably shortly -- there was a lot of speculation about why this news conference, as it were, statement more accurately was scheduled for 2:30 eastern time and didn't begin until shortly after 3:00 it's possible that they were waiting for this judge to make a ruling on the unsealing of the limited warrant materials, as it says, at the top of this five-page statement. so presumably shortly we will know what donald trump and his lawyers already knew, and that is the content of the limited warrant itself eamon javers is in washington with us. eamon, the affidavit itself would be more revealing but this will give us an idea at least of what the former president and his counsel know. >> we're about to know a lot more about this, shep. you heard merrick garland explaining that he's very limited in what he can say and

what we just heard from the attorney general here is that these are not normal circumstances. he cited the surrounding circumstances in the publicity of this event, the fact that the former president, donald trump, notified the public about this search of his home earlier this week, as is his right. he said there is substantial public interest in what the department of justice is doing here garland going to great lengths here to publicly defend the department of justice's conduct so far this week on this issue and saying that he personally signed off on the search warrant that was applied for earlier in the week he says the department of justice did not take this decision lightly that is to go into the home of a former president of the united states against his will, presumably the department of justice knew just exactly what to expect here in terms of the outcry of publicity and outpouring of criticism from

trump defenders. within the next couple of minutes we expect to see these new documents detailing exactly what the department of justice can say publicly so far about all of this. >> i'm frankly not entirely sure that that's a given. that goes to the very end of this document which i've now been able to read through. at the end of it, it says -- it goes through the reasons that merrick garland and others believe it should be unsealed and then says argument in these circumstances, the court should unseal the search warrant, including attachments a and b and the property receipt, meaning the list of the items taken from the property by the department of justice and federal investigation. it said those attachments and the property receipt absent objection from the former president. we all know that had the former president wanted to release these documents, the former president could have done exactly that he has every right to release that just as any other citizen who had been served such a

warrant has a right to do that but the former president and his counsel chose not to do that instead, by all observations it's clear he used the absence of information, that void of specificity to create this hubbub, which we've all been watching on the political right and on certain cable channels, this ginning of an enormous conspiracy theory which has led the republican candidate from the state of arizona, kari lake, to say the fbi should be disbanded and defunded what we're living through at the moment is an appropriate absence of detailed information and an inappropriate ginning up of a large portion of society, which has caused the department of justice to take this step. we can only presume that if in fact there is no objection from the former president, we don't yet know, we'll have an understanding. but what we already know is on june the 3rd, june the 3rd, the beginning of this summer, a subpoena was issued for these 15

boxes of information which are the property of the united states government which were taken from the property of the united states government by then former employee in the form of the president of the united states they requested that those boxes be returned. on june 8th, the information says that more classified documents inside mar-a-lago. the reporting of nbc news that they requested that another lock be put in the area of mar-a-lago where those documents were contained. and then during a period between june and august, there was an informant who said that there may be more classified documents inside mar-a-lago. all of that leads up to the september the 8th or the august the 8th, two days ago, execution of this search warrant at mar-a-lago all of this could have been avoided had the former president and his counsel decided to release the documents which merrick garland is now asking a judge to release to all of us.

>> that's right, shep. the document that the department of justice has just made public through the past few seconds is the motion to unseal the limited warrant materials. so we'll see whether those get unsealed here in the coming hours or days or exactly when we're going to get that material but this is a battle that you just saw, merrick garland is a man who is trying not to become james comey here you remember james comey back in the 2016 presidential campaign went out publicly and explaine why it was that they had reopened the investigation into hillary clinton's email server at a time when the national attention on the presidential campaign was at a fevered pitch. a lot of democrats criticized comey for coming forward at that time, talking about the investigation at all and lending credence to allegations against hillary clinton. in this case what merrick garland is saying is that he did not want to come out and talk about this publicly at all for that very reason you don't want to cast aspersions on somebody who may be perfectly innocent just because you're conducting an investigation. you may not find anything. but in this case because the

former president went out publicly with this information, therefore, that changes the game there's enormous public interest he's feeling a need to explain himself at least a little bit here and we should get some more detail on exactly what it is that they're searching for what we won't probably get at all is the contents of those classified documents that are at the heart of this whole matter what exactly is it that the department of justice is trying to protect that was inside mar-a-lago that's the central mystery here. we don't know the answer to that now. it's not clear whether we'll ever know the answer to that. >> indeed. and further that a federal magistrate came to the conclusion was evidence of a potential crime inside mar-a-lago you can't get the warrant without evidence of possible crime. >> you know, shep, all week i've been talking to former department of justice and former fbi officials an their consensus on this is outsiders who knows how this works, you couldn't just apply for a warrant like that unless you had an extraordinary circumstance there's something in these

documents that is very, very important that the department of justice is very, very concerned about. you would not see this in sort of a typical document custody dispute kind of a situation. there would have to be something here that was really a pressing matter and because of the nature of the secrecy of the documents themselves, the department of justice is entirely hamstrung in how to discuss this in public. they can't really explain what they're doing without letting the cat out of the bag so to speak in terms of what the documents are. >> eamon javers, live in our d.c. newsroom, thanks. should we get these contents if they're released in the next minutes or hours, we'll bring them to you here and we'll have all the news on the news at 7:00 eastern right after jim cramer right now we're in the stretch of "closing bell." sara eisen has that. >> shep, we'll look for more analysis on the news the dow just briefly turned negative we were up 340 points at the highs of the day

let's bring in jeff solomon. it is his first interview since the td acquisition deal was announced. we've got to talk about that which we'll get to, jeff how about this rally that's faded today. are we in a bear market or a bull market? >> it's fairly hard to tell. the market was oversold. several parts of the second quarter felt like death and despair and the market was oversold i think everyone uses the word "unprecedented." if you break that down, it really is unprecedented. there are no precedents for the markets that we're in. if you look at the macroeconomic backdrop, the shutdown of the global economy, the bringing back up of the global, the amouc amounti of fiscal stimulus and monetary stimulus. when you look at history as every market participant does, there is no precedent for the time that we're in so i think the markets are simply looking through to what the new normal could be. they got oversold in the second

quarter and we're seeing a bounce here. whether that continues will be a function of the fact we get more data but it's not surprising how -- given how bad the markets were. >> it is surprising from your point of view and you have a good window into the capital markets that we're not really pricing in recession at this point. >> yeah, so the base case is that the fed has never really raised rates as radically as they have. every time the fed has been behind the curve, that's led to a recession. that's everybody's base case the difference here, and why markets could rally and find this soft landing narrative, is that we've actually never seen how quickly they race to zero and how quickly they're bringing them back. we have $3 trillion worth of deposits still that are earning money. banks are now paying interest rates on that money. and i'm a big rational expectations economist the fed has signalled exactly what they're going to do consumers are expecting a recession, because they talk about it so they're actually slowing spending already

and we're seeing that behavior already. so if you talk about it, it eventuates. >> where's the market on it? >> the market is saying that's a real possibility just because it's always led to a recession doesn't mean it will lead to one. it could be a shallow one. again, that would be the alternate narrative. i think markets like this always climb a wall of worry. so everybody is bearish, the market will find a way to break through on a different narrative. >> the pain trade is up, certainly for the last few weeks. >> yeah. >> in the middle of this unprecedented period, you sold your business for nearly $2 billion. why? >> first of all, the great -- our new great partners at td came and asked it wasn't like we were looking to do that the folks at td securities, the ceo, they said that they wanted

to have cowen be part of the td family pretty simply when a double a rated bank walks in your bank and says they love what you do and don't do what you do and they want to bring all the people over and build a business together as partners, how do you not listen to that that's not something that happens every day. so we listened intently to what their game plan was. it dovetailed with where we think we can be really helpful you know, i think you ain't seen nothing yet. >> you're staying on board you're going to be a senior executive at td. >> yes. >> what does cowen look like for the next year or so as you get this deal done >> so i'll be the president of td cowen we haven't laid out the organizational structure in full we'll do that over the next few months but it will be all about figuring out how we create the right partnership and economic incentives for people to do what they do. this is one of those rare examples where two financial services firms coming together

and there's no overlap in businesses. >> but they want to compete with other canadian banks. >> not just other canadian banks, other north american banks, other global banks. when you look at the runway for cowen in its current form, we're constrained by our size to some degree there's certain businesses we could be in or would be in if we had the financial resources. we don't but we will if you're at cowen, you can say i get to do what i'm doing really well and i might have some extra firepower if you're at td, wow, we get to do what we do and have some incremental firepower with the folks at cowen i'm excited to be a part of the td team. it's going to be a lot of fun. >> thank you for joining us. we'll have you back on to talk biotech m & a which has sprung to life all of a sudden. cut off a little bit by the a.g. but thank you very much. jeff solomon after the break, we'll dive into disney earnings with ben silverman.

his take on the price hike at disney plus and the service overtaking netflix on the subscriber counting. you're watching "closing bell. the dow is up 30 points. goldman sachs, chevron and disney adding to the gains we'll be right back.

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take a look at disney shares in the green, although off the highs of the session after the media giant reported earnings last night the company increasing pricing on its streaming, hiking prices

nearly f40% on its no ads tier o disney plus. bob chapek spoking to cnbc about the strategy. >> we thought that this was the perfect time and really sort of bring up that price value equation so we're more accurate reflecting the value that our guest our consumer viewer gets with disney plus by taking up the price. >> joining us now, ben silverman. ben, good to have you. what do you make of the price hike can they pull it off >> some of the things that were pretty interesting to me were the ad sales element of this disney actually has ad sales infrastructure and we're seeing a lot of the streamers create that component within their service. so if you don't want to pay the higher price, you can watch ads and participate in a different way. also i agree with what the ceo said i think it's unbelievable service and has a lot of content. it has library content, fox's

old content, disney's old content and continually refreshing with new content. the genre mix is big because they also have nat geo. >> wall street is applauding the streaming numbers, also the parks business is what drove the quarter. but on streaming, disney total, including hulu, disney plus, overtaking netflix in subscribers. do you think that is coming at the expense of netflix >> i think these are still unbelievable value propositions. as you look at the choices you have to make as a family and where you're going to spend your money, having these suite of services is incredible netflix offers one range of content, disney offers another range of content and we can't forget about apple and amazon, two of the biggest companies in the world that are right there

investing. i think these are great value propositions i look at it as a father, as the chief household officer in my house, and i love these services and i do totally believe in disney's brand and its suite of brands but i'm watching as netflix is building their own brands and creating overarching brands under which they can put more programming. you can't forget still the power of talent. talent is almost like ip for netflix and that's why they continually invest in it. >> that's true i will pay a lot higher prices for cars 1, 2 and 3 to keep my kids distracted so i understand that as a parent, ben. but some of these hiccups we've seen in streaming, how does it affect what you do, content, the race for content and what these companies are paying for it? >> luckily we're very much in a genre mix and we do tons of nonfiction content so we're partners with netflix and the untold brand, which is a sports documentary series.

we have two big ones launching on august 15th, one about the americas cup race in 1983. and we have tons of shows on disney that aren't the big ticket scripted shows. we have the bear grylls series over there on nat geo. so for us and our spunky little independent company, we're strongly positioned for this i think there's going to be more growth in the alternative genres i think we watched as documentaries have exploded and are becoming a bigger and more important part of the mix and they're 1/100 of the cost that big motion pictures that deliver audience and scale for us and where we sit, we are in a great position. we also believe in talent and have deep standing and long standing relationships with big talent those big talent are more and more important to these platforms as is the ability to produce at cost efficiently an that's what we do. >> when you were talking about the different streamers and value propositions, you

mentioned disney, netflix, apple and amazon you did not mention warner discovery. i'm curious what you think the strategy is over there as investors have struggled to figure that out? >> as the producers of "chopped," the number one food show in the world, we believe that they have a great mix also. i know i've watched a ton of their content and am subscribing to all of them i'm also looking at what paramount plus is doing and just a couple of shows have driven the growth of that service as well so i think this is just we've anticipated it what hasn't fully happened is people are still subscribing to cable and adding these services. at a certain point when they look at their total monthly spend, if you replicate the streaming services and are willing to live without some of the live functionality of cable, no offense cable platforms, you're going to see a way this ends up becoming cheaper in the long run i just see lots of opportunities for us as a content supplier and i see room for all of these

brands but the real big story to me on disney in addition to that ad piece which seems to be a giant revenue opportunity for all these companies, because these have been walled gardens they have been environments that the advertisers haven't been allowed into, and the advertisers need to reach audience at scale. now that they're going to open up advertising, i think they're going to see a lot of money come into the doors that wasn't there before and increase their total revenue. and then international -- >> a lot of people are worried about it if we go into recession. >> well, they're going from zero, they had no ads. so literally anything will be incremental for them in opening that door. so i think there's going to be lots of opportunities. and then transactions. like where transactional advertising staurrts to happen n the ability to click and buy which these services have enabled by technology on the internet. >> ben silverman, good to get your take on the streamers right now. appreciate it from propagate.

here's where we stand in the markets. up 21 points on the dow. it is still hanging in there the s&p 500 has turned positive. the high was up almost 50 points and we are at the lows of the day right now. the nasdaq was sharply higher this morning, up 171 points, and it is down half a percent. it's technology that is weighing on the overall market along with consumer discretionary, health care and staples. still ahead, a top health care analyst discusses high rising fears could impact a trio of drug makers hurting those stocks. up next, wall street is buzzing about a well-known investor taking a big stake in "the new york times. we'll bring you the details, next

what is wall street buzzing about today? "the new york times. shares popping after an s.e.c. filing revealed that activist investor value act took a nearly 7% stake in the media company. leslie picker with the story any idea what they want here, leslie >> hey, sara we have some idea at this point in time. value act revealing its stake in a 13-d filing earlier today. the 11 million shares owned at an aggregate price point of $350 million makes value act among the times' top holders valueact saying in the filing that it plans to have future discussions with directors and officers about topics ranging from management to board composition and whether it makes

sense for a valueact employee to become a director there. valueact also says it will discuss operations, dividend policy, financial conditions, m & a, business strategy, executive compensation, and corporate governance so a large swath of topics. bloomberg also reporting on a letter that valueact sent to investors including additional plans that included a more aggressive rollout of the subscriber only bundles, like the athletic, cross words, cooking and news, potentially even wordle. "the new york times" saying that it's aware of valueact's statement, adding as we do with other shareholders, members of our management team have had conversations with valueact to hear their views and share hours. the board and management team will continue to make decisions that we believe are in the best interest of the company and all company shareholders, sara >> i feel -- yeah, i forgot that they own wordle. they can probably do more to

monetize that after everyone i know plays it. >> monetize or make it harder, i don't know >> yeah, some of them are hard i would say it's like 50-50. leslie, thank you. leslie picker. rivian shares, take a look, charging higher ahead of its earnings after the bell. up next, the key number investors need to watch for in that report. plus energy rallies and rising risk for some big drug makers we'll take you inside the market zone, next your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire lily! welcome to our third bark-ery.

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bell" market zone. ali mccartney is here to break down the crucial moments of the trading day. we've got julia boorstin and evan segerman. ali, i'll start with you on the broad market the dow holding the gains, the s&p gave it up, the nasdaq gave it up and then some, nothing severe, down half a percent or so what are you telling your clients to do? have the last few weeks and the bullish turn in sentiment changed anything for you >> the honest truth is not particularly look, it feels good. there has been a pivot in sentiment, that is for sure. and the momentum, you can see it daily in the market. you saw it all of july and august but a mentor of mine used to say that, when it's bad, it's never as bad as it feels and when it's good, it's never as good as it feels. so the combination of the strong jobs number, the cpi yesterday and the ppi doesn't a trend make

but it definitely makes it feel like the worst, sort of the stagflation scenario is out of it and that a soft landing is more probable. and that is why you're seeing the momentum in this market. and i think what it has to do, i was talking to our prime brokerage the other day and they're seeing gross leverage from discretionary managers at a three-year low so we've gone from this market that was dominated by what we call fear of losing everything, managers saying i cannot continue to post negative returns like this, to fear of missing out. i think only time and subsequent inflation prints and federal reserve meeting will tell us if this is sustainable, sara. >> but it sounds like you get why it's all happening. >> totally. >> or you're not totally convinced that we've seen the lows or you should be buying back in. >> no.

i wasn't convinced necessarily that the negative was as negative as it should have been. but i'm also not as convinced that this is as positive as it should be, and let me tell you why. we have had a lot of great data. we've also had a lot of really concerning data. so last week, the new york fed came out with its credit card data biggest change in 20 years in terms of a 13% year-over-year credit card debt that means consumers are feeling it my public company ceos are telling me that they're starting to see that behavior of constricting, whether that means buying smaller sizes or buying less and when you talk about all of the financial tightening that's gone on in this market, there's a lag effect we're talking about matching data that's backward looking with policy that is going to have forward implications. so i've said on this show before, my kids asking are we

there yet? we are not there yet, but this feels good and demonstrates why you need to be in the market why time in the market is more important than timing the market. >> alli mccartney, thank you stay with us we're going to talk disney now big winner in the dow after beating wall street's earnings estimates after a huge sales increase at the theme parks. earlier today on "tech check" b bob chapek talked to julia boorstin listen >> we're seeing no softening at all of our demand and we think this bodes well. remember that with the lead time for international travel, we haven't even seen our international travel rebound yet. so the numbers that we're posting right now are largely on our domestic audience. once that comes back, i think that's going to put more demand into our pipeline. >> julia joins us. i watched your interview, it was great. he said it like five different

ways that they're not seeing any sign that demand is slowing down what were your takeaways >> yeah, it's so interesting i pressed him because he used on the earnings call this word flexibility with pricing at the park i said does that mean you're going to raise prices more they faced criticism for charge sewing much for a ticket to the parks. he said look, we have so much data about how much people are spending at the parks, how much they want to spend and the visitor trends it sounds like they'll maybe have more tiers. they're already doing variable pricing that has turned out to be very effective for them it's all about using the data and using that flexibility it's also something he echoed around the theatrical window of how long they're keeping films in theaters. it seemed very bullish and people are going to keep spending and it seems like that international piece of the pie is what's fueling this long tail rebound in the parks

once everyone starts traveling to the u.s. again, you're going to see more parks traffic. >> julia, the other piece of it is obviously streaming and wall street liked those numbers what did you get on the outlook on whether the streaming growth can continue and how they're competitively positioned here with a lot of the names in the sector rising on the back of disney this afternoon. >> yes and remember that disney just announced that they're going to be prices meaningfully, raising the price of its disknee plus service by $3. i pressed him on this because we did not see much growth and i asked whether he's concerned about that coming to a stop entirely and he said no. he stressed the content, the fact that they have premium content that they believe will continue to drive people to the platform over the long run, they did lower their guidance for those hot star subscribers their 2024 guide anance is loweo

they're pursuing profitability as they make calculations about content and what sports to invest in. energy is the best performing sector. pippa stevens joins us everyone is getting excited that gas prices are coming down and oil prices are coming down and we're getting inflation relief what's the story here. >> that's right, sara. on the same day the national average broke below $4 for the first time since march, brent crude broke above $100 again and that gas was up 9% at one point so we are seeing a return in strength in commodity prices and that is boosting the energy sector, the leader today jonathan krinski saying the sector has just about the most compelling setup than the majority of the market the firm had been bullish since may but they have reset and established a new base with improving relative strength, this could be a place

for investors to look. and you know the sector is still the best year to date but is down 15% since the june high and that follows a very strong earnings report. year over year second quarter earnings jumped 300% that was the best by far out of any sector and now analysts are raising their longer term estimates on names like schlumberger and devon >> alli, do you recommend the sector wti having a good week, up 6% so far. >> absolutely. i think you have to ignore a lot of the noise that we've seen and focus on some of the comments that were made last hour which have to do with the structural demand and how much it is growing for fossil fuels if you have a commodity that is -- you know, you have the supply issues that we've seen exacerbated with opec, with the

term oil in russia and ukraine, you know that it's growing you know the demographics of the globe are needing it more and more the policy has made it harder and harder certainly in this country. so yes, we should be investing in green infrastructure but it doesn't mean that the demand component is falling and so structurally whether it's the commodity itself, the producers, the pipelines that service the toll roads, this is for the next ten years plus going to be a huge source of need to fuel our economy just as you're seeing with semi conductors in terms of fueling the other economy and what's happening to that. so energy is definitely a place that we would like to be the high dividends that you see are very important the structural components are going to make it continue. and as we continue to rebound from the pandemic, the demand is only going to get more and more. >> yeah, up more than 3% right now. up more than 6%, energy sector that is on the week. but still about 15% off the

recent highs pippa stevens, thank you. take a look at some of the pharmaceutical names pfizer and others all trading lower on concerns over litigation of zantac warnings about how they will be impacted by the trial. the drug was withdrawn from the market after the fda said it produced high levels of a cancer-causing chemical. joining us now is evan segerman. i guess the trigger for some of these stock moves, evan, has been some of the analyst warnings about just how big of losses these companies could face as a result of the litigation what do you expect >> well, from a pfizer perspective, i think the litigation risk is pretty low. they only marketed the drug from 2000 to 2006 yes, i understand the potential overlap with their ownership in haleon, but they marketed over 15 years ago when they had the drug in hand, they did all the required checks

from fda and didn't see any of these issues i think you have to draw a direct conclusion that this chemical does cause cancer we haven't seen that yet it may cause cancer but we don't know when it comes to litigation, you have to show that intent i'm not a lawyer, but it seems to me that pfizer is pretty far from the litigation risk. >> anyone that's had heartburn has taken zantac so obviously this is going to be key. what's the timeline here, evan, for some of this litigation? >> this litigation will take a long time, right i think it was just filed. and for what it's worth, this has been in the pfizer public filings as a risk for several years now. i think it's important to know that this litigation takes time. it's lawsuits in multiple courts and of course then it's subject to appeal. ultimately pfizer, if found liable, could opt to settle. they're on track to generate a

hundred billion in revenue even if it's a hundred million, that's a drop in the market for what they're generating this year in sales alone. >> given that you don't carry some of the bigger players that are maybe in the cross hairs like gsk -- >> right. >> -- why are the projections so large? is it because this drug is so widely used and widely manufactured >> i looked at some of the commentary on the analysts notes. hard to say where they're getting their numbers from it could be because it was so widely used and there could be a potentially large class. but again, going back to pfizer, their overlap from 2000 to 2006, i think sanofi will have more risk than they do. >> evan, appreciate it let's hit rivian, set to report its quarterly results after the bell investors will be paying very

close attention to the ev maker's production guidance. phil lebeau joins us phil, what's the magic number here >> 25,000 vehicles, sara that is what the street will be looking to see if the guidance from rivian changes for the full-year production the guidance that they set earlier this year, 25,000 vehicles let's see what they say about that guidance when they report their numbers. also what does the ceo say about the supply chain issues that they faced in the first six months in the year and there's the reservation rate it has been growing at a fairly steady clip. we'll see if they have any update when it comes to that don't forget, we get the numbers within the next 15, 20 minutes or so and we will have the analyst call starting at 5:00. sara, back to you. >> where is the positioning of this company there were such high hopes, phil, when it went public and it's been a pretty disappointing and bumpy ride since then. >> i think it got way ahead of itself that's not the responsibility of

the company as much as it is investors sat there and said, wow, is this the next tesla? and there are some that believe that it could eventually rival tesla. but nobody said they were going to do that out of the gate but investors piled into the stock and that's why you had a really bumpy ride shortly after the ipo. it got up to $170 a share and then came down to $20 a share and now it's trading close to 40 if they can show stability, if they can show they have production at a steady pace, they're comfortable with the supply chain, i think that gives some support for where the stock is right now not sure it will go up much from here but it will probably give some support. >> got it. phil lebeau, thank you very much we'll be looking for those rivian numbers after the bell. alli, as relates to ev, i know you don't talk specific talks, but these parts of the market that have been beneficiaries from the inflation reduction act as well as the better risk appetite that you alluded to in

the fomo trading, what do you do with them next because it feels like at this point a lot of the good news is baked in, and i'm talking about pockets like an ev name or the solar names which have really run. >> yeah. so look, i think there's still more room to move on some of the solar names, for example because although there has been a lot of euphoria there, we're just at the beginning of that transition there could be decades, decades more so from a thematic perspective, those solid companies that are in that space are probably -- it's probably time to take your gains and go into more quality value type stocks. from a thematic perspective, you know, there is probably years to decades still to go there. but you bring up a good point, which is what should you be doing and how should you be investing in an environment where you have had this sentiment and pivot change we really think the playbook has

not changed. so quality and value are still where you want to be remember what i said about the financial tightening and the distress that many low-end consumers are feeling as you see these cpi numbers still being really, really challenging and sticky in the food and shelter space. so you really want to prepare for a multitude of scenarios, some of which could be positive, some of which could be challenging. so staying hard in quality, especially as it's trading well below where it has traded in pre-pandemic recessions relative to some of the more growthier stocks is really the place you want to be you want to continue to be disciplined. but yeah, it may be time to take some gains in some things that you really feared wouldn't recover so well. >> so you're not a fan of the meme stocks, which have had a great comeback, of the ark innovation fund, which has had a very strong rally, the unprofitable tech names, all of those pockets. when you say quality, that's not

what you're talking about? >> no. to be a fan of those, what you have to believe is that the inflation numbers that we saw absolutely were a peak and will come down swiftly. remember, the fed is talking hawkish about managing to 2% inflation. while it's thrilling for us that we got to 8.5, we have a long, long way to go you now have a fed funds priced in at a little over 3, 3 and 3.5, so you really have to believe that the soft landing scenario is coming in order to be leaning into those kind of stocks while i'm keeping my fingers and toes crossed that's where we're going, i'm certainly not planning for it. >> alli mccartney, it's great to have you here for the market zone thank you very much. as we head into the close, i just want to show you what's happening. the dow has remained positive, up 13 points, thanks in part to disney which is the biggest contributor to the dow gains

not so much for the s&p 500, which has dipped red later in the day. it was up as much as 50 points earlier. it is going to end with a small decline. nothing severe that's thanks to strength in energy, financials, industrials and materials allclosing the day higher tech was an underperformer, that's why the nasdaq is down 0.6 of 1% still higher for the week heading into the friday. that's it for me on "closing bell." see you tomorrow now into "overtime" with mike santoli. welcome to "overtime." i'm mike santoli in for scott wapner you just heard the bell so we are just getting started in moments we'll get a fresh read on the health of the ev market when rivian reports results. we'll bring you the breaking numbers and instant stock reaction as soon as those numbers hit. also ahead we'll hear from goldman's tony pasquariello. what he sees playing out in the market right now. we begin with our talk of the tape is there a chance the bear market is now dead or is the rally off the mid-june lows just a giant head