profitable and satisfied i talked to bernstein with all these negotiations and they forecast trucking rates that are 13% lower today and will continue to decline along with air and ocean freight. kelly, over to you. >> frank, thank you very much. speaking of the supply chain, why china's heat wave can bring even more disruptions. we'll delve into that on "power lunch" which begins righ ♪ ♪ indeed it does, kelly. thank you very much, and welcome, everybody to "power lunch. i'm tyler matheson kelly will rejoin us in just a few seconds. another bad housing number this morning, bad money existing home sales down 20% from last year we're going to hear from the man, robert schuler, k. schuler, that's the guy on how bad the housing slowdown will get. plus natural gas prices soaring

again, up 28%. it's the summer! 165% this year and the nat gas stocks have seen similar huge gains. will prices head even higher heading into winter. those prices, kelly with more. >> the market is nervous today, too. the dow couldn't hold its gains and we are back down by 92 points and the s&p up two and the nasdaq up 24 the chip names are the best performers in tech right now on semi, again, a big gain. this one's up 35% in the past month and we're about to hear from applied materials, as well. tyler also mentioned nat gas and energy is the best performing sector with devon among the names heading higher and apa, strong performers across the board. ty >> we start with pain in the housing market this morning july existing home sales, those are the ones previously owned dropped nearly 6% it's the biggest place in the market and the slowest pace of sales since may of 2020.

this comes after housing stocks fell by 10% last month and earlier this week, home builder sentiment hit the lowest level since before the start of the pandemic our next guest sees more trouble ahead for housing. robert schiller, professor of economics at yale and the co-founder of the aforementioned kay shiller index. professor, welcome it is always good to see you >> hi. good to see you. >> i'll start with the one that may be more technical and that is homebuilders. if you've got housing starts declining and you've got home builder sentiment dropping, doesn't that put a problem, a wrench, a spatter in the gears for the future especially when overall we don't have much inventory coming on the market talk to me about that. >> i teach economics and one of the fundamental principles that when demand goes up and price goes up there's a surprise

response, but we're not seeing that, and there is uncertainty at this point we should be seeing prices go up in destination areas and then there will be a supply response and we we'll come back down >> why aren't builders building? >> yeah. you'd have to ask the builders, but my idea is it takes time to change your -- a period where we discover that we can work remotely and that means that we want to build houses in beautiful places so like miami or tampa with the k shiller price indexes, those places demand increases and it's quite strong, but how long does

it take would abobuilders to st coming out with new projects to expand the supply there. >> obviously e it, it's not a tn the switch kind of thing and increase the production line from x units per hour to y units per hour and these are longer term you look at miami and tampa, and you look at montana and you look at some of the areas that are now. let's get to the question of home prices. they have risen dramatically over the last couple of years. that seems to be slowing down. it is very rare in the united states, isn't it, professor, for home prices actually nationally to decline, and are we looking at that now? >> we might be the mercantile exchange markets national home price index based on our indexes is in

degradation, and the idea that people are expecting home prices to go down or are sufficiently worried that home prices are going down that they will be willing to take that futures price. >> are we looking at something on the order potentially of 2008 i keep reading, hearing that consumer balance sheets are so much better than they were back then and there's so much less leverage in the market and there is more caution and so you might not expect to see the kind of foreclosure crisis that propelled or sunk prices the way they did in 2008 >> well, yeah. i don't forecast the recession of the century as people call that although it does happen that home prices fall below their -- before the mortgage balance and

that's when people have an incentive to default otherwise they may sell the house and not default. >> how long are these housing cycles i mean, i remember because it's matheson's law that when matheson buys real estate you are on six months either side of the peak, okay that's the way it is i bought a house in 2004 i would say within six months the market peaked and then the prices started the level and the decline and came to the 2008 and '09 and they were down, down, down it didn't come back until 2012 if this cycle is like other real estate cycles, how long are we likely to see that plateau, that decline, until you get to the basin and then you start coming back and then will you tell me because that's when matheson wants to get in. if you look at the plot of the k

shiller index you will see it's a rather smooth curve. it looks very different from the stock market and it's not professional and we're seeing professional investors coming in more and the amateur market, and so you expect to see a smooth change and that means it's going up and home prices must continue to go up for a while it could be years and then they'll start slowly fading down, but this isn't 2004 again. it's hard to hear your story >> i've gotten used to it, professor. >> i remember 2004 and that was a year of great excitement about the home price index >> yes >> i don't feel the same vibe as this time, so i don't -- i don't see it as falling as far.

>> that's good news. i am worried that home prices can go down in nominal terms and it has happened, as you know, recently that sets an example that some people might repeat. >> again, for those trying to get into the market this might be bad news, as well professor shiller, before we go, can you offer sort of comparative remark about the stock market which, obviously, is a lot choppier, but housing is a key part of the business cycle. so based on what you're observing there what does it mean for where markets are going? >> housing markets and stock markets are not very correlated. you might think they would be, but they're over the last century not so i think for portfolio investing, stocks, i have a ratio called the caper ratio which is priced by the ten-year average of real earnings that ratio was really high

it's in the beginning of this year and it's come down. so it's high, but it's not so high i definitely think that investing in the stock market maybe not overdoing it is a good idea >> on that note we shall leave it and professor shiller great to have you with us. you have the shiller index and the matheson indicator just remember that in your scholarly work, please >> all right >> i want to be a footnote that's all i ask th thanks, professor. let's get to the market. our next guest called for a big summer rally in june saying it would be led by big tech and that's exactly what happened so what does he see over the next few months and barely from stifel >> i am seeing dogmatic bears and people clinging to their

positions and they can't talk themselveses into a recession and only into a bad trade. we have the vix index falling and if you look at long term rate futures we use 12th euro dollar contract and 36-month rate futures they overlaid perfectly with the ten-year real yield, the tips yield and that, in turn, describes or determines valuation for the market, and so as that has begun to top out, p-e ratios have gone up and earnings weren't as bad as expected we've got somewhat better than expected economic growth in the recession which was our call and you've got lower inflation on the horizon which is our call. when you get that, you're going to go into big tech and you're going to go into growth stocks and that's what's led since june >> and so, if you were to look

at the s&p at its current level and you look forward to the end of the year, do you think it closes higher than it is now if so, how much. >> that's a great question if you look at the fed, they're obviously using what's called open mouth operations and they're jawboning and they would like to get inflation coming down, but they would be relieved and our models are showing headline cpi will be 3% by december so that's a huge drop. that data would be reported in january for december we've got five inflation prints through the year coming up energy, food, goods all going down dramatically. services, sticky, but that also shows signs beginning to peek out. when you look at core pce which the fed talks about and obviously, the headline leaks into the core, but we think the headline will hit their 2.7% goal so all of this is supportive of

a choppy market waiting to hear what the fed does next and i fully expect the fed to pause on the december 14th meeting on the summary of economic projections comes out and when that happens, i've been saying 44, but i can see 4600 on the s&p very easily by year end and led by big-tech growth >> part of that, barry, you think energy prices will stay low and what gives you the confidence or conviction to think we won't see them rise again? >> i think the energy prices will converge on sort of what's implied by 10-year break-even inflation and when that happens you're looking at about $85 for brent oil which is what we use, brent crude. that's also in line with the futures as you get into late '22, early '23, but keep in mind

that inflation is a flow variable in the sense that your comparing it to a year over year number we'll be down dramatically over 85 with the inflation-type levels in 140 and that would be disinflation, in fact, deflationary as you look toward year end beginning of next year, there are a lot of pieces moving around and around inflation, but i think it's opinion a part of slowing down and slower growth is not a bad thing the stock market, it just depends how the yield settles and why we pay for the market and why we watch tips >> barry, thanks for your time today and for your updated thoughts >> barry banister with stifel. the eti is down 20% this year and worries about china's economy which is now facing a new issue and it's a familiar one to a lot of the parts of the

globe right now. it's the heat and it could lead to more supply chain problems. and growth or value? it's an age-old investing argument, but can one stock be both apple down 30% from january to june before rocketing back is it a value stock? is it a growth stock what is the company telling us at almost 3 trillion in size at almost 3 trillion in size we'll be right back. mornings are our time, and i couldn't let stiff joints slow me down. so i started taking osteo bi-flex every day because it has joint shield... ...clinically shown to improve joint comfort within 7 days. osteo bi-flex - available at your local retailer and club.

>> welcome back to "power lunch," there's always a debate whether a stock is a value name or growth one. sometimes it's pretty clear. what happens when it's want so clear? take a stock like apple and its service and business is growing big while the iphone business is pretty steady. as an investor is it a growth stock or a value maim and how do you determine? let's ask bill smeed at the smeed value fund i want to extend this question to all of faang at this point. how would you categorize them? >> it's a wonderful time to talk about this and we've been talking a lot in the office about where we are in cycles and history, and you always prefer to buy a wonderful company that you have confidence will grow over the next 20 years and do so when it's deeply out of favor for one reason or another.

they stumble or something goes against them in the world and then the stock cheapens up dramatically and giving them an entry point. it's what charlie munger did for warren buffett it got him thinking about hey, it's better to own a wonderful company at a reasonable price than it is to try to buy the deep value stuff that warren was trained on in columbia >> absolutely. we've seen how well that's paid off. for you, that approach cana, ply to any quality stock and for apple, any time it sells off, if you think it's quality, you should be a buyer. the reason why we ask the question is a lot of the investment world does the style-type investing they're either value investors or growth investors. >> and the regional public say they want value stocks and others say, no, no i want the growth names and the performance they saw in the last decade and has a name like apple matured beyond that point or

have they become less good stewards of sort of growth capital and are they changing their stripes? >> well, i never want to argue with the master, but we know that the companies that reach the largest capitalization and have pretty universal popularity among analysts are unlikely to offer above-average returns over the fall in ten years. we did a study recently and we looked at the ten largest cap companies in each decade for the last five decades and the prior four decades underperformed the index every single time and two of those ten or two of those four decades, you lost money, absolutely so -- i've missed apple four or five times, but to coming off the financial crisis and the

bottom of the market in '09, most of what we did was buying the starbucks' the home depots and the cabelas. we were buying growth stocks at ten times earnings which is hog heaven for a value guy for a firm like us to be able to buy so if you look and you say, well, apple was trading at -- i don't know, say it was trading at 22 times earnings when it bottomed recently and for a mature company that's not a huge bargain and it probably shouldn't be at a huge bargain because of what a wonderful company it is. however, if you want to make above-average returns you'd have to buy that below 20 so let's give it to amazon that it corrected and it corrected all of the way down to 60 times earnings aws is a wonderful business, but i'd rather have target or walmart than have their retail delivery business.

pi think that is very difficult, and i can't imagine in the long run that company maintaining a 60 multiple. >> so you mentioned the light went on when you mentioned way back in 2009 and you were grabbing the starbucks, the cabelas and others that were selling at discounts which are today's starbucks and cabelas? >> well, kelly can probably answer this question since she knows. we think over the next ten years the homebuilders will do quite well, so we like d.r. horton, and you know, you just had barry banister on who we respect a great deal he sent us a chart in 2020 because we use his firm's research and it was relative to stocks for 250 years so what weave been trying to do is get growth out of companies that normally don't grow like occidental petroleum, like d.r. horton is normally just a very

cyclical company, but there's 92 million millennials that want a house. so whether whether we want a recession doesn't matter to us we just want to build houses the next ten years and let the chips fall as they may. >> so why have the home builder stocks -- i asked shiller, why are those stocks so lambhammered why are the builders which is preposterous >> no, it makes some sense because of the horrible, ridiculous debacle in '02 to '06, literally bludgeoned everybody in the industry. our transmission system of our economy, et cetera, et cetera, and so people were afraid we were going to get a boom bust like that. so the analysts that follow the homebuilders and many people that work in the industry now cut their teeth in '04, '05, and

'06 and they're scared to death. remember, the three biggest home building peaks of the last 60 years were 1972, 1978 and 1984 and those were at mortgage rates dramatically higher than we had now, but there was an inflation zeitgeist. in the one thing in talking and i listened to barry, in the '70s the fed would attack the inflation, it would back off and as soon as they backed off the inflation would take off again too many people baby boomers with too much money chasing too few goods. we do not agree with them, we think that we are in an inflationary era mathematically and talk to all of the people that wait on you at restaurants and ask them what they get paid compared to six months ago >> yeah. we have to leave it there, bill. thank you very much. your insight's always

appreciated. >> have a good rest of the day. >> still ahead s cisgo, we'll hit that one -- that's a blast from the past cisgo. china's heat wave in 06 years closing plants to close as well as its own seat of power "power lunch." we have power here we have power here no new projects means new project managers. you need to hire. i need indeed. indeed you do. we'll be right back. visit indeed.com/hire and get started today.

lunch," everybody. goldman sachs and nomura both lowering their forecasts for china's gdp for a host of reasons now including a factory shutdown, but this time it's not because of covid it's because of heat eunice yun is live in beijing for us eunice, how hot is it? >> it's really hot, tyler, in some parts of the country 110 degrees. china's heat waves are some of the most severe since 1961 drying upland along the country's longest river, the yangtze. those areas in central and

southwestern china rely heavily on hydro power so authorities have been mandating power rationing for factories and supply chains. factories are being told to suspend or reduce operations, cut working hours and grant high temperature holidays for staff and then all of that, of course, to limit electricity until august 24th. the area is home to suppliers, to apple, intel, tesla as well as toyota, and the power rationing is now extending beyond the factories so to homes, offices and to malls. residents are being told that they should expect brown outs and take part in a conservation, in an energy conservation campaign which means setting your air-conditioning at a max of 78.8 degrees and no elevators. tyler, you have to take the stairs >> wow is that in high-rise buildings as well? >> that is in high-rise buildings as well. >> oh, my goodness

eunice, stay as cool as you can at 78 degrees. [ laughter ] thanks very much eunice yun reporting for us live in the middle of the night in what looks like a very hot and murky -- a hot and murky beijing. let's go to leslie picker for the cnbc news update leslie >> hey, ty, the u.s. government will hold trade talks in taiwan. in response beijing warns it will take action if necessary to shave guard its sovereignty after beijing fired missiles following house speaker's nancy pelosi's visit to taiwan earlier this month rapper asap rocky has pled not guilty he is accused of firing it twice in the direction of a former friend during an argument and will return to court november 2 understand streaming services drew more viewers than cable tv for the

first time according to the media firm nielsen streaming represented a recordbreaking 34.8% of total television consumption last month, just edging out cable's total viewership over the same period it's a new era back over to you >> wow leslie, thank you very much. our leslie picker. ahead on "power lunch," natural selection, while oil prices seem to be on the downturn from their highs, nat gas are still strong and is it time to take profits with the 60%+ rallies. fears in the spotlight, the industrial giant set to report after the bell and what will its results say about the state of the economy. "power lunch" will be right back

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welcome back, everybody. 90 minutes to go today the dow can't quite seem to get back above water let's get caught up across the markets on stocks, bonds, commodities and the massive move in natural gas and the implications there bob pisani kicks it off for us bob, what do you make of these markets? a lot of divergence today. >> yes, flattish overall and on the advance-decline line and

energy is moving and big tech is as well. take a look at sisco sisco symptoms was not a great earnings report and chuck robbins was talking about strong demand and that's had a nice day and they make chips for electric vehicles and most of the other chip names are moving along, too. micron, advanced micro the chips haven't been a big factor in the rally. she was mentioning natural gas here the s&p energy sector and highest levels rid now since the middle of june and energy was moribund for a while there and it was having a big day and oil is at 91, and devon, marathon, shay shay and these are high-beta energy names when you get to factors like commodity moving where are we on the s&p? frankly, we're nowhere on the s&p and remember, we've had a terrific one and two or three weeks prior to that the s&p

moved about 10%. so time for a pause here and that's perfectly reasonable and that's where most traders are at this point and the reason we're due for a pause is the s&p is expensive and we talked about the multiple going up and it's 18, 18.5 or so and there's an assumption of a soft landing and mild recession and an assumption that it will be lower and there's an assumption of a fed pivot in 2023 and the earnings growth is at 5% for 2022 at q3 and q4 and still positive. so keep this all together, kelly and the good news is it certainly does not suggest any particular recession, but the market has moved very, very fast in a very short period of time >> it has, bob, thank you. >> let's turn to the bond market and rick, to me the yields are a different story than wrrt and the fed is changing its

messaging tune and not wanting anyone out there to get too dovish >> what they want and what they get are two different things and two-day charts will answer all our questions and the two-day chart and the two-year and always delivering the message of the fed and it's down two basis points and it's drifting in yield up in price and further down the curve, and we than it's found buyers and we know the recession story may be morphing. it's virtually flat and it's still down a basis point new hampshire or so unlike what's going on in europe and the yields close and a fresh month yield and it closeses at a 1 1/2-month yield and this is the big story and look at the two-day. this talked at a time look so

aggressive as a matter of fact, at 107.5, it is only one cent away from the previous high close which was a 20-year high close and here's the reason why. two-year versus the dollar plummeting and fresh one-month lows and pound versus the dollar, and the greenback reigns king not just on its own inherent fundamentals, but weakening fundamentals in europe kelly, back to you >> explain why we have weakening currency and europe's bond yields are moving higher what does that tell us >> it tells us that the times of managing and manipulating interest rates, keeping them negative for years and years is over and to try to normalize those rates is going to be a very, very bumpy ride. >> that is a very worrisome mix,

at least the way you laid it out, rick. thank you very much. our rick santelli. let's turn to the energy market which is a big part of the story and the culprit may be for the inflationary pressures and growth problems europe is dealing with pippa stephens is here pippa? >> hi, kelly oil is jumping more than 2% with wto we claiming the bullish inventory report the market remains in a multi-year tightening cycle and catalysts and recession fears are established and this in chinese demand remain unknown. hiel oil can the end of it yore, due to tight supply. let's a gain of 6.2% and 41 and this is lifting the energy sector which is the top s&p group and upstream players apa,

marathon oil and devon are leading those gains. finally, another volatile session for natural gas. u.s. prices were up more than 4% at one point, but now ending here in the red. over in europe on track for another record close with it up 7% >> thank you very much, pippa stephens the commodities has soared this year and they've seen incredible moves and let's look at the year to date changes and eqt has more than doubled and chesapeake, just trailing that and sandridge has done roll sharp moves. he's energy director of research at truist securities neil, do you pocket these gains or chase them from here? >> not at all. we think that the best has just started. to me, based on continued demand doesn't have to be incrementally that much higher, but the story

is capacity, capacity, capacity and that's just the lack thereof. you have limited lng capacity heading out of the u.s. and we're 90% full and one of your frequent guests said over and over again, the limited capacity in the u.s. of natural gas midstream is limiting what these natural gas companies can produce. you have the five-year natural gas inventories now almost down to their five-year historical lows so the setup is much higher. >> the setup is much higher and yet we've seen the trade fall over the last couple of months what do you say to the wounded bulls out there? >> oil is a little more difficult because being such an international commodity, you know, you can have a lot of other influences out there with what goes on and unfortunately, a lot of times that even some of these peer gas companies and you

mentioned eqt and catera both sort of get gets investors need to get in there, natural prices have peas and the super spike potentially that -- and i get that guess stocks have gotten s swept inwith the oil trade and investors need to pull these out and look at them separately. >> if we get a super spike in price of the sort you describe, where does that take the u.s. price of natural gas and how does it lever through to the european price where it's going to be a very hard winter >> it's very difficult tyler, it's a great question the equivalent in europe iss

almost $70. >> that's breathtaking. >> in the u.s. i would put it at $10 to $15 after doing this for 20 years it sounds crazy and you put it side by side with europe it's nothing and even with u.s. prices at $9 are hitting 14-year highs you could tell the price to say europe is constrained it is a whole level beyond that and the problem we have is the uslng is at 90% capacity and it is going to expand and it is going to expand at the slow process that we can build these facilities unless russia somehow changes paths, you know, again, europe will stay high and they'll take any lng production that we can tip them >> all right well, we are -- dumb struck here, i guess -- >> truly we are silent. you have silenced us, neal, and i know we'll see -- that's a compliment i know we will see you again

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>> shares of deere have been on fire up 23% leading into the company's earnings seema mody joins us now with a look at what deere has to deliver to keep that going hi, seema. >> hey, tyler, farmer confidence has recovered in the last month as wheat and corn prices stabilize plus those tax deductions incentivizing partners to buy more agriculture equipment and that's why deere shares have rallied 25% from its recent low however issue the ceo of agco, the key competitor said supply chain issues are making it difficult to schedule delivery the key number to watch when deere reports tomorrow are

cancellations. are farmers willing to wait it out or are they giving up their place in line and as always, investments in technology will be key it will outspend its peers with industrial by one to two times on research and development and that's one of the reasons why it is listed and tech and robotics etf with a 4.5% weighting and wall street wants to know when will it expect on drones and ai start to pay off and that will be a key point of discussion with the ceo >> and the idea of going electric i thought it was interesting what we heard last hour about concern over their debt levels and if they make a big transition like to evs could that worsen a problem that keeps some investors away? >> it's interesting because they are outspending their peers and that's perhaps why their debt levels are higher than some of their peers and at the same time making electric tractors in reality will be a huge boon for farmers where oil prices are going up and that's a big input cost if they can rely on a badly

fueled electric tractor which is something they're hoping to get to market on 2026, now with the inflation reduction act which gives them an extra incentive, it could be a whole new market for the ag industry, but time will tell. >> they can demonstrate it's worth it for the long run maybe they'll be forgiven for the debt in the meantime. that's what we all try to do, right? se seema mody rngsonng earnings, one on the eain, e on the settlement and one on the downgrade and one on the downgrade three stock lunch is next. against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create (dad) we have to tell everyone that we just switched to verizon's new welcome unlimited plan, for just $30.

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welcome back time for today's three-stock lunch. looking at three down movers cisco is higher after reporting better-than-expected fourth quarter earnings verizon slashing the price target to $41. david wagner is here with our trades good to see you. what do you do with cisco? >> you know, cisco is a very difficult name to analyze. on one hand the stock is trading at 14 times earnings on the other hand, the company is facing difficult comps moving

forward. in a nutshell, yes, the company beat on a lower bar as expectations were reset last quarter. the street was calling this quarter for negative 3% growth ended up coming in flat. as an investor you say flat growth, i guess that's better than down 3%, but that doesn't get me too excited i went to a kid rock concert last night, that gets me excited. these numbers do not i know you have to focus on the future, but order growth was negative 6% year over year the company goes wait, wait, it was up 15% sequentially. the fourth quarter, that tends to be one of the seasonally strong quarters. that makes me worried in the future looking at that when you get negative year over year growth and negative sequential growth we've seen downgrades on this space on macro concerns. i think there's a lot of

sentiment out there in the name due to innovation issues they're losing market share in almost every single segment of their business from networking to security. i think valuation, if i owned it, it would keep me in. but over the longer term i wouldn't be an owner given the lack of execution on innovation. >> you look like you're in my kitchen to be honest with you. that's okay. obviously, you like kid rock but also the old course at st. andrews. let's move on to walgreens. a large judgment against them, cvs and walmart yesterday. is it really $650 million i believe is what the amount is but payable by those three over 15 years. obviously there are other cases coming they will appeal this. is that alone a reason to sell, which is the rating you have on this >> no, i would not sell on that

issue itself the opioid issue, while it will continue to be a headline for walgreens and cvs, because they chose to fight these cases on a case by case basis this happens to be one of the larger ones. you had a series of verdicts come out of florida earlier this year unless these companies change their tone and go after a global settlement which i don't see happening right now, it will only remain a headline risk. i think on a side note, that walgreens do probably have more of a liability problem than cvs because, one, they had to pay out a pretty large settlement back in 2012 with the dea on this issue secondly, they had to control their own distribution, something cvs did differently. that's not why i'm a sell. the verdict doesn't change my thesis we don't want to own this name because of the structural issues they have. the company has become a price taker. over the last seven years they had probably 1,000 basis points

of gross margin degradation because of reimbursement rates continuing to get reset lower and you couple that with the fact that management underestimated the positive effect that covid had on their business, potentially creating more difficult comps next year i would stay far away from this stock. >> five words on verizon what do you do with the stock? >> if i were to get five words this downgrade is a rearview mirror analysis. majority of what they said is already priced into the stock. i like verizon at these levels >> i think that was about 18 >> that was good that was very good i love the kitchen love the kitchen, man. >> you have to do it >> david wagner. >> looks like my kitchen >> right >> i totally agree in the changing world of television, live sports still hold their value how much

we'll have numbers behind a huge new deal next on "power lunch.

. we had a ton of changes in college sports and it's all driven by money. the numbers are getting mind numbingly huge dominic chu is here to look at the big ten's deal >> this is big money and a ten-figure deal, likely the biggest media rights deal in

sports history the sports conference agreed to a seven-year deal worth north of $7 billion college football, likely the first thing that comes to mind when it comes to seeing headlines about this kind of the deal the big ten made it clear in its announcement earlier today it would be about not just football but things like men's and women's basketball, also olympic-style sporting events. as part of the deal, three broadcast partners will air big ten content between 2023 and 2030 that is fox, cbs and nbc, which includes the nbc peacock streaming video platform and full disclosure, nbc universal comcast is the parent company of this network, cnbc >> you go ahead. >> does this mean that if -- that the ohio state/michigan game will only air on one of these networks as part of that deal >> yes the schedule as it lays out now will look like a noontime game

that will be broadcast by fox, a cbs game that will be around the 3:30 time slot that the s.e.c. game fits under, and -- >> that's how s.e.c. plays >> that's moving to abc/espn nbc gets the nighttime game, like sunday night football >> people think the big ten, s.e.c., everything else -- >> commissioner kevin warren, congratulations. that's it for "power lunch." >> "closing bell" starts right now. stocks are stuck in a range today as earnings, data and the fed remain in focus. most important hour of trading starts now welcome to "closing bell." i'm sara eisen look at where we stand in the market dow is the only one that's down. really it's unchanged. the s&p 500 up, it's a turnaround from this morning energy, technology and utilities are the best performing sector real estates and health care