not. the nasdaq the hardest hit at 1.73% down, rising bond yields also hitting the tech-heavy index. and that's going to do it for the halftime report. have a great weekend "the exchange" with kelly evans coming up next thank you very much, frank hi, everybody. i'm kelly evans and here's what's ahead this hour the inflation guessing game. as pressures have eased somewhat, the bulls have teempb wall street. but one inflation expert says, hold on, growth stocks will come back down to earth and some of them have this week already. we'll delve into it. plus, streaming, screaming, and is it curtains down for one major media chain. what some of the headlines could be telling us about where the world of entertainment is heading. and three buys and a bail. the name that gena sanchez is crushing it on all fronts and

will continue to, even in a slower economy but, we begin with today's marks and let's begin with the nasdaq that's down almost 2% right now, a 225-point drop the nasdaq down 1% and the dow industrials, call it the outperformer, it's only down half a percent as i mentioned, a lot of pressure on some of the growthier parts of the market, as interest rates have moved up substantially. we have options expiration that's been adding to the volatility if we close at these levels, the nasdaq will pose a weekly loss for the first time in five weeks, believe it or not here's the ten-year yield. 297. we're close to cracking back around the 3% mark, which is pretty extraordinary, given the moves we've seen not just this week since we were down below 280, but really over the last several weeks now. this is certainly the area to watch. we had a sudden sell-off overnight in bitcoin, as well, sending that to a three-week low, below 22k we're still below that level now. not much news low, but that's an 8% drop. and it's been a tough week for

the ark drop this is one of the worst weeks ark has had of the year. meta seeing losses after morgan stanley cuts its price target, citing the low monetization of reelz. meta, 168 today, down almost 4%. it's one of those weeks where the data can give you whiplash let's review before we bring in our next guest on monday, the index terrible. set the tone, huge miss at negative 31. that's why bond yields were so low back then. the same day, the nahb numbers also coming in with a huge miss. these were seen as leading gauges, obviously not a great sign but fast forward to tuesday. industrial production showed better than expected strength. it's been one of the key pillars throughout this expansion. then the all-important core retail sales data also coming in stronger than anticipated and a welcome sign of health for the

consumer and thursday, perhaps the most important leading economic gauge. jobless claims actually go better last week with fewer of them filed on that note, annette markowski is chief financial economist at jeffries annetteta, welcome this weekended very differently than it began. and what do you think the message is here? >> look, it's obviously a mixed picture. housing is still very weak it will continue to move down, but to me, the consumer is very important. and it really does look like we hit an inflection point in july, with gas prices declining, inflation basically stalling real wages increased in july by half a percent, month over month. and that was the first or the largest increase since 2000. so this narrative around negative real wages squeezing the consumer, that's inflecting and that's starting to move the other way. in august, real wages will be up against almost certainly because inflation's on track to actually

contract our models suggest the cpi will be down about 1 to 2/10 in august so again, that will drive another increase in real wages and i think that sets the stage for a reacceleration and real consumption. there's no evidence that nominal spending is slowing. and really, a big reason for that squeeze in the second quarter was just this massive price drop, which is clearly reversing. so what consensus is looking for that downward momentum to just continue to accelerate to the downside, i think the surprise in the third quarter is actually that real gdp is going to accelerate pretty meaningfully >> and you've been correct about that up to this point. and i think of setting the stage, we have jackson hole next week we're already getting a lot of very pointed, i would call it, fed speak. it's kind of refreshing, actually, to hear fed members sort of popping off about inflation the way that they are. but then there are discussions about whether there's a split at the fed or what next week might hold so what are your expectations?

>> look, there's no question the fed will maintain the very hawkish message. but i think you have to sort of break it down, right there is a question of how high will they ultimately have to go? and that's really what they've been pounding the table on, right, suggesting the terminal rate might have to raise to 4% and then stay there for a while. but they haven't been as aggressive in terms of talking about just continuing to accelerate hikes in fact, i think the message with respect to the pace of hikes has been a little bit more balanced we saw that in the minutes you know, the fed now understanding or underscoring the two-sided nature of risks. they're obviously aware of being behind the curve, but they're also worrying about maybe moving a little bit too far, given the long policy lines and what has already been delivered so, you know, i think for the september meeting, it's still a very, very close call. we're actually leaning towards 50, because we just see inflation, the slowdown in inflation, the declines in

inflation expectations, sort of giving the fed a little bit more wiggle room and allowing them to move a bit less graggressively and frankly, it makes sense now that we're approaching the neural sort of rate territory. >> i guess my final question, and it's not maybe necessarily one that you can answer, but it's, does it make sense to you, the behavior of interest rates and we see how sensitive they are to this recession argument, right? weak data on monday. we were below 280. stronger data by today, and with the fed speak, we're basically back at 3% we've been rangebound, but we keep kind of having this upward pressure, maybe some people are saying it's more what's coming out of europe. but what's your gut feeling about it >> so, i think directionally, it makes sense, right like, my base case is we'll get to a 4% funds rate by march, and certainly the market isn't yet priced for that. so i think the fact that we're repricing in that direction is not surprising the timing is a little bit

surprising, because the markets sort of spend the better part of the past month ignoring fed officials who were saying, hey, terminal rates are too low, we're not going to be cutting next year. and all of a sudden, the markets are listening this week. so the questions will change i think the cpi numbers out of the uk may be sort of spooked the market a little bit. but i don't -- i think the market will have a hard time getting to that 4% terminal rate being priced into the curve, until we actually get closer to 2023, because there is -- you know, part of it is maybe a misunderstanding of the fed's reaction function, but the market's also having a lot of doubts about the fed's ability to hike next year, continue to hike next year, and the economy's ability to withstand those hikes. and i think, you know, the market just won't have the confidence in that until we get quite a bit closer to 2023 and kind of get confirmation that the economy is still standing >> and it's an unusual feeling we usually talk about, you know, we're pricing in events three to

six months from now. and you're saying, this is going to take so much convincing for investors, that it basically will have to have to happen in realtime, and we'll have to see the fallout in that case annetteta, great to have you thanks for your time today have a great weekend don't miss our live coverage from the fed's annual jackson hole summit next week. we'll be in wyoming where the chair will be set to speak steve liesman will be all over it let's turn to the markets now, where my next guest warns kind of like we heard from annetteta, that inflation could stay high longer than expected, which is also what we're hearing out of certain fed members these days which fed actions will prove most supportive for the heart attacks. let's ask charlie bribrinskoi at aerial investments i guess the question is, there's often perceived to be this trade-off, right the fed can be a little more dovish in the near-term, maybe where do you see it as them

having the greatest bang for the buck for the markets and what's the right course they should take for investors who want to see positive, you know, returns on risk assets for the next several years here? >> well, there's the right course, that i think that they should take, and then there's the course that i expect them to take and unfortunately, those aren't the same right now the fed got embarrassed. the fed officials who said there was no inflation and then when there clearly was inflation, said that it would be tra transitory, and now that it's clearly not transitory, they're trying to say it's all about an overheated economy it's not about an overheated economy. it's about way too much money supply, and way too large deficits and way too much stimulus those are what have caused the inflation, and it's going to take a while for it to come down the short answer is, they should do nothing to provoke a recession. they should not be so draconian in their policies that they send us into a recession, because this economy on its own is in

reasonable shape but i am worried they were embarrassed and they'll try to prove that they've got it now and that they're going to do some hawkish things, so i am worried about what they're going to do >> meaning you think they'll overdo it to make the appoint about, hey, we're really serious about inflation, this is going to sound crazy, but would that be a good thing? you know better than everybody that risk stays persistent maybe it's not the worst thing for them to err on that side versus doing little. >> so, let's just talk about wage pressures for a little while. wages are going up at less than the rate of inflation wages hav gone up 5%, and wages went up 8% wages s went up 3% there is no real wage explosion. that's just not true and so, i don't want the fed to cool down the economy. the economy is kind of already cool on its own.

i don't think it's in a recession, but it's not overheated so the short answer is, i don't want them being aggressive to create a recession that otherwise wouldn't occur >> maybe the way i would say it, and then we can move off the topic so i don't bore people to death here, is it possible that inflation started the wage pressures to some extent obviously, there's mix, there's pandemic, but we know people responded to headline inflation by sort of bidding that up but is it possible now that the tightness in the labor market and those pressures are what pulls the inflation rate higher. that we've had a complete role reversal here. that's what it feels like is the risk that, yes, 6% didn't drive us to 10% inflation, but it could keep us from going to 2. >> that's 100% right that's why we're not going to have no inflation going forward. that's why we'll have 5%, at least, over the next 12 months is because people who have been burned by not getting a real increase in their wages in a tightened market are now demand ing real increases in their

compensation, which they're entitled to. that's why it's not going to zero i'm not downplaying any of that. we're talking about the fed and what the fed should do and what the fed should not do is pretend like we have an overheated economy, which we don't. >> i want to get into a whole nominal gdp thing, but one of your stocks is very much in the news i want to get to that. steal a little bit from our next chat to do so. m madson square entertainment looks like it's talking about spinning off a bunch of stuff. is this a move you're happy to see? it's a move that reflects what i believe, which is that the stock is ridiculously cheap. we think the stock, which we talked about a week ago, and i did not know that this was coming but they are doing this because the stock is clearly, in their judgment and in my judgment, worth more than 100 and it's trading in the mid-60s so they know that the market doesn't like the sphere in las

vegas, which i like, so they'll leave alone the asset that everybody loves, which is madison square garden in new york the numbers that came out have been excellent the numbers that came out of madison square garden sports were wonderful they made a lot of money these are great businesses that will hold up in an inflationary environment. quality real estate does well in an inflationary environment. sports teams do well in an inflationary environment they'll isolate that and those of us who like it will own it. >> so will the sphere -- final point on this, so my understanding is they're going to spin out the venues and the entertainment and the licensing. b what's going to be left then, just the sphere? >> this is what's tricky when they say, spin out the venues, they're not spinning out madison square garden. they're spinning out -- they're isolating the sphere and the restaurants. everything else, madison square

garden network will stay they're going to isolate the sp sphere, i think. this is very complicated this is why we're having trouble with this. but the point is to let people who don't like the sphere still own madison square garden. >> final word, charlie there are other stocks you would like energy could turn out to be the spoil sport for the back half of the year do you want to comment on energy prices and ow thow that's going go back to everything that we've talked about >> this comes back to what people are thinking inflation is going to go away so oil prices will go down a lot, in conjunction with a weak economy. i don't believe any of that. i think the economy is going to be okay. demand for oil, there's not bee enough exploration for oil and gas, prices will be high the name that i own is trading at three times earnings. that assumes a massive drop in the price of oil they are going to print money in

this environment, with natural gas at over 9$9, they'll make a lot of money oil stocks can do very well in this inflationary environment. >> i can't believe they're at three times earnings, after being up 35% this year just crazy reminds me of the builders, but not going to go there. thanks very much for your time today. we appreciate it >> thanks, kelly, we'll miss you. have a great maternity leave >> thank you don't miss a cnbc special battle for the consumer hosted by our own courteney reagan she'll break down this week's earnings, the spending data, try to find what it all means for the consumer from here that's tonight at 6:00 p.m. eastern. coming up, a special edition of three buys and a bail to cap off this busy week of retail earnings and with the xrt on pace for its best month in a year and a half, our traders have some opportunities for investors. but first, new data from nielson suggests that viewers watched more on streaming than

on cable for the first time ever last month does it mark a turning point in the media landscape? we'll debate and as we head to break, here's a quick check on the market, where we're still seeing the worst performance, the dow down half a percent and that ten-year yield up at 297. we're back after this. for your consideration, the world's most innovative eyewear, turboflex. turboxflex frames are engineered with a 360 degree hinge disguised in the design. for maximum comfort, flexibility, and performance that stands the test of time.

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welcome back to "the exchange." the media world undergoing major shifts right now from streaming success to stage far-right to movie meltdown let's start with nielsen figures that reveals that for the first time ever, viewers spent more time streaming than watching cable tv 34.8% for streaming, 34.4% for cable tv let's bring in ed lee, media reporter for "the new york times" and a snbt contributor. ed, great to have you here can't wait to get your thoughts on all of this it's obvious even the content companies, they're betting on streaming as their future. >> that's been the bet for a while now, ever since netflix re-ordered the world everyone at first dipped their toes, but then going full stream, i guess you could call it we've seen this story before we knew this was going to be happening. i think this is an interesting

milestone. they just edged past cable but the key to really think about this is this is a gradual shift. this is not like where it's a flip of a switch and now all of a sudden everyone is watching streaming instead of regular tv. people will continue to watch regular tv, especially broadcast, given their hold over the nfl. they just renewed a media rights deal with the nfl that cost like $10 billion a year so people are still going to be tuning into broadcast and probably still some cable, given the sports that are still on there as well. it's more of a question of how much sport is going to remain versus how much more you want to watch everything else on all the other streamers. >> it was this summer in the sports quiet period that i felt like our household made the switch and even when we were watching the tour de france, it's on peacock, the nbc streaming service, and the next thing you know, we were on that and watching other stuff i felt like, we can be dinosaurs, but we've made the leap and the sport test this fall

will be a big up with. z amazon will have nfl games and those nielson ratings suggest that this is the future. amazon will have nielson ratings and advertising, and even for sports, it feels like it's going to be all about streaming. >> i think you make a great point. i think to the extent that streaming is really, really winning, just in terms of hearts and minds, it's the sports i tune into peacock for a tour de france, as well as a premiere league it's huge on peacock the other straeeamers, as well, whether it's espn plus, i think paramount plus has sports as well wherever i'm tuning into a streaming general, it's going to be for the sports first. that's where the main sort of draw is going to be. everything is sort of ancillary to that. >> even know there was going to be a tour de france femme, you know and then i'm watching that it's just -- anyway, it was kind of a fun experiment, but it's obviously more of an experiment as it looks like it's taking

over the landscape speaking of the landscape, what's going on with msg we talked about this with charlie last hour, but a spin-off of madison square garden, shares of ms d msge are population after they announced they're exploring this that has the licensing agreement with the knicks, rangers and regional sports networks. 5.5% pop in the shares, ed what is that really all about? >> i watched the segment earlier. i think charlie's right. it's a response to investors not liking the weird mix of businesses that were in this they split off the entertainment and the sports business two years ago and investors seemed to like that now it's like, well, why do you have this weird restaurant and sort of las vegas business tied into this. what does that mean? especially during the pandemic when a lot of live and hospitality things weren't doing that well. fine jim dolan, he responded if let's split this thing off now and you

have the restaurants in one corner and the other venues, like msg as well as the cable networks, the regional sports networks in the other thing. that's the thing they're spinning off i think it's a smart move. if you're an investor, you want these things to be separated, because they're very disparate types of businesses. at the same time, you have to look at, the media business is that much more naked it's still the busier part of the business, but it is structurally challenged. regional sports networks were all the rage not too long ago, but it's getting harder to justify the high rates they're continuing to charge the cable operator >> it felt like it turned on a dime, really that brings us to what's happening with the movie theaters "the wall street journal" reporting that cinneworld is preparing to file for bankruptcy within weeks how much does amc's meme stock moment distracted us from what's really going on in this business >> right this is a clear example, if you

are operating movie theaters, you either have to be a mean stock or file for bankruptcy these are not great choices. and i think you hit the nail on the head the whole amc trade sort of obscured the bigger picture, which is that movie theaters, they're not doing so great there are only so many "top guns" you can release in a given year and despite the strength of disney and the marvel franchise, there's going to be a lot of off years. and the whole sort of culture of going to movie theaters has really shifted people are staying at home or going to other things, not spending as much, there are still inflationary pressures you know, going to the movie theaters was a cheap form of entertainment. certainly cheaper than a broadway show or going to like a theme park, that disney has. so that was always the value of it now it's sort of like, well, that's not so cheap anymore. and, you know, i think movie theaters are at this cross roads of like, what do they really want to be do they still want to be that cheap entertainment?

they can't charge as much as they used to, either that, or they have to go high end they have to make it such a great experience that you're willing to shell out more money for. >> has there been real differentiation between what amc is doing and what the likes of regal or others are? and should we just expect at some appoint, it used to be so important, could they collapse at all with a name like arc mc, kind of taking the crown, maybe that i have been more innovative, more tech first, whatever you want to call it and i don't know if that still has anti-trust implications, but i do wonder. >> there are anti-trust implications to that kind of consolidation, though at the same time, they're so structurely challenged, it probably needs to happen in some form but even after that, let's say that goes forward and that's allowed. what do they then do amc did try that tact towards subscriptions not too long ago and that did not work. people -- there's always a small segment of the user base that

were sort of like abusing it and losing money on that it was an interesting idea they tried to innovate, but it really didn't work maybe it was a failure of execution. maybe they can go at it again. but i don't really see what that sort of technology solution is, other than, you know, they become their own streamer in a weird way. that sort of defeats the whole purpose. i don't see what that solution is going to be i'm not in that business i'm not necessarily the best person to think about that but again, from an outsider's perspective, as an investor, i just question the whole value of it going forward they need to shift how they think about themselves, a my explanation. are they high end, low end if they're neither one, i don't think consumers will see the value of it. >> well said, ed great to have you here thanks so much ed lee from "the new york times. speaking of meme stocks, bed bath shares plummeting after cohen exited his stake they're down 40% today will he face regulatory scrutiny

and what happens to the company now? we'll explore. plus, it's no secret that lower-income households suffer the most from high inflation, so how are they changing their spending habits? the numbers and the companies most affected. as we head to break, here's a look at the dow heat map with j&j and merck, the health care trade leading the way. about ten stocks are in the green. boeing and salesforce the biggest laggards with the dow down overall 217 we're back after this. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done.

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welcome back to "the exchange." dow was down 319 points at the low, we're about 100 points off that level you can see the red arrows across the board the nasdaq down just about 2% now. shares of wayfair are plunging

after saying they would cut about 5% of the global workforce. these shares are down 84% from their pandemic highs of 369. door dash is ending its delivery partnership with walmart next month. it ends a four-year agreement. and starbucks is dissolving its ceo role at the end of the fiscal year. the current ceo will be transitioning to an advisory role before departing the company. interim ceo howard schultz also leaving starbucks at the end of the calendar year. we could get an update on the ceo search at the company's annual meeting next month. starbucks town 1.5% today. over to tyler mathisen now for a cnbc news update >> kelly, thank you very much. here is your cnbc news update right now. the nation's largest employer, walmart, expanding its abortion coverage for its 1.6 million employees. according to an internal memo

and effective immediately, walmart's health care plans will cover abortion services and travel costs for employees and their family members who are insured through walmart when the pregnancy presents a health risk to the mother. the u.s. government is setting aside doses of the monkeypox vaccine in advance of more than a dozen planned pride parades over the next few months 50,000 doses will be allocated based on factors like the size of the event and risk of the attendees. official say they are sending up to 2,000 doses to north carolina for a parade this weekend. and after a summer of flight delays and cancellations, the department of transportation is telling airlines to improve customer safety or they will force them to -- customer service, excuse me -- or they will force them to the d.o.t. also announced that it is creating a website that it hopes will easily show each airline's policies regarding cancellations and delays and tonight on the news with

shep smith, the latest from ukraine. more ukrainian strikes behind russian lines. are they able to push the russians back? more on that tonight on the news >> tyler, i'll see you soon. thank you. coming up, a special consumer edition of three buys and a bail including this name up nearly 40% from its lows two months ago can the retail rally roll on that's next. ♪ ♪ i was having relationship issues with my old bank. it was just take, take, take. so i moved to sofi checking and savings. get 2.00% interest, and earn up to $300 when you set up direct deposit. sofi. get your money right. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed.

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welcome back to "the exchange." we started the year with a vicious sell-off now we've had a rip-roaring two-month rebound. as the dust settles and with the market's overall valuation back to pretty normal 18 times, what should you be buying and what should you be selling out of right now? joining us is cnbc contributor, jena sanchez, and she has our consumer retail focused three buys and a bail for us today welcome. let's start with amazon. growth name for you. say it defies the recession rhetoric the stock up 30% in two months and you like it here >> if anything, the fly in the ointment for all of the recession talk was that consumption just didn't let up

it changed, but didn't let up. and amazon was a big beneficiary, because people continued to order from amazon, so amazon's guidance was actually quite positive, their revenues were positive and remember that amazon also has a tech play, which is amazon web services, which is one of those stories we really believe in all in all, we think that even at the valuation that amazon has, we think it's still something that you want to hold in your portfolio. >> you also like kimberly clark, that is name number two that's a buy for you here a pricing power play you say defensive name to own no matter what the economic cycle, and hey, it's up 6% the past three months >> and kimberly clark has definitely shown a lot of talk around recession -- not just recession, but inflation fears and what that's going to do to consumers. finding companies that are not only quality, have good cash flows and revenues, but also finding companies that can flex into their pricing power, that's

important. and kimberly clark was not only able to maintain their earnings. their sales volumes sell a little bit but people still need things like diapers and feminine care and adult care and tissues and cleaning products, all of those things are still things that you need, and they were able to actually slightly raise prices, expand their margins and expand their profitability during that inflation scare. >> 23 times p\e, you say stick with it. and finally, constellation brands a serving of defensiveness, we might not usually think of it that way, but you say, look, it's rivaling kimberly clark, up 7% in the past few months. >> absolutely. and one of the story lines out of constellation is not only are their numbers kind of trending in line with previous, like pre-pandemic and even pandemic mo months, but they're actually running a little bit ahead of those. these are brands like corona,

these are not expensive brands so as the story line goes, that we might have to get defensive, this seems to be one of those companies and names that just continues to perform >> all right those are the buys let's bring us to the bail, then, which is drumroll, please, best buy why don't you like it? you think walmart could be a warning here >> well, i think the walmart earnings were a little bit of warning for all retail remember that the consumer continued, but what they bought continued to change. and we think best buy was really at the, you know, losing end of that best buy is a big box store. they are selling some high-priced electronics and we think that those are not the things that consumers are willing to spend money on right now. and if anything, the continued shortage of parts and supply chain issues has affected that kind of part of the market the most and so we just think that best buy as a place to put your money right now suspect a great place.

>> there we have it, three buys, one bail, stick a cork in it for constellation brands gena, thanks so much for your time today we appreciate it >> thank you, kelly. still ahead, another retailer shares bed bath sinking. they're down more than 40% just today. we have the details of a hasty exit, next as we head to break, let's get a quick check on markets the nasdaq is at session lows, down almost 300 points right now. that's more than 2%. the dow down 262 don't go anywhere. (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. so you get unlimited data for just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com.

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sold his entire position in the company, only five months after taking a major stake let's get out to leslie picker with the details and timelines behind this exit it is all the talk of the town, leslie >> it certainly is behold, before our very eyes, the disappearing memeium that's what happens when a meme stock erases the premium garnered from an investor with a cult-like retail following after he or she cashes out let's take a step back it was a little more than five months ago when ryan cohen, the billionaire founder of chewy.co revealed his stake in bed bath and beyond accompanied by a letter to the board pushing for changes. the next trading decade on march 7th, the stock soared 34%. that nearly mirrors today's price action with shares down about 40 prkt currently on news that cohen cashed out the entire city of his stake. and the stock awe its fair share

in late june, the stock traded below five bucks a share after reporting sub-par quarter and ousting its ceo. this week, bby shares surged back up into the 20s and confusion over a few s.e.c. filings seemed to indicate that cohen was newly bullish. but a source close to cohen told me that in fact he hasn't purchased any security in bed bath since late march and capitalize on this week's gains to mint about $60 million. >> so do you think there's going to be a remembertory probe here, leslie >> there's no evidence or reaso why there should be. the filings were all out there, and as confusing as the filings were, the fact that it wasn't totally clear from the filing if

you're a retail investor or someone who's not as familiar with them, the new filing earlier this week, it looked like he was buying new calls that were super, super out of the money and it wasn't clear that there was a buyback that changed the percentages of his holdings, really that was due to some technicalities surrounding the stock. i think it's more on the education side of things, where there needs to be changes made because the filings themselves can be confusing for people who may not actually call themselves professional s.e.c. filing readers. >> he's on twitter he could have clarified the miscommunication i also wonder where it leaves the company itself this has been quite a distraction. an opportunity, everyone's been saying, if you're going to see the shares pop, go ahead -- if you're going to issue equity, try to save the business that's the time to do it and now maybe that window has closed >> that's the key question now i was just reading about

kirkland and ellison, some other restructuring experts were going to be quite busy in the next few weeks, just with a whole host of situations it's unclear what future holds for bed bath, but one of the big benefits to finding yourself as a subject of a meme stock that you can take advantage of a higher valuation same business model. two of the biggest theater operators. cinneworld owns regal theaters and now they're preparing to go bankrupt, essentially, whereas amc is issuing, doing this new issuance that will start trading on monday. it won't raise any money for them, because they've tapped out on that front, but it's a new separate class of shares that they could one day potentially tap that well. >> what a dizzying ride it's

been for all of these stocks leslie, thank you very much. still ahead, my next guest has been bullish on the muni market all year but says things are starting to change, and doesn't necessarily mean for the better atre tis he finding value and wh ahree potential headwinds? we have that, next technology lets autonomous vacuums work continuously around the house, but when your team has to work seamlessly around the world... you need more than technology. you need cdw who can help transform your organization with built for performance lenovo thinkpads. pre-configured for management flexibility and equipped with the intel evo platform.

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investors are typically drawn to munis because they're tax exempt and have a high yield status but showing outflows of $220 million this year, $635 million last week. and now that the inflation reduction act has passed, there could be more headwinds ahead like deteriorating credit, the minimum tax rate, and poor technicals let's just end this segment before we even start tom coslick, tom, what's going on >> thanks for having me, kelly, i appreciate it. one of the things that i spend a good amount of time, not just in the last year or two, but over the years doing is explaining to our clients, you know, based on the things that are coming out of washington, the sequestration that the 2017 tax act, you know, how those types of events are

going to positively or negatively impact public finance, right, fiscal policy in the last year and a half has absolutely had an impact the rescue plan act was very positive i mean, that is one of the reasons why it is that i have been talking about this golden age of public plans. finance because there were $650 billion that came out of that rescue plan act that was flowing directly out of public finance and again, the infrastructure package that passed last year really was a credit neutral, but where the inflation reduction act is concerned, i'd say that is shaping up to be kind of a dud. that might even be understating it because the tax policy that was included in that at 15% corporate tax rate, that there was an inadvertent way that was going to limit participation of some large banks and large insurance companies and that's tax-exempt and that will not be a good thing for municipals.

>> that's an interesting point let me go back to what you said and you're becoming more concerned about the pension issues that will come back to the fore >> so i still -- there's a very positive credit landscape right now, but i would not describe that positive credit landscape as being structural. it's not structurally positive and it is not necessarily going continue year to year. the numbers will look good this year and the numbers will look good next year and the reason for that is because of the federal money. so what i'm talking to investors about right now is i want them to trade out of some of the state and local governments that have -- where their pension liabilities are larger than what they should be and that's one of the big things that i'm talking to investors about right now before the credit landscape really deteriorates. >> and that's obviously top of mind a lot of people own this stuff there are parts of the market that will continue to do well. you like mass transit and transportation and you like

healthcare >> that's a little bit of against the grain call, to tell you the truth because there's so much headline risk about transportation and mass transit is going to react. the numbers still don't look good, but i think what's going to end up happening is where mass transit and transportation is concerned that there are going to be solutions for funding and i really like going against the grain on that one. one of the other things i like is mid-tier health care and that's the other thing where municipal investors can find additional yield >> we start this year with the performance in the asset class and now we have rates nearing 3% on the ten year. do you expect this performance to dip in the red in the months ahead. i do expect there to be volatility when that's concerned and that being said with the absolute level of where we are now and where we're likely to be over the next three to six months where we were in january and february and i like where we are where yields are concerned

and most of where the investors are from the long term horizon they really like where yields are on a relative basis. >> tom, we'll leave it there thanks for your time >> tom kozlik. rising prices hitting consumers particularly hard and it's changing where and how much they spend. that could be helping this stock, the name and why next >> also take a look at shares of occidental petroleum u.s. regulators have authorized berkshire hathaway to buy up to 50% of its common stock. bshg berkshire file an application back in early july for permission to make this purchase and we know they've been involved with the shares for quite some time and it is up 6.5% on news that rkirbeshe could buy up to 50% of the company. we're back after this.

welcome back rising prices have let lower income consumers to change their spending habits in several categories especially food kate rogers is looking at the impact that's had across the restaurant industry. she joins me with the stocks that are the biggest winners and losers kate >> we've heard all season long about consumers at different income levels seeking value with the lower end consumer starting to pull back a bit new data underscores that point in the food space broadly with lower income consumers stretching dollars by eating more frozen and shelf-stable foods and cutting back on restaurant visits. right now mpd says households under their 75,000 and eating 89% of their meals and snacks and it's up from 88% in 2020 and also half of lower income families said they will purchase more private label and less

expensive brands compared to what they were doing a year ago. on the restaurant side there's pullback as well restaurant visits dropped across all income group, but now they're most pronounced in most households under $75,000 annually those homes under 45,000 with kids cut back on five visits per person in the quarter which mpd drove a 2% decline in total restaurant visits versus a quarter ago. what's more, 20% of households under $45 t,000 annually saying they're not visiting restaurants at all due to their budgets. what stands a chance to hold up? mcdonald's and yum brands both expressed confidence at hanging on to consumers, and chipotle said some consumers are pulling back starbucks said it's on no trade down and papa john's ceo did tell us there is no better business in a recession than the pizza business, kelly. >> we'll talk about the stalwart

names and what about those feeling the brunt of this? >> so if you look at a six-month chart, you have to imagine, a lot of the casual names will be hardest hit because that's a sitdown experience and it tends to be pricier. darden is a name that bank of america has called out in the last recession and that's one name that could hold up. a lot of those casual brands are with the mobile order and pickup out of their traditional comfort zone to lure customers back in and they do tend to be a higher price ticket at the end of the day. >> is your point, kate, as you said, people are substituting by eating more at home and maybe that just benefits the grocery trade. >> not only eating at home because remember, groceries are getting more expensive and tend to be outpacing restaurant inflation and lower income consumers are looking for frozen food and more shelf-stable food and eating more pasta. so certain products are doing better with that income group because they tend to be lower

priced >> the loss of those trips that's a huge drop in foot traffic. our kate rogers reporting. while cracks may be lower end in the lower end consumer, higher end is spending strong and going big on classic cars. we'll have more details coming up on "power lunch" which begins right now. ♪ ♪ kelly, thank you welcome, everybody, to "power lunch. i'm tyler matheson kelly will be back in just a sec. here's what's ahead on a busy friday a new survey says half -- half of all u.s. companies plan to cut jobs and others hiking pay and we'll take a look at the uneven jobs market at this make or break moment and people are being asked to go back to work in office after labor day. generational plays and different generations have the same goal, to make money. ou