it's just -- i know families who have tons of kids. they have one income and figure out a way to make it work. absolutely it's worth it. it's the whole point. >> have a wonderful time off. >> thank you. >> best to you and to your family. >> i'm going to try that microphone feature for finding neem owe tonight. >> give my best to eric and everybody. >> thanks for watching "power lunch," everybody. >> and "closing bell" starts right now. good luck from me as well, kelly. you're a pro hot summer rally cooling off today as stocks add to losses on the week we are sitting at session lows welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand in the market, down 1.4% on the s&p 500. only two sectors positive, health care and energy everybody else is lower. consumer, discretionary, financials, communication services, all at the bottom of the market the nasdaq is down 2% today, so that does bring us to negative territory for the week, down about 2.5% for the nasdaq 100,

1.3% for the s&p we break the win streak. we're coming off of four up weeks for stocks not going to happen this week. our chart of the day is once again bed, bath and beyond falling off a cliff tonight along with some of the other meme names after ryan cohen completed his sale of the stock. look at the damage, down 43, more than that, percent. coming up, we will taulk to harvey pitt about the timing of ryan's sale. plus the ceo of sunpower will join us to talk about the big run-up in that stock it is up 50% in a month. let's get straight to the weakness in the markets. senior markets commentator mike santoli here with the dashboard. mike, i did notice also the vix went back above 20. >> it did. it was barely under 20 i think just a little bit -- 1% index move is going to awaken the vix were still very much

inbounds i wouldn't say a whole lot going on is upending the message we've gotten from the market in the run off. the more aggressive parts of the market getting hit the hardest as you mentioned, sara so this little uptrending we have is still in place back to the early june highs, right, that's an area just under 4200 that would be really normal and no big deal if in fact it stopped there. i would say more than half of the total rally that we've gained since mid-june, that's usually a sign that things are in decent shape. so we'll see if it proceeds anywhere from here one of the catalysts or some of the pressure did come from both yields and the dollar, so a retightening of financial conditions after they loosened up look at the 10-year yield as well as the u.s. dollar index. this is year to date, obviously going more or less in sync, very similar shapes to these charts we got very hot inflation data over in europe

global yields started to fly the 10-yoear yield pushing 3% so i don't think that, sara, just because financial conditions are snugging back up again ahead of the fed's jackson hole conference it means that you have to unwind all of the progress in stocks over the last couple of months it's not a binary thing to me that a certain level of yields means we go back down to the lows but you have to absorb it and make your peace with each new level and what it implies about the inflation and growth outlooks. >> and what can you tell us right now about positioning? part of this rally's case is that everyone got so bearish and had to go the other way. clearly people got back in, the fomo factor, but people have been hating on the rallies the whole way up. >> i would say without a doubt the real rush higher that fed off of the real negativity, a lot of that has been burned up but i wouldn't say we're anything beyond kind of a neutral standing in terms of

positioning. i'll look at things like some of the investment manager hedge fund positioning stuff they're still somewhat cautious at these levels, it's just not a big tailwind to say everyone has to buy because they're so underexposed to stocks anymore >> mike, thank you we'll see you later. let's continue the conversation now. our next guest says the action in oil and bitcoin could signal the next move for equities joining us is jonathan krinski what signals are you getting, jonathan, for stocks from oil and bitcoin right now? >> hi, sara. let's take a step back quickly last friday we did close above that 50% threshold of the entire bear market decline and we know since 1950 once you've done that, you've never gone on to make new cycle lows. so that's the backdrop again, we work with probabilities, not certainties but probabilities suggest we've seen the lows in june. that doesn't preclude a decent

pullback and oftentimes once you do hit that 50% threshold -- we tested the 200-day average this week and got rejected. there's been some macro cross currents that have not quite jived with the rally in equities the first being crude oil which is starting to regain some strength we're also seeing thatnear 52-week highs. you mentioned bitcoin. you can throw in the ark names with that as well. those have started to diverge negatively the last week or two. so i think today is a bit of recognition there is options expiration activity as well but some of those negative divergences below the surface is coming to fruition. >> wti is at $90 so we've made up some ground but we're still off the highs. are you saying the market cares

about this one because it's the inflation tell >> i think so. i think it's a little premature to say inflation is over if you look at the way commodity equities are reacting, energy equities lead commodity and those are showing relative strength we're seeing as i mentioned natural gas is near 52-week highs. in europe it continues to hit record highs and then let's not forget about interest rates with the 10-year back at 3% so there's just some subtle signs. woe may not go back to the peak inflation narrative, but i think to say that it's collapsing is a bit premature as well. >> it always feels a little treacherous to fight the fed, doesn't it, jonathan >> yeah, i think so. i think the rally off the june lows in hindsight has been a largely position-driven rally. there's positions and we're clearly quite bearish at the june lows. i think a lot of that has worked its way through the market and now i think we'll get more of a real sense of where the market

wants to go now that positioning seems to be a bit more squared up. >> and just to be clear, so you expect -- you expect a downturn not necessarily a retest of the june lows, but you expect it to be bumpy from here >> yeah. i think 4177 to 4200 was kind of the june highs in a really strong market we should probably hold that area if we pull back so i think at a minimum we get a test of that 4177 level if you get below 4177, you're probably looking at something closer to 3900, 3950 then if you get below that, then maybe this is one of those exceptions to the 50% rule that we talked about at the top of the show >> and so bitcoin, do you think the rally is over for now? >> well, you know, it had been lagging. a lot of the other risk assets off the june lows. it's really from a technical

perspective, i would say it's tough to defend it here. it's below the moving averages and breaking its uptrend from the june lows soth not a great chart there from our perspective. >> which sector stands out as a safer spot, energies made a move higher you've noticed here in the last week as crude oil as rebounded. health care is at the top of the market right now would you besiding with some of those defensive groups if we are heading toward a lower period? >> yeah, i think health care, defensive health care is an area that actually we did not like in the end of june because it had been that hideout. if you look at its performance since the june lows, it's one of the worst performing sectors off that bottom largely because everyone is already hiding out in it. i think now if you look at health care, it's resetting itself up and is a bit more attractive but you have to differentiate within health care biotech is certainly more along the lines of kind of the high

growth, long duration assets, which we would see as a bit more vulnerable here. and then just back on the defensive side as well, utilities actually are not an area that we want to be in right now. they're pretty extremely stretched on most metrics and interest rates are starting to break out as well. so i think utilities, you have to be a bit careful here. >> because they're up 8% it's the only sector higher for the year besides energy. you're saying it's not so safe anymore because it's already had the run. >> yeah. i think a lot of the defensive -- the reasons people were in them has largely been exploited. it doesn't mean they're going to go down hard from here, but i think the risk/reward is just very skewed to the downside in our view >> good time to look at the charts jonathan krinsky, thank you for joining us. >> thank you. look at shares of sunpower they have been outshining the competition, up around 50% in a month alone in the lead-up to the inflation reduction act. up next, we'll talk to the company's ceo about the benefits

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than anyone else. call and start saving today. comcast business. powering possibilities. we are looking at a pretty broad sell-off on wall street. there's the s&p 500 heat map that shows you all the stocks and you can see a lot of red down 1.4% on the day we're now down 1.3% for the week two pockets of strength at the top of the market is health care

and energy everything else is lower consumer discretionary is getting hit the hardest, names like etsy at the bottom of the list, carnival, caesar's entertainment, royal caribbean, so a lot of the retailers getting hurt hasbro and general motors are holding up financials, communication services, materials all weighing down the index the future, though, looks bright for solar stocks senator joe manchin and chuck schumer coming to an agreement to vote on the inflation reduction act on july 27th the tan solar etf is up more than 15% since then. look at sunpower, it's up more than 50% in that time period joining us now is the ceo of sunpower, peter faricy peter, it's good to have you the stock move has been very stark. is it that much of a game-changer for your business >> i think so. i think the stock move is two things, sara first, thanks for having me on, but we had a terrific second quarter. our customer growth was up 51%,

revenue growth up 63%. third consecutive quarter of accelerating growth. so i think investors are really starting to believe is this the inflection point we've been waiting for on consumer residential solar. as you mentioned, this is a historic week for the united states it's a much bigger story than the business story the inflation reduction act gives the u.s. a chance to really lead the world in clean solar energy transition, which is quite exciting. from our perspective, there's three big pieces to this bill. one, for consumers, it increases the incentive on solar panels from 26% to 30% tax credit extends it for ten years does the same thing now for solar batteries, 30% tax credit for ten years. and then equally as exciting is this piece of the bill about domestically produced content which we believe will produce a lot of jobs but also gives consumers an additional 10%

benefit when they buy locally sourced solar panels or solar batteries. so it's a historic week. it's a big, big time i think for the world as we make this important transition away from fossil fuels and we expect that this will have a big impact on our business as we go forward. >> there's been excitement before, peter, about residential solar and i believe only 4% of u.s. single family homes have it the numbers are way higher abroad 15% in germany, 20% in australia. why is there such a big gap? >> well, you're right, sara. what's interesting to me as a relative newcomer to the industry is that 3 or 4% gap pales in comparison to the estimated 60 million people in the u.s. that would save money if they had solar power this month, net of their solar costs. >> sorry to interrupt. is that because electricity costs and energy costs right now are so high --

>> well, they have been historically if you look at the energy prices from traditional utilities, they have been above the consumer price index most of the last three years but this year has been the most dramatic if you take a look at that spread, how much are we paying for our utility bill compared to how much we would pay if we had solar power, it's our belief an you'll see customers confirm this that people are seeing this as an opportunity to save more and more money but also make a big positive difference in the world. >> what about the u.s. as a real manufacturer here, because a lot of this bill and other bills like the c.h.i.p.s. act have been about this. the tariffs on chinese solar equipment did not work, right? they backfired so is this going to do the trick, actually make america a manufacturing powerhouse where we could actually export some of these products >> well, i think it certainly gives us the opportunity to serve this huge demand in the

u.s. with u.s.-produced solar panels and batteries we announced late stage discussions with first solar, who would be our partner in making a u.s. manufactured residential solar panel that we think could be the most innovative panel in the world. it's exciting. as this industry begins to take off and accelerate its growth, i think you're going to see it get into this virtuous cycle of more installation jobs and more r & d jobs and more manufacturing jobs all tied to this big transition. as you mentioned, there's only 3.5 million people that have solar today. that's 60 million we expect to increase to 100 million by the time we get to 2030. so i expect to see every home in america some day have solar and solar batteries as standard equipment. just like you can't imagine a home not having a refrigerator and washer and drier and everything else, so i think that's the world we're headed for. >> now you've got a 30% tax break on some of those expenses

of installing it over the next decade. >> for consumers there's never been a better time, exactly. >> peter faricy, thank you for joining us. >> thanks for having me. let's give you a check on whery standing in the market the dow is down about 300 points so we're off the lows at this point. the s&p 500 down 1.3%. the nasdaq getting hit the hardest today, 2.3%. higher yield, stronger dollar, bitcoin is falling, oil prices are rising these are the correlations wall street doesn't like to see those things happening it's been a bit of a reversal than what we've seen in the last few weeks. still ahead, harvey pitt is here to weigh in on the frenzy surrounding ryan cohen's selling of his stake in bed, bath and beyond. plus two big-name companies just announced major buyback plans but does that mean you should buy their stocks? check out some of today's top search tickers on cnbc.com you've got bed, bath and beyond once again with the top spot

unseating the 10-year yield which goes to number two 10-year yield brushing up against 3% as well gm is an outlier today, it's higher 2.6%. tesla gives back some of its recent gains, down 2%. so does apple, but still holds up relatively strong against technology, down 1.5%. boeing, jpmorgan and salesforce with the biggest drags on the dow. we'll be right back. we now find that 85% of individual investors are interested in sustainable investing. among millennials, the interest is even stronger. ♪♪ one of the big trends in sustainable investing is data, and the ability to understand how sustainable your investments are. by taking that information into account, investors can make better decisions for the long term. sustainability is not about one number. it's about variables like water usage, data privacy,

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makes up 18% of the float so a big squeeze higher on this news. check out shaz of general motors and home depot general motors saying it plans to reinstate its quarterly dividend and raise its buyback the dividend was suspended back in april of 2020 home depot authorized a $15 billion share repurchase plan. mike santoli with a look at what it could mean for the stock. gm is a real bright spot in the consumer discretionary world, which is the worst performing sector right now. >> a real gesture of confidence by gm management to do the defensi dividend and then do the buyback. take a look at this etf that covers the buyback achievers index. this is a three-year chart basically performed exactly in line with the s&p. if you look at a two-year, it looks better, a one-year looks worse. essentially it's a lot of companies that consistently buy

back something like 5% of their shares over the prior 12 months. so it's not every share that has a big buyback. so it's a good thing for the overall markets but doesn't always affect individual stocks. let's look at the dividends in aggregate among s&p 500 companies. this is the buyback yield, dividend yield and both of them together which creates a version of shareholder yield it's a quarterly number. it's turned back up again after the pandemic but really not that high relative to where it has been for much of the 21st century. and what's interesting is right before the great financial crisis right there, that's when really people went wild with w buybacks it's been more consistent right now. we'll see if it's part of the overall bull case or just the kay companies return capital to shareholders when they seem like they have excess cash. >> and whether it continues. there's now an excise tax on share buybacks and some

investors were expecting that to mean more dividend moves than buybacks. >> i say at the very margin maybe. but a 1% buyback tax on net share buybacks, by the way so if you issue a lot of stock through stock-based compensation and that's offset by buyback, that's not getting taxed i don't think companies are that fine tuned in their buying intentions that a 1% swing factor will matter that much but we'll see how it goes. >> mike, thank you mike santoli. bitcoin and crypto-related stocks getting hurt today. up next, a top analyst on whether this is creating a buying opportunity for investors in some of these names he covers a lot of these stocks, including coinbase, which is down almost 11%.

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take a look at bitcoin along with stocks here falling, bitcoin is down 8% in the session. that's dragging down names like coinbase, block and robinhood. joining us now is dan dolev in person nice to see you. >> thank you. >> and to have you here. >> happy friday. >> happy friday. not so much for the crypto stocks i feel like you have to be a fed follower or a macro economist to follow some of these stocks and where they're going lately. >> or a fortune teller. >> you've never liked coinbase.

>> no. >> an 8% move in bitcoin and then an 11% move lower in the stock? >> that's a great point. you're getting the move in bitcoin but pricing pressure, massive volume declines. they're running at $1.8 billion in volumes per day it's a fraction of what they did last year. and a huge cost basis that they need to cut. it's like bitcoin minus. >> the bulls say there's potential there. they're expanding beyond just the crypto trading and they have first mover advantage. >> and what i would have to say here is if you look at their non-crypto trading revenue, if you take out the interest income that they were getting because of the higher interest rates, it's actually down sequentially pretty dramatically. so this whole thesis that we can create a crypto economy around trading and outrun the decline in fees, it just ain't happening. >> but you're not a sell, you're at hold. >> i'm at hold but we have a $42 price target.

>> 80% off the highs and 80% off the lows it's a tough one to follow i also wanted to ask you about affirm which i know you loved and defended delinquencies are rising and this is what wall street has worried about. even though affirm and matt comes on and says this environment is good for us. >> the one thing people are missing. delinquencies are up but it's expected in this environment what people are mitting about affirm, it's a merchant conversion tool. it helps merchants get more sales. so merchants in my view, this is almost a countercyclical stock because merchants will be willing to accept a bigger take rate or a bigger merchant discount rate to be able to sell more stuff even in a downturn. so people looking at delinquencies and they're getting scared in reality, it's something to help merchants make more sales and that will make it a very sustainable thing even in a downturn that's what's missed about affirm. >> how bad are the delinquencies.

>> affirm has a lot of balance sheet. delinquencies are up on the abs security tiesation market. they have other forms of financing. there's no demand problem here they have more demand than they can actually finance so i think the demand for their product is there and that's the most important thing. >> also concerns about higher interest rates and what that's going to do. >> correct that's the main concern. they're interlink had and intertwined. those concerns ticked up but i think they're way, way overblown. >> which is the one that frustrates you, all the negativity on your stock the most because you also like robinhood, sofi. >> love sofi. >> so which one do you think is the most disconnected? >> i think robinhood is the most frustrating. it's the best app. young people love it their rpu went up this quarter. >> revenue per user. >> and people love to hate it and i don't understand why. >> they have been struggling they have been laying off workers and downsizing and

struggling with profitability. >> but they have something nobody else does they have the long end of retail and i think a lot of people wanting that, if you think about the ftx guys a lot of people wanting that long end of retail which they own. they have 15 million users that love the app i think eventually once they get over this post-covid hangover, they're going to thrive. so capturing that long tail retail is really, really, really hard and they have got it. >> it's good when bed, bath and beyond is up 100% but today it's down 43% and then you wonder what's going to happen to the retail trader because there's always concerns that it ends in tears. >> but it will come back, right? eventually those traders will come back. people spend billions of dollars on marketing to get those retail traders. they have got them and that's a huge asset i think if it gets too cheap, someone will take them out so this is a stock where there's a clear floor to the stock. >> dan, thank you. it's good to see you in person here's where we stand right

now overall in the markets the dow is down just about 300 points we've been hovering around this level. the s&p 500 is down 1.3% energy and health care stand out. those are the positives. energy actually just dipped into the red so it's just health care at 0.2 consumer discretionary, the banks are getting hit hard today. the communications services group is also getting hit. some strength in warner brothers, comcast and verizon, but everybody else in that group is lower right now some of the big techs under pressure as well, apple, alphabet, meta wall street is buzzing with a ceo shakeup at foot locker and whether the former ceo of ulta will be able to turn around the footwear retailers more on that next. and you can listen to "closing bell" onpodcast on your favorite podcast app. we'll be right back.

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what is wall street buzzing about? foot locker getting a new ceo and the stock is soaring, up more than 20%. marr mary dillon, who used to lead ulta beauty, will take over september 1st. it comes at a tricky time for foot locker. mall traffic has been under pressure and so is its relationship with its number one supplier, nike nike has been cutting shipments to lots of retailers and pivots to selling to consumers itself the direct-to-consumer strategy. it's something i've asked the outgoing ceo, dick johnson, many times about. >> evening yi think you have to and look at the whole ecosystem.

we've got just about 3,000 doors around the globe we've got a secret sauce in our store associates that provide great service. are we a competitor? sure we want to figure out how to service more consumers in total. >> the hard truth is that nike made up 70% of foot locker purchases last year. this year it's set to make up only 60% the company clearly needs to diversify and find ways to drive the excitement that happens when a new jordan retrosneaker drops. citigroup upgraded footlocker today on the news lifting the target to $38 from $25 saying dillon put ulta on the map in prestige cosmetics and skin care by gaining access to sought-after brands and driving years of strong growth and margin expansion analysts believe she will make it more likely footlocker will have a lasting and profitable

relationship with nike williams also upgraded the stock saying under her leadership revenue increased 288% the stock today rallying hard. up next, former s.e.c. chair harvey pitt on whether regulators should look into the timing of ryan cohen's sale of his entire stake in bed, bath and beyond. that story, plus the outlook for oil and roblox, enwh we take you inside the market zone, next at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

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we are now in the "closing bell" market zone. lindsay bell is here to break down these crucial moments of the trading day. plus harvey pitt on bed, bath and beyond we've also got francisco blanch on oil we'll kick it off with the broader market because we are in sell-off mode on wall street the dow is down about 300 points s&p 500 down now for the week and sharply for the day, lindsay. are the markets signaling that this little bull stretch could be over? >> i think it's a little too soon to cuall it the bull stretc is over. but we've had several weeks of solid performance by the s&p 500, so it might make sense to take a pause here as we come into month end, as earnings season winds down and the general flow of news will slow down we're going into a weekend and right before jackson hole where we're eagerly awaiting to hear what the fed has to say, what

jerome powell has to say, if he echos the hawkish tone we got from other fed speakers. there just might be some white space going forward so that might make investors a little nervous. >> what would you need to hear or see, whether you tell your clients or you put more money to work after we've had this good little run-up here over the last four weeks in many this week >> you know, i don't think now is a bad time to put money to work sure, there could be more volatility we are going into the month of september, which is known for volatility and underperformance. so that's one thing to take into consideration. i do think we're entering a period of more uncertainty, especially we'll hear from the fed next week. but that doesn't necessarily mean we're going to get any clear direction. we're going to need to see that cpi report we also get pce which we think will be good to hear about but also jobs data can that become a trend? we have to see how the next

couple of weeks pan out. i think the market will continue to be reactionary so volatility has been high all year i think it's going to stay that way for the next month or so. >> let's hit the latest on the meme trading bed, bath and beyond shares tanking right now after filings revealed ryan cohen has sold his entire stake in the company. this caps a dizzying stretch for the stock. investors began piling back into bed, bath and beyond this month after a filing where cohen had previously bought shares and they thought he was adding to his options, but the truth is he hasn't purchased any new securities in the company since the march buy. the confusion was because the company's buybacks increased his stake from 9.8% to 11.8% triggering a filing this week. joining us is former s.e.c. chair harvey pitt. harvey, is there a case for the s.e.c. to look into here >> oh, i definitely think so i think there's a real question about whether there was an intent here to use the meme

provisions that he has made so famous and benefit as a result of selling shares when people thought he was buying. >> in other words, market manipulation, is that what they would be looking into? >> i think they would look into market manipulation. i think they might look into general fraud provisions as well the difficulty with market manipulation is they have to prove intent so there would be an investigation to see exactly what his internal emails and discussions showed but in my view, this is definitely a case for governmental review. >> how does this sort of thing happen it feels like the wild west. and this is not a new phenomenon, meme trading we dealt with it last year

>> it's a phenomenon that was built on ryan cone's success at taking certain securities and turning them into winners and being followed gamestop was a good example of that so having developed this reputation, he in effect gets the benefit when people see that he is now into it and he's using his bulletin boards to basically tout what his investments are. and that's the kind of thing that creates a form of reliance on the part of unsuspecting investors. >> beyond the ryan cohen suspicions that you have here and the question mark that the s.e.c. has to look into, it goes well beyond that

amc and some of these other stocks as well, gamestop obviously there's a cohen connection there but do you expect to see action, enforcement action from the s.e.c. to prevent these sort of things from happening? >> i think there's a likelihood that there will be some enforcement action, but i also think it's possible that the s.e.c. will consider rule making the problem you have is that for some people, this looks like it's a game and it looks like it's a way for them to pad their own earnings by getting unsuspecting investors to follow along with them. >> you're talking about for the companies? >> i'm sorry >> you're talking about for the companies, would the companies have the blame here? >> i think that the blame is really on people who are using social media and others to tout

their investments, to obtain a following on the part of unsuspecting investors, and then have the rug pulled out from under them by simply dumping their securities with respect to the companies themselves, i think bed, bath and beyond have made it quite clear that it was in dire straits, so it was only ryan cohen's efforts that actually started a market movement in favor of bed, bath and beyond. >> but that's not illegal, is it >> it's going to be hard to show that it's illegal. social media is being used we have the first amendment, which is a serious issue but what is illegal is when people publicize their stock transactions and their likes and

dislikes for the purpose of getting others to follow suit. that is illegal. >> got it. harvey, this is one to be continued. thanks for joining us with some perspective here. >> my pleasure >> harvey pitt, former s.e.c. chair. roblox is poaching meta's head of government relations for south korea and japan. the executive who previously worked in the oculus virtual reality business is expected to grow roblox's business in asia steve, why is this new focus in asia so important for roblox how big of a coup is this? >> asia is a huge market opportunity for roblox most of the users are here in the u.s., canada, europe and throughout south american countries like brazil. they do exist in asia, especially in japan and south korea, where this executive is based, but not to the extent that they would like to grow so, look, roblox investors value the stock based on their ability

to grow users. they have had some really tough comparisons despite showing double-digit percentage growth over the last year or so the comps look really tough against covid, when you're stuck indoors and kids are playing roblox so you're putting this executive in place on that side in asia really helps them -- helps grow that user base and establish more business there. lots of gamers in japan, lots of gamers in south korea and it sounds like roblox is trying to get a piece of that, sara. >> got it. steve, thank you lindsey, your take on a company like roblox, which really has fallen out of favor from the enormous strength that it saw last year? >> yeah, i think when it comes to tech in general, it's a story by story basis, a company by company basis. you can't really group everyone together but i do think there are opportunities across the market but especially within tech for companies that have been beaten up that could -- that do have good stories, that do have good

high quality cash flow, that can edged up on the other side of this in a stronger position. because what we are starting to see is some of the economic indicators, citi's economic surprise index is starting to show signs of turning up so things are coming in a little bit better some of these cyclical sectors and cyclical stocks especially are going to benefit from that so the ones that have fallen the hardest can fly the fastest. even today tech has been up substantially over the last several weeks and it's getting hit harder today than some of the other areas. but i think that you have to dig through the tech sector to find your opportunities and be picky about it and not just throw all your money into one industry or the sector overall >> yeah, giving a lot back today. down 1.8% on that s&p tech index. let's hit energy wti is back above $90 a barrel, bouncing back from a few days earlier when it went as low as $85 a barrel energy one of the three sectors hanging on to gains this week. joining us is bank of america

securities head of global commodity and derivatives research francisco blanch. why the little run-up here back higher in oil? >> hey, sara i think the market is starting to realize going into winter we have three big drivers of demand that could uplift oil prices ike first we have this massive energy crisis centered around europe which is pushing natural gas prices above $400 a barrel for the equivalent there and, therefore, likely to result in substitution into oil. remember, at $85 a barrel for wti and $70 a barrel for some of the fuels at the bottom like residual, market fuel, you're looking at very, very cheap energy, very cheap value in the oil barrel which will be

displacing natural gas, will be displacing potentially even coal, which is trading close to $100 a barrel in international sea born markets so that's number one number two, we have more jet fuel coming. there's news we're going to see some of the asian countries downscaling their restrictions in countries with quarantines. that will drive up jet fuel demand and then today we just released a note looking at gas line demand that dives into our own bank of america data that shows we could see in our analysis an extra 350,000 plus extra barrels of gasoline demand into the fourth quarter on the back of this dip in prices american consumers are sensitive to gasoline prices so i think those factors could take us higher. >> you just published a note on gas prices there was a lot of concern when we went above $5 a gallon earlier in the summer. the biden administration certainly has been celebrating the drop so where do gas prices go next >> well, we've seen a 20% plus

drop in gasoline prices, which we think is going to result in a 10 to 15% run-up in gasoline demand into the fourth quarter we've already seen about half of that, looking at the internal data and we expect that to continue into the fourth quarter. so gasoline should provide support to the overall petroleum complex at a time when we still have barrels missing from many different parts of the world and so i think the big story for energy still remains very much centered around what's an enormous natural gas supply shortfall in europe that needs to be filled up with oil or coal or whatever it is. and i think all that supports markets. so we think we are stabilizing obviously a big negative story is china, macro data, the strong dollar did not help. but i think if the macro is sustained, we'll see oil back up

over $100 a barrel in the next few weeks. >> not great for consumers francisco blanch, thank you very much for joining us from bank of america. lindsey bell, energy up a percent this week, so it's now outperforming the broader market again. it's about 13.5% off the highs how much exposure should you have to the energy patch >> you know, i think you've got to have some exposure. to his point, what's priced in the market in these stocks from an oil price perspective is much lower than where we're at today. so from a valuation risk/reward perspective there is opportunity within this space. these companies are being prudent about their capex spend and shored up their balance sheet so there's a lot more cash in these companies they're spending less in capex and doing less in buybacks and being mindful of their capital allocation i think there's still opportunity here, especially if you believe in the near term and

into the year and beginning of next year we could see higher oil prices. >> lindsey, is consumer discretionary still your favorite sector? i know that's what you've said in the past, but since it's had this nice little run >> yeah, i still like consumer discretionary. i think there's a lot of opportunity within the services sector especially. and i do think in the holiday season that you're going to see opportunity within some of the retailers. we're getting a mixed bag of results right now, but don't count the consumer out when you have gasoline prices right now going down that opens opportunity for spending and the consumer really is focused, even though they're shifting to services and events and experience spend, they are still focused on shopping around appointments like the holidays, back-to-school was strong so i'm still in favor of consumer discretionary. >> lindsey bell, thank you for joining us as we head into the bell we've got a 274 point decline on the dow. s&p is down 1.25% which makes it

down a little more than 1% for the week the nasdaq down 2% as we speak the nasdaq 100 is down 2.3%. what's working today health care and energy what's not consumer and discretionary except with a few names with positive catalysts like gm on the buyback, hasbro getting some analyst love small caps with a decline of more than 2% as well that's going to do it for me on "closing bell. have a great weekend i'll see you in about a week now into "overtime" with mike. welcome to "overtime," i'm mike santoli in for scott wapner you just heard the bell, we're just getting started in a few minutes we'll hear from katie stockton, the key market levels she's watching, plus her take on whether apple will remain a leader. but we begin with our talk of the tape, a test of the tape all three major averages selling off today with growth stocks taking the brunt of the pain with today's losses the s&p and nasdaq snap their longest weekly win streaks of the year. so is this week's drop just