going to buy apple at the close of today you're locking into that now. >> i will. exxon-mobil, there is at least another 10% to 15% upside for this stock. >> that is an upside for the economy. i'll see you in overtime "the exchange" begins right now. thank you, scott and welcome to "the exchange." i'm deirdre bosa here is what is ahead. stocks are lower, after the fed pivot off the table, where could you find opportunity in this market and what are the technicals felling us about about a next move. and our new series leading up to friday's key employment report we look at jobs in the leisure and hospitality industry plus three b's on earnings exchange we'll get you set for reports from baidu, best buy and big lots but we begin with today's market numbers with the dow lower by about 24 points coming

back from the session lows. >> session lows that were a percent to the downside. over 300 points for the dow industrials we're now down 21 points just about flat on the session. the s&p 500, 4,053, down about four to five points on one-tenth of one percent and nasdaq down 57 points roughly one half of 1% at the lows of one day, the composite was down 1.3%. so yes still weaker but well off the worse levels of the session. we'll see if the momentum picks up in this afternoon trade speaking of that technology and the nasdaq trade overall, check out what the relative value trade is happening right now within technology. you have semiconductor etfs like the vannic, down about 1%. a little bit of outpermance for software related etfs like igf and cloud computing off pun half

of 1% and down about one quarter of one% as you look to where people are buying on fundamental basis on value or maybe covering some shorts. it seems like financial technology is outperforming right now. and then the stock of the day has to be apple. because it is a pretty heavy weighting, in the s&p and the nasdaq as well as a big weighting for the dow industrials as well. the market gyrated as apple moved below the 200 day moving session earlier in the session now you want to watch this area right here where we're at because it does represent that long-term trend line so with apple stock trading the way it has been, remember, deteriowe'r talking about a 30% move off the lows that we saw the past couple of weeks and then a 9% rollover. so as goes apple, perhaps so goes the rest of the market. >> that makes up the largest portion of it. and it wasn't long ago we were

talking about it reaching nearly all-time highs has recovered some losses in the session. perfect setup for the next segment. the fed's hawkish stance has created value names that may not be the value johan, thanks for join ug. i want to get to one ever your picks because one is nvidia, something we don't hear from a value investor it is down substantially from the 52-week high but however still more than two times the market cap of amd. it is valuation on a forward basis, three times that of intel. what are you liking about it. >> i've been adding to it recently as you said, it is tremendously sold off i'm primarily a value investor but i have very little exposure to growth and technology names so i decided to take advantage of this. and we saw the stock drop so i put it into the portfolios of many of my aggressive clients.

>> why go for one of the pricest stocks nvidia, versus an intel or an amd. >> well i have intel too intel is a value stock even though it is a technology stock and it is a rather big position for us i have no exposure to nvidia until recently and i decided to add it because i think it is one of the better companies out there in that space. however, it is very expensive even with this decline but when things turn around, this is a kind of stock that i expect to go up a lot very quickly. >> and speaking of intel, i know you like a dividend and that is why other wise in tech you're looking at plays like an ibm what did you make of salesforce last week, kind of got overshadowed by the weaker guidance but a $10 billion buyback for the first time do you think we'll see more cal capital return from tech names. >> we might see between now and the end of the year. because of course that 1% tax goes into ervffect in january

but i wouldn't buy stocks on the hopes there might be buybacks. a buy back is nothing but a substitute for a dividend. so it is just another way to return cash to investors in my opinion, it is actually a better way because buybacks are volunteer. when you pay a dividend, you force the investor to accept it and pay the tax, a buyback is a lous them to make the decision but yes, we'll see more buybacks before the end of the year because of that tax. but that is not a critical deciding factor for me when making investments. >> now behind you, you are typically a value investor i'm a tech anchor so we've been talking about that but what i find so interesting is that you've been trimming holings to buy tech. what makes you think that there is room for tech to run now especially after what we heard out of fed chair powell and his hawkish speech last friday. >> only because it is so undervalued. energy is a position that i was

buying a lot several years ago when it was very undervalued and everybody was avoiding energy. as a result, it is become a fairly large position in my portfolio. so i'm not negative on energy. i think they'll continue to rise but because it is so out sized in my portfolio, i'm trimming them and i'm using the cash to buy things like nvidia which i had no exposure to. >> and met a as you mentioned ad the biggest risk is an over aggressive fed what we saw on friday. we thought that maybe the markets had come more in line from what we've heard from fed speakers but why has that calculus changed? because it was surprising to hear from powell when the data has been better over the last few weeks but he said we need to see months of that. >> so first of all, i would say that pay attention to what the fed does rather than what it said i think the fed's actions so far have been very appropriate there is no need for them to talk so aggressively think he was trying to talk the

markets down and scare investors. but the data indicates that inflation is already waning. so i think it would be a mistake to raise the fed funds rate by 75 basis points at the next meeting. i think 50 is enough and i think 100 basis points by the end of the year is plenty. and of course the fed said it is data driven so let them watch the data i think what fed powell would like to see is more weakness in the jobs market and as i joke, maybe one day when he reports to work and finds out he was laid off, he'll know why he raises interest rates enough. >> and that is one day thank you for kicking us off great insights. >> thank you. let's hone in on the tech sector even more after a brutal start to the year. the nasdaq saw a huge turn around, saw a 21% rally in just two months but in the last week sentiment has shifted. the nasdaq is down more than 8% over that time so what happens from here. let's bring in jason, managing director of internet directory

at oppenheimer if you just heard the past discussion he's buying nvidia not just meta. which i could understand as a value play so where do you think tech goes from here? >> so, look, i think it is bifurcated i think with a large cap like a meta or google, you could look at a p.e., i think your prior guest said you have meta depending on if you include or exclude the reality losses that fall 10 to 15 times next years earnings, you have to google 17 to 18 times, you so clear i think -- you could look at this valuation support and it is about short-term fundamentals that probably drive those and we could talk about that. when you start to get into mid and small cap growth, or companies that historically hadn't had kind of cash flow earnings valuation and more multiple sales, that is more fed driven so it is kind of like a tale of two stories and so you do have

probably the bulk of tech. more fed driven where you do have some of the mega caps and i would even add maybe even an amazon to that where there is more valuations. >> i do want to look a layer down, jason, at some of the mid caps i know the names you like include uber, etsy, and match. and as you say they are far more driven by the fed and interest rates. what makes you interested in them now, same question i just asked yvonne when we heard such a hawkish tone from powell, when they were the ones to sell off first on the market on friday. the high growth names. >> sure. so, i mean, uber, we like it because you have multiple catalysts. there is nothing better to get people to go to the office than a pending recession. so we think that will be a -- people return to the office tail wind gas prices coming in also help them at the margin and then i think you've got the stock now at 17 times our estimate for next year's ebidta.

while that is not cheap, you can draw a line in the sand. right, it is not 30 times cash flow and a multiple of sales so i think you've gotten multiple factors that work with uber on to kind of match -- >> let me go back to uber for one second because it is still an unprofitable name on a gaap basis, even though they're inning bead profitability. why not go for the mid tear names in the software space that are showing profits. >> so i'm an internet analyst. if you want me to give you a time like that in our world it would be a company like integral add science. they're a $1 billion market cap. they do trade at 10 times ebidta and they have software and a technology solution to help advertisers. so did my ad run, did it run next to content that i found agreeable or disagreeable. so summarize the business. but that is the name for example.

it is the closest competitor trades at 20 times cash flow and they trade at 10 times there is a lot of companies out there. it just depends on your parameters. >> your appetite risk. when it comes to etsy, this is a unicorn in the retail space. it posted decent results that stock is up 44% this quarter. is it too late to buy this sname >> no. number one, the inflationary factors are disproportionately impacting the bottom third of consumers and etsy tends to be more of an up market platform. we've also seen that they do have the ability to drive pricing power so not necessarily on the buyers or the consumers, but they're able to extract more fees out of the sellers, because the severals don't really have other places to go, alternatives or could be more expensive on top of that, if sadd prices to do come down because there is

less demand by other sectors slowing, call it travel or parts of retail, they could lean into advertising when they see lower air prices so at 20 times negative cash flow not cheap but again a cash flow story and we think that is the kind of names that would work. >> absolutely. and in this kind of market i'm going to throw one more at you since i have you what are your thoughts on a pinterest, that is a social media network but trying to make this e-commerce pivot with the new ceo in bill ready. >> we don't cover pinterest so we don't have a strong view. we do cover snap and twitter and don't find either of the stocks particularly compelling given the factors they're dealing with if you do want a turn around play, we do like match as a turn around play and they have a new ceo from zynga they think the former ceo gave up too much ground to competitor bumble so we think at 16 times

cash flow with the proper changes you could get multiple expansion and upside to next year's estimates. >> that is way skillful pivot with a new ceo to boot thank you very much. >> thank you for having me. we have a news alert on the housing market with mortgage rates on the move. die sanaa oleic has the news. >> after pullk back in july and much of august, and the average rate on the 30-year fixes hit 5.95% today. that is up from 5.73% on friday. all according to mortgage news daily. mortgage rates losely follow the yield on the ten-year treasury and we saw that rise in the run up to jerome powell and after the speech investors still clearly reacting to his tough stance and inflation and saying he would be maintaining restrictive policy stance for smoo some time. and we did hear the ceo of toll brothers last week say they did

see a pop in demand in the first few weeks of august likely due to the rate pull back. affordability improved in july because of the drop back toward 5% 6% though does seem to be the pain level and that looks like where we're headed we've also seen home prices react from june to july with not only the first monthly decline in nearly three years but the largest monthly decline in over a decade deirdre. >> but i want to ask you, you talked about the other data recently, but first time buyer have shown some more demand. what do you think that does to that group of buyers. >> we've seen more demand, in the applications for fha and v.a. loans which are low down payment but there is not enough supply on the market to help them out on the lowerer end of the market so that is a brief bump up in the mortgage demand but i th think -- i don't think we'll see that. >> coming up our next guest said the market options is showing

bearish activity and investors are going in that is up next. plus it is the three b's edition of earnings exchange we'll get the action and the story and the trade on baidu, best buy and big lots out of the results tomorrow before the bell as we head to bleak, let's get a quick check on markets the dow industrials moving closer toward a flat line. down about 44. and the nasdaq down about 50 and the s&p down about a tenth of 1% we're back right after this. >> announcer: th iiss "the exchange" on cnbc. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want -

your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities. 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. i'm okay.

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.

welcome back to "the exchange." stocks are off session lows after sliding after tech tightens the nasdaq has fallen 1% but short positions now reaching the highest level in two years so is this a start of a bigger swoon. let's look at what the charts are telling us joining me now is jessica, director of options play has anything changed since friday and the powell speech and we saw the sell-off starting to hit ground. >> great question. essentially the market faced a triple threat last week from a technical perspective.

it was the 78.6 replacement line and the 200 day moving average and the cloud models a lot of negative impacts going into fed powell's subpoena that -- powell's speech that we needed to come down and thinking about the data and what he was looking at i was happy that there was an instance of a hawkish move and that is something that we've been saying for a while. because if you dieve into the data, or one portion of it, it is something that is coming back such as the energy sector which i know we're going to talk about in a few. >> and it does feel like there is this bifurcation between the retail investor and the short position and in the s&p and it is an indication from the institutional side, however, if you look at retail purchases of inverse etfs, that has fallen off a little bit what does that tell you about where the market is at. >> yeah, and i think it is interesting that you put out the difference between institutional and retail and because if you look at data over time, retail

has started to dominate the market so we have to pay a little more attention to that than we used to so it is certainly interesting that you see that and especially with inverse etfs, a lot of brokerage firms don't allow trades in some of those. they require extra account features to do that. so to see a spike, you have to be cognizant of who would trade that and what portion takes up retail. >> right and we've been talking more about meme stocks. today with the first guest, he was talking about trimming his energy holdings in favor of some tech and the charts are showing something similar. a lot of bearish sentiment at the moment for tech and bullish for energy, is that right. >> that is correct so we'll pulling call to put ratios so that is a bullish or bearish lenience so it is a great indicator i was surprised this morning just to see the huge move. it is a 2.5 to 1

so meaning for one bullish position, there is 2.5 bearish positions so that is seemingly bearish. and that is important even from a technical perspective because doing a huge study of pass bear markets, the lagging sector tends to lead the rally, so that is tech in this case and then also the decline. so that is something that we pay attention to and then the inverse is true with energy and we see a similar story but to the upside rather than the downside. >> a great look at two industries that have led market this is year to the upside and downside jessica, thank you so much still ahead, airlines looking to snap a six quarter losing streak but new data shows bookings are starting to take a step back we'll break down the numbers and reveal the one airline that is adding capacity. but first what should investors be watching amed of next month's fomc meeting you could track the fed's next month and as we head to break,

take a look at the dow eat map a little more green up there we'll be back. "the exchange" is back right after this

welcome back to "the exchange." markets right now, as you could see, still in the red off the session lows nasdaq regaining the level and the s&p each off by a third of 1% as crude climbs backs above $60 and oxidental is leading the group. after the company posted better than expected results, citing a recovering consumer sentiment and looking ahead tonight expansion targing the u.s. as

the first market outside of china. semiconductor are lower. semi and amd and nvidia and tier 9 among the worst performers 92% of the names are now negative this month. and let's get a quick chick on bitcoin. it is moving higher but it broke below the $20,000 level this morning. for the first time since mid-july the crypto is down 15% as you may know for the worst month since june let's get over to tyler mathison for a cnbc update. >> thank you very much and welcome to the east coast. at least three people are dead in baghdad after security forces fired on protesters there. they're unhappy a shiite cleric is stepping away from iraqi politics his party won the most seats last october but fell short of a majority the cleric has been refusing to negotiate with rival parties leaving the country without a stable government. nasa will have to wait until at least friday before it could try again to launch the unmanned

artemis mission to the moon. a fuel leak scrubbed today's attempt but that didn't stop vice president harris from touring the kennedy space center with the nasa administrator. she praised what she called the great work of exceptional public servants. >> and here is a not trying to go to the moon but did complete a journey in an effort to set a world record dwayne hanson floated 38 miles down the missouri river in a 846 pound pumpkin. he named it burta, and he told a reporter, i can't say it is easy the other question would be, i can't say why? >> i was going to say, why would someone do something like this >> it is a really good question. but this is the kind of news you don't get on those other so-called business networks. >> you have to come here >> you have to be right here. >> to get into the guinness book

of world records. >> pumpkins all around. >> coming up, it is the edition of the "the exchange." we have bida and best buy and big lots reporting tomorrow. nseram unehave more on those coum nesp xt if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this.

an aarp medicare supplement insurance plan from unitedhealthcare. medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could add up to thousands of dollars. medicare supplement plans help by paying some of what medicare doesn't... and making your out-of-pocket costs a lot more predictable. call unitedhealthcare now and ask for your free decision guide. medicare supplement plans also let you see any doctor. any specialist. anywhere in the u.s. who accepts medicare patients. take charge of your health care today. consider adding this. call unitedhealthcare today about an aarp medicare supplement plan.

♪ strutting your way into my heart ♪ ♪ take your hat off make yourself at home ♪ ♪ how about stay the night then strut on home ♪ ♪ day 1 i'm in love with your strut ♪ ♪ day 2 i'm in love with your strut ♪ ♪ day 3 i'm in love with your strut ♪ ♪ guess what i'm in love with your strut ♪ ♪ i like your strut, do you wanna go struttin' struttin' ♪ ♪ you like my strut ♪ ♪ do you wanna go struttin' struttin' ♪ ♪ you like my strut ♪ ♪ then let's go struttin' right now ♪ ♪♪

welcome back everyone it is time for earnings exchange we have the action and the trade on the three b's on bade yu, best buy and big lots. first up, bade yu reports before the bell tomorrow off a preliminary deal between u.s. and chinese regulators the street is watching for ai, cloud strength and ad retvenue growth and baidu followed the blow up this morning so investors may keep their eye out for a positive momentum in a chinese tech turn around joining me to trade it is managing director of oppenheimer. if baidu beats are you a buyer and is it too early to call it a trn around >> so far so good. as a market signal, we have seen

these turns in chinese stocks lead turns in the s&p 500 and i think it does argue that the weakness in the market is part of a long-term basing process. baidu being one of the names that we think is in the process of turning higher. i think what is noticeable, it first bottomed in march. it successfully testing that low in may and it is now moved above the 200-day moving average when we do see as a sign of relative strength in a difficult market tape here is the levels to watch. still needs to get above $157 resistance to confirm the upside reversal that would mark the stock's first higher high. so we think you side with the relative strength and you buy this stock with a stop at 142 support. that being last week's gap of both the 50 and 200-day moving average. >> if we look at the

fundamentals we have the covid lockdowns ending and stimulus from beijing, but if we've learned anything over the past few years you have to be careful when it comes to this sector we learned that from ant financial and alibaba and could we be confident that some of the regulatory overhang is cleared for now? >> well i think with all of this -- the bearish fundamental back drop here, i think what is notable is that the stock has stopped going down so, again, our read of the technical trend is that a lot of that bad news is potentially been priced in the fact that here is a stock against all of the headwinds and negatives that you name, diedra, again, hasn't been going down since march is now showing some signs of trying to push higher so, again, i think that is telling and which is what we're keen on here, the behavior of the stock's price action. >> we'll get a good indication

once they report next up, best buy, the retailer set to report tomorrow morning after cutting the profit and sales last month it is a rough year down 27% let's bring in courtney reagan for the story on this struggling name courtney, what are we look out for since they warned ahead of time >> yeah, exactly because through warned i think expectations are pretty low. and we also heard from walmart and target that their electronics category was not one of the strongest sellers as consumers really start to pull back on the discretionary purchases. as we deal abwith higher prices best buy talked about they had a good pandemic selling period as it made sense when everyone had to reoutfit their homes to both work and do school from home but since we already bought that stuff we don't necessarily need it again right now i think that one thing best buy has going for it is a sharp executive team and a very good history of operating well in tough environments so i think that that is one

thing that they have going for it but there is only so much they could do to work through some of the challenges they're working more to offer services, things that you can't order so easily online so i think there is even more focus, potentially on the total tech offering and how consumers are using that and the attachment rates there but i think this quarter is a tough one but we know that so i would be surprised if the company misses by a wide margin on what they've already told us to expect. >> and for the reasons that courtney just said, a good management team, does that make the stop attractive to you, on top of how much its already sold off. >> it has sold off if you're positively inclined, i would say the technicals are not confirming that thesis at best, it possibly is basing i think that is if the market is basing, but there are some underlying relative weakness

that does concern us that low in july, that marked a multi-year relative low versus the s&p 500. that indicates that the stock should be avoided or sold on strength it suffered a damaging break down in the first half of the year that more repair was needed on the upside. i think the trend is bearish below $85 resistance and oscillating around the 50-day average and i think it is important for the bulls to defend $71 support that being in the late july low. >> and courtney, consumer demand obviously is a place where we've seen it declining. where does best buy stand in terms of the inventory issues because they have supply chain issues for the consoles. >> yeah, so supply chain is an issue and some of these things are deflationary over time in normal circumstances so then you have a bigger concern about clearing the inventory when if comes to the discounting and then what that does to the margins every time a

new item gets an innovation, the old item is discounted further in the price that it sold for or the value that it has to the consumer so inventory is definitely an issue as it is for almost everyone across the board. again the company is good at operating and sort of managing logistics when it comes to a consumer electronics chain so perhaps there is value there in the relationships with the vendors but there is certainly not an easy quarter for inventory. >> right for any of the retailers, finally guys, i want to get to big lots, the discount retailer, slightly down ahead of earnings but up 9% over the past month and dollar stores have seen a boost in sales amid inflation. courtney, what else could you tell us here >> yeah, so big lots is one that is really big on the idea of closeouts. so a little bit more than what you're looking at with dollar tree or dollar general and both

of those reports went in different directions so i have a little bit more concern about a big lots even though we've seen more strength in the lower end retailers and the higher end retails this one does have an inventory problem to our last point on best buy something that they've had to really been working through over the last quarter but it came up a bit earlier than i would say some other retailers started to see it and so i think they're margins are really going to be in trouble here discounting looks high discounting throughout the entire chain and then category specifically and the company talked about weakening trends on the discretionary items as the quarter went on with the last quarter -- the last month of the move recent quarter really the weakest. so we know that inflation got worst for the consumer in the recent quarter i'm worried about this one. >> courtney painted a grim backdrop but this is a stock down 50% year-to-date.

>> it does here is one where the technical trends are confirming that the case laid out by courtney here it is a stock, it is been emblematic of the weakness in the industry overall the stock has been trending low for the last ten years indicative of structural weakness, one to sell on strength not buy on weakness more recently it failed at the 100-day average. that resistance level is now coming in at $26 so the tactical trade is to sell it into a pop and into the moving average the stock has been trying to base at around the $20 mark since early july so i think on the downside, that is going to be an important level for the bulls to defend. >> are there any retailers that you do like, it is fwhn confessional quarter do you think there is a walmart or a target that has gotten most of the bad news out of the way >> i think it is -- you got to

go to the specialty retail space. not only the home improvement retailer that are on the road to recovery but look into a subset like the auto retailers, auto zone, a great example coming off a new high i think you buy the pull back in a stock like azo. >> courtney and ari, thank you very much. and still ahead, friday may have marked the end of the summer rally with the erase of the gains made in august and while september brings fallout, there is a slate of happenings that will be key for investors we'll get the rundown next "the exchange" is right back

what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions 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 welcome back stocks are extending friday's losses all three major averages are lower again today. the nasdaq the underperformer, down .4% we're looking at where we could

look at softer labor conditions and why september could be a important month for stock pickers, especially this friday. >> and that is the jobs rorpt. and the important thing is we're entering a seasonally weak period, september. the worst month of the year. take a look at what will matter for september. earnings is the key here they're still up we're expecting 5% or 6% growth this year. but they're half than what they were six, seven, eight weeks ago. the economic data, you mentioned the jobs report on friday and then september 13th, the consumer price index so it is about job as and inflation and but in september we're going to have a lot of sell side conferences. these conferences are companies presenting individual outlooks for their industries and their companies. often they're not that important. this time, i think they will be. because when they last reported in july, the earnings situation may have be very different from

mid-july to mid-september because things have moved so fast big conferences coming up including barkleys and the ever core isi and well has a big health care conference all of this is the first week of september. citi has a big conference and goldman has a conference september 7th and 8th. this is the first few days after labor day and there is more in the middle of september. there are investor days coming up so starbucks and ralph lauren and qualcomm you get the idea here is that there is a lot of companies that are talking providing updated guidance from what we heard back in july. at the same time, deirdre, i want to point out that as bad as friday is and we're down today but attempting to go positive, we've had a good quarter overall. compared to where we were at the end of june, we've had big moves up small caps like the russell 2000 which is up 11%, there fos the third quarter, the

transimportants have had a nice run and even the nasdaq 100 is outperforming the overall market even though tech stocks got clobbered on friday and finally the s&p 500 still up about 6% for the quarter. >> and don't forget code that is next week. tech check will be there and we'll hear from tim cook and sandar and that will make up so much of the market and bob, could this year, i know you said that september is seasonally not a great month for stocks, however we approaching the u.s. midterm election. could that change anything >> potentially there is usually -- there is different things that happen in the midterm elections with stocks usually you get a little bit of a rockier return when it is the middle part of an election when it is the second year after a president's cycle. so, yes, it could change things. but overall what really matters is the federal reserve right now. they literally are dictating the stock market policy. you saw what happened on friday when you get aggressive

commentary from the feds i would put more weight on what jay powell said than what happens in the elections. >> absolutely. bob, thank you so much. >> okay. >> coming up, we're speaking with the ceo of hotel group for our state of jobs in america series ahead of friday's big labor rorpt. so how is the leisure and hospitality industry finding workers. we'll k atp xt asth une only at vanguard, you're more than just an investor—you're an owner. we got this, babe. that means that your dreams are ours too. and our financial planning tools can help you reach them. that's the value of ownership. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

at xfinity, we're constantly innovating. and we're working 24/7 to connect you matching your job description. to more of what you love. we're bringing you the nation's largest gig speed network. available to more homes than anyone else. and with xfi complete, get 10x faster upload speeds. tech upgrades for your changing wifi needs. and advanced security at home and on the go to block millions of threats. only from us... xfinity.

welcome back to "the exchange." the dow and the s&p had managed to briefly turn positive they're a little bit lower now we'll call it flat the nasdaq composite still down about .3%. it is a different story for airline stocks majors will be low ear head of the holiday weekend. and jet blue turned positive is a cording to a bank of america, bookings took a sizable step back last week falling 24% from 2019 levels those analysts warning that if the softness is not reversed in the next one to two weeks that puts third quarter out looks at risk phil lebeau joins me with whether labor day travel demand will be the boost that airlines need i'm particularly invested in

this question. i have to travel back to san francisco at the end of the week. >> i think you're going to be okay in terms of how the airlines handle thing. provided the weather cooperates. look, august has been an interesting month. until a couple of weeks ago, they were doing better than expected in terms of cancellations and delays then we had a really rough weekend, not this last weekend but the weekend before and as a result when you take a look at the august numbers, cancellations a little worse than what we saw in july as far as delays almost one out of every four flights delayed that is what it has been expected rate over the last couple of months the amount of flights, it is decreased slightly since july, the airlines plan to bring it back even more in september. now these are the redictions in capacity compared to their initial plans at the beginning of the year. look at american, united and delta. they've all brought down their september capacity plans again compared to what they were planning on doing earlier this year as you take a look at airline stocks, keep in mind that later

this week the department of transportation will be launching the airline customer service web portal and essentially this is going to be one-stop shopping where if you are delayed or canceled, you could say what are my rights with this particular airline and how does this airline's policy compare compare with another airline so you take a look at the airline stocks, keep in mind that that will be going live later this week. curious how much reaction it will get from people who are flying especially if it's a messy weekend. >> you're right. >> finally, deirdre, jet fuel becomes the issue that people are paying attention to as they head into the end of the third quarter. does it moderate even more and that's what the analysts will be watching as we head into september. >> even looking further out, phil, when you look at how they had to add or take away capacity, does what happened over the labor day weekend sort of determine that at all or would it be totally separate >> no. it's more about forward bookings

and they've locked in plans. they can adjust them, but as of now they plan to ramp up capacity and one other note on that introduction about the bank of america note, people will sit there and say oh, my gosh, bookings are down 23% and that's in comparison to one week, the same week back in 2019 and there was a hurricane approaching the eastern part of the united states back then which may have made it a lumpy comparison you really need to look at bookings over three to four weeks before you say there is a definite trend in terms of more bookings or less bookings. >> okay. bookings and a little bit lumpy, but what does that mean for prices, phil can you get more of a discount or are airlines not there yet? they're bringing down the fares a little bit and not as much as people would like to see them and they're not as high as they were earlier this summer and they typically tend to drop a bit as you head into september and early october and they start to go back up as you head into the holiday season

phil lebeau. thank you very much. >> i hope you're right this holiday weekend so i don't get stuck at the airport >> we'll get a check of the state of hospitality jobs with the ceo of dream hotel groups and take a look at some of the laggards in august you have zoom, match, portne down 20% for the month more scutipelave names "the exchange" is back after this 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. 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. responsive collaboration tools give your team effortless connectivity to stay focused wherever they work.

fetch. lenovo makes seamless productivity possible. cdw makes it powerful. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

and it's easier than ever to get your projects done right. with angi, you can connect with and see ratings and reviews. and when you book and pay throug you're covered by our happiness check out angi.com today. angi... and done.

welcome back to "the exchange." all this week we are taking a look at the employment picture and different areas of the economy ahead of the jobs report which is crucial ahead of next month's meeting and we are focusing on hospitality and leisure according to the bureau of labor statistics and there are currently 1.6 million jobs available in the industry. joining me now is jay stein of dream hotel group. what have you seen over the last few weeks or months? has anything changed in that

labor picture? >> hi, deirdre you know, it has been difficult for quite some time now. so when you say has it changed i mean, it looks like things are getting better is that what you meant >> yes have they been getting noticeably better or worse than the picture? >> no. it's been about the same for us, particularly on the food and beverage side on the labor part of the picture and since covid it obviously started then, and people not working, people getting enhanced payments and it's been difficult and people coming back to this industry, there's no doubt it's been the most difficult i've seen in over 35 years >> jay, how are you retaining workers? having to raise wages? >> yes we are having to increase wages. we've had new incentives to signing bonuses to find people and we've had to change the way

we do business a little bit and a lot of operations that used to be open seven days a week, we moved them back and unfortunately, we're opening them on the busier days and closing, perhaps on a sunday, monday, tuesday night which, overall, the flow throughs have remained pretty well because we have some softer days of the week we have had to amend the way we are doing our work >> jay, i usually anchor a tech show, so i'm curious if there is any technology that you're using to either automate or make up for the smaller workforce like an automated check-in or are you looking for those things >> yeah. we were doing automated check-in and decided to look into it prior to this. it's something that guests like, so, yes, we are continuing down that road and moved into those areas and we have moved into robots in some of our properties

which sounds funny and it helps and it's not a huge impact on the labor side, but it helps a bit and this is a very labor-intensive industry and we can make improvement, but we'll never get away from it in large percentages particularly large segment which is where our hotels are. >> right it is such a people business and it is a largely 24/7 business. so when you get workers that maybe don't want to work in hospitality, anymore, are dthey telling you where you do want to go >> a lot of my jobs you can't do from home, and maybe they are looking for jobs that they're able to work remotely. our industry has been around for 5,000 years with hotels and restaurants. we're not going away it will balance itself out, and it may take a little longer and inflation will help in the sense that our rates will be going up and we'll figure out how to be

profitable by paying people more than we used to pay them in the past, so we'll get there >> jay, this summer has been the return of travel how are you finding your pricing power? you said that rates have been going up >> yeah. certainly in the leisure markets, rates have been going up since covid started and now since some of the urban markets and new york has bounced back pretty nicely and we'll be able to raise rates pretty much ahead of the 2019 states already on rates and a lot of our markets i think over the next two years we'll see a lot of growth in that area. >> jay, we thank you for being with us. jay stein, good luck to you. >> appreciate it >> we will have a look at the state of jobs with the ceo of tyler technologies that does it for "the exchange." "power lunch" starts right now ♪ ♪ welcome to "power lunch ". i'm contessa brewer. here's what's ahead.

stay fully invested and that's the advice of a strategist who is finding opportunity in the turbulence and has under the radar plays for the long term. plus r chip stocks struggling to come back from last week's beating and the broader market and what's to come, but first to tyler with a check of the markets. >> contessa, elcome, and welcome, everybody it was a big one the dow down about 300 at the low, up 40 at the high so it's that kind of yo-yo day it is off a tiny amount as you see right there and nasdaq is off about 46 apple, microsoft, amazon also attempting a bit of of a midday comeback and apple had been up earlier in the session and a bright spot today one of my favorite words to pronounce pinduoduo which say theed a recovery in consumer confidence an