technologies, so the administration has said we need to build these out to secure our energy future as we shirt to renewables that require many more raw materials than fossil fuels. >> nthat was a great rundown that does it for "the exchange," "power lunch" starts right now ♪ and welcome to "power lunch. i'm contessa brewer in for kelly evans, here's what's ahead crude confusion, oil prices drop as more rate hikes loom. there are also concerns about unrest in iraq we'll make sense of the move as oil approaches 90 bucks a barrel. plus, apple, microsoft, and alphabet all down more than 5% over the past week is tech too ris i do buy on this pull back? our market pro tells us how he's positioned. first to tyler and a check on the markets. >> thank you very much and welcome to you and everyone. stocks pulling back now for a

third straight day now off the lows of the session, however, the dow industrials now down about 1% or 341 points. the s&p 500 meantime is back below the 4,000 mark i look over there down 1.25% energy sector, worst performing of the day dragged lower by the fall in oil prices that contessa just mentioned. apa, halliburton, valero, some of the big laggards there. shares of alcoa down about 9% after the company said it was going to curb production at a facility in norway to offset power costs. well, the s&p 500 has shed more than 3% since friday's rout and that cuts its rebound to about 9% overall our next guest says what we are witnessing is new leadership emerging and investors need to stop clinging to yesterday's winner let's bring in dan suzuki, deputy chief investment officer at richard bernstein advisers. welcome, good to have you with us it seems to me that what has hit

the market over the past week certainly since powell's speech on friday and probably in anticipation of that is the following. the realization that a recession is coming. it is in the cards that's why oil is down $5 a barrel today that's why stocks are down and falling today as well. agree or disagree? >> well, tyler, i actually think it's probably more a story of the fed if you're talking about the weakness over the last week or so. growth itself. if you look at what's been rallying, it doesn't make a lot of sense that interest rates would be rising significantly if people were starting to price in a recession. if you look at fed expectations into next year, you know, people are getting more aggressive on their expectations, but you know, certainly the fed's not going to be getting more aggressive if we actually are, you know, going into a deep recession. so i really think this has been more about a repricing of the fed, you know, than pricing a recession. i think that story may still yet

be yet to come i just don't think it's in markets just yet. >> i think in a funny way, dan, we're talking about the same thing here in other words, the idea is that the fed as it aggressively tries to wrestle inflation to the ground, the understanding in the market is that the fed is going to raise interest rates, and that hurts equities, but that the likely result, the likely result of the kind of aggressive fed tightening that we are seeing right now is a recession, not that we're necessarily going into one imminently, but that one is going to be very, very hard to avoid. as a consequence of what the fed's doing. >> i think that's the tug of war that's going on in markets, tyler, is that, you know, people just can't figure out whether they should be focussed more on growth or the fed. week to week, i think that that story is changing. the reality is neither of those stories are good for markets i think it's in some ways it's almost a lose-lose for markets unless you see a drastic shift

in either of those stories from my vantage point, you know, the only two certainties for the rest of the year are that growth is going to continue to slow, and we think we will be in a profits recession, you know, by early next year at the latest. and we think the fed's going to continue to tighten. that combination is probably the worst combination historically for markets. either way you cut it, whether it is the growth or it's fed or it's both, that's not a great backdrop for market. >> a profits recession is never a good backdrop for the markets. exactly. >> so dan, the real question is then how would you guide investors to look at profits and liquidity and the things that you think are important in the near term, how do you gauge balancing that against the prospect of how other companies have done in the past? >> yeah, i mean, first of all i think that the big debate happening within markets right now is the bear market over or is it not, and i think if you look historically, you know, it's very difficult to make the argument that it's over unless

you're going to see some major shift in either of that profit story or the liquidity story, neither of which we see in the cards just yet so i think to see a stustainable rally, you need to see one of those two turn in terms of how you position for that environment going forward, clearly i think it's too early, you know, to jump into the markets with both feet in fact, if you look historically at the history of bear markets, you know, the history is very clear that it's actually better to be late than it is to be early when jumping back to the markets. not only do you have better probability of success and better returns and lower downside risk, but more importantly, you have the benefit of more time and more time to, you know, analyze the data unless you're looking at the data -- >> well, then how late is too late >> so the announcements i'm referring to, we basically looked at six months early versus six months lace te you're generally right 70% of the times historically

the only times it didn't work out is again in those scenarios where policymakers had pivoted and panicked because things were collapsing clearly that's not the case. you're not seeing that panic from policymakers, and so it's hard to argue that this is one of those times where you should be -- >> three sectors you would favor right now, three sectors you would shun, avoid? >> well, tyler, i think wright now what you want to do is you want to focus on the areas where they're seeing their relative earnings show the best fundamental trends, and in a slowing environment just not going down as much is sometimes a big win. so i think right now, you know, focusing on those defensive sectors, the traditional ones like utilities, staples, and health care, they're not going to be -- in the slowdown of the economy as the other sectors and i think they're best positioned. >> and so the ones to avoid would be high growth, emerging tech i suppose, and give me a third? >> well, tyler, i think, you know, i think that the bubble has still not defrelated so

clearly i'm more worried about the areas most exposed to the bubble, which are technology, consumer discretionary, communication services >> got it. >> but just cyclicals in general don't do well in a cyclical slowdown. >> dan, great conversation thank you so much. we appreciate you. >> thanks, tyler. >> dan suzuki. it's not just equities selling off today, the energy market also taking a hit, especially crude where investors are grappling with competing headlines here on one hand, prospects over a revived iran nuclear deal and a hawkish fed are driving prices lower with crude selling off sharply on the session but geopolitical tensions, turmoil in iraq, and improving consumer sentiment may signal further upside for energy prices, so how should investors make sense of these dueling headlines? joining me now is kevin book, managing director at clear view energy partners. kevin, which of these headlines are you giving more weight right now? what's driving your thesis >> contessa, good afternoon to

the downside, iran, i think it's the proximity to a deal that is on the horizon when you look at what that means, there's two components. there's the return of above board sales on an ongoing basis. think of those as flowing barrels. the second part of it is if the reports are correct and the deal looks like this in the end, 50 million barrels of stock, that would come at the time when strategic stockpile drawdowns in the u.s. are basically coming to a close, if the deal were signed say this week. you'd have more continuity in supply you've already got 4q with supply looking to be ahead of demand, and that's even without the iran deal, and you see pressure to the downside >> and then we have the geopolitical tensions which i mentioned you've got some issues coming in with russia. you have issues coming in -- new issues in iraq and the turmoil that's happening there how do you weigh in outside of iran some of the other geopolitical risks >> well, it turns out that

there's another side to the story and the russia side is actually right now, there's still plenty of russian barrels flowing into market. on december 5th, that's due to change with european union sanctions. one question is whether there will be a price cap in place to allow continued delivery to markets, ostensibly at a lower price than vladimir putin might want, but even if that cap is possibly coming, the prospect that it might not could create a bid. what about the buyers of russian crude who four to six weeks back from december 5th have to start asking where am i getting my barrels if this doesn't happen where am i getting the supply. there's definitely upside catalyst there's a possibility the iran deal doesn't have, you have decay in the region, greater risk to supply and transport routes as we've seen in past periods when iran has been pushing back against the west. >> where does opec fit in all of this these days? i mean, they are saying they're

going to think about cutting production >> yeah, well, my colleague pointed out just last week in a note here at clear view that opec basically got back round trip if you look at opec's historical cuts, they cut when petroleum inventories are ahead of the five-year rolling average. right now we're still a couple hundred million barrels behind give me a big recession, a return of iranian crude, you have a catalyst for a cut for sure. >> interesting. >> here we are heading into what is typically the height of hurricane season, we've had a very calm atlantic hurricane season so far. but i just read a note today where the atmospheric specialists are looking at what's happening in the atlantic and thinking, okay, well, now we may start to see some action pickup how does the potential for a hurricane in the gulf coast or in the caribbean affect what you're looking for toward the end of the year. >> well, a couple of dynamics at once one is supply to the world f. we end up with a hurricane shutting

down delivery to the east coast, it's possible that stockpiles are so lean right now the department of energy, the president might look to limit or restrict refined products exports, creating a bid for products in europe at a time when a lot of diesel is going into power generation and backup genera generation that would be a staggering result second side of that, of course, is when hurricanes shut down the refined product production, they also shut down the demand for crude. so some divergence between the wti barrel and the demand going into refineries that aren't operating and the brent barrel would happen at the same time. >> and how does, as we head into winter again and this increased demand for natural gas, how does that supply and demand then affect crude >> yeah, it may seem similar ball - simplistic when you're not able to get gas to burn, you burn something else that means demand push coming

underneath coal and also petr petroleum. in general if you think about russia having supplied about 5.5% of global consumption with its coal, oil, and natural gas exports for the last ten years, we're now missing about 20% of that or up to about 20% of that based on our numbers that's a big shortfall 1% of missing supply, and it's not even winter yet. >> kevin book of clear view energy partners, kevin, it's great to see you, thank you. >> thanks for having me on okay, coming up, we will break down the restaurant business as the industry battles inflag up next in cook book series, a look at the beverage players and which offer the best returns for investors. plus, twitter, peloton, and bed, bath and beyond, darlings or troublemakers controversial stocks but there's one our traderays syou should buy. more "power lunch" is straight ahead. ♪ ♪

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only from xfinity. unbeatable internet made to do anything so you can do anything. welcome back, time for another chapter of our "power lunch" cookbook series with e focus this week on some overlooked stocks and sectors in the restaurant space today we take a look at beverage names from coca-cola to pepsi, constellation brands, and here to help us trade them, nick modi, managing director at rbc capital and has some best position names for us today. welcome, good to have you with us there are three stocks that we're going to get to in just a moment, and i wonder whether as you look at these e pupurveyorsf

beverages and food and things like this, the key at this time is whether they have pricing power, can they pass along price increases to their purchasers? >> yeah, so far what we've seen is absolutely they've had a lot of pricing power we really think about it and go back in history, take carbonated software, soda, for example, there was always a lot of doubt that that industry could take any pricing and what we, i think, have learned over last several years is these categories aren't very price sensitive. the issue is cross elasticity. it's when the competitors don't take pricing and you take pricing, it causes a lot of mayhem, and so far we've seen the industry act very rational and everyone has been taking pricing at the same time even with all the increases today, you can get a can of coke for, you know, $0.40 to $0.50 per can. which is pretty good value when you think about like a starbucks coffee or dunkin' donuts coffee

as an example. >> you have a lot of beverage companies on here. also in your stocks is clorox company, let's suggest people do not drink the clorox, that has been suggested before as you know anyhow, one of the ones you like and it is hard in sort of any environment to go wrong with alcohol, constellation brands, why? >> yeah, so, you know, look, there's a lot of debate obviously of, you know, what's going to go on with the economy, how deep a recession will be if one does happen, and the beauty about constellation is that they're just gaining distribution because they have so much marketplace momentum right now. so when you think about there are opportunities in stores like grocery store, walmart, et cetera, they're gaining distribution, but they're also gaining distribution in bars in restaurants where they have very -- where they're less exposed right now relative to their history. so regardless of what happens in the category, this company is still going to be able to grow and outgrow and gain share because of this distribution muscle. >> if you're concerned that the rising prices are going to pinch what people are willing to spend

on dining out, if you're worried about restaurants, are there other companies other than constellation you think are well-positioned to weather that? >> yeah, absolutely. so you think -- the beauty about beverages is that you will consume them regardless of where you are, right just see what happened during covid. people didn't go out, but they were drinking plenty at home >> maybe more than usual >> certainly in my household, no question so again, when you really think about it, which of the companies that have this distribution opportunity that can help deliver outsized growth in an environment where people are still consuming beverages, so we think about duck horn portfolio companies, right take our napa, they sell duckhorn decoy wine. they're only distributed in 20% of the retail locations that they should be distributed in, so they still have a lot of opportunity for distribution outside of bars and restaurants. so that's another opportunity. and if you're really worried about people going out and

about, here keurig dr. pepper, u basically can make and brew your coffee at home people may not want to spend four or five bucks for a cup of coffee outside the home. >> the last one you mentioned goes by the ticker cymbal napa, i'm not familiar with it, duck horn portfolio, what do they provide or do? i'm so sorry not to know >> yeah, yeah, no worries tyler. they sell the duck horn and decoy -- >> oh, labels, the wine labels, okay >> yeah. >> did you know that >> yeah. well, i mean, i'm not saying that i know a ton about wine or that i drank more than i did before the pandemic, however, nick, i appreciate you bringing duck horn to my friend's attention too because those of us who do love wine with one glass at dinner, just one glass. >> just one glass with dinner. >> thank you, nick >> nick, good to see you my friend. >> good to see you too. >> cheers. we want to check in with

another restaurateur, president of maria's italian kitchen, madeline alfano says they've experienced major labor challenges, rising costs and had their business shift largely to takeout. >> pre-pandemic we were at 60% dine-in and 40% takeout. we've totally flipped now. we're 40% dine-in, and 60% takeout. customers have changed the way they buy food. as far as labor, we have a tremendous labor shortshortage, we're 500,000 shy in our industry at maria's we've integrated more technology and also cut our hours to mitigate the labor costs and shortages. as far as inflation, prices have gone through the roof, chicken 40%, butter 59% higher oil 76% higher and our flour at one point was 100% higher. >> those commodity prices, those

food prices will change. they will fluctuate in the future, but what won't change, did you hear her say that now they've invested in more automation if you can't get humans to do the jobs that need to be done and you invest in machinery to do it, those jobs will not -- that won't come back. >> that's not going away i was speaking to a person who owns a bakery in my town, and the difference in the amount that she is having to pay for butter, for flour is staggering. staggering staggering, and she can't find workers. >> right slim margins there. still to come, elon musk doubling down on his push to scrap his deal with twitter citing security flaws alleged by the company's whistle-blower in today's working lunch, we'll speak to the head of a company that focuses on preventing these very types osef curity flaws we'll be right back. bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles.

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welcome back to "power lunch. i'm dominic chu, we want to call your attention to what's happening with the casino stocks right now, many of whom are the biggest laggards on the day in many industries. exposure to macao, las vegas sands and mgm as well. those declines come as china

implements several fresh lockdown measures as part of its ongoing zero covid strategy. macao doesn't appear to be impacted for the time being, but the region still has seen several lockdowns throughout the pandemic that have effectively shuttered the casino business over there, especially for foreign tourists and contessa, that may be the reason why you're seeing some outsized losses, especially in names like melco and that's something to keep an eye on. >> you know,the issue with macao is there is simply no clarity. there is no certainty about when china emerges from these strict covid lockdowns. that pursuit of zero covid infection policy is just crimping these casinos like you can't believe. and what has happened is, dom, tyler, you have companies that depended for las vegas sands, 65% of their profits came from macao prepandemic. for wynn it was 75%. they're now turning to rely on for sands, singapore, for wynn

it's really las vegas, and the boom there to support the overall operations las vegas supporting macao it's totally topsyturvy. >> it's a world post-pandemic where the whole world is upside down, but it also shows you the stark contrast in the way here as america have treated the covid lockdowns that we've had and the emergence from them versus a very strict hard line approach happening in china. you could argue and i would say that las vegas looks a heck of a lot better right now than macao does, so maybe there's an interesting kind of tilt or political commentary on just what kind of system works more effectively, especially when it comes to things like casino gambling. >> it's one reason why mgm resorts is coming out of this a little bit better because they have a much more diversified portfolio and much more reliant on domestic operations there thanks for bringing us casinos that's fun. let's get to seema mody for a news update. >> a news update is also fun

president biden has arrived in pennsylvania where he is set to speak shortly about his plan to bolster police forces across the nation and reduce gun crimes this includes hiring and training 100,000 police officers over the next five years three months after the shooting at robb elementary school in uvalde, texas, a promised evaluation of responding school police officers has not yet start and those officers will be allowed to continue working in the district this fall many citizens are expressing their frustration and disbelief and are asking the board to suspend the officers until the evaluation is complete. people who drink tea may be likely to live longer than those who don't. scientists from the u.s. national cancer institute asked about the tea habits of nearly half a million adults in the united kingdom, then followed them for up to 14 years. higher tea intake they found, two or more cups daily was linked to a modest benefit of 9 to 13% lower risk of death from

any cause versus non-tea drinkers so tyler, if you're a caffeine drinker, if you're opting for coffee, you may want to go to tea. >> tea has never floated my boat i have had coffee every day of my life since i was in second grade. truly. >> i was like you until recently, i actually did switch to tea about a year ago. >> i wonder whether it's the tea gives you the good effect or whether the fact that people who drink tea take a pause and they slow down and they have their tea. >> morning routine. >> it's a routine, it's a nice habit. tea or coffee, contessa? >> no, no, she says i'm going to live longer by doing this. >> there we go i'm here all day. >> seema, thank you. ahead on plu"power lunch," three names grabbing headlines, bed, bath and beyond, bbby, peloton delaying its annual report to the s.e.c., and musk sending a second deal

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well, fewer than 90 minutes left in the trading day, and we want to get you caught up on the markets here stocks, bonds, commodities, and how to lead amid a crisis. let's begin with bob pisani with stocks just off the session lows hello, bob >> contessa, it's not been a good day i want to show you the s&p 500, we basically fell apart around 10:00 eastern time got some economic data at the time, the jolts report, the job openings report, a lot stronger than people anticipated. consumer confidence was very strong, so to the extent the fed wants a weaker economy, this is not good news for people who are looking for signs of a somewhat weaker economy then we had talk about from some ecb officials about maybe raising rates more than expected next week. that caused another leg down in the market a little bit of good news, if you think of energy as a proxy for inflation, we're finally getting some moves down in crude oil, which has been moving up

recently 97 earlier this morning. look at this, we're down noticeably, 91 occidental which has been a new high recently down big today some of the more natural gas oriented energy stocks like apa also down rather noticeably today, and the oil service names like halliburton and schlumberger to the downside material stocks, they're proxies for global growth, here not such good news. to the extent they are proxies, very bad day, freeport's been moving down. it's now in a down trend, one of those occasional down trends, it was 34 on friday look here, you see 29, now below $30. mosaic, nucor, cf industries. sub sectors of the materials also to the downside today one sector that's holding up pretty well, though, bank stocks we actually have a number of the big money center banks like bank of america and wells fargo in positive territory jpmorgan, regional banks only down fractionally right now, higher rates helping them and

signs that the consumer is still holding up pretty well also helping them as well contessa back to you. >> bob sans glasses pisani, i like the look, thank you. now to the bond market where the yield on the two-year hit a 14-day high. rick santelli is tracking all of that from the cme, hi, rick. >> yes, you know, post the jackson holesymposium, the short end has been energized to more selling and higher rates. as you look at a three-day of two-year, we flirted above 3.43% friday, yesterday, and today, but today it looks like we may close above it, and why is that so important open the chart up to june 1st. this is why it's so important because we will be nearly at a 15-year high should we trade and close above 3.43%. that was the mid-june high, and if you open the chart all the way back to november 2007, you could see what i'm talking about. ten-year, not exactly the same see this june 1st of our u.s.

ten-year, it's hovering right around 3 311, virtually unchangd on the session its june high was a couple of basis points shy of 3.5% we still have a long way to go when we think about the pound, we have to think that the uk has energy caps, which means it's one of the few economies we know is going to be experiencing even bigger inflation ahead, and to that end, let's look at what's going on with the pound versus the dollar this is from covid, march 2020 it closed at the lowest levels since then, but if you take out that covid, it's really near the lowest levels against green back since 1985 contessa, back to you. >> rick santelli, thank you. oil closing for the day falling more than 5% pippa stevens at the cnbc commodity desk pippa, what are you looking at >> hey, contessa we're seeing heavy declines across the energy complex today with global growth concerns front and center

then on the supply side, we also have unrest in libya and iraq. although it is yet to impact any output anticipation of some disruption had been supporting prices technical factors are playing a role as oil bumped up against its 50-day moving average. let's check on prices. wti at 91, 54 for a loss of 5.7% brent crude right around 99, 25 down 5.6% and we're also seeing declines for natural gas and we have prices down more than 3% with the european bench mark dropping 6%, and this is weighing on the energy sector, which is the worst s&p group, contessa with a loss of 3.6% >> pippa, thank you for bringing us that. this market is one of the most challenging environments for ceos to navigate they're facing economic downturn, rising rates and in some cases a new very vocal shareholder base, so how does a ceo try to give investors clarity when there are so many factors that they have to manage

right now. juggle is more like it with us now is bill george, former ceo of medtronic, professor at harvard university. it's good to see you today what are you learning about how ceos need to navigate such a difficult uncertain environment? >> well, contessa, we've never seen these intersecting crises, you know, whether it's inflation, recession, post-covid trauma that people are experiencing, the great resignation. people not wanting to come into the office, and i think we need a new generation of leaders to step up and do this. too many of the older generations want to get back to the old normal it's not going to happen this is the new normal, leading through crisis the whole time. i wrote my new book, emerging leader of true north we need new leaders that are adaptable, flexible, and they can take care of their people during difficult times and inspire them to step up and deal with these times. >> true north was a great book when you first dropped it some years ago.

i'm sure this new emerging leader edition will be nothing less than that so congratulations on that so i'm hearing you say it is time for the baby boomers to step aside, whether it is in the corporate suite and/or i think most importantly in the political arena. i think we've got too many folks my age, your age hanging on in politics, but let's set that one aside. are you saying we need more n a.

a lot of ceos are doing that right now. >> yes, they are. >> instead of hiring, even though they're holding back right now because they see inev followed by a recession. we don't know when or how long h or how deep, but it's goineader over. >> just to be clear and not to be ageist about it, you can see adaptability from experienced leaders as well, people of all years, but it does take a certain sort of gut and stamina to be willing to change on a

dime without a lot of, you know, getting in behind the corporate board and making sure everybody's on board amc's ceo adam aaron has faced a lot of criticism because he's done some really unusual sometimes irreverent things, tactics. he's had a second offering o ape shares, he's accepted bitcoin. he's had multiple capital raises here what do you think of his style of leadership in this current environment? >> i knew adam, know adam when he was ceo of vail he did a spectacular job he's one of the great marketers of our era he knows how to create loyalty, he did that in the ski business. he's done it in every business he's been in frankly he's spending too much time focusing on trying to hype his shareholder base in his stock, and frankly, his stock's downed 2/3, 70% since he took over in the end of '15 he needs tw

you're going to market theaters, because today people want to sit at home. i think adam is spending too much time on his shareholder base and not enough time on his customer base. >> we're going to get to another controversial ceo right now, bill implicit in the title "true north" is that you as a leader or as a ceo have a load star, a guiding star, a guiding principle. who among the current ranks of ceos has that guiding principle? who tdoes not, and where does elon musk fit? >> mary barra clearly has it at general motors she took a bankrupt company and is turning it around, and she put mark ers out there of saying we're going to be zero congestion, zero pollution, very bold and then said we're going to get rid of all of our fossil fuel cars, oil and gas cars. another one is is a cha knew

bella, a great company ken frazier did that at merck. there's some great leaders out there. >> does musk have that or not? >> elon musk is the greatest inventor of our time earlier generations steve jobs was. he's brilliant, and it's amazin what he's done with tesla and spacex and other things. frankly i think he's getting caught in the celebrity trap right now, a little caught one his own amount of money he's worth and all that game with twitter. i wish he'd go back to inventing things he's a great inventor, and i think that's where he's really good and shouldn't worry so much about being a celebrity. >> the book is called "true north: emerging leader edition" bill north, great to talk to you. we could have gone what, another half hour or so. >> i didn't even get to ask the reques

teieon fortt will bring us his inrvw with the ceo of cloud security firm vanta. we'll be right back. >> announcer: the bond report is brought to you by pimco, a global leader in active fixed income 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. 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.

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twitter is in the hot seat facing allegations of outdated software that put it at risk for data breaches. this week jon fortt brings us up close with the ceo of one of today's hottest security tartups which is tackling this very problem. >> christian noo capioppo is cofounder and ceo of vanta kpae the company exposes flaws so they kcould be fixed she got her start in business in ohio when she started the art of buying and selling beanie babies on ebay. >> those websites and businesses kind of foreshadowed something like shopify or the rise of things like that at the time it was very early ebay, and so a couple of years later, i tried to flip some of my old beanie babies on ebay this was like money orders

right, like biking to kroger, just like the grocery store to go get money orders and basically like sliding a bunch of dimes and quarters across the counter and the clerk was like what's going on here here's your money order, little girl. >> money orders. she ended up going to stanford working in venture capital, learning to code then trying a few startup efforts that failed because they weren't solving big enough problems it's after she took a product manager job at drop box that she found a big one, a product she was launching got tripped up in security compliance issues it turns out it's way too hard to make sure a given piece of software is practicing good security hygiene keeping the doors and windows locked to borrow a metaphor. >> the other software systems are so hard to secure and why you see these like big established super confident companies getting breached to use your analogy, it's like new doors just pop up all the time, right? when you think about a company it's cloud infrastructure, its constantly changing and moving your database has new queues,

new services, all of that often happening programmatically so again, back to the analogy, it's hard because there's more doors and windows every day, and then the locks on those doors and windows change, and so trying to do this without an automated monitoring system is just near impossible >> and of course security threats don't take a break in a shifting economy, which we're likely to hear more about when crowd strike reports this afternoon, and meanwhile, cacioppo's company vanta is a standout in a few ways, not only as a rare software as a service unicorn that's founded and run by a woman, women make up two-thirds of the management team, guys. >> that's really incredible. you know, it's interesting to see a company try and tackle this issue of popping up doors it's one of the reasons why you're seeing triple digit premium kroezs, percentage increases in cybersecurity and insurance because the insurers who provide it have to constantly make sure that

they're covered. you know, and there's such a big increasing number of incursions. so how did she get the idea that she could think big enough to solve these big complicated, evolving problems? >> well, she's always been curious, and she did a lot of traveling, but then she was working at dropbox, and was working on the product paper and was looking to expand the number of people who had access to it, but ran into trouble with the security of the product for drop box's existing paying customers, and so that was sort of an a ha moment right now there are so many companies that need security compliance work, whether they're going through an audit for a standard reason because they're getting ready to do a deal or even if they're getting ready to be acquired, bringing it back to twitter. and then just to stay safe in general, there are so many ways companies can get tripped up when they have an issue like this so artificial intelligence and smart software coming to bear to

try so solve some of these problems, they're increasingly as she said more doors and windows opening. that was my metaphor. >> fascinating jon, thank you. >> thanks, skjon, good to see yu still to come, not worth the ris skwetake a look at some of the controversial trades in today's three stock lunch. today's three stock lunch. we'll be right back. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪ this is smarter cleaning. this is ge profile. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you.

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today's three stock lunch focuses on three controversial stocks first twitter. elon musk filed another notice to terminate his acquisition of the company citing recent whistleblower claims peloton is delaying the filing of its 10-k to sort out accounting issues related to its restructuring. and bed, bath and beyond is scheduled to release its turn-around strategy tomorrow as it struggles with slowing sales. with us, mary ann muntain. mary ann, which of these three is a buy for you >> for ugs us twitter is the most interesting since elon musk agreed to buy the company and then backed out. that $54.20 offer is still on the table. it's now in the hands of the court with very capable lawyers

on the part of twitter i think elon is getting pretty nervous here because those same lawyers that are representing twitter represented him in the past, according to my sources. so in the meantime, twitter has been undergoing its own restructuring program and we believe it's likely to emerge with better growth and cash flow dynamics post the legal decision so with or without musk, we believe that the general negativity on the stock is excessive. we're contrarians and would be buyers. >> so are you then counting on this deal going to completion or that's just not relevant really to your analysis of the stock? >> that's the way i feel it's just not relevant with or without him. with or without a $54 offer, we think the stock could be in the 50s any way just on its own merits. >> i hear bono in the background singing "with or without you." mariann, thank you.

is mega cap chte the trade some say it is we'll put it under the microscope, next

welcome back to "power lunch. mega cap tech hit hard again today leading to questions about whether it can be called a safety trade dom chu is taking a look now. >> what's interesting, contessa, since great financial crisis in the era of ultra low interest rates stocks like apple and microsoft have been viewed as a safe haven trade at times.

when they go down, people go into those because they think they can weather the storm with the nasdaq 100 overall being some of the most vulnerable parts of the market because of that big technology trade, we did see that rally the 24% rally that we saw only to roll over by 9, 10% in just the last couple of weeks here. the reason why we're going to look at that is because apple on the dip had been one of those stocks again where everybody kind of poured into. i'll show you right here, because what this is right here is a 36% gain in apple shares from the june lows that we saw to the recent highs. all of a sudden we've seen a more pronounced drop-off here on the other side of the equation so we don't know whether or not apple is still viewed as that safe haven trade it looks as though right now it's being hit harder with rate concerns microsoft is a similar story if you take a look at microsoft

shares, another move higher off the lows we've seen recently two of the biggest weightings in the s&p 500 and the nasdaq 100 the one place that's a little more disconcerting for some traders within mega cap technology is what's happening with the semiconductor stocks. specifically nvidia, which is the biggest one out there right now by market cap. if you look at the nvidia trade, it's been downtrend for a while into this area of consolidation that you've seen the last four or five months it never really got an upside move going and it's been rolling over for the last couple of weeks as well. so if the semiconductor trade is one of those ones where you say is it more indicative or a leading indicator for the rest of technology, that chip stock trade has not been behaving well, which is the reason why some traders are questioning whether or not there could be a retest of those lows that we saw back in june if semiconductor stocks aren't part of that leadership. >> and why are tech stocks so affected by rising rates >> so the tech stock trade, it's

a valuation concern, right when you have an environment where risk-free rates, the amount of money you can get without any risk whatsoever goes higher, it makes the return you need from tech stocks that much greater. that's the concern for valuations right now. >> thank you. >> that does it for us, thanks, dom. >> thanks for watching "power lunch. >> "closing bell" starts now the late summer pullback gaining steam today as stocks fade throughout the session. the s&p 500 falling below the 4000 mark. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand right now. down more than 1% across the board. the s&p 500 is down about 1.3% at the moment. every sector is lower. energy is the hardest hit. big give-back in oil