that's going to be something we watch this fall. >> one place that you missed out where i'm certain prices are still higher is disneyland i've been canceling my trip because they're too high >> spending is back to 2019 levels according to them. >> to my dismay. seema, thank you so much that does it for "the exchange." "power lunch" starts right now welcome to "power lunch. i'm contessa brewer in for kelly, vans today and here's what's ahead, two power players. bottlenecks are starting to ease and what that means for inflation as we head into september. second, the ceo of redfin. he's warning of a rapidly slowing housing market with deals being canceled at the highest rate since the start of the pandemic are we in a housing recession and how long will that last. first to tyler and a check on the markets. >> contessa, thank you to you.

stocks are just off session lows the dow right now down 146 points and the s&p 500 down 14 and as you see there on the screen in front of you the nasdaq composite down 33 the industrials leading the way lower as you see there materials, the worst-performing sector in the s&p 500 dragged lower by mosaic, the fertilizer company, dupont and sealed air oil now on track for the third straight monthly decline that will be the largest monthly losing streak since 2020 the drop reflects possible concerns about a session as the fed hikes interest rates and the fed's inflation fight may have gotten a bit harder today's adp report showed that annual pay shows 7.6% year over year in august and this is the first month that adp has released wage data as they sort of tweaked and re-did their formula. secondly, the cleveland fed president loretta midwesester si

would be a mistake if inflation peaked too soon. with the fed looming in september how should investors be positioned? let's find out from courtney garcia senior adviser with payne capital management always good to have you with us. >> president mester says inflation is not tamed do you agree or have we seen the worst of it at the very least? >> i think we're continuing to see signs that inflation likely has peaked just most recently we did get the pce numbers out and it is showing that inflation is starting to come down if you look at the total number or the core pce and we're seeing the figures come down as the cpe over the previous months the question is is it coming down enough that the fed will reduce interest rates and that's what the markets are so focused on right now we had a nice month where the fed was fantastic and now that's coming back into focus again and

the every little data point when we get the jobs report out is what the markets will be looking for and every detail indicating what they'll be doing later this month and the rest of the year and we'll see choppy trading between now and then >> i asked a guest yesterday, and i'd like to ask you, if i might, immediately it would seem that the market over the past several days has been reacting to chair powell's speech on friday where he basically promised to keep fighting inflation by raising interest rates. so the market is concerned about rising interest rates, but my feeling is that it goes beyond that what typically follows a rapid, dramatic rise in interest rates. what typically follows is recession, and i wonder if you agree that that is a worry and if that is a sharp decline off of the rebound in stocks likely? >> that's definitely the worry, right? these things go hand in hand because the fear is if inflation

isn't tamed the fed will raise interest rates to the point that it will force us into recession. so if inflation doesn't come down the answer is resescessions where they're able to bring this down without driving the economy there, and i do still think that's possible. i don't think that we're necessarily going to be into a deep recession and i do think it's possible for them to bring down recession as long as labor stays strong andyou want the goldilocks scenario that you need labor down enough that that's one of the things they're looking at to make sure -- >> i'll just top it off before contessa jumps in by saying no two recessions are the same. >> yes >> the resessions during the financial crisis was of different causations and different extremity and the recession, such as it was in 2020 caused by the pandemic, if there is a recession this year or later it will be caused by something else, contessa. >> and the whole point about

jobs is if there are not enough people participating in the workforce to see those job openings increase at this point. how do you -- something has to be done about how many workers we have versus how many workers we need and that's not something that the fed is really in a position to do at this point all that being said and to tyler's point about whether recession is looming because of this aggressive rate hiking that's going on. do you think that there are some companies that are better positioned to pay returns on the investment no matter what comes down the pike? >> yes that's where you want to make sure you're not in your longer duration assets and bank companies have been selling off a lot more than others, and i think you want to make sure that you have a lot of those companies that are paying good cash flow and they'll have demand whether they go into

recession or not and recession or a slower economy we are facing that and you'll have the companies that will benefit >> i have on here that you like ford, ulta beauty and eli lilly. do those three companies have a common theme >> they do all of those things you'll look at is these are things that will likely have demand moving forward regardless of where things are going take ulta, for example the beauty sector is really going to benefit from the fact that people are still getting out and traveling and they're getting back to work and they're going back to school and what i like about them is they have a wide array of products and i can get my mascara from the drugstore and i might have to go to nordstrom for and that brings in a wide array of customers with income sources and it is affecting different income levels more than others. they're getting the whole gamut which makes them more insulated if i like. >> you put on your nice makeup and go roger, ford, bronco

that's the linkage, right, courtney courtney garcia, we appreciate it. >> thanks for having me. >> a big contributor to inflation has been the bottlenecks at the supply chain and bottlenecks and wait times for container ships and congestion have begun to ease and some ports like savannah are still seeing wait times for ships to enter the berth and be unloaded volume hit its peak in july and now traffic is declining let's bring in the executive director for the georgia port authority. it's good to see you today give us a picture of the way that this scenario is changing for you at the port of savannah. >> sure. thank you for having us. we appreciate it i think the market is changing over the last year or two to where we are today we have had 44 vessels that anchor as a peak today we sit at 39 and that number is coming down. we look out what's on the water and what's coming to us over the

next six weeks and it is declining. we see volumes normalizing over the next several weeks to the maximum two months and onscreen we had a note that the retailers have begun ordering earlier for holidays and likely to overcome whatever supply chain issues they've been experiencing over the last couple of years and how does that factor into what you're normally seeing heading into september. >> i think what we would normally have seen in september would be our peak just beginning and a peak season would run through september and october. the truth is we've been running at peak for the last two and a half years, but this particular year that we had peak arrive and the peak means that as holiday goods started arriving in june so i don't think anyone will have issues with getting to the goods they'll buy for the holiday. however, i think the challenge is about the goods going to be bought and the products and slashing their prices and have

gotten inventory buildup and both at the port and the warehousing side of things >> let's talk a little bit about your expansions. i know you've increased capacity in a variety of ways in the number of berths you have and the ability to transfer to rail. tell us a little bit about that and also about whether you can find enough workers to do the work that needs to be done and how much more are you having to pay them than you did, say, two years ago. >> sure, tyler thank you. >> if you look behind me, what you're seeing is the main truck. we handle approximately 16,000 truck moves a day here >> wow this is the single largest container terminal in the western hemisphere so we have right now as i speak, $1 billion in projects expanding our facilities while we do have vessels that anchor, the good news is when the vessel arrives the the dock, turn times for the trucks they're in and out, 30 minutes to 60 minutes max and that's

going very well. as you mentioned, our mason mega rail, and a massive rail facility that you just complete side now open for business and we can service 70% of the nation's population right through this port. so we're investing, and i would say one other thing. on our berthing side and the vessel backup that you see in savannah it's more of a pardon the interruption moment because a year and a half ago, we took one of our berths down to renovate it, revamp it and making it bigger in seven, eight months that is completed and had we had that completed already we wouldn't have any of the vessel wait times and here we are. as far as the workforce goes, i would say like everywhere it's a challenge across the nation right now and it depends on the skilled level that we're looking for at the gpa, the georgia port authority we don't have issues

hiring folks, and we pay a very good salary and the people we have are doing a great job >> i'm just curious how the labor issues on the west coast are playing into the volume you're seeing now and the increased volume you're getting in savannah. >> sure. you have to look back at the last two decades, contessa you talk about going back to the year 2000, every single time there's been a west coast expiry of their contract, their labor contract, we've seen a dramatic uptick in volume and that volume hasn't come back and we're the fastest growing port in the last two years and the east coast is outpacing the west coast the trans pacific cargo from asia, you look back at ten years 71%, 72% market share and the east coast and gulf were in the 20s. today, the west coast is 58% and we're in the 35% to 40% range. so that shift has been going on

for a long time. this year there's another negotiation going on and you're absolutely right cargo is being diverted to the east coast so we're seeing an increase in volume july was up 18% and august will be the all-time record and this was the first time we handled 300,000 con tauners in one month so that's incredible. >> a lot of the operators and the heads of logistics and for various companies bringing us a a of-relief. nah thank you. coming up, our restaurant trade series looks at the payment processors they still expect you to pay, contessa >> when you go to a restaurant post outperforming visa and block this month and is it the best long term bet >> if you find the best dinner date >> i like that shares of bed, bath andbeyond belief

the company cratering those shares, cutting jobs, closing stores and securing new financing and is it enough to fix this struggling business before the break, walmart owned sam's club raising its annual membership fee for the first time in nine years to $50 from 40 more power after the break heat . so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers.

this? this is supersonic wifi from xfinity. so you'll never sit this one out. it's fast. so gaming with your niece has never felt more intense. incoming!

hey, what does this button do? no, don't! welcome to the fastest internet on the largest gig speed network. are you crying uncle ed? no! a little. only from xfinity. unbeatable internet made to do anything so you can do anything. at xfinity, we're constantly innovating. and we're working 24/7 to connect you 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, folks.

time for our "power lunch" cookbook searies where we highlight overlooked stocks in the restaurant business. we know you can't dine out without the check, someone has to and today we'll talk about payment players like visa, toast, square which is owned by the parent company block here to help trade them, dan doluf senior analyst at mizuho and has some of the best positioned for us today. you know, i see on your list that none of them are the big incumbents like mastercard or visa why do you move elsewhere and not have them on your buy list >> great to be on the show here, tyler. we've downgraded visa earlier in the year and our concern is more about the bulk term cash to card, expiration of the cash to card movement and basicsly what it means is two-thirds of the growth to vasisa is threatened

because it's post-covid and there's not that much more to convert. and the cash to card thrive, and there's better place to pay if you want payments in the networks and some of those companies that offer services to restaurants or retail, those are the better places to play. >> when you say cash to card, you just mean the transition from people using cash to using their credit card instead? >> yeah. most people don't know that, but about two-thirds of the revenue growth for visa historically, exactly two-thirds comes from people using more card in year one than they use in year zero and what happened during covid, we are now 70% to 80% penetration of cash to card in the u.s. which means the runway for converting cash to card and generating that 9%, 10% growth over time is more, i would say challenge being put in question and that's a very important point that most people don't appreciate >> take us through some of these

payment companies that you do like and you mention specifically that one of the edges they have is that they provide services to the merchant, i believe, that's what you said services to the merchant as well as convenience to the diner or the player and i'm notably curious that on the list is robinhood that i think as the stock trading platform and not a payments platform. >> correct robinhood is the platform. they're mostly on the stock side and on the trading, et cetera, and the consumers, et cetera, but the ones that are very important in the category that you're talking about and that's a great point. there's toast, we're mutual in toast and the reason we are is because we are worried that the transition from online to in-person to pre-covid level is going to shrink their take rate. so they benefited greatly -- they make more money on online ordering versus in person

because of the credit/debit mix and when the credit/debit mix goes back to pre-covid levels because they make more money on debit which is where online ordering comes from, that's causing the shrinkage. however, they're doing a great job and they're offsetting very well and they have 60-something thousand locations and from all of the names that we cover they're probably doing the best job in restaurants and that's followed by clover which is owneded by pfizer. not that many people know pfizer clover is a massive success in restaurants and retail and that's sort of a branded point of sale and of course, you mentioned square which is a very important merchant inquiry although i heard restaurants are not doing as well. >> also, i want to ask you about paypal here because you have a buy rating on it and $118 price target and it's sitting at 92.66 or something like that

is it the perception that it's losing market share in the payment space? >> that's a great question that's the difference between the stock price today and something more of the price target we've done some work that proved historically -- actually in 2021 they outgrew econ by a thousand basis points they outgrew them. despite the fact that they had more exposure to diskregszary goods and now services are doing better and they still grew in-line with econ and the fact is that they're growing inline to outperform econ, but once perceptions die hard and the issue they have is 100% perception and too high of a cost basis with elliott management coming in and cutting costs and i don't understand they need 30,000 people they probably do the same with fewer people that's a great, great, great

value/growth name that i think is going to go way higher than where it is today. >> i don't want to put words in your mouth, but i kind of do it sounds to me like you like paypal a lot, but that fiserv, the owner of clover is the sleeper that you really like >> fiserv is the hidden gem. it's the diamond in the rough. i don't have any other -- >> i'm going to leave it right there. >> that's a button that's a mike drop moment, dan dolev, thank you, man! >> thank you >> we have heard from multiple restaurant owners this week about the impact of wage inflation. junior cheesecake owner allen rosen tells us he's fully staffed, but those rising wages are taking a serious toll. >> inflation has greatly impacted our bottom line the cost of goods across the board have always and dramatically over the past two years have changed additionally, as we all know, the labor shortage led to a

higher hourly wage, and higher salaried workers, but we are fully employed at junior's currently. back to the issue of whether wage inflation is something that can be tackled by the aggressive move that the fed is taking or is this an issue that, you know, i was talking to a very highly placed source today who said the problem is in order to add more people to the workforce in the united states of america, we need more immigration. you cannot create new humans who are ready to go just like that what you need to do is figure out a responsible immigration approximat policy to accompany what they need the knock-on effect of higher interest rates is it slows the economy. a slower economy with less turnover means that you probably don't sell as much and then you probably don't need as many people so the wages come down. that would be the transmission mechanism, i would guess

>> coming up. >> bed bath & beyond saving and the controversial stock cannot seem to escape the harsh glare of the spotlight, laying off 20% of its staff and closing stores. could this get worse or is this the start of something better? plus, planting a seed for hydrogen-powered cars. bosh makes a major investment in hydrogen fuel cells still ahead. 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. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. bubbles bubbles so many bubbles! as an expedia member you earn points on your travels, and that's on top of your airline miles. so you can go and see... or taste or do absolutely nothing with all those bubbles. without ever wondering if you're getting the most out of your trip. because you are.

>> welcome back to "power lunch. bed bath & beyond shares plunged after issuing strategic business update the company is taking aggressive action and investors seem to want more. courtney reagan has that breakdown for us what do they want, courtney? >> oh, contessa. it's hard to say there are a lot of details in this and frankly, bed bath & beyond stock follows fundamentals with the reddit traders and today's response does seem correlated with the company. shares fell 19%. as an sec filing revealed a 12 million share-from posed offering and then the stock fell further on the rest of the details when it came out the retailer has secured $500 million in new financing including a $1 billion revolving

line of credit and $375 million first and last out facility. it's welcome news because the company had just $108 million in cash and 1.4 billion in long-term debt obligations at the end of its first quarter and it had a 20% drop in same-store sales and second quarter comp sales are down 6% and 325 million and free cash flow was also used in the carter. the retailer was closing 150 more stores and cutting 20% of corporate and supply chain jobs. it's part of a $250 million cost-cutting plant and it's lowering its planned capital expenditures as well and while previous activist ryan cohen wanted bed bath & beyond by its better performing bye-bye baby, the company says that's not happening. much of mark triton's labor is getting scrapped and they're killing three of nine newly created private level brands and

they're lowering the rest of the private label merchandise by 20% to replace it with a national brand goods so bringing back of what tritton got rid of. still no permanent ceo it named one for bed bath and beyond and one for bye bye baby as chief officer roles. so tyler, there's a lot of fixing still to be done and they threw a lot at us. >> a lot of moving costs and cost-cuts to come. thank you very much, courtney. let's go to seema mody for a cnbc news update. >> good afternoon. a judge has rejected a deal that would have meant no prison time for the driver of a limousine crash that killed 20 people in upstate new york the judge says the plea agreement was fundamentally flawed the 2018 crash was blamed on faulty brakes and it was the deadliest u.s. transportation accident in a decade. an excessive heat alert for san francisco and the entire bay area has been extended

the region is expected to get some of its highest temperatures of the year and possibly upper 90s along the coast and well into triple digits inland. the worst of the heat is expected from saturday morning through tuesday evening. near houston an historic battle ship has been moved for a much-needed overhaul the "the uss texas" was a museum and it is in a $35 million restoration. >> seema, thank you very much. we have news out of washington and eamon javers has it. he is suing michael saylor for not paying texas and he's lived in the district of columbia and has never paid d.c. income taxes and he's suing microstrategy which is located just across the river in suburban virginia for, quote, conspireing to help him evade

taxes and he legally owes on hundreds of millions he's earned while living in d.c. the suit alleges that saylorly illegally avoided millions of dollars in d.c. by pretending to be a resident of other jurisdictions. he lives in a 7,000 square foot penthouse and has docked two of his luxury yachts in the district for long periods of time the complaint includes detailed allegations that saylor was physicall physically present in d.c. for most of the year despite being a florida resident including the corporate jet and location tagged social media posts. the whistle-blower's complaint said saylor openly bragged to friends and encouraged others to follow his example the a.g. alleges that saylor avoided paying $25 million in income taxes and he alleges that microstrategy as a company actively conspired with saylor

to enable the fraud including by filing inaccurate w-s with the address of his proper ney florida rather than his home in d.c. we reached out to microstrategy for its comments on this allegation and we'll bring them to you as soon as we have it >> thank you very much, eamon javers for that news break ahead on "power lunch. homesick, more firms warning of a recession or at least a serious decline in housing and the ceo of redfin will weigh in. >> finding diamonds in the rough rfmiwe'll trade in the best peorng names or the worst performing sectors in today's three-stock lunch. so you can enjoy more of...this. this is the planning effect.

less than 90 minutes to the closing bell and we'll get you caught up on the markets on stocks, bonds, commodities and a housing recession. let's begin with bob pisani at the new york stock exchange where stocks now, bob, are near session lows >> yes we're essentially at the session lows down 23 isn't a big push down for the s&p, but there's no bid at all in the market there has not been for frankly, almost two weeks and not just last friday, but for several weeks now weave've been in a downtrend. energy stocks are on the upside

most of the day even though oil is below 90. oil is down, but it is not down enough to get everybody excited about oil as a proxy for inflation it's moving down dramatically and not down enough to get people excited. some growth proxies are down and you can watch a stock like freeport mcmorran and that's been moving down in the last few days and that's gotten people more encouraged and it's a proxy for growth and a little bit lower growth prospects another profit for growth and semiconductors have been generally weak in the markets to a certain extent that is good news and if you want to see some kind of signs of weakness and growth at the same time today, big cap tech, and other sectors of big cap tech have been holding up pretty well. alphabet, microsoft, it was positive earlier and amazon weaker down about 1% so where are we? it's maybe the end of august and there are macro concerns that

are out there. look at the s&p 500. we've been in the downtrend for a few weeks and there's been up day where we were up 60 points in the s&p and we're straight down in the last couple of weeks and we have a buyer's strike going on and what we need is better evidence of a jobs report on friday. believe it or not, i hate to say this, but the bulls really want a weaker report. we're looking for 300,000 and contessa, i think people would be happy if they were 200,000 and the market may rally on that and that's topsy-turvy logic and the market wants some sign that the fed is working >> bob pisani, thank you for that let's go to the bond market. a bit of pullback. just yesterday i tossed to you here, rick, saying hey, we saw a 14-year high boy, we're seeing a lot of movement here. yes, we continue to creep up and bob's got a great point and the

central bank strategy of choice globally has put investors in a mode where they're hoping for negative economic outcomes you can't make this stuff up and look at the two-year note yield. for how much it's been flying up it continues and this could be the fourth session in a row of higher yields and means it all started on friday when jackson hole symposium and the speaker our chairman said no, no, no believe me, we're going to stay solid on inflation fighting and if you look at the mumford tern-year we start out the month at 265 basis points which means we're up 47. that tw year you just looked at is up 56 basis points for the month of august and get this, bund yields are up 11 out of 12 sessions as we continue to move and these fed fund futures 38 1/2 basis points lower for

the month bringing more fed in and the dollar index it's only 3/6 of a cent from 20-year highs and contessa, august has been a big month for yields >> we'll buckle up for september, thank you, rick >> oil closing for the day and the month, and falling below pippa stephen has more for us. >> what a month it's been for energy let's run through the numbers. wto down 9% for august making it the worst month of the year as recession fears weigh. the contracts are down for the third straight month for the first time in more than two years. global benchmark brent crude dropping 12% for august. take a look at gasoline futures, down 26% on the month. that is the worst month in more than two years as well and moving over to natural gas it is up roughly 11% for august and on track for its fifth positive month for the last 6th.

over in europe, prices have pulled back from records, but that contract is still up more than 30% for august, and as we've been discussing that's cost electricity prices to surge with august now the most expensive month on record for power. meantime, russia's gazprom also halting flows via the nord stream 1 today citing maintenance and the key pipeline which runs through the baltic sea expected to be offline, contessa, through september 3rd. >> thank you very much for that, and now to the cooling housing market mortgage demand is 23% lower than the same week a year ago. according to redfin, 16% of purchase agreements fell through in july and prices down 6% from june's record. joining me now is housing player --? i'm a power player now >> if cnbc calls you a power player you indeed are a power player >> i heard a realtor friend of

mine say that sellers think that it's last year and buyers think that it's next year. is there any indication that these two gs two groups that haa vested interest. >> whenever the market changes it's hard to put deals together because you're absolutely right because the buyers are looking at headlines for the future and the down the street that sold four months ago or eight months and not as many deals. >> so i want to ask you about the fact that the contracts are falling through. 63 thousand home purchase agreements fell in july and 16% of homes, and what's leading buyers to say yes, we'll buy and then no, we won't. >> some of this is economic uncertainty where their portfolio's gotten waxed and the stock market and they're worried about their job and much of it

is they're reading the same headlines that you and i are discussing now and that time is on their side. as they pull out of this deal they'll get a better one and some of those numbers are truly shocking if you look at jacksonville, las vegas, san antonio, and one in four contracts are being canceled once you have a deal at hand >> are you seeing a pandemic hot spots for housing now coming under more strain than, i don't know, steadier locations >> it's a combination. so a place like boise off 40% in sales, and then it went boom and then bust. there's so little volume there that when all of these californians come streaming in it sends the housing market haywire and we see softness in california and prices are down in the san francisco bay area and they didn't go up that much during the pandemic and they don't have as much room to give up and then in southern

california you're also seeing really soft demand and sales are off 40% in san diego which is unusual. traditionally that's been a pandemic destination >> describe this for what exactly and rising rates is a part of it the other ideas are what >> well, some housing demand was pulled forward during the pandemic and a bunch of people who are going to move, got in gear and did it, and did it in 2020 and 2021, and i don't know that activity is really that low. it's just low compared to incredible highs it's a tough comp right now. >> what about the traffic on your site? are you seeing a lot of buyer traffic and interest >> well, there it's a tale of two markets and so the buyers have come back because they're being drawn if by lower prices and it's pretty dreadful in may and june and now in july and august it's been stronger and there are so many sellers that

have decided to wait this out. if they don't have to sell they're not going to sell. when we saw inventory shoot through the roof in the great financial crisis, that was under duress and these people had mortgages that were were due and people will wait it out and they will >> very quickly, when people cancel contracts how do they do that what are they citing to get out of it? >> well, they might say the appraisal came in low. they might say that they found something in the inspection that they don't like. there are all sorts of ways if you don't want to do it. sometimes people are walking away from their eascoscrow monen prices dropped so people said even though i don't have an out you can keep my earnest money and i'm going to go shopping elsewhere. right now i think they're just

us using contingence. >> power player. >> power shirt, man! >> thank you a charlie brown shirt. >> it's pretty good. >> bye >> bumble bee. engineering firm bosh investing in a hydrogen fuel cell plant in south carolina south carolina that is nlast 24 hours? only nature's bounty does. with immune 24 hour plus... you get longer-lasting vitamin c... .plus herbal and other immune superstars. get more with nature's bounty. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

welcome back to "power lunch," everybody. there is the future of hydrogen powered cars and bosh is making an investment in a south carolina plant phil lebeau has the details. hi, phil. >> tyler, we'll eventually get to hydrogen fuel cell cars at some point in the future and in the near-term, most of the investment will go to commercial vehicles and hydrogen fuel-powered semitrucks and to that bosh announcing that it will be investing and opening a hydrogen fuel cell plant in anderson, south carolina, pumping $200 million into this plant creating 350 jobs. production is expected to start in 2026. hydrogen fuel cell semis are really where the investment is

when it comes to hydrogen. like at nikola, they are testing out their hydrogen fuel cell semis that they expect to go into production and commercial service next year, already testing them in los angeles and one other note as long as we're talking about future power sources for vehicles, north carolina, is where toyota plans to open an ev battery-production facility they made that announcement a while ago, but today they said we'll triple that investment in that facility and they'll bump that up and triple the investment of $3.9 million and production starts in 2025. a lot happening in terms of this next jen rgeneration of evs andl cell vehicles. >> what's holding back the development of these hydrogen cars >> well, it's going to take a while for the infrastructure and that's why you see it on the commercial side, and it was ease 20e see a fleet of operators saying let's put in a hydrogen

pump here that you can fuel up all of our semis and it will be there eventually, but way down the road, 15, 20 years down the road >> phil lebeau, thank you very much appreciate it. up next, three stock lunch and e stthbe performing names in the worst performing sectors "power lunch" will be right back ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers.

♪♪ it was my dream to be an entrepreneur based upon the examples that i had growing up. and that was important for me because you can't be what you can't see. the ey entrepreneurs access network has a tremendous impact on my business and other african american and latino entrepreneurs across this country because they give access to networks, business opportunities and capital.

all right. time for today's "three stock lunch. electronic arts down 3% in '22, outperforming the s&p which is down 16% solar edge, that stock down 2% and t-mobile shares up nearly 25% near to date todd gordon is the founder and cnbc contributor what we're doing here is we're cherry picking the best house in the bad neighborhood, i suppose. let's start with t-mobile which compared with a couple of its competitors is lighting the house on fire. >> it sure is, tyler and, unfortunately, i hold at&t and verizon.

i don't hold t-mobile. i like it. it's been a great chart. they raised their guidance last year, picking up new customers where verizon and at&t are nowhere near that. this deal with star link is amazing. i'm thinking 5g is a big disappointment so many dead zones and the deal they announced will make up for that it's not a high band width but you can do text and voice calls. it's interesting so can starling pick it up and distribute, going into beta next year it's unclear if they will go to other care yes, sir. it's interesting in adding it doesn't pay a dividend. >> it's beyond me why in this modern day and age there's any spot in any city you can't get cell phone service it's ridiculous. i'm with you >> contessa -- go ahead. i'm sorry. taking the train to new york city, two hours away, i can't get service to call cnbc on the

way. >> you and i are probably living in the same town >> you deserved that quiet time. >> okay, all right understood >> solar edge, talk to us about what you like about this stock >> earnings were good. they beat estimates. their margins dropped quite a bit, about 35% year on year. i don't own it i like the industry. i own their biggest competitor end phase. i think it's a much better stock. they have an allegation from some patent infringements. the valuation from solar edge is more compelling but it comes at a premium because of how the two products differentiate themselves i think end phase is growing faster, they have better margins. end phase product, no single point of failure where they put these micro inverters through panels and it feeds them in so if that one goes, it's a problem.

enphase broke out and i like it better >> electronic arts, you hold it, right? >> i do, yep a great stock. they've been shopping themselves, tyler, to be a buy they recovered nicely post covid. they've been consolidating around the 145 highs there's a concern across the industry of slowdown post pandemic the deal with amazon seems to have gone quiet. there's big open interest in the september options coming up around the 150 call strike compared to all of the other options. maybe something will happen. they have a strong hold in the sports gaming like madden and fifa soccer and nhl. they did a share buyback it's quiet it might move higher if household debt is rising, why are credit scores at an alti hh?l-meig

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. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get

your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

with all the talk of inflation you might think credit scores are suffering but not the case dom chu to explain why that is >> contessa, tyler, what if i were to tell you at no point on record have americans been more credit worthy than they are right now even with the inflationary threat and everything else happening in the economy? well, so the folks at fico, they do the fico scores, right now the national average fico score

is 716 record high. it's unchanged from last year when it was also a record high but it's the first time over the course of the last decade scores have not gone up since the great financial crisis that's an interesting point to watch. it leveled out at around 686 in the wake of the great financial crisis now as for how those scores break down, at one point here you can see over the last ten years we had a number of folks out there with credit scores in the 750 to 850 range that's really, really good right now you can see the blue line there roughly half of all americans have a credit score between 750 to 850, much more than telephones just a decade ago. that's the key thing here. the interesting part is total utilization of credit which is how much debt you have versus how much total credit you have available has ticked higher so it could be a warning sign about the future right now as

people -- >> and that damages your credit score if you use more of your available credit, you have more debt how do we explain this increase? >> so this could be a lot of the savings built up during the pandemic and everything else, but those savings are getting drawn down and people are using more credit. >> thank you >> you're welcome. "closing bell" starts right now. stocks mostly lower on this final trading day of the month, and it has been a rough one for the bulls. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand now in the market. lower across the board only one sector higher, that's communication services thank you, meta, netflix, comcast, fox, perhaps moving higher off that snap news which we'll get to snap is a winner today as well looks like everybody else is lower. materials, consumer discretionary are the worst performing the nasdaq down 0.4%