if you are unsure whether the retest of the june lows will be successful this is the type of place you can easily hide out in with a portion of your money until, in fact, we have a little bit more confirmation if that will hold. >> back to you, weiss. >> psq for the reasons i mentioned. >> good stuff. good to see everybody. i'll see you all in a few. "the exchange" is now. thank you, scott, and welcome to "the exchange." i'm deirdre bosa in for kelly evans. stocks are down for the fifth straight day, the nasdaq down. now the worries are piling up. china and covid shutdown, new chips hit -- chips stocks hit by new government restriction we haven't even mentioned jobs yet. the employment report is out tomorrow as you probably know. so will the labor market continue to be strong and what does that mean for the market? plus, we have chips, cyber security and yoga pants coming

up in earnings exchange. we will get you ready for all of those reports. first dominic chu and the market numbers. an ugly start for september. we knew it was coming. we're drifting back down to session lows at this point to your point it is riged acros the screen here. we're down 46 points at the lows of the session, we were down 52. at the highs we were still down 19 that's the range, down 46 right now. 3908 the last trade there, figuring out whether we're going to hold these numbers. dow industrials down the composite for the nasdaq 11,557, down 258 points, 2% declines the reason a lot of folks are paying attention 3900, the level a lot of folks are watching right now for an area of support. at the lows of the day we were at 3903. we're at 3908 right now and the

reason why you are seeing a little bit of that move here the last time we saw this was around mid-july, not, again, the lows in june but whether or not that pullback that's taking place right now is going to hold at these levels could be something where a lot of traders say maybe this is an indicator whether we retest some of the june lows. keep an eye on the 3900 level. one other place to watch is interest rates they're moving higher across the board, but the ten-year note up 13 basis points or .13%. remember the cycle high here was at the highest level going back to june in the middle of june, rather, so watch that ten-year note yield yes, the economy may be slowing down and watch the commodity producers, oil and gas and certain metals on the base side of things. wti crude down another 3% today,

$86.87 the energy sector, again, the underperformer today valero energy, schlumberger, down 4%. it's not just gold but it's copper as well and those copper prices taking a dip on the economic concerns down 6.5%. freeport oil, all things to watch, d >> helpful on the inflation front. thank you, dom a closer look at what is putting pressure on the markets today. we have team coverage all lined up live in beijing with new lockdowns on the manufacturing and supply chains. kristina partsinevelos here with me at cnbc hq with the fallout of u.s. esrestrictions on chip sales to china, and steve liesman with one of the most important jobs reports not a small city >> reporter: is not a small city at all

21 million residents have been ordered to stay at home for the next four days, masks and testing. it's unclear if the stay at home order will really end. intel says that its chengdu plant is in a closed loop system chengdu says other factories with make similar arrangements where workers live on site the chengdu is the latest of several series of covid curbs. the port city imposing a targeted lockdown. chengdu has urged its people not to leave the city and then the port city has had four testing rounds since the weekend this is a sensitive time where

the beijing leadership will be meeting in just six weeks. they are likely going to be choosing president xi jinping to take an unprecedented third term and authorities want to make sure nothing, including major outbreaks, distract from that. >> thank you very much the restrictions the u.s. government has put on chips sales to the country kristina partsinevelos has the details and more on the fallout from the chip sector nvidia down more than 11%. >> reporter: let's start with the news we saw yesterday. the united states implemented new licensing requirements to stop the transfer of cutting edge technology to russian and chinese firms especially any associated with the military so that means chip firms like nvidia are caught in the cross hairs. nvidia, the stock hit a 52-week low on the news that it would have to get a license to work with chinese customers it doesn't do business in russia and to break it down nvidia has two major ai chips, artificial

intelligence chips, one called the h-100 and that is still in its development stages and the other called the a-100 on the market for about three years or so but today the latest news is nvidia found out the u.s. government is allowing them to continue to develop the h-100, so that's the one that is not on the market just yet, to chinese partners a green light for them as for the other chip, the a-100, that one will still need a license to sell to mainland china. but the company can continue to ship the chip from its hong kong facility to countries like the uk or france nvidia, though, anticipates a $400 million loss in revenue per quarter from china whereas amd, not just nvidia that will get hit, said they don't necessarily expect the latest requirements to have a significant effect on its business some wall street analysts point out the biggest users of chips in china are cloud and internet providers not the military

and that there are no direct local substitutes. china is definitely not happy about the move, vocalizing it today. the news hitting nvidia at a time the company is facing a setback in data center sales growing but at a decelerating pace >> down nearly 30% of the month. kristina, thank you so much. investors waiting tomorrow's big jobs report. steve liesman with the good and the bad wall street wants to see. s what the consensus >> reporter: another strong jobs report is expected tomorrow, the concern for markets as you say they're looking for at least some softness and slack to develop in the jobs market that would give the fed comfort that inflationary pressures, at least from the labor supply standpoint, are easing the consensus 18,000 jobs, that is down from the half million plus but still above trend wages pretty healthy up 0.4% to an annual rate of 5.3%

there was, i guess, unfortunately here, again, some good jobs news today jobsless claims down for the third straight week. the ism manufacturing index it rose to its highest level since january. markets pricing for the peak funds rate to rise to 3.97% up from around 3.80 as the bond and stock market look to be taking seriously the message it will be remaining high or at an elevated level for some time. the economy will be cooperating and a soft jobs report may be better but a different way i'm looking at this is as follows. whether or not there are gains in the hot parts of the economy or if they're being created in places like health care and leisure and hospitality which still lag behind their prepandemic employment levels. i think that's less of a concern, folks >> thank you, steve. so given all of those pressure points, where can we expect the markets to go from here? my next guest says he would not

be surprised if we dip in the lows the next couple of months and brings us three names he says are well positioned in this environment. joining me now is the president and portfolio manager of permanent portfolio family of funds. michael, how are you positioned heading into the jobs report tomorrow and if it is softer than expected do you think the markets will take that as a positive signal, or is what fed chair jay powell said still so top of mind he's going to be aggressive, he needs to see more than one report, more than one month's worth of data? >> good afternoon. we're positioned pretty diverse right now. we have a mix of stocks and bonds, u.s. and non-u.s., precious metals, commodities, et cetera we've been a diverse pied fund we haven't changed the stance. we think in this environment hedging your bets and having multiple avenues better protects you from minimizing down side risk as well as avenues to profit so that's where we're at

specifically on the jobs number tomorrow we're long-term investors so we're not doing anything special in terms of positioning and i do think that regardless of what happens the fed through powell, through other fed commentators since jackson hole have been largely putting cold water on the fire with respect to reversing and cutting rates or that this is going to be a quick fix. if the fed holds true to their voices and we know sometimes that's a challenge they've changed direction before so that's always a risk and possibly a risk to the upside for equities begin the waythey're talking now, if they hold true to their words, this is going to be a long slog with higher rates and would lead to a recession in the next 12 months if we're not already in one >> let's talk about your picks and how you protect your picks and portfolio in this environment. companies with pricing power, control cost structures. who are you looking at >> yeah, i mean, the three that

i mentioned, lockheed martin in the aerospace defense area, costco wholesale, the retailer, and chevron, the diversified energy producer. all of those have dividends. chevron and lockheed are trading at reasonable market multiples lockheed martin. costco is a little expensive i would wait for a downturn. these are stocks that are defensive. they should hold up on the revenue side given the economic environment we may enter into and still for a long-term investor have dividends. there are reasonable places to put money in the stock market which is a risky asset class given the backdrop that may occur. >> i know you're not a fan of cash because of the rate of inflation, however, there are a number of money managers that think this is a safe place to hide we could retest the lows we saw at the beginning of summer

do you think for longer term investors this could be a place to hide for now? >> well, cash is earning you negative 8% or 9% right now. i think you can do boater through a diversified portfolio. i think it depends on your liquid needs, how safe you feel, et cetera, et cetera if you want to stay invested then i think can you do that at a rate that may see the cost of holding cash at the moment while still being liquid short-term treasury funds, for example, we run one. it's a negative 1% 1.5% you can manage risk and manage down side while still outperforming a pure cash investment right now and then deploy it when the dust settles and the skies clear and you have a better idea what may be occurring down the road there's a lot of unanswered question it's minimizing down side risk while putting yourself in position rather than making strong, high conviction bets

that's what we're seeing >> it is a tough environment especially for growth stocks which we have seen come down a lot. however, is there an opportunity in some of them? we were talking about nvidia down more than 11% today, almost 30% over the last month this is a category leader. do you find any value in some names like this in the tech space? >> we actually own that one so we're familiar with it yeah, i do we tend to invest in a diversified mix of equities across sectors so there certainly are some interesting technology stories, for example, that have sold off a lot of the tech stocks selling at huge multiples to sales and other crazy metrics. that doesn't necessarily mean they're cheap but are more reasonable and if you can find a way to sort of grow into a market multiple over time maybe an improving economy down the road when the cost of capital, interest rate issues get resolved, for a long-term investor this is an area to nibble you have to realize they could

go down further even though they've come down quite a bit and there's a lot of names across tech and subsectors in tech nvidia would be pun. i would look at the enterprise software as another example and we're certainly involved in those areas as well again as a long-term investment from a safety standpoint i don't think they're as defensive as names like -- >> yield rise as well. thank you, so much, michael. coming up, we are continuing our weeklong state of jobs series the ceo of recruiter.com joins us with the tale of two jobs markets. lululemon, be broadcom 30% off recent highs all ahead in "earnings exchange."

welcome back to "the exchange." we count down to tomorrow's big jobs report. the labor market remains resilient but as new data from recruiter.com shows that depends greatly on the industry. knowledge workers are still in high demand with recruiter sentiment out for the second month in a row and candidate sentiment at the highest level all year

recruiters worked on filling fewer roles last month than any other month this year and the majority of recruiters reported an increase, applicants were seeing a growing number of companies announcing layoffs reports just crossing that t-mobile laid off employees. for more let's bring in recruiter.com's ceo. evan, thanks for being with us today. what do you make of the latest headline we're getting more and more. workers are still in high demand are you anticipating that trend to soften over the coming months >> yes so first of all, thanks for having me back, deirdre. we are seeing this tale of two jobs markets as you mentioned the recruiter sentiment is up 3.6 out of 5 the candidate sentiment is up. knowledge workers are still in high demand. as you pointed out, the work load, meaning the number of roles the average recruiter reported working on, it was 16 last month, two months ago, and now 10 that's a huge drop

what we think that means is that companies are now more careful in what they're hiring, not overhire, overhire and overhire but recruiting the right people. we are seeing hybrid roles now replacing in person as the number one slot. that means those are really the knowledge workers, people who can go back in the office three days a week, work from home two days a week as opposed to the factory workers where you have to be in the office five days a week the other market, as you mentioned, the layoffs we keep rebounding >> so it feels like some of this data, though, is at odds with each other overall candidate sentiment increased. average number has plunged, more than cut in half this year is there a disconnect here are people looking for jobs not really understanding how the market is turning and how quickly it's turning >> i think the job mobility we predicted to start growing

significantly as the great resignation stops is picking up. as you look at the data that came out yesterday from the j.o.l.t. report, the difference between the number of people who quit in july of '22 versus july of '21 is only 4%. 11.2 million people. it's a 2% difference finding talent is hard it's a hard thing to do. now the larger companies that were well equipment, sophisticated with tools and recru recruiters were able to not just hire the talent they wanted but overhire we're certainly seeing that rebalance now. >> a term you hear more and more these days is quiet quitting people not quitting their jobs but taking a step back layoffs or hiring freezes do you think people are going to have to pick up more work

is it becoming harder to fill in-person jobs >> i think the companies get to decide i think you are seeing companies figure out are they going to be a teaching organization where they're hiring people to teach them how to learn how to be good employees whether that's the banking companies that are forcing companies back to the office and obviously you have factories you have no choice, but i think companies are deciding what they want to be like, what culture do they want to create, and candidates are following suit. i think that candidates now -- it still is a candidates' market i saw a great report it's like the slowest -- the fastest amount of time an unemployed person was able to find a job in, like, decades, decades it was like 15 weeks or something like that. incredible how fast people could find a job that want a job >> it feels like there could be a huge shift under way evan, thank you for being with us recruiter.com, thank you still ahead extreme weather and severe droughts are fueling

interest in water. we will break down the numbers and speak with the ceo of one of the key water players next as we head to break let's get some show and tell where we show you a chart and tell you the story. here is what the ceo told us about the macro environment. >> we are seeing our customers in the chemical industry, the gas industry, the wood products industry, pharmaceutical industries, these guys are gearing up for recession they are in recession planning and they are really rethinking their business processes there's no question. >> now it's not the only company worried. we spoke to the ceos of okta and samsara. they mentioned similar concerns around the demand picture and are all getting slammed today. this is redefining storytelling, at the speed of now.

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welcome back to "the exchange." the month of september is historically a tough one the dow is fight to go try to get into positive territory. we are closer at session highs, down as much as nearly 300 points the nasdaq still the underperformer down 1.7% take a look as well at asana, zscaler, down 10%. it is on pace for its longest

weekly losing streak since may we talked about some of the challenges facing software intel not down as much as some of the other chip names. we talked about it today but is trading at its lowest level since june down 50% from their recent high. over to tyler mathisen now for a cnbc news update one student has died and another injured in an apparent stabbing at a high school in jacksonville, north carolina a teacher was also injured a student suspect was arrested after the attack and there is no ongoing threat to the public in indianapolis a 22-year-old man charged in the fatal shooting of a dutch soldier and the wounding of two others more people involved in the shooting could face criminal charges. and two top trump white house lawyers will reportedly appear before a grand jury probing the january 6 attack on capitol hill former counsel cipollone and

philbin are expected to answer questions after being subpoenaed they will be the highest profile witnesses yet to testify before that grand jury. the other trump lawyers trying to convince a judge to appoint a special master to review documents recovered at mar-a-lago join us tonight. i'll be there in for shep to look at their case and their chances for success. that is tonight at 7:00 eastern. deirdre? >> i'll be watching, tyler, thank you. still ahead, badm,roco lululemon on deck with results what you need to know to position on all three of those names.

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welcome back earnings season is winding down. still a few key names reporting after the bell let's get to today's edition of "earnings exchange." the action, the story and the trade on broadcom and lululemon. first up broadcom down 3% today, nearly 30% off its highs, on pace for the worst year ever its earnings have beaten the street 18 of the past 20 quarters kristina partsinevelos has the story and david katz, matrix assets investor has the trades

>> just in june you had management from broad come say they still anticipate demand to outpace supply they believe near term demand is staying strong still higher than precovid a few barometers you have of course broadcom connectivity we saw their business is primarily based on prescription based model. storage-based chips sector has been weak. can that offset the weakness in storage? >> david, what do you think? what are you looking for and do you expect much commentary on

the vm >> we think broadcom is doing well we would not buy the stock in front of earnings because it's been a treacherous earnings system technology has had a lot of misses along with apparel. we're wary about stepping in front of it. if you have a 6 to 12 month time frame it is well positioned at a 13 or 14 times earnings pace we have less of a conviction >> down 10% ahead of this afternoon's report, on pace for its worst year on record kristina, another san francisco company. >> and not profitable. there's a difference there and very new you can call it a trouble shooting company they help distinguish if there's any problems in the i.t. infrastructure the problem with pager duty, i

shouldn't say problem, there's a lot of competition in the space and data dogs and splunk, competitors building up infrastructure as well it does have a larger market share because they have lower price points >> david, where are you? it's one of these companies that pagerduty sold as a best of breed. we spoke to okta ceo about demand and integration what are you looking for from pagerduty? >> the difference between that and broadcom this is the type the market is expecting 30% revenue growth the market will be punitive to them this is one we wouldn't buy in front of earnings but an area of the market woe are avoiding.

they are high valuation companies. >> thanks. kristina, thank you, also, for bringing that. to one more stock here, lululemon, hot during the pandemic and the ath/leisure phase. comp sales expected to grow 17% year over year courtney reagan? >> reporter: lululemon seems to always perform every time we get earnings this quarter is not expected to be any different a lot of the analysts are thinking the sales will be at that upper end of where the guidance was and where consensus is not beating consensus even though, of course, prices have gotten higher on almost everything across the board on what we buy, they have been higher at lululemon and they have pricing power and have proven they can do that. potentially the level of

inventories. inventory was up 74%, less so on a unit basis because of the cost increase taken on that inventory but that was a hefty level even though management said they were comfortable with it. that's one area i'm watching lastly to the pricing point i think the margins will hold up much better for lululemon than other apparel or retail players right now because they just don't do sales like everybody else does. they do a level of clearance frankly, they don't have to. pretty impressive. >> so, david, they have pricing power. it is still discretionary spending that could take a turn for the worse. how are you feeling about lulu >> a very good business but we're not crazy about the stock. the apparel industry has had a lot of blowups in the last few months and even though lululemon

seems to be getting by that, a difficult headwind can put pressure on them the stock sells at about 30 times earnings we think nike, which has gotten beaten up even more this year is a better valuation and a better long-term play just not a fan of the stock here >> lululemon has had good success in mens wear and i wonder if there's a connection to return to office, what we're hearing from a number of companies and i know a lot of men who like to wear the pants and you can kind of dress them to be to go back is there a benefit there that could help the stock hole up better than some other retailers? >> i know a man that lives in this house that likes to wear the abc lululemon pants for all occasions. their men's business has been on fire in the beginning there was skepticism really not so much anymore

i expect that to be the same thing. a great point with return to work, return to a more casual work place where you can get away with wearing some of those ath/leisure pants that you can hardly tell they are ath/leisure. very interesting >> my household, oo, is someon who likes them i don't know about you, david. they're comfy and they look good thank you, courtney reagan and david katz a quick programming note, lululemon's ceo calvin mcdonald will appear on "closing bell overtime" tonight. don't miss that. still ahead on "the exchange" shares of apple down 4% ter af coming very close to their all-time high. next week's event be the boost that gets it back there? we will discuss after this quick break.

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welcome back we are less than a week away from apple's big september event where new iphones are widely expected to be announced steve kovac joins me now >> next week, on wednesday, the launch is coming and what tim cooke has called a cocktail of head winds, inflation, foreign exchange, all of that we've been hearing the last few months still cook saying the demand for iphones remains strong and apple is reportedly shifting some production of the new iphone to india earlier than usual four iphone models two, quote, regular iphones. and then two pro models that will lose the notch at the screen and squish the sensors giving you more screen space and

a new apple watch including a model reported to have a brand-new design, the first major design since the apple watch happened in 2015 people are calling it the apple watch pro, more rugged lots of new features including apple pay later, the buy now pay later product and you can edit the i messages finally more interesting, the rumored subscription plan, you pay one fee and you get a new iphone each year plus digital services like apple music, apple tv and icloud storage >> we talk about apple as a stock, so much market leadership it was close to all-time highs in the summer. a little bit more vulnerable are investors still interested in the services and how to grow that buy now, pay later and that subscription service

>> yes, that's one feature but apple has large ambitions in the wallet app they think they can replace the physical wallet. you can upload your driver's license in a limited way but you can see where they're going with that and buy now pay later a huge area of growth for apple in the fintech world and then on this iphone rumored subscription plan, that just keeps people locked into the apple ecosystem, boost that is all-important services business and keeps iphone sales steady. if this is priced right and can keep people upgrading automatically every year that's good news. >> cook is going to be busy next week flying from code and then back to cupertino for the presentation >> a huge apple week >> and at a very good time, right? the markets certainly want to hear from cook >> as apple goes, so goes the market they need a little boost to make everyone feel more optimistic.

>> steve kovac, thank you very much i'll see you next week in person again. and coming up, extreme weather events and concerns wl lkwater scarcity weilta to the ceo of water technology company about how the company is working to fix things around the globe and our financial planning tools can help you reach them. that's the value of ownership. [zoom call] ...pivot... work bye. vacation hi! book with priceline. 'cause when you save more, you can “no way!” more. no wayyyy. no waaayyy! no way! [phone ringing] hm. no way! no way! priceline. every trip is a big deal. lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”.

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welcome back the first trust water etflower today but up about 6% over the past two months as droughts took hold across the united states. pippa stevens joins me now and how investors can buy in, pippa. >> the climate crisis is driving increase weather events including record droughts and a spotlight on clean and smartly used water europe is grappling with its worst drought in more than 500 years. here in the u.s. 20% of the west is in extreme drought and the next three decades water demand is forecast to grow by 30% now this is a multidecade theme and for investors looking to gain exposure the water universe is large and includes many different types of companies several etf track the space offering broad exposure. that's names like the global x clean water fund, water

resources fund and the first trust water etf. on a stock specific level american water works is the largest water utility in the u.s. others include american states water and essential utilities. one interesting area is companies working to efficiency. our drinking water system loses 2.1 trillion gallons thanks to leaks according to the american society of civil engineers, itron, badger and xylem are trying to solve these many, many inefficiencies >> and they're becoming more prescient. federal support for some of those industries and it feels like as we face other water crises, what's the outlook for federal support for the sector >> the climate bill just passed does include some funding. that's more pointed in nature and specifically targets argue cult it all shines a light on how our

infrastructure has to be updated and the prior infrastructure bill, that did include a lot of money for states and municipalities that is one area where they can receive that federal support to upgrade systems. >> and, pippa, what is the latest in mississippi? some incredible images >> out of jackson and they declared a state of emergency earlier this week. the governor has said this is very different from a boil water notice which residents were already under. if you're going to shower don't open your mouth. this comes back to aging structure and they have been left behind for decades and the system was just overrun and aging and old and it needs to be updated. >> pippa, thank you so much. pippa stevens. one of the companies at the forefront of working to mitigate the water crisis is xylem helping countries be more water secure with technology for clean

water delivery to waste water treatment. joining me is the president and ceo of xylem patrick, pippa gave us a good view of the inefficiencies in the system how are you working to improve that >> first of all, deirdre, thanks for having me. i appreciate being on the show i'm just back from stockholm myself where once a year many minds come together around the world and focus on things like drought. today's drought is going to be tomorrow's flood whether it be the yangtze river, floods in california, what's going on in pakistan, jackson, mississippi, people talk about i don't think any of you need me to come on and remind people how important that is. what i do is the economic toll but the evidence of a bigger trend here is the intersection of climate change and aging

infrastructure where two pieces of data i would offer up to viewers on average 30% of the water that's intended to be delivered for use is lost along the way for reasons we can describe secondly we don't talk much about the impact on business ant production and they have lost economic profits and lost jobs so this is a bigger system, but what i want to segway with is the good news is the technologies and the solutions exist to address these issues, and i know we'll dig into that in a bit more. >> yeah, you know, patrick i live in california i'm only out east for a week and i'm well aware of the drought situation that plays into your everyday life when we talk about the inefficiencies and the technology being there are businesses focused on it businesses that use water and rely on it do they have their eye on improving technology and decreasing >> i -- i believe their eyes are turning towards this

it is happeningover time it happens by geography and industry and as businesses understand even more that the value of water to them is not the price or the cost of water to their operations and it's actually rather small and miniscule, but it's when they do not have access to sustainable water supply and they're working in areas of water stress and therefore they have stoppage, but two, there's increasing regulation around treating waste water as well and so that cost of regulation is increasing, and i think they're brands and images in terms of being responsible and water is up play is becoming increasingly important and that's why many more of them are taking a neutral water pledge in their operations so i'm optimistic that the movement is beginning here, but again, until people understand that the solutions exists to deal with it, they can be frozen by fear. >> that's the enterprise side,

patrick. what about the government side we just spoke to with federal support? is it enough is the government doing enough right now and what does that mean for your business >> we are encouraged by what's being done not just in the u.s., but whether it be in china's five-year plan and the eu mandates and the funding that's happening there as well as obviously within the u.s it's unfortunate that it's taken these events to galvanize support and attention because we're optimistic about the point, and i often say that we have an angle and the power of digital and technology has significantly reduced the cost of investment required to address these issues i've had a couple of examples and prototyping what's happening around the world in south bend indiana we were able to work

with them to reduce the amount of capital required to deal with severe storm water overflow and to reduce the overflow by 80%, and they were able to do that at about a half a billion dollar reduction in cost. in malaysia, we worked with the malaysian utilities there to help them identify with the clean water pipeline that is significantly improved their water distribution and also significantly reduced their operating cost so my message is that we need not be afraid of these things because of a price tag, the technologies exist to do these things. >> right >> they lower cost than ever before >> are those moving in lockstep and the price of water i was reading for most people was less than the cost of the cell phone bill does that increase as we have more droughts >> that depends upon the state of affairs in any one community,

but again, i really want the viewers to understand that the opportunities exist here to do things in a much more efficient and much more affordable way, and for that reason, again, i am optimistic that we will get through this, but it is a team sport and we all need to be in this effort together >> great insights, patrick and great message. thank you very much for being with us. patrick decker with xylum. coming up, the semi shortage has put a crunch on the automakers and as we head to break, stocks off session low, but they're still in the red and the nasdaq is still the biggest laggard down 1.8 we do want to check on one more earnings mover and that is nutanix after beating estimates anthe'd ers some green out there of nearly 25%. we'll be right back. wireless ne. 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.

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welcome back to the

"exchange. one per thing before we go auto sales have been lackluster thanks to the semi shortage and august proved no different phil lebeau joins me now with the numbers. phil >> deirdre, these are not real strong numbers and that's not a surprise we know that the chip and the supply chain issues continue to hamper the supply of new vehicles as a result, when we take a look at these august sales results and we talk about primarily the foreign automakers here. we get ford tomorrow and we don't hear from gm until the end of the quarter keep in mind, these are in comparison of august of raft y raft year where the supply may have been up or down dramatically the average transaction price in the month of august, 46,259 and that's the estimate according to j.d. power and that is close to an all-time high and that speaks to the fact that there's just not a lot of supply out there. if you're going to buy, you're not getting the incentive and the pace of sales 13.3 million and that's -- you know what that

does that brings down the pace of sales for this year below 14 million, and i bring that up because you've got to go back to 2011 to see annual auto sales come in below 14 million for an entire year and we are on pace for that at this point because the pace of sales right now is 13.7 million take a look at toyota, honda, hyundai, and again, the thing to keep in mind because they've got limited production in part because of the supply of chips as well as the is up play chain being fairly fragile at the end of the day, when you're looking at the auto stocks right now. >> right >> they're just sort of in this period here where they can't get a whole lot of traction despite the prices that they're selling their vehicles for there's just not a lot that they're doing in terms of production and they're limited with what they can do. >> people are still paying up and the demand side of this, people have been willing to pay up when supply has been tight and what do you expect that to look like as we head into the back half of this year >> i don't think it's slowing

down >> maybe at the low end of the market and on the new market, i don't see it slowing down. we'll see what the economy brings us for the economy. phil lebeau, thanks very much. the markets are still in the red and the dow down by 78 points. that does it for "the exchange." "power lunch" starts right now ♪ ♪ >> and it's great to have you for "power lunch." i'm confessa brewer in for kelly evans. the sector is feeling the heat from an inventory build and a top analyst for what's next on that sector. u.s. oil inventories are dangerously low. that's the call from citi's ed morse. we'll talk to him about the decline in crude prices and the biggest risk to supply, but first to tyler and a check on the markets. >> thank you, contessa >> welcome, everyone stocks are