>> good stuff. off brown? >> no position yesterday, but watching this break owl. out of a triple top. >> farmer jim? >> i'll see you all in o.t >> thank you, scott. welcome to "the exchange." stocks are giving up earlier gains following a jobs report that suggests a soft land been will be in the cards we will debate, plus qualcomm and meta teaming up. is this a win for both companies. we'll give you the details and how to play it we'll get to that, but we begin with the markets bob pisani has the details

we saw the moves dow now negative. >> yeah, we lost about 40 points the dow was positive, industrials were doing well. we lost about 300 points, so tech is a little weaker. now it's flat. s&p dropped about 40 points. we were at 4010 or so about 45 minutes ago. the nasdaq was also nicely positive it too went negative the volume is extraordinarily thing right flow you see gas prices moved up. that's been on a real tear of 14-year highs. it's off of that, but you see that small move up it doesn't move energy stocks

that much, though, so this has been a very strong day to energy in general they've been on a downtrend. oil and oil stocks have been on a downtrend all this week, but this is one of the stronger dales than we've seen in a long time yields are down, but curiously bank stocks are among the biggest movers today these are all off their highs, still up for the day elsewhere moving in the overall names, they were all positive on the day, nicely, nvidia. amd, apple, microsoft have all moved to the down side deirdre, the jobs report was pretty much goldilocks

very nice moves down some of the individual reports were excellent yeah, we're going to talk later, the nasdaq is now down by nearly 0.7 is this as simple at we're heading into the last holiday weekend? >> yeah, here's the problem, you see generally, the inverse of growth stocks. , this morning, a two-year move to the down side, and tech stocks all popped on the up side

it simply affects sentiment around owning growth stocks. we just kind of move to the down side. >> bob, have a good long weekend yourself >> you too jobs added less than expected,ed unemployment rate climbed. average hourly earnings increased, also below estimates. is the market getting it right could we see a less effective fed as a result? joining me is the chief u.s. economist, and senior economics reporter steve liesman steve, let's start with you. does it change anything? goldilocks sort of means not too soft, not too hard.

overall the market has come down a bit. that was hit salve powell's speech a week ago today. but i don't think this is enough i think the fed will -- like parts of this report or most of this report, but i don't think it's going to be convinced it's out of the woods from either wage-driven inflation or that the jobs market is running too hot or inflation will come off the boil i think they'll see better months worth of inflation. i'm still pointed toward a 75 on this jobs number today i don't think that i would pretty much change from the, i don't know, the 390 where the futures market is right now. so in the near term, that's the variable here.

you're still assuming up a 75 basis point cut. in the longer term, steve, as markets, you know, were higher on the number, what would it take for an actual pivot, whether that's a pause or even a cut somewhere down the road, do you think the fed needs to see months of good numbers, or are they actually looking for actual pain as well >> i don't think they want pain. i think they expect some pain. i think how much pain is a matter of considerable debate. in terms of lessening inflationary pressures, but this is a weird moment. people try to compare it to the '70s i guess that helps a bit, but we're still recovering job loss

from the pandemic. the number of jobs should still be higher. i also think adding more people will help with the supply problem. for my take, i don't see jobs necessarily as being inflationary by themselves i think it may help solve the inflation problem. to your point a lot were focused on the labor participation rate. what did you take away from it >> yeah, i mean, that was a good sign, but you want to be really careful. the reason why economists rely more on the other record, the establishment survey, even though it's revised, it's less volatile we did have 800,000 people come into the workforce that was good. according to the household surveys, we put slightly more to work than the payroll survey

so 800,000 came in, 400,000 found jobs, 300 some-odd thousand didn't find jobs. that's objection for a month, but in the next month's reports, did they find work or not? we do want to operate perhaps with a little more slack in the economy. what we don't want to see is people come into the workforce, not find work. and we've just got to be careful. as good as this record was, it did go up by 0.2 we want to be careful with that. >> steve liesman, thanks as always for the breakdown we'll talk soon. meanwhile, dow down nearly 100 points we'll dive deeper into the special tonight "back to business." at 6:00 p.m. eastern my next guest feels

confident le with not retest the june lows. nancy, thanks for being with us. why are you so optimistic? we had a very different conversation with steve liesman that we have to see more data, it's far from certain at this point. >> thanks so much for having mel. we began adding risk back in june we thought that that was once in a generation on the opportunity. >> so we added to some of our cybe cyberyou know, that worked we got the pullbacks, and we were cautionsing that we thought we would start to see a pullback, so now what ear seeing is a lot of the elements that

need to be placed by the end of this year, inflation numbers are dropping we saw the participation is increasing broadcom, not all semis are created equal. they've been able to deliver in a relent leslie different environment. that's very different from the experience that nvidia is having dividend growth is certainly a benefit if can you guess it. >> i spend a lot of week on -- it tells a very different story. they still talked about longer times to get deals done.

>> if you look at the early reporters, they didn't caution we heard the calls from salesforce and others -- >> but they were so much earlier, right now these are all of their customers. >> no, you're right. i think you will see continued decel deceleration so i think some of this has priced in. i do think that some of it is priced in. i, we have been talking about slowing growth for about a year now, so we have defense-i fied or portfolios.

we have to be looking forward as investors. it's not necessarily the next 20 days i'm pretty confident in these names. >> i want to get to lulu i think expectations have been so low, but what it told us is that the mid to high end consumer has really held up. who else does that bode well for? >> we've owned apple for a long time and we have pared back our position down to more than half. the company is pretty fully valued, for sure, if there isn't untilly a big pop, but i think if you're invests, and you get a

pullback in apple, but we were focused on lu lu we sold our proceeds from starbucks and into other places for us it was the same reason but in an environment like this, where the people are spending are not affected. >> another sector you like that's palo alto it's hard to come across an investor who doesn't like these names. >> when do they start to get expensive for you? that's how we purchased it about six years ago. we're not actively adding. we added some recently, just

trimmed or added to around the edges, but we have a pretty full position as it appreciates, we will take money off the table. that's how you make money in investing. they're best in class, in our view >> well, it's been a decent run, at least a good hedge this year, nancy, thank you so much "delivering alpha" returns in person. you can scan the qr code there on your korean or go to cnbcevents.com who is getting the better end of the deal? how should investors plague it. plus today's edition of -- and tech, and "the exchange" is

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welcome back to "the exchange." we have every angle of this

story covered. julia boorstin is on the west coast tracking the impacts of this deal, and kristina partsinevelos has what qualcomm gets out of the agreement, and julia, let's start with you. >> deirdre, this is meta's push to get the resources it needs to build out the ar and vr universe they'll use qualcomm's extended reality snapdragon technology. this is a multiyear deal, but the terms were not disclosed meta and qualcomm have worked together for years they power the latest headcelt along with the ray-ban story glasses. the new chipsets will be optimized specifically for those quest headsets, but they will not be exclusive to meta

it shows their dependence on qualcomm it's not been ability to make its own chips. this comes ahead of apple's event next week where we could get a peek of its first headset. after meta raised the prices in july by $100 each, the question is whether qualcomm can help meta bring down the costs of these headsets and therefore drive more widespread adoption of vr. >> julia, thank you. kristina partsinevelos has qualcomm's angle on this >> meta and qualcomm, they're not strangers. they've been collaborating the last seven year, but the new long-term chip deal will include

the snapdragon technology. the relationship is becoming even more intertwiced especially since meta hasn't successfully designed these chips on their own. i must reiterate this again. these chips will not be exclusive to meta hardware, which pays into qualcomm's pivot from end user equipment. they're trying to turn it into a broader provider of semiconductors, rather than just the go-to smart-phone chip maker. it's not it's first extended reality deal in july samsung partnered with qualcomm for the upcoming phone. microsoft and bytedance are working on platforms

as zuckerberg said, they're still in the early stages of the metaverse, but vr headset demand is growing that means qualcomm can get a piece of that pie. >> that's key. so what does this partnership mean let's bring in dan ives. you say this is a step in the right direction for meta, but everything we just heard kind of says maybe the opposite. is this evidence that meta is still depending on qualcomm technology and union lining its shortcomings >> it's a step in the right direction, but a constant battle not being exclusive is significant. this is contrary to what apple, google and everyone else is doing with their own chips i think it shows weak hands for meta, and what will be a battle in terms of this ar/vr headset

>> what does it say, qualcomm not prepared to give them the exclusivity. what do you think facebook gave up here? for qualcomm, they're not going to bet on that horse there's a lot more questions than answers right now formeta, inside the lab, the fact they can't build their own chips, they had to go to qualcomm qualcomm definitely comes on the looking better meta, this just reinforces the street's view, that the meta strategy has a lot of challenges ahead. we know nvidia is the big play on a.i., metaverse also the leader in the space, it also has a bigger weighting than qualcomm, more than double, actually is this a loss for nvidia? why isn't it developing as

quickly? >> yeah. i think this is something they would want to see them get it this is just a game of thrones battle think what former -- we think early 2023, i think that changes the game ultimately they hear so much skepticism that they can pull off this massive pivot what is your play?

i think it comes down to a -- i believe that's what they're going to do. you look at microsoft, apple, and the stalwarts, but when it comes down to metaverse, that's for zuckerberg and team. it doesn't send a signal the street wants to see. >> lots of twists and turns ahead. always great to see you. cnbc will be at vox media conversation i'll be there. we'll hear from the ceo, certainly one you don't want to miss. coming up, we are looking at one part of the jobs market expected to see nearly 10 million new openings, thanks to

the inflation reduction act. mortgage rates are taking a bit of a breather today, but still holding above 6% we'll have a look at that impact the dow had been up by about 370 points at the session high we are now down, wow, nearly 190 points the nasdaq is still underperforming, down by about 1% the exchange is right back after this icy hot pro. ♪ 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.

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the only headline is from gas prom, that the pipeline will stay shut down curiously we didn't see oil stocks move much they're having their best day in a long time today, because they've been dramatically oversold this week most of the biggest names on the s&p 500 today have all been energy stocks. they all came oaf their highs, but they're still up on the day. obviously this is not particularly good news this was widely discussed already on the street. i think what you have here, deirdre, very, very thin volume. in the last two weeks we've seen about six of the last 12r lightest volume days of the

year, and this is very typical the end of august, but particularly now when there's a dramatic amount of confuse about the right direction of what the market should be it's sold off. the question is would that even be close to being enough there's not a lot of incentive to get involved right now. the question today about the jobs report, it was good news, somewhat goldilocks. we did see most of the numbers move in the right direction, but does it change the central narrative for the fed. i'm not sure it does i don't think that changed too much so i think the real issue is the market still believes the fed will keep raids higher longer, and they'll stop the pivot idea, and they have stopped it pretty convincingly be careful about making too much

about today's move here. it's very, very light volume bob pit san rest, thanks again now kate roger has a news update. >> russia's gasprom has halted all the gas flows to europe, being blamed on an oil leak at an engine and compressor station. no timeline is being given to restart the pipeline. president biden is asking congress for a emergency spending package there's also money to pay for disaster relief in kentucky and other states iran's navy briefly seized two american sea drones in the red sea. iranian sailors released the drone as the u.s. forces approached on the new, the heat wave is expected to bring record

temperatures over the holiday weekend. also heavy rains expected along the gulf cost. that's all tonight at 7:00 eastern. i'll see you back on the west coast next week still ahead, you're looking at it, it's a tech heavyweight. the name and case for why you should bail on this stock. that's straight ahead.

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welcome back we now have the dow industrials down now 200 points. let's get right to it. >> this is a stock i think -- i

think it could retest to say 150 levels in this environment, what do you want stable, visible catch flows, that's what you have the p.e. keeps falling as the fundamentals get better. obviously some of that has to do with lng prices. but an important part of the story is sales volumes are also going up i think that's really, really critical they're suspending one of their larger facilities. i'm thinking longer term, if you looking lute on the to asia, out to 2030. so i think it's a pretty good story. next up, merck, it's

outperforming competitors like pfizer and johnson & johnson you say this is a solid stock to buy, how come? >> you're seeing a divergence there. then you have merck, lilly, those charts look good so take a chart like merck, it looks far healthier. it's trading above the 200-day moving average whereas a pfizer looks like it's rolling over even with the outperformance, it's still below the ten-year average. just from a fundamental perspective, really solid drug pipeline again, back to sort of profitability margins, cash position, these are the things you want in this market. >> finally, jeff, shares are still down 16% in 2022 you say this name is still a buy? >> yeah, i think it is it's one of these things where

health care overall, it's sort of a tough market, good charts i think you have a lot of good charts in health care, but then i think danaher is one of those names. still 20% off its highs. and that's holding the recent uptrend. just for those that don't know, these guys make drug equipment, so for disease testing, vaccine development, a lot of things are tied to biotech and r&d spending, but it's a lot less risky. i think because of things like gene therapy, there is big tailwinds for companies like danaher. consumables are at higher margin i think the key is really great management that has proven it can navigate all kinds of

different environments. >> those are your three buys here's one you're saying to bailing on, apple. you say it would be so why not >> make a little controversial here it was training in this tight channel up until about the beginning of may, so it broke below it during the recovery, it ticked almost to the dollar below that old channel and moving lower again. i think from a technical perspective, it looks to be weakening. i think it's valuation, fundamental driven it was never really that expensive, and even if earnings expectations don't come down at all. you're talking 23 times in the

out years, 2024, for example i do think the slowing consumers has to create some headwinds i think you saw some slack in the labor report today we know what's going on with credit card debt, and you're starting to see some warnings with hardware sales. not completely apples to apple, but iphone is still 50% of appear 8 sales even if it retraces 50% of the current premium, so 25 times, 21 times, that's 15% down side on the stock. if earnings compress maybe more -- don't get me wrong, it's a great stock for the long term, but if we're looking at the next quarter or two, i think there's downside >> what does that mean for the broader markets. apple makes up such a big part of the s&p and the nasdaq. it is down some nearly 10%

do you think there's 15% more down side from here? >> i think it's definitely possible i think at the very least, we do test those lows. i was looking at some things earlier today, just comparing where we are today i think, by and large, rates are higher, leading economic indicators are lower you're seeing one-month lows tick up, so now 76% of the s&p, and it's been defensive leadership in the market utilities making new highs, semis making new lows. in europe they're already testing those old lows, so by and large, you take all that in combination, you take it that i don't think the peest will be supportive i think you can make the case account broad market, i think that creates the pressure time talking about. >> that could certainly by a bear signal. a lot of folks have been hiding out in apple this year we should note, too, the dow has

drifted down. still on the show, bumping up the unemployment rate slightly we'll look at the industry that could create 9 million more jobs in the next decade "the exchange" is back in two.

joining me is a wealth officer from sang wear wealth. jeff, how much of this are the gasprom headlines is just a slow friday ahead of a long weekend >> nonetheless, it's interesting, this send a new

flash. we knew and anticipated this, but nonetheless this is part of the process we have seen is there further to go, but nonetheless i see support here as 39 had you been what's fascinating, look at the ten-year note, which we saw, ever in the wake of the fed president mester talking about being so hawkish the thin volume is problematic tell us more about sent meant. for that to wear off so acquisitionly and so easily, what does that tell us about

what could happen next week? >> there's no panic out there. i think this is just part of the process. is the fed really going to pull the trigger? will they actually walk the walk i enjoy this as a trader >> i think you have to embrace this. >> net offensive or net defensive? >> more risk the start of the year to start the year we were modest and prudent. we've seen utilities, even the health sector come back, but at the end of the day, we're

comfortable with the risk being put on here. i see the bottom of the s&p 500 put in june. i know that's a lonely view. >> don't forget this is a midterm election here, i think this will bode well for the bulls. >> thanks for being with us. have a good long weekend we'll dig into the numbers that's next. before we head to break. xhb, dips lower with the rest of the market, but still a relatively outperformer. "the exchange" will be right back

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welcome back the once red-hot housing market is showing signs of even more cooling, and doing so quickly. diana olick joins me with that story. diana? >> reporter: of course it's all because of rising mortgage rates which crossed over 6% today. higher rates will likely

exacerbate what we saw in august new data shows that august marked the first month in more than two years that homes spent more time sitting on the market. this as the inventory kept rising, up nearly 27%. this happened even though thougr sellers entered the market in other words, it's stale inventory. listing prices fell from 449,000 in july to 435,000 in august in addition, one in five sellers already on the market reduced their prices a year ago barely 11% of sellers offered price cuts and yet another report from redfin showed at the end of august the average home sold for less than its list price that's the first time that's happened in a year and a half. of course, now we are in september which isnot quite fall yet, but the start of the slower housing season historically one positive note, we are getting more data on the rental sideshowing inflation hits consumers and lenders have more

pricing power. >> how do rising rates and the seasonality set up housing stocks for the rest of the year? >> it just means -- it just means even slower. we've seen the homebuilders falling dramatically and over the summer the most recent earnings reports have shown that demand is pulling back dramatically for the home builder. so as we get into the lower season unless they can offer big incentives which i don't see coming down the pike because of home builder cost it will be a slow fall and potentially slower winter >> diana how does that play out for the more techie names that we cover on "tech check" like the zillows and compasses and how does it set them up for the rest of the year >> it's a slowdown for everyone, whether it's the zillows and compasses. they are showing big losses because it is a market correction when you compare what we saw over the last two years which was dramatic in demand and low supply, that was really not

anything normal historically so now the comps are much harder to make >> diana olick, thank you. >> even despite the rise means affordability remains near 30-year lows joining me now is andy walden at black knight we just had diana run us through, and could you break down through our audience how this changes or doesn't change the dynamic versus buying versus renting? >> when you look at the buy side it's a massive challenge and diana just walked flethrough th numbers. even in the middle of august when interest rates got down closer to 5%, here are the ten most affordable months and now rates are up another half a percent and we're talking near record lows again in terms record affordability along with that they're also seeing prices come off their peak and folks are wondering is that going to continue to take place and that's having a psychological effect, as well.

>> rents, the gains there are moderating and the latest reading was up 10% year over year, so what does the first loam buyer do in this kind of option >> if you look at the payments being made and the average home purchase they're up 50% from the beginning of the year. you're talking $650 per month more just to buy the average home on the buy side of the house. they're still high over the last eight months >> it was kind of shocking i was talking to someone earlier this week who said that their son just had to sign an apartment in new york city, put down two months, needed a gainor as well, a huge deposit. it seems out of step with what we're seeing with return to work and not expected to pick up significantly even after labor day. what is the catalyst that gets rents more in line with what's happening in cities? >> you know, new york city is a really interesting anomaly

when you look at what's happening in terms of prices and back to the office type of activity, new york is an outliar. you're not seeing that in the west coast markets prices are holding strong in that new york-specific area because of that return to work type of activity so again, there's just a new balance between renting and home ownership. both are getting significantly more expensive and as you see rates move the dynamic between the two is going to shift and there will be this constant mathematical equation and this rental is more affordable than housing and it doesn't make sense right now. does getting paydown outweigh the potential risk of price correction that diana was talking about. a lot of different dynamics at play and neither one of them are overly attractive right now. >> not a great situation to be in if you're looking to rent or buy. have a good weekend. andy walden. clean energy has been an investing trend and over the

next decade it is poised to become a hot jobs trend. as we head to break take ago quick check on markets and it's been volatile today and they're at fresh session lows with the dow now down with more than 260 points kohl's is climbing as reuters reports that oak street real estate capital has made an offer to acquire as much as $2 billion of property from the company which it would then lead back to the retailer and we reached out to both companies and that stock orth 4an%. we'll be right back.le. a di just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com.

>> welcome back. alternative energy has been a hot topic when it comes to investing, but what about when it comes to jobs kate rogers has a look at opportunities in the rapidly growing industry kate >> deirdre, from manufacturing to tech start-ups, the climate space are gearing up for a jobs boom the inflation reduction act could spur the creation of 9

million jobs in the next decade between public and private investment according to a study from the university of massachusetts amhurst. they're helping make the leap from other industries into climate at companies like energy, power, transportation and agriculture mostly working on software. what we're trying to do is find the people working in tech firm and want more fulfillment in their work and trying to introduce them to the opportunity to move into climate. >> leave grid is working on solutions to deploy electric vehicles on the electric grid. more evs on the road means more business for that company. it's grown from six to 60 employees over the last two years and looking to fill roles from software engineers to machine learning and even marketing. >> we're looking for the skill sets that you would have in any other software company, enterprise software company, but

uniquely we want people who have a deep, deep passion for climate and want to do something really impactful with their work. >> really what we've learn side there are jobs out there for anyone in the space. software manufacturing, installation and more traditional rules like accounting, hr, marketing and more a lot to come. >> thanks, kate. "power lunch" picks up the market coverage right now. ♪ ♪ welcome to "power lunch. i'm contessa brewer in for kelly evans today. we are watching this big u-turn on the markets and slamming the brake on the morning rally and wiping out the gains that follow the jobs report and we're tracking the decline and we have a lineup of market pros to help us navigate the volatility and let's get to tyler with more on the sell-off. >> welcome, everybody. the market's earlier gains are all gone the dow had been up as much as 370 points and now down about 280. that's a 650-point