royalty across the pond. >> and we have watched the markets now. we've got 11 sectors positive for the day, so the dow jones industrial average, the s&p, the nasdaq all up, ending the week on an up note. >> thanks for watching "power lunch. >> "closing bell" starts right about now. thank you, contessa and tyler. yes, we've got a strong rally to finish the week. we are just about at the highs of the day the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand in the market, up more than 400 points on the dow. it's broad, 11 sectors all green. the worst performing sector is utilities and that is up almost three-quarters of 1% we've got the nasdaq composite up 2% on the week now. the nasdaq comp is up 4%, the s&p 500 is almost up 4%. we're breaking the three-week losing streak. take a look at the best performing sectors right now

energy tops the tape today as crude oil prices rise along with communication services, technology, discretionary and materials rounding out the top five big show today we've got a pair of ceos on the strength of the consumer tap tapestry's ceo will join us at the exchange to discuss the state of luxury spending they own coach, kate spade and kroger's ceo will be here to break down their strong earnings and guidance and give us his outlook for food inflation and what he's seeing from the consumer that stock is up more than 6%. we'll kick it off with the market dashboard mike santoli is here as always stocks are rebounding again, mike can this last? >> some progress is actually being made here, sara. we do have a very broad rally. all sectors up, more than 90% of all volume to the upside clearly a lot of people leaning towards the bearish side coming into this week, three down weeks. i think there was a general sense out there maybe that the june lows would be in sight.

also a little potentially positive formation you're going to see a lot of attention on this type of thing, when you have a higher low and bounce at the same levels that was a prior base in a sense. we'll see if that holds together we'll say we've gotten us back into the intraday range from the day two weeks ago when jay powell at jackson hole promised pain we closed that day at 4057 so we're above the close of that day. it really takes us back to these levels back in, again, may, june it's been a four-month trading range. it doesn't feel like it. but may 10th we were basically right at this level. the high of the day was 4068 so we're knocking around these levels i think valuation is perceived as still a headwind. take a look at how it breaks down yes, the overall market never got dirt cheap the s&p 500 still has elevated pe multiples but this from goldman sachs shows you that the 100, the one-fifth of the s&p 500 that are the most expensive are

particularly expensive based on history. you see right there, that's well above average. whereas the bottom 100 are basically at the average forward multiple this is the next year's multiple the point being that the overvaluation in the overall index is still mostly about a cluster of very, very large stocks that have not had their valuations come down as much as the overall index. so maybe that means it's better for stock pickers. maybe this is why the equal weighted s&p has been outperforming the market cap weighted one it's not as simple as saying the whole market has to get super cheap before we can bottom. >> big differences there. >> huge disparities in theory. >> i just want to mention the dollar it seems to be the center of the world right now in terms of the market mood, the barometer it's weak today, really weak the euro is back above parity, the japanese yen is getting a percent stronger. >> and that's been the case for three days or so and that's when we've gotten upside in stocks. >> it helps the market

is that a dead cat bounce or the other way. >> is it just an overbought consolidation. yeah, that's a big question. look, over the long term, the level and direction of the dollar is not that big a swing factor but recently it absolutely has because it disstills a lot of the things the market is worried about, from global tightening to obviously the u.s. being the only bastion of growth in the world. >> mike santoli, thank you very much we've got some fed speak earlier today. it is the last commentary we'll get before the blackout period begins next week ahead of the upco upcoming fomc meeting. he supports another significant rate hike, saying there's no convincing evidence inflation is moving down. kansas city fed president esther george echoing concerns over inflation but weighing in on the peak policy rate is just speculation at this point. joining us is austan goolsbee.

thanks for joining us. i feel like the debate that folks in the market are having now, so the fed was late to get on top of inflation. are they late to getting on top of the peak of inflation and getting too hawkish at a time when it's really starting to come down? >> yeah, they might be as you say, because they felt like they were behind the curve, they have got to talk tough now, and they have been and all the governors have been and chair powell has been. but we've gotten two months of cpi numbers that were -- at least the new information quite positive if next week we got more good news on cpi inflation, you have to think there's going to start to be a little pushback where people say, whoa, whoa, wait a minute should we be raising 75 basis points at every meeting if the impulse of inflation is not what it was six months ago. >> so is your view that they

should not, that they should start to calm down a little bit? >> well, i think now is a moment where for the next three months, the new month-to-month core inflation is going to be hugely important. they should be data dependen and keep their eye on that i think that precommitting that we should just raise rates as fast as really we've raised them in decades, regardless of what we see from the data, that seems a little extreme to me >> well, we know it's going to come down at the next -- the average price of gasoline in this country is $3.73. it was, i don't know, almost $5 a month ago. so headline inflation is going to come down. >> headline, yes. >> the question is what's going to be done in the meantime to the economy. >> yes, i agree with that. as you know, the fed doesn't really look at headline inflation. even though for everyday consumers they care probably the

most about gasoline and food, that's not in the fed's calculation. they're looking at core inflation and they're looking at what are those new month-to-month inflation rates we don't know. last month that improved a lot some of the months before that, that core measure was actually getting worse, and that's when the market began to freak out because they thought the fed was going to go to town. they just -- the fed needs to be data dependent now it's more important than ever. >> what is your expectation for what happens to the economy, given higher interest rates which do hit us with a lag, qt, the shrinking of the balance sheet that they're finally getting going here, the price shocks, what's happening around the world. how is the u.s. going to hold up >> partly that depends on are we truly going to put the covid era behind us. if so, we're going to geta nic tailwind from that which is the thing that has been dragging us

down over the last two years but we get a positive. but don't kid yourself if the fed keeps raising rates, that's been the most common cause of recessions in the history of the united states since we've been keeping the data and the sectors that will be hardest hit, you've already seen them get hit housing will be hit. automobiles, consumer durables, all the things that are interest rate sensitive, that's where the fed is going to tighten the screws if they need to cool the economy, that's who's going to be hurting the most. that's not necessarily the same people that led to the problem, if you were, of overheating. the overheating is going to be coming from the service sector as everybody hasn't been able to go out of their houses and go get elective surgeries and stuff like that. so the balance of who's hurting and who's overheated, those discussions will get a little more heated themselves. >> absolutely.

austan goolsbee, thank you very much for joining us. >> good to see you again. tapestry unveiling its three-year growth strategy with the goal of hitting $8 billion in revenues. up next you'll hear from the ceo about what she's seeing right now from the consumer. we're up 409 on the dow. more than 1.5% rally on the s&p. you're watching "closing bell" on cnbc.

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in revenue by 2025 and returning some $3 billion to shareholders via repurchases and dividends. tapestry owns brands like kate spade, coach and stewart weissman joining me here is the ceo >> thank you, it's great to be here. >> investors like what they heard today. what is changing at your company that's not just sort of healthy luxury consumer? what are you changing in terms of the strategy? >> well, we talked about today rolling out our future speed, which is the next phase of our growth agenda at tapestry. future speed is about getting closer to our consumers, driving innovation and moving with agility and being responsive to change in the environment that we've been in in the last two years and where we see it going forward, that's how we win

we have three iconic brands and we're powering their growth and accelerating their growth with investments we've made in the tapestry platform. so our focus is on powering our iconic brands to move at the speed of the consumer. >> so what's different about what you were doing before >> we have a maniacal focus on our consumer, to know our consumer better, and leveraging a digital platform which we've also invested in to meet that consumer where they are. and that consumer, their behaviors are changing, they're more omni channel, more omni connected, more digitally connected. over the last two years we've grown our digital business to scale. it's about $2 billion, which is triple where it was pre-pandemic levels importantly on these channels we're acquiring new customers. we acquired 15 million new customers in the last two years because we're better at engaging those customers and meeting them where they are. >> who are those new customers >> well, they're increasingly

younger, which is maybe not a surprise, because the younger customer is so digitally engaged. but that customer is increasingly younger they're coming to each of our brands in the core categories. they're spending at higher than average so it's a healthy customer coming to our brands at high average retails and they're coming back to our brands with more frequency so we see this as healthy growth this new customer acquisition i like to talk about, it's oxygen for our brands we can acquire them, meet them and keep them coming back to our brands. >> the aur which is the industry word for pricing you definitely delighted wall street when you said that you weren't going to sacrifice margins for promotions is it just because, though, i go back to this, the luxury consumer right now is holding up really well and you don't really need to get into a promotional environment at this time >> we've increased the number of

ways that we can reach our customer and know our customer better we've pivoted our company fundamentally to be consumer centric and focus on brand building when you focus on brand building and have the capabilities that our platform offers with the digital tools and the information we understand about our consumer, we can talk to our consumer about the great value we're delivering in our product. we're taking that input and using it to inform our creative process so we're bringing great and new and innovative product to the market and we have so many levers to talk about the value of the product that we don't have to rely on price. >> your stock is down double digits this year, along with competitors like kors and ralph lauren the market is increasingly worried about recession. do you see any kind of indication of that >> well, our categories, talk a minute about the categories that we play in the handbags, small leather goods, footwear, those categories have proven to be durable over time through downturns, even through covid,

because they fulfill a functional need for consumers but also an emotional connection to these categories. again, over time it's proven durable. even the research that we show that we've fielded recently shows the consumer has a higher intent to spend in the next 12 months so these categories are very durable we have much better capabilities at engaging consumers in these categories if you thinkabout the market overall, european traditional luxury have taken prices up. our products represent tremendous value in the marketplace. we see plenty of white space that we can take our prices up in fact we've proven pricing power across all of our brands in the last few years and we expect that to continue. >> so no signs of a slowdown it sounds like. >> no. >> in consumer spending in the u.s. what about in china where coach is big that's been a problem, hasn't it >> we've been in china for over 20 years, as you know, sara,

with the coach brand the one thing that has been consistent throughout that time is the resilience of the chinese consumer as you touched on, we expect over our growth plan, we expect to drive growth in every region. we see continuing growth in north america and continuing growth in china. again in china we've also fielded research that shows that that consumer has a high affinity for our categories and high intent to spend in the coming 12 months in the category our brands are also well positioned so that consumer engages with our brands our brands have some of the highest positioning in their categories in china, and our brands target that large and growing middle class so we see a lot of runway ahead in china. >> so opportunity despite the shutdowns. finally we've seen this issue with retailers, inventories are bloated because they're so out of whack with covid.

how is that impacting you? >> our teams have done a phenomenal job navigating through all of the shocks in the system over the last two years we have the proven ability and agility to meet what we see as growing demand for our brands. we've had shocks to the system where demand shut down and we were able to navigate through that and shocks where we had more demand than expected and we were able to deliver and drive growth over the last two years we have a proven model and we continue to leverage that model to deliver. i have confidence that we'll be able to navigate we feel really great about our inventory position, particularly this year and as we go into holiday. >> thank you for coming by and sharing the story with us in person for investor day. >> thank you, sara. let's check in on the markets right now. the rally is going strong here, capping off an up week on a strong note. up more than 400 points on the dow. 1.7 on the s&p the nasdaq is the real winner, 2.2% higher, more than 4% higher

on the week. you're seeing strength in names like microsoft, apple, amazon, tesla, meta, google, all the heavyweights kroger is one of the top performers after reporting better-than-expected earnings and guidance up next, the ceo rodney mcmullen on that big beat and what is driving the increase in margins. check out some of today's top search tickers 1 10-year treasury takes the stop spot it's selling off a little bit today. that is not hurting tech because it's not extreme, 3.32 on the 10-year. tesla, s&p 500, apple and docusign having a 10% up day after a good quarter rounding out the list we'll be right back. my dad was . he used to do side jobs installing windows,

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take a look at shares of kroger, soaring today, up more than 7% after the grocery chain reported earnings that beat on the top and bottom lines with strong sales leading the company to raise its full year guidance.

joining me now is kroger's ceo, rodney mcmullen. welcome back nice to see you. >> nice to see you, sara. >> so what drove the gains that came in better than expected and gave you the confidence to lift the outlook? >> it's really solid performance across the whole company every division was strong. we continue to connect better with the customer. it's really the whole package of offerings that we do great everyday price, great promotional price, incredible rewards and a way to do that in a seamless way where a customer can shop online, delivery, or just shop in a store so it's really all those things together just so proud of the whole kroger team and what they're getting done. >> i did notice the 10.2% rise in the r brands, the private label brands what does it say overall about how the consumer is doing right now? >> if you look across the customer base, it's really different customers are reacting

differently. customers that are really trying to stretch their budget are aggressively looking for ways to do that. if you look at our coupon downloads, we had downloaded 750 million coupons. customers moved to our brands. what we find is when customers move to our brands, they love it and continue to stick with our brands the other thing that our team has done a nice job on is introducing a lot of product innovation in our brands and that's also showing up in the north of 10% growth as well. >> so what is it, recessionary type behavior? is it because of the inflation how would you characterize what you're seeing from the consumer ove overall? >> it's a great question we're actually seeing a little of both. customers that are really on a budget, they're telling us they're adjusting what they're doing. they're adjusting what they're doing outside of the grocery store. they're cooking more at home because it allows them to have a

meal they want and from a healthy standpoint to be able to manage it to their preferences. customers that aren't even feeling any type of recession, they are a little concerned, so they are making sure that they're stretching their budget and cooking more at home so it's a great question it's something that we look at every single week. i would say that people are nervous, but they're still managing through higher inflation managing through the economy as well. >> well, they're clearly prioritizing food, as we all have to, it's such a basic staple and that's where the household spending is going, rodney what's happening with food inflation? are they paying more is that continuing to rise even as overall inflation may be coming down? >> if you look at inflation, certainly during the second quarter it continued to increase as we look through to the balance of the year, we will be starting to cycle some higher inflation a year ago, so we

would expect a little bit more modif modification, a little slower inflation the balance of the year if you look at some of the raw materials in terms of corn, different grains, the inflation there is starting to come down a little bit so we expect to still have inflation but a little bit more manageable through the balance of the year. >> what's happening on pricing from the food manufacturers? because they continue to talk about price increases, household products, price increases. are they just trying to protect their margins and take advantage or are the costs really not coming down? >> they're really trying to manage their margin. it's one of the things that we feel so incredibly important to have such a strong our brands. if the consumer product companies pass along costs more than what the real economic costs are, our brand always gains share. if you look right now in many

categories, our brand is gaining share so it's a fine balance they're certainly dealing with some inflationary pressures and passing that along, but it also allows our brands to have an opportunity to gain some share as well. >> you also sell fuel, which i don't know if a lot of people realize. how much did that help the quarter and what sort of trends are you seeing with that as energy prices have been so volatile >> if you look at our fuel margins in the second quarter, they were stronger than we expected basically the higher fuel profits were offset by the highigh er lifo charge that we had we would expect fuel margins to be a little lower than last year if you look at gallons, there was a small decline in gallons our market share in gallons continue to increase and our fuel rewards program, we had over 600,000 incremental customers engage in our fuel

rewards. significantly higher percentage of our customers redeemed rewards as well. so our fuel rewards is something that's incredibly important. when we look at the cost of the fuel rewards that shows up in our supermarket business as opposed to our fuel margins so you have to look at both of those together. >> it's telling that everyone is signing up for those savings rodney, you're such a major employer in this country, i wanted to get your read on what's happening in the labor market does it feel as tight as it was, and are wages do you think continuing to rise what are you experiencing on that front >> if you look in terms of the number of applicants that we're seeing, we did have an increase in the number of applications during the second quarter. if you look at our turnover during the quarter, we also saw declines in turnover as well now, we've continued to aggressively increase average hourly rate. our average hourly rate now is north of $17 if you include benefits, it

would be north of $22 per hour and we continue to manage costs and reduce costs where we can to invest it in associates because we think it's really important it was great to see the decline in turnover during the quarter as well. >> good color. rodney, thank you so much for taking the time on a busy day. appreciate it. rodney mcmullen, ceo of kroger the stock is up 7%, more than 14% for the year. up next, the two stocks he thinks are ready to take off the dow is up 415. we'll be right back.

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project roomkey supportive hotel units... and intensive mental health and addiction treatment. in short, 27 means getting people off the streets and into housing. yes on 27. evercorp isi hosting a conference with more than 30 companies from the internet sector joining us is mark mahaney as we watch the nasdaq up 2.2% and more than 4% higher, mark. your takeaway from the conference, two names that really stood out to you. what would you tell investors? >> uber and spotify. first, sara, it was nice to be back in new york at one of these conferences seeing real investors in real person but the companies -- it was almost 40 companies we hosted. i thought uber and spotify were interesting. uber, we had the head of their

ride-sharing business. there's something really interesting being rolled out called upfront pricing it's a supply challenge business right now. drivers are given upfront pricing and told how much the fares are and where the rides are going to i think that will increase driver satisfaction. you've got to get more drivers and i think this can move the needle for them. spotify, this is an inflection story. i know i said that a year ago -- >> you knew i'd reminding you. >> yes but going into '23 i think you get gross margin expansion for the first time ever for this name for a variety of different reasons. i think they're reaching scale and starting to get a lot of advertising revenue from artists and labels that helps and moving off the heavy investment phase they have been putting into podcasting all of that comes together starting next year and they have had a user acceleration this year that can convert into paid s sub acceleration next year

you want to be long spotify before that happens, and that's now. >> so i could go a lot of places, but i guess the thread there in terms of the pushback on both of them would be a recessionary environment with mobility with uber and with the ad spending with spotify, especially that the large part of your thesis on spotify is that it's going to be almost a quarter of revenues. >> yeah, the pushback is right the good or the bad. the good for spotify is unlike all those video streaming services, you only sign up for one music streaming service. even in a tough recession, you may cut your video streaming package from four to three to two video streaming companies but you're probably going to keep that music streaming package at 10 bucks a month so that part of the business is probably reasonably recession resilient. the ad business is only 15% of total revenue. that won't be recessionary resilient, but it's smaller so that's your hedge there.

and on uber, so far we haven't seen any signs -- people still have to be mobile and get to work, get to the airport, et cetera you know, in many ways in some markets in new york, uber is expensive. in a lot of other markets, it's very comparable to taxis and generally considered safer and more convenient for a variety of different reasons. i think that part of the business can hold up the issue is the delivery business that's what i'm most concerned about for uber next year. >> both price targets are double the price of where the stocks are right now. your target for uber at 75 and spotify at 230 we've got to leave it there. thanks for the quick takeaways from your conference. >> thank you, sara. take a look at where we stand in the markets right now we're holding on to gains and building a little bit. up 423 on the dow. s&p up 1.6%. every sector is stronger energy is in the lead, up almost 3% communication services, technology and consumer discretionary right behind it with some of the big cap tech

especially shining today, like apple, microsoft and amazon. roblox announcing plans to get into the ad business coming up, we'll discuss whether that will help jumpstart sales growth the market likes it. it's up 8% bitcoin rallying past the key 20,000 support level don't miss much more on that deal and the outlook for crypto during tonight's cnbc special, "crypto night in america," 6:00 p.m. eastern right here on cnbc. we'll be right back.

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check out today's stealth mover. it is virgin galactic, sitting out the rally falling down to

earth. bernstein downgrading the space tourism company to underperform from market perform, cutting its price target on the stock to $4 from $7. the analyst there saying a pattern of flight delays and concerns about possibly needing to raise more cash, adding we now have less confidence in the success of this business the stock is not too far off the lows remember, this was a stock that was above $55 a share just last year it's about $6 right now. up next, a top strategist who is skeptical of this week's market rally find out his top two short ideas straight ahead cyber stocks soaring and a big day for caterpillar and 3m when we take you inside the market zo wh neitthe dow surging, it's up more than 430 points.

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we are in the "closing bell" market zone. welcome, everyone. mike santoli is here to break down these crucial moments of the trading day as always. plus we've got seema mody on industrials and jim la camp on the market rally we'll kick it off right there. we are looking at session highs right now. look at the nasdaq, it is really zooming forward, up more than 2.2% nasdaq 100 up 2.3% the dow at 442 points higher mike, is this the market fighting the fed again >> you know, it's the market at least expressing that it believes it's in tune with where the fed has to go. there's definitely an element in here of expectation that inflation is going to become friendlier and give the fed a little bit of maneuvering room next week perhaps when we get the cpi data i don't think it's fighting the fed. all this hawkish talk we got

this week didn't sound particularly new another element of it, you mentioned the dollar coming in, yields have not raced to new highs, that's helped out and the big companies that are out there talking at the investment conferences, there's been no real scary message i don't feel as if you had a reason to believe fundamentally that this week was treacherous as we already did unwind after the rally that was off the june lows. >> i want to zero in on industrials which are getting a boost today. the sector is up 1.5%. big gains from caterpillar and 3m caterpillar reached an agreement with the irs to resolve a multi-year tax dispute ubs upgrading 3m from hold to sell, hiking its price target to $126 from $118 seema mody covers the sector how significant is the caterpillar lawsuit and the overall strength in the sector >> well, the lawsuit, sara, is significant. there is no penalty payments and that was the fear on wall

street the company saying it can avoid the cost and burdens of further disputes with the irs so that's fueling shares of caterpillar up 3% another stock getting some love is 3m after ubs upgraded the stock to neutral the analyst there, chris snyder, has been relatively downbeat on the stock ahead of this report saying that litigation liability tied to the defective ear plug lawsuit is priced in the stock is trading lower after the judge ruled it can't put the specific business into bankruptcy which could have shielded 3m from litigation. the stock is down 16% over the last month it's been a key laggard compared to the industrial sector, which is down about 1% in that same time period, sara. >> down about 10% year to date, seema. what are you hearing from some of these big companies they're as cyclical as you can get. what kind of commentary are we hearing from them about a slowdown around the world? >> well, during the earnings

season it was a mixed picture from the industrial ceos ge's ceo talking about how supply chain concerns could start to ease. that was a similar message but caterpillar's ceo telling jim cramer on "squawk on the street" a couple of weeks ago, he could not forecast when supply issues would calm down. so a mixed commentary as to when the picture will improve the question is whether next quarter we could get that clarity. >> yeah, we'll wait for some updated comments here. thank you, seema mode owe. roblox shares are rallying after announcing plans to diversify from in-app purchases by debuting advertising, joining the club with netflix and everyone else who wants to make more money these days. >> any business that's in the game of attracting eyeballs tends towards advertising. amazon made it a big business. apple which for a long time

didn't want to make it that much of a game has done so. when it comes to roblox, it's sensible they'll probably do it in a new way. a new revenue source is seen as a net positive overall a big retrenchment in the valuation of this company. it's down 65% or so from the highs. still some question at what we're looking at in terms of long-term profitability. it's all about bookings, not about real earnings. we'll see what fruit it bears but it's just about how it can be monetized over time. >> roblox ceo will join "squawk box" at 8:30 eastern time. zscaler surging, the best day since december 2020 after topping estimates in the latest quarter and giving up peak guidance total revenue for the fourth quarter up more than 60%

jay chattery talked demand today on cnbc earlier. listen. >> in today's tight environment, budgets are tight but businesses still need to go on so they need to be able to make sure the security and connectivity to application happens and cyber must happen at the same time zscaler provides all three >> zscaler giving its peers a pop too. the cibr, cybersecurity etf, take a look. up 4% for its best week since june clearly an area of strength that sometimes investors have to be reminded of how this sector is in a secular growth phase when these earnings come out. >> right within software applications, a lot of the stuff, especially back in the boom times of early 2021 got lumped into a saas company or cloud company still i look back at a

price-to-sales valuation ratio for zscaler and it's given up the big bubbly premium but it's back to where it was before the pandemic so i don't think that it's necessarily like it's been completely abandoned, more just ration aisle alized and maybe n done in the short term but it's tough to pick among all these names which are down 50, 60, 70%. >> they're not necessarily bellwethers. what's happening overall to tech earnings expectations? >> they're definitely on the downslope but moderately so. semis has been the area where you've seen the most dramatic downscaling of earnings forecasts. we know the big companies have essentially got it down. aside from that, i think it's mostly about foreign exchange, mostly about trimming estimates of enterprise services, software type spending. it's not been falling apart but it's so concentrated the apples and microsofts really

do have a huge role in bolstering tech earnings and they have been stable aside from the foreign exchange trimming. >> number of the day, $31.2 billion. that's how much left european equity funds during the first eight months of the year it's the most since brexit this comes as european recession fears grow jim la camp, senior portfolio management director at morgan stanley joins us now jim, not going into europe for investment any time soon >> it falds almost every test you can give it. first of all, europe fails the sixth grader test. look at the chart and tell me whether it's going up or going down it's been trading down the second test, what is the central bank doing the central bank in europe despite a very obvious move towards recession in europe is very, very aggressively hiking interest rates over there. the biggest problem, though,

isn't either one of those. the biggest problem is what's going on with energy there european countries are facing a 2 to 700% increase in energy costs. they're already having to shut down businesses, whether it's steel factories, whether it's aluminum, fertilizer companies, and they're really worried they're not going to be able to heat homes during the winter these companies are going to stimulate to try to offset these costs, but that might be inflationary as well, as we've seen a lot of the stimulus around the world has been inflationary so they have a real serious problem over there no pro growth policies, an aggressive central bank and runaway winter heating costs that aren't really changing. putin hasn't saufb softened his rhetoric at all and has suggested they're going to have a very, very difficult winter.

so this is not an area where i would want to be. >> but it's already down 20% from the highs and the euro has collapsed below parity to the dollar what i'm wondering, is there anything that you just said that investors don't already know, or are you just saying it's mispriced? >> it's a very good question you could say that about any market in the world. we haven't seen any sign that any of the central banks are ready to have weak knees or to buckle here. whereas over the last 20 years they always have in this case you still have interest rates that are negative, meaning real interest rates that are egative, meanin the inflation rateover there and over here for that matter is still much higher than interest rates. that creates a major, major problem for those central banks. so i don't think we're going to see the knees buckle on these central bankers until at least you see real interest rates turn positive if you listen to the rhetoric and look at where inflation is,

it looks like we're a long ways away are we in the eighth inning or ninth inning i think probably six or seven. a lot of the move has been made. i just don't see any signs of a major bottom yet or major policies being implemented that would suggest that we're going to have a bottom. >> so what do you do about u.s. stocks in this environment, this dire environment that you just paintinged >> look, normally i'm an optimistic guy the bottom line is the u.s. is probably still the prettiest horse in the glue factory, which means i don't really think that we're done yet i think we have more of a bottoming process to go through, but i'd still rather be here i think that's why you're seeing the dollar rally so much as well our countries are doing -- our companies are doing much better than their global counterparts they're going to be negatively impacted by a strong dollar.

on the other hand it does mean money flows into the u.s as you mentioned, money is flowing out of europe. so what do investors do? i think they be patient and wait to see some signs of a bottom in the market all we're seeing right now is a lot of volatility. these rallies have had major short components to them so you can't trust them. the last time i was on, let's talk a bear market rally to me and it still does. investors just be patient. we're entering that time frame of year, sara, late october through april that the market does tend to do better but september and early october historically have been very choppy, very volatile and i don't think we're done yet haven't seen the washout, haven't seen the spike in the vix, just haven't really seen enough signs of a bear market bottom yet. >> jim lacamp, thank you for joining us not your typical cheery self on the markets.

mike, what do you think about that last comment that we haven't seen the washout, we haven't seen the spike in the vix, we haven't seen the lows taken out from june. do you buy that? >> at the lows in june there were enough indicators that we were very, very washed out and people had basically spent five months purging their exposure to most risk. so we didn't see any textbook sequence that so many people were looking for based on v bottoms of the past in terms of volatility spiking and things like that. i don't think it always lines up in the exact way, especially when people spent months backing away from the market they don't need to hedge on a short-term basis in a way that would necessarily drive the vix higher. >> it looks like we're going out near the highs of the day. we've got less than two minutes to go. what do you see in the internals? >> strong, more than 90% volume to the upside, just about 90%. that's often a tell of kind of a one-way action kind of day

some significance perhaps in that although we have had a couple of 90% down days as well. take a look at oil over two years. we get a little bounce today and the level it's bouncing off of is basically the highs from 2021, right there in the mid-80s. so trying to protect itself from going below that range, at least for now. there is a short-term downturn it has to fight off. the volatility index is coming in not particularly hard given the strength of the overall market we're down in the 22s. we do have that cpi and the fed meeting in ten days or so so that's going to keep it a little higher than otherwise. >> as we head into the close, take a look at the dow it is up about 400 points right now. what's contributing the most caterpillar. seema mentioned a lawsuit that's helping. microsoft adding sales force, a lot of winners, united health and travelers are the worst performers on the dow. every sector hire on the s&p

500. energy the strongest along with technology, staples, financials, everyone is having a good day and a good week. the nasdaq up 2.2% right now we broke a three-week losing streak and this is our best week for the s&p 500 since the end of july, which is the last time we were in that upswing in the market that's it for me on "closing bell." have a great weekend, everyone i'll send it into "overtime" with scott wapner. all right, sara, thanks very much welcome, everybody, to this friday edition of "overtime. i'm scott wapner you just heard the bells we are just getting started here from post 9. in just a little bit i'll speak to mark newton on whether this latest rally can keep going next week even as another critical read on inflation looms especially large we begin with our talk of the tape the risk/reward on stocks. is it improving just as one big name investor calls for a coming crash? let's ask li