31 per month they're seeing strong demand dave calhoun did say they're experiencing supply chain challenges as you take a look at shares of boeing, keep in mind, they have not delivered a max to china since march of 2019. brian, they want to continue delivering to china, but it's not going to happen any time soon and at some point it makes sense to move some of those 737 maxes that have been parked. >> thank you very much appreciate it. we are well out of time. we'll see you next week. "power lunch" starts now ♪ welcome to power lunch here's what's ahead. stock slide as investors grow concerned of the health of the global economy amid the warnings there are new opportunities emerging, especially in the fixed income market. we'll explore why bonds might be a credible alternative to stocks

right now. economists are forecasting more than 3.5% growth in the third quarter. we'll find out what he sees that makes him so optimistic. first to tyler and a check on the markets. >> thank you very much and welcome, everybody fedex's big profit warning dragging down stocks the major average is on pace for weekly losses. there you see them, i can't see them, but you can see them they're all in the red fedex on track for its worst day ever after warning of a $500 million revenue miss. half a billion the ceo telling jim cramer he sees a worldwide recession coming the stock is the worst performer on the s&p 500 and that is pushing the do jones transportation index now to a 52-week low and pressuring shares of ups and epo logistics. the bond market, the yield on the two year, hitting 3.9% rick santelli has more on those

moves in the bond market rick >> yes, tyler. we've seen an aggressive week, essentially those short maturities they're up on the week over 30 basis points in the intermediate part of the curve, we see that the prices have moved. twos, fives, sevens are all in the green. even though it's been a big week, that's important now if you look at a june 1st of tens, i've been on this in a big way, we still have not closed above that mid-june 3.48% high yield close. we've had the last two days intraday trade above it which underscores there's a lot of investors looking at the global condition economically and deciding that they like buying some of these long-dated treasuries let's think foreign exchange if you think there's a global

recession coming, the currency markets agree with you let's look at a 22-year chart of the index. it's not on the high, but look at how strong it's been. let's look at the pound versus the dollar which on its lows, lowest since '85 here's a 38-year chart of the pound versus the dollar. 25-year chart of the dollar versus the yen, a 20-year chart of the euro versus the dollar. the stronger the dollar is, the more expensive it is to service debt, the more pressure on emerging markets all roads for capital lead out of those countries, most likely into the u.s tyler, back to you >> who even knew we had charts going back 38 years. rick santelli, thank you very much. it is not just treasury yields that are rising investment-grade bonds yielding above 4% now and since the summer, many states have issued new munis can yields above the 4% mark

this week, if you really want to go for it, my advice is to sell stocks and buy opportunistic bonds. it was brutal to be a bond investor for the past several years but now it's actually the place to be he says. our next guest agrees and says buyers of investment-grade bonds will be very happy 12 months from now chief fixed income strategist are montgomery stock for the first time in a long time, bonds look like not just a place to put some cash, but really investable. >> it really is remarkable the year has been absolutely brutal for fixed income investors with interest rates rising and the worst returns certainly since bond indices were invented. possibly by some metrics, worst returns since the washington administration believe it or not. bond sell-offs to some degree are self-limiting because at some point interest rates, move

high enough that there's enough appeal, even if they move higher, of the no more generation capacity is substantial. and portfolios of 1 to 10 years of a short term, investment-grade corporates right now are seeing yields above 4.5% and i can't recall a time in the last decade, aside from maybe a week or two of crisis periods, where we were anywhere near that level >> and then let's look at munis, what's been going on there we said yields above 4% on munis. boy, that is a nice way to make some tax-free cash. >> absolutely. and for individual investors, including the one that is we support here, munis are a massive portion of their overall fixed income asset allocation. historical stability, the tax exception being of course the biggest one. last spring in addition to rising interest rates, we also had some very acute weakness in the muni markets

this time around over the course of the last month or two months or so, base interest rates, treshy yields and other safe haven assets have been rising, but the muni markets have been a lot better behaved and it makes the sell-off a little bit more buyable. but the reality is for longer-term bonds, higher quality, even government bonds, again, i think 12 months from now you're going to be happy with buying around these levels. >> do you think that yields are near their peak? >> well, it's very hard to say, of course. i think they're a lot closer to their peak than their trough, that's obvious but i would wait for a couple of signals to be more confident of that number one is perhaps the most obvious, a few months of slowing or at least plateauing core inflation figures. we have yet to see that. but the odds are skewed at this point that yields are lower than they are today. >> so really i think for people who need a little bit of a

refresher course as i do with bonds, you have to remember, really what you're saying here is that if i started to tiptoe into bonds, any increase in interest rates from here might not be so drastic and dramatic as to wipe out, in total return loss, the yield that i would be getting from buying at a 4.5% yield on an investment-grade correspondent, right >> absolutely. we talk about that in the fixed income markets as breakevens how much do yields or relative spreads between one bond and another have to move before you wipe out 100% of the income. and when interest rates are starting at, say, 1%, that break even is very, very narrow. but as portfolios of investment-grade correspondent bonds in the 4.5% raunge, theres a cushion. interest rates would have to move significantly higher that be they moved before it becomes

a big problem. >> i hope you moonlight as a professor. that was a great explanation thank you. >> thank you economists are beginning to lower their growth forecast following the recent weaker economic data. but not our next guest who is calling for 3.6% economic growth in the third quarter, thanks to the strong consumer. joining me now is steven stanley, chief economist boy, i wonder what that introduction whether you sometimes feel like a voice crying in the wilderness right now, steven? >> i have to admit i just didn't realize how low some of the other forecasts have gotten i'm optimistic about the third quarter. >> tell me what you're looking at that makes you have such a rosy outlook >> i would point to a few things firstly, as you mentioned, the consumer, i think this summer was the first time that people have really been able to get out there and do the sorts of things that were restricted during the pandemic we know that travel was crazy over the summer. all the crowded airports and

things like that i think there's a lot of spending that we'll see in the third quarter. a second thing that we're seeing i think is the unwinding of some of the snafus in the trade situation. the first half of the years, good imports spiked and i think what that was, it was the kind of all the stuff that had been ordered in 2020 and 2021 that didn't get delivered as some of the logistic problems were unwound, i think those came in in the first half of 2022 and so the trade deficit widened dramatically in the first half of the year, particularly in the first quarter. it was the main reason why we saw just a negative number in the first quarter. it looks like that's reversed. imports are getting back to including close to normal in terms of levels and that means that trade is going to be a big boost to growth in the third quarter. maybe as much as 2 percentage points another big drag has been the government sector. it's been negative in the first half of the year it feels like the government sector should turn around. i think the federal government is going to be spending a little

more on defense spending given what's going on in ukraine state and local governments should start to see more activity around the infrastructure bill that was passed last year so all three of those things combined and i end up with a gdp forecast above 3%. >> how do you collate what we heard from fedex, what we hear from general electric about supply chain snags still disrupting their delivery to customers? how does that coincide with the way you think the strength of the american consumer is going >> yeah, we're still definitely not back to normal in terms of -- in terms of the supply chains that's going to be an ongoing issue. it is getting better, it feels like but it's not all the way back to where we would like it to be in terms of the consumer, it's important to remember that we're seeing a kind of reversion to mean, if you will, in consumer preferences. during the pandemic, a lot of services were not available to consumers and so they concentrated on goods and that's

been a well-documented conversation and i think we've seen kind of the reversal of that and so i think -- fedex is certainly one element of that as people are a little bit less interested in goods and maybe more interested in services going forward, they're going -- there's a shift in the composition. it doesn't necessarily mean that the consumer is weakening dramatically, but the composition is returning to something closer to the prepandemic norm. >> but we are starting to see a lot of ceos talking about slowdowns in their business, fedex just last night, we're going to hear from a container board ceo shortly here interest rates seem to be going on rather dramatically housing seems to be coming off the boil there are an awful lot of things that are counterveiling sp influences to what you described. >> absolutely. and independent add, i'm negative on housing in the near term too you're going to see a big drop in housing activity in the third

quarter just as we did in the second certainly not ignoring that. i think in terms of the fedex thing too, i would point out -- a couple things i would point out. firstly, fedex is a global company and i think there's no question that europe and some other parts of the world are probably dealing with more acute downward pressure to their economies right now than the u.s. might be. and the second point is that, hey, look the fed is trying to slow things down we had extraordinarily strong growth, the economy was overheating last year. this is all part of the process of trying to moderate things and bring the economy into better balance. >> there's been a lot of pushback this week on this idea that cpi is a lagging indicator and that, in fact, the fed is too late to act and is looking at -- we heard it earlier, the economy breaking i'm just curious, do you think that inflation is still a significant risk and where do you put the risk of recession at this point >> yeah, i do think we're

probably going to end up seeing a recession, but i think it's going to come much later i think it's more likely to be late next year or even in 2024 rather than in the near term fed policy is normalizing. it's not as easy as it was, but it's probably -- even now, still not really that tight. although, it feels like we're going to have to get there to get inflation down i would continue to pay a lot of attention to the labor market. and it just doesn't look to me like the labor market has cooled off much yet while we are seeing some moderation, it does feel like there's a little bit of slowing in the demand in the labor market it's still pretty hot. the unemployment rate is still well below 4%. the fed has more work to do to get the economy back into better balance. >> all right, thank you for sharing your bold views. steven stanley all right. coming up, finding opportunity in energy. the best-performing sector this year, what to look for and what to stay away from. plus shares of international

paper falling sharply on a down grade to tell. we'll talk to the analyst behind the call and meta's market cap now below 400 billion. a sharp decline from its one-time trillion dollar valuation. we'll trade that one and two others in three-stock lunch. you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence.

welcome back to "power lunch," everybody. some market bright spots the homebuilders are trading higher today up more than 1% in a down market we're also seeing a move higher in consumer names like dollar general, clorox, auto zone, j&j. how can investors find long-term opportunity. megan is executive vice president and head of investment strategy at wilmington trust welcome. good to have you with us >> thanks for having me. >> i want to go back to our first segment where our guests said that if you buy fixed income now, specifically i think he was referring to high-grade corporate bonds, in 12 months time, you're going to feel pretty, pretty, pretty good. you say underweight fixed income explain why. >> yeah, so we have held an underweight to fixed income for the better part of this year

we've chosen to hold our defensive positioning in cash instead and i think that's broadly been the right move as we've seen interest rates move up i do think looking forward over a 12-month investment horizon from these yield levels, even if you see rates move, let's say the ten-year moves 25 basis points higher, for a diversified high-quality fixed income allocation, you're still going to be clipping a total return that's positive. that's very, very different from the backdrop where we started the year, sub 2% yields. it's looking better. but it's been a really, really tough environment for that diversified investor looking for bonds to offset the volatility that we've been feeling in stocks it's not worked. going forward, we think it will work better and we're waiting for that right time to add to our fixed income, most likely from cash. >> i'm glad you clarified that you're exactly right if you had been -- he could say the same if you've been in bonds this year, it has been a bloodbath.

it has not been a pleasant place to be and one should have put that defensive capital in cash now i'm hearing you say, we're inching toward that point where investment-grade fixed income may be more attractive do i have you right, megan >> well, we've used that cash as an optionality and i think honestly, if the market continues like this, we're going to have a lot more attractive options on the fixed income and equity side but the pain that investors who have felt -- we talk to a lot of clients who have been floored by what they're seeing in their statements mostly because of the -- you know, the lack offoff set coming from bonds. and we're really urging them not to give up on bonds. but to hold a little bit less than we would in a full kind of strategic allocation. >> are there particular sectors

that you think will hold up better given the economic weakness that seems generally to be predicted and especially on a global front >> the sectors that are going to hold up better in a period of economic weakness are clearly the defensives, consumer staples, utilities, maybe even real estate demanding on the pact that you're looking in. but the problem is that valuations for defensives have gotten very expensive and there might be a little bit more room to run there, but if you look at the historical relationship between valuations for cyclicals versus defensives, it's trading very low relative to history we've got a lot of pessimism priced into that part of the market i would actually look not necessarily towards cyclicals which might be financials and we have a slight overweight to energy, but other parts of the market, maybe more value oriented that are tied to the health of the economy, instead start to eye the pockets of

secular growth which have really taken it on the chin we've seen that in the nasdaq as rates have moved higher and we don't see rates moving materially higher from here. so i think we're going to get -- as soon as we find what that ceiling is on the rate market, which i think we're probably close to that peak hawkishness from the fed, then that might become a more attractive opportunity for a long-term investor to get involved in that secular growth. >> one of the things that you mentioned and a lot of guests this week have talked about are discount off-price retail, warehouse retail, home improvement. why is that so appealing to so many right now >> well, i think if you're looking at the risks out there, and, again, what i said about valuations already pricing in so much in terms of favorability for defensive parts of the market, we're fairly neutral across sectors, but we're trying to find pockets that might hold up better as you originally

asked. within retail, if you're thinking about off price or discount or even warehouse, those are places where you can see bottom-end consumers by income and higher-income consumers come to the middle and meet and support demand, especially if we start to see import prices and consumer price inflation start to decline we think thatwill hold up. and the housing market is interesting. we're going to get a slew of housing data next week in terms of homebuilder optimism, as well as new and existing home sales but we expect continued softening there with a mortgage rate north of 6.25%. in that environment, you might expect people to focus more on updating what they already have. so that would speak to home improvement holding up relatively well. >> we look forward to that slew of data. megan, have a great weekend. >> thank you, you too. just ahead, supply strain. general electric warning that supply chain pressures could

delay orders what's that mean for the stock a paper cut. jeffries downgrading international paper saying cardboard box demand is slipping and that could signal a weakening economy. and as we head to another break, a look at the stock of the day, fedex cutting its sales forecast by half a billion dollars. the ceo says he expects a worldwide recession. we will beig bk. rhtac

welcome back to "power lunch. the packaging companies like international paper and packaging corp. are getting hit by a double whammy a downgrade at jeffries, that analyst cites slowing demand for container board which is viewed as a proxy for the economy joining us now is the analyst behind the call. phillip, welcome, good to have you with us. >> thanks for having me today. >> you're downgrading both of these ip and pkg to underperform i assume that's because you see a slowing economy, number one, and number two, basically an idea that they have a lot of inventory that they bought that they've got to work through, right? or that they sold, rather.

that's out there >> sure. it's all that, right i think it shouldn't be a surprise we got some pretty clear demand singles with major import collapsing the last couple of months orders were really strong up until june started to weaken and it's been really soft since july and there's just a massive amount of inventory and they're trying to work through that. and some of the smaller players who are cutting a market do not have that avenue because there's so much inventory in the channel right now. as you kind of pointed out, tyler, container board, cardboard boxes is a pretty good proxy for the economy. you've seen retailers like walmart and target reset expectations a number of times right now. >> should investors should expect a dividend cut here >> no. certainly ip went through that

the last cycle but i think the balance sheet for all the big public container board producers have pretty healthy balance sheets we do not expect a dividend cut. >> so how close a proxy for the economy are these companies? are they really just directly correlated or what >> the correlation is pretty high if you look at the end markets, it's going to be pretty spread out. you have staples, food, beverage, you can go to grocery store. you'll see produce in the box. your wife shops at amazon, right? it's a pretty good -- >> never >> it's a pretty good indicator for the economy and certainly got some durable good exposure when you saw walmart and target cut back and earlier this week, the container board guys felt it and we're seeing that dynamic accelerate in recent months. >> a box a day keeps the gremlins away. >> and what about, phillip, the

export market? is that just collapsing as well? >> it's a great question what was shocking to me was when we did reach out to some of our contacts who are big in the export market, the message was the same the market was really tight up until june, july and everything has grinded to a halt that option is not really available because china is really weak, right a bunch of lockdowns europe certainly a weak backdrop even mexico. the export markets are squishy right now. we think it's pretty good read for the global economy. >> very quickly, if demand falls, how much will pricing fall >> great question. peak to trough in past recessions, about 20%. and what makes it trickier right now, there's about 5 to 6% of capacity starting to come on as we speak weakening demand, a lot of inventory and capacity coming on

is not a good combination for any economy. >> phillip, thanks let's get to our friend brian sullivan for the news update >> thank you very much here's what is happening at this hour migrant who is were flown from florida to martha's vineyard are being moved to cape cod where they have temporary housing at a military base. the move is voluntary. u.s. diplomats are not planning to have any meetings where the russian counterparts next week. linda thomas-greenfield blamed russia's war with ukrainian. >> we will have meetings with the ukrainians there are no plans at this time to have meetings with the russians they have not indicated that they have an interest in -- in diplomacy, what they're interested in is continuing to raise this unprovoked war on ukraine. >> and, please, don't do this.

in evansville, indiana, a driver ignored barricades and drove on a row any way. he fell in a sinkhole and landed in a local gas main. the driver was okay. drove the wrong way through a b barricade into a sinkhole. >> he thought it was a guideline rather than a rule. >> thank you, my friend. ahead on "power lunch" a lot can change in the blink of the eye. stocks like blink charging are down big over the past month we'll hear from the ceo next. >> stocks taking a big hit this week we'll run through some of the key laggards awe as lls which names are in store for today's three-stock lunch.

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♪ less than 90 minutes left in the trading day. the latest on ev infrastructure with the ceo of blink charging let's begin with christina at the nasdaq talking tech stocks today. give me a sense of what's happening with the markets,

christina. >> the nasdaq continuing yesterday's trend where it was pretty much the worse among major equity indices they're bracing for rising rates, a strong u.s. dollar and the expiration of many futures and options trading. that's adding to the volatility. investors are rethinking their expectations but apple is having the biggest point impact, down over 1% right now. even as the latest iphones hit stores today but when you drive into the equal-weighted nasdaq 100, it's the software names all trending lower. the bug cybersecurity etf had its worst close yesterday thanks to the plunge. it's down 4% today so we're seeing that continue its trend. and then you've got the pillars of technology, let's talk about the other players, the sky cloudy etf or the one representing semiconductors, down over 6% or more this week

alone. nvidia, intel trying to stay in the green. intel above 1% but they're still just 2% off their 52-week lows texas instruments is trending higher today on a dividend increase and a $15 billion buyback program. and because we're ending on a positive, netflix is on its third positive day in a row. i said positive, but still down over 60% on the year, on base to break a seven-year win streak. i wanted to end with good, but i ended with bad. >> you have to start with the bad first so you can end -- >> it's like ripping the band-aid off. >> thank you. there's a lot of action in the bond market today. the two-year yield is hitting its highest level in nearly 15 years and getting very close to 4% now and that ten and 30-year yields are relatively fatlat.

and, of course, oil has always had a busy week. it's rising flightily today and for that story, let's go to pippa stevens. hello, pippa. >> it's been another volatile week for energy prices here and we have this constant push and pull between the demand and supply side and traders say that supply is still very tight and so it really is the demand part that is driving the price action right now with so many uncertainties around the macro conditions in the months to come let's check on prices. wti is at $85.16 with brent crude right around $91.30. both are on track for a third straight week of losses. but it is natural gas that is, once again, the biggest mover over in europe that contract sinking 11.6%. also on track for a third week of losses. in a very bleak macro view for the broader market this week,

one area that's stood out is the ev charging stocks we're talking names like charge point, beam global and wallbox president biden announced the first tranche of funding after that 7 1/2 billion dollars allocated for a national network. these stocks are responding and in the green >> thank you for that. >> and blink charging is one of those companies that stands to benefit from the big round of funding from the biden administration that stock, though, is down today double digits. it has been down double digits we have the ceo and founder of blink charging when you're watching what's happening with the stock today, do you see it as a disconnect between the reality and hopes for the future and what investors are worried about? >> our vision is a long-term

business day-to-day volatility on our stock price is not something that we really take notice we're looking at the long-term and this business is really at its infancy. when you look at the total market and where we need to be in 2030 or 2040, there's nothing but growth for the entire industry >> how much do you want to grow in the medium term what can investors in your company expect out of your growth >> it's exponential growth if you look at the actual numbers today, globally, that's the market we participate in, there's roughly a couple, a few viable charging stations deployed by 2040, you're looking at 450 million to 500 million chargers. the growth is astronomical we're going to completely change over how we transport ourselves, how we move and we're going from a gasoline environment, fossil fuel environment to renewables and electricity. >> what's the challenge for you in trying to get new charging stations up and running? is it just money or are there

regulatory headaches and, i don't know, is the whole feeling of people who are in these communities coming into play at all? >> not everybody wants to have charging stations. it depends on what kind of charging stations are needed in those specific location. that's one of the things that separates blink from all others. we have a hardware as well as a deployment methodology that works for single family homes to off-highway routes and everyone is interested in having these charging stations deployed where a couple years ago, it was a lot more difficult explaining to them exactly what they're going to be doing. in the past, people didn't have much faith in having electric mobility completely world we're living in today. a majority of people when looking at new cars are looking at either plug-in hybrids or full battery electric vehicles the type of vehicles that are being released are phenomenal. it's the digitization of the automobile and it's similar to

what, you know, we experienced as having an analog phone and having a digital phone we're now seeing the technologies applied to transportation and mobility. >> i want to come back to the stock and its activity we had a chart up there that shows, i think, the stock from the prepandemic to today if we could bring that back up it was interesting we're looking at some of the charts that indicate down movements for the day and for the month. there you see from the pandemic, march 11, 2020, your stock is higher by 800% we can focus on today and show that you're down 8%. we can focus on the week, so i guess my question -- and so this stock chart suggests the growth you're talking about, the market recognizes, okay or they wouldn't have driven the price up 810% over that time what is the moment -- what is the amnesia that has set in with

them that would cause them on a week where the president says i want to have "x" thousand of these new charging stations deployed quickly, what is the amnesia that has set in with these investors this week if you've got an idea >> unfortunately, it's not based on reality it's more based upon how people trade the stock. you know, we have about 50-some-odd million stairs outstanding and 11 million shares short on your company you're talking about artificial selling. it's not real owners of the company who say, i don't want it because it's not a great investment you have artificial selling that's taking place. and i think once the market realizes that we're here to stay, we're not going away, then 11 million shares are going to start to be bought in and we believe it will be fairly valued at this point in time, you're correct. there is am nnesia in the marketplace. especially if you compare us to our peers, we are very, very

undervalued when you look at what technology we have, our team, the amount of locations that we have, our owner, operator model and how much you can generate off those charging stations owning them versus selling the hardware when people really get an understanding of what blink does, i think things will change >> michael, i want to ask you about the big cities which is the place where to me electric vehicles make the most sense, not these long-haul drives and commutes i want to know what your idea is for people who have to park on city streets, you know, you're not going to pay the $900 for a garage in manhattan to come into the city what's your idea for how to equip our cities with electric charging stations? >> that's a great question it's not about us thinking about it, it's actually about what we've already done you can go into cities in the u.s., los angeles being one of

them, and see hundreds of charging stations of ours that are on the streets, deployed in the streets. that's how we deploy them elsewhere in the world there are people who park on the streets but there are also in these dense urban areas, people are accustomed to going into the garages and parking their cars and that's where the substantial amount of cars are parked. that's a huge market for us and that's where we've been focusing -- this month we're starting our 14th year of doing business as a charging station. that's what we focused on was dense urban areas, i do agree with you out in suburbia, people are going to charge their cars almost everyone is going to be charging at home less public charging is going to be necessary it's the dense urban areas, those markets right outside those dense urban areas where people are parking on the streets where they don't have parking facilities for them.

we're focused on that market we have a solution for it and we've already deployed charging stations in those types of locations. >> michael, it's interesting thank you for sharing that with us >> thank you for having me, again. all right. up next, materials, the worst-performing sector this week, even underperforming tech. we'll take a look at some of the biggest moves next remember, you can now listen to power lunch on the go. look for us on your favorite podcast app, follow, and listen. that's not an invitation it's an order. (vo) give your business an advantage right now, >> announcer: the bond report is brought to you by pimco. with leading ultra-capacity 5g coverage. t-mobile for business has 5g that's ready right now. flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals.

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with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities. welcome back to "power lunch," everybody, time for our etf tracker this. week we focus on metal stocks which had outflows of $309 million in the past week. recession fears, a big factor, any economic weakness could hit these stocks we saw that in steel stocks. that stock down 20% this week. a bit of a market reversal as these funds gained last week

now to specific names in the materials area vanguard materials, it's down one week 7.75% and first trust materials down 11% this data coming from our partners at track insight. more information available on etf hub. check it out. now for a hard right turn or maybe a leap it's a quick programming note. nearly 30 years after the original series ran, quantum leap is back as a new series premiering monday on october 9th -- no, no, no. let me rephrase. at 10:00/9:00 central. i'm new at reading the teleprompter i don't know how to do this. on nbc streaming next day on peacock. i can't believe i'm old enough to remember the original quantum leap, but i am.

>> and it just got more time than they really were going to get. >> it was amazing. i don't call it a screw-up, i call it an opportunity for learning let's not jump too far ahead after the "power lunch. after the break, we'll have a little drink and be right back

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welcome back time for three-stock lunch we're trading some of the biggest leaders and laggards this week. among the worst performers is meta while royal caribbean and apa are set to close with solid gains. here to help us trade them is the managing director of fx strategy at bk asset management and a cnbc contributor boris, great to see you today. let's kick things off with meta, down about 13% this week >> yeah, meta reminds me of steve balmer's era the stock is cheap, trading 11 times free cash flow it has $60 billion of cash on the balance sheet.

the market hates the whole metaverse idea if they were to close reality labs and just put the back into the corporation, the stock would rally. just hold tight, eventually this is going to stumble into a strong business and there will be a catalyst. for now, it's just a cheap, good, long-term hold >> let's go forward to royal caribbean. what do you think? >> royal caribbean, royal caribbean. to me, the stock is very, very strong because of an enormous amount of pent-up demand post-covid-19. demand for cruise travel, which is a very attractive proposition for a lot of consumers because it's a one price buys all type of a travel, it's very, very strong for the company the other thing that's attractive is oil prices have moderated considerably there's operational leverage in the stock. if you believe the labor market

remains relatively tight, incomes remain steady, the travel boom in cruise travel is only going to continue for the next 12, 18 months that's why the stock is responding so positively >> the final name, apa corp, up about 4% this week >> yeah. apache interesting thing about energy all of energy has had a big decline based upon multiple compression. basically the industry itself is operating on all cylinders apache is doing well as well to me, if you believe that oil remains in this $60 to $90 band, all of those prices are attractive for them. they'll continue printing higher free cash flow trading at four times pe, 1% yield. that's got to be an attractive buy the dip situation at this point. >> boris, thank you very much for joining us >> all right still to come, general electric

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shares of general electric falling more than 10% this week. supply chain challenges once again hitting the aviation

business seema mody has that for us >> supply chain problems simply won't go away. that was the message from ge's cfo who said those issues are affecting its aviation business resulting in delayed orders. a shortage of key parts, raw materials and skilled labor. those comments were made at a morgan stanley industrials conference last night. aviation is its cash cow it makes up about 40% of sales last time i spoke with ceo larry culp he shared they implemented a duel sourcing strategy which entails using different vendors from different countries but it takes time to implement and a lot of the products are complex. the key metric wall street tracks for general electric is free cash flow carolina said the number is expected to be in line with last quarter or "slightly better. that's behind ge's sharp fall

today. now down double digits from its 52-week high >> tough to hear that. thank you very much. the dow down about 200 points off the lows. at one point it was down more than 400 as brian sullivan pointed out, it with a sqquadruple witching days it may be an interesting close >> "closing bell" starts right now. stocks are falling after fedex's red flag delivered a blow to investor sentiment but we are at the lows most important hour of trading starts now welcome to "closing bell," i'm sara eisen look at where we stand right now in the market. we are lower across the board. at the lows of the day, the dow was down 411 points. down 189 now the s&p 500 down a percent adding to a rough week so for the week overall, we're down about 5% on the s&p 500 about 5.8% for the