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 nasdaq.

there's the nasdaq it's the biggest loser of the day, down 1.25% and small caps giving back 2% the only sector positive right now, defensive group, consumer staples, a hideout during times of concern about recession check out transports coming up on today's show, jason furman on the growing recession fears. and is the u.s. the best house in a bad neighborhood or should you look for upside abroad we'll ask two experts. fedex shocking wall street last night with a surprising earnings warning the ceo saying he anticipates a worldwide recession and the stock is on pace for its worst day ever frank holland joins us with the details. frank, not pretty. >> fedex is warning dragging

stocks lower like its rival like u.p.s. raj subramaniam said, yes, when asked if we're nearing a global recession. >> asia is the center of manufacturing in the world when you see these things happen, i feel it's a leading indicator of something more profound the u.s. has been insulated because the u.s. dollar is the currency of choice for the world. there's some insulation there. i do see the u.s. slowing down, too. >> the huge eps miss is raising a lot of questions about execution issues as opposed to macro issues express, where fedex gets about half of its revenue, that was flat ground and freight were up the profit outlook for q2 about half of current stimates back in june, fedex raised its dividend by 53%.

i spoke with raj in previous weeks. they said they are cutting hours and they won't be having a hiring push this year, just a much smaller hiring effort >> what do you think, frank? what are the analysts on this stock telling you? is it more of a fedex problem? u.p.s. is down 5% in sympathy. was it just too much capacity during covid for fedex and they're giving some back or is this really a wake-up call that we're heading into a sharp global recession >> a lot of analysts i spoke to say they're flagging execution issues one thing that i pointed out, revenues were up and profit is falling. the company admitted they took cost cutting measures but they did it later in the quarter.

this holiday season, i spoke to the ceo of ship matrix, he says that he expects holiday e-commerce to only increase by 5% but companies like fedex, u.p.s., even the post office they increased their capacity by double digits. so this year he expects to see more capacity than packages. they may not have the volumes to support those decisions. >> fedex down almost 40% for the year frank holland, thank you. is the world heading for a recession? what does that mean for the fed's agenda joining us is jason furman former chairman of the council of economic advisers fedex is typically an economic barometer. they have realtime data on what everything looks like way before the fed chair, jay powell. do you think this warning ises go to make an impression inside the fed ahead of next week's

meeting? >> i do not think this will make an impression on the fed the fed is focused on one aspect of their mandate, that's getting inflation down we had a terrible report earlier this week. inflation is just not going to get down as far as they're concerned unless the labor market loosens somewhat. they're just not going to hold off in anticipation of a recession. >> but if next is right and the economy is even worse than what investors were expecting and especially in the u.s., then that should bring inflation down and it also brings in the risk that the fed will overdo it on the economic side. >> so far the fed has underdone it we just have rates at 2.5% now we're heading to a number that's far from crazy a number around the range of 4, in the 4s. i don't see how you'll get inflation under control without the fed staying at it. when they sent those mixed

signals in the july report, financial conditions loosened, that let up some it's better to do more now and if you need to relax later you can do it. >> are you in the 100 basis point camp you're sounding very hawkish >> i'm in the 200 basis points this year. of which probably 75 at the next meeting. almost certainly 75 at the next meeting. >> it's almost as important what signal they give you think they should be firm? >> absolutely. we had a dovish 75 at the last meeting. that was a mistake i frankly thought the market may have been misinterpreting the fed chair at that time regardless responsibility, th the rate could be going into the

5s next year this inflation is very stubborn, very persistent. a warning from fedex doesn't mean it's going away >> if you were on the fed, you would be among those saying that we need to speak -- they are talking tough on inflation, but signal that 4% is not going to be the max on the fed funds rate, which seems to be in the market's minds still that the fed will pause next year >> if inflation comes down, the fed will pause and should pause. my thought is the underlying inflation rate is about 4.5% if month after month we're getting prints on the pce o of 0.3, 0.4, 0.5 per month i don't think the fed can say don't worry, sure we have three prints in a row of 0.5, we'll just hold off. you can't hold off when inflation is like that that's where inflation is going

to be based on what we're seeing in labor markets today >> i feel like one question that we need to figure out is why is inflation proving stickier than the market is expecting. why was that such a surprise rent is a third of it, right those prices remain high it does appear that a lot of other forward-linking indicators including from fedex today would suggest that it should come down >> yeah. a lot of the forward looking indicators we have are for goods. goods inflation is coming down, but other things are making up for it what matters for services is wages. wages are growing at about 5.5% a year when you see wages glow -- whos

fault do you think it is you did criticize the biden plan on student debt and exacerbate inflation. do you think it's those policies, the administration's policies that are making this last longer, expand broader? do you think it's the fed's fault you to being too late? >> i think the rescue plan the administration did a year and a half ago now helped start this it's not what continued it the fed played a role in continuing it by being behind the curve. the biden administration has done some things that were helpful. i think the deficit reduction and the inflation reduction act will help a bit. i think the student loans will hurt so they've done things in different directions primarily at this point it's a

combination of bad luck and fed policy that really i think finally has gotten itself to a good place it's just going to take some time to work >> jason furman, thank you for joining us >> thank you. we are recovering, continuing to recover. the dow is down only 142 i say that because at the low of the day we were down 411 points. it's just kind of climbing back up there home depot, amgen, big contributors on the plus side. what's dragging? goldman sachs, boeing, chevron making a little late-day comeback here. it's still been a brutal week. chinese stocks getting slammed even after data there came in better-than-expected we'll talk about the state of business there and why you should be paying close attention. you're watching "closing bell" on cnbc.

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check out today's stealth mover, it's roblox, down almost 9% estimated average bookings per daily user last month fell as much as 16% from a year ago. and that news overshadowing some big jumps in august daily active users, hours engaged and estimated revenue. stocks heading for a losing week it's not just in the u.s china is having a rough stretch, and fears of a slowdown in asia were a big part of that warning from fedex the ceo telling jim cramer last night what's happening there has him worried because asia can be

a leading indicator for the global economy joining me now is the senior policy analyst at longview global and a cnbc contributor. it's hard to get a picture of what's happening in china given the rolling zero-covid tolerance policies and these lockdowns we've been seeing. what's your best sense of what's happening on the growth front? >> well, thanks for having me. i think you hit it on the head there are challenges in china certainly as we go into the end of the year. the august numbers came in better than expected, but there is still some bad news in those numbers, particularly around global demand for chinese goods, which, as you know, has been the booster for the chinese economy over the last several months those numbers down to 7.1% year over year, down from 18.1% without that growth boost from exports, i think we're in for

some real headwinds for china. we heard some announcements again this week talking about ways in which they hope to boost the economy. a lot of that was through tax incentives and tax breaks for the manufacturing sector yet again, the policy prescriptions don't seem to match the problems and the big issue we're experiencing is a real slump in chinese demand and, so, there's going to have to be a way to address zero covid and get people confident and spending again in china because i think as inflation starts to bite globally, they cannot rely on exports to really prop up the economy as we move into the end of the year >> i did note that the moderna ceo this week said that he was having discussions with the chinese government could that be a gamechanger? >> this is really interesting. china's relying a lot on its

domestic produced vaccines, which is not mrna vaccine. if something like this were to happen, certainly i think from a psychological standpoint -- i want to preface that, this could be a boost for the markets however we want to be careful here what we don't know is what will the adoption rates be in china for this foreign vaccine whether or not you would need a vaccine mandate and how will that work? then how long will it take to get the number of people that need to be vaccinated for this to be advantageous to china, how long would it take them to do that the final point is zero covid. we're aware that xi jinping is politically tied to this policy. how easy will it be to unwind this even if we get the mrna vaccine from moderna good news, but i would be very,

very cautiously optimistic that it can happen fast and happen in time enough have a rebound at the closing of the year here >> yeah. i would also note we slipped past a key level on the dollar versus the chinese yuan, 7, it shows you some of the pain you're talking about if you're a u.s. investor, international paper today, huge loser. jeffries downgraded it they cited capacity issues in container board. one of the reasons was also problems with exports from china because of the zero-covid policy if you're a u.s. investor in one of these companies, exposed on the consumer side or the production side, what do you do? >> well, unfortunately, i hate to say this, there's not much that can be done in the short-term i think we're all in a wait and see game to see just how things will happen on the backside of

the 20 -- of the congress. i think unfortunately we'll close out the year with a lot of headwinds in china and you have to bite your nails and hold on until we get into 2023 where we're hoping to see some of the policy reversals that we're seeing in the development and property sector and the tech sector these things are taking time to really have an impact. but let's hope in 2023 we'll start to see that turnaround in china. >> yeah. i know a lot of business leaders are looking past that conference to see if maybe xi changes his tune on these policies thank you very much. >> thank you very much let's give you a check on the markets. show you the s&p 500 heat map. most sectors are lower there's only one spot of green, that's consumer staples. utilities wavering up there as

well what's being hit the hardest industrials on some warnings, fedex, ge, southwest at the bottom of the list it's getting hit hard. you have some weakness in energy materials, financials, consumer discretionary, all the things tied to the economy. it's the safest place doing the best after the break, taking a hack seat. uber under pressure as the company says they're investigating a cybersecurity incident. as we head to break, check out the biggest losers of the week in the s&p 500. some shocking moves. it's a 5% down week for the s&p 500. look at some of these third names. adobe off the $20 billion deal announced yesterday. down 25% there's fedex with its warnings and cuts down 23% nucor, eastman chemical, a bunch of downgrades in the chemical sector and lowered forecasts which we'll talk about when we come back.

look at shares of uber under pressure today with a lot of tech and gig economy stocks the company earlier today say they're investigating a cybersecurity incident >> the company is still dealing with the fallout from this thing. you can only imagine the day they've had. we got a new statement from uber updating us on where things stand as of this afternoon they say there's no evidence that sensitive user data was accessed in the hack services like uber, uber eats, uber freight, uber driver are all operational. they say the internal software tools they took down earlier as a precaution, those have come back online. some progress being made inside uber to get their arms around this hack, which has been disruptive we also obtained earlier this morning a memo from uber security to uber employees they said slack was still

disabled they said zoom is available for employees to use, but they wanted everybody to keep their cameras on so they could verify the identities of the participants in all the zoom conference calls inside the company and make sure there are no impostors lurking on zoom calls with their cameras off impersonating other people you can tell the level of security they're putting in here they also said all employees can go to any uber office around the world to go to work. clearly offices are open, business is going on but this has been a disruptive day at uber. back over to you >> but it doesn't affect the customers, right >> that's right. all the apps are still open and functioning. you can get an uber. you can get from here to happy hour on a friday night without a problem. >> just wondering what it means for me eamon, thank you. up next, lisa erickson and jeff saut when "closing bell"

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nasdaq is it a buying opportunity for u.s. equities or should you be focused elsewhere? joining us now is jeff saut and lisa erickson of u.s. bank wealth management. jeff, all year long we've been hearing the u.s. is the best house in a bad neighborhood, you should stick in the u.s. because we have better growth, higher yields, we don't have an energy crisis to the extent of europe is that still the case though? >> i think that's still the case secular bull markets tend to last 15, 20 years. do you get pullbacks yes. we had at least a dozen pullbacks this year, every time we get one, the bears come out of the woodwork and tell us we're in a bear market it's just not so bull markets tend to extend for 15, 20 years we're in a secular bull market >> we are in a bear market we're 20% off the highs for the s&p. that's technical definition. it felt like that for a lot of

investors. >> that still doesn't mean you're not in a secular bull market if you study 100 years of the dow jones industrial average and look at secular bull markets, you'll see 20% and 30% pullbacks and yet you were still in a secular bull market. >> okay. lisa, what's your take >> we're really more cautious as you pointed out. really the reason why is while, again, there are some positives to u.s. stocks in terms of companies really being able to maintain growth relatively well even in a tough environment, overall we still see a lot of headwinds for u.s. equities. chief among them is inflation pressures which is causing the fed to be quite resolute in tightening its policy, whether it's where interest rates are headed as well as with the quantitative tightening program that's going on. in that kind of environment we see it difficult for stocks to continue to maintain positive momentum in addition to that, when you do

look at the growth characteristics, whether it's on a macro basis or what is actually happening in terms of underlying corporate earnings, what you see again is while some are still in again that positive territory, they are decelera decelerating so we are seeing that negative momentum in terms of the underlying operations as well. >> i mean, i didn't bring up huntsman, the chemical company they cut their ebita guidance by 20%. talked about weakness in demand markets, polyurethanes and other demand products. if the concern is that the fed has to tighten and weaken demand and fight inflation, isn't that happening all over the globe and in places that don't have a strong base as the u.s.? >> absolutely. so when you're looking within u.s. equities, again, certainly, yeah, u.s. equities still relative to other equities do have some momentum and advantages but when we're looking at overall how to position the

portfolio, our best advice to clients at this point is to head towards asset classes that have a higher component of ongoing income and yield, so those would be areas like high-quality fixed income as well as global infrastructure when you just have a tougher economic environment where there is quite a bit of volatility and prices, these types of areas where you get more of an ongoing cash flow stream from diversified sources can be fairly appealing for the portfolio. >> jeff, are you worried about the corporate earnings and margins starting to buckle here amid some of these warnings from industrial companies, chemical companies, fedex today >> i think estimates will come down i don't think they're going to come down a great deal margins have been wide i think they'll narrow a little bit. but not enough to cut off the strong earnings stream we've had. i think pullbacks are for buying in secular bull markets. i think she makes a good case.

but i've been in this business 54 years and looking at equity markets for over 60 years, and i've seen secular bull markets before that's what we're in it's probably got another 5 to 7 years to play out. >> no matter what the fed is doing, no matter where inflation goes no matter what the company does? all these factors are weighing on stocks. >> you could have an accident -- if you have an accident, all bets are off i think while the economy is going to slow a little, i don't think it will hurt the stock market has much. i think earnings will slow a little i don't think that hurts the stock market that much you could get a policy accident out of washington, d.c. where i live, i would not rule that out. >> like what >> that would be my biggest worry. they make a policy error on taxes or some other event. >> so you think a tax change policy could be more impactful

for the market than the fed raising rates? >> i don't think the fed is going to raise rates that much i think they'll continue to raise rates to the margin. they'll raise rates shortly, and then i think they'll see how the economy reacts to that i don't think they raised rates enough to hurt the economy i've been in this business since fed funds rates were 22% you know where we are on fed funds right now. they're not high enough to hurt stocks >> all right fair enough. jeff saut, thank you for joining us lisa erickson, good to get your take as well opposing views. here's where we stand in the markets. down 212 on the dow. we lost a bit of steam it looked like we were going to recover, now down 1% on the s&p 500, 5% for the week consumer staples are just barely positive they're up there with utilities and real estate as the best

performers today what's under pressure the most, energy and materials wall street is buzzing about kanye west's interview on "closing bell" yesterday after terminating his yeezy deal with gap. >> don't bring a leader in and have them not lead why would i argue with people who are getting paid by the gap? i'm sorry, i'm not going to argue with people who are broker than me about money. >> such a good line. adidas could be next a oscler look at his future with corporate partners straight ahead. new crepe corrector lotion only from gold bond. champion your skin.

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about? there's fallout, gap officially now out of the partnership we got ahold of a memo that the head of the gap brands sent internally it says in part, while we share a vision of bringing high-quality trend-forward utilitarian design to all people through unique omni experiences, how we work together to deliver this vision is not aligned and we are deciding to wind down the partnership. this comes after ye himself terminated his contract with gap. he joined us on this show yesterday to confirm that and explain why. >> honestly, there's always struggles and back and forth when you're trying to build something new and integrate teams. so we designed -- we designed an entire collection, and actually i wasn't able to set the actual price that i wanted for this collection and then they actually took one of the shirts and sold it for $19. didn't price my stuff -- priced

my stuff at $200 and above their whole price point normally, and then did the exact shirt for $20. >> pricing disagreements, he was upset they didn't do a yeezy store as promised. it's weighing on gap look at gap stock, down 8% compared to the retail etf, it's down about 5% for the week analysts who cover gap say this was a big missed opportunity and a sign that gap itself is struggling for direction and leadership the ceo is out and old navy, the crown jewel of this portfolio has started slipping we're watching adidas which is still not commenting after ye indicated he will pull out of that deal, too >> we did the shoe that -- this knit runner. i told them, this needed to be a marathon shoe, it ended up being the most uncomfortable yeezy ever people who have worn a yeezy, they say this is the most comfortable shoe i've worn

>> just one in a litany of problems that he talked about with adidas. it's a bigger issue for this company because yeezy is a revenue driver for adidas and it has grown exponentially and helped adidas turn around its cool factor going back to 2016 when kanye first signed on kasper rorsted called him the company's most important partner. and rorsted himself is leaving and adidas is looking for a new ceo. it's been struggling lately. the stock down more than 40% this year. ye told me he's done with corporations and will grow yeezy as a startup on his own including fashion, real estate and education. as for investors in gap and adidas, both have been under pressure cannot be thrilled that they are now losing a cultural icon when we come back, it's been an ugly week for apple despite the iphone 14 release. find out if it's more than sell the news event the stock is down another 1%

more on the fedex fallout and ge getting crushed when we take you inside the market zone. down 111 back on the upswing here as we head into the close. felt everyw. that's why at chevron, we're increasing production in the permian basin by 15%. and we're projected to reach 1 million barrels of oil per day by 2025. all while staying on track to reduce our carbon emissions intensity in the area. because it's only human to tackle the challenges of today to help ensure a brighter tomorrow.

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it's been an ugly week down 5% on the s&p 500, 6% on the nasdaq that inflation number, hotter than expected. some areas for concern about the fed having to do even more have you recalibrated your expectations >> i would say i had to adjust them a little bit. i was surprised by that inflation number, which i thought would probably cool from where it had been the month before this is all tied together. if inflation remains high, the fed will be worse than expected. the fed caused this problem with their quantitative easing. now they have a crazy method of getting out of this problem, which is crushing the economy. that's not why we have inflation, but they're intent on doing it so we would all love for them to stop, but that's not going to happen until we get better inflation numbers. this is all tied together. then we got fedex saying today that they had seen a global

recession. and more we dig into this, the more we think this could be company-specific information but there's no doubt about it, the last couple weeks the news has generally not been positive. >> let's talk about fedex. it is the stock story of the day. the worst performer by far on the s&p. the ceo yesterday highlighting weakness in asia as a big concern. our next guest says if fedex is falling by this much, u.p.s. is in for bigger trouble. let's bring in don i'm surprised to hear this is your view. a lot of folks point to, as frank holland pointed to earlier, execution problems at fedex, which is why it's getting hit harder than a u.p.s. >> it's very simple for us on wall street in our ivory towers to look over and say, well, they're probably having execution issues or u.p.s. is executing better when the truth of the matter it is might be the underlying freight flows. >> why do you say that

hasn't fedex struggled more than u.p.s. in the last few quarters? >> if i look at what happens internationally with both u.p.s. and fedex or for that matter the global express transportation market there are two dominant players in the u.s., it's fedex and u.p.s. in asia, fedex and dhl and in the eurozone, dhl and u.p.s. so when you see what's been happening in asia, the drops are much more dramatic because the chinese are arbitrarily closing things our government is not the only one that can use policies of the past that failed and decide just to continue to use them, which is what the chinese are doing with their covid containment policy that affects asia more than anyone else. since that is where fedex makes most of its -- the greatest incremental margins on its

international express business, it gets hurt more. >> right so there's that. he also warned on the u.s. why do you think u.p.s. will get hit harder >> i'm just simply saying, if fedex -- the markets today are saying fedex shares deserve to be down 20%, yet u.p.s. is only deserving a 4% discount. the bottom line is europe did not have as much recovery. it's still down as well. it's down 15 plus percent right now. and from a percentage basis it's not down quite as much because it didn't grow quite as much europe got worse than it did during covid -- than it did back in '08 and it never got back to previous peaks since '17/'18 asia never got as bad as it did in '08/'09 and it made all new

highs last year. with the declines in europe, they'll impact u.p.s. and to think they're immune is being blind. flying blind >> here's my other question that i heard today posed as a theory. how much does fedex get grouped in with the covid winners camp like a peloton or a teledoc, there were so many people at home, people were getting packages and they expanded the business so much and they were caught off guard when things turned around? >> i think -- >> is that part of the problem >> i think that critique might be fair when the stock was $300 a share. today, that's not the story. the bottom line is that when markets go over a long period of time and improve, they don't go in a straight line they -- the rate at which they improve changes.

gets better, less better, than really better. we're seeing that happen are we going to buy more online than we ever have? yes. will you see as big a percentage increase as we did during the covid period probably not e-commerce is growing. it's continuing to grow. fedex serves that market as does u.p.s. and, so, will overtime they profit from it and will shareholders benefit from it absolutely just the amount of that growth will vary over time. >> got it. thank you for the perspective. >> always a pleasure fedex is not the only company raising a red flag ge, take a look. one of the weaker performers on the s&p. the company warning free cash flow and margins remain under pressure because of supply chain issues seema mody joins us. is ge the first shoe to drop for the industrial sector or is it

an outlier >> well, ge is a highly diversified company that uses a lot of key raw materials the comments from the cfo, she did say the supply chain issues were mainly to aviation. honeywell makes an engine, but for the jets business. cummins, another engine manufacturer that services the trucking market. pratt and whitney is a see player in the aerospace market the timing is unfortunate because demand is ramping up for planes as travel rebounds from those pandemic lows. just another warning that we received was from huntsman, a key chemicals company, cutting its third quarter guidance the ceo blaming the surging cost of energy in europe. clearly not a unique problem, one that is more of an industry-wide issue.

so many chemicals and materials like plastics are derived from oil. 3m is the leader in the chemical space. >> seema mody, thank you >> charlie, huntsman, fedex, they're typical economic barometers they're global, diversified among a number of end markets. warnings like this, should we be concerned about the global economy or company specific? >> i would be lying if i said i wasn't less optimistic about the economy than, say, six months ago. i will point to the fed. i think taking interest rates 1.62 ten-year to 3.40 will have an effect. it will have an effect on mortgage rates, home building and consumer confidence. but i want to just point out that there are a lot of other data that doesn't look bad at all.

consumer confidence was up this quarter. inflation expectations were down this month from a months ago and supply chain issues are generally getting better you can see that most easily when you look at the cost of shipping which has come down dramatically i think these are mostly situation-specific next, they benefited from covid. they are one of the companies that benefited from everyone staying home i would be careful about buying stocks that did as well in covid as they did. >> the release of the iphone 14 not helping apple shares today one of the stocks dragging down the dow and the nasdaq steve kovac joins us from an apple store in new york city apple is down 4% this week is it a sell the news event? >> that typically happens with iphone events, there's a ramp up in the stock going into the

event and selling off after the announcement and after the release of the phone but monday was an exception. it was up 3%, then we got the hot cpi number and everything fell apart i'll tell you what people are talking about today, we've been talking all day about this looming recession and the warning from fedex and so forth. it does not feel like a recession here on 5th avenue in manhattan. the line is still around the block. people are still paying up for these $1,000 iphones at least the apple consumer seems to be doing fine >> i did not realize people still line up for iphones. that's so old school >> yeah. especially because it's pretty easy to order online i was chatting with people, they said they wanted to guarantee they could get the new phone on day one. some people are the fans some people are the people being paid to wait in line and resell it the vast majority of people are either here waiting to pick it up that they already ordered online or they're excited and

willing to wait a few hours to get the new iiphone >> thanks for that report. i see the line behind you. charlie, how do you look at apple? i know you're a value guy, and you don't like any growth stocks -- by the way, meta making a new low since march of 2020 -- apple, is that a tell of some kind and is it appealing to you? >> of all the faang names, this one is the most tempting it's a very, very real company with real products, real barriers to entry. it got in june to a level that we got very close to buying it and we missed it and it had a big rally. we were nevertempted by facebook or amazon, but apple got very close >> we have two minutes to go in the session. i will point out we're seeing a little recovery here in the major averages you have now real estate joining

consumer staples in positive territory on the day for the week, everybody is down. but it's happening right now there's the dow. you can see we're climbing a little here, back towards the flat line into the close down 124 on the dow. the biggest drags are boeing, goldman sachs and chevron. have you been adding on these weak days to some of your favorite positions what's the strategy for you? >> it's to add to the names that are most below intrinsic value we're finding that clustering in housing-related names and in finals goldman sachs adding to trading right at that one times book level. some of the home related names that we love, mohawk carpets, anything related to housing has gotten very cheap here financials, northern trust getting very cheap here. >> you're adding to housing stocks as mortgage rates go

above 6% and the fed continues it's not stopping any time soon? >> because everybody hates them right now. we have names like mohawk trading at 8 times earnings. this is going to be -- this, too, shall pass. when it does, the consumer is in very good shape. the consumer still has a lot of equity in his or her home. they'll do remodeling, add new carp carpeting, new vinyl files >> home depot down 33.5% for the year charlie, thank you very much always good to chat with you as we head into the bell, again, we are well off session lows we're having a bit of a recovery down 121 on the dow, which is actually near the highs of the day. the lows of the day were down 411. just continued selling we never got a bounce after the big slide was on tuesday, the worst day in more than two years for stocks

s&p 500 right now is down 0.7% when we started the hour, it was down a full percent. it's still down about 4.25% for the week looking at the worst week for stocks since june. the nasdaq is down about 5.5%. that's it for me on "closing bell." have a great weekend i'll see you monday. ♪ all right. thank you very much. tcu is ringing the closing bell today in honor of that school's 150th anniversary. congratulations. great to see everybody here at the new york stock exchange. welcome to all of you in "overtime" i'm scott wapner. in just a little bit, i'll talk to tom lee about how given all we know about the fed and the economy, he is still bullish on stocks for later in the year maybe the contrarian view is t