tools to help you see how much productivity your workers are doing. we get these emails actually you might notice -- it's called viva. >> i get them. i delete them. >> it'll send a productive update through the week. >> they're always -- it's ray parker i always feel like somebody's watching me. that does it for "the exchange." see you monday "power lunch" starts right now brian, i don't want to know how productive i am and i don't know want to know how many steps i take welcome to "power lunch. i'm tyler mathisen along with seema mody, here's what we got. central banks around the world are hiking rates virtually all of them. global inflation fight is moving yields higher presenting investors now with new opportunities in fixed income and challenges across the book we've got your playbook. plus, the main street economy.

we'll talk to the ceo of valley national bank to tell us what rising rates are doing to small business and consumer lending and how that is changing the outlook for the economy. seema. >> tyler, there are 121 new lows on the s&p 500 that is nearly a quarter of the index, a quick market check dow industrials fighting to get into positive territory at the lows it was down 189 points it's currently off by 4. s&p 500 lower by half a percentage point and the nasdaq composite, the underperformer here down over 1%. speaking of the nasdaq the chip stocks are getting hit hard at this hour. take a look at advanced microsystems, nvidia on semiconductor down nearly 4% to 5% and have an outperformer. one in my world. royal caribbean higher after tapping the bond market to refinance debt in a filing the company says bookings are significantly outpacing 2019 levels, stock up 1.2%, tyler. >> the fed, of course, leading

the fight against inflation, but it is far from the only central bank doing something it's become a global battle, by the way, the fed hiking interest rates by 0.75 points i don't remember ever having three hikes of that scale so quick in succession. then overnight the bank of england said, okay, we'll raise too but only by half point for the second straight month despite saying the uk may already be in a recession, not what you want, higher rates. swiss central bank, 0.75 point bringing them out of negative territory. norway, a half a point there and in asia, indonesia's central bank hiked them by half a point. all of this playing out in the bond market with yields across the board rising the two-year around 4.1% and

rick santelli is at the cme. what is the market telling you, rick, as a seasoned observer >> it's telling me that the equity markets better be careful because the big guns are out and not only in the u.s. interest rates are moving and spreads are getting wider. it is as you pointed out a global event i mean sweden and vietnam did 100 basis points one week of two-year its high-water mark was 4.16%. it's had, what, 11 days in a row of higher yields and it's at a 15-year high as you see on the one-week chart intraday of 10s it had a high of 34.71% today it's currently trading around 3.69 and that's up almost 16 basis points these numbers are huge look overseas, bank of england as we discussed raising rates, as well, 50 basis points well, let's look at what happened to the guild. this starts on august 1st.

the guild closed a whisker under 3 1/2%, a fresh 11 1/2-year high yield close and just for the month of august it basically went from 180 to 3.50. that is huge the ecb we know is continuing to try to snug up but they have a variety issue with weaker economies, nonetheless bund yields closed at a nine-year fresh high and all of this and all of the recession talk. you talked the uk but there's going to be more it's making the dollar and our central bank ting of the globe as the dollar is nearing in on near 20 1/2-year highs it's on pace to close at the best level since may of 2002 back to you. >> thank you very much, rick as yields climb are fixed income investments now becoming more attractive as an alternative to stocks our next guest says yes but

investors will need to be nimble let's bring in joe an that, the co-founder of bond blocks investment good to have you you said fixed income markets are beginning to look like a place for positive returns and yields this is after a long period where many investors regarded bonds as at least treasuries as fundamentally uninvestable the turn has taken place here. if i buy your thesis, where in the fixed income world should i investor t bill, unis, junk, what >> yeah, we think that actually the short end of the curve is really interesting and i think a very intuitive thing is look at treasury exposure. if for anything just getting yield on your cash again is important and i think what we would tay going forward in broader fixed income portfolios is we've come off, you know, a

yield of a little over zero going up to 4 with just within this year and so we see that the fixed income markets are structurally changing so even if you're not ready to get into credit you might consider there's important entry points because fixed income is structurally different now and will be for the foreseeable future, so you'll be getting a lot more yield in your total return you'll be getting diversification in your portfolio and with potentially upcoming downturn that's just something that hasn't been the case in the last ten years. >> just as it's difficult to tell equity investors to invest into a falling market, it has to be difficult to tell bond investors today that, hey, we're getting to a point where bonds are investable again after the kind of year that bond investors have had on a total return basis. their yields are up but their value of their bonds or bund fund shares have gone down. >> yeah, i think this year has been a painful year across the

board and the equity portion of your portfolio or the fixed income portion of your portfolio but we now are getting to levels we have clear conviction and action by the fed. it's kind of irrefutable and investors should have no further doubt the fed will be aggressive but bondbloxx likes to say you need more tools more precise to manage the risk. duration is a key factor that every income investor has to deal with every day so interest rates are rising that's why we like more precise treasury tools to effect that exposure >> joana, what do you make of the sell-off in the u.s. junk market i know you've been studying the balance sheets of a lot of companies that are quote, unquote risky. where do you see the prospect of defaults in the coming months, if any >> i would say that, you know, there has been and clients that

we've been working with, there have been a lot of discussions about staying in high yield but shaping your portfolio to higher quality high yield a lot of interest in our xpb product which is a portfolio of higher quality high yield bonds. and i think that that's more what we're hearing about versus the default is, okay, i may believe that's coming but what can i do today what's actionable today to anticipate that and transition my portfolio into higher quality? >> so it's j-u-n-q-u-e instead of j-u-n-k you said -- you need to be -- i forget what the word is, more precise in the ways you invest today than you might ordinarily have been and that you need more precise tools. what are those tools what are you talking about. >> yeah, bondbloxx was founded to focus on fixed income to

investors where an etf company and launched 19 products to date and update the broad-based tools in the market for over 15 years so in high yield, for example, we have seven sector funds you can reduce volatility in your portfolio by adding as much energy as you want or as much health care as you want. with just launching eight duration targeted treasury etfs which haven't existed before and address a lot of the duration -- interest rate and duration drift you're getting in a maturity based etf. things you can do today with new products you couldn't do before is where we are focusing and i think with yields increasing and people wanting to be more specific about how they build their portfolios, that was what our aim was with our product line. >> all right, joana, thank you >> you bet. our next guest still expects a strong finish to the year for

stocks led by consumer discretionary and technology here to explain is the president and cio of henyon & walsh. she was making the case for bonds. you could get yield in the bond market so tell us why stocks are a better idea for investors right now. >> sure. we see two particular tailwinds lifting stock prices higher. first we believe that the fed will, in fact, turn less hawkish, certainly not dovish but less hawkish in november and december, perhaps raising by only 50 basis points in november and only 25 basis points in december if they do, that would signal to the market that perhaps we passed peak hawkishness and also hit peak inflation given that the fed wouldn't cut back on the magnitude of the rate hikes unless inflation was starting to moderate if, in fact, that occurs we

anticipate more money coming back off the sideline and starting to go into those areas the stock market that have been beaten up the most thus far this year in 2022. >> kevin, what gives you confidence the fed will be less hawkish? the takeaway from the press conference with jay powell yesterday was that the concept of pain, he certainly stressed that point that it will be painful for investors and households as he tries to tackle inflation. >> my confidence in this outlook is my lack of confidence in the federal reserve. think back to earlier this year when they suggested that inflation was transitory it certainly has not think back to may when they told us that no rate hikes above 50 basis points were under consideration well, guess what, we've now had three consecutive rate hikes of 75 basis points each and told us they were going to raise rates on a gradual basis that's certainly not been the case this year so why would we now start to believe that they're going to follow in that

they suggested yesterday i do believe they're trying to talk down inflation in addition to raising short-term rates and influencing longer-term rates by reducing the size of their balance sheet, but, again, the economy continues to slow. we've met the technical definition of recession and how much further can the fed go without risking pushing the economy into a deeper and more severe recession than would have otherwise have occurred on its own. >> i think you answered my question, kevin, where you said my confidence comes from the fact that i have a lack of confidence in the fed because i was going to ask you, i don't think you and i were watching the same program yesterday, because i sure didn't hear any wiggle room there, maybe we weren't watching the same -- maybe we were smoking something different. i don't know what it was. >> i don't smoke >> yeah, neither do i, but -- now i'm still without words. but at any rate, so if you're

right, if you're right, where are the early opportunities going to be in the equity markets? >> great question, tyler and, remember, the other tailwind that we see taking place in november are midterm elections historically stocks have risen on average roughly 16% in the 12 months following midterm elections. we also know, tyler that jem stocks do better when we have a divided government and if in fact the polls hold true it looks like we will have a divided government after the midterms the fed turns less hawkish after the results. we think technology and consumer discretionary notably e-commerce are going to stand to experience the greatest rebound given the extension of the pullback they've received thus far. stocks such as amazon or even aci worldwide on the technology front, if you're not familiar with them, they provide the technology that supports realtime digital payments and credit card processing

amazon fits into that same as amazon will take advantage of the rebound in e-commerce activity as we expect, another record holiday shopping season despite these recession aerovironment we're currently operating in and finally we like cvs health care. they made a good deal, around 2.2% yield and their recent acquisition of signify will take them into home health care in addition to what they provide already in their stores. >> kevin mahn, a nonsmoker, thank you. we appreciate it >> take care. all right, coming up how inflation is changing the holiday shopping season and what walmart and target's strategies say about the economy and the health of the retail sector, plus our small business owners struggling under the weight of rising interest rates. we'll talk to the ceo of valley national bank who will give us a bird's-eye view from main street but first a look at shares of eli lilly. already said eli manning

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welcome back to "power lunch. inflation is making the upcoming holiday season trickier for retailers. this year walmart says it will hire 40,000 workers, a big

decrease in the 150,000 workers it hired last year target instead is hiring the same number of workers as last year 100,000 but it's offering holiday deals and promotions a little bit earlier here to discuss what this says about the consumer, retailers and the economy is the ceo good to see you. >> good to see you. >> is it inevitable we will see a slowdown in retail hiring this holiday season or will it be more selective, department stores versus e-commerce, retailers operating or servicing the low-income consumer versus luxury what do you expect to see? >> it's already selective. you said what fedex was going to do we know they have their own problems to deal with. u.p.s. acts like it's going to be about last year target said the same thing as last year and walmart in a different spot hiring 150,000 people last year but kept a whole lot of them on staff and they're adding a lot of --

they're giving those people extra hours this year rather than hiring more people and also have become more efficient so i'm not sure what they're telling us meaning anything other than what they've told us all along, pretty good back to school and solid holiday and most retailers saw a solid back to school and most retailers through yesterday will tell you sales were okay but they're worried about might not still be okay given a 75-basis point increase today and all or yesterday and all the things we've seen going into the consumer with, what, 8% inflation, maybe that high coming through the back half and so they're worried about it but they're not seeing their customer walk away yet. >> as long as the demand remains strong hiring shouldn't be affected as much as some are expecting. which could be next to warn based on their balance sheets and what we heard over the last couple of weeks during earnings season which could be the next

retailers, the next shoe to drop >> there's already been a lot of shoes dropped. kohl's had problems and the gap in their reporting but we've seen really good numbers out of people like tapestry and macy's has been pretty good haven't seen those change so don't get those stronger more aspirational businesses -- we saw bad numbers out of both target and walmart but we know they're straightening out their problems, and they're going to have a better back end than front end in both cases. so, yes, it's tough if you're dealing with the lower end but i still expect dollar general to do pretty well i expect tjx and burlington to do pretty well on the trade-down and expect macy's to do well because they're the back to gift place, better gift giving than we've seen in three years because the consumer is saying, wow, covid is finally over maybe. maybe i should go back to normal and we know that they're attracted to gifts right now so i see that as being strong and

as we get to more aspirational ones i think we'll see good numbers too. i think nike will be good and that boot barn and levi's will be good because the western craze is still in and have a reasonably affluent customer so i think the upper end will do well and the lower end will struggle because of the trade down in what people can afford to buy because they have to spend so much on food. but at least gas has come off the $5 a gallon mark you know, we had the faang stocks but i love your confection, the watch stock, walmart, amazon, target, costco and home depot pretty much no matter where the customer is, they have won the game, you say. so that would be a good place if i were trying to build my own retail etf it might be wise to just own those five, right? >> well, i confessed i was jim cramer's numbers that came out on -- he's the one that created that i adopted it because i like it so much and believe in it so

much but, yes, absolutely. you can own those five for the rest of your life and be happy they have won the game, right? they were essential, they got to stay in business, they reinvested in the business during covid they took market share and they are know not giving it back so when we come out the other side of this, whatever this is, then we're going through with the fed and inflation, these will still be the five big winners, i will believe that and i'll be with that for a long time unless something dramatic happens. >> jan thanks so much. jan kniffen, we appreciate your time. the 30-year fixed mortgage spiking. that number is next, plus, further ahead, new reports, the s.e.c. will not ban payment for order flow a crucial yet controversial part of robinhood's business and don't forget cnbc's delivering alpha returns in person on september 28th the world's top investors will discuss risk, tinnitus and

navigating the new market dynamic. lots to talk about there you can scan the qr code you see on your screen or go to cnbcevents.com to register we'd love to have you join us. it's a week i think from yesterday. we'lbeig bk.l rhtac personalized financial advice from ameriprise can do more than help you reach your goals. wow... we can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about.

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welcome back to "power lunch. big, direct reaction to the fed's rate hike yesterday. diana olick has the latest mortgage numbers hey, di. >> the average rate took another big leap today jumping 26 basis points to 6.62%. that according to mortgage news daily whose coo told me the fed only amplified the message of faster rate hikes and powell's message did nothing to soften it longer term rates are getting caught up today. mortgage rates loosely follow the ten-year treasury yield. if you're buying a $400,000 home with 20% down, your monthly payment is now $320 more than it was just at the start of august and $700 more than it was at the start of this year not great news for anybody out shopping for a house this weekend, tyler.

>> diana, thank you, i think let's get to leslie picker for a cnbc news update. >> thank you your update at this hour a new report today says that unemployment fraud during the covid pandemic may have resulted in over $45 billion in losses. this is roughly three times the previous estimate. the labor department says that more coordination is needed to investigate and charge those responsible. tesla is recalling more than 1 million vehicles over an issue with the automatic windows not responding correctly after detecting an obstruction the electric vehicle manufacturer says the issue affects five years of model 3 cars and a few model ys and x vehicles tesla said it is issuing a software update for the program and no injuries have been reported and as you guys were just discussing, target and walmart have announced they're hiring for the holiday season target is planning to hire up to 100,000 seasonal workers, about

the same number as last year, walmart expects to hire 40,000 seasonal employees which is down from last year retailers are still recovering from a year of excess inventory and markdowns. i can't believe we'retalking about holiday season but it's officially fall. >> thank you, leslie. coming up, breaking down the rate ripple effect, the fed decision having an effect across stocks, industries and entire nations. first a look at what it could mean for regional banks, will small businesses slow their borrowing? the valley bank's ceo weighs in. plus, the dollar getting stronger wreaking havoc on global and emerging markets. growth stocks hit hard by raising rates and cathie wood is not all that happy along with other investors when "power lunch" returns

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welcome back we got 90 minutes left in the trading day. stock, bond, commodities and a bank ceo will tell us what he's seeing from his perch on main street bob pisani, stocks continue to slide following yesterday's rate decision bob.

>> tyler, the s&p is underperforming the dow because tech stocks heavy-weighting in the dow are down 1.3%, bank stocks down 1.5%, the s&p 500, i bring it up because we're less than 90 points away from the june 16th low, remember that number, 3666 that's the benchmark everybody is usingy we break through that or not what we are definitely doing is seeing a dramatic expansion of new low, more than 600 on the nyse almost 30% of the nyse maybe 700 or so on the nasdaq. pretty significant considering big names here, look at this alphabet, meta, microsoft, intel. all them had 52-week lows and on the dow we see big dow name, nontech, 3m, nike ahead of its earnings next week, visa, 3m 52-week lows even the transports, obviously nike, excuse me, obviously fedex has been a new low for awhile bouncing today budgetblue,

southwest air, matteson and some logistic companies so keep an eye on all that. this is what people are concerned with as we slowly get to the idea that we're going to have to take down earnings estimates more for the fourth quarter, a lot of these companies are now sitting right at the precipice of not notable 52-week lows. >> it's tech but it's not just tech there are a lot of sectors that are being hit. bob, thanks. let's go to the bond market. yields continuing to move higher the two-year yield soaring to a high of 4.14%. there you see it 4.11 right now, 4.11 get the information. there's the ten-year at 3.7, let's call it. the spread has also jumped, now it's sitting just below 3.7. that is the ten-year right at 3.7. a lot view short-term rates higher than long-term rates as a recession indicator. now let's move forward and check

on oil higher today by less than 1% after falling yesterday after the fed decision at least for today it seems like the market is fearing supply disruptions more than demand destruction. there you see west texas crude up 50 cents at 83.44 well, rising rates rippling through the banking sector and that is having an impact on small businesses' willingness to borrow and seek loans. joining us is ira robbins, valley bank chairman and ceo ira, welcome back. good to have you with us let me turn to you and ask you something maybe out of left field. i'll get to the business question in just a moment. have you started raising your rates on deposits? >> we've had to. unfortunately, i think there's been a significant outflow of deposits in the banking sector and there's still been strong demand in the environment as well and as a result make sure we have enough funding sources we have had to begin to raise rates.

although still at a lagging pace to where the market has gone or what we're able to charge on the asset side. >> let's talk a little bit -- interesting answer will he's talk about what you're seeing from business borrowers are they pulling back? how are they reacting if they have new loans -- loans they need to roll over, how are they reacting to the idea they'll have to pay more for their money? >> no one is happy about it. so we've had a lot of difficult conversations with borrowers many projects that were assessed were done in different economic times. debt service cover ratios look different than what they did six to seven months ago. i think what we're seeing is a lot of uncertainty across the entire space whether it's with interest rates, from a dmroenl perspective. what's happening in ukraine or a supply chain perspective still and as a result uncertainty leads to a lack of commitment when it comes to capex. >> the fed fund projections rate estimates of 4% rate by the end

of this year, for small business, ira, could we reach a level or point at which these small business owners are not able to cover the cost to service their debt >> i think if you look at one side of the ledger, expenses have upward mobility as long as revenues go up and still continue to see the ability based on inflation to pass along many of these expenses until that really begins to change, the interest rate environment is still okay for some of these small business. >> credit card debt has risen. that was the message from american express last week they also said as you pointed out spending is also up. so what level does it need to reach before this becomes a bigger concern for markets, credit card debt >> yeah, i think, looking at one side of the balance sheet in isolation is really going to confuse a lot of people about how they think about the projections of the economy what's gone on in the interest rate 200,000 opinions as to what will

happen each opinion is based off what indicators you're looking at from an economic perspective corporate profits and unemployment, one could argue the fed still needs to be more aggressive in raising rates. if you look at housing there is an slowdown and one could argue the fed has been overly aggressive and needs to slow down what their policy looks like to me there's a couple underlying factors that have driven inflation over the last few years. one is the massive fiscal stimulus our government has put out there. the monetary policy, the uncertainty with regard to ukraine supply chain and there's a third one with regard to the environment and climate and until we have a better understanding about what the impact is on variables that are driving inflation it's hard to say whether the fed has overdone it or not. >> let me ask you, because you just said something a moment ago that was very interesting. you said that businesses are having to look or take a second look at the financing of projects and that you're seeing some capital expenditure outlays

going down what does that tell you about what's going to happen or is happening in the broader economy? are you seeing a slowing economy? >> without question, i mean, i think i'd have to have my head in the sand to think we're not going through a recession. things are definitely beginning to slow and the challenging really point goes back to looking at the unemployment number, wage inflation is still significant and corporate profits are still very, very strong today but we have to keep in mind those are lagging indicators and as a result of those being a lagging indicator things can seem good for a lot of people but from a long-term perspective it's insane to think the government could put that much money out from a supply side and not have inflation and what implications will look like. >> very quickly, i don't know how much of your business is in the mortgage area but what are you seeing there in terms of applications and people coming in to get loans? >> yes, we have about 20% of our business, we have a portfolio that's over $4 billion today, a large amount is in florida as

well as in the northeast our activity is down about 35% from where it was. refinance activity has basically stopped across all segments of the footprint. you know, for us, last year our conforming residential mortgage rate was 2 7/8 now 6 1/4 and likely to go up further so the implications to those purchasing homes will be significant and continues to be significant. >> ira, we love having you on because you answer the questions, you're very direct. we thank you ira robbins. >> thank you. ahead on the show, the fed's rate behinds only fueling the dollar's dominance over other foreign currencies what does it mean for investing around the globe we're celebrating hispanic heritage month let's listen in to the hispanic association on corporate responsibility, sid wilson ♪ >> we know that corporate america has a lot of work to do to make sure that we are fully

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hey, welcome back to "power lunch. steve kovach with a market flash. fedex released earnings. earlier they were expecting them after the bell looks like shares are up about 2% here. mostly on this new headline we got most of these results early but the new headline saying 2023 will consist of 350 million to $500 million in cost savings

that seems to be what shares are reacting to. we will expect to get a call or earnings call from fedex after the bell today where we will get more details on this but for now i'll send it back to tyler and seema. >> waiting for those comments from the ceo up now but still down 26% this month. let's pivot and the fed's rate hikes are spelling trouble for asian economies. japan overnight intervening in the market to defend the yen many countries looking to china for support. the wisdom tree emerging market etf has seen $2 billion in outflows over the past four weeks. what does it mean? let's bring in jeremy schwartz jeremy, appreciate you joining us today japan intervening first time in 24 months since the aftermath of the asian financial crisis could we see another one >> well, you know, it wouldn't surprise you to keep seeing more of those headlines you know, they try to stem the

tide of all the flows going against the yen but in reality they didn't change much. they put in some volatility that the yen might appreciate on days they intervene but left their monetary policy unchanged. the ten-year in the u.s. is rising, the force is driving the yen weaker is rising differential -- the fed being one of the most aggressive central federal banks raising rates and so the fundamental forces still being yen weak. i think they're going to have to continue to intervene. i don't think that will change until they change their policy we still say you should be hedged when you go japan you shouldn't be betting on the yen. i think it will be a tough environment. >> there was a great op-ed in "the financial times" titled, global backlash is brewing against the fed. what is the most extreme scenario we could see if the dollar continues to rise could cece coordinated action taken by emerging economies to defend themself from a stronger dollar >> you know, i think they're

going to wait to see the end of the cycle. i think we're closer to the end than we are the beginning. now, of course, that means inflation actually has to come down and they have to start seeing it come down. i think shkaplerov's policies, they feel like they can't do enough to stem the tide on the central bank policies so they're waiting six months to see sort of the last few hikes from the fed and then they might change their policy it'll coincide with the new governor but i think it's tough because the fed is raising rates aggressively and now you're seeing some of the other central banks like the ecb trying to play catch-up but japan is the outlier. i think for global investors you're going to go where their policy is still easing japan is that, china is that the ones that are tightening aggressively is a tougher environment. >> you're recommending japan and china. what's the thesis on emerging markets right now? does it have to get worse before it gets better and evaluations come down to a point where investors like yourself say

thousand is the time to get in >> well, i think the em central banks were the early tighteners. you zebra sill as an example of a place that's commodity rich. they were hiking more aggressively earlier and so the they're not having to do the relative tightness today you know, so i think to some extent the covid policy has been tough and that has ripple effects so if china can improve its economy next year post this, you know, the communist party thing a month from today, that could be a useful catalyst for broader emerging markets but think the central banks tighten more aggressively and took the pain earlier setting the stage for a potential rebound next year. >> if i want to invest in emerging markets but not in china, can i do that by a fund or ang etf >> yeah, we launched one today

xc which is emerging markets x state owned state china going back 15 years ago and see a lot of interest in those strategies, there have been inflows in those funds but see x china. china was only 5%, 6% of broad indexes years ago and got up to 40% which is a big allocation and think people want to control their allocations to china, a fund like xc can give you dedicated exposure and control how much you want and do it with a x state owned approach and think they have good governance, less running of the interest of the state so xc is a brand-new fund piggybacking the full family of now china state owned, and now x china. >> second lead after that is india which is fast approaching. jeremy, thank you of wisdomtree. coming up, the fed creating a major league in kathy woods'

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stock lunch. lie growth investor cathie wood tweetings did appointment in the fed's unanimous decision to raise rates saying the central banks isn't focused enough on deflation. most holdings in her ark innovation fund deflated, folks. trading lower today. we'll look at them today in "three stock lunch" cading with boris schlauchberg. welcome. begin with roku. what do you think of it? >> roku is i think, the argument for roku on a bullish side is that streaming is the future, but that forget the fact there's an enormous a lot of competitors including youtube more watched than most of broadcast tv. the thing is its growth is temperaturedy. 3% to 6% next year projected and guided down, because their primary business is advertising. you can imagine, afdvertising i

the first thing cut when the economy retrenches not a sell because perennial candidates, wary short the stock but definitely want to stand by. not in a position at this point. >> second up, zoom what do you make of the stock? >> interesting about zoom is that amongst all three stocks we're talking about probably the most profitable and mature business we have yet the stock has been decimated. down 22% in august by far more than all the other stocks combined the reason why is because wall street really fears microsoft. the story is teams is eating its lunch. 270 active user i believe in teams at this point. that's really the case wall street believes consumer stickiness is very, very low enterprise stickiness very high. certainly lots of evidence to remember, remember, netscape and rim, everybody littered with companies that lost enterprises

space. next worry is zoom i'm worried myself i don't think this is a good stock. don't actually think -- probably going to drift lower despite the fact it's a decent business simply because it just does not have any chance to win back enterprise against microsoft right now. >> go to block, square, down here today 5%. fairly modest basically. no 65%. excuse me. year to date. >> no. got decimated badly. absolutely right its down actually 80% off its highs because of absorbing the after pay acquisition, but -- but -- despite that, core business of processing both on the consumer side with cash and on the mom and pop side, brick and mortar, actually very, very sound. $52 billion worth of gross buying last year 23% more year over year. probably double digit again this year and probably do about $6 billion in profits this year, more importantly against a $36 billion market

cap. interesting valuation at these levels if you believe we're going into a cash-less society, i believe we are, the stock at this level, this is very much a buy. >> of course thank you. clear answers. appreciate your insights boris, thanks. reports out of the s.e.c. could have a big impact on robinhood. we have the details, next. this is not just laundry. this is laundry that's smarter than the dial. this is ge profile smarter wash technology. fully optimized cleaning, no more guessing. this is smarter cleaning. this is ge profile. welcome to ameriprise. i'm sam morrison, my brother max recommended you. so my best friend sophie says you've been a huge help.

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drawing attention to shares of robinhood giving up on gains the s.e.c. won't ban payment for order flow if this is true a big victory. right? >> right seen as a really big win for brokerage firms especially robinhood. bloomberg reporting s.e.c. will let wall street keep that practice jitters out there about a total ban of payment for order flow, sometimes called pfof involving selling retail client trades to citadel securities instead of having orders routed to the new york stock exchange or nasdaq. critical practiced whether retail investors are getting the best price on the back end calling that best execution. s.e.c. chair gary gensler among loudest critics asking for more disclosure and skeptical of potential conflicts of interest and complained of power

potentially concentrated among select marketmakers. the other side, advocates argue getting the best price, retailers, and why brokerage firms can offer for free and if pfof were banned, back to old days paying for trades robinhood really pioneered that free trading model and executives twl told me they didn't expect a total ban. if it came to that looking at other sources of revenue for context, guys, pfof made up about 68% of robinhood's total revenue in the last quarter. >> robinhood stock trading around $10 a share thank you. robinhood ceo vlad tenev joins "squawk on the street" tomorrow morning a lot to talk about there, 9:00 a.m. don't pomiss it. >> where markets stand there we go. bring up the screen. industrials flat s&p 500 off half a percent but

nasdaq is the problem child here as it has been for so many days. >> subsector within the nasdaq chip stocks, semiconductor names continued to be under pressure ceo of qualcomm talking about software economic headwinds. seems to be part of the story today. thanks for watching "power lunch," everybody. >> "closing bell" begins right now. have a good day. the fed hangover sending stocks lower once again. nasdaq feeling the most pain the dow has made a brit of an impressive comeback. most important hour of trading starts now welcome to "closing bell." i'm mike santoli in for sara eisen. straight to the market dashboard. s&p 500 has been down as much as just about 1% at the day's lows. significant thing, look at year-to-date chart ed in the seesaw action after the fed decision we did break below this 3,800 level an area that some of the bulls hoped would kind of hold it was a range low for