if they didn't cut enough, tcall into question the weakness. >> that it's going to be worse according to a lot of the notes we've been reading. >> christina, great to see you thanks. that does it for the exchange you know what, i'm going to join seema mody for power lunch which starts right now tyler, thank you welcome to "power lunch. a sell-off on wall street. the dow breaking below 30,000. now down more than 20% since its january high this hour, a top strategist tells us what she's watching and what she's buying. we'll discuss the threat of the stronger dollar, whether an earnings recession is ahead and why opportunity can be found in some of the biggest laggards that we've seen this week. a check on where we stand. two hours left in trade. >> the end of trade couldn't come soon enough if you're long the market the dow and the s&p 500 dipping below their june closing lows. the dow on track for its lowest close since november of 2020

almost two years ago there you see the s&p 500, 3674. the june low was 3666. we got below that. we're back above it now. nevertheless, a 2% decline there. and the nasdaq, well, it's down 2.25%. two-year note, look at that, 2.4% oil, well, been on a downward slide for months now below $80 a barrel for the first time since early january continuing to slide there as $78.42 that's pressuring the energy stocks that is the worst-performing sector today and let's get to bob pisani who is tracking today's sell off. >> we are off of the lows but just barely. i want to show you the s&p 500 and tyler is right, 3666 he's got the number right in his head we did violate that. that's the close

we have to go below that to close at a new low the intraday low was 3636. that was on june 17th. we did not drop below 3636 on an intraday basis today it's energy and commodity stocks that are low today look at that, very rarely see a double-digit decline in halliburton on an intraday basis. that's very, very unusual. oil stocks, oil proxies for global growth. the same with the metals and mining company london was a disaster today because a lot of the big metal mining companies, glen core, that trades over in europe and that closed down 6%. you see these, again, proxies for global growth to the downside big cap tech, a lot of new lows today. not apple, but microsoft new low, amd new low, nvidia, that's

a new low. it should salesforce too new low right there. we're starting to see new lows materializing in financials which we did not see earlier in the week a couple of bigger ones, citigroup, some of -- super regional banks like u.s. bancorp, capital one, keycorp. these are all 52-week lows what does the market look like we are dramatically oversold i don't often bring up technical indicators but momentum extremely oversold you look at the strength indicator, this is a two-week reading on the markets very, very oversold. 10 to 1 declining to advancing stocks new lows, look at that almost 1,000 there's about 2400 stocks on the new york stock exchange. so we're talking about 40% of the nyse at new lows only 12% of the s&p, 3% of the

s&p above their 50-day moving average. those are extreme readings usually tend to indicate some kind of bottom what's changed since the june 16th lows? utilities are up and consumer discretionary is up. here you see the big difference here remember those materials and energies, they're proxies for growth, they're the ones that are down the most since the june 16th low that we hit along with semiconductors also somewhat proxies for global growth seema, back to you. >> thank you. with the s&p 500 reaching that june low, the index is closing in on bank of america's street low year-end target of 3600 and the draw down is the result of the rise of yields with much more volatility expected over the next few months. let's bring the head of u.s. equity and quantitative strategy good to have you on. i've read your note. why do you think stocks can fall further from here?

>> well, it's great to be on so i think, you know, one of the things that we're looking for is a real sign of capitulation from a sentiment basis. and while everybody says, you know, the world is incredibly bearish, it's time to get bullish, when the world is bearish, nobody is saying the world is incredibly bearish, it's time to get bullish everybody is under their desk. we did some work looking at what it takes to get to a market bottom in the prior ten bear markets that we've seen for the s&p 500 going back over 50 or 60 years, and i think what's interesting is that a few things seem like they really need to happen in order to getmore constructive on the overall index. first, what we've seen historically is that before the market bottoms, the fed typically cuts interest rates. that seems like it's a ways away in fact, our economists are

forecasting that that happens maybe third quarter of next year so that makes me worry but i do think it might be different this time. you know, obviously what's happened in terms of fed easing has been unprecedented maybe it doesn't work the same way in this bear market. i think the other factor that we need to see resolve itself is just earnings. and when you look at what analysts are forecasting for next year, they're forecasting above trend earnings growth, they're forecasting peak margins. this is in an environment where companies are in the process of, you know, shifting supply chains, lots of inflation, companies are losing pricing power. so i just see this as a market where at 3600 you start to look for really interesting opport opportunities. we're basically there. there are things to buy but there are still a lot of areas

to avoid. >> 3600, that's where you would be a buyer where would you point investors to utility consumers and consumer discretionary, the two sectors higher than the june low. >> neither of those we're a big fan of utility is basically a bond. i think that's a sector that typically gets sold. it's also a sector that laden with debt and i think that's a risk in an environment where yields have increased. i think, you know, consumer discretionary we're underweight and that's a sector where you need to look hard at what the expectations are for these stocks versus what's happening and labor has been sticky and high in terms of inflation consumer discretionary, these are some of the most labor-intensive stocks in the s&p 500 and they tend to get hurt by labor inflation. and what we're seeing is that while pricing power is starting to decline for some of these

companies, labor is still remaining relatively high. so i think that's what we would watch in order to get more constructive, a meaningful drop in wage pressure i think, you know, where we see the opportunities -- i would just keep repeating to myself cash is king you mentioned this a second ago. yields are close to 4% that is a very competitive return on an asset class where do you go within the s&p 500? you look for free cash flow yield. and where we're seeing free cash flow yield is still in energy, it's in health care, it's in parts of industrials, but i still think there are a lot of opportunities to load up on high free cash flow i would just screen the market on free cash flow to enterprise value and look for the stuff that's at the of that list. >> let me get you to elaborate on earnings.

you say -- because they're a key dryer driver of stock earnings if it rises by 8%, doesn't that put a substantial floor under stock prices, or do you just question the idea that companies are going to be able to grow earnings 8% over the next year and maybe those earnings are going to decline by 8% >> yes, that's exactly right our forecast is actually a peak to trough 10% decline in earnings -- >> 10% did you say >> 10% >> okay. >> and that's not as bad as a typical recession. we're building in sort of a -- kind of a milder recession we're building in an environment where inflation abates somewhat but not entirely demand starts to slow. that's the risk when you look at

earnings forecast. some of the most labor-intensive sectors that are driven by goods demand rather than services demand have the highest forecast by consensus analysts. and i think that's the area where you might see some risk. and we've already seen those stocks fall off, but i think there's more to go because they're still not that inexpensive. so i think that earnings expectations are just unrealistic at this point. we had, you know, a lot of stimulus that drove the recovery that stimulus is running out consumers are fine, but they're not going to buy as much stuff over the next 12 to 24 months as they did when they were stuck at home getting a lot of stimulus and with no other options to spend their money. i think energy is a sector we want to think twice about. i know it's the worst performer today, but i would buy it. we're long energy. i think there's a floor on oil because of these supply

constraints from various avenues. but i think that that's an area that still benefits from where consumers are spending their money which is services. they're flying, driving, doing stuff. >> we got to leave it there. fascinating conversation and thank you for your sort of out of the mainstream call on corporate profits. i think that's a really -- really a thing to remember thank you very much. >> thank you. the rout isn't just happening here, stocks and bonds are selling off worldwide, the ten-year yield, highest level since 2011 let's bring in president of bianco good to see you. i think people are stunned by how much interest rates have risen this year. are you? >> yes and i came into the year bearish on the bond market, but yet the

returns that you see in the bond market are the worst in recorded history. this is going to go down as the worst year ever to be a bond investor and it's not getting any better what you saw today in the uk was the biggest rise in their five-year note in history. it was up 51 basis points, a half a percent, one instrument in one day which is an extraordinary move you're seeing interest rates all around the world moving up higher and it's just been something to -- a sight to behold, even for a bond barer like me. >> we heard about an hour or so ago, very critical of the fed and basically saying they're going too high, too fast and indicating they're going to stay too long without giving any sense that, you know, they'll be sensitive to the idea of taking their foot off the brake if they

begin to see a slowing economy which he opines we're already beginning to see in some areas, most especially housing. what do you think? >> you know, the -- i think that that's the problem why are rates continuing to soar because nothing is breaking yet. you had savita on a minute ago talking about the consensus on earnings as 8% for next year no one really thinks anything is breaking initial claims are falling, we created 300,000 jobs in the last payroll report so, yeah, we've got the fedexs of the world that are giving us warnings, but by and large, everything is holding in in a world of inflation, rates can keep going and keep going and that's what's bothering the market when things start to break, yields will plunge, i mean plunge, and then you'll know that we're probably near a low so right now, we're in a scenario where good news is bad news as far as the fed goes, i think the fed is trying to make up for

their mistake from last year i'm as critical as the fed, but i think their mistake was they didn't start raising rates last year they waited way too long and they're playing catch up and i think the other thing that people have to think about is this is a persistent inflation this is not a one-time thing because we reopened the economy. it's ongoing it needs to be dealt with. and that's what the fed is trying to do yes, i think this is going to be a very difficult period for investors. >> jim, while the fed has a dual mandate, the significant moves we're seeing across europe, whether it's the stock trading down from its all-time high, bond yields spiking, could that pressure the fed from raising rates by 75 basis points at the next meeting >> yeah, because it could break something. it could break something really bad. the fed wants to slow the economy to bring down inflation.

the problem is there will be collateral damage. that means other things will break too. and you have to look to europe it's so bad in europe right now that the bank of england in august did something extraordinary, they forecasted a recession. no monitor central bank forecasts recessions, just like the fed on wednesday they give you low growth number and we'll skirt by with a soft landing. but they said they're going to start a recession in the fourth quarter which starts next week they know their think economy is in a bad place all of that is a cocktail that could wind up causing a break, something to break somewhere along the line that could change, alter the course of economic growth in the u.s. if not globally and maybe get the fed to change. but that's not happening you. >> you provide a lot of advice to hedge funds, what's the bottom line on how to invest >> i think that they have to consider that this inflation is something persistent and it's

going to take more than one cycle of raising rates to get rid of it. it's going to be a lot longer which means this is going to be a difficult market as we go through this postpandemic adjustment that we've been undergoing now for a year and a half it's not over. it will continue this is not just we'll sell off a few more months and that's the end of it and we'll have a seven-year rally it's going to be a little bit more than that. >> thank you coming up, the dollar threat is the strengthening green back raising the risk of a global recession and could that force a fed pivot? plus, general mills the best-performing stock this week. a longtime market watcher tells us whether he's long or short. as we head into the break, stocks moving to the session lows down there about 740 points we're tracking the sell-off when power lunch returns. personalized financial advice from ameriprise

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welcome back to power lunch, everybody. the dollars index hitting its highest level since 2002 that's creating a global economic threat and it could force the fed's hand according to a new cnbc op-ed. ron joins us now, cnbc

contributor. you say that for the strength of the dollar, raising risks of a global recession and risks breaking the currency markets. explain. >> tyler, you and i go back far enough on this one and i'm sure seema knows about it as well in 1985 the dollar was so strong that the group of nations had to coordinate and weaken the dollar on purpose because it had become such an impediment to global growth in 1994, the fed eased after tightening 1997 and 1998, you had asia and russia and this type of tightening cycle led by the federal reserve with global central banks is creating strains in global foreign exchange markets that could lead us to another point like that which would force the fed and maybe not on this particular issue, but to something breaking in the

financial markets that would turn the fed around. my guess is early next year. particularly if the dollar continues to soar as it's doing right now. >> why does a rising dollar wreak such havoc in other currencies, whether it's the pound, whether it's the peso, the yen. why does it cause such havoc >> it demands on the set of circumstances. during the russia crisis or the mexican peso crisis, they had a lot of dollar denominated debt as their currencies were crashing, their burdens were going up in this instance, we're exporting, if you will, to a certain extent our own inflation by driving their currencies down just as europe, for instance, is trying to fight it britain is trying to do whatever it can do to sustain its economy. and at some juncture, particularly in emerging markets, you do have that risk of external dollar dominated

debt becoming burden some and causing problems that then leads to a developed nation, debt, and a type of thing that can unsettle their inflation-burdened economies that becomes problematic and a risk of a global recession is the type of thing gets the fed to stop, look and listen >> it's interesting, you mentioned the -- back in 2012 when the yen hit a high against the dollar, we actually saw a number of japanese automakers move production to the u.s. to benefit from the changes i'm wondering if we could see the opposite happen if the dollar continues to strengthen. >> we're seeing more foreign manufacturers coming to the united states more for security reasons than for currency appreciation reasons, right? their currency is weak which

makes their products more attractive in the united states. whether we were to offshore is more these days a supply chain security question than a supply chain efficiency question. a different set of circumstances in a postpandemic environment and a postwar environment. i think maybe not. but i do think that the strength of the dollar and the rapid rise in interest rates is threatening the global financial architecture and is going to expose some weakness somewhere at some juncture in the future that creates that breaking point that jim talked about earlier and prompts the fed to stop raising rates. >> what this if that happens -- certainly in listening to chair powell on wednesday, i didn't hear a peep about a pivot or any -- >> you never will, tyler. >> he wasn't letting any air in there at all >> and they never do, right? in 1994 he talks about that engineered soft landing. the only reason the fed stopped raising rates in '94 was that

the mexican peso crisis occurred, a money market mutual broke the buck and the fed stopped. in '97 they were going to tighten, and then there was a crisis >> the stake of that is that if you have that kind of intervening crisis and the fed is forced to pause or led to pause, then what happens to inflation, to its fight on inflation? does that go on pause? if inflation isn't tamed, you've got a huge long-term problem >> you referenced jeremy siegel earlier. he's saying that inflation is collapsing and the fed being behind the curve and rents are going to come down and cpi is going to crash where i part company with jim is that i do not think that inflation is entrenched.

i think it's transitory in the loosest sense of the word being not permanent and we're seeing inflation roll back and the fed has probably done enough to ensure that we're going to see a weaker economy, less inflation the wage question really is around population and labor force growth, not around an overheating economy. i think there's so many moving parts that interest rate policy is not the cure all for some parts of these inflation questions, like wage inflation, but the fed has already done enough to tame goods and services inflation going forward. if they keep going, they will break something. >> all right ron, thank you very much have a great weekend >> you too, thank you. >> good to see you the dow currently down 725 points further ahead between the growing ev demand and supply cuts out of china, lithium prices are spiking q quadrupling since 2021 check out the ev stocks, neo, tesla leading the declines

today. rivian down more than 60% this year as we head to break, cnbc delivering alpha returning in person on september 28th the world's top investors will discuss risk, opportunity and navigating the new market dynamic. you can scan the qr code on the screen you can see it right there or go to cnbc events to gier wl be right back. om 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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let's take a look at markets with less than two hours left in trade. the dow aprils at 25,354 s&p 500 at 3,662 best performing stock for the week is general mills. worst performing stock on the dow, boeing, dow and intel ahead on power lunch, the long and shorts on this market. even amid this market, there are opportunities for investors. we'll uncover the best names to bet on check out names that investors are shorting most, 3m, american rlesaiin, whirlpool and general

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90 minutes left in the trading day and let's get you caught up on markets, stocks, bonds and commodities and some

ideas on what to buy and what to short in the market. first, let's bring in bob pisani who is at the new york stock exchange we're at the lows of the day, bob. and i want to show you a broad indices here the s&p, the mid caps, small cap. you notice something it's all the same. we're down about 3%. that's a sign that this is a very, very broad sell-off. by the way, we tried bouncing a 3, 3,666, we held for a little bit and fell back again. modest attempts to buy but not enough real energy, not enough buying power to bring off the lows the story today is collapse of the commodity complex. energy, metals and mining, some of these big energy etfs, oil services, exploration and production, there's the global energy one, the big one, everything is down 7%. again, broad, broad declines same with the metals and mining

complex. freeport, peabody which is a coal company, century aluminum, down 7, 8, 9%. big cap tech, 52-week lows microsoft, amd, salesforce, that's a 52-week low not for apple. everything down 2.5% anything that i like out there, i like that the vix is finally over 30. panicky levels for the vix this year have been about 35 and people have been wondering, why isn't the vix over 30. i think you get a little more panicky starting to see that when we've gotten close to this territory this year, seema, this is often a short-term low. not quite there yet. but this is i think a big move up in the vix. back to you. >> bob, thank you. >> markets are interconnected. stocks and bonds moving lower today. rick, a big question investors are trying to understand is, how

high will yields go. well, they'll probably go as high as the selling takes them and the selling, of course, is deriving some of its potency not only from the fed but from a variety of reasons that investors have sought to push back a bit trying to pick bottoms and tops in different markets and the two-year is no exception this is the 12th consecutive trading session of higher yields and i'm assuming we're going to close higher since it's up already eight pbasis points notes over bonds, this spread isn't very popular to everybody but traders love it and they use it for a variety of signals. look at it it is the most inverted at minus eight basis points in 22 years and many believe it gives you notions of capitulation. so you really want to pay attention to the knob spread the etfs that represent high

yield and investment grade, here's the hyg if you look past the march 2020 covid affected issues on the marketplace, it is basically at the lowest levels going all the way back to 2009 and the lqd is high grade or high yield junk bodies and the lqd is investment grade. i'm not showing the lqd. but it is below it's march extreme at the lowest levels since 2010 finally, we're all talking about the dollar index but i have to show the chart again. month to date of the dollar index. up 4% for the month and it isn't even over. we settled august at 108.7 a tremendous move and i agree with ron the fed wants us all to do a good favor it ought to globalize its views of the world because the dollar index is really changing the dynamics and they need to keep up seema? >> 'yeah, they do.

oil prices falling along with just about everything else today, down nearly 6% below $80 a payroll and the lowest level since january of this year crude just for some perspective is down more than 7% just this week we also want to take a look at natural gas, down about 12% this week and 25% for the month already, as stocks continue to decline, you next guest says he's concerned about a coming earnings recession and he has a list of names to short and to go long chief investment strategist at piper sandler. let's first start with the names you think investors should buy >> thanks for having me on so, you know, investors want to look for names that are counter sick la call and that are going to be able to hang in there during this global downturn that we're experiencing right now and that's probably not going to end until some point later next year so we like names that have good

profitable fundamentals that have realized earnings and good cash flow. so names like regeneron, general mills, campbell soup, not very sexy stuff, but this is the year you want soup in your portfolio for lack of a better word. >> and names that you're short >> names to be avoiding would be names that are extremely cyclical names that are showing up in our short model as having poor fundamentals and are macro index such as names that have very cyclical profiles, greenbrier companies, boeing, signature bank that's a sample of names in general you want to avoid companies that are very cyclical, that have cyclical earnings and are going to be at risk during this global downturn. >> i want to go back to one of

our earlier guests who said she didn't agree with the consensus view that 2023 correspondent earnings were going to grow 8% i hear you saying exactly the same thing we're going to go into an earnings recession and if you don't have rising profits, it's very hard for you to have rising stock prices. >> yeah, absolutely. i agree. there aren't too many investors that believe those numbers and so we're just beginning the downturn in earnings earnings expectations only peaked in june the market peaked in january and so most of this decline in the market this year has been due to higher interest rates and now that's beginning to collide with slower earnings growth, slower macro data and stresses that we're beginning to see around the world in central banks, currencies. the dollar the unfortunately reality is that as growth slows, bad things

happen and we find out where the leverage is, the excesses are today and after 15 years of zero rate qe forever, i would be hard pressed to believe that there are not a lot of excesses hiding out that we'll discover in the next year as the global economy continues to slow down. >> are companies going to continue buying back stock and would they be tempted to buy back stock because prices are as low as they are or is the cost of capital just too high for them now to buy back stock. >> it depends on the company those companies that have real healthy fundamentals may use this as an opportunity to do that but i think the days of debt financed buybacks are going to be halted for some time. and a lot of that has to do with strong cyclical earnings trends and that's not the backdrop any longer we would expect that to decline. we have a new tax added to those as well. we'll see that pick up but next year it's going to come down quite a bit. >> michael, always great to see you.

thank you for spending time with us today i appreciate it. safety in dividends as the sell-off intensifies investors may look to sectors yielding higher payouts. we all know energy has big yields could health care be a better bet? we'll exam that when we return go. >> announcer: the bond report is brought to you by pimco. a global leader in active fixed income go emerson software. go science people. go breakthrough meds and safe science. go space age welds for super silent cars. go big. or go home. from software that delivers new cures at warp speed, to technology that makes clean energy reliable, emerson innovation helps make the world healthier, safer, smarter and more sustainable. go boldly. emerson. (vo) with their verizon private 5g network, associated british ports can now precisely orchestrate nearly go boldly. 600,000 vehicles passing through their uk port every year.

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looking at the top of the s&p 500 this week. big pharma names are among the least bad. lily higher, j&j, all a little bit lower but only by 1% compared with a 5% drop. let's go to bertha coombs now for more on what might be making health care attractive to investors right now. bertha >> health care has been seen as a bit of a port in a storm, but in a rising-rate environment, the stocks are paying healthy dividends led by the drugmakers which have a yield of 2.6% on average. viatris tops the list with a

5.4% yield gilead has a dividend yield of 4.67 and organon is at 4.3%. a big reason for these yields is the decline in their stock prices two of them hitting new lows yesterday. but when we did a proscreen for above average dividend players with high buy ratings, two names stuck out. more than half of analysts covering abbvie rate it a buy. it's a 3.9% yield and dividend of $5 and 54 a share it's one of the top dividend picks at b riley meantime, almost two-thirds of analysts rate pharmacy giant cvs health a buy at a 2.27 dividend yield, it's

one of the best health services payers right now and its performance is better than most. you can read more about our screen of health care dividends plays on cnbc pro. >> thank you. tyler, we were told health care was one way to play part of it had to do with the dividend but they have pricing power in this environment too. >> people will have really little choice but to pay for -- >> we will pay for health no matter what. still to come on "power lunch" we're going to monitor this market sell-off and today's three-stock lunch. trading some of the biggest laggards are there opportunities to buy the dip? what about names holding up amid the downturn a lot are in the consumer staples space. take a look at general mills, hormel foods and kellogg. all higher today we'll be right bk.ac

time for today's three-stock lunch. we're going to dig into three of the biggest laggards first up is marathon oil down

16%. caesars entertainment off. let's talk to the cio of nation shares let's begin with marathon. why not? down 16% so far this year. >> have tough time marathon has a p/e below five but that's because the p/e is getting killed today down double digits and that's because wti is also getting killed, so p/e is coming down because the e will come down. this is an anti-recession stock. it's a high beta stock tyler, this is really tough sledding in an environment like this i would stay away. >> scott, i believe you're not a fan of caesars either? >> no, i'm not they don't have the asian exposure that, say, las vegas sands does it will be tough for caesars corporations will cut back on travel and entertainment spending that's where the dollar really

is for las vegas p/e at $1.55 -- and i mean 155, means it's really expensive. online sports betting is interesting. the acquisition is $500 to $750 per. while it's interesting, that's not going to pay off for a while. i would stay away from caesars >> let's -- well, that's quite a statement there. and final name is ford >> yeah, this is the most interesting name of the three by far, i think i've been a fan for a while. i've been wrong for a while. i think it's by far the best space in the auto sector i think it's better than tesla it's the best of the ev names and the legacy automakers. p/e of six, forward p/e of six means it's cheap the problem it's getting killed today because the supply chain issues, really mundane ones, they can't get enough of the

oval blue badge that goes on the hood of the car. they can't get enough of other mundane things and that's even affecting their f-150 pickup trucks when they can't ship those because of supply chain issues they have a real problem f-150 pickups are profitable >> if you can't get the badge for your car, wow. that's really a telling statement. let's talk about the market more broadly, scott where are we headed? we know markets get volatile for a while. there's a seten syllable word i won't use now. people are worried about interest rates and the two-year yield at 4% tells you all you need to know about stocks. people will say if i can get 4% a year for two years and the risk-free treasuries and why do i want to put money in stocks right now and get a little bit better return but take a whole

bunch of risk. until we get a catalyst, something that says the worst has passed, i think we'll be lower to sideways for a while. >> scott, thank you very much for your insights today. we always enjoy having you on. scott nations. >> thanks, tyler the nasdaq is down 2.8%. electric vehicle stocks sinking along with the rest of the market tesla down 4%. spiking lithium growing into a key issue. we'll look into it plus, as we head to break, check out autos and airlines which are all down double digits this week power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools

make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. welcome to ameriprise. i'm sam morrison, my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors the garcia's, love working with you. because the advice we give is personalized. hey john reese, jr. how's your father doing? to help reach your goals with confidence. my sister told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial.

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that's helped drive up the stock price of producers, and then albermerle is up and analysts and experts expect supply won't be able to catch up in the next decade the prices could be sustained for even longer. citi analysts say there are environmental permits and in california there's even a new lithium extraction tax making it harder for newcomers to enter the market so supply is expected to stay stagnant while demand moves up automakers are pushing out like you mentioned, seema, even more ev models and government policies remain supportive these are all -- it bodes very well for demand for lithium. on cnbc pro we screened names expected to outperform with a buy rating and upside price target of at least 20% i have three names on the top of the list for you lithium america, battery maker micro vast and standard lithium.

you can see the only one in the green just over the last year or so but if you want to know other names head to cnbc pro for more from a sector that should benefit. even elon musk says there's big money to be made in lithium. >> turning to the broader market, the nasdaq below 11,000. what's the key level to watch? what are you hearing from traders? >> in terms of predictions, i will not put key levels but the major concern is how aggressive the fed is getting in november and that's weighing heavily. you're seeing it across the board. the fed has dual mandate, unemployment or keeping full employment and inflation the fact they're willing to sacrifice employment and keep raising rates is a major concern contributing to the sell-off we're seeing in technology across the board today and it seems like it's only going to get worse and that's the sentiment. it is extremely negative and crib t contributing to the sell-off. >> if lithium is in such demand

and ev is driving it, how come two of those three had major losses for the year? >> because these are high-growth companies that still, many of them, don't have their mining capabilities out yet, so that would be supply is still not able to get out. so that's the major issue. some of the producers may be producing but not at full capacity or one of the companies, i'm fepgti forgettine name, has a mine in brazil and that keeps getting delayed the potential in the near term is high. some still have issues when it comes to getting the supply out there. that's why you see the discrepancy. >> all right, kristina partsinevelos, thanks very much. let's take you into the last hour of trading with this note on the dow, the s&p and the nasdaq there's the dow down 812 points. >> new low >> i think that's a new low for the afternoon, right, seema? there's the s&p, 3649. the nasdaq down 330 points, almost 3% there.

energy lagging, all of the s&p 500 sectors. >> worst performing stocks right now, tyler, marathon oil, hess and we were told energy, long energy a. floor below oil because of the geo politics that are taking place >> we just heard from scott nations saying no-no on marathon thanks for watching "power lunch. >> "closing bell" begins right now. it is an ugly finish to an ugly week for the bulls, the dow and s&p falling below their june lows both indexes now down around 5% just this week the most important hour of trading starts now welcome to "closing bell." i'm mike santoli in for sara eisen. david lebovitz from jpmorgan, thomas hoenig, charlie bobrinskoy, mona