more panicky buying protection right now than they are several months out that's not like normal think about it you want more time period. you want more protection of course, you have uncertainly over time. >> yeah. it's a key point you make. there is so much to parse out in this conversation. that's going to do it for us here on "squawk on the street. "tech check" starts now. >> good morning. today the nasdaq is outperforming for a change is it a bottom or just another head fake? we will talk about that. is it time to be aggressive or passive? why one guest is a buyer today and another says wait it out billionaire orlando bravo will sound off on crypto. interesting setup this week. >> it was. and we will kick things off with a look on tech stocks. the key number there is

10-5-6-5 while some things head lower with amazon and google now 40% off their highs, other people are calling for a bottom here. mike santolli joins us with here nasdaq coming off. it was up as much as 10% what's going on today? >> yeah. a near approach to those june lows, very widely watched. sometimes the first time it tries to get down there it bounces almost by reflection we're seeing a little benefit of that still very much remains to be seen i like a three-year look at the nasdaq 100 so the yunjune lows are right he i like to check out this october 30th of 2020 level which is right about where we are or just below where we are right now it is a little above 11,000. it also coincides with a 200-week average, a slow-moving longer term uptrend line, thousand day moving average,

which is also right around 11,000 in theory, we have the entire uptrend from even before the covid crash that now perhaps is nearby could be support could be a little bit of a moment of truth. the key when you have a retest of the major indexes is to see what's worked better and what's worked worse since that date here is june 16th. you see some of the subcomponents of the overall tech tape, how they have performed. and in general, you have actually the s&p 500 is done about two and a half percent this is from the start on june 16th but software and semis have underperformed since that day. whereas, apple, we keep talking about how it is essentially apple against the world in how it's been holding up better, and that's given more support to the nasdaq 100 and to the over all tech sector indexes as well. under the surface, you have had an undercut low for the software and semis area, which in theory they should bounce a little bit

more less discussed is biotech. it was an underperformer through much of this year. take a look at the year to date chart of the s&p biotech index here you have a may and june looks like a retested low there. you are well below that right now. biotech moves to its own dynamics not so much about the macro and what's going on in broader growth stock investing it is interesting that took its pain earlier and seems to be fairing just a little better. >> great temperature check thank you. now a head wind that's important for tech recovery is the strong dollar. the dollar index now trading at its highest levels in 20 years, going back to 2002 steve joins us with a look at the impact of big tech. >> yeah. a lot of these big tech names have a lot of exposure in the countries where the dollar is the strongest and they're already protecting themselves against this effect. one of the key concerns

executives warned about last earning season, let's break it down by name and give you an idea of what each company is expecting. on the apple front, no price increases in the u.s., but the iphone 14 is more expensive in the u.k., germany and japan. apple announcing increased app prices throughout all of europe and south asian and south american countries starting next month. meanwhile, apple also opening up iphone 14 production in india this week, earlier than usual to keep that supply up. and the over on meta, speaking of price increases, meta raised prices of its virtual reality headsets to fight this inflation headwinds, also coming out with a new and more expensive headset next month, warning that revenue will take a 6% hit this quarter from foreign exchange headwinds. meanwhile, over at microsoft, already saw the strong dollar hurt them last quarter, shaving four cents off eps and maybe

more pain to come with amy hood saying last earnings fx will be tougher through the end of this calendar year but improve in the first half of next year. the question now will be if microsoft starts increasing prices throughout europe to protect their margins. and with amazon and alphabet, those two names sounding less dire than their peers. not getting too specific but saying to expect, quote, an even larger head wind from foreign exchange in the september quarter. amazon's cfo saying fx will hurt revenue but noting impact on operating income is, quote, not significant. guys, earning season is coming up and we are expecting to get more color from these executives. >> it is earnings season thank you very much. our next guest says to bet on future growth despite their 70% drops year to date co-founder and managing partner,

it is great to have you with us. good morning to you. >> great to join you thanks for having me. >> the key question which i think everyone is just trying to figure out is how do you value these companies with potentially very good growth prospects but little to no profits what should they be worth? >> i think you have to look at the long term. these companies are clearly growers and there is a long-term potential for the businesses shopify is a great example i think there is a lot of growth potential there. e-commerce is only 20% of retail i think it will continue to grow as well. i think there is a lot of future growth in the business and they're still scratching the surface in terms of the potential. with higher interest rates that kind of reduces future cash flows. but i think overtime the business is going to thrive. there is a lot of growth opportunity for the business they also have a good underlying profit profile, so the companies break even today, but there is a lot of potential for growth and profits over time.

it is really a growth opportunity. i think the markets overreacted in terms of discounting growth i think when you are looking at tech stocks, you have to think about future potential more than anything. >> but did they overreact during the pandemic in those prospects for growth i know you pointed to shopify, but take a coin base revenue declined 64% in the second quarter it lost $1 billion, what are you buying here? how are you valuing it >> coinbase is an interesting story. they're very exposed to trading changes in terms of crypto and obviously with the crypto market cap really dropping overall, their revenue has taken a hit clearly. and i think over the near term, they will still below, say, where they were last year. but you have to think about the long-term potential. about 13% of americans today own crypto i think that's going to grow definitely over time the penetration is going to grow coinbase is obviously one of the biggest exchanges. they have multiple businesses within their portfolio and they're pretty aggressive in

terms of how they think about future potential again, i think it is more of a long-term macro debt there when you think about crypto, what you found over the past decade is there has been three major drops, and typically those drops are 70% to 80% of the market cap of the total market, so they're very dramatic drops but over time, the growth is far above that over the long-term. and, so, i think that's where we're seeing now is, again, a near term drop they have been heavily impacted. over the long-term, i think more and more people own crypto not to mention practical applications of crypto and that will also capitalize their growth i'm a long-term believer in their potential. >> more practical use cases for the average person, and i wonder what do you think that's going to look like because a year ago you were talking about buying pizza with it. >> yeah. >> i wonder, is that trajectory, that use case trajectory still intact >> yeah. there is a couple areas in terms

of applications. we have one company called scion dig digital. you have a lot of people who own crypto today that want to do certain things with it, for example, get a loan, buy a car, buy a house. it inenables them to use it in practical application like that, to get a loan. i think there will be a lot more applications than there are today for crypto i think you are just starting to see areas of growth. i think the industry needs to really focus on that i think there has been a lot of hype and potential and not really a lot of concrete business models, but i think that's changing. i think there are a lot of founders out there that are working on real projects i think you see a lot of decentralized finance, probably the biggest area but there are a lot of interesting projects there you see in technology these waves where there is the hype cycle. a lot of early adoption. and then a crash and then the resurgenceis typically where you see real companies come out of. i feel like that's going to

happen over the next couple of years. >> i want to go back to publically traded stocks, growth stocks in particular. >> yeah. >> on the filters that you are using to decide what's worth buying here because i still kind of get flashbacks to the early 2000s where the same arguments could be made about, well, these things have come way down. but then it took years in a lot of cases, even for good companies to come back from the levels that they felt. microsoft one example. innovation along the way how do you decide what's a more likely grower, what are the metrics that you are using to determine health and the ability in a reasonable time frame to grow and not for the stock to have to react. >> yeah. that's a great question, john. i think there is a couple different elements what you have seen over the past six months is dramatic drops 70%, 80% of market cap so it will take a while for these companies to get back to those levels we think a lot about what is the next couple of years going to look like and is the company a

good buy based on fundamentals we think about whether a company is profitable or on a path to profitability. and then we think about long-term potential adoption so i always go back to what's the current market size and what is the company's penetration and then how big did that market get over time and what could be their penetration could be when you think about amazon, e-commerce penetration was very low, maybe less than 5% of retail and amazon was a dominant player there but, again, the market was small compared to today where it is 20% of retail and their growth is cattized by overall market expansion, right, as well as their growth in terms of ownership in that market i think you can apply the same frame work to that thinking about, again, how big is the market going to be, what is the growth rate of that market, when does it get to mass market as well so today there are certain markets where only the new entrants, so to speak, are using it, but over time it becomes a

mass market opportunity. and then the last piece again is quality of business model. at scale, is the business model sound? so what are the gross margins of the business what are the underlying profit margins, things like that. in those analysis, you could tease out the winners. >> we certainly hear that amazon analogy a lot. we have to remember, though, there were a lot more ciscos than amazons, companies that never regained that peak good to have you. still ahead this morning, the outlook from the week. cyber security names across the board continue to fall don't go anywhere. "tech check" is just getting started.

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so far it is about restraint. lots of people are read already in a deep recession. >> i see blackrock deal with coinbase, you know people are coming to buy. >> i think the market is caught up with the fed. but now the incoming data will

lyft downgraded to neutral today over skepticism to deliver topline growth in line with competitors. cites rising insurance costs beyond q3 as a risk factor stocks trading around $13 a

share. a long way frits ipo at 78 requester. they do move their target from $16 to $50, so quite a revision. >> yes, indeed we will turn to cyber security hacks on uber putting focus on the sector in recent weeks and part of a recent trend out with a report showing a 50% surge in threat campaigns year over year. let's bring in crowdstrike co-founder and ceo for a closer look george, great to have you. i want to talk a little bit about crowdstrike's business first, though. you got this security platform that allows customers to manage kind of point solutions for security, even do a try before you buy sort of motion that lets you upsell how do you see customers be behaving differently in an economic slowdown if at all. >> great to be here. one of the things we see and we hear time and time again from

cios and other executives is the need for consolidation people want to spend more with vendors that can consolidate where you can take out two, three, four different products and with our modular format, we have over 22 modules today, and we can replace other modules or products out there and consolidate that spend that's one of the key things we see in a challenging macro backdrop. >> you also recently did an acquisition. you have been inquisitive. does that mean it is a more attractive environment in which to do that because you have a way to turn some of those technologies into modules that customers will upgrade into? is that a growth strategy for you? >> absolutely. when you look at the current environment and even the private markets environment, the valuations are going to, you know, be down or flat. and it's going to be a while, i think, before a lot of these private companies can get out in the public market. so we see that as opportunity. we got a great company that we

acquired which is focused on finding external vulnerabilities in companies and it makes sense to then create it, you know, recreate it in our platform as a module and offer that to our customers and, you know, very, very warm reception from our customers after we announced that acquisition. >> george, good to see you have you seen any slowdown or greater scrutiny from any of your customers in the recent weeks or months. cyber security is seen as much less vulnerable to a softening and spend and macro backdrop, but is that playing out at crowdstrike? >> i referenced this at our last earnings call. the deals tended to be a bit bigger we were focused on consolidating that spend when you have bigger deals, you will have more approvals and it will go higher up in the chain and we call that out but in terms of security and the need, we had a great interview

at our falcon conference with the cio of salesforce, who is a customer, and it was just focused on the fact that security is just a board room topic. it is something that's incredibly important and it is hard for organizations to scrimp on it. >> greater scrutiny because of the size of the deals are growing larger, not necessarily because of the economic softening; is that right >> when you think about the economic backdrop, there will always be additional scrutiny across the board but we have seen as the deals get bigger, you will just have more sign-off. that's just part of the nature but when you have a great product and you have 150% roi in the first year, we think we're selling value. we know we're selling value. and that's a big part of our efficient sales machine we have and how we have been able to grow so quickly. >> george, you note in a report that overwatch tracked a 50%

increase in interactive intrusion activity year over year now, it's not like last year was slow so what is driving this? what is your sense of that we talked about, you know, intruders taking more of a platform approach, being more economically interested in kind of harvesting data and using it for economic gain. is there actually economic growth in the intrusion department, even as there is an economic slowdown in the broader economy? >> well, absolutely. as times get tough, you know, the bad guys tend to come out even more. when you think about something like ransomware as a service, you can actually buy a subscription, just like a software subscription to a ran someware provider who will help you try to install that malware, activate it and then each

individual e-crime group can monetize that back to the operator that's how this industry has grown. so there is just so much money involved it doesn't take a lot of skill when you can actually buy these services and with enough time and patience and, you know, enough fishing e-mails and the like, you're going to have some level of success in many companies that are underprotected, which is why we have seen it grow so quickly as a service. >> yeah. troubling development for sure george, thank you. >> thank you so much. tech names, public and private, continuing to wrangle with layoffs and cut backs instacart reported letting go of staff. the head of a potential ipo where the company has to convince investors it can maintain the growth and maintain a profit amid the weakness there is a lot about the financials we don't know that has only been reported

reportedly had a profitable quarter. we are trying to read the tea leaves here. if you look at this relative to other tech companies like robinhood or coinbase, this sounds like a slowdown, which they eluded to earlier on in the year again, until we see that s1, guys, it is hard to know what position instacart is in. >> yeah. profitable quarter, cap or non-cap, right >> it's a big question. >> and if they, in fact, do an ipo, are they going to get enough cash, enough capital to continue to fuel the business or is this going to be mostly to cash out existing employees? it seems like having the cut before it, they could use the cash. >> yep still raising capital, and it will be interesting to see whether the ipo market wants to reward growth as has historically been the case or whether profitability is part of the equation

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welcome back to "tech check. checking in a couple hours into trading here dow has lost some of its early, seemingly momentum we were agreeing for a little bit. but now down 200 points. we were getting close to 3,700 on the s&p are there names worth buying here don chu has a breakdown. >> when it comes to the market downturn, we have seen it is about whether valuations are attractive or if we think they will fall further than they are right now. traders are starting to look at whether earnings in the forward 12 months will be at a point where maybe the price today is a little more attractive take a look at the s&p 500

versus the investco qqq. they are driving the indexes here but as things stand right now, one critical component of that particular set of indexes is the technology sector, the biggest is the s&p 500 at current levels right now, you can see the s&p 500 technology sector on a forward price to earnings basis is roughly around 19 times that level. now, at the highs here, we were at 28 times forward earnings and then the lows in 2019. it was roughly 14 times those earnings so we're towards the middle of that range but still at 19 times. are there names trading at a discount to that level well, out of the 76 stocks in the s&p 500 tech sector, you have roughly 42 of them trading at multiples of 19 or below. among the names you might recognize are adobe software after that recent sell-off advanced micro devices trading

at 14.5 earnings ibm 12.5, cisco systems 11.5 and 5.7 for hewlett-packard. so those five names are amongst the 42 again, out of 76, trading below market multiples for that sector if you want to know what the rest of those 42 are, head over to my twitter feed i listed all of them for you in your perusing pleasure. >> so interesting to see adobe just making it under that ceiling. if "making it" is the right term dom, thanks. >> good morning, john. the british pound is holding on to gains after sinking to a record low against the dollar. concerns about tax cut funded by government borrowing also drove british bond yields higher ten-year guilds touched their highest yields since 2008. in germany the four leading

economic institutes reportedly expect a recession next year high inflation fed by natural gas prices is eating into consumers buying power, a key economic indicator has fallen for a fourth straight month to its lowest level in more than a decade oil prices, meantime, are recovering after hitting nine-month lows. the strong dollar and concerns about a slowing global economy helping fuel that drop west texas crude near $77 a barrel involved the trade. it is now up at about $79 a barrel and naz car great jimmy johnson says he's retiring again, sort of the 47-year-old seven-time nascar champion will step away from full-time racing indefinitely won't race another season of indy car but he still plans on doing some bucket list events including the 24 hours of lamon. it is hard to step away, karl.

>> it's funny. serena williams, maybe now this. retirement is fluid. investors, meantime, continue to look for places to hide amid the market scenes. our next guest says to ride out the wave and cloud megan shoe joins us this morning. it is great to have you. i'm fascinated by this thought of yours that the time to reduce risk is probably over. >> yeah, karl. i think that's right i mean, you are looking at an s&p 500 that's down about 23%. retesting the lows if you look back historically at a mild recession, you know, defined by a moderate increase in the unemployment rate, the average pullback has been about 24%. so we're basically there and i think, you know, for all the negativity out there, it is always hard to see what could turn the story around and the market is goingto turn around before the story turns around.

so we are avoiding getting too defensive here you are starting to get that mild recession more adequately priced into markets. i don't think we're getting any sort of a currency crisis or broader spillover risk priced for that i think you see the market go potentially significantly lower, but that's still not our base case and we're staying invested at these levels. >> you do point out that if we begin to price in some kind of contraction on earnings, it's likely to be mild in your view because of the balance sheet strength of corporate america and this well-known idea now that they have started to hunker down in advance. >> yes this is a really unique set of events because typically it would be very unusual for the market to bottom this much ahead of a potential recession, if you are assuming that any potential recession will come in the first half of 2023

this much ahead of the fed pausing from their rate hike campaign and moving towards easing but this is different because the fed has so well telegraphed what they intend to do you do have the market pricing in a peak fed funds rate of call it 4.6% as of today. we think that is pretty darn close to peak hawkishness, which could present some opportunities going forward for parts of the market that have been beaten down. >> hey, megan, but is the market also, you know, pricing in a potential pivot at the end of the year and would that be too optimistic i noticed as well, you kind of mentioned your base case scenario that the recession will be moderate. but the markets started to think it could be a harder landing, more severe. >> it's definitely a risk. and actually, a recession is not even yet part of our base case we think it's pretty much a coin flip whether we do get a recession. but if you look at the backdrop

coming into this, you know, inflation has been the big concern, but consumer balance sheets are still in pretty good shape. corporate balance sheets are still showing elevated cash levels and i think that plays into what is going to work and how long it is going to take to get through this i mean, we could have a recession where the unemployment rate goes from 3.7 to 4% or 4.1% that would still be a very bold labor market by many standards as you think of the spillover effects and how deep it could be, not having those areas in excess and potential bubbles that need to be worked through the system, that's what usually takes a long time for recessions to play out. >> megan, you sounds so much more optimistic than our previous guests on what the markets have been doing over the last week. it is refreshing in a way if you think this is the bottom but what makes you so confident as well that the fed will not overshoot. you pointed to the strong

consumer we have heard that from some of the consumers we have on "tech check," but is that just another shoe that will drop in the coming months as the fed chair says he wants to see more pain or needs to see more pain from businesses and consumers >> yeah. well, i'm more optimistic today than i was in the summer when the whole narrative that was driving the market with the fed topping out at three-and-a-quarter and then starting to cut rates, that didn't feel right to us. so the fact that we do have the market pricing in an aggressive fed at this point, we do have the market starting to price in a mild recession, i think it suggests that going forward for those long-term investors you could certainly have more pain and if you are looking for earnings, you know, the earnings shoe to drop, so to speak, with a pullback in earnings next year, then there could be further to go. but we think we are definitely closer to bottom than to the top. if you look out a year from now,

you are going to want to be in the market and you are going to want to be in some of the areas like tech that have been beaten up so much and tend to lead in and out of the recession. >> well, we like our shoes to stay standing. no dropping, please. but i also wonder about q4, right? and this demand slowdown that we're seeing and the potential ripple effects of that there has been so much attention paid to just interest rate hikes and the impact on stocks the actual slowdown seems to be taking hold both for consumers and for businesses if that goes farther than some expect, we could be looking at an entirely different start to 2023 how important is the christmas season, the holiday season to your base case >> well, the fourth quarter is definitely going to be important, as you point out, from a consumer buying power perspective. and they do have less purchasing power clearly today than they have in prior holiday seasons.

but as we look forward -- and there is definitely a potential with midterms coming up to see a relief bounce around that. i think earnings will be very important because we haven't really seen a big reset. but the environment is changing so rapidly and we have seen that in terms of the really quick aboutface that some companies whether walmart or target or fedex have had to take when it comes to providing updated guidance even from just a few weeks earlier. so i think this could be really this earnings season could be big on headlines but, again, i think we're pricing in a good deal of that potential weakness, and it is not guaranteed that the market has to trade negative on a headline twice. >> and finally, megan, in terms of energy, a lot of losses recently in west texas, nat gas, gasoline, even european energy, but you are remaining long on

that space, right? >> that's right. we have a slight overweight to energy stocks. if you look out over the next year, we think the supply environment is going to remain quite tight. you know, we have gotten the oil market and energy markets more broadlypricing in recession risks here in the u.s. and globally but, you know, if we look at the china zero covid policy and the potential, not guaranteed, but the potential for that to relax a bit, the iea has a 2% cut and a 6.5% growth next year. so there is a potential swing there to support energy. >> right interesting. megan, that's a lot of work we just did going through some play books. appreciate it very much. see you soon. >> thank you so much. well, the tax man cometh and he's coming for tech why they could see their tax costs skyrocket next year. that's after the break

don't go anywhere.

dow is down about 186 here the pound, obviously, had a busy morning. there was some speculation there would be a statement from bank of england in fact, they did say they're monitoring financial markets very closely and would not hesitate to change rates if needed quote, the bank is monitoring developments in financial

markets in light of the significant repricing of financial assets we'll keep our eye on that and its effect on the global asset prices meantime, let's turn to amazon, ranked alongside berkshire, two of the names hardest hit by the inflation reduction act. set to take effect in january. researchers at the university of north carolina estimate it could cost the company as much as $2.8 billion, at least according to numbers from 2021. very interesting as the impact is getting closer and closer. >> yeah. it links taxes closer to publically reported profits and it could take into account things like stock-based compensation hard to argue that's fake because it could lead a company paying the new tax. >> yeah. i think it is also possible, though, this disincentivizes companies like amazon from spinning out something like aws because then it is more likely to be extra profitable, perhaps

and, you know, you might not want to report so many profits if you are going to get taxed on them base d on that three-year period it's interesting to see how that affects investment planning. still to come, apple the only tech stock still profitable. but is the name running out of steam? cnbc returns in person this wednesday here with the world's top investors have to say about navigating this market scan the qr code right there on your screen to register. we'll give you a moment to do it "tech chat" is back in a moment.

to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world.

michael burry says the work from home boom may have doomed the job market he returned to twitter writing, quote, the white collar employment bubble is bursting right before our eyes. the longer it takes the redundancy to disappear, the more permanent the decline will be work from home will be seen as a culprit. karl, i kind of agree. the problem is people can work from home, but managers aren't so great at team building remotely >> that's certainly, you know, team building or in a famous interview more than a year ago, not good at innovation either. >> this may be very millennial

of me, but i would argue maybe not the culprit but the scapegoat there. we'll see. meanwhile, watch twitter today lawyers representing the company are set to depose elon musk ahead of the october trial that will decide if musk must go through with his announced purchase of twitter. scheduled to be deposed today at a law office in san francisco. and this building stock has held up better than most the last few months up 5% since may. stay with us we'll be right back.

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ics phone 14 in stores now. as consumers jump at pro models, apple is poised perhaps to cash in the average selling price projected to hit more than $900 per unit for the first time ever per counter point research our next guest is maintaining an outperform rating on the stockment joining us now welcome. i remember when $1,000 iphone seemed crazy, but apparently inflation and other things considered, not so crazy any more my main question is how much room does apple have to pivot in the quarter and shift production toward the higher-end models, or will they remain supply constrained as demand seems strong. >> you know, i think there will be a supply constraint through other quarters i doubt they will be able to resolve it given the fact that it is actually the most successful

phones apple had in the last seven years now. very remarkable stocks on that basis. the one thing they would say in their defense is i suspect they knew this was going to happen. if you look at the way it is staggered, the average phone they have is phone, is going to come out next week so i think they're staggering this enough they should have enough supply. so far it seems the demand is outpacing the supply they have. >> if i remember correctly, last year holiday season sales suffered somewhat from some stores being closed, and i think particularly the watch might have suffered. how much might the comps benefit from the upsell opportunities from people going in to get a phone but might wake out with more >> that's a really good point. we're seeing that folks are gravitating toward the higher-end models of the phone we're also seeing attached rates for things like apple watch, air

pod pro is at an all-time high i do think the ecosystem, the platform is holding up really well and so far from the initial survey work, the variables are fairly high right now. >> we saw research suggesting as well that the demand for the watch ultra is robust. do you think of the watch as a method of onboarding into the ecosystem or do you really have to own the phone first >> that's a great question my gut is, for the most part, people need to own the phone first to get the benefits of the watch in its entirety. the one area where i think the watch will resonate a lot with folks, if you have potentially younger kids that you want to have some way to interact or communicate, without giving them all the social media that comes on a phone, apple watch becomes a phenomenal solution. so you could be convincing kids to use the ios devices earlier

and then the other devices they have. >> that's interesting, as a gateway, perhaps, through the kids while we have you, i wanted to ask about ibm. you were talking about potential m&a, $20 billion in dry powder, but you think they could potentially be gearing up for a big deal here? >> yeah. listen, ibm has talked about th liquidity, and the cash generated over the next three years could be $35 billion so there's a lot of liquidity there. i suspect the team has had a lot of success and feels confident post their deal, which i think a lot of folks were skeptical about. it's ended up being a successful deal for them. i do think there's a second deal the question is, do they do one large deal, which would be logical given the valuation correction you've seen in the software assets, or do they do a bunch of smaller deals i do think the appetite would be

to do one larger deal versus multiple smaller ones. >> well, that dollar goes a lot further in the markets these days that's one area where inflation is not exactly working in the way one might expect thank you. >> thank you. throughout hispanic heritage month we are celebrating our cnbc teammates and contributors. chief market strategist gina sanchez's story. >> the benefits of being hispanic is that it is a naturally inclusive culture. you can come from many different racial backgrounds and be classed as hispanic. the challenge to that is that it can create divisions and a lack of cohesion within the community, and so the hispanic voice sometimes comes out fractured or doesn't come out as strong in one direction or another because it represents so many people.

so i think as a culture and as a community, we have to think about how we're going to channel our voice and what we're going to channel it toward so that we can ha t mveheaximum impact.

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nasdaq did have a 1% gain earlier this morning, has given back a lot of it as we continue to see a lot of the losers centered around some media and biotech, as we continue to see just whip saw action ndx down 10% in ten days. >> a little bit of a bounce today. but as you said, giving up most of the gains one more thing before we go, co-founder, orlando bravo making new headlines after an interview saying that he's disappointed to find that the sector is, quote, not as ethical as private equity to date bravo has been a strong proponent of crypto, investing $150 million in the ftx last year and building stakes in four other businesses in the sector he is pausing his firm's investments in other crypto companies and didn't mince any words on why he said i've gotten to know the crypto world a little bit more

and some of the business practices don't rise to the level of ethics we're used to in private equity with your investors and your customers and your community, and that has been a bit disappointing. interesting sign of the times, guys, that big private equity guys are looking at the ethics in crypto. but certainly its been on a wild ride this year that's all i can say. >> it has. and it makes one wonder why sam bankman freed feels relatively comfortable to try to bail out firms. who knows what the actual mechanics of that are, carl. but private equity, however you might feel about it in general, those that are good at it have built their reputations on being consistent and having a model that they operate under, and we'll have to see whether crypto develops that same kind of reputation over time. >> yeah, and orlando bravo, you could probably argue -- i know david rubinstein gave an interview to the tooimes a few weeks ago in which he gave bravo

quite the shout-out as being in best in the new generation of investors. we'll see how it plays out in the years to come. overall it's not going to be a busy week for earnings we're going to get nike and p paychex and it's just a smattering it's going to be much more driven by fed speak. we mentioned earlier today some 22 fed speakers just in the next five sessions. >> the earnings this week will be important nike is a big consumer name. we talked about this a little earlier on the consumer has been very resilient, especially at the higher end so what nike says is going to be pretty key before the earnings season gets into full swing in a few weeks from now. >> are investors listening to fed speak now? for a long time it was la, la, la but now with the mark reaction, maybe investors are listening as things get more volatile we'll see. >> yeah, morgan stanley's note today, mike wilson, who has been

of course directionally bearish over the past several quarters literally writes in the note today, can you hear me now his note is it's taken time and much more simple language from the fed, but clearly beginning to figure out that the fed is serious about bringing inflation down. >> pain, one syllable, four letters. >> exactly let's get to dom chu in the half. >> thank you very much welcome to the half time report. it's the last week of a volatile month and quarter as well. stocks re-testing their june lows how much lower can this market go from here are we close to a bottom maybe that's in sight. it's been in sight for a while we'll debate that and what to do with your money coming up next our investment committee today is joining me, and joining me on set the jim labenthal. th