though, brian, meme stock traders. that's the more speculative side of the market. as vanda put it, they have gone back into hibernation and are unlikely to make a comeback anytime soon they measure that through options and social media data. to put it into context, and just how many people we're talking about, in just two years of the pandemic jmp estimates 25 million new brokerage accounts were opened. sully, back to you >> we like to have them in the market kate, thank you. and thanks for watching "the exchange." "power lunch" begins six seconds ago. we'll send you the bill for those six seconds. welcome, everybody, to "power lunch. along with contessa brewer i'm tyler mathisen and here's what's ahead this hour the path to recession a long-time market watcher says a sharp economic downturn is going to get harder and harder to avoid. but he's finding some safety and opportunities in a few names we'll hear which and why plus, former treasury secretary larry summers calls the uk tax

cuts utterly irresponsible and he warns of a possible contagion. we're going to look at the potential global ripples in just a few minutes. contessa >> hello, tyler. hello, everybody a midday market reversal has sent stocks deeper into bear market territory you're seeing the dow industrials off 3/4 of 1%. the s&p 500 off half a percent hitting its lowest intraday level since november 2020. and the nasdaq is off by a quarter percentage point driving the action here, rising yields the five-year yield hitting its highest level since 2007 the 10-year hit its highest level since 2010, closing in on 4% and the 30-year yield, look at this, hitting its highest level since 2014 you've got the five-year now at 4.2, the 10-year at 3.97, going up, and the 30-year at 3. 8. with the bond market flashing warning signs our next guest says room needed to avoid recession has narrowed

bob dole is c.i.o. at cross-mark global investments it's good to see you, bob. you had the chicago fed president saying to cnbc europe that he's cautiously optimistic that we can avoid recession. so why do you think that the path to do so has narrowed >> i think every month that goes by where the fed says we're going to raise rates, we're going to raise rates, we're going to raise rates and the economy slows just narrows the window i'd hoped months ago that there was a chance we could have a soft landing, but we know they're few and far between and i think it's going to be tougher i suspect 2023 will experience a recession. >> and when you're looking at this, are you more concerned about recession or are you more concerned about inflation? >> that's a great question i think the stock market has actually begun to shift from total transfixing on inflation, now worried about recession. there are a lot of signs that the inflation number is coming down, and now there's worries

the fed gone too far, will they go too fast, and the meantime those recession fears via earnings estimates are beginning to plague investors. >> so how about stagflation? remember that, bob you and i are probably old enough to remember it from the '70s and '80s. and back then we sort of thought i guess maybe a little bit that we were going to be able to grow our way out of it. stagflation a worry. and can we grow our way out of whatever -- >> i don't think we can grow our way out of it. i do think inflation will come down so more, tyler and we'll be looking at 4% to 5% on an annualized basis by the end of the year you but real growth will be non-existent corporate earpings have hung in there because of pricing power unit growth has fallen but pricing has enabled revenue growth to remain more robust than many of us guessed. >> you have all these companies talking about how they are parking cash on the sidelines right now.

do you think that's a good plan? and at what point do you start to enter back in where do you see a bottom, bob >> so picking bottoms we know is impossible for most of us mere mortals, but with a market this oversold, sentiment now so negative, i'm beginning to buy a few cyclicals, raise my beta a little bit certainly still on the defensive side so for example, beta from .9 to .93, maybe i'll get to .95 because we'll get another bear market rally but i don't think we've seen the bottom yet >> so when you say cyclicals, you're talking about companies that would benefit when the market -- excuse me, when the economy turns up, right? and that could be a good long time away. >> that's probably right, tyler. but if we get another bear market rally, you know they will be at the head of the pack they always are because they're big betas and big exposure to the market and i hope i'm smart enough to buy them right and turn around

and sell them right. i'm going to rent these stocks, not own them >> how much farther down do you think -- where are we in this market correction or bear market >> so my view has been all along that we need to test the june lows and obviously we are in price. but we're not seeing the vengeance of selling that normally comes with that test. so we'll see there's no playbook to say these things have to happen. my view is absent a deep recession if we have one, i don't think it will be deep, i don't think we have a lot lower to go in the stock market. among the reasons why i'm doing a little shopping. >> all right so bob, you've got three stock picks here in front of you elements health, mastercard and general mills. what do you like about them? >> the trio has above-average earnings growth and persistence. above-average quality. i think that's still key in this environment.

this is the former anthem obviously. i think the hmos have high single-digit revenue growth, low double-digit earnings growth we haven't had a cycle in that business in quite some time. it's a scale business. they're getting better premiums, better unit growth, better enrollment i think this is a pretty good story. it's not expensive it's about the same multiple as the market mastercard's another -- i want to own names that can benefit from a secular growth pattern as well as the opening of the economy. not expensive. the stock's down a lot coming into ten times earnings, believe it or not. the big problem with this one and visa, which we also like, is technically it looks horrible. and the third one is general mills. as you know, they reported earnings not too many days ago they were stellar. the stock is at an all-time high so buyer beware on that standpoint but i think people eat their cheerios even in a recession

the company's putting p some good gains >> we know in some of the lower end of these markets that they opt instead of cheerios, they go for the store brand, and it will be interesting to see whether general mills holds out there. bob doll, thank you so much. appreciate your time >> thank you >> former treasury secretary larry summers warning that the uk is losing its credibility following the announcement of sweeping tax cuts last week. in a series of tweets summers said, "i was very pessimistic about the consequences of utterly irresponsible uk policy on friday, but i did not expect markets to get so bad so fast. he added that i acurrency crisis in a reserve currency like the pound could have global consequences the british pound recovering a bit today after hitting an all-time low against the dollar yesterday. the ten-year uk gilt rising to its highest level since 2008 here to discuss the ripples, michelle caruso-cabrera, council of foreign relations member, cnbc contributor and a dear

friend michelle, good to have you with us >> it's a pleasure to be here, tyler. >> you bet it's not often you see a currency like the pound cratering and interest rates rising -- it feels more like be not a reserve currency but a third world currency >> an emerging market currency you see this frequently happening in emerging markets. this recently happened in turkey, for example. larry summers is spot on the reaction was quite dramatic. it's akin to what we used to call the bond vigilantes remember it's a phrase coined by edward yardeni a long time ago, a guest here on cnbc, who talked about a moment in the '80s when it looked like the u.s. was going to go on a very kind of inflationliry path and bonld yields started to rise dramatically and bond vigilantes, they can't do that, it's going to be too expensive. the market vigilantes have done the same thing to the uk in very p rapid fashion both with the sharp rise in interest rates and also with their currency to say what you're doing is very inflationary it's not just the tax cuts

larry summers is right it's the tax cuts but it's in addition to the tax cuts, it's that they're going to cut taxes and then spend dramatically in order to subsidize energy costs which are really hurting consumers there. they announced last week that they're borrowing, the uk was going to do in one year alone was going to go up 44% in one year that's a lot that's why the markets reacted what we're showing you there, the uk is spending 6.5% of gdp to subsidize and shield consumers and businesses from the cost of energy by the way, the rest of europe's going along even though it's -- >> so you've got the uk simultaneously cutting taxes, spending more to subsidize energy, and helping people get through a long winter, and borrowing to do both right? they're borrowing to do both so isht rates are going up and at the same time you have

the bank of england tightening interest rates so you've got two things that seem to be in exact opposition to one another spending and tax cuts on the one hand and tightening monetary policy on the other. where does this end up for the uk and for the rest of europe? >> well, absolutely, you're right. they're working at the cross-purposes the bank of england has had a very rough week as they see what's been happening because what the government is trying to do is going to be very inflationary the thing the bank of england is working against. look, at some point the markets force you to cry uncle right? that's why we're referring to them as vigilantes at some point if you're going to subsidize energy and you have to borrow to subsidize energy your energy is getting more expensive because you pay for it in dollars and the dollars get more expensive every day. and then your interest rates are going up so to finance that borrowing is even more costly at some point you just can't do it and it breaks so they'll have to pull back on

the program. they'll have to do something if we continue to see markets react as negatively as they are. >> i think that there's a lot of speculation right now about what the new italian prime minister is going to do of course we've seen what a financial crisis looks like in greece and italy as well is there a contagion risk here for the uk the uk which was a stalwart of europe and europe's economy, if they're heading down a path where there's speculation about an imf bailout, what does that mean for the smaller economies >> yeah. so the italian prime minister, even before she was elected on sunday, had promised to show more fiscal discipline than was originally what the markets were worried about. if she wasn't convinced of it then she'd better be convinced of it now based on what she's seen happening in the united kingdom. by the way, the united kingdom, their gdp ratio is in the 7% roughly. in italy it's at roughly 125%.

they have a lot less room to maneuver in italy. at the same time i was just in italy last week speaking with a lot of executives there. how concerned are they about a debt crisis? and one of the executives said to me like listen, the prime minister of italy is kind of like the governor of california. you know not in dharnlg of the currency a lot of the spending and all the decisions happen somewhere else, on the other side of the continent or the other side of the country. we're a big country, we're really important, they're not going to let us fail, but at the same time what she does isn't nearly as important as what the bloc decides to do as a whole and what they're going to do >> all right, michelle, thank you -- so good to see you. michelle caruso-cabrera. >> good to see you guys. always a pleasure. >> thanks. likewise >> thanks. >> coming up, folks, shares of howard hughes falling along with the s&p real estate sector this month. the ceo of the real estate development firm will discuss the outlook for the industry and

the impact of rapidly rising rates. before the break, shares of hertz trading higher on a partnership with bp's electric charging unit, who will put thousands of charging stations at hertz locations more "power lunch" in two. flexshares are carefully constructed.

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and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. welcome back to "power lunch. i'm dominic chu. as the major averages remain in negative territory at this hour there are a few bright spots out

there. we're talking fertilizer those makers like cf industries also in the leadership position in the s&p 500 mosaic, by the way, not far behind up about 3 1/2% compared to 6 1/2% for cf. both these names are rebounding after underperforming the broader markets and the materials sector for the past month. each offer about 20% or so in that time frame. but both stocks are firmly in positive territory on this year to date basic after commodity shortages and the war in ukraine before them and russia sent them soaring in the first half of the year watch those materials companies and fertilizer makers, contessa. >> dom, thank you for that the 30-year mortgage rate breaking through 7% today. the rapid ascent a major reason why the housing market is slowing. the broader real estate sector on pace to fall about 13% this month. shares of real estate development firm howard hughes down about the same as it deals with rising rates across its residential commercial and retail properties. howard hughes ceo david o'reilly

joins us now because you have these mixed use communities, david, you have a sense of what's happening in all sectors of real estate really. give me your sense of how rising rates are affecting your business >> well, rising rates are clearly slowing home sales but i would tell you that this cycle and this downturn is so much different than the last and despite the headlines, and i hear it all the time, and listening to diana on cnbc it's why i carry my umbrella, because i think the sky is falling but it's yet to hit me on the head because this dynamic is so much different. the last downturn of the global financial crisis we had meaningful oversupply. we built more homes and household formation for ten years. and that exact inverse is true today. we have 4 million less homes on the ground than we have of household formations over the past ten years, and we're not close to meeting that demand couple that with the lack sf land inventory that home builders own, specifically in the warmer, less expensive markets like houston, phoenix and nevada where we see either seven, nine,

or 11 months of inventory on hand, about half of what i would say is equilibrium >> well, houston says look, we're going to build up, not out, so we don't need more land, we just need more skyscrapers, i guess. and they don't have zoning laws. so you can build wherever you want i was just at a conference last weekend, david, where they said these zoning laws are keeping us from thinking about how do we use, i don't know, decrepit malls that are just sitting empty and we should be able to turn those into apartments and affordable housing for people. are you finding yourself in a position where you need to innovate or think differently about how to use the property at your disposal? >> we're constantly thinking about what's next for the consumer and we're building within our communities to meet the demand of those consumers. and whether that's higher density multifamily apartments, smaller homes with home offices or any other innovation that's meeting those demands, we're moving forward on. i would argue that part of the reason why these markets in the sun belt are warmer and less expensive and remain affordable is that innovation has been

forward and approvals have been easier to obtain and municipal financing is easier to achieve all the financing that we're seeing in terms of the water, sewer and infrastructure we put in the ground are largely reimbursed through municipal bonds in these markets, which we don't see in some of the more expensive markets. >> are you seeing, david, any change -- let me come at it a different way. are rising interest rates making you think differently about the kinds of projects or the scale of projects that you will be undertaking over, say, the next five years because the cost of money is higher? >> it absolutely makes us rethink all of our new development decisions, making sure that we can maintain that premium on what we're earning on the capital invested above our cost of capital, which is clearly rising what we've seen to date is increasing rental rates specifically in multifamily apartment buildings that have more than justified that, so we're able to continue to invest

and develop out these communities. we've always sold land to home builders just to keep up with underlying home sales. so as those home sales start to slow with these higher rates, we'll sell less land to make sure we remain equilibrium in our markets. >> you're coming to us today from the tin building by john george which is in pier 17 this is a new concept market, bars, restaurants, built on pier 17, which got wiped out during hurricane sandy. we're approaching the ten-year anniversary of that. i want to ask you two questions here you've invested nearly 3/4 of a billion dollars in this property are you starting to get concerned about whether you're going to be able to recoup a return on that investment? that's part one. >> no, not at all. in fact, we see the vibrancy in the foot traffic here at pier 17 and the sea port hit record levels even that pre-pandemic levels. our concert series, we've never seen more tickets sold or a

greater number of shows. this food hall opening tomorrow night on the ten-year anniversary of superstorm sandy adding what is we think a catalyst for all of lower manhattan in terms of a culinary destination is going to continue to attract more and more traffic here and traffic's the key to unlocking value in new york city we've seen it time and time again. and when you have a world-class destination with great concerts, incredible restaurants and a food hall that's never been built in manhattan before, we'll definitely continue to see that foot traffic >> i guess if the big banks are ordering people back into the office it's icing on the cake for you down there in the seaport. part two, because you've decided to rebuild right on the water and it's a beautiful location, how do you factor in the risk of another hurricane coming through? we know that we're overdue for a category 5 how do you manage and mitigate the risk to that particular property in your investment there? >> sure. and it's a great question because we didn't invest 3/4 of

a billion dollars, as you said, contessa, without thinking through the resiliency here. the pier has been built up above the flood plain, completely rebuilt and raised above the bottom of pier 17 where the utilities are stored are inside a submarine hull, completely water tight. the tin building where i sit today which is the jean george food marketplace, was moved just east of the river so we could raise it above the flood plain without hitting the fdr. so we think we've done everything imaginable to make sure we have complete resiliency for that storm, which is inevitable and will come >> if somebody would hit the fdr, it wouldn't be all bad, david. you know it just wouldn't >> i drove down it today and seeing that tin building come to life is amazing. >> also i got a little inside look there the kitchen staff is on the fourth floor they have an amazing view of the fdr. >> wow nice >> david o'reilly, thank you so much looking forward to coming down there. it's just a quick stroll for me. >> yeah, you live downtown

>> thank you for that. appreciate it. >> can't wait to see you both. thank you. >> you know the interesting thing, tyler, is how many companies now, if they're going to make an investment in beautiful waterfront property, they have to consider what the insurance costs are going to be and how much they have to self-insure and how do they protect that investment. it's got to have -- >> here it's by raising the property above the flood plain >> we saw the same thing with wynn resorts in boston having to put the casino floor up above the 100-year flood plain so that they could protect it. is there a chance -- >> go after some of the barrier islands on long island and you see the same thing the new houses are all being built 12 feet higher, 12 feet off the ground, or thereabouts anyhow, there you are, return to office the working lunch. no more virtual meet sngz today's working lunch is back in person we're going to sit down with the ceo of a company taking on the buy now pay later business plus, another update on the 2022 stock draft. delano's dynasty has negative

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welcome back to "power lunch," everybody. cathie wood may not be having a great year when it comes to her funds but that isn't stopping her from starting a new one. ark invest to launch a new actively managed venture capital fund that will invest 70% in private firms, 30% in public companies. the fund targets individual investors with a minimum investment of just $500. cathie wood told "squawk box" this morning that they're hoping to offer investors something they've not been able to access before now, ark's flagship innovation fund has been underwater all year it is down 60% year to date as of now let's go to bertha coombs for a cnbc news updates. hi, bertha >> hi, tyler

here's what's happening at this hour in russia -- russian-held parts of ukraine counting of votes has begun in the referendums, or so-called referendums on joining russia kyiv and the west have condemned the referendums as shams initial results from ukrainians in russia show overwhelming support. president putin is scheduled to address russia's parliament on the referendums on friday. those lawmakers may consider annexation legislation as soon as next tuesday. russians seeking to avoid fighting in ukraine continue to flood out of the country georgian officials say tens of thousands of russians have entered their country since putin announced efforts to recruit more soldiers for the war in ukraine kazakhstan says nearly 100,000 russians have crossed the border in the last week and the u.s. is seeking allies on a global plastic

pollution treaty that would challenge existing efforts to craft such an agreement. this according to reuters. the u.s. treaty would focus on pledges by individual countries, a group of 20 countries including britain, canada and germany advocates global standards, restrictions and bans on plastic back to you. contessa, tyler? >> thank you, bertha ahead on "power lunch," a department of justice dog fight. the doj holding hearings on the jetblue/american airlines partnership amid growing concerns it's hurting competition. what could this case mean for the industry and any future mergers or partnerships? that's still ahead on "power lunch. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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all right, folks, we've got 90 minutes left in the trading day and a lot of action left to come we want to get you caught up on the markets. that will be stocks, that will be bonds, commodities, and airline competition put to the test let's begin with bob pisani who magically appears in the screen over my shoulder hi, bob. >> isn't that amazing? higher in the morning, lower in the afternoon. we saw this yesterday. yields up, dollar up only sector that's really up is energy you remember these comments

about the leaks in the nord stream 1 and 2 pipelines in europe a little disconcerting there's talk it could be sabotage we really don't know what's going on but remember it's highlighting that energy insecurity over in europe you see these energy stocks moving up. phillips 66. some of the refiners are also moving up on this news we're watching that hurricane in -- that is forming just outside of florida and believe it or not, there's exchange traded funds for that look at that fema, the procured disaster recovery etf actually exists it's a basket of stocks that might benefit from disaster relief programs. what would be in this basket well, obviously, like a home depot, for example a lowe's are in it cummings is in it. floor and decor companies. companies that make flooring are in it. you can see most of them are fractionally on the up side. finally i want to note the vix is starting to get very interesting. we're getting into quasi-panic territory. i'd say 35 and above is quasi-panic territory. that's where we were at the june lows you can get up as high as 80 during the financial crisis and

during covid but generally 35 or so, that starts getting interesting and usually it's hard to stay up there for long periods of time again, we have no idea if it's a bottom but at least short term a little more panicky is a good sign. >> quasi-panic thanks, bob. now to the bond market it is digesting new housing and confidence data. and rick santelli is tracking the action hi, rick >> yesterday's two-year 44 billion fives. and neither of the auctions have gone very well and the consumer confidence data was definitely a bit better than expected but over the last two weeks let's keep the following charts all at two weeks, we've seen some huge yield gains but yet investors aren't showing up. look at a five-year over two weeks. we basically increased yields from 3.60 to 4.20, around 60 basis points, hovering at a 15-year high yield and the auction was a d. it was not very good and if we look at what's going on with the 10-year, a very

similar structure, up 60 basis points in the last couple weeks from 3.40 up to nearly 4% today. 15-year high and if we look all around the globe we see sovereign debt doing the same thing because central banks are all pretty much trying to remove stimulus, raise interest rates bund yields hovering at just over 2 1/4 they're up 55 basis points in the last two weeks gilts up about 115 basis points this week. almost 1 1/4%. 14-year high and finally who's the beneficiary of all this? the dollar index it's gone from basically 1.09 plus to around 114 over 3% just in two weeks alone. 20 years since we've seen these levels and it looks like there's even bigger demand growing across the globe on a daily basis tyler, back to you >> all right, rick, thank you very much. we've got a big move in oil prices today a mysterious leak across the pond at that nord stream pipeline and pippa stevens is at the commodity desk covering it all

for us hi, pippa. hey, tyler a lot going on in the energy space today. let's begin with oil seeing a slight rebound after yesterday falling to a nine-month low the softening dollar and output cuts in the gulf of mexico are supporting prices. although crude is closing off its best levels of the session 78.73. brent crude around 86.54 a gain of 53%. europe is the key focus after three separate leaks on the nord stream pipelines the unexplained damages are raising questions around sabotage, with nord stream calling all of the leaks occurring at the same time unprecedented. there's no immediate impact on europe's gas supply since nothing was flowing through the pipes. remember, earlier this month russia's gazprom cut supplies to europe via the nord stream 1 and the nord stream 2 has never carried any gas after production was halted earlier this year but it's important because it

raises questions about future flows. european natural gas jumping more than 20% at one point today. reuters also reporting that gazprom could sanction ukraine's nafto gas, jeopardizing gas flows, tyler, that are still going through ukraine. back to you. >> thank you very much pippa stevens reporting. now to the skies we go, or rather to the courtroom. the department of justice's antitrust trial against jetblue and american kicks off today, with the government arguing that the alliance between the two companies will stifle competition and lead to higher prices the outcome of the trial could have big implications for jetblue's proposed takeover of spirit so what happens next with the companies and the stocks with us is helene becker, senior research analyst at cowan. helene, welcome. good to have you with us take us through what is going on here it is american and jetblue combining to jointly i guess sell seats to compete in new york and boston most especially

against united and delta >> exactly what you just said is true it's an alliance similar to the alliances that the u.s. airlines have with a lot of international carriers the sky team or one world or star alliance as an example. and this is just more of that. instead of international markets, though, it just covers specific markets in the northeast. and it enables american and jetblue to cross-sell on some flights that enhances competition in the markets because it gives customers choice neither airline could necessarily expand into these markets alone. but together they can offer more service. >> so what does the combination do to the competitive balance in, say, boston where i think delta is dominant?

united is not particularly a present player >> exactly so jetblue has -- i think jetblue and delta are pretty much the same size in boston and a lot of that service for jetblue goes to florida. they've been growing that market for the past decade. and every time they add a city they become more relevant. but between when they started and when they filled out the footprint there's not a lot of choice, right? to your point, delta is the biggest airline there. and then you have jetblue and united really what they're doing is either flowing over showing or over newark. and then you have the international airlines of course doing that and then american is just not very big in boston this gives american a presence in kind of the upper northeast so think markets like maine and

upstate new york massachusetts, which would obviously cover boston, rhode island, maybe eastern connecticut. and then flow that traffic over jfd as well to give them exposure and to also give jetblue customers more choice than just jetblue domestically and then other international carriers >> as you say, jetblue is sort of concentrated on routes from the east down to florida, down into the caribbean american obviously a more global airline, if you will helane, thank you very much. we appreciate your time today. >> sure. thanks, tyler. >> helane becker >> well, when times grow tough, how about a change in strategy why one startup is proposing save now buy later for today's working lunch we're sitting down with the ceo that's flipping that buy now pay later business right on its head and as we head -

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squeezed as inflation rages along, the economy slows, credit gets more expensive. and as we prepare to enter the holiday quarter next week, jon fortt brings us up close with a startup ceo who is flipping the buy now pay later idea on its head, jon. >> yeah, tyler daniela carenti is co-founder and ceo of real. it's a save now buy later company that lets users earn rewards while saving up and budgeting for big purchases. she grew up in venezuela, the daughter and granddaughter of entrepreneurs. and when we first talked she told me she believes the next wave of fintech apps will tap into consumer psychology not to market to us but to help us save >> we see kids from really young age engaging with technology in ways that i would never have imagined when i was a 7-year-old right? and understanding that especially in the space where i am, which is financial technology, historically financial technology was very

functionality driven but that was for a different generation i truly believe the big winners right now and in the future are going to be the players that understand consumer psychology and are able to build products that deliver to a customer that's constantly evolving >> and daniela joins us in studio today it's our first in-person working lunch. welcome. you got a seed stage startup that's really pretty countercultural in fintech right now but at an important time because debt's becoming more expensive. and you come at this from an interesting perspective. you started out in design and marketing, right >> yes i started in marketing but really that background gave me the basis to focus on consumer psychology and understanding consumer psychology, which is the angle that we're coming at >> i'm curious it sounds to me like your concept depends in part on delayed gratification. i don't think of americans as

particularly wanting to delay gratification. but maybe younger people are more inclined to do that than us baby boomers >> when we talk about instant gratification, there is also a price point associated with instant gratification. it's easy to have instant gratification for a $50 purchase, for a, you know, $60 amazon purchase. but when it comes to larger purchases, which is really the space where we play at, which is aspirational purchases, then people tend to delay gratification already. so we're not shifting behavior we're leveraging the behavior that is out there where people are obviously spending hours on instagram -- >> so larger purchases like what give me some examples. >> i'll give you a couple. so furniture right? like travel. like shoes like if you're going to have kids, why are you going to pay for the stroller up front if

you're going to see the baby in a couple of months so those are some examples of things people save for >> it's interesting that robinhood kind of used gamification in the app to get people to trade. you're trying in a way to use gamification on reel to get people to save, to feel good about building up to a purchase instead of doing it now when it might cost them more later >> yeah. if you go to check out in any website, the two options that you have are either you have the cash or is debt driven and i know you were talking a couple of minutes ago about inflation being at 8.3%. right? so if we look into the market, no one was really capturing the power of people's cash flow, which is so important, especially at young ages, where people are looking to understand their finances and we saw there was a massive business opportunity to come in and optimize cash flow toward purchases in a fun way >> alas, we have to leave it there. daniela, thank you very much for being with us. we appreciate it good luck with the venture

jon, always good to see you. >> always good to be with you. >> thank you very much and over to you, contessa. >> all right, tyler, still to come today's stock draft edition of three stock lunch delano's dynasty, amazon and draft kings. which do you think is holding the team together? the answer might surprise you. as we head to break, throughout hispanic heritage month we are celebrating our cnbc teammates and contributors here's lido advisers' chief market strategist gina sanchez >> 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 in 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 we can have the maximum impact wow, we'res of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

welcome back. day two of our week-long stock draft update david robinson is the only one in it the green, up more than 3% today. we're looking at delano's dynasty, portfolio down 7% let's bring in delano to discuss his team's status. how do you feel about amazon, was that a good pick for you >> it was a solid pick still feeling good, still bullish. main reason i'm bullish is the growth prospects despite what's going on economically the beauty of why i picked amazon is because you want that versatile company that actually, if you're seeing softness in the e-commerce business, they have other companies doing, aws with the advertising business also grow, if you look at the tech giants, it was amazon and google that had strong advertising businesses

and they've tightened the belt as a company and i think they're still looking for acquisitions i'm still bullish on that one. i think we'll be all right. >> are you worried about the consumer, though are you worried the consumer's going to pull back on their amazon spend >> yes, that could be a concern. that's where you'll see more softness potentially in the e-commerce side of the business. as we go towards the holiday season, maybe there's a little bit of support there, but if you look at the others that are starting to be bigger parts of their business, i think that's where you actually for investors get a little bit of juice. >> let's move on, shall we, to draftkings >> draftkings is the one i was picking to be more of the surprise story they still have that strong revenue growth story obviously, as a growth company that's been hurt incredibly since we started the year, but they bounced back since mid-june

and held a decent level of support. if you look at the whole picture, the big picture is why i like this company. if you look at their -- roughly, let's say they have 25% market share. if you have optimistic projections on where the sports betting market goes in 2025,% 2 2026, $25 billion with 30% operating march gip, maybe they're able to turn a profit there. you're looking at the total adjustable market with draftkings as a growth story as well as legality that's being brought into other states. >> yeah, like if california legalizes it and voters will get their chance to look at that in november well, it could push off profitability for a while because of the marketing spend we'll watch that hypoth hypothetically, if you had a draft today, what additional stock would you pick >> yes additional stock, third round, it would probably be walmart, as

you were mentioning. just what consumers are doing until the end of the year is going to be a little bit -- you know, the sentiment has changed. if you're looking for a company with relatively strong demand because of stable margin, and have done well with cost control, even though inventory is a little bloated, i would probably go with walmart to round out the picks. >> delano, continued good luck in the soymptom draft. the number of home buyers back out of contracts hitting a record number in cities. we're going to go under the microscope and we want to show you shares of ryder systems on halt on reports apollo global exploring takeover of the company. there you see ryder systems moving higher on a moderately down day

- oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - [narrator] yieldstreet: private market investing. welcome back to "power lunch. 30-year mortgage breaks break 7% today. dom chu rejoins us with a closer look at those numbers. >> maybe it's not shocking, contessa, tyler, if the cost of homeownership is going higher, the cost of financing is going higher, people might get cold feet, saying, maybe i don't want to make this lifetime commitment to what could amount to be the biggest purchase of my life.

data according to redfin shows current levels in the month of august we're showing this 15% cancellation rate. people wanting to back out of their agreements to buy homes. to put that in context, pre-pandemic it was averaging roughly 12%. at one point in the months of the depths of the pandemic in 2020, it got near 17%. that was record high in terms of cancellations. in a more normalish type setting, 15 represents the record highs where are these cancellations happening? the top ten markets where people are canceling the most are in some of the hottest markets going into this real estate cycle. places in florida like jacksonville, orlando, tampa play places in the southwest, arizona, nevada and in texas overall. those are the highest cancellations. the lowest cancellation rates are in some places where the demand has been huge for a long time we're talking markets in

california like the bay area, san francisco, san jose and the new york city metro area as well so, interesting data from redfin on that. >> fascinating thank you, dom appreciate that. folks, be sure to check out delivering alpha tomorrow. i'll be there. i won't be with you, sadly. >> you know what, sometimes you have to ditch me for the big - >> hardly. >> movers and shakers. thank you for watching "power lunch," everybody "closing bell" starts now. another early rally attempt failing on wall street the dow giving up nearly 400-point gain the most important hour of the trading day starts right now welcome, everybody, to the "closing bell. i'm melissa lee in for sara eisen. it's been a wild session with stocks trading in a broad range. comments from chicago fed president charles evans helped drive an early pop in stocks particularly when he said he was a little nervous about the lagging data >> there are lags in monetary policy we've moved