reports now. they report the revenue, not how many devices they sell and that's where people are going to be looking for growth and if the pros are selling as well that boosts their revenue. >> stock had a tough year, down 17%. got used to apple going up appreciate it. thank you very much. thank you all for watching "the exchange. you're not done with me. i'm going to join contessa brewer for "power lunch" which begins right now. >> hello, brian, everybody, welcome to "power lunch. i'm contessa brewer. here's what's ahead. pay attention to the yield patty the new tina as the 10-year yield broke through 4% for the first time since 2008. is this the start of a new era investing? we're delivering alpha stanley druckenmiller sees a hard landing in 2023 j.p. morgan says inflation is here to stay

orlando bravo shares his thoughts on the market and what's next for crypto >> because if you've got alpha don't keep it to yourself. you need to deliver. don't keep the alpha stocks overall they are rebounding nicely this afternoon, bear market bounce, whatever you want to call it, driven by a retreat in yields. yields down, stocks up this after the bank of england announced a temporary bond buying plan. they were supposed to sell bonds. they started buying them back. a little quantitative easing coming back. the dow and nasdaq standing in the way of the screen, getting higher 437 points, nasdaq up 1.3% all kind of about the same if you watched "the exchange" like a minute ago, you would have heard steve covac talking about apple. apple down about 3%. you heard the report that basically said there might be issue with iphone production cuts because of sales for the iphone 14 pro. debate it all you want either way no debate that the market is certainly reacting

apple shares are down 2.8% another dramatic day in the bond market for a different reason than we've been talking about lately the 10-year yield dropping in price since 2020, it broke through 4% earlier in the day which is the first time that has happened since 2008. now we're at 3.74. some wild moves here let's get to rick santelli for more on the moves and what is happening here and what is happening overseas because it kind of feels like the bond market in 24 hours got flipped on its head, rick. >> oh, it did because when i was on the train coming in, the big question, people were e-mailing me and texting me on, was how much the yields had risen. when was the last time you saw yields this high the big story they're down 21 basis points in tens and everybody going when was the last time we were down 21 basis points in one day. the high yields it's

unbelievable so let's go through it here's the two day of 10s sully was talking about. by the way, it's an outside day. we have a higher yield than yesterday and a lower yield than yesterday. does that mean something to some technicians it means trend reversal probably a shorter term trend reversal look at it, it certainly seems like maybe a one-day capitulation trade two day of gilts, settled at 4%. two day of bunds which have settled around 212 the difference between the two is about 189 basis points. go to the charts that is the widest difference between those two european yields have been in 32 years it has credit implication, makes the usc and the bank's job so much harder despite the fact that they took a play out of mario draghi's book, whatever it takes, the spot out of the u.s. playbook in terms of printing, printing, printing the u.s. and the revenue

currency matters a two day of the dollar index. the reason i'm showing this because it's going down. the darling of the globe during all the negativity the last month or so has been buying going higher in fact, it's going down temporarily. it gives you a clue as to the impact the bank of england's purchases even though only 1 billion pounds has made and how long it will last is the big question. >> because they showed they will support the market and now the bond market knows it and the government will step in. they caused the problems, solve the problems amazing what governments can do. thank you very much. your first guest this hour says the market is transitioning from being called a tina, there is no alternative, to a patty, or pay attention to the yield. names aside, the markets are turning and your investment strategy needs to change with it mike is senior portfolio manager at franklin templeton. the peppermint market patty, any name we want, pay attention to the yield. i can get a 12% yield somewhere

but it means the company is probably going out of business how far down the risk spectrum are you willing to go? >> yeah. call it what you will. we're in a new world i mean, jug think about yields coming off on the 10-year yield, 3.7% yield on the 10-year was almost unthinkable a couple years ago. it left no alternative with most debt around the world negative than equities. well the world has changed and we're likely going to be in a period of higher rates for longer a complete reversal of the lower longer language we've used over the last decade. what that means is, you're going to have to be more selective when it comes to picking stocks. so what worked over the last decade in a period of a goldilocks economy with low volatility, low rates, loose labor markets, was growth and essentially you wanted to buy growth and innovation at any price. now you have to focus on a couple different things. profitability. matters again. we're going to be in an environment with shorter market

cycle, need prftsibility in company resilience to navigate the environment and dividend yield matters again. dividends do well in periods of market uncertainty especially in periods of inflation. back to the 1970s and 1940s, high inflation dividend yield with about 60 to 70% of the total - >> is this the 1970s all over again? please say it's not. i love ac/dc but the market stunk and didn't do anything for ten years >> i'm hoping it's not the 1970s. feels more like the 1940s where you had major supply disruption, a shift in the economy back to a normal economy and it led to fits and starts. there's still opportunity for equities we think, particularly within the equity space, more defensive oriented areas of the market, consumer staples like general mills, if you look at parts of the health care sector like johnson & johnson or even utilities like duke energy where you can still get 2.5 to 4%

dividend yields. equity market participation, these are the types of companies that are going to be rewarded if equity market uncertainty continues >> if you think it's like the 1940s i'm waiting for brian to say his favorite musical artist from the 1940s. >> duke ellington. next. >> thank you for that, brian you're the second guest in two days to suggest general mills is a good play right now. i'm curious tooen even though it's a consumer staple and people have to eat and they want to eat their cheerios or what not, are you at all concerned that consumers, especially at the lower end, are going to begin to choose store brands and the conventional wisdom about the safe plays may not hold? >> it's a great question and something that has to be watched closely. look, the reason things like utilities and staples tend to rally is because they tend to be a little bit more elastic, people tend to have to eat to your point they can choose what they eat. it's going to be very important

to focus on earnings and profitability. make sure that companies that are able to pass through some of those inflation costs to the consumer, as of right now it looks like that's holding firm, but that's something we're going to have to watch closely and why profitability matters. a lot more today than it did over the last couple years. >> mike, it's good of you to join us. thank you for the advice appreciate it. a morning of investing heavyweights at cnbc's delivering alpha summit. stanley druckenmiller said he would be stunned if there was no recession. j.p. says there's opportunities everywhere we're going to hear from bravo co-founder orlando brav cro with leslie picker at delivering alpha. hi, leslie. >> hey, contessa it's been a wide ranging conversational, important day here at the delivering alpha conference i'm glad to be joined by orlando bravo. as you mentioned perhaps we can start macro

a lot of talk about recession, the impact of inflation. when we caught up in berlin you said there was more pain to come in the tech sector i'm curious where your head is at right now with regard to tech and just the potential for a recession broadly? >> leslie, first of all very nice to see you. thanks for having me every single lp is asking the question and every investor is, are you seeing a recession now in software? do you see it? the answer is with roughly $20 billion of revenue in our portfolio, we currently don't see any slowdown we can tell it's coming. we can tell purchasing managers are getting in to the deals and slowing things down. they're making more methodical decisions. we clearly see a slowdown and software will not be immune from that it will be more resilient, but bookings numbers will slow down. >> resilient why >> it has a better business model. when you have almost 100% of your revenues being recurring,

you're in the that dependent for your business and your profitability on the next sale you can get through that and the second thing is, overall, the customers in business to business software they make money with your products your products solves their inflation problem because it allows them to take on labor and the former productivity and the roi from buying your products are so high they have an economic incentive to buy the product. they may take two quarters off from buying or may take six quarters off, but ultimately they will come back because it is in their economic incentive to do so. >> i want to ask about the buyout environment and how this all kind of plays a role here because over the past week, we saw, you know, over the past year we've seen a big slump in lbos but financing has become more difficult with the citric systems deal wall street set to lose about half a billion dollars in underwriting the debt that will

fund that takeover are you seeing some pain in the financing markets right now? how is that impacting the prospect for deal making in this current environment? >> there is pain in the financing market you mentioned one deal the bigger pain is in arr loans, when people borrow on revenue because they don't have profitability yet and the profitability is yet to come through a buyout which most of our industry does really well. those numbers are down from four times revenue to 2.5 so there is pain in that financing. it's very important in the tech buyout, especially over the last five years, it's not about the debt it's about the equity. most of the deals at the current valuation environment have been done with a third leverage and two-thirds equity. so if you want to do really big deals in software the challenge is actually getting the equity check from your lps and community and other coinvestors. the debt comes along in less of a form but in a more healthy way than it did before.

>> do you think, though, given that you're seeing as you mentioned the signals that a slowdown is coming, is that a buying community for you if you do have the equity to underwrite such deals or is that -- does that give you pause? >> it is such an interesting time right now because on the one hand you have the public software stocks and most of the index is unprofitable. we have spoken about this before when we said growth at all cost is over, investors want profitability. if you add to this a slowdown in the bookings numbers, what is a company worth that is slowing down at the top line and is not making money so there is more pain to come in the public markets on the other side of that you have what you mentioned the buyout industry and we're a significant player in that our industry earns the return. we are into buying one of the market leaders that's currently not profitable but has a sig dant market presence and great

product we can take to 40, 50% margin if you do that and this conference is called delivering alpha, if you can deliver that operational improvement it's a phenomenal time to buy and there are so many deals in the market. there's so many public companies looking for a solution to their income statement and to their future given how difficult it is in terms of the valuation environment >> one area where you are apparently taking a pause is that in the crypto space you've been somewhat active in the past i think it was last year that you announced delivering alpha you were a buyer of bitcoin, a big enthusiast of crypto and now you're taking a pause. you've been kind of turned off by what you're seeing with regard to due diligence in the crypto ecosystem, some of the crypto companies you've been looking at buying. what have you seen in these discussions? >> my personal view on crypto, and on bitcoin, long term, remains the same who does not want a peer to peer

decentralized system that is another value that can compete with stores of value and make those more efficient through competition. also, crypto is a place where so many young, smart, creative people are doing some really, really good and interesting things now, in the short term, crypto has two issues and we have seen that more and more one is there's a lack of transparency that needs to be fixed. lack of transparency and accountability and at the same time, given that industry is so young, people are not only figuring it out, but you also get the land of promoters where you get a lot of promoters in that over time will be weeded out because they will lose money but right now those are two challenges i would say we're slowing down, not taking a pause one of the things we like to do is we like to make sure what we have on the ground is successful before we double down on it. so we're slowing down on it, but

we're still looking for the premier assets we can partner with managers of our ethical standards that are incredible and operational and have the same set of values we do in a more measured way. >> perhaps not stopping altogether but betting more. >> that's right. >> orlando bravo we appreciate you joining us we know you are -- just got off a plane from puerto rico where you were helping communities there in the aftermath of hurricane fiona. thank you for taking time to join us here after those efforts. we appreciate it. >> thank you i'll send it back to contessa. coming up, florida's property insurers are losing money and that was before hurricane ian hit. the ceo of usaa live from his control room where his team is monitoring the storm joins juice ubs says the holiday shopping season is deteriorating.

they will give us the names he thinks is most at risk. a look at shares of doccusign laying off 9% of employees. you can see there, the market liked it there you have lyft imposing a hiring freeze. again, investors like it doccusign up 4%, lyft up 1.8%. power lunch will be right back

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hurricane ian has made landfall as a category 4 and the damage estimates vary widely one disaster modeler estimating ian could cause $45 billion in damages and to make it one of the most expensive storms in the country's history. it would be roughly comparable to hurricane andrew in 1992, adjusted for inflation core logic looks at all the coastal homes vulnerable to storm surge in the cone of uncertainty we saw and system it would cost $258 billion to rebuild those coastal homes assuming they were all devastated the storm expected to be unprecedented for florida's gulf coast, one of the top ten insurers in the state is usaa, the ceo wayne peacock joins us from the company's command and control center great to see you can you give me a sense for the magnitude of this storm and what you're expecting to see for damage >> contessa, thanks for having us on today. first i want to say our thoughts

are with all of the floridians in the path of the storm we've got 680,000 of our members as well and another 3500 of our tampa teammates who are in the path of the storm, so i want to kind of reach out to them. there's no doubt that this is a very large, very dangerous and really an unprecedented storm. i think depending on the track it takes timing will tell how devastating and how large the damage will be. >> i have been reporting on the insurance market in florida. i described it on our air as being its own kind of special hell, in part because the property insurers, according to the state regulator v lost money each of the five years, the last two years more than a billion dollars in each year how can you maintain a presence in florida and still be profitable, wayne? >> look, we have a singular mission, taking care of military families we do that across the countries,

really across the world, and we have a tremendous number that are here in florida and it's our mission to take care of them we're focused on that. while we continue to work to make this a healthy insurance market and insure that usaa's operations are such that we can be competitive in a rate but still make a significant and meaningful profit, so that we can continue to underwrite and serve military families in florida, no doubt, it's a very difficul difficult market in florida today. >> a lot of your competitors can't make it. 7 collapsed, 15 left the state the state backed insurer of last resort citizens has 10% of the market, roughly tied for leading market share because it's the only place that people can go and find insurance they're paying more in premiums for less coverage. give me a sense of how you see a way forward for florida to fix these insurance problems, especially in the face of increasing frequency and

severity of climate catastrophes >> that's the first step understand severity, understanding the frequency and being able to price appropriately. it's about continuing to work on the structures of the market there and about ensure that companies that are doing business in florida are well capitalized as well. usaa has been around for 100 years. we have really significant financial strength and we use that to our advantage to be able to take care of military families in florida. >> and in texas and a lot of other places >> texas and everywhere else. >> it's brian sullivan grateful for what you do thanks for helping out the military storms are nothing new we want to talk about climate these days and i don't want to get down that path but you can go to galveston, texas, some of the worst storms in florida history in the 1920s and 1930s yet the population continues to

grow i was in sarasota, $10 million homes on the water i mean, it's so vexing for so many people, why we're talking about one thing over here, and yet, either populations are completely ignoring it, don't believe it or don't care over there. how do we resolve this do we keep blowing houses down every 15 years, you pay for them and then they build them back up >> well, look, here's what i would tell you we have to have good rules around building and financial market has done good work in the last few years to help with the boundaries and fortified home standards and elevations in the tough areas. we have to work on that as one of the options and then i think for folks who want to build expensive homes on the coast there is going to be a price to be paid and insurers have to price that appropriately so it makes sense for us to continue to deliver coverage for them. >> one thing that we've seen is

that the underwriting above this has advanced pretty rapidly because of inflation what it costs for labor and materials to repair and replace after a catastrophe of this nature has changed. it's great to see you and thank you very much. hope you keep us in the loop so to speak after the storm clears and we're able to see the damage. >> great thanks, contessa this is our time to shine and we do our best work serving military families in tough times like this. we're looking forward to being there for them over the next few days. >> thanks, wayne. >> i think your point is well taken with the labor shortage here, trying to get a contractor to do normal work is going -- is already months out still, with with this damage coming you wonder how long some of the damage is going to be felt. >> this won't affect just florida, not just because of where the storm is heading but what happens is the contractors all go where the work is and

they can charge the most so what you see is, everywhere else in the nation that was expecting to have projects done with contractors may see their projects delayed as contractors go to -- >> the most powerful storm hadto hit the united states was 1935 in florida and yet the population of florida was like a million, now it's 21 hurricane andrew 1992, 13 million people, now 21 million people keep going there despite the fact that the storms hit every couple years or decades. a break through at biogen. new data surrounding the experimental alzheimer's drug has the stock soaring up 35%. we're checking in on the 2022 cnbc stocks draft how is seymour alpha feeling about his team five years later. hear from tim coming up. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this.

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up nearly 4% other companies working on alzheimer's treatments getting a boost including eli lilly up 7% and hitting an all-time high let's get a check on what's happening in florida and other news, the cnbc news update and seema moody. >> here's what's happening the eye of hurricane ian is just 25 miles from fort myers, florida. it remains a strong category 4 storm with sustained winds of 155 miles per hour and gusts reaching 190 miles per hour. ian is expected to slow down when it comes ashore and dump 12 to 18 inches of rain across a broad swath of the state. in the baltic sea the nord stream natural gas leak may be the equivalent of 16 million tons of carbon dioxide released into the atmosphere. a danish official says that's a third of denmark's carbon dioxide emissions. and lehman brothers, remember them, liquidation of its brokerage unit ended 14 years, 13 days after the company

filed for bankruptcy and helped trigger the financial crisis in all more than $115 billion was paid out customers and secured creditors received all the money they were owed and unsecured creditors got about 40% money back, twice what they were originally expected to get. lehman's bankruptcy remains the largest in u.s. history. back to you. >> thank you very much. coming up on "power lunch," retailer bf corporation issuing a strong warning about the economy. could we see the spending take a major dive this year. plus fx effects. the dollar index around a 20-year high, the pound tumbling despite bank of enangld intervention the ripple effects on "power lunch. look at the size of that- gaaaaaaaaaaaap!!! is that a goat?! you talkin' about me? gaaaaaaaaaaaap!!! i think this goat is saying “gap.” must be talking about the expenses health insurance doesn't cover. so who's talking about the money aflac pays to help close that gap? gaaaaaaaaaaaap!!! aflac! aflac! gaaaaaaaaaaaap!!! it's about to go down, baby!

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well, less than an hour and a half left in the trading day let's get you caught up and a look at how a potential recession could affect retailers this holiday season. begin with bob pisani at the new york stock exchange where stocks are rebounding off the 2020 lows hi, bob. >> you know, contessa, this is a strong rally, holding at the highs. no attempt to sell-off 10 to 1 advancing the declining stocks haven't seen that a while.

the s&p is about to break a six-day losing streak. so that's a good sign. oil is back above $80 and this is a proxy for growth, if you remember, so having a nice bounce in what i call high beta energy names, hess, philip 66, refiners bouncing, apa, high beta names, move more thanthe energy market. the stocks up. elsewhere when you getlower yields that means the potential for lower mortgage rates and it's nice to see a bounce in home builders which have been collapsing nice moves about 5% moves are significant, he nar, horton and pulte group. i say it looks pretty strong and yet i follow baskets of most oversold stocks and the amount is modest here intel collapsed a new low in the last two weeks, that's all you can muster, 0.3% coca-cola was down 7 days in a row, the biggest losing streak since 2018, that's all 0.8%.

mcdonald's eh visa collapsed, 206 two weeks ago, look at it 178. that's it? so temper your enthusiasm when you see the market is not going after beaten up stocks in any aggressive way as you heard earlier from brian and seema, there is a big hurricane bearing down in florida. there's an etf for this believe it or not, fema, fema and most of the names in that exchange traded fund, home depot, floor and decor, masco, home appliances, infrastructure work, all up 3 to 6% contessa, back to you >> thank you for that. a wild day in the bond market, the 10-year yield hit a high of above 4%, first time hitting 4 since october 2008 but then you see a big turn lower since then now sitting at 3.73% yield that turned lower off the bank of england saying it will buy back long dated bonds to

stabilize the pound. and oil closing for the day heading sharply higher back above 3% we have those details from the commodity desk. >> contessa, prices are jumping with the nord stream pipeline leaks and hurricane ian in focus pnt a regulator said about 158,000 barrels of oil is shut in the gulf of mexico thanks to the storm that is less than yesterday and a very small portion of overall u.s. output the latest inventory report is also supporting prices after a decline in crude and gasoline stocks wti up 8224 with brent crude 8922 for 3.7%. over in europe natural gas prices are jumping with a contract back above 200 euros per mega watt hours. officials are investigating the cause of the nord stream pipeline leaks with the eu vowing a united response adding all of the available information indicates the leaks were the

result of a deliberate act. >> thank you. >> vf corp trading lower after cutting its second quarter and full year e outlook weak demand and increasing inventories and promotions doesn't bode well for the holiday shopping season. our next guest says it's deteriorating quickly. let's welcome in jay, a retail analyst at ubs good to talk to you. are there segments that you think are going to get hit worse than others in this holiday shopping season? >> thanks for having me. the apparel industry is probably going to be negatively impacted by the impacted inflation it's having on consumers and some of the issues that are going to make the christmas holiday season a difficult one for retailers and brands. >> when looking at the apparel retailers are there specific retailers that, you know, if they cater to a budget minded crowd that will get hit worse than luxury brands

>> yeah. you're making a good point because we've been seeing that all year retailers that cater to lower income consumers off priced retailers or department stores or specialty retailers that cater to the teen market have struggled this year and a lot of the reasons that they have struggled are in play this year and the rest of the holiday season. >> it's brian, did they botch their inventory? did they over -- couldn't get anything forever then a window opened up and i hear about people over ordering and now going to have a discount >> that's an important point one of the reasons this is going to be a difficult season fort apparel industry is because there's too much inventory out there. one reason is because supply chains have been congested and everybody talking about the west coast, poor congestion for the last 12 to 18 months and retailers had to order inventory earlier than normal. when they ordered it was about a year ago when before people

realized the impact inflation was going to have on the consumer they placed bets thinking that consumer would be strong and we would have a christmas season as good as last year. since that's not the case there's not a lot retailers can do other than try to discount the inventory they've got and gross margin pressure. >> if they think the american consumer can't be relied on this shopping season do you think they're going to restrain their advertising and marketing? >> well, i think the answer to that is yes. one consequence of inflation we're not only seeing pressure on product costs but also seeing pressure on operating costs. the cost of operating stores and filling orders is rising and when costs are rising in an environment where sales are dropping they have to find other areas to cut costs to maintain at least close to what they promised wall street what you'll see is, you know, areas that can be cut like marketing and other advertising expenses will be cut. >> let's put up your likes and dislikes where these stores are concerned. i'm looking at a swiss performance running shoes, capri

outdoor corp like an u.s. owner, guilden active wave, you like those and don't like burlington, hanes, abercrombie fitch and kohl's three are budget retailers we were talking about why they might have more problems what do you like as a group? seems like you're including active wear companies in there. >> we like active wear as a trend. some think active wear got a boost from the stay at home trend that will be hurt and now people are returning to work we think it's a bigger trend that will be successful and drive growth that's one reason we like ahn holding. you mentioned capri holdings because they own versace and jimmy choo catering to the luxury consumer. >> i called them capri because of the island in italy. >> you pronounced it the right way. >> jay, thank you for the recommendations. from ubs appreciate that.

>> thanks so much. >> it happens. up next, king dollar, acting more like king kong, wreaking havoc everywhere emerging markets hit the hardest. how far can it go? we'll dig in with seema moody coming up. as we head to break, throughout hispanic heritage month we're celebrating, here's former united states airlines chairman and ceo oscar munoz >> bias exists in america always will we have to be honest about it. and i think for underrepresented minorities in particular there's an adage sometimes you have to work twice as hard to get half as far i do believe from my heritage we believe we want to earn our place on this earth, on this planet in our communities and so, you know, if you look at the statistics we're not just a growing community, which everyone talks about, we're a growing economic environment we are voters, we ar

the gdp of the latino cohort in america is equal to the seventh largest nation in the world. that's how you want to look at us, as someone to market to, to emacbre.

welcome back to "power lunch. call this the bond shot heard around the world the bank of england rolling over and going back to buying bonds impacting the uk and other markets. seema moody joining us with how the moves are playing out in the emerging markets. >> here's the thing. it is not just the bank of england. the cen tram banks in other parts of the world are using tools to support their economies. this morning india stepping in to buy dollars after the ruby hit a record low of 82 versus a dollar china unveiling risk reserve requirements to make it more difficult to bet against the yuan indonesia intervening to prop up its currency after sliding to its lowest level since 2020. policymakers could go further by unveiling measures to boost

capital inflows or mandate exporters to sell in local currency i asked the cio of lafayette endowment, $1 billion in assets under management about what this leads to, and he says a debt crisis may be premature. they're holding on to emerging markets equities and no plans to cut their exposure but clearly a larger conversation because many times people say history can repeat itself. contessa and brian. >> the dollar impact to your point, the bond impact to your point, if you look around the world, seema, do you see any markets that are particularly scary right now? >> right now the frontier market you have emerging markets, those that are a bit more developed, india, china, taiwan, south korea, but then there's the frontier markets like pakistan, ghana, south africa, ones we don't typically talk about and our audience may not have as much exposure to once they start to crumble if they do, it has a seismic effect on other countries that own

their debt so there's certainly a way where this could get back to investors. >> these are also nations you mentioned facing food cost crises as well. >> yes. >> and food shortages. >> exactly. >> thank you very much up next, a stock draft edition of our three stock lunch. struggling to gain footing with his picks paypal and doordash. can he make a comeback we're back in two minutes.

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welcome back time to check in on the cnbc 2022 stocks stocks draft today we are joined by the currently ninth place team seymour alpha, down 21% this year tim seymour joins us now listen, i'm not piling on to the ninth. i started it, and mandy drury created this draft, and i think you were in the very first one. >> i was. >> you play the game to win, which is you're going for big alpha stocks that may oar may not perform. you're not buying boeing, because it's safe [ laughter ] >> that's right, contessa, don't laugh. this is what we do here, and, you know, 275 basis points

higher on the fed since we had that draft the cycle has been shortened and longer-duration stocks like paypal or door dash. it's different for the mets this year i'm feeling good for them. i think seemo alpha has a shot down the stretch we're storing up our resources. >> doordash is down 41% since you picked it in the draft. >> we've and the quarter numbers, they actually have not indicated softness they're an injury leader in delivery the question is, what are you willing to pay three times next year's revenues, not expectative relative to itself yes, as brian pointed out, the strategy was to buy a bummed-out company that's still a leader. even going from terrible to bad is when you tend to win this

thing, though i haven't won it yet. we'll see. >> let's talk about a bonus pick if the stocks draft we are hal today, and you live in new york, so you probably take ubers all the time uber has gotten really expensive. you could do an $18 trip, and the driver is not making any more the company must be making more. you like uber? >> i like uber, and transportation is a service. if you look at even the headwinds we have, this is an interesting play, because it's about driver supply, which i think gets better. it's about normalized demand trends, which i think get better, and i think this is a company that again is not a company that you're worried about the balance sheet. they have $12 billion in cash and equivalents. it's a company that will probably do 3% to 4% by 2024

i know we have struggled with profitability. those second quarter numbers were very strong this is a global leader to buy this over at least a medium term, it's no question, but i think uber has been beaten down, had a big bounce >> listen, tim, it's okay. you're not in last place it could be worse. >> who is? >> i don't know. does it matter again, i can only go up. >> tim seymour, thank you. that's it, year nine or ten? >> i like how you say stocks draft. i prefer the singular. >> we started a rule, mandy and kevin and i, we made a trophy out of like aluminum foil. it's all grown up. up next, two of the days's most important stories on our

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piano they don't just drain them of the gas, they just stop it at the beginning, obviously a potential environmental disaster the world is wondering, who is responsible? is it where you area blowing up their own pipeline a ukraine jan sabotage operation? this is a giant, scary story, it's one to watch. >> we already know that the issue facing europe this winter about fuel supplies is a really desperate one. >> i've heard something about this. >> talk to me about the impact of this leak and how much worse does the crisis get for europe >> the impact right now is not much, because the pipeline has been shut off. we had a guest on "the exchange." nikita crew chef's granddaughter, it may be a kilometer or two long, and if

parts are blown up -- even if vladimir putin is taken out, is russia going to go back on the world stage and it will be just fine nobody i talk to thinking so. >> and how about refineries? >> there's been eight explosion around the world in the last week one in toledo, unfortunately one did kill some american workers one in senses waila blamed by lightning, one in poland, one in iran i think energy security is national security. there's been weird stuff going on. >> elon musk is accusing the s.e.c. of unlawfully muzzling him, an accusation related to the 2018 securities fraud settlement he tweeted about having funding secured when in fact it wasn't a legal brief now, musk's attorney contends his free

speech rights were violated by that settlement getting private approval before tweeting about it, over-arching the s.e.c. is investigating whether or not musk violated the settlement last years when he asked twitter followers if he should sell his 10%. basically you have elon musk saying he should be able to tweet whatever he wants without asking permission for it his attorney says there's no way he could voluntary sign away that right, because he didn't understand how far-reaching the s.e.c. would be not only about the tweets, but just investigating him. >> he wanted to buy twitter, because he viewed them in some ways assist as undervalued by the way, stuff you could say now you couldn't say a year and a half ago, you would get banned now it's free flowing, and now they're fighting about free speech rights in the courts. >> he was always arguing there

was a financial impact to him. all right. >> how much impact could there be he's already numbero uno. >> a lot of fun. >> first time ever thanks for watching "power lunch." "closing bell" starts right now. the s&p 500 breaking its six-day losing streak with a broad rally here across the board. the most important hour of trading starts now welcome, everything. stocks are rallies, energy, communications services and consumer discretionary right now leading the pack, but every sector is higher, all about what's happening in the bond market today stabilizing after the bank of england announced this morning it will look at buying long-dated bonds a big drop in bonds, trickling across the pond. th