is partners in making this go forward, much to the direct opposite of what we're hearing from louisiana >> and you think, i think he mentioned the houston mayor said the percentage of renewable sources that they're going to like 80% by 2030 or something like that. >> you can see more from the mercedes benz ceo tonight on "mad money" at 6:00 eastern. that does it for "power lunch." >> thank you for being with us >> "closing bell" starts right now. stocks pulling back, we're sitting near session lows but still tracking for big gains on the week this is the make or break hour for your money welcome, everyone, to "closing bell." i'm sara eisen coming to you live from washington today take a look at where we stand in the market the low for the down is down about 400 points we're not too far from that level. the s&p 500 down a full percent. the only sector that's in positive territory right now is energy, oil prices, holding their three-week highs after we got that decision from opec plus to tighten crude supply, cut production everybody else is weaker, and then some sharp declines in the

s&p 500 sector, utilities, for instance, down 3%, real estate down 3%. these were the more safe haven kind of polices to hide, giving a lot back today financials are also having a rough day, down 1.5% the nasdaq is performing a little bit better than the overall s&p 500 down about 6/10. yields are higher and the dollar is stronger. a bit of a resversal than the financial conditions we've seen earlier this week. here's a live look at the biggest dow under performers right now. there are plenty of them united health care is the biggest drag you've got names like 3m, ibm, walgreen's, coca-cola, and verizon. coming up on the show this hour, we will talk to david rubenstein, the cofounder of washington-based private equity firm carlyle group for a look at how market volatility and macro risks are impacting his business. we'll get a read on the strength of the consumer and the impact of food inflation when we

are joined by the ceo of snack power house mondelez let's get straight to the market today's dashboard, mike santoli is at the notwithstaew york sto exchange for us. >> a little bit of a test of nerves leading into tomorrow's jobs reports of course we've had the usual chorus of fed speak, very resolute, very hawkist, but also very consistent message. i don't think there's anything too new than what we've been hearing from the fed except for status quo, which is they're not going to anticipate a turn for the better in inflation. they've got to wait to see, including tomorrow's employment number the market is still in the s&p 500 holding a little bit above yesterday's lows if you want to quantify how much, you know, sort of damage is being done, today we're still churning within yesterday's range, up 5.5, 5.7%. gave back marginal pieces of that still definitely in the lower reaches of where we've traded this year. you know, the 3,800, 3,900 areas of the s&p 500 is more the lower end of the prevailing range that

lasted for quite a while we're still looking up at those levels now, you mentioned energy, sara. there's been an interesting split in energy stocks relative to crude oil, and that's relatively new over the last few months this is a two-year chart, for most of that period of time, very much in sync. you have energy stocks and the s&p 500 going higher as crude has settled lower. there's not necessarily over the long-term a one for one kind of lock step relationship, but it is interesting because investors seem willing to accept crude at these levels, natural gas of course is higher and feeling that it can support the cash flows of these companies also, some of the very few companies within the market that has rising earnings estimates, and there's a confidence they can meet the estimates arguably there's a little bit of crowding going on. people grabbing for energy or clinging to it when not a lot else to pin their hopes on. >> as far as the market movers these days, there's so much fed speak. it's hard to know what to hang your hat on.

they're mostly singing the same tune that they've got a lot more work to do when it comes to fighting inflation, and they're not done hiking yet, though bostic out of atlanta said like to see a pause after this year wonder where the market is in terms of fed expectations and what might be the next surprise. >> with fed expectations, direct fed exceppectations of where ra will go, i think it's been steady since the september fed meeting. short-term rates get above 4%. at the end of this year, the early part of next year, and then they're more or less in their target zone, and they'll go for a while at that level but the market is not going to be able to resist reacting to incoming numbers such as the prices paid going down in the ism indexes, such as things like rents rolling a little bit, energy prices coming down. they're not -- it's not going to be able to resist trying to anticipate an improvement in inflation or a weakening of the economic growth or tightening financial conditions that they think will lead to the fed to

make just pause. so i think that's where the tension is i don't think anybody believes we're going to get an all clear signal anytime soon. you're going to need multiple months of the real inflation data just the idea that we're getting towards the end of this tightening process >> thank you i'll see you a little bit later and throughout the hour from the new york stock exchange. on that note, the imf out with a warning today here in washington saying global recession risks are rising, and inflation must be stopped i spoke earlier with mathe managing director and asked her what she thinks fed chair powell should do right now. >> the path he has to walk is very, very narrow. if he doesn't tighten enough, inflation may deanchor if he tightens too much, there could be recession so chair powell is doing his best to watch the parameters in the economy to calibrate what he does, and i have trust that he would take the right -- he would

make the right call. >> joining us now is cofounder and co-chairman of the carlyle group david rubenstein great to have you back on the show >> my pleasure to be here. >> what do you think is the bigger risk right now? what's your baseline view of what happens, that he over tightens, under tightens, or gets it just right >> obviously nobody knows for certain. i think there's a concern that the fed could over tighten because it's so interested in getting inflation down by jay powell and the rest of the fed is so smart they realize if they do too much, it could put us into a recession. the third quarter numbers are coming out in a couple of weeks. the numbers are suggesting about a 2.5% growth rate for the third quarter, which would say we're not tipping into a recession obviously we've got the fourth quarter to worry about and other things the fed is doing as good a job they can based on the information they currently have. europe a bigger problem than the

united states. europe is probably in a recession right now. certainly i think the uk is, and therefore we have to be careful when we deal with europe because we recognize they could drag us down that seems unlikely at the moment. >> hard to believe that europe and the uk in a recession, china's slowing pretty sharply as well, and the u.s. would not get dragged in >> well, we are not as dependent on the european economy as we once were many, many years ago obviously we have a big relationship with china as well. china is not in a recession, but it's obviously in a much lower growth mode than it would prefer: right now the market's in a wait and see. when you're in a wait and see mode, any bad news that's over reacted to and sometimes good news is over reacted to. i think we're going to be treading water for a while there's no clear sign we're going to be in a recession right away or no clear sign we're out of the woods with respect to inflation. the numbers on the energy prices are not encouraging. of we prefer the energy prices and opec produced more oil than they appear to be producing.

i don't think that's as big a problem as it could be years ago when we didn't produce that much oil or gas ourselves >> by the way, on had this note, she did tell me the imf expects one-third of the global economy to have more than two negative or at least two negative consecutive quarters of growth, so recession definition or not, but clearly that's going to be a bumpy road, and it's going to get worse next year, david, because growth is going to slow even further how do you position for that kind of environment? >> in the business of private equity or longer term investments, we tend to invest for three to five years down the road so worrying about each quarter or each day is not quite as consequential for people who are trading on a regular basis but clearly we are in a lower growth mode than we were years ago, and clearly we're in a higher inflation mode than we were years ago when i went to college, the average inflation rate and textbooks were said to be 3 to 4% now we've gotten used to 2%

inflation. maybe we have to get used to 3 to 4% as the norm. we've been used to 2% for the last 25 years, and maybe the fed should recognize getting the 2% not easy to do it might require taking the interest rates up to much higher raut r rates than we probably could tolerate i suspect want fed will feel more and more pressure to not go down to 2% because that would probably tip us into a recession. >> how is it all impacting investor app tatetite for what u do the ft covered the latest numbers showing incredibly strong and they expect alt investment overall assets under management to double by 2027 to $18.3 trillion is that what you're seeing >> yes, because what's happened is that over the last ten years, 20 years, and 30 years, and even 40 years, the alternative investment world has outperformed public markets and then stocks fairly handily

if you have a chance to invest in alternatives, you're probably going to beat the market averages for public indexes for publicly traded stocks there's a fair amount of interest out there in alternatives and i don't see any diminution there's been some slowdown in fund-raising because people have less money than they had before because the markets have gone down, therefore the denominator produces less money for them to be able to invest. joef over . >> what about deal make with the money flowing in there was a rumor about compass today getting taken private by vista. that was sort of rejected by the company. we'll see whether mr. musk's deal goes through. it's looking likely tupt besides that, what do you see for private equity and overall deal making in this kind of environment? are there good values yet? are you ready to pounce? >> deal making has slowed down clearly. there's less m&a than there was

a couple of months ago when you have a situation where prices have gone down as much as they are in public markets, people who are saying things say this is a temporary aberration and we think the prices should be more normalized and the price is much higher than the buyer really wants to pay. the financing is generally available for deals, but you have to put in my equity than you did years ago for buyouts. generally there's a big gap between seller and buyer price expectations, and that can slow things down for a while. generally i think the markets are reasonable for doing deals. >> david rubenstein, it's great to get some color from you on the business, on the macro appreciate it. we're getting some breaking news from right here in washington, kayla tausche with the details >> sara, the white house announcing that president biden will be pardoning all prior federal offenses for simple marijuana possession officials at the white house expect that this policy will impact roughly 6,500 people who have previously been charged a federal offense and that president biden is also calling

on governors of all political parties in all states to take the same action. the white house saying that far too many lives have been upended by the simple possession of marijuana, which in many states has now become legal while senior officials acknowledge that it's fairly uncommon for people to be incarcerated because of this one offense, they said it is very common for people to be turned away from apartments and jobs because of having this on their record so they've instructed the attorney general to produce some sort of certificate for these individuals that they can then take to a landlord or a potential employer to prove that this offense has been pardoned additionally, the president is calling on the department of health and human services to study the classification of marijuana, suggesting that perhaps it should not be classified with other tdrugs lie lsd and heroin, especially as it is becoming more legal cracross the board across this country. as for the operation of

companies in this space, the white house didn't comment specifically on what potential policy changes could be impacting these companies. the statement does say the president beliefs certain regulations and marketing and trafficking should still stay in place, but we will certainly see a big impact in the lives of thousands of individuals from this policy, and we'll see how it impacts the corporate world as well. sara. >> we're already seeing quite a move in some of these stocks, kayla, shooting higher they've been absolutely slammed in the bear market a name like tilray up 14% just on the news. perhaps evidence there will be further steps to decriminalize marijuana from this administration something that i know these companies have been very hopeful for in this country. kayla tausche, thank you. after the break, we're going to talk to the ceo $80 billion snacking giant mondelez. get his read on consumer spending and whether he sees food inflation starting to ease. you're watching "closing bell" here on cnbc the dow is down 381, sharp

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oh... but everybody's online during the day so we lose speeds. we've become... ...nocturnal. well... i'm up. c'mon kids. this. sucks. well if you just switch maybe you don't have to be vampires. whoa... okay, yikes. oh sorry, i wasn't thinking. we don't really use the v word. that's kind of insensitive. we prefer day-adjacent. i'll go man-pire. the dow is down about 344 points, s&p is now down a full percent. we picked up a little steam on the selling in this full-time hour consumer staples are getting hit as well, down 1.5%, town down at the bottom of the list with utilities and real estate. these are some of the safer groups that tend to do well. mondelez ceo dirk van de put is ringing the closing bell

dirk, it's great to have you. >> thank you for having me, sara good to be back. >> so there are all sorts of concerns now about the consumer, now we layer on top of the inflationary concerns, the rate shock, the interest rates going higher what are you seeing at the moment >> at the moment we certainly see consumers shifting their spending i would say they spend less on clothing, on traveling, on big ticket items, but so far i would say in food, it's been mitigated. it has not been a big echlkt if if i like at our business, our resumes are up versus last year. they've slowed down a little bit. we don't see any signs of massive change biscuits and chocolate are not necessarily categories that get immensely affected by a recession. we see changing spending, but so far food seems to be relatively

unsc unscathed. >> and people haven't been trading down to private label brands, which we sometimes see during recessions? >> i think in other categorys that we are in, yes, i think that is happening. in ours it's happening a little bit, but particularly, for instance, chocolate, there's almost no private label. in biscuits, yeah, there's something happening but it's limited. it's not a real sort of worry at the moment >> and what is happening with food prices, dirk? are we finally starting to see some relief there for consumers at the grocery >> i'm afraid i have not good news there in the sense what i can tell you our input costs for next year are going to be up as much as they are up this year, so which means that we need to keep on pricing. now, there will be an effect of what was priced in 2022 into '23, so you won't see the same size of price increases, but there will be more price increases coming in food to my opinion.

>> even though we're starting to see commodities prices come down, some ingredients, oil prices come down, shipping rates come down, shouldn't all of that be helping >> well, it depends from company to company, in our case what is happening is, yes, all those things are coming down they are still much higher as they were last year, so still an increase there we hedge so we're well protected for 2022, but we have to deal with that effect for '23 and then we have other input costs, particularly for instance in europe, which is big for us, energy that is really going through the roof packaging costs are not coming down that much yet, and so it's sort of a shift of what's going up in costs, but it's still there. >> the other thing that has shot up that i'm sure you are not too happy about is the dollar. it's getting a big boost today perhaps one reason behind the equity selling: you're a company that does, what, still 80% of the sales overseas how are you manages this

>> thundeat's declining becausee other currencies are getting smaller against the dollar that's not really what we want to see we have to compete locally we cannot have our people in india or in china thinking u.s. dollars and price or products in u.s. dollars we compete local skly and we compete well our business on a country by country basis is probably doing better than it's ever done we will have the best year by far with very strong growth versus last year if you translate those currency in dollars, that's where the weakness comes and our bottom line roughly stays flat for the year that's only one year, i would say. we don't try to manage the business in line with that because i think that would be wrong. we manage the business to win in the local markets, and i'm sure that the dollar will lose a little be the of its strength and our translation into the dollar will look better for us.

>> because you have such a good grasp on the international picture and we're seeing growth slowdowns everywhere, what can you tell us that you're seeing from the consumer in china or europe or the uk versus the u.s., categories, preferences, economics, what stands out >> well, for sure i think the consumer, you have to be worried about at the moment is europe. they are starting to see the effect of energy into their electricity bills and some of these effects are -- i think some of them we'll see 200% price increase of their electricity. it's hitting now between october and march of next year, that's when most families will see it so we can see that there is a lot of worry and i assume that that will clearly be reflected in different spending or in less spending the country that's probably hardest hit is the uk where the inflation rate is very high, together with some of the political turmoil that's going on and the consumer in the uk particularly feels very anxious.

you know in places around the world, not so much i would say consumers in latin america are doing quite well our markets are great. china for us is doing well we don't see -- we have effects from the lockdown, and we see a shift in consumption between categories but nothing that says consumers are really very preoccupied, and i'm largely talking for our business, of course >> dirk van de put, great to get some insight into what you're seeing and dealing with. cost, consumer, global appreciate it very much. >> thank you >> the ceo of mondelez ringing the closing bell at nasdaq. the s&p 500 down about 8/10 of 1%. mike santoli, i noticed that the dollar's strong and treasury yields are high. not something that equity investors want to see. any spark? >> didn't seem like there was a specific spark, sara, except that we get later in the day, we're that much closer to tomorrow's jobs number and when

the markets are anticipating an event like this, they're going to retrace their last big move it was down in the dollar in yields and up in stocks. so those things moving a little bit in reverse, like i mentioned ear earlier, the s&p still trading within yesterday's range no at new low for the week smaller cap stocks are holding up fine. it doesn't seem like a real rush away from risk, but absolutely a tightening up of conditions. and by the way, the volatility index flipped above 30 >> the labor market, while there are some hints around the edges that it is weakening, it's still remarkably strong. even claims today which were higher, jobless claims are still near historically low levels to your point about how it's not all run away from risky stocks or risk. microsoft, apple, pepsi, that's weighing on the nanasdaq you've got names like netflix, adobe

adobe higher. >> in the last few days the nasdaq's been managing to hang in there of course it's in a deeper decline off of its highs than the rest of the market so i don't think there's a lot of specific targeted story lines here it's just, look, we had a very strong bounce. it's completely debatable as it to whether that was a decisive low or just an interim one as we mentioned, today we had a little bit of an upside surprise like, i don't know, 15,000 jobs in the week. and briefly the marketme wantedo celebrate it it shows you we're very sensitive to every little wrinkle. >> and it's also this weird perverse word where the market celebrates bad news. >> bad but hopefully not too bad. >> bad but not terrible. mike santoli at the stock exchange. first gap, now adidas. after the break, we're going to bring you the latest buzz on kanye west's growing battle with

retailers. and later we're talk with ian bremer about the political fallout from opec's surprise production cutod, tayand why he tweeted to elon musk, dude, stop trying to do geopolitics we'll be right back. 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 what should the future deliver? yeah... oh. don't worry i got it! (music) progress... (music) ...innovation... (music) ...discovery? or simply stability... ...security... ...protection?

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what is wall street buzzing about? adidas finally responds after weeks of kanye west's or ye lashing out on social media and on our air, adidas is finally commenting on the status of their yeezy partnership. in a statement, the company saying, quote, the partnership is one of the most successful collaborations in our industry's history. but after repeated efforts to privately resolve the situation, we have taken the decision to place the partnership under review we will continue to co-manage the current product this period. this is a big deal for adidas and its shareholders if the partnership ends it's bigger than the gap breakup. why? because yeezy and adidas signed

back in 2016, and according to cowen's john kernen, yeezy makes up 7 to 12% of footwear revenue for adidas 4 to 8% of total adidas revenue. here's what the ceo told me back in august about kanye. >> kanye is our most important partner worldwide. we have a very good relationship with him we communicate with him on a very ongoing basis, and we're very proud of that relationship. >> i asked ye about that relationship a few weeks ago when he joined us on this show to talk about the gap breakup. >> any of these relationships that i'm in, like i have to have a say so, you know, on the color ways they were doing color ways, they were naming things they were sending guys and tell me don't tell your audience that you didn't name that they were slowing down, you know, my allotments, and then copying the ideas that took tissue s --

some things took us two years. >> west helped turn around adidas and make it cool again. just look at the stock chart before and since ye dropped those first boots. they're still going for thousands on dollars on sneaker retail sitings: john kernen did say the adidas brand is struggling big time right now, and he predicts they're going to have to cut guidance for the third quarter. consensus numbers for next year are too high given the foreign exchange environment the stock is down about 3% trading here in the u.s., though it is down 61% over the last 12 months. up next, eurasia group president ian bremmer on reports the u.s. is going to loosen sanctions, and the impact that could have on the global energy market when we come back

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take a look at oil, up more than 9% for the week this comes after "the wall street journal" reported that the biden administration is preparing to ease sanctions on venezuela enabling chevron to pump oil president biden was asked about venezuela saying there's lots of alternatives and we haven't made up our mind. joining us is eurasia's ian bremmer. something that president biden said he was disappointed about

after he visited the country in fist bumped the crown prince in july what is happening here >> fist bumps not moving oil production, i'll tell you that the saudis, the russians, the emiratis and the rest of the opec plus countries are a supply cartel, and they are interested in higher prices in the context of lower demand, and that is, of course, what they're seeing given china's zero covid policies and reduced consumption as a consequence as well as expectations for significant recession coming up in europe. so i mean, they made that decision that decision was clearly not taken with any concern about how biden would react or the importance of the u.s. relationship i don't think it was meant to alienate him i think it was purely indifferent to the united states, and that says something to the u.s. about the saudi, and i think going forward, biden is going to be more cautious and more transactional in the relationship >> coincidence that the report about venezuelan production

comes today? >> i don't think it's a coincidence. but we're not talking about a big move with venezuela. it's probably going to be about 200 200,000 barrels a day, assuming it goes forward. i think it will, that chevron will then be refining in the gulf and bringing on to the united states. i think it's very unlikely that you would see any reduction in sanctions against the venezuelan state owned oil producer or more broadly for the financial sanctions that venezuela is facing but there's also the issue that colombia has a new the p rright now, president pet roe who has just said he's going to reach out to the venezuela administration, that the former president cut off in brazil. lula is likely to win the second round and become the next president in brazil. that's going to align the brazilians towards reengagement with venezuela this left ward swing in south america, you saw this play out in the summit of americas that went very badly for biden, means

that the united states is kind of on the wrong side of venezuela right now. i think biden does want to try to find a way to address that. >> i want to get to some of your tweets you have been tweeting at elon musk who has been tweeting about potentially resolving the russian war in ukraine what do you make -- you've called some of his positions irresponsible. you're clearly not in agreement. the fact that he's weighing in, what do you think about that he obviously carries enormous influence, has a ton of twitter followers, is about to buy the platform and take it private and is now tweeting out about geopolitical solutions to wars. >> these are russian talking points when putin met with a number of the shanghai cooperation organization head of states, kazakhstan, india, head of china, he was saying yeah, we're prepared to negotiate if we have the annexed territories, the insurance that we can actually supply water to crimea, have the land bridge and that is exactly

what we have seen from elon musk, and supporting that he's put up disinformation saying that all these territories in southeast ukraine are majority ethnic russian, which isn't true >> right, you're showing the map. >> these are -- there's no surprise that russia is promoting elon musk's tweets in state media over the course of the day. it's deeply damaging, and also, you mentioned, sara, if he takes over twitter, he's likely to reinstate president trump. i've already seen trump junior, donald trump jr. i've seen j.d. vance and others start posting why is the united states supporting ukraine? this could lead to nuclear war this is none of our business if former president trump takes on the positions that elon musk is presently tweeting on russia and ukraine, that will absolutely drive a wedge in the u.s. position on laeadership of this issue across the west.

>> wow, ian bremmer, thank you very much for joining us appreciate it. a lot of hot topics right now going on in geopolitical world here's where we stand in the markets, down 314 on the dow na nasdaq's holding up better, it's down now half a percent. it's recovered in the last few moments or so. the small caps are also doing better only down half a percent something mike highlighted some of the bigger multicap dow stocks are under more pressure some of the safer groups like utilities and real estate getting hit a little harder today. pinterest shares are pong after a g gre. y ldman sachs thinks that stock can rally 30% from here. we'll be right back. ustomizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities.

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up next, a top strategist who thinks the lows for the year are not in yet her top defensive plays straight ahead when we take you insides market zone. and then coming up later on overtime, guggenheim scott minor gives his latest market prediction in an exclusive ssterview you do not want to mi the dow is down 330 points nasdaq holds up better so do small caps we'll be right back.

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victoria fernandez on the market we'll kick it off broad. we have seen a selloff dow is down a percent. s&p down 8/10. nasdaq faring better, higher yields, stronger dollar, similar playbook as we all try to figure out, this week was a better week there was a better tone. we strung together a few days of up of gains in the market, and there are some real, i think, views that something in the financial market might break or force the fed to think that it's done a lot and it should just wait to see what comes next. something we heard from the atlanta fed president about the end of the year. does that ring true or is it just back here we go again, fed talks hawkishly, yields go up, stocks go down. >> that idea is in the air, that in fact, the fed is perhaps going to risk some kind of a stress event out there in the market, but i also think you can't get away from the fact that we finished a very weak september and a very weak third quarter on the lows, very

oversold, very strong snap back rally monday and tuesday right now i think it's digesting it and waiting for tomorrow's jobs number to see if, in fact, we can build a narrative toward, hey, things are moving in the fed's direction in terms of labor conditions softening up and maybe that's going to allow yields and the dollar to stay more tamed it's a big if, but that's where we're at. >> it's going to be wages and participation. those are the keys tomorrow, right? that's been putting upward pressure lack of participation, higher wages, shortages of jobs look at peloton shares, th theorizing today outperforming the market cnbc.com obtained a memo from ceo barry mccarthy to staff disputing an earlier report from "the wall street journal." the main dispute over a line in the journal's story attributed to mccarthy saying the company had to make significant changes or else it may only have six months to survive on its own mccarthy writing in the memo that that characterization is, quote, at odds with a story we told and the state of the business that's on me and i apologize but peloton did today announce

another round of layoffs this time about 500 jobs being cut, roughly 12% of its remaining work force mccarthy has been on the job eight months stock is down nearly 70% in that time mike, what happens to this name? where is the valuation any chance someone could step in i've been trying to make calls on this. i don't know why they would now, especially some big players that get rumored about like an apple or a nike when it's been cheap for a long time. >> well, it's been cheap in terms of the absolute dollar value of the company, which is under 3 billion right now. that seems modest relative to maybe the power of the brand and the peak revenues, which were fiscal 2021 that ended in june of 2021 at 4 billion, then went down to 3 billion. they're only expected in fiscal 2024 they built this company to be growing a lot faster that's why all the cutting on a price to sales basis because they're not going to be profitable in the foreseeable. it's under one but it's at

premium to where naught lis trades there also debt, nothing urgent. figuring out long-term if they can justify where they're valued. >> also it would be a long shot to get a struggling company that's unprofitable to give themselves six months to turn it around seems like a tough -- i'm not surprised he walked it back. anyway, pinterest is a big winner today, goldman sachs upgrading that stock to buy from neutral hiking its price target from 31 to 24, implying upside of 30%, citing strong potential revenue growth earlier in tech check, listen. >> laid out a really interesting long-term narrative about where he wants to take pinterest, a focus around commerce, a focus around bringing more shopping to the platform, and we think this is really the future of pinterest. it's not as much a social media company as we believe it's more

of a commerce engine. >> julia boorstin joins us, covers the stock why, julia is so goldman so bullish on a company that's really struggled post-pandemic >> it alwl comes down to the fat that maybe people were thinking about pinterest wrong and this idea that it should be thought of not as a social platform but an e-commerce engine i have to point out that today is bill ready's 100th day as ceo of the company he was brought in because he has that e-commerce background, because he understands the potential of this to be a platform to drive e-commerce growth so goldman sachs looked at how some of the channel checks and insight of where advertisers are spending is very positive on pinterest, but also the fact that brands are bringing over their full catalog to pinterest and brands and the platform understand the potential of understanding consumer intent. people are searching for a k couch. they're searching for a dress. pinterest can use that to not just search for ideas but

products to purchase bill ready is the guy who sales to be leading the charge here t. all comes down to changing the deaf finition of what pinterest. >> so much of these stocks is about the narrative, right and the definition and where investors think the potential is je julia, thank you a winner today as we head into the close, i'm watching where the weakness is today. i don't know that we've talked about this today, utilities, real estate, health care, and consumer staples, defensive plays. if you think that the market has further to go, you might want to be in those sectors to protect yourself. >> right >> especially if you think we're going into a recession why are they getting hit especially hard? >> i think it's a matter of what has held up better in fact, one of the bullish points coming into the week is that some of those perceived safe havens have started to buckle you like this idea there's nowhere easy to hide you take a look at the internal action today in terms of breath. you're three to one negative to

positive in terms of volume. that's clearly giving back some of the very strong upside breath, not all of it that we got early in the week. you mentioned real estate, i think it's worth looking at a six-month chart of real estate versus the financial sector, which it used to be a part of. real estate is really good for tissue -- it's the sell tower stocks and the data storage reach, that's what's really driving that it's about long dated assets losing value they started at very high valuations volatility index bracing for the potential of a hot jobs number, perhaps tomorrow above 30, kind of panicking a little bit in advance, but in a modest way so far. we were of course in the mid-30s at the highs of september. >> adp private sector shows that there's a lot of strength there in the jobs market still mike, so as we wait for jobs tomorrow, we get a lot of the fed speakers, the data has weakened, saw ism this week. we saw even job openings come

down this week how much weakness do you think we need to see to get a fed pivot or get a market that feels more confident that that's going to happen. >> it probably needs to be months of pretty decisive moves in that direction. and honestly, the fed has sort of shifted the focus multiple times along the way. they clearly feel as if rates just have to keep going up fast in the near-term until the inflation data itself buckles. they're not going to try to triangulate it maybe there's some infputs to inflation going our way. on the other hand, the rhetoric is going to stay this hawkish until the very minute they're forced to change policy or they decide they have to pause. it doesn't pay for them to rhetorically ease before they're actually ready to ease because they know the market will run with it. >> all right, mike, thank you very much. we're going to see you at the p top of overtime. you're hosting "closing bell" overtime at the top of the hour. we want to get straight to david faber who's phoning in with some

news on twitter and the deal with elon musk now what >> it never ends, yeah, and here i am you know, you take the subway to midtown, you think your day is over, but not these days it is the bizarro world of twitter and elon musk. we've gotten a motion that's been filed by musk for the judge to basically stay the litigation this is something we've been waiting for but we've been hoping it would be -- i shouldn't say we, investors were hoping it would be a joint stipulation going through all the points and saying yeah, we will stay litigation on both sides. no this is them asking chancellor mccormick to stay the litigation the things that stand out are some of the questions or at least their concerns about how long it will take to put together or for the financing banks to prepare for close saying that funding will take time because the parties are working through complex process of arranging that 12.5 billion of debt financing and we're drafting required documents, security interests and on and

on, sara they s they say basically they hope to close by october 28th. that's a long ways from now. don't expect chancellor mccormick to grant the stay. that seems youunlikely as to clm of how long it will take the banks to actually get together they have a 15-day marketing period should they choose to use it it seems unlikely any of them would move forward with marketing. their commitment for leveraged finance. and so you know, a lot of these claims seem somewhat hollow. it goes back to the idea that, sara, we don't have a deal still. we have musk offering 5420 saying i'm ready to do it. twitter saying we need assurances when we drop this litigation that you're actually going to buy us. neither side really trusts each other. maybe chancellor mccormick will be able to figure it out i don't know then we've got weird headlines

from musk's lawyer talking about lower offers that were made. it's -- you know what, this is the world of musk, what can i tell you it's bizarre, and there are investors who are just choosing to say see ya later. as likely as they still may feel it is that this will close at 54 p .20, they don't want to take the risk. >> twitter's stock now below $50 per share i guess. it looks likely, right, david, they just have to get through some of these litigation and debt issues? >> yeah, i mean, the funding is not an issue as i reported earlier, people close to the funding indicate they are fully ready to stand up to their commitment. whether they want to exercise their 50 day marketing window, it is not a function of them saying we are going to somehow finance. beyond that, the questions are, well, you know, twitter doesn't want to be left in any moment

where they've given up the litiga litigation and yet they haven't actually been bought and so how they bridge that gap has sort of been something that has proved to be something more difficult than they might have anticipated, sara, and it's something we'll watch closely. >> don't take your afternoon nap. stay close. >> musk will be deposed on monday that's what it's been pushed to. we may see that deposition happen. >> yeah, i guess, if this case holds, the litigation holds as they want. david faber, thank you very much. woefe've got one minute lefo trading. the dow is down 363 points the low of the session came just around the top of the hour there, the final hour of trading down about 400 or so it's a broad based decline united health, mcdonald's, goldman sachs and 3m the biggest drags. the only gainers are chevron, home depot and boeing. oil prices are higher today, and that's why energy stocks are doing well the only sector in the green in

the s&p 500 right now, everybody else weaker. utilities the worst performing down 3.3%. the nasdaq has held up a little bitter today thanks to strength in netflix, costco, paypal, adobe. though microsoft, apple, tesla amazon are weighing on that index. small caps holding up a little better down about a half a percent percent. that's it for me in "closing bell," now into overtime with mike santoli. >> you just heard the bells. we are just getting started, and we begin with our talk of the tape call for your money from guggenheim's scott my nert the fed could be forced to stop tightening as soon as early november scott joins us now in an overtime exclusive by phone. scott. as i speak to yo