that >> that's what i'm asking myself >> i don't use teams anyway. it pops up on my computer and then i just quit, quit, quet sorry. that's interesting we can use the -- we'll do this show like cramer did in vr steve, thank you i like looking at my colleagues. even when i'm not wearing makeup myself that does it for "the exchange." "power lunch" starts right now all right. welcome, everybody, to "power lunch. along with melissa lee i'm tyler mathisen and here's what's ahead on a very busy tuesday. stocks are rising in afternoon trading. for the most part. rebounding from earlier losses we are tracking the turn as the s&p attempts to snap a four-day losing streak. and can apple, apple do what it's done so many times before, and that is save the market? the stock reversing course this afternoon, heading just a little bit higher but it remains 9% off its 52-week low. where might it go next we're going to look to the

charts to see if they are signaling a break out or, melissa, a breakdown >> what a day it has been. stocks erasing earlier losses. the dow had been down 129 points the s&p 500 bouncing back after touching its lowest level since november of 2020 the levels are very important here right now we're just about 13 points off the session highs for the s&p 500 and we're up by .4%. but keep in mind that the trajectory of the move today out of the gates, half an hour into the session we hit session lows. that's approximately when the ten-year yield hit its highs that exact moment. also when the dollar ip detection hit its highs. once we had the ten-year yield roll over a little bit we had the s&p 500 as well as the dow moving higher. the nasdaq, though, still struggling under the weight of the semiconductor index which is down by more than a percent today. amgen meanwhile the best performing stock on the dow helped by an upgrade to an overweight at morgan stanley the analyst citing the stock's defensive nature staples the best performing sector in the s&p 500 led higher by walgreen's, kroger as well as

clorox up by 3% plus and as stocks rise this afternoon bond yields as we mentioned falling but ten-year yields pulling back after proechg the 4% level overnight is this part of the reason stocks are rising? let's get to mike san toldi at the nyse i feel like we are living in the bonds worlds right now we just have to see what they're doing. and then we react. >> that's absolutely right for the moment anyway. and perhaps indefinitely that is equity rallies operate pretty much at the permission of the bond market. now, it was mostly an overnight move higher in yields. remember the cash bond market was closed yesterday and a lot of knocks were pretty much bracing for a spike higher in yields based on what global yields had done, based on what the treasury etfs had traded at yesterday. we didn't get that it seemed like there was some softening up on the yields it left the stock market clear to perhaps find some traction and a familiar spot. past two days s&p's gone down below 3600 to or slightly below

the prior lows, which was only a week ago friday. we've been kind of hanging around and test the lows for the year did not really find a real impulse to go lower or break for the exits. so we're bouncing. why? market's been certainly a bit oversold defensive positioning after a very weak third quarter and rough go at the end of last week and you had the cpi number on thursday clearly everyone's anticipating it i don't think today's action says people are assuming it's going to be a benign number but you just want to be in a neutral spot, maybe don't get too negative ahead of a big catalyst, and certainly some of the fed speak was mildly reassuring from vice chair brainard yesterday that the fed might be more flexible than previously feared. >> i thought, mike, though, that the mester comments today seemed a little bit hawkish and i was surprised the markets were able to still lift a little bit higher even despite what she had said, which is basically that monetary policy would remain restrictive for a very long time >> yes no, that is exactly true, melissa, but the way i would read it is that's been the

message. that's been the baseline message coming out of almost all fed speakers including from loretta mester in her prior comments so what you're looking for is the turn or a little bit of the moderation of that message and perhaps you got it in the vice chair last night i don't think we want to make too much of it this is all perhaps scrutinizing it a little too minutely but i think that's the reason that the market was able to take heart in one set of comments and more or less look beyond the more recent one. >> all right, mike, thank you very much. let's turn now, shall we, to the technicals of the market with the s&p just above the key 3600 level. i thought it was 3750. now they say it's at another key level, 3600. whatever leadership stocks like apple and tesla, they are just off their 52-week lows dan fitzpatrick is founder and chief market analyst with stock market mentor.com. dan, welcome good to see you, sir >> hey, tyler, thanks for having me >> we're delighted to have you here though i'm not delighted to

quote what you say in my notes, and that is that the s&p can fall another 20% and that may not happen until the third quarter of next -- that's next summer, dan. i can't wait that long i don't want this to happen. give me your thesis. >> i'll start with the good news first. markets anticipate the end of a recession. we've seen that before and there's always good stocks to buy during that time. in fact, it sounds kind of counterintuitive to say it but i think that trading and investing can actually be easier in this type of market you know, as long as you temper your expectations. and what i mean by nas most stocks are crap. most stocks are falling. >> can we quote you on that? that's really a good one right there. >> most stocks are crap. >> most stocks are crap. >> okay. >> so you have a very small pond where you need to fish and the easiest way to sort this

out is if a stock's not above the 200-day moving average then you don't see it because if you're buying it lower than that you are not on the side of institutions i don't want to get too far off track. but that would be my optimistic advice is don't give up on the market, just make sure you're covering your risk right now and keep some powder dry so when we do see an improving market, and we will, just not now, you're able to invest >> i want to get to some stocks that you don't think are crap, number one but before we do that i buy the idea that the market always moves in anticipation of the end of a recession i know you're saying we're not seeing that in the market now. that's not what the market is reacting to today or in these brief periods of flurries. but we can't even agree on whether we're in a recession or whether one is coming or not

no one seems to know >> well, i think a lot of people know, they're just not saying it >> okay. >> i just go back to the basic definition you know, two quarters of negative gdp that's a recession we're in it. you look around. and you know, nobody that i know is rolling in the dough. saying like oh my gosh, i've got to do this, i've got to do that. i see it everywhere where people are a little tentative and maybe that's just from the news flow. but i think there are deeper things going on here with the fed funds rate the way they've jacked it up people talk about like oh, they've only raised it 3%. no they've raised it 80%, from 0.25, in a very short period of time so that's a problem. and just in general think about this, tyler. the last couple bear markets -- >> they've tripled it or whatever they've done.

it's well over a triple. >> it's just been madness. and not to editorialize too much, but the thing i hear is well, the fed has to do this to maintain their credibility and that's assuming the fed has credibility. they're always late. and this is the case here. it's really just kind of too much too fast. but everybody says that. but just technically, you know, this market is broken. >> let's get to -- boy, you're giving us a lot. you're giving us a lot today, man. i love this. >> i'm bringing my a-game. >> i love that, man. let's get to a couple of stocks that most people would think aren't crap. i don't know whether you think they're crap, but i'm just fixated on that word, by the way. apple -- >> i'm sorry at least i didn't say something else >> well, yeah. it's cable, man. it's all right fcc isn't watching tesla and apple. you do not see them as the

saviors, the clydesdales that pull this market out of its ditch. >> i really don't. and i've heard people on cnbc lately talk about apple, not necessarily that apple's going to be the savior but you've really got to watch apple, apple's holding up the market and all that and i understand that. but it's really not. it's actually -- you know, it's underperforming right now. it's outperforming 2/3 of stocks and that's fine. but it's not really outperforming even the s&p anymore. it's rolling over. and i don't know if you're able to show this chart of apple versus the 200 day moving average or the 40-week but it tests that several times. and now it's fallen below that and this is a classic topping pattern. also here's the historical data here on big leaders, and i would say

apple's one of them, once the -- think about tesla in this way too. once a big leader breaks down, 80% of those leaders historically fall at least 50% and 80% of those, or half of those i should say fall 80%. and you can look at -- not to pick on cathie wood but you can look at ark as an example. that was a huge flyer. it's just imploded but the point is when the institutions start exiting and the retail buyers keep buying, that's a top and that in my view is is what we're seeing with apple, for example. the fundamentals are deteriorating. >> got to leave it there, dan. dan, you can come back anytime thank you. >> okay. >> appreciate it bye. >> thanks, tyler >> from technicals to fundamentals our next guest isn't recommending selling stocks in this market. instead he is hunting for values sarat/16i is managing partner at

dcla also a cnbc contributor. always great to speak with you i want to pick up on a thought our previous guest had, and that is that all stocks are crap, which i think i'm going to embroider on my samplers which i'm going to give out for the holidays in case you're wondering what i'm going to get you, tyler >> thank you >> it is all stocks are crap i want to start out with one of your picks, which is comcast the basis for that statement is that stocks are moving lower, there are a lot of stocks out there that are just moving lower, and comcast, and i say this sadly because it is the parent company of our network, has had that sort of chart for two years. and yet you say you find value in it. why? >> i do. for a bunch of reasons one is if you look at the valuation here, melissa, it's trading at eight times earnings. you're going to get 3 1/2% yield. it's a public company but with a strong family ownership. and that's something we always like then when you look at some of the parts, this is a cash flow machine. 80% of the business comes from cable.

yeah, thinks have -- pulled forward in the pan dem bick that is a high margin business that has pricing power to t, especially as more people are work from home or working from the office so you've got that business. and the negative aspect, there's no question there's a reason the stock is down 40%, is look at some point people are look at nbc universal, looking at theme parks and that's slow down but you're getting paid to wait on this. 8 1/2 times earnings with a very solid balance sheet, there are a few triggers that comcast can pull they can look to buy more shares, look to do other acquisitions they can look to break up some of the parts of the ownership. the market trading at 15, you've got a stock trading almost half as much and is totally out of favor, and that's a true value play with the strong balance sheet. >> the balance sheet really allows those other options to be true options and i want to ask for the dividend, because we did put that up as a reason to be in comcast stock, 3.6% sounds good but in light of a 42% decline in the stock shares that's not really going to give you much solace at the end of the year here so how do you sort of weigh that

in how do you view the dividend yield? it seems like it shouldn't be necessarily a factor >> no, it isn't. but it starts a floor, especially when you get to be 3 1/2% i mean, at that point there's a floor, especially when it can cover its cash flow. so i think that is something very important to look at when you've got companies like that and you know, if the stock goes down further with so much cash flow coming out, over 40 billion of cash flow, they can buy back a lot more shares. >> i want to get to uber, sarat. are you in uber already or are you looking to get in or did you get in today on the back of this report that the d.o.l. is looking to make it more difficult for companies to classify independent workers as contractors? >> sure. so full disclosure, we've been in it for a while. we've owned it for a while we've ridden it all the way down to the teens and now when you get this news today and you look at it and you look at this news, there's nothing new here this is exactly what happened under the obama administration the the states get to decide

what they want california's already in the past ruled when they had a huge referendum, if you look at kind of the data, 50 million workers have said hey, we want to be independent. so a lot of this is just not real news. but it's interesting as -- why is this coming out one month before elections it's unfortunate because sometimes some of this information comes out when it's not really relevant to the fundamentals of a stock. uber by itself, most people don't understand the story it's really three businesses now that are cash flow positive. and really the beauty of an uber is a driver gets to choose whether they want to do mobility or food delivery that's something very unique amongst uber and they have been cash flow positive the last three quarters and they are intending to be cash flow positive going into next year as well. sarat, great to speak with you thank you. >> thank you >> sarat sethi >> coming up rising used car prices a major contributor to inflation over the past year but that's turning just a bit and it could lead to a new way to trade the auto dealer stocks.

plus mortgage rates. back above 7%. a new report shows they're not only more expensive but also harder to get. and before the break, take a look at the ark innovation etf, well off its lows of the session. more "power lunch" in two minutes. 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. this is the planning effect.

thursday's cpi report we take a look at auto prices which

had been one of the biggest contributors to inflation. according to car guru's, used wholesale prices are coming down we reported something on this last week. falling 2% in september. new inventory is up 52% from last year though still below precovid levels. you go to lots you do not see as much inventory as we used to if the car market's starting to normalize what does that mean for auto dealer profitability? groups like sonic, aught e! nation daniel imbro is managing director at stevens. good to have you with us what do you think here i was on the phone earlier today with an auto dealer and they didn't have much -- looking for a new car. they didn't have much inventory, particularly in the hybrid area. they don't have a lot. >> yeah. good afternoon, thanks for having me. you're right, inventory on the new side is still very limited and while we're starting to see some signs of used prices alleviate and we still think we're a couple quarters away

from new production building enough to where invent ru starts to build on lots that's part of the reason we think the auto dealer stocks can work, because while inventory's been light what it's led to is a much higher per unit profitability. and i think as o.e.m. production slowly ramps and improves the elevated profitability can -- >> it's very interesting because i was going to ask you basically that i have another friend in the automobile business. he said we're not selling nearly the volume in units that we used to sell but we're making more money than we ever have. >> that's exactly right. if you think about the historical car purchasing process you know you're used to going in and negotiating some amount off a sticker price and essentially over the last 12 to 18 months you haven't been able to do that so the dealers themselves, exactly what you said, selling fewer units but making much more per unit and overall it's been an increased profitability. which is -- >> nowadays it's how much less above sticker price can i get in

many cases >> that's exactly right. especially on hard to find models you're going to find above msrp especially the independent dealer lots out there. >> how do you start thinking about the recession and a pullback in consumer spending, daniel i would imagine consumers looking for cars might be more apt to go and buy a used car instead of a new car but are you concerned at all there's going to be an upswing in inventory at exactly the time consumers pull back so there's a bit of a push-pull there >> yeah, that's a great question and kind of the key for investors. i think it's a risk into next year but i still think we're undersupplied on the new side, that we're not going to hit that fulcrum until at least the back half of next year. on the used side there's no doubt to your point. we're seeing consumer spending pull back. we've seen it much more distinctly at the used-only retailers. out of our coverage carmax and carvana are two that don't have the -- we've seen demand pull back without offsetting profitability from the new vehicle piece. in our opinion there's enough, between a few things, really

pent-up demand consumers, rental car agencies prices were up last year biggest driver of that was rental car companies that auction buying cars over the next 12 months there's still a lot of pent up demand from those fleets to turn over and become younger again. there's enough demand for new vehicles that we're not going to to see that inventory build as much as people fear, especially with the ongoing supply chain issues whether it be out of asia and china, whether it be across europe with the energy crisis. i think there are still some global disruption that's are going to continue in the near term >> as you go through and you look at the car dealership stocks, are there one or two that you like markedly more than others >> that's a great question there are. i think broadly for the group we remain more positive but our favorites in the group has been asbury, abg what we have here is a fant really cost control story. the management team's been great executors and capital allocators from our industry contacts they

probably bought the three strongest assets that were bought during covid. i think it's made their earnings power stronger over time and i think they paid down a lot of debt off the balance sheet, they have free cash flow and can start reallocating capital that could be a near-term disruption i think longer term that remains one of our favorites another one we've been highlighting is group one. it's a dealership model that historically the ownership in brazil and texas have been overhangs but they've divested brazil texas is right now actually a very strong economy for them and the stock's trading at a 20% free cash flow yield on next year's numbers, which already assume profitability begins to normalize next year. at this valuation that's one near-term investors -- >> wouldn't be the uk be an overhang for group one though? they have a sizable share of the market there >> it's a great point. it's definitely an overhang on the group. i don't think it fully closes that gap but i think it's more than discounted today. the other piece is the uk for

these guys is vastly premium luxury so as you think about that consumer, porsche, mercedes, maserati, much less i think discretionary -- or much less impacted by the inflation we've seen it's a more fluid customer base over there >> dan imbro of stephens we appreciate your time today. >> thanks so much. >> you got it. >> ahead on "power lunch," laying the cards on the tables money is pouring into gambling and sports betting but those stocks struggling this year. some down anywhere from 20% to 50%. we'll head to las vegas and hear from the penn entertainment ceo. plus today's working lunch we're highlighting the ceo of a pharma giant, sanofi, about using a.i. to advance the industry "power lunch" will be right back - yieldstreet presents: alternative investing with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet.

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welcome back to "power lunch. i'm frank holland. here's what's happening at this hour ukrainian officials say they found a mass grave in the newly liberated town of lyman. the regional governor says they found the bodies of 55 civilians and ukrainian soldiers some of them were children israel and lebanon have reached a historic agreement over their shared maritime

border the deal could pave the way for natural gas exploration and also reduce tensions between the two nations, which have been formally at war since israel's establishment back in 1948 and royal watchers, mac your calendars. the coronation day for king charles has been set for may 6th of next year details are scarce about the ceremony but sky news reports it will probably last just about an hour far shorter than the three-hour event that installed queen elizabeth back in 1953 also the guest list will be smaller, with only 2,000 in attendance inside stead of the 8,000 people invited to queen elizabeth's coronation that's the very latest back over to you, melissa. >> guess i won't be looking for the invite frank, thank you frank holland. let's take a look at shares of penn entertainment the stock losing nearly half of its value so far this year the company's ceo among the big names gathering in las vegas this week for the global gaming expo our contessa brewer spoke with them she joins us now with the interview. hi, contessa >> hi there, melissa yeah, commercial casinos are just on a hot streak, though just off a record-setting

august, gaming revenue up 9% over the previous august and according to the american gaming association the gaming ceos say that they are watching for the same things, the same challenges plaguing other industries they're looking at inflation they're looking at supply chain issues still and of course interest rates are top of mind. i asked penn ceo jay snowden how he's approaching 2023. >> so for us it's about prudent capital management, staying liquid, making sure that we can put capital into our properties even when things appear difficult. just as we did in covid, by the way. we're here for the next 50 years. we think about things for the next 50 years. and so we have that luxury that may result in some volatility in the stock. i can't control that all i can do is think about the next generation of this business and that's what we do every day. >> snowden also says the illegal offshore gambling market is an

existential threat to the legal ibds and he says law enforcement regulators and companies have to band together to fight it. the research shows americans spend $300 billion annually. new numbers out from the a.g.a. this morning on illegal and unregulated sites and machines that's a massive cost in terms of tax revenue but also when you think about all these operators investing and getting licensed and know your customer and they just lose on u. out on that to those competitors who don't have to go through the same regulation. >> all right, contessa, thank you very much. great to see you out there in las vegas. ahead on "power lunch," problems at home. the rate on the 30-year fixed mortgage climbs past 7%. and now new reports say credit availability could be declining even as rates are rising we'll bring you the latest plus data stock mining we're picking through some of the big calls today in the call space and trading them in our three-stock lunch. we'll be right back.

90 minutes left in the trading day. we want to get you caught up on the stock market stocks, commodities, bond yields and the impact yields are having on the mortgage market let's start off with bob pisani at the new york stock exchange

where things have turned around significantly since this morning, bob >> yes and there's a number of reasons for that the most obvious of which is we are moving in lock-step with bond yields. i'm showing you the tlt here these are prices on long-term treasury versus the stock market the s&p intraday that's a pretty good relationship the bottom line is we hit yields -- this is the opposite here yields essentially topped out around a little after 10:00. and after yields started moving down, prices up, the stock market started lifting we're moving in lock-step essentially with bond yields when bond yields start moving down the stock market starts moving up. that's the simplest way to understand this. a couple of other stock-specific stories happening i think are important. uber was a terrible mess this morning. it was a lot of talk about changes in the gig economy affecting uber it bottomed out around the same time the stock market bottomed out. it started rallying as well on fairly significant volume. then after the market closed, melissa, we had a very

interesting development. lzmh, the biggest luxury goods maker over in europe, actually reported their sales numbers, and these numbers were way better than expected organic sales up 19% these are organic sales. that was way better than expected fashion and leather goods, which is 2/3 of the business, up 24% way above expectations wine and spirits, famous champagne house there up 14. and watches and jewelry up 16% one thing really interesting -- and lvmh is still down on the year but outperforming most of the rest of the european stocks. one thing very interesting sales over in europe up 43%. i had to read that twice 43%. and they attributed this, melissa, to europeans -- excuse me, to americans going over to europe buying massive quantities of luxury goods due to the weak dollar and of course we saw some amazing stats with the british pound, for example, almost reaching parity with the u.s. dollar the euro reaching parities well. and that apparently a big boost

to lvmh. melissa, back to you >> thank you, bob pisani oil closing for the day falling back below 90 bucks a barrel pippa stevens at the commodity desk >> oil is falling again today with two factors driving those declines first is another round of lockdowns in parts of china. a rebound in the country's demand has been a key part of oil bulls' optimism. given that china is the largest crude importer second is those broader recession fears which have been weighing on oil over the last few months let's check on prices. wti at 89.10 for a loss of 2 1/4 of a percent. brent crude right around $94, down around 2% natural gas, though, is higher after yesterday settling at its lowest level since july. last week saw the second largest gas bill since the eia started tracking the data more than i adecade ago. fears around i apossible shortage have somewhat abated but we are currently in shoulder season with a ramp-up coming as temperatures drop. looking at stocks, oil and gas names are higher while clean

energy stocks are in the red one notable decliner is sun power, falling after bank of america cut the stock to an underperform rating. melissa? >> pippa, thanks pippa stevens. now to the bond market where yields are pulling back. rick santelli's at the cme watching all of this action. rick >> yes, yields pulling back and certain yields actually pulling back below on change those are the shorter maturities like 3s -- 2s, 3s, 5s, 7s. they're all a bit lower in yield, a bit higher in price we had a below average grade no sponsorship by investors despite the recent run-up in yields we can all think what bob pisani said, stocks and rates, they're following each other remember the third and the fourth of october, those were big stock days to the up side. and yields move lower. as a matter of fact, they had an interim low on the 4th so let's start our two-year note yields on the 4th. they were hovering around 4% and even though we were a bit lower today because they settled

a whisker above 430 you could clearly see they've covered a lot of ground in a short period of time. let's look at a two-week of ten-year you know, this is very interesting because if you look where they were right around the 3rd and 4th they were hovering in the 350s. so you could clearly see that uturn that longer dated treasuries have had. and if you go overseas let's go to september 1st for gilds gilts were hovering around 3.86 on the 4th when we had that interim bottom you can see how gilts came right back, hovering right below 4 1/2% as the bank of england is forlsed to continue quantitative easing, buying to continue to try to control the run-up in rates. and finally, here's the dollar index. they're around 1.10-ish on the 4th of october boy, did they follow rates higher so it's the dollar rates and stocks all moving to the upside. of course when yields don't get out of hand. melissa lee, back to you >> rick santelli, thank you. and the moves of the bond market of course impacting mortgages.

rates on the 30-year fixed back above 7% if you could even find a mortgage, diana olick has been looking at that story for us diana. >> that's right, melissa it's really a double whammy right now for would-be home buyers the average rate on the 30-year fixed crossed over 7% at the end of the last week and just kept going higher, hitting 7.14% according to mortgage news daily. that's the highest level in over 20 years remember, we started this year right around 3%. now, we've seen the refinance market decimated with those applications down well over 80% from a year ago according to the mortgage bankers association's latest report. applications to buy a home down 37%. and to make matters worse, it's now even harder to qualify for a loan mortgage credit availability fell in september for the seventh straight month, down 5.4% from august according to the mba's index. it's now at the lowest level since 2013, when the housing market was still recovering from the financial crisis

and while lenders are desperate for business, given the drop in demand they're also concerned that a weaker economy could cause an increase in mortgage delinquencies. they therefore have a smaller appetite for lower credit score borrowers or any riskier loan programs that said, there is now more demand for adjustable rate loans which offer lower interest rates but which are considered more risky of course. >> so i guess i'm understanding you correctly here, the drop in so-called mortgage availability is directly tied to the idea that the mortgage lenders are pulling back they don't want to be exposed to less credit-worthy borrowers >> exactly they're concerned about rising delinquencies, even though delinquencies are sitting near record lows and are even around lower than they were pre-pandemic at this point but they are concerned that should those start to rise they don't want to be exposed to more risk >> all right diana, thank you very much diana olick reporting. up next, today's working lunch

mr. fortt, jon fortt, bring us his interview with the ceo of sanofi and throughout hispanic heritage month we celebrate our cnbc teammates and contributors here's jose seal, restaurant brands ceo >> i think the story of the cuban immigrant is not well known. it's a pretty compelling story of difficulties, challenges, leaving everything behind, not for economic reasons but for political reasons. for example, my mom came as a 14-year-old. she had to leave everything behind became a very successful educator, later in life became a ph.d. and taught in universities and like that there are many other examples of very successful cuban immigrants. so i think the story is one of -- that were overcome because of perseverance, because of grit, because of optimism and because of a tremendous work ethic.

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all right. as economic conditions tighten,

business leaders are focused on using technology to provide an extra bit of efficiency, maybe a competitive edge this week jon fortt brings us up close with a ceo who's working to apply artificial intelligence in the pharmaceutical business jon? >> yes tyler, paul huds orn's the ceo of sanofi, a $100 billion roughly market cap pharma company based in france. he's not a scientist he earned a degree in economics and learned to collaborate in teams and empower the scientists to better solutions. he says even when he was in college in manchester he was eager to get to work >> like everybody else i was trying to make ends meet i mean, the reality was i also worked nights at a gas station, you know, trying to make sure i could cover my costs it's okay. i spent the summers digging holes on construction sites to make sure i had enough cash for the following term i mean, i did stuff that most people do. and to be honest, i feel now i'm better for it for having had those experiences. but i did them willingly and it

was a good time to be around everybody was very present all the time i enjoyed my time at college, like i said, but i was happy to get working. >> now under his leadership sanofi is working on ways to use software to give it an edge in a business defined by long shots the hope is that advanced analytics will help scientists figure out characteristics of the patients most likely to benefit from drugs and development, boosting the odds of approval. >> when you start off with a drug, let's say it's eight, nine years from launch, you've got maybe an 8, 9, 10% chance that it will work eventually. and that rises to like 65% when you're in the last clinical work, in the last two or three years. only 65, right not 100. and what we believe is using a.i., we can't change -- we will change the structure of the drug chemically that's other work.

but let's follow this example. we believe that using big data we can improve our chance of success by finding patients of a profile that will disproportionately get a benefit. he and that's good for them. it's good for governments who want to invest wisely every dollar or dime and it's good for us because it means that it's a success. but we're not trying to go from will it work or won't it work. we're trying to just stack the deck in favor of the patient and you know, and that's 4, 5, 6, 10% it's not more than that. but that's okay. >> managing those percentages. he's based in europe, so i also talked to him about the economic instability that's come from inflation and the war in ukraine. he said there's the potential for enterprise technology to amplify workers' impact and help people get creative and save energy during what's happened, guys to be a challenging winter. >> when he's talking about using a.i. to better the odds of the drug actually getting through the process, does that mean

changing who participates in the trial? >> uh-huh. >> actually finding candidates that will actually respond well to the drug? >> exactly so there's work on both sides, on the drug itself and on who the drug is targeting. and it's just those percentages of being good enough to have the right kind of benefit for the right people >> he's had a long pedigree in the pharmaceutical business. he was at novartis before he came to sanofi did you talk to him about why he would move from one company to another? is it merely the money is it the scale? is it that sanofi has a more interesting pipeline than novartis or what? >> he talks a lot about opportunity for impact where can he have the biggest impact in being able to bring people together and point them in the right direction he also talked a bit about covid and where sanofi fell short, right? in coming up with vaccines but then how they move forward, learn from that, and get better in the future. >> what is the next sort of technology that they're looking to try and use

>> there are several i asked specifically about a.i. but also about enterprise tech because with this remote work challenge and also the challenge of saving energy in europe now during the winter, right enterprise technology actually helps people work remotely without the same kind of office footprint. and that should help europe overall possibly so there's this interesting based on what's happening even in energy markets opportunities for technology to be a help. >> all ight, jon, thank you. jon fortt. >> let's have a little hair of the data dog, shall we wells fargo getting bullish on the software name, calling it a unicorn in the software space. we'll trade that name and others in today's three-stock lunch ayuned - oh, the stock market is doing that fun thing again.

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this thing, it's making me get an ice bath again.

what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. software space, sector trading around the lowest level since may 2020 bern stein initiating snowflake at market perform. it's been a darling in the industry, it risks melting if it doesn't gain seg revenue jp morgan raising it and wells fargo initiating data dog with an overweight rating calling it a unicorn in the

software space marianne, great do have you with us >> thank you >> you know, it's funny. we walk you through the names before, obviously, before we got to this point on tv. and we went through what is expensive and what is not expensive. is there an absolute number in your mind for this sector? i mean, it's really a sector that has been hit so hard because of mack crow concerns. and just, you know, a risk aversion in the market, particularly to companies that have high valuation that are not profitable this sector has been just taken to the woodshed. that is estimated 2023 sales and part of the reason is because that managements have already eluded to the fact that they have longer sales cycles in this software sector and they've been more cautious on their guidance. when you have valuation that's are higher, you can get harder

from rising interest rates we're talking about snowflake. a very high valuation. i call it rarefied air at 24 times sales estimated for 2023 and management has beaten expectations they raised guidance this last time around. they indicated that growth is slowing. so longer term, they have great plans. but shorter term, the valuation just too high for us >> let's move on to service now whose valuation you find rather more attractive. >> right tyler, so the valuation is about 8 1/2 times next year's sales number and, you know, we think that they're going to continue to grow sales and earningeds in the 20% area this one has a pipeline that is very strong and they said that

there's been a 40% increase in the pipeline following the knowledge now conference that was management's comment so this is a mission critical tu type of software for larger enterprises. they have a renewal rate of 99%. that's the company i want to be invested in. and they have about 5.5% share of their total market. we think there is great prospects ahead for service now. >> it sounds like you might be sniffing around data dog but too expensive right now. >> yeah. it's about 12 times to that price to estimated 2023 sales. and management noted gradual slowdown last quarter. primarily on the larger customers. and we just like to wait for a better buying going down that one. >> all right marianne, great to speak with you. thank you. >> thank you >> marianne. >> all right up next, two beaten down stocks

in the news today. coin base rising meta, not we'll explain next this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. the new iphone 14 pro is amazing. the camera is incredible. and you'll get our best deal. nice, but i can't accept it. unless every business gets the best deal. on every iphone. uh, actually... we already do that. the plumber with the ascot! big bjorn, little bjorn, too! the caterer who really cares. every business should get the deal! we make a good team.

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resource estimate just announced, the focus now is on further expansion. blackrock silver. - yieldstreet presents: alternative investing with kal penn and older kal penn. - oh, the stock market is doing that fun thing again. - hey news from the future, you're going to live through that about 10 more times. (laughs) - oh, it's no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - ooh. i think some of my gray hairs just reversed. - yeah. you're welcome. - [narrator] become an investor today. yieldstreet: private market investing. as you noticed, we have turned negative. the s&p 500 is down by .6% the nasdaq is down by 1.2% the losses have been accelerating this could be from headlines that the bank of england is

telling pension fund they have three days to rebalance and, of course, the new administration's efforts to ease the inflation pain over there is really caused a lot of this -- >> yeah, there's been a lot of dysfunction and market reaction. we were up 361 when we began the hour on the dow. now up just 29 and s&p 500 and the others turning negative the other key stories we're having a look at, shares of meta falling to new 52-week low after a downgrade by atlantic equities today is also the company's annual developer conference. it's announcing the latest head set named cambria. >> there was a letter transposed there. the product will be mixed reality.

so it will combine virtual reality. there won't be any real reality. it will have augmented and virtual. it will be mixed it will cost $1500 it comes a day after "the new york times" out with an article on the company's shift to the meta verse meta staff refer to the projects as mmh or make mark happy. >> which implies that the head set might be a flop. but he wants to push into the meta verse >> i don't really see myself -- i don't know that i see you wearing one of those head sets around the house. >> no. not for $1500. >> how do you like your reality? >> real and free >> augmented virtual

>> i'm sure when the technology is better, there will be true applications there are probably true applications in medicine we're just thinking about the consumer >> we're thinking of it as a goof. >> exactly yeah >> a nice way to go see moab, utah, or something >> all right >> "fast" starts right now >> stocks have been making a big come back throughout the session. the gains have now gone away this is the make or break hour for your money welcome to "closing bell." live today in washington the dow is positive. the s&p 500 is now down about three quarters of 1% the nasdaq is also falling down 1.4% we'll get to the bond market in just a moment. there is the impact on the u.s we see continued rising rates. there is the ten year. 3.9% pressure on u.s. bond market take a live look at th