think have bottomed. we have 5% dividend yield, you get to buy it cheaper than i did last week, 11 times in a business that just has insatiable demand for hard disc drive storage. >> that's to your point earlier, you might be able to get things a few dollars cheaper, but if you're a long-term investor, it's not going to make much of a difference see you later on today, everybody. "the exchange" now >> welcome to "the exchange. inflation does not seem to be going anywhere just yet. the consumer price index rising more than expected consumer prices, the big one that's due out tomorrow. all while signs here point to more than fed tightening as the bank of england still easing, trying to pump more money into the system we'll examine the fallout and try to connect the dots. the nasdaq once again underperforming, but trying to snap a five-session losing streak the index near two-year lows what will it take to finally

turn these markets around? and in the middle of it all, is earnings season about to kick off? you've got all the big banks on deck our trader will give advice on how to trade those earnings. we'll get to all of that and more in the next 59 or so minutes. let's begin with mr. dominic chu and the market numbers >> we see some modest moves here overall. now, brian mentioned the multi-day five-day losing streak for the s&p and the nasdaq so if this were to stay at these levels right now, we would snap that streak, but it wouldn't be by very much and it wouldn't be dramatically, sothat could be good or a bad thing. the s&p 500 is a hair below 3600 up nine points, about one quarter of 1%. we were up about 20 points at the highs of the session and down about 15 at the lows. tilting again towards the higher end of that range, the dow industrials up one-half of 1%, 129 points the nasdaq composite 30 points higher, 10,454 about one quarter of 1% gain

modest moves right now some of the concern right now that's playing out more heavily than in other parts of the market is in the commodity complex, specifically economically sensitive or cyclical parts west texas interneedmediate crus down as this growing narrative about a recession, not just here in the u.s., but globally as well starts to weigh on these markets. you have a lot of that fear priced in. the business level producer price levels and the consumer price index levels tomorrow, you have wti crude, kind of at the center of that trade right now, about whether or not we see prices start to fall for those commodities. crude still continues to show some near-term weakness. and one stock you want to pay attention to today is lyft the reason why is because it's up 6.5%, 7% so far today off the session highs. but lyft the ride sharing company hit a post-ipo record low. never been as low in yesterday's session. it's bouncing a bit today, helped in part by analysts at gordon haskin who upgraded this

stock to a buy they think that the company gets better off as the driver shortage starts to alleviate and it could be priced for a good entry point so watch lyft, the gig economy in focus, but again, one of a con concert of different stocks, brian, that have been high-profile at one point and are now at post-ipo lows lyft is one of them getting a bounce today back over to you >> thank you very much, it is a big week for the markets the contraction pi inflation data has been moving markets all year friday also the day the bank of england will end its bond-buying program. and you remember, those headlines yesterday spooking the markets a bit. we don't talk a lot about the uk bond market, but it's been a big deal globally and we've got to know how much of a factor that might become here, is the uk contained or is this a real risk of global contagion? let's talk about it all and figure out what to do here joining us, sandy villery, peter

boockvar, cnbc contributor i'll start with you and go to a few questions and go to sandy. the bank of england stuff and these ldi, liability-driven investments, these are all new even for market participants, it's wonky in plain terms, can you explain to us what has happened in england and whether or not you view that as a real contagion risk for the u.s. markets? >> so, simplistically, mention funds in the uk, not all but many, use this ldi that you just mentioned as a way to enhance returns in a low-interest rate environment pre, what we've seen this year. in order to meet their obligations. so when we saw a sharp jump in guilt yields at the end of september, that created a lot of margin calls they were for sellers of guilt the bank of england had to come in to calm things down a couple of weeks later, bailey

said, okay, friday is it and based on the action in the guilt today, maybe, just maybe, we've seen enough deleveraging to put this fire out for now as 10 and 30-year guilt yields change unclosed on the day as for what it means for us and other central banks, it's the central banks trying to extricate themselves from such extraordinary monetary policy over the last couple of years, that they're going to be plenty of bumps and accidents along the road the uk had theirs and we're going to have ours here, as well >> why do you say that we're going to have ours here as well? what are you seeing that would make you say that with what sounds like a pretty high level of confidence, peter >> well, when you go a long period of time with extraordinarily low interest rates, you encourage a lot of people to borrow money and now that you have a higher cost of capital, those that borrowed too much, those that borrowed so much where they now have to refinance in a much

higher rate environment, those are where the accidents are going to be. also, we have to watch to see if there's any dislocations in the u.s. treasury market we're losing three key buyers. the fed, banks, and foreigners so we need other buyers. we'll find other buyers, it's just a question of what price and whether yields need to go higher in order to entice those buyers to fill that gap. >> sandy, you're a portfolio manager focused on u.s. stocks now you're watching cnbc and seeing these headlines about the bank of england and pension funds and guilts what do you make of all of this and how is it impacted, if at all, how you manage your money what are you watching most closely right now? >> yeah, so we do want to make sure there isn't a lot of contagion. it's interesting to see the bank of england going from trying to stave you have inflation, to back there trying to buy bonds, which is quite a shift when they're trying to have yields go

up so we keep it in mind, but we want to focusen u.s. stocks. you can see what the dollar has done and so, we're dialed into the domestic companies >> so you're not worried -- i'm not going to call it a lehman moment, because that was much bigger, much more different. it doesn't sound like you're that worried about what happened there impacting some of your core holdings here >> we're always trying to figure out what that black swan event could be if i knew it wouldn't be a black swan event, we're definitely focused on doing what we do best, and we're just going to keep an eye on french italian bond markets, to see if there's

any contagion from all of this so we just want to focus whan we do best, which is stock picking. right now, sit tight i want to get to breaking news on bond auctions rick santelli tracking the action at the cme and how this auction has looked you gave it a c plus because you said you were in a good mood yesterday. what about today, rick >> i'm in a good mood today, but still a d plus, a dog plus very, very unique auction. let's go through it, shall we. 30-year billion ten-year notes, technically, nine-year, ten-month, the reopen. the yield, 9.39. when it was issued trading, straight up 1:00 eastern, right before the auction button up around 3.91 1/2. the ultimate yield at the auction was higher higher yield means a lower price. big mark-off for that. and the bid to cover, you can find one of the same size in july of this year, but to find a

smaller bid to cover, you have to go all the way back to dis of 20 2020 this is foreigners, is the lightest since november of 2020. where direct bidders like pension funds and entities that could put bids right in, they were at the best level of 23.5 since 2014 and dealers took a big amount at 19.7 versus a ten auction average of 15% so not a great auction tomorrow, we clean up with the 30-year bond auction and with cpi tomorrow wicked understand why many investors thought, maybe i'll just dabble in the secondary market and not be too aggressive. back to you, sully >> d-plus from professor santelli thank you very much. let's go back now to sandy and peter. i guess, peter, the thing about it is, and i'm not trying to make a thing about it, because it may turn out to be nothing, but i do remember 2009 we were talking a lot about

greece in 2008 everyone said, it's greece, nobody cares a couple of voices were there and i went over there in '09 and people were throwing molotov cocktails a to the banks and protesting rioting nearly every day. is there some chance at all that this could be a bigger story, either the uk or macro europe than we are thinking about, because these things don't hit you over the head. they kind of pop out of nowhere like a rat >> well, when you look over the last couple of years, where was the excess it was in sovereign bonds. it was an era of negative interest rates and zero interest rates. and massive qe that's where all the excess went and now we're seeing an unwinding of that massive bubble and it's going to lead, as we've seen, to a higher cost of capitol environment. and that many business models that worked when rates were at zero and to your point, they were negative, don't work at

current rates. and while current rates are still historically low, they're much higher than they were and that's the new environment we've become accustomed to households now having to pay 7% on a mortgage rate, for example. >> yeah, and we're lucky we're not in the uk, where a great percentage of borrowers are going to -- they take up a lot more a.r.m.s than we do, adjustable rate mortgages. they'll have -- millions of homes in the uk will reset next year probably at double or triple their mortgage rates. sandy, a couple of picks here. our viewers want to know what to do, a palomar technologies is a pool copper. you think these are immune to uk, immune to higher rates, immune to inflation. >> i like both of them palomar got downgraded by kbw this morning it's off a little bit. and that probably sets up as a pretty good opportunity to buy

it and pool is just kind of confused, people think it's a bit of a housing stock, even though 80% of their revenue is just the boring swimming pools two that i would buy right here. >> sandy, peter, gentlemen, good conversation appreciate it. thank you. now let's talk oil opec and global geopolitics. oil right now is a bit lower, down about 2.5%. this after opec actually cut its forecast for global demand growth this year for the fourth time since april but while this is a cut, keep in mind, this is a cut to growth estimates. opec still sees demand growing overall, but only by 2.6 million barrels per day. that's 460,000 barrels fewer than the previous forecast as for next year, opec is cutting its growth outlook by 360,000 barrels a day, although it still expects demand to exceed pre-pandemic levels now, this of course is not all that's going on with opec. because of their cut last week, the saudi u.s. relationship seems more in jeopardy

president biden talking about taking some kind of action against saudi arabia and more talk from congress about cutting off a.r.m. sales to the saudis because of that opec cut all of this as "the wall street journal" broke what could only be called really a blockbuster story yesterday that the white house apparently tried to make a deal with opec, saying that we would buy oil to refill the strategic petroleum reserve if opec puts off its cut decision for one month. which has some on the more cynical side saying, hey, one month, that's just after the midterm elections. obviously, there's a lot going on here. let's talk about it all. kayla tausche joining us in d.c. with some new headlines on all of this plus some stuff from national security adviser, jake sullivan kayla? >> president biden will be holding in-person bipartisan consultations with members of congress on the saudi relationship when they return to washington that's according to national security adviser jake sullivan, who said that because there are no pending a.r.m. sales to saudi

arabia, that no imminent decision is required there, despite many members of congress calling on the administration to halt any future deals that they would make with the kingdom. sullivan made these comments with the delayed release of the national security strategy sullivan acknowledged that the quickly evolving situation in ukraine made that timeline imprudent, in his words. the strategy does outline what it calls a decisive decade ahead with a focus on constraining russia, which it calls profoundly dangerous, and says definitively, that the u.s. will not allow russia to use nuclear weapons. the decisive decade will also include competing with china, which it calls the most consequential geopolitical challenge with technology, taiwan, and trade at issue sullivan said the u.s. must turn the page on the traditional formula for trade, and when asked for the status of tariffo

review would continue for several more months. so clearly the white house has a lot of irons in the fire here, brian. and they're trying to chart out this decisive decade and sullivan will make more comments on that next hour. >> i texted with a friend of mine who is sort of involved in and around politics in d.c what's it like down there? the response, quote, days of rage that's literally what i got back last night how would you describe the mood in the white house and in and around all of this right now, kayla? >> i think it depends on when you check in with people who are working in the administration or people who are on the other side of the aisle certainly, you know, several months ago, republicans were feeling very good about their chances in the midterms and were essentially talking up what they viewed as an historical flip in the midterm elections, even bigger than back in 2010 but then you fast forward to august, democrats had a halo effect they passed lots of key pieces of legislation the president's approval rating

was ticking up, gas prices were going down, and democrats were feeling very good. now, it's really a toss-up, brian, depending on who you talk to you have a lot of negative impacts for the administration, but you also have them trying to pull certain levers, like starting the process for student loan relief and removing prior offenses for simple marijuana possession they're trying to make good on campaign promises, those things they can do withexecutive privilege. soon enough before the midterms so it's in voters' memory, but it still remains to be seen whether that will have a material impact when voters go to the polls in a couple of weeks. >> you and i were kind of team working last week. i'm surprised that story is not getting more attention in other parts of the media i mean, that's a pretty big deal, if you believe the reporting in the journal, they had four reporters, by the way, two of whom i know personally and do quality work that were

trying to delay the opeck cut by making a deal with them that will buy more oil from them to refill the spr that seems like a really big deal >> four reporters and three contributors they had a lot of people making calls. the fact that there was a delay proposed for one month, that is not a coincidence. i asked brian deese whether the decision to extend out the drawdowns from the strategic petroleum release into november when they were supposed to expire or end in october, whether that was directly tied to the midterms and he did not take the bait on that question but it is clear november 8th is the date that is circled on the calendar and anything they can do to move the needle for voters between now and then or at least avoid some of these scenarios where things like gas prices would go up before then, they're trying

to do whatever they can before then so i think it was a blockbuster story, especially because oil majors have been in discussions with the administration about potentially selling oil to replenish the reserves by fourth quarter of next year so, there have been these discussions with a lot of u.s. companies thinking that they were going to be the ones replenishing and instead, the u.s. was talking to saudi about doing it. we'll see how it pans out from here, brian. >> at 75 or slightly below on brent krcrude, when we talked about it a couple of years ago, it was called a bailout for big oil back then! now we're at 75! or 95! whatever it might be, kayla. it's politics. it's chinatown >> and it's unclear where the price is going to go from here and people i've talked to within the administration say it takes several weeks to affect a decision to actually buy oil to put back in the spro so even if it's at 75 for a couple of weeks, that's not seen as a long enough time to

actually put that plan in motion and there's an expectation that oil prices are just going to go up as we go into the winter here so who's to say when they're going to actually do it? >> well, we can say that i don't think that this story is anywhere near being over kayla tausche, great stuff, as always kayla from the white house pretty big story there if you didn't read it, by the way, go to the journal and check it out all right, one block down, many to go on this program and coming up, if you're still thinking of betting on big tech, our next guest says, look at the platforms -- don't look at the services what that means ahead. plus, mortgage rates for many now above 7% what it means for mortgage resets and new buyers ahead when "the exchange" rolls on, right after this bc announcer: "the excng o hae"n cn ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina?

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all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're

sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. welcome back op i'll tell you something you already know tech has been a wreck. markets have had to revalue almost all estimates this has hit higher valuation tech stocks. one big ticker etf hitting at another new low on tuesday, closing at its lowest level since november of 2020, but there is still opportunity to be had when it comes to strategy.

he is betting on platforms over services let's welcome in james clockmock. what does that mean. betting on platforms i assume you don't mean shoes? >> by platforms, we define it as, the more customers a business has, that results in increm incre incremental time savings to the customers. you can think about zplo, more suppliers, better experience apple, more developments and on the smaller side, a company like snowflake something like accusign, they go off on trying to get as much market share as possible but at the end of the day, their ultimate differentiator is

price. that's how we're distinguishing where we go within tech, but obviously it's a much broader ma macro. >> stocks just keep going down not every day, but feels like close to it right now. before we get into certain platform-esque ideas, can the broader tech sector recover until interest rates stop going up >> yeah. >> we think so, there's absolutely every reason to continue to be optimistic and bullish in terms of these services are inherently deflationary so the world is going to continue to go in that direction, but ultimately, right now with tech, you have to take a more defensive posture, lower deration, go offbalance sheet, and invest in those companies with the best visibility into earnings and cash flow and ultimately, ideally, also have a secular tail wind to them so we're in uncharted territory

right now. if you look at -- the fed raising rates, you know, if you've had historically over a 200% increase in rates, you know, that's resulted in a deep recession. if powell goes forward with 150 basis points potentially by the end of the year, that's potentially a 5,000% increase in rates. we're in uncharted territory right now. so we're taking a defensive posture and being more tactical. >> is it a good example in looking at some of the companies that you own and talk about, would a good example for our viewers and listeners of a platform be an airbnb? i don't know about you, when i look to travel with my family, sometimes i bring my dogs, i don't go to a hotel website anymore, i go to airbnb. i'm not giving them a plug, i'm just simply saying, it doesn't appear that they have a lot of competition. >> exactly >> it comes back to, does more users equal a better experience? in this case, with airbnb, it is a platform because the more supply you have, the better experience it will be for

customers. so absolutely, it fits that definition and it's a stock that we own are we going all in on it, as our biggest position, no, because we are decreasing duration, but one if you can stomach the volatility, it will cross over the long-term and we're still very bullish on it >> james chockma, looking at the platforms. airbnb is the word james, thank you coming up, are you thinking about taking a trip back to europe next year well, united airlines thinks you are. we're going to tell you what they're doing ahead of it, ahead. but right now, let's leave you with what is up and what is down jpmorgan, coca-cola and intel some of your better performers boeing, wall green, honeywell, some of your biggest laggards. "the exchange" is back with the dow up 75, right after this. - oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - [narrator] yieldstreet: private market investing.

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all right. we call it the data bank as you can see, welcome back i want to talk about these markets. and we're still in the green, but looking like hedge funds may want to take this market down again. the s&p 500 is up now just by four points. the dow was up over 200, at one point, up over 83. now we're in the green, but only vaguely. you see what happens in the last 2 1/2 hours of trading mixed bag, like the markets for the sectors as well. the rate-sensitive groups, real estate, utilities, they're the ones that are getting hit the most, no surprise there. consumer staples are the ones that are sort of outperforming, thanks to strong results from names like pepsi, which came out this morning pepsi, by the way, is having its best day since april of 2020, after the company posted a beat on the top and bottom line pepsi also hiking its prices

higher prices for chips and soda offsetting lower volumes and moderna is partnering with merck to develop a vaccine to treat cancer patients. they expect to report data let's hope for everybody out there suffering from it that that indeed works. shares of warner brothers discovery and and the stock is up on the layoff news. let's get to a cnbc news update with tyler mathisen. >> thank you very much here's what's happening at this hour the biden administration considering a total ban on russia aluminum following drone strikes across ukraine aluminum futures spiked as much as 7% after pairing those gains.

on the news with shep smith, a look at who russia is pushing into military service to fight in the war in ukraine. plus, growing dangers at europe's largest nuclear plant tune in tonight at 7:00 eastern. shep smith will bring you the news las vegas raiders davante adams has been charged with misdemeanor assault for shoving a photographer to the ground after monday's loss to kansas citi police say the shove was intentional and caused whiplash and a possible minor concussion. adams apologized for the incident on monday, almost immediately. and scientists have transplanted human neural tissue into rat brains and created hybrid cells. "the wall street journal" says the experience opens up new ways to research brain development and diseases of the brains it also brings up ethical questions about animal welfare brian, much to think about >> there was a movie years ago, tyler, i think 30 years ago

called "rat boy ". now i'm going to have to go back and watch it >> i remember vaguely. >> like made for like a hundred bucks. still ahead, interest rates sitting at a 15-year high. affordability overall at a 37-year low. that combo having a big impact on the mortgage market we'll talk about the implications for the overall state of housing coming up all of this as the 30-year fixed rate mortgage for some is back above 7% today and a reminder, all throughout hispanic heritage month, we are celebrating some of our cnbc teammates, friends, and contributors here's payne capital's senior wealth adviser, courtney garcia. >> my grandfather emigrated to the u.s. speaking only spanish in hopes of obtaining a better life for his family. two generations on, i'm happy to report that he achieved those goals. what made that possible was a strong work ethic, knowing the value of a dollar and savings,

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welcome back as you know, mortgage rates have more than doubled over the past year with the 30-year back above 7% in some cases dinah olick joining us now with a look at the latest demand data is there demand data, diana? >> no, i mean, there's data, just no demand look, just when you thought demand can't go any lower, you get another weekly report from the mortgage bankers' association, and now we're seeing more interest in riskier loan products. but first, take a look at the 30-year fixed. over 7% according to mortgage news daily it started this year at 3% as a result, refinance demand dropped another 2% last week, down 86% from a year ago, because there are just so few people who can even gain anything from doing a refi barely 150,000 borrowers who would qualify have rates higher than today's, and that's according to black night now, mortgage demand from home buyers also fell 2% for the week

and it was down 39% from a year ago. higher rates just make an already pricey housing market pricier which is why borrowers are looking at those risk areas loan products. the share of adjustable rate mortgage applications remained high last week at just over 12% of total volume. the a.r.m. share of applications was around 3% at the start of this year and had been for several years, because rates had been so low that borrowers didn't need to take on any additional risk. not so much now. the rate on a five-year a.r.m. is now 5.5%. so you can see the savings a.r.m.s are considered riskier because they do inevitably adjust, but they can be fixed for up to ten years, so it's still a pretty safe product. >> good enough diana olick, not a lot of demand in the demand data diana, thank you so those higher mortgage rates that diana talked about is pushing home affordability to a 37-year low. new data from black night shows rate lockdowns in september fell about 10% from august, sitting at the lowest levels since december of 2019

what does this mean for the housing market, joining us now is andy walden andy, you just heard diana quote your data. basically back to you. i mean, how would you summarize the mortgage market right now? >> i mean, demand is down across the board. you saw three different things take place over the last couple of weeks affordability hit the lowest level in 37 years, refinance incentive hit the lowest level on record. and more importantly for the refinance market, it became more expensive to utilize the equity that we have in homes, which is driving the majority of refinance equity right now for all of those different reasons, you're seeing demand poll significantly down across the market >> is this going to level off? there's obviously some kind of rate shock where buyers may be kind of in a state of disbelief, but if the rates stay here for a couple of months or a couple of quarters, and you really want or need a home, do you think there's going to be sort of a

reluctant acceptance that this is where we are, it's going to be a little more painful, might have to cut some costs somewhere else, or the mortgage activity will pick up, or is it going to be crushed for year? >> i think we are nearing a bottom, if you look at what's been going on with interest rates, you're going to reach a low over the next couple of quarters, and we'll see it flatten out, but simply put, the housing market in prices today aren't built for a 7% rate environment. so you're seeing it choke on those 7% rate thresholds in many cases, it's not a decision borrowers are priced out of the market, and it's simply unaffordable. so i think you'll see the housing prices react to bring us a little bit more in balance i think over time, you'll see incomes grow to bring us back into balance, but it will be a movement across the board. it will be a price movement, an income movement, and it's likely going to take rates coming off at the current levels to restart the housing market >> are you seeing homeowners, home sellers drop the price? nobody buys a house based on the price, for the most part

they buy it -- unless you're buying all cash -- you're buying on the monthly payment >> yeah, and you are seeing some interesting movements by sellers right now. so from really may through july, you are seeing a lot of inventory return to the market and you're seeing sellers kind of continue to list their homes, they've really backed away, in august and in through september, as well. and it's really held inventory relatively flat. and so you're certainly seeing some pushback from sellers saying, if i can't get the price i was getting in may, june, july of this year, i'm not interested in selling, especially if i'm going to have to take on a 4 percentage point higher interest rate you're seeing sellers kind of back away, which is putting a little bit of sustained upward pressure on prices but that being said, i think it's going to be a cool-to-cold winter, both in terms of volumes of home sales and in terms of prices here over the next few months >> winter is coming. anyways, andy walden, black night, thank you very much >> you bet coming up, international travel is back in a big way. and united is making a big bet

that trend will not only continue, but improve. so we know air travel has been a bit turbulent. the headlines next with phil lebeau >> now, cnbc trend tracker you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those.

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and market, not down by much, but they are in the red. the dow slightly positive, up 26 points we'll see where the markets end up some encouraging signs that the travel industry is really returning to normal. united airlines expanding international routes beginning next summer. phil lebeau joining us now with the details on what could maybe, maybe throw a wrench into some of those plans phil >> brian, you were just in europe i mean the flight -- i'm guessing your flight and the airports there, packed, correct? >> everything packed, been packed for a year. >> and i know somebody who was going to paris at the end of this month they're expecting it to be full on the plane the bottom line is this. travel, transatlantic travel that started this summer, it's continuing now does it continue in the spring hard to say, but united is expecting that there's going to be plenty of demand next summer. summer is usually the peak time for transatlantic travel and that's why the company has announced that it is once again going to be increasing the number of flights and destinations when it comes to

flying to europe here's what united will be doing. its capacity will increase another 10% next summer versus the summer of '22. nine new nonstops, three new destinations, including dubai, stockholm, amallga, spain. the bottom line is this, when you look at european travel, yes, we've seen the stories and the headlines about airports being filled with long lines, because they don't have the staffing over there. for the most part, that has calmed down considerably the airports have improved, their staffing, their restrictions are starting to come down. international traffic, however, and keep in mind, we're also including china in this, that's a big reason why it's down 35 to 40%. but as you take a look at united and american, remember, american reported yesterday that it's going to be seeing better than expected numbers for the third quarter. they are both expecting strong demand through the holidays. we will be hearing from united and american when they report their q3 results next week we'll also be talking with the ceos of those airlines next

week meanwhile, you've got delta. it reports q3 results before the bell tomorrow orning wouldn't be surprised if we see them report strong revenue, higher than expected margins lots to discuss with delta ceo ed bagostion you don't want to miss what he has to say a "squawk box" exclusive ed's always very candid about the state of the economy curious what he thinks about what we're seeing in terms of, you know, these projections, brian, that we might be sliding towards a recession. does that impact future bookings we'll talk about that with ed. >> looking forward to that and also talk about airline fares. they're still unbelievable let's pivot a bit. gm with some really interesting news i'm not going to say that gm wants to become tesla, but they're making another move, which means that they're trying to become sort of like a tesla >> well, not necessarily like tesla. i think all automakerses realize, as evs become more popular and prevalent, and we're just scratching the surface right now, as that happens, more

people will have a home charging station, maybe a home power wall, some place where you can store energy and what gm is doing with sun power, with pg&e out in california, which they are working on right now, is the ability for you to take the power from your vehicle, let's say you have an electric silverado in a couple of years, you can take that and give it back to the utility or power your home. the silverado has the ability or will have the ability to power a home for 21 days think about that as we see more of this instability with the grid, brian, that's going to become much more important, and you'll see people say, i want to get into the energy ecosystem, whether it's general motors, whether it's tesla or ford or whoever. >> phil lebeau, appreciate it. thank you very much. looking forward to the interview tomorrow with delta ceo. still ahead, third quarter earnings just around the corner. now many fear they and the guidance from companies may not be pretty.

how exactly do you trade it right now? our next guest brings me two picks, including this tech company down more than 20% this year, which he says could be a oduyig now the name, the solve, the mystery chart, next. personalized financial advice from ameriprise can do more than help you reach your goals. wow... we can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about.

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third quarter earnings season around the corner our next guest is looking for way to say safeguard portfolios. his expectations are pretty tough. let's bring in our cnbc contributor, we gave a mystery chart going into the commercial break. the answer to the tech giant that you think is a good long-haul company? >> it is apple. >> i guessed cmgi. i was wrong. >> very, very wrong on that one. it's a bellwether name of the megacap, it's been a there was a bit of a let de.

with the 14 pro max, i think that's poised to be a top seller we're racing rates, there's opportunities, i believe, ryan >> is there any risk to apple? i know the bull case, what is the risk someone holds on to their phone for ten years? >> that's the big risk, the consumer that's an area that investors want to be watching, how they're show consume he demands. like other companies, like pepsi, they're seeing resiliency in their demand. and so that may cut into consumer demand. that's the big risk -- so q3 --

q4ened q1 2023 could be an opportunity there. i was going to asking about pepsi, but you just slid it right in there they're raising prices >> yes, they are raising prices. they're able to show resiliency in their demands and pass on that they actually raced projects for full-year revenue growth so they're showing strength. this is an opportunity for investors to have part of that possessioni and cola, i think you'll see similar strength there in the stocks. that's a strong quarter, and it's something that shows to what kip of environment we're in right now.

delano, always good to hear from you. thank you. intel announced back in june it was pausing all hiring in the client computing group shares down more than 40% since then now reportedly, job cuts, not just hiring pauses we have that story, next ncial p. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. the new iphone 14 pro is amazing. so you can enjoy more of...this. 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. every business gets at&t's

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welcome back continuing supply chain problems are decimate sergeant shipments of pcs worldwide they fell 15% in the third quarter. shares like intel down more than 50% this year. after announcing a hiring pause back in june, intel not reportedly set to cut thousands of jobs. kristina partsinevelos joins us, they went from a pause to a cut. >> intel's main business is pc

processors with demand hitting a company low, they're forced to make some tough choices. intel tense -- they won't comment on the rumors, but thousands will be announce around the q3, expected to be company-wide with sales and marketing taking the biggest hit. i was just at that campus two weeks ago in arizona how he need to fill 10,000, and 3,000 new corporate workers for the foundries, so that puts them in quite a spot forms accept government money from the chips act so it can invest, to regain its prior leading positioning, while also cutting expenses, especially not sacrificing the world on the new products. so intel down over 50% toughly off 2.5 person, but the

potential layoffs comes as the tech sector heads into the crucial holiday period this year, though? >> also a new structure and some of the factories, the one you were literally just in >> these are the chip manufacturers. they will work like contract operations, build chips not only for intel, but also for other chip companies previously intel used these foundries almost exclusively this shows intel is getting serious about becoming a manufacture hub for owl and not just favorable access for their products accounting purpose will change, it's thank you. "power lunch," their shift beagainst right now. the changing of the shift has been accomplished. welcome, everybody

to "power lunch," along with morgan brennan. >> hi. >> nice to have you here i know you've been back on your main show, but first time here in a while welcome. >> thank you the minutes are about out in about 12 minutes they'll look for hints on when the central bank might pause the rate hiking campaign. >> and just a quick check on shocks, flirting with the flatline, but let's guess right to steve liesman. >> minutes of the federal reserve's september meeting showing that many participants stressed the niece for the fed to keep tightening even as the labor market slowed. they said the cost of taking too many action outweighed the cost of doing too much when it came to flighting inflation once a restrictive level was reached, there was general agreement it would be appropriate to maintain that level for some