rese . good afternoon welcome to "power lunch. i'm tyler mathisen along with contessa brewer. here's what's ahead. tesla expected to report near record profits but with disappoint deliveringries and rising borrowing costs we're taking positions ahead of one of the reports this season. a venture capital player with us to discuss the industry, deal making and the approximately 70 billion that vcs put into clean energy startups over the past

two years. "power lunch" exclusive by the way. >> thank you for that. stocks pressured by higher yields take a look at the dow jones industrials off 224 points right now or three quarters of a percentage point the s&p 500 is off by a percent and nasdaq has dropped by 1.3% in the bond market, the 2-year yield hitting a 15-year high, the 10-year more than a 10 year high 4.11% and 30-year yield to an 11-year peak with the yield at 4.11%. oil prices rising as the president outlines plans to bring them down. the oil services etf up for a third straight day led by baker hughes and liberty energy is up 5%. >> thank you very much let's get to tesla, earnings report this afternoon could shed light on the company's growth outlook. the stock down 37% this year and off nearly 50% from its 52-week

high the company coming off disappointing deliveries, facing rising borrowing costs, production snags, questions elon musk's twitter purchase and focus on tesla let's bring in tim hagan with "the wall street journal" and george with kanico he has a buy rating on tesla with $304 price target george, you're a little more optimistic than your peers >> our view is a 12 month to long-term view and we think that the company's incredibly well positioned to take advantage and leverage the ev revolution that doesn't mean near term we've talked about in several notes some of the bread crumbs out there that we and others have picked up, that would lead you to believe there's been a demand slow down, at least in china. you know, we're also worried about a potential pocket in the fourth quarter in the u.s. from consumers if some wait for an ev

tax credit to kick in, starting in 2023, which by the way, tesla buyers haven't had available to them in full since the end of 2018. >> but, george, this may come back for those buyers, you say, after the start of the year? >> correct. >> if that's the plan? >> yes we're worried if some buyers decide not to take advantage of q4 buying period and wait until the credit comes back, that that may kick in some demand and push it out to the first quarter of 2023. >> tim, is the stock being punished overly for the kinds of hair balls that we cited there in the intro in other words, delivery snags, production snags, questions about whether mr. musk is sufficiently focused on tesla or not? why is this stock down as much or just basically the market is down or are they over focusing

on those hairballs >> i think there's a lot of drama around the stock and elon in general you laid out a whole heck of a lot ofdistractions and issues before him and the company but, you know, this is a growth stock. it's long been a growth stock story. it comes down to the issue of supply and demand. real concerns about the demand going into the end of this year and too next year. tesla for a long period of time has said it's always been a supply issue for them. there's plenty of demand out there, they just can't make enough cars. it's going to be tested. they have the factories in germany and texas coming online, they have china ramping up and now we're going to see are there people out there who want to buy this vehicle, the model 3, the model y, at the high prices we've seen over the past six months or year or will the company have to slash prices will the company have to slow down production? will it be able to keep the 50% annual growth rate towards

becoming the world's largest selling automaker. that's the real question >> i'm curious about china because it's largely seen as the growth engine for tesla, and yet we just saw xi jinping double down again on the zero covid infection policy, which has hurt the economy in china we have seen the delay and we don't know when they're going to come out of new economic reports out of china, so tim, what's your sense of how the uncertainty around china plays into tesla's immediate future? >> i think we've seen some investor concern over the last week or so trying to parse its numbers, what the level of demand for tesla vehicles is in country, especially as they've been ramping up production, and, you know, that is kind of playing out in the fact that you're seeing the amount of time it's taking to get vehicles to customers decrease to several weeks from several months. that's raising concerns that maybe demand is slowing, which could be a huge problem for

tesla if that's really the case going into next year. >> george, i just want to use your last name to show i can pronounce it - >> well done better than my mom. >> give a second - >> better than my mom. >> let's - >> two-take tyler, they call me. let's talk about currency, you don't think of necessarily as a tesla headwind, but it could be, cooperate it >> -- couldn't it? >> sure. we've had a lot of strength in the dollar and the company sells plenty of vehicles outside of the united states and there might be near term issues around currency in the translation there. we don't think it will necessarily be a profit issue, but maybe some demand destruction or revenue destruction in the near term i want to say, just to point out about the demand and what they'll produce next quarter, we think that the whisper or the bar is around 400,000 vehicles

for q4 deliveries they'll get that done but the nuance is the commentary on the call which will be important to listen to orders are not a metric that tesla reports, and we would like to hear from them about what they're seeing out there and how the second derivative of order growth has changed, if at all. that's up to the company to tell us about and elon musk to report back to us another final point to make, too, what we're debating here is whether or not -- whether or not tesla will grow by 50 or 40 or 30%, but we have a high degri of conviction they have grow. if we have a recession or going through a recession, it will likely moderate tesla's growth, but competitively this may be a really good opportunity for tesla to do much better than their competition, who may have difficulty going into a recession. >> we have a 304 price target. the stock in the 220 area right now. george gianrikas, they have

spelled it phonetically in the teleprompter. >> well done, thank you. >> tim higgins, thank you as well. the fed releasing its beige book let's get to steve. >> thanks very much. a mixed beige book where they say economic activity expanded modestly, that is an upgrade from the prior beige book. this collection matters from the federal reserve districts that said it's unchanged and now saying it grew modestly. four districts said activity was flat, two said they cited declines due to high interest rates, supply and disruptions and retail spending flat across districts and auto districts saying sales were sluggish part of it limited inventories with higher prices one bright spot standing out with unkwlivcle language, travel and tourist language rose strongly, true with the planes all over the place this is interesting as well,

manufacturing held steady due to easing supply chain restrictions, and we haven't heard that in a while. that's pretty good news. however, back to the bad side of things, i told you this was back and forth, rising mort gait rates and rising prices, expansion at a moderate pace but cooling reported in labor demand across some of the districts scattered mentions as well of hiring freezes, but labor market conditions overall were said to be tight some businesses said wages were rising due to inflation as well as labor tightness wage growth was expected to continue on the prices front they remain elevated some easing noted across severa districts, significant input prices were in a variety of industries and then again, this contradiction, solid pricing power reported but some consumer pushback overall expectations for price increases where they would

generally moderate over time i don't know, guys, maybe a touch of progress here in the fight against inflation with some comments about supply disruptions easing, but you don't want to take it too far. the other side of that story is still also mentioned quite a bit in this report. >> your reporting is a little bit like watching a tennis match back and forth here, steve i'm curious when talking about supply chains, early in your report you mentioned that a couple of the districts reported some problems because of supply chain and then supply chain easing what's your expectation moving forward that will stop being a factor in what we hear reported? i guess i will respond with my forehand as opposed to my backhand i think there is some progress out there. i mean, before this beige book, we heard there was some progress being made and if you have

manufacturers saying we can manufacture things because we have the stuff to manufacture it, i think that's an important part of the story. this is not going to clear all at once, and by the way, the u.s. economy being a very dynamic one, not everything is going to get better all at once to the extent it does get better i'm not surprised to see a mixed beige book and i would expect a mixed beige book on the cups of things improving whether or not this is the one that says all are getting better at once, not yet you would expect to see incremental progress, but we went into this mess, this is the kind of beige book we had as well with the idea there were scattered supply disruptions mentioned by people. that was before supply disruptions became so huge maybe this is a part of a turning point. i don't want to take it too far but make note of the progress in here especially after a series of beige books and all kinds of corporate reports that everything was sort of awful all over

>> all right steve, thank you for that report appreciate you jumping on with it. >> coming up, is the pain over for netflix? the stock up 14% after adding more subscribers than expected that wasn't the only surprise. plus, creative bond offerings, carnival wants to refinance a huge pile of debt but this time around there is a catch. before the break, shares of the hair care company olaplex cut in half after slashing its sales forecast more "power lunch" some two minutes. .

stocks off their lows on the session as treasury yield hit multiyear highs. it's important to stay invested in equities in spite of the volatility let's bring in market strategist hugh johnson and chief economist with hugh johnson economics. great to see you today we had steve liesman on with the fed beige book and the headline there was some expansion, modest expansion, in economic activity, hugh what does that do for your thesis about just staying put in equities >> well, it worries me when you start to see numbers that are getting a little bit stronger, whether we measure it by gdp or measure it by employment because that means the federal reserve is likely to be thinking about or considering raising their so-called terminal rate, which

really means their terminal rate right now is 4.4% for 2022, 4.6% for 2023, and when you start to raise your terminal rate or the fed goes a little bit further than we currently expect, that means longer term rates measured by the 10-year treasury going to move higher and that means the upside potential for stocks is going to be lower. the big risk right now in this market is we know or have a good idea we know what fed is going to do, but if they go further, they say they're resolute, if they go further that raises a big risk to the stock market and noertsds upside potential gets eroded. >> we also heard that travel and tourism rose pretty significantly here, strongly the word that steve used at this point. to that point, we've seen consumer discretionary among the sectors that have out performed. where would you feel comfortable investing in equities right now? >> well, i would still feel

comfortable, i think you've got to sort of split it. you have to recognize that there's risk now and you have to have a little bit on the defensive side don't worry about consumer staples or utilities as good defensive sectors. at the same time what i'm worried about is i think in time we're going to see a hard landing and not right now, not when the numbers are like steve is pointing to, but in the first and second quarters we'll see a hard landing under those conditions we're likely to see at some point a turn higher in stock prices so you don't want to be all defensive. you want to look at some of the things working even right now, such as industrials, industrials that are performing well on a basis, high up on the performance ladder, as is consumer discretionary take a look at those two you have to have balance now and recognize you're getting towards the end of the bear market, towards the start of a bull market, and you've got to be kind of positioned a little bit on defense and a little bit on

offense. >> let me ask you a tactical question, hugh say i am scared, i'm worried about a hard landing, and i'm worried, even though my equity portfolio has been cut by 20% this year, i've lost 20% or thereabouts, and i want to sell right now, how do i go about doing that do i sell the same way i might buy, which is to say sort of using reverse dollar cost averaging? if i'm at 70% equities and want to get to 60 how do i do it smartly? >> the same way you suggested, tyler. the answer to the question is a reverse dollar cost averaging and the main thing you said which is implied in the numbers you just gave me, going from 70 to 60%, in order to try to sleep at night that's a good idea if you can't sleep at night, but let's do it in stages. do a little bit now, do a little bit maybe at the end of the fourth quarter and at the end of

the second quarter one thing you don't want to do, implied by what you say, is make a significant wholesale reduction in your allocation equity the reason i say that is because i think we're, obviously, i think we're closer to the end of this bear market and the start of a bull market and i would not want to see you burn too much of your equity position or upside potential. >> that would be a rookie mistake of the sort i'm most prone to hugh johnson, thank you for the wisdom. >> you're welcome. let's go to our tech rundown. netflix shares spiking after surprising investors with its subscriber editions and said it was optimistic about its ad business apple set to report next week as shares stabilize following a report the company is cutting already cutting iphone 14 plus production and meta reporting in a week as their recent metaverse event failed to impress investors. here to discuss it all, laura martin, senior internet and

media analyst. good to have you with us let's talk netflix first the stock has been on a nice ride recently. though, off its highs, obviously. what do you make of netflix's numbers and what do you make of the fact that they say they're not going to guide in the future, as i understand it, on net subscriber ads what does that tell you? >> soit tells us, despite the fact that they're cracking down on password sharing and the fact that they should ad subs from their lower cost $7 a month tier, they don't think they're going to add net subs which surprises us they will focus on revenue and on the pnl, but we're very -- we're concerned about that because if the $19 tier downgrades to the $7 tier, you need to add two new subs to equal the loss in the monthly premium tier in the u.s. which is their highest area.

>> go ahead. i'm sorry. >> i just want to say, they're arguing that only $10 subs will downgrade to the $7 tier but the studies from harris and samba, all show that 50 to 60% of netflix subs are saying they're interested in taking the ad driven tier which would be a huge down draft in revenue for them. >> you have a hold on this stock. is this a hold meaning you're comfortable owning it here or one of those wink, wink holds that is a sell >> well, on today's strength we would be sellers, answering your question of the prior guest, selling meta and selling netflix into this strength. >> let's talk about apple then the company is reporting next thursday investors will get more information on the iphone 14 production, spent a lot of time talking about the watch instead of the 14. >> 14 was very unimpressive. i couldn't think of a reason

somebody should upgrade to the 14 a lot of people when they got the $800 windfalls from the government during covid bought an apple iphone so they've sort of people aren't at the point they need to replace those phones they bought during covid yet. i expect the 14 to be weak in addition to the fact that we might be going into a consumer recession. i expect it to be weak sales. >> i will focus on a niche, they are focusing on their women products so they were talking about the watch's ability to track ovulation and menstruation and all that it seems odd timing given the court's reversal of roe v. wade and women canceling their apps that do the same thing. >> you know, what i would say about that, is that i think they're seeing maturity in their watch product. they've been targeting it towards fitness which is a little more male so they're looking for products -- what happens when you buy an apple watch it locks you into the apple ecosystem because your

watch talks to your iphone they're trying to figure out a way to lower chirp or have a cheaper on ramp into the apple ecosystem. the watch is cheaper than buying an iphone. sometimes you buy the watch and then the iphone. they're going to try to double their total addressable market by adding women. good idea. >> one of the reasons we love you, we ask you a question and you speak your mind. i have to tell you, it stands out. now here we go meta, you admire mark zuckerberg's attempts but rate the stock as under perform, explain. >> 50 buys, we're the one sell our opinion liquidity only has value if you use it. we have his revenue under pressure because tiktok is taking away his user time and engagement and is his content creators and he's investing a fortune in something he says will not pay off until 2030. we're having margin pressure at the same time a revenue

pressure our attitude liquidity should be used somewhere else. go sit in something that one of your other guests recommends and use meta as a source of funds. >> i love it laura martin thank you for speaking your mind. >> my pleasure. up next a volatile year for casino stocks and especially with the constant shuffling with macau, reopening and shutting down, is it time to cash out or double down? carnival cruise is making a bet raising $2 billion in the junk bond market and putting 12 ships up as collateral they fail, you own a piece of a cruise ship. more "power lunch" in two more "power lunch" in two minutes. hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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shares of las vegas sands flathead of the company's third quarter earnings after the bell. three key issues i'll be listening for in the result, the casino capital of the world macau announcing its relaunching its visa program this fall and then xi jinping doubled down on the zero covid infection policy. next, singapore, which is now lifted its pandemic restrictions is seeing a jump in visitation marina based sands before the pandemic was the most profitable

casino resort and investors will watch to see whether singapore and pent up demand there is enough to help sands overcome the drag from macau. another key issue which the analysts will likely ask about, is a new york city casino in the cards here a license in the city up for grabs. there are sharp elbows out, but it could be meaningful because remember las vegas sands no longer has las vegas it would like to have a u.s. property once again. let's go to brian sullivan for the update hey there, brian >> hey there here's what's happening. the department of justice says seven board members of solar winds and four other public companies have resigned. this after the doj said it would enforce antitrust rules barring executives from serving as directors of competing companies. justice department officials say this is first in a broader review of potential illegal interlocking directorates. john fetterman for nominee

in pennsylvania released a note from his doctor saying he's recovering well from his stroke in may and no work restrictions and can work full duty in public office, end quote. republican opponent dr. mehmet oz accused fetterman of lying about his health and questioned whether the democrat can serve as a senator and in philadelphia, a nonprofit is giving away 2,000 pounds of surplus avocados to people in need volunteers are dressing up as the fruit for the occasion the giveaway started today and will last through thursday step up, get your avocado. back to you. >> thank you very much. ahead on "power lunch," is it time to venture out amid rising rates and growing volatility companies are pausing deal making. what does the vc industry look like and will funds dry up if and when a he recession kicks in we'll explore that and more after this

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. we want to get you caught up on the markets stocks, bonds, commodities and vc investor focused on climate solutions. first let's begin with bob

pisani stocks are sliding right now. >> hi. we like to believe that earnings matter and, indeed, they do, but right now, today, we're back being slaves to the macro environment and when the t2 and 10-year yields approach new highs we're slaves to that if you look at the risk on stuff, the classic ark innovation down almost 4%, metals an mining stocks down, here's something interesting, semiconductors are up. that's a risk on sector and that's because we actually had some very good earnings reports today, particularly one of the big semiconductor equipment companies asml the earnings, asml one of the bug movers on the s&p 500. netflix as well. that's a big move and a dutch company. their headquarters in the netherlands. procter & gamble better than expected, baker hughes so you get the idea, the earnings apocalypse, everyone was afraid of three months ago and two weeks ago is not

materializing, even though there's slow deterioration in earnings you can see the influence on airlines with united having an excellent report it's been holding up the airline sector through most of the american, delta, alaska up until a short while ago. oil was trending downward for the last week or so but trending up today and the energy stocks are having a nice bounce president biden announcing he was releasing the final 15 million barrels of oil but i think the market is looking forward to other events throughout there's going to be the e urgs ban on russian crude purchases, i believe that is december 5th that starts. there's definitely going to be some supply issues that are out there. contessa, back to you. >> thank you for that. let's get to the bond market yields hitting levels we haven't seen in a long time. to rick santelli for those numbers. hi, rick. >> as a matter of fact, we are looking at every maturity, 2, 3, 5, 7, 10, 20, 30s closing at new

cycle high yields. and today we had a 20-year auction. the yields 4.395 sounds pretty juicy, right it's the highest yield on the treasury curve there were crickets in line for investors who really didn't show up in aggressive moods i will give you a couple reasons why. four month bill auction today, we have a four month bill we brought it out in may of this year, yield 4.14 a 1-year t bill chart year to date see what yield is. close to 4.60% those are some of the reasons why so few investors are aggressi aggressively buying and hanging out in the t-bill auction. three months of 10-year is the recession yield curve spread to pay attention to let's look at what that's doing. a year to date chart you can see it's hovering above 10 and the flattest since covid

march 2020 and if that inverts that is one of the good signals even though we sometimes look at 2s versus 10s. now if we do go back to that 10-year, let's think about a short maturity a 2-year since cpi thursday. we finally traded above cpi thursday's 2-year high yield at 4.52 technically significant 10-year notes all-time low closes, half of 1%, the 4th of august 2020. look at the chart. it's truly unbelievable how fast we've gone and today as we've been saying all day the highest yield close back to july of 2008 finally remember that 2-year chart the dollar isn't the same. there's a cpi going back on the dollar chart we have yet to close above the cpi high and that is key 113.92, watch that for the dollar index back to you >> you talk we listen. thank you. oil closing for the day

higher after the president's comments on energy prices and. i pipi stevens has that >> the president announcing the release of 15 million barrels from the strategic petroleum reserve but these are not new barrels. it's part of the previously announced 180 million barrel release. biden saying the move is not politically motivated but comes a few weeks pfr the midterms and pointed the finger at energy executives saying oil prices have come down faster than gas prices and companies should use profits to reinvest in new production the american petroleum institute saying its geopolitical instability and faulty policy decisions have driven fuel prices higher. wti up 3% at 8543 and energy stocks jumping on the heals of that move, the only s&p group in the green. baker hughes is leading the gains. the oil field services company reported earnings this morning

beating eps revenue missed expectations still orders and cash flow improved and that is boosting shares eog also a mover following two positive calls morgan stanley upgraded the driller to overweight jefferies initiated with a buy rating. >> thank you for that. a major player in the industry is putting his money behind some clean energy startups and has investments in housing. diana olick is live from the breakthrough energy summit in seattle with the founding and managing partner of cosala ventures good to talk to you. >> thanks. i want to get to it. so much news i want to start with what rick santelli was talking about, bond yields, interest rates rising. how is that affecting the kind of investment you want to see in basically but clean energy and clean tech. >> fortunately investment cycles in clean energy are long term.

so short-term interest rates don't really affect investment into the category. there's a lot of investment because the world is going through an energy transition and a low carbon sustainability transition, so i don't think it's affecting the interest investmenting in private companies which is mostly our business, not so much the public market we do nothing in the public markets. the private markets mostly unaffected by the interest rate changes. >> we're hear with about 80 climate startups some of which you've invested in and the deal making going on here what kind of achievements have you seen in the two days because there have been concerns bill gates said it would be more competitive given the higher interest rate landscape? >> there's a lot of interest in clean technology, hence there's more investment interest and because of that, there's plane more startups flourishing.

one of the things about venture capital is most investments lose money, but more money is made than lost. so few things end up being very, very large and successful, think google and facebook and things like that, and the dotcom era when there was a dotcom bust, that could happen in this area too. the fundamental markets in clean technology are much larger we are investors in fusion if you solve the fusion energy problem it's a market larger than google's market you covered sustainable aviation fuels. that's a market that's humongous. a billion dollars wouldn't touch -- begin to touch the market so those are very large markets. the same way -- lots of electric

car batteries, markets that are trillion dollar markets and oil and energy and societal infrastructure market and that's why the interest hasn't come down just because interest rates have gone up in the short term because people are looking at the 10-year window. >> what about oil? how do you react to what's going on with the strategic petroleum reserve and how much money you're putting into clean energy >> to be honest, the economy, of course, always makes a difference and those oil prices affect the economy, but by and large, investment interest in clean technology is not tied to the price of oil because what we invest in today comes to maturity in five to ten years. nobody can predict the price of oil five to ten years from now so they take the view it's hard to account for the price of oil especially short-term movements in oil prices or interest rates. >> i want to put my real estate

hat on for a second and you're a big investor in not just clean building but real estate ventures, specifically open door given what's going on in the housing market, interest rates, mort gha mortgage rates hitting 7.22%, does the model still work if you don't have a competitive market. goldman sachs downgraded that stock to a sell? >> i take the long view. our buyer is the fundamentally good economic model and i think somebody will dominate it, but talking about a year from now, two years, three years from now. i think open door in the full position to dominate the high buyer market and create a valuable company short term, rapid changes in interest rates affect their business, but i don't think it makes that much of a difference over the longer haul. >> you're investing in 3d technology for home building, clean technology you think that's the future, building homes in 3d

>> we're building 3d panels with new materials. sustainable building is a major trend and i think more and more developers will look for sustainability in their buildings, lower carbon and lower operating carbon out of these buildings. that's a very important trend. i think it will be a dominant part of new construction in real estate that's an exciting new area and we are doing radically different things like 3d printing with new materials. we are printing with polymers, concrete printing i think is a bad idea only in that it has short-term economic benefits that are small, but they won't keep progressing to reducing the cost of building construction in half over ten years. >> okay. we certainly need more homes we have to wrap it up. it was a pleasure talking to you. thanks so much back to you guys. >> thank you very much thank you for joining us today

up next, carnival setting sail into the junk bond market, borrowing around $2 billion, but there's a catch investors ne kw about. we'll be right back and explain it all to you. if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs. so if you're on medicare, or soon to be, consider this.

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- yieldstreet presents: alternative investing matchinwith kal penn andption. 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. michael is back. and he's more dangerous. maybe the only way he can die... is if i die too. [ screaming ]

welcome back to "power lunch. are we finally starting to see a cruise ship coming carnival shares up 10% this month. slightly lower today after the company raises more money. seema moody now has more seema? >> tyler, carnival was successful in raising more debt. it set out for $1.5 billion but ended up raising over $2 billion in the junk bond offering but it comes at a price high yield of 10.7% and it's offering 12 cruise ships as collateral i spoke to a number of analysts. if carnival is not able to service its debt at the time of maturity, the ships would be sold and those bond holders would get paid first steven carter at credit flow research calls the offering innovative and unique for a company like carnival sitting on a lot of assets and with only five deals priced in the junk bond market this month carnival

is easily the biggest deal in october and follows royal caribbean $2 billion raise and tipco's $4 billion in september. typically when carnival or any major company raises more debt the stock plunges, but this time we did see shares spike 11% yesterday. giving back some of the gains today. but stifel analyst writing that this debt raise pretty much removes a risk of another equity raise and that, they say, is very important. >> outlook for travel, united out today saying the outlook is strong in their category i assume that bodes well for the cruise lines >> it does that conversation tishgs her, with ceo and phil lebeau, talking about how there's appetite to travel this fall and winter, certainly positive for the broader sector where the cruise lines get hit is on pricing. united said ticket fares are going up and with cruise lines tending to appeal to a customer

that is cost cepstive is going to take aim, especially for that family of five from chicago. they have to spend $1,000 per person to get down to miami and spend an additional amount of money to get on a cruise that's going to be tough to swallow. what the cruise lines are trying to do is bring more ships to the customer those of us in new york if you drive down west side highway you will see there are about one to two cruise ships docking in new york city per week that's something they hope that strategy will work over time. >> but this time of year you have to sit on the cruise ship for three days before you get to warm weather, like get me there in three hours. >> it's about less than 48 hours to get down to the caribbean. >> all right. >> i hear you. unlimited drinks come on, contessa. >> on that hand you're right you sold me. thank you. generac the worst performer in the s&p quarterly results way below system we'll trade that name and other y earnings movers in the three

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lunch. united airlines and intuitive surgical both trading higher after topping estimates, but

generac shedding more than 20% of its value after the company cut its full year outlook and said it doesn't have enough workers to install those generators that it does sell let's trade these names with the ceo of new street advisers all right, let's talk about united airlines first. do you like it would you fly it >> i would fly it. so united airlines, the big measure was it's not strong demand if you look at the tsa check point numbers, we're not up to 2019 numbers, but we're creeping back up. in the sector, demand is still there. demand stays high. they had a forecast and their outlook was strong i would be buy or at least holding that airlines here, contessa >> let's move on to intuitive surgical what do you think of that one? >> it's interesting. obviously the earnings was really strong and i think three out of last four quarters, they beat on earnings on the bottom

and top line the big thing investors want to watch for in this stock is the growth in procedures they're not above 2029 levels, but they are creeping. about 17, 18%. they just recently forecasted. so i like the stock. strong balance sheet doing a great job of managing expenses on the hospital side so i like the stock, tyler >> and the final name is generac. what do you think? should investors power through the news >> they should potentially power it down on the news because they mentioned was they said the end customer still has it, but their channel partners were not seeing the demand they need, which obviously are getting their cues from the end customer. so this is a tough quarter they had a large cut obviously as well dropped off. so not much looks good on the news front here, but the flip side for investors looking for a highly discounted stock that's been trading in a negative light

recently if they're still powering through the next couple of kwquarters, there could be opportunity. >> do the people who want generators already have them or is the issue they can't get them installed fast enough? >> there was an issue where they could not get installed fast enough they don't have enough workers to meet supply that's probably going to be the issue going forward if we have a tig tighter labor supply in the future that would be another case for more downside if they're not meeting the demand they have there. but the full year guidance was down across the board. i think this company's trying to work through some issues on the demand side as well as having higher inventory levels. >> generac down almost 25% the stock really taking it on the chin so thank you so much for joining us appreciate your perspective. >> and up next, inside travelers

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shares of travelers rising 3% today despite the catastrophe losses from hurricane ian. right now insured damage from ian is estimated to be as high

as $70 billion those are insured losses florida's property insurance market is in meltdown. insurers are fleeing the state or folding or limiting exposure and he says florida's broken model skyrocketing fraud, litigation, regulations that undermine free market principles, translation it's hard to make money in florida. he says those factors are impactful as weather in this challenge to insurers operating in the state and warns other states are now heading for a similar insurance ma rasz. thinking particularly of california with its wildfire risk regulators say they have to let them price accurately what the risk is and in florida, that environment means that although florida accounts for 9% of the property claims nationwide, it's almost 80% of the litigation >> no kidding. >> yes >> a lot of the companies pulled out of florida after andrew.

i assume after others. >> and katrina and maria and all of those, but the problem is that those that have remained. for instance, travelers has exposure in auto insurance they find it very difficult there to navigate the market >> fantastic thank you. >> and "closing bell" starts right now. stocks are pulling back in a choppy session again here. weak data and higher yields. energy is the only sector now in the green. this is make or break hour for your money welcome, everyone, to closing bole take a look at where we stand right now in the market we are down on the dow about 200 points we were higher at one point in the day, but looks like we've lost most of the steam there s&p 500 down a full percent. real estate, financials, healthcare