quote, reluctant to raise their risk exposure after that cpi number this group had been strong buyers heading into the print. retail has not thrown in the towel completely they haven't seen what they call full capitulation. they expect some strong retail buying and bids in the next couple of weeks. this cohort moving into money market funds, still buying tesla, netflix and roblox this week back to you. >> kate, thank you very much. folks, they're playing our song morgan, you hear that. >> happy friday. >> happy friday. thanks for watching. "closing bell" right now stocks are jumping to end a solid week for the bulls as fed commentary stays firmly in focus. this is the make or break hour for your money welcome to "closing bell." i'm mike santoli in for sara eisen. here are where things stand in the market started out much more hesitantly but we have rallied throughout

the day. dow off a similar percentage nasdaq slightly underperforming as is the russell 2000 as bond yields come in a bit check out the stock chart of the day. snap after revenue missed estimates on advertising headwinds. we'll talk more about that and the implications for meta and alphabet and more in just a bit. also ahead on the show, former ford ceo mark fields will join us to talk about gm's reveal of the new electric pickup and where that company stands in the ev race. let's begin with the market. the major averages on pace to end the week firmly in the green. treasury yields having a big week as well earlier in the session, the ten-year yield touched its highest level in just about 15 years. but a new report from "the wall street journal" calmed the bond market the story indicating fed officials are likely to raise rates by 0.75 of a point in the november meeting before debating if smaller hikes are warranted

starting in december this meshes with comments from san francisco fed president mary daly that the fed saying a slower pace of hikes should be considered jeff, it's great to have you with so much fast-moving action and expectations in the bond market here. did today's, i guess, the hints that the fed is looking, perhaps, for an opportunity to slow things down change the picture much at all? it seems like it's in sync with what they told us in september but maybe the market had moved ahead of it. >> i don't think there's anything new there we were discussing this across the desk today and this is about inflation buying this is a week we didn't get new inflation data but next week we do again every week is something we're getting here the comments are consistent with what the fed has been telling us they're telling us that they're

going to hike, they're following what the market has priced in and the market has another 175 basis points priced into the next meeting doesn't seem like they're slowing down much. all those being conveyed there, we're probably not going to do a bunch more 75 basis points hikes. we've been advocates the fed should slow down but they have to see the inflation data start to cool in some capacity in order to do so i think the reversal today doesn't make a lot of sense, seeinging the front end rally, the back end sell off. again, this is all about inflation at this point. and really, i think, you know, until we see some cooling of that data, you're going to see just these whipsaw behaviors within the treasury market. >> well, if the pullback in yields today, the reversal, as you say, doesn'tmake a tremendous amount of sense it was set up by a pretty dramatic upside move in yields,

right? it looked like it was almost gaining downside momentum in terms of bond prices it seemed like it was getting a little bit crashy how fast yields had moved i wonder if you think the levels we're at right now make sense based on what we should be expecting and what the market has priced in from the fed. >> no. you nailed it, mike. there's just been horrible momentum within the treasury market i would even call it carnage if you look at what's happened over the last three months in the treasury market, i mean, we've repriced from fed expectations what the hiking path will be at the end of it, by another 175 basis points. all the hikes i'm talking about were not even priced into the market three months ago. so what we see in the treasury market is that it's really starting to offer a fair amount of value for those who want to offset risk in their portfolio i know it's not working today. we have a nice stock market rally because the market is really hinging -- the risk assets are hinging on a fed

pivot. there is no signal yet either in the data or the fed communication that they're, indeed, going to pivot i think they continue to dlir here i think the treasury market is fairly priced today. i think it offers for a lot of things you own in other parts of your portfolio if we have an overengineered fed, we have recession risk, it allows you to really offset treasuries don't forget the other darling of the cousin of the stock market are the credit markets. what we're seeing in credit today, i mean, you can buy investment grade bonds that yield 8, 9 plus percent today. it makes sense for a lot of investors to think about balancing a lot of these risks in their portfolio you talk about 15-year high in treasuries, what we're seeing in credit is stuff we haven't seen since the depths of the pandemic, which wasn't really tradeable. also going back to 2009 and 2010 from our perspective, thinking

about the treasury market, it is something you should be owning you probably have a little bit more upside pressure in yields we're getting close to the end, i think, of this rate rise regime it's probably a little early gits going to be very data dependent. we have gdp next week, inflation data next week it's going to be driven by the fed and the following week we get the fed. there's a lot on the calendar. everything is still running through the bond market. it's starting to get to the point where, as you mentioned, this negative momentum, this negative breadth is looking like an opportunity to start building position and that's what we've been doing. >> clearly, inflation has to moderate to some degree for the fed to consider slowing down at all. clearly it's predicated on that. as you say, a bit of a cushion for value being created in fixed income do you think the fed has potentially gone too far in terms of what the economy can handle going into next year because that's another bull case

for treasuries here. obviously, we worry about a recession kicking in >> yeah, no, absolutely. i think your treasuries are a great hedge to that recession risk or the deflationary side of shooting to the other side when you start to think about where the fed's been, we know monetary policy reports in a lag. jay powell admits it this is a good thing when they say, maybe we need to take a pause at some point. the market has priced this in. it's been carnage. look at the bond market is down almost as much as the dow is on a year-to-date basis s&p is still a bit worse what you found is this repricing to the market is because the inflation data has not subsided. so, the story this morning, we were discussing. it's very balanced, actually it's not saying they're going to ease it's just saying, look, they haven't been -- from the standpoint of thinking what you should do to interpret it is you

just have to be patient. with bond investing, you don't trade it day to day. you start building positions looking forward, let's go out 12, 24 months. could there be a recession absolutely that's what the treasuries do. if we don't get it or we get a mild one or it's very narrowly focused in certain parts of the market, credit offers a significant value. so, that's why we're so excited about the bond market. look, looking in the rearview mirror, it's been ugly looking forward, it's the best opportunity we've seen over 12 years. >> yeah, really dramatic repricing in just a few months across the bond market appreciate your thoughts today thank you. >> thanks, mike, for having me well, after the break, would you buy snap after another rough quarter? we'll get the bull case from an analyst who's maintaining his outperform rating on the stock and we'll also talk about the read-through for names like meta and alphabet you're watching "closing bell" on cnbc.

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andrew, i guess the question is, this stock is down 90% from its highs. i know the market doesn't care where a stock has been at this point the guidance seems to suggest things are going to worsen throughout the quarter. is this a broken business model or is is there something else going on that snap isn't telling us about >> at the end of the day, i think snap has exceptional reach among younger users. so, as linear tv continues to decay, i think it has a very strategic position in a place within advertisers' budgets as they have to build brands. they reach 19 to 34-year-olds across 90 countries. i think that continues. >> that's the argument for this has a place in the industry. the product has uptake why has the company been unsuccessful to monetize in this environment to the degree it expected to? >> looking back, i think tiktok

has been a big influence on just ability to advocate budgets. if you're a retailer at this point, there's no tiktok equivalent way to buy on snap chath. i think snap has been the victim of budgets moving over to tiktok what mays us a little more positive is if you look at third-party data, it looks like tiktok engagement is starting to slow as of this summer the numbers we have seen is tiktok was growing 50% if you look at last month, it's slowed to high single digits hopefully that cannibalization will start to slow. >> are there things going on in a macro basis you also think is at play with snap? or how are you thinking about the position the company finds itself in right here >> look, i would agree they're strong in terms of their audience position with a younger

cohort but i think that this equity is telling you, screaming at you that it is outside volatility in a world that's moving towards sell recession and i think what is surprising is that the stock is reacting this strongly to what everyone could have foresaw, which is a soft outlook for the fourth quarter on macro, not tiktok, but macro was the story here i think in this type of environment where things are going to be more difficult as the fed steps on the brakes, this is probably not the first place you want to sit for comfort over the next several weeks. i would go up the value chain and internet media i think there is a secular move from traditional towards internet but i think you can get better, safer, sleep at night with exposure through alphabet, which also doesn't suffer from the privacy hindrances that have been such a problem for snap and for meta plus you have some other call

options. i would go in another direction. bigger, higher quality alphabet managing. along those lines, meta has already kind of had its collapse in terms of valuation at this point. is that a good option or are they sort of similarly challenged >> well, it's interesting. so, i think that what snap is telling us today is that even though we've seen this ad recession coming, it's not fully priced in. so, i think as numbers reset lower, you know, there's risks across the group i think for meta, they have in particular a lot of exposure to this direct response form factor that was troubling, i think, in terms of volatility for snap and i think the other issues you have with meta is audience erosion. the loss of people looking at facebook makes snap stronger than meta at this point because

you have a better audience position with media stocks, internet media, if you have audience headwinds it's hard to call up valuation. i think people shoot first and ask questions later when they see that happening >> and aggregate valuation for snap is down under $13 billion we'll see if anything gets catalyzed any time soon. appreciate the time today. thanks a lot >> thank you let's check on the markets the dow is up now 700 points s&p 500 making a new high for the day, up 2.2% it is an options expiration. nasdaq 100 also up more than 2% and the russell 2000 participating as well. the high for the week on the s&p is above 3760. still to come, we'll talk about another earnings decline american express falling today despite beating on the top and bottom lines and analysts will weigh in on what is pressuring that stock.

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welcome back to this rally day on wall street the broad index is extending their gains. you see the s&p sector heat map, all sectors are up as of right now with materials and energy leading the way. those are inflation plays, interesting enough, and cyclicals. consumer discretionary also outperforming as well as technology lagging a bit. real estate, the yield sector as well as defensive consumer staples. check out today's stealth mover. hawaiian holdings, the parent company of hawaiian airlines that stock flying high today after the company issued warrants to amazon to buy up to 15% of outstanding shares. that's part of an agreement whereby hawaiian will fly airbus

cargo planes for amazon starting 2023 from planes to cars, general motors getting a pop after taking another step forward in the ev race. revealing its electric pickup with a big price tag we'll tell you about the unveil. and we'll talk to former ford ceo mark fields about the company's best position to cash in on the electric vehicle revolution with my hectic life you'd think retirement would be the last thing on my mind. hey mom, can i go play video games? sure, after homework. thankfully, voya provides comprehensive solutions and shows me how to get the most out

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welcome back to "closing bell." shares of gm moving higher along with a number of other automakers today the company just unveiling its electric gmc sierra pickup truck with a hefty price tag phil lebeau has the story. hey, phil. >> let's take a look at the gmc sierra evdenali. the first edition, there's a number that will come in over $100,000 they hope to have the mass market editions when they start production closer to $50,000 all of this comes at a time when a number of automakers have continually raised the price of their evs because of the impact of higher commodity costs. the president of gm says that's not what they're planning to do here >> i don't think jacking prices in a time when, you know, people may not be able to afford things is always the best move.

we've got -- our platform is a ground-up platform which allows scale and cost control, which our competitors do not have. >> he didn't say the name of those competitors. let's be clear he was talking about ford in terms of raising prices and his belief they're better positioned than ford and others when it comes to cost control. take a look at the u.s. ev market share gm is not on this list because it's only 3.9% but they still maintain they will have 1 million evs on the road in north america by 2025. no doubt, the gmc sierra ev denali is one of those models they're counting on. gm and ford earnings next week. >> we'll have an eye on that two years and two months until 2025 thank you. for more on what this means for the broader ev market, let's bring in former ford ceo and cnbc contributor, mark fields. as phil set it up, pretty narrow

up-market by gmc with the electric pickup truck. is it enough to move the needle? what is this relative to what ford has done with the f-150 >> overall with gm they're introducing high versions right now to garper attention to what they're doing with their lineup. it's -- as phil said, it's a limited edition model. most of the oems are doing that right now. when you get to mass adoption, $50,000 to $60,000 pickup trucks you see two divergent strategies from ford and gm, particularly from a product standpoint. ford took the lightning, the existing platform, made some upgrades to it, electrified it and that allowed them to get to the market first there's first mover advantage in evs this day i think that's working for them. gm took a different approach they have a ground-up platform

tailored to their battery pack and has some performance advantages but it did delay them into the market. the first silverado ev is not coming to the market until midyear next year. we'll see how that plays out and how customers prefer. >> the various makers will be producing and will be on the road and customers will want by 2025, 2030, is it realistic at the pace we're moving at this point, both in production and infrastructure >> well, it's a bit -- as you mentioned, it's a bit of a parlor game right now, who can up who with their press releases on how many vehicles they intend to sell. ultimately it comes down to what you actually do. that's how you earn a reputation and when you look at the capacity that's been announced, clearly the automakers are putting in the capacity to build the evs. they're working with the battery companies to put in battery

capacity, but you have a couple of other elements here, which are really important, like the charging infrastructure has to go up in tandem with the automaker's sales objectives at the end of the day, it's about convenience for the consumer that has to be paired with significant improvements in the electrical grid. you know, a state like california that says by 2035 they want 100% evs they have a lot of work to do there because they're already experiencing rolling blackouts today. imagine really by 2030 when they say over two-thirds of the vehicle in the state must be evs, that's going to be a challenge. >> tesla has been operating on a premise of basically unlimited demand they feel for their cars as many as they can produce. clearly the other makers don't have that confidence they also, tesla, is vertically integrated, selling through their own stores and online. are legacy automakers in a

position to be challenged? do the dealership networks act as an impediment >> tesla, obviously, mike, is a leader in this space they're going to continue to be the brand leader as the market moves to electrification i think they have a very good position in the marketplace, but do not underestimate the traditional automakers it's interesting every new ev maker struggles with building cars and doing it with quality the established automakers have done that for a very long time they're coming out with very compelling products, but clearly tesla's market share over the next, you know, five years or so is going to go down just for the fact that the fords and the gms and kias will be introducing new models i think it's going to be a very competitive market going forward and give a lot of credit to the traditional oems with the products they're bring out they're very good. >> all right we will certainly be tracking

it mark, appreciate your perspective on it. mark fields. >> thanks. here's where we stand in the markets. the dow is up 770 at this point. s&p 500 up nearly 2.5% just about to those early week highs. nasdaq composite up just about as much. russell 2000 involved as well. stocks are on the upswing. but there's another red flag for the sluggish ipo market. we'll bring you up to speed on the latest company to reportedly pull its offering. that's next. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪

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instacart reportedly planning to pull leslie picker with the story. >> or at least postpone it indefinitely market conditions are the culprit here it's weird to juxtapose that with with what the market is doing today. instacart seemed to have be one of the stalwart issuers in the pipeline having pulled together its s1 filings earlier, early summer, which still remain confidential with the s.e.c. however, the company slashed its internal valuation three times this year alone. most recently down to $13 billion, one-third the price tag it received in a founding round last year. they say the building remains

focused on building for the long term and we are excited about the opportunity ahead. i guess the question is, when ahead means an ipo mike >> exactly we'll have to wait i think given this year and how it's gone for the market, market conditions is a legitimate excuse for instacart at this point. leslie, thank you very much. after the break, why american express is sinking despite an earnings beat and should you consider buying the dip? that story in the final minutes of this wild week.

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we are in the closing zone charlie is here to break down crucial moments of the trading day. plus pippa stooevens and kristia hooper on the market outlook we are in the home stretch of a volatile but now winning week. the s&p 500 up 2.5% on the day hopes the fed may ease the pace of rate hikes is adding to today's optimism charlie, you know, the market is kind of absorbed a fair bit, hasn't it, in recent weeks, just a huge move in yields. a lot of hawkish fed speak until today. the s&p 500 has been bumping above the recent lows. do you think that means that we're sort of in the clear for a bit or we have other shoes to drop >> in the clear is a strong statement. i certainly wouldn't say that. i would say there was an awful lot of negativity dumped into this market a week ago or three weeks ago. we monitor surveys of sentiment pretty closely and a year ago about 45% of add

advisers were bullish and 20% were bearish that's now flipped to 45% being bearish and only 20% being bullish. the market was clearly ready to absorb some bad news in particular the market was very worried about earnings. there was a lot of talk about armageddon and earnings. you'll never have 100% positive surprises but in general earnings have come in much better than feared >> we're getting roughly so far 70% beat rate. that's roughliy in the historica range that companies usually beat do you think it's a matter of companies actually have relatively strong outlooks or is it we lowered the bar so much? i guess the big question is, even if the fed starts to slow down what it's doing in tightening is the economy in any condition to handle what's already been thrown at it? >> see, i think the economy is actually in pretty good shape if it were not for the fed holding a knife to its throat. i feel like everything we've heard from banks and portfolio

companies and credit card companies is that the consumer is in very good shape, very good balance sheets the consumer feels good about his or her job, about their prospect to get another job. it's very hard to go into a recession when you have a strong consumer who -- with a strong labor market i think if we can get past the fed, which is trying -- as you and i talked about a lot, is trying to make up for its past mistakes on inflation, if we can get past that, i think this economy is in good shape not to mention that china is a little bit of a coiled spring. >> there you go. that's an element that has not been part of the bullish story for sure what about inflation, though a lot of this is premised on the idea that inflation starts to cooperate a little bit and moderate or come down even relatively quickly is that part of the plan >> yeah. i don't think you have many guests that have been more bearish about inflation than i have a couple years back, but the good news is, this was caused by the money supply

exploding up higher by 40%, which was caused by record deficits of more than $3 trillion the fed then monetized the debt that was issued and brought in over $3 trillion that is coming to an end the good news is they stopped expanding the money supply, they stopped with quantitative easing i think it's going to take a while. there's always a lag inflation will come down we've seen peak inflation. it won't be low. next year it will be 5 to 6 but that's better than 8 and 9%. >> for sure. we'll see if we get there. let's get another check on snap. this stock certainly sitting out the rally, losing around a third of its market cap after a big revenue miss worries over weaker ad demand taking down other social stocks. meta, pinterest selling off. julia joins us what is the biggest concern for snap what seems to be driving this

latest round of negativity >> what's so interesting here is the revenue miss for this quarter was very slight. the big miss was for the fourth quarter and the outlook for how the fourth quarter is going to end up the first three weeks the quarter was relatively strong. snap said they saw 9% revenue growth but they anticipate the overall quarter will be flat with a year ago period that's because they think the back half of the quarter is going to see some very negative trends in terms of this overall contraction in the ad space. what's happening here in the social space as a whole is that you see all these players competing for a smaller pie. they're all looking to get a bigger piece of the smaller pie. the question going into meta earnings is wloo they are better positioned to navigate some of those apple operating system changes that made it harder to target ads and measure the impact of that targeting mike, i'm going to be curious to see whether we see a similar contraction, a similar slowdown in meta and what kind of guidance, if any, meta gives

about q4 and also maybe if meta is going to talk about hunkering down and focusing on the ad side of the business, maybe investing a little less in the metaverse. >> it would seem they have plenty of room to do that if they choose to when it comes to snap, they talked about daily active users up, so the number of people on the platform not going down. it's a different issue than with some others. is it just a matter of the time engaged or simply about, you know, tiktok kind of grabbing share from advertisers >> yeah, you're absolutely right. user growth actually accelerated. they added more users, daily active users in the third quarter than the second quarter. so, people are using the service but the time spent, especially time spent watching videos in the u.s., that's the most valuable time in terms of advertising, that did decline in the quarter. maybe snap is more useful for that core messaging capability and less so for the kind of tiktok consumption of videos

with ads in there. i wish we got access to the stats about how much revenue tiktok is bringing in, mike, because i would be curious to see it i think we will hear about the tiktok effect for meta as well we did see it easing into content viewing time on snap. >> absolutely. tiktok's business is this huge bit of dark matter in the industry we have no good window into how well it's doing. julia, thank you very much energy, the top sec ter this week, sclumberger one of the strongest, on the back of third quarter, including lumber. the ceo saying the company saw margin expansion and the quarter was led by the international segment. let's bring in pippa stevens for more color on schlumberger t this. >> those shares are popping. some were saying was really

elevated expectations. as jpmorgan summarized it, they, quote, cleared the bar with a significant quality beat and they also raised their full year guidance, posting the highest quarterly profit since 2015. and this really all came down to that international division where they saw a lot of growth and the company also expects that to be a major growth driver looking forward, especially in the middle east. the ceo said that that region has seen the largest ever investment cycle and schlumberger does predict it will be a beneficiary of that increased spending you know, for a while there, we saw a lot more interest in the upstream players given how high oil -- how high wti and brent were wti around 85 bucks a barrel, you have to wonder if we'll continue to see momentum behind the services name. >> absolutely. got to see how those migrate, if

at all thank you. >> there has been a disconnect, oil prices flat, well off the highs. the stocks themselves have continued to do well and open up a lead here. what's your read on that in terms of why equity investors are still excited about this area >> one thing everybody has to remember is oil is priced in dollars. if i am a saudi prince, i am getting a lot more of my local currency, even if the price of oil stays constant, because the dollars that i'm getting have appreciated so much in value we would have had a much bigger move up in oil had it not been for the dollar strength. i think, look, the oil companies can make a lot of money at $84 oil in an inflationary environment, which you and i think we're probably going to have for the next year and a half, i think energy names with extremely low multiples. my favorite, a a is trading five times

earnings i think they will do particularly well, and if we get another unfortunate continuation of the war in russia/ukraine china coming out of lockdown would be very positive for oil markets. >> for sure. energy one of the rare places you can find any earnings momentum in this market at the moment let's get to the broader market as we approach the close joining us is kristina hooper of invesco. we do have the dow still up about 750 points on pace for a winning week we've had a lot of agitation in the markets based on what's been going on globally and in a macro basis with the fed, with the uk bond market earthquake, even today, japanese yen was at a 30-year high or so bank of japan intervened, actually tried to -- 30-year low. tried to strengthen against the dollar how does that filter into what an investor should be thinking about in terms of where markets

finish out the year? >> well, mike, it's harder than ever, but my job is to remind investors to think about the longer term. while we're seeing significant volatility and we could see some earnings misses, after all the, only about 20% of the s&p 500 companies have reported thus far, what we need to think about if we have a long-time horizon is that these represent opportunities. and it's hard to do, but, in fact, there can be even greater opportunities when we see the kind of frightening headlines and extreme volatility that we've seen in both the stock market and the bond market >> that's certainly true, i suppose, on a longer term basis, you know, the risk comes out of the market to a degree as prices and valuations come down, kristina, although i do wonder if enough has been done, just given our starting point and the fact that both stocks and bonds have gone down so much in sync how does that leave an investor to try to decide if it's yet safe to try and increase

exposures? >> well, it is very, very hard for humans to pinpoint exactly when to get it we'll never know the optimal time until it's in our rearview mirror we can start to dollar cost average in, recognizing that certainly valuations are more attractive, especially in some parts of the market than others. but that in general, this is a bettert than it was last year. we have to recognize that the fed is still going to be a key driver going forward we don't know exactly what the fed is going to do because we don't know what the data is going to tell the fed to do. but having said that, we can start to move in, start to acquire greater exposure to areas like equities and fixed income and, perhaps, enjoy some of the things that have happened this year, like higher yields for fixed income it's not easy to do, but for the longer term, it can be, you know, pay off in a very, very impressive way

>> charlie, as you look around, as a value oriented investor, have any particular types of stocks or stocks from any particular industry started to surface more than others as you're looking for what's been kind of unduly cheapened by this move down in the markets >> absolutely. anything economically sensitive. that's a quick answer, an obvious answer but a true answer particularly anything to do with housing has gotten extremely cheap. we're finding names like mohawk carpeting and floors trading seven times earnings power trains for cars, trading at seven times earnings. right now people are petrified of a recession we're going to get to the other side of it when we do, these are companies that will go back to noormal earnings and right now they are economically sensitive and very cheap. >> absolutely do kristina, in terms of whether

you should be on the more defensive side of things as you, perhaps, weigh back into equities or look to buy or essentially look at the most beaten down more cyclical names like charlie was saying, what makes more sense here? >> if you're going to be tactical, i think you want to be more defensive in the shorter term there are some great opportunities that will present themselves, especially in the tech space, which is arguably a more defensive part of the stock market these days. of course, we're going to see the economy start to recover and the stock market is likely to discount that in advance investors should be open to also starting to add to economically cyclical names in coming months. but the name of the game right now is more defensive. >> got you appreciate your time today kristina hooper. american express is a big name slumping today. quarterly earnings and revenue beating estimates, but the future looking a bit more uncertain, at least in wall street's mind. the company preparing for a

potentially higher rate of defaults, loan loss provisions coming in greater than analyst expectations charlie, you focus a fair bit on financials of all sort they seem to be stuck in this place of business seems okay, our customers seem like they're in decent shape, but we're worried, perhaps, or at least the market's worried about where we go in a recession how does amex fit into that picture? >> amex is a little different, i would argue, than some of the names i own. goldman sachs has been around 10, 11 times earnings. american express was at 21 pe a year ago i would say american express was that classic great company, not a great stock a year ago there were good expectations for the company. they are one of these companies that benefits from inflation when the prices go up, they get paid a percentage of transactions so, if there's 10% inflation and everything holds constant, their revenue will naturally grow by 10%. i think there were some high

expectations built in. and the quart over quarter, her customer numbers weren't great they did well versus a year ago but not so great versus a quarter ago. so people are worried their business is slow >> yeah, for sure. and just when it comes to, i guess, the broader financial area, you mentioned goldman sachs. again, it seems as if people are wary committing to these stocks because it feels as if there's obviously heightened recession risks out there and you don't necessarily want to be buying before we get to the valley. >> absolutely. but what is the best adage for investing and it's hard for us to be short-term investors, but the one thing you want to do is be greedy when others are fearful and fearful when others are greedy right now people are fearful they fear a recession is coming. and you can see it in goldman sachs stock prices it changes between 0.75 and two

times book right now it's about one times book, which is a clear indication that people are fearful. that is the time to own a name like goldman sachs. >> we started talking this hour about how just this little hint, perhaps, from fed officials that they're looking to ease off the pace here, gave a little bit of relief, and kind of released the market from its worst fears, but are we going to get into a situation where risk assets can rally themselves into another splash of cold water from the fed that does not want financial conditions to ease much? >> from your lips to god's ears. that's what we're hoping will happen and i think it can absolutely happen. if was not for the fed, if the fed was not telling everybody it's going to try to beat inflation by causing a recession, as i said at the beginning of your show, i think this economy is in fundamentally very good shape. so, if they start signaling, which they did a little bit today, that the end of rate

hikes might be in sight, then i think this economy can do very well we still have a lot of pent-up demand we have a lot of people that would like to buy cars we're seeing it in the numbers, people want to go on vacations, go to restaurants, unemployment is low, wages are strong, balance sheets are strong. i think we are poised to have a really good economy if the fed would get out of the way. >> i guess the other side of that, though, is inventories are high and we binged on a lot of stuff over the pandemic and we have to normalize on that front. you mentioned housing is struggling right now >> that is -- i'm glad you brought that up. that is the one thing -- if you're going to say, what is the major risk, i do think we had a little bit of a housing bubble we had prices on houses go up way too much as mortgages were so low that is going to take a while to even itself out. new home starts, though, never got crazy. we didn't build too many homes if anything, inventory levels have stayed pretty low for homes so, yes, the price of homes is

going to come down a little bit. but i think there's household formation going on i think we're going to have a decent housing numbers in terms of starts, but i am willing to acknowledge there was a little bit of a bubble in the housing market. >> we'll see if we get some relief on rates at some point. maybe they can stop going up could help that story. charlie, great to talk to you. thanks for the time today. as we head one minute left to go into the close, we are on pace for better than 2% gains across the board all the major averages here. s&p 500 above 3750 there's the breadth numbers on the new york stock exchange, about 80%. upside volume. take a look at the u.s. dollar index. a soaring dollar has been a big headwind for equities all year 1% drop in the u.s. dollar index. pretty significant bank of japan intervening to try to strengthen the yen against the dollar that has worked to some degree cdl, volatility index, the vix,

not giving up much considering it's a friday and the s&p is up 2% shows we are still on edge, still uneasy right around 30. perhaps that will be the case as we head into the end of the month, another big earnings meeting, the fed meeting s&p 500 up 2.4%. that's going to do it for "closing bell. let's send it into "overtime" with scott wapner. >> thank you i'm scott wapner on this friday. you just heard the bell. we are just getting started from post 9 at the new york stock exchange i'll speak to ed yardeni about next week's make or break earnings in big tech, as some of those names have sputtered recently will the biggest stocks deliver when it's needed the most? we will find out we'll ask ed that question we begin with our talk of the tape, today's fed-fueled rally, that allowed the fed to post its first