might be an indication that they have momentum building in terms of customers. >> very good i would challenge duopoly. i've been going to wisconsin and been on these 'em brieres as you're ducking to get on the plane. phil lebeau, tomorrow morning, david calhoun, virginia tech hokeys go hokies. that does it for us on "the exchange." i'll join contessa brewer on "power lunch wash" which starts >> on that auspicious note, welcome to "power lunch. i'm scontessa brewer. goldman sachs president and ceo john wall drin joins us. we'll talk about deal making and the big reorganization big tech earnings on deck.

margin contraction in focus. not stopping a fund manager from going ahead of their results we'll talk to them in just minutes. brian -- >> contessa, thank you very much those are individual names let's talk about the macro markets. they're looking good stocks overall rising for a third day. the dow, s&p and nasdaq, nasdaq up 1.7%. the dow on pace -- i know a lot of people don't watch the dow, but the dow is on pace for its best month since november of 2020 basically two years. here is what else is moving this afternoon. xerox shares falling after the company cut its full-year revenue guidance they blamed inflation. they blame supply chain constraints. by the way, weber is up 30% after its biggest shareholder offered to buy all the outstanding shares this is weber, the grill maker

twitter shares moving higher in the past 20 minutes or so. david faber reporting equity investors and musk's deal for twitter have gotten the paperwork. the deal will close on friday. twitter stock up again today >> brian, we're about two hours away from the biggest earnings reports of the biggest week of earnings season. microsoft and alphabet are out after the bell followed by meta tomorrow, apple and amazon thursday these companies facing some of their biggest challenges yet, a slowing economy, punctuated by reports of job cuts here and slowdowns in digital add demand. according to refinitiv, earnings growth estimates for the just-completed quarter have come down substantially for meta, alphabet and amazon. all of these stocks have been under heavy pressure ranging from meta down 60% this year, apple down 15% the portfolio manager from

janice henderson, his top ten holdings include all these tech giants denny, good to see you today first, let's start with microsoft and alphabet reporting after the bell what do you expect to hear >> thanks for having me. really appreciate it as we think about microsoft, one of the reason we've owned the stock is the resiliency of the business model some of the reasons you've seen alphabet, meta and amazon come under pressure is both the demand environment for digital ads as well as general backdrop for consumer spending. microsoft, while it has consumer exposure in pcs and that's really soft in gaming, the predominant area of profit growth for the company has been from azure, its cloud platform, as well as business and pro ductivity apps with office and

everything that layers around it the resilience of the earnings model is probably strongest, and the range of outcomes around what that earnings growth rate looks like at microsoft narrower than other big tech platforms that are facing more acute headwinds, both because of potential macro softening and a softer ad backdrop as well as, let's not forget, many of these companies are feeling the effects of privilege see headwinds, particularly meta and to a less ser extent alphabet with its youtube platform. search has been a little more immune amazon has held up a little better because of first party ards so they're not as affected by privacy changes, but they're still digesting all the investments they made in the latter part of last year as they try to scale profitability in the retail business through their logistics and fulfillment investments. >> let me ask, denny, your global tech fund is off 39% this

year so why are you so optimistic that tech is going to see a turn-around? >> it's actually -- i think the way to answer that question, i'm very bullish on tech over the multiyear. yes, this year has been a tough year because we've had two particularly pronounced issues that have hit the tech sector. one is rising rates hit growth stocks if you look through what have been some of the best growth names across technology over the last decade, those have come under pressure because multiples tend to be higher. when interest rates go up, multiples come in. nonetheless, the secular growth prospects across software and cloud and parts of semis are still quite strong and are going to grow multiples of gdp over the next decade and continue to take share of not only revenue for gdp, but also profits. and then secondarily, we've had the sick lar concerns.

so you've seen the majority of the sick lar growth assets like semiconductor, semiconductor capital equipment have come in under pressure because of prospects for slower economic growth over the next year. the reality is we're now trading at multiples we haven't seen in quite some time and the stock is trading at a discount on the s&p. any time you have leaned into the stocks over many, many years, that's generally been fairly attractive opportunity with a multiyear bias in place it's been the perfect storm for tech i'll still highlight if we go back to the last ten years and look at percentage of gdp that has shifted towards technology and technology-like companies, that should continue unabated over the next decade and that's why we continue to be bullish. >> if you see this big headwind coming from the ways that the digital ad ecosystem has changed, is that something that

these tech companies just adapt to, denny? or is it something that continues to present challenges if and until they do >> yeah, absolutely, it presents challenges i know you mentioned something earlier that we owned all these -- we don't own meta, just to be cleared. they've been the most impacted you've seen a compression in return on investment spend for ads clearly as you have more limited targeting, and then the other impact to these companies is they just have to spend a lot more in cap, capx to try to drive ad roi over time that's why we tend to be a little less optimistic about the digital ad ecosystem at the moment, because there have been structural changes in the industry relative to areas like growth software, semis, semi cap equipment that have really nice

cyclical and structural growth tail winds over the multiyear, notwithstanding some of the issues we've seen with the u.s. government getting more aggressive on our semiconductor stance with china. >> denny, thank you for joining us, we appreciate it. the major indexes all up more than 3% over the past week. amid the recent run-up there's still value to be found, or so says your next guest he says, if you want it, you've got to look for the financials let's go value hunting with sir rot steady at dcla also not only a cnbc contributor, but arguably the best one we treat you well on "power lunch. >> you're very kind. sir rat, value, the financials, rising rate environment. we've got a lot of global

conflicts, a lot of global fusion over what's going to happen in europe and parts of china. why are you finding value in some of these financials >> if you look at the environment, broken down two different companies, morgan stanley. 60% of business is wealth management the rest of the business is capital markets, m&a stock selling less than 11 times earnings, solid balance sheet. almost 4% dividend yield a big buyback in place if you look at acquisitions, these are all a creed. they have very little credit exposure they really have almost none if you think about a company you want to own that has occurring revenue, has a great business management team, it's a stock trading at a discount to the s&p growing at a much larger rate than the s&p the second one is american express. here is another great, well-run

company. the brand is incredible. you've seen a huge amount of travel and entertainment the thing people don't understand about amex, gen y and z, credit cards in the platinum area, in the higher level. the recurring revenue, 90% rate of people keeping their cards. we see that as a great inflation play as people spend more money, they make more money and they're global in nature look at the travel and entertainment business it's really, really growing. >> we're talking about a consumer-led slowdown. we don't have much visibility on the consumer longer term, sarat. default rates are inching up once people wake up and realize they're paying 22%, not 7% on their credit card, it sounds like you're fairly confident in

a consumer. >> remember, amex is much more of a charge card than credit card if you look at small businesses also spending money, all this coming out and all the data. look at the airlines right now you can't get a seat look at the hotels what amex does, it makes it so much easier for people that have the card not saying you're buying a company with 20, 25 times earnings, this is 13 times earnings they reinvested a lot into their brand. this is something you want to own. it's already discounting a trough to your point it's already discounting at its valuation which hasn't been this low in a long time. high quality companies, those are the ones you want to buy when you see the slowdown. when we come out of it and nobody knows when the bell is going to ring. when it does, these are companies that need you out of the downturn as opposed to ones that you still want to be defe defensive. >> do you think, sarat, the market should be discounting a slowdown as much as it is? >> i think at this point the

market is so confused as to what the fed is going to do and what's going to happen geopolitically, that it's shooting first and asking questions later. high quality companies are trading at high single digits, low, 12 to 13 times earnings they've already been discounted. i think it's more of a fear factor you have this when we had the covid factor, too. the proof is going to be can you execute. amex will grow earnings by 20% next year but the market doesn't believe that when you have high quality management teams and brands, those are the ones you want to own, especially when you're on the discount rack. >> sara stnchts, nice to see you, thank you >> thank you. >> coming up, allstate should stop all buybacks, that's the call from a wall street strategist who says there will be consequences if they don't switch gears.

john waldron, we'll talk to him about the key to investing in this market as we head to break, the meme trade is back moving higher in afternoon trading. bed bath & beyond, a small cap stock up 19% look at that and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

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welcome back to "power

lunch. american companies are on pace for a $1.25 trillion dollars in buybacks this year some companies may be better off halting stock repurchases. our next guest calls on allstate to do just that or risk a potential change to its credit rating joining us is elise greenspan, senior research analyst at wells fargo. you wrote a note this morning that says you are refactoring in the forecast for allstate saying it shouldn't continue with its buybacks why not? >> it has not been a great year for auto insurers including all state. because of that they've seen a large amount of losses both impacting their current year's results. they have to take charges for prior year results just because there's been a high level of inflation. we've seen high medical costs, high bodily injury costs it's been very expensive to repair cars. because they've seen a lot of

losses, that's impacting the capital that they hold and their surplus they hold within their subsidiary we think given that drain on their capital, that allstate would be wise to preserve their capital and return less to shareholders. >> a lot of times buybacks are seen as a company's vote of confidence in its future no matter what's happening with the markets. you're saying right now the pressure on allstate to pay out claims is so great that they should maybe hold back summon any here guys, can you give me the chart for just the last week what we saw last wednesday when allstate pre announced earnings that dropped this as a surprise was an $875 million charge to boost its reserves to pay out claims it had last quarter a $400 million charge this quarter it announced losses of as much as $725 million what's really the challenge for

allstate >> well, the challenge is losses are high because we've been dealing with record medical costs, record auto body repair costs. there's also -- we've also had higher term representation, labor costs are going up so it's kind of been all sides of costs are increasing for all state. so they've had to deal with claims for the current year as well as prior years. >> elyse, is it just allstate or is it hitting, for instance, progressive, too >> we've site it with progressive and other auto insurers as well the difference is there's a different capital return strategy between the two allstate typically returned capital via share purchases and dividends. progressive has historically

used a small quarterly dividend as well as large special dividends towards the end of the year different than capital terms between the two. look, progressive also has not seen the level of adverse development and the level of losses that we've seen at allstate their results have not been great either. >> elyse, i don't know anything about the insurance business other than i drive a lot i know by eyeballing it on the new jersey turnpike, i see ten to 20 wrecks a day most fortunately are little fender-benders i don't know if people forgot how to drive and everybody is back on the roads, what kind of trends are we seeing in claims and what's going to happen to our premiums >> well, yeah. a good part of what we've seen so far has been severity the amount per loss has gone up, reflecting the inflationary factors. you bring up a great point individuals are driving back to

work, driving on vacations frequency is going to have an impact as well in terms of premiums, losses is what brings about prices in the property and casualty industry however, with the auto insurance industry, we went into this elevated loss period following a really strong year for the industry 2020 was the best year ever for the auto insurance industry because no one was driving personal auto is very heavily regulated. so the rate increases are coming, but they're not coming as fast and to the same degree as the level of losses are rising >> it just seems like the volume of incidents is just unbelievable, plus the cars have gotten more expensive as well. elise greenspan, thank you very much by the way, contessa, so you know, chub earnings are out apparently this afternoon. will you be covering said earnings >> yes, and the conference call

tomorrow you can get the latest headlines on that after i listen to the call. >> before the call, if you did the headlines, it would be weird. >> indicating some psychic ability on my part. >> or that on deck, why some amazon news is topping paypal plus does fortune favor the bold we'll talk chipotle mi ucongp. - [narrator] if your business kept on employees through the pandemic, getrefunds.com can qualify you for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours

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we have a news alert out of washington >> fed chair jay powell is facing new political pressure. the chairman of the senate banking committee, democratic sherrod brown issued an open letter warning of the risk of higher rates on the employment market he said: i ask that the fed not for get the responsibility to promote maximum employment and that the decisions you make at the next fomc meeting reflect your commitment to the dual mandate. sherrod brown says they must avoid having short-term advances in the economy and strong labor markets get overwhelmed by the

consequences of aggressive monetary actions he also said that higher interest rates have not prompted companies to bring down prices of course, it's important to remember we are two weeks out from the midterm elections democrats are trying to sharpen their message on inflation now we have the chairman of the senate banking committee asking jay powell to not forget the impact that rate hikes could have on the job market contessa. >> ilan, can i jump in for a second >> sure. >> we were talking the last hour about jay powell i made an offhand comment and lael brainard. powell has a contract. people say they can't force him out. you can't force him out. he's got a deal. however, as we have seen in the past, in the 1970s, powell is not immune to political or human pressure you can make life uncomfortable enough for him that he may choose to move on on his own it's not impossible he will leave early, is it

>> it's certainly not impossible, but i would not want to imply that that is the environment that democrats are trying to create at this point i think they're trying to high late that there are two sides of the dual mandate and the cooling of the job market comes with pain and that powell has been very clear that the economy will have to take harsh medicine in order to bring inflation down, and right now we're in a very sensitive political moment of course, the fed meeting deciding on interest rates just before the election. that's what's top of mind for washington right now we'll see how this all shakes out and whether powell will continue through his term. but certainly not saying this is what they're trying to do. >> you don't have to say it. we've seen other high-ranking members of congress tweet about it themselves. it's out there it's public. >> there are democrats who certainly have not been powell fans over the years, but it's important to remember that

sherrod brown did vote for powell and did confirm him. >> and i think, also, as you pointed out yesterday, ilan, that right now with pocketbook issues being top of mind, you're seeing democratic leaders including nancy pelosi trying to shift the focus a bit away from any perceived failures to what they have been able to accomplish and where they think there could be more scrutiny on the part of voters thank you for bringing us that information. we appreciate that >> politicians aren't going to say we caused inflation. they're going to say you -- not you, the federal reserve unelected official, you did it, not us >> if you're trying to convince voters that whatever pain they're feeling in their pocketbook belongs -- that the responsibility belongs elsewhere, you can see why that would be important to them two weeks before the election. >> what? politicians blame others at times of elections breaking news. shares of paypal jumping

today as it makes a deal with amazon to start allowing amazon customers to check out with venmo. kate rooney joining us now with more >> that's right. this amazon partnership is all about boosting venmo's appeal beyond sending money to friends and family, dog walker, babysitter, whoever you use venmo for. the scale of amazon's checkout platform makes it significant. it's a way to spend directly from their venmo accounts instead of cashing that money out to a bank account. paypal has owned the app for about a decade has about 90 million users and has seen what some call the crowned jewel for this payment company. executives have stopped promising any sort of venmo profitability on the earnings calls lately it's so far been a free offering checkout tends to be more lucrative. for venmo, they get a slice of each transaction

getting people to use venmo similar to how people use paypal is a key tent pole in the payment strategy elliott management took a $2 billion stake in paypal earlier this year. it's helping the stock outperform fintech peers paypal getting a boost from amazon news today. ceo dan schulman outlined priorities in the last earnings call, saying they're doubling down on checkout, paypal and venmo digital wallets and braintree. there's growing competition out there from square, apple, plenty of others. let's get over to bertha coombs for the cnbc news update. >> here is what's happening at this hour. house progressives have taken the unusual step of retracting a letter to president biden calling for accelerated diplomatic efforts to end the war in ukraine the letter was criticized by many fellow democrats who also object to republican calls to cut aid to ukraine

representative jayapal took responsibility for the letter but blamed its release on staffers meantime police identified the suspected shooter who killed a teacher and 15-year-old girl at a st. louis high school yesterday. police say 19-year-old orlando harris was armed with an ar-15-style rifle and more than 600 rounds of ammunition police say harris also left a note in which he claimed to have no friends or family and that he lived a life of isolation. across much of asia, africa and europe, a partial eclipse of the sun was visible earlier today. people looking skyward with proper protection saw the moon taking a crescent-shaped bite out of the sun always amazing to see that, brian. >> just don't stare directly at it >> no. >> not directly at it. ahead on power lunch, a poker for power player i have gaming on the head.

we'll speak with goldman sachs president and ceo about the markets that fed the economy and more >> and where they'll make a bet. >> and more. >> things getting worse for home builders pullity saying stocks seeing a niceum jp. why? we'll trade that name.

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we call it the power rundown. we've got a lot to get through to get you caught up on the markets. let's blast through this stocks, bonds, commodities and the state of banking with president and coo of goldman sachs. let us begin with kristina partsinevelos at the nasdaq for what is another good day for technology. >> the dow on pace for its largest monthly gain since november 2020. the s&p and nasdaq on track for first monthly positive since july stocks getting a boost from another round of decent earnings plus softening economic data which has people think the fed might down shift the tightening pace, a push into global government bonds after weaker european economic data

the u.s. dollar is weaker, so that's helping sapp trading higher to coca-cola because of a beat on earnings or revenue. pricing power a major factor for a lot of companies right now ups averting the fedex disaster, higher shipping prices helped offset lower volume. kimberly clark and sherwin williams, other examples for today, the firms hike prices of course we await meta, amazon, apple earnings which are likely to drive markets given their sheer size and market cap. it's a crucial earnings season it will either expose negative underlying fundamentals, which could prove that the bearish tone was maybe overblown or premature. ryan. >> we'll find it out christina, thank you very much. now to the bond market,

another volatile session yields are moving lower. rick santelli telling us what's going on rick >> moving dramatically lower the further down the curve you go. let's hold off on that one one second i tell you what, my sources and my phone are going wild on the sherrod brown story. remember, he's chairman of the senate banking committee, and he's not too pleased that the federal reserve is going to keep on hiking rates pointing the the dual mandate i'm going to cut through the clutter. let's get to the meat here the meat is in one week and one day most likely the fed will raise rates .75 point. in two weeks we have midterm elections. enough said. let's look at the two-year this is going back to when it made its intraday highs. it has come down a bit today's auction didn't really help because today's auction pushed yields back up a little bit because it wasn't very good.

have yields come down all that much they closed at thend of last year at 73 basis points, up about 372 basis points that doesn't look like it's rolling over here today, the 30-year bonds, up 235 basis points on the year, closed at 190. that doesn't look like it's rolling over everybody is looking at stocks saying rates are rolling over. look at boons. boons are up exactly the same as 30-year bonds, up 235 basis points they do look like they're rolling over the chart that truly looks like it's rolling over is the dollar index. look at the year-to-date, it closed under 111 closed at 95.67, closer to 110.5. when the dollar index goes down, stocks go up that is not lost on investors. >> the senate banking head is coming after the federal reserve chair. not a small story at all oil is closing slightly hear, 85

bucks a barrel, rebounding from earlier losses the head of the iea said tight supply is putting the world in the middle of the first truly global energy crisis with high commodity prices, high rates, high inflation and high uncertainty, where exactly is the american and global economy headed the next guest says the current economic turmoil is one of the most challenging he's ever faced. goldman sachs president and coo john waldron joining us with our own leslie pick picker >> thanks for joining us great to hear your perspective on the plight of the economy david solomon said there's a good chance we'd see a recession. economists say about a third of a chance for a recession in your role as president, you're talking with clients all the time, talking with the c-suite. what are they telling you about

the state of the business about the potential for a recession. >> great to be here lessee appreciate the time. good to see you again. i would say most ceos are still of the belief that the u.s. economy is resilient while there's some early sign of weakness in elements of the economy, broadly speaking it's hanging in pretty well in the u.s., less so overseas the things we're watching are the forward indicators you want to watch advertising spend. you want to watch demand rebuild. supply chains working their way through. we've gotten through a lot of the disruption does the supply get reset back into those chains at the same level it was working through or are they working off of kind of last six-month demand orders and the new demand will come in softer i think there are signs anecdote cli, in terms of clients we've talked to, some weakness coming on the forward you have to say the u.s. economy is hanging in pretty well.

>> weakness on the forward some ceos giving it six to nine months before we see a real downturn a lot of that they lay at the feet of inflation and ultimately eating into the pocketbooks of average consumers. is that something you see as well >> for sure. inflation is the singest biggest issue we have to tackle which is why you see the central banks, the fed in particular being so aggressive in its posture to tackle the inflationary impulse. definitely companies we talk to are wrestling with inflation, wrestling with commodity input inflation but significantly wage pressure. >> stickier. >> you have a pretty tight labor market with everybody predicting a recession and demand destruction coming so it's very complicated for companies to plan for 2023 because they have a very tight employment picture while they know their demand, they're forecasting demand will get weaker you can preview there will probably be wage pressure and margin pressure in corporate

america which should have some negative implication for earnings i think a lot of investors are trying to figure out where do i price earnings in 2023, how much of a decline do i want to buy into and what's the right multiple for that earnings stream as it comes down? >> as we saw banks report last week, the consumer remains very strong, very resilient you agree that ultimately inflation will have an impact if it's sticky enough you think that ultimately will be the culprit for the recession or will bit the rising interest rates. >> i think consumers, if they're not spending less, they're substituting you're starting to see some change in behavior, not seeing a rollover of consumer spend which i think everybody is worried about. my contention would be one of the issues would be there's so much stimulus put in the system that the lag effect of a monetary policy might be a little longer than normal. i'm certainly not an economist we talk to our economic i haves all the time about it. my suspicion might be that we might have a longer lag than the

impulse of the policy running to the real economy based on how much stimulus you've put in. personal balance sheets are stronger corporate balance sheets are stronger coming into the downdraft if you will. i think that might have an impact on how the policy gets transmitted into the economy. >> the log effect aspect is interesting. historians will study it for years to come. you are not an economist but a banker, at least former banker before being promoted to coo and president. do you think we need to see the other side of a recession or get some clarity before we get a resumption there's been a huge slump in activity i'm curious what you're hearing in terms of when they're ready to do deals and transact -- >> you reference m&as.

the market is -- it's certainly getting harder to price deals with the volatility and divergent perspectives on where the economy might be going it's harder to price deals and make the deals work. the ip market has been all but dead for many months now in the context of this valuation reset. we're going to price an ipo today for mobil eye which is terrific we priced the porsche ipo several weeks ago which went well it's not as if you can't get a transaction done certainly these more name brand companies well known to the marketplace can get done i think it's going to be tougher for the regular flow to come back into the marketplace until we get more of a sense on rate policy and where the fed is going to try to land i think that's the most important indicator to watch. >> a lot of this kind of uncertainty and questioning here has translated into goldman stock price which is stubbornly below book value

a discount to your peers, particularly jpmorgan and morgan stanley. do you think that's purely reflective of market conditions, the fact that there's a cyclical nature of deals? do you think there's more of a systemic concern surrounding the business, and is that something that the recent re.org you announced is looking to address? >> we're highly focused on executing our business plan. we laid out a strategy for yours ago which we called one goldman sachs as the architect of the strategy, putting clients at the center of everything we do, and working hard inside our firm to break down whatever barriers that exist in the service of those clients. we're now four years into that strat skbree and it's gone quite well wallet shares are up significantly. we're much more important to our clients than we were four years ago. i think our clients would largely echo that sentiment. the reorganization we announced is the next evolution of the one

goldman sachs strategy, all driven through the client lens, focused on how do we organize ourselves internally to serve our clients most holistically with the breadth of capabilities that live inside goldman sachs we put our asset and wealth management businesses together we put our global banking and markets businesses together. both of those moves are the second stage development of what was an original strategy to try to be less siloed, more in the service of clients in a more holistic fashion both of those business moves, we'll be much better to serve our clients. on the asset and wealth management side, we'll have an integrative platform. we'll continue to drive our management fees forward as we raise more capital and become a better steward of the capital for our clients, whether wealth management clients or asset management clients on the banking and market side, we see increasing client demand to access both capabilities. investment banking clients

wanting more marketing expertise and market capability and marketing clients wanting more ability to get deals done. we're seeing that from both sides of the ledger. we think we can better serve those clients particularly in the financing arena which is a significant focus for us, drive more financing activity and revenues for the form. we're much better equipped to finance our clients and to risk manage in a more joined up effort. >> we will keep monitoring john waldron, president and ceo of goldman sachs, thank you so much for being here. we really appreciate it. i'll send it back over to contessa. >> leslie, thank you so much after the break, chipotle earnings on deck the stock climbing since last quarter's results. customer's loyalty seems to remain strong even as prices for those delicious burritos climb we'll brk wnhatoxpt eado wt eecnext

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chipotle shares higher today

ahead of earnings due out after the bell rising food costs front and center pippa stephens joins us with more. >> the key thing to watch is whether consumers are pushing back against chipotle's price hikes. the company raised prices by 4% in august to help offset higher costs from tortillas, packaging and wage pressures and that's just the latest increase according to data from btig many prices are up 23% over the past two years traffic will be important as will commentary around how october sales are looking so far. wall street is forecasting 7.3% same store sales growth during the third quarter. management previously indicated the number would be in the mid to high single digits. analysts are looking for $2.23 billion with eps at $9.21 per share according to estimates one other thing to watch is

restaurant operating margin. if traffic is holding up, it means chipotle is able to pass the higher prices to their customers. brian? >> pippa stevens, thank you very much still to come, we're going to trade some key earnings movers in today's three stock lunch. "power lunch" will be right back td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. realtor.com. there's so many houses for sale. where do we even start? ♪ the house whisperer! that's right. i was raised in houses grew up in one. now i help people find theirs.

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. it is time for today's three stock lunch. we're looking at some earnings movers you got ge down after earnings fell short and the company cut its full year outlook you got halliburton also down. despite some doubling profits in the third quarter. sounds like good news. and home builder polte group, that stock helped by lower yields, but better than expected margins. let's talk about it. trade all three with victoria green, g-squared private wealth founding partner and cio victoria, great to chat with you again in the daylight time let's talk about ge first of all. ge, a healthcare and wind turbine and energy company how do you view the number and how do you view the name >> yeah. i look at it as a buy, all about renewables that's what dragged down earnings they're looking at streamlining their company and spinning on health i look at this as a company in

transformation i think they ripped the band-aid off, supply chain and renewables tough with wind turbines this year i think it has got all the bad news out of the way. we're a buy on ge. >> halliburton, what did you get from their earnings call about future demand? >> drill, baby, drill. their numbers with schlumberger were fantastic they grew even with the writedown in russia. they got all russia off the books. that's great they're looking at increased demand, saudi arabia, the middle east, united states, great north american drilling. they're passing on increased supply cost and labor costs to the emp companies that are expecting a 16% increase so i think their margins are pretty safe and i think you got a good outlook for oil and gas there. their ceo is excited i'm a buy on halliburton. >> and apparently not a lover of schlumberger's new name, slb i'm not sure what that means

but that is the new name for schlumberger let's talk about pulte home builder, one of the biggest in the united states you got rates, mortgage rates that have doubled or tripled in some cases in a year but, the stock is up because margins did well i got to imagine if you're a new home builder you can do things to reduce your own cost to maybe make things more affordable. just cut, you know, make the house a little bit smaller, right, build it out of sticks, not bricks >> the margins are probably going to go down, right? they're at peak -- this is almost peak margin for them. they have increased selling costs, may have to do discounting or deals their cancellations were up 24%. had a 28% increase -- sorry, 28% decrease in business in orders i don't want to own a home buyer when it costs you more a month i think people are staying put

i think i'm not going to buy a home builder right now when the home market is slowing. >> short 4 million homes across the nation you would think there would be a market there no matter the price. victoria greene, thank you for ginn joining today us we appreciate it. stocks are jumping again, extending a strong three-day rally. putting the dow on pace for best month since 2020 welcome to closing bell. i'm sara eisen look at where we stand now in the market, up 268, high of the day up 305 going strong look at the nasdaq, leading the charge up 2% as we are seeing relief in the bond market. buying there that's pressuring yields lower, helping those tech stocks and everybody else rally today, except for energy. the only sector in the red now everybody else is higher the best performing groups, real estate and materials and