anything. >> i'm not sure if you've done it i have actually purchased things secondhand and it's pretty amazing. i've done it with clothes, electronics. i just bought some stuff on ebay. >> thank you very much thank you for watching "power lunch." >> "closing bell" starts right now. well, stocks had been tracking for more gains to kick off a new month but early-session data took the steam out of the rally this is a make-or-break hour for your money i'm sarah eisen. welcome to "closing bell." take a look at where things stand. the dow is certainly off lows. we're coming back nicely, only down 58 points got as low as 226 but earlier as high as 242. what's contributing the most goldman sachs. value sectors are doing quite well, energy, utilities, health care that's green s&p down a quarter of a percent.

take a look at some of the big earnings movers of the day uber surges on a big jump in gross bookings, sofi jumping on a beat and raise as well pfizer beating estimates it's up 3.3% eli lilly cutting its full-year forecast that's the earnings loser of the day. coming up, we'll talk about uber's big move higher and other opportunities in tech when we are joined by early uber joister steve jiang from kindred ventures plus a covid winner, the ceo of hologic will join us we'll start with the market dashboard. senior markets commentator mike santoli. amazon is down almost 6%. >> a continued exit from the more expensive parts of the growth mega cap universe doesn't seem like it's too much in the way of a specific catalyst but more of the same. it's a new month and people

thought that tax law selling was a contributor. the s&p just hovering, right where it was, just about ahead of the last fed meeting in the third week of september. there you have it. you sort of had the makings of what looks like a somewhat retested low, a slight undercut from the june lows it's trying to make progress again, the long-term downtrend is still in place. right now it's a lot of waiting ahead of the fed you mentioned the stronger jobs and manufacturing data did put the market back on its heels just a little bit. in terms of value versus growth, massive outperformance all year from value and even the deepest value stocks this is two etfs of pure value against pure growth. it's strictly a statistical low pe and stocks against the fastest growth stocks in the s&p. this goes back to january 31st of 2020, right before the covid crash. they are exactly neck and neck look at the lead that growth had

a year ago it was 30 percentage point closure of that gap, and it's mostly insurance, some energy, certainly. but a lot of financials and health care as well as the energy stocks in there so it's kind of an interesting dynamic. if you dial this back a few more years, value has a lot of catchup to do still. so even though it seems like everyone loves value stocks, everyone loves the boring stuff, it's still on a multi-year basis not really back to parody with growth. >> which is the bullish argument i think we should pause a moment on the data today because that does appear to be in focus we got job openings that unexpectedly rose, which might put more pressure on the fed to do more to tamp down wage growth ultimately to get control of the inflation. on the other hand, we've got the ism manufacturing number that came in better than expected, but the index moving into contraction. that's a good sign on inflation.

>> very mixed, which is why the market didn't completely panic but you're right, this job openings data is not really the hardest data series. it's just listed job openings. jay powell has focused on it the quit rate actually was down quite a bit. that's what people are actually doing. so people are trying to massage the numbers and say it still means a decelerating labor market, but is it enough for the fed to change course. >> still many openings for every job candidate. we'll look at the full jobs report on friday let's turn to the social media story of the day and it's not twitter, for a change. axios reporting this afternoon that sec commissioner brendan carr is calling for a ban on tiktok and that is helping to boost shares of meta and snap this afternoon it's like déjà vu. didn't the trump administration try this >> yeah, we've talked about tiktok being die vested before, haven't we

right now shares of meta and snap are trading higher after a report in axios that s.e.c. commissioner brendan carr said they should move to ban tiktok now, one of the five s.e.c. commissioners telling axios, quote, i don't believe there's a path forward for anything other than a ban he's referring to recent revelations about how tiktok and its parent company manage user data keep in mind the s.e.c. itself does not have any authority over tiktok cfius does and they are already in talks with tiktok to determine if it can or should be divested to a u.s.-based company. tiktok telling us, quote, commissioner carr has no role in the confidential discussions with the u.s. government we are confident we are on a path to reaching an agreement with the u.s. government that will satisfy all reasonable national security concerns we have seen tiktok draw growing

ad dollars, as well as users, away from its rivals it's been downloaded more than 200 million times in the u.s we've heard a lot about the threat that it poses to both snap and meta. meanwhile, shares of oracle are lower on this news and that's because tiktok routes u.s. traffic to oracle's cloud infrastructure oracle shares down more than 1%. >> remember when oracle was going to be part of the deal to ipo it it seems like a long time ago. >> while we're on the subject of social media, i have to ask you about twitter. elon musk did just announce that new pricing for twitter blue a lot of speculation about this. we got some news. >> yeah, twitter blue is a subscription service it previously cost $5 a month. there was speculation that elon musk might charge as much as $20 a month, but he just came out just recently and he tweeted out that it was going to be $8 a month, indicating that's how you would be verified. you would need to pay that

monthly fee in order to be verified and you would get priority in replies, mentions in search and have the ability to post longer video and audio and you would see half as many ads so it will be interesting to see how many twitter users actually will be willing to pay $8 a month, sarah, but one thing is for sure, elon musk is trying to send a message that he is moving fast he's not messing around. he's working hard to diversify twitter's revenue beyond just reliance on advertising. certainly a lot going on. >> and get rid of the bots and all the misinformation unclear whether that could be done we'll keep you all posted as we follow the tweets. julia, thank you ju julia borstein >> meta is up 3% after a pretty rough stretch. it doesn't sound like the s.e.c. can really move to ban tiktok, though, mark what do you think? >> no, i don't think i think if you're an investor you have to assume that's a very

low probability event. i think the only interesting angle is that there's probably the issue, the unissue that has more political consensus other than lashing out at big tech is lashing out at china so it may be something that would occur, but i think the probability is pretty low. but anything that sort of gums up tiktok, that's been the biggest competitive risk, no doubt about it to facebook, to snap, to meta. so anything that's bad for tiktok is positive for meta. >> but not a reason for investors to buy it necessarily on this news >> no. >> is there a reason for investors to buy either of these companies, which got shellacted on earnings. >> engagement continues to climb. this is a company that's a highly profitable business, 30% margins. they're aggressively investing in artificial intelligence

$35 billion a year in capex. the market is treating all of that as a loss and maybe not giving them any credit for the idea that they may possibly, through all that spend, come up with better products that are better for consumers, for advertisers, for enterprises that's my guess. these companies have generally been good stewards of investments in the past. my guess is they will be in the future there's a lot of things that go behind the ai spend, but i don't think they're getting any credit on the return for that investment i don't think things get worse for here from meta, but i also didn't think that a week ago i continue to like meta. >> i was going to say, you've liked meta, you really like amazon, which right now is down 6%, about to close at the lowest since 2020 what do you think you got wrong? because it did for a long time look like these were defensive growth companies that could hold up better, relatively better in a recession. >> well, i'm not sure they're

defensive. i don't think there's anything in consumer internet that's defensive. it's cyclical. they may have some resilient factors, cloud computing, probably holds up 20% year-over-year growth when gdp goes flat or negative. i think search advertising can stay 5% to 10% overall growth when advertising is going to decline next year. so there's some recession resilient elements but there's nothing that's recession-proof the much heavier exposure the consumer discretionary, amazon's retail business, and so the most of the advertising that goes on in on the internet so that shoe is starting to drop the question we have to ask ourselves is how much further is that recession shoe going to drop and is it estimated and valued correctly in the stocks that's a very hard call to make. i'm more nervous about the next two or three months. i'm more confident about the next two or three years. >> so have you changed your

vi views -- i know you had to adjust price targets have you changed your view on any of these companies in light of what we got for earnings? >> not yet so far. we've had a couple of positive surprises. it hasn't all been negative. uber gave us positive news in terms of profits, and then you have with netflix a brand new revenue stream so those two remain amongst my top picks. i'm more caution near term, no question about it, on names like google, facebook and amazon. if you're willing to look out more than 12 months, i think the fundamentals will come back up positively and they're well run companies for the most part. i would stick with those the more they get beaten down, the more attractive they should be to long-term investors like myself. >> uber is up after the earnings mark mahaney, thank you very much shares of medical tech company hologic surging.

covid companies are losing steam, but not this one. we're going to talk about the ceo about the quarter and whether he expects more m&a in the space. you're watching "closing bell" on cnbc.

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some notable moves in the health care sector today look at pfizer, shares in the green after the company beat on the top and bottom lines the company also raised full-year guidance covid a big driver paxlovid sales were light. the company saying it has enough

promising data for its rsv vaccine to protect newborns and will submit for fda approval for the end of the year. meantime, eli lilly shares are dropping after reporting earnings, cutting its fiscal full-year guidance for the third quarter in a row that stock is down more than 3%. a big m&a transaction, johnson & johnson will acquired aboimed, at a 58% premium abiomed shares surging then there's hologic getting a big pop. the medical technology company that makes diagnostic products seeing, quote, unprecedented strength across the core businesses, with 2023 earnings guidance coming in better than some analysts feared joining us is ceo steve mcmillan good to see you. >> good to see you again. >> so i pulled out the quote, i read the quote there,

unprecedented strength in the core business. we've been talking to you throughout covid where you fully transitioned to these pcr tests. does this mean that it's a return to normal in other diagnostic testing >> i think what it really means is we quietly transformed the company. obviously you know and you've been on the front lines of reporting what a great job our team did responding to covid we used the proceeds to really invest in some additional r&d and targeted acquisitions so where we enter '23 with all four of our major businesses, skeletal health, diagnostics and surgery, all poised to grow double digit rates next year it's been masked because of the ups and downs of covid people haven't been quite sure about what's going on in our core and we used that time to quietly transform and i think it hit when we gave our guidance last night >> so is it pent-up demand for

people having to go get mammograms and pap smears, or are you seeing new demand? >> it's less pent-up demand, certainly we still want to make sure that all women are getting back to their screenings, particularly pap tests, as you said, all of the mammography exams, everything else we're seeing that coming back. there is still some pent-up demand it's really just the ongoing demand as we broadened our menu. so we have more offerings today, including things for rsv, for example, and we've broadened our menu with diagnostics. we brought new products to the market in our surgical business and we have more recurring revenue in our breast health business we've also dramatically expanded internationally. and so now, while it's not just our u.s. business, our international business is poised to grow at rates higher than our corporate average, and frankly be double digit growers here and that's been, i think, a huge

part of the excitement for next year. >> and yet covid is still with us, steve. how do you factor that into the forecast in terms of what testing is going to look like this winter and into next year >> the one thing we've been saying all along and we're going to forecast conservatively, but we'll respond for whatever the market needs i think we've produced literally over 200 million tests these are the true molecular tests with great specificity and sensitivity and the ones that the medical professionals have counted on through this. we're there for them when they need it, but ultimately for society we're hoping it goes away i do think it's going to continue to be a piece of our business and probably represents upside to the core business. we've been trying to get people to focus on the core because we know that's the true sustaining part and then covid is

additional upside. >> right have you had to convince the street that you're not a covid winner like teledoc? because the stock did very well during covid as you put the panther machines to read the pcr tests all over the place has that been a struggle to convince investors >> not particularly. i think we did a great job all along, candidly, and our cfo and team here of not getting ahead of ourselves we never wanted to be considered a, quote, unquote, covid play. we always wanted people to look at what we were doing to invest in our base business frankly, we didn't have the huge run-up during covid time that many companies did we also managed our cost base very tightly all through it and we didn't get silly in hiring a bunch of people just because we were selling a whole bunch more. i think that puts us in a great position here from both a cost base and a top line revenue base as we head into 2023, and i

think that's just becoming clearer. >> that's an interesting distinction, because a big problem with some of these covid winners. steve, you did fall victim to the chip shortage when it came to some of the testing where are we on that problem being alleviated, if at all? >> sure. we feel like the worst is behind us and our vendors, we've been working especially with the intels and some of our key vendors to help provide certainly some great additional chips for us we've also been doing an amazing job, our service orange ganizat of extending the life of the machines in the field and ultimately we can see our way in the coming quarters to getting to the other side of it. the great part is we've been able to avoid any women being affected in terms of machines being down or not enough for them to get their mammograms, and then we're gearing up for additional products coming out over the coming quarters

it's been a tough balancing act, but we've been balancing with covid and then the chips it's one of those things we take in due course and kind of manage through it. >> we appreciate you joining us to talk through some of what you're seeing. really appreciate it >> thank you by the way, we're going to have much more on the health care sector tomorrow we've got an exclusive interview with the ceo of cvs health, karen lynch, that company reporting earnings tomorrow morning. we're down 35 or so points on the dow s&p is down a quarter of 1%. the strength is in energy today, in financials, utilities, material, health care and industrials. technology is getting hit hard consumer discretionary is the worst performing, being dragged down by amazon, communication services held back by alphabet the nasdaq is down 0.7 we are a week away from the sit at telections and one of the buessteso watch is nevada we'll tell you about the

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what is wall street buzzing about? the nail-biter in nevada's senate race. katherine cortez masto is trying to hold off adam laxult. it is one of the three true toss-ups in the country and could determine which party controls the upper chamber we're joined now from las vegas at the issues at play. i was just looking at the national average on gas prices, a dollar cheaper than what it costs in nevada to fill up a tank. >> reporter: that's right. here in nevada, it has the highest gas prices of any swing state in the country there has been a little bit of relief lately. gas prices have gotten just below $5 a gallon here, to be about $4.97. it's still higher than what we're seeing in arizona, ohio, pennsylvania and in georgia.

when we've been talking to voters, they've told us that they've had to change their behaviors because gas prices are so high. in some cases it's asking friends for gas money when they go out or maybe not filling up your tank all the way. we did talk to one voter who said she's even thinking of leaving the state because she can't afford to live here anymore. this is something top of mind for voters during this final week of the election >> what about the overall economy, besides the inflationary issues with food and gas? the rebound we've seen in vegas, for instance, how much about that matter? >> reporter: yeah, so the hospitality and tourism here, of course, is something that is a big driver of growth we've heard already from senator cortez masto playing up that issue. she said her family grew up working in the hospitality industry her grandfather started here as someone who parked cars and was a pit boss at some of the local

hotels she's trying to sort of use that as a way to connect with voters, but even if they have the jobs they may not be able to afford as much as they were before because of the high prices sara, when we talked to voters, even at an early voting location, inflation is what they told us was top of mind for them both for democrats and for republicans. >> well, we'll watch it. thank you. up next we will discuss whether fed chair jay powell could signal a dovish pivot tomorrow and what impact that would have on the market, which has been gearing up for that >> and another check on amazon plunging more than 6%, in jeopardy of closing below a $1 trillion market cap for the first time since april of 2020 and set to close at its lowest level since 2020 we'll be right back.

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stocks started the day strong and then look what happened just after the open we got that jolts data on jobs the market lost all of its gains. we're down 0.4 on the s&p. september saw more than 10.7 million job openings, possibly giving the fed more reason to stay aggressive. joining us now is julia coronado from macro policy perspectives, which shows you, julia, the kind of good news is bad news dynamic

we're in in the market more job openings. does that suggest that the fed hasn't really done enough here on the inflation fight >> i think there's no doubt that the fed doesn't believe it's done enough to conquer inflation and the question is really around nuance. there is no pivot on the horizon as far as the fed pausing rate hikes or certainly not cutting rates. the real question right now for the committee is around pace do they need to keep going at 75 or can they downshift to a 50 basis point hike in december that's really quite a limited nuance around a still very hawkish path toward higher rates. >> the market is expecting 75 tomorrow and then 50 in december and then 25s after that. is that reasonable >> yeah, i think that's reasonable and i think that

chair powell will acknowledge that that is the discussion on the committee, that maybe they can slow the pace to 50 basis points in december and then maybe even downshift the pace after that but they may also have to go to a higher terminal rate given how resilient the economy has been so far and given how persistent the underlying inflationary pressures have become. so i don't think if we're looking for an outright dovish message, i think that will be disappointed the question will be around the nuances about sftrategy, how do you get to that rate and how flexible is the fomc, now that we're seeing leader indicators like housing really turn a corner and correct downward. that's a good indication that you're getting into restrictive territory. the economy is telling you that.

the jolts data obviously kind of go in the other direction but that's from september and things have been moving pretty quickly. >> the other issue here is with the fed actively trying to soften the labor market, the politicians are getting noisier, especially the democrats we're hearing from senator eliz elizabeth barren and shared brown and bernie sanders, in effect saying they're trying to crush the greatest jobs recovery we've seen in a generation that deal with inflationary problems. how do you expect that to impact the fed? >> i think it won't really impact the fed it's to be expected at this stage of the tightening cycle. i think, you know, that we've also heard not that kind of criticism from president biden, who has been studiously respectful of the fed's

independence, and it doesn't really matter for the fed. the fed, when it deliberates and meets in that meeting room and makes those decisions, it really isn't focused on those political pressures and it's trying to make the best decision for the medium-term benefit of the economy. so that has been the focus on inflation and that means continued rate hikes. >> but not to cut you off, but it could result in the opposite where the fed wants to show that it is not political and it is not influenced so much so that it will stand defiantly toward interest rate hikes away from what the politicians are interesting in order to prove they're not influenced politically and there could be a mistake there. >> yeah, i don't think that that is likely either i mean, the fed has already sort of demonstrated through the summer its willingness to kind of take extreme actions and we're actually at a different inflection point right now

we are seeing the effects of tightening start to deepen and spread through the economy again, these leading indicators are decisively showing the impacts of fed rate hikes. and we know there's lags in policy and more to come. so now the question is really around have we done enough and do we pause now and let those lags play out. so i don't really feel like that political pressure is going to influence the decision either towards the hawkish side or the dovish side. we all know what they're going to do tomorrow they're going to raise interest rates 75 basis points. between tomorrow and the december meeting, we get two more months of the most important data, cpi, the employment reports, we're going to have a lot more information on which to base that december decision >> we'll leave it there, julia thank you very much. >> my pleasure. >> julia coronado. taking a look at the market, we're down 40 points on the dow.

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estimates and slashing its full-year outlook. the company also announcing it is acquiring its rival liqui box. down 6.3% today. >> up next, an early investor in uber tells us where he cease opportunities in the tech sector right now. sofi surging and a bullish call on software stocks when we take you inside the market zone what's going on? where's regina? 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

power e*trade's easy-to-use tools like dynamic charting and risk-reward analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity we are now in the "closing bell" market zone. commentator mike santoli here as always to break down crucial moments of the trading day

plus we've got steve jang and m mark leemen. mike santoli, nothing extreme, but there was definitely a negative reaction to the job openings data, which came in hot and suggests maybe the fed will think twice about calming it down on the rate hikes what signals do you expect tomorrow >> if nothing else, it definitely sapped by energy toward betting on an outright dovish message the two-year note yield did tick higher after that news, it's back up to the 4.5% range. what we expect, i think, is powell to essentially continue to say that the job is not done, the fight against inflation remains the only objective, and they will continue to get policy into the restrictive zone and keep it there for a long time. i do think he can characterize policy as already having come a

long way rates already being restrictive and maybe observe that the housing market and everything else has shown the effects so it will be a nuanced one. it's not going to be some kind of outright signal that says we're stepping down the pace of tightening he would leave open the possibility, one would thing, for a debate about that in the subsequent weeks. >> sofi climbing after a better than expected quarter and also an improved full-year forecast net losses came in narrower than anticipated while revenue rocketed 55% higher. the fintech company adding more than 400,000 members, bringing the total to 4.7 million sofi's ceo spoke earlier listen. >> we're seeing in the results strong growth in personal loans, up over 70% year-over-year, with great credit quality in addition to that, we're seeing an acceleration in the growth of our direct deposit members because we're offering a really high interest rate on checking at 2.5% we'll offer 3% on savings later

this week. that high interest rate is driving high quality account openings >> mike, apparently good news for the market it's reacting well this is an ugly looking chart, still. >> exactly so the starting point here is a stock that was down more than 75% from its highs it seems like the things under the company's control in terms of actually addressing the market, getting new customers and growing in those areas are on track but, you know, that formula that he was talking about, paying higher than market checking account rates to attract deposits, at the same time seeing seeing loan growth to high quality borrowers i don't know how long that can necessarily last this is a competitive banking market it's not easy to just grab share. i am uneasy with a company that's essentially a bank making its money eventually through bank-like activities that still reports things like adjusted ebitda, as if it's a fintech and tech startup it's a tough blend of those

things, that sort of busted fintech story with banking economics. >> some of the analysts really still love it. >> it's a real brand it's absolutely -- it's not that there's nothing there. it's tough to find your way toward a really profitable model from this starting point without, you know, having bumps along the way. >> well, and a changing credit environment as well. thank you. we're going to get you let ready for "overtime," which you are hosting at the top of the hour we'll talk about yuber because i is up double digits after posting strong revenue numbers the ceo is joining "squawk box" this morning and stayed despite recession worries, customers are still spending >> the consumer, and especially the u.s. consumer, remains strong and they're spending and they're moving a bunch of their spending from essentially retail to services, and we are in the service sector you're going out to restaurants,

cities are opening up, you're taking ubers, and uber eats growth continues at a strong pace as well >> joining us, steven jang from kindred v kin ventures >> i was an angel investor when the company first started in 2010. >> so clearly you've done very well and you're sticking with it it does feel like a new sort of era. obviously since the company's ipo, they've been focus on profitability. they generated $358 million in cash flow, adjusted earnings was the strongest it has been. how would you describe where uber is on that journey? >> this has been a long journey, well over 12 years now since the company was first founded in 2009 even then, at the earliest stages and even up until last

quarter, naysayers were saying you can't grow an on-demand marketplace like this and also be profitable. it's basically a statement that's been blanketed across every company, including airbnb, doordash, you name it. i think what uber has proven with two straight quarters of growth in ebitda and free cash flow is that you can achieve growth and profitability, you can create a mobility and logistics network that's increasingly profitable. this feels really, really good to a lot of the early employees and investors that had to weather a lot of that naysaying. today uber has over 120 million active customers, it's done about 2 billion trips in the last quarter and it has net revenue of $8.3 billion. that's growing 73% year-over-year the ridesharing business is profitable it's proven profitable i want to say that again, it's proven profitable.

this is a big deal, a good sign for a lot of other companies in the space, for a lot of other marketplaces today, uber from a marketplace perspective is the third largest marketplace behind amazon and shopify. the ridesharing business alone is almost $1 billion in ebitda the last quarter i think there's a lot of craft around the story of uber, but the original platform has proven true the concept of building this network into a profitable state, growing globally, has been proven true as of this quarter >> does that change if we continue to see regulatory crackdown on the gig economy workers as the biden administration labor department has just put out in a proposal >> absolutely. a misguided approach from the u.s. government would be to hammer down on a global income platform that has generated almost $11 billion in earnings

for its contract workers and drivers for part-time work this is global this is 25% higher than last year and if you were to take a policy that would basically be a dull hammer and hammer down based upon the driver pool and uber and other companies, that would be a mistake what we're creating in the u.s. is the largest global mobile and logistics network. this is an incredible thing that the u.s. has been responsible for and it would be just a shame to do that this is a critical thing and this will be adjudicated not by a single agency, but actually by congress, i believe. >> lots more on uber, but while we have you, since you got in here in 2010, believing in the model and the profitability potential, what is the next uber that you're excited about?

you guys are in all sorts of consumer tech. some of them have done well, coinbase in the public market not as hot what is the next one >> well, it's interesting right now, on the web front you see efforts by facebook and meta, now named meta, in the metaverse and that's caused some anger for them in the public markets but i think it's right for mark zuckerberg to focus on that area that's a five to ten-year story. coinbase as well is on a five to ten-year story arc right now all are down but coinbase is so well positioned in the area, their trading volumes are starting to come up. they've consolidated a lot of products and shipped a lot of products over the years and consolidated them over the last six months i think they're well positioned, when basically equities, crypto and nfts and the web 3 world rise back up i'm bullish on coinbase's

opportunities in the future. >> it's great to talk to you come back soon steven jang from kin drid ventures. tech is down more than 27% if you're looking at the s&p tech sector this year. our next guest says one slice of tech has been unfairly lumped in with the laggards. let's bring in marc leman. you have liked these for a while. are you saying enough is enough? >> partially, sara we have been selective and we've talked for the last six months how we no longer talk about faang tomorrow and we want to be careful lumping the entire sector into everything is good or bad so you've got to be really selective and i think we've seen some quarters for the third quarter reports that we've seen so far and a couple of names that have been quite good and you've got to be selective i think we're looking at profits, not just growth and the companies that got ahead

of that and are playing in some of the high growth markets are going to show a lot more profits. uber obviously had a big quarter and some other ones have done quite well you just want to be really selective. >> what are you selecting? it looks like you've got snowflake, sap how do you make those choices? >> we saw a great quarter last week in a company called service now and one of the great software companies we've been following for some time. they had their best government quarter ever they showed resell rating growth they've been focusing on the bottom line and i think it's a time in the marketplace where you want to go with companies that are seeing that kind of growth despite the disruption in the economy. we've talked about snowflake before this is the disrupter in software you are probably not going to be able to pinpoint when investors will come back while this company treads water from a valuation perspective, they continue to gain market share. they are bigger and better and this will be a platform that we talk about for a very long time.

we have talked about names like this in the past, a company called workday, which took years for the public to realize what a great, powerful platform they have i see snowflake being that company. sap had their best cloud quarter, they grew over 25% last quarter. it's not a reasonable valuation. the over-sall sas market has go to about six times revenues and we're seeing buy-outs happening in the eight and nine times, while private equity is licking their chops to find the next one. we want to be selective, but we've seen other ones recently go private there's going to be more these companies are ready to go on the private side, there are players who are looking at them and i would expect more by year end. >> we saw orlando bravo buying that one do you have to wait for the two-year yield to stop going up

to buy these companies which always get hit hard. >> it's a great question. we walked into the market opening today in everything from the twos to 30-years were down and that quickly reversed. once we get a handle on where inflation is going, i think we're going to have a great re-valuation of some of these names. innovation hasn't died while valuations have. once that happens, there will be a clear perspective. right now it's six and a half times revenue, a year ago it was 20 we're waiting for the goldilocks where it's just right. >> we've seen more buy-outs in this sector. you mentioned the ana plan deal. who are the acquirers? >> vista has a fwblank check. you mentioned orlando. he was on your show. everything is expensive and he's buying stuff i think there's multiple buyers there. kkr is in the marketplace.

there's plenty of people, no lack of capital. there's a lack of conviction. >> mark lehman, thank you very much. as we head to the close, i want to show you what's happening. the dow is down 69 points. started off strong earlier in the day and then we got the number on jolts at 10:00 a.m. eastern time that showed more job openings than expected, perhaps putting more pressure on the fed to do more and not lessen up on rate hikes. that is what the big question is into fed day will they signal any kind of pivot, going from 75 to 50 basis points everyone expects 75 tomorrow will they go lower there's the nasdaq, down the most, 0.8, some very pronounced weakness in names like amazon, down 5.5%, it was down more than 6% a minute ago. intuit also down alphabet is down 4% or so. meta is doing well on the s.e.c.

remark that tiktok should be outlawed from the united states. the russell 2000 index of small caps is higher for a second day in the row and outperforming at 0.3 that's probably due to the strength in energy and financials, heavy in small caps, which are outperforming on the day. worst performer is consumer discretionary. that's going to do it for me on "closing bell. see you tomorrow now i'll send it to "overtime" with mike santoli. welcome to "overtime." i'm mike santoli in for scott wapner we're just getting started key earnings reports about to hit the tape from airbnb and amd. we will bring you those numbers as soon as they hit. we'll start with our talk of the tape more trouble at the top, steady selling in the wounded mega caps weighing on the indexes ahead of tomorrow's crucial fed meeting let's bring in joe ter nova, a cnbc ctr