are going to be targeted measures and prevention goals. >> i'm thinking about you and some of the other friends i have over there as well i saw on reuters that the number of cases in shanghai was the highest since may. you wonder if it's even effective and to change it would have to admit, by the way, we've been wrong the last three years. i can't see that happening thank you very much. that does it for "the exchange" here if she -- if she allows me i will join contessa brewer on "power lunch" coming up now. do i have your permission? >> let's do it welcome, brian, welcome viewers to "power lunch. i'm contess ta brewer. as the fed hikes rates and yields soar tech is taking a beating this week. one market watcher says there's big opportunities in this sector if you know where to look. two analysts battle it out

over a stock to own. we'll get into that. thank you very much. as far as the markets go, it's a volatile session for stocks as we were up big in the morning, 600 points in the dow, went negative, given all the gains we're sort of in the middle, i guess. the dow is up 4 points the nasdaq and s&p are down by the way. the move lowering stocks correspond to yields, hitting the highest levels in 2007 or maybe there's more sellers than buyers shares of block are surging, beating on the top and bottom line subscription and transaction rose twilio crushed after reporting a quarterly loss and weak sales forecast, the semiconductor with all three semi sector etfs he said by the sea shore with sea shells, contessa, moving higher by more than 2%. >> stocks on pace for weekly losses on continued fears of rising rates

the tech space feeling the most pain here. the s&p tech index down 6.5% multiple big cap tech stocks at multiyear lows including amazon, microsoft, meta, still, our next guest sees some opportunities in big tech, but he caution against companies in transition. let's bring in michael, founder and ceo with destination wealth management can you, first of all, give me some details about what you mean by companies in transition >> well, look, for example, what's happening with twitter, for example. the transition they're in right now, we don't know what that's going to look like, but clearly there's going to be a change in their business model look at the company like meta, who was facebook or is facebook, but now is moving towards a sort of virtual thing i think companies like say a netflix, if you're uncertain what the new rate plan is going to look like, i think you're going to see challenges for

companies where investors don't have more certainty about what their business plan is and what their profitability will be. i think cash flow is going to matter, especially going to a recession >> do you think that what we've seen say, for instance, on the jobs front, with more jobs added than expected, the unemployment rate rising a bit? i know we're looking forward next week to consumer price index and what sentiment looks like moving forward >> right. >> do you think any of that matters to your thesis about opportunities in technology? >> no. i don't. because i think if you're buying technology, depending on which technology you buy, you're basically in it for the long term and you're getting really an opportunity that has not been available to investors in quite some time, based on the market rally. i think that what's happening with the jobs report was kind of, i guess, it was kind of good news in terms of the unemployment rate clicking up a

little bit that will certainly -- here in silicon valley you're seeing lots of layoffs right now. everything is going to come down to whether or not we go into a recession engnext year, i think will, you want to be in companies that are pretty strong. >> including amazon, we heard that concerning its corporate workforce, but you say amazon is one of the companies, along with disney and apple, investors should consider buying why? >> investors should look out on their doorstep right now and see if there's a package i mean that's how much people use amazon it's sort of a regular weekly visit for people oftentimes. a company like disney is not getting i think the credit they deserve for what's happening in the theme parks. they're constantly sold out. i know they have challenges at espn, but i think they will resolve those challenges apple is a cash flow machine there's a reason why it's warren

buffet's largest position. we're a believer in that position and we think they're going to continue to grow the services space. >> michael, it's brian something important from a macro lesson perspective that maybe you could help our audience out. we got a lot of viewers and investors only been in the markets the last couple years, mostly only known good times they hear recession, and it sounds scary, but history also says that sometimes recessions can be the best time to buy stocks for the long term. >> yeah. in fact, if you think about what's happening right now, brian, i think the market is down because people think there is a recession now or will be in the near future, so i think that when you have down opportunities in the market and a recession or expectation of recession certainly does that, i think it's a great opportunity for investors to cherry-pick and be selective, go slow, don't put everything in portfolios in one day, but i think it's time to

sort of drip into these sort of names as long as you're a long-term investor. >> michael, real pleasure. thank you. good, long-term macro lessons. i think they would say sometimes, contessa, it's always darkest before the dawn. >> they would say that. >> i don't know who they are. >> people in the back room. we want to pivot to the housing market now conditions, they're rapidly changing a few months ago you cooperate find a home to buy and if you found one, basically you had to buy it with cash or bid up other people, 100 in line for an open house. now supply is growing at the fastest pace ever, and here's what the ceo of tripoint homes said earlier today on cnbc. >> consumers on the sidelines, on one hand they see and hear the headlines about rates going up on the other hand, where are prices going to go we reported orders down 50% year over year.

generally the whole industry is selling at half of what it should be selling. >> all right diana olick joining us with more talk to us about my. are we starting to see a pop in available homes for sale >> we absolutely are, brian. supply is still below prepandemic levels, but that is changing rapidly the number of active listings jumped 33.5% in october from the year before hitting the highest level in two years that's according to realtor.com. this, even as new listings dropped almost 16% and pending listings dropped 30% why? well, it's not a rush from sellers. more like homes are now taking longer on average to sell than last october almost a week longer and that is leading to price drops by sellers. 20% of all listings have now had a price cut, double the share from a year ago and all real estate is local so among the 50 largest markets, 42 saw inventory rise phoenix the most, up 174% from a

year ago raleigh and nashville saw triple digit gains. listings were down in hartford, connecticut, milwaukee and chicago, all because of rising mortgage rates which rose this week at 7.29% according to mortgage news daily. the increase since january has added almost $1,000 to the monthly payment on the median price home and given the latest fed commentary it is unlikely mortgage rates will move lower, significantly, any time soon >> $1,000 can really make a difference in what people are able to afford in terms of monthly payment. i wanted to ask you about open door because that company is taking a write down on the value of its inventory can you tell me about it >> it's all part of this very swift slowdown in housing demand open door is an eyebuyer that's a company that will offer you cash for your home so you don't have to list it. they rehab and sell the homes, usually at a profit, but given the market turn, open door is selling homes at a loss. it just reported a wider than

expected third quarter loss and wrote down the value of its inventory of homes by $573 million. in a letter to shareholders the ceo wrote navigating a once in 40 years market transition has been anything but easy and required us to operate with urgency and discipline to manage risk and inventory health at the expense of margins open door purchased 45% fewer homes in q3 compared with the year before and ended the quarter with 64% fewer homes under contract to sell and reported laying off 18% of its workforce. it is now offering a new service where sellers can list their homes directly on open door site to see if they can get a better offer. open door will take a fee. back to you guys. >> diana, thank you for that all right. so what does open door's warning saying about the prospect of all these on-line real estate companies going forward, as rates maybe rise or rise higher. nick jones, equity research analyst at jmp securities, let's

talk about outperform by the way or open door, by the way, because open door's stock has gone from 39 to 2. at this point what do we do? >> so, you know, open door is exposed to the broader housing market rates are going up home sellers are looking at neighbors who sold their houses for all-time highs as home prices rapidly went up and a lot of online real estate platforms benefitted from this you had agents making more money, so they had more money to spend on advertising and that benefitted zillow, home prices were going up, that benefited the. [ no audio ] >> oh. >> those things are starting to come back down and seeing rapid month over month declines, and it becomes difficult to project and estimate what a reasonable fee is if you're seeing 7% declines since june in median home prices when typically you

see decreases. >> yeah. nick i got to -- hold on i have to jump in, by the way. thank you for -- you went on mute, i thought oh, gosh, contessa, do you hear that i thought it was me. the stock is down 95%. so do you buy it and just say, i'm going to roll the dice it's either going to go up or go away right? just -- at some point housing will turn around and i can get it for $2 if it can survive? >> yeah. that's the question. we think they have enough cash to navigate the near term headwinds and the crux of the question do they have enough cash to manage through near term headwinds. we think they do what does that mean? when we figure out where rates will plateau and pulling back, which i think some are projecting the back half of next year should make home prices

predictable and manage beble near term is a challenging setup. medium term there could be upside and multiple expansion as liquidity fears start to reduce. >> nick, let me ask you, because we're showing zillow down and that's a stock you cover what are your thoughts there >> zillow is a category winner for leads. they're cleanly exposed, so if volumes are down and prices are down, agents have less money they're mature and in a motivation cycle to find a new growth here over the next few years. you know, they're going to be with the same headwinds but more mature within the category we really like the buyers. it's hyper fragmented and setup in the first half of next year, but longer term there's massive upside. >> with jmp securities, thank you. >> much more downside.

>> you go down 95%, 100% stock is down 95%. >> well, sometimes - >> 95%. >> so to your point does it go away or is this an amazing bargain? sometimes when you go shopping for a bargain you find one and turns out it's a gem i mean, i think that's the argument >> we'll see doing this 25 years. haven't seen it yet. still waiting. never know could happen. >> coming up, not all can chip stocks are created equal we're putting them head to head. one makes the case for inveds ya and one more amd. >> payments, pumpkin lot tees and playing your odds. square, starbucks and draft ki kings have an abysmal day. >> what's going on that's your company >> i have it all still ahead a look at stocks hitting all-time highs eog, chevron, exxon, and diamondback energy

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welcome back to "power lunch. time for our semi showdown most of these big chip names already have reported q3 earnings, and they're riding out a pretty tough year for the sector amd and union are down more than 50% in 2022. is there any opportunity in either stock here with the bull case for amd

is harsh, research analyst at piper sandler and nvidia camp is chris roland at susquehanna financial group. great to see both of you today amd, harsh, give me a sense of where you think there's upside with this semi manufacturer? >> okay. so thanks, contessa, for having us on your show. whether you ask us to choose between amd and nvidia, it's two of the best semiconductor stocks there are no losers here i want to start off with that. we like amd for several reasons. the near term is derisked because they reported this week. the pc segment, should be flushed or cleansed out by the end of the march quarter or the bulk of it point number three on the service side, they have two very powerful chips coming out in 2023 which is unprecedented by the same company, both going

head to head simultaneously and taking share against intel and milan, the previous year's chip is on the market doing well concurrently the business, what they call is embedded is a gem. solid business, very diverse, extremely profitable you're getting a gem of a company for 13.5 times normalized earnings and 3.3 times normalized price to sales for. i'm not sure how you go wrong here >> on your note i will admit we've asked you not an open-ended question about the semiconductors but what we asked is an either or. which would you rather, nvidia or amd chris you chose nvidia, tell me why that's your choice over amd? >> yeah. as harsh was saying, we also like amd, but we give the edge to nvidia. the reason being, is we look for open-ended upside or

asymmetricle upside, and we feel as though artificial intelligence is really the platform that we can kind of rely on here so cuda, which is nvidia's operating system, essentially, for for artificial intelligence, the de facto standard out there, and we think the standard that powers artificial intelligence for the remainder of the decade. >> i wanted to ask you about -- by the way it's not fun to call it a bull fight if you're not fighting. >> two bulls are fighting. >> okay. >> you go first, no, you first. >> well, i just want to ask about a couple of the other headwinds that are facing the whole group here you've got the issue with clients getting too much inventory and sitting on all this glut of chips that it seemed like last year at this time we couldn't get enough and two, reducing the capital spending

we've heard it from micron, intel and taiwan semiconductor, do these two companies, amd and nvidia, facing some of the same things >> no, they're not so thash 'facing the consumer side weakness, there's no question about it. amd its pc business i call the problem child, but they took the hatchet to it in the last quarter over the preannouncement and the business went from $2 billion a quarter to $1 billion a quarter and it will run at that rate through the end of march and then it will start to solidify and move upward in our view as far as the capacity, they don't have a problem they go to tsmc, everything is made there for amd. >> what do you think is going to happen first half of 2023? we're talking about all these big macro headaches. what do you anticipate happens not just for amd and nvidia but for the group as a whole

>> we downgraded semis last year and spring-summer of 2021, primarily on multiples and on over ordering of chips we believed that a correction was coming we now think we're two-thirds through that correction. as we look out into next year, we could see a bottom in pc in q4, q1, a bottom in mobile perhaps q1, and we really are clearing the channel here for potential upside into the back half >> harsh, chris, i came from regular cable news where we expected people to duke it out every day all the time, so this is so -- >> we're kinder. >> it's symbiotic. thank you for joining us today have a great weekend. >> sure. have a great one. >> thank you all right. maybe we will fight. should companies be involved in

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let's get to it. our weekly etf tracker and we look at chinese tech funds inflows of $176 million in the past week. the big gains in the stocks coming after long declines a bounceback may seem natural, but also there are reports chinese banks were ordered to buy stock to prop them up. china's covid policy is a huge factory here and word the restrictions may be loosened sent the yun sharper against the dollar huge gains, 18% for crane shares china internet, consumer discretionary, up 16%. the last one emqq, the market's internet fund is more than 50% chinese holdings this data from our partners at track insight. more information on the ft will shire etf hub. to kate rooney for the news update hi, kate. >> hi.

here's what's happening. the fbi has identified a new jersey man who had been making online threats against synagogues officials don't think he was planning to carry out a specific plot and no longer poses a threat or danger to the community. united nations secretary general guterres is condemning north korea for its missile launches and urged north korea to resume talks aimed at making the korean peninsula free of nuclear weapons. and a debate in france's lower house of parliament grinding to a halt after a far right lawmaker was heard shouting go back to africa, while a black colleague were speaking proceedings were suspended and the party is protesting the penalties and disputing what was said back to you. >> kate rooney, thank you very much. coming up on "power lunch," corporate america has spent billions on causes and candidates in the midterm

elections. but should companies be involved in politics at all contessa >> could tutoring be the best tool for fighting the massive learning loss suffered by kids during covid what if that tutoring was free we'll talk to paper about its quest to improve the u.s. school system, one homework question at a time we'll be right back. ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ 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... ♪ ♪ ...writing new rules and redefining the game...

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well, we fell in love through gaming. so you can enjoy more of...this. but now the internet lags and it throws the whole thing off. when did you first discover this lag? i signed us up for t- mobile home internet ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.

all right. welcome back happy friday, by the way, everybody. 90 minutes left in the trading week we want to get you caught up on the markets, stocks, bonds, and commodities and the intersection of politics and money, which sometimes there's wrecks let's begin with bob as the markets are closing the week with a pretty strong rally we'll see if it can roll on. >> well, it was a lot stronger earlier. our high print was at the open and i have to say the action is not terribly helpful for tech stocks the story this week brian is the market is rerating 2023 earnings system on big cap names. this has been a horrendous week for big cap tech every stock is down 10% this week

look today, down four straight days and you can't really get much of a rally. there's a modest rally in semiconductor stocks today, but pretty modest given the declines that we've seen. i don't see this as evidence people are buying big cap tech stocks at this point look at the xlk, the s&p technology segts down 9% this week that is a big move we're essentially at 52-week lows or 1% away interest that. it's just been horrendous as the market is doing what they did with cathie wood stock, taking down earnings growth system for 2023 for the big names i've been asked why the vix is down the s&p is down 5% for the week. you think the vix would go up, more panic but the vix has been down 3% this week and down all month the reason this happens, the vix system what volatility is going to be like 30 days out the two big events are already pretty well known. number one is the fed meeting

which happened this week and number two, the elections on tuesday, everybody seems to believe that house of representatives at least there will flip to the republicans that means a little bit of policy gridlock. there's a little less concern about the two big events one has happened and the other is the election. remember the next fets fed meeting is december 14th that is a little more than one month away so it vix is not worried about the near term outlook. >> speaking of the fed i have to apologize, i pulled a jay powell when i said strong rally, i meant everything is terrible, but that's -- that's how it works. bob v a good weekend. >> the bizarre world. >> everything i say, do the opposite. to the bond market two-year yield hitting a 15 high today. rick tracking action at the mercantile exchange of chicago. >> yes sully, that short material ii is the only maturity that made a

cycle high yield close this week if you look at a week to date of 2 year couple should jump out, 2, 3, 5, 7s all higher priced lower yield than yesterday the rest of the curve is still slightly higher in yield and having said that, at 4.66 we're down a half dozen basis points on the day, but we're still up 24 basis points on the week. look at a 1 month 10 see there, we didn't quite make a new high closing yield for this cycle, however, at 4.16 its current trade it's up 1 basis points on the day, 14 on the week. the weekly numbers i'm sure the nasdaq is paying close attention to if we look at what is going on with the recession spread, it flipped positive thursday after six continuous sessions being inverted, i'm sure that when we get t-bill options next week the

10s will finish the outrunning and you will see inversion again. it's been all about the yuan today, whether onshore or youf shore. the dollar versus onshore it's up 1.6, 1.7% the offshore yuan is 2%. these are big days and maybe it's optimism about the reopening but kind of been there, done that before, we'll have to see. the dollar index got its clocked cleaned today, yet still up just a smidge as you see on the week-to-date chart you want to watch the dollar index trading stocks when the dollar goes down, stocks have a propensity to go higher, although bob is right, seemed like that dynamic ran out the first hour of trade. sully, back to you and have great weekend. >> you too thank you very much. appreciate that. i want everyone to have a good weekend and don't want everybody to be mad, but the price of gasoline is probably going back up again. i know, we're just the messengers here, because the price of crude oil soaring

lately price of crude oil is up 4.5 bucks, it's back above 92. contessa brewer, as she mentioned earlier, china loosening its covid lockdown policy hopefully if that's the case, that is likely going to be a boost for oil demand globally, u.s. producers are trying to respond to the white house's call for more fossil fuel production, but with shortages of labor, steel, frack sand, we are increasing production but maybe not as fast as the white house would hope certainly white house calling for more fossil fuel production. news -- good news to the ears of the industry, but not able to respond fast enough as demand is going. from wall street to washington, we are four days away from the midterm elections. a lot is at stake. a lot is at stake for business business has spent more and more time and money intertwined with

politics, not only this year but in the last few years. we're asking, is it in any company's interest to be involved in politics at any level. mark moral, former mayor of new orleans and mark, i'm old enough to remember the zins citizens nooitds decision and everybody screaming big business is going to be able to buy elections effectively, big business is getting more involved in politics, money, messaging, whatever should they be >> it's being demanded by the companies, employees and investors who want business to stand for something. some of these issues may be defined as political, but some of them are more what i call values issues. the issue of the protection of democracy, the issue of a woman's right to control the

destiny of our own bodies. the respect and tolerance for people based on sexual orientation, while politics may be where there's a debate about these issues, i think many companies have to not only hear what the politicians may be saying, but they have to hear what their own employees, what their customers and investors are saying many times it's two different things i think what i see from younger workers, see from the emerging generation, they want to work and devote their tall tonight companies that respect and embrace their values that's a new reality for american business. it may not be the way it once was, but this is the here and now. >> does that imply, mark, every employee has to think the same way? see, the country is -- >> every employee does not. >> the country is split down the middle, 50/50. >> the country is not necessarily split down the middle. >> according to congress it is it's the closest congress we've ever had

i mean it's 50/50. >> don't look at the country through the lens of congress. >> okay. >> look at it through the lens of people. >> okay. >> everyone does not wear their political orientation on their shoulder shoe correct. >> you have republicans who want to protect democracy an right to choose, democrats who may be pro life these issues don't lend themselves to that easy divide and that's the thing that sometimes washington politicians do not understand. everyone does not walk around -- in american neighbors with a red or blue jersey on. they're thinking about what they think is best. my message to business is hear and listen it's tricky. people do have differences of opinion. >> they do i guess what i am worried about, let's say you have a ceo who is a far right whack job, okay or far left, which ever one it is, and you don't agree with the ceo's vocal position on certain

things but they're your boss so you're going to -- that's going to be sort of forcing you to keep quiet because you're not going to speak up and have a bumper sticker with the alternate position on your car than the ceo maybe then you quit because you don't want to do that, so the company has group think because they're all thinking the same way because the ceo has intimidated everybody into thinking the same thing. >> i think, brian, that most ceos i know, wherever they fit on the economic spectrum or thinking, first about what's in the best interest of their business and how does that align with the future of the nation. i talked to ceos who struggle with these issues because they want to be -- they want to do the right thing not only now but for the future you have to listen to multiple stakeholders elected officials are one set. you may be a business headquartered in florida, but you may be a business

headquartered in florida whose employees are all over the globe, investors are all over the globe, whose customers are all over the globe you have to balance whether you genuflect to the politicians or find the right balance in terms of the constituencies. business leaders are struggling with this all the time and i think my encouragement to all of them is to stand on principle and stand on values and you will never go wrong. >> mark, tell me how that applies to elon musk's takeover of twitter you've written a letter you want to have a meeting. what do you expect out of musk's leadership at twitter? >> i expect elon musk to do two things number one, respect content moderation he does not want to preside over a site with hate, racism, anti-semitism, shenanigans and confusion that led to content moderation policies. secondly, while engaging in

wholesale dismissal of employees, the challenges for him to build a diverse workforce. so we challenge him to do that because what i've seen from elon musk is on one hand and on one day, he says something and on the other day on the other hand he may say something else. he's got an opportunity. this is not tesla. this is twitter. you are part of the public square of america in the 21st century and you don't want to associate your reputation and your brand with enabling and encouraging hate speech, hate talk, and mistruths and conspiracy theories because for him, the impact may not simply be on twitter. it may be on his other businesses as well. >> i hope that if you -- >> this is different. >> if you get the meeting with him, mark, you come back on with us and follow-up and tell us how that went. >> certainly will. >> have a great weekend. nice to see you. >> thanks, contessa. coming up, working lunch

with the ceo of billion dollar education technology start-up paper. why 24/7 on demand, online tutoring might just be the key to increasing equity in test scores in the classroom. i wonder what he has to say about motivating kids in the first place. >> are you speaking to two kids out there? >> they tt nbeerot be watching me right now. >> do your homework. >> we'll be right back at adp, we use data-driven insights to design hr solutions to help you engage and retain top performers today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ can he stand on his own... once he's all on his own? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪

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as the economy seeks to recover from the depths of covid schools face a problem student test scores in math and reading plummeted. jon fortt brings us up close with software that could be part of the solution to help the future labor force catch up. that's a huge challenge. >> especially given the test scores that came in. philip is co-founder and ceo of paper, a montreal based educational company. paper is getting big, raised $350 million, serves more than 2.5 million students got his start as an educator, his first real business in college to help his fellow

student teachers get the required hours working as tutors he found the students online and took a cut of the revenue. >> i figured out how to make a buck i wanted to pay for my education, you know, and this ended up growing into a business that allowed me to sort of pay for a lot of the stuff i wanted to do in university and college and, so i ended up growing to be a relatively successful business we were servicing typically wealthier families who were paying 50, $60 an hour for private tutoring and it was only once i was in the classroom as the teacher that i realized that those students were quite well served there were so many choices available to them. i was like, wait a second. we need to solve the other, you know, the other 80, 90%. >> he's working to do that using software at scale. schools buy paper to get help and give teachers insight.

paper raised funding before capital dried up and because his customers are mostly government demand for him is more stable. >> the difference for us is that a lot of other enterprise businesses are much more impacted by some of the global macro economic climate that impacts, you know, a lot of the international business in our case it's not so clear that's hitting schools the same way, because of the way they're funded they have several years of funding visibility it's not so much that they're seeing -- i think the prioritization is changing they're still going to be making the same purchases, it just may not be the same order of priority that it was 18, 24 months ago. >> so a couple broader lessons for investors here even in tough times companies have better flexibility and some

technologies that have domestic government business might have more predictable revenue than others, especially if they're providing tools seen as essential. i talked to the secretary of education miguel cardona last week about the nation's report card and the low scores, and he said technology has got to be employed to help catch up. >> one question, in the services ply kids have recently left public school for private school, in public schools those tutoring services provided to all kids were funded by the parent teacher association how is it that school districts can afford this kind of service if they don't have active invested parent teacher associations to raise money? >> in the case of paper you have school districts including lausd, the second biggest in the country, investing in this, paying for this, so that all student have access to it. it's not a kind of per school access to software it's district wide then teachers ideally can be trained on it. they have to show the outcomes. >> what do the outcomes show

when you have it does it show a trajectory where students are making up lost time? >> it does, and it shows teachers in the out of class time where students are struggling on, taking more time on, what they might need to focus more on. especially during covid you ended up with students maybe who did a little better at home who had more help, those that didn't teachers have differentiate instruction which is hard more than they did before. >> yeah. john, thank you. great interview. all right. coming up in three stock lunch, we're going to be trading some of the day's biggest earning announcements. those are starbucks, those are -- >> block. >> and >> draftking. >> your company. >> it's not my company i just cover it. it's getting the ball. we'll be back in two minutes. >> easy for you to say

good luck. 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.

time for three stock lunch this is a fun one today. we're looking at post earnings movers draftkings having its worst day ever -- >> not fun for their investors. >> posted a bigger than expected loss, that's for sure. starbucks higher after topping estimates and block surging on top and bottom line beats.

let's trade them with boris schlassberg. draftkings, i just want to say the one thing that really stood out to me is that the ceo and the management is not pivoting on a path to profitability they say the fourth quarter of 2023 where their competitors, like caesars and penn are talking about whether they can be profitable in the fourth quarter of 2022 depending on what happens with mattress mac and his astros bet would you bet on draftkings? >> look, the problem with the whole business is the united states is very much a piecemeal business, state by state approval of regulators so it doesn't give you the economies of scale customer acquisition costs are very expensive it, it will take a long time for them to become profitable however, there's one lottery ticket which is that california is doing prop 27, it's expected to lose, but if it actually

passes, if online betting passes in california that's a $2.5 billion business, this stock will pop on that news next week. if you are a punter in sports you maybe want to be a punter in the stock as well. >> i would bet that it does not pass but i would also bet that the fight is not over. >> can you bet that bet on draftkings >> not legally. >> not legally all right. boris, next up, is starbucks -- taking aside that vente 20 ounce double mochaccino with six whips, is it a food stock? >> it is a good stock. it's even better today because obviously they are enjoying the ability to price on prices to the consumers, the consumer is back post pandemic and most importantly they have really cultured the consumer to ordering ahead this order automation movement has improved their ability to service more volume and obviously to do it much more

efficiently. now, the tailwind here is if china opens up that's going to provide them some very strong foot traffic in china that should be good for the stock i think it's more of a sell to put type of a situation because if china doesn't go it could be a sell, a little bit of a profit taking but overall six to nine months forward it looks like a strong stock. >> let's talk about block, formerly square, it posts a strong beat all around and the stock is way up on that news today. >> my favorite stock so far of all three today. the reason why is because they're building a fiercely loyal mom and pop customer base and putting them all into the digital economy with very good tools, quick reporting and i think that building a nice mode over here, forget the crypto business, the square business could grow in double digits. stock has been pounded to death, it has tremendous possibility to go maybe to 70 over the next six months to me this is one of the strongest secular growth trades that you can find in the market.

obviously you could have consumer slowdown in the macro picture but on a secular basis this is a strong buy. >> boris, have a great weekend all right. coming up, the answer bwhat you said -- we asked a bunch on twitter what would you do if you won that $1.6 billion jackpot. some had good answers, some of you didn't we're going to highlight the ones that we like next power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market.

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all right. earlier today we asked you if you win the $1.6 billion power paul jackpot what would you do one of you said -- this is my favorite -- i would large size my fries all right. get better goals another good one, actually pay fournr netflix. >> i would buy majority control of draftkings and fire the ceo zach would put all of it into a two year treasury and a twitter user named eamon javers says he would change his number. don't worry, we would probably find you and hit you up for a loan. >> and we know how to find you, eamon javers somebody said they would hire brian sullivan and make them their spokesman. >> how about the guy that said he would share 10% of his

winnings with you. >> you wouldn't. >> that would be against company policy. >> i would have to pay for my own hotel. >> for 10% you might be willing to bail. >> good luck, everybody. >> thank you for watching "power lunch. hope you have a great weekend. "closing bell" starts now. the major averages giving up a sizable post jobs rally though we are trending higher as we head toward the close. the dow was up more than 600 points at session highs, it is now almost 200 this is make or break hour for your money welcome to "closing bell" on a friday, i'm sara eisen coming to you live from d.c. today here is where we stand right now in the markets, so you see the dow, the s&p 500 up three quarters of 1%, we were up as much as 2% earlier you have a broad rally materials are the leading sector up more than 3%, financials, communication services having a good day the only sector lower is health care utilities are also lagging a bit. the nasdaq