billion, and then the feds take about 35%, 40% of that you end up with about $500 million. >> that's all right. a quick programming note, you want to turn into cnbc's business on the ballot special, tomorrow night at 7:00 p.m. >> they're going to be there at 7:00 tonight >> it's a great lineup you don't want to miss that. >> just to see them in the daytime. >> "closing bell" starts right now. a crypto crash spooking stocks and the market loses early gains. this is a make-or-break hour for our money. welcome to "closing bell." i'm sara eisen here is where we stand right now. tesla, more than 200 points. at the high of the day it was up 528 points what is contributing health care is having a good day. bowing and american express the biggest contributors s&p is only up about 7 points. at the high it was up 52

we had a strong rally. the nasdaq has gone negative on the session. so far for the week we're still higher by about 0.8% coming up, mike wilson on why he's predicting a short-term market rally in the wake of the midterm elections. >> plus, we will take the pulse of a consumer in an exclusive interview with ceo of kimberly-clark take a look at bitcoin the cryptocurrency has been extremely volatile, plunging below 19k after binance announces plans to acquire sam bankman fried's ftx. let's bring in mike santoli. we have to start on the crypto news, what it means and why it is spilling over into the broader market. >> it's not so much there's direct linkages, but the interday moves, when you're

talking about a multibillion potential liquidity crunch that requires a backstop from a competitor in a market where there are a lot of investors not just in bitcoin and other coins, but in ftx itself that own a lot of other things, venture money, private equity and hedge fund managers to me it's not about we know what the implications are, it's the fact that you don't know what the implications are. you see a loss and a breakdown in the bitcoin price below a support level. the connection with the way the nasdaq has traded was pretty tight. the high for the day around 1:00 p.m., and then we see this bounce around 2:30 that's when the equity markets did bounce in the absence of other news i think it's a stress point people are monitoring probably not going to be the lasting driver of what stocks are going to be up to. but it's obvious today when you're talking about any kind of capital market pressures coming from the unknown, that's a problem. >> it doesn't inspire confidence

in bitcoin there's a spillover effect robinhood down 19% coinbase down 13%, just on this idea that maybe there's more regulation or there's a lot of instability. >> also the idea that previously the savior to a lot of other distressed crypto platforms is now itself in need of some kind of help. >> sam bankman freed what else are you looking at >> one of the stories over the recent weeks has been how much negative news the market has been able to absorb without breaking down further. it hasn't gotten us very far this looks like 3600 to 3900 we came up short of that i think it is relevant we closed the gap that was left by the press conference jay powell gave last wednesday, just above 3800. it's all preliminaries obviously we'll get through the midterms and see if the seasonals kick in. take a look at the measure of

bond market volatility, the move index. it's effectively the vix for the treasury market and it needs to calm down for equities to get an up trend going it's rolled over nicely as it did a couple other times when you did get relief rallies it's still in an up trend. it's not truly calmed down all investors want visibility to where the fed is going to end up with short-term rates. it should help it stabilize around a yield range and that would be a help in general to all markets. so it's constructive but not necessarily persuasive just yet. >> mike, thank you mike santoli every sector is higher except for consumer discretionary tesla is down another 3%. let's bring in mike wilson from morgan stanley. mike, really glad to talk to you, especially today, because you did have a tactical bullish call and part of it was on the midterm election, that that would help stocks and bonds.

why is that? >> that's right, sara. we made this call two and a half weeks ago and it's worked out. the first part of the rally was really just positioning and sentiment kind of getting washed out. in order to get further support for this rally we feel like rates need to come down. so today ten-year yields are coming in. we're still too high for stocks to make the next jump above the range mike was just talking about. we do think that tonight's election could be very important in that regard because it looks like the house will go the way of the republicans that means gridlock, probably less fiscal spending will be achieved we think it may not be in the market like when we had the georgia runoff, that wasn't in the market and rates went up and we got more fiscal spending. we think this is an interesting juncture the cpi is important on thursday but we view that as an event that has to pass at the end of the day, we think inflation will be lower next year the peak is in

it's just a matter of pace and timing the cpi is an event that has to come and go. we won't know the answer potentially for a couple of days, maybe a week but directionally we like the setup here as far as today's action, the rates market is behaving better, the dollar is weaker it's quite impressive and a nice offset to the damage that's been going on in the more speculative parts of the market. >> i want to challenge the political point right now, because i get it's conventional market wisdom to think gridlock is good for the market and good for ultimately the economy, reign in the fiscal spending but do we really want more standoffs over the debt ceiling on the brink of a potential default or government shutdowns or nothing getting done in case we go into a deeper recession? >> yeah, that's what we need to

separate, a trading call versus our core view. i completely agree with you that this won't solve our problems for next year, which is we're still going to have to go through an earnings recession and that's probably going to be kicked off in the fourth quarter earnings reporting period. i agree with you ultimately this is a trading call we think it could be very important for bonds, which would then spark stocks and we'll see how it goes. we won't stick around if we feel like these things are going against us but i agree with your conclusion that gridlock doesn't solve the real problem for equities, which is going to be earnings next year, nor as you rightly point out, if we go into recession, that may actually be a hindrance for the recovery we're not out of the woods at all yet on the bear market. >> or it could be bullish because it could mean the onus is all just on the fed as it always is, and they're going to have to pivot and completely ease because they're going to be the only form of stimulus. so, mike, what is your call? because we're at 3825 and i

think you're in june '23 3900. are you still as bearish >> we've been saying for a while, we're not as bearish as we were at the beginning of the year because we think the 12-month view looks better now than eight months ago. the problem is the path. we think that ultimately will bear market will make new lows and it's a treacherous path. this year we think it's been easy to have a bearish view and ride it. now it becomes more tactical now we have to be more cognizant of bear market rallies we're not trying to capture every penny of the bear market and understand that we want to get long again at some point we've got to be disciplined. we think below 3400 is a sweet spot for adding serious asset risks. we felt like the trading rally at 3600 was a good trade nothing has changed. we think ultimately we'll put the real money to work when we make the final low probably sometime in the first quarter. >> so bond yields have to come

down, which a lot of people are looking for to buy stocks. and then there's the earnings expectations, and you have been saying that they're, what, still too high and not factoring in a likely recession, which is what we're facing >> that's the second part of our fire and ice call, is that we had the inflation risk, the fed is dealing with it now and now we have to deal with the impact of the tightening. that will come through the earnings channel we think next year could be 20% too high in terms of the consensus estimates relative to what we think ultimately will play out i don't care what you think the multiple will be that's not in the stock market the good news is a lot of individual stocks have probably already discounted that. it's been that we're seeing rotation into other parts of the market and i think it's premature to make a bet that's sustainable. but i like the signs of that

what we always look for at the end of bear markets is what's working at the end of the bear market because that's probably going to lead us out to the other side and that would be financials, energy, commodities and industrials. those groups look quite good on the other side of this so we'll be dogmatic we've got to start putting money to work over the course of the next three to four months. we don't think the bear market is over until the earnings estimates come down. >> i don't understand why they haven't come down. you're not saying anything new we all know that we expect the terminal rate, the market is pricing it now, to go above 5% and a lot of tightening in a very short period of time. why do you think the market has been reluctant to price in an earnings recession like that >> some people would argue that we did 3500 is a pretty good level and a lot of other individual stocks may have done that >> but to your point, the expectations haven't come down that sharply >> correct that's exactly right

and that's the artform of what we try to do we've done this a million times over the last 30 years and i will tell you the earnings forecast always take longer to come down than they should part of that has to do with the way that estimates traffic company guidance companies have not really talked about 2023 yet and until they do, these numbers can stay stale. and we think that will rectify itself probably in the fourth quarter. maybe we're being too precise but that's what we think. >> always appreciate it. i know a lot of people are following your calls. >> appreciate it. >> thank you for joining us. >> mike wilson, the chief u.s. equity status of morgan stanley. do not miss business on the ballot tonight at 7:00 p.m., featuring a great lineup, including dan niles and many

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. cryptocurrencies and crypto related stocks are plunging after binance agreed to buy ftx.com, sam bankman-fried's

ftx, which sparked concerns about crypto-adjacent stocks you cover robinhood, coinbase as well do these kind of moves make sense to you we're seeing them 15% to 20% down. >> i'm actually surprised coinbase is not down more because i think this speaks to the kind of inherent risk in the industry if you think about it, this is the third seminole event after the stable coyne collapsed, three arrows capital and now this it shows you the conflict and reliance on these exchanges which people can't trust and how quickly you go from being so very sought after to on the brink of insolvency. i think this is really concerning for coinbase. >> why coinbase specifically because it has similarities to ftx and it's vulnerable to this type of liquidity event? >> exactly because if you think about 90% of their revenue, at least, are made from these tokens

so they're just trading these tokens there's very little diversification. the question is, can people trust the tokens that they own and what happens if everyone is trying to sell those tokens at the same time. and i think coinbase is specifically prone to these issues robinhood not so much. only 14% of robinhood, people don't understand that only 14% of robinhood is crypto everything else is equities, options, et cetera so i think there's an overreaction on robinhood and i'm not surprised to see the reaction on coinbase. >> didn't people think that sam bankman-fried might buy robinhood? isn't that part of what's coming out? >> i think what's happening is a couple things. first, he owns directly or indirectly a 7.6% stake. i think people are maybe worried about his personal financial situation and they're worried that it would get sold i think after robinhood, and i met with the founder last week,

i think the situation is so much better than people think right now. they've turned around their business, turned around costs. i don't think they're for sale anymore. i think anyone that thought that he was going to buy robinhood, and i spoke with -- i think that was basically three months ago and i think now the situation is better operationally i don't think it was on the table over the last month or month and a half since they've improved the business. >> it's just crazy because sam bankman-fried yesterday tweeted that the assets at ftx were fine, quote, they're fine, and does this happen because it's not regulated? >> that's exactly my point this entire industry is very little regulation, a lot of interdependence, a lot of leverage when one thing implodes, everything else falls like a domino this kind of cocktail can be bad

overall. i would watch coinbase this is a red flag in my view for coinbase because essentially it's the same business. >> it's down 86% in the last year what is it worth to you with this risk out there? >> i mean, the risk out there, remember, what we haven't seen, and that's a great point you're making, what we haven't seen is the next downward revision they're charging over 1% binance is offering it for free. now they can be more competitive toward coinbase. robinhood has nothing to lose. that's another thing that people are not taking into account. >> really interesting. thanks for pointing it out good to see you. appreciate it. let's give you a check on the markets broadly. up 341 or so on the dow, the s&p 500 seeing most sectors positive as we mentioned earlier, weaker dollar third day in a row where

we're seeing weakness, lower treasury yields as well, the nasdaq has gone back into positive territory it was down when we started the hour tesla and amazon are weaker. >> semiconductor stocks, take a look, surging for a third day in a row on several headlines, a row on several headlines, including global gownedry's

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take a look at shares of kimberly-clark, the stock up more than 7% since announcing earnings last month. the consumer staples company which is behind brands like huggies diapers, prices rose in

the quarter. i spoke with the ceo earlier this afternoon and asked him how he thought the u.s. consumer is holding up right now >> i think we've seen a tale of two consumers, or in my parlance i might say it's bifurcated a bit. we see strong demand for premium products and that continues to perform very well for us but, on the other hand, there are a pretty significant amount of consumers that are struggling with the economy, inflation overall, so we focused on being able to serve both ends of the market. >> and the lower end of the market, are you seeing typical recession-type behaviors, trade-downs, smaller shopping baskets? >> still a earlier we have tracked it with the consumer confidence index which has continued to climb since the middle of the year we are seeing some trade-down. i would say higher sensitivity to absolute price point, and so

really featuring kind of the right pack size at the right price point, the right merchandising. placing the right products on shelf. and then also making sure we cascade our innovations through our value tiers has been important. >> you've raised prices like everyone else in the consumer world. how many price increases have we seen in the last few years >> quite a few for us, and you may be aware in our categories, particularly driven by fiber and resin-based products, we've taken on significant inflation, perhaps more than a lot of the industry so we have taken significant increases, probably more than i can count at this point. i think the thing for us is, though, the way we view pricing, it's been important for investors that we cover our margins. they're still under water versus where they were precovid but the reason we have increased prices and increased our cost

savings, we've got to drive our margins so we continue to invest in our brands. we've worked with our retail partners on a long-term strategy to grow our categories we have a lot of innovation to premiumize our categories. we think it's important to continue to bring innovation, market and product quality in the category. >> are you going to continue to pass along higher prices to the consumer >> the all-time high for us when i became the chief operating officer was $700 million of inflation back in 2018 over the last two years we've seen on an additional $3 billion. so it's been a very significant number i would say at this point it's starting to stabilize at a higher level we know it's going to recede at some point, a reversion is typically talked about. >> any sign of that yet? >> not yet. >> on the cost side? >> on the cost side. typically you'll see some volatility in the fiber market

and the resin market that's tied to supply and demand we would expect the cost to come down over time but haven't seen that yet. >> what about for consumers? are we going to continue to pay higher prices for things like toilet paper and tissues >> we would hope at this point our pricing, that we've reflected our pricing where it needs to be at this point and right now we're managing our business to drive the margin recovery at the current pricing we have. >> how do you balance investment in a world where increasingly companies are cutting costs and demand is set to soften? >> we're here to celebrate our 150th anniversary so we rang the bell this morning with our employees around the world invention is what we feel like is our core strength and we're very good at technology, and also consumer insights and so we feel like there's a lot of opportunity for us to continue to develop our categories, serve consumers better that's why we have increased prices, so that we can continue

to invest in product quality, our brands, and innovation. >> but at some point the volumes get hit. you can't just keep raising prices in perpetuity, can you? >> yeah, but, again, i think the thing for us, though, is our categories are still in the early stages of development, particularly in international markets, especially in developing and emerging markets. and so while we're cognizant of the sensitivity around pricing with consumers, it's our job to manage the relationship and our teams are doing that very well. >> i wanted to ask about china because your growth has held up there, even with the challenging environment. what does that market look like right now? >> well, there has been significant birthrate declines over the last five years or so and they're down almost 50% versus five years ago. so there were about 9 million births this year expected versus around 17 million maybe five years ago. but through all of that, our

business has continued to grow at a high single digit or double digit rate and, again, i think it's due to the premiumization opportunity. chinese consumers want the best for their baby there's a lot of focus on that allison lewis, our chief growth officer, reminds the teams that the value per baby in china remains less than half of what it is in the u.s so there's still a lot of head room for growth in the category, despite the fact the birthrate is declining. >> we got a little bit of a post-covid baby boom, it felt like. >> it was up slightly last year, it looks like we're expecting it to be up slightly this year. it's a little better than pre-covid, and, again, same approach applies for us. we think there's an opportunity to serve consumers better by developing products that serve the needs around comfort, fit, health or skin health. you know how important that is for a child.

and so we're happy to be in the child development business >> it's been all about pricing for a lot of these stocks. the stock is down about 12%, 13% for the year so is proctorer & gamble. when we come back, sunpower, stocks up more than 10%. the ceo will be here to break down the numbers and discuss ho■

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up 460 right now on the dow. sunpower, the solar energy and battery storage company is spiking today. the company reporting strong third quarter numbers, also increasing customers 63% from last year. sunpower announcing a partnership with general motors. sunpower will be the exclusive solar provider for all gm customers. joining us to talk about this is chairman and ceo peter faricy. it's good to have you back what drove those new customers, especially at a time, i'm wondering if it makes more economic sense with this rising cost of utility inflation to go into solar hi, sara, thanks for having me

back and happy election day. it was a terrific quarter. this is our third straight quarter of accelerating growth 67% revenue growth on top of the 63% customer growth. so we're pleased with those results. really on the customer side, i think there's two things happening right now. as you mentioned, utility rates for consumers have risen dramatically year-over-year. so if you take a look at through august of this year, across the nation they're up 14% year-over-year there's 11 different states that are up 20% or more so really your utility bill is starting to hit the pocketbooks of americans and clean energy has become much more attractive because we can lower your bills when you adopt solar power right away the other big piece is that sunpower is the number one rated solar power company in america we continue to be rated number one. i think we're beginning to see

disproportionate movement to sunpower by consumers looking for the best customer experience. >> is it the inflation reduction act? is that helping? >> i think the i.r.a. is helping and i think we're figuring out how we're going to take advantage of it. there's a couple of big adders that are potential game-changers. there's an adder if you sell domestically produced content, so solar panels made here in the u.s. there's another 10% adder if you serve underrepresented low income communities so the department of energy and the department of treasury is working out the details. we'll know more in q1. but we're going to lean in on the i.r.a. and be aggressive taking advantage of all of the incentives. >> are you worried that if republicans, after these midterm elections, gain control as conventional wisdom expects in the house of representatives and potentially the senate, no more incentives, that either some of that funding goes away in the

i.r.a. or no further incentives from places like solar in your industry because they're much more focused on domestic fossil fuel production and less on what you do >> well, i've got great news we may have found the first issue that crosses party boundaries with clean energy earlier this year florida governor desantis actually vetoed legislation that would have taken benefits away from solar consumers in florida very positive development. the republicans have formed a group called the conservative climate coalition that focuses on clean energy. so believe it or not, i actually think clean energy and solar in particular is becoming more bipartisan over time, yeah. >> i'm surprised because your stock suffered lately on the opposite feeling we're going to have to hear from republicans on that. before we let you go, i want to ask about the new gm partnership. what is the intersection between solar and evs?

how big of a deal is this that you're making? >> i think it's a potential very big deal, and really the genesis of it is when you buy an electric vehicle two things happen one is these new chargers called bi-directional chargers are not a do it yourself you need someone to install them and connect them to your electricity. that's the role we'll play initially. but the bigger role is as soon as you have an ev, your emergency usage per ev goes up about 40%. so imagine these expensive utility bills and now you're using even more energy we believe that more and more ev customers are going to want to have solar on their rooftop. today about 40% of ev owners have solar i would expect that to increase to 60% to 80% over time and they'll save money and be doing something wonderful for the world. so we're quite excited about this partnership with gm. >> peter faricy, nice to have you.

thank you very much for joining us. >> thank you >> ceo of sunpower take a look at where we stand. we've accelerated in the final hour of trade, up 473 or so on the dow. not quite the highs of the day s&p 500 up now even consumer discretionary is up still ahead, icapita ♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪

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what is wall street buzzing about? mic michelle gass will join levis as president with plans to become levis' ceo over the next 18 months she's been a huge proponent of athleisure clothes and it's interesting to note that levis is a family-controlled business. at cokohl's gass has been under attack meantime, kohl's announcing it is appointing former burlington store crowe tom kings bury as ceo. he joined the board as part of a settlement with activist investors. shares sharply higher on the news it preannounced and numbers were better than expected meantime, levi's shares are in

the red. questions, about kohl's new interim ceo -- the real estate, investors have been pushing. w no comment from the activist, but he's got to be happy to see his board director become ceo here certainly in the meantime, investors appear pleased as well with the news. take a look at disney. shares are popping ahead of earnings after the bell. we're going to break down the key number straight ahead. >> that story plus, not popping anymore, now lower we'll tell you what to look for. >> crypto on a wild ride today

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powering possibilities. we are now in the closing bell market zone mike santoli is here to break down the crucial moments we have kate rooney on crypto. we're seeing a nice rally, dow, s&p and nasdaq is broad. yields are lower, that helps do you think there's some midterm election optimism as well going on? >> yeah, i think in addition to what you're saying in determines of the dollar and bond market taking some of the pressure off there is a generalized sense that tailwinds start to arrive nothing is guaranteed, but between that and the fact that i think in the last hour or so the ftx token stopped making new

lows it sounds crazy but that seems to have also kept the market from following suit. >> only two dow stocks negative, disney and walgreens let's talk lyft first because that stock is crashing after reporting earnings it's down more than 20%. falling short of expectations. ridership below pre-pandemic levels and overall revenue up 22% from last year but that was below estimates quite a contrast to uber, which last week said quarterly revenue surged 72% the president and co-founder, john zimmer said october is the beginning of a broader rebound listen. >> we saw that we're on path for october that we've hit record all-time bookings and then from a rides perspective, we actually saw month-over-month 6% growth which was higher than what we saw in 2019. >> boy, no patience from

investors. the stock is down 80% over the last 12 months what happened? >> no patience but they're dialing ahead to 2024. they're going to have a lot of cost cuts. 2023 is a little bit of a payback year it's not a crazy expensive stock anymore. it's really just the concern that market share declines might continue and the fact that ride sharing seems like it's only viable for one dominant player, as opposed to a duopoly. >> and analysts saw the progress toward 2024 but kind of mixed on the print. let's talk about crypto. cryptocurrency exchange binance reaching a deal to acquire sam bankman-fried's ftx.com. it does not include the u.s. business kate rooney joins us how does this -- so many questions, but first, how does the deal impact the rest of the crypto industry right now? how much of the crypto industry is this?

>> it's a big portion. for one, this creates this massive global exchange. binance and ftx are two of the biggest exchanges out there. this is a deal to buy ftx.com, which is essentially sam bankman-fried's international side of the business it makes up 95% of the parent company's revenue based on financials we've seen. the u.s. business is a tiny portion of what it actually brings in. so if you combine binance and ftx it makes for a big player in this market and begs the quesf who is the lender of last resort if not sam bankman-fried? we've seen him do deals bailing out other companies, he's now on the other side of this and he's in the position to be bailed out himself by one of his biggest competitors. >> so what happens to all of those companies? what happens to all the sports endorsement deals?

the name was on the miami heat stadium. >> ftx arena in miami, absolutely the ripple effects are still playing out. some of the deals i mentioned, voyager in particular, those have been signed but the ink isn't dry. they have the option to buy but they haven't done that yet there's questions over if that actually happens, voyager has run into regulatory issues and questions from state regulators around securities issues the other question is in order to get liquidity for sam bankman-fried, he's got a lot of private investments. sky bridge he really has his hands in many everything in crypto if he's looking to get liquidity, sure up his main businesses, does it have an effect on some of his venture capital investments and what happens in the secondary markets. is he going to rush to sell some of these liquid tokens you can see it affecting the

price of solano. >> so many ripples to watch here what about the players themselves sam bankman-fried, what is the history of this relationship here because it strikes me that it was sort of a brutal way that this happened. because binance helped trigger the run on ftx >> it's been tense it started with drama over the weekend. there just seemed to be a spat between these two high profile crypto billionaires. a lot of people i've been talking to are surprised that it's gotten to the level where there's a deal or any sort of serious market implications. but these two, it goes back years. binance was one of ftx's first investors, they helped build this company flash forward, binance decided to sell out of ftx and say they're going to cash out in the last equity round. in exchange they got these ftt tokens which are really closely tied to ftx and that's where

some of the cascade effect is. the token is down about 75%. they've been frenemies here, going at each other over the weekend. now you're seeing a deal on the other side the question we don't know is will this deal happen. it is an loi, it hasn't necessarily happened yet they could still pull out after due diligence. >> kate, thank you a lot for you to find out. keep on it look at disney earnings are out after the bell. the stock has turned negative. >> it's all about streaming and the street is looking for about 160 million disney+ subscribers and this report is coming ahead of price increases for disney+ next month $7.99 is going to get you the new version with ads and then $10.99 for the current version commercial-free. and, look, disney streaming, average revenue per user is far lower than netflix so these

price increases and that new ad tier kind of has dual purposes to both booster and get to profitability and grow subscribers. there's an interesting experiment going on with disney+. they're adding more benefits on top of streaming favorite shows and movies like early access to merchandise, exclusive merchandise, and discounts at the park for disney+ subscribers. you can see them starting to spin this new flywheel to lock consumers into all the experiences with disney+ as the anchor, on top of the foreign exchange we've heard this from so many companies and as disney tries to grow internationally this streaming business that's going to be a huge headwind. >> disney, one of the few dow losers right now >> let's get another check on the market as america casts its vote to determine control of congress anastasia amoroso joins us nice rally here. it does feel like there's some

hope and according to wall street research, for the republicans to take control of at least one chamber, and that would be good for the market and the economy do you agree >> i do agree with that. i think if we do get a split congress or get a republican sweep, that is likely good news for the market because the outcome would be gridlock and markets typically like that because not much is getting done in that scenario and, also, we don't need any more fiscal sim stimulus, so i think that would be interpreted positively by the market how the market performs after that is on your side as well the typical rally into year-end could be 10%, going back to 1974 i think there's definitely some optimism around the midterms that's lifting us higher here. but i would also say that it's also the fact that the fed policy, the next leg of it, is known and priced in. if you look at the fed fund

futures, 5% is there we have priced in 5% rates or higher by march of 2023. so i think at this juncture, whether it's an inflation print or the fed, i think it's going to be really hard for any new data on inflation to surprise the markets at this point. and that's a positive. >> the only thing is, we've said that before. every time we think we've priced in peak hawkishness, we get more surprising sticky inflation numbers, more hawkish rhetoric from the fed, including fed chair powell himself that rates have to go even higher better numbers on the economy. better jobs numbers. and then here we are all over again, higher rates, sell-off for stocks >> you're right, we have all said it before and that's why any sort of calls that you make here are touch and go and really for the next few weeks or month and a half what i'm saying is even if we have a cpi print hotter than expected on thursday, that's not

likely to change the fed policy. guess what they seem to have pivoted. they know inflation is high. everybody knows inflation is high they're now squarely focused on the labor market and they want to start to see cracks in the labor market to really make sure that they get inflation under control. for now, the labor market is strong, and even if we get hotter than expected inflation print we're not likely to get more fed hawkishness because of that that's why i think we have this opening into year end. beyond that, if rates are 5%, something in the economy is going to slow down materially, and that's the part that i don't think we have fully priced in. >> got it. thank you for joining me appreciate it. we've got two minutes to go in the trading day what do you see in the internals? >> pretty solid. you had about two to one, declining volume, settling in a little less than two to one.

tesla, two-year chart, stocks down another 3%. the retail and pandemic favorites are really unwinding here that shot up in late 2020, it was when it was going to be added to the s&p 500 you're under water there, almost a two-year round trip. the volatility index has been hovering below 25 or so, now a little above 25. still in a gradual downtrend i doubt it will fall away too quickly ahead of cpi. >> so far it looks like the market is hopeful for gridlock, which you can see in the three-day rally we've got going on take a look at the dow, up for a third day in a row and more than 1% for a third day in a row. united health care, bowing, american express and salesforce. snps 500 looks like it's going to get a gain of near 1% or so and we have most sectors ending

the day higher the only one lower is consumer discretionary. the s&p is up 1/2 a percent. materials are your best performing group technology is going really strong i mentioned the rally and chipmakers some of the solar stocks doing very well. nasdaq closes higher for a third day in a row as well on this day of midterm elections i'll send it into "overtime" with scott wapner. >> the bells are just getting started here at the new york stock exchange disney earnings, so important on the number of levels from the state of the economy to the spending and streaming wars and advertising and all points in between. we'll get to our report in a moment that hits the tape we'll see how the stock reacts to it. in the meantime, let's do our