more capital look it. lucid is raising $1.5 billion. many aren't going to make it if they don't have a strong enough product lineup, they're going to have to do something like consolidation or potentially go bankrupt. >> that's a helluva last line, potentially go bankrupt. that does it for us here i'm going to join morgan for "power lunch." it begins right now. ♪ welcome to "power lunch." i'm morgan bent. it will be in full force in stores and online. we'll have those details, but is the consumer actually strong enough the winnebago ceo is here to

discuss the outdoor industry and whether rising rates in a slower economy will dent future demands. >> morgan brennan, thank you very much. we're keeping a close eye on the headlines, the "a.p." reporting on an official says russian missiles crossed into poland killing some people. there's a lot we don't know, folks. we're going to confirm everything those headlines taking the market down in the last 30 minutes or so. the dow is down 82 it was up 450 at one point today. the nasdaq is positive the market's not reacting too strongly, but you do have a senior spokesperson for the polish government saying their're convening a national security meeting again, a lot happened now. very fluid we'll get you more as we know it on cnbc. this is morgan's space the defense stocks, they're moving higher right now. i think, morgan, it's not hard to put two and two together if

you've got a potential even accident with a nato member and russians. >> as ap is reporting, just a few moments ago i got off the phone with the senior defense officials. the u.s. is assessing the situation. it's my understanding we are going to be seeing a press briefing in the next hour, and that this is being looked at closely. it's also my understanding, i think, according to ukrainians, they've seen the largest number of missile strikes there today a very fluid situation a lot of details yet to come we're keeping a close eye on this as ap is making -- reporting from a senior intelligence official that this was russian missiles striking in poland but i expect we're going to get more information as this house unfolds, brian. >> morgan, also, you're basically confirming the defense department is saying they know something. >> yes. >> if they're going to have a

press briefing about it, they're not saying it's not happening. >> but we don't know the details. we don't know if it's missile strikes, if it's russian missiles that accidentally crossed into poland, whether it's ukrainian or a different situation altogether it's very fluid. >> that's what people, investors have to realize. i know you're on twitter and everybody is going crazy about it the reality is you've got to confirm stories. until we get official confirmation from the government of poland, which, by the way, is confirmed to be meeting, convening a national security meeting. the government of poland is concerned about this as well there are also reports in hungarian newspapers of another pipeline being shut off. again, there's a lot happening right now. we're going to bring it to you, but only when we get you the facts. >> that's right. i would note that since russia did invade ukraine earlier this year, this has always been one of the key concerns that you have poland and other nato

countries flanking ukraine and that any kind of acceleration in any kind of strikes or warfare could have the potential to spill over, and that is when it started to raise the alarm bells around nato and our u.s. and allies getting involved. we also know and i know from my conversations with defense officials over these months -- and the state department's been the lead on this -- that those diplomatic lines of communication have been in full force and open. >> the other -- you know, if -- we're seeming to get confirmation about the actual incident if the reports are accurate -- again, it's a big if -- it does not appear this was any kind of strategic target it looks like this missile again, waiting to get confirmation a missile or missiles hit a farm i only bring that up in the sense that it looks like what we're hearing from senior u.s. officials, at least confirming the missile, if the accuracy of the location is, indeed,

correct, this may not be an escalation fit was a russian missile. it could be a tragic -- i hate to say accident because if there's a war and they're flying missiles off, but you get my point. there's a difference there's a lot happening here. >> i think the reports so far is saying these are stray missiles. again, this is a fluid situation and we're waiting to see what comes out of this from the department of defense in the next hour. >> i know we're going to move on, but i want to put everybody's calendar in perspective here too what is today? 14th, 15th of november thank you, gino. 15th the eu sanctions where they're going to basically make it impossible to ship russian oil by ship by outlawing insurance transactions, those do not go into effect until december 5th, but that's not that far off, morgan so there's been a lot of concern. i'm not tying the two together

i'm simply piecing the energy markets together that will there be some kind of escalation by putin if they fear that these sanctions, which, by the way r not in force yet, and there's been some chatter in italy and other places they should back off of them. will they go in, and if so, will there be some kind of retaliation by russian oil producers, vladimir putin. by the way f that wasn't with enough, the opec meeting is actually on a sunday that's december 4th in vienna, austria. the opec ameliorating is on the 4th and the full sanctions kicking in on russian oil could take in by some 850,000 to $1.5 million barrels of oil a day on most global markets. i haven't spoken with anyone did you hear that as well? >> i did. >> i worried that was in my own head that there was some kind of

reaction to those potential sanctions. a big developing story. >> plus you have the g 20 summi. where russian is concerned, china and india being in focus because of that oil piece of the puzzle. >> i know we're just fill-ins, but i'm really glad our defense expert is here seriously, i am. sadly. well, we are going to be talking about that more as the hour unfolds as we get more information, details, headlines, more clarity around this we'll be bringing in a guest in a short while. in the meantime we're going to focus on something else that the market is focusing on. that is a clear picture of the consumer emerging. walmart surpassing wall street profits and raising the outlook despite inflation. they announced a $20 billion

buyback. their inventories also improving 12.4% compared to a 26% increase in the second, the stock surging. it is up 7% right now it's tracking its best day since march 25020. it's a key part why you're seeing major averages hanging onto some of their gains right now. home depot is also higher. the company reported a 6% rise in representative knew and reaffirmed its outlook the customer spent 8.8% more per transactions, but tit dropped. >> you shop less but spend more. our next guest says the holiday season is going to be strong steve sadoff is the senior member of mastercard

steve, it's great to see you walk us through the results. what can we expect come next friday, black friday >> morgan, it looks like it's going to be a strong holiday season you're starting to see it from the strong walmart results today. the holiday is plus 15%. it's going to be an in-store as well as online in-store is back the holiday forecast for the full season is for a plus 7% that's reflecting can'ts strength on the part of the consumer but it is a little bit slower than we were seeing earlier in the summer you saw double digit growth. you're seeing an 10% growth in the month of october, so we're starting to see the lower end of the market slow down, but overall, we're seeing a very healthy consumer i would describe this -- and brian and i have talked about this a lot in the past right now we're a version to the north. a year ago there was no discounting going on there wasn't inventory right now there's obviously a

lot of excess inventory in the system because of the supply chain. you're starting to see it clearing out i would expect to see a lot of door busters you're going to see departmentsters very active on black friday the excess inventory is being cleared. think electronics, consumers the consumer wants experiences so the consumer remains strong, but the categories that were not performing well early in the pandemic are the ones you're starting to see do really well in the current environment. >> and, steve, as you know, we have talked many times online, offline, i've got a lovely spouse who, wes in the consumer products business, so we talk about this around the dinner table. i know christmas was planned back in may. what is it last year we didn't have enough stuff. now we have too much stuff seasonal discounting, heavy did counting, but how about spring i'm sure we'll have too much of.

that we had too much, not enough where do we go in six months >> we're in a more normalized period inflation is tracking in that 7%, 8% growth rate the consumer has slowed, and retailers and brands are planning very cautiously as we go into next year. they understand they had to fix the supply chain problems. we had too much of some things, not enough of others i think as we go into '23, the expectations are for a little bit slower consumer environmental. inflation is still out there we're seeing 7%, 8% growth you're going to continue to see inflation affecting it i expect to see a relatively robust number going into next year but, again, the lower end of the market is stretched. i would expect to see the higher end market they're doing reasonably well. >> well, steve, it's a little off topic, i guess, and if you can't comment on it, i

understand we're going to talk about it more with steve liesman in a few minutes. the new york fed had data today that showed household debt is at an all-time high it most of it is mortgage. but credit card debt is $900 billion. up huge from a couple of years ago. not only are the balances high e but as we know, those f they're not locked in, some apr gift that you get, that means not only is your balance higher, but your interest payment is higher. that doesn't sound like good news for the middle class when it comes to spending people are seemingly getting tapped out on their credit. >> the savings rate has -- you had a big savings increase during the pandemic. that slowed dramatically the lower end of the market has eaten into their savings they're suffering.

i think they're having a much tougher time, and you're seeing trading down you heard the higher $100,000 consumer is trading down to walmart. this is the period of time when you'll see the walmarts of the world, the dollar stores, ttjxs all of those are going form well the consumer end of the market, brian, is going to feel the pain relative to their savings. the higher end of the market is going to continue to hold up very well. that's always been tied much more to the stockmarket. the stockmarket's been resilient. it's still at a very high-level. i would think the lower end of the market, that cop super is going to have a tougher time going into the next year. >> yeah. amazing some of the numbers on the report which is called revolving debt, credit cards steve sadove, i appreciate your holiday views. >> in the meantime, a new development in the crumbling

crypto space this time around blockfi kate rooney has more what have you learned? >> blockfi purportedly preparing for bankruptcy this report coming from "the wall street journal. no comment from blockfi. they halt customers. rumors say a majority of blockfi assets are custodied at ftx are false. that said, we do have significant exposure to ftx. they ran into major issues with lending companies. ftx had agreed to buy this company at a maximum price of $240 million a new jersey-based company was worth $4.8 billion earlier this

year it had also gotten a $400 billion credit facility. sam bankman-fried said they had enough to repay customers, but as he put it, not everyone necessarily agreed with it so we're getting some updates from bankman-fried they have a million credit cores when the crypto company filed their papers they could have over 100,000 creditors. we expect to get a full list of the 50 biggest by friday >> fast and flowing, kate, thank you. speaking of, department of defense secretary writes a

briefing at the pentagon right now saying we are aware of press reports. we don't have any info at the time we'll provide an update. the polish government will hold a meeting today around 5:00 p.m. eerchlt we'll continue to monitor that. >> joo coming up, inflation seems to be cooling a bit. rising at a slower pace than expected what that means for the fed's hiking strategy and maybe how with changes you should invest and surges after berkshire hathaway sent $4 billion of the stock in the third quarter should you we'll trade it as we head to break, take a look at some of the stocks hitting new all-time highs they make engines. talking about fossil fuels we're back right after this.

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welcome back to "power lunch. is inflation finally easing. new ppi data coming in lower than expected, rising only 0.2% versus the 0.4% estimate october's number is 8% higher year over year, though let's put that in perspective, shall we it is in decline from the 8.4% here to break all of that down and what it means, steve

ceaseman good to see you. >> good to see you, morgan the 0.2% decline is something on record which doesn't go back all that far but goes back to 2012 look up the chain intermediate goods were also declining, so the pipeline pressure is easing. it's not necessarily all that additive to it here's what we want to look for. this is one month's worth of data the fed has said very consistently we've seen several months worth of data you can start the countdown maybe three months ahead of time and maybe come the new year when the third report comes in, if we get three in a row -- >> joker's wild? >> yeah, exactly, exactly. i guess that would be three of a kind doesn't need a royal flush. >> i was thinking more about the game show. >> oh, right. >> how much does ppi translate to cpi and some of the other inflation readings that the fed

watches so closely i ask that because you watch the good piece of it and the stickier piece of the puzzle which the fed seems very focused on. >> inside ppi services is this thing called trade and that's a proxy for margins with retail and whole sale companies that's come down a lot one of the things the vice chair has talked about is this notion that high profit margins have been a piece of the inflation puzzle so this is good news and bad news for investors in the following way. if inflation comes down, that's good news, but if it comes down in part because margins are being compressed, it means it kind of changes the investment piece from a stock perspective if part of the thing is as these prices have come up, they beavan able to make more money, not less. >> i think i got a c-minus in economics 101 in college, so i need some help with this, steve. >> it's a badge of honor. >> we talked about oil and gas

i heard things about windfall profits and i look across a lot of industries and i realize if you have nearly unlimited demand and a nearly unlimited supply of cheap or free money, generally what happens to profit margins across any industry, they will go a lot, right? i mean nobody had to discount the last couple of years, did they >> what matters in this regard, brian, is how competitive markets are because one of the rules of economics had you not gotten a c-minus, not to rub it in or anything, is the higher than normal rate of return should not stand in a competitive market there are questions about how competitive the united states is but let me ask you this question what town do you live in >> i live in central new jersey. >> how close is the nearest store? >> 2 1/2 miles >> what happened to your local

hardware store >> it got sold they're still operating. they struggle. >> i don't mean to pick on home depot. >> and there's also loa lowe's home depot tries to maintain its margin by keeping prices low, however, it depends on how competitive it is, if you have the ability to get back inside, they should be competed away somebody laughed at me at the last show. >> the last show was "the exchange." >> stephanie thought that's not possible. >> how do you -- how sticky -- so how sticky is wage inflation? >> wage inflation can be very sticky

that's another question they're looking for. you need prices to come down and you need the labor market slack to happen. we could have a situation of a pause by the reserve. >> it sounds like a mark depression has to be a piece of the puzzle and stocks have to fall before that happens >> if they fall with a lower fund rate, that could happen. >> understood. >> it's 15 hours of live programming and you do about 12 of them. >> sometimes 5:00 a.m., 5:00 p.m. >> they're going to hate me if i keep talking. >> no, because we're following a lot of developing stories. it was fantastic. >> thanks. is the market reacting

ov overreacting david speak is ceo of guidestone management the price of stocks goes down and it goes up is that the rye way to look at it. >> 2% being the fetd's target for being core inflation, which we're along way from, and 3.7, which we're pulling away neither is consistent with what we're seeing in the equity market and bond markets right now. the markets are way ahead of themselves it takes 12 to 13 months for policy to have an impact obviously inflation is going to come down gradually. profit margins are going to compress because costs are up and what the fed is trying to do is reduce consumer demachbltd

that means margins compress. that means earnings estimates come down, stock prices are still too high that also leads to a recession so all of these things lead us to believe that the market is way too focused on this method that we don't think we're any where near hitting >> i guess the question is, david, if we knew profit margins were going to come down because it made sense that they couldn't stay up where they were -- by the way, we get a lot of talk about oil and gas profits. they were either at or near records. you had limited pricing power and the consumer flush with cash from cheap money and stimulus. that's ooh fact. so if you believe margins are going to come down t only question for stock investors kind of to steve're's earlier point, have the markets downturn

this year adequately reflected the earnings and expectations? >> absolutely unequivocalably not. let me give you a comparison, brian. we go back to the prepandemic time of february of 2020 we're trading 18% above that level today with much higher fed fund races and a much higher inflation and a much worse outlook for earnings and economic growth. it makes no sense. that's why we haven't seen credit spreads widen that's why a lot of things we see going into a recession hasn't occurred. the market doesn't believe a recession is coming. that's the key in our mind and if margin margin is going to contract if they're going to buck b successful at raising the need, we're going to have a recession and we're going to have lower

earnings we think earnings growth today which is estimated at 5.50%, that's not going to happen. >> thank you very much. >> you bet. let's get to the breaking news of the hour the associated press reporting two russian missiles crossed into poland killing two people let's bring in our nachlt thank you for being with us on such short notice still a very developing situation. we do not have confirmation of these headlines that we just brought to our viewers, colonel jacobs, but if, in fact we have seen russian missiles cross over into poland accidental or not, what would that mean now for this conflict and whether it now spills toward -- elicits a reaction from nato >> well, it should have enlisted a reaction from nato but because

nato is disinclined to get decisively engaged itself in the conflict except indirectly by sending weapons to someone for ukrainians, the great likelihood is there will be some strong protests, a denial the from russia, and then nato will put some more economic sanctions on selected individuals and enemies inside russia. otherwise it's difficult to envision how nato would get so skpo an skpor sized about is that they would want to get into a confrontation with them on nato soil. >> it's my understanding we're seeing based on some conversations i've had, the largest barrage of russian missile strikes on ukraine to date, what does that signal about where we are at in this

conflict more broadly right now as we've seen ukrainians retake kherson just last week >> well, it's very interesting you should mention that because it tells a great deal about what the capabilities of the russian military establishment, what their capabilities are we saw the russian forces not be able to organize themselves, use their various capabilities on the ground and in the air in order to overwhelm ukrainians, and then ultimately after concentrating more on the east and subsequently in the south and not doing very well there, ultimately withdrawing to the erie side of the river the capability is not focused ground troops, which they obviously cannot deploy with any great success, but they do have an enormous capability of indirect fire. this is artillery, both short

rank and long range and missiles, some of which are theirs, many of which they're now purchasing el elsewhere because they've used a lot of their stockpiles that's the default capability. sometimes they're precision guided at specific targets, but by and large, using it as a terror weapon in order to bring ukrainians and in an ancillary way, nato to heal. and that's what they'll continue to do. they don't it on the ground. >> colonel, if we do get -- again, i want to be clear. we know they're understood going a national security meeting and the "a.p." has cited officials who say russian miss ools did

land on the border of ukraine and did eventually kill people assuming we get confirmation, what is the proper response if anything by poland. >> they don't have a proper response because they're not going to go to war over ukraine even if they themselves are been attacked they're not going to go to war by themselves. they would have to invoke section 5 and bring all of nato into this conflict, and all of nato is probably not interested in doing this. the most likely event is there will be more sanctions not that nato is going to get involved physically in the battle, even though poland itself was attacked. they'll attempt to get all of nato involved, but there will be a lot of resistance particularly from germany, france, italy, and

in particular, the united states. >> with the sanctions -- we're going to bring in another voice for a second one more to ou, which is we know the few sanctions on russian oil is outlawed by shipments of argo at sea no one's going to put a super tanker with oil uninsured on the water. those kick in on december 5th. we have extensive sanctions against russia and its financial institutions in the united states what other sanctions do you know of that are there that could work because we know that right now we have not actually it appears done a lot >> there are two things that are possible and we've been reluctant to do it the first is take them off the

entire banking system. >> the banking system. >> yeah. we ev've been reluctant to do t. the second thing -- and i we've been reluctant to do that too -- which is ignore the sanctions. if this does indicate a wider -- a spreading of the war such that our allies become embroiled in it, they will demand that we -- that we support that, and we probably would support it under those circumstances, but we've been reluctant to take them off the banking system, and as a result, the sanctions have not been nearly as effective as they otherwise would have been. >> as this story continues to unfold and develop as we have

senior white house officials saying they cannot confirm the reporting yet, let's bring in the silverado policy informer and founder to the defense department dimitri, if i'm not mistaken, you're also a an adviser to the state department, correct? cha with what. >> it appears a kum missiles have landed in powe lachbltd it's possible these might be ukrainian air defense missiles that have been launched to intercept the russian missiles but got off course the most likely scenario is they're russian missiles that went off course and hit poland and potentially kill on the

ground there i agree with your other guest this is not going to be a cause for war and how do you de-escalate it and make sure it doesn't happen again eventually we'll provide more air defense systems to poland and they're getting new short-range air defense systems as well. potentially they'll be demanding more of those to go on the border that they would be acceptable. >> i imagine that the requisitions is going to take time in terms of the key moments, key hours, right now as we get more information, what does that look like in the more immediate term? >> first they're going to try to ascertain whose missile this was.

that may not be easy some are using the same air defense missiles russia uses them, ukraine uses them as well it may not be possible to ascertain quickly if it's a caliber cruise missile that's going to be very clear because russia is the ohm one who 411, if it's proven to be a russian missile. i'm for russia to apologize for this act and employee provide compensation and see how they react to that event. >> thank you we appreciate you both joining us at this continues to unfold thank you. i'm getting a check on the market ts right now.

the dow has ticked slightly higher. >> again, i want to be very clear and i think we made it clear, nothing is confirmed. the u.s. government has not confirmed much. >> no. if it had, the conversation would be as suggested, it's an incident involving russian missiles in nato ally poland it's very unlikely a situation where anybody's going to go to war and that conflict is going to escalate and involve more players. >> to dmitri's point, it could be a ukrainian missile remember, this could be something el it's happening all the time. we're working to get confirmation at the highest levels we know the polish government is

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we want to get a quick check on the market for you with 90

minutes left in the trading day. stocks, bonds, commodities, the ceo of winnebago but let's start with the markets specifically the dow has just turned positive again, albeit barely, up 45 points right now it started the day up several hundred points, dipped lower, and is now back near the flat line the s&p is at 3989, so it slipped back below that 4,000 level we saw earlier in the trading session, and the nasdaq is your big performer today, up nearly 1.5%. it is communication services and tech stocks and consumer discretionary that are really leading the charge as we see or because we see the yield on the 10-year under a little bit of pressure this morning. >> it's morning in guam. >> i anchor in the morning. >> soit's all good let's move out and talk to a company that has a good read on

the consumer and the economy, and that is winnebago. they're holding their investor day to day and they're making a push into electric rvs, recreational vehicles. winnebago is manufactured homes. shares of winnebago down 20% but up 8% over the past month as well we have with us the ceo of winnebago. michael, listen. as a boater, as somebody who used to own a motor home, i get your products. they're fun, but they're also mostly discretionary, and some of them can be quite expensive how are you seeing the u.s. consumer right now >> well, we're certainly seeing the organization of demand as consumers fly to the outdoors. there's no doubt the economic

headwinds and softening consumer sentiment with recent conditions is beginning to have an impact on some of the sales on our side, but we still continue to see consumers engaged in the outdoors, you know, waiting to make that investment in the future. >> if i'm going for like a 40-foot custom numar, we're talking the price of a house in many towns how does the financing market impact your business >> you know, we see the retail financing side of the business right now in terms of consumer demand being relatively stable the consumer credit scores are solid and the financial companies are still lending. we have a range from a $25,000 travel trailer to an excessive

motor home the breadth and diversity of the product line helps us during these tricky times. >> to dig into what you said about this return to prepandemic normal, what are the signing that you see suggesting that it's prepandemic normal and what would you be looking for that it was signaling an eck noic slowdown? what's the difference between those two, i guess, metrics from the standpoint where the consumer is concerned? >> i would say in terms of net consumer participation in the outdoor. the neindustry is trng to what was before covid gas prices and interest rates are not immaterial they're things we track closely. but our company tries to innovate and draw new customers into the outdoors as best we can. and we're seeing that. we're seeing a diversity of a

first-time buy their is just younger, more diverse than -- it bolds well from a secular demand from downed the road. >> that seem like the right segue to ask you about this electric rv. what are some of the details around it. how quickly will it make it way or to the marketplace. what does it look like compared to the gasoline powered? >> we introduced the concept version of the first one to continue to develop the product. we're putting product now in the hands of some of our consumers who we trust most to give us some feedback during the rest of the development process, and we'll have some new news in january of 2023 abin terms of t launch you'll see the price of the rv

being a little more excess irv than the ice version, but the great benefit of these products is the ability to live off the grid without a power source and be closer outdoors, be closer to the hiking trail and still feel good about your impact on the outdoors >> michael, next time we're going to do this interview, it's going to be on like a 35-foot-long launched gt can we make that happen? >> that would be amazing. >> you know your products. that's a great chris-craft boat, and we'll actually make that happen. >> chris-craft, legendary brand. michael, appreciate you joining us thank you very much. all right, coming up, follow the fun. some of the newest 13 f filings show what the biheg dge funds are buying right now or did at least six weeks ago. we're going to trade some of those names.

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welcome back, warredaniel l built a $265 million stake in bath and body works, and increased stake in canadian pacific railway which is valued

at roughly a billion dollars should you vfollow, let's ask victoria green great to have you on let's start with taiwan semiconductor. >> that's a buy for me i think when warren buffet sees value in a growth stock, it's something to pay attention to. 53% or better growth mantra. about 13 times pe, down about 28% on the year before the buy was announced. it really is an attractive stock. there are head winds you realize when buffet starts to build a position in a stock, he's not looking to make a quick buck in the next week or month it may be a year or two before it pays dividends. 40% of revenues from smartphones, it may face head winds. it's a buy for me. >> all right next up is bath and body works you're laughing. why are you laughing >> i just can't get on board with it. i mean, it finally finished the

spinoff with victoria's secret if you look at tax on hand has dwindled the last three quarters versus a debt at 6 billion just not something i'm getting on board with. sales are 5% lower it's expected to be 7% lower in q3 it's stuck in the range, 30 to $40, down trends, i don't see the catalyst story behind the stock other than maybe it's cheap, but it might be cheap for a reason. >> final name, canadian pacific? >> railways are a great player during difficult times they're close to grain and canadian grain exports are up 7% on the year. and they should complete their merger with kansas city southern in q1 and that's expected to generate about 300 million in synergy. we see this as a well drawn company, strong pathway to solid earnings, continued growth in earnings their runway is able to support revenue and earnings growth so we look at this as a great place

to be. it's gotten a little expensive, but we think it could continue to rise because it sets a quality stock with recurring revenues right now in this environment, i see them as a strong buy. >> we like it. two and one. thank you. up next, we got the laugh, the bath and body works chuckle there. as americans pile up debt again, a key interest rate is setting an all time high, under e microscope dominic chu is next. an? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

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hi, welcome back to "power lunch," dominic chu joining us with the details hi, dom. >> this is interesting when it comes to credit cards, we know that the interest rates are high but when it comes to store brand credit cards, meaning the ones you get directly from either your furniture store or electronics retailer, those the spinterest rates hit a record high. they looked at all the credit cards out there, and retail credit card interest rates are pushing 27%. that's a huge deal because it does represent a record high one of the after effects of the fed raising interest rates, but it's having a more profound effect on this specific part of the market for those consumers who take out credit card debt with regard to individual retail outlets or stores. one of the things it's done is

push the costs of that interest up significantly for a lot of people who take out that kind of debt now, according to their study, they look at a number of assumptions, looked at the total debt that people carry the rising rates right now account for about $1.6 billion of new additional interest charges, based upon those borrowers who just pay off the minimum amount on their credit cards every single month that's a big deal because it is costing consumers a heck of a lot more money one of the things to keep a close eye on, though, is some of the stats around it. for store only cards, for average aprs, it's 28% for retail cobranded credit cards it's around 25%, and general purpose credit cards, those that don't have a necessarily store affiliation are around 22 1/2% as well what it goes more to tell you a little bit about is this notion that as we talk about the federal reserve, and its numbers that say that more and more households are taking on consumer dealt, one of the

reasons, yes, is rising rates, but also use of certain types of credit cards, and that's the reason it's key. for certain types of cards, those consumers may feel more of a pinch. this is all critical as we head into the all important holiday season where promotions for credit card openings could be more in play. >> to your point, it's a key time, and the great irony is as folks savings begin to draw down, maybe they start spending more it is an inflationary environment. those rates are going to continue to go up and it becomes somewhat of a cycle. >> one of the important points to look at is from the consumer side of things there are a lot of reasons people open the store brand credit cards to begin with often times it's become they come with no interest or just no interest at all for some of these types of products and assuming you pay them off in full one of the things you have to keep a close eye on now, if you open the cards, you pay off the

balances before the interest free period expires because many of them will actually go back and retroactively assess you interest for the balances even if you just paid it off right after the balance was over so that's something to keep a close eye on as well >> that's ansneaky. >> watch out when you open credit cards. >> 28% apr >> some of them push up north of 30, just so you know >> all right, another way to watch your wallet. dom chu, thank you just want to wrap up the end of the show, folks with the news that's out there by the way, social media, everything else, we want to be clear on what we know, what we don't. ap has reported that a senior u.s. official, here we go, ap has reported that a senior u.s. official has sighted a russian missile. the story is going around like wildfire there's a lot more we don't know, and the u.s. government, morgan and you speaking with them on the phone, they have not confirmed anything. >> this is a situation that is

being assessed it is a fluid situation. we do know based on nbc reporting a senior administration official does say the u.s., they can confirm that something has hit poland they do not know what that is. it's not confirmed that it was a russian missile, and that is why we continue to watch. >> a lot we don't know "closing bell" will pick up the story and more now stocks pulling back from their highs in afternoon trading after reports saying russian missiles had crossed into poland killing two people welcome, everyone, to "closing bell," i'm sara eisen. you can see the dip into the red. on the breaking news out of poland, treasuries also were bit up all day long. they get a sdrtronger bid, safe haven bonds.